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Related Party Notes Payable (Tables)
 12 Months Ended
Dec. 31, 2021
Related Party Transactions [Abstract]  
Schedule of Debt
Related party notes payable consists of the following as of December 31, 2021:
December 31, 2021
Note NameContractual
Maturity Date		Contractual
Interest Rates		Unpaid BalanceNet Carrying
Value at 12/31/21
Related party notes - China(1)
Due on Demand18.00%$9,411 $9,411 
Related party notes - China various other(2)
Due on Demand0.00%4,244 4,244 
Total related party notes payable$13,655 $13,655 
Related party notes payable consists of the following as of December 31, 2020:
December 31, 2020
Note NameContractual
Maturity Date		Contractual
Interest
Rates		Unpaid
Balance		Fair Value
Measurement
Adjustments
0%
Coupon
Discount
Loss (Gain) on
Extinguishments		Net Carrying
Value at 12/31/2020
Related party note (3)
June 30, 202112.00%$240,543 $— $(861)$204 $239,886 
Related party note (4)
Due on Demand
15.00%
10,000 — — — 10,000 
Related party notes – NPA tranche (5)
October 6, 202110.00%27,593 5,356 — — 32,949 
Related party notes – China (1)
Due on Demand
18.00%
9,196 — — — 9,196 
Related party notes – China various other (2)(6)
Due on Demand
0% coupon, 10.00% imputed
6,548 — (190)(22)6,336 
Related party notes – China various other (6)
Due on Demand8.99%1,410 — — (3)1,407 
Related party notes – Other (7)
Due on Demand0.00%424 — — — 424 
Related party notes – Other (8)
June 30, 20216.99%4,160 — — (50)4,110 
Related party notes – Other (9)
June 30, 20218.00%6,452 — — (35)6,417 
Related party notes - Other (10)
June 30, 2021
1.52%, 8.99%,
8.00%, 2.86%
8,440 — — (137)8,303 
Related party notes – Other (11)
Due on Demand,
June 30, 2021
8.99%, 6.99%
1,760 — — (11)1,749 
Related party notes – Other (12)
June 30, 20218.00%11,635 — — (57)11,578 
Total related party notes payable$328,161 $5,356 $(1,051)$(111)$332,355 
(1)In April 2017, the Company executed two separate note payable agreements with Chongqing Leshi Small Loan Co., Ltd. (“Chongqing”), for total principal of $8,742. Chongqing was previously controlled by the Company’s founder and former CEO and is a small banking institution. The notes payable matured on April 16, 2018, have no covenants, and are unsecured. The notes bore interest during the note term at 12.00% per annum. As the notes are in default as of December 31, 2021 and 2020, the outstanding balance is subject to an 18.00% compounding interest rate per annum.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$9,411 $9,196 
Accrued interest11,231 7,646 
Interest expense3,369 2,641 
Foreign exchange (gain) loss on principal810 595 
Foreign exchange (gain) loss on accrued interest679 463 
(2)The Company issued the following notes with various related parties in China.
In 2018, the Company entered into a $700 note payable with an employee. The note was payable on demand and bears interest at 0% per year. The note had no covenants and was unsecured. The note payable was in default as of December 31, 2020.
Due to the note payable having an interest rate below market rates, the Company imputed interest upon entering into the note payable resulting in a debt discount and a capital contribution due to the related party nature of the arrangement. During the years ended December 31, 2021 and 2020, the Company recognized interest expense of $16 and $34, respectively, related to the accretion of the debt discount. As of December 31, 2020, the unamortized debt discount was $16. The Company reclassified the $730 carrying value of this loan from related party notes payable to notes payable during the year ended December 31, 2021 when the employee left the employment of the Company.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $737 
Interest expense16 34 
Foreign exchange (gain) loss on principal30 48 
Reclassification to notes payable730 — 
The Company has various other unsecured related party borrowings totaling $4,244 at December 31, 2021. These borrowings do not have stated terms or a stated maturity date.
