NOTE 10. LEASES

The components of lease expense and cash flows from leases for 2019 follows (in thousands).

Finance lease cost:
Amortization of right-of use assets, included in cost of goods sold	$	60
Interest on lease liabilities		14
Operating lease cost, included in selling, general and administrative expenses:
Fixed leases cost		522
Variable lease cost		132
Short-term lease cost, included in cost of goods sold		21
Total lease cost	$	749

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	14
Operating cash flows from operating leases	$	522
Financing cash flows from finance leases	$	79

As of December 31, 2019, variable lease payments do not depend on a rate or index. As of December 31, 2019, property and equipment, net, includes $0.3 million of finance lease right-of-use-assets, with an original cost of $0.4 million.

As of December 31, 2019, we do not believe it is certain that we will exercise any renewal options. The remaining terms of our leases and the discount rates used in the calculation of the fair value of our leases as of December 31, 2019, follows.

	Operating Leases			Finance Leases
Remaining lease terms (in years)		0.3-13.2			1.1-4.5
Weighted average remaining lease terms (in years)		7.8			3.3
Discount rates		4.9%-9.0	%		4.3%-7.3	%
Weighted average discount rate		7.6	%		5.8	%

As of December 31, 2019, operating leases have maturities extending through 2032. Maturities of lease liabilities as of December 31, 2019, follows (in thousands).

	Operating Leases			Finance Leases
2020	$	525		$	115
2021		536			91
2022		548			68
2023		528			38
2024		428			11
Thereafter		1,469			-
Total lease payments		4,034			323
Amounts representing interest		(1,051	)		(32	)
Present value of lease obligations	$	2,983		$	291

Future annual minimum operating lease payments and finance lease maturities as of December 31, 2018, prepared in accordance with the guidance in effect prior to adoption of ASU 2016-02, follow (in thousands).

	Operating Leases		Finance Leases
2019	$	519	$	51
2020		525		51
2021		536		33
2022		548		5
2023		528		-
Thereafter		1,897		-
Total minimum lease payments	$	4,553		140
Amounts representing interest				(9	)
Present value of minimum payments			$	131