0001788841 false --12-31 2023 Q2 0001788841 2023-01-01 2023-06-30 0001788841 mcom:ClassCommonStock0.00001ParValueMember 2023-01-01 2023-06-30 0001788841 mcom:RedeemableWarrantsEachWarrantExercisableForOneShareOfClassCommonStockMember 2023-01-01 2023-06-30 0001788841 mcom:ClassACommonStockMember 2023-08-14 0001788841 mcom:ClassBCommonStockMember 2023-08-14 0001788841 2023-06-30 0001788841 2022-12-31 0001788841 mcom:ConvertiblePreferredStockSeriesAMember 2023-06-30 0001788841 mcom:ConvertiblePreferredStockSeriesAMember 2022-12-31 0001788841 us-gaap:CommonClassAMember 2023-06-30 0001788841 us-gaap:CommonClassAMember 2022-12-31 0001788841 us-gaap:CommonClassBMember 2023-06-30 0001788841 us-gaap:CommonClassBMember 2022-12-31 0001788841 2023-04-01 2023-06-30 0001788841 2022-04-01 2022-06-30 0001788841 2022-01-01 2022-06-30 0001788841 mcom:ConvertiblePreferredStockSeriesBMember 2023-03-31 0001788841 mcom:ConvertiblePreferredStockSeriesAMember 2023-03-31 0001788841 mcom:ClassACommonStockMember 2023-03-31 0001788841 mcom:ClassBCommonStockMember 2023-03-31 0001788841 us-gaap:RetainedEarningsMember 2023-03-31 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-03-31 0001788841 2023-03-31 0001788841 mcom:ConvertiblePreferredStockSeriesBMember 2022-12-31 0001788841 mcom:ClassACommonStockMember 2022-12-31 0001788841 mcom:ClassBCommonStockMember 2022-12-31 0001788841 us-gaap:RetainedEarningsMember 2022-12-31 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-12-31 0001788841 mcom:ClassACommonStockMember 2022-03-31 0001788841 mcom:ClassBCommonStockMember 2022-03-31 0001788841 us-gaap:RetainedEarningsMember 2022-03-31 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-03-31 0001788841 2022-03-31 0001788841 mcom:ClassACommonStockMember 2021-12-31 0001788841 mcom:ClassBCommonStockMember 2021-12-31 0001788841 us-gaap:RetainedEarningsMember 2021-12-31 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2021-12-31 0001788841 2021-12-31 0001788841 mcom:ConvertiblePreferredStockSeriesBMember 2023-04-01 2023-06-30 0001788841 mcom:ConvertiblePreferredStockSeriesAMember 2023-04-01 2023-06-30 0001788841 mcom:ClassACommonStockMember 2023-04-01 2023-06-30 0001788841 mcom:ClassBCommonStockMember 2023-04-01 2023-06-30 0001788841 us-gaap:RetainedEarningsMember 2023-04-01 2023-06-30 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-04-01 2023-06-30 0001788841 mcom:ConvertiblePreferredStockSeriesBMember 2023-01-01 2023-06-30 0001788841 mcom:ConvertiblePreferredStockSeriesAMember 2023-01-01 2023-06-30 0001788841 mcom:ClassACommonStockMember 2023-01-01 2023-06-30 0001788841 mcom:ClassBCommonStockMember 2023-01-01 2023-06-30 0001788841 us-gaap:RetainedEarningsMember 2023-01-01 2023-06-30 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-01-01 2023-06-30 0001788841 mcom:ClassACommonStockMember 2022-04-01 2022-06-30 0001788841 mcom:ClassBCommonStockMember 2022-04-01 2022-06-30 0001788841 us-gaap:RetainedEarningsMember 2022-04-01 2022-06-30 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-04-01 2022-06-30 0001788841 mcom:ClassACommonStockMember 2022-01-01 2022-06-30 0001788841 mcom:ClassBCommonStockMember 2022-01-01 2022-06-30 0001788841 us-gaap:RetainedEarningsMember 2022-01-01 2022-06-30 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-01-01 2022-06-30 0001788841 mcom:ConvertiblePreferredStockSeriesBMember 2023-06-30 0001788841 mcom:ClassACommonStockMember 2023-06-30 0001788841 mcom:ClassBCommonStockMember 2023-06-30 0001788841 us-gaap:RetainedEarningsMember 2023-06-30 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-06-30 0001788841 mcom:ClassACommonStockMember 2022-06-30 0001788841 mcom:ClassBCommonStockMember 2022-06-30 0001788841 us-gaap:RetainedEarningsMember 2022-06-30 0001788841 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2022-06-30 0001788841 2022-06-30 0001788841 srt:BoardOfDirectorsChairmanMember 2023-03-29 2023-03-30 0001788841 mcom:MobilityRevenuesMember 2023-04-01 2023-06-30 0001788841 mcom:MobilityRevenuesMember 2022-04-01 2022-06-30 0001788841 mcom:MobilityRevenuesMember 2023-01-01 2023-06-30 0001788841 mcom:MobilityRevenuesMember 2022-01-01 2022-06-30 0001788841 mcom:PayPerRideMember 2023-04-01 2023-06-30 0001788841 mcom:PayPerRideMember 2022-04-01 2022-06-30 0001788841 mcom:PayPerRideMember 2023-01-01 2023-06-30 0001788841 mcom:PayPerRideMember 2022-01-01 2022-06-30 0001788841 mcom:MobilitySubscriptionsMember 2023-04-01 2023-06-30 0001788841 mcom:MobilitySubscriptionsMember 2022-04-01 2022-06-30 0001788841 mcom:MobilitySubscriptionsMember 2023-01-01 2023-06-30 0001788841 mcom:MobilitySubscriptionsMember 2022-01-01 2022-06-30 0001788841 mcom:PartnershipsFeesMember 2023-04-01 2023-06-30 0001788841 mcom:PartnershipsFeesMember 2022-04-01 2022-06-30 0001788841 mcom:PartnershipsFeesMember 2023-01-01 2023-06-30 0001788841 mcom:PartnershipsFeesMember 2022-01-01 2022-06-30 0001788841 mcom:MediaRevenuesMember 2023-04-01 2023-06-30 0001788841 mcom:MediaRevenuesMember 2022-04-01 2022-06-30 0001788841 mcom:MediaRevenuesMember 2023-01-01 2023-06-30 0001788841 mcom:MediaRevenuesMember 2022-01-01 2022-06-30 0001788841 mcom:CommercializationOfMediaRightsMember 2023-04-01 2023-06-30 0001788841 mcom:CommercializationOfMediaRightsMember 2022-04-01 2022-06-30 0001788841 mcom:CommercializationOfMediaRightsMember 2023-01-01 2023-06-30 