Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue RecognitionThe Company primarily earns revenue from sales of its energy storage systems and services including installation, commissioning, and extended warranty services. Product revenues, which are recognized at a point in time, and service revenues, which are recognized over time, are as follows:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021
Product revenue	$	5,771	$	599	$	9,065	$	763
Service revenue	124		13		128		13
Total	$	5,895	$	612	$	9,193	$	776

For contracts for which revenue is recognized over time, the Company performs reviews of the progress and execution of its performance obligations under these contracts periodically. As part of this process, management reviews information including, but not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities and the related changes in estimates of revenues and costs. Based upon these reviews, if at any time management determines that in the case of a particular contract total costs will exceed total contract revenue, a provision for the entire anticipated contract loss is recorded at that time. The Company recognized losses from contracts of $1,249 for the three and six months ended June 30, 2022, respectively. No loss was recognized for the three and six months ended June 30, 2021.

For the three months ended June 30, 2022, we had one customer who accounted for 89.6% of the total revenue and for the six months ended June 30, 2022, we had two customers who accounted for 73.1% and 12.7% of the total revenue, respectively.

For the three months ended June 30, 2021, we had one customer who accounted for 100% of the total revenue and for the six months ended June 30, 2021, we had two customers who accounted for 78.8% and 21.2% of the total revenue, respectively.

Contract assets and Contract liabilities

The following table provides information about contract assets and contract liabilities from contracts with customers. Contract assets are included in other current assets and contract liabilities are included separately on the condensed consolidated balance sheets.

	June 30, 2022		December 31, 2021
Contract assets	$	938	$	1,369
Contract liabilities	$	1,755	$	849

The Company recognizes contract assets for certain contracts in which revenue recognition performance obligations have been satisfied, however, invoicing to the customer has not yet occurred. Contract liabilities primarily relate to advance consideration received from customers in advance of the Company’s satisfying performance obligations under contractual arrangements. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

Contract assets decreased by $431 during the six months ended June 30, 2022 due to reclassifications to accounts receivable from billings on existing contracts. Contract liabilities increased by $906 during the six months ended June 30, 2022, reflecting $1,159 in customer billings, which were not recognized as revenue during the period, offset by the recognition of $253 of revenue during the six months ended June 30, 2022 that was included in the contract liability balance at the beginning of the period.

Contract liabilities of $879 as of June 30, 2022 are expected to be recognized within the next twelve months. $876 of long-term contract liabilities are expected to be recognized as revenue over approximately the next two years.