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LEASES | 9 Months Ended
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Sep. 30, 2024
Leases [Abstract] |
LEASES | NOTE 5. LEASES We have operating leases for certain manufacturing sites, office space, and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from one to five years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do not contain any material residual value guarantees or material restrictive covenants. We amended our operating leases for part of our manufacturing facility in China and our corporate office in Maple Grove, Minnesota during the first nine months of 2024 which extended the lease through August of 2033 with monthly lease payments of $14 to $18. As of September 30, 2024, we have a lease commitment of approximately $400 for a finance lease that will commence in the fourth quarter of 2024. The components of lease expense were as follows: SCHEDULE OF COMPONENTS OF LEASE EXPENSE
Lease Cost |  | 2024 |  |  | 2023 |
|  | Three Months Ended September 30, |
Lease Cost |  | 2024 |  |  | 2023 |
Operating lease cost |  | $ | 569 |  |  | $ | 576 |
Finance lease interest cost |  |  | 6 |  |  |  | 9 |
Finance lease amortization expense |  |  | 265 |  |  |  | 182 |
Total lease cost |  | $ | 840 |  |  | $ | 767 |
Lease Cost |  | 2024 |  |  | 2023 |
|  | Nine Months Ended September 30, |
Lease Cost |  | 2024 |  |  | 2023 |
Operating lease cost |  | $ | 1,746 |  |  | $ | 1,735 |
Finance lease interest cost |  |  | 18 |  |  |  | 32 |
Finance lease amortization expense |  |  | 394 |  |  |  | 546 |
Total lease cost |  | $ | 2,158 |  |  | $ | 2,313 |
Supplemental condensed consolidated balance sheet information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION RELATED TO LEASES
|  | Balance Sheet Location |  | September 30, 2024 |  |  | December 31, 2023 |
Assets |  |  |  |  |  |  |  |  |  |
Finance lease assets |  | Property and equipment, net |  | $ | 485 |  |  | $ | 636 |
Operating lease assets |  | Operating lease assets, net |  |  | 8,034 |  |  |  | 6,917 |
Total leased assets |  |  |  | $ | 8,519 |  |  | $ | 7,553 |
Liabilities |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |
Current finance lease liabilities |  | Current portion of finance lease obligations |  | $ | 175 |  |  | $ | 356 |
Current operating lease liabilities |  | Current portion of operating lease obligations |  |  | 1,174 |  |  |  | 1,033 |
Noncurrent |  |  |  |  |  |  |  |  |  |
Long-term finance lease liabilities |  | Long-term finance lease liabilities, net of current portion |  |  | 340 |  |  |  | 209 |
Long-term operating lease liabilities |  | Long-term operating lease obligations, net of current portion |  |  | 7,689 |  |  |  | 6,763 |
Total lease liabilities |  |  |  | $ | 9,378 |  |  | $ | 8,361 |
Supplemental condensed consolidated statement of cash flows information for the nine months ended September 30, 2024 related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS INFORMATION
|  | September 30, |  |  | September 30, |
|  | 2024 |  |  | 2023 |
Operating Leases |  |  |  |  |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 468 |  |  | $ | 1,381 |
Property acquired under operating lease |  | $ | 1,923 |  |  | $ | - |
Future payments of lease liabilities as of September 30, 2024 were as follows: SCHEDULE OF FUTURE PAYMENTS OF LEASE LIABILITIES
|  | Operating Leases |  |  | Finance Leases |  |  | Total |
2024 |  | $ | 469 |  |  | $ | 70 |  |  | $ | 539 |
2025 |  |  | 1,809 |  |  |  | 165 |  |  |  | 1,974 |
2026 |  |  | 1,774 |  |  |  | 168 |  |  |  | 1,942 |
2027 |  |  | 1,472 |  |  |  | 60 |  |  |  | 1,532 |
2028 |  |  | 1,469 |  |  |  | 60 |  |  |  | 1,529 |
Thereafter |  |  | 5,505 |  |  |  | 44 |  |  |  | 5,549 |
Total lease payments |  | $ | 12,498 |  |  | $ | 567 |  |  | $ | 13,065 |
Less: imputed interest |  |  | (3,635 | ) |  |  | (52 | ) |  |  | (3,687 | )
Present value of lease liabilities |  | $ | 8,863 |  |  | $ | 515 |  |  | $ | 9,378 |
The lease term and discount rate as of September 30, 2024 were as follows: SCHEDULE OF LEASE TERM AND DISCOUNT RATE
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  |  | 7.9 |
Finance leases |  |  | 3.4 |
Weighted-average discount rate |  |  |  |
Operating leases |  |  | 7.8 | %
Finance leases |  |  | 5.7 | %

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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