Prepaid Expenses and Other Current Assets (Tables)
|3 Months Ended|
Mar. 31, 2022
|Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]|
|Schedule of Prepaid and Other Current Assets||
Prepaid and other current assets consisted of the following:
(1) The Company’s prepaid purchases balance consists primarily of deposits made to our suppliers for non-recurring engineering costs, capital expenditures, and production parts. The increase in prepaid purchases as compared to December 31, 2021 is primarily due to deposits on orders related to the Company’s W750 vehicle platform.(2) We record reserves on prepaid purchase balances that are significantly aged, for balances that represent deposits for certain production parts related to the Company’s C-Series vehicle platform, and for balances specifically identified as having a carrying value in excess of net realizable value. The reserve represents our best estimate of deposits on orders that we do not expect to recover.
Tabular disclosure of the amounts paid in advance for capitalized costs that will be expensed with the passage of time or the occurrence of a triggering event, and will be charged against earnings within one year or the normal operating cycle, if longer; the aggregate carrying amount of current assets, not separately presented elsewhere in the balance sheet; and other deferred costs.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef