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Subsequent Events
9 Months Ended
Sep. 30, 2023
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 16: SUBSEQUENT EVENTS

 

The Company evaluates subsequent events that have occurred after the balance sheet date but before the unaudited condensed consolidated financial statements are issued. There are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date.

 

The Company has evaluated subsequent events through the date the condensed consolidated financial statements were issued and up to the time of filing with the Securities and Exchange Commission. The discussions that follow reflect this evaluation.

 

The Company has been sued in the Circuit Court of the State of Oregon, DWFritz Automation, LLC (“DWFritz”) v. Arcimoto et al. (Case No. 23CV45784 filed on November 7, 2023) for breach of contract. DWFritz contends that through the exchange of purchases order and related documents DWFritz agreed to provide Arcimoto for certain concept, design, and manufacturing products and services. DWFritz contends they fully performed and completed work under the purchase order through the third stage, which Arcimoto failed to pay on the contractually agreed upon due date. As of September 30, 2023, the Company had $871,722 accrued related to the amounts owed to DWFritz.

 

The Company has been sued in the state of New Jersey by Highland Capital for breach of contract. Highland Capital is seeking payment in the amount of $255,799, plus interest, attorney fees, and expense.

 

The Company has been sued by Roush Industries filed on January 31, 2024 for breach of contract. Roush Industries is seeking payment in the amount of $553,052, plus 18% interest beginning on September 13, 2023, as well as attorney fees and plaintiff costs.

 

The Company has been sued in the United States District Court for the Northern District of Illinois Eastern Division, Deutsche Leasing USA, Inc. (“Deutsche Leasing”) v Arcimoto, Inc (Case No. 24-cv-00429 filed on January 25, 2024) for breach of contract. Deutsche Leasing is seeking payment of $521,792, including accelerated future principal owed under Financing Agreement.