Note 5 - Leases

9 Months Ended

Sep. 30, 2023

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, 2023, 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	2023		2022
Operating lease cost	$	576	$	572
Finance lease interest cost		9		14
Finance lease amortization expense		182		182
Total lease cost	$	767	$	768

	Nine Months Ended September 30,		Nine Months ended September 30,
Lease Cost	2023		2022
Operating lease cost	$	1,735	$	1,731
Finance lease interest cost		32		50
Finance lease amortization expense		546		547
Total lease cost	$	2,313	$	2,328

Supplemental balance sheet information related to leases was as follows:

	Balance Sheet Location	September 30, 2023		December 31, 2022
Assets
Operating lease assets	Operating lease assets	$	6,955	$	7,850
Finance lease assets	Property, Plant and Equipment		817		1,363
Total leased assets		$	7,772	$	9,213

Supplemental cash flow information related to leases was as follows:

	September 30,		September 30,
	2023		2022
Operating leases
Cash paid for amounts included in the measurement of lease liabilities	$	1,381	$	1,279

Maturities of lease liabilities were as follows:

	Operating Leases			Finance Leases			Total
Remaining 2023	$	434		$	108		$	542
2024		1,514			379			1,893
2025		1,265			106			1,371
2026		1,227			107			1,334
2027		1,256			-			1,256
Therafter		5,817			-			5,817
Total lease payments	$	11,513		$	700		$	12,213
Less: Interest		(3,682	)		(38	)		(3,720	)
Present value of lease liabilities	$	7,831		$	662		$	8,493

The lease term and discount rate at September 30, 2023 were as follows:

Weighted-average remaining lease term (years)
Operating leases	8.7
Finance leases	2.0
Weighted-average discount rate
Operating leases	7.8	%
Finance leases	5.3	%