. LEASES

The Company adopted Accounting Standards Codification

842,

Leases "ASC

842"

July 1, 2019.

The Company has leased buildings, manufacturing equipment and autos that are classified as ROU assets and operating lease liabilities in the Company's Consolidated Balance Sheets. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date for leases exceeding

months. Minimum lease payments include only the fixed lease component of the agreement.

The Company has implemented internal controls such as updated accounting policies and expanded data gathering procedures to comply with the additional disclosure requirements. The adoption had a material impact on the Company's Consolidated Balance Sheets, but did

not

have a material impact on our Consolidated Statements of Operations or Consolidated Statements of Cash Flows. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases.

		Right-of- U se Assets				Operating Lease Obligations				Remaining Cash Commitment
Operating leases		$	4,465			$	4,560			$	5,422

The Company's weighted average discount rate and remaining term on lease liabilities is approximately

9.0%

and

4.2

years. As of

June 30, 2020,

the Company's financing leases are de minimis. The foreign exchange impact affecting the operating leases are de minimis. The Company has other operating lease agreements with commitments of less than

one

year or that are

not

significant. The Company elected the practical expedient option and as such, these lease payments are expensed as incurred.

The Company entered into

$0.3

million in operating lease commitments in the

twelve

months ended

June 30, 2020.

June 30, 2020,

the Company had the following fiscal year minimum operating lease commitments (in thousands):

	Operating Lease Commitments
2021		2,228
2022		928
2023		734
2024		707
2025		349
Thereafter		476
Subtotal	$	5,422
Imputed Interest		(862	)
Total		4,560