As described in Note 2, Summary of Significant Accounting Policies, in September 2018, Legacy QuantumScape entered into a JVA, which was amended in 2020, with VWGoA and VGA and formed QSV. The Company has determined that the entity was a VIE with a related party, and the Company’s operations were more closely associated with QSV. As such, the Company consolidates QSV for financial reporting purposes, and a non-controlling interest is recorded for VGA’s interest in the net assets and operations of QSV’s operations to the extent of the VGA investment. The Company’s Condensed Consolidated Balance Sheets includes $3.5 million and $3.4 million cash and cash equivalents of QSV as of June 30, 2023 and December 31, 2022, respectively. Although the Company has consolidated the net assets of QSV, it has no right to the use of those assets for its standalone operations.

The following table sets forth the change in redeemable non-controlling interest for the six months ended June 30, 2023 and 2022 (amounts in thousands):


	Redeemable Non-Controlling Interest
Balance as of December 31, 2022	$	1,704
Net income attributable to redeemable non-controlling interest in QSV		30
Balance as of June 30, 2023	$	1,734


	Redeemable Non-Controlling Interest
Balance as of December 31, 2021	$	1,693
Net loss attributable to redeemable non-controlling interest in QSV		(9	)
Balance as of June 30, 2022	$	1,684

Pursuant to the agreement with VWGoA, the Company has reserved $134.0 million to fund its expected equity contributions to QSV, which amounts are included in cash and cash equivalents and marketable securities in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2023.