NOTE

LEASES

We have operating leases for certain manufacturing sites, office space, and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from

one

five

years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do

not

contain any material residual value guarantees or material restrictive covenants. At

September 30, 2019,

we do

not

have material lease commitments that have

not

commenced.

The components of lease expense were as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
Lease Cost	2019		2019
Operating lease cost	$	253	$	785
Finance lease interest cost		21		54
Finance lease amortization expense		65		196
Total lease cost	$	339	$	1,035

Supplemental balance sheet information related to leases was as follows:

	Balance Sheet Location	September 30 , 2019
Assets
Operating lease assets	Operating lease assets	$	5,018
Finance lease assets	Property, Plant and Equipment		1,834
Total leased assets			6,852

Liabilities
Current
Current operating lease liabilities	Current Portion of Operating Lease Obligations		841
Current finance lease liabilities	Current Portion of Finance Lease Obligations		476
Noncurrent
Long-term operating lease liabilities	Long Term Operating Lease Liabilities, Net		4,517
Long term finance lease liabilities	Long Term Finance Lease Obligations, Net		1,168
Total lease liabilities		$	7,002

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended September 30 ,
	2019
Operating leases
Cash paid for amounts included in the measurement of lease liabilities	$	555
Right-of-use assets obtained in exchange for lease obligations	$	—

Maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases			Total
Remaining 2019	$	191		$	133		$	324
2020		858			534			1,392
2021		722			534			1,256
2022		726			359			1,085
2023		738			138			876
Thereafter		3,381			102			3,483
Total lease payments	$	6,616		$	1,800		$	8,416
Less: Interest		(1,258	)		(156	)		(1,414	)
Present value of lease liabilities	$	5,358		$	1,644		$	7,002

The lease term and discount rate at

June 30, 2019

were as follows:

Weighted-average remaining lease term (years)
Operating leases	7.6
Finance leases	3.4
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	5.4	%

Rent expense for our operating leases the

three

and

nine

months ended

September 30, 2018

as accounted under ASC

840,

Leases

, was

$297

and

$951,

respectively.

The future minimum lease commitments as of

December 31, 2018,

under ASC

840

are as follows:

	Operating Leases
2019	$	1,024
2020		858
2021		722
2022		726
2023		738
Thereafter		3,380
Total minimum obligations	$	7,448