Blink Charging Co. [BLNK] Filings

10-Q 1 form10-q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________

Commission File No. 001-38392

BLINK CHARGING CO.

(Exact name of registrant as specified in its charter)

Nevada		03-0608147
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

605 Lincoln Road, 5^thFloor
Miami Beach, Florida		33139-3024
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (305) 521-0200

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock	BLNK	The NASDAQ Stock Market LLC
Common Stock Purchase Warrants	BLNKW	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of August 5, 2022, the registrant had 50,843,466 shares of common stock outstanding.

BLINK CHARGING CO. AND SUBSIDIARIES

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2022

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION	1

Item 1. Financial Statements.	1

Condensed Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021	1

Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021	2

Unaudited Condensed Consolidated Statements of Comprehensive Loss for the Three and Six Months Ended June 30, 2022	3

Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2022	4

Unaudited Condensed Consolidated Statement of Changes in Stockholders’ Equity for the Three and Six Months Ended June 30, 2021	5

Unaudited Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	6

Notes to Unaudited Condensed Consolidated Financial Statements	8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.	23

Item 3. Quantitative and Qualitative Disclosures About Market Risk.	35

Item 4. Controls and Procedures.	35

PART II - OTHER INFORMATION	36

Item 1. Legal Proceedings.	36

Item 1A. Risk Factors.	36

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.	36

Item 3. Defaults Upon Senior Securities.	36

Item 4. Mine Safety Disclosures.	36

Item 5. Other Information.	36

Item 6. Exhibits.	37

SIGNATURES	38

PART 1 – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except for share amounts)


	June 30, 2022			December 31, 2021
		(unaudited)

Assets
Current Assets:
Cash and cash equivalents	$	85,136		$	174,795
Current portion of restricted cash		4,058			-
Accounts receivable, net		14,894			6,346
Inventory, net		17,527			10,369
Prepaid expenses and other current assets		2,560			1,020

Total Current Assets		124,175			192,530
Restricted cash, non-current portion		72			81
Property and equipment, net		22,950			14,563
Operating lease right-of-use asset		2,809			1,664
Intangible assets, net		75,412			3,455
Goodwill		156,092			19,390
Other assets		1,997			230
Total Assets	$	383,507		$	231,913

Liabilities and Stockholders’ Equity

Current Liabilities:
Accounts payable	$	16,364		$	7,134
Accrued expenses and other current liabilities		8,953			5,678
Current portion of consideration payable		4,058			-
Current portion of operating lease liabilities		1,430			547
Current portion of deferred revenue		7,794			2,858
Notes payable		775			10

Total Current Liabilities		39,374			16,227
Contingent consideration		3,514			-
Consideration payable, non-current portion		40,600			-
Operating lease liabilities, non-current portion		1,875			1,531
Deferred revenue, non-current portion		4,236			128
Other liabilities		1,316			193

Total Liabilities		90,915			18,079

Commitments and contingencies (Note 11)		-			-

Stockholders’ Equity:
Common stock, $0.001 par value, 500,000,000 shares authorized, 50,201,686 and 42,423,514
shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		50			42
Common stock, $0.001 par value, 500,000,000 shares authorized, 50,201,686 and 42,423,514 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		50			42
Additional paid-in capital		577,438			458,046
Accumulated other comprehensive loss		(4,662	)		(1,784	)
Accumulated deficit		(280,234	)		(242,470	)

Total Stockholders’ Equity		292,592			213,834

Total Liabilities and Stockholders’ Equity	$	383,507		$	231,913

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except for share and per share amounts)

(unaudited)


	For The Three Months Ended						For The Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021

Revenues:
Product sales	$	8,828		$	3,267		$	16,880		$	4,938
Charging service revenue - company-owned charging stations		1,494			586			2,601			768
Network fees		472			106			633			216
Warranty		99			19			166			31
Grant and rebate		125			74			200			224
Ride-sharing services		279			189			518			235
Other		189			114			288			175

Total Revenues		11,486			4,355			21,286			6,587

Cost of Revenues:
Cost of product sales		6,369			2,365			12,471			3,483
Cost of charging services - company-owned charging stations		351			60			534			110
Host provider fees		821			140			1,372			267
Network costs		182			94			416			173
Warranty and repairs and maintenance		523			196			634			457
Ride-sharing services		659			424			1,085			670
Depreciation and amortization		624			432			1,231			687

Total Cost of Revenues		9,529			3,711			17,743			5,847

Gross Profit		1,957			644			3,543			740

Operating Expenses:
Compensation		10,779			9,170			20,038			13,918
General and administrative expenses		9,002			2,532			13,429			4,117
Other operating expenses		4,138			1,287			7,080			2,437

Total Operating Expenses		23,919			12,989			40,547			20,472

Loss From Operations		(21,962	)		(12,345	)		(37,004	)		(19,732	)

