Arcimoto (FUVV) 10-Q 16 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 16, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	Arcimoto Inc
Entity Central Index Key	0001558583
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Current reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity shell Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		31,855,438
Entity File Number	001-38213
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	OR

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 16,970,902	$ 5,832,489
Accounts receivable, net	33,918	244,450
Inventory	6,230,078	3,734,488
Prepaid inventory	603,381	1,194,695
Other current assets	584,833	665,079
Total current assets	24,423,112	11,671,201
Property and equipment, net	5,794,166	4,732,544
Security deposits	95,708	41,988
Total assets	30,312,986	16,445,733
Current liabilities:
Accounts payable	405,828	339,835
Accrued liabilities	809,817	816,013
Customer deposits	561,020	793,524
Current portion of capital lease obligations	473,828	433,967
Convertible notes payable, related parties		1,150,907
Convertible notes payable, net of discount		837,557
Notes payable, net of discount	234,449	3,032,438
Current portion of warranty reserve	36,831	90,000
Current portion of deferred revenue	110,131	31,174
Current portion of note payable to bank	601,537
Total current liabilities	3,233,441	7,525,415
Capital lease obligations, net of current portion	1,446,238	1,179,700
Warranty reserve, net of current portion	83,000	45,000
Deferred revenue, net of current portion	56,250	85,500
Note payable to bank, net of current portion	467,149
Total long-term liabilities	2,052,637	1,310,200
Total liabilities	5,286,078	8,835,615
Commitments and contingencies (Note 11)
Stockholders' equity:
Preferred Stock, no par value, 1,500,000 authorized, none issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
Common Stock, no par value, 60,000,000 shares authorized; 31,855,438 and 24,436,389 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	71,952,512	43,573,529
Additional paid-in capital	3,323,209	2,344,751
Accumulated deficit	(50,248,813)	(38,308,162)
Total stockholders' equity	25,026,908	7,610,118
Total liabilities and stockholders' equity	30,312,986	16,445,733
Series A-1 preferred stock
Stockholders' equity:
Preferred Stock, no par value, 1,500,000 authorized, none issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
Total stockholders' equity
Class C Preferred Stock
Stockholders' equity:
Preferred Stock, no par value, 1,500,000 authorized, none issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
Total stockholders' equity

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Preferred stock, par value
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	31,855,438	24,436,389
Common stock, shares outstanding	31,855,438	24,436,389
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
Preferred stock, shares outstanding

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Product sales	$ 620,438	$ 19,900	$ 1,473,428	$ 19,900
Grant revenue	10,000		10,000
Other revenue	53,457	13,411	85,800	24,570
Total revenues	683,895	33,311	1,569,228	44,470
Cost of goods sold	2,046,466	66,280	4,944,801	71,000
Gross loss	(1,362,571)	(32,969)	(3,375,573)	(26,530)
Operating expenses:
Research and development	1,314,053	2,343,015	2,047,341	5,439,610
Sales and marketing	361,508	309,111	1,003,681	831,410
General and administrative	1,575,890	1,075,726	4,830,236	4,068,133
Total operating expenses	3,251,451	3,727,852	7,881,258	10,339,153
Loss from operations	(4,614,022)	(3,760,821)	(11,256,831)	(10,365,683)
Other expense (income):
Interest expense	29,120	262,291	691,729	649,812
Other income		(837)	(7,500)	(2,255)
Foreign exchange gain	(409)		(409)
Net loss	$ (4,642,733)	$ (4,022,275)	$ (11,940,651)	$ (11,013,240)
Weighted average common shares - basic and diluted	31,677,467	18,381,328	27,111,633	17,079,633
Net loss per common share - basic and diluted	$ (0.15)	$ (0.22)	$ (0.44)	$ (0.64)

Condensed Statements of Stockho

Condensed Statements of Stockholders' Equity (Unaudited) - USD ($)	Series A-1 Preferred Stock	Class C Preferred Stock	Common Stock	Additional Paid-In Capital	Stock Subscription Receivable	Accumulated Deficit	Total
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 accounts payable			$ 36,782				36,782
Issuance of common stock for accounts payable, shares			10,947
Issuance of common stock for cash			$ 4,264,999				4,264,999
Issuance of common stock for cash, shares			1,088,333
Exchange of Class C Preferred stock for common stock
Exchange of Class C Preferred stock for common stock, shares		(2,000,000)	2,000,000
Exercise of stock options			$ 10,502				10,502
Exercise of stock options, shares			3,388
Offering costs			$ (255,202)				(255,202)
Stock options exercised - cashless
Stock options exercised - cashless, shares			53,684
Warrants exercised - cashless
Warrants exercised - cashless, shares			203,252
Stock-based compensation				463,206			463,206
Net loss						(11,013,240)	(11,013,240)
Balance at Sep. 30, 2019			$ 34,159,819	1,394,075		(33,979,713)	1,574,181
Balance, shares at Sep. 30, 2019			18,391,945
Balance at Jun. 30, 2019			$ 34,123,037	1,213,059		(29,957,438)	5,378,658
Balance, shares at Jun. 30, 2019			18,347,324
Issuance of common stock for accounts payable			$ 36,782				36,782
Issuance of common stock for accounts payable, shares			10,947
Warrants exercised - cashless
Warrants exercised - cashless, shares			33,674
Stock-based compensation				181,016			181,016
Net loss						(4,022,275)	(4,022,275)
Balance at Sep. 30, 2019			$ 34,159,819	1,394,075		(33,979,713)	1,574,181
Balance, shares at Sep. 30, 2019			18,391,945
Balance at Dec. 31, 2019			$ 43,573,529	2,344,751		(38,308,162)	7,610,118
Balance, shares at Dec. 31, 2019			24,436,389
Issuance of common stock for accounts payable			$ 181,329				181,329
Issuance of common stock for accounts payable, shares			60,591
Issuance of common stock for cash			$ 26,501,001				26,501,001
Issuance of common stock for cash, shares			5,736,667
Offering costs incurred on placements of common stock			$ (1,649,290)				(1,649,290)
Offering costs incurred on placements of common stock, shares
Issuance of common stock under convertible notes			$ 1,419,177				1,419,177
Issuance of common stock under convertible notes, shares			333,924
Issuance of common stock to satisfy director award			$ 8,929	(8,929)
Issuance of common stock to satisfy director award, shares			5,546
Exercise of warrants			$ 1,761,373	(111,374)			1,649,999
Exercise of warrants, shares			471,428
Exercise of stock options			$ 156,464	(133,758)			22,706
Exercise of stock options, shares			5,225
Stock options exercised - cashless
Stock options exercised - cashless, shares			116,229
Warrants exercised - cashless
Warrants exercised - cashless, shares			689,439
Stock-based compensation				1,232,519			1,232,519
Net loss						(11,940,651)	(11,940,651)
Balance at Sep. 30, 2020			$ 71,952,512	3,323,209		(50,248,813)	25,026,908
Balance, shares at Sep. 30, 2020			31,855,438
Balance at Jun. 30, 2020			$ 56,871,882	6,783,421	(3,715,000)	(45,606,080)	14,334,223
Balance, shares at Jun. 30, 2020			28,442,982
Issuance of common stock for accounts payable			$ 100,000				100,000
Issuance of common stock for accounts payable, shares			17,135
Issuance of common stock for cash			$ 13,716,000	(3,715,000)	(3,715,000)		13,716,000
Issuance of common stock for cash, shares			2,113,000
Offering costs incurred on placements of common stock			$ (653,207)				(653,207)
Offering costs incurred on placements of common stock, shares
Issuance of common stock to satisfy director award			$ 8,929	(8,929)
Issuance of common stock to satisfy director award, shares			5,546
Exercise of warrants			$ 1,761,373	(111,375)			1,649,998
Exercise of warrants, shares			471,428
Exercise of stock options			$ 156,464	(133,758)			22,706
Exercise of stock options, shares			5,225
Stock options exercised - cashless
Stock options exercised - cashless, shares			116,229
Warrants exercised - cashless
Warrants exercised - cashless, shares			689,439
Stock-based compensation				499,921			499,921
Net loss						(4,642,733)	(4,642,733)
Balance at Sep. 30, 2020			$ 71,952,512	$ 3,323,209		$ (50,248,813)	$ 25,026,908
Balance, shares at Sep. 30, 2020			31,855,438

