NOTE 14 – Leases:

 

The Company does not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement.

 

The components of lease cost were as follows (in thousands):

 

  Years Ended December 31, 
  2024  2023 

Operating lease expense

 $5,123  $4,495 

Short-term lease expense

  431   609 

Total lease expense

 $5,554  $5,104 

 

Cash flow and noncash information related to our operating leases were as follows (in thousands):

 

  Years Ended December 31, 
  2024  2023 

Operating cash flows – cash paid for operating lease liabilities

 $4,481  $3,368 

Non-cash – Operating lease right-of-use assets obtained in exchange for new lease liabilities

 $1,533  $13,908 

 

Other supplemental information related to our operating leases was as follows:

 

  Years Ended December 31, 
  2024  2023 

Weighted-average remaining lease term (in years)

  4.7   4.6 

Weighted average discount rate

  6.78%  6.57

%

 

Maturities of operating lease liabilities as of December 31, 2024 were as follows (in thousands):

 

  Operating Leases 

2025

 $4,495 

2026

  4,403 

2027

  3,522 

2028

  3,246 

2029

  1,282 

Thereafter

  503 

Total lease payments

  17,451 

Less imputed interest

  2,393 

Present value of lease liabilities

 $15,058

 

 

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.