Interest Expense, Net (Dollars in thousands) Year Ended December 31, Period-To-Period Change 2021 2020 2021 vs. 2020 Amount Amount Amount Percentage Interest expense, net $ 14,481 $ 19,199 $ (4,718) (24.6)% Interest expense, net decreased by $4.7 million, from $19.2 million for the year ended December 31, 2020 to $14.5 million for the year ended December 31, 2021. On January 1, 2021, the Company early adopted Accounting Standards Update ("ASU') No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40), resulting in $5.7 million of less noncash interest expense. This decrease was partially offset by $0.7 million in higher convertible debt interest driven by the convertible notes issued in 2021, and an increase in additional interest on the Nant Capital Note of $0.3 million. Refer to the section entitled "Liquidity and Capital Resources" below and Note 11, and Note 19 to our Consolidated Financial Statements included in Item 8 of this Annual Report on Form 10-K for further discussion of our Convertible Notes and the Nant Capital Note. Other Expense, Net (Dollars in thousands) Year Ended December 31, Period-To-Period Change 2021 2020 2021 vs. 2020 Amount Amount Amount Percentage Other expense, net $ 3,089 $ 10,824 $ (7,735) (71.5)% Other expense, net decreased by $7.7 million, from $10.8 million for the year ended December 31, 2020 to $3.1 million for the year ended December 31, 2021. The expense during 2021 was primarily attributable to a $2.3 million increase in the fair value of the Bookings Commitment liability, as a result of changes in the cost of debt due to macroeconomic factors and the passage of time. In addition, we recognized a $0.7 million loss resulting from the exchange and prepayment of the convertible notes issued in 2016. The expense during 2020 was mainly driven by a $11.2 million increase in the fair value of the Bookings Commitment liability, partially offset by income from transition services provided to Masimo related to the sale of the Connected Care Business. Loss from Related Party Equity Method Investment (Dollars in thousands) Year Ended December 31, Period-To-Period Change 2021 2020 2021 vs. 2020 Amount Amount Amount Percentage Loss from related party equity method investment $ — $ 31,702 $ (31,702) (100.0)% The 2020 loss from related party equity method investment is related to our pro rata share of losses from our investment in NantOmics, amortization of the basis difference in the investment, and impairment losses. The loss in 2020 was primarily due to an other-than-temporary impairment of the full carrying value of our investment in NantOmics of $28.2 million at June 30, 2020 (see Note 10 to the accompanying Consolidated Financial Statements). - 85 -
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