| Leases |
Note 8. Leases
The Company has six total leases for its office and manufacturing facility, and equipment leases under two non-cancellable operating leases and four non-cancellable finance leases, with expiration dates ranging from 2026 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:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Right-of-use assets: |
|
|
|
|
|
|
Net book value (Other assets) |
|
$ |
7,633 |
|
|
$ |
8,774 |
|
Operating lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
1,917 |
|
|
$ |
1,612 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
6,970 |
|
|
|
8,361 |
|
Total operating lease liabilities |
|
|
8,887 |
|
|
|
9,973 |
|
Financing lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
182 |
|
|
$ |
142 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
145 |
|
|
|
114 |
|
Total financing lease liabilities |
|
$ |
327 |
|
|
$ |
256 |
|
Total lease liabilities |
|
$ |
9,214 |
|
|
$ |
10,229 |
|
There were no impairments recorded related to these assets as of December 31, 2025 and 2024.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands, except years and percentages) |
|
Operating lease expense |
|
$ |
2,570 |
|
|
$ |
2,830 |
|
Financing lease expense |
|
|
157 |
|
|
|
175 |
|
Short-term lease expense |
|
|
195 |
|
|
|
195 |
|
Total lease expense |
|
$ |
2,922 |
|
|
$ |
3,200 |
|
Cash paid for leases |
|
$ |
2,599 |
|
|
$ |
2,850 |
|
Weighted — average remaining lease term — operating leases (years) |
|
|
6.3 |
|
|
|
7.3 |
|
Weighted — average discount rate — operating leases |
|
|
9.0 |
% |
|
|
9.0 |
% |
Weighted — average remaining lease term — financing leases (years) |
|
|
2.2 |
|
|
|
1.8 |
|
Weighted — average discount rate — financing leases |
|
|
5.6 |
% |
|
|
9.3 |
% |
Maturity of operating lease liabilities as of December 31, 2025 are as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ending December 31, |
|
Operating Leases |
|
Financing Leases |
|
Total |
|
|
|
(In thousands) |
|
2026 |
|
|
2,733 |
|
|
192 |
|
|
2,925 |
|
2027 |
|
|
2,540 |
|
|
75 |
|
|
2,615 |
|
2028 |
|
|
2,490 |
|
|
75 |
|
|
2,565 |
|
2029 |
|
|
2,585 |
|
|
— |
|
|
2,585 |
|
Thereafter |
|
|
6,194 |
|
|
— |
|
|
6,194 |
|
Total lease payments |
|
$ |
16,542 |
|
$ |
342 |
|
$ |
16,884 |
|
Less portion representing imputed interest |
|
|
(7,655 |
) |
|
(15 |
) |
|
(7,670 |
) |
Total lease liabilities |
|
$ |
8,887 |
|
$ |
327 |
|
$ |
9,214 |
|
Less current portion |
|
|
1,917 |
|
|
182 |
|
|
2,099 |
|
Long-term portion |
|
$ |
6,970 |
|
$ |
145 |
|
$ |
7,115 |
|
|