LEASES:

Capital Leases

The Company leases certain equipment used in the manufacturing process. The Company had a total of

$0.9

million in capital lease obligations outstanding as of

December

31,

2016.

The weighted average interest rate on all of the Company’s capital leases was

4.55%.

The future minimum payments under the Company’s capital leases as of

December

31,

2016

are as follows (in thousands):

2017	$	358
2018		257
2019		230
2020		134
2021		18
Total minimum lease payments		997
Amount representing interest		(70	)
Present value of minimum lease payments		927
Current portion of capital lease obligation		325
Capital lease obligation, less current portion	$	602

Interest expense related to a capital lease at the Company’s former Bossier, Louisiana facility of

$0.1

million in

2014

was included in Loss from operations of discontinued business.

Operating Leases

The Company has entered into various equipment and property leases with terms of

ten

years or less. Total rental expense from continuing operations for the years ended

December

31,

2016,

2015

and

2014

was

$3.0

million,

$3.2

million and

$3.2

million, respectively. Certain of the Company’s operating lease agreements include renewals and/or purchase options set to expire at various dates. The future minimum payments for operating leases with initial or remaining terms in excess of

one

year as of

December

31,

2016

are as follows (in thousands):

2017	$	2,427
2018		1,313
2019		897
2020		794
2021		489
Thereafter		1,345
	$	7,265