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Leases
12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
Leases

14. Leases

The Company’s primary lease represents the lease for its corporate headquarters in Boston, Massachusetts. The Company modified the corporate headquarter lease during the third quarter of 2021. Rent expense for the year ended December 31, 2022 was $4,967. The carrying value of the Company’s right-of-use assets are substantially concentrated in real estate as the Company primarily leases office space. The Company’s policy is not to record leases with an original lease term of one year or less on the consolidated balance sheets. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company does not have any lease contracts with the option to purchase as of December 31, 2022.

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

The components of lease cost under ASC 842 were
   as follows:

 

 

 

 

 

 

 

 

 

Operating lease cost

 

$

3,694

 

 

$

5,617

 

 

$

6,632

 

Short-term lease cost

 

 

 

 

 

 

 

 

 

Variable lease cost

 

 

 

 

 

 

 

 

 

Total lease cost

 

$

3,694

 

 

$

5,617

 

 

$

6,632

 

 

 

 

 

Years Ended December 31,

 

 

 

2022

 

 

2021

 

 

2020

 

Supplemental cash flow information:

 

 

 

 

 

 

 

 

 

Cash paid for amounts included in measurement
   of lease liabilities:

 

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

2,672

 

 

$

6,352

 

 

$

7,006

 

Non-cash lease activity:

 

 

 

 

 

 

 

 

 

Right-of-use lease assets obtained in exchange for
   new operating lease liability:

 

 

 

 

 

 

 

 

 

Operating leases

 

$

851

 

 

$

15,506

 

 

$

417

 

 

 

 

As of December 31,

 

 

 

2022

 

 

2021

 

Supplemental balance sheet information related to
   leases is as follows:

 

 

 

 

 

 

Operating leases

 

 

 

 

 

 

Operating lease right-of-use assets

 

$

13,509

 

 

$

16,422

 

Total operating right-of-use lease assets

 

$

13,509

 

 

$

16,422

 

Operating lease liabilities, current

 

 

3,057

 

 

 

1,918

 

Operating lease liabilities, net of current portion

 

 

11,787

 

 

 

14,694

 

Total operating lease liabilities

 

$

14,844

 

 

$

16,612

 

Weighted-average remaining lease term (in years)

 

4.1 years

 

 

5.0 years

 

Weighted-average discount rate

 

 

1.3

%

 

 

1.1

%

As of December 31, 2022, minimum future lease payments for these operating leases were as follows:

 

Years ending December 31,

 

 

 

2023

 

$

3,203

 

2024

 

 

3,704

 

2025

 

 

3,773

 

2026

 

 

3,650

 

2027

 

 

893

 

Thereafter

 

 

 

Total lease payments

 

$

15,223

 

Less imputed interest

 

 

(379

)

Total present value of lease liabilities

 

$

14,844

 

Indemnification

The Company’s arrangements generally include certain provisions for indemnifying clients against third-party claims asserting infringement of certain intellectual property rights in the ordinary course of business. The Company also regularly indemnifies clients against third-party claims that the company’s products or services breach applicable law or regulation or from claims resulting from a breach of the business associate agreement in place with the client. In addition, the Company indemnifies its officers, directors and certain key employees while they are serving in good faith in their capacities. Through December 31, 2022, there have been no claims under any indemnification provisions.

Litigation

From time to time, and in the ordinary course of business, the Company may be subject to various claims, charges, and litigation. On September 14, 2020, the Company received a letter from Teladoc Health, Inc. alleging that certain of the Company’s cart products and associated peripherals infringe upon their patents. On October 12, 2020, Teladoc Health, Inc filed a claim against the Company related to these allegations. On June 30, 2022, the claim was dismissed pursuant to a confidential settlement between the parties. As of December 31, 2022 and 2021, the Company did not have any pending claims, charges or litigation that it expects would have a material adverse effect on its consolidated financial position, results of operations or cash flows.