000166470312/312022Q2FALSEhttp://fasb.org/us-gaap/2022#AccountingStandardsUpdate202006Member0http://fasb.org/us-gaap/2022#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2022#OtherLiabilitiesCurrent00016647032022-01-012022-06-300001664703us-gaap:CommonClassAMember2022-08-01xbrli:shares0001664703us-gaap:CommonClassBMember2022-08-0100016647032022-06-30iso4217:USD00016647032021-12-310001664703us-gaap:SeriesAPreferredStockMember2022-06-300001664703us-gaap:SeriesAPreferredStockMember2021-12-310001664703us-gaap:CommonClassAMember2022-06-30iso4217:USDxbrli:shares0001664703us-gaap:CommonClassBMember2021-12-310001664703us-gaap:CommonClassBMember2022-06-300001664703us-gaap:CommonClassAMember2021-12-310001664703us-gaap:ProductMember2022-04-012022-06-300001664703us-gaap:ProductMember2021-04-012021-06-300001664703us-gaap:ProductMember2022-01-012022-06-300001664703us-gaap:ProductMember2021-01-012021-06-300001664703be:InstallationMember2022-04-012022-06-300001664703be:InstallationMember2021-04-012021-06-300001664703be:InstallationMember2022-01-012022-06-300001664703be:InstallationMember2021-01-012021-06-300001664703us-gaap:ServiceMember2022-04-012022-06-300001664703us-gaap:ServiceMember2021-04-012021-06-300001664703us-gaap:ServiceMember2022-01-012022-06-300001664703us-gaap:ServiceMember2021-01-012021-06-300001664703us-gaap:ElectricityMember2022-04-012022-06-300001664703us-gaap:ElectricityMember2021-04-012021-06-300001664703us-gaap:ElectricityMember2022-01-012022-06-300001664703us-gaap:ElectricityMember2021-01-012021-06-3000016647032022-04-012022-06-3000016647032021-04-012021-06-3000016647032021-01-012021-06-300001664703us-gaap:CommonStockMember2022-03-310001664703us-gaap:AdditionalPaidInCapitalMember2022-03-310001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001664703us-gaap:RetainedEarningsMember2022-03-310001664703us-gaap:ParentMember2022-03-310001664703us-gaap:NoncontrollingInterestMember2022-03-3100016647032022-03-310001664703us-gaap:CommonStockMember2022-04-012022-06-300001664703us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001664703us-gaap:ParentMember2022-04-012022-06-300001664703us-gaap:NoncontrollingInterestMember2022-04-012022-06-300001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001664703us-gaap:RetainedEarningsMember2022-04-012022-06-300001664703us-gaap:CommonStockMember2022-06-300001664703us-gaap:AdditionalPaidInCapitalMember2022-06-300001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001664703us-gaap:RetainedEarningsMember2022-06-300001664703us-gaap:ParentMember2022-06-300001664703us-gaap:NoncontrollingInterestMember2022-06-300001664703us-gaap:CommonStockMember2021-03-310001664703us-gaap:AdditionalPaidInCapitalMember2021-03-310001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001664703us-gaap:RetainedEarningsMember2021-03-310001664703us-gaap:ParentMember2021-03-310001664703us-gaap:NoncontrollingInterestMember2021-03-3100016647032021-03-310001664703us-gaap:CommonStockMember2021-04-012021-06-300001664703us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001664703us-gaap:ParentMember2021-04-012021-06-300001664703us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001664703us-gaap:RetainedEarningsMember2021-04-012021-06-300001664703us-gaap:CommonStockMember2021-06-300001664703us-gaap:AdditionalPaidInCapitalMember2021-06-300001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001664703us-gaap:RetainedEarningsMember2021-06-300001664703us-gaap:ParentMember2021-06-300001664703us-gaap:NoncontrollingInterestMember2021-06-3000016647032021-06-300001664703us-gaap:CommonStockMember2021-12-310001664703us-gaap:AdditionalPaidInCapitalMember2021-12-310001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001664703us-gaap:RetainedEarningsMember2021-12-310001664703us-gaap:ParentMember2021-12-310001664703us-gaap:NoncontrollingInterestMember2021-12-310001664703us-gaap:CommonStockMember2022-01-012022-06-300001664703us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-300001664703us-gaap:ParentMember2022-01-012022-06-300001664703us-gaap:NoncontrollingInterestMember2022-01-012022-06-300001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001664703us-gaap:RetainedEarningsMember2022-01-012022-06-300001664703us-gaap:CommonStockMember2020-12-310001664703us-gaap:AdditionalPaidInCapitalMember2020-12-310001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001664703us-gaap:RetainedEarningsMember2020-12-310001664703us-gaap:ParentMember2020-12-310001664703us-gaap:NoncontrollingInterestMember2020-12-3100016647032020-12-3100016647032020-01-012020-12-310001664703us-gaap:AdditionalPaidInCapitalMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001664703us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001664703us-gaap:ParentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001664703srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001664703us-gaap:CommonStockMember2021-01-012021-06-300001664703us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001664703us-gaap:ParentMember2021-01-012021-06-300001664703us-gaap:NoncontrollingInterestMember2021-01-012021-06-300001664703us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001664703us-gaap:RetainedEarningsMember2021-01-012021-06-300001664703be:RecourseDebtMember2022-06-300001664703srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-04-012022-06-30xbrli:pure0001664703srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-01-012022-06-300001664703srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-04-012021-06-300001664703srt:AsiaPacificMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-01-012021-06-300001664703us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2022-06-302022-06-30be:customer0001664703us-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-12-312021-12-310001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerOneMemberus-gaap:AccountsReceivableMember2022-06-302022-06-300001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerOneMemberus-gaap:AccountsReceivableMember2021-12-312021-12-310001664703us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-04-012022-06-300001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerOneMemberus-gaap:SalesRevenueNetMember2022-04-012022-06-300001664703be:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-04-012022-06-300001664703us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-01-012022-06-300001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerOneMemberus-gaap:SalesRevenueNetMember2022-01-012022-06-300001664703be:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2022-01-012022-06-300001664703us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-04-012021-06-300001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerOneMemberus-gaap:SalesRevenueNetMember2021-04-012021-06-300001664703be:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-04-012021-06-300001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerThreeMemberus-gaap:SalesRevenueNetMember2021-04-012021-06-300001664703us-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-01-012021-06-300001664703us-gaap:CustomerConcentrationRiskMemberbe:CustomerOneMemberus-gaap:SalesRevenueNetMember2021-01-012021-06-300001664703be:CustomerTwoMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-01-012021-06-300001664703us-gaap:CashMember2022-06-300001664703us-gaap:CashMember2021-12-310001664703us-gaap:MoneyMarketFundsMember2022-06-300001664703us-gaap:MoneyMarketFundsMember2021-12-310001664703srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2022-06-300001664703srt:ConsolidatedEntityExcludingVariableInterestEntitiesVIEMember2021-12-310001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementsEntitiesMember2022-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementsEntitiesMember2021-12-310001664703be:PowerPurchaseAgreementCompany2Memberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3bMember2022-06-300001664703be:PowerPurchaseAgreementCompany2Memberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3bMember2021-12-310001664703us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2022-06-300001664703us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2022-06-300001664703us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2022-06-300001664703us-gaap:FairValueInputsLevel1Member2022-06-300001664703us-gaap:FairValueInputsLevel2Member2022-06-300001664703us-gaap:FairValueInputsLevel3Member2022-06-300001664703us-gaap:FairValueInputsLevel1Memberbe:OptionToAcquireSharesMember2022-06-300001664703be:OptionToAcquireSharesMemberus-gaap:FairValueInputsLevel2Member2022-06-300001664703us-gaap:FairValueInputsLevel3Memberbe:OptionToAcquireSharesMember2022-06-300001664703be:OptionToAcquireSharesMember2022-06-300001664703us-gaap:FairValueInputsLevel1Memberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-06-300001664703us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:FairValueInputsLevel2Member2022-06-300001664703us-gaap:FairValueInputsLevel3Memberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-06-300001664703us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-06-300001664703us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2021-12-310001664703us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001664703us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2021-12-310001664703us-gaap:FairValueInputsLevel1Member2021-12-310001664703us-gaap:FairValueInputsLevel2Member2021-12-310001664703us-gaap:FairValueInputsLevel3Member2021-12-310001664703us-gaap:FairValueInputsLevel1Memberbe:OptionToAcquireSharesMember2021-12-310001664703be:OptionToAcquireSharesMemberus-gaap:FairValueInputsLevel2Member2021-12-310001664703us-gaap:FairValueInputsLevel3Memberbe:OptionToAcquireSharesMember2021-12-310001664703be:OptionToAcquireSharesMember2021-12-310001664703us-gaap:FairValueInputsLevel1Memberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-12-310001664703us-gaap:EmbeddedDerivativeFinancialInstrumentsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001664703us-gaap:FairValueInputsLevel3Memberus-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-12-310001664703us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2021-12-310001664703us-gaap:EmbeddedDerivativeFinancialInstrumentsMember2022-01-012022-06-300001664703us-gaap:CarryingReportedAmountFairValueDisclosureMemberbe:LeaseReceivableMember2022-06-300001664703us-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:LeaseReceivableMember2022-06-300001664703us-gaap:CarryingReportedAmountFairValueDisclosureMemberbe:LeaseReceivableMember2021-12-310001664703us-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:LeaseReceivableMember2021-12-310001664703be:SeniorSecuredNotesDueMarch2027RecourseMemberus-gaap:NotesPayableOtherPayablesMember2022-06-300001664703be:SeniorSecuredNotesDueMarch2027RecourseMemberus-gaap:NotesPayableOtherPayablesMember2021-12-310001664703be:SeniorSecuredNotesDueMarch2027RecourseMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:NotesPayableOtherPayablesMember2022-06-300001664703us-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:SeniorSecuredNotesDueMarch2027RecourseMemberus-gaap:NotesPayableOtherPayablesMember2022-06-300001664703be:SeniorSecuredNotesDueMarch2027RecourseMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:NotesPayableOtherPayablesMember2021-12-310001664703us-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:SeniorSecuredNotesDueMarch2027RecourseMemberus-gaap:NotesPayableOtherPayablesMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMember2022-06-300001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-06-300001664703us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:GreenConvertibleSeniorNotesMember2022-06-300001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001664703us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:GreenConvertibleSeniorNotesMember2021-12-310001664703be:TermLoanDueSeptember2028NonRecourseMemberus-gaap:SecuredDebtMember2021-12