Arcimoto (FUVV) 10-Q 9 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	May 06, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	Arcimoto Inc
Entity Central Index Key	0001558583
Amendment Flag	false
Trading Symbol	FUV
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		16,346,991

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 4,883,194	$ 4,903,019
Accounts receivable, net	4,167
Inventory	2,565,290	1,703,573
Other current assets	2,118,700	1,626,644
Total current assets	9,571,351	8,233,236
Property and equipment, net	5,713,585	5,809,774
Security deposits	41,988	41,988
Total assets	15,326,924	14,084,998
Current liabilities:
Accounts payable	401,115	717,151
Accrued liabilities	262,410	246,418
Customer deposits	876,824	454,624
Current portion of capital lease obligations	405,952	383,800
Note payable, net of discount	2,757,807	2,677,076
Total current liabilities	4,704,108	4,479,069
Warranty reserve	25,200	25,200
Long-term capital lease obligations, net of current portion	1,487,628	1,513,595
Total long-term liabilities	1,512,828	1,538,795
Total liabilities	6,216,936	6,017,864
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, no par value, 20,000,000 authorized, 16,340,378 and 15,032,341 issued and outstanding as of March 31, 2019 and December 31, 2018, respectively	34,117,535	30,102,738
Additional paid-in capital	1,027,319	930,869
Accumulated deficit	(26,034,866)	(22,966,473)
Total stockholders' equity	9,109,988	8,067,134
Total liabilities and stockholders' equity	15,326,924	14,084,998
Series A-1 Preferred Stock
Stockholders' equity:
Preferred stock value
Total stockholders' equity
Class C Preferred Stock
Stockholders' equity:
Preferred stock value
Total stockholders' equity

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Common stock, par value
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	16,340,378	15,032,341
Common stock, shares outstanding	16,340,378	15,032,341
Series A-1 Preferred Stock
Preferred stock, par value
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Class C Preferred Stock
Preferred stock, par value
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	2,000,000
Preferred stock, shares outstanding	2,000,000

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue
Product sales - related party		$ 625
Product sales		31
Other revenue	2,645
Total revenues	2,645	656
Cost of goods sold	1,467
Gross profit	1,178	656
Operating expenses
Research and development	1,060,016	1,047,799
Sales and marketing	245,382	355,515
General and administrative	1,571,308	642,147
Total operating expenses	2,876,706	2,045,461
Loss from operations	(2,875,528)	(2,044,805)
Other expense and (income)
Interest expense	193,273	3,601
Other income, net	(408)	(334)
Net loss	$ (3,068,393)	$ (2,048,072)
Weighted-average common shares outstanding - basic and diluted	15,423,999	15,896,575
Net loss per common share - basic and diluted	$ (0.20)	$ (0.13)

Condensed Statements of Stockho

Condensed Statements of Stockholders’ Equity (Deficit) (Unaudited) - USD ($)	Series A-1 Preferred Stock	Class C Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2017			$ 27,177,790	$ 519,340	$ (11,915,458)	$ 15,781,672
Balance, shares at Dec. 31, 2017			15,872,001
Issuance of common stock for cash/services			$ 57,199			57,199
Issuance of common stock for cash/services, shares			20,000
Exercise of stock options			$ 29,259			29,259
Exercise of stock options, shares			14,200
Warrants exercised - cashless
Warrants exercised - cashless, shares			13,014
Stock-based compensation				56,396		56,396
Net loss					(2,048,072)	(2,048,072)
Balance at Mar. 31, 2018			$ 27,264,248	575,736	(13,963,530)	13,876,454
Balance, shares at Mar. 31, 2018			15,919,215
Balance at Dec. 31, 2018			$ 30,102,738	930,869	(22,966,473)	8,067,134
Balance, shares at Dec. 31, 2018		2,000,000	15,032,341
Issuance of common stock for cash/services			$ 4,264,999			4,264,999
Issuance of common stock for cash/services, shares			1,088,333
Exercise of stock options			$ 5,000			5,000
Exercise of stock options, shares			1,613
Offering costs			$ (255,202)			(255,202)
Stock options exercised - cashless
Stock options exercised - cashless, shares			53,513
Warrants exercised - cashless
Warrants exercised - cashless, shares			164,578
Stock-based compensation				96,450		96,450
Net loss					(3,068,393)	(3,068,393)
Balance at Mar. 31, 2019			$ 34,117,535	$ 1,027,319	$ (26,034,866)	$ 9,109,988
Balance, shares at Mar. 31, 2019		2,000,000	16,340,378

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
OPERATING ACTIVITIES
Net loss	$ (3,068,393)	$ (2,048,072)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	171,387	73,524
Amortization of debt discount	80,731
Loss on disposal of property and equipment		19,000
Stock-based compensation	96,450	113,596
Changes in operating assets and liabilities:
Accounts receivable	(4,167)	(95)
Inventory	(861,717)	(422,035)
Other current assets	(492,056)	(264,679)
Accounts payable	(320,236)	(289,643)
Accrued liabilities	15,992	(1,130)
Customer deposits	422,200	31,897
Net cash used in operating activities	(3,959,809)	(2,787,637)
INVESTING ACTIVITIES
Purchases of certificates of deposit		(5,000,000)
Redemption of certificates of deposit		1,500,000
Proceeds from sale of property and equipment	41,680	250
Purchases of property and equipment	(23,828)	(65,271)
Net cash provided by (used in) investing activities	17,852	(3,565,021)
FINANCING ACTIVITIES
Proceeds from sale of stock	4,264,999
Proceeds from the exercise of stock options	5,000	29,259
Payment of offering costs	(255,202)
Payment of capital lease obligations	(92,665)	(75,422)
Net cash provided by (used in) financing activities	3,922,132	(46,163)
Net cash decrease for period	(19,825)	(6,398,821)
Cash at beginning of period	4,903,019	7,824,109
Cash at end of period	4,883,194	1,425,288
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest	36,984	3,601
Cash paid during the period for income taxes	150
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Portion of equipment acquired through capital leases	88,850	999,632
Equipment purchases in accounts payable	$ 4,200	$ 1,273

