Revenue Performance - Net revenue for the three months ended March 31, 2023, was $3,919,000, an increase of 18% compared to $3,312,000 for the same period in 2022[109]. - Mobility revenues remained flat at $1,578,000 for both periods, with a slight decrease in active markets and trips[110]. - Media revenues increased by $430,000, or 26%, driven by a rise in live subscribers from $310,000 to $685,000[111]. Operating Expenses - Total operating expenses decreased to $19,381,000 from $21,362,000, a reduction of 9% year-over-year[108]. - Sales and marketing expenses decreased by $1,359,000, or 52%, due to the termination of consultancy agreements and reduction of marketing staff[117]. - Research and development expenses increased by $99,000, or 13%, reflecting ongoing investments in the in-house Global IT engineering team[118]. - General and administrative expenses decreased by $449,000, or 7%, primarily due to a reduction in stock-based compensation[119]. Non-Operating Expenses - Total non-operating expenses increased by 204% to $4,088,000, mainly due to SEPA financial expenses and a significant decrease in the fair value of warrant liabilities[120]. Stock and Financial Position - The company executed a one-for-fifty reverse stock split on March 30, 2023, to improve stock price and market perception[104]. - As of March 31, 2023, the company reported cash and cash equivalents of $647 million, excluding restricted cash of $310 million[131]. - The company entered into two Standby Equity Purchase Agreements (SEPA) in January and March 2023, allowing it to sell up to $70 million of its Class A Common Stock over 24 months[133]. - Total financial liabilities as of March 31, 2023, amounted to $35.837 million, with $28.956 million classified as current financial liabilities[138]. Cash Flow - For the three months ended March 31, 2023, the company experienced a net cash used in operating activities of $12.886 million, an improvement from $16.539 million in the same period of 2022[133]. Investments and Services - During the three months ended March 31, 2023, the company invested $356 million in property, equipment, and intangible assets[136]. - The company provided sharing electric mobility services in 13 cities across Italy and 10 cities in the United States during the three months ended March 31, 2023[129]. Loss and Expenses - The company reported a net loss of $19.554 million for the three months ended March 31, 2023[134]. - The company recorded content licensing expenses of $4.070 million for the three months ended March 31, 2023[152]. - Media rights-related accounts payable stood at $7.913 million as of March 31, 2023, with future minimum payments related to media rights agreements totaling $27.202 million[150][152]. Lease Obligations - The company has future annual minimum lease payments of $2.450 million for operating leases and $2.046 million for finance leases as of March 31, 2023[145]. Regulatory and Accounting Matters - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[158]. - The company has elected to use the extended transition period for new or revised financial accounting standards, which may complicate financial statement comparisons with other public companies[159]. - There are currently no off-balance sheet arrangements reported by the company[160]. - The company adopted ASU 2016-13 regarding credit losses effective January 1, 2023, with no material impact on its financial statements[161].
Micromobility.com (MCOM) - 2023 Q1 - Quarterly Report