Company: QLYS
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001107843-25-000038
Chunk: 208

Company: QUALYS, INC.
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 8
Chunk 208
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, 2025, the Company entered into a second amendment (the "Amendment") to early renew the lease of its headquarters in Foster City, California, which was scheduled to expire in April 2028. The Amendment, effective May 1, 2025, modifies the Company's existing lease payments and extends the lease terms through April 30, 2034 with an aggregate base rent of $30.4 million, payable in monthly installments with escalating rent payments over the term of the lease.Supplemental cash flow information related to operating leases was as follows:Nine Months EndedSeptember 30,20252024(in thousands)Cash payments included in the measurement of lease liabilities$9,413 $10,665 Lease liabilities arising from obtaining right-of-use assets$14,559 $28,157 The weighted average remaining lease term and the weighted average discount rate of the Company's operating leases were as follows:September 30,2025December 31,2024Weighted average remaining lease term (years)6.04.2Weighted average discount rate8.0%7.4%

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Maturities of the Company's operating lease liabilities as of September 30, 2025 are as follows:(in thousands)2025 (remaining three months)$2,145 202612,221 202712,749 202812,576 202910,739 2030 and thereafter18,812 Total minimum lease payments69,242 Less: interest(14,633)Present value of net minimum lease payments$54,609 

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