0001760689-22-000112 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2022	Nov. 07, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity Registrant Name	Microvast Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity File Number	001-38826
Entity Tax Identification Number	83-2530757
Entity Address, Address Line One	12603 Southwest Freeway
Entity Address, Address Line Two	Suite 210
Entity Address, City or Town	Stafford
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77477
City Area Code	(281)
Local Phone Number	491-9505
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		309,292,067
Entity Central Index Key	0001760689
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common stock, par value $0.0001 per share
Trading Symbol	MVST
Security Exchange Name	NASDAQ
Warrants
Entity Information [Line Items]
Title of 12(b) Security	Redeemable warrants, exercisable for shares of common stock
Trading Symbol	MVSTW
Security Exchange Name	NASDAQ

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 295,816	$ 480,931
Restricted cash, current	83,179	55,178
Accounts receivable (net of allowance for credit losses of $5,005 and $5,436 as of December 31, 2021 and September 30, 2022, respectively)	82,707	88,717
Notes receivable	4,505	11,144
Inventories	82,262	53,424
Prepaid expenses and other current assets	19,060	17,127
Amount due from related parties	0	85
Total Current Assets	567,529	706,606
Restricted cash, non-current	36,704	0
Property, plant and equipment, net	286,346	253,057
Land use rights, net	12,328	14,008
Acquired intangible assets, net	1,696	1,882
Operating lease right-of-use assets	15,509	0
Other non-current assets	52,816	19,738
Total Assets	972,928	995,291
Current liabilities:
Accounts payable	35,972	40,408
Notes payable	72,811	60,953
Accrued expenses and other current liabilities	79,520	58,740
Advance from customers	6,589	1,526
Short-term bank borrowings	7,029	13,301
Income tax payables	655	666
Bonds payable-current	29,259	0
Total Current Liabilities	231,835	175,594
Long-term bonds payable	43,888	73,147
Long-term bank borrowings	37,956	0
Warrant liability	184	1,105
Share-based compensation liability	115	18,925
Operating lease liabilities	13,530	0
Other non-current liabilities	29,564	39,822
Total Liabilities	357,072	308,593
Commitments and contingencies (Note 16)
Shareholders’ Equity
Common Stock (par value of US$0.0001 per share, 750,000,000 and 750,000,000 shares authorized as of December 31, 2021 and September 30, 2022; 300,530,516 and 309,292,067 shares issued, and 298,843,016 and 307,604,567 shares outstanding as of December 31, 2021 and September 30, 2022)	31	30
Additional paid-in capital	1,398,171	1,306,034
Statutory reserves	6,032	6,032
Accumulated deficit	(757,467)	(632,099)
Accumulated other comprehensive income/(loss)	(30,911)	6,701
Total Shareholders’ Equity	615,856	686,698
Total Liabilities and Shareholders’ Equity	$ 972,928	$ 995,291

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 5,436	$ 5,005
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	309,292,067	300,530,516
Common stock, shares outstanding (in shares)	307,604,567	298,843,016

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenues	$ 38,616	$ 36,894	$ 139,698	$ 85,204
Cost of revenues	(36,623)	(72,779)	(132,851)	(129,100)
Gross (loss)/profit	1,993	(35,885)	6,847	(43,896)
Operating expenses:
General and administrative expenses	(22,585)	(57,058)	(83,021)	(67,810)
Research and development expenses	(11,457)	(13,518)	(33,010)	(23,199)
Selling and marketing expenses	(5,561)	(7,380)	(17,369)	(14,242)
Total operating expenses	(39,603)	(77,956)	(133,400)	(105,251)
Subsidy income	520	545	1,233	2,676
Loss from operations	(37,090)	(113,296)	(125,320)	(146,471)
Other income and expenses:
Interest income	870	97	1,604	304
Interest expense	(774)	(1,247)	(2,465)	(4,630)
Loss on changes in fair value of convertible notes	0	3,018	0	9,861
Gain on changes in fair value of warrant liability	101	1,113	921	1,113
Other (loss) income, net	349	(19)	758	25
Loss before provision for income taxes	(36,544)	(116,370)	(124,502)	(159,520)
Income tax expense	0	(106)	0	(324)
Net loss	(36,544)	(116,476)	(124,502)	(159,844)
Less: Accretion of Series C1 Preferred	0	251	0	2,257
Less: Accretion of Series C2 Preferred	0	570	0	5,132
Less: Accretion of Series D1 Preferred	0	1,190	0	10,708
Less: Accretion for noncontrolling interests	0	1,516	0	9,523
Net loss attributable to Common Stock shareholders of Microvast Holdings, Inc.	$ (36,544)	$ (120,003)	$ (124,502)	$ (187,464)
Net loss per share attributable to Common Stock shareholders of Microvast Holdings, Inc.
Basic net loss per share (in dollars per share)	$ (0.12)	$ (0.49)	$ (0.41)	$ (1.27)
Diluted net loss per share (in dollars per share)	$ (0.12)	$ (0.49)	$ (0.41)	$ (1.27)
Weighted average shares used in calculating net loss per share of common stock
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	305,977,372	243,861,780	301,821,464	147,836,650
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	305,977,372	243,861,780	301,821,464	147,836,650

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Statement of Comprehensive Income [Abstract]
Net loss	$ (36,544)	$ (116,476)	$ (124,502)	$ (159,844)
Foreign currency translation adjustment	(21,002)	(3,130)	(37,612)	(2,373)
Comprehensive loss	$ (57,546)	$ (119,606)	$ (162,114)	$ (162,217)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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+ Details

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated other Comprehensive Income (loss)	Statutory reserves
Beginning balance (in shares) at Dec. 31, 2020		99,028,297
Beginning balance at Dec. 31, 2020	$ (384,602)	$ 6	$ 0	$ (397,996)	$ 7,356	$ 6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(159,844)			(159,844)
Accretion for Series C1 Preferred	(2,257)			(2,257)
Accretion for Series C2 Preferred	(5,132)			(5,132)
Accretion for Series D1 Preferred	(10,708)			(10,708)
Accretion for redeemable noncontrolling interests	(5,841)			(5,841)
Accretion for the exiting noncontrolling interests	(3,682)			(3,682)
Issuance of common stock upon the reverse recapitalization, net of issuance costs of $42.8 million (in shares)		191,254,950
Issuance of common stock upon the reverse recapitalization, net of issuance costs of $42.8 million	1,241,671	$ 23	1,241,648
Share-based compensation (in shares)		8,551,647
Share-based compensation	49,552	$ 1	49,551
Foreign currency translation adjustments	(2,373)				(2,373)
Ending balance (in shares) at Sep. 30, 2021		298,834,894
Ending balance at Sep. 30, 2021	716,784	$ 30	1,291,199	(585,460)	4,983	6,032
Beginning balance (in shares) at Jun. 30, 2021		99,028,297
Beginning balance at Jun. 30, 2021	(451,306)	$ 6	0	(465,457)	8,113	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(116,476)			(116,476)
Accretion for Series C1 Preferred	(251)			(251)
Accretion for Series C2 Preferred	(570)			(570)
Accretion for Series D1 Preferred	(1,190)			(1,190)
Accretion for redeemable noncontrolling interests	(658)			(658)
Accretion for the exiting noncontrolling interests	(858)			(858)
Issuance of common stock upon the reverse recapitalization, net of issuance costs of $42.8 million (in shares)		191,254,950
Issuance of common stock upon the reverse recapitalization, net of issuance costs of $42.8 million	1,241,671	$ 23	1,241,648
Share-based compensation (in shares)		8,551,647
Share-based compensation	49,552	$ 1	49,551
Foreign currency translation adjustments	(3,130)				(3,130)
Ending balance (in shares) at Sep. 30, 2021		298,834,894
Ending balance at Sep. 30, 2021	716,784	$ 30	1,291,199	(585,460)	4,983	6,032
Beginning balance (in shares) at Dec. 31, 2021		298,843,016
Beginning balance at Dec. 31, 2021	686,698	$ 30	1,306,034	(632,099)	6,701	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (124,502)			(124,502)
Accounting standards update	Accounting Standards Update 2016-13 [Member]
Issuance of common stock in connection with vesting of share-based awards (in shares)		8,761,551
Issuance of common stock in connection with vesting of share-based awards	$ 0	$ 1	(1)
Share-based compensation	92,138		92,138
Foreign currency translation adjustments	(37,612)				(37,612)
Ending balance (in shares) at Sep. 30, 2022		307,604,567
Ending balance at Sep. 30, 2022	615,856	$ 31	1,398,171	(757,467)	(30,911)	6,032
Beginning balance (in shares) at Jun. 30, 2022		300,859,266
Beginning balance at Jun. 30, 2022	654,004	$ 30	1,378,774	(720,923)	(9,909)	6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(36,544)			(36,544)
Issuance of common stock in connection with vesting of share-based awards (in shares)		6,745,301
Issuance of common stock in connection with vesting of share-based awards	0	$ 1	(1)
Share-based compensation	19,398		19,398
Foreign currency translation adjustments	(21,002)				(21,002)
Ending balance (in shares) at Sep. 30, 2022		307,604,567
Ending balance at Sep. 30, 2022	$ 615,856	$ 31	$ 1,398,171	$ (757,467)	$ (30,911)	$ 6,032

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY (Parentheticals) - shares shares in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Issuance of common stock upon the reverse recapitalization	42.8	42.8

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net loss	$ (124,502)	$ (159,844)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property, plant and equipment	11	6
Depreciation of property, plant and equipment	15,161	14,398
Amortization of land use right and intangible assets	420	499
Noncash lease expenses	1,662	0
Share-based compensation	72,925	58,290
Changes in fair value of warrant liability	(921)	(1,113)
Changes in fair value of convertible notes	0	9,861
Allowance of credit losses	337	261
Provision for obsolete inventories	3,148	12,667
Impairment loss from property, plant and equipment	1,546	867
Product warranty	8,263	44,610
Changes in operating assets and liabilities:
Notes receivable	1,386	10,782
Accounts receivable	(5,024)	9,425
Inventories	(39,517)	(15,127)
Prepaid expenses and other current assets	(3,764)	(6,874)
Amount due from/to related parties	85	(128)
Operating lease right-of-use assets	(19,284)	0
Other non-current assets	216	52
Notes payable	19,942	6,868
Accounts payable	(529)	(5,944)
Advance from customers	5,608	(130)
Accrued expenses and other liabilities	(12,203)	(6,371)
Operating lease liabilities	15,389	0
Other non-current liabilities	1,050	2,292
Net cash used in operating activities	(58,595)	(24,653)
Cash flows from investing activities
Purchases of property, plant and equipment	(84,722)	(40,718)
Proceeds on disposal of property, plant and equipment	3	0
Net cash used in investing activities	(84,719)	(40,718)
Cash flows from financing activities
Proceeds from borrowings	58,708	26,603
Repayment of bank borrowings	(24,482)	(15,665)
Loans borrowing from related parties	0	8,426
Repayment of related party loans	0	(8,426)
Merger and Private Investment in Public Equity (“PIPE”) financing	0	747,791
Payment for transaction fee in connection with the merger	0	(42,821)
Payment to exited noncontrolling interests	0	(139,038)
Issuance of convertible notes	0	57,500
Net cash generated from financing activities	34,226	634,370
Effect of exchange rate changes	(11,322)	2,314
Decrease in cash, cash equivalents and restricted cash	(120,410)	571,313
Cash, cash equivalents and restricted cash at beginning of the period	536,109	41,196
Cash, cash equivalents and restricted cash at end of the period	415,699	612,509
Cash and cash equivalents	295,816	572,609
Restricted cash	119,883	39,900
Total cash, cash equivalents and restricted cash	$ 415,699	$ 612,509

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	9 Months Ended
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	Sep. 30, 2022
Accounting Policies [Abstract]
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONSMicrovast Holdings, Inc. (“Microvast” or the “Company”) and its subsidiaries (collectively, the “Group”) are primarily engaged in developing, manufacturing, and selling electronic power products for electric vehicles primarily in the Asia & Pacific region and Europe.

SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and use of estimates

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2022, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading.

The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2022.

The financial information as of December 31, 2021 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2021.

Except for the adoption of ASU 2016-02, Leases (Topic 842) and ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) on January 1, 2022, there have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019.

Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability and share based compensation.

All intercompany transactions and balances have been eliminated upon consolidation.

On July 23, 2021 (the “Closing Date”), Tuscan Holdings Corp. (“Tuscan”), consummated the previously announced merger with Microvast, Inc., a Delaware corporation, pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc., a Delaware corporation (“Merger Sub”), pursuant to which the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the merger (the “Business Combination,” and, collectively with the other transactions described in the Merger Agreement, the “Reverse Recapitalization”). As a result of the Business Combination, Tuscan was renamed “Microvast Holdings, Inc.”

Basis of presentation and use of estimates-continued

The Business Combination is accounted for as a reverse recapitalization under U.S. GAAP. This determination is primarily based on (1) Microvast, Inc.’s stockholders comprising a relative majority of the voting power of the Company and having the ability to nominate the members of the Board, (2) Microvast, Inc.’s operations prior to the Business Combination comprising the only ongoing operations of the Company, and (3) Microvast, Inc.’s senior management comprising a majority of the senior management of the Company. Under this method of accounting, Tuscan is treated as the “acquired” company for financial reporting purposes. Accordingly, the financial statements of the Company represent a continuation of the financial statements of Microvast, Inc. with the Business Combination being treated as the equivalent of Microvast, Inc. issuing stock for the net assets of Tuscan, accompanied by a recapitalization. The net assets of Tuscan are stated at historical costs, with no goodwill or other intangible assets recorded and are consolidated with Microvast Inc.’s financial statements on the Closing Date. Operations prior to the Business Combination are presented as those of Microvast, Inc. The shares and net loss per share available to holders of the Company’s Common Stock, prior to the Business Combination, have been retroactively restated as shares reflecting the Common Exchange Ratio (as defined below) established in the Business Combination Agreement.

Each of the options to purchase Microvast, Inc.’s common stock that was outstanding before the Business Combination was converted into options to acquire Common Stock by computing the number of shares and converting the exercise price based on the exchange ratio of 160.3 (the “Common Exchange Ratio”).

Emerging Growth Company

Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies.

The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.

Revenue recognition

Nature of Goods and Services

The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is providing the electronic power products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services.

Disaggregation of revenue

For the three and nine months ended September 30, 2021 and 2022, the Group derived revenues from geographic regions as follows:

Revenue recognition-continued


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
People’s Republic of China ('PRC')	$	19,720	$	26,542	$	52,012	$	80,326
Other Asia & Pacific countries	12,072		7,394		21,348		45,420
Asia & Pacific	31,792		33,936		73,360		125,746
Europe	4,908		3,432		11,466		11,062
U.S.	194		1,248		378		2,890
Total	$	36,894	$	38,616	$	85,204	$	139,698

Contract balances

Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration is unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended September 30, 2021 and 2022, the Group recognized $60 and $722 of revenue previously included in advance from customers as of July 1, 2021 and July 1, 2022, respectively. During the nine months ended September 30, 2021 and 2022, the Group recognized $1,381 and $550 of revenue previously included in advance from customers as of January 1, 2021 and January 1, 2022, respectively, which consist of payments received in advance related to its sales of lithium batteries.

Share-based compensation

Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For stock options and performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Forfeitures are recognized as they occur. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement.

Operating leases

On January 1, 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASC 842”), using the modified retrospective transition method resulting in the recording of operating lease right-of-use (ROU) assets of $18,826 and operating lease liabilities of $18,776 upon adoption. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The adoption of the new guidance did not have a material effect on the unaudited condensed consolidated statements of operations. As of September 30, 2022, the Company recorded operating lease right-of-use (ROU) assets of $15,509 and operating lease liabilities of $15,432, including current portion in the amount of $1,902, which was recorded under accrued expenses and other current liabilities on the balance sheet.

Operating leases-continued

The Company determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machine and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less.

As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term.

Warrant Liability

The Company accounts for warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. As the Private Warrants (as defined in Note 10 – Warrants) meet the definition of a derivative as contemplated in ASC 815, the Company classifies the Private Warrants as liabilities. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed statements of operations. The Private Warrants are valued using a Monte Carlo simulation model on the basis of the quoted market price of Public Warrants (as defined in Note 10 – Warrants).

Recent accounting pronouncements adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public companies, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements.

As an EGC, the Company adopted this standard on January 1, 2022, and elected not to recast the comparative periods presented. The adoption did not have a material impact on the Company's unaudited condensed consolidated statements of operations or consolidated statements of cash flows, and the adoption of Topic 842 did not result in a cumulative-effect adjustment to retained earnings. Further information is disclosed in Note 12 – Leases.

Recent accounting pronouncements adopted-continued

In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As an EGC, the Company adopted this standard on January 1, 2022, using a modified retrospective transition method and did not restate the comparable periods, which resulted in a cumulative-effect adjustment to decrease the opening balance of retained earnings on January 1, 2022 by $866. The adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements.

Recent accounting pronouncements not yet adopted

In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)-Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted net income per share calculation in certain areas. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2020-06 may have on the condensed consolidated financial statements and related disclosures.

ACCOUNTS RECEIVABLE

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:


	December 31, 2021		September 30, 2022
Accounts receivable	$	93,722	$	88,143
Allowance for credit losses	(5,005)		(5,436)
Accounts receivable, net	$	88,717	$	82,707

NOTE 3. ACCOUNTS RECEIVABLE-continued

Movement of allowance for credit losses was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Balance at beginning of the period	$	4,743	$	5,828	$	5,047	$	5,005
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)	—		—		—		866
Charges (Reversal) of expenses	457		(43)		261		337
Write off	(415)		(12)		(546)		(165)
Exchange difference	11		(337)		34		(607)
Balance at end of the period	$	4,796	$	5,436	$	4,796	$	5,436

INVENTORIES

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

INVENTORIES

Inventories consisted of the following:


	December 31, 2021		September 30, 2022
Work in process	$	20,760	$	39,739
Raw materials	25,266		30,632
Finished goods	7,398		11,891
Total	$	53,424	$	82,262

Provision for obsolete inventories at $6,569 and $1,229 were recognized for the three months ended September 30, 2021 and 2022, respectively. Provision for obsolete inventories at $12,667 and $3,148 were recognized for the nine months ended September 30, 2021 and 2022, respectively.

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2022

Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	December 31, 2021		September 30, 2022
Product warranty, current	$	20,922	$	12,350
Payables for purchase of property, plant and equipment	18,500		38,044
Other current liabilities	10,636		11,753
Accrued payroll and welfare	3,476		3,863
Accrued expenses	2,444		3,894
Interest payable	1,836		1,919
Other tax payable	926		5,795
Operating lease liabilities, current	—		1,902
Total	$	58,740	$	79,520

PRODUCT WARRANTY

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY

Movement of product warranty was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Balance at beginning of the period	$	25,543	$	43,703	$	19,356	$	58,458
Provided during the period	35,553		2,028		44,610		8,263
Utilized during the period	(9,229)		(4,357)		(12,099)		(22,957)
Exchange difference	—		(2,467)		—		(4,857)
Balance at end of the period	$	51,867	$	38,907	$	51,867	$	38,907


	December 31, 2021		September 30, 2022
Product warranty – current	$	20,922	$	12,350
Product warranty – non-current	37,536		26,557
Total	$	58,458	$	38,907

BANK BORROWINGS

9 Months Ended

Sep. 30, 2022

Bank Borrowings [Abstract]

BANK BORROWINGS

On September 27, 2022, the Group entered into a $111 million (RMB800 million) loan facilities agreement with a group of lenders led by a PRC Bank (the "2022 Facility Agreement"). The 2022 Facility Agreement has an effective drawdown period until June 9, 2023 and the interest rate is prime plus 115 basis points where prime is based on Loan Prime Rate published by the National Inter-bank Funding Center of the PRC. The interest is payable on a quarterly basis. The loan facilities can only be used for the construction project of manufacturing capacity expansion at the Group’s facility located in Huzhou, China. The 2022 Facility Agreement contains certain customary restrictive covenants, including but not limited to disposal of assets and dividend distribution without consent of the lender, and certain customary events of default.

The repayment schedule of the 2022 Facility Agreement is listed in the below table. As of September 30, 2022, the Group had outstanding borrowings of $42,173 under the 2022 Facility Agreement.


Repayment Date						Repayment Amount
June 10, 2023						$4.2 million (RMB30 million)
December 10, 2023						$9.8 million (RMB70 million)
June 10, 2024						$14.1 million (RMB100 million)
December 10, 2024						$14.1 million (RMB100 million)
June 10, 2025						$14.1 million (RMB100 million)
December 10, 2025						$14.1 million (RMB100 million)
June 10, 2026						$21.1 million (RMB150 million)
December 10, 2026						$21.1 million (RMB150 million)

NOTE 7. BANK BORROWINGS-continued

The Group also entered into short-term loan agreements and bank facilities with Chinese banks. The original terms of the loans from Chinese banks are within 12 months and the interest rates range from 4.50% to 4.75% per annum.

Changes in bank borrowings are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Beginning balance	$	26,458	$	8,807	$	12,184	$	13,301
Proceeds from bank borrowings	—		45,242		26,603		58,708
Repayments of principal	(3,400)		(7,150)		(15,665)		(24,482)
Exchange difference	(207)		(1,914)		(271)		(2,542)
Ending balance	$	22,851	$	44,985	$	22,851	$	44,985


Balance of bank borrowings includes:	December 31, 2021		September 30, 2022
Current	$	13,301	$	7,029
Non-current	—		37,956
Total	$	13,301	$	44,985

Certain assets of the Group have been pledged to secure the above bank facilities granted to the Group. The aggregate carrying amount of the assets pledged by the Group as of December 31, 2021 and September 30, 2022 are as follows:


	December 31, 2021		September 30, 2022
Buildings	$	31,361	$	26,836
Machinery and equipment	7,376		—
Land use rights	4,470		12,328
Total	$	43,207	$	39,164

OTHER NON-CURRENT LIABILITIES

9 Months Ended

Sep. 30, 2022

Other Liabilities, Noncurrent [Abstract]

OTHER NON-CURRENT LIABILITIES


	December 31, 2021		September 30, 2022
Product warranty - non-current	$	37,536	$	26,557
Deferred subsidy income- non-current	2,286		3,007
Total	$	39,822	$	29,564

BONDS PAYABLE

9 Months Ended

Sep. 30, 2022

Bonds Payable [Abstract]

BONDS PAYABLE


	December 31, 2021		September 30, 2022
Bonds payable-current
Huzhou Saiyuan Equity Investment Partnership Firm (Limited Partnership) ("Huzhou Saiyun"）	$	—	$	29,259
Total	$	—	$	29,259

Long–term bonds payable
Huzhou Saiyuan	$	73,147	$	43,888
Total	$	73,147	$	43,888

On December 29, 2018, MPS signed an agreement with Huzhou Saiyuan, an entity established by the local government, to issue convertible bonds to Huzhou Saiyuan for a total consideration of $87,776 (RMB600 million). The Company pledged its 12.39% equity holding over MPS to Huzhou Saiyuan to facilitate the issuance of convertible bonds. As of September 30, 2022, the subscription and outstanding balance of the convertible bonds was $73,147 (RMB500 million).

If the subscribed bonds are not repaid by the maturity date, Huzhou Saiyuan has the right to dispose of the equity interests pledged by the Company in proportion to the amount of matured bonds, or convert the bond to the equity interests of MPS within 60 days after the maturity date. If Huzhou Saiyuan decides to convert the bonds to equity interests of MPS, the equity interests pledged would be released and the convertible bonds should be converted to the equity interest of MPS based on the entity value of MPS at $950,000.

On September 28, 2020, MPS signed a supplemental agreement for extension on repayment of convertible bonds to Huzhou Saiyuan, and the terms on repayments and interests are as follows.

