Note 5 - Leases

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Lessee, Leases [Text Block]

5. Leases

We have various operating lease agreements for office space, warehouses, manufacturing, and production locations as well as vehicles and other equipment. Our real estate leases have remaining lease terms of one to ten years. We exclude options that are not reasonably certain to be exercised from our lease terms, ranging from one to five years. Our lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms. For certain leases, we receive incentives from our landlords, such as rent abatements, which effectively reduce the total lease payments owed for these leases. Vehicle and other equipment operating leases have terms between one and five years.

Our financing leases relate to research equipment, machinery, and other equipment. 

The table below presents certain information related to the weighted average discount rate and weighted average remaining lease term for the Company’s leases as of December 31, 2021 and 2020:

	2021			2020
Weighted average discount rate - operating leases		3.8	%		3.3	%
Weighted average discount rate - finance leases		6.1	%		5.7	%
Weighted average remaining lease term in years - operating leases		7.8			9.4
Weighted average remaining lease term in years - finance leases		3.0			2.6

The components of lease expense for the years ended December 31, 2021, 2020, and 2019 were as follows:

	Year Ended December 31,
(In thousands)	2021		2020		2019
Operating lease costs	$	2,817	$	839	$	612
Short-term lease costs		1,727		277		51
Total operating lease costs		4,544		1,116		663
Variable lease costs		749		357		299
Total lease expense	$	5,293	$	1,473	$	962

Maturities of our lease liabilities as of December 31, 2021 are as follows: 

(In thousands)	Operating Leases			Financing Leases
2022	$	3,443		$	171
2023		3,151			171
2024		2,883			101
2025		2,497			37
2026		2,006			2
Thereafter		8,364			-
Total lease payments		22,344			482
Less: interest		(3,120	)		(42	)
Total present value of lease liabilities	$	19,224		$	440