The Company enters into a variety of operating lease agreements through the normal course of its business, but primarily real estate leases to support its operations. The Company leases properties located in Portland, Maine, Lewiston, Maine, Gorham, Maine, Nashua, New Hampshire and Hamburg, Germany. The real estate lease agreements generally provide for fixed minimum rental payments and the payment of real estate taxes and insurance. The Company has lease terms that expire between November 2026 through February 2037.

Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional four to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options.

The Company also enters into leases for equipment and service agreements, and other leases related to its manufacturing operations that are classified as finance leases that are not material.

The following table summarizes supplemental balance sheet information related to the Company’s operating leases (in thousands):


	July 3, 2026			December 31, 2025
Operating lease right-of-use assets	$	11,777		$	10,586

Operating lease liabilities, current	$	956		$	875
Operating lease liabilities, non-current	11,407			10,247
Total operating lease liabilities	$	12,363		$	11,122

Weighted-average remaining term	9.4 years			9.6 years
Weighted-average discount rate	10.7		%	10.9		%

For the three months ended July 3, 2026 and June 30, 2025, the Company recognized approximately $0.6 million and $0.5 million, respectively. For the six months ended July 3, 2026 and June 30, 2025, the Company recognized approximately $1.0 million of lease expense. These expenses were recognized within cost of goods sold on the consolidated statements of operations. Variable and short-term lease expense recognized during the three and six months ended July 3, 2026 and June 30, 2025 were not material.


Fiscal Year	Amount
Remaining 2026	$	1,069
2027	2,254
2028	2,253
2029	2,028
2030	1,790
Thereafter	10,667
Total operating lease payments	20,061
Less: Imputed interest	(7,698)
Present value of future lease payments	$	12,363


	Three Months Ended				Six Months Ended
	July 3, 2026		June 30, 2025		July 3, 2026		June 30, 2025
Lease expense recognized for operating leases	$	618	$	520	$	1,048	$	1,046
Cash paid for amounts included in the measurement of operating lease liabilities	$	504	$	492	$	998	$	989

As of July 3, 2026 and December 31, 2025, the Company did not have any leases that had not yet commenced.