0001760689-23-000020 | 10-Q | XBRL Viewer

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UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 200,305	$ 231,420
Restricted cash, current	60,164	70,732
Short-term investments	25,313	25,070
Accounts receivable (net of allowance for credit losses of $4,407 and $3,270 as of December 31, 2022 and March 31, 2023, respectively)	88,911	119,304
Notes receivable	21,202	2,196
Inventories, net	87,669	84,252
Prepaid expenses and other current assets	13,472	12,093
Total Current Assets	497,036	545,067
Restricted cash, non-current	11	465
Property, plant and equipment, net	443,051	335,140
Land use rights, net	12,618	12,639
Acquired intangible assets, net	3,691	1,636
Operating lease right-of-use assets	18,461	16,368
Other non-current assets	29,113	73,642
Total Assets	1,003,981	984,957
Current liabilities:
Accounts payable	41,243	44,985
Notes payable	67,804	68,441
Accrued expenses and other current liabilities	93,147	66,720
Advance from customers	53,059	54,207
Short-term bank borrowings	21,842	17,398
Income tax payables	658	658
Total Current Liabilities	277,753	252,409
Long-term bonds payable	43,888	43,888
Long-term bank borrowings	29,122	28,997
Warrant liability	109	126
Share-based compensation liability	138	131
Operating lease liabilities	15,825	14,347
Other non-current liabilities	31,317	32,082
Total Liabilities	398,152	371,980
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, 2022 and March 31, 2023; 309,316,011 and 309,427,448 shares issued, and 307,628,511 and 307,739,948 shares outstanding as of December 31, 2022 and March 31, 2023)	31	31
Additional paid-in capital	1,434,221	1,416,160
Statutory reserves	6,032	6,032
Accumulated deficit	(820,746)	(791,165)
Accumulated other comprehensive loss	(15,861)	(18,081)
Total Microvast Holding, Inc. shareholders’ equity	603,677	612,977
Noncontrolling interests	2,152	0
Total Equity	605,829	612,977
Total Liabilities and Equity	$ 1,003,981	$ 984,957

ACQUIRED INTANGIBLE ASSETS, NET (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets


	December 31, 2022		March 31, 2023
Cost of acquired intangible assets	$	3,493	$	5,679
Less: accumulated amortization	(1,857)		(1,988)
Acquired intangible assets, net	$	1,636	$	3,691

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The annual amortization expense for each of the five succeeding fiscal years and thereafter are as follows:


Nine months period ending December 31, 2023	$	388
2024	512
2025	508
2026	506
2027	499
2028	400
Thereafter	878
Total	$	3,691

LEASES (Tables)

3 Months Ended

Mar. 31, 2023

Leases [Abstract]

Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information of the leases were as follows:


	Three months ended March 31, 2023
Cash payments for operating leases	$	887
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,493

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 March 31, 2023:


	As of March 31, 2023
Nine months period ending December 31, 2023	$	2,602
2024	$	2,527
2025	$	2,027
2026	$	1,770
2027	$	1,640
2028	$	1,640
Thereafter	$	11,614
Total future lease payments	$	23,820
Less: Imputed interest	$	(5,433)
Present value of operating lease liabilities	$	18,387

INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Work in process	$ 44,020	$ 48,747
Raw materials	31,604	29,331
Finished goods	12,045	6,174
Total	$ 87,669	$ 84,252

ACCOUNTS RECEIVABLE - Schedule of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of the period	$ 4,407	$ 5,005
Reversal of expenses	(1,094)	(545)
Write off	(66)	0
Exchange difference	23	28
Balance at end of the period	$ 3,270	5,354
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Balance at end of the period		$ 866

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
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Shares issuable upon exercise of stock options (in shares)	36,054,182	33,482,818
Shares issuable upon vesting of non-vested shares (in shares)	3,070,520	673,534
Shares issuable upon vesting of Capped non-vested shares (in shares)	13,349,144	0
Shares issuable upon exercise of warrants (in shares)	28,437,000	28,437,000
Shares issuable upon vesting of Earn-out shares (in shares)	19,999,988	19,999,988
Shares issuable that may be subject to cancellation (in shares)	1,687,500	1,687,500

Cover - shares	3 Months Ended
Cover - shares	Mar. 31, 2023	May 05, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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 300
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	Accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		309,427,448
Entity Central Index Key	0001760689
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
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 STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 46,973	$ 36,668
Cost of revenues	(42,115)	(36,655)
Gross profit	4,858	13
Operating expenses:
General and administrative expenses	(20,385)	(26,101)
Research and development expenses	(10,861)	(11,309)
Selling and marketing expenses	(4,988)	(5,998)
Total operating expenses	(36,234)	(43,408)
Subsidy income	77	137
Loss from operations	(31,299)	(43,258)
Other income and expenses:
Interest income	1,381	314
Interest expense	(459)	(796)
Changes in fair value of warrant liability	17	(435)
Other income, net	789	399
Loss before provision for income taxes	(29,571)	(43,776)
Income tax expense	0	0
Net loss	(29,571)	(43,776)
Less: net income attributable to noncontrolling interests	10	0
Net loss attributable to Microvast Holdings, Inc.'s shareholders	$ (29,581)	$ (43,776)
Net loss per common share
Basic net loss per share (in dollars per share)	$ (0.10)	$ (0.15)
Diluted net loss per share (in dollars per share)	$ (0.10)	$ (0.15)
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)	307,714,841	298,843,016
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	307,714,841	298,843,016

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Commitments and Contingencies (Details) [Line Items]
Short-term investments	$ 25,313	$ 25,070
Property, plant and equipment, net	443,051	$ 335,140
Bank Acceptance Note
Commitments and Contingencies (Details) [Line Items]
Receivables from customers	9,900
Property, plant and equipment, net	32,199
Inventories
Commitments and Contingencies (Details) [Line Items]
Purchase obligation	47,093
Capital Commitments
Commitments and Contingencies (Details) [Line Items]
Capital commitments	$ 173,905

BANK BORROWINGS - Schedule of Bank Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Bank Borrowing [Roll Forward]
Beginning balance			$ 46,395	$ 13,301
Proceeds from bank borrowings	$ 4,384	$ 0
Exchange difference	185	34
Ending balance	50,964	$ 13,335
Current	21,842		17,398
Non-current	29,122		28,997
Total	$ 50,964		$ 46,395

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

LEASES - Summary of the Annual Undiscounted Cash Flows for Lease Liabilities Maturity Analysis (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Nine months period ending December 31, 2023	$ 2,602
2024	2,527
2025	2,027
2026	1,770
2027	1,640
2028	1,640
Thereafter	11,614
Total future lease payments	23,820
Less: Imputed interest	(5,433)
Present value of operating lease liabilities	$ 18,387

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

Accrued Liabilities and Other Liabilities [Abstract]

