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LEASES | 3 Months Ended | 12 Months Ended
--- | --- | ---
Mar. 31, 2024 | Dec. 31, 2023
Leases [Abstract] |  |
LEASES | NOTE 13 – LEASES The Company leases various facilities and vehicles under noncancelable operating lease agreements. The remaining lease terms for our leases range from 1 month to 14 years. These leases often include options to extend the term of the lease which may be for periods of up to 5 years. When it is reasonably certain that the option will be exercised, the impact of the renewal term is included in the lease term for purposes of determining total future lease payments and measuring the ROU asset and lease liability. We apply the short-term lease policy election, which allows us to exclude from recognition leases with an original term of 12 months or less. We have not entered into any finance leases as of March 31, 2024. For the three months ended March 31, 2024, the components of the Company’s lease expense were as follows (in thousands):
|  | Three months ended March 31, 2024 |  |  | Three months ended March 31, 2023 |
Operating Lease Cost |  | $ | 1,482 |  |  | $ | 1,518 |
Short-term Lease Cost |  |  | 35 |  |  |  | 30 |
Variable Lease Cost |  |  | 88 |  |  |  | 84 |
Sublease Income |  |  | — |  |  |  | (46 | )
Total Lease Cost |  | $ | 1,605 |  |  | $ | 1,586 |
Supplemental balance sheet information related to leases was as follows (in thousands):
|  | Three months ended March 31, 2024 |
Weighted-average remaining lease term (in years) |  |  | 6.45 |
Weighted average discount rate |  |  | 5.86 | %
|  | Three months ended March 31, 2024 |
Cash paid for amounts included in the measurement of lease liabilities |  |  | 1,350 |
Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the unaudited condensed consolidated balance sheet as of March 31, 2024 were as follows (in thousands):
2024 |  | $ | 3,759 |
2025 |  |  | 4,244 |
2026 |  |  | 3,719 |
2027 |  |  | 2,540 |
2028 |  |  | 1,978 |
Thereafter |  |  | 5,677 |
Total lease payments |  | $ | 21,917 |
Less: imputed interest |  |  | (3,550 | )
Present value of lease liabilities |  | $ | 18,367 |
The Company leases downhole drilling tools to companies in the oil and natural gas industry. Such leases are accounted for in accordance with ASC 842. For the three months ended March 31, 2024 and 2023, tool rental revenue for leases of downhole drilling tools was approximately $30.0 million and $32.3 million, respectively. Our lease contract periods are short-term in nature and are typically daily, monthly, per well, or footage based. Due to the short-term nature of the contracts, no maturity table is presented. | NOTE 8 – LEASES The Company leases various facilities and vehicles under noncancelable operating lease agreements. The remaining lease terms for our leases range from 1 month to 14 years. These leases often include options to extend the term of the lease, which may be for periods of up to 5 years. When it is reasonably certain that the option will be exercised, the impact of the renewal term is included in the lease term for purposes of determining total future lease payments and measuring the ROU asset and lease liability. We apply the short-term lease policy election, which allows us to exclude from recognition leases with an original term of 12 months or less. We have not entered into any finance leases as of December 31, 2023. For the year ended December 31, 2023 and 2022, the components of the Company’s lease expense were as follows (in thousands):
|  | Year Ended December 31, 2023 |  |  | Year Ended December 31, 2022 |
Operating Lease Cost |  | $ | 6,077 |  |  | $ | 5,722 |
Short-term Lease Cost |  |  | 130 |  |  |  | 143 |
Variable Lease Cost |  |  | 320 |  |  |  | 319 |
Sublease Income |  |  | (76 | ) |  |  | (183 | )
Total Lease Cost |  | $ | 6,451 |  |  | $ | 6,001 |
Supplemental balance sheet information related to leases was as follows (in thousands):
|  | Year Ended December 31, 2023 |  |  | Year Ended December 31, 2022 |
Weighted-average remaining lease term (in years) |  |  | 6.55 |  |  |  | 7.53 |
Weighted average discount rate |  |  | 5.80 | % |  |  | 5.34 | %
|  | Year Ended December 31, 2023 |  |  | Year Ended December 31, 2022 |
Cash paid for amounts included in the measurement of lease liabilities |  |  | 5,538 |  |  |  | 5,003 |
Future undiscounted cash flows for each of the next five years and thereafter and reconciliation to the lease liabilities recognized on the consolidated balance sheet as of December 31, 2023 were as follows (in thousands):
2024 |  | $ | 4,923 |
2025 |  |  | 4,089 |
2026 |  |  | 3,522 |
2027 |  |  | 2,439 |
2028 |  |  | 1,939 |
Thereafter |  |  | 5,605 |
Total lease payments |  | $ | 22,517 |
Less: imputed interest |  |  | (3,666 | )
Present value of lease liabilities |  | $ | 18,851 |
The Company leases downhole drilling tools to companies in the oil and natural gas industry. Such leases are accounted for in accordance with ASC 842. For the year ended December 31, 2023 and 2022, tool rental revenue was approximately $119.2 million and $99.0 million, respectively. Our lease contract periods are short-term in nature and are typically daily, monthly, per well, or footage based. Due to the short-term nature of the contracts, no maturity table is presented.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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