Greetings ladies and gentlemen and welcome to Blink Charging Second Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] It is now my pleasure to introduce your host, Mr. John Nesbett of IMS Investor Relations. Thank you sir, you may begin.

Good afternoon everyone and welcome to Blink Charging's second quarter 2020 investor call. On the call today we have Michael Farkas, Blink Charging's Founder and CEO; Brendan Jones, Chief Operating Officer; and Michael Rama, Chief Financial Officer. I'd like to take a moment to read the Safe Harbor statement. This conference call contains forward-looking statements as defined within section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements and terms such as anticipate, expect, intend, may, will, should, or other comparable terms involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. These statements include statements regarding intent, belief, or current expectations of Blink and members of its management, as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those described in Blink's periodic reports filed with the SEC and actual results may differ materially from those contemplated by such forward-looking statements. Except as required by federal securities law, blink undertakes no obligation to update or revise forward-looking statements or reflects change conditions. Okay, I will now turn the call over to Michael Farkas. Go ahead Michael.

Good afternoon everyone. Thank you for joining us for an inaugural quarter of the earnings call. We are pleased to have this opportunity to review our results for the second quarter of 2020. Let me begin by saying that his is an incredibly exciting time in our industry. As many of you may know, Blink was founded in 2009. Since then we have been known as pioneers in electric vehicle charging technology. Some would say we were ahead of the curve. In fact, in many ways we still are. So although we have a lot to do, it is particularly gratifying to see the recent momentum in the EV industry. It is evident that EVs are better for the earth and the environment than their traditional internal engine counterparts and their adoption is a huge step forward in our stewardship of the planet. This is an important element of our business. But I also started the company because I've always been a car guy as well as an entrepreneur, and the opportunity to combine these pursuits was irresistible. I said the word car just after I said the word mom, my father never forgave me for it, and I've loved the evolution of the automobile and the electric cars and their increasingly effective [ph] performance since their inception. I knew that as EVs became more accessible to the general public, there would be a massive need for infrastructure to support the inevitable sea of change that would follow. I also saw a potentially amazing business. Historically, if you look at the transportation market, 99% of car manufacturers have gone bankrupt. It is the few who started the business where there is real growth and where companies have truly thrived and been very profitable. That is what we are building here…

Well, thank you, Michael. Good afternoon. It is a pleasure to speak with everyone today. As you might imagine, we have been very busy at Blink as demonstrated by many of the recent developments at the company. I'd like to take this time to review some of those highlights with you. And as we start, it's one of the key ways that we can scale our business is through the identification and the execution of our strategic partnerships. As such, Blink has entered into some very noteworthy relationships over the past few weeks and I am going to take some time here to go over those. We recently announced an exciting multiyear joint venture agreement with Envoy Technologies. Now Envoy is a leading provider of shared on demand community-based electric vehicles. And the venture brings electric vehicles and EV charging to urban residents across the United States. Now this is by deploying charging stations at every Envoy property location. Envoy's community-based electric vehicle mobility platform grew an astonishing 350% over the past two years and we think our charging technology will be a great complement to their operations. Additionally, we had another great announcement just recently as regards to Virginia Clean Cities Association. They have been a long-term partner of ours. Blink was awarded a grant to deploy 200 Blink IQ 200 19.2 kW charging stations across the mid-Atlantic region. Now this is an exciting initiative that brings together local and regional partners to create, we like the term an enduring regional ecosystem to promote the support and the use of electric vehicles through the build out of convenient EV charging stations and we are really proud to be part of that activity. And to add even more good news, we recently signed a partnership with Cushman & Wakefield, and…

Thank you, Brendan and good afternoon everyone. Blink had a great second quarter, particularly in light of the COVID-19 pandemic. I thought it would be helpful to provide you with a quick overview of our business model. One unique advantage of the Blink business model is that we provide multiple options for our customers. This flexibility is key in our ability to quickly expand our network. Blink offers four business models for EV charging equipment and connectivity to our cloud-based EV charging network. We work with our property partners to help design a program that fits their needs. I will give you an overview of each of these models. First, we have the Blink Owned Turnkey model, which is utilized in high traffic locations with significant potential for high utilization. In this model, Blink provides the equipment, installation, operations, and administration of EV charger and shares a portion of the charging revenue with the host. Next is our Blink Owned the Hybrid model, which is our most common business model and fits more EV charging station locations. The hybrid option allows the location to quickly provide the charging station to their customers in a cost efficient manner. Blink covers the cost of equipment, operations and administration, whereas the host location is responsible for making the site ready for electrical wiring. Charging revenue is shared under the hybrid model. Third is our Host Owned model, which is for those who want to be the owner/operator of EV charging stations. The host location is solely responsible for the costs associated with the deployment of EV charging stations. This includes the electrical wiring, cost of the equipment, annual network fees, and costs of maintenance and operations. In the Host Owned option, the host location receives the entirety of the charging revenue minus network…

Thank you. [Operator Instructions] Our first question comes from the line of Sameer Joshi with H.C. Wainwright. Please proceed with your question.

