Blink Charging Co

Previous wording

The following discussion and analysis of the results of operations and financial condition of Blink Charging Co. (together with its subsidiaries, “Blink” or the “Company”) as of March 31, 2024 and for the three months ended March 31, 2024 and 2023 should be read in conjunction with our condensed consolidated financial statements and the notes to those financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us,” “we,” “our” and similar terms refer to Blink. This Quarterly Report contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this Quarterly Report may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of our plans or strategies, projected or anticipated benefits from acquisitions to be made by us, or projections involving anticipated revenues, earnings or other aspects of our operating results. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions, are intended to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements. Factors that may affect our results include, but are not limited to, the risks and uncertainties set forth under Part 1, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and under a similar item in subsequent periodic reports, as discussed elsewhere in this Quarterly Report, particularly in Part II, Item IA - Risk Factors.

Current wording

The following discussion and analysis of the results of operations and financial condition of Blink Charging Co. (together with its subsidiaries, “Blink” or the “Company”) as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this Quarterly Report on Form 10-Q. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to “us,” “we,” “our” and similar terms refer to Blink. This Quarterly Report contains forward-looking statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this Quarterly Report may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of our plans or strategies, projected or anticipated benefits from acquisitions to be made by us, or projections involving anticipated revenues, earnings or other aspects of our operating results. The words “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions, are intended to identify forward-looking statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements. Factors that may affect our results include, but are not limited to, the risks and uncertainties set forth under Part 1, Item 1A, “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and under a similar item in subsequent periodic reports, as discussed elsewhere in this Quarterly Report, particularly in Part II, Item IA - Risk Factors.

Previous wording

We are a leading manufacturer, owner, operator and provider of electric vehicle (“EV”) charging equipment and networked EV charging services in the continuously growing U.S. and international markets for EVs. Blink offers residential and commercial EV charging equipment and services, enabling EV drivers to recharge at various location types. Blink’s principal line of products and services is its Blink EV charging network (the “Blink Networks”) and Blink EV charging equipment, also known as electric vehicle supply equipment (“EVSE”) and other EV-related services. The Blink Networks are a proprietary, cloud-based system that operates, maintains, and manages Blink charging stations and handles the associated charging data, back-end operations, and payment processing. The Blink Networks provide property owners, managers, parking companies, state and municipal entities, and other types of commercial customers, (“Property Partners”) with cloud-based services that enable the remote monitoring and management of EV charging stations. The Blink Networks also provide EV drivers with vital station information, including station location, availability and fees.

Current wording

We are a leading manufacturer, owner, operator and provider of electric vehicle (“EV”) charging equipment and networked EV charging services in the continuously growing U.S. and international markets for EVs. Blink offers residential and commercial EV charging equipment and services, enabling EV drivers to recharge at various location types. Blink’s principal line of products and services is its Blink EV charging network (the “Blink Networks”) and Blink EV charging equipment, also known as electric vehicle supply equipment (“EVSE”) and other EV-related services. The Blink Networks is a proprietary, cloud-based system that operates, maintains, and manages Blink charging stations and handles the associated charging data, back-end operations, and payment processing. The Blink Networks provide property owners, managers, parking companies, state and municipal entities, and other types of commercial customers, (“Property Partners”) with cloud-based services that enable the remote monitoring and management of EV charging stations. The Blink Networks also provide EV drivers with vital station information, including station location, availability and fees.

Previous wording

We also own and operate EV car-sharing and ride-sharing programs through our wholly owned subsidiary, Blink Mobility. These programs allow customers to share electric vehicles through subscription services and charge those cars through our charging stations.

Current wording

We also own and operate an EV car-sharing program through our wholly owned subsidiary, Envoy Mobility. Inc. This program allows customers to share EVs through subscription services and charge those cars through our charging stations.

Previous wording

In pursuit of our commitment to fostering the widespread adoption of electric vehicles (EVs) through the establishment and management of EV charging infrastructure on a global scale, we remain steadfast in our dedication to mitigating climate change. This dedication is evidenced by our efforts to diminish greenhouse gas emissions stemming from gasoline-powered vehicles with the goal of being a leader in the build-out of EV charging infrastructure and maximizing our share of the EV charging market, we have established strategic commercial, municipal, and retail partnerships across industry verticals and encompassing numerous transit/destination locations, including airports, auto dealers, healthcare/medical, hotels, mixed-use, municipal sites, multifamily residential and condos, parks and recreation areas, parking lots, religious institutions, restaurants, retailers, schools and universities, stadiums, supermarkets, transportation hubs, and workplace locations.

