Revenue and Operations - For the year ended December 31, 2024, the Company reported revenue of $1,422,000 from continuing operations, a shift from micromobility and media services to IT software services [81]. - Total revenues from discontinued operations decreased by $8,352, or 85%, from $9,844,000 in 2023 to $1,493,000 in 2024, primarily due to the exit from mobility and media operations [89]. - The Company has suspended its mobility operations in the United States and reduced operations in Europe due to high costs and cash burn [75]. Expenses and Losses - Cost of revenues from continuing operations amounted to $1,114,000, with personnel-related costs representing 93% of this total [92]. - General and administrative expenses from continuing operations decreased by $15,371, or 85%, from $17,982,000 in 2023 to $2,611,000 in 2024 [100]. - The Company recorded a net loss from continuing operations of $2,364,000 for the year ended December 31, 2024, compared to a loss of $18,876,000 in 2023 [82]. - Total operating expenses from discontinued operations decreased by $48,965, or 91%, from $53,916,000 in 2023 to $4,951,000 in 2024 [83]. - Sales and marketing expenses from discontinued operations decreased by $2,205, or 78%, from $2,837,000 in 2023 to $632,000 in 2024 [104]. Financial Liabilities and Defaults - As of December 31, 2024, the company had total financial liabilities of $23,851, an increase of 55% or $8,480 from $15,371 in 2023 [121]. - The company is in default for non-payment under the terms of the Secured Convertible loan and Unsecured loans, with a judgment against it for approximately $2,454 [122]. - As of December 31, 2024, the Company has $6,298 outstanding as principal and accumulated interests, and it was in default for non-payment under the terms of the Secured Loan Agreement [136]. Gains and Income - The company recorded a gain of $85 from the early termination of the New York store lease, resulting in a write-off of leasehold improvements amounting to $937 [106]. - The gain on extinguishment of financial debts was $822 in 2024, compared to $11,405 in 2023, with the 2023 gain related to a secured loan settlement [109]. - The company recognized a gain of $7,008 from the extinguishment of certain outstanding accounts payable, primarily from settlements with vendors [114]. - Non-operating income from discontinued operations increased by 1,465% or $13,077, from an income of $893 in 2023 to $13,970 in 2024 [113]. Strategic Agreements and Changes - The Company entered into a Service Agreement with Everli S.p.A. for software development services, marking a strategic shift in its core business [73]. - The company entered into a Stock Purchase Agreement with Palella Holdings LLC to sell 100% of the equity interest of its European entities, pending court approval [125]. - During the year ended December 31, 2024, the Company fully repaid convertible debt totaling $3,741, including $3,619 to Palella Holdings LLC and $122 to YA II PN, Ltd. [138]. Legal and Contingencies - As of December 31, 2023, the Company recorded Accruals for legal contingencies of $3,978, with $1,711 related to Wheels classified as Liabilities from discontinued operations [149]. - The Company was awarded a summary judgment for $2,454 related to an overdue unsecured note issued in July 2022 [150]. - During the year ended December 31, 2024, the Company released $2,250 previously accrued for a claim with a former investor who withdrew a claim for $4,000 [151]. Other Financial Information - Total non-operating income (expense), net from continuing operations decreased by 101% or $1,190, from an income of $1,176 in 2023 to an expense of $14 in 2024 [107]. - Interest expenses decreased by $2,650, or 46%, from $5,718 in 2023 to $3,068 in 2024, primarily due to a reduction in financial liabilities [108]. - The Lease Assignment agreement with Revolving Store Inc. resulted in a gain of $85 for the Company, with derecognition of Operating Lease liabilities amounting to $643 [139]. - The Company had $86 of overdue monthly rents for the period from February 2024 to July 2024, assumed by the new tenant, Revolving Store Inc. [139]. - Board members converted deferred salaries totaling $69 into 1,062 Warrants to purchase shares of Class A Common Stock [144]. - The former CEO converted $78 of deferred salaries into 87 shares of Class A Common Stock during the year ended December 31, 2023 [140]. - The Company recorded $56 as Cost of Revenues from discontinued operations for shipping services provided by a related party [143].
Micromobility.com (MCOM) - 2024 Q4 - Annual Report