Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 30, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | FTC SOLAR, INC. | |
Entity Central Index Key | 0001828161 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FTCI | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-40350 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4816270 | |
Entity Address, Address Line One | 9020 N Capital of Texas Hwy | |
Entity Address, Address Line Two | Suite I-260 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78759 | |
City Area Code | 737 | |
Local Phone Number | 787-7906 | |
Entity Common Stock, Shares Outstanding | 99,810,544 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 49,383 | $ 102,185 |
Accounts receivable, net | 132,230 | 107,548 |
Inventories | 8,918 | 8,860 |
Prepaid and other current assets | 13,762 | 17,186 |
Total current assets | 204,293 | 235,779 |
Operating lease right-of-use assets | 1,622 | 1,733 |
Property and equipment, net | 1,564 | 1,582 |
Other assets | 3,929 | 3,926 |
Total assets | 211,408 | 243,020 |
Current liabilities | ||
Accounts payable | 46,102 | 39,264 |
Accrued expenses | 30,648 | 47,860 |
Income taxes payable | 87 | 47 |
Deferred revenue | 3,100 | 1,421 |
Other current liabilities | 4,523 | 4,656 |
Total current liabilities | 84,460 | 93,248 |
Operating lease liability, net of current portion | 1,190 | 1,340 |
Other non-current liabilities | 5,590 | 5,566 |
Total liabilities | 91,240 | 100,154 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity | ||
Preferred stock par value of $0.0001 per share, 10,000,000 shares authorized; none issued as of March 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock par value of $0.0001 per share, 850,000,000 shares authorized; 99,724,843 and 92,619,641 shares issued and outstanding as of March 31, 2022 and December 30, 2021 | 10 | 9 |
Treasury stock, at cost; 10,762,566 shares as of March 31, 2022 and December 31, 2021 | 0 | 0 |
Additional paid-in capital | 297,119 | 292,082 |
Accumulated other comprehensive income (loss) | 64 | 7 |
Accumulated deficit | (177,025) | (149,232) |
Total stockholders' equity | 120,168 | 142,866 |
Total liabilities and stockholders' equity | $ 211,408 | $ 243,020 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 850,000,000 | 850,000,000 |
Common stock, shares issued | 99,724,843 | 92,619,641 |
Common stock, shares outstanding | 99,724,843 | 92,619,641 |
Treasury stock, shares | 10,762,566 | 10,762,566 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue: | ||
Total revenue | $ 49,553 | $ 65,707 |
Cost of revenue: | ||
Total cost of revenue | 58,840 | 65,588 |
Gross profit (loss) | (9,287) | 119 |
Operating expenses | ||
Research and development | 2,701 | 1,954 |
Selling and marketing | 1,972 | 1,100 |
General and administrative | 13,818 | 5,084 |
Total Operating expenses | 18,491 | 8,138 |
Loss from operations | (27,778) | (8,019) |
Interest expense, net | (295) | (14) |
Gain from disposal of investment in unconsolidated subsidiary | 337 | 0 |
Gain (loss) on extinguishment of debt | 0 | 790 |
Other income (expense) | 19 | 0 |
Loss from unconsolidated subsidiary | 0 | (218) |
Loss before income taxes | (27,717) | (7,461) |
(Provision) benefit for income taxes | (76) | 19 |
Net loss | (27,793) | (7,442) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 57 | (1) |
Comprehensive loss | $ (27,736) | $ (7,443) |
Net loss per share | ||
Basic | $ (0.28) | $ (0.11) |
Diluted | $ (0.28) | $ (0.11) |
Weighted-average common shares outstanding: | ||
Basic | 99,211,792 | 66,875,469 |
Diluted | 99,211,792 | 66,875,469 |
Product | ||
Revenue: | ||
Total revenue | $ 30,968 | $ 56,462 |
Cost of revenue: | ||
Total cost of revenue | 34,963 | 54,996 |
Service | ||
Revenue: | ||
Total revenue | 18,585 | 9,245 |
Cost of revenue: | ||
Total cost of revenue | $ 23,877 | $ 10,592 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | IPO [Member] | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance at Dec. 31, 2020 | $ 7,451 | $ 1 | $ 0 | $ 50,096 | $ (3) | $ (42,643) | ||
Beginning balance (in shares) at Dec. 31, 2020 | 66,155,340 | 0 | 9,896,666 | |||||
Shares issued during the period for vested restricted stock awards, Shares | 1,169,607 | |||||||
Repurchase of treasury stock | (148,440) | 148,440 | ||||||
Issuance of common stock upon exercise of stock options | 39 | 39 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 152,902 | |||||||
Stock-based compensation | 449 | 449 | ||||||
Net Income (loss) | (7,442) | (7,442) | ||||||
Other comprehensive income (loss) | (1) | (1) | ||||||
Ending balance at Mar. 31, 2021 | 496 | $ 1 | $ 0 | 50,584 | (4) | (50,085) | ||
Ending balance (in shares) at Mar. 31, 2021 | 67,329,409 | 0 | 10,045,106 | |||||
Beginning balance at Dec. 31, 2021 | 142,866 | $ 9 | $ 0 | 292,082 | 7 | (149,232) | ||
Beginning balance (in shares) at Dec. 31, 2021 | 92,619,641 | 0 | 10,762,566 | |||||
Shares issued during the period for vested restricted stock awards, Value | $ 1 | (1) | ||||||
Shares issued during the period for vested restricted stock awards, Shares | 5,311,326 | |||||||
Issuance of common stock upon exercise of stock options | 428 | 428 | ||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,793,876 | |||||||
Issuance of common stock (in shares) | 4,455,384 | |||||||
Stock-based compensation | 4,610 | 4,610 | ||||||
Net Income (loss) | (27,793) | (27,793) | ||||||
Other comprehensive income (loss) | 57 | 57 | ||||||
Ending balance at Mar. 31, 2022 | $ 120,168 | $ 10 | $ 0 | $ 297,119 | $ 64 | $ (177,025) | ||
Ending balance (in shares) at Mar. 31, 2022 | 99,724,843 | 0 | 10,762,566 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net loss | $ (27,793) | $ (7,442) | |
Adjustments to reconcile net income (loss) to cash used in operating activities: | |||
Stock-based compensation | 4,610 | 449 | |
Depreciation | 121 | 9 | |
Amortization of debt issuance cost | 173 | 0 | |
Loss from unconsolidated subsidiary | 0 | 218 | |
Gain from disposal of investment in unconsolidated subsidiary | (337) | 0 | |
(Gain) loss on extinguishment of debt | 0 | (790) | |
Warranty provision | 516 | 1,554 | |
Warranty recoverable from manufacturer | (205) | 328 | |
Bad debt expense (credit) | (30) | 58 | |
Deferred income taxes | 0 | (20) | |
Lease expense and other non-cash items | 198 | 0 | |
Impact on cash from changes in operating assets and liabilities: | |||
Accounts receivable, net | (24,652) | (20,230) | |
Inventories | (58) | (2,587) | |
Prepaid and other current assets | 3,440 | 216 | |
Other assets | (40) | (3,649) | |
Accounts payable | 7,258 | 12,913 | |
Accruals and other current liabilities | (17,044) | 8,360 | |
Accrued interest – related party debt | 0 | (207) | |
Deferred revenue | 1,679 | (14,797) | |
Other non-current liabilities | (752) | (206) | |
Lease payments and other, net | (190) | (81) | |
Net cash used in operating activities | (53,106) | (25,904) | $ (132,900) |
Cash flows from investing activities: | |||
Purchases of property and equipment | (523) | (85) | |
Proceeds from disposal of investment in unconsolidated subsidiary | 337 | 0 | |
Net cash used in investing activities: | (186) | (85) | |
Cash flows from financing activities: | |||
Repayments of borrowings | 0 | (1,000) | |
Offering costs paid | 0 | (1,084) | |
Proceeds from stock issuance | 0 | 39 | |
Proceeds from stock option exercises | 428 | 0 | |
Net cash provided by (used in) financing activities | 428 | (2,045) | |
Effect of exchange rate changes on cash and restricted cash | 62 | 1 | |
Net decrease in cash, cash equivalents and restricted cash | (52,802) | (28,033) | |
Cash, cash equivalents and restricted cash at beginning of period | 102,185 | 33,373 | 33,373 |
Cash, cash equivalents and restricted cash at end of period | 49,383 | 5,340 | $ 102,185 |
Supplemental disclosures of cash flow information: | |||
Purchases of property and equipment included in ending accounts payable and accruals | 59 | 67 | |
Increase in offering costs in period end accruals | 0 | 2,019 | |
Commencement of new operating leases | 0 | 246 | |
Cash paid during the period for third party interest | 128 | 40 | |
Cash paid during the period for related party interest | 0 | 207 | |
Cash paid during the period for taxes | $ 7 | $ 0 |
Description of Business
Description of Business | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. Description of business FTC Solar, Inc. (the “Company”, “we”, “our”, or “us”) was founded in 2017 and is incorporated in the state of Delaware. We are a global provider of advanced solar tracker systems, supported by proprietary software and value-added engineering services. Our mission is to provide differentiated products, software, and services that maximize energy generation and cost savings for our customers, and to help facilitate the continued growth and adoption of solar power globally. Trackers significantly increase the amount of solar energy produced at a solar installation by moving solar panels throughout the day to maintain an optimal orientation relative to the sun. Our tracker systems are currently marketed under the Voyager brand name (“Voyager Tracker” or “Voyager”). Voyager is a next-generation two-panel in-portrait single-axis tracker solution that we believe offers industry-leading performance and ease of installation. We have a team of dedicated renewable energy professionals with significant project installation experience focused on delivering cost reductions to our US and worldwide clients across the solar project development and construction cycle. Our solar solutions span a range of applications, including ground mount, tracker, canopy, and rooftop. The Company is headquartered in Austin, Texas, and has international subsidiaries in Australia, India, Singapore, and South Africa. In April 2021, we completed an initial public offering (IPO) of 19,840,000 shares of our common stock receiving proceeds of $ 241.2 million, net of underwriting discounts and commissions, but before offering costs, and began trading on the Nasdaq Global Market under the symbol “FTCI”. Prior to the completion of the IPO, the board of directors and stockholders approved an approximately 8.25-for-1 forward stock split (the “Forward Stock Split”) of the Company’s shares of common stock which became effective on April 28, 2021. Proceeds from the IPO were used for general corporate purposes, with $ 54.2 million used to purchase an aggregate of 4,455,384 shares of our common stock, including shares resulting from the settlement of certain vested restricted stock units (“RSUs”) and exercise of certain options in connection with the IPO at the IPO price, less underwriting discounts and commissions. We are an emerging growth company, as defined in the Jumpstart Our Business Startups (JOBS) Act. Under the JOBS Act, we elected to use the allowed extended transition period to delay adopting new or revised accounting standards until such time as those standards apply to private companies. