UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission File No. 001-38392
BLINK CHARGING CO.
(Exact name of registrant as specified in its charter)
| Nevada | 03-0608147 | |
| (State
or other jurisdiction of incorporation or organization) |
(I.R.S.
Employer Identification No.) |
| 407 Lincoln Road, Suite 704 | ||
| Miami Beach, Florida | 33139-3024 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (305) 521-0200
Not Applicable
(Former name, former address and former fiscal year, 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 | ||
| Common Stock | BLNK | The NASDAQ Stock Market LLC | ||
| Common Stock Purchase Warrants | BLNKW | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 [X] 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 [X] 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 the 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 | [X] | Smaller reporting company | [X] |
| 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 Act). Yes [ ] No [X]
As of August 12, 2019, the registrant had 26,241,434 shares of common stock outstanding.
BLINK CHARGING CO. AND SUBSIDIARIES
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2019
TABLE OF CONTENTS
| i |
PART 1 – FINANCIAL INFORMATION
| ITEM 1. | FINANCIAL STATEMENTS. |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
| June 30, 2019 | December 31, 2018 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Current Assets: | ||||||||
| Cash | $ | 10,123,186 | $ | 15,538,849 | ||||
| Marketable securities | 3,032,386 | 2,878,664 | ||||||
| Accounts receivable and other receivables, net | 252,648 | 168,169 | ||||||
| Inventory, net | 1,649,557 | 1,235,334 | ||||||
| Prepaid expenses and other current asset | 675,745 | 839,520 | ||||||
| Total Current Assets | 15,733,522 | 20,660,536 | ||||||
| Property and equipment, net | 562,649 | 383,567 | ||||||
| Operating lease right-of-use asset | 413,004 | 439,308 | ||||||
| Intangible assets, net | 90,553 | 95,852 | ||||||
| Other assets | 67,077 | 71,198 | ||||||
| Total Assets | $ | 16,866,805 | $ | 21,650,461 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current Liabilities: | ||||||||
| Accounts payable | $ | 2,232,517 | $ | 2,582,196 | ||||
| Accrued expenses | 963,186 | 1,544,921 | ||||||
| Accrued issuable equity | 293,514 | 318,493 | ||||||
| Notes payable | 10,000 | 287,966 | ||||||
| Current portion of operating lease liabilities | 214,248 | 151,997 | ||||||
| Current portion of deferred revenue | 259,295 | 357,048 | ||||||
| Total Current Liabilities | 3,972,760 | 5,242,621 | ||||||
| Operating lease liabilities, non-current portion | 239,858 | 299,733 | ||||||
| Deferred revenue, non-current portion | 5,387 | 13,878 | ||||||
| Total Liabilities | 4,218,005 | 5,556,232 | ||||||
| Series B Convertible Preferred Stock, 10,000 shares designated, 0 issued and outstanding as of June 30, 2019 and December 31, 2018 | - | - | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Stockholders’ Equity: | ||||||||
| Preferred stock, $0.001 par value, 40,000,000 shares authorized; | ||||||||
| Series A Convertible Preferred Stock, 20,000,000 shares designated, 0 shares issued and outstanding as of June 30, 2019 and December 31, 2018 | - | - | ||||||
| Series C Convertible Preferred Stock, 250,000 shares designated, 0 issued and outstanding as of June 30, 2019 and December 31, 2018 | - | - | ||||||
| Series D Convertible Preferred Stock, 13,000 shares designated, 5,125 and 5,141 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 5 | 5 | ||||||
| Common stock, $0.001 par value, 500,000,000 shares authorized, 26,236,804 and 26,118,075 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 26,237 | 26,118 | ||||||
| Additional paid-in capital | 176,468,879 | 175,924,587 | ||||||
| Accumulated other comprehensive income | 141,007 | - | ||||||
| Accumulated deficit | (163,987,328 | ) | (159,856,481 | ) | ||||
| Total Stockholders’ Equity | 12,648,800 | 16,094,229 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 16,866,805 | $ | 21,650,461 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 1 |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenues: | ||||||||||||||||
| Charging service revenue - company-owned charging stations | $ | 294,985 | $ | 301,350 | $ | 619,880 | $ | 607,097 | ||||||||
| Product sales | 282,014 | 142,839 | 385,218 | 278,599 | ||||||||||||
| Network fees | 76,359 | 56,034 | 150,829 | 113,285 | ||||||||||||
| Warranty | 19,284 | 33,957 | 35,792 | 64,359 | ||||||||||||
