The Company has entered into operating leases to facilitate the expansion of its manufacturing, research and development, and selling, general and administrative activities. For purposes of calculating operating lease liabilities, lease terms may be deemed to include options to extend or terminate the lease when those events are reasonably certain to occur. The interest rate implicit in lease contracts is typically not readily determinable and as such the Company uses the appropriate incremental borrowing rate based on information available at the lease commencement date in determining the present value of the lease payments. Current lease agreements do not contain any residual value guarantees or material restrictive covenants. As of June 30, 2025, the Company did not have any finance leases and had one additional operating lease that had not yet commenced.


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Operating lease cost	$	942	$	1,089	$	1,858	$	2,192
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	—	$	—	$	709	$	—

The following table presents the Company’s operating lease right-of-use assets and liabilities (in thousands):


	June 30, 2025		December 31, 2024
Right-of-use assets	$	19,067	$	19,867
Short-term lease liabilities		4,049		3,848
Long-term lease liabilities		17,789		19,135

The following table presents weighted average assumptions used to compute the Company’s right-of-use assets and lease liabilities:


	June 30, 2025
Weighted average remaining lease term (in years)		5.5
Weighted average discount rate		3.7	%

As of June 30, 2025, current operating leases had remaining terms between one and six years with options to extend the lease terms.

Undiscounted future minimum lease payments as of June 30, 2025, by year and in the aggregate, having non-cancelable lease terms in excess of one year were as follows (in thousands):


	Maturities of Operating Lease Liabilities
2025(1)	$	2,248
2026		4,546
2027		4,476
2028		4,185
2029		2,753
Thereafter		5,466
Total lease payments		23,674
Less: Imputed interest		(1,836	)
Present value of lease payments	$	21,838

(1)

Scheduled maturities of lease liabilities represent the period from July 1, 2025 to December 31, 2025.