Note 8 - Leases

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(8) LEASES

We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases which expire at various dates through 2031. Total operating lease and short-term lease costs for the three months and nine months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Operating lease cost	$	247	$	393	$	865	$	1,174
Short-term lease cost	$	20	$	13	$	60	$	35

The following is additional information about our leases as of September 30, 2021:

Range of remaining lease terms (in years)	0.5	to	9.6
Weighted average remaining lease term (in years)			6.0
Weighted average discount rate			4.2	%

Maturities of lease liabilities as of September 30, 2021 were as follows:

2021 (remainder)	$	358
2022		1,469
2023		1,482
2024		1,474
2025		722
Thereafter		1,845
Total lease payments	$	7,350
Less imputed interest		(811	)
Total	$	6,539

Supplemental Cash Flow Information

Total amortization of ROU assets was $231 and $760 for the three months and nine months ended September 30, 2021, respectively, and $324 and $977 for the three months and nine months ended September 30, 2020, respectively.

Nine Months ended September 30, 2021

Non-cash increases in operating lease liabilities and ROU assets as a result of a lease modification for the nine months ended September 30, 2021 were as follows:

Execution of lease for facility in Fremont, California $ 202

On August 16, 2021, we executed a lease for approximately 3,888 square feet of office space for the engineering and sales staff located in Fremont, California. This lease has a 38.5 month term. At the effective date of this lease, we recorded an increase in our ROU assets and operating lease liabilities of approximately $202.

Nine Months ended September 30, 2020

Non-cash increases in operating lease liabilities and ROU assets as a result of lease modifications for the nine months ended September 30, 2020 were as follows:

Modification to lease for facility in Fremont, California	$	1,176
Modification to lease for facility in Mt. Laurel, New Jersey	$	2,051

On January 23, 2020, we executed an amendment to the lease for our EMS facility in Fremont, California, which extended the term for a period of 61 months commencing on November 1, 2020 and expiring on November 30, 2025. At the effective date of this modification, we recorded an increase in our ROU assets and operating lease liabilities of approximately $1,176. As discussed in Note 3 to our consolidated financial statements in our 2020 Form 10-K, as of December 31, 2020, we recorded an impairment charge of $522 related to the ROU asset associated with this lease. On July 19, 2021, we executed a sublease for this facility which commenced on August 1, 2021 and ends November 30, 2025, which is the termination date of our lease for this facility. We entered into this sublease approximately 14 months earlier than we had estimated in December 2020. As a result, we will record approximately $350 of incremental sublease income above the level that we had estimated at the time that we recorded the impairment charge in December 2020. This income will be recorded ratably over the term of the sublease and will be included in other income in our consolidated statements of operations.

On September 22, 2020, we executed an amendment to the lease for our EMS facility in Mt. Laurel, New Jersey, which extended the term of the existing lease for a period of 120 months commencing on May 1, 2021. At the effective date of this modification, we recorded an increase in our ROU assets and operating lease liabilities of approximately $2,051.