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BALANCE SHEET COMPONENTS
 12 Months Ended
Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BALANCE SHEET COMPONENTS BALANCE SHEET COMPONENTS
Inventory
Inventory consisted of the following at December 31, 2022 and 2021, respectively:
As of December 31,
20222021
Raw materials$57,342 $7,344 
Work-in-process15,948 4,253 
Finished goods47,802 — 
Service parts2,105 — 
Total inventory$123,197 $11,597 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following at December 31, 2022 and 2021, respectively:
As of December 31,
20222021
Prepaid expenses$7,975 $5,116 
Non-trade receivables6,064 2,717 
Insurance receivable acquired in Romeo Acquisition6,000 — 
Headquarters sale agreement receivable5,487 — 
Deferred implementation costs2,101 2,443 
Prepaid insurance premiums6,663 — 
Deposits3,534 5,615 
Total prepaid expenses and other current assets$37,824 $15,891 
Deferred implementation costs
The capitalized costs are amortized on a straight-line basis over the estimated useful life of the related software. During the second quarter of 2022, the Company re-assessed the estimated useful life of its existing enterprise resource planning system as a result of a new system implementation, resulting in a shorter useful life and prospective change in amortization.
The Company recorded $2.8 million of amortization expense on the consolidated statements of operations for the year ended December 31, 2022, related to deferred implementation costs. Amortization expense during the years ended December 31, 2021 and 2020 were immaterial.
Non-trade receivables
For the year ended December 31, 2022 and 2021, the Company recognized government grant income totaling $1.2 million and $2.4 million, respectively, in connection with the Arizona Qualified Facility Tax Credit (“QFTC”). As GAAP does not contain authoritative accounting standards on this topic, the Company accounted for the QFTC by analogy to International Accounting Standards 20 (“IAS 20”), Accounting for Government Grants and Disclosure of Government Assistance. Under IAS 20, the grant is recognized on a systematic basis over the periods in which the qualifying expenses are incurred when it is determined that receipt of the grant is no longer contingent. As of December 31, 2022 and 2021, the Company recognized $1.2 million and $1.2 million in prepaid expenses and other current assets, respectively, and zero and $1.2 million in other assets, respectively, on the consolidated balance sheets. The Company must continue to maintain compliance of the QFTC within the meaning of A.R.S. § 41-1512(X)(5) and, in respect to at least 51% of the then Qualified Eligible Person ("QEP"), to continue to pay at least the applicable threshold wage, to qualify for the tax credits for a maximum of $6.1 million, in five equal installments of $1.2 million.
Property, Plant and Equipment, Net
Property, plant and equipment, net consisted of the following at December 31, 2022 and 2021, respectively:
As of December 31,
20222021
Construction-in-progress$220,244 $103,515 
Buildings127,797 100,391 
Equipment38,659 24,875 
Land24,762 3,957 
Tooling18,276 11,676 
Demo vehicles15,215 888 
Software9,321 7,562 
Finance lease assets5,201 646 
Leasehold improvements3,880 2,883 
Other3,456 3,011 
Furniture and fixtures1,600 1,480 
Property, plant and equipment, gross468,411 260,884 
Less: accumulated depreciation and amortization(31,405)(16,507)
Total property, plant and equipment, net$437,006 $244,377 
Depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $14.9 million, $8.2 million and $6.0 million, respectively.
Construction-in-progress on the Company's consolidated balance sheets as of December 31, 2022 relates primarily to the continued expansion of the Company's manufacturing plant in Coolidge, Arizona, development of hydrogen infrastructure, and build-out of the Company's headquarters and R&D facility in Phoenix, Arizona.
For the year ended December 31, 2020, the Company expensed $2.0 million of construction-in-progress and machinery and equipment, net of accumulated depreciation, to impairment expense on the consolidated statements of operations. These assets were related to the Powersports business unit whose operations ceased in the fourth quarter of 2020. The Company had no impairment expense for the years ended December 31, 2022 and 2021.
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following at December 31, 2022 and 2021, respectively:
As of December 31,
20222021
Settlement liability$90,000 $50,000 
Accrued purchase of intangible asset32,126 11,344 
Inventory received not yet invoiced29,117 8,253 
Accrued payroll and payroll related expenses17,389 2,521 
Supply agreement revision commitment10,000 — 
Accrued outsourced engineering services8,056 1,134 
Other accrued expenses7,562 7,565 
Accrued purchases of property, plant and equipment4,590 2,817 
Accrued legal expenses2,041 5,664 
Accrued Equity Distribution Agreement Fees1,681 — 
Derivative liability— 4,189 
Total accrued expenses and other current liabilities$202,562 $93,487