Variable Interest Entity

3 Months Ended

Mar. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Oxbow Realty was established for the purpose of holding real estate and facilitating real estate transactions on behalf of Oxbow Industries. This included facilitating the purchase of the land and building of SkyWater’s Minnesota facility with proceeds from a bank loan (see Note 6 – Debt) and managing the leaseback of the land and building to SkyWater (see Note 11 – Related Party Transactions). Management determined that Oxbow Realty meets the definition of a VIE under Accounting Standards Codification Topic 810, “Consolidations” (“Topic 810”), because it lacks sufficient equity to finance its activities. Furthermore, the Company is the primary beneficiary of Oxbow Realty as it has the power over those activities that most significantly affect Oxbow Realty’s economic performance, mainly activities focused on the operation and maintenance of the Minnesota facility. As the primary beneficiary, the Company consolidates the assets, liabilities, and results of operations of Oxbow Realty pursuant to Topic 810, eliminating any transactions between the Company and Oxbow Realty, and recording a noncontrolling interest for the economic interest in Oxbow Realty attributable to parties other than the Company’s common stock shareholders. In addition, the assets of Oxbow Realty can only be used to settle its liabilities, and the creditors of Oxbow Realty do not have recourse to the general credit of SkyWater.

The following table shows the carrying amounts of assets and liabilities of Oxbow Realty that are consolidated by the Company as of March 31, 2024 and December 31, 2023. The assets and liabilities are presented prior to the elimination of intercompany balances.


	March 31, 2024		December 31, 2023

Cash and cash equivalents	$	202	$	9
Accounts receivable	10,567		8,807

Finance receivable	40,821		40,707
Other assets	744		744
Total assets	$	52,334	$	50,267

Accounts payable	$	7,290	$	6,053
Accrued expenses	302		248
Contract liabilities	1,232		1,283
Debt	35,452		35,722
Total liabilities	$	44,276	$	43,306

The following table shows the revenue and expenses of Oxbow Realty for the three-month periods ended March 31, 2024 and April 2, 2023. These results of Oxbow Realty are presented prior to the elimination of intercompany transactions.


	Three-Month Period Ended
		March 31, 2024		April 2, 2023

Revenue		$	1,419	$	1,318
General and administrative expenses		16		293
Interest expense		306		318
Total expenses		322		611
Net income		$	1,097	$	707