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Note 9 - Leases

9 Months Ended

Sep. 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 nine months ended September 30, 2023 and 2022, the Company had additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations of $65 and $187, respectively. During the nine months ended September 30, 2023 and 2022, the Company had additional finance leases that resulted in property, plant, and equipment obtained in exchange for lease obligations of $780 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 September 30,*						*Nine Months Ended September 30,*
	*2023*			*2022*			*2023*			*2022*
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	229		$	293		$	968		$	869
Interest on finance lease liabilities		108			82			292			259
Total finance lease costs		337			375			1,260			1,128
Operating lease cost components:
Operating lease cost		698			716			2,091			2,119
Short-term lease cost		122			187			289			483
Variable lease cost (1)		283			218			806			669
Sublease income		(49	)		(64	)		(146	)		(143	)
Total operating lease costs		1,054			1,057			3,040			3,128

Total lease cost	$	1,391		$	1,432		$	4,300		$	4,256

Supplemental cash flow information related to our operating leases is as follows for the nine months ended September 30, 2023 and 2022:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases							$	2,592		$	2,609

Weighted-average remaining lease term-finance leases at end of period (in years)								3.4			2.5
Weighted-average remaining lease term-operating leases at end of period (in years)								7.5			8.3
Weighted-average discount rate-finance leases at end of period								6.1	%		6.0	%
Weighted-average discount rate-operating leases at end of period								8.9	%		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 September 30, 2023, future minimum lease payments under finance leases and operating leases were as follows:

	*Finance*			*Operating*
	*Leases*			*Leases*			*Total*
2023	$	615		$	868		$	1,483
2024		1,600			3,014			4,614
2025		1,193			3,080			4,273
2026		936			3,075			4,011
2027		671			3,114			3,785
2028 and thereafter		1,014			10,955			11,969
Total lease payments		6,029			24,106			30,135
Less—portion representing interest		(789	)		(6,863	)		(7,652	)
Present value of lease obligations		5,240			17,243			22,483
Less—current portion of lease obligations		(1,612	)		(1,660	)		(3,272	)
Long-term portion of lease obligations	$	3,628		$	15,583		$	19,211