Leases

12 Months Ended

Dec. 31, 2025

Leases [Abstract]

Leases

Leases                

The Company accounts for its leases under ASC Topic 842 Leases. The Company has both operating and finance leases for certain assets. The Company has elected to apply the short-term measurement and recognition exemption, under which the right-of-use (“ROU”) assets and lease liabilities are not recognized for short-term leases.

The following table summarizes the Company’s ROU assets and lease liabilities (in thousands):

	December 31,
	2025		2024
Lease assets
Finance lease ROU assets	$	48,791	$	—
Operating lease ROU assets, including $26,419 and $0, respectively, from leases with related parties	48,297		16,384
Lease assets	$	97,088	$	16,384
Current portion of lease liabilities
Finance lease liabilities, current portion	$	188	$	—
Operating lease liabilities, current portion, including $592 and $0, respectively, from leases with related parties	7,474		5,600
Current portion of lease liabilities	$	7,662	$	5,600
Lease liabilities, net of current portion
Finance lease liabilities, long-term portion	$	42,264	$	—
Operating lease liabilities, long-term portion, including $26,050 and $0, respectively, from leases with related parties	47,288		15,128
Lease Liabilities, net of current portion	$	89,552	$	15,128

The components of lease cost were as follows (in thousands):

	Year Ended December 31,
	2025		2024		2023
Finance Leases:
Amortization of finance lease assets	$	450	$	—	$	—
Interest obligation under finance leases	687		—		—
Total lease costs	$	1,137	$	—	$	—
Operating Leases:
Fixed operating lease costs to non-related parties	$	8,574	$	8,262	$	8,188
Fixed operating lease costs to related parties	1,152		—		—
Variable operating lease costs to non-related parties	1,931		1,838		1,501
Short-term lease costs	57		48		86
Total lease costs	$	11,714	$	10,148	$	9,775

Future minimum lease payments as of December 31, 2025, are as follows (in thousands):

			Operating Leases
	Finance Leases		Related Party		Non-Related Party		Total Operating		Total
2026	$	2,452	$	2,451	$	8,370	$	10,821	$	13,273
2027	3,067		2,525		6,762		9,287		12,354
2028	3,173		2,601		5,410		8,011		11,184
2029	3,284		2,679		3,359		6,038		9,322
2030	3,399		2,759		3,480		6,239		9,638
Thereafter	87,783		31,316		7,884		39,200		126,983
Total lease payments	103,158		44,331		35,265		79,596		182,754
Less: Imputed lease interest	(60,706)		(17,689)		(7,145)		(24,834)		(85,540)
Total lease liabilities	$	42,452	$	26,642	$	28,120	$	54,762	$	97,214

Other information pertaining to leases consists of the following:

	Year Ended December 31,
	2025		2024		2023
Weighted average remaining lease-term
Finance leases	23.3 years		n/a		n/a
Operating leases	9.8 years		6.0 years		5.7 years
Weighted average discount rate
Finance leases	7.8	%	—	%	—	%
Operating leases	7.5	%	8.3	%	7.9	%

Supplemental cash flow and other information related to leases are as follows (in thousands):

	Year Ended December 31,
	2025		2024		2023
Operating cash flows from operating leases	7,454		7,042		7,911
Non cash investing activities:
Lease liabilities arising from obtaining right-of-use assets, including those assumed through acquisition	$	81,611	$	849	$	10,562

In May 2024, the Company entered into a triple net lease (“NNN term lease”) with GDC Sunshine LLC (“Lessor”) for 13 1/2 years (162 full calendar months) for a new manufacturing and office facility in Bernalillo County, New Mexico (the “County”). The NNN term lease agreement allows for an extension of one consecutive period of 10 years. The new facility that is mixed use and built for general purposes will be approximately 216,000 square feet when constructed.

The Company took control of the facility in the fourth quarter of 2025, at which point the NNN term lease commenced and will be accounted for as a finance lease. Future minimum lease payments under the NNN term lease, assuming the Company executes the renewal option, are estimated to be $103.2 million, payable over the expected lease term beginning with the commencement date.

In connection with this NNN term lease and the Company’s planned acquisition of machinery and equipment related to the new facility, the Lessor and the Company entered into a series of transactions with the County related to a tax abatement plan. These transactions had no net impact to the consolidated financial statements of the Company. The tax abatement plan provides for the effective elimination of 75% of the real property taxes and 100% of the personal property taxes payable to the County by the Company and the Lessor during the term of the NNN term lease, and the abatement of 100% of the sales and use taxes that would be incurred by the Company and the Lessor related to the purchase and use of machinery and equipment.

