Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 26, 2024 | |
Cover [Abstract] | ||
Entity Registrant Name | FTC SOLAR, INC. | |
Entity Central Index Key | 0001828161 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | 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, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FTCI | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-40350 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 81-4816270 | |
Entity Address, Address Line One | 9020 N Capital of Texas Hwy | |
Entity Address, Address Line Two | Suite I-260 | |
Entity Address, City or Town | Austin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78759 | |
City Area Code | 737 | |
Local Phone Number | 787-7906 | |
Entity Common Stock, Shares Outstanding | 125,979,165 | |
Document Quarterly Report | true | |
Document Transition Report | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets | ||
Cash and cash equivalents | $ 14,041 | $ 25,235 |
Restricted cash | 1,896 | 0 |
Accounts receivable, net | 66,379 | 65,279 |
Inventories | 3,844 | 3,905 |
Prepaid and other current assets | 14,069 | 14,089 |
Total current assets | 100,229 | 108,508 |
Operating lease right-of-use assets | 1,637 | 1,819 |
Property and equipment, net | 1,994 | 1,823 |
Intangible assets, net | 399 | 542 |
Goodwill | 7,213 | 7,353 |
Equity method investment | 1,010 | 240 |
Other assets | 2,548 | 2,785 |
Total assets | 115,030 | 123,070 |
Current liabilities | ||
Accounts payable | 12,059 | 7,979 |
Accrued expenses | 29,690 | 34,848 |
Income taxes payable | 27 | 88 |
Deferred revenue | 4,897 | 3,612 |
Other current liabilities | 7,859 | 8,138 |
Total current liabilities | 54,532 | 54,665 |
Operating lease liability, net of current portion | 934 | 1,124 |
Other non-current liabilities | 4,406 | 4,810 |
Total liabilities | 59,872 | 60,599 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity | ||
Preferred stock par value of $0.0001 per share, 10,000,000 shares authorized; none issued as of March 31, 2024 and December 31, 2023 | 0 | 0 |
Common stock par value of $0.0001 per share, 850,000,000 shares authorized; 125,952,253 and 125,445,325 shares issued and outstanding as of March 31, 2024 and December 31, 2023 | 13 | 13 |
Treasury stock, at cost; 10,762,566 shares as of March 31, 2024 and December 31, 2023 | 0 | 0 |
Additional paid-in capital | 363,525 | 361,886 |
Accumulated other comprehensive loss | (474) | (293) |
Accumulated deficit | (307,906) | (299,135) |
Total stockholders' equity | 55,158 | 62,471 |
Total liabilities and stockholders' equity | $ 115,030 | $ 123,070 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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 | 125,952,253 | 125,445,325 |
Common stock, shares outstanding | 125,952,253 | 125,445,325 |
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, 2024 | Mar. 31, 2023 | |
Revenue: | ||
Total revenue | $ 12,587 | $ 40,894 |
Cost of revenue: | ||
Total cost of revenue | 14,695 | 38,859 |
Gross profit (loss) | (2,108) | 2,035 |
Operating expenses | ||
Research and development | 1,439 | 1,922 |
Selling and marketing | 2,388 | 1,711 |
General and administrative | 6,567 | 10,799 |
Total operating expenses | 10,394 | 14,432 |
Loss from operations | (12,502) | (12,397) |
Interest expense, net | (136) | (58) |
Gain from disposal of investment in unconsolidated subsidiary | 4,085 | 898 |
Other income (expense), net | 36 | (74) |
Loss from unconsolidated subsidiary | (265) | 0 |
Loss before income taxes | (8,782) | (11,631) |
(Provision for) benefit from income taxes | 11 | (131) |
Net loss | (8,771) | (11,762) |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (181) | (5) |
Comprehensive loss | $ (8,952) | $ (11,767) |
Net loss per share: | ||
Basic | $ (0.07) | $ (0.11) |
Diluted | $ (0.07) | $ (0.11) |
Weighted-average common shares outstanding: | ||
Basic | 125,569,375 | 106,791,198 |
Diluted | 125,569,375 | 106,791,198 |
Product | ||
Revenue: | ||
Total revenue | $ 10,905 | $ 32,579 |
Cost of revenue: | ||
Total cost of revenue | 12,367 | 31,767 |
Service | ||
Revenue: | ||
Total revenue | 1,682 | 8,315 |
Cost of revenue: | ||
Total cost of revenue | $ 2,328 | $ 7,092 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance at Dec. 31, 2022 | $ 66,450 | $ 0 | $ 11 | $ 0 | $ 315,345 | $ (61) | $ (248,845) |
Beginning balance (in shares) at Dec. 31, 2022 | 0 | 105,032,588 | 10,762,566 | ||||
Shares issued during the period for vested restricted stock awards | 2,775 | 2,775 | |||||
Shares issued during the period for vested restricted stock awards, shares | 1,498,987 | ||||||
Issuance of common stock upon exercise of stock options | 51 | 51 | |||||
Issuance of common stock upon exercise of stock options, shares | 265,125 | ||||||
Shares issued for legal settlement | 2,000 | 2,000 | |||||
Shares issued for legal settlement, shares | 797,396 | ||||||
Sale of shares | 6,292 | 6,292 | |||||
Sale of shares, shares | 2,683,000 | ||||||
Stock offering costs | (32) | (32) | |||||
Stock-based compensation | 2,472 | 2,472 | |||||
Net loss | (11,762) | (11,762) | |||||
Other comprehensive gain (loss) | (5) | (5) | |||||
Ending balance at Mar. 31, 2023 | 68,241 | $ 0 | $ 11 | $ 0 | 328,903 | (66) | (260,607) |
Ending balance (in shares) at Mar. 31, 2023 | 0 | 110,277,096 | 10,762,566 | ||||
Beginning balance at Dec. 31, 2023 | 62,471 | $ 0 | $ 13 | $ 0 | 361,886 | (293) | (299,135) |
Beginning balance (in shares) at Dec. 31, 2023 | 0 | 125,445,325 | 10,762,566 | ||||
Shares issued during the period for vested restricted stock awards, shares | 506,928 | ||||||
Stock-based compensation | 1,639 | 1,639 | |||||
Net loss | (8,771) | (8,771) | |||||
Other comprehensive gain (loss) | (181) | (181) | |||||
Ending balance at Mar. 31, 2024 | $ 55,158 | $ 0 | $ 13 | $ 0 | $ 363,525 | $ (474) | $ (307,906) |
Ending balance (in shares) at Mar. 31, 2024 | 0 | 125,952,253 | 10,762,566 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities | ||
Net loss | $ (8,771) | $ (11,762) |
Adjustments to reconcile net loss to cash used in operating activities: | ||
Stock-based compensation | 1,639 | 4,890 |
Depreciation and amortization | 404 | 334 |
Amortization of debt issue cost | 177 | 177 |
Provision (credit) for obsolete and slow-moving inventory | 177 | 1,261 |
Loss from unconsolidated subsidiary | 265 | 0 |
Gain from disposal of investment in unconsolidated subsidiary | (4,085) | (898) |
Warranty and remediation provisions | 838 | 1,543 |
Warranty recoverable from manufacturer | 98 | (54) |
Credit loss provisions | 670 | 0 |
Deferred income taxes | 225 | 216 |
Lease expense and other | 309 | 229 |
Impact on cash from changes in operating assets and liabilities: | ||
Accounts receivable | (1,770) | (11,412) |
Inventories | (116) | 5,078 |
Prepaid and other current assets | 45 | 817 |
Other assets | (226) | (882) |
Accounts payable | 3,989 | 7,882 |
Accruals and other current liabilities | (6,200) | (616) |
Deferred revenue | 1,285 | (2,677) |
Other non-current liabilities | (523) | (2,212) |
Lease payments and other, net | (287) | (230) |
Net cash used in operating activities | (11,857) | (8,316) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (432) | (28) |
Equity method investment in Alpha Steel | (1,035) | (900) |
Proceeds from disposal of investment in unconsolidated subsidiary | 4,085 | 898 |
Net cash provided by (used in) investing activities | 2,618 | (30) |
Cash flows from financing activities: | ||
Sale of common stock | 0 | 5,450 |
Stock offering costs paid | 0 | (32) |
Proceeds from stock option exercises | 0 | 51 |
Net cash provided by financing activities | 0 | 5,469 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (59) | (15) |
Decrease in cash, cash equivalents and restricted cash | (9,298) | (2,892) |
Cash and cash equivalents at beginning of period | 25,235 | 44,385 |
Cash and cash equivalents at end of period | 15,937 | 41,493 |
Supplemental disclosures of cash flow information: | ||
Purchases of property and equipment included in ending accounts payable and accruals | 175 | 32 |
Stock issued for accrued legal settlement | 0 | 2,000 |
Right-of-use asset and lease liability recognition for new leases | 0 | 1,417 |
Cash paid during the period for interest | 140 | 129 |
Cash paid during the period for taxes, net of refunds | $ 58 | $ 6 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ (8,771) | $ (11,762) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of business
Description of business | 3 Months Ended |
Mar. 31, 2024 | |
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. In April 2021, we completed an initial public offering ("IPO"), and our common stock began trading on the Nasdaq Global Market under the symbol “FTCI”. We are a global provider of solar tracker systems, supported by proprietary software and value-added engineering services. Solar tracker systems move solar panels throughout the day to maintain an optimal orientation relative to the sun, thereby increasing the amount of solar energy produced at a solar installation. Our original two-panel in-portrait solar tracker system is currently marketed under the Voyager brand name (“Voyager”) and our one module-in-portrait ("1P") solar tracker system, which became certified in 2023, is marketed under the Pioneer brand name ("Pioneer"). We also have a mounting solution to support the installation and use of U.S.-manufactured thin-film modules by project owners. Our primary software offerings include SUNPATH which is intended to help customers optimize solar tracking for increased energy production, our SUNOPS real-time operations management platform and our web-based ATLAS portfolio management software. In addition, we have a team of renewable energy professionals available to assist our U.S. and worldwide clients in site layout, structural design, pile testing and other needs across the solar project development and construction cycle. The Company is headquartered in Austin, Texas, and has international subsidiaries in Australia, China, India, South Africa and Spain. 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, 2024 | |
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 (“U.S. 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 of a normal recurring nature have been made that are considered necessary for a fair statement of our financial position as of March 31, 2024, and December 31, 2023, our results of operations for the three months ended March 31, 2024 and 2023, and our cash flows for the three months ended March 31, 2024 and 2023. The condensed consolidated balance sheet as of December 31, 2023 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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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 U.S. 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, 2023 (our "2023 Annual Report"). We currently operate in one business segment, the manufacturing and servicing of solar tracker systems . Liquidity We have incurred cumulative losses since inception and have a history of cash outflows from operations. As of March 31, 2024, we had $ 14.0 million of cash on hand, $ 45.7 million of working capital and approximately $ 64.9 million of remaining capacity available for future sales of our common stock under our ATM program as defined and described further in Note 4 below. There can be no assurance that we will be able to sell any additional shares of our common stock under the ATM program and no assurance regarding the price at which we will be able to sell such shares, and any sales of our common stock under the ATM program may be at prices that result in additional dilution to our existing stockholders. On December 22, 2023, we received notification from The Nasdaq Stock Market LLC (“Nasdaq”) that we were not in compliance with the requirement to maintain a minimum closing bid price of $ 1.00 per share, as set forth in Nasdaq Listing Rule 5450(a)(1), because the closing bid price of the Company’s common stock was below $ 1.00 per share for 30 consecutive business days. The notification does not impact the listing of our common stock on the Nasdaq Global Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we have a period of 180 calendar days from the date of notification, or until June 19, 2024, to regain compliance with the minimum bid price requirement. During this period, our common stock will continue to trade on the Nasdaq Global Market. If at any time before June 19, 2024 the bid price of our common stock closes at or above $ 1.00 per share for a minimum of ten consecutive business days, Nasdaq will provide written notification that we have achieved compliance with this minimum bid price requirement. In the event we do not regain compliance by June 19, 2024, we may be eligible for an additional 180 calendar day compliance period to demonstrate compliance with the minimum bid price requirement. To qualify for the additional 180-day period, we may be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards (with the exception of the bid price