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of significant accounting policies Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements include the results of the Company and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments have been made that are considered necessary for a fair statement of our financial position as of March 31, 2022, and December 31, 2021, our results of operations for the three months ended March 31, 2022 and 2021 and our cash flows for the three months ended March 31, 2022 and 2021. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited consolidated financial statements but, does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Intercompany balances and transactions have been eliminated in consolidation. Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. On April 28, 2021, we effected an approximately 8.25-for-1 forward split of our issued and outstanding shares of common stock, par value $ 0.0001 per share. As a result of the forward stock split, one (1) share of common stock issued and outstanding was automatically increased to approximately 8.25 shares of issued and outstanding common stock, without any change in the par value per share. All information related to common stock, stock options, restricted stock awards and earnings per share have been retroactively adjusted to give effect to the forward stock split for all periods presented, unless otherwise indicated. We currently operate in one business segment, the manufacturing and servicing of Voyager Tracker . Liquidity We have incurred cumulative losses since inception, resulting in an accumulated deficit of $ 177.0 million at March 31, 2022, and have a history of cash outflows from operations. During the year ended December 31, 2021, and the three months ended March 31, 2022 , we had $ 132.9 million and $ 53.1 million , respectively, of cash outflow from operations. At March 31, 2022, we had $ 49.4 million of cash on hand, $ 119.8 million of working capital and approximately $ 98.1 million of unused borrowing capacity under our existing revolving credit facility. The revolving credit facility includes a financial condition covenant stating we are required to have a minimum liquidity, consisting of cash on hand and unused borrowing capacity, of $ 125.0 million as of each quarter end. After considering this financial condition covenant, we had approximately $ 22.4 million of available liquidity as of March 31, 2022 , in order to retain access to our revolving credit facility. Additionally, we had no long-term borrowings or other material obligations requiring the use of cash as of March 31, 2022. As of May 12, 2022, we have collected approximately $ 62 million of receivables since March 31, 2022, and have a cash balance of approximately $ 71 million. On March 25, 2022, the U.S. Department of Commerce, in response to a petition by Auxin Solar, Inc., initiated an investigation of claims related to alleged circumvention of U.S. antidumping and countervailing duties ("AD/CVD") by solar manufacturers in certain Southeast Asian countries in an effort to determine whether or not solar cells and/or modules made in those Southeast Asian nations use parts originating from China in order to circumvent the AD/CVD tariffs. This decision has resulted in some developers deferring projects later in the year due to the uncertainty of panel supply and costs, which is expected to negatively impact our anticipated revenues and our cash flows. Our costs are affected by certain component costs including steel, motors and micro-chips, as well as transportation costs. Current market conditions that constrain supply of materials and disrupt the flow of materials from international vendors impact the cost of our products and services. These cost increases impact our operating margins. We are taking steps to expand and diversify our manufacturing partnerships and have employed alternative modes of transportation to mitigate the impact of the current headwinds in the global supply chain and logistics markets. Additionally, we have contracted with a consulting firm to support us with improvements to our processes and performance in various areas including design, sourcing, logistics, pricing, software and standard configuration. For further information regarding this consulting firm, see "Note 13. Related party transactions". In accordance with ASC 205-40, Going Concern, we have evaluated whether there are conditions and events, considered in the aggregate, which raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued. Based on our recurring losses from operations, impact of the U.S. Department of Commerce investigation of AD/CVD circumvention claims, the expectation of continued operating losses during 2022, and the need to improve profitability and cash flow to finance our future operations, we determined that there is substantial doubt about our ability to continue as a going concern within twelve months of the issuance date of the accompanying consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty and assumes we will continue as a going concern through the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. As we continue to address these current market challenges, management has also undertaken the following actions: • we are in discussions with the lenders of our revolving credit facility to lower the minimum required liquidity amount, which, if successful, could result in additional liquidity; • we have initiated a program, as described above, with third party assistance, to improve our operating performance and increase our gross margins; • we are freezing non-essential hiring, reducing our travel expenses, decreasing the future use of consultants and deferring non-critical initiatives; • we are negotiating improved payment terms with both our customers and vendors; • we have initiated frequent, consistent communication with our customers, which has allowed us to resolve issues preventing timely collection of certain outstanding receivables subsequent to March 31, 2022; and • we are exploring options to obtain additional sources of capital. Should we not be successful in executing the above initiatives, or in reducing our historical levels of use of cash to fund our operations, or should market conditions deteriorate significantly from what we currently expect, or regulatory and international trade policies become more stringent as a result of findings from the Department of Commerce's AD/CVD investigation, or other factors, we may need to issue additional debt or obtain new equity financing to fund our operations for the next twelve months. We may be unable to obtain any desired additional financing on terms favorable to us, or at all, depending on market and other conditions. The ability to raise additional financing depends on numerous factors that are outside of our control, including general economic and market conditions, the health of financial institutions, investors' and lenders' assessments of our prospects and the prospects of the solar industry in general. Use of estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenue and expenses during the period. Estimates are used for calculating the measure of progress of Voyager tracker projects and deriving the standalone selling prices of the individual performance obligations when determining amounts to recognize for revenue, estimating allowances for doubtful accounts and slow-moving and obsolete inventory, determining useful lives of noncurrent assets and the estimated fair value of those assets for impairment assessments, and estimating the fair value of investments, stock compensation awards, warranty liabilities and federal and state taxes and contingencies. We base our estimates on historical experience and anticipated results, trends, and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable. We regularly maintain cash balances with various financial institutions that exceed federally insured amounts, but we have experienced no losses associated with these amounts to date. The Company extends credit to customers in the normal course of business, often without requiring collateral. The Company performs credit analyses and monitors the financial health of its customers to reduce credit risk. The Company’s accounts receivables are derived from revenue earned from customers primarily located in the U.S. and in the Asia Pacific region. No country other than the U.S. accounts for 10% or more of our revenue. Most of our customers are project developers, solar asset owners and engineering, procurement and construction (“EPC”) contractors that design and build solar energy projects. Often times, a small number of customers account for a significant portion of our outstanding receivables at period end and our total revenue for the year. Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. We regularly maintain cash balances that exceed federally insured amounts, but we have experienced no losses associated with these amounts to date. Accounts receivable, net Trade receivables are recorded at invoiced amounts, net of allowances for doubtful accounts if applicable, and do not bear interest. We generally do not require collateral from our customers; however, in certain circumstances, we may require letters of credit, other collateral, additional guarantees or advance payments. The allowance for doubtful accounts is based on our assessment of the collectability of our customer accounts. We regularly review our accounts receivable that remain outstanding past their applicable payment terms and establish allowances or make potential write-offs by considering certain factors such as historical experience, industry data, credit quality, age of balances and current economic conditions that may affect a customers’ ability to pay. Receivables arising from revenue recognized in excess of billings represents our unconditional right to consideration before customers are invoiced due to the level of progress obtained as of period end on our contracts to install Voyager tracker systems and related equipment. Further information may be found below in our revenue recognition policy. Inventories, net Inventories are stated at the lower of cost or net realizable value, with costs computed on a first-in, first-out basis. The Company periodically reviews its inventories for excess and obsolete items and adjusts carrying costs to estimated net realizable values when they are determined to be less than cost. Warranty Typically, the sale of Voyager Tracker projects includes parts warranties to customers as part of the overall price of the product. We provide standard assurance type warranties for our products for periods generally ranging from five to ten years. We record a provision for estimated warranty expenses in cost of sales, net of amounts recoverable from manufacturers under their warranty obligations to us. We do not maintain general or unspecified reserves; all warranty reserves are related to specific projects. All actual or estimated material costs incurred for warranty services in subsequent periods are charged to those established reserves. While we periodically monitor our warranty activities and claims, if actual costs incurred were to be different from our estimates, we would recognize adjustments to our warranty reserves in the period in which those differences arise or are identified. Stock-based compensation We recognize compensation expense for all share-based payment awards made, including stock options and restricted stock, based on the estimated fair value of the award on the grant date, in the accompanying consolidated statement of operations and comprehensive loss. We calculate the fair value of stock options using the Black-Scholes Option-Pricing model, while the fair value of restricted stock grants is based on the estimated fair value of the Company's common stock on the date of grant. Since completion of our IPO, we consider the closing price of our stock, as reported on the Nasdaq Global Market, to be the fair value of our stock on the grant date. Forfeitures are accounted for as they occur. For service-based awards, stock-based compensation is recognized using the straight-line attribution approach over the requisite service period. For performance-based awards, stock-based compensation is recognized based on graded vesting over the requisite service period when the performance condition is probable of being achieved. Revenue recognition Product revenue includes revenue from the sale of Voyager Tracker and customized components of Voyager Tracker, individual part sales for certain specific transactions, and sale of term-based software licenses. Term-based software licenses are deployed on the customers’ own servers and have significant standalone functionality. Service revenue includes revenue from shipping and handling services, subscription fees from licensing subscription services, and maintenance and support services in connection with the term-based software licenses. Our subscription-based enterprise licensing model typically has contract terms ranging from one to two years and consists of subscription fees from the licensing of subscription services. Our hosted on-demand service arrangements do not provide customers with the right to take possession of the software supporting the hosted services. Support services include ongoing security updates, upgrades, bug fixes, and maintenance. We recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Identify the contract with a customer: A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the products and services to be transferred and identifies the payment terms related to these products and services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for products and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. In assessing the recognition of revenue, we also evaluate whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations which could change the amount of revenue and profit (loss) recorded in a period. Change orders may include changes in specifications or design, manner of performance, equipment, materials, scope of work, and/or the period of completion of the project. We analyze change orders to determine if they should be accounted for as a modification to an existing contract or a new stand-alone contract. Contracts we enter into with our customers for sale of Voyager Trackers are generally under two different types of arrangements: (1) purchase agreements and equipment supply contracts (“Purchase Agreements”) and (2) sale of individual parts of the Voyager Tracker. Change orders from our customers are generally modifications to existing contracts and are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. Identify the performance obligations in the contract: We enter into contracts that can include various combinations of products and services, which are either capable of being distinct and accounted for as separate performance obligations or as one performance obligation since the majority of tasks and services are part of a single project or capability. However, determining whether products or services are considered distinct performance obligations that should be accounted for separately versus together may sometimes require significant judgment. Our Purchase Agreements typically include two performance obligations- 1) Voyager Tracker or customized components of Voyager Tracker, and 2) shipping and handling services. The deliverables included as part of the Voyager Tracker are predominantly accounted for as one performance obligation, as these deliverables are part of a combined promise to deliver a project. The revenue for shipping and handling services will be recognized over time based on progress in meeting shipping terms of the arrangements, as this faithfully depicts the Company’s performance in transferring control. Sale of individual parts of Voyager Tracker for certain specific transactions includes multiple performance obligations consisting of individual parts of the Voyager Tracker. Revenue is recognized for parts sales at a point in time when the obligations under the terms of the contract with our customer are satisfied. Generally, this occurs with the transfer of control of the asset, which is in line with shipping terms. Determine the transaction price: The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring services to the customer. Such amounts are typically stated in the customer contract, and to the extent that we identify variable consideration, we will estimate the variable consideration at the onset of the arrangement as long as it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The majority of our contracts do not contain variable consideration provisions as a continuation of the original contract. None of our contracts contain a significant financing component. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Allocate the transaction price to performance obligations in the contract: Once we have determined the transaction price, we allocate the total transaction price to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the good(s) or service(s) to the customer. We allocate the transaction price to each performance obligation identified in the contract on a relative standalone selling price basis. We use the expected cost-plus margin approach based on hardware, labor, and related overhead cost to estimate the standalone selling price of the Voyager Tracker, customized components of Voyager Tracker, and individual parts of Voyager Tracker for certain specific transactions. We use the adjusted market assessment approach for all other performance obligations except shipping, handling, and logistics. For shipping, handling, and logistics performance obligations, we use a residual approach to calculate the standalone selling price, because of the nature of the highly variable and broad range of prices we charge to various customers for this performance obligation in the contracts. Recognize revenue when or as the Company satisfies a performance obligation: For each performance obligation identified, we determine at contract inception whether we satisfy the performance obligation over time or at a point in time. Voyager Tracker and customized components of Voyager Tracker performance obligations in the contract are satisfied over-time as work progresses for its custom assembled Voyager Tracker, utilizing an input measure of progress determined by cost-to-cost measures on these projects as this faithfully depicts our performance in transferring control. Additionally, our performance does not create an asset with an alternative use, due to the highly customized nature of the product, and we have an enforceable right to payment for performance completed to date. Our performance obligations for individual part sales for certain specific transactions are recognized point-in-time as and when control transfers based on the Incoterms for the contract. Our performance obligations for term-based software licenses are recognized point-in-time as and when control transfers, either upon delivery to the customer or the software license start date, whichever is later. Our performance obligation for shipping and handling services is satisfied over-time as the services are delivered over the term of the contract. We recognize subscription services sales/other services on a straight-line basis over the contract period. With regard to support revenue, a time-elapsed method is used to measure progress because we transfer control evenly over the contractual period. Accordingly, the fixed consideration related to support revenue is generally recognized on a straight-line basis over the contract term. Contract assets and liabilities: The timing of revenue recognition, billing, and cash collection results in the recognition of accounts receivable, unbilled receivables for revenue recognized in excess of billing, and deferred revenue in the Consolidated Balance Sheets. We may receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities, which are reflected as “deferred revenue” on our Consolidated Balance Sheets. Cost of revenue consists primarily of costs related to raw materials, freight and delivery, product warranty, and personnel costs (salaries, bonuses, benefits, and stock-based compensation). Personnel costs in cost of revenue include both direct labor costs as well as costs attributable to any individuals whose activities relate to the procurement, installment, and delivery of the finished product and services. Deferred cost of revenue results from the timing differences between the costs incurred in advance of the satisfaction of all revenue recognition criteria consistent with our revenue recognition policy. Revision of previously issued financial statements In connection with preparation of our consolidated financial statements as of and for the year ended December 31, 2021, we identified an error in the classification of offering costs in the statement of cash flows for the three months ended March 31, 2021. Specifically, we incorrectly classified $ 1.1 million of offering costs paid as an operating cash outflow instead of a financing cash outflow in our previously issued cash flow statement for the three months ended March 31, 2021. Although we have concluded that this error is immaterial to the previously issued financial statements, we have corrected this error in the accompanying condensed consolidated statements of cash flows by revising the operating and financing cash outflows previously reported in our cash flow statement for the three months ended March 31, 2021. Recent accounting pronouncements not yet adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and requires the use of an expected loss model in place of the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The update to the standard is effective for the Company for its fiscal year beginning after December 15, 2022, to the extent the Company remains an emerging growth company, and early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements. |