| Grant and rebate | 6,525 | 45,107 | 13,239 | 61,338 | ||||||||||||
| Other | 36,661 | 45,131 | 88,260 | 95,660 | ||||||||||||
| Total Revenues | 715,828 | 624,418 | 1,293,218 | 1,220,338 | ||||||||||||
| Cost of Revenues: | ||||||||||||||||
| Cost of charging services - company-owned charging stations | 37,283 | 79,060 | 67,012 | 122,821 | ||||||||||||
| Host provider fees | 81,037 | 97,327 | 163,076 | 205,732 | ||||||||||||
| Cost of product sales | 87,800 | 39,287 | 301,120 | 102,820 | ||||||||||||
| Network costs | 86,303 | 77,297 | 163,526 | 144,225 | ||||||||||||
| Warranty and repairs and maintenance | 83,543 | 86,001 | 172,415 | 149,729 | ||||||||||||
| Depreciation and amortization | 25,318 | 74,671 | 57,567 | 152,415 | ||||||||||||
| Total Cost of Revenues | 401,284 | 453,643 | 924,716 | 877,742 | ||||||||||||
| Gross Profit | 314,544 | 170,775 | 368,502 | 342,596 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Compensation | 1,674,042 | 1,131,179 | 3,277,527 | 4,819,815 | ||||||||||||
| General and administrative expenses | 485,055 | 394,048 | 742,191 | 495,217 | ||||||||||||
| Other operating expenses | 538,768 | 493,037 | 1,047,593 | 676,992 | ||||||||||||
| Total Operating Expenses | 2,697,865 | 2,018,264 | 5,067,311 | 5,992,024 | ||||||||||||
| Loss From Operations | (2,383,321 | ) | (1,847,489 | ) | (4,698,809 | ) | (5,649,428 | ) | ||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest income (expense), net | 22,081 | (8,533 | ) | 38,153 | (113,516 | ) | ||||||||||
| Interest expense - related party share transfer | - | - | - | (785,200 | ) | |||||||||||
| Amortization of discount on convertible debt | - | - | - | (528,929 | ) | |||||||||||
| Gain on settlement of debt | - | - | 310,000 | - | ||||||||||||
| Gain on settlement of accounts payable, net | 107,923 | - | 160,423 | 920,352 | ||||||||||||
| Loss on settlement reserve | - | - | - | (127,941 | ) | |||||||||||
| Change in fair value of derivative and other accrued liabilities | (35,494 | ) | 623,237 | (90,236 | ) | 3,647,835 | ||||||||||
| Loss on settlement of liabilities for equity | - | - | - | (2,192,045 | ) | |||||||||||
| Gain on settlement of liabilities to JMJ for equity | - | - | - | 5,800,175 | ||||||||||||
| Other income | 51,591 | - | 149,622 | - | ||||||||||||
| Total Other Income | 146,101 | 614,704 | 567,962 | 6,620,731 | ||||||||||||
| Net (Loss) Income | (2,237,220 | ) | (1,232,785 | ) | (4,130,847 | ) | 971,303 | |||||||||
| Dividend attributable to Series C shareholders | - | - | - | (607,800 | ) | |||||||||||
| Deemed dividend | - | - | - | (23,458,931 | ) | |||||||||||
| Net Loss Attributable to Common Shareholders | $ | (2,237,220 | ) | $ | (1,232,785 | ) | $ | (4,130,847 | ) | $ | (23,095,428 | ) | ||||
| Net Loss Per Share: | ||||||||||||||||
| Basic | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (1.45 | ) | ||||
| Diluted | $ | (0.09 | ) | $ | (0.05 | ) | $ | (0.16 | ) | $ | (1.45 | ) | ||||
| Weighted Average Number of Common Shares Outstanding: | ||||||||||||||||
| Basic | 26,234,376 | 23,229,166 | 26,202,898 | 15,891,388 | ||||||||||||
| Diluted | 26,234,376 | 23,229,166 | 26,202,898 | 15,891,388 | ||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 2 |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive (Loss) Income
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Net (Loss) Income | $ | (2,237,220 | ) | $ | (1,232,785 | ) | $ | (4,130,847 | ) | $ | 971,303 | |||||
| Other Comprehensive Income: | ||||||||||||||||
| Change in fair value of marketable securities | 40,321 | - | 141,007 | - | ||||||||||||
| Total Comprehensive (Loss) Income | $ | (2,196,899 | ) | $ | (1,232,785 | ) | $ | (3,989,840 | ) | $ | 971,303 | |||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 3 |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Statement of Changes in Stockholders’ Equity
For the Six Months Ended June 30, 2019
(unaudited)
| Convertible Preferred Stock | Additional | Accumulated Other | Total | |||||||||||||||||||||||||||||
| Series D | Common Stock | Paid-In | Comprehensive | Accumulated | Stockholders’ | |||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Income | Deficit | Equity | |||||||||||||||||||||||||
| Balance - January 1, 2019 | 5,141 | $ | 5 | 26,118,075 | $ | 26,118 | $ | 175,924,587 | $ | - | $ | (159,856,481 | ) | $ | 16,094,229 | |||||||||||||||||
| - | ||||||||||||||||||||||||||||||||
| Stock-based compensation | - | - | 51,724 | 52 | 118,684 | - | - | 118,736 | ||||||||||||||||||||||||
