Quarterly report pursuant to Section 13 or 15(d)

Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities

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Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities
 9 Months Ended
Sep. 30, 2024
Payables and Accruals [Abstract]  
Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities Accrued Expenses and Other Current Liabilities and Other Long-Term Liabilities
    Accrued expenses and other current liabilities and other long-term liabilities included the following (in thousands):
September 30, December 31,
2024 2023
State and local taxes payable $ 13,260  $ 13,111 
Sale-leaseback liability(a)
11,380  4,754 
Accrued compensation and benefits 5,028  5,558 
Financing leases 1,572  1,702 
Insurance reserves 1,372  1,277 
Deferred revenue 1,142  663 
Financed insurance premiums(b)
—  9,807 
Financing arrangement, net(c)
—  48,943 
Other 1,679  2,139 
Total accrued expenses and other current liabilities $ 35,433  $ 87,954 
Other Long-Term Liabilities
Financing leases $ 3,592  $ 2,138 
Sale-leaseback liability(a)
—  2,555 
Other 189  22 
Total other long-term liabilities $ 3,781  $ 4,715 
a.On December 30, 2020, the Company entered into an agreement with First National Capital, LLC (“FNC”) whereby the Company agreed to sell certain assets from its infrastructure segment to FNC for aggregate proceeds of $5.0 million. Concurrent with the sale of assets, the Company entered into a 36-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.1 million. On December 30, 2023, this lease was extended 12 months. On June 1, 2021, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $9.5 million and entered into a 42-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.2 million. On June 1, 2022, the Company entered into another agreement with FNC whereby the Company sold additional assets from its infrastructure segment to FNC for aggregate proceeds of $4.6 million and entered into a 42-month lease agreement whereby the Company agreed to lease back the assets at a monthly rental rate of $0.1 million. Under the agreements, the Company has the option to purchase the assets at the end of the lease terms. The Company recorded liabilities for the proceeds received and will continue to depreciate the assets. The Company has imputed an interest rate so that the carrying amount of the financial liabilities will be the expected repurchase price at the end of the lease terms. During the three months ended September 30, 2024, the Company changed its estimate of the purchase price at the end of a portion of the leases, resulting in a charge to interest expense and financing charges, net of $7.1 million.
b.Financed insurance premiums are due in monthly installments, are unsecured and mature within the twelve-month period following the close of the year. As of December 31, 2023, the applicable interest rates associated with financed insurance premiums ranged from 6.60% to 7.05%.
c.On December 1, 2023, Cobra, as seller, and Mammoth, as guarantor, entered into the Assignment Agreement with SPCP Group. Under the terms and conditions of the Assignment Agreement, Cobra transferred to SPCP Group all of its rights, title and interest in $54.4 million of outstanding accounts receivable with PREPA. The Company elected the fair value option for measuring the liability. As of December 31, 2023, the fair value of the liability was approximately $48.9 million. On February 26, 2024, PREPA paid $50.6 million with respect to its outstanding receivable to Cobra. This amount was in addition to $13.4 million paid by PREPA in January 2024. Of the $64.0 million paid by PREPA in 2024, $9.6 million was paid to Cobra and $54.4 million was paid to SPCP Group, as Cobra’s assignee under the Assignment Agreement. Following such payment, all of Cobra’s and Mammoth’s obligations under the Assignment Agreement were fully extinguished and the Assignment Agreement was terminated effective as of February 28, 2024. See Note 19 for additional information regarding this transaction.