CorEnergy Infrastructure Trust, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

9 Months Ended

Sep. 30, 2023

The Company and its subsidiaries currently lease land, corporate office space, single-use office space, and equipment. During 2022, Crimson entered into a new corporate office lease that commenced upon possession of the property on April 15, 2023. No lease payments are due for the first year. During September 2023, the Company extended the lease for the CorEnergy corporate office, which will be effective December 2023 through May 2024. An additional operating right-of-use asset and operating lease liability were recorded for this lease in the amount of $97 thousand each. The Company's leases are classified as operating leases and presented as operating right-of-use assets (assets held-for-sale for MoGas and Omega) and operating lease liabilities (liabilities held-for-sale for MoGas and Omega) on the Consolidated Balance Sheets as of September 30, 2023. The Company's leases are presented as operating right-of-use assets and operating lease liabilities on the Consolidated Balance Sheets as of December 31, 2022. The Company recognizes lease expense in the Consolidated Statements of Operations on a straight-line basis over the remaining lease term. The Company noted the following information regarding its operating leases for the three and nine months ended September 30, 2023 and 2022:


	For the Three Months Ended				For the Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Lease cost:
Operating lease cost	$	319,585	$	446,601	$	1,301,515	$	1,339,803


Other Information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	100,857	$	341,186	$	1,131,383	$	1,441,220


Supplemental disclosure of non-cash leasing activities:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	97,415	$	—	$	2,330,936	$	—

Variable lease costs were immaterial for the three and nine months ended September 30, 2023 and 2022.

The following table reflects the weighted average lease term and discount rate for leases in which the Company is a lessee:



	September 30, 2023		December 31, 2022
Weighted average remaining lease term - operating leases (in years)	10.2		11.0
Weighted average discount rate - operating leases	8.44	%	7.45	%