Operating Leases

3 Months Ended

Mar. 31, 2026

Note 9. Operating Leases

The Company leases its facilities under operating leases which expire at various dates through 2030. Most of the Company’s leases include one or more options to renewal. The Company’s leases do not provide an implicit rate, and the rates implicit in our leases are not readily determinable. Therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease assets and liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease.

The table below reconciles the undiscounted future minimum lease payments under these operating leases to the total operating lease liabilities recognized on the consolidated balance sheet as of March 31, 2026 (in thousands):

Year
2026 (remaining nine months)	$	1,684
2027		2,275
2028		1,579
2029		665
2030		137
Total minimum payments		6,340
Less: imputed interest		(895	)
Present value of operating lease liabilities		5,445
Less: current portion included in other current liabilities		(1,767	)
Long-term operating lease liabilities	$	3,678

Other information related to operating lease liabilities consists of the following (in thousands):

	Three Months Ended
	March 31,
	2026		2025
Operating lease cost	$	445	$	171
Short term lease cost		17		10
Total Lease Cost	$	462	$	181

Cash payments for operating leases	$	449	$	171

	March 31, 2026			December 31, 2025
Weighted average remaining lease term in years		2.94			3.30
Weighted average discount rate		10.76	%		10.00	%