Revenue Recognition

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

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

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Product revenue	$	249	$	5,771	$	8,924	$	9,065
Service revenue	—		124		$	160	$	128
Total revenues	$	249	$	5,895	$	9,084	$	9,193

For the three months ended June 30, 2023, the Company had one customer that accounted for 100.0% of the total revenue and for the six months ended June 30, 2023, we had one customer that accounted for 97.8% of the total revenue, respectively.

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

Lessor revenue

The Company leases battery energy storage systems to one customer through a sales-type lease with a 20-year term. For the three and six months ended June 30, 2022, the Company recognized revenue of $128 and $1,166 from the sales-type lease, respectively. No revenue was recognized from the sales-type lease for the three and six months ended June 30, 2023.

Contract assets and Contract liabilities

The following table provides information about contract assets and contract liabilities from contracts with customers. Contract assets, current and contract liabilities, current and long-term are included separately on the unaudited condensed consolidated balance sheets and contract assets, long-term are included under other assets, net.

	June 30, 2023		December 31, 2022
Contract assets	$	2,106	$	2,000
Contract liabilities	$	3,335	$	4,806

The Company recognizes contract assets for certain contracts in which revenue recognition performance obligations have been satisfied but invoicing to the customer has not yet occurred. Contract liabilities primarily relate to 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 increased by $106 during the six months ended June 30, 2023 due to recognition of revenues for which invoicing has not yet occurred. Contract liabilities decreased by $1,471 during the six months ended June 30, 2023, reflecting $3,450 of revenue recognized from customers, partially offset by $1,979 in customer advance payments during the six months ended June 30, 2023 that was included in the contract liability balance at the beginning of the period.

Contract liabilities of $2,379 as of June 30, 2023 are expected to be recognized within the next twelve months and long-term contract liabilities of $956 are expected to be recognized as revenue over approximately the next one to two years. Contract assets of $2,036 as of June 30, 2023 are expected to be recognized within the next twelve months. Long-term contract assets of $70 are expected to be recognized as accounts receivable over approximately the next two years.