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1: NATURE OF OPERATIONS Arcimoto, Inc. (the “Company”) was originally formed on November 21, 2007 as WTP Incorporated, an Oregon Corporation, and later changed its name to Arcimoto, Inc. The Company was founded in order to build products that catalyze the shift to a sustainable transportation system. The first step in this shift has been developing an affordable, daily utility, pure electric vehicle. Over the past eleven years, the Company has developed a revolutionary new vehicle platform designed around the needs of everyday drivers. Its first products are the Fun Utility Vehicle® (“FUV”), Rapid Responder™, and Deliverator™, the first real, affordable, and fossil-free alternative for the vast majority of daily trips. Compared to the average car, the FUV has dropped 3/4 of the weight and 2/3 of the footprint, in order to bring the joy of ultra-efficient, pure electric driving to everyday commuters and fleets. Risks and Uncertainties The Company currently has limited production and distribution capabilities. Facilities to manufacture vehicles on a scale of up to an estimated 10,000 vehicles per year are substantially complete. Arcimoto also does not have a history of higher-scale production and may encounter delays, flaws, or inefficiencies in the manufacturing process, which may prevent or delay achieving higher-scale production within the anticipated timeline. The Company believes that small scale Retail Series production will commence by the second quarter 2019; however, delays in finalizing the FUV testing, design, availability of inventory, and machinery tooling customization could delay such estimates. Part of the Company’s strategy is to use vehicle rentals to generate a positive cash flow from customer test drive activities. At the end of October 2018, Arcimoto temporarily opened its first vehicle rental location in Eugene, Oregon as a test bed for developing the rental operations. The Company acquired rental liability insurance and is pursuing SLI (supplemental liability insurance) to offer to rental customers. Arcimoto learned a great deal from this short-term test that the Company believes will help refine the rental operations in preparation for a planned reopening of the Oregon rental facility and potential launch of the San Diego rental operation after Retail Series FUV production has commenced. As with any strategy, there is the risk that the Arcimoto rental business will not be successful. As of March 31, 2019, the Company has $2,565,290 in inventory and approximately $1,623,000 in prepaid inventory not received yet. Prepaid inventory is included in other current assets. Certain inventory components are included in prepaid inventory are long lead time parts requiring payment in advance. The Company has limited experience in developing, training and managing a sales force, and will incur substantial additional expenses marketing its current and future products and services. Developing a full marketing and sales force is also time consuming and could delay launch of future products and services. In addition, the Company will compete with companies that currently have extensive and well-funded marketing and sales operations. The Company’s marketing and sales efforts may be unable to compete successfully against these companies. Further, the Company’s business and operations are sensitive to general governmental policy, business and economic conditions in the United States and worldwide. A host of factors beyond the Company’s control could cause fluctuations in these conditions. Other developments, including but not limited to economic recessions, trends in vehicle manufacturing, consumer taste, availability of inventory, and changes in government policy related to cars and motorcycles, could have a material adverse effect on the Company’s financial condition and the results of its operations. The Company’s industry is characterized by rapid changes in technology and customer demands. As a result, the Company’s products and services may quickly become obsolete and unmarketable. The Company’s future success will depend on its ability to adapt to technological advances, anticipate customer demands, develop new products and services and enhance our current products and services on a timely and cost-effective basis. Further, the Company’s products and services must remain competitive with those of other companies with substantially greater resources. The Company may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new products and services or enhanced versions of existing products and services. Also, the Company may not be able to adapt new or enhanced products and services to emerging industry standards, and the Company’s new products and services may not be favorably received. In addition, we may not have the capital resources to further the development of existing and/or new products.

