Note 13 - Leases

3 Months Ended

Mar. 31, 2026

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

13. Leases

The Company leases office space and equipment. The Company determines if a contract is a lease at the inception of the arrangement and reviews all options to extend, terminate, or purchase its right-of-use assets at the inception of the lease and accounts for these options when they are reasonably certain of being exercised.

Leases with an initial term of greater than twelve months are recorded on the consolidated balance sheet. Lease expense is recognized on a straight-line basis over the lease term.

The Company’s lease contracts generally do not provide a readily determinable implicit rate. For these contracts, the estimated incremental borrowing rate is based on information available at the inception of the lease.

Operating lease costs were $0.4 million for each of the three months ended  March 31, 2026 and 2025.  Cash payments for lease liabilities were $0.4 million and $0.3 million for the three months ended   March 31, 2026 and 2025, respectively.

There were noncash right-of-use asset transactions for the three months ended March 31, 2026.  The Company executed a lease renewal which was accounted for as a modification and recognized a noncash increase for the right-of-use asset obtained in exchange for a new operating lease liability of approximately $1.0 million during the three months ended March 31, 2026. 

The maturity of operating lease liabilities is presented in the following table (unaudited, in thousands):

	As of March 31, 2026
2026	$	696
2027		614
2028		304
2029		247
2030 and thereafter		337
Total lease payments		2,198
Less imputed interest		322
Present value of lease liabilities	$	1,876

Additional information relating to the Company’s operating leases follows (unaudited):

	As of March 31, 2026
Weighted average remaining lease term (years)		3.6
Weighted average discount rate		9.5	%