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Leases | 3 Months Ended
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Mar. 31, 2021
Leases [Abstract] |
Leases | Leases The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of March 31, 2021 and December 31, 2020 (in thousands):
| Classification |  | March 31, 2021 |  | December 31, 2020
Assets |  |  |  |  |
Operating lease assets | Right-of-use assets |  | $ | 678 |  | $ | 786
Finance lease assets | Property and equipment, net of accumulated depreciation |  | 101 |  | 6,781
Total lease assets |  |  | $ | 779 |  | $ | 7,567
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current portion of operating lease obligations |  | $ | 306 |  | $ | 362
Finance | Current portion of finance lease obligation |  | 17 |  | —
Finance | Current portion of finance lease obligation - related parties |  | — |  | 648
Noncurrent |  |  |  |  |
Operating | Long-term portion of operating lease obligation |  | 436 |  | 490
Finance | Finance lease obligations, net of current portion |  | 75 |  | —
Total lease liabilities |  |  | $ | 834 |  | $ | 1,500
The following table summarizes the components of lease expense for the three months ended March 31, 2021 and 2020 (in thousands, unaudited):
Lease Cost |  | Classification |  |  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Operating lease cost |  | Cost of sales |  |  |  |  |  | $ | 43 |  | $ | 39
Operating lease cost |  | Selling, general and administrative expenses |  |  |  |  |  | 77 |  | 91
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Depreciation |  |  |  |  |  | 3 |  | 293
Interest on lease liabilities |  | Interest expense |  |  |  |  |  | 12 |  | 161
Net lease cost |  |  |  |  |  |  |  | $ | 135 |  | $ | 584
On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company's total monthly principal and interest payments are $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur. In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. The assets are now owned outright. These assets are included in the Company's property, plant and equipment, net on the consolidated balance sheets and the purchase had no effect on the net book value of these assets. During 2018, Stabilis LLC entered into lease agreements with a subsidiary of The Modern Group to finance vehicles and machinery and equipment totaling approximately $1.5 million. During 2020, the Company exercised its purchase options under the terms of the lease agreements, which included remaining outstanding lease obligations of $413 thousand. The assets are now owned outright. These assets are included in the Company's property, plant and equipment, net on the consolidated balance sheets and the purchase had no effect on the net book value of these assets. The following schedule presents the future minimum lease payments for our operating and finance obligations at March 31, 2021 (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder 2021 | $ | 295 |  | $ | 19 |  | $ | 314
2022 | 211 |  | 25 |  | 236
2023 | 145 |  | 25 |  | 170
2024 | 149 |  | 43 |  | 192
2025 | 25 |  | — |  | 25
Thereafter | — |  | — |  | —
Total lease payments | 825 |  | 112 |  | 937
Less: Interest | (83) |  | (20) |  | (103)
Present value of lease liabilities | $ | 742 |  | $ | 92 |  | $ | 834
Lease term and discount rates for our operating and finance lease obligations are as follows:
Lease Term and Discount Rate |  | March 31, 2021
Weighted-average remaining lease term (years) |  |
Operating leases |  | 2.9
Finance leases |  | 2.8
Weighted-average discount rate |  |
Operating leases |  | 7.3%
Finance leases |  | 10.7%
The following table summarizes the supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020:
Other information |  | March 31, 2021 |  | March 31, 2020
|  | (In thousands)
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 123 |  | $ | 109
Financing cash flows from finance leases |  | 164 |  | 768
Interest paid |  | 3 |  | 131
Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | — |  | $ | —
Leases | Leases The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of March 31, 2021 and December 31, 2020 (in thousands):
| Classification |  | March 31, 2021 |  | December 31, 2020
Assets |  |  |  |  |
Operating lease assets | Right-of-use assets |  | $ | 678 |  | $ | 786
Finance lease assets | Property and equipment, net of accumulated depreciation |  | 101 |  | 6,781
Total lease assets |  |  | $ | 779 |  | $ | 7,567
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current portion of operating lease obligations |  | $ | 306 |  | $ | 362
Finance | Current portion of finance lease obligation |  | 17 |  | —
Finance | Current portion of finance lease obligation - related parties |  | — |  | 648
Noncurrent |  |  |  |  |
Operating | Long-term portion of operating lease obligation |  | 436 |  | 490
Finance | Finance lease obligations, net of current portion |  | 75 |  | —
Total lease liabilities |  |  | $ | 834 |  | $ | 1,500
The following table summarizes the components of lease expense for the three months ended March 31, 2021 and 2020 (in thousands, unaudited):
Lease Cost |  | Classification |  |  |  | Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Operating lease cost |  | Cost of sales |  |  |  |  |  | $ | 43 |  | $ | 39
Operating lease cost |  | Selling, general and administrative expenses |  |  |  |  |  | 77 |  | 91
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Depreciation |  |  |  |  |  | 3 |  | 293
Interest on lease liabilities |  | Interest expense |  |  |  |  |  | 12 |  | 161
Net lease cost |  |  |  |  |  |  |  | $ | 135 |  | $ | 584
On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company's total monthly principal and interest payments are $2 thousand for a 36-month period at an annual rate of 10.7%. The leases include purchase options, which are reasonably certain to occur. In December 2019, the Company refinanced its lease agreement with a subsidiary of The Modern Group, Ltd. (“The Modern Group”) for equipment purchases totaling approximately $3.2 million. Under the terms of the lease agreement, the Company exercised its purchase option and the remaining outstanding lease obligation of approximately $648 thousand became due on January 25, 2021. The assets are now owned outright. These assets are included in the Company's property, plant and equipment, net on the consolidated balance sheets and the purchase had no effect on the net book value of these assets. During 2018, Stabilis LLC entered into lease agreements with a subsidiary of The Modern Group to finance vehicles and machinery and equipment totaling approximately $1.5 million. During 2020, the Company exercised its purchase options under the terms of the lease agreements, which included remaining outstanding lease obligations of $413 thousand. The assets are now owned outright. These assets are included in the Company's property, plant and equipment, net on the consolidated balance sheets and the purchase had no effect on the net book value of these assets. The following schedule presents the future minimum lease payments for our operating and finance obligations at March 31, 2021 (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder 2021 | $ | 295 |  | $ | 19 |  | $ | 314
2022 | 211 |  | 25 |  | 236
2023 | 145 |  | 25 |  | 170
2024 | 149 |  | 43 |  | 192
2025 | 25 |  | — |  | 25
Thereafter | — |  | — |  | —
Total lease payments | 825 |  | 112 |  | 937
Less: Interest | (83) |  | (20) |  | (103)
Present value of lease liabilities | $ | 742 |  | $ | 92 |  | $ | 834
Lease term and discount rates for our operating and finance lease obligations are as follows:
Lease Term and Discount Rate |  | March 31, 2021
Weighted-average remaining lease term (years) |  |
Operating leases |  | 2.9
Finance leases |  | 2.8
Weighted-average discount rate |  |
Operating leases |  | 7.3%
Finance leases |  | 10.7%
The following table summarizes the supplemental cash flow information related to leases for the three months ended March 31, 2021 and 2020:
Other information |  | March 31, 2021 |  | March 31, 2020
|  | (In thousands)
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 123 |  | $ | 109
Financing cash flows from finance leases |  | 164 |  | 768
Interest paid |  | 3 |  | 131
Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | — |  | $ | —

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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