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Note 11 - Leases

6 Months Ended

Jun. 30, 2025

Leases of Lessee and Lessor Disclosure [Text Block]

NOTE 11 LEASES

(a) Lessee leases:

The Company has operating leases for office space that include fixed base rent payments, as well as variable rent payments to reimburse the landlord for operating expenses and taxes. The Company’s variable lease payments do not depend on a published index or rate, and therefore, are expensed as incurred. The Company includes only fixed payments for lease components in the measurement of the right-of-use asset and lease liability. There are no residual value guarantees.

Operating lease costs, variable lease costs and short-term lease costs included in general and administrative expenses for the three and six months ended June 30, 2025 and June 30, 2024 were as follows:

(in thousands)	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Operating lease cost	$	218	$	139	$	411	$	282
Variable lease cost		46		67		102		137
Short-term lease cost		29		24		58		49

The annual maturities of lease liabilities as of June 30, 2025 were as follows:

(in thousands)	Lease Commitments
2025	$	463
2026		845
2027		642
2028		381
2029		277
2030 and thereafter		543
Total undiscounted lease payments		3,151
Imputed interest		325
Total lease liabilities	$	2,826

The weighted-average remaining lease term for our operating leases was 4.99 years as of June 30, 2025. The weighted-average discount rate of our operating leases was 6.24% as of June 30, 2025. Cash paid for amounts included in the measurement of lease liabilities was $0.4 million and $0.3 million for the six months ended June 30, 2025 and June 30, 2024, respectively.

(b) Lessor leases:

The Company enters into contracts with third-parties to lease equipment to its customers. In certain of these contracts, the Company has the option to purchase the equipment back from such third-party at the end of the lease term with the end customer. In these cases, the Company determined that these contracts represent a lease, and the Company is a lessor under these contracts. The sum of the lease payments received by the Company exceed the cost of the equipment. Therefore, these leases are determined to be sales-type leases. The Company receives the full lease payment for the equipment upfront when the equipment is delivered to the customer and installation is complete. Therefore the Company does not record a receivable or interest income related to these leases. The Company recognizes all revenue and costs associated with the sales-type lease within service fee and commission revenue, and cost of services sold, respectively, upon delivery and installation of the equipment to the customer. For the three months ended June 30, 2025 and June 30, 2024, total revenue recognized from sales-type leases was $0.4 million and zero, respectively ($0.7 million and zero for the six months ended June 30, 2025 and June 30, 2024, respectively).