Blink Charging Co (BLNK)

[Stock_Barber]

Another 2813 chargers vanish from CCGI's network:

Loss of Title of Assets

In conjunction with the acquisition of assets the Blink Network on October 16, 2013, we acquired approximately 4,300 chargers. All of the chargers were funded under a grant from United States Department of Energy (“DOE”). The contracts entered into by Ecotality (the owner of the Blink Network) generally stipulated that title to the chargers rested with Ecotality until such time as the DOE grant terminated (originally scheduled as December 31, 2013). As described in Note 9- Accrued U.S, Department of Energy Fee, the Company sought to novate the DOE grant (“grant”) to step in the shoes of Ecotality and fulfill its obligations and receive any remaining funds available under the terms of the grant. In the meantime, the Company sought to convert the old Ecotality contracts with the hosts into new contracts with the Company and among other things, gain ownership of the chargers. On August 8, 2014, the Company was apprised by the DOE that it would not novate the grant. The Company undertook the task of determining which hosts did not convert their contracts. Upon completion of the task, the Company had determined that 2,813 Level 2 chargers with a net book value of $1,276,749 at September 30, 2014 and 38 DCFC’s with a net book value of $314,366 were owned by their respective hosts. The Company recorded charge to operating expenses of $1,591,115 of net book value at September 30, 2014 pertaining to chargers whose title was lost as result of the DOE grant not being novated during the quarter ended September 30, 2014.