| 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 | |
|