Leases

12 Months Ended

Dec. 31, 2023

Note 6. 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 3.9 years as of December 31, 2023, and contains an option to extend the lease for five years. The Company also has an operating lease for office equipment.

The components of lease expense are as follows:


	Year Ended December 31,
	2023		2022
Operating lease cost	$	589	$	579
Short-term lease cost		49		37
Total lease cost	$	638	$	616

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


	Year Ended December 31,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	560	$	537
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	46	$	—

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	2023			2022
Operating lease ROU assets	Other assets	$	2,141		$	2,630

Operating lease liabilities, current	Operating lease liabilities	$	559		$	531
Operating lease liabilities, long-term	Long-term operating lease liabilities		1,750			2,272
Total operating lease liabilities		$	2,309		$	2,803

Weighted-average remaining lease term		3.9 years			4.9 years
Weighted-average discount rate			10.00	%		10.00	%

Maturities of operating lease liabilities as of December 31, 2023 are as follows:


Fiscal Year	Amount
2024		575
2025		591
2026		607
2027		571
2028		3
Total operating lease payments		2,347
Less: imputed interest		(38	)
Total operating lease liabilities	$	2,309

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 five years. Lease revenue for the years ended December 31, 2023 and 2022 was as follows:


	Year ended December 31,
	2023		2022
Lease revenue	$	6,448	$	5,915

Equipment under lease is as follows:


	As of December 31,
	2023			2022
Equipment under lease	$	16,969		$	14,771
Less accumulated depreciation		(9,510	)		(8,455	)
Equipment under lease, net	$	7,459		$	6,316

Depreciation expense on equipment under lease amounted to $2,052 and $1,916 for the years ended December 31, 2023 and 2022, respectively.

Maturities of operating lease payments as of December 31, 2023 are as follows:


Fiscal Year	Amount
2024		1,179
2025		517
2026		167
2027		52
2028		17
Total undiscounted cash flows	$	1,932