RELATED PARTY TRANSACTIONS
|9 Months Ended|
Sep. 30, 2022
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
8. RELATED PARTY TRANSACTIONS
The Company and a group of Cyprus entities entered into a shareholders’ agreement on February 11, 2019, pertaining to the parties ‘respective shareholdings in a new joint venture entity, Blink Charging Europe Ltd. (the “Entity”), that was formed under the laws of Cyprus on the same date. Subsequently, two of the three Cyprus entities exited from the Entity. Pursuant to the agreement, the Company is not required to fund operating losses. The Company owns % of the Entity while another entity owns %of the Entity. The Entity currently owns % of a Greek subsidiary, Blink Charging Hellas SA (“Hellas”), which started operations in the Greek EV market. There are currently no plans for the Company to make any capital contributions or investments. During the three and nine months ended September 30, 2022, the Company recognized sales of $ and $ , respectively, and $ and $ during the three and nine months ended September 30, 2021, respectively, to Hellas. As of September 30, 2022 and December 31, 2021,the Company had a receivable from Hellas of approximately $ and $ , respectively and a payable to Hellas of approximately $ and $ respectively. The Company determined that the Entity is a variable interest entity, however, the Company does not have a controlling financial interest and, as a result, the Company is not required to consolidate the Entity and instead has applied equity method accounting to its investment in the Entity. From inception through September 30, 2022, the Entity has not generated net income and, as a result, pursuant to ASC 323, the Company has not recorded a gain or loss on its equity method investment in the Entity during the three and nine months ended September 30, 2022 and 2021.
Earlier during 2022, two senior management employees in the recently acquired entity, Blue Corner, had an ownership interest in a major supplier of charging equipment for Blue Corner. As of September 30, 2022, this related party relationship does not exist since, as of September 30, 2022, those two senior management employees are no longer with Blue Corner.
ELECTRIC BLUE LIMITED
As of September 30, 2022, several close family members of a senior management employee are providing services to Electric Blue Limited. For the quarter ended September 30, 2022, these related parties have collectively provided services worth $50 to Electric Blue Limited Furthermore, as of September 30, 2022, there was a payable of $12 and purchase commitments of $112 to the same related parties.
BLINK CHARGING CO. AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements
(in thousands, except for share and per share amounts)
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef