(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
(Address Of Principal Executive Offices) | (Zip Code) |
N/A | ||
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
Large accelerated filer | o | x | |||||||||
Non-accelerated filer | o | Smaller reporting company | |||||||||
Emerging growth company |
Page | ||||||||
December 31, 2023 | March 31, 2024 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash, current | |||||||||||
Short-term investments | |||||||||||
Accounts receivable (net of allowance for credit losses of $ | |||||||||||
Notes receivable | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total Current Assets | |||||||||||
Restricted cash, non-current | |||||||||||
Property, plant and equipment, net | |||||||||||
Land use rights, net | |||||||||||
Acquired intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other non-current assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Notes payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Advance from customers | |||||||||||
Short-term bank borrowings | |||||||||||
Income tax payables | |||||||||||
Total Current Liabilities | |||||||||||
Long-term bonds payable | |||||||||||
Long-term bank borrowings | |||||||||||
Warrant liability | |||||||||||
Share-based compensation liability | |||||||||||
Operating lease liabilities | |||||||||||
Other non-current liabilities | |||||||||||
Total Liabilities | $ | $ | |||||||||
Commitments and contingencies (Note 16) | |||||||||||
December 31, 2023 | March 31, 2024 | ||||||||||
Shareholders’ Equity | |||||||||||
Common Stock (par value of US$ | $ | $ | |||||||||
Additional paid-in capital | |||||||||||
Statutory reserves | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Equity | $ | $ | |||||||||
Total Liabilities and Equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Revenues | $ | $ | |||||||||
Cost of revenues | ( | ( | |||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
General and administrative expenses | ( | ( | |||||||||
Research and development expenses | ( | ( | |||||||||
Selling and marketing expenses | ( | ( | |||||||||
Total operating expenses | ( | ( | |||||||||
Subsidy income | |||||||||||
Loss from operations | ( | ( | |||||||||
Other income and expenses: | |||||||||||
Interest income | |||||||||||
Interest expense | ( | ( | |||||||||
Changes in fair value of warrant liability | |||||||||||
Other income (expense), net | ( | ||||||||||
Loss before provision for income taxes | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Less: net income attributable to noncontrolling interests | |||||||||||
Net loss attributable to Microvast Holdings, Inc.'s shareholders | $ | ( | $ | ( | |||||||
Net loss per common share | |||||||||||
Basic and diluted | $ | ( | $ | ( | |||||||
Weighted average shares used in calculating net loss per share of common stock | |||||||||||
Basic and diluted |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Net loss | $ | ( | $ | ( | |||||||
Foreign currency translation adjustment | ( | ||||||||||
Comprehensive loss | $ | ( | $ | ( | |||||||
Comprehensive loss attributable to non-controlling interests | ( | ||||||||||
Total comprehensive loss attributable to Microvast Holding, Inc.'s shareholders | $ | ( | $ | ( |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other Comprehensive loss | Statutory reserves | Total Microvast Holdings, Inc. Shareholders’ Equity | Non- controlling Interests | Total Equity | ||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Capital contribution from non-controlling interests holder | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with vesting of share-based awards | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | $ | $ |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional paid-in capital | Accumulated deficit | Accumulated other Comprehensive loss | Statutory reserves | Total Microvast Holdings, Inc. Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with vesting of share-based awards | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | $ | $ | $ | ( | $ | ( | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Loss/ (gain) on disposal of property, plant and equipment | ( | ||||||||||
Depreciation of property, plant and equipment | |||||||||||
Amortization of land use right and intangible assets | |||||||||||
Noncash lease expenses | |||||||||||
Share-based compensation | |||||||||||
Changes in fair value of warrant liability | ( | ( | |||||||||
(Reversal)/ allowance of credit losses | ( | ||||||||||
Product warranty | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Notes receivable | ( | ||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ||||||||||
Prepaid expenses and other current assets | ( | ||||||||||
Operating lease right-of-use assets | ( | ( | |||||||||
Other non-current assets | ( | ||||||||||
Notes payable | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Advance from customers | ( | ( | |||||||||
Accrued expenses and other liabilities | ( | ( | |||||||||
Operating lease liabilities | ( | ||||||||||
Other non-current liabilities | ( | ( | |||||||||
Net cash (used in) generated from operating activities | ( | ||||||||||
Cash flows from investing activities | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Purchase of short-term investments | ( | ||||||||||
Proceeds on disposal of property, plant and equipment | |||||||||||
Proceeds from maturity of short-term investments | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities | |||||||||||
Proceeds from borrowings | |||||||||||
Repayment of bank borrowings | ( | ||||||||||
Net cash generated from financing activities | |||||||||||
Effect of exchange rate changes | ( | ||||||||||
Decrease in cash, cash equivalents and restricted cash | ( | ( | |||||||||
Cash, cash equivalents and restricted cash at beginning of the period | |||||||||||
Cash, cash equivalents and restricted cash at end of the period | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Reconciliation to amounts on unaudited condensed consolidated balance sheets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Non-cash investing and financing activities | |||||||||||
Payable for purchase of property, plant and equipment | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
People’s Republic of China ("PRC") | $ | $ | |||||||||
Other Asia & Pacific countries | |||||||||||
Asia & Pacific | |||||||||||
Europe | |||||||||||
U.S. | |||||||||||
Total | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Accounts receivable | $ | $ | |||||||||
Allowance for credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Balance at beginning of the period | $ | $ | |||||||||
(Reversal)/ charges of expenses | ( | ||||||||||
Write off | ( | ||||||||||
Exchange difference | ( | ||||||||||
Balance at end of the period | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Work in process | $ | $ | |||||||||
Raw materials | |||||||||||
Finished goods | |||||||||||
Total | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Cost of acquired intangible assets | $ | $ | |||||||||
Less: accumulated amortization | ( | ( | |||||||||
Acquired intangible assets, net | $ | $ |
Nine months period ending December 31, 2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
2029 | |||||
Thereafter | |||||
Total | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Product warranty, current | $ | $ | |||||||||
Payables for purchase of property, plant and equipment | |||||||||||
Other current liabilities | |||||||||||
Accrued payroll and welfare | |||||||||||
Accrued expenses | |||||||||||
Interest payable | |||||||||||
Other tax payable | |||||||||||
Operating lease liabilities, current | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Balance at beginning of the period | $ | $ | |||||||||
Provided during the period | |||||||||||
Utilized during the period | ( | ( | |||||||||
Exchange difference | ( | ||||||||||
Balance at end of the period | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Product warranty – current | $ | $ | |||||||||
Product warranty – non-current | |||||||||||
Total | $ | $ |
Repayment Date | Repayment Amount | |||||||
June 10, 2024 | $ | |||||||
December 10, 2024 | $ | |||||||
June 10, 2025 | $ | |||||||
December 10, 2025 | $ | |||||||
June 10, 2026 | $ | |||||||
December 10, 2026 | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Beginning balance | $ | $ | |||||||||
Proceeds from bank borrowings | |||||||||||
Repayments of principal | ( | ||||||||||
Exchange difference | ( | ||||||||||
Ending balance | $ | $ |
Balance of bank borrowings includes: | December 31, 2023 | March 31, 2024 | |||||||||
Current | $ | $ | |||||||||
Non-current | |||||||||||
Total | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Buildings | $ | $ | |||||||||
Machinery and equipment | |||||||||||
Land use rights | |||||||||||
Construction in progress | |||||||||||
Total | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Product warranty - non-current | $ | $ | |||||||||
Deferred subsidy income- non-current | |||||||||||
Total | $ | $ |
December 31, 2023 | March 31, 2024 | ||||||||||
Long–term bonds payable | |||||||||||
Huzhou Saiyuan | $ | $ | |||||||||
Total | $ | $ |
March 31, 2024 | ||||||||
Market price of public stock | $ | |||||||
Exercise price | $ | |||||||
Expected term (years) | ||||||||
Volatility | % | |||||||
Risk-free interest rate | % | |||||||
Dividend rate | % |