Accounts receivable, net
Accounts receivable, net | 3 Months Ended |
Mar. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts receivable, net | 3. Accounts receivable, net Accounts receivable consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Trade receivables $ 100,285 $ 38,597 Revenue recognized in excess of billings 40,663 72,676 Other receivables 148 147 Total 141,096 111,420 Allowance for doubtful accounts ( 8,866 ) ( 3,872 ) Accounts receivable, net $ 132,230 $ 107,548 During the three months ended March 31, 2022, we recognized a $ 5.0 million reserve against our revenue for a potential customer concession. Included in total receivables above are amounts billed under retainage provisions totaling $ 5.1 million and $ 11.6 million as of March 31, 2022, and December 31, 2021 , respectively, which are due within the upcoming year. |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 4. Inventories, net Inventories consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Finished goods $ 9,008 $ 8,950 Allowance for slow-moving and obsolete inventory ( 90 ) ( 90 ) Total $ 8,918 $ 8,860 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid Expenses and Other Current Assets | 5. Prepaid and other current assets Prepaid and other current assets consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Vendor deposits $ 10,700 $ 13,098 Prepaid expenses 1,308 2,301 Prepaid taxes 290 269 Surety collateral 334 460 Other current assets 1,130 1,058 Total $ 13,762 $ 17,186 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | 6. Leases We lease office and warehouse space in various locations, including our corporate headquarters in Austin, Texas. Additionally, we lease space for an applications laboratory and have a membership in a collaborative research facility in Colorado. All of our manufacturing is outsourced to contract manufacturing partners, and we currently do not own or lease any manufacturing facilities. Our lease expense consisted of the following: Three months ended March 31, (in thousands) 2022 2021 Operating lease cost $ 198 $ 78 Short-term lease cost 115 63 Total lease cost $ 313 $ 141 Reported in: Cost of revenue $ 193 $ 61 Research and development 8 6 Selling and marketing — 1 General and administrative 112 73 Total lease cost $ 313 $ 141 Future remaining operating lease payment obligations were as follows: (in thousands) March 31, 2022 $ 424 2023 520 2024 511 2025 446 2026 55 Thereafter — Total lease payments 1,956 Less: imputed interest ( 315 ) Present value of operating lease liabilities $ 1,641 Current portion of operating lease liability $ 451 Operating lease liability, net of current portion 1,190 Present value of operating lease liabilities $ 1,641 |
Property and equipment, net
Property and equipment, net | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | 7. Property and equipment, net Property and equipment consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Leasehold improvements $ 22 $ 22 Field equipment 891 833 Information technology equipment 243 182 Tooling 527 543 Capitalized software 250 250 Total 1,933 1,830 Accumulated depreciation ( 369 ) ( 248 ) Property and equipment, net $ 1,564 $ 1,582 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses and Other Current Liabilities Abstract | |
Accrued Expenses and Other Current Liabilities | 8. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Accrued cost of revenue $ 22,623 $ 43,185 Accrued compensation 4,507 981 Other accrued expenses 3,518 3,694 Total accrued expenses $ 30,648 $ 47,860 Warranty reserves $ 3,771 $ 4,032 Current portion of operating lease liability 451 452 Non-federal tax obligations 301 172 Other — — Total other current liabilities $ 4,523 $ 4,656 We provide standard warranties on our hardware products to customers. The liability amount is based on actual historical warranty spending activity by type of product, customer and geographic region, modified by any known differences such as the impact of reliability improvements. Activity by period in the Company's warranty accruals wa s as follows: Three months ended March 31, (in thousands) 2022 2021 Balance at beginning of period $ 9,346 $ 6,811 Warranties issued during the period 516 1,554 Settlements made during the period ( 421 ) ( 1,819 ) Changes in liability for pre-existing warranties ( 205 ) ( 187 ) Balance at end of period $ 9,236 $ 6,359 Accrued warranty balance reported in: Other current liabilities $ 3,771 $ 2,891 Other non-current liabilities 5,465 3,468 Balance at end of period $ 9,236 $ 6,359 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and contingencies The Company may be involved in various claims, lawsuits, investigations, and other proceedings, arising in the normal course of business. The Company accrues a liability when management believes information available prior to the issuance of financial statements indicates it is probable a loss has been incurred as of the date of the financial statements and the amount of loss can be reasonably estimated. The Company adjusts its accruals to reflect the impact of negotiation, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Legal costs are expensed as incurred. On April 21, 2021, FCX Solar, LLC (“FCX”), filed a lawsuit against us in the United States District Court for the Southern District of New York. The complaint alleged breach of contract, fraud and unjust enrichment claims related to a patent license agreement and consulting relationship between FCX and us. FCX sought damages of approximately $ 134 million in the lawsuit. On July 2, 2021, we filed a motion to dismiss the fraud and unjust enrichment claims. On July 16, 2021, FCX filed an amended complaint asserting the same claims as the original complaint. On July 22, 2021, we advised the court that FTC would stand on its motion to dismiss, and at the request of the court, we filed a revised motion citing the amended complaint. FCX filed its response on August 19, 2021, and we filed a reply on September 7, 2021. Oral argument on our motion to dismiss was held on February 3, 2022, and the Court granted our motion on February 7, 2022, dismissing FCX's fraud and unjust enrichment claims and leaving only a claim for breach of a license agreement. On April 15, 2022, FCX filed a motion to amend its complaint to add two additional claims for breach of the license agreement and to remove the dismissed claims, including its request for damages of approximately $134 million. We intend to oppose FCX's motion to add new breach of contract claims. On May 29, 2021, FCX filed a separate lawsuit against us in the United States District Court for the Western District of Texas, alleging a claim for patent infringement related to U.S. Patent No. 10,903,782. FCX seeks an unspecified amount of damages, including past and future royalties, and injunctive relief. Our answer to that complaint was filed on June 22, 2021, along with our motion to transfer the patent suit to the Southern District of New York to be consolidated with the New York litigation. FCX filed an amended complaint asserting claims for direct patent infringement, indirect infringement by active inducement, and contributory infringement on July 27, 2021, and we filed our answer to that complaint on August 10, 2021. On October 25, 2021, our motion to transfer the case to the Southern District of New York was granted, and the patent case was consolidated with FCX's contract case on November 19, 2021. Discovery in this consolidated matter is ongoing. We believe the claims asserted in both lawsuits are without merit, and we plan to vigorously defend against them. We and our management considered (a) the facts described above, (b) the preliminary stages of the proceedings and (c) the advice of outside legal counsel on the claims and determined that it is not probable that FCX will prevail on the merits. At this time, we believe that the likelihood of any material loss related to these matters is remote given the strength of our defenses. The Company has no t recorded any material loss contingency in the Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 10. Stock-based compensation Stock compensation expense for each period was as follows: Three months ended March 31, (in thousands) 2022 2021 Cost of revenue $ 309 $ 66 Research and development 188 14 Selling and marketing 530 9 General and administrative 3,583 360 Total stock compensation expense $ 4,610 $ 449 |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 11. Net loss per share Three months ended March 31, 2022 2021 Net loss (in thousands) $ ( 27,793 ) $ ( 7,442 ) Weighted average shares outstanding for calculating basic and diluted loss per share 99,211,792 66,875,469 Basic and diluted loss per share $ ( 0.28 ) $ ( 0.11 ) For purposes of computing diluted loss per share, weighted average common shares outstanding do not include potentially dilutive securities that are anti-dilutive, as shown below. As of March 31, 2022 2021 Anti-dilutive securities excluded from calculating dilutive loss per share: Shares of common stock issuable under stock option plans outstanding 8,452,319 8,197,000 Shares of common stock issuable upon vesting of restricted stock units 4,995,792 15,463,000 Potential common shares excluded from diluted net loss per share calculation 13,448,111 23,660,000 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income taxes For the three months ended March 31, 2022 and 2021, we recorded income tax expense of $ 0.08 million and an income tax benefit of $ 0.02 million , respectively, both of which were lower than the statutory rate of 21 %, primarily due to a valuation allowance established against the U.S. deferred tax assets. At March 31, 2022 , we had total unrecognized tax benefits of approximately $ 0.7 million. Approximately $ 0.2 million of our gross unrecognized tax benefits, if recognized, would affect our effective tax rate. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of March 31, 2022 , we had no accrued interest or penalties related to unrecognized tax benefits. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 13. Related party transactions In February 2022, we engaged Fernweh Engaged Operator Company LLC (“FEOC”) to support us with improvements to our processes and performance in various areas including design, sourcing, logistics, pricing, software and standard configuration. The consideration for such engagement is a combination of (i) quarterly cash payments through mid-2023, (ii) stock options that are time-based vested through the second quarter of 2023, and (iii) options with vesting tied to achievement of certain performance metrics based on our stock price. The foregoing transaction constitutes a related person transaction under our policies and procedures as South Lake One LLC, an entity affiliated with Isidoro Quiroga Cortés, a member of our board of directors, and a holder of more than 5 % of our outstanding capital stock, is an investor in Fernweh Group LLC (“Fernweh Group”), the parent entity of FEOC. Also, Aequanimitas Limited Partnership and Discrimen LLC are investors in Fernweh Group, and Isidoro Quiroga Cortés is affiliated with those entities. Isidoro Quiroga Cortés is also on the board of Fernweh Group. For the three months ended March 31, 2022, we incurred $ 1.1 million of general and administrative expense associated with our engagement of FEOC. We made no cash payments during the three months ended March 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of presentation and principles of consolidation The accompanying unaudited condensed consolidated financial statements include the results of the Company and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial statements and pursuant to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments have been made that are considered necessary for a fair statement of our financial position as of March 31, 2022, and December 31, 2021, our results of operations for the three months ended March 31, 2022 and 2021 and our cash flows for the three months ended March 31, 2022 and 2021. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited consolidated financial statements but, does not include all disclosures required by accounting principles generally accepted in the United States of America. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022. Intercompany balances and transactions have been eliminated in consolidation. Certain information and disclosures normally included in the notes to annual financial statements prepared in accordance with GAAP have been omitted from these interim financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Therefore, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. On April 28, 2021, we effected an approximately 8.25-for-1 forward split of our issued and outstanding shares of common stock, par value $ 0.0001 per share. As a result of the forward stock split, one (1) share of common stock issued and outstanding was automatically increased to approximately 8.25 shares of issued and outstanding common stock, without any change in the par value per share. All information related to common stock, stock options, restricted stock awards and earnings per share have been retroactively adjusted to give effect to the forward stock split for all periods presented, unless otherwise indicated. We currently operate in one business segment, the manufacturing and servicing of Voyager Tracker |
Liquidity | Liquidity We have incurred cumulative losses since inception, resulting in an accumulated deficit of $ 177.0 million at March 31, 2022, and have a history of cash outflows from operations. During the year ended December 31, 2021, and the three months ended March 31, 2022 , we had $ 132.9 million and $ 53.1 million , respectively, of cash outflow from operations. At March 31, 2022, we had $ 49.4 million of cash on hand, $ 119.8 million of working capital and approximately $ 98.1 million of unused borrowing capacity under our existing revolving credit facility. The revolving credit facility includes a financial condition covenant stating we are required to have a minimum liquidity, consisting of cash on hand and unused borrowing capacity, of $ 125.0 million as of each quarter end. After considering this financial condition covenant, we had approximately $ 22.4 million of available liquidity as of March 31, 2022 , in order to retain access to our revolving credit facility. Additionally, we had no long-term borrowings or other material obligations requiring the use of cash as of March 31, 2022. As of May 12, 2022, we have collected approximately $ 62 million of receivables since March 31, 2022, and have a cash balance of approximately $ 71 million. On March 25, 2022, the U.S. Department of Commerce, in response to a petition by Auxin Solar, Inc., initiated an investigation of claims related to alleged circumvention of U.S. antidumping and countervailing duties ("AD/CVD") by solar manufacturers in certain Southeast Asian countries in an effort to determine whether or not solar cells and/or modules made in those Southeast Asian nations use parts originating from China in order to circumvent the AD/CVD tariffs. This decision has resulted in some developers deferring projects later in the year due to the uncertainty of panel supply and costs, which is expected to negatively impact our anticipated revenues and our cash flows. Our costs are affected by certain component costs including steel, motors and micro-chips, as well as transportation costs. Current market conditions that constrain supply of materials and disrupt the flow of materials from international vendors impact the cost of our products and services. These cost increases impact our operating margins. We are taking steps to expand and diversify our manufacturing partnerships and have employed alternative modes of transportation to mitigate the impact of the current headwinds in the global supply chain and logistics markets. Additionally, we have contracted with a consulting firm to support us with improvements to our processes and performance in various areas including design, sourcing, logistics, pricing, software and standard configuration. For further information regarding this consulting firm, see "Note 13. Related party transactions". In accordance with ASC 205-40, Going Concern, we have evaluated whether there are conditions and events, considered in the aggregate, which raise substantial doubt about our ability to continue as a going concern within one year after the date the financial statements are issued. Based on our recurring losses from operations, impact of the U.S. Department of Commerce investigation of AD/CVD circumvention claims, the expectation of continued operating losses during 2022, and the need to improve profitability and cash flow to finance our future operations, we determined that there is substantial doubt about our ability to continue as a going concern within twelve months of the issuance date of the accompanying consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty and assumes we will continue as a going concern through the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business. As we continue to address these current market challenges, management has also undertaken the following actions: • we are in discussions with the lenders of our revolving credit facility to lower the minimum required liquidity amount, which, if successful, could result in additional liquidity; • we have initiated a program, as described above, with third party assistance, to improve our operating performance and increase our gross margins; • we are freezing non-essential hiring, reducing our travel expenses, decreasing the future use of consultants and deferring non-critical initiatives; • we are negotiating improved payment terms with both our customers and vendors; • we have initiated frequent, consistent communication with our customers, which has allowed us to resolve issues preventing timely collection of certain outstanding receivables subsequent to March 31, 2022; and • we are exploring options to obtain additional sources of capital. Should we not be successful in executing the above initiatives, or in reducing our historical levels of use of cash to fund our operations, or should market conditions deteriorate significantly from what we currently expect, or regulatory and international trade policies become more stringent as a result of findings from the Department of Commerce's AD/CVD investigation, or other factors, we may need to issue additional debt or obtain new equity financing to fund our operations for the next twelve months. We may be unable to obtain any desired additional financing on terms favorable to us, or at all, depending on market and other conditions. The ability to raise additional financing depends on numerous factors that are outside of our control, including general economic and market conditions, the health of financial institutions, investors' and lenders' assessments of our prospects and the prospects of the solar industry in general. |
Cash and cash equivalents | Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. We regularly maintain cash balances that exceed federally insured amounts, but we have experienced no losses associated with these amounts to date. |
