| 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:
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
|
December 31, |
|
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
|
Right-of-use assets: |
|
|
|
|
|
|
Net book value (Other assets) |
|
$ |
7,946 |
|
|
$ |
8,774 |
|
Operating lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
1,930 |
|
|
$ |
1,612 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
7,444 |
|
|
|
8,361 |
|
Total operating lease liabilities |
|
|
9,374 |
|
|
|
9,973 |
|
Financing lease liabilities: |
|
|
|
|
|
|
Current (Accrued expense and other current liabilities) |
|
$ |
144 |
|
|
$ |
142 |
|
Noncurrent (Other noncurrent liabilities) |
|
|
6 |
|
|
|
114 |
|
Total financing lease liabilities |
|
$ |
150 |
|
|
$ |
256 |
|
Total lease liabilities |
|
$ |
9,524 |
|
|
$ |
10,229 |
|
There were no impairments recorded related to these assets as of September 30, 2025 and December 31, 2024.
Information about lease-related balances were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands, except years and percentages) |
|
|
(In thousands, except years and percentages) |
|
Operating lease expense |
|
$ |
739 |
|
|
$ |
687 |
|
|
$ |
1,895 |
|
|
$ |
2,179 |
|
Financing lease expense |
|
|
39 |
|
|
|
42 |
|
|
|
119 |
|
|
|
134 |
|
Short-term lease expense |
|
|
39 |
|
|
|
40 |
|
|
|
125 |
|
|
|
148 |
|
Total lease expense |
|
$ |
817 |
|
|
$ |
769 |
|
|
$ |
2,139 |
|
|
$ |
2,461 |
|
Cash paid for leases |
|
$ |
700 |
|
|
$ |
691 |
|
|
$ |
1,890 |
|
|
$ |
2,189 |
|
Weighted — average remaining lease term — operating
leases (years) |
|
|
6.1 |
|
|
|
7.2 |
|
|
|
6.1 |
|
|
|
7.2 |
|
Weighted — average discount rate — operating leases |
|
|
8.9 |
% |
|
|
8.9 |
% |
|
|
8.9 |
% |
|
|
8.9 |
% |
Maturity of operating lease liabilities as of September 30, 2025 are as follows:
|
|
|
|
|
Year Ending December 31, |
|
(In thousands) |
|
Remainder of 2025 |
|
$ |
709 |
|
2026 |
|
|
2,850 |
|
2027 |
|
|
2,540 |
|
2028 |
|
|
2,490 |
|
2029 |
|
|
2,585 |
|
Thereafter |
|
|
6,195 |
|
Total operating lease payments |
|
$ |
17,369 |
|
Less portion representing imputed interest |
|
|
(7,995 |
) |
Total operating lease liabilities |
|
$ |
9,374 |
|
Less current portion |
|
|
1,930 |
|
Long-term portion |
|
$ |
7,444 |
|
|