-310001664703be:TermLoanDueSeptember2028NonRecourseMemberus-gaap:SecuredDebtMember2022-06-300001664703be:TermLoanDueSeptember2028NonRecourseMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2022-06-300001664703be:TermLoanDueSeptember2028NonRecourseMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2022-06-300001664703be:TermLoanDueSeptember2028NonRecourseMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-12-310001664703be:TermLoanDueSeptember2028NonRecourseMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberus-gaap:SecuredDebtMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:SeniorSecuredNotesDueMarch2030NonRecourseMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:SeniorSecuredNotesDueMarch2030NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberbe:SeniorSecuredNotesDueMarch2030NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:SeniorSecuredNotesDueMarch2030NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberbe:SeniorSecuredNotesDueMarch2030NonRecourseMember2021-12-310001664703us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:SeniorSecuredNotesDueMarch2030NonRecourseMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:SeniorSecuredNotesDueJune2031NonRecourseMember2021-12-310001664703us-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberbe:SeniorSecuredNotesDueJune2031NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:SeniorSecuredNotesDueJune2031NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberbe:SeniorSecuredNotesDueJune2031NonRecourseMember2021-12-310001664703us-gaap:SeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMemberbe:SeniorSecuredNotesDueJune2031NonRecourseMember2021-12-310001664703us-gaap:EnergyEquipmentMember2022-06-300001664703us-gaap:EnergyEquipmentMember2021-12-310001664703us-gaap:MachineryAndEquipmentMember2022-06-300001664703us-gaap:MachineryAndEquipmentMember2021-12-310001664703us-gaap:ConstructionInProgressMember2022-06-300001664703us-gaap:ConstructionInProgressMember2021-12-310001664703us-gaap:LeaseholdsAndLeaseholdImprovementsMember2022-06-300001664703us-gaap:LeaseholdsAndLeaseholdImprovementsMember2021-12-310001664703us-gaap:BuildingMember2022-06-300001664703us-gaap:BuildingMember2021-12-310001664703be:ComputersSoftwareAndHardwareMember2022-06-300001664703be:ComputersSoftwareAndHardwareMember2021-12-310001664703us-gaap:FurnitureAndFixturesMember2022-06-300001664703us-gaap:FurnitureAndFixturesMember2021-12-310001664703us-gaap:PropertyPlantAndEquipmentMember2021-04-012021-06-300001664703us-gaap:PropertyPlantAndEquipmentMember2021-01-012021-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMemberbe:OldEnergyServerMember2022-06-012022-06-30utr:MW0001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMemberbe:OldEnergyServerMember2022-01-012022-05-310001664703us-gaap:SeniorNotesMemberbe:SeniorSecuredNotesMember2022-06-300001664703be:NonRecourseDebtMember2022-06-300001664703be:RecourseDebtMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:SeniorSecuredNotesMember2021-12-310001664703be:NonRecourseDebtMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMember2022-04-012022-06-300001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMember2022-01-012022-06-300001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMember2021-04-012021-06-300001664703us-gaap:SeniorNotesMemberbe:GreenConvertibleSeniorNotesMember2021-01-012021-06-300001664703us-gaap:SeniorNotesMemberbe:SeniorSecuredNotesDueJune2031NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberbe:TermLoanDueSeptember2028NonRecourseMember2022-06-300001664703us-gaap:SeniorNotesMemberbe:TermLoanDueSeptember2028NonRecourseMember2021-12-310001664703us-gaap:SeniorNotesMemberbe:PowerPurchaseAgreementCompany3aMemberbe:TermLoanDueSeptember2028NonRecourseMember2022-06-142022-06-140001664703us-gaap:SeniorNotesMemberbe:PowerPurchaseAgreementCompany3aMemberbe:TermLoanDueSeptember2028NonRecourseMember2022-06-140001664703us-gaap:SeniorNotesMemberbe:PowerPurchaseAgreementCompany3aMemberbe:TermLoanDueSeptember2028NonRecourseMember2022-06-300001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-03-310001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-03-310001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-12-310001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2020-12-310001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-04-012022-06-300001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-04-012021-06-300001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-01-012022-06-300001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-01-012021-06-300001664703us-gaap:InterestRateSwapMember2022-04-012022-06-300001664703us-gaap:InterestRateSwapMember2021-04-012021-06-300001664703us-gaap:InterestRateSwapMember2022-01-012022-06-300001664703us-gaap:InterestRateSwapMember2021-01-012021-06-300001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2022-06-300001664703us-gaap:AccumulatedNetGainLossFromCashFlowHedgesIncludingPortionAttributableToNoncontrollingInterestMember2021-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:ManagedServicesMember2022-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PortfolioFinancingMember2022-06-300001664703us-gaap:CostOfSalesMember2022-04-012022-06-300001664703us-gaap:CostOfSalesMember2021-04-012021-06-300001664703us-gaap:CostOfSalesMember2022-01-012022-06-300001664703us-gaap:CostOfSalesMember2021-01-012021-06-300001664703us-gaap:ResearchAndDevelopmentExpenseMember2022-04-012022-06-300001664703us-gaap:ResearchAndDevelopmentExpenseMember2021-04-012021-06-300001664703us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-06-300001664703us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-06-300001664703us-gaap:SellingAndMarketingExpenseMember2022-04-012022-06-300001664703us-gaap:SellingAndMarketingExpenseMember2021-04-012021-06-300001664703us-gaap:SellingAndMarketingExpenseMember2022-01-012022-06-300001664703us-gaap:SellingAndMarketingExpenseMember2021-01-012021-06-300001664703us-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300001664703us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-06-300001664703us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300001664703us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-06-3000016647032021-01-012021-12-310001664703us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001664703us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001664703us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001664703us-gaap:EmployeeStockOptionMember2021-01-012021-06-300001664703us-gaap:CommonClassAMember2021-04-012021-06-300001664703us-gaap:CommonClassAMember2022-04-012022-06-300001664703us-gaap:CommonClassAMember2022-01-012022-06-300001664703us-gaap:CommonClassAMember2021-01-012021-06-300001664703us-gaap:RestrictedStockUnitsRSUMember2021-12-310001664703us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001664703us-gaap:RestrictedStockUnitsRSUMember2022-06-300001664703us-gaap:RestrictedStockUnitsRSUMember2022-04-012022-06-300001664703us-gaap:RestrictedStockUnitsRSUMember2021-04-012021-06-300001664703us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-06-300001664703us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310001664703be:A2018EmployeeStockPurchasePlanMember2022-01-012022-06-300001664703be:A2018EmployeeStockPurchasePlanMember2021-01-012021-06-300001664703be:A2018EmployeeStockPurchasePlanMember2022-06-300001664703be:A2018EmployeeStockPurchasePlanMember2021-06-300001664703be:A2018EmployeeStockPurchasePlanMember2021-12-310001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-01-012022-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-04-012022-06-130001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:SaleOfProjectCompanyMemberus-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMemberbe:PowerPurchaseAgreementCompany3aMember2022-06-142022-06-140001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-06-142022-06-140001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-06-142022-06-300001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-01-012022-06-300001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-06-300001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-06-132022-06-130001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-06-142022-06-140001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:NetProductAndInstallationMemberbe:PowerPurchaseAgreementCompany3aMember2022-04-012022-06-300001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:NetProductAndInstallationMemberbe:PowerPurchaseAgreementCompany3aMember2022-01-012022-06-300001664703be:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:ElectricityMemberbe:PowerPurchaseAgreementCompany3aMember2022-01-012022-06-300001664703us-gaap:ProductMemberbe:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-01-012022-06-300001664703be:InstallationMemberbe:PPA3AUpgradeMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3aMember2022-01-012022-06-300001664703us-gaap:EquityMethodInvesteeMember2022-01-012022-06-300001664703us-gaap:EquityMethodInvesteeMember2022-04-012022-06-300001664703be:NetJetsMember2022-06-300001664703be:PowerPurchaseAgreementCompany5Member2022-01-012022-06-300001664703be:PowerPurchaseAgreementCompany5Member2021-01-012021-06-300001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3bMember2019-12-310001664703us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbe:PowerPurchaseAgreementCompany3bMember2019-01-012019-12-3100016647032012-03-3100016647032022-01-102022-01-100001664703be:ConvertibleNotesMember2022-04-012022-06-300001664703be:ConvertibleNotesMember2021-04-012021-06-300001664703be:ConvertibleNotesMember2022-01-012022-06-300001664703be:ConvertibleNotesMember2021-01-012021-06-300001664703us-gaap:RedeemableConvertiblePreferredStockMember2022-04-012022-06-300001664703us-gaap:RedeemableConvertiblePreferredStockMember2021-04-012021-06-300001664703us-gaap:RedeemableConvertiblePreferredStockMember2022-01-012022-06-300001664703us-gaap:RedeemableConvertiblePreferredStockMember2021-01-012021-06-300001664703us-gaap:EmployeeStockOptionMember2022-04-012022-06-300001664703us-gaap:EmployeeStockOptionMember2021-04-012021-06-300001664703us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001664703us-gaap:EmployeeStockOptionMember2021-01-012021-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________________________________________________________
FORM 10-Q
(Mark One)  
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from ____________to ____________
 Commission File Number 001-38598 
________________________________________________________________________
be-20220630_g1.jpg
BLOOM ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
________________________________________________________________________
Delaware 77-0565408
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
4353 North First Street, San Jose, California
95134
(Address of principal executive offices) (Zip Code)
(408) 543-1500
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class(1)
Trading Symbol Name of each exchange on which registered
Class A Common Stock, $0.0001 par value BE New York Stock Exchange
(1) Our Class B Common Stock is not registered but is convertible into shares of Class A Common Stock at the election of the holder.
________________________________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  þ    No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  þ    No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.  
Large accelerated filer þ     Accelerated filer   ¨      Non-accelerated filer   ¨      Smaller reporting company        Emerging growth company   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes      No  þ
The number of shares of the registrant’s common stock outstanding as of August 1, 2022 was as follows:
Class A Common Stock, $0.0001 par value, 163,294,503 shares
Class B Common Stock, $0.0001 par value, 15,827,865 shares
1


