Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

LeasesThe Company is a party to certain operating and finance leases for vehicles, office space and storage facilities. The Company’s operating leases consist of office space, as well as storage facilities and finance leases consist of automobiles. The Company’s leases generally have remaining terms of one to 10 years, some of which include options to renew the leases for up to five years. The Company leases space for operations in the United States, Australia, Belgium, France, Japan and Spain. In addition

to the above facility leases, the Company also routinely leases automobiles for certain sales and field service employees under finance leases.

The Company determines if a contract contains a lease at inception. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates the incremental secured borrowing rates corresponding to the maturities of the leases. The Company based the rate estimates on prevailing financial market conditions, credit analysis, and management judgment.

The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the Company’s right-of-use (“ROU”) asset related to the lease. These are amortized through the ROU asset as reductions of expense over the lease term.

Supplemental balance sheet information related to leases was as follows (in thousands):

Leases	Classification	September 30, 2022		December 31, 2021
Assets
Right-of-use assets	Operating lease right-of-use assets	$	13,033	$	14,627
Finance lease	Property and equipment, net	1,791		392
Total leased assets		$	14,824	$	15,019

Liabilities	Classification	September 30, 2022		December 31, 2021
Operating lease liabilities
Operating lease liabilities, current	Operating lease liabilities	$	2,712	$	2,419
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	11,642		13,483
Total Operating lease liabilities		$	14,354	$	15,902
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	786	$	554
Finance lease liabilities, non-current	Other long-term liabilities	685		730
Total Finance lease liabilities		$	1,471	$	1,284

Lease costs during the three and nine months ended September 30, 2022 and 2021 (in thousands) was as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease costs	Classification	2022		2021		2022		2021
Finance lease cost	Amortization expense	$	148	$	103	$	487	$	340
Finance lease cost	Interest for finance lease	$	17	$	12	$	54	$	40
Operating lease cost	Operating lease expense	$	883	$	882	$	2,678	$	2,641

Cash paid for amounts included in the measurement of lease liabilities during the nine months ended September 30, 2022 and 2021 was as follows (in thousands):

		Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities	Classification	2022		2021
Operating cash flow	Finance lease	$	56	$	38
Financing cash flow	Finance lease	$	391	$	314
Operating cash flow	Operating lease	$	1,682	$	2,324

Facility leases

Maturities of facility leases were as follows as of September 30, 2022 (in thousands):

As of September 30, 2022	Amount
Remainder of 2022	$	824
2023	3,344
2024	2,912
2025	2,875
2026	2,970
2027 and thereafter	3,338
Total lease payments	16,263
Less: imputed interest	1,909
Present value of lease liabilities	$	14,354

Vehicle Leases

As of September 30, 2022, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):

As of September 30, 2022	Amount
Remainder of 2022	$	150
2023	542
2024	604
2025	294
Total lease payments	1,590
Less: imputed interest	119
Present value of lease liabilities	$	1,471

Weighted-average remaining lease term and discount rate, as of September 30, 2022, were as follows:

Lease Term and Discount Rate	September 30, 2022
Weighted-average remaining lease term (years)
Operating leases	5.1
Finance leases	2.0
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	6.2	%

Leases

LeasesThe Company is a party to certain operating and finance leases for vehicles, office space and storage facilities. The Company’s operating leases consist of office space, as well as storage facilities and finance leases consist of automobiles. The Company’s leases generally have remaining terms of one to 10 years, some of which include options to renew the leases for up to five years. The Company leases space for operations in the United States, Australia, Belgium, France, Japan and Spain. In addition

to the above facility leases, the Company also routinely leases automobiles for certain sales and field service employees under finance leases.

The Company determines if a contract contains a lease at inception. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates the incremental secured borrowing rates corresponding to the maturities of the leases. The Company based the rate estimates on prevailing financial market conditions, credit analysis, and management judgment.

The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the Company’s right-of-use (“ROU”) asset related to the lease. These are amortized through the ROU asset as reductions of expense over the lease term.

Supplemental balance sheet information related to leases was as follows (in thousands):

Leases	Classification	September 30, 2022		December 31, 2021
Assets
Right-of-use assets	Operating lease right-of-use assets	$	13,033	$	14,627
Finance lease	Property and equipment, net	1,791		392
Total leased assets		$	14,824	$	15,019

Liabilities	Classification	September 30, 2022		December 31, 2021
Operating lease liabilities
Operating lease liabilities, current	Operating lease liabilities	$	2,712	$	2,419
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	11,642		13,483
Total Operating lease liabilities		$	14,354	$	15,902
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	786	$	554
Finance lease liabilities, non-current	Other long-term liabilities	685		730
Total Finance lease liabilities		$	1,471	$	1,284

Lease costs during the three and nine months ended September 30, 2022 and 2021 (in thousands) was as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease costs	Classification	2022		2021		2022		2021
Finance lease cost	Amortization expense	$	148	$	103	$	487	$	340
Finance lease cost	Interest for finance lease	$	17	$	12	$	54	$	40
Operating lease cost	Operating lease expense	$	883	$	882	$	2,678	$	2,641

