Note 5 - Leases

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Lease Disclosure [Text Block]

NOTE

5.

LEASES

We have operating leases for certain manufacturing sites, office space, and equipment. Most leases include the option to renew, with renewal terms that can extend the lease term from

one

to

five

years or more. Right-of-use lease assets and lease liabilities are recognized at the commencement date based on the present value of the remaining lease payments over the lease term which includes renewal periods we are reasonably certain to exercise. Our leases do

not

contain any material residual value guarantees or material restrictive covenants. At

December 31, 2019,

we do

not

have material lease commitments that have

not

commenced.

We have financing leases for certain property and equipment used in the normal course of business.

The components of lease expense were as follows:

	December 31 ,
Lease Cost	2019
Operating lease cost	$	1,014
Finance lease interest cost		69
Finance lease amortization expense		306
Total lease cost	$	1,389

Supplemental balance sheet information related to leases was as follows:

	Balance Sheet Location	December 31 , 2019
Assets
Operating lease assets	Operating lease assets	$	4,827
Finance lease assets	Property, Plant and Equipment		2,447
Total leased assets		$	7,274
Liabilities
Current
Current operating lease liabilities	Current Portion of Operating Lease Obligations	$	858
Current finance lease liabilities	Current Portion of Finance Lease Obligations		557
Noncurrent
Long-term operating lease liabilities	Long Term Operating Lease Liabilities, Net		4,366
Long term finance lease liabilities	Long Term Finance Lease Obligations, Net		1,451
Total lease liabilities		$	7,232

Supplemental cash flow information related to leases was as follows:

	December 31 ,
	2019
Operating leases
Cash paid for amounts included in the measurement of lease liabilities	$	777
Right-of-use assets obtained in exchange for lease obligations	$	5,731

Maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases			Total
2020	$	858		$	649		$	1,507
2021		722			649			1,371
2022		726			485			1,211
2023		738			244			982
2024		798			188			986
Thereafter		2,582			0			2,582
Total lease payments	$	6,424		$	2,215		$	8,639
Less: Interest		(1,200	)		(207	)		(1,407	)
Present value of lease liabilities	$	5,224		$	2,008		$	7,232

The lease term and discount rate at

December 31, 2019

were as follows:

Weighted-average remaining lease term (years)
Operating leases	7.8
Finance leases	3.7
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	5.3	%

Rent expense for our operating leases the year ended

December 31, 2018

as accounted under ASC

840,

Leases

, was

$1,376.

The future minimum lease commitments as of

December 31, 2018,

under ASC

840

are as follows:

	Operating Leases
2019	$	1,024
2020		858
2021		722
2022		726
2023		738
Thereafter		3,380
Total minimum obligations	$	7,448