Fair Value Measurement as of December 31, 2023 | |||||||||||||||||||||||
Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | |||||||||||||||||||||
Restricted cash | |||||||||||||||||||||||
Total financial asset | $ | $ | |||||||||||||||||||||
Warrant liability | $ | $ | |||||||||||||||||||||
Total financial liability | $ | $ |
Fair Value Measurement as of March 31, 2024 | |||||||||||||||||||||||
Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | |||||||||||||||||||||
Restricted cash | $ | $ | |||||||||||||||||||||
Total financial asset | $ | $ | |||||||||||||||||||||
Warrant liability | $ | $ | |||||||||||||||||||||
Total financial liability | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Balance at the beginning of the period | $ | ||||||||||
Changes in fair value | ( | ( | |||||||||
Balance at end of the period | $ | $ |
Three months ended March 31, 2024 | |||||
Cash payments for operating leases | $ | ||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ |
As of March 31, 2024 | |||||
Nine months period ending December 31, 2024 | $ | ||||
2025 | $ | ||||
2026 | $ | ||||
2027 | $ | ||||
2028 | $ | ||||
2029 | $ | ||||
Thereafter | $ | ||||
Total future lease payments | $ | ||||
Less: Imputed interest | $ | ( | |||
Present value of operating lease liabilities | $ |
Stock options life | Number of Shares | Weighted Average Exercise Price (US$) | Weighted Average Grant Date Fair Value (US$) | Weighted Average Remaining Contractual Life | ||||||||||||||||||||||
Outstanding as of December 31, 2022 | ||||||||||||||||||||||||||
Grant | ||||||||||||||||||||||||||
Forfeited | ( | |||||||||||||||||||||||||
Outstanding as of March 31, 2023 | ||||||||||||||||||||||||||
Expected to vest and exercisable as of March 31, 2023 | ||||||||||||||||||||||||||
Exercisable as of March 31, 2023 | ||||||||||||||||||||||||||
Outstanding as of December 31, 2023 | ||||||||||||||||||||||||||
Forfeited | ( | |||||||||||||||||||||||||
Outstanding as of March 31, 2024 | ||||||||||||||||||||||||||
Expected to vest and exercisable as of March 31, 2024 | ||||||||||||||||||||||||||
Exercisable as of March 31, 2024 |
Modification Date | ||||||||||||||
Expected term (years) | ~ | |||||||||||||
Volatility | % | ~ | % | |||||||||||
Risk-free interest rate | % | ~ | % | |||||||||||
Expected dividend yields |
Number of Non-Vested Shares | Weighted Average Grant Date Fair Value Per Share (US$) | |||||||||||||
Outstanding as of December 31, 2022 | ||||||||||||||
Grant | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Outstanding as of March 31, 2023 | ||||||||||||||
Outstanding as of December 31, 2023 | ||||||||||||||
Grant | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Outstanding as of March 31, 2024 |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Cost of revenues | $ | $ | |||||||||
General and administrative expenses | |||||||||||
Research and development expenses | |||||||||||
Selling and marketing expenses | |||||||||||
Construction in process | |||||||||||
Total | $ | $ |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Numerator: | |||||||||||
Net loss attributable to common stock shareholders | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Weighted average common stock used in computing basic and diluted net loss per share | |||||||||||
Basic and diluted net loss per share | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Shares issuable upon exercise of stock options | |||||||||||
Shares issuable upon vesting of non-vested shares | |||||||||||
Shares issuable upon vesting of Capped non-vested shares | |||||||||||
Shares issuable upon exercise of warrants | |||||||||||
Shares issuable upon vesting of Earn-out shares | |||||||||||
Shares issuable that may be subject to cancellation |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2024 | |||||||||||||||||||||||||
(In thousands) | Amt | % | Amt | % | ||||||||||||||||||||||
People’s Republic of China ("PRC") | $ | 32,612 | 69 | % | $ | 27,192 | 33 | % | ||||||||||||||||||
Other Asia & Pacific countries | 3,149 | 7 | % | 23,294 | 29 | % | ||||||||||||||||||||
Asia & Pacific | 35,761 | 76 | % | 50,486 | 62 | % | ||||||||||||||||||||
Europe | 10,185 | 22 | % | 28,921 | 36 | % | ||||||||||||||||||||
U.S. | 1,027 | 2 | % | 1,944 | 2 | % | ||||||||||||||||||||
Total | $ | 46,973 | 100 | % | $ | 81,351 | 100 | % |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
A | 26 | % | *% | ||||||||
B | 18 | % | 32 | % | |||||||
C | 12 | % | *% | ||||||||
D | *% | 21 | % |
Three Months Ended March 31, | $ Change | % Change | |||||||||||||||||||||
2023 | 2024 | ||||||||||||||||||||||
Amount in thousands | |||||||||||||||||||||||
Revenues | $ | 46,973 | $ | 81,351 | $ | 34,378 | 73.2 | % | |||||||||||||||
Cost of revenues | (42,115) | (64,126) | (22,011) | 52.3 | % | ||||||||||||||||||
Gross profit | 4,858 | 17,225 | 12,367 | 254.6 | % | ||||||||||||||||||
10.3 | % | 21.2 | % | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
General and administrative expenses | (20,385) | (23,794) | (3,409) | 16.7 | % | ||||||||||||||||||
Research and development expenses | (10,861) | (11,492) | (631) | 5.8 | % | ||||||||||||||||||
Selling and marketing expenses | (4,988) | (5,591) | (603) | 12.1 | % | ||||||||||||||||||
Total operating expenses | (36,234) | (40,877) | (4,643) | 12.8 | % | ||||||||||||||||||
Subsidy income | 77 | 534 | 457 | 593.5 | % | ||||||||||||||||||
Operating loss | (31,299) | (23,118) | 8,181 | (26.1) | % | ||||||||||||||||||
Other income and expenses: | |||||||||||||||||||||||
Interest income | 1,381 | 119 | (1,262) | (91.4) | % | ||||||||||||||||||
Interest expense | (459) | (1,732) | (1,273) | 277.3 | % | ||||||||||||||||||
Changes in fair value of warrant liability | 17 | 42 | 25 | 147.1 | % | ||||||||||||||||||
Other income (expense), net | 789 | (136) | (925) | (117.2) | % | ||||||||||||||||||
Loss before income tax | (29,571) | (24,825) | 4,746 | (16.0) | % | ||||||||||||||||||
Income tax expense | — | — | — | — | % | ||||||||||||||||||
Net loss | $ | (29,571) | $ | (24,825) | $ | 4,746 | (16.0) | % | |||||||||||||||
Less: net income attributable to noncontrolling interests | 10 | — | (10) | (100.0) | % | ||||||||||||||||||
Net loss attributable to Microvast Holdings, Inc.'s shareholders | $ | (29,581) | $ | (24,825) | $ | 4,756 | (16.1) | % |
Three Months Ended March 31, | |||||||||||
2023 | 2024 | ||||||||||
Amount in thousands | |||||||||||
Net cash (used in) generated from operating activities | (11,166) | 2,031 | |||||||||
Net cash used in investing activities | (35,825) | (4,525) | |||||||||
Net cash generated from financing activities | 4,384 | 6,260 |
Exhibit Number | Exhibit Title | |||||||
2.1+ | ||||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
10.1 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** |
* | Filed herewith. | ||||
** | Furnished. | ||||
+ | Certain schedules to this Exhibit have been omitted in accordance with Item 601(b)(2) of Regulation S-K. The Company hereby agrees to hereby furnish supplementally a copy of all omitted schedules to the SEC upon request. |
Dated: May 9, 2024 | MICROVAST HOLDINGS, INC. | |||||||
By: | /s/ Yang Wu | |||||||
Name: | Yang Wu | |||||||
Title: | Chief Executive Officer and Director | |||||||
By: | /s/ Nancy Smith | |||||||
Name: | Nancy Smith | |||||||
Title: | Interim Chief Financial Officer |
Date: May 9, 2024 | By: | /s/ Yang Wu | |||||||||
Name: | Yang Wu | ||||||||||
Title: | Chief Executive Officer and Director | ||||||||||
(Principal Executive Officer) |
Date: May 9, 2024 | By: | /s/ Yang Wu | |||||||||
Name: | Yang Wu | ||||||||||
Title: | Chief Executive Officer and Director | ||||||||||
(Principal Financial and Accounting Officer) |
/s/ Yang Wu | ||||||||
Name: | Yang Wu | |||||||
Title: | Chief Executive Officer and Director | |||||||
(Principal Executive Officer) |
/s/ Yang Wu | ||||||||
Name: | Yang Wu | |||||||
Title: | Chief Executive Officer and Director | |||||||
(Principal Financial and Accounting Officer) |
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 5,065 | $ 4,571 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, shares issued (in shares) | 317,196,095 | 316,694,442 |
Common stock, shares outstanding (in shares) | 315,508,595 | 315,006,942 |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (24,825) | $ (29,571) |
Foreign currency translation adjustment | (5,117) | 2,188 |
Comprehensive loss | (29,942) | (27,383) |
Comprehensive loss attributable to non-controlling interests | 0 | (22) |
Total comprehensive loss attributable to Microvast Holding, Inc.'s shareholders | $ (29,942) | $ (27,361) |
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY - USD ($) $ in Thousands |
Total |
Total Microvast Holdings, Inc. Shareholders’ Equity |
Common Stock |
Additional paid-in capital |
Accumulated deficit |
Accumulated other Comprehensive loss |
Statutory reserves |
Non- controlling Interests |
---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2022 | 307,628,511 | |||||||
Beginning balance at Dec. 31, 2022 | $ 612,977 | $ 612,977 | $ 31 | $ 1,416,160 | $ (791,165) | $ (18,081) | $ 6,032 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (29,571) | (29,581) | (29,581) | 10 | ||||
Capital contribution from non-controlling interests holder | 2,174 | 2,174 | ||||||
Issuance of common stock in connection with vesting of share-based awards (in shares) | 111,437 | |||||||
Share-based compensation | 18,061 | 18,061 | 18,061 | |||||
