Revenue Performance - Total net revenue decreased by $2,708, or 77%, from $3,495 for the three months ended June 30, 2023, to $787 for the three months ended June 30, 2024[103]. - Mobility revenues decreased by $1,314, or 78%, from $1,694 for the three months ended June 30, 2023, to $380 for the three months ended June 30, 2024[104]. - Media revenues decreased by $1,514, or 100%, from $1,521 for the three months ended June 30, 2023, to $7 for the three months ended June 30, 2024[106]. Operating Expenses - Total operating expenses decreased by $33,399, or 93%, from $35,897 for the three months ended June 30, 2023, to $2,498 for the three months ended June 30, 2024[101]. - General and administrative expenses decreased by $4,029, or 77%, from $5,239 for the three months ended June 30, 2023, to $1,210 for the three months ended June 30, 2024[111]. - Sales and marketing expenses decreased by $614, or 66%, from $925 for the three months ended June 30, 2023, to $311 for the three months ended June 30, 2024[113]. - Cost of revenue decreased by $11,545, or 92%, from $12,522 for the three months ended June 30, 2023, to $977 for the three months ended June 30, 2024[109]. Strategic Actions - The company closed multiple locations in Italy and the United States as part of its strategy to reduce operating cash[105]. - The company expects additional revenues from an agreement with Everli S.p.A. for software development services during 2024[108]. - The company reclassified IT expenses from research and development to cost of revenues, impacting reported expenses for the periods[115]. Financial Income and Expenses - Non-operating income (expense), net decreased by 109% or $1,944 from $(1,783) for the three months ended June 30, 2023, to $161 for the three months ended June 30, 2024[117]. - Interest expenses decreased by $1,025, or 55%, from $1,865 for the three months ended June 30, 2023, to $840 for the three months ended June 30, 2024[118]. - Gain on extinguishment of financial debts amounted to $822 for the six months ended June 30, 2024, primarily from the settlement of an unsecured note and a conversion agreement[119]. - SEPA financial expenses, net decreased by $2,601, or 96%, from $2,703 for the six months ended June 30, 2023, to $102 for the six months ended June 30, 2024[120]. - Other income (expenses), net increased by $761, or 521%, from $146 for the three months ended June 30, 2023, to $907 for the three months ended June 30, 2024[121]. Financial Position - Total financial liabilities, net increased by 10% or $1,542 from $15,370 as of December 31, 2023, to $16,912 as of June 30, 2024[134]. - As of June 30, 2024, cash and cash equivalents were $162, indicating a need for additional capital to fund operations and expansion[131]. - The Company has outstanding principal of $1,638 related to a related-party promissory note as of June 30, 2024[146]. - The Company recorded accruals for legal contingencies of $5,829 as of June 30, 2024, compared to $3,978 as of December 31, 2023[150]. - Future annual minimum lease payments total $824 as of June 30, 2024[138]. Legal Contingencies - As of June 30, 2024, the company recorded $41 in general and administrative expenses for legal contingencies, compared to $365 in the same period of 2023[152]. - The range of loss for the company's legal contingencies accrued is between $660 million to $10,033 million, reflecting amounts settled and claimed, excluding insurance coverage[153]. - The company has recorded $2,250 million as legal contingencies for a specific claim related to a breach of contract lawsuit[152]. - The company is involved in claims where potential losses are estimated between $0 to $3,050 million, which are not considered reasonably estimable[153]. - A status conference regarding a significant lawsuit is scheduled for September 2024, with ongoing settlement discussions[152]. Accounting and Compliance - The company qualifies as an "emerging growth company" and has opted to use an extended transition period for complying with new accounting standards[156]. - There are no off-balance sheet arrangements currently in place for the company[157]. - The company did not identify any critical accounting estimates that would materially impact its financial condition or results of operations[155]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that may affect reported amounts[154]. - The company is involved in various lawsuits related to the classification of individuals as independent contractors rather than employees[152].
HELBIZ(HLBZ) - 2024 Q2 - Quarterly Report