Item 2. Management’s Discussion and Analysis
ITEM
2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Special
Note Regarding Forward-Looking Information
The
following discussion and analysis of the results of operations and financial condition of Blink Charging Co. (together with its subsidiaries,
“Blink” or the “Company”) as of June 30, 2026 and for the six months ended June 30, 2026 and 2025 should be read
in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this Quarterly
Report on Form 10-Q. References in this Management’s Discussion and Analysis of Financial Condition and Results of Operations to
“us,” “we,” “our” and similar terms refer to Blink. This Quarterly Report contains forward-looking
statements as that term is defined in the federal securities laws. The events described in forward-looking statements contained in this
Quarterly Report may not occur. Generally, these statements relate to business plans or strategies, projected or anticipated benefits
or other consequences of our plans or strategies, projected or anticipated benefits from acquisitions to be made by us, or projections
involving anticipated revenues, earnings or other aspects of our operating results. The words “may,” “will,”
“expect,” “believe,” “anticipate,” “project,” “plan,” “intend,”
“estimate,” and “continue,” and their opposites and similar expressions, are intended to identify forward-looking
statements. We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties,
risks and other influences, many of which are beyond our control, which may influence the accuracy of the statements. Factors that may
affect our results include, but are not limited to, the risks and uncertainties set forth under Part I, Item 1A, “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, and under a similar item in subsequent periodic
reports, as discussed elsewhere in this Quarterly Report, particularly in Part II, Item 1A - Risk Factors.
Any
one or more of these uncertainties, risks and other influences, could materially affect our results of operations and whether forward-looking
statements made by us ultimately prove to be accurate. Our actual results, performance and achievements could differ materially from
those expressed or implied in these forward-looking statements. Except as required by federal securities laws, we undertake no obligation
to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.
U.S.
dollars are reported in thousands, except for share and per share amounts.
Overview
We
are a leading owner, operator, and provider of 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 locations. Blink’s principal line of products and services is its Blink Networks and Blink EV charging
equipment, also known as EVSE, and other EV-related services. The Blink Networks are 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 Partners, among other types of commercial customers, 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 (as applicable).
To
capture more revenues derived from providing EV charging equipment to commercial customers and to help differentiate Blink in the EV
infrastructure market, Blink offers Property Partners a comprehensive range of solutions for EV charging equipment and services that
generally fall into one of the business models below, differentiated by who owns the equipment and who bears the costs of installation,
equipment, maintenance, and the percentage of revenue shared.
●
In
our Blink-owned turnkey business model, we incur the charging equipment and installation costs. We own and operate the EV charging
station and provide connectivity of the charging station to the Blink Networks. In this model, which favors recurring revenues, we
incur most costs associated with the EV charging stations; thus, we retain substantially all EV charging revenues after deducting
network connectivity and processing fees. Our agreement with the Property Partner typically lasts nine years, with extensions that
can bring it to 27 years.
●
In
our Blink-owned hybrid business model, we typically incur the charging equipment costs while the Property Partner incurs the installation
costs. We own and operate the EV charging station and provide connectivity to the Blink Networks. In this model, since the Property
Partner typically incurs the installation costs; we share a more generous portion of the EV charging revenues with the Property Partner
after deducting Blink network connectivity and processing fees. Our agreement with the Property Partner typically lasts seven years,
with extensions that can bring it to 21 years.
●
In
our host-owned business model, the Property Partner purchases, owns, and operates the Blink EV charging station and incurs the installation
costs. We work with the Property Partner by providing site recommendations, connectivity to the Blink Networks, payment processing,
and optional maintenance services. In this model, the Property Partner retains and keeps all the EV charging revenues after deducting
Blink network connectivity and processing fees.
As
of June 30, 2026, there were approximately 48,015 chargers connected to the Blink Network. Of those, approximately 44,832 were Level
2 commercial chargers and approximately 2,039 DCFC were commercial chargers. Included on Blink Network are approximately 6,804 chargers
owned by us. Another estimated 23,820 units were non-networked, on other networks, international sales, or deployments.
