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LEASES

12 Months Ended

Dec. 31, 2024

10. LEASES

In the U.S., the Company owns its two main operating facilities located in Exton, Pennsylvania. In addition to the owned facilities, the Company also has operations in other locations that are leased, as well as other leased assets. In conjunction with the guidance for leases, as defined by FASB ASC Topic 842, Leases, the Company has described the existing leases, which are all classified as operating leases, pursuant to the below.

In the U.S., the Company leases a facility in West Chester, Pennsylvania, which was consummated effective January 2024, with its lease terminating in February 2030, which provides warehousing and storage, quality control, distribution, and office space. The Company also leases a facility in Houston, Texas, which was consummated effective June 2024, with its lease terminating in July 2029, which provides manufacturing, stocking, and sales operations. Additionally, the Company leases office space in Middletown, Connecticut, with its lease terminating in June 2027.

In the U.K., the Company leases a facility in Banbury, England, which serves manufacturing, warehousing, and other operational functions. The lease in Banbury has a 15-year term ending in March 2036.

In addition to property rentals, the Company also has lease agreements in place for various fleet vehicles and equipment with various lease terms.

As of December 31, 2024, the Company recorded right-of-use assets of $4,944,000, and a lease liability of $5,278,000, of which $712,000 is reported as a current liability. On December 31, 2023, the Company recorded right-of-use assets of $2,940,000, and a lease liability of $2,946,000, of which $454,000 was reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 7.8 years and 3.74% as of December 31, 2024.

Rent expense for operating leases was $939,000 and $467,000 for the years ended December 31, 2024 and 2023, respectively.

Future minimum lease payments under non-cancelable leases as of December 31, 2024 are as follows:

Twelve Months Ending December 31,	Operating Leases
		(in thousands)

2025	$	897
2026		894
2027		834
2028		795
2029		729
Thereafter		1,791
Total Future Minimum Lease Payments		5,940
Less: Interest		662
Lease Liability		5,278
Less: Current Portion of Lease Liability		712
Lease Liability – Net of Current Portion	$	4,566