Note 7 - Operating Leases

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

7.  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 June 30, 2023, the Company recognized a Right-Of-Use (“ROU”) asset of $2.3 million and an operating lease liability of $2.5 million based on the net present value of the minimum lease payments. The weighted average discount rate used for leases as of June 30, 2023, is 3.9%. The weighted average lease term as of June 30, 2023, is 2.9 years. The operating lease expense for the three and six months ended June 30, 2023, was $258 thousand and $520 thousand, respectively.

Maturities and balance sheet presentation of the Company’s lease liabilities for all operating leases as of June 30, 2023, is as follows (in thousands):

July 1, 2023, through December 31, 2023	$	585
2024		1,106
2025		564
2026		460
Total lease payments		2,715
Less: interest		(182	)
Present value of lease liabilities	$	2,533
Current operating lease liabilities	$	1,067
Long-term operating lease liabilities		1,466
	$	2,533