Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38495 | |
Entity Registrant Name | Nikola Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-4151153 | |
Entity Address, Address Line One | 4141 E Broadway Road | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85040 | |
City Area Code | 480 | |
Local Phone Number | 666-1038 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | NKLA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 1,016,409,878 | |
Entity Central Index Key | 0001731289 | |
Document Fiscal Year Focus | 2023 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 362,850 | $ 225,850 |
Restricted cash and cash equivalents | 1,224 | 10,600 |
Accounts receivable, net | 10,707 | 31,638 |
Inventory | 56,958 | 111,870 |
Prepaid expenses and other current assets | 38,978 | 27,943 |
Assets subject to assignment for the benefit of creditors, current portion | 0 | 29,025 |
Total current assets | 470,717 | 436,926 |
Restricted cash and cash equivalents | 28,026 | 77,459 |
Long-term deposits | 16,681 | 34,279 |
Property, plant and equipment, net | 469,851 | 417,785 |
Intangible assets, net | 87,712 | 92,473 |
Investment in affiliates | 58,193 | 62,816 |
Goodwill | 5,238 | 6,688 |
Other assets | 11,868 | 8,107 |
Assets subject to assignment for the benefit of creditors | 0 | 100,125 |
Total assets | 1,148,286 | 1,236,658 |
Current liabilities | ||
Accounts payable | 48,809 | 93,242 |
Accrued expenses and other current liabilities | 205,155 | 179,571 |
Debt and finance lease liabilities, current (including $32.4 million and $50.0 million measured at fair value, respectively) | 39,177 | 61,675 |
Liabilities subject to assignment for the benefit of creditors, current portion | 0 | 49,102 |
Total current liabilities | 293,141 | 383,590 |
Long-term debt and finance lease liabilities, net of current portion | 232,371 | 290,128 |
Operating lease liabilities | 5,023 | 6,091 |
Other long-term liabilities | 14,168 | 6,684 |
Deferred tax liabilities, net | 15 | 15 |
Liabilities subject to assignment for the benefit of creditors | 0 | 23,671 |
Total liabilities | 544,718 | 710,179 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity | ||
Preferred stock, $0.0001 par value, 150,000,000 shares authorized, no shares issued and outstanding as of September 30, 2023 and December 31, 2022 | 0 | 0 |
Common stock, $0.0001 par value, 1,600,000,000 and 800,000,000 shares authorized as of September 30, 2023 and December 31, 2022, respectively, 992,033,979 and 512,935,485 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 99 | 51 |
Additional paid-in capital | 3,520,890 | 2,562,855 |
Accumulated deficit | (2,917,473) | (2,034,850) |
Accumulated other comprehensive loss | 52 | (1,577) |
Total stockholders' equity | 603,568 | 526,479 |
Total liabilities and stockholders' equity | $ 1,148,286 | $ 1,236,658 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current liabilities | ||
Debt and finance lease liabilities, current measured at fair value | $ 32.4 | $ 50 |
Stockholders' equity | ||
Preferred stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 1,600,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 992,033,979 | 512,935,485 |
Common stock, shares outstanding (in shares) | 992,033,979 | 512,935,485 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Revenue | $ (1,732,000) | $ 24,241,000 | $ 24,307,000 | $ 44,262,000 |
Cost of revenues: | ||||
Cost of revenues | 123,771,000 | 54,410,000 | 200,138,000 | 103,257,000 |
Gross loss | (125,503,000) | (30,169,000) | (175,831,000) | (58,995,000) |
Operating expenses: | ||||
Research and development | 41,966,000 | 66,683,000 | 168,286,000 | 204,346,000 |
Selling, general, and administrative | 57,982,000 | 132,865,000 | 159,443,000 | 289,916,000 |
Loss on supplier deposits | 716,000 | 0 | 18,433,000 | 0 |
Total operating expenses | 100,664,000 | 199,548,000 | 346,162,000 | 494,262,000 |
Loss from operations | (226,167,000) | (229,717,000) | (521,993,000) | (553,257,000) |
Other income (expense): | ||||
Interest expense, net | (52,680,000) | (7,735,000) | (71,262,000) | (10,754,000) |
Revaluation of warrant liability | 0 | 586,000 | 315,000 | 3,493,000 |
Gain on divestiture of affiliate | 0 | 0 | 70,849,000 | 0 |
Loss on debt extinguishment | 0 | 0 | (20,362,000) | 0 |
Other income (expense), net | (146,654,000) | 2,617,000 | (152,284,000) | 4,423,000 |
Loss before income taxes and equity in net loss of affiliates | (425,501,000) | (234,249,000) | (694,737,000) | (556,095,000) |
Income tax expense | 1,000 | 1,000 | 1,000 | 3,000 |
Loss before equity in net loss of affiliates | (425,502,000) | (234,250,000) | (694,738,000) | (556,098,000) |
Equity in net loss of affiliates | (262,000) | (1,984,000) | (16,287,000) | (6,074,000) |
Net loss from continuing operations | (425,764,000) | (236,234,000) | (711,025,000) | (562,172,000) |
Discontinued operations: | ||||
Loss from discontinued operations | 0 | 0 | (76,726,000) | 0 |
Loss from deconsolidation of discontinued operations | 0 | 0 | (24,935,000) | 0 |
Net loss from discontinued operations | 0 | 0 | (101,661,000) | 0 |
Net loss | $ (425,764,000) | $ (236,234,000) | $ (812,686,000) | $ (562,172,000) |
Basic and diluted net loss per share: | ||||
Net loss from continuing operations, basic (in dollars per share) | $ (0.50) | $ (0.54) | $ (1.01) | $ (1.32) |
Net loss from continuing operations, diluted (in dollars per share) | (0.50) | (0.54) | (1.01) | (1.32) |
Net loss from discontinued operations, basic (in dollars per share) | 0 | 0 | (0.14) | 0 |
Net loss from discontinued operations, diluted (in dollars per share) | 0 | 0 | (0.14) | 0 |
Net loss, basic (in dollars per share) | (0.50) | (0.54) | (1.15) | (1.32) |
Net loss, diluted (in dollars per share) | $ (0.50) | $ (0.54) | $ (1.15) | $ (1.32) |
Weighted average shares outstanding, basic (in shares) | 857,213,992 | 438,416,393 | 706,325,212 | 426,382,736 |
Weighted average shares outstanding, diluted (in shares) | 857,213,992 | 438,416,393 | 706,325,212 | 426,382,736 |
Truck sales | ||||
Revenues: | ||||
Revenue | $ (2,368,000) | $ 23,853,000 | $ 19,693,000 | $ 41,236,000 |
Cost of revenues: | ||||
Cost of revenues | 122,679,000 | 54,080,000 | 195,902,000 | 100,861,000 |
Service and other | ||||
Revenues: | ||||
Revenue | 636,000 | 388,000 | 4,614,000 | 3,026,000 |
Cost of revenues: | ||||
Cost of revenues | $ 1,092,000 | $ 330,000 | $ 4,236,000 | $ 2,396,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (425,764) | $ (236,234) | $ (812,686) | $ (562,172) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment, net of tax | 145 | (1,237) | 1,629 | (2,226) |
Comprehensive loss | $ (425,619) | $ (237,471) | $ (811,057) | $ (564,398) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Senior Convertible Notes | April 2023 Toggle Convertible Notes | Common stock issued under Tumim Purchase Agreements | Common stock issued under Equity Distribution Agreement, net | Common stock issued in public offering | Common stock issued in registered direct offering | Common Stock | Common Stock Senior Convertible Notes | Common Stock April 2023 Toggle Convertible Notes | Common Stock Common stock issued under Tumim Purchase Agreements | Common Stock Common stock issued under Equity Distribution Agreement, net | Common Stock Common stock issued in public offering | Common Stock Common stock issued in registered direct offering | Additional Paid-in Capital | Additional Paid-in Capital Senior Convertible Notes | Additional Paid-in Capital April 2023 Toggle Convertible Notes | Additional Paid-in Capital Common stock issued under Tumim Purchase Agreements | Additional Paid-in Capital Common stock issued under Equity Distribution Agreement, net | Additional Paid-in Capital Common stock issued in public offering | Additional Paid-in Capital Common stock issued in registered direct offering | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Balance at beginning of period (in shares) at Dec. 31, 2021 | 413,340,550 | ||||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2021 | $ 693,572 | $ 41 | $ 1,944,341 | $ (1,250,612) | $ (198) | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Exercise of stock options (in shares) | 1,581,791 | ||||||||||||||||||||||
Exercise of stock options | 1,970 | $ 1 | 1,969 | ||||||||||||||||||||
Issuance of shares for RSU awards (in shares) | 4,025,887 | ||||||||||||||||||||||
Common stock issued (in shares) | 17,248,244 | 19,009,227 | |||||||||||||||||||||
Common stock issued | $ 123,672 | $ 97,999 | $ 2 | $ 2 | $ 123,670 | $ 97,997 | |||||||||||||||||
Stock-based compensation | 211,214 | 211,214 | |||||||||||||||||||||
Net loss | (562,172) | (562,172) | |||||||||||||||||||||
Other comprehensive loss | (2,226) | (2,226) | |||||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2022 | 455,205,699 | ||||||||||||||||||||||
Balance at end of period at Sep. 30, 2022 | 564,029 | $ 46 | 2,379,191 | (1,812,784) | (2,424) | ||||||||||||||||||
Balance at beginning of period (in shares) at Jun. 30, 2022 | 433,475,084 | ||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2022 | 599,251 | $ 43 | 2,176,945 | (1,576,550) | (1,187) | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Exercise of stock options (in shares) | 1,296,206 | ||||||||||||||||||||||
Exercise of stock options | 1,405 | $ 1 | 1,404 | ||||||||||||||||||||
Issuance of shares for RSU awards (in shares) | 1,425,182 | ||||||||||||||||||||||
Common stock issued (in shares) | 19,009,227 | ||||||||||||||||||||||
Common stock issued | 97,999 | $ 2 | 97,997 | ||||||||||||||||||||
Stock-based compensation | 102,845 | 102,845 | |||||||||||||||||||||
Net loss | (236,234) | (236,234) | |||||||||||||||||||||
Other comprehensive loss | (1,237) | (1,237) | |||||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2022 | 455,205,699 | ||||||||||||||||||||||
Balance at end of period at Sep. 30, 2022 | $ 564,029 | $ 46 | 2,379,191 | (1,812,784) | (2,424) | ||||||||||||||||||
Balance at beginning of period (in shares) at Dec. 31, 2022 | 512,935,485 | 512,935,485 | |||||||||||||||||||||
Balance at beginning of period at Dec. 31, 2022 | $ 526,479 | $ 51 | 2,562,855 | (2,034,850) | (1,577) | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Exercise of stock options (in shares) | 6,723,629 | 6,723,629 | |||||||||||||||||||||
Exercise of stock options | $ 7,155 | $ 1 | 7,154 | ||||||||||||||||||||
Issuance of shares for RSU awards (in shares) | 10,915,751 | ||||||||||||||||||||||
Common stock issued (in shares) | 32,211,777 | 66,690,443 | 29,910,715 | 59,374,999 | |||||||||||||||||||
Common stock issued | $ 67,587 | 115,593 | $ 32,244 | $ 63,156 | $ 3 | $ 7 | $ 3 | $ 6 | $ 67,584 | 115,586 | $ 32,241 | $ 63,150 | |||||||||||
Issuance of common stock for conversion of notes (in shares) | 221,412,391 | 72,458,789 | |||||||||||||||||||||
Issuance of common stock for conversion of notes | $ 246,431 | $ 115,152 | $ 23 | $ 7 | $ 246,408 | $ 115,145 | |||||||||||||||||
Common stock received for contingent stock consideration (in shares) | (20,600,000) | ||||||||||||||||||||||
Common stock received for contingent stock consideration | (69,939) | $ (2) | (69,937) | ||||||||||||||||||||
Reclassification of conversion features embedded in Toggle Convertible Notes to equity | 241,851 | 241,851 | |||||||||||||||||||||
Reclassification of share-based payment awards from liability to equity | 20,992 | 20,992 | |||||||||||||||||||||
Reclassification of share-based payment awards from equity to liability | (10,401) | (10,401) | |||||||||||||||||||||
Stock-based compensation | 58,325 | 58,325 | |||||||||||||||||||||
Net loss | (812,686) | (812,686) | |||||||||||||||||||||
Other comprehensive loss | $ 1,629 | 1,629 | |||||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2023 | 992,033,979 | 992,033,979 | |||||||||||||||||||||
Balance at end of period at Sep. 30, 2023 | $ 603,568 | $ 99 | 3,520,890 | (2,917,473) | 52 | ||||||||||||||||||
Balance at beginning of period (in shares) at Jun. 30, 2023 | 769,300,317 | ||||||||||||||||||||||
Balance at beginning of period at Jun. 30, 2023 | 522,716 | $ 77 | 2,944,504 | (2,421,772) | (93) | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||
Exercise of stock options (in shares) | 5,967,257 | ||||||||||||||||||||||
Exercise of stock options | 6,353 | $ 1 | 6,352 | ||||||||||||||||||||
Issuance of shares for RSU awards (in shares) | 3,143,110 | ||||||||||||||||||||||
Common stock issued (in shares) | 27,662,880 | ||||||||||||||||||||||
Common stock issued | $ 53,139 | $ 3 | $ 53,136 | ||||||||||||||||||||
Issuance of common stock for conversion of notes (in shares) | 134,101,626 | 72,458,789 | |||||||||||||||||||||
Issuance of common stock for conversion of notes | $ 139,250 | $ 115,152 | $ 13 | $ 7 | $ 139,237 | $ 115,145 | |||||||||||||||||
Common stock received for contingent stock consideration (in shares) | (20,600,000) | ||||||||||||||||||||||
Common stock received for contingent stock consideration | (69,939) | $ (2) | (69,937) | ||||||||||||||||||||
Reclassification of conversion features embedded in Toggle Convertible Notes to equity | 241,851 | 241,851 | |||||||||||||||||||||
Reclassification of share-based payment awards from liability to equity | 20,992 | 20,992 | |||||||||||||||||||||
Reclassification of share-based payment awards from equity to liability | (8,395) | (8,395) | |||||||||||||||||||||
Stock-based compensation | 8,068 | 8,068 | |||||||||||||||||||||
Net loss | (425,764) | (425,764) | |||||||||||||||||||||
Other comprehensive loss | $ 145 | 145 | |||||||||||||||||||||
Balance at end of period (in shares) at Sep. 30, 2023 | 992,033,979 | 992,033,979 | |||||||||||||||||||||
Balance at end of period at Sep. 30, 2023 | $ 603,568 | $ 99 | $ 3,520,890 | $ (2,917,473) | $ 52 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (812,686) | $ (562,172) |
Less: Loss from discontinued operations | (101,661) | 0 |
Loss from continuing operations | (711,025) | (562,172) |
Adjustments to reconcile net loss from continuing operations to net cash used in operating activities: | ||
Depreciation and amortization | 28,758 | 16,472 |
Stock-based compensation | 68,916 | 211,214 |
Equity in net loss of affiliates | 16,287 | 6,074 |
Revaluation of financial instruments | 195,132 | (94) |
Revaluation of contingent stock consideration | (43,981) | 0 |
Inventory write-downs | 64,500 | 16,617 |
Non-cash interest expense | 72,846 | 8,890 |
Loss on supplier deposits | 18,433 | 0 |
Gain on divestiture of affiliate | (70,849) | 0 |
Loss on debt extinguishment | 20,362 | 0 |
Other non-cash activity | 3,888 | 476 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 20,932 | (37,662) |
Inventory | (9,983) | (97,952) |
Prepaid expenses and other current assets | (48,332) | (10,371) |
Other assets | (2,384) | (912) |
Accounts payable, accrued expenses and other current liabilities | (1,672) | 25,128 |
Long-term deposits | (1,377) | (8,356) |
Operating lease liabilities | (1,191) | (416) |
Other long-term liabilities | 2,316 | 1,605 |
Net cash used in operating activities | (378,424) | (431,459) |
Cash flows from investing activities | ||
Purchases and deposits of property, plant and equipment | (108,409) | (118,436) |
Divestiture of affiliate | 35,000 | 0 |
Proceeds from the sale of assets | 20,742 | 18 |
Payments to Assignee | (2,725) | 0 |
Investments in affiliates | (250) | (23,027) |
Issuance of senior secured note receivable and prepaid acquisition-related consideration | 0 | (21,910) |
Settlement of Second Price Differential | 0 | (6,588) |
Net cash used in investing activities | (55,642) | (169,943) |
Cash flows from financing activities | ||
Proceeds from the exercise of stock options | 7,393 | 1,645 |
Proceeds from issuance of common stock under Equity Distribution Agreement, net of commissions paid | 115,027 | 100,512 |
Proceeds from issuance of convertible notes, net of discount and issuance costs | 217,075 | 183,504 |
Proceeds from issuance of Collateralized Promissory Notes | 0 | 54,000 |
Proceeds from issuance of financing obligation, net of issuance costs | 53,548 | 44,007 |
Proceeds from insurance premium financing | 5,223 | 6,637 |
Repayment of debt and promissory notes | (45,287) | (28,125) |
Payments on insurance premium financing | (3,550) | (2,635) |
Payments on finance lease liabilities and financing obligation | (459) | (266) |
Net cash provided by financing activities | 512,257 | 482,951 |
Net increase (decrease) in cash and cash equivalents, including restricted cash and cash equivalents | 78,191 | (118,451) |
Cash and cash equivalents, including restricted cash and cash equivalents, beginning of period | 313,909 | 522,241 |
Cash and cash equivalents, including restricted cash and cash equivalents, end of period | 392,100 | 403,790 |
Cash flows from discontinued operations: | ||
Operating activities | (4,964) | 0 |
Investing activities | (1,804) | 0 |
Financing activities | (572) | 0 |
Net cash used in discontinued operations | (7,340) | 0 |
Supplementary cash flow disclosures: | ||
Cash paid for interest | 5,561 | 2,643 |
Cash interest received | 7,153 | 257 |
Supplementary disclosures for noncash investing and financing activities: | ||
Reclassification of conversion features embedded in Toggle Convertible Notes to equity | 241,851 | 0 |
Contingent stock consideration for divestiture of affiliate | 25,956 | 0 |
Embedded derivative liability bifurcated from April 2023 Toggle Convertible Notes | 21,180 | 0 |
Reclassification from liability to equity for certain share-based awards | 20,992 | 0 |
PIK interest | 16,263 | 7,284 |
Purchases of property, plant and equipment included in liabilities | 13,551 | 28,912 |
Leased assets obtained in exchange for new finance lease liabilities | 10,982 | 698 |
Reclassification from equity to liability for certain share-based awards | 10,401 | 0 |
Accrued commissions under Equity Distribution Agreement | 1,114 | 2,513 |
Accrued issuance costs | 300 | 0 |
Embedded derivative asset bifurcated from June 2022 Toggle Convertible Notes | 0 | 1,500 |
Stock option proceeds receivable | 0 | 325 |
Accrued debt issuance costs | 0 | 311 |
Accrued deferred issuance costs | 0 | 0 |
Senior Convertible Notes | ||
Supplementary disclosures for noncash investing and financing activities: | ||
Conversion of convertible note | 246,431 | 0 |
April 2023 Toggle Convertible Notes | ||
Supplementary disclosures for noncash investing and financing activities: | ||
Conversion of convertible note | 115,152 | 0 |
Private Placement | ||
Cash flows from financing activities | ||
Proceeds from issuance of private placement | 67,587 | 123,672 |
Common stock issued in registered direct offering | ||
Cash flows from financing activities | ||
Proceeds from issuance of private placement | 63,456 | 0 |
Common stock issued in public offering | ||
Cash flows from financing activities | ||
Proceeds from public offering, net of underwriter's discount | $ 32,244 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION (a) Overview Nikola Corporation (‘‘Nikola’’ or the ‘‘Company’’) is a designer and manufacturer of heavy-duty commercial battery-electric and hydrogen-electric vehicles and energy infrastructure solutions. (b) Unaudited Consolidated Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited financial information reflects, in the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as amended. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated. Certain prior period balances have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes. A ll dollar amounts are in thousands, unless otherwise noted. Prior to the start of production for the Tre BEV trucks late in the first quarter of 2022, pre-production activities, including manufacturing readiness, process validation, prototype builds, freight, inventory write-downs, and operations of the Company's manufacturing facility in Coolidge, Arizona were recorded as research and development activities on the Company's consolidated statements of operations. Commensurate with the start of production, manufacturing costs, including labor and overhead, as well as inventory-related expenses related to the Tre BEV trucks, and related facility costs, are recorded in cost of revenues beginning in the second quarter of 2022. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. On October 14, 2022, the Company completed the acquisition of all of the outstanding common stock of Romeo Power, Inc. (“Romeo”) (the "Romeo Acquisition") for a total purchase price of $78.6 million. See Note 3, Business Combination . On June 30, 2023, pursuant to a general assignment (the “Assignment”), the Company transferred ownership of all of Romeo’s right, title and interest in and to all of its tangible and intangible assets, subject to certain agreed upon exclusions (collectively, the “Assets”) to SG Service Co., LLC, in its sole and limited capacity as Assignee for the Benefit of Creditors of Romeo (“Assignee”), and also designated Assignee to act as the assignee for the benefit of creditors of Romeo, such that Assignee succeeded to all of Romeo’s right, title and interest in and to the Assets. The results of operations of Romeo are reported as discontinued operations for the three and nine months ended September 30, 2023. See Note 10, Deconsolidation of Subsidiary , for additional information. All references made to financial data in this Quarterly Report on Form 10-Q are to the Company's continuing operations, unless otherwise specifically noted. (c) Funding Risks and Going Concern In accordance with Accounting Standards Codification (" ASC") 205-40, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASC 205-40”) the Company has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued. As an early stage growth company, the Company's ability to access capital is critical. Until the Company can generate sufficient revenue to cover its operating expenses, working capital and capital expenditures, the Company will need to raise additional capital. Additional stock financing may not be available on favorable terms, or at all, and would be dilutive to current stockholders. Debt financing, if available, may involve restrictive covenants and dilutive financing instruments. The Company has secured and intends to employ various strategies to obtain the required funding for future operations such as continuing to access capital through the amended and restated equity distribution agreement with Citigroup Global Markets Inc. ("Citi"), as sales agent, see Note 8, Capital Structure . However, the ability to access the amended and restated equity distribution agreement is dependent on common stock trading volumes and the market price of the Company’s common stock, which cannot be assured, and as a result cannot be included as sources of liquidity for the Company’s ASC 205-40 analysis. If capital is not available to the Company when, and in the amounts needed, the Company would be required to delay, scale back, or abandon some or all of its development programs and operations, which could materially harm the Company’s business, financial condition and results of operations. The result of the Company’s ASC 205-40 analysis, due to uncertainties discussed above, is that there is substantial doubt about the Company’s ability to continue as a going concern through the next twelve months from the date of issuance of these consolidated financial statements. These financial statements have been prepared by management in accordance with GAAP and this basis assumes that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. These financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Cash, Cash Equivalents and Restricted Cash and Cash Equivalents The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Additionally, the Company considers investments in money market funds to be cash equivalents. As of September 30, 2023 and December 31, 2022, the Company had $362.9 million and $225.9 million of cash and cash equivalents, respectively. Cash equivalents included $14.3 million and zero of highly liquid investments as of September 30, 2023 and December 31, 2022, respectively. As of September 30, 2023 and December 31, 2022, the Company had $29.3 million and $88.1 million, respectively, in current and non-current restricted cash. Restricted cash represents cash that is restricted as to withdrawal or usage and primarily consists of securitization of the Company's letters of credit, leases, and debt. See Note 7, Debt and Finance Lease Liabilities, for additional details. The reconciliation of cash and cash equivalents and restricted cash and cash equivalents to amounts presented in the consolidated statements of cash flows are as follows: As of September 30, 2023 December 31, 2022 September 30, 2022 Cash and cash equivalents $ 362,850 $ 225,850 $ 315,731 Restricted cash and cash equivalents – current 1,224 10,600 600 Restricted cash and cash equivalents – non-current 28,026 77,459 87,459 Cash, cash equivalents and restricted cash and cash equivalents $ 392,100 $ 313,909 $ 403,790 (b) Fair Value of Financial Instruments The carrying value and fair value of the Company’s financial instruments are as follows: As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents – money market $ 14,339 $ — $ — $ 14,339 Derivative asset — — 124 124 Liabilities Warrant liability $ — $ — $ 65 $ 65 Senior Convertible Notes — — 32,381 32,381 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Derivative asset $ — $ — $ 170 $ 170 Liabilities Warrant liability $ — $ — $ 380 $ 380 Senior Convertible Notes — — 50,000 50,000 Put Premium Derivative Asset In June 2022, the Company completed a private placement of $200.0 million aggregate principal amount of unsecured 8.00% / 11.00% convertible senior paid in kind ("PIK") toggle notes (the “June 2022 Toggle Convertible Notes”). In conjunction with the issuance of the June 2022 Toggle Convertible Notes, the Company entered into a premium letter agreement (the "Put Premium") with the purchasers (the "Note Purchasers") of the June 2022 Toggle Convertible Notes which requires the Note Purchasers to pay $9.0 million to the Company if during the period through the date that is thirty months after the closing date of the private placement of June 2022 Toggle Convertible Notes, the last reported sale price of the Company's common stock has been at least $20.00 for at least 20 trading days during any consecutive 40 trading day period. The Put Premium was determined to be an embedded derivative asset and met the criteria to be separated from the host contract and carried at fair value. The derivative is measured both initially and in subsequent periods at fair value, with changes in fair value recognized i n other income (expense), net on the consolidated statements of operations. The fair value of the derivative asset is included in other assets on the consolidated balance sheets. The change in fair value of the derivative asset was as follows: Three months Ended Nine Months Ended September 30, 2022 September 30, 2022 Estimated fair value - beginning of period $ 800 $ — Recognition of derivative asset — 1,500 Change in fair value (300) (1,000) Estimated fair value - end of period $ 500 $ 500 The fair value of the derivative asset was immaterial as of September 30, 2023 and December 31, 2022. Derivative Liabilities Embedded conversion features derivative liability On April 11, 2023, the Company completed an exchange (the "Exchange") of $100.0 million aggregate principal amount of the Company's existing