Note 14 - Leases

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Lessee, Leases [Text Block]

14. Leases

We have various operating lease agreements for office space, warehouses, manufacturing, and production locations as well as vehicles and other equipment. Our real estate leases have remaining lease terms of one to ten years. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from one to five years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. For certain leases, we receive incentives from our landlords, such as rent abatements, which effectively reduce the total lease payments owed for these leases. Vehicle and other equipment operating leases have terms between one and five years.

Our financing leases relate to research equipment, machinery, and other equipment. 

The table below presents certain information related to the weighted average discount rate and weighted average remaining lease term for the Company’s leases as of March 31, 2022 and December 31, 2021:

	March 31,			December 31,
(In thousands)	2022			2021
Weighted average discount rate - operating leases		3.8	%		3.8	%
Weighted average discount rate - finance leases		6.1	%		6.1	%
Weighted average remaining lease term in years - operating leases		7.6			7.8
Weighted average remaining lease term in years - finance leases		2.7			3.0

The components of lease expense for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
(In thousands)	2022		2021
Operating lease costs	$	913	$	460
Short-term lease costs		565		137
Total operating lease costs		1,478		597
Variable lease costs		305		128
Total lease costs	$	1,783	$	725

Maturities of our lease liabilities as of March 31, 2022 are as follows: 

(In thousands)	Operating Leases			Financing Leases
2022 (9 months remaining)	$	2,626		$	129
2023		3,230			171
2024		2,950			101
2025		2,485			37
2026		2,005			2
Thereafter		8,363			-
Total lease payments		21,659			440
Less: interest		(2,947	)		(36	)
Total present value of lease liabilities	$	18,712		$	404