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Leases
 3 Months Ended
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, 2021December 31, 2020
Assets
Operating lease assets
Right-of-use assets$678$786
Finance lease assets
Property and equipment, net of accumulated depreciation1016,781
Total lease assets
$779$7,567
Liabilities
Current
Operating
Current portion of operating lease obligations $306$362
Finance
Current portion of finance lease obligation17—
Finance
Current portion of finance lease obligation - related parties—648
Noncurrent
Operating
Long-term portion of operating lease obligation436490
Finance
Finance lease obligations, net of current portion75—
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,
20212020
Operating lease cost
Cost of sales$43$39
Operating lease costSelling, general and administrative expenses7791
Finance lease cost
Amortization of leased assetsDepreciation3293
Interest on lease liabilitiesInterest expense12161
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
202221125236
202314525170
202414943192
202525—25
Thereafter
———
Total lease payments
825112937
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, 2021March 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
164768
Interest paid
3131
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, 2021December 31, 2020
Assets
Operating lease assets
Right-of-use assets$678$786
Finance lease assets
Property and equipment, net of accumulated depreciation1016,781
Total lease assets
$779$7,567
Liabilities
Current
Operating
Current portion of operating lease obligations $306$362
Finance
Current portion of finance lease obligation17—
Finance
Current portion of finance lease obligation - related parties—648
Noncurrent
Operating
Long-term portion of operating lease obligation436490
Finance
Finance lease obligations, net of current portion75—
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,
20212020
Operating lease cost
Cost of sales$43$39
Operating lease costSelling, general and administrative expenses7791
Finance lease cost
Amortization of leased assetsDepreciation3293
Interest on lease liabilitiesInterest expense12161
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
202221125236
202314525170
202414943192
202525—25
Thereafter
———
Total lease payments
825112937
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, 2021March 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
164768
Interest paid
3131
Noncash activities from right-of-use assets obtained in exchange for lease obligations:
Operating leases
$—$—