LEASES

12 Months Ended

Dec. 31, 2025

LEASES:

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 December 31, 2025, the Company did not have any finance leases and no additional operating leases that have not yet commenced.

The following table presents the Company’s operating lease cost and supplemental cash flow information related to the Company’s operating leases (in thousands):


	Year Ended December 31,
	2025		2024		2023
Operating lease cost	$	3,992	$	4,343	$	4,639
Non-cash activity:
Right-of-use assets obtained in exchange for lease obligations	$	4,979	$	—	$	1,072

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


	December 31,
	2025		2024
Right-of-use assets	$	19,925	$	19,867
Short-term lease liabilities		4,752		3,848
Long-term lease liabilities		19,217		19,135

For the years ended December 31, 2025 and 2024, the Company determined to record a right-of-use impairment of $1.6 million and $1.4 million, respectively, due to the closure of OVJP Corp's California location and related restructuring.

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


	December 31, 2025
Weighted average remaining lease term (in years)		5.2
Weighted average discount rate		3.9	%

As of December 31, 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 December 31, 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
2026	$	5,342
2027		5,310
2028		5,012
2029		3,628
2030		3,396
Thereafter		3,313
Total lease payments		26,001
Less: imputed interest		(1,758	)
Present value of lease payments	$	24,243