Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Document and Entity Information [Abstract] | |
Document Type | S-1/A |
Entity Registrant Name | Lucid Group, Inc. |
Entity Small Business | false |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Amendment Flag | true |
Amendment Description | AMENDMENT NO. 1 |
Entity Central Index Key | 0001811210 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash | $ 614,412 | $ 351,684 |
Restricted cash, current portion | 11,278 | 19,767 |
Accounts receivable, net | 260 | 408 |
Short-term investments | 505 | 505 |
Inventory | 1,043 | 684 |
Prepaid expenses | 21,840 | 29,610 |
Other current assets | 13,218 | 20,578 |
Total Current Assets | 662,556 | 423,236 |
Property, plant and equipment, net | 713,274 | 142,813 |
Security deposits | 3,901 | 3,229 |
Restricted cash, less current portion | 14,728 | 8,200 |
Other noncurrent assets | 26,851 | |
TOTAL ASSETS | 1,402,681 | 579,602 |
Current liabilities: | ||
Accounts payable | 17,333 | 12,656 |
Accrued compensation | 16,197 | 2,949 |
Other accrued liabilities | 146,083 | 46,079 |
Other liabilities | 151,753 | |
Total Current Liabilities | 185,283 | 65,858 |
Contingent forward contract liability | 30,844 | |
Convertible preferred share warrant liability | 2,960 | 1,755 |
Other long-term liabilities | 38,905 | 27,793 |
Income tax liabilities | 234 | 422 |
Total Liabilities | 227,382 | 126,672 |
Commitments and contingencies | ||
CONVERTIBLE PREFERRED SHARES | ||
Convertible preferred shares, $0.0001 par value; 400,510,507 and 286,632,918 shares authorized as of December 31, 2020 and 2019, respectively; 362,011,991 and 190,084,166 shares issued and outstanding as of December 31, 2020 and 2019, respectively; liquidation preference of $3,497,913, and $1,084,191 as of December 31, 2020 and 2019, respectively | 2,494,076 | 1,074,010 |
SHAREHOLDERS' DEFICIT: | ||
Common shares, par value $0.0001; 450,000,098 and 335,130,459 shares authorized as of December 31, 2020 and 2019, respectively; 10,889,451 and 8,051,722 shares issued and outstanding as of December 2020 and 2019, respectively | 1 | 1 |
Additional Paid-in Capital | 38,115 | 16,432 |
Accumulated deficit | (1,356,893) | (637,513) |
Total Stockholders' Equity | (1,318,777) | (621,080) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,402,681 | $ 579,602 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
Convertible preferred shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Maximum aggregate number of shares sold | 437,182,072 | 437,182,072 | 400,510,507 | 286,632,918 | |
Convertible preferred shares, shares issued | 437,182,072 | 362,011,991 | 190,084,166 | 51,909,271 | |
Number of shares subject to redemption | 437,182,072 | 362,011,991 | 190,084,166 | ||
Convertible preferred shares, liquidation amount | $ 4,399,174 | $ 3,497,913 | $ 1,084,191 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common shares, shares authorized | 498,017,734 | 498,017,734 | 450,000,098 | 335,130,459 | |
Common shares, shares issued | 13,917,981 | 10,889,451 | 8,051,722 | ||
Common shares, shares outstanding | 13,917,981 | 10,889,451 | 8,051,722 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 3,976 | $ 4,590 |
Cost of revenue | 3,070 | 3,926 |
Gross profit | 906 | 664 |
Operating expenses: | ||
Research and development | 511,110 | 220,223 |
Selling, general and administrative | 89,023 | 38,375 |
Total operating expenses | 600,133 | 258,598 |
Loss from operations | (599,227) | (257,934) |
Other income: | ||
Change in fair value of forward contracts | (118,382) | (15,053) |
Change in fair value of derivative liabilities | (1,205) | (406) |
Interest expense | (64) | (8,547) |
Other income (expense) | (690) | 4,606 |
Other expense net | (120,341) | (19,400) |
Loss before provision for income taxes | (719,568) | (277,334) |
Provision for (benefit from) income taxes | (188) | 23 |
Net loss | (719,380) | (277,357) |
Non-redeemable Net loss | $ (705,596) | $ (269,422) |
Net loss per share attributable to common shareholders - basic and diluted (in dollars per share) | $ (75.15) | $ (34.59) |
Weighted average shares used in computing net loss per share attributable to common shareholders - basic and diluted (in shares) | 9,389,540 | 7,789,421 |
Series B convertible preferred shares | ||
Other income: | ||
Deemed contribution related to repurchase of convertible preferred shares | $ 1,000 | |
Series C convertible preferred shares | ||
Other income: | ||
Deemed contribution related to repurchase of convertible preferred shares | $ 12,784 | $ 7,935 |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - USD ($) $ in Thousands | Series B convertible preferred shares | Series C convertible preferred shares | Series D convertible preferred shares | Series E convertible preferred shares | Series D contingent forward contract liability | Series E contingent forward contract liability | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2018 | $ 259,960 | |||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 51,909,271 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Repurchase of Series C convertible preferred shares | $ (47,531) | |||||||||
Repurchase of Series B convertible preferred shares (in shares) | (3,571,429) | |||||||||
Extinguishment of Series C convertible preferred shares | $ (10,404) | |||||||||
Issuance of convertible preferred shares | $ 871,985 | |||||||||
Number of shares issued | 141,746,324 | |||||||||
Ending balance at Dec. 31, 2019 | $ 1,074,010 | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | 190,084,166 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Operating losses, including net losses | $ (277,357) | |||||||||
Exercise of share options (in shares) | 424,761 | |||||||||
Balance at Dec. 31, 2019 | $ 1 | $ 16,432 | $ (637,513) | $ (621,080) | ||||||
Balance (in shares) at Dec. 31, 2019 | 8,051,722 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Issuance of convertible preferred shares | $ 400,000 | |||||||||
Number of shares issued | 62,402,501 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Operating losses, including net losses | (246,868) | (246,868) | ||||||||
Exercise of share options | 323 | 323 | ||||||||
Exercise of share options (in shares) | 348,752 | |||||||||
Share-based compensation | 1,981 | 1,981 | ||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||
Beginning balance at Dec. 31, 2019 | $ 1,074,010 | |||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 190,084,166 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Repurchase of Series C convertible preferred shares | $ (24,885) | |||||||||
Repurchase of Series B convertible preferred shares (in shares) | (4,352,265) | |||||||||
Issuance of convertible preferred shares | $ 400,000 | $ 898,932 | ||||||||
Number of shares issued | 62,402,501 | 113,877,589 | ||||||||
Extinguishment and reclassification of Series B convertible preferred shares | $ (4,000) | |||||||||
Settlement of Series D contingent forward contract liability | $ 39,563 | $ 110,456 | ||||||||
Ending balance at Dec. 31, 2020 | $ 2,494,076 | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 362,011,991 | |||||||||
Balance at Dec. 31, 2019 | $ 1 | 16,432 | (637,513) | $ (621,080) | ||||||
Balance (in shares) at Dec. 31, 2019 | 8,051,722 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Operating losses, including net losses | $ (719,380) | |||||||||
Exercise of share options (in shares) | 2,837,729 | |||||||||
Balance at Dec. 31, 2020 | $ 1 | 38,115 | (1,356,893) | $ (1,318,777) | ||||||
Balance (in shares) at Dec. 31, 2020 | 10,889,451 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Issuance of convertible preferred shares | $ 200,000 | |||||||||
Number of shares issued | 31,201,256 | |||||||||
Balance at Mar. 31, 2020 | $ 1 | 17,436 | (767,096) | (749,659) | ||||||
Balance (in shares) at Mar. 31, 2020 | 8,186,387 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Operating losses, including net losses | (117,285) | (117,285) | ||||||||
Exercise of share options | 290 | 290 | ||||||||
Exercise of share options (in shares) | 214,087 | |||||||||
Share-based compensation | 1,010 | 1,010 | ||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||
Ending balance at Dec. 31, 2020 | $ 2,494,076 | |||||||||
Ending balance (in shares) at Dec. 31, 2020 | 362,011,991 | |||||||||
Balance at Dec. 31, 2020 | $ 1 | 38,115 | (1,356,893) | $ (1,318,777) | ||||||
Balance (in shares) at Dec. 31, 2020 | 10,889,451 | |||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Repurchase of Series B convertible preferred shares (in shares) | (1,333,333) | |||||||||
Number of shares issued | 75,918,392 | |||||||||
Ending balance at Jun. 30, 2021 | $ 5,836,785 | |||||||||
Ending balance (in shares) at Jun. 30, 2021 | 13,917,981 | 437,182,072 | ||||||||
Balance at Dec. 31, 2020 | $ 1 | 38,115 | (1,356,893) | $ (1,318,777) | ||||||
Balance (in shares) at Dec. 31, 2020 | 10,889,451 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Operating losses, including net losses | (1,009,678) | (1,009,678) | ||||||||
Exercise of share options | 5,266 | $ 5,266 | ||||||||
Exercise of share options (in shares) | 3,028,530 | 3,028,530 | ||||||||
Share-based compensation | 5,630 | $ 5,630 | ||||||||
Balance at Jun. 30, 2021 | $ 1 | 26,615 | (4,495,788) | (4,469,172) | ||||||
Balance (in shares) at Jun. 30, 2021 | 13,917,981 | |||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||
Issuance of convertible preferred shares | $ 1,361,273 | |||||||||
Number of shares issued | 25,306,130 | |||||||||
Ending balance at Jun. 30, 2021 | $ 5,836,785 | |||||||||
Ending balance (in shares) at Jun. 30, 2021 | 13,917,981 | 437,182,072 | ||||||||
Balance at Mar. 31, 2021 | $ 1 | 6,198 | (4,234,062) | $ (4,227,863) | ||||||
Balance (in shares) at Mar. 31, 2021 | 13,498,196 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Operating losses, including net losses | (261,726) | (261,726) | ||||||||
Exercise of share options | 950 | 950 | ||||||||
Exercise of share options (in shares) | 419,785 | |||||||||
Share-based compensation | 3,748 | 3,748 | ||||||||
Balance at Jun. 30, 2021 | $ 1 | $ 26,615 | $ (4,495,788) | $ (4,469,172) | ||||||
Balance (in shares) at Jun. 30, 2021 | 13,917,981 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Net loss | $ (1,009,678) | $ (246,868) | $ (719,380) | $ (277,357) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 11,738 | 3,292 | 10,217 | 3,842 |
Share-based compensation | 129,244 | 1,981 | 4,614 | 7,719 |
Loss on disposal of property and equipment | 56 | 139 | 139 | 30 |
Amortization of debt discount from contingent forward contracts (Note 6) | 2,747 | 0 | 3,394 | |
Change in fair value of contingent forward contracts | 454,546 | 8,719 | 118,382 | 15,053 |
Changes in fair value of derivative liabilities | 6,976 | 114 | 1,205 | 406 |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (220) | 148 | 148 | 984 |
Inventory | (27,181) | (1,703) | (359) | (188) |
Prepaid expenses and other current assets | (11,233) | 3,469 | 7,770 | (27,590) |
Other current assets | (2,380) | 2,789 | 7,360 | (5,010) |
Other noncurrent assets and security deposit | (3,870) | (2,455) | 2,866 | 6,143 |
Accounts payable | (11,871) | 4,253 | (69,861) | 5,843 |
Accrued compensation | 7,990 | 6,128 | 13,249 | 2,774 |
Other current liabilities and accrued liabilities | 4,522 | 11,752 | 53,454 | 28,658 |
Net cash used in operating activities | (453,804) | (208,242) | (570,196) | (235,299) |
Cash flows from investing activities: | ||||
Purchases of property, equipment, and software | (206,533) | (251,090) | (459,582) | (104,290) |
Net cash used in investing activities | (206,514) | (251,090) | (459,582) | (104,290) |
Cash flows from financing activities: | ||||
Proceeds from the issuance of the Convertible Notes | 70,949 | |||
Payment for Capital leases | (90) | (364) | ||
Payment for Capital leases | 1,364 | |||
Repurchase of Series C convertible preferred shares | (3,000) | (12,101) | (50,000) | |
Proceeds from exercise of share options | 5,266 | 323 | 3,285 | 483 |
Net cash provided by used in financing activities | 612,105 | 400,233 | 1,290,545 | 621,432 |
Net increase in cash, cash equivalents, and restricted cash | (48,213) | (59,099) | 260,767 | 281,843 |
Beginning cash, cash equivalents, and restricted cash | 640,418 | 379,651 | 379,651 | 97,808 |
Ending cash, cash equivalents, and restricted cash | 592,205 | 320,552 | 640,418 | 379,651 |
Reconciliation of cash, cash equivalents, and restricted cash | ||||
Cash | 557,938 | 293,896 | 614,412 | 351,684 |
Restricted cash | 26,006 | 27,967 | ||
Total cash and restricted cash | 592,205 | 320,552 | 640,418 | 379,651 |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 51 | 30 | ||
Supplemental disclosure of non-cash investing and financing activity: | ||||
Property and equipment included in accounts payable and accrued expense | 117,946 | 32,863 | ||
Property and equipment acquired through capital leases | 4,437 | 3,289 | 451 | |
Issuance of contingent forward contracts | 793 | |||
Extinguishment of Series B convertible preferred shares included in additional paid-in capital | 1,000 | |||
Extinguishment of Series B convertible preferred shares included in accrued liabilities | 3,000 | |||
Convertible Notes converted into Series D convertible preferred shares | 300,000 | |||
Unamortized Convertible Notes debt issuance cost and debt discount converted into Series D convertible preferred shares | (36,797) | |||
Accrued interest of Convertible Notes converted to Series D convertible preferred shares | 8,747 | |||
Deferred financing cost reclassed to convertible preferred shares | 10,253 | |||
Series D contingent forward contract liability | ||||
Supplemental disclosure of non-cash investing and financing activity: | ||||
Contingent forward contract liability reclassified | 39,563 | |||
Series E contingent forward contract liability | ||||
Supplemental disclosure of non-cash investing and financing activity: | ||||
Contingent forward contract liability reclassified | 110,456 | |||
Series D convertible preferred shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of shares | 3,000 | 400,000 | 400,000 | $ 600,000 |
Supplemental disclosure of non-cash investing and financing activity: | ||||
Contingent forward contract liability reclassified | $ (39,563) | |||
Series E convertible preferred shares | ||||
Cash flows from financing activities: | ||||
Proceeds from issuance of shares | 600,000 | $ 899,725 | ||
Supplemental disclosure of non-cash investing and financing activity: | ||||
Contingent forward contract liability reclassified | $ (2,621,878) |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | ||
DESCRIPTION OF BUSINESS | NOTE 1 DESCRIPTION OF BUSINESS Overview Atieva, Inc. and its wholly owned subsidiaries (collectively, “Lucid,” the “Company,” “we,” “us” or “our”) is a technology and automotive company. The Company was founded in Silicon Valley in 2007 to develop the next generation of electric vehicle (“ EV On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. Upon the completion of the merger on July 23, 2021 (the "Closing"), the Company changed its name to Lucid Group, Inc. ("Lucid Group") and effectively comprised all of CCIV’s material operations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through June 30, 2021, the Company has incurred operating losses and negative cash flows from operating activities. For the six months ended June 30, 2021 and 2020, the Company has incurred operating losses, including net losses of $1.0 billion and $246.9 million, respectively. The Company has an accumulated deficit of $4.5 billion as of June 30, 2021. As of the end of June 30, 2021, the Company completed the first phase of the construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin commercial production of its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these condensed consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares. Upon the completion of the merger with CCIV, the Company received approximately an incremental $2.1 billion in cash from CCIV. In addition, the Company received $2.5 billion in Private Investment in Public Entity ("PIPE") investment. As such, this business combination eliminated the substantial doubt about the Company's ability to continue as a going concern within one year after the date the Current Report on Form 8-K/A to which this document forms an exhibit is available to be filed. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high-technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. | NOTE 1 — Overview The precursor of Atieva, Inc. (DBA Lucid Motors) was originally incorporated in the state of Delaware in December 2007 (“Atieva Delaware”). Atieva Delaware designed, developed, and built energy storage systems for electric vehicles and supplied automakers with the battery pack system needed to power hybrid, plug-in, and electric vehicles. In December 2009, Atieva Delaware and a newly incorporated Cayman Islands company (“Atieva Cayman”) entered into a share exchange agreement (the “Share Exchange Agreement”). Under the Share Exchange Agreement, (a) each holder of Atieva Delaware common shares exchanged such shares for shares of Atieva Cayman’s par value $0.0001 common shares (the “Common Shares”) on a one-for-one basis, and (b) each holder of Atieva Delaware Series A shares exchanged such shares for Atieva Cayman Series A shares on a one-for-one basis. Upon completion of the share exchange, Atieva Delaware was renamed as Atieva USA, Inc. with Atieva Cayman retaining the name of Atieva, Inc. Subsequent to the share exchange transaction, Atieva Delaware distributed 100% of its wholly owned subsidiaries in Hong Kong and Shanghai, China (“Atieva Hong Kong” and “Atieva Shanghai,” respectively) to Atieva Cayman in December 2010. In addition, Atieva Delaware registered a branch office in Taiwan in May 2008. In 2014, Atieva Cayman and its subsidiaries (the “Company” or “our”) changed its business model to focus on the design and development of high-performance fully electric vehicles and advanced electric vehicle powertrain components. As part of the build-out of the Company’s retail stores and service centers for distribution of vehicles to customers, the Company changed Atieva Delaware’s legal name to Lucid USA, Inc., and incorporated new subsidiaries in the U.S. and Canada, including Lucid Group USA, Inc., a Delaware corporation in August 2020, and Lucid Motors Canada ULC, a British Columbia unlimited liability company and an indirect, wholly-owned subsidiary of Lucid Group USA, Inc. in December 2020. The Company is headquartered in Newark, California and has various other global office locations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through December 31, 2020, the Company has incurred operating losses and negative cash flows from operating activities. For the years ended December 31, 2020 and 2019, the Company has incurred operating losses, including net losses of $719.4 million and $277.4 million, respectively. The Company has an accumulated deficit of $1.4 billion as of December 31, 2020. As of the end of 2020, the Company was finalizing construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin selling its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources were not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares, convertible notes, long-term debt and net proceeds from revenues. As discussed in Note 15 — Subsequent Events, on February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE: CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement with the Company for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. Upon completion of the merger, the Company expects to receive a minimum of $2.8 billion of incremental cash from a combination of cash at CCIV and a “Private Investor in Public Entity” (PIPE) investment. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in the other current assets is comprised primarily of customer reservation payments for electric vehicles and other escrow deposit for building of the Arizona plant. Restricted cash included in other non-current assets is primarily related to letters of credit issued to the landlord for the Company’s headquarter in Newark, California and retail locations, and escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. Other Significant Accounting Policies As of June 30, 2021, there were no material changes in the other significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1 filed with SEC on August 2, 2021. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. The Company has restricted cash in current assets of $11.3 million and $19.8 million as of December 31, 2020 and 2019, respectively, consisting of customer reservation payments for electric vehicles of $0.5 million and $0.3 million and the escrow deposit for building of the Arizona plant of $ 10.8 million and $19.5 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company has $14.7 million and $8.2 million, respectively, held in long-term restricted cash consisting of $5.0 million and $5.0 million, respectively, for the letter of credit required by the landlord for the headquarter facility in Newark, California, $8.0 million and $1.5 million, respectively, in letter of credit required by the landlord for the retail locations, and $1.7 million and $1.7 million, respectively, in escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 Accounts Receivable Accounts receivable consist of current trade receivables from a single customer. The Company records accounts receivable at their net realizable value. Management’s estimate for expected credit losses for outstanding accounts receivable are based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and the establishment of specific reserves for customers in an adverse financial condition. Adjustments are made based upon the Company’s expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. The Company also considers current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company reassesses the adequacy of estimated credit losses each reporting period. At December 31, 2020 and 2019, the Company did not record an allowance for doubtful accounts. Short-Term Investments Investments with original or remaining maturities of more than three months at the time of purchase are generally classified as short-term investments and consist of time deposits. The Company’s short-term investments consist of certificates of deposit totaling $0.5 million as of December 31, 2020 and 2019. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization for leasehold improvements. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. The Company generally uses the following estimated useful lives for each asset category: Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements that increase functionality of the asset are capitalized and depreciated ratably over the identified useful life. Upon disposition or retirement of property and equipment, the related cost and accumulated depreciation and amortization are removed, and any gain or loss is reflected in operations. The Company recorded a disposition loss on fixed assets of $0.1 million for the year ended December 31, 2020 and an immaterial loss for the year ended December 31, 2019. Inventory Inventory, consisting of raw materials, work in progress and finished goods is stated at the lower of cost or net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on a first-in, first-out basis. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered to be held in excess of demand or obsolete based upon assumptions about future demand and market conditions. The Company also reviews the status of the inventory periodically to determine whether a lower of cost or net realizable value analysis needs to be performed based on market pricing. The Company’s inventory is associated with battery pack system projects with its customer and consists of the following (in thousands): December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 The Company did not adjust the cost basis of its inventory as of December 31, 2020 and 2019. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019. Foreign Currency The US dollar is the functional currency of the Company’s consolidated subsidiaries operating outside of the US. Monetary assets and liabilities of these subsidiaries are remeasured into US dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are remeasured at historical rates. Expenses incurred in currencies other than the US dollar (the functional currency) are remeasured at average exchange rates in effect during each period. Foreign currency gains and losses from remeasurement are included within other income (expense) — net in the Company’s consolidated statements of operations, and the Company recorded a foreign currency loss of $2.5 million for the year ended December 31, 2020 mainly due to the currency fluctuations of Euro, Japanese yen, and South Korean won, and an immaterial loss for the year ended December 31, 2019. Revenue from Contracts with Customers On January 1, 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method which did not result in an adjustment upon adoption. The Company follows a five-step process in which the Company identifies the contract, identifies the related performance obligations, determines the transaction price, allocates the contract transaction price to the identified performance obligations, and recognizes revenue when (or as) the performance obligations are transferred to the customer. The Company’s revenue consists of the sales of battery pack systems, supplies and related services for vehicles. The Company identifies the sale of battery pack systems and the related supplies as a performance obligation to be recognized at the point in time when control is transferred to the customer. Control transfers to the customer when the product is delivered to the customer as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Shipping and handling provided by Company is considered a fulfillment activity. While customers generally have the right to return defective or non-conforming products, past experience has demonstrated that product returns have been immaterial. Customer remedies may include either a cash refund or an exchange of the returned product. As a result, the right of return and related refund liability for non-conforming or defective goods is estimated and recorded as a reduction in revenue, if necessary. Payment for the products sold are made upon invoice or in accordance with payment terms customary to the business. The Company’s contracts do not contain significant financing components. Customer contracts generally do not include more than one performance obligation. If a contract were to contain more than one performance obligation, the Company shall allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. The Company does not have any remaining performance obligations or contract assets and liabilities as of December 31, 2020 and 2019. Cost of Revenue Cost of revenue includes direct parts, material and labor costs, manufacturing overhead, including amortized tooling costs, shipping and logistic costs, and reserves for estimated warranty expenses related to its battery packs. Cost of revenue also includes adjustments to warranty expense and charges to write down the carrying value of inventory when it exceeds its estimated net realizable value or to provide for obsolete and on-hand inventory in excess of forecasted demand. Warranties The Company provides a manufacturer’s warranty on all battery packs it sells and accrues a warranty reserve for such battery packs, as applicable. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. Current estimates of the warranty reserve are immaterial, but changes to the Company’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities in the consolidated balance sheets. The Company recorded warranty expense of zero and $0.1 million as a component of cost of revenue in the consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. Share-Based Compensation Share-based compensation expense related to share-based awards granted to employees is measured and recognized in the Company’s consolidated financial statements based on fair value. Share-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for each employee share option expected to vest. The fair value of each share option granted to employees and nonemployees is estimated on the grant date using the Black-Scholes option-pricing model. For nonemployee share options, the fair value is remeasured as the share options vest, and the resulting change in fair value, if any, is recognized in the consolidated statements of operations during the period the related services are rendered. Comprehensive Income (Loss) Comprehensive loss is composed of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under US GAAP are recorded as an element of shareholders’ equity (deficit) but are excluded from net loss. For the years ended December 31, 2020 and 2019, as there are no activities that impacted comprehensive income (loss), there are no differences between comprehensive loss and net loss reported in the Company’s consolidated statements of operations. Research and Development Research and development expenses consist primarily of personnel-related expenses, contractor fees, engineering design and testing expenses, and allocated facilities cost. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses have been expensed as incurred and included in the consolidated statements of operations. Selling, General, and Administrative Selling, general and administrative expense consist of personnel and facilities costs related to marketing, sales, finance, human resources, information technology, and legal departments. Advertising Advertising is expensed as incurred and is included in sales and marketing expenses in the consolidated statements of operations. These costs were immaterial for the years ended December 31, 2020 and 2019, respectively. Leases An arrangement is or contains a lease if there are specified assets and the right to control the use of a specified asset is conveyed for a period in exchange for consideration. Upon lease inception, the Company classifies leases as either operating or capital leases. Leases are classified as capital leases when the terms of the lease transfers substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating leases are not recognized on the consolidated balance sheets. For capital leases, the Company recognizes capital lease assets and corresponding lease liabilities within the consolidated balance sheets at lease commencement at the present value of the rental payments. The Company recognizes rent expense on a straight-line basis in the statements of operations for operating leases. For capital leases, the Company recognizes interest expense associated with the capital lease liability and depreciation expense associated with the capital lease asset. For capital lease assets and leasehold improvements, the estimated useful lives are limited to the shorter of the useful life of the asset or the term of the lease. The Company enters into operating and capital leases associated with its office space, manufacturing and retail facilities, and equipment. On certain of its operating lease agreements, the Company may receive rent holidays and other incentives, which are recognized over the lease term through rent expense. The difference between rent expense and the cash paid under the lease agreement is recorded as deferred rent. Lease incentives, including tenant improvement allowances, are also recorded as deferred rent and amortized on a straight-line basis over the lease term. The Company recorded deferred rent under other short-term and long-term liabilities in the consolidated balance sheets as of December 31, 2020 and 2019. If the term of the lease does not exceed 12 months, the Company elects to record the rental expense in the period it is incurred, and no deferred rent will be recorded. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount within a range of loss can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Legal costs incurred in connection with loss contingencies are expensed as incurred. Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance outlines a comprehensive model for entities to use in accounting for leases and supersedes most current lease accounting guidance, including industry-specific guidance. The core principle of the new lease accounting model is that lessees are required, among other things, to recognize lease assets and lease liabilities in the consolidated balance sheets for those leases classified as operating leases under previous authoritative guidance. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company will apply the new transition method prescribed by ASU No. 2018-11 at the adoption date. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2022. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments, and amends existing earnings-per-share, or EPS, guidance by requiring that an entity use the if-converted method when calculating diluted EPS for convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We plan to adopt ASU 2020-06 effective January 1, 2022 and are currently evaluating the effect ASU 2020-06 will have on our consolidated financial statements and related disclosures. |
BALANCE SHEETS COMPONENTS
BALANCE SHEETS COMPONENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BALANCE SHEETS COMPONENTS | ||
BALANCE SHEETS COMPONENTS | NOTE 3 — BALANCE SHEETS COMPONENTS OTHER CURRENT AND LONG-TERM LIABILITIES Other current liabilities and long-term liabilities as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Engineering, design, and testing $ 42,674 $ 42,518 Construction of Arizona plant 12,227 43,115 Retail leasehold improvements 15,153 6,114 Professional services 5,399 9,083 Tooling 8,770 15,243 Payroll tax liability 32,728 — Series B convertible preferred share repurchase liability — 3,000 Short-term insurance financing note 8,204 980 Operating lease liabilities, current portion 11,620 — Other liabilities 22,274 31,700 Total other current liabilities $ 159,049 $ 151,753 As of June 30, 2021, the Company accrued a non-income tax liability of $32.7 million as other liabilities primarily related to payroll tax associated with certain compensation related events. The Company also recorded a $27.4 million receivable from employees related to this non-income tax liability as other receivables on the condensed consolidated balance sheets as of June 30, 2021. In April 2021, the Company financed an insurance premium of $11.0 million with a bank related to three commercial insurance policies. All three insurance policies have a one year term. The Company made a down payment for the insurance premium finance note of $0.9 million, and the total interest was $0.1 million, representing an annual interest of 2.65%. The Company will make 11 monthly installments of $0.9 million for principal and interest from May 2021 to March 2022. The Company recorded the total insurance premium of $11.0 million as prepaid insurance and is amortizing it on a straight-line basis over the insurance term of one year. The Company made $2.7 million of principal payments and $24.2 thousand of interest payments on the short-term insurance financing note during the three and six months ended June 30, 2021. The remaining principal balance of $8.2 million is recorded as part of the Company’s other current liabilities as of June 30, 2021. June 30, December 31, 2021 2020 Deferred rent $ — $ 28,881 Customer deposits 11,908 8,028 Capital lease liabilities — 1,996 Operating leases liabilities, net of current portion 152,639 — Total other long-term liabilities $ 164,547 $ 38,905 PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Land and land improvements $ 1,050 $ 1,050 Building and improvements 189,466 — Machinery 35,847 28,830 Computer equipment and software 20,755 15,716 Leasehold improvements 72,521 47,187 Furniture and fixtures 7,256 4,503 Capital leases — 3,908 Finance leases 7,674 — Construction in progress 588,057 636,851 Total property, plant, and equipment 922,626 738,045 Less accumulated depreciation and amortization (34,852) (24,771) Property, plant, and equipment – net $ 887,774 $ 713,274 Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities including tooling, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location in the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are ready for use. Construction in progress consisted of the following (in thousands): June 30, December 31, 2021 2020 Tooling $ 277,512 $ 203,241 Construction of Arizona plant 4,701 171,532 Leasehold improvements 59,478 50,790 Machinery and equipment 246,366 211,288 Total construction in progress $ 588,057 $ 636,851 Depreciation and amortization expense for the three months ended June 30, 2021 and 2020, was approximately $6.8 million and $1.8 million, respectively, and for the six months ended June 30, 2021 and 2020, was approximately $11.7 million and $3.3 million, respectively. | NOTE 3 — BALANCE SHEETS COMPONENTS Prepaid Expenses Prepaid expenses as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Engineering, design, and testing $ 14,871 $ 8,016 Software subscriptions 4,531 1,875 Prepayments for Arizona manufacturing equipment 80 13,895 Vehicle engineering 20 4,855 Other 2,338 969 Total prepaid expenses $ 21,840 $ 29,610 Other Current Assets Other current assets as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Tenant allowance receivable $ 12,905 $ 20,463 Other current assets 313 115 Total other current assets $ 13,218 $ 20,578 Other Accrued and Long-term Liabilities Other accrued liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Construction of Arizona plant $ 43,115 $ 27,906 Engineering, design, and testing 42,518 11,179 Tooling 15,243 138 Professional services 9,083 1,155 Series B convertible preferred shares repurchase liability 3,000 — Other liabilities 33,124 5,701 Total other accrued liabilities $ 146,083 $ 46,079 Other long-term liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Deferred rent $ 28,881 $ 26,175 Customer deposits 8,028 1,374 Capital leases 1,996 244 Total other long-term liabilities $ 38,905 $ 27,793 Property, Plant, and Equipment, net Property, plant, and equipment as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Land and land improvements $ 1,050 $ — Machinery 28,830 13,127 Computer equipment and software 15,716 11,921 Leasehold improvements 47,187 10,441 Furniture and fixtures 4,503 1,520 Capital leases 3,908 619 Construction in progress 636,851 119,739 Total property, plant, and equipment 738,039 157,367 Less accumulated depreciation and amortization (24,771) (14,554) Property, plant, and equipment – net $ 713,274 $ 142,813 Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities including tooling, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location in the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are ready for use. Construction in progress consisted of the following (in thousands): December 31, 2020 2019 Tooling $ 203,241 $ 27,025 Construction of Arizona plant 171,532 59,842 Leasehold improvements 50,790 22,667 Machinery and equipment 211,288 10,205 Total construction in progress $ 636,851 $ 119,739 Depreciation and amortization expense for the years ended December 31, 2020 and 2019, was approximately $10.2 million and $3.8 million, respectively, including capital lease depreciation expense of approximately $0.5 million and $0.2 million, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 4 — FAIR VALUE MEASUREMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 5 “Contingent Forward Contracts” and Note 6 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ — $ 30,844 Issuance 2,167,332 — Change in fair value 454,546 8,719 Settlement (2,621,878) (39,563) Fair value-end of period $ — $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ 2,960 $ 1,755 Change in fair value 6,976 114 Settlement (9,936) — Fair value-end of period $ — $ 1,869 | NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability and contingent forward contract liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 6 “Contingent Forward Contracts” and Note 7 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 15,791 Change in fair value 15,053 Fair value-December 31, 2019 30,844 Change in fair value of Series D contingent forward contract 8,720 Settlement of Series D contingent forward contract (39,563) Issuance of Series E contingent forward contract 793 Change in fair value of Series E contingent forward contract 109,662 Settlement of Series E contingent forward contract (110,456) Fair value-December 31, 2020 $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 1,349 Change in fair value 406 Fair value-December 31, 2019 1,755 Change in fair value 1,205 Fair value-December 31, 2020 $ 2,960 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE NOTES | |
CONVERTIBLE NOTES | NOTE 5 — CONVERTIBLE NOTES In September 2018, the Company entered into a securities purchase agreement (the “Security Purchase Agreement”) of $1.3 billion with the Public Investment Fund (“PIF”) of Saudi Arabia. Among the $1.3 billion investment, $300.0 million of the Security Purchase Agreement was funded by Convertible Notes, and the remaining $1.0 billion will be funded by Series D convertible preferred shares (“Series D”). The initial investment from the investor was in the form of convertible notes (the “Convertible Notes”), representing a total investment amount of $300.0 million, as follows: (i) initial Convertible Notes issued in September 2018 of $119.0 million ($120.0 million net of $1.0 million payment to third parties on behalf of PIF) and (ii) follow-on installment Convertible Notes of $30.0 million per month from October 2018 to March 2019. Interest rates for the Convertible Notes is 8% per annum. Convertible Notes outstanding at December 31, 2018 was $209.0 million. The additional follow-on installments came in as scheduled through March 2019 for a total of additional $90.0 million of Convertible Notes. Upon approval by the Committee on Foreign Investment in the United States (CFIUS) of the Series D convertible preferred share financing in March 2019, in April 2019, the Company received the first tranche of Series D convertible preferred shares of $200.0 million, and all the principal and accrued interest of the Convertible Notes converted into Series D convertible preferred shares. Refer to Note 8 “Convertible Preferred Shares and Shareholders’ Deficit” for Series D convertible preferred share issuance details. Along with the Convertible Notes issuance, the Company granted PIF contingent forward contracts to participate in the future Series D convertible preferred share financing. The contingent forward contracts were determined to be accounted for similar to a derivative and the initial fair value was recorded as a debt discount and contingent forward contracts liability on the Convertible Notes issuance date. The initial contingent forward contract liability fair value of $18.6 million was determined utilizing the market approach, including both the back-solve method and the guideline public company method, and was subsequently remeasured to fair value each reporting period with the changes recorded in the consolidated statements of operations. Refer to Note 6 “Contingent Forward Contracts” for detail. Per the Security Purchase Agreement, the Company was required to pay an advisory fee to the advisor who helped the Company secure the transaction with the investor no later than September 2019. The Company incurred approximately $13.7 million in transaction costs in connection with the issuance of the Convertible Notes. In accordance with accounting for debt with conversions and other options, transaction costs were allocated pro rata based on the liability and equity components of $300.0 million and $1.0 billion, respectively. As such, $3.2 million of the transaction cost was allocated to debt issuance costs for the Convertible Notes, and $0.3 million of the transaction cost was allocated to share issuance costs for Series D convertible preferred shares in 2019. The Company amortized the total debt issuance cost of the Convertible Notes in the amount of $21.8 million, consisting of the $18.6 debt discount and the $3.2 million allocated transaction cost over the Convertible Notes term of 18 months starting in September 2018 under the effective interest method. The effective interest rate of the Convertible Notes is 2.47% per annum. The amortization of the debt issuance costs was $3.4 million for the year ended December 31, 2019. The following table sets forth interest expense information related to the Convertible Notes for the year ended December 31, 2019 (in thousands): Year Ended December 31, 2019 Amortization of issuance costs allocated to Convertible Notes $ 494 Amortization of debt discount from contingent forward contracts (Note 6) 2,900 Total interest expense $ 3,394 After CFIUS granted approval of the investment in March 2019, the Company converted all outstanding Convertible Notes into Series D convertible preferred shares in April 2019. The conversion consists of the $263.2 million Convertible Notes net of debt issuance costs and accrued interest of $8.8 million. See below for the conversion details: Convertible Notes issued in 2018 $ 210,000 Debt discount and debt issuance cost incurred (22,763) Amortization of debt discount and issuance cost 1,623 Convertible Notes balance as of December 31, 2018 188,860 Convertible Notes issued in 2019 90,000 Debt discount and debt issuance cost incurred (19,051) Amortization of debt discount and issuance cost 3,394 Convertible Notes balance as of April 2, 2019 263,202 Accrued interest of Convertible Notes 8,782 Convertible Notes converted to Series D convertible preferred shares $ 271,984 The Security Purchase Agreement also required the repurchase, redemption, and cancellation of certain amounts of Series C convertible preferred shares. For the detail of the repurchase of Series C convertible preferred shares, refer to Note 8 “Convertible Preferred Shares and Shareholders’ Deficit.” |
CONTINGENT FORWARD CONTRACTS
CONTINGENT FORWARD CONTRACTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONTINGENT FORWARD CONTRACTS | ||
CONTINGENT FORWARD CONTRACTS | NOTE 5 — CONTINGENT FORWARD CONTRACTS In September 2018, the Company entered into a Securities Purchase Agreement with PIF. Along with the execution of the Securities Purchase Agreement, the Company granted PIF the right to purchase the Company’s Series D convertible preferred shares in future periods. The Company determined PIF’s right to participate in future Series D convertible preferred shares financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $18.6 million as a debt discount to the Convertible Notes issued in September 2018. In March 2020, the Company received $200.0 million in exchange for 31,201,245 shares of Series D convertible preferred shares as partial settlement of the Series D contingent forward contract liability and revalued the contingent forward contract liability to the then fair value of $36.4 million and reclassified $18.2 million of the contingent forward contract liability into Series D convertible preferred shares. In June 2020, upon satisfaction of the second set of milestones (refer to Note 7 “Convertible Preferred Shares and Shareholders’ Deficit”), the Company received the remaining $200.0 million in exchange for 31,201,256 shares of Series D convertible preferred shares as final settlement of the Series D contingent forward contract liability and revalued the contingent forward contracts liability to the then fair value of $39.6 million and reclassified the liability into Series D convertible preferred shares. The Series D contingent forward contract liability incurred a total fair value loss of $3.2 million and $8.7 million during the three and six months ended June 30, 2020. Since the Series D contingent forward contract liability was fully settled in June 2020, there was no related outstanding contingent forward contract liability as of June 30, 2020. As discussed in Note 7 “Convertible Preferred Shares and Shareholders’ Deficit”, in September 2020, along with the execution of the Securities Purchase Agreement, the Company granted Ayar Third Investment Company (“Ayar”) the right to purchase the Company’s additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred shares financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $0.8 million into contingent forward contract liabilities. In December 2020, Ayar waived the Company’s remaining outstanding obligations, and the Company received $400.0 million for the issuance of Series E convertible preferred shares. Upon settlement, the Company revalued the Series E contingent forward contracts to the then fair value of $110.5 million and reclassified the contingent forward contract liability into Series E convertible preferred shares. The Company recorded a loss of $109.7 million related to fair value remeasurements of the Series E contingent forward contracts during the year ended December 31, 2020. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 Series E convertible preferred share at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to enter into the fourth closing to purchase up to 8,977,769 shares of Series E convertible preferred shares on a pro rata basis at $7.90 per share, aggregating to $71.0 million. In addition, the amendment allowed the Company to offer for purchase at the fourth closing at $7.90 per share, a number of Series E Preferred Shares to senior management employees, directors, consultants, advisors and/or contractors of the Company (“Additional Purchaser”) and Ayar. Refer to Note 7 “Convertible Preferred Share and Shareholders’ Deficit”. In April 2021, the Company issued 25,306,130 Series E convertible preferred shares from the fourth closing at $7.90 per share for cash consideration of $200.0 million. The Company received $107.1 million of the total issuance proceeds in March 2021 and the remaining $92.9 million in April 2021 (refer to Note 7 “Convertible Preferred Shares and Shareholders’ Deficit”). The Company determined the right to participate in future Series E convertible preferred share financing to be a freestanding financial instrument similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $1.4 billion and $722.4 million for the third closing and fourth closing, respectively, as contingent forward contract liabilities. Since the contingent forward contract liability related to the third closing was fully settled in the same month following the execution of the amendment, the Company recorded no related fair value remeasurements in the consolidated statements of operations. The Company issued Offer Notices to certain of the Company’s management and members of the Board of Directors in March 2021 and April 2021. The Series E convertible preferred shares issued from the fourth closing included 1,147,577 shares to the Company’s management and 627,347 shares to members of the Board of Directors. The total issuance to the Company’s management includes 202,449 shares offered to the CEO in April 2021. The offer to employees in the fourth closing to participate in future Series E convertible preferred shares financing represent a fully vested, equity classified award. The award’s full fair value on each recipient’s grant date was recorded as share-based compensation, and the related contingent forward contract liability was derecognized. The Company revalued the contingent forward contract liability for the remaining participants and recorded $12.4 million and $454.5 million fair value remeasurement loss related to the contingent forward contract liability for the three and six months ended June 30, 2021, respectively. Final fair value of the contingent forward contract liability of $1.2 billion was reclassified into Series E convertible preferred shares upon the fourth closing in April 2021. There was no related outstanding contingent forward contract liability as of June 30, 2021. The fair value of the Series E convertible preferred share contingent forward contract liability for the third closing was determined using Forward Payoff. The Company’s inputs used in determining the fair value on the issuance date and settlement date, were as follows: Stock Price $ 36.45 Volatility 100 % Expected term 0.01 Years Risk-free rate 0.03 % The fair value of the Series E convertible preferred share contingent forward contract liability for the fourth closing was determined using Forward and an Option Payoff. The Company’s inputs used in determining the fair value on the issuance date were as follows: Fair value of Series E convertible preferred share $ 36.45 Volatility 100 % Expected term 0.11 Years Risk-free rate 0.03 % The fair value of the Series E convertible preferred share contingent forward contract liability for the fourth closing on closing date was determined as the difference between the Series E convertible preferred shares fair value and the purchase price. The Company estimated the fair value of each of the Series E convertible preferred shares on the settlement date by taking the closing price of CCIV’s Class A common stock on April 1, 2021 of $23.78 multiplied by the expected exchange ratio, and adjusting down by 5% discount for lack of marketability . | NOTE 6 — CONTINGENT FORWARD CONTRACTS As discussed in Note 5 “Convertible Notes,” in September 2018, the Company entered into a Securities Purchase Agreement with PIF. Along with the execution of the Securities Purchase Agreement, the Company granted PIF the right to purchase the Company’s Series D convertible preferred shares in future periods. The Company determined PIF’s right to participate in future Series D convertible preferred shares financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $18.6 million as a debt discount to the Convertible Notes issued in September 2018. For the detail of the Convertible Notes and interest expense reconciliation, refer to Note 5 “Convertible Notes.” In March 2020, the Company received $200.0 million in exchange for 31,201,245 shares of Series D convertible preferred shares as partial settlement of the Series D contingent forward contract liability and revalued the contingent forward contract liability to the then fair value of $36.4 million and reclassified $18.2 million of the contingent forward contracts liability into Series D convertible preferred shares. In June 2020, upon satisfaction of the second set of milestones (refer to Note 8 “Convertible Preferred Shares and Shareholders’ Deficit”), the Company received the remaining $200.0 million in exchange for 31,201,245 shares of Series D as final settlement of the Series D contingent forward contract liability and revalued the contingent forward contracts liability to the then fair value of $21.4 million and reclassified the liability into Series D convertible preferred shares. The Series D contingent forward contract liability incurred a total fair value loss of $8.7 million during the year ended December 31, 2020. As discussed in Note 8 “Convertible Preferred Shares and Shareholders’ Deficit”, in September 2020, along with the execution of the Securities Purchase Agreement, the Company granted Ayar Third Investment Company (“Ayar”) the right to purchase the Company’s additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred share financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $0.8 million into contingent forward contract liabilities. In December 2020, Ayar waived the Company’s remaining outstanding obligations, and the Company received $400.0 million as the final issuance of Series E convertible preferred shares. Upon the final settlement, the Company revalued the Series E contingent forward contracts to the then fair value of $110.5 million and reclassified the contingent forward contract liability into Series E convertible preferred shares. The Company recorded a loss of $109.7 million related to fair value remeasurements of the Series E contingent forward contracts during the year ended December 31, 2020. The Company’s inputs used in determining the fair value of Series D contingent forward contract liability on the issuance date were as follows: Effective date 9/20/2018 Coupon payment dates Semi-Annual Maturity date 03/20/2020 Initial term 1.5 Years Interest rate (coupon rate) 8.00 % Yield (market rate) 8.00 % Effective interest rate 2.47 % The Company’s inputs used in determining the fair value of Series D convertible preferred share contingent forward contract liability on the settlement date, were as follows: Settlement date 3/31/2020 6/30/2020 Expected term — — Contingent Series D convertible preferred shares fair value (per share) $ 6.99 $ 7.10 Present value factor 1.0000 1.0000 Estimated probability of satisfying milestones 100 % 100 % The Company’s inputs used in determining the fair value of Series E convertible preferred share contingent forward contract liability on the issuance date and settlement date, were as follows: Effective date 9/22/2020 12/31/2020 Expected term 0.25 Years — Contingent Series E convertible preferred shares fair value (per share) $ 7.92 $ 10.09 Present value factor 0.9999 1.0000 Estimated probability of satisfying milestones 95 % 100 % Fair value of the Series D and Series E contingent forward contracts on the issuance date are valued by a third party valuation firm using Probability-Weighted Expected Return Method (“PWERM”) framework, and the Option Pricing Method (“OPM”) to allocate the equity value in the scenarios where the Series D and Series E convertible preferred share additional tranche issuance milestones are satisfied. |
CONVERTIBLE PREFERRED SHARE WAR
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | ||
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | NOTE 6 — CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY In March and September 2017, in connection with the Long-Term Debt to Trinity, the Company issued two convertible preferred share warrants (the “Warrants”) to purchase a total of 585,022 shares of Series D convertible preferred shares, with an exercise price of $5.128 per share. The Warrants are exercisable for 10 years from the date of issuance and expire in 2027 or earlier upon the consummation of an initial public offering (“IPO”). The Company determined that these Warrants met the requirements for liability classification under ASC 480, Distinguishing Liabilities from Equity The fair value of the Warrants was approximately $0.4 million and $0.2 million at the time of issuance in March and September 2017, respectively, calculated using a Monte-Carlo simulation method under the income approach. The Warrants were recorded at fair value at issuance and are subsequently remeasured to fair value each reporting period with the changes recorded in the consolidated statements of operations. As of December 31, 2020, 585,022 shares of the Warrants were outstanding with a fair value of $5.06 per share, and aggregate fair value of $3.0 million. The Company’s assumptions used in determining the fair value of convertible preferred share warrants on December 31, 2020 are as follows: December 31, 2020 Volatility 50.00 % Expected term (in years) 0.5 – 1.5 Risk-free rate 0.09 – 0.12 % Expected dividend rate 0.00 % In February 2021, all the outstanding warrants were settled in its entirety at an exercise price of $5.13 per share for an aggregate purchase price of $3.0 million. Upon final settlement, the Company converted the warrant into $12.9 million Series D convertible preferred shares, and recorded $7.0 million loss related to fair value remeasurements of the warrants in the consolidated statements of operations for the six months ended June 30, 2021. The Company recorded $0.1 million loss related to fair value remeasurements of the warrants for the three and six months ended June 30, 2020. The fair value of the Series D preferred shares that was converted from warrant liability at settlement was estimated using the PWERM framework and considered the same three scenarios and probability for each of the three scenarios used to value our common shares: OPM scenario (20%), as-converted SPAC scenario (70%), and as-converted IPO scenario (10%). Under the OPM scenario, the fair value of Series D convertible preferred shares is a direct output of the model used for the equity valuation of the Company and reflects the present value. Under the as-converted SPAC scenario, the present value of the Series D convertible preferred shares is estimated using the pre-money equity value. Under the as-converted IPO scenario, the Company applies the market-based approach and determines the fair value based on the average revenue multiples derived from our peer group. | NOTE 7 — CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY In March and September 2017, in connection with the Long-Term Debt to Trinity, the Company issued two convertible preferred share warrants (the “Warrants”) to purchase a total of 585,023 shares of Series D convertible preferred shares, with an exercise price of $5.128 per share. The Warrants are exercisable for 10 years from the date of issuance and expire in 2027 or earlier upon the consummation of an initial public offering (“IPO”). The Company determined that these Warrants met the requirements for liability classification under ASC 480, Distinguishing Liabilities from Equity, due to the Warrants holders having a put-right and the Company having an obligation to settle the Warrants by transferring cash. The fair value of the Warrants was approximately $0.4 million and $0.2 million at the time of issuance in March and September 2017, respectively, calculated using a Monte-Carlo simulation method under the income approach. The Warrants were recorded at fair value at issuance and are subsequently remeasured to fair value each reporting period with the changes recorded in the consolidated statements of operations. As of December 31, 2020, and 2019, 585,023 shares of the Warrants were outstanding with a fair value of $10.17 The Company’s assumptions used in determining the fair value of convertible preferred share warrants at December 31, 2020, and 2019 are as follows: As of December 31, 2020 2019 Volatility 50.0 % 55.0 % Expected term (in years) 0.5 – 1.5 2.3 Risk-free rate 0.09 – 0.12 % 1.59 % Expected dividend rate 0.0 % 0.0 % |
CONVERTIBLE PREFERRED SHARES AN
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | ||
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | NOTE 7 — CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT Convertible Preferred Shares Convertible preferred shares are carried at its issuance price, net of issuance costs. In 2014 through June 30, 2021, the Company issued Series A, Series B, Series C, and Series D and Series E convertible preferred shares (“Series A,” “Series B,” “Series C,” “Series D,” “Series E,” respectively) (collectively, the “Convertible Preferred Shares”). In September 2018, concurrent with the execution of the Security Purchase Agreement with PIF, the Company entered into a Share Repurchase Agreement (the “Repurchase Agreement”) with Blitz Technology Hong Kong Co. Limited and LeSoar Holdings, Limited (the “Sellers”) to repurchase Series C convertible preferred shares. From September 2018 to December 31, 2019, the Company repurchased in aggregate Third Company Repurchase (Series C — August 2020) In August 2020, the Company entered into a Share Repurchase Agreement with the Sellers. Pursuant to the Share Repurchase Agreement, the Company agreed to repurchase 3,652,265 shares of Series C convertible preferred shares owned by the Sellers in August 2020 at a price of $2.70 per share for total of $9.9 million. The carrying value of the repurchased Series C convertible preferred shares is $20.4 million. As such, the Company recognized $10.5 million in additional paid-in capital under shareholder’s equity in the consolidated balance sheet as of December 31, 2020 related to the difference in fair value and carrying value of the Series C shares repurchased. Fourth Company Repurchase (Series C — December 2020) In December 2020, the Company entered into a Share Repurchase Agreement with Blitz Technology Hong Kong Co. Limited (“Blitz”). The Company agreed to repurchase 700,000 Series C convertible preferred shares from Blitz at a price of $3.20 per share, aggregating to $2.2 million. As the carrying amount of each share of Series C was $6.41 aggregating to $4.5 million in September 2020, the Company recognized $2.2 million as additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2020, related to the difference in fair value and carrying value of the Series C shares repurchased. Fifth Company Repurchase (Series B — December 2020) On December 22, 2020, the Company entered into an agreement with JAFCO Asia Technology Fund V (“JAFCO”) whereby the Company agreed to repurchase 1,333,333 Series B convertible preferred shares having a carrying value of $4.0 million, from JAFCO for a total consideration of $3.0 million. The agreement resulted in an extinguishment of the Series B convertible preferred shares and the Company recognized $1.0 million in additional paid-in capital being the difference in fair value of the consideration payable and the carrying value of the Series B convertible preferred shares. As of the date of extinguishment and as of December 31, 2020 the Series B convertible preferred shares subject to repurchase are mandatorily redeemable within 45 days of the agreement and accordingly have been reclassified to other accrued liabilities on the consolidated balance sheets. Series D Preferred Share Issuance In 2018, the Security Purchase Agreement with PIF granted PIF rights to purchase the Company’s Series D convertible shares at various tranches. The first tranche of $200.0 million is issuable upon the approval of the PIF’s equity investment into the Company by CFIUS (refer to Note 5 In April 2019, upon CFIUS’s approval of PIF’s equity investment into the Company, the Company received the first $200.0 million proceeds from PIF. In October 2019, the Company received additional $400.0 million upon achieving the first set of milestones. Together with the conversion of $272.0 million Convertible Notes and accrued interest, the Company issued 141,746,324 shares of Series D convertible preferred shares at a price of $6.15 per share, for net proceeds of approximately $872.0 million during the year ended December 31, 2019. In March 2020, the Company received $200.0 million of the remaining $400.0 million in proceeds from PIF and issued 31,201,245 shares of Series D in exchange. In June 2020 the Company successfully satisfied certain of the second set of milestones related to further development and enhancement in marketing, product, and administrative activities, and received a waiver from PIF for the remaining milestones. The Company received the remaining $200 million proceeds in exchange for 31,201,256 shares of Series D convertible preferred shares. See activities related to the PIF Convertible Notes and Series D convertible preferred share funding as below (in thousands): Conversion of Convertible Notes $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series D received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,564 Conversion of preferred stock warrant to Series D in February 2021 3,000 Reclassification of preferred stock warrant liability to Series D in February 2021 9,936 Total proceeds of Series D $ 1,324,485 Series E convertible preferred share Issuance In September 2020 the Company entered into an arrangement with Ayar to issue and sell Series E convertible preferred shares pursuant to a securities purchase agreement (the “SPAE”). Along with the execution of the SPAE, the Company granted Ayar the right to purchase additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred share financing to be freestanding, similar to a derivative in the form of contingent forward contracts, and recorded the initial valuation of $0.8 million as a contingent forward contract liability. The contingent forward contract terms were included within the SPAE, which dictated a price of $7.90 per share of Series E convertible preferred shares. The Company needed to satisfy two sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities for Ayar to provide funding under the SPAE. Immediately upon closing of the SPAE, the Company received the full first tranche of $500.0 million in funding in exchange for 63,265,327 Series E convertible preferred shares as the requirement for the first milestones were met prior to execution of the purchase agreement. Subsequently, the Company successfully satisfied certain of the second set of milestones and received a waiver from PIF for the remaining milestones; and on December 24, 2020, the investor provided $400.0 million of funding in exchange for 50,612,262 shares as the final issuance of Series E convertible preferred shares related to the second milestones. Upon final settlement, the Company re-valued the liability associated with the contingent forward contract to the then fair value of $110.5 million from a contingent liability of $0.8 million and derecognized the liability as the contract was settled in its entirety. The Company recognized the increase in fair value of $109.7 million in the consolidated statements of operations and reclassified the liability into convertible preferred shares on the Company’s consolidated balance sheets as of December 31, 2020. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 shares of Series E convertible preferred shares at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to enter into the fourth closing to purchase up to 8,977,769 shares of Series E convertible preferred share on a pro rata basis at $7.90 per share, aggregating to $71.0 million. In addition, the amendment allowed the Company to offer for purchase at the fourth closing at $7.90 per share, a number of Series E Preferred Shares to senior management employees, directors, consultants, advisors and/or contractors of the Company (“Additional Purchasers”). The aggregate number of Series E Preferred Shares sold at the third closing and fourth closing will not exceed 75.9 million shares (“Extension Amount”). Ayar committed to purchase the entire Extension Amount to the extent not subscribed by Eligible Holders or Additional Purchasers. In April 2021, the Company issued 25,306,130 Series E convertible preferred shares from the fourth closing at $7.90 per share for cash consideration of $200.0 million. The Company received $107.1 million of the entire cash consideration in March 2021, and the remaining $92.9 million in April 2021. The Company issued Offer Notices to certain of the Company’s management and members of the Board of Directors in March 2021 and April 2021. The Series E convertible preferred shares issued from the fourth closing included 1,147,577 shares to the Company’s management and 627,347 shares to members of the Board of Directors. The total issuance to the Company’s management includes 202,449 shares offered to the CEO in April 2021. The offer to employees to participate in a future Series E convertible preferred share financing represented a fully vested, equity classified award. The excess of the award’s fair value over the purchase price of $20.7 million and $123.6 million on each recipient’s grant date during the three months and six months ended June 30, 2021 was recorded as share-based compensation. Along with the execution of Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred shares to 498,017,734 and 437,182,072 shares, respectively. As of June 30, 2021 and December 31, 2020, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of June 30, 2021 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 8,000,000 8,000,000 23,740 3.00 3.00 24,000 Series C 22,532,244 22,532,244 137,475 6.41 6.41 144,432 Series D 204,733,847 204,733,847 1,324,485 6.15 9.62 1,969,540 Series E 189,795,981 189,795,981 4,339,160 7.90 11.85 2,249,082 Total 437,182,072 437,182,072 $ 5,836,785 $ 4,399,174 As of December 31, 2020 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 * As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. The significant rights and preferences of the outstanding convertible preferred shares are as follows: Dividends — Liquidation Preference — to the amounts which would be payable in respect of the Series E and Series D convertible preferred shares held by them upon such distribution if all amounts payable on or with respect to said shares were paid in full. Upon completion of the full distribution required above, the remaining assets of the Company available for distribution to members shall be distributed pari passu among the holders of common shares pro rata based on the number of the common shares held by each member. Voting Rights — Conversion — Series B Series C Series D Series E Antidilution Adjustment — Common Shares No dividends other than those payable solely in common shares shall be paid on any common share, unless and until (i) the dividends are paid on each outstanding share of convertible preferred share and (ii) a dividend is paid with respect to all outstanding convertible preferred shares in an amount equal to or greater than the aggregate amount of dividends, which would be payable on each convertible preferred share, if immediately prior to such payment on common shares, it had been converted into common shares. Common Share Reserved for Issuance The Company’s common shares reserved for future issuances as of June 30, 2021 and December 31, 2020, are as follows: June 30, December 31, 2021 2020 Convertible preferred shares outstanding 437,182,072 362,011,991 Share options outstanding 26,099,336 26,730,453 Restricted stock unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Shares available for future grants 4,469,725 3,981,178 Total common shares reserved 483,514,731 393,308,644 | NOTE 8 — CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT Convertible Preferred Shares Convertible preferred shares are carried at its issuance price, net of issuance costs. In 2014 through 2020, the Company issued Series A, Series B, Series C, and Series D and Series E convertible preferred shares (“Series A,” “Series B,” “Series C,” “Series D,” “Series E,” respectively) (collectively, the “Convertible Preferred Shares”). In September 2018, concurrent with the execution of the Security Purchase Agreement with PIF, the Company entered into a Share Repurchase Agreement (the “Repurchase Agreement”) with Blitz Technology Hong Kong Co. Limited and LeSoar Holdings, Limited (the “Sellers”) to repurchase Series C convertible preferred shares as follows: First Company Repurchase Concurrent with the execution of the Security Purchase Agreement with PIF, $10.0 million of the proceeds from the issuance of the Convertible Notes were utilized to repurchase from the Sellers 714,286 shares of Series C at $14.00 per share. As the carrying amount of each share of Series C was $6.41 with an aggregate carrying amount of Series C repurchased at $4.6 million, the Company recognized $5.4 million as a reduction of additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2018, related to the excess fair value paid over carrying amount. Second Company Repurchase The Company agreed to repurchase 4,642,857 shares of Series C from the Sellers at a price equal to $14.00 per share, aggregating to $65.0 million on a date that is no later than 6 months from April 2019 (subject to contingencies defined within the Security Purchase Agreement with PIF) of the Series D Preferred Financing. The Repurchase Agreement substantially modified the terms of the Series C shares subject to repurchase and constitutes an extinguishment. The Company used the put option pricing model to compute the fair value of the contingent ‘Second Company Repurchase’ feature (“contingent repurchase feature”) and applied a 95% probability of successfully achieving the contingencies. Fair value of the contingent repurchase feature was $10.03 per share. The key inputs used in determining the fair value of the contingent repurchase feature as of the extinguishment date in September 2018, are as follows: Effective date 9/30/2018 Current price $ 3.28 Exercise price $ 14.0 Initial term 0.5 Years Volatility 55.00 % Risk free rate 2.36 % Dividend yield 0.00 % The fair value of the Series C preferred shares prior to extinguishment was $3.28 per share and was computed based on the Probability-Weighted Expected Return Method (PWERM) framework, using the Option Pricing Method (OPM) to allocate the equity value in the scenarios where CFIUS approval is received. The range of inputs for the various scenarios used in determining the fair value of the Series C convertible preferred shares using OPM as of the extinguishment date in September 2018, is as follows: Price per share $ 5.45 – 6.41 Term 1.7 – 2.4 Years Volatility 55.00 % Risk free rate 2.71% – 2.81% The fair value of the Series C preferred shares after the extinguishment was determined as $13.31 per share and was computed as the sum of the fair value of Series C of $3.28 per share as of the extinguishment date and the fair value of the contingent repurchase feature of $10.03 per share. As the carrying amount of each share of Series C was $6.41 in September 2018 with an aggregate carrying amount of Series C shares extinguished at $32.0 million, the Company recognized $9.4 million as a reduction of additional paid-in capital and the remaining $22.6 million as an increase to accumulated deficit under shareholders’ equity in the consolidated balance sheet as of December 31, 2018 as the Company did not have sufficient additional paid-in capital as of the extinguishment date to offset the excess of the fair value over the carrying amount. In June 2019, the Company and the Sellers amended and restated the September 2018 Repurchase Agreement related to the Second Company Repurchase. Pursuant to the terms, the Company repurchased 3,571,429 shares of Series C at $14.00 per share and the remaining 1,071,428 shares subject to the Second Company Repurchase were extinguished and the Company was released of any and all obligation to purchase any shares in excess of the 3,571,429 subject to redemption. As the carrying amount of each share of Series C was $13.31 in June 2019 and the total carrying amount of Series C repurchased was $47.5 million, the Company recognized $2.5 million as additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2019, related to the excess of fair value paid over carrying amount. The carrying amount of 1,071,428 shares extinguished in June 2019 was $14.3 million and the fair value was $3.60 per share, the Company recognized $10.4 million as an increase to additional paid in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2019, related to the difference between fair value after extinguishment and carrying amount. The fair value of the Series C preferred shares after extinguishment in June 2019 was $3.60 per share and was computed based on the PWERM framework, using the OPM to allocate the equity value in the scenarios where CFIUS approval is received and the Current Value Method or CVM to allocate the equity value in the scenario where CFIUS approval is not received. The range of inputs for the various scenarios used in determining the fair value of the Series C convertible preferred shares using OPM as of the extinguishment date, in June 2019, was as follows: Price per share $ 6.41 Term 1.7 – 2.3 Years Volatility 55.00 % Risk free rate 1.59% – 2.71% Third Company Repurchase (Series C — August 2020) In August 2020, the Company entered into a Share Repurchase Agreement with the Sellers. Pursuant to the Share Repurchase Agreement, the Company agreed to repurchase 3,652,265 shares of Series C convertible preferred shares owned by the Sellers in August 2020 at a price of $2.70 per share for total of $9.9 million. The carrying value of the repurchased Series C convertible preferred shares is $20.4 million. As such, the Company recognized $10.5 million in additional paid-in capital under shareholder’s equity in the consolidated balance sheet as of December 31, 2020 related to the difference in fair value and carrying value of the Series C shares repurchased. Fourth Company Repurchase (Series C — December 2020) In December 2020, the Company entered into a Share Repurchase Agreement with Blitz Technology Hong Kong Co. Limited (“Blitz”). The Company agreed to repurchase 700,000 Series C convertible preferred shares from Blitz at a price of $3.20 per share, aggregating to $2.2 million. As the carrying amount of each share of Series C was $6.41 aggregating to $4.5 million in September 2020, the Company recognized $2.2 million as additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2020, related to the difference in fair value and carrying value of the Series C shares repurchased. Fifth Company Repurchase (Series B — December 2020) On December 22, 2020, the Company entered into an agreement with JAFCO Asia Technology Fund V (“JAFCO”) whereby the Company agreed to repurchase 1,333,333 Series B convertible preferred shares having a carrying value of $4.0 million, from JAFCO for a total consideration of $3.0 million. The agreement resulted in an extinguishment of the Series B convertible preferred shares and the Company recognized $1.0 million in additional paid-in capital being the difference in fair value of the consideration payable and the carrying value of the Series B convertible preferred shares. As of the date of extinguishment and as of December 31, 2020 the Series B convertible preferred shares subject to repurchase are mandatorily redeemable within 45 days of the agreement and accordingly have been reclassified to other accrued liabilities on the consolidated balance sheets. Series D Preferred Share Issuance In 2018, the Security Purchase Agreement with PIF granted PIF rights to purchase the Company’s Series D convertible shares at various tranches. The first tranche of $200.0 million is issuable upon the approval of the PIF’s equity investment into the Company by CFIUS (refer to Note 5 In April 2019, upon CFIUS’s approval of PIF’s equity investment into the Company, the Company received the first $200.0 million proceeds from PIF. In October 2019, the Company received additional $400.0 million upon achieving the first set of milestones. Together with the conversion of $272.0 million Convertible Notes and accrued interest, the Company issued 141,746,324 shares of Series D at a price of $6.15 per share, for net proceeds of approximately $872.0 million during the year ended December 31, 2019. The Company recorded $10.2 million of share issuance costs for Series D as noncurrent assets in the consolidated balance sheet as of December 31, 2018 and subsequently reclassified this amount to contra convertible preferred shares when Series D was funded in 2019. An additional $0.3 million of Series D share issuance cost was incurred in 2019 and was recorded as an issuance cost in additional paid in capital to offset the proceeds from Series D. In March 2020, the Company received $200.0 million of the remaining $400.0 million in proceeds from PIF and issued 31,201,245 shares of Series D in exchange. In June 2020 the Company successfully satisfied certain of the second set of milestones related to further development and enhancement in marketing, product, and administrative activities, and received a waiver from PIF for the remaining milestones. The Company received the remaining $200 million proceeds in exchange for 31,201,245 See activities related to the PIF Convertible Notes and Series D convertible preferred share funding as below (in thousands): Conversion of Convertible Notes (Note 5) $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,563 Total proceeds of Series D $ 1,311,548 Series E convertible preferred share Issuance On September 21, 2020 the Company entered into an arrangement with Ayar to issue and sell Series E convertible preferred shares pursuant to a securities purchase agreement (the “SPAE”). Along with the execution of the SPAE, the Company granted Ayar the right to purchase additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred share financing to be freestanding, similar to a derivative in the form of contingent forward contracts, and recorded the initial valuation of $0.8 million as a contingent forward contract liability. The contingent forward contract terms were included within the SPAE, which dictated a price of $7.90 per share of Series E convertible preferred. The Company needed to satisfy two sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities for Ayar to provide funding under the SPAE. Immediately upon closing of the SPAE, the Company received the full first tranche of $500.0 million in funding in exchange for 63,265,327 Series E convertible preferred shares as the requirement for the first milestones were met prior to execution of the purchase agreement. Subsequently, the Company successfully satisfied certain of the second set of milestones and received a waiver from PIF for the remaining milestones; and on December 24, 2020, the investor provided $400.0 million of funding in exchange for 50,612,262 shares as the final issuance of Series E convertible preferred shares related to the second milestones. Upon final settlement, the Company re-valued the liability associated with the contingent forward contract to the then fair value of $110.5 million from a contingent liability of $0.8 million and derecognized the liability as the contract was settled in its entirety. The Company recognized the increase in fair value of $109.7 million in the consolidated statements of operations and reclassified the liability into convertible preferred shares on the Company’s consolidated balance sheets as of December 31, 2020. As of December 31, 2020, and 2019, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of December 31, 2020 Conversion Price Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 *As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. As of December 31, 2019 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 9,333,333 9,333,333 27,740 3.00 3.00 28,000 Series C 31,170,225 26,884,509 162,360 6.41 6.41 172,331 Series D 234,009,360 141,746,324 871,985 6.15 9.62 1,362,891 Total 286,632,918 190,084,166 $ 1,074,010 $ 1,575,342 The significant rights and preferences of the outstanding convertible preferred shares are as follows: Dividends — Liquidation Preference — Upon completion of the full distribution required above, the remaining assets of the Company available for distribution to members shall be distributed pari passu among the holders of common shares pro rata based on the number of the common shares held by each member. Voting Rights — Conversion — one (1) outstanding Antidilution Adjustment — Common Shares No dividends other than those payable solely in common shares shall be paid on any common share, unless and until (i) the dividends are paid on each outstanding share of convertible preferred share and (ii) a dividend is paid with respect to all outstanding convertible preferred shares in an amount equal to or greater than the aggregate amount of dividends, which would be payable on each convertible preferred share, if immediately prior to such payment on common shares, it had been converted into common shares. Common Shares Reserved for Issuance The Company’s common shares reserved for future issuances as of December 31, 2020 and 2019, are as follows: As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Shares available for future grants 3,981,178 7,336,862 Total common shares reserved 393,308,645 224,218,549 |
SHARES-BASED AWARDS
SHARES-BASED AWARDS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SHARES-BASED AWARDS | ||
