Note 5 - Leases

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Leases Disclosure [Text Block]

5. 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 five years. Some of these leases include options to renew the lease term for up to two years or on a month-to-month basis. The Company does not have finance lease arrangements.

As of  September 30, 2020 and December 31, 2019, operating lease ROU assets totaled $3.6 million and $2.9 million, respectively. As of September 30, 2020 and December 31, 2019, operating lease liabilities totaled $3.1 million and $2.4 million, respectively. The following tables summarize certain information related to the leases (in thousands, except percentages):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Lease costs:
Operating lease costs	$	364	$	377	$	1,093	$	1,013
Short-term and other lease costs		87		102		235		394
Total lease costs	$	451	$	479	$	1,328	$	1,407

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	394	$	299	$	1,097	$	1,026
ROU assets obtained in exchange for new operating lease liabilities (1)	$	-	$	869	$	1,796	$	3,450

	September 30,			December 31,
	2020			2019
Weighted-average remaining lease term (in years)		2.8			2.1
Weighted-average discount rate		2.9	%		3.7	%

(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, 2020, the maturities of the lease liabilities were as follows (in thousands):

2020 (remaining three months)	$	450
2021		1,333
2022		852
2023		279
2024		192
2025		134
Total remaining lease payments		3,240
Less: imputed interest		(146	)
Total lease liabilities	$	3,094
Reported as:
Current liabilities	$	1,391
Long-term liabilities	$	1,703

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 ranging from less than one year to five years. Some of these leases include options to renew the lease term for up to five years.

For both the three months ended September 30, 2020 and 2019, income related to lease payments was $0.5 million. For both the nine months ended September 30, 2020 and 2019, income related to lease payments was $1.3 million. As of  September 30, 2020, future income related to lease payments was as follows (in thousands):

2020 (remaining three months)	$	589
2021		2,112
2022		2,070
2023		1,478
2024		552
2025		59
Total	$	6,860