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Note 13 - Leases

9 Months Ended

Sep. 30, 2024

13.

Leases

The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2034. The Company’s primary operating lease commitments as of September 30, 2024, related to the Company’s manufacturing facilities in Valdosta, Georgia and Nogales, Arizona, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of September 30, 2024, the Company had operating lease right-of-use assets of $8,939,000 and operating lease liabilities of $8,984,000. As of September 30, 2024, we did not have any finance leases recorded on the Company’s consolidated balance sheet. Operating lease expense was approximately $1,248,000 during the nine months ended September 30, 2024.

The aggregate future minimum lease payments and reconciliation to lease liabilities as of September 30, 2024 were as follows:

	September 30,
	2024
Remaining three months of 2024	$	362,000
2025		1,471,000
2026		1,477,000
2027		1,459,000
2028		1,489,000
2029		1,520,000
Thereafter		4,856,000
Total future minimum lease payments		12,634,000
Less imputed interest		(3,650,000	)
Total lease liabilities	$	8,984,000

As of September 30, 2024, the weighted average remaining lease term of the Company’s operating leases was 10.22 years. During the nine months ended September 30, 2024, the weighted average discount rate with respect to these leases was 7.0%.