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LEASES | 9 Months Ended
--- | ---
Sep. 30, 2024
Leases [Abstract] |
LEASES | LEASES The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
| September 30, 2024 |  | December 31, 2023
Operating Leases: |  |  |
Operating lease assets | $ | 77,609 |  |  | $ | 58,586 |
Current portions of operating lease liabilities | $ | 12,242 |  |  | $ | 13,569 |
Long-term portions of operating lease liabilities | 58,007 |  |  | 42,258 |
Total operating lease liabilities | $ | 70,249 |  |  | $ | 55,827 |
Weighted-average remaining lease term | 19 years |  | 18 years
Weighted-average discount rate | 6.6 | % |  | 6.6 | %
Financing Leases: |  |  |
Energy assets | $ | 25,684 |  |  | $ | 27,262 |
Current portions of financing lease liabilities | $ | 766 |  |  | $ | 871 |
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | 12,655 |  |  | 13,057 |
Total financing lease liabilities | $ | 13,421 |  |  | $ | 13,928 |
Weighted-average remaining lease term | 12 years |  | 13 years
Weighted-average discount rate | 12.02 | % |  | 12.05 | %
The costs related to our leases were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Operating Leases: |  |  |  |  |  |  |
Operating lease costs | $ | 3,358 |  |  | $ | 2,692 |  |  | $ | 9,590 |  |  | $ | 7,128 |
Financing Leases: |  |  |  |  |  |  |
Amortization expense | 526 |  |  | 526 |  |  | 1,578 |  |  | 1,577 |
Interest on lease liabilities | 495 |  |  | 485 |  |  | 1,276 |  |  | 1,362 |
Total lease costs | $ | 4,379 |  |  | $ | 3,703 |  |  | $ | 12,444 |  |  | $ | 10,067 |
Supplemental cash flow information related to our leases was as follows:
| Nine Months Ended September 30,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 13,530 |  |  | $ | 5,975 |
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1) | $ | 24,810 |  |  | $ | 19,255 |
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our future lease obligations under our leases:
| Operating Leases |  | Financing Leases
Year ended December 31, |  |  |
2024 | $ | 4,536 |  |  | $ | 1,121 |
2025 | 14,123 |  |  | 2,213 |
2026 | 8,816 |  |  | 2,054 |
2027 | 7,671 |  |  | 1,922 |
2028 | 6,288 |  |  | 1,955 |
Thereafter | 77,763 |  |  | 15,935 |
Total lease payments | 119,197 |  |  | 25,200 |
Less: interest | 48,948 |  |  | 11,779 |
Present value of lease liabilities | $ | 70,249 |  |  | $ | 13,421 |
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2024 and relates to lease payments to be made over 25 years. We are in process of modifying this ground lease such that the criteria to record a ROU asset and ROU liability may not be met. Non-monetary Lease Transactions We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the nine months ended September 30, 2024 based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments. Sale-leasebacks These facilities are accounted for as failed sale-leasebacks and are classified as long-term financing facilities. August 2018 Master Sale-leaseback We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We sold and leased back three energy assets for $24,286 in cash proceeds under this facility during the nine months ended September 30, 2024. As of September 30, 2024, we have available funds remaining under this lending commitment. Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $58 and $172 for the three and nine months ended September 30, 2024 and 2023, respectively. December 2020 Master Sale-leaseback We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We were in default under this agreement as we had failed to satisfy the insurance requirements and historical coverage ratio under this agreement. On May 3, 2024, we received a waiver on this default. August 2024 Sale-leaseback On April 18, 2023 we entered into lease agreements with two investors and on August 14, 2024 we sold and leased back an energy asset for $234,788, of which 50% was allocated to each investor under these agreements. One lease has an expiration date of August 14, 2034 with an option to extend to August 14, 2044 while the other has an expiration date of August 14, 2044. At closing, we incurred $2,833 in lenders’ fees and debt issuance costs. In August 2024, we used $140,844 of the proceeds to pay off the April 2023 Construction Credit Facility. See Note 8 for additional information. As of September 30, 2024, we have no available funds remaining under this lending commitment.