Schedule of Accrued Expenses and Other Current Liabilities


	December 31, 2022		March 31, 2023
Product warranty, current	$	13,044	$	11,279
Payables for purchase of property, plant and equipment	29,183		58,121
Other current liabilities	8,608		7,804
Accrued payroll and welfare	4,716		4,518
Accrued expenses	2,641		2,801
Interest payable	298		395
Other tax payable	6,296		5,667
Operating lease liabilities, current	1,934		2,562
Total	$	66,720	$	93,147

BANK BORROWINGS - Narrative (Details) $ in Thousands, ¥ in Millions		3 Months Ended
	Sep. 27, 2022 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Sep. 27, 2022 CNY (¥)
Debt Instrument [Line Items]
Interest costs capitalized		$ 524	$ 0
Syndicated Loan Agreement
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	$ 111,000			¥ 800
Proceeds from lines of credit		$ 43,683
Syndicated Loan Agreement \| National Interbank Funding Center Rate
Debt Instrument [Line Items]
Debt instrument, basis spread on variable rate	1.15%
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%

SIGNIFICANT ACCOUNTING POLICIES - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Significant Accounting Policies [Line Items]
Revenue	$ 46,973	$ 36,668
People’s Republic of China ("PRC")
Significant Accounting Policies [Line Items]
Revenue	32,612	19,838
Other Asia & Pacific countries
Significant Accounting Policies [Line Items]
Revenue	3,149	13,404
Asia & Pacific
Significant Accounting Policies [Line Items]
Revenue	35,761	33,242
Europe
Significant Accounting Policies [Line Items]
Revenue	10,185	2,751
U.S.
Significant Accounting Policies [Line Items]
Revenue	$ 1,027	$ 675

- 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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

LEASES - Narrative (Details) $ in Thousands	3 Months Ended
LEASES - Narrative (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Leases [Abstract]
Operating lease, cost	$ 880
Short-term lease, cost	$ 71
Operating lease, weighted average remaining lease term	11 years 2 months 12 days
Operating lease, weighted average discount rate, percent	4.90%

BANK BORROWINGS

3 Months Ended

Mar. 31, 2023

Bank Borrowings [Abstract]

BANK BORROWINGS

BANK BORROWINGSOn 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 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 the consent of the lender, and certain customary events of default.

NOTE 8. BANK BORROWINGS-continued

As of March 31, 2023, the Group had outstanding borrowings of $43,683 under the 2022 Facility Agreement.


Repayment Date						Repayment Amount
June 10, 2023						$4,368 (RMB30 million)
December 10, 2023						$10,193 (RMB70 million)
June 10, 2024						$14,561 (RMB100 million)
December 10, 2024						$14,561 (RMB100 million)

The amount of capitalized interest expenses, which was recorded in construction in progress and property, plant and equipment, was $0 and $524 for the three months ended March 31, 2022 and 2023, respectively.

The Group has also entered into short-term loan agreements and bank facilities with certain Chinese banks. The original terms of these loans are with a maximum maturity of 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 March 31,
	2022		2023
Beginning balance	$	13,301	$	46,395
Proceeds from bank borrowings	—		4,384
Exchange difference	34		185
Ending balance	$	13,335	$	50,964


Balance of bank borrowings includes:	December 31, 2022		March 31, 2023
Current	$	17,398	$	21,842
Non-current	28,997		29,122
Total	$	46,395	$	50,964

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, 2022 and March 31, 2023 are as follows:


	December 31, 2022		March 31, 2023
Buildings	$	27,245	$	26,926
Land use rights	12,639		12,618
Total	$	39,884	$	39,544

WARRANTS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Jul. 23, 2021	Mar. 31, 2023	Mar. 31, 2022
Warrants (Details) [Line Items]
Shares issued (in shares)	27,600,000
Class of warrant or right, exercisable period	30 days
Warrant term	5 years
Changes in fair value of warrant liability		$ (17)	$ 435
Public Warrants
Warrants (Details) [Line Items]
Warrant redemption price (in dollars per share)	$ 0.01
Class of warrant or right, notice of redemption, minimum period	30 days
Stock price minimum to redeem warrants (in dollars per share)	$ 18.00
Warrant redemption, consecutive trading days	20 days
Warrant redemption, trading 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
Exercise price (in dollars per share)	$ 11.50
Warrant term	5 years
Changes in fair value of warrant liability		$ 17

LEASES - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Leases [Abstract]
Cash payments for operating leases	$ 887
Right-of-use assets obtained in exchange for new operating lease liabilities	$ 2,493

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Mar. 31, 2023
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, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2023, 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 months ended March 31, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2023. The financial information as of December 31, 2022 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2022. There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2022. 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.
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 to provide the battery 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 March 31, 2022 and 2023, the Group recognized $479 and $1,788 of revenue previously included in advance from customers as of January 1, 2022 and January 1, 2023, 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 a 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 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. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur.
Operating leases	Operating leases As of March 31, 2023, the Company recorded operating lease right-of-use (ROU) assets of $18,461 and operating lease liabilities of $18,387, including current portion in the amount of $2,562, which was recorded under accrued expenses and other current liabilities on the balance sheet. 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 machines 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 11 – 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 11 – Warrants).
Recent accounting pronouncements adopted and not yet adopted	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 these loans are with a maximum maturity of 12 months and the interest rates range from 4.50% to 4.75% per annum
Public Warrants	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.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation From time to time, the Group may become involved in litigation, claims, and proceedings. The Group evaluates the status of each legal matter and assesses the potential financial exposure. If the potential loss from any legal proceedings or litigation is considered probable and the amount can be reasonably estimated, the Group accrues a liability for the estimated loss. Significant judgment is required to determine the probability of a loss and whether the amount of the loss is reasonably estimated. As of December 31, 2022 and March 31, 2023, based on the information currently available, the Group believes that the loss contingencies that may arise as a result of currently pending legal proceedings are not reasonably likely to have a material adverse effect on the Group’s business, results of operations, financial condition, and cash flows. Capital commitments Capital commitments for construction of property and purchase of property, plant and equipment were $173,905 as of March 31, 2023, which is mainly for the construction of lithium battery production lines. Purchase Commitments Purchase commitments for non-cancelable contractual obligations primarily related to purchases of inventory were $47,093 as of March 31, 2023. Letters of credit The Company may be required to provide letter of credit as guarantees to customers upon contract signing. The letter of credit generally has an expiration date within one year. As of March 31, 2023, the Company obtained a standby letter of credit from a bank with $25,313 of short-term investment as collateral. Pledged assets The Group may pledge certain assets to banks to secure the issuance of bank acceptance notes for the Group. As of March 31, 2023, notes receivable from customers in the amount of $9,900, together with certain of our machinery and equipment with a carrying value of $32,199 has been pledged to secure the issuance of such notes.

