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COMMITMENTS AND CONTINGENCIES | 12 Months Ended
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Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract] |
COMMITMENTS AND CONTINGENCIES | 13. 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, 2019 and 2018, assets recorded under finance leases were $1,253 and $864, respectively, and accumulated amortization associated with finance leases was $571 and $343, respectively. The components of the lease expense were as follows:
|  | For the Year Ended |
|  | December 31, |
|  | 2019 |  |  | 2018 |
Operating lease cost |  |  | $ | 677 |  |  | $ | 592 |
Finance lease cost |  |  |  |  |  |  |  |  |
Amortization of right-of-use asset |  |  | $ | 284 |  |  | $ | 187 |
Interest on lease liabilities |  |  |  | 53 |  |  |  | 40 |
Total finance lease cost |  |  | $ | 337 |  |  | $ | 227 |
Other information related to leases was as follows: Supplemental Cash Flows Information
|  | December 31, |
|  | 2019 |  |  | 2018 |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  | $ | 664 |  |  | $ | 598 |
Operating cash flows from finance leases |  |  |  | 53 |  |  |  | 40 |
Financing cash flows from finance leases |  |  |  | 281 |  |  |  | 170 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |  |
Operating leases |  |  |  | 599 |  |  |  | 515 |
Finance leases |  |  |  | 62 |  |  |  | 54 |
Weighted Average Remaining Lease Term
| December 31,
| 2019 |  | 2018
Operating leases | 2 years |  | 3 years
Finance leases | 2 years |  | 2 years
Weighted Average Discount Rate
|  | December 31, |
|  | 2019 |  |  | 2018 |
Operating leases |  |  | 5.50 | % |  |  | 5.50 | %
Finance leases |  |  | 6.90 | % |  |  | 6.50 | %
Future minimum lease payments under non-cancellable leases as of December 31, 2019 were as follows:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
2020 |  |  |  | 677 |  |  |  | 281 |
2021 |  |  |  | 401 |  |  |  | 330 |
2022 |  |  |  | 91 |  |  |  | 140 |
2023 |  |  |  | — |  |  |  | 124 |
Total future minmum lease payments |  |  |  | 1,169 |  |  |  | 875 |
Less imputed interest |  |  |  | (62 | ) |  |  | (93 | )
Total future minmum lease payments |  |  | $ | 1,107 |  |  | $ | 782
Reported as of December 31, 2019:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
Accounts payable and accrued liabilities |  |  | $ | 632 |  |  | $ | 236 |
Other long-term liabilities |  |  |  | 475 |  |  |  | 546 |
Total |  |  | $ | 1,107 |  |  | $ | 782 |
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 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 amount (exceeding $25,000); however, the Company has recognized approximately $1.2 million for expected costs related to this litigation. 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 2020. 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. On October 4, 2019, the dividend that was payable by the Company was enjoined by court order of the Superior Court of California related to the foregoing case. The Company continues to contest the order. As of the date of this filing, this court order remains in place. On October 16, 2019, Myers Power Products, Inc. filed an ex parte application arguing the Company had violated, or intended to violate the modified preliminary injunction and sought order from the court for the Company to post a bond in an amount of $20,000 or more. The court has not taken any action on this request and the Company intends to vigorously defend its rights in the event the order is granted. There are also two appeals pending in the California Court of Appeals for the Second Appellate District, which includes an appeal of an order modifying a previously issued preliminary injunction and an order enjoining us to obtain and post a $12 million bond in connection with the modified preliminary injunction. Due to the uncertainties of litigation, the Company can give no assurance that it will prevail on the appeals. These appeals are currently scheduled to be heard later in calendar year 2021, after the underlying case is likely to be heard and decided. 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. 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.

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