10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

______________________

FORM 10-Q

______________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission file number: 001-39160

______________________

FISKER INC.

(Exact name of registrant as specified in its charter)

______________________

Delaware	82-3100340
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1888 Rosecrans Avenue, Manhattan Beach, CA 90266

(Address of principal executive offices)

(833) 434-7537

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

______________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock, par value of $0.00001 per share	FSR	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

______________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 3, 2022, the registrant had 179,556,338 shares of Class A Common Stock and 132,354,128 shares of Class B Common Stock, par value $0.00001 per share, outstanding.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION	5
Item 1. Financial Statements.	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	25
Item 3. Quantitative and Qualitative Disclosures About Market Risk.	38
Item 4. Controls and Procedures	38
PART II – OTHER INFORMATION	39
Item 1. Legal Proceedings.	39
Item 1A. Risk Factors.	39
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	40
Item 3. Defaults Upon Senior Securities.	40
Item 4. Mine Safety Disclosures	40
Item 5. Other Information.	40
Item 6. Exhibits.	40
SIGNATURE	41

2

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are forward-looking and as such are not historical facts. These forward-looking statements include, without limitation, statements regarding future financial performance, business strategies, expansion plans, future results of operations, estimated revenues, losses, projected costs, prospects, plans and objectives of management. These forward-looking statements are based on our management’s current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this report, words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “would” and variations thereof and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this report may include, for example, statements about:

•our ability to grow and manage growth profitably;

•our ability to continue to enter into binding contracts with OEMs or tier-one suppliers in order to execute on our business plan;

•our ability to execute our business model, including market acceptance of our planned products and services;

•our expansion plans and opportunities;

•our expectations regarding future expenditures;

•our ability to raise capital in the future;

•our ability to attract and retain qualified employees and key personnel;

•the possibility that we may be adversely affected by other economic, business or competitive factors;

•changes in applicable laws or regulations;

•the outcome of any known and unknown litigation and regulatory proceedings;

•our ability to maintain the listing of our Class A common stock, par value $0.00001 per share ("Class A Common Stock") on the New York Stock Exchange ("NYSE");

•the possibility that COVID-19, the Russian-Ukraine war or rising inflation may adversely affect the results of our operations, financial position and cash flows; and

•other factors described in this report, including those described in the section entitled “Risk Factors” under Part I, Item 1A of our most recent Annual Report on Form 10-K for the year ended December 31, 2021 filed with the U.S. Securities and Exchange Commission (“SEC”) on February 28, 2022, as supplemented by Quarterly Reports on Form 10-Q subsequently filed with the SEC.

The forward-looking statements contained in this report are based on our current expectations and beliefs concerning future developments and their potential effects on our business. There can be no assurance that future developments affecting our business will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the section entitled “Risk Factors” under Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 and those factors described in the section entitled “Risk Factors” under Part II, Item 1A of this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the effect of all such risk factors on our business or the extent to which any factor or combination of factors may cause actual results to differ materially from those contained in any forward-looking statements. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

The forward-looking statements made by us in this report speak only as of the date of this report. Except to the extent required under the federal securities laws and rules and regulations of the SEC, we disclaim any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect

3

the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

WEBSITE AND SOCIAL MEDIA DISCLOSURE

We use our website (www.fiskerinc.com) and various social media channels as a means of disclosing information about the company and its products to its customers, investors and the public (e.g., @fiskerinc, @fiskerofficial, #fiskerinc, #henrikfisker and #fisker on Twitter, Facebook, Instagram, YouTube, TikTok and LinkedIn). The information posted on social media channels is not incorporated by reference in this report or in any other report or document we file with the SEC. The information we post through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about the Company when you enroll your e-mail address by visiting the “Investor Email Alerts” section of our website at www.investors.fiskerinc.com. Accordingly, investors should monitor these channels, in addition to following our press releases, SEC filings and public conference calls and webcasts. In addition, you may automatically receive e-mail alerts and other information about the Company when you enroll your e-mail address by visiting the “Investor Email Alerts” section of our website at www.investors.fiskerinc.com.

ADDITIONAL INFORMATION

Unless the context indicates otherwise, references in this report to the “Company,” “Fisker,” “we,” “us,” “our” and similar terms refer to Fisker Inc. (f/k/a Spartan Energy Acquisition Corp.) and its consolidated subsidiaries (including Fisker Group Inc. or Legacy Fisker). References to “Spartan” refer to Spartan Energy Acquisition Corp., our predecessor company prior to the consummation of the Business Combination (as defined below).

4

PART I—FINANCIAL INFORMATION

Item 1. Financial Statements.

Fisker Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(In thousands, except share data)

(Unaudited)

	As of September 30, 2022		As of December 31, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	824,696	$	1,202,439
Prepaid expenses and other current assets	35,039		30,423
Equity investment	4,360		—
Total current assets	864,095		1,232,862
Non-current assets:
Property and equipment, net	235,585		85,643
Intangible assets	251,609		231,525
Right-of-use assets, net	27,804		18,285
Other non-current assets	32,963		24,637
Total non-current assets	547,961		360,090
TOTAL ASSETS	$	1,412,056	$	1,592,952
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	18,277	$	28,143
Accrued expenses	99,433		79,634
Lease liabilities	5,876		4,552
Total current liabilities	123,586		112,329
Non-current liabilities:
Customer deposits	14,153		6,300
Lease liabilities	23,234		14,933
Convertible senior notes	660,395		659,348
Total non-current liabilities	697,782		680,581
Total liabilities	821,368		792,910
COMMITMENTS AND CONTINGENCIES (Note 13)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 15,000,000 shares authorized; no shares issued and outstanding as of September 30, 2022 and December 31, 2021	—		—
Class A Common stock, $0.00001 par value; 750,000,000 shares authorized; 179,493,167 and 164,377,306 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively	2		2
Class B Common stock, $0.00001 par value; 150,000,000 shares authorized; 132,354,128 shares issued and outstanding as of September 30, 2022 and December 31, 2021	1		1
Additional paid-in capital	1,587,322		1,419,284
Accumulated deficit	(996,637)		(619,245)
Total stockholders’ equity	590,688		800,042
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,412,056	$	1,592,952

The accompanying notes are an integral part of these consolidated financial statements.

5

Fisker Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

For the Three and Nine Months ended September 30, 2022 and 2021

(In thousands, except share and per share data)

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	14	$	15	$	36	$	65
Cost of goods sold	6		16		25		47
Gross margin	8		(1)		11		18
Operating costs and expenses:
General and administrative	22,102		10,273		61,615		24,012
Research and development	117,885		99,291		290,505		171,807
Total operating costs and expenses	139,987		109,564		352,120		195,819
Loss from operations	(139,979)		(109,565)		(352,109)		(195,801)
Other income (expense):
Other income (expense), net	270		(84)		(553)		(98)
Interest income	3,075		155		4,693		415
Interest expense	(4,693)		(2,147)		(13,827)		(2,147)
Change in fair value of derivatives	—		—		—		(138,436)
Foreign currency gain (loss)	(7,285)		1,797		(9,956)		3,158
Unrealized loss recognized on equity securities	(730)		—		(5,640)		—
Total other income (expense)	(9,363)		(279)		(25,283)		(137,108)
Net loss	$	(149,342)	$	(109,844)	$	(377,392)	$	(332,909)
Net loss per common share
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(0.49)	$	(0.37)	$	(1.26)	$	(1.15)
Weighted average shares outstanding
Weighted average Class A and Class B Common shares outstanding- Basic and Diluted	303,224,595		296,133,530		299,462,065		290,445,265

The accompanying notes are an integral part of these consolidated financial statements.

6

Fisker Inc. and Subsidiaries

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share data)

(Unaudited)

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Stockholders’ Deficit
Three Months Ended September 30, 2022	Shares	Amount		Shares	Amount
Balance at June 30, 2022	166,279,680	$	2	132,354,128	$	1	$	1,453,662	$	(847,295)	$	606,370
Stock-based compensation	—	—		—	—		11,166		—		$	11,166
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	110,279	—		—	—		41		—		$	41
Recognition of Magna warrants	—	—		—	—		6,695		—		$	6,695
Shares issued under "At-the-market" offering, net of stock issuance costs	13,103,208	—		—	—		115,758		—		$	115,758
Net Loss	—	—		—	—		—		(149,342)		$	(149,342)
Balance at September 30, 2022	179,493,167	$	2	132,354,128	$	1	$	1,587,322	$	(996,637)	$	590,688

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Stockholders’ Deficit
Nine Months Ended September 30, 2022	Shares	Amount		Shares	Amount
Balance at December 31, 2021	164,377,306	$	2	132,354,128	$	1	$	1,419,284	$	(619,245)	$	800,042
Stock-based compensation	—	—		—	—		17,426		—		17,426
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	624,502	—		—	—		556		—		556
Recognition of Magna warrants	—	—		—	—		20,084		—		20,084
Shares issued under "At-the-market" offering, net of stock issuance costs	14,491,359	—		—	—		129,972		—		129,972
Net Loss	—	—		—	—		—		(377,392)		(377,392)
Balance at September 30, 2022	179,493,167	$	2	132,354,128	$	1	$	1,587,322	$	(996,637)	$	590,688

The accompanying notes are an integral part of these consolidated financial statements.

Fisker Inc. and Subsidiaries

7

Condensed Consolidated Statements of Stockholders’ Equity

(In thousands, except share data)

(Unaudited)

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated deficit		Stockholders’ Deficit
Three Months Ended September 30, 2021	Shares	Amount		Shares	Amount
Balance at June 30, 2021	163,711,901	$	2	132,354,128	$	1	$	1,481,556	$	(370,969)	$	1,110,590
Stock-based compensation	—	—		—	—		1,043		—		1,043
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	104,427	—		—	—		35		—		35
Purchase of capped call options	—	—		—	—		(96,788)		—		(96,788)
Net loss	—	—		—	—		—		(109,844)		(109,844)
Balance at September 30, 2021	163,816,328	$	2	132,354,128	$	1	$	1,385,846	$	(480,813)	$	905,036

	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Receivable For Warrant Exercises		Accumulated Deficit		Stockholders’ Deficit
Nine Months Ended September 30, 2021	Shares	Amount		Shares	Amount
Balance at December 31, 2020	144,912,362	$	1	132,354,128	$	1	$	1,055,128	$	(96)	$	(147,904)	$	907,130
Stock-based compensation	—	—		—	—		4,078		—		—		4,078
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	1,095,446	—		—	—		(53)		—		—		(53)
Exercise of warrants	27,751,587	1		—	—		365,463		458		—		365,922
Shares surrendered upon exercise of warrants	(9,943,067)	—		—	—		—		(384)		—		(384)
Purchase of capped call option	—	—		—	—		(96,788)		—		—		(96,788)
Stock issuance costs and redemption of unexercised warrants	—	—		—	—		(22)		22		—		—
Recognition of Magmna warrants	—	—		—	—		58,040		—		—		58,040
Net loss	—	—		—	—		—		—		(332,909)		(332,909)
Balance at September 30, 2021	163,816,328	$	2	132,354,128	$	1	$	1,385,846	$	—	$	(480,813)	$	905,036

8

Fisker Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(In thousands, except share data)

(Unaudited)

	Nine Months Ended September 30,
	2022		2021
Cash Flows from Operating Activities:
Net loss	$	(377,392)	$	(332,909)
Reconciliation of net loss to net cash used in operating activities:
Stock-based compensation	17,426		4,078
Depreciation	1,212		397
Amortization of right-of-use asset	3,054		1,683
Accretion of debt issuance costs	1,047		153
Change in fair value of derivative liabilities	—		138,436
Unrealized loss recognized on equity securities	5,640		—
Unrealized foreign currency loss	13,301		(1,693)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(12,942)		(12,945)
Accounts payable and accrued expenses	2,319		41,891
Customer deposits	7,853		1,558
Change in operating lease liability	(2,948)		(1,026)
Net cash used in operating activities	(341,430)		(160,377)
Cash Flows from Investing Activities:
Acquisition of equity investment	(10,000)		—
Purchases of property and equipment and intangible asset	(157,256)		(81,828)
Net cash used in investing activities	(167,256)		(81,828)
Cash Flows from Financing Activities:
Proceeds from the issuance of convertible notes	—		667,500
Payments for debt issuance costs	—		(8,523)
Payments for capped call options	—		(96,788)
Proceeds from the exercise of warrants	—		89,023
Payment for stock issuance costs and redemption of unexercised warrants	—		(22)
Proceeds from the exercise of stock options	2,146		5,159
Payments for statutory withholding taxes	(1,436)		(4,891)
Proceeds from stock issuance under "At-the-market" offering	132,538		—
Payments for "At-the-market" issuance costs	(2,305)		—
Net cash provided by financing activities	130,943		651,458
Net increase (decrease) in cash and cash equivalents	(377,743)		409,253
Cash and cash equivalents, beginning of the period	1,202,439		991,158
Cash and cash equivalents, end of the period	$	824,696	$	1,400,411
Supplemental disclosure of cash flow information
Cash paid for interest	17,985		$	—

The accompanying notes are an integral part of these consolidated financial statements.

9

Fisker Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(In thousands, except share data)

(Unaudited)

1. Overview of the Company

Fisker was originally incorporated in the State of Delaware on October 13, 2017 as a special purpose acquisition company under the name Spartan Energy Acquisition Corp. for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses. Spartan completed its initial public offering in August 2018. On October 29, 2020, Spartan’s wholly-owned subsidiary merged with and into Fisker Holdings Inc. (f/k/a Fisker Inc.), a Delaware corporation (“Legacy Fisker”), with Fisker Holdings Inc. surviving the merger as a wholly-owned subsidiary of Spartan (the “Business Combination”). In connection with the Business Combination, Spartan changed its name to Fisker Inc.

Legacy Fisker was incorporated in the State of Delaware on September 21, 2016. In connection with its formation, the Company entered into stock purchase agreements with the Company’s founders, whereby the founders contributed certain intellectual property (primarily trademarks) and interests in Platinum IPR LLC. Platinum IPR LLC was an entity solely owned by the Company’s founders, which held Fisker trademarks registered in a variety of jurisdictions around the world. The founders’ transfer of its interest in Platinum IPR LLC and the transfer of trademarks was accounted for as a transfer of assets between entities under common control. The carrying amount of the transferred assets is recorded based on the prior carrying value, which was de minimis.

The Company’s common stock is listed on the NYSE under the symbol “FSR”. The Company’s warrants previously traded on the NYSE under the symbol “FSR WS” and on April 19, 2021, the NYSE filed a Form 25-NSE with respect to the warrants; the formal delisting of the warrants became effective ten days thereafter.

2. Summary of Significant Accounting Policies

Basis of Presentation

The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the SEC.

Unaudited Interim Financial Statements

The condensed consolidated balance sheet as of September 30, 2022, the condensed consolidated statements of operations and the condensed consolidated statements of changes in stockholders’ equity for the three-months and nine-months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine-months ended September 30, 2022 and 2021, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2021 was derived from the audited consolidated financial statements as of that date. The interim condensed consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022.

Comprehensive loss is not separately presented as the amounts are equal to net loss for the three and nine-months ended September 30, 2022 and 2021.

The interim condensed consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The condensed consolidated financial statements for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

Going Concern, Liquidity and Capital Resources

10

The Company evaluated whether there are any conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern over the next twelve months from the date of filing this report. As of September 30, 2022, the Company had approximately $825 million in cash and cash equivalents. The Company believes that substantial doubt about its ability to continue as a going concern does not exist as its cash on hand will be sufficient to meet its working capital and capital expenditure requirements for a period of at least twelve months from the date of the filing of this Form 10-Q.

Since inception, the Company has yet to generate any revenue from its core business operations and has incurred significant accumulated losses of approximately $997 million. The Company expects to continue to incur significant operating losses for the foreseeable future. The Company expects its capital expenditures and working capital requirements to increase substantially in the fourth quarter of 2022 and beyond, as it progresses toward production of the Fisker Ocean EV model, develop its customer support and marketing infrastructure and expand its research and development efforts. The Company may, however, need additional cash resources, including proceeds of up to $217.5 million from the sale of Class A common stock under its at-the-market equity program, to fund its operations until it commences serial production levels of the Fisker Ocean and achieves a level of production and sales that provide for operating profitability. To the extent that Fisker’s current resources are insufficient to satisfy its cash requirements, the Company may need to seek additional equity or debt financing and there can be no assurance that the Company will be successful in its efforts. If the financing is not available, or if the terms of financing are less desirable than the Company expects, the Company may be forced to decrease its planned level of investment in product development or scale back its operations, which could have an adverse impact on its business and financial prospects.

Supplier Risk

The Company nominated suppliers during the year for engineering, development, testing, tooling and production of components for serial production of its vehicles. As of September 30, 2022, these supplier contracts do not represent unconditional purchase obligations with take-or-pay or specified minimum quantities provisions with the exception of an agreement securing battery capacity for the Fisker Ocean SUV. Under the terms of the agreement, the battery supplier will deliver two different battery solutions for the Fisker Ocean SUV, with an initial battery capacity of over 5 gigawatt-hours annually, from 2023 through 2025.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP required management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the condensed consolidated financial statements and accompanying notes. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.

Fair Value Measurements

The Company follows the accounting guidance in ASC 820 Fair Value Measurement ("ASC 820"), for its fair value measurements of financial assets and liabilities measured at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance requires fair value measurements be classified and disclosed in one of the following three categories:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.

Level 3: Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

11

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Income Taxes

Income taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

There are transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain. As of September 30, 2022, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2021.

The Company’s income tax provision consists of an estimate for U.S. federal, foreign and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. The Company maintains a valuation allowance against the full value of its U.S. and state net deferred tax assets because the Company believes the recoverability of the tax assets is not more likely than not as of September 30, 2022.

Derivative Liability

The Company accounts for its public and private warrants as a derivative liability initially measured at their fair values and remeasured in the condensed consolidated statements of operations at the end of each reporting period. When the warrants are exercised, the corresponding derivative liability is de-recognized at the underlying fair value of the Class A common stock that is issued to the warrant holder less any cash paid in accordance with the warrant agreement. Upon either cash or cashless exercise, the de-recognized derivative liability results in an increase in additional paid in capital equal to the difference between the fair value of the underlying Class A common stock and its par value. A cashless exercise results in the warrant holder surrendering Class A common stock equal to the stated warrant exercise price based on the contractual terms in the warrant agreement that govern the cashless conversion.

Equity Awards

The grant date for an option or stock award is established when the grantee has a mutual understanding of the key terms and conditions of the option or award, the award is authorized, including all the necessary approvals unless approval is essentially a formality or perfunctory, and the grantee begins to benefit from, or be adversely affected by, underlying changes in the price of the Company’s Class A common shares. An award or option is authorized on the date that all approval requirements are completed (e.g., action by the compensation committee approving the award and the number of options, restricted shares or other equity instruments to be issued to individual employees).

Net Loss per Share of Common Stock

Basic net loss per share of common stock is calculated using the two-class method under which earnings are allocated to both common shares and participating securities. Undistributed net losses are allocated entirely to common shareholders since the participating security has no contractual obligation to share in the losses. Basic net loss per share is calculated by dividing the net loss attributable to common shares by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of stock-based compensation awards and warrants to purchase common stock (using the treasury stock method).

Foreign Currency Remeasurement and Transactions

12

The functional currency of the Company’s U.K., German, Indian and Austrian subsidiaries is the U.S. Dollar. For these subsidiaries, monetary assets and liabilities denominated in non-U.S. currencies are re-measured to U.S. Dollars using current exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities denominated in non-U.S. currencies are maintained at historical U.S. Dollar exchange rates. Expenses are re-measured at average U.S. Dollar monthly rates.

Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are immaterial for all periods presented.

In April and July 2022, the Company purchased 130.1 million Euros for 140.0 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.076 Euro and 50.0 million Euros for 50.9 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.018 Euro, which are designed to provide an economic hedge against future foreign currency exposures.

Recently Adopted Accounting Pronouncements

In December 2020, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU No. 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. This guidance had no effect on the Company’s condensed consolidated financial statements upon adoption in 2022.

In September 2021, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The ASU also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The ASU amends the diluted earnings per share guidance, including the requirement to use if-converted method for all convertible instruments and an update for instruments that can be settled in either cash or shares. We early adopted ASU 2020-06 effective on January 1, 2021 applying the modified retrospective method. Since the Company does not have any financial instruments as of January 1, 2021 within the scope of ASU 2020-06, early adoption had no effect on the Company’s condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. This ASU also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for non-public companies, and public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission (SEC), for interim and annual periods beginning after December 15, 2022. On December 31, 2021, the Company became a large accelerated filer, as defined by the SEC, and, as a result, adopted this guidance effective January 1, 2021, which did not have a material impact on the Company's consolidated financial statements.

13

3. Fair Value Measurements

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

	Fair Value Measured as of September 30, 2022:
	Level 1		Level 2		Level 3		Total
Assets included in:
Money market funds included in cash and cash equivalents	$	664,040	$	—	$	—	$	664,040
Equity investment	$	4,360	$	—	$	—	$	4,360
Total fair value	$	668,400	$	—	$	—	$	668,400

	Fair Value Measured as of December 31, 2021:
	Level 1		Level 2		Level 3		Total
Assets included in:
Money market funds included in cash and cash equivalents	$	1,191,079	$	—	$	—	$	1,191,079
Total fair value	$	1,191,079	$	—	$	—	$	1,191,079

The fair value of the Company’s money market funds is determined using quoted market prices in active markets for identical assets. The carrying amounts included in the Condensed Consolidated Balance Sheets under Current assets approximate fair value because of the short maturity of these instruments.

