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Leases | 6 Months Ended | 12 Months Ended
--- | --- | ---
Jun. 30, 2024 | Dec. 31, 2023
Leases [Abstract] |  |
Leases | 7. Leases The Company adopted the amendments to ASC 842 Leases, which require lessees to recognize lease assets and liabilities arising from operating leases on the balance sheet. Finance and operating lease assets and lease liabilities are as follows:
Lease Classification |  | Classification |  | Six Months Ended June 30, 2024 |  |  | Year-ended December 31, 2023 |
Assets |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |
Operating |  | Current assets |  | $ | — |  |  | $ | — |
Finance |  | Current assets |  |  | 1 |  |  |  | 1 |
Long-term |  |  |  |  |  |  |  |  |  |
Operating |  | Long-term assets |  |  | 2,141 |  |  |  | 2,262 |
Finance |  | Long-term assets |  |  | 31 |  |  |  | 43 |
Total right-of-use assets |  |  |  | $ | 2,173 |  |  | $ | 2,306 |
Liabilities |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |
Operating |  | Short-term lease liability |  | $ | 216 |  |  | $ | 222 |
Finance |  | Short-term lease liability |  |  | 33 |  |  |  | 6 |
Noncurrent |  |  |  |  |  |  |  |  |  |
Operating |  | Long-term lease liability |  |  | 2,006 |  |  |  | 2,111 |
Finance |  | Long-term lease liability |  |  | 63 |  |  |  | 94 |
Total lease liabilities |  |  |  | $ | 2,318 |  |  | $ | 2,433 |
The components of lease expense were as follows:
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Operating lease expense |  | $ | 104 |  |  | $ | 112 |  |  | $ | 213 |  |  | $ | 236 |
Finance lease expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amortization on ROU assets |  |  | 7 |  |  |  | 7 |  |  |  | 16 |  |  |  | 41 |
Interest on lease liabilities |  |  | 1 |  |  |  | 1 |  |  |  | 2 |  |  |  | 12 |
Short-term lease expense |  |  | 21 |  |  |  | 15 |  |  |  | 39 |  |  |  | 30 |
Total lease expense |  | $ | 133 |  |  | $ | 135 |  |  | $ | 270 |  |  | $ | 319 |
Other information related to leases was as follows:
|  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |
Weighted average remaining lease term (in years) |  |  |  |  |  |  |  |
Operating leases |  |  | 7.4 |  |  |  | 8.3 |
Finance leases |  |  | 1.8 |  |  |  | 2.4 |
Weighted average discount rate: |  |  |  |  |  |  |  |
Operating leases |  |  | 8.1 | % |  |  | 7.9 | %
Finance lease |  |  | 4.6 | % |  |  | 4.6 | %
|  | Three Months Ended |  |  | Six Months Ended |
|  | June 30, 2024 |  |  | June 30, 2023 |  |  | June 30, 2024 |  |  | June 30, 2023 |
Cash paid for amounts included in measurement of lease liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 99 |  |  | $ | 107 |  |  | $ | 203 |  |  | $ | 209 |
Operating cash flows from finance leases |  | $ | 2 |  |  | $ | 2 |  |  | $ | 4 |  |  | $ | 14 |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating leases |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 55 |
Finance lease |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Future minimum lease payments under non-cancellable leases were as follows:
Year |  | Six Months Ended June 30, 2024 |  |  | Six Months Ended June 30, 2023 |
|  | Operating Leases |  |  | Finance Leases |  |  | Operating Leases |  |  | Finance Leases |
2024 |  | $ | 198 |  |  | $ | 6 |  |  | $ | 615 |  |  | $ | 14 |
2025 |  |  | 371 |  |  |  | 32 |  |  |  | 371 |  |  |  | 32 |
2026 |  |  | 367 |  |  |  | 65 |  |  |  | 367 |  |  |  | 65 |
2027 |  |  | 412 |  |  |  | — |  |  |  | 412 |  |  |  | — |
2028 |  |  | 412 |  |  |  | — |  |  |  | 412 |  |  |  | — |
Thereafter |  |  | 1,220 |  |  |  | — |  |  |  | 1,220 |  |  |  | — |
Total future minimum lease payments |  |  | 2,980 |  |  |  | 103 |  |  |  | 3,397 |  |  |  | 111 |
Less: imputed interest |  |  | (758 | ) |  |  | (8 | ) |  |  | (946 | ) |  |  | (10 | )
Total |  |  | 2,222 |  |  |  | 95 |  |  |  | 2,451 |  |  |  | 101 |
Plus: lease asset, current |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | 1 |
Less: lease liability, current |  |  | (216 | ) |  |  | (33 | ) |  |  | (229 | ) |  |  | (6 | )
Total long-term lease liability |  | $ | 2,006 |  |  | $ | 63 |  |  | $ | 2,222 |  |  | $ | 96 |