Bloom Energy Corporation
Quarterly Report on Form 10-Q for the Three and Six Months Ended June 30, 2022
Table of Contents
  Page
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements (unaudited)
3
Condensed Consolidated Balance Sheets
3
Condensed Consolidated Statements of Operations
4
Condensed Consolidated Statements of Comprehensive Loss
5
Condensed Consolidated Statements of Changes in Stockholders' Deficit
6
Condensed Consolidated Statements of Cash Flows
8
Notes to Unaudited Condensed Consolidated Financial Statements
9
Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3 - Quantitative and Qualitative Disclosures About Market Risk
Item 4 - Controls and Procedures
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Item 1A - Risk Factors
Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds
Item 3 - Defaults Upon Senior Securities
Item 4 - Mine Safety Disclosures
Item 5 - Other Information
Item 6 - Exhibits
Signatures

Unless the context otherwise requires, the terms "Company", "we," "us," "our," and "Bloom Energy," each refer to Bloom Energy Corporation and all of its subsidiaries.


2

Part I
ITEM 1 - FINANCIAL STATEMENTS

Bloom Energy Corporation
Condensed Consolidated Balance Sheets
(in thousands, except share data)
(unaudited)

June 30, December 31,
2022 2021
Assets
Current assets:
Cash and cash equivalents1
$ 235,638  $ 396,035 
Restricted cash1
50,293  92,540 
Accounts receivable less allowance for doubtful accounts of $119 as of June 30, 2022 and December 31, 20211
77,972  87,789 
Contract assets 33,374  25,201 
Inventories 206,707  143,370 
Deferred cost of revenue 30,110  25,040 
Customer financing receivable1
—  5,784 
Prepaid expenses and other current assets1
35,155  30,661 
Total current assets 669,249  806,420 
Property, plant and equipment, net1
628,759  604,106 
Operating lease right-of-use assets 110,362  106,660 
Customer financing receivable1
—  39,484 
Restricted cash1
128,248  126,539 
Deferred cost of revenue 5,310  1,289 
Other long-term assets1
38,905  41,073 
Total assets $ 1,580,833  $ 1,725,571 
Liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders’ deficit
Current liabilities:
Accounts payable $ 134,020  $ 72,967 
Accrued warranty 9,319  11,746 
Accrued expenses and other current liabilities1
101,204  114,138 
Deferred revenue and customer deposits1
93,237  89,975 
Operating lease liabilities 12,581  13,101 
Financing obligations 16,159  14,721 
Recourse debt 12,434  8,348 
Non-recourse debt1
14,734  17,483 
Total current liabilities 393,688  342,479 
Deferred revenue and customer deposits1
76,890  90,310 
Operating lease liabilities 118,291  106,187 
Financing obligations 447,595  461,900 
Recourse debt 278,538  283,483 
Non-recourse debt1
183,555  217,416 
Other long-term liabilities 18,646  16,772 
Total liabilities 1,517,203  1,518,547 
Commitments and contingencies (Note 13)
Redeemable convertible preferred stock, Series A: — shares authorized and — shares and no shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively.
208,551  208,551 
Redeemable noncontrolling interest —  300 
Stockholders’ deficit:
Common stock: $0.0001 par value; Class A shares - 600,000,000 shares authorized and 163,085,510 shares and 160,627,544 shares issued and outstanding and Class B shares - 600,000,000 shares authorized and 15,828,287 shares and 15,832,863 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively.
18  18 
Additional paid-in capital 3,284,261  3,219,081 
Accumulated other comprehensive loss (1,000) (350)
Accumulated deficit (3,460,234) (3,263,075)
Total deficit attributable to Class A and Class B common stockholders (176,955) (44,326)
Noncontrolling interest 32,034  42,499 
Total stockholders' deficit $ (144,921) $ (1,827)
Total liabilities, redeemable convertible preferred stock, redeemable noncontrolling interest and stockholders' deficit $ 1,580,833  $ 1,725,571 

1We have variable interest entities, which represent a portion of the consolidated balances recorded within these financial statement line items in the condensed consolidated balance sheets (see Note 11 - Portfolio Financings).


