6. Leases The Company has operating and finance leases for buildings and other assets such as vehicles and office equipment. The Company’s leases have remaining lease terms ranging from one year to four years. The tables below present financial information related to the Company’s leases. Supplemental balance sheets information related to leases as of June 30, 2026 and December 31, 2025 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Leases |
|
Classification |
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Assets |
|
|
|
|
|
|
|
|
Operating lease |
|
Operating lease right-of-use assets |
|
$ |
1,423 |
|
|
$ |
2,070 |
|
Finance lease |
|
Property, plant and equipment, net |
|
|
145 |
|
|
|
217 |
|
Total lease assets |
|
|
|
$ |
1,568 |
|
|
$ |
2,287 |
|
Liabilities |
|
|
|
|
|
|
|
|
Current |
|
|
|
|
|
|
|
|
Operating lease |
|
Operating lease liabilities |
|
$ |
1,144 |
|
|
$ |
1,427 |
|
Finance lease |
|
Other current liabilities |
|
|
106 |
|
|
|
130 |
|
Non-current |
|
|
|
|
|
|
|
|
Operating lease |
|
Non-current operating lease liabilities |
|
|
324 |
|
|
|
690 |
|
Finance lease |
|
Other non-current liabilities |
|
|
71 |
|
|
|
128 |
|
Total lease liabilities |
|
|
|
$ |
1,645 |
|
|
$ |
2,375 |
|
The following table presents the weighted average remaining lease term and discount rate:
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|
|
|
|
|
|
|
|
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
Weighted average remaining lease term |
|
|
|
|
|
|
Operating leases |
|
1.3 years |
|
|
1.5 years |
|
Finance leases |
|
1.7 years |
|
|
2.1 years |
|
Weighted average discount rate |
|
|
|
|
|
|
Operating leases |
|
|
6.0 |
% |
|
|
6.5 |
% |
Finance leases |
|
|
6.9 |
% |
|
|
7.0 |
% |
The components of lease cost from continuing operations included in the Company’s consolidated statements of operations, are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
Operating lease cost |
|
$ |
333 |
|
|
$ |
495 |
|
|
$ |
704 |
|
|
$ |
979 |
|
Finance lease cost |
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of right-of-use assets |
|
|
28 |
|
|
37 |
|
|
|
58 |
|
|
|
73 |
|
Interest on lease liabilities |
|
|
3 |
|
|
|
8 |
|
|
|
7 |
|
|
|
15 |
|
Total lease cost |
|
$ |
364 |
|
|
$ |
540 |
|
|
$ |
769 |
|
|
$ |
1,067 |
|
The above table does not include an immaterial cost of short-term leases for the three and six months ended June 30, 2026 and 2025. Other lease information associated with continuing operations is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
Cash paid for amounts included in the measurement of lease liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flows from operating leases |
|
$ |
343 |
|
|
$ |
470 |
|
|
$ |
701 |
|
|
$ |
1,092 |
|
Operating cash flows from finance leases |
|
|
3 |
|
|
|
8 |
|
|
|
7 |
|
|
|
15 |
|
Financing cash flows from finance leases |
|
|
32 |
|
|
|
40 |
|
|
|
66 |
|
|
|
78 |
|
Non-cash transaction amounts of lease liabilities arising from obtaining right-of-use assets were $263 thousand and $1,147 thousand for the six months ended June 30, 2026 and 2025, respectively. The aggregate future lease payments for operating and finance leases as of June 30, 2026 are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Operating Leases |
|
|
Finance Leases |
|
Remainder of 2026 |
|
$ |
677 |
|
|
$ |
63 |
|
2027 |
|
|
740 |
|
|
|
103 |
|
2028 |
|
|
92 |
|
|
|
20 |
|
2029 |
|
|
13 |
|
|
|
2 |
|
Total future lease payments |
|
|
1,522 |
|
|
|
188 |
|
Less: Imputed interest |
|
|
(53 |
) |
|
|
(11 |
) |
Present value of future payments |
|
$ |
1,469 |
|
|
$ |
177 |
|
|