Foreign currency translation adjustments | 2,188 | 2,220 | 2,220 | (32) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 307,739,948 | |||||||
Ending balance at Mar. 31, 2023 | 605,829 | 603,677 | $ 31 | 1,434,221 | (820,746) | (15,861) | 6,032 | $ 2,152 |
Beginning balance (in shares) at Dec. 31, 2023 | 315,006,942 | |||||||
Beginning balance at Dec. 31, 2023 | 564,190 | 564,190 | $ 32 | 1,481,241 | (897,501) | (25,614) | 6,032 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (24,825) | (24,825) | (24,825) | |||||
Issuance of common stock in connection with vesting of share-based awards (in shares) | 501,653 | |||||||
Share-based compensation | 11,898 | 11,898 | ||||||
Foreign currency translation adjustments | (5,117) | (5,117) | ||||||
Ending balance (in shares) at Mar. 31, 2024 | 315,508,595 | |||||||
Ending balance at Mar. 31, 2024 | $ 546,146 | $ 546,146 | $ 32 | $ 1,493,139 | $ (922,326) | $ (30,731) | $ 6,032 |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Microvast, Inc. was incorporated under the laws of the State of Texas in the United States of America on October 12, 2006 and re-domiciled to the State of Delaware on December 31, 2015. On July 23, 2021 (the “Closing Date”), Microvast, Inc. and Tuscan Holdings Corp.(“Tuscan”) consummated the previously announced merger (the “Merger” or the "Business Combination"), pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc., a Delaware corporation (“Merger Sub”). Pursuant to the Merger Agreement, the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the Merger. As a result of the Merger, Tuscan was renamed “Microvast Holdings, Inc.” (the “Company”). The Merger was accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”). The Company and its subsidiaries (collectively, the “Group”) are primarily engaged in developing, manufacturing, and selling electronic power products for electric vehicles and energy storage across the globe.
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SIGNIFICANT ACCOUNTING POLICIES |
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission (the "SEC") and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2024. The financial information as of December 31, 2023 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2023. There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2023. Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability and share based compensation. All intercompany transactions and balances have been eliminated upon consolidation. Going concern The accompanying unaudited condensed consolidated financial statements of the Group have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realization of assets and the discharge of liabilities in the normal course of business. For the three months ended March 31, 2023 and 2024, the Group generated revenues of $46,973 and $81,351, gross profit of $4,858 and $17,225, respectively. Despite the above, the Group has incurred significant losses in the three months ended March 31, 2023 and 2024. For the three months ended March 31, 2023 and 2024, the Group incurred net losses of $29,571 and $24,825, respectively. As of March 31, 2024, the Group had working capital of $11,532, shareholders’ equity of $546,146, including an accumulated deficit of $922,326, and cash and cash equivalents balance of $39,451. As of March 31, 2024, the Group also had outstanding borrowings of $84,065, of which the amount to be paid in the next 12 months is $41,034, and other current liabilities of $325,586, including accounts payable, notes payable, accrued expenses and other current liabilities. Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $57,848 as of March 31, 2024. In addition, the Group launched its new 53.5Ah cell technology in 2021, which necessitated significant investment in capacity expansions in both Huzhou, China and Tennessee, United States. The 2GWh cell, module and tray expansion in Huzhou was completed in the third quarter of 2023 and is now generating revenue. The Tennessee 2GWh expansion, which utilizes the same type of production equipment as the one used in the Huzhou expansion, was originally scheduled to be completed in the fourth quarter of 2023. Management now estimates this project will not be in operation until it raises sufficient funding to meet the remaining capital expenditure needs. Due to the Tennessee capacity expansion, as of and for the three months ended March 31, 2024, the Group had long-lived assets located in the United States accounting for 51% of the Groups' long-lived assets while revenues from the United States customers only represented 2% of the Group's revenues. The Group expects that an additional $150,000 to $170,000 of funding will be needed to complete the Tennessee capacity expansion, including payment for certain accounts payable owed to suppliers in relation to assets and services provided for this expansion. As of March 31, 2024, the Group has made total capital commitments for construction and purchase of property, plant and equipment amounting to $64,960, $64,119 of which is payable within one year, and most of which relates to production equipment to be used in the Tennessee facility. These capital commitments have been included in the estimated $150,000 to $170,000 required to complete the Tennessee capacity expansion. As of March 31, 2024, the Group has outstanding payables in relation to assets and services provided for the Tennessee capacity expansion amounting to $60,189 that are currently due to its suppliers and the Group has received notice of non-payment mainly from certain of these suppliers with a total amount of $5,456. Further, there are several suppliers which have filed liens, with a total amount of $31,713 received by the Group as of March 31, 2024, mostly with the county in which the Tennessee project is situated. Several suppliers have also filed litigations alleging that the Group failed to pay for their products or services delivered on the Tennessee project. Refer to Note 16 for details. In light of the Group’s projected capital expenditures required to complete its Tennessee capacity expansion and its operating requirements under its current business plan, the Group is projecting that its existing cash and cash equivalents will not be sufficient to fund its operations and capital expenditure needs through the next twelve months from the date of issuance of its unaudited condensed consolidated financial statements. These conditions and events raise substantial doubt about the Group’s ability to continue as a going concern and the Group's ability to continue as a going concern is dependent on its ability to raise additional capital or secure financing. As of the date of issuance of the financial statements, the Group is pursuing a Proposed Term Loan, further described below. Going concern - continued Proposed Term Loan – To meet its funding needs, management is seeking to secure a loan intended to support the Tennessee capacity expansion for which the amount may be disbursed in multiple advances. As of the date of issuance of the unaudited condensed consolidated financial statements, the Group is in the process of negotiating a credit agreement of $150,000 with a third party lender (the “Proposed Term Loan”) with a maturity term of four years from the closing date. Under the Proposed Term Loan, advances are subject to the satisfaction or waiver of a number of conditions, including but not limited to the resolution of liens filed by suppliers on the Tennessee project, delivery of certain customary certifications, as well as opinions from its legal counsel as to certain matters related to the applicability and availability of certain tax credits and enforceability, the assignment to a US subsidiary of certain assets related to the Tennessee project and payment to the lender of certain upfront fees and expenses. Additionally, prior to finalizing the Proposed Term Loan, certain other arrangements have to be reached into agreement, which include but are not limited to entering into a warrant agreement with the lender to grant certain warrants for the Company's common shares and entering into a minimum $30,000 working capital loan with another lender simultaneously with the Proposed Term Loan. The $30,000 working capital loan shall be subordinated to the Proposed Term Loan and funded in full as a condition precedent to the closing of the Proposed Term Loan. The Group is in process of negotiating those arrangements. There are risks associated with the Proposed Term Loan including but not limited to: •The Group may not reach a final agreement with the lender due to the reason that the aforementioned arrangements in conjunction with the Proposed Term Loan may not be successfully made, or other causes. •The Group may not be able to meet all of the conditions precedent to get advances of the loan under the Proposed Term Loan once it entered into. •There may be a delay in getting advances of the Proposed Term Loan thereby necessitating additional bridge funding to be obtained by the Group. Besides the Proposed Term Loan, the Group is currently evaluating several different other funding initiatives. Such initiatives in consideration include the issuance of debt or equity instruments and/or the sale or disposal of certain US real estate assets that are not integral to its cell manufacturing or assembly operations. As of