Workhorse (WKHS) 10-Q14 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Oct. 31, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-37673
Entity Registrant Name	WORKHORSE GROUP INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	26-1394771
Entity Address, Address Line One	3600 Park 42 Drive
Entity Address, Address Line Two	Suite 160E
Entity Address, City or Town	Sharonville
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45241
City Area Code	888
Local Phone Number	646-5205
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	WKHS
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		260,923,427
Entity Central Index Key	0001425287
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 38,865,065	$ 99,276,301
Accounts receivable, less allowance for credit losses of zero as of September 30, 2023 and December 31, 2022, respectively	7,424,346	2,079,343
Other receivable	0	15,000,000
Inventory, net	40,783,292	8,850,142
Prepaid expenses and other current assets	10,705,904	14,152,481
Total current assets	97,778,607	139,358,267
Property, plant and equipment, net	37,465,094	21,501,095
Investment in Tropos	0	10,000,000
Lease right-of-use assets	10,878,500	11,706,803
Other assets	176,310	176,310
Total Assets	146,298,511	182,742,475
Current liabilities:
Accounts payable	11,936,156	10,235,345
Accrued and other current liabilities	5,858,754	46,207,431
Deferred revenue, current	4,736,831	3,375,000
Warranty liability	1,777,520	2,207,674
Current portion of lease liabilities	1,561,769	1,285,032
Total current liabilities	25,871,030	63,310,482
Deferred revenue, long-term	0	2,005,000
Lease liability, long-term	7,658,788	8,840,062
Total Liabilities	33,529,818	74,155,544
Commitments and contingencies (Note 13)
Stockholders’ Equity:
Series A preferred stock, par value $0.001 per share, 75,000,000 shares authorized, zero shares issued and outstanding as of September 30, 2023 and December 31, 2022	0	0
Common stock, par value $0.001 per share, 450,000,000 shares authorized, 255,382,128 shares issued and outstanding as of September 30, 2023 and 250,000,000 shares authorized, 165,605,355 shares issued and outstanding as of December 31, 2022	255,382	165,605
Additional paid-in capital	818,824,798	736,070,388
Accumulated deficit	(706,311,487)	(627,649,062)
Total stockholders’ equity	112,768,693	108,586,931
Total Liabilities and Stockholders’ Equity	$ 146,298,511	$ 182,742,475

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0	$ 0
Preferred stock, par value (in usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	75,000,000	75,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	450,000,000	250,000,000
Common stock, shares issued (in shares)	255,382,128	165,605,355
Common stock, shares outstanding (in shares)	255,382,128	165,605,355

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
Condensed Consolidated Statements of Operations - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Statement [Abstract]
Sales, net of returns and allowances	$ 3,028,545	$ 1,548,798	$ 8,688,423	$ 1,575,652
Cost of sales	6,557,358	9,515,547	20,312,854	16,459,102
Gross loss	(3,528,813)	(7,966,749)	(11,624,431)	(14,883,450)
Operating expenses
Selling, general and administrative	11,756,291	34,753,017	40,448,651	59,693,419
Research and development	5,771,588	6,126,951	18,056,182	15,165,946
Total operating expenses	17,527,879	40,879,968	58,504,833	74,859,365
Loss from operations	(21,056,692)	(48,846,717)	(70,129,264)	(89,742,815)
Interest income (expense), net	410,980	27,716	1,466,839	(2,290,993)
Other income (loss)	(10,000,000)	13,413,500	(10,000,000)	13,413,500
Loss before benefit for income taxes	(30,645,712)	(35,405,501)	(78,662,425)	(78,620,308)
Benefit for income taxes	0	0	0	0
Net loss	$ (30,645,712)	$ (35,405,501)	$ (78,662,425)	$ (78,620,308)
Net loss per share of common stock
Basic (in usd per share)	$ (0.14)	$ (0.22)	$ (0.41)	$ (0.50)
Diluted (in usd per share)	$ (0.14)	$ (0.22)	$ (0.41)	$ (0.50)
Weighted average shares used in computing net loss per share of common stock
Basic (in shares)	215,878,517	160,213,944	189,756,837	157,117,380
Diluted (in shares)	215,878,517	160,213,944	189,756,837	157,117,380

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders’ Equity - USD ($)		Total	At Market Offering	Common Stock	Common Stock At Market Offering	Additional Paid-in Capital	Additional Paid-in Capital At Market Offering	Accumulated Deficit	Accumulated Other Comprehensive Loss
Common stock, beginning balance (in shares) at Dec. 31, 2021				151,915,455
Beginning balance at Dec. 31, 2021		$ 174,692,773		$ 151,916		$ 686,318,201		$ (510,374,844)	$ (1,402,500)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued in exchange of convertible notes (in shares)				7,833,666
Common stock issued in exchange of convertible notes		25,381,078		$ 7,834		25,373,244
Common stock issued through At-The-Market offering (in shares)					98,986
Common stock issued through At-The-Market offering			$ 248,695		$ 99		$ 248,596
Stock options and vesting of restricted shares (in shares)	[1]			599,970
Stock options and vesting of restricted shares	[1]	(466,532)		$ 599		(467,131)
Stock-based compensation		8,627,977				8,627,977
Net loss		(78,620,308)						(78,620,308)
Other comprehensive loss		1,402,500							1,402,500
Common stock, ending balance (in shares) at Sep. 30, 2022				160,448,077
Ending balance at Sep. 30, 2022		131,266,183		$ 160,448		720,100,887		(588,995,152)	0
Common stock, beginning balance (in shares) at Jun. 30, 2022				160,058,512
Beginning balance at Jun. 30, 2022		163,828,453		$ 160,059		717,258,045		(553,589,651)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options and vesting of restricted shares (in shares)	[1]			389,565
Stock options and vesting of restricted shares	[1]	(142,044)		$ 389		(142,433)
Stock-based compensation		2,985,275				2,985,275
Net loss		(35,405,501)						(35,405,501)
Common stock, ending balance (in shares) at Sep. 30, 2022				160,448,077
Ending balance at Sep. 30, 2022		$ 131,266,183		$ 160,448		720,100,887		(588,995,152)	0
Common stock, beginning balance (in shares) at Dec. 31, 2022		165,605,355		165,605,355
Beginning balance at Dec. 31, 2022		$ 108,586,931		$ 165,605		736,070,388		(627,649,062)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for securities litigation settlement (in shares)				25,380,711
Common stock issued for securities litigation settlement		20,000,000		$ 25,381		19,974,619
Common stock issued through At-The-Market offering (in shares)				116,347	63,323,352
Common stock issued through At-The-Market offering		200,000	52,789,512	$ 116	$ 63,323	199,884	52,726,189
Stock options and vesting of restricted shares (in shares)	[2]			956,363
Stock options and vesting of restricted shares	[2]	(467,214)		$ 957		(468,171)
Stock-based compensation		10,321,889				10,321,889
Net loss		$ (78,662,425)						(78,662,425)
Common stock, ending balance (in shares) at Sep. 30, 2023		255,382,128		255,382,128
Ending balance at Sep. 30, 2023		$ 112,768,693		$ 255,382		818,824,798		(706,311,487)	0
Common stock, beginning balance (in shares) at Jun. 30, 2023				205,221,154
Beginning balance at Jun. 30, 2023		107,387,721		$ 205,221		782,848,275		(675,665,775)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common stock issued for securities litigation settlement (in shares)				25,380,711
Common stock issued for securities litigation settlement		20,000,000		$ 25,381		19,974,619
Common stock issued through At-The-Market offering (in shares)					24,639,221
Common stock issued through At-The-Market offering			$ 12,497,904		$ 24,639		$ 12,473,265
Stock options and vesting of restricted shares (in shares)	[2]			141,042
Stock options and vesting of restricted shares	[2]	8,376		$ 141		8,235
Stock-based compensation		3,520,404				3,520,404
Net loss		$ (30,645,712)						(30,645,712)
Common stock, ending balance (in shares) at Sep. 30, 2023		255,382,128		255,382,128
Ending balance at Sep. 30, 2023		$ 112,768,693		$ 255,382		$ 818,824,798		$ (706,311,487)	$ 0

