LEASES

6 Months Ended

Jun. 30, 2025

Leases

LEASES

NOTE 5. LEASES

We have operating leases for certain manufacturing sites, office space, and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one to five years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do not contain any material residual value guarantees or material restrictive covenants. As of June 30, 2025, we have no amounts outstanding on the interim funding agreement for equipment. We have financing leases for certain property and equipment used in the normal course of business.

The components of lease expense were as follows:

	Three Months Ended June 30,
Lease Cost	2025		2024
Operating lease cost	$	564	$	581
Finance lease interest cost		9		6
Finance lease amortization expense		33		129
Total lease cost	$	606	$	716

	Six Months Ended June 30,
Lease Cost	2025		2024
Operating lease cost	$	1,129	$	1,177
Finance lease interest cost		15		12
Finance lease amortization expense		85		129
Total lease cost	$	1,229	$	1,318

Supplemental condensed consolidated balance sheet information related to leases was as follows:

	Balance Sheet Location	June 30, 2025		December 31, 2024
Assets
Finance lease assets	Property and equipment, net	$	878	$	411
Operating lease assets	Operating lease assets, net		7,563		8,139
Total leased assets		$	8,441	$	8,550
Liabilities
Current
Current operating lease liabilities	Current portion of operating lease obligations	$	1,237	$	1,175
Current finance lease liabilities	Current portion of finance lease obligations		229		143
Noncurrent
Long-term operating lease liabilities	Long-term operating lease obligations, net of current portion		7,145		7,773
Long-term finance lease liabilities	Long-term finance lease obligations, net of current portion		781		311
Total lease liabilities		$	9,392	$	9,402

Supplemental condensed consolidated statements of cash flows information for the six months ended June 30, 2025 and 2024 related to leases was as follows:

	June 30,		June 30,
	2025		2024
Operating Leases
Cash paid for amounts included in the measurement of lease liabilities	$	880	$	933
Conversion of notes payable to finance leases	$	637	$	1,923

Future annual payments of lease liabilities as of June 30, 2025 were as follows:

	Operating Leases			Finance Leases			Total
Remainder of 2025	$	925		$	144		$	1,069
2026		1,864			320			2,184
2027		1,571			212			1,783
2028		1,569			212			1,781
2029		986			197			1,183
Thereafter		4,669			67			4,736
Total lease payments	$	11,584		$	1,152		$	12,736
Less: imputed interest		(3,202	)		(142	)		(3,344	)
Present value of lease liabilities	$	8,382		$	1,010		$	9,392

The lease term and discount rate as of June 30, 2025 and 2024 were as follows:

	June 30, 2025			June 30, 2024
Weighted-average remaining lease term (years)
Operating leases		7.4			8.1
Finance leases		2.0			1.7
Weighted-average discount rate
Operating leases		7.8	%		8.0	%
Finance leases		6.6	%		5.3	%