|9 Months Ended|
Sep. 30, 2021
|Revenue from Contract with Customer [Abstract]|
The Company recognizes revenue for the amount collected from the customer, which may include shipping and handling charges, net of estimates for customer returns and allowances. The Company reserves for estimated returns based on known pending returns and historical trends in product returns and reduces sales accordingly. The Company records, on a gross basis, a refund liability and an asset for recovery, which are included in other current liabilities and other current assets, respectively, in the Condensed Consolidated Balance Sheets. The total refund liability and asset for recovery associated with automotive sales was $1.1 million and $0.4 million, respectively as of September 30, 2021. The Company did not record a refund liability or asset for recovery as of December 31, 2020.
Revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with the majority of revenue recognized at the point in time the customer obtains control of the products. We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. The majority of our contracts have a single performance obligation and are short term in nature.
Revenue related to repair and maintenance services are recognized over time as such services are provided. Payments for products, services, and merchandise are typically received at the point when control transfers to the customer or in accordance with payment terms customary to the business.
Credit is extended based upon an evaluation of the customer’s financial condition. Accounts receivable are stated at their estimated net realizable value. The allowance for credit losses is based on an analysis of customer accounts, which considers history of past write-offs, collections, and current and future credit conditions.
Disaggregation of Revenue
Our revenues related to the following types of business were as follows:
Automotive - consists of sales of any of our electric delivery truck platforms, net of returns and allowances.
Aviation - consists of sales of our drone systems.
Other - consists of shipping and handling charges, extended vehicle warranties, and non-warranty after-sales vehicle services.
The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef