Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 259

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 259
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 year ending December 31,AmountRemainder of 2025$739 20261,570 20271,527 20281,109 2029411 Thereafter594 Total undiscounted cash flows5,950 Less: imputed interest(1,111)Present value of lease liabilities$4,839 Operating lease liabilities, current$1,106 Operating lease liabilities, noncurrent3,733 Total lease liabilities $4,839 

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.Expected cash flows related to vendor financing arrangements as of June 30, 2025 were as follows (in thousands):Fiscal year ending December 31,AmountRemainder of 2025$1,336 20261,038 2027297 Total undiscounted cash flows2,671 Less: Imputed interest(153)Present value of vendor financing arrangements$2,518 Vendor financing arrangements, current$1,955 Vendor financing arrangements, noncurrent563 $2,518 Interest expense from vendor financing arrangements was less than $0.1 million for both the three months ended June 30, 2025 and 2024, and $0.1 million for both the six months ended June 30, 2025 and 2024.

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10.    COMMITMENTS AND CONTINGENCIES

Letter of Credit—In conjunction with the execution of the operating lease for the Company’s headquarters facility, a letter of credit in the amount of $0.4 million was issued and outstanding as of both June 30, 2025 and December 31, 2024. No draws have been made under such letter of credit. Indemnifications—The Company often enters into limited indemnification provisions in license agreements in the ordinary course of the Company’s licensing business. Pursuant to these provisions, which are often inserted into license agreements in the semiconductor IP and software licensing industries, the Company agrees to indemnify, hold harmless, and reimburse the indemnified parties up to a capped amount for losses suffered or incurred by such indemnified parties due to third-party claims if such claims are determined to be caused by the Company.