[1]Net of tax payments related to shares withheld for option exercises and vested stock.[2]Net of tax payments related to shares withheld for option exercises and vested stock.

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
Condensed Consolidated Statements of Cash Flows - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net loss	$ (78,662,425)	$ (78,620,308)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,468,832	1,378,365
Change in fair value and loss on exchange of convertible notes	0	1,769,857
Deferred revenue	(143,169)	0
Stock-based compensation	10,321,889	8,627,977
Impairment of investment in Tropos	10,000,000	0
Change in inventory and prepaid purchases reserve	550,090	5,196,774
Non-cash lease expense	583,348	855,119
Other non-cash items	200,000	175,750
Effects of changes in operating assets and liabilities:
Accounts receivable	(5,295,003)	(16,398,420)
Inventory	(28,492,532)	(6,969,095)
Prepaid expenses and other current assets	(1,083,886)	(10,317,025)
Other assets	0	(84,401)
Accounts payable, accrued liabilities and other	(5,563,625)	29,650,491
Warranty liability	(430,154)	(1,244,432)
Net cash used in operating activities	(95,546,635)	(65,979,348)
Cash flows from investing activities:
Capital expenditures	(16,527,317)	(9,708,699)
Investment in Tropos	0	(5,000,000)
Net cash used in investing activities	(16,527,317)	(14,708,699)
Cash flows from financing activities:
Proceeds from issuance of common stock	52,789,512	248,695
Payments on finance lease	(659,582)	(623,648)
Exercise of options and restricted share award activity	(467,214)	(466,532)
Net cash provided by (used in) financing activities	51,662,716	(841,485)
Change in cash and cash equivalents	(60,411,236)	(81,529,532)
Cash and cash equivalents, beginning of the period	99,276,301	201,647,394
Cash and cash equivalents, end of the period	$ 38,865,065	$ 120,117,862

SUMMARY OF BUSINESS AND SIGNIFI

SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES	9 Months Ended
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES	SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES Overview We are an American technology company with a vision to pioneer the transition to zero-emission commercial vehicles. Our primary focus is to provide sustainable and cost-effective solutions to the commercial transportation sector. We design and manufacture all-electric delivery trucks and drone systems, including the technology that optimizes the way these vehicles operate. We are focused on our core competency of bringing our electric delivery vehicle programs to market. Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts and operations of the Company and those of our wholly-owned subsidiaries. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. All intercompany balances and transactions have been eliminated upon consolidation. In the opinion of our management, the unaudited Condensed Consolidated Financial Statements have been prepared on a basis consistent with the audited consolidated financial statements and include all adjustments necessary for the fair presentation of Workhorse’s financial condition, results of operations and cash flows for the interim periods presented. Such adjustments are of a normal, recurring nature. The results of operations and cash flows for the interim periods presented may not necessarily be indicative of full-year results. Reference should be made to the financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022. Liquidity and Going Concern The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP applicable to a going concern. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these unaudited Condensed Consolidated Financial Statements are issued and will be able to realize assets and discharge its liabilities and commitments in the normal course of business. Pursuant to the requirements of the Financial Accounting Standard Board's (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern (“ASC 205-40”), management must evaluate whether there are conditions and events, considered in aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date these unaudited Condensed Consolidated Financial Statements are issued. In accordance with ASC 205-40, management’s analysis can only include the potential mitigating impact of management’s plans that have not been fully implemented as of the issuance date if (a) it is probable that management’s plans will be effectively implemented on a timely basis, and (b) it is probable that the plans, when implemented, will alleviate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. We had sales of $8.7 million, incurred a net loss of $78.7 million and used $95.5 million of cash in operating activities during the nine months ended September 30, 2023. As of September 30, 2023, the Company had total working capital of $71.9 million, including $38.9 million of cash and cash equivalents, and an accumulated deficit of $706.3 million. As a result of our recurring losses from operations, accumulated deficit, projected capital needs, and delays in bringing our vehicles to market and, accordingly, lower than expected revenues from vehicle sales, substantial doubt exists regarding our ability to continue as a going concern within one year after the issuance date of the accompanying unaudited Condensed Consolidated Financial Statements. Our ability to continue as a going concern is contingent upon successful execution of management’s intended plan over the next twelve months to improve the Company’s liquidity and working capital, which includes, but is not limited to: • Generating revenue by increasing sales of our vehicles, delivery and other services. • Reducing expenses and limiting non-contracted capital expenditures. • Raising capital to fund operations through the issuance of debt or equity securities, including through our at-the market offering program (“ATM Program)”, the sale of assets, or other strategic transactions. It is essential that we have access to capital as we bring our existing line of vehicles to market, scale up production and sales of such vehicles and continue to develop our next generation of vehicles. There is no assurance that we will be successful in implementing management’s plans to generate liquidity to fund these activities or other aspects of our short and long-term strategy, that our projections of our future capital needs will prove accurate or that any additional funding would be available or sufficient to continue operations in future periods. The unaudited Condensed Consolidated Financial Statements do not include any adjustments that may result from the outcome of this uncertainty. Reclassifications Certain prior period balances have been reclassified to conform to the current year presentation in the unaudited Condensed Consolidated Financial Statements and the accompanying notes. These reclassifications have no effect on previously reported results of operations or stockholders’ equity. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes.

INVENTORY, NET

INVENTORY, NET	9 Months Ended
INVENTORY, NET	Sep. 30, 2023
Inventory Disclosure [Abstract]
INVENTORY, NET	INVENTORY, NET Inventory, net consisted of the following: September 30, 2023 December 31, 2022 Raw materials $ 24,032,324 $ 42,500,878 Work in process 1,516,984 25,210,131 Finished goods 1 17,745,316 301,645 43,294,624 68,012,654 Less: inventory reserves (2,511,332) (59,162,512) Inventory, net $ 40,783,292 $ 8,850,142 (1) Finished goods inventory includes new vehicles available for sale. We reserve inventory for any excess or obsolete inventories or when we believe the net realizable value of inventories is less than the carrying value. As of September 30, 2023 and December 31, 2022, the Company recorded inventory reserves of $2.5 million and $59.2 million, respectively. The period over period decrease in inventory reserves was primarily driven by our efforts to sell and dispose of C-Series vehicle program inventory, which was fully reserved as the program was discontinued at the end of 2022. The sale and disposal activity did not have a material impact on the Company’s results of operations during the nine months ended September 30, 2023.

CONTRACT MANUFACTURING SERVICES

CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS	9 Months Ended
CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS	Sep. 30, 2023
Related Party Transactions [Abstract]
CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS	CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS We have a minority ownership investment in Tropos Technologies, Inc. (“Tropos”). The investment was obtained during the third quarter of 2022 in exchange for a cash payment of $5.0 million and a $5.0 million contribution of non-cash consideration representing a deposit from Tropos for future assembly services under an Assembly Services Agreement. The $5.0 million non-cash consideration was recorded as deferred revenue and is recognized as revenue over time as assembly service performance obligations are satisfied. We record our investment at cost less impairment, if applicable. In accordance with FASB ASC Topic 321, Investments - Equity Securities, we assess our investment for impairment at each reporting period to determine if the fair value has declined below its cost basis and if the impairment is other-than-temporary. As of September 30, 2023, we determined that our investment in Tropos is impaired based on the economic conditions and uncertainties that have significantly affected Tropos' performance and financial position. The impairment is considered to be other-than-temporary as the decline in fair value of the investment is not expected to recover in the foreseeable future. The impairment charge recognized for our investment is $10.0 million, which represents the difference between the original cost of the investment and its fair value as of the impairment assessment date. The impairment loss was recognized in Other Income (Loss) in the unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2023.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	9 Months Ended
PREPAID EXPENSES AND OTHER CURRENT ASSETS	Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES AND OTHER CURRENT ASSETS	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: September 30, 2023 December 31, 2022 Prepaid purchases (1) $ 26,252,384 $ 34,611,649 Less: prepaid purchases reserve (2) (17,419,622) (22,163,338) Prepaid purchases, net 8,832,762 12,448,311 Prepaid insurance 1,260,313 1,198,769 Other 612,829 505,401 Prepaid expenses and other current assets $ 10,705,904 $ 14,152,481 (1) The Company’s prepaid purchases consist primarily of deposits made to our suppliers for non-recurring engineering costs, capital expenditures, and production parts. The decrease in prepaid purchases as compared to December 31, 2022 is primarily due to receiving inventory on supplier orders related to our W4 CC, W750 and W56 vehicle programs, with limited new supplier orders requiring prepayment. Additionally, we wrote-off prepaid purchases related to the C-Series vehicle program, which were fully reserved as the program was discontinued in 2022. (2) We record reserves on prepaid purchases that are significantly aged, for balances that represent deposits for certain production parts related to the Company’s C-Series vehicle program, and for balances specifically identified as having a carrying value in excess of net realizable value. The reserve represents our best estimate of deposits on orders that we do not expect to recover. The decrease in the reserve was a result of the write-off of prepaid purchases related to the C-Series vehicle program, which was fully reserved as the program was discontinued in 2022.

REVENUE

REVENUE	9 Months Ended
REVENUE	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Revenue Recognition The following table provides a summary of sales activity for the periods indicated: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Sales, net of returns and allowances $ 2,570,250 $ 1,336,792 $ 7,292,417 $ 1,336,792 Other sales 458,295 212,006 1,396,006 238,860 Total sales, net of returns and allowances $ 3,028,545 $ 1,548,798 $ 8,688,423 $ 1,575,652 Sales for the three months ended September 30, 2023 included the reversal of a $2.4 million sales allowance related to W4 CC vehicle sales. Sales for the nine months ended September 30, 2023 and 2022 consisted primarily of W4 CC vehicle sales. Other sales for the three and nine months ended September 30, 2023 consisted of delivery services, service parts and other services. Deferred revenue is equivalent to the total service fee allocated to the assembly service performance obligations that are unsatisfied as of the balance sheet date. Deferred revenue was $4.7 million and $5.4 million as of September 30, 2023 and December 31, 2022, respectively. Revenue recognized from the deferred revenue balance was $0.1 million and $0.2 million for the three and nine months ended September 30, 2023, respectively, and zero for the three and nine months ended September 30, 2022.

ACCRUED AND OTHER CURRENT LIABI

ACCRUED AND OTHER CURRENT LIABILITIES	9 Months Ended
ACCRUED AND OTHER CURRENT LIABILITIES	Sep. 30, 2023
Payables and Accruals [Abstract]
ACCRUED AND OTHER CURRENT LIABILITIES	ACCRUED AND OTHER CURRENT LIABILITIES Accrued and other current liabilities consisted of the following: September 30, 2023 December 31, 2022 Legal reserve (Note 13) $ — $ 35,000,000 Compensation and related costs 2,852,605 4,967,187 Other 3,006,149 6,240,244 Total accrued and other current liabilities $ 5,858,754 $ 46,207,431 Warranties Warranty liability activity consisted of the following for the periods indicated: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Warranty liability, beginning of period $ 1,922,580 $ 3,322,212 $ 2,207,674 $ 4,583,916 Warranty costs incurred (289,404) (387,584) (884,717) (1,086,542) Provision for warranty 144,344 404,856 454,563 (157,890) Warranty liability, end of period $ 1,777,520 $ 3,339,484 $ 1,777,520 $ 3,339,484

