Leases

3 Months Ended

Mar. 31, 2024

8. Leases

The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2029.

Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The Company determines if an arrangement is an operating lease at inception. Leases with an initial term of 12 months or less are not recorded on the balance sheet. All other leases are recorded on the balance sheet with right-of-use (“ROU”) assets representing the right to use the underlying asset for the lease term and lease liabilities representing the obligation to make lease payments arising from the lease.

Operating lease cost was $0.3 million for the three months ended March 31, 2024, of which $0.1 million was included in cost of goods sold and $0.2 million was included in selling, general and administrative expenses.

Information related to leases (in thousands):


	Three Months Ended		Three Months Ended
Operating cash flow information:	March 31, 2024		March 31, 2023
Operating lease cost	$	341	$	334
Operating lease - cash flow	$	354	$	346


Non-cash activity:
ROU assets obtained in exchange for lease liabilities	$	3,818	$	341


	March 31, 2024			March 31, 2023
Weighted-average remaining lease term	4.0 years			3.0 years
Weighted-average discount rate		7	%		5	%

Future minimum lease payments under non-cancelable leases as of March 31, 2024:


2024 (remaining)	$	1,400
2025		1,755
2026		1,068
2027		926
2028		960
Thereafter		357
Total future minimum lease payments	$	6,466
Less: imputed interest		(826	)
Present value of lease liabilities - current		1,577
Present value of lease liabilities - non-current	$	4,063