Other (Expense) Income:
Interest (expense) income		(139	)		(6	)		(139	)		9
Loss on settlement		-			(1,000	)		-			(1,000	)
Loss on foreign exchange		(244	)		(108	)		(241	)		(108	)
Change in fair value of derivative and other liabilities		(73	)		(1	)		(73	)		7
Other (expense) income		(203	)		1			(307	)		1

Total Other Expense		(659	)		(1,114	)		(760	)		(1,091	)

Net Loss	$	(22,621	)	$	(13,459	)	$	(37,764	)	$	(20,823	)
Net Loss Per Share:
Basic	$	(0.52	)	$	(0.32	)	$	(0.88	)	$	(0.50	)
Diluted	$	(0.52	)	$	(0.32	)	$	(0.88	)	$	(0.50	)

Weighted Average Number of
Common Shares Outstanding:
Basic		43,509,693			42,037,492			42,973,758			41,587,793
Diluted		43,509,693			42,037,492			42,973,758			41,587,793

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Loss

(in thousands)

(unaudited)


	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021

Net Loss	$	(22,621	)	$	(13,459	)	$	(37,764	)	$	(20,823	)
Other Comprehensive (Loss) Income:
Cumulative translation adjustments		(2,272	)		(388	)		(2,878	)		(388	)
Change in fair value of marketable securities		-			13			-			(43	)

Total Comprehensive Loss	$	(24,893	)	$	(13,834	)	$	(40,642	)	$	(21,254	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Statement of Changes in Stockholders’ Equity

For the Three and Six Months Ended June 30, 2022

(in thousands, except for share amounts)

(unaudited)


							Accumulated
					Additional		Other						Total
	Common Stock				Paid-In		Comprehensive			Accumulated			Stockholders’
	Shares		Amount		Capital		Loss			Deficit			Equity

Balance - January 1, 2022		42,423,514	$	42	$	458,046	$	(1,784	)	$	(242,470	)	$	213,834

Common stock issued upon exercises of warrants		16,811		-		69		-			-			69

Stock-based compensation		144,497		1		1,932		-			-			1,933

Other comprehensive loss		-		-		-		(606	)		-			(606	)

Net loss		-		-		-		-			(15,143	)		(15,143	)

Balance - March 31, 2022		42,584,822		43		460,047		(2,390	)		(257,613	)		200,087

Stock-based compensation		-		-		686		-			-			686

Common stock issued as purchase consideration of SemaConnect		7,454,975		7		113,830		-			-			113,837

Common stock issued as purchase consideration of Electric Blue		152,803		-		2,852		-			-			2,852

Common stock issued upon exercise of warrants		3,131		-		13		-			-			13

Common stock issued upon exercise of options		5,955		-		10		-			-			10

Other comprehensive loss		-		-		-		(2,272	)		-			(2,272	)

Net loss		-		-		-		-			(22,621	)		(22,621	)

Balance - June 30, 2022		50,201,686	$	50	$	577,438	$	(4,662	)	$	(280,234	)	$	292,592

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Statement of Changes in Stockholders’ Equity

For the Three and Six Months Ended June 30, 2021

(in thousands, except for share amounts)

(unaudited)

								Accumulated
					Additional			Other						Total
	Common Stock				Paid-In			Comprehensive			Accumulated			Stockholders’
	Shares		Amount		Capital			Loss			Deficit			Equity

Balance - January 1, 2021		35,951,097	$	36	$	214,479		$	-		$	(187,351	)	$	27,164

Common stock issued in public offering, net of issuance costs [1]		5,660,000		6		221,400			-			-			221,406

Common stock issued upon exercise of warrants		239,202		-		999			-			-			999

Common stock issued upon cashless option exercise		15,522		-		-			-			-			-

Common stock issued upon cashless warrant exercise		66,000		-		-			-			-			-

Common stock issued as consideration for property and equipment		13,123		-		600			-			-			600

Stock-based compensation		470		-		419			-			-			419

Other comprehensive loss		-		-		-			(56	)		-			(56	)

Net loss		-		-		-			-			(7,365	)		(7,365	)

Balance - March 31, 2021		41,945,414	$	42	$	437,897		$	(56	)	$	(194,716	)	$	243,167
Beginning balance		41,945,414	$	42	$	437,897		$	(56	)	$	(194,716	)	$	243,167

Issuance costs related to common stock issued in public offering		-		-		(73	)		-			-			(73	)

Common stock issued pursuant to cashless option exercise		22,974		-		-			-			-			-

Common stock issued upon exercise of warrants		102,684		-		428			-			-			428

Common stock issued as purchase consideration of Blue Corner		32,382		-		790			-			-			790

Stock-based compensation		36,691		-		3,523			-			-			3,523

Other comprehensive loss		-		-		-			(375	)		-			(375	)