Going Concern

Going Concern	3 Months Ended
	Mar. 31, 2019
Going Concern [Abstract]
GOING CONCERN	NOTE 2: GOING CONCERN The accompanying financial statements have been prepared on a basis that the Company is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has experienced recurring operating losses and negative operating cash flows since inception. The Company has not achieved positive earnings and operating cash flows to enable the Company to finance its operations internally. Funding for the business to date has come primarily through the issuance of debt and equity securities. The Company estimates it will require additional funding during the fourth quarter of 2019 to continue to operate in the normal course of business. Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern. Although the Company’s objective is to increase its revenues from the sales of its products within the next few years sufficient to generate positive operating and cash flow levels, there can be no assurance that the Company will be successful in this regard. The Company will need to raise additional capital to fund its operations, which it intends to obtain through debt and/or equity offerings. Funds on hand and any follow-on capital, will be used to invest in the business to expand sales and marketing efforts, enhance current product by continuing research and development to bring the FUV to retail production, continue to build custom tooling and optimize our production facility, and fund operations until positive cash flow is achieved. The need for additional capital may be adversely impacted by uncertain market conditions or approval by regulatory bodies.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 3: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Information The accompanying unaudited financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and pursuant to the instructions to Form 10-Q promulgated by the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all information and disclosures required by GAAP for complete financial statement presentation. In the opinion of management, the accompanying condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company’s financial position as of March 31, 2019, and the results of its operations and its cash flows for the three months ended March 31, 2019 and 2018. Results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2019. Basis of Presentation The accounting and reporting policies of the Company conform with generally accepted accounting principles in the United States, (“GAAP”). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Measurements The Company’s financial instruments consist primarily of cash and cash equivalents and equipment financing obligations. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. The estimated fair value is not necessarily indicative of the amounts the Company would realize in a current market exchange or from future earnings or cash flows. The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. The three-level hierarchy for fair value measurements is defined as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability other than quoted prices, either directly or indirectly, including inputs in markets that are not considered to be active; and ● Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the accompanying financial statements for current assets and current liabilities approximate the fair value because of the immediate or short-term maturities of the financial instruments. As of March 31, 2019 and December 31, 2018, the Company did not have any level 2 or level 3 instruments. Inventory Inventory is stated at the lower of cost (using the first-in, first-out method “FIFO”) or market. Inventories consist of purchased electric motors, electrical storage and transmission equipment, and component parts. March 31, December 31, 2019 2018 Raw materials and component parts $ 2,186,620 $ 1,531,032 Work-in-progress 202,349 15,683 Finished goods 176,321 156,858 Total $ 2,565,290 $ 1,703,573 Offering Costs The Company accounts for offering costs in accordance with FASB ASC 340, Other Assets and Deferred Costs Customer Deposits Refundable customer deposits are generally held in a separate deposit account. Revenue is not recognized on refundable customer deposits until the deposit is applied to a non-refundable vehicle order, the vehicle manufacturing process is completed, the vehicle is ready for pickup by or delivery to the customer. Revenue Recognition The Company recognizes revenue when the earnings process is complete. This generally occurs when products are ready for pickup by or delivery to the customer in accordance with the sales agreement or purchase order, which is when control of the vehicle passes to the customer. The Company’s shipping terms are generally F.O.B. shipping point, where title is transferred, and revenue is recognized when the products are shipped to or picked up by customers. Research and Development Expenses relating to research and development are expensed as incurred. Vehicle and battery research and development expenses consisted of approximately $1,060,000 and $1,048,000, for the three-month periods ended March 31, 2019 and 2018, respectively. Net Earnings or Loss per Share The Company’s computation of earnings (loss) per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common shareholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., common stock warrants and common stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share is the same for all periods presented because all common stock warrants and common stock options outstanding were anti-dilutive. At March 31, 2019 and 2018, the Company excluded the outstanding securities summarized below, which entitled the holders thereof to ultimately acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, March 31, Class C preferred stock 2,000,000 - Warrants to purchase common stock 693,004 958,004 Stock options to purchase common stock 1,192,057 970,000 Underwriters and investor warrants 1,065,095 122,238 Warrants issued to vendors outside of employee plans 47,000 47,000 Total 4,997,165 2,097,242 Recent Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The amendments are effective for fiscal years beginning after December 15, 2019 for emerging growth companies, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company expects to adopt the new standard on January 1, 2020. The Company anticipates the adoption will not have a material impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. ASU 2018-13 removes certain disclosures, modifies others and introduces additional disclosure requirements for entities. The amendments in ASU 2018-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. We do not believe the adoption of ASU 2018-13 will have a material effect on our financial statements and their disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which supersedes ASC Topic 840, Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on their balance sheets for all the leases with terms greater than twelve months. Based on certain criteria, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2019 for emerging growth companies, and interim periods within those years, with early adoption permitted. We will adopt this new standard on January 1, 2020. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon its adoption of Topic 842, which will increase the total assets and total liabilities that the Company reports relative to such amounts prior to adoption. Adoption of Recent Accounting Pronouncements On August 17, 2018, the SEC issued Rule 33-10532 which requires registrants, including smaller reporting companies, to disclose in interim periods on Form 10-Q (1) the changes in each caption of stockholders’ equity and noncontrolling interests for the “current and comparative year-to-date periods, with subtotals for each interim period” and (2) the amount of dividends per share for each class of shares. Rule 33-10532 became effective 30 days after its publication on November 5, 2018. On September 25, 2018 the SEC released guidance advising it will not object to a registrant adopting the requirement to include changes in stockholders’ equity in the Form 10-Q for the first quarter beginning after the effective date of the rule. The Company adopted Rule 33-10532 on its effective date and has presented the required statement of stockholders’ equity beginning in its first quarterly Form 10-Q filing in 2019.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 4: CONCENTRATIONS Accounts Payable For the three months ended March 31, 2019, and 2018, the Company, respectively, had one and four significant vendors that accounted for more than 10% of the Company’s accounts payables balances. The Company believes the loss of this vendor in 2019 could have an adverse impact on the Company’s business or operations. The Company believes the loss of the four vendors in 2018 did not have an adverse impact on the Company’s business or operations.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5: PROPERTY AND EQUIPMENT As of March 31, 2019 and December 31, 2018, our property and equipment consisted of the following: March 31, December 31, Computer equipment and software $ 51,594 $ 51,594 Furniture and fixtures 46,839 46,839 Machinery and equipment 4,683,529 4,683,529 FUV rental fleet 71,998 71,998 Leasehold improvements 349,008 349,008 Fixed assets in process 1,157,543 1,082,345 6,360,511 6,285,314 Less: accumulated depreciation (646,926 ) (475,539 ) Total $ 5,713,585 $ 5,809,774 Fixed assets in process is comprised primarily of Beta FUVs being reworked for deployment into the rental fleet, leasehold improvements, tooling and equipment related to the manufacturing of our vehicles. Completed assets are transferred to their respective asset class and depreciation begins when the asset is ready for its intended use. Depreciation expense was approximately $171,000 and $74,000 during the three months ended March 31, 2019 and 2018, respectively.

