| REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS |
19.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
In
connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025, the
Company identified a number of misstatements in the Company’s previously issued financial statements as summarized below. The
identified misstatements impacted certain components of the balance sheet, statement of operations, statement of comprehensive loss,
statement of changes in stockholders’ equity and statement of cash flows in the consolidated financial statements included in
the Form 10-K for the year ended December 31, 2024. The Company assessed the materiality of the errors, including the presentation
on prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting
Bulletin Topics 1.M and 1.N (formerly No. 99, Materiality).
Based
on this assessment, the Company concluded that these errors and the related impacts did not result in a material misstatement of its
previously issued consolidated financial statements as of and for the year ended December 31, 2024. However, the Company concluded the
financial statements should be revised for these errors.
The
revisions consist of the following adjustments:
| |
(a) |
Reclassification of $656
of asset-related grant income from revenue to a reduction of depreciation expense to more appropriately reflect the nature of the grants
as reimbursements of depreciable asset costs. No net impact on the balance sheet; this is an income statement reclassification between revenue and depreciation expense with no effect
on net loss. |
| |
|
|
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(b) |
Adjustments to the timing
of recognition of network fee revenues of $764
and warranty revenues of $740,
totaling $1,504,
to correctly align revenue recognition with the satisfaction of the related performance obligations. A related $40
reduction in cost of product sales was also recorded. Impact
on balance sheet: Accounts payable, accrued expenses and other current liabilities increased by $1,464,
representing deferred performance obligations. Net impact on income statement: $1,464
increase to net loss. Cash flow impact: The increase in net
loss is offset by an increase in accounts payable, accrued expenses, and other current liabilities. |
| |
|
|
| |
(c) |
Write-off of $1,672
related to certain installed charging units that were determined not to be performing to specifications. Impact on balance sheet:
Inventory decreased by $1,672, with an offsetting charge to cost of product sales. Cash flow
impact: No net impact on operating cash flows. |
| |
|
|
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(d) |
Write-off of $1,730
related to older, incomplete charger deployment projects for which the Company determined the related costs no longer met the
criteria for capitalization. Additionally, $108 of incremental costs were recognized within general and administrative expenses and
$40 of incremental costs were recognized within cost of product sales. Impact on balance sheet: Property and equipment, net
decreased by $1,290
(gross cost of $1,730 less $440 accumulated depreciation), with the net book value charge of $1,290
recorded through cost of product sales. Accounts payable, accrued expenses and other current liabilities increased by $148.
Cash flow impact: No net impact on operating cash flows. |
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|
|
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(e) |
Reversal of $1,330
of a previously accrued purchase liability that the Company determined was no longer a valid obligation . Impact on balance sheet:
Accounts payable, accrued expenses and other current liabilities decreased by $1,330,
with a corresponding $1,330
benefit recorded through cost of product sales. Cash flow impact: No net impact on operating cash flows. |
| |
|
|
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(f) |
The Company recorded reclassifications of grant-related receivables and deferred grant income to more appropriately
reflect the nature and expected timing of settlement of those balances: (i) grant-related receivables of $1,129 were reclassified from accounts receivable to prepaid expenses and other current assets; (ii) deferred grant
income of $281 was reclassified from deferred revenue current to accounts payable, accrued expenses and other current liabilities; (iii)
non-current deferred grant income of $5,543 was reclassified to other liabilities as part of the overall reallocation of grant-related deferred income between
current and non-current classifications. These are balance sheet reclassifications with no impact on net loss. Cash flow impact: $1,129 of government grant proceeds was reclassified from operating activities to investing activities. No impact on
total cash flows. |
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|
|
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(g) |
The revision adjustments described in the notes above resulted in an aggregate increase to the
pre-tax loss of $3,244.
The related tax effect of these adjustments resulted in a $58
decrease in the provision for income taxes, from $714
to $656 with an offset to Accounts payable, accrued expenses and other current liabilities.
After giving effect to the tax provision adjustment, the net impact on accumulated deficit was $3,186. |
BLINK CHARGING CO.
