9. Leases

The Company leases facilities for its fabrication, lab and office space, and equipment under its various lease agreements.

The Company’s leases include fixed lease payments which may include escalation terms based on a fixed percentage or may vary based on an inflation index or other market adjustments. Escalations resulting from changes in inflation indices and market adjustments, as well as other lease costs that depend on the use of the underlying asset, are not considered lease payments when calculating the lease liability or ROU asset. Instead, such payments are accounted for as variable lease cost when the condition that triggers the variable payment becomes probable. Variable lease cost includes contingent rent payments for office space based on the percentage occupied by the Company in addition to common area charges and other charges that are variable in nature.

Summary of Lease Cost

The components of lease cost under ASC 842 are as follows for the below periods (in thousands):

Supplemental disclosure of cash flow information related to leases is as follows for the below periods (in thousands):

The weighted-average remaining lease term and discount rate were as follows for the below periods:

The following table summarizes the minimum lease payments of the Company’s operating and finance lease liabilities as of June 30, 2026 (in thousands):

In December 2024, the Company executed a 3-year lease of equipment expected to commence in 2026 with expected future payments of approximately $1.3 million. As of June 30, 2026, the lease has not yet commenced.

11. Leases

The Company leases facilities for its fab, lab and office space, and equipment under its various lease agreements.

The Company’s leases include fixed lease payments which may include escalation terms based on a fixed percentage or may vary based on an inflation index or other market adjustments. Escalations resulting from changes in inflation indices and market adjustments, as well as other lease costs that depend on the use of the underlying asset, are not considered lease payments when calculating the lease liability or ROU asset. Instead, such payments are accounted for as variable lease cost when the condition that triggers the variable payment becomes probable. Variable lease cost includes contingent rent payments for office space based on the percentage occupied by the Company in addition to common area charges and other charges that are variable in nature.

Summary of Lease Cost

The components of lease cost under ASC 842 are as follows for the below periods (in thousands):

Supplemental disclosure of cash flow information related to leases are as follows for the below periods (in thousands):

The weighted-average remaining lease term and discount rate were as follows for the below periods:

The following table summarizes the minimum lease payments of the Company’s operating and finance lease liabilities as of December 31, 2025 (in thousands):

In December 2024, the Company executed a 3-year lease of equipment expecting to commence in 2026 with expected future payments of approximately $1.3 million.