requirement) and transfer our listing to the Nasdaq Capital Market. In addition, we will need to provide written notice to Nasdaq of our intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. If we do not qualify for the second compliance period or fail to regain compliance during the second 180-day period, then Nasdaq will notify us that our common stock is subject to delisting. As of March 31, 2024, we were not in compliance with the minimum liquidity covenant in our existing Senior Secured Revolving Credit Facility (the "Credit Facility") which prevented us from borrowing under the Credit Facility prior to its termination on April 30, 2024. Also, as of March 31, 2024, we had a material contractual obligation that could require us to make additional capital contributions of up to $ 1.6 million to Alpha Steel, as described further in Note 3, "Equity method investment". The most notable incentive program impacting our U.S. business has historically been the investment tax credit ("ITC") for solar energy projects, which allows taxpayers to offset their U.S. federal income tax liability by a certain percentage of their cost basis in solar energy systems placed in service for commercial use. The Inflation Reduction Act of 2022, passed by the U.S. Congress and signed into law by President Biden on August 16, 2022, expanded and extended the tax credits and other tax benefits available to solar energy projects and the solar energy supply chain. ITCs have been extended for such projects through at least 2032 and, depending on the location of a particular project and its ability to satisfy certain labor and domestic content requirements, the ITC percentage can range between 30 % and 50 %. U.S. manufacturers of specific solar components are now eligible to claim production tax credits as an alternative to the ITC. Implementing regulations for this law are, in certain cases, still being finalized and the impact of these regulations continue to be evaluated by developers of new solar projects and manufacturers of solar components. Our investment in and commitments made to Alpha Steel will allow us to obtain certain benefits as a result of this new production tax credit program. We have taken steps to expand and diversify our manufacturing partnerships and have adjusted our modes of transportation to mitigate the impact of headwinds that might arise in the global supply chain and logistics markets. As an example, we modified our ocean freight from previously using charter shipments to now using containerized shipments as costs in the container market began to decrease starting in 2022. We continue to monitor the logistics markets and will continue to evaluate our use of various modes of transportation when warranted to optimize our transportation costs. Additionally, from February 2022 to September 2023, we utilized a related-party consulting firm to support us in making improvements to our processes and performance in various areas, including design, sourcing, logistics, pricing, software and our distributed generation business. For further information regarding this consulting firm, see Note 16, "Related party transactions" below. Similar to previous periods, we continue to evaluate our opportunities in 2024 to address existing market challenges, our cost structure and our historical use of cash. Further, in 2023, we introduced a new mounting solution to support the installation and use of U.S.-manufactured thin-film modules, Pioneer, our 1P solar tracker solution became certified, and we introduced SUNOPS, a cloud-based, tracker agnostic solar asset monitoring solution allowing asset owners and managers to evaluate the operation and performance of their solar deployments. Additionally, we have seen improvements in the logistics markets and easing of supply chain constraints since 2022. These factors contributed to us having positive gross profit during each quarter in 2023, a first since our IPO in April 2021. In accordance with Accounting Standards Codification ("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 our condensed consolidated financial statements are issued. Management believes that our existing cash on hand, including cash received in April 2024 as a result of our agreement with a major customer as discussed further in Note 18, "Subsequent events" below, as well as the continuing impact of certain of the actions described above and our expectations of (i) improved market conditions, (ii) the expected timing of customer project activity, including activity related to certain large project awards received in 2023, and (iii) positive results in recent periods from our efforts to increase our direct product margins, will allow us to grow profitably and generate positive cash flow from operations during the next twelve months in amounts that will be sufficient, along with our other available resources such as our existing working capital and, if conditions become more conducive, the remaining capacity available for future sales of our common stock under our ATM program, to fund our operations for at least one year from the date of issuance of the condensed consolidated financial statements. While there are already many underlying drivers of growth in the solar industry, the expected positive impact on demand for our products, or the timing of construction activity by existing customers and solar project developers, could take longer than expected to occur. In addition, domestic and international market conditions could deteriorate significantly from what we currently expect, and regulatory and international trade policies could become more stringent as a result of (i) findings from an ongoing investigation by the U.S. Department of Commerce (the Solar Circumvention Investigation") in response to a petition by Auxin Solar, Inc. of claims related to alleged circumvention of U.S. antidumping and countervailing duties ("AD/CVD") by solar manufacturers in certain Southeast Asian countries, (ii) enforcement of the Uyghur Forced Labor Prevention Act ("UFLPA") passed by the U.S. Congress and signed into law by President Biden on December 23, 2021, by U.S. Customs and Border Protection ("CBP'), and (iii) other factors, which may result in a need for us to issue additional debt or obtain new equity financing to adequately fund our existing operations beyond the next twelve months. We continue to actively explore options to obtain additional sources of capital through the issuance of new debt, asset financing or other potential measures for our longer-term needs. However, we may be unable to obtain any desired additional financing on terms favorable to us, or at all, depending on market and other conditions, which could result in curtailment of our current operations and our ability to further invest in our products and new technology. The ability to raise additional financing depends on numerous factors, some of which that are outside of our control, including macroeconomic factors such as the impact of inflation, the level of interest rates, supply chain or other effects from the ongoing conflicts in the Ukraine and the Middle East, general market conditions, the health of financial institutions (including recent bankruptcies and financial difficulties involving certain regional banks and related impacts that have occurred and continue to occur in the banking industry), investors' and lenders' assessments of our prospects and the prospects of the solar industry in general and the ability of our common stock to continue to trade in active markets. Use of estimates Preparation of condensed 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 our solar tracker projects and deriving the standalone selling prices of the individual performance obligations when determining amounts to recognize for revenue, estimating allowances for credit losses and slow-moving and obsolete inventory, determining useful lives of long-lived 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, including tax valuation allowances, as well as other 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 due to risks and uncertainties. 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. We also took action in early 2023 to reallocate cash balances between different financial institutions based on our assessment as to the financial health of certain institutions. We extend credit to customers in the normal course of business, often without requiring collateral. We also perform credit analyses and monitor the financial health of our customers to reduce credit risk. The Company’s accounts receivables are derived from revenue earned from customers primarily located in the U.S. and Australia. No countries other than the U.S. and Australia accou nted 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. We typically rely on a small number of customers that account for a large portion of our revenue each period and our outstanding receivables at each period end. Cash and cash equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Certain of our cash equivalents include deposits in money market funds that invest primarily in short-term securities issued or guaranteed by the U.S. government or its agencies or instrumentalities and contain no restrictions on immediate redemption. These deposits totaled $ 9.3 million at March 31, 2024 and $ 13.9 million at December 31, 2023 . Interest earned on cash equivalents is included in interest income, which is reported net of interest expense in our condensed consolidated statements of comprehensive loss . Restricted cash Cash balances that are legally, contractually or otherwise restricted as to withdrawal or usage are considered restricted cash . Accounts receivable, net Trade receivables are recorded at invoiced amounts, net of allowances for credit losses, 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 credit losses is based on the lifetime expected credit loss of our customer accounts. To assess the lifetime expected credit loss, we utilize a loss rate method that takes into consideration historical experience and certain other factors, as appropriate, such as credit quality and current economic or other conditions that may affect a customer's ability to pay. Provisions for credit losses are included as a component of our selling and marketing expenses. 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 procure and deliver 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. Impairment We review our long-lived assets that are held for use for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that its useful life may be shorter than previously expected. If such impairment indicators are present or other factors exist that indicate the carrying amount of the asset may not be recoverable, we determine whether an impairment has occurred through the use of an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, we recognize a loss for the difference between the carrying amount and the fair value of the asset, which in most cases is estimated based upon Level 3 unobservable inputs. If the asset is determined to have a remaining useful life shorter than previously expected, an adjustment for the shorter remaining life will be made for purposes of recognizing future depreciation expense. Assets are classified as held for sale when we have a plan, approved by the appropriate levels of management, for disposal of such assets, as well as other considerations, and those assets are stated at the lower of carrying value or estimated fair value less estimated costs to sell. Intangible assets, net Intangible assets are recorded at fair value when acquired in connection with a business combination and consist of developed technology in the form of software tools, licenses, and intellectual property, which are amortized over the period of their estimated useful lives, generally 2.5 - 3.0 years, using the straight-line method. Costs incurred to renew or extend the term of a recognized intangible asset, if any, are expensed as incurred. We evaluate intangible assets for impairment using the method described above under "Impairment". Goodwill We recognize goodwill as the excess of the purchase price over the estimated fair value of the identified assets and liabilities acquired in a business combination accounted for using the acquisition method. Goodwill is not amortized but is subject to a periodic assessment for impairment at least annually, or whenever events and circumstances indicate an impairment may exist. Our assessments may include qualitative factors such as current or expected industry and market conditions, our overall financial performance, share price trends, market capitalization and other company-specific events. We operate in one segment, being the consolidated entity, which we have also determined is the reporting unit for goodwill impairment. No impairment of goodwill was recognized as of March 31, 2024 or 2023 . Equity method investment We use the equity method of accounting for investments in which we have the ability to exercise