micromobility.com Inc. SEC 10-K Report

Micromobility.com Inc., formerly focused on micromobility and media services, has released its 2024 10-K report, detailing a significant strategic shift to IT software services. The report highlights the company's financial performance, operational changes, strategic initiatives, and the challenges it faces in this transition.

Financial Highlights

• Total Revenue: $1.422 million, primarily from a service agreement with Everli S.p.A. following the shift to IT software services.
• Loss from Operations: $(2.303) million, reflecting a reduction in operating expenses due to the exit from mobility and media operations.
• Net Income (Loss) from Continuing Operations: $(2.364) million, an improvement from the previous year's loss due to cost reductions and strategic shifts.
• Net Income (Loss) from Discontinued Operations: $10.512 million, resulting from the sale of Wheels and the exit from European operations.
• Net Income (Loss): $8.148 million, a turnaround from the previous year's loss, driven by gains from discontinued operations.
• Net Income (Loss) Per Share: $0.12, reflecting the overall net income improvement and strategic business shifts.

Business Highlights

• Business Focus Shift: In 2024, the company shifted its core business from micromobility and media services to IT software services, focusing on software development and advisory services.
• Geographical Performance: The company exited mobility operations in both the United States and Europe due to high costs and strategic realignment, indicating a significant shift in geographical focus.
• Revenue Segments: The company generated revenue from software development services provided to Everli S.p.A., a related party, marking a new revenue stream in IT services.
• Discontinued Operations: The company decided to exit its mobility and media operations in the United States and Europe, selling off related assets and subsidiaries to reduce operational cash burn.
• Future Outlook: The company plans to continue funding its operations through debt and equity financing, with a focus on expanding its IT services business line.

Strategic Initiatives

• Strategic Shift: In 2024, micromobility.com, Inc. shifted its core business from micromobility and media services to IT software services, entering into a service agreement with Everli S.p.A. to provide software development services.
• Exit from Mobility and Media Operations: The company exited its mobility and media operations in the U.S. and Europe due to high costs and cash burn, selling its U.S. mobility business, Wheels Lab, Inc., and entering into a Stock Purchase Agreement to sell its European entities to Palella Holdings LLC.
• Capital Management: The company financed its operations primarily through outside sources of invested capital, including debt and equity financing. In 2024, micromobility.com issued common shares for the conversion of related-party promissory notes and settled financial liabilities. The company also entered into a Secured Loan Agreement with YA II PN, Ltd., which was later sold to Palella Holdings LLC. Additionally, the company faced defaults on certain unsecured loans and is negotiating repayment plans.
• Future Outlook: Micromobility.com plans to continue funding its operations through debt and equity financing over the next twelve months. The company is exploring new repayment plans for its outstanding debts and is focused on achieving a level of revenues adequate to support its cost structure. The strategic shift to IT software services is expected to drive future growth, while the company continues to manage its financial liabilities and explore capital management strategies.

Challenges and Risks

• Business Transition Risks: The transition to IT software services involves risks related to the successful commercialization of its technology platform and reliance on a single client, Everli, S.p.A., which is a related party controlled by the majority shareholder.
• Operational Exits: The company has exited its mobility operations in the United States and Europe due to high costs and inability to raise additional capital, which may impact its revenue streams and market presence.
• Financial Challenges: The company faces significant financial challenges, including a shift in business focus, high operating costs, and a need for additional capital to sustain operations. The company is in default on certain loans and is involved in legal proceedings that could impact its financial condition.
• Market Risks: The company is exposed to market risks related to its financial liabilities and the need for additional financing. The default on loans and the legal judgment against the company further exacerbate these risks, potentially affecting its ability to operate and expand its business.

SEC Filing: micromobility.com Inc. [ MCOM ] - 10-K - Apr. 15, 2025