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Note 15 - Leases

12 Months Ended

Dec. 31, 2024

Lessee, Operating and Finance Leases [Text Block]

(15)

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 lease term assumed in the determination of the ROU assets and lease liabilities includes options to extend or terminate the lease when it is reasonably certain that the Company 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):

	December 31,
	2024		2023
Operating lease ROU assets	$	16,056	$	13,437
Finance lease ROU assets		92		151
Total ROU assets	$	16,148	$	13,588

Operating lease liabilities - current	$	4,165	$	3,162
Finance lease liabilities - current		61		60
Total lease liabilities - current	$	4,226	$	3,222

Operating lease liabilities - long-term	$	12,398	$	10,719
Finance lease liabilities - long-term		34		96
Total lease liabilities - long-term	$	12,432	$	10,815

	Year Ended
	December 31,
	($ in thousands)
	2024			2023
Lease Cost:
Finance lease cost:
Amortization of right of use assets	$	86		$	60
Interest on lease liabilities		5			4
Operating lease cost		3,851			3,132
Variable lease cost		329			324
Short-term lease cost		190			68
Total lease cost	$	4,461		$	3,588

Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	3,784		$	2,979
Financing cash flows from finance leases		73			63

ROU assets obtained in exchange for lease liabilities	$	4,900		$	2,492

Weighted-average remaining lease term (years):
Finance		1.54			2.54
Operating		4.27			4.42
Weighted-average discount rate:
Finance		2.12	%		2.11	%
Operating		4.97	%		3.42	%

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

	December 31, 2024
	Operating (a)			Finance
2025	$	4,207		$	63
2026		3,829			28
2027		3,422			6
2028		2,327			-
2029		1,537			-
Thereafter		4,017			-
Total lease payments		19,339			97
Less: Interest		(2,776	)		(2	)
Present value of lease liabilities	$	16,563		$	95

(a)

Future operating lease payments have not been reduced by minimum sublease rentals of approximately $1.4 million due in the future under non-cancelable subleases.

Rent expense amounted to approximately $3.7 million, $2.9 million, and $2.6 million in 2024, 2023, and 2022, respectively.