The Company leases office, laboratory, warehouse and fabrication space in Massachusetts, Rhode Island and Monterrey, Mexico under operating leases. Under these agreements, the Company is obligated to pay annual rent, real estate taxes, and certain other operating expenses. The Company also leases equipment under operating and finance leases. The Company’s leases expire at various dates through 2034.

Maturities of operating and finance lease liabilities as of June 30, 2026 are as follows:


Year	Operating Leases			Finance Leases
	(In thousands)
2026 (excluding the six months ended June 30, 2026)		2,828			1,238
2027		5,018			2,881
2028		4,929			370
2029		4,484			152
2030		4,428			105
Thereafter		11,093			-
Total lease payments		32,780			4,746
Less imputed interest		(10,285	)		(595	)
Total lease liabilities	$	22,495		$	4,151

The Company incurred operating lease costs of $3.0 million and $3.2 million during the six months ended June 30, 2026 and 2025, respectively. Cash payments related to operating lease liabilities were $3.0 million and $3.1 million during the six months ended June 30, 2026 and 2025, respectively.

The Company incurred finance lease costs of $0.7 million and $0.5 million during the six months ended June 30, 2026 and 2025, respectively. Cash payments related to finance lease liabilities were $1.1 million and $0.9 million during the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, the weighted average remaining lease term for operating leases was 6.5 years and the weighted average discount rate for operating leases was 12.1%.

As of June 30, 2026, the weighted average remaining lease term for finance leases was 2.3 years and the weighted average discount rate for finance leases was 10.1%.

In January and September 2024, the Company entered into sale and leaseback arrangements, pursuant to which the Company sold certain equipment to an equipment leasing company for one-time cash payments of $5.0 million and $10.0 million, respectively, leased back such equipment from the leasing company. The transactions were considered as failed sale and leaseback transactions and, accordingly, were accounted for as financing transactions. The Company did not recognize a gain on any of the proceeds received from the lessor that contractually constitute payments to acquire the assets subject to these arrangements. Instead, the sale proceeds received were accounted for as finance obligations. The monthly lease rents will be paid over the term of three years and will be allocated between interest expense and principal repayment of the financial liability.

The outstanding finance obligation balance as of June 30, 2026 was $7.3 million. Maturities of finance obligations for sale and leaseback at June 30, 2026 are as follows:


Year	Finance Obligation
	(In thousands)
2026 (excluding the six months ended June 30, 2026)		2,801
2027		5,279
Total lease payments		8,080
Less imputed interest		(814	)
Total lease liabilities	$	7,266