Note 5 - Leases

6 Months Ended

Jun. 30, 2022

Notes to Financial Statements

Lessee, Leases [Text Block]

5. 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 June 30, 2022 and December 31, 2021:

	June 30,			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		7.5			7.8
Weighted average remaining lease term in years - finance leases		2.5			3.0

The components of lease expense for the three and six months ended June 30, 2022 and 2021 were as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(In thousands)	2022		2021		2022		2021
Operating lease costs	$	929	$	679	$	1,836	$	1,154
Short-term lease costs		519		450		986		661
Total operating lease costs		1,448		1,129		2,822		1,815
Variable lease costs		254		157		559		284
Total lease costs	$	1,702	$	1,286	$	3,381	$	2,099

Maturities of our lease liabilities as of June 30, 2022 are as follows: 

(In thousands)	Operating Leases			Financing Leases
2022 (6 months remaining)	$	1,756		$	86
2023		3,199			171
2024		2,921			101
2025		2,461			37
2026		2,001			1
Thereafter		8,364			-
Total lease payments		20,702			396
Less: interest		(2,764	)		(30	)
Total present value of lease liabilities	$	17,938		$	366