Accounts receivable, net | Accounts receivable, net Trade receivables are recorded at invoiced amounts, net of allowances for doubtful accounts if applicable, and do not bear interest. We generally do not require collateral from our customers; however, in certain circumstances, we may require letters of credit, other collateral, additional guarantees or advance payments. The allowance for doubtful accounts is based on our assessment of the collectability of our customer accounts. We regularly review our accounts receivable that remain outstanding past their applicable payment terms and establish allowances or make potential write-offs by considering certain factors such as historical experience, industry data, credit quality, age of balances and current economic conditions that may affect a customers’ ability to pay. Receivables arising from revenue recognized in excess of billings represents our unconditional right to consideration before customers are invoiced due to the level of progress obtained as of period end on our contracts to install Voyager tracker systems and related equipment. Further information may be found below in our revenue recognition policy. |
Inventory, net | Inventories, net Inventories are stated at the lower of cost or net realizable value, with costs computed on a first-in, first-out basis. The Company periodically reviews its inventories for excess and obsolete items and adjusts carrying costs to estimated net realizable values when they are determined to be less than cost. |
Use of Estimates | Use of estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenue and expenses during the period. Estimates are used for calculating the measure of progress of Voyager tracker projects and deriving the standalone selling prices of the individual performance obligations when determining amounts to recognize for revenue, estimating allowances for doubtful accounts and slow-moving and obsolete inventory, determining useful lives of noncurrent assets and the estimated fair value of those assets for impairment assessments, and estimating the fair value of investments, stock compensation awards, warranty liabilities and federal and state taxes and contingencies. We base our estimates on historical experience and anticipated results, trends, and various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of credit risk Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and accounts receivable. We regularly maintain cash balances with various financial institutions that exceed federally insured amounts, but we have experienced no losses associated with these amounts to date. The Company extends credit to customers in the normal course of business, often without requiring collateral. The Company performs credit analyses and monitors the financial health of its customers to reduce credit risk. The Company’s accounts receivables are derived from revenue earned from customers primarily located in the U.S. and in the Asia Pacific region. No country other than the U.S. accounts for 10% or more of our revenue. Most of our customers are project developers, solar asset owners and engineering, procurement and construction (“EPC”) contractors that design and build solar energy projects. Often times, a small number of customers account for a significant portion of our outstanding receivables at period end and our total revenue for the year. |
Stock-Based Compensation | Stock-based compensation We recognize compensation expense for all share-based payment awards made, including stock options and restricted stock, based on the estimated fair value of the award on the grant date, in the accompanying consolidated statement of operations and comprehensive loss. We calculate the fair value of stock options using the Black-Scholes Option-Pricing model, while the fair value of restricted stock grants is based on the estimated fair value of the Company's common stock on the date of grant. Since completion of our IPO, we consider the closing price of our stock, as reported on the Nasdaq Global Market, to be the fair value of our stock on the grant date. Forfeitures are accounted for as they occur. For service-based awards, stock-based compensation is recognized using the straight-line attribution approach over the requisite service period. For performance-based awards, stock-based compensation is recognized based on graded vesting over the requisite service period when the performance condition is probable of being achieved. |
Revenue Recognition | Revenue recognition Product revenue includes revenue from the sale of Voyager Tracker and customized components of Voyager Tracker, individual part sales for certain specific transactions, and sale of term-based software licenses. Term-based software licenses are deployed on the customers’ own servers and have significant standalone functionality. Service revenue includes revenue from shipping and handling services, subscription fees from licensing subscription services, and maintenance and support services in connection with the term-based software licenses. Our subscription-based enterprise licensing model typically has contract terms ranging from one to two years and consists of subscription fees from the licensing of subscription services. Our hosted on-demand service arrangements do not provide customers with the right to take possession of the software supporting the hosted services. Support services include ongoing security updates, upgrades, bug fixes, and maintenance. We recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Identify the contract with a customer: A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the products and services to be transferred and identifies the payment terms related to these products and services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for products and services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. In assessing the recognition of revenue, we also evaluate whether two or more contracts should be combined and accounted for as one contract and if the combined or single contract should be accounted for as multiple performance obligations which could change the amount of revenue and profit (loss) recorded in a period. Change orders may include changes in specifications or design, manner of performance, equipment, materials, scope of work, and/or the period of completion of the project. We analyze change orders to determine if they should be accounted for as a modification to an existing contract or a new stand-alone contract. Contracts we enter into with our customers for sale of Voyager Trackers are generally under two different types of arrangements: (1) purchase agreements and equipment supply contracts (“Purchase Agreements”) and (2) sale of individual parts of the Voyager Tracker. Change orders from our customers are generally modifications to existing contracts and are included in the total estimated contract revenue when it is probable that the change order will result in additional value that can be reliably estimated and realized. Identify the performance obligations in the contract: We enter into contracts that can include various combinations of products and services, which are either capable of being distinct and accounted for as separate performance obligations or as one performance obligation since the majority of tasks and services are part of a single project or capability. However, determining whether products or services are considered distinct performance obligations that should be accounted for separately versus together may sometimes require significant judgment. Our Purchase Agreements typically include two performance obligations- 1) Voyager Tracker or customized components of Voyager Tracker, and 2) shipping and handling services. The deliverables included as part of the Voyager Tracker are predominantly accounted for as one performance obligation, as these deliverables are part of a combined promise to deliver a project. The revenue for shipping and handling services will be recognized over time based on progress in meeting shipping terms of the arrangements, as this faithfully depicts the Company’s performance in transferring control. Sale of individual parts of Voyager Tracker for certain specific transactions includes multiple performance obligations consisting of individual parts of the Voyager Tracker. Revenue is recognized for parts sales at a point in time when the obligations under the terms of the contract with our customer are satisfied. Generally, this occurs with the transfer of control of the asset, which is in line with shipping terms. Determine the transaction price: The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring services to the customer. Such amounts are typically stated in the customer contract, and to the extent that we identify variable consideration, we will estimate the variable consideration at the onset of the arrangement as long as it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The majority of our contracts do not contain variable consideration provisions as a continuation of the original contract. None of our contracts contain a significant financing component. Taxes collected from customers and remitted to governmental authorities are not included in revenue. Allocate the transaction price to performance obligations in the contract: Once we have determined the transaction price, we allocate the total transaction price to each performance obligation in a manner depicting the amount of consideration to which we expect to be entitled in exchange for transferring the good(s) or service(s) to the customer. We allocate the transaction price to each performance obligation identified in the contract on a relative standalone selling price basis. We use the expected cost-plus margin approach based on hardware, labor, and related overhead cost to estimate the standalone selling price of the Voyager Tracker, customized components of Voyager Tracker, and individual parts of Voyager Tracker for certain specific transactions. We use the adjusted market assessment approach for all other performance obligations except shipping, handling, and logistics. For shipping, handling, and logistics performance obligations, we use a residual approach to calculate the standalone selling price, because of the nature of the highly variable and broad range of prices we charge to various customers for this performance obligation in the contracts. Recognize revenue when or as the Company satisfies a performance obligation: For each performance obligation identified, we determine at contract inception whether we satisfy the performance obligation over time or at a point in time. Voyager Tracker and customized components of Voyager Tracker performance obligations in the contract are satisfied over-time as work progresses for its custom assembled Voyager Tracker, utilizing an input measure of