SHARES-BASED AWARDS | NOTE 8 — SHARES-BASED AWARDS Share Incentive Plans and Share Option Grants to Employees and Directors In 2009, the Company adopted the 2009 Share Plan (the “2009 Plan”). In 2014, in connection with the Series C convertible preferred share financing, the Company adopted the 2014 Share Plan (the “2014 Plan”). Both the 2009 Plan and the 2014 Plan provide for the granting of incentive and non-statutory share options to directors, officers, employees, and consultants. Under the 2009 Plan and the 2014 Plan, the Company may grant options to purchase up to 5,000,000 and 31,884,190 common shares, respectively, at prices not less than the fair market value (FMV) at the date of grant, with limited exceptions. These options generally expire 10 years from the date of grant and are exercisable when the options vest. Incentive share options and non-statutory options generally vest over four years, the majority of which vest at a rate of 25% on the first anniversary of the grant date, with the remainder vesting ratably each month over the next three years. In January 2021, the Company’s Board of Directors approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan replaced the 2009 Plan and 2014 Plan. 3,981,178 shares reserved for future issuance under 2009 Plan and 2014 Plan were removed and added to share reserve under the 2021 Plan. If outstanding share awards issued under the 2009 Plan and 2014 Plan 1) expire or terminate for any reason prior to exercise or settlement, 2) are forfeited, canceled or otherwise returned to the Company because of the failure to meet vesting conditions, or 3) are reacquired, withheld to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a share award (collectively, the “Returning Shares”), will be added back to the 2021 Plan. The 2021 Plan provides for the grant of incentive share options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of non-statutory share options, restricted shares, Restricted Stock Units (RSU), share appreciation rights, performance based awards and cash based awards to the Company’s employees, directors, and consultants and its parent and subsidiary corporations’ employees and consultants. The 2021 Plan became effective in January 2021. 16,616,225 shares were authorized to issue under the 2021 Plan. In January 2021, the Company also increased the number of shares reserved for issuance under the 2014 Share Plan by 2,033,333 shares which was transferred to the 2021 Plan. As of June 30, 2021, 4,469,725 shares were remaining under the 2021 Plan. No shares were A summary of share option activity under the 2009 Plan, the 2014 Plan, and the 2021 Plan is as follows: Outstanding Options Weighted- Weighted Average Intrinsic Average Remaining Value Number of Exercise Contractual (in Options Price Term thousands) Balance – December 31, 2020 26,730,453 $ 2.21 7.8 $ 118,155 Options granted 3,177,756 7.51 Options exercised (3,028,530) 1.74 Options canceled (780,343) 3.13 Balance – June 30, 2021 26,099,336 $ 1.80 8.5 $ 2,491,171 Options vested and exercisable June 30, 2021 14,842,155 $ 1.88 6.6 $ 883,724 Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of common shares. The aggregate intrinsic value of options exercised was approximately $102.5 million for the six months ended June 30, 2021,and The total fair value of share options granted during the six months ended June 30, 2021 and 2020, was approximately $23.9 million and $10.1 million, respectively, which is being recognized over the respective vesting periods. The total fair value of share options vested during the six months ended June 30, 2021 and 2020, was approximately $3.1 million and $1.8 million, respectively. The unamortized share-based compensation for the six months ended June 30, 2021 was approximately $817.2 million, and weighted average remaining amortization period as of June 30, 2021 was 3.9 years. The Black-Scholes Model used to value share options incorporates the following assumptions: Volatility — Risk-Free Interest Rate — Expected Life — Dividend Yield — The Company estimates the fair value of the options utilizing the Black-Scholes option pricing model, which is dependent upon several variables, such as the expected option term, expected volatility of the Company’s share price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of share options granted to employees and directors that are subject to ASC 718, Compensation — Stock Compensation A summary of the assumptions the Company utilized to record compensation expense for share options granted during the three and six months ended June 30, 2021 and 2020, is as follows: Six Months Ended June 30, 2021 2020 Weighted average volatility 41.9 % 42.7 % Expected term (in years) 5.9 6.0 Risk-free interest rate 0.6 % 1.1 % Expected dividends — — A summary of RSU award activity under the 2021 Plan is as follow: Restricted Stock Units Weighted- Performance- Average Time-Based Based Total Grant-Date Shares Shares Shares Fair Value Nonvested balance as of December 31, 2020 — — — $ — Granted 9,729,078 6,060,670 15,789,748 50.71 Cancelled/Forfeited (26,150) — (26,150) 56.06 Nonvested balance as of June 30, 2021 9,702,928 6,060,670 15,763,598 $ 50.70 Time-based RSUs vest based on a performance condition and a service condition. The performance condition will be satisfied upon the Closing of the merger with CCIV, and service condition will be met generally over 4.0 years. The Company granted 5,232,507 shares of the time-based RSUs to the CEO. Subject to the CEO’s continued employment on each vesting date, the CEO’s time-based RSUs will vest in sixteen equal quarterly installments beginning on the first Vesting date that is at least two months following the Closing. The service condition for 25% of the Company’s non-CEO RSUs will be satisfied 375 days after the Closing. The remaining RSUs will be satisfied in equal quarterly installments thereafter, subject to continuous employment. The fair value of these award is estimated on the date of grant based on the market price of the CCIV’s stock times the actual exchange ratio on the Closing, discounted for lack of marketability. All performance-based RSUs are granted to the CEO. The CEO performance RSUs will vest subject to the performance and market conditions. The performance condition will be satisfied upon the Closing of the merger. The market conditions will be satisfied and vest in five tranches based on the achievement of market capitalization goals applicable to each tranche over any six-month period subject to the CEO’s continued employment through the applicable vesting date. Any CEO performance RSUs that have not vested within five years after the Closing of the merger will be forfeited. The fair value of these award is estimated on the grant date using Monte Carlo simulation model, and used the following assumptions for the six months ended June 30, 2021: Six Months Ended June 30, 2021 Weighted average volatility 60.0 % Expected term (in years) 5.0 Risk-free interest rate 0.9 % Expected dividends — The Company recognizes compensation expense on a graded vesting schedule over the requisite vesting period for the time-based award. Stock-based compensation expense is recognized when the relevant performance condition is considered probable of achievement for the performance-based award. For the six months ended June 30, 2021, no compensation expense was recognized as the different vesting conditions were not met, and the performance condition cannot be deemed probable until the Closing occurs. Total employee and nonemployee share-based compensation expense, including that related to the extended exercise terms for senior management and consultants for the three and six months ended June 30, 2021 and 2020, is classified in the consolidated statements of operations as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Research and development $ 13,539 $ 552 $ 26,703 $ 1,393 Selling, general and administrative 10,910 458 102,541 588 Total $ 24,449 $ 1,010 $ 129,244 $ 1,981 Total share-based compensation expense for the three and six months periods includes the $20.7 million and $123.6 million share-based compensation expense, respectively, related to the Series E convertible preferred shares issuance in March 2021 and April 2021. Refer to Note 5 “Contingent Forward Contracts” and Note 7 “Convertible Preferred Shares and Shareholders Deficit” for further detail. | NOTE 9 — SHARES-BASED AWARDS Share Incentive Plans and Share Option Grants to Employees and Directors In 2009, the Company adopted the 2009 Share Plan (the “2009 Plan”). In 2014, in connection with the Series C convertible preferred share financing, the Company adopted the 2014 Share Plan (the “2014 Plan”). Both the 2009 Plan and the 2014 Plan provide for the granting of incentive and non-statutory share options to directors, officers, employees, and consultants. Under the 2009 Plan and the 2014 Plan, the Company may grant options to purchase up to 5,000,000 and 31,884,190 common shares, respectively, at prices not less than the fair market value (FMV) at the date of grant, with limited exceptions. These options generally expire 10 years from the date of grant and are exercisable when the options vest. Incentive share options and non-statutory options generally vest over four years, the majority of which vest at a rate of 25% on the first anniversary of the grant date, with the remainder As of December 31, 2020, nil and 3,981,178 shares were remaining under the 2009 Plan and the 2014 Plan, respectively, for future grant. As of December 31, 2019, nil and 7,336,862 shares were remaining under the 2009 Plan and the 2014 Plan, respectively, for future grant. A summary of share option activity under the 2009 Plan and the 2014 Plan is as follows: Outstanding Options Weighted- Weighted Average Average Remaining Intrinsic Shares Available for Number of Exercise Contractual Value (in Grant Options Price Term thousands) Balance – January 1, 2019 19,257,865 14,716,256 $ 1.06 6.37 $ 12,341 Options granted (12,943,015) 12,943,015 2.19 Options exercised — (424,761) 1.22 Options canceled 1,022,012 (1,022,012) 1.92 Balance – December 31, 2019 7,336,862 26,212,498 $ 1.58 6.27 $ 21,236 Options granted (9,009,210) 9,009,210 3.06 Options exercised — (2,837,729) 1.15 Options canceled 5,653,526 (5,653,526) 1.17 Balance – December 31, 2020 3,981,178 26,730,453 $ 2.21 7.79 $ 118,155 Options vested and exercisable December 31, 2020 26,111,472 $ 1.75 6.75 $ 75,944 Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of common shares. The aggregate intrinsic value of options exercised was approximately $8.3 million and $0.4 million in 2020 and 2019, respectively. The total fair value of share options granted during the years ended December 31, 2020 and 2019, was approximately $14.8 million and $13.9 million, respectively, which is being recognized over the respective vesting periods. The total fair value of share options vested during the years ended December 31, 2020 and 2019, was approximately $3.9 million and $6.9 million, respectively. The unamortized share-based compensation for the years ended December 31, 2020 and 2019, was approximately $14.9 million and $6.6 million, and weighted average remaining amortization period as of December 31, 2020 and 2019 was 3.0 years and 2.7 years, respectively. The Black-Scholes Model used to value share options incorporates the following assumptions: Volatility — Risk-Free Interest Rate — Expected Life — Dividend Yield — The Company estimates the fair value of the options utilizing the Black-Scholes option pricing model, which is dependent upon several variables, such as the expected option term, expected volatility of the Company’s share price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of share options granted to employees and directors that are subject to ASC 718, Compensation — Stock Compensation, requirements. These amounts are estimates and, thus, may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. A summary of the assumptions the Company utilized to record compensation expense for share options granted during the years ended December 31, 2020 and 2019, is as follows: Year Ended December 31, 2020 2019 Weighted average volatility 58.98 % 42.77 % Expected term (in years) 5.9 5.5 Risk-free interest rate 0.75 % 2.11 % Expected dividends — — The Company recognizes compensation on a straight-line basis over the requisite vesting period for each award. During the year ended December 31, 2019, the Company granted 6.7 million options to senior management with an extended post-termination exercise term. The extended option exercise period for those options is the earliest of option expiration date, the first anniversary of a qualified IPO, or closing of a change of control. The Company also used the Black-Scholes option-pricing model to value the options with extended exercise term resulting in grant date fair value of $2.7 million in 2019, which were also expensed over the requisite vesting period for each award. In accordance with ASC 718-10-20, the change of control and IPO events are considered performance conditions and are not deemed probable until they occur, therefore the Company determined the expected life of the awards was 10 years, or equal to the contractual life, for use in the Black Scholes model. No such options were granted in 2020. Following are the assumptions used in the valuation of these options: For the Year Ended December 31, 2019 Volatility 47.5 % Expected terms (in years) 10 Risk-free interest rate 2.59 % Expected dividends — Total employee and nonemployee share-based compensation expense, including that related to the extended exercise terms for senior management and consultants for the years ended December 31, 2020 and 2019, is classified in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2020 2019 Cost of revenue $ 213 $ 443 Research and development 3,724 4,770 Selling, general and administrative 677 2,506 Total $ 4,614 $ 7,719 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | NOTE 10 — COMMITMENTS AND CONTINGENCIES Contractual Obligations As of June 30, 2021, and December 31, 2020, the Company had $79.2 million and $406.1 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of June 30, 2021, and December 31, 2020. The Company entered into non-cancellable purchase commitment to purchase battery cells over the next 3 years with various vendors. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of June 30, 2021 is set as follows (in thousands): Minimum Purchase Years ended December 31, Commitment 2021 (remainder of the year) $ 104,370 2022 202,400 2023 202,400 Total $ 509,170 In recognition of the CEO’s efforts on the contemplated merger, the board of directors approved a $2 million transaction bonus payable to the CEO, subject to: (1) the Closing of the merger, (ii) the CEO’s continued employment through the closing date and (iii) the CEO’s not giving notice of his intent to resign on or before the closing date. The transaction bonus was paid to the CEO on the first regularly scheduled payroll date after the Closing. Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. There is no material pending or threatened Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to letters of credit and surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $24.6 million and $15.5 million as of June 30, 2021 and December 31, 2020, respectively, for which no liabilities are recorded on the consolidated balance sheets. | NOTE 10 — COMMITMENTS AND CONTINGENCIES Operating Leases and Other Contractual Obligations The Company has various non-cancelable operating leases for its office space, laboratory, and manufacturing and retail facilities. These leases expire at various times through 2030. Certain lease agreements contain renewal options, rent abatement, and escalation clauses. The Company recognizes rent expense on a straight-line basis over the lease term, commencing when the Company takes possession of the property. Certain of the Company’s office leases entitle the Company to receive a tenant allowance from the landlord. The Company records tenant allowance as a deferred rent credit, which the Company amortizes on a straight-line basis, as a reduction of rent expense, over the term of the underlying lease. In 2020 and in 2019, the Company invoked the right for additional tenant improvements of $4.7 million and $8.6 million, respectively, allowed in the original contracts or amended agreements for the corporate headquarters in Newark, California. As of December 31, 2020, and 2019, the Company had $406.1 million and $162.0 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of December 31, 2020, and 2019. In September 2017, the Company entered into an over 10-year lease on an approximately 127,000 square-foot headquarters building, and the lease will expire on September 30, 2030 after the amendment being signed. The Company has committed to pay approximately $0.3 million per month for the building, with 3% annual increases. In September 2018, the Company amended that lease to also include an approximately 300,000 square-foot additional building within the same campus location and extend the term to 12 years, and the lease will expire on September 30, 2030. Under the lease agreement, the Company has committed to pay approximately $0.6 million per month for the additional building, with 3% annual increases on the lease. As of December 31, 2020, and 2019, the landlord provided a tenant improvement allowance for approximately $29.0 million and $24.3 million, respectively, for leasehold improvements in connection with the cost of construction of the initial alterations within the premises. In December 2018, the Company entered into a four-year lease for approximately 500 acres of land in Arizona, on which the Company intends to construct an Arizona plant. Under the lease agreement, the Company is committed to pay $1.8 million per year during the lease term. This rent is paid in arrears. Pursuant to the terms of the lease agreement , the Company has the exclusive option to purchase the Premises (land together with any structures or improvements presently situated thereon or to be constructed thereon) at any time prior to expiration of the lease term for the purchase price to be computed in accordance with the terms and conditions as set forth in the lease agreement. In June 2019, the Company entered into a new lease agreement for a retail location in Beverly Hills, California. The lease commenced on September 1, 2019 and will expire on August 31, 2029. Under the lease agreement, the Company will pay base rent of $0.1 million per month. Base rent is subject to a 3% annual escalation clause during the lease term. From January 2020 to September 2020, the Company entered into nine lease agreements for retail locations in Arizona, California, Florida, New York, and Virginia, with lease expiration dates ranging from March 2025 through December 2032. Base rent for these leases ranges from $0.1 million to $0.4 million per annum, with certain leases having 3% annual base rent escalation clauses during the lease terms. Future minimum payments as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 25,490 2022 28,837 2023 27,633 2024 28,207 2025 27,474 Thereafter 116,155 Total $ 253,796 Rent expense incurred under operating leases was approximately $19.6 million and $18.3 million, for the years ended December 31, 2020 and 2019, respectively. During the year ended 2020, the Company entered into a non-cancellable purchase commitment with a large battery cell supplier to purchase battery cells over the next three years. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of December 31, 2020 is set as follows (in thousands): Minimum Purchase Commitment Year Ending December 31: 2021 $ 101,200 2022 202,400 2023 202,400 Total $ 506,000 Capital Lease During the years ended December 31, 2019 and 2020, the Company acquired equipment under capital lease agreements with an initial term of 36 months. Future minimum payments for the capital lease as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 1,729 2022 1,547 2023 1,174 2024 9 Total capital lease obligations 4,459 Less amounts representing interest (1,202) Capital lease obligations, net of interest $ 3,257 Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of its breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $5.0 |
INCOME TAXES
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAX | ||
INCOME TAXES | NOTE 11 — INCOME TAXES The Company’s provision from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, and tax law developments. The Company’s estimated effective tax rate for the year differs from the U.S. statutory rate of 21% because the entity is in a year-to-date and forecasted loss position; therefore, any taxes reported are due to foreign income taxes and state minimum taxes. The Company recorded an income tax provision (benefit) of $0.0 million for the three and six months ended June 30, 2021 , as compared to $(0.0) million and $(0.1) million for the same periods in the prior year. This resulted in an effective tax rate of (0.0)% for the three and six months ended June 30, 2021, and the same periods prior year. The change is primarily due to foreign income taxes, state income taxes, and a decrease in pre-tax income. As of June 30, 2021, and December 31, 2020, the Company had unrecognized tax benefits of $65.4 million and $42.9 million, of which $2.6 million, if recognized for both periods, would favorably impact the Company’s effective tax rate. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months. On June 29, 2020, the California governor signed into law the 2020 Budget Act, which temporarily suspends the utilization of net operating losses and limits the utilization of the research | NOTE 11 — INCOME TAXES Income taxes have been provided in accordance with ASC 740. The components of loss before income taxes for the years ended December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Loss subject to domestic income taxes $ (719,636) $ (277,244) Loss subject to foreign income taxes 68 (90) $ (719,568) $ (277,334) The Company recorded an income tax provision/(benefit) of $(0.19) million and $0.03 million in connection with its domestic state and foreign subsidiaries for the years ended December 31, 2020 and 2019, respectively, as follows (in thousands): 2020 2019 Current Federal $ — $ — State 5 2 Foreign (193) 23 Total current tax expense (benefit) $ (188) $ 25 Deferred Federal $ — $ — State — — Foreign — — Total deferred tax expense (benefit) $ — $ — Total income tax expense (benefit) $ (188) $ 25 The amount of income tax expense (benefit) differs from the expected benefit due to the state income taxes, foreign income taxes, and the impact of the valuation allowance. On December 22, 2017, the US government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the US tax code, including, but not limited to, (1) reducing the US federal corporate tax rate from 35% to 21%; (2) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (3) creating a new limitation on deductible interest expense; (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (5) bonus depreciation that will allow for full expensing of qualified property; (6) establishes new rules with respect to the taxation of certain international transactions, including the income of foreign subsidiaries; and (7) limitations on the deductibility of certain executive compensation. The Tax Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. The Company’s foreign income is in a net loss position and is immaterial to the provision for income taxes, thus no GILTI has been accrued for either 2019 or 2020. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes as of December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 265,799 $ 139,899 Tax credit carryforwards 40,454 18,076 Share-based compensation expense 2,554 4,191 Depreciation 499 210 Accrued compensation and vacation 2,498 699 Interest 489 409 Tenant improvement allowance 8,777 7,757 Accruals and reserves 39,502 3,577 Other 1 — Total deferred tax assets 360,573 174,818 Valuation allowance (360,573) (174,818) Net deferred tax assets — — Net deferred tax assets (liabilities) $ — $ — As of December 31, 2020, and 2019, the Company has no undistributed earnings from its foreign subsidiaries. Accordingly, no deferred tax liability has been established. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized in a particular tax jurisdiction. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. Judgment must be used in considering the relative impact of negative and positive evidence. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and the accumulated deficit, as of December 31, 2020 and 2019, the Company provided a full valuation allowance against its US and state deferred tax assets. The valuation allowance for deferred tax assets was $360.6 million and $174.8 million, as of December 31, 2020 and 2019, respectively. The valuation allowance on our net deferred taxes increased by $185.8 million and increased by $80.7 million during the years ended December 31, 2020 and 2019, respectively. The Company had federal and state net operating loss carryforwards of approximately $960.7 million and $716.1 million, respectively, as of December 31, 2020, which will begin to expire at various dates beginning in 2028, if not utilized. The Company also had federal and state tax research and development tax credit carryforwards of approximately $44.8 million and $36.1 million, respectively. The federal research and development tax credit carryforwards will expire at various dates beginning in 2034, if not utilized. The state research and development tax credit carryforwards do not expire. The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % Share-based compensation (0.2) (0.2) Mark-to-market adjustment (3.4) (1.1) Nondeductible expenses (0.1) (0.8) Tax credits 2.8 1.9 Change in valuation allowance (20.1) (20.8) Provision for income taxes — % — % The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses and certain credits in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses and certain credits may be limited as prescribed under Internal Revenue Code Section 382, which provide for limitations on net operating losses carryforwards and certain built in losses following ownership changes, and Section 383, which provides for special limitations on certain excess credits, etc. (collectively, “IRC Section 382”). Utilization of the carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions, resulting in a reduction in the gross deferral tax assets before considering the valuation allowance. The Company files US, state, and foreign income tax returns with varying statutes of limitations. The federal, state, and foreign returns statute of limitations remains open for tax years from 2008 and thereafter. There are currently no income tax audits underway by US, state, or foreign tax authorities. Uncertain Tax Positions As of December 31, 2020, and 2019, the total amount of unrecognized tax benefits was approximately $42.9 million and $20.6 million, respectively. The Company does not anticipate a significant change in the total amount of unrecognized tax benefits within the next 12 months. The following table summarizes the activity related to unrecognized tax benefits for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Unrecognized benefit – beginning of period $ 20,635 $ 11,647 Gross increases – prior-period tax positions 21 4 Gross decreases – prior-period tax positions (2) — Gross increases – current-period tax positions 22,382 8,995 Gross decrease – current-period tax positions — (11) Statute lapse (142) — Unrecognized benefit – end of period $ 42,894 $ 20,635 Related to the unrecognized tax benefits above, the Company recognized interest expense and penalty expense as part of income tax expenses in the consolidated statements of operations according to the following table (in thousands): Year Ended December 31, 2020 2019 Interest expense $ (45) $ 16 Penalty expense (20) 1 As of December 31, 2020, the Company has recognized a liability for interest expense and penalties of $60 thousand and $9 thousand, respectively, which is included within income tax liabilities in the consolidated balance sheet. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
NET LOSS PER SHARE | NOTE 12 — NET LOSS PER SHARE Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (261,726) $ (117,285) $ (1,009,678) $ (246,868) Deemed dividend related to the issuance of Series E convertible preferred shares — — (2,167,332) — Net loss attributable to common shareholders $ (261,726) $ (117,285) $ (3,177,010) $ (246,868) Weighted-average shares outstanding — basic and diluted 13,728,639 8,319,168 13,042,653 8,117,746 Net loss per share: Basic and diluted $ (19.06) $ (14.10) $ (243.59) $ (30.41) The following table sets forth the potential shares of common share as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive: As of June 30, 2021 2020 Convertible preferred shares outstanding 437,182,072 252,486,667 Share options outstanding 26,099,336 22,729,435 Restricted share unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Total 479,045,006 275,801,124 | NOTE 12 — NET LOSS PER SHARE Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2020 2019 Basic and diluted net loss per share Numerator: Net loss $ (719,380) $ (277,357) Deemed contribution related to repurchase of Series B convertible preferred shares 1,000 — Deemed contribution related to repurchase of Series C convertible preferred shares 12,784 7,935 Net loss attributable to common shareholders $ (705,596) $ (269,422) Denominator: Weighted-average shares outstanding – basic 9,389,540 7,789,421 Effect of dilutive potential common shares from share options, share awards and employee share purchase plan — — Weighted-average shares outstanding – diluted 9,389,540 7,789,421 Net loss per share: Basic $ (75.15) $ (34.59) Diluted $ (75.15) $ (34.59) The following table sets forth the potential common shares as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive: As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Total potential convertible securities to common shares 389,327,467 216,881,686 |
EMPLOYEE BENEFIT PLAN
EMPLOYEE BENEFIT PLAN | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | ||
EMPLOYEE BENEFIT PLAN | NOTE 13 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. The Company made no matching contribution to the 401(k) Plan for the six months ended June 30, 2021 and 2020. | NOTE 13 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. The Company made no matching contribution to the 401(k) Plan in 2020 and 2019. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2020 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | NOTE 14 — SEGMENT REPORTING The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | NOTE 14 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the three and six months ended June 30, 2021, the Company has evaluated subsequent events for both conditions existing and not existing on June 30, 2021, and concluded there were no subsequent events to recognize in the financial statements. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share (“Common Stock”), and warrants began trading on The Nasdaq Stock Market LLC under the symbols “LCID” and “LCIDW,” respectively. Immediately prior to the Closing, all of Lucid’s preferred shares (the “Lucid Preferred Shares”) then issued and outstanding were converted into Lucid’s common shares, par value $0.0001 per share (the “Lucid Common Shares”) in accordance with the terms of Lucid Group’s Memorandum and Articles of Association, such that each converted Lucid Preferred Share was no longer outstanding and ceased to exist, and each holder thereof thereafter ceased to have any rights with respect to such securities. At the date and time that the business combination became effective, each Lucid Common Share then issued and outstanding was automatically cancelled and the holders of Lucid Common Shares received 2.644 shares of Common Stock in exchange for each Lucid Common Share they held at such time, based on the Equity Value (as defined in the Merger Agreement) of $12.3 billion. The Equity Value equals (a) $11.8 billion plus (b) (i) all cash and cash equivalents of Lucid and its subsidiaries less (ii) all indebtedness for borrowed money of Lucid and its subsidiaries, in each case as of two business days prior to the Closing. The holders of the Lucid Common Shares were issued 1,193,226,511 shares of Common Stock at the Closing. Subsequent to June 30, 2021, the Company entered into new retail lease agreements for various locations. The leases commenced in and after July 2021 and will expire on or before June 2031 | NOTE 15 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the year ended December 31, 2020, the Company has evaluated subsequent events through March 19, 2021, the date the financial statements were available to be issued, for both conditions existing and not existing at December 31, 2020, and concluded there were no subsequent events to recognize in the financial statements. In January 2021, the Company’s board of directors approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan will replace the 2009 Plan and 2014 Plan. 3,981,178 shares reserved for future issuance under 2009 Plan and 2014 Plan will be removed and added to share reserve under the 2021 Plan. If outstanding share awards issued under the 2009 Plan and 2014 Plan 1) expire or terminate for any reason prior to exercise or settlement, 2) are forfeited, canceled or otherwise returned to the Company because of the failure to meet vesting conditions, or 3) are reacquired, withheld to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a share award (collectively, the “Returning Shares”), will be added back to the 2021 Plan. The 2021 Plan provides for the grant of incentive share options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory share options, restricted shares. Restricted Stock Units (RSUs), share appreciation rights, performance based awards and cash based awards to the Company’s employees, directors, and consultants and its parent and subsidiary corporations’ employees and consultants. The 2021 Plan became effective in January 2021. 32,076,334 shares were authorized to issue under the 2021 Plan. In February 2021, the Company entered into new lease agreements for retail locations in Manhasset, New York and in Chicago, Illinois. The leases commenced in February 2021 and will expire on or before January 31, 2031. Under the lease agreements, the Company will pay base rent from $0.5 million to $0.8 million annually. Base rent is subject to a 2.5% annual escalation clause during the lease term. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”) entered into September 2020 (refer to Note 7). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 Series E convertible preferred shares at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to purchase up to 8,977,769 Series E convertible preferred shares on a pro rata basis at $7.90 per share, aggregating to $71.0 million. The Company will issue the Offer Notice to all Eligible Holders two business days following the third closing, and all Eligible Holders have 14 calendar days (the “Exercise Period”) to notice the Company on the number of Series E convertible preferred shares they intend to purchase. Along with the execution of the Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred shares to 498,017,734 and 437,182,072 shares, respectively. On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. In February 2021, the Company’s board of directors granted a total of 1,035,000 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $38.8 million and $44.0 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. Events Subsequent to the Original Issuance of Consolidated Financial Statements (Unaudited) In March 2021, the Company’s board of directors granted a total of 1,066,631 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $53.6 million and $60.7 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. In March 2021, the Company’s board of directors granted a total of 11,293,177 RSUs to its CEO under the 2021 Plan in connection with the proposed merger with CCIV. The CEO RSU Award will be comprised of 5,232,507 RSUs subject to performance and service conditions (the “CEO Time-Based RSUs”) and 6,060,670 RSUs subject to performance and market conditions (the “CEO Performance RSUs”). The aggregate grant date fair value of the CEO RSU Award is estimated to be $556.1 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques, including a Monte Carlo simulation method for awards with market conditions, with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The performance condition of the CEO Time-Based RSUs and CEO Performance RSUs will be satisfied upon the closing of the proposed merger with CCIV. The service condition for the CEO Time-Based RSUs will be satisfied in 16 equal quarterly installments beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. The market conditions for the CEO Performance RSUs will be satisfied based upon the achievement of certain market capitalization goals of the combined company during the five-year period beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. In April 2021, the Company issued 25,306,130 Series E Preferred Shares at a purchase price of approximately $7.90 per share for an aggregate purchase price of $200.0 million. The total number of shares issued include 202,449 shares issued to the CEO. In May 2021, the Company completed its evaluation related to the exercise of the convertible preferred share warrant liability that was settled in its entirety in February 2021. Upon final settlement, the Company converted the warrants into $12.9 million of Series D convertible preferred shares and recorded a $7.0 million loss related to fair value remeasurement of the warrants in the consolidated statements of operations. From March 2021 through May 2021, the Company entered into new lease agreements for retail locations in various locations. The leases commenced in April 2021 and will expire on or before March 2032. Under the lease agreements, the Company will pay base rent from $0.2 million to $1.2 million annually. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share ( “ ” “ ” “ ” |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation and Preparation | Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in the other current assets is comprised primarily of customer reservation payments for electric vehicles and other escrow deposit for building of the Arizona plant. Restricted cash included in other non-current assets is primarily related to letters of credit issued to the landlord for the Company’s headquarter in Newark, California and retail locations, and escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. The Company has restricted cash in current assets of $11.3 million and $19.8 million as of December 31, 2020 and 2019, respectively, consisting of customer reservation payments for electric vehicles of $0.5 million and $0.3 million and the escrow deposit for building of the Arizona plant of $ 10.8 million and $19.5 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company has $14.7 million and $8.2 million, respectively, held in long-term restricted cash consisting of $5.0 million and $5.0 million, respectively, for the letter of credit required by the landlord for the headquarter facility in Newark, California, $8.0 million and $1.5 million, respectively, in letter of credit required by the landlord for the retail locations, and $1.7 million and $1.7 million, respectively, in escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 |
Accounts Receivable | Accounts Receivable Accounts receivable consist of current trade receivables from a single customer. The Company records accounts receivable at their net realizable value. Management’s estimate for expected credit losses for outstanding accounts receivable are based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and the establishment of specific reserves for customers in an adverse financial condition. Adjustments are made based upon the Company’s expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. The Company also considers current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company reassesses the adequacy of estimated credit losses each reporting period. At December 31, 2020 and 2019, the Company did not record an allowance for doubtful accounts. | |
Short-Term Investments | Short-Term Investments Investments with original or remaining maturities of more than three months at the time of purchase are generally classified as short-term investments and consist of time deposits. The Company’s short-term investments consist of certificates of deposit totaling $0.5 million as of December 31, 2020 and 2019. | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization for leasehold improvements. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. The Company generally uses the following estimated useful lives for each asset category: Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements that increase functionality of the asset are capitalized and depreciated ratably over the identified useful life. Upon disposition or retirement of property and equipment, the related cost and accumulated depreciation and amortization are removed, and any gain or loss is reflected in operations. The Company recorded a disposition loss on fixed assets of $0.1 million for the year ended December 31, 2020 and an immaterial loss for the year ended December 31, 2019. | |
Inventory | Inventory Inventory, consisting of raw materials, work in progress and finished goods is stated at the lower of cost or net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on a first-in, first-out basis. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered to be held in excess of demand or obsolete based upon assumptions about future demand and market conditions. The Company also reviews the status of the inventory periodically to determine whether a lower of cost or net realizable value analysis needs to be performed based on market pricing. The Company’s inventory is associated with battery pack system projects with its customer and consists of the following (in thousands): December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 The Company did not adjust the cost basis of its inventory as of December 31, 2020 and 2019. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019. | |
Foreign Currency | Foreign Currency The US dollar is the functional currency of the Company’s consolidated subsidiaries operating outside of the US. Monetary assets and liabilities of these subsidiaries are remeasured into US dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are remeasured at historical rates. Expenses incurred in currencies other than the US dollar (the functional currency) are remeasured at average exchange rates in effect during each period. Foreign currency gains and losses from remeasurement are included within other income (expense) — net in the Company’s consolidated statements of operations, and the Company recorded a foreign currency loss of $2.5 million for the year ended December 31, 2020 mainly due to the currency fluctuations of Euro, Japanese yen, and South Korean won, and an immaterial loss for the year ended December 31, 2019. | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers On January 1, 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method which did not result in an adjustment upon adoption. The Company follows a five-step process in which the Company identifies the contract, identifies the related performance obligations, determines the transaction price, allocates the contract transaction price to the identified performance obligations, and recognizes revenue when (or as) the performance obligations are transferred to the customer. The Company’s revenue consists of the sales of battery pack systems, supplies and related services for vehicles. The Company identifies the sale of battery pack systems and the related supplies as a performance obligation to be recognized at the point in time when control is transferred to the customer. Control transfers to the customer when the product is delivered to the customer as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Shipping and handling provided by Company is considered a fulfillment activity. While customers generally have the right to return defective or non-conforming products, past experience has demonstrated that product returns have been immaterial. Customer remedies may include either a cash refund or an exchange of the returned product. As a result, the right of return and related refund liability for non-conforming or defective goods is estimated and recorded as a reduction in revenue, if necessary. Payment for the products sold are made upon invoice or in accordance with payment terms customary to the business. The Company’s contracts do not contain significant financing components. Customer contracts generally do not include more than one performance obligation. If a contract were to contain more than one performance obligation, the Company shall allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. The Company does not have any remaining performance obligations or contract assets and liabilities as of December 31, 2020 and 2019. | |
Cost of Revenue | Cost of Revenue Cost of revenue includes direct parts, material and labor costs, manufacturing overhead, including amortized tooling costs, shipping and logistic costs, and reserves for estimated warranty expenses related to its battery packs. Cost of revenue also includes adjustments to warranty expense and charges to write down the carrying value of inventory when it exceeds its estimated net realizable value or to provide for obsolete and on-hand inventory in excess of forecasted demand. | |
Warranties | Warranties The Company provides a manufacturer’s warranty on all battery packs it sells and accrues a warranty reserve for such battery packs, as applicable. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. Current estimates of the warranty reserve are immaterial, but changes to the Company’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities in the consolidated balance sheets. The Company recorded warranty expense of zero and $0.1 million as a component of cost of revenue in the consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. | |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense related to share-based awards granted to employees is measured and recognized in the Company’s consolidated financial statements based on fair value. Share-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for each employee share option expected to vest. The fair value of each share option granted to employees and nonemployees is estimated on the grant date using the Black-Scholes option-pricing model. For nonemployee share options, the fair value is remeasured as the share options vest, and the resulting change in fair value, if any, is recognized in the consolidated statements of operations during the period the related services are rendered. | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive loss is composed of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under US GAAP are recorded as an element of shareholders’ equity (deficit) but are excluded from net loss. For the years ended December 31, 2020 and 2019, as there are no activities that impacted comprehensive income (loss), there are no differences between comprehensive loss and net loss reported in the Company’s consolidated statements of operations. | |
Research and Development | Research and Development Research and development expenses consist primarily of personnel-related expenses, contractor fees, engineering design and testing expenses, and allocated facilities cost. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses have been expensed as incurred and included in the consolidated statements of operations. | |
Selling, General, and Administrative | Selling, General, and Administrative Selling, general and administrative expense consist of personnel and facilities costs related to marketing, sales, finance, human resources, information technology, and legal departments. | |
Advertising | Advertising Advertising is expensed as incurred and is included in sales and marketing expenses in the consolidated statements of operations. These costs were immaterial for the years ended December 31, 2020 and 2019, respectively. | |
Leases | Leases An arrangement is or contains a lease if there are specified assets and the right to control the use of a specified asset is conveyed for a period in exchange for consideration. Upon lease inception, the Company classifies leases as either operating or capital leases. Leases are classified as capital leases when the terms of the lease transfers substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating leases are not recognized on the consolidated balance sheets. For capital leases, the Company recognizes capital lease assets and corresponding lease liabilities within the consolidated balance sheets at lease commencement at the present value of the rental payments. The Company recognizes rent expense on a straight-line basis in the statements of operations for operating leases. For capital leases, the Company recognizes interest expense associated with the capital lease liability and depreciation expense associated with the capital lease asset. For capital lease assets and leasehold improvements, the estimated useful lives are limited to the shorter of the useful life of the asset or the term of the lease. The Company enters into operating and capital leases associated with its office space, manufacturing and retail facilities, and equipment. On certain of its operating lease agreements, the Company may receive rent holidays and other incentives, which are recognized over the lease term through rent expense. The difference between rent expense and the cash paid under the lease agreement is recorded as deferred rent. Lease incentives, including tenant improvement allowances, are also recorded as deferred rent and amortized on a straight-line basis over the lease term. The Company recorded deferred rent under other short-term and long-term liabilities in the consolidated balance sheets as of December 31, 2020 and 2019. If the term of the lease does not exceed 12 months, the Company elects to record the rental expense in the period it is incurred, and no deferred rent will be recorded. | |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount within a range of loss can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Legal costs incurred in connection with loss contingencies are expensed as incurred. | |
Net Loss Per Share | Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance outlines a comprehensive model for entities to use in accounting for leases and supersedes most current lease accounting guidance, including industry-specific guidance. The core principle of the new lease accounting model is that lessees are required, among other things, to recognize lease assets and lease liabilities in the consolidated balance sheets for those leases classified as operating leases under previous authoritative guidance. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company will apply the new transition method prescribed by ASU No. 2018-11 at the adoption date. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2022. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments, and amends existing earnings-per-share, or EPS, guidance by requiring that an entity use the if-converted method when calculating diluted EPS for convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We plan to adopt ASU 2020-06 effective January 1, 2022 and are currently evaluating the effect ASU 2020-06 will have on our consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of reconciliation of cash and restricted cash to amounts shown in the statements of cash flow | The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 | The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 |
Schedule of estimated useful lives | Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets | |
Schedule of inventory | December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 |
BALANCE SHEETS COMPONENTS (Tabl
BALANCE SHEETS COMPONENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BALANCE SHEETS COMPONENTS | ||
Schedule of prepaid expenses and other current assets | Prepaid expenses as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Engineering, design, and testing $ 14,871 $ 8,016 Software subscriptions 4,531 1,875 Prepayments for Arizona manufacturing equipment 80 13,895 Vehicle engineering 20 4,855 Other 2,338 969 Total prepaid expenses $ 21,840 $ 29,610 Other current assets as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Tenant allowance receivable $ 12,905 $ 20,463 Other current assets 313 115 Total other current assets $ 13,218 $ 20,578 | |
Schedule of other accrued and long-term liabilities | Other accrued liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Construction of Arizona plant $ 43,115 $ 27,906 Engineering, design, and testing 42,518 11,179 Tooling 15,243 138 Professional services 9,083 1,155 Series B convertible preferred shares repurchase liability 3,000 — Other liabilities 33,124 5,701 Total other accrued liabilities $ 146,083 $ 46,079 Other long-term liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Deferred rent $ 28,881 $ 26,175 Customer deposits 8,028 1,374 Capital leases 1,996 244 Total other long-term liabilities $ 38,905 $ 27,793 | |
Schedule of Property, plant and equipment | Property, plant, and equipment as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Land and land improvements $ 1,050 $ 1,050 Building and improvements 189,466 — Machinery 35,847 28,830 Computer equipment and software 20,755 15,716 Leasehold improvements 72,521 47,187 Furniture and fixtures 7,256 4,503 Capital leases — 3,908 Finance leases 7,674 — Construction in progress 588,057 636,851 Total property, plant, and equipment 922,626 738,045 Less accumulated depreciation and amortization (34,852) (24,771) Property, plant, and equipment – net $ 887,774 $ 713,274 June 30, December 31, 2021 2020 Tooling $ 277,512 $ 203,241 Construction of Arizona plant 4,701 171,532 Leasehold improvements 59,478 50,790 Machinery and equipment 246,366 211,288 Total construction in progress $ 588,057 $ 636,851 | Property, plant, and equipment as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Land and land improvements $ 1,050 $ — Machinery 28,830 13,127 Computer equipment and software 15,716 11,921 Leasehold improvements 47,187 10,441 Furniture and fixtures 4,503 1,520 Capital leases 3,908 619 Construction in progress 636,851 119,739 Total property, plant, and equipment 738,039 157,367 Less accumulated depreciation and amortization (24,771) (14,554) Property, plant, and equipment – net $ 713,274 $ 142,813 December 31, 2020 2019 Tooling $ 203,241 $ 27,025 Construction of Arizona plant 171,532 59,842 Leasehold improvements 50,790 22,667 Machinery and equipment 211,288 10,205 Total construction in progress $ 636,851 $ 119,739 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 | The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 |
Contingent forward contracts liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Summary of the changes in the fair value of the liabilities, measured on a recurring basis | A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ — $ 30,844 Issuance 2,167,332 — Change in fair value 454,546 8,719 Settlement (2,621,878) (39,563) Fair value-end of period $ — $ — | A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 15,791 Change in fair value 15,053 Fair value-December 31, 2019 30,844 Change in fair value of Series D contingent forward contract 8,720 Settlement of Series D contingent forward contract (39,563) Issuance of Series E contingent forward contract 793 Change in fair value of Series E contingent forward contract 109,662 Settlement of Series E contingent forward contract (110,456) Fair value-December 31, 2020 $ — |
Convertible preferred share warrant liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Summary of the changes in the fair value of the liabilities, measured on a recurring basis | A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ 2,960 $ 1,755 Change in fair value 6,976 114 Settlement (9,936) — Fair value-end of period $ — $ 1,869 | A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 1,349 Change in fair value 406 Fair value-December 31, 2019 1,755 Change in fair value 1,205 Fair value-December 31, 2020 $ 2,960 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
CONVERTIBLE NOTES | |
Schedule of interest expense information related to the Convertible Notes | Year Ended December 31, 2019 Amortization of issuance costs allocated to Convertible Notes $ 494 Amortization of debt discount from contingent forward contracts (Note 6) 2,900 Total interest expense $ 3,394 |
Schedule of convertible notes | Convertible Notes issued in 2018 $ 210,000 Debt discount and debt issuance cost incurred (22,763) Amortization of debt discount and issuance cost 1,623 Convertible Notes balance as of December 31, 2018 188,860 Convertible Notes issued in 2019 90,000 Debt discount and debt issuance cost incurred (19,051) Amortization of debt discount and issuance cost 3,394 Convertible Notes balance as of April 2, 2019 263,202 Accrued interest of Convertible Notes 8,782 Convertible Notes converted to Series D convertible preferred shares $ 271,984 |
CONTINGENT FORWARD CONTRACTS (T
CONTINGENT FORWARD CONTRACTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 | The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 |
Series D convertible preferred shares | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Settlement date 3/31/2020 6/30/2020 Expected term — — Contingent Series D convertible preferred shares fair value (per share) $ 6.99 $ 7.10 Present value factor 1.0000 1.0000 Estimated probability of satisfying milestones 100 % 100 % | |
Series E convertible preferred shares | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Effective date 9/22/2020 12/31/2020 Expected term 0.25 Years — Contingent Series E convertible preferred shares fair value (per share) $ 7.92 $ 10.09 Present value factor 0.9999 1.0000 Estimated probability of satisfying milestones 95 % 100 % | |
Series D contingent forward contract liability | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Effective date 9/20/2018 Coupon payment dates Semi-Annual Maturity date 03/20/2020 Initial term 1.5 Years Interest rate (coupon rate) 8.00 % Yield (market rate) 8.00 % Effective interest rate 2.47 % |
CONVERTIBLE PREFERRED SHARE W_2
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | ||
Schedule of assumptions used in determining the fair value of convertible preferred share warrants | December 31, 2020 Volatility 50.00 % Expected term (in years) 0.5 – 1.5 Risk-free rate 0.09 – 0.12 % Expected dividend rate 0.00 % | As of December 31, 2020 2019 Volatility 50.0 % 55.0 % Expected term (in years) 0.5 – 1.5 2.3 Risk-free rate 0.09 – 0.12 % 1.59 % Expected dividend rate 0.0 % 0.0 % |
CONVERTIBLE PREFERRED SHARES _2
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | ||
Summary of key inputs used in determining the fair value of contingent repurchase feature as of the extinguishment date | Effective date 9/30/2018 Current price $ 3.28 Exercise price $ 14.0 Initial term 0.5 Years Volatility 55.00 % Risk free rate 2.36 % Dividend yield 0.00 % | |
Summary of key inputs used in determining the fair value of convertible preferred shares as of the extinguishment date | Price per share $ 5.45 – 6.41 Term 1.7 – 2.4 Years Volatility 55.00 % Risk free rate 2.71% – 2.81% Price per share $ 6.41 Term 1.7 – 2.3 Years Volatility 55.00 % Risk free rate 1.59% – 2.71% | |
Summary of activities related to the PIF Convertible Notes and Series D convertible preferred share funding | Conversion of Convertible Notes $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series D received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,564 Conversion of preferred stock warrant to Series D in February 2021 3,000 Reclassification of preferred stock warrant liability to Series D in February 2021 9,936 Total proceeds of Series D $ 1,324,485 | Conversion of Convertible Notes (Note 5) $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,563 Total proceeds of Series D $ 1,311,548 |
Summary of convertible preferred shares, par value per share, authorized, and outstanding | As of June 30, 2021 and December 31, 2020, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of June 30, 2021 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 8,000,000 8,000,000 23,740 3.00 3.00 24,000 Series C 22,532,244 22,532,244 137,475 6.41 6.41 144,432 Series D 204,733,847 204,733,847 1,324,485 6.15 9.62 1,969,540 Series E 189,795,981 189,795,981 4,339,160 7.90 11.85 2,249,082 Total 437,182,072 437,182,072 $ 5,836,785 $ 4,399,174 As of December 31, 2020 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 * As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. | As of December 31, 2020, and 2019, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of December 31, 2020 Conversion Price Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 *As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. As of December 31, 2019 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 9,333,333 9,333,333 27,740 3.00 3.00 28,000 Series C 31,170,225 26,884,509 162,360 6.41 6.41 172,331 Series D 234,009,360 141,746,324 871,985 6.15 9.62 1,362,891 Total 286,632,918 190,084,166 $ 1,074,010 $ 1,575,342 |
Summary of common shares reserved for future issuances | June 30, December 31, 2021 2020 Convertible preferred shares outstanding 437,182,072 362,011,991 Share options outstanding 26,099,336 26,730,453 Restricted stock unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Shares available for future grants 4,469,725 3,981,178 Total common shares reserved 483,514,731 393,308,644 | As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Shares available for future grants 3,981,178 7,336,862 Total common shares reserved 393,308,645 224,218,549 |
SHARES-BASED AWARDS (Tables)
SHARES-BASED AWARDS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Summary of share option activity | Outstanding Options Weighted- Weighted Average Intrinsic Average Remaining Value Number of Exercise Contractual (in Options Price Term thousands) Balance – December 31, 2020 26,730,453 $ 2.21 7.8 $ 118,155 Options granted 3,177,756 7.51 Options exercised (3,028,530) 1.74 Options canceled (780,343) 3.13 Balance – June 30, 2021 26,099,336 $ 1.80 8.5 $ 2,491,171 Options vested and exercisable June 30, 2021 14,842,155 $ 1.88 6.6 $ 883,724 | A summary of share option activity under the 2009 Plan and the 2014 Plan is as follows: Outstanding Options Weighted- Weighted Average Average Remaining Intrinsic Shares Available for Number of Exercise Contractual Value (in Grant Options Price Term thousands) Balance – January 1, 2019 19,257,865 14,716,256 $ 1.06 6.37 $ 12,341 Options granted (12,943,015) 12,943,015 2.19 Options exercised — (424,761) 1.22 Options canceled 1,022,012 (1,022,012) 1.92 Balance – December 31, 2019 7,336,862 26,212,498 $ 1.58 6.27 $ 21,236 Options granted (9,009,210) 9,009,210 3.06 Options exercised — (2,837,729) 1.15 Options canceled 5,653,526 (5,653,526) 1.17 Balance – December 31, 2020 3,981,178 26,730,453 $ 2.21 7.79 $ 118,155 Options vested and exercisable December 31, 2020 26,111,472 $ 1.75 6.75 $ 75,944 |
Summary of the assumptions utilized to record compensation expense for share options granted | Six Months Ended June 30, 2021 2020 Weighted average volatility 41.9 % 42.7 % Expected term (in years) 5.9 6.0 Risk-free interest rate 0.6 % 1.1 % Expected dividends — — | A summary of the assumptions the Company utilized to record compensation expense for share options granted during the years ended December 31, 2020 and 2019, is as follows: Year Ended December 31, 2020 2019 Weighted average volatility 58.98 % 42.77 % Expected term (in years) 5.9 5.5 Risk-free interest rate 0.75 % 2.11 % Expected dividends — — |
Summary of employee and nonemployee share-based compensation expense | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Research and development $ 13,539 $ 552 $ 26,703 $ 1,393 Selling, general and administrative 10,910 458 102,541 588 Total $ 24,449 $ 1,010 $ 129,244 $ 1,981 | Total employee and nonemployee share-based compensation expense, including that related to the extended exercise terms for senior management and consultants for the years ended December 31, 2020 and 2019, is classified in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2020 2019 Cost of revenue $ 213 $ 443 Research and development 3,724 4,770 Selling, general and administrative 677 2,506 Total $ 4,614 $ 7,719 |
Management | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Summary of the assumptions utilized to record compensation expense for share options granted | Following are the assumptions used in the valuation of these options: For the Year Ended December 31, 2019 Volatility 47.5 % Expected terms (in years) 10 Risk-free interest rate 2.59 % Expected dividends — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
Summary of future minimum payments of operating leases | As previously reported in the Company’s audited financial statements for the year ended December 31, 2020 and under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows (in thousands): Operating Finance Leases Leases 2021 $ 25,490 $ 1,729 2022 28,837 1,547 2023 27,633 1,174 2024 28,207 9 2025 27,474 — Thereafter 116,155 — Total minimum lease payments $ 253,796 4,459 Less: Interest (1,202) Present value of lease obligations 3,257 Less: Current portion (1,261) Long-term portion of lease obligations 1,996 | Future minimum payments as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 25,490 2022 28,837 2023 27,633 2024 28,207 2025 27,474 Thereafter 116,155 Total $ 253,796 |
Summary of estimated purchase commitment | Minimum Purchase Years ended December 31, Commitment 2021 (remainder of the year) $ 104,370 2022 202,400 2023 202,400 Total $ 509,170 | Minimum Purchase Commitment Year Ending December 31: 2021 $ 101,200 2022 202,400 2023 202,400 Total $ 506,000 |
Summary of future minimum payments of capital leases | Operating Finance Leases Leases 2021 $ 25,490 $ 1,729 2022 28,837 1,547 2023 27,633 1,174 2024 28,207 9 2025 27,474 — Thereafter 116,155 — Total minimum lease payments $ 253,796 4,459 Less: Interest (1,202) Present value of lease obligations 3,257 Less: Current portion (1,261) Long-term portion of lease obligations 1,996 | Future minimum payments for the capital lease as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 1,729 2022 1,547 2023 1,174 2024 9 Total capital lease obligations 4,459 Less amounts representing interest (1,202) Capital lease obligations, net of interest $ 3,257 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
INCOME TAX | |
Summary of components of loss before income taxes | The components of loss before income taxes for the years ended December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Loss subject to domestic income taxes $ (719,636) $ (277,244) Loss subject to foreign income taxes 68 (90) $ (719,568) $ (277,334) |
Summary of income tax provision/(benefit) | The Company recorded an income tax provision/(benefit) of $(0.19) million and $0.03 million in connection with its domestic state and foreign subsidiaries for the years ended December 31, 2020 and 2019, respectively, as follows (in thousands): 2020 2019 Current Federal $ — $ — State 5 2 Foreign (193) 23 Total current tax expense (benefit) $ (188) $ 25 Deferred Federal $ — $ — State — — Foreign — — Total deferred tax expense (benefit) $ — $ — Total income tax expense (benefit) $ (188) $ 25 |
Summary of components of deferred taxes | Significant components of the Company’s deferred taxes as of December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 265,799 $ 139,899 Tax credit carryforwards 40,454 18,076 Share-based compensation expense 2,554 4,191 Depreciation 499 210 Accrued compensation and vacation 2,498 699 Interest 489 409 Tenant improvement allowance 8,777 7,757 Accruals and reserves 39,502 3,577 Other 1 — Total deferred tax assets 360,573 174,818 Valuation allowance (360,573) (174,818) Net deferred tax assets — — Net deferred tax assets (liabilities) $ — $ — |
Summary of reconciliation of taxes at the federal statutory rate to our provision for income taxes | Year Ended December 31, 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % Share-based compensation (0.2) (0.2) Mark-to-market adjustment (3.4) (1.1) Nondeductible expenses (0.1) (0.8) Tax credits 2.8 1.9 Change in valuation allowance (20.1) (20.8) Provision for income taxes — % — % |
Summary of activity related to unrecognized tax benefits | The following table summarizes the activity related to unrecognized tax benefits for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Unrecognized benefit – beginning of period $ 20,635 $ 11,647 Gross increases – prior-period tax positions 21 4 Gross decreases – prior-period tax positions (2) — Gross increases – current-period tax positions 22,382 8,995 Gross decrease – current-period tax positions — (11) Statute lapse (142) — Unrecognized benefit – end of period $ 42,894 $ 20,635 |
Summary of interest expense and penalty expense related to the unrecognized tax benefits | Related to the unrecognized tax benefits above, the Company recognized interest expense and penalty expense as part of income tax expenses in the consolidated statements of operations according to the following table (in thousands): Year Ended December 31, 2020 2019 Interest expense $ (45) $ 16 Penalty expense (20) 1 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
Schedule of basic and diluted loss per common share | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (261,726) $ (117,285) $ (1,009,678) $ (246,868) Deemed dividend related to the issuance of Series E convertible preferred shares — — (2,167,332) — Net loss attributable to common shareholders $ (261,726) $ (117,285) $ (3,177,010) $ (246,868) Weighted-average shares outstanding — basic and diluted 13,728,639 8,319,168 13,042,653 8,117,746 Net loss per share: Basic and diluted $ (19.06) $ (14.10) $ (243.59) $ (30.41) | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2020 2019 Basic and diluted net loss per share Numerator: Net loss $ (719,380) $ (277,357) Deemed contribution related to repurchase of Series B convertible preferred shares 1,000 — Deemed contribution related to repurchase of Series C convertible preferred shares 12,784 7,935 Net loss attributable to common shareholders $ (705,596) $ (269,422) Denominator: Weighted-average shares outstanding – basic 9,389,540 7,789,421 Effect of dilutive potential common shares from share options, share awards and employee share purchase plan — — Weighted-average shares outstanding – diluted 9,389,540 7,789,421 Net loss per share: Basic $ (75.15) $ (34.59) Diluted $ (75.15) $ (34.59) |
Schedule of potential common shares not included in the calculation of diluted net loss per share | As of June 30, 2021 2020 Convertible preferred shares outstanding 437,182,072 252,486,667 Share options outstanding 26,099,336 22,729,435 Restricted share unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Total 479,045,006 275,801,124 | As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Total potential convertible securities to common shares 389,327,467 216,881,686 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) $ / shares in Units, $ in Thousands | Feb. 22, 2021USD ($) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares |
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Operating losses, including net losses | $ (261,726) | $ (117,285) | $ (1,009,678) | $ (246,868) | $ (719,380) | $ (277,357) | |
Accumulated deficit | $ (4,495,788) | $ (4,495,788) | $ (1,356,893) | $ (637,513) | |||
Cash Acquired from Acquisition | $ 2,800,000 | ||||||
Share exchange agreement with Atieva Cayman's | |||||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||
Exchange ratio | 1 | ||||||
Percentage of distribution of wholly owned subsidiaries | 100.00% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($)segment | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Number of operating segments | segment | 1 | |||
Number of reporting segments | segment | 1 | |||
Restricted cash, current portion | $ 11,278 | $ 10,989 | $ 18,456 | $ 19,767 |
Customer reservation payments, current | 500 | 300 | ||
Escrow deposit, current | 10,800 | 19,500 | ||
Restricted cash, less current portion | 14,728 | $ 23,278 | $ 8,200 | 8,200 |
Escrow deposit, non-current | 1,700 | 1,700 | ||
California | ||||
Letter of credit, non-current | 5,000 | 5,000 | ||
Retail Locations | ||||
Letter of credit, non-current | $ 8,000 | $ 1,500 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cash and Cash equivalents) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Cash | $ 557,938 | $ 614,412 | $ 293,896 | $ 351,684 | |
Restricted cash, current portion | 10,989 | 11,278 | 18,456 | 19,767 | |
Restricted cash, less current portion | 23,278 | 14,728 | 8,200 | 8,200 | |
Total cash and restricted cash | $ 592,205 | $ 640,418 | $ 320,552 | $ 379,651 | $ 97,808 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Short Term Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Short-term investments | $ 505 | $ 505 | $ 505 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property, Plant, and Equipment) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Property, Plant and Equipment [Line Items] | |
Loss on disposition of fixed assets | $ 0.1 |
Machinery | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Computer equipment and software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 5 years |
Capital leases | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives (in years) | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Raw materials | $ 661 | $ 205 | |
Work in progress | 70 | 51 | |
Finished goods | 312 | 428 | |
Total inventory | $ 28,224 | $ 1,043 | $ 684 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Additional Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Impairment of long-lived assets | $ 0 | $ 0 |
Foreign currency loss | 2,500 | |
Warranty expense | $ 0 | $ 100 |
BALANCE SHEETS COMPONENTS - Pre
BALANCE SHEETS COMPONENTS - Prepaid expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Prepaid expenses | ||||
Engineering, design, and testing | $ 14,871 | $ 8,016 | ||
Software subscriptions | 4,531 | 1,875 | ||
Prepayments for Arizona manufacturing equipment | 80 | 13,895 | ||
Vehicle engineering | 20 | 4,855 | ||
Other | 2,338 | 969 | ||
Total prepaid expenses | $ 41,276 | $ 21,660 | $ 21,840 | $ 29,610 |
BALANCE SHEETS COMPONENTS - Oth
BALANCE SHEETS COMPONENTS - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
BALANCE SHEETS COMPONENTS | ||
Tenant allowance receivable | $ 12,905 | $ 20,463 |
Other current assets | 313 | 115 |
Total other current assets | $ 13,218 | $ 20,578 |
BALANCE SHEETS COMPONENTS - O_2
BALANCE SHEETS COMPONENTS - Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
BALANCE SHEETS COMPONENTS | ||
Construction of Arizona plant | $ 43,115 | $ 27,906 |
Engineering, design, and testing | 42,518 | 11,179 |
Tooling | 15,243 | 138 |
Professional services | 9,083 | 1,155 |
Series B convertible preferred shares repurchase liability | 3,000 | |
Other liabilities | 33,124 | 5,701 |
Total other accrued liabilities | $ 146,083 | $ 46,079 |
BALANCE SHEETS COMPONENTS - O_3
BALANCE SHEETS COMPONENTS - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
BALANCE SHEETS COMPONENTS | ||||
Deferred rent | $ 28,881 | $ 26,175 | ||
Customer deposits | $ 11,908 | 8,028 | 1,374 | |
Long-term portion of lease obligations | 3,963 | 1,996 | 244 | |
Total other long-term liabilities | $ 164,547 | $ 125,057 | $ 38,905 | $ 27,793 |
BALANCE SHEETS COMPONENTS Prope
BALANCE SHEETS COMPONENTS Property, Plant, and Equipment, net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | $ 922,626 | $ 738,045 | |
Capital leases | 7,674 | 3,908 | |
Less accumulated depreciation and amortization | (34,852) | (24,771) | |
Property, plant, and equipment - net | 887,774 | 713,274 | |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 1,050 | 1,050 | |
Machinery | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 35,847 | 28,830 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 20,755 | 15,716 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 72,521 | 47,187 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 7,256 | 4,503 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 588,057 | 636,851 | |
Depreciation | $ 0 | $ 0 | |
Restatement | |||
Property, Plant and Equipment [Line Items] | |||
Capital leases | $ 619 | ||
Less accumulated depreciation and amortization | (14,554) | ||
Property, plant, and equipment - net | 142,813 | ||
Restatement | Machinery | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 13,127 | ||
Restatement | Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 11,921 | ||
Restatement | Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 10,441 | ||
Restatement | Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | 1,520 | ||
Restatement | Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment | $ 119,739 |
BALANCE SHEETS COMPONENTS - Pro
BALANCE SHEETS COMPONENTS - Property, Plant, and Equipment, net - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | $ 636,851 | $ 119,739 | ||||
Depreciation and amortization expense | $ 6,800 | $ 1,800 | $ 11,738 | $ 3,292 | 10,217 | 3,842 |
Depreciation on capital leased assets | 500 | 200 | ||||
Construction in progress | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 588,057 | 588,057 | 636,851 | |||
Tooling | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 277,512 | 277,512 | 203,241 | 27,025 | ||
Construction of Arizona plant | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 4,701 | 4,701 | 171,532 | 59,842 | ||
Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 59,478 | 59,478 | 50,790 | 22,667 | ||
Machinery and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | $ 246,366 | $ 246,366 | $ 211,288 | $ 10,205 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS- Company's Financial Assets and Liabilities (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Assets | $ 34,772 | $ 26,511 | $ 28,472 |
Liabilities: | |||
Liabilities | 2,960 | 32,599 | |
Convertible preferred share warrant liability | |||
Liabilities: | |||
Liabilities | 2,960 | 1,755 | |
Contingent forward contracts liability | |||
Liabilities: | |||
Liabilities | 30,844 | ||
Short-term investment Certificate of deposit | |||
Assets: | |||
Assets | 505 | 505 | 505 |
Restricted cash - short term | |||
Assets: | |||
Assets | 34,267 | 26,006 | 19,767 |
Restricted cash - short term | |||
Assets: | |||
Assets | 11,278 | ||
Restricted cash - long term | |||
Assets: | |||
Assets | 14,728 | 8,200 | |
Level 1 | |||
Assets: | |||
Assets | 34,267 | 26,006 | 27,967 |
Level 1 | Restricted cash - short term | |||
Assets: | |||
Assets | 34,267 | 26,006 | 19,767 |
Level 1 | Restricted cash - short term | |||
Assets: | |||
Assets | 11,278 | ||
Level 1 | Restricted cash - long term | |||
Assets: | |||
Assets | 14,728 | 8,200 | |
Level 2 | |||
Assets: | |||
Assets | 505 | 505 | 505 |
Level 2 | Short-term investment Certificate of deposit | |||
Assets: | |||
Assets | $ 505 | 505 | 505 |
Level 3 | |||
Liabilities: | |||
Liabilities | 2,960 | 32,599 | |
Level 3 | Convertible preferred share warrant liability | |||
Liabilities: | |||
Liabilities | $ 2,960 | 1,755 | |
Level 3 | Contingent forward contracts liability | |||
Liabilities: | |||
Liabilities | $ 30,844 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS - Reconciliation of the Contingent Forward Contract Liability (Details) - Contingent forward contracts liability - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 0 | $ 30,844 | $ 30,844 | $ 15,791 |
Change in fair value | 454,546 | 8,719 | 15,053 | |
Settlement of Series | (2,621,878) | $ (39,563) | ||
Issuance of Series | $ 2,167,332 | |||
Ending balance | 0 | $ 30,844 | ||
Series D contingent forward contract liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in fair value | 8,720 | |||
Settlement of Series | (39,563) | |||
Series E contingent forward contract liability | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Change in fair value | 109,662 | |||
Settlement of Series | (110,456) | |||
Issuance of Series | $ 793 |
FAIR VALUE OF FINANCIAL INSTR_5
FAIR VALUE OF FINANCIAL INSTRUMENTS - Reconciliation of the Convertible Preferred Share Warrant Liabilities (Details) - Convertible preferred share warrant liability - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 2,960 | $ 1,755 | $ 1,755 | $ 1,349 |
Change in fair value | 6,976 | 114 | 1,205 | 406 |
Ending balance | $ 0 | $ 1,869 | $ 2,960 | $ 1,755 |
CONVERTIBLE NOTES (Details)
CONVERTIBLE NOTES (Details) - USD ($) $ in Thousands | Apr. 02, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Apr. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term Debt [Line Items] | |||||||||||
Proceeds from the issuance of the Convertible Notes | $ 70,949 | ||||||||||
Convertible Notes outstanding | $ 263,202 | $ 263,200 | $ 188,860 | ||||||||
Contingent forward contract liability | $ 12,400 | 30,844 | |||||||||
Amortization of debt discount and issuance cost | $ 3,394 | 3,394 | 1,623 | ||||||||
Amortization of debt discount from contingent forward contracts (Note 6) | 2,747 | $ 0 | 3,394 | ||||||||
Amortization of issuance costs allocated to Convertible Notes | 494 | ||||||||||
Securities purchase agreement with the Public Investment Fund | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Investment amount | $ 1,300,000 | ||||||||||
Contingent forward contract liability | 18,600 | ||||||||||
Series D convertible preferred shares | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Proceeds from issuance of shares | $ 200,000 | $ 200,000 | $ 3,000 | 400,000 | $ 400,000 | 600,000 | |||||
Contingent forward contract liability | $ 39,600 | $ 39,600 | |||||||||
Series D convertible preferred shares | Securities purchase agreement with the Public Investment Fund | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Investment amount | 1,000,000 | ||||||||||
Proceeds from issuance of shares | $ 200,000 | ||||||||||
Share issuance costs | 300 | ||||||||||
Convertible notes | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Amortization of debt discount and issuance cost | 21,800 | 3,400 | |||||||||
Amortization of debt discount from contingent forward contracts (Note 6) | 18,600 | ||||||||||
Amortization of issuance costs allocated to Convertible Notes | $ 3,200 | ||||||||||
Term of convertible notes | 18 months | ||||||||||
Effective interest rate of the Convertible Notes | 2.47% | ||||||||||
Convertible notes | Securities purchase agreement with the Public Investment Fund | |||||||||||
Short-term Debt [Line Items] | |||||||||||
Investment amount | $ 300,000 | ||||||||||
Proceeds from the issuance of the Convertible Notes | 119,000 | ||||||||||
Aggregate principal amount | 120,000 | ||||||||||
Payment to third parties | 1,000 | ||||||||||
Proceeds from convertible notes, monthly installment | $ 30,000 | ||||||||||
Interest rate (as a percent) | 8.00% | ||||||||||
Convertible Notes outstanding | $ 209,000 | ||||||||||
Follow-on installments receivable | $ 90,000 | ||||||||||
Transaction costs with issuance of the Convertible Notes | 13,700 | ||||||||||
Transaction costs on liability | 300,000 | ||||||||||
Transaction costs on equity components | $ 1,000,000 | ||||||||||
Debt issuance costs | $ 3,200 |
CONVERTIBLE NOTES - Interest Ex
CONVERTIBLE NOTES - Interest Expense Information (Details) - USD ($) $ in Thousands | Apr. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
CONVERTIBLE NOTES | |||
Amortization of issuance costs allocated to Convertible Notes | $ 494 | ||
Amortization of debt discount from contingent forward contracts (Note 6) | 2,900 | ||
Total interest expense | $ 3,394 | $ 3,394 | $ 1,623 |
CONVERTIBLE NOTES - Conversion
CONVERTIBLE NOTES - Conversion details (Details) - USD ($) $ in Thousands | Apr. 02, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2019 |
CONVERTIBLE NOTES | ||||
Convertible Notes issued | $ 90,000 | $ 210,000 | ||
Debt discount and debt issuance cost incurred | (19,051) | (22,763) | ||
Amortization of debt discount and issuance cost | 3,394 | $ 3,394 | 1,623 | |
Convertible Notes balance | 263,202 | $ 188,860 | $ 263,200 | |
Accrued interest of Convertible Notes | 8,782 | $ 8,800 | ||
Convertible Notes converted to Series D convertible preferred shares | $ 271,984 |
CONTINGENT FORWARD CONTRACTS (D
CONTINGENT FORWARD CONTRACTS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2018 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2021 | Nov. 30, 2020 | |
Derivative [Line Items] | ||||||||||||
Reclassification from contingent forward contracts liability | $ 12,382,000 | $ 3,203,000 | $ 454,546,000 | $ 8,719,000 | $ 118,382,000 | $ 15,053,000 | ||||||
Contingent forward contract liability | $ 12,400,000 | 12,400,000 | 30,844,000 | |||||||||
Series D contingent forward contract liability | ||||||||||||
Derivative [Line Items] | ||||||||||||
Proceeds from issuance of shares | $ 200,000,000 | |||||||||||
Number of shares issued | 31,201,245 | |||||||||||
Fair value of contingent forward contract liability | $ 21,400,000 | $ 36,400,000 | 21,400,000 | 21,400,000 | ||||||||
Reclassification from contingent forward contracts liability | 18,200,000 | |||||||||||
Contingent forward contract liability | 0 | 0 | 0 | |||||||||
Loss related to fair value remeasurements | $ 3,200,000 | 8,700,000 | ||||||||||
Series E contingent forward contract liability | ||||||||||||
Derivative [Line Items] | ||||||||||||
Fair value of contingent forward contract liability | $ 110,500,000 | 110,500,000 | ||||||||||
Loss related to fair value remeasurements | 109,700,000 | |||||||||||
Series D convertible preferred shares | ||||||||||||
Derivative [Line Items] | ||||||||||||
Proceeds from issuance of shares | $ 200,000,000 | $ 200,000,000 | 3,000,000 | $ 400,000,000 | $ 400,000,000 | $ 600,000,000 | ||||||
Number of shares issued | 31,201,256 | 31,201,245 | 31,201,256 | 62,402,501 | 62,402,501 | 141,746,324 | ||||||
Contingent forward contract liability | $ 39,600,000 | $ 39,600,000 | $ 39,600,000 | |||||||||
Loss related to fair value remeasurements | $ 8,700,000 | |||||||||||
Series E convertible preferred shares | ||||||||||||
Derivative [Line Items] | ||||||||||||
Proceeds from issuance of shares | 400,000,000 | $ 600,000,000 | $ 899,725,000 | |||||||||
Number of shares issued | 25,306,130 | 75,918,392 | 113,877,589 | |||||||||
Fair value of contingent forward contract liability | $ 0 | |||||||||||
Contingent forward contract liability | $ 110,500,000 | $ 110,500,000 | $ 800,000 | |||||||||
Convertible notes | ||||||||||||
Derivative [Line Items] | ||||||||||||
Debt discount | $ 18,600,000 | |||||||||||
Convertible notes | Series D convertible preferred shares | ||||||||||||
Derivative [Line Items] | ||||||||||||
Debt discount | $ 18,600,000 |
CONTINGENT FORWARD CONTRACTS -
CONTINGENT FORWARD CONTRACTS - Series D contingent forward contract liability (Details) - Series D contingent forward contract liability | Dec. 31, 2020RateUSD ($) |
Term | |
Derivative [Line Items] | |
Measurement input | $ | 1.5 |
Risk-free rate | |
Derivative [Line Items] | |
Measurement input | 8 |
Dividend yield | |
Derivative [Line Items] | |
Measurement input | 8 |
Effective interest rate | |
Derivative [Line Items] | |
Measurement input | 2.47 |
CONTINGENT FORWARD CONTRACTS _2
CONTINGENT FORWARD CONTRACTS - Series D convertible preferred shares (Details) - Series D convertible preferred shares | Jun. 30, 2020 | Mar. 31, 2020 |
Stock price | ||
Derivative [Line Items] | ||
Derivative Liability, Measurement Input | 7.10 | 6.99 |
Present value factor | ||
Derivative [Line Items] | ||
Derivative Liability, Measurement Input | 1 | 1 |
Estimated probability of satisfying milestones | ||
Derivative [Line Items] | ||
Derivative Liability, Measurement Input | 100 | 100 |
CONTINGENT FORWARD CONTRACTS _3
CONTINGENT FORWARD CONTRACTS - Series E convertible preferred shares (Details) - Series E convertible preferred shares | Dec. 31, 2020USD ($) | Sep. 22, 2020 |
Term | ||
Derivative [Line Items] | ||
Measurement input | 0.25 | |
Stock price | ||
Derivative [Line Items] | ||
Measurement input | 10.09 | 7.92 |
Present value factor | ||
Derivative [Line Items] | ||
Measurement input | 1 | 0.9999 |
Estimated probability of satisfying milestones | ||
Derivative [Line Items] | ||
Measurement input | 100 | 95 |
CONVERTIBLE PREFERRED SHARE W_3
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 28, 2021 | Sep. 30, 2017 | Mar. 31, 2017 | |
Class of Warrant or Right [Line Items] | |||||||||
Warrants outstanding | 585,022 | 585,022 | |||||||
Loss on warrant liabilities | $ 57 | $ 6,976 | $ 114 | $ 1,205 | $ 406 | ||||
Series D convertible preferred shares | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants converted in to shares | 12,900,000 | ||||||||
Loss on warrant liabilities | $ 7,000 | ||||||||
Convertible preferred share warrant liability | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants converted in to shares | 2 | 2 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ 5.13 | ||||||||
Warrants expiry term (in years) | 10 years | 10 years | 10 years | ||||||
Warrant liability | $ 3,000 | $ 200 | $ 400 | ||||||
Warrants outstanding | 585,022 | 585,022 | |||||||
Carrying amount per share | $ 5.06 | $ 3 | |||||||
Issuance of Class B common stock | $ 3,000 | $ 1,800 | |||||||
Loss on warrant liabilities | $ 1,200 | $ 400 | |||||||
Convertible preferred share warrant liability | Series D convertible preferred shares | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants converted in to shares | 585,023 | ||||||||
Class of warrant or right, exercise price of warrants or rights | $ 5.128 | $ 5.128 | $ 5.128 | ||||||
Warrants outstanding | 585,022 | 585,022 |
CONVERTIBLE PREFERRED SHARE W_4
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY - Convertible preferred share warrants (Details) - Convertible preferred share warrant liability | Dec. 31, 2020USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 50 | 50 | 55 |
Term | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 2.3 | ||
Term | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.5 | 0.5 | |
Term | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 1.5 | 1.5 | |
Risk-free rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 1.59 | ||
Risk-free rate | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.09 | 0.09 | |
Risk-free rate | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.12 | 0.12 | |
Dividend yield | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0 | 0 |
CONVERTIBLE PREFERRED SHARES _3
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - First Company Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Proceeds from the issuance of the Convertible Notes | $ 70,949 | ||
Series C | |||
Equity, Class of Treasury Stock [Line Items] | |||
Carrying amount per share | $ 14 | ||
Carrying amount of shares repurchased | $ 60,000 | ||
Series C | First Company Repurchase | |||
Equity, Class of Treasury Stock [Line Items] | |||
Proceeds from the issuance of the Convertible Notes | $ 10,000 | ||
Number of shares repurchased | 714,286 | ||
Price per share | $ 14 | ||
Carrying amount per share | $ 6.41 | ||
Carrying amount of shares repurchased | $ 4,600 | ||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 5,400 |
CONVERTIBLE PREFERRED SHARES _4
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Second Company Repurchase (Details) - Second Company Repurchase - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Apr. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Repurchase period | 6 months | |||
Probability of successfully achieving the contingencies | 95.00% | |||
Fair value of contingent repurchase feature | $ 10.03 | |||
Series C | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Number of shares agreed to repurchase | 4,642,857 | |||
Price per share | $ 14 | $ 14 | ||
Carrying amount of shares to be repurchased | $ 65 | |||
Fair value of contingent repurchase feature | $ 10.03 |
CONVERTIBLE PREFERRED SHARES _5
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Fair value of Contingent (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2018USD ($)$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | |
Second Company Repurchase | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of contingent repurchase feature | $ / shares | $ 10.03 | ||||
Aggregate carrying amount of shares extinguished | $ 14,300,000 | ||||
Second Company Repurchase | Stock price | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of the contingent repurchase feature | 3.28 | ||||
Second Company Repurchase | Exercise price | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of the contingent repurchase feature | 14 | ||||
Second Company Repurchase | Term | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of the contingent repurchase feature | 0.5 | ||||
Second Company Repurchase | Volatility | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of the contingent repurchase feature | 55 | ||||
Second Company Repurchase | Risk-free rate | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of the contingent repurchase feature | 2.36 | ||||
Second Company Repurchase | Dividend yield | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of the contingent repurchase feature | 0 | ||||
Series C | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Carrying amount per share | $ / shares | $ 14 | ||||
Series C | Second Company Repurchase | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Fair value of preferred shares prior to extinguishment | $ / shares | 3.28 | ||||
Fair value of preferred shares after extinguishment | $ / shares | 13.31 | ||||
Fair value of contingent repurchase feature | $ / shares | 10.03 | ||||
Carrying amount per share | $ / shares | $ 6.41 | $ 13.31 | |||
Aggregate carrying amount of shares extinguished | $ 32,000,000 | ||||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 2,500,000 | 9,400,000 | |||
Increase in accumulated deficit related to excess fair value paid over carrying amount | $ 22,600,000 | ||||
Series C | Second Company Repurchase | Stock price | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 6.41 | ||||
Series C | Second Company Repurchase | Stock price | Minimum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 5.45 | ||||
Series C | Second Company Repurchase | Stock price | Maximum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 6.41 | ||||
Series C | Second Company Repurchase | Term | Minimum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 1.7 | 1.7 | |||
Series C | Second Company Repurchase | Term | Maximum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 2.4 | 2.3 | |||
Series C | Second Company Repurchase | Volatility | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 55 | 55 | |||
Series C | Second Company Repurchase | Risk-free rate | Minimum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 2.71 | 1.59 | |||
Series C | Second Company Repurchase | Risk-free rate | Maximum | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Series C convertible preferred shares | 2.81 | 2.71 |
CONVERTIBLE PREFERRED SHARES _6
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Repurchase Agreement (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Apr. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Second Company Repurchase | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares extinguished | 1,071,428 | ||||
Aggregate carrying amount of shares extinguished | $ 14.3 | ||||
Fair value of each share extinguished | $ 3.60 | ||||
Increase in additional paid-in capital related to the difference between fair value after extinguishment and carrying amount | 10.4 | ||||
Series C | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Carrying amount per share | $ 14 | ||||
Series C | Second Company Repurchase | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 3,571,429 | ||||
Price per share | $ 14 | $ 14 | |||
Number of shares extinguished | 1,071,428 | ||||
Carrying amount per share | $ 13.31 | $ 6.41 | |||
Carrying amount of shares repurchased | 47.5 | ||||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 2.5 | $ 9.4 | |||
Aggregate carrying amount of shares extinguished | $ 32 | ||||
Fair value of each share extinguished | $ 3.60 |
CONVERTIBLE PREFERRED SHARES _7
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Convertible preferred shares (Details) - Series C - Second Company Repurchase - USD ($) | Jun. 30, 2019 | Sep. 30, 2018 |
Stock price | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 6.41 | |
Stock price | Minimum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 5.45 | |
Stock price | Maximum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 6.41 | |
Term | Minimum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 1.7 | 1.7 |
Term | Maximum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 2.3 | 2.4 |
Volatility | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 55 | 55 |
Risk-free rate | Minimum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 1.59 | 2.71 |
Risk-free rate | Maximum | ||
Equity, Class of Treasury Stock [Line Items] | ||
Series C convertible preferred shares | 2.71 | 2.81 |
CONVERTIBLE PREFERRED SHARES _8
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Third Company Repurchase (Details) - Third Company Repurchase - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Aug. 31, 2020 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 10.5 | |
Series C | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares agreed to repurchase | 3,652,265 | |
Price per share | $ 2.70 | |
Value of shares agreed to repurchase | $ 9.9 | |
Carrying value of the repurchased convertible preferred shares | $ 20.4 | |
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 10.5 |
CONVERTIBLE PREFERRED SHARES _9
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Fourth Company Repurchase (Details) - Series C - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Carrying amount per share | $ 14 | ||
Fourth Company Repurchase | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares agreed to repurchase | 700,000 | 700,000 | |
Price per share | $ 3.20 | $ 3.20 | |
Value of shares agreed to repurchase | $ 2.2 | $ 2.2 | |
Carrying amount per share | $ 6.41 | ||
Carrying value of the repurchased convertible preferred shares | $ 4.5 | ||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 2.2 |
CONVERTIBLE PREFERRED SHARES_10
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Fifth Company Repurchase (Details) - Series B - Fifth Company Repurchase - USD ($) $ in Millions | Dec. 22, 2020 | Dec. 31, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares agreed to repurchase | 1,333,333 | |
Carrying value of the repurchased convertible preferred shares | $ 4 | |
Value of shares agreed to repurchase | 3 | |
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 1 | |
Mandatorily redeemable term | 45 days |
CONVERTIBLE PREFERRED SHARES_11
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Series D Preferred Share Issuance (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 23, 2021 | Apr. 02, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||||||
Convertible Notes converted to Series D convertible preferred shares | $ 271,984 | |||||||||
Issuance of Class B common stock (in shares) | 1,193,226,511 | |||||||||
Series D | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from issuance of preferred shares | $ 1,324,485 | $ 1,311,548 | ||||||||
Series D | Security Purchase Agreement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | $ 400,000 | |||||||||
Proceeds from agreement received in tranches | $ 200,000 | $ 200,000 | $ 200,000 | |||||||
Convertible Notes converted to Series D convertible preferred shares | $ 272,000 | |||||||||
Issuance of Class B common stock (in shares) | 31,201,256 | 31,201,245 | 141,746,324 | |||||||
Shares issued, price per share | $ 6.15 | |||||||||
Proceeds from issuance of preferred shares | $ 872,000 | |||||||||
Share issuance costs recorded as noncurrent assets | $ 10,200 | |||||||||
Share issuance costs incurred and recorded as an issuance cost in additional paid in capital | $ 300 | |||||||||
Series D | First tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | 200,000 | |||||||||
Proceeds from agreement received in tranches | $ 200,000 | $ 200,000 | $ 200,000 | |||||||
Series D | Second tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | 400,000 | |||||||||
Proceeds from agreement received in tranches | $ 400,000 | 400,000 | ||||||||
Series D | Third tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | $ 400,000 | $ 400,000 |
CONVERTIBLE PREFERRED SHARES_12
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - PIF Convertible Notes (Details) - Series D - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||||||
Conversion of Convertible Notes | $ 271,985 | $ 271,985 | ||||||
Issuance of Class B common stock to Sponsor | $ 200,000 | $ 200,000 | $ 400,000 | $ 200,000 | $ 200,000 | $ 200,000 | ||
Contingent forward contract liability reclassified | 39,564 | 39,563 | ||||||
Total proceeds | $ 1,324,485 | $ 1,311,548 |
CONVERTIBLE PREFERRED SHARES_13
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Convertible Preferred Stock (Details) $ / shares in Units, $ in Thousands | Dec. 24, 2020USD ($)shares | Sep. 21, 2020USD ($)item$ / sharesshares | Feb. 28, 2021$ / sharesshares | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2019USD ($) |
Class of Stock [Line Items] | ||||||
Contingent Forward Contract Liability , Noncurrent | $ 12,400 | $ 30,844 | ||||
Series E | Security Purchase Agreement | ||||||
Class of Stock [Line Items] | ||||||
Contingent Forward Contract Liability , Noncurrent | $ 800 | $ 800 | ||||
Carrying amount per share | $ / shares | $ 7.90 | $ 7.90 | ||||
Number of sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities | item | 2 | |||||
Number of shares issued | shares | 50,612,262 | |||||
Fair value of contingent forward contract | 110,500 | |||||
Change in fair value | $ 109,700 | |||||
Series E | First tranche | ||||||
Class of Stock [Line Items] | ||||||
Proceeds from agreement received in tranches | $ 500,000 | |||||
Number of shares issued | shares | 63,265,327 | |||||
Series E | Second tranche | ||||||
Class of Stock [Line Items] | ||||||
Proceeds from agreement received in tranches | $ 400,000 | |||||
Number of shares issued | shares | 50,612,262 |
CONVERTIBLE PREFERRED SHARES_14
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Additional information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Convertible preferred shares, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Maximum aggregate number of shares sold | 400,510,507 | 437,182,072 | 437,182,072 | 286,632,918 |
Number of shares subject to redemption | 362,011,991 | 437,182,072 | 190,084,166 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 2,494,076 | $ 5,836,785 | ||
Convertible preferred shares, liquidation amount | $ 3,497,913 | $ 4,399,174 | $ 1,084,191 | |
Series A | ||||
Class of Stock [Line Items] | ||||
Maximum aggregate number of shares sold | 12,120,000 | 12,120,000 | 12,120,000 | |
Number of shares subject to redemption | 12,120,000 | 12,120,000 | 12,120,000 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 11,925 | $ 11,925 | $ 11,925 | |
Convertible preferred shares, conversion price per share to common shares | $ 1 | $ 1 | $ 1 | |
Convertible preferred shares, liquidation per share amount | $ 1 | $ 1 | $ 1 | |
Convertible preferred shares, liquidation amount | $ 12,120 | $ 12,120 | $ 12,120 | |
Series B | ||||
Class of Stock [Line Items] | ||||
Maximum aggregate number of shares sold | 9,333,333 | 8,000,000 | 9,333,333 | |
