XML 43 R31.htm IDEA: XBRL DOCUMENT v3.25.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Schedule of Supplemental Balance Sheets Information
The following table summarizes the lease amounts included in the Company's condensed consolidated balance sheets:
(in thousands)Classification on the Condensed Consolidated Balance SheetsSeptember 30, 2025December 31, 2024
Assets
Operating
Operating lease right-of-use assets(1)(2)
$20,758 $21,539 
Finance
Property and equipment, net(3)(4)
23,664 13,966 
Total lease assets$44,422 $35,505 
Liabilities
Current
   OperatingCurrent operating lease liabilities$4,284 $4,093 
   FinanceCurrent portion of long-term debt5,255 3,314 
Noncurrent
   OperatingLong-term operating lease liabilities16,938 17,766 
   Finance
Long-term debt(5)
22,132 13,925 
Total lease liabilities$48,609 $39,098 
(1)     Operating lease assets are recorded net of accumulated amortization of $16.9 million at September 30, 2025 and $14.1 million at December 31, 2024.
(2)    Includes approximately $0.8 million and $0.9 million at September 30, 2025 and December 31, 2024, respectively, related to a below-market lease recognized as a result of the Industrial Air Transaction, which was recorded as an increase to the Company’s operating lease right-of-use assets on its condensed consolidated balance sheet. The below-market lease will be amortized to amortization expense over the remaining lease term.
(3)    Finance lease vehicle assets are recorded net of accumulated amortization of $7.8 million at September 30, 2025 and $5.0 million at December 31, 2024.
(4)    Includes approximately $2.3 million and $2.4 million of net property assets associated with the Company's Pontiac Facility at September 30, 2025 and December 31, 2024, respectively.
(5)    Includes approximately $5.4 million associated with the Company's sale and leaseback financing transaction at both September 30, 2025 and December 31, 2024. See Note 6 for further detail.
Schedule of Lease Costs, Lease Terms and Discount Rates
The following table summarizes the lease costs included in the Company's condensed consolidated statements of operations for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended
September 30,		Nine Months Ended
September 30,
(in thousands)Classification on the Condensed Consolidated Statement of Operations2025202420252024
Operating lease cost
Cost of revenue(1)
$834 $785 $2,603 $2,116 
Operating lease cost
Selling, general and administrative(1)
524 523 1,389 1,848 
Finance lease cost
   Amortization
Cost of revenue(2)
1,421 816 3,392 2,310 
   Interest
Interest expense, net(2)
278 128 650 363 
Total lease cost$3,057 $2,252 $8,034 $6,637 
(1)    Operating lease costs recorded in cost of revenue included $0.3 million and $0.2 million of variable lease costs for the three months ended September 30, 2025 and 2024, respectively, and $0.6 million and $0.4 million for the nine months ended September 30, 2025 and 2024, respectively. In addition, $0.1 million of variable lease costs are included in selling, general and administrative for both the three months ended September 30, 2025 and 2024, and $0.3 million for each of the nine months ended September 30, 2025 and 2024. These variable costs consist of the Company's proportionate share of operating expenses, real estate taxes and utilities.
(2)     Finance lease costs recorded in cost of revenue include variable lease costs of $0.9 million and $1.0 million for the three months ended September 30, 2025 and 2024, respectively, and $2.8 million and $3.0 million for the nine months ended September 30, 2025 and 2024, respectively. These variable lease costs consist of fuel, maintenance, and sales tax charges.
The following is a summary of the lease terms and discount rates as of:
September 30, 2025December 31, 2024
Weighted average lease term (in years):
   Operating5.585.90
   Finance (1)
4.133.84
Weighted average discount rate:
   Operating6.17 %6.02 %
   Finance (1)
5.43 %6.06 %
(1)     Excludes the weighted average lease term and weighted average discount rate associated with the aforementioned sale-leaseback financing transaction, which has a Primary Term of 25 years and utilized an implicit rate of 11.11%. See Note 6 for further detail.
