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LEASES

9 Months Ended

Sep. 30, 2021

7. LEASES

In the U.S., the Company owns its two main operating facilities located in Exton, Pennsylvania. In addition to the owned facilities, the Company also has operations in other locations that are leased, as well as other leased assets. In conjunction with the new guidance for leases, as defined by the FASB with ASU 2016-02, Leases (Topic 842), the Company has described the existing leases, which are all classified as operating leases, pursuant to the below.

In the U.S., the Company leases a facility in Houston, Texas, which currently provides manufacturing, stocking and sales operations, with the lease term running through October 2024. Additionally, the Company leases its corporate office space in Middletown, Connecticut, with the lease term expiring in June 2022.

In the U.K., the Company leases a facility in Banbury, England, which serves manufacturing, warehousing, and other operational functions. The lease in Banbury was effective April 1, 2006 and had a 15-year term which ended in March 2021. A new lease for Banbury was recently consummated, effective April 1, 2021, with a 15-year term ending in March 2036.

In addition to property rentals, the Company also has lease agreements in place for various fleet vehicles and equipment with various lease terms.

At September 30, 2021, the Company has recorded right-of-use assets of $3,464,000, and a lease liability of $3,462,000, of which $404,000 is reported as a current liability. At December 31, 2020, the Company had recorded right-of-use assets of $493,000, and a lease liability of $499,000, of which $247,000 was reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 13.03 years and 1.1% as of September 30, 2021.

Rent expense for the operating leases was approximately $108,000 and $312,000 for the three and nine months ended September 30, 2021 and $76,000 and $225,000 for the three and nine months ended September 30, 2020.

Future minimum lease payments, inclusive of interest, under non-cancelable leases as of September 30, 2021 is as follows:

Twelve Months Ending September 30,	Operating Leases
	(Amounts in thousands)
2022	$	404
2023		311
2024		278
2025		212
2026		207
Thereafter		2,050
Total Minimum Lease Payments	$	3,462