Leases

12 Months Ended

Dec. 31, 2022

Leases

Leases

21. Leases

The Group has operating leases for its PV stations office facilities, and certain warehouses. The Group's leases have remaining terms of less than one year to approximately twenty years. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Group recognizes lease expense for these leases on a straight-line basis over the lease term. The operating lease expenses were $2,395 and $1,772 for the years ended December 31, 2022 and 2021, respectively.

In July 2022, the Group made a decision that SJ US would pause its roofing and solar energy system installation business in the states of Florida, Texas, Nevada and Colorado, due to insufficient business volume and profitability in those four states. In August 2022, the Group provided its notice to terminate the leases for its offices in Colorado, Florida, Nevada and Texas to the respective landlords. The total lease termination costs for these four locations were about $150, which is included in general and administrative expense on the consolidated statement of operations for the year ended December 31, 2022. The Company derecognized $151 of right of use assets and $151 of lease liabilities as of the date of early termination. In accordance with the termination, the Company was released from all future rights and obligations under the lease.

Right-of-use assets, along with other long-lived assets, are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. In 2022, the Group identified indicators of impairment for long-lived assets held by SJ US due to gross loss generated from roofing and solar energy systems installation business. For right-of-use assets held by SJ US, the Group performed a recoverability test, comparing estimated undiscounted cash flows to the carrying value of the related long-lived assets within the asset group and considered that the carrying amount is not recoverable. The Group recorded an impairment charge of $1,585, for impairment of its right-of-use assets in its renewable energy solutions segment for the year ended December 31, 2022. These charges were recorded in impairment charges on long-lived assets in the Group’s consolidated statements of operations. For the year ended December 31, 2021, there were no impairment charges recorded related to long-lived assets.

Maturities of operating lease liabilities as of December 31, 2022 were as follow:

Maturity of Lease Liabilities		Operating Leases
	2023	$	2,571
	2024		2,200
	2025		2,558
	2026		2,689
	2027		1,869
	Thereafter		11,825
	Total lease payments		23,712
	Less: interest		(7,849	)
	Present value of lease payments	$	15,863
	Operating lease liabilities, current	$	1,607
	Operating lease liabilities, noncurrent	$	14,256

Supplemental information related to operating leases was as follows:

	For the years ended December 31,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities	$	2,395	$	1,772
New operating lease assets obtained in exchange for operating lease liabilities	$	3,450	$	8,502

As of December 31, 2022 and 2021, the operating leases had a weighted average remaining lease term of 12.7 years and 12.3 years, respectively, and a weighted average discount rate of 6.16% and 6.16%, respectively.