| - | ||||||||||||||||||||||||||||||||
| Restricted stock issued in satisfaction of accrued issuable equity | - | - | 56,948 | 57 | 199,831 | - | - | 199,888 | ||||||||||||||||||||||||
| - | ||||||||||||||||||||||||||||||||
| Common stock issued upon conversion of Series D convertible preferred stock | (16 | ) | - | 5,128 | 5 | (5 | ) | - | - | - | ||||||||||||||||||||||
| Return and retirement of common stock | - | - | (8,066 | ) | (8 | ) | 8 | - | - | - | ||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | 100,686 | - | 100,686 | ||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | (1,893,627 | ) | (1,893,627 | ) | ||||||||||||||||||||||
| Balance - March 31, 2019 | 5,125 | $ | 5 | 26,223,809 | $ | 26,224 | $ | 176,243,105 | $ | 100,686 | $ | (161,750,108 | ) | $ | 14,619,912 | |||||||||||||||||
| Restricted stock issued in satisfaction of accrued issuable equity | - | - | 12,995 | 13 | 40,142 | - | - | 40,155 | ||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | 185,632 | - | - | 185,632 | ||||||||||||||||||||||||
| Other comprehensive income | - | - | - | - | - | 40,321 | - | 40,321 | ||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | (2,237,220 | ) | (2,237,220 | ) | ||||||||||||||||||||||
| Balance - June 30, 2019 | 5,125 | $ | 5 | 26,236,804 | $ | 26,237 | $ | 176,468,879 | $ | 141,007 | $ | (163,987,328 | ) | $ | 12,648,800 | |||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 4 |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Statement of Changes in Stockholders’ Equity (Deficiency)
For the Six Months Ended June 30, 2018
(unaudited)
| Convertible Preferred Stock | Additional | Total Stockholders’ | ||||||||||||||||||||||||||||||||||||||||||
| Series A | Series C | Series D | Common Stock | Paid-In | Accumulated | (Deficiency) | ||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||||||||||||||
| Balance - January 1, 2018 | 11,000,000 | $ | 11,000 | 229,551 | $ | 230 | - | $ | - | 5,523,673 | $ | 5,524 | $ | 119,499,141 | $ | (156,435,278 | ) | $ | (36,919,383 | ) | ||||||||||||||||||||||||
| Common stock and warrants issued in public offering [1] | - | - | - | - | - | - | 4,353,000 | 4,353 | 14,876,462 | - | 14,880,815 | |||||||||||||||||||||||||||||||||
| Common stock issued upon conversion of Series A convertible preferred stock | (11,000,000 | ) | (11,000 | ) | - | - | - | - | 550,000 | 550 | 10,450 | - | - | |||||||||||||||||||||||||||||||
| Common stock issued in satisfaction of Series B convertible preferred stock | - | - | - | - | - | - | 223,235 | 223 | 824,777 | - | 825,000 | |||||||||||||||||||||||||||||||||
| Common stock issued upon conversion of Series C convertible preferred stock | - | - | (254,557 | ) | (255 | ) | - | - | 9,111,644 | 9,112 | (8,857 | ) | - | - | ||||||||||||||||||||||||||||||
| Series D convertible preferred stock issued in satisfaction of liabilities | - | - | - | - | 12,005 | 12 | - | - | 12,004,988 | - | 12,005,000 | |||||||||||||||||||||||||||||||||
| Common stock issued in partial satisfaction of debt and other liabilities | - | - | - | - | - | - | 1,488,021 | 1,488 | 4,282,500 | - | 4,283,988 | |||||||||||||||||||||||||||||||||
| Warrants reclassified from derivative liabilities | - | - | - | - | - | - | - | - | 36,445 | - | 36,445 | |||||||||||||||||||||||||||||||||
| Series C convertible preferred stock dividends: | ||||||||||||||||||||||||||||||||||||||||||||
| Accrual of dividends earned | - | - | - | - | - | - | - | - | (607,800 | ) | - | (607,800 | ) | |||||||||||||||||||||||||||||||
| Payment of dividends in kind | - | - | 25,006 | 25 | - | - | - | - | 2,500,575 | - | 2,500,600 | |||||||||||||||||||||||||||||||||
| Stock-based compensation | - | - | - | - | - | - | 932,328 | 932 | 2,664,343 | - | 2,665,275 | |||||||||||||||||||||||||||||||||
| Beneficial conversion feature of Series B and C convertible preferred stock | - | - | - | - | - | - | - | - | 23,458,931 | - | 23,458,931 | |||||||||||||||||||||||||||||||||
| Deemed dividend related to immediate accretion of beneficial conversion of Series B and C convertible preferred stock | - | - | - | - | - | - | - | - | (23,458,931 | ) | - | (23,458,931 | ) | |||||||||||||||||||||||||||||||
| Contribution of capital - related party share transfer (see Note 8) | - | - | - | - | - | - | - | - | 785,200 | - | 785,200 | |||||||||||||||||||||||||||||||||
| Net income | - | - | - | - | - | - | - | - | - | 2,204,088 | 2,204,088 | |||||||||||||||||||||||||||||||||
