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Note 9 - Leases

9 Months Ended

Sep. 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 nine months ended September 30, 2024 and 2023, the Company had additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations in the amount of $29 and $65, respectively. During the nine months ended September 30, 2024 and 2023, the Company had additional finance leases associated with property, plant, and equipment of $1,376 and $780, 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,*
	*2024*			*2023*			*2024*			*2023*
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	356		$	229		$	1,084		$	968
Interest on finance lease liabilities		112			108			340			292
Total finance lease costs		468			337			1,424			1,260
Operating lease cost components:
Operating lease cost		676			698			2,021			2,091
Short-term lease cost		40			122			140			289
Variable lease cost (1)		386			283			1,139			806
Sublease income		(50	)		(49	)		(149	)		(146	)
Total operating lease costs		1,052			1,054			3,151			3,040

Total lease cost	$	1,520		$	1,391		$	4,575		$	4,300

Supplemental cash flow information related to our operating leases is as follows for the nine months ended September 30, 2024 and 2023:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases							$	2,518		$	2,592

Weighted-average remaining lease term-finance leases at end of period (in years)								3.0			3.4
Weighted-average remaining lease term-operating leases at end of period (in years)								6.4			7.5
Weighted-average discount rate-finance leases at end of period								5.4	%		6.1	%
Weighted-average discount rate-operating leases at end of period								8.9	%		8.9	%

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

	*Finance*			*Operating*
	*Leases*			*Leases*			*Total*
2024	$	1,274		$	842		$	2,116
2025		1,767			3,455			5,222
2026		1,510			3,449			4,959
2027		1,213			3,151			4,364
2028		952			3,160			4,112
2029 and thereafter		520			7,804			8,324
Total lease payments		7,236			21,861			29,097
Less—portion representing interest		(831	)		(5,468	)		(6,299	)
Present value of lease obligations		6,405			16,393			22,798
Less—current portion of lease obligations		(2,270	)		(2,059	)		(4,329	)
Long-term portion of lease obligations	$	4,135		$	14,334		$	18,469