Blink Charging Co. 10-K

ITEM 9A. CONTROLS AND PROCEDURES. Evaluation of Disclosure Controls and Procedures Disclosure controls and procedures are designed to provide reasonable assurance that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost- benefit relationship of possible controls and procedures. Management has designed disclosure controls and procedures that reasonably enable the management to deliberate and take timely decisions regarding required disclosure. As required by the SEC Rules 13a-15(b) and 15d-15(b), we carried out an evaluation under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded the Company’s disclosure controls and procedures were not effective as of December 31, 2023, due to the material weaknesses in internal control over financial reporting described below. However, after giving full consideration to the material weaknesses described below, and the additional analyses and other procedures the Company performed to ensure that its consolidated financial statements included in this Annual Report on Form 10-K were prepared in accordance with U.S. GAAP, Blink’s management has concluded that its consolidated financial statements present fairly, in all material respects, its financial position, results of operations and cash flows for the periods disclosed in conformity with U.S. GAAP. Management’s Annual Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control system was designed to, in general, provide reasonable assurance to our company’s management and board regarding the preparation and fair presentation of published financial statements, but because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 40 As permitted by SEC guidance for newly acquired businesses, because it was not possible to complete an effective assessment of the acquired company’s controls by year-end, management has excluded Envoy Technologies Inc., from its evaluation of disclosure controls and procedures and internal controls over financial reporting and changes therein from the date of such acquisition through December 31, 2023. Envoy’s total assets and total revenues represent approximately 1% and 2% respectively, of the related consolidated financial statement amounts of Blink Charging Co. as of and for the year ended December 31, 2023. Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2023. The framework used by management in making that assessment was the criteria set forth in the document entitled “2013 Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that, during the period covered by this report, such internal controls and procedures were not effective as of December 31, 2023, because of the material weaknesses reported below. ● Management identified information technology deficiencies in the design and implementation of change management and user access controls over financial IT applications and underlying records that: support the Company’s financial reporting processes, impact automated process-level and manual controls, and provide the assurance that the data produced by these systems is complete and accurate. The access issues relate to appropriate segregation of duties that would adequately restrict user and privileged access to the financially relevant applications and underlying records to the appropriate Company personnel. Management has considered the IT deficiencies to be a material weakness in internal controls over financial reporting as of December 31, 2023. ● During 2023, management reported a material weakness related to the operational effectiveness of its internal controls related to review of the impairment and allocation of goodwill and intangible assets. Remediation efforts have begun; the material weaknesses will not be considered remediated until the applicable controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively. The Company expects that the remediation of these material weaknesses will be completed during 2024. Remediation in Internal Control Over Financial Reporting During 2023 In 2022, the Company identified certain design deficiency which resulted in a failure to detect a miscalculation of a certain non-cash share-based compensation transaction on a timely basis. As a result of the internal controls initiatives referenced above, the 2022 reported material weakness has been remediated in 2023 and is operating effectively. Changes in Internal Control Over Financial Reporting During 2023, management continued to implement improvements to the Company’s internal control system including expanding our internal control assessments to the Company’s 2022 acquisitions Throughout the year, from executive management down, a strong commitment was made to the importance of internal control and to create and maintain an infrastructure to support the Company’s compliance program. The Audit Committee was actively engaged and exercised continuous oversight throughout the process. Further, management and the Audit Committee fostered open and regular dialogue with the Company’s external auditors. Internal control, particularly those relating to subjective judgements, were strengthened and, when possible automated and centralized. Except as described above, there were no changes in the Company’s internal control over the financial reporting during the fourth quarter of 2023 that have materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 41 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON INTERNAL CONTROL OVER FINANCIAL REPORTING To the Stockholders and Board of Directors of Blink Charging Co. Adverse Opinion on Internal Control over Financial Reporting We have audited Blink Charging Co. and subsidiaries’ (the “Company”) internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, because of the effect of the material weaknesses described in the following paragraph on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. A material weakness is a control deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weaknesses have been identified and included in “Management’s Annual Report on Internal Control Over Financial Reporting”: ● The Company's change management and access controls were not designed and implemented effectively to ensure: 1) IT program and data changes affecting the Company’s financial IT applications and underlying records are identified, tested, authorized and implemented appropriately to validate that data produced by these IT applications were complete and accurate, and 2) appropriate segregation of duties that would adequately restrict user and privileged access to the financially relevant applications and underlying records to the appropriate Company personnel. Due to the pervasive nature of these deficiencies other IT general controls, automated process-level, and manual controls that are dependent upon the information derived from such financially relevant applications were also determined to be ineffective. ● Ineffective operation of management review controls over allocation of proceeds to intangible assets and goodwill and the evaluation of potential impairment for goodwill and other intangible assets. These deficiencies, combined with inadequate review controls, created a reasonable possibility that a material misstatement, either individually or in the aggregate, of the consolidated financial statements might not be prevented or detected on a timely basis and represent material weaknesses in the Company’s internal control over financial reporting. These material weaknesses were considered in determining the nature, timing and extent of audit tests applied in our audit of the fiscal 2023 consolidated financial statements, and this report does not affect our report dated March 18, 2024 on those financial statements. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2023 and 2022 and the related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2023 and our report thereon dated March 18, 2024 expressed an unqualified opinion on those financial statements. Explanatory Paragraph – Excluded Subsidiary As described in “Management’s Annual Report on Internal Control Over Financial Reporting”, management has excluded its wholly owned subsidiary, Envoy Technologies, Inc., from its assessment of internal control over financial reporting as of December 31, 2023 because the entity was acquired by the Company as the result of a business combination during 2023. We have also excluded Envoy Technologies, Inc. from our audit of internal control over financial reporting. The subsidiary’s combined total assets and total revenues represent approximately 1% and 2%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2023. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying “Management’s Annual Report on Internal Control Over Financial Reporting”. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of the inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that degree of compliance with the policies or procedures may deteriorate. Marcum llp New York, NY March 18, 2024 ITEM 9B. OTHER INFORMATION. During the fiscal quarter ended December 31, 2023, none of the Company’s directors or officers adopted , modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement, in each case as defined in Item 408 of Regulation S-K. ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS Not applicable. 42 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. Information required by this item is incorporated by reference from our definitive proxy statement for the 2024 Annual Meeting of Stockholders to be filed within 120 days of our fiscal 2023 year-end. ITEM 11. EXECUTIVE COMPENSATION. Information required by this item is incorporated by reference from our definitive proxy statement for the 2024 Annual Meeting of Stockholders to be filed within 120 days of our fiscal 2023 year-end. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Information required by this item is incorporated by reference from our definitive proxy statement for the 2024 Annual Meeting of Stockholders to be filed within 120 days of our fiscal 2023 year-end. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. Information required by this item is incorporated by reference from our definitive proxy statement for the 2024 Annual Meeting of Stockholders to be filed within 120 days of our fiscal 2023 year-end. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. Information required by this item is incorporated by reference from our definitive proxy statement for the 2024 Annual Meeting of Stockholders to be filed within 120 days of our fiscal 2023 year-end. 43 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. (a)(3) EXHIBITS Exhibit Incorporated by Reference Filed or Furnished Number Exhibit Description Form Exhibit Filing Date Herewith 2.1 Share Purchase Agreement, dated April 21, 2021, between the Shareholders of Blue Corner NV and Blink Holdings B.V. 8-K 2.1 05/13/2021 2.2 Sale and Purchase Agreement, dated April 22, 2022, between the shareholders of Electric Blue Limited, and Blink Holdings B.V. and Blink Charging Co. 8-K 2.1 04/26/2022 2.3 Agreement and Plan of Merger, dated as of June 13, 2022, by and among Blink Charging Co., Blink Sub I Corp., Blink Sub II LLC, SemaConnect, Inc. and Shareholder Representative Services LLC (solely in its capacity as the stockholders’ representative) 8-K 2.1 06/14/2022 2.4 Agreement and Plan of Merger, dated as of April 18, 2023, by and among Blink Charging Co., Blink Mobility, LLC, Mobility Merger Sub Inc., Envoy Technologies, Inc., and Fortis Advisors LLC (as Equityholders’ Agent) 8-K 2.1 04/24/2023 2.5 Amendment No. 2, dated as of August 4, 2023, to Agreement and Plan of Merger, dated as of June 13, 2022, by and among Blink Charging Co., SemaConnect LLC and Shareholder Representative Services LLC, as Stockholders’ Representative. 10-Q 2.2 08/09/2023 3.1 Articles of Incorporation, as amended most recently on August 17, 2017 10-K 3.1 04/17/2018 3.2 Bylaws, as amended most recently on January 29, 2018 10-K 3.2 04/17/2018 3.4 Certificate of Withdrawal for Series A Convertible Preferred Stock 3.1 04/07/2022 3.5 Certificate of Withdrawal for Series B Preferred Stock 3.2 04/07/2022 3.6 Certificate of Withdrawal for Series C Convertible Preferred Stock 3.3 04/07/2022 3.7 Certificate of Withdrawal for Series D Convertible Preferred Stock 3.4 04/07/2022 4.2 Form of Common Stock Purchase Warrant dated April 9, 2018 8-K 4.1 04/19/2018 4.3 Description of the Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 10-K 4.3 04/02/2020 10.14* 2018 Incentive Compensation Plan Proxy - 08/14/2018 10.18* Employment Offer Letter, dated February 7, 2020, between Blink Charging Co. and Michael P. Rama 8-K 10.1 02/11/2020 44 10.20* Employment Offer Letter, dated as of March 29, 2020, between Blink Charging Co. and Brendan S. Jones 8-K 10.1 04/20/2020 10.22* Employment Agreement, dated December 27, 2021, between Blink Charging Co. and Brendan S. Jones 8-K 10.1 12/29/2021 10.23* Employment Agreement, dated April 20, 2021, between Blink Charging Co. and Harjinder Bhade 10-K/A 10.20 04/29/2022 10.24* Employment Agreement, dated May 19, 2022, between Blink Charging Co. and Michael P. Rama 8-K 10.1 05/24/2022 10.25* Employment Agreement, dated May 19, 2022, between Blink Charging Co. and Aviv Hillo 8-K 10.2 05/24/2022 10.26 Form of Registration Rights Agreement, dated as of June 15, 2022, by and among Blink Charging Co., the equityholders of SemaConnect, Inc. and each equityholder of SemaConnect, Inc. to which Blink shares were issued 8-K 10.1 06/21/2022 10.29 Sales Agreement, dated September 2, 2022, between Blink Charging Co. and the Sales Agents 8-K 10.1 09/02/2022 10.31* Employment Agreement, dated May 1, 2023, between Blink Charging Co. and Brendan S. Jones 8-K 10.1 05/05/2023 10.32* Amendment to Blink Charging Co. 2018 Incentive Compensation Plan 14A A 06/14/2023 10.33* Separation and General Release Agreement, dated as of June 20, 2023, between Blink Charging Co. and Michael D. Farkas 8-K 10.1 06/23/2023 10.34* Employment Offer Letter, dated October 30, 2023, between Blink Charging Co. and Harjinder Bhade 8-K 10.1 11/03/2023 10.35 Amendment to Sales Agreement, dated as of November 2, 2023, between Blink Charging Co. and the Agents 8-K 10.1 11/22/2023 21.1 Subsidiaries of the Registrant X 23.1 Consent of Marcum LLP X 31.1 Rule 13a-14(a) Certification of Principal Executive Officer X 31.2 Rule 13a-14(a) Certification of Principal Financial Officer X 32.1** Section 1350 Certification of Principal Executive Officer X 32.2** Section 1350 Certification of Principal Financial Officer X 97.1* Blink Charging Co. Policy for Recovery of Erroneously Awarded Compensation 101.INS Inline XBRL Instance. X 101.XSD Inline XBRL Schema. X 101.PRE Inline XBRL Presentation. X 101.CAL Inline XBRL Calculation. X 101.DEF Inline XBRL Definition. X 101.LAB Inline XBRL Label. X 104 Cover Page Interactive Data File (Embedded within the Inline XBRL document) X * Indicates a management contract or compensatory plan or arrangement. ** In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not deemed filed for purposes of Section 18 of the Exchange Act. ITEM 16. FORM 10-K SUMMARY. None. 45 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BLINK CHARGING CO. Date: March 18, 2024 By: /s/ Brendan S. Jones Brendan S. Jones President and Chief Executive Officer (Principal Executive Officer) Date: March 18, 2024 By: /s/ Michael P. Rama Michael P. Rama Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /s/ Brendan S. Jones President, Chief Executive Officer, and Director March 18, 2024 Brendan S. Jones (Principal Executive Officer) /s/ Michael P. Rama Chief Financial Officer March 18, 2024 Michael P. Rama (Principal Financial and Accounting Officer) /s/ Aviv Hillo General Counsel, Executive Vice President of M&A, and Director March 18, 2024 Aviv Hillo /s/ Ritsaart J.M. van Montfrans Chairman of the Board March 18, 2024 Ritsaart J.M. van Montfrans /s/ Jack Levine Director March 18, 2024 Jack Levine /s/ Kristina A. Peterson Director March 18, 2024 Kristina A. Peterson /s/ Mahidhar Reddy Director March 18, 2024 Mahidhar Reddy /s/ Cedric L. Richmond Director March 18, 2024 Cedric L. Richmond 46 BLINK CHARGING CO. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Page Report of Independent Registered Public Accounting Firm (PCAOB ID: 688 ) F-2 Consolidated Balance Sheets as of December 31, 2023 and 2022 F-4 Consolidated Statements of Operations for the Years Ended December 31, 2023, 2022 and 2021 F-5 Consolidated Statements of Comprehensive Loss for the Years Ended December 31, 2023, 2022 and 2021 F-6 Consolidated Statement of Changes in Stockholders’ Equity for the Year Ended December 31, 2023 F-7 Consolidated Statement of Changes in Stockholders’ Equity for the Year Ended December 31, 2022 F-8 Consolidated Statement of Changes in Stockholders’ Equity for the Year Ended December 31, 2021 F-9 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021 F-10 Notes to Consolidated Financial Statements F-12 F- 1 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Stockholders and Board of Directors of Blink Charging Co. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Blink Charging Co. and subsidiaries (the “Company”) as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive loss, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2023, in conformity with accounting principles generally accepted in the United States of America. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on the criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 18, 2024 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting because of the existence of material weaknesses. Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matters The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. F- 2 Business Combination Critical Audit Matter Description As described in Note 3 to the financial statements, the Company acquired Envoy Technologies, Inc. in April 2023. This acquisition was accounted for as a business combination. We identified the evaluation of the acquisition-date fair value of the intangible assets acquired as a critical audit matter. The principal consideration for our determination that the evaluation of the acquisition-date fair values of the intangible assets acquired was a critical audit matter is the high degree of subjective auditor judgment associated with evaluating management’s determination of the fair values of the acquired intangible assets, which is primarily due to the complexity of the valuation models used and the sensitivity of the underlying significant assumptions. The key assumptions used within the valuation models included prospective financial information such as future revenue growth and an applied discount rate. The calculated fair values are sensitive to changes in these key assumptions. How the Critical Audit Matter was Addressed in the Audit Our audit procedures related to the evaluation of acquisition-date fair values of intangible assets acquired included the following, among others: ● We evaluated the design effectiveness of certain controls over the acquisition-date valuation process, including controls over the development of the key assumptions such as the future revenue growth and the applied discount rate. ● We obtained the purchase price allocation analysis from management and the third-party specialist engaged by management. ○ We assessed the qualifications and competence of management and the third-party specialist; and ○ We evaluated the methodologies used to determine the fair values of the intangible assets. ● We tested the assumptions used within the discounted cash flow models to estimate the fair values of the intangible assets, which included key assumptions such as the future revenue growth and the applied discount rate. ● We assessed the reasonableness of management’s forecast by inquiring with management to understand how the forecast was developed and comparing the projections to historical results and external sources, including industry trends and peer companies’ historical data. ● We involved our internal valuation specialist who assisted in the evaluation and testing performed on the reasonableness of significant assumptions to the models, including the applied discount rate. Goodwill and Other Intangible Assets Impairment Critical Audit Matter Description As described in Notes 5 and 6 to the financial statements, the Company recognized goodwill and other intangible assets impairment charges of approximately $89.1 million and $5.1 million, respectively, in the statement of operations during the year ended December 31, 2023. We identified management’s impairment analysis as a critical audit matter. The principal consideration for our determination that the evaluation of goodwill and other intangible assets impairment was a critical audit matter is the high degree of subjective auditor judgment associated with evaluating management’s determination of the fair values of each reporting unit and the discounted cash flow model used in management’s assessment. This led to a high degree of auditor judgement, subjectivity, and effort in performing procedures in this audit area. How the Critical Audit Matter was Addressed in the Audit Our audit procedures related to the evaluation of reporting date fair values of goodwill and other intangible assets included the following, among others: ● We tested management’s process for determining the fair value estimate of each reporting unit. ● We evaluated the discounted cash flow model used in management’s assessment. ● We tested the completeness, accuracy, and relevance of the underlying data used by management in the discounted cash flow model. ● We evaluated the reasonableness of significant assumptions used by management as part of their analysis. ● We involved our internal valuation specialist who assisted in the evaluation and testing performed of the goodwill and other intangible assets impairment analysis. /s/ Marcum LLP Marcum LLP We have served as the Company’s auditor since 2014. New York, NY March 18, 2024 F- 3 BLINK CHARGING CO. Consolidated Balance Sheets (in thousands, except for share amounts) December 31, 2023 2022 Assets Current Assets: Cash and cash equivalents $ 121,691 $ 36,562 Accounts receivable, net 45,447 23,581 Inventory, net 47,942 34,740 Prepaid expenses and other current assets 6,654 4,399 Total Current Assets 221,734 99,282 Restricted cash 79 71 Property and equipment, net 35,127 25,862 Operating lease right-of-use assets 9,731 4,174 Intangible assets, net 16,298 26,582 Goodwill 144,881 203,710 Other assets 669 2,861 Total Assets $ 428,519 $ 362,542 Liabilities and Stockholders’ Equity Current Liabilities: Accounts payable $ 31,193 $ 24,585 Accrued expenses and other current liabilities 14,143 13,109 Notes payable 6,792 10 Current portion of operating lease liabilities 3,448 1,738 Current portion of financing lease liabilities 512 306 Current portion of deferred revenue 13,613 10,572 Total Current Liabilities 69,701 50,320 Contingent consideration - 1,316 Consideration payable 49,434 40,608 Operating lease liabilities, non-current portion 7,025 3,030 Financing lease liabilities, non-current portion 163 408 Deferred revenue, non-current portion 12,462 5,258 Other liabilities 337 645 Total Liabilities 139,122 101,585 Commitments and contingencies (Note 15) - Stockholders’ Equity: Common stock, $ 0.001 par value, 500,000,000 shares authorized, 92,818,233 and 51,476,445 shares issued and outstanding as of December 31, 2023 and 2022, respectively 93 51 Additional paid-in capital 829,563 597,982 Accumulated other comprehensive loss ( 2,536 ) ( 3,046 ) Accumulated deficit ( 537,723 ) ( 334,030 ) Total Stockholders’ Equity 289,397 260,957 Total Liabilities and Stockholders’ Equity $ 428,519 $ 362,542 The accompanying notes are an integral part of these consolidated financial statements. F- 4 BLINK CHARGING CO. Consolidated Statements of Operations (in thousands, except for share and per share amounts) 2023 2022 2021 For the Years Ended December 31, 2023 2022 2021 Revenues: Product sales $ 109,416 $ 46,018 $ 15,480 Charging service revenue - company-owned charging stations 15,646 6,866 2,978 Network fees 7,481 4,370 667 Warranty 3,258 928 220 Grant and fees rebate 469 296 400 Car-sharing services 3,302 1,268 769 Other 1,026 1,393 426 Total Revenues 140,598 61,139 20,940 Cost of Revenues: Cost of product sales 72,532 31,428 11,670 Cost of charging services - company-owned charging stations 3,540 1,466 707 Host provider fees 9,140 3,935 1,386 Network costs 1,969 1,463 454 Warranty and repairs and maintenance 4,605 2,795 892 Car-sharing services 4,356 2,137 1,458 Depreciation and amortization 4,250 3,113 1,531 Total Cost of Revenues 100,392 46,337 18,098 Gross Profit 40,206 14,802 2,842 Operating Expenses: Compensation 92,669 60,602 38,389 General and administrative expenses 35,170 27,826 10,516 Other operating expenses 17,825 15,645 9,606 Impairment of goodwill 89,087 - - Impairment of intangible assets 5,143 - - Total Operating Expenses 239,894 104,073 58,511 Loss From Operations ( 199,688 ) ( 89,271 ) ( 55,669 ) Other (Expense) Income: Interest (expense) income ( 3,546 ) ( 1,529 ) 9 Dividend income 1,909 454 294 Gain (loss) on foreign exchange 140 ( 600 ) ( 124 ) Gain on forgiveness of PPP loan - - 856 Loss on extinguishment of notes payable ( 1,000 ) - - Change in fair value of derivative and other accrued liabilities 8 66 69 Other expense ( 22 ) ( 372 ) ( 554 ) Total Other (Expense) Income ( 2,511 ) ( 1,981 ) 550 Loss Before Income Taxes $ ( 202,199 ) $ ( 91,252 ) $ ( 55,119 ) Provision for income taxes ( 1,494 ) ( 308 ) - Net Loss $ ( 203,693 ) $ ( 91,560 ) $ ( 55,119 ) Net Loss Per Share: Basic $ ( 3.21 ) $ ( 1.95 ) $ ( 1.32 ) Diluted $ ( 3.21 ) $ ( 1.95 ) $ ( 1.32 ) Weighted Average Number of Common Shares Outstanding: Basic 63,466,398 46,922,434 41,905,340 Diluted 63,466,398 46,922,434 41,905,340 The accompanying notes are an integral part of these consolidated financial statements. F- 5 BLINK CHARGING CO. Consolidated Statements of Comprehensive Loss (in thousands) 2023 2022 2021 For the Years Ended December 31, 2023 2022 2021 Net Loss $ ( 203,693 ) $ ( 91,560 ) $ ( 55,119 ) Other Comprehensive Income (Loss): Reclassification adjustments of gain on sale of marketable securities included in net loss - - 438 Cumulative translation adjustments 510 ( 1,262 ) ( 1,784 ) Total Comprehensive Loss $ ( 203,183 ) $ ( 92,822 ) $ ( 56,465 ) The accompanying notes are an integral part of these consolidated financial statements. F- 6 BLINK CHARGING CO. Consolidated Statement of Changes in Stockholders’ Equity For the Year Ended December 31, 2023 (in thousands, except for share amounts) Shares Amount Capital Loss Deficit Equity Common Stock Additional Paid-In Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Capital Loss Deficit Equity Balance - January 1, 2023 51,476,445 $ 51 $ 597,982 $ ( 3,046 ) $ ( 334,030 ) $ 260,957 Common stock issued in public offering, net of issuance costs [1] 39,248,028 41 208,825 - - 208,866 Common stock issued upon exercises of warrants 557,733 1 834 - - 835 Stock-based compensation 632,962 - 18,484 - - 18,484 Surrender and cancellation of common stock ( 27,681 ) - ( 197 ) - - ( 197 ) Reclassification of common stock liability to equity 8,235 - 35 - - 35 Common stock issued in connection with extinguishment of notes payable 158,372 - 1,000 - - 1,000 Common stock issued upon cashless exercise of options and warrants 393,240 - - - - - Common stock issued in satisfaction of accrued issuable equity 370,899 - 2,600 - - 2,600 Other comprehensive loss - - - 510 - 510 Net loss - - - - ( 203,693 ) ( 203,693 ) Balance - December 31, 2023 92,818,233 $ 93 $ 829,563 $ ( 2,536 ) $ ( 537,723 ) $ 289,397 [1] Includes gross proceeds of $ 216,662 , less issuance costs of $ 7,796 . The accompanying notes are an integral part of these consolidated financial statements. F- 7 BLINK CHARGING CO. Consolidated Statement of Changes in Stockholders’ Equity For the Year Ended December 31, 2022 (in thousands, except for share amounts) Common Stock Additional Paid-In Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Capital Loss Deficit Equity Balance - January 1, 2022 42,423,514 $ 42 $ 458,046 $ ( 1,784 ) $ ( 242,470 ) $ 213,834 Common stock issued in public offering, net of issuance costs [1] 558,721 - 7,386 - - 7,386 Common stock issued as purchase consideration of SemaConnect 7,454,975 7 113,830 - - 113,837 Common stock issued as purchase consideration of Electric Blue 152,803 - 2,852 - - 2,852 Common stock issued upon exercises of warrants 73,336 - 210 - - 210 Common stock issued upon cashless exercise of warrants 8,093 - - - - - Common stock issued upon exercise of options 5,955 - 10 - - 10 Stock-based compensation 799,048 2 15,648 - - 15,650 Other comprehensive loss - - - ( 1,262 ) - ( 1,262 ) Net loss - - - - ( 91,560 ) ( 91,560 ) Balance - December 31, 2022 51,476,445 $ 51 $ 597,982 $ ( 3,046 ) $ ( 334,030 ) $ 260,957 [1] Includes gross proceeds of $ 7,697 , less issuance costs of $ 311 . The accompanying notes are an integral part of these consolidated financial statements. F- 8 BLINK CHARGING CO. Consolidated Statement of Changes in Stockholders’ Equity For the Year Ended December 31, 2021 (in thousands except for share amounts) Common Stock Additional Paid-In Accumulated Other Comprehensive Accumulated Total Stockholders’ Shares Amount Capital Loss Deficit Equity Balance - January 1, 2021 35,951,097 $ 36 $ 214,479 $ - $ ( 187,351 ) $ 27,164 Balance 35,951,097 $ 36 $ 214,479 $ - $ ( 187,351 ) $ 27,164 Common stock issued in public offering, net of issuance costs [1] 5,660,000 6 221,327 - - 221,333 Common stock issued upon exercises of options and warrants 534,575 - 2,000 - - 2,000 Common stock issued upon cashless exercises of options and warrants 104,496 - - - - - Common stock issued as consideration for property and equipment 13,123 - 600 - - 600 Common stock issued as purchase consideration of Blue Corner 32,382 - 790 - - 790 Stock-based compensation 127,841 - 18,850 - - 18,850 Other comprehensive loss - - - ( 1,784 ) - ( 1,784 ) Net loss - - - - ( 55,119 ) ( 55,119 ) Balance - December 31, 2021 42,423,514 $ 42 $ 458,046 $ ( 1,784 ) $ ( 242,470 ) $ 213,834 Balance 42,423,514 $ 42 $ 458,046 $ ( 1,784 ) $ ( 242,470 ) $ 213,834 [1] Includes gross proceeds of $ 232,060 , less issuance costs of $ 10,727 . The accompanying notes are an integral part of these consolidated financial statements. F- 9 BLINK CHARGING CO. Consolidated Statements of Cash Flows (in thousands) 2023 2022 2021 For the Years Ended December 31, 2023 2022 2021 Cash Flows From Operating Activities: Net loss $ ( 203,693 ) $ ( 91,560 ) $ ( 55,119 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 12,441 9,547 2,731 Non-cash lease expense 2,128 997 1,246 Dividend income - - ( 62 ) Impairment of goodwill 89,087 - - Impairment of intangible assets 5,143 - - Change in fair value of contingent consideration ( 1,375 ) ( 1,499 ) - Change in fair value of derivative and other accrued liabilities 8 - 69 Provision for bad debt 2,555 1,336 908 Loss on extinguishment of notes payable 1,000 - - (Gain) loss on disposal of fixed assets ( 11 ) 113 156 Provision for slow moving and obsolete inventory 527 78 ( 187 ) Gain on forgiveness of PPP loan - - ( 856 ) Gain on settlement of accounts payable, net 24 - - Stock-based compensation: Common stock 12,893 11,224 4,391 Options 4,064 4,689 14,717 Warrants 5,082 - - Changes in operating assets and liabilities: Accounts receivable and other receivables ( 23,677 ) ( 11,869 ) ( 5,212 ) Inventory ( 15,362 ) ( 24,283 ) ( 9,227 ) Prepaid expenses and other current assets ( 2,134 ) ( 1,782 ) 710 Other assets 941 2 262 Accounts payable, accrued expenses, and other current liabilities 6,977 16,309 3,723 Other liabilities ( 307 ) 18 103 Operating lease liabilities ( 3,672 ) ( 825 ) ( 1,021 ) Deferred revenue 9,791 5,140 2,098 Total Adjustments 106,123 9,195 14,549 Net Cash Used In Operating Activities ( 97,570 ) ( 82,365 ) ( 40,570 ) Cash Flows From Investing Activities: Proceeds from sale of marketable securities - - 6,804 Note receivable - ( 2,200 ) - Purchase consideration of SemaConnect, net of cash acquired - ( 38,338 ) - Purchase consideration of Envoy, net of cash acquired ( 4,660 ) - - Purchase of marketable securities - - ( 7,209 ) Capitalization of engineering costs ( 1,028 ) ( 294 ) ( 237 ) Purchase consideration of Blue Corner, net of cash acquired - - ( 22,742 ) Purchase consideration of Electric Blue, net of cash acquired - ( 11,360 ) - Purchases of property and equipment ( 7,552 ) ( 5,249 ) ( 7,065 ) Net Cash Used In Investing Activities ( 13,240 ) ( 57,441 ) ( 30,449 ) Cash Flows From Financing Activities: Proceeds from sale of common stock in public offering [1] 208,865 7,386 221,333 Proceeds from exercise of options and warrants 835 220 2,000 Repayment of financing liability in connection with finance lease ( 2,837 ) ( 217 ) - Repayment of notes payable ( 9,292 ) ( 681 ) - Payment of financing liability in connection with internal use software ( 256 ) ( 315 ) ( 62 ) Net Cash Provided By Financing Activities 197,315 6,393 223,271 Effect of Exchange Rate Changes on Cash and Cash Equivalents ( 1,368 ) ( 4,830 ) 206 Net Increase (Decrease) In Cash and Cash Equivalents and Restricted Cash 85,137 ( 138,243 ) 152,458 Cash and Cash Equivalents and Restricted Cash - Beginning of Year 36,633 174,876 22,418 Cash and Cash Equivalents and Restricted Cash - End of Year $ 121,770 $ 36,633 $ 174,876 Cash and cash equivalents and restricted cash consisted of the following: Cash and cash equivalents $ 121,691 $ 36,562 $ 174,795 Restricted cash 79 71 81 Total Cash and cash equivalents and restricted cash $ 121,770 $ 36,633 $ 174,876 [1] For the year ended December 31, 2023, includes gross proceeds of $ 216,662 , less issuance costs of $ 7,796 . For the year ended December 31, 2022, includes gross proceeds of $ 7,697 , less issuance costs of $ 311 . For the year ended December 31, 2021, includes gross proceeds of $ 232,060 , less issuance costs of $ 10,727 . The accompanying notes are an integral part of these consolidated financial statements. F- 10 BLINK CHARGING CO. Consolidated Statements of Cash Flows - Continued (in thousands) 2023 2022 2021 For the Years Ended December 31, 2023 2022 2021 Supplemental Disclosures of Cash Flow Information: Cash paid during the year for: Interest $ 3,605 $ - $ - Income taxes $ - $ 73 $ - Non-cash investing and financing activities: Common stock issued as consideration for property and equipment $ - $ - $ 600 Common stock issued as purchase consideration of Blue Corner $ - $ - $ 790 Reclassification of common stock liability to equity $ - $ - $ 416 Right-of-use assets obtained in exchange for lease obligations $ 7,401 $ 1,787 $ 2,129 Property and equipment obtained in exchange for finance lease obligations $ 2,798 $ 931 $ - Transfer of inventory to property and equipment $ ( 1,786 ) $ ( 5,283 ) $ ( 2,189 ) Accrued interest converted to notes payable $ - $ - $ 5 Common stock issued in satisfaction of accrued issuable equity $ 2,600 $ - $ - Reclassification from inventory to fixed assets $ - $ - $ 60 Common stock issued as purchase consideration of SemaConnect $ - $ 113,837 $ - Common stock issued as purchase consideration of Electric Blue $ - $ 2,852 $ - Intangible assets obtained in exchange for financing liability $ 122 $ 660 $ - Note receivable applied to purchase consideration of Envoy $ ( 1,321 ) $ - $ - Surrender and cancellation of common stock $ ( 197 ) $ - $ - The accompanying notes are an integral part of these consolidated financial statements. F- 11 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 1. BUSINESS ORGANIZATION AND NATURE OF OPERATIONS Blink Charging Co., through its wholly-owned subsidiaries (collectively, the “Company” or “Blink”), is a leading manufacturer, owner, operator and provider of electric vehicle (“EV”) charging equipment and networked EV charging services in the rapidly growing U.S. and international markets for EVs. Blink offers residential and commercial EV charging equipment and services, enabling EV drivers to recharge at various location types. Blink’s principal line of products and services is its nationwide Blink EV charging networks (the “Blink Networks”) and Blink EV charging equipment, also known as electric vehicle supply equipment (“EVSE”), and other EV-related services. The Blink Networks is a proprietary, cloud-based system that operates, maintains and manages Blink charging stations and handles the associated charging data, back-end operations and payment processing. The Blink Networks provide property owners, managers, parking companies, state and municipal entities, and other types of commercial customers (“Property Partners”) with cloud-based services that enable the remote monitoring and management of EV charging stations. The Blink Networks also provide EV drivers with vital station information, including station location, availability and fees. Blink also operates an EV based ride-sharing business through its wholly-owned subsidiary, Blink Mobility LLC. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES LIQUIDITY As of December 31, 2023, the Company had cash and cash equivalents of $ 121,691 and working capital of $ 152,033 . During the years ended December 31, 2023, 2022, and 2021, the Company incurred a net loss of $ 203,693 , $ 91,560 and $ 55,119 , respectively. During the years ended December 31, 2023, 2022, and 2021, the Company used cash in operating activities of $ 97,570 , $ 82,365 , and $ 40,570 , respectively. During the year ended December 31, 2023, the Company sold an aggregate of 30,914,695 shares of common stock under an “at-the-market” equity offering program for aggregate gross proceeds of $ 116,651 , less issuance costs of $ 2,562 which were recorded as a reduction to additional paid-in capital. See Note 10 – Stockholders’ Equity. Subsequent to December 31, 2023, the Company sold an aggregate of 8,177,472 shares of common stock aggregate gross proceeds of $ 25,651 and net proceeds of $ 25,136 . In February 2023, the Company completed an underwritten registered public offering of 8,333,333 shares of its common stock at a public offering price of $ 12.00 per share. The Company received approximately $ 100,000 in gross proceeds from the public offering and approximately $ 95,000 in net proceeds after deducting the underwriting discount and offering expenses paid by the Company. See Note 10 – Stockholders’ Equity. The Company has not yet achieved profitability and expects to continue to incur cash outflows from operations. It is expected that the Company’s operating expenses will continue to increase and, as a result, it will eventually need to generate significant product revenues to achieve profitability. Historically, the Company has been able to raise funds to support its business operations, although there can be no assurance that it will be successful in raising significant additional funds in the future. The Company expects that its cash on hand will fund its operations for at least 12 months after the issuance date of these financial statements. Since inception, the Company’s operations have primarily been funded through proceeds received in equity and debt financing. The Company believes it has access to capital resources and continues to evaluate additional financing opportunities. There is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its development initiatives or attain profitable operations. The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its products and services, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product and service offerings. During 2023, the Company commenced a plan designed to improve the Company’s liquidity by enhancing revenue economics and reducing selling, general, and administrative expenses. The plan seeks to achieve these goals by increasing gross profit through product optimization, integration of SemaConnect, Blink UK/EB and Blue Corner acquisitions, and reduction of operating expenses through cost avoidance and cost cutting strategies. There can be no assurances these strategies will be achieved. F- 12 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Blink Charging Co. