Quarterly report pursuant to Section 13 or 15(d)

COMMITMENTS AND CONTINGENCIES (Tables)

v3.23.3
COMMITMENTS AND CONTINGENCIES (Tables)
 9 Months Ended
Sep. 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 deferred payments as of September 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
 
 
68,198,519
 
2025  
 
 
54,558,833
 
Total  
 
$
122,757,352
 
Lease-Related Assets and Liabilities
We currently lease certain manufacturing equipment, warehouses, office space, and vehicles under operating leases. The table below presents the lease-related assets and liabilities recorded on the balance sheet at September 30, 2023 and December 31, 2022:
 
Leases
 
Classification
 
 
As of
September 30, 2023
 
 
As of
December 31, 2022
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Operating lease assets
 
Operating lease right-of-use assets
 
 
$
4,007,063
 
 
$
5,332,110
 
Total lease assets
 
  
 
 
$
4,007,063
 
 
$
5,332,110
 
 
 
  
 
 
 
 
 
 
 
 
 
Liabilities
 
  
 
 
 
 
 
 
 
 
 
Current
 
  
 
 
 
 
 
 
 
 
 
Operating
 
Current portion of operating lease obligations
 
 
$
1,952,165
 
 
$
1,897,303
 
Non-current
 
  
 
 
 
 
 
 
 
 
 
Operating
 
Operating lease obligations, net of current portion
 
 
 
1,977,000
 
 
 
3,090,002
 
Total lease liabilities
 
 
 
 
 
$
3,929,165
 
 
$
4,987,305
 
Lease Cost
The table below presents the components of lease costs for the three and nine months ended September 30, 2023 and 2022:
 
Leases
 
Classification
 
 
Three months
ended
September 30,
2023
 
 
 
 
Three months
ended
September 30,
2022
 
 
 
 
Nine months
ended
September 30,
2023
 
 
 
 
Nine months
ended
September 30,
2022
 
 
Operating Expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating lease cost
 
 
General and administrative expense
 
 
$
436,356
 
 
$
219,407
 
 
$
1,309,068
 
 
$
456,510
 
Finance lease cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of leased assets
 
 
Depreciation expense
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
368,007
 
Interest on lease liabilities
 
 
Interest expense, net
 
 
 
-
 
 
 
-
 
 
 
-
 
 
 
93,853
 
Total lease costs
 
 
 
 
 
$
436,356
 
 
$
219,407
 
 
$
1,309,068
 
 
$
918,370
 
 
The table below presents the weighted average remaining lease terms and weighted average discount rates for the Company's leases as of September 30, 2023 and December 31, 2022:
 
 
 
As of September 30, 2023
 
 
As of December 31, 2022
 
Weighted average remaining lease term (in years)
 
 
 
 
 
 
 
 
Operating leases
 
 
1.9
 
 
 
2.6
 
 
 
 
 
 
 
 
 
 
Weighted average discount rate
 
 
 
 
 
 
 
 
Operating leases
 
 
4.73
%
 
 
4.61
%
Lessee, Operating Lease, Liability, Maturity
The table below presents the maturity of the lease liabilities as of September 30, 2023:
 
 
 
Operating leases
 
2023
 
$
806,828
 
2024
 
 
1,871,371
 
2025
 
 
1,298,420
 
2026
 
 
253,947
 
2027
 
 
32,949
 
Thereafter
 
 
1,432
 
Total lease payments:
 
 
4,264,946
 
Less: present value discount
 
 
(335,781
)
Total lease liabilities
 
$
3,929,165