Company: AIP
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001628280-25-048977
Chunk: 14

Company: Arteris, Inc.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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2025 and 2024.

8.    LEASES

The Company leases its offices and data center hosting space at various locations under operating lease agreements expiring at various dates through 2034. Under the terms of these agreements, the Company also bears the costs for certain insurance, property tax, and maintenance. The terms of certain lease agreements provide for increasing rental payments at fixed intervals.Total operating lease related costs were as follows (in thousands):Three Months EndedSeptember 30,Nine Months EndedSeptember 30,2025202420252024Operating lease cost$386 $319 $1,131 $965 Short-term lease cost27 25 77 38 Total lease cost$413 $344 $1,208 $1,003 

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The weighted-average remaining term of the Company’s operating leases was 4.0 years and 3.9 years as of September 30, 2025 and December 31, 2024, respectively. The weighted-average discount rate used to measure the present value of the operating lease liabilities was 10.0% as of both September 30, 2025 and December 31, 2024. Cash payments made related to operating lease liabilities were $0.4 million and $0.3 million for the three months ended September 30, 2025 and 2024, respectively, and $1.2 million and $0.8 million for the nine months ended September 30, 2025 and 2024, respectively.Maturities of operating lease liabilities as of September 30, 2025 were as follows (in thousands):Fiscal year ending December 31,AmountRemainder of 2025$376 20261,597 20271,528 20281,109 2029411 Thereafter596 Total undiscounted cash flows5,617 Less: imputed interest(1,000)Present value of lease liabilities$4,617 Operating lease liabilities, current$1,186 Operating lease liabilities, noncurrent3,431 Total lease liabilities $4,617 

9.    BORROWINGS

Vendor financing arrangements—The Company has various vendor financing arrangements with extended payment terms on the purchase of software licenses and equipment. In order to determine the present value of the commitments, the Company used an imputed interest rate of 10.0%, which is an estimate based on the Company’s collateralized borrowing rate