Due to the notes payable having below market interest rates, the Company imputed interest upon entering into the notes payable resulting in a debt discount and a capital contribution due to the related party nature of the arrangements. During the years ended December 31, 2021 and 2020, the Company recognized interest expense of $141 and $310, respectively, related to the accretion of the debt discount. The unamortized debt discount was immaterial for the years ended December 31, 2021 and 2020. The Company made principal payments of $900 during the year ended December 31, 2021.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$4,244 $5,045 
Interest expense141 310 
Foreign exchange (gain) loss on principal99 326 
Principal payments in cash900 — 
The Company settled select related party notes payable during the year ended December 31, 2021 through the conversion of related party notes payable and accrued interest into Class A Common Stock just prior to the Business Combination and with a combination of cash payments and commitment to issue Class A Common Stock in settlement of outstanding principal plus accrued interest and conversion premiums pursuant to the Closing of the Business Combination, as follows:
December 31, 2021
Note NameContractual
Maturity Date		Contractual
Interest
Rates		Net Carrying Value at 12/31/2020Amortization of Discounts & Fair Value
Adjustments		Accrued Interest at SettlementBorrowingCash Payments of Principal and InterestEquity Settlements of Principal and InterestNet Carrying Value at 12/31/2021
Loss (Gain) at Settlement
Settlement prior to the Business Combination:
Related party note(3)
June 30, 202112.00%$220,690 $657 $73,448 $— $— $(294,795)$— $— 
Settlement in the Business Combination:
Related party note(3)
June 30, 202112.00%19,196 — — — — (19,196)7,256 
Related party note(4)
Due on Demand15.00%10,000 — 3,708 — (13,708)— — — 
Related party notes – NPA tranche(5)
October 9, 202110.00%32,949 163 5,728 — (27,593)(11,247)— 4,257 
Related party notes – China various other(6)
Due on Demand
0% coupon, 10.00% imputed
774 — — — — (774)— 292 
Related party notes – China other(6)
Due on Demand8.99%1,407 3 44 — — (1,454)— 550 
Related party notes – Other(7)
Due on Demand0.00%424 — — 200 (624)— — — 
Related party notes – Other(8)
June 30, 20216.99%4,110 50 — — — (4,160)— 1,572 
Related party notes – Other(9)
June 30, 20218.00%6,417 35 1,195 — — (7,647)— 2,891 
Related party notes – Other(10)
June 30, 2021
1.52%,8.99%, 8.00%, 2.86%
8,303 137 819 — — (9,259)— 3,500 
Related party notes – Other(11)
Due on Demand,
June 30, 2021
8.99%, 6.99%
1,749 11 378 — — (2,138)— 808 
Related party notes – Other(12)
June 30, 20218.00%11,578 57 1,693 — — (13,328)— 5,038 
Subtotal settlements in the Business Combination96,907 456 13,565 200 (41,925)(69,203)— 26,164 
Total$317,597 $1,113 $87,013 $200 $(41,925)$(363,998)$— $26,164 
Closing of the Business Combination
As described in Note 3, Business Combination, in conjunction with the Closing of the Business Combination, the Company paid $41,925 in cash and a commitment to issue 6,921,814 shares of Class A Common Stock to settle related party notes payable principal amounts of $91,420, net carrying amounts of $96,907 and accrued interest of $13,565. Where the Company converted related party notes payable into Class A Common Stock, the Company recorded a loss at settlement of the related party notes payable of $26,164 in the Consolidated Statements of Operations and Comprehensive Loss for the year ended December 31, 2021 due to converting the related party notes payable at $10.00 per share which was below the fair value of the stock on the date of conversion.
(3)During 2016, Faraday & Future (HK) Limited (“F&F HK”) and Leview Mobile (HK) Ltd. (“Leview”) provided the Company with cash contributions for a total of $278,866. F&F HK was previously controlled by the Company’s founder and former CEO and Leview is controlled by the Company’s founder and former CEO. On March 30, 2018, the cash funding was restructured via an agreement in the form of notes payable bearing an annual interest rate of 12.00% and maturing on December 31, 2020. The notes payable are unsecured and there are no covenants associated with these notes payable.
