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Leases
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
Lessee
The Company is a lessee in lease agreements for office space, automobiles and certain equipment. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The majority of the Company’s leases are comprised of fixed lease payments, with a small percentage of its real estate leases including lease payments subject to a rate or index, which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under the new guidance, ASC 842 Leases, (“ASC 842”), the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts based on a rate or index (fixed in substance) as stipulated in the lease contract.
None of the Company’s lease agreements contain any material residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements in existence at the date of adoption that were classified as operating leases under the legacy guidance, ASC 840, have been classified as operating leases under ASC 842. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives.
The components of the right-of-use assets and lease liabilities were as follows (in thousands):
Balance Sheet ClassificationMarch 31,
2022		December 31,
2021
Right-of-use assets, netRight-of-use assets, net$7,699 $7,839 
Current operating lease liabilitiesAccrued expenses and other current liabilities$1,759 $1,769 
Non-current operating lease liabilitiesOther long-term liabilities6,956 7,112 
Total operating lease liabilities$8,715 $8,881 
Weighted-average remaining lease term (in years)4.85.0
Weighted-average discount rate9.1 %9.1 %

The components of lease cost were as follows (in thousands):
Three Months Ended March 31,
20222021
Operating lease costs included in operating costs and expenses:
Operating leases$610 $510 

Supplemental cash flow information related to leases was as follows (in thousands):
Three Months Ended March 31,
20222021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows related to operating leases$622 $535 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$79 $148 
The future minimum payments under operating leases were as follows as of March 31, 2022 (in thousands):
2022 (remainder)$1,918 
20232,187 
20242,019 
20251,736 
20261,727 
20271,152 
Thereafter— 
Total minimum operating lease payments$10,739 
Less: amounts representing interest(2,024)
Present value of net minimum operating lease payments8,715 
Less: current portion(1,759)
Long-term portion of operating lease obligations$6,956 

Lessor
Monitoring device leases in which the Company serves as lessor are classified as operating leases. Accordingly, rental devices are carried at historical cost less accumulated depreciation and impairment, if any, and are included in rental assets, net, on the condensed consolidated balance sheets.
Since the lease components meet the criteria for an operating lease under ASC 842, the Company has elected the practical expedient to combine the lease and the non-lease components because the service is the predominant element in the eyes of the customer and the pattern of service delivery is the same for both elements. The Company accounts for the combined component as a single performance obligation under ASC 606, Revenue from Contracts with Customers.
Leases Leases
Lessee
The Company is a lessee in lease agreements for office space, automobiles and certain equipment. Certain of the Company’s leases contain provisions that provide for one or more options to renew at the Company’s sole discretion. The majority of the Company’s leases are comprised of fixed lease payments, with a small percentage of its real estate leases including lease payments subject to a rate or index, which may be variable. Certain real estate leases also include executory costs such as common area maintenance (non-lease component). As a practical expedient permitted under the new guidance, ASC 842 Leases, (“ASC 842”), the Company has elected to account for the lease and non-lease components as a single lease component. Lease payments, which may include lease components and non-lease components, are included in the measurement of the Company’s lease liabilities to the extent that such payments are either fixed amounts or variable amounts based on a rate or index (fixed in substance) as stipulated in the lease contract.
None of the Company’s lease agreements contain any material residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements in existence at the date of adoption that were classified as operating leases under the legacy guidance, ASC 840, have been classified as operating leases under ASC 842. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option.
Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. When the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s borrowing rates at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives.
The components of the right-of-use assets and lease liabilities were as follows (in thousands):
Balance Sheet ClassificationMarch 31,
2022		December 31,
2021
Right-of-use assets, netRight-of-use assets, net$7,699 $7,839 
Current operating lease liabilitiesAccrued expenses and other current liabilities$1,759 $1,769 
Non-current operating lease liabilitiesOther long-term liabilities6,956 7,112 
Total operating lease liabilities$8,715 $8,881 
Weighted-average remaining lease term (in years)4.85.0
Weighted-average discount rate9.1 %9.1 %

The components of lease cost were as follows (in thousands):
Three Months Ended March 31,
20222021
Operating lease costs included in operating costs and expenses:
Operating leases$610 $510 

Supplemental cash flow information related to leases was as follows (in thousands):
Three Months Ended March 31,
20222021
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows related to operating leases$622 $535 
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases$79 $148 
The future minimum payments under operating leases were as follows as of March 31, 2022 (in thousands):
2022 (remainder)$1,918 
20232,187 
20242,019 
20251,736 
20261,727 
20271,152 
Thereafter— 
Total minimum operating lease payments$10,739 
Less: amounts representing interest(2,024)
Present value of net minimum operating lease payments8,715 
Less: current portion(1,759)
Long-term portion of operating lease obligations$6,956 

Lessor
Monitoring device leases in which the Company serves as lessor are classified as operating leases. Accordingly, rental devices are carried at historical cost less accumulated depreciation and impairment, if any, and are included in rental assets, net, on the condensed consolidated balance sheets.
Since the lease components meet the criteria for an operating lease under ASC 842, the Company has elected the practical expedient to combine the lease and the non-lease components because the service is the predominant element in the eyes of the customer and the pattern of service delivery is the same for both elements. The Company accounts for the combined component as a single performance obligation under ASC 606, Revenue from Contracts with Customers.