Issuance Date

Subscribed Amount

Maturity Date

Repayment Amount

Annual
Interest
Rate

February 1, 2019

$29,259 (RMB200 million)

June 30, 2023

$29,259 (RMB200 million)

3%~4%

December 31, 2018

$29,259 (RMB200 million)

April 28, 2024

$14,629 (RMB100 million)

0%~4%

July 11, 2024

$7,315 (RMB50 million)

0%~4%

October 1, 2024

$7,315 (RMB50 million)

0%~4%

January 1, 2020

$14,629 (RMB100 million)

April 13, 2026

$14,629 (RMB100 million)

3%~4%

In September 2022, MPS entered into supplement agreements with Huzhou Saiyuan to change the repayment schedule as follows: (i) $14,629 (RMB100 million) will be repaid, together with interest accrued, on or before November 10, 2022, (ii) $14,630 (RMB100 million) will be repaid, together with interest accrued, on or before December 31, 2022, and (iii) the remaining $43,888 (RMB300 million) will be repaid, together with interest accrued, on or before January 31, 2027. The applicable interest rate will be increased to 12% if the Group is in default on the repayment of the bonds at the respective due dates. The remaining terms and conditions of the convertible bonds are unchanged.

Convertible Notes at Fair Value (the “Bridge Notes”)

On January 4, 2021, the Company entered into a note purchase agreement to issue $57,500 convertible promissory notes to certain investors, fully due and payable on the third anniversary of the initial closing date. The notes bore no interest, provided, however, if a liquidity event (“Liquidity Event”) had not occurred prior to June 30, 2022, an interest rate of 6% would be applied retrospectively from the date of initial closing. The conversion of the promissory notes was contingent upon the occurrence of a Private Investment in Public Equity (“PIPE”) financing, a Liquidity Event or a new financing after June 30, 2022 but before the maturity date (“Next Financing”).

The fair value option was elected for the measurement of the convertible notes. Changes in fair value, a loss of $3,018 and $9,861 were recorded in the unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2021, respectively.

On July 23, 2021, upon the completion of the Business Combination between Microvast, Inc. and Tuscan, the convertible promissory notes were converted into 6,736,106 shares of Common Stock of the combined company.

WARRANTS

9 Months Ended

Sep. 30, 2022

Warrants [Abstract]

WARRANTS

The Company assumed 27,600,000 publicly-traded warrants (“Public Warrants”) and 837,000 private placement warrants issued to Tuscan Holdings Acquisition LLC (the “Sponsor”) and EarlyBirdCapital, Inc. (“EarlyBirdCapital”) (“Private Warrants” and together with the Public Warrants, the “Warrants”) upon the Business Combination, all of which were issued in connection with Tuscan’s initial public offering (other than 150,000 Private Warrants that were issued in connection with the closing of the Business Combination) and entitle the holder to purchase one share of the Company’s Common Stock at an exercise price of $11.50 per share. During the three and nine months ended September 30, 2022, none of the Public Warrants or the Private Warrants were exercised.

The Public Warrants became exercisable 30 days after the completion of the Business Combination. No Warrants were exercisable for cash until the Company registered Common Stock issuable upon exercise of the Warrants with the SEC. Since the registration of shares was not completed within 90 days following the Business Combination, warrant holders were able to exercise Warrants on a net-share settlement basis until the registration statement became effective on June 8, 2022. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation.

Once the Public Warrants became exercisable, the Company may redeem the Public Warrants:

•in whole and not in part;

•at a price of $0.01 per warrant;

•upon not less than 30 days’ prior written notice of redemption;

•if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and

•if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.

The Company classified the Public Warrants as equity. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a net-share settlement basis.

The Private Warrants are identical to the Public Warrants, except that the Private Warrants will be exercisable for cash or on a net-share settlement basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. In addition, so long as the Private Warrants are held by EarlyBirdCapital and its designee, the Private Warrants will expire five years from the effective date of the Business Combination.

The exercise price and number of shares of Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants.

The private warrant liability was remeasured at fair value as of September 30, 2022, resulting in a gain of $101 and $921 for the three and nine months ended September 30, 2022, classified within changes in fair value of warrant liability in the unaudited condensed consolidated statements of operations, respectively.

The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:


	September 30, 2022
Market price of public stock	$	1.81
Exercise price	$	11.50
Expected term (years)	3.82
Volatility	67.38		%
Risk-free interest rate	4.09		%
Dividend rate	0.00		%

The market price of public stock is the quoted market price of the Company’s Common Stock as of the valuation date. The exercise price is extracted from the warrant agreements. The expected term is derived from the exercisable years based on the warrant agreements. The expected volatility is a blend of implied volatility from the Company’s own public warrant pricing and the average volatility of peer companies. The risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the warrants. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the warrants.

FAIR VALUE MEASUREMENT

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENT

Measured or disclosed at fair value on a recurring basis

The Group measured its financial assets and liabilities, including cash and cash equivalents, restricted cash and warrant liability at fair value on a recurring basis as of December 31, 2021 and September 30, 2022. Cash and cash equivalents and restricted cash are classified within Level 1 of the fair value hierarchy because they are valued based on the quoted market price in an active market. The fair value of the warrant liability is based on significant unobservable inputs, which represent Level 3 measurements within the fair value hierarchy. In determining the fair value of the warrant liability, the Company used the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date. See Note 10 – Warrants.

As of December 31, 2021 and September 30, 2022, information about inputs for the fair value measurements of the Group’s assets and liabilities that are measured at fair value on a recurring basis in periods subsequent to their initial recognition is as follows:


	Fair Value Measurement as of December 31, 2021
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	480,931	—	—	$	480,931
Restricted cash	55,178		—	—	55,178
Total financial asset	$	536,109	—	—	$	536,109
Warrant liability	$	—	—	1,105	$	1,105
Total financial liability	$	—	—	1,105	$	1,105

Measured or disclosed at fair value on a recurring basis-continued


	Fair Value Measurement as of September 30, 2022
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	295,816	—	—	$	295,816
Restricted cash	$	119,883	—	—	$	119,883
Total financial asset	$	415,699	—	—	$	415,699
Warrant liability	$	—	—	184	$	184
Total financial liability	$	—	—	184	$	184

The following is a reconciliation of the beginning and ending balances for Level 3 convertible notes during the nine months ended September 30, 2021:


(In thousands)	Convertible Notes
Balance as of December 31, 2020	$	—
Issuance of convertible notes	$	57,500
Changes in fair value of convertible notes	$	9,861
Conversion as of Merger	$	(67,361)
Balance as of September 30, 2021	$	—

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the nine months ended September 30, 2021 and 2022:


(In thousands)	Nine Months Ended September 30,
	2021		2022
Balance at the beginning of the period	—		$	1,105
Assumed warrant liability upon Merger	3,574		—
Changes in fair value	(1,113)		(921)
Balance at end of the period	$	2,461	$	184

Measured or disclosed at fair value on a nonrecurring basis

The Group measured the long-lived assets using the income approach—discounted cash flow method, when events or changes in circumstances indicate that the carrying amount of an asset may no longer be recoverable.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

LEASES

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

LEASES

The Group has operating leases for office spaces and warehouses. Certain leases include renewal options and/or termination options, which are factored into the Group's determination of lease payments when appropriate.

Operating lease cost for the three and nine months ended September 30, 2022 was $743 and $2,290, respectively, which excluded cost of short-term contracts. Short-term lease cost for the three and nine months ended September 30, 2022 was $87 and $296, respectively.

As of September 30, 2022, the weighted average remaining lease term was 11.9 years and weighted average discount rate was 4.9% for the Group's operating leases.

Supplemental cash flow information of the leases were as follows:


	Nine months ended September 30, 2022
Cash payments for operating leases	$	2,330
Right-of-use assets obtained in exchange for new operating lease liabilities	$	452

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of September 30, 2022:


	As of September 30, 2022
Three months period ending December 31, 2022	$	709
2023	$	2,480
2024	$	1,870
2025	$	1,391
2026	$	1,369
2027	$	1,369
Thereafter	$	11,064
Total future lease payments	$	20,252
Less: Imputed interest	$	(4,820)
Present value of operating lease liabilities	$	15,432

SHARE-BASED PAYMENT

9 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

SHARE-BASED PAYMENT

SHARE-BASED PAYMENTOn July 21, 2021, the Company adopted the Microvast Holdings, Inc. 2021 Equity Incentive Plan (the “2021 Plan”), effective upon the Closing Date. The 2021 Plan provides for the grant of incentive and non-qualified stock option, restricted stock units, restricted share awards, stock appreciation awards, and cash-based awards to employees, directors, and consultants of the Company. Options awarded under the 2021 Plan expire no more than 10 years from the date of grant. Concurrently with the closing of the Business Combination, the share awards granted under 2012 Share Incentive Plan of Microvast, Inc. (the "2012 Plan") were rolled over by removing original performance conditions and converting into options and capped non-vested share units with modified vesting schedules, using the Common Exchange Ratio of 160.3. The 2021 Plan reserved 5% of the fully-diluted shares of Common Stock outstanding immediately following the Closing Date plus the shares underlying awards rolled over from the 2012 Plan for issuance in accordance with the 2021 Plan’s terms.

On April 14, 2022, the Company's former Chief Financial Officer's ("Former CFO") employment with the Company terminated. Simultaneously, a transition services agreement was entered into between the Company and the Former CFO for the provision of advisory services to the Company with an initial term of 18 months commencing on the date of the Former CFO's termination of employment. Upon the Former CFO's termination of employment, all 1,122,100 stock options and 2,860,713 capped non-vested share units held by the Former CFO immediately vested in full and a $4,897 cash payment was made to the Former CFO related to the settlement of capped non-vested share units. The Former CFO's stock options remain exercisable until three months following the termination of his transition services agreement with the Company. Because he continues to provide advisory services to the Company, the Former CFO is an eligible person rendering services under the 2012 Plan, and the accelerated vesting and extended exercise period of his stock options were in accordance with the terms and conditions of the Former CFO's employment agreement and stock option award agreement. As such, the changes are not considered a modification under ASC 718. During the nine months ended September 30, 2022, $16,778 of share-based compensation expense was recognized in connection with the vesting of the Former CFO's awards.

Stock options

On April 14, 2022 and June 7, 2022, the Company granted 1,800,000 and 600,000 stock options to two new executive officers and two employees, subject to service conditions, respectively. The service conditions require the participant’s continued employment with the Company through the applicable vesting dates.

On July 7, 2022, the Company granted 500,000 stock options to an employee with an exercise price of $2.42. The vesting of these options is subject to a service condition of continued employment with the Company through the applicable vesting dates and performance condition which requires the achievement of certain performance criteria as defined in the award agreement. The criteria is probable to achieve and therefore related expenses were recognized.

The grant date fair value of the stock options was determined using the Black Scholes model with the following assumptions:


	Nine months ended September 30, 2022
Exercise price	$	2.42		~	$	5.69
Expected terms (years)	6.00
Volatility	56.16		%	~	57.84		%
Risk-free interest rate	2.79		%	~	3.02		%
Expected dividend yields	0.00%
Weighted average fair value of options granted	$	1.33		~	$	3.19

The exercise prices for each award were extracted from the option agreements. The expected terms for each award were derived using the simplified method, and is estimated to occur at the midpoint of the vesting date and the expiration date. The volatility of the underlying common stock during the lives of the options was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the options. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the options. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the options.

During the three and nine months ended September 30, 2022, the Company recorded share-based compensation expense of $14,081 and $46,043 related to the option awards, respectively.

