Micromobility.com Reports Significant Financial Changes, Suspends US Operations, and Records Net Income Turnaround

Micromobility.com Inc. (formerly Helbiz, Inc.) reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on intra-urban transportation through electric vehicle sharing, has indefinitely suspended its mobility operations in the United States due to high operational costs and a strategic shift to reduce cash burn.

For the three months ended September 30, 2024, Micromobility.com generated revenue of $775,000, a decrease of 37% from $1,225,000 in the same period of 2023. For the nine months, revenue fell by 79% to $1,536,000 from $7,256,000 year-over-year. The decline is attributed to the company's exit from unprofitable markets and the suspension of U.S. operations. European mobility revenues also saw a significant drop, with a 65% decrease in the third quarter compared to the previous year.

Operating expenses for the third quarter of 2024 totaled $1,359,000, down from $6,724,000 in 2023, reflecting the company's efforts to cut costs through staff reductions and renegotiated agreements. For the nine-month period, operating expenses decreased to $6,956,000 from $37,031,000. The net loss from continuing operations improved to $(1,658,000) for the third quarter, compared to $(7,456,000) in 2023, and $(6,536,000) for the nine months, down from $(37,433,000).

A notable development was the sale of 100% equity interest in Wheels Lab, Inc. on August 19, 2024, which contributed a gain of $7,596,000 from discontinued operations. This sale marked a strategic shift as the company focuses on its European operations and software development services.

Micromobility.com reported a net income of $4,974,000 for the third quarter of 2024, a significant turnaround from a net loss of $(9,477,000) in the same quarter of 2023. However, for the nine months, the company recorded a net loss of $(1,095,000), an improvement from $(63,249,000) in the prior year.

As of September 30, 2024, the company had total assets of $2,564,000, down from $7,032,000 at the end of 2023, and total liabilities of $46,248,000, a decrease from $50,834,000. The total stockholders’ deficit was $(43,684,000), slightly improved from $(43,802,000) at the end of 2023.

The company continues to face challenges, including a material weakness in internal controls over financial reporting and ongoing legal contingencies. It has also indicated a substantial need for additional cash to sustain operations, raising doubts about its ability to continue as a going concern within the next year.