progress determined by cost-to-cost measures on these projects as this faithfully depicts our performance in transferring control. Additionally, our performance does not create an asset with an alternative use, due to the highly customized nature of the product, and we have an enforceable right to payment for performance completed to date. Our performance obligations for individual part sales for certain specific transactions are recognized point-in-time as and when control transfers based on the Incoterms for the contract. Our performance obligations for term-based software licenses are recognized point-in-time as and when control transfers, either upon delivery to the customer or the software license start date, whichever is later. Our performance obligation for shipping and handling services is satisfied over-time as the services are delivered over the term of the contract. We recognize subscription services sales/other services on a straight-line basis over the contract period. With regard to support revenue, a time-elapsed method is used to measure progress because we transfer control evenly over the contractual period. Accordingly, the fixed consideration related to support revenue is generally recognized on a straight-line basis over the contract term. Contract assets and liabilities: The timing of revenue recognition, billing, and cash collection results in the recognition of accounts receivable, unbilled receivables for revenue recognized in excess of billing, and deferred revenue in the Consolidated Balance Sheets. We may receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities, which are reflected as “deferred revenue” on our Consolidated Balance Sheets. Cost of revenue consists primarily of costs related to raw materials, freight and delivery, product warranty, and personnel costs (salaries, bonuses, benefits, and stock-based compensation). Personnel costs in cost of revenue include both direct labor costs as well as costs attributable to any individuals whose activities relate to the procurement, installment, and delivery of the finished product and services. Deferred cost of revenue results from the timing differences between the costs incurred in advance of the satisfaction of all revenue recognition criteria consistent with our revenue recognition policy. Revision of previously issued financial statements In connection with preparation of our consolidated financial statements as of and for the year ended December 31, 2021, we identified an error in the classification of offering costs in the statement of cash flows for the three months ended March 31, 2021. Specifically, we incorrectly classified $ 1.1 million of offering costs paid as an operating cash outflow instead of a financing cash outflow in our previously issued cash flow statement for the three months ended March 31, 2021. Although we have concluded that this error is immaterial to the previously issued financial statements, we have corrected this error in the accompanying condensed consolidated statements of cash flows by revising the operating and financing cash outflows previously reported in our cash flow statement for the three months ended March 31, 2021. |
Warranty | Warranty Typically, the sale of Voyager Tracker projects includes parts warranties to customers as part of the overall price of the product. We provide standard assurance type warranties for our products for periods generally ranging from five to ten years. We record a provision for estimated warranty expenses in cost of sales, net of amounts recoverable from manufacturers under their warranty obligations to us. We do not maintain general or unspecified reserves; all warranty reserves are related to specific projects. All actual or estimated material costs incurred for warranty services in subsequent periods are charged to those established reserves. While we periodically monitor our warranty activities and claims, if actual costs incurred were to be different from our estimates, we would recognize adjustments to our warranty reserves in the period in which those differences arise or are identified. |
Recent Accounting Pronouncements | Recent accounting pronouncements not yet adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and requires the use of an expected loss model in place of the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The update to the standard is effective for the Company for its fiscal year beginning after December 15, 2022, to the extent the Company remains an emerging growth company, and early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 to have a material impact on its consolidated financial statements. |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Trade receivables $ 100,285 $ 38,597 Revenue recognized in excess of billings 40,663 72,676 Other receivables 148 147 Total 141,096 111,420 Allowance for doubtful accounts ( 8,866 ) ( 3,872 ) Accounts receivable, net $ 132,230 $ 107,548 During the three months ended March 31, 2022, we recognized a $ 5.0 million reserve against our revenue for a potential customer concession. |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Finished goods $ 9,008 $ 8,950 Allowance for slow-moving and obsolete inventory ( 90 ) ( 90 ) Total $ 8,918 $ 8,860 |
Prepaid Expenses and Other Cu_2
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid and other current assets consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Vendor deposits $ 10,700 $ 13,098 Prepaid expenses 1,308 2,301 Prepaid taxes 290 269 Surety collateral 334 460 Other current assets 1,130 1,058 Total $ 13,762 $ 17,186 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Lease Expense | Our lease expense consisted of the following: Three months ended March 31, (in thousands) 2022 2021 Operating lease cost $ 198 $ 78 Short-term lease cost 115 63 Total lease cost $ 313 $ 141 Reported in: Cost of revenue $ 193 $ 61 Research and development 8 6 Selling and marketing — 1 General and administrative 112 73 Total lease cost $ 313 $ 141 |
Summary of Future Remaining Lease Payments Obligations | Future remaining operating lease payment obligations were as follows: (in thousands) March 31, 2022 $ 424 2023 520 2024 511 2025 446 2026 55 Thereafter — Total lease payments 1,956 Less: imputed interest ( 315 ) Present value of operating lease liabilities $ 1,641 Current portion of operating lease liability $ 451 Operating lease liability, net of current portion 1,190 Present value of operating lease liabilities $ 1,641 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Leasehold improvements $ 22 $ 22 Field equipment 891 833 Information technology equipment 243 182 Tooling 527 543 Capitalized software 250 250 Total 1,933 1,830 Accumulated depreciation ( 369 ) ( 248 ) Property and equipment, net $ 1,564 $ 1,582 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses and Other Current Liabilities Abstract | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, 2022 December 31, 2021 Accrued cost of revenue $ 22,623 $ 43,185 Accrued compensation 4,507 981 Other accrued expenses 3,518 3,694 Total accrued expenses $ 30,648 $ 47,860 Warranty reserves $ 3,771 $ 4,032 Current portion of operating lease liability 451 452 Non-federal tax obligations 301 172 Other — — Total other current liabilities $ 4,523 $ 4,656 |
Schedule of warranty accruals | Activity by period in the Company's warranty accruals wa s as follows: Three months ended March 31, (in thousands) 2022 2021 Balance at beginning of period $ 9,346 $ 6,811 Warranties issued during the period 516 1,554 Settlements made during the period ( 421 ) ( 1,819 ) Changes in liability for pre-existing warranties ( 205 ) ( 187 ) Balance at end of period $ 9,236 $ 6,359 Accrued warranty balance reported in: Other current liabilities $ 3,771 $ 2,891 Other non-current liabilities 5,465 3,468 Balance at end of period $ 9,236 $ 6,359 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in Product Warranty Reserves | Activity by period in the Company's warranty accruals wa s as follows: Three months ended March 31, (in thousands) 2022 2021 Balance at beginning of period $ 9,346 $ 6,811 Warranties issued during the period 516 1,554 Settlements made during the period ( 421 ) ( 1,819 ) Changes in liability for pre-existing warranties ( 205 ) ( 187 ) Balance at end of period $ 9,236 $ 6,359 Accrued warranty balance reported in: Other current liabilities $ 3,771 $ 2,891 Other non-current liabilities 5,465 3,468 Balance at end of period $ 9,236 $ 6,359 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock compensation expense | Stock compensation expense for each period was as follows: Three months ended March 31, (in thousands) 2022 2021 Cost of revenue $ 309 $ 66 Research and development 188 14 Selling and marketing 530 9 General and administrative 3,583 360 Total stock compensation expense $ 4,610 $ 449 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Income (Loss) Per Share | Three months ended March 31, 2022 2021 Net loss (in thousands) $ ( 27,793 ) $ ( 7,442 ) Weighted average shares outstanding for calculating basic and diluted loss per share 99,211,792 66,875,469 Basic and diluted loss per share $ ( 0.28 ) $ ( 0.11 ) |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income Per Share | For purposes of computing diluted loss per share, weighted average common shares outstanding do not include potentially dilutive securities that are anti-dilutive, as shown below. As of March 31, 2022 2021 Anti-dilutive securities excluded from calculating dilutive loss per share: Shares of common stock issuable under stock option plans outstanding 8,452,319 8,197,000 Shares of common stock issuable upon vesting of restricted stock units 4,995,792 15,463,000 Potential common shares excluded from diluted net loss per share calculation 13,448,111 23,660,000 |
Description of Business - Addit
Description of Business - Additional Information (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 28, 2021 | Mar. 31, 2022 |
Description Of Business [Line Items] | |||
Stock split | 8.25-for-1 | ||
IPO [Member] | |||
Description Of Business [Line Items] | |||
Issuance of common stock (in shares) | 19,840,000 | 4,455,384 | |
Proceeds from IPO | $ 241.2 | ||
Purchase cost of shares | $ 54.2 | ||
Stock split | 8.25-for-1 |
Revision of Previously Issued F
Revision of Previously Issued Financial Statements - Schedule of condensed Consolidated Balance Sheet (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Consolidated Balance Sheet | ||||
Additional paid-in capital | $ 297,119 | $ 292,082 | ||
