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LEASES | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
LEASES | LEASES As of December 31, 2024 the Company had operating and finance leases primarily for office space, mining facilities and land in the United States. The Company had an arrangement with Applied Digital Corporation for the use of energized cryptocurrency mining facilities under which the Company pays for electricity per megawatt based on usage. The Company has determined that it has embedded operating leases at two of the facilities governed by this arrangement that commenced in January and March 2023, and has elected not to separate lease and non-lease components. Payment for these two operating leases are entirely variable and are based on usage of electricity, and expensed as incurred. The Company has amortized the ROU assets totaling $0.8 million and $0.3 million for the year ended December 31, 2024 and 2023, respectively. The following table presents the assets and liabilities related to the Company’s operating and finance leases as of December 31, 2024 and 2023:
(in thousands) |  |  | December 31, 2024 |  | December 31, 2023 |  |
Assets | Balance Sheet Classification |  |  |  |  |  |
Operating lease ROU assets | Operating lease right-of-use assets |  | $ | 16,874 |  |  | $ | 443 |  |  |
Finance lease ROU assets | Property and equipment, net |  | 2,877 |  |  | — |  |  |
Total ROU assets |  |  | $ | 19,751 |  |  | $ | 443 |  |  |
Liabilities |  |  |  |  |  |  |
Current portion: |  |  |  |  |  |  |
Operating lease liabilities | Operating lease liabilities, current portion |  | $ | 239 |  |  | $ | 124 |  |  |
Finance lease liability | Finance lease liability, current portion |  | 168 |  |  | — |  |  |
Long-term portion: |  |  |  |  |  |  |
Operating lease liabilities | Operating lease liabilities, net of current portion |  | 22,977 |  |  | 354 |  |  |
Finance lease liability | Finance lease liability, net of current portion |  | 3,709 |  |  | — |  |  |
Total lease liabilities |  |  | $ | 27,093 |  |  | $ | 478 |  |  |
Lease costs are recorded on a straight-line basis within operating expenses. The Company’s total lease expenses are comprised of the following:
|  |  |  | For the Year Ended December 31,
(in thousands) |  |  |  |  |  | 2024 |  | 2023 |  | 2022
Lease costs: |  |  |  |  |  |  |  |  |  |
Operating lease cost |  |  |  |  |  | $ | 838 |  |  | $ | 315 |  |  | $ | 327 |
Finance lease cost: |  |  |  |  |  |  |  |  |  |
Amortization of ROU asset (1) |  |  |  |  |  | 22 |  |  | — |  |  | — |
Short-term lease rent expense |  |  |  |  |  | 59 |  |  | 36 |  |  | 29 |
Variable lease cost |  |  |  |  |  | 107,420 |  |  | 80,108 |  |  | — |
Total rent expense |  |  |  |  |  | $ | 108,339 |  |  | $ | 80,459 |  |  | $ | 356 |
(1) Amortization of finance lease ROU asset is included in “Cost of revenues - depreciation and amortization” on the Consolidated Statements of Operations. Additional information regarding the Company’s leasing activities is as follows:
|  | For the Year Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Operating cash flows from operating leases |  | $ | 629 |  | $ | (32) |  | $ | 67
Financing cash flows from finance lease |  | $ | 163 |  | $ | — |  | $ | —
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Operating leases |  | 9.1 |  | 3.2 |  | 3.9
Finance lease |  | 96.3 |  | — |  | —
Weighted-average discount rate: |  |  |  |  |  |
Operating leases |  | 7.0 | % |  | 5.0 | % |  | 5.0 | %
Finance lease |  | 7.2 | % |  | — | % |  | — | %
The following table presents the Company’s future minimum lease payments as of December 31, 2024:
(in thousands) |  |  |  |
Year |  | Operating Leases |  | Finance Lease
2025 |  | $ | 1,855 |  |  | $ | 168 |
2026 |  | 2,478 |  |  | 173 |
2027 |  | 4,233 |  |  | 178 |
2028 |  | 4,180 |  |  | 183 |
2029 |  | 3,993 |  |  | 189 |
Thereafter |  | 17,433 |  |  | 88,907 |
Total |  | 34,172 |  |  | 89,798 |
Less: Imputed interest |  | (10,956) |  |  | (85,921) |
Present value of lease liability |  | $ | 23,216 |  |  | $ | 3,877 |

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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