XML 24 R15.htm IDEA: XBRL DOCUMENT v3.23.3
LEASES
 9 Months Ended
Sep. 30, 2023
Leases  
LEASES

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 guidance for leases, as defined by FASB ASC Topic 842, Leases, 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, with a three year term ending in December 2024, that provides warehousing. Additionally, the Company has an 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.

 

As of September 30, 2023, the Company recorded right-of-use assets of $2,920,000, and a lease liability of $2,928,000, of which $450,000 is reported as a current liability. On December 31, 2022, the Company recorded 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. The respective weighted average remaining lease term and discount rate are approximately 10.68 years and 1.09% as of September 30, 2023.

 

Rent expense for operating leases was $112,000 and $355,000 for the three and nine months ended September 30, 2023 and $119,000 and $384,000 for the three and nine months ended September 30, 2022.

 

Future minimum lease payments, under non-cancelable leases as of September 30, 2023, are as follows:

 

Twelve Months Ending September 30,  Operating
Leases		 
   (in thousands) 
2024  $478 
2025   330 
2026   282 
2027   260 
2028   206 
Thereafter   1,530 
Total Future Minimum Lease Payments   3,086 
Less: Interest   158 
Lease Liability   2,928 
Less: Current Portion of Lease Liability   450 
Lease Liability – Net of Current Portion  $2,478