InfuSystem Holdings, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 10 - Leases

Note 10 - Leases

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

10.

Leases

The Company has historically entered into a number of lease agreements under which the Company is the lessee for equipment and office leases. During the year ended

December 31, 2019,

the Company entered into

four

leases for additional office and warehouse space and

four

leases for equipment.

The components of lease costs consisted of the following as of

December 31 (

in thousands):

	2019
Operating lease cost	$	1,948
Variable lease cost		291
Total lease cost	$	2,239

Lease costs for the year ended

December 31, 2019

of approximately

$1.2

million and

$1.0

million, were recorded to G&A expenses and cost of revenues, respectively.

Operating lease expense for the period ended

December 31, 2018

was

$1.5

million.

Amounts reported in the condensed consolidated balance sheet as of

December 31, 2019

for the Company’s operating leases were as follows (in thousands):

	2019
Operating lease ROU assets	$	5,733

Current operating lease liabilities (included in other current liabilities)	$	1,411
Operating lease liabilities, net of current portion		4,644
Total operating lease liabilities	$	6,055

Supplemental cash flow information and non-cash activity related to the Company’s leases was as follows (in thousands):

	2019
Cash paid for amounts included in the measurement of lease liabilities and ROU assets:
Operating cash flow from operating leases	$	1,610

ROU assets obtained in exchange for lease obligations:
Operating leases	$	4,545

Reductions to ROU assets resulting from reductions to lease obligations:
Operating leases	$	22

Weighted average remaining lease terms and discount rates for the Company’s leases as of

December 31, 2019

are as follows:

	Years
Weighted average remaining lease term:
Operating leases		7.4

	Rate
Weighted average discount rate:
Operating leases		7.7	%

Future maturities of lease liabilities as of

December 31, 2019

are as follows (in thousands):

	Operating Leases
2020	$	1,532
2021		1,010
2022		947
2023		924
2024		947
Thereafter		3,166
Total undiscounted lease payments		8,526
Less: Imputed interest		(2,471	)
Total lease liabilities	$	6,055

Future maturities of lease liabilities as of

December 31, 2018

were as follows (in thousands):

	Capital Leases			Operating Leases		Total
2019	$	33		$	1,745	$	1,778
2020		-			1,347		1,347
2021		-			726		726
2022		-			624		624
2023		-			636		636
Thereafter		-			3,071		3,071
Total required payments	$	33		$	8,149	$	8,182
Less amounts representing interest (3.5%)		-
Present value of minimum lease payments		33
Less current maturities		(33	)
Long-term capital lease liability	$	-