Operating Leases

12 Months Ended

Dec. 31, 2023

The Company has various operating leases for fulfillment and corporate facilities with lease periods expiring between fiscal years 2025 and 2027. The operating lease agreements provide for rental payments on a graduated basis and for options to renew, which could increase future minimum lease payments if exercised. The Company utilizes the reasonably certain threshold criteria in determining which options it will exercise. During the year ended December 31, 2023, a reassessment due to significant leasehold improvements to the Company’s leased facilities resulted in the remeasurement of the lease liability and an adjustment of $5.7 million to the carrying amount of the corresponding ROU asset.

For the years ended December 31, 2023, 2022, and 2021, the Company recorded operating lease costs of $2.4 million, $1.9 million, and $1.8 million, respectively, including variable operating lease costs of $0.4 million for the year ended December 31, 2023 and $0.3 million for each of the years ended December 31, 2022 and 2021.

For the years ended December 31, 2023, 2022 and 2021, operating cash flows used for operating leases were $1.9 million, $1.6 million, and $1.5 million, respectively. As of December 31, 2023, the weighted average remaining lease term and weighted average discount rate were 6.2 years and 8.9%, 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, 2023 are as follows (in thousands):


2024	$	2,114
2025	2,207
2026	2,219
2027	1,955
2028	1,696
2029 and thereafter	2,827
Gross lease payments	13,018
Less: imputed interest	(3,070)
Present value of net future minimum lease payments	$	9,948