v3.22.2.2
BALANCE SHEET AND OTHER INFORMATION
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BALANCE SHEET AND OTHER INFORMATION BALANCE SHEET AND OTHER INFORMATION
Restricted cash

The Company considers cash to be restricted when withdrawal or general use is legally restricted. During the nine months ended September 30, 2022, the Company recovered the $0.1 million restricted cash balance outstanding at December 31, 2021, that was held as a guarantee for certain purchasing cards. During the same period, pursuant to a Loan and Security Agreement with Silicon Valley Bank dated June 7, 2021 (see Note 8), the Company issued letters of credit to secure certain operating leases, and the Company is required to maintain a $0.7 million balance with the bank to secure the outstanding letters of credit, of which $0.3 million was issued in February 2022. Due to the nature of the deposit, the balance is classified as restricted cash. Restricted cash is included in the balance for cash, cash equivalents and restricted cash presented in the statements of cash flows.

Inventory
The following table presents detail of inventory balances:
September 30,December 31,
(in thousands)20222021
Inventory:
MedCenter hardware$2,464 $1,201 
Pharmaceuticals3,275 2,150 
Spare parts662 565 
Total inventory$6,401 $3,916 
Pharmaceutical inventory was recognized in pharmacy and hardware cost of products sold at $9.3 million and $5.0 million during the three months ended September 30, 2022 and 2021, respectively, and $26.4 million and $12.2 million during the nine months ended September 30, 2022 and 2021, respectively. MedCenter hardware was recognized in pharmacy and hardware cost of products sold at $0.01 million and $0.1 million during the three months ended September 30, 2022 and 2021, respectively, and $0.2 million and $0.5 million during the nine months ended September 30, 2022 and 2021, respectively.
Prepaid expenses and other current assets

The following table presents prepaid expenses and other current assets balances:
September 30,December 31,
(in thousands)20222021
Prepaid expenses and other current assets:
Prepaid MedCenter inventory$2,204 $1,050 
Prepaid insurance292 509 
Other367 632 
Total prepaid expenses and other current assets$2,863 $2,191 

Property, plant and equipment, net
The following table presents property, plant and equipment balances:
Estimated useful livesSeptember 30,December 31,
(in thousands)20222021
Property, plant and equipment:
MedCenter equipment
8 years
$7,525 $5,875 
IT equipment
1 - 3 years
2,390 2,361 
Leasehold improvementslesser of useful life or term of lease980 880 
General plant and equipment
5 - 8 years
619 603 
Office furniture and equipment
5 - 8 years
538 394 
Vehicles
5 years
54 54 
Construction-in-process481 1,021 
Total historical cost12,587 11,188 
Accumulated depreciation(6,217)(5,496)
Total property, plant and equipment, net$6,370 $5,692 
Depreciation expense of property and equipment was $0.3 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $0.9 million and $0.9 million for the nine months ended September 30, 2022 and 2021, respectively. Depreciation expense included in pharmacy and hardware cost of products sold was $0.03 million and $0.05 million for the three months ended September 30, 2022 and 2021, respectively, and $0.1 million and $0.1 million for the nine months ended September 30, 2022, and 2021, respectively.
Intangible assets, net
The following table presents intangible asset balances:
September 30,December 31,
(in thousands)20222021
Gross intangible assets:
Intellectual property$3,857 $3,857 
Software5,321 4,475 
Website and mobile application583 583 
Total intangible assets9,761 8,915 
Accumulated amortization:
Intellectual property(3,857)(3,857)
Software(3,741)(2,175)
Website and mobile application(583)(583)
Total accumulated amortization(8,181)(6,615)
Total intangible assets, net$1,580 $2,300 
No intangible assets were purchased for the three months ended September 30, 2022. The Company purchased $0.7 million of intangible assets for the three months ended September 30, 2021, and $0.9 million and $1.9 million for the nine months ended September 30, 2022 and 2021, respectively.
Amortization expense of intangible assets was $1.3 million and $0.1 million for the three months ended September 30, 2022 and 2021, respectively, and $1.6 million and $0.2 million for the nine months ended September 30, 2022 and 2021, respectively, and are included in operating expenses.
The Company’s management team is evaluating its existing systems and software. If management were to determine that certain systems or software were to be replaced in order to achieve greater efficiencies, cost savings, or both, the estimated remaining useful life of some IT equipment and intangible assets may be reduced, resulting in higher depreciation and amortization expense, respectively.

Lessee leases
Balance sheet amounts for lease assets and leases liabilities are as follows:
September 30,December 31,
(in thousands)20222021
Assets:
Operating$2,110$2,376
Finance160162
Total assets$2,270$2,538
Liabilities:
Operating:
Current$632 $599 
Long-term1,673 1,947 
Finance:
Current96 83 
Long-term65 80 
Total liabilities$2,466 $2,709 
The following table summarizes the weighted-average remaining lease term and weighted-average discount rate related to the Company’s leases as follows:
September 30,December 31,
(in thousands)20222021
Operating leases:
Weighted-average remaining lease term (years)3.84.2
Weighted-average discount rate6.9 %6.9 %
Finance leases:
Weighted-average remaining lease term (years)1.81.5
Weighted-average discount rate8.6 %8.8 %
Maturities of operating leases liabilities as of September 30, 2022, are as follows, in thousands:
Remaining period in 2022$202 
2023755 
2024617 
2025534 
2026468 
202764 
Thereafter— 
Total lease payments2,640 
Less: present value discount(335)
Total leases$2,305 
Maturities of finance lease liabilities as of September 30, 2022, are as follows, in thousands:
Remaining period in 2022$30 
202391 
202449 
20254 
Thereafter— 
Total finance lease payments174 
Less: imputed interest(13)
Total leases$161 
Operating lease expenses were $0.2 million and $0.3 million for the three months ended September 30, 2022 and 2021, respectively, and $0.7 million and $0.7 million for the nine months ended September 30, 2022 and 2021, respectively.