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Note 5 - Leases | 6 Months Ended
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Jun. 30, 2021
Notes to Financial Statements |
Lessee, Operating Leases [Text Block] | 5. LEASES The Company leases 7,300 square feet of office space in Hong Kong and 4,900 square feet of office space in Rolling Hills Estates, California for its corporate staff. In June 2020, the Company extended the Rolling Hills Estates office lease for an additional five years with a term now expiring in September 2030. Effective July 1, 2020, the Company modified the terms of its largest Hong Kong office lease resulting in a lease extension through June 2023. To help further develop the market for its products in North America, the Company leases 1,600 square feet of retail space in each of Rowland Heights, California and Richmond, British Columbia and 2,000 square feet of retail space in Metuchen, New Jersey. The Rowland Heights, Richmond and Metuchen locations have terms expiring in November 2025, February 2024, and November 2022, respectively. The Company leases eight branch offices throughout China, and additional office space in Peru, Japan, Taiwan, South Korea, Singapore, Malaysia, Vietnam, Indonesia, Thailand, India, and the Cayman Islands. The Company also leases a factory in Zhongshan, China. The Company contracts with third parties for fulfillment and distribution operations in all of its international markets. None of the Company’s third party logistics contracts contain a lease as the Company does not have the right to access the warehouses or move its inventories at will. The components of lease cost for the three and six months ended June 30, 2021 and 2020 were as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Operating leases |  | $ | 340 |  |  | $ | 446 |  |  | $ | 658 |  |  | $ | 915 |
Short-term leases |  |  | 41 |  |  |  | 82 |  |  |  | 89 |  |  |  | 165 |
Total lease cost |  | $ | 381 |  |  | $ | 528 |  |  | $ | 747 |  |  | $ | 1,080 |
Cash paid for amounts included in the measurement of operating leases liabilities was $344,000 and $421,000 for the three months ended June 30, 2021 and 2020, respectively, and $702,000 and $900,000 for the six months ended June 30, 2021 and 2020, respectively. The weighted-average remaining lease term and discount rate related to operating leases as of June 30, 2021 were as follows:
Weighted-average remaining lease term (in years) |  |  | 5.2 |
Weighted-average discount rate |  |  | 3.3 | %
As most of our leases do not provide an implicit rate, the Company used its incremental borrowing rate, or the rate of each of its subsidiaries if available, based on the information available at the lease commencement date to determine the present value of lease payments. The annual scheduled lease payments of our operating lease liabilities as of June 30, 2021 were as follows (in thousands):
Remainder of 2021 |  | $ | 608 |
2022 |  |  | 1,245 |
2023 |  |  | 678 |
2024 |  |  | 273 |
2025 |  |  | 261 |
Thereafter |  |  | 990 |
Total lease payments |  | $ | 4,055 |
Less: imputed interest |  |  | (348 | )
Present value of lease liabilities |  | $ | 3,707 |
For all asset classes, the Company elected not to recognize assets or liabilities at the acquisition date for leases that, at the acquisition date, have a remaining lease term of 12 months or less. Additionally, for all asset classes, the Company choose not to separate nonlease components from lease components and instead account for the combined lease and nonlease components associated with that lease component as a single lease component.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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