Note 13 – Leases

Information regarding the Company's material operating lease agreements is as follows:

Vehicle leases

The Company leases vehicles for approximately three-year periods from several different leasing companies and from time to time changes the number of leased vehicles according to its current needs. The leased vehicles are identified by means of license numbers and the vehicle’s registration, with the leasing companies not being able to switch vehicles, other than in cases of deficiencies. The leased vehicles are used by the Company’s headquarters staff, marketing and salespersons and other employees whose employment agreements include an obligation of the Company to put a vehicle at their disposal.

Office leases

The Company leases offices in Ness-Ziona, Israel for a contractual period of up to five years under a few different contracts for different floors used for offices, labs and manufacturing facilities. The contractual periods of the aforesaid lease agreements end in September 2026, November 2026 and July 2027. The Company also leases offices in Tel Aviv, Israel, for a contractual period of five years, which ends in March 2027, offices in Waltham, Massachusetts, U.S., for a contractual period of seven years, which ends in February 2029, in Munich, Germany for a contractual period of five years, which ends in December 2027 and, in Alkmaar and Goirle, Netherlands for a contractual period of five and seven years, which end in April 2028 and April 2029, respectively.

The lease payments in some of the Company’s leases in Israel and Germany are linked to the local consumer price indexes known on the lease’s date of inception.

The Company exited their previous U.S. headquarters at 300 5th Avenue, Waltham, Massachusetts and sublet the facility leading to a non-cash, pre-tax and after-tax impairment charge of $1.5 million recorded in the second quarter of 2025. The Company partially impaired an abandoned portion of the Markforged 60 Tower headquarters in Waltham, Massachusetts resulting in a non-cash, pre-tax and after-tax impairment charge of $5.7 million related to the operating lease right-of-use (“ROU”) asset recorded in the third quarter of 2025. The Company is currently seeking a sublease for this space.