June 2022 Toggle Convertible Notes for the issuance of $100.0 million aggregate principal amount of 8.00% / 11.00% Series B convertible senior PIK toggle notes (the "April 2023 Toggle Convertible Notes"). The April 2023 Toggle Convertible Notes were issued pursuant to an indenture dated as of April 11, 2023 (the "April 2023 Toggle Convertible Notes Indenture"). Additionally, in June 2023, the Company completed a private placement of $11.0 million aggregate principal amount of unsecured 8.00% / 8.00% Series C convertible senior PIK toggle notes (the "June 2023 Toggle Convertible Notes"). The June 2023 Toggle Convertible Notes were issued pursuant to an indenture dated as of June 23, 2023 (the "June 2023 Toggle Convertible Notes Indenture"). The April 2023 Toggle Convertible Notes Indenture and June 2023 Toggle Convertible Notes Indenture, among other things, limits conversion of the notes in certain instances until the earlier to occur of (x) an increase in the number of authorized shares in an amount sufficient to, among other things, allow for the issuance of common stock underlying the notes and (y) October 11, 2023, and provides that the Company shall elect to settle conversions of the notes in cash until such increase in the number of authorized shares has occurred, and the Company obtains the stockholder approval contemplated by Rule 5635 of the Nasdaq listing rules ("Nasdaq Rule"). The conversion features embedded to the April 2023 Toggle Convertible Notes were bifurcated and recognized separately at fair value due to the temporary requirement to settle conversions in cash, in certain instances, until stockholder approval as contemplated by Nasdaq Rule 5635 is obtained to increase the number of authorized shares. Upon the Exchange, the Company recognized $21.2 million for the embedded conversion features as a derivative liability within accrued expenses and other current liabilities on the consolidated balance sheets. During the third quarter of 2023, and commensurate with the approval to increase the number of authorized shares on August 3, 2023, the Company reassessed the conversion features bifurcated from the April 2023 Toggle Convertible Notes and June 2023 Toggle Convertible Notes . As of August 3, 2023, the conversion features met all equity classification criteria, and as a result, the derivative liabilities were remeasured as of August 3, 2023, and reclassified from accrued expenses and other current liabilities to additional paid-in capital on the consolidated balance sheets. Changes in the fair value of the derivative liabilities are recorded within other income (expense) on the consolidated statements of operations. During the three and nine months ended September 30, 2023, the change in fair value of the derivative liabilities was as follows: Three months Ended Nine Months Ended September 30, 2023 September 30, 2023 Estimated fair value - beginning of period $ 29,340 $ — Recognition of derivative liability — 21,180 Change in estimated fair value 212,511 220,671 Reclassification to equity (241,851) (241,851) Estimated fair value - end of period $ — $ — The fair value of the conversion features were estimated by applying a with-and-without approach to a binomial lattice model. The following reflects the ranges of inputs and assumptions used: For the three months ended September 30, 2023 For the three months ended June 30, 2023 Stock price $1.09 - $3.40 $1.09 - $1.38 Conversion price $1.46 - $1.48 $1.46 Risk free rate 3.76% - 4.58% 3.76% - 4.49% Equity volatility 47.50% - 60% 60% - 70% Expected dividend yield —% —% Credit spread 14.9% - 20.1% 16.4% - 17.2% Put right and price differential derivative liabilities On September 13, 2021, the Company entered into an Amended Membership Interest Purchase Agreement (the "Amended MIPA") with Wabash Valley Resources ("WVR") and the sellers party thereto (each, a "Seller"), pursuant to which the Company was subject to the first price differential and second price differential (together the "Price Differential"). The Price Differential was a freestanding financial instrument and accounted for as a derivative liability. The derivative liability was remeasured at each reporting period with changes in its fair value recorded in other income (expense), net on the consolidated statements of operations. The first price differential was settled in the fourth quarter of 2021. The second price differential was settled in the third quarter of 2022 for $6.6 million , eliminating the Company's derivative liability balance as of September 30, 2022. During the three and nine months ended September 30, 2022, the change in fair value of the derivative liability was as follows: Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 Estimated fair value - beginning of the period $ 6,588 $ 4,189 Change in estimated fair value — 2,399 Settlement of second price differential (6,588) (6,588) Estimated fair value - end of the period $ — $ — Liability Classified Awards During the second and third quarters of 2023, the Company reclassified certain share-based payment awards from equity to liabilities that would require cash settlement upon distribution or exercise. The fair value of these awards was determined based on the closing price of the Company's stock or a Black-Scholes model as of the measurement date and as of the end of each reporting period. Changes in the fair value of the liabilities were recognized as compensation cost over the requisite service period. As of August 3, 2023, the share-based payment awards classified as liabilities no longer required cash settlement upon distribution or exercise. The Company reclassified the share-based payment awards into additional paid in capital on the Company's consolidated balance sheets at their fair value. Changes in the fair value of liability classified awards during the three and nine months ended September 30, 2023, were as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Liability classified awards - beginning of the period $ 2,006 $ — Reclassification of share-based payment awards to liability 8,395 10,401 Change in fair value 10,591 10,591 Reclassification of share-based payment awards to equity (20,992) (20,992) Liability classified awards - end of the period $ — $ — (c) Revenue Recognition Truck sales Truck sales consist of revenue recognized on the sales of the Company's trucks. The sale of a truck is generally recognized as a single performance obligation at the point in time when control is transferred to the customer (dealers). Control is deemed transferred when the product is picked up by the carrier and the customer (dealer) can direct the product's use and obtain substantially all of the remaining benefits from the product. The Company may offer certain after-market upgrades at the request of the dealers. If a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation. The Company does not offer returns on truck sales. The Company may be required to repurchase dealer inventory in the event a dealer agreement is terminated. Revenue is recognized based on the transaction price, which is measured as the amount of consideration that the Company expects to receive in exchange for transferring the product pursuant to the terms of the contract with its customer. The transaction price may be adjusted, if applicable, for variable consideration, such as customer rebates and financing costs on floor plan arrangements, which requires the Company to make estimates for the portion of these allowances that have yet to be credited to customers. Payments for trucks sold are made in accordance with the Company's customary payment terms. The Company has elected an accounting policy whereby the Company does not adjust the promised amount of consideration for the effects of a significant financing component because, at contract inception, the Company expects the period between the time when the Company transfers a promised good or service to the customer and the time when the customer pays for that good or service will be one year or less. Sales tax collected from customers is not considered revenue and is accrued until remitted to the taxing authorities. Shipping and handling activities occur after the customer has obtained control of the product, thus the Company has elected to account for those expenses as fulfillment costs in cost of revenues, rather than an additional promised service. Services and other Services and other revenues primarily consists of sales of charging products, service parts, after-market parts, and hydrogen. Sales are generally recognized as a single performance obligation at the point in time when control is transferred to the customer. Control is deemed transferred when the product is delivered to the customer and the customer can direct the product's use and obtain substantially all of the remaining benefits from the asset. The Company does not offer sales returns on products. Payment for products sold are made in accordance with the Company's customary payment terms and the Company's contracts do not have significant financing components. The Company has elected to exclude sales taxes from the measurement of the transaction price. (d) Product Warranties and Recall Campaigns Product warranty costs are recognized upon transfer of control of trucks to dealers, and are estimated based on factors including the length of the warranty, product costs, supplier warranties, and product failure rates. Warranty reserves are reviewed and adjusted quarterly to ensure that accruals are adequate to meet expected future warranty obligations. Initial warranty data is limited early in the launch of a new product and accordingly, future adjustments to the warranty accrual may be material. Recall campaign costs are recognized when a product recall liability is probable and related amounts are reasonably estimable. Costs are estimated based on the number of trucks to be repaired and the required repairs including engineering and development, product costs, labor rates, and shipping. Estimating the cost to repair the trucks is highly subjective and requires significant management judgment. Based on information that is currently available, management believes that the accruals are adequate. It is possible that substantial additional charges may be required in future periods based on new information, changes in facts and circumstances, and actions the Company may commit to or be required to undertake. During the third quarter of 2023, the Company filed a voluntary recall with the National Highway Traffic Safety Administration fo r 209 of the Company's BEV trucks. The recall was initiated as a result of preliminary results of the Company's battery pack thermal event investigation. The investigation was in response to a thermal event caused by a battery pack defect. The Company is transporting all BEV trucks to the Company's Coolidge manufacturing facility where the BEV trucks will be retrofit with battery packs from another supplier. The Company accrued recall campaign costs of $61.8 million for the BEV trucks that are expected to be returned to dealers and customers once the recall work is complete . The Company placed a temporary hold on new BEV truck shipments until its BEV truck inventory has been retrofit with alternative battery packs. See Note 12, Commitments and Contingencies , for additional information. The change in warranty liability for the three and nine months ended September 30, 2023 and 2022 is summarized as follows: Three Months Ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Accrued warranty - beginning of period $ 11,057 $ 2,203 $ 7,788 $ — Warranties issued in period - product warranty 172 2,611 4,245 4,601 Warranties issued in period - recall campaign 61,848 — 61,848 — Net changes in liability for pre-existing warranties (1,084) (213) (1,304) — Warranty costs incurred (1,665) (200) (2,249) (200) Accrued warranty - end of period $ 70,328 $ 4,401 $ 70,328 $ 4,401 As of September 30, 2023, warranty accrual of $62.0 million was recorded in accrued expenses and other current liabilities and $8.4 million in other long-term liabilities on the consolidated balance sheets. As of December 31, 2022, warranty accrual of $1.5 million was recorded in accrued expenses and other current liabilities and $6.3 million in other long-term liabilities on the consolidated balance sheets. (e) Recent Accounting Pronouncements Recently issued accounting pronouncements not yet adopted In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-06 to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the FASB accounting standard codification with the SEC's regulations. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS COMBINATION | BUSINESS COMBINATION Romeo Acquisition On October 14, 2022, the Company completed the Romeo Acquisition. Under the terms of the acquisition, the Company acquired all of the issued and outstanding shares of common stock, par value 0.0001 per share, of Romeo (“Romeo Common Stock”) in exchange for 0.1186 of a share (the "Romeo Exchange Ratio") of the Company's common stock, rounded down to the nearest whole number of shares. Total consideration for the acquisition of Romeo is summarized as follows: Purchase consideration Fair value of Nikola common stock issued to Romeo stockholders (1) $ 67,535 Settlement of pre-existing relationships in the form of loan forgiveness (2) 27,923 Settlement of pre-existing relationships in the form of accounts payable (18,216) Fair value of outstanding stock compensation awards attributable to pre-acquisition services (3) 1,345 Total purchase consideration $ 78,587 (1) Represents the acquisition date fair value of 22.1 million shares of Nikola common stock issued to Romeo stockholders, based on the Romeo Exchange Ratio, at the October 14, 2022 closing price of $3.06 per share. (2) The Company entered into an Agreement and Plan of Merger and Reorganization dated July 30, 2022 (the "Merger Agreement") with Romeo. Concurrently wi th the execution of the Merger Agreement, Romeo entered into a loan agreement (the "Loan Agreement") with the Company as the lender. The Loan Agreement provided for a facility in an aggregate principal amount of up to $30.0 million (subject to certain incremental increases of up to $20.0 million), which were available for drawing subject to certain terms and conditions set forth in the Loan Agreement. Interest was payable on borrowings under the facility at the secured overnight financing rate ("SOFR") plus 8.00%. Upon closing, the loan and related accrued interest were forgiven and considered part of the purchase price. As of acquisition close, Romeo had drawn $12.5 million on the loan and accrued $0.1 million in interest. Additionally, as part of the Loan Agreement entered into with Romeo, the Company agreed to a short-term battery price increase. Through the acquisition close, the Company recorded $15.3 million in prepaid expenses and other current assets on the consolidated balance sheets related to the incremental pack price increase, which was considered part of the purchase consideration upon close. (3) Represents the portion of the fair value of the replacement awards related to services provided prior to the acquisition. The remaining portion of the fair value is associated with future service and will be recognized as expense over the future service period. The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). The purchase price was allocated to the assets acquired and liabilities assumed based on the estimated fair values at the date of acquisition. The acquisition resulted in goodwill due to the purchase consideration exceeding the estimated fair value of the identifiable net assets acquired by $1.5 million. During the second quarter of 2023, the Company transferred ownership of all of Romeo’s right, title and interest in and to all of its tangible and intangible assets to an Assignee, who is designated Assignee to act as the assignee for the benefit of creditors of Romeo. Refer to Note 10, Deconsolidation of Subsidiary , for additional information. |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET COMPONENTS | BALANCE SHEET COMPONENTS Inventory Inventory consisted of the following at September 30, 2023 and December 31, 2022, respectively: As of September 30, 2023 December 31, 2022 Raw materials $ 18,707 $ 52,442 Work in process 22,120 9,646 Finished goods 10,437 47,677 Service parts 5,694 2,105 Total inventory $ 56,958 $ 111,870 Inventory cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Inventories are stated at the lower of cost or net realizable value. Inventories are written down for any excess or obsolescence and when net realizable value, which is based upon estimated selling prices, is in excess of carrying value. Once inventory is written-down, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration of or increase in that newly established cost basis. During the third quarter of 2023, the Company reclassified all BEV truck finished goods inventory to work in process to be retrofit with alternative battery packs related to the Company's voluntary recall. Additionally, during the third quarter of 2023, the Company wrote down BEV inventory related to the existing battery packs, cells and other BEV components which were deemed excess or obsolete due to the voluntary recall. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following at September 30, 2023 and December 31, 2022, respectively: As of September 30, 2023 December 31, 2022 Inventory deposits $ 14,810 $ 415 Prepaid expenses 7,941 5,333 Non-trade receivables 5,827 6,064 Prepaid insurance premiums 3,409 3,611 Headquarters sale agreement receivable 2,600 5,487 Deposits 2,052 3,917 Prepaid software 1,879 1,015 Deferred implementation costs 460 2,101 Total prepaid expenses and other current assets $ 38,978 $ 27,943 Deferred implementation costs Deferred implementation costs are amortized on a straight-line basis over the estimated useful life of the related software. The Company recorded an immaterial amount of amortization expense on the consolidated statements of operations for the three and nine months ended September 30, 2023, related to deferred implementation costs. During the second quarter of 2022 , the Company re-assessed the estimated useful life of its existing enterprise resource planning system as a result of ongoing re-implementation. The Company recorded $1.2 million and $2.4 million of amortization expense on the consolidated statements of operations for the three and nine months ended September 30, 2022, respectively, related to deferred implementation costs. Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following at September 30, 2023 and December 31, 2022: As of September 30, 2023 December 31, 2022 Construction-in-progress $ 217,899 $ 209,187 Buildings 162,795 127,797 Equipment 49,535 35,257 Tooling 38,833 17,693 Finance lease assets 14,887 2,193 Software 8,617 8,568 Land 7,957 24,762 Other 3,683 3,501 Leasehold improvements 3,082 2,953 Furniture and fixtures 1,483 1,492 Demo vehicles — 15,215 Property, plant and equipment, gross 508,771 448,618 Less: accumulated depreciation and amortization (38,920) (30,833) Total property, plant and equipment, net $ 469,851 $ 417,785 Construction-in-progress on the Company's consolidated balance sheets as of September 30, 2023 relates primarily to the expansion of the Company's manufacturing plant in Coolidge, Arizona, and development of hydrogen infrastructure. Depreciation expense for the three months ended September 30, 2023 and 2022 was $15.1 million and $3.9 million, respectively. Depreciation expense for the nine months ended September 30, 2023 and 2022 was $23.9 million and $10.5 million, respectively. In July 2023, the Company executed a membership interest and asset purchase agreement (the "Purchase Agreement") with FFI Phoenix Hub Holdings, LLC, a wholly-owned subsidiary of Fortescue Future Industries ("FFI"). Pursuant to the terms of the Purchase Agreement, FFI Phoenix Hub Holdings, LLC, acquired 100% of the interests in Phoenix Hydrogen Hub, LLC, the Company's wholly owned subsidiary holding the assets related to the Phoenix hydrogen hub project, including land and construction-in-progress. The Company received net proceeds of $20.7 million during the third quarter of 2023 pursuant to the terms of the Purchase Agreement. The Company's proceeds are net of a $3.7 million holdback, related to which the Company recorded $1.2 million in prepaid expenses and other current assets, and $2.5 million in other assets on the consolidated balance sheets. During the third quarter of 2023, the Company reassessed the useful lives of its BEV demo vehicles, and subsequently retired all demo vehicles. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following at September 30, 2023 and December 31, 2022: As of September 30, 2023 December 31, 2022 SEC settlement $ 85,500 $ 90,000 Warranty liability, current 61,953 1,484 Accrued purchase of intangible asset 13,216 32,126 Inventory received not yet invoiced 12,696 18,167 Accrued outsourced engineering services 7,845 8,056 Accrued legal expenses 6,618 2,041 Accrued payroll and payroll related expenses 5,797 8,298 Other accrued expenses 4,264 2,152 Accrued purchases of property, plant and equipment 3,718 3,587 Operating lease liabilities, current 2,434 1,979 Accrued Equity Distribution Agreement fees 1,114 1,681 Supply agreement revision commitment — 10,000 Total accrued expenses and other current liabilities $ 205,155 $ 179,571 |
INVESTMENTS IN AFFILIATES
INVESTMENTS IN AFFILIATES | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENTS IN AFFILIATES | INVESTMENTS IN AFFILIATES Investments in unconsolidated affiliates accounted for under the equity method consisted of the following: As of Ownership as of September 30, 2023 September 30, 2023 December 31, 2022 Nikola Iveco Europe GmbH — % $ — $ 4,142 Wabash Valley Resources LLC 20 % 57,193 57,674 Nikola - TA HRS 1, LLC 50 % 1,000 1,000 $ 58,193 $ 62,816 Equity in net loss of affiliates on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Equity in net loss of affiliates: Nikola Iveco Europe GmbH $ — $ (1,959) $ (15,556) $ (5,998) Wabash Valley Resources LLC (262) (25) (731) (76) Total equity in net loss of affiliates $ (262) $ (1,984) $ (16,287) $ (6,074) Nikola Iveco Europe GmbH In April 2020, the Company and Iveco S.P.A. ("Iveco") became parties to a series of agreements which established a joint venture in Europe, Nikola Iveco Europe GmbH. The operations of the joint venture are located in Ulm, Germany, and consist of manufacturing the FCEV and BEV Class 8 trucks for the European market. The agreements provided for a 50/50 ownership of the joint venture and a 50/50 allocation of the joint venture's production volumes and profits between the Company and Iveco. Nikola Iveco Europe GmbH was considered a variable interest entity ("VIE") due to insufficient equity to finance its activities without additional subordinated financial support. The Company was not considered the primary beneficiary as it did not have the power to direct the activities that most significantly impact the economic performance based on the terms of the agreements. Accordingly, the VIE was accounted for under the equity method. On June 29, 2023 (the "Divestiture Closing"), the Company and Iveco executed the European Joint Venture Transaction Agreement (the "Transaction Agreement") whereby the Company sold its 50% equity interest in Nikola Iveco Europe GmbH to Iveco for $35.0 million. In conjunction with the Transaction Agreement, the Company issued an intellectual property license agreement (the “License Agreement”), which grants Iveco and Nikola Iveco Europe GmbH a non-exclusive, perpetual, irrevocable, fully sublicensable, transferable, and fully assignable license ("Licensed Software") to software and controls technology related to the BEV and FCEV. According to the terms of the Transaction Agreement, the Company was eligible to receive 20.6 million shares of its own common stock from Iveco, contingent on successful due diligence ("Software Due Diligence") performed by Iveco and its consultants on the Licensed Software delivered to Iveco on the Divestiture Closing pursuant to the License Agreement. The Software Due Diligence was evaluated based on mutually agreed criteria between Iveco and the Company. On the Divestiture Closing, the Company recognized a gain equal to the difference between the consideration received and its basis in the Nikola Iveco Europe GmbH investment, consisting of a liability balance of $11.4 million for investment in affiliates, and cumulative currency translation losses of $1.5 million. The delivery of the Licensed Software on the Divestiture Closing was determined to represent a right to use the Licensed Software and the performance obligation was satisfied upon the delivery of the Licensed Software on Divestiture Closing. The Company recognized gains related to the derecognition of its basis in Nikola Iveco Europe GmbH and delivery of the Licensed Software in gain on divestiture of affiliate on the consolidated statements of operations. During the nine months ended September 30, 2023, the Company recognized a gain of $70.8 million in gain on divestiture of affiliates consisting of the following: Nine Months Ended September 30, 2023 Cash consideration received $ 35,000 Contingent stock consideration receivable 25,956 Derecognition of investment in affiliate 11,428 Derecognition of cumulative currency translation losses (1,535) Gain on divestiture of affiliate $ 70,849 Contingent stock consideration received The contingent stock consideration was accounted for as variable consideration and included in total consideration as of Divestiture Closing, as it was not probable that a significant reversal of such consideration would occur upon resolution of the contingency. On August 3, 2023, the Software Due Diligence was deemed successful and Iveco transferred to the Company 20.6 million shares of Nikola common stock, which were immediately retired. The Company recognized the fair value of the common stock upon receipt in accumulated deficit on the consolidated balance sheets. The fair value of the contingent stock consideration was measured based on the closing price of the Company's common stock price, with changes in fair value recognized in other income (expense), net on the consolidated statements of operations. During the three and nine months ended September 30, 2023, the change in fair value of the contingent stock consideration was as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Fair value - beginning of the period $ 28,428 $ — Contingent stock consideration recognized on Divestiture Closing — 25,956 Change in fair value 41,509 43,981 Delivery of shares for stock consideration (69,937) (69,937) Fair value - end of the period $ — $ — Wabash Valley Resources LLC On June 22, 2021, the Company entered into a Membership Interest Purchase Agreement (the "MIPA") with WVR and the Sellers, pursuant to which, the Company purchased a 20% equity interest in WVR in exchange for $25.0 million in cash and 1,682,367 shares of the Company’s common stock. WVR is developing a clean hydrogen project in West Terre Haute, Indiana, including a hydrogen production facility. The common stock consideration was calculated based on the Company's 30-day average closing stock price, or $14.86 per share, and the Company issued 1,682,367 shares of its common stock. The Company's interest in WVR is accounted for under the equity method and is included in investment in affiliates on the Company's consolidated balance sheets. Included in the initial carrying value was a basis difference of $55.5 million due to the difference between the cost of the investment and the Company's proportionate share of WVR's net assets. The basis difference is primarily comprised of property, plant and equipment and intangible assets. As of September 30, 2023, the Company's maximum exposure to loss was $57.7 million, which represents the book value of the Company's equity interest and loans to WVR for $0.5 million. Nikola - TA HRS 1, LLC In March 2022, the Company and Travel Centers of America, Inc. ("TA") entered into a series of agreements which established a joint venture, Nikola - TA HRS 1, LLC. The operations expected to be performed by the joint venture consist of the development, operation and maintenance of a hydrogen fueling station. Operations have not commenced as of September 30, 2023. The agreements provide for 50/50 ownership of the joint venture. Both parties are entitled to appoint an equal number of board members to the management committee of the joint venture. Pursuant to the terms of the agreements, the Company contributed $1.0 million to Nikola - TA HRS 1, LLC in 2022. Nikola - TA HRS 1, LLC is considered a VIE due to insufficient equity to finance its activities without additional subordinated financial support. The Company is not considered the primary beneficiary as it does not have the power to direct the activities that most significantly impact the economic performance based on the terms of the agreements. Accordingly, the VIE is accounted for under the equity method. The Company does not guarantee debt for, or have other financial support obligations to the entity and its maximum exposure to loss in connection with its continuing involvement with the entity is limited to the carrying value of the investment. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | INTANGIBLE ASSETS, NET The gross carrying amount and accumulated amortization of separately identifiable intangible assets are as follows: As of September 30, 2023 Gross Carrying Accumulated Net Carrying Licenses: S-WAY Product and Platform license $ 50,000 $ 10,714 $ 39,286 FCPM license 47,181 — 47,181 Other intangibles 1,650 405 1,245 Total intangible assets $ 98,831 $ 11,119 $ 87,712 As of December 31, 2022 Gross Carrying Accumulated Net Carrying Licenses: S-WAY Product and Platform license $ 50,000 $ 5,357 $ 44,643 FCPM license 47,181 — 47,181 Other intangibles 800 151 649 Total intangible assets $ 97,981 $ 5,508 $ 92,473 Amortization expense related to intangible assets for the three and nine months ended September 30, 2023 was $1.9 million and $5.6 million, respectively. Amortization expense related to intangible assets for the three and nine months ended September 30, 2022 was $1.7 million and $3.6 million, respectively. In 2021, the Company acquired a license for fuel cell power modules ("FCPMs") for use in the production of FCEVs. The Company expects to amortize the license beginning at the start of in-house FCPM production, expected to commence i n the first half of 2024. As of September 30, 2023, the Company has not started amortizing the license. |
