Annual report [Section 13 and 15(d), not S-K Item 405]

REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

v3.26.1
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS
 12 Months Ended
Dec. 31, 2025
Accounting Changes and Error Corrections [Abstract]  
REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

19. REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

 

In connection with the preparation of the Company’s consolidated financial statements for the year ended December 31, 2025, the Company identified a number of misstatements in the Company’s previously issued financial statements as summarized below. The identified misstatements impacted certain components of the balance sheet, statement of operations, statement of comprehensive loss, statement of changes in stockholders’ equity and statement of cash flows in the consolidated financial statements included in the Form 10-K for the year ended December 31, 2024. The Company assessed the materiality of the errors, including the presentation on prior period consolidated financial statements, on a qualitative and quantitative basis in accordance with SEC Staff Accounting Bulletin Topics 1.M and 1.N (formerly No. 99, Materiality).

 

Based on this assessment, the Company concluded that these errors and the related impacts did not result in a material misstatement of its previously issued consolidated financial statements as of and for the year ended December 31, 2024. However, the Company concluded the financial statements should be revised for these errors.

 

The revisions consist of the following adjustments:

 

  (a) Reclassification of $656 of asset-related grant income from revenue to a reduction of depreciation expense to more appropriately reflect the nature of the grants as reimbursements of depreciable asset costs. No net impact on the balance sheet; this is an income statement reclassification between revenue and depreciation expense with no effect on net loss.
     
  (b) Adjustments to the timing of recognition of network fee revenues of $764 and warranty revenues of $740, totaling $1,504, to correctly align revenue recognition with the satisfaction of the related performance obligations. A related $40 reduction in cost of product sales was also recorded. Impact on balance sheet: Accounts payable, accrued expenses and other current liabilities increased by $1,464, representing deferred performance obligations. Net impact on income statement: $1,464 increase to net loss. Cash flow impact: The increase in net loss is offset by an increase in accounts payable, accrued expenses, and other current liabilities.
     
  (c) Write-off of $1,672 related to certain installed charging units that were determined not to be performing to specifications. Impact on balance sheet: Inventory decreased by $1,672, with an offsetting charge to cost of product sales. Cash flow impact: No net impact on operating cash flows.
     
  (d) Write-off of $1,730 related to older, incomplete charger deployment projects for which the Company determined the related costs no longer met the criteria for capitalization. Additionally, $108 of incremental costs were recognized within general and administrative expenses and $40 of incremental costs were recognized within cost of product sales. Impact on balance sheet: Property and equipment, net decreased by $1,290 (gross cost of $1,730 less $440 accumulated depreciation), with the net book value charge of $1,290 recorded through cost of product sales. Accounts payable, accrued expenses and other current liabilities increased by $148. Cash flow impact: No net impact on operating cash flows.
     
  (e) Reversal of $1,330 of a previously accrued purchase liability that the Company determined was no longer a valid obligation . Impact on balance sheet: Accounts payable, accrued expenses and other current liabilities decreased by $1,330, with a corresponding $1,330 benefit recorded through cost of product sales. Cash flow impact: No net impact on operating cash flows.
     
  (f) The Company recorded reclassifications of grant-related receivables and deferred grant income to more appropriately reflect the nature and expected timing of settlement of those balances: (i) grant-related receivables of $1,129 were reclassified from accounts receivable to prepaid expenses and other current assets; (ii) deferred grant income of $281 was reclassified from deferred revenue current to accounts payable, accrued expenses and other current liabilities; (iii) non-current deferred grant income of $5,543 was reclassified to other liabilities as part of the overall reallocation of grant-related deferred income between current and non-current classifications. These are balance sheet reclassifications with no impact on net loss. Cash flow impact: $1,129 of government grant proceeds was reclassified from operating activities to investing activities. No impact on total cash flows.
     
  (g) The revision adjustments described in the notes above resulted in an aggregate increase to the pre-tax loss of $3,244. The related tax effect of these adjustments resulted in a $58 decrease in the provision for income taxes, from $714 to $656 with an offset to Accounts payable, accrued expenses and other current liabilities. After giving effect to the tax provision adjustment, the net impact on accumulated deficit was $3,186.

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)

 

19. REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

 

A summary of the corrections to the impacted financial statement line items in the Company’s previously issued consolidated financial statements as of and for the year ended December 31, 2024 are as follows:

 

Consolidated Balance Sheet

(in thousands)

 

As of December 31, 2024

 

    As Previously Reported     Revision Adjustments     Notes     As Revised  
Assets                                
Current Assets:                                
Accounts receivable, net   $ 43,201     $ (1,129 )     (f)     $ 42,072  
Inventory, net     38,280       (1,672 )     (c)       36,608  
Prepaid expenses and other current assets     4,267       1,129       (f)       5,396  
                                 
Total Current Assets     141,152       (1,672 )             139,480  
Property and equipment, net     38,671       (1,290 )     (d)       37,381  
                                 