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
OPERATING ACTIVITIES
Net loss	$ (11,940,651)	$ (11,013,240)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization	676,122	515,659
Amortization of debt discount	310,508	242,933
Stock-based compensation	1,232,519	463,206
Gain on foreign exchange transaction	(409)
Loss on scrapped Beta FUV finished goods inventory		147,305
Loss on disposal of property and equipment		710,290
Changes in operating assets and liabilities
Accounts receivable	210,532	(4,628)
Inventory	(2,495,181)	(2,616,585)
Prepaid inventory	591,314
Other current assets	314,694	(203,502)
Accounts payable	247,322	600,246
Accrued liabilities	102,088	810,038
Customer deposits	(232,504)	529,700
Warranty reserve	(15,169)	(4,300)
Deferred revenue	49,707	105,000
Net cash used in operating activities	(10,949,108)	(9,717,878)
INVESTING ACTIVITIES
Purchase of property and equipment	(1,097,307)	(100,041)
Security deposits	(53,720)
Net cash used in investing activities	(1,151,027)	(100,041)
FINANCING ACTIVITIES
Proceeds from the sale of common stock	26,501,001	4,264,999
Payment of offering costs	(1,649,290)	(255,202)
Proceeds from note payable to bank	1,068,686
Proceeds from the exercise of stock options	22,706	10,502
Payment on capital lease obligations	(334,038)	(291,993)
Repayment of convertible notes payable to related parties	(188,079)
Repayment of notes payable	(3,332,437)
Repayment of convertible notes payable	(500,000)
Proceeds from the exercise of warrants	1,649,999
Proceeds from related party convertible notes payable		1,125,000
Proceeds from convertible notes payable		810,000
Net cash provided by financing activities	23,238,548	5,663,306
Net cash increase (decrease) for period	11,138,413	(4,154,613)
Cash at beginning of period	5,832,489	4,903,019
Cash at end of period	16,970,902	748,406
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for interest	644,653	117,445
Cash paid during the period for income taxes	150	150
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Notes payable and accrued interest converted to common stock	1,419,177
Portion of equipment acquired through capital leases	640,437	88,850
Stock issued for payment of accounts payable	181,329	36,782
Insurance finance agreement	234,448	122,571
Accrued interest converted to notes payable		$ 48,972

Nature of Operations

Nature of Operations	9 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF OPERATIONS	NOTE 1: NATURE OF OPERATIONS Arcimoto, Inc. (the "Company") was incorporated in the State of Oregon on November 21, 2007. The Company's mission is to catalyze the global shift to a sustainable transportation system. Over the past 13 years, the Company has developed a new vehicle platform designed around the needs of everyday drivers. Having approximately one-third the weight and one-third of the footprint of the average car, the Arcimoto platform's purpose is to bring the joy of ultra-efficient, pure electric driving to the masses. To date, the Company has introduced five vehicle products built on this platform that target specific niches in the vehicle market: our flagship product, the Fun Utility Vehicle® ("FUV®"), for everyday consumer trips; the Deliverator® for last-mile delivery and general fleet utility; the Rapid Responder™ for emergency services and security; the Cameo™ for film, sports and influencers; and the Arcimoto Roadster, an unparalleled pure-electric on-road thrill machine. Risks and Uncertainties We started retail production in the third quarter of 2019 at one FUV per build day and ramped to two per build day in the first quarter of 2020 before suspending production in response to the COVID-19 pandemic. We restarted production and resumed deliveries to customers in the third quarter of 2020. As result of the suspension revenues from the first three quarters of 2020 were negatively impacted. Revenues from the fourth quarter of 2020 and subsequent quarters may be negatively impacted based on the length and severity of the pandemic. Further, Arcimoto does not have a history of higher-scale production and may encounter delays or inefficiencies in its sales and manufacturing processes, which may prevent or delay achieving higher-scale production within anticipated timelines. In order to achieve higher-scale production, the Company may need to raise additional capital and there can be no assurance such capital will be available upon reasonable terms, if at all. Additionally, the Company's business and operations are sensitive to governmental policies on importation and exportation, as well as the availability of vehicle components from suppliers, which themselves may be impacted by pandemics and such, lest we mention the ever-shifting general landscape of governmental policy related to cars and motorcycles. The Company's industry is characterized by rapid changes in technology and customer demands. The Company's future success will depend on its ability to adapt to technological advances, its adroit anticipation of customer demands, its development of well-considered new products and services, and the enhancement of its current products and services on a timely and cost-effective basis. Finally, the Company may not have the capital resources necessary to further the development of existing and/or new products.

