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LEASES
 12 Months Ended
Dec. 31, 2022
Leases [Abstract]  
LEASES LEASES
As of December 31, 2022 the Company leased land in Colton, California related to the development of hydrogen infrastructure, buildings for warehousing and office space in Arizona and in California, and equipment under noncancellable operating and finance leases expiring at various dates through February 2035. The Company's leases as of December 31, 2022, do not contain options to renew that the Company has deemed reasonably certain to exercise. The Company's lease agreements do not contain material residual value guarantees or material restrictive covenants.
In February 2018, the Company entered into a non-cancellable lease agreement and purchase option for its headquarters and R&D facility in Phoenix, Arizona. The lease commenced in September 2018, with a term of 11.75 years. During the third quarter of 2021, the Company issued a notice indicating its intent to exercise the purchase option for $25.1 million. As of the issuance of the notice, the lease liability was remeasured resulting in a $10.5 million remeasurement adjustment to the lease liability and a corresponding increase to the finance lease asset.
During the fourth quarter of 2021, the purchase of the headquarters and R&D facility closed resulting in the derecognition of the related finance lease liability balance of $24.7 million and reclassification of the finance lease asset balance to buildings. The purchase was financed with the issuance of a $25.0 million Promissory Note. During the second quarter of 2022, the Company sold the land and property related to the Company's headquarters for a purchase price of $52.5 million, and executed a concurrent lease back of the land and property, refer to Note 9, Debt and Finance Lease Liabilities.
The following table summarizes the effects of finance and operating lease costs in the Company's consolidated statements of operations for the year ended December 31, 2022:
Consolidated Statements of Operations CaptionYear Ended December 31,
202220212020
Operating lease cost:
Lease costResearch and development and Selling, general and administrative$1,815 $130 $— 
Variable lease cost(1)
Research and development and Selling, general and administrative212 26 — 
Total operating lease cost2,027 156 — 
Short-term lease costResearch and development and Selling, general and administrative1,744 1,155 19 
Finance lease cost:
Amortization of right of use assetsResearch and development and Selling, general and administrative469 2,758 3,312 
Interest on lease liabilitiesInterest income (expense), net72 789 782 
Variable lease cost(1)
Research and development and Selling, general and administrative55 738 744 
Total finance lease cost596 4,285 4,838 
Total lease cost$4,367 $5,596 $4,857 
(1)Variable lease costs were not included in the measurement of the operating and finance lease liabilities and primarily include property taxes, property insurance and common area maintenance expenses.
Supplemental balance sheet information related to leases is as follows:
ClassificationAs of December 31,
20222021
Assets
Finance lease assets, netProperty, plant and equipment, net$4,783 $570 
Operating lease assetsOther assets30,663 2,681 
Total lease assets$35,446 $3,251 
Liabilities
Current:
Finance lease liabilitiesDebt and finance lease liabilities, current$1,806 $140 
Operating lease liabilitiesAccrued expenses and other current liabilities2,786 475 
Non-current:
Finance lease liabilitiesLong-term debt and finance lease liabilities, net of current portion2,317 408 
Operating lease liabilitiesOperating lease liabilities28,223 2,263 
Total lease liabilities$35,132 $3,286 
As of December 31,
20222021
Weighted average remaining lease term (years)
Finance leases2.513.91
Operating leases10.564.81
Weighted average discount rate
Finance leases4.51 %4.69 %
Operating leases7.59 %4.00 %
Supplemental cash flow information related to leases is as follows:
As of December 31,
20222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow for finance leases$72 $789 
Operating cash flow for operating leases1,523 72 
Leased assets obtained in exchange for lease liabilities
Finance leases$1,547 $646 
Operating leases6,176 2,788 
Maturities of the Company's lease liabilities are as follows:
Years Ended December 31,Finance leasesOperating leasesTotal
2023$1,945 $5,001 $6,946 
20241,188 4,674 5,862 
2025973 3,893 4,866 
202696 3,966 4,062 
202740 3,451 3,491 
Thereafter181 25,340 25,521 
Total lease payments$4,423 $46,325 $50,748 
Less: imputed interest300 15,316 15,616 
Total lease liabilities$4,123 $31,009 $35,132 
Less: current portion1,806 2,786 4,592 
Long-term lease liabilities$2,317 $28,223 $30,540 
LEASES LEASES
As of December 31, 2022 the Company leased land in Colton, California related to the development of hydrogen infrastructure, buildings for warehousing and office space in Arizona and in California, and equipment under noncancellable operating and finance leases expiring at various dates through February 2035. The Company's leases as of December 31, 2022, do not contain options to renew that the Company has deemed reasonably certain to exercise. The Company's lease agreements do not contain material residual value guarantees or material restrictive covenants.