significant influence, but not control, over operating and financial policies of the investee. Our proportionate share of the net income or loss of these investees is included in our condensed consolidated statements of comprehensive loss. Judgment regarding the level of influence over each equity method investment includes considering key factors such as our ownership interest, legal form of the investee, representation on the board of directors or managers, participation in policy-making decisions and material intra-entity transactions. We account for distributions received from equity method investees under the “nature of the distribution” approach based on the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as cash inflows from operating activities) or a return of investment (classified as cash inflows from investing activities). We evaluate equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time and the extent to which the fair value of the equity method investment has been less than its cost, the investee’s financial condition and near-term prospects and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than temporary is recognized in the period identified. We made an accounting policy election that, upon the sale of our equity method investments, we will recognize contractual contingent gains arising from earnout provisions and project escrow releases when such amounts are realizable in periods subsequent to the disposal date. Warranty Typically, the sale of solar 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 also accrue for costs relating to remediation efforts involving product issues we believe require correction. We record a provision for estimated warranty and remediation expenses in cost of sales, net of amounts recoverable from manufacturers under their warranty obligations to us. When historical claims information relating to our equipment is not sufficient, we will base our estimates on industry studies involving the nature and frequency of product failure rates for similar parts used by our competitors, as well as other related businesses. 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 or remediation 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 units ("RSUs"), based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options using the Black-Scholes option pricing model for awards with service-based vesting or through use of a lattice model or a Monte Carlo simulation for stock option and RSU awards with market conditions. The fair value of RSUs with service or performance-based vesting is based on the estimated fair value of the Company's common stock on the date of grant. 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. Stock compensation expense for market-based awards is recognized over the derived service period determined in the valuation model, inclusive of any vesting conditions. Revenue recognition Product revenue is derived from the sale of solar tracker systems and customized components for those systems, individual part sales for certain specific transactions and the sale of term-based software licenses. Term-based licensed software is deployed on the customers’ own servers and has significant standalone functionality. Service revenue includes revenue from shipping and handling services, engineering consulting and pile testing services, our subscription-based enterprise licensing model 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 solar tracker systems are generally under two different types of arrangements: (1) purchase agreements and equipment supply contracts (“Purchase Agreements”), and (2) sale of individual parts for those systems. 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) our solar tracker systems or customized components of those systems, and 2) shipping and handling services. The deliverables included as part of our solar tracker systems 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. Revenue for stand-alone engineering consulting and pile testing services is recognized at a point in time upon completion of the services performed. Sales of individual parts of our solar tracker systems for certain specific transactions include multiple performance obligations consisting of individual parts of those systems. 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 our solar tracker systems, customized components of those systems, and individual parts for certain specific transactions. We also use the expected cost-plus margin approach based on expected third-party shipping and transportation costs to estimate the standalone selling price of our shipping, handling and logistics performance obligations. We use the adjusted market assessment approach for all other performance obligations. 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. The performance obligations in the contracts for our solar tracker systems and customized components of those systems are satisfied over time as work progresses, 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 at a point in time as and when control transfers based on the Incoterms for the contract. Our performance obligations for engineering consulting and pile testing services are recognized at a point in time upon completion of the services. Our performance obligations for term-based software licenses are recognized at a 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 obligations for shipping and handling services are satisfied over time as the services are delivered over the term of the contract. We recognize revenue for subscription and other services on a straight-line basis over the contract period. With regard to support r |
Equity method investment
Equity method investment | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity method investment | 3. Equity method investment On February 9, 2023, we entered into a limited liability company agreement (the "LLC Agreement") with Taihua New Energy (Thailand) Co., LTD ("Taihua"), a leading steel fabricator and an existing vendor, and DAYV LLC, for the creation of Alpha Steel LLC ("Alpha Steel"), a Delaware limited liability company dedicated to producing steel components, including torque tubes, for utility-scale solar projects. The Alpha Steel facility, which is located outside of Houston in Sealy, Texas, began commercial production late in the fourth quarter of 2023. We entered into amendment no. 1 to the Alpha Steel LLC Agreement with Taihua and DAYV LLC on July 28, 2023, to allow for members at their option, and with the approval of the Board of Managers, to make payments in respect of Alpha Steel’s contractual obligations in the event that Alpha Steel does not or is not able to make such payments from its own resources (“Credit Support Payments”). Any such Credit Support Payments will be treated as capital contributions by the members to Alpha Steel, with any member funding more than its ratable share of Credit Support Payments being deemed to have loaned such excess to each underfunding member at the U.S. prime rate plus 2 %. Alpha Steel is intended to enhance our domestic supply chain, our ability to support our customers and the growth of the U.S. solar market, with domestic manufacturing utilizing U.S. steel. We have a 45 % interest in Alpha Steel, which is accounted for under the equity method of accounting. Taihua has a 51 % interest in Alpha Steel and DAYV LLC, an entity owned by members of the Board of Managers of Alpha Steel and a related party with the parent company of Taihua, has a 4 % interest in Alpha Steel. The Chief Executive Officer of Taihua is the General Manager of Alpha Steel. We have equal voting representation with Taihua and DAYV LLC, combined, on Alpha Steel's Board of Managers which will be responsible, through majority vote, for making certain "major decisions" involving Alpha Steel, as specified in the LLC Agreement, including, among other things, approval of an annual business plan. During 2023, we made a required initial capital contribution of $ 0.9 million to Alpha Steel. For the three months ended March 31, 2024, we also made a required additional capital contribution of $ 1.0 million . Pursuant to the LLC Agreement, we could be required to make up to $ 1.6 million in future additional capital contributions as Alpha Steel continues to expand production. For the three months ended March 31, 2024, we recognized a loss of $ 0.3 million which represents our share of the net operating losses incurred by Alpha Steel during the period. In connection with the creation of Alpha Steel, we also entered into a three-year equipment supply agreement (the "Supply Agreement") with Alpha Steel, the terms of which will apply to our equipment purchase orders. Pursuant to the Supply Agreement, we have committed to placing a minimum level of purchase orders for torque tubes with Alpha Steel during the year ended December 31, 2024, with such volume commitments increasing in each of the next two annual periods. In the event we fail to meet our minimum required purchase commitments in any annual period, we may be required to make a cash payment for the net profit attributable to any unfilled requirements, calculated as specified in the agreement, in an amount not to exceed $ 4.0 million in the aggregate. As of March 31, 2024, we had met approximately 6 % of our 2024 annual purchase commitments. The Supply Agreement may be terminated early in accordance with its provisions or may be extended beyond the initial term if mutually agreed to by the parties. At March 31, 2024, in addition to our requirement to meet the remaining minimum purchase obligations for the remainder of the year, as described above, we were contingently liable for unpaid vendor obligations, including issued but unsatisfied purchase orders, of Alpha Steel totaling approximately $ 5.2 million . We expect Alpha Steel will be able to satisfy these obligations with financial resources available to them in the normal course of operations. |
ATM Program
ATM Program | 3 Months Ended |
Mar. 31, 2024 | |
Program Rights Obligations [Abstract] | |
ATM Program | 4. ATM program On September 14, 2022, we filed a prospectus supplement and entered into an equity distribution agreement (as amended from time to time, the "EDA") under which we may from time to time, in one or more transactions, offer and sell newly issued shares of our common stock having an aggregate offering price of up to $ 100 million in "at the money" offerings (the "ATM program"). We have and may continue to use the net proceeds from this offering for general corporate purposes, including working capital and operating expenses. We may also use a portion of such proceeds to acquire or invest in businesses, products, services or technologies. Barclays Capital Inc. ("Barclays") is our sales agent under the EDA. The offering of our common stock under the EDA will terminate upon the earlier of (1) the sale of all common stock subject to the EDA or (2) the termination of the EDA by us or by Barclays as permitted therein. The EDA contains customary representations, covenants and indemnification provisions. We sold no shares of newly issued common stock under the ATM program during the three months ended March 31, 2024, however, during the three months ended March 31, 2023, we sold 2,683,000 shares of newly issued common stock valued at $ 6.5 million for proceeds, net of commissions and fees, of approximately $ 6.3 million , including $ 0.8 million for shares sold but not yet settled as of March 31, 2023. As of March 31, 2024, approximately $ 64.9 million of capacity remained for future sales of our common stock under the ATM program. |
Accounts receivable, net
Accounts receivable, net | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts receivable, net | 5. Accounts receivable, net Accounts receivable consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Trade receivables $ 49,474 $ 46,152 Related party receivables 1,672 868 Revenue recognized in excess of billings 24,456 26,813 Other receivables 4 3 Total 75,606 73,836 Allowance for credit losses ( 9,227 ) ( 8,557 ) Accounts receivable, net $ 66,379 $ 65,279 Information relating to related party receivables at March 31, 2024, may be found below in Note 16, "Related party transactions". Included in total receivables above are amounts billed under retainage provisions totaling $ 0.6 million and $ 0.9 million as of March 31, 2024 and December 31, 2023, respectively, which are due within the next twelve months. Activity in the allowance for credit losses during the three months ended March 31, 2024 and 2023 was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 8,557 $ 1,184 Impact of adoption of ASU 2016-13, effective January 1, 2023 N/A — Additions charged to earnings during the period 670 — Balance at end of period $ 9,227 $ 1,184 |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories, net | 6. Inventories, net Inventories consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Finished goods $ 4,362 $ 4,246 Allowance for slow-moving and obsolete inventory ( 518 ) ( 341 ) Total $ 3,844 $ 3,905 |
