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Note 6 - Leases

12 Months Ended

Dec. 31, 2024

Operating and Finance Leases [Text Block]

6. Leases

The Company is a party to operating leases for the Company's corporate office in Cupertino, modular offices, and laboratory facilities. We have also entered into several finance leases for mobile equipment and for the Riverbank Industrial Complex. These finance leases have a purchase option at the end of the term that we are reasonably certain we will exercise, so the leases are classified as finance leases. All of our leases have remaining term of one year to 13 years. We made an accounting policy election to keep leases with an initial term of 12 months or less off the balance sheet. We will recognize those lease payments in the Consolidated Statements of Operations as we incur the expenses.

The Company evaluates leases in accordance with ASC 842 – Lease Accounting. When discount rates implicit in leases cannot be readily determined, we use the applicable incremental borrowing rate at lease commencement to perform lease classification tests on lease components and to measure lease liabilities and right of use (ROU) assets. The incremental borrowing rate used by the Company is based on weighted average baseline rates commensurate with the Company’s secured borrowing rate, over a similar term. At each reporting period when there is a new lease initiated, the rates established for that quarter are used.

The components of lease expense and sublease income is as follows:

	*Twelve Months Ended December 31,*
	*2024*		*2023*
Operating lease cost
Operating lease expense	$	764	$	722
Short term lease expense		95		223
Variable lease expense		90		93
Total operating lease cost	$	949	$	1,038

Finance lease cost
Amortization of right-of-use assets	$	120	$	121
Interest on lease liabilities		345		340
Total finance lease cost	$	465	$	461

Cash paid for amounts included in the measurement of lease liabilities:

	*Twelve Months Ended December 31,*
	*2024*		*2023*
Operating cash flows used in operating leases	$	791	$	668
Operating cash flows used in finance leases		345		340
Financing cash flows used in finance leases		179		428

Supplemental non-cash flow information related to the operating ROU asset and lease liabilities for the year ended December 31, 2024 and 2023:

	*Twelve Months Ended December 31,*
	*2024*			*2023*
Operating leases
Accretion of the lease liability	$	327		$	249
Amortization of right-of-use assets		437			293

Weighted Average Remaining Lease Term
Operating leases (in years)		8.0			4.2
Finance leases (in years)		12.2			13.0

Weighted Average Discount Rate
Operating leases		13.7	%		14.1	%
Finance leases		13.3	%		13.2	%

Supplemental balance sheet information related to leases was as follows:

	*As of*
	*December 31, 2024*			*December 31, 2023*
Operating leases
Operating lease right-of-use assets	$	2,237		$	2,056

Current portion of operating lease liability		534			406
Long term operating lease liability		1,809			1,783
Total operating lease liabilities		2,343			2,189

Finance leases
Property and equipment, at cost	$	2,889		$	2,889
Accumulated depreciation		(349	)		(228	)
Property and equipment, net		2,540			2,661

Other current liability		244			30
Other long term liabilities		2,639			2,687
Total finance lease liabilities		2,883			2,717

Maturities of lease liabilities were as follows:

Year Ended December 31,	*Operating leases*			*Finance leases*

2025	$	814		$	168
2026		709			145
2027		708			145
2028		335			145
2029		63			145
There after		1,203			9,960
Total lease payments		3,832			10,708
Less imputed interest		(1,489	)		(7,825	)
Total lease liability	$	2,343		$	2,883

The Company acts as sublessor in certain leasing arrangements, primarily related to land and buildings. Fixed sublease payments received are recognized on a straight-line basis over the sublease term. Sublease income and head lease expense for these transactions are recognized on net basis on the consolidated financial statements. Sublease income is recorded in the other operating income section of the Consolidated Statements of Operations and Comprehensive Loss.

The components of lease income for the years ended December 31, 2024 and 2023, were as follows:

		*December 31, 2024*				*December 31, 2023*
Lease income		$	2,196			$	2,075

Future lease commitments to be received by the Company as of December 31, 2024, are as follows:

Year ended December 31,
2025	$	1,477
2026		1,476
2027		1,366
2028		1,280
2029		1,259
There after		158
Total future lease commitments	$	7,016