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Note 9 - Leases

6 Months Ended

Jun. 30, 2024

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, 2024 and 2023, the Company had an additional operating lease that resulted in right-of-use assets obtained in exchange for lease obligations in the amount of $29 and $0, respectively. During the six months ended June 30, 2024 and 2023, the Company had additional finance leases associated with property, plant, and equipment of $880 and $0, 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,
	2024			2023			2024			2023
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	370		$	369		$	728		$	739
Interest on finance lease liabilities		121			86			228			184
Total finance lease costs		491			455			956			923
Operating lease cost components:
Operating lease cost		703			689			1,345			1,393
Short-term lease cost		54			78			100			167
Variable lease cost (1)		384			178			753			523
Sublease income		(49	)		(49	)		(99	)		(97	)
Total operating lease costs		1,092			896			2,099			1,986

Total lease cost	$	1,583		$	1,351		$	3,055		$	2,909

Supplemental cash flow information related to our operating leases is as follows for the six months ended June 30, 2024 and 2023:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases							$	1,679		$	1,727

Weighted-average remaining lease term-finance leases at end of period (in years)								2.8			3.1
Weighted-average remaining lease term-operating leases at end of period (in years)								6.6			7.7
Weighted-average discount rate-finance leases at end of period								5.4	%		5.1	%
Weighted-average discount rate-operating leases at end of period								8.9	%		8.8	%

(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, 2024, future minimum lease payments under finance leases and operating leases were as follows:

	*Finance*			*Operating*
	*Leases*			*Leases*			*Total*
2024	$	1,637		$	1,683		$	3,320
2025		1,477			3,454			4,931
2026		1,220			3,449			4,669
2027		929			3,151			4,080
2028		6			3,160			3,166
2029 and thereafter		1,014			7,802			8,816
Total lease payments		6,283			22,699			28,982
Less—portion representing interest		(704	)		(5,840	)		(6,544	)
Present value of lease obligations		5,579			16,859			22,438
Less—current portion of lease obligations		(2,098	)		(1,987	)		(4,085	)
Long-term portion of lease obligations	$	3,481		$	14,872		$	18,353