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2020
Going Concern [Abstract]
GOING CONCERN	NOTE 2: GOING CONCERN The accompanying financial statements have been prepared on the 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 may require additional funding to continue to operate in the normal course of business. The substantial doubt about the Company's ability to continue as a going concern has been alleviated based on management's belief that current cash reserves will sustain operations in excess of 12 months. Although the Company's objective is to increase its revenues from the sales of its products 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 may need to raise additional capital in order to fund its operations, which if needed, it intends to obtain through debt and/or equity offerings. Funds on hand and any follow-on capital, will be used to invest in our business to expand sales and marketing efforts, including Company-owned and franchise-rental operations and the systems to support them, enhance our current product lines by continuing research and development ("R&D") to enhance and reduce the cost of the FUV and to bring future variants to retail production, continue to build out and optimize our production facility, debt repayment, 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	9 Months Ended
	Sep. 30, 2020
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 September 30, 2020, and the results of its operations for the three and nine months ended September 30, 2020 and 2019 and its cash flows for the nine months ended September 30, 2020 and 2019. Results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. 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, 2019 included in the Company's Annual Report on Form 10-K filed with the SEC on April 14, 2020. Inventory Inventory is stated at the lower of cost (using the first-in, first-out method ("FIFO")) or market value. Inventories consist of purchased electric motors, electrical storage and transmission equipment, and component parts. September 30, December 31, Raw materials $ 6,128,033 $ 3,650,466 Work in progress — 25,340 Finished goods 102,045 58,682 Total $ 6,230,078 $ 3,734,488 The Company is required to remit partial prepayments for some purchases of its inventories acquired from overseas vendors. Customer Deposits Non-refundable customer deposits are comingled with operating funds. Refundable customer deposits are generally held in a separate deposit account. Revenue is not recognized on customer deposits until the deposit is applied to a non-refundable vehicle order, the vehicle manufacturing process is completed, the vehicle is picked up by or delivered to the customer and the appropriate revenue recognition criteria have been met per our policy below. 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 September 30, 2020 and 2019, the Company excluded the outstanding Employee Equity Plans ("EEP") and other securities summarized below using the Treasury Stock Method, 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. Three Months Ended Nine Months Ended 2020 2019 2020 2019 Options and other instruments under the 2012, 2015, and 2018 Plans to purchase common stock 1,959,681 669,308 1,105,733 739,545 Underwriters and investors warrants issued outside of an EEP 268,484 — 19,019 4,499 Total 2,228,165 669,308 1,124,752 744,044 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 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 12 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 12 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. In November 2019, the FASB delayed the effective date for Topic 842 to fiscal years beginning after December 15, 2020 for private companies and emerging growth companies, and interim periods within those years, with early adoption permitted. In June 2020, the FASB issued ASU No 2020-05 that further delayed the effective date of Topic 842 to fiscal years beginning after December 15, 2021. We will adopt this new standard on January 1, 2022. 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, as opposed to the earliest period presented under the modified retrospective transition approach 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 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, 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 adopted the new standard on January 1, 2020. The adoption did not have a material impact on the Company's 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. The Company adopted the new standard on January 1, 2020. The adoption did not have a material impact on the Company's financial statements.

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2020
Risks and Uncertainties [Abstract]
CONCENTRATIONS	NOTE 4: CONCENTRATIONS Payables As of September 30, 2020 and December 31, 2019, the Company had two and one, respectively, significant vendors in each period that accounted for more than 10% of the Company's payables balances. The loss of these vendors would not have a significant impact on the Company's operations. Purchases/Inventory As of September 30, 2020 and December 31, 2019, the Company had two significant vendors that accounted for more than 10% of the Company's inventory balances. As of September 30, 2020 these vendors accounted for 37% and 16% of inventory balances. As of December 31, 2019, these vendors accounted for 17% and 23% of inventory balances. The loss of these vendors would not have a significant impact on the Company's operations.

Property and Equipment

Property and Equipment	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5: PROPERTY AND EQUIPMENT As of September 30, 2020 and December 31, 2019, our property and equipment consisted of the following: September 30, December 31, Computer equipment and software $ 94,384 $ 77,583 Furniture and fixtures 52,007 46,839 Machinery and equipment 5,161,144 4,699,383 FUV rental fleet 103,316 — Leasehold improvements 774,046 774,046 Fixed assets in process 1,415,697 264,999 Total property and equipment 7,600,594 5,862,850 Less: Accumulated depreciation (1,806,428 ) (1,130,306 ) Total $ 5,794,166 $ 4,732,544 Fixed assets in process is comprised primarily of 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 $238,000 and $676,000 during the three and nine months ended September 30, 2020, respectively, and was approximately $173,000 and $516,000 during the three and nine months ended September 30, 2019, respectively.