Number of shares subject to redemption | 9,333,333 | 8,000,000 | 9,333,333 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 23,740 | $ 23,740 | $ 27,740 | |
Convertible preferred shares, conversion price per share to common shares | $ 3 | $ 3 | $ 3 | |
Convertible preferred shares, liquidation per share amount | $ 3 | $ 3 | $ 3 | |
Convertible preferred shares, liquidation amount | $ 28,000 | $ 24,000 | $ 28,000 | |
Number of shares extinguished | 1,333,333 | |||
Aggregate carrying amount of shares extinguished | $ 3,000 | |||
Series C | ||||
Class of Stock [Line Items] | ||||
Maximum aggregate number of shares sold | 31,170,225 | 22,532,244 | 31,170,225 | |
Number of shares subject to redemption | 22,532,244 | 22,532,244 | 26,884,509 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 137,475 | $ 137,475 | $ 162,360 | |
Convertible preferred shares, conversion price per share to common shares | $ 6.41 | $ 6.41 | $ 6.41 | |
Convertible preferred shares, liquidation per share amount | $ 6.41 | $ 6.41 | $ 6.41 | |
Convertible preferred shares, liquidation amount | $ 144,432 | $ 144,432 | $ 172,331 | |
Series D | ||||
Class of Stock [Line Items] | ||||
Maximum aggregate number of shares sold | 234,009,360 | 204,733,847 | 234,009,360 | |
Number of shares subject to redemption | 204,148,825 | 204,733,847 | 141,746,324 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 1,311,548 | $ 1,324,485 | $ 871,985 | |
Convertible preferred shares, conversion price per share to common shares | $ 6.15 | $ 6.15 | $ 6.15 | |
Convertible preferred shares, liquidation per share amount | $ 9.62 | $ 9.62 | $ 9.62 | |
Convertible preferred shares, liquidation amount | $ 1,963,912 | $ 1,969,540 | $ 1,362,891 | |
Series E | ||||
Class of Stock [Line Items] | ||||
Maximum aggregate number of shares sold | 113,877,589 | 189,795,981 | ||
Number of shares subject to redemption | 113,877,589 | 189,795,981 | ||
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 1,009,388 | $ 4,339,160 | ||
Convertible preferred shares, conversion price per share to common shares | $ 7.90 | $ 7.90 | ||
Convertible preferred shares, liquidation per share amount | $ 11.85 | $ 11.85 | ||
Convertible preferred shares, liquidation amount | $ 1,349,449 | $ 2,249,082 |
CONVERTIBLE PREFERRED SHARES_15
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Dividends (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Noncumulative dividends rate (as a percent) | 8.00% | ||
Dividend declared | $ 0 | $ 0 | $ 0 |
Series A | |||
Class of Stock [Line Items] | |||
Noncumulative dividends at an annual rate (in dollar per share) | $ 0.08 | $ 0.08 | |
Series B | |||
Class of Stock [Line Items] | |||
Noncumulative dividends at an annual rate (in dollar per share) | 0.24 | 0.24 | |
Series C | |||
Class of Stock [Line Items] | |||
Noncumulative dividends at an annual rate (in dollar per share) | $ 0.5128 | $ 0.5128 |
CONVERTIBLE PREFERRED SHARES_16
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Liquidation (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Series E | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1.5 | 1.5 |
Series D | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1.5 | 1.5 |
Series C | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1 | 1 |
Series B | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1 | 1 |
Series A | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1 | 1 |
CONVERTIBLE PREFERRED SHARES_17
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Automatic Conversion (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Minimum pre-offering market capitalization required for automatic conversion | $ 2,500 | $ 2,500 |
Minimum gross proceeds from sale of issuance of shares required for automatic conversion | $ 200 | $ 200 |
Series A | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series B | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series C | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series D | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series E | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 50.00% | 50.00% |
CONVERTIBLE PREFERRED SHARES_18
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Shares (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | ||||
Class A common stock subject to possible redemption | 437,182,072 | 362,011,991 | 190,084,166 | |
Share options outstanding | 26,099,336 | 26,730,453 | 26,212,498 | 14,716,256 |
Convertible preferred share warrant | 585,022 | 585,022 | ||
Number of Options | 4,469,725 | 3,981,178 | 7,336,862 | 19,257,865 |
Total common shares reserved | 483,514,731 | 393,308,644 |
SHARES-BASED AWARDS (Details)
SHARES-BASED AWARDS (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration term | 10 years | 10 years | ||
Number of Options | 4,469,725 | 3,981,178 | 7,336,862 | 19,257,865 |
Vesting on the first anniversary of the grant date | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | 4 years | ||
Vesting percentage | 25.00% | 25.00% | ||
Vesting ratably each month over the next three years | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | 3 years | ||
Vesting percentage | 75.00% | |||
2009 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to issue | 5,000,000 | 5,000,000 | ||
Number of Options | 0 | 0 | 0 | |
2014 Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized to issue | 31,884,190 | 31,884,190 | ||
Number of Options | 0 | 3,981,178 | 7,336,862 |
SHARES-BASED AWARDS - Summary o
SHARES-BASED AWARDS - Summary of share options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Shares Available for Grant | ||||
Balance at the beginning | 3,981,178 | 7,336,862 | 19,257,865 | |
Options granted | (3,177,756) | (9,009,210) | (12,943,015) | |
Options canceled | 780,343 | 5,653,526 | 1,022,012 | |
Balance at the end | 4,469,725 | 3,981,178 | 7,336,862 | 19,257,865 |
Number of Options | ||||
Balance at the beginning | 26,730,453 | 26,212,498 | 14,716,256 | |
Options granted | 9,009,210 | 12,943,015 | ||
Options granted | 3,177,756 | 9,009,210 | 12,943,015 | |
Options exercised | (3,028,530) | (2,837,729) | (424,761) | |
Options canceled | (780,343) | (5,653,526) | (1,022,012) | |
Balance at the end | 26,099,336 | 26,730,453 | 26,212,498 | 14,716,256 |
Options vested and exercisable at the end | 14,842,155 | 26,111,472 | ||
Weighted Average Exercise Price | ||||
Balance at the beginning (in dollars per share) | $ 2.21 | $ 1.58 | $ 1.06 | |
Options granted (in dollars per share) | 7.51 | 3.06 | 2.19 | |
Options exercised (in dollars per share) | 1.74 | 1.15 | 1.22 | |
Options canceled (in dollars per share) | 3.13 | 1.17 | 1.92 | |
Balance at the end (in dollars per share) | 1.80 | 2.21 | $ 1.58 | $ 1.06 |
Options vested and exercisable at the end (in dollars per share) | $ 1.88 | $ 1.75 | ||
Weighted-Average Remaining Contractual Term and Intrinsic Value | ||||
Weighted average remaining contractual term (in years) | 7 years 9 months 14 days | |||
Weighted-Average Remaining Contractual Term (in years) | 8 years 6 months | 7 years 9 months | 6 years 3 months 7 days | 6 years 4 months 13 days |
Options vested and exercisable at the end (in years) | 6 years 6 months | 6 years 9 months | ||
Intrinsic Value (in dollars) | $ 2,491,171 | $ 118,155 | $ 21,236 | $ 12,341 |
Options vested and exercisable at the end (in dollars) | $ 883,724 | $ 75,944 |
SHARES-BASED AWARDS - Additiona
SHARES-BASED AWARDS - Additional information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHARES-BASED AWARDS | ||||
Aggregate intrinsic value of options exercised | $ 102.5 | $ 0.7 | $ 8.3 | $ 0.4 |
Total fair value of share options granted | 23.9 | 10.1 | 14.8 | 13.9 |
Total fair value of share options vested | 3.1 | $ 1.8 | 3.9 | 6.9 |
Unamortized share-based compensation | $ 817.2 | $ 14.9 | $ 6.6 | |
weighted average remaining amortization period | 3 years 10 months 24 days | 3 years | 2 years 8 months 12 days |
SHARES-BASED AWARDS - Assumptio
SHARES-BASED AWARDS - Assumptions used in the valuation (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average volatility | 41.90% | 42.70% | 58.98% | 42.77% |
Expected term (in years) | 5 years 10 months 24 days | 6 years | 5 years 10 months 24 days | 5 years 6 months |
Risk-free interest rate | 0.60% | 1.10% | 0.75% | 2.11% |
Expected dividends | 0.00% | 0.00% | ||
Options granted | 3,177,756 | 9,009,210 | 12,943,015 | |
Management | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 47.50% | |||
Expected term (in years) | 10 years | |||
Risk-free interest rate | 2.59% | |||
Options granted | 6,700,000 | |||
Grant date fair value of option granted | $ 2.7 |
SHARES-BASED AWARDS - Statement
SHARES-BASED AWARDS - Statements of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | $ 24,449 | $ 1,010 | $ 129,244 | $ 1,981 | $ 4,614 | $ 7,719 |
Cost of revenue | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | 213 | 443 | ||||
Research and development | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | 13,539 | 552 | 26,703 | 1,393 | 3,724 | 4,770 |
Selling, general and administrative | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | $ 10,910 | $ 458 | $ 102,541 | $ 588 | $ 677 | $ 2,506 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||||||
Jul. 31, 2021USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($)ft² | Sep. 30, 2018USD ($)ft² | Sep. 30, 2017USD ($)ft² | Sep. 30, 2020USD ($)lease | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Commitments related to manufacturing plant and equipment | $ 253,796 | |||||||
Area for lease | ft² | 300,000 | |||||||
Payments for leases | $ 600 | |||||||
Increase in payments for leases (as a percent) | 3.00% | |||||||
Extension term | 12 years | |||||||
Number of lease agreements for retail locations | lease | 9 | |||||||
Annual base rent escalation clause (as a percent) | 3.00% | |||||||
ARIZONA | ||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Commitments related to manufacturing plant and equipment | 406,100 | $ 162,000 | ||||||
Term of lease | 4 years | |||||||
Area for lease | ft² | 500 | |||||||
Payments for leases | $ 1,800 | |||||||
California | ||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Base rent | $ 100 | |||||||
Annual base rent escalation clause (as a percent) | 3.00% | |||||||
Minimum | ||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Payments for leases | $ 100 | |||||||
Base rent | $ 100 | |||||||
Maximum | ||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Payments for leases | $ 500 | |||||||
Base rent | $ 400 | |||||||
Corporate headquarters | ||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Tenant improvements | 4,700 | 8,600 | ||||||
Term of lease | 10 years | |||||||
Area for lease | ft² | 127,000 | |||||||
Payments for leases | $ 300 | |||||||
Increase in payments for leases (as a percent) | 3.00% | |||||||
Leasehold improvements | ||||||||
Commitments And Contingencies Disclosure [Line Items] | ||||||||
Tenant improvements | $ 29,000 | $ 24,300 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Future Minimum Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Future minimum payments | ||
2021 | $ 25,490 | |
2022 | 28,837 | |
2023 | 27,633 | |
2024 | 28,207 | |
2025 | 27,474 | |
Thereafter | 116,155 | |
Total minimum lease payments | 253,796 | |
Rent expense incurred under operating leases | $ 19,600 | $ 18,300 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Estimated Purchase Commitment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Estimated purchase commitment | ||
2021 | $ 202,400 | $ 101,200 |
2022 | 202,400 | 202,400 |
2023 | 202,400 | |
Total | $ 509,170 | $ 506,000 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Future Minimum Payments for Capital Lease (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | ||
Capital lease, initial term | 36 months | 36 months |
Future minimum payments for the capital lease | ||
2021 | $ 1,729 | |
2022 | 1,547 | |
2023 | 1,174 | |
2024 | 9 | |
Total minimum lease payments | 4,459 | |
Less amounts representing interest | (1,202) | |
Present value of lease obligations | $ 3,257 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Indemnification (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
COMMITMENTS AND CONTINGENCIES | ||
Indemnification obligations | $ 24.6 | $ 15.5 |
INCOME TAXES - Components of lo
INCOME TAXES - Components of loss before income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components of loss before income taxes | ||||||
Loss subject to domestic income taxes | $ (719,636) | $ (277,244) | ||||
Loss subject to foreign income taxes | 68 | (90) | ||||
Loss before income taxes | $ (261,721) | $ (117,313) | $ (1,009,669) | $ (246,968) | $ (719,568) | $ (277,334) |
INCOME TAXES - Components of Co
INCOME TAXES - Components of Company's income tax provision (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current | ||||||
State | $ 5 | $ 2 | ||||
Foreign | (193) | 23 | ||||
Total current tax expense (benefit) | (188) | 25 | ||||
Deferred | ||||||
Provision for (benefit from) income taxes | $ 5 | $ (28) | $ 9 | $ (100) | $ (188) | $ 23 |
INCOME TAXES - Components of th
INCOME TAXES - Components of the Company's deferred taxes (Details) | Dec. 22, 2017 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
INCOME TAX | ||||
Statutory federal income tax rate | 35.00% | 21.00% | 21.00% | 21.00% |
INCOME TAXES - Significant comp
INCOME TAXES - Significant components of the Company's deferred taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 265,799 | $ 139,899 |
Tax credit carryforwards | 40,454 | 18,076 |
Share-based compensation expense | 2,554 | 4,191 |
Depreciation | 499 | 210 |
Accrued compensation and vacation | 2,498 | 699 |
Interest | 489 | 409 |
Tenant improvement allowance | 8,777 | 7,757 |
Accruals and reserves | 39,502 | 3,577 |
Other | 1 | |
Total deferred tax assets | 360,573 | 174,818 |
Valuation allowance | (360,573) | (174,818) |
Undistributed earnings from its foreign subsidiaries | 0 | 0 |
Deferred tax liability | $ 0 | $ 0 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAX | ||
Income tax provision/(benefit) in connection with domestic state and foreign subsidiaries | $ (190) | $ 30 |
Valuation allowance for deferred tax assets | 360,573 | 174,818 |
Increase in valuation allowance for deferred tax assets | 185,800 | 80,700 |
Federal and state net operating loss carryforwards | 960,700 | 716,100 |
Federal and state tax research and development tax credit carryforwards | $ 44,800 | $ 36,100 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of taxes at the federal statutory rate to our provision for income taxes (Details) | Dec. 22, 2017 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reconciliation of taxes at the federal statutory rate to our provision for income taxes | |||||
Statutory federal income tax rate | 35.00% | 21.00% | 21.00% | 21.00% | |
Share-based compensation | (0.20%) | (0.20%) | |||
Mark-to-market adjustment | (3.40%) | (1.10%) | |||
Nondeductible expenses | (0.10%) | (0.80%) | |||
Tax credits | 2.80% | 1.90% | |||
Change in valuation allowance | (20.10%) | (20.80%) | |||
Provision for income taxes | 0.00% | 0.00% |
INCOME TAXES - Activity related
INCOME TAXES - Activity related to unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Activity related to unrecognized tax benefits | ||
Unrecognized benefit - beginning of period | $ 20,635 | $ 11,647 |
Gross increases - prior-period tax positions | 21 | 4 |
Gross decreases - prior-period tax positions | (2) | |
Gross increases - current-period tax positions | 22,382 | 8,995 |
Gross decrease - current-period tax positions | (11) | |
Statute lapse | (142) | |
Unrecognized benefit - end of period | $ 42,894 | $ 20,635 |
INCOME TAXES - Recognized inter
INCOME TAXES - Recognized interest expense and penalty expense as part of income tax expenses in the consolidated statements of operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Recognized interest expense and penalty expense as part of income tax expenses in the consolidated statements of operations | ||
Interest expense | $ (45) | $ 16 |
Penalty expense | (20) | $ 1 |
Liability for interest expense | 60 | |
Liability for penalties | $ 9 |
NET LOSS PER SHARE (Details)
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | ||||||
Operating losses, including net losses | $ (261,726) | $ (117,285) | $ (1,009,678) | $ (246,868) | $ (719,380) | $ (277,357) |
Non-redeemable Net loss | $ (261,726) | $ (117,285) | $ (3,177,010) | $ (246,868) | $ (705,596) | $ (269,422) |
Denominator: | ||||||
Weighted-average shares outstanding - basic | 9,389,540 | 7,789,421 | ||||
Effect of dilutive potential common shares from share options, share awards and employee share purchase plan | 0 | 0 | ||||
Weighted-average shares outstanding - diluted | 9,389,540 | 7,789,421 | ||||
Net loss per share: | ||||||
Basic | $ (75.15) | $ (34.59) | ||||
Diluted | $ (75.15) | $ (34.59) | ||||
Series B convertible preferred shares | ||||||
Numerator: | ||||||
Deemed contribution related to repurchase of convertible preferred shares | $ 1,000 | $ 0 | ||||
Series C convertible preferred shares | ||||||
Numerator: | ||||||
Deemed contribution related to repurchase of convertible preferred shares | $ 12,784 | $ 7,935 |
NET LOSS PER SHARE (Potential C
NET LOSS PER SHARE (Potential Common Shares) (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 389,327,467 | 216,881,686 | ||
Convertible preferred shares outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 437,182,072 | 252,486,667 | 362,011,991 | 190,084,166 |
Share options outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 26,099,336 | 22,729,435 | 26,730,453 | 26,212,498 |
Convertible preferred share warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 0 | 585,022 | 585,023 | 585,023 |
EMPLOYEE BENEFIT PLAN (Details)
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLAN | |||
Maximum percentage of employees contribution | 100.00% | 100.00% | |
Employer contribution | $ 0 | $ 0 | $ 0 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
SEGMENT REPORTING | |
Number of operating segments | 1 |
Number of reporting segments | 1 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | Jul. 23, 2021shares | Apr. 01, 2021USD ($) | Feb. 01, 2021USD ($) | May 31, 2021USD ($)shares | Apr. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($)installmentshares | Feb. 28, 2021USD ($)$ / sharesshares | Jan. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Subsequent Event [Line Items] | ||||||||||||||||
Shares reserved for future issuance | shares | 393,308,644 | 483,514,731 | 393,308,644 | |||||||||||||
Annual base rent | $ | $ 1,200,000 | $ 200,000 | ||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 1,193,226,511 | |||||||||||||||
Threshold number of business days to offer issue notice for shareholders following the third closing | $ | 2 | |||||||||||||||
Exercise period | 14 days | |||||||||||||||
Common shares authorized | shares | 498,017,734 | 450,000,098 | 498,017,734 | 450,000,098 | 335,130,459 | |||||||||||
Convertible preferred shares authorized | shares | 437,182,072 | 400,510,507 | 437,182,072 | 400,510,507 | 286,632,918 | |||||||||||
Number of equal quarterly installments for the satisfaction of time-based awards | installment | 16 | |||||||||||||||
Period for satisfaction of market conditions | 5 years | |||||||||||||||
Loss on warrant liabilities | $ | $ 57,000 | $ 6,976,000 | $ 114,000 | $ 1,205,000 | $ 406,000 | |||||||||||
RSU award | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percent of service condition of RSUs | 25.00% | 25.00% | ||||||||||||||
Period for satisfaction of service condition after the closing of proposed merger | 375 days | 375 days | ||||||||||||||
RSU award | CEO | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Aggregate grant date fair value | $ | $ 556,100,000 | |||||||||||||||
Series E convertible preferred shares | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 25,306,130 | |||||||||||||||
Share Price | $ / shares | $ 7.90 | |||||||||||||||
Issuance of Class B common stock | $ | $ 200,000,000 | |||||||||||||||
Proceeds from issuance of shares | $ | $ 400,000,000 | 600,000,000 | 899,725,000 | |||||||||||||
Series E convertible preferred shares | CEO | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 202,449 | |||||||||||||||
Series D convertible preferred shares | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Proceeds from issuance of shares | $ | $ 200,000,000 | $ 200,000,000 | $ 3,000,000 | $ 400,000,000 | $ 400,000,000 | $ 600,000,000 | ||||||||||
Warrants converted in to shares | shares | 12,900,000 | |||||||||||||||
Loss on warrant liabilities | $ | $ 7,000,000 | |||||||||||||||
Ayar Third Investment Company | Series E convertible preferred shares | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Stock Issued During Period, Shares, New Issues | shares | 50,612,262 | |||||||||||||||
Share Price | $ / shares | $ 7.90 | |||||||||||||||
Issuance of Class B common stock | $ | $ 400,000,000 | |||||||||||||||
Proceeds from issuance of shares | $ | $ 400,000,000 | |||||||||||||||
Convertible preferred shareholders other than Ayar | Series E convertible preferred shares | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Share Price | $ / shares | $ 7.90 | |||||||||||||||
Issuance of Class B common stock | $ | $ 71,000,000 | |||||||||||||||
Option to purchase maximum number of shares | shares | 8,977,769 | |||||||||||||||
New lease agreements for retail locations | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Percentage of Annual Escalation in Base Rent | 2.50% | |||||||||||||||
New lease agreements for retail locations | Minimum | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Annual base rent | $ | $ 500,000 | |||||||||||||||
New lease agreements for retail locations | Maximum | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Annual base rent | $ | $ 800,000 | |||||||||||||||
2021 Stock Incentive Plan | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Shares reserved for future issuance | shares | 3,981,178 | |||||||||||||||
Number of shares authorized to issue | shares | 32,076,334 | |||||||||||||||
2021 Stock Incentive Plan | RSU award | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Granted | shares | 1,066,631 | 1,035,000 | ||||||||||||||
2021 Stock Incentive Plan | RSU award | CEO | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Granted | shares | 11,293,177 | |||||||||||||||
2021 Stock Incentive Plan | RSU award | Minimum | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Aggregate grant date fair value | $ | $ 53,600,000 | $ 38,800,000 | ||||||||||||||
2021 Stock Incentive Plan | RSU award | Maximum | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Aggregate grant date fair value | $ | $ 60,700,000 | $ 44,000,000 | ||||||||||||||
2021 Stock Incentive Plan | Performance and service conditions | CEO | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Granted | shares | 5,232,507 | |||||||||||||||
2021 Stock Incentive Plan | Performance and market conditions | CEO | ||||||||||||||||
Subsequent Event [Line Items] | ||||||||||||||||
Granted | shares | 6,060,670 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 557,938 | $ 614,412 |
Accounts receivable, net | 480 | 260 |
Other receivable | 27,434 | |
Short-term investments | 505 | 505 |
Inventory | 28,224 | 1,043 |
Prepaid expenses | 41,276 | 21,840 |
Other current assets | 13,218 | |
Total Current Assets | 682,444 | 662,556 |
Property, plant and equipment, net | 887,774 | 713,274 |
Right-of-use assets | 126,655 | |
Other noncurrent assets | 39,271 | 26,851 |
TOTAL ASSETS | 1,736,144 | 1,402,681 |
Current liabilities: | ||
Accounts payable | 13,970 | 17,333 |
Accrued compensation | 24,187 | 16,197 |
Finance lease liability, current portion | 2,572 | |
Other current liabilities | 159,049 | 151,753 |
Total Current Liabilities | 199,778 | 185,283 |
Convertible preferred share warrant liability | 2,960 | |
Finance lease liabilities, net of current portion | 3,963 | 1,996 |
Other long-term liabilities | 164,547 | 38,905 |
Income tax liabilities | 243 | 234 |
Total Liabilities | 368,531 | 227,382 |
Commitments and contingencies | ||
CONVERTIBLE PREFERRED SHARES | ||
Convertible preferred shares, $0.0001 par value; 437,182,072 and 400,510,507 shares authorized as of June 30, 2021 and December 31, 2020, respectively; 437,182,072 and 362,011,991 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively; liquidation preference of $4,399,174, and $3,497,913 as of June 30, 2021 and December 31, 2020, respectively | 5,836,785 | 2,494,076 |
SHAREHOLDERS' DEFICIT: | ||
Common stock value | 1 | 1 |
Additional Paid-in Capital | 26,615 | 38,115 |
Accumulated deficit | (4,495,788) | (1,356,893) |
Total Stockholders' Equity | (4,469,172) | (1,318,777) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,736,144 | $ 1,402,681 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
Convertible preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Maximum aggregate number of shares sold | 437,182,072 | 437,182,072 | 400,510,507 | 286,632,918 | |
Convertible preferred shares, shares issued | 437,182,072 | 362,011,991 | 190,084,166 | 51,909,271 | |
Number of shares subject to redemption | 437,182,072 | 362,011,991 | 190,084,166 | ||
Convertible preferred shares, liquidation preference | $ 4,399,174 | $ 3,497,913 | $ 1,084,191 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common shares, shares authorized | 498,017,734 | 498,017,734 | 450,000,098 | 335,130,459 | |
Common shares, shares issued | 13,917,981 | 10,889,451 | 8,051,722 | ||
Common shares, shares outstanding | 13,917,981 | 10,889,451 | 8,051,722 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||
Revenue | $ 174 | $ 487 | $ 8 | $ 3,976 | $ 4,590 | |
Cost of revenue | (19) | $ (59) | (104) | (59) | (3,070) | (3,926) |
Gross profit | 155 | 59 | 383 | 67 | 906 | 664 |
Operating expenses: | ||||||
Research and development | 176,802 | 97,940 | 344,171 | 207,699 | 511,110 | 220,223 |
Selling, general and administrative | 72,272 | 15,539 | 203,924 | 29,784 | 89,023 | 38,375 |
Total operating expenses | 249,074 | 113,479 | 548,095 | 237,483 | 600,133 | 258,598 |
Loss from operations | (248,919) | (113,420) | (547,712) | (237,416) | (599,227) | (257,934) |
Other income: | ||||||
Change in fair value of forward contracts | (12,382) | (3,203) | (454,546) | (8,719) | (118,382) | (15,053) |
Change in fair value of derivative liabilities | (57) | (6,976) | (114) | (1,205) | (406) | |
Interest expense | (30) | (1) | (35) | (10) | (64) | (8,547) |
Other expense | (390) | (632) | (400) | (709) | (690) | 4,606 |
Other expense net | (12,802) | (3,893) | (461,957) | (9,552) | (120,341) | (19,400) |
Loss before provision for income taxes | (261,721) | (117,313) | (1,009,669) | (246,968) | (719,568) | (277,334) |
Provision for (benefit from) income taxes | 5 | (28) | 9 | (100) | (188) | 23 |
Net loss | (261,726) | (117,285) | (1,009,678) | (246,868) | (719,380) | (277,357) |
Deemed dividend related to the issuance of Series E convertible preferred shares | 0 | (2,167,332) | ||||
Non-redeemable Net loss | $ (261,726) | $ (117,285) | $ (3,177,010) | $ (246,868) | $ (705,596) | $ (269,422) |
Net loss per share attributable to common shareholders - basic and diluted (in dollars per share) | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) |
Weighted average shares used in computing net loss per share attributable to common shareholders - basic and diluted (in shares) | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - USD ($) $ in Thousands | Convertible Preferred SharesSeries D contingent forward contract liability | Convertible Preferred Shares | Series B convertible preferred shares | Series C convertible preferred shares | Series D convertible preferred shares | Series E convertible preferred sharesAdditional Paid in Capital | Series E convertible preferred sharesAccumulated Deficit | Series E convertible preferred shares | Series D contingent forward contract liability | Series E contingent forward contract liability | Common Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2018 | $ 259,960 | |||||||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 51,909,271 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Repurchase of Series B convertible preferred shares | $ 47,531 | |||||||||||||
Repurchase of Series B convertible preferred shares (in shares) | (3,571,429) | |||||||||||||
Extinguishment of Series C convertible preferred shares | $ (10,404) | |||||||||||||
Issuance of Series convertible preferred shares | $ 871,985 | |||||||||||||
Issuance of Series convertible preferred shares (in shares) | 141,746,324 | |||||||||||||
Ending balance at Dec. 31, 2019 | $ 1,074,010 | $ 1,074,010 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 190,084,166 | 190,084,166 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Operating losses, including net losses | $ (277,357) | |||||||||||||
Exercise of share options (in shares) | 424,761 | |||||||||||||
Balance at Dec. 31, 2019 | $ 1 | $ 16,432 | $ (637,513) | $ (621,080) | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 8,051,722 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Issuance of Series convertible preferred shares | $ 400,000 | |||||||||||||
Issuance of Series convertible preferred shares (in shares) | 62,402,501 | |||||||||||||
Settlement of Series D contingent forward contract liability | $ 39,563 | |||||||||||||
Ending balance at Jun. 30, 2020 | $ 1,513,573 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 252,486,667 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Operating losses, including net losses | (246,868) | (246,868) | ||||||||||||
Exercise of share options | 323 | 323 | ||||||||||||
Exercise of share options (in shares) | 348,752 | |||||||||||||
Share-based compensation | 1,981 | 1,981 | ||||||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||||||
Beginning balance at Dec. 31, 2019 | $ 1,074,010 | $ 1,074,010 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2019 | 190,084,166 | 190,084,166 | ||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Repurchase of Series B convertible preferred shares | $ 24,885 | |||||||||||||
Repurchase of Series B convertible preferred shares (in shares) | (4,352,265) | |||||||||||||
Issuance of Series convertible preferred shares | $ 400,000 | $ 898,932 | ||||||||||||
Issuance of Series convertible preferred shares (in shares) | 62,402,501 | 113,877,589 | ||||||||||||
Extinguishment and reclassification of Series B convertible preferred shares | $ (4,000) | |||||||||||||
Settlement of Series D contingent forward contract liability | $ 39,563 | $ 110,456 | ||||||||||||
Ending balance at Dec. 31, 2020 | $ 2,494,076 | $ 2,494,076 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 362,011,991 | 362,011,991 | ||||||||||||
Balance at Dec. 31, 2019 | $ 1 | 16,432 | (637,513) | $ (621,080) | ||||||||||
Balance (in shares) at Dec. 31, 2019 | 8,051,722 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Operating losses, including net losses | $ (719,380) | |||||||||||||
Exercise of share options (in shares) | 2,837,729 | |||||||||||||
Balance at Dec. 31, 2020 | $ 1 | 38,115 | (1,356,893) | $ (1,318,777) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 10,889,451 | |||||||||||||
Beginning balance at Mar. 31, 2020 | $ 1,292,190 | |||||||||||||
Beginning balance (in shares) at Mar. 31, 2020 | 221,285,411 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Issuance of Series convertible preferred shares | $ 200,000 | |||||||||||||
Issuance of Series convertible preferred shares (in shares) | 31,201,256 | |||||||||||||
Settlement of Series D contingent forward contract liability | $ 21,383 | |||||||||||||
Ending balance at Jun. 30, 2020 | $ 1,513,573 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 252,486,667 | |||||||||||||
Balance at Mar. 31, 2020 | $ 1 | 17,436 | (767,096) | (749,659) | ||||||||||
Balance (in shares) at Mar. 31, 2020 | 8,186,387 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Operating losses, including net losses | (117,285) | (117,285) | ||||||||||||
Exercise of share options | 290 | 290 | ||||||||||||
Exercise of share options (in shares) | 214,087 | |||||||||||||
Share-based compensation | 1,010 | 1,010 | ||||||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||||||
Ending balance at Jun. 30, 2020 | $ 1,513,573 | |||||||||||||
Ending balance (in shares) at Jun. 30, 2020 | 252,486,667 | |||||||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||||||
Ending balance at Dec. 31, 2020 | $ 2,494,076 | $ 2,494,076 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 362,011,991 | 362,011,991 | ||||||||||||
Balance at Dec. 31, 2020 | $ 1 | 38,115 | (1,356,893) | $ (1,318,777) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 10,889,451 | |||||||||||||
Beginning balance at Jun. 30, 2020 | $ 1,513,573 | |||||||||||||
Beginning balance (in shares) at Jun. 30, 2020 | 252,486,667 | |||||||||||||
Balance at Jun. 30, 2020 | $ 1 | 18,736 | (884,381) | (865,644) | ||||||||||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | |||||||||||||
Beginning balance at Dec. 31, 2020 | $ 2,494,076 | $ 2,494,076 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 362,011,991 | 362,011,991 | ||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Repurchase of Series B convertible preferred shares (in shares) | (1,333,333) | |||||||||||||
Issuance of Series D convertible preferred shares upon exercise of | $ 12,936 | |||||||||||||
Issuance of Series D convertible preferred shares upon exercise of warrants (in shares) | 585,022 | |||||||||||||
Share-based compensation related to Series E convertible preferred shares | $ 123,614 | $ 123,600 | ||||||||||||
Issuance of Series convertible preferred shares | $ 3,206,159 | |||||||||||||
Issuance of Series convertible preferred shares (in shares) | 75,918,392 | |||||||||||||
Ending balance at Jun. 30, 2021 | $ 5,836,785 | $ 5,836,785 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 437,182,072 | 13,917,981 | 437,182,072 | |||||||||||
Balance at Dec. 31, 2020 | $ 1 | 38,115 | (1,356,893) | $ (1,318,777) | ||||||||||
Balance (in shares) at Dec. 31, 2020 | 10,889,451 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Operating losses, including net losses | (1,009,678) | (1,009,678) | ||||||||||||
Change due to issuance of convertible preferred shares | $ (22,396) | $ (2,129,217) | $ (2,151,613) | |||||||||||
Exercise of share options | 5,266 | $ 5,266 | ||||||||||||
Exercise of share options (in shares) | 3,028,530 | 3,028,530 | ||||||||||||
Share-based compensation | 5,630 | $ 5,630 | ||||||||||||
Balance at Jun. 30, 2021 | $ 1 | 26,615 | (4,495,788) | (4,469,172) | ||||||||||
Balance (in shares) at Jun. 30, 2021 | 13,917,981 | |||||||||||||
Beginning balance at Mar. 31, 2021 | $ 4,454,811 | |||||||||||||
Beginning balance (in shares) at Mar. 31, 2021 | 411,875,942 | |||||||||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||||||||||||
Share-based compensation related to Series E convertible preferred shares | $ 20,701 | 20,700 | ||||||||||||
Issuance of Series convertible preferred shares | $ 1,361,273 | |||||||||||||
Issuance of Series convertible preferred shares (in shares) | 25,306,130 | |||||||||||||
Ending balance at Jun. 30, 2021 | $ 5,836,785 | $ 5,836,785 | ||||||||||||
Ending balance (in shares) at Jun. 30, 2021 | 437,182,072 | 13,917,981 | 437,182,072 | |||||||||||
Balance at Mar. 31, 2021 | $ 1 | 6,198 | (4,234,062) | $ (4,227,863) | ||||||||||
Balance (in shares) at Mar. 31, 2021 | 13,498,196 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Operating losses, including net losses | (261,726) | (261,726) | ||||||||||||
Issuance of Series E convertible preferred shares | $ 15,719 | $ 15,719 | ||||||||||||
Exercise of share options | 950 | 950 | ||||||||||||
Exercise of share options (in shares) | 419,785 | |||||||||||||
Share-based compensation | 3,748 | 3,748 | ||||||||||||
Balance at Jun. 30, 2021 | $ 1 | $ 26,615 | $ (4,495,788) | $ (4,469,172) | ||||||||||
Balance (in shares) at Jun. 30, 2021 | 13,917,981 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net loss | $ (1,009,678) | $ (246,868) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 11,738 | 3,292 |
Amortization of debt discount from contingent forward contracts (Note 6) | 2,747 | 0 |
Non cash operating lease cost | 13,502 | |
Share-based compensation | 129,244 | 1,981 |
Loss on disposal of property and equipment | 56 | 139 |
Change in fair value of contingent forward contracts | 454,546 | 8,719 |
Changes in fair value of derivative liabilities | 6,976 | 114 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (220) | 148 |
Inventory | (27,181) | (1,703) |
Prepaid expenses and other current assets | (11,233) | 3,469 |
Other current assets | (2,380) | 2,789 |
Other noncurrent assets and security deposit | (3,870) | (2,455) |
Accounts payable | (11,871) | 4,253 |
Accrued compensation | 7,990 | 6,128 |
Operating lease liability | (7,742) | |
Financed insurance premium | (10,950) | 0 |
Other current liabilities and accrued liabilities | 4,522 | 11,752 |
Net cash used in operating activities | (453,804) | (208,242) |
Cash flows from investing activities: | ||
Purchases of property, equipment, and software | (206,533) | (251,090) |
Proceed from sale of property, equipment, and software | 19 | |
Net cash used in investing activities | (206,514) | (251,090) |
Cash flows from financing activities: | ||
Payment for short-term insurance financing note | (2,747) | 0 |
Payment for capital lease liabilities | (90) | |
Payment for finance lease liabilities | (1,364) | |
Proceeds from short-term insurance financing note | 10,950 | 0 |
Repurchase of Series B convertible preferred shares | (3,000) | |
Proceeds from exercise of share options | 5,266 | 323 |
Net cash provided by used in financing activities | 612,105 | 400,233 |
Net increase in cash, cash equivalents, and restricted cash | (48,213) | (59,099) |
Beginning cash, cash equivalents, and restricted cash | 640,418 | 379,651 |
Ending cash, cash equivalents, and restricted cash | 592,205 | 320,552 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 198 | 12 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Property and equipment included in accounts payable and accrued expense | (24,661) | 29,855 |
Conversion of Series D preferred share warrant to Series D convertible preferred share | 9,936 | |
Issuance of Series E convertible preferred shares contingent forward contracts | 2,167,332 | |
Capital contribution upon issuance of Series E preferred shares | 15,719 | |
Property and equipment acquired through capital leases | (4,437) | |
Capital leases retired upon adoption of new lease accounting standard | 3,257 | |
Series D convertible preferred shares | ||
Cash flows from financing activities: | ||
Proceeds from issuance of convertible preferred shares | 3,000 | 400,000 |
Supplemental disclosure of non-cash investing and financing activity: | ||
Settlement of Series D convertible preferred share contingent forward contract | $ (39,563) | |
Series E convertible preferred shares | ||
Cash flows from financing activities: | ||
Proceeds from issuance of convertible preferred shares | 600,000 | |
Supplemental disclosure of non-cash investing and financing activity: | ||
Settlement of Series D convertible preferred share contingent forward contract | $ (2,621,878) |
DESCRIPTION OF BUSINESS_2
DESCRIPTION OF BUSINESS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | ||
DESCRIPTION OF BUSINESS | NOTE 1 DESCRIPTION OF BUSINESS Overview Atieva, Inc. and its wholly owned subsidiaries (collectively, “Lucid,” the “Company,” “we,” “us” or “our”) is a technology and automotive company. The Company was founded in Silicon Valley in 2007 to develop the next generation of electric vehicle (“ EV On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. Upon the completion of the merger on July 23, 2021 (the "Closing"), the Company changed its name to Lucid Group, Inc. ("Lucid Group") and effectively comprised all of CCIV’s material operations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through June 30, 2021, the Company has incurred operating losses and negative cash flows from operating activities. For the six months ended June 30, 2021 and 2020, the Company has incurred operating losses, including net losses of $1.0 billion and $246.9 million, respectively. The Company has an accumulated deficit of $4.5 billion as of June 30, 2021. As of the end of June 30, 2021, the Company completed the first phase of the construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin commercial production of its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these condensed consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares. Upon the completion of the merger with CCIV, the Company received approximately an incremental $2.1 billion in cash from CCIV. In addition, the Company received $2.5 billion in Private Investment in Public Entity ("PIPE") investment. As such, this business combination eliminated the substantial doubt about the Company's ability to continue as a going concern within one year after the date the Current Report on Form 8-K/A to which this document forms an exhibit is available to be filed. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high-technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. | NOTE 1 — Overview The precursor of Atieva, Inc. (DBA Lucid Motors) was originally incorporated in the state of Delaware in December 2007 (“Atieva Delaware”). Atieva Delaware designed, developed, and built energy storage systems for electric vehicles and supplied automakers with the battery pack system needed to power hybrid, plug-in, and electric vehicles. In December 2009, Atieva Delaware and a newly incorporated Cayman Islands company (“Atieva Cayman”) entered into a share exchange agreement (the “Share Exchange Agreement”). Under the Share Exchange Agreement, (a) each holder of Atieva Delaware common shares exchanged such shares for shares of Atieva Cayman’s par value $0.0001 common shares (the “Common Shares”) on a one-for-one basis, and (b) each holder of Atieva Delaware Series A shares exchanged such shares for Atieva Cayman Series A shares on a one-for-one basis. Upon completion of the share exchange, Atieva Delaware was renamed as Atieva USA, Inc. with Atieva Cayman retaining the name of Atieva, Inc. Subsequent to the share exchange transaction, Atieva Delaware distributed 100% of its wholly owned subsidiaries in Hong Kong and Shanghai, China (“Atieva Hong Kong” and “Atieva Shanghai,” respectively) to Atieva Cayman in December 2010. In addition, Atieva Delaware registered a branch office in Taiwan in May 2008. In 2014, Atieva Cayman and its subsidiaries (the “Company” or “our”) changed its business model to focus on the design and development of high-performance fully electric vehicles and advanced electric vehicle powertrain components. As part of the build-out of the Company’s retail stores and service centers for distribution of vehicles to customers, the Company changed Atieva Delaware’s legal name to Lucid USA, Inc., and incorporated new subsidiaries in the U.S. and Canada, including Lucid Group USA, Inc., a Delaware corporation in August 2020, and Lucid Motors Canada ULC, a British Columbia unlimited liability company and an indirect, wholly-owned subsidiary of Lucid Group USA, Inc. in December 2020. The Company is headquartered in Newark, California and has various other global office locations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through December 31, 2020, the Company has incurred operating losses and negative cash flows from operating activities. For the years ended December 31, 2020 and 2019, the Company has incurred operating losses, including net losses of $719.4 million and $277.4 million, respectively. The Company has an accumulated deficit of $1.4 billion as of December 31, 2020. As of the end of 2020, the Company was finalizing construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin selling its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources were not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares, convertible notes, long-term debt and net proceeds from revenues. As discussed in Note 15 — Subsequent Events, on February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE: CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement with the Company for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. Upon completion of the merger, the Company expects to receive a minimum of $2.8 billion of incremental cash from a combination of cash at CCIV and a “Private Investor in Public Entity” (PIPE) investment. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in the other current assets is comprised primarily of customer reservation payments for electric vehicles and other escrow deposit for building of the Arizona plant. Restricted cash included in other non-current assets is primarily related to letters of credit issued to the landlord for the Company’s headquarter in Newark, California and retail locations, and escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. Other Significant Accounting Policies As of June 30, 2021, there were no material changes in the other significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1 filed with SEC on August 2, 2021. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. The Company has restricted cash in current assets of $11.3 million and $19.8 million as of December 31, 2020 and 2019, respectively, consisting of customer reservation payments for electric vehicles of $0.5 million and $0.3 million and the escrow deposit for building of the Arizona plant of $ 10.8 million and $19.5 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company has $14.7 million and $8.2 million, respectively, held in long-term restricted cash consisting of $5.0 million and $5.0 million, respectively, for the letter of credit required by the landlord for the headquarter facility in Newark, California, $8.0 million and $1.5 million, respectively, in letter of credit required by the landlord for the retail locations, and $1.7 million and $1.7 million, respectively, in escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 Accounts Receivable Accounts receivable consist of current trade receivables from a single customer. The Company records accounts receivable at their net realizable value. Management’s estimate for expected credit losses for outstanding accounts receivable are based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and the establishment of specific reserves for customers in an adverse financial condition. Adjustments are made based upon the Company’s expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. The Company also considers current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company reassesses the adequacy of estimated credit losses each reporting period. At December 31, 2020 and 2019, the Company did not record an allowance for doubtful accounts. Short-Term Investments Investments with original or remaining maturities of more than three months at the time of purchase are generally classified as short-term investments and consist of time deposits. The Company’s short-term investments consist of certificates of deposit totaling $0.5 million as of December 31, 2020 and 2019. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization for leasehold improvements. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. The Company generally uses the following estimated useful lives for each asset category: Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements that increase functionality of the asset are capitalized and depreciated ratably over the identified useful life. Upon disposition or retirement of property and equipment, the related cost and accumulated depreciation and amortization are removed, and any gain or loss is reflected in operations. The Company recorded a disposition loss on fixed assets of $0.1 million for the year ended December 31, 2020 and an immaterial loss for the year ended December 31, 2019. Inventory Inventory, consisting of raw materials, work in progress and finished goods is stated at the lower of cost or net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on a first-in, first-out basis. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered to be held in excess of demand or obsolete based upon assumptions about future demand and market conditions. The Company also reviews the status of the inventory periodically to determine whether a lower of cost or net realizable value analysis needs to be performed based on market pricing. The Company’s inventory is associated with battery pack system projects with its customer and consists of the following (in thousands): December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 The Company did not adjust the cost basis of its inventory as of December 31, 2020 and 2019. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019. Foreign Currency The US dollar is the functional currency of the Company’s consolidated subsidiaries operating outside of the US. Monetary assets and liabilities of these subsidiaries are remeasured into US dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are remeasured at historical rates. Expenses incurred in currencies other than the US dollar (the functional currency) are remeasured at average exchange rates in effect during each period. Foreign currency gains and losses from remeasurement are included within other income (expense) — net in the Company’s consolidated statements of operations, and the Company recorded a foreign currency loss of $2.5 million for the year ended December 31, 2020 mainly due to the currency fluctuations of Euro, Japanese yen, and South Korean won, and an immaterial loss for the year ended December 31, 2019. Revenue from Contracts with Customers On January 1, 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method which did not result in an adjustment upon adoption. The Company follows a five-step process in which the Company identifies the contract, identifies the related performance obligations, determines the transaction price, allocates the contract transaction price to the identified performance obligations, and recognizes revenue when (or as) the performance obligations are transferred to the customer. The Company’s revenue consists of the sales of battery pack systems, supplies and related services for vehicles. The Company identifies the sale of battery pack systems and the related supplies as a performance obligation to be recognized at the point in time when control is transferred to the customer. Control transfers to the customer when the product is delivered to the customer as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Shipping and handling provided by Company is considered a fulfillment activity. While customers generally have the right to return defective or non-conforming products, past experience has demonstrated that product returns have been immaterial. Customer remedies may include either a cash refund or an exchange of the returned product. As a result, the right of return and related refund liability for non-conforming or defective goods is estimated and recorded as a reduction in revenue, if necessary. Payment for the products sold are made upon invoice or in accordance with payment terms customary to the business. The Company’s contracts do not contain significant financing components. Customer contracts generally do not include more than one performance obligation. If a contract were to contain more than one performance obligation, the Company shall allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. The Company does not have any remaining performance obligations or contract assets and liabilities as of December 31, 2020 and 2019. Cost of Revenue Cost of revenue includes direct parts, material and labor costs, manufacturing overhead, including amortized tooling costs, shipping and logistic costs, and reserves for estimated warranty expenses related to its battery packs. Cost of revenue also includes adjustments to warranty expense and charges to write down the carrying value of inventory when it exceeds its estimated net realizable value or to provide for obsolete and on-hand inventory in excess of forecasted demand. Warranties The Company provides a manufacturer’s warranty on all battery packs it sells and accrues a warranty reserve for such battery packs, as applicable. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. Current estimates of the warranty reserve are immaterial, but changes to the Company’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities in the consolidated balance sheets. The Company recorded warranty expense of zero and $0.1 million as a component of cost of revenue in the consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. Share-Based Compensation Share-based compensation expense related to share-based awards granted to employees is measured and recognized in the Company’s consolidated financial statements based on fair value. Share-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for each employee share option expected to vest. The fair value of each share option granted to employees and nonemployees is estimated on the grant date using the Black-Scholes option-pricing model. For nonemployee share options, the fair value is remeasured as the share options vest, and the resulting change in fair value, if any, is recognized in the consolidated statements of operations during the period the related services are rendered. Comprehensive Income (Loss) Comprehensive loss is composed of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under US GAAP are recorded as an element of shareholders’ equity (deficit) but are excluded from net loss. For the years ended December 31, 2020 and 2019, as there are no activities that impacted comprehensive income (loss), there are no differences between comprehensive loss and net loss reported in the Company’s consolidated statements of operations. Research and Development Research and development expenses consist primarily of personnel-related expenses, contractor fees, engineering design and testing expenses, and allocated facilities cost. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses have been expensed as incurred and included in the consolidated statements of operations. Selling, General, and Administrative Selling, general and administrative expense consist of personnel and facilities costs related to marketing, sales, finance, human resources, information technology, and legal departments. Advertising Advertising is expensed as incurred and is included in sales and marketing expenses in the consolidated statements of operations. These costs were immaterial for the years ended December 31, 2020 and 2019, respectively. Leases An arrangement is or contains a lease if there are specified assets and the right to control the use of a specified asset is conveyed for a period in exchange for consideration. Upon lease inception, the Company classifies leases as either operating or capital leases. Leases are classified as capital leases when the terms of the lease transfers substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating leases are not recognized on the consolidated balance sheets. For capital leases, the Company recognizes capital lease assets and corresponding lease liabilities within the consolidated balance sheets at lease commencement at the present value of the rental payments. The Company recognizes rent expense on a straight-line basis in the statements of operations for operating leases. For capital leases, the Company recognizes interest expense associated with the capital lease liability and depreciation expense associated with the capital lease asset. For capital lease assets and leasehold improvements, the estimated useful lives are limited to the shorter of the useful life of the asset or the term of the lease. The Company enters into operating and capital leases associated with its office space, manufacturing and retail facilities, and equipment. On certain of its operating lease agreements, the Company may receive rent holidays and other incentives, which are recognized over the lease term through rent expense. The difference between rent expense and the cash paid under the lease agreement is recorded as deferred rent. Lease incentives, including tenant improvement allowances, are also recorded as deferred rent and amortized on a straight-line basis over the lease term. The Company recorded deferred rent under other short-term and long-term liabilities in the consolidated balance sheets as of December 31, 2020 and 2019. If the term of the lease does not exceed 12 months, the Company elects to record the rental expense in the period it is incurred, and no deferred rent will be recorded. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount within a range of loss can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Legal costs incurred in connection with loss contingencies are expensed as incurred. Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance outlines a comprehensive model for entities to use in accounting for leases and supersedes most current lease accounting guidance, including industry-specific guidance. The core principle of the new lease accounting model is that lessees are required, among other things, to recognize lease assets and lease liabilities in the consolidated balance sheets for those leases classified as operating leases under previous authoritative guidance. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company will apply the new transition method prescribed by ASU No. 2018-11 at the adoption date. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2022. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments, and amends existing earnings-per-share, or EPS, guidance by requiring that an entity use the if-converted method when calculating diluted EPS for convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We plan to adopt ASU 2020-06 effective January 1, 2022 and are currently evaluating the effect ASU 2020-06 will have on our consolidated financial statements and related disclosures. |
BALANCE SHEETS COMPONENTS_2
BALANCE SHEETS COMPONENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BALANCE SHEETS COMPONENTS | ||
BALANCE SHEETS COMPONENTS | NOTE 3 — BALANCE SHEETS COMPONENTS OTHER CURRENT AND LONG-TERM LIABILITIES Other current liabilities and long-term liabilities as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Engineering, design, and testing $ 42,674 $ 42,518 Construction of Arizona plant 12,227 43,115 Retail leasehold improvements 15,153 6,114 Professional services 5,399 9,083 Tooling 8,770 15,243 Payroll tax liability 32,728 — Series B convertible preferred share repurchase liability — 3,000 Short-term insurance financing note 8,204 980 Operating lease liabilities, current portion 11,620 — Other liabilities 22,274 31,700 Total other current liabilities $ 159,049 $ 151,753 As of June 30, 2021, the Company accrued a non-income tax liability of $32.7 million as other liabilities primarily related to payroll tax associated with certain compensation related events. The Company also recorded a $27.4 million receivable from employees related to this non-income tax liability as other receivables on the condensed consolidated balance sheets as of June 30, 2021. In April 2021, the Company financed an insurance premium of $11.0 million with a bank related to three commercial insurance policies. All three insurance policies have a one year term. The Company made a down payment for the insurance premium finance note of $0.9 million, and the total interest was $0.1 million, representing an annual interest of 2.65%. The Company will make 11 monthly installments of $0.9 million for principal and interest from May 2021 to March 2022. The Company recorded the total insurance premium of $11.0 million as prepaid insurance and is amortizing it on a straight-line basis over the insurance term of one year. The Company made $2.7 million of principal payments and $24.2 thousand of interest payments on the short-term insurance financing note during the three and six months ended June 30, 2021. The remaining principal balance of $8.2 million is recorded as part of the Company’s other current liabilities as of June 30, 2021. June 30, December 31, 2021 2020 Deferred rent $ — $ 28,881 Customer deposits 11,908 8,028 Capital lease liabilities — 1,996 Operating leases liabilities, net of current portion 152,639 — Total other long-term liabilities $ 164,547 $ 38,905 PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Land and land improvements $ 1,050 $ 1,050 Building and improvements 189,466 — Machinery 35,847 28,830 Computer equipment and software 20,755 15,716 Leasehold improvements 72,521 47,187 Furniture and fixtures 7,256 4,503 Capital leases — 3,908 Finance leases 7,674 — Construction in progress 588,057 636,851 Total property, plant, and equipment 922,626 738,045 Less accumulated depreciation and amortization (34,852) (24,771) Property, plant, and equipment – net $ 887,774 $ 713,274 Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities including tooling, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location in the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are ready for use. Construction in progress consisted of the following (in thousands): June 30, December 31, 2021 2020 Tooling $ 277,512 $ 203,241 Construction of Arizona plant 4,701 171,532 Leasehold improvements 59,478 50,790 Machinery and equipment 246,366 211,288 Total construction in progress $ 588,057 $ 636,851 Depreciation and amortization expense for the three months ended June 30, 2021 and 2020, was approximately $6.8 million and $1.8 million, respectively, and for the six months ended June 30, 2021 and 2020, was approximately $11.7 million and $3.3 million, respectively. | NOTE 3 — BALANCE SHEETS COMPONENTS Prepaid Expenses Prepaid expenses as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Engineering, design, and testing $ 14,871 $ 8,016 Software subscriptions 4,531 1,875 Prepayments for Arizona manufacturing equipment 80 13,895 Vehicle engineering 20 4,855 Other 2,338 969 Total prepaid expenses $ 21,840 $ 29,610 Other Current Assets Other current assets as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Tenant allowance receivable $ 12,905 $ 20,463 Other current assets 313 115 Total other current assets $ 13,218 $ 20,578 Other Accrued and Long-term Liabilities Other accrued liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Construction of Arizona plant $ 43,115 $ 27,906 Engineering, design, and testing 42,518 11,179 Tooling 15,243 138 Professional services 9,083 1,155 Series B convertible preferred shares repurchase liability 3,000 — Other liabilities 33,124 5,701 Total other accrued liabilities $ 146,083 $ 46,079 Other long-term liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Deferred rent $ 28,881 $ 26,175 Customer deposits 8,028 1,374 Capital leases 1,996 244 Total other long-term liabilities $ 38,905 $ 27,793 Property, Plant, and Equipment, net Property, plant, and equipment as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Land and land improvements $ 1,050 $ — Machinery 28,830 13,127 Computer equipment and software 15,716 11,921 Leasehold improvements 47,187 10,441 Furniture and fixtures 4,503 1,520 Capital leases 3,908 619 Construction in progress 636,851 119,739 Total property, plant, and equipment 738,039 157,367 Less accumulated depreciation and amortization (24,771) (14,554) Property, plant, and equipment – net $ 713,274 $ 142,813 Construction in progress represents the costs incurred in connection with the construction of buildings or new additions to the Company’s plant facilities including tooling, which is with outside vendors. Costs classified as construction in progress include all costs of obtaining the asset and bringing it to the location in the condition necessary for its intended use. No depreciation is provided for construction in progress until such time as the assets are completed and are ready for use. Construction in progress consisted of the following (in thousands): December 31, 2020 2019 Tooling $ 203,241 $ 27,025 Construction of Arizona plant 171,532 59,842 Leasehold improvements 50,790 22,667 Machinery and equipment 211,288 10,205 Total construction in progress $ 636,851 $ 119,739 Depreciation and amortization expense for the years ended December 31, 2020 and 2019, was approximately $10.2 million and $3.8 million, respectively, including capital lease depreciation expense of approximately $0.5 million and $0.2 million, respectively. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | ||
FAIR VALUE MEASUREMENTS | NOTE 4 — FAIR VALUE MEASUREMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 5 “Contingent Forward Contracts” and Note 6 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ — $ 30,844 Issuance 2,167,332 — Change in fair value 454,546 8,719 Settlement (2,621,878) (39,563) Fair value-end of period $ — $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ 2,960 $ 1,755 Change in fair value 6,976 114 Settlement (9,936) — Fair value-end of period $ — $ 1,869 | NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability and contingent forward contract liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 6 “Contingent Forward Contracts” and Note 7 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 15,791 Change in fair value 15,053 Fair value-December 31, 2019 30,844 Change in fair value of Series D contingent forward contract 8,720 Settlement of Series D contingent forward contract (39,563) Issuance of Series E contingent forward contract 793 Change in fair value of Series E contingent forward contract 109,662 Settlement of Series E contingent forward contract (110,456) Fair value-December 31, 2020 $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 1,349 Change in fair value 406 Fair value-December 31, 2019 1,755 Change in fair value 1,205 Fair value-December 31, 2020 $ 2,960 |
CONTINGENT FORWARD CONTRACTS_2
CONTINGENT FORWARD CONTRACTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONTINGENT FORWARD CONTRACTS | ||
CONTINGENT FORWARD CONTRACTS | NOTE 5 — CONTINGENT FORWARD CONTRACTS In September 2018, the Company entered into a Securities Purchase Agreement with PIF. Along with the execution of the Securities Purchase Agreement, the Company granted PIF the right to purchase the Company’s Series D convertible preferred shares in future periods. The Company determined PIF’s right to participate in future Series D convertible preferred shares financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $18.6 million as a debt discount to the Convertible Notes issued in September 2018. In March 2020, the Company received $200.0 million in exchange for 31,201,245 shares of Series D convertible preferred shares as partial settlement of the Series D contingent forward contract liability and revalued the contingent forward contract liability to the then fair value of $36.4 million and reclassified $18.2 million of the contingent forward contract liability into Series D convertible preferred shares. In June 2020, upon satisfaction of the second set of milestones (refer to Note 7 “Convertible Preferred Shares and Shareholders’ Deficit”), the Company received the remaining $200.0 million in exchange for 31,201,256 shares of Series D convertible preferred shares as final settlement of the Series D contingent forward contract liability and revalued the contingent forward contracts liability to the then fair value of $39.6 million and reclassified the liability into Series D convertible preferred shares. The Series D contingent forward contract liability incurred a total fair value loss of $3.2 million and $8.7 million during the three and six months ended June 30, 2020. Since the Series D contingent forward contract liability was fully settled in June 2020, there was no related outstanding contingent forward contract liability as of June 30, 2020. As discussed in Note 7 “Convertible Preferred Shares and Shareholders’ Deficit”, in September 2020, along with the execution of the Securities Purchase Agreement, the Company granted Ayar Third Investment Company (“Ayar”) the right to purchase the Company’s additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred shares financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $0.8 million into contingent forward contract liabilities. In December 2020, Ayar waived the Company’s remaining outstanding obligations, and the Company received $400.0 million for the issuance of Series E convertible preferred shares. Upon settlement, the Company revalued the Series E contingent forward contracts to the then fair value of $110.5 million and reclassified the contingent forward contract liability into Series E convertible preferred shares. The Company recorded a loss of $109.7 million related to fair value remeasurements of the Series E contingent forward contracts during the year ended December 31, 2020. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 Series E convertible preferred share at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to enter into the fourth closing to purchase up to 8,977,769 shares of Series E convertible preferred shares on a pro rata basis at $7.90 per share, aggregating to $71.0 million. In addition, the amendment allowed the Company to offer for purchase at the fourth closing at $7.90 per share, a number of Series E Preferred Shares to senior management employees, directors, consultants, advisors and/or contractors of the Company (“Additional Purchaser”) and Ayar. Refer to Note 7 “Convertible Preferred Share and Shareholders’ Deficit”. In April 2021, the Company issued 25,306,130 Series E convertible preferred shares from the fourth closing at $7.90 per share for cash consideration of $200.0 million. The Company received $107.1 million of the total issuance proceeds in March 2021 and the remaining $92.9 million in April 2021 (refer to Note 7 “Convertible Preferred Shares and Shareholders’ Deficit”). The Company determined the right to participate in future Series E convertible preferred share financing to be a freestanding financial instrument similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $1.4 billion and $722.4 million for the third closing and fourth closing, respectively, as contingent forward contract liabilities. Since the contingent forward contract liability related to the third closing was fully settled in the same month following the execution of the amendment, the Company recorded no related fair value remeasurements in the consolidated statements of operations. The Company issued Offer Notices to certain of the Company’s management and members of the Board of Directors in March 2021 and April 2021. The Series E convertible preferred shares issued from the fourth closing included 1,147,577 shares to the Company’s management and 627,347 shares to members of the Board of Directors. The total issuance to the Company’s management includes 202,449 shares offered to the CEO in April 2021. The offer to employees in the fourth closing to participate in future Series E convertible preferred shares financing represent a fully vested, equity classified award. The award’s full fair value on each recipient’s grant date was recorded as share-based compensation, and the related contingent forward contract liability was derecognized. The Company revalued the contingent forward contract liability for the remaining participants and recorded $12.4 million and $454.5 million fair value remeasurement loss related to the contingent forward contract liability for the three and six months ended June 30, 2021, respectively. Final fair value of the contingent forward contract liability of $1.2 billion was reclassified into Series E convertible preferred shares upon the fourth closing in April 2021. There was no related outstanding contingent forward contract liability as of June 30, 2021. The fair value of the Series E convertible preferred share contingent forward contract liability for the third closing was determined using Forward Payoff. The Company’s inputs used in determining the fair value on the issuance date and settlement date, were as follows: Stock Price $ 36.45 Volatility 100 % Expected term 0.01 Years Risk-free rate 0.03 % The fair value of the Series E convertible preferred share contingent forward contract liability for the fourth closing was determined using Forward and an Option Payoff. The Company’s inputs used in determining the fair value on the issuance date were as follows: Fair value of Series E convertible preferred share $ 36.45 Volatility 100 % Expected term 0.11 Years Risk-free rate 0.03 % The fair value of the Series E convertible preferred share contingent forward contract liability for the fourth closing on closing date was determined as the difference between the Series E convertible preferred shares fair value and the purchase price. The Company estimated the fair value of each of the Series E convertible preferred shares on the settlement date by taking the closing price of CCIV’s Class A common stock on April 1, 2021 of $23.78 multiplied by the expected exchange ratio, and adjusting down by 5% discount for lack of marketability . | NOTE 6 — CONTINGENT FORWARD CONTRACTS As discussed in Note 5 “Convertible Notes,” in September 2018, the Company entered into a Securities Purchase Agreement with PIF. Along with the execution of the Securities Purchase Agreement, the Company granted PIF the right to purchase the Company’s Series D convertible preferred shares in future periods. The Company determined PIF’s right to participate in future Series D convertible preferred shares financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $18.6 million as a debt discount to the Convertible Notes issued in September 2018. For the detail of the Convertible Notes and interest expense reconciliation, refer to Note 5 “Convertible Notes.” In March 2020, the Company received $200.0 million in exchange for 31,201,245 shares of Series D convertible preferred shares as partial settlement of the Series D contingent forward contract liability and revalued the contingent forward contract liability to the then fair value of $36.4 million and reclassified $18.2 million of the contingent forward contracts liability into Series D convertible preferred shares. In June 2020, upon satisfaction of the second set of milestones (refer to Note 8 “Convertible Preferred Shares and Shareholders’ Deficit”), the Company received the remaining $200.0 million in exchange for 31,201,245 shares of Series D as final settlement of the Series D contingent forward contract liability and revalued the contingent forward contracts liability to the then fair value of $21.4 million and reclassified the liability into Series D convertible preferred shares. The Series D contingent forward contract liability incurred a total fair value loss of $8.7 million during the year ended December 31, 2020. As discussed in Note 8 “Convertible Preferred Shares and Shareholders’ Deficit”, in September 2020, along with the execution of the Securities Purchase Agreement, the Company granted Ayar Third Investment Company (“Ayar”) the right to purchase the Company’s additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred share financing to be freestanding similar to a derivative in the form of contingent forward contracts and recorded the initial valuation of $0.8 million into contingent forward contract liabilities. In December 2020, Ayar waived the Company’s remaining outstanding obligations, and the Company received $400.0 million as the final issuance of Series E convertible preferred shares. Upon the final settlement, the Company revalued the Series E contingent forward contracts to the then fair value of $110.5 million and reclassified the contingent forward contract liability into Series E convertible preferred shares. The Company recorded a loss of $109.7 million related to fair value remeasurements of the Series E contingent forward contracts during the year ended December 31, 2020. The Company’s inputs used in determining the fair value of Series D contingent forward contract liability on the issuance date were as follows: Effective date 9/20/2018 Coupon payment dates Semi-Annual Maturity date 03/20/2020 Initial term 1.5 Years Interest rate (coupon rate) 8.00 % Yield (market rate) 8.00 % Effective interest rate 2.47 % The Company’s inputs used in determining the fair value of Series D convertible preferred share contingent forward contract liability on the settlement date, were as follows: Settlement date 3/31/2020 6/30/2020 Expected term — — Contingent Series D convertible preferred shares fair value (per share) $ 6.99 $ 7.10 Present value factor 1.0000 1.0000 Estimated probability of satisfying milestones 100 % 100 % The Company’s inputs used in determining the fair value of Series E convertible preferred share contingent forward contract liability on the issuance date and settlement date, were as follows: Effective date 9/22/2020 12/31/2020 Expected term 0.25 Years — Contingent Series E convertible preferred shares fair value (per share) $ 7.92 $ 10.09 Present value factor 0.9999 1.0000 Estimated probability of satisfying milestones 95 % 100 % Fair value of the Series D and Series E contingent forward contracts on the issuance date are valued by a third party valuation firm using Probability-Weighted Expected Return Method (“PWERM”) framework, and the Option Pricing Method (“OPM”) to allocate the equity value in the scenarios where the Series D and Series E convertible preferred share additional tranche issuance milestones are satisfied. |
CONVERTIBLE PREFERRED SHARE W_5
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | ||
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | NOTE 6 — CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY In March and September 2017, in connection with the Long-Term Debt to Trinity, the Company issued two convertible preferred share warrants (the “Warrants”) to purchase a total of 585,022 shares of Series D convertible preferred shares, with an exercise price of $5.128 per share. The Warrants are exercisable for 10 years from the date of issuance and expire in 2027 or earlier upon the consummation of an initial public offering (“IPO”). The Company determined that these Warrants met the requirements for liability classification under ASC 480, Distinguishing Liabilities from Equity The fair value of the Warrants was approximately $0.4 million and $0.2 million at the time of issuance in March and September 2017, respectively, calculated using a Monte-Carlo simulation method under the income approach. The Warrants were recorded at fair value at issuance and are subsequently remeasured to fair value each reporting period with the changes recorded in the consolidated statements of operations. As of December 31, 2020, 585,022 shares of the Warrants were outstanding with a fair value of $5.06 per share, and aggregate fair value of $3.0 million. The Company’s assumptions used in determining the fair value of convertible preferred share warrants on December 31, 2020 are as follows: December 31, 2020 Volatility 50.00 % Expected term (in years) 0.5 – 1.5 Risk-free rate 0.09 – 0.12 % Expected dividend rate 0.00 % In February 2021, all the outstanding warrants were settled in its entirety at an exercise price of $5.13 per share for an aggregate purchase price of $3.0 million. Upon final settlement, the Company converted the warrant into $12.9 million Series D convertible preferred shares, and recorded $7.0 million loss related to fair value remeasurements of the warrants in the consolidated statements of operations for the six months ended June 30, 2021. The Company recorded $0.1 million loss related to fair value remeasurements of the warrants for the three and six months ended June 30, 2020. The fair value of the Series D preferred shares that was converted from warrant liability at settlement was estimated using the PWERM framework and considered the same three scenarios and probability for each of the three scenarios used to value our common shares: OPM scenario (20%), as-converted SPAC scenario (70%), and as-converted IPO scenario (10%). Under the OPM scenario, the fair value of Series D convertible preferred shares is a direct output of the model used for the equity valuation of the Company and reflects the present value. Under the as-converted SPAC scenario, the present value of the Series D convertible preferred shares is estimated using the pre-money equity value. Under the as-converted IPO scenario, the Company applies the market-based approach and determines the fair value based on the average revenue multiples derived from our peer group. | NOTE 7 — CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY In March and September 2017, in connection with the Long-Term Debt to Trinity, the Company issued two convertible preferred share warrants (the “Warrants”) to purchase a total of 585,023 shares of Series D convertible preferred shares, with an exercise price of $5.128 per share. The Warrants are exercisable for 10 years from the date of issuance and expire in 2027 or earlier upon the consummation of an initial public offering (“IPO”). The Company determined that these Warrants met the requirements for liability classification under ASC 480, Distinguishing Liabilities from Equity, due to the Warrants holders having a put-right and the Company having an obligation to settle the Warrants by transferring cash. The fair value of the Warrants was approximately $0.4 million and $0.2 million at the time of issuance in March and September 2017, respectively, calculated using a Monte-Carlo simulation method under the income approach. The Warrants were recorded at fair value at issuance and are subsequently remeasured to fair value each reporting period with the changes recorded in the consolidated statements of operations. As of December 31, 2020, and 2019, 585,023 shares of the Warrants were outstanding with a fair value of $10.17 The Company’s assumptions used in determining the fair value of convertible preferred share warrants at December 31, 2020, and 2019 are as follows: As of December 31, 2020 2019 Volatility 50.0 % 55.0 % Expected term (in years) 0.5 – 1.5 2.3 Risk-free rate 0.09 – 0.12 % 1.59 % Expected dividend rate 0.0 % 0.0 % |
CONVERTIBLE PREFERRED SHARES_19
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | ||
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | NOTE 7 — CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT Convertible Preferred Shares Convertible preferred shares are carried at its issuance price, net of issuance costs. In 2014 through June 30, 2021, the Company issued Series A, Series B, Series C, and Series D and Series E convertible preferred shares (“Series A,” “Series B,” “Series C,” “Series D,” “Series E,” respectively) (collectively, the “Convertible Preferred Shares”). In September 2018, concurrent with the execution of the Security Purchase Agreement with PIF, the Company entered into a Share Repurchase Agreement (the “Repurchase Agreement”) with Blitz Technology Hong Kong Co. Limited and LeSoar Holdings, Limited (the “Sellers”) to repurchase Series C convertible preferred shares. From September 2018 to December 31, 2019, the Company repurchased in aggregate Third Company Repurchase (Series C — August 2020) In August 2020, the Company entered into a Share Repurchase Agreement with the Sellers. Pursuant to the Share Repurchase Agreement, the Company agreed to repurchase 3,652,265 shares of Series C convertible preferred shares owned by the Sellers in August 2020 at a price of $2.70 per share for total of $9.9 million. The carrying value of the repurchased Series C convertible preferred shares is $20.4 million. As such, the Company recognized $10.5 million in additional paid-in capital under shareholder’s equity in the consolidated balance sheet as of December 31, 2020 related to the difference in fair value and carrying value of the Series C shares repurchased. Fourth Company Repurchase (Series C — December 2020) In December 2020, the Company entered into a Share Repurchase Agreement with Blitz Technology Hong Kong Co. Limited (“Blitz”). The Company agreed to repurchase 700,000 Series C convertible preferred shares from Blitz at a price of $3.20 per share, aggregating to $2.2 million. As the carrying amount of each share of Series C was $6.41 aggregating to $4.5 million in September 2020, the Company recognized $2.2 million as additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2020, related to the difference in fair value and carrying value of the Series C shares repurchased. Fifth Company Repurchase (Series B — December 2020) On December 22, 2020, the Company entered into an agreement with JAFCO Asia Technology Fund V (“JAFCO”) whereby the Company agreed to repurchase 1,333,333 Series B convertible preferred shares having a carrying value of $4.0 million, from JAFCO for a total consideration of $3.0 million. The agreement resulted in an extinguishment of the Series B convertible preferred shares and the Company recognized $1.0 million in additional paid-in capital being the difference in fair value of the consideration payable and the carrying value of the Series B convertible preferred shares. As of the date of extinguishment and as of December 31, 2020 the Series B convertible preferred shares subject to repurchase are mandatorily redeemable within 45 days of the agreement and accordingly have been reclassified to other accrued liabilities on the consolidated balance sheets. Series D Preferred Share Issuance In 2018, the Security Purchase Agreement with PIF granted PIF rights to purchase the Company’s Series D convertible shares at various tranches. The first tranche of $200.0 million is issuable upon the approval of the PIF’s equity investment into the Company by CFIUS (refer to Note 5 In April 2019, upon CFIUS’s approval of PIF’s equity investment into the Company, the Company received the first $200.0 million proceeds from PIF. In October 2019, the Company received additional $400.0 million upon achieving the first set of milestones. Together with the conversion of $272.0 million Convertible Notes and accrued interest, the Company issued 141,746,324 shares of Series D convertible preferred shares at a price of $6.15 per share, for net proceeds of approximately $872.0 million during the year ended December 31, 2019. In March 2020, the Company received $200.0 million of the remaining $400.0 million in proceeds from PIF and issued 31,201,245 shares of Series D in exchange. In June 2020 the Company successfully satisfied certain of the second set of milestones related to further development and enhancement in marketing, product, and administrative activities, and received a waiver from PIF for the remaining milestones. The Company received the remaining $200 million proceeds in exchange for 31,201,256 shares of Series D convertible preferred shares. See activities related to the PIF Convertible Notes and Series D convertible preferred share funding as below (in thousands): Conversion of Convertible Notes $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series D received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,564 Conversion of preferred stock warrant to Series D in February 2021 3,000 Reclassification of preferred stock warrant liability to Series D in February 2021 9,936 Total proceeds of Series D $ 1,324,485 Series E convertible preferred share Issuance In September 2020 the Company entered into an arrangement with Ayar to issue and sell Series E convertible preferred shares pursuant to a securities purchase agreement (the “SPAE”). Along with the execution of the SPAE, the Company granted Ayar the right to purchase additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred share financing to be freestanding, similar to a derivative in the form of contingent forward contracts, and recorded the initial valuation of $0.8 million as a contingent forward contract liability. The contingent forward contract terms were included within the SPAE, which dictated a price of $7.90 per share of Series E convertible preferred shares. The Company needed to satisfy two sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities for Ayar to provide funding under the SPAE. Immediately upon closing of the SPAE, the Company received the full first tranche of $500.0 million in funding in exchange for 63,265,327 Series E convertible preferred shares as the requirement for the first milestones were met prior to execution of the purchase agreement. Subsequently, the Company successfully satisfied certain of the second set of milestones and received a waiver from PIF for the remaining milestones; and on December 24, 2020, the investor provided $400.0 million of funding in exchange for 50,612,262 shares as the final issuance of Series E convertible preferred shares related to the second milestones. Upon final settlement, the Company re-valued the liability associated with the contingent forward contract to the then fair value of $110.5 million from a contingent liability of $0.8 million and derecognized the liability as the contract was settled in its entirety. The Company recognized the increase in fair value of $109.7 million in the consolidated statements of operations and reclassified the liability into convertible preferred shares on the Company’s consolidated balance sheets as of December 31, 2020. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 shares of Series E convertible preferred shares at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to enter into the fourth closing to purchase up to 8,977,769 shares of Series E convertible preferred share on a pro rata basis at $7.90 per share, aggregating to $71.0 million. In addition, the amendment allowed the Company to offer for purchase at the fourth closing at $7.90 per share, a number of Series E Preferred Shares to senior management employees, directors, consultants, advisors and/or contractors of the Company (“Additional Purchasers”). The aggregate number of Series E Preferred Shares sold at the third closing and fourth closing will not exceed 75.9 million shares (“Extension Amount”). Ayar committed to purchase the entire Extension Amount to the extent not subscribed by Eligible Holders or Additional Purchasers. In April 2021, the Company issued 25,306,130 Series E convertible preferred shares from the fourth closing at $7.90 per share for cash consideration of $200.0 million. The Company received $107.1 million of the entire cash consideration in March 2021, and the remaining $92.9 million in April 2021. The Company issued Offer Notices to certain of the Company’s management and members of the Board of Directors in March 2021 and April 2021. The Series E convertible preferred shares issued from the fourth closing included 1,147,577 shares to the Company’s management and 627,347 shares to members of the Board of Directors. The total issuance to the Company’s management includes 202,449 shares offered to the CEO in April 2021. The offer to employees to participate in a future Series E convertible preferred share financing represented a fully vested, equity classified award. The excess of the award’s fair value over the purchase price of $20.7 million and $123.6 million on each recipient’s grant date during the three months and six months ended June 30, 2021 was recorded as share-based compensation. Along with the execution of Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred shares to 498,017,734 and 437,182,072 shares, respectively. As of June 30, 2021 and December 31, 2020, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of June 30, 2021 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 8,000,000 8,000,000 23,740 3.00 3.00 24,000 Series C 22,532,244 22,532,244 137,475 6.41 6.41 144,432 Series D 204,733,847 204,733,847 1,324,485 6.15 9.62 1,969,540 Series E 189,795,981 189,795,981 4,339,160 7.90 11.85 2,249,082 Total 437,182,072 437,182,072 $ 5,836,785 $ 4,399,174 As of December 31, 2020 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 * As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. The significant rights and preferences of the outstanding convertible preferred shares are as follows: Dividends — Liquidation Preference — to the amounts which would be payable in respect of the Series E and Series D convertible preferred shares held by them upon such distribution if all amounts payable on or with respect to said shares were paid in full. Upon completion of the full distribution required above, the remaining assets of the Company available for distribution to members shall be distributed pari passu among the holders of common shares pro rata based on the number of the common shares held by each member. Voting Rights — Conversion — Series B Series C Series D Series E Antidilution Adjustment — Common Shares No dividends other than those payable solely in common shares shall be paid on any common share, unless and until (i) the dividends are paid on each outstanding share of convertible preferred share and (ii) a dividend is paid with respect to all outstanding convertible preferred shares in an amount equal to or greater than the aggregate amount of dividends, which would be payable on each convertible preferred share, if immediately prior to such payment on common shares, it had been converted into common shares. Common Share Reserved for Issuance The Company’s common shares reserved for future issuances as of June 30, 2021 and December 31, 2020, are as follows: June 30, December 31, 2021 2020 Convertible preferred shares outstanding 437,182,072 362,011,991 Share options outstanding 26,099,336 26,730,453 Restricted stock unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Shares available for future grants 4,469,725 3,981,178 Total common shares reserved 483,514,731 393,308,644 | NOTE 8 — CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT Convertible Preferred Shares Convertible preferred shares are carried at its issuance price, net of issuance costs. In 2014 through 2020, the Company issued Series A, Series B, Series C, and Series D and Series E convertible preferred shares (“Series A,” “Series B,” “Series C,” “Series D,” “Series E,” respectively) (collectively, the “Convertible Preferred Shares”). In September 2018, concurrent with the execution of the Security Purchase Agreement with PIF, the Company entered into a Share Repurchase Agreement (the “Repurchase Agreement”) with Blitz Technology Hong Kong Co. Limited and LeSoar Holdings, Limited (the “Sellers”) to repurchase Series C convertible preferred shares as follows: First Company Repurchase Concurrent with the execution of the Security Purchase Agreement with PIF, $10.0 million of the proceeds from the issuance of the Convertible Notes were utilized to repurchase from the Sellers 714,286 shares of Series C at $14.00 per share. As the carrying amount of each share of Series C was $6.41 with an aggregate carrying amount of Series C repurchased at $4.6 million, the Company recognized $5.4 million as a reduction of additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2018, related to the excess fair value paid over carrying amount. Second Company Repurchase The Company agreed to repurchase 4,642,857 shares of Series C from the Sellers at a price equal to $14.00 per share, aggregating to $65.0 million on a date that is no later than 6 months from April 2019 (subject to contingencies defined within the Security Purchase Agreement with PIF) of the Series D Preferred Financing. The Repurchase Agreement substantially modified the terms of the Series C shares subject to repurchase and constitutes an extinguishment. The Company used the put option pricing model to compute the fair value of the contingent ‘Second Company Repurchase’ feature (“contingent repurchase feature”) and applied a 95% probability of successfully achieving the contingencies. Fair value of the contingent repurchase feature was $10.03 per share. The key inputs used in determining the fair value of the contingent repurchase feature as of the extinguishment date in September 2018, are as follows: Effective date 9/30/2018 Current price $ 3.28 Exercise price $ 14.0 Initial term 0.5 Years Volatility 55.00 % Risk free rate 2.36 % Dividend yield 0.00 % The fair value of the Series C preferred shares prior to extinguishment was $3.28 per share and was computed based on the Probability-Weighted Expected Return Method (PWERM) framework, using the Option Pricing Method (OPM) to allocate the equity value in the scenarios where CFIUS approval is received. The range of inputs for the various scenarios used in determining the fair value of the Series C convertible preferred shares using OPM as of the extinguishment date in September 2018, is as follows: Price per share $ 5.45 – 6.41 Term 1.7 – 2.4 Years Volatility 55.00 % Risk free rate 2.71% – 2.81% The fair value of the Series C preferred shares after the extinguishment was determined as $13.31 per share and was computed as the sum of the fair value of Series C of $3.28 per share as of the extinguishment date and the fair value of the contingent repurchase feature of $10.03 per share. As the carrying amount of each share of Series C was $6.41 in September 2018 with an aggregate carrying amount of Series C shares extinguished at $32.0 million, the Company recognized $9.4 million as a reduction of additional paid-in capital and the remaining $22.6 million as an increase to accumulated deficit under shareholders’ equity in the consolidated balance sheet as of December 31, 2018 as the Company did not have sufficient additional paid-in capital as of the extinguishment date to offset the excess of the fair value over the carrying amount. In June 2019, the Company and the Sellers amended and restated the September 2018 Repurchase Agreement related to the Second Company Repurchase. Pursuant to the terms, the Company repurchased 3,571,429 shares of Series C at $14.00 per share and the remaining 1,071,428 shares subject to the Second Company Repurchase were extinguished and the Company was released of any and all obligation to purchase any shares in excess of the 3,571,429 subject to redemption. As the carrying amount of each share of Series C was $13.31 in June 2019 and the total carrying amount of Series C repurchased was $47.5 million, the Company recognized $2.5 million as additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2019, related to the excess of fair value paid over carrying amount. The carrying amount of 1,071,428 shares extinguished in June 2019 was $14.3 million and the fair value was $3.60 per share, the Company recognized $10.4 million as an increase to additional paid in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2019, related to the difference between fair value after extinguishment and carrying amount. The fair value of the Series C preferred shares after extinguishment in June 2019 was $3.60 per share and was computed based on the PWERM framework, using the OPM to allocate the equity value in the scenarios where CFIUS approval is received and the Current Value Method or CVM to allocate the equity value in the scenario where CFIUS approval is not received. The range of inputs for the various scenarios used in determining the fair value of the Series C convertible preferred shares using OPM as of the extinguishment date, in June 2019, was as follows: Price per share $ 6.41 Term 1.7 – 2.3 Years Volatility 55.00 % Risk free rate 1.59% – 2.71% Third Company Repurchase (Series C — August 2020) In August 2020, the Company entered into a Share Repurchase Agreement with the Sellers. Pursuant to the Share Repurchase Agreement, the Company agreed to repurchase 3,652,265 shares of Series C convertible preferred shares owned by the Sellers in August 2020 at a price of $2.70 per share for total of $9.9 million. The carrying value of the repurchased Series C convertible preferred shares is $20.4 million. As such, the Company recognized $10.5 million in additional paid-in capital under shareholder’s equity in the consolidated balance sheet as of December 31, 2020 related to the difference in fair value and carrying value of the Series C shares repurchased. Fourth Company Repurchase (Series C — December 2020) In December 2020, the Company entered into a Share Repurchase Agreement with Blitz Technology Hong Kong Co. Limited (“Blitz”). The Company agreed to repurchase 700,000 Series C convertible preferred shares from Blitz at a price of $3.20 per share, aggregating to $2.2 million. As the carrying amount of each share of Series C was $6.41 aggregating to $4.5 million in September 2020, the Company recognized $2.2 million as additional paid-in capital under shareholders’ equity in the consolidated balance sheet as of December 31, 2020, related to the difference in fair value and carrying value of the Series C shares repurchased. Fifth Company Repurchase (Series B — December 2020) On December 22, 2020, the Company entered into an agreement with JAFCO Asia Technology Fund V (“JAFCO”) whereby the Company agreed to repurchase 1,333,333 Series B convertible preferred shares having a carrying value of $4.0 million, from JAFCO for a total consideration of $3.0 million. The agreement resulted in an extinguishment of the Series B convertible preferred shares and the Company recognized $1.0 million in additional paid-in capital being the difference in fair value of the consideration payable and the carrying value of the Series B convertible preferred shares. As of the date of extinguishment and as of December 31, 2020 the Series B convertible preferred shares subject to repurchase are mandatorily redeemable within 45 days of the agreement and accordingly have been reclassified to other accrued liabilities on the consolidated balance sheets. Series D Preferred Share Issuance In 2018, the Security Purchase Agreement with PIF granted PIF rights to purchase the Company’s Series D convertible shares at various tranches. The first tranche of $200.0 million is issuable upon the approval of the PIF’s equity investment into the Company by CFIUS (refer to Note 5 In April 2019, upon CFIUS’s approval of PIF’s equity investment into the Company, the Company received the first $200.0 million proceeds from PIF. In October 2019, the Company received additional $400.0 million upon achieving the first set of milestones. Together with the conversion of $272.0 million Convertible Notes and accrued interest, the Company issued 141,746,324 shares of Series D at a price of $6.15 per share, for net proceeds of approximately $872.0 million during the year ended December 31, 2019. The Company recorded $10.2 million of share issuance costs for Series D as noncurrent assets in the consolidated balance sheet as of December 31, 2018 and subsequently reclassified this amount to contra convertible preferred shares when Series D was funded in 2019. An additional $0.3 million of Series D share issuance cost was incurred in 2019 and was recorded as an issuance cost in additional paid in capital to offset the proceeds from Series D. In March 2020, the Company received $200.0 million of the remaining $400.0 million in proceeds from PIF and issued 31,201,245 shares of Series D in exchange. In June 2020 the Company successfully satisfied certain of the second set of milestones related to further development and enhancement in marketing, product, and administrative activities, and received a waiver from PIF for the remaining milestones. The Company received the remaining $200 million proceeds in exchange for 31,201,245 See activities related to the PIF Convertible Notes and Series D convertible preferred share funding as below (in thousands): Conversion of Convertible Notes (Note 5) $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,563 Total proceeds of Series D $ 1,311,548 Series E convertible preferred share Issuance On September 21, 2020 the Company entered into an arrangement with Ayar to issue and sell Series E convertible preferred shares pursuant to a securities purchase agreement (the “SPAE”). Along with the execution of the SPAE, the Company granted Ayar the right to purchase additional Series E convertible preferred shares upon the Company’s satisfaction of certain milestones in November 2020. The Company determined Ayar’s right to participate in future Series E convertible preferred share financing to be freestanding, similar to a derivative in the form of contingent forward contracts, and recorded the initial valuation of $0.8 million as a contingent forward contract liability. The contingent forward contract terms were included within the SPAE, which dictated a price of $7.90 per share of Series E convertible preferred. The Company needed to satisfy two sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities for Ayar to provide funding under the SPAE. Immediately upon closing of the SPAE, the Company received the full first tranche of $500.0 million in funding in exchange for 63,265,327 Series E convertible preferred shares as the requirement for the first milestones were met prior to execution of the purchase agreement. Subsequently, the Company successfully satisfied certain of the second set of milestones and received a waiver from PIF for the remaining milestones; and on December 24, 2020, the investor provided $400.0 million of funding in exchange for 50,612,262 shares as the final issuance of Series E convertible preferred shares related to the second milestones. Upon final settlement, the Company re-valued the liability associated with the contingent forward contract to the then fair value of $110.5 million from a contingent liability of $0.8 million and derecognized the liability as the contract was settled in its entirety. The Company recognized the increase in fair value of $109.7 million in the consolidated statements of operations and reclassified the liability into convertible preferred shares on the Company’s consolidated balance sheets as of December 31, 2020. As of December 31, 2020, and 2019, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of December 31, 2020 Conversion Price Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 *As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. As of December 31, 2019 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 9,333,333 9,333,333 27,740 3.00 3.00 28,000 Series C 31,170,225 26,884,509 162,360 6.41 6.41 172,331 Series D 234,009,360 141,746,324 871,985 6.15 9.62 1,362,891 Total 286,632,918 190,084,166 $ 1,074,010 $ 1,575,342 The significant rights and preferences of the outstanding convertible preferred shares are as follows: Dividends — Liquidation Preference — Upon completion of the full distribution required above, the remaining assets of the Company available for distribution to members shall be distributed pari passu among the holders of common shares pro rata based on the number of the common shares held by each member. Voting Rights — Conversion — one (1) outstanding Antidilution Adjustment — Common Shares No dividends other than those payable solely in common shares shall be paid on any common share, unless and until (i) the dividends are paid on each outstanding share of convertible preferred share and (ii) a dividend is paid with respect to all outstanding convertible preferred shares in an amount equal to or greater than the aggregate amount of dividends, which would be payable on each convertible preferred share, if immediately prior to such payment on common shares, it had been converted into common shares. Common Shares Reserved for Issuance The Company’s common shares reserved for future issuances as of December 31, 2020 and 2019, are as follows: As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Shares available for future grants 3,981,178 7,336,862 Total common shares reserved 393,308,645 224,218,549 |
