We lease office and warehouse space in various locations, including in the United States, India and Australia. Additionally, we lease space for an applications laboratory in Austin, Texas and research and development facilities in both Seguin, Texas and India. We also sub-lease the Alpha Steel facility. Apart from Alpha Steel, the remainder of our manufacturing is outsourced to contract manufacturing partners, and we currently do not own or lease any of those outsourced manufacturing facilities.

Our expense for our operating leases consisted of the following:


	Three months ended June 30,				Six months ended June 30,
(in thousands)	2026		2025		2026		2025
Operating lease cost	$	272	$	267	$	528	$	594
Short-term lease cost		287		82		570		148
Total lease cost	$	559	$	349	$	1,098	$	742

Reported in:
Cost of revenue	$	412	$	188	$	861	$	371
Research and development		37		26		56		33
Selling and marketing		9		20		31		47
General and administrative		101		115		150		291
Total lease cost	$	559	$	349	$	1,098	$	742

Future remaining operating lease payment obligations were as follows:


(in thousands)	June 30, 2026
Remainder of 2026	$	376
2027		731
2028		351
2029		322
2030		299
Thereafter		69
Total lease payments		2,148
Less: imputed interest		(520	)
Present value of operating lease liabilities	$	1,628

Current portion of operating lease liability	$	529
Operating lease liability, net of current portion		1,099
Present value of operating lease liabilities	$	1,628