Note 6 - Leases

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lease Disclosure [Text Block]

NOTE 6. 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, 2022, we do not have material lease commitments that have not commenced. We did extend and add operating leases for our manufacturing facilities in 2021.

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,		December 31,
Lease Cost	2022		2021
Operating lease cost	$	2,309	$	2,291
Finance lease interest cost		63		79
Finance lease amortization expense		730		502
Total lease cost	$	3,102	$	2,872

Supplemental balance sheet information related to leases was as follows:

	Balance Sheet Location	December 31, 2022		December 31, 2021
Assets
Operating lease assets	Operating lease assets	$	7,850	$	8,983
Finance lease assets	Property, Plant and Equipment		1,363		2,052
Total leased assets		$	9,213	$	11,035
Liabilities
Current
Current operating lease liabilities	Current Portion of Operating Lease Obligations	$	1,155	$	1,043
Current finance lease liabilities	Current Portion of Finance Lease Obligations		390		601
Noncurrent
Long-term operating lease liabilities	Long Term Operating Lease Liabilities, Net		7,549		8,695
Long term finance lease liabilities	Long Term Finance Lease Obligations, Net		565		916
Total lease liabilities		$	9,659	$	11,255

Supplemental cash flow information related to leases was as follows:

	December 31,		December 31,
	2022		2021
Operating leases
Cash paid for amounts included in the measurement of lease liabilities	$	1,721	$	1,649
Right-of-use assets obtained in exchange for lease obligations	$	44	$	1,188

The right-of use-assets obtained in exchange in for lease obligations in the year ended December 31, 2021 was largely due to leasing of additional space in our Suzhou, China facility.

Maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases			Total
2023		1,786			433			2,219
2024		1,515			379			1,894
2025		1,265			103			1,368
2026		1,227			109			1,336
2027		1,256			-			1,256
Thereafter		5,818			-			5,818
Total lease payments	$	12,867		$	1,024		$	13,891
Less: Interest		(4,163	)		(69	)		(4,232	)
Present value of lease liabilities	$	8,704		$	955		$	9,659

The lease term and discount rate at December 31, 2022 were as follows:

Weighted-average remaining lease term (years)
Operating leases	8.9
Finance leases	2.6
Weighted-average discount rate
Operating leases	7.7	%
Finance leases	5.2	%