Annual report pursuant to Section 13 and 15(d)

Property and Equipment

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Property and Equipment
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment consisted of the following (in thousands):
December 31, 2023 December 31, 2022
Office equipment $ 5,830  $ 5,146 
Office furniture 6,416  5,763 
Leasehold improvements 2,731  2,615 
Fixed assets not placed in service 25  318 
Capitalized internal-use software 6,827  4,828 
Phone hardware —  — 
Payment terminals 2,354  2,389 
Property and equipment, gross 24,183  21,059 
Less accumulated depreciation and amortization (14,261) (10,286)
Property and equipment, net $ 9,922  $ 10,773 
Depreciation and amortization expense on property and equipment (excluding amortization on operating ROU assets) was $12.0 million, $13.0 million, and $12.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. Of this expense, $7.5 million, $9.0 million and $9.1 million was related to phone hardware finance ROU assets (see also Note 7) and data center equipment and has been included in cost of revenue in the consolidated statements of operations for the years ended December 31, 2023, 2022 and 2021, respectively. Note that these finance ROU assets were reported as “phone hardware” prior to January 1, 2022.
The carrying value of capitalized internal-use software consisted of the following (in thousands):
December 31, 2023 December 31, 2022
Capitalized internal-use software $ 6,827  $ 4,828 
Less: accumulated amortization (3,665) (2,408)
Capitalized internal-use software, net $ 3,162  $ 2,420 
Capitalized internal-use software amortization expense was $1.2 million, $0.8 million, and $0.6 million for the years ended December 31, 2023, 2022 and 2021, respectively, and has been included in the cost of revenue in the consolidated statements of operations. Capitalized software implementation amortization expense was $0.1 million, $0.2 million, and $0.2 million for the years ended December 31, 2023, 2022 and 2021, respectively, and has been included in operating expense in the consolidated statements of operations.