Hello, Michael, Mike, Brendan nice to talk to you. Thanks for taking my questions. Congratulations on a good quarter. The 662 units that you sold this quarter, under what model were they sold, where they sold as owned by the owner or was it one of the other models?

I will take that. This is Michael Rama, thanks for joining the call today. Those units were actually deployments between our turnkey and hybrid model units, that is exclusive of the any hardware sales that we did. Those are strictly deployments of new in the Blink owned services.

Okay, okay. The utilization, do you have any metrics on utilization of units that you have already installed? I think you have around 15,151 units deployed. Do you know how much they're being used by location?

Sameer, at this time we're not disclosing utilization numbers. We may do so in the future, but at this point we're not. It's a sensitive business information you know it's, we need to keep that close to heart at this point.

Understood, that's fair. As far as all these agreements that you have been signing, and actually good relationships with online [ph] and Cushman & Wakefield, do you have any, like in the next 6 to 12 to 24 months the scale of deployment, what are the revenues, number of units that you expect to deploy at these locations, and also with the Greek relationship?

To get into any specific numbers it would be somewhat difficult right now. All we could tell you is the business is growing at substantially the same rate as we've been growing before. Now with COVID, I would say being a little bit more under control, we should see even greater strides ahead of us.

One last one before I jump back in queue. The charging service revenue understandably was lower, I guess because of less people driving. But, going forward or rather in July, August, have you seen any revival in that? It was $87,000 for this quarter relative to roughly 340 to 320 average last year, last five quarters.

Michael?

Yes. In July, yes we've seen - we've definitely seen an uptick in the utilization and the charging stations, so it's just - it's supporting the people getting out starting to do things and so we expect that to continue as we work through the pandemic. And the issues are related to it, but we're definitely starting to see an uptick in the utilization in the charging stations.

Got it. Thanks for taking my questions and congratulations on a good quarter. Thanks.

Thank you.

Thank you.

Thank you.

Thank you. Our next question comes from the line of Shawn Severson with Water Tower Research. Please proceed with your questions.

Thanks, good afternoon, gentlemen. I had a question regarding the international side of the business and wanted to dig into that a little deeper. One, kind of help us understand what the mix is today and do you have a target or longer term target? And then second, to that which of the four models seems to be most successful. Do you anticipate to be more successful International and are there any energy services opportunities on the back of some of those bad grid locations where you might be deploying units and managing units?

In most of our international deployments, we're selling hardware and we have a recurring revenue model. In our Greek relationship we participate in the deployment of those hardware with ongoing revenue participation. So it is not just the hardware sale. We're trying to model our business outside the U.S. similar to the way we do so in the U.S. and we want to make sure that we provide our customers with a solution that's right for them. If you look at our current deployments and due to the fact that we have amazing hardware and by far surpasses any of our competitors, we are seeing a big uptake as you can see from the numbers of the hardware sales, and we expect that to continue. We do want to focus our efforts on deploying as much hardware as possible on using our own capital. And we are looking for ways to deploy hardware without having to dilute our current shareholders.

I guess that's a good lead into my next question that's regarding the services versus hardware, long-term service, business is very attractive from cash flow and usually consistency as well. I mean, how does it work when you approach say a new customer? Are they getting the sense that, they were trying to keep more of that services revenue or do you think there's a real value proposition that you can pitch to them that they, that you both make a lot of money and do well, with the services side? I'm just trying to understand if they're getting the mindset, we want to capture this ourselves or whether you're able to continue pushing a higher value proposition.

Well, what we try to do is, give the customer what they want. Property owners have their own models. Some of them want to own all infrastructure in their locations, that's their model, others don't. They outsource all different services. What we try to do instead of pushing what we want to give the customer, we really look and evaluate what the customer is currently doing and all the other types of deployments and then we try to fit it in accordingly.

Okay, so last one, just on the acquisition strategy. I mean, can you give us an idea what the pipeline you see out there? I assume there is a lot of highly fragmented market and a lot of - lot of opportunities, but I mean, are you looking at a pipeline of 10 deals or two deals or 20 deals that you would be interested out there from a consolidation standpoint?

As mentioned earlier, we were the original consolidator, the first phase of consolidation done in this space on the Blink is six companies in Austin. We believe that there's a tremendous future in not only organic growth as we've been achieving, but really being able to buy some of our competitors. There's more than a couple of handful of really good potential acquisition targets out there and we're constantly looking for the right partners from the perspective of technology, footprint number one, and also very important people. There are a lot of small businesses in this industry, unfortunately, who really can't finance their growth properly. One of the things I mentioned before was about having grants for smaller companies, minority businesses that are able to get these grants, but unfortunately, they don't have the capital to put down wait 90 days and then get reimbursed. So we're going to be able to take advantage of a lot of opportunities out there. And the team is very, very experienced in M&A. And I believe that as in the past, we grew through acquisitions. I believe that is a central focus of ours.

