Note 6 - Operating Leases

9 Months Ended

Sep. 30, 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 of the lease payments.

As of September 30, 2022, the Company recognized an ROU asset of $2.9 million and an operating lease liability of $3.2 million based on the present value of the minimum rental payments. The weighted average discount rate used for leases as of September 30, 2022, is 3.8%. The weighted average lease term as of September 30, 2022, is 3.4 years. The operating lease expense for the three and nine months ended September 30, 2022, was $262 thousand and $762 thousand, respectively.

Maturities and balance sheet presentation of the Company’s lease liabilities for all operating leases as of September 30, 2022, is as follows (in thousands):

October 1, 2022, through December 31, 2022	$	238
2023		1,133
2024		1,061
2025		553
2026		460
Total Lease Payments		3,445
Less: Interest expense		(260	)
Present value of lease liabilities	$	3,185
Current operating lease liabilities	$	985
Long-term operating lease liabilities		2,200
	$	3,185