XML 22 R12.htm IDEA: XBRL DOCUMENT

Note 6 - Leases

3 Months Ended

Apr. 02, 2023

Lessee, Operating and Finance Leases [Text Block]

Note 6 — Leases

The Company's principal research and development and corporate facilities are leased office buildings located in the United States. These lease facilities are classified as operating leases and have lease terms of one to five years. The Company maintains sales offices out of which it conducts sales and marketing activities in various countries outside of the United States which are rented under short-term leases. The Company has elected the practical expedient to apply to recognition requirements to short-term leases and recognizes rent payments on short-term leases on a straight-line basis over the lease term. Finance leases are primarily for engineering design software and have leases terms of generally two to three years. Total rent expenses were $0.1 million for each of the three months ended April 2, 2023 and April 3, 2022.

Right-of-use assets were approximately $1.6 million and $1.4 million as of April 2, 2023 and January 1, 2023, respectively. Lease liabilities were approximately $1.6 million and $1.4 million as of April 2, 2023 and January 1, 2023, respectively.

The following table provides the expenses related to operating and finance leases (in thousands):

	*Three Months Ended*
	*April 2, 2023*		*April 3, 2022*
Operating lease costs:
Fixed	$	100	$	100
Short term		4		6
Total	$	104	$	106
Finance lease costs:
Amortization of ROU asset	$	160	$	109
Interest		22		7
Total	$	182	$	116

Right-of-use assets obtained in exchange for new finance and operating lease liabilities represent the new operating and finance leases entered into during the three months ended April 2, 2023 and April 3, 2022 was $445 thousand and $0, respectively.

The following table provides the details of supplemental cash flow information (in thousands):

	*Three Months Ended*
	*April 2, 2023*		*April 3, 2022*
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	103	$	100
Operating cash flows used for finance leases		22		7
Financing cash flows used for finance leases		142		98
Total	$	267	$	205

Non-cash ROU assets included in the operating cash flows for the three months ended April 2, 2023 and April 3, 2022 were $155 thousand and $193 thousand, respectively.

The following table provides the details of right-of-use assets and lease liabilities as of April 2, 2023 and January 1, 2023 (in thousands):

	*April 2, 2023*		*January 1, 2023*
Right-of-use assets:
Operating leases	$	374	$	464
Finance leases		1,218		933
Total right-of-use assets	$	1,592	$	1,397
Lease liabilities:
Operating leases	$	411	$	507
Finance leases		1,190		887
Total lease liabilities	$	1,601	$	1,394

The following table provided the details of future lease payments for operating and finance leases as of April 2, 2023 (in thousands):

	*Operating Leases*			*Finance Leases*
2023 (remaining period)	$	319		$	494
2024		106			624
2025		—			169
Total lease payments		425			1,287
Less: Interest		(14	)		(97	)
Present value of lease liabilities	$	411		$	1,190

The following table provides the details of lease terms and discount rates as of April 2, 2023 and January 1, 2023:

	April 2, 2023			January 1, 2023
Right-of-use assets:
Weighted-average remaining lease term (years)
Operating leases		1.00			1.25
Finance leases		2.29			1.91
Weighted-average discount rates:
Operating leases		6.00	%		6.00	%
Finance leases		6.67	%		5.95	%