Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

LEASES

12 Months Ended

Dec. 31, 2025

NOTE 19. LEASES

The Company has entered into leases for certain facilities, vehicles and other equipment. Our leases have remaining contractual terms of up to ten years, some of which include options to extend the leases for up to five years. Our lease costs are primarily related to facility leases for inventory warehousing, administration offices and vehicles. The Company’s finance leases are immaterial.

Lease ROU assets and liabilities as of December 31, 2025 and 2024, were as follows:


	Balance Sheet Classification	December 31, 2025		December 31, 2024

Assets
Lease ROU assets	Other long-term assets	$	11,477	$	13,825

Liabilities
Current lease liabilities	Accrued liabilities	$	3,021	$	3,470
Noncurrent lease liabilities	Other long-term liabilities	$	9,266	$	11,288

Lease costs were as follows:


	Affected line item in the Consolidated	Year Ended
	Statements of Comprehensive Loss	December 31, 2025		December 31, 2024
Lease costs	Cost of goods sold, Selling, general and administrative	$	3,712	$	3,956
Variable lease costs	Cost of goods sold, Selling, general and administrative		1,877		900
Short-term lease costs	Cost of goods sold, Selling, general and administrative		438		635
		$	6,027	$	5,491

The maturity of lease liabilities as of December 31, 2025 are as follows:


Years Ending December 31,	Lease Payments
2026	$	3,505
2027		2,786
2028		2,807
2029		2,657
2030		1,097
Thereafter		804
Total future lease payments		13,656
Less: amount representing interest		(1,369)
Present value of future lease payments		12,287
Less: current lease obligations		(3,021)
Long-term lease obligations	$	9,266

As of December 31, 2025, our leases have a weighted-average remaining lease term of 4.67 years and a weighted-average discount rate of 4.42%.