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the years ended December 31, 2023, 2022 and 2021 include the results of operations of BlueLA Carsharing LLC, U-Go Stations Inc., Blue Corner NV, Electric Blue and SemaConnect, Inc. from their respective dates of acquisition. USE OF ESTIMATES Preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, together with amounts disclosed in the related notes to the financial statements. The Company’s significant estimates used in these financial statements include, but are not limited to, stock-based compensation, accounts receivable reserves, inventory valuations, the carrying amount of goodwill, the valuation allowance related to the Company’s deferred tax assets, the carrying amount of intangible assets, right-of- use assets and related leases payable, estimates of future EV sales and the effects thereon, derivative liabilities and the recoverability and useful lives of long-lived assets. Certain of the Company’s estimates could be affected by external conditions, including those unique to the Company and general economic conditions. It is reasonably possible that these external factors could have an effect on the Company’s estimates and could cause actual results to differ from those estimates. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and is measured using inputs in one of the following three categories: Level 1 measurements are based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. Level 2 measurements are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active or market data other than quoted prices that are observable for the assets or liabilities. Level 3 measurements are based on unobservable data that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The Company considers cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities to meet the definition of financial instruments. As of December 31, 2023 and 2022, the carrying amount of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value due to the relatively short period of time between their origination and their expected realization or payment. The carrying amount of consideration payable approximates its fair value as the terms are comparable to terms currently offered by local lending institutions for arrangements with similar terms to industry peers with comparable credit characteristics. CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents in the consolidated financial statements. The Company has cash on deposits in several financial institutions which, at times, may be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced losses in such accounts and periodically evaluates the creditworthiness of its financial institutions. The Company reduces its credit risk by placing its cash and cash equivalents with major financial institutions. ACCOUNTS AND OTHER RECEIVABLES Accounts and other receivables are carried at their contractual amounts, less a provision for current expected credit losses. The reserve represents the Company’s best estimate of expected credit losses it may experience in the Company’s receivable portfolio. As of December 31, 2023 and 2022, there was an allowance for expected credit losses of $ 6,750 and $ 2,548 , respectively. Management estimates the allowance for credit losses based on an ongoing review of existing economic conditions, the financial conditions of the customers, historical trends in credit losses, and the amount and age of past due accounts. F- 13 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED I NVENTORY Inventory is comprised of electric charging stations, related parts and components, sub-components, sub-assemblies and finished products. Inventory is stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out method. Inventory that is sold to third parties is included within cost of sales and inventory that is installed on the premises of participating owner/operator properties, where the Company retains ownership, is transferred to property and equipment at the carrying value of the inventory. Cost of parts and components include the purchase and related costs incurred in bringing the products to their present location and condition. The Company periodically reviews for slow-moving, excess or obsolete inventories. Products that are determined to be obsolete, if any, are written down to net realizable value. Based on the aforementioned periodic reviews, the Company recorded an inventory reserve for slow-moving or excess inventory of $ 777 and $ 298 as of December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company’s inventory was comprised $ 33,902 of finished goods that were available for sale and $ 14,040 of raw material and work in process. PROPERTY AND EQUIPMENT Property and equipment is stated at cost, net of accumulated depreciation and amortization which is recorded commencing at the in-service date using the straight-line method over the estimated useful lives of the assets. SCHEDULE OF ESTIMATED USEFUL LIVES OF PROPERTY AND EQUIPMENT Useful Lives Asset (In Years) Computer software and office and computer equipment 3 - 5 Machinery and equipment, automobiles, furniture and fixtures 3 - 10 Installed Level 2 electric vehicle charging stations 3 - 7 Installed Level 3 (DC Fast Chargers (“DCFC”)) electric vehicle charging stations 5 Buildings 39 When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the consolidated statements of operations for the respective period. Minor additions and repairs are expensed in the period incurred. Major additions and repairs which extend the useful life of existing assets are capitalized and depreciated using the straight-line method over their remaining estimated useful lives. EV charging stations represents the cost, net of accumulated depreciation, of charging equipment and installation of the charging equipment that have been installed on the premises of participating owner/operator properties or are earmarked to be installed. The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. The Company assesses the recoverability of its long-lived assets by monitoring current selling prices of car charging units in the open market, the adoption rate of various auto manufacturers in the EV market and projected car charging utilization at various public car charging stations throughout its network in determining fair value. An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset and its eventual disposition are less than its carrying amount. As electric vehicle charging requirements and technologies change, driven by federal, state or local regulatory authorities or by electric vehicle manufacturers or other technology or services providers for the charging station industry, in particular cellular connectivity technology, the Company may need to upgrade or adapt its charging station products or introduce new products in order to serve new vehicles, conform to new standards, or adapt new technologies to serve existing customers or new customers at substantial research, development, and network upgrades costs. During 2021, many cellular technology providers announced they will require the upgrade from 2G/3G connectivity to 4G LTE during 2022 (the “Upgrade”). During the year ended December 31, 2022, the Company incurred $ 3,809 related to these upgrades. As of December 31, 2023, the charger upgrades were substantially complete. See Note 4 – Property and Equipment for additional details. F- 14 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED GOODWILL Goodwill is the excess of consideration paid for an acquired entity over the fair value of the amounts assigned to assets acquired, including other identifiable intangible assets, and liabilities assumed in a business combination. To determine the amount of goodwill resulting from a business combination, the Company performs an assessment to determine the acquisition date fair value of the acquired company’s tangible and identifiable intangible assets and liabilities. Goodwill is required to be evaluated for impairment on an annual basis or whenever events or changes in circumstances indicate the asset may be impaired. An entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. These qualitative factors include: macroeconomic and industry conditions, cost factors, overall financial performance and other relevant entity-specific events. If the entity determines that this threshold is met, then the Company may apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The Company determines fair value through multiple valuation techniques and weights the results accordingly. The Company is required to make certain subjective and complex judgments in assessing whether an event of impairment of goodwill has occurred, including assumptions and estimates used to determine the fair value of its reporting units. The Company has elected to perform its annual goodwill impairment review on November 1 of each year utilizing a qualitative assessment to determine if it was more likely than not that the fair value of each of its reporting units was less than their respective carrying values and concluded that no impairment existed. See Note 6 - Goodwill for further information. INTANGIBLE ASSETS Identifiable intangible assets primarily include trade name, customer relationships, favorable leases, internally developed technology, capitalized engineering costs and non-compete agreements. Amortizable intangible assets are amortized on a straight-line basis over their estimated useful lives and reviewed for impairment whenever events or changes in circumstances indicate that the assets may be impaired. If an indicator of impairment exists, the Company will compare the estimated future cash flows of the asset, on an undiscounted basis, to the carrying value of the asset. If the undiscounted cash flows exceed the carrying value, no impairment is indicated. If the undiscounted cash flows do not exceed the carrying value, then impairment, if any, is measured as the difference between fair value and carrying value, with fair value typically based on a discounted cash flow model. SEGMENTS The Company operates a single segment business. The Company’s Chief Executive Officer and Chief Operating Officer, who is the chief operating decision maker, views the Company’s operating performance on a consolidated basis as Blink’s only business is the sale and distribution of electric vehicle charging equipment and its associated revenues earned from customers and/or Property Partners who use equipment connected to the Company’s network. FOREIGN CURRENCY TRANSLATION The Company’s reporting currency is the United States dollar. The functional currency of certain subsidiaries is the Euro, Indian Rupee, and Pound Sterling. Assets and liabilities are translated based on the exchange rates at the balance sheet date ( 1.1039 for the Euro, 0.0120 for the Indian Rupee and $ 1.1533 for the Pound Sterling as of December 31, 2023; 1.0701 for the Euro, 0.0121 for the Indian Rupee and 1.1299 for the Pound Sterling as of December 31, 2022; 1.1325 for the Euro, 0.0135 for the Indian Rupee and 1.3497 for the Pound Sterling as of December 31, 2021). Expense accounts are translated at the weighted average exchange rate for the period ( 1.0980 for the Euro, 0.0120 for the Indian Rupee and 1.2664 for the Pound Sterling during the year ended December 31, 2023; 1.0527 for the Euro, 0.0121 for the Indian Rupee and 1.1903 for the Pound Sterling during the year ended December 31, 2022; 1.1325 for the Euro, 0.0133 for the Indian Rupee and 1.3497 for the Pound Sterling during the year ended December 31, 2021). Equity accounts are translated at historical exchange rates. The resulting translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income. Comprehensive income (loss) is defined as the change in equity of an entity from all sources other than investments by owners or distributions to owners and includes foreign currency translation adjustments as described above. Transaction gains (losses) attributable to foreign exchange were $ 140 , ($ 600 ) and ($ 124 ) during the years ended December 31, 2023, 2022 and 2021, respectively. F- 15 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED REVENUE RECOGNITION The Company recognizes revenue primarily from four different types of contracts with customers: ● Product sales – Revenue is recognized at the point where the customer obtains control of the goods and the Company satisfies its performance obligation, which generally is at the time it ships the product to the customer or installation of the product. ● Charging service revenue – company-owned charging stations - Revenue is recognized at the point when a particular charging session is completed. ● Network fees and other – Represents a stand-ready obligation whereby the Company is obligated to perform over a period of time and, as a result, revenue is recognized on a straight-line basis over the contract term. Network fees are billed annually. ● Other – Other revenues primarily comprises of revenues generated from alternative fuel credits. The following table summarizes our revenue recognized in the consolidated statements of operations: SCHEDULE OF REVENUE RECOGNITION BY CONTRACT 2023 2022 2021 For The Years Ended December 31, 2023 2022 2021 Revenues - Recognized at a Point in Time Product sales $ 109,416 $ 46,018 $ 15,480 Charging service revenue - company-owned charging stations 15,646 6,866 2,978 Other 1,026 1,393 426 Total Revenues - Recognized at a Point in Time 126,088 54,277 18,884 Revenues - Recognized Over a Period of Time: Network and other fees 10,739 5,298 887 Total Revenues - Recognized Over a Period of Time 10,739 5,298 887 Revenues- Other Ride-sharing services 3,302 1,268 769 Grant and fees rebate 469 296 400 Total Revenues - Other 3,771 1,564 1,169 Total Revenue $ 140,598 $ 61,139 $ 20,940 The following table summarizes our revenue recognized in the consolidated statements of operations by geographical area: SCHEDULE OF REVENUE RECOGNITION BY GEOGRAPHICAL AREA 2023 2022 2021 For The Years Ended December 31, 2023 2022 2021 Revenues by Geographical Area U.S.A $ 104,714 $ 40,828 $ 10,978 International 35,884 20,311 9,962 Total Revenue $ 140,598 $ 61,139 $ 20,940 F- 16 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED REVENUE RECOGNITION – CONTINUED The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, the Company records deferred revenue until the performance obligations are satisfied. As of December 31, 2023, the Company had $ 26,075 related to contract liabilities where performance obligations have not yet been satisfied, which has been included within deferred revenue on the consolidated balance sheets as of December 31, 2023. The Company expects to satisfy $ 13,613 of its remaining performance obligations for network fees, warranty revenue, product sales, and other and recognize the revenue within the next twelve months. The Company has elected to apply the practical expedient to expense costs to obtain contracts at the time the liability is incurred when the expected amortization period is one year or less. During the year ended December 31, 2023, the Company recognized $ 2,794 of revenues related to network fees and warranty contracts that were included in deferred revenues as of December 31, 2022. During the year ended December 31, 2022, the Company recognized $ 1,136 of revenues related to network fees and warranty contracts that were included in deferred revenues as of December 31, 2021. During the year ended December 31, 2021, the Company recognized $ 514 of revenues related to network fees and warranty contracts that were included in deferred revenues as of December 31, 2020. During the years ended December 31, 2023, 2022 and 2021, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods. Grants, fees rebates and alternative fuel credits, which are not within the scope of ASC 606, pertaining to revenues and periodic expenses, are recognized as income when the related revenue and/or periodic expense are recorded. Grants and rebates related to EV charging stations and their installation are deferred and amortized in a manner consistent with the related depreciation expense of the related asset over the useful life of the charging station. During the years ended December 31, 2023, 2022 and 2021, the Company recorded $ 469 , $ 296 and $ 400 , respectively, related to grant and rebate revenue. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $ 214 , $ 296 and $ 207 , respectively, of revenue related to alternative fuel credits, which is included within other revenue on the consolidated statements of operations. Car-sharing services is accounted for under ASC Topic 842, Leases, and pertains to revenues and expenses related to a car-sharing services agreement with the City of Los Angeles which allows customers the ability to rent electric vehicles through a subscription service. The Company accounts for such rentals as operating leases. The lease terms are included in the Company’s contracts, and the determination of whether the Company’s contracts contain leases generally does not require significant assumptions or judgments. The Company’s lease revenues do not include material amounts of variable payments. The Company does not provide an option for the lessee to purchase the rented equipment at the end of the lease. The Company is unsure of when the customer will return rented equipment. As such, the Company does not know how much the customer will owe it upon return of the equipment and, therefore, cannot provide a maturity analysis of future lease payments. The Company’s equipment is generally rented for short periods of time (generally a few minutes to a few hours). Lessees do not provide residual value guarantees on rented equipment. The Company expects to derive significant future benefits from its equipment following the end of the rental term. The Company’s equipment is typically rented for the majority of the time that the Company owns it. The Company recognizes revenue over the contractual period of performance of the subscription which are short term in nature. During the years ended December 31, 2023, 2022 and 2021, the Company recognized $ 3,302 , $ 1,268 and $ 769 , respectively, related to ride-sharing services revenue. F- 17 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED ADVERTISING COSTS The Company participates in various advertising programs. All costs related to advertising of the Company’s products and services are expensed in the period incurred. Advertising costs charged to operations for the years ended December 31, 2023, 2022 and 2021 were $ 2,321 , $ 2,618 and $ 84 , respectively, and are included in general and administrative expenses on the consolidated statements of operations CONCENTRATIONS As of December 31, 2023, accounts payable to two significant vendors were approximately 16 % and 10 % of total accounts payable. As of December 31, 2022, accounts payable to a significant vendor were approximately 15 % of total accounts payable. During the year ended December 31, 2021, sales to a significant customer represented 12 % of total revenue. During the year ended December 31, 2023, the Company made purchases from a significant supplier that represented 24 % of total purchases. During the year ended December 31, 2022 and 2021, the Company made purchases from another significant supplier that represented 19 % and 23 % respectively, of total purchases. STOCK-BASED COMPENSATION The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. The fair value of the award is measured on the grant date and then is recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. The Company computes the fair value of equity-classified warrants and options granted using the Black-Scholes option pricing model. LEASES The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property and equipment and finance lease liabilities on the consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company provides charging services at designated locations on the hosts property at which the charging station is situated. In consideration thereof, the host shares in the monthly revenue generated by the charging station on a percentage basis. As the charging station monthly revenue generated is variable, the host’s monthly revenue derived there from is similarly variable. In accordance with ASC 842 the hosts’ portion of revenue is variable and not predicated on an index or rate, as defined, these payments are not within the scope ASC 842. F- 18 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED INCOME TAXES The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of items that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. As of December 31, 2023 and 2022, the Company maintained a full valuation allowance against its deferred tax assets, since it is more likely than not that the future tax benefit on such temporary differences will not be realized. The Company recognizes the tax benefit from an uncertain income tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement by examining taxing authorities. The Company has open tax years going back to 2020 (or the tax year ended December 31, 2009 if the Company were to utilize its NOLs) which will be subject to audit by federal and state authorities upon filing. The Company’s policy is to recognize interest and penalties accrued on uncertain income tax positions in interest expense in the Company’s consolidated statements of operations. As of December 31, 2023 the Company had no unrecognized tax benefits The Company does not expect the unrecognized tax benefits to change significantly over the next 12 months. NET LOSS PER COMMON SHARE Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the common share equivalents had been issued (computed using the treasury stock or if converted method), if dilutive. The following common share equivalents are excluded from the calculation of weighted average common shares outstanding because their inclusion would have been anti-dilutive: SCHEDULE OF OUTSTANDING DILUTED SHARES EXCLUDED FROM DILUTED LOSS PER SHARE COMPUTATION For the Years Ended December 31, 2023 2022 2021 Warrants 1,150,152 1,592,203 3,274,800 Options 982,844 1,060,535 983,505 Unvested restricted common stock - - 50,831 Total potentially dilutive shares 2,132,996 2,652,738 4,309,136 COMMITMENTS AND CONTINGENCIES Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. F- 19 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED RECENTLY ISSUED ACCOUNTING STANDARDS In August 2023, the Financial Accounting Standards Board (‘FASB”) issued Accounting Standards Update (“ASU”) 2023-05, “Business Combinations - Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement,” under which an entity that qualifies as either a joint venture or a corporate joint venture as defined in the FASB Accounting Standards Codification (“ASC”) master glossary is required to apply a new basis of accounting upon the formation of the joint venture. Specifically, the ASU provides that a joint venture or a corporate joint venture (collectively, “joint ventures”) must initially measure its assets and liabilities at fair value on the formation date. The amendments are effective for all joint ventures within the ASU’s scope that are formed on or after January 1, 2025. Early adoption is permitted in any annual or interim period as of the beginning of the related fiscal year. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. In October 2023, the FASB issued ASU 2023-06, “Disclosure Improvements.” For entities subject to the SEC’s existing disclosure requirements and for entities required to file or furnish financial statements with or to the SEC in preparation for the sale of or for purposes of issuing securities that are not subject to contractual restrictions on transfer, the effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. If by June 30, 2027, the SEC has not removed the applicable requirement from Regulation S-X or Regulation S-K, the pending content of the related amendment will be removed from the Codification and will not become effective for any entity. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. In November 2023, the FASB issued an accounting standards update ASU 2023-07 “Segment Reporting: Improvements to Reportable Segment Disclosures” related to improvements to reportable segment disclosures. The amendments in this update require additional disclosure of significant expenses related to our reportable segments, additional segment disclosures on an interim basis, and qualitative disclosures regarding the decision making process for segment resources. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The adoption of this pronouncement is not expected to have a material impact on the Company’s consolidated financial statements. F- 20 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED RECENTLY ADOPTED ACCOUNTING STANDARDS In October 2021, the FASB issued ASU 2021-08, “Business Combinations (Topic 805)” (“ASU 2021-08”). The ASU improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability and payment terms and their effect on subsequent revenue recognized by the acquirer. The update is effective for annual and interim periods within the fiscal year beginning after December 15, 2022, and early adoption is permitted, including adoption in an interim period. The Company adopted ASU 2021-08 effective January 1, 2023 and its adoption did not have a material impact on its consolidated financial statements and disclosures. In March 2022, the FASB issued ASU 2022-02, “Financial Instruments—Credit Losses (Topic 326), Troubled Debt Restructurings (TDRs) and Vintage Disclosures”, that eliminate the accounting guidance for TDRs by creditors in Subtopic 310-40, Receivables—Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance to determine whether a modification results in a new loan or a continuation of an existing loan. The amendment also requires an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities should apply the amendments prospectively except for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Early adoption of the amendments is permitted, including adoption in an interim period. If an entity elects to early adopt the amendments in an interim period, the guidance should be applied as of the beginning of the fiscal year that includes the interim period. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company adopted ASU 2022-02 effective January 1, 2023 and its adoption did not have a material impact on its consolidated financial statements and disclosures. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions” which amends guidance in Topic 820, Fair Value Measurement. The guidance clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring the fair value. The guidance also clarifies that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendment requires the following disclosures for equity securities subject to contractual sale restrictions: the fair value of equity securities subject to contractual sale restrictions; the nature and remaining duration of the restriction(s); and the circumstances that could cause a lapse in the restriction(s). The amended guidance is effective January 1, 2024 on a prospective basis. The Company adopted ASU 2022-03 effective January 1, 2024 and its adoption did not have a material impact on its consolidated financial statements and disclosures. In September 2022, the FASB issued ASU 2022-04, “Liabilities - Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations”, to require entities that use supplier finance programs in connection with purchase of goods and services to disclose the key terms of such programs and information about obligations outstanding at the end of the reporting period, including a rollforward of those obligations of where in the financial statements outstanding amounts are present. The guidance does not affect the recognition, measurement, or financial statement presentation of supplier finance program obligations. The Company adopted ASU 2022-04 effective January 1, 2023 and its adoption did not have a material impact on its consolidated financial statements and related disclosures. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848), Deferral of the Sunset Date of Topic 848”, that extends the period of time preparers can utilize the reference rate reform relief guidance provided by ASU 2020-04 and ASU 2021-01, which are discussed above. ASU 2022-06, which was effective upon issuance, defers the sunset date of this prior guidance from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief guidance in Topic 848. The Company adopted ASU 2022-06 effective January 1, 2023 and its adoption did not have a material impact on its consolidated financial statements and disclosures. F- 21 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED RECENTLY ADOPTED ACCOUNTING STANDARDS -CONTINUED In July 2023, the FASB issued ASU 2023-03, “Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X: Income or Loss Applicable to Common Stock.” ASU 2023-03 amends the ASC for SEC updates pursuant to SEC Staff Accounting Bulletin No. 120; SEC Staff Announcement at the March 24, 2022 Emerging Issues Task Force (“EITF”) Meeting; and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280 - General Revision of Regulation S-X: Income or Loss Applicable to Common Stock. These updates were immediately effective and did not have a significant impact on the Company’s consolidated financial statements. 3. BUSINESS COMBINATIONS ENVOY TECHNOLOGIES, INC. On April 18, 2023, the Company, Blink Mobility, LLC, a California limited liability company and wholly-owned subsidiary of the Company (“Mobility”), and Mobility Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary of Mobility (“Merger Sub”), entered into and, after all parties met the closing conditions, consummated the transactions contemplated under an Agreement and Plan of Merger, dated as of April 18, 2023 (the “Acquisition Agreement”), with Envoy Technologies, Inc., a Delaware corporation (“Envoy”). Pursuant to the Acquisition Agreement, Merger Sub merged with and into Envoy, whereupon the separate corporate existence of Merger Sub ceased, and Envoy was the surviving corporation of the merger and a wholly-owned subsidiary of Mobility (the “Acquisition”). Under the terms of the Acquisition Agreement, the acquisition consideration was up to $ 35,500 , paid as follows: (i) $ 6,000 in cash paid upon the closing of the Acquisition Agreement (the “Closing”); (ii) a promissory note of Mobility in the principal amount of $ 5,000 which bears interest at a rate of 6 % per annum and becomes due 12 months from Closing; (iii) a promissory note of Mobility in the principal amount of $ 2,000 which bears interest at a rate of 6 % per annum and becomes due 18 months from Closing; and (iv) (a) in the event of an initial public offering or direct listing of Mobility or Mobility’s successor within 24 months after the Closing (and shares of common stock of the Company are not issued in lieu thereof), $18,500, $21,000 or $22,500 worth of shares of common stock of Mobility or Mobility’s successor, depending on the timing of such offering or listing, (b) in the event there is no initial public offering or direct listing of Mobility or Mobility’s successor within 24 months after the Closing, $21,000 worth of shares of common stock of the Company, or (c) at the Company’s option, a combination of cash and common stock of the Company with an aggregate value of $21,000. The aggregate purchase price was $ 30,900 , which included working capital deficit of $ 1,595 and closing date cash of $ 19 . The fair value of the consideration paid in the acquisition consisted of: (a) $6,000 in cash ($4,679 was paid at Closing and $1,321 was paid prior to Closing in the form of a note receivable); (b) $6,782 in aggregate promissory notes; and (c) $18,118 in common stock of Mobility subject to the conditions described above. The payment of shares of common stock of Mobility or Mobility’s successor, if any, will be based on the public offering price per share of such stock in the initial public offering. The payment of shares of common stock of the Company, if any, will be based on the average of the daily-weighted average prices for such stock on each of the 60 days ending on the day prior to issuance thereof. The common stock consideration payable in the amount of $ 18,118 is included within consideration payable on the consolidated balance sheet as of December 31, 2023. The Company engaged a third-party independent valuation specialist to assist in the determination of fair values of tangible and intangible assets acquired and liabilities assumed for Envoy. The final determination of the fair value of assets and liabilities will be completed within the one-year measurement period as required by ASC 805. The Company recognized certain measurement period adjustments, as summarized in the fair values of assets acquired and liabilities assumed in the tables below. Measurement period adjustments are recognized in the reporting period in which the adjustments are determined and calculated as if the accounting had been completed at the acquisition date. The acquisition will necessitate the use of this measurement period to adequately analyze and assess the factors used in establishing the asset and liability fair values as of the relevant acquisition date, including intangible assets, accounts receivable and certain fixed assets. F- 21 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED ENVOY TECHNOLOGIES, INC. - CONTINUED SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Purchase Price Allocation (Preliminary) Measurement Period Adjustments Purchase Price Allocation (As Revised) Purchase Consideration: Cash $ 6,000 $ - $ 6,000 Deferred cash consideration 6,782 - 6,782 Common stock 18,118 - 18,118 Total Purchase Consideration $ 30,900 $ - $ 30,900 Less: Trade name $ 291 $ ( 125 ) $ 166 Customer relationships 4,170 ( 2,245 ) 1,925 Internally developed technology 334 ( 159 ) 175 Non-compete agreements - 11 11 Property and equipment 1,802 - 1,802 Other assets 52 - 52 Notes payable- non current portion ( 24 ) - ( 24 ) Lease liability- non current portion ( 1,730 ) - ( 1,730 ) Debt-free net working capital deficit ( 1,792 ) 197 ( 1,595 ) Fair Value of Identified Net Assets $ 3,103 $ ( 2,321 ) $ 782 Remaining Unidentified Goodwill Value $ 27,797 $ 2,321 $ 30,118 In connection with the acquisition of Envoy, the Company acquired intangible assets in the form of a trade name, customer relationships, internally developed technology and non-compete agreements. The Company used the relief from royalty method when determining the fair value of the acquired trade name and internally developed technology. The fair value was determined by applying an estimated royalty rate to revenues, measuring the value the Company would pay in royalties to a market participant if it did not own the trade name and internally developed technology and had to license it from a third party. The trademark was assigned a useful life of 2 years and the internally developed technology was assigned a useful life of 3 years. When determining fair value of customer relationships, a form of income approach, known as the multi period excess earnings method was used. The fair value was determined by calculating the present value of estimated future operating cash flows generated from the existing customers less costs to realize the revenue. The Company applied a discount rate of 21 %, which reflected the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows. Other significant assumptions used to estimate the fair value of the customer contracts include an assumed income tax rate of 26 %. The customer relationships were assigned a useful life of 5.3 years. The Company used a discounted cash flow model when determining the fair value of the non-compete agreements. Significant assumptions included a discount rate of 21 % and an assumed income tax rate of 26 %. The non-compete agreements were assigned a useful life of 2 years. The fair value of working capital accounts were determined to be the carrying values due to the short-term nature of the assets and liabilities. The fair value of property and equipment was estimated by applying the cost approach. The cost approach uses the replacement or reproduction cost as an indicator of fair value. The assumptions of the cost approach include replacement cost new, projected capital expenditures, and physical deterioration factors including economic useful life, remaining useful life, age, and effective age. As of December 31, 2023, the estimated fair value of the common stock consideration payable was $ 18,118 . The Company uses a probability-weighted discounted cash flow approach as a valuation technique to determine the fair value of the common stock consideration payable on the acquisition date and at each reporting period. The significant unobservable inputs used in the fair value measurements are the probability outcome percentages that are assigned to each scenario. Significant increases or decreases to either of these inputs in isolation could result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the common stock consideration liability. F- 22 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED ENVOY TECHNOLOGIES, INC. – CONTINUED The components of debt free net working capital deficit are as follows: Purchase Price Allocation (Preliminary) Measurement Period Adjustments Purchase Price Allocation (As Revised) Current assets: Cash $ 19 $ - $ 19 Accounts receivable 391 - 391 Prepaid expenses and other current assets 254 - 254 Total current assets $ 664 $ - $ 664 Less current liabilities: Accounts payable $ 853 $ - $ 853 Current portion of lease liability 591 - 591 Current portion of notes payable 7 - 7 Deferred revenue 229 - 229 Accrued expenses and other current liabilities 776 ( 197 ) 579 Total current liabilities $ 2,456 $ ( 197 ) $ 2,259 Net working capital deficit $ ( 1,792 ) $ 197 $ ( 1,595 ) Goodwill was recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired and the amount is attributable to the reputation of the business acquired, the workforce in place and the synergies to be achieved from this acquisition. Goodwill of $ 30,118 from the acquisition of Envoy is not expected to be deductible for income tax purposes. The consolidated financial statements of the Company include the results of operations of Envoy from April 18, 2023 to December 31, 2023 and do not include results of operations for periods prior to April 18, 2023. The results of operations of Envoy from April 18, 2023 to December 31, 2023 included revenues of $ 2,743 and a net loss of $ 2,620 . The following table presents the unaudited pro forma consolidated results of operations for the years ended December 31, 2023 and 2022 as if the acquisition of Envoy occurred at the beginning of fiscal year 2022. The pro forma information provided below is compiled from the preacquisition financial information of Envoy and includes pro forma adjustments to give effect to (i) interest expense related to notes issued as consideration and (ii) amortization expense associated with the acquired intangible assets. The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had the operations of this acquisition actually been acquired at the beginning of fiscal year 2022 or (ii) future results of operations. SCHEDULE OF PROFORMA INFORMATION OF OPERATIONS 2023 2022 For the Years Ended December 31, 2023 2022 (Unaudited) (Unaudited) Revenues $ 140,765 $ 64,509 Net loss $ ( 204,949 ) $ ( 96,358 ) As of the date of the acquisition, the Company expected to collect all contractual cash flows related to receivables acquired in the acquisition. Acquisition-related costs of $ 356 expensed as incurred and are recorded within general and administrative expenses on the consolidated statements of operations. F- 23 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED SEMACONNECT, INC. On June 15, 2022, the Company completed the acquisition of SemaConnect, Inc., a Delaware corporation (“SemaConnect”) pursuant to an Agreement and Plan of Merger, dated as of June 13, 2022 (“Acquisition Agreement”), by and among the Company, Blink Sub I Corp., Blink Sub II LLC, SemaConnect and Shareholder Representative Services LLC (solely in its capacity as the stockholders’ representative). Following the closing of the acquisition, SemaConnect became a wholly owned subsidiary of the Company. SemaConnect is a leading provider of EV charging infrastructure solutions in North America. The aggregate purchase price was $ 200,573 , which included excess working capital of $ 1,229 and closing date cash of $ 3,639 . The consideration paid in the acquisition consisted of: (a) $86,736 in cash, (i) of which $46,136 was paid at the closing of the Acquisition Agreement (“Closing”) and (ii) the remaining $40,600 is payable (bearing interest at 7%) until not earlier than nine months following the Closing and not later than three years following the Closing; and (b) 7,454,975 shares of the Company’s common stock with a fair value of $113,837. Included in the cash consideration was $ 8,103 related to payments due to stock option holders of SemaConnect. Subsequent to the closing of the acquisition, payments to the stock option holder were made after the stock option holder signed an option cash-out agreement. Goodwill was recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired and the amount is attributable to the reputation of the business acquired, the workforce in place and the synergies to be achieved from this acquisition. Goodwill of $ 174,439 from the acquisition of SemaConnect is not expected to be deductible for income tax purposes. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date of SemaConnect: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Purchase Price Allocation Purchase Consideration: Cash $ 46,136 Deferred cash consideration 40,600 Common stock 113,837 Total Purchase Consideration $ 200,573 Less: Trade name $ 1,831 Customer relationships 15,055 Internally developed technology 3,607 Non-compete agreements 241 Property and equipment 614 Right of use asset 1,092 Other assets 449 Deferred revenue- non current portion ( 702 ) Lease liability- non current portion ( 611 ) Debt-free net working capital 4,558 Fair Value of Identified Net Assets $ 26,134 Remaining Unidentified Goodwill Value $ 174,439 F- 24 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED SEMACONNECT, INC. - CONTINUED In connection with the acquisition of SemaConnect, the Company acquired tradename, customer relationships, internally developed technology and non-compete agreements. The Company used the relief from royalty method when determining the fair value of the acquired trademark and internally developed technology. The fair value was determined by applying an estimated royalty rate to revenues, measuring the value the Company would pay in royalties to a market participant if it did not own the trademark and internally developed technology and had to license it from a third party. The trademark was assigned a useful life of two years and the internally developed technology was assigned a useful life of three years. When determining fair value of customer relationships, a form of income approach, known as the multi period excess earnings method was used. The fair value was determined by calculating the present value of estimated future operating cash flows generated from the existing customers less costs to realize the revenue. The Company applied a discount rate of 20 %, which reflected the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows. Other significant assumptions used to estimate the fair value of the customer contracts include an assumed income tax rate of 26 %. The customer relationships were assigned a 5 year useful life. The Company used a discounted cash flow model when determining the fair value of the non-compete agreements, significant assumptions include a discount rate of 20 % and an assumed income tax rate of 26 %. The non-compete agreements were assigned a useful life of two years . The fair value of working capital accounts were determined to be the carrying values due to the short-term nature of the assets and liabilities. F- 25 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED SEMACONNECT, INC. - CONTINUED The fair value of property and equipment was estimated by applying the cost approach. The cost approach uses the replacement or reproduction cost as an indicator of fair value. The assumptions of the cost approach include replacement cost new, projected capital expenditures, and physical deterioration factors including economic useful life, remaining useful life, age, and effective age. The components of debt free net working capital are as follows: Current assets: Cash $ 3,753 Restricted cash 8,103 Accounts receivable 5,515 Inventory 5,472 Prepaid expenses and other current assets 1,309 Total current assets $ 24,152 Less current liabilities: Accounts payable $ 2,305 Merger consideration payable 8,103 Current portion of lease liability 481 Current portion of notes payable 186 Deferred revenue 2,677 Accrued expenses and other current liabilities 5,842 Total current liabilities $ 19,594 Debt free net working capital $ 4,558 The consolidated financial statements of the Company include the results of operations of SemaConnect from June 15, 2022 to December 31, 2022 and do not include results of operations for periods prior to June 15, 2022. The results of operations of SemaConnect from June 15, 2022 to December 31,2022 included revenues of $ 18,411 and a net loss of $ 3,295 . The following table presents the unaudited pro forma consolidated results of operations for the years ended December 31, 2022 and 2021 as if the acquisition of SemaConnect had occurred at the beginning of fiscal year 2021. The pro forma information provided below is compiled from the pre-acquisition financial information of SemaConnect and includes pro forma adjustments for adjustments to certain expenses. The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had the operations of this acquisition actually been acquired at the beginning of fiscal year 2021 or (ii) future results of operations: SCHEDULE OF PROFORMA INFORMATION OF OPERATIONS For the Years Ended December 31, 2022 2021 (Unaudited) (Unaudited) Revenues $ 70,078 $ 33,390 Net loss $ ( 102,444 ) $ ( 69,012 ) The above pro forma information includes pro forma adjustments to give effect to the amortization of the acquired intangible assets to the 2021 historical period. As of the date of the acquisition, the Company expected to collect all contractual cash flows related to receivables acquired in the acquisition. Acquisition-related costs are expensed as incurred and are recorded within general and administrative expenses on the consolidated statements of operations. Acquisition-related costs were $ 3,407 during the year ended December 31, 2022. F- 26 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED ELECTRIC BLUE LIMITED On April 22, 2022, pursuant to a Sale and Purchase Agreement dated April 22, 2022, the Company acquired, through its Dutch subsidiary, Blink Holdings B.V., all of the outstanding capital stock of Electric Blue Limited (“EB”), a private company limited by shares and registered in England and Wales, from its shareholders. Headquartered in St. Albans, United Kingdom, EB is a leading provider of electric vehicle charging and sustainable energy solutions and technologies. EB works with local authorities and businesses to create the infrastructure the United Kingdom needs to meet the 2050 net zero emissions target and prepare for the 2030 ban on the sale of new petrol and diesel cars and vans. The fair value purchase price for the acquisition of all of EB’s outstanding capital stock was $ 19,317 , consisting of $ 12,651 in cash, 152,803 shares of the Company’s common stock with a fair value of $ 2,852 , plus the contingent consideration described in the following paragraph. The fair value of the common stock consideration was determined by the closing price of the Company’s common stock on the acquisition date. In addition, provided EB reaches specified gross revenue or new EV charger installation targets over the three years post-closing, the Company also agreed to issue up to approximately $ 6,400 in additional shares of its common stock to EB shareholders (the “Contingent Consideration”). The Contingent Consideration was recorded at an estimated fair value of $ 3,814 . As of December 31, 2022, the estimated fair value of the Contingent Consideration was $ 1,316 . The Company uses a probability-weighted discounted cash flow approach as a valuation technique to determine the fair value of the contingent consideration liabilities on the acquisition date and at each reporting period. The significant unobservable inputs used in the fair value measurements are projections over the earn-out period, and the probability outcome percentages that are assigned to each scenario. Significant increases or decreases to either of these inputs in isolation could result in a significantly higher or lower liability with a higher liability capped by the contractual maximum of the contingent consideration liabilities. Of the purchase price to be issued to the EB shareholders at closing, approximately $ 650 in cash and 25,466 shares of common stock are being held in escrow accounts for periods of 12 months (cash escrow) and 18 months (stock escrow), respectively, following the closing to cover any losses or damages we may incur by reason of, among other things, any misrepresentation or breach of warranty by EB under the Sale and Purchase Agreement. Goodwill was recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired and the amount is attributable to the reputation of the business acquired, the workforce in place and the synergies to be achieved from this acquisition. Goodwill of $ 10,443 from the acquisition of EB is expected to be deductible for income tax purposes. F- 27 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED ELECTRIC BLUE LIMITED – CONTINUED The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date of EB: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Preliminary purchase price allocation Purchase Price Allocation Purchase Consideration: Cash $ 12,651 Common stock 2,852 Contingent consideration 3,814 Total Purchase Consideration $ 19,317 Less: Trade name $ 500 Customer relationships 4,856 Internally developed technology 515 Non-compete agreements 1,992 Property and equipment 4,325 Deferred revenue- non current portion ( 2,689 ) Debt-free net working capital deficit ( 625 ) Fair Value of Identified Net Assets $ 8,874 Remaining Unidentified Goodwill Value $ 10,443 F- 28 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED ELECTRIC BLUE LIMITED – CONTINUED The components of debt free net working capital are as follows: Purchase Price Allocation Current assets: Cash $ 1,291 Accounts receivable 1,618 Prepaid expenses and other current assets 508 Total current assets $ 3,417 Less current liabilities: Accounts payable $ 647 Current portion of lease liabilities 22 Current portion of notes payable 611 Accrued expenses and other current liabilities 2,762 Total current liabilities $ 4,042 Debt free net working capital deficit $ ( 625 ) The Company used the relief from royalty method when determining the fair value of the acquired trademark and internally developed technology. The fair value was determined by applying an estimated royalty rate to revenues, measuring the value the Company would pay in royalties to a market participant if it did not own the trademark and internally developed technology and had to license it from a third party. The trademark was assigned a useful life of one and half years and the internally developed technology was assigned a useful life of one year. When determining fair value of customer relationships, a form of income approach, known as the multi period excess earnings method was used. The fair value was determined by calculating the present value of estimated future operating cash flows generated from the existing customers less costs to realize the revenue. The Company applied a discount rate of 23 %, which reflected the nature of the assets as they relate to the risk and uncertainty of the estimated future operating cash flows. Other significant assumptions used to estimate the fair value of the customer contracts include an assumed income tax rate of 25 %. The assigned useful life for customer relationships was approximately six years . The Company used a discounted cash flow model when determining the fair value of the non-compete agreements, significant assumptions include a discount rate of 20 % and an assumed income tax rate of 26 % . The non-compete agreements were assigned a useful life of two years . The Company used a Monte-Carlo based simulation model when determining the fair value of the contingent consideration. The model takes into account the Company’s projections as well as an assumed discount rate of 12 %. The fair value of working capital accounts were determined to be the carrying values due to the short-term nature of the assets and liabilities. The fair value of property and equipment was estimated by applying the cost approach. The cost approach uses the replacement or reproduction cost as an indicator of fair value. The assumptions of the cost approach include replacement cost new, projected capital expenditures, and physical deterioration factors including economic useful life, remaining useful life, age, and effective age. F- 29 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED ELECTRIC BLUE LIMITED – CONTINUED Changes in the balance of identified intangible assets and goodwill reflected on the balance sheet are the result of the impact of the change in foreign currency exchange rates. The consolidated financial statements of the Company include the results of operations of EB from April 22, 2022 to December 31, 2022 and do not include results of operations for periods prior to April 22, 2022. The results of operations of EB from April 22, 2022 to December 31, 2022 included revenues of $ 4,601 and a net loss of $ 4,355 . The following table presents the unaudited pro forma consolidated results of operations for the years ended December 31, 2022 and 2021 as if the acquisition of EB had occurred at the beginning of fiscal year 2021. The pro forma information provided below is compiled from the pre-acquisition financial information of EB and includes pro forma adjustments for adjustments to certain expenses. The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had the operations of this acquisition actually been acquired at the beginning of fiscal year 2021 or (ii) future results of operations: SCHEDULE OF PROFORMA INFORMATION OF OPERATIONS For the Years Ended December 31, 2022 2021 (Unaudited) (Unaudited) Revenues $ 62,002 $ 25,076 Net loss $ ( 92,705 ) $ ( 60,076 ) The above pro forma information includes pro forma adjustments to give effect to the amortization of the acquired intangible assets to the 2021 historical period. As of the date of the acquisition, the Company expected to collect all contractual cash flows related to receivables acquired in the acquisition. Acquisition-related costs are expensed as incurred and are recorded within general and administrative expenses on the consolidated statements of operations. Acquisition-related costs were $ 376 during the year ended December 31, 2022. See Note 9 – Fair Value Measurement for additional information. F- 30 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED BLUE CORNER NV On May 10, 2021, pursuant to a Share Purchase Agreement dated April 21, 2021, the Company through its wholly-owned subsidiary in the Netherlands, Blink Holdings, B.V. closed on the acquisition from the shareholders of Blue Corner NV, a Belgian company (“Blue Corner”), of all of the outstanding capital stock of Blue Corner. Headquartered in Belgium, with sales representative offices in several other European cities, Blue Corner owns and operates an EV charging network across Europe. The acquisition of Blue Corner was made to enter the European market and provide an opportunity to expand the Company’s footprint in this region. The purchase price for the acquisition of all of Blue Corner’s outstanding capital stock was approximately $ 23,775 (or € 20,000 ), consisting of approximately $ 22,985 (or € 19,000 ) in cash and approximately $ 790 ( € 700 ) represented by 32,382 shares of the Company’s common stock (the “Consideration Shares”). The fair value of the Consideration Shares was calculated based on the average price of the Company’s common stock during the 30 consecutive trading days immediately preceding the closing date of the Share Purchase Agreement, which equaled $ 37.66 (or € 30.88 ) per share, reduced by a discount for illiquidity due to the 12-month lockup that exists on any sales or transfers. The Company executed management agreements with key Blue Corner personnel, including equity incentive packages consisting of additional shares of the Company’s common stock which is compensatory and not included in the purchase price for this acquisition. The Company entered into an escrow agreement pursuant to the Share Purchase Agreement, under which the Company paid approximately $ 2,100 ( € 1,725 ) of the purchase price into an escrow account for a period of up to 18 months following the closing to cover any losses or damages the Company may incur by reason of any misrepresentation or breach of warranty by Blue Corner under the Share Purchase Agreement. In order to determine the fair values of tangible and intangible assets acquired and liabilities assumed for Blue Corner, the Company engaged a third-party independent valuation specialist to assist in the determination of fair values. The price purchase price allocation was finalized during fiscal 2022 within the one-year measurement period. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the acquisition date of Blue Corner: SCHEDULE OF ASSETS ACQUIRED AND LIABILITIES ASSUMED Purchase price allocation Purchase Consideration: Cash $ 22,985 Common stock 790 Total Purchase Consideration $ 23,775 Less: Fixed assets 1,322 Trade name 343 Customer relationships 1,800 Favorable leases 292 Internally developed technology 1,233 Non-compete agreements 148 Other liabilities (144 ) Other assets 283 Debt-free net working capital deficit (529 ) Fair Value of Identified Net Assets 4,748 Remaining Unidentified Goodwill Value $ 19,027 F- 31 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 3. BUSINESS COMBINATIONS – CONTINUED BLUE CORNER NV - CONTINUED Changes in the balance of identified intangible assets and goodwill reflected on the balance sheet are the result of the impact of the change in foreign currency exchange rates. The components of debt free net working capital are as follows: Current assets: Cash $ 245 Accounts receivable 1,927 Prepaid expenses and other current assets 372 Inventory 1,359 Total current assets 3,903 Less current liabilities: Accounts payable and accrued expenses 4,131 Deferred revenue 301 Total current liabilities 4,432 Debt free net working capital deficit $ (529 ) Goodwill was recorded based on the amount by which the purchase price exceeded the fair value of the net assets acquired and the amount is attributable to the reputation of the business acquired, the workforce in place and the synergies to be achieved from this acquisition. Goodwill of $ 19,027 from the acquisition of Blue Corner is expected to be deductible for income tax purposes. The consolidated financial statements of the Company include the results of operations from Blue Corner as of May 10, 2021 to December 31, 2021 and do not include results of operations for the year ended December 31, 2020. The results of operations of Blue Corner from May 10, 2021 to December 31, 2021 included revenues of $ 7,553 and a net loss of $ 2,567 . The following table presents the unaudited pro forma consolidated results of operations for the year ended December 31, 2021 as if the acquisition of Blue Corner had occurred at the beginning of fiscal year 2020. The pro forma information provided below is compiled from the pre-acquisition financial information of Blue Corner and includes pro forma adjustments for interest expense and adjustments to certain expenses. The pro forma results are not necessarily indicative of (i) the results of operations that would have occurred had the operations of this acquisition actually been acquired at the beginning of fiscal year 2020 or (ii) future results of operations: SCHEDULE OF PROFORMA INFORMATION OF OPERATIONS For the Year Ended December 31, 2021 2020 (Unaudited) (Unaudited) Revenues $ 23,882 $ 10,771 Net loss $ (55,942 ) $ (20,255 ) The above pro forma information includes pro forma adjustments to remove the effect of interest expense recognized in the results of operations of Blue Corner during the years ended December 31, 2021 and 2020 of $ 276 and $ 579 , respectively. F- 32 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 4. PROPERTY AND EQUIPMENT Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2023 2022 December 31, 2023 2022 EV charging stations $ 32,140 $ 22,718 Building 6,847 4,718 Software 2,455 2,137 Automobiles 3,339 2,993 Office and computer equipment 2,503 1,371 Leasehold improvements 986 536 Machinery and equipment 1,065 712 Property and equipment, gross 49,335 35,185 Less: accumulated depreciation ( 14,208 ) ( 9,323 ) Property and equipment, net $ 35,127 $ 25,862 Depreciation and amortization expense related to property and equipment was $ 4,885 , $ 5,432 and $ 1,904 for the years ended December 31, 2023, 2022 and 2021, respectively, of which, $ 4,250 , $ 3,113 and $ 1,531 , respectively, was recorded within cost of sales in the accompanying consolidated statements of operations. During the years ended December 31, 2023, 2022 and 2021, the Company disposed of property and equipment with a net book value of $ 2,731 , $ 463 and $ 798 which resulted in a gain (loss) on disposal of $ 11 , ($ 113 ) and ($ 156 ), respectively, which was included within general and administrative expenses in the consolidated statements of operations. During the years ended December 31, 2023, 2022, and 2021, the Company transferred charging stations of $ 1,786 , $ 5,283 and $ 2,189 from inventory into property and equipment. On January 22, 2021, the Company completed its purchase of approximately 10,000 square feet of office condominium space which became the Company’s corporate headquarters. The purchase price was $ 4,000 , of which, $ 600 was paid in the form of the Company’s common stock ( 13,123 shares) and $ 3,400 in cash. See Note 3 - Business Combination for additional details of the acquisition of property and equipment. Changes in the balance of property and equipment reflected on the balance sheet are the result of the impact of the change in foreign currency exchange rates. F- 33 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 5. INTANGIBLE ASSETS Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS Internal Use Software Capitalized Engineering Costs Trade Name and Patents Customer Relationships Favorable Leases Internally Developed Technology Non-Compete Agreements Accumulated Amortization Total Balance as of January 1, 2022 $ 600 $ 237 $ 340 $ 1,677 $ 272 $ 1,148 $ 139 $ ( 958 ) $ 3,455 Additions 523 - 2,331 19,911 - 4,122 2,233 - 29,120 Foreign currency translation - - 88 ( 190 ) ( 15 ) ( 239 ) ( 119 ) - (475 ) Amortization expense - - - - - - - (5,518 ) (5,518 ) Balance as of December 31, 2022 1,123 237 2,759 21,398 257 5,031 2,253 ( 6,476 ) 26,582 Intangible assets beginning balance 1,123 237 2,759 21,398 257 5,031 2,253 ( 6,476 ) 26,582 Additions 122 1,028 166 1,925 - 175 11 - 3,426 Impairment of intangible assets - - ( 13 ) ( 4,401 ) - ( 218 ) ( 507 ) - (5,139 ) Foreign currency translation - - ( 107 ) ( 698 ) - ( 184 ) ( 27 ) - (1,016 ) Amortization expense - - - - - - - (7,556 ) (7,556 ) Balance as of December 31, 2023 $ 1,245 $ 1,265 $ 2,805 $ 18,224 $ 257 $ 4,804 $ 1,730 $ ( 14,032 ) $ 16,298 Intangible assets ending balance $ 1,245 $ 1,265 $ 2,805 $ 18,224 $ 257 $ 4,804 $ 1,730 $ ( 14,032 ) $ 16,298 Weighted average remaining amortization period at December 31, 2023 (in years) 0.8 0.0 0.0 3.9 0.0 0.2 0.0 Useful Lives 3 Years Indefinite 1.5 Years 5.6 Years 1.6 Years 3 Years 2 Years SCHEDULE OF CHANGES IN ACCUMULATED AMORTIZATION Internal Use Software Capitalized Engineering Costs Trade Name and Patents Customer Relationships Favorable Leases Internally Developed Technology Non-Compete Agreements Accumulated Amortization Balance as of January 1, 2022 $ 207 $ - $ 155 $ 198 $ 109 $ 245 $ 44 $ 958 Foreign currency translation - - ( 65 ) ( 250 ) ( 6 ) ( 100 ) ( 15 ) ( 436 ) Amortization expense 294 - 896 2,547 154 1,254 809 5,954 Balance as of December 31, 2022 501 - 986 2,495 257 1,399 838 6,476 Intangible assets excluding goodwill beginning balance 501 - 986 2,495 257 1,399 838 6,476 Amortization expense 220 - 1,106 4,097 - 1,330 803 7,556 Balance as of December 31, 2023 $ 721 $ - $ 2,092 $ 6,592 $ 257 $ 2,729 $ 1,641 $ 14,032 Intangible assets excluding goodwill ending balance $ 721 $ - $ 2,092 $ 6,592 $ 257 $ 2,729 $ 1,641 $ 14,032 Amortization expense during the years ended December 31, 2023, 2022, and 2021 were $ 7,556 , $ 5,954 , and $ 938 , respectively. The Company determined that the carrying value of certain intangible assets had exceeded its undiscounted cash flows and, as a result, recorded an intangible asset impairment charge of $ 5,143 in the consolidated statements of operations during the year ended December 31, 2023. Changes in the balance of intangible assets and goodwill reflected on the consolidated balance sheet are the result of the impact of the change in foreign currency exchange rates. See Note 3 - Business Combination and Note 6 - Goodwill for additional details. The estimated future amortization expense is as follows: SCHEDULE OF ESTIMATED FUTURE AMORTIZATION EXPENSE For the Years Ending December 31, Total 2024 $ 5,697 2025 4,145 2026 3,378 2027 1,813 Thereafter 1,265 Finite-lived intangible assets, net $ 16,298 F- 34 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 6. GOODWILL During the year ended December 31, 2023, the Company considered the decline in its stock price to be an indicator of impairment and, accordingly, performed a quantitative impairment assessment of its goodwill and intangible assets. This assessment involved comparing the estimated fair value of each of its reporting units to the reporting unit’s carrying value, inclusive of the goodwill balance allocated to the reporting unit. Estimation of the fair value of each reporting unit involved the projection of discounted future cash flows using certain assumptions that are subjective in nature, including assumptions related to historical and market growth rates and gross margin improvements, as well as future operating expense synergies and optimization, among other factors. Based on its analysis, the Company determined that the carrying value exceeded the estimated fair value as of December 31, 2023 in all reporting units. Consequently, the Company recognized a goodwill impairment charge of $ 89,087 in the consolidated statements of operations during the year ended December 31, 2023. The fair value measurements used in the evaluation described above are considered to be Level 3 valuations within the fair value hierarchy, as the measurements involve projections of discounted future cash flows, which are derived from unobservable assumptions, the most subjective of which are the discount rates for each respective reporting unit. The discount rate used in for all reporting units ranged from 20 % to 22.5 %. Changes in goodwill during the years ended December 31, 2023 and 2022 were as follows: SCHEDULE OF GOODWILL 2023 2022 Beginning balance January 1, $ 203,710 $ 19,390 Acquisition of Electric Blue - 10,443 Acquisition of SemaConnect - 174,439 Acquisition of Envoy 30,118 - Acquisition 30,118 - Impairment of goodwill ( 89,087 ) - Effect of translation adjustments 140 ( 562 ) Ending balance December 31, $ 144,881 $ 203,710 F- 35 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 7. NOTES PAYABLE SEMACONNECT- NOTES PAYABLE Amendment to Merger Agreement On August 4, 2023, the Company, SemaConnect LLC, its wholly-owned subsidiary, and Shareholder Representative Services LLC, on behalf of the former stockholders of SemaConnect, Inc. (the “Stockholders’ Representative”), entered into an amendment (the “Amendment”) to the original Agreement and Plan of Merger, dated as of June 13, 2022 (the “Merger Agreement”), pursuant to which the Company acquired SemaConnect. Under the terms of the Amendment, the parties modified the manner by which the “Deferred Merger Consideration” (which remains $ 40,600 , plus accrued interest) will be paid by the Company. As amended, the Company agreed to pay: (a) within 15 days following our consummation of a financing transaction or series of related transactions in excess of $150,000 since the June 2022 closing of the Merger Agreement, $12,500 of the outstanding Deferred Merger Consideration in cash to the former stockholders of SemaConnect (the “Stockholders”), and (b) within 15 days following our consummation of any financing transaction or series of related transactions in excess of $250,000 since the closing of the Merger Agreement, fifty cents of every dollar of proceeds received by the Company in excess of $250,000 to repay the Deferred Merger Consideration until all Deferred Merger Consideration is paid in full to the Stockholders. The Company agreed that its payment obligations will be guaranteed by all of the Company’s U.S. subsidiaries and secured by a security interest on all assets of the Company and its United States subsidiaries. The Company also agreed that such obligations will be due and payable by April 1, 2025, shortening the original due date from June 13, 2025. Each Stockholder will have the right to convert its outstanding Deferred Merger Consideration (after the initial payment of $12,500, including accrued interest) into shares of the Company’s common stock at a conversion price equal to 126% of the seven-day average prior to the date of the Amendment, provided that under no circumstance will the Company be obligated to issue such number of shares equal to or in excess of 20% of the Company’s common stock to the Stockholders, taking into account all common stock previously issued to such holders in the transaction. Under the Amendment, interest on the Deferred Merger Consideration was increased from 7% to 9.5% per annum following the date of the Amendment until full repayment of Deferred Merger Consideration. One half of the accrued interest may be paid in cash and the other half may be paid in-kind. In consideration of the agreement by the Stockholders to enter into the Amendment, the Company agreed to issue 158,372 shares of its common stock with a fair value of $ 1,000 (“Consent Fee”) (based on the average closing price on and over the three days before and after the date of the Amendment) to the Stockholders’ Representative. The Company also agreed to reimburse up to $ 50 of the Stockholders’ Representative’s out-of-pocket expenses. The Amendment was determined to be an extinguishment of debt in accordance with ASC 470. As a result, the Consent Fee of $ 1,000 was accounted for as a loss on extinguishment of notes payable on the consolidated statement of operations during the year ended December 31, 2023. Furthermore, the Company will recognize up to $ 50 of reimbursable legal fees as a debt discount to the face of the note, which will be amortized through interest expense over the term of the note. Repayment During the year ended December 31, 2023, the Company made a payment of $ 12,500 of which $ 9,292 was principle and $ 3,208 was accrued interest. Subsequent to December 31, 2023, the Company repaid the remaining balance of $ 31,308 due under this note. PAYCHECK PROTECTION PROGRAM During the year ended December 31, 2021, the Company obtained forgiveness for its PPP Loans in the amount of $ 856 and recorded a gain on settlement of debt on the consolidated statement of operations for the year ended December 31, 2021. F- 36 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 7. NOTES PAYABLE – CONTINUED OTHER NOTES PAYABLE In connection with the SemaConnect and EB acquisitions, the Company had also assumed certain notes payable; however, $ 681 of principal were subsequently repaid during the year ended December 31, 2022. See Note 3 – Business Combination for details. In connection with the Envoy acquisition, the Company issued notes payable as part of the merger consideration. See Note 3 – Business Combination for details. As of December 31, 2023 and 2022, the Company had an outstanding note payable in the principal amount of $ 10 . 8. DEFERRED REVENUE The Company is the recipient of various private and governmental grants, rebates and marketing incentives. Reimbursements of periodic expenses are recognized as income when the related expense is incurred. Private and government grants and rebates related to EV charging stations and their installation are deferred and amortized in a manner consistent with the recognition of the related depreciation expense of the related asset over their useful lives. Deferred revenue consisted of the following: SCHEDULE OF DEFERRED REVENUE 2023 2022 December 31, 2023 2022 Grant and other $ 346 $ 6,516 Prepaid network, charging and maintenance fees 25,729 9,314 Total deferred revenue 26,075 15,830 Deferred revenue, non-current portion ( 12,462 ) ( 5,258 ) Current portion of deferred revenue $ 13,613 $ 10,572 It is anticipated that deferred revenue as of December 31, 2023 will be recognized as follows: SCHEDULE OF DEFERRED REVENUE RECOGNIZED For the Year Ending December 31, Revenue 2024 $ 13,613 2025 4,477 2026 3,849 2027 2,995 2028 905 Thereafter 236 Total $ 26,075 F- 37 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 9. FAIR VALUE MEASUREMENT Assumptions utilized in the valuation of Level 3 liabilities are described as follows: SUMMARY OF ASSUMPTIONS USED FOR VALUATION OF FAIR VALUE LIABILITIES For the Years Ended December 31, 2023 2022 2021 Risk-free interest rate 4.64 %- 5.46 % 1.63 %- 4.73 % 0.07 %- 0.39 % Contractual term (years) 1.00 1.00 1.00 Expected volatility 67 %- 80 % 74 %- 85 % 90 %- 148 % Expected dividend yield 0.00 % 0.00 % 0.00 % The following table sets forth a summary of the changes in the fair value of Level 3 warrant liabilities that are measured at fair value on a recurring basis: SUMMARY OF CHANGES IN FAIR VALUE OF LEVEL 3 WARRANT LIABILITIES MEASURED AT RECURRING BASIS 2023 2022 Contingent Consideration Beginning balance as of January 1, $ 1,316 $ - Contingent consideration assumed in EB acquisition - 3,814 Change in fair value of contingent consideration ( 1,316 ) ( 2,498 ) Ending balance as of December 31, $ - $ 1,316 Warrant Liability Beginning balance as of January 1 $ 24 $ 90 Change in fair value of warrant liability 8 ( 66 ) Ending balance as of December 31, $ 32 $ 24 Assets and liabilities measured at fair value on a recurring basis are as follows: SUMMARY OF ASSETS AND LIABILITIES MEASURED AT FAIR VALUE RECURRING AND NONRECURRING BASIS December 31, 2023 Level 1 Level 2 Level 3 Total Assets: Alternative fuel credits $ - $ 32 $ - $ 32 Total assets $ - $ 32 $ - $ 32 Liabilities: Option liability $ 293 $ - $ - $ 293 Contingent consideration - - 1,316 1,316 Warrant liability - - 32 32 Common stock liability 743 - - 743 Common stock consideration payable 18,118 - - 18,118 Total liabilities $ 19,154 $ - $ 32 $ 19,186 December 31, 2022 Level 1 Level 2 Level 3 Total Assets: Alternative fuel credits $ - $ 32 $ - $ 32 Total assets $ - $ 32 $ - $ 32 Liabilities: Option liability $ 409 $ - $ - $ 409 Contingent consideration - - 1,316 1,316 Warrant liability - - 24 24 Total liabilities $ 409 $ - $ 1,340 $ 1,749 See Note 3 - Business Combinations for additional details. In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including goodwill, intangible assets, operating lease right of use assets, and property, plant and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized. F- 38 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY AUTHORIZED CAPITAL The Company is authorized to issue 500,000,000 shares of common stock, $ 0.001 par value, and 40,000,000 shares of preferred stock, $ 0.001 par value. The holders of the Company’s common stock are entitled to one vote per share . The preferred stock is designated as follows: 20,000,000 shares to Series A Convertible Preferred Stock; 10,000 shares to Series B Convertible Preferred Stock; 250,000 shares to Series C Convertible Preferred Stock; 13 shares to Series D Convertible Preferred Stock; and 19,727 shares undesignated. OMNIBUS INCENTIVE PLANS On September 7, 2018, the Board of the Company, as well as a majority of the Company’s shareholders approved the Company’s 2018 Incentive Compensation Plan (the “2018 Plan”), which enables the Company to grant stock options, restricted stock, dividend equivalents, stock payments, deferred stock, restricted stock units, stock appreciation rights, performance share awards, and other incentive awards to associates, directors, consultants, and advisors of the Company and its affiliates, and to improve the ability of the Company to attract, retain, and motivate individuals upon whom the Company’s sustained growth and financial success depend, by providing such persons with an opportunity to acquire or increase their proprietary interest in the Company. Stock options granted under the 2018 Plan may be non-qualified stock options or incentive stock options, within the meaning of Section 422(b) of the Internal Revenue Code of 1986, except that stock options granted to outside directors and any consultants or advisers providing services to the Company or an affiliate shall in all cases be non-qualified stock options. The option price must be at least 100 % of the fair market value on the date of grant and if issued to a 10 % or greater shareholder must be at least 110 % of the fair market value on the date of the grant. The 2018 Plan is to be administered by the Compensation Committee of the Board, which shall have discretion over the awards and grants thereunder. The aggregate maximum number of shares of common stock for which stock options or awards may be granted pursuant to the 2018 Plan is 5,000,000 , adjusted as provided in Section 4 of the 2018 Plan. No awards may be issued on or after September 7, 2028. As of December 31, 2023 and 2022, options to purchase 936,245 and 1,060,535 shares of options were outstanding, respectively. As of December 31, 2023 and 2022, 3,619,555 and 2,230,755 shares of common stock, respectively, were outstanding to employees and members of the Board of Directors of the Company. As of December 31, 2023 and 2022, there were 2,756,384 and 2,769,245 securities available for future issuance under the 2018 Plan, respectively. PUBLIC OFFERING In February 2023, the Company completed an underwritten registered public offering of 8,333,333 shares of its common stock at a public offering price of $ 12.00 per share. The Company received approximately $ 100,000 in gross proceeds from the public offering and $ 94,766 in net proceeds after deducting the underwriting discount and offering expenses paid by the Company. The public offering was made pursuant to our automatic shelf registration statement on Form S-3 filed with the SEC on January 6, 2021, and prospectus supplement dated February 8, 2023. Barclays acted as the sole book-running manager for the offering. H.C. Wainwright & Co., Roth Capital Partners and ThinkEquity acted as co-managers for the offering. The underwriters did not exercise the over-allotment granted to them in connection with the offering. In January 2021, the Company completed an underwritten registered public offering of 5,660,000 shares of common stock at a public offering price of $ 41.00 per share. The Company received $ 232,060 in gross proceeds from the public offering, and $ 221,406 in net proceeds after deducting the underwriting discount and offering expenses paid by the Company. The Company’s Chief Executive Officer and one other officer participated in the offering by selling a total of 550,000 shares of the Company’s common stock from the exercise of the underwriter’s option to purchase additional shares. The public offering was made pursuant to the Company’s automatic shelf registration statement on Form S-3 filed with the SEC on January 6, 2021 and prospectus supplement dated January 7, 2021. F- 39 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY – CONTINUED AT-THE-MARKET OFFERING On September 2, 2022, the Company entered into a Sales Agreement (“Sales Agreement”) with Barclays Capital Inc., BofA Securities, Inc., HSBC Securities (USA) Inc., ThinkEquity LLC, H.C. Wainwright & Co., LLC and Roth Capital Partners, LLC (the “Agents”) to conduct an “ATM” equity offering program pursuant to which the Company may issue and sell from time to time shares of our common stock, having an aggregate offering price of up to $ 250,000 through the Agents, as the Company’s sales agents. The Company currently anticipates using the net proceeds from the sale of its shares of common stock under the ATM program to supplement our operating cash flows to fund EV charging station deployment and growth plans. The Company also plans to use any remaining proceeds it receives for working capital and other corporate purposes. The amounts and timing of our use of the net proceeds will depend on a number of factors, such as the timing and progress of our EV charging station deployment efforts, the timing and progress of any partnering and collaboration efforts and technological advances. On November 16, 2023, the Company entered into an Amendment to Sales Agreement, effective as of November 2, 2023 (the “Amendment”), with Barclays Capital Inc., BofA Securities, Inc., HSBC Securities (USA) Inc., H.C. Wainwright & Co., LLC, Roth Capital Partners, LLC and ThinkEquity LLC (the “Agents”), amending the Sales Agreement entered into between the Company and the Agents, dated as of September 2, 2022 (the “Sales Agreement”), relating to the “at-the-market” offering program pursuant to which the Company may issue and sell from time to time shares of its common stock, par value $ 0.001 per share, having an aggregate offering price of up to $ 250,000 through the Agents, as the Company’s sales agents. The Amendment revises the term “Registration Statement” as used in the Sales Agreement to the Company’s new shelf registration statement on Form S-3, as amended (File No. 333-275123), and revises the term “Prospectus Supplement” as used in the Sales Agreement to the Company’s prospectus supplement dated November 2, 2023, relating to the “at-the-market” offering program contemplated by the Sales Agreement. During the year ended December 31, 2023, the Company sold 30,914,695 shares of its common stock pursuant to the ATM program for gross proceeds of approximately $ 116,651 and net proceeds of approximately $ 114,317 after deducting offering expenses. Subsequent to December 31, 2023, the Company sold an aggregate of 8,177,472 shares of common stock aggregate gross proceeds of $ 25,651 and net proceeds of $ 25,136 . COMMON STOCK 2021 During the year ended December 31, 2021, the Company issued 32,382 shares as partial consideration for its acquisition of Blue Corner. During the year ended December 31, 2021, the Company issued an aggregate of 127,841 shares as compensation for services. The shares had an issuance date fair value of $ 3,950 . During the year ended December 31, 2021, the Company issued 13,123 shares as partial consideration for the purchase of property and equipment. See Note 4 – Property and Equipment for additional details. During the year ended December 31, 2021, the Company issued an aggregate of 104,496 shares of common stock pursuant to cashless warrant and options exercises. 