Quarterly report pursuant to Section 13 or 15(d)

REVENUES

v3.22.1
REVENUES
3 Months Ended
Mar. 31, 2022
Revenue from Contract with Customer [Abstract]  
REVENUES

NOTE 4. REVENUES

 

Disaggregation of Revenue

 

Revenue by type was as follows:

 

      2022       2021  
    Three Months Ended March 31,  
      2022       2021  
Revenue type                
Product revenue   $ 919,343     $ 710,199  
Shipping revenue     107,503       41,983  
Service income     -       36,687  
 Revenue   $ 1,026,846     $ 788,869  

 

Warranty Reserve

 

The Company records a reserve for warranty repairs upon the initial delivery of vehicles to its dealer network. The Company provides a product warranty on each vehicle including powertrain, battery pack and electronics package. Such warranty matches the product warranty provided by its supply chain for warranty parts for all unaltered vehicles and is not considered a separate performance obligation. The supply chain warranty does not cover warranty-based labor needed to replace a part under warranty. Warranty reserves include management’s best estimate of the projected cost of labor to repair/replace all items under warranty. The Company reserves a percentage of all dealer-based sales to cover an industry-standard warranty fund to support dealer labor warranty repairs. Such percentage is recorded as a component of cost of revenues in the statement of operations. As of March 31, 2022 and December 31, 2021, warranty reserves were recorded within accrued expenses of $330,180 and $240,517, respectively.