LEASES

LEASES	9 Months Ended
LEASES	Sep. 30, 2023
Leases [Abstract]
LEASES	LEASES We have entered into various operating and finance lease agreements for offices, manufacturing and warehouse facilities. We determine if an arrangement is a lease, or contains a lease provision, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for our use by the lessor. We have elected not to disclose in the unaudited Condensed Consolidated Balance Sheets leases with a lease term of 12 months or less at lease inception that do not contain a purchase option or renewal term provision we are reasonably certain to exercise. All other lease right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. Our leases may include options to extend the lease term for up to 5 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain we will exercise such options. Three Months Ended Nine Months Ended 2023 2022 2023 2022 Short-term lease expense $ 74,058 $ 179,704 $ 200,733 $ 603,712 Operating lease expense 614,060 521,566 1,754,557 1,284,533 Total lease expense $ 688,118 $ 701,270 $ 1,955,290 $ 1,888,245 Lease right-of-use assets consisted of the following: September 30, 2023 December 31, 2022 Operating leases $ 5,207,130 $ 5,884,865 Finance leases 5,671,370 5,821,938 Total lease right-of-use assets $ 10,878,500 $ 11,706,803 Lease liabilities consisted of the following: September 30, 2023 December 31, 2022 Operating leases $ 6,516,981 $ 6,977,896 Finance leases 2,703,576 3,147,198 Total lease liabilities 9,220,557 10,125,094 Less: current portion (1,561,769) (1,285,032) Long-term portion $ 7,658,788 $ 8,840,062
LEASES	LEASES We have entered into various operating and finance lease agreements for offices, manufacturing and warehouse facilities. We determine if an arrangement is a lease, or contains a lease provision, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for our use by the lessor. We have elected not to disclose in the unaudited Condensed Consolidated Balance Sheets leases with a lease term of 12 months or less at lease inception that do not contain a purchase option or renewal term provision we are reasonably certain to exercise. All other lease right-of-use assets and lease liabilities are recognized based on the present value of lease payments over the lease term at commencement date. Because most of our leases do not provide an implicit rate of return, we used our incremental borrowing rate based on the information available at lease commencement date in determining the present value of lease payments. Our leases may include options to extend the lease term for up to 5 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain we will exercise such options. Three Months Ended Nine Months Ended 2023 2022 2023 2022 Short-term lease expense $ 74,058 $ 179,704 $ 200,733 $ 603,712 Operating lease expense 614,060 521,566 1,754,557 1,284,533 Total lease expense $ 688,118 $ 701,270 $ 1,955,290 $ 1,888,245 Lease right-of-use assets consisted of the following: September 30, 2023 December 31, 2022 Operating leases $ 5,207,130 $ 5,884,865 Finance leases 5,671,370 5,821,938 Total lease right-of-use assets $ 10,878,500 $ 11,706,803 Lease liabilities consisted of the following: September 30, 2023 December 31, 2022 Operating leases $ 6,516,981 $ 6,977,896 Finance leases 2,703,576 3,147,198 Total lease liabilities 9,220,557 10,125,094 Less: current portion (1,561,769) (1,285,032) Long-term portion $ 7,658,788 $ 8,840,062

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
STOCK-BASED COMPENSATION	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION We maintain, as approved by the board of directors and the stockholders, the 2017 Incentive Stock Plan, the 2019 Incentive Stock Plan and the 2023 Long-Term Incentive Plan (the “Plans”) providing for the issuance of stock-based awards to employees, officers, directors or consultants of the Company. Non-qualified stock options may only be granted with an exercise price equal to the market value of our common stock on the grant date. Awards under the Plans may be either vested or unvested options, or unvested restricted stock. The Plans have authorized 17.5 million shares for issuance of stock-based awards. As of September 30, 2023 there were approximatel y 2.9 million shares available for issuance of future stock awards under the Plans. Stock-based compensation expense The following table summarizes stock-based compensation expense for the periods indicated: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options $ 244,887 $ 245,867 $ 727,996 $ 732,830 Restricted stock awards 2,385,351 2,047,989 6,952,423 5,954,098 Performance-based restricted stock awards 890,166 691,419 2,641,470 1,941,049 Total stock-based compensation expense $ 3,520,404 $ 2,985,275 $ 10,321,889 $ 8,627,977 Stock options A summary of stock option activity for the nine months ended September 30, 2023 is as follows: Number of Options Weighted Weighted Balance, December 31, 2022 423,626 $ 7.6 6.7 Exercised (50,200) 1.1 Forfeited (80,997) 1.7 Balance, September 30, 2023 292,429 $ 10.3 8.3 Number of options exercisable at September 30, 2023 204,213 $ 10.3 8.3 As of September 30, 2023, unrecognized compensation expense was $0.9 million for unvested options which is expected to be recognized over the next 0.9 years. Restricted stock awards A summary of restricted stock award activity for the nine months ended September 30, 2023 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2022 3,525,331 $ 4.9 Granted 3,962,731 1.5 Vested (1,516,409) 4.5 Forfeited (311,998) 2.7 Balance, September 30, 2023 5,659,655 $ 2.7 As of September 30, 2023, unrecognized compensation expense was $11.7 million for unvested restricted stock awards which is expected to be recognized over the next 1.6 years. Performance share units ( “ PSUs ” ) As of September 30, 2023, the number of unvested PSUs was 3.1 million. The vesting of the PSUs is conditioned upon achievement of certain performance objectives over performance periods ending December 31, 2024 and 2025 as defined in each award agreement. Fifty percent of the PSUs vest based upon the Company’s total shareholder return as compared to a group of peer companies (“TSR PSUs”), and fifty percent of the PSUs vest based upon our performance on certain measures including a cumulative adjusted EBITDA target (“EBITDA PSUs”). Depending on the actual achievement of the performance objectives, the grantee may earn between 0% and 200% of the target PSUs. A summary of the activity for PSU awards with total shareholder return performance objectives for the nine months ended September 30, 2023 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2022 738,751 $ 11.8 Granted 986,144 1.9 Forfeited (22,278) 1.9 Balance, September 30, 2023 1,702,617 $ 6.2 The grant date fair value of $1.88 per TSR PSU for the awards issued in 2023 was estimated using a Monte-Carlo simulation model using a volatility assumption of 109% and risk-free interest rate of 3.77%. The grant date fair value of $11.79 per TSR PSU for the awards issued in 2022 was estimated using a Monte-Carlo simulation model using a volatility assumption of 117% and risk-free interest rate of 0.69%. As of September 30, 2023, unrecognized compensation expense was $5.0 million for unvested TSR PSUs, which is expected to be recognized over the next 1.5 years. A summary of the PSU awards with cumulative adjusted EBITDA targets for the nine months ended September 30, 2023 is as follows: Number of Unvested Shares Balance, December 31, 2022 432,546 Granted 986,144 Forfeited (22,278) Balance, September 30, 2023 1,396,412

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
STOCKHOLDERS' EQUITY	Sep. 30, 2023
Equity [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS ’ EQUITY Securities Litigation Settlement On September 1, 2023, we issued 25.4 million shares of common stock with an aggregate value of $20.0 million in connection with the settlement of the Securities Litigation as described below in Note 13, Commitments and Contingencies . The number of shares was based on the market price per share of our common stock on August 31, 2023. This transaction was recorded as a noncash operating activity. As a result of the settlement, we no longer have any obligation related to the securities litigation and, as such, the $15.0 million insurance receivable previously recorded in Other Receivable and $35.0 million legal reserve previously recorded in Accrued and Other Current Liabilities were zero as of September 30, 2023. At-The-Market Sales Agreement On March 10, 2022, we entered into the ATM Program, under which we may offer and sell shares of our common stock having an aggregate sales price of up to $175.0 million.

INCOME TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2023
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESAs of September 30, 2023 and December 31, 2022, the Company's deferred tax liability was zero. Cumulative deferred tax assets are fully reserved as there is not sufficient evidence to conclude it is more likely than not the deferred tax assets are realizable. No current liability for federal or state income taxes has been included in these unaudited Condensed Consolidated Financial Statements due to the loss for the periods.

