Government Assistance

12 Months Ended

Dec. 31, 2022

Government Assistance

Government Assistance

Note 6 – Government Assistance

EVgo continuously pursues public grants, subsidies and incentives to reduce capital expenditures. EVgo has dedicated, and plans to continue to dedicate, a variety of internal and external resources to monitor, submit for and utilize available grant, subsidy and incentive funding for the development of DCFCs on a state, local and national level. EVgo’s network expansion and local build plans take into account expected timing for and availability of funding of this type.

Certain government assistance includes terms and conditions including, but not limited to, periodic reporting on a monthly, quarterly or annual basis, specific minimum uptime and operational requirements over a period of three to five years typically from the operational date. As of December 31, 2022, the Company’s commitments under government assistance are expected to expire over the next five years. Noncompliance with any of the terms or conditions could impact the Company’s ability to receive future government assistance or could result in the recapture of amounts paid to the Company by the granting agencies. The Company has evaluated the recapture provisions related to government assistance included in the capital-build liability on the consolidated balance sheets as of December 31, 2022 and concluded that it is not probable that the recapture provisions will be triggered. In addition, EVgo regularly monitors compliance with these provisions and has not been affected by noncompliance in the past.

The government assistance received is aggregated below as the programs contain similar terms and are accounted for similarly in accordance with IAS 20. As of and for the year ended December 31, 2022 balances related to government assistance were as follows:

	December 31,
(in thousands)	2022
Accounts receivable, capital-build, as of	$	6,159
Capital-build liability as of	$	18,775
Capital-build amortization included in depreciation, net of capital-build amortization, included in cost of sales for the year ended	$	3,208
Proceeds from capital build funding for the year ended	$	7,755