Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
 3 Months Ended
Mar. 31, 2024
Leases [Abstract]  
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
March 31, 2024 December 31, 2023
Operating Leases:
Operating lease assets $ 69,348  $ 58,586 
Current portions of operating lease liabilities $ 14,220  $ 13,569 
Long-term portions of operating lease liabilities 50,710  42,258 
Total operating lease liabilities $ 64,930  $ 55,827 
Weighted-average remaining lease term 19 years 18 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 26,736  $ 27,262 
Current portions of financing lease liabilities $ 1,027  $ 871 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 12,871  13,057 
Total financing lease liabilities $ 13,898  $ 13,928 
Weighted-average remaining lease term 13 years 13 years
Weighted-average discount rate 12.05  % 12.05  %
The costs related to our leases were as follows:
Three Months Ended March 31,
2024 2023
Operating Leases:
Operating lease costs $ 3,056  $ 2,120 
Financing Leases:
Amortization expense 526  526 
Interest on lease liabilities 392  444 
Total lease costs $ 3,974  $ 3,090 

Supplemental cash flow information related to our leases was as follows:
Three Months Ended March 31,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 4,932  $ 1,852 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$ 12,736  $ 1,319 
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2024 $ 12,766  $ 2,207 
2025 12,403  2,213 
2026 7,093  2,054 
2027 6,006  1,922 
2028 5,061  1,955 
Thereafter 61,421  15,935 
Total minimum lease payments 104,750  26,286 
Less: interest 39,820  12,388 
Present value of lease liabilities $ 64,930  $ 13,898 
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 March 31, 2024 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement 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 three months ended March 31, 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 one energy assets for $4,444 in cash proceeds under this facility during the three months ended March 31, 2024. As of March 31, 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 $57 and $57 for the three months ended March 31, 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. As of March 31, 2024, 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 of this default.
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
March 31, 2024 December 31, 2023
Operating Leases:
Operating lease assets $ 69,348  $ 58,586 
Current portions of operating lease liabilities $ 14,220  $ 13,569 
Long-term portions of operating lease liabilities 50,710  42,258 
Total operating lease liabilities $ 64,930  $ 55,827 
Weighted-average remaining lease term 19 years 18 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 26,736  $ 27,262 
Current portions of financing lease liabilities $ 1,027  $ 871 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 12,871  13,057 
Total financing lease liabilities $ 13,898  $ 13,928 
Weighted-average remaining lease term 13 years 13 years
Weighted-average discount rate 12.05  % 12.05  %
The costs related to our leases were as follows:
Three Months Ended March 31,
2024 2023
Operating Leases:
Operating lease costs $ 3,056  $ 2,120 
Financing Leases:
Amortization expense 526  526 
Interest on lease liabilities 392  444 
Total lease costs $ 3,974  $ 3,090 

Supplemental cash flow information related to our leases was as follows:
Three Months Ended March 31,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 4,932  $ 1,852 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$ 12,736  $ 1,319 
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2024 $ 12,766  $ 2,207 
2025 12,403  2,213 
2026 7,093  2,054 
2027 6,006  1,922 
2028 5,061  1,955 
Thereafter 61,421  15,935 
Total minimum lease payments 104,750  26,286 
Less: interest 39,820  12,388 
Present value of lease liabilities $ 64,930  $ 13,898 
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 March 31, 2024 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement 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 three months ended March 31, 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 one energy assets for $4,444 in cash proceeds under this facility during the three months ended March 31, 2024. As of March 31, 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 $57 and $57 for the three months ended March 31, 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. As of March 31, 2024, 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 of this default.
LEASES LEASES
The table below sets forth supplemental condensed consolidated balance sheet information related to our leases:
March 31, 2024 December 31, 2023
Operating Leases:
Operating lease assets $ 69,348  $ 58,586 
Current portions of operating lease liabilities $ 14,220  $ 13,569 
Long-term portions of operating lease liabilities 50,710  42,258 
Total operating lease liabilities $ 64,930  $ 55,827 
Weighted-average remaining lease term 19 years 18 years
Weighted-average discount rate 6.6  % 6.6  %
Financing Leases:
Energy assets $ 26,736  $ 27,262 
Current portions of financing lease liabilities $ 1,027  $ 871 
Long-term financing lease liabilities, net of current portion, unamortized discount and debt issuance costs 12,871  13,057 
Total financing lease liabilities $ 13,898  $ 13,928 
Weighted-average remaining lease term 13 years 13 years
Weighted-average discount rate 12.05  % 12.05  %
The costs related to our leases were as follows:
Three Months Ended March 31,
2024 2023
Operating Leases:
Operating lease costs $ 3,056  $ 2,120 
Financing Leases:
Amortization expense 526  526 
Interest on lease liabilities 392  444 
Total lease costs $ 3,974  $ 3,090 

Supplemental cash flow information related to our leases was as follows:
Three Months Ended March 31,
2024 2023
Cash paid for amounts included in the measurement of operating lease liabilities $ 4,932  $ 1,852 
Right-of-use assets (“ROU”) obtained in exchange for new operating lease liabilities (1)
$ 12,736  $ 1,319 
(1) Includes non-monetary lease transactions of $10,378. See disclosure below for additional information.
The table below sets forth our estimated minimum future lease obligations under our leases:
  Operating Leases Financing Leases
Year ended December 31,  
2024 $ 12,766  $ 2,207 
2025 12,403  2,213 
2026 7,093  2,054 
2027 6,006  1,922 
2028 5,061  1,955 
Thereafter 61,421  15,935 
Total minimum lease payments 104,750  26,286 
Less: interest 39,820  12,388 
Present value of lease liabilities $ 64,930  $ 13,898 
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 March 31, 2024 and relates to lease payments to be made over a 20-year period. We are in process of modifying the terms of this agreement 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 three months ended March 31, 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 one energy assets for $4,444 in cash proceeds under this facility during the three months ended March 31, 2024. As of March 31, 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 $57 and $57 for the three months ended March 31, 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. As of March 31, 2024, 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 of this default.