On July 28, 2021, the Company made a commitment for a private investment in public equity (PIPE) supporting the planned merger of European EV charging network, Allego B.V. (“Allego”) with Spartan Acquisition Corp. III (NYSE: SPAQ), a publicly-listed special purpose acquisition company. Fisker Inc. is the exclusive electric vehicle automaker in the PIPE and, in parallel, agreed to terms to deliver a range of charging options for its customers in Europe. On March 16, 2022, the merger closed and the Company delivered cash of $10 million in exchange for 1,000,000 shares of Allego's Class A common stock (NYSE:ALLG). The Company's ownership percentage is less than 5% and does not result in significant influence. Allego filed with the SEC a registration statement registering the resale of the shares acquired (the “Registration Statement”) that was declared effective by the SEC during the second quarter of 2022. The Company has classified its equity investment in Allego as a current asset. Unrealized losses recognized during the three and nine-months ended September 30, 2022 on equity securities still held as of September 30, 2022 totaled $0.7 million and $5.6 million, respectively as shown separately in the Condensed Consolidated Statement of Operations.

We carry the convertible senior notes at face value less the unamortized debt issuance costs on our consolidated balance sheets and present that fair value for disclosure purposes only. As of September 30, 2022, the fair value of the 2026 Notes was $343.1 million. The estimated fair value of the convertible notes, which are classified as Level 2 financial instruments, was determined based on the estimated or actual bid prices of the convertible notes in an over-the-counter market on the last business day of the period.

For the nine-months ended September 30, 2021, the Company measured its derivative liability for its private and public warrants at fair value on a recurring basis. The private warrants fair value is determined based on significant inputs not observable in the market, which caused it to be classified as a Level 3 measurement within the fair value hierarchy. The Company used an option pricing simulation model for the valuation of the private warrants, which used assumptions the Company believed would be made by a market participant in making the same valuation. all of which were exercised in March 2021. The public warrants fair value is determined using its publicly traded prices (Level 1). All of the public and private warranted were exercised or redeemed in 2021. Changes in the fair value of the derivative liability related to updated assumptions and estimates are recognized within the Condensed Consolidated Statements of Operations as a non-operating expense. For the nine-months ended September 30, 2021, the changes in the fair value of the derivative liability resulted from changes in the fair values of the underlying Class A common shares and its associated volatility upon exercise in March 2021.

14

4. Intangible Assets

The Company has the following intangible assets (in thousands):

	As of September 30, 2022
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Capitalized cost - manufacturing	8 years	$	251,609	$	—	$	251,609
		$	251,609	$	—	$	251,609

	As of December 31, 2021
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Capitalized cost - manufacturing	8 years	$	231,525	$	—	$	231,525
		$	231,525	$	—	$	231,525

The Company did not amortize the capitalized cost associated with the warrants granted to Magna International, Inc. (“Magna”) for the nine-months ended September 30, 2022 as amortization will commence on a straight-line basis with the start of production for the Fisker Ocean which is expected to occur in the fourth quarter of 2022. The Company expects to amortize the intangible asset over eight years but will continually assess the reasonableness of the estimated life. Refer to Note 9 for additional information regarding the capitalization of costs upon issuance of warrants to Magna. Also, the Company capitalized certain costs associated with manufacturing of the Fisker Ocean and production of parts, which will be amortized beginning with the start of production for the Fisker Ocean over eight years.

5. Property and Equipment, Net

Property and equipment, net, consists of the following (in thousands):

	September 30, 2022		December 31, 2021
Machinery and equipment	$	1,380	$	1,174
Furniture and fixtures	451		307
IT hardware and software	4,693		3,778
Leasehold improvements	90		20
Construction in progress	230,979		81,160
Total property and equipment	237,593		86,439
Less: Accumulated depreciation and amortization	(2,008)		(796)
Property and equipment, net	$	235,585	$	85,643

Construction in progress primarily consists of capitalized tooling costs. As of September 30, 2022, accounts payable and accrued expenses includes acquired property and equipment of $29.3 million compared to $35.4 million as of December 31, 2021, which is excluded from net cash used in investing activities as reported in the condensed consolidated statement of cash flows for the nine-months ended September 30, 2022.

15

6. Accrued Expenses

A summary of the components of accrued expenses is as follows (in thousands):

	September 30, 2022		December 31, 2021
Accrued vendor liabilities	$	88,828	$	67,293
Order deposits	4,810		—
Accrued professional fees	2,595		3,579
Accrued payroll	1,681		1,989
Accrued interest	695		6,165
Accrued other	824		608
Total accrued expenses	$	99,433	$	79,634

Accrued expenses include amounts owed to vendors but not yet invoiced in exchange for vendor purchases, research and development services, and order deposits. Certain estimates of accrued vendor expenses are based on costs incurred to date.

Order Deposits

In the third quarter of 2022, the Company began accepting order deposits of $5,000 USD or equivalent currency for Fisker Ocean Ones, a limited-edition trim level of the Fisker Ocean. The Company also converted customer deposits for reservation holders who previously made a deposit for an Extreme, Ultra or Sport Ocean prior to August 16, 2022, the enactment date of the Inflation Reduction Act of 2022 (the "Inflation Reduction Act"). Order deposits will be applied to the sales price of the vehicle and recognized as revenue when the vehicle is sold and delivered to the customer. Order Deposits are not included in customer deposits.

On July 1, 2022, the Company entered into a contract for global payment processing agreement with JPMorgan Chase Bank, N.A. (“Chase”). Order Deposits paid directly to the Company via ACH or other direct payment mechanisms are received in the Company’s bank account and available for its use in the subsequent month after the month in which the Order Deposits were placed. For Order Deposits made through credit card transactions, Chase holds cash received from customers 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. Cash received from Order Deposits and the conversion of any customer deposit results in the recognition of a contract liability. As of September 30, 2022, contract liabilities totaled $4.8 million and were classified as current liabilities, included in “Accrued Expenses” on the consolidated balance sheet.

7. Customer Deposits

Customer deposits consists of the following (in thousands):

	September 30, 2022		December 31, 2021
Customer reservation	$	13,399	$	5,546
Customer SUV option	754		754
Total customer deposits	$	14,153	$	6,300

Customer deposits consist of reservations, which represent cash received for the future right (e.g., a reservation) to order a Fisker Ocean or PEAR, and customer SUV option.

8. Convertible Senior Notes

2026 Notes

In August 2021, we issued an aggregate of $667.5 million principal amount of 2.50% convertible senior notes due in September 2026 (the “2026 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the

16

Securities Act of 1933, as amended. The 2026 Notes have been designated as green bonds, whose proceeds will be allocated in accordance with the Company’s green bond framework. The 2026 Notes consisted of a $625.0 million initial placement and an over-allotment option that provided the initial purchasers of the 2026 Notes with the option to purchase an additional $100.0 million aggregate principal amount of the 2026 Notes, of which $42.5 million was exercised. The 2026 Notes were issued pursuant to an indenture dated August 17, 2021. The net proceeds from the issuance of the 2026 Notes were $562.2 million net of debt issuance costs and cash used to purchase the capped call transactions (“2026 Capped Call Transactions”) discussed below. The debt issuance costs are amortized to interest expense.

The 2026 Notes are unsecured obligations which bear regular interest at 2.50% annually and will be payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2022. The 2026 Notes will mature on September 15, 2026, unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The 2026 Notes are convertible into cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election, at an initial conversion rate of 50.7743 shares of Class A common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $19.70 per share of our Class A common stock. The conversion rate is subject to customary adjustments for certain events as described in the indenture governing the 2026 Notes. We may redeem for cash all or any portion of the 2026 Notes, at our option, on or after September 20, 2024 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

Holders of the 2026 Notes may convert all or a portion of their 2026 Notes at their option prior to June 15, 2026, in multiples of $1,000 principal amounts, only under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on September 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•during the five-business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the applicable conversion rate of the 2026 Notes on such trading day;

•if we call such 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the notes called (or deemed called) for redemption; or

•on the occurrence of specified corporate events.

On or after June 15, 2026, the 2026 Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the 2026 Notes who convert the 2026 Notes in connection with a make-whole fundamental change, as defined in the indenture governing the 2026 Notes, or in connection with a redemption may be entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change, holders of the 2026 Notes may require us to repurchase all or a portion of the 2026 Notes at a price equal to 100% of the principal amount of 2026 Notes, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

We accounted for the issuance of the 2026 Notes as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives.

As of September 30, 2022, the 2026 Notes consisted of the following (in thousands):

Principal	$	667,500
Unamortized debt issuance costs	(7,105)
Net carrying amount	$	660,395

17

Interest expense related to the amortization of debt issuance costs for the three and nine-months ended September 30, 2022 was $0.4 million and $1.0 million, respectively. Contractual interest expense for the three and nine-months ended September 30, 2022 was $4.2 million and $12.4 million, respectively.

As of September 30, 2022, the if-converted value of the 2026 Notes did not exceed the principal amount. The 2026 Notes were not eligible for conversion as of September 30, 2022.No sinking fund is provided for the 2026 Notes, which means that we are not required to redeem or retire them periodically.

Capped Call Transactions

In connection with the offering of the 2026 Notes, we entered into the 2026 Capped Call Transactions with certain counterparties at a net cost of $96.8 million. The 2026 Capped Call Transactions are purchased capped call options on 33.9 million shares Class A common stock, that, if exercised, can be net share settled, net cash settled, or settled in a combination of cash or shares consistent with the settlement elections made with respect to the 2026 Notes if converted. The cap price is initially $32.57 per share of our Class A common stock and subject to certain adjustments under the terms of the 2026 Capped Call Transactions. The strike price is initially $19.70 per share of Class A common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2026 Notes.

The 2026 Capped Call Transactions are intended to reduce potential dilution to holders of our Class A common stock upon conversion of the 2026 Notes and/or offset any cash payments we are required to make in excess of the principal amount, as the case may be, with such reduction or offset subject to a cap. The cost of the Capped Call Transactions was recorded as a reduction of our additional paid-in capital in our consolidated balance sheets. The Capped Call Transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

9. Common Stock and Warrants

Public and Private Warrants

On March 19, 2021, the Company announced that it would redeem all of its outstanding warrants (the “Public Warrants”) to purchase shares of the Company’s Class A common stock, par value $0.00001 per share (the “Common Stock”), that were issued under the Warrant Agreement, dated August 9, 2018 (the “Warrant Agreement”), by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agent”), as part of the units sold in the Company’s initial public offering (the “IPO”), for a redemption price of $0.01 per Public Warrant (the “Redemption Price”), that remained outstanding at 5:00 p.m. New York City time on April 22, 2021 (the “Redemption Date”). The Private Placement Warrants were not subject to this redemption. In addition, in accordance with the Warrant Agreement, the Company’s board of directors elected to require that, upon delivery of the notice of redemption, all Public Warrants were to be exercised only on a “cashless basis.” Accordingly, holders could not exercise Public Warrants and receive Common Stock in exchange for payment in cash of the $11.50 per warrant exercise price. Instead, a holder exercising a Public Warrant was deemed to pay the $11.50 per warrant exercise price by the surrender of 0.5046 of a share of Common Stock that such holder would have been entitled to receive upon a cash exercise of a Public Warrant. Accordingly, by virtue of the cashless exercise of the Public Warrants, exercising warrant holders received 0.4954 of a share of Common Stock for each Public Warrant surrendered for exercise. For the unexercised 225,906 Public Warrants outstanding at the Redemption Date, the Company paid $2,259 to redeem the unexercised warrants in the second quarter of 2021. There are no Public Warrants outstanding as of September 30, 2022 and December 31, 2021.

During March 2021, the 9,360,000 warrants to purchase Common Stock that were originally issued under the Warrant Agreement in a private placement simultaneously with the IPO were exercised by the Company’s former sponsor on a cashless basis for 4,907,329 shares of Common Stock (4,452,671 shares of Common Stock surrendered) and are no longer outstanding. During the nine-months ended September 30, 2021, the Company received cash proceeds of $89 million upon the exercise of 7,733,400 Public Warrants immediately prior to the announcement to redeem the Public Warrants. Cashless exercises of public and private warrants increased additional paid-in capital by $277 million for the nine-months ended September 30, 2021.

Magna Warrants

On October 29, 2020, the Company granted Magna up to 19,474,454 warrants, each with an exercise price of $0.01, to acquire underlying shares of Class A common stock of Fisker, which represented approximately 6.0% ownership in Fisker on a fully diluted basis as of the grant date. The right to exercise vested warrants expires on October 29, 2030. The

18

warrants are accounted for as an award issued to non-employees measured on October 29, 2020 with three interrelated performance conditions that are separately evaluated for achievement.

Milestone	Percentage of Warrants that Vest Upon Achievement		Number of Warrants that Vest Upon Achievement
(a) (i) Achievement of the “preliminary production specification” gateway as set forth in the Development Agreement; (ii) entering into the Platform Agreement; and (iii) entering into the Initial Manufacturing Agreement	33.3	%	6,484,993
(b) (i) Achievement of the “target agreement” gateway as set forth in the Development Agreement and (ii) entering into the Detailed Manufacturing Agreement, which will contain terms and conditions agreed to in the Initial Manufacturing Agreement	33.3	%	6,484,993
(c) Start of pre-serial production	33.4	%	6,504,468
			19,474,454

The cost upon achievement of each milestone is recognized when it is probable that a milestone will be met. The cost for awards to nonemployees is recognized in the same period and in the same manner as if the Company had paid cash for the goods or services. At September 30, 2022, Magna satisfied the first and second milestones and the Company capitalized costs as an intangible asset representing the future economic benefit to Fisker Inc. As of September 30, 2022, the Company determined the third milestone is probable of achievement and capitalized a portion of the award's fair value corresponding to the service period beginning at the grant date and ending in the fourth quarter of 2022. The unrecognized portion of the award will be recognized ratably over the remainder of the service period ending upon start of pre-serial production, which is estimated to occur on November 17, 2022. Changes in the estimated timing of start of pre-serial production will require a cumulative adjustment for a change in accounting estimate. For the nine-months ended September 30, 2022, the recognized cost of $20.1 million (a non-cash transaction) associated with services rendered, resulted in increased capitalized cost - manufacturing to $251.6 million as of September 30, 2022. Because there are multiple milestones to achieve, the intangible asset is under development and will be complete when start of pre-serial production begins. The Company will amortize the aggregate capitalized cost in a systematic and rational manner. Throughout its useful life, including the period of time before completion, the Company will assess the intangible asset for impairment. If an indicator of impairment exists, the undiscounted cash flows will be estimated and then if the carrying amount of the intangible asset is not recoverable, determine its fair value and record an impairment loss. At September 30, 2022, no indicators of impairment exists.

The fair value of each warrant is equal to the intrinsic value (e.g., stock price on grant date less exercise price) as the exercise price is $0.01. The terms of the warrant agreement require net settlement when exercised. Using the measurement date stock price of $8.96 for a share of Class A common stock, the warrant fair values for each tranche is shown below. Capitalized cost also results in an increase to additional paid in capital equal to the fair value of the vested warrants. Awards vest when a milestone if met. Magna has 12,969,986 vested and exercisable warrants to acquire underlying Class A common stock of Fisker as of September 30, 2022, none of which are exercised.

	Fair value		Capitalized at September 30, 2022
Milestone (a)	$	58,041	$	58,041
Milestone (b)	58,041		58,041
Milestone (c)	58,215		51,520
	$	174,297	$	167,602

19

At-the-market Equity Program

In May, 2022, we entered into an at-the-market distribution agreement, dated May 24, 2022 with J.P. Morgan Securities LLC and Cowen and Company, LLC as the sales agents (the "Distribution Agreement"), pursuant to which the Company established an at-the-market equity program (the “ATM Program”). Pursuant to the ATM Program, Fisker may, at its discretion and from time to time during the term of the Distribution Agreement, sell, through the Agents, shares of its Class A Common Stock as would result in aggregate gross proceeds to the Company of up to $350 million by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415 of the Securities Act of 1933, as amended, including without limitation sales made directly on the New York Stock Exchange, on any other existing trading market for the Class A Common Stock or to or through a market maker. In addition, the sales agents may also sell the shares of Class A Common Stock by any other method permitted by law, including, but not limited to, negotiated transactions. The Class A Common Stock sold under the ATM Program is registered with the SEC under the Company's effective shelf registration statement that permits the Company to issue various securities for proceeds of up to $2.0 billion. The Company issued 14,491,359 shares of Class A common stock during the nine-months ended September 30, 2022 for gross proceeds of $132.5 million, before $2.6 million of commissions and other direct incremental issuance costs, and, as of September 30, 2022, $217.5 million of Class A Common Stock is available for sale under the ATM Program. As of September 30, 2022, the Company may issue securities in the future for up to $1.65 billion under its shelf-registration statement, subject to customary underwriting and due diligence procedures.

10. Loss Per Share

The Company computes earnings (loss) per share of Class A Common Stock and Class B Common Stock using the two-class method required for participating securities. Basic and diluted earnings per share was the same for each period presented as the inclusion of all potential Class A Common Stock and Class B Common Stock outstanding would have been anti-dilutive. Basic and diluted earnings per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following table sets forth the computation of basic and diluted loss per Class A Common Stock and Class B Common Stock:

	Three-months Ended September 30,
	2022		2021
Numerator:
Net loss	$	(149,342)	$	(109,844)
Denominator:
Weighted average Class A common shares outstanding	170,870,467		163,779,402
Weighted average Class B common shares outstanding	132,354,128		132,354,128
Weighted average Class A and Class B common shares outstanding- Basic and Diluted	303,224,595		296,133,530
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(0.49)	$	(0.37)

	Nine Months Ended September 30,
	2022		2021
Numerator:
Net loss	$	(377,392)	$	(332,909)
Denominator:
Weighted average Class A common shares outstanding	167,107,937		158,091,137
Weighted average Class B common shares outstanding	132,354,128		132,354,128
Weighted average Class A and Class B common shares outstanding- Basic and Diluted	299,462,065		290,445,265
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(1.26)	$	(1.15)

20

The following table presents the potential common shares outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive:

	As of September 30,
	2022	2021
Convertible senior notes	33,891,845	33,891,845
Stock options and warrants	30,555,194	31,185,282
Total	64,447,039	65,077,127

11. Stock Based Compensation

The 2020 Equity Incentive Plan (the “Plan”) is a stock-based compensation plan which provides for the grants of options and restricted stock to employees and consultants of the Company. Options granted under the Plan may be either incentive options (“ISO”) or nonqualified stock options (“NSO”). Also, the Company established a 2020 Employee Stock Purchase Plan (the “ESPP”) under which Class A Common Stock may be issued. As of September 30, 2022, no shares have been issued under the ESPP.

Stock-based compensation expense is as follows (in thousands):

	Three-months Ended September 30,
	2022		2021
General and administrative expense	$	3,908	$	209
Research and development	7,258		834
Total	$	11,166	$	1,043

	Nine Months Ended September 30, 2022
	2022		2021
General and administrative expense	$	6,099	$	816
Research and development	11,327		3,262
Total	17,426		4,078

Stock options

Options under the Plan may be granted at prices as determined by the Board of Directors, provided, however, that (i) the exercise price of an ISO and NSO shall not be less than 100% of the estimated fair value of the shares on the date of grant, and (ii) the exercise price of an ISO granted to a 10% shareholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. The fair value of the shares is determined by the Board of Directors on the date of grants. Stock options generally have a contractual life of 10 years. Upon exercise, the Company issues new shares.

In 2016 and 2017, the Company’s founders were granted an aggregate of 15,882,711 options which are fully vested and are not related to performance. Options granted to other employees and consultants become vested and are exercisable over a range of up to six years from the date of grant.

21

The following table summarizes option activity under the Plan:

	Options	Weighted Average Exercise Price	Weighted Average Contractual Term (in Years)
Balance as of December 31, 2021	17,695,560	1.44	5.6
Granted	346,700	11.26
Exercised	(186,491)	2.39
Forfeited	(270,561)	12.03
Balance as of September 30, 2022	17,585,208	1.48	4.6

The fair value of each stock option grant under the Plan was estimated on the date of grant using the Black-Scholes option pricing model, with the following range of assumptions:

	Nine Months Ended September 30, 2022
Expected term (in years)	6.3
Volatility	78.2% to 79.4%
Dividend yield	0.0%
Risk-free interest rate	2.94% to 3.37%
Common stock price	$8.75 to $9.59

The Black-Scholes option pricing model requires various highly subjective assumptions that represent management’s best estimates of the fair value of the Company’s common stock, volatility, risk-free interest rates, expected term, and dividend yield. As the Company’s shares have actively traded for a short period of time subsequent to the Business Combination, volatility is based on a benchmark of comparable companies within the automotive and energy storage industries.

The expected term represents the weighted-average period that options granted are expected to be outstanding giving consideration to vesting schedules. Since the Company does not have an extended history of actual exercises, the Company has estimated the expected term using a simplified method which calculates the expected term as the average of the time-to-vesting and the contractual life of the awards. The Company has never declared or paid cash dividends and does not plan to pay cash dividends in the foreseeable future; therefore, the Company used an expected dividend yield of zero. The risk-free interest rate is based on U.S. Treasury rates in effect during the expected term of the grant. The expected volatility is based on historical volatility of publicly-traded peer companies.

Restricted stock awards

During the nine-months ended September 30, 2022, the Company granted employees, who rendered services during the year ended December 31, 2021 and were employees of the Company on the grant date, a restricted stock unit (“RSU”) award based in proportion to the service period beginning from the employee’s hire date to the end of the year. The restricted stock unit awards vested on the grant date which resulted in stock-based compensation expense of $4.5 million recognized in the nine-months ended September 30, 2022. The Company’s founders declined to receive an award related to performance in 2021. In accordance with the Company’s Outside Director Compensation Policy, each outside Board of Directors member will receive an annual RSU equal to $200,000 granted on the date of the Company’s annual shareholders’ meeting which vests in 25% increments at the end of each calendar quarter. Each Outside Director may elect to convert all or a portion of his or her annual Board of Directors retainer, excluding any annual retainer that an Outside Director may receive for serving as Lead Director and any annual retainers for committee service, into RSUs in lieu of the applicable cash retainer payment (“RSU Election”).

