Note 9 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 9 – Commitments and Contingencies 

As of June 30, 2021, the Company leases facilities and certain equipment under lease commitments that expire through June 2026. Future minimum lease commitments for these operating lease commitments are as follows (in thousands):

Twelve Months Ending June 30,	Operating Leases			Finance Leases
2022	$	933		$	36
2023		644			14
2024		613			14
2025		358			5
2026		359			-
Thereafter		-			-
Total future lease commitments		2,907			69
Impact of discounting		(284	)		-
Discounted value of lease obligations	$	2,623		$	69

The following table summarizes the components of our gross operating lease costs incurred during the three and six months ended June 30, 2021 and 2020 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Operating lease expense:
Current lease cost	$	19	$	288	$	33	$	579
Long-term lease cost		241		23		512		43
Total operating lease cost	$	260	$	311	$	545	$	622
Finance lease expense:
Amortization of right-of-use assets	$	22	$	37	$	47	$	95
Interest on lease liabilities		1		5		3		12
Total lease cost	$	23	$	42	$	50	$	107

Our weighted-average lease term and discount rate used during the six months ended June 30, 2021 and 2020 are as follows:

	Six Months Ended June 30,
	2021			2020
Operating
Weighted-average lease term (years)		3.73			4.46
Weighted-average discount rate		6.09	%		6.08	%
Finance
Weighted-average lease term (years)		2.45			1.78
Weighted-average discount rate		5.76	%		6.10	%

Self-Insurance

In June 2015, the Company became self-insured under its Employee Group Medical Plan, and currently is responsible to pay the first $50,000 in medical costs per individual participant for claims incurred in the calendar year up to a maximum of approximately $1.8 million per year in the aggregate based on enrollment. The Company had an accrued liability of approximately $97,000 and $150,000 as of June 30, 2021 and December 31, 2020, respectively, for insurance claims that it anticipates paying in the future related to claims that occurred prior to December 31, 2020. Effective January 1, 2021, the Company moved onto a traditional Employee Group Medical Plan and was no longer self-insured for claims occurring after that date.

Effective April 1, 2015, the Company had entered into a workers’ compensation and employer’s liability insurance policy with a term through March 31, 2018.  Under the terms of the policy, the Company was required to pay premiums in addition to a portion of the cost of any claims made by our employees, up to a maximum of approximately $1.8 million over the term of the policy (an amount that was variable with changes in annualized compensation amounts). As of June 30, 2021, a former employee of ours had an open claim relating to injuries sustained while in the course of employment, and the projected maximum cost of the policy as determined by the insurance carrier included estimated claim costs that have not yet been paid or incurred in connection with the claim. During the year ended December 31, 2017, our insurance carrier formally denied the workers' compensation claim and has moved to close the claim entirely. Per the terms of our insurance policy, through June 30, 2021, we had paid in approximately $1.8 million of the projected maximum plan cost of $1.8 million and had recorded approximately $1.6 million as expense over the term of the policy. In September 2020, the claim was officially denied by the Kansas Division of Workers Compensation Judicial Unit. As of June 30, 2021, no appeal has been made and the Company expects to collect the remaining $189,000 on deposit with the underwriter. Effective  April 1, 2018, we entered into a new workers’ compensation policy with a fixed premium amount determined annually, and therefore are no longer partially self-insured for workers' compensation and employer's liability.