The Company has operating leases for office space and, to a much lesser extent, operating leases for equipment. The Company’s office leases are between terms of 1 year and 5 years. Rents usually increase annually in accordance with defined rent steps or are based on current year consumer price index adjustments. Some of the lease agreements contain one or more of the following provisions: tenant allowances, rent holidays, lease premiums, and rent escalation clauses. There are typically no purchase options, residual value guarantees or restrictive covenants. When renewal options exist, the Company generally does not deem them to be reasonably certain to be exercised, and therefore the amounts are not recognized as part of the lease liability nor the right of use asset. The Company has certain leases that have terms that are a year or less and are accounted on a straight-line basis over the term of the lease. The Company recognized $24 thousand and $38 thousand of lease expense in the three months ended March 27, 2026 and March 28, 2025, respectively, on these leases.

The components of lease expense were as follows for the three months ended March 27, 2026 (in thousands):


Operating lease cost	$	315

Total net lease costs	$	315

The weighted average remaining lease term is 2.4 years. The weighted average discount rate utilized is 6.0%. For the three months ended March 27, 2026, the Company paid $0.3 million from operating cash flows for its operating leases.

Future minimum lease commitments under non-cancellable operating leases as of March 27, 2026, were as follows (in thousands):


2026 (excluding the three months ended March 27, 2026)	$	921
2027		827
2028		429
2029		175
2030 and thereafter		-
Total lease payments		2,352
Less imputed interest		(201	)
Total	$	2,151

As of March 27, 2026, the Company does not have any additional material operating leases that have not yet commenced.