Note 14 - Leases

12 Months Ended

Dec. 31, 2023

Notes

Note 14 - Leases

Note 14 – Leases

UTMD has operating leases for a portion of its parking lot at its Midvale facility and an automobile at its Ireland facility.  The remaining lease term on the parking lot is 8 years and on the automobile is 6 months.  There are no options to extend or terminate the leases.  The parking lot lease contains a provision that requires an adjustment every five years to the lease payment based on the change in the Consumer Price Index.  This adjustment occurred in 2021 requiring an increase of $87 to the value of the right-of-use asset and lease liabilities. UTMD has no other leases yet to commence.  As neither lease contains implicit rates, UTMD’s incremental borrowing rate, based on information available at adoption date, was used to determine the present value of the leases.

Operating lease costs for the years ended December 31, 2023, 2022, and 2021 were $65, $64, and $63, respectively.

Supplemental balance sheet information related to operating leases was as follows (in thousands):

	As of December 31, 2023
Operating lease right-of-use assets	$342
Operating lease liabilities, current (included in Accrued Expenses)	47
Operating lease liabilities, long-term	295
Total operating lease liabilities	$342

Maturities of operating lease liabilities at December 31, 2023 were as follows (in thousands):	As of December 31, 2023
2024	$45
2025	41
2026	42
2027	43
2028	44
Thereafter	125
Total lease payments	$381
Less: imputed interest	(39)
Total lease liabilities	$342
The following table provides information on the lease terms and discount rates:	As of December 31, 2023
Weighted-average remaining lease term  (in years)	7.4 years
Weighted-average discount rate	3.0%