LEASES

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

LEASES

LEASES

The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.

If the lease arrangement also contains non-lease components, the Company elected the practical expedient not to separate any combined lease and non-lease components for all lease contracts. For our real estate leases, the payments used in the calculation of a new lease liability include fixed payments and variable payments (if the variable payments are based on an index) over the remaining lease term. Variable lease payments based on indices have been included in the related right-of-use assets and lease liabilities on our Consolidated Balance Sheets, while variable lease payments based on usage of the underlying asset have been excluded and are expensed in the period they are incurred, as they do not represent present rights or obligations. Variable lease components for leases relate primarily to common area maintenance charges and other separately billed lessor services, sales and real estate taxes.

Any new additional operating and financing lease liabilities and corresponding right-of-use (“ROU”) assets are based on the present value of the remaining minimum rental payments. The Company’s operating lease liability increased approximately $1.0 million as a result of acquiring ROU assets from new leases entered into during the year ended December 31, 2024. In determining the incremental borrowing rate, we have considered borrowing data for secured debt obtained from our lending institution.

The following is a summary of the Company’s ROU assets and lease liabilities at December 31:

(In thousands)	2024		2023
Operating Leases:
Operating Right-of-Use Assets, Gross	$	43,626	$	43,528
Less Accumulated Right-of-Use Asset Impairment	—		53
Less Accumulated Amortization	20,017		15,566
Operating Right-of-Use Assets, Net	$	23,609	$	27,909
Short-term Operating Lease Liabilities	$	4,697	$	5,069
Long-term Operating Lease Liabilities	20,508		24,376
Operating Lease Liabilities	$	25,205	$	29,445
Finance Leases:
Finance Right-of-Use Assets, Gross	$	329	$	274
Less Accumulated Amortization	149		80
Finance Right-of-Use Assets, Net — Included in Other Assets	$	180	$	194
Short-term Finance Lease Liabilities — Included in Other Accrued Expenses	$	79	$	97
Long-term Finance Lease Liabilities — Included in Other Liabilities	48		104
Finance Lease Liabilities	$	127	$	201

The following is a summary of the Company’s total lease costs as of December 31:

(In thousands)	2024		2023
Finance Lease Cost:
Amortization of ROU Assets	$	76	$	54
Interest on Lease Liabilities	10		9
Total Finance Lease Cost	86		63
Operating Lease Cost	6,731		6,352
Impairment Charge of Operating Lease ROU Asset	—		53
Variable Lease Cost	2,550		2,240
Short-term Lease Cost (excluding month-to-month)	178		251
Less Sublease and Rental Income	(969)		(548)
Total Operating Lease Cost	8,490		8,348
Total Net Lease Cost	$	8,576	$	8,411

The following is a summary of cash paid for amounts included in the measurement of lease liabilities as of December 31:

(In thousands)	2024		2023
Operating Cash Flow for Finance Leases	$	10	$	9
Operating Cash Flow for Operating Leases	$	6,664	$	6,180
Financing Cash Flow for Finance Leases	$	135	$	47

As permitted by ASC 842, leases with expected durations of less than 12 months from inception (i.e. short-term leases) were excluded from the Company’s calculation of its lease liability and ROU asset.

The weighted-average remaining term for the Company’s operating and financing leases are approximately 7 years and 1 year, respectively. The weighted-average discount rates for the Company’s operating and financing leases are approximately 5.8% and 6.3%, respectively.

The following is a summary of the Company’s maturity of lease liabilities:

(In thousands)	Operating Leases		Financing Leases
2025	$	5,928	$	84
2026	4,503		43
2027	3,802		13
2028	3,620		—
2029	3,024		—
Thereafter	10,161		—
Total Lease Payments	31,038		140
Less: Interest	5,833		13
Total Lease Liability	$	25,205	$	127

These amounts exclude annual operating lease payments of $3.3 million per year through 2033, which represents legal binding lease payments for leases signed, but not yet commenced.

