| Leases |
Note
8. Leases
The
Company leases its office and manufacturing facilities under four non-cancellable operating leases, including options to extend, which
expire between 2025 to 2032. The agreements include a provision for renewal at the then prevailing market rate for terms specified in
each lease.
Total
right-of-use (“ROU”) assets and lease liabilities are as follows:
Schedule
of Right-of-use Assets and Lease Liabilities
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2025 |
|
|
2024 |
|
| |
|
(In thousands) |
|
| Right-of-use assets: |
|
|
|
|
|
|
|
|
| Net book value (Other assets) |
|
$ |
7,838 |
|
|
$ |
8,774 |
|
| Operating lease liabilities: |
|
|
|
|
|
|
|
|
| Current (Accrued expense and other current liabilities) |
|
$ |
1,569 |
|
|
$ |
1,612 |
|
| Noncurrent (Other noncurrent liabilities) |
|
|
7,583 |
|
|
|
8,361 |
|
|
Total operating lease liabilities |
|
|
9,152 |
|
|
|
9,973 |
|
| Financing lease liabilities: |
|
|
|
|
|
|
|
|
| Current (Accrued expense and other current liabilities) |
|
$ |
149 |
|
|
$ |
142 |
|
| Noncurrent (Other noncurrent liabilities) |
|
|
37 |
|
|
|
114 |
|
|
Total financing lease liabilities |
|
$ |
186 |
|
|
$ |
256 |
|
| Total lease liabilities |
|
$ |
9,338 |
|
|
$ |
10,229 |
|
There
were no impairments recorded related to these assets as of June 30, 2025 and December 31, 2024.
Information
about lease-related balances were as follows:
Schedule
of Lease-related Balances
| |
|
2025 |
|
|
2024 |
|
|
|
|
2024 |
|
| |
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
| |
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| |
|
(In thousands, except years and percentages) |
|
|
(In thousands, except years and percentages) |
|
| Operating lease expense |
|
$ |
578 |
|
|
$ |
746 |
|
|
$ |
1,156 |
|
|
$ |
1,492 |
|
| Financing lease expense |
|
|
40 |
|
|
|
43 |
|
|
|
80 |
|
|
|
92 |
|
| Short-term lease expense |
|
|
45 |
|
|
|
40 |
|
|
|
86 |
|
|
|
108 |
|
| Total lease expense |
|
$ |
663 |
|
|
$ |
829 |
|
|
$ |
1,322 |
|
|
$ |
1,692 |
|
| Cash paid for leases |
|
$ |
595 |
|
|
$ |
752 |
|
|
$ |
1,190 |
|
|
$ |
1,498 |
|
| Weighted – average remaining lease term – operating leases (years) |
|
|
6.8 |
|
|
|
7.5 |
|
|
|
6.8 |
|
|
|
7.5 |
|
| Weighted – average discount rate – operating leases |
|
|
9.0 |
% |
|
|
8.9 |
% |
|
|
9.0 |
% |
|
|
8.9 |
% |
Maturity
of operating lease liabilities as of June 30, 2025 are as follows:
Schedule
of Maturity of Operating Lease Liabilities
| Year Ending December 31, |
|
(In thousands) |
|
| Remainder of 2025 |
|
$ |
1,200 |
|
| 2026 |
|
|
2,430 |
|
| 2027 |
|
|
2,400 |
|
| 2028 |
|
|
2,490 |
|
| 2029 |
|
|
2,585 |
|
| Thereafter |
|
|
6,195 |
|
| Total operating lease payments |
|
$ |
17,300 |
|
| Less portion representing imputed interest |
|
|
(8,148 |
) |
| Total operating lease liabilities |
|
$ |
9,152 |
|
| Less current portion |
|
|
1,569 |
|
| Long-term portion |
|
$ |
7,583 |
|
|