v3.24.2.u1
Leases
6 Months Ended
Jun. 30, 2024
Leases [Abstract]  
Leases Leases
We have operating leases for some of our office space, warehouse space, operating locations, and equipment. Our leases have remaining lease terms up to ten years. Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. Our leases generally require us to pay all maintenance and insurance costs. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Lease costs are included in either cost of revenues or selling, general, and administrative expense depending on the use of the underlying asset. The components of lease expense were as follows within the Company’s condensed consolidated statements of operations (in thousands):

 Three Months Ended June 30,
Six Months Ended June 30,
2024202320242023
Operating lease expense:
     Operating lease expense (1)(2)
$5,645 $1,459 $7,858 $3,003 
Finance lease expense:
Amortization of leased assets$200 $— $200 $— 
Interest on lease liabilities50 — 50 — 
Total finance lease expense250 — 250 — 
Total lease expense$5,895 $1,459 $8,108 $3,003 
(1) Includes lease expense for leases not included on our condensed consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less. Variable rent expense was not material.
(2) Total lease expense includes $1.6 million and $2.3 million, respectively, of short term lease cost for the three and six months ended June 30, 2024 and $0.3 million and $1.0 million, respectively, of short term lease cost for the three and six months ended June 30, 2023.

Operating lease supplemental cash flow information (in thousands):
 Six Months Ended June 30,
2024
2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$5,551 $1,592 
Operating cash flows - finance leases$50 $— 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$122 $96 
Finance leases$— $— 
Supplemental balance sheet information (in thousands):
 June 30, 2024December 31, 2023
Operating leases:
Operating right-of-use asset$53,939 $33,716 
Accrued liabilities9,479 — 
Operating lease liabilities49,392 34,468 
Total operating lease liabilities$58,871 $34,468 
Finance leases:
Finance lease right-of-use asset$4,698 $— 
Finance lease liabilities, current portion1,730 — 
Finance lease liabilities, net of current portion2,555 — 
Total finance lease liabilities$4,285 $— 

Additional operating lease information:
 June 30, 2024December 31, 2023
Weighted average remaining lease term:
Operating leases4.75 years7.50 years
Finance leases2.88 years— 
Weighted average discount rate:
Operating leases9.66 %9.54 %
Finance leases6.16 %— %

Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2024 (in thousands):
 Operating Leases
Finance Leases
Remainder of 2024
$9,216 $1,020 
202513,828 1,480 
202612,539 1,211 
20279,455 958 
20287,912 33 
Thereafter28,262 — 
Total lease payments81,211 4,702 
Less imputed interest(22,341)(418)
Total lease liabilities$58,871 $4,285 
Leases Leases
We have operating leases for some of our office space, warehouse space, operating locations, and equipment. Our leases have remaining lease terms up to ten years. Some of our leases have options to extend for various periods, while some have termination options with prior notice of generally 30 days or six months. Our leases generally require us to pay all maintenance and insurance costs. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Lease costs are included in either cost of revenues or selling, general, and administrative expense depending on the use of the underlying asset. The components of lease expense were as follows within the Company’s condensed consolidated statements of operations (in thousands):

 Three Months Ended June 30,
Six Months Ended June 30,
2024202320242023
Operating lease expense:
     Operating lease expense (1)(2)
$5,645 $1,459 $7,858 $3,003 
Finance lease expense:
Amortization of leased assets$200 $— $200 $— 
Interest on lease liabilities50 — 50 — 
Total finance lease expense250 — 250 — 
Total lease expense$5,895 $1,459 $8,108 $3,003 
(1) Includes lease expense for leases not included on our condensed consolidated balance sheet based on our accounting policy election to exclude leases with a term of 12 months or less. Variable rent expense was not material.
(2) Total lease expense includes $1.6 million and $2.3 million, respectively, of short term lease cost for the three and six months ended June 30, 2024 and $0.3 million and $1.0 million, respectively, of short term lease cost for the three and six months ended June 30, 2023.

Operating lease supplemental cash flow information (in thousands):
 Six Months Ended June 30,
2024
2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$5,551 $1,592 
Operating cash flows - finance leases$50 $— 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$122 $96 
Finance leases$— $— 
Supplemental balance sheet information (in thousands):
 June 30, 2024December 31, 2023
Operating leases:
Operating right-of-use asset$53,939 $33,716 
Accrued liabilities9,479 — 
Operating lease liabilities49,392 34,468 
Total operating lease liabilities$58,871 $34,468 
Finance leases:
Finance lease right-of-use asset$4,698 $— 
Finance lease liabilities, current portion1,730 — 
Finance lease liabilities, net of current portion2,555 — 
Total finance lease liabilities$4,285 $— 

Additional operating lease information:
 June 30, 2024December 31, 2023
Weighted average remaining lease term:
Operating leases4.75 years7.50 years
Finance leases2.88 years— 
Weighted average discount rate:
Operating leases9.66 %9.54 %
Finance leases6.16 %— %

Future minimum lease payments by year and in the aggregate, under non-cancelable operating leases with terms in excess of one year, consist of the following at June 30, 2024 (in thousands):
 Operating Leases
Finance Leases
Remainder of 2024
$9,216 $1,020 
202513,828 1,480 
202612,539 1,211 
20279,455 958 
20287,912 33 
Thereafter28,262 — 
Total lease payments81,211 4,702 
Less imputed interest(22,341)(418)
Total lease liabilities$58,871 $4,285