LEASES |
LEASES Lease cost for the three and six months ended June 30, 2025 and 2024 is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | Operating lease cost (1) | $ | 1,130 | | | $ | 839 | | | $ | 2,146 | | | $ | 1,752 | | Finance lease cost: | | | | | | | | Amortization of right-of-use assets | 263 | | | 259 | | | 515 | | | 600 | | Interest on lease liabilities | 125 | | | 132 | | | 252 | | | 270 | | Total lease cost | $ | 1,518 | | | $ | 1,230 | | | $ | 2,913 | | | $ | 2,622 | | | | | | | | | | Reported in: | | | | | | | | Cost of goods sold | $ | 1,339 | | | $ | 1,090 | | | $ | 2,563 | | | $ | 2,323 | | Selling, general and administrative expense | 179 | | | 140 | | | 350 | | | 299 | | Total lease cost | $ | 1,518 | | | $ | 1,230 | | | $ | 2,913 | | | $ | 2,622 | |
(1)Operating lease cost does not include short-term leases or variable costs, all of which are immaterial. As of June 30, 2025, the weighted-average remaining lease terms of the Company’s operating leases and finance leases were approximately 8.6 years and 5.9 years, respectively, and the weighted-average discount rates applied were 7.0% and 7.6%, respectively. Supplemental cash flow information related to leases for the six months ended June 30, 2025 and 2024 is as follows (in thousands): | | | | | | | | | | | | | | | | | Six Months Ended June 30, | | | 2025 | | 2024 | Cash paid for amounts included in the measurement of operating lease liabilities: | | | | | Operating cash flows for operating leases | | $ | 1,998 | | | $ | 1,629 | | Operating cash flows for finance leases | | 251 | | | 262 | | Financing cash flows for finance leases | | 482 | | | 367 | | Right-of-use assets obtained in exchange for new lease obligations: | | | | | Operating leases | | $ | 14,717 | | | $ | 273 | | Finance leases | | 458 | | | 751 | | Net change in operating lease right-of-use assets due to lease modifications resulting in reclassification of leases from operating to finance | | $ | (32) | | | $ | — | |
As of June 30, 2025, the estimated future minimum payment obligations for non-cancelable operating and finance leases are as follows (in thousands): | | | | | | | | | | | | | | | | | Operating Leases | | Finance Leases | Remainder of 2025 | | $ | 2,678 | | | $ | 624 | | 2026 | | 5,278 | | | 1,205 | | 2027 | | 5,208 | | | 1,103 | | 2028 | | 4,460 | | | 1,749 | | 2029 | | 4,493 | | | 952 | | Thereafter | | 20,983 | | | 3,291 | | Total lease payments | | 43,100 | | | 8,924 | | Less: imputed interest | | 11,301 | | | 2,221 | | Present value of lease liabilities | | $ | 31,799 | | | $ | 6,703 | |
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