Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases
Note K – Leases
The Company has entered into and acquired long-term leasing arrangements for the right to use various classes of underlying assets, including facilities, vehicles and office equipment. Certain facility leases contain predetermined fixed escalation of minimum rents at stated rates ranging from 2.00% to 25.00% per annum and three leases with annual escalations based on certain price indices. In
addition, certain facility leases include renewal options that could extend the lease term for up to an additional fifteen years. The office equipment lease contains a renewal option that could extend the lease to consecutive 60-day terms and a purchase option.

Total Lease Costs
The following table summarizes total lease costs for the period:
Year Ended
December 31, 2024 December 31, 2023
Finance lease cost:
Amortization of ROU assets $ 518  $ 434 
Interest on lease liabilities 122  98 
Operating lease costs 4,637  4,251 
Variable lease costs 48  29 
Short-term lease costs 475  230 
Total lease costs $ 5,800  $ 5,042 
Total lease costs are included in selling, general and administrative expenses and cost of sales on the consolidated statements of operations and comprehensive income (loss).

There was no impairment recognized related to ROU assets during the year ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company had two facility leases that had not yet commenced but require significant future lease obligations in the amount of $3.8 million. The contracts were determined to be operating leases, whereby the Company is not required to make rent payments prior to the lease commencement date while construction is completed on the underlying asset. Due to the nature of the work and the amount of the Company’s contribution to the construction period costs for each lease, the Company was determined not to be the owner of the assets under construction as the landlords have substantially all of the construction period risks.

Supplemental Balance Sheet Information
The following table presents supplemental balance sheet information related to the Company’s operating and finance leases:
December 31, 2024 December 31, 2023
Operating Leases Finance Leases Operating Leases Finance Leases
Right-of-use assets, net reflected in the following balance sheet line items:
Property, plant and equipment, net
$ —  $ 1,392  $ —  $ 1,551 
Right-of-use assets 15,277  —  13,181  — 
Total right-of-use assets
 $ 15,277  $ 1,392  $ 13,181  $ 1,551 
Current lease balance reflected in the following balance sheet line items:
Short-term operating lease liabilities $ 4,354  $ —  $ 3,737  $ — 
Short-term finance lease liabilities —  473  —  439 
Non-current lease balance reflected in the following balance sheet line items:
Long-term operating lease liabilities 13,444  —  12,302  — 
Long-term finance lease liabilities —  980  —  1,137 
Total lease liabilities $ 17,798  $ 1,453  $ 16,039  $ 1,576 
Other Supplemental Information
The following table presents other supplemental information related to the Company’s leases:
Year Ended
December 31, 2024 December 31, 2023
Operating Leases Finance Leases Operating Leases Finance Leases
Cash paid for lease liabilities $ 2,460  $ 601  $ 4,273  $ 492 
Right-of-use assets obtained in exchange for new lease liabilities 5,813  457  3,418  1,167 
Weighted average remaining lease term (in years) 4.0 3.3 4.4 3.8
Weighted average discount rate 7.8  % 8.1  % 6.3  % 8.4  %

Future Lease Obligations
As of December 31, 2024, the future annual minimum lease payments for lease liabilities are as follows:
Year Operating Leases Finance Leases
2025 $ 5,485  $ 571 
2026 4,545  462 
2027 4,366  382 
2028 2,861  218 
2029 1,836  42 
Thereafter
 2,858  — 
Total lease payments
 21,951  1,675 
Less: imputed interest 4,153  222 
Present value of lease liabilities
 $ 17,798  $ 1,453 
Leases
Note K – Leases
The Company has entered into and acquired long-term leasing arrangements for the right to use various classes of underlying assets, including facilities, vehicles and office equipment. Certain facility leases contain predetermined fixed escalation of minimum rents at stated rates ranging from 2.00% to 25.00% per annum and three leases with annual escalations based on certain price indices. In
addition, certain facility leases include renewal options that could extend the lease term for up to an additional fifteen years. The office equipment lease contains a renewal option that could extend the lease to consecutive 60-day terms and a purchase option.

Total Lease Costs
The following table summarizes total lease costs for the period:
Year Ended
December 31, 2024 December 31, 2023
Finance lease cost:
Amortization of ROU assets $ 518  $ 434 
Interest on lease liabilities 122  98 
Operating lease costs 4,637  4,251 
Variable lease costs 48  29 
Short-term lease costs 475  230 
Total lease costs $ 5,800  $ 5,042 
Total lease costs are included in selling, general and administrative expenses and cost of sales on the consolidated statements of operations and comprehensive income (loss).

There was no impairment recognized related to ROU assets during the year ended December 31, 2024 and 2023, respectively.

As of December 31, 2024, the Company had two facility leases that had not yet commenced but require significant future lease obligations in the amount of $3.8 million. The contracts were determined to be operating leases, whereby the Company is not required to make rent payments prior to the lease commencement date while construction is completed on the underlying asset. Due to the nature of the work and the amount of the Company’s contribution to the construction period costs for each lease, the Company was determined not to be the owner of the assets under construction as the landlords have substantially all of the construction period risks.

Supplemental Balance Sheet Information
The following table presents supplemental balance sheet information related to the Company’s operating and finance leases:
December 31, 2024 December 31, 2023
Operating Leases Finance Leases Operating Leases Finance Leases
Right-of-use assets, net reflected in the following balance sheet line items:
Property, plant and equipment, net
$ —  $ 1,392  $ —  $ 1,551 
Right-of-use assets 15,277  —  13,181  — 
Total right-of-use assets
 $ 15,277  $ 1,392  $ 13,181  $ 1,551 
Current lease balance reflected in the following balance sheet line items:
Short-term operating lease liabilities $ 4,354  $ —  $ 3,737  $ — 
Short-term finance lease liabilities —  473  —  439 
Non-current lease balance reflected in the following balance sheet line items:
Long-term operating lease liabilities 13,444  —  12,302  — 
Long-term finance lease liabilities —  980  —  1,137 
Total lease liabilities $ 17,798  $ 1,453  $ 16,039  $ 1,576 
Other Supplemental Information
The following table presents other supplemental information related to the Company’s leases:
Year Ended
December 31, 2024 December 31, 2023
Operating Leases Finance Leases Operating Leases Finance Leases
Cash paid for lease liabilities $ 2,460  $ 601  $ 4,273  $ 492 
Right-of-use assets obtained in exchange for new lease liabilities 5,813  457  3,418  1,167 
Weighted average remaining lease term (in years) 4.0 3.3 4.4 3.8
Weighted average discount rate 7.8  % 8.1  % 6.3  % 8.4  %

Future Lease Obligations
As of December 31, 2024, the future annual minimum lease payments for lease liabilities are as follows:
Year Operating Leases Finance Leases
2025 $ 5,485  $ 571 
2026 4,545  462 
2027 4,366  382 
2028 2,861  218 
2029 1,836  42 
Thereafter
 2,858  — 
Total lease payments
 21,951  1,675 
Less: imputed interest 4,153  222 
Present value of lease liabilities
 $ 17,798  $ 1,453