4. Leases The Company has operating and finance leases for office space, lab space, machining and certain equipment with varying expiration dates through 2035. Leases are categorized at their commencement date, which is the date the Company takes possession or control of the underlying asset. Certain of the operating leases include renewal options ranging from three to ten years, which are not recognized as part of the right-of-use assets as the Company is not reasonably certain that the options will be exercised. Lease costs for operating leases are as follows (finance lease costs were not material for the periods presented):
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Operating lease cost |
|
$ |
1,588 |
|
|
$ |
1,859 |
|
Variable lease cost |
|
|
889 |
|
|
|
695 |
|
Total lease cost |
|
$ |
2,477 |
|
|
$ |
2,554 |
|
The following table summarizes the Company's lease term and discount rate assumptions:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2025 |
|
|
2024 |
|
Operating leases |
|
|
|
|
|
|
Weighted-average remaining lease term (years) |
|
|
|
|
|
|
Finance leases |
|
|
6.0 |
|
|
|
— |
|
Operating leases |
|
|
7.6 |
|
|
|
8.3 |
|
Weighted-average discount rate: |
|
|
|
|
|
|
Finance leases |
|
|
10.8 |
% |
|
|
— |
|
Operating leases |
|
|
5.9 |
% |
|
|
5.4 |
% |
Supplemental balance sheet information related to leases:
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Balance Sheet Location |
|
2025 |
|
|
2024 |
|
Assets |
|
|
|
|
|
|
|
Finance lease right-of-use assets |
Property and equipment, net |
|
$ |
987 |
|
|
$ |
— |
|
Operating lease right-of-use assets |
Operating lease assets |
|
|
8,645 |
|
|
|
8,841 |
|
Liabilities |
|
|
|
|
|
|
|
Financing lease liabilities (current) |
Accrued liabilities |
|
|
166 |
|
|
|
— |
|
Operating lease liabilities (current) |
Current operating lease liabilities |
|
|
1,058 |
|
|
|
1,079 |
|
Financing lease liabilities (non-current) |
Other non-current liabilities |
|
|
761 |
|
|
|
— |
|
Operating lease liabilities (non-current) |
Operating lease liabilities |
|
|
9,725 |
|
|
|
9,957 |
|
Supplemental cash flow and other information related to leases:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
(In thousands) |
|
2025 |
|
|
2024 |
|
Cash paid for amounts included in measurement of liabilities: |
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
1,631 |
|
|
$ |
1,968 |
|
Undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year, as of December 31, 2025 are as follows:
|
|
|
|
|
|
|
|
|
(In thousands) |
|
Finance Leases |
|
|
Operating Leases |
|
2026 |
|
$ |
251 |
|
|
$ |
1,630 |
|
2027 |
|
|
238 |
|
|
|
1,676 |
|
2028 |
|
|
191 |
|
|
|
1,707 |
|
2029 |
|
|
168 |
|
|
|
1,733 |
|
2030 |
|
|
167 |
|
|
|
1,780 |
|
2031 and thereafter |
|
|
196 |
|
|
|
4,847 |
|
Total lease payments |
|
|
1,211 |
|
|
|
13,373 |
|
Less interest |
|
|
284 |
|
|
|
2,590 |
|
Present value of lease liabilities |
|
$ |
927 |
|
|
$ |
10,783 |
|
|