19
Product
and Service Offerings
We
offer a variety of EV charging products and services to Property Partners and EV drivers.
EV
Charging Solutions
●
Level
2 Charging Equipment. We offer a wide range of Level 2 (AC) EV charging equipment, for commercial, residential, and public locations.
Our Level 2 chargers support the J1772 connector, the North American Charging Standard (NACS) connector, and the Type 2 connector
used in Europe.
Our
commercial Level 2 chargers consist of the EQ product family in Europe and the United Kingdom
and the Series 7, Series 8, and Series 10 product families in North America. We also offer
the Shasta charger, a next-generation Level 2 platform designed to support ISO 15118 and
“Plug & Charge” functionality. Certain Level 2 chargers offer optional cable
management systems and connectivity to the Blink Network. Level 2 charging stations typically
provide a full vehicle charge in approximately five to ten hours and are commonly deployed
at workplaces, multifamily residential properties, retail and hospitality locations, parking
facilities, such as those operated by municipalities, educational campuses, healthcare facilities,
and airports.
●
International
Products. We offer Level 2 AC and DC charging products for international markets, including multifamily residential, workplace,
retail, parking, hospitality, and fleet applications. These products are available with the Type 2, GBT, and CCS2 connectors and
include Blink branded chargers and other hardware sourced or configured to meet regional and customer specific
requirements .
●
DC
Fast Charging (DCFC ). We offer a complete line of DC Fast Charging equipment that ranges from 30kW to 600kW. Our DCFC products
support NACS, CCS1, CHAdeMO connectors and are capable of producing up to an 80% battery charge in less than 30 minutes, depending
on vehicle and conditions. DC fast charging stations typically require greater electrical infrastructure than Level 2 chargers and
are deployed in high-traffic urban locations and along long-distance travel corridors. Our DCFC portfolio includes both all-in-one
chargers and distributed cabinet and dispenser systems.
●
Blink
Networks. The Blink Networks are a cloud-based software platform that supports the operation and management of EV charging stations.
The platform enables remote monitoring, management, payment processing, customer support, load management, roaming, reporting, and
other network services.
●
Blink
Charging Mobile App. We offer Blink Charging Mobile Apps for iOS and Android devices that allow EV drivers to locate charging
stations, view charger availability and charging speeds, initiate and pay for charging sessions, and manage their charging activity.
●
Energy
Management and Fleet Management. We offer energy management and fleet focused software solutions designed to help commercial,
municipal, and other fleet operators manage charging operations and optimize energy usage and costs. These solutions may be deployed
as standalone offerings or integrated with existing fleet and charging management systems.
20
Key
Factors Affecting Operating Results
We believe our performance and future success depend on several factors, including those discussed below:
Competition
- The EV charging equipment and service market is highly competitive, and we expect the market to become increasingly competitive
as new entrants enter this growing market. Our products and services compete on product performance and features, the total cost of ownership,
origin of manufacturing, sales capabilities, financial stability, brand recognition, product reliability, customer experience, and the
installed base’s size. Existing competitors may expand their product offerings and sales strategies, and new competitors may enter
the market. If our market share decreases due to increased competition, the Company’s revenue and ability to generate profits in
the future may be impacted.
Growth
- Our growth is highly dependent upon the adoption by consumers of EVs, and we are subject to a risk of any reduced demand for EVs. The
market for electric vehicles is still relatively new, rapidly evolving, characterized by rapidly changing technologies, price competition,
additional competitors, evolving government regulation and industry standards, frequent new vehicle announcements, long development cycles
for EV original equipment manufacturers, and changing consumer demands and behaviors. Factors that may influence the purchase and use
of electric vehicles, include perceptions about EV quality, safety (in particular with respect to battery chemistries), design, performance,
and cost; the limited range over which EVs may be driven on a single battery charge and concerns about running out of power while in
use; improvements in the fuel economy of the internal combustion engine; consumers’ desire and ability to purchase a luxury automobile
or one that is perceived as exclusive; the environmental consciousness of consumers; volatility in the cost of oil and gasoline; consumers’
perceptions of the dependency of the United States on oil from unstable or hostile countries and the impact of international conflicts;
government regulations and economic incentives promoting fuel efficiency and alternate forms of energy; access to charging stations,
standardization of EV charging systems and consumers’ perceptions about convenience and cost to charge an EV; and the availability
of tax and other governmental incentives to purchase and operate EVs and future regulation requiring increased use of zero emissions
vehicles. If the market for EVs does not gain broad market acceptance or develops slower than we expect, our business, prospects, financial
condition and operating results may be adversely affected.
