Leases

6 Months Ended

Jun. 30, 2025

Note 11 – Leases

The Company leases its facilities and certain equipment. Fixed rent for the Company’s facilities escalates each year, and the Company is responsible for a portion of the landlords’ operating expenses such as property tax, insurance, and common area maintenance.

The Company’s facility in Louisville, Colorado is under a noncancelable operating lease with a maturity date in December 2029. In 2022, the Company amended this operating lease to incorporate a prior subleased space into the base lease and extend the term of the lease. In 2024, the Company amended this operating lease to incorporate additional space and further extend the term of the lease. The Company has the right to renew this operating lease for an additional five-year period.

On September 1, 2021, the Company entered into an industrial operating lease agreement for its facility in Thornton, Colorado, with the initial term through March 31, 2029. Under this operating lease, the Company has one option to renew for five years, which has been included in the calculation of lease liabilities and right-of-use assets as the exercise of the option is reasonably certain. As the renewal rent has not been negotiated, the Company used an estimated rent rate which approximated the fair market rent at adoption of ASC 842 on January 1, 2022 for the extension period.

The Company has certain equipment leases classified as finance leases as of June 30, 2025. In the Condensed Consolidated Balance Sheets, the Company records its right-of-use finance lease assets, net within Other assets, records its short-term finance lease liabilities within Accounts payable and other accrued liabilities, and records its long-term finance lease liabilities within Other liabilities.

The Company’s leases do not have any contingent rent payments and do not contain residual value guarantees.

The components of lease expense are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Finance lease costs:
Amortization of right-of-use assets	$	199	$	58	$	303	$	116
Interest on lease liabilities		7		12		15		26
Operating lease costs		376		290		752		580
Total lease expense	$	582	$	360	$	1,070	$	722

The components of cash flow information related to leases are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating outgoing cash flows – finance leases	$	7	$	13	$	15	$	27
Financing outgoing cash flows – finance leases		82		94		165		186
Operating outgoing cash flows – operating leases		338		292		669		584
Right-of-use assets obtained in exchange for new, modified, and remeasured finance lease liabilities:		—		—		(1)		—
Right-of-use assets obtained in exchange for new, modified, and remeasured operating lease liabilities:		—		—		15		—

The supplemental balance sheet information related to leases are as follows:


	June 30, 2025
Finance lease
Weighted-average remaining lease term – finance leases (in years)	2.0
Weighted-average discount rate – finance leases	6.9	%
Operating lease
Weighted-average remaining lease term – operating leases (in years)	7.5
Weighted-average discount rate – operating leases	6.4	%

As of June 30, 2025, future minimum payments during the next five years and thereafter are as follows:


Fiscal year	Finance Lease		Operating Lease
2025 (remaining six months)		125		682
2026		179		1,403
2027		85		1,448
2028		16		1,494
2029		—		1,548
2030		—		903
Thereafter		—		3,133
Total		405		10,611
Less present value discount		(24)		(2,193)
Total lease liabilities	$	381	$	8,418