Note 6 - Leases

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Leases Disclosure [Text Block]

6. LEASES

Lessee

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

Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. ROU assets also include any initial direct costs incurred and prepaid lease payments, less lease incentives received. As of September 30, 2019, operating lease ROU assets totaled $3.1 million and operating lease liabilities totaled $2.5 million. The Company recognizes operating lease costs on a straight-line basis over the lease term.

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. 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 percentages):

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Lease costs:
Operating lease costs	$	377	$	1,013
Short-term and other lease costs		102		394
Total lease costs	$	479	$	1,407

	Three Months Ended		Nine Months Ended
	September 30, 2019		September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	299	$	1,026
ROU assets obtained in exchange for operating lease liabilities (1)	$	869	$	3,450

	September 30, 2019
Weighted-average remaining lease term (in years)		2.3
Weighted-average discount rate		3.9	%

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

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

2019 (remaining three months)	$	364
2020		1,241
2021		634
2022		379
2023		22
Total remaining lease payments		2,640
Less: imputed interest		(132	)
Total lease liabilities	$	2,508
Reported as:
Current liabilities	$	1,318
Long-term liabilities	$	1,190

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. These leases have remaining lease terms from two years to five years. Some of these leases include options to renew the lease term for up to five years.

For the three and nine months ended September 30, 2019, income related to lease payments was $0.5 million and $1.3 million, respectively. As of  September 30, 2019, future income related to lease payments was as follows (in thousands):

2019 (remaining three months)	$	279
2020		1,539
2021		1,384
2022		1,136
2023		602
2024 and beyond		597
Total	$	5,537