| LEASES |
LEASES Lease cost for the three and nine months ended September 30, 2025 and 2024 is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2025 | | 2024 | | 2025 | | 2024 | Operating lease cost (1) | $ | 1,562 | | | $ | 888 | | | $ | 3,708 | | | $ | 2,640 | | | Finance lease cost: | | | | | | | | | Amortization of right-of-use assets | 249 | | | 236 | | | 764 | | | 836 | | | Interest on lease liabilities | 117 | | | 129 | | | 369 | | | 399 | | | Total lease cost | $ | 1,928 | | | $ | 1,253 | | | $ | 4,841 | | | $ | 3,875 | | | | | | | | | | | Reported in: | | | | | | | | | Cost of goods sold | $ | 1,777 | | | $ | 1,112 | | | $ | 4,340 | | | $ | 3,435 | | | Selling, general and administrative expense | 151 | | | 141 | | | 501 | | | 440 | | | Total lease cost | $ | 1,928 | | | $ | 1,253 | | | $ | 4,841 | | | $ | 3,875 | |
(1)Operating lease cost does not include short-term leases or variable costs, all of which are immaterial. As of September 30, 2025, the weighted-average remaining lease terms of the Company’s operating leases and finance leases were approximately 8.2 years and 5.7 years, respectively, and the weighted-average discount rates applied were 7.0% and 7.5%, respectively. Supplemental cash flow information related to leases for the nine months ended September 30, 2025 and 2024 is as follows (in thousands): | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | | 2025 | | 2024 | | Cash paid for amounts included in the measurement of operating lease liabilities: | | | | | | Operating cash flows for operating leases | | $ | 3,363 | | | $ | 2,426 | | | Operating cash flows for finance leases | | 367 | | | 374 | | | Financing cash flows for finance leases | | 689 | | | 544 | | | Right-of-use assets obtained in exchange for new lease obligations: | | | | | | Operating leases | | $ | 16,215 | | | $ | 273 | | | Finance leases | | 633 | | | 790 | | | Net change in operating lease right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance | | $ | (56) | | | $ | (34) | |
As of September 30, 2025, the estimated future minimum payment obligations for non-cancelable operating and finance leases are as follows (in thousands): | | | | | | | | | | | | | | | | | Operating Leases | | Finance Leases | | Remainder of 2025 | | $ | 1,505 | | | $ | 297 | | | 2026 | | 5,739 | | | 1,198 | | | 2027 | | 5,650 | | | 1,146 | | | 2028 | | 4,911 | | | 1,806 | | | 2029 | | 4,563 | | | 952 | | | Thereafter | | 21,012 | | | 3,292 | | | Total lease payments | | 43,380 | | | 8,691 | | | Less: imputed interest | | 10,886 | | | 2,109 | | | Present value of lease liabilities | | $ | 32,494 | | | $ | 6,582 | |
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