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Leases
12 Months Ended
Dec. 31, 2019
Disclosure Text Block [Abstract]  
Lessee, Operating Leases [Text Block]

13.  Leases


Certain premises are occupied under operating leases that expire at varying dates through 2023. Certain of these leases provide for the payment of real estate taxes and other occupancy costs. On June 21, 2016, the Company entered into a lease for a manufacturing facility in Hazelwood, Missouri for a seven-year lease period at an initial annual rental of $317,000. On December 23, 2019, the Company entered into a lease for office space in Urbandale, Iowa for a two-year lease period at an initial annual rental of $28,000. On February 1, 2016, the Company sold its Des Moines, Iowa facility in a sale/leaseback transaction. The lease was for a two-year lease period at an annual rental of $158,000. In 2017, the Company extended the lease through February 1, 2019 at the same rate. In 2018, the Company extended the lease for another year through February 1, 2020 at the same rate. Rent expense was $608,000 and $662,000 for the years ended December 31, 2019 and 2018, respectively.


The Company leases administrative and manufacturing facilities through operating lease agreements. The Company has no finance leases as of December 31, 2019.  Our leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common area or other maintenance costs). The facility leases include one or more options to renew.  The exercise of lease renewal options is typically at our sole discretion, therefore, the renewals to extend the lease terms are not included in our ROU assets or lease liabilities as they are not reasonably certain of exercise.  We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term.


Operating leases result in the recognition of ROU assets and lease liabilities on the Consolidated Balance Sheets.  ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments.  Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more.  Lease expense is recognized on a straight-line basis over the lease term.  Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets.  The primary leases we enter into with initial terms of 12 months or less are for equipment.


Supplemental information regarding leases:


 

2019

In thousands, unless otherwise noted

Balance Sheet:

 

 

ROU assets

$

1,141

Current lease liabilities

 

284

Non-current lease liabilities

893

Total lease liabilities

 

1,177

Weighted average remaining lease term (years)

2.5

Weighted average discount rate

 

9.0%

Future minimum lease payments:

2020

$

377

2021

370

2022

 

348

2023

295

2024

 

-

Thereafter

 

-

Total

 

1,390

Less: Imputed interest

 

213

Total lease liabilities

 

1,177

Less: Current lease liabilities

 

284

Long-term lease liabilities

$

893


Supplemental cash flow information regarding leases:


In thousands

2019

Operating cash flow information:

 

 

Cash paid for amounts included in the measurement of lease liabilities

$

488

Non-cash activity:

 

 

ROU assets obtained in exchange for lease liabilities

 

212


Total operating lease expense and short-term lease expense was $497,000 and $111,000 for the year ended December 31, 2019.