Leases

3 Months Ended

Mar. 31, 2021

9. Leases

We account for leases in accordance with ASC Topic 842: Leases.

We enter into lease agreements for the use of real estate space and certain other equipment under operating leases and we have no financing leases. Our leases are included in Right-of-use-assets and Lease liabilities in our Condensed Consolidated Balance Sheet. Our leases have remaining lease terms of one year to six years, some of which include options to extend. The majority of our leases with options to extend provide for extensions of up to five years with the ability to terminate the lease within one year. On February 28, 2020, we entered into an amendment to extend the lease on our facility in Ithaca, New York, which resulted in recording an additional right-of-use-asset and lease liability of $1.5 million. The lease, which was last amended on January 14, 2016, was scheduled to expire on May 31, 2021. The lease amendment provided for an extension of the lease for four additional years from June 1, 2021 to May 31, 2025. Lease expense is recognized on a straight-line basis over the lease term.

Operating lease expense for the three months ended March 31, 2021 and 2020 was $243 thousand and $251 thousand, respectively, and is reported as “Cost of sales”, “Engineering, design and product development expense”, “Selling and marketing expense”, and “General and administrative expense” in the Condensed Consolidated Statements of Operations. Operating lease expenses include short-term lease costs which were immaterial during the periods presented.

The following information represents supplemental disclosure for the statement of cash flows related to operating leases (in thousands):

	Three Months Ended
	March 31,
	2021		2020
Operating cash outflows from leases	$	262	$	259

The following summarizes additional information related to our leases as of March 31, 2021 and December 31, 2020:

	March 31, 2021			December 31, 2020
Weighted average remaining lease term (in years)		4.7			4.9
Weighted average discount rate		4.1	%		4.1	%

The maturity of the Company’s operating lease liabilities as of March 31, 2021 and December 31, 2020 were as follows (in thousands):

	March 31, 2021		December 31, 2020
2021	$	709	$	971
2022		880		879
2023		713		713
2024		718		718
2025		463		464
Thereafter		340		180
Total undiscounted lease payments		3,823		3,925
Less imputed interest		344		224
Total lease liabilities	$	3,479	$	3,701