Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

The Company primarily leases manufacturing facilities, distribution centers and office spaces with lease terms expiring through 2031. The following table summarizes the Company's lease costs in the accompanying consolidated statement of income:

	Year Ended December 31,
	2023		2022
	(in thousands)
Operating lease expense	$	6,171	$	4,522
Short-term lease expense	314		311
Variable lease expense	1,130		817
Total lease expense	$	7,615	$	5,650

For the year ended December 31, 2023 and 2022, total lease expense included in operating expenses was $6,541,000 and $4,574,000, respectively, and total lease expense included in cost of goods sold was $1,074,000 and $1,076,000, respectively.

The following table presents supplemental information related to operating leases:

	December 31, 2023			December 31, 2022
	(in thousands, except lease term and discount rate)
Weighted average remaining lease term	4.51 years			4.27 years
Weighted average discount rate	6.2		%	5.3		%
Right-of-use assets obtained in exchange for operating lease liabilities	$	9,995		$	10,727
Cash paid for amounts included in measurement of lease obligations:
Operating cash flows from operating leases	$	5,768		$	4,481

As of December 31, 2023, future lease payments under operating lease were as follows:

	(in thousands)
2024	$	5,980
2025	5,113
2026	5,276
2027	3,993
2028	2,575
Thereafter	1,988
Total future lease payments	24,925
Less: imputed interest	(3,438)
Total lease liability balance	$	21,487

In September 2020, Global Wells entered into an operating lease agreement with an unrelated party as the landlord for a term of 38 months beginning September 9, 2020. The lease was extended for a period of two additional years beginning November 1, 2023, and generates monthly rental payments from $62,000 to $65,000.

Sublease income for the year ended year ended December 31, 2023 and 2022 was $76,000 and $0, respectively. Sublease income is included in rental income in the accompanying consolidated statements of income. The expected rental income is $786,000 and $616,000 for the year ended December 31, 2024, and 2025, respectively.