Note 7 - Leases

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Leases Disclosure [Text Block]

7. 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 December 31, 2020 and 2019, operating lease ROU assets totaled $3.7 million and $2.9 million, respectively. As of December 31, 2020 and 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):

	Year Ended December 31,
	2020		2019
Lease costs:
Operating lease costs	$	1,488	$	1,509
Other		300		465
Total lease costs	$	1,788	$	1,974

	Year Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,526	$	1,364
ROU assets obtained in exchange for new operating lease liabilities (1)	$	2,181	$	3,667

	December 31,
	2020			2019
Weighted-average remaining lease term (in years)		2.7			2.1
Weighted-average discount rate		2.7	%		3.7	%

(1)  For the year ended December 31, 2019, the amount includes $2.3 million for operating leases existing on January 1, 2019, the adoption date of ASU No. 2016-02, Leases (Topic 842).

As of  December 31, 2020, the maturities of the lease liabilities were as follows (in thousands):

2021	$	1,491
2022		993
2023		405
2024		199
2025		139
Total remaining lease payments		3,227
Less: imputed interest		(128	)
Total lease liabilities	$	3,099
Reported as:
Current liabilities	$	1,406
Long-term liabilities	$	1,693

As of  December 31, 2020, the Company had additional operating leases that have not yet commenced with future lease obligations of $4.6 million. The leases will commence in various periods in 2021 with lease terms ranging from less than one year to four years.

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 two years to four years. Some of these leases include options to renew the lease term for up to five years.

For the years ended December 31, 2020 and 2019, income related to lease payments was $1.9 million and $1.8 million, respectively. As of December 31, 2020, future income related to lease payments was as follows (in thousands):

2021	$	2,153
2022		2,073
2023		1,400
2024		553
2025		59
Total	$	6,238