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Note 9 - Leases

3 Months Ended

Mar. 31, 2024

Lessee, Operating and Finance Leases [Text Block]

(9)

Leases

The Company has operating and finance leases for offices, manufacturing plants, vehicles and certain office and manufacturing equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company accounts for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the right of use (“ROU”) assets or lease liabilities. These are expensed as incurred and recorded as variable lease expense. The Company determines if an arrangement is a lease at the inception of a contract. Operating and finance lease ROU assets and operating and finance lease liabilities are stated separately in the condensed consolidated balance sheet.

ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments pursuant to the lease. ROU assets and lease liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's assumed lease term includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option. ROU assets are also adjusted for any deferred or accrued rent. As the Company's leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

ROU assets and lease liabilities consist of the following (in thousands):

	March 31,		December 31,
	2024		2023
Operating lease ROU assets	$	12,823	$	13,437
Finance lease ROU assets		172		151
Total ROU assets	$	12,995	$	13,588

Operating lease liabilities - current	$	3,250	$	3,162
Finance lease liabilities - current		119		60
Total lease liabilities - current	$	3,369	$	3,222

Operating lease liabilities - long-term	$	10,037	$	10,719
Finance lease liabilities - long-term		81		96
Total lease liabilities - long-term	$	10,118	$	10,815

The components of lease costs for the three-month periods ended March 31, 2024 and 2023 consist of the following (in thousands):

	Three Months Ended March 31,
	2024		2023
Lease Cost:
Finance lease cost:
Amortization of right of use assets	$	24	$	15
Interest on lease liabilities		2		1
Operating lease cost		855		711
Variable lease cost		80		83
Short-term lease cost		35		7
Total lease cost	$	996	$	817

Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	834		$	683
Financing cash flows from finance leases		20			16
Weighted-average remaining lease term (years):
Finance		1.84			3.29
Operating		4.00			5.06
Weighted-average discount rate:
Finance		2.27	%		2.10	%
Operating		3.73	%		3.42	%

The aggregate future lease payments for leases as of March 31, 2024 are as follows (in thousands):

	Operating			Finance
Remainder of 2024	$	2,529		$	123
2025		3,030			63
2026		2,667			17
2027		2,303			2
2028		1,190			-
Thereafter		2,828			-
Total lease payments		14,547			205
Less: Interest		(1,259	)		(6	)
Present value of lease liabilities	$	13,288		$	199