v3.25.1
Note 8 - Leases
3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]

8.

Leases

 

We have operating leases primarily associated with our corporate offices and regional service centers as well as for certain equipment. Our leases have remaining lease terms of 1 to 10 years, some of which include options, at our discretion, to extend the leases for additional periods generally on one-year revolving periods. Other leases allow for us to terminate the lease based on appropriate notification periods. For certain of our leased offices, we sublease a portion of the unoccupied space. The components of lease expense associated with our lease liabilities and supplemental cash flow information related to those leases were as follows (dollar amounts in thousands):

 

  

For the Three Months Ended March 31,

 
  

2025

  

2024

 

Operating lease cost, gross

 $782  $627 

Sublease income

  (24)  (24)

Net Operating lease cost

 $758  $603 

Cash paid under operating leases, gross

 $762  $747 
         

Weighted average remaining lease term - months

  108   119 

Weighted average discount rate

  7.1%  6.6%
 

As of March 31, 2025, scheduled payments of lease liabilities were as follows (in thousands):

  

Gross Lease Payment

  

Payments received from Sublease

  

Net Lease Payment

 

2025 (Remainder of 2025)

 $2,320  $(75) $2,245 

2026

  3,792   (42)  3,750 

2027

  3,680      3,680 

2028

  3,583      3,583 

2029

  3,466      3,466 

Thereafter

  16,704      16,704 

Total lease payments

  33,545   (117)  33,428 

Less imputed interest

  (9,400)        

Operating lease liabilities

 $24,145         
 

In  August 2021, we entered into an operating lease agreement for our corporate headquarters in Atlanta, Georgia (the "Headquarters lease") with an unaffiliated third party. This Headquarters lease initially covered approximately 73,000 square feet and commenced in June 2022 for a 146 month term. In connection with the commencement of this lease, we discontinued most of the subleasing arrangements with third parties for space at our corporate headquarters. A right-of-use asset and liability was recorded at the commencement date of this lease.

 

We exercised an expansion right under the Headquarters lease to add an additional 26,133 square feet (the "Expansion space") at our corporate headquarters. The Expansion space term commenced on December 23, 2024. The Expansion space co-terminates with the Headquarters lease. The other lease terms for the Expansion space are the same as those for the initial space leased under the Headquarters lease. The total remaining commitment under this lease is approximately $31.9 million and is included in the table above.

 

In addition, we occasionally lease certain equipment under cancelable and non-cancelable leases, which are accounted for as capital leases in our condensed consolidated financial statements. As of March 31, 2025, we had no material non-cancelable capital leases with initial or remaining terms of more than one year.