Quarterly report pursuant to Section 13 or 15(d)

LEASES

v3.24.3
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.