LEASES

Holdings applies judgment in determining the lease term, including evaluating whether renewal or termination options are reasonably certain to be exercised. The Company also uses judgment in determining the appropriate lease discount rate, using the rate implicit in the lease when available or an incremental borrowing rate that reflects the Company’s credit profile and lease term when the implicit rate cannot be readily determined.

Holdings leases certain office space and manufacturing space under arrangements currently classified as leases under ASC 842 - Leases. Holdings recognizes lease expense for these leases on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal options ranging from one to five years. The exercise of lease renewal options is at the Holdings' sole discretion.

Holdings’ leases have remaining lease terms of one to ten years. The Company does not include any renewal options in lease terms when calculating lease liabilities as the Company is not reasonably certain that it will exercise these options. Three of Holdings’ leases provide an early termination option, however, the option was not included in the lease terms when

calculating the lease liability since Holdings determined that it is reasonably certain it will not terminate the leases prior to the termination date.

The weighted-average remaining lease term for Holdings' leases is 5.3 years as of December 31, 2025. The weighted-average discount rate used in the measurement of the lease liabilities was 6.19% as of December 31, 2025.

Holdings has lease agreements that contain both lease and non-lease components. Holdings accounts for lease components together with non-lease components (e.g., common-area maintenance). Variable lease costs are based on day to day common-area maintenance costs related to the lease agreements and are recognized as incurred.

The components of lease costs were as follows:


	Year Ended December 31,
	2025		2024		2023
Operating lease costs	405		2,336		2,185
Variable lease costs	191		929		897
Total lease cost	$	596	$	3,265	$	3,082

Future minimum commitments under all non-cancelable operating leases as of December 31, 2025 are as follows:


Year Ended December 31,
2026	$	2,690
2027	2,084
2028	2,048
2029	1,592
2030	1,215
Thereafter	1,727
Total lease payments	11,356
Less: Imputed interest	(1,844)
Present value of lease liabilities	$	9,512

Supplemental cash flow information and non-cash activity related to our operating leases are as follows:


	Year Ended December 31,
	2025		2024		2023
Operating cash flow information:
Cash paid for amounts included in the measurement of lease liabilities	$	416	$	2,446	$	2,303
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	4,224	$	—	$	491

The right‑of‑use assets recognized in 2025 relates to a lease extended by Holdings prior to the deconsolidation. As a result of the deconsolidation, the Company did not retain the associated right‑of‑use asset or lease liability, and therefore no right‑of‑use assets and operating lease liabilities were reflected on the Company’s balance sheet as of December 31, 2025.

Historical Timeline

Fiscal Year	Filed
2025	Mar 12, 2026	Showing above
2024	Mar 5, 2025

2023	Mar 12, 2024

2022	Mar 10, 2023

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.

GPGI, Inc. Leases Disclosure

Historical Timeline

About Leases Disclosures

Other Available Disclosures