NOTE 19. LEASES

The Company has entered into leases for certain facilities, vehicles and other equipment. Our leases have remaining contractual terms of up to ten years, some of which include options to extend the leases for up to five years. Our lease costs are primarily related to facility leases for inventory warehousing, administration offices and vehicles. The Company’s finance leases are immaterial.

Lease ROU assets and liabilities as of December 31, 2025 and 2024, were as follows:

Balance Sheet Classification

December 31, 2025

December 31, 2024

Assets

Lease ROU assets

Other long-term assets

$

11,477

$

13,825

Liabilities

Current lease liabilities

Accrued liabilities

$

3,021

$

3,470

Noncurrent lease liabilities

Other long-term liabilities

$

9,266

$

11,288

Lease costs were as follows:

Affected line item in the Consolidated

Year Ended

Statements of Comprehensive Loss

December 31, 2025

December 31, 2024

Lease costs

Cost of goods sold, Selling, general and administrative

$

3,712

$

3,956

Variable lease costs

Cost of goods sold, Selling, general and administrative

1,877

900

Short-term lease costs

Cost of goods sold, Selling, general and administrative

438

635

$

6,027

$

5,491

The maturity of lease liabilities as of December 31, 2025 are as follows:

Years Ending December 31,

Lease Payments

2026

$

3,505

2027

2,786

2028

2,807

2029

2,657

2030

1,097

Thereafter

804

Total future lease payments

13,656

Less: amount representing interest

(1,369)

Present value of future lease payments

12,287

Less: current lease obligations

(3,021)

Long-term lease obligations

$

9,266

As of December 31, 2025, our leases have a weighted-average remaining lease term of 4.67 years and a weighted-average discount rate of 4.42%.

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 6, 2025
2023Mar 7, 2024
2022Feb 27, 2023
2021Mar 7, 2022
2020Mar 8, 2021
2019Mar 9, 2020

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.