The number of Class A common shares granted to Outside Directors annually are based on the 30-day average closing trading price of Class A common stock on the day preceding the grant date (“RSU Value”). When an Outside Director exercises his or her RSU Election, the number of Class A common shares equal the amount of cash subject to such RSU Election divided by the applicable RSU Value and are fully vested.

22

The following table summarizes RSU activity under the Plan:

	RSU Awards	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2021	17,174	$	13.47
Awarded	425,816	10.79
Vested	(428,240)	11.27
Forfeited	(1,016)	11.46
Unvested as of September 30, 2022	13,734	$	12.92

Performance-based restricted stock awards

In the third quarter of 2021, the Company’s compensation committee ratified and approved performance-based restricted stock units (“PRSUs”) to all employees (“Grantee”) the value of which is determined based on the Grantee’s level within the Company (“PRSU Value”). Each PRSU is equal to one underlying share of Class A common stock. Also, PRSUs will be awarded to any new employee hired during 2022 and 2023 on a pro-rata basis based on a reduction in time of service. The number of shares subject to a Grantee’s PRSU award equals the Grantee’s PRSU Value divided by the closing price per Class A common share on the service inception date, or if the service inception date is not a trading day, the closing price per Share on the closest trading day immediately prior to the service inception date; in each case rounded down to the nearest whole number. Each PRSU award shall vest as to 50% of the PRSU Value upon the Committee’s determination, in its sole discretion, and certification of the occurrence of the Ocean Start of Production and shall vest as to 50% of the PRSUs upon the first anniversary of the Ocean Start of Production, in each case, subject to (i) the Grantee’s continuous service through the applicable vesting date, (ii) the Grantee’s not committing any action or omission that would constitute Cause for termination through the applicable vesting date, as determined in the sole discretion of the Company, and (iii) the Ocean Start of Production occurring on or before December 31, 2022. The compensation committee has discretion to reduce or eliminate the number of PRSUs that shall vest pursuant to each PRSU award upon the certification of the occurrence of the Ocean Start of Production and/or upon the first anniversary of the Ocean Start of Production, after considering, any factors that it deems relevant, which could include but are not limited to (i) Company performance against key performance indicators, and (ii) departmental performance against goals. The service inception date precedes the grant dates for both performance conditions. The grant date for each of the performance conditions is the date Grantees have a mutual understanding of the key terms and conditions of the PRSU, which will occur when each performance condition is achieved, and the compensation committee has determined whether it will exercise its discretion to adjust the PRSU award. As of September 30, 2022, the Company has approved and authorized PRSUs equal to 2,939,708 shares of Class A Common Stock with an aggregate PRSU value of $22.2 million. Recognition of stock-based compensation occurs when performance conditions are probable of achievement. Measurement of stock-based compensation attributed to the PRSU awards will be based on the fair value of the underlying Class A Common Stock once the grant date is determined (e.g., variable accounting). As of September 30, 2022, the Company determined that 50% of the PRSU Value is probable of achievement resulting in compensation expense of $9.6 million in the third quarter of 2022. Measurement of PRSU compensation expense is based on the closing price on the last day of the quarter ended September 30, 2022 multiplied by the outstanding approved and authorized PRSUs. The grant date of the PRSUs has not been determined and thus the PRSUs remain subject to variable accounting treatment.

12. Related Party Transactions

On March 8, 2021, the Company appointed Mitchell Zuklie to its Board of Directors . Mr. Zuklie is the chairman of the law firm of Orrick, Herrington & Sutcliff LLP (‘‘Orrick’’), which provides various legal services to the Company. During the three-months ended September 30, 2022 and 2021, the Company incurred expenses for legal services rendered by Orrick totaling approximately $4.6 million and $0.7 million, respectively, and $7.7 million and $1.1 million for the nine-months ended September 30, 2022 and 2021, respectively.

13. 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.

23

During the nine months ended September 30, 2022, the Company entered into two lease agreements pertaining to an industrial facility located in Shanghai, China and commercial space dedicated to powertrain development and prototyping and vehicle tear-down, service technician training and minor service research in California, which commenced in the third quarter of 2022 resulting in initial recognition of lease liabilities and corresponding right of use assets totaling $12.5 million (a non-cash transaction). In addition, the Company entered into two lease agreements for Center+ properties located in Vienna, Austria and Copenhagen, Denmark to be used for test drives, service and deliveries of our vehicles to customers. The Vienna and Copenhagen leases have not commenced as of September 30, 2022 due to contractual terms that grant Fisker access to the premises in the fourth quarter of 2022 at which time Fisker may modify the properties to accommodate its operations. When the date of lease commencement is determined, the Company will determine the incremental borrowing rate and measure and recognize the lease liability and right of use asset.

24

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Overview

The following discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the related notes included elsewhere in this report.

OVERVIEW

Fisker is building a technology-enabled, asset-light automotive business model that it believes will be among the first of its kind and aligned with the future state of the automotive industry. This involves a focus on vehicle development, customer experience, sales and service intended to change the personal mobility experience through technological innovation, ease of use and flexibility. The Company combines the legendary design and engineering expertise of Henrik Fisker to develop high quality electric vehicles with strong emotional appeal. Central to Fisker’s business model is the Fisker Flexible Platform Agnostic Design (“FF-PAD”), a proprietary process that allows the development and design of a vehicle to be adapted to any given electric vehicle (“EV”) platform in the specific segment size. The process focuses on selecting industry leading vehicle specifications and adapting the design to crucial hard points on a third-party supplied EV platform and outsourced manufacturing to reduce development cost and time to market. The first example of this is Fisker’s work to adapt the Fisker Ocean design to a base vehicle platform developed by Magna Steyr Fahrzeugtechnik AG & Co KG, a limited liability partnership established and existing under the laws of Austria (“Magna Steyr”), an affiliate of Magna. This development with Magna Steyr began in September 2020 and passed the first and second engineering gateways in November 2020 and March 2021, respectively and we are currently in the prototype building phase for production in November 2022. Fisker believes it is well-positioned through its global premium EV brand, its renowned design capabilities, its sustainability focus, and its asset-light and low overhead, direct to consumer business model which enables products like the Fisker Ocean to be priced roughly equivalent to internal combustion engine-powered SUV’s from premium brand competitors.

The Fisker Ocean is targeting a large and rapidly expanding “premium with volume” segment (meaning a premium automaker producing more than 100,000 units of a single model such as the BMW X3 Series or Tesla Model Y) of the electric SUV market. Fisker expects to begin production of the Ocean as early as the fourth quarter of 2022. The Fisker Ocean, a five-passenger vehicle with potentially a 250- to over 350-mile range and state-of-the-art advanced driver assistance capabilities, will be differentiated in the marketplace by its innovative and timeless design and a re-imagined customer experience delivered through an advanced software-based user interface. The Fisker Ocean is designed for a high degree of sustainability, using recycled rubber, eco-suede interior trim made from recycled polyester, and carpeting from fishing nets and plastic bottles recycled from ocean waste, among many other sustainable features. The optional features for the Ocean, including California Mode (patent pending) and a solar photovoltaic roof resulted in the Fisker Ocean prototype being the most awarded new automobile at CES 2020 by Time, Newsweek, Business Insider, CNET and others.

Fisker believes its innovative business model, including “E-Mobility-as-a-Service” (“EMaaS”), will revolutionize how consumers view personal transportation and car ownership. Over time, Fisker plans to combine a customer-focused experience with flexible leasing options, affordable monthly payments and no fixed lease terms, in addition to direct-to-consumer sales. Through an innovative partnership strategy, Fisker believes that it will be able to significantly reduce the capital intensity typically associated with developing and manufacturing vehicles, while maintaining flexibility and optionality in component sourcing and manufacturing due to Fisker’s FF-PAD proprietary process. Through Fisker’s FF-PAD proprietary process, Fisker is currently working with Magna to develop a proprietary electric vehicle platform called FM29 that will underpin Fisker Ocean and at least one additional nameplate. Fisker intends to cooperate with one or more additional industry-leading original equipment manufacturers (“OEMs”), technology companies, and/or tier-one automotive suppliers for access to procurement networks, while focusing on key differentiators in innovative design, software and user interface. Multiple platform-sharing partners is intended to accelerate growth in Fisker’s portfolio of electric vehicle offerings. Fisker envisions a go-to-market strategy with both web- and app-based digital sales, loan financing approvals, leasing, and service management, with limited reliance on traditional brick-and-mortar “sales-and-service” dealer networks. Fisker believes that this customer-focused approach will drive revenue, user satisfaction and higher margins than competitors.

The Business Combination

Fisker was originally incorporated in the State of Delaware in October 13, 2017 as a special purpose acquisition company under the name Spartan Energy Acquisition Corp., formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or

25

more businesses. Spartan completed its IPO in August 2018. In October 2020, the Business Combination and Spartan changed its name to Fisker Inc.

The Business Combination was accounted for as a reverse recapitalization, in accordance with GAAP. Under this method of accounting, Spartan was treated as the “acquired” company for financial reporting purposes. Accordingly, the Business Combination was treated as the equivalent of Legacy Fisker issuing stock for the net assets of Spartan, accompanied by a recapitalization, whereby no goodwill or other intangible assets was recorded. Operations prior to the Business Combination are those of Legacy Fisker.

Key Trends, Opportunities and Uncertainties

Fisker is a pre-revenue company and believes that its future performance and success depends to a substantial extent on the ability to capitalize on the following opportunities, which in turn is subject to significant risks and challenges, including those discussed below and in the section of our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 titled “Risk Factors.”

Partnering with Industry-Leading OEMs and/or Tier-One Automotive Suppliers

Magna Steyr / FM29 Platform (Fisker Ocean)

On October 14, 2020, Fisker and Spartan entered into a Cooperation Agreement with Magna setting forth certain terms for the development of a full electric vehicle (the “Cooperation Agreement”). That Cooperation Agreement sets out the main terms and conditions of operational phase agreements (the “Operational Phase Agreements”) that were subsequently entered into by and between Fisker and Magna (or its affiliates). On December 17, 2020, Fisker entered into the platform-sharing and initial manufacturing Operational Phase Agreements referenced in the Cooperation Agreement. On June 12, 2021, Fisker entered into the detailed manufacturing agreement referenced in the Cooperation Agreement. We are creating FM29, a unique EV platform, that will have unique Fisker intellectual property. By working with a proven contract manufacturer such as Magna Steyr, we can accelerate our time to market, reduce vehicle development costs, and gain access to an established global supply chain. Our proprietary FF-PAD process is hardware agnostic which will enable us to collaborate with multiple EV platform developers for the production of future vehicles and develop rapid derivatives and improvements to our current FM29 Platform. Since the inception of our Cooperation Agreement, we have added significant certified content and tailored the FM29 platform into a proprietary Fisker platform where we can leverage our intellectual property and technology for certain systems and subsystems in future vehicles and will increase efficiency in vehicle development and speed to bring vehicles to market.

26

Hon Hai Technology Group (Fisker Pear)

On May 13, 2021, the Company announced it signed framework agreements with Hon Hai Technology Group (Foxconn) supporting the joint development and manufacturing of project ‘PEAR’ (Personal Electric Automotive Revolution), a project to develop a new breakthrough electric vehicle. Under the agreements, the Company and Foxconn will jointly invest into Project PEAR, with each company taking proceeds from the successful delivery of the program. Following an extensive review of manufacturing sites, the two companies will make significant efforts to develop and execute a manufacturing plan capable of supporting the planned start of production. On May 12, 2022, Fisker and Foxconn confirmed that the Fisker PEAR will be built at Foxconn's manufacturing facility in Ohio, with production expected to start in 2024.

These co-operations allow Fisker to focus on vehicle design, supply chain / procurement, vehicle integration, strong brand affiliation and a differentiated customer experience. Fisker intends to leverage multiple EV platforms and Fisker intellectual property to accelerate its time to market, rapidly expand its product portfolio, reduce vehicle development costs and gain access to an established global supply chain of batteries and other components.

Fisker believes that its business model will reduce the considerable execution risk typically associated with new car companies. Through Fisker's proprietary platform, component sourcing and manufacturing partnerships, Fisker believes it will be able to accelerate its time to market and reduce vehicle development costs. Fisker remains on-track for Fisker Ocean start-of-production on November 17, 2022 and intends to meet timing, cost and quality expectations while optimally matching its cost structure with its projected production ramp by leveraging such partnerships and trained workforces. Remaining hardware agnostic allows for selection of partners, components, and manufacturing decisions to be based on both timeline and cost advantages and enables Fisker to focus on delivering truly innovative design features, a superior customer experience, and a leading user interface that leverages sophisticated software and other technology advancements.

Fisker has entered into agreements covering the FM29 platform, development and engineering services, and manufacturing, among others. Extended negotiation of the specific project-related agreements, the sourcing of components or labor at higher than anticipated cost, or any delays in sourcing suppliers of sustainable parts may delay Fisker’s commercialization plans or require it to change the anticipated pricing of its vehicles. Such delays could be caused by a variety of factors, some of which may be out of Fisker’s control. See “Risk Factors—Risks Related to Fisker—Fisker faces risks related to health epidemics, including the recent COVID-19 pandemic, which could have a material adverse effect on its business and results of operations.”

27

Market Trends and Competition

Fisker anticipates robust demand for the Fisker Ocean, based on its award-winning design, its unique sustainability features, the management team’s experience and know-how and, in particular, the growing acceptance of and demand for EVs as a substitute for gasoline-fueled vehicles. Many independent forecasts are assuming that EV’s as percentage of global auto sales will grow from less than 3% in 2020 to more than 20% in 2030. One such report from RBC, published in October 2020, assumes sales of EV’s to grow from less than 2.0 million units globally (less than 3% of total volume) to 25 million units in 2030 (approximately 25% of total volume), a 29% CAGR. The EV market is highly competitive, but Fisker believes it will remain less competitive than the ICE market for some time. For example, there are 79 nameplates sold in the US market within the compact and midsize SUV category currently, while most observers expect no more than 10-20 EV’s in those segments at the time Fisker launches, most of which are expected to be priced well above Fisker Ocean. Fisker believes the market will be broken down into three primary consumer segments: the white space segment, the value segment, and the conservative premium segment. See “Information About Fisker—Sales – Go to Market Strategy.” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022 Fisker expects to sell approximately 50% of its vehicles within the white space segment, appealing to customers who want to be part of the new EV movement and value sustainability and environmental, social, and governance (“ESG”) initiatives. This is supported by a survey of Fisker’s current reservation-holders which found that over 50% currently own non-premium branded vehicles and over 50% currently own non-SUV’s (i.e. cars, hatchbacks, minivans, etc.). Fisker believes that it will be well positioned to be the primary alternative to Tesla in this segment with the Ocean priced around the base price of the Model 3 and below the base price of the Model Y. While Fisker will compete with other EV startups, many of them are moving into the higher luxury priced segments due to the lack of volume pricing of components that Fisker expects to obtain through platform sharing partnerships with industry-leading OEMs and/or tier-one automotive suppliers. To expand market share and attract customers from competitors, Fisker must continue to innovate and convert successful research and development efforts into differentiated products, including new EV models.

Fisker is also working to quantify the sustainability advancements and claims that the Fisker brand would produce the most sustainable vehicles in the world, which it believes will be an increasingly important differentiator among a growing subset of consumers. To this end, an internal analysis resulted in an announcement in June 2021 that Fisker aims to produce a 100% climate-neutral vehicle, without the use of purchased carbon offsets, in 2027. In Fisker’s pursuit of these objectives, it will be in competition with substantially larger and better capitalized vehicle manufacturers. While Fisker believes that the low-capital-intensity platform sharing partnership strategy, together with direct-to-customer commercialization, provides the Company with an advantage relative to traditional and other established auto manufacturers, Fisker’s better capitalized competitors may seek to undercut the pricing or compete directly with Fisker’s designs by replicating their features. In addition, while Fisker believes that its strong management team forms the necessary backbone to execute on its strategy, the Company expects to compete for talent, as Fisker’s future growth will depend on hiring qualified and experienced personnel to operate all aspects of the business as it prepares to launch commercial operations.

Commercialization

Fisker currently anticipates commencing production of the Fisker Ocean on November 17, 2022, with initial customer deliveries expected shortly thereafter. In July 2022, Fisker began accepting deposits for up to 5,000 orders of the launch edition Fisker Ocean One, which required $5,000, or approximate local currency equivalent, down payments. In response to the Inflation Reduction Act, Fisker accepted orders for Fisker Oceans prior to August 16, 2022, the date of enactment. As of November 2, 2022, we have over 62,000 Fisker Ocean reservations and orders and over 5,000 Fisker PEAR reservations, net of cancellations.

Fisker plans to initially market its vehicles through its direct-to-consumer sales model, leveraging its proprietary Flexee app, which will serve as a one-stop-shop for all components of its EMaaS business model. Over time, Fisker plans to develop Fisker Lounges in select cities in North America and Europe, which will enable prospective customers to experience Fisker vehicles through test drives and virtual and augmented reality. Fisker also intends to enter, in each launch market, into third-party service partnerships with credible vehicle service organizations with established service facilities, operations and technicians. These companies’ services will be integrated into and booked via the Flexee app in order to create a hassle-free, app-based service experience for Fisker’s customers delivered at home, at work, or with a pick-up and delivery service booked online. As an example in Europe, Fisker has entered into non-exclusive Memorandum of Understandings with Bridgestone and the Mekonomen Group related to fleet management services. Fisker will continue to seek opportunities to build the service partnership model.

Over time, Fisker aims to transform the EV sales model through the flexible lease model, under which customers will be able to utilize a vehicle on a month-to-month basis at an anticipated initial cost of $379 per month for the base

28

model, with the ability to terminate the lease or upgrade their vehicle at any time. Development of a fleet of high value, sustainable EVs will allow Fisker to offer these flexible lease options to capture more customers. Fisker intends to require a non-refundable up-front payment of $3,000 under the flexible lease model, which the Company believes will reduce its cash flow risk and incentivize customers to keep their vehicles for a period of time. Fisker anticipates that, over time, it will acquire a substantial fleet of used EVs available for sale or further flexible lease by Fisker, which it believes will enhance its ability to maintain its premium brand and pricing.

Fisker believes its digital, direct-to-consumer sales model reflects today’s changing consumer preferences and is less capital intensive and expensive than the traditional automotive sales models. Fisker’s commercialization strategy is, however, relatively novel for the car industry, which has historically relied on extensive advertising and marketing, as well as relationships with physical car dealership networks. Should Fisker’s assumptions about the commercialization of its vehicles prove overly optimistic or if the Company is unable to develop, obtain or maintain the direct-to-consumer marketing or service technology upon which its prospective customer base would rely, Fisker may incur delays to its ability to commercialize the Fisker Ocean. This may also lead Fisker to make changes in its commercialization plans, which could result in unanticipated marketing delays or cost overruns, which could in turn adversely impact margins and cash flows or require Fisker to change its pricing. Further, to the extent that Fisker doesn’t generate the margins it expects upon commercialization of the Fisker Ocean, Fisker may be required to raise additional debt or equity capital, which may not be available or may only be available on terms that are onerous to Fisker and its stockholders.

Regulatory Landscape

Fisker operates in an industry that is subject to and benefits from environmental regulations, which have generally become more stringent over time, particularly across developed markets. Regulations in Fisker’s target markets include economic incentives to purchasers of EVs, tax credits for EV manufacturers, and economic penalties that may apply to a car manufacturer based on its fleet-wide emissions ratings. See “Information about Fisker—Government Regulation and Credits.” For example, depending on the national political situation, a federal tax credit may be available to U.S. purchasers of Fisker vehicles, which would lower the effective estimated purchase price of the base Fisker Ocean model. Previously, this credit was a maximum of $7,500, which could bring the Fisker Ocean price below $30,000.Subject to pending implementation guidance from the US Treasury Department and international discussions with the EU, the Inflation Reduction Act of 2022, as adopted, introduced North American final assembly and battery component requirements that make Fisker Ocean customers in the US, without a binding order pre-dating adoption of the Act, ineligible for the clean vehicle credit. Further, the registration and sale of Zero Emission Vehicles (“ZEVs”) in California will earn Fisker ZEV credits, which it may be able to sell to other OEMs or tier-one automotive suppliers seeking to access the state’s market. Several other U.S. states have adopted similar standards. From time to time, governments may change the economic incentives to purchasers of EVs which could impact Fisker customers. For example, recent German and US legislative efforts could reduce or eliminate federal tax incentives available for purchasers of Fisker vehicles in those markets. In the European Union, where European car manufacturers are penalized for excessive fleet-wide emissions on the one hand and incentivized to produce low emission vehicles on the other, Fisker believes it may have the opportunity to monetize the ZEV technology through fleet emissions pooling arrangements with car manufacturers that may not otherwise meet their CO2 emissions targets. While Fisker expects environmental regulations to provide a tailwind to its growth, it is possible for certain regulations to result in margin pressures. For example, regulations that effectively impose EV production quotas on auto manufacturers may lead to an oversupply of EVs, which in turn could promote price decreases. As a pure play EV company, Fisker’s margins could be particularly and adversely impacted by such regulatory developments. Trade restrictions and tariffs, while historically minimal between the European Union and the United States where most of Fisker’s production and sales are expected, are subject to unknown and unpredictable change that could impact Fisker’s ability to meet projected sales or margins.

