Note 8 - Leases

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(8)  LEASES 

As discussed in “Note (2) Summary of Significant Accounting Policies; (k) Leases,” we account for our leases in accordance with ASC 842. We lease our offices, warehouse facilities and certain equipment under non-cancellable operating leases that expire at various dates through 2032. Total operating lease and short-term lease costs for the years ended December 31, 2024 and 2023, respectively, were as follows: 

	Years Ended December 31,
(in thousands)	2024		2023
Operating lease cost	$	1,878	$	1,590
Short-term lease cost	$	14	$	13

The following is additional information about our leases:

	December 31,
	2024				2023
Range of remaining lease terms (in years)		0.5	to	7.2		0.3	to	7.3
Weighted average remaining lease term (in years)			5.8				4.3
Weighted average discount rate			6.6%				4.6%

Maturities of lease liabilities at December 31, 2024 were as follows:

(in thousands)
2025	$	2,576
2026		2,394
2027		2,222
2028		1,655
2029		1,541
Thereafter		2,623
Total lease payments	$	13,011
Less imputed interest		(2,001	)
Total present value of lease liabilities	$	11,010

Cash Flow Information

Total amortization of ROU assets for the years ended December 31, 2024 and 2023 was $1.5 million and $1.6 million, respectively.

Lease Modifications and Additions

Supplemental cash flow information (non-cash increases to operating lease liabilities and ROU assets) was $5.7 million and $0.8 million for the years ended December 31, 2024 and 2023, respectively. 

As disclosed in “Note (3) Acquisition,” on March 12, 2024, we acquired the stock of Alfamation™, and as such, we assumed several leases. In addition, we also entered into the Lease Agreement for the seller-owned facility where Alfamation™ has its principal operations. The leased premises include warehouse and office space totaling approximately 52 thousand square feet. The impact of the assumption and execution of these leases was a non-cash increase in our ROU assets and operating lease liabilities of approximately $1.7 million at the date of the acquisition.

Separately, during the year ended December 31, 2024, we also extended several building leases for certain of our facilities located in the U.S., the Netherlands and Singapore. At the effective dates of these extensions, we recorded non-cash increases in our ROU assets and operating lease liabilities totaling approximately $5.7 million.

During the year ended December 31, 2023, the primary non-cash increases were due to the addition of a new lease in Singapore and the extension of a lease in the Netherlands.