Capital Lease

12 Months Ended

Dec. 31, 2013

Capital Lease

Capital Lease

9. Capital Lease

On October 1, 2012, the Company entered into an agreement under which it is providing a customer with 255 GenDrive units, service and maintenance of the units and daily delivery of hydrogen in exchange for a monthly utility payment tied to the amount of energy (kilograms of hydrogen) consumed each month.  The agreement has an initial term of three years with an automatic three year renewal unless the customer terminates at the end of the initial 3 year term. 

On December 28, 2012, Plug Power sold the 255 GenDrive units in use under the agreement to a third party and leased back the equipment to fulfill its obligations under the agreement or at other customer sites as agreed to by the owner/lessor. The transaction has been recorded by the Company as leased property under capital lease with a corresponding liability of obligations under capital lease on the consolidated balance sheets.

Future minimum capital lease payments as of December 31, 2014 are:

Year ending December 31,		Capital leases
2014		$	815,184
2015		611,388
Total future minimum lease payments		$	1,426,572
Less amount representing interest (at 9.9%)		121,823
Present value of net minimum capital lease payments		1,304,749
Less current installments of obligations under capital leases		717,870
	Obligations under capital leases, excluding current installments	$	586,879

 Leased property under capital lease at December 31, 2013 and December 31, 2012 consists of the following:

	December 31,		December 31,
	2013		2012
Leased property under capital lease	$	3,098,921	$	3,098,921
Less accumulated depreciation	(645,609)		(129,122)
Leased property under capital lease, net	$	2,453,312	$	2,969,799