Key trends and economic factors affecting the automotive industry

Recent outbreaks in certain regions, including China where lock-downs due to COVID-19 have been imposed in more than 40 cities, may cause intermittent COVID-19-related disruptions in our supply chain. Though we have no operations or suppliers, who will produce Fisker Ocean components, located in Russia or Ukraine, our FM29 platform used to manufacture the Fisker Ocean is located in Graz, Austria and some of our key supplier operations are located in European countries. Actions taken by Russia in Ukraine could impact our suppliers, particularly our lower tier suppliers.

Globally, prices for commodities remain volatile for base metals (e.g., steel and aluminum), precious metals (e.g., palladium), and raw materials that are used in batteries for electric vehicles (e.g., lithium, cobalt, and nickel for batteries). Our Fisker Ocean is comprised mainly of steel which has experienced less volatility compared to aluminum. Further, we have agreed to our pricing in 2021 and early 2022 for our components under our long-term supply contracts, which reduces our exposure to commodity volatility and inflation in 2022, however some suppliers have the ability to adjust prices based on a three-month rolling average for certain commodities. In recent months, commodity pricing has moderated and foreign

29

exchange has become more favorable. Our battery chemistries consist of a high-capacity pack that uses a lithium nickel manganese cobalt (NMC) cell chemistry with the second high-value pack based on lithium-ion phosphate (LFP) chemistry. We expect most of our vehicles sold in 2022 and 2023 will have premium trim levels, where margins are less sensitive, and NMC battery packs compared to our base model Sport which uses the LFP battery packs that do not contain nickel or cobalt.

Basis of Presentation

Fisker currently conducts its business through one operating segment. As a company with no commercial operations and limited revenues derived from merchandise sales, which is not core to our ongoing business, Fisker’s activities to date have been limited and were conducted primarily in the United States and its historical results are reported under U.S. GAAP and in U.S. dollars. Upon commencement of commercial operations, Fisker expects to expand its global operations substantially, including in the USA and the European Union, and as a result Fisker expects its future results to be sensitive to foreign currency transaction and translation risks and other financial risks that are not reflected in its historical financial statements. As a result, Fisker expects that the financial results it reports for periods after it begins commercial operations will not be comparable to the financial results included in this report or Fisker’s Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022.

Components of Results of Operations

Fisker is an early stage company and its historical results may not be indicative of its future results for reasons that may be difficult to anticipate. Accordingly, the drivers of Fisker’s future financial results, as well as the components of such results, may not be comparable to Fisker’s historical or projected results of operations.

Revenues

Fisker intends to commence production of its Fisker Ocean on November 17, 2022 and expects it will deliver a commercial fleet of 15 vehicles in the fourth quarter of 2022, and, following EPA and European certifications, deliveries to retail customers in 2023. Vehicle sales, related options and accessories will be our primary source of revenue while sales of Fisker branded apparel and goods will be an ancillary source of revenue.

Cost of Goods Sold

Fisker will record cost of goods sold from vehicle sales in the fourth quarter of 2022. Cost of goods sold will comprise mainly of vehicle components and parts, including batteries, labor costs, amortized tooling costs and capitalized costs associated with the Magna warrants, and reserves for estimated warranty expenses. Lower volumes of production in the fourth quarter of 2022 and the first half of 2023 will cause Fisker to evaluate whether inventory costs per vehicle exceed net realizable values as each vehicle produced will bear a higher proportion of our fixed manufacturing costs.

General and Administrative Expense

General and administrative expenses consist mainly of personnel-related expenses for Fisker’s executive and other administrative functions, advertising and marketing expenses, and expenses for outside professional services, including legal, accounting and other advisory services.

Fisker is expanding its personnel headcount. Accordingly, Fisker expects its general and administrative expenses to increase in the near term and for the foreseeable future. For example, the company expects general and administrative expenses, excluding stock-based compensation expenses (refer to non-GAAP financial measure discussed below), in the year ended December 31, 2022 to range between $105.0 million and $120.0 million as compared to $42.4 million in the year ended December 31, 2021. Upon commencement of commercial operations, Fisker also expects general and administrative expenses to include facilities, marketing and advertising costs.

Research and Development Expense

To date, Fisker’s research and development expenses have related to the development and design of the Fisker Ocean model and production of prototype and PTO vehicles tested for safety and homologation in advance of the start of vehicle production in the fourth quarter of 2022. As Fisker ramps up for commercial operations, it anticipates that research

30

and development expenses will increase for the foreseeable future as the Company expands its hiring of engineers and designers and continues to invest in new vehicle model design and development of technology. For example, the company expects research and development expenses, excluding stock-based compensation expenses (refer to non-GAAP financial measure discussed below), in the year ended December 31, 2022 to range between $330.0 million and $380.0 million as compared to $286.9 million in the year ended December 31, 2021.

Interest Expense

Interest expense consists primarily of interest expense associated with the convertible senior notes.

Income Tax Expense / Benefit

Fisker’s income tax provision consists of an estimate for U.S. federal and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. Fisker maintains a valuation allowance against the full value of its U.S. and state net deferred tax assets because Fisker believes the recoverability of the tax assets is not more likely than not.

Results of Operations

Comparison of the Three-Months Ended September 30, 2022 to the Three-Months Ended September 30, 2021

The following table sets forth Fisker’s historical operating results for the periods indicated:

	Three-Months Ended September 30,
	2022		2021		$ Change		% Change
	(dollar amounts in thousands)
Revenue	$	14	$	15	$	(1)	(7)	%
Cost of goods sold	6		16		(10)		(63)	%
Gross Margin	8		(1)		9		(900)	%
Operating costs and expenses:
General and administrative	22,102		10,273		11,829		115	%
Research and development	117,885		99,291		18,594		19	%
Total operating costs and expenses	139,987		109,564		30,423		28	%
Loss from operations	(139,979)		(109,565)		(30,414)		28	%
Other income (expense):
Other income (expense)	270		(84)		354		(421)	%
Interest income	3,075		155		2,920		n.m.
Interest expense	(4,693)		(2,147)		(2,546)		119	%
Foreign currency gain/(loss)	(7,285)		1,797		(9,082)		n.m.
Unrealized loss recognized on equity securities	(730)		—		(730)		n.m.
Total other income (expense)	(9,363)		(279)		(9,084)		n.m.
Net Loss	$	(149,342)	$	(109,844)	$	(39,498)	36	%

n.m. = not meaningful.

Revenue and cost of goods sold

In 2021, Fisker launched its merchandise “Fisker Edition” where it sells direct to consumers Fisker branded apparel and goods. Sales of branded apparel and goods totaled $14 thousand with related costs of goods sold of $6 thousand resulting in a gross profit of $8 thousand during the three month period. Merchandise sales are ancillary revenues that will continue in the future but are not expected to constitute a significant portion of operations once Fisker commences production and commercialization of its vehicles.

31

General and Administrative

General and administrative expenses increased by $11.8 million or 115% from $10.3 million during the three months ended September 30, 2021 to $22.1 million during the three month period ended September 30, 2022, primarily due to increased salaried employee headcount, improved benefits in line with our human capital and ESG goals designed to offer potential employees competitive compensation packages, professional fees and marketing and advertising. Professional fees expense was approximately $1.4 million for the third quarter of 2022 compared to approximately $1.3 million for the same period in 2021. Marketing and advertising efforts resulted in expense of $1.9 million for the third quarter of 2022 compared to minimal efforts in the corresponding third quarter of 2021 as the Company implemented its marketing strategies in the fourth quarter of 2021. General and administrative expenses includes stock-based compensation expense of $3.9 million and $0.2 million for three-months ended September 30, 2022 and 2021, respectively. General and administrative expenses will increase during the remainder of the 2022 fiscal year as the Company continues to increase its workforce, engage with advisors to establish global strategies for direct and indirect taxes, and implementing entity-wide changes in its IT systems. Overall, total headcount for the Company increased to approximately 700 employees as of October 31, 2022, compared to 327 employees as of December 31, 2021.

Research and Development

Research and development expenses increased by approximately $18.6 million or 19% from $99.3 million during the three months ended September 30, 2021, to $117.9 million during the three months ended September 30, 2022. The increase primarily relates to higher headcount and achievement of key milestones in engineering and development of the design of components as the Company moves towards the planned start of production on November 17, 2022. In the third quarter of 2022, we continued the development phase of our prototype Fisker Oceans, which includes the purchase and expense of $31.0 million of prototype parts, and testing and validation. In addition, we began trial production runs to assemble vehicles using our tooling and equipment. The vehicles produced will be used for engineering testing, establishing and optimizing vehicle assembly and manufacturing processes, and homologation as we complete the final steps toward achievement of pre-serial production. The third quarter of 2022 reflects higher research and development expenses as our last major design milestones were met. Reductions in research and development efforts for the Fisker Ocean over the remainder of 2022 are expected to be offset by increases in the development efforts associated with the Fisker PEAR and Ronin, and our engineers who worked on the Fisker Ocean will be deployed to work on these new vehicle programs . Research and development expenses includes stock-based compensation expense of $7.3 million and $0.8 million for the three-months ended September 30, 2022 and 2021, respectively.

Interest Expense

Interest expense amounted to $4.7 million and $2.1 million during the three months ended September 30, 2022 and 2021, respectively due to the sale, in August 2021, of $667.5 million principal amount of 2.50% convertible senior notes. Interest expense in the subsequent three-month period throughout calendar year 2022 will approximate $4.5 million, including accretion of debt issuance costs.

Foreign Currency Gain (Loss)

The Company recorded foreign currency loss of $7.3 million during the three months ended September 30, 2022, compared to gains of $1.8 million during the three-months ended September 30, 2021, due to remeasurement losses on Euro-denominated monetary assets caused by weakening Euro currency rates. For the remainder of 2022, we expect EUR denominated transactions associated with our foreign operations and services provided by suppliers will increase and will subject Fisker to greater fluctuation in realized gain and losses from foreign currencies.

Unrealized Gains Recognized on Equity Securities

Unrealized losses recognized on equity securities still held as of September 30, 2022 totaled $0.7 million for the three-months ended September 30, 2022.

Net Loss

Net loss was $149.3 million during the three-months ended September 30, 2022, an increase of approximately $39.5 million from a net loss of $109.8 million during the three-months ended September 30, 2021, for the reasons discussed above.

32

Comparison of the Nine-Months Ended September 30, 2022 to the Nine-Months Ended September 30, 2021

The following table sets forth Fisker’s historical operating results for the periods indicated:

	Nine-Months EndedSeptember 30
	2022		2021		$ Change	% Change
	(dollar amounts in thousands)
Revenue	$	36	$	65	(29)	(45)	%
Cost of goods sold	25		47		(22)	(47)	%
Gross Margin	11		18		(7)	(39)	%
Operating costs and expenses:
General and administrative	61,615		24,012		37,603	157	%
Research and development	290,505		171,807		118,698	69	%
Total operating costs and expenses	352,120		195,819		156,301	80	%
Loss from operations	(352,109)		(195,801)		(156,308)	80	%
Other income (expense):
Other income (expense)	(553)		(98)		(455)	n.m.
Interest income	4,693		415		4,278	n.m.
Interest expense	(13,827)		(2,147)		(11,680)	n.m.
Change in fair value of derivatives	—		(138,436)		138,436	(100)	%
Foreign currency gain/(loss)	(9,956)		3,158		(13,114)	n.m.
Unrealized loss recognized on equity securities	(5,640)		—		(5,640)	n.m.
Total other income (expense)	(25,283)		(137,108)		111,825	(82)	%
Net Loss	$	(377,392)	$	(332,909)	(44,483)	13	%

n.m.= not meaningful.

Revenue and cost of goods sold

In 2021, Fisker launched its merchandise “Fisker Edition” where it sells direct to consumers Fisker branded apparel and goods. Sales of branded apparel and goods totaled $36.0 thousand with related costs of goods sold of $25.0 thousand resulting in a gross profit of $11.0 thousand during the nine-month period. Merchandise sales are ancillary revenues that will continue in the future but are not expected to constitute a significant portion of operations once Fisker commences production and commercialization of its vehicles.

General and Administrative

General and administrative expenses increased by $37.6 million or 157% from $24.0 million during the nine-months ended September 30, 2021 to $61.6 million during the nine-months ended September 30, 2022, primarily due to increased salaried employee headcount, improved benefits in line with our human capital and ESG goals designed to offer potential employees competitive compensation packages, and stock based compensation. Professional fees expense was approximately $10.9 million for the nine-months ended September 30, 2022 compared to approximately $4.2 million for the same period in 2021. Marketing and advertising efforts resulted in expense of approximately $7.6 million for the nine-months ended September 30, 2022 compared to minimal efforts in the corresponding period of 2021 as the Company implemented its marketing strategies in the fourth quarter of 2021. General and administrative expenses includes stock-based compensation expense of $6.1 million and $0.8 million for the nine-months ended September 30, 2022 and 2021, respectively.

33

Research and Development

Research and development expenses increased by $118.7 million or 69% from $171.8 million during the nine-months ended September 30, 2021, to $290.5 million during the nine-months ended September 30, 2022. The increase primarily relates to higher headcount and achievement of key milestones in engineering and development of the design of components as the Company moves towards the planned start of production on November 17, 2022. During 2022, we completed the development phase of our prototype Fisker Oceans, which includes the purchase and expense of $89.1 million of prototype parts, and testing and validation. In addition, we began trial production runs to assembly vehicles using our tooling and equipment. The vehicles produced will be used for engineering testing, establishing and optimizing vehicle assembly and manufacturing processes, and homologation as we complete the final steps toward achievement of pre-serial production. The nine-months ended September 30, 2022 reflects higher research and development expenses as our last major design milestones were met. Reductions in research and development efforts for the Fisker Ocean over the remainder of 2022 are expected to be offset by increases in the development efforts associated with the Fisker PEAR and Ronin, and our engineers who worked on the Fisker Ocean will be deployed to work on these new vehicle programs. Research and development expenses includes stock-based compensation expense of $11.3 million and $3.3 million for the nine-months ended September 30, 2022 and 2021, respectively.

Interest Expense

Interest expense amounted to $13.8 million and $2.1 milion during the nine-months ended September 30, 2022 and 2021 due to the sale, in August 2021, of $667.5 million principal amount of 2.50% convertible senior notes. Interest expense in the subsequent three-month period throughout calendar year 2022 will approximate $4.5 million, including accretion of debt issuance costs.

Change in Fair Value of Derivative

During nine-months ended September 30, 2021, the Company’s public and private warrants were outstanding resulting in a non-cash fair value adjustment of $138.4 million. No gain or loss was recognized during the nine-months ended September 30, 2022. The public and private warrants were exercised or redeemed and no longer outstanding by the end of the second quarter of 2021.

Foreign Currency Gain (Loss)

The Company recorded foreign currency losses of $10.0 million during the nine-months ended September 30, 2022, compared to gains of $3.2 million during the nine-months ended September 30, 2021, due to remeasurement losses on Euro-denominated monetary assets, including Euros purchases, caused by weakening Euro currency rates. For the remainder of 2022, we expect EUR denominated transactions associated with our foreign operations and services provided by suppliers will increase and will subject Fisker to greater fluctuation in realized gain and losses from foreign currencies.

Unrealized Gains Recognized on Equity Securities

Unrealized losses recognized on equity securities still held as of September 30, 2022 totaled $5.6 million for the nine-months ended September 30, 2022.

Net Loss

Net loss was $377.4 million during the nine-months ended September 30, 2022, an increase of approximately $44.5 million from a net loss of $332.9 million during the nine-months ended September 30, 2021, for the reasons discussed above.

Liquidity and Capital Resources

As of the date of this Form 10-Q, Fisker has yet to generate any revenue from its core business operations. To date, Fisker has funded its capital expenditures and working capital requirements through equity and convertible notes, as further discussed below. Fisker’s ability to successfully commence its primary commercial operations and expand its business may depend on many factors, including its working capital needs, the availability of equity or debt financing and, over time, its ability to generate cash flows from operations.

As of September 30, 2022, Fisker’s cash and cash equivalents amounted to $824.7 million.

34

In May 2022, we entered into the Distribution Agreement, pursuant to which Fisker established an ATM Program. Pursuant to the ATM Program, Fisker may, at its discretion and from time to time during the term of the Distribution Agreement, sell, through the Agents, shares of its Class A Common Stock as would result in aggregate gross proceeds to Fisker of up to $350 million by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415 of the Securities Act of 1933, as amended, including without limitation sales made directly on the New York Stock Exchange, on any other existing trading market for the Class A Common Stock or to or through a market maker. In addition, the sales agents may also sell the shares of Class A Common Stock by any other method permitted by law, including, but not limited to, negotiated transactions. The Company issued 14,491,359 shares of Class A common stock during the nine-months ended September 30, 2022 for gross proceeds of $132.5 million, before $2.6 million of commissions and other direct incremental issuance costs, and, as of September 30, 2022, $217.5 million of Class A Common Stock is available for sale under the ATM Program.

In August 2021, we entered into a purchase agreement for the sale of an aggregate of $667.5 million principal amount of convertible senior notes due in 2026. The net proceeds from the issuance of the 2026 Notes were $562.2 million, net of debt issuance costs and the 2027 Capped Call Transactions discussed further in Note 8. The 2026 Notes mature on September 15, 2026, unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The 2026 Notes were not convertible as of September 30, 2022.

Fisker expects its capital expenditures and working capital requirements to increase substantially in the fourth quarter of 2022 and beyond, as it progresses toward production of the Fisker Ocean EV model, develop its customer support and marketing infrastructure and expand its research and development efforts. Fisker believes that its cash on hand will be sufficient to meet its working capital and capital expenditure requirements for a period of at least twelve months from the date of this Form 10-Q. Fisker may, however, need additional cash resources, including proceeds from the sale of up to $217.5 million of Class A common stock under the ATM Program, to fund its operations until it commences serial production levels of the Fisker Ocean due to changed business conditions or other developments, including unanticipated delays in negotiations with OEMs and tier-one automotive suppliers or other suppliers, supply chain challenges, disruptions due to COVID-19, competitive pressures, and regulatory developments, among other developments such as the collaboration on “Project PEAR” with Foxconn announced in February 2021. To the extent that Fisker’s current resources are insufficient to satisfy its cash requirements, Fisker may need to seek additional equity or debt financing. If the financing is not available, or if the terms of financing are less desirable than Fisker expects, Fisker may be forced to decrease its level of investment in product development or scale back its operations, which could have an adverse impact on its business and financial prospects.

Cash Flows

The following table provides a summary of Fisker’s cash flow data for the periods indicated:

	Nine Months Ended September 30,
	2022		2021
	( in thousands)
Net cash used in operating activities	$	(341,430)	$	(160,377)
Net cash used in investing activities	(167,256)		(81,828)
Net cash provided by financing activities	$	130,943	$	651,458

Cash Flows used in Operating Activities

Fisker’s net cash flows used in operating activities to date have been primarily comprised of costs related to research and development, payroll and other general and administrative activities. As Fisker continues to accelerate hiring in line with production of the Ocean, Fisker expects its cash used in operating activities to increase significantly before it starts to generate any material cash flows from its business. Lease commitments as of September 30, 2022, will result in cash payments of $2.6 million for the remainder of 2022, and $11.3 million for 2023, and $53.5 million for 2024 and thereafter. Structural improvements are required before Fisker can use its Fisker Lounges in the U.S. and Europe for its intended purposes. The timing for completion of the structural improvements is expected in the first half of 2023. During 2022, Fisker entered into a lease for commercial space dedicated to powertrain and battery research and development, which will be customized for Fisker's use, an industrial facility in Shanghai, China and Center+ locations based in Vienna, Austria and Copenhagen, Denmark for deliveries of our vehicles to our customers. In total, Fisker is projecting to use between $435.0 million and $500.0 million for combined SG&A and R&D activities during 2022.

35

Net cash used in operating activities increased by approximately $181.0 million from $160.4 million during the nine-months ended September 30, 2021 to $341.4 million during the nine-months ended September 30, 2022.

Cash Flows used in Investing Activities

Fisker’s cash flows used in investing activities, historically, have been comprised mainly of purchases of property and equipment. During the nine-months ended September 30, 2022, the Company acquired assets related to development of the Fisker Ocean and production of its parts that benefit our vehicle program development in future periods that totaled $157.3 million compared to $81.8 million during the nine-months ended September 30, 2021. Fisker continues to expect 2022 capital expenditures for manufacturing and development, testing and validation, tooling, manufacturing equipment, software licenses, and IT infrastructure to range between $280 million and $290 million of which we expect at least 50% is denominated in foreign currencies, as serial production tooling and equipment begins to be installed at both vehicle assembly and supplier facilities over the remainder of 2022.

Fisker used cash of $167.3 million for investing activities during the nine-months ended September 30, 2022, compared to $81.8 million during the corresponding nine-months ended September 30, 2021.

On July 28, 2021, the Company made a $10 million commitment for a private investment in public equity (PIPE) supporting the planned merger of leading European EV charging network, Allego with Spartan Acquisition Corp. III (NYSE: SPAQ), a publicly-listed special purpose acquisition company. The merger closed in the first quarter of 2022 which triggered our investment commitment resulting in a $10 million cash payment to acquire 1,000,000 class A common shares of Allego (NYSE: ALLG). Fisker was the exclusive electric vehicle automaker in the PIPE and, in parallel, has agreed to terms on a strategic partnership to deliver a range of charging options for its customers in Europe.

Cash Flows from Financing Activities

Through September 30, 2022, Fisker has financed its operations primarily through the sale of equity securities and convertible senior notes.

Net cash from financing activities was $130.9 million during the nine-months ended September 30, 2022, which was primarily due to the proceeds from the issuance of the ATM equity program of $132.5 million as well as aggregate proceeds from the exercise of stock options and collection of related statutory withholding taxes of $2.1 million. Net cash from financing activities was $651.5 million during the nine-months ended September 30, 2021 reflecting the proceeds of $667.5 million from the sale of convertible senior notes due in 2026, before payments for debt issuance costs of $8.5 million and $96.8 million for the purchase of a capped call option, as well as proceeds of $89.0 million from public warrant holders who exercised 7,733,400 warrants to acquire a corresponding equal number of Class A common stock.

