Annual report [Section 13 and 15(d), not S-K Item 405]

Leases

v3.25.0.1
Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
As Lessee:
The Company has historically entered into a number of lease agreements under which the Company is the lessee for equipment and office leases.
The components of the Company’s operating lease costs consisted of the following (in thousands):
Years Ended December 31,
2024 2023
Operating lease cost $ 1,910  $ 1,504 
Variable lease cost 359  336 
Total lease cost $ 2,269  $ 1,840 
Lease costs for the years ended December 31, 2024 and 2023 of approximately $2.3 million and $1.8 million, respectively, were recorded to G&A expenses. Expense related to short-term leases, which are not recorded on the Company's consolidated balance sheets, were not material for the fiscal years ended December 31, 2024, and 2023.
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
Years Ended December 31,
2024 2023
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:
Operating cash flow from operating leases $ 1,863  $ 1,441 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 250  $ 3,356 
Increases to right of use assets resulting from lease modifications:
Operating leases $ —  $ 552 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
2024 2023
Years Years
Weighted average remaining lease term: 5.3 6.2
Rate Rate
Weighted average discount rate: 7.9% 7.7%
Future maturities of lease liabilities as of December 31, 2024 are as follows (in thousands):
Operating Leases
2025 $ 1,905 
2026 1,715 
2027 1,542 
2028 1,495 
2029 1,387 
Thereafter 1,088 
Total undiscounted lease payments 9,132 
Less: Imputed interest (3,094)
Total lease liabilities $ 6,038 
The long-term portion of the lease liabilities included in the amounts above is $4.6 million with the remainder included in other current liabilities in the Consolidated Balance Sheets.
As Lessor
We lease medical equipment to customers, often in conjunction with arrangements to provide consumable medical products. Certain of our equipment leases are classified as sales-type leases and the remainder are operating leases. The terms of the related contracts, including the proportion of fixed versus variable payments and any options, varies by customer. The Company elected the “combining lease and non-lease components” practical expedient for all qualifying non-lease components.
The components of the Company’s lease revenues consisted of the following (in thousands):
Years Ended December 31,
2024 2023
Net operating lease revenue
 $ 27,843  $ 23,797 
Sales-type lease revenue 717  3,250 
Total lease revenue $ 28,560  $ 27,047 

The components of our net investment in sales-type leases as of December 31, 2024 and 2023 were (in thousands):

2024 2023
Lease receivable $ 1,934  $ 2,583 
Net investment in leases $ 1,934  $ 2,583 

Our net investment in sales-type leases is classified as follows in the accompanying consolidated balance sheets as of December 31, 2024 and 2023 (in thousands):

2024 2023
Accounts receivable, net $ 1,207  $ 1,067 
Other assets 727  1,516 
Total $ 1,934  $ 2,583 

Future maturities of sales-type leases as of December 31, 2024 are as follows (in thousands):
Sales-Type Leases
2025 $ 1,379 
2026 701 
2027 68 
Total undiscounted lease payments 2,148 
Less: Imputed interest (214)
Total lease receivables $ 1,934 
Leases Leases
As Lessee:
The Company has historically entered into a number of lease agreements under which the Company is the lessee for equipment and office leases.
The components of the Company’s operating lease costs consisted of the following (in thousands):
Years Ended December 31,
2024 2023
Operating lease cost $ 1,910  $ 1,504 
Variable lease cost 359  336 
Total lease cost $ 2,269  $ 1,840 
Lease costs for the years ended December 31, 2024 and 2023 of approximately $2.3 million and $1.8 million, respectively, were recorded to G&A expenses. Expense related to short-term leases, which are not recorded on the Company's consolidated balance sheets, were not material for the fiscal years ended December 31, 2024, and 2023.
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
Years Ended December 31,
2024 2023
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:
Operating cash flow from operating leases $ 1,863  $ 1,441 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 250  $ 3,356 
Increases to right of use assets resulting from lease modifications:
Operating leases $ —  $ 552 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
2024 2023
Years Years
Weighted average remaining lease term: 5.3 6.2
Rate Rate
Weighted average discount rate: 7.9% 7.7%
Future maturities of lease liabilities as of December 31, 2024 are as follows (in thousands):
Operating Leases
2025 $ 1,905 
2026 1,715 
2027 1,542 
2028 1,495 
2029 1,387 
Thereafter 1,088 
Total undiscounted lease payments 9,132 
Less: Imputed interest (3,094)
Total lease liabilities $ 6,038 
The long-term portion of the lease liabilities included in the amounts above is $4.6 million with the remainder included in other current liabilities in the Consolidated Balance Sheets.
As Lessor
We lease medical equipment to customers, often in conjunction with arrangements to provide consumable medical products. Certain of our equipment leases are classified as sales-type leases and the remainder are operating leases. The terms of the related contracts, including the proportion of fixed versus variable payments and any options, varies by customer. The Company elected the “combining lease and non-lease components” practical expedient for all qualifying non-lease components.
The components of the Company’s lease revenues consisted of the following (in thousands):
Years Ended December 31,
2024 2023
Net operating lease revenue
 $ 27,843  $ 23,797 
Sales-type lease revenue 717  3,250 
Total lease revenue $ 28,560  $ 27,047 

The components of our net investment in sales-type leases as of December 31, 2024 and 2023 were (in thousands):

2024 2023
Lease receivable $ 1,934  $ 2,583 
Net investment in leases $ 1,934  $ 2,583 

Our net investment in sales-type leases is classified as follows in the accompanying consolidated balance sheets as of December 31, 2024 and 2023 (in thousands):

2024 2023
Accounts receivable, net $ 1,207  $ 1,067 
Other assets 727  1,516 
Total $ 1,934  $ 2,583 

Future maturities of sales-type leases as of December 31, 2024 are as follows (in thousands):
Sales-Type Leases
2025 $ 1,379 
2026 701 
2027 68 
Total undiscounted lease payments 2,148 
Less: Imputed interest (214)
Total lease receivables $ 1,934