2022 During the year ended December 31, 2022, the Company issued an aggregate of 799,048 shares as compensation for services. The shares had an issuance date fair value of $ 6,087 . F- 40 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY – CONTINUED COMMON STOCK - CONTINUED 2023 During the year ended December 31, 2023, the Company issued an aggregate of 557,733 shares of common stock pursuant to exercises of warrants to purchase an aggregate of 557,733 shares of common stock for aggregate net proceeds of $ 835 . During the year ended December 31, 2023, the Company issued an aggregate of 8,235 shares of common stock with an issuance date fair value of $ 35 in satisfaction of a common stock liability. During the year ended December 31, 2023, the Company issued an aggregate of 393,240 shares of the Company’s common stock pursuant to the cashless exercise of 796,940 options and warrants. The options had a weighted average exercise price of $ 3.35 per share and the warrants had a weighted average exercise price of $ 4.25 per share. During the year ended December 31, 2023, the Company received 27,681 shares of common stock with a value of $ 197 which were surrendered by the recipients for payroll tax purposes. These shares were surrendered and cancelled as of December 31, 2023. During the year ended December 31, 2023, the Company issued an aggregate of 370,899 shares of common stock with an issuance date fair value of $ 2,600 in satisfaction of accrued issuable equity to its former Chief Executive Officer. See Note 15 – Commitments and Contingencies – Separation Agreement for additional details. See Note 5 – Notes Payable for details of the issuance of 158,372 shares of common stock in connection with the extinguishment of notes payable. During the year ended December 31, 2023, the Company issued an aggregate of 5,866 shares of common stock for services to a board member with an issuance date fair value of $ 132 . During the year ended December 31, 2023, the Company issued an aggregate of 103,843 shares of common stock with an issuance date fair value of $ 128 as compensation to employees and its former Chief Executive Officer. During the year ended December 31, 2023, the Company issued an aggregate of 376,778 shares of common stock for services to employees with an aggregate issuance date fair value of $ 3,104 . During the year ended December 31, 2023, the Company issued an aggregate of 146,475 shares of common stock for services to an employee with an issuance date fair value of $ 334 . F- 41 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY – CONTINUED STOCK-BASED COMPENSATION The Company recognized stock-based compensation expense related to common stock, stock options and warrants for the years ended December 31, 2023, 2022, and 2021 of $ 22,039 , $ 15,913 , and $ 19,108 , respectively, which is included within compensation expense on the consolidated statement of operations. As December 31, 2023, there was $ 4,000 of unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period of 1.44 years. On July 29, 2022, Michael D. Farkas, the Company’s Chairman and Chief Executive Officer, and other senior executives of the Company who are responsible for the acquisition and integration of SemaConnect were granted one-time performance-based restricted stock awards under the Company’s 2018 Incentive Compensation Plan. A total number of 590,458 shares of common stock, with a market value on the grant date of $ 12,000 , were awarded to the executives. The agreements provide that Messrs. Farkas, Brendan S. Jones, President, Michael P. Rama, Chief Financial Officer, Aviv Hillo, General Counsel, and Harjinder Bhade, Chief Technology Officer, will each receive 472,367 , 47,237 , 23,618 , 23,618 and 23,618 shares of common stock, respectively. The awards of performance-based restricted stock are intended to provide an appropriate incentive structure for the executive management team of the Company to integrate and commercialize the SemaConnect acquisition given the transformational nature of the acquisition in a way that is aligned with stockholder interests. The awards of these performance-based restricted stock become vested based on a series of six performance hurdles that must be achieved before the third anniversary of the grants, as described in greater detail below. In addition to the closing of the SemaConnect acquisition with certain cost savings as the initial 20% vesting event, the vesting of the remaining 80% of the restricted stock is generally determined based on the (i) integration of SemaConnect’ s hardware and software platforms, (ii) integration of its business processes, (iii) integration of its human capital processes, (iv) delivery and execution of a product rationalization roadmap and new production ready units for UL certification, and (v) our common stock’s closing price reaching on average for a period of ten consecutive trading days a price of $ 23.78 , which is 50 % over the price paid by us to SemaConnect shareholders in the acquisition, in each case without regard to the order of achieving the foregoing hurdles. The Board has discretion to determine when each performance hurdle has been achieved and to accelerate awards pursuant to the program. As of December 31, 2022, the vesting performance hurdles related to the closing of the SemaConnect acquisition and clause (v) outlined above was met. WARRANT AND OPTION VALUATION The Company has computed the fair value of certain warrants and options granted using the Black-Scholes option pricing model. Option forfeitures are reduction of previous expensed amount at the time of occurrence. The expected term used for options issued is the estimated period of time that options granted are expected to be outstanding. The Company utilizes the “simplified” method to develop an estimate of the expected term of “plain vanilla” employee option grants. The Company is utilizing an expected volatility figure based on a review of the historical volatility of the Company over a period equivalent to the expected life of the instrument being valued. The risk-free interest rate was determined from the implied yields from U.S. Treasury zero-coupon bonds with a remaining term consistent with the expected term of the instrument being valued. F- 42 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY – CONTINUED STOCK OPTIONS In applying the Black-Scholes option pricing model to options granted, the Company used the following assumptions: SUMMARY OF BLACK-SCHOLES OPTION PRICING MODEL TO STOCK OPTIONS GRANTED ASSUMPTION For the Years Ended December 31, 2023 2022 2021 Risk free interest rate 3.00 %- 4.14 % 2.47 %- 3.25 % 0.09 %- 1.539 % Expected term (years) 5.00 1.00 - 8.00 1.00 - 8.00 Expected volatility 115.9 %- 117.3 % 115 %- 133.4 % 115.3 %- 140.7 % Expected dividends 0.00 % 0.00 % 0.00 % During the year ended December 31, 2021, the Company issued an aggregate of 38,496 shares of the Company’s common stock pursuant to the cashless exercise of options. During the year ended December 31, 2021, the Company issued an aggregate of 136,500 shares of the Company’s common stock pursuant to an option exercise for aggregate net proceeds of $ 307 . During the year ended December 31, 2022, the Company issued an aggregate of 5,955 shares of common stock pursuant to option exercises for aggregate net proceeds of $ 10 . See Note 15 – Commitments and Contingencies – CEO Employment Agreement for details associated with options granted to the Company’s CEO. A summary of the option activity during the year ended December 31, 2023 is presented below: SUMMARY OF OPTIONS ACTIVITY Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Shares Price In Years Value Outstanding, January 1, 2023 1,060,535 $ 24.68 Granted 30,000 18.80 Exercised ( 123,850 ) 1.99 Cancelled/forfeited/expired ( 30,440 ) 19.67 Outstanding, December 31, 2023 936,245 $ 24.68 2.7 $ 253 Exercisable, December 31, 2023 823,954 $ 27.89 2.0 $ 253 F- 43 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY – CONTINUED STOCK OPTIONS – CONTINUED The following table presents information related to stock options at December 31, 2023: SCHEDULE OF STOCK OPTIONS Options Outstanding Options Exercisable Weighted Weighted Range of Average Outstanding Average Exercisable Exercise Exercise Number of Remaining Life Number of Price Price Options In Years Options $ 1.73 -$ 9.14 2.18 206,571 0.7 206,571 $ 15.51 -$ 38.45 34.19 689,142 1.2 587,351 $ 40.82 -$ 59.22 46.50 40,532 0.1 30,032 936,245 2.0 823,954 STOCK WARRANTS Note 9– Fair Value Measurement and elsewhere within this note for additional details. During the year ended December 31, 2021, the Company issued an aggregate of 388,101 shares of the Company’s common stock pursuant to the exercise of warrants at an exercise price of $ 4.25 per share for aggregate gross proceeds of $ 1,619 . During the year ended December 31, 2021, the Company issued 66,000 shares of the Company’s common stock representing a modification of the initial warrant exercise pursuant to a legal settlement. See Note 15 – Commitments and Contingencies – Litigation and Disputes for details. During the year ended December 31, 2022, the Company issued an aggregate of 8,093 shares of common stock pursuant to cashless warrant exercises (of which, warrants to purchase 9,600 shares of common stock with a weighted average exercise price of $ 3.40 per share were exercised) and an aggregate of 73,336 shares of common stock pursuant to warrant exercises for aggregate net proceeds of $ 210 . In applying the Black-Scholes option pricing model to warrants granted, the Company used the following assumptions: SUMMARY OF BLACK-SCHOLES OPTION PRICING MODEL TO WARRANTS GRANTED ASSUMPTION For the Years Ended December 31, 2023 2022 2021 Risk free interest rate 3.39 %- 4.03 % N/A N/A Expected term (years) 5.00 N/A N/A Expected volatility 115.9 %- 133.4 % N/A N/A Expected dividends 0.00 % N/A N/A The following table accounts for the Company’s warrant activity for the year ended December 31, 2023: SCHEDULE OF WARRANT ACTIVITY Weighted Weighted Average Average Remaining Aggregate Number of Exercise Life Intrinsic Shares Price In Years Value Outstanding, January 1, 2023 1,587,965 $ 4.25 Issued 1,145,914 9.69 Exercised ( 1,587,965 ) 4.25 Outstanding, December 31, 2023 1,145,914 $ 4.25 4.2 $ - Exercisable, December 31, 2023 1,145,914 $ 4.25 4.2 $ - F- 44 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 10. STOCKHOLDERS’ EQUITY – CONTINUED STOCK WARRANTS – CONTINUED The following table presents information related to stock warrants at December 31, 2023: SCHEDULE OF STOCK WARRANTS Warrants Outstanding Warrants Exercisable Weighted Weighted Range of Average Outstanding Average Exercisable Exercise Exercise Number of Remaining Life Number of Price Price Warrants In Years Warrants $ 8.82 -$ 11.56 $ 9.69 1,145,914 4.2 1,145,914 1,145,914 4.2 1,145,914 11. INCOME TAXES The Company is subject to U.S. federal and various state income taxes. The income tax provision (benefit) for the years ended December 31, 2023, 2022 and 2021 consisted of the following: SCHEDULE OF INCOME TAX PROVISION (BENEFIT) For the Year Ended December 31, 2023 2022 2021 Federal: Current $ - $ - $ - Deferred $ ( 7,129 ) $ ( 22,605 ) $ ( 5,691 ) State: Current $ - $ - $ - Deferred $ 426 $ ( 1,430 ) $ ( 1,348 ) Foreign: Current $ 1,493 $ 317 $ - Deferred $ ( 7,995 ) $ ( 4,120 ) $ - $ ( 13,205 ) $ ( 27,837 ) $ ( 7,039 ) Change in valuation allowance $ 14,699 $ 28,145 $ 7,039 Income tax provision (benefit) $ 1,494 $ 308 $ - No federal or state current tax provision has been recorded for the years ended December 31, 2023, 2022, and 2021 because the Company had net operating losses for federal and state tax purposes. However, a foreign tax provision was recorded related to the Company’s operations in India. The net operating loss carryovers may be subject to annual limitations under Internal Revenue Code Section 382, and similar state provisions, should there be a greater than 50% ownership change as determined under the applicable income tax regulations. The amount of the limitation would be determined based on the value of the company immediately prior to the ownership change and subsequent ownership changes could further impact the amount of the annual limitation. An ownership change pursuant to Section 382 may have occurred in the past or could happen in the future, such that the NOLs available for utilization could be significantly limited. The Company will perform a Section 382 analysis in the future. The related decrease in the deferred tax asset will be offset by the decrease in valuation allowance. F- 45 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 11. INCOME TAXES – CONTINUED A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: SUMMARY OF RECONCILIATION OF STATUTORY FEDERAL INCOME TAX RATE AND EFFECTIVE INCOME TAX RATE For the Year Ended December 31, 2023 2022 2021 Tax benefit at federal statutory rate ( 21.0 )% ( 21.0 )% ( 21.0 )% State income taxes, net of federal benefit 0.2 % ( 1.3 )% ( 2.4 )% Permanent differences: Stock Compensation 1.5 % 0.6 % 0.2 % Loss on Impairment of Intangibles and Goodwill 9.8 % 0.0 % 0.0 % Section 162(m) 1.9 % 1.7 % 8.3 % Other Permanent Differences 0.2 % 0.7 % ( 0.3 )% Tax credits 0.0 % 0.0 % ( 0.1 )% Income from non-includable foreign entities 1.8 % 4.3 % 1.6 % Prior year differences 2.3 % ( 11.2 )% 1.0 % Change in valuation allowance 7.3 % 30.8 % 12.8 % Foreign tax ( 3.2 )% ( 4.2 )% 0.0 % Effective income tax rate 0.7 % 0.3 % 0.0 % The Company has determined that a valuation allowance for the entire net deferred tax asset is required. A valuation allowance is required if, based on the weight of evidence, it is more likely than not that some or the entire portion of the deferred tax asset will not be realized. After consideration of all the evidence, both positive and negative, management has determined that a full valuation allowance is necessary to reduce the deferred tax asset to zero, the amount that will more likely not be realized. The disaggregation of the Company’s domestic and foreign pre-tax loss for the years ended December 31, 2023, 2022, and 2021 is as follows: SCHEDULE OF DISAGGREGATION OF DOMESTIC AND FOREIGN PRE-TAX LOSS For the Year Ended December 31 2023 2022 2021 U.S. $ ( 151,883 ) $ ( 76,528 ) $ ( 50,803 ) Foreign ( 50,315 ) ( 14,724 ) ( 4,316 ) Total $ ( 202,199 ) $ ( 91,252 ) $ ( 55,119 ) F- 46 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 11. INCOME TAXES – CONTINUED The tax effects of temporary differences that give rise to deferred tax assets and liabilities are presented below: SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES December 31 2023 2022 Deferred Tax Assets: Net operating loss carryforwards-federal $ 64,076 $ 51,722 Net operating loss carryforwards-states 9,837 8,392 Net operating loss carryforwards-UK 4,759 2,584 Net operating loss carryforwards-Belgium 8,454 3,022 Tax credits 656 626 Stock-based compensation 1,542 5,137 Accruals 513 1,425 Deferred revenue 2,052 441 Allowance for doubtful accounts 1,180 441 Goodwill 714 712 Capitalized Sec.174 R&E 1,154 297 Other 633 522 Deferred tax assets, gross 95,569 75,321 Deferred Tax Liabilities: Intangible Assets ( 3,743 ) ( 5,791 ) Fixed Assets ( 2,226 ) ( 488 ) Unrealized Gain/Loss ( 80 ) ( 134 ) Deferred Tax assets reserves - ( 370 ) Other ( 81 ) ( 123 ) Deferred tax liabilities, gross ( 6,129 ) ( 6,905 ) Net deferred tax assets 89,440 68,416 Valuation Allowance ( 89,414 ) ( 68,390 ) Deferred tax assets, net of valuation allowance 26 27 Change in valuation allowance $ 21,024 $ 33,122 As of December 31, 2023, the Company had net operating loss carry forwards for federal income tax purposes of approximately $ 305,125 of which, $ 86,636 may be used to offset future taxable income through 2037 and the remaining $ 218,489 of net operating loss carry forwards incurred after 2017, do not have an expiration date. In addition, state NOLs carryforwards available are approximately $ 212,571 , as of December 31, 2023.The Company also has approximately $ 653 in business credits expiring between 2030 and 2043. F- 47 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 12. RELATED PARTIES JOINT VENTURE The Company and a group of three Cyprus entities entered into a shareholders’ agreement on February 11, 2019, pertaining to the parties’ respective shareholdings in a new joint venture entity, Blink Charging Europe Ltd. (the “Entity”), that was formed under the laws of Cyprus on the same date. The Company owns 40 % of the Entity while the other three parties own 60 % of the Entity. Subsequently, two of the three other parties exited the joint venture and the remaining other party acquired the ownership of the exiting parties. The Entity currently owns 100 % of a Greek subsidiary, Blink Charging Hellas SA (“Hellas”), which operates in the electric vehicle market in Greece. The obligation to fund the future operations of the Entity is limited to the Company’s 40 % ownership. The Company did not record sales to Hellas during the years ended December 31, 2023 and 2022. During the year ended December 31, 2021, the Company recognized sales of $ 811 to Hellas. As of December 31, 2023 and December 31,2022 the Company had a payable of approximately $ 114 and $ 84 , respectively, to Hellas. In addition, the Company has provided working capital of $ 177 and $ 0 as of December 31, 2023 and December 31, 2022, respectively, in Hellas. The Company has written off this working capital contribution, since Company’s proportion of Hellas’s net losses exceed the working capital contribution. The Company determined that the Entity is a variable interest entity; however, the Company does not have a controlling financial interest and, as a result, the Company is not required to consolidate the Entity and instead has applied equity method accounting to its investment in the Entity. From inception through December 31, 2023, the Entity has not generated net income and, as a result, pursuant to ASC 323, the Company has not recorded a gain or loss on its equity method investment in the Entity during the years ended December 31, 2023, 2022, and 2021. BLUE CORNER As of December 31, 2021, the Company owed approximately $ 800 to this supplier. As of December 31, 2022, this related party relationship does not exist since, as of December 31, 2022, those senior management employees are no longer with Blue Corner. During the year ended December 31, 2022, the Company made purchases of $ 1,444 with these related parties. BLINK CHARGING UK LIMITED As of December 31, 2023, several close family members of a senior management employee are providing services to Electric Blue Limited. For the years ended December 31, 2023 and 2022, these related parties have collectively provided services worth $ 359 and $ 95 respectively, to Electric Blue Limited. Furthermore, as of December 31, 2023, there were purchase commitments of $ 198 to the same related parties. F- 48 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 13. EMPLOYEE BENEFIT PLANS The Company has defined-contribution plans for which employees meeting certain age and length of service requirements may contribute up to the defined statutory limit. These plans provide discretionary employer matching contributions to eligible employees up to certain statutory annual limits. Employer contributions to these plans was $ 652 , $ 238 and $ 0 for the years ended December 31, 2023, 2022 and 2021, respectively. 