Off-Balance Sheet Arrangements

Fisker is not a party to any off-balance sheet arrangements, as defined under SEC rules.

Non-GAAP Financial Measure

The accompanying table references non-GAAP adjusted loss from operations. This non-GAAP financial measure differs from the directly comparable GAAP financial measure due to adjustments made to exclude stock-based compensation expense. This non-GAAP financial measure is not a substitute for or superior to measures of financial performance prepared in accordance with generally accepted accounting principles in the United States (GAAP) and should not be considered as an alternative to any other performance measures derived in accordance with GAAP. The Company believes that presenting this non-GAAP financial measure provides useful supplemental information to investors about the Company in understanding and evaluating its operating results, enhancing the overall understanding of its past performance and future prospects, and allowing for greater transparency with respect to key financial metrics used by its management in financial and operational-decision making. However, there are a number of limitations related to the use of a non-GAAP measure and its nearest GAAP equivalents. For example, other companies may calculate non-GAAP measures differently, or may use other measures to calculate their financial performance, and therefore any non-GAAP measures the Company uses may not be directly comparable to similarly titled measures of other companies. Therefore, both GAAP financial measures of Fisker’s financial performance and the respective non-GAAP measures should be considered together. Please

36

see the reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure in the tables below.

	Three-Months Ended September 30,
	2022		2021
GAAP Loss from operations	(139,979)		(109,565)
Add: stock based compensation	$	11,166	$	1,043
Non-GAAP Adjusted loss from operations	$	(128,813)	$	(108,522)

	Nine Months Ended September 30,
	2022		2021
GAAP Loss from operations	(352,109)		(195,801)
Add: stock based compensation	17,426		4,078
Non-GAAP Adjusted loss from operations	$	(334,683)	$	(191,723)

Critical Accounting Policies and Estimates

Fisker’s financial statements have been prepared in accordance with GAAP. In the preparation of these financial statements, Fisker is required to use judgment in making estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported expenses incurred during the reporting periods. Fisker considers an accounting judgment, estimate or assumption to be critical when (1) the estimate or assumption is complex in nature or requires a high degree of judgment and (2) the use of different judgments, estimates and assumptions could have a material impact on the condensed consolidated financial statements.

For a description of our critical accounting policies and estimates, refer to Part II, Item 7, Critical Accounting Policies and Estimates in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022. There have been no material changes to our critical accounting policies and estimates since our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022.

Emerging Growth Company Status

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable.

Prior to December 31, 2021, Fisker was an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and elected to take advantage of the benefits of the extended transition period for new or revised financial accounting standards. Fisker has taken advantage of the benefits of the extended transition period, although it may decide to early adopt such new or revised accounting standards to the extent permitted by such standards. This may make it difficult or impossible to compare Fisker’s financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions because of the potential differences in accounting standards used. Effective December 31, 2021, Fisker exited its emerging growth company status and met the definition of a large accelerated filer, as defined under Rule 12b-2 of the Exchange Act. The accommodations afforded to an emerging growth company will no longer apply.

37

Recent Accounting Pronouncements

See Note 2 to the condensed consolidated financial statements included elsewhere in this Form 10-Q for more information about recent accounting pronouncements, the timing of their adoption, and Fisker’s assessment, to the extent it has made one, of their potential impact on Fisker’s financial condition and its results of operations and cash flows.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Fisker has not, to date, been exposed to material market risks given its early stage of operations. Upon commencing commercial operations, Fisker expects to be exposed to foreign currency translation and transaction risks and potentially other market risks, including those related to interest rates or valuation of financial instruments, among others.

Foreign Currency Risk

Fisker’s functional currency is the U.S. dollar, while certain of Fisker’s current and future subsidiaries are expected to have functional currencies in Euro, British Pound Sterling, Indian Rupee, and Chinese Yuan Renminbi reflecting their principal operating markets. Once Fisker commences commercial operations, it expects to be exposed to both currency transaction and translation risk. For example, Fisker expects its contracts with OEMs and/or tier-one automotive suppliers to be transacted in Euro or other foreign currencies. In addition, Fisker expects that certain of its subsidiaries will have functional currencies other than the U.S. dollar, meaning that such subsidiaries’ results of operations will be periodically translated into U.S. dollars in Fisker’s condensed consolidated financial statements, which may result in revenue and earnings volatility from period to period in response to exchange rates fluctuations. The Company assesses whether opportunities exist to purchase foreign currencies with U.S. dollars to take advantage of favorable exchange rates. In April and July 2022, the Company purchased 130.1 million Euros for 140.0 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.076 Euro and 50.0 million Euros for 50.9 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.018 Euro.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that are designed to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required financial disclosures.

Management, including the participation of our Chief Executive Officer and our Chief Financial Officer, conducted an evaluation (pursuant to Rule 13a-15(b)under the Exchange Act) of the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Report. In designing and evaluating the disclosure controls and procedures, our management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that our management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2022, the Company’s disclosure controls and procedures were effective at the reasonable level.

Changes in Internal Control over Financial Reporting

During the quarter ended September 30, 2022, we continue to implement a new Enterprise Resource Planning (“ERP”) system, which replaced our existing financial systems and is designed to improve the efficiency and effectiveness of the Company’s financial reporting and business processes as well as provide timely information to our management team. In connection with this ERP implementation, we are updating our internal controls over financial reporting, as necessary, to accommodate modifications to our business processes and accounting procedures. While we do not believe the ERP implementation will have an adverse effect on our internal controls over financial reporting, we will continue to evaluate control changes as part of our assessment of control design and effectiveness throughout 2022. Except as disclosed above, there was no change in our internal control over financial reporting that occurred during the quarter ended September 30, 2022, which has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

38

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

For a description of our material pending legal proceedings, please see Note 13, Commitments and Contingencies, to the unaudited condensed consolidated financial statements included elsewhere in this report.

From time to time, we may become involved in legal proceedings arising in the ordinary course of business. We are not currently a party to any litigation or legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, negative publicity and reputational harm and other factors.

Item 1A. Risk Factors

In addition to the information set forth below and other information contained elsewhere in this report, you should carefully consider the factors discussed in Part I, Item 1A. Risk Factors in our most recent Annual Report filed on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022, which could materially affect our business, financial condition or future results.

The unavailability, reduction or elimination of government and economic incentives could have a material adverse effect on our business, prospects, financial condition and operating results.

Any reduction, elimination, or discriminatory application of government subsidies and economic incentives because of policy changes, or the reduced need for such subsidies and incentives due to the perceived success of the electric vehicle or other reasons, may result in the diminished competitiveness of the alternative fuel and electric vehicle industry generally or our electric vehicles in particular. This could materially and adversely affect the growth of the alternative fuel automobile markets and our business, prospects, financial condition and operating results. For example, recent German and U.S. legislative efforts, including the Inflation Reduction Act, could reduce or eliminate federal tax incentives available for purchasers of Fisker vehicles in those markets.

While certain tax credits and other incentives for alternative energy production, alternative fuel and electric vehicles have been available in the past, there is no guarantee these programs will be available in the future. If current tax incentives are not available in the future, our financial position could be harmed.

The military conflict between Russia and Ukraine, and the global response to this conflict, may adversely affect our business and results of operations.

In response to the military conflict between Russia and Ukraine, the U.S., U.K. E.U., and others have imposed significant new sanctions and export controls against Russia and certain Russian individuals and entities. This conflict has also resulted in significant volatility and disruptions to the global markets. It is not possible to predict the short- or long-term implications of this conflict, which could include but are not limited to further sanctions, uncertainty about economic and political stability, increases in inflation rates and energy prices, supply chain challenges and adverse effects on currency exchange rates and financial markets. In addition, the U.S. government has reported that U.S. sanctions against Russia in response to the conflict could lead to an increased threat of cyberattacks (including increased risk of data breach and other threats from ransomware, destructive malware, distributed denial-of-service attacks, as well as fraud, spam, and fake accounts, or other illegal activity conducted generally by bad actors seeking to take advantage of us, our partners or end-customers) against U.S. companies. These increased threats could pose risks to the security of our information technology systems, our network and our product offerings and/or service offerings for our products, as well as the confidentiality, availability and integrity of our data.

We have operations, as well as potential new customers, in Europe. If the conflict extends beyond Ukraine or further intensifies, it could have an adverse impact on our operations in Europe or other affected areas. While we do not offer any services in Ukraine, we are continuing to monitor the situation in that country and globally as well as assess its potential impact on our business, including the supply of natural gas in Europe . Although neither Russia nor Belarus constitutes a material portion of our business (if any), a significant escalation or further expansion of the conflict's current scope or related disruptions to the global markets could have a material adverse effect on our results of operations.

39

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Not applicable.

Item 3. Defaults Upon Senior Securities.

Not applicable

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information.

Not applicable

Item 6. Exhibits.

		Incorporated by Reference
Exhibit No.	Exhibit Title	Form	File No.	Exhibit No.	Filing Date	Filed or Furnished Herewith
31.1	Certification of Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act					X
31.2	Certification of Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Exchange Act					X
32.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
32.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
101.INS	XBRL Instance Document.					X
101.SCH	XBRL Taxonomy Extension Schema Document.					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.					X
104	Coverpage Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)					X

40

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on November 7, 2022

FISKER INC.
By:	/s/ Dr. Geeta Gupta-Fisker
Name:	Dr. Geeta Gupta-Fisker
Title:	Chief Financial Officer and Chief Operating Officer

41

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Henrik Fisker, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Fisker Inc. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2022	/s/ Henrik Fisker
	Henrik Fisker
	Chairman, President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Dr. Geeta Gupta-Fisker, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Fisker Inc. (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:November 7, 2022	/s/ Dr. Geeta Gupta-Fisker
	Dr. Geeta Gupta-Fisker
	Chief Financial Officer & Chief Operating Officer
	(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Fisker Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Henrik Fisker, Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2022	/s/ Henrik Fisker
	Henrik Fisker
	Chairman, President & Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Fisker Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Dr. Geeta Gupta-Fisker, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2022	/s/ Dr. Geeta Gupta-Fisker
	Dr. Geeta Gupta-Fisker
	Chief Financial Officer & Chief Operating Officer
	(Principal Financial Officer)

XML

Cover Page - shares	9 Months Ended
	Sep. 30, 2022	Nov. 03, 2022
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-39160
Entity Registrant Name	Fisker Inc./DE
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	82-3100340
Entity Address, Address Line One	1888 Rosecrans Avenue
Entity Address, City or Town	Manhattan Beach
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90266
City Area Code	833
Local Phone Number	434-7537
Title of 12(b) Security	Class A Common Stock, par value of $0.00001 per share
Trading Symbol	FSR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001720990
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		179,556,338
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		132,354,128

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 824,696	$ 1,202,439
Prepaid expenses and other current assets	35,039	30,423
Equity investment	4,360	0
Total current assets	864,095	1,232,862
Non-current assets:
Property and equipment, net	235,585	85,643
Intangible assets	251,609	231,525
Right-of-use assets, net	27,804	18,285
Other non-current assets	32,963	24,637
Total non-current assets	547,961	360,090
TOTAL ASSETS	1,412,056	1,592,952
Current liabilities:
Accounts payable	18,277	28,143
Accrued expenses	99,433	79,634
Lease liabilities	5,876	4,552
Total current liabilities	123,586	112,329
Non-current liabilities:
Customer deposits	14,153	6,300
Lease liabilities	23,234	14,933
Convertible senior notes	660,395	659,348
Total non-current liabilities	697,782	680,581
Total liabilities	821,368	792,910
COMMITMENTS AND CONTINGENCIES (Note 13)
Stockholders’ equity:
Preferred stock, $0.00001 par value; 15,000,000 shares authorized; no shares issued and outstanding as of September 30, 2022 and December 31, 2021	0	0
Additional paid-in capital	1,587,322	1,419,284
Accumulated deficit	(996,637)	(619,245)
Total stockholders’ equity	590,688	800,042
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	1,412,056	1,592,952
Class A Common Stock
Stockholders’ equity:
Common stock, value	2	2
Class B Common Stock
Stockholders’ equity:
Common stock, value	$ 1	$ 1

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Preferred stock, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Class A Common Stock
Common stock par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	750,000,000	750,000,000
Common stock, issued (in shares)	179,493,167	164,377,306
Common stock, outstanding (in shares)	179,493,167	164,377,306
Class B Common Stock
Common stock par value (in dollars per share)	$ 0.00001	$ 0.00001
Common stock, authorized (in shares)	150,000,000	150,000,000
Common stock, issued (in shares)	132,354,128	132,354,128
Common stock, outstanding (in shares)	132,354,128	132,354,128

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenue	$ 14	$ 15	$ 36	$ 65
Cost of goods sold	6	16	25	47
Gross margin	8	(1)	11	18
Operating costs and expenses:
General and administrative	22,102	10,273	61,615	24,012
Research and development	117,885	99,291	290,505	171,807
Total operating costs and expenses	139,987	109,564	352,120	195,819
Loss from operations	(139,979)	(109,565)	(352,109)	(195,801)
Other income (expense):
Other income (expense), net	270	(84)	(553)	(98)
Interest income	3,075	155	4,693	415
Interest expense	(4,693)	(2,147)	(13,827)	(2,147)
Change in fair value of derivatives	0	0	0	(138,436)
Foreign currency gain (loss)	(7,285)	1,797	(9,956)	3,158
Unrealized loss recognized on equity securities	(730)	0	(5,640)	0
Total other income (expense)	(9,363)	(279)	(25,283)	(137,108)
Net loss	$ (149,342)	$ (109,844)	$ (377,392)	$ (332,909)
Net loss per common share
Net loss per share attributable to Class A and Class B Common shareholders- Basic (in dollars per share)	$ (0.49)	$ (0.37)	$ (1.26)	$ (1.15)
Net loss per share attributable to Class A and Class B Common shareholders- Diluted (in dollars per share)	$ (0.49)	$ (0.37)	$ (1.26)	$ (1.15)
Weighted average shares outstanding
Weighted average Class A and Class B Common shares outstanding- Basic (in shares)	303,224,595	296,133,530	299,462,065	290,445,265
Weighted average Class A and Class B Common shares outstanding- Diluted (in shares)	303,224,595	296,133,530	299,462,065	290,445,265

XML

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Additional Paid-in Capital	Receivable For Warrant Exercises	Accumulated deficit	Class A Common Stock Common Stock	Class B Common Stock Common Stock
Beginning balance (in shares) at Dec. 31, 2020					144,912,362	132,354,128
Beginning balance at Dec. 31, 2020	$ 907,130	$ 1,055,128	$ (96)	$ (147,904)	$ 1	$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	4,078	4,078
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings (in shares)					1,095,446
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	(53)	(53)
Exercise of warrants (in shares)					27,751,587
Exercise of warrants	365,922	365,463	458		$ 1
Shares surrendered upon exercise of warrants (in shares)					(9,943,067)
Shares surrendered upon exercise of warrants	(384)		(384)
Purchase of capped call option	(96,788)	(96,788)
Stock issuance costs and redemption of unexercised warrants	0	(22)	22
Recognition of Magna warrants	58,040	58,040
Net loss	(332,909)			(332,909)
Ending balance (in shares) at Sep. 30, 2021					163,816,328	132,354,128
Ending balance at Sep. 30, 2021	905,036	1,385,846	0	(480,813)	$ 2	$ 1
Beginning balance (in shares) at Jun. 30, 2021					163,711,901	132,354,128
Beginning balance at Jun. 30, 2021	1,110,590	1,481,556		(370,969)	$ 2	$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	1,043	1,043
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings (in shares)					104,427
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	35	35
Purchase of capped call option	(96,788)	(96,788)
Net loss	(109,844)			(109,844)
Ending balance (in shares) at Sep. 30, 2021					163,816,328	132,354,128
Ending balance at Sep. 30, 2021	905,036	1,385,846	$ 0	(480,813)	$ 2	$ 1
Beginning balance (in shares) at Dec. 31, 2021					164,377,306	132,354,128
Beginning balance at Dec. 31, 2021	800,042	1,419,284		(619,245)	$ 2	$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 17,426	17,426
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings (in shares)	186,491				624,502
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	$ 556	556
Recognition of Magna warrants	20,084	20,084
Shares issued under "At-the-market" offering, net of stock issuance costs (in shares)					14,491,359
Shares issued under "At-the-market" offering, net of stock issuance costs	129,972	129,972
Net loss	(377,392)			(377,392)
Ending balance (in shares) at Sep. 30, 2022					179,493,167	132,354,128
Ending balance at Sep. 30, 2022	590,688	1,587,322		(996,637)	$ 2	$ 1
Beginning balance (in shares) at Jun. 30, 2022					166,279,680	132,354,128
Beginning balance at Jun. 30, 2022	606,370	1,453,662		(847,295)	$ 2	$ 1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	11,166	11,166
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings (in shares)					110,279
Exercise of stock options and issuance of restricted stock unit awards, net of statutory tax withholdings	41	41
Recognition of Magna warrants	6,695	6,695
Shares issued under "At-the-market" offering, net of stock issuance costs (in shares)					13,103,208
Shares issued under "At-the-market" offering, net of stock issuance costs	115,758	115,758
Net loss	(149,342)			(149,342)
Ending balance (in shares) at Sep. 30, 2022					179,493,167	132,354,128
Ending balance at Sep. 30, 2022	$ 590,688	$ 1,587,322		$ (996,637)	$ 2	$ 1

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash Flows from Operating Activities:
Net loss	$ (377,392)	$ (332,909)
Reconciliation of net loss to net cash used in operating activities:
Stock-based compensation	17,426	4,078
Depreciation	1,212	397
Amortization of right-of-use asset	3,054	1,683
Accretion of debt issuance costs	1,047	153
Change in fair value of derivative liabilities	0	138,436
Unrealized loss recognized on equity securities	5,640	0
Unrealized foreign currency loss	13,301	(1,693)
Changes in operating assets and liabilities:
Prepaid expenses and other assets	(12,942)	(12,945)
Accounts payable and accrued expenses	2,319	41,891
Customer deposits	7,853	1,558
Change in operating lease liability	(2,948)	(1,026)
Net cash used in operating activities	(341,430)	(160,377)
Cash Flows from Investing Activities:
Acquisition of equity investment	(10,000)	0
Purchases of property and equipment and intangible asset	(157,256)	(81,828)
Net cash used in investing activities	(167,256)	(81,828)
Cash Flows from Financing Activities:
Proceeds from the issuance of convertible notes	0	667,500
Payments for debt issuance costs	0	(8,523)
Payments for capped call options	0	(96,788)
Proceeds from the exercise of warrants	0	89,023
Payment for stock issuance costs and redemption of unexercised warrants	0	(22)
Proceeds from the exercise of stock options	2,146	5,159
Payments for statutory withholding taxes	(1,436)	(4,891)
Proceeds from stock issuance under "At-the-market" offering	132,538	0
Payments for "At-the-market" issuance costs	(2,305)	0
Net cash provided by financing activities	130,943	651,458
Net increase (decrease) in cash and cash equivalents	(377,743)	409,253
Cash and cash equivalents, beginning of the period	1,202,439	991,158
Cash and cash equivalents, end of the period	824,696	1,400,411
Supplemental disclosure of cash flow information
Cash paid for interest	$ 17,985	$ 0

XML

Overview of the Company

9 Months Ended

Sep. 30, 2022

Overview Of The Company [Abstract]

Overview of the Company

Overview of the Company

Fisker was originally incorporated in the State of Delaware on October 13, 2017 as a special purpose acquisition company under the name Spartan Energy Acquisition Corp. for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or similar business combination with one or more businesses. Spartan completed its initial public offering in August 2018. On October 29, 2020, Spartan’s wholly-owned subsidiary merged with and into Fisker Holdings Inc. (f/k/a Fisker Inc.), a Delaware corporation (“Legacy Fisker”), with Fisker Holdings Inc. surviving the merger as a wholly-owned subsidiary of Spartan (the “Business Combination”). In connection with the Business Combination, Spartan changed its name to Fisker Inc.

Legacy Fisker was incorporated in the State of Delaware on September 21, 2016. In connection with its formation, the Company entered into stock purchase agreements with the Company’s founders, whereby the founders contributed certain intellectual property (primarily trademarks) and interests in Platinum IPR LLC. Platinum IPR LLC was an entity solely owned by the Company’s founders, which held Fisker trademarks registered in a variety of jurisdictions around the world. The founders’ transfer of its interest in Platinum IPR LLC and the transfer of trademarks was accounted for as a transfer of assets between entities under common control. The carrying amount of the transferred assets is recorded based on the prior carrying value, which was de minimis.

The Company’s common stock is listed on the NYSE under the symbol “FSR”. The Company’s warrants previously traded on the NYSE under the symbol “FSR WS” and on April 19, 2021, the NYSE filed a Form 25-NSE with respect to the warrants; the formal delisting of the warrants became effective ten days thereafter.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

Basis of Presentation

The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the SEC.

Unaudited Interim Financial Statements

The condensed consolidated balance sheet as of September 30, 2022, the condensed consolidated statements of operations and the condensed consolidated statements of changes in stockholders’ equity for the three-months and nine-months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine-months ended September 30, 2022 and 2021, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2021 was derived from the audited consolidated financial statements as of that date. The interim condensed consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022.

Comprehensive loss is not separately presented as the amounts are equal to net loss for the three and nine-months ended September 30, 2022 and 2021.

The interim condensed consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The condensed consolidated financial statements for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

Going Concern, Liquidity and Capital Resources

The Company evaluated whether there are any conditions and events, considered in the aggregate, that raise substantial doubt about its ability to continue as a going concern over the next twelve months from the date of filing this report. As of September 30, 2022, the Company had approximately $825 million in cash and cash equivalents. The Company believes that substantial doubt about its ability to continue as a going concern does not exist as its cash on hand will be sufficient to meet its working capital and capital expenditure requirements for a period of at least twelve months from the date of the filing of this Form 10-Q.

