Note 7 - Leases

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(7)     LEASES

We have operating leases primarily for office space, temporary residences, automobiles and office equipment. Contracts containing assets that we benefit from and control are recognized on our balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognized lease expense for these leases on a straight-line basis over the lease term. We combine the lease and non-lease components for all lease agreements. Certain leases include one or more options to renew with renewal terms that can extend the lease term from one to twenty-six years. The exercise of lease renewal options is at our sole discretion and lease renewal options are not included in our lease terms if they are not reasonably certain to be exercised. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants or options to purchase the leased property. The amount of right of use assets and lease liabilities recorded on our Consolidated Balance Sheet at December 31, 2024 and 2023, respectively, are as follows.

Leases (In Thousands)	Classification	December 31, 2024		December 31, 2023
Assets:
Operating	Other assets	$	11,152	$	7,212
Liabilities:
Current
Operating	Other current liabilities		4,904		1,793
Noncurrent
Operating	Other liabilities		5,914		5,302
Total lease liabilities		$	10,818	$	7,095

Future payments to be made on our operating lease liabilities at December 31, 2024 will be as follows.

Maturity of lease liabilities (In Thousands)	Operating leases
2025	$	5,846
2026		1,898
2027		1,352
2028		987
2029		686
After 2029		1,606
Total lease payments		12,375
Less: Interest		(1,557	)
Present value of lease liabilities	$	10,818

As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.

Lease costs included in general and administrative expense for the years ended  December 31, 2024, 2023 and 2022, respectively, are as follows.

(In Thousands)		Year Ended		Year Ended		Year Ended
Lease costs	Classification	December 31, 2024		December 31, 2023		December 31, 2022
Operating lease costs	General and administrative	$	1,699	$	1,798	$	1,485
Short-term leases	General and administrative		2,587		2,496		3,088
Variable lease costs	General and administrative		381		648		494
Net lease cost		$	4,667	$	4,942	$	5,067

Our weighted average remaining lease term and weighted average discount rate at December 31, 2024 is as follows.

Lease term and discount rate	December 31, 2024
Weighted average remaining lease term in years		2.0
Weighted average discount rate		7.69	%

The cash paid for operating leases included in operating cash flows and in the measurement of lease liabilities for the years ended  December 31, 2024, 2023 and 2022 was $3.5 million, $3.8 million and $2.4 million, respectively. Right of use assets obtained in exchange for operating lease obligations were $6.7 million, $3.1 million and $5.0 million, for the years ended  December 31, 2024, 2023 and 2022, respectively.