Note 4 - Leases

12 Months Ended

Dec. 31, 2024

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 4 years. As of December 31, 2024, 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 (total expected use of 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 and are factored into the ROU asset/liability 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.

On December 31, 2024, the Company terminated its long-term lease for its facility in Orlando, FL. The initial expiration date of the lease was January 2033. The removal of the related ROU asset and lease liability created a non-cash gain of $522 thousand. As part of the termination agreement, the Company received a payment of $500 thousand from the lessor. This coupled with the removal of the ROU asset and lease liability, offset by related expenses to settle the lease, resulted in a net gain on lease termination of $685 thousand, recorded as a reduction to cost of products sold in the consolidated statement of operations. The $500 thousand payment received is netted against operating lease operating cash flows below.

Components of lease expense and other information are as follows:

All Amounts in Thousands	Twelve Months Ended December 31, 2024			Twelve Months Ended December 31, 2023
Lease Expense
Operating Lease Cost	$	1,341		$	1,522
Short-term Lease Cost		1,228			1,998
Variable Lease Cost		529			464
Gain on Lease Termination		(685	)		-
Total Operating Lease Cost	$	2,413		$	3,984
Operating Lease – Operating Cash Flows	$	991		$	1,020
New ROU Assets/Liabilities – Operating Leases (non-cash)	$	52		$	325

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

	Period Ended December 31, 2024			Period Ended December 31, 2023
Weighted Average Remaining Lease Term – Operating Leases (in years)		2.84			8.09
Weighted Average Discount Rate – Operating Leases		6.23	%		5.20	%

Future minimum lease payments under non-cancellable leases as of December 31, 2024 were as follows:

All Amounts in Thousands
2025	$	506
2026		442
2027		334
2028		65
2029		-
Thereafter		-
Total future minimum lease payments		1,347
Less imputed interest		(116	)
Total	$	1,231