Revenue

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The following table summarizes the Company’s revenues disaggregated by geography and major revenue source (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2023		September 30, 2022		September 30, 2023		September 30, 2022
Geographic Markets
North America	$	(367)	$	3,971	$	6,695	$	10,164
Europe	1,032		4,250		4,948		8,779
Total	$	665	$	8,221	$	11,643	$	18,943
Product or Service
EV products	$	(1,312)	$	3,170	$	2,753	$	8,066
EV services	17		—		29		—
Electric motorcycle products and services	1,415		4,249		6,300		8,779
Electric motorcycle sponsorship services	—		—		36		—
Charging, batteries and powertrain products	482		206		1,989		583
Charging, batteries and powertrain services	—		426		30		1,205
Other revenue	63		170		506		310
Total	$	665	$	8,221	$	11,643	$	18,943

In the three months ended September 30, 2023 and 2022, the Company recognized revenue of $0.1 million and $0.2 million recorded in deferred revenue as of the beginning of the periods, respectively. In the nine months ended September 30, 2023 and 2022, the Company recognized revenue of $0.2 million and $0.9 million recorded in deferred revenue as of the beginning of the periods, respectively.

In the three months ended September 30, 2023 and 2022, the Company recorded grant revenue of $0.1 million and $0.2 million, respectively. In the nine months ended September 30, 2023 and 2022, the Company recorded grant revenue of $0.5 million and $0.3 million, respectively, in "Other revenue" in the consolidated statements of operations.

The negative revenue in North America's EV products is a result of a change in accounting estimate related to dealer sales recognized in the Solectrac business unit. Because there was no history of customer return rates when the dealer program began in 2022, Solectrac did not establish a reserve for customer returns at the end of the fiscal year. Upon establishing history of returns in 2023, and accounting for these transactions at the time of occurrence, it became apparent that a reserve should be established to allow for future returns from dealers. This resulted in a change of accounting estimate to the revenue recognized to date. The entry debited sales $2.8 million and credited cost of goods sold $1.9 million, creating a liability and asset on the balance sheet. Each quarter the reserve amounts will be assessed and adjusted according to historical return rates, dealer inventory, and current market conditions.