Blink Charging Co (BLNK)

[mikeymgd]

Something of concern here:

Pursuant to the second option and to the election by JMJ to receive convertible preferred stock instead of common stock as permitted by the Additional Agreement, the Company, on February 16, 2018 issued to JMJ shares of Series D Preferred Stock convertible into 3,847,756 shares of Common Stock, to reflect the full payment of all dollar amounts and share amounts owed in connection with the JMJ Financing. Because the Series D Preferred Stock is convertible into shares of our Common Stock, upon JMJ’s conversion of the Series D Preferred Stock into shares of our Common Stock, holders of our Common Stock will experience dilution.
 
On May 7, 2018, JMJ elected to convert 4,368 shares of Series D Convertible Preferred Stock into 1,400,000 shares of the Company’s common stock at a conversion price of $3.12 per share. The Company issued the shares on May 10, 2018.

This helps explain the increase in the OS over the last 4 weeks. It does show that JMJ still has the ability to convert another 2.4m shares (10% dilution).

I would expect to see this on the next quarter if the shares are not restricted upon conversion.

Also the 9m in cash cannot fund operations for more than 6 months based on cash burn rate:

F

or the three months ended March 31, 2018 and 2017, we used cash of $4,814,971 and $783,135, respectively, in operations. Our cash use for the three months ended March 31, 2018 was primarily attributable to our net income of $2,204,088, adjusted for net non-cash income in the aggregate amount of $3,173,205, and $3,845,854 of net cash used in changes in the levels of operating assets and liabilities. Our cash use for the three months ended March 31, 2017 was primarily attributable to our net loss of $3,097,732, adjusted for net non-cash expenses in the aggregate amount of $1,477,377, partially offset by $837,220 of net cash provided by changes in the levels of operating assets and

liabilities. 


2 more quarters like this and they will burn 9.6m in cash. Of course as long as they stop selling and growing, the cash burn rate will slow. Not really a sound plan so dilution will be the only way they remain solvent.