Net loss		-		-		-			-			(13,459	)		(13,459	)

Balance - June 30, 2021		42,140,145	$	42	$	442,565		$	(431	)	$	(208,175	)	$	234,001
Ending balance		42,140,145	$	42	$	442,565		$	(431	)	$	(208,175	)	$	234,001

[1]

Includes gross proceeds of $232,060, less issuance costs of $10,654.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	For The Six Months Ended
	June 30,
	2022			2021
Cash Flows From Operating Activities:
Net loss	$	(37,764	)	$	(20,823	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		3,393			1,945
Non-cash lease expense		215			-
Dividend and interest income		-			(62	)
Change in fair value of derivative and other liabilities		73			7
Provision for bad debt		798			253
Provision for slow moving and obsolete inventory		161			-
Stock-based compensation:
Common stock		962			1,139
Options		2,027			2,945
Changes in operating assets and liabilities:
Accounts receivable		(2,728	)		(1,803	)
Inventory		(8,105	)		(3,373	)
Prepaid expenses and other current assets		4,270			(1,220	)
Other assets		(1,339	)		245
Accounts payable, accrued expenses and other current liabilities		4,491			(283	)
Other liabilities		50			-
Lease liabilities		(146	)		(177	)
Deferred revenue		2,656			262

Total Adjustments		6,778			(122	)

Net Cash Used In Operating Activities		(30,986	)		(20,945	)

Cash Flows From Investing Activities:
Proceeds from sale of marketable securities		-			4,553
Purchase consideration of SemaConnect, net of cash and restricted cash acquired		(38,338	)		-
Purchase consideration of Electric Blue, net of cash acquired		(11,360	)		-
Purchase of marketable securities		-			(58,013	)
Capitalization of engineering costs paid		(288	)		(237	)
Cash acquired in the purchase of Blue Corner		-			243
Purchase consideration of Blue Corner		-			(22,985	)
Purchases of property and equipment		(2,247	)		(5,019	)

Net Cash Used In Investing Activities		(52,233	)		(81,458	)

Cash Flows From Financing Activities:
Proceeds from sale of common stock in public offering [1]		-			221,333
Proceeds from exercise of options and warrants		92			1,427
Repayment of financing liability in connection with finance lease		(71	)		-
Repayment of financing liability in connection with internal use software		(235	)		(39	)

Net Cash (Used In) Provided By Financing Activities		(214	)		222,721

Effect of Exchange Rate Changes on Cash and Cash Equivalents and Restricted Cash		(2,350	)		(606	)

Net (Decrease) Increase In Cash and Cash Equivalents and Restricted Cash		(85,783	)		119,712

Cash and Cash Equivalents and Restricted Cash - Beginning of Period		175,049			22,418

Cash and Cash Equivalents and Restricted Cash - End of Period	$	89,266		$	142,130

Cash and cash equivalents and restricted cash consisted of the following:
Cash and cash equivalents	$	85,136		$	142,053
Restricted cash		4,130			77
	$	89,266		$	142,130

[1]

Includes gross proceeds of $232,060, less issuance costs of $10,727.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows — Continued

(in thousands)

(unaudited)

	For The Six Months Ended
	June 30,
	2022			2021
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	-		$	-
Income taxes	$	20		$	-
Non-cash investing and financing activities:
Common stock issued as consideration for property and equipment	$	-		$	600
Common stock issued as purchase consideration of SemaConnect	$	113,837		$	-
Common stock issued as purchase consideration of Electric Blue	$	2,852		$	-
Common stock issued as purchase consideration of Blue Corner	$	-		$	790
Interest expense converted into principal	$	-		$	2
Right of use assets obtained in exchange for operating lease liabilities	$	258		$	1,358
Assets obtained in exchange for lease obligations	$	931		$	-
Change in fair value of marketable securities	$	-		$	(43	)
Intangible assets obtained in exchange for financing liability	$	660		$	-
Transfer of inventory to property and equipment	$	(2,024	)	$	(868	)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

BLINK CHARGING CO. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands, except for share and per share amounts)

1. BUSINESS ORGANIZATION, NATURE OF OPERATIONS, BASIS OF PRESENTATION AND RISKS AND UNCERTAINTIES

Organization and Operations

Blink Charging Co., through its wholly-owned subsidiaries (collectively, the “Company” or “Blink”), is a leading owner, operator, and provider of electric vehicle (“EV”) charging equipment and networked EV charging services. Blink offers residential and commercial EV charging equipment, 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 Network”) and Blink EV charging equipment, also known as electric vehicle supply equipment (“EVSE”) and other EV-related services. The Blink Network provides property owners, managers, parking companies, and state and municipal entities (“Property Partners”) with cloud-based services that enable the remote monitoring and management of EV charging stations. The Blink Network also provides EV drivers with vital station information, including station location, availability and fees. Blink also operates a ride-sharing program through the Company’s wholly owned subsidiary, BlueLA Rideshare, LLC and the City of Los Angeles which allows customers the ability to rent EVs through a subscription service.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of June 30, 2022 and for the six months then ended. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the operating results for the full year ending December 31, 2022 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures of the Company as of December 31, 2021 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on March 16, 2022 as part of the Company’s Annual Report on Form 10-K.

