Quarterly report [Sections 13 or 15(d)]

Leases

v3.25.3
Leases
 9 Months Ended
Sep. 30, 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 for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2025 2024 2025 2024
Operating lease costs $ 919  $ 919  $ 2,749  $ 2,745 
Short-term lease costs 158  135  420  510 
Variable lease costs 65  129  113  418 
Sublease income (269) —  (810) — 
Total operating lease expense $ 873  $ 1,183  $ 2,472  $ 3,673 
Supplemental balance sheet information related to the operating and financing leases is as follows as of the periods indicated:
(in thousands, except lease term and discount rate) September 30, 2025 December 31, 2024
Operating Leases
Right-of-use operating assets $ 13,137  $ 14,265 
Current maturities of long-term lease obligations $ 2,326  $ 1,960 
Long-term lease obligations $ 17,393  $ 19,191 
Financing Leases
Right-of-use financing assets, net of accumulated amortization (1)
$ 29  $ 37 
Current maturities of long-term lease obligations $ 10  $ 9 
Long-term lease obligations $ 23  $ 30 
Weighted average operating lease term:
 8.3 years 8.8 years
Weighted average financing lease term:
 2.7 years 3.6 years
Weighted average discount rate - operating leases
 10.89% 10.95%
Weighted average discount rate - financing leases
 13.94% 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 as of September 30, 2025 are as follows:
(in thousands)
2025 (excluding the nine months ended September 30, 2025) $ 1,054 
2026 4,284 
2027 3,120 
2028 3,119 
2029 3,187 
Thereafter 15,385 
Total 30,149 
Less: Imputed interest (10,397)
Total lease obligations 19,752 
Less: Current maturities of long-term lease obligations
 (2,336)
Long-term lease obligations $ 17,416 
Lease Modifications
The Company accounts for lease revisions as a lease modification in accordance with FASB Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), when the modification effectively terminates the existing lease and creates a new lease. No lease modifications were recorded during the three and nine months ended September 30, 2025 and 2024.
Sublease Agreements
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
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 for the periods indicated:
Three Months Ended September 30, Nine Months Ended September 30,
(in thousands) 2025 2024 2025 2024
Operating lease costs $ 919  $ 919  $ 2,749  $ 2,745 
Short-term lease costs 158  135  420  510 
Variable lease costs 65  129  113  418 
Sublease income (269) —  (810) — 
Total operating lease expense $ 873  $ 1,183  $ 2,472  $ 3,673 
Supplemental balance sheet information related to the operating and financing leases is as follows as of the periods indicated:
(in thousands, except lease term and discount rate) September 30, 2025 December 31, 2024
Operating Leases
Right-of-use operating assets $ 13,137  $ 14,265 
Current maturities of long-term lease obligations $ 2,326  $ 1,960 
Long-term lease obligations $ 17,393  $ 19,191 
Financing Leases
Right-of-use financing assets, net of accumulated amortization (1)
$ 29  $ 37 
Current maturities of long-term lease obligations $ 10  $ 9 
Long-term lease obligations $ 23  $ 30 
Weighted average operating lease term:
 8.3 years 8.8 years
Weighted average financing lease term:
 2.7 years 3.6 years
Weighted average discount rate - operating leases
 10.89% 10.95%
Weighted average discount rate - financing leases
 13.94% 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 as of September 30, 2025 are as follows:
(in thousands)
2025 (excluding the nine months ended September 30, 2025) $ 1,054 
2026 4,284 
2027 3,120 
2028 3,119 
2029 3,187 
Thereafter 15,385 
Total 30,149 
Less: Imputed interest (10,397)
Total lease obligations 19,752 
Less: Current maturities of long-term lease obligations
 (2,336)
Long-term lease obligations $ 17,416 
Lease Modifications
The Company accounts for lease revisions as a lease modification in accordance with FASB Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”), when the modification effectively terminates the existing lease and creates a new lease. No lease modifications were recorded during the three and nine months ended September 30, 2025 and 2024.
Sublease Agreements
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.