Current wording

In pursuit of our commitment to fostering the widespread adoption of EVs through the establishment and management of EV charging infrastructure globally we remain steadfast in our dedication to mitigating climate change. This dedication is evidenced by our efforts to diminish greenhouse gas emissions stemming from gasoline-powered vehicles. To be a leader in the build-out of EV charging infrastructure and maximize our share of the EV charging market, we have established strategic commercial, municipal, and retail partnerships across industry verticals and encompassing numerous transit/destination locations, including airports, auto dealers, healthcare/medical, hotels, mixed-use, municipal sites, multifamily residential and condos, parks and recreation areas, parking lots, religious institutions, restaurants, retailers, schools and universities, stadiums, supermarkets, transportation hubs, and workplace locations.

Previous wording

In 2023, we entered into agreements with significant new customers, including the United States Postal Service (USPS), Mack Trucks, McArthurGlen, BluePoint, Mike Albert Fleet Solutions, Royal Farms, John Henry General Store, Moberly Motor Company, Arcos Dorados (McDonald’s Puerto Rico), AAA, Allegiant Stadium (Las Vegas), Village of Tuckahoe (NY), Miami Beach (FL), Metropolitan Government of Nashville-Davidson County, and Salt Lake City International Airport, that expand our potential for unit sales and deployments. Similarly, in 2022, we entered into agreements with several new significant customers, including Mitsubishi, Cushman & Wakefield, Triple J, Q-Park, Best Buy, UBS, Bosch Mexico, Porsche Puerto Rico and Guatemala, Veris Residential, Greystar, Cambium, and the cities of Atlanta (GA), Rockford (IL), Newton (IA), and Winslow (NJ), Leeds (UK).

Current wording

We have agreements with significant customers, including the United States Postal Service (USPS), Mack Trucks, McArthurGlen, BluePoint, Mike Albert Fleet Solutions, Royal Farms, John Henry General Store, Moberly Motor Company, Arcos Dorados (McDonald’s Puerto Rico), AAA, Allegiant Stadium (Las Vegas), Village of Tuckahoe (NY), Miami Beach (FL), Metropolitan Government of Nashville-Davidson County, and Salt Lake City International Airport, Mitsubishi, Cushman & Wakefield, Triple J, Q-Park, Best Buy, UBS, Bosch Mexico, Porsche Puerto Rico and Guatemala, Veris Residential, Greystar, Cambium, and the cities of Atlanta (GA), Rockford (IL), Newton (IA), and Winslow (NJ), Leeds (UK) that expand our potential for unit sales and deployments.

Previous wording

As of March 31, 2024, we sold or deployed 94,476 chargers, of which 77,157 were in the Blink Networks (244 Level 1 publicly accessible commercial chargers, 34,532 Level 2 publicly accessible commercial chargers, 5,478 Level 2 private commercial chargers, 903 DC Fast Charging EV publicly accessible chargers, 35 DC Fast Charging EV private chargers, 10,424 residential Level 1 Blink EV chargers, and 4,309 residential Level 2 Blink EV chargers, inclusive of 21,232 chargers pending to be commissioned). Included in the Blink Networks are 5,832 chargers owned by us. The remaining 17,319 were non-networked, on other networks or international sales or deployments (792 Level 2 commercial chargers, 16 DC Fast Charging chargers, 12,224 residential Level 2 Blink EV chargers, 2,819 sold to other U.S. networks and 1,468 sold internationally). The charger units noted above are net of swap-out or replacement units.

Current wording

As of June 30, 2024, we contracted, sold, or deployed 98,261 chargers, of which 78,105 were on Blink networks (comprised of 57,722 Level 2 commercial chargers, 1,103 DC commercial chargers, 669 residential chargers, and 18,611 chargers pending to be commissioned). Included on Blink networks are 6,094 chargers owned by us. The remaining 20,156 were non-networked, on other networks or international sales or deployments (comprised of 3,441 Level 2 commercial chargers, 59 DC Fast Charging chargers, 12,235 residential Level 2 Blink EV chargers, 2,767 sold for use on other U.S. networks and 1,654 sold internationally). Blink networked chargers include public and private chargers, as designated by stations owners, and are net of swap-outs, replacement units, and decommissioned units. Certain commercial chargers include chargers installed in residential settings for commercial purposes. All chargers, including at all international Blink locations, are categorized based on U.S. Department of Energy guidelines.

Previous wording

As reflected in our condensed consolidated financial statements as of March 31, 2024, we had cash and cash equivalents of $93,458, working capital of $130,506 and an accumulated deficit of $554,896. During the three months ended March 31, 2024, we incurred a net loss of $17,173. We have not yet achieved profitability.

Current wording

As reflected in our condensed consolidated financial statements as of June 30, 2024, we had cash and cash equivalents of $73,885, working capital of $111,801 and an accumulated deficit of $574,955. During the three and six months ended June 30, 2024, we incurred net losses of $20,059 and $37,232, respectively. During the six months ended June 30, 2024 and 2023, we used cash in operations of $25,735 and $65,040, respectively. We have not yet achieved profitability.

