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Note 5 - Balance Sheet Information

9 Months Ended

Sep. 30, 2024

Supplemental Balance Sheet Disclosures [Text Block]

5.	Balance Sheet Information

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

*Inventories:*	September 30,		December 31,
(in thousands)	2024		2023
Finished goods	$	4,752	$	5,120
Work in process		3,471		4,188
Raw materials		17,767		15,408
Total	$	25,990	$	24,716

*Other Current Liabilities:*	September 30,		December 31,
(in thousands)	2024		2023
Compensation	$	1,856	$	3,929
Customer credits		1,123		3,201
Current portion of operating lease liabilities		1,127		1,416
Employee retention tax credit funds		3,154		-
Professional fees		874		499
Warranty costs		415		336
Other		1,624		1,240
Total	$	10,173	$	10,621

The Coronavirus Aid, Relief, and Economic Security Act of 2020 (“CARES Act”) provided an employee retention tax credit (“ERTC”) that was a refundable tax credit against certain employer taxes. The Company 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 ERTC refunds of $3.2 million during the nine months ended September 30, 2024. Due to the subjectivity of the credit, the Company has included the refunds received in other current liabilities in the consolidated balance sheet as of September 30, 2024, subject to a determination that the refunds are recognizable.

The Company engaged a professional services firm under a commission fee arrangement to assist with determining the Company’s eligibility to claim the ERTC refunds and accumulating the necessary support that was used as a basis in the filing. During the nine months ended September 30, 2024, the Company paid fees of $0.5 million for these services, which are included in other operating expenses in the consolidated statement of operations.