SHARES-BASED AWARDS_2
SHARES-BASED AWARDS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SHARES-BASED AWARDS | ||
SHARES-BASED AWARDS | NOTE 8 — SHARES-BASED AWARDS Share Incentive Plans and Share Option Grants to Employees and Directors In 2009, the Company adopted the 2009 Share Plan (the “2009 Plan”). In 2014, in connection with the Series C convertible preferred share financing, the Company adopted the 2014 Share Plan (the “2014 Plan”). Both the 2009 Plan and the 2014 Plan provide for the granting of incentive and non-statutory share options to directors, officers, employees, and consultants. Under the 2009 Plan and the 2014 Plan, the Company may grant options to purchase up to 5,000,000 and 31,884,190 common shares, respectively, at prices not less than the fair market value (FMV) at the date of grant, with limited exceptions. These options generally expire 10 years from the date of grant and are exercisable when the options vest. Incentive share options and non-statutory options generally vest over four years, the majority of which vest at a rate of 25% on the first anniversary of the grant date, with the remainder vesting ratably each month over the next three years. In January 2021, the Company’s Board of Directors approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan replaced the 2009 Plan and 2014 Plan. 3,981,178 shares reserved for future issuance under 2009 Plan and 2014 Plan were removed and added to share reserve under the 2021 Plan. If outstanding share awards issued under the 2009 Plan and 2014 Plan 1) expire or terminate for any reason prior to exercise or settlement, 2) are forfeited, canceled or otherwise returned to the Company because of the failure to meet vesting conditions, or 3) are reacquired, withheld to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a share award (collectively, the “Returning Shares”), will be added back to the 2021 Plan. The 2021 Plan provides for the grant of incentive share options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of non-statutory share options, restricted shares, Restricted Stock Units (RSU), share appreciation rights, performance based awards and cash based awards to the Company’s employees, directors, and consultants and its parent and subsidiary corporations’ employees and consultants. The 2021 Plan became effective in January 2021. 16,616,225 shares were authorized to issue under the 2021 Plan. In January 2021, the Company also increased the number of shares reserved for issuance under the 2014 Share Plan by 2,033,333 shares which was transferred to the 2021 Plan. As of June 30, 2021, 4,469,725 shares were remaining under the 2021 Plan. No shares were A summary of share option activity under the 2009 Plan, the 2014 Plan, and the 2021 Plan is as follows: Outstanding Options Weighted- Weighted Average Intrinsic Average Remaining Value Number of Exercise Contractual (in Options Price Term thousands) Balance – December 31, 2020 26,730,453 $ 2.21 7.8 $ 118,155 Options granted 3,177,756 7.51 Options exercised (3,028,530) 1.74 Options canceled (780,343) 3.13 Balance – June 30, 2021 26,099,336 $ 1.80 8.5 $ 2,491,171 Options vested and exercisable June 30, 2021 14,842,155 $ 1.88 6.6 $ 883,724 Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of common shares. The aggregate intrinsic value of options exercised was approximately $102.5 million for the six months ended June 30, 2021,and The total fair value of share options granted during the six months ended June 30, 2021 and 2020, was approximately $23.9 million and $10.1 million, respectively, which is being recognized over the respective vesting periods. The total fair value of share options vested during the six months ended June 30, 2021 and 2020, was approximately $3.1 million and $1.8 million, respectively. The unamortized share-based compensation for the six months ended June 30, 2021 was approximately $817.2 million, and weighted average remaining amortization period as of June 30, 2021 was 3.9 years. The Black-Scholes Model used to value share options incorporates the following assumptions: Volatility — Risk-Free Interest Rate — Expected Life — Dividend Yield — The Company estimates the fair value of the options utilizing the Black-Scholes option pricing model, which is dependent upon several variables, such as the expected option term, expected volatility of the Company’s share price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of share options granted to employees and directors that are subject to ASC 718, Compensation — Stock Compensation A summary of the assumptions the Company utilized to record compensation expense for share options granted during the three and six months ended June 30, 2021 and 2020, is as follows: Six Months Ended June 30, 2021 2020 Weighted average volatility 41.9 % 42.7 % Expected term (in years) 5.9 6.0 Risk-free interest rate 0.6 % 1.1 % Expected dividends — — A summary of RSU award activity under the 2021 Plan is as follow: Restricted Stock Units Weighted- Performance- Average Time-Based Based Total Grant-Date Shares Shares Shares Fair Value Nonvested balance as of December 31, 2020 — — — $ — Granted 9,729,078 6,060,670 15,789,748 50.71 Cancelled/Forfeited (26,150) — (26,150) 56.06 Nonvested balance as of June 30, 2021 9,702,928 6,060,670 15,763,598 $ 50.70 Time-based RSUs vest based on a performance condition and a service condition. The performance condition will be satisfied upon the Closing of the merger with CCIV, and service condition will be met generally over 4.0 years. The Company granted 5,232,507 shares of the time-based RSUs to the CEO. Subject to the CEO’s continued employment on each vesting date, the CEO’s time-based RSUs will vest in sixteen equal quarterly installments beginning on the first Vesting date that is at least two months following the Closing. The service condition for 25% of the Company’s non-CEO RSUs will be satisfied 375 days after the Closing. The remaining RSUs will be satisfied in equal quarterly installments thereafter, subject to continuous employment. The fair value of these award is estimated on the date of grant based on the market price of the CCIV’s stock times the actual exchange ratio on the Closing, discounted for lack of marketability. All performance-based RSUs are granted to the CEO. The CEO performance RSUs will vest subject to the performance and market conditions. The performance condition will be satisfied upon the Closing of the merger. The market conditions will be satisfied and vest in five tranches based on the achievement of market capitalization goals applicable to each tranche over any six-month period subject to the CEO’s continued employment through the applicable vesting date. Any CEO performance RSUs that have not vested within five years after the Closing of the merger will be forfeited. The fair value of these award is estimated on the grant date using Monte Carlo simulation model, and used the following assumptions for the six months ended June 30, 2021: Six Months Ended June 30, 2021 Weighted average volatility 60.0 % Expected term (in years) 5.0 Risk-free interest rate 0.9 % Expected dividends — The Company recognizes compensation expense on a graded vesting schedule over the requisite vesting period for the time-based award. Stock-based compensation expense is recognized when the relevant performance condition is considered probable of achievement for the performance-based award. For the six months ended June 30, 2021, no compensation expense was recognized as the different vesting conditions were not met, and the performance condition cannot be deemed probable until the Closing occurs. Total employee and nonemployee share-based compensation expense, including that related to the extended exercise terms for senior management and consultants for the three and six months ended June 30, 2021 and 2020, is classified in the consolidated statements of operations as follows (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Research and development $ 13,539 $ 552 $ 26,703 $ 1,393 Selling, general and administrative 10,910 458 102,541 588 Total $ 24,449 $ 1,010 $ 129,244 $ 1,981 Total share-based compensation expense for the three and six months periods includes the $20.7 million and $123.6 million share-based compensation expense, respectively, related to the Series E convertible preferred shares issuance in March 2021 and April 2021. Refer to Note 5 “Contingent Forward Contracts” and Note 7 “Convertible Preferred Shares and Shareholders Deficit” for further detail. | NOTE 9 — SHARES-BASED AWARDS Share Incentive Plans and Share Option Grants to Employees and Directors In 2009, the Company adopted the 2009 Share Plan (the “2009 Plan”). In 2014, in connection with the Series C convertible preferred share financing, the Company adopted the 2014 Share Plan (the “2014 Plan”). Both the 2009 Plan and the 2014 Plan provide for the granting of incentive and non-statutory share options to directors, officers, employees, and consultants. Under the 2009 Plan and the 2014 Plan, the Company may grant options to purchase up to 5,000,000 and 31,884,190 common shares, respectively, at prices not less than the fair market value (FMV) at the date of grant, with limited exceptions. These options generally expire 10 years from the date of grant and are exercisable when the options vest. Incentive share options and non-statutory options generally vest over four years, the majority of which vest at a rate of 25% on the first anniversary of the grant date, with the remainder As of December 31, 2020, nil and 3,981,178 shares were remaining under the 2009 Plan and the 2014 Plan, respectively, for future grant. As of December 31, 2019, nil and 7,336,862 shares were remaining under the 2009 Plan and the 2014 Plan, respectively, for future grant. A summary of share option activity under the 2009 Plan and the 2014 Plan is as follows: Outstanding Options Weighted- Weighted Average Average Remaining Intrinsic Shares Available for Number of Exercise Contractual Value (in Grant Options Price Term thousands) Balance – January 1, 2019 19,257,865 14,716,256 $ 1.06 6.37 $ 12,341 Options granted (12,943,015) 12,943,015 2.19 Options exercised — (424,761) 1.22 Options canceled 1,022,012 (1,022,012) 1.92 Balance – December 31, 2019 7,336,862 26,212,498 $ 1.58 6.27 $ 21,236 Options granted (9,009,210) 9,009,210 3.06 Options exercised — (2,837,729) 1.15 Options canceled 5,653,526 (5,653,526) 1.17 Balance – December 31, 2020 3,981,178 26,730,453 $ 2.21 7.79 $ 118,155 Options vested and exercisable December 31, 2020 26,111,472 $ 1.75 6.75 $ 75,944 Aggregate intrinsic value represents the difference between the exercise price of the options and the estimated fair value of common shares. The aggregate intrinsic value of options exercised was approximately $8.3 million and $0.4 million in 2020 and 2019, respectively. The total fair value of share options granted during the years ended December 31, 2020 and 2019, was approximately $14.8 million and $13.9 million, respectively, which is being recognized over the respective vesting periods. The total fair value of share options vested during the years ended December 31, 2020 and 2019, was approximately $3.9 million and $6.9 million, respectively. The unamortized share-based compensation for the years ended December 31, 2020 and 2019, was approximately $14.9 million and $6.6 million, and weighted average remaining amortization period as of December 31, 2020 and 2019 was 3.0 years and 2.7 years, respectively. The Black-Scholes Model used to value share options incorporates the following assumptions: Volatility — Risk-Free Interest Rate — Expected Life — Dividend Yield — The Company estimates the fair value of the options utilizing the Black-Scholes option pricing model, which is dependent upon several variables, such as the expected option term, expected volatility of the Company’s share price over the expected term, expected risk-free interest rate over the expected option term, expected dividend yield rate over the expected option term, and an estimate of expected forfeiture rates. The Company believes this valuation methodology is appropriate for estimating the fair value of share options granted to employees and directors that are subject to ASC 718, Compensation — Stock Compensation, requirements. These amounts are estimates and, thus, may not be reflective of actual future results, nor amounts ultimately realized by recipients of these grants. A summary of the assumptions the Company utilized to record compensation expense for share options granted during the years ended December 31, 2020 and 2019, is as follows: Year Ended December 31, 2020 2019 Weighted average volatility 58.98 % 42.77 % Expected term (in years) 5.9 5.5 Risk-free interest rate 0.75 % 2.11 % Expected dividends — — The Company recognizes compensation on a straight-line basis over the requisite vesting period for each award. During the year ended December 31, 2019, the Company granted 6.7 million options to senior management with an extended post-termination exercise term. The extended option exercise period for those options is the earliest of option expiration date, the first anniversary of a qualified IPO, or closing of a change of control. The Company also used the Black-Scholes option-pricing model to value the options with extended exercise term resulting in grant date fair value of $2.7 million in 2019, which were also expensed over the requisite vesting period for each award. In accordance with ASC 718-10-20, the change of control and IPO events are considered performance conditions and are not deemed probable until they occur, therefore the Company determined the expected life of the awards was 10 years, or equal to the contractual life, for use in the Black Scholes model. No such options were granted in 2020. Following are the assumptions used in the valuation of these options: For the Year Ended December 31, 2019 Volatility 47.5 % Expected terms (in years) 10 Risk-free interest rate 2.59 % Expected dividends — Total employee and nonemployee share-based compensation expense, including that related to the extended exercise terms for senior management and consultants for the years ended December 31, 2020 and 2019, is classified in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2020 2019 Cost of revenue $ 213 $ 443 Research and development 3,724 4,770 Selling, general and administrative 677 2,506 Total $ 4,614 $ 7,719 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | NOTE 9 — LEASES The Company has entered into various non-cancellable operating and finance lease agreements for certain of the Company’s offices, manufacturing and warehouse facilities, retail and service locations, equipment, vehicles, and solar energy systems, worldwide. The Company has determined if an arrangement is a lease, or contains a lease, at inception and record the leases in the Company’s financial statements upon later of ASC 820 adoption date of January 1, 2021, or lease commencement, which is the date when the underlying asset is made available for use by the lessor. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Certain operating leases provide for annual increases to lease payments based on an index or rate. The Company estimates the annual increase in lease payments based on the index or rate at the lease commencement date, for both the Company’s historical leases and for new leases commencing after January 1, 2021. Differences between the estimated lease payment and actual payment are expensed as incurred. Lease expense for finance lease payments is recognized as amortization expense of the finance lease ROU asset and interest expense on the finance lease liability over the lease term. The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s consolidated balance sheet (in thousands): As of June 30, 2021 Operating leases: Operating lease right-of-use assets $ 126,655 Other current liabilities $ 11,620 Other long-term liabilities 152,639 Total operating lease liabilities $ 164,259 Finance leases: Property, plant and equipment, net 6,442 Total finance lease assets $ 6,442 Finance lease liabilities, current portion $ 2,572 Finance lease liabilities, net of current portion 3,963 Total finance lease liabilities $ 6,535 The components of lease expense are as follows within the Company’s consolidated statement of operations (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Operating lease expense: Operating lease expense (1) $ 7,219 $ 13,522 Variable lease expense 579 1,159 Finance lease expense: Amortization of leased assets $ 637 $ 1,232 Interest on lease liabilities 104 213 Total finance lease expense $ 741 $ 1,445 Total lease expense $ 8,539 $ 16,126 (1) Includes short-term leases, which are immaterial. Other information related to leases where the Company is the lessee is as follows: As of June 30, 2021 Weighted-average remaining lease term (in years): Operating leases 8.2 Finance leases 2.5 Weighted-average discount rate: Operating leases 11.03 % Finance leases 6.65 % Supplemental cash flow information related to leases where the Company is the lessee is as follows (in thousands): Six Months Ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,742 Operating cash flows from finance leases (interest payments) 213 Financing cash flows from finance leases 1,364 Leased assets obtained in exchange for new operating lease liabilities 43,780 Leased assets obtained in exchange for new finance lease liabilities 4,437 As of June 30, 2021, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) are as follows (in thousands): Operating Finance Leases Leases Six months ending June 30, 2021 $ 14,825 $ 1,496 2022 31,431 2,810 2023 30,577 2,457 2024 30,822 318 2025 29,778 — Thereafter 121,109 — Total minimum lease payments 258,542 7,081 Less: Interest (94,283) (546) Present value of lease obligations 164,259 6,535 Less: Current portion 11,620 2,572 Long-term portion of lease obligations $ 152,639 $ 3,963 As previously reported in the Company’s audited financial statements for the year ended December 31, 2020 and under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows (in thousands): Operating Finance Leases Leases 2021 $ 25,490 $ 1,729 2022 28,837 1,547 2023 27,633 1,174 2024 28,207 9 2025 27,474 — Thereafter 116,155 — Total minimum lease payments $ 253,796 4,459 Less: Interest (1,202) Present value of lease obligations 3,257 Less: Current portion (1,261) Long-term portion of lease obligations 1,996 |
COMMITMENTS AND CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
COMMITMENTS AND CONTINGENCIES | NOTE 10 — COMMITMENTS AND CONTINGENCIES Contractual Obligations As of June 30, 2021, and December 31, 2020, the Company had $79.2 million and $406.1 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of June 30, 2021, and December 31, 2020. The Company entered into non-cancellable purchase commitment to purchase battery cells over the next 3 years with various vendors. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of June 30, 2021 is set as follows (in thousands): Minimum Purchase Years ended December 31, Commitment 2021 (remainder of the year) $ 104,370 2022 202,400 2023 202,400 Total $ 509,170 In recognition of the CEO’s efforts on the contemplated merger, the board of directors approved a $2 million transaction bonus payable to the CEO, subject to: (1) the Closing of the merger, (ii) the CEO’s continued employment through the closing date and (iii) the CEO’s not giving notice of his intent to resign on or before the closing date. The transaction bonus was paid to the CEO on the first regularly scheduled payroll date after the Closing. Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. There is no material pending or threatened Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to letters of credit and surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $24.6 million and $15.5 million as of June 30, 2021 and December 31, 2020, respectively, for which no liabilities are recorded on the consolidated balance sheets. | NOTE 10 — COMMITMENTS AND CONTINGENCIES Operating Leases and Other Contractual Obligations The Company has various non-cancelable operating leases for its office space, laboratory, and manufacturing and retail facilities. These leases expire at various times through 2030. Certain lease agreements contain renewal options, rent abatement, and escalation clauses. The Company recognizes rent expense on a straight-line basis over the lease term, commencing when the Company takes possession of the property. Certain of the Company’s office leases entitle the Company to receive a tenant allowance from the landlord. The Company records tenant allowance as a deferred rent credit, which the Company amortizes on a straight-line basis, as a reduction of rent expense, over the term of the underlying lease. In 2020 and in 2019, the Company invoked the right for additional tenant improvements of $4.7 million and $8.6 million, respectively, allowed in the original contracts or amended agreements for the corporate headquarters in Newark, California. As of December 31, 2020, and 2019, the Company had $406.1 million and $162.0 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of December 31, 2020, and 2019. In September 2017, the Company entered into an over 10-year lease on an approximately 127,000 square-foot headquarters building, and the lease will expire on September 30, 2030 after the amendment being signed. The Company has committed to pay approximately $0.3 million per month for the building, with 3% annual increases. In September 2018, the Company amended that lease to also include an approximately 300,000 square-foot additional building within the same campus location and extend the term to 12 years, and the lease will expire on September 30, 2030. Under the lease agreement, the Company has committed to pay approximately $0.6 million per month for the additional building, with 3% annual increases on the lease. As of December 31, 2020, and 2019, the landlord provided a tenant improvement allowance for approximately $29.0 million and $24.3 million, respectively, for leasehold improvements in connection with the cost of construction of the initial alterations within the premises. In December 2018, the Company entered into a four-year lease for approximately 500 acres of land in Arizona, on which the Company intends to construct an Arizona plant. Under the lease agreement, the Company is committed to pay $1.8 million per year during the lease term. This rent is paid in arrears. Pursuant to the terms of the lease agreement , the Company has the exclusive option to purchase the Premises (land together with any structures or improvements presently situated thereon or to be constructed thereon) at any time prior to expiration of the lease term for the purchase price to be computed in accordance with the terms and conditions as set forth in the lease agreement. In June 2019, the Company entered into a new lease agreement for a retail location in Beverly Hills, California. The lease commenced on September 1, 2019 and will expire on August 31, 2029. Under the lease agreement, the Company will pay base rent of $0.1 million per month. Base rent is subject to a 3% annual escalation clause during the lease term. From January 2020 to September 2020, the Company entered into nine lease agreements for retail locations in Arizona, California, Florida, New York, and Virginia, with lease expiration dates ranging from March 2025 through December 2032. Base rent for these leases ranges from $0.1 million to $0.4 million per annum, with certain leases having 3% annual base rent escalation clauses during the lease terms. Future minimum payments as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 25,490 2022 28,837 2023 27,633 2024 28,207 2025 27,474 Thereafter 116,155 Total $ 253,796 Rent expense incurred under operating leases was approximately $19.6 million and $18.3 million, for the years ended December 31, 2020 and 2019, respectively. During the year ended 2020, the Company entered into a non-cancellable purchase commitment with a large battery cell supplier to purchase battery cells over the next three years. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of December 31, 2020 is set as follows (in thousands): Minimum Purchase Commitment Year Ending December 31: 2021 $ 101,200 2022 202,400 2023 202,400 Total $ 506,000 Capital Lease During the years ended December 31, 2019 and 2020, the Company acquired equipment under capital lease agreements with an initial term of 36 months. Future minimum payments for the capital lease as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 1,729 2022 1,547 2023 1,174 2024 9 Total capital lease obligations 4,459 Less amounts representing interest (1,202) Capital lease obligations, net of interest $ 3,257 Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of its breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $5.0 |
INCOME TAXES_2
INCOME TAXES | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
INCOME TAX | ||
INCOME TAXES | NOTE 11 — INCOME TAXES The Company’s provision from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, and tax law developments. The Company’s estimated effective tax rate for the year differs from the U.S. statutory rate of 21% because the entity is in a year-to-date and forecasted loss position; therefore, any taxes reported are due to foreign income taxes and state minimum taxes. The Company recorded an income tax provision (benefit) of $0.0 million for the three and six months ended June 30, 2021 , as compared to $(0.0) million and $(0.1) million for the same periods in the prior year. This resulted in an effective tax rate of (0.0)% for the three and six months ended June 30, 2021, and the same periods prior year. The change is primarily due to foreign income taxes, state income taxes, and a decrease in pre-tax income. As of June 30, 2021, and December 31, 2020, the Company had unrecognized tax benefits of $65.4 million and $42.9 million, of which $2.6 million, if recognized for both periods, would favorably impact the Company’s effective tax rate. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months. On June 29, 2020, the California governor signed into law the 2020 Budget Act, which temporarily suspends the utilization of net operating losses and limits the utilization of the research | NOTE 11 — INCOME TAXES Income taxes have been provided in accordance with ASC 740. The components of loss before income taxes for the years ended December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Loss subject to domestic income taxes $ (719,636) $ (277,244) Loss subject to foreign income taxes 68 (90) $ (719,568) $ (277,334) The Company recorded an income tax provision/(benefit) of $(0.19) million and $0.03 million in connection with its domestic state and foreign subsidiaries for the years ended December 31, 2020 and 2019, respectively, as follows (in thousands): 2020 2019 Current Federal $ — $ — State 5 2 Foreign (193) 23 Total current tax expense (benefit) $ (188) $ 25 Deferred Federal $ — $ — State — — Foreign — — Total deferred tax expense (benefit) $ — $ — Total income tax expense (benefit) $ (188) $ 25 The amount of income tax expense (benefit) differs from the expected benefit due to the state income taxes, foreign income taxes, and the impact of the valuation allowance. On December 22, 2017, the US government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the US tax code, including, but not limited to, (1) reducing the US federal corporate tax rate from 35% to 21%; (2) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (3) creating a new limitation on deductible interest expense; (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (5) bonus depreciation that will allow for full expensing of qualified property; (6) establishes new rules with respect to the taxation of certain international transactions, including the income of foreign subsidiaries; and (7) limitations on the deductibility of certain executive compensation. The Tax Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. The Company’s foreign income is in a net loss position and is immaterial to the provision for income taxes, thus no GILTI has been accrued for either 2019 or 2020. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes as of December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 265,799 $ 139,899 Tax credit carryforwards 40,454 18,076 Share-based compensation expense 2,554 4,191 Depreciation 499 210 Accrued compensation and vacation 2,498 699 Interest 489 409 Tenant improvement allowance 8,777 7,757 Accruals and reserves 39,502 3,577 Other 1 — Total deferred tax assets 360,573 174,818 Valuation allowance (360,573) (174,818) Net deferred tax assets — — Net deferred tax assets (liabilities) $ — $ — As of December 31, 2020, and 2019, the Company has no undistributed earnings from its foreign subsidiaries. Accordingly, no deferred tax liability has been established. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized in a particular tax jurisdiction. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. Judgment must be used in considering the relative impact of negative and positive evidence. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and the accumulated deficit, as of December 31, 2020 and 2019, the Company provided a full valuation allowance against its US and state deferred tax assets. The valuation allowance for deferred tax assets was $360.6 million and $174.8 million, as of December 31, 2020 and 2019, respectively. The valuation allowance on our net deferred taxes increased by $185.8 million and increased by $80.7 million during the years ended December 31, 2020 and 2019, respectively. The Company had federal and state net operating loss carryforwards of approximately $960.7 million and $716.1 million, respectively, as of December 31, 2020, which will begin to expire at various dates beginning in 2028, if not utilized. The Company also had federal and state tax research and development tax credit carryforwards of approximately $44.8 million and $36.1 million, respectively. The federal research and development tax credit carryforwards will expire at various dates beginning in 2034, if not utilized. The state research and development tax credit carryforwards do not expire. The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % Share-based compensation (0.2) (0.2) Mark-to-market adjustment (3.4) (1.1) Nondeductible expenses (0.1) (0.8) Tax credits 2.8 1.9 Change in valuation allowance (20.1) (20.8) Provision for income taxes — % — % The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses and certain credits in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses and certain credits may be limited as prescribed under Internal Revenue Code Section 382, which provide for limitations on net operating losses carryforwards and certain built in losses following ownership changes, and Section 383, which provides for special limitations on certain excess credits, etc. (collectively, “IRC Section 382”). Utilization of the carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions, resulting in a reduction in the gross deferral tax assets before considering the valuation allowance. The Company files US, state, and foreign income tax returns with varying statutes of limitations. The federal, state, and foreign returns statute of limitations remains open for tax years from 2008 and thereafter. There are currently no income tax audits underway by US, state, or foreign tax authorities. Uncertain Tax Positions As of December 31, 2020, and 2019, the total amount of unrecognized tax benefits was approximately $42.9 million and $20.6 million, respectively. The Company does not anticipate a significant change in the total amount of unrecognized tax benefits within the next 12 months. The following table summarizes the activity related to unrecognized tax benefits for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Unrecognized benefit – beginning of period $ 20,635 $ 11,647 Gross increases – prior-period tax positions 21 4 Gross decreases – prior-period tax positions (2) — Gross increases – current-period tax positions 22,382 8,995 Gross decrease – current-period tax positions — (11) Statute lapse (142) — Unrecognized benefit – end of period $ 42,894 $ 20,635 Related to the unrecognized tax benefits above, the Company recognized interest expense and penalty expense as part of income tax expenses in the consolidated statements of operations according to the following table (in thousands): Year Ended December 31, 2020 2019 Interest expense $ (45) $ 16 Penalty expense (20) 1 As of December 31, 2020, the Company has recognized a liability for interest expense and penalties of $60 thousand and $9 thousand, respectively, which is included within income tax liabilities in the consolidated balance sheet. |
NET LOSS PER SHARE_2
NET LOSS PER SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
NET LOSS PER SHARE | NOTE 12 — NET LOSS PER SHARE Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (261,726) $ (117,285) $ (1,009,678) $ (246,868) Deemed dividend related to the issuance of Series E convertible preferred shares — — (2,167,332) — Net loss attributable to common shareholders $ (261,726) $ (117,285) $ (3,177,010) $ (246,868) Weighted-average shares outstanding — basic and diluted 13,728,639 8,319,168 13,042,653 8,117,746 Net loss per share: Basic and diluted $ (19.06) $ (14.10) $ (243.59) $ (30.41) The following table sets forth the potential shares of common share as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive: As of June 30, 2021 2020 Convertible preferred shares outstanding 437,182,072 252,486,667 Share options outstanding 26,099,336 22,729,435 Restricted share unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Total 479,045,006 275,801,124 | NOTE 12 — NET LOSS PER SHARE Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2020 2019 Basic and diluted net loss per share Numerator: Net loss $ (719,380) $ (277,357) Deemed contribution related to repurchase of Series B convertible preferred shares 1,000 — Deemed contribution related to repurchase of Series C convertible preferred shares 12,784 7,935 Net loss attributable to common shareholders $ (705,596) $ (269,422) Denominator: Weighted-average shares outstanding – basic 9,389,540 7,789,421 Effect of dilutive potential common shares from share options, share awards and employee share purchase plan — — Weighted-average shares outstanding – diluted 9,389,540 7,789,421 Net loss per share: Basic $ (75.15) $ (34.59) Diluted $ (75.15) $ (34.59) The following table sets forth the potential common shares as of the end of each period presented that are not included in the calculation of diluted net loss per share because to do so would be anti-dilutive: As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Total potential convertible securities to common shares 389,327,467 216,881,686 |
EMPLOYEE BENEFIT PLAN_2
EMPLOYEE BENEFIT PLAN | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
EMPLOYEE BENEFIT PLAN | ||
EMPLOYEE BENEFIT PLAN | NOTE 13 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. The Company made no matching contribution to the 401(k) Plan for the six months ended June 30, 2021 and 2020. | NOTE 13 — EMPLOYEE BENEFIT PLAN The Company has a 401(k) savings plan (the “401(k) Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, participating employees may elect to contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer-matching contribution. The Company made no matching contribution to the 401(k) Plan in 2020 and 2019. |
SUBSEQUENT EVENTS_2
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | ||
SUBSEQUENT EVENTS | NOTE 14 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the three and six months ended June 30, 2021, the Company has evaluated subsequent events for both conditions existing and not existing on June 30, 2021, and concluded there were no subsequent events to recognize in the financial statements. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share (“Common Stock”), and warrants began trading on The Nasdaq Stock Market LLC under the symbols “LCID” and “LCIDW,” respectively. Immediately prior to the Closing, all of Lucid’s preferred shares (the “Lucid Preferred Shares”) then issued and outstanding were converted into Lucid’s common shares, par value $0.0001 per share (the “Lucid Common Shares”) in accordance with the terms of Lucid Group’s Memorandum and Articles of Association, such that each converted Lucid Preferred Share was no longer outstanding and ceased to exist, and each holder thereof thereafter ceased to have any rights with respect to such securities. At the date and time that the business combination became effective, each Lucid Common Share then issued and outstanding was automatically cancelled and the holders of Lucid Common Shares received 2.644 shares of Common Stock in exchange for each Lucid Common Share they held at such time, based on the Equity Value (as defined in the Merger Agreement) of $12.3 billion. The Equity Value equals (a) $11.8 billion plus (b) (i) all cash and cash equivalents of Lucid and its subsidiaries less (ii) all indebtedness for borrowed money of Lucid and its subsidiaries, in each case as of two business days prior to the Closing. The holders of the Lucid Common Shares were issued 1,193,226,511 shares of Common Stock at the Closing. Subsequent to June 30, 2021, the Company entered into new retail lease agreements for various locations. The leases commenced in and after July 2021 and will expire on or before June 2031 | NOTE 15 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the year ended December 31, 2020, the Company has evaluated subsequent events through March 19, 2021, the date the financial statements were available to be issued, for both conditions existing and not existing at December 31, 2020, and concluded there were no subsequent events to recognize in the financial statements. In January 2021, the Company’s board of directors approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan will replace the 2009 Plan and 2014 Plan. 3,981,178 shares reserved for future issuance under 2009 Plan and 2014 Plan will be removed and added to share reserve under the 2021 Plan. If outstanding share awards issued under the 2009 Plan and 2014 Plan 1) expire or terminate for any reason prior to exercise or settlement, 2) are forfeited, canceled or otherwise returned to the Company because of the failure to meet vesting conditions, or 3) are reacquired, withheld to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a share award (collectively, the “Returning Shares”), will be added back to the 2021 Plan. The 2021 Plan provides for the grant of incentive share options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory share options, restricted shares. Restricted Stock Units (RSUs), share appreciation rights, performance based awards and cash based awards to the Company’s employees, directors, and consultants and its parent and subsidiary corporations’ employees and consultants. The 2021 Plan became effective in January 2021. 32,076,334 shares were authorized to issue under the 2021 Plan. In February 2021, the Company entered into new lease agreements for retail locations in Manhasset, New York and in Chicago, Illinois. The leases commenced in February 2021 and will expire on or before January 31, 2031. Under the lease agreements, the Company will pay base rent from $0.5 million to $0.8 million annually. Base rent is subject to a 2.5% annual escalation clause during the lease term. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”) entered into September 2020 (refer to Note 7). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 Series E convertible preferred shares at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to purchase up to 8,977,769 Series E convertible preferred shares on a pro rata basis at $7.90 per share, aggregating to $71.0 million. The Company will issue the Offer Notice to all Eligible Holders two business days following the third closing, and all Eligible Holders have 14 calendar days (the “Exercise Period”) to notice the Company on the number of Series E convertible preferred shares they intend to purchase. Along with the execution of the Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred shares to 498,017,734 and 437,182,072 shares, respectively. On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. In February 2021, the Company’s board of directors granted a total of 1,035,000 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $38.8 million and $44.0 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. Events Subsequent to the Original Issuance of Consolidated Financial Statements (Unaudited) In March 2021, the Company’s board of directors granted a total of 1,066,631 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $53.6 million and $60.7 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. In March 2021, the Company’s board of directors granted a total of 11,293,177 RSUs to its CEO under the 2021 Plan in connection with the proposed merger with CCIV. The CEO RSU Award will be comprised of 5,232,507 RSUs subject to performance and service conditions (the “CEO Time-Based RSUs”) and 6,060,670 RSUs subject to performance and market conditions (the “CEO Performance RSUs”). The aggregate grant date fair value of the CEO RSU Award is estimated to be $556.1 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques, including a Monte Carlo simulation method for awards with market conditions, with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The performance condition of the CEO Time-Based RSUs and CEO Performance RSUs will be satisfied upon the closing of the proposed merger with CCIV. The service condition for the CEO Time-Based RSUs will be satisfied in 16 equal quarterly installments beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. The market conditions for the CEO Performance RSUs will be satisfied based upon the achievement of certain market capitalization goals of the combined company during the five-year period beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. In April 2021, the Company issued 25,306,130 Series E Preferred Shares at a purchase price of approximately $7.90 per share for an aggregate purchase price of $200.0 million. The total number of shares issued include 202,449 shares issued to the CEO. In May 2021, the Company completed its evaluation related to the exercise of the convertible preferred share warrant liability that was settled in its entirety in February 2021. Upon final settlement, the Company converted the warrants into $12.9 million of Series D convertible preferred shares and recorded a $7.0 million loss related to fair value remeasurement of the warrants in the consolidated statements of operations. From March 2021 through May 2021, the Company entered into new lease agreements for retail locations in various locations. The leases commenced in April 2021 and will expire on or before March 2032. Under the lease agreements, the Company will pay base rent from $0.2 million to $1.2 million annually. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share ( “ ” “ ” “ ” |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Basis of Presentation and Preparation | Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. |
Segment Reporting | Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in the other current assets is comprised primarily of customer reservation payments for electric vehicles and other escrow deposit for building of the Arizona plant. Restricted cash included in other non-current assets is primarily related to letters of credit issued to the landlord for the Company’s headquarter in Newark, California and retail locations, and escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. The Company has restricted cash in current assets of $11.3 million and $19.8 million as of December 31, 2020 and 2019, respectively, consisting of customer reservation payments for electric vehicles of $0.5 million and $0.3 million and the escrow deposit for building of the Arizona plant of $ 10.8 million and $19.5 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company has $14.7 million and $8.2 million, respectively, held in long-term restricted cash consisting of $5.0 million and $5.0 million, respectively, for the letter of credit required by the landlord for the headquarter facility in Newark, California, $8.0 million and $1.5 million, respectively, in letter of credit required by the landlord for the retail locations, and $1.7 million and $1.7 million, respectively, in escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 |
Accounts Receivable | Accounts Receivable Accounts receivable consist of current trade receivables from a single customer. The Company records accounts receivable at their net realizable value. Management’s estimate for expected credit losses for outstanding accounts receivable are based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and the establishment of specific reserves for customers in an adverse financial condition. Adjustments are made based upon the Company’s expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. The Company also considers current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company reassesses the adequacy of estimated credit losses each reporting period. At December 31, 2020 and 2019, the Company did not record an allowance for doubtful accounts. | |
Short-Term Investments | Short-Term Investments Investments with original or remaining maturities of more than three months at the time of purchase are generally classified as short-term investments and consist of time deposits. The Company’s short-term investments consist of certificates of deposit totaling $0.5 million as of December 31, 2020 and 2019. | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. |
Other Significant Accounting Policies | Other Significant Accounting Policies As of June 30, 2021, there were no material changes in the other significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1 filed with SEC on August 2, 2021. | |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization for leasehold improvements. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. The Company generally uses the following estimated useful lives for each asset category: Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements that increase functionality of the asset are capitalized and depreciated ratably over the identified useful life. Upon disposition or retirement of property and equipment, the related cost and accumulated depreciation and amortization are removed, and any gain or loss is reflected in operations. The Company recorded a disposition loss on fixed assets of $0.1 million for the year ended December 31, 2020 and an immaterial loss for the year ended December 31, 2019. | |
Inventory | Inventory Inventory, consisting of raw materials, work in progress and finished goods is stated at the lower of cost or net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on a first-in, first-out basis. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered to be held in excess of demand or obsolete based upon assumptions about future demand and market conditions. The Company also reviews the status of the inventory periodically to determine whether a lower of cost or net realizable value analysis needs to be performed based on market pricing. The Company’s inventory is associated with battery pack system projects with its customer and consists of the following (in thousands): December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 The Company did not adjust the cost basis of its inventory as of December 31, 2020 and 2019. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019. | |
Foreign Currency | Foreign Currency The US dollar is the functional currency of the Company’s consolidated subsidiaries operating outside of the US. Monetary assets and liabilities of these subsidiaries are remeasured into US dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are remeasured at historical rates. Expenses incurred in currencies other than the US dollar (the functional currency) are remeasured at average exchange rates in effect during each period. Foreign currency gains and losses from remeasurement are included within other income (expense) — net in the Company’s consolidated statements of operations, and the Company recorded a foreign currency loss of $2.5 million for the year ended December 31, 2020 mainly due to the currency fluctuations of Euro, Japanese yen, and South Korean won, and an immaterial loss for the year ended December 31, 2019. | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers On January 1, 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method which did not result in an adjustment upon adoption. The Company follows a five-step process in which the Company identifies the contract, identifies the related performance obligations, determines the transaction price, allocates the contract transaction price to the identified performance obligations, and recognizes revenue when (or as) the performance obligations are transferred to the customer. The Company’s revenue consists of the sales of battery pack systems, supplies and related services for vehicles. The Company identifies the sale of battery pack systems and the related supplies as a performance obligation to be recognized at the point in time when control is transferred to the customer. Control transfers to the customer when the product is delivered to the customer as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Shipping and handling provided by Company is considered a fulfillment activity. While customers generally have the right to return defective or non-conforming products, past experience has demonstrated that product returns have been immaterial. Customer remedies may include either a cash refund or an exchange of the returned product. As a result, the right of return and related refund liability for non-conforming or defective goods is estimated and recorded as a reduction in revenue, if necessary. Payment for the products sold are made upon invoice or in accordance with payment terms customary to the business. The Company’s contracts do not contain significant financing components. Customer contracts generally do not include more than one performance obligation. If a contract were to contain more than one performance obligation, the Company shall allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. The Company does not have any remaining performance obligations or contract assets and liabilities as of December 31, 2020 and 2019. | |
Cost of Revenue | Cost of Revenue Cost of revenue includes direct parts, material and labor costs, manufacturing overhead, including amortized tooling costs, shipping and logistic costs, and reserves for estimated warranty expenses related to its battery packs. Cost of revenue also includes adjustments to warranty expense and charges to write down the carrying value of inventory when it exceeds its estimated net realizable value or to provide for obsolete and on-hand inventory in excess of forecasted demand. | |
Warranties | Warranties The Company provides a manufacturer’s warranty on all battery packs it sells and accrues a warranty reserve for such battery packs, as applicable. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. Current estimates of the warranty reserve are immaterial, but changes to the Company’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities in the consolidated balance sheets. The Company recorded warranty expense of zero and $0.1 million as a component of cost of revenue in the consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. | |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense related to share-based awards granted to employees is measured and recognized in the Company’s consolidated financial statements based on fair value. Share-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for each employee share option expected to vest. The fair value of each share option granted to employees and nonemployees is estimated on the grant date using the Black-Scholes option-pricing model. For nonemployee share options, the fair value is remeasured as the share options vest, and the resulting change in fair value, if any, is recognized in the consolidated statements of operations during the period the related services are rendered. | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive loss is composed of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under US GAAP are recorded as an element of shareholders’ equity (deficit) but are excluded from net loss. For the years ended December 31, 2020 and 2019, as there are no activities that impacted comprehensive income (loss), there are no differences between comprehensive loss and net loss reported in the Company’s consolidated statements of operations. | |
Research and Development | Research and Development Research and development expenses consist primarily of personnel-related expenses, contractor fees, engineering design and testing expenses, and allocated facilities cost. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses have been expensed as incurred and included in the consolidated statements of operations. | |
Selling, General, and Administrative | Selling, General, and Administrative Selling, general and administrative expense consist of personnel and facilities costs related to marketing, sales, finance, human resources, information technology, and legal departments. | |
Advertising | Advertising Advertising is expensed as incurred and is included in sales and marketing expenses in the consolidated statements of operations. These costs were immaterial for the years ended December 31, 2020 and 2019, respectively. | |
Leases | Leases An arrangement is or contains a lease if there are specified assets and the right to control the use of a specified asset is conveyed for a period in exchange for consideration. Upon lease inception, the Company classifies leases as either operating or capital leases. Leases are classified as capital leases when the terms of the lease transfers substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating leases are not recognized on the consolidated balance sheets. For capital leases, the Company recognizes capital lease assets and corresponding lease liabilities within the consolidated balance sheets at lease commencement at the present value of the rental payments. The Company recognizes rent expense on a straight-line basis in the statements of operations for operating leases. For capital leases, the Company recognizes interest expense associated with the capital lease liability and depreciation expense associated with the capital lease asset. For capital lease assets and leasehold improvements, the estimated useful lives are limited to the shorter of the useful life of the asset or the term of the lease. The Company enters into operating and capital leases associated with its office space, manufacturing and retail facilities, and equipment. On certain of its operating lease agreements, the Company may receive rent holidays and other incentives, which are recognized over the lease term through rent expense. The difference between rent expense and the cash paid under the lease agreement is recorded as deferred rent. Lease incentives, including tenant improvement allowances, are also recorded as deferred rent and amortized on a straight-line basis over the lease term. The Company recorded deferred rent under other short-term and long-term liabilities in the consolidated balance sheets as of December 31, 2020 and 2019. If the term of the lease does not exceed 12 months, the Company elects to record the rental expense in the period it is incurred, and no deferred rent will be recorded. | |
Commitments and Contingencies | Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount within a range of loss can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Legal costs incurred in connection with loss contingencies are expensed as incurred. | |
Net Loss Per Share | Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance outlines a comprehensive model for entities to use in accounting for leases and supersedes most current lease accounting guidance, including industry-specific guidance. The core principle of the new lease accounting model is that lessees are required, among other things, to recognize lease assets and lease liabilities in the consolidated balance sheets for those leases classified as operating leases under previous authoritative guidance. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company will apply the new transition method prescribed by ASU No. 2018-11 at the adoption date. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2022. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments, and amends existing earnings-per-share, or EPS, guidance by requiring that an entity use the if-converted method when calculating diluted EPS for convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We plan to adopt ASU 2020-06 effective January 1, 2022 and are currently evaluating the effect ASU 2020-06 will have on our consolidated financial statements and related disclosures. |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Schedule of reconciliation of cash and restricted cash to amounts shown in the statements of cash flow | The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 | The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 |
Schedule of estimated useful lives | Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets | |
Schedule of inventory | December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 | |
Schedule of cumulative effect of the changes due to adoption of the new lease standard | The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 |
BALANCE SHEETS COMPONENTS (Ta_2
BALANCE SHEETS COMPONENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
BALANCE SHEETS COMPONENTS | ||
Schedule of prepaid expenses and other current assets | Prepaid expenses as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Engineering, design, and testing $ 14,871 $ 8,016 Software subscriptions 4,531 1,875 Prepayments for Arizona manufacturing equipment 80 13,895 Vehicle engineering 20 4,855 Other 2,338 969 Total prepaid expenses $ 21,840 $ 29,610 Other current assets as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Tenant allowance receivable $ 12,905 $ 20,463 Other current assets 313 115 Total other current assets $ 13,218 $ 20,578 | |
Schedule of other accrued and long-term liabilities | Other accrued liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Construction of Arizona plant $ 43,115 $ 27,906 Engineering, design, and testing 42,518 11,179 Tooling 15,243 138 Professional services 9,083 1,155 Series B convertible preferred shares repurchase liability 3,000 — Other liabilities 33,124 5,701 Total other accrued liabilities $ 146,083 $ 46,079 Other long-term liabilities as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Deferred rent $ 28,881 $ 26,175 Customer deposits 8,028 1,374 Capital leases 1,996 244 Total other long-term liabilities $ 38,905 $ 27,793 | |
Schedule of Other current liabilities and long-term liabilities | Other current liabilities and long-term liabilities as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Engineering, design, and testing $ 42,674 $ 42,518 Construction of Arizona plant 12,227 43,115 Retail leasehold improvements 15,153 6,114 Professional services 5,399 9,083 Tooling 8,770 15,243 Payroll tax liability 32,728 — Series B convertible preferred share repurchase liability — 3,000 Short-term insurance financing note 8,204 980 Operating lease liabilities, current portion 11,620 — Other liabilities 22,274 31,700 Total other current liabilities $ 159,049 $ 151,753 June 30, December 31, 2021 2020 Deferred rent $ — $ 28,881 Customer deposits 11,908 8,028 Capital lease liabilities — 1,996 Operating leases liabilities, net of current portion 152,639 — Total other long-term liabilities $ 164,547 $ 38,905 | |
Schedule of Property, plant and equipment | Property, plant, and equipment as of June 30, 2021 and December 31, 2020 were as follows (in thousands): June 30, December 31, 2021 2020 Land and land improvements $ 1,050 $ 1,050 Building and improvements 189,466 — Machinery 35,847 28,830 Computer equipment and software 20,755 15,716 Leasehold improvements 72,521 47,187 Furniture and fixtures 7,256 4,503 Capital leases — 3,908 Finance leases 7,674 — Construction in progress 588,057 636,851 Total property, plant, and equipment 922,626 738,045 Less accumulated depreciation and amortization (34,852) (24,771) Property, plant, and equipment – net $ 887,774 $ 713,274 June 30, December 31, 2021 2020 Tooling $ 277,512 $ 203,241 Construction of Arizona plant 4,701 171,532 Leasehold improvements 59,478 50,790 Machinery and equipment 246,366 211,288 Total construction in progress $ 588,057 $ 636,851 | Property, plant, and equipment as of December 31, 2020 and 2019 were as follows (in thousands): December 31, 2020 2019 Land and land improvements $ 1,050 $ — Machinery 28,830 13,127 Computer equipment and software 15,716 11,921 Leasehold improvements 47,187 10,441 Furniture and fixtures 4,503 1,520 Capital leases 3,908 619 Construction in progress 636,851 119,739 Total property, plant, and equipment 738,039 157,367 Less accumulated depreciation and amortization (24,771) (14,554) Property, plant, and equipment – net $ 713,274 $ 142,813 December 31, 2020 2019 Tooling $ 203,241 $ 27,025 Construction of Arizona plant 171,532 59,842 Leasehold improvements 50,790 22,667 Machinery and equipment 211,288 10,205 Total construction in progress $ 636,851 $ 119,739 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 | The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 |
Contingent forward contracts liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Summary of the changes in the fair value of the liabilities, measured on a recurring basis | A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ — $ 30,844 Issuance 2,167,332 — Change in fair value 454,546 8,719 Settlement (2,621,878) (39,563) Fair value-end of period $ — $ — | A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 15,791 Change in fair value 15,053 Fair value-December 31, 2019 30,844 Change in fair value of Series D contingent forward contract 8,720 Settlement of Series D contingent forward contract (39,563) Issuance of Series E contingent forward contract 793 Change in fair value of Series E contingent forward contract 109,662 Settlement of Series E contingent forward contract (110,456) Fair value-December 31, 2020 $ — |
Convertible preferred share warrant liability | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Summary of the changes in the fair value of the liabilities, measured on a recurring basis | A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ 2,960 $ 1,755 Change in fair value 6,976 114 Settlement (9,936) — Fair value-end of period $ — $ 1,869 | A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 1,349 Change in fair value 406 Fair value-December 31, 2019 1,755 Change in fair value 1,205 Fair value-December 31, 2020 $ 2,960 |
CONTINGENT FORWARD CONTRACTS _4
CONTINGENT FORWARD CONTRACTS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 | The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 |
Third closing | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Stock Price $ 36.45 Volatility 100 % Expected term 0.01 Years Risk-free rate 0.03 % | |
Fourth closing | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Fair value of Series E convertible preferred share $ 36.45 Volatility 100 % Expected term 0.11 Years Risk-free rate 0.03 % | |
Series D convertible preferred shares | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Settlement date 3/31/2020 6/30/2020 Expected term — — Contingent Series D convertible preferred shares fair value (per share) $ 6.99 $ 7.10 Present value factor 1.0000 1.0000 Estimated probability of satisfying milestones 100 % 100 % | |
Series E convertible preferred shares | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Effective date 9/22/2020 12/31/2020 Expected term 0.25 Years — Contingent Series E convertible preferred shares fair value (per share) $ 7.92 $ 10.09 Present value factor 0.9999 1.0000 Estimated probability of satisfying milestones 95 % 100 % | |
Series D contingent forward contract liability | ||
Derivative [Line Items] | ||
Schedule of financial assets and liabilities subject to fair value measurements on a recurring basis | Effective date 9/20/2018 Coupon payment dates Semi-Annual Maturity date 03/20/2020 Initial term 1.5 Years Interest rate (coupon rate) 8.00 % Yield (market rate) 8.00 % Effective interest rate 2.47 % |
CONVERTIBLE PREFERRED SHARE W_6
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY | ||
Schedule of assumptions used in determining the fair value of convertible preferred share warrants | December 31, 2020 Volatility 50.00 % Expected term (in years) 0.5 – 1.5 Risk-free rate 0.09 – 0.12 % Expected dividend rate 0.00 % | As of December 31, 2020 2019 Volatility 50.0 % 55.0 % Expected term (in years) 0.5 – 1.5 2.3 Risk-free rate 0.09 – 0.12 % 1.59 % Expected dividend rate 0.0 % 0.0 % |
CONVERTIBLE PREFERRED SHARES_20
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | ||
Summary of key inputs used in determining the fair value of contingent repurchase feature as of the extinguishment date | Effective date 9/30/2018 Current price $ 3.28 Exercise price $ 14.0 Initial term 0.5 Years Volatility 55.00 % Risk free rate 2.36 % Dividend yield 0.00 % | |
Summary of key inputs used in determining the fair value of convertible preferred shares as of the extinguishment date | Price per share $ 5.45 – 6.41 Term 1.7 – 2.4 Years Volatility 55.00 % Risk free rate 2.71% – 2.81% Price per share $ 6.41 Term 1.7 – 2.3 Years Volatility 55.00 % Risk free rate 1.59% – 2.71% | |
Summary of activities related to the PIF Convertible Notes and Series D convertible preferred share funding | Conversion of Convertible Notes $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series D received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,564 Conversion of preferred stock warrant to Series D in February 2021 3,000 Reclassification of preferred stock warrant liability to Series D in February 2021 9,936 Total proceeds of Series D $ 1,324,485 | Conversion of Convertible Notes (Note 5) $ 271,985 Series D received in April 2019 200,000 Series D received in October 2019 400,000 Series D received in March 2020 200,000 Series received in June 2020 200,000 Contingent forward contract liability reclassified to Series D 39,563 Total proceeds of Series D $ 1,311,548 |
Summary of convertible preferred shares, par value per share, authorized, and outstanding | As of June 30, 2021 and December 31, 2020, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of June 30, 2021 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 8,000,000 8,000,000 23,740 3.00 3.00 24,000 Series C 22,532,244 22,532,244 137,475 6.41 6.41 144,432 Series D 204,733,847 204,733,847 1,324,485 6.15 9.62 1,969,540 Series E 189,795,981 189,795,981 4,339,160 7.90 11.85 2,249,082 Total 437,182,072 437,182,072 $ 5,836,785 $ 4,399,174 As of December 31, 2020 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 * As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. | As of December 31, 2020, and 2019, the Company had the following convertible preferred shares, par value of $0.0001 per share, authorized, and outstanding (in thousands, except share and per share amounts): As of December 31, 2020 Conversion Price Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B* 9,333,333 9,333,333 23,740 3.00 3.00 28,000 Series C 31,170,225 22,532,244 137,475 6.41 6.41 144,432 Series D 234,009,360 204,148,825 1,311,548 6.15 9.62 1,963,912 Series E 113,877,589 113,877,589 1,009,388 7.90 11.85 1,349,449 Total 400,510,507 362,011,991 $ 2,494,076 $ 3,497,913 *As of December 31, 2020, 1,333,333 Series B convertible preferred shares at aggregate fair value of $3.0 million were extinguished and reclassified to other accrued liabilities, with cash settlement occurring in January 2021. As of December 31, 2019 Conversion Per Share to Liquidation Shares Shares Net Carrying Common Per Share Liquidation Convertible Preferred Shares Authorized Outstanding Value Shares Amount Amount Series A 12,120,000 12,120,000 $ 11,925 $ 1.00 $ 1.00 $ 12,120 Series B 9,333,333 9,333,333 27,740 3.00 3.00 28,000 Series C 31,170,225 26,884,509 162,360 6.41 6.41 172,331 Series D 234,009,360 141,746,324 871,985 6.15 9.62 1,362,891 Total 286,632,918 190,084,166 $ 1,074,010 $ 1,575,342 |
Summary of common shares reserved for future issuances | June 30, December 31, 2021 2020 Convertible preferred shares outstanding 437,182,072 362,011,991 Share options outstanding 26,099,336 26,730,453 Restricted stock unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Shares available for future grants 4,469,725 3,981,178 Total common shares reserved 483,514,731 393,308,644 | As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Shares available for future grants 3,981,178 7,336,862 Total common shares reserved 393,308,645 224,218,549 |
SHARES-BASED AWARDS (Tables)_2
SHARES-BASED AWARDS (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Summary of share option activity | Outstanding Options Weighted- Weighted Average Intrinsic Average Remaining Value Number of Exercise Contractual (in Options Price Term thousands) Balance – December 31, 2020 26,730,453 $ 2.21 7.8 $ 118,155 Options granted 3,177,756 7.51 Options exercised (3,028,530) 1.74 Options canceled (780,343) 3.13 Balance – June 30, 2021 26,099,336 $ 1.80 8.5 $ 2,491,171 Options vested and exercisable June 30, 2021 14,842,155 $ 1.88 6.6 $ 883,724 | A summary of share option activity under the 2009 Plan and the 2014 Plan is as follows: Outstanding Options Weighted- Weighted Average Average Remaining Intrinsic Shares Available for Number of Exercise Contractual Value (in Grant Options Price Term thousands) Balance – January 1, 2019 19,257,865 14,716,256 $ 1.06 6.37 $ 12,341 Options granted (12,943,015) 12,943,015 2.19 Options exercised — (424,761) 1.22 Options canceled 1,022,012 (1,022,012) 1.92 Balance – December 31, 2019 7,336,862 26,212,498 $ 1.58 6.27 $ 21,236 Options granted (9,009,210) 9,009,210 3.06 Options exercised — (2,837,729) 1.15 Options canceled 5,653,526 (5,653,526) 1.17 Balance – December 31, 2020 3,981,178 26,730,453 $ 2.21 7.79 $ 118,155 Options vested and exercisable December 31, 2020 26,111,472 $ 1.75 6.75 $ 75,944 |
Summary of the assumptions utilized to record compensation expense for share options granted | Six Months Ended June 30, 2021 2020 Weighted average volatility 41.9 % 42.7 % Expected term (in years) 5.9 6.0 Risk-free interest rate 0.6 % 1.1 % Expected dividends — — | A summary of the assumptions the Company utilized to record compensation expense for share options granted during the years ended December 31, 2020 and 2019, is as follows: Year Ended December 31, 2020 2019 Weighted average volatility 58.98 % 42.77 % Expected term (in years) 5.9 5.5 Risk-free interest rate 0.75 % 2.11 % Expected dividends — — |
Summary of RSU award activity | Restricted Stock Units Weighted- Performance- Average Time-Based Based Total Grant-Date Shares Shares Shares Fair Value Nonvested balance as of December 31, 2020 — — — $ — Granted 9,729,078 6,060,670 15,789,748 50.71 Cancelled/Forfeited (26,150) — (26,150) 56.06 Nonvested balance as of June 30, 2021 9,702,928 6,060,670 15,763,598 $ 50.70 | |
Summary of employee and nonemployee share-based compensation expense | Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Research and development $ 13,539 $ 552 $ 26,703 $ 1,393 Selling, general and administrative 10,910 458 102,541 588 Total $ 24,449 $ 1,010 $ 129,244 $ 1,981 | Total employee and nonemployee share-based compensation expense, including that related to the extended exercise terms for senior management and consultants for the years ended December 31, 2020 and 2019, is classified in the consolidated statements of operations as follows (in thousands): Year Ended December 31, 2020 2019 Cost of revenue $ 213 $ 443 Research and development 3,724 4,770 Selling, general and administrative 677 2,506 Total $ 4,614 $ 7,719 |
RSU award | ||
Summary of the assumptions utilized to record compensation expense for share options granted | Six Months Ended June 30, 2021 Weighted average volatility 60.0 % Expected term (in years) 5.0 Risk-free interest rate 0.9 % Expected dividends — |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
LEASES | ||
Summary of operating and finance leases within the Company's consolidated balance sheet | The balances for the operating and finance leases where the Company is the lessee are presented as follows within the Company’s consolidated balance sheet (in thousands): As of June 30, 2021 Operating leases: Operating lease right-of-use assets $ 126,655 Other current liabilities $ 11,620 Other long-term liabilities 152,639 Total operating lease liabilities $ 164,259 Finance leases: Property, plant and equipment, net 6,442 Total finance lease assets $ 6,442 Finance lease liabilities, current portion $ 2,572 Finance lease liabilities, net of current portion 3,963 Total finance lease liabilities $ 6,535 | |
Summary of components of lease expense, other information and supplemental cash flow information related to leases | The components of lease expense are as follows within the Company’s consolidated statement of operations (in thousands): Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 Operating lease expense: Operating lease expense (1) $ 7,219 $ 13,522 Variable lease expense 579 1,159 Finance lease expense: Amortization of leased assets $ 637 $ 1,232 Interest on lease liabilities 104 213 Total finance lease expense $ 741 $ 1,445 Total lease expense $ 8,539 $ 16,126 (1) Includes short-term leases, which are immaterial. Other information related to leases where the Company is the lessee is as follows: As of June 30, 2021 Weighted-average remaining lease term (in years): Operating leases 8.2 Finance leases 2.5 Weighted-average discount rate: Operating leases 11.03 % Finance leases 6.65 % Supplemental cash flow information related to leases where the Company is the lessee is as follows (in thousands): Six Months Ended June 30, 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 7,742 Operating cash flows from finance leases (interest payments) 213 Financing cash flows from finance leases 1,364 Leased assets obtained in exchange for new operating lease liabilities 43,780 Leased assets obtained in exchange for new finance lease liabilities 4,437 | |
Summary of maturities of the operating lease liabilities | As of June 30, 2021, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) are as follows (in thousands): Operating Finance Leases Leases Six months ending June 30, 2021 $ 14,825 $ 1,496 2022 31,431 2,810 2023 30,577 2,457 2024 30,822 318 2025 29,778 — Thereafter 121,109 — Total minimum lease payments 258,542 7,081 Less: Interest (94,283) (546) Present value of lease obligations 164,259 6,535 Less: Current portion 11,620 2,572 Long-term portion of lease obligations $ 152,639 $ 3,963 | |
Summary of maturities of the finance lease liabilities | As of June 30, 2021, the maturities of the Company’s operating and finance lease liabilities (excluding short-term leases) are as follows (in thousands): Operating Finance Leases Leases Six months ending June 30, 2021 $ 14,825 $ 1,496 2022 31,431 2,810 2023 30,577 2,457 2024 30,822 318 2025 29,778 — Thereafter 121,109 — Total minimum lease payments 258,542 7,081 Less: Interest (94,283) (546) Present value of lease obligations 164,259 6,535 Less: Current portion 11,620 2,572 Long-term portion of lease obligations $ 152,639 $ 3,963 | |
Summary of future minimum lease payments under non-cancellable operating leases under legacy lease accounting (ASC 840) | As previously reported in the Company’s audited financial statements for the year ended December 31, 2020 and under legacy lease accounting (ASC 840), future minimum lease payments under non-cancellable leases as of December 31, 2020 are as follows (in thousands): Operating Finance Leases Leases 2021 $ 25,490 $ 1,729 2022 28,837 1,547 2023 27,633 1,174 2024 28,207 9 2025 27,474 — Thereafter 116,155 — Total minimum lease payments $ 253,796 4,459 Less: Interest (1,202) Present value of lease obligations 3,257 Less: Current portion (1,261) Long-term portion of lease obligations 1,996 | Future minimum payments as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 25,490 2022 28,837 2023 27,633 2024 28,207 2025 27,474 Thereafter 116,155 Total $ 253,796 |
Summary of future minimum lease payments under non-cancellable finance leases under legacy lease accounting (ASC 840) | Operating Finance Leases Leases 2021 $ 25,490 $ 1,729 2022 28,837 1,547 2023 27,633 1,174 2024 28,207 9 2025 27,474 — Thereafter 116,155 — Total minimum lease payments $ 253,796 4,459 Less: Interest (1,202) Present value of lease obligations 3,257 Less: Current portion (1,261) Long-term portion of lease obligations 1,996 | Future minimum payments for the capital lease as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 1,729 2022 1,547 2023 1,174 2024 9 Total capital lease obligations 4,459 Less amounts representing interest (1,202) Capital lease obligations, net of interest $ 3,257 |
COMMITMENTS AND CONTINGENCIES_7
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
COMMITMENTS AND CONTINGENCIES | ||
Summary of estimated purchase commitment | Minimum Purchase Years ended December 31, Commitment 2021 (remainder of the year) $ 104,370 2022 202,400 2023 202,400 Total $ 509,170 | Minimum Purchase Commitment Year Ending December 31: 2021 $ 101,200 2022 202,400 2023 202,400 Total $ 506,000 |
NET LOSS PER SHARE (Tables)_2
NET LOSS PER SHARE (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
NET LOSS PER SHARE | ||
Schedule of basic and diluted loss per common share | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (261,726) $ (117,285) $ (1,009,678) $ (246,868) Deemed dividend related to the issuance of Series E convertible preferred shares — — (2,167,332) — Net loss attributable to common shareholders $ (261,726) $ (117,285) $ (3,177,010) $ (246,868) Weighted-average shares outstanding — basic and diluted 13,728,639 8,319,168 13,042,653 8,117,746 Net loss per share: Basic and diluted $ (19.06) $ (14.10) $ (243.59) $ (30.41) | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2020 2019 Basic and diluted net loss per share Numerator: Net loss $ (719,380) $ (277,357) Deemed contribution related to repurchase of Series B convertible preferred shares 1,000 — Deemed contribution related to repurchase of Series C convertible preferred shares 12,784 7,935 Net loss attributable to common shareholders $ (705,596) $ (269,422) Denominator: Weighted-average shares outstanding – basic 9,389,540 7,789,421 Effect of dilutive potential common shares from share options, share awards and employee share purchase plan — — Weighted-average shares outstanding – diluted 9,389,540 7,789,421 Net loss per share: Basic $ (75.15) $ (34.59) Diluted $ (75.15) $ (34.59) |
Schedule of potential common shares not included in the calculation of diluted net loss per share | As of June 30, 2021 2020 Convertible preferred shares outstanding 437,182,072 252,486,667 Share options outstanding 26,099,336 22,729,435 Restricted share unit outstanding 15,763,598 — Convertible preferred share warrant — 585,022 Total 479,045,006 275,801,124 | As of December 31, 2020 2019 Convertible preferred shares outstanding 362,011,991 190,084,166 Share options outstanding 26,730,453 26,212,498 Convertible preferred share warrant 585,023 585,023 Total potential convertible securities to common shares 389,327,467 216,881,686 |
DESCRIPTION OF BUSINESS (Deta_2
DESCRIPTION OF BUSINESS (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | |||||
Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 03, 2020 | |
Operating losses, including net losses | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | |||||
Accumulated deficit | (4,495,788,000) | (4,495,788,000) | $ (1,356,893,000) | (1,356,893,000) | $ (637,513,000) | ||||||
Churchill Capital Corp IV | |||||||||||
Cash received | 2,100,000,000 | 2,100,000,000 | |||||||||
Private Investment in Public Entity | 2,500,000,000 | 2,500,000,000 | |||||||||
Operating losses, including net losses | $ (1,000) | (588,819,915) | $ (54,303,650) | $ (54,304,650) | (1,460,618,073) | (63,467,875) | |||||
Accumulated deficit | $ (1,672,185,472) | $ 54,304,650 | $ 54,304,650 | $ (1,672,185,472) | $ (63,467,875) | $ (63,467,875) | $ 2,168,536 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||
Cash | $ 557,938 | $ 614,412 | $ 293,896 | $ 351,684 | |
Restricted cash included in other current assets | 10,989 | 11,278 | 18,456 | 19,767 | |
Restricted cash included in other noncurrent assets | 23,278 | 14,728 | 8,200 | 8,200 | |
Total cash and restricted cash | $ 592,205 | $ 640,418 | $ 320,552 | $ 379,651 | $ 97,808 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Adopted Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Prepaid expenses | $ 41,276 | $ 21,660 | $ 21,840 | $ 29,610 |
Property, plant and equipment, net | 887,774 | 716,511 | 713,274 | 142,813 |
Operating lease right-of-use assets | 126,655 | 90,932 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other current liabilities | 159,049 | 159,783 | 151,753 | |
Other long-term liabilities | $ 164,547 | 125,057 | 38,905 | $ 27,793 |
Adjustment | ||||
ASSETS | ||||
Prepaid expenses | (180) | |||
Property, plant and equipment, net | 3,237 | |||
Operating lease right-of-use assets | 90,932 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other current liabilities | 8,030 | |||
Other long-term liabilities | 86,152 | |||
ASU 2016-02 | ||||
ASSETS | ||||
Prepaid expenses | 21,840 | |||
Property, plant and equipment, net | 713,274 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Other current liabilities | 151,753 | |||
Other long-term liabilities | $ 38,905 | |||
ASU 2016-02 | Adjustment | ||||
ASSETS | ||||
Operating lease right-of-use assets | $ 94,200 |
SUMMARY OF SIGNIFICANT ACCOU_15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information - (Details) - USD ($) $ in Thousands | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | $ 90,932 | $ 126,655 | ||
Lease liability | $ 164,259 | |||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Foreign currency loss | 2,500 | |||
Warranty expense | $ 0 | $ 100 | ||
Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | 90,932 | |||
ASU 2016-02 | Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Right-of-use assets | 94,200 | |||
Lease liability | 126,000 | |||
Reclassification of prepaid expense | 200 | |||
Reclassification of deferred rent including tenant improvement allowances and other liability balances | $ 31,800 |
BALANCE SHEETS COMPONENTS - O_4
BALANCE SHEETS COMPONENTS - Other Current Liabilities (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2021USD ($)item | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($)installment | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
BALANCE SHEETS COMPONENTS | |||||
Engineering, design, and testing | $ 42,674 | $ 42,674 | $ 42,518 | ||
Construction of Arizona plant | 12,227 | 12,227 | 43,115 | ||
Retail Leasehold Improvements | 15,153 | 15,153 | 6,114 | ||
Professional services | 5,399 | 5,399 | 9,083 | ||
Tooling | 8,770 | 8,770 | 15,243 | ||
Payroll tax liability | 32,728 | 32,728 | |||
Series B convertible preferred share repurchase liability | 3,000 | ||||
Short-term insurance financing note | 8,204 | 8,204 | 980 | ||
Operating lease liabilities, current portion | 11,620 | 11,620 | |||
Other liabilities | 22,274 | 22,274 | 31,700 | ||
Total other current liabilities | 159,049 | 159,049 | $ 159,783 | $ 151,753 | |
Finance insurance premium | $ 11,000 | 2,700 | 2,700 | ||
Number of insurance policies | item | 3 | ||||
Down payment of insurance | $ 900 | ||||
Percentage of interest on premium of insurance | 2.65% | ||||
Amount Interest on premium of insurance | $ 100 | 24,200 | 24,200 | ||
Remaining principal balance | $ 8,200 | 8,200 | |||
Principal and interest amount | $ 900 | ||||
Number of installments | installment | 11 | ||||
Prepaid insurance | $ 11,000 | ||||
Insurance policy term | 1 year | 1 year | 1 year |
BALANCE SHEETS COMPONENTS - O_5
BALANCE SHEETS COMPONENTS - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
BALANCE SHEETS COMPONENTS | ||||
Deferred rent | $ 28,881 | $ 26,175 | ||
Customer deposits | $ 11,908 | 8,028 | 1,374 | |
Capital lease liabilities | 1,996 | |||
Operating leases liabilities, net of current portion | 152,639 | |||
Total other long-term liabilities | $ 164,547 | $ 125,057 | $ 38,905 | $ 27,793 |
BALANCE SHEETS COMPONENTS - P_2
BALANCE SHEETS COMPONENTS - Property, Plant, and Equipment, net (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | $ 922,626 | $ 738,045 |
Capital leases | 3,908 | |
Finance lease | 7,674 | 3,908 |
Less accumulated depreciation and amortization | (34,852) | (24,771) |
Property, plant, and equipment - net | 887,774 | 713,274 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 1,050 | 1,050 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 189,466 | |
Machinery | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 35,847 | 28,830 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 20,755 | 15,716 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 72,521 | 47,187 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 7,256 | 4,503 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant, and equipment | 588,057 | 636,851 |
Depreciation | $ 0 | $ 0 |
BALANCE SHEETS COMPONENTS - Con
BALANCE SHEETS COMPONENTS - Construction in progress (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | $ 636,851 | $ 119,739 | ||||
Depreciation and amortization expense | $ 6,800 | $ 1,800 | $ 11,738 | $ 3,292 | 10,217 | 3,842 |
Depreciation on capital leased assets | 500 | 200 | ||||
Construction in progress | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 588,057 | 588,057 | 636,851 | |||
Tooling | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 277,512 | 277,512 | 203,241 | 27,025 | ||
Construction of Arizona plant | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 4,701 | 4,701 | 171,532 | 59,842 | ||
Leasehold improvements | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | 59,478 | 59,478 | 50,790 | 22,667 | ||
Machinery and Equipment | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Total construction in progress | $ 246,366 | $ 246,366 | $ 211,288 | $ 10,205 |
FAIR VALUE MEASUREMENTS - Compa
FAIR VALUE MEASUREMENTS - Company's Financial Assets and Liabilities (Details) - Recurring - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | |||
Assets | $ 34,772 | $ 26,511 | $ 28,472 |
Liabilities: | |||
Liabilities | 2,960 | 32,599 | |
Convertible preferred share warrant liability | |||
Liabilities: | |||
Liabilities | 2,960 | 1,755 | |
Short-term investment Certificate of deposit | |||
Assets: | |||
Assets | 505 | 505 | 505 |
Restricted cash - short term | |||
Assets: | |||
Assets | 34,267 | 26,006 | 19,767 |
Restricted cash - long term | |||
Assets: | |||
Assets | 14,728 | 8,200 | |
Level 1 | |||
Assets: | |||
Assets | 34,267 | 26,006 | 27,967 |
Level 1 | Restricted cash - short term | |||
Assets: | |||
Assets | 34,267 | 26,006 | 19,767 |
Level 1 | Restricted cash - long term | |||
Assets: | |||
Assets | 14,728 | 8,200 | |
Level 2 | |||
Assets: | |||
Assets | 505 | 505 | 505 |
Level 2 | Short-term investment Certificate of deposit | |||
Assets: | |||
Assets | $ 505 | 505 | 505 |
Level 3 | |||
Liabilities: | |||
Liabilities | 2,960 | 32,599 | |
Level 3 | Convertible preferred share warrant liability | |||
Liabilities: | |||
Liabilities | $ 2,960 | $ 1,755 |
FAIR VALUE MEASUREMENTS - Recon
FAIR VALUE MEASUREMENTS - Reconciliation of the Contingent Forward Contract Liability (Details) - Contingent forward contracts liability - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 0 | $ 30,844 | $ 30,844 | $ 15,791 |
Issuance | 2,167,332 | |||
Change in fair value | 454,546 | 8,719 | 15,053 | |
Settlement | $ (2,621,878) | $ (39,563) | ||
Ending balance | $ 0 | $ 30,844 |
FAIR VALUE MEASUREMENTS - Rec_2
FAIR VALUE MEASUREMENTS - Reconciliation of the Convertible Preferred Share Warrant Liabilities (Details) - Convertible preferred share warrant liability - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Beginning balance | $ 2,960 | $ 1,755 | $ 1,755 | $ 1,349 |
Change in fair value | 6,976 | 114 | 1,205 | 406 |
Settlement | (9,936) | |||
Ending balance | $ 0 | $ 1,869 | $ 2,960 | $ 1,755 |
CONTINGENT FORWARD CONTRACTS _5
CONTINGENT FORWARD CONTRACTS (Details) | Jul. 23, 2021shares | Apr. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Feb. 28, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Jun. 30, 2020USD ($)shares | Mar. 31, 2020USD ($)shares | Sep. 30, 2018USD ($) | Apr. 30, 2021USD ($)$ / shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2020USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Nov. 30, 2020USD ($) |
Derivative [Line Items] | ||||||||||||||||
Reclassification from contingent forward contracts liability | $ 12,382,000 | $ 3,203,000 | $ 454,546,000 | $ 8,719,000 | $ 118,382,000 | $ 15,053,000 | ||||||||||
Contingent forward contract liability | $ 12,400,000 | 12,400,000 | 30,844,000 | |||||||||||||
Issuance of Class B common stock (in shares) | shares | 1,193,226,511 | |||||||||||||||
Series D contingent forward contract liability | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Proceeds from issuance of convertible preferred shares | $ 200,000,000 | |||||||||||||||
Number of shares issued | shares | 31,201,245 | |||||||||||||||
Fair value of contingent forward contract liability | $ 21,400,000 | $ 36,400,000 | 21,400,000 | 21,400,000 | ||||||||||||
Reclassification from contingent forward contracts liability | 18,200,000 | |||||||||||||||
Contingent forward contract liability | 0 | 0 | 0 | |||||||||||||
Loss related to fair value remeasurements | $ 3,200,000 | 8,700,000 | ||||||||||||||
Series E contingent forward contract liability | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Fair value of contingent forward contract liability | $ 110,500,000 | 110,500,000 | ||||||||||||||
Loss related to fair value remeasurements | 109,700,000 | |||||||||||||||
Series D convertible preferred shares | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Proceeds from issuance of convertible preferred shares | $ 200,000,000 | $ 200,000,000 | 3,000,000 | $ 400,000,000 | $ 400,000,000 | $ 600,000,000 | ||||||||||
Number of shares issued | shares | 31,201,256 | 31,201,245 | 31,201,256 | 62,402,501 | 62,402,501 | 141,746,324 | ||||||||||
Contingent forward contract liability | $ 39,600,000 | $ 39,600,000 | $ 39,600,000 | |||||||||||||
Loss related to fair value remeasurements | $ 8,700,000 | |||||||||||||||
Series E convertible preferred shares | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Proceeds from issuance of convertible preferred shares | 400,000,000 | $ 600,000,000 | $ 899,725,000 | |||||||||||||
Number of shares issued | shares | 25,306,130 | 75,918,392 | 113,877,589 | |||||||||||||
Carrying amount per share | $ / shares | $ 7.90 | $ 7.90 | ||||||||||||||
Fair value of contingent forward contract liability | $ 0 | $ 0 | ||||||||||||||
Contingent forward contract liability | $ 110,500,000 | $ 110,500,000 | $ 800,000 | |||||||||||||
Issuance of Class B common stock (in shares) | shares | 25,306,130 | |||||||||||||||
Series E convertible preferred shares | Expected exchange ratio | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Convertible preferred shares, measurement input | 23.78 | 23.78 | ||||||||||||||
Series E convertible preferred shares | Discount for lack of marketability | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Convertible preferred shares, measurement input | 5 | 5 | ||||||||||||||
Series E convertible preferred shares | CEO | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 202,449 | |||||||||||||||
Third closing | Series E convertible preferred shares | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Proceeds from issuance of convertible preferred shares | $ 400,000,000 | |||||||||||||||
Number of shares issued | shares | 50,612,262 | |||||||||||||||
Carrying amount per share | $ / shares | $ 7.90 | |||||||||||||||
Contingent forward contract liability | $ 1,400,000,000 | $ 1,400,000,000 | ||||||||||||||
Fourth closing | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Fair value of contingent forward contract liability | 1,200,000,000 | 1,200,000,000 | ||||||||||||||
Contingent forward contract liability | $ 0 | $ 0 | ||||||||||||||
Loss related to fair value remeasurements | $ 454,500,000 | |||||||||||||||
Fourth closing | Series E convertible preferred shares | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Proceeds from issuance of convertible preferred shares | $ 92,900,000 | $ 107,100,000 | $ 71,000,000 | $ 200,000,000 | ||||||||||||
Number of shares issued | shares | 25,306,130 | 8,977,769 | ||||||||||||||
Carrying amount per share | $ / shares | $ 7.90 | $ 7.90 | $ 7.90 | |||||||||||||
Contingent forward contract liability | $ 722,400,000 | $ 722,400,000 | ||||||||||||||
Fourth closing | Series E convertible preferred shares | Management | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 1,147,577 | |||||||||||||||
Fourth closing | Series E convertible preferred shares | Director | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 627,347 | |||||||||||||||
Fourth closing | Series E convertible preferred shares | CEO | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 202,449 | |||||||||||||||
Convertible notes | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Debt discount | $ 18,600,000 | |||||||||||||||
Convertible notes | Series D convertible preferred shares | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Debt discount | $ 18,600,000 |
CONTINGENT FORWARD CONTRACTS _6
CONTINGENT FORWARD CONTRACTS - Series E convertible preferred shares (Details) | Jun. 30, 2021USD ($) | Feb. 21, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 22, 2020 |
Third closing | Stock price | ||||
Derivative [Line Items] | ||||
Measurement input | 36.45 | |||
Third closing | Volatility | ||||
Derivative [Line Items] | ||||
Measurement input | 100 | |||
Third closing | Term | ||||
Derivative [Line Items] | ||||
Measurement input | 0.01 | |||
Third closing | Risk-free rate | ||||
Derivative [Line Items] | ||||
Measurement input | 0.03 | |||
Series E convertible preferred shares | Stock price | ||||
Derivative [Line Items] | ||||
Measurement input | 10.09 | 7.92 | ||
Series E convertible preferred shares | Term | ||||
Derivative [Line Items] | ||||
Measurement input | 0.25 | |||
Series E convertible preferred shares | Fourth closing | Stock price | ||||
Derivative [Line Items] | ||||
Measurement input | 100 | |||
Series E convertible preferred shares | Fourth closing | Volatility | ||||
Derivative [Line Items] | ||||
Measurement input | 0.11 |
CONVERTIBLE PREFERRED SHARE W_7
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Feb. 28, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 31, 2021 | Sep. 30, 2017 | Mar. 31, 2017 | |
Class of Warrant or Right [Line Items] | |||||||||
Warrants outstanding | 585,022 | 585,022 | |||||||
Series D convertible preferred shares | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants converted in to shares | 12,900,000 | ||||||||
Amount of warrants converted in to shares | $ 12.9 | ||||||||
Loss related to fair value remeasurements | $ 8.7 | ||||||||
Series D convertible preferred shares | OPM Scenario | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Percentage of probability of scenario for fair value estimation | 20.00% | ||||||||
Series D convertible preferred shares | SPAC Scenario | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Percentage of probability of scenario for fair value estimation | 70.00% | ||||||||
Series D convertible preferred shares | IPO Scenario | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Percentage of probability of scenario for fair value estimation | 10.00% | ||||||||
Convertible preferred share warrant liability | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants converted in to shares | 2 | 2 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ 5.13 | ||||||||
Aggregate purchase price of warrants | $ 3 | ||||||||
Warrants expiry term (in years) | 10 years | 10 years | 10 years | ||||||
Warrant liability | $ 3 | $ 0.2 | $ 0.4 | ||||||
Warrants outstanding | 585,022 | 585,022 | |||||||
Carrying amount per share | $ 5.06 | $ 3 | |||||||
Loss related to fair value remeasurements | $ 0.1 | $ 7 | $ 0.1 | ||||||
Issuance of Class B common stock | $ 3 | $ 1.8 | |||||||
Convertible preferred share warrant liability | Series D convertible preferred shares | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrants converted in to shares | 585,023 | ||||||||
Class of warrant or right, exercise price of warrants or rights | $ 5.128 | $ 5.128 | $ 5.128 | ||||||
Warrants outstanding | 585,022 | 585,022 |
CONVERTIBLE PREFERRED SHARE W_8
CONVERTIBLE PREFERRED SHARE WARRANT LIABILITY - Convertible preferred share warrants (Details) - Convertible preferred share warrant liability | Dec. 31, 2020USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Volatility | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 50 | 50 | 55 |
Term | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 2.3 | ||
Term | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.5 | 0.5 | |
Term | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 1.5 | 1.5 | |
Risk-free rate | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 1.59 | ||
Risk-free rate | Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.09 | 0.09 | |
Risk-free rate | Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0.12 | 0.12 | |
Dividend yield | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Measurement input | 0 | 0 |
CONVERTIBLE PREFERRED SHARES_21
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Convertible preferred shares (Details) - Series C $ / shares in Units, $ in Millions | 1 Months Ended |
Sep. 30, 2018USD ($)$ / sharesshares | |
Equity, Class of Treasury Stock [Line Items] | |
Number of shares repurchased (in shares) | shares | 4,285,715 |
Carrying amount of shares repurchased | $ | $ 60 |
Carrying amount per share | $ / shares | $ 14 |
CONVERTIBLE PREFERRED SHARES_22
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Third Company Repurchase (Details) - Third Company Repurchase - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Aug. 31, 2020 | Dec. 31, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 10.5 | |
Series C | ||
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares agreed to repurchase | 3,652,265 | |
Price per share | $ 2.70 | |
Value of shares agreed to repurchase | $ 9.9 | |
Carrying value of the repurchased convertible preferred shares | $ 20.4 | |
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 10.5 |
CONVERTIBLE PREFERRED SHARES_23
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Fourth Company Repurchase (Details) - Series C - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Carrying amount per share | $ 14 | ||
Fourth Company Repurchase | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares agreed to repurchase | 700,000 | 700,000 | |
Price per share | $ 3.20 | $ 3.20 | |
Value of shares agreed to repurchase | $ 2.2 | $ 2.2 | |
Carrying amount per share | $ 6.41 | ||
Carrying value of the repurchased convertible preferred shares | $ 4.5 | ||
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 2.2 |
CONVERTIBLE PREFERRED SHARES_24
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Fifth Company Repurchase (Details) - Series B - Fifth Company Repurchase - USD ($) $ in Millions | Dec. 22, 2020 | Dec. 31, 2020 |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares agreed to repurchase | 1,333,333 | |
Carrying value of the repurchased convertible preferred shares | $ 4 | |
Value of shares agreed to repurchase | 3 | |
Adjustment to additional paid-in capital related to excess fair value paid over carrying amount | $ 1 | |
Mandatorily redeemable term | 45 days |
CONVERTIBLE PREFERRED SHARES_25
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Series D Preferred Share Issuance (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 23, 2021 | Apr. 02, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||||||||
Convertible Notes converted to Series D convertible preferred shares | $ 271,984 | |||||||||
Issuance of Class B common stock (in shares) | 1,193,226,511 | |||||||||
Series D | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from issuance of preferred shares | $ 1,324,485 | $ 1,311,548 | ||||||||
Series D | Security Purchase Agreement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | $ 400,000 | |||||||||
Proceeds from agreement received in tranches | $ 200,000 | $ 200,000 | $ 200,000 | |||||||
Convertible Notes converted to Series D convertible preferred shares | $ 272,000 | |||||||||
Issuance of Class B common stock (in shares) | 31,201,256 | 31,201,245 | 141,746,324 | |||||||
Shares issued, price per share | $ 6.15 | |||||||||
Proceeds from issuance of preferred shares | $ 872,000 | |||||||||
Share issuance costs recorded as noncurrent assets | $ 10,200 | |||||||||
Share issuance costs incurred and recorded as an issuance cost in additional paid in capital | $ 300 | |||||||||
Series D | First tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | 200,000 | |||||||||
Proceeds from agreement received in tranches | $ 200,000 | $ 200,000 | $ 200,000 | |||||||
Series D | Second tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | 400,000 | |||||||||
Proceeds from agreement received in tranches | $ 400,000 | 400,000 | ||||||||
Series D | Third tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Amount of shares issuable | $ 400,000 | $ 400,000 |
CONVERTIBLE PREFERRED SHARES_26
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - PIF Convertible Notes (Details) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Feb. 28, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Oct. 31, 2019 | Jun. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||||||||
Reclassification of preferred stock warrant liability to Series D | $ 9,936 | ||||||||
Series D | |||||||||
Class of Stock [Line Items] | |||||||||
Conversion of Convertible Notes | 271,985 | $ 271,985 | |||||||
Issuance of Class B common stock to Sponsor | $ 200,000 | $ 200,000 | $ 400,000 | $ 200,000 | $ 200,000 | $ 200,000 | |||
Contingent forward contract liability reclassified | 39,564 | 39,563 | |||||||
Reclassification of preferred stock warrant liability to Series D | $ 9,936 | ||||||||
Total proceeds | $ 1,324,485 | $ 1,311,548 | |||||||
Series D | Conversion of preferred stock warrant to Series D | |||||||||
Class of Stock [Line Items] | |||||||||
Conversion of Convertible Notes | $ 3,000 |
CONVERTIBLE PREFERRED SHARES_27
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Series E convertible preferred share Issuance (Narrative) (Details) $ / shares in Units, $ in Thousands | Dec. 24, 2020USD ($)shares | Sep. 21, 2020USD ($)item$ / sharesshares | Apr. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2021USD ($) | Feb. 28, 2021USD ($)$ / sharesshares | Apr. 30, 2021USD ($)$ / shares | Jun. 30, 2021USD ($)shares | Jun. 30, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Class of Stock [Line Items] | ||||||||||
Contingent Forward Contract Liability , Noncurrent | $ 12,400 | $ 12,400 | $ 30,844 | |||||||
Maximum aggregate number of shares sold | shares | 437,182,072 | 437,182,072 | 437,182,072 | 400,510,507 | 286,632,918 | |||||
share-based compensation, expense | $ 20,700 | $ 123,600 | ||||||||
Common shares, shares authorized | shares | 498,017,734 | 498,017,734 | 498,017,734 | 450,000,098 | 335,130,459 | |||||
Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Contingent Forward Contract Liability , Noncurrent | $ 0 | $ 0 | ||||||||
Series E | ||||||||||
Class of Stock [Line Items] | ||||||||||
Maximum aggregate number of shares sold | shares | 189,795,981 | 189,795,981 | 113,877,589 | |||||||
share-based compensation, expense | $ 20,700 | $ 123,600 | ||||||||
Series E | Security Purchase Agreement | ||||||||||
Class of Stock [Line Items] | ||||||||||
Contingent Forward Contract Liability , Noncurrent | $ 800 | $ 800 | ||||||||
Number of sets of milestone conditions relating to further development and enhancement in marketing, product, and administrative activities | item | 2 | |||||||||
Fair value of contingent forward contract | 110,500 | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ 109,700 | |||||||||
Number of shares issued | shares | 50,612,262 | |||||||||
Carrying amount per share | $ / shares | $ 7.90 | $ 7.90 | ||||||||
Proceeds from issuance of convertible preferred shares | $ 400,000 | |||||||||
Increase in fair value | $ 109,700 | |||||||||
Series E | First tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from agreement received in tranches | $ 500,000 | |||||||||
Number of shares issued | shares | 63,265,327 | |||||||||
Series E | Second tranche | ||||||||||
Class of Stock [Line Items] | ||||||||||
Proceeds from agreement received in tranches | $ 400,000 | |||||||||
Number of shares issued | shares | 50,612,262 | |||||||||
Series E | Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares issued | shares | 25,306,130 | |||||||||
Carrying amount per share | $ / shares | $ 7.90 | $ 7.90 | ||||||||
Proceeds from issuance of convertible preferred shares | $ 92,900 | $ 107,100 | $ 200,000 | |||||||
Series E | Management | Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares issued | shares | 1,147,577 | |||||||||
Series E | Director | Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares issued | shares | 627,347 | |||||||||
Series E | CEO | Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares issued | shares | 202,449 | |||||||||
Series E | Shareholders other than Ayar | Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Number of shares issuable | shares | 8,977,769 | |||||||||
Carrying amount per share | $ / shares | $ 7.90 | |||||||||
Aggregate consideration from issuance of shares | $ 71,000 | |||||||||
Series E | Senior management employees, directors, consultants, advisors and/or contractors of the Company | ||||||||||
Class of Stock [Line Items] | ||||||||||
Maximum aggregate number of shares sold | shares | 75,900,000 | |||||||||
Series E | Senior management employees, directors, consultants, advisors and/or contractors of the Company | Fourth closing | ||||||||||
Class of Stock [Line Items] | ||||||||||
Carrying amount per share | $ / shares | $ 7.90 |
CONVERTIBLE PREFERRED SHARES_28
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Convertible Preferred Shares (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Jun. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2019 | |
Class of Stock [Line Items] | ||||
Convertible preferred shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Convertible preferred shares authorized | 400,510,507 | 437,182,072 | 437,182,072 | 286,632,918 |
Number of shares subject to redemption | 362,011,991 | 437,182,072 | 190,084,166 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 2,494,076 | $ 5,836,785 | ||
Convertible preferred shares, liquidation preference | $ 3,497,913 | $ 4,399,174 | $ 1,084,191 | |
Series A | ||||
Class of Stock [Line Items] | ||||
Convertible preferred shares authorized | 12,120,000 | 12,120,000 | 12,120,000 | |
Number of shares subject to redemption | 12,120,000 | 12,120,000 | 12,120,000 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 11,925 | $ 11,925 | $ 11,925 | |
Convertible preferred shares, conversion price per share to common shares | $ 1 | $ 1 | $ 1 | |
Convertible preferred shares, liquidation per share amount | $ 1 | $ 1 | $ 1 | |
Convertible preferred shares, liquidation preference | $ 12,120 | $ 12,120 | $ 12,120 | |
Series B | ||||
Class of Stock [Line Items] | ||||
Convertible preferred shares authorized | 9,333,333 | 8,000,000 | 9,333,333 | |
Number of shares subject to redemption | 9,333,333 | 8,000,000 | 9,333,333 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 23,740 | $ 23,740 | $ 27,740 | |
Convertible preferred shares, conversion price per share to common shares | $ 3 | $ 3 | $ 3 | |
Convertible preferred shares, liquidation per share amount | $ 3 | $ 3 | $ 3 | |
Convertible preferred shares, liquidation preference | $ 28,000 | $ 24,000 | $ 28,000 | |
Number of shares extinguished | 1,333,333 | |||
Aggregate carrying amount of shares extinguished | $ 3,000 | |||
Series C | ||||
Class of Stock [Line Items] | ||||
Convertible preferred shares authorized | 31,170,225 | 22,532,244 | 31,170,225 | |
Number of shares subject to redemption | 22,532,244 | 22,532,244 | 26,884,509 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 137,475 | $ 137,475 | $ 162,360 | |
Convertible preferred shares, conversion price per share to common shares | $ 6.41 | $ 6.41 | $ 6.41 | |
Convertible preferred shares, liquidation per share amount | $ 6.41 | $ 6.41 | $ 6.41 | |
Convertible preferred shares, liquidation preference | $ 144,432 | $ 144,432 | $ 172,331 | |
Series D | ||||
Class of Stock [Line Items] | ||||
Convertible preferred shares authorized | 234,009,360 | 204,733,847 | 234,009,360 | |
Number of shares subject to redemption | 204,148,825 | 204,733,847 | 141,746,324 | |
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 1,311,548 | $ 1,324,485 | $ 871,985 | |
Convertible preferred shares, conversion price per share to common shares | $ 6.15 | $ 6.15 | $ 6.15 | |
Convertible preferred shares, liquidation per share amount | $ 9.62 | $ 9.62 | $ 9.62 | |
Convertible preferred shares, liquidation preference | $ 1,963,912 | $ 1,969,540 | $ 1,362,891 | |
Series E | ||||
Class of Stock [Line Items] | ||||
Convertible preferred shares authorized | 113,877,589 | 189,795,981 | ||
Number of shares subject to redemption | 113,877,589 | 189,795,981 | ||
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | $ 1,009,388 | $ 4,339,160 | ||
Convertible preferred shares, conversion price per share to common shares | $ 7.90 | $ 7.90 | ||
Convertible preferred shares, liquidation per share amount | $ 11.85 | $ 11.85 | ||
Convertible preferred shares, liquidation preference | $ 1,349,449 | $ 2,249,082 |
CONVERTIBLE PREFERRED SHARES_29
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Dividends (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Noncumulative dividends rate (as a percent) | 8.00% | ||
Dividend declared | $ 0 | $ 0 | $ 0 |
Series A | |||
Class of Stock [Line Items] | |||
Noncumulative dividends at an annual rate (in dollar per share) | $ 0.08 | $ 0.08 | |
Series B | |||
Class of Stock [Line Items] | |||
Noncumulative dividends at an annual rate (in dollar per share) | 0.24 | 0.24 | |
Series C | |||
Class of Stock [Line Items] | |||
Noncumulative dividends at an annual rate (in dollar per share) | $ 0.5128 | $ 0.5128 | |
Series D and Series E | |||
Class of Stock [Line Items] | |||
Noncumulative dividends rate (as a percent) | 8.00% |
CONVERTIBLE PREFERRED SHARES_30
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Liquidation (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Series E | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1.5 | 1.5 |
Series D | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1.5 | 1.5 |
Series C | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1 | 1 |
Series B | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1 | 1 |
Series A | ||
Class of Stock [Line Items] | ||
Number of times of original issue price per share, each holder is entitled to receive at the time of liquidation | 1 | 1 |
CONVERTIBLE PREFERRED SHARES_31
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Automatic Conversion (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Minimum pre-offering market capitalization required for automatic conversion | $ 2,500 | $ 2,500 |
Minimum gross proceeds from sale of issuance of shares required for automatic conversion | $ 200 | $ 200 |
Series A | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series B | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series C | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series D | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series A, Series B, Series C, Series D | ||
Class of Stock [Line Items] | ||
Percentage of vote or written consent of the holders for automatic conversion | 66.67% | |
Series E | ||
Class of Stock [Line Items] | ||
Number of shares issuable upon conversion of each convertible preferred stock | 1 | |
Percentage of vote or written consent of the holders for automatic conversion | 50.00% | 50.00% |
CONVERTIBLE PREFERRED SHARES_32
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - Shares (Details) - shares | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT | ||||
Class A common stock subject to possible redemption | 437,182,072 | 362,011,991 | 190,084,166 | |
Share options outstanding | 26,099,336 | 26,730,453 | 26,212,498 | 14,716,256 |
Restricted stock unit outstanding | 15,763,598 | |||
Convertible preferred share warrant | 585,022 | 585,022 | ||
Shares available for future grants | 4,469,725 | 3,981,178 | 7,336,862 | 19,257,865 |
Total common shares reserved | 483,514,731 | 393,308,644 |
SHARES-BASED AWARDS (Details)_2
SHARES-BASED AWARDS (Details) - shares | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Dec. 31, 2020 | Jan. 31, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration term | 10 years | 10 years | |||
Number of Options | 4,469,725 | 3,981,178 | 7,336,862 | 19,257,865 | |
Shares reserved for future issuance | 483,514,731 | 393,308,644 | |||
Vesting on the first anniversary of the grant date | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | 4 years | |||
Vesting percentage | 25.00% | 25.00% | |||
Vesting ratably each month over the next three years | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
Vesting percentage | 75.00% | ||||
2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized to issue | 5,000,000 | 5,000,000 | |||
Number of Options | 0 | 0 | 0 | ||
2014 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized to issue | 31,884,190 | 31,884,190 | |||
Number of Options | 0 | 3,981,178 | 7,336,862 | ||
2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized to issue | 16,616,225 | ||||
Number of Options | 4,469,725 | ||||
Shares reserved for future issuance | 3,981,178 | ||||
Increase in number of shares reserved for issuance | 2,033,333 |
SHARES-BASED AWARDS - Summary_2
SHARES-BASED AWARDS - Summary of share options (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||||
Balance at the beginning | 26,730,453 | 26,212,498 | 14,716,256 | |
Options granted | 3,177,756 | 9,009,210 | 12,943,015 | |
Options exercised | (3,028,530) | (2,837,729) | (424,761) | |
Options canceled | (780,343) | (5,653,526) | (1,022,012) | |
Balance at the end | 26,099,336 | 26,730,453 | 26,212,498 | 14,716,256 |
Options vested and exercisable at the end | 14,842,155 | 26,111,472 | ||
Weighted Average Exercise Price | ||||
Balance at the beginning (in dollars per share) | $ 2.21 | $ 1.58 | $ 1.06 | |
Options granted (in dollars per share) | 7.51 | 3.06 | 2.19 | |
Options exercised (in dollars per share) | 1.74 | 1.15 | 1.22 | |
Options canceled (in dollars per share) | 3.13 | 1.17 | 1.92 | |
Balance at the end (in dollars per share) | 1.80 | 2.21 | $ 1.58 | $ 1.06 |
Options vested and exercisable at the end (in dollars per share) | $ 1.88 | $ 1.75 | ||
Weighted-Average Remaining Contractual Term and Intrinsic Value | ||||
Weighted average remaining contractual term (in years) | 8 years 6 months | 7 years 9 months | 6 years 3 months 7 days | 6 years 4 months 13 days |
Options vested and exercisable at the end (in years) | 6 years 6 months | 6 years 9 months | ||
Balance at the end (in dollars) | $ 2,491,171 | $ 118,155 | $ 21,236 | $ 12,341 |
Options vested and exercisable at the end (in dollars) | $ 883,724 | $ 75,944 |
SHARES-BASED AWARDS - Additio_2
SHARES-BASED AWARDS - Additional information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
SHARES-BASED AWARDS | ||||
Aggregate intrinsic value of options exercised | $ 102.5 | $ 0.7 | $ 8.3 | $ 0.4 |
Total fair value of share options granted | 23.9 | 10.1 | 14.8 | 13.9 |
Total fair value of share options vested | 3.1 | $ 1.8 | 3.9 | 6.9 |
Unamortized share-based compensation | $ 817.2 | $ 14.9 | $ 6.6 | |
Unamortized share-based compensation, weighted average remaining amortization period | 3 years 10 months 24 days | 3 years | 2 years 8 months 12 days |
SHARES-BASED AWARDS - Summary_3
SHARES-BASED AWARDS - Summary of RSU award activity under the 2021 Plan (Details) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Restricted Stock Units | |
Nonvested balance at the end | 15,763,598 |
2021 Plan | RSU award | |
Restricted Stock Units | |
Nonvested balance at the beginning | 0 |
Granted | 15,789,748 |
Cancelled/Forfeited | (26,150) |
Nonvested balance at the end | 15,763,598 |
Weighted-Average Grant-Date Fair Value | |
Nonvested balance at the beginning (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 50.71 |
Cancelled/Forfeited (in dollars per share) | $ / shares | 56.06 |
Nonvested balance at the end (in dollars per share) | $ / shares | $ 50.70 |
2021 Plan | RSU award | Time-Based Shares | |
Restricted Stock Units | |
Nonvested balance at the beginning | 0 |
Granted | 9,729,078 |
Cancelled/Forfeited | (26,150) |
Nonvested balance at the end | 9,702,928 |
2021 Plan | RSU award | Performance-Based Shares | |
Restricted Stock Units | |
Nonvested balance at the beginning | 0 |
Granted | 6,060,670 |
Cancelled/Forfeited | 0 |
Nonvested balance at the end | 6,060,670 |
SHARES-BASED AWARDS - RSUs (Det
SHARES-BASED AWARDS - RSUs (Details) - RSU award | 6 Months Ended |
Jun. 30, 2021installmentitemshares | |
Non-CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of RSU that will be satisfied in 375 days | 25.00% |
Period after which first vesting date started | 375 days |
Time-Based Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Service condition period | 4 years |
Time-Based Shares | CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 5,232,507 |
Number of equal quarterly installments | installment | 16 |
Period after which first vesting date started | 2 months |
Performance-Based Shares | CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of tranches based on the achievement of market capitalization goals | item | 5 |
Duration for each tranche | 6 months |
Maximum vesting period | 5 years |
SHARES-BASED AWARDS - Grant dat
SHARES-BASED AWARDS - Grant date using Monte Carlo simulation model (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average volatility | 41.90% | 42.70% | 58.98% | 42.77% | ||
Expected term (in years) | 5 years 10 months 24 days | 6 years | 5 years 10 months 24 days | 5 years 6 months | ||
Risk-free interest rate | 0.60% | 1.10% | 0.75% | 2.11% | ||
Expected dividends | 0.00% | 0.00% | ||||
Compensation expense | $ 24,449 | $ 1,010 | $ 129,244 | $ 1,981 | $ 4,614 | $ 7,719 |
Share-based compensation related to Series E convertible preferred shares | $ 20,700 | $ 123,600 | ||||
RSU award | 2021 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average volatility | 60.00% | |||||
Expected term (in years) | 5 years | |||||
Risk-free interest rate | 0.90% | |||||
Expected dividends | 0.00% | |||||
Compensation expense | $ 0 |
SHARES-BASED AWARDS - Stateme_2
SHARES-BASED AWARDS - Statements of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | $ 24,449 | $ 1,010 | $ 129,244 | $ 1,981 | $ 4,614 | $ 7,719 |
Cost of revenue | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | 213 | 443 | ||||
Research and development | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | 13,539 | 552 | 26,703 | 1,393 | 3,724 | 4,770 |
Selling, general and administrative | ||||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||||
Share-based compensation recorded | $ 10,910 | $ 458 | $ 102,541 | $ 588 | $ 677 | $ 2,506 |
LEASES - Consolidated balance s
LEASES - Consolidated balance sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating and finance leases consolidated balance sheet | ||||
Operating lease right-of-use assets | $ 126,655 | $ 90,932 | ||
Operating lease liabilities, current portion | 11,620 | |||
Other long-term liabilities | 152,639 | |||
Present value of lease obligations | 164,259 | |||
Property, plant and equipment, net | 6,442 | |||
Total finance lease assets | 6,442 | |||
Finance lease liability, current portion | 2,572 | |||
Finance lease liabilities, net of current portion | 3,963 | $ 1,996 | $ 244 | |
Present value of lease obligations | $ 6,535 | |||
Other liabilities NonCurrent | Other long-term liabilities | |||
Other liabilities NonCurrent | Other long-term liabilities | |||
Other liabilities current | Other liabilities | |||
Property, plant and equipment, net | Property, plant and equipment, net |
LEASES - consolidated statement
LEASES - consolidated statement of operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Components of lease expense | ||
Operating lease expense | $ 7,219 | $ 13,522 |
Variable lease expense | 579 | 1,159 |
Amortization of leased assets | 637 | 1,232 |
Interest on lease liabilities | 104 | 213 |
Total finance lease expense | 741 | 1,445 |
Total lease expense | $ 8,539 | $ 16,126 |
LEASES - Other information rela
LEASES - Other information related to leases - (Details) | Jun. 30, 2021 |
LEASES | |
Weighted-average remaining lease term (in years): Operating leases | 8 years 2 months 12 days |
Weighted-average remaining lease term (in years): Finance leases | 2 years 6 months |
Weighted-average discount rate: Operating leases | 11.03% |
Weighted-average discount rate: Finance leases | 6.65% |
LEASES - Supplemental cash flow
LEASES - Supplemental cash flow information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
LEASES | |
Operating cash flows from operating leases | $ 7,742 |
Operating cash flows from finance leases (interest payments) | 213 |
Financing cash flows from finance leases | 1,364 |
Leased assets obtained in exchange for new operating lease liabilities | 43,780 |
Leased assets obtained in exchange for new finance lease liabilities | $ 4,437 |
LEASES - the Company's operatin
LEASES - the Company's operating and finance lease liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | |||
Six months ending June 30, 2021 | $ 14,825 | ||
2022 | 31,431 | ||
2023 | 30,577 | ||
2024 | 30,822 | ||
2025 | 29,778 | ||
Thereafter | 121,109 | ||
Total minimum lease payments | 258,542 | ||
Less: Interest | (94,283) | ||
Present value of lease obligations | 164,259 | ||
Less: Current portion | 11,620 | ||
Operating leases liabilities, net of current portion | 152,639 | ||
Finance Leases | |||
Six months ending June 30, 2021 | 1,496 | ||
2022 | 2,810 | ||
2023 | 2,457 | ||
2024 | 318 | ||
Total minimum lease payments | 7,081 | ||
Less: Interest | (546) | ||
Present value of lease obligations | 6,535 | ||
Less: Current portion | 2,572 | ||
Long-term portion of lease obligations | $ 3,963 | $ 1,996 | $ 244 |
LEASES - future minimum lease p
LEASES - future minimum lease payments under non-cancellable leases (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2021 | $ 25,490 |
2022 | 28,837 |
2023 | 27,633 |
2024 | 28,207 |
2025 | 27,474 |
Thereafter | 116,155 |
Total minimum lease payments | 253,796 |
Future minimum payments for the capital lease | |
2021 | 1,729 |
2022 | 1,547 |
2023 | 1,174 |
2024 | 9 |
Total minimum lease payments | 4,459 |
Less: Interest | (1,202) |
Present value of lease obligations | 3,257 |
Less: Current portion | (1,261) |
Long-term portion of lease obligations | $ 1,996 |
COMMITMENTS AND CONTINGENCIES_8
COMMITMENTS AND CONTINGENCIES - Estimated purchase commitment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
COMMITMENTS AND CONTINGENCIES | ||
2021 (remainder of the year) | $ 104,370 | |
2022 | 202,400 | $ 101,200 |
2023 | 202,400 | 202,400 |
2024 | 202,400 | |
Total | $ 509,170 | $ 506,000 |
COMMITMENTS AND CONTINGENCIES_9
COMMITMENTS AND CONTINGENCIES - Additional information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Commitments And Contingencies Disclosure [Line Items] | ||
Purchase commitment period | 3 years | |
Transaction bonus payable | $ 2,000,000 | |
Indemnification obligations | 24,600,000 | $ 15,500,000 |
Pending Litigation [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Litigation outstanding | 0 | |
Threatened Litigation [Member] | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Litigation outstanding | 0 | |
ARIZONA | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Commitments related to manufacturing plant and equipment | $ 79,200,000 | $ 406,100,000 |
INCOME TAXES (Details)_2
INCOME TAXES (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 29, 2020 | Dec. 31, 2018 |
INCOME TAX | |||||||||
U.S. statutory rate | 35.00% | 21.00% | 21.00% | 21.00% | |||||
Income tax provision (benefit) | $ 5 | $ (28) | $ 9 | $ (100) | $ (188) | $ 23 | |||
Effective tax rate | 0.00% | 0.00% | |||||||
Unrecognized Tax Benefits | $ 65,400 | $ 65,400 | $ 42,894 | $ 20,635 | $ 11,647 | ||||
Unrecognized tax benefits impact on effective tax rate | $ 2,600 | $ 2,600 | |||||||
Net operating losses utilization suspended | $ 5,000 | ||||||||
Research credit utilization suspended | $ 5,000 |
NET LOSS PER SHARE (Details)_2
NET LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
NET LOSS PER SHARE | ||||||
Operating losses, including net losses | $ (261,726) | $ (117,285) | $ (1,009,678) | $ (246,868) | $ (719,380) | $ (277,357) |
Deemed dividend related to the issuance of Series E convertible preferred shares | 0 | (2,167,332) | ||||
Non-redeemable Net loss | $ (261,726) | $ (117,285) | $ (3,177,010) | $ (246,868) | $ (705,596) | $ (269,422) |
Weighted average shares used in computing net loss per share attributable to common shareholders - basic and diluted (in shares) | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 |
Denominator: | ||||||
Weighted-average shares outstanding - basic | 9,389,540 | 7,789,421 | ||||
Effect of dilutive potential common shares from share options, share awards and employee share purchase plan | 0 | 0 | ||||
Net loss per share: | ||||||
Net loss per share attributable to common shareholders - basic and diluted (in dollars per share) | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) |
NET LOSS PER SHARE - Potential
NET LOSS PER SHARE - Potential Common Shares (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 389,327,467 | 216,881,686 | ||
RSU award | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 15,763,598 | |||
Convertible preferred shares outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 437,182,072 | 252,486,667 | 362,011,991 | 190,084,166 |
Share options outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 26,099,336 | 22,729,435 | 26,730,453 | 26,212,498 |
Convertible preferred share warrant | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potential convertible securities to common shares | 0 | 585,022 | 585,023 | 585,023 |
EMPLOYEE BENEFIT PLAN (Detail_2
EMPLOYEE BENEFIT PLAN (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE BENEFIT PLAN | |||
Maximum percentage of employees contribution | 100.00% | 100.00% | |
Employer contribution | $ 0 | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)_2
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Millions | Jul. 23, 2021USD ($)borrower$ / sharesshares | Jul. 31, 2021USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2021$ / shares | Dec. 31, 2020$ / shares | Dec. 31, 2019$ / shares |
Subsequent Event [Line Items] | ||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Exchange ratio based on equity value | shares | 2.644 | |||||
Equity Value | $ 12,300 | |||||
Amount added to cash and cash equivalents and indebtedness for borrowed money to identify equity value | $ 11,800 | |||||
Number of business days prior to closing to identify equity value | borrower | 2 | |||||
Stock Issued During Period, Shares, New Issues | shares | 1,193,226,511 | |||||
Lease Expiration Date | Jun. 30, 2021 | |||||
Base rent | $ 0.6 | |||||
Minimum | ||||||
Subsequent Event [Line Items] | ||||||
Base rent | $ 0.1 | |||||
Maximum | ||||||
Subsequent Event [Line Items] | ||||||
Base rent | $ 0.5 | |||||
Class A Common Stock | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, par value | $ / shares | $ 0.0001 |
BALANCE SHEET
BALANCE SHEET | Dec. 31, 2020USD ($) |
Current Assets | |
Cash | $ 614,412,000 |
Prepaid expenses | 21,840,000 |
Total Current Assets | 662,556,000 |
TOTAL ASSETS | 1,402,681,000 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
Total Liabilities | 227,382,000 |
Commitments | |
Class A common stock subject to possible redemption 185,343,777 shares at redemption value | 2,494,076,000 |
Current liabilities | |
Total Current Liabilities | 185,283,000 |
Deferred tax liability | 234,000 |
Stockholders' Equity | |
Common stock value | 1,000 |
Additional paid-in capital | 38,115,000 |
Accumulated deficit | (1,356,893,000) |
Total Stockholders' Equity | (1,318,777,000) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,402,681,000 |
Churchill Capital Corp IV | |
Current Assets | |
Cash | 3,592,857 |
Prepaid expenses | 937,786 |
Total Current Assets | 4,530,643 |
Cash and marketable securities held in Trust Account | 2,070,086,006 |
TOTAL ASSETS | 2,074,616,649 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
Current liabilities - accrued expenses | 1,446,951 |
Current income taxes payable | 81,422 |
Warrant liability | 142,200,500 |
Deferred underwriting payable | 72,450,000 |
Total Liabilities | 216,178,873 |
Commitments | |
Class A common stock subject to possible redemption 185,343,777 shares at redemption value | 1,853,437,770 |
Current liabilities | |
Income taxes payable | 81,422 |
Total Current Liabilities | 1,528,373 |
Stockholders' Equity | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding | |
Additional paid-in capital | 68,460,540 |
Accumulated deficit | (63,467,875) |
Total Stockholders' Equity | 5,000,006 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,074,616,649 |
Class A Common Stock | Churchill Capital Corp IV | |
Stockholders' Equity | |
Common stock value | 2,166 |
Total Stockholders' Equity | 2,166 |
Class B Common Stock | Churchill Capital Corp IV | |
Stockholders' Equity | |
Common stock value | 5,175 |
Total Stockholders' Equity | $ 5,175 |
BALANCE SHEET (Parenthetical)
BALANCE SHEET (Parenthetical) - $ / shares | Jul. 23, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 03, 2020 | Jul. 30, 2020 | Dec. 31, 2019 |
Temporary Equity, Shares Outstanding | 437,182,072 | 362,011,991 | 190,084,166 | ||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common Stock, Shares Authorized | 498,017,734 | 498,017,734 | 450,000,098 | 335,130,459 | |||||
Common Stock, Shares, Issued | 13,917,981 | 10,889,451 | 8,051,722 | ||||||
Common Stock, Shares, Outstanding | 13,917,981 | 10,889,451 | 8,051,722 | ||||||
Churchill Capital Corp IV | |||||||||
Temporary Equity, Shares Outstanding | 185,343,777 | 186,248,002 | 191,473,711 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | |||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | ||||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | ||||||
Class A Common Stock | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | ||||||||
Class A Common Stock | Churchill Capital Corp IV | |||||||||
Temporary Equity, Shares Outstanding | 207,000,000 | 185,343,777 | |||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |||||||
Common Stock, Shares, Issued | 0 | 21,656,223 | |||||||
Common Stock, Shares, Outstanding | 0 | 21,656,223 | |||||||
Class B Common Stock | Churchill Capital Corp IV | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common Stock, Shares, Issued | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | |||||
Common Stock, Shares, Outstanding | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 |
STATEMENT OF OPERATIONS
STATEMENT OF OPERATIONS - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Formation and operating costs | $ 249,074,000 | $ 113,479,000 | $ 548,095,000 | $ 237,483,000 | $ 600,133,000 | $ 258,598,000 | ||||
Loss from operations | (248,919,000) | (113,420,000) | (547,712,000) | (237,416,000) | (599,227,000) | (257,934,000) | ||||
Other income: | ||||||||||
Loss on warrant liabilities | (57,000) | (6,976,000) | (114,000) | (1,205,000) | (406,000) | |||||
Other expense net | (12,802,000) | (3,893,000) | (461,957,000) | (9,552,000) | (120,341,000) | (19,400,000) | ||||
Loss before provision for income taxes | (261,721,000) | (117,313,000) | (1,009,669,000) | (246,968,000) | (719,568,000) | (277,334,000) | ||||
Provision for income taxes | (5,000) | 28,000 | (9,000) | 100,000 | 188,000 | (23,000) | ||||
Net loss | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 | ||||
Basic and diluted net loss per share, Non-redeemable common stock | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) | ||||
Churchill Capital Corp IV | ||||||||||
Formation and operating costs | $ 1,000 | $ 562,194 | $ 3,652,018 | $ 2,976,423 | ||||||
Loss from operations | (1,000) | (562,194) | (3,652,018) | (2,976,423) | ||||||
Other income: | ||||||||||
Interest earned on marketable securities held in Trust Account | 27,453 | 204,779 | 531,361 | |||||||
Loss on warrant liabilities | (587,379,256) | $ (51,980,500) | (1,399,753,658) | (58,778,500) | ||||||
Transaction costs attributable to the Initial Public Offering | (2,167,536) | (2,167,536) | ||||||||
Unrealized gain on marketable securities held in Trust Account | (3,956) | 4,645 | ||||||||
Other expense net | (588,255,759) | (1,456,940,515) | (60,410,030) | |||||||
Loss before provision for income taxes | (1,000) | (588,817,953) | (1,460,592,533) | (63,386,453) | ||||||
Provision for income taxes | (1,962) | (25,540) | (81,422) | |||||||
Net loss | $ (1,000) | $ (588,819,915) | $ (54,303,650) | $ (54,304,650) | $ (1,460,618,073) | $ (63,467,875) | ||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 207,000,000 | 191,473,711 | 191,473,711 | 201,682,674 | 188,268,610 | |||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 45,000,000 | 51,750,000 | 59,043,747 | 54,862,784 | 58,496,884 | 62,139,949 | ||||
Basic and diluted net loss per share, Non-redeemable common stock | $ 0 | $ (11.38) | $ (0.92) | $ (0.99) | $ (24.97) | $ (1.02) | ||||
Class A Common Stock | Churchill Capital Corp IV | ||||||||||
Other income: | ||||||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ (1.02) |
STATEMENT OF CHANGES IN STOCKHO
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Common StockClass A Common StockChurchill Capital Corp IV | Common StockClass B Common StockChurchill Capital Corp IV | Common Stock | Additional Paid in CapitalChurchill Capital Corp IV | Additional Paid in Capital | Accumulated DeficitChurchill Capital Corp IV | Accumulated Deficit | Class A Common StockChurchill Capital Corp IV | Class B Common StockChurchill Capital Corp IV | Churchill Capital Corp IV | Total |
Balance at Dec. 31, 2019 | $ 1,000 | $ 16,432,000 | $ (637,513,000) | $ (621,080,000) | |||||||
Balance (in shares) at Dec. 31, 2019 | 8,051,722 | ||||||||||
Net loss | (246,868,000) | (246,868,000) | |||||||||
Balance at Jun. 30, 2020 | $ 1,000 | $ 19,825 | 18,736,000 | $ (1,000) | (884,381,000) | $ 0 | $ 5,175 | $ 24,000 | (865,644,000) | ||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | 0 | 51,750,000 | ||||||||
Balance at Dec. 31, 2019 | $ 1,000 | 16,432,000 | (637,513,000) | (621,080,000) | |||||||
Balance (in shares) at Dec. 31, 2019 | 8,051,722 | ||||||||||
Net loss | (719,380,000) | ||||||||||
Balance at Dec. 31, 2020 | $ 2,166 | $ 5,175 | $ 1,000 | 68,460,540 | 38,115,000 | (63,467,875) | (1,356,893,000) | $ 2,166 | $ 5,175 | 5,000,006 | (1,318,777,000) |
Balance (in shares) at Dec. 31, 2020 | 21,656,223 | 51,750,000 | 10,889,451 | 21,656,223 | 51,750,000 | ||||||
Balance at Mar. 31, 2020 | $ 1,000 | 17,436,000 | (767,096,000) | (749,659,000) | |||||||
Balance (in shares) at Mar. 31, 2020 | 8,186,387 | ||||||||||
Net loss | (117,285,000) | (117,285,000) | |||||||||
Balance at Jun. 30, 2020 | $ 1,000 | 19,825 | 18,736,000 | (1,000) | (884,381,000) | $ 0 | $ 5,175 | 24,000 | (865,644,000) | ||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | 0 | 51,750,000 | ||||||||
Balance at Apr. 29, 2020 | $ 0 | $ 0 | 0 | 0 | $ 0 | $ 0 | 0 | ||||
Balance (in shares) at Apr. 29, 2020 | 0 | 0 | 0 | 0 | |||||||
Issuance of Class B common stock | 19,825 | $ 5,175 | 25,000 | ||||||||
Issuance of Class B common stock (in shares) | 51,750,000 | ||||||||||
Net loss | (1,000) | ||||||||||
Balance at Jun. 30, 2020 | $ 1,000 | 19,825 | 18,736,000 | (1,000) | (884,381,000) | $ 0 | $ 5,175 | 24,000 | (865,644,000) | ||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | 0 | 51,750,000 | ||||||||
Balance at Apr. 29, 2020 | $ 0 | $ 0 | 0 | 0 | $ 0 | $ 0 | 0 | ||||
Balance (in shares) at Apr. 29, 2020 | 0 | 0 | 0 | 0 | |||||||
Net loss | (54,304,650) | ||||||||||
Balance at Sep. 30, 2020 | 5,000,006 | ||||||||||
Balance at Apr. 29, 2020 | $ 0 | $ 0 | 0 | 0 | $ 0 | $ 0 | 0 | ||||
Balance (in shares) at Apr. 29, 2020 | 0 | 0 | 0 | 0 | |||||||
Issuance of Class B common stock | $ 5,175 | 19,825 | 25,000 | ||||||||
Issuance of Class B common stock (in shares) | 51,750,000 | ||||||||||
Sale of 207,000,000 Units, net of underwriting discounts and offering expenses | $ 20,700 | 1,921,859,951 | 1,921,880,651 | ||||||||
Sale of 207,000,000 Units, net of underwriting discounts and offering expenses (in shares) | 207,000,000 | ||||||||||
Class A common stock subject to possible redemption | $ (18,534) | (1,853,419,236) | (1,853,437,770) | ||||||||
Class A common stock subject to possible redemption (in shares) | (185,343,777) | ||||||||||
Net loss | (63,467,875) | (63,467,875) | |||||||||
Balance at Dec. 31, 2020 | $ 2,166 | $ 5,175 | $ 1,000 | 68,460,540 | 38,115,000 | (63,467,875) | (1,356,893,000) | $ 2,166 | $ 5,175 | 5,000,006 | (1,318,777,000) |
Balance (in shares) at Dec. 31, 2020 | 21,656,223 | 51,750,000 | 10,889,451 | 21,656,223 | 51,750,000 | ||||||
Balance at Jun. 30, 2020 | $ 1,000 | 19,825 | 18,736,000 | (1,000) | (884,381,000) | $ 0 | $ 5,175 | 24,000 | (865,644,000) | ||
Balance (in shares) at Jun. 30, 2020 | 8,400,474 | 0 | 51,750,000 | ||||||||
Net loss | (54,303,650) | ||||||||||
Balance at Sep. 30, 2020 | 5,000,006 | ||||||||||
Balance at Dec. 31, 2020 | $ 2,166 | $ 5,175 | $ 1,000 | 68,460,540 | 38,115,000 | (63,467,875) | (1,356,893,000) | $ 2,166 | $ 5,175 | 5,000,006 | (1,318,777,000) |
Balance (in shares) at Dec. 31, 2020 | 21,656,223 | 51,750,000 | 10,889,451 | 21,656,223 | 51,750,000 | ||||||
Class A common stock subject to possible redemption | (68,460,540) | (148,099,524) | $ (2,166) | (216,562,230) | |||||||
Class A common stock subject to possible redemption (in shares) | (21,656,223) | ||||||||||
Balance at Mar. 31, 2021 | $ 1,000 | 0 | 6,198,000 | (1,083,365,557) | (4,234,062,000) | $ 0 | $ 5,175 | (1,083,360,382) | (4,227,863,000) | ||
Balance (in shares) at Mar. 31, 2021 | 13,498,196 | 0 | 51,750,000 | ||||||||
Balance at Dec. 31, 2020 | $ 2,166 | $ 5,175 | $ 1,000 | 68,460,540 | 38,115,000 | (63,467,875) | (1,356,893,000) | $ 2,166 | $ 5,175 | 5,000,006 | (1,318,777,000) |
Balance (in shares) at Dec. 31, 2020 | 21,656,223 | 51,750,000 | 10,889,451 | 21,656,223 | 51,750,000 | ||||||
Net loss | (1,009,678,000) | (1,460,618,073) | (1,009,678,000) | ||||||||
Balance at Jun. 30, 2021 | $ 1,000 | 26,615,000 | (1,672,185,472) | (4,495,788,000) | $ 0 | $ 5,175 | (1,672,180,297) | (4,469,172,000) | |||
Balance (in shares) at Jun. 30, 2021 | 13,917,981 | 0 | 51,750,000 | ||||||||
Balance at Mar. 31, 2021 | $ 1,000 | 0 | 6,198,000 | (1,083,365,557) | (4,234,062,000) | $ 0 | $ 5,175 | (1,083,360,382) | (4,227,863,000) | ||
Balance (in shares) at Mar. 31, 2021 | 13,498,196 | 0 | 51,750,000 | ||||||||
Class A common stock subject to possible redemption | $ 0 | 0 | $ 0 | $ 0 | 0 | ||||||
Class A common stock subject to possible redemption (in shares) | 0 | 0 | |||||||||
Net loss | (261,726,000) | (588,819,915) | (261,726,000) | ||||||||
Balance at Jun. 30, 2021 | $ 1,000 | $ 26,615,000 | $ (1,672,185,472) | $ (4,495,788,000) | $ 0 | $ 5,175 | $ (1,672,180,297) | $ (4,469,172,000) | |||
Balance (in shares) at Jun. 30, 2021 | 13,917,981 | 0 | 51,750,000 |
STATEMENT OF CHANGES IN STOCK_2
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 8 Months Ended |
Dec. 31, 2020shares | |
Churchill Capital Corp IV | |
Partners' Capital Account, Units, Sale of Units | 207,000,000 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS | 8 Months Ended |
Dec. 31, 2020USD ($) | |
Cash Flows from Financing Activities: | |
Cash - End of period | $ 614,412,000 |
Churchill Capital Corp IV | |
Cash Flows from Operating Activities: | |
Net loss | (63,467,875) |
Adjustments to reconcile net loss to net cash used in operating activities: | |
Interest earned on marketable securities held in Trust Account | (531,361) |
Unrealized gain on marketable securities held in Trust Account | (4,645) |
Loss on warrant liabilities | 58,778,500 |
Transaction costs attributable to Initial Public Offering | 2,167,536 |
Changes in operating assets and liabilities: | |
Prepaid expenses | (937,786) |
Accrued expenses | 1,446,951 |
Income taxes payable | 81,422 |
Net cash used in operating activities | (2,467,258) |
Cash Flows from Investing Activities: | |
Investment of cash in Trust Account | (2,070,000,000) |
Cash withdrawn from Trust Account to pay taxes | 450,000 |
Net cash used in investing activities | (2,069,550,000) |
Cash Flows from Financing Activities: | |
Proceeds from issuance of Class B common stock to Sponsor | 25,000 |
Proceeds from Issuance Initial Public Offering | 2,033,596,400 |
Proceeds from sale of Private Placement Warrants | 42,850,000 |
Proceeds from promissory note - related party | 550,000 |
Repayment of promissory note - related party | (550,000) |
Payment of offering costs | (861,285) |
Net cash provided by used in financing activities | 2,075,610,115 |
Net Change in Cash | 3,592,857 |
Cash - Beginning of period | 0 |
Cash - End of period | 3,592,857 |
Non-Cash investing and financing activities: | |
Initial classification of Class A common stock subject to possible redemption | 1,914,737,110 |
Change in value of Class A common stock subject to possible redemption | (61,299,340) |
Deferred underwriting fee payable | $ 72,450,000 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1 DESCRIPTION OF BUSINESS Overview Atieva, Inc. and its wholly owned subsidiaries (collectively, “Lucid,” the “Company,” “we,” “us” or “our”) is a technology and automotive company. The Company was founded in Silicon Valley in 2007 to develop the next generation of electric vehicle (“ EV On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. Upon the completion of the merger on July 23, 2021 (the "Closing"), the Company changed its name to Lucid Group, Inc. ("Lucid Group") and effectively comprised all of CCIV’s material operations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through June 30, 2021, the Company has incurred operating losses and negative cash flows from operating activities. For the six months ended June 30, 2021 and 2020, the Company has incurred operating losses, including net losses of $1.0 billion and $246.9 million, respectively. The Company has an accumulated deficit of $4.5 billion as of June 30, 2021. As of the end of June 30, 2021, the Company completed the first phase of the construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin commercial production of its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these condensed consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares. Upon the completion of the merger with CCIV, the Company received approximately an incremental $2.1 billion in cash from CCIV. In addition, the Company received $2.5 billion in Private Investment in Public Entity ("PIPE") investment. As such, this business combination eliminated the substantial doubt about the Company's ability to continue as a going concern within one year after the date the Current Report on Form 8-K/A to which this document forms an exhibit is available to be filed. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high-technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. | NOTE 1 — Overview The precursor of Atieva, Inc. (DBA Lucid Motors) was originally incorporated in the state of Delaware in December 2007 (“Atieva Delaware”). Atieva Delaware designed, developed, and built energy storage systems for electric vehicles and supplied automakers with the battery pack system needed to power hybrid, plug-in, and electric vehicles. In December 2009, Atieva Delaware and a newly incorporated Cayman Islands company (“Atieva Cayman”) entered into a share exchange agreement (the “Share Exchange Agreement”). Under the Share Exchange Agreement, (a) each holder of Atieva Delaware common shares exchanged such shares for shares of Atieva Cayman’s par value $0.0001 common shares (the “Common Shares”) on a one-for-one basis, and (b) each holder of Atieva Delaware Series A shares exchanged such shares for Atieva Cayman Series A shares on a one-for-one basis. Upon completion of the share exchange, Atieva Delaware was renamed as Atieva USA, Inc. with Atieva Cayman retaining the name of Atieva, Inc. Subsequent to the share exchange transaction, Atieva Delaware distributed 100% of its wholly owned subsidiaries in Hong Kong and Shanghai, China (“Atieva Hong Kong” and “Atieva Shanghai,” respectively) to Atieva Cayman in December 2010. In addition, Atieva Delaware registered a branch office in Taiwan in May 2008. In 2014, Atieva Cayman and its subsidiaries (the “Company” or “our”) changed its business model to focus on the design and development of high-performance fully electric vehicles and advanced electric vehicle powertrain components. As part of the build-out of the Company’s retail stores and service centers for distribution of vehicles to customers, the Company changed Atieva Delaware’s legal name to Lucid USA, Inc., and incorporated new subsidiaries in the U.S. and Canada, including Lucid Group USA, Inc., a Delaware corporation in August 2020, and Lucid Motors Canada ULC, a British Columbia unlimited liability company and an indirect, wholly-owned subsidiary of Lucid Group USA, Inc. in December 2020. The Company is headquartered in Newark, California and has various other global office locations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through December 31, 2020, the Company has incurred operating losses and negative cash flows from operating activities. For the years ended December 31, 2020 and 2019, the Company has incurred operating losses, including net losses of $719.4 million and $277.4 million, respectively. The Company has an accumulated deficit of $1.4 billion as of December 31, 2020. As of the end of 2020, the Company was finalizing construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin selling its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources were not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares, convertible notes, long-term debt and net proceeds from revenues. As discussed in Note 15 — Subsequent Events, on February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE: CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement with the Company for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. Upon completion of the merger, the Company expects to receive a minimum of $2.8 billion of incremental cash from a combination of cash at CCIV and a “Private Investor in Public Entity” (PIPE) investment. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. | |
Churchill Capital Corp IV | |||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | LUCID GROUP, INC. (successor to Churchill Capital Corp IV) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 (Unaudited) NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Churchill Capital Corp IV (formerly known as Annetta Acquisition Corp) (the “Company”) was incorporated in Delaware on April 30, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has one subsidiary, Air Merger Sub, Inc., a direct, wholly-owned subsidiary of the Company incorporated in Delaware on February 19, 2021 (“Merger Sub”) (see Note 6). As of June 30, 2021, the Company had not commenced any operations. All activity for the period from April 30, 2020 (inception) through June 30, 2021 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), identifying a target company for a Business Combination, and activities in connection with the proposed acquisition of Atieva, Inc., d/b/a Lucid Motors, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Lucid”) (see Note 6). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The registration statements for the Company’s Initial Public Offering were declared effective on July 29, 2020. On August 3, 2020, the Company consummated the Initial Public Offering of 207,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriters of the over-allotment option to purchase an additional 27,000,000 Units, at $10.00 per Unit, generating gross proceeds of $2,070,000,000, which is described in Note 3. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 42,850,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Churchill Sponsor IV LLC, (the “Sponsor”), generating gross proceeds of $42,850,000 which is described in Note 4. Transaction costs amounted to $109,714,885, consisting of $36,403,600 of underwriting fees, $72,450,000 of deferred underwriting fees and $861,285 of other offering costs. Following the closing of the Initial Public Offering on August 3, 2020, an amount of $2,070,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination or (ii) the distribution of the Trust Account, as described below, except that interest earned on the Trust Account can be released to the Company to fund working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its tax obligations. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company’s initial Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (excluding taxes payable on interest income earned from the Trust Account and the deferred underwriting commissions) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then on deposit in the Trust Account (initially $10.00 per Public Share, plus any pro rata interest, net of amounts withdrawn for working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its taxes (“permitted withdrawals”)). The per-share amount to be distributed to public stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 7). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company’s Sponsor and its permitted transferees will agree to vote their Founder Shares (as defined in Note 6) and any Public Shares acquired during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, public stockholders may elect to redeem their Public Shares irrespective of whether they vote for or against the Business Combination. If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company. The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and the Public Shares held by it in connection with the completion of a Business Combination, (b) to waive its rights to liquidating distributions from the Trust Account with respect to its Founder Shares if the Company fails to consummate a Business Combination within the Combination Window (as defined below) and (c) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with the opportunity to redeem their shares in conjunction with any such amendment. If the Company is unable to complete a Business Combination by August 3, 2022 (or November 3, 2022 if the Company has an executed letter of intent, agreement in principle or definitive agreement for a Business Combination by August 3, 2022) (the “Combination Window”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten The Sponsor has agreed to waive its right to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Window. However, if the Sponsor acquires Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Window and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the funds on deposit in the Trust Account remaining available for distribution will be less than the Initial Public Offering price per Unit of $10.00 in the Initial Public Offering. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement, reduce the amount of funds on deposit in the Trust Account to below (i) $10.00 per Public Share or (ii) the amount per Public Share held in the Trust Account as of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of permitted withdrawals. This liability will not apply with respect to any claims by a third party that executed a waiver of any and all rights to seek access to the Trust Account or to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Liquidity The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public Offering and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of June 30, 2021, approximately $290,785 of the amount on deposit in the Trust Account represented interest income, which is available to pay the Company's tax obligations and for permitted withdrawals. Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. The Company may need to raise additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. The Company's officers, directors and Sponsor may, but are not obligated to, loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company's working capital needs. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. The Company believes it will have sufficient cash to meet its needs for a reasonable period of time, which is considered to be one year from the issuance date of the condensed consolidated financial statements. | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Churchill Capital Corp IV (formerly known as Annetta Acquisition Corp) (the “Company”) was incorporated in Delaware on April 30, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has one subsidiary, Air Merger Sub, Inc., a direct, wholly owned subsidiary of the Company incorporated in Delaware on February 19, 2021 (“Merger Sub”) (see Note 12). As of December 31, 2020, the Company had not commenced any operations. All activity for the period from April 30, 2020 (inception) through December 31, 2020 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), identifying a target company for a Business Combination, and activities in connection with the proposed acquisition of Atieva, Inc., d/b/a Lucid Motors, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Atieva”) (see Note 12). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The registration statements for the Company’s Initial Public Offering were declared effective on July 29, 2020. On August 3, 2020, the Company consummated the Initial Public Offering of 207,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriters of the over-allotment option to purchase an additional 27,000,000 Units, at $10.00 per Unit, generating gross proceeds of $2,070,000,000, which is described in Note 4. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 42,850,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Churchill Sponsor IV LLC, (the “Sponsor”), generating gross proceeds of $42,850,000 which is described in Note 5. Transaction costs amounted to $109,714,885, consisting of $36,403,600 of underwriting fees, $72,450,000 of deferred underwriting fees and $861,285 of other offering costs. Following the closing of the Initial Public Offering on August 3, 2020, an amount of $2,070,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination or (ii) the distribution of the Trust Account, as described below, except that interest earned on the Trust Account can be released to the Company to fund working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its tax obligations. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company’s initial Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (excluding taxes payable on interest income earned from the Trust Account and the deferred underwriting commissions) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially $10.00 per Public Share, plus any pro rata interest, net of amounts withdrawn for working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its taxes (“permitted withdrawals”)). The per-share amount to be distributed to public stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 7). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company’s Sponsor and its permitted transferees will agree to vote their Founder Shares (as defined in Note 6) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company. The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and Public Shares held by it in connection with the completion of a Business Combination, (b) to waive its rights to liquidating distributions from the Trust Account with respect to its Founder Shares if the Company fails to consummate a Business Combination within the Combination Window (as defined below) and (c) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with the opportunity to redeem their shares in conjunction with any such amendment. If the Company is unable to complete a Business Combination by August 3, 2022 (or November 3, 2022 if the Company has an executed letter of intent, agreement in principle or definitive agreement for a Business Combination by August 3, 2022) (the “Combination Window”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest (net of permitted withdrawals and up to $100,000 to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Window. The Sponsor has agreed to waive its right to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Window. However, if the Sponsor acquires Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Window and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement, reduce the amount of funds in the Trust Account to below (i) $10.00 per Public Share or (ii) the amount per Public Share held in the Trust Account as of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of permitted withdrawals. This liability will not apply with respect to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account or to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Risks and Uncertainties Management continues to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Liquidity The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public Offering and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of December 31, 2020, the Company had $3,592,857 in its operating bank accounts, $2,070,086,006 in securities held in the Trust Account to be used for a Business Combination or to repurchase or redeem its common stock in connection therewith and working capital of $3,218,168 . As of December 31, 2020, approximately $86,000 of the amount on deposit in the Trust Account represented interest income, which is available to pay the Company's tax obligations. Based on the foregoing, the Company believes it will have sufficient cash to meet its needs for a reasonable period of time, which is considered to be one year from the issuance date of the financial statements. On February 22, 2021, the Company entered into a convertible promissory note with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $1,500,000 (see Note 12) . |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 8 Months Ended |
Dec. 31, 2020 | |
Churchill Capital Corp IV | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company previously accounted for its outstanding Public Warrants (as defined in Note 4) and Private Placement Warrants (collectively, with the Public Warrants, the “Warrants”) issued in connection with its Initial Public Offering as components of equity instead of as derivative liabilities. The warrant agreement governing the Warrants includes a provision that provides for potential changes to the settlement amounts dependent upon the characteristics of the holder of the warrant. In addition, the warrant agreement includes a provision that in the event of a tender offer or exchange offer made to and accepted by holders of more than 50% of the outstanding shares of a single class of stock, all holders of the Warrants would be entitled to receive cash for their Warrants (the “tender offer provision”). On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). Specifically, the SEC Statement focused on certain settlement terms and provisions related to certain tender offers following a business combination, which terms are similar to those contained in the warrant agreement. In further consideration of the SEC Statement, the Company’s management further evaluated the Warrants under Accounting Standards Codification (“ASC”) Subtopic 815-40, Contracts in Entity’s Own Equity. ASC Section 815-40-15 addresses equity versus liability treatment and classification of equity-linked financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other things, the warrant is indexed to the issuer’s common stock. Under ASC Section 815-40-15, a warrant is not indexed to the issuer’s common stock if the terms of the warrant require an adjustment to the exercise price upon a specified event and that event is not an input to the fair value of the warrant. Based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the Company’s Private Placement Warrants are not indexed to the Company’s common stock in the manner contemplated by ASC Section 815-40-15 because the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. In addition, based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the tender offer provision fails the “classified in stockholders’ equity” criteria as contemplated by ASC Section 815-40-25. As a result of the above, the Company should have classified the Warrants as derivative liabilities in its previously issued financial statements. Under this accounting treatment, the Company is required to measure the fair value of the Warrants at the end of each reporting period and recognize changes in the fair value from the prior period in the Company’s operating results for the current period. See Notes 3, 8, 9, 10 and 11. The Company’s accounting for the Warrants as components of equity instead of as derivative liabilities did not have any effect on the Company’s previously reported investments held in trust, operating expenses, or cash. The table below summarizes the effects of the restatement on the financial statements for all periods being restated: As Previously As Reported Adjustments Restated Balance sheet as of August 3, 2020 (audited) Total Liabilities $ 72,450,000 $ 83,422,000 $ 155,872,000 Class A Common Stock Subject to Possible Redemption 1,998,159,110 (83,422,000) 1,914,737,110 Class A Common Stock 718 835 1,553 Additional Paid-in Capital 4,995,112 2,166,701 7,161,813 Accumulated Deficit (1,000) (2,167,536) (2,168,536) Shareholders’ Equity 5,000,005 — 5,000,005 Number of shares subject to redemption 199,815,911 (8,342,200) 191,473,711 Balance sheet as of September 30, 2020 (unaudited) Total Liabilities $ 72,483,333 $ 135,402,500 $ 207,885,833 Class A Common Stock Subject to Possible Redemption 1,998,003,495 (135,402,500) 1,862,600,995 Class A Common Stock 721 1,354 2,075 Additional Paid-in Capital 5,150,724 54,146,682 59,297,406 Accumulated Deficit (156,614) (54,148,036) (54,304,650) Shareholders’ Equity 5,000,006 — 5,000,006 Number of shares subject to redemption 199,787,373 (13,539,371) 186,248,002 Balance sheet as of December 31, 2020 (audited) Total Liabilities $ 73,978,373 $ 142,200,500 $ 216,178,873 Class A Common Stock Subject to Possible Redemption 1,995,638,270 (142,200,500) 1,853,437,770 Class A Common Stock 744 1,422 2,166 Additional Paid-in Capital 7,515,926 60,944,614 68,460,540 Accumulated Deficit (2,521,839) (60,946,036) (63,467,875) Shareholders’ Equity 5,000,006 — 5,000,006 Number of shares subject to redemption 199,563,827 (14,220,050) 185,343,777 Statement of Operations for the three Month Ended September 30, 2020 (unaudited) Net loss $ (155,614) $ (54,148,036) $ (54,303,650) Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 199,815,911 (8,342,200) 191,473,711 Basic and diluted net income per share, Class A common stock subject to possible redemption 0.00 0.00 0.00 Basic and diluted weighted average shares outstanding, Non-redeemable common stock 53,784,534 5,259,213 59,043,747 Basic and diluted net loss per share, Non-redeemable common stock 0.00 (0.92) (0.92) Statement of Operations for the period from April 30, 2020 (inception) to September 30, 2020 (unaudited) Net loss $ (156,614) $ (54,148,036) $ (54,304,650) Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 199,815,911 (8,342,200) 191,473,711 Basic and diluted net income per share, Class A common stock subject to possible redemption 0.00 0.00 0.00 Basic and diluted weighted average shares outstanding, Non-redeemable common stock 51,169,291 3,693,493 54,862,784 Basic and diluted net loss per share, Non-redeemable common stock 0.00 (0.99) (0.99) Statement of Operations for the period from April 30, 2020 (inception) to December 31, 2020 (audited) Net loss $ (2,521,839) $ (60,946,036) $ (63,467,875) Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 199,798,408 (11,529,798) 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption 0.00 0.00 0.00 Basic and diluted weighted average shares outstanding, Non-redeemable common stock 54,384,479 7,755,470 62,139,949 Basic and diluted net loss per share, Non-redeemable common stock (0.05) (0.97) (1.02) Statement of Cash Flows for the period from April 30, 2020 (inception) to December 31, 2020 (audited) Net loss $ (2,521,839) $ (60,946,036) $ (63,467,875) Loss on warrant liabilities — 58,778,500 58,778,500 Transaction costs attributable to Initial Public Offering — 2,167,536 2,167,536 Initial classification of Class A common stock subject to possible redemption 1,998,159,110 (83,422,000) 1,914,737,110 Change in value of Class A common stock subject to possible redemption (2,520,840) (58,778,500) (61,299,340) Statement of Cash Flows for the period from April 30, 2020 (inception) to September 30, 2020 (unaudited) Net loss $ (156,614) $ (54,148,036) $ (54,304,650) Loss on warrant liabilities — 51,980,500 51,980,500 Transaction costs attributable to Initial Public Offering — 2,167,536 2,167,536 Initial classification of Class A common stock subject to possible redemption 1,998,159,110 (83,422,000) 1,914,737,110 Change in value of Class A common stock subject to possible redemption (155,615) (51,980,500) (52,136,115) |
SUMMARY OF SIGNIFICANT ACCOU_16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in the other current assets is comprised primarily of customer reservation payments for electric vehicles and other escrow deposit for building of the Arizona plant. Restricted cash included in other non-current assets is primarily related to letters of credit issued to the landlord for the Company’s headquarter in Newark, California and retail locations, and escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. Other Significant Accounting Policies As of June 30, 2021, there were no material changes in the other significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1 filed with SEC on August 2, 2021. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. The Company has restricted cash in current assets of $11.3 million and $19.8 million as of December 31, 2020 and 2019, respectively, consisting of customer reservation payments for electric vehicles of $0.5 million and $0.3 million and the escrow deposit for building of the Arizona plant of $ 10.8 million and $19.5 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company has $14.7 million and $8.2 million, respectively, held in long-term restricted cash consisting of $5.0 million and $5.0 million, respectively, for the letter of credit required by the landlord for the headquarter facility in Newark, California, $8.0 million and $1.5 million, respectively, in letter of credit required by the landlord for the retail locations, and $1.7 million and $1.7 million, respectively, in escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 Accounts Receivable Accounts receivable consist of current trade receivables from a single customer. The Company records accounts receivable at their net realizable value. Management’s estimate for expected credit losses for outstanding accounts receivable are based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and the establishment of specific reserves for customers in an adverse financial condition. Adjustments are made based upon the Company’s expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. The Company also considers current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company reassesses the adequacy of estimated credit losses each reporting period. At December 31, 2020 and 2019, the Company did not record an allowance for doubtful accounts. Short-Term Investments Investments with original or remaining maturities of more than three months at the time of purchase are generally classified as short-term investments and consist of time deposits. The Company’s short-term investments consist of certificates of deposit totaling $0.5 million as of December 31, 2020 and 2019. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization for leasehold improvements. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. The Company generally uses the following estimated useful lives for each asset category: Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements that increase functionality of the asset are capitalized and depreciated ratably over the identified useful life. Upon disposition or retirement of property and equipment, the related cost and accumulated depreciation and amortization are removed, and any gain or loss is reflected in operations. The Company recorded a disposition loss on fixed assets of $0.1 million for the year ended December 31, 2020 and an immaterial loss for the year ended December 31, 2019. Inventory Inventory, consisting of raw materials, work in progress and finished goods is stated at the lower of cost or net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on a first-in, first-out basis. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered to be held in excess of demand or obsolete based upon assumptions about future demand and market conditions. The Company also reviews the status of the inventory periodically to determine whether a lower of cost or net realizable value analysis needs to be performed based on market pricing. The Company’s inventory is associated with battery pack system projects with its customer and consists of the following (in thousands): December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 The Company did not adjust the cost basis of its inventory as of December 31, 2020 and 2019. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019. Foreign Currency The US dollar is the functional currency of the Company’s consolidated subsidiaries operating outside of the US. Monetary assets and liabilities of these subsidiaries are remeasured into US dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are remeasured at historical rates. Expenses incurred in currencies other than the US dollar (the functional currency) are remeasured at average exchange rates in effect during each period. Foreign currency gains and losses from remeasurement are included within other income (expense) — net in the Company’s consolidated statements of operations, and the Company recorded a foreign currency loss of $2.5 million for the year ended December 31, 2020 mainly due to the currency fluctuations of Euro, Japanese yen, and South Korean won, and an immaterial loss for the year ended December 31, 2019. Revenue from Contracts with Customers On January 1, 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method which did not result in an adjustment upon adoption. The Company follows a five-step process in which the Company identifies the contract, identifies the related performance obligations, determines the transaction price, allocates the contract transaction price to the identified performance obligations, and recognizes revenue when (or as) the performance obligations are transferred to the customer. The Company’s revenue consists of the sales of battery pack systems, supplies and related services for vehicles. The Company identifies the sale of battery pack systems and the related supplies as a performance obligation to be recognized at the point in time when control is transferred to the customer. Control transfers to the customer when the product is delivered to the customer as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Shipping and handling provided by Company is considered a fulfillment activity. While customers generally have the right to return defective or non-conforming products, past experience has demonstrated that product returns have been immaterial. Customer remedies may include either a cash refund or an exchange of the returned product. As a result, the right of return and related refund liability for non-conforming or defective goods is estimated and recorded as a reduction in revenue, if necessary. Payment for the products sold are made upon invoice or in accordance with payment terms customary to the business. The Company’s contracts do not contain significant financing components. Customer contracts generally do not include more than one performance obligation. If a contract were to contain more than one performance obligation, the Company shall allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. The Company does not have any remaining performance obligations or contract assets and liabilities as of December 31, 2020 and 2019. Cost of Revenue Cost of revenue includes direct parts, material and labor costs, manufacturing overhead, including amortized tooling costs, shipping and logistic costs, and reserves for estimated warranty expenses related to its battery packs. Cost of revenue also includes adjustments to warranty expense and charges to write down the carrying value of inventory when it exceeds its estimated net realizable value or to provide for obsolete and on-hand inventory in excess of forecasted demand. Warranties The Company provides a manufacturer’s warranty on all battery packs it sells and accrues a warranty reserve for such battery packs, as applicable. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. Current estimates of the warranty reserve are immaterial, but changes to the Company’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities in the consolidated balance sheets. The Company recorded warranty expense of zero and $0.1 million as a component of cost of revenue in the consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. Share-Based Compensation Share-based compensation expense related to share-based awards granted to employees is measured and recognized in the Company’s consolidated financial statements based on fair value. Share-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for each employee share option expected to vest. The fair value of each share option granted to employees and nonemployees is estimated on the grant date using the Black-Scholes option-pricing model. For nonemployee share options, the fair value is remeasured as the share options vest, and the resulting change in fair value, if any, is recognized in the consolidated statements of operations during the period the related services are rendered. Comprehensive Income (Loss) Comprehensive loss is composed of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under US GAAP are recorded as an element of shareholders’ equity (deficit) but are excluded from net loss. For the years ended December 31, 2020 and 2019, as there are no activities that impacted comprehensive income (loss), there are no differences between comprehensive loss and net loss reported in the Company’s consolidated statements of operations. Research and Development Research and development expenses consist primarily of personnel-related expenses, contractor fees, engineering design and testing expenses, and allocated facilities cost. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses have been expensed as incurred and included in the consolidated statements of operations. Selling, General, and Administrative Selling, general and administrative expense consist of personnel and facilities costs related to marketing, sales, finance, human resources, information technology, and legal departments. Advertising Advertising is expensed as incurred and is included in sales and marketing expenses in the consolidated statements of operations. These costs were immaterial for the years ended December 31, 2020 and 2019, respectively. Leases An arrangement is or contains a lease if there are specified assets and the right to control the use of a specified asset is conveyed for a period in exchange for consideration. Upon lease inception, the Company classifies leases as either operating or capital leases. Leases are classified as capital leases when the terms of the lease transfers substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating leases are not recognized on the consolidated balance sheets. For capital leases, the Company recognizes capital lease assets and corresponding lease liabilities within the consolidated balance sheets at lease commencement at the present value of the rental payments. The Company recognizes rent expense on a straight-line basis in the statements of operations for operating leases. For capital leases, the Company recognizes interest expense associated with the capital lease liability and depreciation expense associated with the capital lease asset. For capital lease assets and leasehold improvements, the estimated useful lives are limited to the shorter of the useful life of the asset or the term of the lease. The Company enters into operating and capital leases associated with its office space, manufacturing and retail facilities, and equipment. On certain of its operating lease agreements, the Company may receive rent holidays and other incentives, which are recognized over the lease term through rent expense. The difference between rent expense and the cash paid under the lease agreement is recorded as deferred rent. Lease incentives, including tenant improvement allowances, are also recorded as deferred rent and amortized on a straight-line basis over the lease term. The Company recorded deferred rent under other short-term and long-term liabilities in the consolidated balance sheets as of December 31, 2020 and 2019. If the term of the lease does not exceed 12 months, the Company elects to record the rental expense in the period it is incurred, and no deferred rent will be recorded. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount within a range of loss can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Legal costs incurred in connection with loss contingencies are expensed as incurred. Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance outlines a comprehensive model for entities to use in accounting for leases and supersedes most current lease accounting guidance, including industry-specific guidance. The core principle of the new lease accounting model is that lessees are required, among other things, to recognize lease assets and lease liabilities in the consolidated balance sheets for those leases classified as operating leases under previous authoritative guidance. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company will apply the new transition method prescribed by ASU No. 2018-11 at the adoption date. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2022. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments, and amends existing earnings-per-share, or EPS, guidance by requiring that an entity use the if-converted method when calculating diluted EPS for convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We plan to adopt ASU 2020-06 effective January 1, 2022 and are currently evaluating the effect ASU 2020-06 will have on our consolidated financial statements and related disclosures. | |
