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Leases
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
LEASES

Note 5. LEASES

 

The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. The Company leases certain machinery and equipment under finance leases and leases its offices and manufacturing facilities under operating leases. The leases have remaining lease terms of one to six years, some of which include options to extend or terminate the leases.

 

NTW's warehouse lease was terminated in May 2020 by its landlord under the terms of its lease agreement. Additionally, the Company entered into a new lease agreement for warehouse space in Bohemia, NY. The new lease term commenced on April 1, 2020 and expires on May 31, 2025. During the first year of the lease, the monthly rent is $10,964 and increases 3% each year thereafter. The final two months are equal installments of $1,746.

 

Rent expense for the three months ended September 30, 2020 and 2019 was $280,000 and $310,000, respectively. Rent expense for the nine months ended September 30, 2020 and 2019 was $892,000 and $936,000, respectively.

 

   September 30, 
   2020 
Weighted Average Remaining Lease Term - in years   5.77 
Weighted Average discount rate - %   8.88%

 

The aggregate undiscounted cash flows of operating lease payments for leases with remaining terms greater than one year are as follows:

 

   September 30,
2020		 
For the twelve months ended December 31,  (unaudited) 
December 31, 2020 (remaining three months)  $271,000 
December 31, 2021   1,080,000 
December 31, 2022   1,007,000 
December 31, 2023   1,038,000 
December 31, 2024   1,070,000 
Thereafter   1,722,000 
Total future minimum lease payments   6,188,000 
Less: discount   (1,394,000)
Total operating lease maturities   4,794,000 
Less: current portion of operating lease liabilities   (694,000)
Total long term portion of operating lease maturities  $4,100,000