Note 6 - Operating Leases

3 Months Ended

Mar. 31, 2022

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 March 31, 2022, the Company recognized a Right-Of-Use (“ROU”) asset of $3.3 million and an operating lease liability of $3.7 million based on the present value of the minimum rental payments. The weighted average discount rate used for leases as of March 31, 2022, is 3.9%. The weighted average lease term as of March 31, 2022, is 3.8 years. The operating lease expense for the three months ended March 31, 2022, was $269 thousand.

Maturities and balance sheet presentation of the Company’s lease liabilities for all operating leases as of March 31, 2022, is as follows (in thousands):

April 1, 2022, through December 31, 2022	$	822
2023		1,118
2024		1,034
2025		544
2026		460
Total lease payments		3,978
Less: interest		(327	)
Present value of lease liabilities	$	3,651
Current operating lease liabilities	$	994
Long-term operating lease liabilities		2,657
	$	3,651