Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
NOTE 9 – Commitments
Operating Leases
The Company has entered into warehouse and office leases with third parties for periods ranging from one to three years. The Company also entered into a related-party office lease as a result of its acquisition of interest GCES in 2020. During the nine months ended September 30, 2021, the Company paid $0.2 million under this related-party lease which expires in May 2022.
For the nine months ended September 30, 2021 and 2020, the Company recognized rent expense of $0.9 million and $0.2 million, respectively.
Future minimum lease payments under the Company’s non-cancellable operating leases are as follows:
(in thousands)

Remainder of 2021:
$ 207
2022 633 
2023 114 
2024 21 
Total future minimum lease payments
$ 975
Other Commitments
The Company has various long-term contractual commitments pertaining to its biogas rights agreements. These agreements expire at various dates through 2045. The following summarizes the aggregate minimum future payments under these contracts as of September 30, 2021:
(in thousands)

Remainder of 2021:
$ 794 
2022 7,085 
2023 2,975 
2024 2,975 
2025 2,975 
Total future payments $ 40,192 
NOTE 19 - Contingencies
Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of contingencies. The Company accrues an undiscounted liability for contingencies where a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Company does not record liabilities when the likelihood that the liability has been incurred is probable, but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. The Company does not believe the ultimate outcome of any currently pending lawsuit will have a material adverse effect upon the Company’s financial statements, and the liability is believed to be only reasonably possible or remote. In July 2021, Legacy Archaea settled certain lawsuits on confidential terms with the lawsuits being dismissed with prejudice.