| Balance - March 31, 2018 | - | $ | - | - | $ | - | 12,005 | $ | 12 | 22,181,901 | $ | 22,182 | $ | 156,868,224 | $ | (154,231,190 | ) | $ | 2,659,228 | |||||||||||||||||||||||||
| Common stock issued in partial satisfaction of debt and other liabilities | - | - | - | - | - | - | 25,669 | 25 | 69,975 | - | 70,000 | |||||||||||||||||||||||||||||||||
| Common stock issued upon conversion of Series D convertible preferred stock | - | - | - | - | (4,368 | ) | (4 | ) | 1,400,000 | 1,400 | (1,396 | ) | - | - | ||||||||||||||||||||||||||||||
| Proceeds from exercise of warrants | - | - | - | - | - | - | 4,033,660 | 4,034 | 17,139,022 | - | 17,143,056 | |||||||||||||||||||||||||||||||||
| - | ||||||||||||||||||||||||||||||||||||||||||||
| Return and retirement of common stock | - | - | - | - | - | - | (2,942,099 | ) | (2,942 | ) | 2,942 | - | - | |||||||||||||||||||||||||||||||
| - | ||||||||||||||||||||||||||||||||||||||||||||
| Warrants issued in satisfaction of accrued issuable equity | - | - | - | - | - | - | - | - | 409,042 | - | 409,042 | |||||||||||||||||||||||||||||||||
| - | ||||||||||||||||||||||||||||||||||||||||||||
| Net loss | - | - | - | - | - | - | - | - | - | (1,232,785 | ) | (1,232,785 | ) | |||||||||||||||||||||||||||||||
| Balance - June 30, 2018 | - | $ | - | - | $ | - | 7,637 | $ | 8 | 24,699,131 | $ | 24,699 | $ | 174,487,809 | $ | (155,463,975 | ) | $ | 19,048,541 | |||||||||||||||||||||||||
[1] Includes gross proceeds of $18,504,320, less issuance costs of $3,623,505.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 5 |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
| For The Six Months Ended | ||||||||
| June 30, | ||||||||
| 2019 | 2018 | |||||||
| Cash Flows From Operating Activities: | ||||||||
| Net (loss) income | $ | (4,130,847 | ) | $ | 971,303 | |||
| Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 115,426 | 169,871 | ||||||
| Amortization of discount on convertible debt | - | 528,929 | ||||||
| Change in fair value of derivative and other accrued liabilities | (90,236 | ) | (3,647,835 | ) | ||||
| Provision for bad debt | 72,180 | 56,981 | ||||||
| Gain on settlement of debt | (310,000 | ) | - | |||||
| Loss on settlement reserve | - | 127,941 | ||||||
| Loss on settlement of liabilities for equity | - | 2,192,045 | ||||||
| Gain on settlement of liabilities to JMJ for equity | - | (5,800,175 | ) | |||||
| Interest expense - related party share transfer | - | 785,200 | ||||||
| Provision for slow moving and obsolete inventory | 197,240 | - | ||||||
| Loss on disposal of property and equipment | - | 12,698 | ||||||
| Gain on settlement of accounts payable, net | (160,423 | ) | (920,352 | ) | ||||
| Non-cash compensation: | ||||||||
| Common stock | 267,997 | 2,838,808 | ||||||
| Options | 126,033 | - | ||||||
| Warrants | - | 114,069 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and other receivables | (156,659 | ) | (104,994 | ) | ||||
| Inventory | (671,011 | ) | 93,303 | |||||
| Prepaid expenses and other current assets | 163,775 | (126,343 | ) | |||||
| Other assets | 4,121 | (986,093 | ) | |||||
| Accounts payable and accrued expenses | (533,658 | ) | (4,167,108 | ) | ||||
| Deferred revenue | (106,244 | ) | (33,295 | ) | ||||
| Total Adjustments | (1,081,459 | ) | (8,866,350 | ) | ||||
| Net Cash Used in Operating Activities | (5,212,306 | ) | (7,895,047 | ) | ||||
| Cash Flows From Investing Activities: | ||||||||
| Purchases of property and equipment | (203,357 | ) | (34,524 | ) | ||||
| Net Cash Used In Investing Activities | (203,357 | ) | (34,524 | ) | ||||
| Cash Flows From Financing Activities: | ||||||||
| Proceeds from sale of common stock in public offering [1] | - | 16,243,055 | ||||||
| Payment of public offering costs | - | (1,190,082 | ) | |||||
| Proceeds from issuance of notes payable to non-related party | - | 55,000 | ||||||
| Proceeds from exercise of warrants | - | 17,143,056 | ||||||
| Proceeds from advance from a related party | - | 250,000 | ||||||
| Repayment of notes and convertible notes payable | - | (760,000 | ) | |||||
| Net Cash Provided by Financing Activities | - | 31,741,029 | ||||||
| Net (Decrease) Increase In Cash | (5,415,663 | ) | 23,811,458 | |||||
| Cash - Beginning of Period | 15,538,849 | 185,151 | ||||||
| Cash - End of Period | $ | 10,123,186 | $ | 23,996,609 | ||||
[1] Includes gross proceeds of $18,504,320, less issuance costs of $2,261,265 deducted directly from the offering proceeds.
