On August 11, 2021, the Company borrowed $25.0 million and $25.0 million from AES Grid Stability and Siemens Industry, respectively, in the form of subordinated promissory notes, each bearing an annual interest at 2.86%. The promissory notes were paid off in full on November 1, 2021 using proceeds from the IPO.

Fluence signs battery-based energy storage product and related service contracts with AES, Siemens, and their subsidiaries (collectively refer to as affiliates). The contract price in such contracts is similar to the price charged by us to third-party customers. Revenue from contracts with affiliates is included in “Revenue from related parties” on the Company’s condensed consolidated statements of operations and comprehensive loss.

In addition, Fluence purchases material and supplies from its affiliates and records the costs in “Cost of goods and services” on the Company’s condensed consolidated statements of operations and comprehensive loss.

Fluence and its affiliates have signed service agreements under which the affiliates provide certain management and administrative services to Fluence. The services include but are not limited to, treasury, information technology services, sales services, and research and development. Cost of services are accrued monthly and included in “Payables and deferred revenue with related parties”, and “General and administrative”, “Sales and marketing”, or “Research and development” on the Company’s condensed consolidated balance sheets and statements of operations and comprehensive loss, respectively.

Fluence paid performance guarantee fees to its affiliates in exchange for guaranteeing Fluence’s performance obligation under certain contracts with Fluence’s customers, which are based on the affiliates’ weighted average cost for bank guarantees and their per annum cost of surety bonds with a reasonable markup. The guarantee fees are included in “Costs of goods and services” on Fluence’s condensed consolidated statements of operations and comprehensive loss.

The following table presents the components of receivables from related parties and payables to related parties on the Company’s condensed consolidated balance sheets:


In thousands	June 30, 2022		September 30, 2021
Accounts receivable	$	23,018	$	26,292
Unbilled receivables	26,300		7,070
Total receivables from related parties	$	49,318	$	33,362
Accounts payable	$	722	$	4,510
Deferred revenue	227,831		220,122
Accrued liabilities	4,880		3,293
Total payables and deferred revenue with related parties	$	233,433	$	227,925

Unbilled receivables represent the excess of revenues recognized over billings to date on sales or service contracts with related parties. Deferred revenue represents the excess billings to date over the amount of revenue recognized to date on sales or service contracts with related parties. Receivables from related parties and payables and deferred revenue with related parties are unsecured and settlement of these balances occurs in cash. No provision has been made related to the receivables from related parties.

The following table presents the related party transactions that are included the Company’s condensed consolidated statements of operations and comprehensive loss for the periods indicated:


In thousands	Three Months Ended June 30,				Nine Months Ended June 30,
	2022		2021		2022		2021
Revenue	$	123,011	$	13,512	$	497,771	$	62,164
Cost of goods and services	(6,714)		(7,269)		(16,510)		(15,755)
Research and development expenses	(63)		69		(108)		(103)
Sales and marketing expenses	(528)		(1,908)		(1,603)		(2,570)
General and administrative expenses	(50)		(303)		(1,412)		(670)