Nuvve Holding Corp.NVVE
Nuvve Holding Corp. Leases Disclosure
Leases
The Company has entered into leases for commercial office spaces and vehicles. These leases are not unilaterally cancellable by the Company, are legally enforceable, and specify fixed or minimum amounts. The leases expire at various dates through 2031 and provide for renewal options. In the normal course of business, it is expected that these leases will be renewed or replaced by leases on other properties.
The leases provide for increases in future minimum annual rental payments based on defined increases in the Consumer Price Index, subject to certain minimum increases. Also, the agreements generally require the Company to pay real estate taxes, insurance, and repairs.
Supplemental consolidated balance sheet information related to leases is as follows:
| Classification | December 31, 2024 | December 31, 2023 | ||||||||||||||||||
| Operating lease assets | Right-of-use operating lease assets | $ | 4,493,360 | $ | 4,839,526 | |||||||||||||||
| Finance lease assets | 6,890 | 13,154 | ||||||||||||||||||
| Total lease assets | $ | 4,500,250 | $ | 4,852,680 | ||||||||||||||||
| Operating lease liabilities - current | Operating lease liabilities - current | $ | 914,800 | 856,250 | ||||||||||||||||
| Operating lease liabilities - noncurrent | Operating lease liabilities - noncurrent | 4,254,173 | 4,646,383 | |||||||||||||||||
| Finance lease liabilities - current | 6,969 | 7,391 | ||||||||||||||||||
| Finance lease liabilities - noncurrent | 1,519 | 7,764 | ||||||||||||||||||
| Total lease liabilities | $ | 5,177,462 | $ | 5,517,788 | ||||||||||||||||
The components of lease expense are as follows:
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| Classification | 2024 | 2023 | |||||||||||||||||||||
| Operating lease expense | Selling, general and administrative | $ | 912,671 | $ | 914,533 | ||||||||||||||||||
| Finance lease expense: | |||||||||||||||||||||||
| Amortization of finance lease assets | Selling, general and administrative | 5,568 | 5,779 | ||||||||||||||||||||
| Interest on finance lease liabilities | Interest (expense) income, net | 1,180 | 1,801 | ||||||||||||||||||||
| Total lease expense | $ | 919,419 | $ | 922,113 | |||||||||||||||||||
| Operating Lease | Finance Lease | |||||||||||||
| Maturities of lease liabilities are as follows: | December 31, 2024 | December 31, 2024 | ||||||||||||
| 2025 | $ | 953,976 | $ | 7,344 | ||||||||||
| 2026 | 981,717 | 1,742 | ||||||||||||
| 2027 | 987,955 | — | ||||||||||||
| 2028 | 937,727 | — | ||||||||||||
| 2029 | 925,564 | — | ||||||||||||
| Thereafter | 1,935,262 | — | ||||||||||||
| Total lease payments | 6,722,201 | 9,086 | ||||||||||||
| Less: interest | (1,553,227) | (598) | ||||||||||||
| Total lease liabilities | $ | 5,168,974 | $ | 8,488 | ||||||||||
Lease term and discount rate:
| December 31, 2024 | December 31, 2023 | |||||||||||||
| Weighted-average remaining lease terms (in years): | ||||||||||||||
| Operating lease | 6.7 | 7.8 | ||||||||||||
| Finance lease | 1.3 | 2.5 | ||||||||||||
| Weighted-average discount rate: | ||||||||||||||
| Operating lease | 7.8% | 7.8% | ||||||||||||
| Finance lease | 7.8% | 7.8% | ||||||||||||
Other Information:
| Years Ended December 31, | Years Ended December 31, | ||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from operating leases | $ | 357,118 | $ | 476,208 | |||||||||||||
| Operating cash flows from finance leases related to interest expense | $ | 1,180 | $ | 1,801 | |||||||||||||
| Financing cash flows from finance leases | $ | 10,074 | $ | 8,140 | |||||||||||||
| Leased assets obtained in exchange for new finance lease liabilities | $ | 6,890 | $ | 13,154 | |||||||||||||
| Leased assets obtained in exchange for new operating lease liabilities | $ | — | $ | — | |||||||||||||
Sublease
In April 2022, the Company entered into a sublease agreement with certain local San Diego companies to sublease a portion of the Company's 4,811 square foot expansion. The term of the sublease is six months to twelve months with fixed base rental income ranging from $2,250 to $14,500 per month. The sublease has no option for renewal or extension at the end of the sublease term.
In July 2024, the Company entered into a sublease agreement to sublease a portion of the Company's 7,842 square foot office space. The term of the sublease is 7.5 years with fixed base rental income ranging from $15,400 to $37,880 per month. The sublease has no option for renewal or extension at the end of the sublease term.
Sublease income are as follows:
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| Classification | 2024 | 2023 | |||||||||||||||||||||
| Sublease income | Other, net | $ | 381,894 | $ | 466,888 | ||||||||||||||||||
Lessor
In 2022, the Company entered into a 10 year master services agreement ("MSA") with a certain school district for FaaS to electrify their school bus fleet. A statement of work (“SOW”) for engineering, procurement and construction ("EPC") was also executed in conjunction with the MSA. As part of this SOW, the Company will provide electric vehicle supply equipment ("EVSE") and related warranties, infrastructure engineering and construction, installation of EVSE, and subscription services to Nuvve’s V2G GIVe platform. The MSA has both lease and non-lease components. The lease component is the EVSE and non-lease components are the EPCs. The Company accounted for the lease components as a sale-type lease with the investment in lease of $101,415 and $112,255 at December 31, 2024 and 2023, respectively.
Lease income are as follows:
| Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| Classification | 2024 | 2023 | |||||||||||||||||||||
| Lease income | $ | 36,201 | $ | 24,027 | |||||||||||||||||||
| Interest income | Products | 18,584 | 13,987 | ||||||||||||||||||||
| Total lease income | $ | 54,785 | $ | 38,014 | |||||||||||||||||||
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.