The Company determines if an arrangement is a lease at inception of the contract. The Company has operating leases for buildings, primarily for office space, manufacturing, and distribution, as well as automobiles and printing equipment. As of March 31, 2026, the Company had the following building and facility leases capitalized on the balance sheet:


Location (leases)	Purpose	Expiration

Americas
Vaughan, Canada	Canada sales office and distribution	July 2026
Fox River Grove, IL (2)	RestoreFlow allografts business	December 2026
North Brunswick, NJ	Artegraft biologic business	October 2029
Burlington, MA (2)	Corporate headquarters and US distribution	December 2030
Billerica, MA	US distribution	December 2032
Burlington, MA (4)	Corporate headquarters and manufacturing	December 2034

Europe, Middle East and Africa
Milan, Italy	Italy sales office and distribution	September 2027
Madrid, Spain	Spain sales office and distribution	June 2029
Hereford, England	United Kingdom sales office and distribution	October 2029
Maisons-Alfort, France	France sales office and distribution	February 2030
Glattbrugg, Switzerland	Switzerland sales office and distribution	February 2030
Dublin, Ireland	Ireland sales office and distribution	September 2030
Sulzbach, Germany	European headquarters and distribution	June 2031

Asia Pacific
Bangkok, Thailand	Thailand sales office and distribution	August 2026
Seoul, Korea	Korea sales office and distribution	April 2027
Tokyo, Japan	Japan sales office and distribution	July 2027
Shanghai, China	China sales office and distribution	October 2027
Singapore	Asia Pacific headquarters and distribution	June 2028
Docklands, Australia	Australia sales office and distribution	April 2030
Ballarat, Australia	Supply facility	December 2030

Operating lease right-of-use (ROU) assets and operating lease liabilities are recognized based on the present value of the future lease minimum payments over the lease term at commencement date. Many of the lease agreements contain renewal or termination clauses that are factored into the determination of the lease term if it is reasonably certain that these options would be exercised. The Company recognizes lease expense for these leases on a straight-line basis over the lease term.

None of the Company’s noncancelable lease payments include non-lease components such as maintenance contracts. The Company generally reimburses the landlord for direct operating costs associated with the leased space. The Company has no subleases, and there are no residual value guarantees associated with, or restrictive covenants imposed by, any of its leases. The Company held no assets under finance leases as of March 31, 2026. The Company elected the package of practical expedients that allow it to omit leases with initial terms of 12 months or less from its balance sheet, which the Company expenses on a straight-line basis over the life of the lease.

The interest rate implicit in lease agreements is typically not readily determinable, and as such the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is defined as the interest the Company would pay to borrow on a collateralized basis.

Additional information with respect to the Company’s leases is as follows:


	Three months ended March 31,
	2026			2025
	(in thousands)
Lease cost
Operating lease cost	$	1,337		$	593
Short-term lease cost		30			27
Total lease cost	$	1,367		$	620

Weighted average remaining lease term - operating leases (in years)		6.1			6.8

Weighted average discount rate - operating leases		6.45	%		6.64	%

As of March 31, 2026, the minimum noncancelable operating lease rental commitments with initial or remaining terms of more than one year are as follows:


Remainder of 2026	$	3,578
Year ending December 31,
2027		4,109
2028		3,785
2029		3,654
2030		3,170
2031		2,435
Thereafter		5,427
Adjustment to net present value as of March 31, 2026		(5,210	)

Minimum noncancelable lease liability	$	20,948

On January 1, 2026, the Company commenced a new building lease agreement in Billerica, Massachusetts for U.S. distribution. The 34,400 square foot building lease has a primary term through December 31, 2032 with an option to renew the primary term for one additional 24-month period.