0001788841 mcom:CommercializationOfMediaRightsMember 2022-01-01 2022-06-30 0001788841 mcom:AdvertisingFeesMember 2023-04-01 2023-06-30 0001788841 mcom:AdvertisingFeesMember 2022-04-01 2022-06-30 0001788841 mcom:AdvertisingFeesMember 2023-01-01 2023-06-30 0001788841 mcom:AdvertisingFeesMember 2022-01-01 2022-06-30 0001788841 mcom:LiveSubscriptionMember 2023-04-01 2023-06-30 0001788841 mcom:LiveSubscriptionMember 2022-04-01 2022-06-30 0001788841 mcom:LiveSubscriptionMember 2023-01-01 2023-06-30 0001788841 mcom:LiveSubscriptionMember 2022-01-01 2022-06-30 0001788841 mcom:OtherRevenuesMember 2023-04-01 2023-06-30 0001788841 mcom:OtherRevenuesMember 2022-04-01 2022-06-30 0001788841 mcom:OtherRevenuesMember 2023-01-01 2023-06-30 0001788841 mcom:OtherRevenuesMember 2022-01-01 2022-06-30 0001788841 mcom:MobilityMember 2022-12-31 0001788841 mcom:MobilityMember 2023-01-01 2023-03-31 0001788841 mcom:MobilityMember 2023-03-31 0001788841 mcom:MobilityMember 2023-04-01 2023-06-30 0001788841 mcom:MobilityMember 2023-06-30 0001788841 mcom:MediaMember 2022-12-31 0001788841 mcom:MediaMember 2023-01-01 2023-03-31 0001788841 mcom:MediaMember 2023-03-31 0001788841 mcom:MediaMember 2023-04-01 2023-06-30 0001788841 mcom:MediaMember 2023-06-30 0001788841 2023-01-01 2023-03-31 0001788841 mcom:SharingElectricVehiclesMember 2023-06-30 0001788841 mcom:SharingElectricVehiclesMember 2022-12-31 0001788841 mcom:SharingElectricVehiclesUnderFinanceLeaseAgreementsMember 2023-06-30 0001788841 mcom:SharingElectricVehiclesUnderFinanceLeaseAgreementsMember 2022-12-31 0001788841 us-gaap:FurnitureAndFixturesMember 2023-06-30 0001788841 us-gaap:FurnitureAndFixturesMember 2022-12-31 0001788841 mcom:FurnitureAndFixturesUnderFinanceLeaseAgreementsMember 2023-06-30 0001788841 mcom:FurnitureAndFixturesUnderFinanceLeaseAgreementsMember 2022-12-31 0001788841 mcom:ComputerSoftwareMember 2023-06-30 0001788841 mcom:ComputerSoftwareMember 2022-12-31 0001788841 us-gaap:LeaseholdImprovementsMember 2023-06-30 0001788841 us-gaap:LeaseholdImprovementsMember 2022-12-31 0001788841 us-gaap:CostOfSalesMember 2023-04-01 2023-06-30 0001788841 us-gaap:CostOfSalesMember 2022-04-01 2022-06-30 0001788841 us-gaap:CostOfSalesMember 2023-01-01 2023-06-30 0001788841 us-gaap:CostOfSalesMember 2022-01-01 2022-06-30 0001788841 mcom:WriteOffVehicleDepositsMember 2023-04-01 2023-06-30 0001788841 mcom:WriteOffVehicleDepositsMember 2022-04-01 2022-06-30 0001788841 mcom:WriteOffVehicleDepositsMember 2023-01-01 2023-06-30 0001788841 mcom:WriteOffVehicleDepositsMember 2022-01-01 2022-06-30 0001788841 us-gaap:ResearchAndDevelopmentExpenseMember 2023-04-01 2023-06-30 0001788841 us-gaap:ResearchAndDevelopmentExpenseMember 2022-04-01 2022-06-30 0001788841 us-gaap:ResearchAndDevelopmentExpenseMember 2023-01-01 2023-06-30 0001788841 us-gaap:ResearchAndDevelopmentExpenseMember 2022-01-01 2022-06-30 0001788841 us-gaap:GeneralAndAdministrativeExpenseMember 2023-04-01 2023-06-30 0001788841 us-gaap:GeneralAndAdministrativeExpenseMember 2022-04-01 2022-06-30 0001788841 us-gaap:GeneralAndAdministrativeExpenseMember 2023-01-01 2023-06-30 0001788841 us-gaap:GeneralAndAdministrativeExpenseMember 2022-01-01 2022-06-30 0001788841 us-gaap:ConvertibleDebtMember 2023-06-30 0001788841 us-gaap:ConvertibleDebtMember 2023-01-01 2023-06-30 0001788841 us-gaap:ConvertibleDebtMember 2022-12-31 0001788841 mcom:SecuredLoanNetMember 2023-06-30 0001788841 mcom:SecuredLoanNetMember 2023-01-01 2023-06-30 0001788841 mcom:SecuredLoanNetMember 2022-12-31 0001788841 mcom:UnsecuredLoansNetMember 2023-06-30 0001788841 mcom:UnsecuredLoansNetMember 2023-01-01 2023-06-30 0001788841 mcom:UnsecuredLoansNetMember 2022-12-31 0001788841 mcom:WarrantsLiabilitiesMember 2023-06-30 0001788841 mcom:WarrantsLiabilitiesMember 2022-12-31 0001788841 mcom:OtherFinancialLiabilitiesMember 2023-01-01 2023-06-30 0001788841 mcom:OtherFinancialLiabilitiesMember 2023-06-30 0001788841 mcom:OtherFinancialLiabilitiesMember 2022-12-31 0001788841 us-gaap:ConvertibleDebtMember 2023-06-30 0001788841 mcom:ClassACommonSharesMember 2023-01-01 2023-06-30 0001788841 mcom:SEPAConvertibleNoteMember 2022-12-02 0001788841 mcom:SEPAConvertibleNoteMember 2022-11-29 2022-12-02 0001788841 mcom:SEPAConvertibleNoteMember 2023-01-01 2023-03-31 0001788841 mcom:SEPAConvertibleNoteMember 2023-06-30 0001788841 mcom:SEPAConvertibleNoteMember 2023-03-08 0001788841 mcom:SEPAConvertibleNoteMember 2023-03-01 2023-03-08 0001788841 mcom:ClassACommonSharesMember 2023-03-08 0001788841 mcom:OperatingLeasesMember 2023-04-01 2023-06-30 0001788841 mcom:OperatingLeasesMember 2022-04-01 2022-06-30 0001788841 mcom:OperatingLeasesMember 2023-01-01 2023-06-30 0001788841 mcom:OperatingLeasesMember 2022-01-01 2022-06-30 0001788841 mcom:FinanceLeaseMember 2023-04-01 2023-06-30 0001788841 mcom:FinanceLeaseMember 2022-04-01 2022-06-30 0001788841 mcom:FinanceLeaseMember 2023-01-01 2023-06-30 0001788841 mcom:FinanceLeaseMember 2022-01-01 2022-06-30 0001788841 us-gaap:OtherCurrentLiabilitiesMember 2023-01-01 2023-06-30 0001788841 us-gaap:OtherCurrentLiabilitiesMember 2022-01-01 2022-12-31 0001788841 srt:MinimumMember 2023-01-01 2023-06-30 0001788841 srt:MaximumMember 2023-01-01 2023-06-30 0001788841 mcom:SEPAJanuary2023TransactionMember 2023-01-23 2023-01-24 0001788841 mcom:SEPAJanuary2023TransactionMember 2023-01-01 2023-06-30 