| LEASES |
LEASES The following table presents assets and liabilities for leases as of December 31, 2023 and 2022 (in thousands):
|
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|
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2023 |
|
2022 |
| Assets |
|
|
|
| Operating lease right-of-use assets |
$ |
16,339 |
|
|
$ |
18,582 |
|
| Finance lease right-of-use assets |
6,064 |
|
|
— |
|
| Total lease assets |
$ |
22,403 |
|
|
$ |
18,582 |
|
|
|
|
|
| Liabilities |
|
|
|
| Operating lease liabilities: |
|
|
|
| Current (included in accrued expenses and other current liabilities) |
$ |
2,146 |
|
|
$ |
3,541 |
|
| Non-current |
14,908 |
|
|
15,484 |
|
| Total operating lease liabilities |
17,054 |
|
|
19,025 |
|
|
|
|
|
| Finance lease liabilities: |
|
|
|
| Current (included in accrued expenses and other current liabilities) |
600 |
|
|
— |
|
| Non-current |
5,547 |
|
|
— |
|
| Total finance lease liabilities |
6,147 |
|
|
— |
|
|
|
|
|
| Total lease liabilities |
$ |
23,201 |
|
|
$ |
19,025 |
|
Lease cost for the years ended December 31, 2023 and 2022 are as follows (in thousands):
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|
|
2023 |
|
2022 |
Operating lease cost (1)
|
$ |
4,396 |
|
|
$ |
5,390 |
|
| Finance lease cost: |
|
|
|
| Amortization of right-of-use assets |
562 |
|
|
— |
|
| Interest on lease liabilities |
290 |
|
|
— |
|
| Total lease cost |
$ |
5,248 |
|
|
$ |
5,390 |
|
|
|
|
|
| Reported in: |
|
|
|
| Cost of goods sold |
$ |
4,777 |
|
|
$ |
4,897 |
|
| Selling, general and administrative expense |
471 |
|
|
493 |
|
| Total lease cost |
$ |
5,248 |
|
|
$ |
5,390 |
|
(1)Operating lease cost does not include short-term leases or variable costs, all of which are immaterial.
As of December 31, 2023 the weighted-average remaining lease term of operating and finance leases were approximately 8.3 years and 7.6 years, respectively, and the weighted-average discount rates applied were 6.7% and 7.8%, respectively.
Rent expense for operating leases for the 2021 Successor Period and 2021 Predecessor Period was $0.5 million and $2.9 million, respectively, of which $0.5 million and $2.5 million, respectively, was presented in cost of goods sold and $0.0 million and $0.4 million, respectively, was presented in selling, general, and administrative in the consolidated statements of operations and comprehensive income (loss).
Supplemental cash flow information related to leases for the years ended December 31, 2023 and 2022 are as follows (in thousands):
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|
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|
|
|
|
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|
2023 |
|
2022 |
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
| Operating cash flows for operating leases |
$ |
4,182 |
|
|
$ |
5,072 |
|
| Operating cash flows for finance leases |
282 |
|
|
— |
|
| Financing cash flows for finance leases |
387 |
|
|
— |
|
| Right-of-use assets obtained in exchange for new lease obligations: |
|
|
|
| Operating leases |
$ |
4,492 |
|
|
$ |
4,380 |
|
| Finance leases |
6,381 |
|
|
— |
|
| Net change in operating right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance |
$ |
(1,514) |
|
|
$ |
— |
|
As of December 31, 2023, the estimated future minimum payment obligations for non-cancelable operating leases and finance leases are as follows (in thousands):
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Years Ending December 31, |
|
Operating Leases |
|
Finance Leases |
| 2024 |
|
$ |
3,202 |
|
|
$ |
1,063 |
|
| 2025 |
|
3,132 |
|
|
979 |
|
| 2026 |
|
2,773 |
|
|
831 |
|
| 2027 |
|
2,592 |
|
|
794 |
|
| 2028 |
|
1,920 |
|
|
1,536 |
|
| Thereafter |
|
9,042 |
|
|
3,663 |
|
| Total lease payments |
|
22,661 |
|
|
8,866 |
|
| Less: imputed interest |
|
(5,607) |
|
|
(2,719) |
|
| Present value of lease liabilities |
|
$ |
17,054 |
|
|
$ |
6,147 |
|
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