The accompanying notes are an integral part of these condensed consolidated financial statements.
3


Bloom Energy Corporation
Condensed Consolidated Statements of Operations
(in thousands, except share data)
(unaudited)

  Three Months Ended
June 30,
Six Months Ended
June 30,
  2022 2021 2022 2021
 
Revenue:
Product $ 173,625  $ 146,867  $ 307,172  $ 284,797 
Installation 12,729  28,879  26,282  31,538 
Service 38,426  35,707  73,665  72,124 
Electricity 18,456  17,017  37,156  34,018 
Total revenue 243,236  228,470  444,275  422,477 
Cost of revenue:
Product 129,419  108,891  235,161  196,185 
Installation 16,730  36,515  29,503  41,140 
Service 41,028  35,565  82,854  71,683 
Electricity 58,029  10,155  70,790  21,474 
Total cost of revenue 245,206  191,126  418,308  330,482 
Gross (loss) profit (1,970) 37,344  25,967  91,995 
Operating expenses:
Research and development 41,614  25,673  76,140  48,968 
Sales and marketing 20,475  22,727  41,809  42,679 
General and administrative 38,114  31,655  75,850  57,456 
Total operating expenses 100,203  80,055  193,799  149,103 
Loss from operations (102,173) (42,711) (167,832) (57,108)
Interest income 196  76  255  150 
Interest expense (13,814) (14,553) (27,901) (29,284)
Loss on extinguishment of debt (4,233) —  (4,233) — 
Other (expense) income, net (1,191) 22  (4,218) (63)
Gain (loss) on revaluation of embedded derivatives 38  (942) 569  (1,460)
Loss before income taxes (121,177) (58,108) (203,360) (87,765)
Income tax (benefit) provision (12) 313  552  437 
Net loss (121,165) (58,421) (203,912) (88,202)
Less: Net loss attributable to noncontrolling interest (2,365) (4,536) (6,453) (9,424)
Net loss attributable to Class A and Class B common stockholders $ (118,800) $ (53,885) (197,459) (78,778)
Less: Net loss attributable to redeemable noncontrolling interest —  (22) (300) (26)
Net loss before portion attributable to redeemable noncontrolling interest and noncontrolling interest $ (118,800) $ (53,863) $ (197,159) $ (78,752)
Net loss per share available to Class A and Class B common stockholders, basic and diluted $ (0.67) $ (0.31) $ (1.11) $ (0.46)
Weighted average shares used to compute net loss per share available to Class A and Class B common stockholders, basic and diluted 178,507  172,749  177,852  171,753 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4


Bloom Energy Corporation
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
  2022 2021 2022 2021
 
Net loss $ (121,165) $ (58,421) $ (203,912) $ (88,202)
Other comprehensive loss, net of taxes:
Change in derivative instruments designated and qualifying as cash flow hedges —  1,385  —  (3,268)
Foreign currency translation adjustment (594) (747) (224)
Other comprehensive loss, net of taxes (594) 1,389  (747) (3,492)
Comprehensive loss (121,759) (57,032) (204,659) (91,694)
Less: Comprehensive loss attributable to noncontrolling interest (2,462) (5,919) (6,550) (6,265)
Comprehensive loss attributable to Class A and Class B common stockholders $ (119,297) $ (51,113) $ (198,109) $ (85,429)
Less: Comprehensive loss attributable to redeemable noncontrolling interest —  (22) (300) (26)
Comprehensive loss after portion attributable to redeemable noncontrolling interest and noncontrolling interest $ (119,297) $ (51,091) $ (197,809) $ (85,403)


The accompanying notes are an integral part of these condensed consolidated financial statements.

5


Bloom Energy Corporation
Condensed Consolidated Statements of Changes in Stockholders' Deficit
(in thousands, except share data) (unaudited)


Three Months Ended June 30, 2022
Class A and Class B Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total deficit attributable to Class A and Class B common stockholders Noncontrolling Interest Total Stockholders' Deficit
Shares Amount
Balances at March 31, 2022 177,995,695  $ 18  $ 3,251,128  $ (503) $ (3,341,434) $ (90,791) $ 36,035  $ (54,756)
Issuance of restricted stock awards 824,702  —  —  —  —  —  —  — 
Exercise of stock options 93,400  —  337  —  —  337  —  337 
Stock-based compensation —  —  32,796  —  —  32,796  —  32,796 
Distributions and payments to noncontrolling interests —  —  —  —  —  —  (1,539) (1,539)
Foreign currency translation adjustment       (497) —  (497) (97) (594)
Net loss1
—  —  —  —  (118,800) (118,800) (2,365) (121,165)
Balances at June 30, 2022 178,913,797  $ 18  $ 3,284,261  $ (1,000) $ (3,460,234) $ (176,955) $ 32,034  $ (144,921)

1There is no net loss attributable to redeemable noncontrolling interest.
Note: There was no redeemable noncontrolling interest as of March 31, 2022 and June 30, 2022.

Three Months Ended June 30, 2021
Class A and Class B Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total deficit attributable to Class A and Class B common stockholders Noncontrolling Interest Total Stockholders' Deficit
Shares Amount
Balances at March 31, 2021 172,099,453  $ 17  $ 3,129,687  $ (126) $ (3,123,518) $ 6,060  $ 57,986  $ 64,046 
Issuance of restricted stock awards 811,162  —  —  —  —  —  —  — 
Exercise of stock options 491,545  —  7,715  —  —  7,715  —  7,715 
Stock-based compensation —  —  18,515  —  —  18,515  —  18,515 
Change in effective portion of interest rate swap agreement —  —  —  —  —  —  (1,385) (1,385)
Distributions to noncontrolling interests —  —  —  —  —  —  (882) (882)
Foreign currency translation adjustment —  —  —  — 
Net loss2
—  —  —  —  (53,863) (53,863) (4,536) (58,399)
Balances at June 30, 2021 173,402,160  $ 17  $ 3,155,917  $ (124) $ (3,177,381) $ (21,571) $ 51,185  $ 29,614 

2Excludes $22 attributable to redeemable noncontrolling interest.
Note: Beginning redeemable noncontrolling interest of $356 - net loss attributable to redeemable noncontrolling interest of $22 = ending redeemable noncontrolling interest of $334.

6



Six Months Ended June 30, 2022
Class A and Class B Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total deficit attributable to Class A and Class B common stockholders Noncontrolling Interest Total Stockholders' Deficit
Shares Amount
Balances at December 31, 2021 176,460,407  $ 18  $ 3,219,081  $ (350) $ (3,263,075) $ (44,326) $ 42,499  $ (1,827)
Issuance of restricted stock awards 1,789,639  —  —  —  —  —  —  — 
ESPP purchase 420,689  —  5,981  —  —  5,981  —  5,981 
Exercise of stock options 243,062  —  1,317  —  —  1,317  —  1,317 
Stock-based compensation —  —  58,382  —  —  58,382  —  58,382 
Distributions and payments to noncontrolling interests —  —  (500) —  —  (500) (3,915) (4,415)
Foreign currency translation adjustment —  —  —  (650) —  (650) (97) (747)
Net loss3
—  —  —  —  (197,159) (197,159) (6,453) (203,612)
Balances at June 30, 2022 178,913,797  $ 18  $ 3,284,261  $ (1,000) $ (3,460,234) $ (176,955) $ 32,034  $ (144,921)

3Excludes $300 attributable to redeemable noncontrolling interest.
Note: Beginning redeemable noncontrolling interest of $300 - net loss attributable to redeemable noncontrolling interest of $300 = ending redeemable noncontrolling interest of Nil.