the date of issuance of those financial statements, the Group is currently prioritizing closing the Proposed Term Loan whilst any other funding initiatives remain under review. In addition to the above, the Group has engaged an investment bank to assess strategic alternatives, provide advisory services and to solicit additional financing from third-party sources. These plans are not final and are subject to market and other conditions not within the Group’s control. As such, there can be no assurance that the Group will be successful in obtaining sufficient funding. Should sufficient funding not be secured through the plans, or should there be a delay in the timing of securing funds through these funding initiatives, this would have adverse implications for the Group and its shareholders. In these scenarios, the Group will need to seek other options, including delaying or reducing operating and capital expenditure and the possibility of an alternative transaction or fundraising. Accordingly, management has concluded that these plans do not alleviate the substantial doubt about the Group’s ability to continue as a going concern within one year after the date the unaudited condensed consolidated financial statements are issued. Based on the factors above, a material uncertainty exists which may cast significant doubt as to whether the Group will continue as a going concern and therefore whether it will realize its assets and discharge its liabilities in the normal course of business and at the amounts stated in the financial statements. The accompanying unaudited condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. Emerging Growth Company Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies. The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments. Revenue recognition Nature of Goods and Services The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is to provide the battery products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. Disaggregation of revenue For the three months ended March 31, 2023 and 2024, the Group derived revenues from geographic regions as follows:
Contract balances Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration are unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended March 31, 2023 and 2024, the Group recognized $1,788 and $3,922 of revenue previously included in advance from customers as of January 1, 2023 and January 1, 2024, respectively. Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with a performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur. Operating leases As of March 31, 2024, the Company recorded operating lease right-of-use (ROU) assets of $18,777 and operating lease liabilities of $18,760, including current portion in the amount of $2,526, which was recorded under accrued expenses and other current liabilities on the balance sheet. The Company determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machines and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less. As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term. Warrant Liability The Company accounts for warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. As the Private Warrants (as defined in Note 11 – Warrants) meet the definition of a derivative as contemplated in ASC 815, the Company classifies the Private Warrants as liabilities. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed statements of operations. The Private Warrants are valued using a Monte Carlo simulation model on the basis of the quoted market price of Public Warrants (as defined in Note 11 – Warrants). Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on the consolidated financial statements and related disclosures. Recent accounting pronouncements not yet adopted - continued In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company do not expect a material impact to the consolidated financial statements.
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ACCOUNTS RECEIVABLE |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following:
Movement of allowance for credit losses was as follows:
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INVENTORIES, NET |
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INVENTORIES, NET | INVENTORIES, NET Inventories consisted of the following:
No provision for obsolete inventories were recognized for the three months ended March 31, 2023 and 2024.
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ACQUIRED INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUIRED INTANGIBLE ASSETS, NET | ACQUIRED INTANGIBLE ASSETS, NET
The Group recorded amortization expense of $129 and $121 for the three months ended March 31, 2023 and 2024, respectively. No impairment losses were recognized for the three months ended March 31, 2023 and 2024. The annual amortization expense for each of the five succeeding fiscal years and thereafter are as follows:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
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PRODUCT WARRANTY |
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PRODUCT WARRANTY | PRODUCT WARRANTY Movement of product warranty was as follows:
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BANK BORROWINGS |
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BANK BORROWINGS | BANK BORROWINGS On September 27, 2022, the Group entered into a $111,483 (RMB800 million) loan facilities agreement with a group of lenders led by a PRC Bank (the "2022 Facility Agreement"). The 2022 Facility Agreement had an effective drawdown period until June 9, 2023, which was extended to June 9, 2024 by a supplemental agreement signed in October 2023. Under the supplemental agreement, the Company has access to the remaining RMB300 million undrawn amount under the 2022 Facility Agreement as of March 31, 2024. The interest rate is prime plus 115 basis points where prime is based on Loan Prime Rate published by the National Inter-bank Funding Center of the PRC and is payable on a quarterly basis. The loan facilities can only be used for the manufacturing capacity expansion at the Group’s facility located in Huzhou, China. Accordingly, the Group has the balance of restricted cash of $6,171 and $2,213 as of December 31, 2023 and March 31, 2024, respectively. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without the consent of the lender, and certain customary events of default. As of March 31, 2024, the Group had outstanding borrowings of $60,244 under the 2022 Facility Agreement.
The amount of capitalized interest expenses, which was recorded in construction in progress and property, plant and equipment, was $524 and $0 for the three months ended March 31, 2023 and 2024, respectively. The Group has also entered into short-term loan agreements and bank facilities with certain Chinese banks. The original terms of these loans are with a maximum maturity of 12 months and the interest rates range from 3.40% to 4.85% per annum. Changes in bank borrowings are as follows:
Certain assets of the Group have been pledged to secure the above bank facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2023 and March 31, 2024 are as follows:
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OTHER NON-CURRENT LIABILITIES |
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Other Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES
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BONDS PAYABLE |
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Bonds Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BONDS PAYABLE | BONDS PAYABLE
On December 29, 2018, Microvast Power Systems Co., Ltd.('MPS'), one of the Company's subsidiaries, signed an agreement with Huzhou Saiyuan, an entity established by the local government, to issue convertible bonds to Huzhou Saiyuan for a total consideration of $87,776 (RMB600 million). The Company pledged its 12.39% equity holding over MPS to Huzhou Saiyuan to facilitate the issuance of these convertible bonds. If the subscribed bonds are not repaid by the maturity date, Huzhou Saiyuan has the right to dispose of the equity interests pledged by the Company in proportion to the amount of matured bonds, or convert the bonds into equity interests of MPS within 60 days after the maturity date. If Huzhou Saiyuan decides to convert the bonds into equity interests of MPS, the equity interests pledged would be released and the convertible bonds would be converted into equity interest of MPS based on an entity value of MPS of $950,000. In September 2020 and 2022, MPS entered into two supplement agreements with Huzhou Saiyuan, respectively, to change the repayment schedule as follows: (i) $14,629 (RMB100 million) was repaid, together with interest accrued, on or before November 10, 2022, (ii) $14,630 (RMB100 million) was repaid, together with interest accrued, on or before December 31, 2022, and (iii) the remaining $43,888 (RMB300 million) will be repaid, together with interest accrued, on or before January 31, 2027. The applicable interest rate will be increased to 12% if the Group is in default on the repayment of the bonds at the due date. The remaining terms and conditions of the convertible bonds were unchanged. The Company has complied in full with the amended repayment schedule and accordingly, as of March 31, 2024, the subscription and outstanding balance of the convertible bonds was $43,157 (RMB295 million).
