Note 7 - Leases

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Lease Disclosure [Text Block]

7. LEASES

Operating leases

Consolidated total operating lease costs were $1.6 million for the three months ended March 31, 2023 and $1.8 million for the three months ended March 31, 2022 and are included in cost of sales; selling, general and administrative expense; and other income (expense), on the condensed consolidated statement of operations. 

Future minimum operating lease obligations at March 31, 2023 are as follows for the years ended December 31:

(in thousands)
2023 (remaining period)	$	4,212
2024		4,619
2025		3,118
2026		2,616
2027		1,963
Thereafter		1,815
Interest portion		(2,672	)
Total operating lease obligations	$	15,671

Total lease cost and other lease information is as follows:

	For the Three Months Ended March 31,
(in thousands)	2023			2022
Operating lease cost	$	1,591		$	1,623
Short-term lease cost		62			59
Variable lease cost		71			251
Sublease income		(129	)		(129	)
Total lease cost	$	1,595		$	1,804

Other information - Operating leases (in thousands)	For the Three Months Ended March 31,
	2023			2022
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows used in operating leases	$	(1,526	)	$	(1,635	)
Right-of-use assets obtained in exchange for new operating lease obligations	$	240		$	3,172
Weighted-average remaining lease term - operating leases (in years)		4.5			4.5
Weighted-average discount rate - operating leases		7.1	%		7.1	%

Variable lease costs primarily include common area maintenance costs, real estate taxes and insurance costs passed through to the Company from lessors.

Financing leases

Consolidated total financing lease costs were $1.2 million and $1.5 million for the three months ended March 31, 2023 and 2022 and are included in depreciation in cost of sales and interest expense.

Future minimum finance lease obligations at March 31, 2023 are as follows for the years ended December 31:

(in thousands)
2023 (remaining period)	$	4,658
2024		5,336
2025		1,945
2026		946
2027		48
Thereafter		—
Interest portion		(1,188	)
Total financing lease obligations	$	11,745

Total financing lease costs are as follows:

	For the Three Months Ended March 31,
(in thousands)	2023		2022
Depreciation of financing lease assets	$	1,016	$	1,308
Interest on lease liabilities		199		241
Total finance lease cost	$	1,215	$	1,549

Other information - Financing leases	For the Three Months Ended March 31,
(in thousands)	2023			2022
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from financing leases	$	(199	)	$	(241	)
Financing cash flows from financing leases	$	(1,310	)	$	(1,212	)
Right-of-use assets obtained in exchange for new financing lease obligations	$	67		$	837
Weighted-average remaining lease term - financing leases (in years)		2.4			2.8
Weighted-average discount rate - finance leases		6.5	%		6.5	%