Note 8. Leases
The Company enters into operating leases for its corporate office, temporary offices, vehicles and equipment. In addition, the Company may enter into arrangements whereby portions of the leased premises are subleased to third parties and are classified as operating leases.
In February 2025, the Company executed a sublease for a portion of its corporate office through April 2027. The components of lease operating income which are primarily included as reductions to R&D and selling, general and administrative expense in the consolidated statements of operations.
In May 2023, the Company executed a lease for its facility in Milford, Ohio, with a term through 2028 including the option to extend the term for up to two consecutive terms of three years, which was not reasonably certain to be exercised at the commencement date.
In December 2021, the Company amended the lease for its corporate office. This amendment increased the amount of space under the original lease, adjusted the monthly lease payments, and decreased the term of the lease to April 2027. The lease amendment includes the option to extend the term for up to two consecutive terms of five years, which was not reasonably certain to be exercised at the modification date.
The following table provides a summary of the components of lease operating costs which are primarily included within R&D and selling, general and administrative expense:
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| Year Ended December 31, |
| 2025 | | 2024 | | |
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| Operating lease cost | $ | 2,376 | | | $ | 2,476 | | | |
| Short-term lease cost | 337 | | | 42 | | | |
| Variable lease cost | 1,060 | | | 658 | | | |
| Sublessor income | (294) | | | — | | | |
| Total operating lease costs | $ | 3,479 | | | $ | 3,176 | | | |
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The following table provides the weighted-average lease terms and discount rates used for the Company’s operating leases:
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| December 31, |
| 2025 | | 2024 |
| Weighted-average remaining lease term: | | | |
| Operating leases | 1.7 years | | 2.6 years |
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| Weighted-average discount rate: | | | |
| Operating leases | 8.9 | % | | 8.6 | % |
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The following table provides a summary of operating lease liability maturities for the next five years and thereafter at December 31, 2025:
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| 2026 | $ | 2,993 | | | |
| 2027 | 1,426 | | | |
| 2028 | 306 | | | |
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| Total minimum lease payments | 4,725 | | | |
| Less: imputed interest | (353) | | | |
| Total lease obligations | $ | 4,372 | | | |