Note 6 - Operating Leases

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

6. Operating Leases

The Company has five operating leases for office and laboratory space used to conduct business. The exercise of lease renewal options is at our discretion. There is one lease which contains renewal options to extend the lease terms included in our Right-Of-Use (“ROU”) assets and lease liabilities as they are reasonably certain of exercise. The Company regularly evaluates the renewal options and when they are reasonably certain of exercise. As most of the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at the lease commencement date in determining the net present value (NPV) of the lease payments.

As of June 30, 2021, the Company recognized a Right-Of-Use (“ROU”) asset of $4.0 million and an operating lease liability of $4.5 million based on the present value of the minimum rental payments as a result of adoption of ASC Topic 842. The weighted average discount rate used for leases as of June 30, 2021, is 3.9%. The weighted average lease term as of June 30, 2021, is 4.5 years. The operating lease expense for the three and six months ended June 30, 2021, was $269 thousand and $538 thousand, respectively.

Maturities and balance sheet presentation of the Company’s lease liabilities for all operating leases as of June 30, 2021, is as follows (in thousands):

July 1, 2021, through December 31, 2021		532
2022		1,117
2023		1,118
2024		1,034
2025		592
2026		460
Total Lease Payments		4,853
Less: Interest expense		(398	)
Present value of lease liabilities	$	4,455
Current operating lease liabilities	$	965
Long-term operating lease liabilities		3,490
	$	4,455