Note 8 - Leases

12 Months Ended

Dec. 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.

	2022		2021
Finance lease cost:
Amortization of right-of use assets, included in cost of goods sold	$	97	$	89
Interest on lease liabilities		21		11
Operating lease cost, included in selling, general and administrative expenses:
Fixed leases cost		515		515
Variable lease cost		168		149
Short-term lease cost		85		61
Total lease cost	$	886	$	825
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	21	$	11
Operating cash flows from operating leases	$	515	$	515
Financing cash flows from finance leases	$	104	$	96

As of December 31, 2022, variable lease payments do not depend on a rate or index. As of December 31, 2022, property and equipment, net, includes $0.6 million of finance lease right-of-use-assets, with an original cost of $0.9 million. During 2022, we financed the purchase of $0.4 million of property and equipment in noncash finance lease transactions. During 2021, we financed the purchase of $0.1 million of property and equipment in noncash finance lease transactions.

As of December 31, 2022, we do not believe it is certain that we will exercise any lease 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 December 31, 2022, follows.

	Operating Leases				Finance Leases
Remaining leases terms (in years)		0.8	-	10.2		0.3	-	4.8
Weighted average remaining lease terms (in years)				5.5				4.0
Discount rates		6.3%	-	9.0%		2.8%	-	10.4%
Weighted average discount rate				7.8%				8.2%

As of December 31, 2022, operating leases have maturities extending through 2032. Maturities of lease liabilities as of December 31, 2022, follows (in thousands).

	Operating			Finance
	Leases			Leases
2023	$	528		$	158
2024		429			117
2025		439			102
2026		451			99
2027		232			60
Thereafter		346			-
Total lease payments		2,425			536
Amounts representing interest		(477	)		(86	)
Present value of lease obligations	$	1,948		$	450