10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

or

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from____________to____________

Commission file number: 333-253073

CHARGE ENTERPRISES, INC.

(Exact name of registrant as specified in its charter)

Delaware	90-0471969
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
125 Park Avenue, 25th Floor New York, NY	10017
(Address of principal executive offices)	(Zip Code)

(212) 921-2100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Ticker symbol	Name of each exchange on which registered
Common Stock, par value $.0001 per share	CRGE	Nasdaq Global Market

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐   No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of October 31, 2023, a total of 215,039,868 shares of common stock, par value $0.0001 per share, were issued and outstanding.

CHARGE ENTERPRISES, INC.

TABLE OF CONTENTS

Part I – Financial Information			Page
	Item 1	Financial Statements	4
	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	45
	Item 4	Controls and Procedures	46
Part II – Other Information
	Item 1	Legal Proceedings	48
	Item 1A	Risk Factors	48
	Item 2	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	50
	Item 3	Defaults Upon Senior Securities	50
	Item 4	Mine Safety Disclosures	50
	Item 5	Other Information	50
	Item 6	Exhibits	51
		Signatures	53

2

Special Note Regarding Forward-Looking Statements

You should read this Quarterly Report on Form 10-Q, our Current Report on Form 8-K filed May 10, 2023 (our “May 10, 2023 Form 8-K”) and our Annual Report on Form 10-K for the year ending December 31, 2022 (our “2022 Form 10-K”) completely and with the understanding that our actual future results, levels of activity, performance and achievements may be different from what we expect and that these differences may be material. We qualify all of our forward-looking statements by these cautionary statements.

Certain statements contained in this Form 10-Q, which reflect our current views with respect to future events and financial performance, and any other statements of a future or forward-looking nature, constitute “forward-looking statements” for the purpose of the federal securities laws. Our forward-looking statements include, but are not limited to, statements regarding our or our management’s expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These statements relate to future events, our future operational or financial performance or future liquidity, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that may cause actual results to differ materially from current expectations include, among other things, include the ability to achieve the expected benefits of the Greenspeed acquisition, including the risks that the Company’s synergy estimates are inaccurate or that the Company faces higher than anticipated integration or other costs in connection with the acquisition, the business plans and strategies of Charge, Charge’s ability to satisfy its debt payment obligations or extend the maturity or refinance outstanding debt at or prior to maturity, Charge’s future business development, market acceptance of electric vehicles and continued auto maker investment in electric vehicles, the success of Charge’s retail dealership initiative and the size, scope and success of the related initial installation projects, Charge’s ability to generate profits and positive cash flow, changes in government regulations and government incentives, subsidies, or other favorable government policies, rising interest rates, macroeconomic and geopolitical conditions, and the ongoing automotive industry labor dispute and the impact on investments by our customers, as well as those listed under the section titled “Risk Factors”. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements.

Any forward-looking statement in this Form 10-Q reflects our current view with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our business, results of operations, industry, and future growth. Given these uncertainties, you should not place undue reliance on these forward-looking statements. No forward-looking statement is a guarantee of future performance. You should read this Form 10-Q in conjunction with our May 10, 2023 Form 8-K, our 2022 Form 10-K, and the documents that we reference herein and therein and have filed as exhibits hereto and thereto completely and with the understanding that our actual future results may be materially different from any future results expressed or implied by these forward-looking statements. Except as required by law, we assume no obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

This Quarterly Report on Form 10-Q also contains or may contain estimates, projections and other information concerning our industry, our business, and the markets for our products, including data regarding the estimated size of those markets and their projected growth rates. We obtained the industry and market data in this report from our own research as well as from industry and general publications, surveys and studies conducted by third parties. This data involves a number of assumptions and limitations and contains projections and estimates of the future performance of the industries in which we operate that are subject to a high degree of uncertainty, including those discussed in “Risk Factors.” We caution you not to give undue weight to such projections, assumptions, and estimates. Further, industry and general publications, studies and surveys generally state that they have been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. While we believe that these publications, studies, and surveys are reliable, we have not independently verified the data contained in them. In addition, while we believe that the results and estimates from our internal research are reliable, such results and estimates have not been verified by any independent source.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this report, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely upon these statements as predictions of future results. Our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

3

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

Charge Enterprises, Inc.

