Leases

12 Months Ended

Dec. 31, 2022

15. Leases

The Company has operating leases for office and warehouse space and equipment under various arrangements which provide the right to use the underlying asset and require lease payments for the lease term. The Company’s lease portfolio consists of operating leases which expire at various dates through 2026.

Certain of the Company’s lease arrangements contain renewal provisions, exercisable at the Company's option. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating lease cost was $1.2 million and $1.3 million for the year ended December 31, 2022 and 2021, respectively. For the year ended December 31, 2022 and 2021, $0.5 million was included in cost of goods sold and $0.7 million and $0.8 million, respectively, was included in selling, general and administrative expenses in the accompanying consolidated statements of operations.

Information related to leases (dollars in 000’s):

	Year ended			Year ended
Operating cash flow information:	December 31, 2022			December 31, 2021
Operating lease cost	$	1,239		$	1,265
Operating lease - cash flow	$	1,281		$	1,098


Non-cash activity:
ROU assets obtained in exchange for lease liabilities	$	545		$	1,760

	December 31, 2022			December 31, 2021
Weighted-average remaining lease term	3.0 years			4.0 years
Weighted-average discount rate		5	%		5	%

Future minimum lease payments under non-cancellable leases as of December 31, 2022:

(dollars in 000’s):

2023	$	1,239
2024		918
2025		691
2026		155
Total future minimum lease payments	$	3,003
Less: imputed interest		(190	)
Present value of lease liabilities - current		1,130
Present value of lease liabilities - non-current	$	1,683