Quarterly report pursuant to Section 13 or 15(d)


3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
NOTE 11 – Leases
The Company has entered into warehouse, facility, and various office leases with third parties for periods ranging from one to eleven years. As discussed in Note 3 - Recently Issued and Adopted Accounting Standards, the Company adopted ASC 842 - Leases on January 1, 2022 utilizing the modified retrospective approach. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain leases, (2) lease classification for any expired or existing leases as of the adoption date, and (3) initial direct costs for any existing leases as of the adoption date. The Company has elected not to recognize ROU assets and lease liabilities for leases with terms of 12 months or less.
The Company determines at the inception of a lease whether an arrangement that provides the Company control over the use of an asset is a lease. ROU assets and lease liabilities are initially measured at the lease commencement date based on the present value of the future lease payments over the lease term, discounted using an estimate of the Company’s incremental borrowing rate which approximates the rate to borrow funds on collateralized loans over a similar term of the lease. Renewal options are included in the calculation of ROU assets and lease liabilities when the Company determines that the option is reasonably certain of exercise based on an analysis of the relevant facts and circumstances. When
operating leases contain provisions for maintenance services, which are considered non-lease components for accounting purposes, those non-lease components are excluded from the calculation of the ROU assets and lease liabilities.
Operating lease expense is generally recognized on a straight-line basis over the lease term unless another method better represents the pattern that benefit is expected to be derived from the right to use the underlying asset. For the three months ended March 31, 2022, the Company recognized $0.9 million in total lease costs, which was comprised of $0.3 million in operating lease expense and $0.1 million in capitalized lease costs for ROU assets, and $0.5 million of short-term operating lease expense. For the three months ended March 31, 2021, the Company recognized rent expense of $0.1 million.
The Company also entered into a related-party office lease as a result of its acquisition of interest Gulf Coast Environmental Services, LLC in 2020. During the three months ended March 31, 2022 and 2021, the Company paid approximately $70 thousand and $53 thousand, respectively, under this related-party lease which expires on May 1, 2022.
Supplemental information related to the Company's ROU assets and related operating lease liabilities were as follows:

(in thousands) Three Months Ended March 31, 2022
Operating cash outflows for operating leases $ 666
Weighted average remaining lease term (in years) 9.0
Weighted average discount rate 5.0  %
In 2021, the Company entered into a new corporate office lease with a commitment of approximately $8.3 million that has not commenced as of March 31, 2022 and, therefore, has not been recognized on the Company's Consolidated Balance Sheet. This operating lease is expected to commence in the fourth quarter of 2022 with a lease term of 11 years.
As of March 31, 2022, future lease payments under the Company’s operating leases that have commenced are as follows:
(in thousands)
Remainder of 2022 $ 808 
2023 609 
2024 528 
2025 520 
2026 533
2027 545
Total future lease payments
Less portion representing imputed interest (1,247)
Total operating lease liabilities $ 4,873