Notes to Consolidated Financial Statements
(dollars in
thousands, except for share and per share amounts)
19.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
A
summary of the corrections to the impacted financial statement line items in the Company’s previously issued consolidated financial
statements as of and for the year ended December 31, 2024 are as follows:
SCHEDULE OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS
Consolidated
Balance Sheet
(in
thousands)
As
of December 31, 2024
| | |
As Previously Reported | | |
Revision Adjustments | | |
Notes |
|
|
As Revised | |
| Assets | |
| | | |
| | | |
|
|
|
|
| | |
| Current Assets: | |
| | | |
| | | |
|
|
|
|
| | |
| Accounts receivable, net | |
$ | 43,201 | | |
$ | (1,129 | ) | |
|
(f) |
|
|
$ | 42,072 | |
| Inventory, net | |
| 38,280 | | |
| (1,672 | ) | |
|
(c) |
|
|
| 36,608 | |
| Prepaid expenses and other current assets | |
| 4,267 | | |
| 1,129 | | |
|
(f) |
|
|
| 5,396 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Total Current Assets | |
| 141,152 | | |
| (1,672 | ) | |
|
|
|
|
| 139,480 | |
| Property and equipment, net | |
| 38,671 | | |
| (1,290 | ) | |
|
(d) |
|
|
| 37,381 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Total Assets | |
$ | 217,988 | | |
$ | (2,962 | ) | |
|
|
|
|
$ | 215,026 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Liabilities and Stockholders’ Equity | |
| | | |
| | | |
|
|
|
|
| | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Current Liabilities: | |
| | | |
| | | |
|
|
|
|
| | |
| Accounts payable, accrued expenses and other current liabilities | |
$ | 38,370 | | |
$ | 505 | | |
|
(b), (e), (f) |
|
|
$ | 38,875 | |
| Current portion of deferred revenue | |
| 17,359 | | |
| (281 | ) | |
|
(f) |
|
|
| 17,078 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Total Current Liabilities | |
| 59,244 | | |
| 224 | | |
|
|
|
|
| 59,468 | |
| Deferred revenue, non-current portion | |
| 10,603 | | |
| (5,543 | ) | |
|
(f) |
|
|
| 5,060 | |
| Other liabilities | |
| 1,152 | | |
| 5,543 | | |
|
(f) |
|
|
| 6,695 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Total Liabilities | |
| 99,286 | | |
| 224 | | |
|
|
|
|
| 99,510 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Stockholders’ Equity: | |
| | | |
| | | |
|
|
|
|
| | |
| Accumulated deficit | |
| (735,855 | ) | |
| (3,186 | ) | |
|
(a)-(g) |
|
|
| (739,041 | ) |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Total Stockholders’ Equity | |
| 118,702 | | |
| (3,186 | ) | |
|
|
|
|
| 115,516 | |
| | |
| | | |
| | | |
|
|
|
|
| | |
| Total Liabilities and Stockholders’ Equity | |
$ | 217,988 | | |
$ | (2,962 | ) | |
|
|
|
|
$ | 215,026 | |
BLINK CHARGING CO.
Notes to Consolidated Financial Statements
(dollars in
thousands, except for share and per share amounts)
19.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Consolidated
Statement of Operations-For the Year Ended December 31, 2024
(in
thousands)
| | |
As Previously Reported | | |
Revision Adjustments | |
|
Notes |
| |
As Revised | |
| Revenues: | |
| | | |
| | |
|
|
|
| |
| | |
| Network fees | |
$ | 8,716 | | |
$ | (764 | ) |
|
|
(b) |
| |
$ | 7,952 | |
| Warranty | |
| 6,427 | | |
| (740 | ) |
|
|
(b) |
| |
| 5,687 | |
| Grant and fees rebate | |
| 1,704 | | |
| (656 | ) |
|
|
(a) |
| |
| 1,048 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Total Revenues | |
| 126,197 | | |
| (2,160 | ) |
|
|
|
| |
| 124,037 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Cost of Revenues: | |
| | | |
| | |
|
|
|
| |
| | |
| Cost of product sales | |
| 54,164 | | |
| 1,632 | |
|
|
(b), (c), (d), (e) |
| |
| 55,796 | |
| Depreciation and amortization | |
| 6,299 | | |
| (656 | ) |
|
|
(a) |
| |
| 5,643 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Total Cost of Revenues | |
| 85,416 | | |
| 976 | |
|
|
|
| |
| 86,392 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Gross Profit | |
| 40,781 | | |
| (3,136 | ) |
|
|
|
| |
| 37,645 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Operating Expenses: | |
| | | |
| | |
|
|
|
| |
| | |
| General and administrative
expenses | |
| 31,779 | | |
| 108 | |
|
|
(d) |
| |
| 31,887 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Total
Operating Expenses | |
| 240,729 | | |
| 108 | |
|
|
|
| |
| 240,837 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Loss From Operations | |
| (199,948 | ) | |
| (3,244 | ) |
|
|
|
| |
| (203,192 | ) |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Other Income (Expense): | |
| | | |
| | |
|
|
|
| |
| | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Provision for income taxes | |
| (714 | ) | |
| 58 | |
|
|
(g) |
| |
| (656 | ) |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Net Loss | |
$ | (198,132 | ) | |
$ | (3,186 | ) |
|
|
|
| |
$ | (201,318 | ) |
| Net Loss Per Share: | |
| | | |
| | |
|
|
|
| |
| | |
| Basic | |
$ | (1.96 | ) | |
$ | (0.03 | ) |
|
|
|
| |
$ | (2.00 | ) |
| Diluted | |
$ | (1.96 | ) | |
$ | (0.03 | ) |
|
|
|
| |
$ | (2.00 | ) |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Weighted Average Number of Common Shares Outstanding: | |
| | | |
| | |
|
|
|
| |
| | |
| Basic | |
| 100,844,970 | | |
| 100,844,970 | |
|
|
|
| |
| 100,844,970 | |
| Diluted | |
| 100,844,970 | | |
| 100,844,970 | |
|
|
|
| |
| 100,844,970 | |
Consolidated
Statement of Comprehensive Loss- For the Year Ended December 31, 2024
(in
thousands)
| | |
As Previously Reported | | |
Revision Adjustments | | |
As Revised | |
| | |
| | |
| | |
| |
| Net Loss | |
$ | (198,132 | ) | |
$ | (3,186 | ) | |
$ | (201,318 | ) |
| Other Comprehensive Loss: | |
| | | |
| | | |
| | |
| Cumulative translation adjustments | |
| (3,309 | ) | |
| - | | |
| (3,309 | ) |
| | |
| | | |
| | | |
| | |
| Total Comprehensive Loss | |
$ | (201,441 | ) | |
$ | (3,186 | ) | |
$ | (204,627 | ) |
BLINK CHARGING CO.