| 7. Leases In February 2021, the Company entered into a lease agreement for a commercial property with Gateway Rental Properties, LLC, to be used for general office and administrative purposes. The lease commenced on March 1, 2021 and was renewed March 1, 2023. The monthly rent on the lease, which includes CAM, interest, and taxes, is approximately $3. The term of the initial and renewed lease is for two years, with an option to renew for an additional two-year period. The initial lease contained an option to purchase the property at any time during the Initial Term for $375 for which the Company did not exercise, resulting in a gain on lease extinguishment. The Company initially accounted for the lease as a finance lease, resulting in a lease liability and ROU asset for the year ended December 31, 2022. The renewed lease is accounted for as an operating lease, resulting in a liability and ROU asset of $55, recorded as of the lease commencement date. A rate commensurate with assets of a similar term of 15.2%, as estimated by management, was used to discount the future payments on the lease to their present value. In August 2021, the Company entered into a ground lease agreement with a Tennessee resident, the landlord, for 2 acres of unencumbered land in Lenoir City, Tennessee. On February 8, 2022, the lease was assigned to Ava Data. The lease commenced on November 6, 2021. The monthly rent on the lease is $15. The lease contained an option to prepay base rent in the amount equal to the outstanding principal balance and accrued interest under the landlord’s Promissory Note dated July 5, 2021, in the original principal amount of $175 (the “Note”) and receive a credit against the next monthly payments of base rent due under the lease in an amount equal to the rent prepayment discounted against such base rent at a 4% discount. GRIID exercised this prepay option, resulting in a base rent prepayment of $170. The initial term of the lease is for five years, with an option to renew it for an additional five-year period that the Company is reasonably certain to exercise. The lease also contains an option to purchase the property at any time after the one-year anniversary of the commencement of the lease for $2,100 that GRIID is not reasonably certain to exercise. The Company has accounted for the lease as an operating lease, resulting in a lease liability of $1,136 and ROU asset of $1,306 recorded as of the lease commencement date. A rate commensurate with assets of a similar term of 7.0%, as estimated by management, was used to discount the future payments on the lease to their present value. On January 5, 2022, the Company entered into a lease agreement for commercial property to be used for distribution, mining operations, and warehouse and office space in Rutledge, Tennessee. The lease commenced on January 1, 2022 for 10,000 square feet of the building and on February 1, 2022 for the remaining 37,906 square feet of the building. The monthly rent on the lease is $16. The initial term of the lease is for five years. The lease includes an option to renew for an additional five-year period that the Company is reasonably certain to exercise. The monthly base rent during the renewal term is $18. Monthly rent for the initial and optional renewal term does not include CAM, insurance or taxes as the payments are variable. The Company has accounted for the lease as an operating lease resulting in a lease liability and ROU asset of $1,315 recorded as of the lease commencement date. A rate commensurate with assets of a similar term of 9.0%, as estimated by management, was used to discount the future payments on the lease to their present value. On March 4, 2022, the Company entered into a thirty-nine-month lease agreement for a truck. The lease commenced on March 4, 2022. The monthly lease payments on the truck are $1. Because the lease contains an option to purchase the truck at the end of the lease that the Company is reasonably certain to exercise, the Company has accounted for the lease as a finance lease, resulting in a lease liability and ROU asset of $47 recorded as of the lease commencement date. A rate