Stock options-continued

Stock options activity for the nine months ended September 30, 2021 and 2022 was as follows (all stock award activity was retroactively restated to reflect the conversion in July 2021):


Stock options life	Number of Shares	Weighted Average Exercise Price (US$)		Weighted Average Grant Date Fair Value (US$)		Weighted Average Remaining Contractual Life
Outstanding as of December 31, 2020	34,737,967	$	6.19	$	2.92	9.0
Forfeited	(1,186,220)	6.28		3.13
Outstanding as of September 30, 2021	33,551,747	$	6.19	$	4.95	8.2
Expected to vest and exercisable as of September 30, 2021	33,551,747	$	6.19	$	4.95	8.2
Outstanding as of December 31, 2021	33,503,657	6.19		4.95		7.9
Grant	2,900,000	4.81		2.69
Vested	(11,875,830)	6.20		5.00
Forfeited	(227,092)	6.28		4.86
Outstanding as of September 30, 2022	24,300,735	$	6.02	$	4.70	7.0
Expected to vest and exercisable as of September 30, 2022	24,300,735	$	6.02	$	4.70	7.0

The total unrecognized equity-based compensation costs as of September 30, 2022 related to the stock options was $103,243, which is expected to be recognized over a weighted-average period of 1.9 years. The aggregate intrinsic value of the stock options as of September 30, 2022 was $0.

Capped Non-vested share units

The capped non-vested share units ("CRSUs") represent rights for the holder to receive cash determined by the number of shares granted multiplied by the lower of the fair market value and the capped price, which will be settled in the form of cash payments. The CRSUs were accounted for as liability classified awards.

On June 27, 2022, the Board of Directors and Compensation Committee approved a modification of the settlement terms of 20,023,699 CRSUs under the 2021 Plan from cash settlement to share settlement (the “Modification”). Pursuant to the Modification, on each vesting date, if the stock price is higher than the capped price, the number of shares to be issued will be calculated based on the following formula:

Number of shares to be issued = Capped price* Number of shares vested /Vesting date stock price

If the stock price is equal to or less than the capped price, the Company will grant a fixed number of shares on each vesting date based on the vesting schedule. All other terms of the CRSUs remain unchanged. The Modification resulted in a change of the CRSUs’ classification from liability to equity, as the predominant feature of the modified CRSUs was the granting of a fixed number of shares on each vesting date instead of a fixed monetary amount. The determination of the predominant feature was based on the estimated probability of how the awards will be settled using the Monte Carlo model.

At the Modification date, the Company reclassified the amounts previously recorded as a share-based compensation liability to additional paid-in capital. The modified CRSUs were accounted for as an equity award going forward from the date of the Modification with compensation expenses recognized for each tranche at the fair value measured on the modification date.

Capped Non-vested share units-continued

At the Modification date, the Company used the Monte Carlo valuation model in determining the fair value of the CRSUs with assumptions as follows:


	Modification Date
Expected term (years)	0.07		~	2.07
Volatility	50.93	%	~	73.89	%
Risk-free interest rate	1.15	%	~	3.05	%
Expected dividend yields	0.00%

Expected term was the time left (in years) from the Modification date to the vesting date based on the terms of the applicable award agreements. The volatility of the underlying common stock was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the awards. Risk-free interest rate was estimated based on the market yield of US Government Bonds with maturity close to the expected term of the awards. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the awards.

During the three and nine months ended September 30, 2022, the Company recorded share-based compensation expense of $4,367 and $29,481, respectively, related to these CRSUs awards.

CRSUs' activity for the nine months ended September 30, 2021 and 2022 was as follows (all award activity was retroactively restated to reflect the conversion in July 2021):


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (US$)
Outstanding as of December 31, 2020	23,027,399	$	0.93
Outstanding as of September 30, 2021	23,027,399	$	8.74	1
Outstanding as of December 31, 2021	23,027,399	$	8.74
Vested	(9,582,930)	$	4.37
Outstanding as of September 30, 2022	13,444,469	$	2.38

The total unrecognized equity-based compensation costs as of September 30, 2022 related to CRSUs was $15,798.

Restricted Stock Units

Following the Business Combination, the Company granted 693,232 restricted stock units (“RSUs”) and 1,274,222 performance-based restricted stock unit (“PSU”) awards subject to service, performance and/or market conditions. The service condition requires the participant’s continued services or employment with the Company through the applicable vesting date, and the performance condition requires the achievement of the performance criteria defined in the award agreement. The market condition is based on the Company’s TSR relative to a comparator group during a specified performance period.

Restricted Stock Units-continued

The fair value of RSUs is determined by the market closing price of Common Stock at the grant date and is amortized over the vesting period on a straight-line basis. The fair value of PSUs that include vesting based on market conditions are estimated using the Monte Carlo valuation method. For PSU awards with performance conditions, share-based compensation expense is only recognized if the performance conditions become probable to be satisfied. Compensation cost for these awards is amortized on a straight-line basis over the vesting period based on the grant date fair value, regardless of whether the market condition is satisfied. Accordingly, the Company recorded share-based compensation expense of $345 and $1,048 related to these RSUs and $621 and $1,653 related to these PSUs during the three and nine months ended September 30, 2022, respectively.

The following assumptions were used for respective period to calculate the fair value of common stock to be issued under TSR awards on the date of grant using the Monte Carlo model:


	Nine months ended September 30, 2022
Expected term (years)	2.68
Volatility	59.50	%
Risk-free interest rate	2.72	%
Expected dividend yields	0.00	%

Expected term was derived based on the remaining time from the grant date through the end of the performance period. The volatility of the underlying common stock during the lives of the awards was estimated based on the historical stock price volatility of comparable listed companies over a period comparable to the expected term of the awards. Risk-free interest rate was estimated based on the market yield of US Government Bond with maturity close to the expected term of the awards. The dividend yield was estimated by the Company based on its expected dividend policy over the expected term of the awards.

The non-vested shares activity for the nine months ended September 30, 2021 and 2022 was as follows:


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of December 31, 2020	—	—
Grant	197,940	9.60
Vested	(6,157)	8.52
Outstanding as of September 30, 2021	191,783	9.63
Outstanding as of December 31, 2021	671,441	9.08
Grant	1,239,854	$	4.93
Vested	(86,996)	$	6.96
Forfeited	(58,126)	$	7.47
Outstanding as of September 30, 2022	1,766,173	$	6.33

The total unrecognized equity-based compensation costs as of September 30, 2022 related to the non-vested shares was $7,213.

The following summarizes the classification of share-based compensation:


	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Cost of revenues	$	1,964	$	5,780
General and administrative expenses	12,834		55,528
Research and development expenses	3,193		10,981
Selling and marketing expenses	1,284		5,533
Construction in process	139		403
Total	$	19,414	$	78,225

RELATED PARTY BALANCES AND TRANSACTIONS

9 Months Ended

Sep. 30, 2022

RELATED PARTY BALANCES AND TRANSACTIONS


Name						Relationship with the Group
Ochem Chemical Co., Ltd (“Ochem”)						Controlled by CEO
Ochemate Material Technologies Co., Ltd (“Ochemate”)						Controlled by CEO

(1)Related party transaction


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Raw material sold to Ochem	$	113	$	—	$	406	$	—

(2)Interest-free loans

MPS received certain interest-free loans from related parties, Ochemate and Ochem, for the nine months ended September 30, 2021 and 2022 with aggregated amounts of $8,426 and $0, respectively.

The outstanding balance for the amount due from Ochem was $85 as of December 31, 2021 and $0 as of September 30, 2022, respectively.

NET LOSS PER SHARE

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

NET LOSS PER SHARE

The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Numerator:
Net loss attributable to common stock shareholders	$	(120,003)	$	(36,544)	$	(187,464)	$	(124,502)
Denominator:
Weighted average common stock used in computing basic and diluted net loss per share	243,861,780		305,977,372		147,836,650		301,821,464
Basic and diluted net loss per share	$	(0.49)	$	(0.12)	$	(1.27)	$	(0.41)

For the three and nine months ended September 30, 2021 and 2022, the following Common Stock outstanding were excluded from the calculation of diluted net loss per share, as their inclusion would have been anti-dilutive for the periods prescribed.


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2022	2021	2022
Shares issuable upon exercise of stock options	33,641,132	27,032,668	33,869,470	31,529,919
Shares issuable upon vesting of non-vested shares	98,094	1,815,043	33,093	1,282,482
Shares issuable upon vesting of Capped non-vested shares	—	15,017,783	—	5,280,978
Shares issuable upon exercise of warrants	21,327,750	28,437,000	7,187,374	28,437,000
Shares issuable upon conversion of Series B2 Preferred	7,153,219	—	8,076,300	—
Shares issuable upon conversion of Series C1 Preferred	6,398,475	—	19,896,422	—
Shares issuable upon conversion of Series C2 Preferred	4,842,260	—	15,057,284	—
Shares issuable upon conversion of Series D1 Preferred	5,335,362	—	16,590,614	—
Shares issuable upon conversion of Series D2 Preferred	1,606,919	—	4,996,808	—
Shares issuable upon conversion of non-controlling interests of a subsidiary	4,125,761	—	12,829,289	—
Shares issuable upon vesting of Earn-out shares	14,999,991	19,999,988	5,054,942	19,999,988
Shares issuable that may be subject to cancellation	1,265,625	1,687,500	426,511	1,687,500

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation - Matthew Smith On September 4, 2017, Matthew Smith, a former employee of the Company, sent a demand letter alleging claims for breach of contract (involving stock options). On February 5, 2018, Mr. Smith filed suit against the Company asserting claims for breach of contract and asserting discrimination and retaliation claims. Mr. Smith sought the following relief: (1) a declaration that he owns 2,600 ordinary shares (the equivalent of 416,780 shares following the Business Combination) and (2) various damages and other equitable remedies over $1,000. The Company denied all allegations and wrongful conduct. Following a jury trial in September 2022, the jury returned a unanimous verdict in favor of Microvast, Mr. Wu and Mr. Zheng. All claims by Mr. Smith against Microvast, Mr. Wu and Mr. Zheng have been dismissed with prejudice. No accrual for contingency loss was recorded in the unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2021 and 2022 related to this matter. Capital commitments Capital commitments for construction of property and purchase of property, plant and equipment were $260,513 as of September 30, 2022, which is mainly for the construction of lithium battery production lines.

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS U.S. Department of Energy Grant Funding - Polyaramid Separator FacilityIn October 2022, the Company was notified by the U.S. Department of Energy ("DOE") that it had been selected, in collaboration with General Motors, to negotiate and receive $200 million in grant funding as part of President Biden's Bipartisan Infrastructure Law under the DOE's Battery Materials Processing and Battery Manufacturing initiative. The grant funding, together with additional funding to be arranged by the Company, is expected to support the construction of a new polyaramid separator manufacturing facility in the U.S. The specific terms and conditions of the grant funding remain under negotiation. Once finalized, the grant funding will remain subject to the conditions precedent and other terms and conditions to be agreed between the Company and the DOE.