0001788841 mcom:SEPAJanuary2023TransactionMember 2023-06-30 0001788841 mcom:SEPAMarch2023Member 2023-03-01 2023-03-08 0001788841 mcom:OptionOneMarketPriceMember 2023-03-08 0001788841 mcom:OptionTwoMarketPriceMember 2023-03-08 0001788841 2023-03-01 2023-03-08 0001788841 mcom:EquityIncentivePlanMember 2023-04-01 2023-06-30 0001788841 mcom:EquityIncentivePlanMember 2022-04-01 2022-06-30 0001788841 mcom:EquityIncentivePlanMember 2023-01-01 2023-06-30 0001788841 mcom:EquityIncentivePlanMember 2022-01-01 2022-06-30 0001788841 mcom:EquityIncentivePlanMember 2023-06-30 0001788841 mcom:EquityIncentivePlan2020Member 2023-04-01 2023-06-30 0001788841 mcom:EquityIncentivePlan2020Member 2022-04-01 2022-06-30 0001788841 mcom:EquityIncentivePlan2020Member 2023-01-01 2023-06-30 0001788841 mcom:EquityIncentivePlan2020Member 2022-01-01 2022-06-30 0001788841 mcom:PublicWarrantsMember 2023-04-01 2023-06-30 0001788841 mcom:PublicWarrantsMember 2022-04-01 2022-06-30 0001788841 mcom:PublicWarrantsMember 2023-01-01 2023-06-30 0001788841 mcom:PublicWarrantsMember 2022-01-01 2022-06-30 0001788841 us-gaap:ConvertibleDebtMember 2023-04-01 2023-06-30 0001788841 us-gaap:ConvertibleDebtMember 2022-04-01 2022-06-30 0001788841 us-gaap:ConvertibleDebtMember 2023-01-01 2023-06-30 0001788841 us-gaap:ConvertibleDebtMember 2022-01-01 2022-06-30 0001788841 mcom:ConvertibleNotesWarrantsMember 2023-04-01 2023-06-30 0001788841 mcom:ConvertibleNotesWarrantsMember 2022-04-01 2022-06-30 0001788841 mcom:ConvertibleNotesWarrantsMember 2023-01-01 2023-06-30 0001788841 mcom:ConvertibleNotesWarrantsMember 2022-01-01 2022-06-30 0001788841 mcom:GRNVSponsorPrivateWarrantsMember 2023-04-01 2023-06-30 0001788841 mcom:GRNVSponsorPrivateWarrantsMember 2022-04-01 2022-06-30 0001788841 mcom:GRNVSponsorPrivateWarrantsMember 2023-01-01 2023-06-30 0001788841 mcom:GRNVSponsorPrivateWarrantsMember 2022-01-01 2022-06-30 0001788841 mcom:ClassBCommonSharesHeldEscrowForIndemnificationPurposeMember 2023-04-01 2023-06-30 0001788841 mcom:ClassBCommonSharesHeldEscrowForIndemnificationPurposeMember 2022-04-01 2022-06-30 0001788841 mcom:ClassBCommonSharesHeldEscrowForIndemnificationPurposeMember 2023-01-01 2023-06-30 0001788841 mcom:ClassBCommonSharesHeldEscrowForIndemnificationPurposeMember 2022-01-01 2022-06-30 0001788841 mcom:CEOPerformanceAward2020Member 2023-04-01 2023-06-30 0001788841 mcom:CEOPerformanceAward2020Member 2022-04-01 2022-06-30 0001788841 mcom:CEOPerformanceAward2020Member 2023-01-01 2023-06-30 0001788841 mcom:CEOPerformanceAward2020Member 2022-01-01 2022-06-30 0001788841 mcom:OmnibusPlan2021Member 2023-04-01 2023-06-30 0001788841 mcom:OmnibusPlan2021Member 2022-04-01 2022-06-30 0001788841 mcom:OmnibusPlan2021Member 2023-01-01 2023-06-30 0001788841 mcom:OmnibusPlan2021Member 2022-01-01 2022-06-30 0001788841 mcom:CommonStocksToBeIssuedOutsideEquityIncentivePlansMember 2023-04-01 2023-06-30 0001788841 mcom:CommonStocksToBeIssuedOutsideEquityIncentivePlansMember 2022-04-01 2022-06-30 0001788841 mcom:CommonStocksToBeIssuedOutsideEquityIncentivePlansMember 2023-01-01 2023-06-30 0001788841 mcom:CommonStocksToBeIssuedOutsideEquityIncentivePlansMember 2022-01-01 2022-06-30 0001788841 mcom:WarrantsissuedToBodMembersMember 2023-04-01 2023-06-30 0001788841 mcom:WarrantsissuedToBodMembersMember 2022-04-01 2022-06-30 0001788841 mcom:WarrantsissuedToBodMembersMember 2023-01-01 2023-06-30 0001788841 mcom:WarrantsissuedToBodMembersMember 2022-01-01 2022-06-30 0001788841 mcom:MobilityMember 2023-04-01 2023-06-30 0001788841 mcom:MobilityMember 2022-04-01 2022-06-30 0001788841 mcom:MobilityMember 2023-01-01 2023-06-30 0001788841 mcom:MobilityMember 2022-01-01 2022-06-30 0001788841 mcom:MediaMember 2023-04-01 2023-06-30 0001788841 mcom:MediaMember 2022-04-01 2022-06-30 0001788841 mcom:MediaMember 2023-01-01 2023-06-30 0001788841 mcom:MediaMember 2022-01-01 2022-06-30 0001788841 mcom:AllOtherMember 2023-04-01 2023-06-30 0001788841 mcom:AllOtherMember 2022-04-01 2022-06-30 0001788841 mcom:AllOtherMember 2023-01-01 2023-06-30 0001788841 mcom:AllOtherMember 2022-01-01 2022-06-30 0001788841 country:IT 2023-04-01 2023-06-30 0001788841 country:IT 2022-04-01 2022-06-30 0001788841 country:IT 2023-01-01 2023-06-30 0001788841 country:IT 2022-01-01 2022-06-30 0001788841 country:US 2023-04-01 2023-06-30 0001788841 country:US 2022-04-01 2022-06-30 0001788841 country:US 2023-01-01 2023-06-30 0001788841 country:US 2022-01-01 2022-06-30 0001788841 country:IT 2023-06-30 0001788841 country:IT 2022-12-31 0001788841 country:US 2023-06-30 0001788841 country:US 2022-12-31 0001788841 mcom:AllOtherCountriesMember 2023-06-30 0001788841 mcom:AllOtherCountriesMember 2022-12-31 0001788841 srt:ChiefExecutiveOfficerMember 2023-01-01 2023-06-30 0001788841 mcom:TwoIndependentBoardMember mcom:WarrantsMember 2023-01-01 2023-06-30 0001788841 mcom:TwoIndependentBoardMember mcom:WarrantsMember 2023-06-30 0001788841 mcom:OneIndependentBoardMember 2023-01-01 2023-06-30 0001788841 us-gaap:SeriesBPreferredStockMember 2023-03-13 0001788841 us-gaap:SeriesBPreferredStockMember 2023-03-12 2023-03-13 0001788841 us-gaap:SeriesBPreferredStockMember 2023-03-30 0001788841 us-gaap:SeriesBPreferredStockMember 2023-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(MARK ONE)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarter ended June 30, 2023

