The Company leases certain warehouses, office space, machinery, vehicles and equipment. Leases with an initial term of 12 months or shorter are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the applicable lease term.

The Company is not aware of any variable lease payments, residual value guarantees, covenants or restrictions imposed by the leases. Most leases include one or more options to renew, with renewal terms that can extend the lease term. The exercise of these lease renewal options is at our sole discretion. The depreciable life of assets is limited by the expected lease term for finance leases.

If there was a discount rate explicit in the lease, then such discount rate was used. For those leases with no explicit or implicit interest rate, an incremental borrowing rate was used. The weighted average remaining useful life for operating and finance leases was 4 and 6 years, respectively. The weighted average discount rate for operating and finance leases was 5.2% and 12.5% respectively.

Leases	Classification	June 30, 2022		December 31, 2021
Assets
Operating lease assets	Operating lease assets	$	5,756	$	3,563
Financing lease assets	Fixed assets, net		2,210		2,303
Total leased assets		$	7,966	$	5,866

Liabilities
Current
Operating	Current liabilities	$	1,653	$	1,064
Financing	Current liabilities		470		399

Non-current
Operating	Non-current liabilities		4,103		2,499
Financing	Non-current liabilities		3,656		3,822
Total lease liabilities		$	9,882	$	7,784

		Three months ended June 30,				Six months ended June 30,
Lease Cost	Classification	2022		2021		2022		2021
Operating lease costs	Operating lease assets	$	214	$	398	$	510	$	702
Finance lease cost
Amortization of leased assets	Amortization		96		91		187		182
Interest on lease liabilities	Interest expense		128		139		259		280
Lease cost		$	438	$	628	$	956	$	1,164

	Three months ended June 30,				Six months ended June 30,
Other Information	2022		2021		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	214	$	426	$	510	$	758
Operating cash flows from finance leases	$	128	$	139	$	259	$	280
Financing cash flows from finance leases	$	107	$	95	$	200	$	171

Future principal minimum lease payments for the period ending June 30 for the next five years and subsequent are:

	Operating Leases			Capital Leases
2023	$	1,697		$	950
2024		1,382			978
2025		1,094			1,003
2026		929			1,003
2027		868			1,033
And subsequent		159			1,145
Total undiscounted lease payments		6,129			6,112
Less interest		(373	)		(1,986	)
Total liabilities	$	5,756		$	4,126
Less current maturities		(1,653	)		(470	)
Non-current lease liabilities	$	4,103		$	3,656

In connection with our acquisition of Rabern, the Company became the lessee of two buildings from HTS Management LLC (“HTS”), an entity controlled by Steven Berner, who is a key member of Rabern management. HTS operates as a holding company for property and as a single lessee leasing company for business use property for Rabern. HTS’s ongoing activities preceding and succeeding the Rabern acquisition relate to financing, purchasing, leasing and holding property leased to Rabern. Based on these activities, HTS would be subject to interest rate risk and real estate investment pricing risk related to holding the real estate as an investment. These risks represent the potential variability to be considered as passed to interest holders. Although we have a variable interest through our relationship with Mr. Berner, such variability is not passed on to Rabern in connection with the arrangement, and therefore Rabern is not the primary beneficiary of the VIE. Furthermore, all risks and benefits of the significant activities of HTS are passed to Mr. Berner directly and do not represent a direct or indirect obligation for Rabern.