Cash paid for amounts included in the measurement of lease liabilities during the nine months ended September 30, 2022 and 2021 was as follows (in thousands):

		Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities	Classification	2022		2021
Operating cash flow	Finance lease	$	56	$	38
Financing cash flow	Finance lease	$	391	$	314
Operating cash flow	Operating lease	$	1,682	$	2,324

Facility leases

Maturities of facility leases were as follows as of September 30, 2022 (in thousands):

As of September 30, 2022	Amount
Remainder of 2022	$	824
2023	3,344
2024	2,912
2025	2,875
2026	2,970
2027 and thereafter	3,338
Total lease payments	16,263
Less: imputed interest	1,909
Present value of lease liabilities	$	14,354

Vehicle Leases

As of September 30, 2022, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):

As of September 30, 2022	Amount
Remainder of 2022	$	150
2023	542
2024	604
2025	294
Total lease payments	1,590
Less: imputed interest	119
Present value of lease liabilities	$	1,471

Weighted-average remaining lease term and discount rate, as of September 30, 2022, were as follows:

Lease Term and Discount Rate	September 30, 2022
Weighted-average remaining lease term (years)
Operating leases	5.1
Finance leases	2.0
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	6.2	%

Leases

LeasesThe Company is a party to certain operating and finance leases for vehicles, office space and storage facilities. The Company’s operating leases consist of office space, as well as storage facilities and finance leases consist of automobiles. The Company’s leases generally have remaining terms of one to 10 years, some of which include options to renew the leases for up to five years. The Company leases space for operations in the United States, Australia, Belgium, France, Japan and Spain. In addition

to the above facility leases, the Company also routinely leases automobiles for certain sales and field service employees under finance leases.

The Company determines if a contract contains a lease at inception. Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, the Company estimates the incremental secured borrowing rates corresponding to the maturities of the leases. The Company based the rate estimates on prevailing financial market conditions, credit analysis, and management judgment.

The Company recognizes expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce the Company’s right-of-use (“ROU”) asset related to the lease. These are amortized through the ROU asset as reductions of expense over the lease term.

Supplemental balance sheet information related to leases was as follows (in thousands):

Leases	Classification	September 30, 2022		December 31, 2021
Assets
Right-of-use assets	Operating lease right-of-use assets	$	13,033	$	14,627
Finance lease	Property and equipment, net	1,791		392
Total leased assets		$	14,824	$	15,019

Liabilities	Classification	September 30, 2022		December 31, 2021
Operating lease liabilities
Operating lease liabilities, current	Operating lease liabilities	$	2,712	$	2,419
Operating lease liabilities, non-current	Operating lease liabilities, net of current portion	11,642		13,483
Total Operating lease liabilities		$	14,354	$	15,902
Finance lease liabilities
Finance lease liabilities, current	Accrued liabilities	$	786	$	554
Finance lease liabilities, non-current	Other long-term liabilities	685		730
Total Finance lease liabilities		$	1,471	$	1,284

Lease costs during the three and nine months ended September 30, 2022 and 2021 (in thousands) was as follows:

		Three Months Ended September 30,				Nine Months Ended September 30,
Lease costs	Classification	2022		2021		2022		2021
Finance lease cost	Amortization expense	$	148	$	103	$	487	$	340
Finance lease cost	Interest for finance lease	$	17	$	12	$	54	$	40
Operating lease cost	Operating lease expense	$	883	$	882	$	2,678	$	2,641

Cash paid for amounts included in the measurement of lease liabilities during the nine months ended September 30, 2022 and 2021 was as follows (in thousands):

		Nine Months Ended September 30,
Cash paid for amounts included in the measurement of lease liabilities	Classification	2022		2021
Operating cash flow	Finance lease	$	56	$	38
Financing cash flow	Finance lease	$	391	$	314
Operating cash flow	Operating lease	$	1,682	$	2,324

Facility leases

Maturities of facility leases were as follows as of September 30, 2022 (in thousands):

As of September 30, 2022	Amount
Remainder of 2022	$	824
2023	3,344
2024	2,912
2025	2,875
2026	2,970
2027 and thereafter	3,338
Total lease payments	16,263
Less: imputed interest	1,909
Present value of lease liabilities	$	14,354

Vehicle Leases

As of September 30, 2022, the Company was committed to minimum lease payments for vehicles leased under long-term non-cancelable finance leases as follows (in thousands):

As of September 30, 2022	Amount
Remainder of 2022	$	150
2023	542
2024	604
2025	294
Total lease payments	1,590
Less: imputed interest	119
Present value of lease liabilities	$	1,471

Weighted-average remaining lease term and discount rate, as of September 30, 2022, were as follows:

Lease Term and Discount Rate	September 30, 2022
Weighted-average remaining lease term (years)
Operating leases	5.1
Finance leases	2.0
Weighted-average discount rate
Operating leases	4.8	%
Finance leases	6.2	%