Sale of Energy Producing Assets |
12 Months Ended |
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Dec. 31, 2025 | |
| Discontinued Operations and Disposal Groups [Abstract] | |
| Sale of Energy Producing Assets | Sale of Energy Producing Assets During the first quarter of 2019, we sold certain energy producing assets, including the associated energy production contracts for total consideration of $7 million.
In connection with the asset sales, we entered into agreements with the purchaser to maintain and operate the assets over the remaining periods of the associated energy production contracts (through August 2033 and January 2034, respectively) in exchange for monthly fees for both maintenance and operation. These agreements contain provisions whereby we have guaranteed to the purchaser a minimum level or threshold of cash flows from the associated energy production contracts. As of December 31, 2025 the remaining minimum guaranteed cash flows aggregated to $4,155,675 over the remaining periods of the associated energy production contracts (through August 2033 and January 2034, respectively). Based upon an analysis of these energy producing assets expected future performance, as of December 31, 2025, we do not expect to make any material payments under the guarantee. Actual results are compared to the minimum threshold bi-annually and we reimburse any shortfall to the purchaser. To the extent actual results are in excess of the minimum threshold, we are entitled to fifty percent of such excess under the agreements. For the year ended December 31, 2025, we recognized a threshold shortfall of $84,854 and for the year ended December 31, 2024 and we recognized a threshold surplus of $73,243, respectively, of revenue representing our share of the excess cash flows under the energy production contracts. Our obligation under the energy production contracts was $42,765, representing 100% of the cash flows shortfall below the minimum threshold for the bi-annual period ended December 31, 2025. Included in our current receivables as of December 31, 2024, were excess cash flows of $98,876.
The foregoing agreements also contain provisions whereby we have agreed to make whole the purchaser in the event the counterparty to the energy production contract(s) defaults on or otherwise terminates before the stated expiration of the energy production contract. Should we be required to make whole the purchaser under such provisions, we would be entitled to seek recovery from the counterparty to the energy production contract(s) under a similar provision contained in those contracts in respect of early termination. We did not recognize any counterparty contract default costs in the years ended December 31, 2025 and 2024.
We are also responsible under the agreements for site decommissioning costs, if any, in excess of certain threshold amounts by site. Decommissioning of site assets is performed when, if and as requested by the counterparty to the energy production contract upon termination of the energy production contract. We did not recognize any site decommissioning costs for the year ended December 31, 2025 and we recognized $20,000 in site decommissioning costs for the year ended December 31, 2024.
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