v3.25.1
LEASES
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
LEASES LEASES
Lessee-type leases

The Company leases real estate, computer hardware, and vehicles for use in its operations under both operating and finance leases. The Company’s leases have remaining lease terms ranging from one to seven years. Most of these leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at the Company’s election for specified periods of time. Some leases require the Company to pay taxes, insurance, and maintenance expenses associated with the leased assets. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental disclosure related to operating and finance leases included on our consolidated balance sheets is set forth as follows:

December 31,
(in thousands)Classification on Consolidated Balance Sheets20242023
Noncurrent assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$8,412 $9,367 
Finance lease right-of-use assetsProperty and equipment, net23127
Total$8,435 $9,494 
Current liabilities:
Operating lease liabilitiesCurrent portion of operating lease liabilities$1,431 $1,446 
Finance lease liabilitiesAccrued liabilities23 106 
Noncurrent liabilities:
Operating lease liabilitiesNoncurrent portion of operating lease liabilities8,278 9,446 
Finance lease liabilitiesOther noncurrent liabilities— 21 
Total$9,732 $11,019 
The following table sets forth operating and finance lease cost for the years ended December 31, 2024 and 2023:

For the Year Ended December 31,
(in thousands)Classification on Statement of Operations20242023
Operating lease costSelling, general, and administrative expenses$2,432 $4,120 
Finance lease cost:
Amortization of leased assetsDepreciation and amortization$125 $241 
Interest on lease liabilitiesInterest expense6 9 
Total finance lease cost$131 $250 

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:

December 31,
20242023
Weighted average remaining lease term:
Operating leases6.5 years7.1 years
Finance leases0.3 years1.1 years
Weighted average discount rate:
Operating leases8.0 %8.0 %
Finance leases5.1 %5.6 %

The following table sets forth the future minimum lease payments under operating and finance leases subsequent to December 31, 2024:

(in thousands)Operating Leases Finance Leases
2025$2,181 $23 
20261,912 —
20271,934 —
20281,771 —
20291,524 —
Thereafter3,280 —
Total minimum lease payments$12,602 $23 
Interest(2,893)— 
Total$9,709 $23 

Lessor-type leases

The Company entered into a long-term contract with a customer on August 1, 2023, which included certain hardware devices, on-site installation, maintenance, and connectivity services. The Company determined that this contract is a lease, and it is a lessor, under this contract. Ownership of the hardware devices component of the contract transfers to the lessee at the end of the 36-month lease for no additional consideration and the lease was therefore determined to be a sales-type lease. The hardware devices have no guaranteed or unguaranteed residual value, nor does the lease contain any variable consideration. The lease does not have any extension options. The remaining components of the transaction were determined to be non-lease components and are accounted for separately under the revenue recognition accounting guidance.

The components of lease income for the years ended December 31, 2024 and 2023 are set forth as follows:

For the Year Ended December 31,
(in thousands)20242023
Selling profit$1,380 $2,640 
Interest income (1)
$89 $40 
(1) Interest income is included in the Company’s consolidated statement of operations in “interest income”.

The following table sets forth the Company’s future minimum rental receipts for this lease as of December 31, 2024, the present value of which is included in “accounts receivable, net” in the Company’s consolidated balance sheet as of December 31, 2024:

(in thousands)December 31, 2024
2025$1,505 
20261,304 
202716 
Total future minimum receipts$2,825 
Less: unearned interest income(203)
Net investment in sales-type lease$2,622 
LEASES LEASES
Lessee-type leases

The Company leases real estate, computer hardware, and vehicles for use in its operations under both operating and finance leases. The Company’s leases have remaining lease terms ranging from one to seven years. Most of these leases are non-cancelable and typically have a defined initial lease term, and some provide options to renew at the Company’s election for specified periods of time. Some leases require the Company to pay taxes, insurance, and maintenance expenses associated with the leased assets. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Supplemental disclosure related to operating and finance leases included on our consolidated balance sheets is set forth as follows:

December 31,
(in thousands)Classification on Consolidated Balance Sheets20242023
Noncurrent assets:
Operating lease right-of-use assetsOperating lease right-of-use assets$8,412 $9,367 
Finance lease right-of-use assetsProperty and equipment, net23127
Total$8,435 $9,494 
Current liabilities:
Operating lease liabilitiesCurrent portion of operating lease liabilities$1,431 $1,446 
Finance lease liabilitiesAccrued liabilities23 106 
Noncurrent liabilities:
Operating lease liabilitiesNoncurrent portion of operating lease liabilities8,278 9,446 
Finance lease liabilitiesOther noncurrent liabilities— 21 
Total$9,732 $11,019 
The following table sets forth operating and finance lease cost for the years ended December 31, 2024 and 2023:

For the Year Ended December 31,
(in thousands)Classification on Statement of Operations20242023
Operating lease costSelling, general, and administrative expenses$2,432 $4,120 
Finance lease cost:
Amortization of leased assetsDepreciation and amortization$125 $241 
Interest on lease liabilitiesInterest expense6 9 
Total finance lease cost$131 $250 

The weighted-average remaining lease term and the weighted-average discount rate of our leases were as follows:

December 31,
20242023
Weighted average remaining lease term:
Operating leases6.5 years7.1 years
Finance leases0.3 years1.1 years
Weighted average discount rate:
Operating leases8.0 %8.0 %
Finance leases5.1 %5.6 %

The following table sets forth the future minimum lease payments under operating and finance leases subsequent to December 31, 2024:

(in thousands)Operating Leases Finance Leases
2025$2,181 $23 
20261,912 —
20271,934 —
20281,771 —
20291,524 —
Thereafter3,280 —
Total minimum lease payments$12,602 $23 
Interest(2,893)— 
Total$9,709 $23 

Lessor-type leases

The Company entered into a long-term contract with a customer on August 1, 2023, which included certain hardware devices, on-site installation, maintenance, and connectivity services. The Company determined that this contract is a lease, and it is a lessor, under this contract. Ownership of the hardware devices component of the contract transfers to the lessee at the end of the 36-month lease for no additional consideration and the lease was therefore determined to be a sales-type lease. The hardware devices have no guaranteed or unguaranteed residual value, nor does the lease contain any variable consideration. The lease does not have any extension options. The remaining components of the transaction were determined to be non-lease components and are accounted for separately under the revenue recognition accounting guidance.

The components of lease income for the years ended December 31, 2024 and 2023 are set forth as follows:

For the Year Ended December 31,
(in thousands)20242023
Selling profit$1,380 $2,640 
Interest income (1)
$89 $40 
(1) Interest income is included in the Company’s consolidated statement of operations in “interest income”.

The following table sets forth the Company’s future minimum rental receipts for this lease as of December 31, 2024, the present value of which is included in “accounts receivable, net” in the Company’s consolidated balance sheet as of December 31, 2024:

(in thousands)December 31, 2024
2025$1,505 
20261,304 
202716 
Total future minimum receipts$2,825 
Less: unearned interest income(203)
Net investment in sales-type lease$2,622