Capital Lease Obligations

Capital Lease Obligations	9 Months Ended
	Sep. 30, 2020
Leases [Abstract]
CAPITAL LEASE OBLIGATIONS	NOTE 6: CAPITAL LEASE OBLIGATIONS As of September 30, 2020, the Company has financed a total of approximately $3,190,000 of its capital equipment purchases with monthly payments ranging from $362 to $8,582, repayment terms ranging from 48 to 72 months, and effective interest rates ranging from 4.52% to 9.90%. Total monthly capital lease payments as of September 30, 2020 are $47,267. These lease obligations mature ranging from January 2022 through July 2027 and are secured by approximately $2,909,000 in underlying assets which have approximately $687,000 in accumulated depreciation as of September 30, 2020. The balance of capital lease obligations was approximately $1,920,000 and $1,614,000 as of September 30, 2020 and December 31, 2019, respectively.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2020
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"). See Note 8 for additional details. On September 12, 2019, the Company issued an additional $500,000 note ("additional Note") to the Investor, net of a $15,000 discount. The additional Note principal plus accrued interest is convertible into the Company's common stock at a conversion price per share of $4.25. Accrued interest expense excluding the discount amortization for the nine-month period ended September 30, 2020 was $164,572. The discount amortized for the nine-month period ended September 30, 2020 was the remaining discount on the notes of $310,508. The discount amortized for the nine-month period ended September 30, 2019 was $242,933. On June 15, 2020, both notes were repaid in cash, principal in the amount of $3,500,000 and accrued interest in the amount of $479,809 for a total payment of $3,979,809. During the nine months ended September 30, 2020, the Company had 10%, one-year convertible promissory notes outstanding totaling $1,310,893, of which $962,829 was due to related parties. The notes were due in July 2020. The notes were payable in cash or convertible into common stock at $4.25 per share at the option of the holder. On June 25, 2020, certain Notes were converted in accordance with the Subscription Agreement. As a result, principal amounts of $1,310,893, of which $962,829 was to related parties and unpaid accrued interest of $108,284, of which $71,725 was to related parties, were converted into 333,924 shares of common stock at a conversion price of $4.25 per share. The Company also paid an aggregate of $688,079 of cash to settle principal, of which $188,079 was to related parties, and $80,953 of accrued interest, of which $41,691 was to related parties, to settle the remaining convertible notes. Interest expense was $53,284 for the nine months ended September 30, 2020. On May 5, 2020, the Company received a Paycheck Protection Program ("PPP") loan in the amount of $1,068,686, referred to on the balance sheet as Note payable to bank. The loan has an interest rate of 1% and monthly payments of $60,154 for 18 months beginning December 5, 2020. This loan is eligible for the limited loan forgiveness provisions of Section 1102 of the CARES Act, and the SBA Interim Final Rule dated April 2, 2020.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2020
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 8: STOCKHOLDERS' EQUITY Common Stock The Company has reserved a total of 5,095,289 shares of its common stock pursuant to the equity incentive plans (see Note 9). The Company has 4,037,929 and 3,293,135 stock units, options and warrants outstanding under these plans as of September 30, 2020 and December 31, 2019, respectively. The Company has 693,667 and 2,109,839 shares of its common stock reserved for warrants issued outside of the equity incentive plans as of September 30, 2020 and December 31, 2019, respectively. Common Stock Issued for Accounts Payable The Company issued 60,591 common shares for services or materials with a fair value of $181,329 during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, the Company issued 10,947 restricted common shares for services with a fair value of $36,782. The shares were valued based on the stock price at the time of the grant when the performance commitment was complete. The shares issued during the during the nine months ended September 30, 2020 and 2019 were to settle existing accounts payable. Exercise of Stock Options and Warrants A total of 5,225 employee options, with exercise prices ranging from $4.33 to $4.52 per share were exercised for total proceeds to the Company of $22,706 during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, a total of 3,388 employee options were exercised at a price per share of $3.10 for total proceeds to the Company of $10,502. A total of 171,470 employee options with exercise prices ranging from $2.0605 to $4.52 per share were exercised in cashless transactions at market prices ranging from $6.32 to $7.64 per share and a total of 34,666 options issued to a consultant with exercise prices ranging from 2.54 and 3.57 were also exercised in a cashless transaction at a market price of $7.638, which was based on the Company's daily closing prices surrounding the transaction dates. The transactions resulted in the issuance of 93,766 shares of common stock issued for qualified options to employees and 22,463 shares issued of common stock for non-qualified options issued to a consultant during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, a total of 119,637 employee options, with exercise prices ranging from $2.0605 to $3.10 per share, were exercised in cashless transactions at market prices ranging from $2.864 to $5.212 per share, which was based on the average of the Company's daily closing prices surrounding the transaction dates. The transactions resulted in the issuance of a total of 53,684 shares of the Company's common stock. A total of 5,546 director deferred stock units were converted to common shares during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, no director deferred stock units were converted to common shares. A total of 50,004 employee warrants with an exercise price of $0.50 per share were exercised in a cashless transaction at a market price of $7.484 per share, which was based on the average of the Company's daily closing prices surrounding the transaction dates. The transaction resulted in the issuance of a total of 46,663 shares of the Company's common stock during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, a total of 245,688 employee warrants, 75,688 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 market prices ranging from $3.162 to $5.212 per share, which was based on the average of the Company's daily closing prices surrounding the transaction dates. The transactions resulted in the issuance of a total of 203,252 shares of the Company's common stock. A total of 944,444 warrants issued to investors with an exercise price of $2.83 per share were exercised in a cashless transaction at a market price of $8.86 per share, which was based on the bid price of the Company's common stock on the Nasdaq Capital Market as reported by Bloomberg L.P. as of the time of the holder's execution of the applicable notice of exercise. The transaction resulted in the issuance of a total of 642,776 shares of the Company's common stock during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, no warrants issued to investors were exercised. A total of 471,428 warrants issued to an investor with an exercise price of $3.50 per share were exercised for total proceeds to the Company of $1,649,999 during the nine months ended September 30, 2020. During the nine months ended September 30, 2019, no warrants issued to investors were exercised. Offerings of Common Stock On June 11, 2020, the Company entered into a Securities Purchase Agreement with certain institutional investors pursuant to which the Company agreed to issue in a registered direct offering an aggregate of 2,666,667 shares of its common stock at a purchase price per share of $3.00 for aggregate gross proceeds of approximately $8,000,000. The Company incurred placement agent fees of $480,000 related to the offering. On June 30, 2020, the Company entered into a Securities Purchase Agreement with certain institutional investors pursuant to which the Company agreed to issue in a registered direct offering an aggregate of 1,700,000 shares of its common stock, no par value per share, at a purchase price per share of $5.00 for aggregate gross proceeds of approximately $8,500,000, of which $4,785,000 was received on June 30, 2020. The balance of $3,715,000 from the offering was received by July 2, 2020. The Company incurred placement agent fees of $510,000 related to the offering. On July 9, 2020, the Company entered into a Securities Purchase Agreement with certain institutional investors pursuant to which the Company agreed to issue in a registered direct offering an aggregate of 1,370,000 shares of the Company's common stock, no par value per share, at a purchase price per share of $7.30 for aggregate gross proceeds of approximately $10.0 million. The Securities Purchase Agreement includes customary representations, warranties and covenants by the Company. The Company incurred placement agent fees of $600,000 related to the offering. Aggregate other cost of the three offerings for legal and accounting was approximately $59,000.