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WARRANTS |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
WARRANTS | WARRANTS The Company assumed 27,600,000 publicly-traded warrants (“Public Warrants”) and 837,000 private placement warrants issued to Tuscan Holdings Acquisition LLC (the “Sponsor”) and EarlyBirdCapital, Inc. (“EarlyBirdCapital”) (“Private Warrants” and together with the Public Warrants, the “Warrants”) upon the Business Combination, all of which were issued in connection with Tuscan’s initial public offering (other than 150,000 Private Warrants that were issued in connection with the closing of the Business Combination) and entitle the holder to purchase one share of the Company’s Common Stock at an exercise price of $11.50 per share. During the three months ended March 31, 2024, none of the Public Warrants or the Private Warrants were exercised. The Public Warrants became exercisable 30 days after the completion of the Business Combination. The Public Warrants are only exercisable for cash, however, if the Company were to not maintain the effectiveness of the registration statement covering the shares of Common Stock issuable upon exercise of the Public Warrants, the Public Warrants would be exercisable on a net-share settlement basis. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. Once the Public Warrants became exercisable, the Company may redeem the Public Warrants: •in whole and not in part; •at a price of $0.01 per warrant; •upon not less than 30 days’ prior written notice of redemption; •if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and •if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants. The Company classified the Public Warrants as equity. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a net-share settlement basis. The Private Warrants are identical to the Public Warrants, except that the Private Warrants will be exercisable for cash or on a net-share settlement basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. In addition, so long as the Private Warrants are held by EarlyBirdCapital and its designee, the Private Warrants will expire five years from the effective date of the Business Combination. The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants. The Private Warrant liability was remeasured at fair value as of March 31, 2024, resulting in a gain of $42 for the three months ended March 31, 2024, classified within changes in fair value of warrant liability in the unaudited condensed consolidated statements of operations, respectively. The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:
The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is a blend of implied volatility from the Company’s own public warrant pricing, the average volatility of peer companies and the Company's historical volatility. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants.
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FAIR VALUE MEASUREMENT |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT Measured or disclosed at fair value on a recurring basis The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash and warrant liability at fair value on a recurring basis as of December 31, 2023 and March 31, 2024. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The fair value of the warrant liability is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liability, the Company used the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. See Note 11 – Warrants. As of December 31, 2023 and March 31, 2024, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:
Measured or disclosed at fair value on a recurring basis-continued
The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the three months ended March 31, 2023 and 2024:
Measured or disclosed at fair value on a nonrecurring basis The Group measured the long-lived assets using the income approach—discounted cash flow method, when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Group has operating leases for office spaces and warehouses. Certain leases include renewal options and/or termination options, which are factored into the Group's determination of lease payments when appropriate. Operating lease cost for the three months ended March 31, 2024 was $860, which excluded cost of short-term contracts. Short-term lease cost for the three months ended March 31, 2024 was $159. As of March 31, 2024, the weighted average remaining lease term was 10.0 years and weighted average discount rate was 5.2% for the Group's operating leases. Supplemental cash flow information of the leases were as follows:
The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of March 31, 2024:
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SHARE-BASED PAYMENT |
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED PAYMENT | SHARE-BASED PAYMENT On July 21, 2021, the Company adopted the Microvast Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), effective upon the Closing Date. The 2021 Plan provides for the grant of incentive and non-qualified stock option, restricted stock units, restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Options awarded under the 2021 Plan expire no more than 10 years from the date of grant. Concurrently with the closing of the Business Combination, the share awards granted under 2012 Share Incentive Plan of Microvast, Inc. (the “2012 Plan”) were rolled over by removing original performance conditions and converting into options and capped non-vested share units with modified vesting schedules, using the Common Exchange Ratio of 160.3. The 2021 Plan reserved 5% of the fully-diluted shares of Common Stock outstanding immediately following the Closing Date plus the shares underlying awards rolled over from the 2012 Plan for issuance in accordance with the 2021 Plan’s terms. Stock options Stock options activity for the three months ended March 31, 2023 and 2024 was as follows:
During the three months ended March 31, 2023 and 2024, the Company recorded share-based compensation expense of $13,659 and $12,028 related to the option awards, respectively. The total unrecognized equity-based compensation costs as of March 31, 2024 related to the stock options was $17,104, which is expected to be recognized over a weighted-average period of 0.4 years. The aggregate intrinsic value of the stock options as of March 31, 2024 was $0. Capped Non-vested share units The capped non-vested share units (“CRSUs”) represent rights for the holder to receive cash determined by the number of shares granted multiplied by the lower of the fair market value and the capped price, which will be settled in the form of cash payments. The CRSUs were accounted for as liability classified awards. On June 27, 2022, the Board of Directors and Compensation Committee approved a modification of the settlement terms of 20,023,699 CRSUs under the 2021 Plan from cash settlement to share settlement (the “Modification”). Pursuant to the Modification, on each vesting date, if the stock price is higher than the capped price, the number of shares to be issued will be calculated based on the following formula: Number of shares to be issued = Capped price* Number of shares vested /Vesting date stock price Capped Non-vested share units-continued If the stock price is equal to or less than the capped price, the Company will grant a fixed number of shares on each vesting date based on the vesting schedule. All other terms of the CRSUs remain unchanged. The Modification resulted in a change of the CRSUs’ classification from liability to equity, as the predominant feature of the modified CRSUs was the granting of a fixed number of shares on each vesting date instead of a fixed monetary amount. The determination of the predominant feature was based on the estimated probability of how the awards will be settled using the Monte Carlo model. At the Modification date, the Company reclassified the amounts previously recorded as a share-based compensation liability to additional paid-in capital. The modified CRSUs were accounted for as an equity award going forward from the date of the Modification with compensation expenses recognized for each tranche at the fair value measured on the modification date. At the Modification date, the Company used the Monte Carlo valuation model in determining the fair value of the CRSUs with assumptions as follows:
Expected term was the time left (in years) from the Modification date to the vesting date based on the terms of the applicable award agreements. The volatility of the underlying common stock was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the awards. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the awards. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the awards. During the three months ended March 31, 2023 and 2024, the Company recorded share-based compensation expense of $3,244 and $1,255, related to these CRSUs awards, respectively. The total unrecognized equity-based compensation costs as of March 31, 2024 related to the CRSUs was $1,557. Restricted Stock Units Following the Business Combination, the Company granted 2,721,624 restricted stock units (“RSUs”) and 2,680,372 performance-based restricted stock unit (“PSU”) awards subject to service, performance and/or market conditions. The service condition requires the participant’s continued services or employment with the Company through the applicable vesting date, and the performance condition requires the achievement of the performance criteria defined in the award agreement. The market condition is based on the Company’s TSR relative to a comparator group during a specified performance period. The fair value of RSUs is determined by the market closing price of Common Stock at the grant date and is amortized over the vesting period on a straight-line basis. The fair value of PSUs that include vesting based on market conditions are estimated using the Monte Carlo valuation method. For PSU awards with performance conditions, share-based compensation expense is only recognized if the performance conditions become probable to be satisfied. Compensation cost for these awards is amortized on a straight-line basis over the vesting period based on the grant date fair value, regardless of whether the market condition is satisfied. Accordingly, the Company recorded share-based compensation expense of $429 related to these RSUs and $(1,816) related to these PSUs during the three months ended March 31, 2024, respectively. During the three months ended March 31, 2023, the Company recorded share-based compensation expense of $447 related to these RSUs and $719 related to these PSUs, respectively. Restricted Stock Units - continued The non-vested shares activity for the three months ended March 31, 2023 and 2024 was as follows:
The total unrecognized equity-based compensation costs as of March 31, 2024 related to the non-vested shares was $4,196. The following summarizes the classification of share-based compensation:
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET LOSS PER SHARE | NET LOSS PER SHARE The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:
For the three months ended March 31, 2023 and 2024, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the periods prescribed.
