Commitments and Contingencies

3 Months Ended

Mar. 31, 2026

5. Commitments and Contingencies

Leases

Operating leases consist of fabrication, lab, and office space expiring at various dates through 2029. Finance leases relate to a server lease expiring in February 2029. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The undiscounted future non-cancellable lease payments under the Company’s operating and finance leases were as follows (in thousands):


As of March 31, 2026	Amount
Remainder of 2026	$	1,123
2027	1,380
2028	595
2029	48
Total lease payments	3,146
Less: imputed interest	(148)
Total lease liabilities	2,998
Less: current portion of lease liabilities	(1,399)
Total lease liabilities, net of current portion	$	1,599

Other information related to the Company’s operating lease liabilities was as follows:


	March 31, 2026		December 31, 2025
Weighted-average remaining lease term (years)	2.21		2.44
Weighted-average discount rate	4.50	%	4.50	%

Other information related to the Company’s finance lease liabilities was as follows:


	March 31, 2026		December 31, 2025
Weighted-average remaining lease term (years)	2.92		3.16
Weighted-average discount rate	3.90	%	3.90	%

Legal Proceedings

From time to time, the Company may become involved in legal proceedings arising from the ordinary course of its business. Other than the patent infringement lawsuit disclosed below, management is currently not aware of any matters that would have a material adverse effect on the financial position, results of operations or cash flows of the Company.

Patent Infringement Lawsuit

On January 28, 2026, Avalanche Technology, Inc. filed a patent infringement lawsuit against the Company in the United States District Court for the District of Delaware, alleging infringement of certain patents. Avalanche Technology, Inc. also filed a complaint with the U.S. International Trade Commission seeking the institution of an investigation under Section 337 of the Tariff Act of 1930, as amended. The Company has retained a dedicated legal team and is vigorously defending itself against such claims. As of March 31, 2026, the Company has not recorded an accrual related to these matters because it currently estimates that while possible, a loss is not probable. Further, any possible range of loss cannot reasonably be estimated at this time.

EVERSPIN TECHNOLOGIES INC. 10-Q