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Leases
 3 Months Ended
Mar. 31, 2022
Leases [Abstract]  
Leases Leases
On January 1, 2021, the Company adopted ASU 2016-02, Leases (“Topic 842”), and the related amendments (collectively “ASC 842”). The Company elected the modified retrospective approach, under which results and disclosures for periods before January 1, 2021 were not adjusted for the new standard and the cumulative effect of the change in accounting, is recognized through accumulated deficit at the date of adoption.
Lessee
The Company leases machinery, manufacturing facilities, office space, land, and equipment under both operating and finance leases. Lease assets and lease liabilities as of March 31, 2022 and December 31, 2021 were as follows:
LeasesClassification on Balance Sheet
March 31, 2022
December 31, 2021
Assets
ROU - operating lease assetsOperating lease right-of-use asset, net$4,989 $3,468 
Finance lease assetsProperty, plant and equipment, net21 28 
Total lease assets$5,010 $3,496 
Classification on Balance Sheet
March 31, 2022
December 31, 2021
Liabilities
Current
    Operating lease liabilityOperating lease liability, current portion$899 $1,084 
    Finance lease liabilityOther current liabilities6 8 
Non-Current
Operating lease liabilityOperating lease liability, long-term4,943 3,224 
     Finance lease liabilityOther liabilities15 17 
Total lease liabilities $5,863 $4,333 
Operating lease costs for the three months ended March 31, 2022 and 2021 were $192 and $159, respectively. As of March 31, 2022, the weighted average remaining term (in years) for the operating lease was 4.55 years and the weighted average discount rate was 9.8%. The weighted average remaining term (in years) for the finance lease was 3.70 years and the weighted average discount rate was 13.7%.
Future maturity of lease liability are as follows:
Operating leaseFinancing leaseTotal
Remainder of 2022$1,022 $7 $1,029 
20231,543 8 1,551 
20241,623 8 1,631 
20251,707 8 1,715 
20261,336 1 1,337 
Later years— — — 
Total minimum lease payments$7,231 $32 $7,263 
Less amounts representing interest1,389 11 1,400 
Present value of minimum lease payments$5,842 $21 $5,863 
Lessor
The Company leases energy storage systems to one customer with a 20-year term through sales-type leases. Leases offered by the Company include purchase options during the lease term with a bargain purchase option at the end of the term. At the time of accepting a lease that qualifies as a sales-type lease, the Company records the gross amount of lease payments receivable, estimated residual value of the leased equipment and unearned finance income. The unearned finance income is recognized interest income over the lease term using the interest method.
For the three months ended March 31, 2022 and 2021, the Company recognized revenue of $1,038 and $— from the sales-type lease, respectively. Net sales-type lease receivables of $1,302 and $347, net of unearned finance income are recorded under other assets on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively.
Leases Leases
On January 1, 2021, the Company adopted ASU 2016-02, Leases (“Topic 842”), and the related amendments (collectively “ASC 842”). The Company elected the modified retrospective approach, under which results and disclosures for periods before January 1, 2021 were not adjusted for the new standard and the cumulative effect of the change in accounting, is recognized through accumulated deficit at the date of adoption.
Lessee
The Company leases machinery, manufacturing facilities, office space, land, and equipment under both operating and finance leases. Lease assets and lease liabilities as of March 31, 2022 and December 31, 2021 were as follows:
LeasesClassification on Balance Sheet
March 31, 2022
December 31, 2021
Assets
ROU - operating lease assetsOperating lease right-of-use asset, net$4,989 $3,468 
Finance lease assetsProperty, plant and equipment, net21 28 
Total lease assets$5,010 $3,496 
Classification on Balance Sheet
March 31, 2022
December 31, 2021
Liabilities
Current
    Operating lease liabilityOperating lease liability, current portion$899 $1,084 
    Finance lease liabilityOther current liabilities6 8 
Non-Current
Operating lease liabilityOperating lease liability, long-term4,943 3,224 
     Finance lease liabilityOther liabilities15 17 
Total lease liabilities $5,863 $4,333 
Operating lease costs for the three months ended March 31, 2022 and 2021 were $192 and $159, respectively. As of March 31, 2022, the weighted average remaining term (in years) for the operating lease was 4.55 years and the weighted average discount rate was 9.8%. The weighted average remaining term (in years) for the finance lease was 3.70 years and the weighted average discount rate was 13.7%.
Future maturity of lease liability are as follows:
Operating leaseFinancing leaseTotal
Remainder of 2022$1,022 $7 $1,029 
20231,543 8 1,551 
20241,623 8 1,631 
20251,707 8 1,715 
20261,336 1 1,337 
Later years— — — 
Total minimum lease payments$7,231 $32 $7,263 
Less amounts representing interest1,389 11 1,400 
Present value of minimum lease payments$5,842 $21 $5,863 
Lessor
The Company leases energy storage systems to one customer with a 20-year term through sales-type leases. Leases offered by the Company include purchase options during the lease term with a bargain purchase option at the end of the term. At the time of accepting a lease that qualifies as a sales-type lease, the Company records the gross amount of lease payments receivable, estimated residual value of the leased equipment and unearned finance income. The unearned finance income is recognized interest income over the lease term using the interest method.
For the three months ended March 31, 2022 and 2021, the Company recognized revenue of $1,038 and $— from the sales-type lease, respectively. Net sales-type lease receivables of $1,302 and $347, net of unearned finance income are recorded under other assets on the condensed consolidated balance sheets as of March 31, 2022 and December 31, 2021, respectively.