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                      to                     

 

Commission file number: 001-39136

 

micromobility.com, Inc.
(Exact Name of Registrant as Specified in Its Charter) 

 

 

Delaware   84-3015108

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

32 Old Slip, New York, NY 10005

(Address of principal executive offices)

 

(917) 675-7157

(Issuer’s telephone number)

 

(Former name or former address, if changed since last report.)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which
registered
Class A Common Stock, $0.00001 par value   MCOM   The Nasdaq Stock Market LLC
Redeemable warrants, each warrant exercisable for one share of Class A Common Stock   MCOMW   The Nasdaq Stock Market LLC

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    No  

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes     No  

 

 

 
 
 

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer Accelerated filer
Non-accelerated filer Smaller reporting company
  Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No  

 

As of August 14, 2023, 130,726,127 shares of Class A common stock, par value $0.00001 per share, were issued and outstanding and 0 shares of Class B common stock, par value $0.00001 per share, were issued and outstanding.

 

 

 
 

 

MICROMOBILITY.COM, INC.

 

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2023

 

TABLE OF CONTENTS

 

  Page   
Part I. Financial Information 2
Item 1. Unaudited Financial Statements 2
Condensed Consolidated Balance Sheets as of June 30, 2023 (Unaudited) and December 31, 2022 2
Condensed Consolidated Statements of Operations and Comprehensive Loss for the six months ended June 30, 2023 and 2022 (unaudited) 3
Condensed Consolidated Statements Changes in Convertible Preferred Stock and Stockholders’ Deficit for the six months ended June 30, 2023 and 2022 (unaudited) 4
Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022 (unaudited) 8
Notes to Unaudited Condensed Consolidated Financial Statements 9
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 22
Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk 34
Item 4. Controls and Procedures 34
Part II. Other Information 35
Item 1. Legal Proceedings 35
Item 1A. Risk Factors 35
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 37
Item 3. Defaults Upon Senior Securities 37
Item 4. Mine Safety Disclosures 37
Item 5. Other Information 37
Item 6. Exhibits 38
Part III. Signatures 39

 

 

 

1 
 

 

PART 1 – FINANCIAL INFORMATION

 

Item 1. Interim Financial Statements.

 

Micromobility.com, Inc.

(Formerly Helbiz, Inc.)

Condensed Consolidated Balance Sheets

(in thousands, except share and per share data)

(unaudited)

 

         
   June 30,   December 31, 
   2023   2022 
ASSETS          
Current assets:          
Cash and cash equivalents  $512   $429 
Accounts receivables     597    1,345 
VAT receivables   1,781    3,054 
Prepaid and other current assets   2,423    6,417 
Total current assets   5,313    11,245 
Goodwill         13,826 
Property, equipment and deposits, net   3,555    9,237 
Intangible assets, net   322    3,267 
Right of use assets   2,134    2,872 
Other assets   633    707 
TOTAL ASSETS  $11,957   $41,154 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Accounts payable  $13,265   $14,359 
Accounts payable related to media rights   11,269    7,732 
Accrued expenses and other current liabilities   8,377    8,885 
Deferred revenues   1,692    3,047 
Operating lease liabilities   1,037    1,463 
Finance lease liabilities   436    2,002 
Short term financial liabilities, net   25,156    33,244 
Total current Liabilities   61,232    70,732 
Other non-current liabilities   358    362 
Operating lease liabilities   1,432    1,719 
Finance lease liabilities   44    71 
Non-current financial liabilities, net   6,721    7,174 
TOTAL LIABILITIES   69,787    80,058 
Commitments and contingencies   Note 11       
           
CONVERTIBLE PREFERRED STOCK          
Series A Convertible Preferred Stock, $0.0001 par value; 8,000,000 shares authorized at June 30, 2023; none issued and outstanding at June 30, 2023 and 6,751,823 issued and outstanding at December 31, 2022.  $     $945 
           
STOCKHOLDERS’ DEFICIT          
Preferred stock, $0.00001 par value; 100,000,000 shares authorized; none issued and outstanding            
Class A Common stock, $0.00001 par value; 285,774,102 shares authorized and; 49,041,609 and 3,264,576 shares issued and outstanding at June 30, 2023 and December 31, 2022, respectively.   188,038    152,996 
Class B Common stock, $0.00001 par value; 14,225,898 shares authorized and; 284,518 shares issued and outstanding at June 30, 2023 and December 31, 2022.            
Accumulated other comprehensive loss   (2,153)   (2,904)
Accumulated deficit   (243,715)   (189,942)
Total Stockholders’ deficit   (57,830)   (39,850)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $11,957    41,154 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

2 
 

 

Micromobility.com, Inc.

(Formerly Helbiz, Inc.)

Condensed Consolidated Statements of Operations and Comprehensive Loss

(in thousands, except share and per share data)

(unaudited)

 

                 
   Three Months Ended June 30,   Six Months Ended June 30, 
   2023   2022   2023   2022 
Revenue  $3,495   $4,358   $7,414   $7,670 
Operating expenses:                    
Cost of revenue   12,522    10,267    23,589    21,606 
General and administrative   5,239    6,436    11,471    13,115 
Sales and marketing   925    3,415    2,164    6,013 
Research and development   766    638    1,610    1,382 
Impairment of assets   16,444          16,444       
Total operating expenses   35,897    20,756    55,278    42,116 
                     
Loss from operations   (32,402)   (16,398)   (47,864)   (34,447)
                     
Non-operating income (expenses), net                    
Interest expense, net   (1,865)   (1,512)   (3,566)   (3,492)
Gain (loss) on extinguishment of financial debts   431    (2,065)   431    (2,065)
Change in fair value of warrant liabilities   24    441    58    1,386 
SEPA financial income (expenses), net   (495)         (2,703)      
Other income (expenses), net   122    (199)   (90)   (507)
Total non-operating income (expenses), net   (1,783)   (3,335)   (5,871)   (4,679)
                     
Income Taxes   (34)   (7)   (37)   (12)
Net loss  $(34,219)  $(19,740)  $(53,773)  $(39,137)
                     
Net loss per share attributable to common stockholders, basic and diluted  $(1.45)  $(28.41)  $(3.70)  $(60.32)
                     
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted   23,560,896    14,551,809    694,757    648,779 
                     
Net loss    (34,219)   (19,740)   (53,773)   (39,137)
                     
Other comprehensive (loss) income, net of tax:                    
Changes in foreign currency translation adjustments   998    (206)   751    (529)
                     
Net loss and comprehensive income, excluded Deemed Dividends and Deemed Dividends equivalents  $(33,218)  $(19,946)  $(53,022)  $(39,666)

 

The accompanying notes are an integral part of these condensed consolidated financial statements. 

 

3 
 

 

 

 Micromobility.com, Inc.

(Formerly Helbiz, Inc.)

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit for the three and six months ended June 30, 2023

(in thousands, except share and per share data)

(unaudited)

 

                                
    Class A Common Stock   Class B Common Stock   Accumulated   Accumulated Other Comprehensive (Loss)   TOTAL STOCKHOLDERS’ 
    Shares   Amount   Shares   Amount   Deficit   Income   DEFICIT 
Balance as of April 1, 2023 5,624,297   $173,889    284,518   $     $(209,496)  $(3,151)  $(38,758)
Issuance of common shares – for Advance Notices under SEPA  43,157,584    13,627    —                        13,627 
Issuance of common shares - for Settlement of Payroll Liabilities    42,515    104    —                        104 
Issuance of warrants - for Settlement of Account payables    —      69    —                        69 
Issuance of common shares - for Settlement of Account Payables    195,162    250    —                        250 
Share based compensation    22,051    99    —                        99 
Changes in currency translation adjustment  —            —                  998    998 
Net loss —            —            (34,219)         (32,219)
Balance as of June 30, 2023 49,041,609   $188,038    284,518   $     $(243,715)  $(2,153)  $(57,830)

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

 

4 
 

 

 

                                     
   SERIES B –PREFERRED   SERIES A – CONVERTIBLE PREFERRED   Class A Common Stock   Class B Common Stock   Accumulated   Accumulated Other Comprehensive   TOTAL STOCKHOLDERS’ 
   STOCK   STOCK   Shares   Amount   Shares   Amount   Deficit   (Loss) Income   DEFICIT 
Balance as of January 1, 2023 (Retroactive application of the reverse split ratio 1:50)  $     $945    3,264,576   $152,996    284,518   $     $(189,942)  $(2,904)   (39,850)
Issuance of common shares – for Advance Notices under SEPA               45,258,102    31,732    —                        31,732 
Issuance of common shares – for Conversion of Convertible Notes               103,689    1,296    —                        1,296 
Issuance of common stock – for Conversion of Series A Convertible Preferred Stocks         (945)   135,645    945    —                        945 
Issuance of common shares – for purchasing Intangible Assets               6,869    50    —                        50 
Issuance of common shares – for settlement of Payroll liabilities               55,515    182    —                        182 
Issuance of common shares - for Settlement of Account payables               101,000    151    —                        151 
Issuance of warrants - for Settlement of Account payables               —      69    —                        69 
Share based compensation               116,213    615    —                        615 
Issuance of Series B Preferred Stock   0          —            —                        0 
Redemption of Series B Preferred Stock   (0)         —            —                        (0)
Changes in currency translation adjustment               —            —                  751    751 
Net loss               —            —            (53,773)         (53,773)
Balance as of June 30, 2023  $     $      49,041,609    188,038    284,518   $   $(243,715)  $(2,153)  $(57,830)

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

5 
 

 

Micromobility.com, Inc.