Capital Lease Obligations

Capital Lease Obligations	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
CAPITAL LEASE OBLIGATIONS	NOTE 6: CAPITAL LEASE OBLIGATIONS As of March 31, 2019, the Company has financed a total of approximately $2,232,000 of its capital equipment purchases with monthly payments ranging from $437 to $8,582, repayment terms ranging from 48 to 60 months, and effective interest rates ranging from 4.52% to 9.86%. Total monthly capital lease payments as of March 31, 2019 are approximately $45,600. These lease obligations mature ranging from December 2021 through February 2024 and are secured by approximately $2,814,000 in underlying assets which have $204,810 in accumulated depreciation as of March 31, 2019. The balance of capital lease obligations was approximately $1,894,000 and $1,897,000 as of March 31, 2019 and December 31, 2018, respectively.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
NOTES PAYABLE	NOTE 7: NOTES PAYABLE On December 27, 2018, the Company entered into a Subscription Agreement (the “Subscription Agreement”) with FOD Capital, LLC, a Florida limited liability company (the “Investor”), pursuant to which the Company issued to the Investor (i) 500,000 shares of its common stock, no par value per share at a purchase price of $3.00 per share (the “Shares”), (ii) a warrant to purchase up to 942,857 shares of common stock at $3.50 per share (the “Warrant”), and (iii) a senior secured note in the principal amount of $3,000,000 (the “Note”). The short-term note was recorded with an original issue discount of $322,924 which will be amortized as interest expense over the Note’s twelve-month term. During the three months ended March 31, 2019, the Company amortized $80,731 with a remaining unamortized discount of $242,193. See Note 8 for additional details.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 8: STOCKHOLDERS’ EQUITY Preferred Stock The Company is authorized to issue 5,000,000 shares of preferred stock, no par value, of which 1,500,000 shares were designated as Series A-1 Preferred Stock and 2,000,000 are designated as Class C Preferred Stock. The Series A-1 Preferred Stock is convertible at any time after issuance at the option of the holder into shares of common stock at the original issue price of the Series A-1 Preferred Stock. The Series A-1 Preferred Stock is also subject to mandatory conversion provisions upon an initial public offering raising $15 million or more and is not redeemable. To prevent dilution, the conversion price of the Series A-1 Preferred Stock is to be adjusted for any issuance of securities, excluding exempt securities, which change the number of shares of common stock outstanding. The Series A-1 Preferred Stockholders are entitled to equal voting rights to common stockholders on an as-converted basis and receive preference to the common stockholders upon liquidation. The Series A-1 Preferred Stock was converted to common stock as noted above. As a result of the share exchange agreement described below, the Company was authorized to issue 2,000,000 of Class C Preferred Stock. On November 15, 2018, all 2,000,000 were issued in the exchange noted below. Except as otherwise required by law or expressly provided in the Related Articles, each share of Class C Preferred Stock has one vote for the election of directors and on all matters submitted to a vote of shareholders of the Company. The Company is not obligated to redeem or repurchase any shares of Class C Preferred Stock. Shares of Class C Preferred Stock are not otherwise entitled to any redemption rights, or mandatory sinking fund or analogous fund provisions. Common Stock The Company is authorized to issue 20,000,000 shares of common stock, no par value. If a majority of the Stockholders approve the resolution at the May 11, 2019, annual meeting, the number of authorized common shares will increase from 20,000,000 to 60,000,000 and the 2,000,000 shares of Class C preferred stock will automatically convert to common stock. The Company has reserved a total of 2,531,939 shares of its common stock pursuant to the equity incentive plans (see Note 9). The Company has 1,885,061 and 2,236,893 stock options and warrants outstanding under these plans as of March 31, 2019 and December 31, 2018, respectively. As of March 31, 2019, the Company has reserved an additional 942,857 shares of its common stock for warrants pursuant to the Subscription Agreement discussed above. As of March 31, 2019, these warrants were fully vested. Common Stock Issued for Compensation During the three months ended March 31, 2018, the Company issued 20,000 restricted common shares for services with a fair value of $57,199. The shares were valued based on the stock price at the time of the grant. Exercise of Stock Options and Warrants On January 31, 2018, 14,200 employee options were exercised at a price per share of $2.0605 for total proceeds to the Company of $29,259. On March 28, 2019, 1,613 employee options were exercised at a price per share of $3.10 for total proceeds to the Company of $5,000. During the three months ended March 31, 2018, a total of 15,000 employee warrants with an exercise price of $0.50 per share were exercised in cashless transactions at a market price of $3.7776 per share, which was based on the average of the Company’s daily closing prices surrounding the transaction dates amounting to the issuance of a total of 13,014 shares of the Company’s common stock. During the three months ended March 31, 2019, a total of 200,000 employee warrants, 30,000 with an exercise price of $0.50 per share and 170,000 with an exercise price of $0.9375 per share were exercised in cashless transactions at a market price of $5.212 per share, which was based on the average of the Company’s daily closing prices surrounding the transaction dates amounting to the issuance of a total of 164,578 shares of the Company’s common stock. Share Exchange Agreement On November 15, 2018, the Company entered into a Share Exchange Agreement with the President, CEO and Chairman of the Board of Directors of the Company (the “CEO”). Pursuant to the Agreement, the CEO exchanged 2 million of his shares of company common stock for 2 million shares of newly designated Class C preferred stock. These shares will automatically convert back to 2 million shares of common stock upon the filing of an amendment to the Restated Articles of the Company that increases the number of authorized shares of common stock. There was no accounting impact as a result of this exchange. Public Offering of Common Stock On March 25, 2019, the Company entered into Subscription Agreements with certain investors relating to a public offering of 800,000 shares of common stock directly to investors, for an offering price of $4.25 a share. The gross proceeds of $3,400,000 were offset by approximately $255,000 in various legal and transaction fees. With the net proceeds of approximately $3,145,000 from the offering, the Company plans to utilize these funds for operating expenses, inventory costs, and offering costs, amongst other general corporate purposes. The March 25, 2019 Offering was made pursuant to the Company’s registration statement on Form S-3, previously filed with the Securities and Exchange Commission (the “SEC”) on October 3, 2018, and declared effective by the SEC on October 17, 2018, a base prospectus forming a part of the effective registration statement, and a prospectus supplement dated March 25, 2018. Private Offering of Common Stock During January and February 2019, the Company entered into unregistered Subscription Agreements under SEC series 4(a)(2) offering regulations, with four independent investors, pursuant to which the Company issued to the Investors at total of 288,333 shares of its common stock, no par value per share at a purchase price of $3.00 per share. With the net proceeds of approximately $865,000 from the offering, the Company plans to utilize these funds for operating expenses, inventory costs, and offering costs, amongst other general corporate purposes. Entry into a Material Definitive Agreement On December 27, 2018, the Company entered into a Subscription Agreement (the “Subscription Agreement”) with FOD Capital, LLC, a Florida limited liability company (the “Investor”), pursuant to which the Company issued to the Investor (i) 500,000 shares of its common stock, no par value per share at a purchase price of $3.00 per share (the “Shares”), (ii) a warrant to purchase up to 942,857 shares of common stock at $3.50 per share (the “Warrant”), and (iii) a senior secured note in the principal amount of $3,000,000 (the “Note”). The Shares, Warrant and Note were purchased together by the Investor for an aggregate amount of $4.5 million but were issued separately (collectively, the “Transaction”). The Company offered the Shares and Warrant in a public offering pursuant to the Company’s registration statement filed with the SEC that was declared effective on October 17, 2018, as well as the prospectus supplement filed on December 27, 2018 (the “Shelf Registration Statement”). The Note was issued pursuant to an exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended. The Shares were issued for an aggregate purchase price of $1,500,000. In connection with the Share issuance, the Company granted the Investor with the exclusive option on the franchise rights for the lower Florida Keys, subject to the terms contained in the Company’s standard franchise agreement. The Warrant has a 3-year term. The Company reserved 942,857 shares of common stock for issuance pursuant to the potential exercise of the Warrant and, so long as the Warrant remains outstanding, the Company will keep reserved for issuance under the Warrant that number of shares of Common Stock at least equal to the maximum number of shares of common stock as shall be necessary to satisfy the Company’s obligation to issue shares of common stock under the Warrant then outstanding (without regard to any limitations on exercise). The warrant was valued based on the Black-Scholes option pricing model using similar inputs to those described in Note 9, other than the contractual life which was based on the term of the warrant. The relative fair value of the warrant in relation to the debt and equity component of the Transaction was $111,374. The Note is secured by a perfected first secured lien on all the Company’s assets except for equipment assets securing existing or future leases. Interest will accrue at 10% per annum and will be paid at maturity or payoff of the note, with a minimum of one year of interest paid at such time. The Note matures on December 27, 2019 and, subject to certain conditions, can be extended for an additional six months upon payment of $300,000 to the Investor by the Company. In connection with the Note, the Company entered into a Security Agreement, an Intellectual Property Security Agreement and a Collateral Assignment of Lease Agreement, each dated as of December 27, 2018 (collectively, the “Collateral Documents”). The short-term note was recorded with an original issue discount of $322,924 which will be amortized as interest expense over the Note’s twelve-month term. The discount is based on the allocation of costs and warrants associated with the Transaction. See Note 7 for disclosure of amortization of debt discount.

