Company: NGVC
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025419
Chunk: 19

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 19
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 leases began at various times with the earliest commencing in November 1999, continue for various terms through May 2042 and include various options to renew. The terms and rental rates of these leases have been approved by our audit committee in accordance with our related party transaction policy. As of June 30, 2025, these leases accounted for $8.6 million of operating lease assets and $8.8 million of operating lease liabilities, of which $0.8 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 June 30, 2025 and 2024 and $0.9 million for each of the nine months ended June 30, 2025 and 2024.

The components of total lease cost for the three and nine months ended June 30, 2025 and 2024 were as follows, dollars in thousands:

			Three months ended 

			Nine months ended

			June 30,

			June 30,

			Lease cost

			Classification

			2025

			2024

			2025

			2024

			Operating lease cost:

			Cost of goods sold and occupancy costs

			$
			11,143

			10,976

			33,201

			33,012

			Store expenses

			115

			115

			346

			346

			Administrative expenses

			98

			98

			295

			295

			Pre-opening expenses

			17

			54

			226

			191

			Finance lease cost:

			Depreciation of lease assets

			Store expenses

			1,078

			1,029

			3,234

			3,066

			Pre-opening expenses

			10

			50

			10

			169

			Interest on lease liabilities

			Interest expense, net

			533

			503

			1,605

			1,519

			Pre-opening expenses

			—

			61

			—

			206

			Short-term lease cost

			Store expenses

			853

			791

			2,514

			2,450