ACCOUNTS RECEIVABLE- Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Receivables [Abstract]
Accounts receivable	$ 92,181	$ 123,711
Allowance for credit losses	(3,270)	(4,407)
Accounts receivable, net	$ 88,911	$ 119,304

OTHER NON-CURRENT LIABILITIES - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Liabilities, Noncurrent [Abstract]
Product warranty - non-current	$ 28,331	$ 29,016
Deferred subsidy income- non-current	2,986	3,066
Total	$ 31,317	$ 32,082

BONDS PAYABLE

3 Months Ended

Mar. 31, 2023

Bonds Payable [Abstract]

BONDS PAYABLE


	December 31, 2022		March 31, 2023
Long–term bonds payable
Huzhou Saiyuan	$	43,888	$	43,888
Total	$	43,888	$	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 these convertible bonds.

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 bonds into equity interests of MPS within 60 days after the maturity date. If Huzhou Saiyuan decides to convert the bonds into equity interests of MPS, the equity interests pledged would be released and the convertible bonds would be converted into equity interest of MPS based on an entity value of MPS of $950,000.

In September 2020 and 2022, MPS entered into two supplement agreements with Huzhou Saiyuan, respectively, 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. The Company has complied in full with the amended repayment schedule and accordingly, as of March 31, 2023, the subscription and outstanding balance of the convertible bonds was $43,888 (RMB300 million).

OTHER NON-CURRENT LIABILITIES

3 Months Ended

Mar. 31, 2023

Other Liabilities, Noncurrent [Abstract]

OTHER NON-CURRENT LIABILITIES


	December 31, 2022		March 31, 2023
Product warranty - non-current	$	29,016	$	28,331
Deferred subsidy income- non-current	3,066		2,986
Total	$	32,082	$	31,317

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities
Net loss	$ (29,571)	$ (43,776)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on disposal of property, plant and equipment	824	12
Depreciation of property, plant and equipment	4,892	5,310
Amortization of land use right and intangible assets	205	143
Noncash lease expenses	658	557
Share-based compensation	17,929	28,130
Changes in fair value of warrant liability	(17)	435
Reversal of credit losses	(1,094)	(545)
Provision for obsolete inventories	0	471
Impairment loss from property, plant and equipment	0	6
Product warranty	2,530	2,685
Changes in operating assets and liabilities:
Notes receivable	(21,340)	(13,468)
Accounts receivable	32,293	8,746
Inventories	(7,039)	(4,878)
Prepaid expenses and other current assets	(857)	(2,586)
Amounts due from/to related parties	0	85
Operating lease right-of-use assets	(2,493)	(18,945)
Other non-current assets	288	(51)
Notes payable	(936)	9,391
Accounts payable	(3,956)	(8,605)
Advance from customers	(1,179)	2,063
Accrued expenses and other liabilities	(3,434)	(6,165)
Operating lease liabilities	1,239	16,146
Other non-current liabilities	(108)	(75)
Net cash used in operating activities	(11,166)	(24,914)
Cash flows from investing activities
Purchases of property, plant and equipment	(35,922)	(41,061)
Purchase of short-term investments	(243)	0
Proceeds on disposal of property, plant and equipment	340	1
Net cash used in investing activities	(35,825)	(41,060)
Cash flows from financing activities
Proceeds from borrowings	4,384	0
Net cash generated from financing activities	4,384	0
Effect of exchange rate changes	470	598
Decrease in cash, cash equivalents and restricted cash	(42,137)	(65,376)
Cash, cash equivalents and restricted cash at beginning of the period	302,617	536,109
Cash, cash equivalents and restricted cash at end of the period	260,480	470,733
Cash and cash equivalents	200,305	416,165
Restricted cash	60,175	54,568
Total cash, cash equivalents and restricted cash	260,480	470,733
Non-cash investing and financing activities
Payable for purchase of property, plant and equipment	$ 58,121	$ 20,313

PRODUCT WARRANTY (Tables)

3 Months Ended

Mar. 31, 2023

Product Warranties Disclosures [Abstract]

Schedule of Movement of Product Warranty

Movement of product warranty was as follows:


	Three Months Ended March 31,
	2022		2023
Balance at beginning of the period	$	58,458	$	42,060
Provided during the period	2,685		2,530
Utilized during the period	(9,712)		(5,172)
Exchange difference	—		192
Balance at end of the period	$	51,431	$	39,610

Schedule of Warranty Cost


	December 31, 2022		March 31, 2023
Product warranty – current	$	13,044	$	11,279
Product warranty – non-current	29,016		28,331
Total	$	42,060	$	39,610

WARRANTS - Schedule of Under the Binomial-Lattice Model (“BLM”) that Assumes Optimal Exercise of the Company’s Redemption Option (Details) - Warrants	Mar. 31, 2023 $ / shares
Warrants [Line Items]
Market price of public stock (in dollars per share)	$ 1.24
Exercise price (in dollars per share)	$ 11.50
Expected term (years)	3 years 3 months 25 days
Volatility	77.47%
Risk-free interest rate	3.69%
Dividend rate	0.00%

BONDS PAYABLE (Tables)

3 Months Ended

Mar. 31, 2023

Bonds Payable [Abstract]

Schedule of Bonds Payable


	December 31, 2022		March 31, 2023
Long–term bonds payable
Huzhou Saiyuan	$	43,888	$	43,888
Total	$	43,888	$	43,888

SHARE-BASED PAYMENT - Narrative (Details) $ in Thousands			3 Months Ended		20 Months Ended
SHARE-BASED PAYMENT - Narrative (Details) $ in Thousands	Jun. 27, 2022 shares	Jul. 21, 2021	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2023 USD ($) 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%
Stock option			$ 75,188
Weighted-average period			1 year 4 months 24 days
Aggregate intrinsic value			$ 0		$ 0
Equity-based compensation costs			9,205
Compensation cost			9,252
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			13,659	$ 13,630
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
Stock-based compensation expense			3,244	13,959
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			447	344
Granted (in shares) \| shares					2,182,222
Performance Based Restricted Stock Unit (PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense			$ 719	$ 359
Granted (in shares) \| shares					2,680,372

SHARE-BASED PAYMENT - Schedule of Stock Option Activity Plan (Details) - $ / shares		3 Months Ended
	Jun. 27, 2022	Mar. 31, 2023
Share Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 years
Volatility rate, maximum		55.59%
Risk-free interest rate, minimum		3.48%
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 11 months 1 day
Volatility		61.89%
Risk-free interest rate		3.83%
Expected dividend yields		0.00%
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)		$ 1.21
Weighted average fair value of options modified (in dollars per share)		$ 0.67
Maximum \| Capped Non-vested Shares Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)	2 years 25 days

FAIR VALUE MEASUREMENT (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

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

As of December 31, 2022 and March 31, 2023, 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, 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	$	231,420	—	—	$	231,420
Restricted cash	71,197		—	—	71,197
Total financial asset	$	302,617	—	—	$	302,617
Warrant liability	$	—	—	126	$	126
Total financial liability	$	—	—	126	$	126