Regulations
- Our business is subject to a variety of federal, state and international laws and regulations, including those with respect to
government incentives promoting fuel efficiency and alternate forms of energy, electric vehicles and others. These laws and regulations,
and the interpretation or application of these laws and regulations, could change. Any reduction, elimination or discriminatory application
of government subsidies and economic incentives because of policy changes, fiscal tightening or other reasons may result in diminished
revenues from government sources and diminished demand for our products. In addition, new laws or regulations affecting our business
could be enacted. These laws and regulations are frequently costly to comply with and may divert a significant portion of management’s
attention. Changes to these applicable laws or regulations could affect business and/or harm our customers, thereby adversely affecting
our business, financial condition and results of operations.
Expansion
through Acquisitions - We may pursue strategic domestic and international acquisitions to expand our operations. Risks in acquisition
transactions include difficulties in the integration of acquired businesses into our operations and control environment, difficulties
in assimilating and retaining employees and intermediaries, difficulties in retaining the existing clients of the acquired entities,
assumed or unforeseen liabilities that arise in connection with the acquired businesses, the failure of counterparties to satisfy any
obligations to indemnify us against liabilities arising from the acquired businesses, and unfavorable market conditions that could negatively
impact our growth expectations for the acquired businesses. Fully integrating an acquired company or business into our operations may
take a significant amount of time. If we are unable to integrate or pursue strategic acquisitions, our financial condition and results
of the operations would be negatively impacted.
Liquidity,
Capital Resources, and Going Concern
As
of June 30, 2026, the Company had cash and cash equivalents of $34,004 compared to $39,568 in cash and cash equivalents as of December
31, 2025, representing a decrease of $5,564 in available liquidity due to ongoing operating losses and working capital requirements.
In
May 2025, we announced the BlinkForward Initiative, a strategic restructuring plan aimed at accelerating the Company’s path to profitability
and enhancing operational efficiency. Key pillars of the BlinkForward Initiative were designed to transform the Company into a more agile
and lean organization. This included a significant reduction in our global workforce from 513 to 290 as of the filing of
this Quarterly Report, reductions in other operating, general and administrative expenses, and a shift to contract manufacturing for
our EV hardware to reduce overhead expenses and focus on our intellectual property and customer support efforts. The transition to contract
manufacturing was completed in January 2026, and Blink no longer maintains manufacturing facilities in-house.
As
reflected in our condensed consolidated financial statements as of June 30, 2026, we had cash and cash equivalents of $34,004,
working capital of $10,264 and an accumulated deficit of $840,028. During the six months ended June 30, 2026, we incurred a net loss
of $17,602. We have not yet achieved profitability. In December 2025, we completed an underwritten registered public offering of
26,666,666 shares of our common stock at a public offering price of $0.75 per share. We received gross proceeds of $20,000 from the
public offering, less underwriting discounts and offering expenses of $1,474, for net proceeds of $18,526. The public offering was
made pursuant to our registration statement on Form S-1 filed with the SEC on December 4, 2025, and final prospectus dated December
10, 2025. H.C. Wainwright & Co. and Roth Capital Partners acted as co-placement agents in connection with the
offering.
