Leases

3 Months Ended

Mar. 31, 2021

The Company leases its production facilities and administrative offices as well as certain equipment used in our operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to five years. The Company occupies a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2021. The Company also occupies two other manufacturing facilities, a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2025, and a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2023. In addition, the Company occupies 4,100 square feet of office space in Hackensack, New Jersey under a lease expiring on July 1, 2024. This lease is currently being offered for sublease.

At March 31, 2021, the Company had operating and finance lease liabilities of $4.9 million and right-of-use assets of $4.9 million, which are included in the consolidated balance sheet.

At December 31, 2020, the Company had operating lease liabilities of $3.0 million and right-of-use assets of $2.9 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 March 31, 2021			Three Months Ended March 31, 2020
Operating leases
Operating lease cost	$	419		$	443
Variable lease cost	102			189
Operating lease expense	521			632
Finance leases
Amortization of right-of-use assets	45			—
Interest on lease obligations	13			—
Finance lease expense	58			—
Short-term lease rent expense	4			4
Total rent expense	$	583		$	636

Other information
Operating cash flows from operating leases	$	425		$	445
Operating cash flows from finance leases	$	13		$	—
Financing cash flows from finance leases	$	37		$	—
Right of use assets exchanged for operating lease liabilities	$	1,896		$	—
Right of use assets exchanged for finance lease liabilities	$	460		$	—
Weighted-average remaining lease term – operating leases	3.6			2.6
Weighted-average remaining lease term – finance leases	5.7			0.0
Weighted-average discount rate – operating leases	6.3		%	6.8		%
Weighted-average discount rate – finance leases	5.4		%	—		%

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


	Operating		Finance
Year ending December 31, 2021 (remaining)	$	1,107	$	199
Year ending December 31, 2022	1,083		269
Year ending December 31, 2023	740		272
Year ending December 31, 2024	555		270
Year ending December 31, 2025	455		269
Remaining future payments	79		272
Total	$	4,019	$	1,551
Less present value discount	(417)		(214)
Operating and finance lease liabilities	$	3,602	$	1,337

Leases

At March 31, 2021, the Company had operating and finance lease liabilities of $4.9 million and right-of-use assets of $4.9 million, which are included in the consolidated balance sheet.

At December 31, 2020, the Company had operating lease liabilities of $3.0 million and right-of-use assets of $2.9 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 March 31, 2021			Three Months Ended March 31, 2020
Operating leases
Operating lease cost	$	419		$	443
Variable lease cost	102			189
Operating lease expense	521			632
Finance leases
Amortization of right-of-use assets	45			—
Interest on lease obligations	13			—
Finance lease expense	58			—
Short-term lease rent expense	4			4
Total rent expense	$	583		$	636

Other information
Operating cash flows from operating leases	$	425		$	445
Operating cash flows from finance leases	$	13		$	—
Financing cash flows from finance leases	$	37		$	—
Right of use assets exchanged for operating lease liabilities	$	1,896		$	—
Right of use assets exchanged for finance lease liabilities	$	460		$	—
Weighted-average remaining lease term – operating leases	3.6			2.6
Weighted-average remaining lease term – finance leases	5.7			0.0
Weighted-average discount rate – operating leases	6.3		%	6.8		%
Weighted-average discount rate – finance leases	5.4		%	—		%

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


	Operating		Finance
Year ending December 31, 2021 (remaining)	$	1,107	$	199
Year ending December 31, 2022	1,083		269
Year ending December 31, 2023	740		272
Year ending December 31, 2024	555		270
Year ending December 31, 2025	455		269
Remaining future payments	79		272
Total	$	4,019	$	1,551
Less present value discount	(417)		(214)
Operating and finance lease liabilities	$	3,602	$	1,337