Leases

12 Months Ended

Dec. 31, 2022

Note 5. Leases

Lessee Arrangements

The Company has an operating lease for a corporate office. In August 2020, the Company amended the lease to extend through November 30, 2027 commencing on September 1, 2020. The lease amendment constitutes a modification as it extends the original lease term, which requires evaluation of the remeasurement of the lease liability and corresponding right-of-use-asset. The reassessment resulted in continuing to classify the lease as an operating lease and remeasurement of the lease liability on the basis of the extended lease term and the incremental borrowing rate at

the effective date of modification of 10%. The Company’s operating lease has a remaining lease term of 4.9 years as of December 31, 2022, and contains an option to extend the lease for five years.

The components of lease expense are as follows:


	Year Ended December 31,
	2022		2021
Operating lease cost	$	579	$	578
Short-term lease cost		37		30
Total lease cost	$	616	$	608

Supplemental cash flow information related to leases, including the lease modification, is as follows:


	Year Ended December 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	537	$	522
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	—	$	—

The following table presents the lease balances within the balance sheet, weighted-average remaining lease term, and weighted-average discount rates related to the Company’s operating leases:


		As of December 31,
Operating Leases	Classification	2022			2021
Operating lease ROU assets	Other assets	$	2,630		$	3,151

Operating lease liabilities, current	Operating lease liabilities	$	531		$	512
Operating lease liabilities, long-term	Long-term operating lease liabilities		2,272			2,803
Total operating lease liabilities		$	2,803		$	3,315

Weighted-average remaining lease term		4.9 years			5.9 years
Weighted-average discount rate			10.00	%		10.00	%

Maturities of operating lease liabilities as of December 31, 2022 are as follows:


Fiscal Year	Amount
2023		552
2024		567
2025		582
2026		598
2027		562
Total operating lease payments		2,861
Less: imputed interest		(58	)
Total operating lease liabilities	$	2,803

Lessor Arrangements

The Company has operating leases for LENSAR Laser Systems and ALLY Systems, which occur primarily in the United States. The Company’s leases have remaining lease terms of less than one year to four years. Lease revenue for the years ended December 31, 2022 and 2021 was as follows:


	Year ended December 31,
	2022		2021
Lease revenue	$	5,915	$	4,966

Equipment under lease is as follows:


	As of December 31,
	2022			2021
Equipment under lease	$	14,771		$	13,488
Less accumulated depreciation		(8,455	)		(6,798	)
Equipment under lease, net	$	6,316		$	6,690

Depreciation expense on equipment under lease amounted to $1,916 and $1,214 for the years ended December 31, 2022 and 2021, respectively.

Maturities of operating lease payments as of December 31, 2022 are as follows:


Fiscal Year	Amount
2023		1,520
2024		331
2025		129
2026		23
Total undiscounted cash flows	$	2,003