The Company determines if a contract is or contains a lease at inception. The Company leases certain office, manufacturing, and warehouse facilities and equipment under operating leases, in addition to land on which certain office and manufacturing facilities reside. These operating leases expire from fiscal year 2027 to 2056.

Operating lease costs in fiscal years 2026, 2025, and 2024 were $2.9 million, $1.5 million, and $1.9 million, respectively. During fiscal year 2025, the Company executed a lease for a facility to expand our medical CDMO footprint with the lease commencing in June 2025, including obtaining $10.6 million operating right-of-use assets in exchange for operating lease liabilities. During fiscal year 2026, the Company received the $4.6 million tenant allowance associated with the Indiana manufacturing facility lease, which increased the operating lease liability from June 30, 2025.

The lease assets and liabilities, which exclude leases with terms of 12 months or less, as of June 30, 2026 and 2025, were as follows:


(Amounts in Thousands)	2026			2025
Operating lease right-of-use assets (included in Other Assets)	$	10,933		$	11,779
Operating lease liability, current (included in Accrued expenses)	2,338			$	520
Operating lease liability, noncurrent (included in Other long-term liabilities)	$	14,532		$	11,386
Weighted average remaining lease term in years - operating leases	9.4			9.6
Weighted average discount rate - operating leases	5.3		%	5.9		%

Cash payments for operating leases included in the measurement of lease liabilities in fiscal years 2026, 2025, and 2024 were $1.1 million, $0.7 million, and $1.4 million, respectively, and were included in Cash Flows from Operating Activities in the Consolidated Statements of Cash Flows.


(Amounts in Thousands)
2027	$	2,392
2028	2,110
2029	2,059
2030	2,030
2031	2,060
Thereafter	10,826
Total undiscounted lease payments	$	21,477

Less: imputed interest	4,607
Present value of lease liabilities	$	16,870