Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

Leases

The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2020 and December 31, 2019 (in thousands):

	Classification	September 30, 2020		December 31, 2019
Assets
Operating lease assets	Right-of-use assets	$	881	$	965
Finance lease assets	Property and equipment, net of accumulated depreciation	8,425		9,302
Total lease assets		$	9,306	$	10,267
Liabilities
Current
Operating	Current portion of operating lease obligations	$	383	$	364
Finance	Current portion of finance lease obligation - related parties	1,312		3,440
Noncurrent
Operating	Long-term portion of operating lease obligation	565		650
Finance	Finance lease obligations, net of current portion - related parties	—		648
Total lease liabilities		$	2,260	$	5,102

The following table summarizes the components of lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands, unaudited):

Lease Cost	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Operating lease cost	Cost of sales	$	42	$	29	$	122	$	116
Operating lease cost	Selling, general and administrative expenses	4		75		185		182
Finance lease cost
Amortization of leased assets	Depreciation	294		274		879		858
Interest on lease liabilities	Interest expense	104		170		400		510
Net lease cost		$	444	$	548	$	1,586	$	1,666

The following schedule presents the future minimum lease payments for our operating and finance obligations at September 30, 2020 (in thousands):

	Operating Leases		Finance Leases		Total
Remainder 2020	$	139	$	727	$	866
2021	429		646		1,075
2022	172		—		172
2023	145		—		145
2024	149		—		149
Thereafter	25		—		25
Total lease payments	1,059		1,373		2,432
Less: Interest	(111)		(61)		(172)
Present value of lease liabilities	$	948	$	1,312	$	2,260

Lease term and discount rates for our operating and finance lease obligations are as follows:

Lease Term and Discount Rate	September 30, 2020
Weighted-average remaining lease term (years)
Operating leases	3.1
Finance leases	0.3
Weighted-average discount rate
Operating leases	7.3%
Finance leases	8.9%

The following table summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2019:

Other information	September 30, 2020		September 30, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	287	$	298
Financing cash flows from finance leases	2,640		2,582
Interest paid	400		510
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,163	$	1,173

Leases

Leases

The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of September 30, 2020 and December 31, 2019 (in thousands):

	Classification	September 30, 2020		December 31, 2019
Assets
Operating lease assets	Right-of-use assets	$	881	$	965
Finance lease assets	Property and equipment, net of accumulated depreciation	8,425		9,302
Total lease assets		$	9,306	$	10,267
Liabilities
Current
Operating	Current portion of operating lease obligations	$	383	$	364
Finance	Current portion of finance lease obligation - related parties	1,312		3,440
Noncurrent
Operating	Long-term portion of operating lease obligation	565		650
Finance	Finance lease obligations, net of current portion - related parties	—		648
Total lease liabilities		$	2,260	$	5,102

The following table summarizes the components of lease expense for the three and nine months ended September 30, 2020 and 2019 (in thousands, unaudited):

Lease Cost	Classification	Three Months Ended September 30,				Nine Months Ended September 30,
		2020		2019		2020		2019
Operating lease cost	Cost of sales	$	42	$	29	$	122	$	116
Operating lease cost	Selling, general and administrative expenses	4		75		185		182
Finance lease cost
Amortization of leased assets	Depreciation	294		274		879		858
Interest on lease liabilities	Interest expense	104		170		400		510
Net lease cost		$	444	$	548	$	1,586	$	1,666

The following schedule presents the future minimum lease payments for our operating and finance obligations at September 30, 2020 (in thousands):

	Operating Leases		Finance Leases		Total
Remainder 2020	$	139	$	727	$	866
2021	429		646		1,075
2022	172		—		172
2023	145		—		145
2024	149		—		149
Thereafter	25		—		25
Total lease payments	1,059		1,373		2,432
Less: Interest	(111)		(61)		(172)
Present value of lease liabilities	$	948	$	1,312	$	2,260

Lease term and discount rates for our operating and finance lease obligations are as follows:

Lease Term and Discount Rate	September 30, 2020
Weighted-average remaining lease term (years)
Operating leases	3.1
Finance leases	0.3
Weighted-average discount rate
Operating leases	7.3%
Finance leases	8.9%

The following table summarizes the supplemental cash flow information related to leases for the nine months ended September 30, 2020 and 2019:

Other information	September 30, 2020		September 30, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	287	$	298
Financing cash flows from finance leases	2,640		2,582
Interest paid	400		510
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,163	$	1,173