Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2019

NOTE 16. 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 December 31, 2019 are as follows:


	Balance Sheet Classification	December 31, 2019

Assets
Operating lease ROU assets	Other long-term assets	$	1,200

Liabilities
Current operating lease liabilities	Accounts payable and accrued liabilities	$	681
Noncurrent operating lease liabilities	Other long-term liabilities	$	500

Operating lease costs are as follows:


	Affected line item in the Consolidated	Year Ended
	Statements of Comprehensive Income	December 31, 2019
Lease costs	Cost of goods sold, Selling, general and administrative	$	750
Variable lease costs	Cost of goods sold, Selling, general and administrative		208
Short-term lease costs	Cost of goods sold, Selling, general and administrative		228
		$	1,186

The maturity of operating lease liabilities as of December 31, 2019 are as follows:


Years Ending December 31,	Operating Lease Payments
2020	$	732
2021		344
2022		88
2023		28
2024 and thereafter		38
Total future lease payments		1,230
Less: amount representing interest		(49)
Present value of future lease payments		1,181
Less: current lease obligations		(681)
Long-term lease obligations	$	500

As of December 31, 2019, our operating leases have a weighted-average remaining lease term of 2.0 years and a weighted-average discount rate of 3.97%. Total rent expense of the Company for the years ended December 31, 2018 and 2017 was $838 and $865, respectively, as determined prior to the adoption of ASC 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 ASC 842 are as follows:


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