LEASES

3 Months Ended

Mar. 31, 2025

NOTE 5 – LEASES

The Company has both operating and finance leases for land, buildings, machinery, vehicles and certain equipment. Our leases have remaining lease terms of 1 to 25 years, some of which include options to extend the lease agreements for up to 12 years. Our leases do not contain residual value guarantees. As of March 31, 2025, and December 31, 2024, assets recorded under finance leases were immaterial.

Operating lease expenses are classified as cost of product sales and selling, general and administrative on the Consolidated Statements of Operations. The components of lease expense were as follows:

	Three Months Ended March 31,
	2025			2024
Operating leases	$	3,452		$	3,087
Finance leases
Amortization of right of use (ROU) assets		122			103
Interest on lease liabilities		9			8
Short-term leases		61			26
Variable lease expense		119			144
Sublease income		(373	)		(205	)
Total lease expense	$	3,390		$	3,163

The weighted average remaining lease term and weighted average discount rate were as follows:

	March 31,
	2025			2024
Weighted average remaining lease term (in years)
Finance leases		3			3
Operating leases		12			13

Weighted average discount rate
Finance leases		2.16	%		1.25	%
Operating leases		5.42	%		5.41	%

Supplemental cash flow information related to leases was as follows:

	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Finance - Financing cash flows	$	259	$	225
Finance - Operating cash flows		9		8
Operating leases - Operating cash flows		3,434		2,928

Right of use assets obtained in exchange for lease obligations:
Operating leases		6,207		1,517
Finance leases		213		71
	$	6,420	$	1,588

Maturities of lease liabilities as of March 31, 2025, are as follows:

Years ending December 31:	Finance		Operating
2025⁽¹⁾	$	785	$	9,759
2026		746		11,050
2027		201		7,722
2028		194		6,637
2029		185		6,004
2030		69		5,871
Thereafter		6		50,714
Total lease payments		2,186		97,757
Less: imputed interest		97		30,897
Total lease liabilities	$	2,089	$	66,860

(1)

Excluding the three months ended March 31, 2025.