The Company has operating and finance leases for facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company does not combine lease and non-lease components in the recognition of lease expense.

As of June 30, 2026 the Company held five leases for office, manufacturing and warehouse facilities in Aliso Viejo, California. The five leases are for approximately 150,000 square feet in the aggregate and expire January 31, 2031. For one such operating lease, the lessor provided $1.1 million in tenant allowances.

The following table presents the lease balances within the Condensed Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025 (in thousands):


		June 30,		December 31,
Leases	Classification	2026		2025

Assets
Operating	Operating leases right-of-use assets	$	9,491	$	9,959
Finance	Property and equipment, net		67		81
Total lease assets			9,558		10,040
Liabilities
Current
Operating	Lease liabilities		1,633		1,134
Finance	Lease liabilities		31		28
Noncurrent
Operating	Long-term lease liabilities		8,867		9,813
Finance	Long-term lease liabilities		49		65
Total lease liabilities		$	10,580	$	11,040

Maturities of the Company’s operating and finance lease liabilities as of June 30, 2026 were as follows (in thousands):


	Operating			Finance
Year Ended December 31,	Leases			Leases
2026 (remainder)	$	1,498		$	20
2027		3,107			40
2028		3,178			35
2029		3,267			—
2030 and thereafter		3,375			—
Total lease payments		14,425			95
Less: imputed interest		(3,925	)		(15	)
Total lease liabilities	$	10,500		$	80

The weighted average remaining lease term and weighted average discount rate used to determine lease liabilities related to the Company’s operating and finance leases as of June 30, 2026 and December 31, 2025 were:


	June 30,			December 31,
Lease Term and Discount Rate	2026			2025
Weighted average remaining lease term (years)
Operating leases		4.57			5.08
Finance leases		2.35			2.85
Weighted average discount rate
Operating leases		14.4	%		14.4	%
Finance leases		14.4	%		14.4	%