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Note 5 - Balance Sheet Information

3 Months Ended

Mar. 31, 2025

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:*	March 31,		December 31,
(in thousands)	2025		2024
Finished goods	$	5,128	$	5,222
Work in process		3,017		2,754
Raw materials		14,671		15,269
Total	$	22,816	$	23,245

*Other Current Liabilities:*	March 31,		December 31,
(in thousands)	2025		2024
Compensation	$	1,879	$	1,714
Customer credits		1,244		1,286
Current portion of operating lease liabilities		1,419		1,158
Employee retention tax credit funds		4,287		3,154
Professional fees		762		545
Warranty costs		323		318
Other		1,496		1,234
Total	$	11,410	$	9,409

The Coronavirus Aid, Relief, and Economic Security Act of 2020 (the “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 $1.1 million and $3.2 million during the three months ended March 31, 2025 and 2024, respectively. Due to the subjectivity of the credit, the Company has included the refunds received in other current liabilities in the consolidated balance sheets as of March 31, 2025 and 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. The Company paid fees of $0.2 million and $0.5 million during the three months March 31, 2025 and 2024, respectively, for these services, which are included in other operating expenses in the consolidated statement of operations.