Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

LEASES

LEASES

The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment accounted for under ASC 842. The leases have remaining lease terms of less than one year to five years, some of which include options to extend for up to five years, and some of which include options to terminate the leases within one year. However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants.

The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred.

The components of lease expense were as follows:

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	4,384	$	4,405	$	4,578
Short-term lease cost	710		415		374
Variable lease cost	478		299		320
Finance lease cost:
Amortization	25		33		58
Interest on lease liabilities	2		5		9
Total lease cost	$	5,599	$	5,157	$	5,339

Supplemental cash flow information related to leases was as follows:

	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	4,793	$	4,850	$	4,961
Operating cash flows from finance leases	2		5		10
Financing cash flows from finance leases	29		37		57
ROU assets obtained in exchange for lease obligations:
Operating leases	6,752		208		1,993
Finance leases	—		—		—

Supplemental balance sheet information related to leases was as follows:

	December 31,			December 31,
	2023			2022
Finance leases:
Property, plant and equipment, at cost	$	127		$	127
Accumulated amortization	(120)			(95)
Property and equipment, net	$	7		$	32
Current portion of notes payable and long-term debt	$	8		$	29
Notes payable, long-term debt and other obligations, less current portion	—			8
Total finance lease liabilities	$	8		$	37
Weighted average remaining lease term in years:
Operating leases	3.85			2.57
Finance leases	0.25			1.25
Weighted average discount rate:
Operating leases	9.78		%	9.89		%
Finance leases	8.85		%	8.85		%

As of December 31, 2023, maturities of lease liabilities were as follows:

	Operating Leases		Finance  Leases
Year Ending December 31:
2024	$	4,702	$	8
2025	3,292		—
2026	2,675		—
2027	2,067		—
2028	1,602		—
Thereafter	—		—
Total lease payments	14,338		8
Less imputed interest	(2,455)		—
Total	$	11,883	$	8

The Company leases office space from an affiliate of a significant stockholder of the Company. This lease represents $1,891 of the ROU asset balances and $1,937 of lease liability balances as of December 31, 2023. The rent expense for this lease was approximately $541 for the year ended December 31, 2023.

As of December 31, 2023, the Company had $2,071 undiscounted lease payments relating to leases that have not yet commenced. The operating leases will commence in the first half of 2024 with lease terms ranging between 2 and 3 years.

The Company’s rental expense for the years ended December 31, 2023, 2022 and 2021 was $4,384, $4,405 and $4,578, respectively. Rent expense for the year ended December 31, 2023 consisted of $3,411 of amortization and $973 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2022 consisted of $3,381 of amortization and $1,024 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2021 consisted of $3,275 of amortization and impairment of ROU assets and $1,303 of lease expense for interest accretion on operating lease liabilities.

LEASES

LEASES

The Company has operating and finance leases for corporate and sales offices, and certain vehicles and equipment accounted for under ASC 842. The leases have remaining lease terms of less than one year to five years, some of which include options to extend for up to five years, and some of which include options to terminate the leases within one year. However, the Company in general is not reasonably certain to exercise options to renew or terminate, and therefore renewal and termination options are not considered in the lease term or the ROU asset and lease liability balances. The Company’s lease population includes purchase options on equipment leases that are included in the lease payments when reasonably certain to be exercised. The Company’s lease population does not include any residual value guarantees. The Company’s lease population does not contain any material restrictive covenants.

The Company has leases with variable payments, most commonly in the form of Common Area Maintenance (“CAM”) and tax charges which are based on actual costs incurred. These variable payments were excluded from the ROU asset and lease liability balances since they are not fixed or in-substance fixed payments. Variable payments are expensed as incurred.

The components of lease expense were as follows:

	Year Ended December 31,
	2023		2022		2021
Operating lease cost	$	4,384	$	4,405	$	4,578
Short-term lease cost	710		415		374
Variable lease cost	478		299		320
Finance lease cost:
Amortization	25		33		58
Interest on lease liabilities	2		5		9
Total lease cost	$	5,599	$	5,157	$	5,339

Supplemental cash flow information related to leases was as follows:

	Year Ended December 31,
	2023		2022		2021
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	4,793	$	4,850	$	4,961
Operating cash flows from finance leases	2		5		10
Financing cash flows from finance leases	29		37		57
ROU assets obtained in exchange for lease obligations:
Operating leases	6,752		208		1,993
Finance leases	—		—		—

Supplemental balance sheet information related to leases was as follows:

	December 31,			December 31,
	2023			2022
Finance leases:
Property, plant and equipment, at cost	$	127		$	127
Accumulated amortization	(120)			(95)
Property and equipment, net	$	7		$	32
Current portion of notes payable and long-term debt	$	8		$	29
Notes payable, long-term debt and other obligations, less current portion	—			8
Total finance lease liabilities	$	8		$	37
Weighted average remaining lease term in years:
Operating leases	3.85			2.57
Finance leases	0.25			1.25
Weighted average discount rate:
Operating leases	9.78		%	9.89		%
Finance leases	8.85		%	8.85		%

As of December 31, 2023, maturities of lease liabilities were as follows:

	Operating Leases		Finance  Leases
Year Ending December 31:
2024	$	4,702	$	8
2025	3,292		—
2026	2,675		—
2027	2,067		—
2028	1,602		—
Thereafter	—		—
Total lease payments	14,338		8
Less imputed interest	(2,455)		—
Total	$	11,883	$	8

The Company leases office space from an affiliate of a significant stockholder of the Company. This lease represents $1,891 of the ROU asset balances and $1,937 of lease liability balances as of December 31, 2023. The rent expense for this lease was approximately $541 for the year ended December 31, 2023.

As of December 31, 2023, the Company had $2,071 undiscounted lease payments relating to leases that have not yet commenced. The operating leases will commence in the first half of 2024 with lease terms ranging between 2 and 3 years.

The Company’s rental expense for the years ended December 31, 2023, 2022 and 2021 was $4,384, $4,405 and $4,578, respectively. Rent expense for the year ended December 31, 2023 consisted of $3,411 of amortization and $973 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2022 consisted of $3,381 of amortization and $1,024 of lease expense for interest accretion on operating lease liabilities. Rent expense for the year ended December 31, 2021 consisted of $3,275 of amortization and impairment of ROU assets and $1,303 of lease expense for interest accretion on operating lease liabilities.