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Note 6 - Leases
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Lessee, Operating Leases [Text Block]
6
.  
LEASES
  
The Company leases administrative and sales offices under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes, and utilities. These operating leases expire at various times through
2028.
The Company had
no
leases that were classified as a financing lease as of
December 31, 2019
.
 
Leases with an initial term of
12
months or less are
not
recorded on the Consolidated Balance Sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Long-term operating leases are included in operating lease ROU assets and operating lease liabilities in the Company’s Consolidated Balance Sheet as of
December 31, 2019
.
 
ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Effective
January 1, 2019,
operating lease ROU assets and liabilities are recognized based on the present value of remaining lease payments over the lease term. In determining the present value of lease payments, implicit rate must be used when readily determinable. As the Company’s leases do
not
provide implicit rates, at the date of the Company’s adoption of the new lease standard, the discount rate is calculated using the Company’s incremental borrowing rate determined based on the information available. The operating lease ROU asset also includes any lease payments made and excludes lease incentives or tenant improvement allowance. The Company’s lease terms
may
include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. 
 
Operating lease expense for years ended
December 31, 2019
and
2018
 was
$2.3
 million and 
$2.5
 million, respectively. For the year ended
December 31, 2019,
operating lease cost includes short-term leases of approximately
$0.2
million and variable lease costs of
$0.3
million.
 
Maturity of operating lease liabilities as of
December 31, 2019
, are as follows (in thousands):
 
Year ending December 31,
  
Amount(1)
  
2020
   $
1,914
  
2021
    
1,783
  
2022
    
1,574
  
2023
    
1,355
  
2024
    
1,070
  
2025 and thereafter
    
3,789
  
Total future minimum lease payments
   $
11,485
  
Less: Interest(2)
    
(1,941
 )
Present value of operating lease liabilities(3)
   $
9,544
  
 
 
(
1
)
As of
December 31, 2019
, the total operating lease liability includes
$1.0
million related to an option to extend a lease term that is reasonably certain to be exercised.
 
(
2
)
Calculated using incremental borrowing interest rate for each lease.
 
(
3
)
Includes the current portion of operating lease liabilities of
$1.9
million as of
December 31, 2019
.
 
As of
December 31, 2019
, the weighted average remaining lease term under operating ROU leases was
7.2
years.
 
As of
December 31, 2019
, the weighted average discount rate for operating lease liabilities was approximately
5.25%.
 
ROU assets obtained in exchange for operating lease liabilities during the year ended
December 31, 2019 
were approximately 
$0.3
million.