Note 6 - Leases

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Lessee, Leases [Text Block]

6. 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 eight 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, 2022 and 2021:

	2022			2021
Weighted average discount rate - operating leases		4.2	%		3.8	%
Weighted average discount rate - finance leases		6.1	%		6.1	%
Weighted average remaining lease term in years - operating leases		7.2			7.8
Weighted average remaining lease term in years - finance leases		2.0			3.0

The components of lease expense for the years ended December 31, 2022, 2021, and 2020 were as follows:

	Year Ended December 31,
(In thousands)	2022		2021		2020
Operating lease costs	$	3,701	$	2,817	$	839
Short-term lease costs		2,141		1,727		277
Total operating lease costs		5,842		4,544		1,116
Variable lease costs		1,104		749		357
Total lease expense	$	6,946	$	5,293	$	1,473

Maturities of our lease liabilities as of December 31, 2022 are as follows: 

(In thousands)	Operating Leases			Financing Leases
2023	$	3,448		$	171
2024		3,089			101
2025		2,649			28
2026		2,267			2
2027		2,242			-
Thereafter		6,927			-
Total lease payments		20,622			302
Less: interest		(2,800	)		(18	)
Total present value of lease liabilities	$	17,822		$	284