Company: AWRE
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0000950170-25-038714
Chunk: 128

Company: AWARE INC /MA/
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 128
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 and also provides a renewal option for up to two additional terms of five years each.The components of lease expense included in the consolidated statements of operations and comprehensive loss are as follows (in thousands):

        For the Year Ended December 31,

        2024

        2023

        Operating lease costs
         
        $
        733

        $
        733

       Supplemental balance sheet information related to the Company's operating lease was as follows (in thousands):

50

        As of December 31,

        2024

        2023

        Operating lease right-of-use assets
         
        $
        3,964

        $
        4,260

        Current portion, operating lease liabilities

        656

        637

        Operating lease liabilities, long term

        3,588

        3,838

        Total operating lease liabilities
         
        $
        4,244

        $
        4,475

        Weighted average remaining lease term (years)

        8.3

        9.3

        Weighted average incremental borrowing rate

        10.1
        %

        10.1
        %
       
       The discount rate implicit in the lease was not readily determinable, and as such, we engaged a third-party valuation specialist to calculate the incremental borrowing rate (“IBR”).  The IBR was determined as of the lease commencement date and was dependent on several factors including the amount of lease payments, our credit rating based on a collateralized borrowing, the lease term and the currency of the lease.Future minimum lease payments for operating leases with initial remaining terms in excess of one year as of December 31, 2024 are as follows: 

        2025
         
        $
        687

        2026

        708

        2027

        729

        2028

        751

        2029

        773

        Thereafter

        2,678

        Total lease payments

        6,326

        Less implied interest

        (2,082
        )

        Total operating lease liabilities
         
        $
        4,244

10.	COMMITMENTS AND CONTINGENT LIABILITIESLitigation - There are no material pending legal proceedings to which we are a party or to which any of our properties are subject which, either individually or in the aggregate, are expected to have a