Since inception, the Company has yet to generate any revenue from its core business operations and has incurred significant accumulated losses of approximately $997 million. The Company expects to continue to incur significant operating losses for the foreseeable future. The Company expects its capital expenditures and working capital requirements to increase substantially in the fourth quarter of 2022 and beyond, as it progresses toward production of the Fisker Ocean EV model, develop its customer support and marketing infrastructure and expand its research and development efforts. The Company may, however, need additional cash resources, including proceeds of up to $217.5 million from the sale of Class A common stock under its at-the-market equity program, to fund its operations until it commences serial production levels of the Fisker Ocean and achieves a level of production and sales that provide for operating profitability. To the extent that Fisker’s current resources are insufficient to satisfy its cash requirements, the Company may need to seek additional equity or debt financing and there can be no assurance that the Company will be successful in its efforts. If the financing is not available, or if the terms of financing are less desirable than the Company expects, the Company may be forced to decrease its planned level of investment in product development or scale back its operations, which could have an adverse impact on its business and financial prospects.

Supplier Risk

The Company nominated suppliers during the year for engineering, development, testing, tooling and production of components for serial production of its vehicles. As of September 30, 2022, these supplier contracts do not represent unconditional purchase obligations with take-or-pay or specified minimum quantities provisions with the exception of an agreement securing battery capacity for the Fisker Ocean SUV. Under the terms of the agreement, the battery supplier will deliver two different battery solutions for the Fisker Ocean SUV, with an initial battery capacity of over 5 gigawatt-hours annually, from 2023 through 2025.

Use of Estimates

The preparation of the condensed consolidated financial statements in conformity with GAAP required management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the condensed consolidated financial statements and accompanying notes. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.

Fair Value Measurements

The Company follows the accounting guidance in ASC 820 Fair Value Measurement ("ASC 820"), for its fair value measurements of financial assets and liabilities measured at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance requires fair value measurements be classified and disclosed in one of the following three categories:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.

Level 3: Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Income Taxes

Income taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

There are transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain. As of September 30, 2022, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2021.

The Company’s income tax provision consists of an estimate for U.S. federal, foreign and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. The Company maintains a valuation allowance against the full value of its U.S. and state net deferred tax assets because the Company believes the recoverability of the tax assets is not more likely than not as of September 30, 2022.

Derivative Liability

The Company accounts for its public and private warrants as a derivative liability initially measured at their fair values and remeasured in the condensed consolidated statements of operations at the end of each reporting period. When the warrants are exercised, the corresponding derivative liability is de-recognized at the underlying fair value of the Class A common stock that is issued to the warrant holder less any cash paid in accordance with the warrant agreement. Upon either cash or cashless exercise, the de-recognized derivative liability results in an increase in additional paid in capital equal to the difference between the fair value of the underlying Class A common stock and its par value. A cashless exercise results in the warrant holder surrendering Class A common stock equal to the stated warrant exercise price based on the contractual terms in the warrant agreement that govern the cashless conversion.

Equity Awards

The grant date for an option or stock award is established when the grantee has a mutual understanding of the key terms and conditions of the option or award, the award is authorized, including all the necessary approvals unless approval is essentially a formality or perfunctory, and the grantee begins to benefit from, or be adversely affected by, underlying changes in the price of the Company’s Class A common shares. An award or option is authorized on the date that all approval requirements are completed (e.g., action by the compensation committee approving the award and the number of options, restricted shares or other equity instruments to be issued to individual employees).

Net Loss per Share of Common Stock

Basic net loss per share of common stock is calculated using the two-class method under which earnings are allocated to both common shares and participating securities. Undistributed net losses are allocated entirely to common shareholders since the participating security has no contractual obligation to share in the losses. Basic net loss per share is calculated by dividing the net loss attributable to common shares by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of stock-based compensation awards and warrants to purchase common stock (using the treasury stock method).

Foreign Currency Remeasurement and Transactions

The functional currency of the Company’s U.K., German, Indian and Austrian subsidiaries is the U.S. Dollar. For these subsidiaries, monetary assets and liabilities denominated in non-U.S. currencies are re-measured to U.S. Dollars using current exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities denominated in non-U.S. currencies are maintained at historical U.S. Dollar exchange rates. Expenses are re-measured at average U.S. Dollar monthly rates.

Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are immaterial for all periods presented.

In April and July 2022, the Company purchased 130.1 million Euros for 140.0 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.076 Euro and 50.0 million Euros for 50.9 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.018 Euro, which are designed to provide an economic hedge against future foreign currency exposures.

Recently Adopted Accounting Pronouncements

In December 2020, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU No. 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. This guidance had no effect on the Company’s condensed consolidated financial statements upon adoption in 2022.

In September 2021, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The ASU also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The ASU amends the diluted earnings per share guidance, including the requirement to use if-converted method for all convertible instruments and an update for instruments that can be settled in either cash or shares. We early adopted ASU 2020-06 effective on January 1, 2021 applying the modified retrospective method. Since the Company does not have any financial instruments as of January 1, 2021 within the scope of ASU 2020-06, early adoption had no effect on the Company’s condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. This ASU also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for non-public companies, and public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission (SEC), for interim and annual periods beginning after December 15, 2022. On December 31, 2021, the Company became a large accelerated filer, as defined by the SEC, and, as a result, adopted this guidance effective January 1, 2021, which did not have a material impact on the Company's consolidated financial statements.

XML

Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

	Fair Value Measured as of September 30, 2022:
	Level 1		Level 2		Level 3		Total
Assets included in:
Money market funds included in cash and cash equivalents	$	664,040	$	—	$	—	$	664,040
Equity investment	$	4,360	$	—	$	—	$	4,360
Total fair value	$	668,400	$	—	$	—	$	668,400

	Fair Value Measured as of December 31, 2021:
	Level 1		Level 2		Level 3		Total
Assets included in:
Money market funds included in cash and cash equivalents	$	1,191,079	$	—	$	—	$	1,191,079
Total fair value	$	1,191,079	$	—	$	—	$	1,191,079

The fair value of the Company’s money market funds is determined using quoted market prices in active markets for identical assets. The carrying amounts included in the Condensed Consolidated Balance Sheets under Current assets approximate fair value because of the short maturity of these instruments.

On July 28, 2021, the Company made a commitment for a private investment in public equity (PIPE) supporting the planned merger of European EV charging network, Allego B.V. (“Allego”) with Spartan Acquisition Corp. III (NYSE: SPAQ), a publicly-listed special purpose acquisition company. Fisker Inc. is the exclusive electric vehicle automaker in the PIPE and, in parallel, agreed to terms to deliver a range of charging options for its customers in Europe. On March 16, 2022, the merger closed and the Company delivered cash of $10 million in exchange for 1,000,000 shares of Allego's Class A common stock (NYSE:ALLG). The Company's ownership percentage is less than 5% and does not result in significant influence. Allego filed with the SEC a registration statement registering the resale of the shares acquired (the “Registration Statement”) that was declared effective by the SEC during the second quarter of 2022. The Company has classified its equity investment in Allego as a current asset. Unrealized losses recognized during the three and nine-months ended September 30, 2022 on equity securities still held as of September 30, 2022 totaled $0.7 million and $5.6 million, respectively as shown separately in the Condensed Consolidated Statement of Operations.

We carry the convertible senior notes at face value less the unamortized debt issuance costs on our consolidated balance sheets and present that fair value for disclosure purposes only. As of September 30, 2022, the fair value of the 2026 Notes was $343.1 million. The estimated fair value of the convertible notes, which are classified as Level 2 financial instruments, was determined based on the estimated or actual bid prices of the convertible notes in an over-the-counter market on the last business day of the period.

For the nine-months ended September 30, 2021, the Company measured its derivative liability for its private and public warrants at fair value on a recurring basis. The private warrants fair value is determined based on significant inputs not observable in the market, which caused it to be classified as a Level 3 measurement within the fair value hierarchy. The Company used an option pricing simulation model for the valuation of the private warrants, which used assumptions the Company believed would be made by a market participant in making the same valuation. all of which were exercised in March 2021. The public warrants fair value is determined using its publicly traded prices (Level 1). All of the public and private warranted were exercised or redeemed in 2021. Changes in the fair value of the derivative liability related to updated assumptions and estimates are recognized within the Condensed Consolidated Statements of Operations as a non-operating expense. For the nine-months ended September 30, 2021, the changes in the fair value of the derivative liability resulted from changes in the fair values of the underlying Class A common shares and its associated volatility upon exercise in March 2021.

XML

Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

The Company has the following intangible assets (in thousands):

	As of September 30, 2022
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Capitalized cost - manufacturing	8 years	$	251,609	$	—	$	251,609
		$	251,609	$	—	$	251,609

	As of December 31, 2021
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Capitalized cost - manufacturing	8 years	$	231,525	$	—	$	231,525
		$	231,525	$	—	$	231,525

The Company did not amortize the capitalized cost associated with the warrants granted to Magna International, Inc. (“Magna”) for the nine-months ended September 30, 2022 as amortization will commence on a straight-line basis with the start of production for the Fisker Ocean which is expected to occur in the fourth quarter of 2022. The Company expects to amortize the intangible asset over eight years but will continually assess the reasonableness of the estimated life. Refer to Note 9 for additional information regarding the capitalization of costs upon issuance of warrants to Magna. Also, the Company capitalized certain costs associated with manufacturing of the Fisker Ocean and production of parts, which will be amortized beginning with the start of production for the Fisker Ocean over eight years.

XML

Property and Equipment, Net

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net, consists of the following (in thousands):

	September 30, 2022		December 31, 2021
Machinery and equipment	$	1,380	$	1,174
Furniture and fixtures	451		307
IT hardware and software	4,693		3,778
Leasehold improvements	90		20
Construction in progress	230,979		81,160
Total property and equipment	237,593		86,439
Less: Accumulated depreciation and amortization	(2,008)		(796)
Property and equipment, net	$	235,585	$	85,643

Construction in progress primarily consists of capitalized tooling costs. As of September 30, 2022, accounts payable and accrued expenses includes acquired property and equipment of $29.3 million compared to $35.4 million as of December 31, 2021, which is excluded from net cash used in investing activities as reported in the condensed consolidated statement of cash flows for the nine-months ended September 30, 2022.

XML

Accrued Expenses

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses

A summary of the components of accrued expenses is as follows (in thousands):

	September 30, 2022		December 31, 2021
Accrued vendor liabilities	$	88,828	$	67,293
Order deposits	4,810		—
Accrued professional fees	2,595		3,579
Accrued payroll	1,681		1,989
Accrued interest	695		6,165
Accrued other	824		608
Total accrued expenses	$	99,433	$	79,634

Accrued expenses include amounts owed to vendors but not yet invoiced in exchange for vendor purchases, research and development services, and order deposits. Certain estimates of accrued vendor expenses are based on costs incurred to date.

Order Deposits

In the third quarter of 2022, the Company began accepting order deposits of $5,000 USD or equivalent currency for Fisker Ocean Ones, a limited-edition trim level of the Fisker Ocean. The Company also converted customer deposits for reservation holders who previously made a deposit for an Extreme, Ultra or Sport Ocean prior to August 16, 2022, the enactment date of the Inflation Reduction Act of 2022 (the "Inflation Reduction Act"). Order deposits will be applied to the sales price of the vehicle and recognized as revenue when the vehicle is sold and delivered to the customer. Order Deposits are not included in customer deposits.

On July 1, 2022, the Company entered into a contract for global payment processing agreement with JPMorgan Chase Bank, N.A. (“Chase”). Order Deposits paid directly to the Company via ACH or other direct payment mechanisms are received in the Company’s bank account and available for its use in the subsequent month after the month in which the Order Deposits were placed. For Order Deposits made through credit card transactions, Chase holds cash received from customers 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. Cash received from Order Deposits and the conversion of any customer deposit results in the recognition of a contract liability. As of September 30, 2022, contract liabilities totaled $4.8 million and were classified as current liabilities, included in “Accrued Expenses” on the consolidated balance sheet.

XML

Customer Deposits

9 Months Ended

Sep. 30, 2022

Deposit Liabilities Disclosure [Abstract]

Customer Deposits

Customer Deposits

Customer deposits consists of the following (in thousands):

	September 30, 2022		December 31, 2021
Customer reservation	$	13,399	$	5,546
Customer SUV option	754		754
Total customer deposits	$	14,153	$	6,300

Customer deposits consist of reservations, which represent cash received for the future right (e.g., a reservation) to order a Fisker Ocean or PEAR, and customer SUV option.

XML

Convertible Senior Notes

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Convertible Senior Notes

Convertible Senior Notes

2026 Notes

In August 2021, we issued an aggregate of $667.5 million principal amount of 2.50% convertible senior notes due in September 2026 (the “2026 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the

Securities Act of 1933, as amended. The 2026 Notes have been designated as green bonds, whose proceeds will be allocated in accordance with the Company’s green bond framework. The 2026 Notes consisted of a $625.0 million initial placement and an over-allotment option that provided the initial purchasers of the 2026 Notes with the option to purchase an additional $100.0 million aggregate principal amount of the 2026 Notes, of which $42.5 million was exercised. The 2026 Notes were issued pursuant to an indenture dated August 17, 2021. The net proceeds from the issuance of the 2026 Notes were $562.2 million net of debt issuance costs and cash used to purchase the capped call transactions (“2026 Capped Call Transactions”) discussed below. The debt issuance costs are amortized to interest expense.

The 2026 Notes are unsecured obligations which bear regular interest at 2.50% annually and will be payable semiannually in arrears on March 15 and September 15 of each year, beginning on March 15, 2022. The 2026 Notes will mature on September 15, 2026, unless repurchased, redeemed, or converted in accordance with their terms prior to such date. The 2026 Notes are convertible into cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election, at an initial conversion rate of 50.7743 shares of Class A common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $19.70 per share of our Class A common stock. The conversion rate is subject to customary adjustments for certain events as described in the indenture governing the 2026 Notes. We may redeem for cash all or any portion of the 2026 Notes, at our option, on or after September 20, 2024 if the last reported sale price of our Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

Holders of the 2026 Notes may convert all or a portion of their 2026 Notes at their option prior to June 15, 2026, in multiples of $1,000 principal amounts, only under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on September 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•during the five-business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the applicable conversion rate of the 2026 Notes on such trading day;

•if we call such 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the notes called (or deemed called) for redemption; or

•on the occurrence of specified corporate events.

On or after June 15, 2026, the 2026 Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Holders of the 2026 Notes who convert the 2026 Notes in connection with a make-whole fundamental change, as defined in the indenture governing the 2026 Notes, or in connection with a redemption may be entitled to an increase in the conversion rate. Additionally, in the event of a fundamental change, holders of the 2026 Notes may require us to repurchase all or a portion of the 2026 Notes at a price equal to 100% of the principal amount of 2026 Notes, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

We accounted for the issuance of the 2026 Notes as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives.

As of September 30, 2022, the 2026 Notes consisted of the following (in thousands):

Principal	$	667,500
Unamortized debt issuance costs	(7,105)
Net carrying amount	$	660,395

Interest expense related to the amortization of debt issuance costs for the three and nine-months ended September 30, 2022 was $0.4 million and $1.0 million, respectively. Contractual interest expense for the three and nine-months ended September 30, 2022 was $4.2 million and $12.4 million, respectively.

As of September 30, 2022, the if-converted value of the 2026 Notes did not exceed the principal amount. The 2026 Notes were not eligible for conversion as of September 30, 2022.No sinking fund is provided for the 2026 Notes, which means that we are not required to redeem or retire them periodically.

Capped Call Transactions

In connection with the offering of the 2026 Notes, we entered into the 2026 Capped Call Transactions with certain counterparties at a net cost of $96.8 million. The 2026 Capped Call Transactions are purchased capped call options on 33.9 million shares Class A common stock, that, if exercised, can be net share settled, net cash settled, or settled in a combination of cash or shares consistent with the settlement elections made with respect to the 2026 Notes if converted. The cap price is initially $32.57 per share of our Class A common stock and subject to certain adjustments under the terms of the 2026 Capped Call Transactions. The strike price is initially $19.70 per share of Class A common stock, subject to customary anti-dilution adjustments that mirror corresponding adjustments for the 2026 Notes.

The 2026 Capped Call Transactions are intended to reduce potential dilution to holders of our Class A common stock upon conversion of the 2026 Notes and/or offset any cash payments we are required to make in excess of the principal amount, as the case may be, with such reduction or offset subject to a cap. The cost of the Capped Call Transactions was recorded as a reduction of our additional paid-in capital in our consolidated balance sheets. The Capped Call Transactions will not be remeasured as long as they continue to meet the conditions for equity classification.

XML

Common Stock and Warrants

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Common Stock and Warrants

Common Stock and Warrants

Public and Private Warrants

On March 19, 2021, the Company announced that it would redeem all of its outstanding warrants (the “Public Warrants”) to purchase shares of the Company’s Class A common stock, par value $0.00001 per share (the “Common Stock”), that were issued under the Warrant Agreement, dated August 9, 2018 (the “Warrant Agreement”), by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent (the “Warrant Agent”), as part of the units sold in the Company’s initial public offering (the “IPO”), for a redemption price of $0.01 per Public Warrant (the “Redemption Price”), that remained outstanding at 5:00 p.m. New York City time on April 22, 2021 (the “Redemption Date”). The Private Placement Warrants were not subject to this redemption. In addition, in accordance with the Warrant Agreement, the Company’s board of directors elected to require that, upon delivery of the notice of redemption, all Public Warrants were to be exercised only on a “cashless basis.” Accordingly, holders could not exercise Public Warrants and receive Common Stock in exchange for payment in cash of the $11.50 per warrant exercise price. Instead, a holder exercising a Public Warrant was deemed to pay the $11.50 per warrant exercise price by the surrender of 0.5046 of a share of Common Stock that such holder would have been entitled to receive upon a cash exercise of a Public Warrant. Accordingly, by virtue of the cashless exercise of the Public Warrants, exercising warrant holders received 0.4954 of a share of Common Stock for each Public Warrant surrendered for exercise. For the unexercised 225,906 Public Warrants outstanding at the Redemption Date, the Company paid $2,259 to redeem the unexercised warrants in the second quarter of 2021. There are no Public Warrants outstanding as of September 30, 2022 and December 31, 2021.

During March 2021, the 9,360,000 warrants to purchase Common Stock that were originally issued under the Warrant Agreement in a private placement simultaneously with the IPO were exercised by the Company’s former sponsor on a cashless basis for 4,907,329 shares of Common Stock (4,452,671 shares of Common Stock surrendered) and are no longer outstanding. During the nine-months ended September 30, 2021, the Company received cash proceeds of $89 million upon the exercise of 7,733,400 Public Warrants immediately prior to the announcement to redeem the Public Warrants. Cashless exercises of public and private warrants increased additional paid-in capital by $277 million for the nine-months ended September 30, 2021.

Magna Warrants

On October 29, 2020, the Company granted Magna up to 19,474,454 warrants, each with an exercise price of $0.01, to acquire underlying shares of Class A common stock of Fisker, which represented approximately 6.0% ownership in Fisker on a fully diluted basis as of the grant date. The right to exercise vested warrants expires on October 29, 2030. The

warrants are accounted for as an award issued to non-employees measured on October 29, 2020 with three interrelated performance conditions that are separately evaluated for achievement.

Milestone	Percentage of Warrants that Vest Upon Achievement		Number of Warrants that Vest Upon Achievement
(a) (i) Achievement of the “preliminary production specification” gateway as set forth in the Development Agreement; (ii) entering into the Platform Agreement; and (iii) entering into the Initial Manufacturing Agreement	33.3	%	6,484,993
(b) (i) Achievement of the “target agreement” gateway as set forth in the Development Agreement and (ii) entering into the Detailed Manufacturing Agreement, which will contain terms and conditions agreed to in the Initial Manufacturing Agreement	33.3	%	6,484,993
(c) Start of pre-serial production	33.4	%	6,504,468
			19,474,454

The cost upon achievement of each milestone is recognized when it is probable that a milestone will be met. The cost for awards to nonemployees is recognized in the same period and in the same manner as if the Company had paid cash for the goods or services. At September 30, 2022, Magna satisfied the first and second milestones and the Company capitalized costs as an intangible asset representing the future economic benefit to Fisker Inc. As of September 30, 2022, the Company determined the third milestone is probable of achievement and capitalized a portion of the award's fair value corresponding to the service period beginning at the grant date and ending in the fourth quarter of 2022. The unrecognized portion of the award will be recognized ratably over the remainder of the service period ending upon start of pre-serial production, which is estimated to occur on November 17, 2022. Changes in the estimated timing of start of pre-serial production will require a cumulative adjustment for a change in accounting estimate. For the nine-months ended September 30, 2022, the recognized cost of $20.1 million (a non-cash transaction) associated with services rendered, resulted in increased capitalized cost - manufacturing to $251.6 million as of September 30, 2022. Because there are multiple milestones to achieve, the intangible asset is under development and will be complete when start of pre-serial production begins. The Company will amortize the aggregate capitalized cost in a systematic and rational manner. Throughout its useful life, including the period of time before completion, the Company will assess the intangible asset for impairment. If an indicator of impairment exists, the undiscounted cash flows will be estimated and then if the carrying amount of the intangible asset is not recoverable, determine its fair value and record an impairment loss. At September 30, 2022, no indicators of impairment exists.

The fair value of each warrant is equal to the intrinsic value (e.g., stock price on grant date less exercise price) as the exercise price is $0.01. The terms of the warrant agreement require net settlement when exercised. Using the measurement date stock price of $8.96 for a share of Class A common stock, the warrant fair values for each tranche is shown below. Capitalized cost also results in an increase to additional paid in capital equal to the fair value of the vested warrants. Awards vest when a milestone if met. Magna has 12,969,986 vested and exercisable warrants to acquire underlying Class A common stock of Fisker as of September 30, 2022, none of which are exercised.

	Fair value		Capitalized at September 30, 2022
Milestone (a)	$	58,041	$	58,041
Milestone (b)	58,041		58,041
Milestone (c)	58,215		51,520
	$	174,297	$	167,602

At-the-market Equity Program

In May, 2022, we entered into an at-the-market distribution agreement, dated May 24, 2022 with J.P. Morgan Securities LLC and Cowen and Company, LLC as the sales agents (the "Distribution Agreement"), pursuant to which the Company established an at-the-market equity program (the “ATM Program”). Pursuant to the ATM Program, Fisker may, at its discretion and from time to time during the term of the Distribution Agreement, sell, through the Agents, shares of its Class A Common Stock as would result in aggregate gross proceeds to the Company of up to $350 million by any method permitted by law deemed to be an “at-the-market offering” as defined in Rule 415 of the Securities Act of 1933, as amended, including without limitation sales made directly on the New York Stock Exchange, on any other existing trading market for the Class A Common Stock or to or through a market maker. In addition, the sales agents may also sell the shares of Class A Common Stock by any other method permitted by law, including, but not limited to, negotiated transactions. The Class A Common Stock sold under the ATM Program is registered with the SEC under the Company's effective shelf registration statement that permits the Company to issue various securities for proceeds of up to $2.0 billion. The Company issued 14,491,359 shares of Class A common stock during the nine-months ended September 30, 2022 for gross proceeds of $132.5 million, before $2.6 million of commissions and other direct incremental issuance costs, and, as of September 30, 2022, $217.5 million of Class A Common Stock is available for sale under the ATM Program. As of September 30, 2022, the Company may issue securities in the future for up to $1.65 billion under its shelf-registration statement, subject to customary underwriting and due diligence procedures.

XML

Loss Per Share

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Loss Per Share

Loss Per Share

The Company computes earnings (loss) per share of Class A Common Stock and Class B Common Stock using the two-class method required for participating securities. Basic and diluted earnings per share was the same for each period presented as the inclusion of all potential Class A Common Stock and Class B Common Stock outstanding would have been anti-dilutive. Basic and diluted earnings per share are the same for each class of common stock because they are entitled to the same liquidation and dividend rights. The following table sets forth the computation of basic and diluted loss per Class A Common Stock and Class B Common Stock:

	Three-months Ended September 30,
	2022		2021
Numerator:
Net loss	$	(149,342)	$	(109,844)
Denominator:
Weighted average Class A common shares outstanding	170,870,467		163,779,402
Weighted average Class B common shares outstanding	132,354,128		132,354,128
Weighted average Class A and Class B common shares outstanding- Basic and Diluted	303,224,595		296,133,530
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(0.49)	$	(0.37)

	Nine Months Ended September 30,
	2022		2021
Numerator:
Net loss	$	(377,392)	$	(332,909)
Denominator:
Weighted average Class A common shares outstanding	167,107,937		158,091,137
Weighted average Class B common shares outstanding	132,354,128		132,354,128
Weighted average Class A and Class B common shares outstanding- Basic and Diluted	299,462,065		290,445,265
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(1.26)	$	(1.15)

The following table presents the potential common shares outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive:

	As of September 30,
	2022	2021
Convertible senior notes	33,891,845	33,891,845
Stock options and warrants	30,555,194	31,185,282
Total	64,447,039	65,077,127

XML

Stock Based Compensation

9 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Stock Based Compensation

Stock Based Compensation

The 2020 Equity Incentive Plan (the “Plan”) is a stock-based compensation plan which provides for the grants of options and restricted stock to employees and consultants of the Company. Options granted under the Plan may be either incentive options (“ISO”) or nonqualified stock options (“NSO”). Also, the Company established a 2020 Employee Stock Purchase Plan (the “ESPP”) under which Class A Common Stock may be issued. As of September 30, 2022, no shares have been issued under the ESPP.

Stock-based compensation expense is as follows (in thousands):

	Three-months Ended September 30,
	2022		2021
General and administrative expense	$	3,908	$	209
Research and development	7,258		834
Total	$	11,166	$	1,043

	Nine Months Ended September 30, 2022
	2022		2021
General and administrative expense	$	6,099	$	816
Research and development	11,327		3,262
Total	17,426		4,078

Stock options

Options under the Plan may be granted at prices as determined by the Board of Directors, provided, however, that (i) the exercise price of an ISO and NSO shall not be less than 100% of the estimated fair value of the shares on the date of grant, and (ii) the exercise price of an ISO granted to a 10% shareholder shall not be less than 110% of the estimated fair value of the shares on the date of grant. The fair value of the shares is determined by the Board of Directors on the date of grants. Stock options generally have a contractual life of 10 years. Upon exercise, the Company issues new shares.

In 2016 and 2017, the Company’s founders were granted an aggregate of 15,882,711 options which are fully vested and are not related to performance. Options granted to other employees and consultants become vested and are exercisable over a range of up to six years from the date of grant.

The following table summarizes option activity under the Plan:

	Options	Weighted Average Exercise Price	Weighted Average Contractual Term (in Years)
Balance as of December 31, 2021	17,695,560	1.44	5.6
Granted	346,700	11.26
Exercised	(186,491)	2.39
Forfeited	(270,561)	12.03
Balance as of September 30, 2022	17,585,208	1.48	4.6

The fair value of each stock option grant under the Plan was estimated on the date of grant using the Black-Scholes option pricing model, with the following range of assumptions:

	Nine Months Ended September 30, 2022
Expected term (in years)	6.3
Volatility	78.2% to 79.4%
Dividend yield	0.0%
Risk-free interest rate	2.94% to 3.37%
Common stock price	$8.75 to $9.59

The Black-Scholes option pricing model requires various highly subjective assumptions that represent management’s best estimates of the fair value of the Company’s common stock, volatility, risk-free interest rates, expected term, and dividend yield. As the Company’s shares have actively traded for a short period of time subsequent to the Business Combination, volatility is based on a benchmark of comparable companies within the automotive and energy storage industries.

The expected term represents the weighted-average period that options granted are expected to be outstanding giving consideration to vesting schedules. Since the Company does not have an extended history of actual exercises, the Company has estimated the expected term using a simplified method which calculates the expected term as the average of the time-to-vesting and the contractual life of the awards. The Company has never declared or paid cash dividends and does not plan to pay cash dividends in the foreseeable future; therefore, the Company used an expected dividend yield of zero. The risk-free interest rate is based on U.S. Treasury rates in effect during the expected term of the grant. The expected volatility is based on historical volatility of publicly-traded peer companies.

Restricted stock awards

During the nine-months ended September 30, 2022, the Company granted employees, who rendered services during the year ended December 31, 2021 and were employees of the Company on the grant date, a restricted stock unit (“RSU”) award based in proportion to the service period beginning from the employee’s hire date to the end of the year. The restricted stock unit awards vested on the grant date which resulted in stock-based compensation expense of $4.5 million recognized in the nine-months ended September 30, 2022. The Company’s founders declined to receive an award related to performance in 2021. In accordance with the Company’s Outside Director Compensation Policy, each outside Board of Directors member will receive an annual RSU equal to $200,000 granted on the date of the Company’s annual shareholders’ meeting which vests in 25% increments at the end of each calendar quarter. Each Outside Director may elect to convert all or a portion of his or her annual Board of Directors retainer, excluding any annual retainer that an Outside Director may receive for serving as Lead Director and any annual retainers for committee service, into RSUs in lieu of the applicable cash retainer payment (“RSU Election”).

The number of Class A common shares granted to Outside Directors annually are based on the 30-day average closing trading price of Class A common stock on the day preceding the grant date (“RSU Value”). When an Outside Director exercises his or her RSU Election, the number of Class A common shares equal the amount of cash subject to such RSU Election divided by the applicable RSU Value and are fully vested.

The following table summarizes RSU activity under the Plan:

	RSU Awards	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2021	17,174	$	13.47
Awarded	425,816	10.79
Vested	(428,240)	11.27
Forfeited	(1,016)	11.46
Unvested as of September 30, 2022	13,734	$	12.92

Performance-based restricted stock awards

In the third quarter of 2021, the Company’s compensation committee ratified and approved performance-based restricted stock units (“PRSUs”) to all employees (“Grantee”) the value of which is determined based on the Grantee’s level within the Company (“PRSU Value”). Each PRSU is equal to one underlying share of Class A common stock. Also, PRSUs will be awarded to any new employee hired during 2022 and 2023 on a pro-rata basis based on a reduction in time of service. The number of shares subject to a Grantee’s PRSU award equals the Grantee’s PRSU Value divided by the closing price per Class A common share on the service inception date, or if the service inception date is not a trading day, the closing price per Share on the closest trading day immediately prior to the service inception date; in each case rounded down to the nearest whole number. Each PRSU award shall vest as to 50% of the PRSU Value upon the Committee’s determination, in its sole discretion, and certification of the occurrence of the Ocean Start of Production and shall vest as to 50% of the PRSUs upon the first anniversary of the Ocean Start of Production, in each case, subject to (i) the Grantee’s continuous service through the applicable vesting date, (ii) the Grantee’s not committing any action or omission that would constitute Cause for termination through the applicable vesting date, as determined in the sole discretion of the Company, and (iii) the Ocean Start of Production occurring on or before December 31, 2022. The compensation committee has discretion to reduce or eliminate the number of PRSUs that shall vest pursuant to each PRSU award upon the certification of the occurrence of the Ocean Start of Production and/or upon the first anniversary of the Ocean Start of Production, after considering, any factors that it deems relevant, which could include but are not limited to (i) Company performance against key performance indicators, and (ii) departmental performance against goals. The service inception date precedes the grant dates for both performance conditions. The grant date for each of the performance conditions is the date Grantees have a mutual understanding of the key terms and conditions of the PRSU, which will occur when each performance condition is achieved, and the compensation committee has determined whether it will exercise its discretion to adjust the PRSU award. As of September 30, 2022, the Company has approved and authorized PRSUs equal to 2,939,708 shares of Class A Common Stock with an aggregate PRSU value of $22.2 million. Recognition of stock-based compensation occurs when performance conditions are probable of achievement. Measurement of stock-based compensation attributed to the PRSU awards will be based on the fair value of the underlying Class A Common Stock once the grant date is determined (e.g., variable accounting). As of September 30, 2022, the Company determined that 50% of the PRSU Value is probable of achievement resulting in compensation expense of $9.6 million in the third quarter of 2022. Measurement of PRSU compensation expense is based on the closing price on the last day of the quarter ended September 30, 2022 multiplied by the outstanding approved and authorized PRSUs. The grant date of the PRSUs has not been determined and thus the PRSUs remain subject to variable accounting treatment.

XML

Related Party Transactions	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions On March 8, 2021, the Company appointed Mitchell Zuklie to its Board of Directors . Mr. Zuklie is the chairman of the law firm of Orrick, Herrington & Sutcliff LLP (‘‘Orrick’’), which provides various legal services to the Company. During the three-months ended September 30, 2022 and 2021, the Company incurred expenses for legal services rendered by Orrick totaling approximately $4.6 million and $0.7 million, respectively, and $7.7 million and $1.1 million for the nine-months ended September 30, 2022 and 2021, respectively.

XML

Commitments and Contingencies	9 Months Ended
	Sep. 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. During the nine months ended September 30, 2022, the Company entered into two lease agreements pertaining to an industrial facility located in Shanghai, China and commercial space dedicated to powertrain development and prototyping and vehicle tear-down, service technician training and minor service research in California, which commenced in the third quarter of 2022 resulting in initial recognition of lease liabilities and corresponding right of use assets totaling $12.5 million (a non-cash transaction). In addition, the Company entered into two lease agreements for Center+ properties located in Vienna, Austria and Copenhagen, Denmark to be used for test drives, service and deliveries of our vehicles to customers. The Vienna and Copenhagen leases have not commenced as of September 30, 2022 due to contractual terms that grant Fisker access to the premises in the fourth quarter of 2022 at which time Fisker may modify the properties to accommodate its operations. When the date of lease commencement is determined, the Company will determine the incremental borrowing rate and measure and recognize the lease liability and right of use asset.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the SEC.

Unaudited Interim Financial Statements

Unaudited Interim Financial Statements

The condensed consolidated balance sheet as of September 30, 2022, the condensed consolidated statements of operations and the condensed consolidated statements of changes in stockholders’ equity for the three-months and nine-months ended September 30, 2022 and 2021, and the condensed consolidated statements of cash flows for the nine-months ended September 30, 2022 and 2021, as well as other information disclosed in the accompanying notes, are unaudited. The consolidated balance sheet as of December 31, 2021 was derived from the audited consolidated financial statements as of that date. The interim condensed consolidated financial statements and the accompanying notes should be read in conjunction with the annual consolidated financial statements and the accompanying notes contained in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 28, 2022.

Comprehensive loss is not separately presented as the amounts are equal to net loss for the three and nine-months ended September 30, 2022 and 2021.

The interim condensed consolidated financial statements and the accompanying notes have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for a fair statement of the results of operations for the periods presented. The condensed consolidated financial statements for any interim period are not necessarily indicative of the results to be expected for the full year or for any other future years or interim periods.

Supplier Risk

Supplier Risk

The Company nominated suppliers during the year for engineering, development, testing, tooling and production of components for serial production of its vehicles. As of September 30, 2022, these supplier contracts do not represent unconditional purchase obligations with take-or-pay or specified minimum quantities provisions with the exception of an agreement securing battery capacity for the Fisker Ocean SUV. Under the terms of the agreement, the battery supplier will deliver two different battery solutions for the Fisker Ocean SUV, with an initial battery capacity of over 5 gigawatt-hours annually, from 2023 through 2025.

Use of Estimates

Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP required management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the condensed consolidated financial statements and accompanying notes. The Company bases these estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.

Fair Value Measurements

Fair Value Measurements

The Company follows the accounting guidance in ASC 820 Fair Value Measurement ("ASC 820"), for its fair value measurements of financial assets and liabilities measured at fair value on a recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

The accounting guidance requires fair value measurements be classified and disclosed in one of the following three categories:

Level 1: Quoted prices in active markets for identical assets or liabilities.

Level 2: Observable inputs other than Level 1 prices, for similar assets or liabilities that are directly or indirectly observable in the marketplace.

Level 3: Unobservable inputs which are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Income Taxes

Income Taxes

Income taxes are recorded in accordance with ASC 740, Income Taxes (“ASC 740”), which provides for deferred taxes using an asset and liability approach. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements or tax returns. Deferred tax assets and liabilities are determined based on the difference between the consolidated financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are provided, if based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

There are transactions that occur during the ordinary course of business for which the ultimate tax determination is uncertain. As of September 30, 2022, there were no material changes to either the nature or the amounts of the uncertain tax positions previously determined for the year ended December 31, 2021.

The Company’s income tax provision consists of an estimate for U.S. federal, foreign and state income taxes based on enacted rates, as adjusted for allowable credits, deductions, uncertain tax positions, changes in deferred tax assets and liabilities, and changes in the tax law. The Company maintains a valuation allowance against the full value of its U.S. and state net deferred tax assets because the Company believes the recoverability of the tax assets is not more likely than not as of September 30, 2022.

Derivative Liability

Derivative Liability The Company accounts for its public and private warrants as a derivative liability initially measured at their fair values and remeasured in the condensed consolidated statements of operations at the end of each reporting period. When the warrants are exercised, the corresponding derivative liability is de-recognized at the underlying fair value of the Class A common stock that is issued to the warrant holder less any cash paid in accordance with the warrant agreement. Upon either cash or cashless exercise, the de-recognized derivative liability results in an increase in additional paid in capital equal to the difference between the fair value of the underlying Class A common stock and its par value. A cashless exercise results in the warrant holder surrendering Class A common stock equal to the stated warrant exercise price based on the contractual terms in the warrant agreement that govern the cashless conversion.

Equity Awards

Equity Awards The grant date for an option or stock award is established when the grantee has a mutual understanding of the key terms and conditions of the option or award, the award is authorized, including all the necessary approvals unless approval is essentially a formality or perfunctory, and the grantee begins to benefit from, or be adversely affected by, underlying changes in the price of the Company’s Class A common shares. An award or option is authorized on the date that all approval requirements are completed (e.g., action by the compensation committee approving the award and the number of options, restricted shares or other equity instruments to be issued to individual employees).

Net Loss per Share of Common Stock

Net Loss per Share of Common Stock Basic net loss per share of common stock is calculated using the two-class method under which earnings are allocated to both common shares and participating securities. Undistributed net losses are allocated entirely to common shareholders since the participating security has no contractual obligation to share in the losses. Basic net loss per share is calculated by dividing the net loss attributable to common shares by the weighted-average number of shares of common stock outstanding for the period. The diluted net loss per share of common stock is computed by dividing the net loss using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of stock-based compensation awards and warrants to purchase common stock (using the treasury stock method).

Foreign Currency Remeasurement and Transactions

Foreign Currency Remeasurement and Transactions

The functional currency of the Company’s U.K., German, Indian and Austrian subsidiaries is the U.S. Dollar. For these subsidiaries, monetary assets and liabilities denominated in non-U.S. currencies are re-measured to U.S. Dollars using current exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities denominated in non-U.S. currencies are maintained at historical U.S. Dollar exchange rates. Expenses are re-measured at average U.S. Dollar monthly rates.

Foreign currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other than the functional currency. Transaction gains and losses are immaterial for all periods presented.

In April and July 2022, the Company purchased 130.1 million Euros for 140.0 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.076 Euro and 50.0 million Euros for 50.9 million U.S. dollars, a currency exchange rate of 1 U.S. dollar for 1.018 Euro, which are designed to provide an economic hedge against future foreign currency exposures.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In December 2020, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU No. 2019-12 removes certain exceptions to the general principles in ASC 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. This guidance had no effect on the Company’s condensed consolidated financial statements upon adoption in 2022.

In September 2021, the FASB issued ASU 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The ASU also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. The ASU amends the diluted earnings per share guidance, including the requirement to use if-converted method for all convertible instruments and an update for instruments that can be settled in either cash or shares. We early adopted ASU 2020-06 effective on January 1, 2021 applying the modified retrospective method. Since the Company does not have any financial instruments as of January 1, 2021 within the scope of ASU 2020-06, early adoption had no effect on the Company’s condensed consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. This ASU also provides updated guidance regarding the impairment of available-for-sale debt securities and includes additional disclosure requirements. The new guidance is effective for non-public companies, and public business entities that meet the definition of a Smaller Reporting Company as defined by the Securities and Exchange Commission (SEC), for interim and annual periods beginning after December 15, 2022. On December 31, 2021, the Company became a large accelerated filer, as defined by the SEC, and, as a result, adopted this guidance effective January 1, 2021, which did not have a material impact on the Company's consolidated financial statements.

XML

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

	Fair Value Measured as of September 30, 2022:
	Level 1		Level 2		Level 3		Total
Assets included in:
Money market funds included in cash and cash equivalents	$	664,040	$	—	$	—	$	664,040
Equity investment	$	4,360	$	—	$	—	$	4,360
Total fair value	$	668,400	$	—	$	—	$	668,400

	Fair Value Measured as of December 31, 2021:
	Level 1		Level 2		Level 3		Total
Assets included in:
Money market funds included in cash and cash equivalents	$	1,191,079	$	—	$	—	$	1,191,079
Total fair value	$	1,191,079	$	—	$	—	$	1,191,079

XML

Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

The Company has the following intangible assets (in thousands):

	As of September 30, 2022
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Capitalized cost - manufacturing	8 years	$	251,609	$	—	$	251,609
		$	251,609	$	—	$	251,609

	As of December 31, 2021
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Capitalized cost - manufacturing	8 years	$	231,525	$	—	$	231,525
		$	231,525	$	—	$	231,525

XML

Property and Equipment, Net (Tables)

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment, Net

Property and equipment, net, consists of the following (in thousands):

	September 30, 2022		December 31, 2021
Machinery and equipment	$	1,380	$	1,174
Furniture and fixtures	451		307
IT hardware and software	4,693		3,778
Leasehold improvements	90		20
Construction in progress	230,979		81,160
Total property and equipment	237,593		86,439
Less: Accumulated depreciation and amortization	(2,008)		(796)
Property and equipment, net	$	235,585	$	85,643

XML

Accrued Expenses (Tables)

9 Months Ended

Sep. 30, 2022

Payables and Accruals [Abstract]

Summary Of Components Of Accrued Expenses

A summary of the components of accrued expenses is as follows (in thousands):

	September 30, 2022		December 31, 2021
Accrued vendor liabilities	$	88,828	$	67,293
Order deposits	4,810		—
Accrued professional fees	2,595		3,579
Accrued payroll	1,681		1,989
Accrued interest	695		6,165
Accrued other	824		608
Total accrued expenses	$	99,433	$	79,634

XML

Customer Deposits (Tables)

9 Months Ended

Sep. 30, 2022

Deposit Liabilities Disclosure [Abstract]

Summary of Customer Deposits

Customer deposits consists of the following (in thousands):

	September 30, 2022		December 31, 2021
Customer reservation	$	13,399	$	5,546
Customer SUV option	754		754
Total customer deposits	$	14,153	$	6,300

XML

Convertible Senior Notes (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Summary of 2026 Notes

As of September 30, 2022, the 2026 Notes consisted of the following (in thousands):

Principal	$	667,500
Unamortized debt issuance costs	(7,105)
Net carrying amount	$	660,395

XML

Common Stock and Warrants (Tables)

9 Months Ended

Sep. 30, 2022

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity Note Warrants or Rights Fair Value of Vested Warrants

The

warrants are accounted for as an award issued to non-employees measured on October 29, 2020 with three interrelated performance conditions that are separately evaluated for achievement.