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation Corporate Governance Actions The directors of Company predecessor, Tuscan (the “Tuscan Defendants”), and certain former and current Company officers have been named as defendants (the “Company Defendants”) in a purported class action lawsuit filed in the Delaware Court of Chancery (the "Court of Chancery") captioned Matt Jacob v. Stephen A. Vogel, et al., No. 2022-0600-PAF (Del. Ch.) (filed July 7, 2022). As amended, the complaint alleges that Tuscan Defendants breached their fiduciary duties in connection with Tuscan’s acquisition of Microvast, Inc., including by making inadequate disclosures concerning the projected earnings of Microvast, Inc., and asserts claims for aiding and abetting that breach against the Company defendants. The plaintiff further alleges that once the earnings of the combined company became public, the Company’s stock dropped, causing losses to investors. On December 13, 2023, in response to a stockholder litigation demand, the Company filed a petition in the Court of Chancery pursuant to Section 205 of the Delaware General Corporation Law seeking validation of an amendment to the Company’s Amended Certificate of Incorporation, the Business Combination and the issuance of the shares issued pursuant thereto, and the Company’s Second Amended and Restated Certificate of Incorporation adopted in connection with the Business Combination (collectively, the "Acts") to resolve any uncertainty with respect to those matters, which action was captioned In re Microvast Holdings Inc., C.A. No. 2023-1245-PAF. On March 18, 2024, the Court of Chancery granted the petition, validating and declaring effective each Act as of the time and date such Act was originally taken. The Company, the directors of Company predecessor, Tuscan, and certain former and current Company officers and directors have also been named as defendants in a litigation filed in the Court of Chancery captioned Denish Bhavsar v. Stephen Vogel, et al., Case No. 2024-0137-PAF (Del. Ch.) (filed Feb. 14, 2024). The plaintiff purports to assert derivative claims on behalf of the Company. The complaint alleges that the individual defendants breached their fiduciary duties in connection with Tuscan’s acquisition of Microvast, Inc., including by making inadequate disclosures concerning Microvast, Inc.’s earnings and alleged conflicts of interest that existed between certain directors and Company stockholders. The Company has received additional demands from purported Company stockholders, requesting that the Company’s Board of Directors investigate whether current and former directors and officers of the Company and its predecessors, Tuscan and Microvast Inc., breached their fiduciary duties by allegedly making material misrepresentations about inter alia (1) Microvast Inc.’s performance and financial health in connection with the merger between Tuscan and Microvast Inc., and (2) the Company’s loss of a conditional grant from the United States Department of Energy. The Company is reviewing the demands. Litigation - continued Securities Litigation The Company and certain of its officers have also been named as defendants in a putative class action complaint by a shareholder of the Company in the U.S. District Court for the Southern District of Texas under the caption Schelling v. Microvast Holdings, Inc., Case No. 4:23-cv-04565 (S.D. Tex.) (filed Dec. 5, 2023) (the "Schelling Action"). The complaint alleges that defendants violated certain federal securities laws by making misleading statements regarding the receipt of a conditional grant from the United States Department of Energy, the Company’s profitability, and the nature of Company-associated operations in China. On March 1, 2024, the court appointed Co-Lead Plaintiffs and Co-Lead Counsel for the proposed class of Company investors. On March 14, 2024, the court approved a proposed schedule for filing of an amended complaint and briefing of a motion to dismiss. Plaintiffs must file an amended complaint by May 13, 2024. Defendants must file a motion to dismiss by June 27, 2024. Briefing on the motion to dismiss will be completed by September 10, 2024. The Company and certain of its officers and directors have also been named as defendants in three derivative actions filed in the Southern District of Texas under the captions Bhavsar v. Wu et al., No. 4:24-cv-00372 (S.D. Tex.) (filed Jan. 31, 2024), Marti et al v. Wu et al, Case No. 4:24-cv-00633 (S.D. Tex.) (filed Feb. 23, 2024), Gidaro v. Wu et al, Case No. 4:24-cv-00828 (S.D. Tex.) (filed Mar. 6, 2024). The complaints allege that the officer and director defendants violated the federal securities laws by making inadequate disclosures substantially similar to those alleged in the Schelling Action. The complaints further allege that these inadequate disclosures resulted from, and constituted, breaches of the officer and director defendants’ fiduciary duties. On February 24, 2024, the court entered in an order in the first-filed case, Bhavsar v. Wu et al., No. 4:24-cv-00372, consolidating the Bhavsar case and Marti et al v. Wu et al, Case No. 4:24-cv-00633. The consolidated derivative litigation (the “Consolidated Derivative Action”) is captioned In re Microvast Holdings, Inc. Derivative Litigation, Lead Case No. 4:24-cv-00372 (S.D. Tex.). The parties in the Gidardo action filed a stipulation to consolidate the Gidaro case into the Consolidated Derivative Action. The Consolidated Derivative Action is stayed pending disposition of an anticipated motion to dismiss in the Schelling Action. Pursuant to the Company's governing documents and indemnification agreements entered into by the Company with certain of the named defendants, in the above-described actions, the Company has indemnified those defendants for all expenses and losses related to the litigation subject to the terms of those indemnification agreements. While the lawsuits are being vigorously defended, other reported lawsuits of this type have resulted in a broad range of outcomes, with each case being dependent on its own unique set of facts and circumstances. Litigation of this kind can lead to settlement negotiations, including negotiations prompted by pre-trial civil court procedures. The outcome of any litigation is inherently uncertain, and there is always the possibility that a court rules in a manner that is adverse to the interests of the Company and the individual defendants. However, the amount of any such loss in that scenario, which could be material, cannot be reasonably estimated at this time. Other Matters The Company and Microvast Energy, Inc. (“Microvast Energy”), a subsidiary of the Company, have been named as defendants in a litigation filed in the Chancery Court for the State of Tennessee under the caption Stoncor Group, Inc. v. Microvast, Inc., et al, Case No. CD-24-12 (Tenn. Ch.) (filed Mar. 18, 2024). The plaintiff alleges that the Company failed to pay it for construction work that it performed on a Microvast Energy facility in Tennessee, and seeks damages of $1,251, plus certain fees and expenses, and foreclosure on the facility to satisfy the payment allegedly owed. The Group is also involved in other litigation, claims, and proceedings. The Group evaluates the status of each legal matter and assesses the potential financial exposure. If the potential loss from any legal proceedings or litigation is considered probable and the amount can be reasonably estimated, the Group accrues a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimated. As of December 31, 2023 and March 31, 2024, based on the information currently available, the Group believes that any loss contingencies that may arise as a result of currently pending legal proceedings cannot be accurately quantified at this time and thus cannot determine whether they will have a material adverse effect on the Group’s business, results of operations, financial condition, and cash flows. Capital commitments Capital commitments for construction of property and purchase of property, plant and equipment were $64,960 as of March 31, 2024, which is mainly for the construction of lithium battery production lines. Purchase Commitments Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $57,848 as of March 31, 2024. Pledged assets Other than those disclosed in Note 8, the Group may pledge certain assets to banks to secure the issuance of bank acceptance notes for the Group. As of March 31, 2024, notes receivable from customers in the amount of $9,277 and certificate of deposits in the amount of $3,604, together with certain of our machinery and equipment with a carrying value of $26,877 has been pledged to secure the issuance of such notes. Liens and Notices of Non-payment As of March 31, 2024, the Company has received $31,713 of liens and $5,456 of notices of non-payment.
