LEASES

6 Months Ended

Jun. 30, 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 and six months ended June 30, 2025 and 2024, respectively, were as follows:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Operating lease cost	$	641	$	509	$	1,294	$	960
Short-term lease cost	2		4		6		7

The following is additional information about our leases as of June 30, 2025:


Range of remaining lease terms (in years)	0.3	to	6.7
Weighted average remaining lease term (in years)		5.4
Weighted average discount rate		6.7%

Maturities of lease liabilities as of June 30, 2025, were as follows:


(in thousands)
2025 (remainder)	$	1,410
2026	2,529
2027	2,334
2028	1,696
2029	1,583
Thereafter	2,624
Total lease payments	$	12,176
Less imputed interest	(1,760)
Total	$	10,416

Cash Flow Information


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2025		2024		2025		2024
Amortization of ROU assets	$	428	$	282	$	1,066	$	685
ROU assets obtained in exchange for operating lease obligations	1		5,517		86		5,623

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.