We
have not yet achieved profitability and expect cash flows from operations to be volatile. While the BlinkForward Initiative substantially
decreased our operating expenses and cash burn, we still need to generate substantial revenues in the near future to achieve profitability,
even as our repeatable and recurring revenue from network and charging fees continues to grow. Historically, we have been able to raise
funds to support our business operations, although there can be no assurance that we will be successful in raising significant additional
funds in the future. We expect that our cash on hand and future cash flows from operations will fund our operations for at least 12 months
after the issuance date of the financial statements included in this Quarterly Report.
Since
inception, our operations have primarily been funded through proceeds received in equity and debt financings. We believe we have access
to capital resources and continue to evaluate additional financing opportunities. There is no assurance that we will be able to obtain
funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds we might raise will enable us
to complete our EV charging development initiatives or attain profitable operations.
21
Results
of Operations
Three
and Six Months Ended June 30, 2026 Compared With Three and Six Months Ended June 30, 2025
For
The Three Months Ended
For
The Six Months Ended
June
30,
June
30,
3
Months
6
Months
2026
2025
2026
2025
Difference
$
Difference
%
Difference
$
Difference
%
Revenues:
Product
revenue
$
7,439
$
14,509
$
13,633
$
22,889
$
(7,070
)
-49
%
$
(9,256
)
-40
%
Service
revenue
11,484
10,809
23,714
20,315
675
6
%
3,399
17
%
Other
revenue
1,928
2,276
3,164
3,933
(348
)
-15
%
(769
)
-20
%
Car-sharing
revenue
823
1,111
1,942
2,286
(288
)
-26
%
(344
)
-15
%
Total
Revenues
21,674
28,705
42,453
49,423
(7,031
)
-24
%
(6,970
)
-14
%
Cost
of Revenues:
Cost
of product revenue
4,948
14,074
8,671
19,622
(9,126
)
-65
%
(10,951
)
-56
%
Cost
of service revenue
5,823
6,222
13,202
11,503
(399
)
-6
%
1,699
15
%
Cost
of other revenue
766
1,302
1,575
2,142
(536
)
-41
%
(567
)
-26
%
Cost
of car-sharing revenue
598
1,067
1,632
1,752
(469
)
-44
%
(120
)
-7
%
Depreciation
and amortization
1,098
1,208
2,293
2,503
(110
)
-9
%
(210
)
-8
%
Total
Cost of Revenues
13,233
23,873
27,373
37,522
(10,640
)
-45
%
(10,149
)
-27
%
Gross
Profit
8,441
4,832
15,080
11,901
3,609
75
%
3,179
27
%
Operating
Expenses:
Compensation
8,352
13,767
18,515
27,321
(5,415
)
-39
%
(8,806
)
-32
%
General
and administrative expenses
1,750
10,686
5,302
17,899
(8,936
)
-84
%
(12,597
)
-70
%
Other
operating expenses
4,122
6,725
7,755
12,074
(2,603
)
-39
%
(4,319
)
-36
%
Depreciation
and amortization
1,715
1,432
2,782
3,087
283
20
%
(305
)
-10
%
Change
in fair value of consideration payable and earn-out liabilities
(1,273
)
1,784
(1,273
)
2,463
(3,057
)
-171
%
(3,736
)
-152
%
Total
Operating Expenses
14,666
34,394
33,081
62,844
(19,728
)
-57
%
(29,763
)
-47
%
Loss
From Operations
(6,225
)
(29,562
)
(18,001
)
(50,943
)
23,337
-79
%
32,942
-65
%
Other
Income (Expense):
Other
income, net
250
345
492
746
(95
)
-28
%
(254
)
-34
%
-
-
Total
Other Income, Net
250
345
492
746
(95
)
-28
%
(254
)
-34
%
Loss
Before Income Taxes
$
(5,975
)
$
(29,217
)
$
(17,509
)
$
(50,197
)
$
23,242
-80
%
$
32,688
-65
%
Provision
for income taxes
(64
)
(95
)
(93
)
(123
)
31
-33
%
30
-24
%
Net
Loss
$
(6,039
)
$
(29,312
)
$
(17,602
)
$
(50,320
)
$
23,273
-79
%
$
32,718
-65
%
22
Three
Months Ended June 30, 2026 Compared With Three Months Ended June 30, 2025
Revenues
Total
revenue for the three months ended June 30, 2026 decreased by $7,031 or 24%, to $21,674 compared to $28,705 during the three months ended
June 30, 2025.