Consolidated Balance Sheets

(Unaudited)

In thousands, except share and per share data	September 30, 2023			December 31, 2022 (As Adjusted)
Assets
Current assets
Cash and cash equivalents	$	51,359		$	26,837
Restricted cash		886			886
Accounts receivable net of allowances of $68 in 2023 and $322 in 2022		55,768			72,405
Inventory		317			111
Deposits, prepaids and other current assets		3,430			3,187
Investments in marketable securities		5,868			6,757
Investments in non-marketable securities		279			236
Contract assets		8,128			6,090
Total current assets		126,035			116,509
Property, plant and equipment, net		485			732
Finance lease right-of-use assets		888			341
Operating lease right-of-use assets		3,123			4,028
Non-current assets		248			240
Goodwill		25,906			12,672
Intangible assets, net		30,832			33,932
Total Assets		187,517			168,454
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	73,105		$	61,644
Accrued liabilities		7,922			11,121
Contract liabilities		25,201			13,741
Derivative liability		2			6,521
Finance lease liabilities		242			112
Operating lease liabilities		1,183			1,579
Current portion of long-term debt		27,126			29,180
Total current liabilities		134,781			123,898
Non-current liabilities
Finance lease liabilities, non-current		530			146
Operating lease liabilities, non-current		1,808			2,199
Contingent consideration liability		5,758			-
Net deferred tax liability		1,072			1,410
Total Liabilities		143,949			127,653
Mezzanine Equity
Series C preferred stock (6,226,370 shares issued and outstanding at September 30, 2023, and December 31, 2022)		19,458			16,572
Total Mezzanine Equity		19,458			16,572
Commitments, contingencies and concentration risk
Stockholders' Equity
Preferred stock, $0.0001 par value, 20,000,000 shares authorized;
Series D: 1,177,023 shares issued and outstanding at September 30, 2023, and December 31, 2022		-			-
Series E: 3,200,000 shares issued and outstanding at September 30, 2023, and 0 shares outstanding at December 31, 2022		-			-
Common stock, $0.0001 par value; 750,000,000 shares authorized, 215,039,868 and 206,844,580 issued and outstanding at September 30, 2023 and December 31, 2022, respectively		21			20
Additional paid in capital		208,564			179,723
Accumulated deficit		(184,475	)		(155,514	)
Total Stockholders' Equity		24,110			24,229
Total Liabilities and Stockholders' Equity	$	187,517		$	168,454

The accompanying notes are an integral part of these consolidated financial statements.

4

Charge Enterprises, Inc.

