Note 1 - Background and Basis of Presentation

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

Note 

1

 — Background and Basis of Presentation

NextDecade Corporation engages in development activities related to the liquefaction and sale of liquefied natural gas (“LNG”). We have focused and continue to focus our development activities on the Rio Grande LNG terminal facility at the Port of Brownsville in southern Texas (the “Terminal”) and an associated

137

-mile Rio Bravo pipeline to supply gas to the Terminal (the “Pipeline” and together with the Terminal, the “Project”). In

January 2017,

we also secured a

994

-acre site near Texas City, Texas for another potential LNG terminal (the “Galveston Bay Terminal”).

Basis of Presentation

 

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with Rule 

10

-

01

of Regulation S-

X.

Accordingly, they do

not

include all the information and disclosures required by GAAP for complete financial statements and should be read in conjunction with the consolidated financial statements and accompanying notes included in our Annual Report on Form

10

-K for the year ended

December 31, 2018

. In our opinion, all adjustments, consisting only of normal recurring items, which are considered necessary for a fair presentation of the unaudited consolidated financial statements, have been included.  The results of operations for the

three

and

nine

months ended

September 30, 2019

are

not

necessarily indicative of the operating results for the full year.

During the

first

quarter of

2019

, the Company adopted Accounting Standards Codification (“ASC”) Topic

842,

Leases

(“Topic

842”

), which requires lessees to recognize a right-of-use asset and a lease liability for all operating leases.  The Company adopted Topic

842

using a prospective transition approach, which applies the provisions of Topic

842

at the effective date without adjusting the comparative periods presented, with certain practical expedients available to ease the burden of adoption.  See Note

5

–

Leases

for additional information.