Note 9 - Leases |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes to Financial Statements | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Lessee, Operating Leases [Text Block] |
On September 1, 2020, the Company entered into a -year operating lease for its headquarters building in San Diego, California. The term of that lease was extended until February 28, 2026 and subsequently until September 30, 2026. The agreement provided that the landlord may terminate the lease upon ninety (90) days’ prior written notice to the Company. On April 27, 2026, the landlord exercised its right to terminate the lease for San Diego. The lease terminated on July 26, 2026. The termination did not result in any termination penalties to the Company, and the Company does not have any ongoing obligations under the lease following the termination date. See Subsequent Events.
On June 17, 2026, the Company entered into a -year operating lease for approximately 31,241 square feet at 653 E. 20th Street in Yuma, Arizona for its warehouse and manufacturing operations. Although rent under the lease begins on July 15, 2026, the Company obtained control of the premises on June 25, 2026 upon satisfying the lease’s conditions to possession, and that date is the lease commencement date under ASC 842. Accordingly, the Company recognized an operating lease right-of-use asset and a corresponding lease liability of approximately $0.7 million as of June 30, 2026. The Company separately entered into a lease for the adjacent building at 655 E. 20th Street, which had not been made available to the Company as of June 30, 2026; no right-of-use asset or lease liability has been recognized for that lease as of that date.
The Company has additional factory locations in Broadview, Illinois; Belgrade and Kraljevo in Serbia; and a sales and administration office in Abu Dhabi, United Arab Emirates.
The table below summarizes the Company’s lease related assets and liabilities as of June 30, 2026 and December 31, 2025:
As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate to discount the lease payments to present value. The estimated incremental borrowing rate is derived from information available at the lease commencement date.
The future rental commitments for our operating leases are as follows:
The weighted average remaining lease term and weighted average discount rate for our operating leases as of June 30, 2026 are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||