(Formerly Helbiz, Inc.)

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders’ Deficit for the three and six months ended June 30, 2022

(in thousands, except share and per share data)

(unaudited)

 

                             
   Class A Common Stock   Class B Common Stock   Accumulated   Accumulated Other Comprehensive (Loss)   TOTAL STOCKHOLDERS’ 
   Shares   Amount   Shares   Amount   Deficit   Income   DEFICIT 
Balance as of April 1, 2022 (Retroactive application of the reverse split ratio 1:50)   374,000   $105,180    284,518   $     $(127,263)  $(944)  $(23,027)
Issuance of Warrants - in conjunction with Convertible Notes issuance   —      603    —                        603 
Issuance of common shares – Commitment shares for Convertible Notes issuance   3,000    399    —                        399 
Issuance of common shares – to legal advisors for Convertible Note issuance   4,000    296    —                        296 
Issuance of common shares – for Conversion of 2021 Convertible Notes   144,853    7,516    —                        7,516 
Issuance of common shares - for Settlement of Account Payable   1,587    117    —                        117 
Share based compensation   425    776    —                        776 
Changes in currency translation adjustment   —            —                  (206)   (206)
Net loss   —            —            (19,740)       (19,740)
Balance as of June 30, 2022   527,865   $114,888    284,518   $     $(147,004)  $(1,150)  $(33,266)

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

6 
 

 

 

                             
   Class A Common Stock   Class B Common Stock   Accumulated   Accumulated Other Comprehensive (Loss)   TOTAL STOCKHOLDERS’ 
   Shares   Amount   Shares   Amount   Deficit   Income   DEFICIT 
Balance as of January 1, 2022 (Retroactive application of the reverse split ratio 1:50)   325,784   $101,454    284,518   $     $(108,682)  $(621)  $(7,849)
ASU No. 2020-06 - modified retrospective method   —      (4,187)   —            816          (3,371)
Issuance of common shares – for Conversion of 2021 Convertible Notes   192,993    14,326    —                        14,326 
Issuance of Warrants - in conjunction with Convertible Notes issuance   —      603    —                        603 
Issuance of common shares – Commitment shares for Convertible Notes issuance   3,000    399    —                        399 
Issuance of common shares – to legal advisors for Convertible Note issuance   4,000    296    —                        296 
Issuance of common shares - for Settlement of Account Payable   543    48    —                        48 
Share based compensation   1,545    1,948    —                        1,948 
Changes in currency translation adjustment   —            —                  (529)   (529)
Net Loss   —            —            (39,137)         (39,137)
Balance as of June 30, 2022   527,865   $114,888    284,518   $     $(147,004)  $(1,150)  $(33,266)

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

7 
 

Micromobility.com, Inc.

(Formerly Helbiz, Inc.)

Condensed Consolidated Statements of Cash Flows

(in thousands, except share and per share data)

(unaudited)

 

         
   Six months ended June 30, 
   2023   2022 
Operating activities          
Net loss  $(53,773)  $(39,137)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:          
Impairment losses   16,444       
Depreciation and amortization   3,561    2,661 
Loss on disposal of assets   3,054    116 
Non-cash interest expenses and amortization of debt discount   1,186    2,971 
Amortization of Right-of-use assets   889      
Share-based compensation   615    2,252 
(Gain) or Loss on extinguishment of debts   (431)   2,065 
Change in fair value of warrant liabilities   (59)   (1,386)
Changes in operating assets and liabilities:            
Accounts receivables   748    (1,337)
Prepaid and other assets   4,737    2,617 
Security deposits   49    (5)
Accounts payables   2,744    3,631 
Accrued expenses and other current liabilities   (1,598)   2,263 
Other non-current liabilities   (4)   83 
Net cash used in operating activities   (21,836)   (23,206)
           
Investing activities          
Purchase of property, equipment, and vehicle deposits   (279)   (3,586)
Purchase of intangible assets   (235)   (117)
Deposit for Letter of Intent         (1,000)
Net cash used in investing activities   (514)   (4,703)
           
Financing activities          
Proceeds from issuance of financial liabilities, net   4,642    10,248 
Repayment of financial liabilities   (14,368)   (1,495)
Proceeds from issuance of financial liabilities, due to related party - Officer        380 
Proceeds from sale of Class A common shares, net   31,732       
Net cash provided by financing activities   22,006    9,133 
           
           
Increase (decrease) in cash and cash equivalents, and restricted cash   (344)   (18,776)
Effect of exchange rate changes   809    306 
Net increase (decrease) in cash and cash equivalents, and restricted cash   464    (18,470)
Cash and cash equivalents, and restricted cash, beginning of year   736    21,253 
Cash and cash equivalents, and restricted cash, end of year  $1,200   $2,783 
           
RECONCILIATION OF CASH, CASH EQUIVALENT AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEET          
Cash and cash equivalents   512    2,480 
Restricted cash, included in Current assets   688    193 
Restricted cash, included in Other assets, non-current        110 
Supplemental disclosure of cash flow information          
Cash paid for:          
Interest  $2,334   $517 
Income taxes, net of refunds  $37   $12 
Non-cash investing & financing activities          
Issuance of common shares – for Conversion of Convertible Notes   1,296    14,326 
Issuance of common shares – for conversion of Series A Preferred Shares   945       
Issuance of common shares - for Settlement of Payroll Liabilities   182       
Issuance of common shares - for Settlement of Account payables   151       
Issuance of warrants - for Settlement of Account payables     69       
Issuance of common shares – for purchasing Intangible Assets   50       
Derecognition of Beneficial conversion features (BCF) - Adoption of ASU 2020-06         3,371 
Purchase of vehicles with financing agreement         3,328 
Issuance of common shares – Commitment shares and share based compensation for Convertible Notes issuance         695 
Issuance of Warrants - in conjunction with Convertible Notes issuance         603 
Prepaid expenses related to D&O insurance, included in Account payable         402 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

8 
 

  

Micromobility.com, Inc.

(Formerly Helbiz, Inc.)

Notes to Condensed Consolidated Financial Statements

(in thousands, except share and per share data)

(Unaudited)

1. Description of Business and Basis of Presentation

Description of Business

micromobility.com, Inc. (formerly known as Helbiz, Inc., and, together with its subsidiaries, “micromobility.com” or the “Company”) was incorporated in the state of Delaware in October 2015 with its headquarters in New York, New York. The Company is an intra-urban transportation company that seeks to help urban areas reduce their dependency on individually owned cars by offering affordable, accessible, and sustainable forms of personal transportation, specifically addressing first and last mile transport.

Founded on proprietary technology platforms, the Company’s core business is the offering of electric vehicles in the sharing environment. Through its Mobility App, the Company offers an intra-urban transportation solution that allows users to instantly rent electric vehicles. Additionally, the Company is operating two other business lines: (i) the acquisition and broadcasting of media content including live sport event, and (ii) food delivery services.

The Company currently has a strategic footprint with offices in New York, Los Angeles, Milan, and Belgrade, with additional operational teams around the world. The Company currently has electric vehicles operating in the United States and Europe.

