Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

9 Months Ended

Sep. 30, 2019

NOTE 14. LEASES

The Company has entered into leases for certain facilities, vehicles and other equipment. Our operating leases have remaining contractual terms of up to six years, some of which include options to extend the leases for up to five years. Our operating lease costs are primarily related to facility leases for inventory warehousing, administration offices and vehicles. The Company’s finance leases are immaterial.

Operating lease ROU assets and liabilities as of September 30, 2019 are as follows:


	Balance Sheet Classification	September 30, 2019

Assets
Operating lease ROU assets	Other long-term assets	$	1,343

Liabilities
Current operating lease liabilities	Accounts payable and accrued liabilities	$	704
Noncurrent operating lease liabilities	Other long-term liabilities	$	625

Operating lease costs are as follows:


	Affected line item in the Condensed Consolidated	Three Months Ended		Nine Months Ended
	Statements of Comprehensive Income	September 30, 2019		September 30, 2019
Lease costs	Cost of goods sold, Selling, general and administrative	$	197	$	560
Variable lease costs	Cost of goods sold, Selling, general and administrative		41		156
Short-term lease costs	Cost of goods sold, Selling, general and administrative		56		165
		$	294	$	881

The maturity of operating lease liabilities as of September 30, 2019 are as follows:


Years Ending December 31,	Operating Lease Payments
2019 (excluding the nine months ended September 30, 2019)	$	193
2020		725
2021		339
2022		86
2023 and thereafter		59
Total future lease payments		1,402
Less: amount representing interest		(73)
Present value of future lease payments		1,329
Less: current lease obligations		(704)
Long-term lease obligations	$	625

As of September 30, 2019, our operating leases have a weighted-average remaining lease term of 2.2 years and a weighted-average discount rate of 3.98%. Total rent expense of the Company for the three and nine months ended September 30, 2018 was $193 and $614, respectively, as determined prior to the adoption of ASU 842. Future minimum lease payments required under noncancelable operating leases that have initial or remaining noncancelable lease term in excess of one year at December 31, 2018 as determined prior to the adoption of ASU 842 are as follows:


Years Ending December 31,	Future Minimum Lease Payments
2019	$	687
2020		634
2021		243
2022		24
2023		-
Thereafter		-
	$	1,588