Global Clean Energy Holdings, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

COMMITMENTS AND CONTINGENCIES (Tables)

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of minimum required payments of the EPC deferred payments

The following table summarizes the minimum required payments of the EPC d

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rred payments as of June 30, 2023 assuming substantial completion as defined in the CTCI EPC Agreement is achieved in the first quarter of 2024:

	EPC deferred payments
2023	$	-
2024		70,845,152
2025		56,676,121
Total	$	127,521,273

Lease-Related Assets and Liabilities

We lease certain manufacturing equipment, warehouses, office space, and vehicles under finance and operating leases. The table below presents the lease-related assets and liabilities recorded on the balance sheet at June 30, 2023 and December 31, 2022:

Leases	Classification	As of June 30, 2023		As of December 31, 2022
Assets
Operating lease assets	Operating lease right-of-use assets	$	4,487,509	$	5,332,110
Total lease assets		$	4,487,509	$	5,332,110

Liabilities
Current
Operating	Current portion of operating lease obligations	$	2,280,158	$	1,897,303
Non-current
Operating	Operating lease obligations, net of current portion		2,040,484		3,090,002
Total lease liabilities		$	4,320,642	$	4,987,305

Lease Cost

The table below presents the components of lease costs for the three and six months ended June 30, 2023 and 2022:

Leases	Classification	Three months ended June 30, 2023		Three months ended June 30, 2022		Six months ended June 30, 2023		Six months ended June 30, 2022
Operating Expenses
Operating lease cost	General and administrative expense	$	436,356	$	65,054	$	872,712	$	125,917
Finance lease cost
Amortization of leased assets	Depreciation expense		-		190,229		-		368,007
Interest on lease liabilities	Interest expense, net		-		47,222		-		93,853
Total lease costs		$	436,356	$	302,505	$	872,712	$	587,777

The table below presents the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of June 30, 2023 and December 31, 2022:

	As of June 30, 2023			As of December 31, 2022
Weighted average remaining lease term (in years)
Operating leases		2.2			2.6

Weighted average discount rate
Operating leases		4.71	%		4.61	%

Lessee, Operating Lease, Liability, Maturity

The table below presents the maturity of the lease liabilities as of June 30, 2023:

	Operating leases
2023	$	1,059,154
2024		1,871,371
2025		1,298,420
2026		253,947

2027		32,949
Thereafter		1,432
Total lease payments:		4,517,273
Less: present value discount		(196,631	)
Total lease liabilities	$	4,320,642