Note 4 - Leases

6 Months Ended

Jun. 30, 2026

4. LEASES

The Company leases administrative and sales offices and certain equipment under non-cancellable operating leases, which contain various renewal or termination options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various dates through 2031. The Company had no leases that were classified as a financing lease as of June 30, 2026, and December 31, 2025.

Lease expense was comprised of the following (in thousands):

	*Three Months Ended June 30,*				*Six Months Ended June 30,*
	*2026*		*2025*		*2026*		*2025*
Operating lease expense	$	489	$	435	$	978	$	849
Short-term lease and variable lease expense (1)		183		193		355		400
Total lease expense	$	672	$	628	$	1,333	$	1,249

(1)

Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets, and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease expense for the periods presented primarily included common area maintenance charges.

Supplemental information related to operating leases were as follows:

	*June 30,*			*December 31,*
	*2026*			*2025*
Weighted average remaining lease term under operating leases (in years)		2.8			3.2
Weighted average discount rate for operating lease liabilities		6.2	%		6.2	%

Maturities of operating lease liabilities as of June 30, 2026, were as follows (in thousands):

Year Ending December 31,	*Amount*
2026 (remaining six months)	$	1,145
2027		2,224
2028		1,387
2029		354
2030		283
2031		101
Total future minimum lease payments		5,494
Less: Interest (1)		(456	)
Present value of future minimum lease payments under operating lease liabilities	$	5,038
Reported as:
Operating lease liabilities – current	$	2,089
Operating lease liabilities – non-current		2,949
Total operating lease liabilities	$	5,038

(1)

Calculated using incremental borrowing interest rate for each lease.