Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

v3.22.2.2
Property and Equipment
 9 Months Ended
Sep. 30, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and EquipmentProperty and equipment consisted of the following for the periods presented (in thousands):
September 30, 2022 December 31, 2021
Office equipment $ 5,015  $ 4,729 
Office furniture 5,729  5,588 
Leasehold improvements 2,615  2,496 
Fixed assets not placed in service 2  118 
Capitalized internal-use software 4,599  3,533 
Phone hardware —  26,034 
Payment terminals 2,187  1,581 
Property and equipment, gross 20,147  44,079 
Less accumulated depreciation and amortization (9,218) (19,577)
Property and equipment, net $ 10,929  $ 24,502 
Depreciation and amortization expense on property and equipment (excluding amortization on operating ROU assets) was $3.2 million and $3.2 million for the three months ended September 30, 2022 and 2021, respectively, and $10.0 million and $8.8 million for the nine months ended September 30, 2022 and 2021, respectively. Of this expense, $2.2 million and $2.3 million for the three months ended September 30, 2022 and 2021, respectively, and $7.0 million and $6.7 million for the nine months ended September 30, 2022 and 2021, respectively, related to phone hardware finance ROU assets (see also footnote 7) and data center equipment which has been included in cost of revenue in the statements of operations. Note that these finance ROU assets were reported as “phone hardware” prior to January 1, 2022. Capitalized internal-use software amortization expense was $0.2 million and $0.2 million for the three months ended September 30, 2022 and 2021, respectively, and $0.7 million and $0.4 million for the nine months ended September 30, 2022 and 2021, respectively, which has been included in the cost of revenue in the statements of operations. Capitalized implementation amortization expense was zero and $0.1 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, which has been included in operating expense in the statements of operations.