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Note 9 - Leases

12 Months Ended

Dec. 31, 2025

Lessee, Operating Leases and Finance Leases [Text Block]

9. Leases

The Company leases its buildings and manufacturing facilities under operating leases. As of December 31, 2025, the Company has real estate leases in Bedford, Massachusetts, Warsaw, Indiana and Padova, Italy.

In June 2022, the Company finalized a renewal option to extend the current term for its operating headquarters and manufacturing facility in Bedford through 2027. There are also lease renewal options into 2038 that the Company is reasonably certain to exercise.

The Company leases office space in Padova, Italy. The current term of the Padova lease extends to 2032, with a right to terminate at the Company’s option in 2026 without penalty. The Company is not expected to terminate this lease prior to the lease expiration date in 2032. During 2025, the Company determined that it became reasonably certain that the Company would not exercise its option to terminate and accordingly, the right of use asset and lease liability were increased to account for the lease extension to 2032.

The significant assumptions in recognizing the right-of-use asset and lease liability are as follows:

Incremental borrowing rate. The Company derives its incremental borrowing rate from information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate represents a collateralized rate of interest the Company would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s lease agreements do not provide implicit rates. As the Company did not have any external borrowings at either the transition or subsequent renewal dates with comparable terms to its lease agreements, the Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of the lease. The weighted average discount rate at December 31, 2025 was 3.7% for operating leases.

Lease term. The lease term begins at the lease commencement date and is determined on that date based on the non-cancelable term of the lease together with periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, or periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option.

The components of lease expense and other information for continued and discontinued operations are as follows:

	Years Ended December 31
	2025		2024		2023
Operating lease expense	$	2,910	$	3,333	$	3,320
Variable lease expense		248		497		425
Total lease expense	$	3,158	$	3,830	$	3,745

	Years Ended December 31
	2025			2024
Weighted Average Remaining Lease Term (in years)
Operating leases		12.2			13.2

Weighted Average Discount Rate
Operating leases		3.7	%		3.5	%

Other information
Operating cash flows from operating leases	$	2,837		$	3,267

Future commitments due under these lease agreements as of December 31, 2025 are as follows:

Years ended December 31,	Operating Leases

2026	$	2,848
2027		2,772
2028		2,772
2029		2,772
2030		2,772
Thereafter		18,797
Present value adjustment		(6,485	)
Present value of lease payments		26,248
Less current portion included in accrued expenses and other current liabilities		(2,052	)
Total lease liabilities	$	24,196