Leases

9 Months Ended

Sep. 30, 2023

Note 11—Leases

The Company is the lessee under operating lease agreements primarily for office space in domestic and foreign locations where it has operations and for solar development projects with lease periods expiring between 2023 and 2052. The Company has no finance leases.

The Company determines if a contract is a lease at inception. Right-of-Use ("ROU") assets are included under other assets in the consolidated balance sheet. The current portion of the operating lease liabilities are included in other current liabilities and the noncurrent portion is included in other liabilities in the consolidated balance sheet.

ROU assets and operating lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is the incremental borrowing rate, because the interest rate implicit in most of our leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized borrowing rate based on information available at the lease commencement date. ROU assets also include any prepaid lease payments and lease incentives. The lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. The Company uses the base, non-cancelable, lease term when determining the lease assets and liabilities. Operating lease expense is recognized on a straight-line basis over the lease term.

	September 30, 2023		December 31, 2022
	(in thousands)
ROU Assets	$	1,874	$	1,892

Current portion of operating lease liabilities		323		250
Noncurrent portion of operating lease liabilities		1,645		1,699
Total	$	1,968	$	1,949

At September 30, 2023, the weighted average remaining lease term is 10.5 years and the weighted average discount rate is 6.7%.

Supplemental cash flow information for ROU assets and operating lease liabilities are as follows:

	Nine Months Ended September 30,
	2023		2022
Cash paid for amounts included in the measurement of lease liabilities:	(in thousands)
Operating cash flows from operating activities	$	487	$	380

ROU assets obtained in the exchange for lease liabilities
Operating leases	$	237	$	—

Future lease payments under operating leases as of September 30, 2023 were as follows:

(in thousands)
Remainder of 2023	$	141
2024		438
2025		369
2026		272
2027		277
Thereafter		1,616
Total future lease payments		3,113
Less imputed interest		1,145
Total operating lease liabilities	$	1,968

Rental expenses under operating leases were $0.2 million and $0.5 million in the three and nine months ended September 30, 2023. Rental expenses under operating leases were $0.1 million and $0.4 million in the three and nine months ended September 30, 2022.