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


	Fair Value Measurement as of March 31, 2023
(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	$	200,305	—	—	$	200,305
Restricted cash	$	60,175	—	—	$	60,175
Total financial asset	$	260,480	—	—	$	260,480
Warrant liability	$	—	—	109	$	109
Total financial liability	$	—	—	109	$	109

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 three months ended March 31, 2022 and 2023:


(In thousands)	Three Months Ended March 31,
	2022		2023
Balance at the beginning of the period	1,105		$	126
Changes in fair value	435		(17)
Balance at end of the period	$	1,540	$	109

ACCOUNTS RECEIVABLE

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

ACCOUNTS RECEIVABLE

Accounts receivable consisted of the following:


	December 31, 2022		March 31, 2023
Accounts receivable	$	123,711	$	92,181
Allowance for credit losses	(4,407)		(3,270)
Accounts receivable, net	$	119,304	$	88,911

Movement of allowance for credit losses was as follows:


	Three Months Ended March 31,
	2022		2023
Balance at beginning of the period	$	5,005	$	4,407
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)	866		—
Reversal of expenses	(545)		(1,094)
Write off	—		(66)
Exchange difference	28		23
Balance at end of the period	$	5,354	$	3,270

PRODUCT WARRANTY - Schedule of Movement of Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of the period			$ 42,060	$ 58,458
Provided during the period	$ 2,530	$ 2,685
Utilized during the period	(5,172)	(9,712)
Exchange difference	192	0
Balance at end of the period	$ 39,610	$ 51,431

BANK BORROWINGS - Schedule of Banking Facilities and Aggregate Carrying Amount (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Bank Borrowings [Abstract]
Buildings	$ 26,926	$ 27,245
Land use rights	12,618	12,639
Total	$ 39,544	$ 39,884

ACQUIRED INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 129	$ 61
Impairment of intangible assets (excluding goodwill)	$ 0	$ 0
Microvast Precision Works Co
Finite-Lived Intangible Assets [Line Items]
Noncontrolling interest, ownership percentage by parent	70.00%
Third Party Investor
Finite-Lived Intangible Assets [Line Items]
Noncontrolling interest, ownership percentage by noncontrolling owners	30.00%
Microvast Precision Works Co
Finite-Lived Intangible Assets [Line Items]
Payments to acquire interest in subsidiaries and affiliates	$ 5,072
MPW \| Patents \| Third Party Investor
Finite-Lived Intangible Assets [Line Items]
Finite-lived patents, gross	$ 2,174

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (29,571)	$ (43,776)
Foreign currency translation adjustment	2,188	986
Comprehensive loss	(27,383)	(42,790)
Comprehensive income attributable to non-controlling interests	(22)	0
Total comprehensive loss attributable to Microvast Holding, Inc.'s shareholders	$ (27,361)	$ (42,790)

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

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

+ References

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+ Details

SHARE-BASED PAYMENT

3 Months Ended

Mar. 31, 2023

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.

Stock options

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


	Three Months Ended March 31, 2023
Exercise price	$	1.21
Expected terms (years)	6.00
Volatility	55.59		%
Risk-free interest rate	3.48		%
Expected dividend yields	0.00		%
Fair value of options granted	$	0.67

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.

Stock options-continued

Stock options activity for the three months ended March 31, 2022 and 2023 was as follows:


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, 2021	33,503,657	6.19	4.95	7.9
Forfeited	(72,135)	6.28	4.92
Outstanding as of March 31, 2022	33,431,522	6.18	4.98	7.7
Expected to vest and exercisable as of March 31, 2022	33,431,522	6.18	4.98	7.7
Outstanding as of December 31, 2022	36,091,071	6.08	4.80	6.8
Grant	240,000	1.25	0.67
Forfeited	(128,239)	6.28	4.86
Outstanding as of March 31, 2023	36,202,832	6.05	4.77	6.6
Expected to vest and exercisable as of March 31, 2023	36,202,832	6.05	4.77	6.6
Exercisable as of March 31, 2023	11,779,651	6.19	5.00	6.7

During the three months ended March 31, 2022 and 2023, the Company recorded share-based compensation expense of $13,630 and $13,659 related to the option awards.

The total unrecognized equity-based compensation costs as of March 31, 2023 related to the stock options was $75,188, which is expected to be recognized over a weighted-average period of 1.4 years. The aggregate intrinsic value of the stock options as of March 31, 2023 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.

Capped Non-vested share units-continued

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.

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 months ended March 31, 2022 and 2023, the Company recorded share-based compensation expense of $13,959 and $3,244, related to these CRSUs awards.

Activity on the CRSUs for the three months ended March 31, 2022 and 2023 was as follows:


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (US$)
Outstanding as of December 31, 2021	23,027,399	8.74	1
Outstanding as of March 31, 2022	23,027,399	8.74
Outstanding as of December 31, 2022	13,444,469	2.38
Outstanding as of March 31, 2023	13,444,469	2.38

The total unrecognized equity-based compensation costs as of March 31, 2023 related to the CRSUs was $9,205.

Restricted Stock Units

Following the Business Combination, the Company granted 2,182,222 restricted stock units (“RSUs”) and 2,680,372 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.

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 $447 related to these RSUs and $719 related to these PSUs during the three months ended March 31, 2023, respectively. During the three months ended March 31, 2022, the Company recorded share-based compensation expense of $344 related to these RSUs and $359 related to these PSUs, respectively.

The following assumptions were used for the 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:


	Three months ended March 31, 2023
Expected term (years)	2.92
Volatility	61.89	%
Risk-free interest rate	3.83	%
Expected dividend yields	0.00	%

The 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.

Restricted Stock Units-continued

The non-vested shares activity for the three months ended March 31, 2022 and 2023 was as follows:


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of December 31, 2021	671,441	9.08
Grant	38,566	6.78
Vested	(8,124)	8.52
Forfeited	(13,196)	8.87
Outstanding as of March 31, 2022	688,687	8.96
Outstanding as of December 31, 2022	1,222,837	6.92
Grant	2,895,140	1.86
Vested	(111,437)	6.76
Forfeited	(14,904)	5.43
Outstanding as of March 31, 2023	3,991,636	3.26

The total unrecognized equity-based compensation costs as of March 31, 2023 related to the non-vested shares was $9,252.

