Note 5 - Leases

9 Months Ended

Sep. 30, 2022

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 September 30, 2022, we do not have material lease commitments that have not commenced.

The components of lease expense were as follows:

	Three Months Ended September 30,		Three Months Ended September 30,
Lease Cost	2022		2021
Operating lease cost	$	572	$	576
Finance lease interest cost		14		18
Finance lease amortization expense		182		163
Total lease cost	$	768	$	757

	Nine Months Ended September 30,		Nine Months ended September 30,
Lease Cost	2022		2021
Operating lease cost	$	1,731	$	1,696
Finance lease interest cost		50		61
Finance lease amortization expense		547		489
Total lease cost	$	2,328	$	2,246

Supplemental balance sheet information related to leases was as follows:

	Balance Sheet Location	September 30, 2022		December 31, 2021
Assets
Operating lease assets	Operating lease assets	$	8,079	$	8,983
Finance lease assets	Property, plant and equipment		1,505		2,052
Total leased assets		$	9,584	$	11,035

Supplemental cash flow information related to leases was as follows:

	September 30,		September 30,
	2022		2021
Operating leases
Cash paid for amounts included in the measurement of lease liabilities	$	1,279	$	861
Right-of-use assets obtained in exchange for lease obligations	$	-	$	858

Maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases			Total
Remaining 2022	$	430		$	126		$	556
2023		1,765			409			2,175
2024		1,505			357			1,861
2025		1,255			103			1,358
2026		1,217			108			1,332
Thereafter		7,066			-			7,066
Total lease payments	$	13,238		$	1,103		$	14,341
Less: Interest		(4,328	)		(74	)		(4,402	)
Present value of lease liabilities	$	8,910		$	1,029		$	9,939

The lease term and discount rate at September 30, 2022 were as follows:

Weighted-average remaining lease term (years)
Operating leases	9.1
Finance leases	2.8
Weighted-average discount rate
Operating leases	7.7	%
Finance leases	5.2	%