| 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. On April 16, 2026, our headquarters and facility lease was renewed for an additional nine years to July 31, 2035.
Total right-of-use (“ROU”) assets and lease liabilities are as follows:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2026 |
|
|
2025 |
|
|
|
(In thousands) |
|
Right-of-use assets: |
|
|
|
|
|
|
Net book value (Other assets) |
|
$ |
7,098 |
|
|
$ |
7,633 |
|
Operating lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
1,905 |
|
|
$ |
1,917 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
6,495 |
|
|
|
6,970 |
|
Total operating lease liabilities |
|
|
8,400 |
|
|
|
8,887 |
|
Financing lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
145 |
|
|
$ |
182 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
127 |
|
|
|
145 |
|
Total financing lease liabilities |
|
$ |
272 |
|
|
$ |
327 |
|
Total lease liabilities |
|
$ |
8,672 |
|
|
$ |
9,214 |
|
There were no impairments recorded related to these assets as of March 31, 2026 and December 31, 2025.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2026 |
|
|
2025 |
|
|
|
(In thousands, except years and percentages) |
|
Operating lease expense |
|
$ |
675 |
|
|
$ |
578 |
|
Financing lease expense |
|
|
57 |
|
|
|
40 |
|
Short-term lease expense |
|
|
348 |
|
|
|
41 |
|
Total lease expense |
|
$ |
1,080 |
|
|
$ |
659 |
|
Cash paid for leases |
|
$ |
740 |
|
|
$ |
595 |
|
Weighted — average remaining lease term — operating leases (years) |
|
|
5.7 |
|
|
|
6.9 |
|
Weighted — average discount rate — operating leases |
|
|
8.9 |
% |
|
|
9.0 |
% |
Weighted — average remaining lease term — financing leases (years) |
|
|
2.1 |
|
|
|
0.0 |
|
Weighted — average discount rate — financing leases |
|
|
5.2 |
% |
|
|
0.0 |
% |
Maturity of operating lease liabilities as of March 31, 2026 are as follows:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
|
Financing Leases |
|
|
Total |
|
Year Ending December 31, |
|
(In thousands) |
|
Remainder of 2026 |
|
$ |
2,052 |
|
|
$ |
133 |
|
|
$ |
2,185 |
|
2027 |
|
|
2,540 |
|
|
|
75 |
|
|
|
2,615 |
|
2028 |
|
|
2,490 |
|
|
|
75 |
|
|
|
2,565 |
|
2029 |
|
|
2,585 |
|
|
|
— |
|
|
|
2,585 |
|
2030 |
|
|
2,684 |
|
|
|
— |
|
|
|
2,684 |
|
Thereafter |
|
|
3,510 |
|
|
|
— |
|
|
|
3,510 |
|
Total operating lease payments |
|
$ |
15,861 |
|
|
$ |
283 |
|
|
$ |
16,144 |
|
Less portion representing imputed interest |
|
|
(7,461 |
) |
|
|
(11 |
) |
|
|
(7,472 |
) |
Total operating lease liabilities |
|
$ |
8,400 |
|
|
$ |
272 |
|
|
$ |
8,672 |
|
Less current portion |
|
|
1,905 |
|
|
|
145 |
|
|
|
2,050 |
|
Long-term portion |
|
$ |
6,495 |
|
|
$ |
127 |
|
|
$ |
6,622 |
|
|