LOSS PER SHARE

LOSS PER SHARE	9 Months Ended
LOSS PER SHARE	Sep. 30, 2023
Earnings Per Share [Abstract]
LOSS PER SHARE	LOSS PER SHARE Basic loss per share of common stock is calculated by dividing net loss by the weighted-average shares outstanding for the period. Potentially dilutive shares, which are based on the weighted-average shares of common stock underlying outstanding stock-based awards and warrants using the treasury stock method, and convertible notes using the if-converted method, are included when calculating the diluted net loss per share of common stock when their effect is dilutive. The following table presents the potentially dilutive shares that were excluded from the computation of diluted net loss per share of common stock, because their effect was anti-dilutive: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Stock-based awards and warrants 10,094,146 3,364,289 10,094,146 10,129,870 Convertible notes (1) — — — 7,833,666

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
RECENT ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards and Pronouncements Recently Adopted There are no accounting standards or pronouncements recently adopted impacting the Company. Accounting Standards and Pronouncements Not Yet Adopted There are no accounting standards or pronouncements not yet adopted impacting the Company.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES General Matters The Company is party to various negotiations and legal proceedings arising in the normal course of business. The Company provides reserves for these matters when a loss is probable and reasonably estimable. The Company does not disclose a range of potential loss because the likelihood of such a loss is remote. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s financial position, results of operations, cash flows or liquidity. Federal Motor Vehicle Safety Standards (“FMVSS”) Certification and Other Regulatory Matters For information regarding certain regulatory matters, see Note 17, “Commitments and Contingencies – Federal Motor Vehicle Safety Standards (“FMVSS”) Certification and Other Regulatory Matters” included in Item 8, “Financial Statements and Supplementary Data” of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Legal Proceedings Securities Litigation On October 24, 2022, the Company entered into a binding term sheet to resolve the putative class action (the “Securities Class Action”) brought in the Central District of California (Case No.2:21-cv-02072) on behalf of purchasers of the Company’s securities from March 10, 2020 through May 10, 2021. On January 13, 2023, the parties executed a Stipulation of Settlement setting forth the terms of the settlement of the class action and resolution of all claims. On July 28, 2023 (the “Judgment Date”), the Court entered an order (the “Order”) granting final approval of the Stipulation of Settlement, resolving the Securities Class Action. Pursuant to the Stipulation of Settlement, in exchange for a release of all claims and dismissal with prejudice of the Securities Class Action, the Company agreed to create a settlement fund with an escrow agent (the “Settlement Fund”), consisting of $15.0 million in cash and $20.0 million in shares of common stock of the Company (the “Settlement Shares”) from which class members will receive payment. The escrow agent may sell the Settlement Shares and deposit the proceeds from such sales into the Settlement Fund or may distribute the Settlement Shares to class members. Pursuant to the Stipulation of Settlement, the number of Settlement Shares to be issued was based on the volume weighted average price (“VWAP”) of the Company’s common stock for the 15 trading days immediately preceding the Judgment Date. The VWAP would be adjusted if, at market close on the trading day before the date the Company deposits the Settlement Shares, the market price per share of the Company’s common stock deviated more than 25% above or below the VWAP Price. Upon such deviation, the number of Settlement Shares would be adjusted, upward or downward, such that the aggregate value of the Settlement Shares equals $20.0 million. Consistent with the foregoing, the Company issued 25,380,711 shares of its common stock into the Settlement Fund as Settlement Shares in September 2023.

Debt

Debt	9 Months Ended
Debt	Sep. 30, 2023
Debt Disclosure [Abstract]
Debt	DEBT On August 10, 2023, the Company entered into a Floorplan and Security Agreement (the “Agreement”) with Mitsubishi HC Capital America, Inc. Pursuant to this arrangement, the Company has obtained a revolving floorplan line of credit with a maximum borrowing limit of $5.0 million, which remained undrawn and fully available as of September 30, 2023. The floorplan line of credit allows the Company to finance the acquisition of inventory, which is primarily intended for use in our manufacturing and sales of our W4 CC and W750 vehicles. Under this arrangement, the Company can borrow funds up to the specified borrowing limit to acquire eligible inventory. As the inventory is sold, the Company is required to repay the borrowings from the proceeds of the sales. The terms of the floorplan lending line of credit include interest charged on the outstanding borrowings and may also include other fees and covenants. Interest is typically charged at a variable rate based on a reference interest rate, such as the Secured Overnight Financing Rate (“SOFR”), plus 4.86%. The floorplan lending line of credit is secured by a security interest in the eligible inventory. The term of the Agreement is one year and is subject to automatic renewal on an annual basis. The Company believes that the Agreement provides a valuable source of financing to support its inventory management and sales operations. However, the Agreement also exposes the Company to risks related to changes in interest rates, inventory values, and the availability of eligible inventory.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net loss	$ (30,645,712)	$ (35,405,501)	$ (78,662,425)	$ (78,620,308)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF BUSINESS AND SIGNI_2

SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Overview	Overview We are an American technology company with a vision to pioneer the transition to zero-emission commercial vehicles. Our primary focus is to provide sustainable and cost-effective solutions to the commercial transportation sector. We design and manufacture all-electric delivery trucks and drone systems, including the technology that optimizes the way these vehicles operate. We are focused on our core competency of bringing our electric delivery vehicle programs to market.
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and include the accounts and operations of the Company and those of our wholly-owned subsidiaries. Accordingly, they do not include all of the information and footnotes required by GAAP for annual audited financial statements. All intercompany balances and transactions have been eliminated upon consolidation.
Liquidity and Capital Resources	Liquidity and Going Concern The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP applicable to a going concern. The going concern basis of presentation assumes that the Company will continue in operation one year after the date these unaudited Condensed Consolidated Financial Statements are issued and will be able to realize assets and discharge its liabilities and commitments in the normal course of business. Pursuant to the requirements of the Financial Accounting Standard Board's (“FASB”) Accounting Standards Codification (“ASC”) Topic 205-40, Presentation of Financial Statements - Going Concern (“ASC 205-40”), management must evaluate whether there are conditions and events, considered in aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for one year after the date these unaudited Condensed Consolidated Financial Statements are issued. In accordance with ASC 205-40, management’s analysis can only include the potential mitigating impact of management’s plans that have not been fully implemented as of the issuance date if (a) it is probable that management’s plans will be effectively implemented on a timely basis, and (b) it is probable that the plans, when implemented, will alleviate the relevant conditions or events that raise substantial doubt about the Company’s ability to continue as a going concern. We had sales of $8.7 million, incurred a net loss of $78.7 million and used $95.5 million of cash in operating activities during the nine months ended September 30, 2023. As of September 30, 2023, the Company had total working capital of $71.9 million, including $38.9 million of cash and cash equivalents, and an accumulated deficit of $706.3 million. As a result of our recurring losses from operations, accumulated deficit, projected capital needs, and delays in bringing our vehicles to market and, accordingly, lower than expected revenues from vehicle sales, substantial doubt exists regarding our ability to continue as a going concern within one year after the issuance date of the accompanying unaudited Condensed Consolidated Financial Statements. Our ability to continue as a going concern is contingent upon successful execution of management’s intended plan over the next twelve months to improve the Company’s liquidity and working capital, which includes, but is not limited to: • Generating revenue by increasing sales of our vehicles, delivery and other services. • Reducing expenses and limiting non-contracted capital expenditures. • Raising capital to fund operations through the issuance of debt or equity securities, including through our at-the market offering program (“ATM Program)”, the sale of assets, or other strategic transactions.
Reclassifications	Reclassifications Certain prior period balances have been reclassified to conform to the current year presentation in the unaudited Condensed Consolidated Financial Statements and the accompanying notes. These reclassifications have no effect on previously reported results of operations or stockholders’ equity.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, costs and expenses and related disclosures in the accompanying notes.
Revenue Recognition	Deferred revenue is equivalent to the total service fee allocated to the assembly service performance obligations that are unsatisfied as of the balance sheet date.
Recent Accounting Pronouncements	RECENT ACCOUNTING PRONOUNCEMENTS Accounting Standards and Pronouncements Recently Adopted There are no accounting standards or pronouncements recently adopted impacting the Company. Accounting Standards and Pronouncements Not Yet Adopted There are no accounting standards or pronouncements not yet adopted impacting the Company.

