Notes Receivable from Third Parties

12 Months Ended

Dec. 31, 2023

The following table provides certain information related to notes receivable consists of the following (in thousands):


	As of December 31, 2023
	Cost		Repayment		Unrealized Gains		Unrealized Losses		Impairment		Estimated Fair Value
Green Power Motor Company (d)		45		(3)		—		—		—		42
Total notes receivable	$	45	$	(3)	$	—	$	—	$	—	$	42


	As of December 31, 2022
	Cost		Interest		Unrealized Gains		Unrealized Losses		Impairment		Estimated Fair Value
VIA Note (a)	$	63,218	$	2,603	$	—	$	—	$	(34,213)	$	31,608
VIA Note 2 (a)		14,468		233		—		—		(14,701)		—
Inobat Note (b)		11,819		863		—		(1,083)		(11,599)		—
Green Power Motor Company (d)		45		—		—		—		—		45
Total notes receivable	$	89,550	$	3,699	$	—	$	(1,083)	$	(60,513)	$	31,653

(a)VIA Secured Promissory Notes

On August 30, 2021, the Company invested $42.5 million in VIA, in the form of a convertible promissory note. With a few amendments, the principal amount of the convertible promissory note was $63.2 million as of December 31, 2022. The note was secured by the certain assets and rights of VIA, bore interest at an annual rate of 4.0% and the scheduled maturity date was the earlier of the closing date of the acquisition or one year after the agreement is terminated according to its terms.

The convertible promissory note contained certain customary events of default and other rights and obligations of the parties. The Company expects to convert this promissory note in conjunction with the closing of the acquisition of VIA. Management assessed the probability of closing the acquisition in determining the recoverability of the promissory note.

The Company entered into a secured promissory note (VIA Note-2) of $2.2 million with VIA on May 20, 2022. With a few amendments, the principal amount of the convertible promissory note was 14.5 million as of December 31, 2022, including the Company issuing 0.1 millions shares to settle the debt owed by VIA Motors and recording as notes receivable due from VIA. The Company entered into an amendment of the secured promissory note during the second quarter of 2022 to provide a note that was secured by the certain assets and rights of VIA, bore interest at an annual rate of 4.0%. The principal and interest is due and payable in the event of the termination of the merger agreement.

The following table summarizes the activity related to the notes receivable reserve (in thousands):


Balance at December 31, 2021	$	—
Addition	60,513
Balance at December 31, 2022	60,513
Write-offs	(60,857)
Effect of change in foreign currency exchange rates	344
Balance at December 31 2023	$	—

During year ended December 31, 2022, the Company experienced significant delays in the closing of the acquisition of VIA and in the fourth quarter of 2022 withdrew the S-4 resulting in an inability to close the acquisition in the manner originally contemplated. Consequently, the outstanding balances were re-evaluated as to recovery and the balances adjusted to estimated recovery values inclusive of the risks associated with the consummation of the acquisition and the credit risks in the event of an unsuccessful closing. During the year ended December 31, 2023, the Company completed the VIA acquisition as of January 31, 2023 and the notes value extended to VIA Motors prior to the closing of the acquisition were written off against the notes receivable reserve at the time of the acquisition to reflect the value attributable to the credits included in the closing statement, VIA notes including additional funding of $0.8 million on

January 17, 2023, were settled and included in the consideration transferred at fair value. An additional impairment of $27.4 million was recorded in "Asset impairments" in the consolidated statement of operations for the three months ended March 31, 2023 upon settlement.

(b)Inobat Convertible Promissory Note

On December 24, 2021, the Company invested €10.0 million ($11.4 million) in Inobat via a convertible promissory note, was due December 24, 2022. Inobat specializes in the research, development, manufacture, and provision of innovative electric batteries custom-designed to meet the specific requirements of global mainstream and specialist OEMs within the automotive, commercial vehicle, motorsport, and aerospace sectors. Inobat is a European based battery manufacturer, that has a battery research and development facility and pilot line under development in Slovakia.

The principal amount of the convertible promissory note is €10.0 million ($11.4 million) is unsecured, bears interest at an annual rate of 8.0%, and the scheduled maturity date was December 28, 2022.

The convertible promissory note contains certain customary events of default and other rights and obligations of the parties.

The loan due from Inobat matured in December 2022 without any receipt of payment, in March 2023, the Company extended the maturity date of the loan to May 2023 the Company determined that the Inobat note was fully impaired and recorded an impairment loss of $11.6 million recorded in "Asset impairments" in the year ended December 31, 2022. The Company entered into a settlement with Inobat in the year ended December 31, 2023 and received $5.3 million and wrote off the note against notes receivable reserve.

(c)Green Power Motor Company

On July 29, 2022, the Company loaned $45.0 thousand to Green Power Motor Company. Interest will accrue on the outstanding principal at a rate of fixed interest rate per annum equal to 7.50%. Borrower will make 80 consecutive monthly payments commencing on September 1, 2022.