Milestone	Percentage of Warrants that Vest Upon Achievement		Number of Warrants that Vest Upon Achievement
(a) (i) Achievement of the “preliminary production specification” gateway as set forth in the Development Agreement; (ii) entering into the Platform Agreement; and (iii) entering into the Initial Manufacturing Agreement	33.3	%	6,484,993
(b) (i) Achievement of the “target agreement” gateway as set forth in the Development Agreement and (ii) entering into the Detailed Manufacturing Agreement, which will contain terms and conditions agreed to in the Initial Manufacturing Agreement	33.3	%	6,484,993
(c) Start of pre-serial production	33.4	%	6,504,468
			19,474,454

	Fair value		Capitalized at September 30, 2022
Milestone (a)	$	58,041	$	58,041
Milestone (b)	58,041		58,041
Milestone (c)	58,215		51,520
	$	174,297	$	167,602

XML

Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Summary of Computation of Basic and Diluted Loss

The following table sets forth the computation of basic and diluted loss per Class A Common Stock and Class B Common Stock:

	Three-months Ended September 30,
	2022		2021
Numerator:
Net loss	$	(149,342)	$	(109,844)
Denominator:
Weighted average Class A common shares outstanding	170,870,467		163,779,402
Weighted average Class B common shares outstanding	132,354,128		132,354,128
Weighted average Class A and Class B common shares outstanding- Basic and Diluted	303,224,595		296,133,530
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(0.49)	$	(0.37)

	Nine Months Ended September 30,
	2022		2021
Numerator:
Net loss	$	(377,392)	$	(332,909)
Denominator:
Weighted average Class A common shares outstanding	167,107,937		158,091,137
Weighted average Class B common shares outstanding	132,354,128		132,354,128
Weighted average Class A and Class B common shares outstanding- Basic and Diluted	299,462,065		290,445,265
Net loss per share attributable to Class A and Class B Common shareholders- Basic and Diluted	$	(1.26)	$	(1.15)

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table presents the potential common shares outstanding that were excluded from the computation of diluted net loss per share of common stock as of the periods presented because including them would have been antidilutive:

	As of September 30,
	2022	2021
Convertible senior notes	33,891,845	33,891,845
Stock options and warrants	30,555,194	31,185,282
Total	64,447,039	65,077,127

XML

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Summary of Stock-based Compensation Expense

Stock-based compensation expense is as follows (in thousands):

	Three-months Ended September 30,
	2022		2021
General and administrative expense	$	3,908	$	209
Research and development	7,258		834
Total	$	11,166	$	1,043

	Nine Months Ended September 30, 2022
	2022		2021
General and administrative expense	$	6,099	$	816
Research and development	11,327		3,262
Total	17,426		4,078

Summary of Stock Option Activity

The following table summarizes option activity under the Plan:

	Options	Weighted Average Exercise Price	Weighted Average Contractual Term (in Years)
Balance as of December 31, 2021	17,695,560	1.44	5.6
Granted	346,700	11.26
Exercised	(186,491)	2.39
Forfeited	(270,561)	12.03
Balance as of September 30, 2022	17,585,208	1.48	4.6

Summary of Share-based Payment Award, Stock Options, Valuation Assumptions

The fair value of each stock option grant under the Plan was estimated on the date of grant using the Black-Scholes option pricing model, with the following range of assumptions:

	Nine Months Ended September 30, 2022
Expected term (in years)	6.3
Volatility	78.2% to 79.4%
Dividend yield	0.0%
Risk-free interest rate	2.94% to 3.37%
Common stock price	$8.75 to $9.59

Schedule of RSU Activity

The following table summarizes RSU activity under the Plan:

	RSU Awards	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2021	17,174	$	13.47
Awarded	425,816	10.79
Vested	(428,240)	11.27
Forfeited	(1,016)	11.46
Unvested as of September 30, 2022	13,734	$	12.92

XML

Summary of Significant Accounting Policies (Details) $ in Thousands, € in Millions, shares in Millions	1 Months Ended				9 Months Ended
	Jul. 31, 2022 USD ($)	Jul. 31, 2022 EUR (€)	Apr. 30, 2022 USD ($)	Apr. 30, 2022 EUR (€)	Sep. 30, 2022 USD ($) GWh battery_solution shares	Jul. 31, 2022 EUR (€)	Apr. 30, 2022 EUR (€)	Dec. 31, 2021 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash and cash equivalents					$ 824,696			$ 1,202,439
Accumulated losses					$ 996,637			$ 619,245
Number of battery solutions | battery_solution					2
Battery capacity in gigawatt-hours | GWh					5
Purchase of foreign currency	$ 140,000	€ 130.1	$ 140,000	€ 130.1
Foreign currency exchange rate, translation	1.018		1.076			1.018	1.076
Translation adjustment functional to reporting currency	$ 50,900		$ 50,900			€ 50.0	€ 50.0
Common Class A | ATM Program
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sale of stock, shares available for sale under program | shares					217.5

XML

Fair Value Measurements - Schedule of Fair Value Measurement of Financial Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	$ 668,400	$ 1,191,079
Equity investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	4,360
Money market funds included in cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	664,040	1,191,079
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	668,400	1,191,079
Level 1 | Equity investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	4,360
Level 1 | Money market funds included in cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	664,040	1,191,079
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	0	0
Level 2 | Equity investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	0
Level 2 | Money market funds included in cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	0	0
Level 3 | Equity investment
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	0
Level 3 | Money market funds included in cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value	$ 0	$ 0

XML

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Mar. 16, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Payments for equity method investment				$ 10,000	$ 0
Unrealized loss recognized on equity securities		$ 730	$ 0	5,640	$ 0
Level 2 | Convertible senior notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long term debt fair value		$ 343,100		$ 343,100
Allego B.V. (“Allego”) | Common Class A | Fisker Group
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Sale of stock, number of shares issued in transaction	1,000,000
Allego B.V. (“Allego”)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Payments for equity method investment	$ 10,000
Ownership percentage	5.00%

XML

Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Amortization Period	8 years
Gross Carrying Amount	$ 251,609	$ 231,525
Accumulated Amortization	0	0
Net	$ 251,609	$ 231,525
Capitalized cost - manufacturing
Finite-Lived Intangible Assets [Line Items]
Amortization Period	8 years	8 years
Gross Carrying Amount	$ 251,609	$ 231,525
Accumulated Amortization	0	0
Net	$ 251,609	$ 231,525

XML

Intangible Assets - Additional Information (Details)	9 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0
Amortization period	8 years

XML

Property and Equipment, Net - Summary of Property And Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 237,593	$ 86,439
Less: Accumulated depreciation and amortization	(2,008)	(796)
Property and equipment, net	235,585	85,643
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment	1,380	1,174
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment	451	307
IT hardware and software
Property, Plant and Equipment [Line Items]
Total property and equipment	4,693	3,778
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment	90	20
Construction in progress
Property, Plant and Equipment [Line Items]
Total property and equipment	$ 230,979	$ 81,160

XML

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Accrued property and equipment	$ 29.3	$ 35.4

XML

Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Accrued Expenses [Line Items]
Total accrued expenses	$ 99,433	$ 79,634
Prepayment amount for fisker ocean ones	5
Contract with customer, liability, current	4,800
Accrued vendor liabilities
Accrued Expenses [Line Items]
Total accrued expenses	88,828	67,293
Order deposits
Accrued Expenses [Line Items]
Total accrued expenses	4,810	0
Accrued professional fees
Accrued Expenses [Line Items]
Total accrued expenses	2,595	3,579
Accrued payroll
Accrued Expenses [Line Items]
Total accrued expenses	1,681	1,989
Accrued interest
Accrued Expenses [Line Items]
Total accrued expenses	695	6,165
Accrued other
Accrued Expenses [Line Items]
Total accrued expenses	$ 824	$ 608

XML

Customer Deposits - Summary of Customer Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deposit Liabilities Disclosure [Line Items]
Total customer deposits	$ 14,153	$ 6,300
Customer reservation
Deposit Liabilities Disclosure [Line Items]
Total customer deposits	13,399	5,546
Customer SUV option
Deposit Liabilities Disclosure [Line Items]
Total customer deposits	$ 754	$ 754

XML

Convertible Senior Notes - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Disclosure [Line Items]
Interest expense related to the amortization of debt issuance costs		$ 4,693,000	$ 2,147,000	$ 13,827,000	$ 2,147,000
2026 Notes Capped Call Transaction
Debt Disclosure [Line Items]
Payments for capped call option	$ 96,800,000
Option indexed to class A common stock (in shares)	33,900,000
Initial cap price per share (in dollars per share)	$ 32.57
Strike price (in dollars per share)	$ 19.70
2026 Notes
Debt Disclosure [Line Items]
Issuance of notes	$ 667,500,000
Debt instrument interest rate	2.50%
Initial placement amount	$ 625,000,000
Debt instrument option to purchase additional notes principal amount	100,000,000.0
Exercised amount	42,500,000
Proceeds from issuance of notes	$ 562,200,000
Debt instrument initial conversion price (in dollars per share)	$ 19.70
Debt instrument redemption price equal to percentage of the principal amount of the notes	100.00%
Number of consecutive trading days	30 days
Number of business days used to determine conversion price of notes	5 days
Number of consecutive trading days in measurement period	10 days
Threshold percentage of the principal amount of notes including accrued and unpaid interest required to repurchase of notes in the event of fundamental change	100.00%
Interest expense related to the amortization of debt issuance costs		400,000		1,000,000.0
Contractual interest expense		4,200,000		12,400,000
Sinking fund amount		$ 0		$ 0
Debt instrument sinking fund description				No sinking fund is provided for the 2026 Notes, which means that we are not required to redeem or retire them periodically.
2026 Notes | Minimum
Debt Disclosure [Line Items]
Number of trading days used to determine the conversion price	20 days
Number of trading days based on last reported sale price of common stock	20 days
Threshold percentage of product of the reported sale price of common stock and the applicable conversion rate of the notes on trading day for conversion of notes	98.00%
2026 Notes | Common Class A
Debt Disclosure [Line Items]
Debt conversion converted instrument (in shares)	0.0507743
Minimum percentage of conversion price required to redeem notes based on last reported sale price of common stock	130.00%

XML

Convertible Senior Notes - Summary of 2026 Notes (Details) - 2026 Notes $ in Thousands	Sep. 30, 2022 USD ($)
Loans notes trade and other payables disclosure [Line Items]
Principal	$ 667,500
Unamortized debt issuance costs	(7,105)
Net carrying amount	$ 660,395

XML

Common Stock and Warrants - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended		3 Months Ended		9 Months Ended
	Oct. 29, 2020 milestone $ / shares shares	May 31, 2022 USD ($)	Mar. 31, 2021 shares	Sep. 30, 2022 USD ($) $ / shares shares	Jun. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) shares	Dec. 31, 2021 USD ($) $ / shares shares	Mar. 19, 2021 $ / shares shares
Class of Stock [Line Items]
Common stock surrendered (in shares)			4,452,671
Recognition of Magna warrants | $				$ 6,695		$ 20,084	$ 58,040
Number of interrelated performance conditions | milestone	3
Intangible assets | $				$ 251,609		251,609		$ 231,525
Proceeds from stock issuance under "At-the-market" offering | $						$ 132,538	0
Common Stock
Class of Stock [Line Items]
Class of warrant or exercise price of warrants or rights (in dollars per share) | $ / shares									$ 11.50
Common stock price surrendered for exercise of warrants (in dollars per share) | $ / shares									0.5046
Conversion of warrants (in shares)			4,907,329
Proceeds from issuance of warrants | $							$ 89,000
Warrants exercised (in shares)							7,733,400
Public Warrants
Class of Stock [Line Items]
Warrant redemption price (in dollars per share) | $ / shares									0.01
Class of warrant or exercise price of warrants or rights (in dollars per share) | $ / shares									$ 11.50
Warrants outstanding (in shares)				0		0		0
Redemption of unexercised warrants | $					$ 2,259
Public Warrants | Redemption Date
Class of Stock [Line Items]
Warrants outstanding (in shares)									225,906
Public Warrants | Common Stock
Class of Stock [Line Items]
Cashless exercise price of warrants (in dollars per share) | $ / shares									$ 0.4954
Private Placement Warrants | Spartan Energy Acquisition Corp
Class of Stock [Line Items]
Number of warrants exercised (in shares)			9,360,000
Private Placement
Class of Stock [Line Items]
Recognition of Magna warrants | $							$ 277,000
Magna Warrants
Class of Stock [Line Items]
Class of warrant or exercise price of warrants or rights (in dollars per share) | $ / shares	$ 0.01
Class of warrant or right number of warrants granted (in shares)	19,474,454
Proportion of equity ownership interest in subsidiary	6.00%
Exercise vested warrants expire date	Oct. 29, 2030
Shares issued for vested and exercise of warrants (in shares)						12,969,986
Exercise of warrants (in shares)						0
ATM Program
Class of Stock [Line Items]
Proceeds from stock issuance under "At-the-market" offering | $		$ 350,000
Sale of Stock, amount of securities issuable under program | $				$ 1,650,000		$ 1,650,000
Class A Common Stock
Class of Stock [Line Items]
Common stock par value (in dollars per share) | $ / shares				$ 0.00001		$ 0.00001		$ 0.00001	$ 0.00001
Class A Common Stock | Common Stock
Class of Stock [Line Items]
Exercise of warrants (in shares)							27,751,587
Class A Common Stock | Magna Warrants | Measurement Input, Share Price
Class of Stock [Line Items]
Common stock, measurement date stock price (in dollars per share) | $ / shares				$ 8.96		$ 8.96
Class A Common Stock | ATM Program
Class of Stock [Line Items]
Proceeds from stock issuance under "At-the-market" offering | $		$ 2,000,000
Sale of stock, number of shares issued in transaction						14,491,359
Sale of stock, consideration received on transaction | $						$ 132,500
Payments for commissions and other direct incremental issuance costs | $						$ 2,600
Sale of stock, shares available for sale under program				217,500,000		217,500,000
Warrant | Magna Warrants
Class of Stock [Line Items]
Exercise price (in dollars per share) | $ / shares				$ 0.01		$ 0.01

XML

Common Stock and Warrants - Schedule of Warrants Accounted as Awards to Non Employees Measured on Performance Conditions that are Evaluated for Achievement (Details)	Oct. 29, 2020 shares
Schedule Of Warrants Accounted As Awards To Non Employees Measured On Performance Conditions That Are Evaluated For Achievement [Line Items]
Number of Warrants that Vest Upon Achievement (in shares)	19,474,454
(a) (i) Achievement of the “preliminary production specification” gateway as set forth in the Development Agreement; (ii) entering into the Platform Agreement; and (iii) entering into the Initial Manufacturing Agreement
Schedule Of Warrants Accounted As Awards To Non Employees Measured On Performance Conditions That Are Evaluated For Achievement [Line Items]
Percentage of Warrants that Vest Upon Achievement	33.30%
Number of Warrants that Vest Upon Achievement (in shares)	6,484,993
(b) (i) Achievement of the “target agreement” gateway as set forth in the Development Agreement and (ii) entering into the Detailed Manufacturing Agreement, which will contain terms and conditions agreed to in the Initial Manufacturing Agreement
Schedule Of Warrants Accounted As Awards To Non Employees Measured On Performance Conditions That Are Evaluated For Achievement [Line Items]
Percentage of Warrants that Vest Upon Achievement	33.30%
Number of Warrants that Vest Upon Achievement (in shares)	6,484,993
(c) Start of pre-serial production
Schedule Of Warrants Accounted As Awards To Non Employees Measured On Performance Conditions That Are Evaluated For Achievement [Line Items]
Percentage of Warrants that Vest Upon Achievement	33.40%
Number of Warrants that Vest Upon Achievement (in shares)	6,504,468

XML

Common Stock and Warrants - Schedule of Stockholders Equity Note Warrants or Rights Fair Value of Vested Warrants (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Statement [Line Items]
Fair value	$ 174,297
Capitalized at September 30, 2022	167,602
Milestone (a)
Statement [Line Items]
Fair value	58,041
Capitalized at September 30, 2022	58,041
Milestone (b)
Statement [Line Items]
Fair value	58,041
Capitalized at September 30, 2022	58,041
Milestone (c)
Statement [Line Items]
Fair value	58,215
Capitalized at September 30, 2022	$ 51,520

XML

Loss Per Share - Summary of Computation of Basic and Diluted Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net loss	$ (149,342)	$ (109,844)	$ (377,392)	$ (332,909)
Denominator:
Weighted average Class A and Class B Common shares outstanding- Basic (in shares)	303,224,595	296,133,530	299,462,065	290,445,265
Weighted average Class A and Class B Common shares outstanding- Diluted (in shares)	303,224,595	296,133,530	299,462,065	290,445,265
Net loss per share attributable to Class A and Class B Common shareholders- Basic (in dollars per share)	$ (0.49)	$ (0.37)	$ (1.26)	$ (1.15)
Class A Common Stock
Denominator:
Weighted average Class A and Class B Common shares outstanding- Basic (in shares)	170,870,467	163,779,402	167,107,937	158,091,137
Class B Common Stock
Denominator:
Weighted average Class A and Class B Common shares outstanding- Basic (in shares)	132,354,128	132,354,128	132,354,128	132,354,128

XML

Loss Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	64,447,039	65,077,127
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	33,891,845	33,891,845
Stock options and warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	30,555,194	31,185,282

XML

Stock Based Compensation - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2017	Dec. 31, 2016
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of shares issued under the plan (in shares)			0
Minimum estimated fair value percentage of exercise priced on the date of grant			100.00%
Minimum percentage of shareholders			10.00%
Minimum estimated percentage of fair value of shares			110.00%
Granted (in shares)			346,700
Contractual life of awards			4 years 7 months 6 days		5 years 7 months 6 days
Dividend yield			0.00%
Stock-based compensation			$ 17,426	$ 4,078
Class A Common Stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation			4,500
Stock issued during period, value, restricted stock award, gross			$ 200,000
Defined contribution plan, employers matching contribution, annual vesting percentage			25.00%
Employee Stock Purchase Plan
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Granted (in shares)						15,882,711	15,882,711
Contractual life of awards						6 years	6 years
Share-based Payment Arrangement, Option
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Expiration period			10 years
Restricted Stock Units (RSUs) | Class A Common Stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Number of common shares granted to outside directors annually are based on the period average closing trading price of common stock on the day preceding the grant date			30 days
Performance-Based Restricted Stock Awards
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock issued during period, value, restricted stock award, gross	$ 9,600
Award vesting percentage	50.00%
Performance-Based Restricted Stock Awards | Share-based Payment Arrangement, Tranche One
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award vesting percentage		50.00%
Performance-Based Restricted Stock Awards | Share-based Payment Arrangement, Tranche Two
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Award vesting percentage		50.00%
Performance-Based Restricted Stock Awards | Class A Common Stock
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock issued during period, value, restricted stock award, gross			$ 22,200
Number of awards convertible into each underlying share (in shares)		1		1
Number of shares authorized under the plan (in shares)	2,939,708		2,939,708

XML

Stock Based Compensation - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 11,166	$ 1,043	$ 17,426	$ 4,078
General and administrative expense
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,908	209	6,099	816
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 7,258	$ 834	$ 11,327	$ 3,262

XML

Stock Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Options
Beginning balance (in shares)	17,695,560
Granted (in shares)	346,700
Exercised (in shares)	(186,491)
Forfeited (in shares)	(270,561)
Ending balance (in shares)	17,585,208	17,695,560
Weighted Average Exercise Price
Beginning balance (in dollars per share)	$ 1.44
Granted (in dollars per share)	11.26
Exercised (in dollars per share)	2.39
Forfeited (in dollars per share)	12.03
Ending balance (in dollars per share)	$ 1.48	$ 1.44
Weighted Average Contractual Term (in Years)	4 years 7 months 6 days	5 years 7 months 6 days

XML

Stock Based Compensation - Summary of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)	9 Months Ended
	Sep. 30, 2022 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 3 months 18 days
Volatility, minimum	78.20%
Volatility, maximum	79.40%
Dividend yield	0.00%
Risk-free interest rate, minimum	2.94%
Risk-free interest rate, maximum	3.37%
Common Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock price	$ 8.75
Common Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock price	$ 9.59

XML

Stock Based Compensation - RSU Activity (Details) - RSUs	9 Months Ended
	Sep. 30, 2022 $ / shares shares
RSU Awards
Unvested beginning balance (in shares) | shares	17,174
Awarded (in shares) | shares	425,816
Vested (in shares) | shares	(428,240)
Forfeited (in shares) | shares	(1,016)
Unvested ending balance (in shares) | shares	13,734
Weighted Average Grant Date Fair Value
Unvested beginning balance (in dollars per share) | $ / shares	$ 13.47
Awarded (in dollars per share) | $ / shares	10.79
Vested (in dollars per share) | $ / shares	11.27
Forfeited (in dollars per share) | $ / shares	11.46
Unvested ending balance (in dollars per share) | $ / shares	$ 12.92

XML

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Orrick
Related Party Transaction [Line Items]
Expense incurred for legal services	$ 4.6	$ 0.7	$ 7.7	$ 1.1

XML

Commitments and Contingencies - Additional Information (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) lease_agreement	Dec. 31, 2021 USD ($)
Other Commitments [Line Items]
Right-of-use assets, net	$ 27,804	$ 18,285
Shanghai, China
Other Commitments [Line Items]
Number of lease agreements | lease_agreement	2
Right-of-use assets, net	$ 12,500
Lease, liability	$ 12,500
Vienna, Austria and Copenhagen, Denmark
Other Commitments [Line Items]
Number of lease agreements | lease_agreement	2