Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
We determine if a contract contains a lease at inception. Our material operating leases consist of retail and warehouse locations as well as office space. Our leases generally have remaining terms of 1-7 years, most of which include options to extend the leases for additional 3 to 5-year periods. Generally, the lease term is the minimum of the noncancelable period of the lease or the lease term inclusive of reasonably certain renewal periods.
Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease
payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. Our leases typically contain rent escalations over the lease term. We recognize expense for these leases on a straight-line basis over the lease term.
We have elected the practical expedient to account for lease and non-lease components as a single component for our entire population of leases.
Short-term expenses include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the balance sheet.
Lease expense is recorded within our consolidated statements of operations based upon the nature of the assets. Where assets are used to directly serve our customers, such as facilities dedicated to customer contracts, lease costs are recorded in “store operating costs.” Facilities and assets which serve management and support functions are expensed through general and administrative expenses.
December 31,
December 31,
Right to use assets, operating lease assets $ 43,730  $ 12,088 
Current lease liability $ 6,858  $ 3,001 
Non-current lease liability 38,546  9,479 
$ 45,404  $ 12,480 
December 31,
December 31,
Weighted average remaining lease term 7.1 years 3.5 years
Weighted average discount rate 6.5  % 7.6  %
Year Ended December 31,
2021 2020
Operating lease costs $ 8,205  $ 2,801 
Variable lease costs 2,130 1,071
Short-term lease costs 205 95
Total operating lease costs $ 10,540  $ 3,967 
The following table presents the maturity of the Company’s operating lease liabilities as of December 31, 2021:
2022 $ 9,544 
2023 9,024 
2024 7,818 
2025 6,875 
2026 5,324 
Thereafter 18,466 
Total lease payments 57,051 
Less: Imputed interest (11,647)
Lease Liability at December 31, 2021 $ 45,404