Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
The following table provides a summary of sales activity:
Years Ended
December 31,
Sales, net of returns and allowances
$ 4,385,975  $ (994,187) $ 1,357,157 
Other sales
637,097  142,265  35,362 
Total sales, net of returns and allowances
$ 5,023,072  $ (851,922) $ 1,392,519 

The majority of sales recognized during 2022 relate to the Company's vehicle sales, primarily of sales of W4 CC vehicles, while the other sales consist of delivery service, parts sales and other services.

During 2021, the Company announced its decision to suspend deliveries of our C1000 vehicles and recall previously delivered vehicles. In connection with the recall, the Company agreed to refund our customers for all C1000 vehicles previously purchased by them. The Company determines its allowance for estimated returns based on known pending returns and historical trends in product returns. The refund liability as of December 31, 2022 and 2021 was zero and $2.4 million, respectively.

The Company also records an asset for our right to recover products from customers settling a refund liability. The Company measures the asset at the asset's former carrying amount, less any expected costs to recover, and updates the measurement of the asset arising from changes in expectations about products to be returned. The asset for recovery as of December 31, 2022 and 2021 was zero and $1.6 million, respectively.

Deferred revenue, which is equivalent to the total service fee allocated to the assembly service performance obligations that are unsatisfied as of the balance sheet date, was $5.4 million and zero as of December 31, 2022 and 2021, respectively.
Of the total deferred revenue for assembly services, we expect to recognize $3.4 million of revenue in the next 12 months.