Leases

3 Months Ended

Mar. 31, 2025

Note 7 – Leases

The Company has operating and finance leases for facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company does not combine lease and non-lease components in the recognition of lease expense.

As of March 31, 2025 the Company held four leases for office, manufacturing and warehouse facilities in Aliso Viejo, California. The four leases are for approximately 150,000 square feet in the aggregate. For one such operating lease, the lessor provided $1.1 million in tenant allowances.

The following table presents the lease balances within the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024 (in thousands):


		March 31,		December 31,
Leases	Classification	2025		2024

Assets
Operating	Operating leases right-of-use assets	$	10,922	$	11,217
Finance	Property and equipment, net		129		125
Total lease assets			11,051		11,342
Liabilities
Current
Operating	Lease liabilities		1,023		946
Finance	Lease liabilities		32		28
Noncurrent
Operating	Long-term lease liabilities		10,879		11,216
Finance	Long-term lease liabilities		108		106
Total lease liabilities		$	12,042	$	12,296

Maturities of the Company’s operating and finance lease liabilities as of March 31, 2025 were as follows (in thousands):


	Operating			Finance
Year Ended December 31,	Leases			Leases
2025 (remainder)	$	1,938		$	37
2026		2,911			50
2027		3,066			50
2028		3,165			43
2029		3,258			—
2030		3,365			—
Thereafter		284			—
Total lease payments		17,987			180
Less: imputed interest		(6,085	)		(40	)
Total lease liabilities	$	11,902		$	140

The weighted average remaining lease term and weighted average discount rate used to determine lease liabilities related to the Company’s operating and finance leases as of March 31, 2025 and December 31, 2024 were:


	March 31,			December 31,
Lease Term and Discount Rate	2025			2024
Weighted average remaining lease term (years)
Operating leases		5.83			6.08
Finance leases		3.60			3.85
Weighted average discount rate
Operating leases		14.4	%		14.4	%
Finance leases		14.3	%		14.4	%