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Note 13 - Leases

12 Months Ended

Dec. 31, 2020

	(13)	Leases

		The Company has operating and finance leases for offices, manufacturing plants, vehicles and certain office and manufacturing equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts 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. 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 right of use (“ROU”) assets or 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 and finance lease ROU assets and operating and finance 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 lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and 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 it will exercise that option. ROU assets are also adjusted for any deferred or accrued rent. As the Company's 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.

	Year Ended
	December 31,
	($ in thousands)
	2020			2019
Lease Cost:
Finance lease cost:
Amortization of right of use assets	$	10		$	-
Interest on lease liabilities		2			-
Operating lease cost		1,207			1,222
Variable lease cost		215			219
Short-term lease cost		28			27
Total lease cost	$	1,462		$	1,468

Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	1,212		$	1,208
Financing cash flows from finance leases		11			-
ROU assets obtained in exchange for finance lease obligations		110			-

Weighted-average remaining lease term (years):
Finance		6.33			-
Operating		1.78			2.69
Weighted-average discount rate:
Finance		2.26	%		-
Operating		4.37	%		4.45	%

The aggregate future lease payments for leases as of December 31, 2020 and 2019 were as follows (in thousands):

	December 31, 2020						December 31, 2019
	Finance			Operating			Operating
2021	$	17		$	1,177		$	1,173
2022		17			973			1,118
2023		17			38			957
2024		17			-			36
2025		17			-			-
Thereafter		23			-			-
Total lease payments		108			2,188			3,284
Less: Interest		(7	)		(84	)		(194	)
Present value of lease liabilities	$	101		$	2,104		$	3,090

Rent expense amounted to approximately $1.3 million, $1.2 million and $1.2 million in 2020, 2019 and 2018, respectively.