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 6 |
BLINK CHARGING CO. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows — Continued
(unaudited)
| For The Six Months Ended | ||||||||
| June 30, | ||||||||
| 2019 | 2018 | |||||||
| Supplemental Disclosures of Cash Flow Information: | ||||||||
| Cash paid during the periods for: | ||||||||
| Interest expense | $ | - | $ | 14,278 | ||||
| Non-cash investing and financing activities: | ||||||||
| Common stock issued in partial satisfaction of debt and other liabilities | $ | - | $ | 4,283,988 | ||||
| Reduction of additional paid-in capital for public offering issuance costs that were previously paid | $ | - | $ | (172,158 | ) | |||
| Common stock issued upon conversion of Series A convertible preferred stock | $ | - | $ | 11,000 | ||||
| Common stock issued in satisfaction of Series B convertible preferred stock | $ | - | $ | 825,000 | ||||
| Common stock issued upon conversion of Series C convertible preferred stock | $ | - | $ | 255 | ||||
| Common stock issued upon conversion of Series D convertible preferred stock | $ | 5 | $ | 4 | ||||
| Return and retirement of common stock | $ | (8 | ) | $ | 2,942 | |||
| Warrants issued in satisfaction of accrued issuable equity | $ | - | $ | 409,042 | ||||
| Restricted stock issued in satisfaction of accrued issuable equity | $ | 240,043 | $ | - | ||||
| Change in fair value of marketable securities | $ | 141,007 | $ | - | ||||
| Warrants reclassified from derivative liabilities | $ | - | $ | 36,445 | ||||
| Accrual of contractual dividends on Series C Convertible Preferred Stock | $ | - | $ | 607,800 | ||||
| Issuance of Series C Convertible Preferred Stock in satisfaction of contractual dividends | $ | - | $ | 2,500,600 | ||||
| Transfer of inventory to property and equipment | $ | (59,548 | ) | $ | (27,696 | ) | ||
| Series D convertible preferred stock issued in satisfaction of liabilities | $ | - | $ | 12,005,000 | ||||
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
| 7 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BUSINESS ORGANIZATION, NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Blink Charging Co., through its wholly-owned subsidiaries (collectively, the “Company” or “Blink”), is a leading owner, operator, and provider of electric vehicle (“EV”) charging equipment and networked EV charging services. Blink offers both residential and commercial EV charging equipment, enabling EV drivers to easily recharge at various location types. Blink’s principal line of products and services is its Blink EV charging network (the “Blink Network”) and EV charging equipment, also known as electric vehicle supply equipment (“EVSE”) and EV-related services. The Blink Network is a proprietary cloud-based software that operates, maintains, and tracks the Blink EV charging stations and their associated charging data. The Blink Network provides property owners, managers, and parking companies (“Property Partners”) with cloud-based services that enable the remote monitoring and management of EV charging stations, payment processing, and provides EV drivers with vital station information including station location, availability, and applicable fees. Blink offers its Property Partners a range of business models for EV charging equipment and services that generally fall into one of the three business models below.
| ● | In the Company’s comprehensive Turnkey business model, Blink owns and operates the EV charging equipment, undertakes and manages the installation, maintenance and related services, and Blink keeps substantially all of the EV charging revenue. | |
| ● | In the Company’s Hybrid business model, the Property Partner incurs the installation costs, while Blink provides the charging equipment. Blink operates and manages the EV charging station and provides connectivity of the charging station to the Blink Network. As a result, Blink shares a greater portion of the EV charging revenue with the Property Partner than under the turnkey model above. | |
| ● | In the Company’s Host owned business model, the Property Partner purchases, owns and manages the Blink EV charging station, incurs the installation costs of the equipment, while Blink provides site recommendations, connectivity to the Blink Network and optional maintenance services, and the Property Partner keeps substantially all of the EV charging revenue. |
The Company has strategic partnerships across numerous transit/destination locations, including airports, auto dealers, healthcare/medical, hotels, mixed-use, municipal locations, multifamily residential and condos, parks and recreation areas, parking lots, religious institutions, restaurants, retailers, schools and universities, stadiums, supermarkets, transportation hubs, and workplace locations. Through June 30, 2019, the Company has approximately 14,687 charging stations deployed, of which, 4,991 were Level 2 commercial charging units, 97 were DC Fast Charging EV chargers and 1,617 were residential charging units in service on the Blink Network. Additionally, as of June 30, 2019, the Company has approximately 403 Level 2 charging units deployed on other networks and 7,579 non-networked, residential Blink EV charging stations. The non-networked, residential Blink EV charging stations are all Property Partner owned.
The 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”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of June 30, 2019 and for the three and six months then ended. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the operating results for the full year ending December 31, 2019 or any other period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related disclosures of the Company as of December 31, 2018 and for the year then ended, which were filed with the Securities and Exchange Commission (“SEC”) on April 1, 2019 as part of the Company’s Annual Report on Form 10-K.
| 8 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
2. GOING CONCERN AND MANAGEMENT’S PLANS
As of June 30, 2019, the Company had cash, marketable securities, working capital and an accumulated deficit of $10,123,186, $3,032,386, $11,760,762 and $163,987,328, respectively. During the three and six months ended June 30, 2019, the Company incurred a net loss of $2,237,220 and $4,130,847, respectively. During the six months ended June 30, 2019, the Company used cash in operating activities of $5,212,306. These conditions raise substantial doubt about the Company’s ability to continue as a going concern within a year after the issuance date of these financial statements. The Company expects to have the cash required to fund its operations into the third quarter of 2020 while it continues to apply efforts to raise additional debt and/or equity.
Since inception, the Company’s operations have primarily been funded through proceeds received in equity and debt financings. Although management believes that the Company has access to capital resources, there are currently no commitments in place for new financing at this time and there is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its development initiatives or attain profitable operations. If the Company is unable to obtain additional financing on a timely basis, it may have to curtail its development, marketing and promotional activities, which would have a material adverse effect on the Company’s business, financial condition and results of operations, and ultimately the Company could be forced to discontinue its operations and liquidate.
The Company’s operating needs include the planned costs to operate its business, including amounts required to fund working capital and capital expenditures. The Company’s future capital requirements and the adequacy of its available funds will depend on many factors, including the Company’s ability to successfully commercialize its products and services, competing technological and market developments, and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement its product and service offerings.
