Getaround(US:GETR)2024-11-14 14:00Company Overview - As of September 30, 2024, Getaround's platform supports approximately 2.2 million unique guests and has around 66,000 active cars in over 1,000 cities across 8 countries[148]. - The Company incurred cumulative losses from inception through September 30, 2024, and expects to continue incurring losses for the foreseeable future[161]. - Getaround's revenue model includes fees charged to guests and subscriptions charged to hosts, with a significant majority of revenue depending on Powerhosts, defined as hosts with three or more active cars[163]. Financial Performance - Total Revenues for Q3 2024 were $22.387 million, a decrease of 5.9% from $23.799 million in Q3 2023[190]. - Net Loss for Q3 2024 was $15.524 million, compared to a net loss of $27.346 million in Q3 2023[190]. - Comprehensive Loss for Q3 2024 was $3.141 million, significantly improved from a comprehensive loss of $13.829 million in Q3 2023[190]. - Total revenues for the nine months ended September 30, 2024, increased by $4.2 million, or 8%, to $58.1 million compared to $53.9 million in the same period of 2023[231]. - Loss from operations improved to $(63.1) million for the nine months ended September 30, 2024, compared to $(74.1) million in the prior year[234]. Revenue Breakdown - Service Revenue accounted for 99% of Total Revenues in Q3 2024, down from 98% in Q3 2023[192]. - Service revenue rose by $4.4 million, or 8%, primarily due to incremental revenue from the 2023 Business Combination, despite a suspension of operations in New York State[232]. - Lease revenue decreased by $0.2 million, or 21%, mainly due to the suspension of operations in New York State[233]. Expenses - Sales and Marketing expenses increased to $5.197 million in Q3 2024, representing 23% of Total Revenues compared to 17% in Q3 2023[192]. - Operations and Support expenses were $15.255 million in Q3 2024, accounting for 68% of Total Revenues, down from 71% in Q3 2023[192]. - General and administrative expenses decreased by $1.7 million, or 4%, primarily due to a reduction in bad debt and office-related expenses[240][242]. Cash Flow and Financing - Cash and cash equivalents as of September 30, 2024, totaled $30.8 million, consisting of institutional money market funds and similar instruments[269]. - Net cash provided by financing activities was $60.9 million during the nine months ended September 30, 2024, primarily from the issuance of the Mudrick Super Priority Note[277]. - Cash flows used in operating activities for the nine months ended September 30, 2024, were $44.8 million, compared to $44.0 million in 2023[274]. Market and Operational Challenges - The Company has experienced a delisting from the NYSE effective August 16, 2024, due to not meeting the continued listing standard of maintaining an average global market capitalization of at least $15 million[160]. - The company expects to incur additional losses for the foreseeable future, impacting its ability to fund operations beyond current cash reserves[271]. - The company has sought additional sources of capital due to insufficient funds to continue operations as a going concern[270]. Valuation and Fair Value - The fair value of the company's common stock was determined using an option pricing method (OPM) that incorporates both income and market approaches, weighted by the probability of a business combination transaction or remaining private[286]. - The fair value of the warrant liability was estimated using a Black-Scholes calculation and the OPM, reflecting potential initial public offering scenarios and alternative exit events[289]. - Significant unobservable inputs for the common stock warrants included projected future cash flows, timing of potential events, and discount rates, which could materially affect estimated fair value[290]. Internal Controls and Compliance - As of September 30, 2024, the company's disclosure controls and procedures were deemed ineffective due to material weaknesses in internal control over financial reporting[295]. - The company has not reported any material changes in its controls and procedures since the last Annual Report[296].