INVENTORY, NET (Tables)

INVENTORY, NET (Tables)	9 Months Ended
INVENTORY, NET (Tables)	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory, net consisted of the following: September 30, 2023 December 31, 2022 Raw materials $ 24,032,324 $ 42,500,878 Work in process 1,516,984 25,210,131 Finished goods 1 17,745,316 301,645 43,294,624 68,012,654 Less: inventory reserves (2,511,332) (59,162,512) Inventory, net $ 40,783,292 $ 8,850,142 (1) Finished goods inventory includes new vehicles available for sale.

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	9 Months Ended
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	Sep. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid and Other Current Assets	Prepaid expenses and other current assets consisted of the following: September 30, 2023 December 31, 2022 Prepaid purchases (1) $ 26,252,384 $ 34,611,649 Less: prepaid purchases reserve (2) (17,419,622) (22,163,338) Prepaid purchases, net 8,832,762 12,448,311 Prepaid insurance 1,260,313 1,198,769 Other 612,829 505,401 Prepaid expenses and other current assets $ 10,705,904 $ 14,152,481 (1) The Company’s prepaid purchases consist primarily of deposits made to our suppliers for non-recurring engineering costs, capital expenditures, and production parts. The decrease in prepaid purchases as compared to December 31, 2022 is primarily due to receiving inventory on supplier orders related to our W4 CC, W750 and W56 vehicle programs, with limited new supplier orders requiring prepayment. Additionally, we wrote-off prepaid purchases related to the C-Series vehicle program, which were fully reserved as the program was discontinued in 2022. (2) We record reserves on prepaid purchases that are significantly aged, for balances that represent deposits for certain production parts related to the Company’s C-Series vehicle program, and for balances specifically identified as having a carrying value in excess of net realizable value. The reserve represents our best estimate of deposits on orders that we do not expect to recover. The decrease in the reserve was a result of the write-off of prepaid purchases related to the C-Series vehicle program, which was fully reserved as the program was discontinued in 2022.

REVENUE (Tables)

REVENUE (Tables)	9 Months Ended
REVENUE (Tables)	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Sales Activity	The following table provides a summary of sales activity for the periods indicated: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Sales, net of returns and allowances $ 2,570,250 $ 1,336,792 $ 7,292,417 $ 1,336,792 Other sales 458,295 212,006 1,396,006 238,860 Total sales, net of returns and allowances $ 3,028,545 $ 1,548,798 $ 8,688,423 $ 1,575,652

ACCRUED AND OTHER CURRENT LIA_2

ACCRUED AND OTHER CURRENT LIABILITIES - (Tables)	9 Months Ended
ACCRUED AND OTHER CURRENT LIABILITIES - (Tables)	Sep. 30, 2023
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued and other current liabilities consisted of the following: September 30, 2023 December 31, 2022 Legal reserve (Note 13) $ — $ 35,000,000 Compensation and related costs 2,852,605 4,967,187 Other 3,006,149 6,240,244 Total accrued and other current liabilities $ 5,858,754 $ 46,207,431
Schedule of Product Warranty Liability	Warranty liability activity consisted of the following for the periods indicated: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Warranty liability, beginning of period $ 1,922,580 $ 3,322,212 $ 2,207,674 $ 4,583,916 Warranty costs incurred (289,404) (387,584) (884,717) (1,086,542) Provision for warranty 144,344 404,856 454,563 (157,890) Warranty liability, end of period $ 1,777,520 $ 3,339,484 $ 1,777,520 $ 3,339,484

LEASES (Tables)

LEASES (Tables)	9 Months Ended
LEASES (Tables)	Sep. 30, 2023
Leases [Abstract]
Schedule of Lease, Cost	Three Months Ended Nine Months Ended 2023 2022 2023 2022 Short-term lease expense $ 74,058 $ 179,704 $ 200,733 $ 603,712 Operating lease expense 614,060 521,566 1,754,557 1,284,533 Total lease expense $ 688,118 $ 701,270 $ 1,955,290 $ 1,888,245 Lease right-of-use assets consisted of the following: September 30, 2023 December 31, 2022 Operating leases $ 5,207,130 $ 5,884,865 Finance leases 5,671,370 5,821,938 Total lease right-of-use assets $ 10,878,500 $ 11,706,803
Schedule of Lease Liabilities	Lease liabilities consisted of the following: September 30, 2023 December 31, 2022 Operating leases $ 6,516,981 $ 6,977,896 Finance leases 2,703,576 3,147,198 Total lease liabilities 9,220,557 10,125,094 Less: current portion (1,561,769) (1,285,032) Long-term portion $ 7,658,788 $ 8,840,062

STOCK-BASED COMPENSATION - (Tab

STOCK-BASED COMPENSATION - (Tables)	9 Months Ended
STOCK-BASED COMPENSATION - (Tables)	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Based Compensation Activity	The following table summarizes stock-based compensation expense for the periods indicated: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options $ 244,887 $ 245,867 $ 727,996 $ 732,830 Restricted stock awards 2,385,351 2,047,989 6,952,423 5,954,098 Performance-based restricted stock awards 890,166 691,419 2,641,470 1,941,049 Total stock-based compensation expense $ 3,520,404 $ 2,985,275 $ 10,321,889 $ 8,627,977
Schedule of Stock Option Activity	A summary of stock option activity for the nine months ended September 30, 2023 is as follows: Number of Options Weighted Weighted Balance, December 31, 2022 423,626 $ 7.6 6.7 Exercised (50,200) 1.1 Forfeited (80,997) 1.7 Balance, September 30, 2023 292,429 $ 10.3 8.3 Number of options exercisable at September 30, 2023 204,213 $ 10.3 8.3
Schedule of Restricted Stock Activity	A summary of restricted stock award activity for the nine months ended September 30, 2023 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2022 3,525,331 $ 4.9 Granted 3,962,731 1.5 Vested (1,516,409) 4.5 Forfeited (311,998) 2.7 Balance, September 30, 2023 5,659,655 $ 2.7
Schedule of Nonvested Performance-Based Units Activity	A summary of the activity for PSU awards with total shareholder return performance objectives for the nine months ended September 30, 2023 is as follows: Number of Unvested Shares Weighted Average Grant Date Fair Value per Share Balance, December 31, 2022 738,751 $ 11.8 Granted 986,144 1.9 Forfeited (22,278) 1.9 Balance, September 30, 2023 1,702,617 $ 6.2 A summary of the PSU awards with cumulative adjusted EBITDA targets for the nine months ended September 30, 2023 is as follows: Number of Unvested Shares Balance, December 31, 2022 432,546 Granted 986,144 Forfeited (22,278) Balance, September 30, 2023 1,396,412