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of presentation and use of estimates	Basis of presentation and use of estimates The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Security and Exchange Commission and U.S. generally accepted accounting standards (“U.S. GAAP”) for interim financial reporting. Accordingly, certain information and disclosures normally included in the notes to the annual financial statements prepared in accordance with U.S. GAAP have been omitted from these interim financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the period ended December 31, 2021 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 29, 2022, which provides a more complete discussion of the Company’s accounting policies and certain other information. In the opinion of the management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (which include normal recurring adjustments) necessary for a fair statement of financial results for the interim periods presented. The Company believes that the disclosures are adequate to make the information presented not misleading. The results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2022. The financial information as of December 31, 2021 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2021. Except for the adoption of ASU 2016-02, Leases (Topic 842) and ASU 2016-13, Financial Instruments — Credit Losses (Topic 326) on January 1, 2022, there have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements as of December 31, 2021 and 2020 and for the years ended December 31, 2021, 2020, and 2019. Significant accounting estimates reflected in the Group’s financial statements include allowance for credit losses, provision for obsolete inventories, impairment of long-lived assets, valuation allowance for deferred tax assets, product warranty, fair value measurement of warrant liability and share based compensation. All intercompany transactions and balances have been eliminated upon consolidation. On July 23, 2021 (the “Closing Date”), Tuscan Holdings Corp. (“Tuscan”), consummated the previously announced merger with Microvast, Inc., a Delaware corporation, pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated February 1, 2021, between Tuscan, Microvast, Inc. and TSCN Merger Sub Inc., a Delaware corporation (“Merger Sub”), pursuant to which the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the merger (the “Business Combination,” and, collectively with the other transactions described in the Merger Agreement, the “Reverse Recapitalization”). As a result of the Business Combination, Tuscan was renamed “Microvast Holdings, Inc.” Basis of presentation and use of estimates-continued The Business Combination is accounted for as a reverse recapitalization under U.S. GAAP. This determination is primarily based on (1) Microvast, Inc.’s stockholders comprising a relative majority of the voting power of the Company and having the ability to nominate the members of the Board, (2) Microvast, Inc.’s operations prior to the Business Combination comprising the only ongoing operations of the Company, and (3) Microvast, Inc.’s senior management comprising a majority of the senior management of the Company. Under this method of accounting, Tuscan is treated as the “acquired” company for financial reporting purposes. Accordingly, the financial statements of the Company represent a continuation of the financial statements of Microvast, Inc. with the Business Combination being treated as the equivalent of Microvast, Inc. issuing stock for the net assets of Tuscan, accompanied by a recapitalization. The net assets of Tuscan are stated at historical costs, with no goodwill or other intangible assets recorded and are consolidated with Microvast Inc.’s financial statements on the Closing Date. Operations prior to the Business Combination are presented as those of Microvast, Inc. The shares and net loss per share available to holders of the Company’s Common Stock, prior to the Business Combination, have been retroactively restated as shares reflecting the Common Exchange Ratio (as defined below) established in the Business Combination Agreement. Each of the options to purchase Microvast, Inc.’s common stock that was outstanding before the Business Combination was converted into options to acquire Common Stock by computing the number of shares and converting the exercise price based on the exchange ratio of 160.3 (the “Common Exchange Ratio”).
Emerging Growth Company	Emerging Growth Company Pursuant to the JOBS Act, an emerging growth company (the “EGC”) may adopt new or revised accounting standards that may be issued by FASB or the SEC either (i) within the same periods as those otherwise applicable to non-EGCs or (ii) within the same time periods as private companies. The Company intends to take advantage of the exemption for complying with new or revised accounting standards within the same time periods as private companies. Accordingly, the information contained herein may be different than the information provided by other public companies. The Company also intends to take advantage of some of the reduced regulatory and reporting requirements of EGCs pursuant to the JOBS Act so long as the Company qualifies as an EGC, including, but not limited to, an exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation, and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments.
Revenue recognition	Revenue recognition Nature of Goods and Services The Group’s revenue consists primarily of sales of lithium-ion batteries. The obligation of the Group is providing the electronic power products. Revenue is recognized at the point of time when control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration the Group expects to be entitled to in exchange for the goods or services. Contract balances Contract balances include accounts receivable and advances from customers. Accounts receivable represent cash not received from customers and are recorded when the rights to consideration is unconditional. The allowance for credit losses reflects the best estimate of probable losses inherent to the accounts receivable balance. Contract liabilities, recorded in advance from customers in the consolidated balance sheets, represent payment received in advance or payment received related to a material right provided to a customer to acquire additional goods or services at a discount in a future period. During the three months ended September 30, 2021 and 2022, the Group recognized $60 and $722 of revenue previously included in advance from customers as of July 1, 2021 and July 1, 2022, respectively. During the nine months ended September 30, 2021 and 2022, the Group recognized $1,381 and $550 of revenue previously included in advance from customers as of January 1, 2021 and January 1, 2022, respectively, which consist of payments received in advance related to its sales of lithium batteries.
Share-based compensation	Share-based compensation Share-based payment transactions with employees are measured based on the grant date fair value of the equity instrument and recognized as compensation expense on a straight-line basis over the requisite service period, with a corresponding impact reflected in additional paid-in capital. For share-based awards granted with performance condition, the compensation cost is recognized when it is probable that the performance condition will be achieved. The Company reassesses the probability of achieving the performance condition at the end of each reporting date and records a cumulative catch-up adjustment for any changes to its assessment. For stock options and performance-based awards with a market condition, such as awards using total shareholder return (“TSR”) as a performance metric, compensation expense is recognized on a straight-line basis over the estimated service period of the award, regardless of whether the market condition is satisfied. Forfeitures are recognized as they occur. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement.
Operating leases	Operating leases On January 1, 2022, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASC 842”), using the modified retrospective transition method resulting in the recording of operating lease right-of-use (ROU) assets of $18,826 and operating lease liabilities of $18,776 upon adoption. Prior period amounts have not been adjusted and continue to be reported in accordance with the previous accounting guidance. The adoption of the new guidance did not have a material effect on the unaudited condensed consolidated statements of operations. As of September 30, 2022, the Company recorded operating lease right-of-use (ROU) assets of $15,509 and operating lease liabilities of $15,432, including current portion in the amount of $1,902, which was recorded under accrued expenses and other current liabilities on the balance sheet. Operating leases-continued The Company determines if an arrangement is a lease or contains a lease at lease inception. Operating leases are required to record in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. The Company has elected the package of practical expedients, which allows the Company not to reassess (1) whether any expired or existing contracts as of the adoption date are or contain a lease, (2) lease classification for any expired or existing leases as of the adoption date and (3) initial direct costs for any expired or existing leases as of the adoption date. The Company also elected the practical expedient not to separate lease and non-lease components of contracts. Lastly, for lease assets other than real estate, such as printing machine and electronic appliances, the Company elected the short-term lease exemption as their lease terms are 12 months or less. As the rate implicit in the lease is not readily determinable, the Company estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The incremental borrowing rate is estimated in a portfolio approach to approximate the interest rate on a collateralized basis with similar terms and payments in a similar economic environment. Lease expense is recorded on a straight-line basis over the lease term.
Warrant Liability	Warrant Liability The Company accounts for warrants in accordance with the guidance contained in ASC 815-40 under which the warrants do not meet the criteria for equity treatment and must be recorded as liabilities. As the Private Warrants (as defined in Note 10 – Warrants) meet the definition of a derivative as contemplated in ASC 815, the Company classifies the Private Warrants as liabilities. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the condensed statements of operations. The Private Warrants are valued using a Monte Carlo simulation model on the basis of the quoted market price of Public Warrants (as defined in Note 10 – Warrants).
Recent accounting pronouncements adopted and not yet adopted	Recent accounting pronouncements adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance supersedes existing guidance on accounting for leases with the main difference being that operating leases are to be recorded in the statement of financial position as right-of-use assets and lease liabilities, initially measured at the present value of the lease payments. For operating leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election not to recognize lease assets and liabilities. For public companies, the guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the guidance is permitted. In July 2018, ASU 2016-02 was updated with ASU 2018-11, Targeted Improvements to ASC 842, which provides entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU 2018-11, (1) entities may elect not to recast the comparative periods presented when transitioning to ASC 842 and (2) lessors may elect not to separate lease and non-lease components when certain conditions are met. Before ASU 2018-11 was issued, transition to the new lease standard required application of the new guidance at the beginning of the earliest comparative period presented in the financial statements. As an EGC, the Company adopted this standard on January 1, 2022, and elected not to recast the comparative periods presented. The adoption did not have a material impact on the Company's unaudited condensed consolidated statements of operations or consolidated statements of cash flows, and the adoption of Topic 842 did not result in a cumulative-effect adjustment to retained earnings. Further information is disclosed in Note 12 – Leases. Recent accounting pronouncements adopted-continued In June 2016, the FASB issued ASU 2016-13, Financial Instruments — Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As an EGC, the Company adopted this standard on January 1, 2022, using a modified retrospective transition method and did not restate the comparable periods, which resulted in a cumulative-effect adjustment to decrease the opening balance of retained earnings on January 1, 2022 by $866. The adoption did not have a material impact on the Company’s unaudited condensed consolidated financial statements. Recent accounting pronouncements not yet adopted In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40)-Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted net income per share calculation in certain areas. For SEC filers, excluding smaller reporting companies, ASU 2020-06 is effective for fiscal years beginning after December 15, 2021 including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. For all other entities, ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. The Company is currently evaluating the impact that ASU 2020-06 may have on the condensed consolidated financial statements and related disclosures.
Debt instrument term, description	The original terms of the loans from Chinese banks are within 12 months and the interest rates range from 4.50% to 4.75% per annum
Public Warrants	Once the Public Warrants became exercisable, the Company may redeem the Public Warrants: •in whole and not in part; •at a price of $0.01 per warrant; •upon not less than 30 days’ prior written notice of redemption; •if, and only if, the reported last sale price of the Company’s Common Stock equals or exceeds $18.00 per share for any 20-trading days within a 30-trading day period ending on the third business day prior to the notice of redemption to the warrant holders; and •if, and only if, there is a current registration statement in effect with respect to the shares of Common Stock underlying the warrants.

SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Disaggregation of Revenue

For the three and nine months ended September 30, 2021 and 2022, the Group derived revenues from geographic regions as follows:

Revenue recognition-continued


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
People’s Republic of China ('PRC')	$	19,720	$	26,542	$	52,012	$	80,326
Other Asia & Pacific countries	12,072		7,394		21,348		45,420
Asia & Pacific	31,792		33,936		73,360		125,746
Europe	4,908		3,432		11,466		11,062
U.S.	194		1,248		378		2,890
Total	$	36,894	$	38,616	$	85,204	$	139,698

ACCOUNTS RECEIVABLE (Tables)

9 Months Ended

Sep. 30, 2022

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consisted of the following:


	December 31, 2021		September 30, 2022
Accounts receivable	$	93,722	$	88,143
Allowance for credit losses	(5,005)		(5,436)
Accounts receivable, net	$	88,717	$	82,707

Schedule of Allowance for Credit Losses

Movement of allowance for credit losses was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Balance at beginning of the period	$	4,743	$	5,828	$	5,047	$	5,005
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)	—		—		—		866
Charges (Reversal) of expenses	457		(43)		261		337
Write off	(415)		(12)		(546)		(165)
Exchange difference	11		(337)		34		(607)
Balance at end of the period	$	4,796	$	5,436	$	4,796	$	5,436

INVENTORIES (Tables)

9 Months Ended

Sep. 30, 2022

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following:


	December 31, 2021		September 30, 2022
Work in process	$	20,760	$	39,739
Raw materials	25,266		30,632
Finished goods	7,398		11,891
Total	$	53,424	$	82,262

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2022

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities


	December 31, 2021		September 30, 2022
Product warranty, current	$	20,922	$	12,350
Payables for purchase of property, plant and equipment	18,500		38,044
Other current liabilities	10,636		11,753
Accrued payroll and welfare	3,476		3,863
Accrued expenses	2,444		3,894
Interest payable	1,836		1,919
Other tax payable	926		5,795
Operating lease liabilities, current	—		1,902
Total	$	58,740	$	79,520

PRODUCT WARRANTY (Tables)

9 Months Ended

Sep. 30, 2022

Product Warranties Disclosures [Abstract]

Schedule of Movement of Product Warranty

Movement of product warranty was as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Balance at beginning of the period	$	25,543	$	43,703	$	19,356	$	58,458
Provided during the period	35,553		2,028		44,610		8,263
Utilized during the period	(9,229)		(4,357)		(12,099)		(22,957)
Exchange difference	—		(2,467)		—		(4,857)
Balance at end of the period	$	51,867	$	38,907	$	51,867	$	38,907

Schedule of Warranty Cost


	December 31, 2021		September 30, 2022
Product warranty – current	$	20,922	$	12,350
Product warranty – non-current	37,536		26,557
Total	$	58,458	$	38,907

BANK BORROWINGS (Tables)

9 Months Ended

Sep. 30, 2022

Bank Borrowings [Abstract]

Schedule of Bank Borrowings Repayment


Repayment Date						Repayment Amount
June 10, 2023						$4.2 million (RMB30 million)
December 10, 2023						$9.8 million (RMB70 million)
June 10, 2024						$14.1 million (RMB100 million)
December 10, 2024						$14.1 million (RMB100 million)
June 10, 2025						$14.1 million (RMB100 million)
December 10, 2025						$14.1 million (RMB100 million)
June 10, 2026						$21.1 million (RMB150 million)
December 10, 2026						$21.1 million (RMB150 million)

