Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Leases

The Company has operating and finance leases for its corporate, manufacturing, and international facilities as well as certain equipment. Its leases have remaining terms of less than 1 year to up to 9 years, including available options to extend some of its lease terms for up to 5 years. One of its lease agreements has an early termination option within one year. As the interest rates implicit in the Company's leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings.

In May 2020, the Company modified one of its office lease agreements and obtained a deferral of 2 months rental payments amid the pandemic. According to FASB Staff Q&A on Topic 842 and 841, because the amount of the total consideration paid under the modified lease agreement is substantially the same as the original agreement, except the deferral of the lease payments which only affect the timing of the payments, the Company accounted for the concession as if no changes to the lease contract were made and continues to recognize expenses during the deferral period.

The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense are as follows:

	Three months ended June 30,				Six months ended June 30,
Dollars in thousands	2021		2020		2021		2020
Operating lease cost	$	129	$	158	$	265	$	316
Finance lease cost:
Amortization of right-of-use assets	3		4		7		7
Interest on lease liabilities	1		1		2		3
Total finance lease cost	$	4	$	5	$	9	$	10

Supplemental balance sheet information related to leases as of the periods presented are as follows:

Dollars in thousands	June 30, 2021		December 31, 2020
Operating Leases
Other assets	$	1,832	$	2,001
Capital lease obligation, current	453		422
Other long-term liabilities	1,512		1,761
Total operating lease liabilities	1,965		2,183
Finance Leases
Property, plant and equipment	82		81
Accumulated depreciation	(36)		(25)
Property, plant and equipment, net	46		56
Capital lease obligation, current	14		14
Other long-term liabilities	36		43
Total finance lease liabilities	$	50	$	57

The weighted average remaining lease terms as of June 30, 2021 for operating and financing leases were 5.5 years and 3.2 years, respectively. The weighted average discount rates for operating and finance leases as of June 30, 2021 were 8.4% and 8.0%, respectively.

As of June 30, 2021, maturities of lease liabilities are as follows (in thousands):

	Operating		Financing
	Leases		Leases
2021	$	277	$	9
2022	553		18
2023	552		18
2024	239		12
2025	211		—
2026	211		—
Thereafter	435		—
Total lease payments	2,478		57
Less imputed interest	513		7
Total	$	1,965	$	50

Leases

Leases

The Company has operating and finance leases for its corporate, manufacturing, and international facilities as well as certain equipment. Its leases have remaining terms of less than 1 year to up to 9 years, including available options to extend some of its lease terms for up to 5 years. One of its lease agreements has an early termination option within one year. As the interest rates implicit in the Company's leases are typically not readily determinable, the Company has elected to utilize an incremental borrowing rate as the discount rate, determined based on the expected term of the lease, the Company’s credit risk and existing borrowings.

In May 2020, the Company modified one of its office lease agreements and obtained a deferral of 2 months rental payments amid the pandemic. According to FASB Staff Q&A on Topic 842 and 841, because the amount of the total consideration paid under the modified lease agreement is substantially the same as the original agreement, except the deferral of the lease payments which only affect the timing of the payments, the Company accounted for the concession as if no changes to the lease contract were made and continues to recognize expenses during the deferral period.

The discount rates utilized ranged from 4.86% to 8.60% and were utilized to determine the present value of the lease liabilities. The components of lease expense are as follows:

	Three months ended June 30,				Six months ended June 30,
Dollars in thousands	2021		2020		2021		2020
Operating lease cost	$	129	$	158	$	265	$	316
Finance lease cost:
Amortization of right-of-use assets	3		4		7		7
Interest on lease liabilities	1		1		2		3
Total finance lease cost	$	4	$	5	$	9	$	10

Supplemental balance sheet information related to leases as of the periods presented are as follows:

Dollars in thousands	June 30, 2021		December 31, 2020
Operating Leases
Other assets	$	1,832	$	2,001
Capital lease obligation, current	453		422
Other long-term liabilities	1,512		1,761
Total operating lease liabilities	1,965		2,183
Finance Leases
Property, plant and equipment	82		81
Accumulated depreciation	(36)		(25)
Property, plant and equipment, net	46		56
Capital lease obligation, current	14		14
Other long-term liabilities	36		43
Total finance lease liabilities	$	50	$	57

The weighted average remaining lease terms as of June 30, 2021 for operating and financing leases were 5.5 years and 3.2 years, respectively. The weighted average discount rates for operating and finance leases as of June 30, 2021 were 8.4% and 8.0%, respectively.

As of June 30, 2021, maturities of lease liabilities are as follows (in thousands):

	Operating		Financing
	Leases		Leases
2021	$	277	$	9
2022	553		18
2023	552		18
2024	239		12
2025	211		—
2026	211		—
Thereafter	435		—
Total lease payments	2,478		57
Less imputed interest	513		7
Total	$	1,965	$	50