The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. GAAP, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The condensed consolidated financial statements do not include any adjustment that might become necessary should the Company be unable to continue as a going concern.
| 9 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Since the Annual Report for the year ended December 31, 2018, there have been no material changes to the Company’s significant accounting policies, except as disclosed in this note.
CASH
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents in the condensed consolidated financial statements. The Company has cash on deposits in several financial institutions which, at times, may be in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. The Company has not experienced losses in such accounts and periodically evaluates the creditworthiness of its financial institutions. The Company reduces its credit risk by placing its cash and cash equivalents with major financial institutions. As of June 30, 2019, the Company had cash balances in excess of FDIC insurance limits of $9,527,976. As of December 31, 2018, the Company had cash balances in excess of FDIC insurance limits of $15,538,849.
INVESTMENTS
Available-for-sale securities are recorded at fair value with the net unrealized gains and losses (that are deemed to be temporary) reported as a component of other comprehensive income (loss). Realized gains and losses and charges for other-than-temporary impairments are included in determining net income, with related purchase costs based on the first-in, first-out method. The Company evaluates its available-for-sale-investments for possible other-than-temporary impairments by reviewing factors such as the extent to which, and length of time, an investment’s fair value has been below the Company’s cost basis, the issuer’s financial condition, and the Company’s ability and intent to hold the investment for sufficient time for its market value to recover. For impairments that are other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s cost and its fair value at the balance sheet date of the reporting period for which the assessment is made. The fair value of the investment then becomes the new amortized cost basis of the investment and it is not adjusted for subsequent recoveries in fair value.
The following summarizes our investments as of June 30, 2019 and December 31, 2018:
| June 30, 2019 | December 31, 2018 | |||||||
| Short-term investments: | ||||||||
| Available- for-sale investments | $ | 3,032,386 | $ | 2,878,664 | ||||
The following is a summary of the unrealized gains, and fair value by investment type as of June 30, 2019 and December 31, 2018:
| June 30, 2019 | ||||||||
| Gross Unrealized Gains | Fair Value | |||||||
| Fixed income | $ | 141,007 | $ | 3,032,386 | ||||
| December 31, 2018 | ||||||||
| Gross Unrealized Gains | Fair Value | |||||||
| Fixed income | $ | - | $ | 2,878,664 | ||||
| 10 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
REVENUE RECOGNITION
The Company recognizes revenue primarily from four different types of contracts:
| ● | Charging service revenue – company-owned charging stations - Revenue is recognized at the point when a particular charging session is completed. |
| ● | Product sales – Revenue is recognized at the point where the customer obtains control of the goods and the Company satisfies its performance obligation, which generally is at the time it ships the product to the customer. |
| ● | Network fees and other – Represents a stand-ready obligation whereby the Company is obligated to perform over a period of time and, as a result, revenue is recognized on a straight-line basis over the contract term. Network fees are billed annually. |
| ● | Other – Primarily related to charging service revenue from non-company-owned charging stations. Revenue is recognized from non-company-owned charging stations at the point when a particular charging session is completed in accordance with a contractual relationship between the Company and the owner of the station. |
The following table summarizes revenue recognized under ASC 606 in the condensed consolidated statements of operations:
| For The Three Months Ended | For The Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenues - Recognized at a Point in Time: | ||||||||||||||||
| Charging service revenue - company-owned charging stations | $ | 294,985 | $ | 301,350 | $ | 619,880 | $ | 607,097 | ||||||||
| Product sales | 282,014 | 142,839 | 385,218 | 278,599 | ||||||||||||
| Other | 36,661 | 45,131 | 88,260 | 95,660 | ||||||||||||
| Total Revenues - Recognized at a Point in Time | 613,660 | 489,320 | 1,093,358 | 981,356 | ||||||||||||
| Revenues - Recognized Over a Period of Time: | ||||||||||||||||
| Network fees and other | 95,643 | 89,991 | 186,621 | 177,644 | ||||||||||||
| Total Revenues - Recognized Over a Period of Time | 95,643 | 89,991 | 186,621 | 177,644 | ||||||||||||
| Total Revenue Under ASC 606 | $ | 709,303 | $ | 579,311 | $ | 1,279,979 | $ | 1,159,000 | ||||||||
The timing of the Company’s revenue recognition may differ from the timing of payment by its customers. A receivable is recorded when revenue is recognized prior to payment and the Company has an unconditional right to payment. Alternatively, when payment precedes the provision of the related goods or services, the Company records deferred revenue until the performance obligations are satisfied.
As of June 30, 2019, the Company had $169,572 related to contract liabilities where performance obligations have not yet been satisfied, which has been included within deferred revenue on the condensed consolidated balance sheet as of June 30, 2019. The Company expects to satisfy its remaining performance obligations for network fees and warranty revenue and recognize the revenue within the next twelve months.
During the three and six months ended June 30, 2019, the Company recognized $84,906 and $168,185, respectively of revenues related to network fees and warranty contracts, which were included in deferred revenues as of December 31, 2018.
