| LEASES |
LEASES
Lease cost for the three and six months ended June 30, 2024 and 2023 are as follows (in thousands):
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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2024 |
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2023 |
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2024 |
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2023 |
Operating lease cost (1)
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$ |
839 |
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$ |
1,117 |
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$ |
1,752 |
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$ |
2,271 |
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| Finance lease cost: |
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| Amortization of right-of-use assets |
259 |
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118 |
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600 |
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118 |
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| Interest on lease liabilities |
132 |
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75 |
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270 |
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75 |
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| Total lease cost |
$ |
1,230 |
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$ |
1,310 |
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$ |
2,622 |
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$ |
2,464 |
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| Reported in: |
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| Cost of goods sold |
$ |
1,090 |
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$ |
1,171 |
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$ |
2,323 |
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$ |
2,264 |
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| Selling, general and administrative expense |
140 |
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139 |
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299 |
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200 |
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| Total lease cost |
$ |
1,230 |
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$ |
1,310 |
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$ |
2,622 |
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$ |
2,464 |
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(1)Operating lease cost does not include short-term leases or variable costs, all of which are immaterial.
As of June 30, 2024, the weighted-average remaining lease terms of the Company’s operating leases and finance leases were approximately 8.0 years and 6.7 years, respectively, and the weighted-average discount rates applied were 6.8% and 7.6%, respectively.
Supplemental cash flow information related to leases for the six months ended June 30, 2024 and June 30, 2023 are as follows (in thousands):
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Six Months Ended June 30, |
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2024 |
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2023 |
| Cash paid for amounts included in the measurement of operating lease liabilities: |
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| Operating cash flows for operating leases |
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$ |
1,629 |
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$ |
2,263 |
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| Operating cash flows for finance leases |
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262 |
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67 |
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| Financing cash flows for finance leases |
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367 |
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103 |
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| Right-of-use assets obtained in exchange for new lease obligations: |
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| Operating leases |
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$ |
273 |
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$ |
— |
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| Financing leases |
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751 |
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4,688 |
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| Net change in operating lease right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance |
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$ |
— |
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$ |
(1,514) |
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As of June 30, 2024, the estimated future minimum payment obligations for non-cancelable operating and finance leases are as follows (in thousands):
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Operating Leases |
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Finance Leases |
| Remainder of 2024 |
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$ |
1,620 |
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$ |
632 |
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| 2025 |
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3,202 |
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1,195 |
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| 2026 |
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2,870 |
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1,067 |
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| 2027 |
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2,690 |
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914 |
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| 2028 |
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1,996 |
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1,632 |
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| Thereafter |
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9,042 |
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4,064 |
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| Total lease payments |
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21,420 |
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9,504 |
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| Less: imputed interest |
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(5,126) |
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(2,674) |
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| Present value of lease liabilities |
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$ |
16,294 |
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$ |
6,830 |
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