Prepaid and other current asset
Prepaid and other current assets | 3 Months Ended |
Mar. 31, 2024 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Prepaid and other current assets | 7. Prepaid and other current assets Prepaid and other current assets consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Vendor deposits $ 5,894 $ 5,667 Vendor deposits with related party 1,504 520 Prepaid expenses 710 1,251 Prepaid taxes 471 447 Deferred cost of revenue 611 666 Surety collateral 55 — Other current assets 4,824 5,538 Total $ 14,069 $ 14,089 At March 31, 2024, other current assets included $ 2.5 million of (i) a short-term, interest-bearing loan to a customer, as well as (ii) a non-interest-bearing customer advance, both of which are for pre-project construction financing activities. These amounts are secured by customer assets and, additionally in one case by a financial guarantee. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | 8. 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 in Austin, Texas and a research and development facility in Seguin, Texas. All of our manufacturing is outsourced to contract manufacturing partners, and we currently do not own or lease any manufacturing facilities. Our expense for our operating leases consisted of the following: Three months ended March 31, (in thousands) 2024 2023 Operating lease cost $ 309 $ 229 Short-term lease cost 93 92 Total lease cost $ 402 $ 321 Reported in: Cost of revenue $ 236 $ 215 Research and development 14 15 Selling and marketing 48 15 General and administrative 104 76 Total lease cost $ 402 $ 321 Future remaining operating lease payment obligations were as follows: (in thousands) March 31, Remainder of 2024 $ 607 2025 755 2026 219 2027 192 2028 16 Total lease payments 1,789 Less: imputed interest ( 113 ) Present value of operating lease liabilities $ 1,676 Current portion of operating lease liability $ 742 Operating lease liability, net of current portion 934 Present value of operating lease liabilities $ 1,676 |
Property and equipment, net
Property and equipment, net | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment, net | 9. Property and equipment, net Property and equipment consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Leasehold improvements $ 162 $ 157 Field equipment 1,062 1,062 Information technology equipment 508 466 Tooling 1,381 1,014 Capitalized software 761 734 Total 3,874 3,433 Accumulated depreciation ( 1,880 ) ( 1,610 ) Property and equipment, net $ 1,994 $ 1,823 Depreciation expense recognized for the three months ended March 31, 2024 and 2023, totaled $ 0.3 million and $ 0.2 million , respectively. |
Intangible assets, net and good
Intangible assets, net and goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, net and goodwill | 10. Intangible assets, net and goodwill Intangible assets consisted of the following: (in thousands) Estimated Useful Lives (Years) March 31, 2024 December 31, 2023 Developed technology 2.5 – 3.0 $ 2,529 $ 2,555 Total 2,529 2,555 Accumulated amortization ( 2,130 ) ( 2,013 ) Intangible assets, net $ 399 $ 542 Amortization expense recognized for the three months ended March 31, 2024 and 2023, totaled $ 0.1 million and $ 0.1 million , respectively. During the three months ended March 31, 2024 and 2023, activity in our goodwill balance was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 7,353 $ 7,538 Translation ( 140 ) ( 185 ) Balance at end of period $ 7,213 $ 7,353 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Other Borrowings | 11. Debt On April 30, 2021, we entered into our Credit Facility with various lenders, including Barclays Bank PLC, as issuing lender, the swingline lender and as administrative agent providing aggregate commitments of up to $ 100.0 million. We had not made any draws on our Credit Facility as of March 31, 2024. However, as of March 31, 2024, we had $ 1.9 million in letters of credit outstanding that reduced our unused borrowing capacity to approximately $ 98.1 million . At March 31, 2024 , we have deposited $ 1.9 million in an escrow account with Barclays related to our outstanding letters of credit, which is reflected as restricted cash in our condensed consolidated balance sheets. Under the Credit Facility, we were required to maintain a liquidity level (defined as unrestricted cash and cash equivalents plus the available borrowing capacity under the Credit Facility) of no less than $ 125.0 million at each quarter end in order to utilize the Credit Facility. As of March 31, 2024, we were under the required minimum liquidity level thus not allowing us to continue to access our Credit Facility up to the available borrowing capacity. The Credit Facility provided for payment of commitment fees of 0.50 % per annum on our unused borrowing capacity and outstanding letter of credit fees of 3.25 % per annum during its term. During the three months ended March 31, 2024 and 2023, we incurred interest expense of $ 0.3 million in each period, for commitment and letter of credit fees, as well as amortization of costs relating to the establishment of the Credit Facility. Our Credit Facility expired unused on April 30, 2024. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses and Other Current Liabilities Abstract | |
Accrued Expenses and Other Current Liabilities | 12. Accrued expenses and other current liabilities Accrued expenses and other current liabilities consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Accrued cost of revenue $ 22,423 $ 26,773 Related party accrued cost of revenue 1,370 1,451 Accrued compensation 3,650 3,858 Other accrued expenses 2,247 2,766 Total accrued expenses $ 29,690 $ 34,848 Warranty reserves $ 6,992 $ 7,279 Current portion of operating lease liability 742 740 Non-federal tax obligations 125 119 Total other current liabilities $ 7,859 $ 8,138 Information relating to our related party accrued cost of revenue at March 31, 2024 and December 31, 2023 may be found below in Note 16, "Related party transactions". Other accrued expenses primarily include amounts due for (i) legal costs associated with outstanding corporate or legal matters and (ii) other professional services. Activity by period in the Company's warranty accruals was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 11,002 $ 12,426 Warranties issued and remediation added during the period 838 1,543 Settlements made during the period ( 849 ) ( 1,103 ) Changes in liability for pre-existing warranties ( 519 ) ( 309 ) Balance at end of period $ 10,472 $ 12,557 Warranty accruals are reported in: Other current liabilities $ 6,992 $ 8,085 Other non-current liabilities 3,480 4,472 Balance at end of period $ 10,472 $ 12,557 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income taxes For the three months ended March 31, 2024 and 2023, we recorded an income tax benefit of $ 0.01 million and an income tax expense of $ 0.13 million respectively. These amounts for each period were lower than the statutory rate of 21 %, primarily due to a valuation allowance established against the U.S. deferred tax assets. We have had no material change in our unrecognized tax benefits since December 31, 2023. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of March 31, 2024 and December 31, 2023 , we had no accrued interest or penalties related to unrecognized tax benefits. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and contingencies We may become involved in various claims, lawsuits, investigations, and other proceedings, arising in the normal course of business. We accrue a liability when information available prior to the issuance of our 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. If the reasonable estimate of the probable loss is a range, we record an accrual for the most likely estimate of the loss, or the low end of the range if there is no one best estimate. We adjust our 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. In March of 2023, CBP issued notices of tariff assessment that indicated an action taken at the Import Specialist (i.e., the port) level with respect to merchandise imported from Thailand under entry number 004-1058562-5 (the “625 Assessment”) and entry number 004-1063793-9 (the “Original 939 Assessment”, and collectively with the 625 Assessment, the “Original CBP Assessments”). The Original CBP Assessments related to certain torque beams that are used in our Voyager+ product that were imported in 2022. In the Original CBP Assessments, CPB asserted that Section 301 China tariffs, Section 232 steel & aluminum tariffs, and antidumping and countervailing duties applied to the merchandise. Based on correspondence received to date from CBP and our calculations based on applicable duty and tariff rates, the 625 Assessment is currently for approximately $ 2.84 million. In September of 2023, CBP informed us (the "Revised 939 Assessment", and together with the 625 Assessment, the "Revised CBP Assessments") that the amount owed under the Original 939 Assessment was being revised downward to approximately $ 2.01 million. In particular, CBP accepted our position that the Section 301 tariffs of 25 % or 7.5 % of the value of the merchandise, depending on tariff classification, as well as the antidumping and countervailing duties, previously assessed under the Original 939 Assessment are not applicable as they are only applicable to articles that originate in China and that, in this case, the finished goods are products of Thailand. Upon review of the facts involved, and in consultation with outside legal counsel, we believe that the remaining amounts claimed in the Revised CBP Assessments are incorrect. In particular, the Section 301 tariffs of 25% or 7.5% of the value of the merchandise, depending on tariff classification, as well as the antidumping and countervailing duties, are not applicable under the 625 Assessment for the same reason stated above with respect to the Revised 939 Assessment, which has been accepted by CBP . Moreover, with respect to both Revised CBP Assessments, we believe that the goods in question were properly classified as parts of structures at the time of importation and that when properly classified, the beams and other materials are not subject to Section 232 duties applicable to more basic steel products. CBP has legally finalized both Revised CBP Assessments. We filed a formal protest for the 625 Assessment in September of 2023 and for the Revised 939 Assessment in March of 2024. Based on the above, and under the relevant accounting guidance related to loss contingencies, we have made no accrual for the amounts claimed by CBP as of March 31, 2024, as we do not consider these amounts to be a probable obligation, as such term is defined and interpreted under the relevant accounting guidance, for us at this time. However, because matters of this nature are subject to inherent uncertainties, and unfavorable rulings or developments, including future assessments of additional duties or tariffs owed in respect of other shipments or other materials beyond what is presently included in the Revised CBP Assessments, could occur despite our belief that the tariffs and duties asserted are incorrect, there can be no certainty that the Company may not ultimately incur charges that are not currently recorded as liabilities. Since the outcome of these matters cannot be predicted with certainty, the costs associated with them could have a material adverse effect on our consolidated results of operations, financial position, or liquidity. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 15. Stock-based compensation Stock compensation expense for each period was as follows: Three months ended March 31, (in thousands) 2024 2023 Cost of revenue $ 216 $ 816 Research and development 81 249 Selling and marketing 44 384 General and administrative 1,298 3,441 Total stock compensation expense $ 1,639 $ 4,890 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | 16. Related party transactions Transaction with Ayna.AI LLC In February 2022, we engaged Ayna.AI LLC (as successor in interest to Fernweh Engaged Operator Company LLC) (“Ayna”) to support us with improvements to our processes and performance in various areas including design, sourcing, logistics, pricing, software and standard configuration. The foregoing engagement constituted a related party transaction 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 Ayna. In addition, Discrimen LLC is an investor in Ayna, and Isidoro Quiroga Cortés is affiliated with that entity. Isidoro Quiroga Cortés is also on the board of directors of Ayna. On Septemb er 13, 2023, we executed a termination of the master services agreement and statement of work (collectively, the "Service Agreement") with Ayna and Fernweh Group LLC, the parent company of Fernweh Engaged Operator Company LLC. For the three months ended March 31, 2023, we incurred $ 2.3 million of general and administrative expense, including expense relating to stock-based compensation awards, and made cash payments of $ 0.8 million associated with our engagement of Ayna. Related party receivables and payables We have related party receivables at March 31, 2024 and December 31, 2023, totaling $ 1.7 million and $ 0.9 million , respectively, for future material costs discounts contractually owed to us by Alpha Steel in connection with the expected receipt of manufacturing incentives available to Alpha Steel under the Inflation Reduction Act as costs are incurred by Alpha Steel to purchase raw materials and manufacture torque tubes and other products that will be used to fulfill purchase orders we issue to Alpha Steel. We also have related party liabilities to Alpha Steel at March 31, 2024 and December 31, 2023, totaling $ 1.4 million and $ 1.5 million , respectively, for the accrued cost of revenue recognized on certain of our customer projects associated with the cost of products that are being manufactured for us by Alpha Steel. During the three months ended March 31, 2024, we made vendor deposits of $ 1.6 million to Alpha Steel and received invoices from Alpha Steel totaling $ 1.6 million . Our balance of vendor deposits with Alpha Steel as of March 31, 2024 and December 31, 2023 is shown in Note 7, "Prepaids and other current assets" above as "Vendor deposits with related party". After payments and application of vendor deposits to invoices received, we owe $ 0.4 million to Alpha Steel, which is included in our accounts payable balance at March 31, 2024 ( no ne at December 31, 2023 ) in our condensed consolidated balance sheets. |
