Leases

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

Leases

As of September 30, 2022, and December 31, 2021, the Company’s operating lease right of use assets are $16.8 million and $12.8 million, respectively. As of September 30, 2022, the Company’s finance lease right of use assets are $1.4 million, the Company did not have any finance lease right of use assets as of December 31, 2021.

The following table summarizes the components of lease expense (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Operating lease cost	$	1,210	$	610	$	3,434	$	1,058
Short-term lease cost	187		241		636		523
Finance lease cost:
Amortization of right-of-use assets	61		—		160		—
Interest on lease liabilities	5		—		13		—
Total lease cost	$	1,463	$	851	$	4,243	$	1,581

The following table summarizes supplemental information related to leases (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2022			September 30, 2021		September 30, 2022			September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,150		$	723	$	3,277		$	1,506
Finance cash flows from financing leases	66			—		173			—
Right-of-use assets obtained in exchange for new operating lease liabilities	—			3,515		6,895			8,141
Right-of-use assets obtained in exchange for new finance lease liabilities	1,376			—		1,376			—
Weighted average remaining lease term:
Operating leases	5.4					5.4
Finance leases	4.3					4.3
Weighted average discount rate:
Operating leases	4.6		%			4.6		%
Finance leases	4.7		%			4.7		%

The additional right of use assets was primarily acquired in the Tree Technologies, Energica, WAVE, and Solectrac acquisitions. The facilities acquired are primarily office buildings and warehouses in Asia, Europe and U.S. locations where they conduct business.

The future minimum lease payments required under operating and financing lease obligations as of September 30, 2022, having initial or remaining non-cancelable lease terms in excess of one year are summarized as follows (in thousands):

September 30, 2022	Operating Leases		Finance Leases		Total
2022 (excluding the nine months ended September 30, 2022)	$	1,165	$	114	$	1,279
2023	4,707		409		5,116
2024	3,453		409		3,862
2025	3,187		409		3,596
2026	2,610		282		2,892
2026 and thereafter	4,354		160		4,514
Total undiscounted lease liabilities	19,476		1,783		21,259
Less: imputed interest	(2,790)		(182)		(2,972)
Net lease liabilities	$	16,686	$	1,601	$	18,287

In the nine months ended September 30, 2022, the Company executed two finance leases, a five-year automobile lease and short-term service center, through the acquisition of Energica, a manufacturer of high-performance electric motorcycles and two operating leases with a twelve-year and six-year term on the Company’s manufacturing and general headquarters located in Italy. In Asia, the Company acquired a two-year operating lease and renewed a two-year lease for a general office building for a manufacturing facility for EV bikes, scooters, and batteries. In the U.S., the Company acquired two operating leases, one of which has a two-year term for a general office building and the other lease, has a ten-year life for a warehouse and office facility used primarily for fabrication, assembly, production, and storage of battery-powered electric tractors. In addition, the Company acquired twelve finance leases on trucks purchased for business purposes with a four-year term for each vehicle.

As of September 30, 2022, the Company has entered four finance leases that have not yet commenced.

Leases

Leases

As of September 30, 2022, and December 31, 2021, the Company’s operating lease right of use assets are $16.8 million and $12.8 million, respectively. As of September 30, 2022, the Company’s finance lease right of use assets are $1.4 million, the Company did not have any finance lease right of use assets as of December 31, 2021.

The following table summarizes the components of lease expense (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Operating lease cost	$	1,210	$	610	$	3,434	$	1,058
Short-term lease cost	187		241		636		523
Finance lease cost:
Amortization of right-of-use assets	61		—		160		—
Interest on lease liabilities	5		—		13		—
Total lease cost	$	1,463	$	851	$	4,243	$	1,581

The following table summarizes supplemental information related to leases (in thousands):

	Three Months Ended					Nine Months Ended
	September 30, 2022			September 30, 2021		September 30, 2022			September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,150		$	723	$	3,277		$	1,506
Finance cash flows from financing leases	66			—		173			—
Right-of-use assets obtained in exchange for new operating lease liabilities	—			3,515		6,895			8,141
Right-of-use assets obtained in exchange for new finance lease liabilities	1,376			—		1,376			—
Weighted average remaining lease term:
Operating leases	5.4					5.4
Finance leases	4.3					4.3
Weighted average discount rate:
Operating leases	4.6		%			4.6		%
Finance leases	4.7		%			4.7		%

The additional right of use assets was primarily acquired in the Tree Technologies, Energica, WAVE, and Solectrac acquisitions. The facilities acquired are primarily office buildings and warehouses in Asia, Europe and U.S. locations where they conduct business.

The future minimum lease payments required under operating and financing lease obligations as of September 30, 2022, having initial or remaining non-cancelable lease terms in excess of one year are summarized as follows (in thousands):

September 30, 2022	Operating Leases		Finance Leases		Total
2022 (excluding the nine months ended September 30, 2022)	$	1,165	$	114	$	1,279
2023	4,707		409		5,116
2024	3,453		409		3,862
2025	3,187		409		3,596
2026	2,610		282		2,892
2026 and thereafter	4,354		160		4,514
Total undiscounted lease liabilities	19,476		1,783		21,259
Less: imputed interest	(2,790)		(182)		(2,972)
Net lease liabilities	$	16,686	$	1,601	$	18,287

In the nine months ended September 30, 2022, the Company executed two finance leases, a five-year automobile lease and short-term service center, through the acquisition of Energica, a manufacturer of high-performance electric motorcycles and two operating leases with a twelve-year and six-year term on the Company’s manufacturing and general headquarters located in Italy. In Asia, the Company acquired a two-year operating lease and renewed a two-year lease for a general office building for a manufacturing facility for EV bikes, scooters, and batteries. In the U.S., the Company acquired two operating leases, one of which has a two-year term for a general office building and the other lease, has a ten-year life for a warehouse and office facility used primarily for fabrication, assembly, production, and storage of battery-powered electric tractors. In addition, the Company acquired twelve finance leases on trucks purchased for business purposes with a four-year term for each vehicle.

As of September 30, 2022, the Company has entered four finance leases that have not yet commenced.