Stock-Based Payments

Stock-Based Payments	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED PAYMENTS	NOTE 9: STOCK-BASED PAYMENTS The Company grants stock options and warrants pursuant to the 2018 Omnibus Stock Incentive Plan (“2018 Plan”), Amended and Restated 2015 Stock Incentive Plan (“2015 Plan”) and the Second Amended and Restated 2012 Employee Stock Benefit Plan (“2012 Plan”). The Company measures employee stock-based awards at grant-date fair value and recognizes employee compensation expense on a straight-line basis over the vesting period of the award. Grants to non-employees are expensed at the earlier of (i) the date at which a commitment for performance by the counterparty to earn the equity instrument is reached and (ii) the date at which the counterparty’s performance is complete. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions, including the fair value of the Company’s common stock, and for stock options, the expected life of the option, and expected stock price volatility. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The Company uses the following inputs when valuating stock-based awards. The expected life of employee stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock option grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The expected life of awards that vest immediately use the contractual maturity since they are vested when issued. For stock price volatility, the Company uses public company compatibles as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option at the grant-date. Stock-based compensation, including stock-options, warrants and stock issued for compensation is included in the statement of operations as follows: Three months ended 2019 2018 Research and development $ 21,008 $ 31,015 Sales and marketing 13,744 64,851 General and administrative 61,698 17,730 Total $ 96,450 $ 113,596 2018 Omnibus Stock Incentive Plan The 2018 Plan was approved by the Board of Directors and then the Company’s shareholders at the Company’s 2018 annual meeting of shareholders held on June 9, 2018. The 2018 Plan provides the Company the ability to grant to employees, directors, consultants or advisors shares of common stock of the Company through the grant of equity awards, including, but not limited to, options that are incentive stock options or non-qualified stock options (“NQSOs”) and restricted stock, provided that only employees are entitled to receive incentive stock options in accordance with IRS guidelines. The Company reserved 1,000,000 shares of common stock under the 2018 Plan. Awards that are forfeited generally become available for grant under the 2018 Plan. On September 1, 2018, 617,000 options were issued under the 2018 Plan, 109,000 of those grants were forfeited, leaving 508,000 grants outstanding; none of which have vested under the 2018 Plan as of March 31, 2019. Employee stock-based compensation expense included in operating expenses for the three months ended March 31, 2019 was $69,304. Total compensation cost related to non-vested awards issued on September 1, 2018 under the 2018 Plan not yet recognized as of March 31, 2019 was approximately $701,000 and will be recognized on a straight-line basis through the end of the vesting periods which is September 30, 2021. The amount of future stock option compensation expense could be affected by any future option grants or by any forfeitures. 2015 Stock Incentive Plan The 2015 Plan provides the Company the ability to grant to employees, directors, consultants or advisors shares of common stock of the Company through the grant of options that are incentive stock options or NQSOs and/or the grant of restricted stock, provided that only employees are entitled to receive incentive stock options in accordance with IRS guidelines. The Company reserved 1,000,000 shares of common stock for delivery under the 2015 Plan. Awards that are forfeited generally become available for grant under the 2015 Plan. There were no grants made under the 2015 Plan during the three months ended March 31, 2019 or 2018. Employee stock-based compensation expense included in operating expenses for the three months ended March 31, 2019 and 2018 was $27,146 and $51,171, respectively. Total compensation cost related to non-vested awards not yet recognized as of March 31, 2019 was approximately $132,000 and will be recognized on a straight-line basis through the end of the vesting periods or December 31, 2020. The amount of future stock option compensation expense could be affected by any future option grants or by any forfeitures. As of March 31, 2019, 142,882 options are still issuable under the 2015 Plan. 2012 Employee Stock Benefit Plan The 2012 Plan provides the Company the ability to grant to directors, employees, consultants, advisors or independent contractors shares of common stock of the Company through the grant of warrants and/or the grant of common stock. The Company reserved 1,000,000 shares of common stock for delivery under the 2012 Plan. Warrants issued and outstanding under the 2012 Plan as of March 31, 2019 and 2018 were 693,004 and 958,004, respectively. Warrants expire 10 to 15 years from the grant date and were vested when issued. As of March 31, 2019, 11,996 warrants are still issuable under the 2012 Plan.

