Leases

12 Months Ended

Dec. 31, 2020

Note 6. Leases

Lessee Arrangements

The Company has an operating lease for a corporate office. On August 20, 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 6.9 years as of December 31, 2020, and contains an option to extend the lease for five years.

The components of lease expense are as follows:

	Year Ended December 31,
	2020		2019
Operating lease cost	$	543	$	576
Short-term lease cost		9		8
Total lease cost	$	552	$	584

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

	Year Ended December 31,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	413	$	575
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	3,320	$	1,390

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	2020			2019
Operating lease ROU assets	Other assets	$	3,668		$	853

Operating lease liabilities, current	Other current liabilities	$	493		$	555
Operating lease liabilities, long-term	Long-term operating lease liabilities		3,314			333
Total operating lease liabilities		$	3,807		$	888

Weighted-average remaining lease term		6.9 years			1.6 years
Weighted-average discount rate			10.00	%		6.04	%

Maturities of operating lease liabilities as of December 31, 2020 are as follows:

Fiscal Year	Amount
2021	$	522
2022		537
2023		552
2024		567
2025		582
Thereafter		1,160
Total operating lease payments		3,920
Less: imputed interest		(113	)
Total operating lease liabilities	$	3,807

Lessor Arrangements

The Company has operating leases for the LENSAR Laser System, 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, 2020 and 2019 was as follows:

	Year ended December 31,
	2020		2019
Lease revenue	$	3,601	$	4,181

Equipment under lease is as follows:

	As of December 31,
	2020			2019
Equipment under lease	$	9,343		$	6,749
Less accumulated depreciation		(5,760	)		(5,318	)
Equipment under lease, net	$	3,583		$	1,431

Depreciation expense on equipment under lease amounted to $1,037 and $2,252 for the years ended December 31, 2020 and 2019, respectively.

Maturities of operating lease payments as of December 31, 2020 are as follows:

Fiscal Year	Amount
2021	$	4,187
2022		2,274
2023		1,044
2024		—
2025		—
Thereafter		—
Total undiscounted cash flows	$	7,505