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Note 8 - Leases

9 Months Ended

Sep. 30, 2022

Lessee Operating and Finance Leases [Text Block]

NOTE 8 — LEASES

The Company leases certain facilities and equipment. The leases are accounted for under Accounting Standard Update 2016-02, Leases (“Topic 842”), and the Company elected to apply each available practical expedient. The discount rates used for the leases are based on an interest rate yield curve developed for the leases in the Company’s lease portfolio.

The Company has elected to apply the short-term lease exception to all leases of one year or less. During the nine months ended September 30, 2022 and 2021, the Company had additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations of $187 and $907, respectively. Additionally, during the nine months ended September 30, 2022 and 2021, the Company had additional finance leases that resulted in property, plant, and equipment obtained in exchange for lease obligations of $1,773 and $2,444, respectively.

Some of the Company’s facility leases include options to renew. The exercise of the renewal options is typically at the Company’s discretion. The Company regularly evaluates the renewal options and includes them in the lease term when the Company is reasonably certain to exercise them.

Quantitative information regarding the Company’s leases is as follows:

	*Three Months Ended September 30,*						*Nine Months Ended September 30,*
	*2022*			*2021*			*2022*			*2021*
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	293		$	268		$	869		$	709
Interest on finance lease liabilities		82			92			259			265
Total finance lease costs		375			360			1,128			974
Operating lease cost components:
Operating lease cost		716			741			2,119			2,260
Short-term lease cost		187			166			483			540
Variable lease cost (1)		218			220			669			647
Sublease income		(64	)		(47	)		(143	)		(140	)
Total operating lease costs		1,057			1,080			3,128			3,307

Total lease cost	$	1,432		$	1,440		$	4,256		$	4,281

Supplemental cash flow information related to our operating leases is as follows for the nine months ended September 30, 2022 and 2021:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases							$	2,609		$	2,722

Weighted-average remaining lease term-finance leases at end of period (in years)								2.5			2.0
Weighted-average remaining lease term-operating leases at end of period (in years)								8.3			9.1
Weighted-average discount rate-finance leases at end of period								6.0	%		6.4	%
Weighted-average discount rate-operating leases at end of period								8.7	%		8.6	%

(1)

Variable lease costs consist primarily of taxes, insurance, utilities, and common area or other maintenance costs for the Company’s leased facilities and equipment.

As of September 30, 2022, future minimum lease payments under finance leases and operating leases were as follows:

	*Finance*			*Operating*
	*Leases*			*Leases*			*Total*
2022	$	728		$	887		$	1,615
2023		1,924			3,453			5,377
2024		1,041			2,998			4,039
2025		635			3,064			3,699
2026		422			3,059			3,481
2027 and thereafter		694			14,046			14,740
Total lease payments		5,444			27,507			32,951
Less—portion representing interest		(596	)		(8,456	)		(9,052	)
Present value of lease obligations		4,848			19,051			23,899
Less—current portion of lease obligations		(1,967	)		(1,871	)		(3,838	)
Long-term portion of lease obligations	$	2,881		$	17,180		$	20,061