The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2034. The Company’s primary operating lease commitments as of June 30, 2026, related to the Company’s manufacturing facilities in Valdosta, Georgia and Nogales, Arizona, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.

As of June 30, 2026, the Company had operating lease right-of-use assets of $7,504,000 and operating lease liabilities of $7,621,000. As of June 30, 2026, we did not have any finance leases recorded on the Company’s consolidated balance sheet. Operating lease expense was approximately $762,000 during the six months ended June 30, 2026.

The aggregate future minimum lease payments and reconciliation to total lease liabilities as of June 30, 2026 were as follows:

As of June 30, 2026, the weighted average remaining lease term of the Company’s operating leases was 9.01 years. During the six months ended June 30, 2026, the weighted average discount rate with respect to these leases was 7.0%.