Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company leases administrative, manufacturing, research, and distribution facilities through operating leases. Several leases include fixed payments, including rent and non-lease components such as common area or other maintenance costs.
The components of total operating lease expense are as follows:
Three Months Ended March 31,
(in thousands) 2025 2024
Operating lease costs
Operating lease costs
 $ 911  $ 909 
Short-term lease costs
 127  142 
Variable lease costs
 59  155 
Sublease income
 (269) — 
Total operating lease expense
 $ 828  $ 1,206 
Supplemental balance sheet information related to the operating and financing leases is as follows:
(in thousands, except lease term and discount rate)
 March 31, 2025 December 31, 2024
Operating Leases
Right-of-use operating assets $ 13,903  $ 14,265 
Current maturities of long-term lease obligations $ 2,078  $ 1,960 
Long-term lease obligations $ 18,612  $ 19,191 
Financing Leases
Right-of-use financing assets, net of accumulated amortization (1)
$ 34  $ 37 
Current maturities of long-term lease obligations $ 9  $ 9 
Long-term lease obligations $ 28  $ 30 
Weighted average operating lease term (in years): 8.6 8.8
Weighted average financing lease term (in years): 3.2 3.6
Weighted average discount rate - operating leases
 10.93%  10.95% 
Weighted average discount rate - financing leases
 13.91%  14.06% 
(1) Financing leases are included in Property and equipment, net on the Condensed Consolidated Balance Sheets.
Future minimum lease payments under operating and financing leases at March 31, 2025 are as follows:
(in thousands)
  
2025 (excluding the three months ended March 31, 2025) $ 3,119 
2026 4,284 
2027 3,120 
2028 3,119 
2029 3,187 
Thereafter 15,385 
Total 32,214 
Less: Imputed interest (11,487)
Total lease obligations
 20,727 
Less: Current maturities of long-term lease obligations
 (2,087)
Long-term lease obligations
 $ 18,640 
Lease modifications
The Company accounts for lease revisions as a lease modification in accordance with FASB ASC 842, Leases, when the modification effectively terminates the existing lease and creates a new lease. No lease modifications were recorded during the three months ended March 31, 2025 and 2024.
Sublease Agreement
The Company subleases portions of its headquarters building in Tampa, Florida under two sublease agreements with different sublessees. The first sublease term began August 1, 2024 and expires on October 31, 2031. The Company or the sublessee can terminate the sublease agreement after sixty-three months with twelve months written notice. There is no option to extend the sublease agreement. The second sublease term began on February 1, 2025 and expires on January 31, 2030. The sublessee can terminate the sublease agreement after thirty-six months with six months written notice. The Company accounts for these subleases in accordance with ASC 842, Leases.
Leases Leases
The Company leases administrative, manufacturing, research, and distribution facilities through operating leases. Several leases include fixed payments, including rent and non-lease components such as common area or other maintenance costs.
The components of total operating lease expense are as follows:
Three Months Ended March 31,
(in thousands) 2025 2024
Operating lease costs
Operating lease costs
 $ 911  $ 909 
Short-term lease costs
 127  142 
Variable lease costs
 59  155 
Sublease income
 (269) — 
Total operating lease expense
 $ 828  $ 1,206 
Supplemental balance sheet information related to the operating and financing leases is as follows:
(in thousands, except lease term and discount rate)
 March 31, 2025 December 31, 2024
Operating Leases
Right-of-use operating assets $ 13,903  $ 14,265 
Current maturities of long-term lease obligations $ 2,078  $ 1,960 
Long-term lease obligations $ 18,612  $ 19,191 
Financing Leases
Right-of-use financing assets, net of accumulated amortization (1)
$ 34  $ 37 
Current maturities of long-term lease obligations $ 9  $ 9 
Long-term lease obligations $ 28  $ 30 
Weighted average operating lease term (in years): 8.6 8.8
Weighted average financing lease term (in years): 3.2 3.6
Weighted average discount rate - operating leases
 10.93%  10.95% 
Weighted average discount rate - financing leases
 13.91%  14.06% 
(1) Financing leases are included in Property and equipment, net on the Condensed Consolidated Balance Sheets.
Future minimum lease payments under operating and financing leases at March 31, 2025 are as follows:
(in thousands)
  
2025 (excluding the three months ended March 31, 2025) $ 3,119 
2026 4,284 
2027 3,120 
2028 3,119 
2029 3,187 
Thereafter 15,385 
Total 32,214 
Less: Imputed interest (11,487)
Total lease obligations
 20,727 
Less: Current maturities of long-term lease obligations
 (2,087)
Long-term lease obligations
 $ 18,640 
Lease modifications
The Company accounts for lease revisions as a lease modification in accordance with FASB ASC 842, Leases, when the modification effectively terminates the existing lease and creates a new lease. No lease modifications were recorded during the three months ended March 31, 2025 and 2024.
Sublease Agreement
The Company subleases portions of its headquarters building in Tampa, Florida under two sublease agreements with different sublessees. The first sublease term began August 1, 2024 and expires on October 31, 2031. The Company or the sublessee can terminate the sublease agreement after sixty-three months with twelve months written notice. There is no option to extend the sublease agreement. The second sublease term began on February 1, 2025 and expires on January 31, 2030. The sublessee can terminate the sublease agreement after thirty-six months with six months written notice. The Company accounts for these subleases in accordance with ASC 842, Leases.