Schedule of Bank Borrowings

Changes in bank borrowings are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Beginning balance	$	26,458	$	8,807	$	12,184	$	13,301
Proceeds from bank borrowings	—		45,242		26,603		58,708
Repayments of principal	(3,400)		(7,150)		(15,665)		(24,482)
Exchange difference	(207)		(1,914)		(271)		(2,542)
Ending balance	$	22,851	$	44,985	$	22,851	$	44,985


Balance of bank borrowings includes:	December 31, 2021		September 30, 2022
Current	$	13,301	$	7,029
Non-current	—		37,956
Total	$	13,301	$	44,985

Schedule of Banking Facilities and Aggregate Carrying Amount

The aggregate carrying amount of the assets pledged by the Group as of December 31, 2021 and September 30, 2022 are as follows:


	December 31, 2021		September 30, 2022
Buildings	$	31,361	$	26,836
Machinery and equipment	7,376		—
Land use rights	4,470		12,328
Total	$	43,207	$	39,164

OTHER NON-CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2022

Other Liabilities, Noncurrent [Abstract]

Schedule of Other Non-Current Liabilities


	December 31, 2021		September 30, 2022
Product warranty - non-current	$	37,536	$	26,557
Deferred subsidy income- non-current	2,286		3,007
Total	$	39,822	$	29,564

BONDS PAYABLE (Tables)

9 Months Ended

Sep. 30, 2022

Bonds Payable [Abstract]

Schedule of Bonds Payable


	December 31, 2021		September 30, 2022
Bonds payable-current
Huzhou Saiyuan Equity Investment Partnership Firm (Limited Partnership) ("Huzhou Saiyun"）	$	—	$	29,259
Total	$	—	$	29,259

Long–term bonds payable
Huzhou Saiyuan	$	73,147	$	43,888
Total	$	73,147	$	43,888

Schedule of Bank Borrowings Repayment and Interest

On September 28, 2020, MPS signed a supplemental agreement for extension on repayment of convertible bonds to Huzhou Saiyuan, and the terms on repayments and interests are as follows.

Issuance Date

Subscribed Amount

Maturity Date

Repayment Amount

Annual
Interest
Rate

February 1, 2019

$29,259 (RMB200 million)

June 30, 2023

$29,259 (RMB200 million)

3%~4%

December 31, 2018

$29,259 (RMB200 million)

April 28, 2024

$14,629 (RMB100 million)

0%~4%

July 11, 2024

$7,315 (RMB50 million)

0%~4%

October 1, 2024

$7,315 (RMB50 million)

0%~4%

January 1, 2020

$14,629 (RMB100 million)

April 13, 2026

$14,629 (RMB100 million)

3%~4%

WARRANTS (Tables)

9 Months Ended

Sep. 30, 2022

Warrants [Abstract]

Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option

The Private Warrants were valued using the following assumptions under the Monte Carlo Model that assumes optimal exercise of the Company’s redemption option at the earliest possible date:


	September 30, 2022
Market price of public stock	$	1.81
Exercise price	$	11.50
Expected term (years)	3.82
Volatility	67.38		%
Risk-free interest rate	4.09		%
Dividend rate	0.00		%

FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


	Fair Value Measurement as of December 31, 2021
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	480,931	—	—	$	480,931
Restricted cash	55,178		—	—	55,178
Total financial asset	$	536,109	—	—	$	536,109
Warrant liability	$	—	—	1,105	$	1,105
Total financial liability	$	—	—	1,105	$	1,105

Measured or disclosed at fair value on a recurring basis-continued


	Fair Value Measurement as of September 30, 2022
(In thousands)	Quoted Prices in Active Market for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total
Cash and cash equivalents	$	295,816	—	—	$	295,816
Restricted cash	$	119,883	—	—	$	119,883
Total financial asset	$	415,699	—	—	$	415,699
Warrant liability	$	—	—	184	$	184
Total financial liability	$	—	—	184	$	184

Schedule of Reconciliation of the Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following is a reconciliation of the beginning and ending balances for Level 3 convertible notes during the nine months ended September 30, 2021:


(In thousands)	Convertible Notes
Balance as of December 31, 2020	$	—
Issuance of convertible notes	$	57,500
Changes in fair value of convertible notes	$	9,861
Conversion as of Merger	$	(67,361)
Balance as of September 30, 2021	$	—

Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the nine months ended September 30, 2021 and 2022:


(In thousands)	Nine Months Ended September 30,
	2021		2022
Balance at the beginning of the period	—		$	1,105
Assumed warrant liability upon Merger	3,574		—
Changes in fair value	(1,113)		(921)
Balance at end of the period	$	2,461	$	184

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

LEASES (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information of the leases were as follows:


	Nine months ended September 30, 2022
Cash payments for operating leases	$	2,330
Right-of-use assets obtained in exchange for new operating lease liabilities	$	452

Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of September 30, 2022:


	As of September 30, 2022
Three months period ending December 31, 2022	$	709
2023	$	2,480
2024	$	1,870
2025	$	1,391
2026	$	1,369
2027	$	1,369
Thereafter	$	11,064
Total future lease payments	$	20,252
Less: Imputed interest	$	(4,820)
Present value of operating lease liabilities	$	15,432

SHARE-BASED PAYMENT (Tables)

9 Months Ended

Sep. 30, 2022

Share-based Payment Arrangement [Abstract]

Schedule of Stock Option Activity Plan

The grant date fair value of the stock options was determined using the Black Scholes model with the following assumptions:


	Nine months ended September 30, 2022
Exercise price	$	2.42		~	$	5.69
Expected terms (years)	6.00
Volatility	56.16		%	~	57.84		%
Risk-free interest rate	2.79		%	~	3.02		%
Expected dividend yields	0.00%
Weighted average fair value of options granted	$	1.33		~	$	3.19

At the Modification date, the Company used the Monte Carlo valuation model in determining the fair value of the CRSUs with assumptions as follows:


	Modification Date
Expected term (years)	0.07		~	2.07
Volatility	50.93	%	~	73.89	%
Risk-free interest rate	1.15	%	~	3.05	%
Expected dividend yields	0.00%

The following assumptions were used for respective period to calculate the fair value of common stock to be issued under TSR awards on the date of grant using the Monte Carlo model:


	Nine months ended September 30, 2022
Expected term (years)	2.68
Volatility	59.50	%
Risk-free interest rate	2.72	%
Expected dividend yields	0.00	%

Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM

Stock options activity for the nine months ended September 30, 2021 and 2022 was as follows (all stock award activity was retroactively restated to reflect the conversion in July 2021):


Stock options life	Number of Shares	Weighted Average Exercise Price (US$)		Weighted Average Grant Date Fair Value (US$)		Weighted Average Remaining Contractual Life
Outstanding as of December 31, 2020	34,737,967	$	6.19	$	2.92	9.0
Forfeited	(1,186,220)	6.28		3.13
Outstanding as of September 30, 2021	33,551,747	$	6.19	$	4.95	8.2
Expected to vest and exercisable as of September 30, 2021	33,551,747	$	6.19	$	4.95	8.2
Outstanding as of December 31, 2021	33,503,657	6.19		4.95		7.9
Grant	2,900,000	4.81		2.69
Vested	(11,875,830)	6.20		5.00
Forfeited	(227,092)	6.28		4.86
Outstanding as of September 30, 2022	24,300,735	$	6.02	$	4.70	7.0
Expected to vest and exercisable as of September 30, 2022	24,300,735	$	6.02	$	4.70	7.0

Schedule Non-vested Shares Activity

CRSUs' activity for the nine months ended September 30, 2021 and 2022 was as follows (all award activity was retroactively restated to reflect the conversion in July 2021):


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (US$)
Outstanding as of December 31, 2020	23,027,399	$	0.93
Outstanding as of September 30, 2021	23,027,399	$	8.74	1
Outstanding as of December 31, 2021	23,027,399	$	8.74
Vested	(9,582,930)	$	4.37
Outstanding as of September 30, 2022	13,444,469	$	2.38

The non-vested shares activity for the nine months ended September 30, 2021 and 2022 was as follows:


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of December 31, 2020	—	—
Grant	197,940	9.60
Vested	(6,157)	8.52
Outstanding as of September 30, 2021	191,783	9.63
Outstanding as of December 31, 2021	671,441	9.08
Grant	1,239,854	$	4.93
Vested	(86,996)	$	6.96
Forfeited	(58,126)	$	7.47
Outstanding as of September 30, 2022	1,766,173	$	6.33

Schedule of Classification of Stock-based Compensation

The following summarizes the classification of share-based compensation:


	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Cost of revenues	$	1,964	$	5,780
General and administrative expenses	12,834		55,528
Research and development expenses	3,193		10,981
Selling and marketing expenses	1,284		5,533
Construction in process	139		403
Total	$	19,414	$	78,225

Related Party Balances and Transactions (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Relationship with the Group


Name						Relationship with the Group
Ochem Chemical Co., Ltd (“Ochem”)						Controlled by CEO
Ochemate Material Technologies Co., Ltd (“Ochemate”)						Controlled by CEO

Schedule of Related Party Transactions


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Raw material sold to Ochem	$	113	$	—	$	406	$	—

NET LOSS PER SHARE (Tables)

9 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Computation of Basic and Diluted Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share for the periods indicated:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2022		2021		2022
Numerator:
Net loss attributable to common stock shareholders	$	(120,003)	$	(36,544)	$	(187,464)	$	(124,502)
Denominator:
Weighted average common stock used in computing basic and diluted net loss per share	243,861,780		305,977,372		147,836,650		301,821,464
Basic and diluted net loss per share	$	(0.49)	$	(0.12)	$	(1.27)	$	(0.41)

Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share


	Three Months Ended September 30,		Nine Months Ended September 30,
	2021	2022	2021	2022
Shares issuable upon exercise of stock options	33,641,132	27,032,668	33,869,470	31,529,919
Shares issuable upon vesting of non-vested shares	98,094	1,815,043	33,093	1,282,482
Shares issuable upon vesting of Capped non-vested shares	—	15,017,783	—	5,280,978
Shares issuable upon exercise of warrants	21,327,750	28,437,000	7,187,374	28,437,000
Shares issuable upon conversion of Series B2 Preferred	7,153,219	—	8,076,300	—
Shares issuable upon conversion of Series C1 Preferred	6,398,475	—	19,896,422	—
Shares issuable upon conversion of Series C2 Preferred	4,842,260	—	15,057,284	—
Shares issuable upon conversion of Series D1 Preferred	5,335,362	—	16,590,614	—
Shares issuable upon conversion of Series D2 Preferred	1,606,919	—	4,996,808	—
Shares issuable upon conversion of non-controlling interests of a subsidiary	4,125,761	—	12,829,289	—
Shares issuable upon vesting of Earn-out shares	14,999,991	19,999,988	5,054,942	19,999,988
Shares issuable that may be subject to cancellation	1,265,625	1,687,500	426,511	1,687,500

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jan. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jul. 23, 2021	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Significant Accounting Policies [Line Items]
Exchange ratio								160.3
Revenue recognized	$ 722	$ 60	$ 550	$ 1,381
Operating lease right-of-use assets	15,509		15,509			$ 18,826	$ 0
Present value of operating lease liabilities	15,432		15,432			18,776
Operating lease liabilities, current	1,902		1,902				0
Stockholders' equity, including portion attributable to noncontrolling interest	615,856	716,784	615,856	716,784	$ 654,004		686,698		$ (451,306)	$ (384,602)
Accumulated deficit
Significant Accounting Policies [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest	$ (757,467)	$ (585,460)	$ (757,467)	$ (585,460)	$ (720,923)		$ (632,099)		$ (465,457)	$ (397,996)
Cumulative Effect, Period of Adoption, Adjustment
Significant Accounting Policies [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest						(866)
Cumulative Effect, Period of Adoption, Adjustment \| Accumulated deficit
Significant Accounting Policies [Line Items]
Stockholders' equity, including portion attributable to noncontrolling interest						$ (866)