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SUBSEQUENT EVENTS |
3 Months Ended |
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Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Subsequent funding activities From first quarter end to the date of issuance of the financial statements in this Report, the Company received $1,385 of short-term bank borrowings. Liens and Notices of Non-payment From first quarter end to the date of issuance of the financial statements in this Report, the Company has received $1,760 of liens and $3,382 of notices of non-payment.
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of presentation and use of estimates | Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission (the "SEC") and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2023 included in the Company’s Annual Report on Form 10-K filed with the SEC on April 1, 2024, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2024. The financial information as of December 31, 2023 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2023. There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2023. Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability and share based compensation. All intercompany transactions and balances have been eliminated upon consolidation.
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Emerging Growth Company | Emerging Growth Company Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies. The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.
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Revenue recognition | Revenue recognition Nature of Goods and Services The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is to provide the battery products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. Contract balances Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration are unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended March 31, 2023 and 2024, the Group recognized $1,788 and $3,922 of revenue previously included in advance from customers as of January 1, 2023 and January 1, 2024, respectively.
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Share-based compensation | Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with a performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur.
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Operating leases | Operating leases As of March 31, 2024, the Company recorded operating lease right-of-use (ROU) assets of $18,777 and operating lease liabilities of $18,760, including current portion in the amount of $2,526, which was recorded under accrued expenses and other current liabilities on the balance sheet. The Company determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machines and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less. As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term.
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Warrant Liability | Warrant Liability The Company accounts for warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. As the Private Warrants (as defined in Note 11 – Warrants) meet the definition of a derivative as contemplated in ASC 815, the Company classifies the Private Warrants as liabilities. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed statements of operations. The Private Warrants are valued using a Monte Carlo simulation model on the basis of the quoted market price of Public Warrants (as defined in Note 11 – Warrants).
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Recent accounting pronouncements adopted and not yet adopted | Recent accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 intends to improve reportable segment disclosure requirements, enhance interim disclosure requirements and provide new segment disclosure requirements for entities with a single reportable segment. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods with fiscal years beginning after December 15, 2024. ASU 2023-07 is to be adopted retrospectively to all prior periods presented. The Company is currently assessing the impact this guidance will have on the consolidated financial statements and related disclosures. Recent accounting pronouncements not yet adopted - continued In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Company is currently assessing the impact of this guidance, however, the Company do not expect a material impact to the consolidated financial statements.
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Debt instrument term, description | The original terms of these loans are with a maximum maturity of 12 months and the interest rates range from 3.40% to 4.85% per annum |
Public Warrants | Once the Public Warrants became exercisable, the Company may redeem the Public Warrants: •in whole and not in part; •at a price of $0.01 per warrant; •upon not less than 30 days’ prior written notice of redemption; •if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and •if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.
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SIGNIFICANT ACCOUNTING POLICIES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | For the three months ended March 31, 2023 and 2024, the Group derived revenues from geographic regions as follows:
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ACCOUNTS RECEIVABLE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable consisted of the following:
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Schedule of Allowance for Credit Losses | Movement of allowance for credit losses was as follows:
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INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following:
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ACQUIRED INTANGIBLE ASSETS, NET (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets |
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The annual amortization expense for each of the five succeeding fiscal years and thereafter are as follows:
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Other Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities |
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PRODUCT WARRANTY (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Movement of Product Warranty | Movement of product warranty was as follows:
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Schedule of Warranty Cost |
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BANK BORROWINGS (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bank Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Bank Borrowings Repayment |
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Schedule of Bank Borrowings | Changes in bank borrowings are as follows:
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Schedule of Banking Facilities and Aggregate Carrying Amount | The aggregate carrying amount of the assets pledged by the Group as of December 31, 2023 and March 31, 2024 are as follows:
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OTHER NON-CURRENT LIABILITIES (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Non-Current Liabilities |
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BONDS PAYABLE (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Bonds Payable |
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WARRANTS (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option | The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:
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FAIR VALUE MEASUREMENT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | As of December 31, 2023 and March 31, 2024, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:
Measured or disclosed at fair value on a recurring basis-continued
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Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability | The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the three months ended March 31, 2023 and 2024:
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information of the leases were as follows:
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Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis | The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of March 31, 2024:
|
SHARE-BASED PAYMENT (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM | Stock options activity for the three months ended March 31, 2023 and 2024 was as follows:
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Schedule of Stock Option Activity Plan | At the Modification date, the Company used the Monte Carlo valuation model in determining the fair value of the CRSUs with assumptions as follows:
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Schedule Non-vested Shares Activity | The non-vested shares activity for the three months ended March 31, 2023 and 2024 was as follows:
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Schedule of Classification of Stock-based Compensation | The following summarizes the classification of share-based compensation:
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NET LOSS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Computation of Basic and Diluted Net Loss Per Share | The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:
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Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share | For the three months ended March 31, 2023 and 2024, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the periods prescribed.
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SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Significant Accounting Policies [Line Items] | ||
Revenue | $ 81,351 | $ 46,973 |