DEBT AND FINANCE LEASE LIABILIT
DEBT AND FINANCE LEASE LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCE LEASE LIABILITIES | DEBT AND FINANCE LEASE LIABILITIES A summary of debt and finance lease liabilities as of September 30, 2023 and December 31, 2022, were as follows: As of September 30, 2023 December 31, 2022 Current: Senior Convertible Notes $ 32,381 $ 50,000 Insurance premium financing 3,673 1,999 Finance lease liabilities 2,370 367 Promissory notes 686 9,309 Financing obligations 67 — Debt and finance lease liabilities, current $ 39,177 $ 61,675 As of September 30, 2023 December 31, 2022 Non-current: Toggle Convertible Notes $ 119,291 $ 199,786 Financing obligations 101,233 50,359 Promissory notes 2,501 39,165 Finance lease liabilities 9,346 818 Long-term debt and finance lease liabilities, net of current portion $ 232,371 $ 290,128 The fair values of the following debt obligations are estimated using level 2 fair value inputs, including stock price and risk-free rates. The following table presents the carrying value and estimated fair values: As of September 30, 2023 Carrying Value Fair Value June 2022 Toggle Convertible Notes $ 111,003 $ 93,788 June 2023 Toggle Convertible Notes 8,288 13,220 Second Collateralized Note 3,187 3,086 Insurance Premium financing 2,372 2,370 September 2023 Insurance Premium financing 1,224 1,220 Toggle Convertible Notes In June 2022, the Company completed a private placement of $200.0 million aggregate principal amount of the Company's June 2022 Toggle Convertible Notes, which will mature on May 31, 2026. The June 2022 Toggle Convertible Notes were issued pursuant to an indenture, dated as of June 1, 2022 (the "June 2022 Toggle Convertible Notes Indenture"). In April 2023, the Company completed an exchange of $100.0 million aggregate principal amount of the Company's June 2022 Toggle Convertible Notes for the issuance of $100.0 million aggregate principal amount of April 2023 Toggle Convertible Notes, which will mature on May 31, 2026. The April 2023 Toggle Convertible Notes were issued pursuant to the April 2023 Toggle Convertible Notes Indenture. In conjunction with the issuance of the April 2023 Toggle Convertible Notes, the Company executed the first supplemental indenture to the June 2022 Toggle Convertible Notes Indenture dated as of April 3, 2023 (the "First Supplemental Indenture to June 2022 Notes"), and the second supplemental indenture to the June 2022 Toggle Convertible Notes Indenture dated as of April 10, 2023 (the "Second Supplemental Indenture to June 2022 Notes"), which First Supplemental Indenture to June 2022 Notes, among other things, amended the conversion provisions of the June 2022 Toggle Convertible Notes Indenture to limit conversions of the June 2022 Toggle Convertible Notes in certain instances until the earlier to occur of (x) an increase in the number of authorized shares in an amount sufficient to, among other things, allow for the issuance of common stock underlying the June 2022 Toggle Convertible Notes and (y) October 11, 2023, and provide that the Company shall elect to settle conversions of the June 2022 Toggle Convertible Notes in cash prior to such increase in the number of authorized shares. Additionally, in June 2023, the Company completed a private placement of $11.0 million aggregate principal amount of the Company's June 2023 Toggle Convertible Notes (together with the June 2022 Toggle Convertible Notes and the April 2023 Toggle Convertible Notes, the "Toggle Convertible Notes"), which will mature on May 31, 2026. The June 2023 Toggle Convertible Notes were issued pursuant to the June 2023 Toggle Convertible Notes Indenture (together with the June 2022 Toggle Convertible Notes Indenture and the April 2023 Toggle Convertible Notes Indenture, the "Toggle Convertible Notes Indentures"). The June 2023 Toggle Convertible Notes were issued in consideration as a consent fee to the holders for execution of the third supplemental indenture to the June 2022 Toggle Convertible Notes Indenture dated as of June 23, 2023 (the "Third Supplemental Indenture to June 2022 Notes"), and the first supplemental indenture to the April 2023 Toggle Convertible Notes Indenture dated as of June 23, 2023 (the "First Supplemental Indenture to April 2023 Notes"), which, among other things, released Romeo as a guarantor of the June 2022 Toggle Convertible Notes and the April 2023 Toggle Convertible Notes, respectively. Below is a summary of certain terms of the Toggle Convertible Notes: Interest Payments The Company can elect to make any interest payment on the Toggle Convertible Notes in cash ("Cash Interest"), through the issuance of additional Toggle Convertible Notes in the form of the Toggle Convertible Notes with respect to which such interest is due ("PIK Interest"), or any combination thereof. Interest on the Toggle Convertible Notes is payable semi-annually in arrears. The interest rates and payment dates for each of the Toggle Convertible Notes is summarized below: June 2022 Toggle Convertible Notes April 2023 Toggle Convertible Notes June 2023 Toggle Convertible Notes PIK interest rate (per annum) 11.00% 11.00% 8.00% Cash interest rate (per annum) 8.00% 8.00% 8.00% Semi-annual interest payable dates May 31 and November 30 of each year May 31 and November 30 of each year June 30 and December 31 of each year First interest payment date November 30, 2022 May 31, 2023 December 31, 2023 The April 2023 Toggle Convertible Note and June 2023 Toggle Convertible Note shall bear interest at the applicable Cash Interest rate or PIK Interest rate from November 30, 2022 and June 23, 2023, respectively. Conversions Based on the applicable conversion rates, the Toggle Convertible Notes are convertible into cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. However, conversions of the Toggle Convertible Notes are limited in certain instances until the earlier to occur of (x) an increase in the number of authorized shares in an amount sufficient to, among other things, allow for the issuance of common stock underlying such Toggle Convertible Notes and (y) October 11, 2023, and the Company shall elect to settle conversions of the Toggle Convertible Notes in cash until such increase in the number of authorized shares has occurred and in the case of conversions of the April 2023 Toggle Convertible Notes, the Company obtains the stockholder approval contemplated by Nasdaq Rule 5635. The Company amended its Second Amended and Restated Certificate of Incorporation to increase the number of authorized shares of common stock from 800,000,000 to 1,600,000,000, following approval by the stockholders at the Company's annual meeting of stockholders on August 3, 2023. The initial conversion rates are 114.3602 and 686.8132 shares per $1,000 principal amount of the June 2022 Toggle Convertible Notes and April 2023 Toggle Convertible Notes, respectively, subject to customary anti-dilution adjustments in certain circumstances, which represent initial conversion prices of approximately $8.74 and $1.46 per share, respectively. With respect to the June 2023 Toggle Convertible Notes, the initial conversion rate shall be an amount equal to (a) 674.4258 divided by (b) a quotient, (i) the numerator of which is the sum of (x) the initial principal amount of the June 2023 Toggle Convertible Notes outstanding immediately prior to such conversion and (y) the aggregate amount capitalized related to PIK Interest issuances in respect of interest that came due on the June 2023 Toggle Convertible Notes and (ii) the denominator of which is the initial principal amount of the June 2023 Toggle Convertible Notes. The Toggle Convertible Notes Indentures provide that prior to February 28, 2026, the Toggle Convertible Notes will be convertible at the option of the holders only upon the occurrence of specified events and during certain periods, and will be convertible on or after February 28, 2026, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date of the Toggle Convertible Notes. Holders of the Toggle Convertible Notes will have the right to convert all or a portion of their Toggle Convertible Notes prior to the close of business on the business day immediately preceding February 28, 2026 only under the following circumstances: (i) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2022 for the June 2022 Toggle Convertible Notes, during any fiscal quarter commencing after the fiscal quarter ending on June 30, 2023 for the April 2023 Toggle Convertible Notes, during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2023 for the June 2023 Toggle Convertible Notes (and only during such fiscal quarter), if the last reported sale price of the Common Stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price for the Toggle Convertible Notes on each applicable trading day; (ii) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the Toggle Convertible Notes for each trading day of that ten consecutive trading day period was less than 98% of the product of the last reported sale price of the Common Stock and the conversion rate of the Toggle Convertible Notes on each such trading day; (iii) if the Company calls such Toggle Convertible Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (iv) upon the occurrence of specified corporate events. Redemption Except with respect to the June 2023 Toggle Convertible Notes as described in the immediately succeeding paragraph, the Company may not redeem the Toggle Convertible Notes prior to June 1, 2025. The Company may redeem the Toggle Convertible Notes in whole or in part, at its option, on or after such date and prior to the 26th scheduled trading day immediately preceding the maturity date, for a cash purchase price equal to the aggregate principal amount of any Toggle Convertible Notes to be redeemed plus accrued and unpaid interest. The June 2023 Toggle Convertible Notes provide for an additional optional redemption period from the initial issuance of such Toggle Convertible Notes through the first interest payment date of December 31, 2023, in whole and not in part for a cash purchase price equal to the aggregate principal amount of the June 2023 Toggle Convertible Notes. In addition, following certain corporate events that occur prior to the maturity date or following issuance by the Company of a notice of redemption, in certain circumstances, the Company will increase the conversion rate for a holder who elects to convert its Toggle Convertible Notes (other than the June 2023 Toggle Convertible Notes) in connection with such a corporate event or who elects to convert any such Toggle Convertible Notes called for redemption during the related redemption period. Additionally, in the event of a fundamental change or a change in control transaction, holders of the Toggle Convertible Notes will have the right to require the Company to repurchase all or a portion of their Toggle Convertible Notes at a price equal to 100% of the capitalized principal amount of such Toggle Convertible Notes, in the case of a fundamental change, or 130% of the capitalized principal amount of such Toggle Convertible Notes, in the case of change in control transactions, in each case plus any accrued and unpaid interest to, but excluding, the repurchase date. The Toggle Convertible Notes Indentures include restrictive covenants that, subject to specified exceptions, limit the ability of the Company and its subsidiaries to incur secured debt in excess of $500.0 million, incur other subsidiary guarantees, and sell equity interests of any subsidiary that guarantees the Toggle Convertible Notes. In addition, the Toggle Convertible Notes Indentures include customary terms and covenants, including certain events of default after which the holders may accelerate the maturity of the Toggle Convertible Notes issued thereunder and cause them to become due and payable immediately upon such acceleration. In conjunction with the issuance of the June 2022 Toggle Convertible Notes, the Company executed the Put Premium which was determined to be an embedded derivative that met the criteria for bifurcation from the host. The total proceeds received were first allocated to the fair value of the bifurcated derivative asset, and the remaining proceeds allocated to the host resulting in an adjustment to the initial purchasers' debt discount. The net proceeds from the sale of the June 2022 Toggle Convertible Notes were $183.2 million, net of initial purchasers' discounts and debt issuance costs. Unamortized debt discount and issuance costs were reported as a direct deduction from the face amount of the June 2022 Toggle Convertible Notes. During the second quarter of 2023, the exchange of $100.0 million of June 2022 Toggle Convertible Notes for the issuance of $100.0 million of April 2023 Toggle Convertible Notes was determined to represent a substantial change in terms and extinguishment accounting was applied. The Company recognized a loss on debt extinguishment of $20.4 million for the nine months ended September 30, 2023. As part of the assessment of the exchange, the Company bifurcated the conversion features on the April 2023 Toggle Convertible Notes and recognized a derivative liability of $21.2 million as of the exchange date, resulting in an adjustment to the debt discount. Additionally, during the second quarter of 2023, the execution of the Third Supplemental Indenture to June 2022 Notes and First Supplemental Indenture to April 2023 Notes were deemed modifications to the Toggle Convertible Notes outstanding under the June 2022 Toggle Convertible Notes Indenture and April 2023 Toggle Convertible Notes Indenture, respectively, as the amended terms did not substantially change the terms of the respective notes. The consideration paid to the holders in the form of the issuance of the June 2023 Toggle Convertible Notes was recognized as an issuance cost upon modification and is amortized as an adjustment of interest expense over the remaining terms of the June 2022 Toggle Convertible Notes and April 2023 Toggle Convertible Notes. On August 4, 2023, the holders of the April 2023 Toggle Convertible Notes exercised their conversion right for all the outstanding principal amount. The Company elected to settle the conversion with the issuance of 72,458,789 shares of common stock. The remaining unamortized discount was recognized in interest expense, net on the consolidated statements of operations due to the reclassification of the conversion feature to equity. The net carrying amounts of the debt component of the Toggle Convertible Notes as of September 30, 2023 were as follows: June 2022 Toggle Convertible Notes June 2023 Toggle Convertible Notes Principal amount $ 117,041 $ 11,000 Accrued PIK interest 4,327 237 Unamortized discount (2,502) (2,949) Unamortized issuance costs (7,863) — Net carrying amount $ 111,003 $ 8,288 The net carrying amounts of the debt component of the Toggle Convertible Notes as of December 31, 2022 were as follows: June 2022 Toggle Convertible Notes Principal amount $ 210,939 Accrued PIK interest 1,998 Unamortized discount (6,443) Unamortized issuance costs (6,708) Net carrying amount $ 199,786 As of September 30, 2023, the effective interest rates on the June 2022 Toggle Convertible Notes and June 2023 Toggle Convertible Notes were 13.90% and 8.00%, respectively. A mortization of the debt discount and issuance costs is reported as a component of interest expense and is computed using the straight-line method over the term of the applicable Toggle Convertible Notes, which approximates the effective interest method. The following table presents the Company's interest expense related to the June 2022 Toggle Convertible Notes: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contractual interest expense $ 3,219 $ 5,500 $ 12,464 $ 7,284 Amortization of debt discount and issuance costs 785 922 2,520 1,228 Total interest expense $ 4,004 $ 6,422 $ 14,984 $ 8,512 The following table presents the Company's interest expense related to the April 2023 Toggle Convertible Notes: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Contractual interest expense $ 1,096 $ 3,562 Amortization of debt discount and issuance costs 41,530 42,242 Total interest expense $ 42,626 $ 45,804 For the three and nine months ended September 30, 2023, the Company recognized an immaterial amount of interest expense on the June 2023 Toggle Convertible Notes. Senior Convertible Notes First Purchase Agreement Notes On December 30, 2022, the Company entered into a securities purchase agreement (the “First Purchase Agreement”) with the investors named therein for the sale of up to $125.0 million in initial principal amount of senior convertible notes (the “First Purchase Agreement Notes”), in a registered direct offering. The First Purchase Agreement Notes are convertible into shares of the Company’s common stock, subject to certain conditions and limitations. The Company consummated an initial closing for the sale of $50.0 million in aggregate principal amount of First Purchase Agreement Notes on December 30, 2022 (the "Series A Notes"). Subsequent to the initial closing, the Company entered into amended securities purchase agreements (the "Amended Purchase Agreements") pursuant to which the Company consummated additional closings on March 17, 2023 for the sale of $25.0 million in aggregate principal amount of First Purchase Agreement Notes (the "Series B-1 Notes"), on May 10, 2023 for the sale of $15.0 million in aggregate principal amount of First Purchase Agreement Notes (the "Series B-2 Notes"), and on May 25, 2023 for the sale of $12.1 million in aggregate principal amount of First Purchase Agreement Notes (the "Series B-3 Notes"). The purchase price for the First Purchase Agreement Notes is $1,000 per $1,000 principal amount. Subject to certain conditions being met or waived, at the option of the Company, one or more ad ditional closings for up to the remaining principal amount of First Purchase Agreement Notes may occur. Each First Purchase Agreement Note will accrue interest at a rate of 5% per annum, payable in arrears on the first calendar day of each calendar quarter, beginning April 1, 2023 for the Series A Notes, June 1, 2023 for the Series B-1 Notes and July 1, 2023 for the Series B-2 and Series B-3 Notes. Interest will be payable in cash or shares of the Company's common stock or in a combination of cash and shares of common stock, at the Company’s option. The interest rate will increase to an annual rate of 12.5% per annum upon the occurrence and during the continuance of an event of default under the term of the First Purchase Agreement Notes. Each First Purchase Agreement Note issued pursuant to the First Purchase Agreement and Amended Purchase Agreements will have a maturity date of one year from issuance, which may be extended at the option of the noteholders in certain instances. Upon any conversion, redemption or other repayment of a First Purchase Agreement Note, a “make-whole” amount equal to the amount of additional interest that would accrue under such First Purchase Agreement Note at the interest rate then in effect assuming that the outstanding principal of such First Purchase Agreement Notes remained outstanding through and including the maturity date of such First Purchase Agreement Note. At any time on or after January 9, 2023, all or any portion of the principal amount of each First Purchase Agreement Note, plus accrued and unpaid interest, any make-whole amount and any late charges thereon (the “Conversion Amount”), is convertible at any time, in whole or in part, at the noteholder’s option, into shares of the Company's common stock at a conversion price per share (the “Conversion Price”) equal to the lower of (i) the applicable “reference price”, subject to certain adjustments (the “Reference Price”), (ii) the greater of (x) the applicable “floor price” (the “Floor Price”) and (y) the volume weighted average price (“VWAP”) of the Common Stock as of the conversion date, and (iii) the greater of (x) the Floor Price, and as elected by the converting noteholder, (y) either (X) depending on the delivery time of the applicable conversion notice, (1) the VWAP as of the applicable conversion date or (2) the VWAP immediately prior to the applicable conversion date and (Y) 95% of the average VWAP for the three trading days commencing on, and including, the applicable conversion date, subject to adjustment in accordance with the terms of the Notes. The Reference Price and Floor Price applicable to each issuance of First Purchase Agreement Notes is summarized below: Reference Price Floor Price Series A Notes $ 5.975 $ 0.478 Series B-1 Notes $ 4.050 $ 0.478 Series B-2 Notes $ 2.140 $ 0.478 Series B-3 Notes $ 1.952 $ 0.478 At any time during an Event of Default Redemption Right Period (as defined below), a noteholder may alternatively elect to convert all or any portion of the First Purchase Agreement Notes at an alternate conversion rate (the “Alternate Conversion Rate”) equal to the quotient of (i) 115% of the Conversion Amount divided by (ii) the Conversion Price. Upon a change of control, a noteholder may, subject to certain exceptions, require the Company to redeem all, or any portion, of the First Purchase Agreement Notes in cash at a price equal to 115% of the greatest of: (i) the Conversion Amount, (ii) the product of (x) the Conversion Amount and (y) the quotient of (I) the greatest closing sale price of the common stock during the period beginning on the date immediately preceding the earlier to occur of (1) the consummation of a change of control and (2) the public announcement of such change of control, and ending on the date the noteholder notifies the Company of its exercise of its right to redeem pursuant to the change of control divided by (II) the Conversion Price, and (iii) the product of (x) the Conversion Amount and (y) the quotient of (I) the aggregate consideration per share of common stock to be paid to the holders of the Common Stock upon consummation of such change of control divided by (II) the Conversion Price. At any time an “Equity Conditions Failure” (as defined in the First Purchase Agreement Notes) exists at the time of consummation of certain “Subsequent Placements” (as defined in the Purchase Agreement), the noteholders have the right, subject to certain exceptions, to require that the Company redeem all, or any portion, of the Conversion Amount of the Notes not in excess of the gross proceeds of such Subsequent Placement at a redemption price of 100% of the Conversion Amount to be redeemed. If the noteholder is participating in such Subsequent Placement, the noteholder may require the Company to apply all, or any part, of any amounts that would otherwise be payable to the noteholder in such redemption, on a dollar-for-dollar basis, against the purchase price of the securities to be purchased by the noteholder in such Subsequent Placement. A noteholder will not have the right to convert any portion of the First Purchase Agreement Notes, to the extent that, after giving effect to such conversion, the noteholder (together with certain of its affiliates and other related parties) would beneficially own in excess of 4.99% of the shares of common stock outstanding immediately after giving effect to such conversion (the “Maximum Percentage”). The noteholder may from time to time increase the Maximum Percentage to 9.99%, provided that any such increase will not be effective until the 61st day after delivery of a notice to the Company of such increase. The First Purchase Agreement Notes provide for certain Events of Default, including certain types of bankruptcy or insolvency events of default involving the Company after which the First Purchase Agreement Notes become automatically due and payable. At any time after the earlier of (x) a noteholder’s receipt of a required notice of an event of default, and (y) the noteholder becoming aware of an event of default, and ending on the twentieth trading day after the later of (I) the date such event of default is cured, and (II) the investor’s receipt of an event of default notice from the Company (such