Six Months Ended June 30, 2021
Class A and Class B Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total deficit attributable to Class A and Class B common stockholders Noncontrolling Interest Total Stockholders' Deficit
Shares Amount
Balances at December 31, 2020 168,002,726  $ 17  $ 3,182,753  $ (9) $ (3,103,937) $ 78,824  $ 62,195  $ 141,019 
Cumulative effect upon adoption of Accounting Standards Update 2020-06 —  —  (126,799) —  5,308  (121,491) —  (121,491)
Issuance of restricted stock awards 1,951,664  —  —  —  —  —  —  — 
ESPP purchase 977,508  —  4,726  —  —  4,726  —  4,726 
Exercise of stock options 2,470,262  —  60,942  —  —  60,942  —  60,942 
Stock-based compensation —  —  34,295  —  —  34,295  —  34,295 
Change in effective portion of interest rate swap agreement —  —  —  —  —  —  3,268  3,268 
Distributions and payments to noncontrolling interests —  —  —  —  —  —  (4,745) (4,745)
Foreign currency translation adjustment —  —  —  (115) —  (115) (109) (224)
Net loss4
—  —  —  —  (78,752) (78,752) (9,424) (88,176)
Balances at June 30, 2021 173,402,160  $ 17  $ 3,155,917  $ (124) $ (3,177,381) $ (21,571) $ 51,185  $ 29,614 

4Excludes $26 attributable to redeemable noncontrolling interest.
Note: Beginning redeemable noncontrolling interest of $377 - distributions to redeemable noncontrolling interest of $17 - net loss attributable to redeemable noncontrolling interest of $26 = ending redeemable noncontrolling interest of $334.

The accompanying notes are an integral part of these condensed consolidated financial statements.
7


Bloom Energy Corporation
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
  Six Months Ended
June 30,
  2022 2021
Cash flows from operating activities:
Net loss $ (203,912) $ (88,202)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 30,697  26,808 
Non-cash lease expense 8,800  4,520 
Gain on sale of property, plant and equipment (523) — 
Write-off of assets related to PPA IIIa 44,800  — 
Revaluation of derivative liabilities 1,680  462 
Stock-based compensation 57,774  36,343 
Loss on extinguishment of debt 4,233  — 
Amortization of warrants and debt issuance costs 1,651  1,900 
Other 3,487  — 
Changes in operating assets and liabilities:
Accounts receivable 9,817  41,718 
Contract assets (8,173) (15,311)
Inventories (62,824) (21,026)
Deferred cost of revenue (8,995) 4,984 
Customer financing receivable 2,510  2,636 
Prepaid expenses and other assets (5,813) 6,246 
Operating lease right-of-use assets and operating lease liabilities 2,422  (5,140)
Finance lease liabilities 48  — 
Accounts payable 51,982  29,449 
Accrued expenses and other liabilities (18,017) (17,261)
Deferred revenue and customer deposits (10,158) (43,428)
Net cash used in operating activities (98,514) (35,302)
Cash flows from investing activities:
Purchase of property, plant and equipment (44,728) (34,460)
Net cash used in investing activities (44,728) (34,460)
Cash flows from financing activities:
Repayment of debt of PPA IIIa (30,212) — 
Repayment of debt (10,729) (7,838)
Debt make-whole payment related to PPA IIIa debt (2,413) — 
Proceeds from financing obligations —  7,123 
Repayment of financing obligations (16,475) (6,387)
Distributions to redeemable noncontrolling interests —  (17)
Distributions to noncontrolling interests (4,415) (4,745)
Proceeds from issuance of common stock 5,981  65,668 
Proceeds from exercise of options 1,317  — 
Net cash (used in) provided by financing activities (56,946) 53,804 
Effect of exchange rate changes on cash, cash equivalent and restricted cash (747) (224)
Net decrease in cash, cash equivalents and restricted cash (200,935) (16,182)
Cash, cash equivalents and restricted cash:
Beginning of period 615,114  416,710 
End of period $ 414,179  $ 400,528 
Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 25,938  $ 27,219 
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases 4,387  6,132 
Operating cash flows from finance leases 462  259 
Cash paid during the period for income taxes 982  185 
Non-cash investing and financing activities:
Transfer of customer financing receivable to property, plant and equipment, net $ 42,758  $ — 
Increase in recourse debt, non-current upon adoption of ASU 2020-06, net $ —  $ 121,491 
Liabilities recorded for property, plant and equipment, net 15,988  11 
Recognition of operating lease right-of-use asset during the year-to-date period 11,192  40,762 
Recognition of finance lease right-of-use asset during the year-to-date period —  1,335 
The accompanying notes are an integral part of these condensed consolidated financial statements.
8


Bloom Energy Corporation
Notes to Unaudited Condensed Consolidated Financial Statements
The unaudited interim financial statements reflects all normal and recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented.
The unaudited interim financial statements should be read in conjunction with the audited Consolidated Financial Statements, including the notes thereto, included in our 2021 Annual Report on Form 10-K.
1. Nature of Business, Liquidity and Basis of Presentation
Nature of Business
For information on the nature of our business, see Part II, Item 8, Note 1 - Nature of Business, Liquidity and Basis of Presentation, Nature of Business section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
We have not experienced any supply chain disruptions as a result of the invasion by the Russian Federation in Ukraine on February 24, 2022.
Liquidity
We have generally incurred operating losses and negative cash flows from operations since our inception. With the series of new debt offerings, debt extensions and conversions to equity that we completed during 2020 and 2021, we had $291.0 million of total outstanding recourse debt as of June 30, 2022, $278.5 million of which is classified as long-term debt. Our recourse debt scheduled repayments commenced in June 2022.
Our future capital requirements will depend on many factors, including our rate of revenue growth, the timing and extent of spending on research and development efforts and other business initiatives, the rate of growth in the volume of system builds and the need for additional manufacturing space, the expansion of sales and marketing activities both in domestic and international markets, market acceptance of our product, our ability to secure financing for customer use of our Energy Servers, the timing of installations, and overall economic conditions including the impact of COVID-19 and inflationary pressure in the US on our ongoing and future operations. The rising interest rates in the US will adversely impact the cost of new capital deployment.
In the opinion of management, the combination of our existing cash and cash equivalents and operating cash flows is expected to be sufficient to meet our operational and capital cash flow requirements and other cash flow needs for the next 12 months from the date of issuance of this Quarterly Report on Form 10-Q.
Basis of Presentation
We have prepared the condensed consolidated financial statements included herein pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"), and as permitted by those rules, including all disclosures required by generally accepted accounting principles as applied in the United States (“U.S. GAAP”). Certain prior period amounts have been reclassified to conform to the current period presentation.
Principles of Consolidation
For information on principles of consolidation, see Part II, Item 8, Note 1 - Nature of Business, Liquidity and Basis of Presentation, Principles of Consolidation section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
9


