The Company is party to several facility leases in South Africa and the U.S. for office, manufacturing and laboratory space. Dr. Gerdus Kemp, an officer of PET Labs and an employee of ASP UK, is the sole owner of a leased office and production facility in Pretoria, South Africa. During 2026, the Company has expanded its facility leases in South Africa and entered into a lease for office space in Dallas, Texas, which serves as its corporate headquarters. In conjunction with the acquisition of Renergen in January 2026, the Company is recognizing additional operating leases for its office space in South Africa. The Company also leases office and production space in Pretoria, South Africa and Cayman Islands that are accounted for as short-term leases.

Quantitative information regarding the Company’s operating lease liabilities is as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Operating Lease Cost
Operating lease cost	$	384		$	185		$	655		$	353
Other Information
Operating cash flows paid for amounts included in the measurement of lease liabilities	$	345		$	178		$	561		$	343
Operating lease liabilities arising from obtaining right-of- use assets	$	2,953		$	102		$	4,600		$	102
Weighted average remaining lease term (years)		17.08			3.56			17.08			3.56
Weighted average discount rate		11.28	%		9.49	%		11.28	%		9.49	%


	Operating Leases
Future Lease Payments
2026 (remaining six months)	$	742
2027		1,553
2028		1,259
2029		923
2030		808
Thereafter		9,347
Total lease payments	$	14,632
Less: imputed interest		(8,771	)
Total operating lease liabilities	$	5,861
Less current portion	$	(920	)
Operating lease liability - noncurrent	$	4,941

The Company records the expense from short-term leases as incurred. Lease expense from short-term leases was $95,000 and $32,000 for the three months ended June 30, 2026 and 2025, respectively. Lease expense from short-term leases was $157,000 and $64,000 for the six months ended June 30, 2026 and 2025, respectively.

The Company is party to several ongoing finance leases in South Africa for vehicles and equipment. Some of these finance leases include arrangements with variable interest rates indexed to the prime interest rate in South Africa. There was no variable interest expense for the three months ended June 30, 2026 and 2025. The Company elects to include finance lease right-of-use assets in property and equipment, net.

Quantitative information regarding the Company’s finance lease liabilities is as follows (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Finance Lease Cost
Interest on lease liabilities	$	19		$	23		$	41		$	45
Other Information
Operating cash flows paid for amounts included in the measurement of finance lease liabilities	$	38		$	32		$	82		$	62
Amortization of right-of-use assets	$	27		$	13		$	58		$	53
Weighted average remaining lease term (years)		3.2			4.0			3.2			4.0
Weighted average discount rate		13.3	%		13.1	%		13.3	%		13.1	%

Future lease payments under noncancelable finance lease liabilities are as follows as of June 30, 2026 (in thousands):


	Finance Leases
Future Lease Payments
2026 (remaining six months)	$	123
2027		239
2028		196
2029		76
2030		75
Thereafter		—
Total lease payments	$	709
Less: imputed interest		(146	)
Total lease liabilities	$	563
Less current portion	$	(178	)
Finance lease liability - noncurrent	$	385

The Company leases certain equipment to customers under sales-type leases and records the leases within lease receivables on the Company’s condensed consolidated balance sheets and records interest income in the Company’s condensed consolidated statements of operations and comprehensive loss. The Company does not have significant variable lease payments or residual value guarantees associated with these leases. Credit risk is monitored regularly, and no allowance for credit losses was recorded as of the reporting date.

The Company’s net investment in sales-type leases were comprised of the following (in thousands):


	June 30, 2026
Total undiscounted cash flows	$	8,932
Present value discount		(4,362	)
Net investment in sales-type leases	$	4,570
Less current portion	$	(526	)
Net investment in sales-type leases - noncurrent	$	4,044

The current portion of sales-type leases is included in prepaid and other current assets on the balance sheet.

Future minimum lease payments to be collected under sales-type leases, excluding lease payments that are not fixed and determinable, as of June 30, 2026 are as follows (in thousands):


	Sales-type Leases
Future Lease Payments To Be Collected
2026 (remaining six months)	$	552
2027		1,272
2028		1,272
2029		1,272
2030		1,163
Thereafter		3,401
Total undiscounted cash flows	$	8,932

Interest income recognized from sales-type leases during the three and six months ended June 30, 2026 was $0.2 million and $0.3 million respectively. Interest income recognized from sales-type leases during the three and six months ended June 30, 2025 was $22,000.