The Company is lessee of office space and warehouses. Certain leases include renewal options and/or termination options, which are factored into the Company's determination of lease payments when appropriate.

Operating lease cost for the three months ended March 31, 2026 and 2025 was $904 thousand and $857 thousand, respectively, which excluded cost of short-term contracts. Short-term lease cost for the three months ended March 31, 2026 and 2025 was $16 thousand and $46 thousand, respectively.

As of March 31, 2026, the Company had operating lease liabilities of $16.8 million, including current portion of $2.8 million, which is presented under accrued expenses and other current liabilities on the consolidated balance sheet. The weighted average remaining lease term was 8.5 years and weighted average discount rate was 5.0%.


	Three Months Ended March 31, 2026
Cash payments for operating leases	$	775
Right-of-use assets obtained in exchange for new operating lease liabilities	658


	As of March 31, 2026
Nine-month period ending December 31, 2026	$	2,795
2027	3,063
2028	2,196
2029	1,756
2030	1,749
2031	1,749
Thereafter	7,144
Total future lease payments	$	20,452
Discount to present value	$	(3,649)
Present value of operating lease liabilities	$	16,803

For the three months ended March 31, 2026 and 2025, the Company recognized sales-type lease revenue of $46 thousand and $4.1 million respectively, which are included in products sales in the accompanying consolidated statements of operations. As of March 31, 2026, the Company recorded net investment in sales-type leases of $5.6 million including current portion in the amount of $3.8 million, which is presented in accounts receivable on the consolidated balance sheets.