XML 27 R16.htm IDEA: XBRL DOCUMENT v3.25.1
Leases
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Leases Leases
The Company leases clinics, office buildings, and certain equipment under noncancellable financing and operating lease agreements that expire at various dates through June 2033.
The initial terms of operating leases range from 1 to 10 years and certain leases provide for free rent periods, periodic rent increases, and renewal options. Monthly payments for these leases range from $0 to $64. All lease agreements generally require the Company to pay maintenance, repairs, property taxes, and insurance costs, which are generally variable amounts based on actual costs incurred during each applicable period.
The Company has determined that periods covered by options to extend the Company's leases are excluded from the lease terms as it is not reasonably certain the Company will exercise such options.
Lease Expense
The components of lease expense were as follows for the three months ended March 31, 2025 and 2024:
(in thousands)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Operating lease costs:$2,268 $1,988 
Finance lease costs:
Amortization of ROU asset$10 $10 
Interest expense$2 $2 
Other lease costs:
Short-term lease costs$3 $— 
Variable lease costs$482 $361 
Operating and other lease costs are presented as part of selling, general, and administrative expenses. The components of finance lease costs appear in depreciation and amortization and interest expense.
Maturity of Lease Liabilities
The aggregate future lease payments for the Company's leases in years subsequent to March 31, 2025 are as follows:
(in thousands)Operating LeasesFinance Leases
2025 (remaining nine months)$6,349 $30 
20268,057 39 
20276,919 29 
20284,892 — 
20293,390 — 
Thereafter 3,556 — 
Total future lease payment$33,163 $98 
Less: amount representing interest (4,751)(7)
Present value of future lease payment (lease liabilities)$28,412 $91 
Reported as:
Lease liabilities, current$6,816 $36 
Lease liabilities, noncurrent21,596 55 
Total lease liabilities $28,412 $91 
Lease Term and Discount Rate
The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of March 31, 2025 and 2024:
March 31, 2025March 31, 2024
Weighted-average remaining lease term (in years)
Operating 4.485.14
Finance 2.443.29
Weighted-average discount rate
Operating6.62 %6.54 %
Finance6.69 %6.50 %
Supplemental Cash Flow Information
The following table provides certain cash flow and supplemental noncash information related to the Company's lease liabilities for the three months ended March 31, 2025 and 2024.
(in thousands)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
  Operating cash payment from operating leases$2,205 $2,042 
  Financing cash payments for finance leases12 — 
Lease liabilities arising from obtaining right-of-use assets:
  Operating leases$(37)$99 
  Finance leases— — 
Lease Modifications
During, the three months ended March 31, 2025 and 2024, the Company had no lease modifications.
Leases Leases
The Company leases clinics, office buildings, and certain equipment under noncancellable financing and operating lease agreements that expire at various dates through June 2033.
The initial terms of operating leases range from 1 to 10 years and certain leases provide for free rent periods, periodic rent increases, and renewal options. Monthly payments for these leases range from $0 to $64. All lease agreements generally require the Company to pay maintenance, repairs, property taxes, and insurance costs, which are generally variable amounts based on actual costs incurred during each applicable period.
The Company has determined that periods covered by options to extend the Company's leases are excluded from the lease terms as it is not reasonably certain the Company will exercise such options.
Lease Expense
The components of lease expense were as follows for the three months ended March 31, 2025 and 2024:
(in thousands)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Operating lease costs:$2,268 $1,988 
Finance lease costs:
Amortization of ROU asset$10 $10 
Interest expense$2 $2 
Other lease costs:
Short-term lease costs$3 $— 
Variable lease costs$482 $361 
Operating and other lease costs are presented as part of selling, general, and administrative expenses. The components of finance lease costs appear in depreciation and amortization and interest expense.
Maturity of Lease Liabilities
The aggregate future lease payments for the Company's leases in years subsequent to March 31, 2025 are as follows:
(in thousands)Operating LeasesFinance Leases
2025 (remaining nine months)$6,349 $30 
20268,057 39 
20276,919 29 
20284,892 — 
20293,390 — 
Thereafter 3,556 — 
Total future lease payment$33,163 $98 
Less: amount representing interest (4,751)(7)
Present value of future lease payment (lease liabilities)$28,412 $91 
Reported as:
Lease liabilities, current$6,816 $36 
Lease liabilities, noncurrent21,596 55 
Total lease liabilities $28,412 $91 
Lease Term and Discount Rate
The following table provides the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of March 31, 2025 and 2024:
March 31, 2025March 31, 2024
Weighted-average remaining lease term (in years)
Operating 4.485.14
Finance 2.443.29
Weighted-average discount rate
Operating6.62 %6.54 %
Finance6.69 %6.50 %
Supplemental Cash Flow Information
The following table provides certain cash flow and supplemental noncash information related to the Company's lease liabilities for the three months ended March 31, 2025 and 2024.
(in thousands)Three Months Ended March 31, 2025Three Months Ended March 31, 2024
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
  Operating cash payment from operating leases$2,205 $2,042 
  Financing cash payments for finance leases12 — 
Lease liabilities arising from obtaining right-of-use assets:
  Operating leases$(37)$99 
  Finance leases— — 
Lease Modifications
During, the three months ended March 31, 2025 and 2024, the Company had no lease modifications.