The following summarizes the classification of share-based compensation:


	Three Months Ended March 31, 2022		Three Months Ended March 31, 2023
Cost of revenues	$	1,934	$	1,504
General and administrative expenses	18,136		12,168
Research and development expenses	5,139		3,014
Selling and marketing expenses	2,921		1,243
Construction in process	162		140
Total	$	28,292	$	18,069

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

3 Months Ended

Mar. 31, 2023

Accrued Liabilities and Other Liabilities [Abstract]

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES


	December 31, 2022		March 31, 2023
Product warranty, current	$	13,044	$	11,279
Payables for purchase of property, plant and equipment	29,183		58,121
Other current liabilities	8,608		7,804
Accrued payroll and welfare	4,716		4,518
Accrued expenses	2,641		2,801
Interest payable	298		395
Other tax payable	6,296		5,667
Operating lease liabilities, current	1,934		2,562
Total	$	66,720	$	93,147

SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2023

Accounting Policies [Abstract]

Disaggregation of Revenue

For the three months ended March 31, 2022 and 2023, the Group derived revenues from geographic regions as follows:


	Three Months Ended March 31,
	2022		2023
People’s Republic of China ("PRC")	$	19,838	$	32,612
Other Asia & Pacific countries	13,404		3,149
Asia & Pacific	33,242		35,761
Europe	2,751		10,185
U.S.	675		1,027
Total	$	36,668	$	46,973

ACQUIRED INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Nine months period ending December 31, 2023	$ 388
2024	512
2025	508
2026	506
2027	499
2028	400
Thereafter	878
Total	$ 3,691	$ 1,636

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ (DEFICIT)/EQUITY - USD ($) $ in Thousands	Total	Total Microvast Holdings, Inc. Shareholders’ Equity	Total Microvast Holdings, Inc. Shareholders’ Equity Cumulative Effect, Period of Adoption, Adjustment	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated deficit Cumulative Effect, Period of Adoption, Adjustment	Accumulated other Comprehensive Income (loss)	Statutory reserves	Noncontrolling Interest
Beginning balance (in shares) at Dec. 31, 2021				298,843,016
Beginning balance at Dec. 31, 2021		$ 686,698	$ (866)	$ 30	$ 1,306,034	$ (632,099)	$ (866)	$ 6,701	$ 6,032
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	$ (43,776)	(43,776)				(43,776)
Issuance of common stock in connection with vesting of restricted stock units and share-based awards (in shares)				8,124
Share-based compensation		14,333			14,333
Foreign currency translation adjustments		986						986
Ending balance (in shares) at Mar. 31, 2022				298,851,140
Ending balance at Mar. 31, 2022		657,375		$ 30	1,320,367	(676,741)		7,687	6,032
Beginning balance (in shares) at Dec. 31, 2022				307,628,511
Beginning balance at Dec. 31, 2022	612,977	612,977		$ 31	1,416,160	(791,165)		(18,081)	6,032	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(29,571)	(29,581)				(29,581)				10
Capital contribution from non-controlling interests holder	2,174									2,174
Issuance of common stock in connection with vesting of restricted stock units and share-based awards (in shares)				111,437
Share-based compensation	18,061	18,061			18,061
Foreign currency translation adjustments	2,188	2,220						2,220		(32)
Ending balance (in shares) at Mar. 31, 2023				307,739,948
Ending balance at Mar. 31, 2023	$ 605,829	$ 603,677		$ 31	$ 1,434,221	$ (820,746)		$ (15,861)	$ 6,032	$ 2,152

- Definition

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

+ References

+ Details

- 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.

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-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)(3)
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22499-107794

Reference 28: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 65
-Paragraph 15
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=128097895&loc=SL121327923-165333

+ Details

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accrued Liabilities and Other Liabilities [Abstract]
Product warranty, current	$ 11,279	$ 13,044
Payables for purchase of property, plant and equipment	58,121	29,183
Other current liabilities	7,804	8,608
Accrued payroll and welfare	4,518	4,716
Accrued expenses	2,801	2,641
Interest payable	395	298
Other tax payable	5,667	6,296
Operating lease liabilities, current	2,562	1,934
Total	$ 93,147	$ 66,720

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	3 Months Ended
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	Mar. 31, 2023
Accounting Policies [Abstract]
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS	DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Microvast, Inc. was incorporated under the laws of the State of Texas in the United States of America on October 12, 2006 and re-domiciled to the State of Delaware on December 31, 2015. Microvast Inc. and its subsidiaries (collectively, the “Group”) are primarily engaged in developing, manufacturing, and selling electronic power products for electric vehicles and energy storage across the globe. On July 23, 2021 (the “Closing Date”), Microvast, Inc. and Tuscan Holdings Corp.(“Tuscan”) consummated the previously announced merger (the “Merger”), 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 the Merger Agreement, the Merger Sub merged with and into Microvast, Inc., with Microvast, Inc. surviving the Merger. As a result of the Merger, Tuscan was renamed “Microvast Holdings, Inc.” (the “Company”). The Merger was accounted for as a reverse recapitalization as Microvast, Inc. was determined to be the accounting acquirer under Financial Accounting Standards Board’s Accounting Standards Codification Topic 805, Business Combinations (“ASC 805”).

PRODUCT WARRANTY

3 Months Ended

Mar. 31, 2023

Product Warranties Disclosures [Abstract]

PRODUCT WARRANTY

Movement of product warranty was as follows:


	Three Months Ended March 31,
	2022		2023
Balance at beginning of the period	$	58,458	$	42,060
Provided during the period	2,685		2,530
Utilized during the period	(9,712)		(5,172)
Exchange difference	—		192
Balance at end of the period	$	51,431	$	39,610


	December 31, 2022		March 31, 2023
Product warranty – current	$	13,044	$	11,279
Product warranty – non-current	29,016		28,331
Total	$	42,060	$	39,610

SHARE-BASED PAYMENT - Schedule of Classification of Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Cost of revenues	$ 1,504	$ 1,934
General and administrative expenses	12,168	18,136
Research and development expenses	3,014	5,139
Selling and marketing expenses	1,243	2,921
Construction in process	140	162
Total	$ 18,069	$ 28,292

FAIR VALUE MEASUREMENT - Schedule of Reconciliation of the Beginning and Ending Balances for Level 3 Warrant Liability (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Level 3 Warrant Liability [Roll Forward]
Balance at the beginning of the period	$ 126	$ 1,105
Changes in fair value	(17)	435
Balance at end of the period	$ 109	$ 1,540

WARRANTS

3 Months Ended

Mar. 31, 2023

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 months ended March 31, 2023, 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. The Public Warrants are only exercisable for cash, however, if the Company were to not maintain the effectiveness of the registration statement covering the shares of Common Stock issuable upon exercise of the Public Warrants, the Public Warrants would be exercisable on a net-share settlement basis. The Public Warrants will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation.

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 March 31, 2023, resulting in a gain of $17 for the three months ended March 31, 2023, 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:


	March 31, 2023
Market price of public stock	$	1.24
Exercise price	$	11.50
Expected term (years)	3.32
Volatility	77.47		%
Risk-free interest rate	3.69		%
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.