period, the “Event of Default Redemption Rights Period”), the noteholder may require the Company to redeem, subject to certain exceptions, all or any portion of its Notes at a price equal to 115% of the greater of (i) the Conversion Amount and (ii) the product of the Alternate Conversion Rate and the greatest closing sale price of the common stock on any trading day during the period commencing on the date immediately preceding such Event of Default and ending on the trading day immediately prior to the date the Company makes the entire redemption payment. The Company will be subject to certain customary affirmative and negative covenants regarding the rank of the Senior Convertible Notes, the incurrence of certain indebtedness, the repayment of certain indebtedness, transactions with affiliates, and restrictions on certain issuance of securities, among other customary matters. The following table summarizes conversions of the First Purchase Agreement Notes during the nine months ended September 30, 2023: Series A Notes Series B-1 Notes Series B-2 Notes Series B-3 Notes Shares of common stock issued for conversions 21,785,618 21,127,720 21,758,268 22,639,159 Principal balance converted $ 50,000 $ 25,000 $ 15,000 $ 12,075 Make-whole interest converted $ 2,500 $ 1,250 $ 750 $ 604 Average conversion price $ 2.41 $ 1.24 $ 0.72 $ 0.56 The Company elected to account for the First Purchase Agreement pursuant to the fair value option under ASC 825. ASC 825-10-15-4 provides for the “fair value option” (“FVO”) election, to the extent not otherwise prohibited by ASC 825-10-15-5, to be afforded to financial instruments, wherein the financial instrument is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. The Company believes that the fair value option better reflects the underlying economics of the First Purchase Agreement Notes. As of December 31, 2022, the Company recognized $50.0 million on the consolidated balance sheets for the fair value of First Purchase Agreement Notes outstanding. The First Purchase Agreement was terminated in the third quarter of 2023. Second Purchase Agreement Notes On August 21, 2023, the Company entered into a securities purchase agreement (the "Second Purchase Agreement" ) with the investors named therein for the sale of up to $325.0 million in initial principal amount of senior convertible notes (the “ Second Purchase Agreement Notes ”), in a registered direct offering. Pursuant to Nasdaq Rule 5635, the Company is limited to the issuance of an aggregate of 171,179,577 shares under the terms of the Second Purchase Agreement. The Second Purchase Agreement Notes (together with the First Purchase Agreement Notes, the "Senior Convertible Notes") are convertible into shares of the Company’s common stock, subject to certain conditions and limitations. The Company consummated an initi al closing for the sale of $125.0 million in aggregate principal amount of Second Purchase Agreement Notes on August 21, 2023 (the "Series A-1 Notes"). Subsequent to the initial closing, the Company entered into a supplemental indenture pursuant to which the Company consummated an additional closing on September 22, 2023 for the sale of $40.0 million in aggregate principal amount of Second Purchase Agreement Notes (the "Series A-2 Notes"). The purchase price for the Second Purchase Agreement Notes is $1,000 per $1,000 principal amount. Subject to certain conditions being met or waived, at the option of the Company, one or more additional closings for up to the remaining principal amount of Second Purchase Agreement Notes may occur. The aggregate principal amount of Second Purchase Agreement Notes that may be offered in the additional closings may not be more than $160.0 million and the Company’s option to sell additional Second Purchase Agreement Notes will be exercisable until the 18 month anniversary of the date of the Second Purchase Agreement. Each Second Purchase Agreement Note will accrue interest at a rate of 5% per annum, payable in arrears on the first calendar day of each calendar quarter, beginning January 1, 2024 for the Series A-1 Notes and for the Series A-2 Notes. Interest will be payable in cash or shares of the Company's common stock or in a combination of cash and shares of common stock, at the Company’s option. The interest rate will increase to an annual rate of 12.5% per annum upon the occurrence and during the continuance of an event of default under the term of the Second Purchase Agreement Notes. Each Second Purchase Agreement Note issued pursuant to the Second Purchase Agreement will have a maturity date of one year from issuance, which may be extended at the option of the noteholders in certain instances. Upon any conversion, redemption or other repayment of a Second Purchase Agreement Note, a “make-whole” amount equal to the amount of additional interest that would accrue under such Second Purchase Agreement Note at the interest rate then in effect assuming that the outstanding principal of such Second Purchase Agreement Notes remained outstanding through and including the maturity date of such Second Purchase Agreement Note. At any time on or after August 21, 2023, the Conversion Amount is convertible at any time, at the Conversion Price. The Reference Price and Floor Price applicable to each issuance of Second Purchase Agreement Notes is summarized below: Reference Price Floor Price Series A-1 Notes $ 2.940 $ 0.380 Series A-2 Notes $ 2.940 $ 0.380 The following table summarizes conversions of the Second Purchase Agreement Notes during the three and nine months ended September 30, 2023: Series A-1 Notes Series A-2 Notes Shares of common stock issued for conversions 128,380,608 5,721,018 Principal balance converted $ 125,000 $ 7,619 Make-whole interest converted $ 6,250 $ 381 Average conversion price $ 1.02 $ 1.40 The Company elected to account for the Second Purchase Agreement Notes pursuant to the fair value option under ASC 825. As of September 30, 2023, the Company recognized $32.4 million on the consolidated balance sheets for the fair value of Second Purchase Agreement Notes outstanding. Financing Obligations On May 10, 2022 (the "Sale Date"), the Company entered into a sale agreement (the "Sale Agreement"), pursuant to which the Company sold the land and property related to the Company's headquarters in Phoenix, Arizona for a purchase price of $52.5 million. As of the Sale Date, $13.1 million was withheld from the proceeds received related to portions of the headquarters undergoing construction. The Company receives the remaining proceeds throughout the completion of construction pursuant to the terms of the Sale Agreement. Concurrent with the sale, the Company entered into a lease agreement (the "Lease Agreement"), whereby the Company leased back the land and property related to the headquarters for an initial term of 20 years with four extension options for 7 years each. As of the Sale Date, the Company considered one extension option reasonably certain of being exercised. The buyer is not considered to have obtained control of the headquarters because the lease is classified as a finance lease. Accordingly, the sale of the headquarters is not recognized and the property and land continue to be recognized on the Company's consolidated balance sheets. As of the Sale Date, the Company recorded $38.3 million as a financing obligation on the Company's consolidated balance sheets representing proceeds received net of debt issuance costs of $1.1 million. Rent payments under the terms of the Lease Agreement will be allocated between interest expense and principal repayments using the effective interest method. Additionally, debt issuance costs will be amortized to interest expense over the lease term. After the Sale Date and through September 30, 2023, the Company recognized an additional $13.1 million for financing obligations on the Company's consolidated ba |
CAPITAL STRUCTURE
CAPITAL STRUCTURE | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
CAPITAL STRUCTURE | CAPITAL STRUCTURE Shares Authorized As of September 30, 2023, the Company had authorized a total of 1,750,000,000 shares consisting of 1,600,000,000 shares designated as common stock and 150,000,000 shares designated as preferred stock. Warrants As of September 30, 2023 and December 31, 2022, the Company had 841,183 and 1,137,850 private warrants outstanding, respectively. The Company assumed the private warrants previously issued by VectoIQ Acquisition Corp. ("VectoIQ") and Romeo through the Business Combination and Romeo Acquisition, respectively, and each private warrant entitles the registered holder to purchase one share of common stock at a price of $11.50 or $96.96 per share, respectively, subject to adjustment. The exercise price and number of common shares issuable upon exercise of the private warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the private warrants will not be adjusted for the issuance of common stock at a price below their exercise price. For the three months ended September 30, 2023 and 2022, the Company recorded zero, and a $0.6 million gain, respectively, for revaluation of warrant liability on the consolidated statement of operations. For the nine months ended September 30, 2023 and 2022, the Company recorded gains of $0.3 million and $3.5 million, respectively, for revaluation of warrant liability on the consolidated statement of operations. As of September 30, 2023 and December 31, 2022, the Company had $0.1 million and $0.4 million, respectively, for warrant liability related to the private warrants outstanding on the consolidated balance sheets. Stock Purchase Agreements First Purchase Agreement with Tumim Stone Capital LLC On June 11, 2021, the Company entered into a common stock purchase agreement (the "First Tumim Purchase Agreement") and a registration rights agreement (the "Registration Rights Agreement") with Tumim Stone Capital LLC ("Tumim"), pursuant to which Tumim committed to purchase up to $300.0 million in shares of the Company's common stock, subject to certain limitations and conditions set forth in the First Tumim Purchase Agreement. The Company shall not issue or sell any shares of common stock under the First Tumim Purchase Agreement which, when aggregated with all other shares of common stock beneficially owned by Tumim, would result in beneficial ownership of more than 4.99% of the Company's outstanding shares of common stock. Under the terms of the First Tumim Purchase Agreement, the Company has the right, but not the obligation, to sell to Tumim, shares of common stock over the period commencing on the date of the First Tumim Purchase Agreement (the “Tumim Closing Date”) and ending on the first day of the month following the 36-month anniversary of the Tumim Closing Date. The purchase price will be calculated as 97% of the volume weighted average prices of the Company's common stock during normal trading hours for three consecutive trading days commencing on the purchase notice date. Concurrent with the signing of the First Tumim Purchase Agreement, the Company issued 155,703 shares of its common stock to Tumim as a commitment fee ("Commitment Shares"). The total fair value of the shares issued for the commitment fee of $2.6 million was recorded in selling, general, and administrative expense on the Company's consolidated statements of operations. During the nine months ended September 30, 2023, the Company sold 3,420,990 shares of common stock, for proceeds of $8.4 million, and terminated the First Tumim Purchase Agreement during the first quarter of 2023. During the nine months ended September 30, 2022, the Company sold 17,248,244 shares of common stock under the First Tumim Purchase Agreement for proceeds of $123.7 million . Second Purchase Agreement with Tumim On September 24, 2021, the Company entered into a second common stock purchase agreement (the "Second Tumim Purchase Agreement") and a registration rights agreement with Tumim, pursuant to which Tumim committed to purchase up to $300.0 million in shares of the Company's common stock, subject to certain limitations and conditions set forth in the Second Tumim Purchase Agreement. The Company will not issue or sell any shares of common stock under the Second Tumim Purchase Agreement which, when aggregated with all other shares of common stock beneficially owned by Tumim, would result in beneficial ownership of more than 4.99% of the Company's outstanding shares of common stock. Under the terms of the Second Tumim Purchase Agreement, the Company has the right, but not the obligation, to sell to Tumim, shares of common stock over the period commencing on the date of the Second Tumim Purchase Agreement (the “Second Tumim Closing Date”) and ending on the first day of the month following the 36-month anniversary of the Second Tumim Closing Date, provided that certain conditions have been met. These conditions include effectiveness of a registration statement covering the resale of shares of common stock that have been and may be issued under the Second Tumim Purchase Agreement and termination of the First Tumim Purchase Agreement. The registration statement covering the offer and sale of up to 29,042,827 shares of common stock, including the commitment shares, to Tumim was declared effective on November 29, 2021. The purchase price will be calculated as 97% of the volume weighted average prices of the Company's common stock during normal trading hours for three consecutive trading days commencing on the purchase notice date. Concurrent with the signing of the Second Tumim Purchase Agreement, the Company issued 252,040 shares of its common stock to Tumim as a commitment fee. The total fair value of the shares issued for the commitment fee of $2.9 million was recorded in selling, general, and administrative expense on the Company's consolidated statement of operations. During the nine months ended September 30, 2023, the Company sold 28,790,787 shares of common stock, for proceeds of $59.2 million, to Tumim under the Second Tumim Purchase Agreement , and terminated the Second Tumim Purchase Agreement during the third quarter of 2023 . Equity Distribution Agreement In August 2022, the Company entered into an equity distribution agreement with Citi as sales agent, pursuant to which the Company can issue and sell shares of its common stock with an aggregate maximum offering price of $400.0 million . In August 2023, the Company amended and restated the equity distribution agreement (as amended and restated, the "Equity Distribution Agreement") with Citi as a sales agent, pursuant to which the Company increased the aggregate maximum offering price by $200.0 million, resulting in an aggregate offering price of up to $600.0 million . The Company pays Citi a fixed commission rate of 2.5% of gross offering proceeds of shares sold under the Equity Distribution Agreement. During the three and nine months ended September 30, 2023, the Company sold 27,662,880 and 66,690,443 shares, respectively, of common stock under the Equity Distribution Agreement at an average price per share of $1.97 and $1.78, respectively, for gross proceeds of $54.5 million and $118.6 million, an d net proceeds of approximately $53.1 million and $115.6 million, after $1.4 million and $3.0 million in commissions to the sales agent. During the three and nine months ended September 30, 2022, the Company sold 19,009,227 shares of common stock under the Equity Distribution Agreement at an average price per share of $5.29 for gross proceeds of $100.5 million an d net proceeds of approximately $98.0 million, after $2.5 million in commissions to the sales agent. Commissions incurred in connection with the Equity Distribution Agreement are reflected as a reduction of additional paid-in capital on the Company's consolidated balance sheets. As of September 30, 2023 and December 31, 2022, $1.1 million and $1.7 million, respectively, in commissions were recognized in accrued expenses and other current liabilities on the Company's consolidated balance sheets. Public Offering The Company sold 29,910,715 shares of common stock in an underwritten public offering (the "Public Offering") at an offering price of $1.12 per share. The Public Offering closed on April 4, 2023, and the Company received net proceeds of $32.2 million after underwriter's discounts and offering costs. Direct Offering The Company entered into a stock purchase agreement with an investor (the "Investor") pursuant to which the investor agreed to purchase up to $100.0 million of shares of the Company's common stock in a registered direct offering (the "Direct Offering"), with the actual amount of shares of common stock purchased in the Direct Offering reduced to the extent of the total number of shares issued pursuant to the Public Offering. The Direct Offering closed on April 11, 2023, and the Company sold 59,374,999 shares of common stock at the Public Offering price of $1.12 per share to the Investor for net proceeds of $63.2 million, after deducting placement agent fees and offering expenses. |
STOCK BASED COMPENSATION EXPENS
STOCK BASED COMPENSATION EXPENSE | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION EXPENSE | STOCK BASED COMPENSATION EXPENSE 2017 and 2020 Stock Plans The 2017 Stock Option Plan (the “2017 Plan”) provides for the grant of incentive and nonqualified options to purchase common stock to officers, employees, directors, and consultants. Options were granted at a price not less than the fair market value on the date of grant and generally became exercisable between one On June 2, 2020, the stockholders approved the Nikola Corporation 2020 Stock Incentive Plan (the "2020 Plan") and the Nikola Corporation 2020 Employee Stock Purchase Plan (the "2020 ESPP"). The 2020 Plan provides for the grant of incentive and nonqualified stock options, restricted stock units ("RSUs"), restricted share awards, stock appreciation awards, and cash-based awards to employees, outside directors, and consultants of the Company. The 2020 Plan and the 2020 ESPP became effective immediately upon the closing of the Business Combination. No offerings have been authorized to date by the Company's board of directors under the ESPP. Stock Options The Company utilizes the Black-Scholes option pricing model for estimating the fair value of options granted. Options vest in accordance with the terms set forth in the grant letter. Time-based options generally vest ratably over a period of approximately 36 months. Changes in stock options are as follows: Options Weighted Weighted Average Outstanding at December 31, 2022 22,470,585 $ 1.31 5.33 Granted — — Exercised 6,723,629 1.06 Cancelled 588,508 2.24 Outstanding at September 30, 2023 15,158,448 3.86 Vested and exercisable as of September 30, 2023 15,158,448 $ 1.39 3.86 Restricted Stock Units The fair value of RSUs is based on the closing price of the Company’s common stock on the grant date. The time-based RSUs generally vest in increments over a three-year period or, in the case of executive officers, cliff-vest following the third anniversary from the date of grant. The RSUs to directors have a vesting cliff of one year after the grant date. Changes in RSUs are as follows: Number of RSUs Balance at December 31, 2022 19,574,800 Granted 11,631,426 Released 10,915,751 Cancelled 6,188,682 Balance at September 30, 2023 14,101,793 Market Based RSUs The Company's market based RSUs contained a stock price index as a benchmark for vesting. Through the second quarter of 2022, these awards were issued with three milestones that vest depending upon a consecutive 20-trading day stock price target of the Company’s common stock. The Company's stock price targets ranged from $25 to $55 per share. During the third quarter of 2022, the market based RSUs subject to the $40 and $55 stock price milestones were cancelled and the Company expensed $55.8 million related to the cancelled awards representing the remaining unamortized expense as of the cancellation date. During the second quarter of 2023, the market based RSUs subject to the $25 stock price milestone were cancelled and the Company expensed $6.8 million related to the cancelled awards representing the remaining unamortized expense as of the cancellation date. On April 24, 2023, the Company granted 2,900,000 performance-based RSUs to the Company's executive officers, which entitle them to receive a specified number of shares of the Company's common stock upon vesting. Additionally, during the third quarter of 2023, the Company granted 1,500,000 performance-based RSUs in connection with the appointment of new executive officers. The number of shares earned could range between 0% and 200% of the target award depending upon the Company's performance at the conclusion of the three-year performance period, ending December 31, 2025. The performance condition of the awards is based on total shareholder return ("TSR") of the Company's common stock relative to a broad group of green energy companies. The TSR performance condition is deemed a market condition. The fair value of the TSR awards on the grant date was determined using a Monte Carlo simulation model, which utilizes significant assumptions including stock volatility and risk free rates, and does not change throughout the vesting period. The grant date fair value of the TSR awards was determined to be $11.1 million and is recognized over the vesting period. The following represents the significant assumptions used to determine the grant date fair value for the TSR awards: During the three months ended September 30, 2023 During the three months ended June 30, 2023 Stock price $1.40 - $3.40 $0.82 Term (years) 2.30 - 2.40 2.70 Risk-free interest rate 4.8% - 5.0% 3.9% Expected volatility 116% - 127% 99.0% Expected dividend yield —% —% Changes in market based RSUs are as follows: Number of Market Based RSUs Balance at December 31, 2022 2,071,058 Granted 4,400,000 Released — Cancelled 3,571,058 Balance at September 30, 2023 2,900,000 Stock Compensation Expense The following table presents the impact of stock-based compensation expense on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenues $ 414 $ — $ 1,813 $ — Research and development 3,383 10,105 19,043 28,112 Selling, general, and administrative 14,862 92,740 48,060 183,102 Total stock-based compensation expense $ 18,659 $ 102,845 $ 68,916 $ 211,214 As of September 30, 2023, total unrecognized compensation expense was as follows: Unrecognized Compensation Expense Market based RSUs $ 8,331 RSUs 38,530 Total unrecognized compensation expense at September 30, 2023 $ 46,861 |
DECONSOLIDATION OF SUBSIDIARY
DECONSOLIDATION OF SUBSIDIARY | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DECONSOLIDATION OF SUBSIDIARY | DECONSOLIDATION OF SUBSIDIARY As discussed in Note 1, Basis of Presentation , on June 30, 2023, the Company transferred ownership of all of Romeo's right, title and interest in and to all of its tangible and intangible assets , subject to certain agreed upon exclusions, to the Assignee. The Company received no cash consideration related to the Assignment. The Company deconsolidated Romeo as of the Assignment as the Company no longer held a controlling financial interest in Romeo as of that date. The Company did not have any amounts included in accumulated other comprehensive loss associated with Romeo at the time of deconsolidation. The Assignment of Romeo represents a strategic shift and its results are reported as discontinued operations for the prior year periods presented. Following the Assignment, the Company retained no interest in Romeo, and Romeo is not deemed a related party. In connection with the deconsolidation, the Company recognized a loss from deconsolidation of subsidiaries of $24.9 million which is recorded in loss from deconsolidation of discontinued operations in the consolidated statements of operations for the nine months ended September 30, 2023 and consisted of the following: As of deconsolidation Assets deconsolidated: Cash and cash equivalents $ 213 Accounts receivable, net — Inventory 7,271 Prepaid expenses and other current assets 3,351 Restricted cash and cash equivalents, non-current 1,500 Property, plant and equipment, net 17,555 Intangible assets, net 656 Investments in affiliates 10,000 Other assets 23,364 Total assets deconsolidated $ 63,910 Liabilities deconsolidated: Accounts payable $ 15,583 Accrued expenses and other current liabilities 57,612 Debt and finance lease liabilities, current 1,206 Long-term debt and finance lease liabilities, net of current portion 1,160 Operating lease liabilities 21,664 Warrant liability 8 Other non-current liabilities — Total liabilities deconsolidated 97,233 Net liabilities derecognized from deconsolidation (33,323) Less: intercompany balances derecognized 54,084 Less: cash payments directly related to deconsolidation 2,724 Less: derecognition of goodwill 1,450 Loss from deconsolidation of discontinued operation $ 24,935 As of December 31, 2022, the assets and liabilities of Romeo subject to assignment for the benefit of creditors have been reflected as assets subject to assignment for the benefit of creditors and liabilities subject to assignment for the benefit of creditors on the Company's consolidated balance sheets and consisted of the following: December 31, 2022 Assets: Current assets Cash and cash equivalents $ 7,555 Accounts receivable, net 262 Inventory 11,327 Prepaid expenses and other current assets 9,881 Total current assets subject to assignment for the benefit of creditors 29,025 Non-current assets Restricted cash and cash equivalents, non-current 1,500 Property, plant and equipment, net 19,221 Intangible assets, net 621 Investments in affiliates 10,000 Prepayment - Long-term Supply Agreement 44,835 Other assets 23,948 Total non-current assets subject to assignment for the benefit of creditors 100,125 Total assets subject to assignment for the benefit of creditors $ 129,150 Liabilities: Current liabilities Accounts payable $ 24,672 Accrued expenses and other current liabilities 22,990 Debt and finance lease liabilities, current 1,440 Total current liabilities subject to assignment for the benefit of creditors 49,102 Long-term liabilities Long-term debt and finance lease liabilities, net of current portion 1,499 Operating lease liabilities 22,132 Warrant liability 40 Total long-term liabilities subject to assignment for the benefit of creditors 23,671 Total liabilities subject to assignment for the benefit of creditors $ 72,773 The following represents the major components of loss from discontinued operations presented in the consolidated statements of operations: For the nine months ended September 30, 2023 Revenues $ 1,665 Cost of revenues 12,926 Gross loss (11,261) Operating expenses: Research and development 5,673 Selling, general and administrative 14,937 Loss on supplier deposits 44,835 Total operating expenses 65,445 Loss from operations (76,706) Other income (expense), net Interest expense, net (53) Revaluation of warrant liability 33 Loss from discontinued operations $ (76,726) |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES To calculate the interim tax provision, at the end of each interim period the Company estimates the annual effective tax rate and applies that to its ordinary quarterly earnings. The effect of changes in the enacted tax laws or rates is recognized in the interim period in which the change occurs. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and judgments including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in foreign jurisdictions, permanent differences between book and tax amounts, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained, or the tax environment changes. Beginning in 2022, the Tax Cuts and Jobs Act ("TCJA") requires taxpayers to capitalize certain research and development costs and amortize them over five or fifteen years pursuant to Internal Revenue Code Section 174. Previously, such costs could be deducted in the period they were incurred. This provision is not anticipated to impact our effective tax rate or result in any cash payments for our federal income taxes. Income tax expense was immaterial for the three and nine months ended September 30, 2023 and 2022 due to cumulative tax losses. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is subject to legal and regulatory actions that arise from time to time. The assessment as to whether a loss is probable or reasonably possible, and as to whether such loss or a range of such loss is estimable, often involves significant judgment about future events, and the outcome of litigation is inherently uncertain. The Company expenses professional legal fees as incurred, which are included in selling, general, and administrative expense on the consolidated financial statements. Other than as described below, there is no material pending or threatened litigation against the Company that remains outstanding as of September 30, 2023. Regulatory and Governmental Investigations By order dated December 21, 2021, the Company and the SEC reached a settlement arising out of the SEC’s investigation of the Company related to a short-seller article published in September 2020. Under the terms of the settlement, without admitting or denying the SEC’s findings, the Company among other things, agreed to pay a $125 million civil penalty. The first $25 million installment was paid at the end of 2021 and the remaining installments to be paid semiannually through 2023. The Company previously reserved the full amount of the settlement in the quarter ended September 30, 2021, as disclosed in the Company’s quarterly report on Form 10-Q for such quarter, filed with the SEC on November 4, 2021. In July 2022, the Company and SEC agreed to an alternative payment plan with the first two payments of $5 million to be paid in July 2022 and December 2022. The July 2022 and December 2022 payments have been made by the Company. In February 2023, the Company and the SEC agreed to another alternative payment plan, with two payments of $1.5 million each to be paid in March 2023 and June 2023. The March 2023 and June 2023 payments have been made by the Company. In August 2023, the Company and the SEC agreed to an additional payment of $1.5 million to be paid in September 2023, which has been made by the Company. The remainder of the payment plan is subject to determination. As of September 30, 2023, the Company has reflected the remaining liability of $85.5 million in accrued expenses and other current liabilities on the consolidated balance sheets. The legal and other professional costs the Company incurred during the three and nine months ended September 30, 2023 in connection with legal work disclosed elsewhere in this Report include approximately zero and $0.2 million, respectively, expensed for Mr. Milton's attorneys' fees under his indemnification agreement with the Company. During the three and nine months ended September 30, 2022 the Company expensed $6.0 million and $25.5 million, respectively, for Mr. Milton's attorneys' fees under his indemnification agreement with the Company. As of September 30, 2023 and December 31, 2022, accrued expenses for legal and other professional costs for Mr. Milton's attorneys' fees under his indemnification agreement were immaterial. To the extent that these investigations and any resulting third-party claims yield adverse results over time, such results could jeopardize the Company's operations and exhaust its cash reserves, and could cause stockholders to lose their entire investment. The Company is currently seeking reimbursement from Mr. Milton for costs and damages arising from the actions that are the subject of the government and regulatory investigations. On October 20, 2023, an arbitration panel in New York, New York awarded the Company approximately $165 million plus interest in an arbitration proceeding against Mr. Milton. The Company intends to file with the arbitration panel an application to recover attorneys' fees related to the matter. The Company's ability to enforce the arbitration award and recover any judgment from the counterparty is not guaranteed and could result in no recovery. Shareholder Securities Litigation The Company and certain of its current and former officers and directors are defendants in a consolidated securities class action lawsuit pending in the United States District Court of the District of Arizona (the "Shareholder Securities Litigation"). On December 15, 2020, the United States District Court for the District of Arizona consolidated the actions under lead case Borteanu v. N ikola Corporation, et al., No. CV-20-01797-PXL-SPL, and appointed Angelo Baio as the “Lead Plaintiff”. On December 23, 2020, a motion for reconsideration of the Court’s order appointing the Lead Plaintiff was filed. On December 30, 2020, a petition for writ of mandamus seeking to vacate the District Court’s Lead Plaintiff order and directing the court to appoint another Lead Plaintiff was filed before the United States Court of Appeals for the Ninth Circuit, Case No. 20-73819. The motion for reconsideration was denied on February 18, 2021. On July 23, 2021, the Ninth Circuit granted in part the mandamus petition, vacated the district court’s December 15, 2020 order, and remanded the case to the District Court to reevaluate the appointment of a Lead Plaintiff. On November 18, 2021, the Court appointed Nikola Investor Group II as Lead Plaintiff. On January 24, 2022, Lead Plaintiffs filed the Consolidated Amended Class Action Complaint which asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 promulgated thereunder, based on allegedly false and/or misleading statements and omissions in press releases, public filings, and in social media regarding the Company's business plan and prospects. In accordance with the Court’s scheduling order, Defendants filed their motions to dismiss on April 8, 2022. On May 9, 2022, Plaintiffs filed their opposition to Defendants' motions to dismiss, and on June 8, 2022, Defendants filed their reply briefs. On February 2, 2023, the court issued a ruling granting the Defendants' motions to dismiss, without prejudice. As a result, Plaintiffs' complaint was dismissed in its entirety, with leave to amend by April 3, 2023. On April 3, 2023, Plaintiff's filed the Second Consolidated Amended Class Action Complaint. In accordance with the Court’s scheduling order, Defendants filed their motions to dismiss the Second Consolidated Amended Class Action Complaint on May 15, 2023. On June 14, 2023, Plaintiffs filed their oppositions to Defendants’ motions to dismiss, and on June 29, 2023, Defendants filed their reply briefs. The Court has not yet ruled on the motions. Plaintiffs seek an unspecified amount in damages, attorneys’ fees, and other relief. The Company intends to vigorously defend itself. The Company is unable to estimate the potential loss or range of loss, if any, associated with these lawsuits, which could be material. Derivative Litigation Beginning on September 23, 2020, two purported shareholder derivative actions were filed in the United States District Court for the District of Delaware ( Byun v. Milton, et al. , Case No. 1:20-cv-01277-UNA; Salguocar v. Girsky et. al., Case No. 1:20-cv-01404-UNA), purportedly on behalf of the Company, against certain of the Company's current and former directors alleging breaches of fiduciary duties, violations of Section 14(a) of the Exchange Act, and gross mismanagement. The Byun action also brings claims for unjust enrichment and abuse of control, while the Salguocar action brings a claim for waste of corporate assets. On October 19, 2020, the Byun action was stayed until 30 days after the earlier of (a) the Shareholder Securities Litigation being dismissed in their entirety with prejudice; (b) defendants filing an answer to any complaint in the Shareholder Securities Litigation; or (c) a joint request by plaintiff and defendants to lift the stay. On November 17, 2020, the Byun and Salguocar actions were consolidated as In re Nikola Corporation Derivative Litigation, Lead Case No. 20-cv-01277-CFC. In its order consolidating the actions, the Court applied the Byun stay to the consolidated action. On January 31, 2023, plaintiffs filed an amended complaint. The consolidated action remains stayed. On December 18, 2020, a purported shareholder derivative action was filed in the United States District Court for the District of Arizona, Huhn v. Milton et al., Case No. 2:20-cv-02437-DWL, purportedly on behalf of the Company, against certain of the Company’s current and former directors alleging breaches of fiduciary duties, violations of Section 14(a) of the Exchange Act, unjust enrichment, and against defendant Jeff Ubben, a member of the Company’s board of directors, insider selling and misappropriation of information. On January 26, 2021, the Huhn action was stayed until 30 days after the earlier of (a) the Shareholder Securities Litigation being dismissed in its entirety with prejudice; (b) defendants filing an answer to any complaint in the Shareholder Securities Litigation; or (c) a joint request by plaintiff and defendants to lift the stay. The Huhn action remains stayed. On January 7, 2022, Barbara Rhodes, a purported stockholder of the Company, filed her Verified Stockholder Derivative Complaint in Delaware Chancery Court captioned Rhodes v. Milton, et al. and Nikola Corp. , C.A. No. 2022-0023-KSJM (the “Rhodes Action”). On January 10, 2022, Zachary BeHage and Benjamin Rowe, purported stockholders of the Company, filed their Verified Shareholder Derivative Complaint in Delaware Chancery Court captioned BeHage v. Milton, et al. and Nikola Corp. , C.A. No. 2022-0045-KSJM (the “BeHage Rowe Action”). These actions are against certain of the Company’s current and former directors and allege breach of fiduciary duties, insider selling under Brophy , aiding and abetting insider selling, aiding and abetting breach of fiduciary duties, unjust enrichment, and waste of corporate assets. On February 1, 2022, the Court consolidated the Rhodes Action and the BeHage Rowe Action as In re Nikola Corporation Derivative Litigation , C.A. No. 2022-0023-KJSM (the "Consolidated Chancery Action"). The Consolidated Chancery Action was stayed through February 2, 2022 on a combination of joint stipulations and court orders. Plaintiffs then filed a second amended complaint on February 14, 2023 (the “Second Amended Complaint”). On March 10, 2022, Michelle Brown and Crisanto Gomes, purported stockholders of the Company, filed their Verified Shareholder Derivative Complaint in Delaware Chancery Court captioned Brown v. Milton, et al. and Nikola Corp. , C.A. No. 2022-0223-KSJM (the “Brown & Gomes Action”). The Brown & Gomes Action likewise alleges claims against certain of the Company’s current and former directors for purported breaches of fiduciary duty and unjust enrichment. On January 12, 2023, the parties entered into a stipulation consolidating the Brown & Gomes Action in the Consolidated Chancery Derivative Action. On May 3, 2023, each of the current and former director defendants moved to partially dismiss the Second Amended Complaint. Briefing concluded on August 25, 2023, and oral argument is scheduled for December 8, 2023. In addition, on March 8, 2021, the Company received a demand letter from a law firm representing a purported stockholder of the Company alleging facts and claims substantially the same as many of the facts and claims in the filed derivative shareholder lawsuit. The demand letter requests that the board of directors (i) undertake an independent internal investigation into certain board members and management’s purported violations of Delaware and/or federal law; and (ii) commence a civil action against those members of the board and management for alleged fiduciary breaches. In April 2021, the board of directors formed a demand review committee, consisting of independent directors Bruce L. Smith and Mary L. Petrovich, to review such demands and provide input to the Company and retained independent counsel. Upon completion of the independent internal investigation by the demand review committee, it was recommended that the board take no action in response to the demand letter at this time. The independent counsel for the demand review committee provided an update to counsel for the stockholder who sent the demand letter. There can be no assurance as to whether any litigation will be commenced by or against the Company by the purported shareholder with respect to the claims set forth in the demand letter, or whether any such litigation could be material. Additionally, on December 23, 2022, the Company received another demand letter from a law firm representing purported stockholder of the Company, Ed Lomont, alleging facts and claims substantially the same as many of the facts and claims in the filed derivative shareholder lawsuits. The demand letter requested that the board’s demand review committee (i) undertake an independent internal investigation into certain board members and management’s purported violations of Delaware and/or federal law; and (ii) commence a civil action against those members of the board and management for alleged fiduciary breaches. In February 2023, the board of directors reengaged the demand review committee, consisting of independent directors Bruce L. Smith, and Mary L. Petrovich, to review such demands and provide input to the Company and retained independent counsel. On September 6, 2023, Lomont filed a Verified Stockholder Derivative Complaint in Delaware Chancery Court captioned Lomont v. Milton, et al.. , C.A. No. 2023-0908-KSJM (the “Lomont Action”) against certain of the Company’s current and former directors, alleging claims against those defendants for purported breaches of fiduciary duty, unjust enrichment, and contribution and indemnification. The Lomont Action alleges that the Company constructively and wrongfully refused Lomont’s demand that the Company bring claims against officers and directors. The parties have not yet entered into a schedule for the Lomont Action. The complaints seek unspecified monetary damages, costs and fees associated with bringing the actions, and reform of the Company's corporate governance, risk management and operating practices. The Company is vigorously defending against the foregoing complaints. The Company is unable to estimate the potential loss or range of loss, if any, associated with these lawsuits, which could be material. Tenneson Action On October 13, 2023, John Tenneson filed a purported securities class action in the United States District Court for the District of Arizona, captioned Tenneson v. Nikola et al., Case No. 2:23-cv-02131-DJH (the “Tenneson Action”). The Tenneson Action asserts claims against the Company and certain officers and directors asserts under Sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5 promulgated thereunder, based on allegedly false and/or misleading statements and omissions in press releases, public filings, and in social media regarding the Company’s safety and structural controls related to its manufacturing of battery components and the likelihood of a product recall. Plaintiff seeks an unspecified amount in damages, attorneys’ fees, and other relief. The Company intends to vigorously defend itself. The Company is unable to estimate the potential loss or range of loss, if any, associated with the Tenneson Action, which could be material. Lion Electric matter On March 2, 2023, Lion Electric filed a complaint against Nikola in Arizona federal district court alleging that Nikola tortiously interfered with the Romeo Power, Inc. / Lion Electric business relationship and Lion’s business expectancy from the commercial relationship. Nikola denies the allegations and intends to vigorously defend the matter. Based upon information presently known to management, the Company is not currently able to estimate the outcome of this proceeding or a possible range of loss, if any. Lightning eMotors matter On March 9, 2023, Lighting eMotors filed a complaint in Colorado State Court alleging that Nikola tortiously interfered with the Romeo Power, Inc. / Lightning eMotors business relationship and Lightning’s business expectancy. Nikola denies the allegations and intends to vigorously defend the matter. Based upon information presently known to management, the Company is not currently able to estimate the outcome of this proceeding or a possible range of loss, if any. Commitments and Contingencies FCPM License In the third quarter of 2021, the Company entered into a FCPM license to intellectual property that will be used to adapt, further develop and assemble FCPMs. Payments for the license will be due in installments ranging from 2022 to 2025. As of September 30, 2023 and December 31, 2022, the Company accrued $13.2 million and $32.1 million, respectively, in accrued expenses and other current liabilities and $5.3 million and zero, respectively, in other long-term liabilities on the consolidated balance sheets. Inventory Repurchase Agreements During the first quarter of 2023, the Company entered into an arrangement with a finance company to provide floor plan financing to its dealers (the "Floor Plan"). The Company receives payment from the finance company following shipment of trucks to the dealers, and the Company participates in the cost of dealer financing up to certain limits. In conjunction with the Floor Plan, the Company entered into an inventory repurchase agreement (the "Inventory Repurchase Agreement") with the finance company, whereby the Company has agreed to repurchase trucks re-possessed by the financing company in the event of a dealer default, at the financing company's option. As of September 30, 2023, the maximum potential cash payments the Company could be required to make under the terms of the Inventory Repurchase Agreement was $11.9 million. The Company's financial exposure under the Inventory Repurchase Agreement is limited to the difference between the amount paid to the financing company and the amount received upon subsequent resale of the re-possessed truck. As of September 30, 2023, the Company had not repurchased any trucks under the terms of the Inventory Repurchase Agreement, nor received any requests for repurchase. BEV Recall Campaign On August 11, 2023, the Company announced a voluntary recall of approximately 209 BEV trucks, as a result of the preliminary results of the Company’s battery pack thermal event investigations. The incident was deemed likely caused by a defect within components of the supplier battery pack. The Company has ceased investigations of the thermal event and has determined that replacement of the battery pack in all BEV trucks is the safest, most cost effective remedy. All BEV trucks are being transported to the Company's Coolidge manufacturing facility to be retrofit with alternative battery packs. Amounts accrued for the recall campaign are based on management’s best estimates of the amounts that will ultimately be required to settle such items. The Company can provide no assurances that it will not experience material claims in the future or that it will not incur significant costs to defend or settle such claims beyond the amounts accrued. The Company accrued $61.8 million during the third quarter of 2023 related to the recall campaign. Purchase Commitments |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The following table sets forth the computation of the basic and diluted net loss per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss from continuing operations $ (425,764) $ (236,234) $ (711,025) $ (562,172) Net loss from discontinued operations — — (101,661) — Net loss $ (425,764) $ (236,234) $ (812,686) $ (562,172) Denominator: Weighted average shares outstanding, basic and diluted 857,213,992 438,416,393 706,325,212 426,382,736 Net loss per share, basic and diluted: Net loss from continuing operations $ (0.50) $ (0.54) $ (1.01) $ (1.32) Net loss from discontinued operations $ — $ — $ (0.14) $ — Net loss $ (0.50) $ (0.54) $ (1.15) $ (1.32) Basic net loss per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period. Diluted net loss per share is computed by dividing the net loss, adjusted for the revaluation of warrant liability for the private warrants, by the weighted average number of common shares outstanding for the period, adjusted for the dilutive effect of shares of common stock equivalents resulting from the assumed exercise of the warrants. The treasury stock method was used to calculate the potential dilutive effect of these common stock equivalents. There were no adjustments for revaluations of the warrant liability as the warrants outstanding are anti-dilutive for all periods presented. Potentially dilutive shares were excluded from the computation of diluted net loss when their effect was antidilutive. The following outstanding common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Toggle Convertible Notes (on an as-converted basis) 20,803,462 22,872,040 20,803,462 22,872,040 Senior Convertible Notes (on an as-converted basis) 21,232,749 — 21,232,749 — Outstanding warrants 841,183 760,915 841,183 760,915 Stock options, including performance stock options 15,158,448 27,385,088 15,158,448 27,385,088 Restricted stock units, including market based RSUs 17,001,793 23,911,805 17,001,793 23,911,805 Total 75,037,635 74,929,848 75,037,635 74,929,848 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Conversion of Senior Convertible Notes The Company issued 30,231,974 shares of common stock for settlement of conversions of $34.0 million aggregate principal amount of the Second Purchase Agreement Notes and make-whole interest pursuant to the Second Purchase Agreement. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss | $ (425,764) | $ (236,234) | $ (812,686) | $ (562,172) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
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 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). The unaudited financial information reflects, in the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial position, results of operations and cash flows for the periods indicated. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as amended. |
Consolidation | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated.Certain prior period balances have been reclassified to conform to the current period presentation in the consolidated financial statements and the accompanying notes. |
Cash, Cash Equivalents and Restricted Cash and Cash Equivalents | Cash, Cash Equivalents and Restricted Cash and Cash EquivalentsThe Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. Additionally, the Company considers investments in money market funds to be cash equivalents. As of September 30, 2023 and December 31, 2022, the Company had $362.9 million and $225.9 million of cash and cash equivalents, respectively. Cash equivalents included $14.3 million and zero of highly liquid investments as of September 30, 2023 and December 31, 2022, respectively.As of September 30, 2023 and December 31, 2022, the Company had $29.3 million and $88.1 million, respectively, in current and non-current restricted cash. Restricted cash represents cash that is restricted as to withdrawal or usage and primarily consists of securitization of the Company's letters of credit, leases, and debt. |
Revenue Recognition | Revenue Recognition Truck sales Truck sales consist of revenue recognized on the sales of the Company's trucks. The sale of a truck is generally recognized as a single performance obligation at the point in time when control is transferred to the customer (dealers). Control is deemed transferred when the product is picked up by the carrier and the customer (dealer) can direct the product's use and obtain substantially all of the remaining benefits from the product. The Company may offer certain after-market upgrades at the request of the dealers. If a contract contains more than one distinct performance obligation, the transaction price is allocated to each performance obligation based on the standalone selling price of each performance obligation. The Company does not offer returns on truck sales. The Company may be required to repurchase dealer inventory in the event a dealer agreement is terminated. Revenue is recognized based on the transaction price, which is measured as the amount of consideration that the Company expects to receive in exchange for transferring the product pursuant to the terms of the contract with its customer. The transaction price may be adjusted, if applicable, for variable consideration, such as customer rebates and financing costs on floor plan arrangements, which requires the Company to make estimates for the portion of these allowances that have yet to be credited to customers. Payments for trucks sold are made in accordance with the Company's customary payment terms. The Company has elected an accounting policy whereby the Company does not adjust the promised amount of consideration for the effects of a significant financing component because, at contract inception, the Company expects the period between the time when the Company transfers a promised good or service to the customer and the time when the customer pays for that good or service will be one year or less. Sales tax collected from customers is not considered revenue and is accrued until remitted to the taxing authorities. Shipping and handling activities occur after the customer has obtained control of the product, thus the Company has elected to account for those expenses as fulfillment costs in cost of revenues, rather than an additional promised service. Services and other Services and other revenues primarily consists of sales of charging products, service parts, after-market parts, and hydrogen. Sales are generally recognized as a single performance obligation at the point in time when control is transferred to the customer. Control is deemed transferred when the product is delivered to the customer and the customer can direct the product's use and obtain substantially all of the remaining benefits from the asset. The Company does not offer sales returns on products. Payment for products sold are made in accordance with the Company's customary payment terms and the Company's contracts do not have significant financing components. The Company has elected to exclude sales taxes from the measurement of the transaction price. |