Stock-Based Payments

Stock-Based Payments	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
STOCK-BASED PAYMENTS	NOTE 9: STOCK-BASED PAYMENTS The Company grants common stock, common stock units, and common stock purchase 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. The Company recognizes stock option forfeitures as they occur as there is insufficient historical data to accurately determine future forfeiture rates. 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 valuing stock-based awards. The expected life of employee stock options was estimated using the "simplified method," as the Company has insufficient 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 comparables 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 and services is included in the statements of operations as follows: Three Months Ended Nine Months Ended 2020 2019 2020 2019 Research and development $ 64,810 $ 52,359 $ 164,025 $ 125,925 Sales and marketing 31,121 23,849 86,027 61,455 General and administrative 315,274 104,808 762,520 275,826 Cost of goods sold 88,716 — 219,947 — Total $ 499,921 $ 181,016 $ 1,232,519 $ 463,206 Consulting Agreement with Common Stock Compensation During the nine months ended September 30, 2020, the Company issued 60,591 common shares for accounts payable with a fair value of $181,329. The shares were valued based on the stock price at the time of the grant when the performance commitment was complete. 32,749 of these shares were for the August 3, annual renewal of an investor relations consulting contract. The terms of the contract call for the issuance of $100,000 worth of common shares issued at each annual renewal based on the market price at the time of the renewal. In addition to the payment in common shares, this consultant receives cash payments of $7,500 per month and payments for additional services as needed. During the three-month periods ending September 30, 2020 and 2019, we paid this investor relations consultant $94,500 and $0 respectively. During the nine-month periods ending September 30, 2020 and 2019, we paid the same investor relations consultant $334,500 and $48,251 respectively, which included significant additional services. 2018 Omnibus Stock Incentive Plan The 2018 Plan authorizing 1,000,000 shares 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. At the 2019 Annual Meeting, the shareholders approved an additional 1,000,000 shares of common stock to be issued under the 2018 Plan. On April 20, 2020, the board of directors approved an increase from 2,000,000 to 4,000,000 shares; at the annual shareholder meeting on June 20, 2020, the increase was approved by a majority of the shareholders. 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 NQSOs and restricted stock, provided that only employees are entitled to receive incentive stock options in accordance with IRS guidelines. As of September 30, 2020, the Company had a remaining reserve of 1,051,915 shares of common stock under the 2018 Plan. Awards that are forfeited generally become available for grant under the 2018 Plan. Employee stock-based compensation expense under the 2018 Plan included in operating expenses for the three and nine months ended September 30, 2020 was $474,174 and $1,143,127, respectively. Employee stock-based compensation expense under the 2018 Plan included in operating expenses for the three and nine months ended September 30, 2019 was $132,335 and $338,278, respectively. Total compensation cost related to non-vested awards issued under the 2018 Plan not yet recognized as of September 30, 2020 was approximately $4,160,423 and will be recognized on a straight-line basis through September 2023 based on the respective vesting periods. The amount of future stock option compensation expense could be affected by any future option grants or forfeitures. On January 6, 2020, the board of directors approved a director deferred compensation plan under the 2018 Plan. The deferred compensation plan calls for stock units to be held on account for each director and issued 90 days after separation from service as a director. If cash reserves are estimated to be less than the amount needed for five months of operations the Directors are required to take their compensation in Deferred Stock Units under the 2018 Plan, otherwise, Directors have the option of taking compensation in any combination of cash or Deferred Stock Units. For the nine months ended September 30, 2020, a total of 143,644 stock units with a value of $507,529, based on the closing price on the last day of the quarter, were reserved and expensed. 28,673 of the stock units were valued with a price per share of $1.61 based on the closing stock price on the last trading day of the fourth quarter of 2019, and were recorded as a $46,163 expense on January 6, 2020 because the plan was adopted by the Board of Directors retroactively to the fourth quarter 2019. 46,584 of the stock units were valued with a price per share of $1.15 based on the closing stock price on the last trading day of the first quarter of 2020, and were recorded as a $53,572 expense on March 31, 2020. 33,486 of the stock units were valued with a price per share of $5.32 based on the closing stock price on the last trading day of the second quarter of 2020, and were recorded as a $178,146 expense on June 30, 2020. 34,901 of the stock units were valued with a price per share of $6.58 based on the closing stock price on the last trading day of the third quarter of 2020, and were recorded as a $229,649 expense on September 30, 2020. On April 27 and June 18, 2020, non-qualified options to purchase 29,666 and 5,000 shares of common stock were issued to a consultant under the 2018 Plan with grant date fair values of $44,956 and $13,430 respectively. The exercise price of the options were $2.54 and $3.57, respectively. These options vested on issuance and were exercised on August 20, 2020, in a cashless transaction at a market price of $7.638 per share resulting in the issuance of 22,463 shares. On September 11, 2020, non-qualified options to purchase 41,000 shares of common stock were issued to consultants under the 2018 Plan with grant date fair value of $139,544. The exercise price of the options are $5.41. 20,000 of these options vest over two years and 21,000 of these options vest over one year. During the nine months ended September 30, 2020, qualified options to purchase 912,000 shares of common stock were granted to employees under the 2018 Plan with a grant date fair value of $3,112,715. The options were valued using the Black-Scholes option pricing model with a six-year expected term, risk free interest rates ranging from 0.36% to 0.45%, and an annualized standard deviation of stock price volatility of 69.4% to 74.9%, with a weighted average exercise price of $5.30. These options vest over three years. During the nine months ended September 30, 2019, the Company granted 498,600 options under the 2018 Plan. These options had an exercise price of $4.52 and vest over three years. The total grant date fair value of these options was $963,929. 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. One million shares of common stock were authorized for issuance under the 2015 Plan. Awards that are forfeited generally become available for grant under the 2015 Plan. As of September 30, 2020, 667,303 shares of common stock were reserved for issuance pursuant to stock options that are outstanding, and 5,444 shares remain available for issuance pursuant to future awards that might be made under the 2015 Plan. During the nine months ended September 30, 2020, qualified options to purchase 13,000 shares of common stock were granted to employees under the 2015 plan with a grant date fair value of $17,358. During the nine months ended September 30, 2019, 141,600 options were granted under the 2015 Plan with a grant date fair value of $273,751. Employee stock-based compensation expense included in operating expenses for the three and nine months ended September 30, 2020 related to the 2015 Plan was $25,747 and $89,392, respectively. Employee stock-based compensation expense included in operating expenses for the three and nine months ended September 30, 2019 related to the 2015 Plan was $48,681 and $124,928, respectively. Total compensation cost related to non-vested awards not yet recognized as of September 30, 2020 was $138,178 and will be recognized on a straight-line basis through May 2023 based on the respective vesting periods. The amount of future stock option compensation expense could be affected by any future option grants or forfeitures. 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 originally reserved 1,000,000 shares of common stock for issuance under the 2012 Plan. Awards that are forfeited generally become available for grant under the 2012 Plan. As of September 30, 2020, 608,312 shares of common stock were reserved for issuance pursuant to warrants that are issued and outstanding under the 2012 Plan and 1 share remains available for issuance pursuant to future awards that might be made under the 2012 Plan. Warrants expire 10 to 15 years from the grant date and were vested when issued. The warrants were fully expensed prior to 2019.

