Lease Obligations
The Company leases certain assets under operating leases, which primarily consist of real estate leases, and finance leases, which generally consist of laboratory equipment leases and office equipment leases. The Company’s real estate agreements expire at various times between 2026 through 2033 and include renewal options that range from three to five years in length.
Lease expense under operating and finance leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | |
| Years Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating lease expense | $ | 2,007 | | | $ | 2,301 | | | $ | 2,018 | |
| Finance lease expense: | | | | | |
| Amortization of right-of-use assets | 2,099 | | | 1,766 | | | 1,212 | |
| Interest on lease liabilities | 340 | | | 316 | | | 201 | |
| Total finance lease expense | $ | 2,439 | | | $ | 2,082 | | | $ | 1,413 | |
Other supplemental information related to leases was as follows:
| | | | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 |
| Weighted average remaining lease term: | | | |
| Operating leases | 9.4 years | | 9.0 years |
| Finance leases | 2.3 years | | 2.6 years |
| Weighted average discount rate: | | | |
| Operating leases | 10.70 | % | | 10.91 | % |
| Finance leases | 9.77 | % | | 8.66 | % |
The following table summarizes the presentation in the Consolidated Balance Sheets of the Company’s operating leases (in thousands):
| | | | | | | | | | | | | | | | | |
| | | As of December 31, |
| Balance Sheet Location | | 2025 | | 2024 |
| Operating lease assets: | | | | | |
| Operating lease assets, net | Right of use assets | | $ | 7,548 | | | $ | 8,061 | |
| Operating lease liabilities: | | | | | |
| Current operating lease liabilities | Operating lease liabilities – current liabilities | | $ | 317 | | | $ | 937 | |
| Non-current operating lease liabilities | Operating lease liabilities – long-term liabilities | | 8,571 | | | 7,924 | |
| Total operating lease liabilities | | | $ | 8,888 | | | $ | 8,861 | |
The following table summarizes the presentation in the Consolidated Balance Sheets of the Company’s finance leases (in thousands):
| | | | | | | | | | | | | | | | | |
| | | As of December 31, |
| Balance Sheet Location | | 2025 | | 2024 |
| Finance lease assets: | | | | | |
| Finance lease assets, net | Right of use assets | | $ | 2,655 | | | $ | 3,947 | |
| Finance lease liabilities: | | | | | |
| Current finance lease liabilities | Finance lease liabilities – current liabilities | | $ | 1,312 | | | $ | 1,835 | |
| Non-current finance lease liabilities | Finance lease liabilities – long-term liabilities | | 1,441 | | | 2,124 | |
| Total finance lease liabilities | | | $ | 2,753 | | | $ | 3,959 | |
Operating lease assets are recorded net of accumulated amortization of $2,305 and $6,065 as of December 31, 2025 and 2024, respectively. Finance lease assets are recorded net of accumulated amortization of $3,798 and $4,059 as of December 31, 2025 and 2024, respectively.
Maturities of lease liabilities as of December 31, 2025 are as follows (in thousands):
| | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases |
| 2026 | | $ | 1,153 | | | $ | 1,520 | |
| 2027 | | 1,462 | | | 1,050 | |
| 2028 | | 1,506 | | | 486 | |
| 2029 | | 1,538 | | | 26 | |
| 2030 | | 1,590 | | | — | |
| Thereafter | | 7,433 | | | — | |
| Total lease payments | | 14,682 | | | 3,082 | |
| Less imputed interest | | (5,794) | | | (329) | |
| Total | | $ | 8,888 | | | $ | 2,753 | |
Supplemental cash flow information related to leases was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | | |
| Operating cash flows for finance leases | | $ | 340 | | | $ | 316 | | | $ | 201 | |
| Operating cash flows for operating leases | | $ | 1,466 | | | $ | 2,156 | | | $ | 1,920 | |
| | | | | | |
| Operating lease assets obtained in exchange for operating lease liabilities | | $ | 366 | | | $ | 438 | | | $ | 4,695 | |
| Finance lease assets obtained in exchange for finance lease liabilities | | $ | 870 | | | $ | 1,391 | | | $ | 2,971 | |
| Non-cash increase to operating lease assets due to remeasurement of operating lease liabilities | | $ | 786 | | | $ | 254 | | | $ | 924 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.