Churchill Capital Corp IV | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the SEC on May 14, 2021. The interim results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement under the Securities Act declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2021 and December 31, 2020. Marketable Securities Held in Trust Account At June 30, 2021 and December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. From inception to June 30, 2021, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes, of which no amounts were withdrawn during the three and six months ended June 30, 2021. Convertible Debt The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. The Company reviews the terms of convertible debt issued to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense. Derivative Liabilities The Company accounts for debt and equity issuances as either equity-classified or liability-classified instruments based on an assessment of the instruments specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the instruments are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common stock and whether the holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of issuance of the instruments and as of each subsequent quarterly period end date while the instruments are outstanding. For issued or modified instruments that meet all of the criteria for equity classification, the instruments are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified instruments that do not meet all the criteria for equity classification, the instruments are required to be recorded as a derivative liability at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the instruments are recognized as a non-cash gain or loss on the condensed consolidated statements of operations. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the issuer’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in capital and accumulated deficit. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. As of June 30, 2021 and December 31, 2020, the Company had a deferred tax asset of approximately $1,342,000 and $594,000 ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statements recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three and six months ended June 30, 2021, the Company recorded $1,962 of income tax expense. The Company’s effective tax rate for the three and six months ended June 30, 2021 was approximately 0%, which differs from the expected income tax rate primarily due to the permanent differences associated with the change in the fair value of the derivative liabilities and start-up costs (discussed above) which are not currently deductible. Net income (Loss) per Share Net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering and private placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the inclusion of such warrants would be anti-dilutive. The Company’s statements of operations include a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable common stock is calculated by dividing the net income (loss), adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable common stock outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): For the Period From April 30, 2020 Three Months Six Months (inception) Ended Ended through June 30, June 30, June 30, 2021 2021 2020 Class A common stock subject to possible redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 27,453 $ 204,779 $ — Unrealized gain on investments held in Trust Account (3,956) — — Less: Company’s portion available to be withdrawn to pay taxes (23,497) (129,310) — Less: Company’s portion available to be withdrawn for working capital purposes — (75,469) — Net income allocable to Class A common stock subject to possible redemption $ — $ — $ — Denominator: Weighted Average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 207,000,000 201,682,674 — Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 $ 0.00 $ 0.00 Non-Redeemable Common Stock Numerator: Net Loss minus Net Earnings Net loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Less: Income allocable to Class A common stock subject to possible redemption — — — Non-Redeemable Net Loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Denominator: Weighted Average Non-redeemable Common stock Basic and diluted weighted average shares outstanding, Non-redeemable Common stock 51,750,000 58,496,884 45,000,000 Basic and diluted net loss per share, Non-redeemable Common stock $ (11.38) $ (24.97) $ (0.00) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times may exceed the Federal Depository Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature, except for the Company’s derivative instruments (see Note 9). Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements. | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of mutual funds. The Company did not have any cash equivalents as of December 31, 2020. Marketable Securities Held in Trust Account At December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. Through December 31, 2020, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes. Warrant Liability The Company accounts for the Warrants in accordance with the guidance contained in ASC 815-40-15-7D and 7F under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. The Public Warrants and Private Placement Warrants for periods where no observable traded price was available are valued using a Monte Carlo simulation and a modified Black Scholes model, respectively. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security “CARES” Act into law. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (“NOL) and allow businesses to carry back NOLs arising in 2018, 2019 and 2020 to the five prior years, suspend the excess business loss rules, accelerate refunds of previously generated corporate alternative minimum tax credits, generally loosen the business interest limitation under IRC section 163(j) from 30 percent to 50 percent among other technical corrections included in the Tax Cuts and Jobs Act tax provisions. The Company does not believe that the CARES Act will have a significant impact on Company’s financial position or statement of operations. Net Income (Loss) per Common Share Net income (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company has not considered the effect of the warrants sold in the Public Offering and Private Placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events and the inclusion of such warrants would be anti-dilutive. The Company’s statement of operations includes a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per ordinary share. Net income (loss) per common share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account by the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable ordinary shares is calculated by dividing the net loss, adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable ordinary shares outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on the non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): For the Period from April 30, 2020 (inception) through December 31, 2020 Class A Common Stock Subject to Possible Redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 475,781 Unrealized gain on investments held in Trust Account 4,159 Less: Company’s portion available to be withdrawn to pay taxes (193,315) Less: Company’s portion available to be withdrawn for working capital purposes (286,625) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 Non-Redeemable Common Stock Numerator: Net loss minus net earnings Net loss $ (63,467,875) Less: Net income allocable to Class A common stock subject to possible redemption — Non-redeemable net loss $ (63,467,875) Denominator: Weighted average non-redeemable Class B common stock Basic and diluted weighted average shares outstanding, Non-redeemable Class B common stock 62,139,949 Basic and diluted net loss per share, Non-redeemable Class B common stock $ (1.02) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage limit of $250,000. The Company has not experienced losses on this account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. Recent Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
INITIAL PUBLIC OFFERING | NOTE 3. PUBLIC OFFERING Pursuant to the Initial Public Offering, the Company sold 207,000,000 Units, which includes the full exercise by the underwriters of their option to purchase an additional 27,000,000 Units, at $10.00 per Unit. Each Unit consists of one share of Class A common stock and one-fifth of one | NOTE 4. INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering, the Company sold 207,000,000 Units, which includes the full exercise by the underwriters of their option to purchase an additional 27,000,000 Units, at $10.00 per Unit. Each Unit consists of one share of Class A common stock and one-fifth |
PRIVATE PLACEMENT
PRIVATE PLACEMENT | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
PRIVATE PLACEMENT | NOTE 4. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 42,850,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $42,850,000. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Window, the proceeds of the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions from the Trust Account with respect to the Private Placement Warrants. | NOTE 5. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 42,850,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $42,850,000. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Window, the proceeds of the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions from the Trust Account with respect to the Private Placement Warrants. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
RELATED PARTY TRANSACTIONS | NOTE 5. RELATED PARTY TRANSACTIONS Founder Shares On May 22, 2020, the Sponsor purchased 21,562,500 shares of the Company’s Class B common stock for an aggregate price of $25,000 (the “Founder Shares” or, individually, a “Founder Share”). On July 14, 2020, the Company effected a stock dividend of one-third outstanding issued The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or similar transaction after a Business Combination that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Notwithstanding the foregoing, if the closing price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, the Founder Shares will be released from the lock-up. Administrative Support Agreement The Company entered into an agreement whereby, commencing on July 30, 2020 through the earlier of the Company’s consummation of a Business Combination and its liquidation, the Company will pay an affiliate of the Sponsor a total of $50,000 per month for office space, administrative and support services. For the three and six months ended June 30, 2021, the Company incurred and paid $150,000 and $ 300,0000 On May 28, 2021, the Company and the Sponsor amended the agreement relating to administrative and support services to provide that the Company will not be required to pay the $50,000 per month fee under the agreement from and after July 1, 2021. Advisory Fee The Company may engage M. Klein and Company, LLC, an affiliate of the Sponsor, or another affiliate of the Sponsor, as its lead financial advisor in connection with a Business Combination and may pay such affiliate a customary financial advisory fee in an amount that constitutes a market standard financial advisory fee for comparable transactions. Promissory Note — Related Party On May 13, 2020, the Sponsor agreed to loan the Company an aggregate of up to $600,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Promissory Note”). The Promissory Note was non-interest bearing and payable on the earlier of December 31, 2021 or the completion of the Initial Public Offering. The borrowings outstanding under the note in the amount of $550,000 were repaid upon the consummation of the Initial Public Offering on August 3, 2020. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of the Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. On February 22, 2021, the Company entered into a convertible promissory note with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $1,500,000 (the “Convertible Promissory Note”). The Convertible Promissory Note is non-interest bearing and payable on the earlier of the date on which the Company consummates a Business Combination or the date that the winding up of the Company is effective. If the Company does not consummate a Business Combination, the Company may use a portion of any funds held outside the Trust Account to repay the Promissory Note; however, no proceeds from the Trust Account may be used for such repayment. Up to $1,500,000 of the Convertible Promissory Note may be converted into warrants at a price of $1.00 per warrant at the option of the Sponsor. The warrants would be identical to the Private Placement Warrants. As of June 30, 2021, the outstanding balance under the Convertible Promissory Note amounted to an aggregate of $1,500,000. The Company assessed the provisions of the Convertible Promissory Note under ASC 470-20. The derivative component of the obligation is initially valued and classified as a derivative liability. The excess of the fair value of the derivative liability over the principal in the amount of $56,191,636 was recorded as interest expense in the accompanying condensed statements of operations. The conversion option was valued using the Black-Scholes option pricing formula, which is considered to be a Level 3 fair value measurement and based on the following assumptions (see Note 9): February 22, 2021 June 30, March 31, (Initial 2021 2021 Measurement) Underlying warrant value $ 21.26 $ 12.45 $ 39.46 Exercise price $ 1.00 $ 1.00 $ 1.00 Holding period 0.06 0.23 0.34 Risk-free rate 0.04 % 0.03 % 0.03 % Volatility 125 % 125 % 125 % Dividend yield 0.0 % 0.0 % 0.0 % The following table presents the change in the fair value of conversion option liability: Fair value as of January 1, 2021 $ — Initial measurement on February 22, 2021 57,691,636 Change in fair value (40,517,598) Fair value as of March 31, 2021 17,174,038 Change in fair value 13,220,756 Fair value as of June 30, 2021 $ 30,394,794 The debt discount is being amortized to interest expense as a non-cash charge over the term of the Convertible Promissory Note, which is assumed to be July 2021, the Company's expected Business Combination date. During the three and six months ended June 30, 2021, the Company recorded $900,000 and $1,200,000 of interest expense related to the amortization of the debt discount, respectively. The remaining balance of the debt discount at June 30, 2021 amounted to $300,000. | NOTE 6. RELATED PARTY TRANSACTIONS Founder Shares On May 22, 2020, the Sponsor purchased 21,562,500 shares of the Company’s Class B common stock for an aggregate price of $25,000 (the “Founder Shares”). On July 14, 2020, the Company effected a stock dividend of one-third of a share of Class B common stock for each outstanding share of Class B common stock, on July 27, 2020, the Company effected a stock dividend of 0.50 to 1 share of Class B common stock for each outstanding share of Class B common stock and on July 30, 2020, the Company effected a stock dividend of 0.20 to 1 share of Class B common stock for each outstanding share of Class B common stock, resulting in 51,750,000 shares of Class B common stock being issued and outstanding. All share and per-share amounts have been retroactively restated to reflect the stock dividends. The Founder Shares included an aggregate of up to 6,750,000 shares subject to forfeiture to the extent that the underwriters’ over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted basis, 20% of the Company’s issued and outstanding shares after the Initial Public Offering. As a result of the underwriters’ election to fully exercise their over-allotment option, 6,750,000 Founder Shares are no longer subject to forfeiture. The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or similar transaction after a Business Combination that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Notwithstanding the foregoing, if the closing price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, the Founder Shares will be released from the lock-up. Administrative Support Agreement The Company entered into an agreement whereby, commencing on July 30, 2020 through the earlier of the Company’s consummation of a Business Combination and its liquidation, the Company will pay an affiliate of the Sponsor a total of $50,000 per month for office space, administrative and support services. For the period from April 30, 2020 (inception) through December 31, 2020, the Company incurred and paid $250,000 in fees for these services. Advisory Fee The Company may engage M. Klein and Company, LLC, an affiliate of the Sponsor, or another affiliate of the Sponsor, as its lead financial advisor in connection with a Business Combination and may pay such affiliate a customary financial advisory fee in an amount that constitutes a market standard financial advisory fee for comparable transactions. Promissory Note — Related Party On May 13, 2020, the Sponsor agreed to loan the Company an aggregate of up to $600,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Promissory Note”). The Promissory Note was non-interest bearing and payable on the earlier of December 31, 2021 or the completion of the Initial Public Offering. The borrowings outstanding under the note in the amount of $550,000 were repaid upon the consummation of the Initial Public Offering on August 3, 2020. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. |
COMMITMENTS
COMMITMENTS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
COMMITMENTS | NOTE 10 — COMMITMENTS AND CONTINGENCIES Contractual Obligations As of June 30, 2021, and December 31, 2020, the Company had $79.2 million and $406.1 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of June 30, 2021, and December 31, 2020. The Company entered into non-cancellable purchase commitment to purchase battery cells over the next 3 years with various vendors. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of June 30, 2021 is set as follows (in thousands): Minimum Purchase Years ended December 31, Commitment 2021 (remainder of the year) $ 104,370 2022 202,400 2023 202,400 Total $ 509,170 In recognition of the CEO’s efforts on the contemplated merger, the board of directors approved a $2 million transaction bonus payable to the CEO, subject to: (1) the Closing of the merger, (ii) the CEO’s continued employment through the closing date and (iii) the CEO’s not giving notice of his intent to resign on or before the closing date. The transaction bonus was paid to the CEO on the first regularly scheduled payroll date after the Closing. Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. There is no material pending or threatened Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to letters of credit and surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $24.6 million and $15.5 million as of June 30, 2021 and December 31, 2020, respectively, for which no liabilities are recorded on the consolidated balance sheets. | NOTE 10 — COMMITMENTS AND CONTINGENCIES Operating Leases and Other Contractual Obligations The Company has various non-cancelable operating leases for its office space, laboratory, and manufacturing and retail facilities. These leases expire at various times through 2030. Certain lease agreements contain renewal options, rent abatement, and escalation clauses. The Company recognizes rent expense on a straight-line basis over the lease term, commencing when the Company takes possession of the property. Certain of the Company’s office leases entitle the Company to receive a tenant allowance from the landlord. The Company records tenant allowance as a deferred rent credit, which the Company amortizes on a straight-line basis, as a reduction of rent expense, over the term of the underlying lease. In 2020 and in 2019, the Company invoked the right for additional tenant improvements of $4.7 million and $8.6 million, respectively, allowed in the original contracts or amended agreements for the corporate headquarters in Newark, California. As of December 31, 2020, and 2019, the Company had $406.1 million and $162.0 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of December 31, 2020, and 2019. In September 2017, the Company entered into an over 10-year lease on an approximately 127,000 square-foot headquarters building, and the lease will expire on September 30, 2030 after the amendment being signed. The Company has committed to pay approximately $0.3 million per month for the building, with 3% annual increases. In September 2018, the Company amended that lease to also include an approximately 300,000 square-foot additional building within the same campus location and extend the term to 12 years, and the lease will expire on September 30, 2030. Under the lease agreement, the Company has committed to pay approximately $0.6 million per month for the additional building, with 3% annual increases on the lease. As of December 31, 2020, and 2019, the landlord provided a tenant improvement allowance for approximately $29.0 million and $24.3 million, respectively, for leasehold improvements in connection with the cost of construction of the initial alterations within the premises. In December 2018, the Company entered into a four-year lease for approximately 500 acres of land in Arizona, on which the Company intends to construct an Arizona plant. Under the lease agreement, the Company is committed to pay $1.8 million per year during the lease term. This rent is paid in arrears. Pursuant to the terms of the lease agreement , the Company has the exclusive option to purchase the Premises (land together with any structures or improvements presently situated thereon or to be constructed thereon) at any time prior to expiration of the lease term for the purchase price to be computed in accordance with the terms and conditions as set forth in the lease agreement. In June 2019, the Company entered into a new lease agreement for a retail location in Beverly Hills, California. The lease commenced on September 1, 2019 and will expire on August 31, 2029. Under the lease agreement, the Company will pay base rent of $0.1 million per month. Base rent is subject to a 3% annual escalation clause during the lease term. From January 2020 to September 2020, the Company entered into nine lease agreements for retail locations in Arizona, California, Florida, New York, and Virginia, with lease expiration dates ranging from March 2025 through December 2032. Base rent for these leases ranges from $0.1 million to $0.4 million per annum, with certain leases having 3% annual base rent escalation clauses during the lease terms. Future minimum payments as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 25,490 2022 28,837 2023 27,633 2024 28,207 2025 27,474 Thereafter 116,155 Total $ 253,796 Rent expense incurred under operating leases was approximately $19.6 million and $18.3 million, for the years ended December 31, 2020 and 2019, respectively. During the year ended 2020, the Company entered into a non-cancellable purchase commitment with a large battery cell supplier to purchase battery cells over the next three years. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of December 31, 2020 is set as follows (in thousands): Minimum Purchase Commitment Year Ending December 31: 2021 $ 101,200 2022 202,400 2023 202,400 Total $ 506,000 Capital Lease During the years ended December 31, 2019 and 2020, the Company acquired equipment under capital lease agreements with an initial term of 36 months. Future minimum payments for the capital lease as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 1,729 2022 1,547 2023 1,174 2024 9 Total capital lease obligations 4,459 Less amounts representing interest (1,202) Capital lease obligations, net of interest $ 3,257 Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of its breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $5.0 | |
Churchill Capital Corp IV | |||
COMMITMENTS | NOTE 6. COMMITMENTS AND CONTINGENCIES Lucid Merger Agreement On February 22, 2021, we entered into a Merger Agreement with Merger Sub and Lucid (the “Merger Agreement”), relating to a proposed business combination transaction between us and Lucid. Pursuant to the Merger Agreement, Merger Sub will merge with and into Lucid with Lucid being the surviving entity in the merger. The aggregate consideration to be paid to the shareholders of Lucid will be equal to (a) $11,750,000,000 plus (b) (i) all cash and cash equivalents of Lucid and its subsidiaries less (ii) all indebtedness for borrowed money of Lucid and its subsidiaries, in each case as of two business days prior to the closing date. The consideration to the shareholders of Lucid will be paid entirely in shares of Class A common stock, par value $0.0001 per share, of the Company in an amount equal to $10.00 per share. In connection with the execution of the Merger Agreement and in order to raise additional proceeds to fund the transactions contemplated therein, the Company entered into the PIPE Subscription Agreements with certain investment funds (“PIPE Investors”). Pursuant to the terms of the PIPE Subscription Agreements, the Company has agreed to issue and sell to the PIPE Investors and the PIPE Investors have agreed to buy 166,666,667 shares of Churchill's Class A common stock at a purchase price of $15.00 per share for an aggregate commitment of $2,500,000,005 (the “PIPE Investment”). The closing of the PIPE Investment is conditioned on all conditions set forth in the Merger Agreement having been satisfied or waived and other customary closing conditions, and the Transactions will be consummated immediately following the closing of the PIPE Investment. The PIPE Subscription Agreements will terminate upon the earlier to occur of (i) the termination of the Merger Agreement and (ii) the mutual written agreement of the parties thereto. On February 22, 2021, the Company entered into a Voting and Support Agreement with certain of the PIPE Investors owning 204,148,825 shares of Lucid Series D preferred stock and 113,877,589 shares of Lucid Series E preferred stock as of the date of such agreement. Pursuant to the Voting and Support Agreement, such PIPE Investors agreed to vote all of such shares in favor of the adoption and approval of the Merger Agreement and related matters, agreements and transactions as specified in the Voting and Support Agreement, and in opposition to any Acquisition Transaction (as defined in the Merger Agreement) and any and all other proposals that could reasonably be expected to delay, impair, prevent, interfere with, postpone or impede the consummation of the transactions contemplated by the Merger Agreement as specified in the Voting and Support Agreement. The Voting and Support Agreement will automatically terminate upon the earliest of (i) the effective time, (ii) the date of termination of the Merger Agreement in accordance with its terms prior to the effective time of the transactions, (iii) the mutual written consent of the Company and the applicable PIPE Investors and (iv) the time of any modification, amendment or waiver of the Merger Agreement or any other transaction agreement without certain PIPE Investors' consent. On February 20, 2021, the Company entered into a transactional support agreement with a service provider, pursuant to which the service provider agreed to render certain financial advisory and capital markets advisory services for a potential Business Combination. The Company agreed to pay the service provider a fee of (i) $6,000,000, which is payable upon the consummation of a Business Combination, (ii) $500,000, which is payable upon consummation of the financing and (iii) out-of-pocket expenses not to exceed $125,000 without prior approval. The fee will not be payable in the event the Company does not consummate a Business Combination. Registration Rights Pursuant to a registration rights agreement entered into on July 29, 2020, the holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants or warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters are entitled to a deferred fee of $0.35 per Unit, or $72,450,000 in the aggregate. The deferred fee will be waived by the underwriters in the event that the Company does not complete a Business Combination, subject to the terms of the underwriting agreement. The underwriters waived the upfront underwriting discount on 19,982,000 Units, resulting in a reduction of the upfront underwriting discount of $3,996,400. In addition, the underwriters reimbursed the Company an aggregate of $1,000,000 for costs incurred in connection with the Initial Public Offering. Legal Fees As of June 30, 2021, the Company incurred legal fees of $6,487,154. These fees were paid on July 23, 2021 at consummation of Business Combination. Due Diligence Fees As of June 30, 2021, the company incurred due diligence fees of $1,499,780. These fees were paid on July 23, 2021 at consummation of Business Combination. | NOTE 7. COMMITMENTS AND CONTINGENCIES Registration Rights Pursuant to a registration rights agreement entered into on July 29, 2020, the holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants or warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters are entitled to a deferred fee of $0.35 per Unit, or $72,450,000 in the aggregate. The deferred fee will be waived by the underwriters in the event that the Company does not complete a Business Combination, subject to the terms of the underwriting agreement. The underwriters waived the upfront underwriting discount on 19,982,000 Units, resulting in a reduction of the upfront underwriting discount of $3,996,400. In addition, the underwriters reimbursed the Company an aggregate of $1,000,000 for costs incurred in connection with the Initial Public Offering. Legal Fees As of December 31, 2020, the Company incurred legal fees of $2,152,960. These fees will only become due and payable upon the consummation of an initial Business Combination (see Note 12). |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
STOCKHOLDERS' EQUITY | NOTE 7. STOCKHOLDERS’ EQUITY Preferred Stock — Class A Common Stock issued issued The Company determined the common stock subject to redemption to be equal to the redemption value of approximately $10.00 per share of common stock while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Upon considering the impact of the PIPE Investment and associated PIPE Subscription Agreements, it was concluded that the redemption value should include all the Public Shares resulting in the common stock subject to possible redemption being equal to $2,070,000,000. This resulted in a measurement adjustment to the initial carrying value of the common stock subject to redemption with the offset recorded to additional paid-in capital and accumulated deficit. Class B Common Stock Holders of Class B common stock will have the right to elect all of the Company’s directors prior to a Business Combination. Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law. The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination in consideration for such seller’s interest in the Business Combination target, any private placement-equivalent warrants issued, or to be issued, to any seller in a Business Combination. | NOTE 8. STOCKHOLDERS’ EQUITY Preferred Stock issued Class A Common Stock issued Class B Common Stock issued Holders of Class B common stock will have the right to elect all of the Company’s directors prior to a Business Combination. Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law. The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination in consideration for such seller’s interest in the Business Combination target, any private placement-equivalent warrants issued, or to be issued, to any seller in a Business Combination. |
WARRANT LIABILITY
WARRANT LIABILITY | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
WARRANT LIABILITY | NOTE 8. WARRANT LIABILITY The Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its best efforts to file with the SEC, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its reasonable best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available. Once the Public Warrants become exercisable, the Company may redeem the Public Warrants: · in whole and not in part; · at a price of $0.01 per Public Warrant; · upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each Public Warrant holder; and · if, and only if, the closing price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the Public Warrant holders. If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Public Warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Window and the Company liquidates the funds held in the Trust Account, holders of the Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such Public Warrants. Accordingly, the warrants may expire worthless. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. | NOTE 9. WARRANT LIABILITY Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its best efforts to file with the SEC, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its reasonable best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available. Once the warrants become exercisable, the Company may redeem the Public Warrants: ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon a minimum of 30 days ’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and ● if, and only if, the closing price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders. If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Window and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. |
INCOME TAX
INCOME TAX | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
INCOME TAX | NOTE 11 — INCOME TAXES The Company’s provision from income taxes for interim periods is determined using an estimate of its annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company does business, and tax law developments. The Company’s estimated effective tax rate for the year differs from the U.S. statutory rate of 21% because the entity is in a year-to-date and forecasted loss position; therefore, any taxes reported are due to foreign income taxes and state minimum taxes. The Company recorded an income tax provision (benefit) of $0.0 million for the three and six months ended June 30, 2021 , as compared to $(0.0) million and $(0.1) million for the same periods in the prior year. This resulted in an effective tax rate of (0.0)% for the three and six months ended June 30, 2021, and the same periods prior year. The change is primarily due to foreign income taxes, state income taxes, and a decrease in pre-tax income. As of June 30, 2021, and December 31, 2020, the Company had unrecognized tax benefits of $65.4 million and $42.9 million, of which $2.6 million, if recognized for both periods, would favorably impact the Company’s effective tax rate. The Company does not anticipate a material change in its unrecognized tax benefits in the next 12 months. On June 29, 2020, the California governor signed into law the 2020 Budget Act, which temporarily suspends the utilization of net operating losses and limits the utilization of the research | NOTE 11 — INCOME TAXES Income taxes have been provided in accordance with ASC 740. The components of loss before income taxes for the years ended December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Loss subject to domestic income taxes $ (719,636) $ (277,244) Loss subject to foreign income taxes 68 (90) $ (719,568) $ (277,334) The Company recorded an income tax provision/(benefit) of $(0.19) million and $0.03 million in connection with its domestic state and foreign subsidiaries for the years ended December 31, 2020 and 2019, respectively, as follows (in thousands): 2020 2019 Current Federal $ — $ — State 5 2 Foreign (193) 23 Total current tax expense (benefit) $ (188) $ 25 Deferred Federal $ — $ — State — — Foreign — — Total deferred tax expense (benefit) $ — $ — Total income tax expense (benefit) $ (188) $ 25 The amount of income tax expense (benefit) differs from the expected benefit due to the state income taxes, foreign income taxes, and the impact of the valuation allowance. On December 22, 2017, the US government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the US tax code, including, but not limited to, (1) reducing the US federal corporate tax rate from 35% to 21%; (2) eliminating the corporate alternative minimum tax (AMT) and changing how existing AMT credits can be realized; (3) creating a new limitation on deductible interest expense; (4) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017; (5) bonus depreciation that will allow for full expensing of qualified property; (6) establishes new rules with respect to the taxation of certain international transactions, including the income of foreign subsidiaries; and (7) limitations on the deductibility of certain executive compensation. The Tax Act subjects a US shareholder to current tax on global intangible low-taxed income (GILTI) earned by certain foreign subsidiaries. The FASB Staff Q&A Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. The Company has elected to recognize the tax on GILTI as a period expense in the period the tax is incurred. The Company’s foreign income is in a net loss position and is immaterial to the provision for income taxes, thus no GILTI has been accrued for either 2019 or 2020. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred taxes as of December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 265,799 $ 139,899 Tax credit carryforwards 40,454 18,076 Share-based compensation expense 2,554 4,191 Depreciation 499 210 Accrued compensation and vacation 2,498 699 Interest 489 409 Tenant improvement allowance 8,777 7,757 Accruals and reserves 39,502 3,577 Other 1 — Total deferred tax assets 360,573 174,818 Valuation allowance (360,573) (174,818) Net deferred tax assets — — Net deferred tax assets (liabilities) $ — $ — As of December 31, 2020, and 2019, the Company has no undistributed earnings from its foreign subsidiaries. Accordingly, no deferred tax liability has been established. A valuation allowance is recognized if, based on the weight of available evidence, it is more likely than not that some portion or all of the deferred tax asset will not be realized in a particular tax jurisdiction. All available evidence, both positive and negative, is considered to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a deferred tax asset. Judgment must be used in considering the relative impact of negative and positive evidence. Based on the weight of the available evidence, which includes the Company’s historical operating losses, lack of taxable income, and the accumulated deficit, as of December 31, 2020 and 2019, the Company provided a full valuation allowance against its US and state deferred tax assets. The valuation allowance for deferred tax assets was $360.6 million and $174.8 million, as of December 31, 2020 and 2019, respectively. The valuation allowance on our net deferred taxes increased by $185.8 million and increased by $80.7 million during the years ended December 31, 2020 and 2019, respectively. The Company had federal and state net operating loss carryforwards of approximately $960.7 million and $716.1 million, respectively, as of December 31, 2020, which will begin to expire at various dates beginning in 2028, if not utilized. The Company also had federal and state tax research and development tax credit carryforwards of approximately $44.8 million and $36.1 million, respectively. The federal research and development tax credit carryforwards will expire at various dates beginning in 2034, if not utilized. The state research and development tax credit carryforwards do not expire. The reconciliation of taxes at the federal statutory rate to our provision for income taxes for the years ended December 31, 2020 and 2019 was as follows: Year Ended December 31, 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % Share-based compensation (0.2) (0.2) Mark-to-market adjustment (3.4) (1.1) Nondeductible expenses (0.1) (0.8) Tax credits 2.8 1.9 Change in valuation allowance (20.1) (20.8) Provision for income taxes — % — % The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses and certain credits in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use net operating losses and certain credits may be limited as prescribed under Internal Revenue Code Section 382, which provide for limitations on net operating losses carryforwards and certain built in losses following ownership changes, and Section 383, which provides for special limitations on certain excess credits, etc. (collectively, “IRC Section 382”). Utilization of the carryforwards may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions, resulting in a reduction in the gross deferral tax assets before considering the valuation allowance. The Company files US, state, and foreign income tax returns with varying statutes of limitations. The federal, state, and foreign returns statute of limitations remains open for tax years from 2008 and thereafter. There are currently no income tax audits underway by US, state, or foreign tax authorities. Uncertain Tax Positions As of December 31, 2020, and 2019, the total amount of unrecognized tax benefits was approximately $42.9 million and $20.6 million, respectively. The Company does not anticipate a significant change in the total amount of unrecognized tax benefits within the next 12 months. The following table summarizes the activity related to unrecognized tax benefits for the years ended December 31, 2020 and 2019 (in thousands): December 31, 2020 2019 Unrecognized benefit – beginning of period $ 20,635 $ 11,647 Gross increases – prior-period tax positions 21 4 Gross decreases – prior-period tax positions (2) — Gross increases – current-period tax positions 22,382 8,995 Gross decrease – current-period tax positions — (11) Statute lapse (142) — Unrecognized benefit – end of period $ 42,894 $ 20,635 Related to the unrecognized tax benefits above, the Company recognized interest expense and penalty expense as part of income tax expenses in the consolidated statements of operations according to the following table (in thousands): Year Ended December 31, 2020 2019 Interest expense $ (45) $ 16 Penalty expense (20) 1 As of December 31, 2020, the Company has recognized a liability for interest expense and penalties of $60 thousand and $9 thousand, respectively, which is included within income tax liabilities in the consolidated balance sheet. | |
Churchill Capital Corp IV | |||
INCOME TAX | NOTE 10. INCOME TAX The Company’s net deferred tax asset is as follows: December 31, 2020 Deferred tax asset Startup/organizational expenses $ 596,809 Unrealized gain on marketable securities (2,900) Total deferred tax asset 593,909 Valuation Allowance (593,909) Deferred tax asset, net of allowance $ — The income tax provision consists of the following: As of December 31, 2020 Federal Current $ 81,422 Deferred (593,909) State and Local Current — Deferred — Change in valuation allowance 593,909 Income tax provision $ 81,422 As of December 31, 2020, the Company did not have any U.S. federal and state net operating loss carryovers available to offset future taxable income. In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of the deferred tax assets and has therefore established a full valuation allowance. For the period from April 30, 2020 (inception) through December 31, 2020, the change in the valuation allowance was $593,909. A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows: December 31, 2020 Statutory federal income tax rate 21.0 % State taxes, net of federal tax benefit 0.0 % Loss on warrant liability (19.5) % Transaction costs incurred in connection with IPO (0.7) % Valuation allowance (0.9) % Income tax provision (0.1) % The Company files income tax returns in the U.S. federal jurisdiction and is subject to examination by the various taxing authorities. The Company’s tax returns for the year ended December 31, 2020 remain open and subject to examination. The Company considers New York |
FAIR VALUE MEASUREMENTS_2
FAIR VALUE MEASUREMENTS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | NOTE 4 — FAIR VALUE MEASUREMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 5 “Contingent Forward Contracts” and Note 6 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ — $ 30,844 Issuance 2,167,332 — Change in fair value 454,546 8,719 Settlement (2,621,878) (39,563) Fair value-end of period $ — $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ 2,960 $ 1,755 Change in fair value 6,976 114 Settlement (9,936) — Fair value-end of period $ — $ 1,869 | NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability and contingent forward contract liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 6 “Contingent Forward Contracts” and Note 7 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 15,791 Change in fair value 15,053 Fair value-December 31, 2019 30,844 Change in fair value of Series D contingent forward contract 8,720 Settlement of Series D contingent forward contract (39,563) Issuance of Series E contingent forward contract 793 Change in fair value of Series E contingent forward contract 109,662 Settlement of Series E contingent forward contract (110,456) Fair value-December 31, 2020 $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 1,349 Change in fair value 406 Fair value-December 31, 2019 1,755 Change in fair value 1,205 Fair value-December 31, 2020 $ 2,960 | |
Churchill Capital Corp IV | |||
FAIR VALUE MEASUREMENTS | NOTE 9. FAIR VALUE MEASUREMENTS The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: June 30, December 31, Description Level 2021 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,290,785 $ 2,070,086,006 Liabilities: Warrant liability – Public Warrants 1 658,260,000 62,928,000 Warrant liability – Private Placement Warrants 3 910,991,000 79,272,500 Conversion option liability 3 30,394,794 — The derivative instruments were accounted for as liabilities in accordance with ASC 815-40 and are measured at fair value at inception and on a recurring basis, with changes in fair value recorded in the condensed consolidated statements of operations. The Private Placement Warrants were valued using a modified Black Scholes model, which is considered to be a Level 3 fair value measurement. Subsequent to the Public Warrants detachment from the Units, the Public Warrants are valued based on quoted market price, under ticker CCIV.WS, which is a Level 1 fair value. As of June 30, 2021, March 31, 2021 and December 31, 2020, the estimated fair value of the Private Placement Warrants was determined using a Black-Scholes valuation and based on the following significant inputs: June 30, March 31, December 31, 2021 2021 2020 Exercise price $ 11.50 $ 11.50 $ 11.50 Stock price $ 28.82 $ 23.18 $ 10.01 Volatility 76.52 % 40 % 30 % Probability of completing a Business Combination 95 % 90 % 80 % Term 5.06 5.23 5.33 Risk-free rate 0.88 % 0.97 % 0.50 % Dividend yield 0.0 % 0.0 % 0.0 % The following table presents the changes in the fair value of the Level 3 warrant liabilities: Private Placement Warrants January 1, 2021 $ 79,272,500 Change in fair value 454,210,000 Fair value as of March 31, 2021 533,482,500 Change in fair value 377,508,500 Fair value as of June 30, 2021 910,991,000 There were no transfers in or out of Level 3 from other levels in the fair value hierarchy. | NOTE 11. FAIR VALUE MEASUREMENTS The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level December 31, 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,086,006 Liabilities: Warrant Liability – Public Warrants 1 $ 62,928,000 Warrant Liability – Private Placement Warrants 3 $ 79,272,500 The Warrants were accounted for as liabilities in accordance with ASC 815-40 and are measured at fair value at inception and on a recurring basis, with changes in fair value recorded in the statement of operations. At issuance, the Warrant Liability for Public Warrants and Private Placement Warrants were valued as of July 30, 2020 using a Monte Carlo simulation and a modified Black Scholes model, respectively, which are considered to be a Level 3 fair value measurements. Subsequent to the Public Warrants detachment from the Units, the Public Warrants are valued based on quoted market price, under ticker CCIV.WS, which is a Level 1 fair value. The Monte Carlo simulation’s primary unobservable input utilized in determining the fair value of the Warrants is the probability of consummation of the Business Combination. The probability assigned to the consummation of the Business Combination was 80% which was estimated based on the observed success rates of business combinations for special purpose acquisition companies. The expected volatility as of the Initial Public Offering date was derived from observable public warrant pricing on comparable ‘blank-check’ companies without an identified target. As of issuance and December 31, 2020, the estimated fair value of Warrant Liability — Private Placement Warrants were determined using a Black-Scholes valuation and based on the following significant inputs: At As of December 31, issuance 2020 Exercise price $ 11.50 $ 11.50 Stock price $ 9.80 $ 10.01 Volatility 19.8 % 30 % Probability of completing a Business Combination 80.0 % 80 % Term 5.33 5.33 Risk-free rate 0.34 % 0.50 % Dividend yield 0.0 % 0.0 % The following table presents the changes in the fair value of warrant liabilities: Private Placement Public Warrant Liabilities Fair value as of April 30, 2020 (inception) $ — $ — $ — Initial measurement on July 30, 2020 42,850,000 40,572,000 83,422,000 Change in valuation inputs or other assumptions 36,422,500 22,356,000 58,778,500 Fair value as of December 31, 2020 $ 79,272,500 $ 62,928,000 $ 142,200,500 |
SUBSEQUENT EVENTS_2_3
SUBSEQUENT EVENTS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
SUBSEQUENT EVENTS | NOTE 14 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the three and six months ended June 30, 2021, the Company has evaluated subsequent events for both conditions existing and not existing on June 30, 2021, and concluded there were no subsequent events to recognize in the financial statements. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share (“Common Stock”), and warrants began trading on The Nasdaq Stock Market LLC under the symbols “LCID” and “LCIDW,” respectively. Immediately prior to the Closing, all of Lucid’s preferred shares (the “Lucid Preferred Shares”) then issued and outstanding were converted into Lucid’s common shares, par value $0.0001 per share (the “Lucid Common Shares”) in accordance with the terms of Lucid Group’s Memorandum and Articles of Association, such that each converted Lucid Preferred Share was no longer outstanding and ceased to exist, and each holder thereof thereafter ceased to have any rights with respect to such securities. At the date and time that the business combination became effective, each Lucid Common Share then issued and outstanding was automatically cancelled and the holders of Lucid Common Shares received 2.644 shares of Common Stock in exchange for each Lucid Common Share they held at such time, based on the Equity Value (as defined in the Merger Agreement) of $12.3 billion. The Equity Value equals (a) $11.8 billion plus (b) (i) all cash and cash equivalents of Lucid and its subsidiaries less (ii) all indebtedness for borrowed money of Lucid and its subsidiaries, in each case as of two business days prior to the Closing. The holders of the Lucid Common Shares were issued 1,193,226,511 shares of Common Stock at the Closing. Subsequent to June 30, 2021, the Company entered into new retail lease agreements for various locations. The leases commenced in and after July 2021 and will expire on or before June 2031 | NOTE 15 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the year ended December 31, 2020, the Company has evaluated subsequent events through March 19, 2021, the date the financial statements were available to be issued, for both conditions existing and not existing at December 31, 2020, and concluded there were no subsequent events to recognize in the financial statements. In January 2021, the Company’s board of directors approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan will replace the 2009 Plan and 2014 Plan. 3,981,178 shares reserved for future issuance under 2009 Plan and 2014 Plan will be removed and added to share reserve under the 2021 Plan. If outstanding share awards issued under the 2009 Plan and 2014 Plan 1) expire or terminate for any reason prior to exercise or settlement, 2) are forfeited, canceled or otherwise returned to the Company because of the failure to meet vesting conditions, or 3) are reacquired, withheld to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a share award (collectively, the “Returning Shares”), will be added back to the 2021 Plan. The 2021 Plan provides for the grant of incentive share options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory share options, restricted shares. Restricted Stock Units (RSUs), share appreciation rights, performance based awards and cash based awards to the Company’s employees, directors, and consultants and its parent and subsidiary corporations’ employees and consultants. The 2021 Plan became effective in January 2021. 32,076,334 shares were authorized to issue under the 2021 Plan. In February 2021, the Company entered into new lease agreements for retail locations in Manhasset, New York and in Chicago, Illinois. The leases commenced in February 2021 and will expire on or before January 31, 2031. Under the lease agreements, the Company will pay base rent from $0.5 million to $0.8 million annually. Base rent is subject to a 2.5% annual escalation clause during the lease term. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”) entered into September 2020 (refer to Note 7). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 Series E convertible preferred shares at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to purchase up to 8,977,769 Series E convertible preferred shares on a pro rata basis at $7.90 per share, aggregating to $71.0 million. The Company will issue the Offer Notice to all Eligible Holders two business days following the third closing, and all Eligible Holders have 14 calendar days (the “Exercise Period”) to notice the Company on the number of Series E convertible preferred shares they intend to purchase. Along with the execution of the Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred shares to 498,017,734 and 437,182,072 shares, respectively. On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. In February 2021, the Company’s board of directors granted a total of 1,035,000 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $38.8 million and $44.0 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. Events Subsequent to the Original Issuance of Consolidated Financial Statements (Unaudited) In March 2021, the Company’s board of directors granted a total of 1,066,631 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $53.6 million and $60.7 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. In March 2021, the Company’s board of directors granted a total of 11,293,177 RSUs to its CEO under the 2021 Plan in connection with the proposed merger with CCIV. The CEO RSU Award will be comprised of 5,232,507 RSUs subject to performance and service conditions (the “CEO Time-Based RSUs”) and 6,060,670 RSUs subject to performance and market conditions (the “CEO Performance RSUs”). The aggregate grant date fair value of the CEO RSU Award is estimated to be $556.1 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques, including a Monte Carlo simulation method for awards with market conditions, with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The performance condition of the CEO Time-Based RSUs and CEO Performance RSUs will be satisfied upon the closing of the proposed merger with CCIV. The service condition for the CEO Time-Based RSUs will be satisfied in 16 equal quarterly installments beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. The market conditions for the CEO Performance RSUs will be satisfied based upon the achievement of certain market capitalization goals of the combined company during the five-year period beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. In April 2021, the Company issued 25,306,130 Series E Preferred Shares at a purchase price of approximately $7.90 per share for an aggregate purchase price of $200.0 million. The total number of shares issued include 202,449 shares issued to the CEO. In May 2021, the Company completed its evaluation related to the exercise of the convertible preferred share warrant liability that was settled in its entirety in February 2021. Upon final settlement, the Company converted the warrants into $12.9 million of Series D convertible preferred shares and recorded a $7.0 million loss related to fair value remeasurement of the warrants in the consolidated statements of operations. From March 2021 through May 2021, the Company entered into new lease agreements for retail locations in various locations. The leases commenced in April 2021 and will expire on or before March 2032. Under the lease agreements, the Company will pay base rent from $0.2 million to $1.2 million annually. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share ( “ ” “ ” “ ” | |
Churchill Capital Corp IV | |||
SUBSEQUENT EVENTS | NOTE 10. SUBSEQUENT EVENTS The Company’s management has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed consolidated financial statements were issued. Based upon this review, except as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements. On July 23, 2021, the Company and Lucid consummated the closing of the transactions contemplated by the Merger Agreements (see Note 6). | NOTE 12. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based upon this review, other than as described below and in Note 2, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. Merger Agreement On February 22, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Merger Sub and Atieva, relating to a proposed business combination transaction between the Company and Atieva. Pursuant to the Merger Agreement, Merger Sub will merge with and into Atieva with Atieva being the surviving entity in the merger (the “Merger” and, together with the other transactions contemplated by the Merger Agreement, the “Transactions”). The aggregate consideration to be paid to the shareholders of Atieva will be equal to (a) $11,750,000,000 plus (b) (i) all cash and cash equivalents of Atieva and its subsidiaries less (ii) all indebtedness for borrowed money of Atieva and its subsidiaries, in each case as of two business days prior to the closing date (the “Equity Value”) and will be paid entirely in shares of Class A common stock, par value $0.0001 per share, of the Company (the “Class A Common Stock”) in an amount equal to $10.00 per share (the “Merger Consideration”). At the effective time of the Merger: (i) each share of capital stock of Atieva (the “Atieva Shares”) will be cancelled and automatically deemed for all purposes to represent the right to receive, in the aggregate, the Merger Consideration. All share incentive plan or similar equity-based compensation plans maintained for employees of Atieva will be assumed by the Company and all outstanding options to purchase Atieva Shares (each, a “Atieva Option”) and each restricted stock unit award (“RSU”) with respect to Atieva Shares (each, a “Atieva RSU”) will be assumed by the Company as described below. For purposes of the following paragraph, the “Exchange Ratio” means the Equity Value per share divided by $10.00. (ii) each Atieva Option will become an option to purchase shares of Class A Common Stock (each, an “Assumed Option”), on the same terms and conditions (including applicable vesting, exercise and expiration provisions) as applied to the Atieva Option immediately prior to the effective time of the Merger, except that (i) the number of shares of Class A Common Stock subject to such Assumed Option shall equal the product of (x) the number of Atieva Shares that were subject to the option immediately prior to the effective time of the Merger, multiplied by (y) the Exchange Ratio, rounded down to the nearest whole share, and (B) the per-share exercise price shall equal the quotient of (1) the exercise price per Atieva Share at which such option was exercisable immediately prior to the effective time of the Merger, divided by (2) the Exchange Ratio, rounded up to the nearest whole cent. (iii) each Atieva RSU, will be assumed by the Company and become an RSU with respect to shares of Class A Common Stock (each, an “Assumed RSU”) on the same terms and conditions (including applicable vesting provisions) as applied to each Atieva RSU immediately prior to the effective time of the Merger, except that the number of shares of Class A Common Stock subject to such Assumed RSU Award will be equal the product of (x) the number of Atieva Shares that were subject to such RSU immediately prior to the effective time of the Merger, multiplied by (y) the Exchange Ratio, rounded down to the nearest whole share. The Merger Agreement contains customary representations, warranties and covenants by the parties thereto and the closing is subject to certain conditions as further described in the Merger Agreement. Subscription Agreement In connection with the execution of the Merger Agreement, the Company entered into certain common stock subscription agreements (the “Subscription Agreements”) with certain investment funds (the “PIPE Investors”) pursuant to which, the Company has agreed to issue and sell to the PIPE Investors $2.5 billion of Class A common stock (the “PIPE Shares”) in reliance on an exemption from registration under Section 4(a)(2) under the Securities Act at a purchase price of $15 per share (the “PIPE Investment”). Pursuant to the Subscription Agreements, the PIPE Investors have agreed to not transfer any PIPE Shares until the later of (i) the effectiveness of the registration statement to be filed following the closing of the Transactions to register the PIPE Shares and (ii) September 1, 2021. The closing of the PIPE Investment is conditioned on all conditions set forth in the Merger Agreement having been satisfied or waived and other customary closing conditions, and the Transactions will be consummated immediately following the closing of the PIPE Investment. The Subscription Agreements will terminate upon the earlier to occur of (i) the termination of the Merger Agreement and (ii) the mutual written agreement of the parties thereto. The Subscription Agreements provide that the Company is required to file with the SEC, within 30 days after the consummation of the Transactions, a shelf registration statement covering the resale of the PIPE Shares and to use its commercially reasonable efforts to have such registration statement declared effective as soon as practicable after the filing thereof but no later than the earlier of (i) the 90th day (or 150th day if the SEC notifies the Company that it will “review” such registration statement) following the closing of the PIPE Investment and (ii) the 10th business day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such registration statement will not be “reviewed” or will not be subject to further review. Consulting Agreements On February 20, 2021, the Company entered into a transactional support agreement with a service provider, pursuant to which the service provider agreed to render certain financial advisory and capital markets advisory services for a potential Business Combination. The Company agreed to pay the service provider a fee of (i) $6,000,000 is payable upon the consummation of a Business Combination (ii) $500,000 is payable upon consummation of the financing (iii) out-of-pocket expenses not to exceed $125,000 without prior approval. Promissory Note On February 22, 2021, the Company entered into a convertible promissory note with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $1,500,000 (the “Note”). The Note is non-interest bearing and payable on the earlier of (i) the date of which the Company consummates a Business Combination or (ii) the date that the winding up of the Company. If the Company does not consummate a Business Combination, the Company may use a portion of any funds held outside the Trust Account to repay the Promissory Note; however, no proceeds from the Trust Account may be used for such repayment. Up to $1,500,000 of the Note may be converted into warrants at a price of $1.00 per warrant at the option of the Sponsor. The warrants would be identical to the Private Placement Warrants. The Company borrowed an aggregate of $1,500,000 on February 22, 2021. Legal Proceedings On March 3, 2021, Richard Hofman, a purported stockholder of the Company, filed a complaint, individually and on behalf of other of the Company stockholders, in the Superior Court of the State of California against the Company, Lucid, and other unnamed defendants. The complaint alleged claims for fraud, negligent misrepresentation, and false advertising and unfair business practices in connection with allegedly false and misleading statements and omissions in the Company's public filings, concerning the proposed merger between the Company and Lucid. The complaint sought injunctive relief, as well as compensatory and punitive damages. On April 18, 2021, Randy Phillips, a purported stockholder of the Company, filed a complaint, individually and on behalf of other Company stockholders, in the United States District Court for the Northern District of Alabama against the Company, Atieva, Inc. (doing business as Lucid), Michael Klein, Jay Taragin, and Peter Rawlinson. The complaint alleges claims for violations of the federal securities laws under Section 10(b) and Section 20(a) of the Exchange Act in connection with allegedly false and misleading statements and omissions concerning Lucid's business plans and prospects, as well as the proposed merger between the Company and Lucid. The complaint seeks compensatory and punitive damages. |
SUMMARY OF SIGNIFICANT ACCOU_17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Basis of Presentation | Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. | ||
Net Income (Loss) per Common Share | Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. | ||
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. | |
Recent Accounting Standards | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. | |
Churchill Capital Corp IV | |||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the SEC on May 14, 2021. The interim results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods. | Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. | |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement under the Securities Act declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. | |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. | Use of Estimates The preparation of the financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2021 and December 31, 2020. | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of mutual funds. The Company did not have any cash equivalents as of December 31, 2020. | |
Marketable Securities Held in Trust Account | Marketable Securities Held in Trust Account At June 30, 2021 and December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. From inception to June 30, 2021, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes, of which no amounts were withdrawn during the three and six months ended June 30, 2021. | Marketable Securities Held in Trust Account At December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. Through December 31, 2020, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes. | |
Warrant Liability | Warrant Liability The Company accounts for the Warrants in accordance with the guidance contained in ASC 815-40-15-7D and 7F under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. The Public Warrants and Private Placement Warrants for periods where no observable traded price was available are valued using a Monte Carlo simulation and a modified Black Scholes model, respectively. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. | ||
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the issuer’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in capital and accumulated deficit. | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet. | |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. As of June 30, 2021 and December 31, 2020, the Company had a deferred tax asset of approximately $1,342,000 and $594,000 ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statements recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three and six months ended June 30, 2021, the Company recorded $1,962 of income tax expense. The Company’s effective tax rate for the three and six months ended June 30, 2021 was approximately 0%, which differs from the expected income tax rate primarily due to the permanent differences associated with the change in the fair value of the derivative liabilities and start-up costs (discussed above) which are not currently deductible. | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security “CARES” Act into law. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (“NOL) and allow businesses to carry back NOLs arising in 2018, 2019 and 2020 to the five prior years, suspend the excess business loss rules, accelerate refunds of previously generated corporate alternative minimum tax credits, generally loosen the business interest limitation under IRC section 163(j) from 30 percent to 50 percent among other technical corrections included in the Tax Cuts and Jobs Act tax provisions. The Company does not believe that the CARES Act will have a significant impact on Company’s financial position or statement of operations. | |
Net Income (Loss) per Common Share | Net income (Loss) per Share Net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering and private placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the inclusion of such warrants would be anti-dilutive. The Company’s statements of operations include a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable common stock is calculated by dividing the net income (loss), adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable common stock outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): For the Period From April 30, 2020 Three Months Six Months (inception) Ended Ended through June 30, June 30, June 30, 2021 2021 2020 Class A common stock subject to possible redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 27,453 $ 204,779 $ — Unrealized gain on investments held in Trust Account (3,956) — — Less: Company’s portion available to be withdrawn to pay taxes (23,497) (129,310) — Less: Company’s portion available to be withdrawn for working capital purposes — (75,469) — Net income allocable to Class A common stock subject to possible redemption $ — $ — $ — Denominator: Weighted Average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 207,000,000 201,682,674 — Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 $ 0.00 $ 0.00 Non-Redeemable Common Stock Numerator: Net Loss minus Net Earnings Net loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Less: Income allocable to Class A common stock subject to possible redemption — — — Non-Redeemable Net Loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Denominator: Weighted Average Non-redeemable Common stock Basic and diluted weighted average shares outstanding, Non-redeemable Common stock 51,750,000 58,496,884 45,000,000 Basic and diluted net loss per share, Non-redeemable Common stock $ (11.38) $ (24.97) $ (0.00) | Net Income (Loss) per Common Share Net income (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company has not considered the effect of the warrants sold in the Public Offering and Private Placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events and the inclusion of such warrants would be anti-dilutive. The Company’s statement of operations includes a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per ordinary share. Net income (loss) per common share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account by the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable ordinary shares is calculated by dividing the net loss, adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable ordinary shares outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on the non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): For the Period from April 30, 2020 (inception) through December 31, 2020 Class A Common Stock Subject to Possible Redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 475,781 Unrealized gain on investments held in Trust Account 4,159 Less: Company’s portion available to be withdrawn to pay taxes (193,315) Less: Company’s portion available to be withdrawn for working capital purposes (286,625) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 Non-Redeemable Common Stock Numerator: Net loss minus net earnings Net loss $ (63,467,875) Less: Net income allocable to Class A common stock subject to possible redemption — Non-redeemable net loss $ (63,467,875) Denominator: Weighted average non-redeemable Class B common stock Basic and diluted weighted average shares outstanding, Non-redeemable Class B common stock 62,139,949 Basic and diluted net loss per share, Non-redeemable Class B common stock $ (1.02) | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times may exceed the Federal Depository Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage limit of $250,000. The Company has not experienced losses on this account. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature, except for the Company’s derivative instruments (see Note 9). | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. | |
Recent Accounting Standards | Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements. | Recent Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
RESTATEMENT OF PREVIOUSLY ISS_2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 8 Months Ended |
Dec. 31, 2020 | |
Churchill Capital Corp IV | |
Summarizes the effects of the restatement on the financial statements | The table below summarizes the effects of the restatement on the financial statements for all periods being restated: As Previously As Reported Adjustments Restated Balance sheet as of August 3, 2020 (audited) Total Liabilities $ 72,450,000 $ 83,422,000 $ 155,872,000 Class A Common Stock Subject to Possible Redemption 1,998,159,110 (83,422,000) 1,914,737,110 Class A Common Stock 718 835 1,553 Additional Paid-in Capital 4,995,112 2,166,701 7,161,813 Accumulated Deficit (1,000) (2,167,536) (2,168,536) Shareholders’ Equity 5,000,005 — 5,000,005 Number of shares subject to redemption 199,815,911 (8,342,200) 191,473,711 Balance sheet as of September 30, 2020 (unaudited) Total Liabilities $ 72,483,333 $ 135,402,500 $ 207,885,833 Class A Common Stock Subject to Possible Redemption 1,998,003,495 (135,402,500) 1,862,600,995 Class A Common Stock 721 1,354 2,075 Additional Paid-in Capital 5,150,724 54,146,682 59,297,406 Accumulated Deficit (156,614) (54,148,036) (54,304,650) Shareholders’ Equity 5,000,006 — 5,000,006 Number of shares subject to redemption 199,787,373 (13,539,371) 186,248,002 Balance sheet as of December 31, 2020 (audited) Total Liabilities $ 73,978,373 $ 142,200,500 $ 216,178,873 Class A Common Stock Subject to Possible Redemption 1,995,638,270 (142,200,500) 1,853,437,770 Class A Common Stock 744 1,422 2,166 Additional Paid-in Capital 7,515,926 60,944,614 68,460,540 Accumulated Deficit (2,521,839) (60,946,036) (63,467,875) Shareholders’ Equity 5,000,006 — 5,000,006 Number of shares subject to redemption 199,563,827 (14,220,050) 185,343,777 Statement of Operations for the three Month Ended September 30, 2020 (unaudited) Net loss $ (155,614) $ (54,148,036) $ (54,303,650) Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 199,815,911 (8,342,200) 191,473,711 Basic and diluted net income per share, Class A common stock subject to possible redemption 0.00 0.00 0.00 Basic and diluted weighted average shares outstanding, Non-redeemable common stock 53,784,534 5,259,213 59,043,747 Basic and diluted net loss per share, Non-redeemable common stock 0.00 (0.92) (0.92) Statement of Operations for the period from April 30, 2020 (inception) to September 30, 2020 (unaudited) Net loss $ (156,614) $ (54,148,036) $ (54,304,650) Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 199,815,911 (8,342,200) 191,473,711 Basic and diluted net income per share, Class A common stock subject to possible redemption 0.00 0.00 0.00 Basic and diluted weighted average shares outstanding, Non-redeemable common stock 51,169,291 3,693,493 54,862,784 Basic and diluted net loss per share, Non-redeemable common stock 0.00 (0.99) (0.99) Statement of Operations for the period from April 30, 2020 (inception) to December 31, 2020 (audited) Net loss $ (2,521,839) $ (60,946,036) $ (63,467,875) Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 199,798,408 (11,529,798) 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption 0.00 0.00 0.00 Basic and diluted weighted average shares outstanding, Non-redeemable common stock 54,384,479 7,755,470 62,139,949 Basic and diluted net loss per share, Non-redeemable common stock (0.05) (0.97) (1.02) Statement of Cash Flows for the period from April 30, 2020 (inception) to December 31, 2020 (audited) Net loss $ (2,521,839) $ (60,946,036) $ (63,467,875) Loss on warrant liabilities — 58,778,500 58,778,500 Transaction costs attributable to Initial Public Offering — 2,167,536 2,167,536 Initial classification of Class A common stock subject to possible redemption 1,998,159,110 (83,422,000) 1,914,737,110 Change in value of Class A common stock subject to possible redemption (2,520,840) (58,778,500) (61,299,340) Statement of Cash Flows for the period from April 30, 2020 (inception) to September 30, 2020 (unaudited) Net loss $ (156,614) $ (54,148,036) $ (54,304,650) Loss on warrant liabilities — 51,980,500 51,980,500 Transaction costs attributable to Initial Public Offering — 2,167,536 2,167,536 Initial classification of Class A common stock subject to possible redemption 1,998,159,110 (83,422,000) 1,914,737,110 Change in value of Class A common stock subject to possible redemption (155,615) (51,980,500) (52,136,115) |
SUMMARY OF SIGNIFICANT ACCOU_18
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Schedule of basic and diluted loss per common share | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (261,726) $ (117,285) $ (1,009,678) $ (246,868) Deemed dividend related to the issuance of Series E convertible preferred shares — — (2,167,332) — Net loss attributable to common shareholders $ (261,726) $ (117,285) $ (3,177,010) $ (246,868) Weighted-average shares outstanding — basic and diluted 13,728,639 8,319,168 13,042,653 8,117,746 Net loss per share: Basic and diluted $ (19.06) $ (14.10) $ (243.59) $ (30.41) | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2020 2019 Basic and diluted net loss per share Numerator: Net loss $ (719,380) $ (277,357) Deemed contribution related to repurchase of Series B convertible preferred shares 1,000 — Deemed contribution related to repurchase of Series C convertible preferred shares 12,784 7,935 Net loss attributable to common shareholders $ (705,596) $ (269,422) Denominator: Weighted-average shares outstanding – basic 9,389,540 7,789,421 Effect of dilutive potential common shares from share options, share awards and employee share purchase plan — — Weighted-average shares outstanding – diluted 9,389,540 7,789,421 Net loss per share: Basic $ (75.15) $ (34.59) Diluted $ (75.15) $ (34.59) | |
Churchill Capital Corp IV | |||
Schedule of basic and diluted loss per common share | The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): For the Period From April 30, 2020 Three Months Six Months (inception) Ended Ended through June 30, June 30, June 30, 2021 2021 2020 Class A common stock subject to possible redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 27,453 $ 204,779 $ — Unrealized gain on investments held in Trust Account (3,956) — — Less: Company’s portion available to be withdrawn to pay taxes (23,497) (129,310) — Less: Company’s portion available to be withdrawn for working capital purposes — (75,469) — Net income allocable to Class A common stock subject to possible redemption $ — $ — $ — Denominator: Weighted Average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 207,000,000 201,682,674 — Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 $ 0.00 $ 0.00 Non-Redeemable Common Stock Numerator: Net Loss minus Net Earnings Net loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Less: Income allocable to Class A common stock subject to possible redemption — — — Non-Redeemable Net Loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Denominator: Weighted Average Non-redeemable Common stock Basic and diluted weighted average shares outstanding, Non-redeemable Common stock 51,750,000 58,496,884 45,000,000 Basic and diluted net loss per share, Non-redeemable Common stock $ (11.38) $ (24.97) $ (0.00) | The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): For the Period from April 30, 2020 (inception) through December 31, 2020 Class A Common Stock Subject to Possible Redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 475,781 Unrealized gain on investments held in Trust Account 4,159 Less: Company’s portion available to be withdrawn to pay taxes (193,315) Less: Company’s portion available to be withdrawn for working capital purposes (286,625) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 Non-Redeemable Common Stock Numerator: Net loss minus net earnings Net loss $ (63,467,875) Less: Net income allocable to Class A common stock subject to possible redemption — Non-redeemable net loss $ (63,467,875) Denominator: Weighted average non-redeemable Class B common stock Basic and diluted weighted average shares outstanding, Non-redeemable Class B common stock 62,139,949 Basic and diluted net loss per share, Non-redeemable Class B common stock $ (1.02) |
INCOME TAX (Tables)
INCOME TAX (Tables) | 8 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Schedule of Company's net deferred tax asset | Significant components of the Company’s deferred taxes as of December 31, 2020 and 2019, are as follows (in thousands): 2020 2019 Deferred tax assets: Net operating loss carryforwards $ 265,799 $ 139,899 Tax credit carryforwards 40,454 18,076 Share-based compensation expense 2,554 4,191 Depreciation 499 210 Accrued compensation and vacation 2,498 699 Interest 489 409 Tenant improvement allowance 8,777 7,757 Accruals and reserves 39,502 3,577 Other 1 — Total deferred tax assets 360,573 174,818 Valuation allowance (360,573) (174,818) Net deferred tax assets — — Net deferred tax assets (liabilities) $ — $ — | |
Schedule of components of Company's income tax provision | The Company recorded an income tax provision/(benefit) of $(0.19) million and $0.03 million in connection with its domestic state and foreign subsidiaries for the years ended December 31, 2020 and 2019, respectively, as follows (in thousands): 2020 2019 Current Federal $ — $ — State 5 2 Foreign (193) 23 Total current tax expense (benefit) $ (188) $ 25 Deferred Federal $ — $ — State — — Foreign — — Total deferred tax expense (benefit) $ — $ — Total income tax expense (benefit) $ (188) $ 25 | |
Schedule of reconciliation of the federal income tax rate to the Company's effective tax rate | Year Ended December 31, 2020 2019 Statutory federal income tax rate 21.0 % 21.0 % Share-based compensation (0.2) (0.2) Mark-to-market adjustment (3.4) (1.1) Nondeductible expenses (0.1) (0.8) Tax credits 2.8 1.9 Change in valuation allowance (20.1) (20.8) Provision for income taxes — % — % | |
Churchill Capital Corp IV | ||
Schedule of Company's net deferred tax asset | The Company’s net deferred tax asset is as follows: December 31, 2020 Deferred tax asset Startup/organizational expenses $ 596,809 Unrealized gain on marketable securities (2,900) Total deferred tax asset 593,909 Valuation Allowance (593,909) Deferred tax asset, net of allowance $ — | |
Schedule of components of Company's income tax provision | The income tax provision consists of the following: As of December 31, 2020 Federal Current $ 81,422 Deferred (593,909) State and Local Current — Deferred — Change in valuation allowance 593,909 Income tax provision $ 81,422 | |
Schedule of reconciliation of the federal income tax rate to the Company's effective tax rate | A reconciliation of the federal income tax rate to the Company’s effective tax rate is as follows: December 31, 2020 Statutory federal income tax rate 21.0 % State taxes, net of federal tax benefit 0.0 % Loss on warrant liability (19.5) % Transaction costs incurred in connection with IPO (0.7) % Valuation allowance (0.9) % Income tax provision (0.1) % |
FAIR VALUE MEASUREMENTS (Tabl_2
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 | The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 | |
Schedule of significant inputs | December 31, 2020 Volatility 50.00 % Expected term (in years) 0.5 – 1.5 Risk-free rate 0.09 – 0.12 % Expected dividend rate 0.00 % | As of December 31, 2020 2019 Volatility 50.0 % 55.0 % Expected term (in years) 0.5 – 1.5 2.3 Risk-free rate 0.09 – 0.12 % 1.59 % Expected dividend rate 0.0 % 0.0 % | |
Churchill Capital Corp IV | |||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | June 30, December 31, Description Level 2021 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,290,785 $ 2,070,086,006 Liabilities: Warrant liability – Public Warrants 1 658,260,000 62,928,000 Warrant liability – Private Placement Warrants 3 910,991,000 79,272,500 Conversion option liability 3 30,394,794 — | The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level December 31, 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,086,006 Liabilities: Warrant Liability – Public Warrants 1 $ 62,928,000 Warrant Liability – Private Placement Warrants 3 $ 79,272,500 | |
Schedule of significant inputs | June 30, March 31, December 31, 2021 2021 2020 Exercise price $ 11.50 $ 11.50 $ 11.50 Stock price $ 28.82 $ 23.18 $ 10.01 Volatility 76.52 % 40 % 30 % Probability of completing a Business Combination 95 % 90 % 80 % Term 5.06 5.23 5.33 Risk-free rate 0.88 % 0.97 % 0.50 % Dividend yield 0.0 % 0.0 % 0.0 % | As of issuance and December 31, 2020, the estimated fair value of Warrant Liability — Private Placement Warrants were determined using a Black-Scholes valuation and based on the following significant inputs: At As of December 31, issuance 2020 Exercise price $ 11.50 $ 11.50 Stock price $ 9.80 $ 10.01 Volatility 19.8 % 30 % Probability of completing a Business Combination 80.0 % 80 % Term 5.33 5.33 Risk-free rate 0.34 % 0.50 % Dividend yield 0.0 % 0.0 % | |
Schedule of changes in the fair value of warrant liabilities | Private Placement Warrants January 1, 2021 $ 79,272,500 Change in fair value 454,210,000 Fair value as of March 31, 2021 533,482,500 Change in fair value 377,508,500 Fair value as of June 30, 2021 910,991,000 | The following table presents the changes in the fair value of warrant liabilities: Private Placement Public Warrant Liabilities Fair value as of April 30, 2020 (inception) $ — $ — $ — Initial measurement on July 30, 2020 42,850,000 40,572,000 83,422,000 Change in valuation inputs or other assumptions 36,422,500 22,356,000 58,778,500 Fair value as of December 31, 2020 $ 79,272,500 $ 62,928,000 $ 142,200,500 |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) | Jul. 23, 2021shares | Aug. 03, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($)subsidiary | Dec. 31, 2020USD ($)$ / sharesshares | Feb. 22, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 29, 2020USD ($) | Dec. 31, 2019USD ($) |
Issuance of Class B common stock to Sponsor (in shares) | shares | 1,193,226,511 | |||||||
Cash | $ 557,938,000 | $ 614,412,000 | $ 293,896,000 | $ 351,684,000 | ||||
Churchill Capital Corp IV | ||||||||
Number of subsidiaries | 1 | 1 | ||||||
Proceeds from Issuance Initial Public Offering | $ 2,033,596,400 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 11.50 | |||||||
Proceeds from Issuance of Warrants | $ 42,850,000 | |||||||
Deferred underwriting fee payable | $ 72,450,000 | 72,450,000 | ||||||
Working Capital Requirement Fund Annual Limit | $ 1,000,000 | |||||||
Temporary Equity, Redemption Price Per Share | $ / shares | $ 10 | |||||||
Maximum Percentage Of Shares Eligible From Redemption | 15.00% | |||||||
Percentage of obligation To Reddem Shares, Business Combination Not Complete | 100.00% | |||||||
Dissolution Expenses Payable | $ 100,000 | |||||||
Cash | 1,000,159 | 3,592,857 | $ 172,100 | $ 0 | ||||
Cash and marketable securities held in Trust Account | 2,070,290,785 | 2,070,086,006 | ||||||
Working capital | 3,218,168 | |||||||
Amount deposited in trust account | 290,785 | $ 86,000 | ||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | |||||||
Initial Public Offering | Churchill Capital Corp IV | ||||||||
Issuance of Class B common stock to Sponsor (in shares) | shares | 207,000,000 | 207,000,000 | ||||||
Shares issued, price per share | $ / shares | $ 10 | |||||||
Proceeds from Issuance Initial Public Offering | $ 2,070,000,000 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 11.50 | |||||||
Transaction Cost Related To Issuance Of Common Stock | 109,714,885 | $ 109,714,885 | ||||||
Underwriting Fees | 36,403,600 | |||||||
Deferred underwriting fee payable | 72,450,000 | |||||||
Other Costs Related To Issuance Of Common Stock | $ 861,285 | |||||||
Over-Allotment Option | Churchill Capital Corp IV | ||||||||
Issuance of Class B common stock to Sponsor (in shares) | shares | 27,000,000 | 27,000,000 | ||||||
Shares issued, price per share | $ / shares | $ 10 | |||||||
Private Placement | Churchill Capital Corp IV | ||||||||
Number Of warrants issued | shares | 42,850,000 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 1 | |||||||
Proceeds from Issuance of Warrants | $ 42,850,000 | $ 42,850,000 | ||||||
Churchill Sponsor LLC [Member] | Churchill Capital Corp IV | ||||||||
Business Combination Aggregate Fair Market Value On Assets Held In Trust Percentage | 80.00% | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 5,000,001 |
RESTATEMENT OF PREVIOUSLY ISS_3
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Balance Sheet (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Aug. 03, 2020 | Jun. 30, 2020 | Apr. 29, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Total Liabilities | $ 368,531,000 | $ 227,382,000 | $ 126,672,000 | ||||||
Class A Common Stock Subject to Possible Redemption | 5,836,785,000 | 2,494,076,000 | |||||||
Class A Common Stock | 1,000 | 1,000 | 1,000 | ||||||
Additional Paid-in Capital | 26,615,000 | 38,115,000 | 16,432,000 | ||||||
Accumulated deficit | (4,495,788,000) | (1,356,893,000) | (637,513,000) | ||||||
Shareholders' Equity | $ (4,469,172,000) | $ (4,227,863,000) | $ (1,318,777,000) | $ (865,644,000) | $ (749,659,000) | $ (621,080,000) | |||
Number of shares subject to redemption | 437,182,072 | 362,011,991 | 190,084,166 | ||||||
Churchill Capital Corp IV | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Total Liabilities | $ 1,674,146,585 | $ 216,178,873 | $ 207,885,833 | $ 155,872,000 | |||||
Class A Common Stock Subject to Possible Redemption | 2,070,000,000 | 1,853,437,770 | 1,862,600,995 | 1,914,737,110 | |||||
Additional Paid-in Capital | 68,460,540 | 59,297,406 | 7,161,813 | ||||||
Accumulated deficit | (1,672,185,472) | (63,467,875) | 54,304,650 | 2,168,536 | |||||
Shareholders' Equity | (1,672,180,297) | (1,083,360,382) | $ 5,000,006 | $ 5,000,006 | $ 5,000,005 | 24,000 | $ 0 | ||
Number of shares subject to redemption | 185,343,777 | 186,248,002 | 191,473,711 | ||||||
Class A Common Stock | Churchill Capital Corp IV | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Class A Common Stock | $ 2,166 | $ 2,075 | $ 1,553 | ||||||
Shareholders' Equity | $ 0 | $ 0 | $ 2,166 | $ 0 | $ 0 | ||||
Number of shares subject to redemption | 207,000,000 | 185,343,777 | |||||||
As Previously Reported | Restatement of warrants as derivative liabilities | Churchill Capital Corp IV | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Total Liabilities | $ 73,978,373 | 72,483,333 | 72,450,000 | ||||||
Class A Common Stock Subject to Possible Redemption | 1,995,638,270 | 1,998,003,495 | 1,998,159,110 | ||||||
Additional Paid-in Capital | 7,515,926 | 5,150,724 | 4,995,112 | ||||||
Accumulated deficit | (2,521,839) | 156,614 | 1,000 | ||||||
Shareholders' Equity | $ 5,000,006 | $ 5,000,006 | $ 5,000,005 | ||||||
Number of shares subject to redemption | 199,563,827 | 199,787,373 | 199,815,911 | ||||||
As Previously Reported | Restatement of warrants as derivative liabilities | Class A Common Stock | Churchill Capital Corp IV | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Class A Common Stock | $ 744 | $ 721 | $ 718 | ||||||
As Adjustments | Restatement of warrants as derivative liabilities | Churchill Capital Corp IV | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Total Liabilities | 142,200,500 | 135,402,500 | 83,422,000 | ||||||
Class A Common Stock Subject to Possible Redemption | (142,200,500) | (135,402,500) | (83,422,000) | ||||||
Additional Paid-in Capital | 60,944,614 | 54,146,682 | 2,166,701 | ||||||
Accumulated deficit | $ (60,946,036) | $ 54,148,036 | $ 2,167,536 | ||||||
Number of shares subject to redemption | (14,220,050) | (13,539,371) | (8,342,200) | ||||||
As Adjustments | Restatement of warrants as derivative liabilities | Class A Common Stock | Churchill Capital Corp IV | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Class A Common Stock | $ 1,422 | $ 1,354 | $ 835 |
RESTATEMENT OF PREVIOUSLY ISS_4
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statement of Operations (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 | ||||
Basic and diluted net loss per share, Non-redeemable common stock | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) | ||||
Churchill Capital Corp IV | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss | $ (1,000) | $ (588,819,915) | $ (54,303,650) | $ (54,304,650) | $ (1,460,618,073) | $ (63,467,875) | ||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 207,000,000 | 191,473,711 | 191,473,711 | 201,682,674 | 188,268,610 | |||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 45,000,000 | 51,750,000 | 59,043,747 | 54,862,784 | 58,496,884 | 62,139,949 | ||||
Basic and diluted net loss per share, Non-redeemable common stock | $ 0 | $ (11.38) | $ (0.92) | $ (0.99) | $ (24.97) | $ (1.02) | ||||
As Previously Reported | Restatement of warrants as derivative liabilities | Churchill Capital Corp IV | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss | $ (155,614) | $ (156,614) | $ (2,521,839) | |||||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 199,815,911 | 199,815,911 | 199,798,408 | |||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ 0 | $ 0 | $ 0 | |||||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 53,784,534 | 51,169,291 | 54,384,479 | |||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ 0 | $ 0 | $ (0.05) | |||||||
As Adjustments | Restatement of warrants as derivative liabilities | Churchill Capital Corp IV | ||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||
Net loss | $ (54,148,036) | $ (54,148,036) | $ (60,946,036) | |||||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | (8,342,200) | (8,342,200) | (11,529,798) | |||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ 0 | $ 0 | $ 0 | |||||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 5,259,213 | 3,693,493 | 7,755,470 | |||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ (0.92) | $ (0.99) | $ (0.97) |
RESTATEMENT OF PREVIOUSLY ISS_5
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Statement of Cash Flows (Details) - USD ($) | Apr. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net loss | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | |||||
