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

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Finance lease cost:
Amortization of right-of-use assets (1)	$	470	$	464	$	1,395	$	930
Interest on lease liabilities (1)	423		297		948		627
Operating lease cost	139		64		416		192
Short-term lease cost	—		377		1,449		1,003
Variable lease cost (2)	—		94		951		164
Total lease cost	$	1,032	$	1,296	$	5,159	$	2,916

(1)Amortization and interest on finance lease liabilities capitalized as construction-in-progress totaled $0.3 million and $2.0 million during the three and nine months ended September 30, 2022, respectively, and nil and $0.8 million during the three and nine months ended September 30, 2021, respectively. Total capitalized amounts of $2.8 million are included in "Property, plant and equipment, net" in the Consolidated Balance Sheets related to NW Iowa RNG facilities as of September 30, 2022.

(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.


	Nine Months Ended September 30,
	2022		2021
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	627	$	627
Operating cash flows from operating leases	$	431	$	192
Finance cash flows from finance leases	$	4,316	$	5,975
Right-of-use asset obtained in exchange for new finance lease liabilities	$	834	$	28,416
Right-of-use asset obtained in exchange for new operating lease liabilities	$	—	$	1,611
Weighted-average remaining lease term, finance lease (months)	208		225
Weighted-average remaining lease term, operating leases (months)	66		88
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)	$	303	$	1,772
2023	528		1,576
2024	305		2,730
2025	315		1,744
2026	324		1,760
2027 and thereafter	706		30,499
Total	2,481		40,081
Less: Amounts representing present value discounts	317		21,607
Total lease liabilities	2,164		18,474
Less: current portion	430		2,125
Long-term portion	$	1,734	$	16,349

Finance Lease, Liability, Fiscal Year Maturity


Year ending December 31,	Operating Leases		Finance Leases
2022 (remaining)	$	303	$	1,772
2023	528		1,576
2024	305		2,730
2025	315		1,744
2026	324		1,760
2027 and thereafter	706		30,499
Total	2,481		40,081
Less: Amounts representing present value discounts	317		21,607
Total lease liabilities	2,164		18,474
Less: current portion	430		2,125
Long-term portion	$	1,734	$	16,349