Quarterly report pursuant to Section 13 or 15(d)

Duke Financing Obligation

v3.19.3
Duke Financing Obligation
9 Months Ended
Sep. 30, 2019
Obligation with Joint and Several Liability Arrangement [Abstract]  
Duke Financing Obligation DUKE FINANCING OBLIGATION
On November 28, 2018, the Company entered into a Sales Agreement with Duke Energy One, Inc (“Duke”) pursuant to which the Company sold Duke 615,000 battery cells (the “615,000 Cells”) for $1,340,700. The Company will continue to use the cells in the near term for the delivery of trucks to customers. Until October 15, 2019, the Company has the right and option to require Duke to sell the 615,000 Cells back to the Company and Duke has the right and option to require the Company to purchase the 615,000 Cells at price equal to the price the 615,000 Cells were sold.
On October 14, 2019, the Company exercised its option to purchase the 615,000 Cells at a price of $2.18 per cell which will close on December 1, 2019.
The Duke transaction was accounted for as a financing obligation and the Company has recorded a $1,340,700 liability.
On November 28, 2018, in consideration for consenting to the Company selling the 615,000 Cells to Duke, which served as collateral for Arosa for their Loan Agreement, the Company issued Arosa 2,000,000 shares of common stock and restruck the exercise price of warrants previously issued to $1.25 per share.