Quarterly report [Sections 13 or 15(d)]

Leases

v3.26.1
Leases
3 Months Ended
Mar. 31, 2026
Leases [Abstract]  
Leases

 

4.

Leases

 

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

 

The Company’s operating lease ROU assets and operating lease liabilities primarily include leases for office and warehouse spaces used to conduct our business. Finance leases primarily consist of lab and processing equipment and motor vehicles used by the Company’s facilities’ operations.

 

The components of lease cost for the Company’s leases were as follows (in thousands):

 

    2026     2025  
    Three Months Ended  
    March 31,  
    2026     2025  
Operating Lease:                
Lease cost   $ 141     $ 121  
                 
Finance Leases:                
Amortization of ROU assets     82       63  
Interst on lease liablity     22       23  
Finance lease     104       86  
                 
Short-term lease rent expense     2       2  
                 
Total lease cost   $ 247     $ 209  

 

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of March 31, 2026, were:

 

    Operating Leases     Finance Leases  
Weighted average remaining lease terms (years)     3.5       2.9  
                 
Weighted average discount rate     7.8 %     9.7 %

 

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases as of March 31, 2025, were:

 

    Operating Leases     Finance Leases  
Weighted average remaining lease terms (years)     4.5       3.7  
                 
Weighted average discount rate     7.7 %     9.4 %

 

The following table reconciles the undiscounted cash flows for the operating and finance leases as of March 31, 2026, to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

 

    Operating Leases     Finance Leases  
2026 (Remaining)   $ 437     $ 286  
2027     492       372  
2028     355       198  
2029     349       118  
2030     77       4  
Total undiscounted lease payments     1,710       978  
Less: Imputed interest     (232 )     (127 )
Present value of lease payments   $ 1,478     $ 851  
                 
Current portion of operating lease obligations   $ 483     $  N/A  
Long-term operating lease obligations, less current portion   $ 995     $  N/A  
Current portion of finance lease obligations   $  N/A     $ 310  
Long-term finance lease obligations, less current portion   $  N/A     $ 541  

 

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

 

    2026     2025  
    Three Months Ended  
    March 31,  
    2026     2025  
Cash paid for amounts included in the measurement of lease liabilities:            
Operating cash flow from operating leases   $ 142     $ 113  
Operating cash flow from finance leases   $ 22     $ 23  
Financing cash flow from finance leases   $ 81     $ 71  
                 
ROU assets obtained in exchange for lease obligations for:                
Finance liabilities   $     $ 132  
Operating liabilities   $ 70     $