Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contractual Obligations

We had no significant commitments and contractual obligations as of December 31, 2021.

Other Commitments

We have various LOCs outstanding with multiple state agencies which are considered to be immaterial to the consolidated financial statements. The LOCs typically have one to three-year contract requirements and contain automatic renewal terms.

Loss Contingencies

The Company evaluates contingencies on an ongoing basis and establishes loss provisions for matters in which losses are probable and the amount of loss can be reasonably estimated. As part of this evaluation, the Company recognized a loss of $0.9 million in the fourth quarter of 2021 related to the minimum remaining contractual obligation for a license and service contract classified as a research and development cost on the Consolidated Statement of Operations.

This contract was originally intended to provide Spok Go with a source for electronic health record ("EHR") integration and enable the application to display content that was not previously available from all EHR's through an application programming interface. To date, we have not enhanced Spok Go such that it can make use of these integration licenses. New standards require that EHR's support the seamless and secure access, exchange, and use of information by third parties. With the change in standards and the ongoing iteration of internal development plans, we believe it is more likely than not that future Spok Go enhancements will make use of direct EHR access under these new standards as opposed to the use of a third party. Thus, as of December 31, 2021, it was more likely than not that we would be unable to realize any benefits from the remaining $0.9 million contractual obligation under this contract which extends through late 2023.

Legal Contingencies

We are involved, from time to time, in lawsuits arising in the normal course of business. We believe the potential outcomes from these lawsuits will not have a material adverse impact on our financial position or statement of operations.

Operating Leases

We have operating leases for office and transmitter locations. Substantially all of these leases have lease terms ranging from one month to five years. We continue to review our office and transmitter locations, and intend to replace, reduce or consolidate leases, where possible.

Future minimum lease payments under non-cancelable operating leases at December 31, 2021, were as follows:


(Dollars in thousands)	Operating Leases
For the Year Ended December 31,

2022	$	6,217
2023	4,238
2024	2,381
2025	1,489
2026	1,110
Thereafter	189
Total	$	15,624

These leases typically include renewal options and escalation clauses. Where material, we recognize rent expense on a straight-line basis over the lease period.

Total rent expense under operating leases for the years ended December 31, 2021, 2020 and 2019, was approximately $16.8 million, $17.3 million and $17.7 million, respectively.