Note 13 - Leases

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

13. Leases

The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2034. The Company’s primary operating lease commitments as of March 31, 2024, related to the Company’s manufacturing facilities in Valdosta, Georgia, Nogales, Arizona and Salt Lake City, Utah, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.

As of March 31, 2024, the Company had operating lease right-of-use assets of $9,451,000 and operating lease liabilities of $9,465,000. As of March 31, 2024, we did not have any finance leases recorded on the Company’s consolidated balance sheet. Operating lease expense was approximately $370,000 during the three months ended March 31, 2024.

The aggregate future minimum lease payments and reconciliation to lease liabilities as of March 31, 2024 were as follows:

	March 31,
	2024
Remaining nine months of 2024	$	1,162,000
2025		1,471,000
2026		1,477,000
2027		1,459,000
2028		1,489,000
2029		1,520,000
Thereafter		4,856,000
Total future minimum lease payments		13,434,000
Less imputed interest		(3,969,000	)
Total lease liabilities	$	9,465,000

As of March 31, 2024, the weighted average remaining lease term of the Company’s operating leases was 10.46 years. During the three months ended March 31, 2024, the weighted average discount rate with respect to these leases was 6.99%.