Recent events

A reverse stock split of 1:50 was approved by Company’s shareholders and Board of Directors. The Company’s financial statements were adjusted to reflect the reverse stock split.

The Company’s Board of Directors also approved a change in name from “Helbiz, Inc.” to “micromobility.com, Inc.” (the “Company Name Change”).

On June 15, 2023 and June 28, 2023, the Company received communications from the main live content provider, LNPB (Lega Nazionale Professionisti Serie B), notifying the early termination of the agreements related to the commercialization   and broadcast of the Italian Serie B content.

9 
 

Basis of Presentation

These accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

The Company uses the U.S. dollar as the functional currency. For foreign subsidiaries where the U.S. dollar is the functional currency, gains, and losses from remeasurement of foreign currency balances into U.S. dollars are included in the condensed consolidated statements of operations. For the foreign subsidiary where the local currency is the functional currency, translation adjustments of foreign currency financial statements into U.S. dollars are recorded to a separate component of accumulated other comprehensive loss.

The condensed consolidated balance sheet as of December 31, 2022, included herein was derived from the audited financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of, and for the year ended, December 31, 2022, included in our Annual Report on Form 10-K.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position, results of operations, comprehensive loss, stockholders’ equity, and cash flows, but are not necessarily indicative of the results of operations to be anticipated for any future annual or interim period.

2. Going Concern and Management’s Plans

The Company has experienced recurring operating losses and negative cash flows from operating activities since its inception. To date, these operating losses have been funded primarily from outside sources of invested capital. The Company had, and expects to continue to have, an ongoing need to raise additional cash from outside sources to fund its expansion plan and related operations. Successful transition to attaining profitable operations depends upon achieving a level of revenues adequate to support the Company’s cost structure. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

The Company plans to continue to fund its operations and expansion plan through debt and equity financing. Debt or equity financing may not be available on a timely basis on terms acceptable to the Company, or at all. 

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business and, as such, the financial statements do not include any adjustments relating to the recoverability and classification of recorded amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence.

3. Summary of Significant Accounting Policies and Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP generally requires management to make estimates and assumptions that affect the reported amount of certain assets, liabilities, revenues, and expenses, and the related disclosure of contingent assets and liabilities. Specific accounts that require management estimates include determination of fair values of warrant and financial instruments, purchase price allocation for business combinations, useful lives of intangible assets, property and equipment and valuation allowance for deferred income taxes.

Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

 

10 
 

Recent Accounting Pronouncements Adopted

In June 2016, the FASB issued ASU 2016-13—Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires an entity to use a current expected credit loss methodology to measure impairments of certain financial assets and to recognize an allowance for its estimate of lifetime expected credit losses. The main objective of this update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Effective January 1, 2023, we adopted ASU 2016-13 on a prospective basis. The impact of adoption of this standard on our condensed consolidated financial statements was not material.

 

4. Revenue Recognition

The table below shows the revenues breakdown for the three and six months ended on June 30, 2023 and on June 30, 2022.

 

                    
   Three Months Ended June 30,    Six Months Ended June 30, 
   2023   2022   2023   2022 
Mobility Revenues (ASC 842)  $1,694   $2,716   $3,272   $4,293 
Pay per ride   1,385    2,187    2,577    3,392 
Mobility Subscriptions   249    360    584    648 
    Partnerships fees   59    169    110   $253 
    Media Revenues (ASC 606)  $1,521   $1,489   $3,608   $3,145 
  Commercialization of Media rights (B2B)   815    1,052    2,122    2,348 
      Advertising fees   102    156    197    206 
      Live subscriptions (B2C)   604    281    1,289    591 
Other Revenues (ASC 606)  $280   $153   $534   $232 
Total Revenues  $3,495   $4,358   $7,414   $7,670 

 

The table below shows the Deferred revenues roll-forward from January 1, 2023 to June 30, 2023.

 

Deferred Income  January 1, 2023   FX Rate adj   Additions   Q1 2023 Revenue   March 31, 2023   FX Rate adj   Additions   Q2 2023 Revenue   June 30, 2023 
                                     
Mobility  $1,775    2    407    (423)   1,761    1    558    (628)   1,692 
Media   1,272    19    1,832    (2,086)   1,037    (4)   488    (1,521)      
Total  $3,047   $21   $2,239   $(2,509)  $2,798   $(3)  $1,046   $(2,149)  $1,692 

 

Deferred revenues related to prepaid customer wallets will be recorded as Mobility Revenues when riders take a ride.

As of June 30, 2023, Media Deferred Income was zero as a result of the early termination of the agreements entered into with LNPB for the commercialization of media rights.

11 
 

5. Prepaid and other current assets

Prepaid and other current assets consist of the following:

        
   June 30,   December 31, 
   2023   2022 
Restricted cash  $688   $276 
Prepaid media rights     48    2,366 
Prepaid insurances     372    1,809 
Security deposits for leasing vehicles         883 
Prepaid expenses     1,315    1,083 
Total prepaid and other current assets  $2,423   $6,417 

6. Property, equipment and vehicle deposits, net

Property and equipment consist of the following:

               
    June 30,     December 31,  
    2023     2022  
Sharing electric vehicles   $ 15,075     $ 15,128  
Of which under finance lease agreements     2,501       3,260  
Furniture, fixtures, and equipment     1,629       1,411  
Of which under finance lease agreements     177       177  
Computers and software     1,050       1,045  
Leasehold improvements     798       714  
Total property and equipment, gross     18,552       18,298  
Less: accumulated depreciation     (14,998 )     (12,136 )
Total property and equipment, net   $ 3,555     $ 6,162  
Vehicle deposits              3,075  
Total property, equipment and deposits, net   $ 3,555     $ 9,237  

 

12 
 

The following table summarizes the loss on disposal and depreciation expenses recorded in the condensed consolidated statement of operations for the three and six months ended on June 30, 2023, and 2022.

         
   Three Months Ended June 30,    Six Months Ended June 30, 
   2023   2022   2023   2022 
Cost of revenues  $4,338   $1,008   $5,688   $1,947 
      Of which write-off of vehicle deposits   3,021          3,021       
Research & Development   15          29   $15 
General & administrative   106   $109    214   $222 
Total depreciation and loss on disposal expenses  $4,458   $1,117   $5,931   $2,184 

 

 

 7. Impairment of assets

 During the three months ended June 30, 2023, the Company identified impairment indicators which indicate that the fair values of Mobility assets were below their carrying values. The decline in the Company’s market capitalization was the main impairment indicator. The Company completed a quantitative impairment test for the Mobility reporting unit, comparing the estimated fair value of the reporting unit to its carrying value, including goodwill and intangible assets. As a result, the Company impaired the net carrying value of Goodwill of $13,826 and Intangible assets of $2,619, which are included within Impairment of assets in the condensed consolidated statements of operations.

As part of the Company’s impairment analysis, the fair value of the reporting unit was determined using the income approach. The determination of the fair value of the Company’s reporting units requires management to make a number of estimates and assumptions, which include, but are not limited to: the projected future business and financial performance of the Company’s reporting unit; forecasts of revenue, operating income, depreciation, amortization, and capital expenditures; discount rates; terminal growth rates; and consideration of the impact of the current adverse macroeconomic environment. In detail, for the June 30, 2023 impairment testing, as compared to December 31, 2022 testing, the Company reduced the estimated future cash flows used in the impairment assessment, including revenues, margin, and capital expenditures to reflect the Company’s best estimates at this time. The updates to the estimated future cash flows each had a significant impact to the estimated fair value of the reporting unit. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates.

The table below shows the Impairment of assets composition for the three and six months ended June 30, 2023.

