The Company has certain property leases, with former owners and members for facilities of the Company’s subsidiaries. Most of these leases are accounted for as finance leases except for facilities leased by AEC and a plane hangar leased by Systima, which are

accounted for as operating leases. Total lease payments amounted to $2.2 million and $2.9 million for the three months ended June 30, 2025 and 2024, respectively. Total lease payments amounted to $6.4 million and $5.3 million for the six months ended June 30, 2025 and 2024, respectively.

On a consolidated basis, lease activity for the three and six months ended June 30, 2025 and 2024 were as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
	(in thousands)
Finance lease expense
Amortization of ROU assets	$	1,131	$	1,611	$	3,424	$	3,124
Interest on lease liabilities		1,095		1,671		3,363		3,305
Operating lease expense		386		422		1,065		844
Total	$	2,612	$	3,704	$	7,852	$	7,273

Amortization of ROU assets are included in the depreciation and amortization expense line of the accompanying unaudited condensed consolidated statements of operations.

On a consolidated basis, supplemental cash flow information for the six months ended June 30, 2025 and 2024 were as follows:


	Six Months Ended June 30,
	2025			2024
Cash paid for amounts included in the measurement of lease liabilities	(in thousands except percent and year)
Operating cash flows from finance leases	$	3,371		$	3,305
Financing cash flows from finance leases	$	1,896		$	1,098
Operating cash flows from operating leases	$	1,083		$	867
ROU assets obtained in exchange for new finance lease liabilities	$	—		$	4,087
ROU assets obtained in exchange for new operating lease liabilities	$	1,342		$	—
Weighted-average remaining lease term in years for finance leases		13.47		n/a
Weighted-average remaining lease term in years for operating leases		5.64		n/a
Weighted-average discount rate for finance leases		8.37	%	n/a
Weighted-average discount rate for operating leases		9.60	%	n/a