Leases

12 Months Ended

Dec. 31, 2021

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 5.9 years as of December 31, 2021, and contains an option to extend the lease for five years.

The components of lease expense are as follows:

	Year Ended December 31,
	2021		2020
Operating lease cost	$	578	$	543
Short-term lease cost		30		9
Total lease cost	$	608	$	552

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

	Year Ended December 31,
	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	522	$	413
Right-of-use-assets obtained in exchange for lease obligations:
Operating leases	$	—	$	3,320

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	2021			2020
Operating lease ROU assets	Other assets	$	3,151		$	3,668

Operating lease liabilities, current	Other current liabilities	$	512		$	493
Operating lease liabilities, long-term	Long-term operating lease liabilities		2,803			3,314
Total operating lease liabilities		$	3,315		$	3,807

Weighted-average remaining lease term		5.9 years			6.9 years
Weighted-average discount rate			10.00	%		10.00	%

Maturities of operating lease liabilities as of December 31, 2021 are as follows:

Fiscal Year	Amount
2022	$	537
2023		551
2024		567
2025		582
2026		598
Thereafter		562
Total operating lease payments		3,397
Less: imputed interest		(82	)
Total operating lease liabilities	$	3,315

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, 2021 and 2020 was as follows:

	Year ended December 31,
	2021		2020
Lease revenue	$	4,966	$	3,601

Equipment under lease is as follows:

	As of December 31,
	2021			2020
Equipment under lease	$	13,488		$	9,343
Less accumulated depreciation		(6,798	)		(5,760	)
Equipment under lease, net	$	6,690		$	3,583

Depreciation expense on equipment under lease amounted to $1,214 and $1,037 for the years ended December 31, 2021 and 2020, respectively.

Maturities of operating lease payments as of December 31, 2021 are as follows:

Fiscal Year	Amount
2022	$	2,146
2023		570
2024		100
2025		35
2026		23
Thereafter		—
Total undiscounted cash flows	$	2,874