Leases

6 Months Ended

Jun. 30, 2021

6. LEASES

The Company has operating and finance leases for offices, manufacturing and warehouse facilities and computer equipment. The Company’s leases have remaining lease terms of one year to ten years. Options to renew or extend leases beyond their initial term have been excluded from measurement of the ROU assets and lease liabilities for the majority of leases as exercise is not reasonably certain.

The weighted average remaining lease term and the discount rate for the reporting periods is as follows:



	June 30, 2021			December 31, 2020
Operating Leases
Weighted average remaining lease term (years)		3.5			3.2
Weighted average discount rate		5.61	%		5.68	%

Finance leases
Weighted average remaining lease term (years)		9.1			9.7
Weighted average discount rate		6.91	%		6.91	%

In connection with the terms of the Company’s corporate headquarters lease, a letter of credit for $1,250 was issued to the building lessor in October 2015. The letter of credit is renewed annually and remains outstanding as of June 30, 2021.

The components of lease expense are as follows:



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Operating lease cost	$	203	$	340	$	481	$	690

Finance lease cost:
Amortization of right-of-use assets		242		263		484		526
Interest on lease liabilities		200		212		403		428
Total finance lease cost	$	442	$	475	$	887	$	954

Short term lease expense was not significant for the three and six months ended June 30, 2021 and 2020.

Supplemental cash flow information related to leases was as follows:


	Six Months Ended		Six Months Ended
	June 30, 2021		June 30, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	494	$	666
Operating cash flows from finance leases		403		428
Financing cash flows from finance leases		399		280

Right-of-use assets obtained in exchange for lease obligations:
Operating Leases		1,221		1,691
Finance Leases		—		—
Early termination of operating lease		—		2,473

Supplemental balance sheet information related to leases was as follows:



	June 30, 2021		December 31, 2020
Operating Leases
Operating lease right-of-use assets	$	2,683	$	1,914

Other current liabilities and current maturities of debt and leases		973		927
Operating lease liabilities		1,833		1,180
Total operating lease liabilities	$	2,806		2,107

Finance Leases
Property and equipment, at cost	$	14,650		14,659
Accumulated depreciation		(5,570)		(5,247)
Property and equipment, net	$	9,080		9,412

Other current liabilities and current maturities of debt and leases	$	853		823
Finance lease liabilities		10,540		10,969
Total finance lease liabilities	$	11,393		11,792

Maturities of lease liabilities as of June 30, 2021 were as follows:



	Operating Leases		Finance Leases
2021 (excluding the six months ended June 30, 2021)	$	415	$	806
2022		895		1,629
2023		688		1,652
2024		615		1,674
2025		354		1,625
2026 and thereafter		—		8,172
Total payments	$	2,967	$	15,558
Less imputed interest		(161)		(4,165)
Total	$	2,806	$	11,393