LEASES

LEASES

The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.

If the lease arrangement also contains non-lease components, the Company elected the practical expedient not to separate any combined lease and non-lease components for all lease contracts. For our real estate leases, the payments used in the calculation of a new lease liability include fixed payments and variable payments (if the variable payments are based on an index) over the remaining lease term. Variable lease payments based on indices have been included in the related right-of-use assets and lease liabilities on our Consolidated Balance Sheets, while variable lease payments based on usage of the underlying asset have been excluded and are expensed in the period they are incurred, as they do not represent present rights or obligations. Variable lease components for leases relate primarily to common area maintenance charges and other separately billed lessor services, sales and real estate taxes.

Any new additional operating and financing lease liabilities and corresponding right-of-use (“ROU”) assets are based on the present value of the remaining minimum rental payments. The Company’s operating lease liability increased approximately $1.0 million as a result of acquiring ROU assets from new leases entered into during the year ended December 31, 2024. In determining the incremental borrowing rate, we have considered borrowing data for secured debt obtained from our lending institution.

The following is a summary of the Company’s ROU assets and lease liabilities at December 31:

(In thousands)	2024		2023
Operating Leases:
Operating Right-of-Use Assets, Gross	$	43,626	$	43,528
Less Accumulated Right-of-Use Asset Impairment	—		53
Less Accumulated Amortization	20,017		15,566
Operating Right-of-Use Assets, Net	$	23,609	$	27,909
Short-term Operating Lease Liabilities	$	4,697	$	5,069
Long-term Operating Lease Liabilities	20,508		24,376
Operating Lease Liabilities	$	25,205	$	29,445
Finance Leases:
Finance Right-of-Use Assets, Gross	$	329	$	274
Less Accumulated Amortization	149		80
Finance Right-of-Use Assets, Net — Included in Other Assets	$	180	$	194
Short-term Finance Lease Liabilities — Included in Other Accrued Expenses	$	79	$	97
Long-term Finance Lease Liabilities — Included in Other Liabilities	48		104
Finance Lease Liabilities	$	127	$	201

The following is a summary of the Company’s total lease costs as of December 31:

(In thousands)	2024		2023
Finance Lease Cost:
Amortization of ROU Assets	$	76	$	54
Interest on Lease Liabilities	10		9
Total Finance Lease Cost	86		63
Operating Lease Cost	6,731		6,352
Impairment Charge of Operating Lease ROU Asset	—		53
Variable Lease Cost	2,550		2,240
Short-term Lease Cost (excluding month-to-month)	178		251
Less Sublease and Rental Income	(969)		(548)
Total Operating Lease Cost	8,490		8,348
Total Net Lease Cost	$	8,576	$	8,411

The following is a summary of cash paid for amounts included in the measurement of lease liabilities as of December 31:

(In thousands)	2024		2023
Operating Cash Flow for Finance Leases	$	10	$	9
Operating Cash Flow for Operating Leases	$	6,664	$	6,180
Financing Cash Flow for Finance Leases	$	135	$	47

As permitted by ASC 842, leases with expected durations of less than 12 months from inception (i.e. short-term leases) were excluded from the Company’s calculation of its lease liability and ROU asset.

The weighted-average remaining term for the Company’s operating and financing leases are approximately 7 years and 1 year, respectively. The weighted-average discount rates for the Company’s operating and financing leases are approximately 5.8% and 6.3%, respectively.

The following is a summary of the Company’s maturity of lease liabilities:

(In thousands)	Operating Leases		Financing Leases
2025	$	5,928	$	84
2026	4,503		43
2027	3,802		13
2028	3,620		—
2029	3,024		—
Thereafter	10,161		—
Total Lease Payments	31,038		140
Less: Interest	5,833		13
Total Lease Liability	$	25,205	$	127

These amounts exclude annual operating lease payments of $3.3 million per year through 2033, which represents legal binding lease payments for leases signed, but not yet commenced.