Note 6 - Leases

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Leases Disclosure [Text Block]

6. LEASES

Lessee

The Company has operating leases for administrative and sales and marketing offices, manufacturing operations and research and development facilities, employee housing units, and certain equipment. The leases have remaining lease terms from less than a year to 4 years. Some of the leases include options to renew the lease term for up to 5 years or on a month-to-month basis. The Company does not have finance lease arrangements.

As permitted by Topic 842, the Company does not recognize leases with a term of 12 months or less at the commencement date on the Condensed Consolidated Balance Sheets. For those lease arrangements that contain lease and nonlease components, the Company has elected the practical expedient to combine them as single lease components. As of June 30, 2019, operating lease ROU assets totaled $2.7 million and operating lease liabilities totaled $2.0 million. The Company recognizes operating lease costs on a straight-line basis over the lease term.

Because the implicit rate in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the remaining lease payments. 

The following tables summarize certain information related to the leases (in thousands, except for years and percentages):

	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Lease costs:
Operating lease costs	$	332	$	637
Short-term lease costs		84		182
Total lease costs	$	416	$	819

	Three Months Ended		Six Months Ended
	June 30, 2019		June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	423	$	727
ROU assets obtained in exchange for operating lease liabilities (1)	$	317	$	2,581

	June 30, 2019
Weighted-average remaining lease term (in years)		2.2
Weighted-average discount rate		4.2	%

(1) For the six months ended June 30, 2019, the amount includes $2.2 million for operating leases existing on January 1, 2019.

As of June 30, 2019, the maturities of the lease liabilities are as follows (in thousands):

2019 (remaining six months)	$	569
2020		954
2021		348
2022		210
2023		57
Total remaining lease payments		2,138
Less: imputed interest		(148	)
Total lease liabilities	$	1,990
Reported as:
Current liabilities	$	1,097
Long-term liabilities	$	893

Lessor 

The Company owns certain office buildings and leases a portion of these properties to third parties under arrangements that are classified as operating leases. The leases have remaining lease terms from less than a year to 5 years. Some of the leases include options to renew the lease term for up to 5 years.

For the three and six months ended June 30, 2019, income related to lease payments was $0.7 million and $0.9 million, respectively. As of  June 30, 2019, future income related to lease payments is as follows (in thousands):

2019 (remaining six months)	$	703
2020		1,105
2021		880
2022		427
2023		91
2024		12
Total income related to lease payments	$	3,218