Financing Obligations |
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| Financing Obligations | Financing Obligations Failed Sale-Leaseback
During February and March 2023, the Company entered into two lease transactions with Rabo Lease BV (“Rabo”), whereby it sold equipment to Rabo and leased back the equipment for an initial term of four years. The Company concluded that the lease arrangements would be classified as a failed sale-leaseback transaction and accounted as a financing obligation as it has the option to repurchase the assets at a fixed price at the end of the term. The assets continue to be depreciated over their useful lives, and payments are allocated between interest expense and repayment of the financing obligation. The assets under failed sale-leaseback transactions are included within property and equipment, net and the proceeds from the transactions are recorded as a financing obligation on the Company's unaudited condensed consolidated balance sheets.
The weighted average interest rate of 20.5% was used to impute interest on the failed sale-leaseback transactions. Interest expense recognized for the three and nine months ended September 30, 2023 was $24 and $64, respectively.
As of September 30, 2023, future financing obligation payments under the failed sale-leaseback transactions are as follows:
Other Financing Arrangements
In August 2023, the Company entered into a financing agreement with Mitsubishi HC Capital America (“Financing Agreement”) for $500 using certain equipment as collateral. The Financing Agreement is payable in monthly installments beginning September 1, 2023 and has a maturity date of August 31, 2030. The effective interest rate on the Financing
Agreement is 8.09%. Interest expense of $4 was recognized for the three and nine months ended September 30, 2023. As of September 30, 2023, the amount outstanding under the Financing Agreement was $496.
The scheduled maturities of the Company’s Financing Agreement are as follows:
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