Notes to Consolidated Financial Statements
(dollars in
thousands, except for share and per share amounts)
19.
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
Consolidated
Statement of Changes in Stockholder’s Equity
(in
thousands)
As
of December 31, 2024
| | |
As Previously Reported | | |
Revision Adjustments | | |
As Revised | |
| | |
| | |
| | |
| |
| Stockholders’ Equity: | |
| | | |
| | | |
| | |
| Accumulated deficit | |
| (735,855 | ) | |
| (3,186 | ) | |
| (739,041 | ) |
| | |
| | | |
| | | |
| | |
| Total Stockholders’ Equity | |
$ | 118,702 | | |
$ | (3,186 | ) | |
$ | 115,516 | |
Consolidated
Statement of Cash Flows- For the Year Ended December 31, 2024
(in
thousands)
| | |
As Previously Reported | | |
Revision Adjustments | |
|
Notes |
| |
As Revised | |
| | |
| | |
| |
|
|
|
| |
| |
| Cash Flows From Operating Activities: | |
| | | |
| | |
|
|
|
| |
| | |
| Net loss | |
$ | (198,132 | ) | |
$ | (3,186 | ) |
|
|
(a)-(g) |
| |
$ | (201,318 | ) |
| Adjustments to reconcile net loss to net cash | |
| | | |
| | |
|
|
|
| |
| | |
| used in operating activities: | |
| | | |
| | |
|
|
|
| |
| | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |
| | | |
| | |
|
|
|
| |
| | |
| Depreciation and amortization | |
| 13,407 | | |
| (656 | ) |
|
|
(a) |
| |
| 12,751 | |
| Loss on disposal of property and equipment | |
| 679 | | |
| 1,290 | |
|
|
(d) |
| |
| 1,969 | |
| Provision for slow moving and obsolete inventory | |
| 2,352 | | |
| 1,672 | |
|
|
(c) |
| |
| 4,024 | |
| Changes
in operating assets and liabilities: | |
| | | |
| | |
|
|
|
| |
| - | |
| Accounts
receivable | |
| (2,036 | ) | |
| 1,130 | |
|
|
(f) |
| |
| (906 | ) |
| Prepaid
expenses and other current assets | |
| 2,231 | | |
| (2,260 | ) |
|
|
(f) |
| |
| (29 | ) |
| Accounts payable, accrued expenses, and other current liabilities | |
| (4,930 | ) | |
| 1,162 | |
|
|
(b), (e), (f) |
| |
| (3,768 | ) |
| Other liabilities | |
| 815 | | |
| 5,543 | |
|
|
(f) |
| |
| 6,358 | |
| Deferred revenue | |
| 2,327 | | |
| (5,824 | ) |
|
|
(f) |
| |
| (3,497 | ) |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Total Adjustments | |
| 150,970 | | |
| 2,057 | |
|
|
|
| |
| 153,027 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Net Cash Used In Operating Activities | |
| (47,162 | ) | |
| (1,129 | ) |
|
|
|
| |
| (48,291 | ) |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Cash Flows From Investing Activities: | |
| | | |
| | |
|
|
|
| |
| | |
| Proceeds from government grants | |
| - | | |
| 1,129 | |
|
|
(f) |
| |
| 1,129 | |
| | |
| | | |
| | |
|
|
|
| |
| | |
| Net Cash Provided By Investing Activities | |
| 4,148 | | |
| 1,129 | |
|
|
|
| |
| 5,277 | |
BLINK CHARGING CO.
Notes to Consolidated Financial Statements
(dollars in
thousands, except for share and per share amounts)
|