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Leases | 6 Months Ended
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Jun. 30, 2021
Leases [Abstract] |
Leases | Leases The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of June 30, 2021 and December 31, 2020 (in thousands):
| Classification |  | June 30, 2021 |  | December 31, 2020
Assets |  |  |  |  |
Operating lease assets | Right-of-use assets |  | $ | 602 |  | $ | 786
Finance lease assets | Property and equipment, net of accumulated depreciation |  | 95 |  | 6,781
Total lease assets |  |  | $ | 697 |  | $ | 7,567
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current portion of operating lease obligations |  | $ | 271 |  | $ | 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 |  | 393 |  | 490
Finance | Long-term portion of finance lease obligations |  | 71 |  | —
Total lease liabilities |  |  | $ | 752 |  | $ | 1,500
The following table summarizes the components of lease expense for the three and six months ended June 30, 2021 and 2020 (in thousands, unaudited):
Lease Cost |  | Classification |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost |  | Cost of sales |  | $ | 34 |  | $ | 41 |  | $ | 77 |  | $ | 80
Operating lease cost |  | Selling, general and administrative expenses |  | 46 |  | 90 |  | 123 |  | 181
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Depreciation |  | 6 |  | 292 |  | 9 |  | 585
Interest on lease liabilities |  | Interest expense |  | 3 |  | 135 |  | 15 |  | 296
Net lease cost |  |  |  | $ | 89 |  | $ | 558 |  | $ | 224 |  | $ | 1,142
On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $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. The following schedule presents the future minimum lease payments for our operating and finance obligations at June 30, 2021 (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder 2021 | $ | 204 |  | $ | 13 |  | $ | 217
2022 | 212 |  | 25 |  | 237
2023 | 145 |  | 25 |  | 170
2024 | 149 |  | 42 |  | 191
2025 | 25 |  | — |  | 25
Thereafter | — |  | — |  | —
Total lease payments | 735 |  | 105 |  | 840
Less: Interest | (71) |  | (17) |  | (88)
Present value of lease liabilities | $ | 664 |  | $ | 88 |  | $ | 752
Lease term and discount rates for our operating and finance lease obligations are as follows:
Lease Term and Discount Rate |  | June 30, 2021
Weighted-average remaining lease term (years) |  |
Operating leases |  | 2.7
Finance leases |  | 2.6
Weighted-average discount rate |  |
Operating leases |  | 7.2%
Finance leases |  | 10.7%
The following table summarizes the supplemental cash flow information related to leases for the six months ended June 30, 2021 and 2020:
Other information |  | June 30, 2021 |  | June 30, 2020
|  | (In thousands)
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 187 |  | $ | 237
Financing cash flows from finance leases |  | 668 |  | 1,694
Interest paid |  | 30 |  | 235
Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | — |  | $ | 73
Leases | Leases The following table summarizes the supplemental balance sheet information related to lease assets and lease liabilities as of June 30, 2021 and December 31, 2020 (in thousands):
| Classification |  | June 30, 2021 |  | December 31, 2020
Assets |  |  |  |  |
Operating lease assets | Right-of-use assets |  | $ | 602 |  | $ | 786
Finance lease assets | Property and equipment, net of accumulated depreciation |  | 95 |  | 6,781
Total lease assets |  |  | $ | 697 |  | $ | 7,567
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating | Current portion of operating lease obligations |  | $ | 271 |  | $ | 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 |  | 393 |  | 490
Finance | Long-term portion of finance lease obligations |  | 71 |  | —
Total lease liabilities |  |  | $ | 752 |  | $ | 1,500
The following table summarizes the components of lease expense for the three and six months ended June 30, 2021 and 2020 (in thousands, unaudited):
Lease Cost |  | Classification |  | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Operating lease cost |  | Cost of sales |  | $ | 34 |  | $ | 41 |  | $ | 77 |  | $ | 80
Operating lease cost |  | Selling, general and administrative expenses |  | 46 |  | 90 |  | 123 |  | 181
Finance lease cost |  |  |  |  |  |  |  |  |  |
Amortization of leased assets |  | Depreciation |  | 6 |  | 292 |  | 9 |  | 585
Interest on lease liabilities |  | Interest expense |  | 3 |  | 135 |  | 15 |  | 296
Net lease cost |  |  |  | $ | 89 |  | $ | 558 |  | $ | 224 |  | $ | 1,142
On January 25, 2021, the Company entered into three finance lease agreements for vehicles. Under the terms of the lease agreements, the Company has total monthly principal and interest payments of $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. The following schedule presents the future minimum lease payments for our operating and finance obligations at June 30, 2021 (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder 2021 | $ | 204 |  | $ | 13 |  | $ | 217
2022 | 212 |  | 25 |  | 237
2023 | 145 |  | 25 |  | 170
2024 | 149 |  | 42 |  | 191
2025 | 25 |  | — |  | 25
Thereafter | — |  | — |  | —
Total lease payments | 735 |  | 105 |  | 840
Less: Interest | (71) |  | (17) |  | (88)
Present value of lease liabilities | $ | 664 |  | $ | 88 |  | $ | 752
Lease term and discount rates for our operating and finance lease obligations are as follows:
Lease Term and Discount Rate |  | June 30, 2021
Weighted-average remaining lease term (years) |  |
Operating leases |  | 2.7
Finance leases |  | 2.6
Weighted-average discount rate |  |
Operating leases |  | 7.2%
Finance leases |  | 10.7%
The following table summarizes the supplemental cash flow information related to leases for the six months ended June 30, 2021 and 2020:
Other information |  | June 30, 2021 |  | June 30, 2020
|  | (In thousands)
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from operating leases |  | $ | 187 |  | $ | 237
Financing cash flows from finance leases |  | 668 |  | 1,694
Interest paid |  | 30 |  | 235
Noncash activities from right-of-use assets obtained in exchange for lease obligations: |  |  |  |
Operating leases |  | $ | — |  | $ | 73

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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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