Disaggregation of revenue |
The Company is generally the principal in its customer contracts because it has control over the goods and services prior to their transfer to the customer, and as such, revenue is recognized on a gross basis. Sales and usage-based taxes are excluded from revenue. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. The table below presents the Company’s revenue disaggregated by revenue source (in thousands): | | | | | | | | | | | Three Months Ended | | | | March 31, | | | | 2023 | | 2024 | Product revenue: | | | | | | | | Volume-related | | | | | | | | Fuel sales(1) | | | $ | 106,895 | | $ | 68,203 | Change in fair value of derivative instruments(2) | | | | (2,532) | | | 1,622 | RIN Credits | | | | 4,503 | | | 8,812 | LCFS Credits | | | | 2,298 | | | (164) | AFTC (3) | | | | 4,496 | | | 5,357 | Total volume-related product revenue | | | | 115,660 | | | 83,830 | Station construction sales | | | | 4,067 | | | 5,584 | Total product revenue | | | | 119,727 | | | 89,414 | Service revenue: | | | | | | | | Volume-related, O&M services | | | | 12,044 | | | 13,735 | Other services | | | | 412 | | | 560 | Total service revenue | | | | 12,456 | | | 14,295 | Total revenue | | | $ | 132,183 | | $ | 103,709 |
(1) | Includes non-cash stock-based sales incentive contra-revenue charges associated with the Amazon Warrant. For the three months ended March 31, 2023, contra-revenue charges recognized in fuel revenue were $13.7 million. For the three months ended March 31, 2024, contra-revenue charges recognized in fuel revenue were $12.9 million. See Note 14 for more information. |
(2) | Represents changes in fair value of derivative instruments related to the Company’s commodity swap and customer fueling contracts associated with the Company’s Zero Now truck financing program. The amounts are classified as revenue because the Company’s commodity swap contracts are used to economically offset the risk associated with the diesel-to-natural gas price spread resulting from customer fueling contracts under the Company’s Zero Now truck financing program. See Note 6 for more information about these derivative instruments. |
(3) | Represents the federal alternative fuel excise tax credit (“AFTC”). See Note 19 for more information. |
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Summary of contract balances |
As of December 31, 2023 and March 31, 2024, the Company’s contract balances were as follows (in thousands): | | | | | | | | | December 31, | | March 31, | | | 2023 | | 2024 | Accounts receivable, net | | $ | 98,426 | | $ | 85,478 | | | | | | | | Contract assets - current | | $ | 7,823 | | $ | 8,501 | Contract assets - non-current | | | 2,433 | | | 2,304 | Contract assets - total | | $ | 10,256 | | $ | 10,805 | | | | | | | | Contract liabilities - current | | $ | 4,936 | | $ | 7,787 | Contract liabilities - non-current | | | 151 | | | 132 | Contract liabilities - total | | $ | 5,087 | | $ | 7,919 |
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