During the three and six months ended June 30, 2019, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods.
| 11 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
REVENUE RECOGNITION - CONTINUED
Grants, rebates and alternative fuel credits, which are not within the scope of ASC 606, pertaining to revenues and periodic expenses are recognized as income when the related revenue and/or periodic expense are recorded. Grants and rebates related to EV charging stations and their installation are deferred and amortized in a manner consistent with the related depreciation expense of the related asset over their useful lives over the useful life of the charging station. During the three months ended June 30, 2019 and 2018, the Company recorded $6,525 and $45,107 respectively, related to grant, rebate and alternative fuel credits revenue. During the six months ended June 30, 2019 and 2018, the Company recorded $13,239 and $61,338 respectively, related to grant, rebate and alternative fuel credits revenue.
At June 30, 2019 and December 31, 2018, there was $92,827 and $106,066, respectively, of deferred grant and rebate revenue to be amortized.
CONCENTRATIONS
As of June 30, 2019, and December 31, 2018, accounts receivable from a significant customer was 32% and 35% of accounts receivable, respectively.
NET LOSS PER COMMON SHARE
Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted average number of common shares outstanding, plus the number of additional common shares that would have been outstanding if the common share equivalents had been issued (computed using the treasury stock or if converted method), if dilutive.
The following common share equivalents are excluded from the calculation of weighted average common shares outstanding because their inclusion would have been anti-dilutive:
| For the Three and Six Months Ended | ||||||||
| June 30, | ||||||||
| 2019 | 2018 | |||||||
| Convertible preferred stock | 1,642,628 | 2,447,756 | ||||||
| Warrants | 6,841,049 | 6,855,224 | ||||||
| Options | 135,741 | 106,408 | ||||||
| Total potentially dilutive shares | 8,619,418 | 9,409,388 | ||||||
RECLASSIFICATIONS
Certain prior year balances have been reclassified in order to conform to current year presentation. These reclassifications have no effect on previously reported results of operations or loss per share.
| 12 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
RECENTLY ISSUED ACCOUNTING STANDARDS
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) and also issued subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, and ASU 2019-05 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. The Company will be required to adopt the provisions of this ASU on January 1, 2020, with early adoption permitted. The Company is currently assessing the impact that this pronouncement will have on its condensed consolidated financial statements.
In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments (“ASU 2019-04”). The new ASU provides narrow-scope amendments to help apply these recent standards. The Company will be required to adopt the provisions of this ASU on January 1, 2020, with early adoption permitted for certain amendments. The Company is currently assessing the impact that this pronouncement will have on its condensed consolidated financial statements.
4. PREPAID EXPENSES AND OTHER CURRENT ASSETS
As of June 30, 2019, the Company had remaining purchase commitments to acquire second generation charging stations with an aggregate value of $1,437,400. The Company has a remaining deposit of $175,235 against this commitment, which is included within prepaid expenses and other current assets on the condensed consolidated balance sheet as of June 30, 2019. The remaining commitment of $1,262,165 will become due upon delivery of the charging stations.
5. ACCRUED EXPENSES
SUMMARY
Accrued expenses consist of the following:
| June 30, 2019 | December 31, 2018 | |||||||
| (unaudited) | ||||||||
| Accrued taxes payable | $ | 611,630 | $ | 556,211 | ||||
| Accrued host fees | 57,011 | 54,527 | ||||||
| Accrued professional, board and other fees | 84,500 | 159,500 | ||||||
| Accrued wages | 160,172 | 493,069 | ||||||
| Accrued commissions | 6,500 | 22,300 | ||||||
| Warranty payable | 21,000 | 9,700 | ||||||
| Accrued interest expense | - | 32,034 | ||||||
| Inventory in transit | - | 195,480 | ||||||
| Other accrued expenses | 22,373 | 22,100 | ||||||
| Total accrued expenses | $ | 963,186 | $ | 1,544,921 | ||||
| 13 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
5. ACCRUED EXPENSES – CONTINUED
WARRANTY PAYABLE
The Company provides a limited product warranty against defects in materials and workmanship for its Blink Network residential and commercial chargers, ranging in length from one to two years. The Company accrues for estimated warranty costs at the time of revenue recognition and records the expense of such accrued liabilities as a component of cost of sales. Estimated warranty costs are based on historical product data and anticipated future costs. Should actual cost to repair and failure rates differ significantly from estimates, the impact of these unforeseen costs would be recorded as a change in estimate in the period identified. For the six months ended June 30, 2019, the change in reserve was approximately $11,000. Warranty expenses for the three and six months ended June 30, 2019 and 2018 were $83,543 and $172,415 and $86,001 and $149,729, respectively, which has been included within cost of revenues on the condensed consolidated statements of operations. As of June 30, 2019 and December 31, 2018, the Company recorded a warranty liability of $21,000 and $9,700, respectively representing the estimated cost to repair those chargers under warranty or host owned chargers for which the host has procured a maintenance contract. The Company records maintenance and repairs expenses for chargers it owns deployed at host locations as incurred. The Company estimates an approximate cost of $167,000 to repair those deployed chargers which it owns as of June 30, 2019.
6. ACCRUED ISSUABLE EQUITY
Accrued issuable equity consists of the following:
| June 30, 2019 | December 31, 2018 | |||||||
| (unaudited) | ||||||||
| Common stock | $ | 284,808 | $ | 187,523 | ||||
| Warrants | 8,706 | 5,965 | ||||||
| Options | - | 125,005 | ||||||
| Total accrued issuable equity | $ | 293,514 | $ | 318,493 | ||||
See Note 9 – Stockholders’ Equity for additional information.