Loss on warrant liabilities | $ 57,000 | 6,976,000 | $ 114,000 | $ 1,205,000 | $ 406,000 | ||||||
Churchill Capital Corp IV | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net loss | $ (1,000) | (588,819,915) | $ (54,303,650) | $ (54,304,650) | (1,460,618,073) | $ (63,467,875) | |||||
Loss on warrant liabilities | $ 587,379,256 | 51,980,500 | 1,399,753,658 | 58,778,500 | |||||||
Transaction costs attributable to Initial Public Offering | 2,167,536 | 2,167,536 | |||||||||
Initial classification of Class A common stock subject to possible redemption | $ 1,914,737,110 | 1,914,737,110 | 1,914,737,110 | ||||||||
Change in value of Class A common stock subject to possible redemption | (52,136,115) | $ 216,562,230 | (61,299,340) | ||||||||
As Previously Reported | Restatement of warrants as derivative liabilities | Churchill Capital Corp IV | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net loss | (155,614) | (156,614) | (2,521,839) | ||||||||
Initial classification of Class A common stock subject to possible redemption | 1,998,159,110 | 1,998,159,110 | |||||||||
Change in value of Class A common stock subject to possible redemption | (155,615) | (2,520,840) | |||||||||
As Adjustments | Restatement of warrants as derivative liabilities | Churchill Capital Corp IV | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net loss | $ (54,148,036) | (54,148,036) | (60,946,036) | ||||||||
Loss on warrant liabilities | 51,980,500 | 58,778,500 | |||||||||
Transaction costs attributable to Initial Public Offering | 2,167,536 | 2,167,536 | |||||||||
Initial classification of Class A common stock subject to possible redemption | (83,422,000) | (83,422,000) | |||||||||
Change in value of Class A common stock subject to possible redemption | $ (51,980,500) | $ (58,778,500) |
SUMMARY OF SIGNIFICANT ACCOU_19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 27, 2020 | Mar. 26, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Unrecognized Tax Benefits | $ 65,400,000 | $ 42,894,000 | $ 42,894,000 | $ 20,635,000 | $ 11,647,000 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 389,327,467 | 216,881,686 | |||||
Churchill Capital Corp IV | |||||||
Interest earned on the Trust Account withdrawn for working capital purposes. | 450,000 | ||||||
Unrecognized Tax Benefits | 0 | 0 | $ 0 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | 0 | 0 | ||||
Business interest limitation, percentage | 50.00% | 30.00% | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 84,250,000 | ||||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | $ 250,000 | ||||
If Underwriters Do Not Exercise Overallotment Option [Member] | Churchill Capital Corp IV | |||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 84,250,000 |
SUMMARY OF SIGNIFICANT ACCOU_20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Income (Loss) per Common Share (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-Redeemable Common Stock Numerator: Net loss minus net earnings | ||||||||||
Net loss | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | ||||
Non-redeemable Net loss | $ (261,726,000) | $ (117,285,000) | $ (3,177,010,000) | $ (246,868,000) | $ (705,596,000) | $ (269,422,000) | ||||
Denominator: Weighted average non-redeemable Class B common stock | ||||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable Common stock | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 | ||||
Basic and diluted net loss per share, Non-redeemable Common stock | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) | ||||
Churchill Capital Corp IV | ||||||||||
Numerator: Earnings allocable to Class A common stock subject to possible redemption | ||||||||||
Interest income | $ 27,453 | $ 204,779 | $ 475,781 | |||||||
Unrealized gain on investments held in Trust Account | (3,956) | 4,159 | ||||||||
Less: Company's portion available to be withdrawn to pay taxes | $ 23,497 | 129,310 | (193,315) | |||||||
Less: Company's portion available to be withdrawn for working capital purposes | $ 75,469 | $ (286,625) | ||||||||
Denominator: Weighted average Class A common stock subject to possible redemption | ||||||||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 207,000,000 | 191,473,711 | 191,473,711 | 201,682,674 | 188,268,610 | |||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Non-Redeemable Common Stock Numerator: Net loss minus net earnings | ||||||||||
Net loss | $ (1,000) | $ (588,819,915) | $ (54,303,650) | $ (54,304,650) | $ (1,460,618,073) | $ (63,467,875) | ||||
Non-redeemable Net loss | $ (1,000) | $ (588,819,915) | $ (1,460,618,073) | $ (63,467,875) | ||||||
Denominator: Weighted average non-redeemable Class B common stock | ||||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable Common stock | 45,000,000 | 51,750,000 | 59,043,747 | 54,862,784 | 58,496,884 | 62,139,949 | ||||
Basic and diluted net loss per share, Non-redeemable Common stock | $ 0 | $ (11.38) | $ (0.92) | $ (0.99) | $ (24.97) | $ (1.02) |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) - $ / shares | Jul. 23, 2021 | Aug. 03, 2020 | Dec. 31, 2020 |
Number of shares issued | 1,193,226,511 | ||
Churchill Capital Corp IV | |||
Exercise price of warrants | $ 11.50 | ||
Number of warrants issued | 41,400,000 | ||
Initial Public Offering | Churchill Capital Corp IV | |||
Number of shares issued | 207,000,000 | 207,000,000 | |
Number of shares in a unit | 1 | ||
Number of warrants in a unit | 0.2 | ||
Number of shares issuable per warrant | 1 | ||
Exercise price of warrants | $ 11.50 | ||
Over-Allotment Option | Churchill Capital Corp IV | |||
Number of shares issued | 27,000,000 | 27,000,000 | |
Unit price | $ 10 | ||
Class A Common Stock | Initial Public Offering | Churchill Capital Corp IV | |||
Number of shares issued | 207,000,000 | ||
Number of shares in a unit | 1 |
PRIVATE PLACEMENT (Details)
PRIVATE PLACEMENT (Details) - Churchill Capital Corp IV - USD ($) | Aug. 03, 2020 | Dec. 31, 2020 |
Class of warrant or right, exercise price of warrants or rights | $ 11.50 | |
Sale of 42,850,000 private placement warrants | $ 42,850,000 | |
Private Placement | ||
Number Of warrants issued | 42,850,000 | |
Class of warrant or right, exercise price of warrants or rights | $ 1 | |
Sale of 42,850,000 private placement warrants | $ 42,850,000 | $ 42,850,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jul. 23, 2021 | May 28, 2021 | Aug. 03, 2020 | Jul. 30, 2020 | Jul. 27, 2020 | Jul. 14, 2020 | May 22, 2020 | May 13, 2020 | Apr. 02, 2019 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Mar. 31, 2021 | Dec. 31, 2019 |
Issuance of Class B common stock (in shares) | 1,193,226,511 | ||||||||||||||
Common Stock, Shares, Issued | 13,917,981 | 13,917,981 | 10,889,451 | 8,051,722 | |||||||||||
Common stock, shares, outstanding | 13,917,981 | 13,917,981 | 10,889,451 | 8,051,722 | |||||||||||
Debt conversion, original debt, amount | $ 271,984,000 | ||||||||||||||
Churchill Capital Corp IV | |||||||||||||||
Issuance of Class B common stock | $ 25,000 | $ 25,000 | |||||||||||||
Fees incurred for services | 250,000 | ||||||||||||||
Initial public offering cost | $ 600,000 | ||||||||||||||
Repayment of promissory note - related party | $ 550,000 | $ 152,900 | 550,000 | ||||||||||||
Debt conversion, original debt, amount | $ 1,500,000 | $ 1,500,000 | |||||||||||||
Conversion price | $ 1 | $ 1 | $ 1 | ||||||||||||
Over-Allotment Option | Churchill Capital Corp IV | |||||||||||||||
Issuance of Class B common stock (in shares) | 27,000,000 | 27,000,000 | |||||||||||||
Sponsor | Churchill Capital Corp IV | |||||||||||||||
Weighted average number of shares, common stock subject to repurchase or cancellation | 6,750,000 | 6,750,000 | |||||||||||||
Equity method investment, ownership percentage | 20.00% | 20.00% | 20.00% | ||||||||||||
Sponsor | Over-Allotment Option | Churchill Capital Corp IV | |||||||||||||||
Weighted average number of shares, common stock subject to repurchase or cancellation | 6,750,000 | 6,750,000 | |||||||||||||
Administrative Support Agreement | Churchill Capital Corp IV | |||||||||||||||
Management fee expense | $ 50,000 | ||||||||||||||
Fees incurred for services | $ 50,000 | $ 150,000 | $ 300,000 | ||||||||||||
Class A Common Stock | Churchill Capital Corp IV | |||||||||||||||
Common Stock, Shares, Issued | 0 | 0 | 21,656,223 | ||||||||||||
Common stock, shares, outstanding | 0 | 0 | 21,656,223 | ||||||||||||
Share price | $ 12 | $ 12 | $ 12 | ||||||||||||
Class B Common Stock | Churchill Capital Corp IV | |||||||||||||||
Issuance of Class B common stock (in shares) | 21,562,500 | 51,750,000 | |||||||||||||
Issuance of Class B common stock | $ 25,000 | $ 5,175 | |||||||||||||
Common stock dividends per share | $ 0.20 | $ 0.50 | $ 0.33 | ||||||||||||
Effected common stock dividend share | 1 | 1 | 1 | ||||||||||||
Common Stock, Shares, Issued | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | ||||||||||
Common stock, shares, outstanding | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 |
COMMITMENTS AND CONTINGENCIE_10
COMMITMENTS AND CONTINGENCIES (Details) - Churchill Capital Corp IV - USD ($) | Feb. 20, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Underwriting Fees Payable Per Unit | $ 0.35 | ||
Deferred Underwriting Fees Payable | $ 72,450,000 | ||
Deferred Underwriting Discount Shares | $ 19,982,000 | 19,982,000 | |
Deferred Underwriting Upfront Payment | 3,996,400 | 3,996,400 | |
Reimbursement of expenses payable | 1,000,000 | 1,000,000 | |
Transaction fee | $ 6,000,000 | ||
placement fee | 500,000 | ||
Total fees | $ 125,000 | ||
Legal fees | $ 6,487,154 | $ 2,152,960 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Jul. 23, 2021$ / shares | Jun. 30, 2021Vote$ / sharesshares | Mar. 31, 2021shares | Feb. 28, 2021shares | Dec. 31, 2020$ / sharesshares | Sep. 30, 2020shares | Aug. 03, 2020shares | Jul. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares |
Common Stock, Shares Authorized | 498,017,734 | 498,017,734 | 450,000,098 | 335,130,459 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common Stock, Shares, Issued | 13,917,981 | 10,889,451 | 8,051,722 | ||||||
Common Stock, Shares, Outstanding | 13,917,981 | 10,889,451 | 8,051,722 | ||||||
Class A common stock subject to possible redemption | 437,182,072 | 362,011,991 | 190,084,166 | ||||||
Churchill Capital Corp IV | |||||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | ||||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | ||||||
Class A common stock subject to possible redemption | 185,343,777 | 186,248,002 | 191,473,711 | ||||||
Sponsor | Churchill Capital Corp IV | |||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||
Class A Common Stock | |||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||||||
Class A Common Stock | Churchill Capital Corp IV | |||||||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | 1 | 1 | |||||||
Common Stock, Shares, Issued | 0 | 21,656,223 | |||||||
Common Stock, Shares, Outstanding | 0 | 21,656,223 | |||||||
Class A common stock subject to possible redemption | 207,000,000 | 185,343,777 | |||||||
Class B Common Stock | Churchill Capital Corp IV | |||||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | 1 | 1 | |||||||
Common Stock, Shares, Issued | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | |||||
Common Stock, Shares, Outstanding | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 |
WARRANT LIABILITY (Details)
WARRANT LIABILITY (Details) - Churchill Capital Corp IV | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020D$ / shares | |
Class of Warrant or Right [Line Items] | ||
Public Warrants exercisable term after the completion of a business combination | 30 days | |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Public Warrants exercisable term after the completion of a business combination | 30 days | 30 days |
Public Warrants exercisable term from the closing of the initial public offering | 12 months | 12 months |
Class of Warrant or Right Warrants Expiration Period | 5 years | 5 years |
Threshold period for filling registration statement after business combination | 15 days | |
Maximum threshold period for registration statement to become effective after business combination | 60 days | 60 days |
Class of Warrant or Right Warrants Redemption Price | $ 0.01 | |
Redemption period | 30 days | |
Share Price | $ 18 | |
Threshold trading days for redemption of public warrants | D | 20 | |
Minimum threshold written notice period for redemption of public warrants | 30 days | 30 days |
INCOME TAX - Net deferred tax a
INCOME TAX - Net deferred tax asset (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax asset | |||
Total deferred tax asset | $ 360,573,000 | $ 174,818,000 | |
Valuation Allowance | (360,573,000) | $ (174,818,000) | |
Churchill Capital Corp IV | |||
Deferred tax asset | |||
Startup/organizational expenses | 596,809 | ||
Unrealized gain on marketable securities | (2,900) | ||
Total deferred tax asset | $ 1,342,000 | 593,909 | |
Valuation Allowance | $ (593,909) |
INCOME TAX - Components of Comp
INCOME TAX - Components of Company's income tax provision (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
State and Local | |||||||
Current | $ 5,000 | $ 2,000 | |||||
Change in valuation allowance | (185,800,000) | (80,700,000) | |||||
Income tax provision | $ 5,000 | $ (28,000) | $ 9,000 | $ (100,000) | $ (188,000) | $ 23,000 | |
Churchill Capital Corp IV | |||||||
Federal | |||||||
Current | $ 81,422 | ||||||
Deferred | (593,909) | ||||||
State and Local | |||||||
Change in valuation allowance | 593,909 | ||||||
Income tax provision | $ 1,962 | $ 25,540 | $ 81,422 |
INCOME TAX - Effective Tax Reco
INCOME TAX - Effective Tax Reconciliation (Details) | Dec. 22, 2017 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Statutory federal income tax rate | 35.00% | 21.00% | 21.00% | 21.00% | ||
Valuation allowance | (20.10%) | (20.80%) | ||||
Income tax provision | 0.00% | 0.00% | ||||
Churchill Capital Corp IV | ||||||
Statutory federal income tax rate | 0.00% | 0.00% | 21.00% | |||
State taxes, net of federal tax benefit | 0.00% | |||||
Loss on warrant liability | (19.50%) | |||||
Transaction costs incurred in connection with IPO | (0.70%) | |||||
Valuation allowance | (0.90%) | |||||
Income tax provision | (0.10%) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Churchill Capital Corp IV - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities: | |||
Warrant Liability | $ 30,394,794 | $ 17,174,038 | $ 142,200,500 |
Recurring | Level 1 | |||
Assets: | |||
Marketable securities held in Trust Account | 2,070,290,785 | 2,070,086,006 | |
Recurring | Level 3 | |||
Liabilities: | |||
Warrant Liability | 30,394,794 | ||
Public Warrants | |||
Liabilities: | |||
Warrant Liability | 62,928,000 | ||
Public Warrants | Recurring | Level 1 | |||
Liabilities: | |||
Warrant Liability | 658,260,000 | 62,928,000 | |
Private Placement Warrants | |||
Liabilities: | |||
Warrant Liability | 910,991,000 | $ 533,482,500 | 79,272,500 |
Private Placement Warrants | Recurring | Level 3 | |||
Liabilities: | |||
Warrant Liability | $ 910,991,000 | $ 79,272,500 |
FAIR VALUE MEASUREMENTS - Signi
FAIR VALUE MEASUREMENTS - Significant inputs (Details) - Churchill Capital Corp IV | Jun. 30, 2021$ / sharesY | Mar. 31, 2021Y$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020 | Dec. 31, 2020$ / shares | Dec. 31, 2020Y | Jul. 30, 2020$ / sharesY |
Exercise price | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 11.50 | 11.50 | 11.50 | 11.50 | |||
Stock price | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 28.82 | 23.18 | 10.01 | 9.80 | |||
Volatility | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 76.52 | 40 | 30 | 19.8 | |||
Probability of completing a Business Combination | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 95 | 90 | 80 | 80 | 80 | ||
Term | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | Y | 5.06 | 5.23 | 5.33 | 5.33 | |||
Risk-free rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 0.88 | 0.97 | 0.50 | 0.34 | |||
Dividend yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 0 | 0 | 0 | 0 |
FAIR VALUE MEASUREMENTS - Chang
FAIR VALUE MEASUREMENTS - Changes in the fair value of warrant liabilities (Details) - Churchill Capital Corp IV - USD ($) | 3 Months Ended | 8 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Beginning Balance | $ 17,174,038 | $ 142,200,500 | |
Initial measurement on July 30, 2020 | $ 83,422,000 | ||
Change in valuation inputs or other assumptions | 58,778,500 | ||
Ending Balance | 30,394,794 | 17,174,038 | 142,200,500 |
Public Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Beginning Balance | 62,928,000 | ||
Initial measurement on July 30, 2020 | 40,572,000 | ||
Change in valuation inputs or other assumptions | 22,356,000 | ||
Ending Balance | 62,928,000 | ||
Private Placement Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Beginning Balance | 533,482,500 | 79,272,500 | |
Initial measurement on July 30, 2020 | 42,850,000 | ||
Change in valuation inputs or other assumptions | 377,508,500 | 454,210,000 | 36,422,500 |
Ending Balance | $ 910,991,000 | $ 533,482,500 | $ 79,272,500 |
SUBSEQUENT EVENTS (Details)_2_3
SUBSEQUENT EVENTS (Details) | Feb. 22, 2021USD ($)D$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Jul. 23, 2021$ / shares | Feb. 20, 2021USD ($) | Jul. 30, 2020$ / shares | Dec. 31, 2019$ / shares |
Subsequent Event [Line Items] | ||||||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Churchill Capital Corp IV | ||||||||
Subsequent Event [Line Items] | ||||||||
Values of shares issued | $ 25,000 | $ 25,000 | ||||||
Fee payable to service provider upon the consummation of a Business Combination | $ 6,000,000 | |||||||
Fee payable to service provider upon consummation of the financing | 500,000 | |||||||
Threshold maximum out-of-pocket expenses | $ 125,000 | |||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | |||||||
Amounts borrowed | $ 300,000 | $ 1,500,000 | $ 550,000 | |||||
Convertible promissory note with Sponsor | Churchill Capital Corp IV | ||||||||
Subsequent Event [Line Items] | ||||||||
Maximum borrowing capacity of related party promissory note | 1,500,000 | |||||||
Maximum loans convertible into warrants | $ 1,500,000 | |||||||
Price of warrants (in dollars per share) | $ / shares | $ 1 | |||||||
Amounts borrowed | $ 1,500,000 | |||||||
Merger Agreement with Merger Sub and Atieva | Churchill Capital Corp IV | ||||||||
Subsequent Event [Line Items] | ||||||||
Consideration | $ 11,750,000,000 | |||||||
Number of business days prior to closing date considered for determination of Equity Value | 2 | |||||||
Class A Common Stock | ||||||||
Subsequent Event [Line Items] | ||||||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | |||||||
Class A Common Stock | Churchill Capital Corp IV | ||||||||
Subsequent Event [Line Items] | ||||||||
Par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Share price | $ / shares | $ 12 | $ 12 | ||||||
Class A Common Stock | Common Stock Subscription Agreements | PIPE Investors | Churchill Capital Corp IV | ||||||||
Subsequent Event [Line Items] | ||||||||
Values of shares issued | $ 2,500,000,000 | |||||||
Share price | $ / shares | $ 15 | |||||||
Class A Common Stock | Merger Agreement with Merger Sub and Atieva | Churchill Capital Corp IV | ||||||||
Subsequent Event [Line Items] | ||||||||
Par value (in dollars per share) | $ / shares | 0.0001 | |||||||
Merger consideration (in dollars per share) | $ / shares | $ 10 |
CONDENSED CONSOLIDATED BALANC_3
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 557,938,000 | $ 614,412,000 |
Prepaid expenses | 41,276,000 | 21,840,000 |
Total Current Assets | 682,444,000 | 662,556,000 |
TOTAL ASSETS | 1,736,144,000 | 1,402,681,000 |
Current liabilities | ||
Total Current Liabilities | 199,778,000 | 185,283,000 |
Total Liabilities | 368,531,000 | 227,382,000 |
Commitments and contingencies | ||
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | 5,836,785,000 | 2,494,076,000 |
Stockholders' Equity | ||
Common stock value | 1,000 | 1,000 |
Additional paid-in capital | 26,615,000 | 38,115,000 |
Accumulated deficit | (4,495,788,000) | (1,356,893,000) |
Total Stockholders' Equity | (4,469,172,000) | (1,318,777,000) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,736,144,000 | 1,402,681,000 |
Churchill Capital Corp IV | ||
Current assets | ||
Cash | 1,000,159 | 3,592,857 |
Prepaid expenses | 675,344 | 937,786 |
Total Current Assets | 1,675,503 | 4,530,643 |
Marketable securities held in Trust Account | 2,070,290,785 | 2,070,086,006 |
TOTAL ASSETS | 2,071,966,288 | 2,074,616,649 |
Current liabilities | ||
Accounts payable and accrued expenses | 827,213 | 1,446,951 |
Income taxes payable | 23,578 | 81,422 |
Convertible promissory note - related party, net of discount | 1,200,000 | |
Total Current Liabilities | 2,050,791 | 1,528,373 |
Derivative liabilities | 1,599,645,794 | 142,200,500 |
Deferred underwriting fee payable | 72,450,000 | 72,450,000 |
Total Liabilities | 1,674,146,585 | 216,178,873 |
Commitments and contingencies | ||
Class A common stock subject to possible redemption, 207,000,000 and 185,343,777 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | 2,070,000,000 | 1,853,437,770 |
Stockholders' Equity | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | ||
Additional paid-in capital | 68,460,540 | |
Accumulated deficit | (1,672,185,472) | (63,467,875) |
Total Stockholders' Equity | (1,672,180,297) | 5,000,006 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,071,966,288 | 2,074,616,649 |
Class A Common Stock | Churchill Capital Corp IV | ||
Stockholders' Equity | ||
Common stock value | 2,166 | |
Total Stockholders' Equity | 0 | 2,166 |
Class B Common Stock | Churchill Capital Corp IV | ||
Stockholders' Equity | ||
Common stock value | 5,175 | 5,175 |
Total Stockholders' Equity | $ 5,175 | $ 5,175 |
CONDENSED CONSOLIDATED BALANC_4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Temporary Equity, Shares Outstanding | 437,182,072 | 362,011,991 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares, Issued | 13,917,981 | 10,889,451 |
Common Stock, Shares, Outstanding | 13,917,981 | 10,889,451 |
Churchill Capital Corp IV | ||
Temporary Equity, Shares Outstanding | 185,343,777 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A Common Stock | Churchill Capital Corp IV | ||
Temporary Equity, Shares Outstanding | 207,000,000 | 185,343,777 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 |
Common Stock, Shares, Issued | 0 | 21,656,223 |
Common Stock, Shares, Outstanding | 0 | 21,656,223 |
Class B Common Stock | Churchill Capital Corp IV | ||
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 51,750,000 | 51,750,000 |
Common Stock, Shares, Outstanding | 51,750,000 | 51,750,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating costs | $ 249,074,000 | $ 113,479,000 | $ 548,095,000 | $ 237,483,000 | $ 600,133,000 | $ 258,598,000 | ||||
Loss from operations | (248,919,000) | (113,420,000) | (547,712,000) | (237,416,000) | (599,227,000) | (257,934,000) | ||||
Other income (expense): | ||||||||||
Change in fair value of derivative liabilities | (57,000) | (6,976,000) | (114,000) | (1,205,000) | (406,000) | |||||
Interest expense - amortization of debt discount | (30,000) | (1,000) | (35,000) | (10,000) | (64,000) | (8,547,000) | ||||
Other expense net | (12,802,000) | (3,893,000) | (461,957,000) | (9,552,000) | (120,341,000) | (19,400,000) | ||||
Loss before provision for income taxes | (261,721,000) | (117,313,000) | (1,009,669,000) | (246,968,000) | (719,568,000) | (277,334,000) | ||||
Provision for income taxes | (5,000) | 28,000 | (9,000) | 100,000 | 188,000 | (23,000) | ||||
Net loss | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 | ||||
Basic and diluted net loss per share, Non-redeemable common stock | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) | ||||
Churchill Capital Corp IV | ||||||||||
Operating costs | $ 1,000 | $ 562,194 | $ 3,652,018 | $ 2,976,423 | ||||||
Loss from operations | (1,000) | (562,194) | (3,652,018) | (2,976,423) | ||||||
Other income (expense): | ||||||||||
Change in fair value of derivative liabilities | (587,379,256) | $ (51,980,500) | (1,399,753,658) | (58,778,500) | ||||||
Interest expense - excess fair value of conversion liability | (56,191,636) | |||||||||
Interest expense - amortization of debt discount | (900,000) | (1,200,000) | ||||||||
Interest earned on marketable securities held in Trust Account | 27,453 | 204,779 | 531,361 | |||||||
Unrealized gain on marketable securities held in Trust Account | (3,956) | 4,645 | ||||||||
Other expense net | (588,255,759) | (1,456,940,515) | (60,410,030) | |||||||
Loss before provision for income taxes | (1,000) | (588,817,953) | (1,460,592,533) | (63,386,453) | ||||||
Provision for income taxes | (1,962) | (25,540) | (81,422) | |||||||
Net loss | $ (1,000) | $ (588,819,915) | $ (54,303,650) | $ (54,304,650) | $ (1,460,618,073) | $ (63,467,875) | ||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to redemption | 207,000,000 | 191,473,711 | 191,473,711 | 201,682,674 | 188,268,610 | |||||
Basic and diluted net income per share, Class A common stock subject to redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 45,000,000 | 51,750,000 | 59,043,747 | 54,862,784 | 58,496,884 | 62,139,949 | ||||
Basic and diluted net loss per share, Non-redeemable common stock | $ 0 | $ (11.38) | $ (0.92) | $ (0.99) | $ (24.97) | $ (1.02) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Additional Paid in CapitalChurchill Capital Corp IV | Additional Paid in Capital | Accumulated DeficitChurchill Capital Corp IV | Accumulated Deficit | Churchill Capital Corp IVClass A Common Stock | Churchill Capital Corp IVClass B Common Stock | Churchill Capital Corp IV | Total |
Balance at Dec. 31, 2019 | $ 16,432,000 | $ (637,513,000) | $ (621,080,000) | |||||
Balance at Dec. 31, 2020 | $ 68,460,540 | 38,115,000 | $ (63,467,875) | (1,356,893,000) | $ 2,166 | $ 5,175 | $ 5,000,006 | (1,318,777,000) |
Balance (in shares) at Dec. 31, 2020 | 21,656,223 | 51,750,000 | ||||||
Balance at Apr. 29, 2020 | 0 | 0 | $ 0 | $ 0 | 0 | |||
Balance (in shares) at Apr. 29, 2020 | 0 | 0 | ||||||
Issuance of Class B common stock to Sponsor | 19,825 | $ 5,175 | 25,000 | |||||
Issuance of Class B common stock to Sponsor (in shares) | 51,750,000 | |||||||
Net loss | (1,000) | (1,000) | ||||||
Balance at Jun. 30, 2020 | 19,825 | 18,736,000 | (1,000) | (884,381,000) | $ 0 | $ 5,175 | 24,000 | (865,644,000) |
Balance (in shares) at Jun. 30, 2020 | 0 | 51,750,000 | ||||||
Balance at Apr. 29, 2020 | 0 | 0 | $ 0 | $ 0 | 0 | |||
Balance (in shares) at Apr. 29, 2020 | 0 | 0 | ||||||
Change in value of common stock subject to possible redemption | (1,853,419,236) | (1,853,437,770) | ||||||
Issuance of Class B common stock to Sponsor | 19,825 | 25,000 | ||||||
Balance at Dec. 31, 2020 | 68,460,540 | 38,115,000 | (63,467,875) | (1,356,893,000) | $ 2,166 | $ 5,175 | 5,000,006 | (1,318,777,000) |
Balance (in shares) at Dec. 31, 2020 | 21,656,223 | 51,750,000 | ||||||
Change in value of common stock subject to possible redemption | (68,460,540) | (148,099,524) | $ (2,166) | (216,562,230) | ||||
Change in value of common stock subject to possible redemption (in shares) | (21,656,223) | |||||||
Net loss | 0 | (871,798,158) | $ 0 | $ 0 | (871,798,158) | |||
Balance at Mar. 31, 2021 | 0 | 6,198,000 | (1,083,365,557) | (4,234,062,000) | $ 0 | $ 5,175 | (1,083,360,382) | (4,227,863,000) |
Balance (in shares) at Mar. 31, 2021 | 0 | 51,750,000 | ||||||
Change in value of common stock subject to possible redemption | 0 | 0 | $ 0 | $ 0 | 0 | |||
Change in value of common stock subject to possible redemption (in shares) | 0 | 0 | ||||||
Net loss | $ 0 | (588,819,915) | $ 0 | $ 0 | (588,819,915) | |||
Balance at Jun. 30, 2021 | $ 26,615,000 | $ (1,672,185,472) | $ (4,495,788,000) | $ 0 | $ 5,175 | $ (1,672,180,297) | $ (4,469,172,000) | |
Balance (in shares) at Jun. 30, 2021 | 0 | 51,750,000 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 2 Months Ended | 6 Months Ended | 8 Months Ended |
Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||
Net loss | $ (1,009,678,000) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Changes in fair value of derivative liabilities | 6,976,000 | ||
Amortization of debt discount | 2,747,000 | ||
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | (11,233,000) | ||
Net cash used in operating activities | (453,804,000) | ||
Cash Flows from Financing Activities: | |||
Net cash provided by used in financing activities | 612,105,000 | ||
Cash - Beginning of period | 614,412,000 | ||
Cash - End of period | $ 293,896,000 | 557,938,000 | $ 614,412,000 |
Churchill Capital Corp IV | |||
Cash Flows from Operating Activities: | |||
Net loss | (1,000) | (1,460,618,073) | (63,467,875) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Changes in fair value of derivative liabilities | 1,399,753,658 | 58,778,500 | |
Interest expense - excess fair value of conversion liability | 56,191,636 | ||
Amortization of debt discount | 1,200,000 | ||
Interest earned on marketable securities held in Trust Account | (204,779) | (531,361) | |
Changes in operating assets and liabilities: | |||
Prepaid expenses and other current assets | 262,442 | (937,786) | |
Accounts payable and accrued expenses | 1,000 | (619,738) | 1,446,951 |
Income taxes payable | (57,844) | 81,422 | |
Net cash used in operating activities | (4,092,698) | (2,467,258) | |
Cash Flows from Financing Activities: | |||
Proceeds from issuance of Class B common stock to Sponsor | 25,000 | 25,000 | |
Proceeds from promissory note - related party | 300,000 | 1,500,000 | 550,000 |
Payment of convertible promissory note - related party | (152,900) | (550,000) | |
Net cash provided by used in financing activities | 172,100 | 1,500,000 | 2,075,610,115 |
Net Change in Cash | 172,100 | (2,592,698) | |
Cash - Beginning of period | 0 | 3,592,857 | 0 |
Cash - End of period | 172,100 | 1,000,159 | 3,592,857 |
Non-Cash investing and financing activities: | |||
Offering costs included in accrued offering costs | $ 58,000 | ||
Change in value of Class A common stock subject to possible redemption | 216,562,230 | $ (61,299,340) | |
Initial classification of conversion option liability | $ 57,691,636 |
DESCRIPTION OF ORGANIZATION A_3
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1 DESCRIPTION OF BUSINESS Overview Atieva, Inc. and its wholly owned subsidiaries (collectively, “Lucid,” the “Company,” “we,” “us” or “our”) is a technology and automotive company. The Company was founded in Silicon Valley in 2007 to develop the next generation of electric vehicle (“ EV On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. Upon the completion of the merger on July 23, 2021 (the "Closing"), the Company changed its name to Lucid Group, Inc. ("Lucid Group") and effectively comprised all of CCIV’s material operations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through June 30, 2021, the Company has incurred operating losses and negative cash flows from operating activities. For the six months ended June 30, 2021 and 2020, the Company has incurred operating losses, including net losses of $1.0 billion and $246.9 million, respectively. The Company has an accumulated deficit of $4.5 billion as of June 30, 2021. As of the end of June 30, 2021, the Company completed the first phase of the construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin commercial production of its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources are not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these condensed consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares. Upon the completion of the merger with CCIV, the Company received approximately an incremental $2.1 billion in cash from CCIV. In addition, the Company received $2.5 billion in Private Investment in Public Entity ("PIPE") investment. As such, this business combination eliminated the substantial doubt about the Company's ability to continue as a going concern within one year after the date the Current Report on Form 8-K/A to which this document forms an exhibit is available to be filed. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high-technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. | NOTE 1 — Overview The precursor of Atieva, Inc. (DBA Lucid Motors) was originally incorporated in the state of Delaware in December 2007 (“Atieva Delaware”). Atieva Delaware designed, developed, and built energy storage systems for electric vehicles and supplied automakers with the battery pack system needed to power hybrid, plug-in, and electric vehicles. In December 2009, Atieva Delaware and a newly incorporated Cayman Islands company (“Atieva Cayman”) entered into a share exchange agreement (the “Share Exchange Agreement”). Under the Share Exchange Agreement, (a) each holder of Atieva Delaware common shares exchanged such shares for shares of Atieva Cayman’s par value $0.0001 common shares (the “Common Shares”) on a one-for-one basis, and (b) each holder of Atieva Delaware Series A shares exchanged such shares for Atieva Cayman Series A shares on a one-for-one basis. Upon completion of the share exchange, Atieva Delaware was renamed as Atieva USA, Inc. with Atieva Cayman retaining the name of Atieva, Inc. Subsequent to the share exchange transaction, Atieva Delaware distributed 100% of its wholly owned subsidiaries in Hong Kong and Shanghai, China (“Atieva Hong Kong” and “Atieva Shanghai,” respectively) to Atieva Cayman in December 2010. In addition, Atieva Delaware registered a branch office in Taiwan in May 2008. In 2014, Atieva Cayman and its subsidiaries (the “Company” or “our”) changed its business model to focus on the design and development of high-performance fully electric vehicles and advanced electric vehicle powertrain components. As part of the build-out of the Company’s retail stores and service centers for distribution of vehicles to customers, the Company changed Atieva Delaware’s legal name to Lucid USA, Inc., and incorporated new subsidiaries in the U.S. and Canada, including Lucid Group USA, Inc., a Delaware corporation in August 2020, and Lucid Motors Canada ULC, a British Columbia unlimited liability company and an indirect, wholly-owned subsidiary of Lucid Group USA, Inc. in December 2020. The Company is headquartered in Newark, California and has various other global office locations. Liquidity and Going Concern The Company devotes its efforts to business planning, research and development, recruiting of management and technical staff, acquiring operating assets, and raising capital. From inception through December 31, 2020, the Company has incurred operating losses and negative cash flows from operating activities. For the years ended December 31, 2020 and 2019, the Company has incurred operating losses, including net losses of $719.4 million and $277.4 million, respectively. The Company has an accumulated deficit of $1.4 billion as of December 31, 2020. As of the end of 2020, the Company was finalizing construction of its newly built manufacturing plant in Casa Grande, Arizona (the “Arizona plant”). The Company plans to begin selling its first vehicle, the Lucid Air, in the second half of 2021, along with the continued expansion of the Arizona plant and build-out of a network of retail sales and service locations. The Company has plans for continued development of additional vehicle model types for future release. The aforementioned activities will require considerable capital, above and beyond the expected cash inflows from the initial sales of the Lucid Air. As such, the future operating plan involves considerable risk if secure funding sources were not identified and confirmed. The Company’s existing sources of liquidity include cash and cash equivalents. Historically, the Company has been able to obtain debt and equity financing as disclosed in these consolidated financial statements. The Company has funded operations primarily with issuances of convertible preferred shares, convertible notes, long-term debt and net proceeds from revenues. As discussed in Note 15 — Subsequent Events, on February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE: CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement with the Company for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. Upon completion of the merger, the Company expects to receive a minimum of $2.8 billion of incremental cash from a combination of cash at CCIV and a “Private Investor in Public Entity” (PIPE) investment. Certain Significant Risks and Uncertainties The Company’s current business activities consist of research and development efforts to design and develop a high-performance fully electric vehicle and advanced electric vehicle powertrain components, including battery pack systems; building of the Company’s production operations in Casa Grande, Arizona; and build-out of the Company’s retail stores and service centers for distribution of the vehicles to customers. The Company is subject to the risks associated with such activities, including the need to further develop its technology, its marketing, and distribution channels; further develop its supply chain and manufacturing; and hire additional management and other key personnel. Successful completion of the Company’s development program and, ultimately, the attainment of profitable operations are dependent upon future events, including its ability to access potential markets, and secure long-term financing. The Company participates in a dynamic high technology industry. Changes in any of the following areas could have a material adverse impact on the Company’s future financial position, results of operations, and/or cash flows: advances and trends in new technologies; competitive pressures; changes in the overall demand for its products and services; acceptance of the Company’s products and services; litigation or claims against the Company based on intellectual property, patent, regulatory, or other factors; and the Company’s ability to attract and retain employees necessary to support its growth. In late 2019, a novel strain of coronavirus (COVID-19) began to affect the population of China and expanded into a worldwide pandemic during 2020, leading to significant business and supply chain disruption, as well as broad-based changes in supply and demand. The Company’s operations have experienced disruptions, such as temporary closure of its offices, and those of its customers and suppliers, and product research and development. The Company was able to proceed with the construction of the Arizona plant while still meeting all COVID-19 restrictions and required safety measures. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the outbreak. Nevertheless, COVID-19 presents a material uncertainty and risk with respect to the Company, its performance, and its financial results and could adversely affect the Company’s financial position and results of operations. | |
Churchill Capital Corp IV | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | LUCID GROUP, INC. (successor to Churchill Capital Corp IV) NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2021 (Unaudited) NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Churchill Capital Corp IV (formerly known as Annetta Acquisition Corp) (the “Company”) was incorporated in Delaware on April 30, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has one subsidiary, Air Merger Sub, Inc., a direct, wholly-owned subsidiary of the Company incorporated in Delaware on February 19, 2021 (“Merger Sub”) (see Note 6). As of June 30, 2021, the Company had not commenced any operations. All activity for the period from April 30, 2020 (inception) through June 30, 2021 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), identifying a target company for a Business Combination, and activities in connection with the proposed acquisition of Atieva, Inc., d/b/a Lucid Motors, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Lucid”) (see Note 6). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The registration statements for the Company’s Initial Public Offering were declared effective on July 29, 2020. On August 3, 2020, the Company consummated the Initial Public Offering of 207,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriters of the over-allotment option to purchase an additional 27,000,000 Units, at $10.00 per Unit, generating gross proceeds of $2,070,000,000, which is described in Note 3. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 42,850,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Churchill Sponsor IV LLC, (the “Sponsor”), generating gross proceeds of $42,850,000 which is described in Note 4. Transaction costs amounted to $109,714,885, consisting of $36,403,600 of underwriting fees, $72,450,000 of deferred underwriting fees and $861,285 of other offering costs. Following the closing of the Initial Public Offering on August 3, 2020, an amount of $2,070,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination or (ii) the distribution of the Trust Account, as described below, except that interest earned on the Trust Account can be released to the Company to fund working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its tax obligations. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company’s initial Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (excluding taxes payable on interest income earned from the Trust Account and the deferred underwriting commissions) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then on deposit in the Trust Account (initially $10.00 per Public Share, plus any pro rata interest, net of amounts withdrawn for working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its taxes (“permitted withdrawals”)). The per-share amount to be distributed to public stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 7). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company’s Sponsor and its permitted transferees will agree to vote their Founder Shares (as defined in Note 6) and any Public Shares acquired during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, public stockholders may elect to redeem their Public Shares irrespective of whether they vote for or against the Business Combination. If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company. The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and the Public Shares held by it in connection with the completion of a Business Combination, (b) to waive its rights to liquidating distributions from the Trust Account with respect to its Founder Shares if the Company fails to consummate a Business Combination within the Combination Window (as defined below) and (c) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with the opportunity to redeem their shares in conjunction with any such amendment. If the Company is unable to complete a Business Combination by August 3, 2022 (or November 3, 2022 if the Company has an executed letter of intent, agreement in principle or definitive agreement for a Business Combination by August 3, 2022) (the “Combination Window”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten The Sponsor has agreed to waive its right to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Window. However, if the Sponsor acquires Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Window and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the funds on deposit in the Trust Account remaining available for distribution will be less than the Initial Public Offering price per Unit of $10.00 in the Initial Public Offering. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement, reduce the amount of funds on deposit in the Trust Account to below (i) $10.00 per Public Share or (ii) the amount per Public Share held in the Trust Account as of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of permitted withdrawals. This liability will not apply with respect to any claims by a third party that executed a waiver of any and all rights to seek access to the Trust Account or to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Liquidity The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public Offering and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of June 30, 2021, approximately $290,785 of the amount on deposit in the Trust Account represented interest income, which is available to pay the Company's tax obligations and for permitted withdrawals. Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. The Company may need to raise additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. The Company's officers, directors and Sponsor may, but are not obligated to, loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company's working capital needs. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. The Company believes it will have sufficient cash to meet its needs for a reasonable period of time, which is considered to be one year from the issuance date of the condensed consolidated financial statements. | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Churchill Capital Corp IV (formerly known as Annetta Acquisition Corp) (the “Company”) was incorporated in Delaware on April 30, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has one subsidiary, Air Merger Sub, Inc., a direct, wholly owned subsidiary of the Company incorporated in Delaware on February 19, 2021 (“Merger Sub”) (see Note 12). As of December 31, 2020, the Company had not commenced any operations. All activity for the period from April 30, 2020 (inception) through December 31, 2020 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), identifying a target company for a Business Combination, and activities in connection with the proposed acquisition of Atieva, Inc., d/b/a Lucid Motors, an exempted company incorporated with limited liability under the laws of the Cayman Islands (“Atieva”) (see Note 12). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The registration statements for the Company’s Initial Public Offering were declared effective on July 29, 2020. On August 3, 2020, the Company consummated the Initial Public Offering of 207,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriters of the over-allotment option to purchase an additional 27,000,000 Units, at $10.00 per Unit, generating gross proceeds of $2,070,000,000, which is described in Note 4. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 42,850,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Churchill Sponsor IV LLC, (the “Sponsor”), generating gross proceeds of $42,850,000 which is described in Note 5. Transaction costs amounted to $109,714,885, consisting of $36,403,600 of underwriting fees, $72,450,000 of deferred underwriting fees and $861,285 of other offering costs. Following the closing of the Initial Public Offering on August 3, 2020, an amount of $2,070,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination or (ii) the distribution of the Trust Account, as described below, except that interest earned on the Trust Account can be released to the Company to fund working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its tax obligations. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company’s initial Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (excluding taxes payable on interest income earned from the Trust Account and the deferred underwriting commissions) at the time of the agreement to enter into the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially $10.00 per Public Share, plus any pro rata interest, net of amounts withdrawn for working capital requirements, subject to an annual limit of $1,000,000 and/or to pay its taxes (“permitted withdrawals”)). The per-share amount to be distributed to public stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 7). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company’s Sponsor and its permitted transferees will agree to vote their Founder Shares (as defined in Note 6) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company. The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and Public Shares held by it in connection with the completion of a Business Combination, (b) to waive its rights to liquidating distributions from the Trust Account with respect to its Founder Shares if the Company fails to consummate a Business Combination within the Combination Window (as defined below) and (c) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with the opportunity to redeem their shares in conjunction with any such amendment. If the Company is unable to complete a Business Combination by August 3, 2022 (or November 3, 2022 if the Company has an executed letter of intent, agreement in principle or definitive agreement for a Business Combination by August 3, 2022) (the “Combination Window”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest (net of permitted withdrawals and up to $100,000 to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Window. The Sponsor has agreed to waive its right to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Window. However, if the Sponsor acquires Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Window. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Window and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement, reduce the amount of funds in the Trust Account to below (i) $10.00 per Public Share or (ii) the amount per Public Share held in the Trust Account as of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, in each case net of permitted withdrawals. This liability will not apply with respect to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account or to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Risks and Uncertainties Management continues to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Liquidity The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its shareholders prior to the Initial Public Offering and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. As of December 31, 2020, the Company had $3,592,857 in its operating bank accounts, $2,070,086,006 in securities held in the Trust Account to be used for a Business Combination or to repurchase or redeem its common stock in connection therewith and working capital of $3,218,168 . As of December 31, 2020, approximately $86,000 of the amount on deposit in the Trust Account represented interest income, which is available to pay the Company's tax obligations. Based on the foregoing, the Company believes it will have sufficient cash to meet its needs for a reasonable period of time, which is considered to be one year from the issuance date of the financial statements. On February 22, 2021, the Company entered into a convertible promissory note with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $1,500,000 (see Note 12) . |
SUMMARY OF SIGNIFICANT ACCOU_21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash in the other current assets is comprised primarily of customer reservation payments for electric vehicles and other escrow deposit for building of the Arizona plant. Restricted cash included in other non-current assets is primarily related to letters of credit issued to the landlord for the Company’s headquarter in Newark, California and retail locations, and escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): June 30, December 31, June 30, 2021 2020 2020 Cash $ 557,938 $ 614,412 $ 293,896 Restricted cash included in other current assets 10,989 11,278 18,456 Restricted cash included in other noncurrent assets 23,278 14,728 8,200 Total cash and restricted cash $ 592,205 $ 640,418 $ 320,552 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. Other Significant Accounting Policies As of June 30, 2021, there were no material changes in the other significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of and for the years ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1 filed with SEC on August 2, 2021. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. Segment Reporting Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s CODM is its Chief Executive Officer. The Company has determined that it operates in one operating segment and one reportable segment, as the CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with an original or remaining maturity at the date of purchase of three months or less to be cash equivalents. The Company has restricted cash in current assets of $11.3 million and $19.8 million as of December 31, 2020 and 2019, respectively, consisting of customer reservation payments for electric vehicles of $0.5 million and $0.3 million and the escrow deposit for building of the Arizona plant of $ 10.8 million and $19.5 million as of December 31, 2020 and 2019, respectively. As of December 31, 2020 and 2019, the Company has $14.7 million and $8.2 million, respectively, held in long-term restricted cash consisting of $5.0 million and $5.0 million, respectively, for the letter of credit required by the landlord for the headquarter facility in Newark, California, $8.0 million and $1.5 million, respectively, in letter of credit required by the landlord for the retail locations, and $1.7 million and $1.7 million, respectively, in escrow deposit required under the escrow agreement for the lease with Pinal county, Arizona, related to the Arizona plant. The following table provides a reconciliation of cash and restricted cash to amounts shown in the statements of cash flows (in thousands): December 31, 2020 2019 Cash $ 614,412 $ 351,684 Restricted cash, current portion 11,278 19,767 Restricted cash, less current portion 14,728 8,200 Total cash and restricted cash $ 640,418 $ 379,651 Accounts Receivable Accounts receivable consist of current trade receivables from a single customer. The Company records accounts receivable at their net realizable value. Management’s estimate for expected credit losses for outstanding accounts receivable are based on historical write-off experience, an analysis of the aging of outstanding receivables, customer payment patterns, and the establishment of specific reserves for customers in an adverse financial condition. Adjustments are made based upon the Company’s expectations of changes in macroeconomic conditions that may impact the collectability of outstanding receivables. The Company also considers current market conditions and reasonable and supportable forecasts of future economic conditions to inform adjustments to historical loss data. The Company reassesses the adequacy of estimated credit losses each reporting period. At December 31, 2020 and 2019, the Company did not record an allowance for doubtful accounts. Short-Term Investments Investments with original or remaining maturities of more than three months at the time of purchase are generally classified as short-term investments and consist of time deposits. The Company’s short-term investments consist of certificates of deposit totaling $0.5 million as of December 31, 2020 and 2019. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. Property, Plant, and Equipment Property, plant, and equipment are stated at cost, less accumulated depreciation and amortization for leasehold improvements. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets. The Company generally uses the following estimated useful lives for each asset category: Asset Category Life (years) Machinery 5 Computer equipment and software 3 Furniture and fixtures 5 Capital leases 3 Leasehold improvements Shorter of the lease term and the estimated useful lives of the assets Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements that increase functionality of the asset are capitalized and depreciated ratably over the identified useful life. Upon disposition or retirement of property and equipment, the related cost and accumulated depreciation and amortization are removed, and any gain or loss is reflected in operations. The Company recorded a disposition loss on fixed assets of $0.1 million for the year ended December 31, 2020 and an immaterial loss for the year ended December 31, 2019. Inventory Inventory, consisting of raw materials, work in progress and finished goods is stated at the lower of cost or net realizable value. Costs are computed under the standard cost method, which approximates actual costs determined on a first-in, first-out basis. Net realizable value is determined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of disposal and transportation. The cost basis of the Company’s inventory is reduced for any products that are considered to be held in excess of demand or obsolete based upon assumptions about future demand and market conditions. The Company also reviews the status of the inventory periodically to determine whether a lower of cost or net realizable value analysis needs to be performed based on market pricing. The Company’s inventory is associated with battery pack system projects with its customer and consists of the following (in thousands): December 31, 2020 2019 Raw materials $ 661 $ 205 Work in progress 70 51 Finished goods 312 428 Total inventory $ 1,043 $ 684 The Company did not adjust the cost basis of its inventory as of December 31, 2020 and 2019. Impairment of Long-Lived Assets Long-lived assets, such as property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for potential impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for the years ended December 31, 2020 and 2019. Foreign Currency The US dollar is the functional currency of the Company’s consolidated subsidiaries operating outside of the US. Monetary assets and liabilities of these subsidiaries are remeasured into US dollars from the local currency at rates in effect at period-end and nonmonetary assets and liabilities are remeasured at historical rates. Expenses incurred in currencies other than the US dollar (the functional currency) are remeasured at average exchange rates in effect during each period. Foreign currency gains and losses from remeasurement are included within other income (expense) — net in the Company’s consolidated statements of operations, and the Company recorded a foreign currency loss of $2.5 million for the year ended December 31, 2020 mainly due to the currency fluctuations of Euro, Japanese yen, and South Korean won, and an immaterial loss for the year ended December 31, 2019. Revenue from Contracts with Customers On January 1, 2019 the Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method which did not result in an adjustment upon adoption. The Company follows a five-step process in which the Company identifies the contract, identifies the related performance obligations, determines the transaction price, allocates the contract transaction price to the identified performance obligations, and recognizes revenue when (or as) the performance obligations are transferred to the customer. The Company’s revenue consists of the sales of battery pack systems, supplies and related services for vehicles. The Company identifies the sale of battery pack systems and the related supplies as a performance obligation to be recognized at the point in time when control is transferred to the customer. Control transfers to the customer when the product is delivered to the customer as the customer can then direct the use and obtain substantially all of the remaining benefits from the asset at that point in time. Shipping and handling provided by Company is considered a fulfillment activity. While customers generally have the right to return defective or non-conforming products, past experience has demonstrated that product returns have been immaterial. Customer remedies may include either a cash refund or an exchange of the returned product. As a result, the right of return and related refund liability for non-conforming or defective goods is estimated and recorded as a reduction in revenue, if necessary. Payment for the products sold are made upon invoice or in accordance with payment terms customary to the business. The Company’s contracts do not contain significant financing components. Customer contracts generally do not include more than one performance obligation. If a contract were to contain more than one performance obligation, the Company shall allocate the contract’s transaction price to each performance obligation based on its relative standalone selling price. The standalone selling price for each distinct good is generally determined by directly observable data. The Company does not have any remaining performance obligations or contract assets and liabilities as of December 31, 2020 and 2019. Cost of Revenue Cost of revenue includes direct parts, material and labor costs, manufacturing overhead, including amortized tooling costs, shipping and logistic costs, and reserves for estimated warranty expenses related to its battery packs. Cost of revenue also includes adjustments to warranty expense and charges to write down the carrying value of inventory when it exceeds its estimated net realizable value or to provide for obsolete and on-hand inventory in excess of forecasted demand. Warranties The Company provides a manufacturer’s warranty on all battery packs it sells and accrues a warranty reserve for such battery packs, as applicable. These estimates are based on actual claims incurred to date and an estimate of the nature, frequency and costs of future claims. Current estimates of the warranty reserve are immaterial, but changes to the Company’s historical or projected warranty experience may cause material changes to the warranty reserve in the future. The portion of the warranty reserve expected to be incurred within the next 12 months is included within accrued liabilities and other, while the remaining balance is included within other long-term liabilities in the consolidated balance sheets. The Company recorded warranty expense of zero and $0.1 million as a component of cost of revenue in the consolidated statements of operations for the years ended December 31, 2020 and 2019, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. Share-Based Compensation Share-based compensation expense related to share-based awards granted to employees is measured and recognized in the Company’s consolidated financial statements based on fair value. Share-based compensation expense, net of estimated forfeitures, is recognized on a straight-line basis over the requisite service period for each employee share option expected to vest. The fair value of each share option granted to employees and nonemployees is estimated on the grant date using the Black-Scholes option-pricing model. For nonemployee share options, the fair value is remeasured as the share options vest, and the resulting change in fair value, if any, is recognized in the consolidated statements of operations during the period the related services are rendered. Comprehensive Income (Loss) Comprehensive loss is composed of two components: net loss and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains, and losses that under US GAAP are recorded as an element of shareholders’ equity (deficit) but are excluded from net loss. For the years ended December 31, 2020 and 2019, as there are no activities that impacted comprehensive income (loss), there are no differences between comprehensive loss and net loss reported in the Company’s consolidated statements of operations. Research and Development Research and development expenses consist primarily of personnel-related expenses, contractor fees, engineering design and testing expenses, and allocated facilities cost. Substantially all of the Company’s research and development expenses are related to developing new products and services and improving existing products and services. Research and development expenses have been expensed as incurred and included in the consolidated statements of operations. Selling, General, and Administrative Selling, general and administrative expense consist of personnel and facilities costs related to marketing, sales, finance, human resources, information technology, and legal departments. Advertising Advertising is expensed as incurred and is included in sales and marketing expenses in the consolidated statements of operations. These costs were immaterial for the years ended December 31, 2020 and 2019, respectively. Leases An arrangement is or contains a lease if there are specified assets and the right to control the use of a specified asset is conveyed for a period in exchange for consideration. Upon lease inception, the Company classifies leases as either operating or capital leases. Leases are classified as capital leases when the terms of the lease transfers substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating leases are not recognized on the consolidated balance sheets. For capital leases, the Company recognizes capital lease assets and corresponding lease liabilities within the consolidated balance sheets at lease commencement at the present value of the rental payments. The Company recognizes rent expense on a straight-line basis in the statements of operations for operating leases. For capital leases, the Company recognizes interest expense associated with the capital lease liability and depreciation expense associated with the capital lease asset. For capital lease assets and leasehold improvements, the estimated useful lives are limited to the shorter of the useful life of the asset or the term of the lease. The Company enters into operating and capital leases associated with its office space, manufacturing and retail facilities, and equipment. On certain of its operating lease agreements, the Company may receive rent holidays and other incentives, which are recognized over the lease term through rent expense. The difference between rent expense and the cash paid under the lease agreement is recorded as deferred rent. Lease incentives, including tenant improvement allowances, are also recorded as deferred rent and amortized on a straight-line basis over the lease term. The Company recorded deferred rent under other short-term and long-term liabilities in the consolidated balance sheets as of December 31, 2020 and 2019. If the term of the lease does not exceed 12 months, the Company elects to record the rental expense in the period it is incurred, and no deferred rent will be recorded. Commitments and Contingencies Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount within a range of loss can be reasonably estimated. When no amount within the range is a better estimate than any other amount, the Company accrues for the minimum amount within the range. Legal costs incurred in connection with loss contingencies are expensed as incurred. Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance outlines a comprehensive model for entities to use in accounting for leases and supersedes most current lease accounting guidance, including industry-specific guidance. The core principle of the new lease accounting model is that lessees are required, among other things, to recognize lease assets and lease liabilities in the consolidated balance sheets for those leases classified as operating leases under previous authoritative guidance. The guidance also introduces new disclosure requirements for leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Leases (Topic 842), Codification Improvements to Topic 842, Leases, and ASU No. 2018-11, Leases (Topic 842), Targeted Improvements. ASU No. 2018-11 provides a new transition method in which an entity can initially apply the new lease standards at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. These standards will be effective for the Company for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022 and early adoption is permitted. The Company will apply the new transition method prescribed by ASU No. 2018-11 at the adoption date. The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for recognizing deferred taxes for investments, performing intra period allocation, and calculating income taxes in interim periods. The ASU also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The guidance is effective for the Company beginning in the first quarter of fiscal year 2022, with early adoption permitted. The Company expects the new guidance will have an immaterial impact on its consolidated financial statements and intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2022. In August 2020, the FASB issued ASU No. 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments, and amends existing earnings-per-share, or EPS, guidance by requiring that an entity use the if-converted method when calculating diluted EPS for convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, with early adoption permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We plan to adopt ASU 2020-06 effective January 1, 2022 and are currently evaluating the effect ASU 2020-06 will have on our consolidated financial statements and related disclosures. | |
Churchill Capital Corp IV | |||
Financing Receivable, Impaired [Line Items] | |||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the SEC on May 14, 2021. The interim results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement under the Securities Act declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2021 and December 31, 2020. Marketable Securities Held in Trust Account At June 30, 2021 and December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. From inception to June 30, 2021, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes, of which no amounts were withdrawn during the three and six months ended June 30, 2021. Convertible Debt The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. The Company reviews the terms of convertible debt issued to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense. Derivative Liabilities The Company accounts for debt and equity issuances as either equity-classified or liability-classified instruments based on an assessment of the instruments specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the instruments are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common stock and whether the holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of issuance of the instruments and as of each subsequent quarterly period end date while the instruments are outstanding. For issued or modified instruments that meet all of the criteria for equity classification, the instruments are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified instruments that do not meet all the criteria for equity classification, the instruments are required to be recorded as a derivative liability at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the instruments are recognized as a non-cash gain or loss on the condensed consolidated statements of operations. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the issuer’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in capital and accumulated deficit. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. As of June 30, 2021 and December 31, 2020, the Company had a deferred tax asset of approximately $1,342,000 and $594,000 ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statements recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three and six months ended June 30, 2021, the Company recorded $1,962 of income tax expense. The Company’s effective tax rate for the three and six months ended June 30, 2021 was approximately 0%, which differs from the expected income tax rate primarily due to the permanent differences associated with the change in the fair value of the derivative liabilities and start-up costs (discussed above) which are not currently deductible. Net income (Loss) per Share Net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering and private placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the inclusion of such warrants would be anti-dilutive. The Company’s statements of operations include a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable common stock is calculated by dividing the net income (loss), adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable common stock outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): For the Period From April 30, 2020 Three Months Six Months (inception) Ended Ended through June 30, June 30, June 30, 2021 2021 2020 Class A common stock subject to possible redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 27,453 $ 204,779 $ — Unrealized gain on investments held in Trust Account (3,956) — — Less: Company’s portion available to be withdrawn to pay taxes (23,497) (129,310) — Less: Company’s portion available to be withdrawn for working capital purposes — (75,469) — Net income allocable to Class A common stock subject to possible redemption $ — $ — $ — Denominator: Weighted Average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 207,000,000 201,682,674 — Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 $ 0.00 $ 0.00 Non-Redeemable Common Stock Numerator: Net Loss minus Net Earnings Net loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Less: Income allocable to Class A common stock subject to possible redemption — — — Non-Redeemable Net Loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Denominator: Weighted Average Non-redeemable Common stock Basic and diluted weighted average shares outstanding, Non-redeemable Common stock 51,750,000 58,496,884 45,000,000 Basic and diluted net loss per share, Non-redeemable Common stock $ (11.38) $ (24.97) $ (0.00) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times may exceed the Federal Depository Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature, except for the Company’s derivative instruments (see Note 9). Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements. | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of mutual funds. The Company did not have any cash equivalents as of December 31, 2020. Marketable Securities Held in Trust Account At December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. Through December 31, 2020, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes. Warrant Liability The Company accounts for the Warrants in accordance with the guidance contained in ASC 815-40-15-7D and 7F under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. The Public Warrants and Private Placement Warrants for periods where no observable traded price was available are valued using a Monte Carlo simulation and a modified Black Scholes model, respectively. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security “CARES” Act into law. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (“NOL) and allow businesses to carry back NOLs arising in 2018, 2019 and 2020 to the five prior years, suspend the excess business loss rules, accelerate refunds of previously generated corporate alternative minimum tax credits, generally loosen the business interest limitation under IRC section 163(j) from 30 percent to 50 percent among other technical corrections included in the Tax Cuts and Jobs Act tax provisions. The Company does not believe that the CARES Act will have a significant impact on Company’s financial position or statement of operations. Net Income (Loss) per Common Share Net income (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company has not considered the effect of the warrants sold in the Public Offering and Private Placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events and the inclusion of such warrants would be anti-dilutive. The Company’s statement of operations includes a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per ordinary share. Net income (loss) per common share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account by the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable ordinary shares is calculated by dividing the net loss, adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable ordinary shares outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on the non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): For the Period from April 30, 2020 (inception) through December 31, 2020 Class A Common Stock Subject to Possible Redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 475,781 Unrealized gain on investments held in Trust Account 4,159 Less: Company’s portion available to be withdrawn to pay taxes (193,315) Less: Company’s portion available to be withdrawn for working capital purposes (286,625) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 Non-Redeemable Common Stock Numerator: Net loss minus net earnings Net loss $ (63,467,875) Less: Net income allocable to Class A common stock subject to possible redemption — Non-redeemable net loss $ (63,467,875) Denominator: Weighted average non-redeemable Class B common stock Basic and diluted weighted average shares outstanding, Non-redeemable Class B common stock 62,139,949 Basic and diluted net loss per share, Non-redeemable Class B common stock $ (1.02) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage limit of $250,000. The Company has not experienced losses on this account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. Recent Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
PUBLIC OFFERING
PUBLIC OFFERING | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
PUBLIC OFFERING | NOTE 3. PUBLIC OFFERING Pursuant to the Initial Public Offering, the Company sold 207,000,000 Units, which includes the full exercise by the underwriters of their option to purchase an additional 27,000,000 Units, at $10.00 per Unit. Each Unit consists of one share of Class A common stock and one-fifth of one | NOTE 4. INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering, the Company sold 207,000,000 Units, which includes the full exercise by the underwriters of their option to purchase an additional 27,000,000 Units, at $10.00 per Unit. Each Unit consists of one share of Class A common stock and one-fifth |
PRIVATE PLACEMENT_2
PRIVATE PLACEMENT | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
PRIVATE PLACEMENT | NOTE 4. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 42,850,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $42,850,000. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Window, the proceeds of the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions from the Trust Account with respect to the Private Placement Warrants. | NOTE 5. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 42,850,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $42,850,000. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Window, the proceeds of the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. There will be no redemption rights or liquidating distributions from the Trust Account with respect to the Private Placement Warrants. |
RELATED PARTY TRANSACTIONS_2
RELATED PARTY TRANSACTIONS | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
Related Party Transaction [Line Items] | ||
RELATED PARTY TRANSACTIONS | NOTE 5. RELATED PARTY TRANSACTIONS Founder Shares On May 22, 2020, the Sponsor purchased 21,562,500 shares of the Company’s Class B common stock for an aggregate price of $25,000 (the “Founder Shares” or, individually, a “Founder Share”). On July 14, 2020, the Company effected a stock dividend of one-third outstanding issued The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or similar transaction after a Business Combination that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Notwithstanding the foregoing, if the closing price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, the Founder Shares will be released from the lock-up. Administrative Support Agreement The Company entered into an agreement whereby, commencing on July 30, 2020 through the earlier of the Company’s consummation of a Business Combination and its liquidation, the Company will pay an affiliate of the Sponsor a total of $50,000 per month for office space, administrative and support services. For the three and six months ended June 30, 2021, the Company incurred and paid $150,000 and $ 300,0000 On May 28, 2021, the Company and the Sponsor amended the agreement relating to administrative and support services to provide that the Company will not be required to pay the $50,000 per month fee under the agreement from and after July 1, 2021. Advisory Fee The Company may engage M. Klein and Company, LLC, an affiliate of the Sponsor, or another affiliate of the Sponsor, as its lead financial advisor in connection with a Business Combination and may pay such affiliate a customary financial advisory fee in an amount that constitutes a market standard financial advisory fee for comparable transactions. Promissory Note — Related Party On May 13, 2020, the Sponsor agreed to loan the Company an aggregate of up to $600,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Promissory Note”). The Promissory Note was non-interest bearing and payable on the earlier of December 31, 2021 or the completion of the Initial Public Offering. The borrowings outstanding under the note in the amount of $550,000 were repaid upon the consummation of the Initial Public Offering on August 3, 2020. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of the Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. On February 22, 2021, the Company entered into a convertible promissory note with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $1,500,000 (the “Convertible Promissory Note”). The Convertible Promissory Note is non-interest bearing and payable on the earlier of the date on which the Company consummates a Business Combination or the date that the winding up of the Company is effective. If the Company does not consummate a Business Combination, the Company may use a portion of any funds held outside the Trust Account to repay the Promissory Note; however, no proceeds from the Trust Account may be used for such repayment. Up to $1,500,000 of the Convertible Promissory Note may be converted into warrants at a price of $1.00 per warrant at the option of the Sponsor. The warrants would be identical to the Private Placement Warrants. As of June 30, 2021, the outstanding balance under the Convertible Promissory Note amounted to an aggregate of $1,500,000. The Company assessed the provisions of the Convertible Promissory Note under ASC 470-20. The derivative component of the obligation is initially valued and classified as a derivative liability. The excess of the fair value of the derivative liability over the principal in the amount of $56,191,636 was recorded as interest expense in the accompanying condensed statements of operations. The conversion option was valued using the Black-Scholes option pricing formula, which is considered to be a Level 3 fair value measurement and based on the following assumptions (see Note 9): February 22, 2021 June 30, March 31, (Initial 2021 2021 Measurement) Underlying warrant value $ 21.26 $ 12.45 $ 39.46 Exercise price $ 1.00 $ 1.00 $ 1.00 Holding period 0.06 0.23 0.34 Risk-free rate 0.04 % 0.03 % 0.03 % Volatility 125 % 125 % 125 % Dividend yield 0.0 % 0.0 % 0.0 % The following table presents the change in the fair value of conversion option liability: Fair value as of January 1, 2021 $ — Initial measurement on February 22, 2021 57,691,636 Change in fair value (40,517,598) Fair value as of March 31, 2021 17,174,038 Change in fair value 13,220,756 Fair value as of June 30, 2021 $ 30,394,794 The debt discount is being amortized to interest expense as a non-cash charge over the term of the Convertible Promissory Note, which is assumed to be July 2021, the Company's expected Business Combination date. During the three and six months ended June 30, 2021, the Company recorded $900,000 and $1,200,000 of interest expense related to the amortization of the debt discount, respectively. The remaining balance of the debt discount at June 30, 2021 amounted to $300,000. | NOTE 6. RELATED PARTY TRANSACTIONS Founder Shares On May 22, 2020, the Sponsor purchased 21,562,500 shares of the Company’s Class B common stock for an aggregate price of $25,000 (the “Founder Shares”). On July 14, 2020, the Company effected a stock dividend of one-third of a share of Class B common stock for each outstanding share of Class B common stock, on July 27, 2020, the Company effected a stock dividend of 0.50 to 1 share of Class B common stock for each outstanding share of Class B common stock and on July 30, 2020, the Company effected a stock dividend of 0.20 to 1 share of Class B common stock for each outstanding share of Class B common stock, resulting in 51,750,000 shares of Class B common stock being issued and outstanding. All share and per-share amounts have been retroactively restated to reflect the stock dividends. The Founder Shares included an aggregate of up to 6,750,000 shares subject to forfeiture to the extent that the underwriters’ over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted basis, 20% of the Company’s issued and outstanding shares after the Initial Public Offering. As a result of the underwriters’ election to fully exercise their over-allotment option, 6,750,000 Founder Shares are no longer subject to forfeiture. The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination or (B) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or similar transaction after a Business Combination that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Notwithstanding the foregoing, if the closing price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, the Founder Shares will be released from the lock-up. Administrative Support Agreement The Company entered into an agreement whereby, commencing on July 30, 2020 through the earlier of the Company’s consummation of a Business Combination and its liquidation, the Company will pay an affiliate of the Sponsor a total of $50,000 per month for office space, administrative and support services. For the period from April 30, 2020 (inception) through December 31, 2020, the Company incurred and paid $250,000 in fees for these services. Advisory Fee The Company may engage M. Klein and Company, LLC, an affiliate of the Sponsor, or another affiliate of the Sponsor, as its lead financial advisor in connection with a Business Combination and may pay such affiliate a customary financial advisory fee in an amount that constitutes a market standard financial advisory fee for comparable transactions. Promissory Note — Related Party On May 13, 2020, the Sponsor agreed to loan the Company an aggregate of up to $600,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Promissory Note”). The Promissory Note was non-interest bearing and payable on the earlier of December 31, 2021 or the completion of the Initial Public Offering. The borrowings outstanding under the note in the amount of $550,000 were repaid upon the consummation of the Initial Public Offering on August 3, 2020. Related Party Loans In order to finance transaction costs in connection with a Business Combination, the Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. |
COMMITMENTS AND CONTINGENCIE_11
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Gain Contingencies [Line Items] | |||
COMMITMENTS AND CONTINGENCIES | NOTE 10 — COMMITMENTS AND CONTINGENCIES Contractual Obligations As of June 30, 2021, and December 31, 2020, the Company had $79.2 million and $406.1 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of June 30, 2021, and December 31, 2020. The Company entered into non-cancellable purchase commitment to purchase battery cells over the next 3 years with various vendors. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of June 30, 2021 is set as follows (in thousands): Minimum Purchase Years ended December 31, Commitment 2021 (remainder of the year) $ 104,370 2022 202,400 2023 202,400 Total $ 509,170 In recognition of the CEO’s efforts on the contemplated merger, the board of directors approved a $2 million transaction bonus payable to the CEO, subject to: (1) the Closing of the merger, (ii) the CEO’s continued employment through the closing date and (iii) the CEO’s not giving notice of his intent to resign on or before the closing date. The transaction bonus was paid to the CEO on the first regularly scheduled payroll date after the Closing. Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. There is no material pending or threatened Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of our breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to letters of credit and surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $24.6 million and $15.5 million as of June 30, 2021 and December 31, 2020, respectively, for which no liabilities are recorded on the consolidated balance sheets. | NOTE 10 — COMMITMENTS AND CONTINGENCIES Operating Leases and Other Contractual Obligations The Company has various non-cancelable operating leases for its office space, laboratory, and manufacturing and retail facilities. These leases expire at various times through 2030. Certain lease agreements contain renewal options, rent abatement, and escalation clauses. The Company recognizes rent expense on a straight-line basis over the lease term, commencing when the Company takes possession of the property. Certain of the Company’s office leases entitle the Company to receive a tenant allowance from the landlord. The Company records tenant allowance as a deferred rent credit, which the Company amortizes on a straight-line basis, as a reduction of rent expense, over the term of the underlying lease. In 2020 and in 2019, the Company invoked the right for additional tenant improvements of $4.7 million and $8.6 million, respectively, allowed in the original contracts or amended agreements for the corporate headquarters in Newark, California. As of December 31, 2020, and 2019, the Company had $406.1 million and $162.0 million in commitments related to the Arizona manufacturing plant and equipment. This represents future expected payments on open purchase orders entered as of December 31, 2020, and 2019. In September 2017, the Company entered into an over 10-year lease on an approximately 127,000 square-foot headquarters building, and the lease will expire on September 30, 2030 after the amendment being signed. The Company has committed to pay approximately $0.3 million per month for the building, with 3% annual increases. In September 2018, the Company amended that lease to also include an approximately 300,000 square-foot additional building within the same campus location and extend the term to 12 years, and the lease will expire on September 30, 2030. Under the lease agreement, the Company has committed to pay approximately $0.6 million per month for the additional building, with 3% annual increases on the lease. As of December 31, 2020, and 2019, the landlord provided a tenant improvement allowance for approximately $29.0 million and $24.3 million, respectively, for leasehold improvements in connection with the cost of construction of the initial alterations within the premises. In December 2018, the Company entered into a four-year lease for approximately 500 acres of land in Arizona, on which the Company intends to construct an Arizona plant. Under the lease agreement, the Company is committed to pay $1.8 million per year during the lease term. This rent is paid in arrears. Pursuant to the terms of the lease agreement , the Company has the exclusive option to purchase the Premises (land together with any structures or improvements presently situated thereon or to be constructed thereon) at any time prior to expiration of the lease term for the purchase price to be computed in accordance with the terms and conditions as set forth in the lease agreement. In June 2019, the Company entered into a new lease agreement for a retail location in Beverly Hills, California. The lease commenced on September 1, 2019 and will expire on August 31, 2029. Under the lease agreement, the Company will pay base rent of $0.1 million per month. Base rent is subject to a 3% annual escalation clause during the lease term. From January 2020 to September 2020, the Company entered into nine lease agreements for retail locations in Arizona, California, Florida, New York, and Virginia, with lease expiration dates ranging from March 2025 through December 2032. Base rent for these leases ranges from $0.1 million to $0.4 million per annum, with certain leases having 3% annual base rent escalation clauses during the lease terms. Future minimum payments as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 25,490 2022 28,837 2023 27,633 2024 28,207 2025 27,474 Thereafter 116,155 Total $ 253,796 Rent expense incurred under operating leases was approximately $19.6 million and $18.3 million, for the years ended December 31, 2020 and 2019, respectively. During the year ended 2020, the Company entered into a non-cancellable purchase commitment with a large battery cell supplier to purchase battery cells over the next three years. Battery cell costs can fluctuate from time to time based on, among other things, supply and demand, costs of raw materials, and purchase volumes. The estimated purchase commitment as of December 31, 2020 is set as follows (in thousands): Minimum Purchase Commitment Year Ending December 31: 2021 $ 101,200 2022 202,400 2023 202,400 Total $ 506,000 Capital Lease During the years ended December 31, 2019 and 2020, the Company acquired equipment under capital lease agreements with an initial term of 36 months. Future minimum payments for the capital lease as of December 31, 2020, are approximately as follows (in thousands): Year Ending December 31: 2021 $ 1,729 2022 1,547 2023 1,174 2024 9 Total capital lease obligations 4,459 Less amounts representing interest (1,202) Capital lease obligations, net of interest $ 3,257 Legal Matters From time to time, the Company may be involved in litigation relating to claims arising out of the Company’s operations in the normal course of business. Management is not currently aware of any matters that could have a material adverse effect on the financial position, results of operations, or cash flows of the Company. However, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities. Indemnification In the ordinary course of business, the Company may provide indemnification of varying scope and terms to customers, vendors, investors, directors, and officers with respect to certain matters, including, but not limited to, losses arising out of its breach of such agreements, services to be provided by the Company, or from intellectual property infringement claims made by third parties. These indemnification provisions may survive termination of the underlying agreement and the maximum potential amount of future payments the Company could be required to make under these indemnification provisions may not be subject to maximum loss clauses. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is indeterminable. The Company has never paid a material claim, nor has it been sued in connection with these indemnification arrangements. The Company has indemnification obligations with respect to surety bond primarily used as security against facility leases and utilities infrastructure in the amount of $5.0 | |
Churchill Capital Corp IV | |||
Gain Contingencies [Line Items] | |||