Use of Estimates
For information on the use of accounting estimates, see Part II, Item 8, Note 1 - Nature of Business, Liquidity and Basis of Presentation, Use of Estimates section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Concentration of Risk
Geographic Risk - The majority of our revenue and long-lived assets are attributable to operations in the United States for all periods presented. In addition to shipments in the US, we also ship our Energy Servers to other countries, primarily to the Republic of Korea, Japan, and India (collectively, the "Asia Pacific region"). In the three and six months ended June 30, 2022, total revenue in the Asia Pacific region was 62% and 63%, respectively, of our total revenue. In the three and six months ended June 30, 2021, total revenue in the Asia Pacific region was 34% and 39%, respectively, of our total revenue.
Credit Risk - At June 30, 2022 and December 31, 2021, one customer accounted for approximately 56% and 60% of accounts receivable, respectively. To date, we have not experienced any credit losses.
Customer Risk - During the three months ended June 30, 2022, two customers represented approximately 57% and 16% of our total revenue, respectively. During the six months ended June 30, 2022, two customers represented approximately 45% and 15% of our total revenue, respectively.
During the three months ended June 30, 2021, revenue from three customers represented 31%, 26% and 12% of our total revenue, respectively. During the six months ended June 30, 2021, revenue from two customers represented 36% and 14% of our total revenue, respectively.
2. Summary of Significant Accounting Policies
Please refer to the accounting policies described in Part II, Item 8, Note 2 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Recent Accounting Pronouncements
There have been no significant changes in our reported financial position or results of operations and cash flows resulting from the adoption of new accounting pronouncements.
Accounting Guidance Not Yet Adopted
Contract Assets and Contract Liabilities Acquired in a Business Combination - In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ("ASU 2021-08"), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. ASU 2021-08 will be effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The adoption impact of ASU 2021-08 will depend on the magnitude of any future acquisitions. The standard will not impact acquired contract assets or liabilities from business combinations occurring prior to the adoption date.


10


3. Revenue Recognition
Contract Balances
The following table provides information about accounts receivables, contract assets, customer deposits and deferred revenue from contracts with customers (in thousands):

June 30, December 31,
  2022 2021
Accounts receivable $ 77,972  $ 87,788 
Contract assets 33,374  25,201 
Customer deposits 73,750  64,809 
Deferred revenue 96,377  115,476 
Contract assets and contract liabilities are reported in a net position on an individual contract basis at the end of each reporting period. Contract assets are classified as current in the condensed consolidated balance sheet when the Company expects to complete the related performance obligations and invoice the customers within one year of the balance sheet date, and as long-term when the Company expects to complete the related performance obligations and invoice the customers more than one year out from the balance sheet date. Contract liabilities are classified as current in the condensed consolidated balance sheet when the revenue recognition associated with the related customer payments and invoicing is expected to occur within one year of the balance sheet date and as long-term when the revenue recognition associated with the related customer payments and invoicing is expected to occur in more than one year from the balance sheet date.
Contract Assets
Three Months Ended
June 30,
Six Months Ended
June 30,
2022 2021 2022 2021
 
Beginning balance $ 13,533  $ 5,008  $ 25,201  $ 3,327 
Transferred to accounts receivable from contract assets recognized at the beginning of the period (1,387) (556) (15,963) — 
Revenue recognized and not billed as of the end of the period 21,228  14,186  24,136  15,311 
Ending balance $ 33,374  $ 18,638  $ 33,374  $ 18,638 
Deferred Revenue
Deferred revenue activity, including deferred incentive revenue activity, during the three and six months ended June 30, 2022 and 2021 consisted of the following (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2022 2021 2022 2021
 
Beginning balance $ 103,489  $ 120,643  $ 115,476  $ 135,578 
Additions 182,067  195,324  348,744  350,785 
Revenue recognized (189,179) (199,712) (367,843) (370,108)
Ending balance $ 96,377  $ 116,255  $ 96,377  $ 116,255 

11


Disaggregated Revenue
We disaggregate revenue from contracts with customers into four revenue categories: product, installation, services and electricity (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2022 2021 2022 2021
Revenue from contracts with customers:  
Product revenue   $ 173,625  $ 146,867  $ 307,172  $ 284,797 
Installation revenue   12,729  28,879  26,282  31,538 
Services revenue   38,426  35,707  73,665  72,124 
Electricity revenue   2,794  707  5,476  1,302 
Total revenue from contract with customers 227,574  212,160  412,595  389,761 
Revenue from contracts accounted for as leases:
Electricity revenue 15,662  16,310  31,680  32,716 
Total revenue $ 243,236  $ 228,470  $ 444,275  $ 422,477 
12


4. Financial Instruments
Cash, Cash Equivalents and Restricted Cash
The carrying values of cash, cash equivalents and restricted cash approximate fair values and were as follows (in thousands):
June 30, December 31,
  2022 2021
As Held:
Cash $ 241,700  $ 318,080 
Money market funds 172,479  297,034 
$ 414,179  $ 615,114 
As Reported:
Cash and cash equivalents $ 235,638  $ 396,035 
Restricted cash 178,541  219,079 
$ 414,179  $ 615,114 

Restricted cash consisted of the following (in thousands):
June 30, December 31,
  2022 2021
Current:    
Restricted cash $ 48,563  $ 89,462 
Restricted cash related to PPA Entities1
1,730  3,078 
$ 50,293  $ 92,540 
Non-current:
Restricted cash $ 110,908  $ 103,300 
Restricted cash related to PPA Entities1
17,340  23,239 
128,248  126,539 
$ 178,541  $ 219,079 
1 We have VIEs that represent a portion of the consolidated balances recorded within the "restricted cash" and other financial statement line items in the condensed consolidated balance sheets (see Note 11 - Portfolio Financings). In addition, the restricted cash held in the PPA II and PPA IIIb entities as of June 30, 2022 includes $41.1 million and $1.2 million of current restricted cash, respectively, and $42.9 million and $6.7 million of non-current restricted cash, respectively. The restricted cash held in the PPA II and PPA IIIb entities as of December 31, 2021, includes $41.7 million and $1.2 million of current restricted cash, respectively, and $57.7 million and $6.7 million of non-current restricted cash, respectively. These entities are not considered VIEs.
Factoring Arrangements
We sell certain customer trade receivables on a non-recourse basis under factoring arrangements with our designated financial institution. These transactions are accounted for as sales and cash proceeds are included in cash used in operating activities. We derecognized $90.9 million and $116.3 million of accounts receivable as of June 30, 2022 and December 31, 2021, respectively, under these factoring arrangements. The costs of factoring such accounts receivable on our condensed consolidated statements of operations for the three and six months ended June 30, 2022 was $0.9 million and $1.2 million. The costs of factoring such accounts receivable on our condensed consolidated statements of operations for the three and six months ended June 30, 2021 were not material.
13


5. Fair Value
Our accounting policy for the fair value measurement of cash equivalents, natural gas fixed price forward contracts, and embedded Escalation Protection Plan ("EPP") derivatives is described in Part II, Item 8 Note 2 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis
The tables below set forth, by level, our financial assets that are accounted for at fair value for the respective periods. The table does not include assets and liabilities that are measured at historical cost or any basis other than fair value (in thousands):
Fair Value Measured at Reporting Date Using
June 30, 2022 Level 1 Level 2 Level 3 Total
Assets
Cash equivalents:
Money market funds $ 172,479  $ —  $ —  $ 172,479 
$ 172,479  $ —  $ —  $ 172,479 
Liabilities
Derivatives:
Option to acquire a variable number of shares of Class A Common Stock $ —  $ 12,089  $ —  $ 12,089 
Embedded EPP derivatives —  —  5,892  5,892 
$ —  $ 12,089  $ 5,892  $ 17,981 

  Fair Value Measured at Reporting Date Using
December 31, 2021 Level 1 Level 2 Level 3 Total
Assets
Cash equivalents:
Money market funds $ 297,034  $ —  $ —  $ 297,034 
$ 297,034  $ —  $ —  $ 297,034 
Liabilities
Derivatives:
Option to acquire a variable number of shares of Class A Common Stock $ —  $ 13,200  $ —  $ 13,200 
Embedded EPP derivatives —  —  6,461  6,461 
$ —  $ 13,200  $ 6,461  $ 19,661 
We revalued the Option to its fair value as of June 30, 2022, which is included in other (expense) income, net in our condensed consolidated statements of operations. The fair value of the Option is reflected in accrued expenses and other current liabilities in our condensed consolidated balance sheets.
For the three months ended June 30, 2022 and 2021, we recorded the fair value of the embedded EPP derivatives and recognized an unrealized immaterial gain and an unrealized loss of $0.9 million, respectively, in (loss) gain on revaluation of embedded derivatives on our condensed consolidated statements of operations.
For the six months ended June 30, 2022 and 2021, we recorded the fair value of the embedded EPP derivatives and recognized an unrealized gain of $0.6 million and an unrealized loss of $1.5 million, respectively, in gain (loss) on revaluation of embedded derivatives on our condensed consolidated statements of operations.
14


