LEASES

3 Months Ended

Mar. 31, 2025

As disclosed in “Note (2) Summary of Significant Accounting Policies; (k) Leases,” we account for our leases in accordance with the guidance in ASC 842. We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases that expire at various dates through 2032. Total operating lease and short-term lease costs for the three months ended March 31, 2025 and 2024, respectively, were as follows:


	Three Months Ended March 31,
(in thousands)	2025		2024
Operating lease cost	$	653	$	451
Short-term lease cost	4		3

The following is additional information about our leases as of March 31, 2025:


Range of remaining lease terms (in years)	0.3	to	6.9
Weighted average remaining lease term (in years)		5.6
Weighted average discount rate		6.7%

Maturities of lease liabilities as of March 31, 2025, were as follows:


(in thousands)
2025 (remainder)	$	1,977
2026	2,413
2027	2,249
2028	1,658
2029	1,555
Thereafter	2,622
Total lease payments	$	12,474
Less imputed interest	(1,822)
Total	$	10,652

Cash Flow Information

Total amortization of ROU assets was $0.6 million and $0.4 million for the three months ended March 31, 2025 and 2024, respectively.

As disclosed in “Note (3) Acquisition,” on March 12, 2024, we acquired the stock of Alfamation™, and as such, we assumed several leases. In addition, we also entered into the Alfamation Lease Agreement for the seller-owned facility where Alfamation™ has its principal operations. The leased premises include warehouse and office space totaling approximately 52 thousand square feet. The semi-annual lease payments are €0.1 million. The impact of the assumption and execution of these leases was a non-cash increase in our ROU assets and operating lease liabilities of approximately $1.7 million at the date of the acquisition.

During the three months ended March 31, 2025, we had an immaterial non-cash increase to our ROU assets and operating lease liabilities.

Excluding the assumption of leases associated with the Alfamation™ acquisition, during the three months ended March 31, 2024, we had an immaterial non-cash increase to our ROU assets and operating lease liabilities.