Leases

Lessee:

The following information pertains to those operating lease agreements where the Company is the lessee.

February 1, 2017,

the Company entered into a sublease agreement (the “Sublease”) for approximately

12,400

square feet of building space for the relocation of the Company's corporate headquarters to Englewood, Colorado (the “Sublease Premises”), which was effective as of

January 26, 2017.

The lease term commenced on

June 1, 2017

and will terminate in

May 2021.

The Company relocated its corporate headquarters from Sunnyvale, California to Englewood, Colorado in

June 2017.

The monthly base rent under the Sublease is equal to

$20.50

per rentable square foot of the Sublease Premises during the

first

year. The monthly base rent is equal to

$21.12

and

$21.75

per rentable square foot during the

second

and

third

years, respectively. In connection with the execution of the Sublease, the Company also agreed to pay a security deposit of approximately

$22,000.

The Company was also provided an allowance of approximately

$88,000

for certain tenant improvements relating to the engineering, design and construction of the Sublease Premises which has been reimbursed.

September 2018,

the Company entered into a

-month noncancelable operating lease agreement for office equipment. The lease commenced on

September 20, 2018.

The monthly lease payment is approximately

$3,000.

After the adoption of ASU

842

– Leases on

January 1, 2019,

operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date the Company takes possession of the property. At lease inception, the Company determines the lease term by assuming the exercise of those renewal options that are reasonably assured. The lease term is used to determine whether a lease is financing or operating and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Leases with an initial term of

months or less are

not

recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term.

The following table reflects the Company's lease assets and lease liabilities at

December 31, 2020

and

2019.

(in thousands):

	December 31,		December 31,
	2020		2019

Assets:
Operating lease right-of-use assets	$	130	$	395

Liabilities:
Current operating lease liabilities	$	132	$	268
Noncurrent operating lease liabilities		-		132
	$	132	$	400

The operating lease right-of-use assets are included in other assets on the consolidated balance sheets. The operating lease liabilities are included in accrued liabilities and other noncurrent liabilities on the consolidated balance sheets.

The operating lease expense for the years ended

December 31, 2020

and

2019

was

$300,000

and

$301,000,

respectively.

As of

December 31, 2020,

the maturity of operating lease liabilities was as follows (in thousands):

Year Ending December 31,
2021	$	137
Total lease payments		137
Less: Amount representing interest		(5	)
Present value of lease liabilities	$	132

The weighted average remaining lease term was approximately

months as of

December 31, 2020.

The weighted average discount rate for the year ended

December 31, 2020

was

12.5%.

Lessor:

The following information pertains to those operating lease agreements where the Company is the lessor.

As of

December 31, 2020,

minimum future rentals from customers on non-cancellable operating leases of Viveve Systems are as follows (in thousands):

Year Ending December 31,
2021	$	345
Thereafter		-
Total	$	345

As of

December 31, 2020,

the Company included rental program equipment related to these operating leases agreements with a net value of

$841,000

in property and equipment, net. The depreciation expense for rental program equipment for the years ended

December 31, 2020

and

2019

$462,000

and

$121,000,

respectively.