Operating Leases

3 Months Ended

Mar. 31, 2024

The Company has various operating leases for fulfillment and corporate facilities with lease periods expiring between fiscal years 2025 and 2027, not including renewal options the Company is reasonably certain to exercise. 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. In the first quarter of 2024, a reassessment was triggered due to signing a lease for a new facility which is in close proximity to and also acts as an operational expansion of an existing facility, as well as investment in leasehold improvements in the existing facility. This resulted in the remeasurement of the lease liability and an adjustment of $0.9 million to the carrying amount of the corresponding right-of-use (“ROU”) asset for the existing facility. In the fourth quarter of 2023, a reassessment of another of the Company’s leased facilities was triggered due to significant leasehold improvements. This 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 each of the three months ended March 31, 2024 and 2023, the Company recorded operating lease costs of $0.6 million, including variable operating lease costs of $0.1 million in each period.

For each of the three months ended March 31, 2024 and 2023, operating cash flows used for operating leases were $0.5 million. As of March 31, 2024, the weighted average remaining lease term and weighted average discount rate, including for renewal options the Company is reasonably certain to exercise, was 6.3 years and 8.9%, respectively.

Future minimum lease payments, including for renewal options the Company is reasonably certain to exercise, under the Company's non-cancelable operating leases with an initial lease term in excess of one year subsequent to March 31, 2024 are as follows (in thousands):


The remainder of 2024	$	1,876
2025	2,662
2026	2,685
2027	2,245
2028	2,015
2029 and thereafter	4,049
Gross lease payments	15,532
Less: imputed interest	(3,709)
Present value of net future minimum lease payments	$	11,823