Net Loss Per Share
Net Loss Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 17. Net loss per share Three months ended March 31, 2024 2023 Net loss (in thousands) $ ( 8,771 ) $ ( 11,762 ) Weighted average shares outstanding for calculating basic and diluted loss per share 125,569,375 106,791,198 Basic and diluted loss per share $ ( 0.07 ) $ ( 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. For the three months ended March 31, 2024 2023 Anti-dilutive securities excluded from calculating dilutive loss per share: Shares of common stock issuable under stock option plans outstanding 2,427,526 6,544,725 Shares of common stock issuable upon vesting of RSUs 12,178,375 6,612,849 Potential common shares excluded from diluted net loss per share calculation 14,605,901 13,157,574 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent events | 18. Subsequent events On April 3, 2024, we entered into a First Amendment (“the Amendment”) to Master Project Supply Agreements dated October 11, 2021 with a customer and major solar project developer. As of March 31, 2024, our customer owed us approximately $ 30.8 million for project equipment we had previously completed and made available to the customer pursuant to the Master Project Supply Agreements. The Amendment was executed in consideration of and concurrent with the sale of the uncompleted projects by our customer, including the amended Master Project Supply Agreements, to a new third-party developer (“the Purchaser”), who will assume certain obligations to us under the amended Master Project Supply Agreements. Pursuant to the Amendment, the only completed project equipment that will be provided to the Purchaser are foundation piles. All remaining equipment completed and made available to our customer under the original Master Project Supply Agreements will be retained by us and returned to our inventory in exchange for forgiveness of the associated outstanding receivable balance owed by our customer, to the extent of the current fair value of the retained equipment, which approximated $ 13.2 million . During the three months ended March 31, 2024, we recorded an additional estimated credit loss provision of $ 0.7 million to recognize the difference between the receivable balance owed us and the expected cash to be received from the Purchaser plus the current estimated fair value of the equipment that would be added to our inventory pursuant to this Amendment. At March 31, 2024, we had a total credit loss reserve relating to this customer of approximately $ 9.0 million . Upon execution of the Amendment, we received a cash payment of $ 9.0 million from the Purchaser to acquire the foundation piles and we anticipate receiving certain additional amounts for temporary storage and upon final delivery to the project sites, which is expected to occur no later than the fourth quarter of 2024. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 (“U.S. 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 of a normal recurring nature have been made that are considered necessary for a fair statement of our financial position as of March 31, 2024, and December 31, 2023, our results of operations for the three months ended March 31, 2024 and 2023, and our cash flows for the three months ended March 31, 2024 and 2023. The condensed consolidated balance sheet as of December 31, 2023 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, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. 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 U.S. 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, 2023 (our "2023 Annual Report"). We currently operate in one business segment, the manufacturing and servicing of solar tracker systems |
Liquidity | Liquidity We have incurred cumulative losses since inception and have a history of cash outflows from operations. As of March 31, 2024, we had $ 14.0 million of cash on hand, $ 45.7 million of working capital and approximately $ 64.9 million of remaining capacity available for future sales of our common stock under our ATM program as defined and described further in Note 4 below. There can be no assurance that we will be able to sell any additional shares of our common stock under the ATM program and no assurance regarding the price at which we will be able to sell such shares, and any sales of our common stock under the ATM program may be at prices that result in additional dilution to our existing stockholders. On December 22, 2023, we received notification from The Nasdaq Stock Market LLC (“Nasdaq”) that we were not in compliance with the requirement to maintain a minimum closing bid price of $ 1.00 per share, as set forth in Nasdaq Listing Rule 5450(a)(1), because the closing bid price of the Company’s common stock was below $ 1.00 per share for 30 consecutive business days. The notification does not impact the listing of our common stock on the Nasdaq Global Market at this time. In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we have a period of 180 calendar days from the date of notification, or until June 19, 2024, to regain compliance with the minimum bid price requirement. During this period, our common stock will continue to trade on the Nasdaq Global Market. If at any time before June 19, 2024 the bid price of our common stock closes at or above $ 1.00 per share for a minimum of ten consecutive business days, Nasdaq will provide written notification that we have achieved compliance with this minimum bid price requirement. In the event we do not regain compliance by June 19, 2024, we may be eligible for an additional 180 calendar day compliance period to demonstrate compliance with the minimum bid price requirement. To qualify for the additional 180-day period, we may be required to meet the continued listing requirements for market value of publicly held shares and all other initial listing standards (with the exception of the bid price requirement) and transfer our listing to the Nasdaq Capital Market. In addition, we will need to provide written notice to Nasdaq of our intention to cure the deficiency during the second compliance period by effecting a reverse stock split, if necessary. If we do not qualify for the second compliance period or fail to regain compliance during the second 180-day period, then Nasdaq will notify us that our common stock is subject to delisting. As of March 31, 2024, we were not in compliance with the minimum liquidity covenant in our existing Senior Secured Revolving Credit Facility (the "Credit Facility") which prevented us from borrowing under the Credit Facility prior to its termination on April 30, 2024. Also, as of March 31, 2024, we had a material contractual obligation that could require us to make additional capital contributions of up to $ 1.6 million to Alpha Steel, as described further in Note 3, "Equity method investment". The most notable incentive program impacting our U.S. business has historically been the investment tax credit ("ITC") for solar energy projects, which allows taxpayers to offset their U.S. federal income tax liability by a certain percentage of their cost basis in solar energy systems placed in service for commercial use. The Inflation Reduction Act of 2022, passed by the U.S. Congress and signed into law by President Biden on August 16, 2022, expanded and extended the tax credits and other tax benefits available to solar energy projects and the solar energy supply chain. ITCs have been extended for such projects through at least 2032 and, depending on the location of a particular project and its ability to satisfy certain labor and domestic content requirements, the ITC percentage can range between 30 % and 50 %. U.S. manufacturers of specific solar components are now eligible to claim production tax credits as an alternative to the ITC. Implementing regulations for this law are, in certain cases, still being finalized and the impact of these regulations continue to be evaluated by developers of new solar projects and manufacturers of solar components. Our investment in and commitments made to Alpha Steel will allow us to obtain certain benefits as a result of this new production tax credit program. We have taken steps to expand and diversify our manufacturing partnerships and have adjusted our modes of transportation to mitigate the impact of headwinds that might arise in the global supply chain and logistics markets. As an example, we modified our ocean freight from previously using charter shipments to now using containerized shipments as costs in the container market began to decrease starting in 2022. We continue to monitor the logistics markets and will continue to evaluate our use of various modes of transportation when warranted to optimize our transportation costs. Additionally, from February 2022 to September 2023, we utilized a related-party consulting firm to support us in making improvements to our processes and performance in various areas, including design, sourcing, logistics, pricing, software and our distributed generation business. For further information regarding this consulting firm, see Note 16, "Related party transactions" below. Similar to previous periods, we continue to evaluate our opportunities in 2024 to address existing market challenges, our cost structure and our historical use of cash. Further, in 2023, we introduced a new mounting solution to support the installation and use of U.S.-manufactured thin-film modules, Pioneer, our 1P solar tracker solution became certified, and we introduced SUNOPS, a cloud-based, tracker agnostic solar asset monitoring solution allowing asset owners and managers to evaluate the operation and performance of their solar deployments. Additionally, we have seen improvements in the logistics markets and easing of supply chain constraints since 2022. These factors contributed to us having positive gross profit during each quarter in 2023, a first since our IPO in April 2021. In accordance with Accounting Standards Codification ("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 our condensed consolidated financial statements are issued. Management believes that our existing cash on hand, including cash received in April 2024 as a result of our agreement with a major customer as discussed further in Note 18, "Subsequent events" below, as well as the continuing impact of certain of the actions described above and our expectations of (i) improved market conditions, (ii) the expected timing of customer project activity, including activity related to certain large project awards received in 2023, and (iii) positive results in recent periods from our efforts to increase our direct product margins, will allow us to grow profitably and generate positive cash flow from operations during the next twelve months in amounts that will be sufficient, along with our other available resources such as our existing working capital and, if conditions become more conducive, the remaining capacity available for future sales of our common stock under our ATM program, to fund our operations for at least one year from the date of issuance of the condensed consolidated financial statements. While there are already many underlying drivers of growth in the solar industry, the expected positive impact on demand for our products, or the timing of construction activity by existing customers and solar project developers, could take longer than expected to occur. In addition, domestic and international market conditions could deteriorate significantly from what