SHARE-BASED PAYMENT - Schedule Non-vested Shares Activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Number of Non-Vested Shares
Number of shares, grant (in shares)	240,000
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, grant (in dollars per share)	$ 1.25
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	$ 4.86	$ 4.92
Capped Non-vested Shares Units
Number of Non-Vested Shares
Number of non-vested shares, outstanding (in shares)	13,444,469	23,027,399
Number of non-vested shares, outstanding at ending balance (in shares)	13,444,469	23,027,399
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, outstanding at beginning (in dollars per share)	$ 2.38	$ 8.74
Weighted average grant date fair value per share, non-vested shares, outstanding at ending (in dollars per share)	$ 2.38	$ 8.74
Restricted Stock Units (RSUs)
Number of Non-Vested Shares
Number of non-vested shares, outstanding (in shares)	1,222,837	671,441
Number of shares, grant (in shares)	2,895,140	38,566
Number of non-vested shares, vested (in shares)	(111,437)	(8,124)
Number of non-vested shares, forfeited (in shares)	(14,904)	(13,196)
Number of non-vested shares, outstanding at ending balance (in shares)	3,991,636	688,687
Weighted Average Grant Date Fair Value Per Share (US$)
Weighted average grant date fair value per share, non-vested shares, outstanding at beginning (in dollars per share)	$ 6.92	$ 9.08
Weighted average grant date fair value per share, non-vested shares, grant (in dollars per share)	1.86	6.78
Weighted average grant date fair value per share, non-vested shares, vested (in dollars per share)	6.76	8.52
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	5.43	8.87
Weighted average grant date fair value per share, non-vested shares, outstanding at ending (in dollars per share)	$ 3.26	$ 8.96

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Allowance for credit losses	$ 3,270	$ 4,407
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)	309,427,448	309,316,011
Common stock, shares outstanding (in shares)	307,739,948	307,628,511

OTHER NON-CURRENT LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2023

Other Liabilities, Noncurrent [Abstract]

Schedule of Other Non-Current Liabilities


	December 31, 2022		March 31, 2023
Product warranty - non-current	$	29,016	$	28,331
Deferred subsidy income- non-current	3,066		2,986
Total	$	32,082	$	31,317

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accounting Policies [Abstract]
Revenue recognized	$ 1,788	$ 479
Operating lease right-of-use assets	18,461		$ 16,368
Present value of operating lease liabilities	18,387
Operating lease liabilities, current	$ 2,562		$ 1,934

INVENTORIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
INVENTORIES - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Mar. 31, 2022
Inventory Disclosure [Abstract]
Provision for obsolete inventories	$ 0	$ 471

ACCOUNTS RECEIVABLE (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consisted of the following:


	December 31, 2022		March 31, 2023
Accounts receivable	$	123,711	$	92,181
Allowance for credit losses	(4,407)		(3,270)
Accounts receivable, net	$	119,304	$	88,911

Schedule of Allowance for Credit Losses

Movement of allowance for credit losses was as follows:


	Three Months Ended March 31,
	2022		2023
Balance at beginning of the period	$	5,005	$	4,407
Cumulative-effect adjustment upon adoption of ASU2016-13, Financial instruments- Credit losses (Topic 326)	866		—
Reversal of expenses	(545)		(1,094)
Write off	—		(66)
Exchange difference	28		23
Balance at end of the period	$	5,354	$	3,270

BONDS PAYABLE - Narrative (Details) $ in Thousands, ¥ in Millions							3 Months Ended
	Jan. 31, 2027 USD ($)	Jan. 31, 2027 CNY (¥)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CNY (¥)	Nov. 10, 2022 USD ($)	Nov. 10, 2022 CNY (¥)	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CNY (¥)	Dec. 29, 2018 USD ($)	Dec. 29, 2018 CNY (¥)
Schedule of Bonds Payable [Line Items]
Bond loan									$ 87,776	¥ 600
Equity holding pledged percentage									12.39%	12.39%
Debt instrument, convertible amount, subsidiary value threshold							$ 950,000
Repayments of convertible debt (in dollars and yuan renminbi)			$ 14,630	¥ 100	$ 14,629	¥ 100
Debt instrument, interest rate, stated percentage							12.00%	12.00%
Subscribed amount (in dollars and yuan renminbi)							$ 43,888	¥ 300
Forecast
Schedule of Bonds Payable [Line Items]
Repayments of convertible debt (in dollars and yuan renminbi)	$ 43,888	¥ 300

FAIR VALUE MEASUREMENT

3 Months Ended

Mar. 31, 2023

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, 2022 and March 31, 2023. 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 11 – Warrants.


	Fair Value Measurement as of December 31, 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	$	231,420	—	—	$	231,420
Restricted cash	71,197		—	—	71,197
Total financial asset	$	302,617	—	—	$	302,617
Warrant liability	$	—	—	126	$	126
Total financial liability	$	—	—	126	$	126

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


	Fair Value Measurement as of March 31, 2023
(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	$	200,305	—	—	$	200,305
Restricted cash	$	60,175	—	—	$	60,175
Total financial asset	$	260,480	—	—	$	260,480
Warrant liability	$	—	—	109	$	109
Total financial liability	$	—	—	109	$	109

The following is a reconciliation of the beginning and ending balances for Level 3 warrant liability during the three months ended March 31, 2022 and 2023:


(In thousands)	Three Months Ended March 31,
	2022		2023
Balance at the beginning of the period	1,105		$	126
Changes in fair value	435		(17)
Balance at end of the period	$	1,540	$	109

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

INVENTORIES

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

INVENTORIES

Inventories consisted of the following:


	December 31, 2022		March 31, 2023
Work in process	$	48,747	$	44,020
Raw materials	29,331		31,604
Finished goods	6,174		12,045
Total	$	84,252	$	87,669

Provision for obsolete inventories at $471 and $0 were recognized for the three months ended March 31, 2022 and 2023, respectively.

