Leases

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Leases

Leases

The Company leases machinery, manufacturing facilities, office space, land, and equipment under both operating and finance leases. Lease assets and lease liabilities as of December 31, 2022 and 2021 were as follows:

		December 31,
	Classification on Balance Sheet	2022		2021
Assets
ROU operating lease assets	Operating lease right-of-use asset, net	$	4,316	$	3,468
Finance lease assets	Property, plant and equipment, net	153		28
Total lease assets		$	4,469	$	3,496
		December 31,
	Classification on Balance Sheet	2022		2021
Liabilities
Current
Operating lease liability	Operating lease liability, current	$	1,106	$	1,084
Finance lease liability	Other current liabilities	32		8
Long-term
Operating lease liability	Operating lease liability	4,130		3,224
Finance lease liability	Other liabilities	126		17
Total lease liabilities		$	5,394	$	4,333

Operating lease costs for the years ended December 31, 2022 and 2021, were $1,370 and $1,158, respectively. As of December 31, 2022 and 2021, the weighted average remaining term (in years) for the operating leases was 3.82 and 4.15 years, respectively and the weighted average discount rate was 10.4% and 3.3%, respectively. As of December 31, 2022 and 2021, the weighted average remaining term (in years) for the finance leases was 3.94 and 3.47 years, respectively, and the weighted average discount rate was 19.9% and 12.5%, respectively.

Future minimum lease payments as of December 31, 2022 were as follows:

	Operating leases		Finance leases		Total
2023	$	1,538	$	60	$	1,598
2024	1,617		60		1,677
2025	1,701		55		1,756
2026	1,420		35		1,455
2027	—		19		19
Total minimum lease payments	$	6,276	$	229	$	6,505
Less amounts representing interest	(1,040)		(71)		(1,111)
Present value of minimum lease payments	$	5,236	$	158	$	5,394

Lessor

The Company currently leases BESS 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 years ended December 31, 2022 and 2021, the Company recognized revenue of $1,166 and $353 from the sales-type lease, respectively. Net sales-type lease receivables of $1,471 and $347, net of unearned finance income are recorded under other assets on the consolidated balance sheets as of December 31, 2022 and 2021, respectively.

Leases

Leases

The Company leases machinery, manufacturing facilities, office space, land, and equipment under both operating and finance leases. Lease assets and lease liabilities as of December 31, 2022 and 2021 were as follows:

		December 31,
	Classification on Balance Sheet	2022		2021
Assets
ROU operating lease assets	Operating lease right-of-use asset, net	$	4,316	$	3,468
Finance lease assets	Property, plant and equipment, net	153		28
Total lease assets		$	4,469	$	3,496
		December 31,
	Classification on Balance Sheet	2022		2021
Liabilities
Current
Operating lease liability	Operating lease liability, current	$	1,106	$	1,084
Finance lease liability	Other current liabilities	32		8
Long-term
Operating lease liability	Operating lease liability	4,130		3,224
Finance lease liability	Other liabilities	126		17
Total lease liabilities		$	5,394	$	4,333

Operating lease costs for the years ended December 31, 2022 and 2021, were $1,370 and $1,158, respectively. As of December 31, 2022 and 2021, the weighted average remaining term (in years) for the operating leases was 3.82 and 4.15 years, respectively and the weighted average discount rate was 10.4% and 3.3%, respectively. As of December 31, 2022 and 2021, the weighted average remaining term (in years) for the finance leases was 3.94 and 3.47 years, respectively, and the weighted average discount rate was 19.9% and 12.5%, respectively.

Future minimum lease payments as of December 31, 2022 were as follows:

	Operating leases		Finance leases		Total
2023	$	1,538	$	60	$	1,598
2024	1,617		60		1,677
2025	1,701		55		1,756
2026	1,420		35		1,455
2027	—		19		19
Total minimum lease payments	$	6,276	$	229	$	6,505
Less amounts representing interest	(1,040)		(71)		(1,111)
Present value of minimum lease payments	$	5,236	$	158	$	5,394

Lessor

The Company currently leases BESS 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 years ended December 31, 2022 and 2021, the Company recognized revenue of $1,166 and $353 from the sales-type lease, respectively. Net sales-type lease receivables of $1,471 and $347, net of unearned finance income are recorded under other assets on the consolidated balance sheets as of December 31, 2022 and 2021, respectively.

Leases

Leases

The Company leases machinery, manufacturing facilities, office space, land, and equipment under both operating and finance leases. Lease assets and lease liabilities as of December 31, 2022 and 2021 were as follows:

		December 31,
	Classification on Balance Sheet	2022		2021
Assets
ROU operating lease assets	Operating lease right-of-use asset, net	$	4,316	$	3,468
Finance lease assets	Property, plant and equipment, net	153		28
Total lease assets		$	4,469	$	3,496
		December 31,
	Classification on Balance Sheet	2022		2021
Liabilities
Current
Operating lease liability	Operating lease liability, current	$	1,106	$	1,084
Finance lease liability	Other current liabilities	32		8
Long-term
Operating lease liability	Operating lease liability	4,130		3,224
Finance lease liability	Other liabilities	126		17
Total lease liabilities		$	5,394	$	4,333

Operating lease costs for the years ended December 31, 2022 and 2021, were $1,370 and $1,158, respectively. As of December 31, 2022 and 2021, the weighted average remaining term (in years) for the operating leases was 3.82 and 4.15 years, respectively and the weighted average discount rate was 10.4% and 3.3%, respectively. As of December 31, 2022 and 2021, the weighted average remaining term (in years) for the finance leases was 3.94 and 3.47 years, respectively, and the weighted average discount rate was 19.9% and 12.5%, respectively.

Future minimum lease payments as of December 31, 2022 were as follows:

	Operating leases		Finance leases		Total
2023	$	1,538	$	60	$	1,598
2024	1,617		60		1,677
2025	1,701		55		1,756
2026	1,420		35		1,455
2027	—		19		19
Total minimum lease payments	$	6,276	$	229	$	6,505
Less amounts representing interest	(1,040)		(71)		(1,111)
Present value of minimum lease payments	$	5,236	$	158	$	5,394

Lessor

The Company currently leases BESS 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 years ended December 31, 2022 and 2021, the Company recognized revenue of $1,166 and $353 from the sales-type lease, respectively. Net sales-type lease receivables of $1,471 and $347, net of unearned finance income are recorded under other assets on the consolidated balance sheets as of December 31, 2022 and 2021, respectively.