Faraday & Future (HK) Limited
F&F HK provided an aggregate principal loan in the total sum of $212,007 to the Company as part of the agreement on March 30, 2018. On June 27, 2019, the Company entered into a note payable cancellation agreement for a portion of the note payable with F&F HK effective January 1, 2019 and simultaneously the note payable was assumed by a third-party lender. The agreement cancelled
$48,374 of principle and $5,805 of unpaid interest due to F&F HK. There was no loss or gain on the extinguishment of note payable due to the net carrying amount of the note payable extinguished being equivalent to the reacquisition price of the new note payable.
Leview Mobile (HK) Ltd
Leview provided an aggregate principal loan in the total sum of $66,859 to the Company as part of the agreement on March 30, 2018.
Beijing Bairui Culture Media, Co. Ltd
Between December 2017 and July 2018, the Company executed several notes payable agreements with Beijing Bairui Culture Media Co., Ltd. (“Bairui”) for total principal of $27,329. Bairui was previously controlled by the Company’s founder and former CEO. Each note payable originally matured one year after its issuance. The notes payable originally bore interest of 0% per annum. The notes payable were unsecured and there were no covenants associated with these notes payable. During the year ended December 31, 2019, Bairui forgave $2,487 of the outstanding notes payable.
Due to the notes payable having below market interest rates, the Company imputed interest upon entering into the notes payable resulting in a notes payable discount and a capital contribution due to the related party nature of the arrangements.
On January 1, 2020, the Company executed an amendment to consolidate the notes payable into one note for the same amount, extend the maturity date of this note payable to December 31, 2020, and increase the interest rate from 0% to 12%. Since the cash flows of the modified note payable exceeded the cash flows of the original notes payable by more than 10%, the modification was accounted for as an extinguishment with a loss on extinguishment of $314 recorded in (Loss) Gain at Settlement of Related Party Notes Payable, Notes Payable, and Vendor Payables in Trust, Net in the Consolidated Statements of Operations and Comprehensive Loss during the year ended December 31, 2020. The net carrying value of the original note payable of $20,842 was replaced with a note payable with a fair value of $21,156. Additionally, accretion of $657 and $2,586 was recorded in Interest Expense during the years ended December 31, 2021 and 2020, respectively, related to the unamortized discount.
CYM Tech Holdings LLC
On August 28, 2020, the related party notes payable with F&F HK, Leview, and Bairui were restructured to consolidate the lenders and extend the maturity date through June 30, 2021, transferring both the principal and accrued interest to the new lender, CYM Tech Holdings LLC, wholly-owned subsidiary of members of management.
The related party notes payable that were restructured were the following:
Before Restructuring
LenderPrincipal
Faraday & Future (HK) Limited$149,081 
Leview Mobile (HK) Ltd66,859 
Beijing Bairui Culture Media, Co. Ltd24,603 
Total$240,543 
After Restructuring
LenderPrincipal
CYM Tech Holdings LLC$240,543 
The restructuring was accounted for as a troubled debt restructuring because the Company was experiencing financial difficulty and the conversion mechanism results in the effective borrowing rate decreasing after the restructuring which was determined to be a concession. Since the future undiscounted cash flows of the restructured note payable exceed the net carrying value of the original notes payable due to the maturity date extension, the restructuring is accounted for prospectively with no gain or loss recorded in the Consolidated Statements of Operations and Comprehensive Loss. The Company concluded that the conversion features do not require bifurcation based on the derivative accounting scope exception in ASC 815 for certain contracts involving an entity’s own equity.
On April 9, 2021, the Company executed agreements with CYM Tech Holdings LLC to convert their notes with principal amounts of $194,810 and accrued interest of $71,764 into the commitment to issue Class A Common Stock. Under the agreements, the notes ceased to accrue interest on March 31, 2021. On May 13, 2021, principal amounts of $90,869 and accrued interest of $43,490 were converted into shares of Legacy FF convertible preferred stock and on July 21, 2021, were converted into Class A Common Stock upon the closing of the Business Combination.
Prior to Closing of the Business Combination, the Company converted principal amounts of $130,479 and accrued interest of $29,958 into Class A Common Stock.