Product Warranties and Recall Campaigns | Product warranty costs are recognized upon transfer of control of trucks to dealers, and are estimated based on factors including the length of the warranty, product costs, supplier warranties, and product failure rates. Warranty reserves are reviewed and adjusted quarterly to ensure that accruals are adequate to meet expected future warranty obligations. Initial warranty data is limited early in the launch of a new product and accordingly, future adjustments to the warranty accrual may be material. Recall campaign costs are recognized when a product recall liability is probable and related amounts are reasonably estimable. Costs are estimated based on the number of trucks to be repaired and the required repairs including engineering and development, product costs, labor rates, and shipping. Estimating the cost to repair the trucks is highly subjective and requires significant management judgment. Based on information that is currently available, management believes that the accruals are adequate. It is possible that substantial additional charges may be required in future periods based on new information, changes in facts and circumstances, and actions the Company may commit to or be required to undertake. |
Recent Accounting Pronouncements | Recently issued accounting pronouncements not yet adopted In October 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-06 to clarify or improve disclosure and presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the FASB accounting standard codification with the SEC's regulations. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated statements. |
Inventory | Inventory cost is computed using standard cost, which approximates actual cost on a first-in, first-out basis. Inventories are stated at the lower of cost or net realizable value. Inventories are written down for any excess or obsolescence and when net realizable value, which is based upon estimated selling prices, is in excess of carrying value. Once inventory is written-down, a new, lower cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in the restoration of or increase in that newly established cost basis. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The reconciliation of cash and cash equivalents and restricted cash and cash equivalents to amounts presented in the consolidated statements of cash flows are as follows: As of September 30, 2023 December 31, 2022 September 30, 2022 Cash and cash equivalents $ 362,850 $ 225,850 $ 315,731 Restricted cash and cash equivalents – current 1,224 10,600 600 Restricted cash and cash equivalents – non-current 28,026 77,459 87,459 Cash, cash equivalents and restricted cash and cash equivalents $ 392,100 $ 313,909 $ 403,790 |
Schedule of Restrictions on Cash and Cash Equivalents | The reconciliation of cash and cash equivalents and restricted cash and cash equivalents to amounts presented in the consolidated statements of cash flows are as follows: As of September 30, 2023 December 31, 2022 September 30, 2022 Cash and cash equivalents $ 362,850 $ 225,850 $ 315,731 Restricted cash and cash equivalents – current 1,224 10,600 600 Restricted cash and cash equivalents – non-current 28,026 77,459 87,459 Cash, cash equivalents and restricted cash and cash equivalents $ 392,100 $ 313,909 $ 403,790 |
Schedule of Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of the Company’s financial instruments are as follows: As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents – money market $ 14,339 $ — $ — $ 14,339 Derivative asset — — 124 124 Liabilities Warrant liability $ — $ — $ 65 $ 65 Senior Convertible Notes — — 32,381 32,381 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Derivative asset $ — $ — $ 170 $ 170 Liabilities Warrant liability $ — $ — $ 380 $ 380 Senior Convertible Notes — — 50,000 50,000 |
Schedule of Carrying Value and Fair Value of Financial Instruments | The carrying value and fair value of the Company’s financial instruments are as follows: As of September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents – money market $ 14,339 $ — $ — $ 14,339 Derivative asset — — 124 124 Liabilities Warrant liability $ — $ — $ 65 $ 65 Senior Convertible Notes — — 32,381 32,381 As of December 31, 2022 Level 1 Level 2 Level 3 Total Assets Derivative asset $ — $ — $ 170 $ 170 Liabilities Warrant liability $ — $ — $ 380 $ 380 Senior Convertible Notes — — 50,000 50,000 |
Schedule of Changes in Fair Value of Assets | The change in fair value of the derivative asset was as follows: Three months Ended Nine Months Ended September 30, 2022 September 30, 2022 Estimated fair value - beginning of period $ 800 $ — Recognition of derivative asset — 1,500 Change in fair value (300) (1,000) Estimated fair value - end of period $ 500 $ 500 During the three and nine months ended September 30, 2023, the change in fair value of the contingent stock consideration was as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Fair value - beginning of the period $ 28,428 $ — Contingent stock consideration recognized on Divestiture Closing — 25,956 Change in fair value 41,509 43,981 Delivery of shares for stock consideration (69,937) (69,937) Fair value - end of the period $ — $ — |
Schedule of Changes in Fair Value of Liabilities | During the three and nine months ended September 30, 2023, the change in fair value of the derivative liabilities was as follows: Three months Ended Nine Months Ended September 30, 2023 September 30, 2023 Estimated fair value - beginning of period $ 29,340 $ — Recognition of derivative liability — 21,180 Change in estimated fair value 212,511 220,671 Reclassification to equity (241,851) (241,851) Estimated fair value - end of period $ — $ — Three Months Ended Nine Months Ended September 30, 2022 September 30, 2022 Estimated fair value - beginning of the period $ 6,588 $ 4,189 Change in estimated fair value — 2,399 Settlement of second price differential (6,588) (6,588) Estimated fair value - end of the period $ — $ — Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Liability classified awards - beginning of the period $ 2,006 $ — Reclassification of share-based payment awards to liability 8,395 10,401 Change in fair value 10,591 10,591 Reclassification of share-based payment awards to equity (20,992) (20,992) Liability classified awards - end of the period $ — $ — |
Schedule of Inputs and Assumptions Used | The following reflects the ranges of inputs and assumptions used: For the three months ended September 30, 2023 For the three months ended June 30, 2023 Stock price $1.09 - $3.40 $1.09 - $1.38 Conversion price $1.46 - $1.48 $1.46 Risk free rate 3.76% - 4.58% 3.76% - 4.49% Equity volatility 47.50% - 60% 60% - 70% Expected dividend yield —% —% Credit spread 14.9% - 20.1% 16.4% - 17.2% |
Schedule of Change in Warrant Liabilities | The change in warranty liability for the three and nine months ended September 30, 2023 and 2022 is summarized as follows: Three Months Ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Accrued warranty - beginning of period $ 11,057 $ 2,203 $ 7,788 $ — Warranties issued in period - product warranty 172 2,611 4,245 4,601 Warranties issued in period - recall campaign 61,848 — 61,848 — Net changes in liability for pre-existing warranties (1,084) (213) (1,304) — Warranty costs incurred (1,665) (200) (2,249) (200) Accrued warranty - end of period $ 70,328 $ 4,401 $ 70,328 $ 4,401 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration for the Acquisition | Total consideration for the acquisition of Romeo is summarized as follows: Purchase consideration Fair value of Nikola common stock issued to Romeo stockholders (1) $ 67,535 Settlement of pre-existing relationships in the form of loan forgiveness (2) 27,923 Settlement of pre-existing relationships in the form of accounts payable (18,216) Fair value of outstanding stock compensation awards attributable to pre-acquisition services (3) 1,345 Total purchase consideration $ 78,587 (1) Represents the acquisition date fair value of 22.1 million shares of Nikola common stock issued to Romeo stockholders, based on the Romeo Exchange Ratio, at the October 14, 2022 closing price of $3.06 per share. (2) The Company entered into an Agreement and Plan of Merger and Reorganization dated July 30, 2022 (the "Merger Agreement") with Romeo. Concurrently wi th the execution of the Merger Agreement, Romeo entered into a loan agreement (the "Loan Agreement") with the Company as the lender. The Loan Agreement provided for a facility in an aggregate principal amount of up to $30.0 million (subject to certain incremental increases of up to $20.0 million), which were available for drawing subject to certain terms and conditions set forth in the Loan Agreement. Interest was payable on borrowings under the facility at the secured overnight financing rate ("SOFR") plus 8.00%. Upon closing, the loan and related accrued interest were forgiven and considered part of the purchase price. As of acquisition close, Romeo had drawn $12.5 million on the loan and accrued $0.1 million in interest. Additionally, as part of the Loan Agreement entered into with Romeo, the Company agreed to a short-term battery price increase. Through the acquisition close, the Company recorded $15.3 million in prepaid expenses and other current assets on the consolidated balance sheets related to the incremental pack price increase, which was considered part of the purchase consideration upon close. (3) Represents the portion of the fair value of the replacement awards related to services provided prior to the acquisition. The remaining portion of the fair value is associated with future service and will be recognized as expense over the future service period. |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory consisted of the following at September 30, 2023 and December 31, 2022, respectively: As of September 30, 2023 December 31, 2022 Raw materials $ 18,707 $ 52,442 Work in process 22,120 9,646 Finished goods 10,437 47,677 Service parts 5,694 2,105 Total inventory $ 56,958 $ 111,870 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following at September 30, 2023 and December 31, 2022, respectively: As of September 30, 2023 December 31, 2022 Inventory deposits $ 14,810 $ 415 Prepaid expenses 7,941 5,333 Non-trade receivables 5,827 6,064 Prepaid insurance premiums 3,409 3,611 Headquarters sale agreement receivable 2,600 5,487 Deposits 2,052 3,917 Prepaid software 1,879 1,015 Deferred implementation costs 460 2,101 Total prepaid expenses and other current assets $ 38,978 $ 27,943 |
Schedule of Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following at September 30, 2023 and December 31, 2022: As of September 30, 2023 December 31, 2022 Construction-in-progress $ 217,899 $ 209,187 Buildings 162,795 127,797 Equipment 49,535 35,257 Tooling 38,833 17,693 Finance lease assets 14,887 2,193 Software 8,617 8,568 Land 7,957 24,762 Other 3,683 3,501 Leasehold improvements 3,082 2,953 Furniture and fixtures 1,483 1,492 Demo vehicles — 15,215 Property, plant and equipment, gross 508,771 448,618 Less: accumulated depreciation and amortization (38,920) (30,833) Total property, plant and equipment, net $ 469,851 $ 417,785 |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following at September 30, 2023 and December 31, 2022: As of September 30, 2023 December 31, 2022 SEC settlement $ 85,500 $ 90,000 Warranty liability, current 61,953 1,484 Accrued purchase of intangible asset 13,216 32,126 Inventory received not yet invoiced 12,696 18,167 Accrued outsourced engineering services 7,845 8,056 Accrued legal expenses 6,618 2,041 Accrued payroll and payroll related expenses 5,797 8,298 Other accrued expenses 4,264 2,152 Accrued purchases of property, plant and equipment 3,718 3,587 Operating lease liabilities, current 2,434 1,979 Accrued Equity Distribution Agreement fees 1,114 1,681 Supply agreement revision commitment — 10,000 Total accrued expenses and other current liabilities $ 205,155 $ 179,571 |
INVESTMENTS IN AFFILIATES (Tabl
INVESTMENTS IN AFFILIATES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Affiliates | Investments in unconsolidated affiliates accounted for under the equity method consisted of the following: As of Ownership as of September 30, 2023 September 30, 2023 December 31, 2022 Nikola Iveco Europe GmbH — % $ — $ 4,142 Wabash Valley Resources LLC 20 % 57,193 57,674 Nikola - TA HRS 1, LLC 50 % 1,000 1,000 $ 58,193 $ 62,816 Equity in net loss of affiliates on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Equity in net loss of affiliates: Nikola Iveco Europe GmbH $ — $ (1,959) $ (15,556) $ (5,998) Wabash Valley Resources LLC (262) (25) (731) (76) Total equity in net loss of affiliates $ (262) $ (1,984) $ (16,287) $ (6,074) |
Schedule of Divestiture of Affiliates | During the nine months ended September 30, 2023, the Company recognized a gain of $70.8 million in gain on divestiture of affiliates consisting of the following: Nine Months Ended September 30, 2023 Cash consideration received $ 35,000 Contingent stock consideration receivable 25,956 Derecognition of investment in affiliate 11,428 Derecognition of cumulative currency translation losses (1,535) Gain on divestiture of affiliate $ 70,849 |
Schedule of Changes in Fair Value of Assets | The change in fair value of the derivative asset was as follows: Three months Ended Nine Months Ended September 30, 2022 September 30, 2022 Estimated fair value - beginning of period $ 800 $ — Recognition of derivative asset — 1,500 Change in fair value (300) (1,000) Estimated fair value - end of period $ 500 $ 500 During the three and nine months ended September 30, 2023, the change in fair value of the contingent stock consideration was as follows: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Fair value - beginning of the period $ 28,428 $ — Contingent stock consideration recognized on Divestiture Closing — 25,956 Change in fair value 41,509 43,981 Delivery of shares for stock consideration (69,937) (69,937) Fair value - end of the period $ — $ — |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Separately Identifiable Assets | The gross carrying amount and accumulated amortization of separately identifiable intangible assets are as follows: As of September 30, 2023 Gross Carrying Accumulated Net Carrying Licenses: S-WAY Product and Platform license $ 50,000 $ 10,714 $ 39,286 FCPM license 47,181 — 47,181 Other intangibles 1,650 405 1,245 Total intangible assets $ 98,831 $ 11,119 $ 87,712 As of December 31, 2022 Gross Carrying Accumulated Net Carrying Licenses: S-WAY Product and Platform license $ 50,000 $ 5,357 $ 44,643 FCPM license 47,181 — 47,181 Other intangibles 800 151 649 Total intangible assets $ 97,981 $ 5,508 $ 92,473 |
DEBT AND FINANCE LEASE LIABIL_2
DEBT AND FINANCE LEASE LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Finance Lease Liabilities | A summary of debt and finance lease liabilities as of September 30, 2023 and December 31, 2022, were as follows: As of September 30, 2023 December 31, 2022 Current: Senior Convertible Notes $ 32,381 $ 50,000 Insurance premium financing 3,673 1,999 Finance lease liabilities 2,370 367 Promissory notes 686 9,309 Financing obligations 67 — Debt and finance lease liabilities, current $ 39,177 $ 61,675 As of September 30, 2023 December 31, 2022 Non-current: Toggle Convertible Notes $ 119,291 $ 199,786 Financing obligations 101,233 50,359 Promissory notes 2,501 39,165 Finance lease liabilities 9,346 818 Long-term debt and finance lease liabilities, net of current portion $ 232,371 $ 290,128 |
Schedule of Carrying Values and Estimated Fair Values | The fair values of the following debt obligations are estimated using level 2 fair value inputs, including stock price and risk-free rates. The following table presents the carrying value and estimated fair values: As of September 30, 2023 Carrying Value Fair Value June 2022 Toggle Convertible Notes $ 111,003 $ 93,788 June 2023 Toggle Convertible Notes 8,288 13,220 Second Collateralized Note 3,187 3,086 Insurance Premium financing 2,372 2,370 September 2023 Insurance Premium financing 1,224 1,220 |
Schedule of Interest Rates, Net Carrying Amounts of Debt Component and Interest Expense | The interest rates and payment dates for each of the Toggle Convertible Notes is summarized below: June 2022 Toggle Convertible Notes April 2023 Toggle Convertible Notes June 2023 Toggle Convertible Notes PIK interest rate (per annum) 11.00% 11.00% 8.00% Cash interest rate (per annum) 8.00% 8.00% 8.00% Semi-annual interest payable dates May 31 and November 30 of each year May 31 and November 30 of each year June 30 and December 31 of each year First interest payment date November 30, 2022 May 31, 2023 December 31, 2023 The net carrying amounts of the debt component of the Toggle Convertible Notes as of September 30, 2023 were as follows: June 2022 Toggle Convertible Notes June 2023 Toggle Convertible Notes Principal amount $ 117,041 $ 11,000 Accrued PIK interest 4,327 237 Unamortized discount (2,502) (2,949) Unamortized issuance costs (7,863) — Net carrying amount $ 111,003 $ 8,288 The net carrying amounts of the debt component of the Toggle Convertible Notes as of December 31, 2022 were as follows: June 2022 Toggle Convertible Notes Principal amount $ 210,939 Accrued PIK interest 1,998 Unamortized discount (6,443) Unamortized issuance costs (6,708) Net carrying amount $ 199,786 The following table presents the Company's interest expense related to the June 2022 Toggle Convertible Notes: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Contractual interest expense $ 3,219 $ 5,500 $ 12,464 $ 7,284 Amortization of debt discount and issuance costs 785 922 2,520 1,228 Total interest expense $ 4,004 $ 6,422 $ 14,984 $ 8,512 The following table presents the Company's interest expense related to the April 2023 Toggle Convertible Notes: Three Months Ended Nine Months Ended September 30, 2023 September 30, 2023 Contractual interest expense $ 1,096 $ 3,562 Amortization of debt discount and issuance costs 41,530 42,242 Total interest expense $ 42,626 $ 45,804 |
Schedule of Reference Price And Floor Price Applicable to Issuance of Senior Convertible Notes | The Reference Price and Floor Price applicable to each issuance of First Purchase Agreement Notes is summarized below: Reference Price Floor Price Series A Notes $ 5.975 $ 0.478 Series B-1 Notes $ 4.050 $ 0.478 Series B-2 Notes $ 2.140 $ 0.478 Series B-3 Notes $ 1.952 $ 0.478 The following table summarizes conversions of the First Purchase Agreement Notes during the nine months ended September 30, 2023: Series A Notes Series B-1 Notes Series B-2 Notes Series B-3 Notes Shares of common stock issued for conversions 21,785,618 21,127,720 21,758,268 22,639,159 Principal balance converted $ 50,000 $ 25,000 $ 15,000 $ 12,075 Make-whole interest converted $ 2,500 $ 1,250 $ 750 $ 604 Average conversion price $ 2.41 $ 1.24 $ 0.72 $ 0.56 Reference Price Floor Price Series A-1 Notes $ 2.940 $ 0.380 Series A-2 Notes $ 2.940 $ 0.380 The following table summarizes conversions of the Second Purchase Agreement Notes during the three and nine months ended September 30, 2023: Series A-1 Notes Series A-2 Notes Shares of common stock issued for conversions 128,380,608 5,721,018 Principal balance converted $ 125,000 $ 7,619 Make-whole interest converted $ 6,250 $ 381 Average conversion price $ 1.02 $ 1.40 |
STOCK BASED COMPENSATION EXPE_2
STOCK BASED COMPENSATION EXPENSE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Changes in Stock Options | Changes in stock options are as follows: Options Weighted Weighted Average Outstanding at December 31, 2022 22,470,585 $ 1.31 5.33 Granted — — Exercised 6,723,629 1.06 Cancelled 588,508 2.24 Outstanding at September 30, 2023 15,158,448 3.86 Vested and exercisable as of September 30, 2023 15,158,448 $ 1.39 3.86 |
Schedule of Changes in RSU's, Market Based RSU's, and Unrecognized Compensation Expenses | Changes in RSUs are as follows: Number of RSUs Balance at December 31, 2022 19,574,800 Granted 11,631,426 Released 10,915,751 Cancelled 6,188,682 Balance at September 30, 2023 14,101,793 During the three months ended September 30, 2023 During the three months ended June 30, 2023 Stock price $1.40 - $3.40 $0.82 Term (years) 2.30 - 2.40 2.70 Risk-free interest rate 4.8% - 5.0% 3.9% Expected volatility 116% - 127% 99.0% Expected dividend yield —% —% Changes in market based RSUs are as follows: Number of Market Based RSUs Balance at December 31, 2022 2,071,058 Granted 4,400,000 Released — Cancelled 3,571,058 Balance at September 30, 2023 2,900,000 As of September 30, 2023, total unrecognized compensation expense was as follows: Unrecognized Compensation Expense Market based RSUs $ 8,331 RSUs 38,530 Total unrecognized compensation expense at September 30, 2023 $ 46,861 |
Schedule of Impact of Stock-Based Compensation Expense | The following table presents the impact of stock-based compensation expense on the consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Cost of revenues $ 414 $ — $ 1,813 $ — Research and development 3,383 10,105 19,043 28,112 Selling, general, and administrative 14,862 92,740 48,060 183,102 Total stock-based compensation expense $ 18,659 $ 102,845 $ 68,916 $ 211,214 |
DECONSOLIDATION OF SUBSIDIARY (
DECONSOLIDATION OF SUBSIDIARY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of the Assets and Liabilities to Assignment for the Benefit of Creditors of Loss on Deconsolidation of Subsidiaries and Components of Loss From Discontinued Operations | In connection with the deconsolidation, the Company recognized a loss from deconsolidation of subsidiaries of $24.9 million which is recorded in loss from deconsolidation of discontinued operations in the consolidated statements of operations for the nine months ended September 30, 2023 and consisted of the following: As of deconsolidation Assets deconsolidated: Cash and cash equivalents $ 213 Accounts receivable, net — Inventory 7,271 Prepaid expenses and other current assets 3,351 Restricted cash and cash equivalents, non-current 1,500 Property, plant and equipment, net 17,555 Intangible assets, net 656 Investments in affiliates 10,000 Other assets 23,364 Total assets deconsolidated $ 63,910 Liabilities deconsolidated: Accounts payable $ 15,583 Accrued expenses and other current liabilities 57,612 Debt and finance lease liabilities, current 1,206 Long-term debt and finance lease liabilities, net of current portion 1,160 Operating lease liabilities 21,664 Warrant liability 8 Other non-current liabilities — Total liabilities deconsolidated 97,233 Net liabilities derecognized from deconsolidation (33,323) Less: intercompany balances derecognized 54,084 Less: cash payments directly related to deconsolidation 2,724 Less: derecognition of goodwill 1,450 Loss from deconsolidation of discontinued operation $ 24,935 As of December 31, 2022, the assets and liabilities of Romeo subject to assignment for the benefit of creditors have been reflected as assets subject to assignment for the benefit of creditors and liabilities subject to assignment for the benefit of creditors on the Company's consolidated balance sheets and consisted of the following: December 31, 2022 Assets: Current assets Cash and cash equivalents $ 7,555 Accounts receivable, net 262 Inventory 11,327 Prepaid expenses and other current assets 9,881 Total current assets subject to assignment for the benefit of creditors 29,025 Non-current assets Restricted cash and cash equivalents, non-current 1,500 Property, plant and equipment, net 19,221 Intangible assets, net 621 Investments in affiliates 10,000 Prepayment - Long-term Supply Agreement 44,835 Other assets 23,948 Total non-current assets subject to assignment for the benefit of creditors 100,125 Total assets subject to assignment for the benefit of creditors $ 129,150 Liabilities: Current liabilities Accounts payable $ 24,672 Accrued expenses and other current liabilities 22,990 Debt and finance lease liabilities, current 1,440 Total current liabilities subject to assignment for the benefit of creditors 49,102 Long-term liabilities Long-term debt and finance lease liabilities, net of current portion 1,499 Operating lease liabilities 22,132 Warrant liability 40 Total long-term liabilities subject to assignment for the benefit of creditors 23,671 Total liabilities subject to assignment for the benefit of creditors $ 72,773 The following represents the major components of loss from discontinued operations presented in the consolidated statements of operations: For the nine months ended September 30, 2023 Revenues $ 1,665 Cost of revenues 12,926 Gross loss (11,261) Operating expenses: Research and development 5,673 Selling, general and administrative 14,937 Loss on supplier deposits 44,835 Total operating expenses 65,445 Loss from operations (76,706) Other income (expense), net Interest expense, net (53) Revaluation of warrant liability 33 Loss from discontinued operations $ (76,726) |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of the Basic and Diluted Net Loss Per Share | The following table sets forth the computation of the basic and diluted net loss per share for the three and nine months ended September 30, 2023 and 2022: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Numerator: Net loss from continuing operations $ (425,764) $ (236,234) $ (711,025) $ (562,172) Net loss from discontinued operations — — (101,661) — Net loss $ (425,764) $ (236,234) $ (812,686) $ (562,172) Denominator: Weighted average shares outstanding, basic and diluted 857,213,992 438,416,393 706,325,212 426,382,736 Net loss per share, basic and diluted: Net loss from continuing operations $ (0.50) $ (0.54) $ (1.01) $ (1.32) Net loss from discontinued operations $ — $ — $ (0.14) $ — Net loss $ (0.50) $ (0.54) $ (1.15) $ (1.32) |
Schedule of Common Stock Equivalents were Excluded from the Computation of Diluted Net Loss Per Share | The following outstanding common stock equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Toggle Convertible Notes (on an as-converted basis) 20,803,462 22,872,040 20,803,462 22,872,040 Senior Convertible Notes (on an as-converted basis) 21,232,749 — 21,232,749 — Outstanding warrants 841,183 760,915 841,183 760,915 Stock options, including performance stock options 15,158,448 27,385,088 15,158,448 27,385,088 Restricted stock units, including market based RSUs 17,001,793 23,911,805 17,001,793 23,911,805 Total 75,037,635 74,929,848 75,037,635 74,929,848 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Thousands | Oct. 14, 2022 USD ($) |
Romeo Power, Inc | |
Business Acquisition [Line Items] | |
Total purchase price | $ 78,587 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Aug. 11, 2023 truck | Jun. 30, 2022 USD ($) day $ / shares | Sep. 30, 2023 USD ($) truck | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Apr. 11, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Cash and cash equivalents | $ 362,850,000 | $ 315,731,000 | $ 362,850,000 | $ 315,731,000 | $ 225,850,000 | ||||
Cash equivalent | 14,300,000 | 14,300,000 | 0 | ||||||
Current and non-current restricted cash | $ 29,300,000 | 29,300,000 | 88,100,000 | ||||||
Embedded conversion features as a derivative liability | $ 21,200,000 | ||||||||
Number of BEV trucks voluntary recall | truck | 209 | 209 | |||||||
Warranties issued in period - recall campaign | $ 61,848,000 | 0 | 61,848,000 | 0 | |||||
Warranty liability, current | 61,953,000 | 61,953,000 | 1,484,000 | ||||||
Warranty liability, noncurrent | 8,400,000 | 8,400,000 | 6,300,000 | ||||||
Embedded Derivative Financial Instruments | |||||||||
Debt Instrument [Line Items] | |||||||||
Notional amount | $ 9,000,000 | ||||||||
Remaining term | 30 months | ||||||||
Trigger price (in dollars per share) | $ / shares | $ 20 | ||||||||
Trading days during consecutive trading day period | day | 20 | ||||||||