we currently expect, and regulatory and international trade policies could become more stringent as a result of (i) findings from an ongoing investigation by the U.S. Department of Commerce (the Solar Circumvention Investigation") in response to a petition by Auxin Solar, Inc. of claims related to alleged circumvention of U.S. antidumping and countervailing duties ("AD/CVD") by solar manufacturers in certain Southeast Asian countries, (ii) enforcement of the Uyghur Forced Labor Prevention Act ("UFLPA") passed by the U.S. Congress and signed into law by President Biden on December 23, 2021, by U.S. Customs and Border Protection ("CBP'), and (iii) other factors, which may result in a need for us to issue additional debt or obtain new equity financing to adequately fund our existing operations beyond the next twelve months. We continue to actively explore options to obtain additional sources of capital through the issuance of new debt, asset financing or other potential measures for our longer-term needs. However, we may be unable to obtain any desired additional financing on terms favorable to us, or at all, depending on market and other conditions, which could result in curtailment of our current operations and our ability to further invest in our products and new technology. The ability to raise additional financing depends on numerous factors, some of which that are outside of our control, including macroeconomic factors such as the impact of inflation, the level of interest rates, supply chain or other effects from the ongoing conflicts in the Ukraine and the Middle East, general market conditions, the health of financial institutions (including recent bankruptcies and financial difficulties involving certain regional banks and related impacts that have occurred and continue to occur in the banking industry), investors' and lenders' assessments of our prospects and the prospects of the solar industry in general and the ability of our common stock to continue to trade in active markets. |
Use of estimates | Use of estimates Preparation of condensed 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 our solar tracker projects and deriving the standalone selling prices of the individual performance obligations when determining amounts to recognize for revenue, estimating allowances for credit losses and slow-moving and obsolete inventory, determining useful lives of long-lived 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, including tax valuation allowances, as well as other 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 due to risks and uncertainties. |
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. We also took action in early 2023 to reallocate cash balances between different financial institutions based on our assessment as to the financial health of certain institutions. We extend credit to customers in the normal course of business, often without requiring collateral. We also perform credit analyses and monitor the financial health of our customers to reduce credit risk. The Company’s accounts receivables are derived from revenue earned from customers primarily located in the U.S. and Australia. No countries other than the U.S. and Australia accou nted 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. We typically rely on a small number of customers that account for a large portion of our revenue each period and our outstanding receivables at each period end. |
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. Certain of our cash equivalents include deposits in money market funds that invest primarily in short-term securities issued or guaranteed by the U.S. government or its agencies or instrumentalities and contain no restrictions on immediate redemption. These deposits totaled $ 9.3 million at March 31, 2024 and $ 13.9 million at December 31, 2023 . Interest earned on cash equivalents is included in interest income, which is reported net of interest expense in our condensed consolidated statements of comprehensive loss |
Restricted Cash | Restricted cash Cash balances that are legally, contractually or otherwise restricted as to withdrawal or usage are considered restricted cash |
Accounts receivable, net | Accounts receivable, net Trade receivables are recorded at invoiced amounts, net of allowances for credit losses, 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 credit losses is based on the lifetime expected credit loss of our customer accounts. To assess the lifetime expected credit loss, we utilize a loss rate method that takes into consideration historical experience and certain other factors, as appropriate, such as credit quality and current economic or other conditions that may affect a customer's ability to pay. Provisions for credit losses are included as a component of our selling and marketing expenses. 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 procure and deliver tracker systems and related equipment. Further information may be found below in our revenue recognition policy . |
Inventories, 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. |
Impairment | Impairment We review our long-lived assets that are held for use for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that its useful life may be shorter than previously expected. If such impairment indicators are present or other factors exist that indicate the carrying amount of the asset may not be recoverable, we determine whether an impairment has occurred through the use of an undiscounted cash flow analysis of the asset at the lowest level for which identifiable cash flows exist. If an impairment has occurred, we recognize a loss for the difference between the carrying amount and the fair value of the asset, which in most cases is estimated based upon Level 3 unobservable inputs. If the asset is determined to have a remaining useful life shorter than previously expected, an adjustment for the shorter remaining life will be made for purposes of recognizing future depreciation expense. Assets are classified as held for sale when we have a plan, approved by the appropriate levels of management, for disposal of such assets, as well as other considerations, and those assets are stated at the lower of carrying value or estimated fair value less estimated costs to sell. |
Intangible assets, net | Intangible assets, net Intangible assets are recorded at fair value when acquired in connection with a business combination and consist of developed technology in the form of software tools, licenses, and intellectual property, which are amortized over the period of their estimated useful lives, generally 2.5 - 3.0 years, using the straight-line method. Costs incurred to renew or extend the term of a recognized intangible asset, if any, are expensed as incurred. We evaluate intangible assets for impairment using the method described above under "Impairment". |
Goodwill | Goodwill We recognize goodwill as the excess of the purchase price over the estimated fair value of the identified assets and liabilities acquired in a business combination accounted for using the acquisition method. Goodwill is not amortized but is subject to a periodic assessment for impairment at least annually, or whenever events and circumstances indicate an impairment may exist. Our assessments may include qualitative factors such as current or expected industry and market conditions, our overall financial performance, share price trends, market capitalization and other company-specific events. We operate in one segment, being the consolidated entity, which we have also determined is the reporting unit for goodwill impairment. No impairment of goodwill was recognized as of March 31, 2024 or 2023 . |
Equity method investments | Equity method investment We use the equity method of accounting for investments in which we have the ability to exercise significant influence, but not control, over operating and financial policies of the investee. Our proportionate share of the net income or loss of these investees is included in our condensed consolidated statements of comprehensive loss. Judgment regarding the level of influence over each equity method investment includes considering key factors such as our ownership interest, legal form of the investee, representation on the board of directors or managers, participation in policy-making decisions and material intra-entity transactions. We account for distributions received from equity method investees under the “nature of the distribution” approach based on the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as cash inflows from operating activities) or a return of investment (classified as cash inflows from investing activities). We evaluate equity method investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. Factors considered by the Company when reviewing an equity method investment for impairment include the length of time and the extent to which the fair value of the equity method investment has been less than its cost, the investee’s financial condition and near-term prospects and the intent and ability to hold the investment for a period of time sufficient to allow for anticipated recovery. An impairment that is other-than temporary is recognized in the period identified. We made an accounting policy election that, upon the sale of our equity method investments, we will recognize contractual contingent gains arising from earnout provisions and project escrow releases when such amounts are realizable in periods subsequent to the disposal date. |
Warranty | Warranty Typically, the sale of solar 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 also accrue for costs relating to remediation efforts involving product issues we believe require correction. We record a provision for estimated warranty and remediation expenses in cost of sales, net of amounts recoverable from manufacturers under their warranty obligations to us. When historical claims information relating to our equipment is not sufficient, we will base our estimates on industry studies involving the nature and frequency of product failure rates for similar parts used by our competitors, as well as other related businesses. 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 or remediation 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 | Stock-based compensation We recognize compensation expense for all share-based payment awards made, including stock options and restricted stock units ("RSUs"), based on the estimated fair value of the award on the grant date. We calculate the fair value of stock options using the Black-Scholes option pricing model for awards with service-based vesting or through use of a lattice model or a Monte Carlo simulation for stock option and RSU awards with market conditions. The fair value of RSUs with service or performance-based vesting is based on the estimated fair value of the Company's common stock on the date of grant. 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. Stock compensation expense for market-based awards is recognized over the derived service period determined in the valuation model, inclusive of any vesting conditions. |
