Note 8 - Right-of-use Asset and Lease Liability

9 Months Ended

Sep. 30, 2026

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

8.            Right-of-use Asset and Lease Liability:

The Company has entered into operating leases for office and warehouse facilities, which have terms at lease commencement that range from 1 year to 11 years. The Company determines if an arrangement is a lease at inception. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized on a straight-line basis over the lease term.

Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of the lease payments over the lease term. As our leases do not provide a readily determinable implicit rate, we use an incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The operating lease asset also includes any lease payments made and excludes lease incentives. Operating lease expense is recognized on a straight-line basis over the lease term and included in selling, general and administrative expenses.

Information related to the Company’s ROU assets and related lease liabilities are as follows:

	Nine months ended
	September 30,
	2026			2025
Cash paid for operating lease liabilities	$	689		$	615
Right-of-use assets obtained in exchange for new operating lease obligations	$	473		$	1,061
Weighted-average remaining lease term (years)		4.9			4.9
Weighted-average discount rate		6.3	%		6.4	%

Maturities of lease liabilities as of September 30, 2026 were as follows:

2026 (excluding the nine months ended September 30, 2026)	$	176
2027		696
2028		610
2029		404
2030		87
Thereafter		316
		2,289
Less: imputed interest		(427	)
Total lease liabilities	$	1,862
Lease liabilities, current portion		651
Lease liabilities, net of current portion		1,211
Total lease liabilities	$	1,862