Company: QLYS
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001107843-25-000017
Chunk: 154

Company: QUALYS, INC.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 154
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 periods through 2030. While under the Company's lease agreements the Company has options to extend its certain leases, the Company has not included renewal options in determining the lease terms for calculating its lease liabilities, as these options are not reasonably certain of being exercised. Lease expense was $4.2 million and $3.8 million for the three months ended March 31, 2025 and 2024, respectively.Supplemental cash flow information related to operating leases was as follows:Three Months EndedMarch 31,20252024(in thousands)Cash payments included in the measurement of lease liabilities$3,616 $3,621 Lease liabilities arising from obtaining right-of-use assets$3,226 $12,347 The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows:March 31,2025December 31,2024Weighted average remaining lease term (years)4.24.2Weighted average discount rate7.5 %7.4 %Maturities of the Company's operating lease liabilities as of March 31, 2025 are as follows:(in thousands)2025 (remaining nine months)$10,856 202613,554 202713,560 202810,339 20296,649 2030 and thereafter2,102 Total minimum lease payments57,060 Less: interest(8,417)Present value of net minimum lease payments$48,643 

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NOTE 8.                              Commitments and Contingencies

IndemnificationsThe Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's bylaws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications.The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors.

NOTE 9.