Total Assets   $ 217,988     $ (2,962 )           $ 215,026  
                                 
Liabilities and Stockholders’ Equity                                
                                 
Current Liabilities:                                
Accounts payable, accrued expenses and other current liabilities   $ 38,370     $ 505       (b), (e), (f)     $ 38,875  
Current portion of deferred revenue     17,359       (281 )     (f)       17,078  
                                 
Total Current Liabilities     59,244       224               59,468  
Deferred revenue, non-current portion     10,603       (5,543 )     (f)       5,060  
Other liabilities     1,152       5,543       (f)       6,695  
                                 
Total Liabilities     99,286       224               99,510  
                                 
Stockholders’ Equity:                                
Accumulated deficit     (735,855 )     (3,186 )     (a)-(g)       (739,041 )
                                 
Total Stockholders’ Equity     118,702       (3,186 )             115,516  
                                 
Total Liabilities and Stockholders’ Equity   $ 217,988     $ (2,962 )           $ 215,026  

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)

 

19. REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

 

Consolidated Statement of Operations-For the Year Ended December 31, 2024

 

(in thousands)

 

    As Previously Reported     Revision Adjustments     Notes     As Revised  
Revenues:                              
Network fees   $ 8,716     $ (764 )     (b)     $ 7,952  
Warranty     6,427       (740 )     (b)       5,687  
Grant and fees rebate     1,704       (656 )     (a)       1,048  
                                 
Total Revenues     126,197       (2,160 )             124,037  
                                 
Cost of Revenues:                                
Cost of product sales     54,164       1,632       (b), (c), (d), (e)       55,796  
Depreciation and amortization     6,299       (656 )     (a)       5,643  
                                 
Total Cost of Revenues     85,416       976               86,392  
                                 
Gross Profit     40,781       (3,136 )             37,645  
                                 
Operating Expenses:                                
General and administrative expenses     31,779       108       (d)       31,887  
                                 
Total Operating Expenses     240,729       108               240,837  
                                 
Loss From Operations     (199,948 )     (3,244 )             (203,192 )
                                 
Other Income (Expense):                                
                                 
Loss Before Income Taxes   $ (197,418 )   $ (3,244 )           $ (200,662 )
                                 
Provision for income taxes     (714 )     58       (g)       (656 )
                                 
Net Loss   $ (198,132 )   $ (3,186 )           $ (201,318 )
Net Loss Per Share:                                
 Basic   $ (1.96 )   $ (0.03 )           $ (2.00 )
 Diluted   $ (1.96 )   $ (0.03 )           $ (2.00 )
                                 
Weighted Average Number of Common Shares Outstanding:                                
Basic     100,844,970       100,844,970               100,844,970  
Diluted     100,844,970       100,844,970               100,844,970  

 

Consolidated Statement of Comprehensive Loss- For the Year Ended December 31, 2024

(in thousands)

 

    As Previously Reported     Revision Adjustments     As Revised  
                   
Net Loss   $ (198,132 )   $ (3,186 )   $ (201,318 )
Other Comprehensive Loss:                        
Cumulative translation adjustments     (3,309 )     -       (3,309 )
                         
Total Comprehensive Loss   $ (201,441 )   $ (3,186 )   $ (204,627 )

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)

 

19. REVISION OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

 

Consolidated Statement of Changes in Stockholder’s Equity

(in thousands)

 

As of December 31, 2024

 

    As Previously Reported     Revision Adjustments     As Revised  
                   
Stockholders’ Equity:                        
Accumulated deficit     (735,855 )     (3,186 )     (739,041 )
                         
Total Stockholders’ Equity   $ 118,702     $ (3,186 )   $ 115,516  

 

Consolidated Statement of Cash Flows- For the Year Ended December 31, 2024

(in thousands)

 

    As Previously Reported     Revision Adjustments     Notes     As Revised  
                           
Cash Flows From Operating Activities:                                
Net loss   $ (198,132 )   $ (3,186 )     (a)-(g)     $ (201,318 )
Adjustments to reconcile net loss to net cash                                
 used in operating activities:                                
Depreciation and amortization     13,407       (656 )     (a)       12,751  
Loss on disposal of property and equipment     679       1,290       (d)       1,969  
Provision for slow moving and obsolete inventory     2,352       1,672       (c)       4,024  
Changes in operating assets and liabilities:                             -  
Accounts receivable     (2,036 )     1,130       (f)       (906 )
Prepaid expenses and other current assets     2,231       (2,260 )     (f)       (29 )
Accounts payable, accrued expenses, and other current liabilities     (4,930 )     1,162       (b), (e), (f)       (3,768 )
Other liabilities   815       5,543       (f)       6,358  
Deferred revenue     2,327       (5,824 )     (f)       (3,497 )
                                 
Total Adjustments     150,970       2,057               153,027  
                                 
Net Cash Used In Operating Activities     (47,162 )     (1,129 )             (48,291 )
                                 
Cash Flows From Investing Activities:                                
Proceeds from government grants     -       1,129       (f)       1,129  
                                 
Net Cash Provided By Investing Activities     4,148       1,129               5,277  

 

 

BLINK CHARGING CO.

 

Notes to Consolidated Financial Statements

(dollars in thousands, except for share and per share amounts)