Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
 3 Months Ended
Mar. 31, 2024
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

21. RELATED PARTY TRANSACTIONS

As a result of acquisitions, the Company assumed lease agreements with related parties for facilities across the United States which extend through 2029. As of March 31, 2024, the Company recorded $3.6 million of right of use asset and lease liability related to these agreements. During the three months ended March 31, 2024, the Company incurred lease expense of $0.2 million to the related party. During the three months ended March 31, 2023, the Company incurred lease expense of $0.2 million to the related party. The Company’s annual commitment related to these lease agreements is $0.8 million.

The Company sells products to Lightforce Orthodontics which is affiliated with a member of the Company’s Board of Directors. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three months ended March 31, 2024, the Company recognized $0.2 million of revenue from Lightforce Orthodontics. During the three months ended March 31, 2023, the Company recognized $0.4 million of revenue. As of March 31, 2024, the Company has an account receivable balance of $0.2 million with Lightforce Orthodontics.

The Company sells products to Bloom Energy which is affiliated with a member of the Company’s Board of Directors. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three months ended March 31, 2023 and 2024, the Company did not recognize any revenue from Bloom Energy. As of March 31, 2024, the Company has an immaterial account receivable balance with Bloom Energy.

The Company sells products to Viewray Systems which is an entity controlled by a shareholder. Management believes the sales were conducted on terms equivalent to those prevailing in an arm’s-length transaction. During the three months ended March 31, 2024, the Company recognized $3.4 million of revenue from Viewray Systems.