| LEASES |
LEASES The following table presents assets and liabilities for leases as of December 31, 2025 and 2024 (in thousands): | | | | | | | | | | | | | 2025 | | 2024 | | Assets | | | | | Operating lease right-of-use assets | $ | 30,152 | | | $ | 17,298 | | | Finance lease right-of-use assets | 5,713 | | | 6,173 | | | Total lease assets | $ | 35,865 | | | $ | 23,471 | | | | | | | Liabilities | | | | | Operating lease liabilities: | | | | | Current (included in accrued expenses and other current liabilities) | $ | 3,663 | | | $ | 2,677 | | | Non-current | 27,860 | | | 15,540 | | | Total operating lease liabilities | 31,523 | | | 18,217 | | | | | | | Finance lease liabilities: | | | | | Current (included in accrued expenses and other current liabilities) | 753 | | | 732 | | | Non-current | 5,694 | | | 6,013 | | | Total finance lease liabilities | 6,447 | | | 6,745 | | | | | | | Total lease liabilities | $ | 37,970 | | | $ | 24,962 | |
Lease cost for the years ended December 31, 2025 and 2024 are as follows (in thousands): | | | | | | | | | | | | | 2025 | | 2024 | Operating lease cost (1) | $ | 5,340 | | | $ | 3,463 | | | Finance lease cost: | | | | | Amortization of right-of-use assets | 1,031 | | | 1,080 | | | Interest on lease liabilities | 490 | | | 527 | | | Total lease cost | $ | 6,861 | | | $ | 5,070 | | | | | | | Reported in: | | | | | Cost of goods sold | $ | 6,183 | | | $ | 4,484 | | | Selling, general and administrative expense | 678 | | | 586 | | | Total lease cost | $ | 6,861 | | | $ | 5,070 | |
(1)Operating lease cost does not include short-term leases or variable costs, all of which are immaterial. As of December 31, 2025 the weighted-average remaining lease term of operating and finance leases were approximately 8.1 years and 5.4 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 years ended December 31, 2025 and 2024 are as follows (in thousands): | | | | | | | | | | | | | 2025 | | 2024 | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | Operating cash flows for operating leases | $ | 4,867 | | | $ | 3,278 | | | Operating cash flows for finance leases | 489 | | | 501 | | | Financing cash flows for finance leases | 875 | | | 740 | | | Right-of-use assets obtained in exchange for new lease obligations: | | | | | Operating leases | $ | 16,215 | | | $ | 3,479 | | | Finance leases | 685 | | | 884 | | | Net change in operating right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance | $ | (56) | | | $ | (34) | |
As of December 31, 2025, the estimated future minimum payment obligations for non-cancelable operating leases and finance leases are as follows (in thousands): | | | | | | | | | | | | | | | Years Ending December 31, | | Operating Leases | | Finance Leases | | 2026 | | $ | 5,745 | | | $ | 1,209 | | | 2027 | | 5,657 | | | 1,157 | | | 2028 | | 4,917 | | | 1,828 | | | 2029 | | 4,569 | | | 952 | | | 2030 | | 4,110 | | | 552 | | | Thereafter | | 16,875 | | | 2,741 | | | Total lease payments | | 41,873 | | | 8,439 | | | Less: imputed interest | | (10,350) | | | (1,992) | | | Present value of lease liabilities | | $ | 31,523 | | | $ | 6,447 | |
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