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

Leases

v3.25.4
Leases
 12 Months Ended
Dec. 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 and sublease income are as follows for the periods presented:
Years Ended December 31,
(in thousands) 2025 2024 2023
Operating lease costs $ 3,709  $ 3,664  $ 3,316 
Short term lease costs 62  576  520 
Variable lease costs 1,419  610  1,438 
Total operating lease expense $ 5,190  $ 4,850  $ 5,274 
Sublease income $ 1,081  $ 225  $ — 
Supplemental balance sheet information related to the operating and financing leases is as follows as of the periods presented:
(dollars in thousands) December 31, 2025 December 31, 2024
Operating Leases
Right-of-use operating lease assets $ 12,732  $ 14,265 
Current maturities of long-term lease obligations $ 2,354  $ 1,960 
Long-term lease obligations $ 16,838  $ 19,191 
Financing Leases
Right-of-use finance lease assets, net of accumulated amortization (1)
$ 44  $ 37 
Current maturities of long-term lease obligations $ 18  $ 9 
Long-term lease obligations $ 32  $ 30 
Weighted average remaining lease term - operating leases 8.1 years 8.8 years
Weighted average remaining lease term - finance leases 1.8 years 3.6 years
Weighted average discount rate - operating leases 10.87  % 10.95  %
Weighted average discount rate - finance leases 8.01  % 14.06  %
__________
(1)Financing leases are included in Property and equipment, net on the Consolidated Balance Sheets.
Future minimum lease payments under operating and financing leases as of December 31, 2025 are as follows:
Years ending December 31, (in thousands)
2026 $ 4,294 
2027 3,130 
2028 3,122 
2029 3,187 
2030 3,100 
Thereafter 12,285 
Total 29,118 
Less: Imputed interest (9,876)
Total lease obligations 19,242 
Less: Current maturities of long-term obligations (2,372)
Long-term lease obligations $ 16,870 
Lease modifications
The Company accounts for lease revisions as a lease modification when the modification effectively terminates the existing lease and creates a new lease. No lease modifications were recorded during the years ended December 31, 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 63 months with 12 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 36 months with six months written notice.
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 and sublease income are as follows for the periods presented:
Years Ended December 31,
(in thousands) 2025 2024 2023
Operating lease costs $ 3,709  $ 3,664  $ 3,316 
Short term lease costs 62  576  520 
Variable lease costs 1,419  610  1,438 
Total operating lease expense $ 5,190  $ 4,850  $ 5,274 
Sublease income $ 1,081  $ 225  $ — 
Supplemental balance sheet information related to the operating and financing leases is as follows as of the periods presented:
(dollars in thousands) December 31, 2025 December 31, 2024
Operating Leases
Right-of-use operating lease assets $ 12,732  $ 14,265 
Current maturities of long-term lease obligations $ 2,354  $ 1,960 
Long-term lease obligations $ 16,838  $ 19,191 
Financing Leases
Right-of-use finance lease assets, net of accumulated amortization (1)
$ 44  $ 37 
Current maturities of long-term lease obligations $ 18  $ 9 
Long-term lease obligations $ 32  $ 30 
Weighted average remaining lease term - operating leases 8.1 years 8.8 years
Weighted average remaining lease term - finance leases 1.8 years 3.6 years
Weighted average discount rate - operating leases 10.87  % 10.95  %
Weighted average discount rate - finance leases 8.01  % 14.06  %
__________
(1)Financing leases are included in Property and equipment, net on the Consolidated Balance Sheets.
Future minimum lease payments under operating and financing leases as of December 31, 2025 are as follows:
Years ending December 31, (in thousands)
2026 $ 4,294 
2027 3,130 
2028 3,122 
2029 3,187 
2030 3,100 
Thereafter 12,285 
Total 29,118 
Less: Imputed interest (9,876)
Total lease obligations 19,242 
Less: Current maturities of long-term obligations (2,372)
Long-term lease obligations $ 16,870 
Lease modifications
The Company accounts for lease revisions as a lease modification when the modification effectively terminates the existing lease and creates a new lease. No lease modifications were recorded during the years ended December 31, 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 63 months with 12 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 36 months with six months written notice.