4. Leases

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

The Company’s operating lease ROU assets and operating lease liabilities primarily include leases for office and warehouse spaces used to conduct our business. Finance leases primarily consist of lab and processing equipment and motor vehicles used by the Company’s facilities’ operations.

The components of lease cost for the Company’s leases for the three and six months ended June 30, 2026, and 2025 were as follows (in thousands):

Schedule of Components of Lease Cost 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of June 30, 2026, were:

Schedule of Weighted Average Lease 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of June 30, 2025, were:

The following table reconciles the undiscounted cash flows for the operating and finance leases as of June 30, 2026, to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

Schedule of Operating and Finance Lease Liability Maturity 

Supplemental cash flow and other information related to our leases were as follows for the three and six months ended June 30, 2026, and 2025 (in thousands):

Schedule of Supplemental Cash Flow and Other Information Related to Leases