Previous wording

On September 2, 2022, we entered into a Sales Agreement (the “Sales Agreement”) with Barclays Capital Inc., BofA Securities, Inc., HSBC Securities (USA) Inc., ThinkEquity LLC, H.C. Wainwright & Co., LLC and Roth Capital Partners, LLC, as our sales agents (collectively, the “Agents”) to conduct an at-the-market (“ATM”) equity offering program, pursuant to which we may publicly issue and sell from time to time shares of our common stock having an aggregate offering price of up to $250,000 through the Agents. We are using the net proceeds from the sale of our shares of common stock under the ATM equity offering program to supplement our operating cash flows in order to fund our EV charging station deployments and other growth plans. We are also using a portion of the net proceeds we receive for working capital and other corporate purposes. The amounts and timing of our use of the net proceeds will depend on a number of factors, such as the timing and progress of our EV charging station deployment efforts, the timing and progress of any partnering and collaboration efforts, and technological advances. Under the Sales Agreement, the Agents are entitled to an aggregate fixed commission of up to 3% of the gross proceeds from shares sold and we have provided the Agents with customary indemnification rights.

Current wording

On September 2, 2022, we entered into a Sales Agreement (the “Sales Agreement”) with Barclays Capital Inc., BofA Securities, Inc., HSBC Securities (USA) Inc., ThinkEquity LLC, H.C. Wainwright & Co., LLC and Roth Capital Partners, LLC, as our sales agents (collectively, the “Agents”) to conduct an at-the-market (“ATM”) equity offering program, pursuant to which we may publicly issue and sell from time to time shares of our common stock having an aggregate offering price of up to $250,000 through the Agents. We use the net proceeds from the sale of our shares of common stock under the ATM equity offering program to supplement our operating cash flows to fund our EV charging station deployments and other growth plans. We also use some of the net proceeds we receive for working capital and other corporate purposes. The amounts and timing of our use of the net proceeds will depend on a number of factors, such as the timing and progress of our EV charging station deployment efforts, the timing and progress of any partnering and collaboration efforts, and technological advances. Under the Sales Agreement, the Agents are entitled to an aggregate fixed commission of up to 3% of the gross proceeds from sales. We provided the Agents with customary indemnification rights.

Previous wording

During the three months ended March 31, 2024, the Company sold 8,177,472 shares of its common stock pursuant to the ATM program for gross proceeds of approximately $25,651 and net proceeds of approximately $25,070 after deducting offering expenses. As of March 31, 2024, 39,650,888 shares had been sold pursuant to the ATM program, representing gross proceeds of approximately $149,999.

Current wording

During the six months ended June 30, 2024, the Company sold 8,177,472 shares of its common stock pursuant to the ATM program for gross proceeds of approximately $25,651 and net proceeds of approximately $25,070 after deducting offering expenses. As of June 30, 2024, 39,650,888 shares have been sold pursuant to the ATM program, representing gross proceeds of approximately $149,999.

Previous wording

Competition- The EV charging equipment and service market is highly competitive, and we expect the market to become increasingly competitive as new entrants enter this growing market. Our products and services compete on product performance and features, the total cost of ownership, origin of manufacturing, sales capabilities, financial stability, brand recognition, product reliability, and the installed base’s size. Existing competitors may expand their product offerings and sales strategies, and new competitors may enter the market. If our market share decreases due to increased competition, our revenue and ability to generate profits in the future may be impacted.

Current wording

Competition- The EV charging equipment and service market is highly competitive, and we expect the market to become increasingly competitive as new entrants enter this growing market. Our products and services compete on product performance and features, the total cost of ownership, origin of manufacturing, sales capabilities, financial stability, brand recognition, product reliability, and the installed base’s size. Existing competitors may expand their product offerings and sales strategies, and new competitors may enter the market. If our market share decreases due to increased competition, its revenue and ability to generate profits in the future may be negatively impacted.

Previous wording

Growth- Our growth is highly dependent upon the adoption by consumers of EVs, and we are subject to a risk of any reduced demand for EVs. The market for alternative fuel vehicles is still relatively new, rapidly evolving, characterized by rapidly changing technologies, price competition, additional competitors, evolving government regulation and industry standards, frequent new vehicle announcements, long development cycles for EV original equipment manufacturers, and changing consumer demands and behaviors. Factors that may influence the purchase and use of alternative fuel vehicles, and specifically EVs, include perceptions about EV quality, safety (in particular with respect to battery chemistries), design, performance and cost; the limited range over which EVs may be driven on a single battery charge and concerns about running out of power while in use; improvements in the fuel economy of the internal combustion engine; consumers’ desire and ability to purchase a luxury automobile or one that is perceived as exclusive; the environmental consciousness of consumers; volatility in the cost of oil and gasoline; consumers’ perceptions of the dependency of the United States on oil from unstable or hostile countries and the impact of international conflicts; government regulations and economic incentives promoting fuel efficiency and alternate forms of energy; access to charging stations, standardization of EV charging systems and consumers’ perceptions about convenience and cost to charge an EV; and the availability of tax and other governmental incentives to purchase and operate EVs or future regulation requiring increased use of nonpolluting vehicles. If the market for EVs does not gain broad market acceptance or develops slower than we expect, our business, prospects, financial condition and operating results may be adversely affected.

