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Note 7 - Leases

6 Months Ended

Jun. 30, 2026

7.	Leases

The Company has operating leases for manufacturing and upfit facilities, land and parking lots, warehousing space and certain equipment. The leases have remaining lease terms of less than one year to 13 years, some of which include options to extend the leases for up to 20 years. Such renewal options were not included in the determination of the lease term unless deemed reasonably certain of exercise. The discount rate used in measuring the lease liabilities is based on the Company’s interest rate on the term loan facility under its secured Agreement. Certain of the Company’s leases contain escalating rental payments based on an index. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Lease Expense

The components of lease expense, which are included in Cost of sales and Selling, general and administrative expenses on the Condensed Consolidated Statements of Operations and Comprehensive Income, were as follows:

	*Three Months Ended June 30, 2026*		*Six Months Ended June 30, 2026*		*Three Months Ended June 30, 2025*		*Six Months Ended June 30, 2025*
Operating lease expense	$	4,335	$	7,838	$	3,274	$	6,543
Short term lease cost	$	30	$	161	$	156	$	279
Total lease cost	$	4,365	$	7,999	$	3,430	$	6,822

Cash Flow

Supplemental cash flow information related to leases is as follows:

	*Six Months Ended June 30, 2026*		*Six Months Ended June 30, 2025*

Cash paid for amounts included in the measurement of operating lease liabilities	$	6,589	$	6,104
Non-cash lease expense - right-of-use assets	$	5,213	$	4,142
Right-of-use assets obtained in exchange for operating lease obligations	$	28,175	$	397

Balance Sheet

Supplemental balance sheet information related to leases is as follows:

	*June 30, 2026*			*December 31, 2025*
Operating Leases
Operating lease right-of-use assets	$	90,364		$	68,972

Other current liabilities		9,783			7,154
Operating lease liabilities		80,024			60,134
Total operating lease liabilities	$	89,807		$	67,288

Weighted Average Remaining Lease Term
Operating leases (in months)		124			144

Weighted Average Discount Rate
Operating leases		6.65	%		7.10	%

Lease Maturities

Maturities of leases were as follows:

Year ending December 31,	*Operating Leases*
2026 (excluding the six months ended June 30, 2026)	$	7,619
2027		14,954
2028		14,091
2029		13,464
2030		12,151
Thereafter		63,692
Total Lease Payments		125,971
Less: imputed interest		(36,164	)
Total	$	89,807