(

)

Leases

The Company has operating leases for offices, manufacturing plants, vehicles and certain office and manufacturing equipment. Leases with an initial term of

months or less are

not

recorded on the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are

not

included in the ROU assets or operating lease liabilities. These are expensed as incurred and recorded as variable lease expense. The Company determines if an arrangement is a lease at the inception of a contract. Operating lease ROU assets and operating lease liabilities are stated separately in the condensed consolidated balance sheet.

ROU assets represent the Company's right to use an underlying asset during the lease term and operating lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise that option. ROU assets will also be adjusted for any deferred or accrued rent. As the Company's operating leases do

not

typically provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. Operating fixed lease expense is recognized on a straight-line basis over the lease term.

	Three Months Ended
	March 31, ($'s in thousands)
	2020			2019
Lease Cost:
Operating	$	305		$	307
Variable		57			57
Short-term		7			6
Total lease cost	$	369		$	370

Cash paid for amounts included in measurement of lease liabilities:
Operating	$	305		$	303

Weighted-average remaining lease term (years):
Operating		2.45			3.37
Weighted-average discount rate:
Operating		4.45	%		4.45	%

The aggregate future lease payments for operating leases as of

March 31, 2020

were as follows (in thousands):

Remainder of 2020	$	874
2021		1,121
2022		959
2023		36
2024		-
Thereafter		-
Total lease payments		2,990
Less: Interest		(163	)
Present value of lease liabilities	$	2,827