Portfolio Financings

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Overview

We have developed various financing options that enable customers' use of the Energy Servers through third-party ownership financing arrangements. For additional information on these financing options, see our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

On March 31, 2022, we entered into a Membership Interest Purchase Agreement where we bought out the equity interest of the third-party investor, wherein the PPA IIIa Investment Company and Operating Company ("PPA IIIa") became wholly-owned by us and no longer met the definition of a VIE. We therefore consolidate PPA IIIa in our condensed consolidated financial statements commencing March 31, 2022.

PPA Entities’ Aggregate Assets and Liabilities

Generally, the assets of an operating company owned by an investment company can be used to settle only the operating company obligations, and the operating company creditors do not have recourse to us. The following are the aggregate carrying values of our VIEs' assets and liabilities in our condensed consolidated balance sheets, after eliminations of intercompany transactions and balances, including as of March 31, 2022 each of the PPA Entities in the PPA IV transaction and the PPA V transaction, and as of December 31, 2021 each of the PPA Entities in the PPA IIIa transaction, the PPA IV transaction and the PPA V transaction (in thousands):



	March 31,		December 31,
	2022		2021

Assets
Current assets:
Cash and cash equivalents	$	1,704	$	1,541
Restricted cash	1,710		3,078
Accounts receivable	3,611		5,112
Customer financing receivable	—		5,784
Prepaid expenses and other current assets	1,682		3,071
Total current assets	8,707		18,586
Property and equipment, net	219,791		228,546
Customer financing receivable, non-current	—		39,484
Restricted cash, non-current	17,196		23,239
Other long-term assets	2,239		2,362
Total assets	$	247,933	$	312,217

Liabilities
Current liabilities:

Accrued expenses and other current liabilities	$	96	$	194
Deferred revenue and customer deposits	662		662
Non-recourse debt	14,283		17,483
Total current liabilities	15,041		18,339
Deferred revenue and customer deposits, non-current	5,247		5,410
Non-recourse debt, non-current	187,819		217,417

Total liabilities	$	208,107	$	241,166

We consolidated each PPA Entity as VIEs in the PPA IV transaction and the PPA V transaction, as we remain the minority shareholder in each of these transactions but have determined that we are the primary beneficiary of these VIEs. These PPA Entities contain debt that is non-recourse to us and own Energy Server assets for which we do not have title.