Revenue recognition | Revenue recognition Product revenue is derived from the sale of solar tracker systems and customized components for those systems, individual part sales for certain specific transactions and the sale of term-based software licenses. Term-based licensed software is deployed on the customers’ own servers and has significant standalone functionality. Service revenue includes revenue from shipping and handling services, engineering consulting and pile testing services, our subscription-based enterprise licensing model 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 solar tracker systems are generally under two different types of arrangements: (1) purchase agreements and equipment supply contracts (“Purchase Agreements”), and (2) sale of individual parts for those systems. 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) our solar tracker systems or customized components of those systems, and 2) shipping and handling services. The deliverables included as part of our solar tracker systems 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. Revenue for stand-alone engineering consulting and pile testing services is recognized at a point in time upon completion of the services performed. Sales of individual parts of our solar tracker systems for certain specific transactions include multiple performance obligations consisting of individual parts of those systems. 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 our solar tracker systems, customized components of those systems, and individual parts for certain specific transactions. We also use the expected cost-plus margin approach based on expected third-party shipping and transportation costs to estimate the standalone selling price of our shipping, handling and logistics performance obligations. We use the adjusted market assessment approach for all other performance obligations. 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. The performance obligations in the contracts for our solar tracker systems and customized components of those systems are satisfied over time as work progresses, 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 at a point in time as and when control transfers based on the Incoterms for the contract. Our performance obligations for engineering consulting and pile testing services are recognized at a point in time upon completion of the services. Our performance obligations for term-based software licenses are recognized at a 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 obligations for shipping and handling services are satisfied over time as the services are delivered over the term of the contract. We recognize revenue for subscription and 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 billings, and deferred revenue in the condensed consolidated balance sheets. We have elected to use the practical expedient of expensing incremental costs of obtaining a contract as incurred since the majority of the performance obligations in our contracts are satisfied in less than one year. We may receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities, which are reflected as “deferred revenue” in our condensed consolidated balance sheets. Customer deposits are short term as the related performance obligations are typically fulfilled within 12 months. Changes in deferred revenue relate to fluctuations in the timing of customer deposits and completion of performance obligations. Revenue recognized during the three months ended March 31, 2024 and 2023, from amounts included in deferred revenue at December 31, 2023 and December 31, 2022, totaled $ 2.4 million and $ 7.6 million , respectively. Cost of revenue consists primarily of costs related to raw materials, equipment manufacturing activities, freight and delivery, product warranty, remediation 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. Cost of revenue owed but not yet paid is recorded as accrued cost of revenue in the accompanying condensed consolidated financial statements. 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. |
Recent accounting pronouncements adopted | Recent accounting and regulatory pronouncements not yet adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which will become effective for us for our year end 2024 financial reporting and our interim reporting beginning January 1, 2025. ASU 2023-07 requires public companies to disclose significant segment expenses and other segment items on an annual and interim basis and will require interim disclosures about a reportable segment's profit or loss and assets that are currently required annually. As noted above, we operate in one segment. We are currently evaluating the impact of ASU 2023-07 on our existing disclosures. ASU 2023-07 will be applied retrospectively to all periods when presented in our consolidated financial statements for the year ending December 31, 2024. In December 2023, the FASB issued ASU No. 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). ASU 2023-09 requires companies to disclose (i) additional categories of information about federal, state and foreign income taxes above a quantitative threshold in their rate reconciliation table and (ii) income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods, as well as other disclosure changes. As an emerging growth company, we are not required to adopt ASU 2023-09 prior to 2026, although earlier adoption is permitted. We are currently evaluating the impact of ASU 2023-09 on our existing income tax disclosures. In March 2024, the U.S. Securities and Exchange Commission ("SEC") adopted the final rule under SEC Release No. 33-11275, The Enhancement and Standardization of Climate-Related Disclosures for Investors. This rule would require registrants to disclose certain climate-related information in registration statements and annual reports. In April 2024, the SEC issued a stay of the final rules pending a judicial review of the validity of the rules by the Eighth Circuit Court of Appeals. We are currently evaluating the final rule to determine its impact on our disclosures. Other standards or regulatory requirements that have been issued but not yet adopted as of March 31, 2024 , are either not applicable to us or are not expected to have any material impact upon adoption. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. There was no impact on our financial condition or results of operations as a result of the reclassification. |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of accounts receivable, net | Accounts receivable consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Trade receivables $ 49,474 $ 46,152 Related party receivables 1,672 868 Revenue recognized in excess of billings 24,456 26,813 Other receivables 4 3 Total 75,606 73,836 Allowance for credit losses ( 9,227 ) ( 8,557 ) Accounts receivable, net $ 66,379 $ 65,279 |
Schedule of Accounts Receivable Allowance for Credit Loss | Activity in the allowance for credit losses during the three months ended March 31, 2024 and 2023 was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 8,557 $ 1,184 Impact of adoption of ASU 2016-13, effective January 1, 2023 N/A — Additions charged to earnings during the period 670 — Balance at end of period $ 9,227 $ 1,184 |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Finished goods $ 4,362 $ 4,246 Allowance for slow-moving and obsolete inventory ( 518 ) ( 341 ) Total $ 3,844 $ 3,905 |
Prepaid and other current ass_2
Prepaid and other current assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid and other current assets | Prepaid and other current assets consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Vendor deposits $ 5,894 $ 5,667 Vendor deposits with related party 1,504 520 Prepaid expenses 710 1,251 Prepaid taxes 471 447 Deferred cost of revenue 611 666 Surety collateral 55 — Other current assets 4,824 5,538 Total $ 14,069 $ 14,089 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Summary of Lease Expense | Our expense for our operating leases consisted of the following: Three months ended March 31, (in thousands) 2024 2023 Operating lease cost $ 309 $ 229 Short-term lease cost 93 92 Total lease cost $ 402 $ 321 Reported in: Cost of revenue $ 236 $ 215 Research and development 14 15 Selling and marketing 48 15 General and administrative 104 76 Total lease cost $ 402 $ 321 |
Summary of Future Remaining Lease Payments Obligations | Future remaining operating lease payment obligations were as follows: (in thousands) March 31, Remainder of 2024 $ 607 2025 755 2026 219 2027 192 2028 16 Total lease payments 1,789 Less: imputed interest ( 113 ) Present value of operating lease liabilities $ 1,676 Current portion of operating lease liability $ 742 Operating lease liability, net of current portion 934 Present value of operating lease liabilities $ 1,676 |
Property and equipment, net (Ta
Property and equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: (in thousands) March 31, 2024 December 31, 2023 Leasehold improvements $ 162 $ 157 Field equipment 1,062 1,062 Information technology equipment 508 466 Tooling 1,381 1,014 Capitalized software 761 734 Total 3,874 3,433 Accumulated depreciation ( 1,880 ) ( 1,610 ) Property and equipment, net $ 1,994 $ 1,823 |
Intangible assets, net and go_2
Intangible assets, net and goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of intangible assets | Intangible assets consisted of the following: (in thousands) Estimated Useful Lives (Years) March 31, 2024 December 31, 2023 Developed technology 2.5 – 3.0 $ 2,529 $ 2,555 Total 2,529 2,555 Accumulated amortization ( 2,130 ) ( 2,013 ) Intangible assets, net $ 399 $ 542 |
Schedule of goodwill activity | During the three months ended March 31, 2024 and 2023, activity in our goodwill balance was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 7,353 $ 7,538 Translation ( 140 ) ( 185 ) Balance at end of period $ 7,213 $ 7,353 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 December 31, 2023 Accrued cost of revenue $ 22,423 $ 26,773 Related party accrued cost of revenue 1,370 1,451 Accrued compensation 3,650 3,858 Other accrued expenses 2,247 2,766 Total accrued expenses $ 29,690 $ 34,848 Warranty reserves $ 6,992 $ 7,279 Current portion of operating lease liability 742 740 Non-federal tax obligations 125 119 Total other current liabilities $ 7,859 $ 8,138 |
Schedule of warranty accruals | Activity by period in the Company's warranty accruals was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 11,002 $ 12,426 Warranties issued and remediation added during the period 838 1,543 Settlements made during the period ( 849 ) ( 1,103 ) Changes in liability for pre-existing warranties ( 519 ) ( 309 ) Balance at end of period $ 10,472 $ 12,557 Warranty accruals are reported in: Other current liabilities $ 6,992 $ 8,085 Other non-current liabilities 3,480 4,472 Balance at end of period $ 10,472 $ 12,557 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Changes in Product Warranty Reserves | Activity by period in the Company's warranty accruals was as follows: Three months ended March 31, (in thousands) 2024 2023 Balance at beginning of period $ 11,002 $ 12,426 Warranties issued and remediation added during the period 838 1,543 Settlements made during the period ( 849 ) ( 1,103 ) Changes in liability for pre-existing warranties ( 519 ) ( 309 ) Balance at end of period $ 10,472 $ 12,557 Warranty accruals are reported in: Other current liabilities $ 6,992 $ 8,085 Other non-current liabilities 3,480 4,472 Balance at end of period $ 10,472 $ 12,557 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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) 2024 2023 Cost of revenue $ 216 $ 816 Research and development 81 249 Selling and marketing 44 384 General and administrative 1,298 3,441 Total stock compensation expense $ 1,639 $ 4,890 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Income (Loss) Per Share | Three months ended March 31, 2024 2023 Net loss (in thousands) $ ( 8,771 ) $ ( 11,762 ) Weighted average shares outstanding for calculating basic and diluted loss per share 125,569,375 106,791,198 Basic and diluted loss per share $ ( 0.07 ) $ ( 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. For the three months ended March 31, 2024 2023 Anti-dilutive securities excluded from calculating dilutive loss per share: Shares of common stock issuable under stock option plans outstanding 2,427,526 6,544,725 Shares of common stock issuable upon vesting of RSUs 12,178,375 6,612,849 Potential common shares excluded from diluted net loss per share calculation 14,605,901 13,157,574 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||
Dec. 22, 2023 Days $ / shares | Aug. 16, 2022 | Mar. 31, 2024 USD ($) Days $ / shares | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) $ / shares | Sep. 14, 2022 USD ($) | |
Accumulated deficit | $ (307,906) | $ (299,135) | ||||
Net cash used in operating activities | 11,857 | $ 8,316 | ||||
Cash | 14,000 | |||||
Working capital | 45,700 | |||||
Common stock, reserved for future issuance, value | $ 64,900 | |||||
Consecutive business days | Days | 30 | 10 | ||||
Description of closing bid pric of our common stock | If at any time before June 19, 2024 the bid price of our common stock closes at or above $1.00 per share for a minimum of ten consecutive business days, Nasdaq will provide written notification that we have achieved compliance with this minimum bid price requirement. | |||||
Concentrations of credit risk, percentage | 10% | |||||
Warranty description | We provide standard assurance type warranties for our products for periods generally ranging from five to ten years | |||||
Impairment of goodwill | $ 0 | 0 | ||||
Revenue recognized included in deferred revenue | $ 2,400 | 7,600 | ||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | ||||
Money Market Funds, at Carrying Value | $ 9,300 | $ 13,900 | ||||
Stock based compensation expense | 1,639 | 4,890 | ||||
General and administrative | 6,567 | $ 10,799 | ||||
ATM Program [Member] | ||||||
Common stock, reserved for future issuance, value | $ 64,900 | |||||
Common Stock Value Authorized | $ 100,000 | |||||
Minimum [Member] | ||||||
Closing bid price | $ / shares | $ 1 | $ 1 | ||||
Investment tax credit, percentage | 30% | |||||
Intangible assets, estimated useful life | 2 years 6 months | |||||
Product warranty life | 5 years | |||||
Subscription revenue contract terms | 1 year | |||||
Maximum [Member] | ||||||
Investment tax credit, percentage | 50% | |||||
Intangible assets, estimated useful life | 3 years | |||||
Product warranty life | 10 years | |||||
Subscription revenue contract terms | 2 years | |||||
Maximum [Member] | Alpha Steel | ||||||
Additional capital contribution | $ 1,600 |
Equity method investment - Addi
