Tue, May 20, 8:19 PM (31 days ago)
**Micromobility.com, Inc. (MCOM) Q1 2025 Financial Summary** Micromobility.com, Inc. (MCOM) reported its Q1 2025 financial results, highlighting a shift in business focus and ongoing financial challenges. The company transitioned from micromobility and media services to IT software services in 2024, with a significant portion of its revenue now derived from a related-party agreement with Everli S.p.A. **Key Financial Metrics:** - **Revenue:** Q1 2025 revenue from continuing operations was $477,000, a 276% increase from $127,000 in Q1 2024. This revenue is solely from IT services provided to Everli S.p.A. - **Profit Margins:** The company reported a net loss from continuing operations of $378,000, an improvement from a net loss of $3,410,000 in Q1 2024. However, the gross margin remains negative due to high operating expenses. - **Cash Flow:** The company used $150,000 in cash from operating activities, an improvement from $775,000 in Q1 2024. Financing activities provided $1,524,000, primarily from related-party transactions. - **Earnings Changes:** The net loss per share from continuing operations was $0.00, compared to $0.13 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** The significant increase in revenue is attributed to the IT services agreement with Everli S.p.A., which began in February 2024. - **Cost Reduction:** The company has reduced general and administrative expenses by 71%, primarily through workforce reductions and cost-cutting measures. - **Liquidity:** As of March 31, 2025, the company had $100,000 in cash and cash equivalents. The company entered into a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd., providing access to up to $25 million in financing. - **Debt and Defaults:** The company is in default on several financial obligations, including a secured convertible loan, promissory notes, and unsecured loans. The company is evaluating alternatives to address these defaults. **Trends and Uncertainties:** - **Business Transition:** The shift to IT software services is ongoing, with the company focusing on software development for Everli S.p.A. - **Financial Uncertainties:** The company faces significant financial uncertainties, including ongoing defaults and the need for additional financing. - **Legal Proceedings:** The company is involved in legal proceedings related to unsecured notes and is evaluating the impact of these proceedings on its financial condition. **Future Operations Impact:** - **Financing:** The company plans to continue funding operations through debt and equity financing, including the SEPA agreement. - **Cost Management:** The company will focus on managing costs and improving operational efficiency to support its transition to profitable operations. - **Legal and Financial Risks:** The company will need to address ongoing legal and financial risks, including defaults and potential litigation, to ensure its long-term viability.