Tailwind Two Acquisition Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Leases

Leases

3 Months Ended

Mar. 31, 2024

Note 14 Leases

As part of normal operations, the Company leases real estate and equipment from various counterparties with lease terms and maturities extending through 2032.

The following table presents the amounts reported in the Company’s condensed consolidated balance sheets related to operating and finance leases as of the dates presented:


(in thousands)	Classification	March 31, 2024		December 31, 2023
Right-of-use assets:
Operating	Other assets	$	11,713	$	12,098
Finance	Property, plant, and equipment, net		8,425		5,873
Total right-of-use assets		$	20,138	$	17,971

Lease liabilities
Operating	Accrued expenses and other current liabilities	$	1,674	$	1,505
Finance	Current portion of long-term debt		3,017		1,929
Operating	Other liabilities		17,449		17,964
Finance	Long-term debt		3,856		3,059
Total lease liabilities		$	25,996	$	24,457

The following is a summary of the Company’s lease cost for the periods presented:


	Three Months Ended March 31,
Lease cost (in thousands)	2024		2023
Operating lease cost	$	1,806	$	1,767
Finance lease cost
Amortization of right-of-use assets		632		31
Interest on lease liabilities		133		8
Variable lease costs		407		267
Total lease cost	$	2,978	$	2,073

The following is a summary of the cash flows and supplemental information associated with the Company’s leases for the periods presented:


	Three Months Ended March 31,
Other information (in thousands)	2024		2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,766	$	1,849
Operating cash flows from finance leases		133		8
Financing cash flows from finance leases		490		22
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases		-		17
Finance leases		2,230		503

Lease payments prior to commencement are classified in the condensed consolidated statements of cash flows based on the expected classification of the lease upon commencement and are excluded from the table above. Payments prior to the commencement of finance leases totaled $81 thousand and $459 thousand during the three months ended March 31, 2024 and 2023, respectively.

In February 2023, the Company executed an operating lease for manufacturing and assembly space with an original lease term of 124 months, which is expected to commence in 2024. The total future minimum lease payments under this lease are approximately $34.5 million.