commensurate with assets of a similar term of 4.7%, as estimated by management, was used to discount the future payments on the lease to their present value. On March 15, 2022, the Company entered into a two-year lease agreement for office space in Austin, Texas. The lease commenced on March 15, 2022. The monthly rent on the lease is $3 excluding CAM, insurance and taxes as those monthly payments are variable. The lease contains no renewal or purchase options. The Company has accounted for the lease as an operating lease resulting in a lease liability and ROU asset of $60. A rate commensurate with assets of a similar term of 4.5%, as estimated by management, was used to discount the future payments on the lease to their present value. On April 25, 2022, the Company entered a one-year lease extension for the Data Black River LLC location. The lease can be extended until June 30, 2024. The monthly rent is $1 and excludes CAM charges, which are invoiced separately monthly. The Company has accounted for the lease as an operating lease, with the rent being expensed monthly. Finance and operating lease assets and lease liabilities are as follows:
Lease Classification |  | Classification |  | December 31, 2023 |  |  | December 31, 2022 |
Assets |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |
Operating |  | Current assets |  | $ | — |  |  | $ | — |
Finance |  | Current assets |  |  | 1 |  |  |  | 1 |
Long-term |  |  |  |  |  |  |  |  |  |
Operating |  | Long-term assets |  |  | 2,262 |  |  |  | 2,454 |
Finance |  | Long-term assets |  |  | 43 |  |  |  | 96 |
Total right-of-use assets |  |  |  | $ | 2,306 |  |  | $ | 2,551 |
Liabilities |  |  |  |  |  |  |  |  |  |
Current |  |  |  |  |  |  |  |  |  |
Operating |  | Short-term lease liability |  | $ | 222 |  |  | $ | 205 |
Finance |  | Short-term lease liability |  |  | 6 |  |  |  | 377 |
Noncurrent |  |  |  |  |  |  |  |  |  |
Operating |  | Long-term lease liability |  |  | 2,111 |  |  |  | 2,300 |
Finance |  | Long-term lease liability |  |  | 94 |  |  |  | 98 |
Total lease liabilities |  |  |  | $ | 2,433 |  |  | $ | 2,980 |
The components of lease expense were as follows:
|  | Year Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |
Operating lease expense |  | $ | 440 |  |  | $ | 412 |
Finance lease expense |  |  |  |  |  |  |  |
Amortization on ROU assets |  |  | 55 |  |  |  | 192 |
Interest on lease liabilities |  |  | 14 |  |  |  | 59 |
Short-term lease expense |  |  | 61 |  |  |  | 86 |
Total lease expense |  | $ | 570 |  |  | $ | 749 |
Other information related to leases was as follows:
|  | Year Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |
Weighted average remaining lease term (in years) |  |  |  |  |  |  |  |
Operating leases |  |  | 7.8 |  |  |  | 8.8 |
Finance leases |  |  | 1.9 |  |  |  | 0.8 |
Weighted average discount rate: |  |  |  |  |  |  |  |
Operating leases |  |  | 8.1 | % |  |  | 8.0 | %
Finance lease |  |  | 4.6 | % |  |  | 12.7 | %
|  | Year Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |
Cash paid for amounts included in measurement of lease liabilities |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 423 |  |  | $ | 222 |
Operating cash flows from finance leases |  | $ | 16 |  |  | $ | 45 |
ROU assets obtained in exchange for lease obligations |  |  |  |  |  |  |  |
Operating leases |  | $ | 55 |  |  | $ | 1,375 |
Finance lease |  | $ | — |  |  | $ | 47 |
Future minimum lease payments under non-cancellable leases as of December 31, 2022 were as follows:
Year |  | Operating Leases |  |  | Finance Leases |
2024 |  | $ | 402 |  |  | $ | 10 |
2025 |  |  | 371 |  |  |  | 32 |
2026 |  |  | 367 |  |  |  | 65 |
2027 |  |  | 412 |  |  |  | — |
2028 |  |  | 412 |  |  |  | — |
Thereafter |  |  | 1,220 |  |  |  | — |
Total future minimum lease payments |  |  | 3,184 |  |  |  | 107 |
Less: imputed interest |  |  | (851 | ) |  |  | (8 | )
Total |  |  | 2,333 |  |  |  | 99 |
Plus: lease asset, current |  |  | — |  |  |  | 1 |
Less: lease liability, current |  |  | (222 | ) |  |  | (6 | )
Total long-term lease liability |  | $ | 2,111 |  |  | $ | 94 |

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