        
  

Three months ended

June 30,

  

Six months

ended

June 30,

 
   2023   2023 
Goodwill  $13,826   $13,826 
Intangible assets, net   2,618    2,618 
Total Impairment of assets  $16,444   $16,444 

8. Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consist of the following:

         
   June 30,   December 31, 
   2023   2022 
Legal contingencies – refer to Note 11 Commitments and Contingencies  $2,591   $2,710 
Payroll liabilities   3,248    2,693 
Accrued expenses   2,115    2,369 
Sales tax payables   440    1,113 
Total accrued expenses and other current liabilities  $8,394   $8,885 

 

Payroll liabilities and Accrued expenses presented in the table above are related to the normal course of business, while Sales tax payables and Legal contingencies are mainly related to liabilities arising from prior periods by Wheels Labs, Inc. (“Wheels”), an entity that we acquired in November 2022.

13 
 

9. Current and Non-current financial liabilities, net

The Company's Financial liabilities consisted of the following:

                
   Weighted Average Interest Rate   Maturity Date   June 30, 2023   December 31, 2022 
Convertible debts, net   9%   2023    5,649    14,372 
Secured loan, net   13%   2023    14,544    14,224 
Unsecured loans, net   8%   Various    10,586    10,935 
Warrants liabilities   N/A    —      26    84 
Other financial liabilities   N/A    Various    1,071    802 
Total Financial Liabilities, net             31,877    40,418 
Of which classified as Current Financial Liabilities, net             25,156    33,244 
Of which classified as Non-Current Financial Liabilities, net             6,721    7,174 

The table below shows the amounts recorded as Interest expense, net on the statements of operations for the three and six months ended on June 30, 2023 and June 30, 2022:

                               
       
    Three Months Ended June 30,    Six Months Ended June 30,
    2023   2022   2023   2022
Convertible debts   $ 1,044     $ 811     $ 1,976     $ 2,194  
Secured loan     599       516       1,139       973  
Unsecured loans     217       185       441       325  
Other interest (income) expenses     6                11           
Total Interest expenses, net   $ 1,865     $ 1,512     $ 3,566     $ 3,492  

 

As of June 30, 2023, the Company categorized as convertible debts the following instruments issued to YA II, Ltd. (the “Note Holder”): a) one convertible note issued in 2022 (“2022 Convertible debts”) under a Securities Purchase Agreement and b) a convertible promissory note issued on March 8, 2023 under a Standby Equity Purchase Agreement (“January 2023 SEPA”) dated January 24, 2023 (“2023 SEPA Convertible note”).

14 
 

2022 Convertible debts

As a result of the below conversion and repayments, on June 30, 2023, the Company had $1,202 as outstanding principal and accumulated interests.

Repayments

During the six months ended June 30, 2023, the Company partially repaid in cash the 2022 Convertible Notes for a cumulative payment of $9,228 (of which $8,047 was principal, $294 was accumulated interest, and $887 was redemption premium interest).

Conversion into Class A Common Shares

During the six months ended June 30, 2023, the Company issued 103,689 Class A Common Shares in satisfaction of conversion requests of $1,296 in principal and interest.

2022 SEPA Convertible Note  

On December 1, 2022, the Company issued a Convertible Promissory Note (“2022 SEPA Convertible Note”) to the Note Holder pursuant to the SEPA dated October 31, 2022. The 2022 SEPA Convertible Note had a principal amount of $5,000 with 10% issuance discount, as maturity date of January 31, 2023, a 0% annual interest rate and a 15% annual default interest rate. During the three months ended March 31, 2023, the Company completed the repayment initiated in 2022 by cash payments amounted to $4,210.

As a result of the mentioned re-payments on June 30, 2023, the Company has no outstanding principal or accumulated interest under the 2022 SEPA Convertible Note.

2023 SEPA Convertible Note

On March 8, 2023, the Company issued a Convertible Promissory Note (“2023 SEPA Convertible Note”) to the Note Holder pursuant to the SEPA dated January 24, 2023. The 2023 SEPA Convertible Note had a principal amount of $4,500 with 10% issuance discount, a maturity date of September 15, 2023, a 5% annual interest rate and a 15% annual default interest rate. The 2023 SEPA Convertible Note shall be convertible into shares of the Company’s Class A common shares at a Fixed Conversion Price of $25.

 The Company has the option to repay the 2023 SEPA Convertible Note through the following or a combination of the two:

 

  - repay in cash the 2023 SEPA Convertible Note on or before the Maturity date,

 

  - repay the 2023 SEPA Convertible Note by submitting one or a series of Advance Notices under the SEPA entered in January 2023, on or before the Maturity date. If any time during while the 2023 SEPA Convertible Note is outstanding, the Company delivers an Advance Notice under the January 2023 SEPA, at least one half of the proceeds of any such Advance Notice shall be used as an Advance Repayment or for the repayment of other amounts due from the Company to the Holder, unless waived by the Note Holder.

The Company has also the option to redeem the 2023 SEPA Convertible Note (“redemption option”), provided that the trading price of the Company’s Class A Common Shares is less than the fixed Conversion Price of $25

15 
 

10. Leases

 

Operating leases

During the six months ended June 30, 2023, the Company entered into a 5-years lease agreement for a store located at 500 Broome Street, New York, NY; the cumulative lease commitment for the 5-year term is $865. At inception, the Company recorded $674 as ROU assets and the operating lease liability, using an Internal Borrowing rate of 14%. 

The table below presents the impact on the condensed consolidated statement of operations related to the operating leases for the three and six months ended June 30, 2023, including expenses related to lease agreements with an initial term of 12 months or less. Amounts presented for the three and six months ended June 30, 2022, have been recorded under ASC 840.

                     
   Three Months Ended June 30,   Six Months Ended June 30, 
   2023   2022   2023   2022 
Cost of revenues  $ 395   $471   $781   $879 
General and administrative  $ 261   $275   $556   $605 
Total Operating lease expenses  $ 656   $746   $1,337   $1,484 

Finance leases

The table below presents the impact on the condensed consolidated statement of operations related to the finance leases for the three and six months ended June 30, 2023 and 2022.

                    
        
   Three Months Ended June 30,   Six Months Ended June 30, 
   2023   2022   2023   2022 
Cost of revenues  $429   $419   $976   $552 
Research & Development  $15   $15   $29   $15 
Total Operating expenses related to finance leases  $444   $434   $1,005   $567 
                     
Interest expenses   3    3    8    3 
Gain (loss) on extinguishment of financial debts   431          431       
Total Non - Operating expenses related to finance leases   434    3    439    3 

16 
 

11. Commitments and Contingencies

Litigation

The Company is from time to time involved in legal proceedings, claims, and regulatory matters, indirect tax examinations or government inquiries and investigations that may arise in the ordinary course of business. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages.

The Company records a liability when the Company believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the consolidated financial statements. The Company reviews the developments in contingencies that could affect the amount of the provisions that have been previously recorded. The Company adjusts provisions and changes to disclosures accordingly to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Significant judgment is required to determine both the probability and the estimated amount of any potential losses and many of the legal proceedings are early in the discovery stage and unresolved.

 As of June 30, 2023 and December 31, 2022, the Company concluded that certain losses on litigations were probable and reasonable estimable; as a result, the Company recorded $2,591 and $2,710, respectively, as Accruals for legal contingencies, included in Other Current liabilities.

 

Wheels has been named in various lawsuits related to the use of Wheels’s vehicles in US cities and in certain matters involving California Labor Code violations and the classification of individuals as independent contractors rather than employees. The range of loss for the Wheels legal contingencies accrued is between $585 to $3,784 which represents the range between the amount already settled with the counterparts and the amount claimed deducting insurance coverage.

