XML 31 R16.htm IDEA: XBRL DOCUMENT

LEASES

12 Months Ended

Dec. 31, 2022

9. 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 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, and a facility in Malvern, Pennsylvania, which was consummated effective January 1, 2022, with a three year term ending in December 2024, that provides warehousing. Also in 2022, the Company extended its operating lease agreement for its corporate office space in Middletown, Connecticut, with the lease term ending in June 2027.

In the U.K., the Company leases a facility in Banbury, England, which serves manufacturing, warehousing, and other operational functions. The lease in Banbury has 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.

On December 31, 2022, the Company has right-of-use assets of $3,205,000, and a lease liability of $3,210,000, of which $447,000 was reported as a current liability. On December 31, 2021, the Company has right-of-use assets of $3,374,000, and a lease liability of $3,373,000, of which $383,000 was reported as a current liability. The respective weighted average remaining lease term and discount rate are approximately 11.02 years and 1.06% as of December 31, 2022.

Rent expense for operating leases was approximately $504,000, $421,000, and $301,000 for the years ended December 31, 2022, 2021 and 2020, respectively.

Future minimum lease payments, inclusive of interest of $178,000, under non-cancelable leases as of December 31, 2022 is as follows:

Year Ending December 31,	Operating Leases
	(in thousands)

2023	$	447
2024		419
2025		258
2026		256
2027		223
Thereafter		1,607
Total Minimum Lease Payments	$	3,210