Leases
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | |
| | | |
| December 31, |
| (in thousands) | 2025 | | 2024 |
| Operating lease assets | $ | 2,836 | | | $ | 2,993 | |
| | | |
| Current operating lease liabilities | $ | 1,155 | | | $ | 1,287 | |
| Long-term operating lease liabilities | 1,606 | | | 1,633 | |
| Total operating lease liabilities | $ | 2,761 | | | $ | 2,920 | |
| | | |
| | | |
| Finance lease assets | $ | 424 | | | $ | 692 | |
| | | |
| Current finance lease liabilities | $ | 286 | | | $ | 309 | |
| Long-term finance lease liabilities | — | | | 287 | |
| Total finance lease liabilities | $ | 286 | | | $ | 596 | |
| | | |
Lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred. The components of lease expense for the periods reported were as follows:
| | | | | | | | | | | |
| | | |
| Twelve Months Ended December 31, |
| (in thousands) | 2025 | | 2024 |
| Operating lease cost | $ | 1,763 | | | $ | 1,762 | |
| Finance lease cost: | | | |
| Amortization of right-of-use assets | $ | 329 | | | $ | 329 | |
| Interest on lease obligations | 20 | | | 33 | |
| Variable lease cost | $ | 534 | | | $ | 382 | |
| Total lease cost | $ | 2,646 | | | $ | 2,506 | |
| | | |
Maturities of operating and finance lease liabilities as of December 31, 2025 were as follows:
| | | | | | | | | | | |
| | | |
| (in thousands) | Operating Leases | | Finance Leases |
| Year Ending December 31, | | | |
| 2026 | $ | 1,238 | | | $ | 292 | |
| 2027 | 899 | | | — | |
| 2028 | 634 | | | — | |
| 2029 | 116 | | | — | |
| 2030 | 2 | | | — | |
| After 2030 | — | | | — | |
| Total future minimum lease payments | 2,889 | | | 292 | |
| Less interest | (128) | | | (6) | |
| Present value of lease liabilities | $ | 2,761 | | | $ | 286 | |
| | | |
As of December 31, 2025, we have no operating or finance leases that have not yet commenced.
Weighted average remaining lease term and discount rate was as follows:
| | | | | | | | | | | |
| | | |
| December 31, |
| 2025 | | 2024 |
| Weighted Average Remaining Lease Term - operating leases (years) | 2.7 | | 3.0 |
| Weighted Average Remaining Lease Term - finance leases (years) | 0.6 | | 1.6 |
| Weighted Average Discount Rate - operating leases | 3.4% | | 2.6% |
| Weighted Average Discount Rate - finance leases | 4.4% | | 4.4% |
| | | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | |
| | | |
| Twelve Months Ended December 31, |
| (in thousands) | 2025 | | 2024 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | |
| Operating cash flows from operating leases | $ | 2,365 | | | $ | 2,093 | |
| Operating cash flows from finance leases | $ | 20 | | | $ | 33 | |
| Financing cash flows from finance leases | $ | 309 | | | $ | 296 | |
| | | |
| Lease assets obtained in exchange for new operating lease liabilities | $ | — | | | $ | — | |
| Lease assets obtained in exchange for new financing lease liabilities | $ | — | | | $ | — | |
| | | |
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.