Note K - Leases

9 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note K – 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 September 30, 2025, 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 and are recognized in the presentation of the ROU assets and operating lease liabilities 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 are as follows:

	Three Months Ended				Nine Months Ended
All Amounts in Thousands	September 30, 2025		September 30, 2024		September 30, 2025		September 30, 2024
Lease Expense
Operating Lease Cost	$	154	$	374	$	440	$	1,125
Short-term Lease Cost		240		249		782		988
Variable Lease Cost		42		110		142		418
Total Operating Lease Cost	$	436	$	733	$	1,364	$	2,531
Operating Lease – Operating Cash Flows	$	158	$	267	$	449	$	782
New ROU Assets – Operating Leases	$	48	$	-	$	535	$	52

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

	Nine Months Ended
All Amounts in Thousands	September 30, 2025			September 30, 2024
Weighted Average Remaining Lease Term – Operating Leases (in years)		3.08			7.47
Weighted Average Discount Rate – Operating Leases		6.68	%		5.18	%

Future minimum lease payments under non-cancellable leases as of September 30, 2025 were as follows:

All Amounts in Thousands
Remainder of Year 1	$	145
Year 2		569
Year 3		461
Year 4		191
Year 5		124
Thereafter		45
Total future minimum lease payments		1,535
Less imputed interest		(153	)
Total	$	1,382
Reported as of September 30, 2025
Current operating lease liabilities		496
Long-term operating lease liabilities		886
Total	$	1,382