Annual report pursuant to Section 13 and 15(d)

Leases

v3.24.1.u1
Leases
 12 Months Ended
Dec. 31, 2023
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,
2023 2022 2021
Operating lease cost $ 1,504  $ 1,333  $ 1,316 
Variable lease cost 336  301  243 
Total lease cost $ 1,840  $ 1,634  $ 1,559 
Lease costs for the year ended December 31, 2023 of approximately $1.8 million were recorded to G&A expenses. Lease costs for the year ended December 31, 2022 of approximately $1.6 million were recorded to G&A expenses. Lease costs for the year ended December 31, 2021 of approximately $1.5 million and $0.1 million, were recorded to G&A expenses and cost of revenues, respectively. Expense related to short-term leases, which are not recorded on the Consolidated Balance Sheets, was not material for the fiscal years ended December 31, 2023, 2022 and 2021.
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
Years Ended December 31,
2023 2022 2021
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:
Operating cash flow from operating leases $ 1,441  $ 1,241  $ 1,271 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 3,356  $ 18  $ 926 
Increases to right of use assets resulting from lease modifications:
Operating leases $ 552  $ 1,050  $ — 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
2023 2022
Years Years
Weighted average remaining lease term: 6.2 6.7
Rate Rate
Weighted average discount rate: 7.7% 7.1%
Future maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Operating Leases
2024 $ 1,796 
2025 1,837 
2026 1,654 
2027 1,478 
2028 1,429 
Thereafter 2,424 
Total undiscounted lease payments 10,618 
Less: Imputed interest (3,345)
Total lease liabilities $ 7,273 
The long-term portion of the lease liabilities included in the amounts above is $5.8 million with the remainder included in other current liabilities in the Consolidated Balance Sheet.
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,
2023 2022 2021
Net operating lease revenue
 $ 23,797  $ 24,413  $ 21,678 
Sales-type lease revenue 3,250  72  — 
Total lease revenue $ 27,047  $ 24,485  $ 21,678 

The components of our net investment in sales-type leases as of December 31, 2023 and 2022 were (in thousands):

2023 2022
Lease receivable $ 2,583  $ 45 
Net investment in leases $ 2,583  $ 45 

Our net investment in sales-type leases is classified as follows in the accompanying consolidated balance sheets as of December 31, 2023 and 2022 (in thousands):
2023 2022
Accounts receivable, net $ 1,067  $ 45 
Other assets 1,516  — 
Total $ 2,583  $ 45 

Future maturities of sales-type leases as of December 31, 2023 are as follows (in thousands):
Sales-Type Leases
2024 $ 1,238 
2025 1,217 
2026 539 
Total undiscounted lease payments 2,994 
Less: Imputed interest (411)
Total lease receivables $ 2,583 
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,
2023 2022 2021
Operating lease cost $ 1,504  $ 1,333  $ 1,316 
Variable lease cost 336  301  243 
Total lease cost $ 1,840  $ 1,634  $ 1,559 
Lease costs for the year ended December 31, 2023 of approximately $1.8 million were recorded to G&A expenses. Lease costs for the year ended December 31, 2022 of approximately $1.6 million were recorded to G&A expenses. Lease costs for the year ended December 31, 2021 of approximately $1.5 million and $0.1 million, were recorded to G&A expenses and cost of revenues, respectively. Expense related to short-term leases, which are not recorded on the Consolidated Balance Sheets, was not material for the fiscal years ended December 31, 2023, 2022 and 2021.
Supplemental cash flow information and non-cash activity related to the Company’s leases are as follows (in thousands):
Years Ended December 31,
2023 2022 2021
Cash paid for amounts included in the measurement of lease liabilities and right of use assets:
Operating cash flow from operating leases $ 1,441  $ 1,241  $ 1,271 
Right of use assets obtained in exchange for lease obligations:
Operating leases $ 3,356  $ 18  $ 926 
Increases to right of use assets resulting from lease modifications:
Operating leases $ 552  $ 1,050  $ — 
Weighted average remaining lease terms and discount rates for the Company’s operating leases are as follows:
2023 2022
Years Years
Weighted average remaining lease term: 6.2 6.7
Rate Rate
Weighted average discount rate: 7.7% 7.1%
Future maturities of lease liabilities as of December 31, 2023 are as follows (in thousands):
Operating Leases
2024 $ 1,796 
2025 1,837 
2026 1,654 
2027 1,478 
2028 1,429 
Thereafter 2,424 
Total undiscounted lease payments 10,618 
Less: Imputed interest (3,345)
Total lease liabilities $ 7,273 
The long-term portion of the lease liabilities included in the amounts above is $5.8 million with the remainder included in other current liabilities in the Consolidated Balance Sheet.
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,
2023 2022 2021
Net operating lease revenue
 $ 23,797  $ 24,413  $ 21,678 
Sales-type lease revenue 3,250  72  — 
Total lease revenue $ 27,047  $ 24,485  $ 21,678 

The components of our net investment in sales-type leases as of December 31, 2023 and 2022 were (in thousands):

2023 2022
Lease receivable $ 2,583  $ 45 
Net investment in leases $ 2,583  $ 45 

Our net investment in sales-type leases is classified as follows in the accompanying consolidated balance sheets as of December 31, 2023 and 2022 (in thousands):
2023 2022
Accounts receivable, net $ 1,067  $ 45 
Other assets 1,516  — 
Total $ 2,583  $ 45 

Future maturities of sales-type leases as of December 31, 2023 are as follows (in thousands):
Sales-Type Leases
2024 $ 1,238 
2025 1,217 
2026 539 
Total undiscounted lease payments 2,994 
Less: Imputed interest (411)
Total lease receivables $ 2,583