Note 7 - Leases

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

NOTE 7.  Leases

The Company has obtained the right of use for office and manufacturing facilities under five operating lease agreements with initial terms exceeding one year. The lease term at the commencement date is determined by considering whether renewal options and termination options are reasonably assured of exercise.

As of  March 31, 2026, the weighted average discount rate for operating leases with initial terms of more than one year was 10.1% and the weighted average remaining term of these leases was 2.9 years. Discount rates were determined using the Company’s marginal rate of borrowing at the time each lease was executed or extended.

The following table summarizes the Company’s undiscounted cash payment obligations for its operating lease liabilities with initial terms of more than 12 months as of  March 31, 2026 (in thousands):

Year Ending December 31,
2026 (nine months remaining)	$	2,425
2027		2,947
2028		3,050
2029		760
Undiscounted total		9,182
Less: imputed interest		(1,214	)
Present value of future minimum payments		7,968
Current portion of operating lease liability		(2,530	)
Operating lease liability, net of current portion	$	5,438

The Company is also required to pay for operating expenses related to the leased space, including common area maintenance, taxes and insurance. The operating expenses are incurred separately and were not included in the present value of lease payments. Operating lease expenses for the three months ended March 31, 2026 and 2025 are summarized as follows (in thousands):

	Three Months Ended March 31,
	2026		2025
Lease cost
Operating lease cost	$	998	$	1,553
Short-term lease cost		12		11
Variable lease cost		365		280
Sublease income		-		(20	)
Total lease cost	$	1,375	$	1,824