Leases

12 Months Ended

Dec. 31, 2023

Rockwell leases its production facilities and administrative offices as well as certain equipment used in its operations including leases on transportation equipment used in the delivery of its products. The lease terms range from monthly to seven years. Rockwell occupies a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2024. Rockwell 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 2026. In addition, Rockwell occupies 4,100 square feet of office space in Hackensack, New Jersey under a lease expiring on October 31, 2024. This lease was subleased on December 15, 2021 with an expiration date of October 31, 2024.

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


	For the year ended December 31,
	2023			2022
Operating leases
Operating lease cost	$	1,672		$	1,710
Variable lease cost	497			388
Operating lease expense	2,169			2,098
Finance leases
Amortization of right-of-use assets	565			565
Interest on lease obligations	147			179
Finance lease expense	712			744
Short-term lease rent expense	17			17
Total rent expense	$	2,898		$	2,859

Other information
Operating cash flows from operating leases	$	1,777		$	1,772
Operating cash flows from finance leases	$	147		$	179
Financing cash flows from finance leases	$	522		$	482
Right of use assets obtained in exchange for operating lease liabilities	$	—		$	768

Weighted-average remaining lease term - operating leases	2.3			3.0
Weighted-average remaining lease term – finance leases	3.5			4.4
Weighted-average discount rate - operating leases	6.5		%	6.4		%
Weighted-average discount rate – finance leases	6.4		%	6.4		%

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


	Operating		Finance
Year ending December 31, 2024	$	1,511	$	672
Year ending December 31, 2025	1,021		676
Year Ended December 31, 2026	362		666
Year Ended December 31, 2027	129		311
Year Ended December 31, 2028	2		—
Total	3,025		2,325
Less present value discount	(211)		(237)
Operating and Finance lease liabilities.	$	2,814	$	2,088

Leases

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


	For the year ended December 31,
	2023			2022
Operating leases
Operating lease cost	$	1,672		$	1,710
Variable lease cost	497			388
Operating lease expense	2,169			2,098
Finance leases
Amortization of right-of-use assets	565			565
Interest on lease obligations	147			179
Finance lease expense	712			744
Short-term lease rent expense	17			17
Total rent expense	$	2,898		$	2,859

Other information
Operating cash flows from operating leases	$	1,777		$	1,772
Operating cash flows from finance leases	$	147		$	179
Financing cash flows from finance leases	$	522		$	482
Right of use assets obtained in exchange for operating lease liabilities	$	—		$	768

Weighted-average remaining lease term - operating leases	2.3			3.0
Weighted-average remaining lease term – finance leases	3.5			4.4
Weighted-average discount rate - operating leases	6.5		%	6.4		%
Weighted-average discount rate – finance leases	6.4		%	6.4		%

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


	Operating		Finance
Year ending December 31, 2024	$	1,511	$	672
Year ending December 31, 2025	1,021		676
Year Ended December 31, 2026	362		666
Year Ended December 31, 2027	129		311
Year Ended December 31, 2028	2		—
Total	3,025		2,325
Less present value discount	(211)		(237)
Operating and Finance lease liabilities.	$	2,814	$	2,088