Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

LEASES

We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not materially lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately eight years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing.

We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component.

The components of lease expense were as follows:

	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Operating lease cost	$	5,941	$	6,621	$	7,212
Finance lease cost:
Amortization of ROU assets	122		102		113
Interest on lease liabilities	10		16		18
Total finance lease cost	$	132	$	118	$	131

We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease cost for each of the year ended December 31, 2024, 2023 and 2022 was $0.1 million. Supplemental balance sheet information related to leases was as follows:

	As of			As of
	December 31, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use asset	$	15,880		$	12,231
Current operating lease liability	4,474			5,434
Operating lease liability - less current portion	14,056			10,837
Total operating lease liability	18,530			16,271
Finance leases:
Property and equipment, at cost	1,026			1,722
Accumulated depreciation	(997)			(1,547)
Property and equipment, net	29			175
Current finance lease liability	67			108
Finance lease liability - less current portion	91			112
Total finance lease liability	$	158		$	220
Weighted Average Remaining Lease Term (in years):
Operating leases	5.12			4.57
Finance leases	2.83			2.40
Weighted Average Discount Rate:
Operating leases	5.69		%	5.71		%
Finance leases	5.02		%	5.02		%

Supplemental cash flow information related to leases was as follows:

	Year Ended
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,937	$	7,288	$	7,513
Operating cash flows from finance leases	10		16		18
Financing cash flows from finance leases	155		216		220
ROU assets obtained in exchange for lease obligations:
Operating leases	$	7,361	$	1,298	$	1,792

Maturities of lease liabilities are as follows:

Years Ending December 31,	Operating leases		Finance leases
2025	$	5,308	$	74
2026	4,179		50
2027	3,255		25
2028	2,958		16
2029	2,668		5
Thereafter	3,054		—
Total lease payments	21,422		170
Less imputed interest	(2,892)		(12)
Total	$	18,530	$	158

Leases

LEASES

We have operating and finance leases for manufacturing facilities, corporate offices, research and development facilities, sales and training facilities, vehicles, and certain equipment under which we assume the role of lessee. We do not materially lease assets as a lessor. Our leases have remaining lease terms of less than one year to approximately eight years, some of which include options to extend the leases for up to fifteen years, and some of which include options to terminate the leases within three months. We do not participate in any material subleasing.

We determine if an arrangement is a lease at inception. Operating leases are included in Operating lease right-of-use (“ROU”) asset, Lease liability, and Lease liability - less current portion in our consolidated balance sheets. Finance leases are included in Property and equipment, net, Lease liability, and Lease liability - less current portion in our consolidated balance sheets.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and lease liabilities are recognized on the commencement date of the lease based on the present value of lease payments over the lease term. Variable lease payments that depend on an index or rate include the variable portion when calculating ROU assets and lease liabilities. Variable lease payments that do not depend on an index or rate are expensed as incurred. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available on the commencement date of the lease to determine the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU assets also include any lease payments made and lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option at the time the lease is commenced. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

While we have lease agreements with lease and non-lease components, we account for the lease and non-lease components as a single lease component.

The components of lease expense were as follows:

	Year Ended December 31, 2024		Year Ended December 31, 2023		Year Ended December 31, 2022
Operating lease cost	$	5,941	$	6,621	$	7,212
Finance lease cost:
Amortization of ROU assets	122		102		113
Interest on lease liabilities	10		16		18
Total finance lease cost	$	132	$	118	$	131

We recognize lease payments made for short-term leases where terms are 12 months or less as the payments are incurred. Our short-term lease cost for each of the year ended December 31, 2024, 2023 and 2022 was $0.1 million. Supplemental balance sheet information related to leases was as follows:

	As of			As of
	December 31, 2024			December 31, 2023
Operating leases:
Operating lease right-of-use asset	$	15,880		$	12,231
Current operating lease liability	4,474			5,434
Operating lease liability - less current portion	14,056			10,837
Total operating lease liability	18,530			16,271
Finance leases:
Property and equipment, at cost	1,026			1,722
Accumulated depreciation	(997)			(1,547)
Property and equipment, net	29			175
Current finance lease liability	67			108
Finance lease liability - less current portion	91			112
Total finance lease liability	$	158		$	220
Weighted Average Remaining Lease Term (in years):
Operating leases	5.12			4.57
Finance leases	2.83			2.40
Weighted Average Discount Rate:
Operating leases	5.69		%	5.71		%
Finance leases	5.02		%	5.02		%

Supplemental cash flow information related to leases was as follows:

	Year Ended
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,937	$	7,288	$	7,513
Operating cash flows from finance leases	10		16		18
Financing cash flows from finance leases	155		216		220
ROU assets obtained in exchange for lease obligations:
Operating leases	$	7,361	$	1,298	$	1,792

Maturities of lease liabilities are as follows:

Years Ending December 31,	Operating leases		Finance leases
2025	$	5,308	$	74
2026	4,179		50
2027	3,255		25
2028	2,958		16
2029	2,668		5
Thereafter	3,054		—
Total lease payments	21,422		170
Less imputed interest	(2,892)		(12)
Total	$	18,530	$	158