Leases

Leases                

The Company accounts for its leases under ASC Topic 842 Leases. The Company has both operating and finance leases for certain assets. The Company has elected to apply the short-term measurement and recognition exemption, under which the right-of-use (“ROU”) assets and lease liabilities are not recognized for short-term leases.

The following table summarizes the Company’s ROU assets and lease liabilities (in thousands):

	December 31,
	2025		2024
Lease assets
Finance lease ROU assets	$	48,791	$	—
Operating lease ROU assets, including $26,419 and $0, respectively, from leases with related parties	48,297		16,384
Lease assets	$	97,088	$	16,384
Current portion of lease liabilities
Finance lease liabilities, current portion	$	188	$	—
Operating lease liabilities, current portion, including $592 and $0, respectively, from leases with related parties	7,474		5,600
Current portion of lease liabilities	$	7,662	$	5,600
Lease liabilities, net of current portion
Finance lease liabilities, long-term portion	$	42,264	$	—
Operating lease liabilities, long-term portion, including $26,050 and $0, respectively, from leases with related parties	47,288		15,128
Lease Liabilities, net of current portion	$	89,552	$	15,128

The components of lease cost were as follows (in thousands):

	Year Ended December 31,
	2025		2024		2023
Finance Leases:
Amortization of finance lease assets	$	450	$	—	$	—
Interest obligation under finance leases	687		—		—
Total lease costs	$	1,137	$	—	$	—
Operating Leases:
Fixed operating lease costs to non-related parties	$	8,574	$	8,262	$	8,188
Fixed operating lease costs to related parties	1,152		—		—
Variable operating lease costs to non-related parties	1,931		1,838		1,501
Short-term lease costs	57		48		86
Total lease costs	$	11,714	$	10,148	$	9,775

Future minimum lease payments as of December 31, 2025, are as follows (in thousands):

			Operating Leases
	Finance Leases		Related Party		Non-Related Party		Total Operating		Total
2026	$	2,452	$	2,451	$	8,370	$	10,821	$	13,273
2027	3,067		2,525		6,762		9,287		12,354
2028	3,173		2,601		5,410		8,011		11,184
2029	3,284		2,679		3,359		6,038		9,322
2030	3,399		2,759		3,480		6,239		9,638
Thereafter	87,783		31,316		7,884		39,200		126,983
Total lease payments	103,158		44,331		35,265		79,596		182,754
Less: Imputed lease interest	(60,706)		(17,689)		(7,145)		(24,834)		(85,540)
Total lease liabilities	$	42,452	$	26,642	$	28,120	$	54,762	$	97,214

Other information pertaining to leases consists of the following:

	Year Ended December 31,
	2025		2024		2023
Weighted average remaining lease-term
Finance leases	23.3 years		n/a		n/a
Operating leases	9.8 years		6.0 years		5.7 years
Weighted average discount rate
Finance leases	7.8	%	—	%	—	%
Operating leases	7.5	%	8.3	%	7.9	%

Supplemental cash flow and other information related to leases are as follows (in thousands):

	Year Ended December 31,
	2025		2024		2023
Operating cash flows from operating leases	7,454		7,042		7,911
Non cash investing activities:
Lease liabilities arising from obtaining right-of-use assets, including those assumed through acquisition	$	81,611	$	849	$	10,562

In May 2024, the Company entered into a triple net lease (“NNN term lease”) with GDC Sunshine LLC (“Lessor”) for 13 1/2 years (162 full calendar months) for a new manufacturing and office facility in Bernalillo County, New Mexico (the “County”). The NNN term lease agreement allows for an extension of one consecutive period of 10 years. The new facility that is mixed use and built for general purposes will be approximately 216,000 square feet when constructed.

The Company took control of the facility in the fourth quarter of 2025, at which point the NNN term lease commenced and will be accounted for as a finance lease. Future minimum lease payments under the NNN term lease, assuming the Company executes the renewal option, are estimated to be $103.2 million, payable over the expected lease term beginning with the commencement date.

In connection with this NNN term lease and the Company’s planned acquisition of machinery and equipment related to the new facility, the Lessor and the Company entered into a series of transactions with the County related to a tax abatement plan. These transactions had no net impact to the consolidated financial statements of the Company. The tax abatement plan provides for the effective elimination of 75% of the real property taxes and 100% of the personal property taxes payable to the County by the Company and the Lessor during the term of the NNN term lease, and the abatement of 100% of the sales and use taxes that would be incurred by the Company and the Lessor related to the purchase and use of machinery and equipment.