Note 10 - Derivative Contracts

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 10 DERIVATIVE CONTRACTS

The following table summarizes the fair values and the presentation of our derivative financial instruments in the Condensed Consolidated Balance Sheets:

	Balance Sheet	March 31,		December 31,
(In thousands)	Component	2024		2023
Derivative financial instruments:
Embedded conversion option	2029 Convertible Notes, net of discount and estimated fair value of embedded derivatives	$	151,870	$	—
Common Stock options/warrants	Investments, net	$	3	$	2
Forward contracts	Unrealized losses on forward contracts are recorded in Accrued expenses.	$	—	$	(29	)

We enter into foreign currency forward exchange contracts with respect to the risk of exposure to exchange rate differences arising from inventory purchases on letters of credit. Under these forward contracts, for any rate above or below the fixed rate, we receive or pay the difference between the spot rate and the fixed rate for the given amount at the settlement date.

To qualify the derivative instrument as a hedge, we are required to meet strict hedge effectiveness and contemporaneous documentation requirements at the initiation of the hedge and assess the hedge effectiveness on an ongoing basis over the life of the hedge. At March 31, 2024 and December 31, 2023, our derivative financial instruments did not meet the documentation requirements to be designated as hedges. Accordingly, we recognize the changes in fair value of derivative instruments, net in our Condensed Consolidated Statement of Operations. The following table summarizes the losses and gains recorded for the three months ended March 31, 2024 and 2023:

	Three months ended March 31,
(In thousands)	2024			2023
Derivative gain (loss):
Notes	$	(26,250	)	$	—
Common Stock options/warrants		1			(2	)
Forward contracts		88			(1,057	)
Total	$	(26,161	)	$	(1,059	)