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Leases | 12 Months Ended
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Dec. 31, 2024
Leases [Abstract] |
Leases | Leases A summary of the balances relating to the Company’s lease assets and liabilities as of December 31, 2024 and 2023 consisted of the following (in thousands):
| Balance Sheet Location |  | December 31, 2024 |  | December 31, 2023
Assets |  |  |  |  |
Operating leases | Operating lease right-of-use assets, net |  | $ | 3,193 |  |  | $ | 4,991 |
Equipment finance leases | Property and equipment, net |  | 730 |  |  | 5,931 |
Total lease assets |  |  | 3,923 |  |  | 10,922 |
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating leases | Other current liabilities |  | 3,028 |  |  | 1,664 |
Equipment finance leases | Other current liabilities |  | 1,054 |  |  | 2,005 |
Sub-total |  |  | 4,082 |  |  | 3,669 |
Non-current |  |  |  |  |
Operating leases | Other non-current liabilities |  | 16,656 |  |  | 3,511 |
Equipment finance leases | Other non-current liabilities |  | 418 |  |  | 1,472 |
Sub-total |  |  | 17,074 |  |  | 4,983 |
Total lease liabilities |  |  | $ | 21,156 |  |  | $ | 8,652 |
Operating Leases The Company has a 5-year office lease on its headquarter facility in Los Angeles, California, which commenced in January 2022, as well as certain other leases (both short-term and long-term) within the United States. In connection with the acquisition of ElectraMeccanica, the Company assumed the leases for a manufacturing facility in Mesa, Arizona and a service and distribution center in Huntington Beach, California, maturing in May 2033 and January 2027, respectively. The Company records lease expense on a straight-line basis over the lease term. Total lease expense recorded was $3.8 million and $2.2 million for the years ended December 31, 2024 and 2023, respectively. Lease terms include renewal or termination options that the Company is reasonably certain to exercise. For leases with a term of 12 months or less, the Company has made an accounting policy election to not record a ROU asset and associated lease liability on its consolidated balance sheets. Total lease expense recorded for these short-term leases was $0 and $24,000 for the years ended December 31, 2024 and 2023, respectively. Equipment Finance Leases The Company leased certain equipment facilities under finance leases that expire on various dates through 2027. The finance lease cost during the years ended December 31, 2024 and 2023 consisted of the following (in thousands):
|  |  |  |  | Years Ended December 31,
|  | Income Statement Location |  |  | 2024 |  | 2023
Amortization |  | Cost of goods sold |  |  | $ | 945 |  |  | $ | 1,378 |
Interest accretion on finance lease liabilities |  | Other expense, net |  |  | 214 |  |  | 418 |
Total |  |  |  |  | $ | 1,159 |  |  | $ | 1,796 |
Supplemental Cash Flow Information, Weighted-Average Remaining Lease Term and Discount Rate The weighted-average remaining lease term and discount rates, as well as supplemental cash flow information for the years ended December 31, 2024 and 2023 consisted of the following (in thousands for the supplemental cash flow information):
|  | Years Ended December 31,
|  | 2024 |  | 2023
Supplemental cash flow information: |  |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 3,913 |  |  | $ | 1,860 |
Right-of-use assets obtained in exchange for operating lease obligations |  | $ | — |  |  | $ | — |
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 7.1 years |  | 2.9 years
Equipment finance leases |  | 0.9 years |  | 1.5 years
Weighted average discount rate: |  |  |  |
Operating lease - incremental borrowing rate |  | 8.9 | % |  | 5.5 | %
Equipment finance leases - rate implicit in the lease |  | 5.9 | % |  | 6.5 | %
Maturity Analysis A summary of the undiscounted cash flows and a reconciliation to the Company’s lease liabilities as of December 31, 2024 consisted of the following (in thousands):
|  | December 31, 2024
|  | Operating Leases |  | Equipment Finance Leases |  | Total
2025 |  | $ | 4,601 |  |  | $ | 1,119 |  |  | $ | 5,720 |
2026 |  | 4,413 |  |  | 317 |  |  | 4,730 |
2027 |  | 2,684 |  |  | 129 |  |  | 2,813 |
2028 |  | 2,647 |  |  | — |  |  | 2,647 |
2029 |  | 2,728 |  |  | — |  |  | 2,728 |
Thereafter |  | 9,934 |  |  | — |  |  | 9,934 |
Total future minimum lease payments |  | $ | 27,007 |  |  | $ | 1,565 |  |  | $ | 28,572 |
Less: imputed interest |  | 7,323 |  |  | 93 |  |  | 7,416 |
Present value of Lease Liabilities |  | $ | 19,684 |  |  | $ | 1,472 |  |  | $ | 21,156 |
