Note 9 - Leases

6 Months Ended

Jun. 30, 2024

Notes to Financial Statements

Lessee, Operating Leases and Finance Leases [Text Block]

(9)      Leases

The Company leases office and warehouse space under operating leases. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments under the lease. Operating lease, right-of-use assets, and liabilities are recognized at the lease commencement date based on the present value of lease payments over the reasonably certain lease term. The implicit rates with the Company’s operating leases are generally not determinable and the Company uses its incremental borrowing rate at the lease commencement date to determine the present value of its lease payments. The determination of the Company’s incremental borrowing rate requires judgement. The company determines its incremental borrowing rate for each lease using its then-current borrowing rate. Certain of the Company’s leases include options to extend or terminate the lease. The Company establishes the number of renewal options periods used in determining the operating lease term based upon its assessment at the inception of the operating lease. The option to renew the lease may be automatic, at the option of the Company, or mutually agreed to between the landlord and the Company. Once the facility lease term has begun, the present value of the aggregate future minimum lease payments is recorded as a right-of-use asset. Lease expense is recognized on a straight-line basis over the term of the lease.

	Six Months Ended June 30,
	2024			2023
Operating lease costs	$	143,554		$	150,732
Short-term operating lease costs		4,658			3,600
Financing lease expense:
Amortization of right-of-use assets		1,523			4,550
Interest on lease liabilities		74			270
Total financing lease expense		1,597			4,820
Total lease expense	$	149,809		$	159,152
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—		$	—
Right-of-use assets obtained in exchange for new financing lease liabilities	$	—		$	—
Weighted-average remaining lease term (years) - operating leases		10.6			11.6
Weighted-average remaining lease term (years) - financing leases		0.4			1.4
Weighted-average discount rate - operating leases		6.75	%		6.75	%
Weighted-average discount rate - financing leases		6.75	%		6.75	%

The future minimum payments under these operating lease agreements are as follows:

	Operating Leases			Financing Leases
2024 (excluding the six-months ended June 30, 2024)	$	143,554		$	1,331
2025		287,108			—
2026		287,108			—
2027		287,108			—
2028		287,108			—
Thereafter		1,738,084			—
Total minimum lease obligations		3,030,070			1,331
Less-amounts representing interest		(867,008	)		(22	)
Present value of minimum lease obligations		2,163,062			1,309
Current maturities		(145,550	)		(1,309	)
Lease obligations, net of current maturities	$	2,017,512		$	—