. LEASE

OBLIGATIONS

In accordance with ASC

842,

Leases, the Company’s leases with terms longer than

twelve

months are recorded on the consolidated balance sheets. The Company leases certain office and warehouse space, as well as production and office equipment.

The Company had

$14,138

and

$6,527

of operating lease right-of-use assets recorded in property, plant and equipment, net as of

June 30, 2019

and

June 30, 2018,

respectively. The Company had

$14,130

and

$6,527

of operating lease liabilities recorded in lease obligations as of

June 30, 2019

and

June 30, 2018,

respectively.

The Company had

$545

and

$11

of finance lease right-of-use assets recorded in property, plant and equipment, net as of

June 30, 2019

and

June 30, 2018,

respectively. The Company had

$553

and

of finance lease liabilities recorded in lease obligations as of

June 30, 2019

and

June 30, 2018,

respectively

Approximate future minimum rental commitments under non-cancellable leases as of

June 30, 2019

were as follows:

	Operating Leases			Finance Leases
2020	$	3,186		$	136
2021		2,489			136
2022		1,950			136
2023		1,722			132
2024		1,532			112
Thereafter		11,112			-
Total future lease payments		21,991			652
Less: Amount representing interest		(7,861	)		(99	)
Present value of future payments	$	14,130		$	553

The components of lease expense were as follows:

	For the Year Ended
	June 30, 2019			June 30, 2018
Finance lease cost:
Amortization of right-of-use assets	$	27		$	3
Interest on lease liabilities		8			1
Operating lease cost		3,348			2,462
Short-term lease cost		40			39
Variable lease cost		37			8
Total lease cost		3,460			2,513
Less: Sublease income		(222	)		(204	)
Net lease cost	$	3,238		$	2,309

Other information related to leases was as follows:

	For the Year Ended
	June 30, 2019			June 30, 2018
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,338		$	2,417
Operating cash flows from finance leases		18			3
Financing cash flows from finance leases		9			1
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases		13,875			4,019
Finance leases		553			-
Weighted average remaining lease term (years):
Operating leases		11.1			5.6
Finance lease		4.8			4.0
Weighted average discount rate:
Operating leases		7.7	%		7.2	%
Finance leases		7.3	%		3.9	%