The Company has operating leases for real estate (primarily its operating facilities) and certain equipment with various expiration dates. The Company also has finance leases for certain equipment. During the year ended December 31, 2024, the Company purchased two multi-tenant buildings in Winston-Salem, North Carolina, which it had previously occupied under the terms of a real estate lease. In connection with this purchase, the Company assumed the existing lease agreements held with certain third parties which leased space in these buildings.

For the three months ended June 30, 2025 and 2024, the Company’s rent expense was $298,000 and $513,000, respectively. For the six months ended June 30, 2025 and 2024, the Company’s rent expense was $619,000 and $935,000, respectively. Cash paid for operating leases during the six months ended June 30, 2025 was $484,000.

The following table summarizes the classification of operating and finance lease assets and obligations in the Company's Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024 (in thousands):


	June 30, 2025		December 31, 2024
Operating leases:
Right of use assets	$	4,095	$	2,869

Operating lease liabilities, current	$	896	$	740
Operating lease liabilities, noncurrent		3,446		2,393
Total operating lease liabilities	$	4,342	$	3,133

Finance leases:
Right of use assets	$	73	$	97

Finance lease liabilities, current	$	7	$	25
Finance lease liabilities, noncurrent		69		78
Total finance lease liabilities	$	76	$	103

Maturities of lease liabilities for the Company’s operating and finance leases are as follows as of June 30, 2025 (in thousands):


	Operating Leases			Finance Leases			Total
2025 (remaining six months)	$	618		$	11		$	629
2026		1,429			22			1,451
2027		1,292			22			1,314
2028		1,075			22			1,097
2029		457			16			473
Thereafter		672			—			672
Total lease payments		5,543			93			5,636
Less: imputed interest		(1,201	)		(17	)		(1,218	)
Present value of lease liabilities	$	4,342		$	76		$	4,418

The weighted average remaining lease term for operating leases is 4.3 years and 4.5 years for finance leases. The weighted average discount rate for operating leases is 10.9% and 5.6% for finance leases.

The Company leases a portion of its facilities in Winston-Salem, North Carolina under agreements that are classified as operating leases. In addition to the rental payments, tenants pay a fixed rate for their pro rata share of real estate taxes, insurance and other facility operating expenses. These amounts are recognized as revenues on a straight-line basis over the term of the related leases. For leasing revenues where collectability is not considered probable, lease income is recognized on a cash basis and all previously recognized tenant accounts receivables, including straight-line rent, are fully reserved in the period in which the lease income is determined not to be probable of collection. These lease agreements terminate between 2026 and 2029.

The leasing revenue for the three and six months ended June 30, 2025 was $221,000 and $451,000, respectively and there was no such revenue for the three and six months ended June 30, 2024. Future minimum lease payments under non-cancelable operating leases as of June 30, 2025 excluding the effect of straight-line rent and variable rental payments are as follows (in thousands):


	Total
2025 (remaining six months)	$	277
2026		522
2027		495
2028		289
2029		13
Thereafter		—
Total	$	1,596