Leases

9 Months Ended

Sep. 30, 2025

Leases [Abstract]

Leases

Leases

Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six

years. Rockwell occupies a 51,000 square foot facility and a 17,500-square foot facility in Wixom, Michigan under a lease expiring in August 2027. During March 2024, the lease for the Wixom facilities was extended by three years to August 2027, which was accounted for as a modification. Rockwell also occupies two other manufacturing facilities, a 51,000-square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000-square foot facility in Greer, South Carolina under a lease expiring February 2026.

During the nine months ended September 30, 2025, Rockwell entered into a lease for a 16,800-square foot storage facility in Allentown, Pennsylvania, that expires in April 2030, resulting in the recognition of a right-of-use asset and corresponding lease liability of approximately $1.0 million on the condensed consolidated balance sheets.

The following summarizes quantitative information about the Company’s operating and finance leases (table in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating Leases
Operating Lease Cost	$	477	$	418	$	1,391	$	1,179
Variable Lease Cost	146		126		411		376
Operating Lease Expense	623		544		1,802		1,555
Finance Leases
Amortization of Right-of-use Assets	109		139		387		421
Interest on Lease Obligations	16		28		59		89
Finance Lease Expense	125		167		446		510
Short-term Lease Rent Expense	5		5		16		16
Total Lease Expense	$	753	$	716	$	2,264	$	2,081
Other Information
Operating Cash Flows from Operating Leases	$	483	$	449	$	1,385	$	1,312
Operating Cash Flows from Finance Leases	$	46	$	28	$	89	$	89
Financing Cash Flows from Finance Leases	$	124	$	140	$	418	$	416

	September 30, 2025		September 30, 2024
Weighted-average Remaining Lease Term – Operating Leases	2.7		2.6
Weighted-average Remaining Lease Term – Finance Leases	1.9		2.7
Weighted-average Discount Rate – Operating Leases	7.9	%	6.3	%
Weighted-average Discount Rate – Finance Leases	6.8	%	6.4	%

Future minimum rental payments under operating and finance lease agreements are as follows (table in thousands):

	Operating		Finance
Year ending December 31, 2025 (remaining)	$	486	$	125
Year ending December 31, 2026	1,316		504
Year ending December 31, 2027	912		311
Year ending December 31, 2028	328		—
Year ending December 31, 2029	282		—
Remaining future payments	96		—
Total	3,420		940
Less Present Value Discount	(378)		(56)
Operating and Finance Lease Liabilities	$	3,042	$	884

Leases

Leases

Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to six

years. Rockwell occupies a 51,000 square foot facility and a 17,500-square foot facility in Wixom, Michigan under a lease expiring in August 2027. During March 2024, the lease for the Wixom facilities was extended by three years to August 2027, which was accounted for as a modification. Rockwell also occupies two other manufacturing facilities, a 51,000-square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000-square foot facility in Greer, South Carolina under a lease expiring February 2026.

During the nine months ended September 30, 2025, Rockwell entered into a lease for a 16,800-square foot storage facility in Allentown, Pennsylvania, that expires in April 2030, resulting in the recognition of a right-of-use asset and corresponding lease liability of approximately $1.0 million on the condensed consolidated balance sheets.

The following summarizes quantitative information about the Company’s operating and finance leases (table in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Operating Leases
Operating Lease Cost	$	477	$	418	$	1,391	$	1,179
Variable Lease Cost	146		126		411		376
Operating Lease Expense	623		544		1,802		1,555
Finance Leases
Amortization of Right-of-use Assets	109		139		387		421
Interest on Lease Obligations	16		28		59		89
Finance Lease Expense	125		167		446		510
Short-term Lease Rent Expense	5		5		16		16
Total Lease Expense	$	753	$	716	$	2,264	$	2,081
Other Information
Operating Cash Flows from Operating Leases	$	483	$	449	$	1,385	$	1,312
Operating Cash Flows from Finance Leases	$	46	$	28	$	89	$	89
Financing Cash Flows from Finance Leases	$	124	$	140	$	418	$	416

	September 30, 2025		September 30, 2024
Weighted-average Remaining Lease Term – Operating Leases	2.7		2.6
Weighted-average Remaining Lease Term – Finance Leases	1.9		2.7
Weighted-average Discount Rate – Operating Leases	7.9	%	6.3	%
Weighted-average Discount Rate – Finance Leases	6.8	%	6.4	%

Future minimum rental payments under operating and finance lease agreements are as follows (table in thousands):

	Operating		Finance
Year ending December 31, 2025 (remaining)	$	486	$	125
Year ending December 31, 2026	1,316		504
Year ending December 31, 2027	912		311
Year ending December 31, 2028	328		—
Year ending December 31, 2029	282		—
Remaining future payments	96		—
Total	3,420		940
Less Present Value Discount	(378)		(56)
Operating and Finance Lease Liabilities	$	3,042	$	884