COMMITMENTS AND CONTINGENCIES | NOTE 6. COMMITMENTS AND CONTINGENCIES Lucid Merger Agreement On February 22, 2021, we entered into a Merger Agreement with Merger Sub and Lucid (the “Merger Agreement”), relating to a proposed business combination transaction between us and Lucid. Pursuant to the Merger Agreement, Merger Sub will merge with and into Lucid with Lucid being the surviving entity in the merger. The aggregate consideration to be paid to the shareholders of Lucid will be equal to (a) $11,750,000,000 plus (b) (i) all cash and cash equivalents of Lucid and its subsidiaries less (ii) all indebtedness for borrowed money of Lucid and its subsidiaries, in each case as of two business days prior to the closing date. The consideration to the shareholders of Lucid will be paid entirely in shares of Class A common stock, par value $0.0001 per share, of the Company in an amount equal to $10.00 per share. In connection with the execution of the Merger Agreement and in order to raise additional proceeds to fund the transactions contemplated therein, the Company entered into the PIPE Subscription Agreements with certain investment funds (“PIPE Investors”). Pursuant to the terms of the PIPE Subscription Agreements, the Company has agreed to issue and sell to the PIPE Investors and the PIPE Investors have agreed to buy 166,666,667 shares of Churchill's Class A common stock at a purchase price of $15.00 per share for an aggregate commitment of $2,500,000,005 (the “PIPE Investment”). The closing of the PIPE Investment is conditioned on all conditions set forth in the Merger Agreement having been satisfied or waived and other customary closing conditions, and the Transactions will be consummated immediately following the closing of the PIPE Investment. The PIPE Subscription Agreements will terminate upon the earlier to occur of (i) the termination of the Merger Agreement and (ii) the mutual written agreement of the parties thereto. On February 22, 2021, the Company entered into a Voting and Support Agreement with certain of the PIPE Investors owning 204,148,825 shares of Lucid Series D preferred stock and 113,877,589 shares of Lucid Series E preferred stock as of the date of such agreement. Pursuant to the Voting and Support Agreement, such PIPE Investors agreed to vote all of such shares in favor of the adoption and approval of the Merger Agreement and related matters, agreements and transactions as specified in the Voting and Support Agreement, and in opposition to any Acquisition Transaction (as defined in the Merger Agreement) and any and all other proposals that could reasonably be expected to delay, impair, prevent, interfere with, postpone or impede the consummation of the transactions contemplated by the Merger Agreement as specified in the Voting and Support Agreement. The Voting and Support Agreement will automatically terminate upon the earliest of (i) the effective time, (ii) the date of termination of the Merger Agreement in accordance with its terms prior to the effective time of the transactions, (iii) the mutual written consent of the Company and the applicable PIPE Investors and (iv) the time of any modification, amendment or waiver of the Merger Agreement or any other transaction agreement without certain PIPE Investors' consent. On February 20, 2021, the Company entered into a transactional support agreement with a service provider, pursuant to which the service provider agreed to render certain financial advisory and capital markets advisory services for a potential Business Combination. The Company agreed to pay the service provider a fee of (i) $6,000,000, which is payable upon the consummation of a Business Combination, (ii) $500,000, which is payable upon consummation of the financing and (iii) out-of-pocket expenses not to exceed $125,000 without prior approval. The fee will not be payable in the event the Company does not consummate a Business Combination. Registration Rights Pursuant to a registration rights agreement entered into on July 29, 2020, the holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants or warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters are entitled to a deferred fee of $0.35 per Unit, or $72,450,000 in the aggregate. The deferred fee will be waived by the underwriters in the event that the Company does not complete a Business Combination, subject to the terms of the underwriting agreement. The underwriters waived the upfront underwriting discount on 19,982,000 Units, resulting in a reduction of the upfront underwriting discount of $3,996,400. In addition, the underwriters reimbursed the Company an aggregate of $1,000,000 for costs incurred in connection with the Initial Public Offering. Legal Fees As of June 30, 2021, the Company incurred legal fees of $6,487,154. These fees were paid on July 23, 2021 at consummation of Business Combination. Due Diligence Fees As of June 30, 2021, the company incurred due diligence fees of $1,499,780. These fees were paid on July 23, 2021 at consummation of Business Combination. | NOTE 7. COMMITMENTS AND CONTINGENCIES Registration Rights Pursuant to a registration rights agreement entered into on July 29, 2020, the holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants or warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters are entitled to a deferred fee of $0.35 per Unit, or $72,450,000 in the aggregate. The deferred fee will be waived by the underwriters in the event that the Company does not complete a Business Combination, subject to the terms of the underwriting agreement. The underwriters waived the upfront underwriting discount on 19,982,000 Units, resulting in a reduction of the upfront underwriting discount of $3,996,400. In addition, the underwriters reimbursed the Company an aggregate of $1,000,000 for costs incurred in connection with the Initial Public Offering. Legal Fees As of December 31, 2020, the Company incurred legal fees of $2,152,960. These fees will only become due and payable upon the consummation of an initial Business Combination (see Note 12). |
STOCKHOLDERS' EQUITY_2
STOCKHOLDERS' EQUITY | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
STOCKHOLDERS' EQUITY | NOTE 7. STOCKHOLDERS’ EQUITY Preferred Stock — Class A Common Stock issued issued The Company determined the common stock subject to redemption to be equal to the redemption value of approximately $10.00 per share of common stock while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Upon considering the impact of the PIPE Investment and associated PIPE Subscription Agreements, it was concluded that the redemption value should include all the Public Shares resulting in the common stock subject to possible redemption being equal to $2,070,000,000. This resulted in a measurement adjustment to the initial carrying value of the common stock subject to redemption with the offset recorded to additional paid-in capital and accumulated deficit. Class B Common Stock Holders of Class B common stock will have the right to elect all of the Company’s directors prior to a Business Combination. Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law. The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination in consideration for such seller’s interest in the Business Combination target, any private placement-equivalent warrants issued, or to be issued, to any seller in a Business Combination. | NOTE 8. STOCKHOLDERS’ EQUITY Preferred Stock issued Class A Common Stock issued Class B Common Stock issued Holders of Class B common stock will have the right to elect all of the Company’s directors prior to a Business Combination. Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law. The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination in consideration for such seller’s interest in the Business Combination target, any private placement-equivalent warrants issued, or to be issued, to any seller in a Business Combination. |
WARRANT LIABILITY_2
WARRANT LIABILITY | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Churchill Capital Corp IV | ||
WARRANT LIABILITY | NOTE 8. WARRANT LIABILITY The Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its best efforts to file with the SEC, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its reasonable best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available. Once the Public Warrants become exercisable, the Company may redeem the Public Warrants: · in whole and not in part; · at a price of $0.01 per Public Warrant; · upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each Public Warrant holder; and · if, and only if, the closing price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the Public Warrant holders. If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Public Warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Window and the Company liquidates the funds held in the Trust Account, holders of the Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such Public Warrants. Accordingly, the warrants may expire worthless. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. | NOTE 9. WARRANT LIABILITY Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, the Company will use its best efforts to file with the SEC, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its reasonable best efforts to qualify the shares under applicable blue sky laws to the extent an exemption is not available. Once the warrants become exercisable, the Company may redeem the Public Warrants: ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon a minimum of 30 days ’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and ● if, and only if, the closing price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders. If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Window and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. |
FAIR VALUE MEASUREMENTS_2_3
FAIR VALUE MEASUREMENTS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
FAIR VALUE MEASUREMENTS | NOTE 4 — FAIR VALUE MEASUREMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 5 “Contingent Forward Contracts” and Note 6 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ — $ 30,844 Issuance 2,167,332 — Change in fair value 454,546 8,719 Settlement (2,621,878) (39,563) Fair value-end of period $ — $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Six Months Ended June 30, 2021 2020 Fair value-beginning of period $ 2,960 $ 1,755 Change in fair value 6,976 114 Settlement (9,936) — Fair value-end of period $ — $ 1,869 | NOTE 4 — FAIR VALUE OF FINANCIAL INSTRUMENTS The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the “exit price” that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between independent market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy, which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The accounting standard established a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available. This hierarchy prioritizes the inputs into three broad levels as follows: ● Level 1 — Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities. ● Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. ● Level 3 — Inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. Factors used to develop the estimated fair value are unobservable inputs that are not supported by market activity. The sensitivity of the fair value measurement to changes in unobservable inputs might result in a significantly higher or lower measurement. Level 1 investments consist solely of short-term and long-term restricted cash valued at amortized cost that approximates fair value. Level 2 investments consist solely of certificate of deposits. Level 3 liabilities consist of convertible preferred share warrant liability and contingent forward contract liability, in which the fair value was measured upon issuance and is remeasured at each reporting date. The valuation methodology and underlying assumptions are discussed further in Note 6 “Contingent Forward Contracts” and Note 7 “Convertible Preferred Share Warrant Liability”. The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 A reconciliation of the contingent forward contract liability measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 15,791 Change in fair value 15,053 Fair value-December 31, 2019 30,844 Change in fair value of Series D contingent forward contract 8,720 Settlement of Series D contingent forward contract (39,563) Issuance of Series E contingent forward contract 793 Change in fair value of Series E contingent forward contract 109,662 Settlement of Series E contingent forward contract (110,456) Fair value-December 31, 2020 $ — A reconciliation of the convertible preferred share warrant liabilities measured and recorded at fair value on a recurring basis is as follows (in thousands): Fair value-December 31, 2018 $ 1,349 Change in fair value 406 Fair value-December 31, 2019 1,755 Change in fair value 1,205 Fair value-December 31, 2020 $ 2,960 | |
Churchill Capital Corp IV | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
FAIR VALUE MEASUREMENTS | NOTE 9. FAIR VALUE MEASUREMENTS The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: June 30, December 31, Description Level 2021 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,290,785 $ 2,070,086,006 Liabilities: Warrant liability – Public Warrants 1 658,260,000 62,928,000 Warrant liability – Private Placement Warrants 3 910,991,000 79,272,500 Conversion option liability 3 30,394,794 — The derivative instruments were accounted for as liabilities in accordance with ASC 815-40 and are measured at fair value at inception and on a recurring basis, with changes in fair value recorded in the condensed consolidated statements of operations. The Private Placement Warrants were valued using a modified Black Scholes model, which is considered to be a Level 3 fair value measurement. Subsequent to the Public Warrants detachment from the Units, the Public Warrants are valued based on quoted market price, under ticker CCIV.WS, which is a Level 1 fair value. As of June 30, 2021, March 31, 2021 and December 31, 2020, the estimated fair value of the Private Placement Warrants was determined using a Black-Scholes valuation and based on the following significant inputs: June 30, March 31, December 31, 2021 2021 2020 Exercise price $ 11.50 $ 11.50 $ 11.50 Stock price $ 28.82 $ 23.18 $ 10.01 Volatility 76.52 % 40 % 30 % Probability of completing a Business Combination 95 % 90 % 80 % Term 5.06 5.23 5.33 Risk-free rate 0.88 % 0.97 % 0.50 % Dividend yield 0.0 % 0.0 % 0.0 % The following table presents the changes in the fair value of the Level 3 warrant liabilities: Private Placement Warrants January 1, 2021 $ 79,272,500 Change in fair value 454,210,000 Fair value as of March 31, 2021 533,482,500 Change in fair value 377,508,500 Fair value as of June 30, 2021 910,991,000 There were no transfers in or out of Level 3 from other levels in the fair value hierarchy. | NOTE 11. FAIR VALUE MEASUREMENTS The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level December 31, 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,086,006 Liabilities: Warrant Liability – Public Warrants 1 $ 62,928,000 Warrant Liability – Private Placement Warrants 3 $ 79,272,500 The Warrants were accounted for as liabilities in accordance with ASC 815-40 and are measured at fair value at inception and on a recurring basis, with changes in fair value recorded in the statement of operations. At issuance, the Warrant Liability for Public Warrants and Private Placement Warrants were valued as of July 30, 2020 using a Monte Carlo simulation and a modified Black Scholes model, respectively, which are considered to be a Level 3 fair value measurements. Subsequent to the Public Warrants detachment from the Units, the Public Warrants are valued based on quoted market price, under ticker CCIV.WS, which is a Level 1 fair value. The Monte Carlo simulation’s primary unobservable input utilized in determining the fair value of the Warrants is the probability of consummation of the Business Combination. The probability assigned to the consummation of the Business Combination was 80% which was estimated based on the observed success rates of business combinations for special purpose acquisition companies. The expected volatility as of the Initial Public Offering date was derived from observable public warrant pricing on comparable ‘blank-check’ companies without an identified target. As of issuance and December 31, 2020, the estimated fair value of Warrant Liability — Private Placement Warrants were determined using a Black-Scholes valuation and based on the following significant inputs: At As of December 31, issuance 2020 Exercise price $ 11.50 $ 11.50 Stock price $ 9.80 $ 10.01 Volatility 19.8 % 30 % Probability of completing a Business Combination 80.0 % 80 % Term 5.33 5.33 Risk-free rate 0.34 % 0.50 % Dividend yield 0.0 % 0.0 % The following table presents the changes in the fair value of warrant liabilities: Private Placement Public Warrant Liabilities Fair value as of April 30, 2020 (inception) $ — $ — $ — Initial measurement on July 30, 2020 42,850,000 40,572,000 83,422,000 Change in valuation inputs or other assumptions 36,422,500 22,356,000 58,778,500 Fair value as of December 31, 2020 $ 79,272,500 $ 62,928,000 $ 142,200,500 |
SUBSEQUENT EVENTS_2_3_4
SUBSEQUENT EVENTS | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Subsequent Event [Line Items] | |||
SUBSEQUENT EVENTS | NOTE 14 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the three and six months ended June 30, 2021, the Company has evaluated subsequent events for both conditions existing and not existing on June 30, 2021, and concluded there were no subsequent events to recognize in the financial statements. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share (“Common Stock”), and warrants began trading on The Nasdaq Stock Market LLC under the symbols “LCID” and “LCIDW,” respectively. Immediately prior to the Closing, all of Lucid’s preferred shares (the “Lucid Preferred Shares”) then issued and outstanding were converted into Lucid’s common shares, par value $0.0001 per share (the “Lucid Common Shares”) in accordance with the terms of Lucid Group’s Memorandum and Articles of Association, such that each converted Lucid Preferred Share was no longer outstanding and ceased to exist, and each holder thereof thereafter ceased to have any rights with respect to such securities. At the date and time that the business combination became effective, each Lucid Common Share then issued and outstanding was automatically cancelled and the holders of Lucid Common Shares received 2.644 shares of Common Stock in exchange for each Lucid Common Share they held at such time, based on the Equity Value (as defined in the Merger Agreement) of $12.3 billion. The Equity Value equals (a) $11.8 billion plus (b) (i) all cash and cash equivalents of Lucid and its subsidiaries less (ii) all indebtedness for borrowed money of Lucid and its subsidiaries, in each case as of two business days prior to the Closing. The holders of the Lucid Common Shares were issued 1,193,226,511 shares of Common Stock at the Closing. Subsequent to June 30, 2021, the Company entered into new retail lease agreements for various locations. The leases commenced in and after July 2021 and will expire on or before June 2031 | NOTE 15 — SUBSEQUENT EVENTS In connection with the preparation of the financial statements for the year ended December 31, 2020, the Company has evaluated subsequent events through March 19, 2021, the date the financial statements were available to be issued, for both conditions existing and not existing at December 31, 2020, and concluded there were no subsequent events to recognize in the financial statements. In January 2021, the Company’s board of directors approved the 2021 Stock Incentive Plan (the “2021 Plan”). The 2021 Plan will replace the 2009 Plan and 2014 Plan. 3,981,178 shares reserved for future issuance under 2009 Plan and 2014 Plan will be removed and added to share reserve under the 2021 Plan. If outstanding share awards issued under the 2009 Plan and 2014 Plan 1) expire or terminate for any reason prior to exercise or settlement, 2) are forfeited, canceled or otherwise returned to the Company because of the failure to meet vesting conditions, or 3) are reacquired, withheld to satisfy a tax withholding obligation in connection with an award or to satisfy the purchase price or exercise price of a share award (collectively, the “Returning Shares”), will be added back to the 2021 Plan. The 2021 Plan provides for the grant of incentive share options, within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, to the Company’s employees and any parent and subsidiary corporations’ employees, and for the grant of nonstatutory share options, restricted shares. Restricted Stock Units (RSUs), share appreciation rights, performance based awards and cash based awards to the Company’s employees, directors, and consultants and its parent and subsidiary corporations’ employees and consultants. The 2021 Plan became effective in January 2021. 32,076,334 shares were authorized to issue under the 2021 Plan. In February 2021, the Company entered into new lease agreements for retail locations in Manhasset, New York and in Chicago, Illinois. The leases commenced in February 2021 and will expire on or before January 31, 2031. Under the lease agreements, the Company will pay base rent from $0.5 million to $0.8 million annually. Base rent is subject to a 2.5% annual escalation clause during the lease term. In February 2021, the Company and Ayar entered into Amendment No. 1 to the original Series E Preferred Share Purchase Agreement (“Amendment No. 1”) entered into September 2020 (refer to Note 7). Under the Amendment No. 1, Ayar and the Company agreed to enter into the third closing of additional 50,612,262 Series E convertible preferred shares at $7.90 per share, aggregating to $400.0 million. Upon the signing of the Amendment No. 1, the Company received the issuance proceeds of $400.0 million from Ayar in February 2021. Amendment No. 1 also allowed the Company to provide an opportunity to all current convertible preferred shareholders other than Ayar (“Eligible Holders”) to purchase up to 8,977,769 Series E convertible preferred shares on a pro rata basis at $7.90 per share, aggregating to $71.0 million. The Company will issue the Offer Notice to all Eligible Holders two business days following the third closing, and all Eligible Holders have 14 calendar days (the “Exercise Period”) to notice the Company on the number of Series E convertible preferred shares they intend to purchase. Along with the execution of the Amendment No. 1, the Company also increased the authorized number of common shares and convertible preferred shares to 498,017,734 and 437,182,072 shares, respectively. On February 22, 2021, Churchill Capital Corp IV (“CCIV”) (NYSE:CCIV), a special purpose acquisition company or SPAC, announced that it had entered into a definitive agreement for a merger that would result in the Company becoming a wholly owned subsidiary of CCIV. If such merger is ultimately completed, the Company would effectively comprise all of CCIV’s material operations. In February 2021, the Company’s board of directors granted a total of 1,035,000 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $38.8 million and $44.0 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. Events Subsequent to the Original Issuance of Consolidated Financial Statements (Unaudited) In March 2021, the Company’s board of directors granted a total of 1,066,631 RSUs under the 2021 Plan in connection with the proposed merger with CCIV. The aggregate grant date fair value of the RSUs is estimated to be between $53.6 million and $60.7 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The RSUs are subject to a performance condition and a service condition. The performance condition will be satisfied upon the closing of the proposed merger with CCIV. The service condition for 25% of the RSUs will be satisfied 375 days after the closing of the proposed merger with CCIV and will be satisfied for the remaining RSUs in equal quarterly installments thereafter, subject to continuous employment through each vesting date. In March 2021, the Company’s board of directors granted a total of 11,293,177 RSUs to its CEO under the 2021 Plan in connection with the proposed merger with CCIV. The CEO RSU Award will be comprised of 5,232,507 RSUs subject to performance and service conditions (the “CEO Time-Based RSUs”) and 6,060,670 RSUs subject to performance and market conditions (the “CEO Performance RSUs”). The aggregate grant date fair value of the CEO RSU Award is estimated to be $556.1 million based on the estimated fair value of our underlying common shares using preliminary valuation techniques, including a Monte Carlo simulation method for awards with market conditions, with the most reliable information currently available. Actual fair value may differ from these estimates and such differences may be material. The performance condition of the CEO Time-Based RSUs and CEO Performance RSUs will be satisfied upon the closing of the proposed merger with CCIV. The service condition for the CEO Time-Based RSUs will be satisfied in 16 equal quarterly installments beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. The market conditions for the CEO Performance RSUs will be satisfied based upon the achievement of certain market capitalization goals of the combined company during the five-year period beginning after the closing of the proposed merger with CCIV, subject to continuous employment through each vesting date. In April 2021, the Company issued 25,306,130 Series E Preferred Shares at a purchase price of approximately $7.90 per share for an aggregate purchase price of $200.0 million. The total number of shares issued include 202,449 shares issued to the CEO. In May 2021, the Company completed its evaluation related to the exercise of the convertible preferred share warrant liability that was settled in its entirety in February 2021. Upon final settlement, the Company converted the warrants into $12.9 million of Series D convertible preferred shares and recorded a $7.0 million loss related to fair value remeasurement of the warrants in the consolidated statements of operations. From March 2021 through May 2021, the Company entered into new lease agreements for retail locations in various locations. The leases commenced in April 2021 and will expire on or before March 2032. Under the lease agreements, the Company will pay base rent from $0.2 million to $1.2 million annually. On July 22, 2021, CCIV held a special meeting of stockholders to approve the Merger Agreement. Following the Closing on July 23, 2021 CCIV has changed its name to Lucid Group, Inc. and its Class A common stock, par value $0.0001 per share ( “ ” “ ” “ ” | |
Churchill Capital Corp IV | |||
Subsequent Event [Line Items] | |||
SUBSEQUENT EVENTS | NOTE 10. SUBSEQUENT EVENTS The Company’s management has evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed consolidated financial statements were issued. Based upon this review, except as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements. On July 23, 2021, the Company and Lucid consummated the closing of the transactions contemplated by the Merger Agreements (see Note 6). | NOTE 12. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. Based upon this review, other than as described below and in Note 2, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. Merger Agreement On February 22, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Merger Sub and Atieva, relating to a proposed business combination transaction between the Company and Atieva. Pursuant to the Merger Agreement, Merger Sub will merge with and into Atieva with Atieva being the surviving entity in the merger (the “Merger” and, together with the other transactions contemplated by the Merger Agreement, the “Transactions”). The aggregate consideration to be paid to the shareholders of Atieva will be equal to (a) $11,750,000,000 plus (b) (i) all cash and cash equivalents of Atieva and its subsidiaries less (ii) all indebtedness for borrowed money of Atieva and its subsidiaries, in each case as of two business days prior to the closing date (the “Equity Value”) and will be paid entirely in shares of Class A common stock, par value $0.0001 per share, of the Company (the “Class A Common Stock”) in an amount equal to $10.00 per share (the “Merger Consideration”). At the effective time of the Merger: (i) each share of capital stock of Atieva (the “Atieva Shares”) will be cancelled and automatically deemed for all purposes to represent the right to receive, in the aggregate, the Merger Consideration. All share incentive plan or similar equity-based compensation plans maintained for employees of Atieva will be assumed by the Company and all outstanding options to purchase Atieva Shares (each, a “Atieva Option”) and each restricted stock unit award (“RSU”) with respect to Atieva Shares (each, a “Atieva RSU”) will be assumed by the Company as described below. For purposes of the following paragraph, the “Exchange Ratio” means the Equity Value per share divided by $10.00. (ii) each Atieva Option will become an option to purchase shares of Class A Common Stock (each, an “Assumed Option”), on the same terms and conditions (including applicable vesting, exercise and expiration provisions) as applied to the Atieva Option immediately prior to the effective time of the Merger, except that (i) the number of shares of Class A Common Stock subject to such Assumed Option shall equal the product of (x) the number of Atieva Shares that were subject to the option immediately prior to the effective time of the Merger, multiplied by (y) the Exchange Ratio, rounded down to the nearest whole share, and (B) the per-share exercise price shall equal the quotient of (1) the exercise price per Atieva Share at which such option was exercisable immediately prior to the effective time of the Merger, divided by (2) the Exchange Ratio, rounded up to the nearest whole cent. (iii) each Atieva RSU, will be assumed by the Company and become an RSU with respect to shares of Class A Common Stock (each, an “Assumed RSU”) on the same terms and conditions (including applicable vesting provisions) as applied to each Atieva RSU immediately prior to the effective time of the Merger, except that the number of shares of Class A Common Stock subject to such Assumed RSU Award will be equal the product of (x) the number of Atieva Shares that were subject to such RSU immediately prior to the effective time of the Merger, multiplied by (y) the Exchange Ratio, rounded down to the nearest whole share. The Merger Agreement contains customary representations, warranties and covenants by the parties thereto and the closing is subject to certain conditions as further described in the Merger Agreement. Subscription Agreement In connection with the execution of the Merger Agreement, the Company entered into certain common stock subscription agreements (the “Subscription Agreements”) with certain investment funds (the “PIPE Investors”) pursuant to which, the Company has agreed to issue and sell to the PIPE Investors $2.5 billion of Class A common stock (the “PIPE Shares”) in reliance on an exemption from registration under Section 4(a)(2) under the Securities Act at a purchase price of $15 per share (the “PIPE Investment”). Pursuant to the Subscription Agreements, the PIPE Investors have agreed to not transfer any PIPE Shares until the later of (i) the effectiveness of the registration statement to be filed following the closing of the Transactions to register the PIPE Shares and (ii) September 1, 2021. The closing of the PIPE Investment is conditioned on all conditions set forth in the Merger Agreement having been satisfied or waived and other customary closing conditions, and the Transactions will be consummated immediately following the closing of the PIPE Investment. The Subscription Agreements will terminate upon the earlier to occur of (i) the termination of the Merger Agreement and (ii) the mutual written agreement of the parties thereto. The Subscription Agreements provide that the Company is required to file with the SEC, within 30 days after the consummation of the Transactions, a shelf registration statement covering the resale of the PIPE Shares and to use its commercially reasonable efforts to have such registration statement declared effective as soon as practicable after the filing thereof but no later than the earlier of (i) the 90th day (or 150th day if the SEC notifies the Company that it will “review” such registration statement) following the closing of the PIPE Investment and (ii) the 10th business day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such registration statement will not be “reviewed” or will not be subject to further review. Consulting Agreements On February 20, 2021, the Company entered into a transactional support agreement with a service provider, pursuant to which the service provider agreed to render certain financial advisory and capital markets advisory services for a potential Business Combination. The Company agreed to pay the service provider a fee of (i) $6,000,000 is payable upon the consummation of a Business Combination (ii) $500,000 is payable upon consummation of the financing (iii) out-of-pocket expenses not to exceed $125,000 without prior approval. Promissory Note On February 22, 2021, the Company entered into a convertible promissory note with the Sponsor pursuant to which the Sponsor agreed to loan the Company up to an aggregate principal amount of $1,500,000 (the “Note”). The Note is non-interest bearing and payable on the earlier of (i) the date of which the Company consummates a Business Combination or (ii) the date that the winding up of the Company. If the Company does not consummate a Business Combination, the Company may use a portion of any funds held outside the Trust Account to repay the Promissory Note; however, no proceeds from the Trust Account may be used for such repayment. Up to $1,500,000 of the Note may be converted into warrants at a price of $1.00 per warrant at the option of the Sponsor. The warrants would be identical to the Private Placement Warrants. The Company borrowed an aggregate of $1,500,000 on February 22, 2021. Legal Proceedings On March 3, 2021, Richard Hofman, a purported stockholder of the Company, filed a complaint, individually and on behalf of other of the Company stockholders, in the Superior Court of the State of California against the Company, Lucid, and other unnamed defendants. The complaint alleged claims for fraud, negligent misrepresentation, and false advertising and unfair business practices in connection with allegedly false and misleading statements and omissions in the Company's public filings, concerning the proposed merger between the Company and Lucid. The complaint sought injunctive relief, as well as compensatory and punitive damages. On April 18, 2021, Randy Phillips, a purported stockholder of the Company, filed a complaint, individually and on behalf of other Company stockholders, in the United States District Court for the Northern District of Alabama against the Company, Atieva, Inc. (doing business as Lucid), Michael Klein, Jay Taragin, and Peter Rawlinson. The complaint alleges claims for violations of the federal securities laws under Section 10(b) and Section 20(a) of the Exchange Act in connection with allegedly false and misleading statements and omissions concerning Lucid's business plans and prospects, as well as the proposed merger between the Company and Lucid. The complaint seeks compensatory and punitive damages. |
SUMMARY OF SIGNIFICANT ACCOU_22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||
Basis of Presentation | Basis of Presentation and Preparation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared pursuant to instructions to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Under these rules and regulations, some information and footnote disclosures normally included in the financial statements prepared under accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted. These financial statements should be read together with the Company’s audited financial statements for the year ended December 31, 2020 and 2019 included in Lucid Group’s Registration Statement on Form S-1, filed with the SEC on August 2, 2021. In management’s opinion, these unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the Company’s financial position as of June 30, 2021, the results of operations for the three and six months ended June 30, 2021 and 2020, and cash flows for the six months ended June 30, 2021 and 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year ending December 31, 2021 or any other future interim or annual period. The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | Basis of Presentation and Preparation The accompanying consolidated financial statements have been prepared pursuant to generally accepted accounting principles generally accepted in the United States of America (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”).The consolidated financial statements as of and for the years ended December 31, 2020 and 2019 include the accounts of Atieva Cayman and its wholly owned subsidiaries. All significant intercompany balances accounts and transactions have been eliminated in the consolidated financial statements. | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense, and estimated incremental borrowing rates for assessing operating and financing lease liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Significant estimates, assumptions and judgments made by management include, among others, the determination of the useful lives of property and equipment, fair values of warrants, fair value of contingent forward contracts liability, fair values of common shares, accounting for income taxes, and share-based compensation expense. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB Accounting Standards Codification (ASC) 740, Accounting for Income Taxes, which requires an asset and liability approach. The Company utilizes the liability method under which deferred tax assets and liabilities arise from the temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements, as well as from net operating loss and tax credit carryforwards. Deferred tax amounts are determined by using the tax rates expected to be in effect when the taxes will actually be paid, or refunds received, as provided for under currently enacted tax law. The Company recognizes deferred tax assets to the extent that these assets are more likely than not to be realized. In making such a determination, all available positive and negative evidence are considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If it is determined that deferred tax assets would be realized in the future in excess of their net recorded amount, an adjustment would be made to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process which includes (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company’s policy is to recognize interest related to unrecognized tax benefits in other income (expense) — net and to recognize penalties in general and administrative expenses in the consolidated statements of operations. Accrued interest and penalties are included within income tax liabilities in the consolidated balance sheets. | ||
Net Income (Loss) per Common Share | Net Loss Per Share Basic and diluted net loss per share attributable to common shareholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred shares to be participating securities as the holders of such shares have the right to receive nonforfeitable dividends on a pari passu basis in the event that a dividend is paid on common shares. Under the two-class method, the net loss attributable to common shareholders is not allocated to the convertible preferred shares as the preferred shareholders do not have a contractual obligation to share in the Company’s losses. Basic net loss per share is computed by dividing net loss attributable to common shareholders by the weighted-average number of shares of common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common share equivalents to the extent they are dilutive. For purposes of this calculation, convertible preferred shares, share options, convertible and convertible preferred share warrants are considered to be common share equivalents but have been excluded from the calculation of diluted net loss per share attributable to common shareholders as their effect is anti-dilutive for all periods presented. | ||
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable primarily consists of current trade receivables from a single customer as of June 30, 2021 and December 31, 2020, and all of the Company’s revenue is from the same customer for the three and six months ended June 30, 2021 and 2020. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash, cash equivalents, short-term investments, and accounts receivable. The Company places its cash primarily with domestic financial institutions that are federally insured within statutory limits, but at times its deposits may exceed federally insured limits. Further, accounts receivable consists of current trade receivables from a single customer as of December 31, 2020 and 2019, and all of the Company’s revenue is from the same customer for the years ended December 31, 2020 and 2019. | |
Recent Accounting Standards | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02 (“ASC 842”), Leases, to require lessees to recognize all leases, with certain exceptions, on the balance sheet, while recognition on the statement of operations will remain similar to current lease accounting. Subsequently, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, ASU No. 2018-11, Targeted Improvements, ASU No. 2018-20, Narrow-Scope Improvements for Lessors, and ASU 2019-01, Codification Improvements, to clarify and amend the guidance in ASU No. 2016-02. ASC 842 eliminates real estate-specific provisions and modifies certain aspects of lessor accounting. This standard is effective for interim and annual periods beginning after December 15, 2018 for public business entities. Private companies are required to adopt the new leases standard for annual periods beginning after December 15, 2021 and interim periods in annual periods beginning after December 15, 2022. Early adoption is permitted for all entities. The Company adopted ASC 842 as of January 1, 2021 using the modified retrospective approach (“adoption of the new lease standard”). This approach allows entities to either apply the new lease standard to the beginning of the earliest period presented or only to the consolidated financial statements in the period of adoption without restating prior periods. The Company has elected to apply the new guidance at the date of adoption without restating prior periods. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company to carry forward the historical determination of contracts as leases, lease classification and not reassess initial direct costs for historical lease arrangements. Accordingly, previously reported financial statements, including footnote disclosures, have not been recast to reflect the application of the new standard to all comparative periods presented. The finance lease classification under ASC 842 includes leases previously classified as capital leases under ASC 840. The Company has lease agreements with lease and non-lease components and has elected not to utilize the practical expedient to account for lease and non-lease components together, rather the Company is accounting for the lease and non-lease components separately on the consolidated financial statements. Operating lease assets are included within operating lease right-of-use (“ROU”) assets. Finance lease assets are included within property, plant and equipment, net. The corresponding operating lease liabilities and finance lease liabilities are included within other current liabilities and other long-term liabilities on the Company’s consolidated balance sheet as of June 30, 2021. The Company has elected not to present short-term leases on the consolidated balance sheet as these leases have a lease term of 12 months or less at lease inception and do not contain purchase options or renewal terms that the Company is reasonably certain to exercise. All other lease assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the later of ASC 842 adoption date or lease commencement date. Because most of the Company’s leases do not provide an implicit rate of return, the Company used the Company’s incremental borrowing rate based on the information available at adoption date or lease commencement date in determining the present value of lease payments. Adoption of the new lease standard on January 1, 2021 had a material impact on the Company’s interim unaudited consolidated financial statements. The most significant impacts related to the (i) recording of ROU asset of $94.2 million, and (ii) recording lease liability of $126.0 million, as of January 1, 2021 on the consolidated balance sheets. The Company also reclassified prepaid expenses of $0.2 million and deferred rent balance, including tenant improvement allowances, and other liability balances of $31.8 million relating to the Company’s existing lease arrangements as of December 31, 2020, into the ROU asset balance as of January 1, 2021. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The standard did not materially impact the Company’s consolidated statement of operations and consolidated statement of cash flows. The cumulative effect of the changes made to the Company’s consolidated balance sheet as of January 1, 2021 for the adoption of the new lease standard was as follows (in thousands): Adjustments Balances at from Adoption of Balances at December 31, New Lease January 1, 2020 Standard 2021 Assets Prepaid expenses $ 21,840 $ (180) $ 21,660 Property, plant and equipment, net 713,274 3,237 716,511 Operating lease right-of-use assets — 90,932 90,932 Liabilities Other current liabilities 151,753 8,030 159,783 Other long-term liabilities 38,905 86,152 125,057 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements or notes thereto. | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to update the methodology used to measure current expected credit losses (“CECL”). This ASU applies to financial assets measured at amortized cost, including loans, net investments in leases, and trade accounts receivable as well as certain off-balance sheet credit exposures, such as loan commitments and guarantees. The Company adopted this ASU starting on January 1, 2020 using the modified retrospective transition method through a cumulative-effect adjustment to retained earnings in the period of adoption. The adoption of this ASU did not have impact to the consolidated financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, with certain exceptions. For nonpublic entities, 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 if financial statements have not yet been issued (for public business entities) or have not yet been made available for issuance (for all other entities). The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. In August 2018, FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements for fair value measurements. The new guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and early adoption is permitted. ASU No. 2018-13 requires that certain of the amendments be applied prospectively, while other amendments should be applied retrospectively to all periods presented. ASU No. 2018-13 is effective for the Company in its fiscal year 2021. The Company adopted this ASU starting on January 1, 2020. The adoption of this ASU did not have a material impact to the consolidated financial statements and related disclosures. | |
Churchill Capital Corp IV | |||
Financing Receivable, Impaired [Line Items] | |||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2020, as filed with the SEC on May 14, 2021. The interim results for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods. | Basis of Presentation The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. | |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany balances and transactions have been eliminated in consolidation. | ||
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a registration statement under the Securities Act declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. | |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. | Use of Estimates The preparation of the financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2021 and December 31, 2020. | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. Cash equivalents consist of mutual funds. The Company did not have any cash equivalents as of December 31, 2020. | |
Marketable Securities Held in Trust Account | Marketable Securities Held in Trust Account At June 30, 2021 and December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. From inception to June 30, 2021, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes, of which no amounts were withdrawn during the three and six months ended June 30, 2021. | Marketable Securities Held in Trust Account At December 31, 2020, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. Through December 31, 2020, the Company withdrew $450,000 of interest earned on the Trust Account for working capital purposes. | |
Convertible Debt | Convertible Debt The Company accounts for conversion options embedded in convertible notes in accordance with ASC 815. ASC 815 generally requires companies to bifurcate conversion options embedded in convertible notes from their host instruments and to account for them as free standing derivative financial instruments. The Company reviews the terms of convertible debt issued to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument. Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value. The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense. | ||
Derivative Liabilities | Derivative Liabilities The Company accounts for debt and equity issuances as either equity-classified or liability-classified instruments based on an assessment of the instruments specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the instruments are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common stock and whether the holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of issuance of the instruments and as of each subsequent quarterly period end date while the instruments are outstanding. For issued or modified instruments that meet all of the criteria for equity classification, the instruments are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified instruments that do not meet all the criteria for equity classification, the instruments are required to be recorded as a derivative liability at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the instruments are recognized as a non-cash gain or loss on the condensed consolidated statements of operations. | ||
Warrant Liability | Warrant Liability The Company accounts for the Warrants in accordance with the guidance contained in ASC 815-40-15-7D and 7F under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations. The Public Warrants and Private Placement Warrants for periods where no observable traded price was available are valued using a Monte Carlo simulation and a modified Black Scholes model, respectively. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. | ||
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the issuer’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in capital and accumulated deficit. | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet. | |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. As of June 30, 2021 and December 31, 2020, the Company had a deferred tax asset of approximately $1,342,000 and $594,000 ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statements recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three and six months ended June 30, 2021, the Company recorded $1,962 of income tax expense. The Company’s effective tax rate for the three and six months ended June 30, 2021 was approximately 0%, which differs from the expected income tax rate primarily due to the permanent differences associated with the change in the fair value of the derivative liabilities and start-up costs (discussed above) which are not currently deductible. | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security “CARES” Act into law. The CARES Act includes several significant business tax provisions that, among other things, would eliminate the taxable income limit for certain net operating losses (“NOL) and allow businesses to carry back NOLs arising in 2018, 2019 and 2020 to the five prior years, suspend the excess business loss rules, accelerate refunds of previously generated corporate alternative minimum tax credits, generally loosen the business interest limitation under IRC section 163(j) from 30 percent to 50 percent among other technical corrections included in the Tax Cuts and Jobs Act tax provisions. The Company does not believe that the CARES Act will have a significant impact on Company’s financial position or statement of operations. | |
Net Income (Loss) per Common Share | Net income (Loss) per Share Net income (loss) per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering and private placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the inclusion of such warrants would be anti-dilutive. The Company’s statements of operations include a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable common stock is calculated by dividing the net income (loss), adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable common stock outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): For the Period From April 30, 2020 Three Months Six Months (inception) Ended Ended through June 30, June 30, June 30, 2021 2021 2020 Class A common stock subject to possible redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 27,453 $ 204,779 $ — Unrealized gain on investments held in Trust Account (3,956) — — Less: Company’s portion available to be withdrawn to pay taxes (23,497) (129,310) — Less: Company’s portion available to be withdrawn for working capital purposes — (75,469) — Net income allocable to Class A common stock subject to possible redemption $ — $ — $ — Denominator: Weighted Average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 207,000,000 201,682,674 — Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 $ 0.00 $ 0.00 Non-Redeemable Common Stock Numerator: Net Loss minus Net Earnings Net loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Less: Income allocable to Class A common stock subject to possible redemption — — — Non-Redeemable Net Loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Denominator: Weighted Average Non-redeemable Common stock Basic and diluted weighted average shares outstanding, Non-redeemable Common stock 51,750,000 58,496,884 45,000,000 Basic and diluted net loss per share, Non-redeemable Common stock $ (11.38) $ (24.97) $ (0.00) | Net Income (Loss) per Common Share Net income (loss) per common share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. The Company has not considered the effect of the warrants sold in the Public Offering and Private Placement to purchase an aggregate of 84,250,000 shares of common stock in the calculation of diluted loss per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events and the inclusion of such warrants would be anti-dilutive. The Company’s statement of operations includes a presentation of income (loss) per share for Class A common stock subject to possible redemption in a manner similar to the two-class method of income (loss) per ordinary share. Net income (loss) per common share, basic and diluted, for Class A common stock subject to possible redemption is calculated by dividing the proportionate share of income or loss on marketable securities held by the Trust Account by the weighted average number of Class A common stock subject to possible redemption outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable ordinary shares is calculated by dividing the net loss, adjusted for income or loss on marketable securities attributable to Class A common stock subject to possible redemption, by the weighted average number of non-redeemable ordinary shares outstanding for the period. Non-redeemable common stock includes Founder Shares and non-redeemable shares of common stock as these shares do not have any redemption features. Non-redeemable common stock participates in the income or loss on marketable securities based on the non-redeemable shares’ proportionate interest. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): For the Period from April 30, 2020 (inception) through December 31, 2020 Class A Common Stock Subject to Possible Redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 475,781 Unrealized gain on investments held in Trust Account 4,159 Less: Company’s portion available to be withdrawn to pay taxes (193,315) Less: Company’s portion available to be withdrawn for working capital purposes (286,625) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 Non-Redeemable Common Stock Numerator: Net loss minus net earnings Net loss $ (63,467,875) Less: Net income allocable to Class A common stock subject to possible redemption — Non-redeemable net loss $ (63,467,875) Denominator: Weighted average non-redeemable Class B common stock Basic and diluted weighted average shares outstanding, Non-redeemable Class B common stock 62,139,949 Basic and diluted net loss per share, Non-redeemable Class B common stock $ (1.02) | |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times may exceed the Federal Depository Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account. | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage limit of $250,000. The Company has not experienced losses on this account. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature, except for the Company’s derivative instruments (see Note 9). | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. | |
Recent Accounting Standards | Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 on January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements. | Recent Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
SUMMARY OF SIGNIFICANT ACCOU_23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Impaired [Line Items] | |||
Schedule of reconciliation of net income (loss) per common share | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net loss $ (261,726) $ (117,285) $ (1,009,678) $ (246,868) Deemed dividend related to the issuance of Series E convertible preferred shares — — (2,167,332) — Net loss attributable to common shareholders $ (261,726) $ (117,285) $ (3,177,010) $ (246,868) Weighted-average shares outstanding — basic and diluted 13,728,639 8,319,168 13,042,653 8,117,746 Net loss per share: Basic and diluted $ (19.06) $ (14.10) $ (243.59) $ (30.41) | Basic and diluted net loss per share are calculated as follows (in thousands, except per share amounts): Year Ended December 31, 2020 2019 Basic and diluted net loss per share Numerator: Net loss $ (719,380) $ (277,357) Deemed contribution related to repurchase of Series B convertible preferred shares 1,000 — Deemed contribution related to repurchase of Series C convertible preferred shares 12,784 7,935 Net loss attributable to common shareholders $ (705,596) $ (269,422) Denominator: Weighted-average shares outstanding – basic 9,389,540 7,789,421 Effect of dilutive potential common shares from share options, share awards and employee share purchase plan — — Weighted-average shares outstanding – diluted 9,389,540 7,789,421 Net loss per share: Basic $ (75.15) $ (34.59) Diluted $ (75.15) $ (34.59) | |
Churchill Capital Corp IV | |||
Financing Receivable, Impaired [Line Items] | |||
Schedule of reconciliation of net income (loss) per common share | The following table reflects the calculation of basic and diluted net income (loss) per share (in dollars, except per share amounts): For the Period From April 30, 2020 Three Months Six Months (inception) Ended Ended through June 30, June 30, June 30, 2021 2021 2020 Class A common stock subject to possible redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 27,453 $ 204,779 $ — Unrealized gain on investments held in Trust Account (3,956) — — Less: Company’s portion available to be withdrawn to pay taxes (23,497) (129,310) — Less: Company’s portion available to be withdrawn for working capital purposes — (75,469) — Net income allocable to Class A common stock subject to possible redemption $ — $ — $ — Denominator: Weighted Average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 207,000,000 201,682,674 — Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 $ 0.00 $ 0.00 Non-Redeemable Common Stock Numerator: Net Loss minus Net Earnings Net loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Less: Income allocable to Class A common stock subject to possible redemption — — — Non-Redeemable Net Loss $ (588,819,915) $ (1,460,618,073) $ (1,000) Denominator: Weighted Average Non-redeemable Common stock Basic and diluted weighted average shares outstanding, Non-redeemable Common stock 51,750,000 58,496,884 45,000,000 Basic and diluted net loss per share, Non-redeemable Common stock $ (11.38) $ (24.97) $ (0.00) | The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): For the Period from April 30, 2020 (inception) through December 31, 2020 Class A Common Stock Subject to Possible Redemption Numerator: Earnings allocable to Class A common stock subject to possible redemption Interest income $ 475,781 Unrealized gain on investments held in Trust Account 4,159 Less: Company’s portion available to be withdrawn to pay taxes (193,315) Less: Company’s portion available to be withdrawn for working capital purposes (286,625) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted average Class A common stock subject to possible redemption Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 188,268,610 Basic and diluted net income per share, Class A common stock subject to possible redemption $ 0.00 Non-Redeemable Common Stock Numerator: Net loss minus net earnings Net loss $ (63,467,875) Less: Net income allocable to Class A common stock subject to possible redemption — Non-redeemable net loss $ (63,467,875) Denominator: Weighted average non-redeemable Class B common stock Basic and diluted weighted average shares outstanding, Non-redeemable Class B common stock 62,139,949 Basic and diluted net loss per share, Non-redeemable Class B common stock $ (1.02) |
RELATED PARTY TRANSACTION (Tabl
RELATED PARTY TRANSACTION (Tables) - Churchill Capital Corp IV | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transaction [Line Items] | |
Schedule of conversion option for Level 3 of fair value measurement and assumption | February 22, 2021 June 30, March 31, (Initial 2021 2021 Measurement) Underlying warrant value $ 21.26 $ 12.45 $ 39.46 Exercise price $ 1.00 $ 1.00 $ 1.00 Holding period 0.06 0.23 0.34 Risk-free rate 0.04 % 0.03 % 0.03 % Volatility 125 % 125 % 125 % Dividend yield 0.0 % 0.0 % 0.0 % |
Summary of the change in the fair value of conversion option liability | Fair value as of January 1, 2021 $ — Initial measurement on February 22, 2021 57,691,636 Change in fair value (40,517,598) Fair value as of March 31, 2021 17,174,038 Change in fair value 13,220,756 Fair value as of June 30, 2021 $ 30,394,794 |
FAIR VALUE MEASUREMENTS (Tabl_3
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended | 8 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2020 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | The following table sets forth the Company’s financial assets subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of June 30, 2021 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment — Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 34,267 — — 34,267 Total assets $ 34,267 $ 505 $ — $ 34,772 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment– Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash 26,006 — — 26,006 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 | The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2020 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificates of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 11,278 — — 11,278 Restricted cash – long term 14,728 — — 14,728 Total assets $ 26,006 $ 505 $ — $ 26,511 Liabilities: Convertible preferred share warrant liability $ — $ — $ 2,960 $ 2,960 Total liabilities $ — $ — $ 2,960 $ 2,960 The following table sets forth the Company’s financial assets and liabilities subject to fair value measurements on a recurring basis by level within the fair value hierarchy as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Short-term investment− Certificate of deposit $ — $ 505 $ — $ 505 Restricted cash – short term 19,767 — — 19,767 Restricted cash – long term 8,200 — — 8,200 Total assets $ 27,967 $ 505 $ — $ 28,472 Liabilities: Convertible preferred share warrant liability $ — $ — $ 1,755 $ 1,755 Contingent forward contracts liability — — 30,844 30,844 Total liabilities $ — $ — $ 32,599 $ 32,599 | |
Schedule of significant inputs | December 31, 2020 Volatility 50.00 % Expected term (in years) 0.5 – 1.5 Risk-free rate 0.09 – 0.12 % Expected dividend rate 0.00 % | As of December 31, 2020 2019 Volatility 50.0 % 55.0 % Expected term (in years) 0.5 – 1.5 2.3 Risk-free rate 0.09 – 0.12 % 1.59 % Expected dividend rate 0.0 % 0.0 % | |
Churchill Capital Corp IV | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | June 30, December 31, Description Level 2021 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,290,785 $ 2,070,086,006 Liabilities: Warrant liability – Public Warrants 1 658,260,000 62,928,000 Warrant liability – Private Placement Warrants 3 910,991,000 79,272,500 Conversion option liability 3 30,394,794 — | The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level December 31, 2020 Assets: Marketable securities held in Trust Account 1 $ 2,070,086,006 Liabilities: Warrant Liability – Public Warrants 1 $ 62,928,000 Warrant Liability – Private Placement Warrants 3 $ 79,272,500 | |
Schedule of significant inputs | June 30, March 31, December 31, 2021 2021 2020 Exercise price $ 11.50 $ 11.50 $ 11.50 Stock price $ 28.82 $ 23.18 $ 10.01 Volatility 76.52 % 40 % 30 % Probability of completing a Business Combination 95 % 90 % 80 % Term 5.06 5.23 5.33 Risk-free rate 0.88 % 0.97 % 0.50 % Dividend yield 0.0 % 0.0 % 0.0 % | As of issuance and December 31, 2020, the estimated fair value of Warrant Liability — Private Placement Warrants were determined using a Black-Scholes valuation and based on the following significant inputs: At As of December 31, issuance 2020 Exercise price $ 11.50 $ 11.50 Stock price $ 9.80 $ 10.01 Volatility 19.8 % 30 % Probability of completing a Business Combination 80.0 % 80 % Term 5.33 5.33 Risk-free rate 0.34 % 0.50 % Dividend yield 0.0 % 0.0 % | |
Schedule of changes in the fair value of warrant liabilities | Private Placement Warrants January 1, 2021 $ 79,272,500 Change in fair value 454,210,000 Fair value as of March 31, 2021 533,482,500 Change in fair value 377,508,500 Fair value as of June 30, 2021 910,991,000 | The following table presents the changes in the fair value of warrant liabilities: Private Placement Public Warrant Liabilities Fair value as of April 30, 2020 (inception) $ — $ — $ — Initial measurement on July 30, 2020 42,850,000 40,572,000 83,422,000 Change in valuation inputs or other assumptions 36,422,500 22,356,000 58,778,500 Fair value as of December 31, 2020 $ 79,272,500 $ 62,928,000 $ 142,200,500 |
DESCRIPTION OF ORGANIZATION A_4
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) | Jul. 23, 2021shares | Aug. 03, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($)subsidiary$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | Feb. 22, 2021USD ($) | Jun. 30, 2020USD ($) | Apr. 29, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsidiary, Sale of Stock [Line Items] | ||||||||
Issuance of Class B common stock to Sponsor (in shares) | shares | 1,193,226,511 | |||||||
Cash | $ 557,938,000 | $ 614,412,000 | $ 293,896,000 | $ 351,684,000 | ||||
Churchill Capital Corp IV | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Number of subsidiaries | 1 | 1 | ||||||
Gross proceeds from sale of units | $ 2,033,596,400 | |||||||
Number of warrants issued | shares | 41,400,000 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 11.50 | |||||||
Proceeds from sale of Private Placement Warrants | $ 42,850,000 | |||||||
Transaction costs | $ 109,714,885 | |||||||
Deferred underwriting fee payable | $ 72,450,000 | 72,450,000 | ||||||
Working capital requirement fund annual limit | $ 1,000,000 | |||||||
Threshold minimum aggregate fair market value as a percentage of the assets held in the Trust Account | 80.00% | |||||||
Threshold percentage of outstanding voting securities of the target to be acquired by post-transaction company to complete business combination | 50.00% | |||||||
Initial stock redemption price following business combination | $ / shares | $ 10 | |||||||
Minimum net tangible assets upon consummation of the Business Combination | $ 5,000,001 | |||||||
Redemption limit percentage without prior consent | 15 | |||||||
Obligation to redeem Public Shares if entity does not complete a Business Combination (as a percent) | 100.00% | |||||||
Threshold business days for redemption of public shares | 10 days | |||||||
Maximum interest permitted to pay dissolution expenses | $ 100,000 | |||||||
Temporary Equity, Redemption Price Per Share | $ / shares | $ 10 | |||||||
Maximum Percentage Of Shares Eligible From Redemption | 15.00% | |||||||
Dissolution Expenses Payable | $ 100,000 | |||||||
Cash | 1,000,159 | 3,592,857 | $ 172,100 | $ 0 | ||||
Marketable securities held in Trust Account | 2,070,290,785 | 2,070,086,006 | ||||||
Working capital | 3,218,168 | |||||||
Amount deposited in trust account | 290,785 | $ 86,000 | ||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | |||||||
Churchill Capital Corp IV | Initial Public Offering | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Issuance of Class B common stock to Sponsor (in shares) | shares | 207,000,000 | 207,000,000 | ||||||
Number of units issued | shares | 207,000,000 | |||||||
Share price per unit | $ / shares | $ 10 | |||||||
Gross proceeds from sale of units | $ 2,070,000,000 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 11.50 | |||||||
Transaction Cost Related To Issuance Of Common Stock | 109,714,885 | $ 109,714,885 | ||||||
Underwriting Fees | 36,403,600 | |||||||
Underwriting fees | 36,403,600 | |||||||
Deferred underwriting fee payable | 72,450,000 | |||||||
Deferred underwriting fees | 72,450,000 | |||||||
Other Costs Related To Issuance Of Common Stock | 861,285 | |||||||
Other offering costs | 861,285 | |||||||
Payments for investment of cash in Trust Account | $ 2,070,000,000 | |||||||
Churchill Capital Corp IV | Over-Allotment Option | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Issuance of Class B common stock to Sponsor (in shares) | shares | 27,000,000 | 27,000,000 | ||||||
Number of units issued | shares | 27,000,000 | |||||||
Share price per unit | $ / shares | $ 10 | |||||||
Churchill Capital Corp IV | Private Placement | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Number Of warrants issued | shares | 42,850,000 | |||||||
Number of warrants issued | shares | 42,850,000 | |||||||
Warrant issue price | $ / shares | $ 1 | |||||||
Class of warrant or right, exercise price of warrants or rights | $ / shares | $ 1 | |||||||
Proceeds from sale of Private Placement Warrants | $ 42,850,000 | $ 42,850,000 | ||||||
Churchill Capital Corp IV | Churchill Sponsor LLC [Member] | ||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||
Business Combination Aggregate Fair Market Value On Assets Held In Trust Percentage | 80.00% | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 5,000,001 |
SUMMARY OF SIGNIFICANT ACCOU_24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Mar. 27, 2020 | Mar. 26, 2020 | Dec. 22, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2021 | Dec. 31, 2018 |
Summary oF Significant Accounting Policies [Line items] | ||||||||||||
Deferred tax asset | $ 360,573,000 | $ 360,573,000 | $ 174,818,000 | |||||||||
Valuation allowance | 360,573,000 | 360,573,000 | 174,818,000 | |||||||||
Unrecognized tax benefits | $ 65,400,000 | $ 65,400,000 | 42,894,000 | 42,894,000 | 20,635,000 | $ 65,400,000 | $ 11,647,000 | |||||
Income tax expense | 5,000 | $ (28,000) | $ 9,000 | $ (100,000) | $ (188,000) | $ 23,000 | ||||||
Effective tax rate | 35.00% | 21.00% | 21.00% | 21.00% | ||||||||
Purchase of aggregate common stock for diluted loss per share of anti-dilutive | 389,327,467 | 216,881,686 | ||||||||||
Churchill Capital Corp IV | ||||||||||||
Summary oF Significant Accounting Policies [Line items] | ||||||||||||
Interest earned on the Trust Account withdrawn for working capital purposes | 0 | $ 0 | 450,000 | |||||||||
Deferred tax asset | 1,342,000 | 1,342,000 | 593,909 | $ 593,909 | 1,342,000 | |||||||
Valuation allowance | 593,909 | 593,909 | ||||||||||
Unrecognized tax benefits | 0 | 0 | 0 | 0 | 0 | |||||||
Unrecognized tax benefits accrued for interest and penalties | 0 | 0 | 0 | 0 | 0 | |||||||
Income tax expense | $ 1,962 | $ 25,540 | $ 81,422 | |||||||||
Effective tax rate | 0.00% | 0.00% | 21.00% | |||||||||
Business interest limitation, percentage | 50.00% | 30.00% | ||||||||||
Purchase of aggregate common stock for diluted loss per share of anti-dilutive | 84,250,000 | |||||||||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | $ 250,000 | $ 250,000 | $ 250,000 | |||||||
Churchill Capital Corp IV | If Underwriters Do Not Exercise Overallotment Option [Member] | ||||||||||||
Summary oF Significant Accounting Policies [Line items] | ||||||||||||
Purchase of aggregate common stock for diluted loss per share of anti-dilutive | 84,250,000 |
SUMMARY OF SIGNIFICANT ACCOU_25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net income (loss) per share (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Non-Redeemable Common Stock Numerator: Net loss minus net earnings | ||||||||||
Net loss | $ (261,726,000) | $ (117,285,000) | $ (1,009,678,000) | $ (246,868,000) | $ (719,380,000) | $ (277,357,000) | ||||
Non-redeemable Net loss | $ (261,726,000) | $ (117,285,000) | $ (3,177,010,000) | $ (246,868,000) | $ (705,596,000) | $ (269,422,000) | ||||
Denominator: Weighted average non-redeemable Common stock | ||||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable Common stock | 13,728,639 | 8,319,168 | 13,042,653 | 8,117,746 | 9,389,540 | 7,789,421 | ||||
Basic and diluted net loss per share, Non-redeemable Common stock | $ (19.06) | $ (14.10) | $ (243.59) | $ (30.41) | $ (75.15) | $ (34.59) | ||||
Churchill Capital Corp IV | ||||||||||
Numerator: Earnings allocable to Class A common stock subject to possible redemption | ||||||||||
Interest income | $ 27,453 | $ 204,779 | $ 475,781 | |||||||
Unrealized gain on investments held in Trust Account | (3,956) | 4,159 | ||||||||
Less: Company's portion available to be withdrawn to pay taxes | $ (23,497) | (129,310) | 193,315 | |||||||
Less: Company's portion available to be withdrawn for working capital purposes | $ (75,469) | $ 286,625 | ||||||||
Denominator: Weighted average Class A common stock subject to possible redemption | ||||||||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to redemption | 207,000,000 | 191,473,711 | 191,473,711 | 201,682,674 | 188,268,610 | |||||
Basic and diluted net income per share, Class A common stock subject to redemption | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Non-Redeemable Common Stock Numerator: Net loss minus net earnings | ||||||||||
Net loss | $ (1,000) | $ (588,819,915) | $ (54,303,650) | $ (54,304,650) | $ (1,460,618,073) | $ (63,467,875) | ||||
Non-redeemable Net loss | $ (1,000) | $ (588,819,915) | $ (1,460,618,073) | $ (63,467,875) | ||||||
Denominator: Weighted average non-redeemable Common stock | ||||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable Common stock | 45,000,000 | 51,750,000 | 59,043,747 | 54,862,784 | 58,496,884 | 62,139,949 | ||||
Basic and diluted net loss per share, Non-redeemable Common stock | $ 0 | $ (11.38) | $ (0.92) | $ (0.99) | $ (24.97) | $ (1.02) |
PUBLIC OFFERING (Details)
PUBLIC OFFERING (Details) - $ / shares | Jul. 23, 2021 | Aug. 03, 2020 | Dec. 31, 2020 |
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of Class B common stock to Sponsor (in shares) | 1,193,226,511 | ||
Churchill Capital Corp IV | |||
Subsidiary, Sale of Stock [Line Items] | |||
Exercise price of warrants | $ 11.50 | ||
Number of warrants issued | 41,400,000 | ||
Churchill Capital Corp IV | Initial Public Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of Class B common stock to Sponsor (in shares) | 207,000,000 | 207,000,000 | |
Number of units issued | 207,000,000 | ||
Share price per unit | $ 10 | ||
Number of shares in a unit | 1 | ||
Number of warrants in a unit | 0.2 | ||
Number of shares issuable per warrant | 1 | ||
Exercise price of warrants | $ 11.50 | ||
Churchill Capital Corp IV | Initial Public Offering | Public Warrants | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units issued | 41,400,000 | ||
Number of warrants in a unit | 0.2 | ||
Churchill Capital Corp IV | Over-Allotment Option | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of Class B common stock to Sponsor (in shares) | 27,000,000 | 27,000,000 | |
Number of units issued | 27,000,000 | ||
Share price per unit | $ 10 | ||
Unit price | $ 10 | ||
Class A Common Stock | Churchill Capital Corp IV | Initial Public Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of Class B common stock to Sponsor (in shares) | 207,000,000 | ||
Number of units issued | 207,000,000 | ||
Number of shares in a unit | 1 | ||
Class A Common Stock | Churchill Capital Corp IV | Initial Public Offering | Public Warrants | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of shares issuable per warrant | 1 | ||
Exercise price of warrants | $ 11.50 |
PRIVATE PLACEMENT (Details)_2
PRIVATE PLACEMENT (Details) - Churchill Capital Corp IV - USD ($) | Aug. 03, 2020 | Dec. 31, 2020 |
Class of Warrant or Right [Line Items] | ||
Number of warrants issued | 41,400,000 | |
Aggregate purchase price | $ 42,850,000 | |
Exercise price of warrant | $ 11.50 | |
Private Placement | ||
Class of Warrant or Right [Line Items] | ||
Number Of warrants issued | 42,850,000 | |
Number of warrants issued | 42,850,000 | |
Warrant issue price | $ 1 | |
Aggregate purchase price | $ 42,850,000 | $ 42,850,000 |
Exercise price of warrant | $ 1 | |
Class A Common Stock | Private Placement | ||
Class of Warrant or Right [Line Items] | ||
Number of shares issuable per warrant | 1 | |
Exercise price of warrant | $ 11.50 |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details) | Jul. 23, 2021shares | May 28, 2021USD ($) | Feb. 22, 2021USD ($)$ / shares | Aug. 03, 2020USD ($)shares | Jul. 30, 2020USD ($)$ / sharesshares | Jul. 27, 2020$ / sharesshares | Jul. 14, 2020$ / sharesshares | May 22, 2020USD ($)shares | May 13, 2020USD ($) | Apr. 02, 2019USD ($) | Mar. 31, 2021USD ($)shares | Feb. 28, 2021USD ($) | Jun. 30, 2020USD ($)shares | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2020$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020 |
Issuance of Class B common stock (in shares) | shares | 1,193,226,511 | ||||||||||||||||||||||
Common Stock, Shares, Issued | shares | 13,917,981 | 13,917,981 | 10,889,451 | 10,889,451 | 8,051,722 | ||||||||||||||||||
Common stock, shares, outstanding | shares | 13,917,981 | 13,917,981 | 10,889,451 | 10,889,451 | 8,051,722 | ||||||||||||||||||
Debt conversion, original debt, amount | $ 271,984,000 | ||||||||||||||||||||||
Interest expense on conversion option asset | $ 30,000 | $ 1,000 | $ 35,000 | $ 10,000 | $ 64,000 | $ 8,547,000 | |||||||||||||||||
Churchill Capital Corp IV | |||||||||||||||||||||||
Issuance of Class B common stock | $ 25,000 | $ 25,000 | |||||||||||||||||||||
Fees incurred for services | 250,000 | ||||||||||||||||||||||
Initial public offering cost | $ 600,000 | ||||||||||||||||||||||
Repayment of promissory note - related party | $ 550,000 | 152,900 | 550,000 | ||||||||||||||||||||
Debt conversion, original debt, amount | $ 1,500,000 | 1,500,000 | |||||||||||||||||||||
Conversion price | $ / shares | $ 1 | $ 1 | $ 1 | ||||||||||||||||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | ||||||||||||||||||||||
Amounts borrowed | $ 300,000 | $ 1,500,000 | 550,000 | ||||||||||||||||||||
Interest expense on conversion option asset | $ 900,000 | 1,200,000 | |||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||||||||
Beginning Balance | $ 142,200,500 | 17,174,038 | 142,200,500 | ||||||||||||||||||||
Initial measurement on February 22, 2021 | $ 57,691,636 | ||||||||||||||||||||||
Change in fair value | $ (40,517,598) | 13,220,756 | |||||||||||||||||||||
Ending Balance | $ 17,174,038 | $ 30,394,794 | 30,394,794 | $ 142,200,500 | $ 142,200,500 | ||||||||||||||||||
Interest expense - excess fair value of conversion liability | $ 56,191,636 | ||||||||||||||||||||||
Churchill Capital Corp IV | Probability of completing a Business Combination | |||||||||||||||||||||||
Input | 80 | 90 | 95 | 95 | 80 | 80 | |||||||||||||||||
Churchill Capital Corp IV | Initial Public Offering | |||||||||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 207,000,000 | 207,000,000 | |||||||||||||||||||||
Initial public offering cost | $ 600,000 | ||||||||||||||||||||||
Repayment of promissory note - related party | $ 550,000 | ||||||||||||||||||||||
Churchill Capital Corp IV | Over-Allotment Option | |||||||||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 27,000,000 | 27,000,000 | |||||||||||||||||||||
Churchill Capital Corp IV | Sponsor | |||||||||||||||||||||||
Weighted average number of shares, common stock subject to repurchase or cancellation | shares | 6,750,000 | 6,750,000 | |||||||||||||||||||||
Equity method investment, ownership percentage | 20.00% | 20.00% | 20.00% | ||||||||||||||||||||
Churchill Capital Corp IV | Sponsor | Over-Allotment Option | |||||||||||||||||||||||
Weighted average number of shares, common stock subject to repurchase or cancellation | shares | 6,750,000 | 6,750,000 | |||||||||||||||||||||
Churchill Capital Corp IV | Administrative Support Agreement | |||||||||||||||||||||||
Management fee expense | $ 50,000 | ||||||||||||||||||||||
Fees incurred for services | $ 50,000 | $ 150,000 | $ 300,000 | ||||||||||||||||||||
Churchill Capital Corp IV | Class A Common Stock | |||||||||||||||||||||||
Common Stock, Shares, Issued | shares | 0 | 0 | 21,656,223 | 21,656,223 | |||||||||||||||||||
Common stock, shares, outstanding | shares | 0 | 0 | 21,656,223 | 21,656,223 | |||||||||||||||||||
Share price | $ / shares | $ 12 | $ 12 | $ 12 | ||||||||||||||||||||
Churchill Capital Corp IV | Class A Common Stock | Initial Public Offering | |||||||||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 207,000,000 | ||||||||||||||||||||||
Churchill Capital Corp IV | Class A Common Stock | Sponsor | |||||||||||||||||||||||
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | 20 days | ||||||||||||||||||||||
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | 30 days | ||||||||||||||||||||||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 150 days | ||||||||||||||||||||||
Churchill Capital Corp IV | Class B Common Stock | |||||||||||||||||||||||
Issuance of Class B common stock (in shares) | shares | 21,562,500 | 51,750,000 | |||||||||||||||||||||
Issuance of Class B common stock | $ 25,000 | $ 5,175 | |||||||||||||||||||||
Common stock dividends per share | $ / shares | $ 0.20 | $ 0.50 | $ 0.33 | ||||||||||||||||||||
Effected common stock dividend share | shares | 1 | 1 | 1 | ||||||||||||||||||||
Common Stock, Shares, Issued | shares | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | |||||||||||||||||
Common stock, shares, outstanding | shares | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | |||||||||||||||||
Churchill Capital Corp IV | Class B Common Stock | Sponsor | |||||||||||||||||||||||
Restrictions on transfer period of time after business combination completion | 1 year | ||||||||||||||||||||||
Convertible promissory note with Sponsor | Churchill Capital Corp IV | |||||||||||||||||||||||
Maximum borrowing capacity of related party promissory note | 1,500,000 | ||||||||||||||||||||||
Maximum loans convertible into warrants | $ 1,500,000 | ||||||||||||||||||||||
Price of warrants (in dollars per share) | $ / shares | $ 1 | ||||||||||||||||||||||
Amounts borrowed | $ 1,500,000 | ||||||||||||||||||||||
Interest expense on conversion option asset | $ 900,000 | $ 1,200,000 | |||||||||||||||||||||
Remaining balance of the debt discount | 300,000 | ||||||||||||||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||||||||||||||
Interest expense - excess fair value of conversion liability | $ 56,191,636 |
RELATED PARTY TRANSACTIONS - Fa
RELATED PARTY TRANSACTIONS - Fair value measurement and assumptions (Details) - Churchill Capital Corp IV | Jun. 30, 2021Y$ / shares | Mar. 31, 2021USD ($)Y$ / shares | Feb. 22, 2021Y | Dec. 31, 2020$ / shares | Jul. 30, 2020$ / shares |
Exercise price | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | $ / shares | 11.50 | 11.50 | 11.50 | 11.50 | |
Risk-free rate | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 0.88 | 0.97 | 0.50 | 0.34 | |
Volatility | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 76.52 | 40 | 30 | 19.8 | |
Dividend yield | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 0 | 0 | 0 | 0 | |
Level 3 | Underlying warrant value | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 21.26 | 12.45 | 39.46 | ||
Level 3 | Exercise price | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 1 | 1 | 1 | ||
Level 3 | Holding period | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | Y | 0.06 | 0.23 | 0.34 | ||
Level 3 | Risk-free rate | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 0.04 | 0.03 | 0.03 | ||
Level 3 | Volatility | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 125 | 125 | 125 | ||
Level 3 | Dividend yield | |||||
Related Party Transaction [Line Items] | |||||
Derivative Liability, Measurement Input | 0 | 0 | 0 |
COMMITMENTS AND CONTINGENCIE_12
COMMITMENTS AND CONTINGENCIES (Details) - Churchill Capital Corp IV - USD ($) | Feb. 20, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred fee per unit | $ 0.35 | ||
Deferred Underwriting Fees Payable Per Unit | $ 0.35 | ||
Deferred underwriting fee payable | $ 72,450,000 | ||
Deferred Underwriting Discount Shares | 19,982,000 | $ 19,982,000 | |
Deferred Underwriting Upfront Payment | 3,996,400 | 3,996,400 | |
Reimbursement of expenses payable | 1,000,000 | 1,000,000 | |
Transaction fee | $ 6,000,000 | ||
placement fee | 500,000 | ||
Total expenses | $ 125,000 | ||
Legal fees | 6,487,154 | $ 2,152,960 | |
Diligence fees | $ 1,499,780 |
COMMITMENTS AND CONTINGENCIE_13
COMMITMENTS AND CONTINGENCIES - Additional information (Details) | Jul. 23, 2021$ / sharesshares | Feb. 22, 2021USD ($)D$ / sharesshares | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2021$ / shares | Feb. 20, 2021USD ($) | Jul. 30, 2020$ / shares | Dec. 31, 2019$ / shares |
Par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Number of shares issued | shares | 1,193,226,511 | |||||||
Churchill Capital Corp IV | ||||||||
Values of shares issued | $ | $ 25,000 | $ 25,000 | ||||||
Fee payable to service provider upon the consummation of a Business Combination | $ | $ 6,000,000 | |||||||
Fee payable to service provider upon consummation of the financing | $ | 500,000 | |||||||
Threshold maximum out-of-pocket expenses | $ | $ 125,000 | |||||||
Churchill Capital Corp IV | PIPE Subscription Agreement | PIPE Investors | ||||||||
Number of shares issued | shares | 166,666,667 | |||||||
Share price | $ 15 | |||||||
Values of shares issued | $ | $ 2,500,000,005 | |||||||
Churchill Capital Corp IV | Merger Agreement with Merger Sub and Atieva | ||||||||
Consideration | $ | $ 11,750,000,000 | |||||||
Number of business days prior to closing date considered for determination of Equity Value | 2 | |||||||
Class A Common Stock | ||||||||
Par value (in dollars per share) | $ 0.0001 | |||||||
Class A Common Stock | Churchill Capital Corp IV | ||||||||
Par value (in dollars per share) | $ 0.0001 | 0.0001 | $ 0.0001 | |||||
Share price | $ 12 | $ 12 | ||||||
Class A Common Stock | Churchill Capital Corp IV | Common Stock Subscription Agreements | PIPE Investors | ||||||||
Share price | $ 15 | |||||||
Values of shares issued | $ | $ 2,500,000,000 | |||||||
Class A Common Stock | Churchill Capital Corp IV | Merger Agreement with Merger Sub and Atieva | ||||||||
Par value (in dollars per share) | $ 0.0001 | |||||||
Merger consideration (in dollars per share) | $ 10 | |||||||
Lucid Series D preferred stock | Churchill Capital Corp IV | Voting And Support Agreement | PIPE Investors | ||||||||
Number of shares issued | shares | 204,148,825 | |||||||
Lucid Series E preferred stock | Churchill Capital Corp IV | Voting And Support Agreement | PIPE Investors | ||||||||
Number of shares issued | shares | 113,877,589 |
STOCKHOLDERS' EQUITY (Details_2
STOCKHOLDERS' EQUITY (Details) | 6 Months Ended | 8 Months Ended | |||||||
Jun. 30, 2021USD ($)Vote$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Jul. 23, 2021$ / shares | Mar. 31, 2021shares | Feb. 28, 2021shares | Sep. 30, 2020shares | Aug. 03, 2020USD ($)shares | Jul. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Temporary Equity, Shares Outstanding | 437,182,072 | 362,011,991 | 190,084,166 | ||||||
Common Stock, Shares Authorized | 498,017,734 | 450,000,098 | 498,017,734 | 335,130,459 | |||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common Stock, Shares, Issued | 13,917,981 | 10,889,451 | 8,051,722 | ||||||
Common Stock, Shares, Outstanding | 13,917,981 | 10,889,451 | 8,051,722 | ||||||
Class A common stock subject to possible redemption | 437,182,072 | 362,011,991 | 190,084,166 | ||||||
Churchill Capital Corp IV | |||||||||
Temporary Equity, Shares Outstanding | 185,343,777 | 186,248,002 | 191,473,711 | ||||||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | ||||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 | ||||||
Gross proceeds from sale of units | $ | $ 2,033,596,400 | ||||||||
Class A common stock subject to possible redemption | 185,343,777 | 186,248,002 | 191,473,711 | ||||||
Churchill Sponsor LLC [Member] | Churchill Capital Corp IV | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ | $ 5,000,001 | ||||||||
Sponsor | Churchill Capital Corp IV | |||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||
Class A Common Stock | |||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||||||
Class A Common Stock | Churchill Capital Corp IV | |||||||||
Temporary Equity, Shares Outstanding | 207,000,000 | 185,343,777 | |||||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | |||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | 1 | 1 | |||||||
Common Stock, Shares, Issued | 0 | 21,656,223 | |||||||
Common Stock, Shares, Outstanding | 0 | 21,656,223 | |||||||
Class A common stock subject to possible redemption | 207,000,000 | 185,343,777 | |||||||
Class A Common Stock Subject to Redemption | Churchill Capital Corp IV | |||||||||
Temporary Equity, Shares Outstanding | 207,000,000 | 185,343,777 | |||||||
Shares issued, price per share | $ / shares | $ 10 | ||||||||
Gross proceeds from sale of units | $ | $ 2,070,000,000 | ||||||||
Class A common stock subject to possible redemption | 207,000,000 | 185,343,777 | |||||||
Class A Common Stock Subject to Redemption | Churchill Sponsor LLC [Member] | Churchill Capital Corp IV | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ | $ 5,000,001 | ||||||||
Class A Common Stock Not Subject to Redemption | Churchill Capital Corp IV | |||||||||
Common Stock, Shares Authorized | 400,000,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | ||||||||
Common Stock, Shares, Issued | 21,656,223 | ||||||||
Common Stock, Shares, Outstanding | 0 | 21,656,223 | |||||||
Class B Common Stock | Churchill Capital Corp IV | |||||||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | ||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | 1 | 1 | |||||||
Common Stock, Shares, Issued | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 | |||||
Common Stock, Shares, Outstanding | 51,750,000 | 51,750,000 | 51,750,000 | 51,750,000 |
WARRANT LIABILITY (Details)_2
WARRANT LIABILITY (Details) - Churchill Capital Corp IV | 6 Months Ended | 8 Months Ended |
Jun. 30, 2021D$ / shares | Dec. 31, 2020D$ / shares | |
Class of Warrant or Right [Line Items] | ||
Public Warrants exercisable term after the completion of a business combination | 30 days | |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Public Warrants exercisable term after the completion of a business combination | 30 days | 30 days |
Public Warrants exercisable term from the closing of the initial public offering | 12 months | 12 months |
Expiration period of warrants | 5 years | 5 years |
Threshold period for filling registration statement after business combination | 15 days | |
Maximum threshold period for registration statement to become effective after business combination | 60 days | 60 days |
Redemption price of outstanding warrants | $ 0.01 | |
Redemption period | 30 days | |
Share Price | $ 18 | |
Minimum threshold written notice period for redemption of public warrants | 30 days | 30 days |
Threshold trading days for redemption of public warrants | D | 20 | |
Public Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | ||
Class of Warrant or Right [Line Items] | ||
Redemption price of outstanding warrants | $ 0.01 | |
Redemption period | 30 days | |
Minimum threshold written notice period for redemption of public warrants | 30 days | |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 | |
Threshold trading days for redemption of public warrants | D | 20 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details) - Churchill Capital Corp IV - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Liabilities: | |||
Warrant liability | $ 30,394,794 | $ 17,174,038 | $ 142,200,500 |
Recurring | Level 1 | |||
Assets: | |||
Marketable securities held in Trust Account | 2,070,290,785 | 2,070,086,006 | |
Recurring | Level 3 | |||
Liabilities: | |||
Warrant liability | 30,394,794 | ||
Public Warrants | |||
Liabilities: | |||
Warrant liability | 62,928,000 | ||
Public Warrants | Recurring | Level 1 | |||
Liabilities: | |||
Warrant liability | 658,260,000 | 62,928,000 | |
Private Placement Warrants | |||
Liabilities: | |||
Warrant liability | 910,991,000 | $ 533,482,500 | 79,272,500 |
Private Placement Warrants | Recurring | Level 3 | |||
Liabilities: | |||
Warrant liability | $ 910,991,000 | $ 79,272,500 |
FAIR VALUE MEASUREMENTS - Sig_2
FAIR VALUE MEASUREMENTS - Significant inputs (Details) - Churchill Capital Corp IV | Jun. 30, 2021$ / sharesY | Mar. 31, 2021Y$ / shares | Dec. 31, 2020USD ($) | Dec. 31, 2020 | Dec. 31, 2020$ / shares | Dec. 31, 2020Y | Jul. 30, 2020$ / sharesY |
Exercise price | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 11.50 | 11.50 | 11.50 | 11.50 | |||
Stock price | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 28.82 | 23.18 | 10.01 | 9.80 | |||
Volatility | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 76.52 | 40 | 30 | 19.8 | |||
Probability of completing a Business Combination | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 95 | 90 | 80 | 80 | 80 | ||
Term | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | Y | 5.06 | 5.23 | 5.33 | 5.33 | |||
Risk-free rate | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 0.88 | 0.97 | 0.50 | 0.34 | |||
Dividend yield | |||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||
Input | 0 | 0 | 0 | 0 |
FAIR VALUE MEASUREMENTS - Cha_2
FAIR VALUE MEASUREMENTS - Changes in the fair value of warrant liabilities (Details) - Churchill Capital Corp IV - USD ($) | 3 Months Ended | 8 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Beginning Balance | $ 17,174,038 | $ 142,200,500 | |
Initial measurement on August 3, 2020 | $ 83,422,000 | ||
Change in fair value | 58,778,500 | ||
Ending Balance | 30,394,794 | 17,174,038 | 142,200,500 |
Public Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Beginning Balance | 62,928,000 | ||
Initial measurement on August 3, 2020 | 40,572,000 | ||
Change in fair value | 22,356,000 | ||
Ending Balance | 62,928,000 | ||
Private Placement Warrants | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Beginning Balance | 533,482,500 | 79,272,500 | |
Initial measurement on August 3, 2020 | 42,850,000 | ||
Change in fair value | 377,508,500 | 454,210,000 | 36,422,500 |
Ending Balance | $ 910,991,000 | $ 533,482,500 | $ 79,272,500 |