Accumulated deficit | (177,025) | (149,232) | ||
Condensed Consolidated Statement of Comprehensive Loss | ||||
Cost of Revenue | 58,840 | $ 65,588 | ||
Research and development | 2,701 | 1,954 | ||
Selling and marketing | 1,972 | 1,100 | ||
General and administrative | 13,818 | 5,084 | ||
Total operating expenses | 18,491 | 8,138 | ||
Loss from operations | (27,778) | (8,019) | ||
Loss before income taxes | (27,717) | (7,461) | ||
Net loss | (27,793) | (7,442) | ||
Comprehensive loss | $ (27,736) | $ (7,443) | ||
Basic loss per share | $ (0.28) | $ (0.11) | ||
Diluted loss per share | $ (0.28) | $ (0.11) | ||
Basic weighted-average number of common shares outstanding | 99,211,792 | 66,875,469 | ||
Diluted weighted-average number of common shares outstanding | 99,211,792 | 66,875,469 | ||
Statement of Stockholders' Equity [Abstract] | ||||
Net Income (loss) | $ (27,793) | $ (7,442) | ||
Stockholders equity | 120,168 | 496 | 142,866 | $ 7,451 |
Statement of Cash Flows [Abstract] | ||||
Net loss | $ (27,793) | $ (7,442) | ||
Note 11. Net loss per share | ||||
Potential common shares excluded from diluted net loss per share | 13,448,111 | 23,660,000 | ||
Product | ||||
Condensed Consolidated Statement of Comprehensive Loss | ||||
Cost of Revenue | $ 34,963 | $ 54,996 | ||
Additional Paid-in Capital | ||||
Statement of Stockholders' Equity [Abstract] | ||||
Stockholders equity | 297,119 | 50,584 | 292,082 | 50,096 |
Accumulated Deficit | ||||
Condensed Consolidated Statement of Comprehensive Loss | ||||
Net loss | (27,793) | (7,442) | ||
Statement of Stockholders' Equity [Abstract] | ||||
Net Income (loss) | (27,793) | (7,442) | ||
Stockholders equity | (177,025) | (50,085) | $ (149,232) | $ (42,643) |
Statement of Cash Flows [Abstract] | ||||
Net loss | $ (27,793) | $ (7,442) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 28, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 12, 2022 |
Stock split | 8.25-for-1 | ||||
Increase in Common stock Issued and Outstanding | 8.25 | ||||
Cash | $ 49,400 | $ 71,000 | |||
Accumulated deficit | (177,025) | $ (149,232) | |||
Unused borrowing capacity | 98,100 | ||||
Available liquidity after considering financial condition | 22,400 | ||||
Net cash used in operating activities | 53,106 | $ 25,904 | 132,900 | ||
Working capital | 119,800 | ||||
Receivables Collected | 148 | $ 147 | $ 62,000 | ||
Long-term borrowings or other material obligations | $ 0 | ||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Common stock, shares issued | 99,724,843 | 92,619,641 | |||
Common stock, shares outstanding | 99,724,843 | 92,619,641 | |||
Warranty description | We provide standard assurance type warranties for our products for periods generally ranging from five to ten years. | ||||
Offering costs | 1,100 | ||||
Minimum [Member] | |||||
Subscription revenue contract terms | 1 year | ||||
Maximum [Member] | |||||
Subscription revenue contract terms | 2 years | ||||
Revolving Credit Facility [Member] | |||||
Unused borrowing capacity | $ 125,000 | $ 125,000 |
Accounts receivable, net - Sche
Accounts receivable, net - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | May 12, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |||
Trade receivables | $ 100,285 | $ 38,597 | |
Revenue recognized in excess of billings | 40,663 | 72,676 | |
Other receivables | $ 62,000 | 148 | 147 |
Total | 141,096 | 111,420 | |
Allowance for doubtful accounts | (8,866) | (3,872) | |
Accounts receivable, net | $ 132,230 | $ 107,548 |
Accounts receivable, net (Addit
Accounts receivable, net (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Retainage provisions included in receivables | $ 5.1 | $ 11.6 |
Reserve against revenue | $ 5 |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 9,008 | $ 8,950 |
Allowance for slow-moving and obsolete inventory | (90) | (90) |
Total | $ 8,918 | $ 8,860 |
Revenue - Additional Informatio
Revenue - Additional Information - (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 3,100 | $ 1,421 |
Prepaid Expenses and Other Cu_3
Prepaid Expenses and Other Current Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Vendor deposits | $ 10,700 | $ 13,098 |
Prepaid expense | 1,308 | 2,301 |
Prepaid taxes | 290 | 269 |
Surety collateral | 334 | 460 |
Other current assets | 1,130 | 1,058 |
Prepaid expenses and other current assets, Total | $ 13,762 | $ 17,186 |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 198 | $ 78 |
Short-term lease cost | 115 | 63 |
Total lease cost | 313 | 141 |
Cost of revenue [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 193 | 61 |
Research and development [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 8 | 6 |
Selling and marketing [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 0 | 1 |
General and administrative [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 112 | $ 73 |
Leases - Summary of Future Rema
Leases - Summary of Future Remaining Lease Payments Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 424 | |
2023 | 520 | |
2024 | 511 | |
2025 | 446 | |
2026 | 55 | |
Thereafter | 0 | |
Total lease payments | 1,956 | |
Less imputed interest | (315) | |
Current portion of operating lease liability | 451 | $ 452 |
Operating lease liability, net of current portion | 1,190 | $ 1,340 |
Present value of operating lease liabilities | $ 1,641 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,933 | $ 1,830 |
Accumulated depreciation | (369) | (248) |
Property, Plant and Equipment, Net, Total | 1,564 | 1,582 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22 | 22 |
Field Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 891 | 833 |
Information Technology Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 243 | 182 |
Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 527 | 543 |
Capitalized Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 250 | $ 250 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Accrued Expenses and Other Current Liabilities Abstract | |||
Accrued cost of revenues | $ 22,623 | $ 43,185 | |
Accrued Compensations | 4,507 | 981 | |
Other accrued expenses | 3,518 | 3,694 | |
Total accrued expenses | 30,648 | 47,860 | |
Warranty reserves | 3,771 | 4,032 | $ 2,891 |
Current portion of operating lease liability | $ 451 | $ 452 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total other current liabilities | Total other current liabilities | |
Non-federal tax obligations | $ 301 | $ 172 | |
Other | 0 | 0 | |
Total other current liabilities | $ 4,523 | $ 4,656 |
Accrued expenses and other cu_4
Accrued expenses and other current liabilities - Schedule of warranty accruals (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Accrued Expenses and Other Current Liabilities Abstract | |||
Balance at beginning of period | $ 9,346 | $ 6,811 | |
Warranties issued during the period | 516 | 1,554 | |
Settlements made during the period | (421) | (1,819) | |
Changes in liability for pre-existing warranties | (205) | (187) | |
Balance at end of period | 9,236 | 6,359 | |
Accrued warranty balance reported in: | |||
Other current liabilities | 3,771 | 2,891 | $ 4,032 |
Other non-current liabilities | 5,465 | 3,468 | |
Balance at end of period | $ 9,236 | $ 6,359 | $ 9,346 |
Sales of Equity Method Investme
Sales of Equity Method Investments - Summarized Financial Information For Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of operations | ||
Gross loss | $ (9,287) | $ 119 |
Net loss | (27,793) | (7,442) |
Share of net loss from equity method investment | $ 0 | $ (218) |
Debt and Other Borrowings - Add
Debt and Other Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Common stock issued for notes purchased | 99,724,843 | 92,619,641 | |
Amortization of debt issuance cost | $ 173 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Apr. 21, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Product Warranty Liability [Line Items] | |||
Loss contingency | $ 0 | $ 0 | |
Fcx Solar Llc [Member] | |||
Product Warranty Liability [Line Items] | |||
Damages sought value | $ 134,000 |
Stock-based compensation - Stoc
Stock-based compensation - Stock compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation expense | $ 4,610 | $ 449 |
Cost of revenue [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation expense | 309 | 66 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation expense | 188 | 14 |
Selling and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation expense | 530 | 9 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total stock compensation expense | $ 3,583 | $ 360 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Apr. 28, 2021 | |
Class of Stock [Line Items] | ||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Common stock, shares authorized | 850,000,000 | 850,000,000 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | 99,724,843 | 92,619,641 | ||
Common stock, value, issued | $ 10 | $ 9 | ||
Operating Expenses | 18,491 | $ 8,138 | ||
Treasury stock, value | $ 0 | $ 0 |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic and diluted: | ||
Net loss | $ (27,793) | $ (7,442) |
Weighted average shares outstanding for calculating basic and diluted loss per share | 99,211,792 | 66,875,469 |
Basic and diluted loss per share | $ (0.28) | $ (0.11) |
Net Loss Per Share - Schedule_2
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 13,448,111 | 23,660,000 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 8,452,319 | 8,197,000 |
Restricted Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 4,995,792 | 15,463,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Contingency [Line Items] | ||
Pre-tax income (loss) from company's operations | $ (27,717) | $ (7,461) |
Income tax expense (benefit) | $ (76) | $ 19 |
Change in deferred tax assets valuation allowance, percentage | 21.00% | 21.00% |
Unrecognized tax benefits | $ 700 | |
Unrecognized tax benefits impact effective income tax rate | 200 | |
Income Tax Interest and Penalties Accrued | $ 0 |
Segment Information - Schedule
Segment Information - Schedule of Company's Total Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues | $ 49,553 | $ 65,707 |
Related party transactions - Ad
Related party transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Treasury stock, value | $ 0 | $ 0 | |
Cash Payments | 0 | ||
South Lake One LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Outstanding capital stock held | 5.00% | ||
Fernweh Engaged Operator Company LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Related party general and administrative expense | $ 1,100 |