In February 2018, the Company entered into a non-cancellable lease agreement and purchase option for its headquarters and R&D facility in Phoenix, Arizona. The lease commenced in September 2018, with a term of 11.75 years. During the third quarter of 2021, the Company issued a notice indicating its intent to exercise the purchase option for $25.1 million. As of the issuance of the notice, the lease liability was remeasured resulting in a $10.5 million remeasurement adjustment to the lease liability and a corresponding increase to the finance lease asset.
During the fourth quarter of 2021, the purchase of the headquarters and R&D facility closed resulting in the derecognition of the related finance lease liability balance of $24.7 million and reclassification of the finance lease asset balance to buildings. The purchase was financed with the issuance of a $25.0 million Promissory Note. During the second quarter of 2022, the Company sold the land and property related to the Company's headquarters for a purchase price of $52.5 million, and executed a concurrent lease back of the land and property, refer to Note 9, Debt and Finance Lease Liabilities.
The following table summarizes the effects of finance and operating lease costs in the Company's consolidated statements of operations for the year ended December 31, 2022:
Consolidated Statements of Operations CaptionYear Ended December 31,
202220212020
Operating lease cost:
Lease costResearch and development and Selling, general and administrative$1,815 $130 $— 
Variable lease cost(1)
Research and development and Selling, general and administrative212 26 — 
Total operating lease cost2,027 156 — 
Short-term lease costResearch and development and Selling, general and administrative1,744 1,155 19 
Finance lease cost:
Amortization of right of use assetsResearch and development and Selling, general and administrative469 2,758 3,312 
Interest on lease liabilitiesInterest income (expense), net72 789 782 
Variable lease cost(1)
Research and development and Selling, general and administrative55 738 744 
Total finance lease cost596 4,285 4,838 
Total lease cost$4,367 $5,596 $4,857 
(1)Variable lease costs were not included in the measurement of the operating and finance lease liabilities and primarily include property taxes, property insurance and common area maintenance expenses.
Supplemental balance sheet information related to leases is as follows:
ClassificationAs of December 31,
20222021
Assets
Finance lease assets, netProperty, plant and equipment, net$4,783 $570 
Operating lease assetsOther assets30,663 2,681 
Total lease assets$35,446 $3,251 
Liabilities
Current:
Finance lease liabilitiesDebt and finance lease liabilities, current$1,806 $140 
Operating lease liabilitiesAccrued expenses and other current liabilities2,786 475 
Non-current:
Finance lease liabilitiesLong-term debt and finance lease liabilities, net of current portion2,317 408 
Operating lease liabilitiesOperating lease liabilities28,223 2,263 
Total lease liabilities$35,132 $3,286 
As of December 31,
20222021
Weighted average remaining lease term (years)
Finance leases2.513.91
Operating leases10.564.81
Weighted average discount rate
Finance leases4.51 %4.69 %
Operating leases7.59 %4.00 %
Supplemental cash flow information related to leases is as follows:
As of December 31,
20222021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow for finance leases$72 $789 
Operating cash flow for operating leases1,523 72 
Leased assets obtained in exchange for lease liabilities
Finance leases$1,547 $646 
Operating leases6,176 2,788 
Maturities of the Company's lease liabilities are as follows:
Years Ended December 31,Finance leasesOperating leasesTotal
2023$1,945 $5,001 $6,946 
20241,188 4,674 5,862 
2025973 3,893 4,866 
202696 3,966 4,062 
202740 3,451 3,491 
Thereafter181 25,340 25,521 
Total lease payments$4,423 $46,325 $50,748 
Less: imputed interest300 15,316 15,616 
Total lease liabilities$4,123 $31,009 $35,132 
Less: current portion1,806 2,786 4,592 
Long-term lease liabilities$2,317 $28,223 $30,540