14. LEASES OPERATING LEASES During the year ended December 31, 2021, the Company entered into a lease agreement for approximately 27,540 square feet of space in Arizona. The lease commenced on January 1, 2021 and will terminate on May 31, 2028. The lease includes a build-out allowance of $ 137 . Monthly payments under the lease are $ 18 per month. The lease also includes a security deposit of $ 22 . Total operating lease expenses for the year ended December 31, 2023, 2022, and 2021 were $ 1,803 , $ 789 , and $ 566 , respectively, and is recorded in other operating expenses on the consolidated statements of operations. Operating lease expenses consist of rent expense, common area maintenance adjustments and other expenses. As of December 31, 2023, the Company had $ 697 of right-of-use assets that were classified as financing leases for vehicles associated with the operations of Blink Mobility and are included as a component of property and equipment on the consolidated balance sheet as of December 31, 2023. The duration of the leases are three years and the Company is expected to pay approximately $ 1,020 throughout the term. As of December 31, 2023, the Company did not have additional operating and financing leases that have not yet commenced. During the years ended December 31, 2023 and 2022, the Company recorded $ 37 and $ 38 of interest expense related to finance leases, respectively, which were recorded within interest expense on the consolidated statements of operations. During the years ended December 31, 2023 and 2022, the Company recorded amortization expense of $ 1,226 and $ 659 related to finance leases, respectively. There were no finance leases as of December 31, 2021. F- 49 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 14. LEASES – CONTINUED OPERATING LEASES – CONTINUED Supplemental cash flows information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL CASH FLOWS INFORMATION RELATED TO LEASES 2023 2022 2021 For The Years Ended December 31, 2023 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,672 $ 825 $ 1,019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,672 $ 825 $ 1,019 Financing cash flows from finance leases $ 2,837 $ 217 $ - Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows from finance leases $ 2,837 $ 217 $ - Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,401 $ 1,787 $ 2,129 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 7,401 $ 1,787 $ 2,129 Finance leases $ 2,798 $ 931 $ - Right-of-use assets obtained in exchange for lease obligations: Finance leases $ 2,798 $ 931 $ - Weighted Average Remaining Lease Term Operating leases 2.74 3.66 4.77 Finance leases 1.71 2.50 - Weighted Average Discount Rate Operating leases 7.5 % 4.9 % 4.7 % Finance leases 6.4 % 6.2 % 0.0 % Future minimum payments under non-cancellable leases as of December 31, 2023 were as follows: SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS For the Years Ending December 31, Operating Lease Finance Lease 2024 $ 3,917 $ 580 2025 3,031 115 2026 1,814 30 2027 1,121 26 2028 703 15 Thereafter 1,303 - Total future minimum lease payments 11,888 765 Less: imputed interest ( 1,415 ) ( 90 ) Total $ 10,473 $ 675 F- 50 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 15. COMMITMENTS AND CONTINGENCIES PURCHASE COMMITMENTS As of December 31, 2023, the Company had purchase commitments of approximately $ 21,672 which will become payable upon the suppliers’ delivery of the charging stations and other related items. The purchase commitments were made primarily for future sales, deployments of charging stations, inventory management planning and other related items, all of which are expected to be received during the next 12-24 months. PATENT LICENSE AGREEMENT On March 29, 2012, the Company, as licensee (the “Licensee”) entered into an exclusive patent license agreement with the Executive Chairman of the Board and Balance Holdings, LLC (an entity controlled by the Executive Chairman) (collectively, the “Licensor”), whereby the Company agreed to pay a royalty of 10 % of the gross profits received by the Company from commercial sales and/or use of two provisional patent applications, one relating to an inductive charging parking bumper and one relating to a process which allows multiple EVs to plug into an EV charging station simultaneously and charge as the current becomes available. On March 11, 2016, the Licensee and the Licensor entered into an agreement related to the March 29, 2012 patent license agreement. The parties acknowledged that the Licensee has paid a total of $ 9 in registration and legal fees for the U.S. Provisional Patent Application No. 61529016 (the “Patent Application”) (related to the inductive charging parking bumper) to date. Effective March 11, 2016, the patent license agreement, solely with respect to the Patent Application and the parties’ rights and obligations thereto, was terminated. The Executive Chairman of the Board agreed to be solely responsible for all future costs and fees associated with the prosecution of the patent application. In the event the Patent Application is successful, the Executive Chairman of the Board shall grant a credit to the Licensee in the amount of $9 to be applied against any outstanding amount(s) owed to him. If the Licensee does not have any outstanding payment obligations to the Executive Chairman of the Board at the time the Patent Application is approved, the Executive Chairman of the Board shall remit the $9 to the Licensee within twenty (20) days of the approval. The parties agreed to a mutual release of any claims associated with the patent license agreement. As of December 31, 2022, the Company has not paid nor incurred any royalty fees related to this patent license agreement. LITIGATION, DISPUTES AND SETTLEMENTS The Company may be subject to lawsuits, investigations, intellectual property matters, claims and proceedings, including, but not limited to, contractual disputes with vendors and customers and liabilities related to employment, health and safety matters that may arise in the ordinary course of business. The Company accrues for losses that are both probable and reasonably estimable. Loss contingencies are subject to significant uncertainties and, therefore, determining the likelihood of a loss and/or the measurement of any loss can be complex and subject to change. The Company believes it has recorded adequate provisions for any such lawsuits, investigations, claims, and proceedings as of December 31, 2023, and the Company believes it was not reasonably possible that a material loss had been incurred in excess of the amounts recognized in the consolidated financial statements. Given the inherent uncertainties of litigation, the ultimate outcome of the ongoing matters described herein cannot be predicted with certainty. While litigation is inherently unpredictable, the Company believes it has valid defenses with respect to the legal matters pending against it. However, future events or circumstances, currently unknown to management, may potentially have a material effect on the Company’s financial position, liquidity or results of operations in any future reporting period. F- 51 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 15. COMMITMENTS AND CONTINGENCIES – CONTINUED LITIGATION, DISPUTES AND SETTLEMENTS – CONTINUED On August 24, 2020, a purported securities class action lawsuit, captioned Bush v. Blink Charging Co. et al., Case No. 20-cv-23527, was filed in the United States District Court for the Southern District of Florida against the Company, Michael Farkas (Blink’s Chairman of the Board and Chief Executive Officer), and Michael Rama (Blink’s Chief Financial Officer) (the “Bush Lawsuit”). On September 1, 2020, another purported securities class action lawsuit, captioned Vittoria v. Blink Charging Co. et al., Case No. 20-cv-23643, was filed in the United States District Court for the Southern District of Florida against the same defendants and seeking to recover the same alleged damages (the “Vittoria Lawsuit”). On October 1, 2020, the court consolidated the Vittoria Lawsuit with the Bush Lawsuit and on December 21, 2020 the court appointed Tianyou Wu, Alexander Yu and H. Marc Joseph to serve as the Co-Lead Plaintiffs. The Co-Lead Plaintiffs filed an Amended Complaint on February 19, 2021. The Amended Complaint alleges, among other things, that the defendants made false or misleading statements about the size and functionality of the Blink Network and asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Amended Complaint does not quantify damages but seeks to recover damages on behalf of investors who purchased or otherwise acquired Blink’s common stock between March 6, 2020 and August 19, 2020. On April 20, 2021, Blink and the other defendants filed a motion to dismiss the Amended Complaint, which has now been fully briefed and is ready for review. On April 7, 2022, the court held oral argument on the motion to dismiss but did not issue a decision. The Company wholly and completely disputes the allegations therein. The Company has retained legal counsel in order to defend the action vigorously. The Company has not recorded an accrual related to this matter as of December 31, 2023 as it determined that any such loss contingency was either not probable or estimable. On September 15, 2020, a shareholder derivative lawsuit, captioned Klein (derivatively on behalf of Blink Charging Co.) v. Farkas et al., Case No. 20- 19815CA01, was filed in Miami-Dade County Circuit Court seeking to pursue claims belonging to the Company against Blink’s Board of Directors and Michael Rama (the “Klein Lawsuit”). Blink is named as a nominal defendant. The Klein Lawsuit asserts that the Director defendants caused Blink to make the statements that are at issue in the securities class action and, as a result, the Company will incur costs defending against the consolidated Bush Lawsuit and other unidentified investigations. The Klein Lawsuit asserts claims against the Director defendants for breach of fiduciary duties and corporate waste and against all of the defendants for unjust enrichment. Klein did not quantify the alleged damages in his complaint, but he seeks damages sustained by the Company as a result of the defendants’ breaches of fiduciary duties, corporate governance changes, restitution, and disgorgement of profits from the defendants and attorneys’ fees and other litigation expenses. The parties agreed to temporarily stay the Klein Lawsuit until there is a ruling on the motion to dismiss filed in the consolidated Bush Lawsuit. On June 17, 2022, the court substituted the executrix of Klein’s estate as the plaintiff. The Company has not recorded an accrual related to this matter as of December 31, 2023 as it determined that any such loss contingency was either not probable or estimable. On December 23, 2020, another shareholder derivative action, captioned Bhatia (derivatively on behalf of Blink Charging Co.) v. Farkas et al., Case No. 20-27632CA01, was filed in Miami-Dade County Circuit Court against the same defendants sued in the Klein Lawsuit and asserting similar claims, as well as additional claims relating to the Company’s nomination, appointment and hiring of minorities and women and the Company’s decision to retain its outside auditor (the “Bhatia Lawsuit”). On February 17, 2021, the parties agreed to consolidate the Klein and Bhatia actions, which the court consolidated under the caption In re Blink Charging Company Stockholder Derivative Litigation, Lead Case No. 2020-019815-CA-01. The parties also agreed to keep in place the temporary stay. The court subsequently vacated the consolidation order and explained the parties should first file a motion to transfer, which the parties have done. On June 22, 2022, the court re-consolidated the Klein and Bhatia actions and reinstated the temporary stay. The Company wholly and completely disputes the allegations therein. The Company has retained legal counsel in order to defend the action vigorously. The Company has not recorded an accrual related to this matter as of December 31, 2023 as it determined that any such loss contingency was either not probable or estimable. F- 52 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 15. COMMITMENTS AND CONTINGENCIES – CONTINUED LITIGATION, DISPUTES AND SETTLEMENTS – CONTINUED On February 12, 2021, another shareholder derivative lawsuit, captioned Wolery (derivatively on behalf of Blink Charging Co.) v. Buffalino et al., Case No. A-21-829395-C, was filed in the Eighth Judicial District Court in Clark County, Nevada seeking to pursue claims belonging to the Company against Blink’s Board of Directors (the “Wolery Lawsuit”). Blink is named as a nominal defendant. The Wolery complaint alleges that the amount of restricted stock awarded to Blink’s outside directors in December 2020 exceeded the amounts permitted by Blink’s incentive compensation plan. The complaint asks the court to rescind the excess restricted stock awards, as well as other relief. On September 15, 2021, the parties entered into a term sheet in which they agreed to settle the claims subject to the court’s approval. On April 18, 2022, the court signed a final judgment approving the settlement and dismissing the lawsuit with prejudice. As a result of the settlement, the Company has agreed to make certain changes to its compensation practices for its directors and officers, including, among other things, eliminating the practice of making cash payments to directors to cover expected income taxes on stock grants and placing a $ 200 annual limit for two years on the combined stock and cash awards to outside directors. The defendants did not admit any liability or wrongdoing in the settlement and will not make any cash payment as part of the settlement, but the Company will be responsible for paying the costs to give notice of the settlement to the Company’s shareholders and to pay $ 190 in attorney’s fees to the plaintiff’s counsel which was paid in April 2022. On February 7, 2022, another shareholder derivative lawsuit, captioned McCauley (derivatively on behalf of Blink Charging Co.) v. Farkas et al., Case No. A-22-847894-C, was filed in the Eighth Judicial District Court in Clark County, Nevada, seeking to pursue claims belonging to the Company against six of Blink’s directors and Michael Rama (the “McCauley Lawsuit”). Blink is named as a nominal defendant. The complaint filed in the McCauley Lawsuit asserts similar allegations to the Klein Lawsuit relating to the statements at issue in the securities class action and asserts claims for breach of fiduciary duty and unjust enrichment. The McCauley Lawsuit seeks both injunctive and monetary relief from the individual defendants, as well as an award of attorneys’ fees and costs. On March 29, 2022, the Nevada court approved the parties’ stipulation to temporarily stay the McCauley Lawsuit until there is a ruling on the motion to dismiss filed in the consolidated Bush Lawsuit. The Company has not recorded an accrual related to this matter as of December 31, 2023 as it determined that any such loss contingency was either not probable or estimable. F- 53 BLINK CHARGING CO. Notes to Consolidated Financial Statements (in thousands, except for share and per share amounts) 15. COMMITMENTS AND CONTINGENCIES – CONTINUED WARRANTY The Company estimates an approximate cost of $ 600 to repair deployed chargers, which the Company owns as of December 31, 2023. SEPARATION AGREEMENT On June 21, 2023, the Company and its former Chief Executive Officer Michael D. Farkas entered into a separation and general release agreement, dated as of June 20, 2023 (the “Separation Agreement”) pursuant to Mr. Farkas’ May 1, 2023 termination of employment and the terms of Mr. Farkas’ employment agreement, effective as of January 1, 2021 (the “Employment Agreement”). The Separation Agreement became effective on June 28, 2023, following a statutory revocation period. Under the terms of the Separation Agreement, the Company agreed to provide Mr. Farkas with (i) $ 6,028 in cash compensation, (ii) 383,738 shares of the Company’s common stock and (iii) reimbursement for medical benefits under COBRA for 24 months or until Mr. Farkas becomes eligible for coverage under another employer’s group plan. In addition, Mr. Farkas’ outstanding issued and unvested equity awards became vested and, as a result, the Company recognized approximately $ 2,900 of stock-based compensation expense during the year ended December 31, 2023 related to the accelerated awards. In return, Mr. Farkas agreed that he has received all compensation to which he is entitled with respect to his employment or termination thereof (except for any obligations under the parties’ Commission Agreement, dated as of November 17, 2009) and Mr. Farkas released the Company from all claims that he might have related to his employment. Further, Mr. Farkas acknowledged that the terms of his non-competition and non-solicitation covenants under his Employment Agreement remain in effect, except that Mr. Farkas will be permitted to continue to work with certain individuals with whom he has a current relationship outside of the Company. During the year ended December 31, 2023, the Company issued 383,738 shares of common stock with an issuance date fair value of $ 2,900 to Mr. Farkas in connection with the Separation Agreement. MATERIAL AGREEMENT In October 2021, the Company negotiated and executed an amendment and extension to its agreement with a contract manufacturer of the Company. The amendment extends the term of the agreement for an additional five (5) years. Accordingly, the Company could potentially incur additional costs related to units ordered that were subsequently canceled or otherwise not fulfilled. 16. SUBSEQUENT EVENTS AT-THE-MARKET OFFERING Subsequent to December 31, 2023, the Company sold an aggregate of 8,177,472 shares of common stock aggregate gross proceeds of $ 25,651 and net proceeds of $ 25,136 . F- 54