Note 4 - Leases

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 4 —    Leases

We have operating leases for office, manufacturing and distribution facilities as well as for certain equipment. Our leases have remaining lease terms of 1 year to 8 years. As of December 31, 2023, the Company has not entered into any lease arrangements classified as a finance lease.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities on our consolidated balance sheet. The Company has elected an accounting policy to not recognize short-term leases (one year or less) on the balance sheet. The Company also elected the package of practical expedients which applies to leases that commenced before the adoption date. By electing the package of practical expedients, the Company did not need to reassess the following; whether any existing contracts are or contain leases, the lease classification for any existing leases and initial direct costs for any existing leases.

ROU assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. When the implicit rate of the lease is not provided or cannot be determined, we use our incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise those options. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information is as follows:

All Amounts in Thousands	Twelve Months Ended December 31, 2023		Twelve Months Ended December 31, 2022
Lease Expense
Operating Lease Cost	$	1,522	$	1,481
Short-term Lease Cost		1,998		2,587
Variable Lease Cost		464		502
Total Operating Lease Cost	$	3,984	$	4,570
Operating Lease – Operating Cash Flows	$	1,020	$	860
New ROU Assets – Operating Leases (non-cash)	$	325	$	8,084

Other information about lease amounts recognized in our consolidated financial statements is summarized as follows:

	Period Ended December 31, 2023			Period Ended December 31, 2022
Weighted Average Remaining Lease Term – Operating Leases (years)	8.09			8.98
Weighted Average Discount Rate – Operating Leases		5.20	%		5.06	%

Future minimum lease payments under non-cancellable leases as of December 31, 2023 were as follows:

All Amounts in Thousands
2024	$	1,480
2025		1,445
2026		1,401
2027		1,314
2028		1,074
Thereafter		4,257
Total future minimum lease payments		10,971
Less imputed interest		(2,033	)
Total	$	8,938
Reported as of December 31, 2023
Current operating lease liabilities		1,041
Long-term operating lease liabilities		7,897
Total	$	8,938