RELATED PARTY TRANSACTIONS |
3 Months Ended |
|---|---|
Mar. 31, 2024 | |
| Related Party Transactions [Abstract] | |
| RELATED PARTY TRANSACTIONS |
5. RELATED PARTY TRANSACTIONS
See Note 8 – 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. The Company owns of the Entity while the other three parties own 60% of the Entity. Subsequently, two of the three other parties exited the joint venture, and the remaining other party acquired the ownership of the exiting parties. The Entity currently owns 100% of a Greek subsidiary, Blink Charging Hellas SA (“Hellas”), which operates in the electric vehicle market in Greece. The obligation to fund the future operations of the Entity is limited to the Company’s ownership. During the three months ended March 31, 2024 and 2023, the Company did not recognized any sales to Hellas. As of March 31, 2024 and December 31, 2023, the Company had a payable of approximately $174 and $114, respectively, to Hellas. In addition, the Company has provided working capital of $279 and $177 as of March 31, 2024 and December 31, 2023 respectively, in Hellas. The Company has written off this working capital contribution, since Company’s proportion of Hellas’s net losses exceeds the working capital contribution.
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, 2024, 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, 2024 and 2023.
BLINK CHARGING UK LIMITED
As of March 31, 2024, several close family members of a senior management employee of the Company are providing services to Electric Blue Limited. For the three months ended March 31, 2024, these related parties have collectively provided services worth $82 to Electric Blue Limited.
BLINK CHARGING CO.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (in thousands, except for share and per share amounts)
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