LEASES | LEASES The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
| September 30, 2024 |  | December 31, 2023
Operating Leases: |  |  |
Operating lease assets | $ | 77,609 |  |  | $ | 58,586 |
Current portions of operating lease liabilities | $ | 12,242 |  |  | $ | 13,569 |
Long-term portions of operating lease liabilities | 58,007 |  |  | 42,258 |
Total operating lease liabilities | $ | 70,249 |  |  | $ | 55,827 |
Weighted-average remaining lease term | 19 years |  | 18 years
Weighted-average discount rate | 6.6 | % |  | 6.6 | %
Financing Leases: |  |  |
Energy assets | $ | 25,684 |  |  | $ | 27,262 |
Current portions of financing lease liabilities | $ | 766 |  |  | $ | 871 |
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | 12,655 |  |  | 13,057 |
Total financing lease liabilities | $ | 13,421 |  |  | $ | 13,928 |
Weighted-average remaining lease term | 12 years |  | 13 years
Weighted-average discount rate | 12.02 | % |  | 12.05 | %
The costs related to our leases were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Operating Leases: |  |  |  |  |  |  |
Operating lease costs | $ | 3,358 |  |  | $ | 2,692 |  |  | $ | 9,590 |  |  | $ | 7,128 |
Financing Leases: |  |  |  |  |  |  |
Amortization expense | 526 |  |  | 526 |  |  | 1,578 |  |  | 1,577 |
Interest on lease liabilities | 495 |  |  | 485 |  |  | 1,276 |  |  | 1,362 |
Total lease costs | $ | 4,379 |  |  | $ | 3,703 |  |  | $ | 12,444 |  |  | $ | 10,067 |
Supplemental cash flow information related to our leases was as follows:
| Nine Months Ended September 30,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 13,530 |  |  | $ | 5,975 |
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1) | $ | 24,810 |  |  | $ | 19,255 |
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our future lease obligations under our leases:
| Operating Leases |  | Financing Leases
Year ended December 31, |  |  |
2024 | $ | 4,536 |  |  | $ | 1,121 |
2025 | 14,123 |  |  | 2,213 |
2026 | 8,816 |  |  | 2,054 |
2027 | 7,671 |  |  | 1,922 |
2028 | 6,288 |  |  | 1,955 |
Thereafter | 77,763 |  |  | 15,935 |
Total lease payments | 119,197 |  |  | 25,200 |
Less: interest | 48,948 |  |  | 11,779 |
Present value of lease liabilities | $ | 70,249 |  |  | $ | 13,421 |
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2024 and relates to lease payments to be made over 25 years. We are in process of modifying this ground lease such that the criteria to record a ROU asset and ROU liability may not be met. Non-monetary Lease Transactions We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the nine months ended September 30, 2024 based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments. Sale-leasebacks These facilities are accounted for as failed sale-leasebacks and are classified as long-term financing facilities. August 2018 Master Sale-leaseback We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We sold and leased back three energy assets for $24,286 in cash proceeds under this facility during the nine months ended September 30, 2024. As of September 30, 2024, we have available funds remaining under this lending commitment. Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $58 and $172 for the three and nine months ended September 30, 2024 and 2023, respectively. December 2020 Master Sale-leaseback We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We were in default under this agreement as we had failed to satisfy the insurance requirements and historical coverage ratio under this agreement. On May 3, 2024, we received a waiver on this default. August 2024 Sale-leaseback On April 18, 2023 we entered into lease agreements with two investors and on August 14, 2024 we sold and leased back an energy asset for $234,788, of which 50% was allocated to each investor under these agreements. One lease has an expiration date of August 14, 2034 with an option to extend to August 14, 2044 while the other has an expiration date of August 14, 2044. At closing, we incurred $2,833 in lenders’ fees and debt issuance costs. In August 2024, we used $140,844 of the proceeds to pay off the April 2023 Construction Credit Facility. See Note 8 for additional information. As of September 30, 2024, we have no available funds remaining under this lending commitment.