LOSS PER SHARE - (Tables)

LOSS PER SHARE - (Tables)	9 Months Ended
LOSS PER SHARE - (Tables)	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table presents the potentially dilutive shares that were excluded from the computation of diluted net loss per share of common stock, because their effect was anti-dilutive: Three Months Ended September 30, Nine Months Ended 2023 2022 2023 2022 Stock-based awards and warrants 10,094,146 3,364,289 10,094,146 10,129,870 Convertible notes (1) — — — 7,833,666

SUMMARY OF BUSINESS AND SIGNI_3

SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING PRINCIPLES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Sales, net of returns and allowances	$ 3,028,545	$ 1,548,798	$ 8,688,423	$ 1,575,652
Net loss	(30,645,712)	$ (35,405,501)	(78,662,425)	(78,620,308)
Net cash used in operating activities			(95,546,635)	$ (65,979,348)
Working capital	71,900,000		71,900,000
Cash and cash equivalents	38,865,065		38,865,065		$ 99,276,301
Accumulated deficit	$ (706,311,487)		$ (706,311,487)		$ (627,649,062)

INVENTORY, NET - Schedule of In

INVENTORY, NET - Schedule of Inventory (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Raw materials	$ 24,032,324	$ 42,500,878
Work in process	1,516,984	25,210,131
Finished goods	17,745,316	301,645
Gross inventory	43,294,624	68,012,654
Less: inventory reserves	(2,511,332)	(59,162,512)
Inventory, net	$ 40,783,292	$ 8,850,142

INVENTORY, NET - Additional Inf

INVENTORY, NET - Additional Information (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Inventory valuation reserve	$ 2,511,332	$ 59,162,512

CONTRACT MANUFACTURING SERVIC_2

CONTRACT MANUFACTURING SERVICES AND INVESTMENT IN TROPOS (Details) - Tropos Trechnologies, Inc. - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Short-Term Debt [Line Items]
Equity method investment, impairment loss	$ 10		$ 10
Affiliated Entity
Short-Term Debt [Line Items]
Payment to acquire preferred stock		$ 5
Non-cash consideration			$ 5
Affiliated Entity \| Deposit For Future Services
Short-Term Debt [Line Items]
Amount of transaction				$ 5

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid purchases	$ 26,252,384	$ 34,611,649
Less: prepaid purchases reserve	(17,419,622)	(22,163,338)
Prepaid purchases, net	8,832,762	12,448,311
Prepaid insurance	1,260,313	1,198,769
Other	612,829	505,401
Prepaid expenses and other current assets	$ 10,705,904	$ 14,152,481

REVENUE - Schedule of Sales Act

REVENUE - Schedule of Sales Activity (Details) - USD ($)	3 Months Ended		9 Months Ended
REVENUE - Schedule of Sales Activity (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	$ 3,028,545	$ 1,548,798	$ 8,688,423	$ 1,575,652
Sales, net of returns and allowances
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	2,570,250	1,336,792	7,292,417	1,336,792
Other sales
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	$ 458,295	$ 212,006	$ 1,396,006	$ 238,860

REVENUE - Additional Informatio

REVENUE - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
REVENUE - Additional Information (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	$ 3,028,545	$ 1,548,798	$ 8,688,423	$ 1,575,652
Deferred revenue	4,700,000		4,700,000		$ 5,400,000
Contract with customer, liability, revenue recognized	100,000	$ 0	$ 200,000	$ 0
Sales Allowance
Disaggregation of Revenue [Line Items]
Total sales, net of returns and allowances	$ 2,400,000

ACCRUED AND OTHER CURRENT LIA_3

ACCRUED AND OTHER CURRENT LIABILITIES - Accrued And Other Current Liabilities (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Payables and Accruals [Abstract]
Legal reserve	$ 0	$ 35,000,000
Compensation and related costs	2,852,605	4,967,187
Other	3,006,149	6,240,244
Total accrued and other current liabilities	$ 5,858,754	$ 46,207,431

ACCRUED AND OTHER CURRENT LIA_4

ACCRUED AND OTHER CURRENT LIABILITIES - Accrued Warranty Activity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Movement in Extended Product Warranty Accrual [Roll Forward]
Warranty liability, beginning of period	$ 1,922,580	$ 3,322,212	$ 2,207,674	$ 4,583,916
Warranty costs incurred	(289,404)	(387,584)	(884,717)	(1,086,542)
Provision for warranty	144,344	404,856	454,563	(157,890)
Warranty liability, end of period	$ 1,777,520	$ 3,339,484	$ 1,777,520	$ 3,339,484

LEASES - Narrative (Details)

LEASES - Narrative (Details)	Sep. 30, 2023
Leases [Abstract]
Lessee, operating lease, renewal term	5 years

LEASES - Lease Expense For Oper

LEASES - Lease Expense For Operating Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Leases [Abstract]
Short-term lease expense	$ 74,058	$ 179,704	$ 200,733	$ 603,712
Operating lease expense	614,060	521,566	1,754,557	1,284,533
Total lease expense	$ 688,118	$ 701,270	$ 1,955,290	$ 1,888,245

LEASES - Right of Use Assets -

LEASES - Right of Use Assets - (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating leases	$ 5,207,130	$ 5,884,865
Finance leases	5,671,370	5,821,938
Lease right-of-use assets	$ 10,878,500	$ 11,706,803

LEASES - Lease Liabilities - (D

LEASES - Lease Liabilities - (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Leases [Abstract]
Operating leases	$ 6,516,981	$ 6,977,896
Finance leases	2,703,576	3,147,198
Total lease liabilities	9,220,557	10,125,094
Less: current portion	(1,561,769)	(1,285,032)
Long-term portion	$ 7,658,788	$ 8,840,062