BONDS PAYABLE - Schedule of Bonds Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,888	$ 43,888
Huzhou Saiyuan
Bonds Payable [Line Items]
Long-term bonds payable, Total	$ 43,888	$ 43,888

NET LOSS PER SHARE

3 Months Ended

Mar. 31, 2023

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 March 31,
	2022		2023
Numerator:
Net loss attributable to common stock shareholders	$	(43,776)	$	(29,581)
Denominator:
Weighted average common stock used in computing basic and diluted net loss per share	298,843,016		307,714,841
Basic and diluted net loss per share	$	(0.15)	$	(0.10)

For the three months ended March 31, 2022 and 2023, 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 March 31,
	2022	2023
Shares issuable upon exercise of stock options	33,482,818	36,054,182
Shares issuable upon vesting of non-vested shares	673,534	3,070,520
Shares issuable upon vesting of Capped non-vested shares	—	13,349,144
Shares issuable upon exercise of warrants	28,437,000	28,437,000
Shares issuable upon vesting of Earn-out shares	19,999,988	19,999,988
Shares issuable that may be subject to cancellation	1,687,500	1,687,500

BANK BORROWINGS (Tables)

3 Months Ended

Mar. 31, 2023

Bank Borrowings [Abstract]

Schedule of Bank Borrowings Repayment


Repayment Date						Repayment Amount
June 10, 2023						$4,368 (RMB30 million)
December 10, 2023						$10,193 (RMB70 million)
June 10, 2024						$14,561 (RMB100 million)
December 10, 2024						$14,561 (RMB100 million)

Schedule of Bank Borrowings

Changes in bank borrowings are as follows:


	Three Months Ended March 31,
	2022		2023
Beginning balance	$	13,301	$	46,395
Proceeds from bank borrowings	—		4,384
Exchange difference	34		185
Ending balance	$	13,335	$	50,964


Balance of bank borrowings includes:	December 31, 2022		March 31, 2023
Current	$	17,398	$	21,842
Non-current	28,997		29,122
Total	$	46,395	$	50,964

Schedule of Banking Facilities and Aggregate Carrying Amount

The aggregate carrying amount of the assets pledged by the Group as of December 31, 2022 and March 31, 2023 are as follows:


	December 31, 2022		March 31, 2023
Buildings	$	27,245	$	26,926
Land use rights	12,639		12,618
Total	$	39,884	$	39,544

WARRANTS (Tables)

3 Months Ended

Mar. 31, 2023

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:


	March 31, 2023
Market price of public stock	$	1.24
Exercise price	$	11.50
Expected term (years)	3.32
Volatility	77.47		%
Risk-free interest rate	3.69		%
Dividend rate	0.00		%

PRODUCT WARRANTY - Schedule of Warranty Cost (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Product Warranties Disclosures [Abstract]
Product warranty – current	$ 11,279	$ 13,044
Product warranty – non-current	28,331	29,016
Total	$ 39,610	$ 42,060

SHARE-BASED PAYMENT (Tables)

3 Months Ended

Mar. 31, 2023

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:


	Three Months Ended March 31, 2023
Exercise price	$	1.21
Expected terms (years)	6.00
Volatility	55.59		%
Risk-free interest rate	3.48		%
Expected dividend yields	0.00		%
Fair value of options granted	$	0.67

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 the 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:


	Three months ended March 31, 2023
Expected term (years)	2.92
Volatility	61.89	%
Risk-free interest rate	3.83	%
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 three months ended March 31, 2022 and 2023 was as follows:


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, 2021	33,503,657	6.19	4.95	7.9
Forfeited	(72,135)	6.28	4.92
Outstanding as of March 31, 2022	33,431,522	6.18	4.98	7.7
Expected to vest and exercisable as of March 31, 2022	33,431,522	6.18	4.98	7.7
Outstanding as of December 31, 2022	36,091,071	6.08	4.80	6.8
Grant	240,000	1.25	0.67
Forfeited	(128,239)	6.28	4.86
Outstanding as of March 31, 2023	36,202,832	6.05	4.77	6.6
Expected to vest and exercisable as of March 31, 2023	36,202,832	6.05	4.77	6.6
Exercisable as of March 31, 2023	11,779,651	6.19	5.00	6.7

Schedule Non-vested Shares Activity

Activity on the CRSUs for the three months ended March 31, 2022 and 2023 was as follows:


	Number on Non-Vested Shares	Weighted Average Grant Date Fair Value per Share (US$)
Outstanding as of December 31, 2021	23,027,399	8.74	1
Outstanding as of March 31, 2022	23,027,399	8.74
Outstanding as of December 31, 2022	13,444,469	2.38
Outstanding as of March 31, 2023	13,444,469	2.38

The non-vested shares activity for the three months ended March 31, 2022 and 2023 was as follows:


	Number of Non-Vested Shares	Weighted Average Grant Date Fair Value Per Share (US$)
Outstanding as of December 31, 2021	671,441	9.08
Grant	38,566	6.78
Vested	(8,124)	8.52
Forfeited	(13,196)	8.87
Outstanding as of March 31, 2022	688,687	8.96
Outstanding as of December 31, 2022	1,222,837	6.92
Grant	2,895,140	1.86
Vested	(111,437)	6.76
Forfeited	(14,904)	5.43
Outstanding as of March 31, 2023	3,991,636	3.26

Schedule of Classification of Stock-based Compensation

The following summarizes the classification of share-based compensation:


	Three Months Ended March 31, 2022		Three Months Ended March 31, 2023
Cost of revenues	$	1,934	$	1,504
General and administrative expenses	18,136		12,168
Research and development expenses	5,139		3,014
Selling and marketing expenses	2,921		1,243
Construction in process	162		140
Total	$	28,292	$	18,069

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
	Mar. 31, 2023	Mar. 31, 2022
Numerator:
Net loss attributable to common stock shareholders	$ (29,581)	$ (43,776)
Denominator:
Weighted average shares used in calculating net loss per share of common stock, basic (in shares)	307,714,841	298,843,016
Weighted average shares used in calculating net loss per share of common stock, diluted (in shares)	307,714,841	298,843,016
Basic net loss per share (in dollars per share)	$ (0.10)	$ (0.15)
Diluted net loss per share (in dollars per share)	$ (0.10)	$ (0.15)

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 65
-Paragraph 1
-Subparagraph (e)(4)
-URI https://asc.fasb.org/extlink&oid=126732423&loc=SL123482106-238011

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI https://asc.fasb.org/extlink&oid=124431687&loc=d3e22583-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
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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

ACQUIRED INTANGIBLE ASSETS, NET

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

ACQUIRED INTANGIBLE ASSETS, NET


	December 31, 2022		March 31, 2023
Cost of acquired intangible assets	$	3,493	$	5,679
Less: accumulated amortization	(1,857)		(1,988)
Acquired intangible assets, net	$	1,636	$	3,691

In December, 2022, Microvast Inc. set up a new subsidiary named Microvast Precision Works Co., Ltd ("MPW") together with a third party (the "NCI"). In the first quarter of 2023, the Company invested cash of $5,072 in MPW to hold a 70% shareholding, and the NCI injected patents with a total value of $2,174 for the remaining 30% shareholding. Such patents received are recorded as intangible assets.

The Group recorded amortization expense of $61 and $129 for the three months ended March 31, 2022 and 2023, respectively. No impairment losses were recognized for the three months ended March 31, 2022 and 2023.