LEASES | LEASES The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
| September 30, 2024 |  | December 31, 2023
Operating Leases: |  |  |
Operating lease assets | $ | 77,609 |  |  | $ | 58,586 |
Current portions of operating lease liabilities | $ | 12,242 |  |  | $ | 13,569 |
Long-term portions of operating lease liabilities | 58,007 |  |  | 42,258 |
Total operating lease liabilities | $ | 70,249 |  |  | $ | 55,827 |
Weighted-average remaining lease term | 19 years |  | 18 years
Weighted-average discount rate | 6.6 | % |  | 6.6 | %
Financing Leases: |  |  |
Energy assets | $ | 25,684 |  |  | $ | 27,262 |
Current portions of financing lease liabilities | $ | 766 |  |  | $ | 871 |
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs | 12,655 |  |  | 13,057 |
Total financing lease liabilities | $ | 13,421 |  |  | $ | 13,928 |
Weighted-average remaining lease term | 12 years |  | 13 years
Weighted-average discount rate | 12.02 | % |  | 12.05 | %
The costs related to our leases were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Operating Leases: |  |  |  |  |  |  |
Operating lease costs | $ | 3,358 |  |  | $ | 2,692 |  |  | $ | 9,590 |  |  | $ | 7,128 |
Financing Leases: |  |  |  |  |  |  |
Amortization expense | 526 |  |  | 526 |  |  | 1,578 |  |  | 1,577 |
Interest on lease liabilities | 495 |  |  | 485 |  |  | 1,276 |  |  | 1,362 |
Total lease costs | $ | 4,379 |  |  | $ | 3,703 |  |  | $ | 12,444 |  |  | $ | 10,067 |
Supplemental cash flow information related to our leases was as follows:
| Nine Months Ended September 30,
| 2024 |  | 2023
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 13,530 |  |  | $ | 5,975 |
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1) | $ | 24,810 |  |  | $ | 19,255 |
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our future lease obligations under our leases:
| Operating Leases |  | Financing Leases
Year ended December 31, |  |  |
2024 | $ | 4,536 |  |  | $ | 1,121 |
2025 | 14,123 |  |  | 2,213 |
2026 | 8,816 |  |  | 2,054 |
2027 | 7,671 |  |  | 1,922 |
2028 | 6,288 |  |  | 1,955 |
Thereafter | 77,763 |  |  | 15,935 |
Total lease payments | 119,197 |  |  | 25,200 |
Less: interest | 48,948 |  |  | 11,779 |
Present value of lease liabilities | $ | 70,249 |  |  | $ | 13,421 |
We have a future lease commitment for a ground lease which does not yet meet the criteria for recording a ROU asset or ROU liability. The net present value of this commitment totals $10,500 as of September 30, 2024 and relates to lease payments to be made over 25 years. We are in process of modifying this ground lease such that the criteria to record a ROU asset and ROU liability may not be met. Non-monetary Lease Transactions We have six lease liabilities consisting of obligations that will be settled with non-monetary consideration. The lease liabilities relating to non-monetary consideration were recorded during the nine months ended September 30, 2024 based on the fair market value of the project services or back up power expected to be provided, which approximate the cash payments. Sale-leasebacks These facilities are accounted for as failed sale-leasebacks and are classified as long-term financing facilities. August 2018 Master Sale-leaseback We enter into amendments to our August 2018 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We sold and leased back three energy assets for $24,286 in cash proceeds under this facility during the nine months ended September 30, 2024. As of September 30, 2024, we have available funds remaining under this lending commitment. Net gains from amortization expense recognized in cost of revenues relating to deferred gains and losses in connection with our sale-leaseback agreements were $58 and $172 for the three and nine months ended September 30, 2024 and 2023, respectively. December 2020 Master Sale-leaseback We enter into amendments to our December 2020 master lease and participation agreement from to time to time, which may extend the maturity date, increase the availability, or modify other covenants. We were in default under this agreement as we had failed to satisfy the insurance requirements and historical coverage ratio under this agreement. On May 3, 2024, we received a waiver on this default. August 2024 Sale-leaseback On April 18, 2023 we entered into lease agreements with two investors and on August 14, 2024 we sold and leased back an energy asset for $234,788, of which 50% was allocated to each investor under these agreements. One lease has an expiration date of August 14, 2034 with an option to extend to August 14, 2044 while the other has an expiration date of August 14, 2044. At closing, we incurred $2,833 in lenders’ fees and debt issuance costs. In August 2024, we used $140,844 of the proceeds to pay off the April 2023 Construction Credit Facility. See Note 8 for additional information. As of September 30, 2024, we have no available funds remaining under this lending commitment.

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