v2.4.0.8
Capital Lease
 12 Months Ended
Dec. 31, 2013
Capital Lease  
Capital Lease

9. Capital Lease

 

On October 1, 2012, the Company entered into an agreement under which it is providing a customer with 255 GenDrive units, service and maintenance of the units and daily delivery of hydrogen in exchange for a monthly utility payment tied to the amount of energy (kilograms of hydrogen) consumed each month.  The agreement has an initial term of three years with an automatic three year renewal unless the customer terminates at the end of the initial 3 year term. 

On December 28, 2012, Plug Power sold the 255 GenDrive units in use under the agreement to a third party and leased back the equipment to fulfill its obligations under the agreement or at other customer sites as agreed to by the owner/lessor. The transaction has been recorded by the Company as leased property under capital lease with a corresponding liability of obligations under capital lease on the consolidated balance sheets.

 

Future minimum capital lease payments as of December 31, 2014 are:

 

 

 

Year ending December 31,

Capital leases

2014

$

815,184 

2015

611,388 

Total future minimum lease payments

$

1,426,572 

 

 

 

         Less amount representing interest (at 9.9%)

121,823 

Present value of net minimum capital lease payments

1,304,749 

         Less current installments of obligations under capital leases

717,870 

 

Obligations under capital leases, excluding current installments

$

586,879 

 

 

 

 

 

 

 Leased property under capital lease at December 31, 2013 and December 31, 2012 consists of the following:

 

 

December 31,

 

December 31,

 

2013

 

2012

Leased property under capital lease

$

3,098,921 

 

$

3,098,921 

Less accumulated depreciation

(645,609)

 

(129,122)

Leased property under capital lease, net

$

2,453,312 

 

$

2,969,799