Note 8 - Leases

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8. Leases

Lessee Information

The Company determines if an arrangement contains a lease at inception. Where an arrangement contains a lease, the Company determines if it is an operating lease or a finance lease. Subsequently, if the arrangement is modified, the Company reevaluates the classification. The Company has entered into operating leases for corporate office buildings, vehicles, and machinery and equipment. Some of the lease agreements have renewal options, tenant improvement allowances, rent escalation clauses, and assignment and subletting clauses. While the operating leases range from one year to ten years, some include options to extend the lease generally between one year and six years, and some include options to terminate the leases within one year.

Components of operating lease expense are primarily recorded in general and administrative on the condensed consolidated statements of operations and comprehensive loss were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(in thousands)				(in thousands)
Long-term Operating	$	408	$	392	$	1,192	$	1,315
Short-term Operating		-		-		-		-
Total Operating lease expense	$	408	$	392	$	1,192	$	1,315

Supplemental balance sheet information related to operating leases was as follows:

	September 30, 2022			December 31, 2021
Weighted-average remaining lease term (in years)		7.2			7.8
Weighted-average discount rate		8.2%			7.8%
Incremental borrowing rate	6.1%	-	14.5%	6.1%	-	8.5%

Maturities of operating lease obligations as of September 30, 2022 were as follows (in thousands):

Fiscal Year
2022	$	226
2023		1,088
2024		1,006
2025		954
2026		805
Thereafter		2,925
Total minimum lease payments	$	7,004
Less: Amount of lease payments representing interest		(1,712	)
Present value of future minimum lease payments	$	5,292