Blink(BLNK) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION This section details the unaudited condensed consolidated financial statements and management's analysis for the period ended June 30, 2025 Financial Statements The unaudited financial statements for H1 2025 show a deteriorating financial position, with declining assets, widening losses, and a going concern doubt Unaudited Condensed Consolidated Balance Sheets This section presents the company's financial position as of June 30, 2025, highlighting decreases in assets and equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $25,318 | $41,774 | $(16,456) | | Total Current Assets | $98,500 | $141,152 | $(42,652) | | Total Assets | $168,422 | $217,988 | $(49,566) | | Total Current Liabilities | $58,009 | $59,244 | $(1,235) | | Total Liabilities | $97,670 | $99,286 | $(1,616) | | Total Stockholders' Equity | $70,752 | $118,702 | $(47,950) | | Accumulated Deficit | $(788,521) | $(735,855) | $(52,666) | Unaudited Condensed Consolidated Statements of Operations This section details the company's revenue and loss performance for the second quarter and first six months of 2025 Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Metric | Q2 2025 | Q2 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $28,667 | $33,262 | -13.8% | | Gross Profit | $2,094 | $10,713 | -80.5% | | Loss From Operations | $(32,209) | $(20,649) | +56.0% | | Net Loss | $(31,959) | $(20,059) | +59.3% | | Net Loss Per Share (Basic) | $(0.31) | $(0.20) | +55.0% | Six Months 2025 vs Six Months 2024 Statement of Operations (in thousands) | Metric | H1 2025 | H1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenues | $49,421 | $70,830 | -30.2% | | Gross Profit | $9,463 | $24,132 | -60.8% | | Loss From Operations | $(53,289) | $(38,132) | +39.8% | | Net Loss | $(52,666) | $(37,232) | +41.5% | | Net Loss Per Share (Basic) | $(0.51) | $(0.37) | +37.8% | Unaudited Condensed Consolidated Statements of Comprehensive Loss This section presents the company's comprehensive loss, including net loss and other comprehensive income items Comprehensive Loss (in thousands) | Period | Net Loss | Cumulative Translation Adjustments | Total Comprehensive Loss | | :--- | :--- | :--- | :--- | | Q2 2025 | $(31,959) | $(679) | $(32,638) | | Q2 2024 | $(20,059) | $(400) | $(20,459) | | H1 2025 | $(52,666) | $2,072 | $(50,594) | | H1 2024 | $(37,232) | $(1,637) | $(38,869) | Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity This section outlines the changes in the company's stockholders' equity during the reporting period - Total Stockholders' Equity decreased from $118.7 million at the beginning of 2025 to $70.8 million as of June 30, 2025. The decrease was primarily driven by a net loss of $52.7 million for the six-month period[18] - The company issued 681,330 shares of common stock through a public offering in the first six months of 2025, raising net proceeds of $891 thousand[18] Unaudited Condensed Consolidated Statements of Cash Flows This section summarizes the company's cash inflows and outflows from operating, investing, and financing activities Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Used In Operating Activities | $(28,524) | $(25,735) | | Net Cash Provided By (Used In) Investing Activities | $10,106 | $(3,873) | | Net Cash Provided By (Used In) Financing Activities | $874 | $(13,472) | | Net Decrease In Cash | $(16,450) | $(42,944) | | Cash at End of Period | $25,402 | $55,856 | - Cash from investing activities was positive in H1 2025 due to $13.6 million in proceeds from the sale of marketable securities, compared to a net use of cash in H1 2024[24] Notes to Unaudited Condensed Consolidated Financial Statements This section provides critical disclosures, including going concern warnings, revenue breakdowns, and subsequent events - Going Concern: The company states that its current cash and working capital are insufficient to fund future operations, raising substantial doubt about its ability to continue as a going concern for at least one year. Management's plans to raise capital or improve operations do not alleviate this doubt[40][42] Revenue by Geography (Six Months Ended June 30, in thousands) | Region | 2025 | 2024 | | :--- | :--- | :--- | | U.S.A. | $30,270 | $51,820 | | International | $19,151 | $19,010 | | Total Revenue | $49,421 | $70,830 | - Revision of Prior Financials: The company identified a misstatement in its Q2 2024 financials, having incorrectly classified marketable securities as cash and cash equivalents. The