Note 11 - Leases

6 Months Ended

Jun. 30, 2026

Lessee Operating and Finance Leases [Text Block]

NOTE 11 — LEASES

The Company leases certain facilities and equipment. The leases are accounted for under Accounting Standard Update 2016-02, Leases (“Topic 842”), and the Company elected to apply each available practical expedient. The discount rates used for the leases are based on an interest rate yield curve developed for the leases in the Company’s lease portfolio.

The Company has elected to apply the short-term lease exception to all leases of one year or less. During the six months ended June 30, 2026 and 2025, the Company had additional operating leases that resulted in right-of-use assets obtained in exchange for lease obligations in the amount of $3,405 and $0, respectively. During the six months ended June 30, 2026 and 2025, the Company had no additional finance leases associated with property, plant, and equipment.

Some of the Company’s facility leases include options to renew. The exercise of the renewal options is typically at the Company’s discretion. The Company regularly evaluates the renewal options and includes them in the lease term when the Company is reasonably certain to exercise them.

During 2026, the Company executed a lease amendment that extended the term of the Industrial Solutions facility lease and increased the amount of square footage leased. These lease provisions were effective June 1, 2026. During 2025, the Company executed a lease amendment that extended the term of the Gearing facility lease and reduced the amount of square footage leased. These lease provisions are effective December 1, 2026.

Quantitative information regarding the Company’s leases is as follows:

	*Three Months Ended June 30,*						*Six Months Ended June 30,*
	*2026*			*2025*			*2026*			*2025*
Components of lease cost
Finance lease cost components:
Amortization of finance lease assets	$	176		$	181		$	352		$	368
Interest on finance lease liabilities		55			75			115			154
Total finance lease costs		231			256			467			522
Operating lease cost components:
Operating lease cost		531			495			1,033			989
Short-term lease cost		18			23			36			23
Variable lease cost (1)		300			78			623			337
Sublease income		(52	)		(51	)		(104	)		(101	)
Total operating lease costs		797			545			1,588			1,248

Total lease cost	$	1,028		$	801		$	2,055		$	1,770

Supplemental cash flow information related to our operating leases is as follows for the six months ended June 30, 2026 and 2025:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases							$	1,671		$	1,322

Weighted-average remaining lease term-finance leases at end of period (in years)								2.3			3.6
Weighted-average remaining lease term-operating leases at end of period (in years)								6.9			6.1
Weighted-average discount rate-finance leases at end of period								5.7	%		6.7	%
Weighted-average discount rate-operating leases at end of period								6.6	%		9.1	%

(1)

Variable lease costs consist primarily of taxes, insurance, utilities, and common area or other maintenance costs for the Company’s leased facilities and equipment.

As of June 30, 2026, future minimum lease payments under finance leases and operating leases were as follows:

	*Finance*			*Operating*
	*Leases*			*Leases*			*Total*
2026	$	642		$	1,664		$	2,306
2027		1,212			2,573			3,785
2028		952			2,832			3,784
2029		526			2,715			3,241
2030		—			2,657			2,657
2031 and thereafter		—			7,003			7,003
Total lease payments		3,332			19,444			22,776
Less—portion representing interest		(302	)		(3,939	)		(4,241	)
Present value of lease obligations		3,030			15,505			18,535
Less—current portion of lease obligations		(1,093	)		(1,876	)		(2,969	)
Long-term portion of lease obligations	$	1,937		$	13,629		$	15,566