XML 30 R11.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

Note 2—Revenue from Contracts with Customers

Revenue Recognition Overview

The Company recognizes revenue when control of the promised goods or services is transferred to its customers, in an amount that reflects the consideration to which it expects to be entitled in exchange for the goods or services. To

achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when the Company satisfies the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account for revenue recognition.

The Company is generally the principal in its customer contracts because it has control over the goods and services prior to their transfer to the customer, and as such, revenue is recognized on a gross basis. Sales and usage-based taxes are excluded from revenue. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The table below presents the Company’s revenue disaggregated by revenue source (in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

June 30, 

​

June 30, 

​

​

2023

    

2024

    

2023

    

2024

Product revenue:

​

​

​

​

​

​

​

​

​

​

​

​

Volume-related

​

​

​

​

​

​

​

​

​

​

​

​

Fuel sales(1) (3)

​

$

53,267

​

$

57,398

​

$

160,162

​

$

125,601

Change in fair value of derivative instruments(2)

​

​

3,600

​

​

61

​

​

1,068

​

​

1,683

RIN Credits

​

​

5,377

​

​

9,523

​

​

9,880

​

​

18,335

LCFS Credits

​

​

2,474

​

​

4,319

​

​

4,772

​

​

4,155

AFTC (4)

​

 

5,059

​

 

6,003

​

 

9,555

​

 

11,360

Total volume-related product revenue

​

​

69,777

​

​

77,304

​

​

185,437

​

​

161,134

Station construction sales

​

​

5,852

​

​

5,656

​

​

9,919

​

​

11,240

Total product revenue

​

 

75,629

​

 

82,960

​

 

195,356

​

 

172,374

Service revenue:

​

​

​

​

​

​

​

​

​

​

​

​

Volume-related, O&M services

​

​

13,913

​

​

14,422

​

​

25,957

​

​

28,157

Other services

​

​

1,006

​

​

572

​

​

1,418

​

​

1,132

Total service revenue

​

​

14,919

​

​

14,994

​

​

27,375

​

​

29,289

Total revenue

​

$

90,548

​

$

97,954

​

$

222,731

​

$

201,663

(1)Includes non-cash stock-based sales incentive contra-revenue charges associated with the Amazon Warrant. For the three and six months ended June 30, 2023, contra-revenue charges recognized in fuel revenue were $13.9 million and $27.7 million, respectively. For the three and six months ended June 30, 2024, contra-revenue charges recognized in fuel revenue were $14.1 million and $27.0 million, respectively. See Note 14 for more information.
(2)Represents changes in fair value of unsettled derivative instruments relating to the Company’s commodity swap and customer fueling contracts associated with the Company’s truck financing program. The amounts are classified as revenue because the Company’s commodity swap contracts are used to economically offset the risk associated with the diesel-to-natural gas price spread resulting from customer fueling contracts under the Company’s truck financing program. See Note 6 for more information about these derivative instruments.
(3)Includes net settlement of the Company’s commodity swap derivative instruments. For the three and six months ended June 30, 2023, net settlement payments recognized in fuel revenue were $1.4 million and $1.0 million, respectively. For the three and six months ended June 30, 2024, net settlement payments recognized in fuel revenue were $0.9 million and $2.4 million, respectively.
(4)Represents the federal alternative fuel excise tax credit (“AFTC”). See Note 19 for more information.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of customer orders for which the work has not been performed. As of June 30, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $39.7 million, which related to the Company’s station construction sale contracts. The Company expects to recognize revenue on the remaining performance obligations under these contracts over the next 12 to 24 months.

For volume-related revenue, the Company has elected to apply an optional exemption, which waives the requirement to disclose the remaining performance obligation for revenue recognized through the ‘right to invoice’ practical expedient.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) in the accompanying condensed consolidated balance sheets.

As of December 31, 2023 and June 30, 2024, the Company’s contract balances were as follows (in thousands):

​

​

​

​

​

​

​

​

    

December 31, 

    

June 30, 

​

​

2023

​

2024

Accounts receivable, net

​

$

98,426

​

$

92,108

​

​

​

​

  

​

​

Contract assets - current

​

$

7,823

​

$

6,317

Contract assets - non-current

​

 

2,433

​

 

2,174

Contract assets - total

​

$

10,256

​

$

8,491

​

​

​

​

  

​

​

Contract liabilities - current

​

$

4,936

​

$

7,794

Contract liabilities - non-current

​

 

151

​

 

113

Contract liabilities - total

​

$

5,087

​

$

7,907

​

Accounts Receivable, Net

“Accounts receivable, net” in the accompanying condensed consolidated balance sheets includes billed and accrued amounts that are currently due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance to provide for the estimated amount of receivables that will not be collected. The allowance is based on an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, and economic conditions that may affect a customer’s ability to pay.

Contract Assets

Contract assets include unbilled amounts typically resulting from the Company’s station construction sale contracts, when the cost-to-cost method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are classified as current or noncurrent based on the timing of billings. The current portion is included in “Other receivables” and in “Prepaid expenses and other current assets” and the noncurrent portion is included in “Notes receivable and other long-term assets, net” in the accompanying condensed consolidated balance sheets.

Contract Liabilities

Contract liabilities consist of billings in excess of revenue recognized from the Company’s station construction sale contracts and payments received from customers in advance of the satisfaction of performance obligations and are classified as current or noncurrent based on when the revenue is expected to be recognized. The current portion and noncurrent portion of contract liabilities are included in “Deferred revenue” and in “Other long-term liabilities,” respectively, in the accompanying condensed consolidated balance sheets.

Revenue recognized in the six months ended June 30, 2023 relating to the Company’s contract liability balances as of December 31, 2022 was $3.3 million. The increase in the contract liability balance in the six months ended June 30, 2024 is mainly driven by billings in excess of revenue recognized and customer advances in the six months ended June

30, 2024, partially offset by $2.6 million of revenue recognized relating to the Company’s contract liability balances as of December 31, 2023.