Revenue Performance - Total revenue decreased by $863, or 20%, for the three months ended June 30, 2023, compared to the same period in 2022, and decreased by $256, or 3%, for the six months ended June 30, 2023 [117]. - Mobility revenues decreased by $1,021, or 24%, in the six months ended June 30, 2023, compared to the same period in 2022, and decreased by $1,022, or 38%, for the three months ended June 30, 2023 [118]. - Media revenues increased by $463, or 15%, in the six months ended June 30, 2023, compared to the same period in 2022, and increased by $32, or 2%, for the three months ended June 30, 2023 [119]. Operating Expenses and Losses - Total operating expenses increased to $35,897 for the three months ended June 30, 2023, compared to $20,756 for the same period in 2022, representing a 73% increase [116]. - Net loss for the three months ended June 30, 2023, was $34,219, compared to a net loss of $19,740 for the same period in 2022, reflecting a 73% increase in losses [116]. - Cost of revenues increased by $2,254, or 22%, for the three months ended June 30, 2023, compared to the same period in 2022 [122]. Cost Management - Mobility cost of revenues for the three months ended June 30, 2023, was $5,019, down from $7,220 in the same period in 2022, a decrease of 44% [121]. - Sales and marketing expenses decreased by $2,490 or 73% in Q2 2023 compared to Q2 2022, and by $3,849 or 64% in the first half of 2023 compared to the same period in 2022 [126][128]. - General and Administrative expenses decreased by $1,197 or 19% in Q2 2023 compared to Q2 2022, and by $1,644 or 13% in the first half of 2023 compared to the same period in 2022 [131]. Future Outlook - The Company anticipates a decrease in media revenues in future periods due to the early termination of agreements with LNPB, which will impact commercialization of media rights [120]. - The Company aims to achieve cash positivity by reducing operating cash used in the micro-mobility business, resulting in the closure of some operating markets [118]. Financial Liabilities and Equity - As of June 30, 2023, the total financial liabilities of the company amounted to $31,877 million, with $25,156 million classified as current financial liabilities [155]. - The company partially repaid $9,228 million of the 2022 Convertible Notes during the six months ended June 30, 2023, including $8,047 million in principal [158]. - The company issued 103,689 Class A Common Shares in satisfaction of conversion requests totaling $1,296 million in principal and interest during the same period [159]. Cash Flow and Financing - Net cash used in operating activities was $21,836 for the six months ended June 30, 2023, compared to $23,206 for the same period in 2022 [149]. - Cash and cash equivalents as of June 30, 2023, were $512, excluding restricted cash of $688 [147]. - The Company plans to continue funding operations and expansion through debt and equity financing for the next twelve months [148]. Impairments and Adjustments - The Company recorded an impairment of Goodwill amounting to $13,826 and Intangible assets of $2,619, totaling $16,444 for the six months ended June 30, 2023 [135][132]. - Interest expenses increased by $353 or 23% in Q2 2023 compared to Q2 2022, and by $74 or 2% in the first half of 2023 compared to the same period in 2022 [137]. - The company adopted ASU 2016-13 effective January 1, 2023, which requires a current expected credit loss methodology for measuring impairments of certain financial assets [187]. Shareholder Actions - The CEO converted $78 million of deferred salaries into 13,000 Class A Common Shares during the six months ended June 30, 2023 [175]. - The 2023 SEPA Convertible Note has a principal amount of $4,500 million with a maturity date of September 15, 2023, and a fixed conversion price of $25 [162]. Operational Highlights - The number of Quarterly Active Platform Users (QAPUs) is used to assess platform adoption and transaction frequency [141]. - The Company provided sharing electric mobility services in multiple cities across Italy and the United States during the six months ended June 30, 2023 [145]. - The company recorded a gain of $637 million for waiving overdue invoices related to the leasing of 2,950 E-scooters [165]. - Future annual minimum lease payments as of June 30, 2023, are projected to total $2,044 million for operating leases and $488 million for finance leases [167]. - The company has a total of $11,269 million in overdue invoices related to media rights agreements following the early termination of agreements with LNPB [171].
Micromobility.com (MCOM) - 2023 Q2 - Quarterly Report