v3.26.1
LEASES
 6 Months Ended
Jun. 30, 2026
Leases [Abstract]  
LEASES LEASES
The Company has both real estate leases and equipment leases. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the second quarter of 2026: (1) 1-2 years, 4.96% (2) 3-4 years, 5.55% (3) 5-9 years, 5.89% and (4) 10+ years, 6.61%.
Right of use assets and lease liabilities at June 30, 2026 and December 31, 2025 are summarized as follows:

Right of use assetsJune 30, 2026December 31, 2025
Operating leases$12,703 $14,672 
Finance leases1,417 1,520 
Total$14,120 $16,192 

Lease liabilities - currentJune 30, 2026December 31, 2025
Operating leases$3,172 $3,614 
Finance leases210 205 
Total$3,382 $3,819 

Lease liabilities - non-currentJune 30, 2026December 31, 2025
Operating leases$9,895 $11,324 
Finance leases1,438 1,544 
Total$11,333 $12,868 
For the three and six months ended June 30, 2026 and 2025, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Lease Cost
Operating lease cost$1,260 $1,368 $2,562 $2,693 
Finance lease cost
Amortization of ROU asset53 52 105 104 
Interest on lease liabilities21 24 43 48 
Total finance lease74 76 148 152 
Total lease cost$1,334 $1,444 $2,710 $2,845 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$1,270 $1,385 $2,573 $2,742 
Operating cash flows from finance leases21 24 43 48 
Financing cash flows from finance leases51 48 102 97 
$1,342 $1,457 $2,718 $2,887 
Right-of-use assets obtained in exchange for new operating lease liabilities, net of right-of-use assets disposed$87 $655 $220 $1,857 
Weighted-average remaining lease term - operating leases5.57 years8.76 years5.57 years8.76 years
Weighted-average remaining lease term - finance leases6.75 years7.86 years6.75 years7.86 years
Weighted-average discount rate - operating leases7.1 %7.6 %7.1 %7.6 %
Weighted-average discount rate - finance leases5.1 %5.1 %5.1 %5.1 %
Rent expense charged to operations under operating lease agreements for the three and six months ended June 30, 2026 aggregated to approximately $1,260 and $2,562, respectively, and $1,368 and $2,693 for the three and six months ended June 30, 2025, respectively.
Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at June 30, 2026 are as follows:

Year 
July 1, 2026 to December 31, 2026$2,405 
20273,734 
20282,944 
20292,521 
20302,065 
20311,826 
Thereafter2,539 
Total undiscounted lease payments18,034 
Less: Present value adjustment(3,319)
Present value of lease liabilities$14,715 
LEASES LEASES
The Company has both real estate leases and equipment leases. The Company developed four tranches of leases based on lease terms and these tranches reflect the composition of the current lease portfolio. The Company's borrowing history shows that interest rates of a term loan or a line of credit depend on the duration of the loan rather than the nature of the assets purchased by those funds. Based on this understanding, the Company elected to use a portfolio approach to discount rates, applying corporate rates to the tranches of leases based on lease terms. Based on the Company's risk rating, the Company applied the following discount rates for new leases entered into during the second quarter of 2026: (1) 1-2 years, 4.96% (2) 3-4 years, 5.55% (3) 5-9 years, 5.89% and (4) 10+ years, 6.61%.
Right of use assets and lease liabilities at June 30, 2026 and December 31, 2025 are summarized as follows:

Right of use assetsJune 30, 2026December 31, 2025
Operating leases$12,703 $14,672 
Finance leases1,417 1,520 
Total$14,120 $16,192 

Lease liabilities - currentJune 30, 2026December 31, 2025
Operating leases$3,172 $3,614 
Finance leases210 205 
Total$3,382 $3,819 

Lease liabilities - non-currentJune 30, 2026December 31, 2025
Operating leases$9,895 $11,324 
Finance leases1,438 1,544 
Total$11,333 $12,868 
For the three and six months ended June 30, 2026 and 2025, the Company's total lease costs were as follows, which included amounts recognized in earnings, amounts capitalized on the balance sheets, and the cash flows arising from lease transactions:
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Lease Cost
Operating lease cost$1,260 $1,368 $2,562 $2,693 
Finance lease cost
Amortization of ROU asset53 52 105 104 
Interest on lease liabilities21 24 43 48 
Total finance lease74 76 148 152 
Total lease cost$1,334 $1,444 $2,710 $2,845 
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$1,270 $1,385 $2,573 $2,742 
Operating cash flows from finance leases21 24 43 48 
Financing cash flows from finance leases51 48 102 97 
$1,342 $1,457 $2,718 $2,887 
Right-of-use assets obtained in exchange for new operating lease liabilities, net of right-of-use assets disposed$87 $655 $220 $1,857 
Weighted-average remaining lease term - operating leases5.57 years8.76 years5.57 years8.76 years
Weighted-average remaining lease term - finance leases6.75 years7.86 years6.75 years7.86 years
Weighted-average discount rate - operating leases7.1 %7.6 %7.1 %7.6 %
Weighted-average discount rate - finance leases5.1 %5.1 %5.1 %5.1 %
Rent expense charged to operations under operating lease agreements for the three and six months ended June 30, 2026 aggregated to approximately $1,260 and $2,562, respectively, and $1,368 and $2,693 for the three and six months ended June 30, 2025, respectively.
Aggregate future minimum rental payments required under all non-cancelable operating and finance leases at June 30, 2026 are as follows:

Year 
July 1, 2026 to December 31, 2026$2,405 
20273,734 
20282,944 
20292,521 
20302,065 
20311,826 
Thereafter2,539 
Total undiscounted lease payments18,034 
Less: Present value adjustment(3,319)
Present value of lease liabilities$14,715