Customer Deposits

Customer Deposits	3 Months Ended
	Mar. 31, 2019
Other Liabilities Disclosure [Abstract]
CUSTOMER DEPOSITS	NOTE 10: CUSTOMER DEPOSITS The Company has received customer deposits ranging from $100 to $10,100 per vehicle for Retail Series production vehicles and $42,000 per vehicle for Signature Series vehicles for purposes of securing a vehicle production slot. As of March 31, 2019 and December 31, 2018, the Company’s balance of deposits received was approximately $877,000 and $455,000, respectively. As of March 31, 2019 and December 31, 2018, $387,824 and $370,624, respectively, of these deposits were refundable upon demand. Deposits are included in current liabilities in the accompanying balance sheets. When a customer’s order is ready to enter the production process, the customer is notified that if they would like to proceed with the purchase of a vehicle, their deposit will no longer be refundable and any additional deposit required must be paid prior to the start of the manufacturing process. Customer deposits from related parties total $1,700 and $1,700 as of March 31, 2019 and December 31, 2018, respectively.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11: COMMITMENTS AND CONTINGENCIES Litigation On March 11, 2018, the Company was served with a lawsuit entitled John R Switzer vs W.R. Hambrecht & Co. LLC et al. Jay Mendelson v. Arcimoto, Inc Mendelson Switzer

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12: SUBSEQUENT EVENTS On April 5, 2019, the Company granted 141,600 options under the 2015 Stock Incentive Plan, leaving 1,282 options available for issuance. On April 5, 2019, the Company granted 498,600 options under the 2018 Omnibus Stock Incentive Plan, leaving 1,900 options available for issuance.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accounting and reporting policies of the Company conform with generally accepted accounting principles in the United States, (“GAAP”).
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value Measurements	Fair Value Measurements The Company’s financial instruments consist primarily of cash and cash equivalents and equipment financing obligations. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments. The estimated fair value is not necessarily indicative of the amounts the Company would realize in a current market exchange or from future earnings or cash flows. The Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, Fair Value Measurements and Disclosures The standard also prioritizes, within the measurement of fair value, the use of market-based information over entity specific information and establishes a three-level hierarchy for fair value measurements based on the nature of inputs used in the valuation of an asset or liability as of the measurement date. The three-level hierarchy for fair value measurements is defined as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets; ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability other than quoted prices, either directly or indirectly, including inputs in markets that are not considered to be active; and ● Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The carrying amounts reported in the accompanying financial statements for current assets and current liabilities approximate the fair value because of the immediate or short-term maturities of the financial instruments. As of March 31, 2019 and December 31, 2018, the Company did not have any level 2 or level 3 instruments.
Inventory	Inventory Inventory is stated at the lower of cost (using the first-in, first-out method “FIFO”) or market. Inventories consist of purchased electric motors, electrical storage and transmission equipment, and component parts. March 31, December 31, 2019 2018 Raw materials and component parts $ 2,186,620 $ 1,531,032 Work-in-progress 202,349 15,683 Finished goods 176,321 156,858 Total $ 2,565,290 $ 1,703,573
Offering Costs	Offering Costs The Company accounts for offering costs in accordance with FASB ASC 340, Other Assets and Deferred Costs
Customer Deposits	Customer Deposits Refundable customer deposits are generally held in a separate deposit account. Revenue is not recognized on refundable customer deposits until the deposit is applied to a non-refundable vehicle order, the vehicle manufacturing process is completed, the vehicle is ready for pickup by or delivery to the customer.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when the earnings process is complete. This generally occurs when products are ready for pickup by or delivery to the customer in accordance with the sales agreement or purchase order, which is when control of the vehicle passes to the customer. The Company’s shipping terms are generally F.O.B. shipping point, where title is transferred, and revenue is recognized when the products are shipped to or picked up by customers.
Research and Development	Research and Development Expenses relating to research and development are expensed as incurred. Vehicle and battery research and development expenses consisted of approximately $1,060,000 and $1,048,000, for the three month periods ended March 31, 2019 and 2018, respectively.
Net Earnings or Loss per Share	Net Earnings or Loss per Share The Company’s computation of earnings (loss) per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common shareholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., common stock warrants and common stock options) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. Loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted loss per common share is the same for all periods presented because all common stock warrants and common stock options outstanding were anti-dilutive. At March 31, 2019 and 2018, the Company excluded the outstanding securities summarized below, which entitled the holders thereof to ultimately acquire shares of common stock, from its calculation of earnings per share, as their effect would have been anti-dilutive. March 31, March 31, Class C preferred stock 2,000,000 - Warrants to purchase common stock 693,004 958,004 Stock options to purchase common stock 1,192,057 970,000 Underwriters and investor warrants 1,065,095 122,238 Warrants issued to vendors outside of employee plans 47,000 47,000 Total 4,997,165 2,097,242
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company continually assesses any new accounting pronouncements to determine their applicability. When it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequences of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financial statements properly reflect the change. In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The amendments are effective for fiscal years beginning after December 15, 2019 for emerging growth companies, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company expects to adopt the new standard on January 1, 2020. The Company anticipates the adoption will not have a material impact on its financial statements. In August 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement”. ASU 2018-13 removes certain disclosures, modifies others and introduces additional disclosure requirements for entities. The amendments in ASU 2018-13 for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. We do not believe the adoption of ASU 2018-13 will have a material effect on our financial statements and their disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) which supersedes ASC Topic 840, Leases. ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability on their balance sheets for all the leases with terms greater than twelve months. Based on certain criteria, leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in the income statement. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. ASU 2016-02 is effective for fiscal years beginning after December 15, 2019 for emerging growth companies, and interim periods within those years, with early adoption permitted. We will adopt this new standard on January 1, 2020. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements” that allows entities to apply the provisions of the new standard at the effective date (e.g. January 1, 2019), as opposed to the earliest period presented under the modified retrospective transition approach (January 1, 2017) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The modified retrospective approach includes a number of optional practical expedients primarily focused on leases that commenced before the effective date of Topic 842, including continuing to account for leases that commence before the effective date in accordance with previous guidance, unless the lease is modified. The Company currently expects that most of its operating lease commitments will be subject to the new standard and recognized as operating lease liabilities and right-of-use assets upon its adoption of Topic 842, which will increase the total assets and total liabilities that the Company reports relative to such amounts prior to adoption.
Adoption of Recent Accounting Pronouncements	Adoption of Recent Accounting Pronouncements On August 17, 2018, the SEC issued Rule 33-10532 which requires registrants, including smaller reporting companies, to disclose in interim periods on Form 10-Q (1) the changes in each caption of stockholders’ equity and noncontrolling interests for the “current and comparative year-to-date periods, with subtotals for each interim period” and (2) the amount of dividends per share for each class of shares. Rule 33-10532 became effective 30 days after its publication on November 5, 2018. On September 25, 2018 the SEC released guidance advising it will not object to a registrant adopting the requirement to include changes in stockholders’ equity in the Form 10-Q for the first quarter beginning after the effective date of the rule. The Company adopted Rule 33-10532 on its effective date and has presented the required statement of stockholders’ equity beginning in its first quarterly Form 10-Q filing in 2019.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of inventory	March 31, December 31, 2019 2018 Raw materials and component parts $ 2,186,620 $ 1,531,032 Work-in-progress 202,349 15,683 Finished goods 176,321 156,858 Total $ 2,565,290 $ 1,703,573
Schedule of outstanding securities excluded from calculation of earnings per share	March 31, March 31, Class C preferred stock 2,000,000 - Warrants to purchase common stock 693,004 958,004 Stock options to purchase common stock 1,192,057 970,000 Underwriters and investor warrants 1,065,095 122,238 Warrants issued to vendors outside of employee plans 47,000 47,000 Total 4,997,165 2,097,242