7. NOTES PAYABLE
See Note 11 – Commitments and Contingencies – Litigation and Disputes for additional information.
8. FAIR VALUE MEASUREMENT
Assumptions
utilized in the valuation of Level 3 liabilities are described as follows:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Risk-free interest rate | 1.88%-2.45 | % | 2.39% - 2.63 | % | 1.88%-2.45 | % | 1.62% - 2.63 | % | ||||||||
| Contractual term (years) | 1.00-10.00 | 0.28 - 3.00 | 1.00-10.00 | 0.25- 3.25 | ||||||||||||
| Expected volatility | 106%-139 | % | 131% - 171 | % | 106%-140 | % | 113% - 171 | % | ||||||||
| Expected dividend yield | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
| 14 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
8. FAIR VALUE MEASUREMENT – CONTINUED
The following table sets forth a summary of the changes in the fair value of Level 3 warrant liabilities that are measured at fair value on a recurring basis:
| Warrants Payable | ||||
| Beginning balance as of January 1, 2019 | $ | 5,965 | ||
| Change in fair value of warrants payable | 2,741 | |||
| Ending balance as of June 30, 2019 | $ | 8,706 | ||
See Note 6 - Accrued Issuable Equity for additional information.
Assets and liabilities measured at fair value on a recurring or nonrecurring basis are as follows:
| June 30, 2019 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Alternative fuel credits | $ | 357,366 | $ | - | $ | - | $ | 357,366 | ||||||||
| Marketable securities | 3,032,386 | - | - | 3,032,386 | ||||||||||||
| Total assets | $ | 3,389,752 | $ | - | $ | - | $ | 3,389,752 | ||||||||
| Liabilities: | ||||||||||||||||
| Warrants payable | $ | - | $ | - | $ | 8,706 | $ | 8,706 | ||||||||
| Total liabilities | $ | - | $ | - | $ | 8,706 | $ | 8,706 | ||||||||
| December 31, 2018 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets: | ||||||||||||||||
| Alternative fuel credits | $ | 331,120 | $ | - | $ | - | $ | 331,120 | ||||||||
| Marketable securities | 2,878,664 | - | - | 2,878,664 | ||||||||||||
| Total assets | $ | 3,209,784 | $ | - | $ | - | $ | 3,209,784 | ||||||||
| Liabilities: | ||||||||||||||||
| Warrants payable | $ | - | $ | - | $ | 5,965 | $ | 5,965 | ||||||||
| Total liabilities | $ | - | $ | - | $ | 5,965 | $ | 5,965 | ||||||||
| 15 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
9. STOCKHOLDERS’ EQUITY
PREFERRED STOCK
SERIES D CONVERTIBLE PREFERRED STOCK
On February 22, 2019, JMJ elected to convert 16 shares of Series D Convertible Preferred Stock into 5,128 shares of the Company’s common stock at a conversion price of $3.12 per share.
COMMON STOCK
On February 2, 2019, the Company issued 51,724 shares of common stock to independent board members for services rendered during 2018 and 2019 with a grant date fair value of $114,310.
On February 19, 2019, the Company retired 8,066 shares of common stock previously in accordance with a settlement agreement with the former members of 350 Green LLC. See Note 10 – Commitments and Contingencies – Litigation and Disputes for additional details.
On February 22, 2019, the Company issued 56,948 shares of common stock to Michael J. Calise, the Company’s former CEO, in connection with his repositioning agreement with a grant date fair value of $199,888. Such amount was previously accrued for as of December 31, 2018.
On April 18, 2019, the Company issued 12,995 shares of common stock to executives with a grant date fair value of $40,155. Such amount was previously accrued for as of December 31, 2018.
STOCK-BASED COMPENSATION
The Company recognized stock-based compensation expense related to common stock, stock options and warrants for the three months ended June 30, 2019 and 2018 of $283,394 and $135,563 respectively, which is included within compensation expense on the condensed consolidated statements of operations. The Company recognized stock-based compensation expense related to common stock, stock options and warrants for the six months ended June 30, 2019 and 2018 of $394,030 and $2,952,877, respectively, which is included within compensation expense on the condensed consolidated statements of operations.
As of June 30, 2019, there was $209,634 of unrecognized stock-based compensation expense that will be recognized over the weighted average remaining vesting period of 0.6 years.
STOCK OPTIONS
During the six months ended June 30, 2019, the Company issued ten-year immediately vested options to purchase an aggregate of 4,400 shares of common stock to the Executive Chairman with exercise prices ranging from $2.55 to $3.30 per share. The options had an aggregate grant date fair value of $11,889, which was recognized immediately.
During the six months ended June 30, 2019, the Company granted options to purchase an aggregate of 72,000 shares of common stock to an executive with an exercise price of $3.45 per share. The options vest ratably over a six-month period from the date of grant. The options had an aggregate grant date fair value of $220,831, which will be recognized ratably over the vesting period. During the three and six months ended June 30, 2019, the Company recognized $147,221 of expense related to this award.
| 16 |
BLINK CHARGING CO. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
10. LEASES
OPERATING LEASES
On March 5, 2019, the Company entered into a 26-month lease agreement for an additional 1,241 square feet of office space in its current Miami Beach office building, beginning April 1, 2019 and ending May 31, 2021. The tenant and