Leases | Leases A summary of the balances relating to the Company’s lease assets and liabilities as of December 31, 2024 and 2023 consisted of the following (in thousands):
| Balance Sheet Location |  | December 31, 2024 |  | December 31, 2023
Assets |  |  |  |  |
Operating leases | Operating lease right-of-use assets, net |  | $ | 3,193 |  |  | $ | 4,991 |
Equipment finance leases | Property and equipment, net |  | 730 |  |  | 5,931 |
Total lease assets |  |  | 3,923 |  |  | 10,922 |
Liabilities |  |  |  |  |
Current |  |  |  |  |
Operating leases | Other current liabilities |  | 3,028 |  |  | 1,664 |
Equipment finance leases | Other current liabilities |  | 1,054 |  |  | 2,005 |
Sub-total |  |  | 4,082 |  |  | 3,669 |
Non-current |  |  |  |  |
Operating leases | Other non-current liabilities |  | 16,656 |  |  | 3,511 |
Equipment finance leases | Other non-current liabilities |  | 418 |  |  | 1,472 |
Sub-total |  |  | 17,074 |  |  | 4,983 |
Total lease liabilities |  |  | $ | 21,156 |  |  | $ | 8,652 |
Operating Leases The Company has a 5-year office lease on its headquarter facility in Los Angeles, California, which commenced in January 2022, as well as certain other leases (both short-term and long-term) within the United States. In connection with the acquisition of ElectraMeccanica, the Company assumed the leases for a manufacturing facility in Mesa, Arizona and a service and distribution center in Huntington Beach, California, maturing in May 2033 and January 2027, respectively. The Company records lease expense on a straight-line basis over the lease term. Total lease expense recorded was $3.8 million and $2.2 million for the years ended December 31, 2024 and 2023, respectively. Lease terms include renewal or termination options that the Company is reasonably certain to exercise. For leases with a term of 12 months or less, the Company has made an accounting policy election to not record a ROU asset and associated lease liability on its consolidated balance sheets. Total lease expense recorded for these short-term leases was $0 and $24,000 for the years ended December 31, 2024 and 2023, respectively. Equipment Finance Leases The Company leased certain equipment facilities under finance leases that expire on various dates through 2027. The finance lease cost during the years ended December 31, 2024 and 2023 consisted of the following (in thousands):
|  |  |  |  | Years Ended December 31,
|  | Income Statement Location |  |  | 2024 |  | 2023
Amortization |  | Cost of goods sold |  |  | $ | 945 |  |  | $ | 1,378 |
Interest accretion on finance lease liabilities |  | Other expense, net |  |  | 214 |  |  | 418 |
Total |  |  |  |  | $ | 1,159 |  |  | $ | 1,796 |
Supplemental Cash Flow Information, Weighted-Average Remaining Lease Term and Discount Rate The weighted-average remaining lease term and discount rates, as well as supplemental cash flow information for the years ended December 31, 2024 and 2023 consisted of the following (in thousands for the supplemental cash flow information):
|  | Years Ended December 31,
|  | 2024 |  | 2023
Supplemental cash flow information: |  |  |  |
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 3,913 |  |  | $ | 1,860 |
Right-of-use assets obtained in exchange for operating lease obligations |  | $ | — |  |  | $ | — |
Weighted average remaining lease term: |  |  |  |
Operating leases |  | 7.1 years |  | 2.9 years
Equipment finance leases |  | 0.9 years |  | 1.5 years
Weighted average discount rate: |  |  |  |
Operating lease - incremental borrowing rate |  | 8.9 | % |  | 5.5 | %
Equipment finance leases - rate implicit in the lease |  | 5.9 | % |  | 6.5 | %
Maturity Analysis A summary of the undiscounted cash flows and a reconciliation to the Company’s lease liabilities as of December 31, 2024 consisted of the following (in thousands):
|  | December 31, 2024
|  | Operating Leases |  | Equipment Finance Leases |  | Total
2025 |  | $ | 4,601 |  |  | $ | 1,119 |  |  | $ | 5,720 |
2026 |  | 4,413 |  |  | 317 |  |  | 4,730 |
2027 |  | 2,684 |  |  | 129 |  |  | 2,813 |
2028 |  | 2,647 |  |  | — |  |  | 2,647 |
2029 |  | 2,728 |  |  | — |  |  | 2,728 |
Thereafter |  | 9,934 |  |  | — |  |  | 9,934 |
Total future minimum lease payments |  | $ | 27,007 |  |  | $ | 1,565 |  |  | $ | 28,572 |
Less: imputed interest |  | 7,323 |  |  | 93 |  |  | 7,416 |
Present value of Lease Liabilities |  | $ | 19,684 |  |  | $ | 1,472 |  |  | $ | 21,156 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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