Note 6 - Leases

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Lessee, Leases [Text Block]

6. Leases

The Company has 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, 2023 and December 31, 2022:

	March 31,			December 31,
(In thousands)	2023			2022
Weighted average discount rate - operating leases		4.3	%		4.2	%
Weighted average discount rate - finance leases		6.1	%		6.1	%
Weighted average remaining lease term in years - operating leases		6.9			7.2
Weighted average remaining lease term in years - finance leases		1.8			2.0

The components of lease expense for the three months ended March 31, 2023 and 2022 were as follows:

	Three Months Ended
	March 31,
(In thousands)	2023		2022
Operating lease costs	$	897	$	913
Short-term lease costs		402		565
Total operating lease costs		1,299		1,478
Variable lease costs		259		305
Total lease costs	$	1,558	$	1,783

Maturities of our lease liabilities as of March 31, 2023 are as follows: 

(In thousands)	Operating Leases			Financing Leases
2023 (9 months remaining)	$	2,690		$	128
2024		3,398			101
2025		2,954			38
2026		2,533			2
2027		2,280			-
Thereafter		6,938			-
Total lease payments		20,793			269
Less: interest		(2,773	)		(13	)
Total present value of lease liabilities	$	18,020		$	256