Annual report pursuant to Section 13 and 15(d)

Leases

Leases

12 Months Ended

Dec. 31, 2020

NOTE 17. LEASES

The Company has entered into leases for certain facilities, vehicles and other equipment. Our operating leases have remaining contractual terms of up to nine years, some of which include options to extend the leases for up to ten 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, 2020 and 2019, were as follows:


	Balance Sheet Classification	December 31, 2020		December 31, 2019

Assets
Operating lease ROU assets	Other long-term assets	$	5,334	$	1,200

Liabilities
Current operating lease liabilities	Accounts payable and accrued liabilities	$	973	$	681
Noncurrent operating lease liabilities	Other long-term liabilities	$	4,414	$	500

Operating lease costs were as follows:


	Affected line item in the Consolidated	Year Ended
	Statements of Comprehensive Income	December 31, 2020		December 31, 2019
Lease costs	Cost of goods sold, Selling, general and administrative	$	940	$	750
Variable lease costs	Cost of goods sold, Selling, general and administrative		194		208
Short-term lease costs	Cost of goods sold, Selling, general and administrative		189		228
		$	1,323	$	1,186

The maturity of operating lease liabilities as of December 31, 2020 are as follows:


Years Ending December 31,	Operating Lease Payments
2021	$	1,067
2022		814
2023		732
2024		586
2025 and thereafter		2,618
Total future lease payments		5,817
Less: amount representing interest		(430)
Present value of future lease payments		5,387
Less: current lease obligations		(973)
Long-term lease obligations	$	4,414

As of December 31, 2020, our operating leases have a weighted-average remaining lease term of 4.32 years and a weighted-average discount rate of 2.24%. Total rent expense of the Company for the year ended December 31, 2018 was $838, as determined prior to the adoption of ASC 842.