People’s Republic of China ("PRC") | ||
Significant Accounting Policies [Line Items] | ||
Revenue | 27,192 | 32,612 |
Other Asia & Pacific countries | ||
Significant Accounting Policies [Line Items] | ||
Revenue | 23,294 | 3,149 |
Asia & Pacific | ||
Significant Accounting Policies [Line Items] | ||
Revenue | 50,486 | 35,761 |
Europe | ||
Significant Accounting Policies [Line Items] | ||
Revenue | 28,921 | 10,185 |
U.S. | ||
Significant Accounting Policies [Line Items] | ||
Revenue | $ 1,944 | $ 1,027 |
ACCOUNTS RECEIVABLE- Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 128,608 | $ 143,288 |
Allowance for credit losses | (5,065) | (4,571) |
Accounts receivable, net | $ 123,543 | $ 138,717 |
ACCOUNTS RECEIVABLE - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of the period | $ 4,571 | $ 4,407 |
(Reversal)/ charges of expenses | 578 | (1,094) |
Write off | 0 | (66) |
Exchange difference | (84) | 23 |
Balance at end of the period | $ 5,065 | $ 3,270 |
INVENTORIES, NET - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Work in process | $ 82,681 | $ 86,379 |
Raw materials | 37,043 | 35,867 |
Finished goods | 17,606 | 27,503 |
Total | $ 137,330 | $ 149,749 |
INVENTORIES, NET - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Inventory Disclosure [Abstract] | ||
Provision for obsolete inventories | $ 0 | $ 0 |
ACQUIRED INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Cost of acquired intangible assets | $ 5,431 | $ 5,472 |
Less: accumulated amortization | (2,446) | (2,336) |
Total | $ 2,985 | $ 3,136 |
ACQUIRED INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 121 | $ 129 |
Impairment of intangible assets (excluding goodwill) | $ 0 | $ 0 |
ACQUIRED INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Nine months period ending December 31, 2024 | $ 362 | |
2025 | 480 | |
2026 | 478 | |
2027 | 472 | |
2028 | 382 | |
2029 | 376 | |
Thereafter | 435 | |
Total | $ 2,985 | $ 3,136 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Accrued Liabilities and Other Liabilities [Abstract] | ||
Product warranty, current | $ 13,401 | $ 13,738 |
Payables for purchase of property, plant and equipment | 92,817 | 96,350 |
Other current liabilities | 16,666 | 14,312 |
Accrued payroll and welfare | 5,966 | 8,089 |
Accrued expenses | 4,872 | 6,224 |
Interest payable | 411 | 41 |
Other tax payable | 572 | 7,117 |
Operating lease liabilities, current | 2,526 | 2,413 |
Total | $ 137,231 | $ 148,284 |
PRODUCT WARRANTY - Schedule of Movement of Product Warranty (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of the period | $ 35,217 | $ 42,060 | ||
Provided during the period | $ 3,269 | $ 2,530 | ||
Utilized during the period | (2,448) | (5,172) | ||
Exchange difference | (590) | 192 | ||
Balance at end of the period | $ 35,448 | $ 39,610 |
PRODUCT WARRANTY - Schedule of Warranty Cost (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Product Warranties Disclosures [Abstract] | ||
Product warranty – current | $ 13,401 | $ 13,738 |
Product warranty – non-current | 22,047 | 21,479 |
Total | $ 35,448 | $ 35,217 |
BANK BORROWINGS - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Bank Borrowing [Roll Forward] | ||||
Beginning balance | $ 79,153 | $ 46,395 | ||
Proceeds from bank borrowings | $ 18,780 | $ 4,384 | ||
Repayments of principal | (12,520) | 0 | ||
Exchange difference | (1,348) | 185 | ||
Ending balance | 84,065 | $ 50,964 | ||
Current | 41,034 | 35,392 | ||
Non-current | 43,031 | 43,761 | ||
Total | $ 84,065 | $ 79,153 |
BANK BORROWINGS - Schedule of Banking Facilities and Aggregate Carrying Amount (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Bank Borrowings [Abstract] | ||
Buildings | $ 120,960 | $ 124,565 |
Machinery and equipment | 7,768 | 0 |
Land use rights | 11,712 | 11,984 |
Construction in progress | 599 | 0 |
Total | $ 141,039 | $ 136,549 |
OTHER NON-CURRENT LIABILITIES - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Liabilities, Noncurrent [Abstract] | ||
Product warranty - non-current | $ 22,047 | $ 21,479 |
Deferred subsidy income- non-current | 3,191 | 3,382 |
Total | $ 25,238 | $ 24,861 |
BONDS PAYABLE - Schedule of Bonds Payable (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Schedule of Bonds Payable [Line Items] | ||
Long-term bonds payable, Total | $ 43,157 | $ 43,157 |
Huzhou Saiyuan | ||
Schedule of Bonds Payable [Line Items] | ||
Long-term bonds payable, Total | $ 43,157 | $ 43,157 |
BONDS PAYABLE - Narrative (Details) $ in Thousands, ¥ in Millions |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2027
USD ($)
|
Jan. 31, 2027
CNY (¥)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
CNY (¥)
|
Nov. 10, 2022
USD ($)
|
Nov. 10, 2022
CNY (¥)
|
Mar. 31, 2024
USD ($)
|
Mar. 31, 2024
CNY (¥)
|
Dec. 29, 2018
USD ($)
|
Dec. 29, 2018
CNY (¥)
|
|
Schedule of Bonds Payable [Line Items] | ||||||||||
Bond loan | $ 87,776 | ¥ 600 | ||||||||
Equity holding pledged percentage | 12.39% | 12.39% | ||||||||
Debt instrument, convertible amount, subsidiary value threshold | $ 950,000 | |||||||||
Repayments of convertible debt (in dollars and yuan renminbi) | $ 14,630 | ¥ 100 | $ 14,629 | ¥ 100 | ||||||
Debt instrument, interest rate, stated percentage | 12.00% | 12.00% | ||||||||
Subscribed amount (in dollars and yuan renminbi) | $ 43,157 | ¥ 295 | ||||||||
Forecast | ||||||||||
Schedule of Bonds Payable [Line Items] | ||||||||||
Repayments of convertible debt (in dollars and yuan renminbi) | $ 43,888 | ¥ 300 |
WARRANTS - Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option (Details) - Warrants |
Mar. 31, 2024
$ / shares
|
---|---|
Warrants [Line Items] | |
Market price of public stock (in dollars per share) | $ 0.84 |
Exercise price (in dollars per share) | $ 11.50 |
Expected term (years) | 2 years 3 months 25 days |
Volatility | 82.92% |
Risk-free interest rate | 4.42% |
Dividend rate | 0.00% |
FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Level 3 Warrant Liability [Roll Forward] | ||
Balance at the beginning of the period | $ 67 | $ 126 |
Changes in fair value | (42) | (17) |
Balance at end of the period | $ 25 | $ 109 |
LEASES - Narrative (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Leases [Abstract] | |
Operating lease, cost | $ 860 |
Short-term lease, cost | $ 159 |
Operating lease, weighted average remaining lease term | 10 years |
Operating lease, weighted average discount rate, percent | 5.20% |
LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2024
USD ($)
| |
Leases [Abstract] | |
Cash payments for operating leases | $ 869 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 466 |
LEASES - Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis (Details) $ in Thousands |
Mar. 31, 2024
USD ($)
|
---|---|
Leases [Abstract] | |
Nine months period ending December 31, 2024 | $ 2,661 |
2025 | 2,810 |
2026 | 2,539 |
2027 | 2,396 |
2028 | 1,820 |
2029 | 1,628 |
Thereafter | 9,901 |
Total future lease payments | 23,755 |
Less: Imputed interest | (4,995) |
Present value of operating lease liabilities | $ 18,760 |
SHARE-BASED PAYMENT - Schedule of Stock Option Activity Plan (Details) - Capped Non-vested Shares Units |
Jun. 27, 2022 |
---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility rate, minimum | 50.93% |
Volatility rate, maximum | 73.89% |
Risk-free interest rate, minimum | 1.15% |
Risk-free interest rate, maximum | 3.05% |
Expected dividend yields | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 25 days |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (years) | 2 years 25 days |
SHARE-BASED PAYMENT - Schedule of Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Share-Based Payment Arrangement [Abstract] | ||
Cost of revenues | $ 1,138 | $ 1,504 |
General and administrative expenses | 8,167 | 12,168 |
Research and development expenses | 1,777 | 3,014 |
Selling and marketing expenses | 783 | 1,243 |
Construction in process | 31 | 140 |
Total | $ 11,896 | $ 18,069 |
NET LOSS PER SHARE - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerator: | ||
Net loss attributable to common stock shareholders | $ (24,825) | $ (29,581) |
Denominator: | ||
Weighted average shares used in calculating net loss per share of common stock, basic (in shares) | 315,367,121 | 307,714,841 |
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares) | 315,367,121 | 307,714,841 |
Basic net loss per share (in dollars per share) | $ (0.08) | $ (0.10) |
Diluted net loss per share (in dollars per share) | $ (0.08) | $ (0.10) |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Mar. 18, 2024 |
Dec. 31, 2023 |
---|---|---|---|
Commitments and Contingencies (Details) [Line Items] | |||
Loss contingency, damages sought, value | $ 1,251 | ||
Property, plant and equipment, net | $ 616,508 | $ 620,667 | |
Liens amount | 31,713 | ||
Debt instrument, debt default, amount | 5,456 | ||
Bank Acceptance Note | |||
Commitments and Contingencies (Details) [Line Items] | |||
Receivables from customers | 9,277 | ||
Property, plant and equipment, net | 26,877 | ||
Notes Payable, Other Payables | |||
Commitments and Contingencies (Details) [Line Items] | |||
Certificates of deposit, at carrying value | 3,604 | ||
Inventories | |||
Commitments and Contingencies (Details) [Line Items] | |||
Purchase obligation | $ 57,848 |
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands |
1 Months Ended | |
---|---|---|
Mar. 31, 2024 |
May 09, 2024 |
|
Subsequent Event [Line Items] | ||
Liens amount | $ 31,713 | |
Debt instrument, debt default, amount | $ 5,456 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Proceeds from short-term debt | $ 1,385 | |
Liens amount | 1,760 | |
Debt instrument, debt default, amount | $ 3,382 |
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