Period of consecutive trading days | day | 40 | ||||||||
Price Differential | Derivative Liability | |||||||||
Debt Instrument [Line Items] | |||||||||
Settlement of second price differential | $ 6,588,000 | $ 6,588,000 | |||||||
June 2022 Toggle Convertible Notes | Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 200,000,000 | 117,041,000 | 117,041,000 | 100,000,000 | $ 210,939,000 | ||||
Interest rate, stated percentage | 8% | ||||||||
Paid-in-kind interest rate | 11% | ||||||||
April 2023 Toggle Convertible Notes | Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 100,000,000 | ||||||||
Interest rate, stated percentage | 8% | 8% | |||||||
Paid-in-kind interest rate | 11% | 11% | |||||||
June 2023 Toggle Convertible Notes | Convertible Notes Payable | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount | $ 11,000,000 | $ 11,000,000 | $ 11,000,000 | ||||||
Interest rate, stated percentage | 8% | ||||||||
Paid-in-kind interest rate | 8% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 362,850 | $ 225,850 | $ 315,731 | |
Restricted cash and cash equivalents – current | 1,224 | 10,600 | 600 | |
Restricted cash and cash equivalents – non-current | 28,026 | 77,459 | 87,459 | |
Cash, cash equivalents and restricted cash and cash equivalents | $ 392,100 | $ 313,909 | $ 403,790 | $ 522,241 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Derivative asset | $ 124 | $ 170 |
Liabilities | ||
Warrant liability | 65 | 380 |
Senior Convertible Notes | 32,381 | 50,000 |
Money Market | ||
Assets | ||
Cash equivalents – money market | 14,339 | |
Level 1 | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities | ||
Warrant liability | 0 | 0 |
Senior Convertible Notes | 0 | 0 |
Level 1 | Money Market | ||
Assets | ||
Cash equivalents – money market | 14,339 | |
Level 2 | ||
Assets | ||
Derivative asset | 0 | 0 |
Liabilities | ||
Warrant liability | 0 | 0 |
Senior Convertible Notes | 0 | 0 |
Level 2 | Money Market | ||
Assets | ||
Cash equivalents – money market | 0 | |
Level 3 | ||
Assets | ||
Derivative asset | 124 | 170 |
Liabilities | ||
Warrant liability | 65 | 380 |
Senior Convertible Notes | 32,381 | $ 50,000 |
Level 3 | Money Market | ||
Assets | ||
Cash equivalents – money market | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Change in fair value of derivative liability | ||||
Reclassification to equity | $ (20,992) | $ (20,992) | ||
Embedded Derivative Financial Instruments | Derivative Liability | ||||
Change in fair value of derivative liability | ||||
Estimated fair value - beginning of period | 29,340 | 0 | ||
Recognition of derivative liability | 0 | 21,180 | ||
Change in estimated fair value | 212,511 | 220,671 | ||
Reclassification to equity | (241,851) | (241,851) | ||
Estimated fair value - end of period | $ 0 | $ 0 | ||
Embedded Derivative Financial Instruments | Derivative Asset | ||||
Change in fair value of the derivative asset | ||||
Estimated fair value - beginning of period | $ 800 | $ 0 | ||
Recognition of derivative asset | 0 | 1,500 | ||
Change in fair value | (300) | (1,000) | ||
Estimated fair value - end of period | 500 | 500 | ||
Price Differential | Derivative Liability | ||||
Change in fair value of derivative liability | ||||
Estimated fair value - beginning of period | 6,588 | 4,189 | ||
Change in estimated fair value | 0 | 2,399 | ||
Settlement of second price differential | (6,588) | (6,588) | ||
Estimated fair value - end of period | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inputs and Assumptions (Details) | Sep. 30, 2023 $ / shares | Jun. 30, 2023 $ / shares |
Stock price | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 1.09 | 1.09 |
Stock price | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 3.40 | 1.38 |
Conversion price | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 1.46 | |
Conversion price | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 1.48 | 1.46 |
Risk free rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0.0376 | 0.0376 |
Risk free rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0.0458 | 0.0449 |
Equity volatility | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0.4750 | 0.60 |
Equity volatility | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0.60 | 0.70 |
Expected dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0 | 0 |
Credit spread | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0.149 | 0.164 |
Credit spread | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative liability | 0.201 | 0.172 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Fair Value of Liability Classified Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Estimated fair value - beginning of period | $ 2,006 | $ 0 |
Reclassification of share-based payment awards to liability | 8,395 | 10,401 |
Change in fair value | 10,591 | (10,591) |
Reclassification of share-based payment awards to equity | (20,992) | (20,992) |
Estimated fair value - end of period | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Warranty Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Accrued warranty - beginning of period | $ 11,057 | $ 2,203 | $ 7,788 | $ 0 |
Warranties issued in period - product warranty | 172 | 2,611 | 4,245 | 4,601 |
Warranties issued in period - recall campaign | 61,848 | 0 | 61,848 | 0 |
Net changes in liability for pre-existing warranties | (1,084) | (213) | (1,304) | 0 |
Warranty costs incurred | (1,665) | (200) | (2,249) | (200) |
Accrued warranty - end of period | $ 70,328 | $ 4,401 | $ 70,328 | $ 4,401 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 14, 2022 | Sep. 30, 2023 | Dec. 31, 2022 |
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Goodwill | $ 5,238 | $ 6,688 | |
Romeo Power, Inc | |||
Subsidiary, Sale of Stock [Line Items] | |||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | ||
Shares transferred per share of stock acquired (in shares) | 0.1186 | ||
Goodwill | $ 1,500 |
BUSINESS COMBINATION - Schedule
BUSINESS COMBINATION - Schedule of Consideration for the Acquisition of Romeo (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 9 Months Ended | |||
Oct. 14, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||
Proceeds from insurance premium financing | $ 5,223 | $ 6,637 | ||
Prepaid expenses and other current assets | $ 38,978 | $ 27,943 | ||
Romeo Power, Inc | ||||
Business Acquisition [Line Items] | ||||
Fair value of Nikola common stock issued to Romeo stockholders | $ 67,535 | |||
Settlement of pre-existing relationships in the form of loan forgiveness | 27,923 | |||
Settlement of pre-existing relationships in the form of accounts payable | (18,216) | |||
Fair value of outstanding stock compensation awards attributable to pre-acquisition services | 1,345 | |||
Total purchase consideration | $ 78,587 | |||
Issued or issuable, number of shares (in shares) | 22.1 | |||
Price per share of common stock acquired (in dollars per share) | $ 3.06 | |||
Prepaid expenses and other current assets | $ 15,300 | |||
Nikola Corporation | Senior Loans | Romeo Power, Inc | ||||
Business Acquisition [Line Items] | ||||
Principal amount | 30,000 | |||
Incremental increase | 20,000 | |||
Proceeds from insurance premium financing | 12,500 | |||
Interest receivable | $ 100 | |||
Nikola Corporation | Senior Loans | Secured Overnight Financing Rate (SOFR) | Romeo Power, Inc | ||||
Business Acquisition [Line Items] | ||||
Basis spread on variable rate | 8% |
BALANCE SHEET COMPONENTS - Inve
BALANCE SHEET COMPONENTS - Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 18,707 | $ 52,442 |
Work in process | 22,120 | 9,646 |
Finished goods | 10,437 | 47,677 |
Service parts | 5,694 | 2,105 |
Inventory | $ 56,958 | $ 111,870 |
BALANCE SHEET COMPONENTS - Prep
BALANCE SHEET COMPONENTS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Inventory deposits | $ 14,810 | $ 415 |
Prepaid expenses | 7,941 | 5,333 |
Non-trade receivables | 5,827 | 6,064 |
Prepaid insurance premiums | 3,409 | 3,611 |
Headquarters sale agreement receivable | 2,600 | 5,487 |
Deposits | 2,052 | 3,917 |
Prepaid software | 1,879 | 1,015 |
Deferred implementation costs | 460 | 2,101 |
Prepaid expenses and other current assets | $ 38,978 | $ 27,943 |
BALANCE SHEET COMPONENTS - Narr
BALANCE SHEET COMPONENTS - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Amortization of deferred implementation costs | $ 0 | $ 1.2 | $ 0 | $ 2.4 | |
Depreciation | 15.1 | $ 3.9 | 23.9 | $ 10.5 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Property, Plant and Equipment [Line Items] | |||||
Holdback From sale of subsidiary | 3.7 | 3.7 | |||
Holdback From sale of subsidiary, current | 1.2 | 1.2 | |||
Holdback From sale of subsidiary, noncurrent | 2.5 | $ 2.5 | |||
Phoenix Hydrogen Hub Project | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Property, Plant and Equipment [Line Items] | |||||
Net proceeds | $ 20.7 | ||||
Percentage of Subsidiary Divested | 100% |
BALANCE SHEET COMPONENTS - Prop
BALANCE SHEET COMPONENTS - Property, Plant and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Finance lease assets | $ 14,887 | $ 2,193 |
Property, plant and equipment, gross | 508,771 | 448,618 |
Less: accumulated depreciation and amortization | (38,920) | (30,833) |
Total property, plant and equipment, net | 469,851 | 417,785 |
Construction-in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 217,899 | 209,187 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 162,795 | 127,797 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 49,535 | 35,257 |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 38,833 | 17,693 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 8,617 | 8,568 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 7,957 | 24,762 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 3,683 | 3,501 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 3,082 | 2,953 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | 1,483 | 1,492 |
Demo vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross except finance lease assets | $ 0 | $ 15,215 |
BALANCE SHEET COMPONENTS - Accr
BALANCE SHEET COMPONENTS - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
SEC settlement | $ 85,500 | $ 90,000 |
Warranty liability, current | 61,953 | 1,484 |
Accrued purchase of intangible asset | 13,216 | 32,126 |
Inventory received not yet invoiced | 12,696 | 18,167 |
Accrued outsourced engineering services | 7,845 | 8,056 |
Accrued legal expenses | 6,618 | 2,041 |
Accrued payroll and payroll related expenses | 5,797 | 8,298 |
Other accrued expenses | 4,264 | 2,152 |
Accrued purchases of property, plant and equipment | 3,718 | 3,587 |
Operating lease liabilities, current | 2,434 | 1,979 |
Accrued Equity Distribution Agreement fees | 1,114 | 1,681 |
Supply agreement revision commitment | 0 | 10,000 |
Total accrued expenses and other current liabilities | $ 205,155 | $ 179,571 |
INVESTMENTS IN AFFILIATES - Equ
INVESTMENTS IN AFFILIATES - Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 22, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Investment in affiliates | $ 58,193 | $ 58,193 | $ 62,816 | |||
Equity in net loss of affiliates | $ (262) | $ (1,984) | $ (16,287) | $ (6,074) | ||
Nikola Iveco Europe GmbH | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership | 0% | 0% | ||||
Investment in affiliates | $ 0 | $ 0 | 4,142 | |||
Equity in net loss of affiliates | $ 0 | (1,959) | $ (15,556) | (5,998) | ||
Wabash Valley Resources LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership | 20% | 20% | 20% | |||
Investment in affiliates | $ 57,193 | $ 57,193 | 57,674 | |||
Equity in net loss of affiliates | $ (262) | $ (25) | $ (731) | $ (76) | ||
Nikola - TA HRS 1, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership | 50% | 50% | ||||
Investment in affiliates | $ 1,000 | $ 1,000 | $ 1,000 |
INVESTMENTS IN AFFILIATES - Nar
INVESTMENTS IN AFFILIATES - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Jun. 29, 2023 | Jun. 22, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Apr. 04, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||||||
Gain on divestiture of affiliate | $ 0 | $ 0 | $ 70,849 | $ 0 | ||||
Investments in affiliates | $ 250 | $ 23,027 | ||||||
Price per share (in dollars per share) | $ 1.12 | |||||||
Wabash Valley Resources LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership | 20% | 20% | 20% | |||||
Investments in affiliates | $ 25,000 | |||||||
Common stock issued for investment in affiliates (in shares) | 1,682,367 | |||||||
Price per share (in dollars per share) | $ 14.86 | |||||||
Basis difference | $ 55,500 | |||||||
Maximum exposure to loss | $ 57,700 | $ 57,700 | ||||||
Book value equity interest and loans | $ 500 | $ 500 | ||||||
Nikola - TA HRS 1, LLC | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Ownership | 50% | 50% | ||||||
Nikola - TA HRS 1, LLC | Variable Interest Entity, Not Primary Beneficiary | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Payments to acquire joint venture | $ 1,000 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Nikola Iveco Europe GmbH | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Equity interest divested | 50% | |||||||
Consideration received | $ 35,000 | $ 35,000 | ||||||
Investment in affiliates | 11,400 | |||||||
Derecognition of cumulative currency translation losses | $ (1,500) | (1,535) | ||||||
Gain on divestiture of affiliate | $ 70,849 | |||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Nikola Iveco Europe GmbH | Common Stock | ||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||
Shares received (in shares) | 20,600,000 |
INVESTMENTS IN AFFILIATES - Div
INVESTMENTS IN AFFILIATES - Divestiture of Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 29, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||||
Gain on divestiture of affiliate | $ 0 | $ 0 | $ 70,849 | $ 0 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Nikola Iveco Europe GmbH | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash consideration received | $ 35,000 | 35,000 | |||
Contingent stock consideration receivable | 25,956 | ||||
Derecognition of investment in affiliate | 11,428 | ||||
Derecognition of cumulative currency translation losses | $ (1,500) | (1,535) | |||
Gain on divestiture of affiliate | $ 70,849 |
INVESTMENTS IN AFFILIATES - Cha
INVESTMENTS IN AFFILIATES - Changes in Fair Value of the Contingent Stock Consideration (Details) - Contingent Stock Consideration Receivable - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Estimated fair value - beginning of period | $ 28,428 | $ 0 |
Contingent stock consideration recognized on Divestiture Closing | 0 | 25,956 |
Change in fair value | 41,509 | 43,981 |
Delivery of shares for stock consideration | (69,937) | (69,937) |
Estimated fair value - end of period | $ 0 | $ 0 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ 11,119 | $ 5,508 |
Gross Carrying Amount | 98,831 | 97,981 |
Net Carrying Amount | 87,712 | 92,473 |
Licenses: | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,181 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 47,181 | |
S-WAY Product and Platform license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 50,000 | 50,000 |
Accumulated Amortization | 10,714 | 5,357 |
Net Carrying Amount | 39,286 | 44,643 |
FCPM license | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,181 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 47,181 | |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,650 | 800 |
Accumulated Amortization | 405 | 151 |
Net Carrying Amount | $ 1,245 | $ 649 |
INTANGIBLE ASSETS, NET - Narrat
INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 1.9 | $ 1.7 | $ 5.6 | $ 3.6 |
DEBT AND FINANCE LEASE LIABIL_3
DEBT AND FINANCE LEASE LIABILITIES - Debt and Finance Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current: | ||
Finance lease liabilities | $ 2,370 | $ 367 |
Debt and finance lease liabilities, current | 39,177 | 61,675 |
Non-current: | ||
Finance lease liabilities | 9,346 | 818 |
Long-term debt and finance lease liabilities, net of current portion | 232,371 | 290,128 |
Notes Payable | ||
Non-current: | ||
Long-term debt | 2,501 | 39,165 |
Financing obligations | ||
Current: | ||
Current maturities of long-term debt | 67 | 0 |
Non-current: | ||
Long-term debt | 101,233 | 50,359 |
Senior Convertible Notes | Convertible Notes Payable | ||
Current: | ||
Current maturities of long-term debt | 32,381 | 50,000 |
Insurance premium financing | Notes Payable | ||
Current: | ||
Current maturities of long-term debt | 3,673 | 1,999 |
Promissory notes | Notes Payable | ||
Current: | ||
Current maturities of long-term debt | 686 | 9,309 |
Toggle Convertible Notes | Convertible Notes Payable | ||
Non-current: | ||
Long-term debt | $ 119,291 | $ 199,786 |
DEBT AND FINANCE LEASE LIABIL_4
DEBT AND FINANCE LEASE LIABILITIES - Carrying Value and Estimated Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Convertible Notes Payable | June 2022 Toggle Convertible Notes | ||
Debt Instrument [Line Items] | ||
Carrying Value | $ 111,003 | $ 199,786 |
Fair Value | 93,788 | |
Convertible Notes Payable | June 2023 Toggle Convertible Notes | ||
Debt Instrument [Line Items] | ||
Carrying Value | 8,288 | |
Fair Value | 13,220 | |
Notes Payable | Second Collateralized Note | ||
Debt Instrument [Line Items] | ||
Carrying Value | 3,187 | |
Fair Value | 3,086 | |
Notes Payable | Insurance premium financing | ||
Debt Instrument [Line Items] | ||
Carrying Value | 2,372 | |
Fair Value | 2,370 | |
Notes Payable | September 2023 Insurance Premium financing | ||
Debt Instrument [Line Items] | ||
Carrying Value | 1,224 | |
Fair Value | $ 1,220 |
DEBT AND FINANCE LEASE LIABIL_5
DEBT AND FINANCE LEASE LIABILITIES - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 17 Months Ended | ||||||||||||||||||||
Aug. 21, 2023 USD ($) shares | Aug. 04, 2023 shares | Jun. 29, 2023 USD ($) | Apr. 11, 2023 USD ($) $ / shares | Dec. 30, 2022 USD ($) day | Aug. 04, 2022 USD ($) | Jun. 07, 2022 USD ($) | Jun. 01, 2022 day $ / shares | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) day shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) shares | Sep. 22, 2023 USD ($) | Aug. 03, 2023 shares | Aug. 02, 2023 shares | May 25, 2023 USD ($) | May 10, 2023 USD ($) | Mar. 17, 2023 USD ($) | Dec. 31, 2022 USD ($) shares | Jun. 30, 2022 USD ($) | May 10, 2022 USD ($) extension_option | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Common stock, shares authorized (in shares) | shares | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | 800,000,000 | 800,000,000 | ||||||||||||||||||
Loss on debt extinguishment | $ 0 | $ 0 | $ 20,362 | $ 0 | ||||||||||||||||||||
Term of contract | 99 years | 20 years | ||||||||||||||||||||||
Number of options to extend | extension_option | 4 | |||||||||||||||||||||||
Renewal term | 7 years | |||||||||||||||||||||||
Number of extension options reasonably certain of being exercised | extension_option | 1 | |||||||||||||||||||||||
Headquarters sale agreement receivable | 2,600 | 2,600 | $ 2,600 | $ 5,487 | ||||||||||||||||||||
Number of anniversary | 50 years | |||||||||||||||||||||||
Percentage of increase in repurchase amount of asset on basis of purchase price | 300% | |||||||||||||||||||||||
Repayments of debt | 45,287 | 28,125 | ||||||||||||||||||||||
Letter of Credit | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Maximum borrowing capacity | 1,200 | 600 | 1,200 | 600 | 1,200 | |||||||||||||||||||
Standby Letters of Credit | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Maximum borrowing capacity | $ 12,500 | $ 25,000 | ||||||||||||||||||||||
Reduced amount of letter of credit | 13,100 | 13,100 | 13,100 | $ 15,000 | ||||||||||||||||||||
Coolidge, AZ Land | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Consideration received | $ 50,400 | |||||||||||||||||||||||
Land, Buildings and Improvements | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Consideration received | $ 52,500 | |||||||||||||||||||||||
Asset under Construction | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Contingent consideration asset | 13,100 | |||||||||||||||||||||||
Toggle Convertible Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Secured debt limit per restrictive covenants | 500,000 | |||||||||||||||||||||||
First Purchase Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Convertible notes payable | 50,000 | |||||||||||||||||||||||
Second Purchase Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Convertible notes payable | 32,400 | $ 32,400 | 32,400 | |||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Convertible notes redemption day | day | 26 | |||||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | Maximum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price | 130% | |||||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | Minimum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price | 100% | |||||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | Conversion Circumstance One | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Threshold trading days | day | 20 | |||||||||||||||||||||||
Threshold consecutive trading days | day | 30 | |||||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | Conversion Circumstance One | Maximum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Threshold of stock price trigger (in percent) | 130% | |||||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | Conversion Circumstance Two | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Trading days require during a period of consecutive trading days | day | 5 | |||||||||||||||||||||||
Period of consecutive trading days | day | 10 | 10 | ||||||||||||||||||||||
Convertible Notes Payable | Toggle Convertible Notes | Conversion Circumstance Two | Minimum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Threshold of stock price trigger (in percent) | 98% | |||||||||||||||||||||||
Convertible Notes Payable | June 2022 Toggle Convertible Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 100,000 | $ 117,041 | $ 117,041 | $ 117,041 | 210,939 | $ 200,000 | ||||||||||||||||||
Conversion ratio | 0.1143602 | |||||||||||||||||||||||
Average conversion price (in dollars per share) | $ / shares | $ 8.74 | |||||||||||||||||||||||
Proceeds from debt, net of issuance costs paid and accrued | $ 183,200 | |||||||||||||||||||||||
Effective interest rate percentage | 13.90% | 13.90% | 13.90% | |||||||||||||||||||||
Interest expense | $ 4,004 | 6,422 | $ 14,984 | 8,512 | ||||||||||||||||||||
Interest rate, stated percentage | 8% | |||||||||||||||||||||||
Unamortized issuance costs | 7,863 | 7,863 | $ 7,863 | $ 6,708 | ||||||||||||||||||||
Convertible Notes Payable | April 2023 Toggle Convertible Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 100,000 | |||||||||||||||||||||||
Conversion ratio | 0.6868132 | |||||||||||||||||||||||
Average conversion price (in dollars per share) | $ / shares | $ 1.46 | |||||||||||||||||||||||
Derivative liability | $ 21,200 | |||||||||||||||||||||||
Number of shares issued in debt conversion (in shares) | shares | 72,458,789 | |||||||||||||||||||||||
Interest expense | 42,626 | 45,804 | ||||||||||||||||||||||
Interest rate, stated percentage | 8% | 8% | ||||||||||||||||||||||
Convertible Notes Payable | June 2023 Toggle Convertible Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 11,000 | $ 11,000 | $ 11,000 | $ 11,000 | ||||||||||||||||||||
Conversion ratio | 0.6744258 | |||||||||||||||||||||||
Effective interest rate percentage | 8% | 8% | 8% | |||||||||||||||||||||
Interest expense | $ 0 | $ 0 | ||||||||||||||||||||||
Interest rate, stated percentage | 8% | |||||||||||||||||||||||
Unamortized issuance costs | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||
Convertible Notes Payable | First Purchase Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 12,100 | $ 15,000 | $ 25,000 | |||||||||||||||||||||
Conversion ratio | 1 | |||||||||||||||||||||||
Threshold trading days | day | 3 | |||||||||||||||||||||||
Redemption price | 115% | |||||||||||||||||||||||
Maximum principal amount of convertible notes | $ 125,000 | |||||||||||||||||||||||
Interest rate, stated percentage | 5% | |||||||||||||||||||||||
Interest rate in the event of default | 12.50% | |||||||||||||||||||||||
Percentage of volume weighted average price | 95% | |||||||||||||||||||||||
Maximum equity interest allowed | 4.99% | |||||||||||||||||||||||
Maximum equity interest allowed after notice | 9.99% | |||||||||||||||||||||||
Number of days notice required | day | 61 | |||||||||||||||||||||||
Convertible Notes Payable | Series A Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 50,000 | |||||||||||||||||||||||
Number of shares issued in debt conversion (in shares) | shares | 21,785,618 | |||||||||||||||||||||||
Convertible Notes Payable | First Purchase Agreement - Subsequent Placement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Redemption price | 100% | |||||||||||||||||||||||
Debt instrument, term | 1 year | |||||||||||||||||||||||
Convertible Notes Payable | Second Purchase Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 160,000 | |||||||||||||||||||||||
Conversion ratio | 1 | |||||||||||||||||||||||
Number of shares issued in debt conversion (in shares) | shares | 171,179,577 | |||||||||||||||||||||||
Maximum principal amount of convertible notes | $ 325,000 | |||||||||||||||||||||||
Exercisable anniversary period | 18 months | |||||||||||||||||||||||
Interest rate, stated percentage | 5% | |||||||||||||||||||||||
Interest rate in the event of default | 12.50% | |||||||||||||||||||||||
Convertible Notes Payable | Series A-1 Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 125,000 | |||||||||||||||||||||||
Number of shares issued in debt conversion (in shares) | shares | 128,380,608 | 128,380,608 | ||||||||||||||||||||||
Convertible Notes Payable | Series A-2 Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 40,000 | |||||||||||||||||||||||
Number of shares issued in debt conversion (in shares) | shares | 5,721,018 | 5,721,018 | ||||||||||||||||||||||
Convertible Notes Payable | Second Purchase Agreement - Subsequent Placement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Debt instrument, term | 1 year | |||||||||||||||||||||||
Financing obligations | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | 38,300 | |||||||||||||||||||||||
Interest expense | $ 900 | 900 | $ 2,700 | 1,400 | ||||||||||||||||||||
Unamortized issuance costs | $ 1,100 | |||||||||||||||||||||||
Proceeds from debt, net of discount and issuance costs | 13,100 | |||||||||||||||||||||||
Headquarters sale agreement receivable | 2,600 | 2,600 | 2,600 | |||||||||||||||||||||
Financing obligations | Coolidge Sale Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | 49,400 | |||||||||||||||||||||||
Interest expense | 1,300 | 1,300 | ||||||||||||||||||||||
Unamortized issuance costs | $ 1,000 | |||||||||||||||||||||||
Notes Payable | Collateralized Promissory Notes | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 50,000 | |||||||||||||||||||||||
Interest expense | 200 | $ 500 | 1,100 | $ 700 | ||||||||||||||||||||
Interest rate, stated percentage | 4.26% | |||||||||||||||||||||||
Debt instrument, term | 60 months | |||||||||||||||||||||||
Repayments of debt | 39,300 | |||||||||||||||||||||||
Notes Payable | Second Collateralized Note | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 4,000 | |||||||||||||||||||||||
Interest rate, stated percentage | 7% | |||||||||||||||||||||||
Debt instrument, term | 60 months | |||||||||||||||||||||||