statements have been revised to correct this[103][105] - Subsequent Events: After the quarter end, the company acquired Zemetric, Inc. on July 7, 2025, and amended its merger agreement with Envoy Technologies on August 4, 2025, to settle payment obligations with Blink common stock and warrants[112][113][114] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the Q2 revenue decline driven by lower product sales, significant gross margin contraction, increased operating expenses, and reiterates going concern doubt - As of June 30, 2025, the company had contracted, sold, or deployed 110,828 chargers, with 88,168 of them on the Blink Networks[124] - Going Concern Warning: Management explicitly states that current cash resources are insufficient to fund operations for the next twelve months, concluding that substantial doubt exists about the company's ability to continue as a going concern[146] Q2 2025 vs Q2 2024 Revenue Breakdown (in thousands) | Revenue Source | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Product sales | $14,508 | $23,582 | $(9,074) | -38% | | Charging service revenue | $7,691 | $4,936 | $2,755 | 56% | | Network fees | $2,954 | $1,907 | $1,047 | 55% | | Total Revenues | $28,667 | $33,262 | $(4,595) | -14% | - The increase in cost of product sales in Q2 2025 was primarily due to a $6.4 million adjustment for excess and obsolete inventory and a $3.9 million loss on disposal of non-performing chargers[159] - Compensation expense decreased by 22% in Q2 2025 compared to Q2 2024 due to cost savings from reduced personnel in executive, marketing, sales, and operations departments[169] Quantitative and Qualitative Disclosures About Market Risk The company identifies foreign currency risk, primarily from the euro, but deems it immaterial and does not currently use hedging instruments - The company is exposed to foreign currency risk, primarily from the euro, but considers the potential impact of a 1% adverse fluctuation to be immaterial as of June 30, 2025[214] - Blink does not currently use financial instruments to hedge its foreign currency exchange risk[214] Controls and Procedures Management concluded that disclosure controls and procedures were ineffective as of June 30, 2025, due to previously identified material weaknesses in internal control over financial reporting - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were not effective[217] - The ineffectiveness is attributed to material weaknesses in internal control over financial reporting that were previously disclosed in the 2024 Form 10-K[217] - Management is continuing to commit resources to remediate the identified material weaknesses[219] PART II - OTHER INFORMATION This section covers legal proceedings, risk factors, and other required disclosures for the reporting period Legal Proceedings The company is involved in an arbitration with FGI and notes the conclusion of a previously disclosed SEC investigation with no enforcement action - The company is in arbitration with FGI, a company of former CEO Michael D. Farkas, over a commission dispute. The outcome is not currently expected to be material[224] - An SEC investigation initiated in July 2023 was concluded in January 2025, with the SEC staff issuing a termination letter and not recommending an enforcement action[225] Risk Factors This section updates significant financial risks, emphasizing substantial net losses, a large accumulated deficit, and explicit going concern doubt - The company explicitly states that substantial doubt exists about its ability to continue as a going concern due to a history of substantial net losses and the expectation that losses will continue[227] - As of June 30, 2025, the company had an accumulated deficit of approximately $788 million and net working capital of approximately $40 million[227] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities, use of proceeds, or issuer purchases of equity securities during the period - None Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - None Mine Safety Disclosures This item is not applicable to the company - Not applicable Other Information The company reported no other information required to be disclosed under this item - None Exhibits This section lists the exhibits filed with the Form 10-Q, including amendments to the Envoy Merger Agreement, employment agreements, certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files - Lists exhibits filed with the report, including amendments to the Envoy Merger Agreement and officer certifications[233]