|
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:
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Right-of-use assets: |
|
|
|
|
|
|
Net book value (Other assets) |
|
$ |
8,308 |
|
|
$ |
8,774 |
|
Operating lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
1,590 |
|
|
$ |
1,612 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
7,968 |
|
|
|
8,361 |
|
|
|
|
9,558 |
|
|
|
9,973 |
|
Financing lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
146 |
|
|
$ |
142 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
76 |
|
|
|
114 |
|
|
|
$ |
222 |
|
|
$ |
256 |
|
Total lease liabilities |
|
$ |
9,780 |
|
|
$ |
10,229 |
|
There were no impairments recorded related to these assets as of March 31, 2025 and December 31, 2024.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands, except years and percentages) |
|
Operating lease expense |
|
$ |
578 |
|
|
$ |
733 |
|
Financing lease expense |
|
|
40 |
|
|
|
49 |
|
Short-term lease expense |
|
|
41 |
|
|
|
68 |
|
Total lease expense |
|
$ |
659 |
|
|
$ |
850 |
|
Cash paid for leases |
|
$ |
595 |
|
|
$ |
746 |
|
Weighted – average remaining lease term – operating
leases (years) |
|
|
6.9 |
|
|
|
7.6 |
|
Weighted – average discount rate – operating leases |
|
|
9.0 |
% |
|
|
8.9 |
% |
Maturity of operating lease liabilities as of March 31, 2025 are as follows:
|
|
|
|
|
Year Ending December 31, |
|
(In thousands) |
|
Remainder of 2025 |
|
$ |
1,794 |
|
2026 |
|
|
2,430 |
|
2027 |
|
|
2,400 |
|
2028 |
|
|
2,490 |
|
2029 |
|
|
2,585 |
|
Thereafter |
|
|
6,195 |
|
Total operating lease payments |
|
$ |
17,894 |
|
Less portion representing imputed interest |
|
|
(8,336 |
) |
Total operating lease liabilities |
|
$ |
9,558 |
|
Less current portion |
|
|
1,590 |
|
Long-term portion |
|
$ |
7,968 |
|
|