Customer Deposits

Customer Deposits	9 Months Ended
	Sep. 30, 2020
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 September 30, 2020 and December 31, 2019, the Company's balance of deposits received was approximately $561,000 and $794,000, respectively. As of September 30, 2020, and December 31, 2019, $393,524 and $374,524, 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. There were $100 and $11,200 customer deposits from related parties as of September 30, 2020 and December 31, 2019, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11: COMMITMENTS AND CONTINGENCIES Litigation On March 6, 2020, the Company filed a complaint ("the Complaint") against Ayro, Inc. ("Ayro"), accusing Ayro of patent infringement in Federal District Court for the Western District of Texas, Waco Division (Case No. 6:20-cv-00176-ADA) ("the Ayro Litigation"). In the Complaint, Arcimoto alleges that Ayro's 311 two-seater electric vehicles infringe U.S. Patent 8,985,255 (the "255 Patent"). The Complaint asks for monetary damages and enhanced damages due to willful infringement of the 255 Patent by Ayro. On March 27, 2020, Ayro answered the Complaint, denying liability and asserting counterclaims of noninfringement and patent invalidity. The Court held a Markman Hearing on October 15, 2020 to construe the meaning of certain disputed claim terms. At the Markman hearing the Court adopted four of six constructions proposed by Arcimoto. Discovery on the litigation has begun and the Court set a jury trial for July 19, 2021 The Company remains committed to protecting its valuable intellectual property.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12: SUBSEQUENT EVENTS On November 4, 2020 the Company financed $440,754 of its Director and Officers insurance annual renewal premium at 4.64% for nine monthly payments of $49,924.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Unaudited Interim Financial Information	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 September 30, 2020, and the results of its operations for the three and nine months ended September 30, 2020 and 2019 and its cash flows for the nine months ended September 30, 2020 and 2019. Results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020. 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, 2019 included in the Company's Annual Report on Form 10-K filed with the SEC on April 14, 2020.
Inventory	Inventory Inventory is stated at the lower of cost (using the first-in, first-out method ("FIFO")) or market value. Inventories consist of purchased electric motors, electrical storage and transmission equipment, and component parts. September 30, December 31, Raw materials $ 6,128,033 $ 3,650,466 Work in progress — 25,340 Finished goods 102,045 58,682 Total $ 6,230,078 $ 3,734,488 The Company is required to remit partial prepayments for some purchases of its inventories acquired from overseas vendors.
Customer Deposits	Customer Deposits Non-refundable customer deposits are comingled with operating funds. Refundable customer deposits are generally held in a separate deposit account. Revenue is not recognized on customer deposits until the deposit is applied to a non-refundable vehicle order, the vehicle manufacturing process is completed, the vehicle is picked up by or delivered to the customer and the appropriate revenue recognition criteria have been met per our policy below.
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 September 30, 2020 and 2019, the Company excluded the outstanding Employee Equity Plans ("EEP") and other securities summarized below using the Treasury Stock Method, 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. Three Months Ended Nine Months Ended 2020 2019 2020 2019 Options and other instruments under the 2012, 2015, and 2018 Plans to purchase common stock 1,959,681 669,308 1,105,733 739,545 Underwriters and investors warrants issued outside of an EEP 268,484 — 19,019 4,499 Total 2,228,165 669,308 1,124,752 744,044
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 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 12 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 12 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. In November 2019, the FASB delayed the effective date for Topic 842 to fiscal years beginning after December 15, 2020 for private companies and emerging growth companies, and interim periods within those years, with early adoption permitted. In June 2020, the FASB issued ASU No 2020-05 that further delayed the effective date of Topic 842 to fiscal years beginning after December 15, 2021. We will adopt this new standard on January 1, 2022. 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, as opposed to the earliest period presented under the modified retrospective transition approach 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 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, 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 adopted the new standard on January 1, 2020. The adoption did not have a material impact on the Company's 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. The Company adopted the new standard on January 1, 2020. The adoption did not have a material impact on the Company's financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of inventory	September 30, December 31, Raw materials $ 6,128,033 $ 3,650,466 Work in progress — 25,340 Finished goods 102,045 58,682 Total $ 6,230,078 $ 3,734,488
Schedule of earnings per share anti-dilutive	Three Months Ended Nine Months Ended 2020 2019 2020 2019 Options and other instruments under the 2012, 2015, and 2018 Plans to purchase common stock 1,959,681 669,308 1,105,733 739,545 Underwriters and investors warrants issued outside of an EEP 268,484 — 19,019 4,499 Total 2,228,165 669,308 1,124,752 744,044

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	September 30, December 31, Computer equipment and software $ 94,384 $ 77,583 Furniture and fixtures 52,007 46,839 Machinery and equipment 5,161,144 4,699,383 FUV rental fleet 103,316 — Leasehold improvements 774,046 774,046 Fixed assets in process 1,415,697 264,999 Total property and equipment 7,600,594 5,862,850 Less: Accumulated depreciation (1,806,428 ) (1,130,306 ) Total $ 5,794,166 $ 4,732,544

Stock-Based Payments (Tables)

Stock-Based Payments (Tables)	9 Months Ended
	Sep. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of stock-based compensation, including stock-options, warrants and stock issued for compensation and services	Three Months Ended Nine Months Ended 2020 2019 2020 2019 Research and development $ 64,810 $ 52,359 $ 164,025 $ 125,925 Sales and marketing 31,121 23,849 86,027 61,455 General and administrative 315,274 104,808 762,520 275,826 Cost of goods sold 88,716 — 219,947 — Total $ 499,921 $ 181,016 $ 1,232,519 $ 463,206

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Accounting Policies [Abstract]
Raw materials	$ 6,128,033	$ 3,650,466
Work in progress		25,340
Finished goods	102,045	58,682
Total	$ 6,230,078	$ 3,734,488

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 1) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Summary of Significant Accounting Policies [Line Items]
Total	2,228,165	669,308	1,124,752	744,044
Options and other instruments under the 2012, 2015, and 2018 Plans to purchase common stock [Member]
Summary of Significant Accounting Policies [Line Items]
Total	1,959,681	669,308	1,105,733	739,545
Underwriters and investors warrants issued outside of an EEP [Member]
Summary of Significant Accounting Policies [Line Items]
Total	268,484		19,019	4,499

Concentrations (Details)

Concentrations (Details) - Vendor	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Payables [Member]
Concentrations (Textual)
Number of vendor	2	1
Concentration risk percentage	10.00%	10.00%
Purchases/Inventory [Member]
Concentrations (Textual)
Number of vendor	2	2
Concentration risk percentage	10.00%	10.00%
Concentration risk, description	These vendors accounted for 37% and 16% of inventory balances.	These vendors accounted for 17% and 23% of inventory balances.

