Leases
The Company is the lessee for substantially all of its leasing activity, which includes operating and finance leases. As of December 31, 2025, the Company has two operating leases for office space with remaining terms between 6 and 9 years with neither lease containing options to renew. The Company currently leases 44 finance leases for vehicles with remaining terms between 8 and 45 months with an option to renew. The Company also has 3 finance leases for office equipment with remaining terms between 1 and 4 years, all of which have one-year options to renew. Renewal options are not reasonably certain and are not included in in lease assets and liabilities.
In the third quarter of 2025, the Company remeasured one of its operating leases for office space as a result of extending the termination date from April 30, 2027 to April 30, 2032. The lease remeasurement resulted in an increase in the lease liability and ROU asset of approximately $2.1 million on the Consolidated Balance Sheets. The lease remeasurement did not materially impact the Consolidated Statements of Operations.
Information regarding ROU lease assets and liabilities were as follows:
| | | | | | | | |
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Lease assets | | |
| Finance leases | $ | 1,282 | | $ | 1,141 | |
| Operating leases | 2,708 | | 1,016 | |
| Total lease assets | $ | 3,990 | | $ | 2,157 | |
| | |
| Lease liabilities | | |
| Current | | |
| Finance leases | $ | 452 | | $ | 377 | |
| Operating leases | 398 | | 494 | |
| Noncurrent | | |
| Finance leases | 727 | | 759 | |
| Operating leases | 3014 | | 691 | |
| Total lease liabilities | $ | 4,591 | | $ | 2,321 | |
| | | | | | | | |
| December 31, 2025 | December 31, 2024 |
| Weighted average remaining lease term (years) | | |
| Finance leases | 2.8 | 3.1 |
| Operating leases | 2.6 | 3.1 |
| Weighted average discount rate | | |
| Finance leases | 5.3 | % | 4.5 | % |
| Operating leases | 6.5 | % | 4.0 | % |
| | | | | | | | |
| (in thousands) | December 31, 2025 | December 31, 2024 |
| Lease Costs | | |
| Finance lease cost | | |
| Amortization of ROU assets | $ | 355 | | $ | 198 | |
| Interest on lease liabilities | 59 | | 44 | |
| Total finance lease cost | 414 | | 242 | |
| Operating leases | 490 | | 377 | |
| Total lease cost | $ | 904 | | $ | 619 | |
| | | | | | | | |
| Years Ended
December 31, |
| (in thousands) | 2025 | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities | | |
| Operating cash flows used for finance leases | $ | 59 | | $ | 44 | |
| Operating cash flows used for operating leases | 405 | | 264 | |
| Financing cash flows used for finance leases | 401 | | 273 | |
| Right-of-use assets obtained in exchange for lease obligations | | |
| Finance leases | 443 | | 818 | |
| Operating leases | — | | 136 | |
| Other | | |
| Operating lease remeasurement | 2,095 | | — | |
On the Consolidated Statements of Operations, amortization of ROU assets is included in Depreciation, amortization and accretion, interest on finance lease liabilities is included in Interest expense and operating leases are included in both Operations and maintenance and General and administrative expenses, depending on the primary use of the leased asset.
The maturity analysis of lease liabilities as of December 31, 2025 was as follows:
| | | | | | | | |
| (in thousands) | Finance Lease Obligations | Operating Lease Obligations |
| 2026 | $ | 506 | | $ | 609 | |
| 2027 | 410 | | 607 | |
| 2028 | 271 | | 618 | |
| 2029 | 97 | | 636 | |
| 2030 | — | | 656 | |
| Thereafter | — | | 1,129 | |
| Subtotal | 1,284 | | 4,255 | |
| Less: amount representing interest | 105 | | 843 | |
| Total | $ | 1,179 | | $ | 3,412 | |
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.