SK ecoplant Strategic Investment

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

In September 2023, we entered into the Amended and Restated Joint Venture Agreement (the “JVA”) and the Share Purchase Agreement (together, the “Amended JV Agreements”) with SK ecoplant which allowed SK ecoplant to increase its share of the voting rights in the Korean JV to 60% and increased the scope of assembly done by the joint venture facility in the Republic of Korea to full assembly.

In January, 2024, SK ecoplant increased its capital contribution to Korean JV by $3.9 million, which increased its voting rights in the Korean JV to 60%. However, as of March 31, 2024, we continue to consolidate the Korean JV in our financial statements as we remain a primary beneficiary of this joint venture.

The following are the aggregate carrying values of the Korean JV’s assets and liabilities in our condensed consolidated balance sheets, after eliminations of intercompany transactions and balances, as of March 31, 2024 and December 31, 2023 (in thousands):


	March 31,		December 31,
	2024		2023
Assets
Current assets:
Cash and cash equivalents	$	7,228	$	3,003
Accounts receivable	13,056		19,567
Inventories	11,548		8,156
Prepaid expenses and other current assets	2,054		644
Total current assets	33,886		31,370
Property and equipment, net	2,346		2,519
Operating lease right-of-use assets	1,959		2,138
Other long-term assets	44		46
Total assets	$	38,235	$	36,073
Liabilities
Current liabilities:
Accounts payable	$	1,693	$	3,480
Accrued expenses and other current liabilities	4,221		2,347

Operating lease liabilities	439		440
Total current liabilities	6,353		6,267
Operating lease liabilities	1,442		1,617
Non-recourse debt	4,458		4,627
Total liabilities	$	12,253	$	12,511

For a description of the strategic investment with SK ecoplant Co., Ltd. (“SK ecoplant”, formerly known as SK Engineering & Construction Co., Ltd.), a subsidiary of the SK Group, please refer to Part II, Item 8, Note 17 — SK ecoplant Strategic Investment in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.