This footnote was corrected in this Amended Report to clarify the discount rate used for our leases.

We lease facilities related to sales and service, manufacturing, reconditioning, certain office spaces, apartments and warehouse, all of which we classify as operating leases. In addition, we also lease certain office equipment and vehicles, which we classify as financing leases. Leases with an initial term of 12 months or less are not recorded on the Company’s consolidated balance sheets; short-term lease expense for the twelve months ended December 31, 2023 and 2022 was approximately $1.7 million and $0.6 million, respectively.

Most leases include one or more options to renew, with renewal terms that can extend the lease term on a monthly, annual or longer basis. The exercise of lease renewal options is at the Company’s sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term unless there is a transfer of title or purchase option that is reasonably certain of being exercised.

Certain lease agreements include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.


		December 31, 2023		December 31, 2022
	Classification	(In thousands)
Assets
Operating	Operating lease right of use assets	$	16,343	$	4,872
Finance	Other assets		1,086		132
Total lease assets		$	17,429	$	5,004

Liabilities
Current
Operating	Operating lease liabilities	$	2,118	$	1,054
Finance	Other accrued liabilities		188		43

Noncurrent
Operating	Operating lease liabilities, long-term		14,554		3,807
Finance	Other long-term liabilities		915		98
Total lease liabilities		$	17,775	$	5,002

The Company uses the rate implicit in the lease if it is readily determinable. In the case that the lease does not provide an implicit rate, we use our incremental borrowing rate.

Our lease costs are as follows:


		Twelve Months Ended
		December 31, 2023		December 31, 2022		December 31, 2021
		(In thousands)
	Classification
Operating lease cost	Selling, general and administrative	$	2,701	$	1,910	$	1,602
Short-term lease costs	Selling, general and administrative		1,654		621		1,296
Amortization of leased assets	Selling, general and administrative		145		86		114
Interest on lease liabilities	Net interest expense		41		11		59
Total lease cost		$	4,541	$	2,628	$	3,071

The Company leases certain offices, shop and warehouse facilities, automobiles and equipment. Total lease expense incurred was $4.4 million, $2.5 million, and $2.9 million in 2023, 2022 and 2021, respectively. The five year and beyond maturity of our lease obligations is presented below:


	Twelve months ended
	December 31, 2023
	Operating		Finance
	Leases		Leases		Total
	(In thousands)
2024	$	2,993	$	363	$	3,356
2025		2,789		341		3,130
2026		2,547		345		2,892
2027		2,450		214		2,664
2028		2,119		-		2,119
After 2028		11,169		-		11,169
Total lease payments		24,067		1,263		25,330
Less: interest		7,395		160		7,555
Present value of lease liabilities	$	16,672	$	1,103	$	17,775

The lease term and discount rate for our operating and finance leases is as follows:


	December 31, 2023
Weighted average remaining lease term (years)
Operating leases		9.9
Finance leases		3.6

Weighted average discount rate
Operating leases		8.1	%
Finance leases		8.9	%

We had no material non-cash financing or operating leases entered into during the twelve months ended December 31, 2023.

Other information pertaining to our lease obligations is as follows:


	December 31, 2023		December 31, 2022		December 31, 2021
	(In thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	2,356	$	1,949	$	1,591
Operating cash flows from finance leases		42		11		59
Financing cash flows from finance leases		124		83		109