The changes in the Level 3 financial liabilities during the six months ended June 30, 2022 were as follows (in thousands):
Embedded EPP Derivative Liability
Liabilities at December 31, 2021
$ 6,461 
Changes in fair value (569)
Liabilities at June 30, 2022
$ 5,892 
Financial Assets and Liabilities and Other Items Not Measured at Fair Value on a Recurring Basis
Customer Receivables and Debt Instruments - The fair value for customer financing receivables is based on a discounted cash flow model, whereby the fair value approximates the present value of the receivables (Level 3). The senior secured notes, term loans and convertible notes are based on rates currently offered for instruments with similar maturities and terms (Level 3). The following table presents the estimated fair values and carrying values of customer receivables and debt instruments (in thousands):
  June 30, 2022 December 31, 2021
  Net Carrying
Value
Fair Value Net Carrying
Value
Fair Value
     
 Customer receivables
Customer financing receivable $ —  $ —  $ 45,269  $ 38,334 
Debt instruments
Recourse:
10.25% Senior Secured Notes due March 2027
67,124  64,775  68,968  72,573 
2.5% Green Convertible Senior Notes due August 2025
223,848  289,271  222,863  356,822 
Non-recourse:
7.5% Term Loan due September 2028 (Note 7)
—  —  29,006  35,669 
6.07% Senior Secured Notes due March 2030
71,060  73,691  73,262  83,251 
3.04% Senior Secured Notes due June 2031
127,229  120,481  132,631  137,983 

6. Balance Sheet Components
Inventories
The components of inventory consist of the following (in thousands):
June 30, December 31,
  2022 2021
Raw materials $ 118,881  $ 80,809 
Finished goods 47,108  30,668 
Work-in-progress 40,718  31,893 
$ 206,707  $ 143,370 
The inventory reserves were $16.5 million and $13.9 million as of June 30, 2022 and December 31, 2021, respectively.
15


Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following (in thousands):
June 30, December 31,
  2022 2021
     
Receivables from employees $ 8,399  $ 5,463 
Prepaid hardware and software maintenance 3,171  3,494 
Tax receivables 2,998  1,518 
Prepaid managed services 1,742  2,480 
Deposits made 1,420  817 
Prepaid workers compensation 1,090  5,330 
Prepaid deferred commissions 642  724 
State incentive receivable 203  427 
Other prepaid expenses and other current assets 15,490  10,408 
$ 35,155  $ 30,661 
Property, Plant and Equipment, Net
Property, plant and equipment, net consists of the following (in thousands):
June 30, December 31,
  2022 2021
     
Energy Servers $ 669,606  $ 674,799 
Machinery and equipment 125,371  110,600 
Construction-in-progress 69,227  43,544 
Leasehold improvements 65,572  52,936 
Building 49,240  48,934 
Computers, software and hardware 23,423  21,276 
Furniture and fixtures 8,770  8,607 
1,011,209  960,696 
Less: accumulated depreciation (382,450) (356,590)
$ 628,759  $ 604,106 
Depreciation expense related to property, plant and equipment for the three and six months ended June 30, 2022 was $16.3 million and $30.7 million, respectively. Depreciation expense related to property, plant and equipment for the three and six months ended June 30, 2021 was $13.4 million and $26.8 million, respectively.
Property, plant and equipment under operating leases by the PPA Entities was $362.0 million and $368.0 million and accumulated depreciation for these assets was $148.0 million and $139.4 million as of June 30, 2022 and December 31, 2021, respectively. Depreciation expense for these assets was $5.6 million and $11.5 million for the three and six months ended June 30, 2022, respectively. Depreciation expense for these assets was $5.9 million and $11.7 million for the three and six months ended June 30, 2021, respectively.
PPA IIIa Upgrade
In June 2022, we started a project to replace 9.8 megawatts of second-generation Energy Servers (the "old Energy Servers") at PPA IIIa Investment Company and Operating Company ("PPA IIIa") with current generation Energy Servers (the "new Energy Servers") (the "PPA IIIa Upgrade", the "PPA IIIa Repowering"). The replacement was ongoing as of June 30, 2022. See Note 11 - Portfolio Financing for additional information.
16


Change in Estimate
In June 2022, due to the replacement of old Energy Servers as part of the PPA IIIa Repowering, we revised the expected useful life of the old Energy Servers. As a result, the expected useful life of old Energy Servers decreased from 15 years to approximately 0.5 years. We recognized accelerated depreciation of $0.2 million in electricity cost of revenue on the revised carrying amount of the old Energy Servers after impairment loss in our condensed consolidated statements of operations. There is no effect from this change in accounting estimate on future periods.
Other Long-Term Assets
Other long-term assets consist of the following (in thousands):
June 30, December 31,
2022 2021
     
Prepaid insurance $ 8,490  $ 9,534 
Long-term lease receivable 8,126  7,953 
Deferred commissions 7,369  7,569 
Prepaid managed services 2,693  3,010 
Deposits made 2,319  1,923 
Deferred tax asset 908  954 
Investments in subsidiaries —  1,819 
Prepaid and other long-term assets 9,000  8,311 
$ 38,905  $ 41,073 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consist of the following (in thousands):
June 30, December 31,
  2022 2021
     
Compensation and benefits $ 35,114  $ 38,222 
Option to acquire a variable number of shares of Class A Common Stock 12,089  13,200 
Sales-related liabilities 7,482  6,040 
Accrued legal expenses 5,397  1,765 
Accrued installation 3,888  13,968 
Current portion of derivative liabilities 2,959  6,059 
Accrued consulting expenses 2,264  1,731 
Interest payable 2,156  2,159 
Sales tax liabilities 1,103  1,491 
Other 28,752  29,503 
$ 101,204  $ 114,138 

17


7. Outstanding Loans and Security Agreements
The following is a summary of our debt as of June 30, 2022 (in thousands, except percentage data):
  Unpaid
Principal
Balance
Net Carrying Value Interest
Rate
Maturity Dates Entity Recourse
  Current Long-
Term
Total
10.25% Senior Secured Notes due March 2027
$ 67,980  $ 12,434  $ 54,690  $ 67,124  10.25% March 2027 Company Yes
2.5% Green Convertible Senior Notes due August 2025
230,000    223,848  223,848  2.5% August 2025 Company Yes
Total recourse debt 297,980  12,434  278,538  290,972 
3.04% Senior Secured Notes due June 30, 2031
129,061  9,643  117,586  127,229  3.04% June 2031 PPA V No
6.07% Senior Secured Notes due March 2030
71,687  5,091  65,969  71,060  6.07% March 2030 PPA IV No
Total non-recourse debt 200,748  14,734  183,555  198,289 
Total debt $ 498,728  $ 27,168  $ 462,093  $ 489,261 

The following is a summary of our debt as of December 31, 2021 (in thousands, except percentage data):
  Unpaid
Principal
Balance
Net Carrying Value Interest
Rate
Maturity Dates Entity Recourse
  Current Long-
Term
Total
10.25% Senior Secured Notes due March 2027
$ 70,000  $ 8,348  $ 60,620  $ 68,968  10.25% March 2027 Company Yes
2.5% Green Convertible Senior Notes due August 2025
230,000  —  222,863  222,863  2.5% August 2025 Company Yes
Total recourse debt 300,000  8,348  283,483  291,831 
3.04% Senior Secured Notes due June 30, 2031
134,644  9,376  123,255  132,631  3.04% June 2031 PPA V No
7.5% Term Loan due September 2028
31,070  3,436  25,570  29,006  7.5% September 
2028
PPA IIIa No
6.07% Senior Secured Notes due March 2030
73,955  4,671  68,591  73,262  6.07% March 2030 PPA IV No
Total non-recourse debt 239,669  17,483  217,416  234,899 
Total debt $ 539,669  $ 25,831  $ 500,899  $ 526,730 

