The Company is party to several facility leases in South Africa and the U.S. for office, manufacturing and laboratory space. Dr. Gerdus Kemp, an officer of PET Labs and an employee of ASP UK, is the sole owner of a leased office and production facility in Pretoria, South Africa. In 2026, the Company has expanded its facility leases in South Africa. In conjunction with the acquisition of Renergen in January 2026, the Company is recognizing additional operating leases for its office space in South Africa. A lease for production space in Pretoria, South Africa is being accounted for as a short-term lease effective with the acquisition of 51% of PET Labs.

Quantitative information regarding the Company’s operating lease liabilities is as follows (in thousands):


	Three Months Ended March 31,
	2026			2025
Operating Lease Cost
Operating lease cost	$	369		$	168
Other Information
Operating cash flows paid for amounts included in the measurement of lease liabilities	$	314		$	165
Operating lease liabilities arising from obtaining right-of- use assets	$	1,673		$	—
Weighted average remaining lease term (years)		3.65			3.58
Weighted average discount rate		9.54	%		9.63	%

Future lease payments under noncancelable operating lease liabilities as of March 31, 2026 are as follows (in thousands):


	Operating Leases
Future Lease Payments
2026 (remaining nine months)	$	777
2027		1,094
2028		822
2029		520
2030		418
Thereafter		—
Total lease payments	$	3,631
Less: imputed interest		(588	)
Total operating lease liabilities	$	3,043
Less current portion	$	(789	)
Operating lease liability - noncurrent	$	2,254

The Company records the expense from short-term leases as incurred. Lease expense from short-term leases was $33,696 and $31,595 for the three months ended March 31, 2026 and 2025, respectively.

The Company is party to several ongoing finance leases in South Africa for vehicles and equipment. Some of these finance leases include arrangements with variable interest rates indexed to the prime interest rate in South Africa. There was no variable interest expense for the three months ended March 31, 2026 and 2025. The Company elects to include finance lease right-of-use assets in property and equipment, net.

Quantitative information regarding the Company’s finance lease liabilities is as follows (in thousands):


	Three Months Ended March 31,
	2026			2025
Finance Lease Cost
Interest on lease liabilities	$	23		$	22
Other Information
Operating cash flows paid for amounts included in the measurement of finance lease liabilities	$	44		$	30
Amortization of right-of-use assets	$	31		$	41
Weighted average remaining lease term (years)		3.4			4.2
Weighted average discount rate		13.2	%		13.0	%

Future lease payments under noncancelable finance lease liabilities are as follows as of March 31, 2026 (in thousands):


	Finance Leases
Future Lease Payments
2026 (remaining nine months)	$	176
2027		228
2028		188
2029		73
2030		70
Thereafter		—
Total lease payments	$	735
Less: imputed interest		(157	)
Total lease liabilities	$	578
Less current portion	$	(165	)
Finance lease liability - noncurrent	$	413

The Company leases certain equipment to customers under sales-type leases and records the leases within lease receivables on the Company’s condensed consolidated balance sheets and records interest income in the Company’s condensed consolidated statements of operations and comprehensive loss. The Company does not have significant variable lease payments or residual value guarantees associated with these leases. Credit risk is monitored regularly, and no allowance for credit losses was recorded as of the reporting date.

The Company’s net investment in sales-type leases were comprised of the following (in thousands):


	March 31, 2026
Total undiscounted cash flows	$	8,752
Present value discount		(4,401	)
Net investment in sales-type leases	$	4,351
Less current portion	$	(443	)
Net investment in sales-type leases - noncurrent	$	3,908

Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable, as of March 31, 2026 are as follows (in thousands):


	Sales-type Leases
Future Lease Payments To Be Collected
2026 (remaining nine months)	$	759
2027		1,211
2028		1,211
2029		1,211
2030		1,108
Thereafter		3,252
Total undiscounted cash flows	$	8,752

Interest income recognized from sales-type leases during the three months ended March 31, 2026 was $0.1 million. There was no interest income recognized from sales-type leases during the three months ended March 31, 2025.