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 14: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Significant Accounting Policies [Line Items]
Revenue	$ 38,616	$ 36,894	$ 139,698	$ 85,204
People’s Republic of China ('PRC')
Significant Accounting Policies [Line Items]
Revenue	26,542	19,720	80,326	52,012
Other Asia & Pacific countries
Significant Accounting Policies [Line Items]
Revenue	7,394	12,072	45,420	21,348
Asia & Pacific
Significant Accounting Policies [Line Items]
Revenue	33,936	31,792	125,746	73,360
Europe
Significant Accounting Policies [Line Items]
Revenue	3,432	4,908	11,062	11,466
U.S.
Significant Accounting Policies [Line Items]
Revenue	$ 1,248	$ 194	$ 2,890	$ 378

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

ACCOUNTS RECEIVABLE- Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Accounts receivable	$ 88,143	$ 93,722
Allowance for credit losses	(5,436)	(5,005)
Accounts receivable, net	$ 82,707	$ 88,717

ACCOUNTS RECEIVABLE - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of the period	$ 5,828	$ 4,743	$ 5,005	$ 5,047
Charges (Reversal) of expenses	(43)	457	337	261
Write off	(12)	(415)	(165)	(546)
Exchange difference	(337)	11	(607)	34
Balance at end of the period	5,436	$ 4,796	5,436	$ 4,796
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of the period	$ 0		$ 866

INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Work in process	$ 39,739	$ 20,760
Raw materials	30,632	25,266
Finished goods	11,891	7,398
Total	$ 82,262	$ 53,424

INVENTORIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
INVENTORIES - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Inventory Disclosure [Abstract]
Provision for obsolete inventories	$ 1,229	$ 6,569	$ 3,148	$ 12,667

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accrued Liabilities and Other Liabilities [Abstract]
Product warranty, current	$ 12,350	$ 20,922
Payables for purchase of property, plant and equipment	38,044	18,500
Other current liabilities	11,753	10,636
Accrued payroll and welfare	3,863	3,476
Accrued expenses	3,894	2,444
Interest payable	1,919	1,836
Other tax payable	5,795	926
Operating lease liabilities, current	1,902	0
Total	$ 79,520	$ 58,740

PRODUCT WARRANTY - Schedule of Movement of Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of the period					$ 43,703	$ 58,458	$ 25,543	$ 19,356
Provided during the period	$ 2,028	$ 35,553	$ 8,263	$ 44,610
Utilized during the period	(4,357)	(9,229)	(22,957)	(12,099)
Exchange difference	(2,467)	0	(4,857)	0
Balance at end of the period	$ 38,907	$ 51,867	$ 38,907	$ 51,867

PRODUCT WARRANTY - Schedule of Warranty Cost (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Product Warranties Disclosures [Abstract]
Product warranty – current	$ 12,350	$ 20,922
Product warranty – non-current	26,557	37,536
Total	$ 38,907	$ 58,458

BANK BORROWINGS - Narrative (Details) $ in Thousands, ¥ in Millions		9 Months Ended
	Sep. 27, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 27, 2022 CNY (¥)
Syndicated Loan Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 111,000		¥ 800
Proceeds from lines of credit		$ 42,173
Syndicated Loan Agreement \| National Interbank Funding Center Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	115.00%
Minimum
Debt Instrument [Line Items]
Long-term debt, percentage bearing variable interest, percentage rate		4.50%
Maximum
Debt Instrument [Line Items]
Long-term debt, term		12 months
Long-term debt, percentage bearing variable interest, percentage rate		4.75%

BANK BORROWINGS - Schedule of Bank Borrowings Repayment (Details) - Forecast ¥ in Millions, $ in Millions	Dec. 10, 2026 USD ($)	Dec. 10, 2026 CNY (¥)	Jun. 10, 2026 USD ($)	Jun. 10, 2026 CNY (¥)	Dec. 10, 2025 USD ($)	Dec. 10, 2025 CNY (¥)	Jun. 10, 2025 USD ($)	Jun. 10, 2025 CNY (¥)	Dec. 10, 2024 USD ($)	Dec. 10, 2024 CNY (¥)	Jun. 10, 2024 USD ($)	Jun. 10, 2024 CNY (¥)	Dec. 10, 2023 USD ($)	Dec. 10, 2023 CNY (¥)	Jun. 10, 2023 USD ($)	Jun. 10, 2023 CNY (¥)
June 10, 2023
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)															$ 4.2	¥ 30
December 10, 2023
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)													$ 9.8	¥ 70
June 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)											$ 14.1	¥ 100
December 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)									$ 14.1	¥ 100
June 10, 2025
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)							$ 14.1	¥ 100
December 10, 2025
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)					$ 14.1	¥ 100
June 10, 2026
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)			$ 21.1	¥ 150
December 10, 2026
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)	$ 21.1	¥ 150

BANK BORROWINGS - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Bank Borrowing [Roll Forward]
Beginning balance					$ 8,807	$ 13,301	$ 26,458	$ 12,184
Proceeds from bank borrowings	$ 45,242	$ 0	$ 58,708	$ 26,603
Repayments of principal	(7,150)	(3,400)	(24,482)	(15,665)
Exchange difference	(1,914)	(207)	(2,542)	(271)
Ending balance	44,985	$ 22,851	44,985	$ 22,851
Current	7,029		7,029			13,301
Non-current	37,956		37,956			0
Total	$ 44,985		$ 44,985			$ 13,301

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

BANK BORROWINGS - Schedule of Banking Facilities and Aggregate Carrying Amount (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Bank Borrowings [Abstract]
Buildings	$ 26,836	$ 31,361
Machinery and equipment	0	7,376
Land use rights	12,328	4,470
Total	$ 39,164	$ 43,207

OTHER NON-CURRENT LIABILITIES - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other Liabilities, Noncurrent [Abstract]
Product warranty - non-current	$ 26,557	$ 37,536
Deferred subsidy income- non-current	3,007	2,286
Total	$ 29,564	$ 39,822

BONDS PAYABLE - Schedule of Bonds Payable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,888	$ 73,147
Huzhou Saiyuan Equity Investment Partnership Firm (Limited Partnership) ("Huzhou Saiyun"）
Bonds Payable [Line Items]
Bonds payable, Total	29,259	0
Huzhou Saiyuan
Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,888	$ 73,147

BONDS PAYABLE - Narrative (Details) $ in Thousands, ¥ in Millions									3 Months Ended		9 Months Ended
	Jan. 31, 2027 USD ($)	Jan. 31, 2027 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Nov. 10, 2022 USD ($)	Nov. 10, 2022 CNY (¥)	Jul. 23, 2021 shares	Jan. 04, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 CNY (¥)	Dec. 29, 2018 USD ($)	Dec. 29, 2018 CNY (¥)
Bonds Payable [Line Items]
Bond loan														$ 87,776	¥ 600
Equity holding pledged percentage														12.39%	12.39%
Subscribed amount (in dollars and yuan renminbi)									$ 73,147		$ 73,147		¥ 500
Debt instrument, convertible amount, subsidiary value threshold											$ 950,000
Debt instrument, interest rate, stated percentage									12.00%		12.00%		12.00%
Purchase agreement to issue convertible promissory note amount								$ 57,500
Interest rate								6.00%
Loss on changes in fair value of convertible notes									$ 0	$ 3,018	$ 0	$ 9,861
Convertible promissory notes converted common stock shares (in shares) \| shares							6,736,106
Forecast
Bonds Payable [Line Items]
Repayments of convertible debt (in dollars and yuan renminbi)	$ 43,888	¥ 300	$ 14,630	¥ 100
Subsequent Event
Bonds Payable [Line Items]
Repayments of convertible debt (in dollars and yuan renminbi)					$ 14,629	¥ 100

BONDS PAYABLE - Schedule of Repayments and Interests (Details) $ in Thousands, ¥ in Millions	Apr. 13, 2026 USD ($)	Apr. 13, 2026 CNY (¥)	Oct. 01, 2024 USD ($)	Oct. 01, 2024 CNY (¥)	Jul. 11, 2024 USD ($)	Jul. 11, 2024 CNY (¥)	Apr. 28, 2024 USD ($)	Apr. 28, 2024 CNY (¥)	Jun. 30, 2023 USD ($)	Jun. 30, 2023 CNY (¥)	Sep. 30, 2022 USD ($)	Sep. 30, 2022 CNY (¥)	Jan. 01, 2020 USD ($)	Jan. 01, 2020 CNY (¥)	Feb. 01, 2019 USD ($)	Feb. 01, 2019 CNY (¥)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 CNY (¥)
Bonds Payable [Line Items]
Subscribed amount (in dollars and yuan renminbi)											$ 73,147	¥ 500
Debt instrument, interest rate, stated percentage											12.00%	12.00%
June 30, 2023
Bonds Payable [Line Items]
Subscribed amount (in dollars and yuan renminbi)															$ 29,259	¥ 200
June 30, 2023 \| Forecast
Bonds Payable [Line Items]
Repayment amount (in dollars and yuan renminbi)									$ 29,259	¥ 200
April 28, 2024
Bonds Payable [Line Items]
Subscribed amount (in dollars and yuan renminbi)																	$ 29,259	¥ 200
April 28, 2024 \| Forecast
Bonds Payable [Line Items]
Repayment amount (in dollars and yuan renminbi)							$ 14,629	¥ 100
July 11, 2024 \| Forecast
Bonds Payable [Line Items]
Repayment amount (in dollars and yuan renminbi)					$ 7,315	¥ 50
October 1, 2024 \| Forecast
Bonds Payable [Line Items]
Repayment amount (in dollars and yuan renminbi)			$ 7,315	¥ 50
April 13, 2026
Bonds Payable [Line Items]
Subscribed amount (in dollars and yuan renminbi)													$ 14,629	¥ 100
April 13, 2026 \| Forecast
Bonds Payable [Line Items]
Repayment amount (in dollars and yuan renminbi)	$ 14,629	¥ 100
Minimum \| June 30, 2023
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											3.00%	3.00%
Minimum \| April 28, 2024
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											0.00%	0.00%
Minimum \| July 11, 2024
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											0.00%	0.00%
Minimum \| October 1, 2024
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											0.00%	0.00%
Minimum \| April 13, 2026
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											3.00%	3.00%
Maximum \| June 30, 2023
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											4.00%	4.00%
Maximum \| April 28, 2024
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											4.00%	4.00%
Maximum \| July 11, 2024
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											4.00%	4.00%
Maximum \| October 1, 2024
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											4.00%	4.00%
Maximum \| April 13, 2026
Bonds Payable [Line Items]
Debt instrument, interest rate, stated percentage											4.00%	4.00%

WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Warrants (Details) [Line Items]
Shares issued (in shares)		27,600,000
Class of warrant or right, exercisable period	30 days	30 days
Class of warrant or right, registration completion period	90 days	90 days
Warrant term		5 years
Changes in fair value of warrant liability		$ (921)	$ (1,113)
Public Warrants
Warrants (Details) [Line Items]
Warrant redemption price (in dollars per share)	$ 0.01	$ 0.01
Class of warrant or right, notice of redemption, minimum period	30 days	30 days
Stock price minimum to redeem warrants (in dollars per share)	$ 18.00	$ 18.00
Warrant redemption, consecutive trading days	20 days	20 days
Warrant redemption, trading days	30 days	30 days
Tuscan Holdings Corp and EarlyBirdCapital, Inc.
Warrants (Details) [Line Items]
Shares issued (in shares)		837,000
Warrants
Warrants (Details) [Line Items]
Warrant issued (in shares)		150,000
Class of warrant or right, number of securities called by each warrant or right (in shares)	1	1
Exercise price (in dollars per share)	$ 11.50	$ 11.50
Warrant term		5 years
Changes in fair value of warrant liability	$ 101	$ 921

WARRANTS - Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option (Details) - Warrants	Sep. 30, 2022 $ / shares
Warrants [Line Items]
Market price of public stock (in dollars per share)	$ 1.81
Exercise price (in dollars per share)	$ 11.50
Expected term (years)	3 years 9 months 25 days
Volatility	67.38%
Risk-free interest rate	4.09%
Dividend rate	0.00%

