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LEASES

12 Months Ended

Dec. 31, 2021

8. 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.

In the December 31, 2021 consolidated balance sheet, the Company has recorded right-of-use assets of $3,374,000, and a lease liability of $3,373,000, of which $383,000 is reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 12.95 years and 1.07%.

Rent expense for operating leases was approximately $421,000, $301,000, and $298,000 for the years ended December 31, 2021, 2020 and 2019, respectively.

Future minimum lease payments, inclusive of interest, under non-cancelable leases as of December 31, 2021 is as follows:

Year Ending December 31,	Operating Leases
	(Amounts in thousands)

2022	$	383
2023		302
2024		263
2025		209
2026		209
Thereafter		2,007

Total Minimum Lease Payments	$	3,373