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Note 9 - Leases

12 Months Ended

Dec. 31, 2021

The Company primarily leases factories, warehouses, call centers, office space and equipment for various terms under long-term, non-cancelable operating lease agreements. A right-of-use asset represents the Company’s right to use an underlying asset for the lease term and a lease liability represents the Company’s obligation to make lease payments arising from the lease. The Company’s leases generally have expected lease terms of one to eight years. In the normal course of business, it is expected that the Company’s leases will be renewed or replaced by leases on other properties. Options to renew lease terms are included in determining the right-of-use asset and lease liability when it is reasonably certain that the Company will exercise that option. Certain of the lease agreements include rental payments adjusted periodically for inflation and generally require the Company to pay real estate taxes, insurance, and repairs. The Company’s lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. As of December 31, 2021, the Company had $5.8 million of operating lease liabilities ($2.1 million in other current liabilities and $3.7 million in long-term operating lease liabilities), which represents the present value of the remaining lease payments, and $8.2 million of operating lease right-of-use assets, which includes prepaid rent of $2.4 million. As of December 31, 2020, the Company had $2.7 million of operating lease liabilities ($1.1 million in other current liabilities and $1.6 million in long-term operating lease liabilities), which represents the present value of the remaining lease payments, and $3.8 million of operating lease right-of-use assets, which includes prepaid rent of $1.5 million. The depreciable-life of right-of-use assets is generally limited by the expected lease term. The Company does not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement.

The components of lease cost were as follows (in thousands):

	Years Ended December 31,
	2021		2020		2019
Operating lease costs	$	2,074	$	2,000	$	1,541
Short-term lease costs		602		541		302
Total lease costs	$	2,676	$	2,541	$	1,843

Cash flow and noncash information related to our operating leases were as follows (in thousands):

	Years Ended December 31,
	2021		2020		2019
Operating cash flows – cash paid for operating lease liabilities	$	1,732	$	1,425	$	1,320
Non-cash – Operating lease right-of-use assets obtained in exchange for new lease liabilities	$	4,945	$	243	$	782

Other supplemental information related to our operating leases was as follows:

	Years Ended December 31,
	2021			2020			2019
Weighted-average remaining lease term (in years)		3.1			2.8			3.6
Weighted average discount rate		4.74	%		5.61	%		5.61	%

Maturities of operating lease liabilities as of December 31, 2021 were as follows (in thousands):

	Operating Leases
2022	$	2,153
2023		1,925
2024		1,033
2025		865
2026		418
Thereafter		-
Total lease payments		6,394
Less imputed interest		577
Present value of lease liabilities	$	5,817