FAIR VALUE MEASUREMENT - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	$ 295,816	$ 480,931
Restricted cash	119,883	55,178
Total financial asset	415,699	536,109
Warrant liability	184	1,105
Total financial liability	184	1,105
Quoted Prices in Active Market for Identical Assets (Level 1)
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	295,816	480,931
Restricted cash	119,883	55,178
Total financial asset	415,699	536,109
Warrant liability	0	0
Total financial liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Total financial asset	0	0
Warrant liability	0	0
Total financial liability	0	0
Significant Unobservable Inputs (Level 3)
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Total financial asset	0	0
Warrant liability	184	1,105
Total financial liability	$ 184	$ 1,105

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Level 3 Convertible Notes [Roll Forward]
Balance as of December 31, 2020				$ 0
Issuance of convertible notes				57,500
Loss on changes in fair value of convertible notes	$ 0	$ 3,018	$ 0	9,861
Conversion as of Merger				(67,361)
Balance as of September 30, 2021		$ 0		$ 0

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Level 3 Warrant Liability [Roll Forward]
Balance at the beginning of the period	$ 1,105	$ 0
Assumed warrant liability upon Merger	0	3,574
Changes in fair value	(921)	(1,113)
Balance at end of the period	$ 184	$ 2,461

LEASES - Narrative (Details) $ in Thousands	3 Months Ended	9 Months Ended
LEASES - Narrative (Details) $ in Thousands	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)
Leases [Abstract]
Operating lease, cost	$ 743	$ 2,290
Short-term lease, cost	$ 87	$ 296
Operating lease, weighted average remaining lease term	11 years 10 months 24 days	11 years 10 months 24 days
Operating lease, weighted average discount rate, percent	4.90%	4.90%

LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Leases [Abstract]
Cash payments for operating leases	$ 2,330
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 452

LEASES - Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jan. 01, 2022
Leases [Abstract]
Three months period ending December 31, 2022	$ 709
2023	2,480
2024	1,870
2025	1,391
2026	1,369
2027	1,369
Thereafter	11,064
Total future lease payments	20,252
Less: Imputed interest	(4,820)
Present value of operating lease liabilities	$ 15,432	$ 18,776

SHARE-BASED PAYMENT - Narrative (Details) $ / shares in Units, $ in Thousands						3 Months Ended	9 Months Ended		14 Months Ended
	Jul. 07, 2022 $ / shares shares	Jun. 27, 2022 shares	Jun. 07, 2022 employee shares	Apr. 14, 2022 USD ($) executiveOfficer shares	Jul. 21, 2021	Sep. 30, 2022 USD ($) shares	Sep. 30, 2022 USD ($) shares	Sep. 30, 2021 shares	Sep. 30, 2022 shares	Dec. 31, 2021 shares	Jul. 23, 2021	Dec. 31, 2020 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan expire date					10 years
Exchange ratio											160.3
Reserves percentage					5.00%
Transition services initial term period				18 months
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number (in shares) \| shares						24,300,735	24,300,735	33,551,747	24,300,735	33,503,657		34,737,967
Share-based compensation arrangement by share-based payment award, equity instruments other than options, aggregate intrinsic value, nonvested				$ 4,897
Compensation expense				$ 16,778
Number of executive officer \| executiveOfficer				2
Number of employees \| employee			2
Stock option							$ 103,243
Weighted-average period							1 year 10 months 24 days
Aggregate intrinsic value							$ 0
Equity-based compensation costs							15,798
Compensation cost							7,213
Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, equity instruments other than options, vested in period (in shares) \| shares		20,023,699		2,860,713
Stock-based compensation expense						$ 4,367	29,481
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense						14,081	46,043
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense						345	$ 1,048
Number of options, grant (in shares) \| shares							1,239,854	197,940
Granted (in shares) \| shares									693,232
Performance Based Restricted Stock Unit (PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense						$ 621	$ 1,653
Granted (in shares) \| shares									1,274,222
Terminated Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number (in shares) \| shares				1,122,100
Employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options, grant (in shares) \| shares	500,000		600,000	1,800,000
Share-based compensation arrangement by share-based payment award, options, grants in period, grant date intrinsic value (in dollars per share) \| $ / shares	$ 2.42

SHARE-BASED PAYMENT - Schedule of Stock Option Activity Plan (Details) - $ / shares		9 Months Ended
	Jun. 27, 2022	Sep. 30, 2022
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 years
Volatility rate, minimum		56.16%
Volatility rate, maximum		57.84%
Risk-free interest rate, minimum		2.79%
Risk-free interest rate, maximum		3.02%
Expected dividend yields		0.00%
Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility rate, minimum	50.93%
Volatility rate, maximum	73.89%
Risk-free interest rate, minimum	1.15%
Risk-free interest rate, maximum	3.05%
Expected dividend yields	0.00%
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		2 years 8 months 4 days
Volatility		59.50%
Risk-free interest rate		2.72%
Expected dividend yields		0.00%
Minimum \| Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)		$ 2.42
Weighted average fair value of options modified (in dollars per share)		1.33
Minimum \| Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	25 days
Maximum \| Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)		5.69
Weighted average fair value of options modified (in dollars per share)		$ 3.19
Maximum \| Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	2 years 25 days

SHARE-BASED PAYMENT - Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM (Details) - $ / shares	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Number of Shares
Number of shares, outstanding at beginning (in shares)	33,503,657	34,737,967	34,737,967
Number of shares, granted (in shares)	2,900,000
Number of shares, vested (in shares)	(11,875,830)
Number of shares, forfeited (in shares)	(227,092)	(1,186,220)
Number of shares, outstanding at ending (in shares)	24,300,735	33,551,747	33,503,657	34,737,967
Number of shares, expected to vest and exercisable (in shares)	24,300,735	33,551,747
Weighted Average Exercise Price (US$)
Weighted average exercise price, outstanding at beginning (in dollars per share)	$ 6.19	$ 6.19	$ 6.19
Weighted average exercise price, granted (in dollars per share)	4.81
Weighted average exercise price, vested (in dollars per share)	6.20
Weighted average exercise price, forfeited (in dollars per share)	6.28	6.28
Weighted average exercise price, outstanding at ending (in dollars per share)	6.02	6.19	6.19	$ 6.19
Weighted average exercise price, expected to vest and exercisable (in dollars per share)	6.02	6.19
Weighted Average Grant Date Fair Value (US$)
Weighted average grant date fair value, outstanding at beginning (in dollars per share)	4.95	2.92	2.92
Weighted average grant date fair value, forfeited (in dollars per share)	4.86	3.13
Weighted average grant date fair value, granted (in dollars per share)	2.69
Weighted average grant date fair value, vested (in dollars per share)	5.00
Weighted average grant date fair value, outstanding at ending (in dollars per share)	4.70	4.95	$ 4.95	$ 2.92
Weighted average grant date fair value, expected to vest and exercisable (in dollars per share)	$ 4.70	$ 4.95
Weighted Average Remaining Contractual Life
Weighted average remaining contractual, outstanding at beginning			7 years 10 months 24 days	9 years
Weighted average remaining contractual, forfeited
Weighted average remaining contractual life, outstanding at ending	7 years	8 years 2 months 12 days
Weighted average remaining contractual life, expected to vest and exercisable	7 years	8 years 2 months 12 days

SHARE-BASED PAYMENT - Schedule Non-vested Shares Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Number of Non-Vested Shares
Number of non-vested shares, forfeited (in shares)	(58,126)
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	$ 7.47
Capped Non-vested Shares Units
Number of Non-Vested Shares
Number of non-vested shares, outstanding (in shares)	13,444,469	23,027,399	23,027,399	23,027,399
Number of non-vested shares, vested (in shares)	(9,582,930)
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, outstanding (in dollars per share)	$ 2.38	$ 8.74	$ 8.74	$ 0.93
Weighted average grant date fair value per share, non-vested shares, vested (in dollars per share)	$ 4.37
Restricted Stock Units (RSUs)
Number of Non-Vested Shares
Number of non-vested shares, outstanding (in shares)	1,766,173	191,783	671,441	0
Number of non-vested shares, grant (in shares)	1,239,854	197,940
Number of non-vested shares, vested (in shares)	(86,996)	(6,157)
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, outstanding (in dollars per share)	$ 6.33	$ 9.63	$ 9.08	$ 0
Weighted average grant date fair value per share, non-vested shares, grant (in dollars per share)	4.93	9.60
Weighted average grant date fair value per share, non-vested shares, vested (in dollars per share)	$ 6.96	$ 8.52

SHARE-BASED PAYMENT - Schedule of Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Share-based Payment Arrangement [Abstract]
Cost of revenues	$ 1,964	$ 5,780
General and administrative expenses	12,834	55,528
Research and development expenses	3,193	10,981
Selling and marketing expenses	1,284	5,533
Construction in process	139	403
Total	$ 19,414	$ 78,225

RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of Relationship with the Group (Details)	9 Months Ended
	Sep. 30, 2022
Ochem Chemical Co., Ltd (“Ochem”)
Related Party Balances and Transactions (Details) - Schedule of relationship with the group [Line Items]
Relationship	Controlled by CEO
Ochemate Material Technologies Co., Ltd (“Ochemate”)
Related Party Balances and Transactions (Details) - Schedule of relationship with the group [Line Items]
Relationship	Controlled by CEO

RELATED PARTY BALANCES AND TRANSACTIONS - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Related Party Transactions [Abstract]
Raw material sold to Ochem	$ 0	$ 113	$ 0	$ 406

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

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+ Details

RELATED PARTY BALANCES AND TRANSACTIONS - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transactions [Abstract]
Loans from related parties, accumulative amount	$ 0	$ 8,426
Outstanding balance due from related party	$ 0		$ 85

NET LOSS PER SHARE - Schedule of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Net loss attributable to common stock shareholders	$ (36,544)	$ (120,003)	$ (124,502)	$ (187,464)
Denominator:
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	305,977,372	243,861,780	301,821,464	147,836,650
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	305,977,372	243,861,780	301,821,464	147,836,650
Basic net loss per share (in dollars per share)	$ (0.12)	$ (0.49)	$ (0.41)	$ (1.27)
Diluted net loss per share (in dollars per share)	$ (0.12)	$ (0.49)	$ (0.41)	$ (1.27)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

NET LOSS PER SHARE- Schedule of Shares Outstanding Were Excluded from the Calculation of Diluted Net Loss Per Ordinary Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net Loss Per Share [Line Items]
Shares issuable upon exercise of stock options (in shares)	27,032,668	33,641,132	31,529,919	33,869,470
Shares issuable upon vesting of non-vested shares (in shares)	1,815,043	98,094	1,282,482	33,093
Shares issuable upon vesting of Capped non-vested shares (in shares)	15,017,783	0	5,280,978	0
Shares issuable upon exercise of warrants (in shares)	28,437,000	21,327,750	28,437,000	7,187,374
Shares issuable upon conversion of non-controlling interests of a subsidiary (in shares)	0	4,125,761	0	12,829,289
Shares issuable upon vesting of Earn-out shares (in shares)	19,999,988	14,999,991	19,999,988	5,054,942
Shares issuable that may be subject to cancellation (in shares)	1,687,500	1,265,625	1,687,500	426,511
Shares issuable upon conversion of Series B2 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	7,153,219	0	8,076,300
Shares issuable upon conversion of Series C1 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	6,398,475	0	19,896,422
Shares issuable upon conversion of Series C2 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	4,842,260	0	15,057,284
Shares issuable upon conversion of Series D1 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	5,335,362	0	16,590,614
Shares issuable upon conversion of Series D2 Preferred
Net Loss Per Share [Line Items]
Shares issuable upon conversion of Series Preferred	0	1,606,919	0	4,996,808

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Feb. 05, 2018	Sep. 30, 2022
Commitments and Contingencies (Details) [Line Items]
Ordinary shares (in shares)	2,600
Shares own during business combination (in shares)	416,780
Other equity remedies	$ 1,000
Capital Commitments
Commitments and Contingencies (Details) [Line Items]
Capital commitments		$ 260,513

SUBSEQUENT EVENTS (Details) $ in Millions	Oct. 31, 2022 USD ($)
U.S. Department Of Energy Grant Funding \| Subsequent Event
Subsequent Event [Line Items]
Grants receivable	$ 200