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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Abstract]

11. COMMITMENTS AND CONTINGENCIES

Leases

The company leases certain offices, facilities and equipment under operating and financing leases. Our leases have remaining terms of 1 year to 7 years some of which contain options to extend up to 10 years. As of December 31, 2018 and 2017, assets recorded under finance leases were $3,339 and $2,900 respectively, and accumulated amortization associated with finance leases was $880 and $418, respectively.

The components of the lease expense were as follows:

	For the Year Ended
	December 31,
	2018		2017
Operating lease cost	$	755	$	675

Finance lease cost
Amortization of right-of-use asset	$	622	$	535
Interest on lease liabilities		157		166
Total finance lease cost	$	779	$	701

Other information related to leases was as follows:

Supplemental Cash Flows Information

	December 31,
	2018		2017
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	768	$	694
Operating cash flows from finance leases		157		166
Financing cash flows from finance leases		414		301
Right-of-use assets obtained in exchange for lease obligations:
Operating leases		664		581
Finance leases		622		535

Weighted Average Remaining Lease Term

	December 31,
	2018	2017
Operating leases	3 years		3 years
Finance leases	6 years		7 years

Weighted Average Discount Rate

	December 31,
	2018			2017
Operating leases		6.00	%	5.50	%
Finance leases		6.37	%	5.90	%

Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:

	Operating			Finance
	Leases			Leases
2019	$	779		$	630
2020		755			532
2021		410			562
2022		91			363
2023		—			309
Thereafter		—			853
Total future minmum lease payments		2,035			3,249
Less imputed interest		(164	)		(570	)
Total future minmum lease payments	$	1,871		$	2,679

Reported as of December 31, 2018:

	Operating		Finance
	Leases		Leases
Accounts payable and accrued liabilities	$	687	$	473
Other long-term liabilities		1,187		2,205
Total	$	1,874	$	2,678

Litigation and Claims

The Company is from time to time party to various lawsuits, claims and other proceedings that arise in the ordinary course of our business.

On January 11, 2016, Myers Power Products, Inc., a specialty electrical products manufacturer, filed suit with the Superior Court of the State of California, County of Los Angeles, against us, PCEP and two PCEP’s employees who are former employees of Myers Power Products, Inc., Geo Murickan, the president of PCEP (“Murickan”), and Brett DeChellis (“DeChellis”), alleging, among other things, that Murickan wrongly used and retained confidential business information of Myers Power Products, Inc. for the benefit of us and PCEP, in breach of their confidentiality agreement and/or employment agreement entered into with Myers Power Products, Inc., and that we and PCEP knowingly received and used such confidential business information. Myers Power Products, Inc. is seeking injunctive relief enjoining us, PCEP and our employees from using its confidential business information and compensatory damages of an unspecified unlimited (exceeding $25,000) amount. On March 18, 2016, we filed an answer to the complaint, denying generally each and every allegation and relief sought by Myers Power Products, Inc. and seeking dismissal based on, among other things, failure to state facts sufficient to constitute a cause of action. We intend to contest the matter vigorously. Due to the uncertainties of litigation, however, we can give no assurance that we, PCEP and our employees will prevail on any claims made against us, PCEP and our employees in any such lawsuit. As of the filing of this report, this action is scheduled for trial in the second quarter of 2019. Also, we can give no assurance that any other lawsuits or claims brought in the future will not have an adverse effect on our financial condition, liquidity or operating results. We cannot execute the sale of PCEP until the lawsuit has been resolved.

With respect to all such lawsuits, claims and proceedings, the Company records a reserve when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. The Company does not believe that the resolution of any currently pending lawsuits, claims and proceedings, either individually or in the aggregate, will have a material adverse effect on its financial position, results of operations or liquidity. However, the outcomes of any currently pending lawsuits, claims and proceedings cannot be predicted, and therefore, there can be no assurance that this will be the case.