Revenue Performance - Helbiz's net revenue increased by $2,704, or 21%, from $12,834 in 2021 to $15,538 in 2022, primarily driven by a rise in media revenues and other revenues [350]. - Mobility revenues decreased by $1,477, or 15%, from $9,907 in 2021 to $8,430 in 2022, attributed to a 16% reduction in trips [351][352]. - Media revenues surged by 135%, reaching $6,507 in 2022, compared to $2,770 in 2021, marking the first full year of activity for this business line [350][354]. Operating Expenses - Total operating expenses rose by $17,079, or 24%, from $71,958 in 2021 to $89,037 in 2022, largely due to the full-year impact of the media business [348][357]. - Research and development expenses decreased by $85, or 3%, from $2,826 in 2021 to $2,741 in 2022 [361]. - Sales and marketing expenses fell by $2,163, or 20%, from $10,875 in 2021 to $8,712 in 2022, due to reduced stock-based compensation and expired consultancy agreements [362]. - General and administrative expenses increased by $1,158, or 5%, from $24,411 in 2021 to $25,569 in 2022, driven by professional fees related to the business combination with Wheels Lab Inc. [363]. Net Loss and Financial Position - The company recorded a net loss of $82,074 in 2022, compared to a net loss of $71,971 in 2021 [348]. - The company recorded a net loss of $82,074 for the year ended December 31, 2022, with cash used in operating activities amounting to $43,095 [388]. - Cash and cash equivalents as of December 31, 2022, were $429, excluding restricted cash [379]. - As of December 31, 2022, total financial liabilities were $40,418, a decrease from $45,126 in 2021 [393]. Business Developments - The business combination with Wheels Labs, Inc. was completed on November 18, 2022, enhancing Helbiz's micro-mobility offerings [341]. - The company expanded its e-scooter business by opening in Orlando (Florida) and Charlotte (North Carolina) in 2022 [374]. Financing Activities - Financing activities provided $29,595 of cash in 2022, with net proceeds from the issuance of financial liabilities generating $31,660 [391]. - The company plans to continue funding operations and expansion through debt and equity financing, with a Standby Equity Purchase Agreement allowing for the sale of up to $70,000 in shares over 24 months [381]. - The Company entered into a Standby Equity Purchase Agreement allowing the sale of up to $13,900 of Class A Common Stock over 24 months [419]. Share and Warrant Transactions - The 2021 convertible notes were fully converted into 38,230,442 Class A Common Shares, totaling $31,007, including $30,000 principal and $1,007 accumulated interest [397]. - During 2022, the Company received cumulative proceeds of $23,000 from three Securities Purchase Agreements, issuing 150,000 shares of Class A common stock and 1,000,000 Warrants [398]. - The 2022 convertible notes have been partially converted into 68,145,671 Class A Common Shares, totaling $12,778, including $12,485 principal and $293 accumulated interest [400]. - The SEPA Convertible Note issued on December 1, 2022, had a principal amount of $5,000 with a 10% issuance discount and a conversion price fixed at $0.50 [402]. - As of December 31, 2022, the Company had 161,922,116 Class A Common Shares and 14,225,898 Class B Common Shares outstanding [412]. - During the year ended December 31, 2022, the Company delivered Advance Notices for the sale of 23,100,000 Class A Common Shares, resulting in gross proceeds of $3,792 [422]. Lease and Legal Matters - Future annual minimum lease payments as of December 31, 2022, total $3,934, including $1,314 for operating leases and $2,620 for finance leases [411]. - The Company assumed various claims and legal proceedings related to the Wheels business, including lawsuits involving California Labor Code violations [428]. - As of December 31, 2022, the Company has accrued $2,710 in Other Current liabilities for estimated costs associated with ongoing legal matters [429]. Revenue Recognition - The Company generates revenue from two segments: Mobility and Media, with Mobility revenues related to electric vehicle rentals and Media revenues from international distribution of media content [433][434]. - Mobility revenues are recognized upon completion of each ride for single-use rentals, while subscription revenues are recognized evenly over the rental period, typically one month or less [437]. - Media revenues consist of three sub-categories: commercialization of media rights (B2B), live subscriptions (B2C), and advertising fees, with revenues recognized ratably over the licensing period [446][449]. Accounting Policies - The Company adopted ASC 842 for leases as of January 1, 2022, and elected not to separate lease and non-lease components for all leases [450]. - The Company records right-of-use assets and lease liabilities at the present value of lease payments, with lease costs recognized on a straight-line basis over the lease term [456]. - Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired, tested for impairment annually [461]. - Intangible assets are amortized on a straight-line basis over estimated useful lives ranging from one to five years, primarily consisting of operating permits and licenses [462]. - The Company reviews long-lived assets for impairment whenever events indicate that the carrying amount may not be recoverable, measuring recoverability against future undiscounted cash flows [464]. Fair Value Measurements - The fair value of financial instruments is determined using a hierarchy of inputs, with Level 1 being quoted prices in active markets and Level 3 being unobservable inputs [465]. - The company has classified certain warrants from Level 3 to Level 1 in the fair value hierarchy, now valuing them based on active market prices [470]. - The fair value of common stock and temporary equity is determined using a third-party valuation specialist, considering factors such as comparable company valuations and the company's financial performance [471]. Regulatory Status - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards until it no longer meets this status [472]. - There are no off-balance sheet arrangements currently or during the presented periods [473].
Micromobility.com (MCOM) - 2022 Q4 - Annual Report