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, December 31, Computer equipment and software $ 51,594 $ 51,594 Furniture and fixtures 46,839 46,839 Machinery and equipment 4,683,529 4,683,529 FUV rental fleet 71,998 71,998 Leasehold improvements 349,008 349,008 Fixed assets in process 1,157,543 1,082,345 6,360,511 6,285,314 Less: accumulated depreciation (646,926 ) (475,539 ) Total $ 5,713,585 $ 5,809,774

Stock-Based Payments (Tables)

Stock-Based Payments (Tables)	3 Months Ended
	Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock-based compensation, including stock-options, warrants and stock issued for compensation	Three months ended 2019 2018 Research and development $ 21,008 $ 31,015 Sales and marketing 13,744 64,851 General and administrative 61,698 17,730 Total $ 96,450 $ 113,596

Nature of Operations (Details)

Nature of Operations (Details)	Mar. 31, 2019USD ($)Vehicles	Dec. 31, 2018USD ($)
Nature of Operations (Textual)
Inventory	$ 2,565,290	$ 1,703,573
Prepaid inventory not received	$ 1,623,000
Number of vehicles | Vehicles	10,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Raw materials and component parts	$ 2,186,620	$ 1,531,032
Work-in-progress	202,349	15,683
Finished goods	176,321	156,858
Total	$ 2,565,290	$ 1,703,573

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Summary of Significant Accounting Policies [Line Items]
Total	4,997,165	2,097,242
Class C preferred stock [Member]
Summary of Significant Accounting Policies [Line Items]
Total	2,000,000
Warrants to purchase common stock [Member]
Summary of Significant Accounting Policies [Line Items]
Total	693,004	958,004
Stock options to purchase common stock [Member]
Summary of Significant Accounting Policies [Line Items]
Total	1,192,057	970,000
Underwriters and investor warrants [Member]
Summary of Significant Accounting Policies [Line Items]
Total	1,065,095	122,238
Warrants issued to vendors outside of employee plans [Member]
Summary of Significant Accounting Policies [Line Items]
Total	47,000	47,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Summary of Significant Accounting Policies (Textual)
Offering costs charged to stockholders' equity	$ 255,000	$ 0
Research and development expenses	$ 1,060,000	$ 1,048,000

Concentrations (Details)

Concentrations (Details) - Accounts Payable [Member] - Vendor	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Concentrations (Textual)
Number of vendor	1	4
Concentration risk percentage	10.00%	10.00%

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 6,360,511	$ 6,285,314
Less: accumulated depreciation	(646,926)	(475,539)
Total	5,713,585	5,809,774
FUV rental fleet [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	71,998	71,998
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	349,008	349,008
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	4,683,529	4,683,529
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	46,839	46,839
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	51,594	51,594
Fixed assets in process [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,157,543	$ 1,082,345

Property and Equipment (Detai_2

Property and Equipment (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property and Equipment (Textual)
Depreciation expense	$ 171,000	$ 74,000

Capital Lease Obligations (Deta

Capital Lease Obligations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Capital Lease Obligations (Textual)
Purchase of capital equipment	$ 2,232,000
Lease obligations maturity, description	These lease obligations mature ranging from December 2021 through February 2024.
Capital lease obligations	$ 1,894,000	$ 1,897,000
Underlying assets	2,814,000
Accumulated depreciation	204,810
Capital lease payments	45,600
Minimum [Member]
Capital Lease Obligations (Textual)
Purchase of capital equipment	$ 437
Repayment financial term	48 months
Effective interest rates	4.52%
Maximum [Member]
Capital Lease Obligations (Textual)
Purchase of capital equipment	$ 8,582
Repayment financial term	60 months
Effective interest rates	9.86%

Notes Payable (Details)

Notes Payable (Details)	3 Months Ended
	Mar. 31, 2019USD ($)
Notes Payable (Textual)
Description of note convertible	(i) 500,000 shares of its common stock, no par value per share at a purchase price of $3.00 per share (the "Shares"), (ii) a warrant to purchase up to 942,857 shares of common stock at $3.50 per share (the "Warrant"), and (iii) a senior secured note in the principal amount of $3,000,000 (the "Note").
Original issue discount	$ 322,924
Amortization of debt discount	80,731
Unamortized discount	$ 242,193