We and all of our subsidiaries were in compliance with all financial covenants as of June 30, 2022 and December 31, 2021.
Recourse Debt Facilities
Please refer to Part II, Item 8, Note 7 - Outstanding Loans and Security Agreements in our Annual Form 10-K for the fiscal year ended December 31, 2021 for discussion of our 10.25% Senior Secured Notes due March 2027 and 2.5% Green Convertible Senior Notes due August 2025.
Interest expense on the Green Notes for the three and six months ended June 30, 2022 was $2.0 million and $3.9 million, respectively, including amortization of issuance costs of $0.5 million and $1.0 million, respectively. Interest expense on the Green Notes for the three and six months ended June 30, 2021 was $1.9 million and $3.9 million, respectively, including amortization of issuance costs of $0.5 million and $1.0 million, respectively.
18


Non-recourse Debt Facilities
Please refer to Note 7 - Outstanding Loans and Security Agreements in our Annual Form 10-K for the fiscal year ended December 31, 2021 for discussion of our non-recourse debt
Both note purchase and credit agreements require us to maintain a debt service reserve, the balances of which are presented below (in millions):
June 30, December 31,
2022 2021
     
3.04% Senior Secured Notes due June 30, 2031
$ 8.0  $ 8.0 
7.5% Term Loan due September 2028
—  3.6 
6.07% Senior Secured Notes due March 2030
9.3  9.1 
These debt service balances are included as part of long-term restricted cash in the condensed consolidated balance sheets. Both notes and the loan are secured by assets of respective PPAs.
7.5% Term Loan due September 2028 - On June 14, 2022, as part of the PPA IIIa Upgrade, we paid off the outstanding balance and related accrued interest of $30.2 million and $0.4 million, respectively, and recognized a loss on extinguishment of debt of $4.2 million. The debt service reserve of $3.6 million was reclassified from restricted cash to cash and cash equivalents as of June 30, 2022.
Repayment Schedule and Interest Expense
The following table presents details of our outstanding loan principal repayment schedule as of June 30, 2022 (in thousands):
Remainder of 2022 $ 12,524 
2023 28,503 
2024 31,872 
2025 265,494 
2026 39,078 
Thereafter 121,257 
$ 498,728 
Interest expense of $13.8 million and $14.6 million for the three months ended June 30, 2022 and 2021, respectively, was recorded in interest expense on the condensed consolidated statements of operations. Interest expense of $27.9 million and $29.3 million for the six months ended June 30, 2022 and 2021, respectively, was recorded in interest expense on the condensed consolidated statements of operations. We did not incur any interest expense - related parties during the three and six months ended June 30, 2022 and 2021.
19


8. Derivative Financial Instruments
Cash Flow Hedges
As of December 31, 2021, we had settled our interest rate swaps, which had been designated as cash flow hedges. There were no cash flow hedges as of June 30, 2022. The changes in fair value of the interest rate swaps designated as cash flow hedges and the amounts recognized in accumulated other comprehensive loss and in earnings were as follows during the three and six months ended June 30, 2022 and 2021 (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2022 2021 2022 2021
Beginning balance $ —  $ 11,301  $ —  $ 15,989 
Loss (gain) recognized in other comprehensive loss —  1,880  —  (2,284)
Amounts reclassified from other comprehensive loss to earnings —  (495) —  (984)
Net loss (gain) recognized in other comprehensive loss —  1,385  —  (3,268)
Gain recognized in earnings —  (35) —  (70)
Ending balance $ —  $ 12,651  $ —  $ 12,651 
Embedded EPP Derivatives in Sales Contracts
For information on embedded EPP Derivatives in sales contracts, see Part II, Item 8, Note 8 - Derivative Financial Instruments in our Annual Report on form 10-K for the fiscal year ended December 31, 2021.
9. Leases
Facilities, Energy Servers, and Vehicles
For the three and six months ended June 30, 2022, rent expense for all occupied facilities was $4.7 million and $9.2 million, respectively. For the three and six months ended June 30, 2021, rent expense for all occupied facilities was $3.8 million and $7.0 million, respectively.
20


Operating and finance lease right-of-use assets and lease liabilities for facilities, Energy Servers, and vehicles as of June 30, 2022 and December 31, 2021 were as follows (in thousands):
June 30, December 31,
2022 2021
Operating Leases:
Operating lease right-of-use assets, net 1, 2
$ 110,362  $ 106,660 
Current operating lease liabilities (12,581) (13,101)
Non-current operating lease liabilities (118,291) (106,187)
Total operating lease liabilities $ (130,872) $ (119,288)
Finance Leases:
Finance lease right-of-use assets, net 2, 3, 4
$ 2,614 $ 2,944
Current finance lease liabilities
(924) (863)
Non-current finance lease liabilities (1,876) (2,157)
Total finance lease liabilities $ (2,800) $ (3,020)
Total lease liabilities $ (133,672) $ (122,308)
1 These assets primarily include leases for facilities, Energy Servers, and vehicles.
2 Net of accumulated amortization.
3 These assets primarily include leases for vehicles.
4 Included in property, plant and equipment, net in the condensed consolidated balance sheet.
The components of our facilities, Energy Servers, and vehicles' lease costs for the three and six months ended June 30, 2022 and 2021 were as follows (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2022 2021 2022 2021
Operating lease costs $ 6,049  $ 3,743  $ 11,885  $ 6,757 
Finance lease costs:
Amortization of finance lease right-of-use assets 263  174  521  881 
Interest expense for finance lease liabilities 52  46  105  244 
Total finance lease costs 315  220  626  1,125 
Short-term lease costs 167  169  241  341 
Total lease costs $ 6,531  $ 4,132  $ 12,752  $ 8,223 


21


Weighted average remaining lease terms and discount rates for our facilities, Energy Servers and vehicles as of June 30, 2022 and December 31, 2021 were as follows:
June 30, December 31,
2022 2021
Weighted average remaining lease term:
Operating leases 9.2 years 8.9 years
Finance leases 3.3 years 3.5 years
Weighted average discount rate:
Operating leases 9.8  % 9.6  %
Finance leases 7.7  % 7.6  %

Future lease payments under lease agreements for our facilities, Energy Servers and vehicles as of June 30, 2022 were as follows (in thousands):
Operating Leases Finance Leases
Remainder of 2022 $ 9,456  $ 509 
2023 19,496  1,013 
2024 18,007  840 
2025 18,246  369 
2026 17,853  139 
Thereafter 76,434  32 
Total minimum lease payments 159,492  2,902 
Less: amounts representing interest or imputed interest (28,620) (102)
Present value of lease liabilities $ 130,872  $ 2,800 
22


Managed Services and Portfolio Financings Through PPA Entities
At June 30, 2022, future lease payments under the Managed Services Agreements financing obligations were as follows (in thousands):
Financing Obligations
Remainder of 2022 $ 21,687 
2023 44,041 
2024 41,967 
2025 40,939 
2026 36,339 
Thereafter 55,427 
Total minimum lease payments 240,400 
Less: imputed interest (134,902)
Present value of net minimum lease payments 105,498 
Less: current financing obligations (16,159)
Long-term financing obligations $ 89,339 
The long-term financing obligations, as reflected in our condensed consolidated balance sheets, were $447.6 million and $461.9 million as of June 30, 2022 and December 31, 2021, respectively. The difference between these obligations and the principal obligations in the table above will be offset against the carrying value of the related Energy Servers at the end of the lease and the remainder recognized as a gain at that point.
Portfolio Financings through PPA Entities
The components of our aggregate net investment in sales-type leases under our Portfolio Financings through PPA entities consisted of the following (in thousands):
June 30, December 31,
2022 2021
Lease payment receivables, net1
$ —