Equity method investment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jul. 28, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Feb. 09, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Loss from unconsolidated subsidiary | $ (265) | $ 0 | |||
Placing Purchase Orders | Pursuant to the Supply Agreement, we have committed to placing a minimum level of purchase orders for torque tubes with Alpha Steel during the year ended December 31, 2024, with such volume commitments increasing in each of the next two annual periods. | ||||
Net Profit Attributable | $ 4,000 | ||||
Purchase Obligation Percentage | 6% | ||||
Taihua New Energy [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 51% | ||||
DAYV LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Ownership percentage | 4% | ||||
Alpha Steel | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Additional Interest Rate Above Prime | 2% | ||||
Ownership percentage | 45% | ||||
Capital Contribution | $ 900 | ||||
Additional capital contributions | $ 1,000 | ||||
Potential Future Capital Contributions | 1,600 | ||||
Loss from unconsolidated subsidiary | 300 | ||||
Liability For Unpaid Claims And Claims Adjustment Expense | $ 5,200 |
ATM Program - Additional Inform
ATM Program - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Sep. 14, 2022 | |
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of common stock, value | $ 6,292 | ||
Proceeds from common stock | $ 0 | $ 5,450 | |
Common stock, reserved for future issuance, value | 64,900 | ||
ATM Program [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, value authorized | $ 100,000 | ||
Issuance of common stock (in shares) | 2,683,000 | ||
Issuance of common stock, value | $ 6,500 | ||
Proceeds from common stock | 6,300 | ||
Sale of common stock | $ 800 | ||
Common stock, reserved for future issuance, value | $ 64,900 |
Accounts receivable, net - Sche
Accounts receivable, net - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||||
Trade receivables | $ 49,474 | $ 46,152 | ||
Related party receivables | 1,672 | 868 | ||
Revenue recognized in excess of billings | 24,456 | 26,813 | ||
Other receivables | 4 | 3 | ||
Total | 75,606 | 73,836 | ||
Allowance for credit losses | (9,227) | (8,557) | $ (1,184) | $ (1,184) |
Accounts receivable, net | $ 66,379 | $ 65,279 |
Accounts Receivable Allowance F
Accounts Receivable Allowance For Credit Loss - Details (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Balance at beginning of period | $ 8,557 | $ 1,184 |
Additions charged to earnings during the period | 670 | 0 |
Balance at end of period | $ 9,227 | $ 1,184 |
Accounts receivable, net - Addi
Accounts receivable, net - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Retainage provisions included in receivables | $ 0.6 | $ 0.9 |
Inventories, net - Schedule of
Inventories, net - Schedule of inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 4,362 | $ 4,246 |
Allowance for slow-moving and obsolete inventory | (518) | (341) |
Total | $ 3,844 | $ 3,905 |
Prepaid and other current ass_3
Prepaid and other current assets - Schedule of Prepaid and other current assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Vendor deposits | $ 5,894 | $ 5,667 |
Vendor deposits with related party | 1,504 | 520 |
Prepaid expense | 710 | 1,251 |
Prepaid taxes | 471 | 447 |
Deferred cost of revenue | 611 | 666 |
Surety collateral | 55 | 0 |
Other current assets | 4,824 | 5,538 |
Total | $ 14,069 | $ 14,089 |
Prepaid and other current ass_4
Prepaid and other current assets (Additional Information) (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Prepaid Expense and Other Assets, Current [Abstract] | |
Short-term Interest Bearing Loan & Customer dvance | $ 2.5 |
Leases - Summary of Lease Expen
Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 309 | $ 229 |
Short-term lease cost | 93 | 92 |
Total lease cost | 402 | 321 |
Cost of revenue [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 236 | 215 |
Research and development [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 14 | 15 |
Selling and marketing [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | 48 | 15 |
General and administrative [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Total lease cost | $ 104 | $ 76 |
Leases - Summary of Future Rema
Leases - Summary of Future Remaining Lease Payments Obligations (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | ||
Remainder of 2024 | $ 607 | |
2025 | 755 | |
2026 | 219 | |
2027 | 192 | |
2028 | 16 | |
Total lease payments | 1,789 | |
Less imputed interest | (113) | |
Current portion of operating lease liability | 742 | $ 740 |
Operating lease liability, net of current portion | 934 | $ 1,124 |
Present value of operating lease liabilities | $ 1,676 |
Property and equipment, net - S
Property and equipment, net - Schedule of property and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,874 | $ 3,433 |
Accumulated depreciation | (1,880) | (1,610) |
Property and equipment, net | 1,994 | 1,823 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 162 | 157 |
Field Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,062 | 1,062 |
Information Technology Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 508 | 466 |
Tooling [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,381 | 1,014 |
Capitalized Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 761 | $ 734 |
Property and equipment, net - A
Property and equipment, net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 0.3 | $ 0.2 |
Intangible assets, net and go_3
Intangible assets, net and goodwill - Summary of intangible assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 2,529 | $ 2,555 |
Accumulated amortization | (2,130) | (2,013) |
Intangible assets, net | $ 399 | 542 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 2 years 6 months | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 3 years | |
Developed Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 2,529 | $ 2,555 |
Developed Technology [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 2 years 6 months | |
Developed Technology [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 3 years |
Intangible assets, net and go_4
Intangible assets, net and goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Indefinite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 0.1 | $ 0.1 |
Intangible assets, net and go_5
Intangible assets, net and goodwill - Summary of goodwill activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance at beginning of period | $ 7,353 | $ 7,538 |
Translation | (140) | (185) |
Balance at end of period | $ 7,213 | $ 7,353 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Apr. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Restricted cash | $ 1,896 | $ 0 | ||
Credit Facility Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Liquidity ratio amount, minimum limit | 125,000 | |||
Interest expense | 300 | $ 300 | ||
Barclays Bank PLC [Member] | Credit Facility Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Available borrowing capacity under the Revolving Credit Facility | $ 98,100 | |||
Commitment fees rate | 0.50% | |||
Barclays Bank PLC [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Restricted cash | $ 1,900 | |||
Barclays Bank PLC [Member] | Letter of Credit [Member] | Credit Facility Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate commitments | $ 100,000 | |||
Credit Facility amount | $ 1,900 | |||
Commitment fees rate | 3.25% |
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, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Accrued Expenses and Other Current Liabilities Abstract | |||
Accrued cost of revenue | $ 22,423 | $ 26,773 | |
Related party accrued cost of revenue | 1,370 | 1,451 | |
Accrued compensation | 3,650 | 3,858 | |
Other accrued expenses | 2,247 | 2,766 | |
Total accrued expenses | 29,690 | 34,848 | |
Warranty reserves | 6,992 | 7,279 | $ 8,085 |
Current portion of operating lease liability | $ 742 | $ 740 | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total other current liabilities | Total other current liabilities | |
Non-federal tax obligations | $ 125 | $ 119 | |
Total other current liabilities | $ 7,859 | $ 8,138 |
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, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accrued Expenses and Other Current Liabilities Abstract | |||
Balance at beginning of period | $ 11,002 | $ 12,426 | |
Warranties issued and remediation added during the period | 838 | 1,543 | |
Settlements made during the period | (849) | (1,103) | |
Changes in liability for pre-existing warranties | (519) | (309) | |
Balance at end 's period | 10,472 | 12,557 | |
Accrued warranty balance reported in: | |||
Other current liabilities | 6,992 | 8,085 | $ 7,279 |
Other non-current liabilities | 3,480 | 4,472 | |
Balance at end of period | $ 10,472 | $ 12,557 | $ 11,002 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Income Tax Contingency [Line Items] | |||
Income tax expense (benefit) | $ (11) | $ 131 | |
Statutory rate | 21% | ||
Income tax interest and penalties accrued | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Product Warranty Liability [Line Items] | |
Description of tariffs classification | In particular, CBP accepted our position that the Section 301 tariffs of 25% or 7.5% of the value of the merchandise, depending on tariff classification, as well as the antidumping and countervailing duties, previously assessed under the Original 939 Assessment are not applicable as they are only applicable to articles that originate in China |
Description of revised tariffs classification | In particular, the Section 301 tariffs of 25% or 7.5% of the value of the merchandise, depending on tariff classification, as well as the antidumping and countervailing duties, are not applicable under the 625 Assessment for the same reason stated above with respect to the Revised 939 Assessment, which has been accepted by CBP |
Maximum [Member] | |
Product Warranty Liability [Line Items] | |
Tariffs on merchandise, percent | 25% |
Minimum [Member] | |
Product Warranty Liability [Line Items] | |
Tariffs on merchandise, percent | 7.50% |
939 Assessment [Member] | |
Product Warranty Liability [Line Items] | |
Cost of assessment | $ 2,010 |
CBP Assessments [Member] | |
Product Warranty Liability [Line Items] | |
Cost of assessment | $ 2,840 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock compensation expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 1,639 | $ 4,890 |
Cost of revenue [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 216 | 816 |
Research and development [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 81 | 249 |
Selling and marketing [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 44 | 384 |
General and administrative [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 1,298 | $ 3,441 |
Related party transactions - Ad
Related party transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Related Party Transaction [Line Items] | ||||
Related party receivables | $ 1,672 | $ 868 | ||
Related party accrued cost of revenue | 1,370 | 1,451 | ||
Accounts payable | 12,059 | 7,979 | ||
Alpha Steel [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party receivables | 1,700 | 900 | ||
Related party accrued cost of revenue | 1,400 | 1,500 | ||
Vendor Deposits | 1,600 | |||
Total received Invoices from Alpha Steel | 1,600 | |||
Accounts payable | $ 400 | $ 0 | ||
South Lake One LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Outstanding capital stock held | 5% | |||
Related Party [Member] | Fernweh Engaged Operator Company LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
General and administrative expense | $ 2,300 | |||
Cash payments | $ 800 |
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, 2024 | Mar. 31, 2023 | |
Earnings Per Share [Abstract] | ||
Net loss | $ (8,771) | $ (11,762) |
Basic weighted-average number of common shares outstanding | 125,569,375 | 106,791,198 |
Diluted weighted-average number of common shares outstanding | 125,569,375 | 106,791,198 |
Basic loss per share | $ (0.07) | $ (0.11) |
Diluted loss per share | $ (0.07) | $ (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, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 14,605,901 | 13,157,574 |
Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potential common shares excluded from diluted net loss per share | 2,427,526 | 6,544,725 |
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 | 12,178,375 | 6,612,849 |
Subsequent Events (Additional I
Subsequent Events (Additional Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Apr. 03, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Allowance for credit losses | $ 9,227 | $ 8,557 | $ 1,184 | $ 1,184 | |
Major Customers [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Trade Accounts Receivable Balance From Major Customer | 30,800 | ||||
Provision For Credit Losses | 700 | ||||
Allowance for credit losses | $ 9,000 | ||||
Subsequent Event | Major Customers [Member] | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||||
Fair value of retained equipment | $ 13,200 | ||||
Cash payment | $ 9,000 |