Leases, Right-of-Use Assets and Related Liabilities (Tables)

6 Months Ended

Jun. 30, 2022

The following four tables present the (a) costs by lease category, (b) other quantitative information, and (c) future minimum payments under non-cancelable financing and operating leases as they relate to the Company’s leases (in thousands), except for weighted averages:


	Three months Ended June 30,
	2022		2021
Finance lease cost:
Amortization of right-of-use assets (1)	$	488	$	447
Interest on lease liabilities (1)	251		316
Operating lease cost	139		67
Short-term lease cost	572		495
Variable lease cost (2)	73		31
Total lease cost	$	1,523	$	1,356

1.Amortization and interest on finance lease liabilities of $0.7 million and $0.8 million was capitalized as construction-in-progress for the three months ended June 30, 2022, and June 30, 2021, respectively.

2.Represents amounts incurred in excess of minimum payments, including payments for common area expenses under our office and research facility lease, and additional amounts due under our NW Iowa RNG leases based on the number of cows maintained by the owners above the minimum required by the contracts of the respective facilities.


	Six Months Ended June 30,
	2022		2021
Finance lease cost:
Amortization of right-of use assets (1)	$	949	$	458
Interest on lease liabilities (1)	525		316
Operating lease cost	277		67
Short-Term lease cost	1,449		495
Variable lease cost (2)	951		31
Total lease cost	$	4,151	$	1,367

1.$1.5 million and $0.8 million of amortization and interest expense for the six months ended June 30, 2022, and 2021, respectively, were capitalized as part of construction in progress. The accumulated capitalized amounts of $3.7 million is included in "Property, plant and equipment, net" in the Consolidated Balance Sheets as the related NW Iowa RNG facilities were still under construction on June 30, 2022.


	Six Months Ended June 30,
	2022		2021
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	241	$	321
Operating cash flows from operating leases	$	359	$	128
Finance cash flows from finance leases	$	87	$	3,046
Right-of-use asset obtained in exchange for new finance lease liabilities	$	834	$	27,775
Right-of-use asset obtained in exchange for new operating lease liabilities	$	—	$	1,562
Weighted-average remaining lease term, finance lease (months)	216		218
Weighted-average remaining lease term, operating leases (months)	68		91
Weighted-average discount rate - finance leases (1)	10%		5%
Weighted-average discount rate - operating leases (1)	5%		5%

(1)Our leases do not provide an implicit interest rate, we calculate the lease liability at lease commencement as the present value of unpaid lease payments using our estimated incremental borrowing rate. The incremental borrowing rate represents the rate of interest that we would have to pay to borrow an amount equal to the lease payments on a collateralized basis over a similar term and is determined using a portfolio approach based on information available at the commencement date of the lease.

Operating Lease, Liability, Fiscal Year Maturity


Year ending December 31,	Operating Leases		Finance Leases
2022 (remaining)	$	376	$	7,282
2023	529		1,554
2024	306		2,730
2025	315		1,744
2026	325		1,760
2027 and thereafter	707		29,583
Total	2,558		44,653
Less: Amounts representing present value discounts	349		22,018
Total lease liabilities	2,209		22,635
Less: current portion	423		6,293
Long-term portion	$	1,786	$	16,342

Finance Lease, Liability, Fiscal Year Maturity


Year ending December 31,	Operating Leases		Finance Leases
2022 (remaining)	$	376	$	7,282
2023	529		1,554
2024	306		2,730
2025	315		1,744
2026	325		1,760
2027 and thereafter	707		29,583
Total	2,558		44,653
Less: Amounts representing present value discounts	349		22,018
Total lease liabilities	2,209		22,635
Less: current portion	423		6,293
Long-term portion	$	1,786	$	16,342