Thanks, guys. I’ll step back in the queue.

Thank you. Our next question comes from the line of Pam Stanley [Ph] with Carter Management. Please proceed with your question.

Hi, congratulations on the quarter first. My question is about the Cushman & Wakefield deal. It's certainly very exciting, but could you provide a bit more insight into how you are collaborating with them and what the breadth of the opportunity is?

The opportunity is tremendous. For us, Cushman is really a very natural partner. They have control over a tremendous amount of real estate that needs infrastructure. They're going to be using their sales staff to go to all of their properties and whatever type of property is across the board from A to Z and they are going to sell the Blink services for us. There are also going to be opportunities for them to handle from A to Z, not only site acquisition, but fulfillment and deployment of infrastructure. Cushman has tremendous reach. They have a lot of capabilities and we believe that it's going to be a game changer for the company.

Great, okay, thank you. That's, that's all from me now.

Thank you. Our next question comes from the line of Jennifer Wolford with Comstock Partners. Please proceed with your questions.

Hi, good afternoon. You guys, you're obviously in a competitive space and I'm just wondering if you could give us a little a little more color around the competitive landscape? And, kind of specifically what differentiates the Blink model from some of the competitors you're seeing out there?

I actually, I'm very happy you asked that question. It's a really important question because Blink is quite unique. When we talk about competition, yes, there are competitors, but there are none that are as vertically integrated as we are. And there are three different categories of EV charging companies; hardware vendors, hardware manufacturers, network companies, and owned and operate companies. And on the hardware side, you have the likes of BTC and Tritium and ABB and then you have network companies like Greenlots, which is now owned by Shell or Drives. And many other companies that provide both, like ChargePoint, SemaConnect and a couple of others. And then you have the owned and operate companies, Electrify America, EVgo. But we're the only one who does everything and there is a certain thing that you gain, certain knowledge experience that you have from site acquisition to host property and point of relationships, dealing with them all the information and data they need. Going out there and evaluating the site's themselves, doing the installations, maintaining and operating those charging stations and ultimately dealing with the customer who pays you for the service, the EV owner. That knowledge and that information that we've gathered from that stage of EV charging, we are able to incorporate into our hardware. And what we've done in our Level 2 AC charging stations has really changed the game. Our charging stations are much, much faster than our competitors. And while they try to build in obsolescence, we try to build out obsolescence. Why? Because we own the charging stations. So we make them a little bit better, we sweat a little bit more because we want them to last longer, because that's our model, our competitors really wanting to have to upgrade them, throw them in…

Well, think that's I mean so comprehensive. I really appreciate all that that detail. Thank you.

You’re welcome.

Thank you. Our next question is a follow-up from Shawn Severson with Water Tower Research. Please proceed with your question.

Hi, I just want to go back to your kind of the expansion of the overall industry and kind of the pressure that that would put, of course on the grid as it stands today, which takes me to your energy services business. And I'm just trying to understand what the opportunity is for you, understand using partners through that, but, looking at micro grids and EEG as primary solutions for a lot of the upcoming strain that will be on the grid, just kind of get in your, your view on that and how that affects Blink and how you can profit from it actually?

It's a great question. When we started Blink, we really looked at the company as getting access to different properties, and we really viewed it as a land grab. And when we first started, there really wasn't even charging stations that were available to install. We really predated the industry completely, but we ultimately knew that once we partner with the property owner and we had charging stations there, we built a relationship with them, that we'd be able to introduce other products or services at those locations that has to do with EV charging. And whether that's being able to get renewable energy at that location or discounted power, or in order to deal with capacity issues, maybe recommended a LED conversion or some battery storage. There are a lot of opportunities to work with the sustainability groups that we deal with at these locations and introduce other services and at the same time, make money doing so. And our plan is to be able to assist our property owner/partners that we have thousands of and being able to aggregate our energy volume along with them and be able to help them reduce their cost of energy. It helps us and it gives our customers the ability of having a cheaper EV charging session. So there are a lot of ways for us to monetize our locations. There are also opportunities that we haven't really dealt with in the past that we're now going to incorporate into our business model, which is we have a lot of real estate on our charging stations. There are many, many opportunities to be able to make money off of it even more so that we're making other charging stations utilizing, advertising, capabilities on these charging stations. They're very noticeable. So we are looking to unlock our relationships with our property owners, and have them participate in the revenues that we're going to generate and increase Blink’s revenue base by introducing other types of services that we can use to our charging stations.

Thanks, that was all for Michael.

Thank you. Ladies and gentlemen, at this time, I would like to turn the floor back to management for closing comments.

Thank you everyone for joining us. We are very excited about the increasing interest in our EV charging offering, our extended footprint, growing of our customer base and our new partnerships and we look forward to speaking with you again next quarter. Thank you everybody.

Thank you. Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.