Property and Equipment (Details

Property and Equipment (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total	$ 7,600,594	$ 5,862,850
Less: accumulated depreciation	(1,806,428)	(1,130,306)
Total	5,794,166	4,732,544
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Total	94,384	77,583
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Total	52,007	46,839
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total	5,161,144	4,699,383
FUV rental fleet [Member]
Property, Plant and Equipment [Line Items]
Total	103,316
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total	774,046	774,046
Fixed assets in process [Member]
Property, Plant and Equipment [Line Items]
Total	$ 1,415,697	$ 264,999

Property and Equipment (Detai_2

Property and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Property and Equipment (Textual)
Depreciation expense	$ 238,000	$ 173,000	$ 676,000	$ 516,000

Capital Lease Obligations (Deta

Capital Lease Obligations (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Capital Lease Obligations (Textual)
Purchase of capital equipment	$ 3,190,000
Lease obligations maturity, description	These lease obligations mature ranging from January 2022 through July 2027.
Capital lease obligations	$ 1,920,000	$ 1,614,000
Underlying assets	2,909,000
Accumulated depreciation	687,000
Capital lease payments	47,267
Minimum [Member]
Capital Lease Obligations (Textual)
Purchase of capital equipment	$ 362
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	72 months
Effective interest rates	9.90%

Notes Payable (Details)

Notes Payable (Details) - USD ($)	May 05, 2020	Jul. 15, 2019	Jun. 25, 2020	Dec. 27, 2018	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Sep. 12, 2019
Notes Payable (Textual)
Description of note convertible	The Company received a Paycheck Protection Program ("PPP") loan in the amount of $1,068,686, referred to on the balance sheet as Note payable to bank. The loan has an interest rate of 1% and monthly payments of $60,154 for 18 months beginning December 5, 2020.			(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 Company had 10%, one-year convertible promissory notes outstanding totaling $1,310,893, of which $962,829 was due to related parties.
Price per share				$ 3	$ 4.25			$ 4.25
Accrued interest		$ 479,809
Convertible promissory notes							$ 837,557
Unamortized discount								$ 15,000
Notes payable to related parties		3,979,809
Accrued interest expense excluding discount amortization					164,572
Discount amortization					310,508	$ 242,933
Repaid in cash		$ 3,500,000
Issuence of debt					$ 500,000
Subscription Agreement [Member]
Notes Payable (Textual)
Descriptions of subscription agreement			Certain Notes were converted in accordance with the Subscription Agreement. As a result, principal amounts of $1,310,893, of which $962,829 was to related parties and unpaid accrued interest of $108,284, of which $71,725 was to related parties, were converted into 333,924 shares of common stock at a conversion price of $4.25 per share. The Company also paid an aggregate of $688,079 of cash to settle principal, of which $188,079 was to related parties, and $80,953 of accrued interest, of which $41,691 was to related parties, to settle the remaining convertible notes. Interest expense was $53,284 for the nine months ended September 30, 2020.
Warrant [Member]
Notes Payable (Textual)
Price per share				$ 3.50

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Jul. 09, 2020	Jul. 02, 2020	Jun. 11, 2020	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Shareholders Equity (Textual)
Reserved shares of common stock equity incentive plans						5,095,289
Fair value of common stock						$ 181,329
Restricted common shares fair value							$ 36,782
Restricted common shares for services							10,947
Proceeds from stock option exercised					$ 22,706	$ 22,706	$ 10,502
Employee warrants					50,004	50,004	245,688
Warrants exercise price				$ 5.32
Aggregate gross proceeds				$ 8,500,000		$ 7,500
Aggregate other cost						$ 59,000
Warrants [Member]
Shareholders Equity (Textual)
Employee warrants							75,688
Issuance of common stock shares							203,252
Securities Purchase Agreements [Member]
Shareholders Equity (Textual)
Aggregate shares of common stock	1,370,000		2,666,667	1,700,000
Purchase price per share	$ 7.30		$ 3	$ 5
Aggregate gross proceeds	$ 10,000,000	$ 3,715,000	$ 8,000,000	$ 4,785,000
Placement agent fee	$ 600,000		$ 480,000	$ 510,000
Director [Member]
Shareholders Equity (Textual)
Deferred stock units						5,546
Minimum [Member] | Warrants [Member]
Shareholders Equity (Textual)
Market prices							$ 3.162
Maximum [Member] | Warrants [Member]
Shareholders Equity (Textual)
Market prices							$ 5.212
Employee Stock Option [Member]
Shareholders Equity (Textual)
Proceeds from stock option exercised						$ 22,706	$ 10,502
Stock option exercised						5,225	3,388
Exercise price							$ 3.10
Employee Stock Option [Member] | Minimum [Member]
Shareholders Equity (Textual)
Exercise price					$ 4.33	$ 4.33
Employee Stock Option [Member] | Maximum [Member]
Shareholders Equity (Textual)
Exercise price					$ 4.52	$ 4.52
Employee Stock Option One [Member]
Shareholders Equity (Textual)
Stock option exercised						171,470	119,637
Issuance of common stock shares					53,684	53,684
Employee Stock Option One [Member] | Consultant [Member]
Shareholders Equity (Textual)
Stock option exercised						34,666
Market prices						$ 7.638
Employee Stock Option One [Member] | Minimum [Member]
Shareholders Equity (Textual)
Exercise price					$ 2.0605	2.0605	$ 2.0605
Market prices						6.32	2.864
Employee Stock Option One [Member] | Minimum [Member] | Consultant [Member]
Shareholders Equity (Textual)
Exercise price					2.54	2.54
Employee Stock Option One [Member] | Maximum [Member]
Shareholders Equity (Textual)
Exercise price					4.52	4.52	3.10
Market prices						7.64	$ 5.212
Employee Stock Option One [Member] | Maximum [Member] | Consultant [Member]
Shareholders Equity (Textual)
Exercise price					3.57	$ 3.57
Qualified Options [Member]
Shareholders Equity (Textual)
Stock option exercised						93,766
Nonqualified Options [Member]
Shareholders Equity (Textual)
Stock option exercised						22,463
Employee Warrants [Member]
Shareholders Equity (Textual)
Market prices						$ 7.484
Employee warrants							170,000
Warrants exercise price					$ 0.50	$ 0.50	$ 0.9375
Issuance of common stock shares					46,663	46,663
Employee Warrants [Member] | Investor [Member]
Shareholders Equity (Textual)
Exercise price					$ 3.50	$ 3.50
Market prices						$ 8.86
Employee warrants					944,444	944,444
Warrants exercise price					$ 2.83	$ 2.83
Aggregate shares of common stock						471,428
Aggregate gross proceeds						$ 1,649,999
Issuance of common stock shares					642,776	642,776
Equity Incentive Plan [Member]
Shareholders Equity (Textual)
Reserved shares of common stock equity incentive plans						693,667		2,109,839
Options and warrants outstanding					$ 4,037,929	$ 4,037,929		$ 3,293,135

