Note 9 - Leases

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases and Finance Leases [Text Block]

9. Leases

The Company leases its buildings and manufacturing facilities under operating leases. As of December 31, 2024, the Company had real estate leases in Bedford, Massachusetts, Sarasota, Florida, Warsaw, Indiana and Padova, Italy and Sarasota, Florida.

In June 2022, the Company finalized a renewal option to extend the current term for its operating headquarters and manufacturing facility in Bedford through 2027. There are also lease renewal options into 2038.

The Company leases office space in Padova, Italy. The current term of the Padova lease extends to 2032, with a right to terminate at the Company’s option in 2026 without penalty.

The Company had two real estate leases in Sarasota, Florida that it uses for office space and manufacturing and warehouse facilities. In June 2022, the Company extended its current term on these leases through 2027. These leases were sold with the Parcus transaction in March 2025.

The significant assumptions in recognizing the right-of-use asset and lease liability are as follows:

Incremental borrowing rate. The Company derives its incremental borrowing rate from information available at the lease commencement date in determining the present value of lease payments. The incremental borrowing rate represents a collateralized rate of interest the Company would have to pay to borrow over a similar term an amount equal to the lease payments in a similar economic environment. The Company’s lease agreements do not provide implicit rates. As the Company did not have any external borrowings at either the transition or subsequent renewal dates with comparable terms to its lease agreements, the Company estimated its incremental borrowing rate based on its credit quality, line of credit agreement and by comparing interest rates available in the market for similar borrowings, and adjusting this amount based on the impact of collateral over the term of the lease. The weighted average discount rate at December 31, 2024 was 3.5% for operating leases.

Lease term. The lease term begins at the lease commencement date and is determined on that date based on the non-cancelable term of the lease together with periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option, or periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option.

The components of lease expense and other information for continued and discontinued operations are as follows: 

	Years Ended December 31
	2024		2023		2022
Operating lease expense	$	3,333	$	3,320	$	2,839
Short-term lease expense		-		-		17
Variable lease expense		497		425		413
Total lease expense	$	3,830	$	3,745	$	3,269

	Years Ended December 31
	2024			2023
Weighted Average Remaining Lease Term (in years)
Operating leases		13.2			13.9
Weighted Average Discount Rate
Operating leases		3.5	%		3.6	%
Other information
Operating cash flows from operating leases	$	3,267		$	3,239

Future commitments due under these lease agreements as of December 31, 2024 are as follows:

Years ended December 31,	Operating Leases
2025	$	2,783
2026		2,468
2027		2,329
2028		2,329
2029		2,329
Thereafter		20,572
Present value adjustment		(6,878	)
Present value of lease payments		25,932
Less current portion included in accrued expenses and other current liabilities		(1,918	)
Total lease liabilities	$	24,014