The Company has entered into operating and financing leases primarily for real estate and vehicles. The Company will determine whether an arrangement is a lease at inception of the agreement. The operating leases have terms of one to ten years, and often include one or more options to renew. These renewal terms can extend the lease term from two to ten years and are included in the lease term when it is reasonably certain that the Company will exercise the option. The Company considers these options in determining the lease term used in establishing the Company’s right-of-use assets and lease obligations. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Because the rate implicit in each operating lease is not readily determinable, the Company uses its incremental borrowing rate to determine present value of the lease payments. The Company used the implicit rates within the finance leases.

Components of the Company’s lease costs were as follows (in thousands):


	For The Six Months Ended June 30,
	2026		2025
Operating lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations	$	697	$	778
Finance lease cost:
Amortization of assets, included in General & Administrative expenses on the Consolidated Statements of Operations		1,207		1,247
Interest on lease liabilities, included in Interest expense on the Consolidated Statements of Operations		300		355
Total finance lease cost	$	1,507	$	1,602
Variable lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations	$	326	$	582
Short-term lease cost, included in General & Administrative expenses on the Consolidated Statements of Operations	$	36	$	55

Supplemental balance sheet information related to the Company’s operating and financing leases were as follows (in thousands):



Operating Leases	June 30, 2026		December 31, 2025
Right of use assets	$	6,086	$	4,878
Lease liability	$	6,293	$	5,800
Finance Leases
Right of use assets	$	11,374	$	12,598
Lease liability	$	14,254	$	15,587

Weighted-average remaining lease term and discount rate for the Company’s operating and financing leases for the periods presented below were as follows:


Weighted-average remaining lease term	June 30, 2026			December 31, 2025
Operating lease		8.05	yrs.		2.10	yrs.
Finance lease		4.75	yrs.		5.22	yrs.
Weighted-average discount rate
Operating lease		6.17	%		5.33	%
Finance lease		4.1	%		4.12	%

Maturities of lease liabilities by fiscal year for the Company’s operating and financing leases were as follows (in thousands):


	Financing Lease		Operating Lease
2026 - remaining	$	1,580	$	631
2027		3,190		1,241
2028		3,270		1,272
2029		3,351		1,182
2030		3,436		466
2031 and thereafter		864		3,392
Total lease payments		15,691		8,184
Less: imputed interest		1,437		1,891
Present value of lease liabilities	$	14,254	$	6,293