The following tables set forth a summary of changes in the fair value of Level 3 liabilities for the years ended December 31, 2021 and 2020: December 31, 2020 Transfers in (out) (1) Change in fair value recognized in earnings December 31, 2021 Liabilities Interest make-whole derivative - related party and others $ 4 $ — $ (4) $ — Bookings Commitment 32,651 (500) 2,323 34,474 $ 32,655 $ (500) $ 2,319 $ 34,474 December 31, 2019 Transfers in (out) (1) Change in fair value December 31, 2020 Liabilities Interest make-whole derivative - related party and others $ — $ — $ 4 $ 4 Bookings Commitment 21,983 (500) 11,168 32,651 $ 21,983 $ (500) $ 11,172 $ 32,655 (1) Transfers out of the Bookings Commitment fair value liability relates to the Annual Minimum Commitment, which was recorded in accrued and other current liabilities. Fair Value of Convertible Notes held at amortized cost As of December 31, 2021 and 2020, the fair value and carrying value of the Company's convertible notes were: Fair value Carrying value Face value 2021 Notes Balance as of December 31, 2021 Related party $ 51,466 $ 62,268 $ 62,500 Others 61,760 74,603 75,000 $ 113,226 $ 136,871 $ 137,500 Fair value Carrying value Face value 2016 Notes Balance as of December 31, 2020 Related party $ 9,553 $ 9,411 $ 10,000 Others 92,660 90,578 97,000 $ 102,213 $ 99,989 $ 107,000 The fair value of the 2021 Notes was determined by using unobservable inputs that are supported by minimal non-active market activity and that are significant to determining the fair value of the debt instrument. The fair value is level 3 in the fair value hierarchy. Note13. Leases The Company has operating leases for corporate offices, data centers, and certain equipment. The Company's leases have lease terms of 1 year to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year. Options to extend are included in the lease term where the Company is reasonably certain to exercise the options. Variable payments on the Company's leases are expensed as incurred, as they do not depend on an index or rate. The Company concluded certain leases for data centers had a term of less than 1 year at inception, as arrangements are only renewed following marketplace assessments and negotiations with vendors. NantHealth, Inc. Notes to Consolidated Financial Statements (Dollars in thousands, except per share amounts) - 121 -
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