Blink Charging Co. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2022

The Company’s reporting currency is the United States dollar. The functional currency of certain subsidiaries is the Euro and the Indian Rupee. Assets and liabilities are translated based on the exchange rates at the balance sheet date (1.1112 for the Euro and 0.0132 for the Indian Rupee as of March 31, 2022), while expense accounts are translated at the weighted average exchange rate for the period (1.1219 for the Euro and 0.0133 for the Indian Rupee for the three months ended March 31, 2022). Equity accounts are translated at historical exchange rates. The resulting translation adjustments are recognized in stockholders’ equity as a component of accumulated other comprehensive income. Comprehensive income (loss) is defined as the change in equity of an entity from all sources other than investments by owners or distributions to owners and includes foreign currency translation adjustments as described above. Transaction gains and losses are charged to the statement of operations as incurred. Transaction gains attributable to foreign exchange were $3 during the three months ended March 31, 2022.

REVENUE RECOGNITION

The Company recognizes revenue primarily from five 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.
●	Ride-sharing services – Primarily related to ride-sharing services agreement with the City of Los Angeles which allows customers the ability to rent electric vehicles through a subscription service. The Company recognizes revenue over the contractual period of performance of the subscription.
●	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. Other revenues also comprises of revenues generated from alternative fuel credits.

The following table summarizes revenue recognized under ASC 606 in the condensed consolidated statements of operations:


	For The Three Months Ended
	March 31,
	2022		2021
Revenues - Recognized at a Point in Time
Product sales	$	8,052	$	1,671
Charging service revenue - company-owned charging stations		1,107		182
Other		99		60
Total Revenues - Recognized at a Point in Time		9,258		1,913

Revenues - Recognized Over a Period of Time:
Ride-sharing services		239		46
Network and other fees		228		123
Total Revenues - Recognized Over a Period of Time		467		169

Total Revenue	$	9,725	$	2,082

BLINK CHARGING CO. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands except for share and per share amounts)

(UNAUDITED)

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

REVENUE RECOGNITION – CONTINUED

The following table summarizes our revenue recognized under ASC 606 in the consolidated statements of operations by geographical area:


	For The Three Months Ended
	March 31,
	2022		2021
Revenues by Geographical Area
U.S.A	$	5,781	$	1,085
International		3,944		997
Total Revenue	$	9,725	$	2,082

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 March 31, 2022, the Company had $3,402 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 March 31, 2022. The Company expects to satisfy $2,741 of its remaining performance obligations for network fees, charging services, warranty revenue, product sales, and other and recognize the revenue within the next twelve months.

During the three months ended March 31, 2022, the Company recognized $181 of revenues related to network fees and warranty contracts, which were included in deferred revenues as of December 31, 2021. During the three months ended March 31, 2022, there was no revenue recognized from performance obligations satisfied (or partially satisfied) in previous periods.

Grants and rebates 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 March 31, 2022 and 2021, the Company recorded $75 and $150, respectively, related to grant and rebate revenue. At March 31, 2022 and December 31, 2021, there was $70 of deferred grant and rebate revenue to be amortized.

CONCENTRATIONS

As of March 31, 2022, accounts receivable from a significant customer were approximately 17% of total accounts receivable. As of December 31, 2021, accounts receivable from a significant customer were approximately 18% of total accounts receivable. During the three months ended March 31, 2022, sales to a significant customer represented 13% of total revenue and sales to another significant customer represented 12% of total revenue. During the three months ended March 31, 2021, sales to a significant customer represented 21% of total revenue and another significant customer represented 20% of total revenues. During the three months ended March 31, 2022 and 2021, the Company made purchases from a significant supplier that represented 14% and 28% of total purchases, 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 Months Ended
	March 31,
	2022		2021
Warrants		3,257,989		3,510,129
Options		977,473		644,987
Unvested restricted common stock		-		48,819
Total potentially dilutive shares		4,235,462		4,203,935