Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  



Disaggregation of Revenue


Revenue by type was as follows:


    Three Months Ended June 30,     Six Months Ended June 30,  
    2022     2021     2022     2021  
Revenue type                                
Product revenue   $ 918,808     $ 506,369     $ 1,838,150     $ 1,216,568  
Shipping revenue     22,752       15,698       130,255       57,681  
Miscellaneous income     40,000       -       40,000       -  
Service income     -       -       -       36,687  
Total Revenue   $ 981,560     $ 522,067     $ 2,008,405     $ 1,310,936  


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 June 30, 2022 and December 31, 2021, warranty reserves were recorded within accrued expenses of $404,557 and $240,517, respectively.