In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the remaining principal of $19,196.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $240,543 
Accrued interest— 64,827 
Interest expense8,801 10,134 
Principal settled with equity240,543 — 
Interest settled with equity73,448 — 
(4)In 2019, the Company borrowed $10,000 from Evergrande Health Industry Group Limited (“China Evergrande”). China Evergrande is an affiliate of a significant shareholder of the Company. The note payable matured on June 30, 2019. The note payable bore interest at an annual rate of 10.00% if repaid through June 30, 2019 and increased to 15.00% per annum thereafter. The note payable was unsecured and there were no covenants associated with this note payable.
In conjunction with the Closing of the Business Combination, the Company paid cash to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $10,000 
Accrued interest— 2,839 
Interest expense869 1,611 
Principal payments in cash10,000 — 
Interest payments in cash3,708 — 
(5)The Company issued 10% interest notes with various related parties through the Note Purchase Agreements (“NPA”).
On April 29, 2019, the Company executed the NPA with U.S. Bank National Association, as the notes agent, and Birch Lake Fund Management, LP as the collateral agent. The aggregate principal amount that may be issued under the NPA was $200,000.
All obligations due under the NPA bore interest of 10% per annum and are collateralized by a first lien, with second payment priority, on virtually all tangible and intangible assets of the Company.
On October 9, 2020, the Company entered into the Second Amended Restated NPA (“Second A&R NPA”) with Birch Lake and the lenders which extended the maturity dates of all NPA notes to the earliest of (i) October 6, 2021, (ii) the consummation of a Qualified Special Purpose Acquisition Company Merger (“Qualified SPAC Merger”), (iii) the occurrence of a change in control, or (iv) the acceleration of the NPA obligations pursuant to an event of default, as defined in the NPA, as amended.
In May 2019, the Company executed a joinder agreement to the NPA with an employee for a convertible note payable with total principal of $1,650. The note payable matured on May 31, 2020 and the interest rate, collateral, and covenants are the same as the NPA. Upon both a preferred stock offering and prepayment notice by the holder or the maturity date of the notes payable, the holder of the note payable may elect to convert all of the outstanding principal and accrued interest of the note payable plus a 20.00% premium into shares of preferred stock of the Company issued in a preferred stock offering. The Company elected the fair value option for this note payable. See Note 8, Fair Value of Financial Instruments. The fair value of the note payable was $1,970 as of December 31, 2020.
In July 2019, the Company executed a joinder agreement to the NPA with a company owned by an employee for a convertible note payable with total principal of $16,462. The note payable originally matured on May 31, 2020 and the interest rate, collateral, and covenants are the same as the NPA. Upon both a preferred stock offering and prepayment notice by the holder or the maturity date of the note payable, the holder of the note payable may elect to convert all of the outstanding principal and accrued interest of the note payable plus a 20.00% premium into shares of preferred stock of the Company issued in a preferred stock offering. The Company elected the fair value option for this note payable. See Note 8, Fair Value of Financial Instruments. The fair value of the note payable was $19,657 as of December 31, 2020.
In conjunction with the Closing of the Business Combination, the Company paid cash and issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $18,112 
Accrued interest— 2,635 
Interest expense1,064 1,840 
Principal and conversion premium settled with equity3,622 — 
Interest settled with equity3,638 — 
Principal payments in cash18,112 — 
Interest payments in cash62 62 
In April 2019, the Company executed a joinder agreement to the NPA with a U.S. based investment firm for a convertible note payable with total principal of $8,581. The convertible note payable originally matured on May 31, 2020. The interest rate, collateral, and covenants were the same as the NPA. Upon both a preferred stock offering and prepayment notice by the holder or the maturity date of the notes payable, the holder of the note payable may elect to convert all of the outstanding principal and accrued interest of the note payable plus a 20% premium. The Company elected the fair value option for these notes payable. The note payable is collateralized by virtually all tangible and intangible assets of the Company.
In conjunction with the Closing of the Business Combination, the Company paid cash and issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $8,581 
Accrued interest— 1,418 
Interest expense496 861 
Principal conversion premium settled with equity1,716 — 
Interest payments settled with equity1,914 — 
Principal payments in cash8,581 — 
In May 2019, the Company borrowed $900 through a note payable from a U.S. based investment firm under the NPA. The note payable originally matured on March 6, 2020 and bore interest of 10% per annum. In conjunction with the Closing of the Business Combination, the Company paid cash and issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $900 
Accrued interest— 143 
Interest expense50 90 
Principal conversion premium settled with equity180 — 
Interest payments settled with equity193 — 
Principal payments in cash900 — 
(6)The Company issued the following notes with various related parties in China.