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Dec. 27, 2018	Nov. 15, 2018	Mar. 28, 2019	Mar. 25, 2019	Feb. 28, 2019	Jan. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Class of Stock [Line Items]
Common stock, shares authorized							20,000,000		20,000,000
Common stock, par value
Total proceeds stock option amount							$ 5,000	$ 29,259
Offering costs							255,202
Issue of restricted common shares								20,000
Restricted common shares fair value								$ 57,199
Description of subscription agreement	The Company entered into a Subscription Agreement (the "Subscription Agreement") with FOD Capital, LLC, a Florida limited liability company (the "Investor"), pursuant to which the Company issued to the Investor (i) 500,000 shares of its common stock, no par value per share at a purchase price of $3.00 per share (the "Shares"), (ii) a warrant to purchase up to 942,857 shares of common stock at $3.50 per share (the "Warrant"), and (iii) a senior secured note in the principal amount of $3,000,000 (the "Note"). The Shares, Warrant and Note were purchased together by the Investor for an aggregate amount of $4.5 million but were issued separately (collectively, the "Transaction").
Purchase price of shares	$ 1,500,000
Warrant term	3 years
Note matures	Dec. 27, 2019
Fair value of warrants	$ 111,374
Original issue discount							$ 322,924
Share Exchange Agreement [Member]
Class of Stock [Line Items]
Conversion of common stock shares		2,000,000
Subscription Agreement [Member]
Class of Stock [Line Items]
Issue of public offering common stock shares				800,000	288,333
Issue of public offering common stock value				$ 3,400,000
Exercised at a price per share				$ 4.25	$ 3
Offering costs				$ 255,000
Reserved shares of common stock for issuance							942,857
Net proceeds				$ 3,145,000	$ 865,000
Chief Executive Officer [Member] | Share Exchange Agreement [Member]
Class of Stock [Line Items]
Issuance of shares		2,000,000
Common Stock [Member]
Class of Stock [Line Items]
Common stock, shares authorized									20,000,000
Reserved common stock pursuant to the equity incentive plans							2,531,939
Stock options and warrants outstanding							1,885,061		2,236,893
Employee options exercised			1,613			14,200	1,613	14,200
Exercised at a price per share			$ 3.10			$ 2.0605
Total proceeds stock option amount			$ 5,000			$ 29,259	$ 5,000	$ 29,259
Offering costs							$ 255,202
Employee warrants							200,000	15,000
Warrant exercise price								$ 0.50
Issuance of shares							164,578	13,014
Additional issuance of warrants							942,857
Conversion of common stock shares							(2,000,000)
Employee options							200,000
Market price, per share								$ 3.7776
Preferred Stock [Member]
Class of Stock [Line Items]
Conversion provisions upon an initial public offering									$ 15,000,000
Common Stock One [Member]
Class of Stock [Line Items]
Employee warrants							30,000
Warrant exercise price							$ 0.50
Common Stock Two [Member]
Class of Stock [Line Items]
Employee warrants							170,000
Warrant exercise price							$ 0.9375
Market price, per share							$ 5.212
Additional Paid-in Capital [Member]
Class of Stock [Line Items]
Total proceeds stock option amount
Offering costs
Issuance of common stock value							$ 111,374
Series C Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized							2,000,000		2,000,000
Preferred stock, shares designated							2,000,000
Preferred stock, par value
Preferred stock, shares issued		2,000,000					2,000,000
Preferred stock, shares outstanding							2,000,000
Employee options exercised
Total proceeds stock option amount
Offering costs
Conversion of common stock shares									2,000,000
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized							1,500,000		1,500,000
Preferred stock, par value
Preferred stock, shares issued
Preferred stock, shares outstanding
Employee options exercised
Total proceeds stock option amount
Offering costs
Series A Preferred Stock [Member] | Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized							5,000,000
Preferred stock, shares designated							1,500,000
Preferred stock, par value
Preferred stock, shares issued
Preferred stock, shares outstanding
Related Party [Member] | Preferred Stock [Member]
Class of Stock [Line Items]
Sale of preferred stock, shares									10,000
Minimum [Member] | Common Stock [Member]
Class of Stock [Line Items]
Exercised at a price per share									$ 2.0605

Stock-Based Payments (Details)

Stock-Based Payments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 96,450	$ 113,596
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	21,008	31,015
Sales and marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	13,744	64,851
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 61,698	$ 17,730

Stock-Based Payments (Details T

Stock-Based Payments (Details Textual) - USD ($)	Sep. 01, 2018	Mar. 28, 2019	Jan. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Stock-Based Payments (Textual)
Stock-based compensation				$ 96,450	$ 113,596
Total compensation cost related to non-vested awards				132,000
Total proceeds				$ 5,000	$ 29,259
Common Stock [Member]
Stock-Based Payments (Textual)
Employee options were exercised		1,613	14,200	1,613	14,200
Total proceeds		$ 5,000	$ 29,259	$ 5,000	$ 29,259
Exercise price per share					$ 0.50
Total shares issued				164,578	13,014
2018 Omnibus Stock Incentive Plan [Member]
Stock-Based Payments (Textual)
Stock-based compensation				$ 69,304
Options issued	617,000
Options forfeited	109,000
Options outstanding	508,000
Compensation cost not yet recognized				$ 701,000
2012 Employee Stock Benefit Plan [Member]
Stock-Based Payments (Textual)
Warrants issued and outstanding, shares of company common stock				693,004	958,004
Warrant issued				11,996
Total shares issued				1,000,000
2012 Employee Stock Benefit Plan [Member] | Minimum [Member]
Stock-Based Payments (Textual)
Warrants expire term				10 years
2012 Employee Stock Benefit Plan [Member] | Maximum [Member]
Stock-Based Payments (Textual)
Warrants expire term				15 years
2015 Stock Incentive Plan [Member]
Stock-Based Payments (Textual)
Stock-based compensation				$ 27,146	$ 51,171
Total proceeds			$ 29,258
Price per share			$ 2.0605
Options issued				142,882
Two Thousand Eighteen Omnibus Stock Incentive Plan [Member]
Stock-Based Payments (Textual)
Common stock for delivery under the plan				1,000,000
Two Thousand Fifteen Stock Incentive Plan [Member]
Stock-Based Payments (Textual)
Common stock for delivery under the plan				1,000,000

Customer Deposits (Details)

Customer Deposits (Details) - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Customer Deposits (Textual)
Deposits received	$ 876,824	$ 454,624
Customer deposits from related parties	1,700	1,700
Refundable deposits amount	387,824	$ 370,624
Signature Series Vehicles [Member]
Customer Deposits (Textual)
Customer deposits per order	42,000
Minimum [Member] | Retail Production Vehicles [Member]
Customer Deposits (Textual)
Customer deposits per order	100
Maximum [Member] | Retail Production Vehicles [Member]
Customer Deposits (Textual)
Customer deposits per order	$ 10,100

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member]	Apr. 05, 2019shares
2015 Stock Incentive Plan [Member]
Subsequent Events (Textual)
Options granted	141,600
Stock options available for issuance	1,282
2018 Omnibus Stock Incentive Plan [Member]
Subsequent Events (Textual)
Options granted	498,600
Stock options available for issuance	1,900