Note K - Leases

6 Months Ended

Jun. 30, 2026

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 5 years. As of June 30, 2026, 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. Variable lease costs include payment for taxes and common area maintenance charges.

Components of lease expense and other information is as follows:

	Three Months Ended				Six Months Ended
All Amounts in Thousands	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Lease Expense
Operating Lease Cost	$	167	$	153	$	334	$	286
Short-term Lease Cost		178		314		326		542
Variable Lease Cost		63		58		105		100
Total Operating Lease Cost	$	408	$	525	$	765	$	928
Operating Lease – Operating Cash Flows	$	165	$	155	$	337	$	291
New ROU Assets – Operating Leases	$	--	$	487	$	246	$	487

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

	Period Ended
All Amounts in Thousands	June 30, 2026			June 30, 2025
Weighted Average Remaining Lease Term – Operating Leases (in years)		2.59			3.20
Weighted Average Discount Rate – Operating Leases		6.81	%		6.61	%

Future minimum lease payments under non-cancellable leases as of June 30, 2026 were as follows:

All Amounts in Thousands
Year 1	$	351
Year 2		583
Year 3		217
Year 4		150
Year 5		70
Thereafter		8
Total future minimum lease payments		1,379
Less imputed interest		(118	)
Total	$	1,261
Reported as of June 30, 2026
Current operating lease liabilities		625
Long-term operating lease liabilities		636
Total	$	1,261