Current wording

Growth- Our growth is highly dependent on the adoption by consumers of EVs, and we are subject to the risk of reduced demand for EVs. The market for alternative fuel vehicles is still relatively new, rapidly evolving, and characterized by rapidly changing technologies, price competition, additional competitors, evolving government regulation and industry standards, frequent new vehicle announcements, long development cycles for EV original equipment manufacturers, and changing consumer demands and behaviors. Factors that may influence the purchase and use of alternative fuel vehicles, and specifically EVs, include perceptions about EV quality, safety (in particular with respect to battery chemistries), design, performance and cost; the limited range over which EVs may be driven on a single battery charge and concerns about running out of power while in use; improvements in the fuel economy of the internal combustion engine; consumers’ desire and ability to purchase a luxury automobile or one that is perceived as exclusive; the environmental consciousness of consumers; volatility in the cost of oil and gasoline; consumers’ perceptions of the dependency of the United States on oil from unstable or hostile countries and the impact of international conflicts; government regulations and economic incentives promoting fuel efficiency and alternate forms of energy; access to charging stations, standardization of EV charging systems and consumers’ perceptions about convenience and cost to charge an EV; and the availability of tax and other governmental incentives to purchase and operate EVs or future regulation requiring increased use of non-polluting vehicles. If the market for EVs does not gain broad market acceptance or develops slower than we expect, our business, prospects, financial condition, and operating results may be adversely affected.

Previous wording

*Regulations -*Our business is subject to a variety of federal, state and international laws and regulations, including those with respect to government incentives promoting fuel efficiency and alternate forms of energy, electric vehicles and others. These laws and regulations, and the interpretation or application of these laws and regulations, could change. Any reduction, elimination or discriminatory application of government subsidies and economic incentives because of policy changes, fiscal tightening or other reasons may result in diminished revenues from government sources and diminished demand for our products. In addition, new laws or regulations affecting our business could be enacted. These laws and regulations are frequently costly to comply with and may divert a significant portion of management’s attention. Changes to these applicable laws or regulations could affect business and/or harm our customers, thereby adversely affecting our business, financial condition and results of operations.

Current wording

Regulations -Our business is subject to various federal, state, and international laws and regulations, including those with respect to government incentives promoting fuel efficiency and alternate forms of energy, electric vehicles, and others. These laws and regulations, and the interpretation or application of these laws and regulations, could change. Any reduction, elimination, or discriminatory application of government subsidies and economic incentives because of policy changes, fiscal tightening, or other reasons may result in diminished revenues from government sources and reduced demand for our products. In addition, new laws or regulations affecting our business could be enacted. These laws and regulations are frequently costly to comply with and may divert a significant portion of management’s attention. Changes to these applicable laws or regulations could affect business and/or harm our customers, adversely affecting our business, financial condition, and results of operations.

Previous wording

Total revenue for the three months ended March 31, 2024 increased by $15,900, or 73%, to $37,568 compared to $21,668 during the three months ended March 31, 2023.

Current wording

Total revenue for the three months ended June 30, 2024 increased by $420, or 1%, to $33,262 compared to $32,842 during the three months ended June 30, 2023.

Previous wording

Charging service revenue from Company-owned charging stations was $5,027 for the three months ended March 31, 2024 as compared to $2,885 for the three months ended March 31, 2023, an increase of $2,142, or 74%. The increase is due to the increase in utilization of chargers and an increased number of chargers on the Blink Networks.

Current wording

Charging service revenue from Company-owned charging stations was $4,936 for the three months ended June 30, 2024 as compared to $4,367 for the three months ended June 30, 2023, an increase of $569, or 13%. The increase is due to the increase in utilization of chargers and an increased number of chargers on the Blink Networks.

Previous wording

Network fee revenues were $2,065 for the three months ended March 31, 2024 as compared to $1,628 for the three months ended March 31, 2023, an increase of $437, or 27%. The increase was attributable to increases in host owned units as well as billings and invoicing to Property Partners during the three months ended March 31, 2024, as compared to the three months ended March 31, 2023.

Current wording

Network fee revenues were $1,907 for the three months ended June 30, 2024 as compared to $1,667 for the three months ended June 30, 2023, an increase of $240, or 14%. The increase was attributable to increases in host owned units during the three months ended June 30, 2024, as compared to the three months ended June 30, 2023.

