Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company is not a party to any material legal proceedings and is not aware of any pending or threatened material claims. From time to time however, the Company may be subject to various legal proceedings and claims that arise in the ordinary course of its business activities.

In July 2022, the Company began accepting pre-ordered deposits of $5,000 or equivalent currency for Fisker Ocean Ones, a limited-edition trim level of the Fisker Ocean. All 5,000 Fisker Ocean Ones have been pre-ordered with a payment of $5,000 or equivalent currency for each order. The deposited amounts will be applied to the sales price of the vehicle and

recognized as revenue when the vehicle is sold and delivered to the customer. The Company has an agreement with a financial institution that holds cash received from pre-order deposits made through credit card transactions until the vehicle is delivered to the customer at which time the cash is deposited into the Company's bank account and available for its use. Deposits paid directly to the Company via ACH or other direct payment mechanism are received in the Company bank account and available for its use within 15 days after the end of the month in which the pre-order was placed.

On April 04, 2022, the Company entered into a lease agreement with Shamrock (La Palma) Properties II, LLC as a tenant at 14 Centerpointe Drive located in the City of La Palma, California. The agreement provides for, among other things, (a) approximately 78,980 of rentable square feet (b) a lease commencement date on May 1, 2022, and will continue for 7 years thereafter, with an option to extend the term by one additional period of 5 years (c) minimum base monthly rental amount of $78,980. Monthly rental payments are adjusted annually based on a pre-determined schedule and are recognized on a straight-line basis over the term of the lease. Upon commencement of the lease, the Company recognized a non-cash right-of-use asset and corresponding lease liability of $11.1 million using an estimate of its incremental borrowing rate of 6.00%.