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Leases
 9 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Leases Leases
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 2024. 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 September 30, 2021, the Company had operating and finance lease liabilities of $7.1 million and right-of-use assets of $6.9 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 September 30, 2021Three Months Ended September 30, 2020Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
Operating leases
Operating lease cost$457 $382 $1,309 $1,228 
Variable lease cost94 90 286 403 
Operating lease expense551 472 1,595 1,631 
Finance leases
Amortization of right-of-use assets73 — 184 — 
Interest on lease obligations22 — 55 — 
Finance lease expense95 — 239 — 
Short-term lease rent expense4 4 12 12 
Total rent expense$650 $476 $1,846 $1,643 
Other information
Operating cash flows from operating leases$444 $393 $1,298 $1,248 
Operating cash flows from finance leases$22 $— $56 $— 
Financing cash flows from finance leases$59 $— $152 $— 
Right of use assets exchanged for operating lease liabilities$718 $— $4,089 $— 
Right of use assets exchanged for finance lease liabilities$588 $— $1,365 $— 
Weighted-average remaining lease term – operating leases3.72.33.72.3
Weighted-average remaining lease term – finance leases5.50.05.50.0
Weighted-average discount rate – operating leases6.3 %6.8 %6.3 %6.8 %
Weighted-average discount rate – finance leases5.9 %— %5.9 %— %
Future minimum rental payments under operating lease agreements are as follows (in thousands):
OperatingFinance
Year ending December 31, 2021 (remaining)$470 $103 
Year ending December 31, 20221,746 418 
Year ending December 31, 20231,429 424 
Year ending December 31, 20241,076 424 
Year ending December 31, 2025616 426 
Remaining future payments345 526 
Total$5,682 $2,321 
Less present value discount(607)(338)
Operating and finance lease liabilities$5,075 $1,983 
Leases Leases
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 2024. 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 September 30, 2021, the Company had operating and finance lease liabilities of $7.1 million and right-of-use assets of $6.9 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 September 30, 2021Three Months Ended September 30, 2020Nine Months Ended September 30, 2021Nine Months Ended September 30, 2020
Operating leases
Operating lease cost$457 $382 $1,309 $1,228 
Variable lease cost94 90 286 403 
Operating lease expense551 472 1,595 1,631 
Finance leases
Amortization of right-of-use assets73 — 184 — 
Interest on lease obligations22 — 55 — 
Finance lease expense95 — 239 — 
Short-term lease rent expense4 4 12 12 
Total rent expense$650 $476 $1,846 $1,643 
Other information
Operating cash flows from operating leases$444 $393 $1,298 $1,248 
Operating cash flows from finance leases$22 $— $56 $— 
Financing cash flows from finance leases$59 $— $152 $— 
Right of use assets exchanged for operating lease liabilities$718 $— $4,089 $— 
Right of use assets exchanged for finance lease liabilities$588 $— $1,365 $— 
Weighted-average remaining lease term – operating leases3.72.33.72.3
Weighted-average remaining lease term – finance leases5.50.05.50.0
Weighted-average discount rate – operating leases6.3 %6.8 %6.3 %6.8 %
Weighted-average discount rate – finance leases5.9 %— %5.9 %— %
Future minimum rental payments under operating lease agreements are as follows (in thousands):
OperatingFinance
Year ending December 31, 2021 (remaining)$470 $103 
Year ending December 31, 20221,746 418 
Year ending December 31, 20231,429 424 
Year ending December 31, 20241,076 424 
Year ending December 31, 2025616 426 
Remaining future payments345 526 
Total$5,682 $2,321 
Less present value discount(607)(338)
Operating and finance lease liabilities$5,075 $1,983