STOCK BASED COMPENSATION - Addi

STOCK BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized (in shares)	17,500,000
Shares available for grant (in shares)	2,900,000
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, options	$ 0.9
Unrecognized compensation expense, recognition period	10 months 24 days
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, recognition period	1 year 7 months 6 days
Unrecognized compensation expense	$ 11.7
Shares outstanding (in shares)	5,659,655		3,525,331
Performance-based restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, recognition period	1 year 6 months
Unrecognized compensation expense	$ 5
Shares outstanding (in shares)	3,100,000
Performance-based restricted stock awards \| 1.88$
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing price (in usd per share)	$ 1.88
Volatility assumption	109%
Share-based compensation risk free interest rate	3.77%
Performance-based restricted stock awards \| 11.79$
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing price (in usd per share)		$ 11.79
Volatility assumption		117%
Share-based compensation risk free interest rate		0.69%
Performance-based restricted stock awards \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards ultimately vest	0%
Performance-based restricted stock awards \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards ultimately vest	200%
PSUs With Total Shareholder Return Performance Objective
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)	1,702,617		738,751
Vesting percent	50%
EBITDA target performance share units (EBITDA PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares outstanding (in shares)	1,396,412		432,546
Vesting percent	50%

STOCK BASED COMPENSATION - Shar

STOCK BASED COMPENSATION - Share Based Compensation Expense (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 3,520,404	$ 2,985,275	$ 10,321,889	$ 8,627,977
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	244,887	245,867	727,996	732,830
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	2,385,351	2,047,989	6,952,423	5,954,098
Performance-based restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 890,166	$ 691,419	$ 2,641,470	$ 1,941,049

STOCK BASED COMPENSATION - Stoc

STOCK BASED COMPENSATION - Stock Option Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Number of Options
Beginning balance (in shares)	423,626
Exercised (in shares)	(50,200)
Forfeited (in shares)	(80,997)
Ending balance (in shares)	292,429	423,626
Number of options exercisable (in shares)	204,213
Weighted Average Exercise Price per Option
Beginning balance (in usd per share)	$ 7.6
Exercised (in usd per share)	1.1
Forfeited (in usd per share)	1.7
Ending balance (in usd per share)	10.3	$ 7.6
Weighted Average Exercise Price per Option (in usd per share)	$ 10.3
Weighted Average Remaining Contractual Life (Years)
Weighted Average Remaining Contractual Life (Years)	8 years 3 months 18 days	6 years 8 months 12 days
Options exercisable, Weighted Average Remaining Contractual life (Years)	8 years 3 months 18 days

STOCK BASED COMPENSATION - Rest

STOCK BASED COMPENSATION - Restricted Stock (Details) - Restricted stock awards	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Number of Unvested Shares
Beginning balance (in shares) \| shares	3,525,331
Granted (in shares) \| shares	3,962,731
Vested (in shares) \| shares	(1,516,409)
Forfeited (in shares) \| shares	(311,998)
Ending balance (in shares) \| shares	5,659,655
Weighted Average Grant Date Fair Value per Share
Beginning balance (in usd per share) \| $ / shares	$ 4.9
Granted (in usd per share) \| $ / shares	1.5
Vested (in usd per share) \| $ / shares	4.5
Forfeited (in usd per share) \| $ / shares	2.7
Ending balance (in usd per share) \| $ / shares	$ 2.7

STOCK BASED COMPENSATION - Perf

STOCK BASED COMPENSATION - Performance Shares, Outstanding Activity (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Performance-based restricted stock awards
Number of Unvested Shares
Ending balance (in shares)	3,100,000
PSUs With Total Shareholder Return Performance Objective
Number of Unvested Shares
Beginning balance (in shares)	738,751
Grants in period (in shares)	986,144
Forfeited (in shares)	(22,278)
Ending balance (in shares)	1,702,617
Weighted Average Grant Date Fair Value per Share
Beginning balance (in usd per share) \| $ / shares	$ 11.8
Granted (in usd per share) \| $ / shares	1.9
Forfeited (in usd per share) \| $ / shares	1.9
Ending balance (in usd per share) \| $ / shares	$ 6.2
EBITDA target performance share units (EBITDA PSUs)
Number of Unvested Shares
Beginning balance (in shares)	432,546
Grants in period (in shares)	986,144
Forfeited (in shares)	(22,278)
Ending balance (in shares)	1,396,412

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)		3 Months Ended		9 Months Ended
STOCKHOLDERS' EQUITY (Details) - USD ($)	Sep. 01, 2023	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Mar. 10, 2022
Loss Contingencies [Line Items]
Shares issued for litigation settlement		$ 20,000,000		$ 20,000,000
Other		$ 3,006,149		$ 3,006,149		$ 6,240,244
Authorized amount							$ 175,000,000
Shares issued in public offering (in shares)		24,600,000	100,000	63,300,000	100,000
Consideration received		$ 12,500,000	$ 200,000	$ 52,800,000	$ 200,000
Remaining authorized amount		$ 108,000,000		108,000,000
Common stock issued through At-The-Market offering				$ 200,000
Common Stock
Loss Contingencies [Line Items]
Shares issued during period, litigation settlement (in shares)		25,380,711		25,380,711
Shares issued for litigation settlement		$ 25,381		$ 25,381
Common stock issued through At-The-Market offering (in shares)				116,347
Common stock issued through At-The-Market offering				$ 116
Securities Litigation Settlement
Loss Contingencies [Line Items]
Insurance receivable		15,000,000		15,000,000
Cash paid for legal settlement				35,000,000
Other		$ 0		$ 0
Securities Litigation Settlement \| Common Stock
Loss Contingencies [Line Items]
Common stock issued through At-The-Market offering (in shares)	25,400,000
Common stock issued through At-The-Market offering	$ 20,000,000

INCOME TAXES - (Details)

INCOME TAXES - (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Deferred tax liability	$ 0	$ 0

LOSS PER SHARE - Computation of

LOSS PER SHARE - Computation of Diluted Net Loss Per Share of Common Stock, Because Their Effect was Anti-Dilutive- (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Stock-based awards and warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options and warrants excluded from diluted average shares outstanding (in shares)	10,094,146	3,364,289	10,094,146	10,129,870
Convertible notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive options and warrants excluded from diluted average shares outstanding (in shares)	0	0	0	7,833,666

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)		3 Months Ended	9 Months Ended
COMMITMENTS AND CONTINGENCIES (Details)	Jul. 28, 2023 USD ($) d	Sep. 30, 2023 USD ($)	Sep. 30, 2023 USD ($) shares
Loss Contingencies [Line Items]
Shares issued for litigation settlement		$ 20,000,000	$ 20,000,000
Case No.2:21-cv-02072 \| Settled Litigation
Loss Contingencies [Line Items]
Cash paid for legal settlement	$ 15,000,000
Shares issued for litigation settlement	$ 20,000,000
Litigation settlement, threshold trading days \| d	15
Litigation settlement, price differential to calculation price	25%
Shares issued during period, litigation settlement (in shares) \| shares			25,380,711

Debt - (Details)

Debt - (Details) - Revolving Credit Facility $ in Millions	Aug. 10, 2023 USD ($)
Debt Instrument [Line Items]
Letter of credit	$ 5
SOFR
Debt Instrument [Line Items]
Variable rate	4.86%