KORE Group Holdings, Inc. Post-effective amendment to a registration statement that is not immediately effective upon filing

Post-effective amendment to a registration statement that is not immediately effective upon filing

Commitments and Contingencies

Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 11 – COMMITMENTS AND CONTINGENCIES

Operating Leases

The Company leases various office spaces under non-cancellable operating leases expiring through 2029. Rent expense for years ended December 31, 2021, 2020 and 2019 was $2.7 million, $2.5 million, and $2.3 million, respectively.

The future minimum lease payments under operating leases as of December 31, 2021 for the next five years is as follows:


(in ‘000)	Amount
2022	$	2,924
2023		1,904
2024		1,495
2025		1,170
2026		958
Thereafter		3,412

Total	$	11,863

Capital Leases

The Company has capital lease obligations in the Netherlands for hardware and software leases.

The future minimum lease payments under capital leases as of December 31, 2021 for the next five years is as follows:


(in ‘000)	Amount
2022	$	207
2023		143
2024		119
2025		26
2026		—

Total minimum lease payments	$	495
Interest expense		(40	)

Total	$	455

Off-Balance-Sheet

Credit Exposures

The Company has standby letters of credit and bank guarantees of $0.4

million

as of December 31, 2021 and 2020, respectively. These contingent liabilities are secured by highly liquid instruments included in restricted cash.

Purchase Obligations

The Company has vendor commitments primarily relating to carrier and open purchase obligations that the Company incurs in the ordinary course of business. As of December 31, 2021, the purchase commitments were as follows:


(in ‘000)	Amount
2022	$	21,144
2023		9,446
2024		1,245
2025		1,245
2026		—
Thereafter		—

Total	$	33,080

Legal Proceedings

From time to time, the Company is involved in litigation arising out of the ordinary course of our business. There are no material legal proceedings, other than ordinary routine litigation incidental to the business, to which the Company or any of the Company’s subsidiaries are a party or of which any of the Company or the Company’s subsidiaries’ property is subject.