XML 20 R11.htm IDEA: XBRL DOCUMENT v3.23.3
Note 4 - Commitments & Contingencies
9 Months Ended
Sep. 30, 2023
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]

(4)   Commitments & Contingencies

 

Commitments

 

Operating Leases

The Company has one real estate lease expiring in February 2026. CPS also has a few operating leases for equipment which are minor in nature and are generally short-term in duration. None of these equipment leases has been capitalized as the Company elected an accounting policy for short-term leases, which allows lessees to avoid recognizing right-of-use assets and liabilities for leases with terms of 12 months or fewer.

 

The real estate lease expiring in 2026 (the “Norton facility lease”) is included as a right-of-use lease asset and corresponding lease liability on the balance sheet. This asset and liability was recognized based on the present value of lease payments over the lease term using the Company’s incremental borrowing rate at commencement date. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.

 

The Norton facility lease comprises approximately 38 thousand square feet. The lease is triple net lease wherein the Company is responsible for payment of all real estate taxes, operating costs and utilities. The Company also has an option to renew the lease starting in March 2026 through February 2032. Annual rental payments range from $160 thousand to $165 thousand through maturity.

 

The following table presents information about the amount, timing and uncertainty of cash flows arising from the Company’s facility lease as of September 30, 2023.

 

(Dollars in Thousands)

 

 

 

Maturity of capitalized lease liabilities

 

Lease payments

 
     

2023

  41 

2024

  165 

2025

  165 

2026

  27 

Total undiscounted operating lease payments

 $398 

Less: Imputed interest

  (31

)

Present value of operating lease liability

 $367 
     

Balance Sheet Classification

    

Current lease liability

 $159 

Long-term lease liability

  208 

Total operating lease liability

 $367 
     

Other Information

    

Remaining lease term for capitalized operating leases (in months)

  29 

Discount rate

  6.6

%

 

Operating Lease Costs and Cash Flows

Operating lease cost and cash paid was $41 thousand during the third quarter of 2023 and $122 thousand for the nine months ended September 30, 2023. These costs are related to its long-term operating lease. All other short-term leases were immaterial.

 

Finance Leases

The company does not have any finance leases.