Note 9 - Leases

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(9)  LEASES 

As previously discussed in Note 2, we account for our leases in accordance with the guidance in ASC Topic 842. We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases that expire at various dates through 2031. Total operating lease and short-term lease costs for the three months ended March 31, 2024 and 2023, respectively, were as follows: 

	Three Months Ended March 31,
	2024		2023
Operating lease cost	$	451	$	400
Short-term lease cost	$	3	$	3

The following is additional information about our leases as of March 31, 2024:

Range of remaining lease terms (in years)	.5	to	7.1
Weighted average remaining lease term (in years)		4.5
Weighted average discount rate		5.3%

Maturities of lease liabilities as of March 31, 2024 were as follows:

2024	$	1,896
2025		1,644
2026		1,313
2027		1,093
2028		675
Thereafter		869
Total lease payments	$	7,490
Less imputed interest		(829	)
Total	$	6,661

Cash Flow Information

Total amortization of ROU assets for the three months ended March 31, 2024 and 2023 was $403 and $391, respectively.

During the three months ended March 31, 2024 we acquired several auto leases in connection with our acquisition of Alfamation. The acquisition is discussed further in Note 3. We also entered into the Lease Agreement, described in Note 3, for the facility where Alfamation has its principal operations. This facility is owned by the seller. The leased premises include warehouse and office space totaling approximately 51,817 square feet. The yearly lease payment is EUR 260. The impact of the acquisition of these leases was a non-cash increase in our ROU assets and operating lease liabilities of approximately $1,758 at the date of the acquisition.

During the three months ended March 31, 2024 we also extended the lease for the facility for our Environmental Technologies segment’s operation in Singapore. At the effective date of this lease, we recorded a non-cash increase in our ROU assets and operating lease liabilities of approximately $82.

During the three months ended March 31, 2023, we entered into a 25-month lease for a facility for our Environmental Technologies segment’s operation in Germany. At the effective date of this lease, we recorded a non-cash increase in our ROU assets and operating lease liabilities of approximately $90. During this same period, we entered into a 36-month lease for a car for one of the employees of our Process Technologies segment who is based in Europe. At the effective date of this lease, we recorded a non-cash increase in our ROU assets and operating lease liabilities of approximately $30.