Company: SPH
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0000950170-25-015135
Chunk: 120

Company: SUBURBAN PROPANE PARTNERS LP
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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.  Additionally, rDME is a 

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carrier for hydrogen, making it easy to deliver this renewable fuel for the growing hydrogen fuel cell vehicle industry.  During the first quarter of fiscal 2025, the Partnership purchased three additional secured convertible notes issued by Oberon.  As a development-stage entity, Oberon is reliant on raising capital to fund its operations and strategic growth initiatives.   Due to Oberon’s financial condition, which raises substantial doubts about its ability to continue as a going concern, as well as the uncertainty about potential third-party capital infusion, the Partnership determined that its investment in Oberon was fully impaired as of December 28, 2024.  As a result, the Partnership recorded an other-than-temporary impairment charge of $10,213 during the first quarter of fiscal 2025, recognized in “Other, net” on the condensed consolidated statement of operations, to write down the carrying value of its investment in Oberon to $0.These strategic investments were made to support the Partnership’s Go Green with Suburban Propane corporate pillar, which focuses on advocating for the clean-burning and versatile nature of propane and renewable propane as a solution to a lower carbon future and investing in innovative, renewable energy alternatives to lower GHG emissions.  The investments in IH and Oberon are being accounted for under the equity method of accounting and were included in “Other assets” within the condensed consolidated balance sheets, and the Partnership’s equity in their losses were included in “Other, net” within the condensed consolidated statements of operations.On November 6, 2024, the Partnership acquired the propane assets and operations of a propane retailer headquartered in New Mexico for $53,000, including $4,000 for non-compete consideration, plus working capital acquired.  As of December 28, 2024, $46,500 was paid and the remainder of the purchase price will be funded in accordance with the terms of the asset purchase and non-compete agreements.  This acquisition was consummated pursuant to the Partnership’s strategic growth initiatives for the core propane business.  The preliminary purchase price allocation and results of operations of the acquired business was not material to the Partnership’s condensed consolidated financial position and statement of operations.

5.Financial Instruments and Risk ManagementCash, Cash Equivalents and Restricted Cash.  The Partnership considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.  In accordance with the indenture, as amended, and loan agreement, as amended