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Note 5 - Balance Sheet Information

3 Months Ended

Mar. 31, 2024

Supplemental Balance Sheet Disclosures [Text Block]

Balance Sheet Information

The following tables provide details of selected balance sheet items as of the periods indicated:

*Inventories:*	March 31,		December 31,
(in thousands)	2024		2023
Finished goods	$	5,917	$	5,120
Work in process		2,865		4,188
Raw materials		15,354		15,408
Total	$	24,136	$	24,716

*Other Current Liabilities:*	March 31,		December 31,
(in thousands)	2024		2023
Compensation	$	3,215	$	3,929
Customer credits		1,548		3,201
Employee retention credit funds		3,154		-
Professional fees		514		499
Warranty costs		359		336
Other		1,538		1,240
Total	$	10,328	$	9,205

The Coronavirus Aid, Relief, and Economic Security Act of 2020 (“CARES Act”) provided an employee retention credit (“ERC”) that was a refundable tax credit against certain employer taxes. The Company has elected to account for the credit as a government grant. As there is no authoritative guidance under U.S. GAAP on accounting for grants to for-profit business entities from government entities, the Company accounts for government assistance by analogy to International Accounting Standards Topic 20, Accounting for Government Grants and Disclosure of Government Assistance (IAS 20). Under IAS 20, government grants are recognized when there is reasonable assurance that the grant will be received and that all conditions related to the grant will be met.

The Company received an ERC refund of $3.2 million during the quarter ended March 31, 2024. Due to the subjectivity of the credit, the Company has included the refund received in other current liabilities in the consolidated balance sheet as of March 31, 2024, subject to a determination that the refund is recognizable under IAS 20.

The Company engaged a professional services firm under a commission fee arrangement to assist with determining program eligibility and in accumulating the necessary support that was used as a basis in the filing. During the three months ended March 31, 2024, the Company paid a fee of $0.5 million for these services, which is included in other operating expenses in the consolidated statement of operations.