Previous wording

Warranty revenues were $953 for the three months ended March 31, 2024 as compared to $393 for the three months ended March 31, 2023, an increase of $560, or 142%. The increase was primarily attributable to an increase in warranty contracts sold for the three months March 31, 2024 as compared to the three months March 31, 2023.

Current wording

Warranty revenues were $1,340 for the three months ended June 30, 2024 as compared to $921 for the three months ended June 30, 2023, an increase of $419, or 45%. The increase was primarily attributable to an increase in warranty contracts sold for the three months ended June 30, 2024 as compared to the three months ended June 30, 2023. As of June 30, 2024, we recorded a liability of $782 which represents the estimated cost of existing backlog of known warranty cases.

Previous wording

Grant and rebate revenues were $583 during the three months ended March 31, 2024 as compared to $49 during the three months ended March 31, 2023, a increase of $534, or 1,090%. Grant and rebates relating to equipment and the related installation are deferred and amortized in a manner consistent with the depreciation expense of the related assets over their useful lives. The increase in revenue was primarily related to the timing of the amortization of previous years’ state grants/rebates associated with the installation of chargers during the three months March 31, 2024 and 2023.

Current wording

Grant and rebate revenues were $52 during the three months ended June 30, 2024 as compared to $188 during the three months ended June 30, 2023, a decrease of $136, or 72%. Grant and rebates relating to equipment and the related installation are deferred and amortized in a manner consistent with the depreciation expense of the related assets over their useful lives. The decrease in revenue was primarily related to the timing of the amortization of previous years’ state grants/rebates associated with the installation of chargers during the three months ended June 30, 2024 and 2023.

Previous wording

Car-sharing services revenues were $1,097 during the three months ended March 31, 2024 as compared to $252 during the three months ended March 31, 2023, an increase of $845, or 335%. These revenues are derived from car-sharing subscription services through a program with the City of Los Angeles, which was associated with the acquisition of BlueLA in September 2020. Also contributing to the increase in revenues for the three months ended March 31, 2024 are revenues of $869 from Envoy, which was acquired in April 2023.

Current wording

Car-sharing services revenues were $1,202 during the three months ended June 30, 2024 as compared to $957 during the three months ended June 30, 2023, an increase of $245, or 26%. These revenues are derived from car-sharing subscription services.

Previous wording

Other revenue increased by $263 or 365% to $335 for the three months ended March 31, 2024 as compared to $72 for the three months ended March 31, 2023. The increase was primarily attributable to higher Low Carbon Fuel Standard (LCFS) credits generated during the three months March 31, 2024 compared to the same period in 2023. We generate these credits from the electricity utilized by our electric car charging stations as a byproduct from our charging services in the states of California and Oregon.

Current wording

Other revenue increased by $88 or 57% to $243 for the three months ended June 30, 2024 as compared to $155 for the three months ended June 30, 2023. The increase was primarily attributable to higher Low Carbon Fuel Standard (LCFS) credits generated during the three months ended June 30, 2024 compared to the same period in 2023. We generate these credits from the electricity utilized by our electric car charging stations as a byproduct from our charging services in the states of California and Oregon.

Previous wording

Cost of revenues primarily consists of electricity reimbursements, revenue share payments to our Property Partner hosts, the cost of charging stations sold, connectivity charges provided by telco and other networks, warranty, repairs and maintenance services, and depreciation of our installed charging stations. Cost of revenues for the three months ended March 31, 2024 were $24,149 as compared to $17,125 for the three months ended March 31, 2023, an increase of $7,024 or 41%.

Current wording

Cost of revenues primarily consists of electricity reimbursements, revenue share payments to our Property Partner hosts, the cost of charging stations sold, connectivity charges provided by telco and other networks, warranty, repairs and maintenance services, and depreciation of our installed charging stations. Cost of revenues for the three months ended June 30, 2024 were $22,549 as compared to $20,551 for the three months ended June 30, 2023, an increase of $1,998 or 10%. There is a degree of variability in our costs in relationship to our revenues from period to period, primarily due to:

Previous wording

Cost of product sales increased by $4,871, or 42%, from $11,731 for the three months ended March 31, 2023 as compared to $16,602 for the three months ended March 31, 2024. The increase was primarily due to the increase in product sales of commercial chargers, DC fast chargers and home residential chargers during the three months ended March 31, 2024 compared to the same period in 2023.

Current wording

Cost of product sales increased by $1,082, or 8%, from $13,159 for the three months ended June 30, 2023 as compared to $14,241 for the three months ended June 30, 2024. The increase was primarily due to the mix of product sales of commercial chargers, DC fast chargers and home residential chargers during the three months ended June 30, 2024 compared to the same period in 2023.

