12. Leases

​

The following table provides the components of lease cost recognized in the condensed consolidated statements of operations and comprehensive income:

​

​

For the three months ended March 31, 2023, the Company recorded short-term lease expense of $741, of which $484 related to operating leases and $257 was related to finance leases. For the three months ended March 31, 2022, the Company recorded short-term lease expense of $538, of which $280 was related to operating leases and $258 was related to finance leases.

The following table provides the weighted average discount rates and weighted average remaining lease terms for the Company’s leases:

​

On February 15, 2023, the Company completed the Pennsylvania Transaction for $15,000 with net proceeds used towards repayment of debt and working capital. The lease is for an initial term of 15 years with two five-year options to extend. Rent under the lease will be payable monthly at a rate of $188 per month. Rent increases 2.5% on the second annual anniversary of the lease commencement date and then annually throughout the initial lease term.

The Company determined that control of the White Haven Facility transferred to the buyer, resulting in a sale of the White Haven Facility. The Company received cash proceeds of $15,000 and recognized an ROU asset of $11,974 and an operating lease liability of $11,880 upon closing the transaction. The effective interest rate on the operating lease liability is 19.33%. The Company recorded a gain on the sale leaseback of $8,401, which is included in gain on sale of assets on the condensed consolidated statements of operations.

As of March 31, 2023, the operating lease liability associated with this transaction is $12,075.

Future minimum lease payments under the Company’s non-cancellable leases as of March 31, 2023 are as follows:

​

​