Note 9 - Leases

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(9)  LEASES 

As previously discussed in Note 2, we account for our leases in accordance with the guidance in ASC Topic 842. We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases that expire at various dates through 2032. Total operating lease and short-term lease costs for the three and six months ended June 30, 2024 and 2023, respectively, were as follows: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Operating lease cost	$	509	$	403	$	960	$	803
Short-term lease cost	$	4	$	4	$	7	$	7

The following is additional information about our leases as of June 30, 2024:

Range of remaining lease terms (in years)	.3	to	7.7
Weighted average remaining lease term (in years)		6.1
Weighted average discount rate		6.6%

Maturities of lease liabilities as of June 30, 2024 were as follows:

2024 (remainder)	$	1,277
2025		2,551
2026		2,398
2027		2,231
2028		1,667
Thereafter		4,174
Total lease payments	$	14,298
Less imputed interest		(2,382	)
Total	$	11,916

Cash Flow Information

Total amortization of ROU assets was $282 and $685 for the three months and six months ended June 30, 2024, respectively, and $391 and $782 for the three months and six months ended June 30, 2023, respectively.

During the six months ended June 30, 2024 we acquired several auto leases in connection with our acquisition of Alfamation. The acquisition is discussed further in Note 3. We also entered into the Lease Agreement, described in Note 3, for the facility where Alfamation has its principal operations. This facility is owned by the seller. The leased premises include warehouse and office space totaling approximately 51,817 square feet. The yearly lease payment is EUR 260. The impact of the acquisition of these leases was a non-cash increase in our ROU assets and operating lease liabilities of approximately $1,758 at the date of the acquisition.

During the six months ended June 30, 2024 we also extended several building leases for certain of our facilities located in the U.S., the Netherlands and Singapore. At the effective dates of these extensions, we recorded non-cash increases in our ROU assets and operating lease liabilities totaling approximately $5,568.
 

During the six months ended June 30, 2023, we entered into a 25-month lease for a facility for our Environmental Technologies segment’s operation in Germany. At the effective date of this lease, we recorded a non-cash increase in our ROU assets and operating lease liabilities of approximately $90. During this same period, we entered into two auto leases, one with a 36-month term and one with a 48-month term, for employees of our Process Technologies segment both of whom are based in Europe. At the effective date of these leases, we recorded non-cash increases in our ROU assets and operating lease liabilities totaling approximately $71.