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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of liabilities measured at fair value on the condensed consolidated balance sheet

The following are the liabilities measured at fair value on the condensed consolidated balance sheet at June 30, 2023 and December 31, 2022 using quoted price in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3):

			Level 1: Quoted Prices in Active Markets for Identical Assets						Level 2: Significant Other Observable Inputs						Level 3: Significant Unobservable Inputs						Total at June 30, 2023						Total Gains (Losses) For The Three Months Ended June 30, 2023						Total Gains (Losses) For The Six Months Ended June 30, 2023
Recurring fair value measurements
Private warrants			$	—					$	—					$	216					$	216					$	784					$	1,784
Stonepeak and Evolve unvested warrants			$	—					$	—					$	—					$	—					$	—					$	—
Institutional/Accredited Investor warrants			$	—					$	—					$	290,632					$	290,632					$	143,010					$	(71,748)
Derivative liability - non-controlling redeemable preferred shares			$	—					$	—					$	353,006					$	353,006					$	83,059					$	6,219
Total recurring fair value measurements			$	—					$	—					$	643,854					$	643,854					$	226,853					$	(63,745)

			Level 1: Quoted Prices in Active Markets for Identical Assets						Level 2: Significant Other Observable Inputs						Level 3: Significant Unobservable Inputs						Total at December 31, 2022						Total Gains (Losses) For The Three Months Ended June 30, 2022						Total Gains (Losses) For The Six Months Ended June 30, 2022
Recurring fair value measurements
Private warrants			$	—					$	—					$	2,000					$	2,000					$	251,000					$	684,000
Stonepeak and Evolve unvested warrants			$	—					$	—					$	—					$	—					4,334,000						8,677,000
Institutional/Accredited Investor warrants			$	—					$	—					$	218,884					$	218,884					$	—					$	—
Derivative liability - non-controlling redeemable preferred shares			$	—					$	—					$	359,225					$	359,225					$	(32,536)					$	20,936
Total recurring fair value measurements			$	—					$	—					$	580,109					$	580,109					$	4,552,464					$	9,381,936

Schedule of fair value on a recurring basis

The following is a reconciliation of the opening and closing balances for the liabilities related to the warrants (Note 11) and derivative liability - non-controlling redeemable preferred shares measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three and six months ended June 30, 2023:

			Private warrants						Stonepeak and Evolve unvested warrants						Institutional/Accredited Investor warrants						Non-controlling redeemable preferred shares - derivative liability
Balance at December 31, 2022			$	2,000					$	—					$	218,884					$	359,225
Total (gains) losses for period included in earnings			(1,000)						—						214,758						76,840
Balance at March 31, 2023			$	1,000					$	—					433,642						$	436,065
Total (gains) losses for period included in earnings			(784)						—						(143,010)						(83,059)
Balance at June 30, 2023			$	216					$	—					$	290,632					$	353,006

Schedule of fair value measurement inputs and valuation techniques

The following table presents the significant unobservable inputs and valuation methodologies used for the Company’s fair value measurements of non-recurring (level 3) Stonepeak and Evolve unvested warrants at June 30, 2023:

Series C Unvested Warrants

Series D Unvested Warrants

Series E Unvested Warrants

Series F Unvested Warrants

Fair value (in millions)

$—

$—

$—

$—

Valuation methodology

Monte Carlo Simulation & Black Scholes

Monte Carlo Simulation & Black Scholes

Monte Carlo Simulation & Black Scholes

Monte Carlo Simulation & Black Scholes

Capital expenditure forecast (in millions)

$—

$—

$—

$—

Probability of warrants vesting (a)

—%

—%

—%

—%

__________________

(a) During the second quarter ended June 30, 2022, the Company significantly lowered its forecast of Levo's capital deployments due to the passage by the United States Congress of the Infrastructure Investment and Jobs Act bill, and the related unveiling of the Environmental Protection Agency’s 2022 Clean School Bus rebates. The resulting lower forecast of capital deployments reduced the probabilities of the future vesting of the unvested warrants. Therefore, at June 30, 2023, the Company has determined that it is unlikely that the unvested warrants will vest.

The following table presents the significant unobservable inputs and valuation methodologies used for the Company’s fair value measurements of non-recurring (level 3) Stonepeak and Evolve unvested warrants at June 30, 2022:

						Series C Unvested Warrants						Series D Unvested Warrants						Series E Unvested Warrants						Series F Unvested Warrants
Fair value (in millions)						$—						$—						$—						$—
Valuation methodology						Monte Carlo Simulation & Black Scholes						Monte Carlo Simulation & Black Scholes						Monte Carlo Simulation & Black Scholes						Monte Carlo Simulation & Black Scholes
Term (years)						8.90						8.90						8.90						8.90
Risk free rate						3.0%						3.0%						3.0%						3.0%
Exercise price						$15.0						$20.0						$30.0						$40.0
Volatility						56.0%						56.0%						56.0%						56.0%
Capital expenditure forecast (in millions)						$125.0						$250.0						$375.0						$500.0
Probability of warrants vesting (a)						—%						—%						—%						—%

__________________

(a) During the second quarter ended June 30, 2022, the Company significantly lowered its forecast of Levo's capital deployments due to the passage by the United States Congress of the Infrastructure Investment and Jobs Act bill, and the related unveiling of the Environmental Protection Agency’s 2022 Clean School Bus rebates. The resulting lower forecast of capital deployments reduced the probabilities of the future vesting of the unvested warrants. Therefore, at June 30, 2022, the Company has determined that it is unlikely that the unvested warrants will vest.

X

- Definition

Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

+ References

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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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