Risks and Uncertainties

The Covid-19 pandemic has impacted global stock markets and economies. The Company closely monitors the impact of the continuing presence of Covid-19 and multiple Covid-19 variants. The Company has taken and continues to take precautions to ensure the safety of its employees, customers and business partners, while assuring business continuity and reliable service and support to its customers. The Company continues to receive orders for its products, although some shipments of equipment have been temporarily delayed. The global chip shortage and supply chain disruption has caused some delays in equipment orders from its contract manufacturer. As federal, state and local economies begin to return to pre-pandemic levels, the Company expects demand for charging station usage to increase, however, the Company is unable to predict the extent of such recovery due to the uncertainty of Covid-19. As a result, the Company is unable to predict the ultimate impact of equipment order delays, chip shortage and continuous presence of Covid-19 will have on its business, future results of operations, financial position, or cash flows.

BLINK CHARGING CO. AND SUBSIDIARIES

Notes to Unaudited Condensed Consolidated Financial Statements

(in thousands, except for share and per share amounts)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Since the Annual Report for the year ended December 31, 2021, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note.

FOREIGN CURRENCY TRANSLATION

The Company’s reporting currency is the United States dollar. The functional currency of certain subsidiaries is the Euro and the Indian Rupee. Assets and liabilities are translated based on the exchange rates at the balance sheet date (1.043 for the Euro, 0.0127 for the Indian Rupee, and 1.214 for the Pound Sterling as of June 30, 2022), while expense accounts are translated at the weighted average exchange rate for the period (1.0554 for the Euro, 0.0127 for the Indian Rupee, and 1.2281 for the Pound Sterling for the six months ended June 30, 2022). Equity accounts are translated at historical exchange rates. The resulting translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income. Comprehensive income (loss) is defined as the change in equity of an entity from all sources other than investments by owners or distributions to owners and includes foreign currency translation adjustments as described above. Transaction gains and losses are charged to the statement of operations as incurred. Transaction losses attributable to foreign exchange were $244 and $241 during the three and six months ended June 30, 2022, respectively. Transaction losses attributable to foreign exchange were $108 during the three and six months ended June 30, 2021.

REVENUE RECOGNITION

The Company recognizes revenue primarily from five different types of contracts:

●	Product sales – Revenue is recognized at the point where the customer obtains control of the goods and the Company satisfies its performance obligation, which generally is at the time it ships the product to the customer or upon installation of chargers for which the Company is contracted to perform.
●	Charging service revenue – company-owned charging stations - Revenue is recognized at the point when a particular charging session is completed.
●	Network fees and other – Represents a stand-ready obligation whereby the Company is obligated to perform over a period of time and, as a result, revenue is recognized on a straight-line basis over the contract term. Network fees are billed annually.
●

Blink Charging Co. [BLNK] Filings
Blink Charging Co. [BLNKW] Filings
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-16]
10-Q	[2021-11-12]
10-Q	[2021-08-13]
10-Q	[2021-05-13]
10-K	[2021-03-31]
10-Q	[2020-11-13]
10-Q	[2020-08-13]
10-Q	[2020-05-13]
10-K	[2020-04-02]
10-Q	[2019-11-13]
10-Q	[2019-08-14]
10-Q	[2019-05-15]
10-K	[2019-04-01]
10-Q	[2018-11-14]
10-Q	[2018-08-13]
10-Q	[2018-05-15]
10-K	[2018-04-17]
10-Q	[2017-11-20]
10-Q	[2017-08-21]
10-Q	[2017-05-15]
10-K	[2017-04-14]
10-Q	[2016-11-21]
S-1	[2016-11-07]
10-Q	[2016-08-15]
10-Q	[2016-08-04]
10-K	[2016-07-29]
10-Q	[2016-05-23]
10-Q	[2016-04-14]
10-Q	[2016-03-30]
10-K	[2015-12-08]
10-Q	[2015-06-18]
10-Q	[2014-08-22]
10-Q	[2014-06-06]
10-K	[2014-05-05]
S-1	[2014-02-18]
10-Q	[2013-11-14]
10-Q	[2013-08-20]
10-Q	[2013-05-20]
10-K	[2013-04-16]
10-Q	[2012-11-14]
10-Q	[2012-08-14]
10-Q	[2012-05-15]
10-K	[2012-04-16]

Blink Charging Co. [BLNK] Filings

Blink Charging Co. [BLNKW] Filings