Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2023

NOTE 19. LEASES

The Company has entered into leases for certain facilities, vehicles and other equipment. Our leases have remaining contractual terms of up to seven years, some of which include options to extend the leases for up to five years. Our lease costs are primarily related to facility leases for inventory warehousing, administration offices and vehicles. The Company’s finance leases are immaterial.

Lease ROU assets and liabilities as of December 31, 2023 and 2022, were as follows:


	Balance Sheet Classification	December 31, 2023		December 31, 2022

Assets
Lease ROU assets	Other long-term assets	$	15,180	$	15,189

Liabilities
Current lease liabilities	Accrued liabilities	$	3,179	$	2,836
Noncurrent lease liabilities	Other long-term liabilities	$	13,030	$	12,825

Lease costs were as follows:


	Affected line item in the Consolidated	Year Ended
	Statements of Comprehensive (Loss) Income	December 31, 2023		December 31, 2022
Lease costs	Cost of goods sold, Selling, general and administrative	$	4,147	$	2,532
Variable lease costs	Cost of goods sold, Selling, general and administrative		1,255		527
Short-term lease costs	Cost of goods sold, Selling, general and administrative		624		1,249
		$	6,026	$	4,308

The maturity of lease liabilities as of December 31, 2023 are as follows:


Years Ending December 31,	Lease Payments
2024	$	3,756
2025		3,836
2026		3,026
2027		2,203
2028		2,223
Thereafter		3,104
Total future lease payments		18,148
Less: amount representing interest		(1,939)
Present value of future lease payments		16,209
Less: current lease obligations		(3,179)
Long-term lease obligations	$	13,030

As of December 31, 2023, our leases have a weighted-average remaining lease term of 5.3 years and a weighted-average discount rate of 3.9%.