Leases

3 Months Ended

Mar. 31, 2022

Leases

Leases

4. Leases

At the inception of an arrangement, the Company determines if an arrangement is, or contains, a lease based on facts and circumstances present in that arrangement. Lease classifications, recognition, and measurement are then determined at the lease commencement date.

The Company’s operating lease right-of-use (“ROU”) assets and operating lease liabilities represent primarily leases for office and warehouse spaces used to conduct our business. Finance leases consist primarily of processing and transport equipment used by our facilities’ operations.

The components of lease cost for the Company’s leases were as follows (in thousands):

	Three Months Ended
	March 31,
	2022		2021
Operating Lease:
Lease cost	$	157	$	111
Finance Leases:
Amortization of ROU assets		47		59
Interest on lease liability		11		19
		58		78
Short-term lease rent expense		3		3
Total lease cost	$	218	$	192

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2022 were:

	Operating Leases			Finance Leases
Weighted average remaining lease terms (years)		6.7			4.0
Weighted average discount rate		7.6	%		6.1	%

The weighted average remaining lease term and the weighted average discount rate for operating and finance leases at March 31, 2021 were:

	Operating Leases			Finance Leases
Weighted average remaining lease terms (years)		7.8			3.4
Weighted average discount rate		7.8	%		6.8	%

The following table reconciles the undiscounted cash flows for the operating and finance leases at March 31, 2022 to the operating and finance lease liabilities recorded on the balance sheet (in thousands):

	Operating Leases			Finance Leases
2022 (Remaining)	$	433		$	315
2023		560			327
2024		419			323
2025		328			300
2026		304			171
2027 and thereafter		955			20
Total undiscounted lease payments		2,999			1,456
Less: Imputed interest		(662	)		(182	)
Present value of lease payments	$	2,337		$	1,274
Current portion of operating lease obligations	$	416		$	—
Long-term operating lease obligations, less current portion	$	1,921		$	—
Current portion of finance lease obligations	$	—		$	354
Long-term finance lease obligations, less current portion	$	—		$	920

Supplemental cash flow and other information related to our leases were as follows (in thousands):

	Three Months Ended
	March 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow from operating leases	$	143	$	101
Operating cash flow from finance leases	$	11	$	19
Financing cash flow from finance leases	$	58	$	114
ROU assets obtained in exchange for lease obligations for:
Finance liabilities	$	147	$	—
Operating liabilities	$	—	$	—