The annual amortization expense for each of the five succeeding fiscal years and thereafter are as follows:


Nine months period ending December 31, 2023	$	388
2024	512
2025	508
2026	506
2027	499
2028	400
Thereafter	878
Total	$	3,691

NET LOSS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31,
	2022		2023
Numerator:
Net loss attributable to common stock shareholders	$	(43,776)	$	(29,581)
Denominator:
Weighted average common stock used in computing basic and diluted net loss per share	298,843,016		307,714,841
Basic and diluted net loss per share	$	(0.15)	$	(0.10)

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


	Three Months Ended March 31,
	2022	2023
Shares issuable upon exercise of stock options	33,482,818	36,054,182
Shares issuable upon vesting of non-vested shares	673,534	3,070,520
Shares issuable upon vesting of Capped non-vested shares	—	13,349,144
Shares issuable upon exercise of warrants	28,437,000	28,437,000
Shares issuable upon vesting of Earn-out shares	19,999,988	19,999,988
Shares issuable that may be subject to cancellation	1,687,500	1,687,500

SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2023

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, 2022 included in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2023, 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 months ended March 31, 2023 are not necessarily indicative of the results to be expected for any subsequent quarter or for the fiscal year ending December 31, 2023.

The financial information as of December 31, 2022 included on the condensed consolidated balance sheets is derived from the Group’s audited consolidated financial statements for the year ended December 31, 2022.

There have been no significant changes to the significant accounting policies disclosed in Note 2 of the audited consolidated financial statements for the years ended December 31, 2022.

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.

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 to provide the battery 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 months ended March 31, 2022 and 2023, the Group derived revenues from geographic regions as follows:


	Three Months Ended March 31,
	2022		2023
People’s Republic of China ("PRC")	$	19,838	$	32,612
Other Asia & Pacific countries	13,404		3,149
Asia & Pacific	33,242		35,761
Europe	2,751		10,185
U.S.	675		1,027
Total	$	36,668	$	46,973

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 March 31, 2022 and 2023, the Group recognized $479 and $1,788 of revenue previously included in advance from customers as of January 1, 2022 and January 1, 2023, 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 a 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 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. Liability-classified awards are remeasured at their fair-value-based measurement as of each reporting date until settlement. Forfeitures are recognized as they occur.

Operating leases

As of March 31, 2023, the Company recorded operating lease right-of-use (ROU) assets of $18,461 and operating lease liabilities of $18,387, including current portion in the amount of $2,562, which was recorded under accrued expenses and other current liabilities on the balance sheet.

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 machines 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 11 – 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 11 – Warrants).

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.

Label	Element	Value
Accounting Standards Update [Extensible Enumeration]	us-gaap_AccountingStandardsUpdateExtensibleList	Accounting Standards Update 2016-13 [Member]

- Definition

Indicates amendment to accounting standards.

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+ Details

INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2023

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consisted of the following:


	December 31, 2022		March 31, 2023
Work in process	$	48,747	$	44,020
Raw materials	29,331		31,604
Finished goods	6,174		12,045
Total	$	84,252	$	87,669

ACQUIRED INTANGIBLE ASSETS, NET - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Cost of acquired intangible assets	$ 5,679	$ 3,493
Less: accumulated amortization	(1,988)	(1,857)
Total	$ 3,691	$ 1,636

SHARE-BASED PAYMENT - Schedule of Effective Time Fair Value of the Stock Options was Determined Using the BLM (Details) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Number of shares, outstanding at beginning (in shares)	36,091,071	33,503,657	33,503,657
Number of shares, grant (in shares)	240,000
Number of shares, forfeited (in shares)	(128,239)	(72,135)
Number of shares, outstanding at ending (in shares)	36,202,832	33,431,522	36,091,071	33,503,657
Number of shares, expected to vest and exercisable (in shares)	36,202,832	33,431,522
Number of shares, exercisable (in shares)	11,779,651
Weighted Average Exercise Price (US$)
Weighted average exercise price, outstanding at beginning (in dollars per share)	$ 6.08	$ 6.19	$ 6.19
Weighted average exercise price, granted (in dollars per share)	1.25
Weighted average exercise price, forfeited (in dollars per share)	6.28	6.28
Weighted average exercise price, outstanding at ending (in dollars per share)	6.05	6.18	6.08	$ 6.19
Weighted average exercise price, expected to vest and exercisable (in dollars per share)	6.05	6.18
Weighted average exercise price, exercisable (in dollars per share)	6.19
Weighted Average Grant Date Fair Value (US$)
Weighted average grant date fair value, outstanding at beginning (in dollars per share)	4.80	4.95	4.95
Weighted average grant date fair value, granted (in dollars per share)	0.67
Weighted average grant date fair value per share, non-vested shares, forfeited (in dollars per share)	4.86	4.92
Weighted average grant date fair value, outstanding at ending (in dollars per share)	4.77	4.98	$ 4.80	$ 4.95
Weighted average grant date fair value, expected to vest and exercisable (in dollars per share)	4.77	$ 4.98
Weighted average grant date fair value, exercisable (in dollars per share)	$ 5.00
Weighted Average Remaining Contractual Life
Weighted average remaining contractual, outstanding	6 years 7 months 6 days	7 years 8 months 12 days	6 years 9 months 18 days	7 years 10 months 24 days
Weighted average remaining contractual life, expected to vest and exercisable	6 years 7 months 6 days	7 years 8 months 12 days
Weighted average remaining contractual life, exercisable	6 years 8 months 12 days

LEASES

3 Months Ended

Mar. 31, 2023

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 months ended March 31, 2023 was $880, which excluded cost of short-term contracts. Short-term lease cost for the three months ended March 31, 2023 was $71.

As of March 31, 2023, the weighted average remaining lease term was 11.2 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:


	Three months ended March 31, 2023
Cash payments for operating leases	$	887
Right-of-use assets obtained in exchange for new operating lease liabilities	$	2,493

The following is a maturity analysis of the annual undiscounted cash flows for lease liabilities as of March 31, 2023:


	As of March 31, 2023
Nine months period ending December 31, 2023	$	2,602
2024	$	2,527
2025	$	2,027
2026	$	1,770
2027	$	1,640
2028	$	1,640
Thereafter	$	11,614
Total future lease payments	$	23,820
Less: Imputed interest	$	(5,433)
Present value of operating lease liabilities	$	18,387

FAIR VALUE MEASUREMENT - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value Measurement (Details) - Schedule of fair value measurements of group’s assets and liabilities of recurring basis [Line Items]
Cash and cash equivalents	$ 200,305	$ 231,420
Restricted cash	60,175	71,197
Total financial asset	260,480	302,617
Warrant liability	109	126
Total financial liability	109	126
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	200,305	231,420
Restricted cash	60,175	71,197
Total financial asset	260,480	302,617
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	109	126
Total financial liability	$ 109	$ 126

BANK BORROWINGS - Schedule of Bank Borrowings Repayment (Details) - Forecast $ in Thousands, ¥ in Millions	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)							$ 4,368	¥ 30
December 10, 2023
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)					$ 10,193	¥ 70
June 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)			$ 14,561	¥ 100
December 10, 2024
Debt Instrument [Line Items]
Repayment amount (in dollars and yuan renminbi)	$ 14,561	¥ 100