10. Financing and Operating Leases

CPI adopted ASC 842 effective January 1, 2019. As a result of the adoption of ASC 842, the Company recorded $8,025 of operating ROU assets, and corresponding operating lease liabilities of $8,813 on January 1, 2019, relating to existing real estate operating leases.

The components of operating and finance lease costs were as follows:


		Year Ended	Year Ended
		December 31, 2020	December 31, 2019

Operating lease costs	$	2,649	2,625
Variable lease costs		667	719
Short-term operating lease costs		75	-
Total expense from operating leases	$	3,391	3,344

Finance lease cost:
Right-of-use amortization expense	$	1,342	886
Interest on lease liabilities		540	290
Total financing lease costs	$	1,882	1,176

The following table reflects balances for operating and financing leases:


	December 31, 2020		December 31, 2019
Operating leases
Operating lease right-of-use assets, net of amortization	$	7,183	$	6,312

Operating lease liability (current)	$	2,267	$	2,283
Long-term operating liability		5,491		5,067
Total operating lease liabilities	$	7,758	$	7,350

Financing leases
Property, equipment and leasehold improvements	$	9,974	$	8,256
Accumulated depreciation		(2,422)		(1,094)
Total financing leases in property, equipment and leasehold improvements, net	$	7,552	$	7,162

Financing lease liability (current)	$	2,140	$	2,211
Long-term financing liability		3,052		3,886
Total financing lease liabilities	$	5,192	$	6,097

Finance and operating lease ROU assets are recorded in “Plant, equipment, leasehold improvements, and

operating lease right-of-use assets, net”. Financing and operating lease liabilities are recorded in “Accrued expenses” and “Other long-term liabilities.”

Components of lease expense were as follows:


			December 31, 2020
Weighted Average Remaining Lease Term
Operating Leases			4.93
Financing Leases			2.52

Weighted Average Discount Rate
Operating Leases			9.29%
Financing Leases			8.71%

Future cash payment with respect to lease obligations as of December 31, 2020 were as follows:


		Operating		Financing
		Lease		Leases
Year Ending
2021	$	2,894	$	2,494
2022		1,782		2,007
2023		1,467		1,069
2024		1,250		261
2025		670		2
2026		1,792		—
Total lease payments		9,855		5,833
Less imputed interest		(2,097)		(641)
Total	$	7,758	$	5,192

Cash paid on operating lease liabilities was $2,347 and $1,973 during the years ended December 31, 2020 and December 31, 2019, respectively.