Note 8 - Leases

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

NOTE 8. LEASES

The components of lease expense and cash flows from leases (in thousands) follow.

	Three Months Ended March 31,
	2022		2021
Finance lease cost:
Amortization of right-of use assets, included in cost of goods sold	$	20	$	21
Interest on lease liabilities		2		3
Operating lease cost, included in selling, general and administrative expenses:
Fixed leases cost		129		129
Variable lease cost		46		38
Short-term lease cost		7		-
Total lease cost	$	204	$	191
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	2	$	4
Operating cash flows from operating leases	$	129	$	129
Financing cash flows from finance leases	$	24	$	26

As of March 31, 2022, variable lease payments do not depend on a rate or index. As of March 31, 2022 and December 31, 2021, property and equipment, net, includes $0.2 million of finance lease right-of-use-assets, with an original cost of $0.5 million. During the three months ended March 31, 2022 and 2021, we financed the purchase of less than $0.1 million of property and equipment in noncash finance lease transactions.

As of March 31, 2022, we do not believe it is certain that we will exercise any renewal options. The remaining terms of our leases and the discount rates used in the calculation of the fair value of our leases as of March 31, 2022, follows.

	Operating Leases				Finance Leases
Remaining leases terms (in years)	1.6	-	10.9		0.2	-	4.6
Weighted average remaining lease terms (in years)			5.9				2.4
Discount rates	6.3%	-	9.0	%	2.8%	-	7.3	%
Weighted average discount rate			7.7	%			4.8	%

Maturities of lease liabilities as of March 31, 2022, follows (in thousands).

	Operating			Finance
	Leases			Leases
2022 (nine months ended December 31, 2022)	$	364		$	67
2023		528			65
2024		429			25
2025		439			10
2026		451			7
Thereafter		578			-
Total lease payments		2,789			174
Amounts representing interest		(599	)		(6	)
Present value of lease obligations	$	2,190		$	168