In April 2017, the Company entered into a $728 note payable with an employee. The note originally matured on October 2, 2017 and bore interest at 0% per year. The note had no covenants and was unsecured.
Due to the note payable having an interest rate below market rates, the Company imputed interest upon executing the note payable resulting in a note payable discount and a capital contribution due to the related party nature of the arrangement.
On September 25, 2020, the notes payable was modified to extend the maturity to June 30, 2021 and add a conversion feature to allow conversion of the note payable into a variable number of SPAC shares if a Qualified SPAC Merger occurs. Since the conversion feature is substantive as it is reasonably possible to be exercised, this modification was accounted for as an extinguishment. The conversion feature does not require bifurcation because it is clearly and closely related to the debt host since the conversion does not involve a substantial premium or discount. The modification agreement and the accounting conclusions are collectively referred to as
the September 2020 Modification. The Company recorded an immaterial gain on extinguishment and immaterial accretion of discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $766 
Accrued interest— — 
Interest expense55 72 
Principal settled with equity774 — 
Foreign exchange (gain) loss on principal46 49 
In February 2020, the Company borrowed $1,410 through a note payable from an employee. The note originally matured on August 14, 2020, bore interest at 8.99% per annum, had no covenants and was unsecured.
As a result of the September 2020 Modification, the Company recorded an immaterial gain on extinguishment and immaterial accretion of that discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $1,410 
Accrued interest— 69 
Interest expense41 111 
Principal settled with equity1,410 — 
Interest settled with equity44 — 
Interest payments in cash63 42 
Proceeds— 1,410 
(7)In December 2020, the Company entered into two notes payable for a total of $424. The notes payable did not have a stated maturity or bear interest. The notes had no covenants and were unsecured. In March 2021, the Company received a $200 bridge loan. The two notes payable totaling $424 and the $200 bridge loan were repaid in cash during the year ended December 31, 2021.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $424 
Principal payments in cash624 — 
Proceeds200 424 
(8)In November 2019 and December 2019, the Company executed three notes payable with an affiliated company for total principal of $4,160. The notes payable originally matured on December 31, 2020 and bore interest at 6.99%.
As a result of the September 2020 Modification, the Company recorded an immaterial gain on extinguishment and immaterial accretion of the discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $4,160 
Accrued interest— 313 
Interest expense211 293 
Principal settled with equity4,160 — 
Interest settled with equity474 — 
(9)Between January 2020 and August 2020, the Company executed nine notes payable with an affiliated company for a total of $8,422. The notes payable matured on December 31, 2020 and bear interest at 8%, besides one note for $500 which matured on June 30, 2020 and bore interest at 8%. The notes had no covenants and were unsecured.
As a result of the September 2020 Modification, the Company recorded an immaterial gain on extinguishment and immaterial accretion of discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $6,452 
Accrued interest— 435 
Interest expense321 435 
Principal settled with equity6,452 — 
Interest settled with equity721 — 
Principal payments in cash— 1,969 
Proceeds— 8,422 
(10)The Company issued the following notes with a related party.
