Annual report [Section 13 and 15(d), not S-K Item 405]

LEASES

LEASES

12 Months Ended

Dec. 31, 2024

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 ten 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, 2024 and 2023, were as follows:


	Balance Sheet Classification	December 31, 2024		December 31, 2023

Assets
Lease ROU assets	Other long-term assets	$	13,825	$	15,180

Liabilities
Current lease liabilities	Accrued liabilities	$	3,470	$	3,179
Noncurrent lease liabilities	Other long-term liabilities	$	11,288	$	13,030

Lease costs were as follows:


	Affected line item in the Consolidated	Year Ended
	Statements of Comprehensive Loss	December 31, 2024		December 31, 2023
Lease costs	Cost of goods sold, Selling, general and administrative	$	3,956	$	4,147
Variable lease costs	Cost of goods sold, Selling, general and administrative		900		1,255
Short-term lease costs	Cost of goods sold, Selling, general and administrative		635		624
		$	5,491	$	6,026

The maturity of lease liabilities as of December 31, 2024 are as follows:


Years Ending December 31,	Lease Payments
2025	$	4,037
2026		3,288
2027		2,516
2028		2,543
2029		2,459
Thereafter		1,732
Total future lease payments		16,575
Less: amount representing interest		(1,817)
Present value of future lease payments		14,758
Less: current lease obligations		(3,470)
Long-term lease obligations	$	11,288

As of December 31, 2024, our leases have a weighted-average remaining lease term of 5.11 years and a weighted-average discount rate of 4.23%.