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Leases
 6 Months Ended
Jun. 30, 2023
Leases [Abstract]  
Leases Leases
The Company has entered into leases for commercial office spaces and vehicles. These leases are not unilaterally cancellable by the Company, are legally enforceable, and specify fixed or minimum amounts. The leases expire at various dates through 2031 and provide for renewal options. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties.
The leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay real estate taxes, insurance, and repairs.

Supplemental unaudited condensed consolidated balance sheet information related to leases is as follows:
ClassificationJune 30, 2023December 31, 2022
Operating lease assetsRight-of-use operating lease assets$5,076,837 5,305,881 
Finance lease assetsProperty, plant and equipment, net15,918 18,467 
Total lease assets$5,092,755 $5,324,348 
Operating lease liabilities - currentOperating lease liabilities - current$856,635 824,326 
Operating lease liabilities - noncurrentOperating lease liabilities - noncurrent4,867,157 5,090,170 
Finance lease liabilities - currentOther liabilities 7,318 7,184 
Finance lease liabilities - noncurrentOther long-term liabilities 10,513 12,959 
Total lease liabilities$5,741,623 $5,934,639 

The components of lease expense are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Operating lease expenseSelling, general and administrative $228,633 $164,076 $457,267 $340,597 
Finance lease expense: 
Amortization of finance lease assetsSelling, general and administrative1,432 1,451 2,855 7,391 
Interest on finance lease liabilitiesInterest income, net464 599 957 1,238 
Total lease expense$230,529 $166,126 $461,079 $349,226 

Operating LeaseFinance Lease
Maturities of lease liabilities are as follows:June 30, 2023June 30, 2023
2023$441,493 $3,659 
2024892,212 7,318 
2025893,046 7,318 
2026921,273 1,830 
2027946,683 — 
Thereafter3,798,553 — 
Total lease payments7,893,260 20,125 
Less: interest(2,169,468)(2,295)
Total lease obligations$5,723,792 $17,830 
Lease term and discount rate:
June 30, 2023December 31, 2022
Weighted-average remaining lease terms (in years):
Operating lease8.39.0
Finance lease2.83.3
Weighted-average discount rate:
Operating lease7.8%7.8%
Finance lease7.8%7.8%
Other Information:
Six Months Ended June 30,Six Months Ended June 30,
20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$229,044 $80,869 
Operating cash flows - finance leases$4,686 $1,238 
Financing cash flows - finance leases$4,480 $4,425 
Leased assets obtained in exchange for new finance lease liabilities$15,918 $20,827 
Leased assets obtained in exchange for new operating lease liabilities$— $— 
Sublease
In April 2022, the Company entered into a sublease agreement with certain local San Diego companies to sublease a portion of the Company's 4,811 square foot expansion. The term of the sublease is six months to twelve months with fixed base rental income ranging from $2,250 to $14,500 per month. The sublease has no option for renewal or extension at the end of the sublease term.
Sublease income are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Sublease lease incomeOther, net$101,915 $20,125 $231,685 $20,125 
Lessor
In February 2022, the Company entered into a 10 year master services agreement ("MSA") with a certain school district for FaaS to electrify their school bus fleet. A statement of work (“SOW”) for engineering, procurement and construction ("EPC") was also executed in conjunction with the MSA. As part of this SOW, the Company will provide electric vehicle supply equipment ("EVSE") and related warranties, infrastructure engineering and construction, installation of EVSE, and subscription services to Nuvve’s V2G GIVe platform. The MSA has both lease and non-lease components. The lease component is the EVSE and non-lease components are the EPCs. The Company accounted for the lease components as a sale-type lease with the investment in lease of $117,436 and $97,054 at June 30, 2023 and December 31, 2022, respectively.
Lease income are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Lease incomeProducts and services $24,027 $— $24,027 $— 
Interest incomeProducts and services 3,835 6,430 — 
Total lease income$27,862 $— $30,457 $— 
Leases Leases
The Company has entered into leases for commercial office spaces and vehicles. These leases are not unilaterally cancellable by the Company, are legally enforceable, and specify fixed or minimum amounts. The leases expire at various dates through 2031 and provide for renewal options. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties.
The leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay real estate taxes, insurance, and repairs.

