Note 7 - Leases

3 Months Ended

Mar. 31, 2026

7.	Leases

The Company has operating leases for manufacturing and upfit facilities, land and parking lots, warehousing space and certain equipment. The leases have remaining lease terms of less than one year to 14 years, some of which include options to extend the leases for up to 20 years. Such renewal options were not included in the determination of the lease term unless deemed reasonably certain of exercise. The discount rate used in measuring the lease liabilities is based on the Company’s interest rate on the term loan facility under its secured Agreement. Certain of the Company’s leases contain escalating rental payments based on an index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease Expense

The components of lease expense, which are included in Cost of sales and Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income, were as follows:

	*Three Months Ended March 31, 2026*		*Three Months Ended March 31, 2025*
Operating lease expense	$	3,503	$	3,269
Short term lease cost	$	131	$	123
Total lease cost	$	3,634	$	3,392

Cash Flow

Supplemental cash flow information related to leases is as follows:

	*Three Months Ended March 31, 2026*		*Three Months Ended March 31, 2025*

Cash paid for amounts included in the measurement of operating lease liabilities	$	3,197	$	3,060
Non-cash lease expense - right-of-use assets	$	2,333	$	2,056
Right-of-use assets obtained in exchange for operating lease obligations	$	4,415	$	163

Balance Sheet

Supplemental balance sheet information related to leases is as follows:

	*March 31, 2026*			*December 31, 2025*
Operating Leases
Operating lease right-of-use assets	$	71,058		$	68,972

Other current liabilities		7,234			7,154
Operating lease liabilities		62,443			60,134
Total operating lease liabilities	$	69,677		$	67,288

Weighted Average Remaining Lease Term
Operating leases (in months)		140			144

Weighted Average Discount Rate
Operating leases		7.02	%		7.10	%

Lease Maturities

Maturities of leases were as follows:

Year ending December 31,	*Operating Leases*
2026 (excluding the three months ended March 31, 2026)	$	9,022
2027		10,490
2028		9,273
2029		8,260
2030		7,319
Thereafter		59,172
Total Lease Payments		103,536
Less: imputed interest		(33,859	)
Total	$	69,677