Notes Payable | Insurance premium financing | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 6,600 | $ 6,600 | $ 6,600 | |||||||||||||||||||||
Interest rate, stated percentage | 2.95% | 2.95% | 2.95% | |||||||||||||||||||||
Notes Payable | Additional Insurance Premium Financing Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Principal amount | $ 3,900 | $ 1,200 | $ 1,200 | $ 1,200 | ||||||||||||||||||||
Interest rate, stated percentage | 6.64% |
DEBT AND FINANCE LEASE LIABIL_6
DEBT AND FINANCE LEASE LIABILITIES - Interest Rates and Payment Dates of Convertible Notes (Details) - Convertible Notes Payable | Jun. 30, 2023 | Apr. 11, 2023 | Jun. 30, 2022 |
June 2022 Toggle Convertible Notes | |||
Debt Instrument [Line Items] | |||
PIK interest rate (per annum) | 11% | ||
Cash interest rate (per annum) | 8% | ||
April 2023 Toggle Convertible Notes | |||
Debt Instrument [Line Items] | |||
PIK interest rate (per annum) | 11% | 11% | |
Cash interest rate (per annum) | 8% | 8% | |
June 2023 Toggle Convertible Notes | |||
Debt Instrument [Line Items] | |||
PIK interest rate (per annum) | 8% | ||
Cash interest rate (per annum) | 8% |
DEBT AND FINANCE LEASE LIABIL_7
DEBT AND FINANCE LEASE LIABILITIES - Net Carrying Amounts of Debt (Details) - Convertible Notes Payable - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Apr. 11, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
June 2022 Toggle Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 117,041 | $ 100,000 | $ 210,939 | $ 200,000 | |
Accrued PIK interest | 4,327 | 1,998 | |||
Unamortized discount | (2,502) | (6,443) | |||
Unamortized issuance costs | (7,863) | (6,708) | |||
Net carrying amount | 111,003 | $ 199,786 | |||
June 2023 Toggle Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | 11,000 | $ 11,000 | |||
Accrued PIK interest | 237 | ||||
Unamortized discount | (2,949) | ||||
Unamortized issuance costs | 0 | ||||
Net carrying amount | $ 8,288 |
DEBT AND FINANCE LEASE LIABIL_8
DEBT AND FINANCE LEASE LIABILITIES - Interest Expense (Details) - Convertible Notes Payable - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
June 2022 Toggle Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 3,219 | $ 5,500 | $ 12,464 | $ 7,284 |
Amortization of debt discount and issuance costs | 785 | 922 | 2,520 | 1,228 |
Total interest expense | 4,004 | $ 6,422 | 14,984 | $ 8,512 |
April 2023 Toggle Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 1,096 | 3,562 | ||
Amortization of debt discount and issuance costs | 41,530 | 42,242 | ||
Total interest expense | $ 42,626 | $ 45,804 |
DEBT AND FINANCE LEASE LIABIL_9
DEBT AND FINANCE LEASE LIABILITIES - Reference Price And Floor Price Applicable to Issuance of Senior Convertible Notes (Details) - Convertible Notes Payable | Sep. 30, 2023 $ / shares |
Series A Notes | |
Debt Instrument [Line Items] | |
Reference Price (in dollars per share) | $ 5.975 |
Floor Price (in dollars per share) | 0.478 |
Series B-1 Notes | |
Debt Instrument [Line Items] | |
Reference Price (in dollars per share) | 4.050 |
Floor Price (in dollars per share) | 0.478 |
Series B-2 Notes | |
Debt Instrument [Line Items] | |
Reference Price (in dollars per share) | 2.140 |
Floor Price (in dollars per share) | 0.478 |
Series B-3 Notes | |
Debt Instrument [Line Items] | |
Reference Price (in dollars per share) | 1.952 |
Floor Price (in dollars per share) | 0.478 |
Series A-1 Notes | |
Debt Instrument [Line Items] | |
Reference Price (in dollars per share) | 2.940 |
Floor Price (in dollars per share) | 0.380 |
Series A-2 Notes | |
Debt Instrument [Line Items] | |
Reference Price (in dollars per share) | 2.940 |
Floor Price (in dollars per share) | $ 0.380 |
DEBT AND FINANCE LEASE LIABI_10
DEBT AND FINANCE LEASE LIABILITIES - Debt Conversion (Details) - Convertible Notes Payable - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Series A Notes | ||
Debt Instrument [Line Items] | ||
Shares of common stock issued for conversions (in shares) | 21,785,618 | |
Average conversion price (in dollars per share) | $ 2.41 | |
Series A Notes | Principal balance converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 50,000 | |
Series A Notes | Make-whole interest converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 2,500 | |
Series B-1 Notes | ||
Debt Instrument [Line Items] | ||
Shares of common stock issued for conversions (in shares) | 21,127,720 | |
Average conversion price (in dollars per share) | $ 1.24 | |
Series B-1 Notes | Principal balance converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 25,000 | |
Series B-1 Notes | Make-whole interest converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 1,250 | |
Series B-2 Notes | ||
Debt Instrument [Line Items] | ||
Shares of common stock issued for conversions (in shares) | 21,758,268 | |
Average conversion price (in dollars per share) | $ 0.72 | |
Series B-2 Notes | Principal balance converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 15,000 | |
Series B-2 Notes | Make-whole interest converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 750 | |
Series B-3 Notes | ||
Debt Instrument [Line Items] | ||
Shares of common stock issued for conversions (in shares) | 22,639,159 | |
Average conversion price (in dollars per share) | $ 0.56 | |
Series B-3 Notes | Principal balance converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 12,075 | |
Series B-3 Notes | Make-whole interest converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 604 | |
Series A-1 Notes | ||
Debt Instrument [Line Items] | ||
Shares of common stock issued for conversions (in shares) | 128,380,608 | 128,380,608 |
Average conversion price (in dollars per share) | $ 1.02 | $ 1.02 |
Series A-1 Notes | Principal balance converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 125,000 | $ 125,000 |
Series A-1 Notes | Make-whole interest converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 6,250 | $ 6,250 |
Series A-2 Notes | ||
Debt Instrument [Line Items] | ||
Shares of common stock issued for conversions (in shares) | 5,721,018 | 5,721,018 |
Average conversion price (in dollars per share) | $ 1.40 | $ 1.40 |
Series A-2 Notes | Principal balance converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 7,619 | $ 7,619 |
Series A-2 Notes | Make-whole interest converted | ||
Debt Instrument [Line Items] | ||
Converted instrument, amount | $ 381 | $ 381 |
CAPITAL STRUCTURE (Details)
CAPITAL STRUCTURE (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||
Apr. 11, 2023 USD ($) $ / shares shares | Apr. 04, 2023 USD ($) $ / shares shares | Nov. 29, 2021 shares | Sep. 24, 2021 USD ($) day shares | Jun. 11, 2021 USD ($) day shares | Aug. 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Sep. 30, 2023 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares shares | Aug. 03, 2023 shares | Aug. 02, 2023 shares | Dec. 31, 2022 USD ($) shares | |
Class of Warrant or Right [Line Items] | ||||||||||||||
Common stock and preferred stock, shares authorized (in shares) | shares | 1,750,000,000 | 1,750,000,000 | ||||||||||||
Common stock, shares authorized (in shares) | shares | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | 800,000,000 | 800,000,000 | |||||||||
Preferred stock, shares authorized (in shares) | shares | 150,000,000 | 150,000,000 | 150,000,000 | |||||||||||
Number of shares called by each warrant (in shares) | shares | 1 | 1 | ||||||||||||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 11.50 | $ 11.50 | ||||||||||||
Revaluation of warrant liability | $ 0 | $ 586,000 | $ 315,000 | $ 3,493,000 | ||||||||||
Warrant liability | $ 65,000 | $ 65,000 | $ 380,000 | |||||||||||
Purchase period | 36 months | |||||||||||||
Issuance of common stock for commitment shares | $ 2,600,000 | |||||||||||||
Price per share (in dollars per share) | $ / shares | $ 1.12 | |||||||||||||
Registration Rights Agreement | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Maximum authorized amount | $ 300,000,000 | |||||||||||||
Maximum allowable beneficial ownership (in percent) | 4.99% | |||||||||||||
Percentage of volume weighted average price | 97% | |||||||||||||
Consecutive trading days | day | 3 | |||||||||||||
Number of shares issued in transaction (in shares) | shares | 3,420,990 | 17,248,244 | ||||||||||||
Consideration received on transaction | $ 8,400,000 | $ 123,700,000 | ||||||||||||
Registration Rights Agreement Shares Issued For Commitment Fee | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of shares issued in transaction (in shares) | shares | 155,703 | |||||||||||||
Second Purchase Agreement | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Maximum allowable beneficial ownership (in percent) | 4.99% | |||||||||||||
Purchase period | 36 months | |||||||||||||
Percentage of volume weighted average price | 97% | |||||||||||||
Consecutive trading days | day | 3 | |||||||||||||
Number of shares issued in transaction (in shares) | shares | 252,040 | 28,790,787 | ||||||||||||
Issuance of common stock for commitment shares | $ 2,900,000 | |||||||||||||
Consideration received on transaction | $ 300,000,000 | $ 59,200,000 | ||||||||||||
Maximum authorized amount (in shares) | shares | 29,042,827 | |||||||||||||
Common stock issued under Equity Distribution Agreement, net | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Maximum authorized amount | $ 600,000,000 | $ 400,000,000 | ||||||||||||
Number of shares issued in transaction (in shares) | shares | 27,662,880 | 19,009,227 | 66,690,443 | 19,009,227 | ||||||||||
Consideration received on transaction | $ 53,100,000 | $ 98,000,000 | $ 115,600,000 | $ 98,000,000 | ||||||||||
Sale of stock, purchase agreement, increase in authorized amount | $ 200,000,000 | |||||||||||||
Fixed commission rate of gross offering proceeds of shares sold | 2.50% | |||||||||||||
Gross proceeds | 54,500,000 | 100,500,000 | 118,600,000 | 100,500,000 | ||||||||||
Payments for commissions | 1,400,000 | $ 2,500,000 | 3,000,000 | $ 2,500,000 | ||||||||||
Common stock issued under Equity Distribution Agreement, net | Other Current Liabilities | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Accrued commission | $ 1,100,000 | $ 1,100,000 | $ 1,700,000 | |||||||||||
Common stock issued under Equity Distribution Agreement, net | Arithmetic Average | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Average price (in dollars per share) | $ / shares | $ 1.97 | $ 5.29 | $ 1.78 | $ 5.29 | ||||||||||
Public Offering | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of shares issued in transaction (in shares) | shares | 29,910,715 | |||||||||||||
Consideration received on transaction | $ 32,200,000 | |||||||||||||
Gross proceeds | $ 32,244,000 | $ 0 | ||||||||||||
Direct Offering | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Number of shares issued in transaction (in shares) | shares | 59,374,999 | |||||||||||||
Consideration received on transaction | $ 63,200,000 | |||||||||||||
Price per share (in dollars per share) | $ / shares | $ 1.12 | |||||||||||||
Authorized amount | $ 100,000,000 | |||||||||||||
Private Warrant | ||||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||||
Warrants outstanding (in shares) | shares | 841,183 | 841,183 | 1,137,850 | |||||||||||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 96.96 | $ 96.96 |
STOCK BASED COMPENSATION EXPE_3
STOCK BASED COMPENSATION EXPENSE - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Apr. 24, 2023 USD ($) shares | Sep. 30, 2023 USD ($) shares | Jun. 30, 2023 USD ($) $ / shares | Sep. 30, 2022 USD ($) $ / shares | Jun. 30, 2022 day milestone $ / shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation | $ | $ 68,916 | $ 211,214 | |||||
Total stock-based compensation expense | $ | $ 18,659 | $ 102,845 | $ 68,916 | $ 211,214 | |||
Time Based Options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 36 months | ||||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Grants in period (in shares) | shares | 11,631,426 | ||||||
RSUs | Director | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 1 year | ||||||
Market based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of award vesting milestones | milestone | 3 | ||||||
Vesting threshold trading days | day | 20 | ||||||
Target stock price per share (in dollars per share) | $ / shares | $ 25 | ||||||
Stock-based compensation | $ | $ 55,800 | ||||||
Total stock-based compensation expense | $ | $ 6,800 | ||||||
Grants in period (in shares) | shares | 4,400,000 | ||||||
Market based RSUs | $40 Vesting Milestone | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target stock price per share (in dollars per share) | $ / shares | $ 40 | ||||||
Market based RSUs | $55 Vesting Milestone | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target stock price per share (in dollars per share) | $ / shares | $ 55 | ||||||
Market based RSUs | $25 Vesting Milestone | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target stock price per share (in dollars per share) | $ / shares | $ 25 | ||||||
Performance-Based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Grants in period (in shares) | shares | 2,900,000 | 1,500,000 | |||||
Grant date fair value | $ | $ 11,100 | ||||||
2017 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expiration period | 10 years | ||||||
Minimum | Performance-Based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 0% | ||||||
Minimum | 2017 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise period | 1 year | ||||||
Maximum | Market based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Target stock price per share (in dollars per share) | $ / shares | $ 55 | ||||||
Maximum | Performance-Based RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting percentage | 200% | ||||||
Maximum | 2017 Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Exercise period | 4 years |
STOCK BASED COMPENSATION EXPE_4
STOCK BASED COMPENSATION EXPENSE - Stock Option Activity (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Options | ||
Outstanding at beginning of period (in shares) | shares | 22,470,585 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | 6,723,629 | |
Cancelled (in shares) | shares | 588,508 | |
Options at end of period (in shares) | shares | 15,158,448 | 22,470,585 |
Vested and exercisable as of period end (in shares) | shares | 15,158,448 | |
Weighted Average Exercise Price Per share | ||
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 1.31 | |
Granted (in dollars per share) | $ / shares | 0 | |
Exercised (in dollars per share) | $ / shares | 1.06 | |
Cancelled (in dollars per share) | $ / shares | 2.24 | |
Outstanding at end of period (in dollars per share) | $ / shares | $ 1.31 | |
Vested and exercisable at period end (in dollars per share) | $ / shares | $ 1.39 | |
Weighted Average Remaining Contractual Term (Years) | ||
Outstanding | 3 years 10 months 9 days | 5 years 3 months 29 days |
Vested and exercisable as of period end | 3 years 10 months 9 days |
STOCK BASED COMPENSATION EXPE_5
STOCK BASED COMPENSATION EXPENSE - Schedule of RSUs (Details) | 9 Months Ended |
Sep. 30, 2023 shares | |
RSUs | |
Number of RSUs | |
Non-vested RSUs at beginning of period (in shares) | 19,574,800 |
Granted (in shares) | 11,631,426 |
Released (in shares) | 10,915,751 |
Cancelled (in shares) | 6,188,682 |
Non-vested RSUs at end of period (in shares) | 14,101,793 |
Market based RSUs | |
Number of RSUs | |
Non-vested RSUs at beginning of period (in shares) | 2,071,058 |
Granted (in shares) | 4,400,000 |
Released (in shares) | 0 |
Cancelled (in shares) | 3,571,058 |
Non-vested RSUs at end of period (in shares) | 2,900,000 |
STOCK BASED COMPENSATION EXPE_6
STOCK BASED COMPENSATION EXPENSE - Assumptions used to determine Grant Date Fair Value (Details) - Performance-Based RSUs - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price (in dollars per share) | $ 0.82 | |
Term (years) | 2 years 8 months 12 days | |
Risk-free interest rate, maximum | 5% | |
Risk-free interest rate, minimum | 4.80% | |
Risk-free interest rate | 3.90% | |
Expected volatility, maximum | 127% | |
Expected volatility, minimum | 116% | |
Expected volatility | 99% | |
Expected dividend yield | 0% | 0% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price (in dollars per share) | $ 1.40 | |
Term (years) | 2 years 3 months 18 days | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price (in dollars per share) | $ 3.40 | |
Term (years) | 2 years 4 months 24 days |
STOCK BASED COMPENSATION EXPE_7
STOCK BASED COMPENSATION EXPENSE - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 18,659 | $ 102,845 | $ 68,916 | $ 211,214 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 414 | 0 | 1,813 | 0 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | 3,383 | 10,105 | 19,043 | 28,112 |
Selling, general, and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation expense | $ 14,862 | $ 92,740 | $ 48,060 | $ 183,102 |
STOCK BASED COMPENSATION EXPE_8
STOCK BASED COMPENSATION EXPENSE - Unrecognized Compensation Expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Unrecognized Compensation Expense | |
Total unrecognized compensation expense at September 30, 2023 | $ 46,861 |
Market based RSUs | |
Unrecognized Compensation Expense | |
Market Based RSUs and RSUs | 8,331 |
RSUs | |
Unrecognized Compensation Expense | |
Market Based RSUs and RSUs | $ 38,530 |
DECONSOLIDATION OF SUBSIDIARY -
DECONSOLIDATION OF SUBSIDIARY - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from deconsolidation of discontinued operation | $ 0 | $ 0 | $ 24,935 | $ 0 |
Discontinued Operations, Disposed of by Means Other than Sale | Romeo Power, Inc | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from deconsolidation of discontinued operation | $ 24,935 |
DECONSOLIDATION OF SUBSIDIARY_2
DECONSOLIDATION OF SUBSIDIARY - Assets and Liabilities to Assignment for the Benefit of Creditors of Loss on Deconsolidation of Subsidiaries (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Liabilities deconsolidated: | |||||
Loss from deconsolidation of discontinued operation | $ 0 | $ 0 | $ 24,935 | $ 0 | |
Discontinued Operations, Disposed of by Means Other than Sale | Romeo Power, Inc | |||||
Assets deconsolidated: | |||||
Cash and cash equivalents | 213 | 213 | $ 7,555 | ||
Accounts receivable, net | 0 | 0 | 262 | ||
Inventory | 7,271 | 7,271 | |||
Prepaid expenses and other current assets | 3,351 | 3,351 | 9,881 | ||
Restricted cash and cash equivalents, non-current | 1,500 | 1,500 | 1,500 | ||
Property, plant and equipment, net | 17,555 | 17,555 | |||
Intangible assets, net | 656 | 656 | |||
Investments in affiliates | 10,000 | 10,000 | |||
Other assets | 23,364 | 23,364 | 23,948 | ||
Total assets deconsolidated | 63,910 | 63,910 | 129,150 | ||
Liabilities deconsolidated: | |||||
Accounts payable | 15,583 | 15,583 | |||
Accrued expenses and other current liabilities | 57,612 | 57,612 | 22,990 | ||
Debt and finance lease liabilities, current | 1,206 | 1,206 | 1,440 | ||
Long-term debt and finance lease liabilities, net of current portion | 1,160 | 1,160 | 1,499 | ||
Operating lease liabilities | 21,664 | 21,664 | |||
Warrant liability | 8 | 8 | |||
Other non-current liabilities | 0 | 0 | |||
Total liabilities deconsolidated | 97,233 | 97,233 | $ 72,773 | ||
Net liabilities derecognized from deconsolidation | (33,323) | (33,323) | |||
Less: intercompany balances derecognized | 54,084 | 54,084 | |||
Less: cash payments directly related to deconsolidation | 2,724 | 2,724 | |||
Less: derecognition of goodwill | $ 1,450 | 1,450 | |||
Loss from deconsolidation of discontinued operation | $ 24,935 |
DECONSOLIDATION OF SUBSIDIARY_3
DECONSOLIDATION OF SUBSIDIARY - Assets and Liabilities Subject to Assignment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Total current assets subject to assignment for the benefit of creditors | $ 0 | $ 29,025 |
Non-current assets | ||
Assets subject to assignment for the benefit of creditors | 0 | 100,125 |
Current liabilities | ||
Total current liabilities subject to assignment for the benefit of creditors | 0 | 49,102 |
Long-term liabilities | ||
Total long-term liabilities subject to assignment for the benefit of creditors | 0 | 23,671 |
Discontinued Operations, Disposed of by Means Other than Sale | Romeo Power, Inc | ||
Current assets | ||
Cash and cash equivalents | 213 | 7,555 |
Accounts receivable, net | 0 | 262 |
Inventory | 11,327 | |
Prepaid expenses and other current assets | 3,351 | 9,881 |
Total current assets subject to assignment for the benefit of creditors | 29,025 | |
Non-current assets | ||
Restricted cash and cash equivalents, non-current | 1,500 | 1,500 |
Property, plant and equipment, net | 19,221 | |
Intangible assets, net | 621 | |
Investments in affiliates | 10,000 | |
Prepayment - Long-term Supply Agreement | 44,835 | |
Other assets | 23,364 | 23,948 |
Assets subject to assignment for the benefit of creditors | 100,125 | |
Total assets deconsolidated | 63,910 | 129,150 |
Current liabilities | ||
Accounts payable | 24,672 | |
Accrued expenses and other current liabilities | 57,612 | 22,990 |
Debt and finance lease liabilities, current | 1,206 | 1,440 |
Total current liabilities subject to assignment for the benefit of creditors | 49,102 | |
Long-term liabilities | ||
Long-term debt and finance lease liabilities, net of current portion | 1,160 | 1,499 |
Operating lease liabilities | 22,132 | |
Warrant liability | 40 | |
Total long-term liabilities subject to assignment for the benefit of creditors | 23,671 | |
Total liabilities deconsolidated | $ 97,233 | $ 72,773 |
DECONSOLIDATION OF SUBSIDIARY_4
DECONSOLIDATION OF SUBSIDIARY - Components of Loss From Discontinued Operations Presented in the Consolidated Statements of Operations (Details) - Discontinued Operations, Disposed of by Means Other than Sale - Romeo Power, Inc $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Revenues | $ 1,665 |
Cost of revenues | 12,926 |
Gross loss | (11,261) |
Total operating expenses | 65,445 |
Loss from operations | (76,706) |
Interest expense, net | (53) |
Revaluation of warrant liability | 33 |
Loss from discontinued operations | (76,726) |
Research and development | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total operating expenses | 5,673 |
Selling, general and administrative | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total operating expenses | 14,937 |
Loss on supplier deposits | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total operating expenses | $ 44,835 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Oct. 20, 2023 USD ($) | Aug. 11, 2023 truck | Dec. 21, 2021 USD ($) | Jan. 26, 2021 | Oct. 19, 2020 | Sep. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Feb. 28, 2023 payment | Dec. 31, 2022 USD ($) | Jul. 31, 2022 USD ($) payment | Sep. 30, 2023 USD ($) truck | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) agreement | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 23, 2020 derivative_action | |
Other Commitments [Line Items] | |||||||||||||||||
Settlement liabilities, current | $ 85,500 | $ 90,000 | $ 85,500 | $ 85,500 | |||||||||||||
Number of derivative actions | derivative_action | 2 | ||||||||||||||||
Period of derivative action | 30 days | 30 days | |||||||||||||||
Maximum potential cash payments | 11,900 | $ 11,900 | 11,900 | ||||||||||||||
Number of BEV trucks voluntary recall | truck | 209 | 209 | |||||||||||||||
Warranties issued in period - recall campaign | $ 61,848 | $ 0 | $ 61,848 | $ 0 | |||||||||||||
Number of minimum purchase agreements | agreement | 4 | ||||||||||||||||
Minimum future product purchases, remainder of fiscal year | 1,300 | 1,300 | $ 1,300 | ||||||||||||||
Minimum future product purchases, year one | 10,100 | 10,100 | 10,100 | ||||||||||||||
Minimum future product purchases, year two | 62,600 | 62,600 | 62,600 | ||||||||||||||
Minimum future product purchases, year three | 143,400 | 143,400 | 143,400 | ||||||||||||||
Minimum future product purchases, after year three | 491,000 | 491,000 | 491,000 | ||||||||||||||
FCPM license | Accrued Liabilities | |||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||
Accrued license fees | 13,200 | 32,100 | 13,200 | 13,200 | |||||||||||||
FCPM license | Other Noncurrent Liabilities | |||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||
Accrued license fees | 5,300 | 0 | 5,300 | 5,300 | |||||||||||||
Internal Review | |||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||
Litigation settlement | $ 125,000 | ||||||||||||||||
Payments for legal settlements | 1,500 | $ 1,500 | $ 1,500 | $ 5,000 | $ 5,000 | $ 25,000 | |||||||||||
Number of payments in alternative payment plan | payment | 2 | 2 | |||||||||||||||
Settlement liabilities, current | $ 85,500 | 85,500 | 85,500 | ||||||||||||||
Legal fees | $ 0 | $ 6,000 | $ 200 | $ 25,500 | |||||||||||||
Internal Review | Subsequent Event | |||||||||||||||||
Other Commitments [Line Items] | |||||||||||||||||
Litigation settlement, amount awarded from other party | $ 165,000 |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net loss from continuing operations | $ (425,764) | $ (236,234) | $ (711,025) | $ (562,172) |
Net loss from discontinued operations | 0 | 0 | (101,661) | 0 |
Net loss | $ (425,764) | $ (236,234) | $ (812,686) | $ (562,172) |
Denominator: | ||||
Weighted average shares outstanding, basic (in shares) | 857,213,992 | 438,416,393 | 706,325,212 | 426,382,736 |
Weighted average shares outstanding, diluted (in shares) | 857,213,992 | 438,416,393 | 706,325,212 | 426,382,736 |
Net loss per share, basic and diluted: | ||||
Net loss from continuing operations, basic (in dollars per share) | $ (0.50) | $ (0.54) | $ (1.01) | $ (1.32) |
Net loss from continuing operations, diluted (in dollars per share) | (0.50) | (0.54) | (1.01) | (1.32) |
Net loss from discontinued operations, basic (in dollars per share) | 0 | 0 | (0.14) | 0 |
Net loss from discontinued operations, diluted (in dollars per share) | 0 | 0 | (0.14) | 0 |
Net loss, basic (in dollars per share) | (0.50) | (0.54) | (1.15) | (1.32) |
Net loss, diluted (in dollars per share) | $ (0.50) | $ (0.54) | $ (1.15) | $ (1.32) |
NET LOSS PER SHARE - Schedule_2
NET LOSS PER SHARE - Schedule of Antidilutive Securities (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 75,037,635 | 74,929,848 | 75,037,635 | 74,929,848 |
Convertible Debt | Toggle Convertible Notes (on an as-converted basis) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 20,803,462 | 22,872,040 | 20,803,462 | 22,872,040 |
Convertible Debt | Senior Convertible Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 21,232,749 | 0 | 21,232,749 | 0 |
Outstanding warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 841,183 | 760,915 | 841,183 | 760,915 |
Stock options, including performance stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 15,158,448 | 27,385,088 | 15,158,448 | 27,385,088 |
Restricted stock units, including market based RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 17,001,793 | 23,911,805 | 17,001,793 | 23,911,805 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Second Purchase Agreement - Convertible Notes Payable - USD ($) $ in Millions | 1 Months Ended | |
Aug. 21, 2023 | Nov. 02, 2023 | |
Subsequent Event [Line Items] | ||
Number of shares issued in debt conversion (in shares) | 171,179,577 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of shares issued in debt conversion (in shares) | 30,231,974 | |
Debt conversion, original debt, amount | $ 34 |