Company: AIP
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001667011-25-000029
Chunk: 15

Company: Arteris, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 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. The term of these indemnification provisions is generally either for a term of years or perpetual, in each case beginning on the execution date of the agreement. The Company has also agreed to indemnify under indemnity agreements with its directors and officers, to the extent legally permissible, against liabilities incurred in connection with any action in which such individual may be involved by reason of such individual being or having been a director or officer, other than certain liabilities arising from willful misconduct of the individual.The Company has incurred no actual payment obligations from these above-noted indemnification provisions and director and officer indemnity agreements for the three and six months ended June 30, 2025 and 2024 and the unaudited condensed consolidated financial statements do not include liabilities for any potential indemnity-related obligations as of June 30, 2025 and December 31, 2024. Legal—The Company has been and will continue to be subject to legal proceedings and claims.In the normal course of business, the Company may receive inquiries or become involved in