The Company has entered into operating leases to facilitate the expansion of its manufacturing, research and development, and selling, general and administrative activities. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when those events are reasonably certain to occur. The interest rate implicit in lease contracts is typically not readily determinable and as such the Company uses the appropriate incremental borrowing rate based on information available at the lease commencement date in determining the present value of the lease payments. Current lease agreements do not contain any residual value guarantees or material restrictive covenants. As of September 30, 2026, the Company did not have any finance leases and had one additional operating lease that had not yet commenced.

The following table presents the Company’s operating lease cost and supplemental cash flow information related to the Company’s operating leases (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Operating lease cost	$	1,163	$	1,024	$	3,529	$	2,883
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	870	$	4,270	$	870	$	4,979

The following table presents the Company’s operating lease right-of-use assets and liabilities (in thousands):


	September 30, 2026		December 31, 2025
Right-of-use assets	$	17,864	$	19,925
Short-term lease liabilities		5,098		4,752
Long-term lease liabilities		16,296		19,217

The following table presents weighted average assumptions used to compute the Company’s right-of-use assets and lease liabilities:


	September 30, 2026
Weighted average remaining lease term (in years)		4.6
Weighted average discount rate		3.8	%

As of September 30, 2026, current operating leases had remaining terms between two months and five years with options to extend the lease terms.

Undiscounted future minimum lease payments as of September 30, 2026, by year and in the aggregate, having non-cancelable lease terms in excess of one year were as follows (in thousands):


	Maturities of Operating Lease Liabilities
2026(1)	$	1,416
2027		5,583
2028		5,279
2029		3,829
2030		3,476
Thereafter		3,349
Total lease payments		22,932
Less: Imputed interest		(1,538	)
Present value of lease payments	$	21,394

(1)

Scheduled maturities of lease liabilities represent the period from October 1, 2026 to December 31, 2026.