Quarterly report pursuant to Section 13 or 15(d)

Energy Assets, Net

v3.24.1.u1
Energy Assets, Net
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
ENERGY ASSETS, NET ENERGY ASSETS, NET
Energy assets, net consisted of the following:
  March 31, 2024 December 31, 2023
Energy assets (1)
$ 2,170,223  $ 2,054,145 
Less - accumulated depreciation and amortization (381,654) (364,721)
Energy assets, net $ 1,788,569  $ 1,689,424 
(1) Includes financing lease assets (see Note 7), capitalized interest and asset retirement obligations (“ARO”) assets (see tables below). Also includes the energy asset projects acquired in January 2024. See section below for additional information.
August 2023 Purchase and Sale Agreement
On August 4, 2023, we entered into a purchase and sale agreement to acquire an energy asset project and to acquire 100% of the stock of Bright Canyon Energy Corporation (“BCE”) in a two-phased transaction. Phase 1, the purchase of the energy asset project, closed on August 4, 2023 and did not constitute a business in accordance with ASC 805-50, Business Combinations.
The purchase price for phase 1 was $87,964, of which $5,000 was paid in cash, $46,694 was financed through a seller’s note, and we assumed a construction loan on the energy asset project for $36,270. We also acquired cash of $11,206. During the year ended December 31, 2023, we paid $18,400 in principal on the sellers note. In January 2024, the purchase price was increased by $1,147 and we paid off the seller’s note in the amount of $29,441. We also assumed a land lease for the energy asset project.
On December 28, 2023, we executed an amended and restated purchase and sale agreement, which primarily revised the timing of payments on phase 2. In the second phase, which closed on January 12, 2024, we acquired BCE, including its interest in a consolidated joint venture and its interests in project subsidiaries developing or with rights to develop solar, battery, and microgrid assets for an adjusted purchase price of $47,956, of which $9,839 was paid in cash and $32,500 was financed through a seller’s note. The remaining balance due of $5,617 is included in accrued expenses and other current liabilities at March 31, 2024. We also assumed four land leases for the energy asset projects.
Phase 2, the purchase of the energy asset projects did not constitute a business in accordance with ASC 805-50, Business Combinations.
See Note 8 for additional information about these loans, Note 7 for information on the leases and Note 10 for potential additional commitments.
Depreciation and Amortization Expense
The following table sets forth our depreciation and amortization expense on energy assets, net of deferred grant amortization:
Three Months Ended March 31,
Location 2024 2023
Cost of revenues (2)
$ 17,124  $ 13,341 
(2) Includes depreciation and amortization on financing lease assets (see Note 7).
Capitalized Interest
The following table presents the interest costs relating to construction financing during the period of construction, which were capitalized as part of energy assets, net:
Three Months Ended March 31,
2024 2023
Capitalized interest $ 14,872  $ 6,376 

The following tables sets forth information related to our ARO assets and ARO liabilities:
Location March 31, 2024 December 31, 2023
ARO assets, net Energy assets, net $ 4,619  $ 4,800 
ARO liabilities, non-current Other liabilities $ 5,886  $ 5,960 

Three Months Ended March 31,
2024 2023
Depreciation expense of ARO assets $ 44  $ 55 
Accretion expense of ARO liabilities $ 66  $ 66