Through the SkyWater acquisition the Company began consolidating a real estate variable interest entity that owns the Company’s Minnesota facility. The VIE was established for the purpose of holding real estate and facilitating real estate transactions. This included facilitating the purchase of the land and building of the Company’s Minnesota facility with proceeds from a bank loan (refer to Note 13) and managing the leaseback of the land and building to the Company. Management determined that the real estate entity meets the definition of a VIE and that the Company is its primary beneficiary. Accordingly, the Company consolidates the

VIE’s assets, liabilities, and results of operations, eliminates any transactions between the Company and the VIE, and records a noncontrolling interest for the economic interest in the VIE attributable to parties other than the Company’s common stock shareholders. The creditors of the VIE do not have recourse to the general credit of the Company.

The carrying amounts of the VIE’s assets and liabilities that are consolidated by the Company as of September 30, 2026, prior to the elimination of intercompany balances, include the following (in thousands):


		September 30,
	Classification	2026
Finance receivable
Long-term financing receivable	Other noncurrent assets	$	41,833
Total financing receivable			41,833
Debt
Current portion of long-term debt	Current portion of long-term debt		1,110
Long-term debt, less current portion and unamortized debt issuance costs	Long-term debt, less current portion		29,423
Total debt		$	30,533

Revenue and expenses that are consolidated by the Company related to the VIE for the three and nine months ended September 30, 2026, prior to the elimination of intercompany balances, are not material.

Management has also determined that the VIE meets the definition of a related party. The Company is in an agreement to lease the Minnesota land and building facility from the VIE. Future minimum lease commitments as of September 30, 2026 were as follows (in thousands):


	Future Minimum Lease Commitments
Year Ending December 31,
2026	$	1,330
2027		5,357
2028		5,464
2029		5,573
2030		5,685
Thereafter		61,150
Total lease payments	$	84,559
Less: imputed interest		(56,512	)
Total	$	28,047