Micromobility.com (MCOM) - 2023 Q4 - Annual Report

Revenue Performance - Total net revenues decreased by $5,694, or 37$15,538 for the year ended December 31, 2022, to $9,844 for the year ended December 31, 2023[491]. - Mobility revenues decreased by$3,161, or 37%, from $8,430 for the year ended December 31, 2022, to$5,269 for the year ended December 31, 2023[515]. - Media revenues decreased by $2,532, or 39$6,507 for the year ended December 31, 2022, to $3,975 for the year ended December 31, 2023[516]. - Revenue for the year ended December 31, 2023, was$9,844 million, a decrease of 36.4% compared to $15,538 million in 2022[613]. - The Company operates in two segments: Mobility and Media, generating revenues primarily in the United States and Europe[649][650]. Expense Management - Total cost of revenues decreased by$12,650, or 30%, from $41,625 for the year ended December 31, 2022, to$28,975 for the year ended December 31, 2023[518]. - Sales and marketing expenses decreased by $5,875, or 67$8,712 for the year ended December 31, 2022, to $2,837 for the year ended December 31, 2023[496]. - Research and development expenses decreased by$302, or 11%, from $2,741 for the year ended December 31, 2022, to$2,439 for the year ended December 31, 2023[497]. - General and administrative expenses decreased by $2,652, or 10$25,569 for the year ended December 31, 2022, to $22,917 for the year ended December 31, 2023[522]. - Total operating expenses for 2023 were$73,851 million, down 16.9% from $89,037 million in 2022[613]. Financial Position - The company's total financial liabilities decreased by 62$25,048, from $40,418 in 2022 to$15,370 in 2023, indicating a significant reduction in financial exposure[556]. - Total current liabilities decreased to $48,089 million in 2023 from$70,732 million in 2022, a reduction of 32.1%[610]. - Total liabilities, including convertible preferred stock and stockholders' deficit, were $50,834 million as of December 31, 2023, down from$80,058 million in 2022, a decrease of 36.4%[610]. - The company had cash and cash equivalents of $128 as of December 31, 2023, and plans to fund operations and expansion through debt and equity financing over the next twelve months[532][533]. - The total cash and cash equivalents, and restricted cash at the end of the year was$143,000, down from $737,000 at the beginning of the year, indicating a significant decrease in liquidity[617]. Net Loss and Improvement - Net loss for the year ended December 31, 2023, was$62,055 million, compared to a net loss of $82,074 million in 2022, representing a 24.5$64,007 million in 2023, an improvement from a loss of $73,499 million in 2022[613]. - The net loss per share attributable to common stockholders for 2023 was$(42.90), compared to $(9,360.49) in 2022[613]. - The company experienced recurring operating losses and negative cash flows since inception, raising substantial doubt about its ability to continue as a going concern[646]. Gains and Settlements - A gain of$12,032 was recorded for the year ended December 31, 2023, compared to a loss of $2,065 for the year ended December 31, 2022, related to the settlement of financial debts[502]. - The company experienced a gain on extinguishment of financial debts amounting to$12,032 million in 2023, contrasting with a loss of $2,065 million in 2022[613]. Legal and Contingencies - The company recorded$2,701 in general and administrative expenses related to litigation for the year ended December 31, 2023, compared to $650 in 2022[544]. - The company’s legal contingencies accrued amounted to$3,978 as of December 31, 2023, with a potential loss range between $800 to$7,041[567][568]. Shareholder and Stock Information - The company has outstanding securities including 8,856,230 Class A Common Shares and 2,641 Warrants as of December 31, 2023[560]. - The company’s majority shareholder and CEO converted $78 of deferred salaries into 87 shares of Class A Common Stock during the year ended December 31, 2023[539]. - The company had no Series A Convertible Preferred Stock issued and outstanding as of December 31, 2023, compared to 6,751,823 shares in 2022[609]. Future Plans and Market Expansion - The company plans to continue its market expansion in the U.S., having provided e-mobility services in 34 areas as of 2023[531]. - The company plans to continue funding operations through debt and equity financing, although there is uncertainty regarding the availability of such financing on acceptable terms[621]. Accounting Policies and Standards - The company has made an accounting policy election to treat the entire consideration received from subscribers as lease rental, recognized on a straight-line basis[627]. - The Company has made an accounting policy election to present revenues net of sales taxes and VAT, impacting the reported revenue figures[654]. - The Company assesses the impact of new accounting standards, including ASU No. 2023-07, which will enhance segment disclosure requirements starting after December 15, 2023[684]. Asset Management - Intangible assets are primarily composed of operating permits and licenses, tested for impairment when qualitative indicators suggest potential impairment[679]. - The Company classifies assets and liabilities measured at fair value into Level 2 and Level 3 based on the observability of inputs, with Level 3 inputs being unobservable and significant to fair value measurements[710]. - Financial liabilities are categorized between current and non-current based on repayment terms and conditions[711].