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Note 9 - Leases

6 Months Ended

Jun. 30, 2023

Lessee Operating and Finance Leases [Text Block]

NOTE 9 — 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 six months ended June 30, 2023 and 2022, the Company did not have additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations. During the six months ended June 30, 2023 and 2022, the Company had additional finance leases that resulted in property, plant, and equipment obtained in exchange for lease obligations of $0 and $1,773, 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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	369		$	288		$	739		$	576
Interest on finance lease liabilities		86			96			184			176
Total finance lease costs		455			384			923			752
Operating lease cost components:
Operating lease cost		689			705			1,393			1,403
Short-term lease cost		78			144			167			296
Variable lease cost (1)		178			226			523			452
Sublease income		(49	)		(31	)		(97	)		(79	)
Total operating lease costs		896			1,044			1,986			2,072

Total lease cost	$	1,351		$	1,428		$	2,909		$	2,824

Supplemental cash flow information related to our operating leases is as follows for the six months ended June 30, 2023 and 2022:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases							$	1,727		$	1,736

Weighted-average remaining lease term-finance leases at end of period (in years)								3.1			2.7
Weighted-average remaining lease term-operating leases at end of period (in years)								7.7			8.5
Weighted-average discount rate-finance leases at end of period								5.1	%		6.0	%
Weighted-average discount rate-operating leases at end of period								8.8	%		8.7	%

(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 June 30, 2023, future minimum lease payments under finance leases and operating leases were as follows:

	*Finance*			*Operating*
	*Leases*			*Leases*			*Total*
2023	$	1,066		$	1,725		$	2,791
2024		1,392			2,998			4,390
2025		986			3,064			4,050
2026		774			3,059			3,833
2027		671			3,098			3,769
2028 and thereafter		1,023			10,951			11,974
Total lease payments		5,912			24,895			30,807
Less—portion representing interest		(791	)		(7,241	)		(8,032	)
Present value of lease obligations		5,121			17,654			22,775
Less—current portion of lease obligations		(1,590	)		(1,737	)		(3,327	)
Long-term portion of lease obligations	$	3,531		$	15,917		$	19,448