RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2023 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
4. RELATED PARTY TRANSACTIONS
See Note 6 – Commitments and Contingencies – Purchase Commitments for disclosure of a commitment made to a related party.
JOINT VENTURE
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 Cyprus entities sold its interest to the remaining Cyprus entity. Pursuant to the agreement, the Company is not required to fund operating losses. The Company owns of the Entity while the other entity owns of the Entity. The Entity currently owns 100% 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 additional capital contributions or investments. During the three months ended March 31, 2023 and 2022, the Company recognized sales of $0 and $68, respectively, to Hellas. As of March 31, 2023 and December 31, 2022 the Company had a payable of approximately $53 and $84, respectively, to Hellas. 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 March 31, 2023, 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 months ended March 31, 2023 and 2022.
BLINK CHARGING UK LIMITED
As of March 31, 2023, several close family members of a senior management employee are providing services to Blink Charging UK Limited (“Blink UK”), formerly known as Electric Blue Limited. For the three months ended March 31, 2023, these related parties have collectively provided services worth $86 to Blink UK. Furthermore, as of March 31, 2023, there were purchase commitments of $142 to the same related parties.
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