LiveWire Group, Inc.

6. Additional Balance Sheet Information

Inventories are valued at the lower of cost or net realizable value using the first-in, first-out (“FIFO”) method for electric motorcycles and related products and average costing method for electric balance bikes and electric bikes. Inventories, net consisted of the following (in thousands):

Accrued liabilities primarily include accrued supplier commitments of $1,438 thousand, accrued capital expenditures of $1,023 thousand, accrued payroll and employee benefits of $3,177 thousand, and accrued engineering costs of $2,262 thousand as of June 30, 2025. Accrued liabilities primarily include accrued capital expenditures of $1,989 thousand, accrued payroll and employee benefits of $5,757 thousand, accrued engineering costs of $2,614 thousand, accrued restructuring of $675 thousand, and an accrual of $1,802 thousand for an unfavorable arbitration ruling related to a supplier claim (as discussed in Note 10) as of December 31, 2024.

Other current assets primarily include prepaid expenses of $3,368 thousand and $2,422 thousand as of June 30, 2025 and December 31, 2024, respectively.