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Equity Method Investments (Tables) | 3 Months Ended
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Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract] |
Schedule of Joint Venture Revenues and Net Income (Loss) | The table below details the Company’s joint venture revenues, earnings, assets, and liabilities for the three months ended and as of March 31, 2025 (in thousands):
|  | DHC8 LLC |  |  | KNFH II LLC |  |  | DLZ Solutions LLC |  |  | HGC Funding I LLC and Origination I LLC |  |  | HGC MPG Funding LLC |  |  | Total |
Revenue |  | $ | 55 |  |  | $ | — |  |  | $ | 130 |  |  | $ | 1,202 |  |  | $ | 1,392 |  |  | $ | 2,779 |
Gross profit |  |  | 55 |  |  |  | (53 | ) |  |  | 130 |  |  |  | 1,202 |  |  |  | 1,392 |  |  |  | 2,726 |
Operating income (loss) |  |  | 41 |  |  |  | (108 | ) |  |  | 19 |  |  |  | 1,203 |  |  |  | 1,392 |  |  |  | 2,547 |
Net income (loss) |  |  | 41 |  |  |  | (108 | ) |  |  | 19 |  |  |  | 1,203 |  |  |  | 1,392 |  |  |  | 2,547 |
Assets |  |  | 928 |  |  |  | 7,568 |  |  |  | 7,901 |  |  |  | 23,247 |  |  |  | 31,381 |  |  |  | 71,025 |
Liabilities |  |  | 624 |  |  |  | 2,267 |  |  |  | 8 |  |  |  | 22 |  |  |  | — |  |  |  | 2,920 |
The table below details the Company’s joint venture revenues, earnings, assets, and liabilities for the three months ended and as of March 31, 2024 (in thousands):
|  | DHC8 LLC |  |  | KNFH II LLC |  |  | HGC Funding I LLC and Origination I LLC |  |  | HGC MPG Funding LLC |  |  | Total |
Revenues |  | $ | 321 |  |  | $ | — |  |  | $ | 1,140 |  |  | $ | 1,241 |  |  | $ | 2,702 |
Gross profit |  |  | 321 |  |  |  | — |  |  |  | 1,140 |  |  |  | 1,241 |  |  |  | 2,702 |
Operating income (loss) |  |  | 268 |  |  |  | (44 | ) |  |  | 1,134 |  |  |  | 1,241 |  |  |  | 2,599 |
Net income (loss) |  |  | 268 |  |  |  | (44 | ) |  |  | 1,134 |  |  |  | 1,241 |  |  |  | 2,599 |
Assets |  |  | 4,700 |  |  |  | 8,306 |  |  |  | 27,174 |  |  |  | 36,413 |  |  |  | 76,593 |
Liabilities |  |  | 1,080 |  |  |  | 4,000 |  |  |  | 1,244 |  |  |  | — |  |  |  | 6,324 |
Lessor Arrangements In December 2023, the Company, with certain partners making up the KNFH II LLC joint venture, entered into a purchase and sale agreement for a pharmaceutical plant in Fenton, Missouri, including land, a building, and all machinery and equipment held within, with a purchase price of $8.0 million. In April 2024, KNFH II LLC entered into a purchase and sale agreement for the machinery and equipment within the pharmaceutical plant with a purchase price of $5.0 million. Additionally, KNFH II LLC entered into a lease agreement for the lease of the real estate assets; the building and land. This lease agreement includes a purchase option with a purchase price of $8.0 million that is expected to be exercised by the lessee. The lessor arrangement is classified as a sales-type lease, and, therefore, the present value of future lease payments, including the purchase option, has been recognized as revenue and a lease receivable as of the effective date. As of March 31, 2025, the Company recognized approximately $1.2 million in earnings from equity method investments, related to the Company’s share of net income attributable to KNFH II LLC. On January 29, 2025, DLZ, a joint venture in which the Company holds a 20% share, entered into a purchase agreement for a pharmaceutical plant in Huntsville, Alabama, including land and a building, with a purchase price of approximately $7.8 million. Simultaneously, DLZ entered into a lease agreement with the Seller, for the lease of the real estate assets, the building and land. This lease agreement includes a purchase option exercisable prior to the end of the first 18-month lease term with a purchase price of approximately $9.7 million. Concurrently, the Company sold a one-third economic interest in cash flows related to the DLZ investment, which is reflected as a secured borrowing on its balance sheet within other non-current liabilities. As of March 31, 2025, the Company has not recorded any earnings related to the investment. Additionally, on January 29, 2025, the Company purchased a 20% participating interest in a financial asset for approximately $1.6 million. The participants’ investment was used to purchase machinery and equipment at the same pharmaceutical plant in Huntsville, Alabama for approximately $7.8 million. The participants entered into a lease agreement to lease the purchased machinery and equipment back to the seller with an 18-month lease term which includes purchase option exercisable prior to the end of the term with a purchase price of approximately $9.5 million. As of March 31, 2025, the Company reflects its participating interest of $1.6 million on its balance sheet within other long-term assets. Concurrently, the Company sold a one-third economic interest in cash flows related to its participating interest, which is reflected as a secured borrowing on its balance sheet within other non-current liabilities. As of March 31, 2025, the Company has not recorded any profit or loss related to its participating interest.

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