Note 5 - Leases

9 Months Ended

Sep. 30, 2021

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, 2021 and December 31, 2020, operating lease ROU assets totaled $6.3 million and $3.7 million, respectively. As of September 30, 2021 and December 31, 2020, operating lease liabilities totaled $5.8 million and $3.1 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,
	2021		2020		2021		2020
Lease costs:
Operating lease costs	$	623	$	364	$	1,694	$	1,093
Other		140		87		387		235
Total lease costs	$	763	$	451	$	2,081	$	1,328

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	612	$	394	$	1,622	$	1,097
ROU assets obtained in exchange for new operating lease liabilities	$	793	$	-	$	4,477	$	1,796

	September 30,			December 31,
	2021			2020
Weighted-average remaining lease term (in years)		3.0			2.7
Weighted-average discount rate		2.1	%		2.7	%

As of September 30, 2021, the maturities of the lease liabilities were as follows (in thousands):

2021 (remaining three months)	$	664
2022		2,342
2023		1,505
2024		834
2025		645
Thereafter		8
Total remaining lease payments		5,998
Less: imputed interest		(218	)
Total lease liabilities	$	5,780
Reported as:
Current liabilities	$	2,425
Long-term liabilities	$	3,355

As of September 30, 2021, the Company had operating leases that have not yet commenced with future lease obligations of $4.2 million. The leases are expected to commence in the fourth quarter of 2021 with contractual lease terms ranging from two to five 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 less than one year to five years. Some of these leases include options to renew the lease term for up to five years.

For the three months ended September 30, 2021 and 2020, income related to lease payments was $0.7 million and $0.5 million, respectively. For the nine months ended September 30, 2021 and 2020, income related to lease payments was $1.7 million and $1.3 million, respectively. As of  September 30, 2021, future income related to lease payments was as follows (in thousands):

2021 (remaining three months)	$	594
2022		2,293
2023		1,621
2024		631
2025		110
Thereafter		21
Total	$	5,270