The Company is also involved in certain claims where the losses are not considered to be reasonably estimable or possible; for these claims the range of potential loss is between 0 to $200.

17 
 

12. Standby Equity Purchase Agreements

During the six months ended June 30, 2023, the Company entered into two Standby Equity Purchase Agreements (“2023 SEPAs”) with an investor. The 2023 SEPAs terms and conditions represent: i) at inception - a purchased put option on the Company’s Class A common shares and, ii) upon delivery of an Advance Notice - a forward contract on the Company’s Class A common shares. Neither the purchased put option nor the forward contract qualify for equity classification.

As a result of the above classification of the 2023 SEPAs, at inception the Company expensed as SEPA’s transactions costs the legal and commitment fees that exceeded the fair value of the purchased put options. The settlement of forward contracts initiated by the Company were recorded as other SEPA financial income (expense), net.

The table below presents the impact on the condensed consolidated statement of operations related to the 2023 SEPAs for the three and six months ended June 30, 2023 and 2022.

                               
    Three Months Ended June 30,    Six Months Ended June 30,
    2023   2022   2023   2022
SEPAs transaction costs   $        $        $ (1,611   $     
Other SEPA financial income (expenses), net   $ (495   $        $ (1,092   $     
Total SEPA financial income (expenses), net   $ (495 )   $        $ (2,703 )   $     

January 2023 SEPA  

On January 24, 2023, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) with YA II PN, Ltd. Pursuant to the SEPA, the Company has the right, but not the obligation, to sell to Yorkville up to $20,000 of its shares of Class A Common Stock at any time during the 24 months. To request a purchase, the Company would submit an Advance Notice to YA II PN, Ltd. specifying the number of shares it intends to sell.

   

At inception the Company recorded as SEPA transaction costs $592 for Commitment fees and legal fees.

During the six months ended June 30, 2023, the Company delivered multiple Advance Notices for the sale of 35,661,584 Class A Common Shares, resulting in cumulative gross proceeds of $19,628.  As   a result, on June 30, 2023 only $372 remained available under the January 2023 SEPA.

March 2023 SEPA

 

On March 8, 2023, the Company entered into a Standby Equity Purchase Agreement (“SEPA”) with YA II PN, Ltd. Pursuant to the SEPA, the Company has the right, but not the obligation, to sell to Yorkville up to $50,000 of its shares of Class A Common Stock at any time during the 24 months. To request a purchase, the Company would submit an Advance Notice to YA II PN, Ltd. specifying the number of shares it intends to sell. The Advance Notice would state that the shares would be purchased at either:

 

  (i) 95.0% of the Option 1 Market Price, which is the lowest VWAP (the daily volume weighted average price of Company’s Class A common stock for the applicable date) in each of the three consecutive trading days commencing on the trading day following the Company’s submission of an Advance Notice, or

 

  (ii) 92.0% of the Option 2 Market Price, which is the VWAP of the pricing period set out in the Advance Notice and consented to by YA II PN, Ltd.

 

At inception the Company did not identify any day one impact for the SEPA agreement except for $750 as Commitment fees to be paid to YA II PN, Ltd and legal fees amounted to $269. The mentioned legal and Commitment fees have been recorded as SEPA transaction costs.

During the six months ended June 30, 2023, the Company delivered multiple Advance Notices for the sale of 8,400,000 Class A Common Shares, resulting in cumulative gross proceeds of $906.

 

18 
 

13. Share based compensation expenses

Stock-based compensation expense is allocated based on (i) the cost center to which the award holder belongs, for employees, and (ii) the service rendered to the Company, for third-party consultants. The following table summarizes total stock-based compensation expense by account for the three and six months ended June 30, 2023 and 2022.

                    
  

Three Months Ended June 30, 

 

Six Months Ended June 30, 

 
   2023   2022   2023   2022 
Cost of revenue   1    2    3    12 
Research and development   (7)   34    25    98 
Sales and marketing   (1)   161    25    343 
SEPA financial expenses               186       
General and administrative   139    804    410    1,799 
Total Share based compensation expenses, net   133    1,001    649    2,252 
Of which related to shares not issued for services rendered during the period, accrued as Account payables   34    224    34    304 

2023 Omnibus Incentive Plan

The Company adopted the 2023 Omnibus Incentive Plan (the “2023 Plan”) under which the Company may issue equity incentives to selected employees, officers, and director of the Company. The 2023 Plan permits the grant of Incentive Stock Options, Non-statutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units and Performance Shares.

Under the 2023 Plan, stock options are to be granted at a price that is not less than 100% of the fair value of the underlying common stock at the date of grant. Awards for employee vest 25% on the first anniversary of the date of grant and ratably each month over the ensuing 36-month period. Awards for independent board member vest ratably each quarter over the ensuing 4-quarter period. The maximum term for stock options granted under the 2023 Plan might not exceed ten years from the date of grant.

Upon original approval, the Company reserved 1,200,000 shares of the Company’s Class A common stock for issuance under the 2023 Plan, no equity incentives have been issued as of June 30, 2023, under the 2023 Plan.

 14. Net Loss Per Share - Dilutive outstanding shares 

The following potentially dilutive outstanding shares (considering a retroactive application of the conversion ratio) were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period.

                
  

Three months ended

June 30,

  

Six months ended

June 30,

 
   2023   2022   2023   2022 
2020 Equity Incentive Plan   145,311    147,097    145,311    147,097 
Public Warrants   168,728    154,728    168,728    154,728 
Convertible Notes *   276,228    864,397    276,228    864,397 
Convertible Notes Warrants   40,000    30,000    40,000    30,000 
GRNV Sponsor Private Warrants   28,000    42,000    28,000    42,000 
Class B Common Shares - Held in escrow for indemnification purpose         32,000          32,000 
2020 CEO Performance Award   12,000    12,000    12,000    12,000 
2021 Omnibus Plan   4,125    7,375    4,125    7,375 
Common Stocks to be issued outside equity incentive Plans   299,013    3,112    299,013    3,112 
Warrants issued to Bod members   159,324          159,324       
Total number of Common Shares not included in the EPS Basic and diluted   1,132,729    1,292,709    1,132,729    1,292,709 

 

* The number of Common Shares presented is based on the principal plus accumulated interests outstanding as of 6.30.2023 divided by the related Floor Prices.

19 
 

15. Segment and geographic information

The following table provides information about our segments and a reconciliation of the total segment Revenue and Cost of revenue to loss from operations.

                
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2023   2022   2023   2022 
Revenue                
Mobility   1,694    2,716    3,272    4,293 
Media   1,521    1,489    3,608    3,145 
All Other   280    153    534    232 
Total Revenue  $3,495   $4,358   $7,414   $7,670 
                     
Cost of revenue                    
    Mobility   (7,220)   (5,019)   (11,817)   (9,657)
Media   (4,296)   (4,675)   (9,906)   (10,950)
All Other   (1,006)   (574)   (1,855)   (999)
Total Cost of revenue  $(12,522)  $(10,267)  $(23,579)  $(21,606)
                     
Reconciling Items:                    
Impairment of Assets   (16,444)         (16,444)      
General and administrative   (5,239)   (6,436)   (11,471)   (13,115)
Sales and marketing   (925)   (3,415)   (2,164)   (6,013)
Research and development   (766)   (638)   (1,610)   (1,382)
Loss from operations  $(32,402)  $(16,398)  $(47,864)  $(34,447)

 Revenue by geography is based on where a trip was completed, or media content occurred. The following table set forth revenue by geographic area for the three and six months ended June 30, 2023 and 2022.

 

                
  

Three Months Ended

June 30,

  

Six Months Ended

June 30,

 
   2023   2022   2023   2022 
Revenue                
Italy   2,749    3,709