Revenue
from product sales was $7,439 for the three months ended June 30, 2026 as compared to $14,509 during the three months ended June 30,
2025, a decrease of $7,070, or 49%. The decrease was primarily attributable to the Company’s strategic repositioning toward higher-margin market segments
and more disciplined customer selection, including a reduction in lower-margin product sales. Product revenue was also adversely affected
by continued softness in the electric vehicle charging market, particularly lower demand for commercial Level 2 chargers and DC fast chargers,
compared to the prior-year period.
Charging
service revenue from Blink-owned charging stations was $11,484 for the three months ended June 30, 2026 as compared to $10,809 for
the three months ended June 30, 2025, an increase of $675 or 6%. The increase is due to the higher utilization of the chargers and
deployment of new chargers on the Blink Networks.
Cost
of Revenues
Cost
of revenues primarily consists of electricity reimbursements, revenue share payments to our Property Partner hosts, the cost of charging
stations sold, connectivity charges provided by telco and other networks, warranty, repairs and maintenance services, and depreciation
of our installed charging stations. Cost of revenues for the three months ended June 30, 2026 were $13,233 as compared to $23,873 for
the three months ended June 30, 2025, a decrease of $10,640 or 45%, and in line with the decline in the product revenues as discussed above.
There
is a degree of variability in our costs in relationship to our revenues from period to period, primarily due to:
●
electricity
reimbursements that are unique to those Property Partner host agreements which provide for such reimbursements;
●
revenue
share payments are predicated on the contractual obligation under the property partner agreement and the revenue generated by the
applicable chargers;
●
cost
of charging stations sold is predicated on the mix of types of charging stations and parts sold during the period;
●
network
costs are fixed in nature based on the number of chargers connected to the telco network regardless of whether the charger generates
revenue;
●
provisions
for excess and obsolete inventory; and
●
warranty
and repairs and maintenance expenses are based on both the number of service cases completed during the period.
Cost
of product sales decreased by $9,126, or 65%, from $14,074 for the three months ended June 30, 2025 as compared to $4,948 for the
three months ended June 30, 2026. Approximately $4,720 of this decrease is due to the reduction in product sales volume. In
addition, the loss on adjustment for excess and obsolete inventory decreased by $634 during the three months ended June 30, 2026
compared to the same period in 2025. Furthermore, the Company recorded a loss on disposal of non-performing chargers of $3,856
during the three months ended June 30, 2025.
Cost
of charging services (electricity reimbursements) decreased by $399, or 6%, to $5,823 for the three months ended June 30, 2026 as compared
to $6,222 for the three months ended June 30, 2025. The decrease in 2026 was attributable to the decreased number and mix of charging
stations generating charging service revenues subject to electricity reimbursement.
Depreciation
and amortization expense decreased by $110 or 9%, to $1,098 for the three months ended June 30, 2026 as compared to $1,208 for the
three months ended June 30, 2025. The decrease in depreciation expense was attributable to an increase in the grant revenue that is
presented as an offset to the depreciation expense, and the decrease in the number of vehicles associated with the ride-share
services as a part of the sale of Envoy.
23
Operating
Expenses
Compensation
expense decreased by $5,415 or 39%, to $8,352 (consisting of $7,658 of cash compensation and benefits and $694 of non-cash compensation)
for the three months ended June 30, 2026. Compensation expense was $13,767 (consisting of $12,980 of cash compensation and benefits and
$787 of non-cash compensation) for the three months ended June 30, 2025. The decrease in compensation expense for the three months ended
June 30, 2026 compared to the same period in 2025 was primarily related to decreases in personnel and compensation in executive, marketing,
sales and operations departments as a result of cost savings and synergies realized.