Schedule of Future Minimum Commitment for Finance Leases
The future undiscounted minimum finance lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s condensed consolidated balance sheets within current and long-term debt, less interest, and under current and long-term operating leases, less imputed interest, as of September 30, 2025 were as follows (in thousands):
Finance Lease ObligationsOperating Lease Obligations
Year ending:VehiclesPontiac FacilityTotal FinanceNon-Related Party
Related Party(1)
Total Operating
Sublease Receipts(2)
Remainder of 2025$1,631 $134 $1,765 $1,001 $191 $1,192 $279 
20266,070 542 6,612 4,719 770 5,489 1,132 
20275,178 555 5,733 3,999 871 4,870 495 
20284,482 569 5,051 3,176 871 4,047 14 
20294,656 583 5,239 2,502 876 3,378 — 
Thereafter2,676 13,149 15,825 1,966 4,121 6,087 — 
Total minimum lease payments24,693 15,532 40,225 17,363 7,700 25,063 $1,920 
Financing Component (3)
(2,657)(10,181)(12,838)(2,279)(1,562)(3,841)
Net present value of minimum lease payments22,036 5,351 27,387 15,084 6,138 21,222 
Less: current portion of finance and operating lease obligations(5,255)— (5,255)(3,830)(454)(4,284)
Long-term finance and operating lease obligations$16,781 $5,351 $22,132 $11,254 $5,684 $16,938 
(1)    Associated with the aforementioned related party leases entered into with former members of JMLLC and Industrial Air.
(2)    Primarily associated with the aforementioned third-party sublease agreement.
(3)     The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Schedule of Future Minimum Commitment for Operating Leases
The future undiscounted minimum finance lease payments, as reconciled to the discounted minimum lease obligation indicated on the Company’s condensed consolidated balance sheets within current and long-term debt, less interest, and under current and long-term operating leases, less imputed interest, as of September 30, 2025 were as follows (in thousands):
Finance Lease ObligationsOperating Lease Obligations
Year ending:VehiclesPontiac FacilityTotal FinanceNon-Related Party
Related Party(1)
Total Operating
Sublease Receipts(2)
Remainder of 2025$1,631 $134 $1,765 $1,001 $191 $1,192 $279 
20266,070 542 6,612 4,719 770 5,489 1,132 
20275,178 555 5,733 3,999 871 4,870 495 
20284,482 569 5,051 3,176 871 4,047 14 
20294,656 583 5,239 2,502 876 3,378 — 
Thereafter2,676 13,149 15,825 1,966 4,121 6,087 — 
Total minimum lease payments24,693 15,532 40,225 17,363 7,700 25,063 $1,920 
Financing Component (3)
(2,657)(10,181)(12,838)(2,279)(1,562)(3,841)
Net present value of minimum lease payments22,036 5,351 27,387 15,084 6,138 21,222 
Less: current portion of finance and operating lease obligations(5,255)— (5,255)(3,830)(454)(4,284)
Long-term finance and operating lease obligations$16,781 $5,351 $22,132 $11,254 $5,684 $16,938 
(1)    Associated with the aforementioned related party leases entered into with former members of JMLLC and Industrial Air.
(2)    Primarily associated with the aforementioned third-party sublease agreement.
(3)     The financing component for finance lease obligations represents the interest component of finance leases that will be recognized as interest expense in future periods. The financing component for operating lease obligations represents the effect of discounting the lease payments to their present value.
Schedule of Leases Supplemental Cash Flow Information
The following is a summary of other information and supplemental cash flow information related to finance and operating leases:
Nine months ended September 30,
(in thousands)20252024
Cash paid for amounts included in the measurement of lease liabilities:
   Operating cash flows from operating leases$3,935 $3,778 
   Operating cash flows from finance leases619 361 
   Financing cash flows from finance leases3,052 2,179 
Right-of-use assets exchanged for lease liabilities:
   Operating leases2,317 4,776 
   Finance leases13,475 3,095 
Right-of-use assets disposed or adjusted modifying finance leases liabilities— 988