Stock-Based Payments (Details)

Stock-Based Payments (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 499,921	$ 181,016	$ 1,232,519	$ 463,206
Research and development [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	64,810	52,359	164,025	125,925
Sales and marketing [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	31,121	23,849	86,027	61,455
General and administrative [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	315,274	104,808	762,520	275,826
Cost of goods sold [Member]
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 88,716		$ 219,947

Stock-Based Payments (Details T

Stock-Based Payments (Details Textual) - USD ($)	Sep. 11, 2020	Apr. 20, 2020	Jun. 30, 2020	Jun. 18, 2020	Jun. 06, 2020	Apr. 27, 2020	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Stock-Based Payments (Textual)
Stock-based compensation							$ 499,921		$ 181,016		$ 1,232,519	$ 463,206
Exercise price per share			$ 5.32							$ 5.32
Subscription agreement, description					The deferred compensation plan calls for stock units to be held on account for each director and issued 90 days after separation from service as a director. If cash reserves are estimated to be less than the amount needed for five months of operations the Directors are required to take their compensation in Deferred Stock Units under the 2018 Plan, otherwise, Directors have the option of taking compensation in any combination of cash or Deferred Stock Units.						Total compensation cost related to non-vested awards not yet recognized as of September 30, 2020 was $138,178 and will be recognized on a straight-line basis through May 2023 based on the respective vesting periods. The amount of future stock option compensation expense could be affected by any future option grants or forfeitures.
Stock units										33,486	34,901		28,673
Stock price							$ 6.58				$ 6.58		$ 1.61
Expenses								$ 53,572		$ 178,146	$ 229,649
Description of securities purchase agreement											The Company issued 60,591 common shares for accounts payable with a fair value of $181,329. The shares were valued based on the stock price at the time of the grant when the performance commitment was complete. 32,749 of these shares were for the August 3, annual renewal of an investor relations consulting contract.
Issuance of common stock shares											100,000
Annual shares renewal											32,749
Cash received			$ 8,500,000								$ 7,500
Payments of investor amount							$ 94,500		$ 0		$ 334,500	$ 48,251
Description of stock-based compensation											Total compensation cost related to non-vested awards issued under the 2018 Plan not yet recognized as of September 30, 2020 was approximately $4,160,423 and will be recognized on a straight-line basis through September 2023 based on the respective vesting periods. The amount of future stock option compensation expense could be affected by any future option grants or forfeitures.
Expected term											6 years
Risk free interest rates, Maximum											0.45%
Rrisk free interest, Minimum											0.36%
Stock price volatility, Minimum											69.40%
Stock price volatility, Maximum											74.90%
Warrants [Member]
Stock-Based Payments (Textual)
Options authorized									203,252			203,252
2018 Omnibus Stock Incentive Plan [Member]
Stock-Based Payments (Textual)
Remaining reserve of shares of common stock under plan							1,051,915				1,051,915
Stock-based compensation							$ 474,174		$ 132,335		$ 1,143,127	$ 338,278
Exercise price per share	$ 5.41
Market price per share		$ 7.638
Options authorized							1,000,000				1,000,000
Options issued											143,644
Additional shares of common stock	41,000			5,000		29,666
Fair value of options	$ 139,544			$ 13,430		$ 44,956
Stock units											507,529
Stock price				$ 3.57		$ 2.54	$ 1.15				$ 1.15
Cashless transaction shares		22,463
Description of stock-based compensation	Non-qualified options to purchase 41,000 shares of common stock were issued to consultants under the 2018 Plan with grant date fair value of $139,544. The exercise price of the options are $5.41. 20,000 of these options vest over two years and 21,000 of these options vest over one year.
2018 Omnibus Stock Incentive Plan [Member] | Warrants [Member]
Stock-Based Payments (Textual)
Stock units											46,584
2018 Omnibus Stock Incentive Plan [Member] | Employee Stock [Member]
Stock-Based Payments (Textual)
Options granted											912,000	498,600
Fair value of options							$ 3,112,715		963,929		$ 3,112,715	$ 963,929
Weighted average exercise price											$ 5.30	$ 4.52
2018 Omnibus Stock Incentive Plan [Member] | Minimum [Member]
Stock-Based Payments (Textual)
Additional shares of common stock		2,000,000
2018 Omnibus Stock Incentive Plan [Member] | Maximum [Member]
Stock-Based Payments (Textual)
Additional shares of common stock		4,000,000
2015 Stock Incentive Plan [Member]
Stock-Based Payments (Textual)
Options issued											5.444
Options granted											13,000	141,600
Employee stock-based compensation expense							$ 25,747		48,681		$ 89,392	$ 124,928
Fair value of options									$ 273,751			$ 273,751
Stock units											17,358
2012 Employee Stock Benefit Plan [Member]
Stock-Based Payments (Textual)
Warrants issued and outstanding, shares of company common stock							608,312				608,312
Warrant issued											1
Total shares issued							1,000,000				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
Board of Directors [Member]
Stock-Based Payments (Textual)
Expenses													$ 46,163

Customer Deposits (Details)

Customer Deposits (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Customer Deposits (Textual)
Deposits received	$ 561,020	$ 793,524
Refundable deposits amount	393,524	374,524
Customer deposits from related parties	100	$ 11,200
Retail Series Production Vehicles [Member] | Minimum [Member]
Customer Deposits (Textual)
Customer deposits per order	100
Retail Series Production Vehicles [Member] | Maximum [Member]
Customer Deposits (Textual)
Customer deposits per order	10,100
Signature Series Vehicles [Member]
Customer Deposits (Textual)
Customer deposits per order	$ 42,000

Commitments and Contingencies (

Commitments and Contingencies (Details)	1 Months Ended
	Mar. 06, 2020
Commitments and Contingencies (Textual)
Commitments and Contingencies, description	Arcimoto alleges that Ayro's 311 two-seater electric vehicles infringe U.S. Patent 8,985,255 (the "255 Patent"). The Complaint asks for monetary damages and enhanced damages due to willful infringement of the 255 Patent by Ayro.

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member]	Nov. 04, 2020USD ($)
Subsequent Events (Textual)
Due from related party	$ 440,754
Percentage of annual renewal premium	4.64%
Monthly payment	$ 49,924