General
and administrative expenses decreased by $8,936 or 84%, to $1,750 for the three months ended June 30, 2026 as compared to $10,686 for
the three months ended June 30, 2025. The decrease was primarily attributable to the difference in the credit loss reserve of $5,511,
decrease in professional services of $1,657 and decrease in accounting related fees of $956.
Other
operating expenses decreased by $2,603, or 39%, to $4,122 for the three months ended June 30, 2026 from $6,725 for the three months
ended June 30, 2025. The decrease was primarily attributable to the assets impairment in the amount of $1,732 recorded during the
three months ended June 30, 2025, a decrease of $301 related to research and development activities and a decrease of $281 related
to rent.
Depreciation
and amortization expense included in operating expenses increased by $283, or 20%, to $1,715 for the three months ended June 30, 2026
as compared to $1,432 for the three months ended June 30, 2025.
The
Company recorded a gain on change in fair value of consideration payable and earn-out liabilities related to the Zemetric acquisition
of $1,273 for the three months ended June 30, 2026 as compared to a loss of $1,784 for the three months ended June 30, 2025 due
to the change in the inputs to the probability-weighted discounted cash flow model.
Other Income (Expense)
We
recorded other income of $250 during the three months ended June 30, 2026 as compared to other income of $345 for the three months ended
June 30, 2025. The decrease in other income was primarily related to a decrease in dividend and interest income of $105 during the three
months ended June 30, 2026 as compared to the three months ended June 30, 2025.
Net
Loss
Our
net loss for the three months ended June 30, 2026 decreased by $23,273, or 79%, to $6,039 as compared to $29,312 for the three months
ended June 30, 2025. The decrease was primarily attributable to a decrease in operating expenses, partially offset by a decline in revenues,
and was accompanied by an improvement in gross profit.
Total
Comprehensive Loss
Our
total comprehensive loss for the three months ended June 30, 2026 was $6,923 whereas our total comprehensive loss for the three months
ended June 30, 2025 was $24,649.
24
Six
Months Ended June 30, 2026 Compared With Six Months Ended June 30, 2025
Revenues
Total
revenue for the six months ended June 30, 2026 decreased by $6,970, or 14%, to $42,453 compared to $49,423 during the six months ended
June 30, 2025.
Revenue
from product sales was $13,633 for the six months ended June 30, 2026 as compared to $22,889 during the six months ended June 30, 2025,
a decrease of $9,256, or 40%. The decrease was primarily attributable to the Company’s strategic repositioning toward higher-margin market segments
and more disciplined customer selection, including a reduction in lower-margin product sales. Product revenue was also adversely affected
by continued softness in the electric vehicle charging market, particularly lower demand for commercial Level 2 chargers and DC fast chargers,
compared to the prior-year period.
Charging
service revenue from Blink-owned charging stations was $23,714 for the six months ended June 30, 2026 as compared to $20,315 for the
six months ended June 30, 2025, an increase of $3,399, or 17%. The increase is due to the higher utilization of the chargers and deployment
of new chargers on the Blink Networks.
Cost
of Revenues
Cost
of revenues primarily consists of electricity reimbursements, revenue share payments to our Property Partner hosts, the cost of charging
stations sold, connectivity charges provided by telco and other networks, warranty, repairs and maintenance services, and depreciation
of our installed charging stations. Cost of revenues for the six months ended June 30, 2026 were $27,373 as compared to $37,522 for the
six months ended June 30, 2025, a decrease of $10,149 or 27%, and in line with the decline in the product revenues as discussed above.
There is a degree of variability in our costs in relationship to our revenues
from period to period, primarily due to:
●
electricity
reimbursements that are unique to those Property Partner host agreements which provide for such reimbursements;
●
revenue
share payments are predicated on the contractual obligation under the property partner agreement and the revenue generated by the
applicable chargers;
●
cost
of charging stations sold is predicated on the mix of types of charging stations and parts sold during the period;
●
network
costs are fixed in nature based on the number of chargers connected to the telco network regardless of whether the charger generates
revenue;
●
provisions
for excess and obsolete inventory; and
●
warranty
and repairs and maintenance expenses are based on both the number of service cases completed during the period.
