Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.23.1
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Concentrations of credit risk The net sales to the following customers comprised more than 10% of revenues for the periods presented.
Three Months Ended March 31,
2023 2022
Net Sales % of Revenue Net Sales % of Revenue
Customer A $ 830  23  % $ —  —  %
Customer B 788  22  % —  —  %
Customer C —  —  % 1,478  27  %
Customer D —  —  % 1,965  36  %
Customer E —  —  % 720  13  %
Total of customers with sales greater than 10% $ 1,618  45  % $ 4,163  76  %
Total of customers with sales less than 10% 1,948  55  % 1,249  24  %
Gross Revenue $ 3,566  100  % $ 5,412  100  %
Customer refunds(1)
(2,255) — 
Total Revenue, net of customer refunds $ 1,311  $ 5,412 

(1)    Customer refunds are related to the recall for certain 2021-2022 model year FE4-129 vehicles (“ZEV4”) that were manufactured with Romeo Power Systems, Inc (“Romeo”) battery packs. See section “Revenue Recognition” below for more detail concerning the accounting treatment and the section “Warranties and Recall Campaigns” for more detail on the recall.
Schedule of allowance for doubtful accounts activity The following table details the change in the allowance for credit losses for the periods indicated:
Three Months Ended March 31,
2023 2022
Balance at beginning of period $ 2,028 $ 3,349
Credit loss expense 961 48
Deductions
Balance at end of period $ 2,989 $ 3,397
Schedule of estimated useful lives of our major classes of property and equipment The estimated useful lives of the Company’s major classes of property and equipment are as follows:
Major Class of Property and Equipment Estimated Useful Lives
Machinery and equipment 7 years
Vehicles 5 years
Leasehold improvements 5 years
Computer equipment 3 years
Software 3 years
Furniture and fixtures 7 years
Schedule of disaggregates revenue by major source
The following table disaggregates revenue by major source:

Three Months Ended March 31,
2023 2022
ZEVs $ 3,222 $ 5,179
Other 344 233
Gross Revenue $ 3,566 $ 5,412
Customer refunds(1)
(2,255)
Total Revenue, net of customer refunds $ 1,311 $ 5,412
(1) Customer refunds are related to the recall for ZEV4 vehicles that were manufactured with Romeo battery packs.
Schedule of changes in contract liabilities Changes in contract liabilities are as follows:
Balance as of December 31, 2022
$ 794 
Revenues recognized (520)
Increase due to billings 623 
Balance as of March 31, 2023
$ 897 
Schedule of fair value hierarchy
The following tables set forth by level within the fair value hierarchy the Company’s financial assets and liabilities that were measured at fair value on a recurring basis in the consolidated balance sheets.

Level 1 Level 2 Level 3
As of March 31, 2023
Financial assets
Cash equivalents $ 31,768  $ —  $ — 
Financial Liabilities    
Warrant liability $ —  $ —  $ 54 
Derivative liability —  —  26 
Earnout liability —  —  1,859 
As of December 31, 2022
Financial assets
Cash equivalents $ 51,351  $ —  $ — 
Financial Liabilities    
Warrant liability $ —  $ —  $ 60 
Derivative liability —  —  78 
Earnout liability —  —  2,265 
Schedule of earnout liability The following table provides a reconciliation of the beginning and ending balances for the earnout liability measured at fair value using significant unobservable inputs (Level 3):
Three Months Ended March 31,
2023 2022
Balance at beginning of period $ 2,265  $ 83,144 
(Gain) loss (406) (6,172)
Balance at end of period $ 1,859  $ 76,972