Company: NGVC
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015486
Chunk: 20

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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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 March 31, 2025, these leases accounted for $7.1 million of operating lease assets and $7.3 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 March 31, 2025 and 2024 and $0.6 million for each of the six months ended March 31, 2025 and 2024.

The components of total lease cost for the three and six months ended March 31, 2025 and 2024 were as follows, dollars in thousands:

			Three months ended 

			Six months ended

			March 31,

			March 31,

			Lease cost

			Classification

			2025

			2024

			2025

			2024

			Operating lease cost:

			Cost of goods sold and occupancy costs

			$
			11,093

			11,009

			22,058

			22,036

			Store expenses

			116

			116

			231

			231

			Administrative expenses

			99

			99

			197

			197

			Pre-opening expenses

			46

			78

			209

			137

			Finance lease cost:

			Depreciation of lease assets

			Store expenses

			1,078

			1,028

			2,156

			2,037

			Pre-opening expenses

			—

			49

			—

			119

			Interest on lease liabilities

			Interest expense, net

			530

			514

			1,072

			1,016

			Pre-opening expenses

			—

			61

			—

			145

			Short-term lease cost

			Store expenses

			867

			905

			1,661

			1,659

			Variable lease cost

			Cost of goods sold and occupancy