Derivatives (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative assets and income (loss) related to derivatives

Sunlight’s derivative asset is recorded at fair value in the accompanying Consolidated Balance Sheets as follows:

		Successor		Predecessor
	Balance Sheet Location	December 31, 2021		December 31, 2020
Contract derivative 1	Other assets	$	1,076	$	1,435
Contract derivative 2	Other assets	335		—
		$	1,411	$	1,435

The following table summarizes all income (loss) recorded in relation to derivatives:

	Successor		Predecessor
	For the Period July 10, 2021 to December 31, 2021		For the Period January 1, 2021 to July 9, 2021		For the Year Ended December 31, 2020
Change in fair value of contract derivatives, net
Contract derivative 1	$	573	$	(932)	$	1,435
Contract derivative 2	65		270		n.a.
	$	638	$	(662)	$	1,435
Realized gains on contract derivatives, net
Contract derivative 1	$	2,789	$	2,950	$	103
Contract derivative 2	77		42		n.a.
	$	2,866	$	2,992	$	103

Notional amounts of derivatives

The following table summarizes notional amounts related to derivatives:

	Successor		Predecessor
	December 31, 2021		December 31, 2020
Contract derivative 1(a)	$	38,879	$	59,770
Contract derivative 2(b)	37,891		n.a.

a.Represents the carrying value of Indirect Channel Loans for the purchase and installation of home improvements other than residential solar energy systems held by Sunlight’s Bank Partner.

b.Represents the unpaid principal balance of the Loans at time of sale to the Indirect Channel Loan Purchaser for which Sunlight is entitled to income in the event of prepayment of the Indirect Channel Loan.