In July 2017, the Company borrowed $22,400 through a note payable from an entity formerly controlled by the Company’s founder and former CEO. The note originally matured on December 31, 2019, bore interest at 1.52% per annum, had no covenants, and was unsecured. During 2017 and 2018, there were a total of $18,000 of principal payments. In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $4,400 
Accrued interest— 314 
Interest expense37 84 
Principal settled with equity4,400 — 
Interest settled with equity351 — 
In December 2020, the Company borrowed an additional $2,240 through a note payable from an entity formerly controlled by the Company’s founder and former CEO. The note originally matured on July 1, 2020, bore interest at 8.99% per annum, had no covenants, and was unsecured. In conjunction with the Closing of the Business Combination, the Company paid cash and issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $2,240 
Accrued interest— 202 
Interest expense111 185 
Principal settled with equity2,240 — 
Interest settled with equity313 — 
In January 2020, the Company borrowed an additional $300 through a note payable from an entity formerly controlled by the Company’s founder and former CEO. The note originally matured on June 30, 2020, bore interest at 8% per annum, had no covenants, and was unsecured. In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $300 
Accrued interest— 23 
Interest expense13 23 
Principal settled with equity300 — 
Interest settled with equity36 — 
Proceeds— 300 
In October 2018, the Company borrowed $1,500 through a note payable from an entity formerly controlled by the Company’s founder and former CEO. The note originally matured on December 31, 2019, bore interest at 2.86% per annum, had no covenants, and was unsecured. In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $1,500 
Accrued interest— 95 
Interest expense24 43 
Principal settled with equity1,500 — 
Interest settled with equity119 — 
As a result of the September 2020 Modification of notes with principal amounts of $4,400, $2,240, $300, and $1,500, the Company recorded an immaterial gain on extinguishment and immaterial accretion of debt discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
(11)The Company issued the following notes with a related party.
In March 2019, the Company borrowed $1,500 through a note payable from a related party. The note originally matured on March 6, 2020, bore interest at 8.99% per annum, had no covenants and was unsecured. Principal repayments of $1,000 were made in 2019 and $120 in 2020. In conjunction with the Closing of the Business Combination, the Company paid cash and issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $380 
Accrued interest— 99 
Interest expense21 45 
Principal settled with equity380 — 
Interest settled with equity118 — 
Principal payments in cash— 120 
In June 2019, the Company borrowed $3,600 through a note payable from a related party, which was repaid in 2019. The note matured on July 5, 2019, bore interest at 2.99% per annum, had no covenants and was unsecured. In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Accrued interest— 4 
Interest settled with equity4 — 
In September 2019, the Company borrowed $180 through a note payable from a related party. The note originally matured December 1, 2019, bore interest at 6.99% per annum, had no covenants, and was unsecured. In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $180 
Accrued interest— 10 
Interest expense8 6 
Principal settled with equity180 — 
Interest settled with equity17 — 
In November 2019, the Company borrowed $2,700 through a note payable from a U.S. based investment firm. The note originally matured on June 3, 2020, bore interest at 6.99% per annum, had no covenants, and was unsecured. Principal payments of $1,500 were made in 2020. In conjunction with the Closing of the Business Combination, the Company paid cash and issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $1,200 
Accrued interest— 192 
Interest expense55 171 
Principal settled with equity1,200 — 
Interest settled with equity239 — 
Principal payments in cash— 1,500 
Interest payments in cash— 5 
As a result of the September 2020 Modification of the $380 notes, the $180 notes and the $1,200 notes, the Company recorded an immaterial gain on extinguishment and immaterial accretion of the debt discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
(12)The Company issued the following notes with a related party.
During 2019, a U.S. corporation controlled by a related party of the Company made deposits of $11,635 with the Company as a right of first refusal to lease FF 91 vehicles. On February 1, 2020, due to production delays the Company entered into a deposit conversion
agreement with this corporation to convert the deposit amounts previously paid into a note payable. Upon conversion, the Company reclassified the deposit recorded in other current liabilities as of December 31, 2019 to related party notes payable as of December 31, 2020. The note matured on December 31, 2020, bore interest at 8.0% per annum, had no covenants, and was unsecured.
As a result of the September 2020 Modification, the Company recorded an immaterial gain on extinguishment and immaterial accretion of debt discount in the Consolidated Statements of Operations and Comprehensive Loss during the years ended December 31, 2021 and 2020.
In conjunction with the Closing of the Business Combination, the Company issued Class A Common Stock to settle the related party note payable.
As of and for the Year Ended
December 31,
20212020
Outstanding principal$— $11,635 
Accrued interest— 1,177 
Interest expense515 933 
Principal settled with equity11,635 — 
Interest settled with equity1,692 — 
Schedule of Maturities of Long-term Debt
The future scheduled principal maturities of related party notes payable as of December 31, 2021 were as follows:
Years ended December 31,
Due on demand$13,655 
The future scheduled principal maturities of notes payable as of December 31, 2021 are as follows:
Years ended December 31,
2022130,772 
202333,917 
$164,689