Cost
of product sales decreased by $10,951, or 56%, from $19,622 for the six months ended June 30, 2025 as compared to $8,671 for the six
months ended June 30, 2026. Approximately $5,633 of this decrease is due to the reduction in product sales volume. In addition, the
adjustment for excess and obsolete inventory was $1,462 during the six months ended June 30, 2026 compared to $4,571 during the same
period in 2025. Furthermore, the Company recorded a loss on disposal of non-performing chargers of $3,856 during the six months
ended June 30, 2025.
Cost
of charging services (electricity reimbursements) increased by $1,699, or 15%, to $13,202 for the six months ended June 30, 2026 as compared
to $11,503 for the six months ended June 30, 2025. The increase in 2026 was attributable to the increased number and mix of charging
stations generating charging service revenues subject to electricity reimbursement.
Depreciation
and amortization expense decreased by $210, or 8%, to $2,293 for the six months ended June 30, 2026 as compared to $2,503 for the
six months ended June 30, 2025. The decrease in depreciation expense was attributable to an increase in the grant revenue that is
presented as an offset to the depreciation expense, and the decrease in the number of vehicles associated with the ride-share
services as a part of the sale of Envoy.
25
Operating
Expenses
Compensation
expense decreased by $8,806, or 32%, to $18,515 (consisting of $16,493 of cash compensation and benefits and $2,022 of non-cash compensation)
for the six months ended June 30, 2026. Compensation expense was $27,321 (consisting of $25,568 of cash compensation and benefits and
$1,753 of non-cash compensation) for the six months ended June 30, 2025. The decrease in compensation expense for the six months ended
June 30, 2026 compared to the same period in 2025 was primarily related to decreases in personnel and compensation in executive, marketing,
sales and operations departments as a result of cost savings and synergies realized.
General
and administrative expenses decreased by $12,597, or 70%, to $5,302 for the six months ended June 30, 2026 as compared to $17,899 for
the six months ended June 30, 2025. The decrease was primarily attributable to the difference in the credit loss reserve of $6,811, a
decrease in professional services of $2,674, a decrease in accounting related fees of $1,039, a decrease in tax compliance fees of $788
and a decrease in marketing expenditures of $749.
Other
operating expenses decreased by $4,319, or 36%, to $7,755 for the six months ended June 30, 2026 from $12,074 for the six months ended
June 30, 2025. The decrease was primarily attributable to the asset impairment in the amount of $1,732 recorded during the six months
ended June 30, 2025, a decrease of $819 related to research and development activities and a decrease of $566 related to rent.
Depreciation
and amortization expense included in operating expenses decreased by $305, or 10%, to $2,782 for the six months ended June 30, 2026 as
compared to $3,087 for the six months ended June 30, 2025.
The
Company recorded a gain on change in fair value of consideration payable and earn-out liabilities related to the Zemetric acquisition
of $1,273 for the six months ended June 30, 2026 as compared to a loss of $2,463 for the six months ended June 30, 2025 due to
the change in the inputs to the probability-weighted discounted cash flow model.
Other
Income (Expense)
We
recorded other income of $492 during the six months ended June 30, 2026 as compared to $746 for the six months ended June 30, 2025. The
decrease in other income was primarily related to a decrease of $261 in dividend and interest income.
Net
Loss
Our
net loss for the six months ended June 30, 2026 decreased by $32,718 or 65%, to $17,602 as compared to $50,320 for the six months ended
June 30, 2025. The decrease was primarily due to lower operating expenses, partially offset by the decline in revenues, and was accompanied
by an improvement in gross profit.
Total
Comprehensive Loss
Our
total comprehensive loss for the six months ended June 30, 2026 was $18,719 whereas our total comprehensive loss for the six months ended
June 30, 2025 was $42,906.
