The Company provides a limited warranty on new electric motorcycles for a period of two years, except for the battery which is covered for five years. The Company also provides limited warranties on parts and accessories, electric balance bikes and electric bikes. The warranty coverage for the retail customer generally begins when the product is sold to the retail customer. The Company accrues future warranty claims at the time of sale by the Company using an estimated cost based primarily on historical Company claim information. In the case of both warranty and recall costs, as actual experience becomes available it is used to update the accruals.

Additionally, the Company may from time-to-time initiate certain voluntary recall campaigns. The Company records estimated recall costs when the liability is both probable and estimable. This generally occurs when the Company’s management approves and commits to a recall. The warranty and recall liability are included in Accrued liabilities and Other long-term liabilities on the consolidated balance sheets.


	Three months ended
	March 31, 2026		March 31, 2025
Balance, beginning of period	$	2,016	$	881
Warranties issued during the period	227		75
Settlements made during the period	(511)		(249)

Recalls and changes to pre-existing warranty liabilities	352		(155)
Balance, end of period	$	2,084	$	552

The liability for recall campaigns included in the above table was $25 thousand and $29 thousand as of March 31, 2026 and December 31, 2025, respectively.