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LEASES

9 Months Ended

Sep. 30, 2025

8. 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 2031, which provides warehousing and storage, quality control, distribution, and office space. The Company also leases a facility in Houston, Texas, which was consummated effective September 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 September 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 September 30, 2025, the Company recorded right-of-use assets of $4,613,000, and a lease liability of $4,938,000, of which $763,000 is reported as a current liability. On 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 was reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 7.3 years and 3.62% as of September 30, 2025.

Rent expense for operating leases was $238,000 and $706,000 for the three and nine months ended September 30, 2025 and $272,000 and $679,000 for the three and nine months ended September 30, 2024.

Future minimum lease payments under non-cancelable leases as of September 30, 2025 are as follows:

Twelve Months Ending September 30,	Operating Leases
		(in thousands)
2026	$	926
2027		890
2028		815
2029		792
2030		628
Thereafter		1,412
Total Future Minimum Lease Payments		5,463
Less: Interest		525
Lease Liability		4,938
Less: Current Portion of Lease Liability		763
Lease Liability – Net of Current Portion	$	4,175