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Table of Contents
<br />AMERESCO, INC.
<br />NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
<br />(In thousands, except per share amounts)
<br />Energy Asset Acquisitions
<br />In order to expand our portfolio of energy assets, we have acquired energy projects, which did not constitute businesses under the guidance discussed in Note 2.
<br />August 2023 Purchase and Sale Agreement
<br />On August 4, 2023, we entered into a purchase and sale agreement to acquire an energy asset project and rights to acquire100% of the stock of Bright Canyon Energy
<br />Corporation ("BCE") in a two -phased transaction exclusive of each other. Phase 1, the purchase of the energy asset project, closed on August 4, 2023 and did not constitute a
<br />business in accordance with ASC 805-50, Business Combinations.
<br />The adjusted purchase price for phase 1 was $87,964, of which $5,000 was paid in cash, $46,694 was financed through a seller's note, and we assumed a construction loan on
<br />the energy asset project for $36,270. We also acquired cash of $11,206. During the year ended December 31, 2023, we paid $18,400 in principal on the sellers note and at
<br />December 31, 2023, the balance of the seller's note was $28,294. See Note 9 for additional information about these loans. We agreed to sell back to the seller investment tax
<br />credits for the project acquired as part of this transaction for the fair market value of these credits in early in 2024 and recorded $20,970 in other receivables which is included in
<br />prepaid expenses and other current assets in the consolidated balance sheets. This amount was collected in January 2024. We also assumed a land lease for the energy asset
<br />project. See Note 8. for additional information on the lease.
<br />On December 28, 2023, we executed an amended and restated purchase and sale agreement, which primarily revised the timing of payments on phase 2. In the second phase,
<br />which closed on January 12, 2024, we acquired BCE, including its interest in a consolidated joint venture and its interests in project subsidiaries developing or with rights to
<br />develop solar, battery, and microgrid assets for a purchase price of $39,100.
<br />November 2023 Purchase Agreement
<br />On November 1, 2023, we purchased a solar asset project for $3,128, of which $1,251 has been paid to date. The remaining balance of $1,877 is included in accrued expenses
<br />and other current liabilities in the consolidated balance sheets at December 31, 2023. The payments are due when certain conditions as outlined in the agreement are met.
<br />2022 Energy Asset Acquisitions
<br />During the year ended December 31, 2022, we purchasedtwo energy projects, one solar and one wind, for $11,022.
<br />Depreciation and Amortization
<br />The following table sets forth our depreciation and amortization expense on energy assets, net of deferred grant amortization:
<br />Location
<br />Cost of revenues 0)
<br />(1) Includes depreciation and amortization expense on financing lease assets. See Note 8.
<br />Year Ended December 31,
<br />2023 2022 2021
<br />59,390 $ 49,755 $ 43,113
<br />Capitalized Interest
<br />The following table presents the interest costs relating to construction financing during the period of construction, which were capitalized as part of energy assets, net:
<br />Year Ended December 31,
<br />2023 2022 2021
<br />Capitalized interest
<br />Long-lived Asset Impairment
<br />43,561 $ 13,050 $ 2,814
<br />During December 2023, there was a triggering event which caused us to perform an impairment analysis on an energy asset group. The triggering event was related to the
<br />requirement to shut down the plant and replace transmission lines due to transfer
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