Leases

9 Months Ended

Sep. 30, 2020

We lease our production facilities and administrative offices as well as certain equipment used in our operations including leases on transportation equipment used in the delivery of our products. The lease terms range from monthly to five years. We occupy a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2021. We also occupy two other manufacturing facilities, a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2020, and a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2023. In addition, we occupy a 1,408 square foot office space in Greer, South Carolina under a lease expiring April 2021. Finally, we executed a lease for 4,100 square feet of office space in Hackensack, New Jersey with a lease term beginning on April 1, 2019 and expiring on July 1, 2024.

At September 30, 2020, the Company had operating lease liabilities of $2.2 million and right-of-use assets of $2.1 million, which are included in the consolidated balance sheet.

The following summarizes quantitative information about the Company’s operating leases (table in thousands):


	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019			Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019
Operating leases
Operating lease cost	$	382		$	532		$	1,228		$	1,592
Variable lease cost	90			90			403			258
Operating lease expense	472			622			1,631			1,850
Short-term lease rent expense	4			4			12			12
Total rent expense	$	476		$	626		$	1,643		$	1,862

Other information
Operating cash flows from operating leases	$	393		$	494		$	1,248		$	1,532
Right of use assets exchanged for operating lease liabilities	$	—		$	136		$	—		$	4,442
Weighted-average remaining lease term – operating leases	2.3			1.8			2.3			1.8
Weighted-average discount rate – operating leases	6.8		%	6.8		%	6.8		%	6.8		%

Future minimum rental payments under operating lease agreements are as follows (in thousands):


Year ending December 31, 2020 (remaining)	$	387
Year ending December 31, 2021	1,055
Year ending December 31, 2022	592
Year ending December 31, 2023	234
Year ending December 31, 2024	98

Total	$	2,366
Less present value discount	(172)
Operating lease liabilities	$	2,194