Supplemental unaudited condensed consolidated balance sheet information related to leases is as follows:
ClassificationJune 30, 2023December 31, 2022
Operating lease assetsRight-of-use operating lease assets$5,076,837 5,305,881 
Finance lease assetsProperty, plant and equipment, net15,918 18,467 
Total lease assets$5,092,755 $5,324,348 
Operating lease liabilities - currentOperating lease liabilities - current$856,635 824,326 
Operating lease liabilities - noncurrentOperating lease liabilities - noncurrent4,867,157 5,090,170 
Finance lease liabilities - currentOther liabilities 7,318 7,184 
Finance lease liabilities - noncurrentOther long-term liabilities 10,513 12,959 
Total lease liabilities$5,741,623 $5,934,639 

The components of lease expense are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Operating lease expenseSelling, general and administrative $228,633 $164,076 $457,267 $340,597 
Finance lease expense: 
Amortization of finance lease assetsSelling, general and administrative1,432 1,451 2,855 7,391 
Interest on finance lease liabilitiesInterest income, net464 599 957 1,238 
Total lease expense$230,529 $166,126 $461,079 $349,226 

Operating LeaseFinance Lease
Maturities of lease liabilities are as follows:June 30, 2023June 30, 2023
2023$441,493 $3,659 
2024892,212 7,318 
2025893,046 7,318 
2026921,273 1,830 
2027946,683 — 
Thereafter3,798,553 — 
Total lease payments7,893,260 20,125 
Less: interest(2,169,468)(2,295)
Total lease obligations$5,723,792 $17,830 
Lease term and discount rate:
June 30, 2023December 31, 2022
Weighted-average remaining lease terms (in years):
Operating lease8.39.0
Finance lease2.83.3
Weighted-average discount rate:
Operating lease7.8%7.8%
Finance lease7.8%7.8%
Other Information:
Six Months Ended June 30,Six Months Ended June 30,
20232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$229,044 $80,869 
Operating cash flows - finance leases$4,686 $1,238 
Financing cash flows - finance leases$4,480 $4,425 
Leased assets obtained in exchange for new finance lease liabilities$15,918 $20,827 
Leased assets obtained in exchange for new operating lease liabilities$— $— 
Sublease
In April 2022, the Company entered into a sublease agreement with certain local San Diego companies to sublease a portion of the Company's 4,811 square foot expansion. The term of the sublease is six months to twelve months with fixed base rental income ranging from $2,250 to $14,500 per month. The sublease has no option for renewal or extension at the end of the sublease term.
Sublease income are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Sublease lease incomeOther, net$101,915 $20,125 $231,685 $20,125 
Lessor
In February 2022, the Company entered into a 10 year master services agreement ("MSA") with a certain school district for FaaS to electrify their school bus fleet. A statement of work (“SOW”) for engineering, procurement and construction ("EPC") was also executed in conjunction with the MSA. As part of this SOW, the Company will provide electric vehicle supply equipment ("EVSE") and related warranties, infrastructure engineering and construction, installation of EVSE, and subscription services to Nuvve’s V2G GIVe platform. The MSA has both lease and non-lease components. The lease component is the EVSE and non-lease components are the EPCs. The Company accounted for the lease components as a sale-type lease with the investment in lease of $117,436 and $97,054 at June 30, 2023 and December 31, 2022, respectively.
Lease income are as follows:
Three Months Ended June 30,Three Months Ended June 30,Six Months Ended June 30,Six Months Ended June 30,
Classification2023202220232022
Lease incomeProducts and services $24,027 $— $24,027 $— 
Interest incomeProducts and services 3,835 6,430 — 
Total lease income$27,862 $— $30,457 $—