LEASES (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Schedule of Assets and Liabilities

The components of operating and finance leases are presented on the Company’s Condensed Consolidated Balance Sheets as follows (in thousands):

	Financial statement line item	September 30, 2024		December 31, 2023
Assets:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	74,733	$	7,844
Finance lease right-of-use assets	Property, plant and equipment, net	$	6,220	$	16,268
Liabilities:
Operating lease liabilities,    current portion	Operating lease liabilities,    current portion	$	7,486	$	77
Operating lease liabilities, net    of current portion	Operating lease liabilities, net    of current portion	$	65,335	$	1,512
Finance lease liabilities, current portion	Finance lease liabilities, current portion	$	2,380	$	19,771
Finance lease liabilities, net of    current portion	Finance lease liabilities, net of current portion	$	4	$	35,745

Schedule of Lease Cost

The components of lease expense were as follows (in thousands):

		Three Months Ended September 30,
	Financial statement line item	2024		2023
Operating lease expense	Cost of HPC hosting services	$	4,833	$	—
Operating lease expense	General and administrative expenses	(1,005)		77
Short-term lease expense	General and administrative expenses	68		161
Finance lease expense:
Amortization of right-of-use assets	Cost of revenue	231		2,580
Interest on lease liabilities	Interest expense, net	91		766
Total finance lease expense		322		3,346
Total lease expense		$	4,218	$	3,584

		Nine Months Ended September 30,
	Financial statement line item	2024		2023
Operating lease expense	Cost of HPC hosting services	$	7,930	$	—
Operating lease expense	General and administrative expenses	1,405		675
Short-term lease expense	General and administrative expenses	262		523
Finance lease expense:
Amortization of right-of-use assets	Cost of revenue	880		9,708
Interest on lease liabilities	Interest expense, net	1,132		1,508
Total finance lease expense		2,012		11,216
Total lease expense		$	11,609	$	12,414

Information relating to the lease term and discount rate is as follows:

	September 30, 2024		September 30, 2023
Weighted Average Remaining Lease Term (Years)
Operating leases	6.9		15.4
Finance leases	1.0		1.3
Weighted Average Discount Rate
Operating leases	9.3	%	7.1	%
Finance leases	12.5	%	12.9	%

Schedule of Supplemental Cash Flow Information

Information relating to lease payments is as follows (in thousands):

	Nine Months Ended September 30,
	2024		2023
Lease Payments
Operating lease payments	$	5,414	$	499
Finance lease payments1	$	7,147	$	3,501

1 Approximately $4.6 million of finance lease liabilities were reinstated pursuant to the Plan of Reorganization. Of the $7.1 million of finance lease payments made during the nine months ended September 30, 2024, $4.4 million related to cure payments from emergence on the Effective Date.

Schedule of Operating Lease Liability, Maturity

The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at September 30, 2024, and thereafter (in thousands):

	Operating leases		Finance leases
Remaining 2024	$	3,392	$	685
2025	13,891		1,855
2026	14,302		3
2027	14,725		—
2028	15,160		—
Thereafter	38,199		—
Total lease payments	99,669		2,543
Less: imputed interest	26,848		159
Total	$	72,821	$	2,384

Schedule of Finance Lease Liability, Maturity

The Company’s minimum payments under noncancelable operating and finance leases having initial terms and bargain renewal periods in excess of one year are as follows at September 30, 2024, and thereafter (in thousands):

	Operating leases		Finance leases
Remaining 2024	$	3,392	$	685
2025	13,891		1,855
2026	14,302		3
2027	14,725		—
2028	15,160		—
Thereafter	38,199		—
Total lease payments	99,669		2,543
Less: imputed interest	26,848		159
Total	$	72,821	$	2,384

Schedule of Components of Lease Revenue

The components of lease revenue were as follows (in thousands):

	Three Months Ended September 30, 2024		Nine Months Ended September 30, 2024
Lease Revenue
Operating lease revenue	$	7,806	$	11,625
Variable lease revenue	2,532		4,232
Total lease revenue	$	10,338	$	15,857

Schedule of Payments to be Received, Maturity

The following table represents the maturity analysis of operating lease payments expected to be received at September 30, 2024, and thereafter (in thousands):

	Operating leases
Remaining 2024	$	3,680
2025	22,577
2026	23,254
2027	23,952
2028	24,670
Thereafter	58,174
Total	$	156,307