Company: NGVC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001437749-25-003026
Chunk: 17

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 our audit committee in accordance with our related party transaction policy. As of December 31, 2024, these leases accounted for $7.3 million of operating lease assets and $7.5 million of operating lease liabilities, of which $0.9 million was current, and are included in the disclosures below. Lease expense is recognized on a straight-line basis and was $0.3 million for each of the three months ended December 31, 2024 and 2023.

The components of total lease cost for the three months ended December 31, 2024 and 2023 were as follows, dollars in thousands:

			Three months ended

			December 31,

			Lease cost

			Classification

			2024

			2023

			Operating lease cost:

			Cost of goods sold and occupancy costs

			$
			10,965

			11,027

			Store expenses

			115

			115

			Administrative expenses

			98

			98

			Pre-opening expenses

			163

			59

			Finance lease cost:

			Depreciation of lease assets

			Store expenses

			1,078

			1,009

			Pre-opening expenses

			—

			70

			Interest on lease liabilities

			Interest expense, net

			542

			502

			Pre-opening expenses

			—

			84

			Short-term lease cost

			Store expenses

			794

			754

			Variable lease cost

			Cost of goods sold and occupancy costs(1)

			1,621

			1,582

			Sublease income

			Store expenses

			(103
			)

			(88
			)

			Total lease cost

			$
			15,273

			15,212

(1) Immaterial balances related to corporate headquarters and distribution center are included in administrative expenses and store expenses, respectively.

Additional information related to the Company’s leases for the three months ended December 31, 2024 and 2023 was as follows, dollars in thousands:

			Three months ended

			December 31,

			2024

			2023

			Cash paid for amounts included in the measurement of lease liabilities:

			Operating cash flows from operating leases