Leases

12 Months Ended

Dec. 31, 2023

Leases

Leases

Leases primarily consist of office space, facilities, and equipment.  A lease is deemed to exist when the Company has the right to control the use of identified property, plant or equipment, as conveyed through a contract, for a certain period of time and consideration paid. The right to control is deemed to occur when the Company has the right to obtain substantially all of the economic benefits of the identified assets and the right to direct the use of such assets. Eve recognizes right-of-use ("ROU") assets and a corresponding lease liability on the lease commencement date (the date in which the asset is available for use). Lease liabilities are recognized in Other current payables and Other non-current payables.

The Company uses its estimated incremental borrowing rate in determining the present values of lease payments. The incremental borrowing rate is the rate of interest the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments for a term similar to the lease term in a similar economic environment as the lease. Lease liabilities are measured at the present value of lease payments to be made during the lease term, which is measured based on the contract term and renewal options. Options to extend the lease term or terminate it early are considered when it is reasonably certain the options will be exercised. The Company had no leases during 2021. 

The following is a summary of balance sheet components of leases with related and third parties as of December 31:

Supplemental balance sheet information		2023		2022
Operating lease ROU assets - related parties	$	474	$	217
Operating lease ROU assets - third parties		34		0
Total operating lease ROU assets	$	508	$	217
Operating lease liabilities - related parties	$	474	$	217
Operating lease liabilities - third parties		36		0
Total operating lease liabilities	$	510	$	217

Leases with Related Parties

Leases with related parties primarily relate to office space and facilities. The following is a summary of the components of operating leases with related parties for the years ended December 31:

		2023			2022
Operating lease cost	$	113		$	9
Supplemental information - Leases with related parties
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	113		$	9
Right-of-use assets obtained in exchange for lease obligations
Operating leases		334			224
Weighted Average Remaining Lease Term (Years)		3.6			4.8
Weighted Average Discount Rate		10.2	%		7.4	%

Future minimum lease payments with related parties at December 31, 2023 were as follows:

		Operating Leases
2024	$	161
2025		161
2026		161
2027		84
2028		-
Thereafter		-
Total minimum lease payments		566
Imputed interest		(92	)
Total operating lease liabilities - related parties	$	474

As of December 31, 2023, the Company has one lease with a related party that has not yet commenced. The lease is for a site at Gavião Peixoto in the State of São Paulo, Brazil. The lease is expected to commence in 2024.  Additionally, the Company will have additional operating leases commence for equipment to be received from third parties during 2024.