micromobility.com Inc. Quarterly Report Released - Here’s What You Should Know

micromobility.com, Inc.
Quarter Ended June 30, 2025 – Investor Summary

Key Financial Metrics

• Revenue (Continuing Operations): $476,000 for Q2 2025, up 20% from $398,000 in Q2 2024. For the six months ended June 30, 2025, revenue was $953,000, up 82% compared to $525,000 for the same period in 2024. All revenue from continuing operations is derived from IT services provided to a related party.
• Operating Loss: $541,000 in Q2 2025 (Q2 2024: $783,000). Six-month operating loss was $739,000 (H1 2024: $2.1 million).
• Net Loss: $1.73 million for Q2 2025 (Q2 2024: $1.55 million). For the six months ended June 30, 2025, net loss was $1.96 million, a marked improvement from $6.07 million for the same period in 2024.
• Cash and Cash Equivalents: $71,000 as of June 30, 2025 (December 31, 2024: $84,000).
• Stockholders’ Deficit: $(37.9) million as of June 30, 2025, deepening from $(33.2) million at December 31, 2024.
• Accumulated Deficit: $(245.2) million as of June 30, 2025.
• Total Financial Liabilities: $11.3 million from continuing operations and $15.5 million from discontinued operations as of June 30, 2025. The company is in default on several debts.
• Weighted Average Shares Outstanding: 92.2 million.

Liquidity and Indebtedness

• The company has minimal liquidity ($71,000 cash), with recurring operating losses and negative cash flows from operations ($390,000 net cash used in operations from continuing operations for H1 2025).
• Principal debt includes a $6.6 million secured convertible loan (related party), $415,000 third-party convertible note, and $3.85 million unsecured loans (third party). All financial liabilities are classified as current.
• As of June 30, 2025, the company is in default on multiple debt instruments, including the $6.6 million secured convertible loan, $318,000 promissory note, and $3.85 million in unsecured loans, as well as various bank loans in discontinued businesses.
• The company entered a Standby Equity Purchase Agreement (SEPA) in April 2025 but incurred a $500,000 SEPA transaction expense in Q2 2025.

Business Operations and Changes

• micromobility.com, Inc. transitioned from its historical mobility and media businesses (now discontinued) to focus on IT/software services, specifically servicing related parties.
• Discontinued operations (mobility and media) had a minimal impact in Q2 2025; $339,000 revenue for H1 2025 (H1 2024: $833,000) and net loss of $143,000 for the first half of 2025 (H1 2024: $1.1 million).
• The shift resulted in drastically lower payroll and G&A expenses, though the company continues to carry significant corporate and legal overhead.

Risks

• Significant Going Concern Doubt: The company has recurring losses, negative operating cash flows, and insufficient cash to meet its obligations, as clearly stated by management (“recurring operating losses and negative cash flows”, “plans to fund through debt and equity”, and “going concern basis”).
• Debt Defaults and Legal Exposure: As of June 30, 2025, the company is in default on several key debt instruments, including legal judgments (Supreme Court of the State of NY) and outstanding secured and unsecured loans. Defaults put the company at risk of enforced collections and asset seizures.
• Customer Concentration: 100% of continuing operations revenue is from a single related party, indicating high customer concentration risk and uncertainty in revenue stability.
• Material Weaknesses in Internal Controls: Management identified ineffective disclosure controls and procedures due to insufficiently designed accounting policies and lack of segregation of duties.
• Stockholder Dilution Risk: The company has agreements in place (2025 SEPA), and large quantities of convertible securities outstanding (74.8 million potentially dilutive shares), which could dilute existing stockholders.

Management Discussion & Outlook

• Revenue growth in continuing operations is attributed solely to increased scope in related-party IT services; the underlying business is not diversified.
• Cost controls improved, with G&A expenses reduced 24% year-over-year for Q2. Key driver: reduced professional fees after mobility and media discontinuation.
• Material reductions in non-operating expenses reflect fewer legal accruals and changes in debt structure, but the company must contend with high interest and SEPA-related expenses.
• Management plans to continue financing through debt and equity. However, all financial liabilities are current, and the company is actively in default, highlighting acute refinancing and liquidity risks.

Legal/Regulatory and Controls

• Multiple lawsuits and legal exposures remain unresolved; losses are not currently probable/estimable but present a contingent risk.
• Internal controls are assessed as ineffective.

Conclusion

micromobility.com, Inc. remains in a precarious financial position, with continued operating losses, significant defaults on outstanding debt, material weakness in controls, and a business limited to related-parties IT services revenue. Substantial improvement in financial results compared to 2024 is mainly a result of the business pivot and cost out from discontinued segments. Liquidity remains critically low, and the ability to continue as a going concern is dependent on new financing. Investors face high risks regarding recovery, further dilution, and long-term business model viability.

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