Liquidity
and Capital Resources
We
measure our liquidity in a number of ways, including the following:
June 30, 2026
December 31, 2025
(Unaudited)
Cash and Cash Equivalents
$ 34,004
$ 39,568
Working Capital
$ 10,264
$ 25,846
Notes Payable
$ 265
$ 265
During
the six months ended June 30, 2026, we financed our activities from proceeds derived from equity financings occurring in prior periods.
A significant portion of the funds raised from the sale of capital stock has been used to cover working capital needs and personnel,
office expenses and various consulting and professional fees.
For
the six months ended June 30, 2026 and 2025, we used cash of $3,382 and $28,541, respectively, in operations. Our cash use for the six
months ended June 30, 2026 was primarily attributable to our net loss of $17,602 adjusted for net non-cash expenses in the aggregate amount of $7,480, partially offset by $6,740 of net cash provided by changes in the levels of operating assets and liabilities. Our cash
use for the six months ended June 30, 2025, was primarily attributable to our net loss of $50,320, adjusted for net non-cash expenses
in the aggregate amount of $22,692, and $913 of net cash used in changes in the levels of operating assets and liabilities.
During
the six months ended June 30, 2026, net cash used in investing activities was $616, of which $852 was provided by government grants, $954 was used to purchase property and equipment, $485 of cash was disposed of in connection with the sale of Envoy, and
$29 was used for capitalized engineering costs. During the six months ended June 30, 2025, net cash provided by investing activities
was $10,106, of which $13,630 was provided by the sale of marketable securities and $223 was provided by the sale of an equity method
investment, offset by $205 of capitalized engineering costs and $3,542 of which was used to purchase charging stations and other fixed
assets.
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During
the six months ended June 30, 2026, cash used in financing activities was $63 which was used to pay down our liability in connection
with a finance lease. During the six months ended June 30, 2025, cash provided by financing activities was $874, of which $17 was used
to pay down our liability in connection with a finance lease, offset by $891 provided by offering proceeds related to the sale of common
stock.
As
of June 30, 2026, we had cash and cash equivalents, working capital and an accumulated deficit of $34,004, $10,264 and $840,028, respectively.
During the three and six months ended June 30, 2026, we had a net loss of $6,039 and $17,602, respectively, and used cash of $3,382 in
operating activities. The Company has not yet achieved profitability and expects cash flows from operations to be volatile. The Company’s
future operating needs include the planned costs to operate its business, including amounts required to fund working capital and future
liquidity needs.
The
Company has no agreements, commitments, or understandings with respect to any financing alternatives. Any equity issuance would be
dilutive to stockholders. In December 2025, we completed an underwritten registered public offering of 26,666,666 shares of our
common stock at a public offering price of $0.75 per share. We received gross proceeds of $20,000 from the public offering, less
underwriting discounts and offering expenses of $1,474, for net proceeds of $18,526. The public offering was made pursuant to our
registration statement on Form S-1 filed with the SEC on December 4, 2025, and final prospectus dated December 10, 2025. H.C.
Wainwright & Co. and Roth Capital Partners acted as co-placement agents in connection with the offering.
Contractual
Obligations and Commitments
We
have operating lease obligations over the next five years of approximately $4,204. These operating lease obligations are
primarily related to corporate office space and warehousing.
Critical
Accounting Estimates
The
preparation of financial statements and related disclosures in conformity with U.S. GAAP requires us to make estimates and judgments
that affect the reported amounts of assets, liabilities, revenue and expense, and the related disclosures. We base our estimates on historical
experience and on assumptions that we believe are reasonable under the circumstances; actual results may differ from these estimates.
Our
critical accounting estimates are described in Part II, Item 7, Critical Accounting Estimates in our Annual Report on Form 10-K for the
year ended December 31, 2025, and our significant accounting policies are described in Note 2 – Summary of Significant Accounting
Policies in our financial statements included elsewhere in this quarterly report. There have been no material changes to our critical
accounting estimates or significant accounting policies since the filing of our Annual Report on Form 10-K for the year ended December
31, 2025.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.