Leases

12 Months Ended

Dec. 31, 2024

15. 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 probability of renewal is not reasonably certain and therefore not included in ROU assets and lease liabilities. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease cost was $1.7 million and $1.3 million for the years ended December 31, 2024 and 2023, respectively. For the years ended December 31, 2024 and 2023, $0.7 million and $0.5 million, respectively, was included in cost of goods sold and $1.0 million and $0.8 million, respectively, was included in selling, general and administrative expenses in the accompanying consolidated statements of operations.

Information related to leases (dollars in 000’s):


	Year ended			Year ended
Operating cash flow information:	December 31, 2024			December 31, 2023
Operating lease cost	$	1,723		$	1,344
Operating lease - cash flow	$	1,763		$	1,406


Non-cash activity:
ROU assets obtained in exchange for lease liabilities	$	4,632		$	581

	December 31, 2024			December 31, 2023
Weighted-average remaining lease term	3.6 years			2.0 years
Weighted-average discount rate		7	%		5	%

Future minimum lease payments under non-cancellable leases as of December 31, 2024:

(dollars in 000’s):



2025	$	1,848
2026		1,295
2027		1,019
2028		1,042
2029		360

Total future minimum lease payments	$	5,564
Less: imputed interest		(633	)
Present value of lease liabilities - current		1,564
Present value of lease liabilities - non-current	$	3,367