LEASES

9 Months Ended

Sep. 30, 2024

Operating Leases

The Company has operating leases for office and warehouse space and certain equipment. In certain of the Company’s lease agreements, the rental payments are adjusted periodically based on defined terms within the lease. The Company did not have any finance leases for the nine months ended September 30, 2024 and 2023.

Our leases relating to office and warehouse space have lease terms of 65 months to 102 months. Our leases relating to equipment have lease terms of 36 months, with certain of them having automatic renewal clauses.

The Company’s warehouse agreements also contain non-lease components, in the form of payments towards variable logistics services and labor charges, which the Company is obligated to pay based on the services consumed by it. Such amounts are not included in the measurement of the lease liability but are recognized as expenses when they are incurred.

The operating lease expense was $1.2 million and $1.1 million for the three months ended September 30, 2024 and 2023, respectively, and $3.7 million and $3.9 million for the nine months ended September 30, 2024 and 2023, respectively.

Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands):


	Nine months ended September 30,
	2024		2023

Cash paid for amounts included in the measurements of lease liabilities
Operating cash flow used in operating leases	$	4,719	$	4,838

Right-of-use assets obtained in exchange for lease obligations
Operating leases	$	—	$	753

As of September 30, 2024, the weighted average remaining lease term was 3 years, 4 months and the weighted average discount rate was 2.30%.

The following table presents the maturity of the Company’s operating lease liabilities as of September 30, 2024 (in thousands):


2024 (excluding the nine months ended September 30, 2024)	$	1,593
2025	6,462
2026	4,783
2027	2,553
2028	2,618
Thereafter	240
Total lease payments	$	18,249
Less: Imputed interest	(624)
Total	$	17,625