XML 34 R18.htm IDEA: XBRL DOCUMENT v3.22.4
Operating Leases
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Operating Leases Operating Leases
In January 2020, the Company entered into a 63-month non-cancelable lease for 302,880 square feet of warehouse space in New Albany, Ohio. The lease commenced on June 1, 2020. Total minimum lease payments are $7.9 million, net of rent abatement for an initial three-month period and with an annual escalation of 2.5%. The Company has the option to extend the lease term for a period of five years. The Company utilizes the reasonably certain threshold criteria in determining which options it will exercise.

In January 2022, the Company entered into a 62-month non-cancelable lease for 24,465 square feet of warehouse, distribution, and pharmacy space in Gilbert, Arizona. The lease commenced on September 1, 2022. Total minimum lease payments are $1.5 million, net of rent abatement for an initial two-month period and with annual escalation of 3.0%. The Company has the option to extend the lease term for a period of five years.

For the years ended December 31, 2022 and 2021, the Company recorded operating lease costs of $1.9 million and $1.8 million, respectively, including variable operating lease costs of $0.3 million in both years.

For the years ended December 31, 2022 and 2021, operating cash flows used for operating leases were $1.6 million and $1.5 million, respectively. As of December 31, 2022, the weighted average remaining lease term and weighted average discount rate was 3.2 years and 4.7%, respectively.

Future minimum lease payments under the Company's non-cancelable operating lease with an initial lease term in excess of one year subsequent to December 31, 2022 are as follows (in thousands):

2023$1,876 
20241,924 
20251,408 
2026303 
2027259 
Gross lease payments5,770 
Less: imputed interest(463)
Present value of net future minimum lease payments$5,307 
As of December 31, 2022, the present value of net future minimum lease payments of $5.3 million is recorded: (i) $1.7 million within the current liabilities; and (ii) $3.6 million within long-term liabilities on the consolidated balance sheet.