Annual report pursuant to Section 13 and 15(d)

INVENTORY

v3.22.4
INVENTORY
 12 Months Ended
Dec. 31, 2022
Inventory Disclosure [Abstract]  
INVENTORY INVENTORY
Our inventory consisted of the following:
December 31,
2022 2021
Raw materials $ 42,500,878  $ 66,238,615 
Work in process 25,210,131  20,826,644 
Finished goods 301,645  — 
68,012,654  87,065,259 
Less: inventory reserve (59,162,512) (76,997,892)
Inventory, net $ 8,850,142  $ 10,067,367 

We reserve inventory for any excess or obsolete inventories or when we believe the net realizable value of inventories is less than the carrying value. The year over year decrease to inventory reserves was primarily driven by the continued decrease in C1000 production in 2022 culminating in the Company's decision to discontinue the program at the end of 2022. As the Company began to sell and dispose of C1000 inventory, the accompanying inventory reserves also decreased.

During the year ended December 31, 2022, we sold inventory which was being carried at zero cost as it had been fully reserved for in prior periods in connection with the Company's decision regarding the future of the C1000 vehicle platform. The Company recognized a gain on the sale of $13.4 million, net of $0.5 million of selling costs, which is recorded in Other Income in the Consolidated Statements of Operations. The selling costs of $0.5 million represent a commission paid to a related party who was a former executive of the Company.