Previous wording

Cost of charging services-company-owned charging stations (electricity reimbursements) decreased by $182, or 21%, to $705 for the three months ended March 31, 2024 as compared to $887 for the three months ended March 31, 2023. The decrease in 2024 was attributable to the mix of charging stations generating charging service revenues subject to electricity reimbursement.

Current wording

Cost of charging services-company-owned charging stations (electricity reimbursements) decreased by $248, or 33%, to $495 for the three months ended June 30, 2024 as compared to $743 for the three months ended June 30, 2023. The decrease in 2024 was attributable to the mix of charging stations generating charging service revenues subject to electricity reimbursement.

Previous wording

Host provider fees increased by $1,395, or 85%, to $3,042 during the three months ended March 31, 2024 as compared to $1,647 during the three months ended March 31, 2023. This increase was a result of the mix of chargers generating revenue and their corresponding revenue share percentage payments to Property Partner hosts pursuant to their agreements.

Current wording

Host provider fees increased by $1,043, or 47%, to $3,282 during the three months ended June 30, 2024 as compared to $2,239 during the three months ended June 30, 2023. This increase was a result of the mix of chargers generating revenue and their corresponding revenue share percentage payments to Property Partner hosts pursuant to their agreements.

Previous wording

Network costs increased by $152 or 35%, to $589 during the three months ended March 31, 2024 as compared to $437 during the three months ended March 31, 2023. The increase was a result of the increase in charging stations on our network and costs incurred related to the upgrading of our network system compared to the same period in 2023.

Current wording

Network costs increased by $155 or 31%, to $650 during the three months ended June 30, 2024 as compared to $495 during the three months ended June 30, 2023. The increase was a result of the increase in charging stations on our network and costs incurred related to the upgrading of our network system compared to the same period in 2023.

Previous wording

Warranty and repairs and maintenance costs decreased by $343, or 36%, to $605 during the three months ended March 31, 2024 from $948 during the three months ended March 31, 2023. The decrease in 2024 was attributable to significant efforts expended to reduce the backlog in warranty and repairs and maintenance cases in the prior year.

Current wording

Warranty and repairs and maintenance costs decreased by $434, or 31%, to $981 during the three months ended June 30, 2024 from $1,415 during the three months ended June 30, 2023. The decrease in 2024 was attributable to significant efforts expended to reduce the backlog in warranty and repairs and maintenance cases in the prior year.

Previous wording

Cost of car-sharing services was $862 during the three months ended March 31, 2024 as compared to $637 during the 2023 period. The increase was due to an increase in vehicles used in this operation during the period. These costs are from car-sharing subscription services through a program with the City of Los Angeles, which was associated with the acquisition of BlueLA in September 2020. Also contributing to the increase in costs for these services during the three months ended March 31, 2024 is $814 from Envoy, which was acquired in April 2023.

Current wording

Cost of car-sharing services was $1,284 during the three months ended June 30, 2024 as compared to $1,594 during the 2023 period. The decrease was due to a reduction in costs related to vehicles used in this operation during the period.

Previous wording

Depreciation and amortization expense increased by $906, or 108%, to $1,744 for the three months ended March 31, 2024 as compared to $838 for the three months ended March 31, 2023. The increase in depreciation expense was attributable to an increase in the number of EV charging stations and vehicles associated with the ride-share services.

Current wording

Depreciation and amortization expense increased by $710, or 78%, to $1,616 for the three months ended June 30, 2024 as compared to $906 for the three months ended June 30, 2023. The increase in depreciation expense was attributable to an increase in the number of EV charging stations and vehicles associated with the ride-share services.

Previous wording

Compensation expense decreased by $7,752, or 34%, to $14,957 (consisting of approximately $14.0 million of cash compensation and benefits and approximately $0.9 million of non-cash compensation) for the three months ended March 31, 2024. Compensation expense was $22,709 (consisting of approximately $7.8 million of cash compensation and benefits and approximately $14.9 million of non-cash compensation) for the three months ended March 31, 2023. The decrease in compensation expense for the three months ended March 31, 2024 compared to the same period in 2023 was primarily related to decreases in personnel and compensation in executive, marketing, sales and operations departments as a result of the synergies realized as a result of the integration of the acquisitions from 2022. The decrease in compensation expense for the three months ended March 31, 2024 compared to the same period in 2023 was partially offset due to compensation expense of $520 in conjunction with the acquisition of Envoy in April 2023.

Current wording

Compensation expense decreased by $20,336, or 54%, to $17,654 (consisting of approximately $16,700 of cash compensation and benefits and approximately $1,000 of non-cash compensation) for the three months ended June 30, 2024. Compensation expense was $37,990 (consisting of approximately $26,300 of cash compensation and benefits and approximately $11,700 of non-cash compensation) for the three months ended June 30, 2023. The decrease in compensation expense for the three months ended June 30, 2024 compared to the same period in 2023 was primarily related to decreases in personnel and compensation in executive, marketing, sales and operations departments as a result of cost savings and synergies realized. Also contributing to the decrease was the recording during the three months ended June 30, 2023 of compensation expense for (1) non-cash stock-based compensation of approximately $5,500 related to the accelerated vesting of equity award grants and additional stock-based compensation associated with the resignation of our former Chief Executive Officer pursuant to the terms of his Executive Chairman and CEO Employment Agreement, dated May 28, 2021 (the “Former CEO Employment Agreement”), as set forth in the Separation and General Release Agreement, dated as of June 20, 2023, between our Company and the former Chief Executive Officer; and (2) non-recurring expenses of approximately $11,600, consisting of the non-recurring payment of approximately $6,100 to our former Chief Executive Officer pursuant to the Former CEO Employment Agreement and non-recurring bonus expense of $5,500 related to the achievement of key performance milestones by our Chief Technology Officer under his employment agreement, dated April 12, 2021.

Previous wording

General and administrative expenses decreased by $701, or 8%, to $7,777 for the three months ended March 31, 2024 as compared to $8,478 for the three months ended March 31, 2023. The decrease was primarily attributable to decreases in external consulting, software licensing and investor/public relations expenditures of $1,054 partially offset by increases in accounting, legal, and other professional service expenditures of $1,171. Further, general and administrative expenses decreased due to a decrease in amortization expense of $706.

Current wording

General and administrative expenses decreased by $2,472, or 24%, to $8,003 for the three months ended June 30, 2024 as compared to $10,475 for the three months ended June 30, 2023. The decrease was primarily attributable to decreases in accounting, marketing, recruiting, software licensing, investor/public relations and bad debt expenditures of $1,341 partially offset by increases in legal and external consulting/other professional service expenditures of $676. Further, general and administrative expenses decreased due to a decrease in amortization expense of $1,114.

Previous wording

Other operating expenses increased by $2,243 or 53%, to $6,438 for the three months ended March 31, 2024 from $4,195 for the three months ended March 31, 2023. The increase was primarily attributable to increases in software and website expenses, rent, hardware and software development costs and property/use tax expenditures of $1,421. Further, decreases in travel expenses of $222, partially offset the increase in other operating expenses for three months ended March 31, 2024 compared to the same period in 2023. Also contributing to the increase in other operating expenses were operating expenditures of $542 related to the acquisition of Envoy in April 2023.

Current wording

Other operating expenses increased by $42, or 1%, to $4,958 for the three months ended June 30, 2024 from $4,916 for the three months ended June 30, 2023. The increase was primarily attributable to increases in software and website expenses and property/use tax expenditures of $65. Also contributing to the increase for the three months ended June 30, 2024 compared to the same period was the return of an escrow deposit of $922 which was recorded as a reduction in other operating expenses for the three months ended June 30, 2023. Further, decreases in travel, insurance, rent, hardware and software development costs of $812, partially offset the increase in other operating expenses for three months ended June 30, 2024 compared to the same period in 2023.

Previous wording

The Company recorded a loss on change in fair value of consideration payable related to the Envoy acquisition of $1,700 in the 2024 period due to the change in the inputs to the probability-weighted discounted cash flow model. There was no such amount recognized in the 2023 period.

Current wording

The Company recorded a loss on change in fair value of consideration payable related to the Envoy acquisition of $747 in the 2024 period due to the change in the inputs to the probability-weighted discounted cash flow model. There was no such amount recognized in the 2023 period.

Previous wording

We recorded other income of $308 during the three months ended March 31, 2024 as compared to other income of $1,250 for the three months ended March 31, 2023. The change was primarily due a loss on foreign exchange of $30 in the 2024 period as compared to a gain on foreign exchange of $1,807 in the 2023 period. This was partially offset by an increase in dividend and interest income of $713 as compared to the 2023 period.

Current wording

We recorded other income of $754 during the three months ended June 30, 2024 as compared to other expense of $(186) for the three months ended June 30, 2023. The increase in other income was primarily due to an increase of $217 related to dividend and interest income, partially offset by an decrease in interest expense of $740 compared to the 2023 period.

Previous wording

Our net loss for the three months ended March 31, 2024 decreased by $12,628, or 42%, to $17,173 as compared to $29,801 for the three months ended March 31, 2023. The decrease was primarily attributable to an decrease in operating expenses, and an increase in gross profit.

Current wording

Our net loss for the three months ended June 30, 2024 decreased by $21,423, or 52%, to $20,859 as compared to $41,482 for the three months ended June 30, 2023. The decrease was primarily attributable to an decrease in operating expenses, partially offset by an increase in gross profit.

Previous wording

Our total comprehensive loss for the three months ended March 31, 2024 was $18,410 whereas our total comprehensive loss for the three months ended March 31, 2023 was $30,651.

Current wording

Our total comprehensive loss for the three months ended June 30, 2024 was $20,459 whereas our total comprehensive loss for the three months ended June 30, 2023 was $40,337.

Previous wording

Revenue from product sales was $27,508 for the three months ended March 31, 2024 as compared to $16,389 during the three months ended March 31, 2023, an increase of $11,119, or 68%. This increase was attributable to increased sales of commercial chargers, DC fast chargers and residential chargers when compared to the same period in 2023.

Current wording

Revenue from product sales was $51,090 for the six months ended June 30, 2024 as compared to $40,976 during the six months ended June 30, 2023, an increase of $10,114, or 25%. This increase was attributable to increased sales of commercial chargers, DC fast chargers and residential chargers when compared to the same period in 2023.

Previous wording

We measure our liquidity in a number of ways, including the following:

Current wording

We measure our liquidity in several ways, including the following:

Previous wording

During the three months ended March 31, 2024, we financed our activities from proceeds derived from equity financings occurring in prior periods. A significant portion of the funds raised from the sale of capital stock has been used to cover working capital needs and personnel, office expenses and various consulting and professional fees.

Current wording

During the six months ended June 30, 2024, we financed our activities from proceeds derived from equity financings occurring in prior periods. A significant portion of the funds raised from the sale of capital stock has been used to cover working capital needs and personnel, office expenses and various consulting and professional fees.

Previous wording

For the three months ended March 31, 2024 and 2023, we used cash of $21,476 and $24,177, respectively, in operations. Our cash use for the three months ended March 31, 2024 was primarily attributable to our net loss of $17,173 adjusted for net non-cash expenses in the aggregate amount of $7,737, plus $12,040 of net cash used in changes in the levels of operating assets and liabilities. Our cash use for the three months ended March 31, 2023 was primarily attributable to our net loss of $29,801, adjusted for net non-cash expenses in the aggregate amount of $11,915, and $6,291 of cash used to fund changes in the levels of operating assets and liabilities.

Current wording

For the six months ended June 30, 2024 and 2023, we used cash of $25,735 and $65,040, respectively, in operations. Our cash use for the six months ended June 30, 2024 was primarily attributable to our net loss of $37,232, adjusted for net non-cash expenses in the aggregate amount of $15,163, partially offset by $3,666 of net cash provided by changes in the levels of operating assets and liabilities. Our cash use for the six months ended June 30, 2023 was primarily attributable to our net loss of $71,283, adjusted for net non-cash expenses in the aggregate amount of $28,564, partially offset by $22,321 of net cash provided by changes in the levels of operating assets and liabilities.

Previous wording

During the three months ended March 31, 2024, net cash used in investing activities was $2,830 which was used to purchase charging stations and other fixed assets. During the three months ended March 31, 2023, net cash used in investing activities was $2,215, of which $1,665 was used to purchase charging stations and other fixed assets and $550 related to the capitalization of certain engineering costs.

Current wording

During the six months ended June 30, 2024, net cash used in investing activities was $8,739, of which, $8,584 was used to purchase charging stations and other fixed assets and $155 related to the capitalization of certain engineering costs. During the six months ended June 30, 2023, net cash used in investing activities was $10,833, of which $5,647 was used to purchase charging stations and other fixed assets, $4,660 was used as cash consideration for Envoy (net of cash acquired) and $526 related to the capitalization of certain engineering costs.

Previous wording

During the three months ended March 31, 2024, cash used in financing activities was $6,703, of which, $31,354 was used to pay down notes payable, $169 was used to pay down our liability in connection with a finance lease and $250 was used to pay down our liability in connection with internal use software, partially offset by $25,070 provided by offering proceeds related to the sale of common stock. During the three months ended March 31, 2023, cash provided by financing activities was $95,360, of which, $94,766 was provided by offering proceeds related to the sale of common stock, $835 was provided by the exercise of options and warrants, offset by $92 used to pay down our liability in connection with a finance lease and $149 used to pay down our liability in connection with internal use software.

Current wording

During the six months ended June 30, 2024, cash used in financing activities was $13,472, of which, $37,881 was used to pay down notes payable, $375 was used to pay down our liability in connection with a finance lease and $286 was used to pay down our liability in connection with internal use software, partially offset by $25,070 provided by offering proceeds related to the sale of common stock. During the six months ended June 30, 2023, cash provided by financing activities was $112,426, of which, $113,254 was provided by offering proceeds related to the sale of common stock, $835 was provided by the exercise of options and warrants, offset by $1,443 used to pay down our liability in connection with a finance lease and $220 used to pay down our liability in connection with internal use software.