Consolidated Statement of Operations

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
In thousands, except per share data	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Revenues	$	132,277		$	185,857		$	473,412		$	529,876
Cost of sales		123,255			179,760			450,353			512,143
Gross profit		9,022			6,097			23,059			17,733
Operating expenses
General and administrative		4,315			5,141			14,854			17,200
Salaries and related benefits		8,890			7,850			27,173			23,597
Professional fees		1,006			666			1,918			2,578
Depreciation and amortization expense		1,172			433			3,574			1,745
Total operating expenses		15,383			14,090			47,519			45,120
(Loss) from operations		(6,361	)		(7,993	)		(24,460	)		(27,387	)
Other income (expenses):
Income (loss) from investments, net		675			(200	)		1,637			(1,343	)
Change in fair value of derivative liabilities		57			28,669			1,713			28,669
Interest expense		(1,489	)		(1,015	)		(4,515	)		(9,939	)
Loss on impairment		(56	)		-			(114	)		-
Other income (expense), net		848			(3,289	)		1,876			(2,255	)
Foreign exchange gain (loss)		116			1			(53	)		(86	)
Total other income (expenses), net		151			24,166			544			15,046
Income (loss) before income taxes		(6,210	)		16,173			(23,916	)		(12,341	)
Income tax (expense) benefit		(741	)		8			(1,093	)		1,336
Net income (loss)	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)
Less: Deemed dividend		(2,885	)		-			(2,885	)		(36,697	)
Less: Preferred dividends		(362	)		(302	)		(1,086	)		(922	)
Net income (loss) available to common stockholders	$	(10,198	)	$	15,879		$	(28,980	)	$	(48,624	)
Basic income (loss) per share available to common stockholders	$	(0.05	)	$	0.07		$	(0.14	)	$	(0.25	)
Diluted income (loss) per share available to common stockholders	$	(0.05	)	$	0.06		$	(0.14	)	$	(0.25	)
Weighted average number of shares outstanding, basic		214,273			206,225			211,423			196,126
Weighted average number of shares outstanding, diluted		214,273			231,388			211,423			196,126

The accompanying notes are an integral part of these consolidated financial statements.

5

Charge Enterprises, Inc.

Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

	Three Months Ended September 30,					Nine Months Ended September 30,
In thousands	2023			2022 (As Adjusted)		2023			2022 (As Adjusted)
Net income (loss)	$	(6,951	)	$	16,181	$	(25,009	)	$	(11,005	)
Other comprehensive income (loss), net of tax
Components of comprehensive income (loss)		-			-		-			-
Other comprehensive income (loss), net of tax		-			-		-			-
Comprehensive income (loss)	$	(6,951	)	$	16,181	$	(25,009	)	$	(11,005	)

The accompanying notes are an integral part of these consolidated financial statements.

6

Charge Enterprises, Inc.

Consolidated Statements of Stockholders' Equity

(Unaudited)

	Preferred Stock					Common Stock				Common Stock to be Issued						Additional Paid-In Capital (As			Accumulated Other Comprehensive			Accumulated Deficit (As			Total (As
In thousands, except share data	Shares			Amount		Shares		Amount		Shares			Amount			Adjusted)			Income			Adjusted)			Adjusted)
Balance, December 31, 2021 (As Adjusted)		2,370,370		$	-		184,266,934	$	18		6,587,897		$	1		$	117,727		$	(32	)	$	(103,366	)	$	14,348
Modified retrospective application of stock-based compensation accounting as of January 1, 2022		-			-		-		-		-			-			(3,320	)		-			3,115			(205	)
Stock-based compensation expense		-			-		-		-		-			-			10,744			-			-			10,744
Declaration of preferred dividends		-			-		-		-		-			-			-			-			(267	)		(267	)
Series C preferred stock		3,856,000			-		-		-		-			-			12,050			-			-			12,050
Beneficial conversion feature arising from preferred stock		-			-		-		-		-			-			2,651			-			-			2,651
Deemed dividend in connection with Series C preferred stock		-			-		-		-		-			-			-			-			(3,856	)		(3,856	)
Common stock issued for acquisition		-			-		5,201,863		1		-			-			17,530			-			-			17,531
Conversion of debt into common stock		-			-		319,950		-		-			-			80			-			-			80
Net loss		-			-		-		-		-			-			-			-			(13,141	)		(13,141	)
Balance, March 31, 2022 (As Adjusted)		6,226,370		$	-		189,788,747	$	19		6,587,897		$	1		$	157,462		$	(32	)	$	(117,515	)	$	39,935
Stock-based compensation expense		-			-		-		-		-			-			9,343			-			-			9,343
Declaration of preferred dividends		-			-		-		-		-			-			-			-			(353	)		(353	)
Series D preferred stock		1,177,023			-		-		-		-			-			12,499			-			-			12,499
Common stock issued for private placement		-			-		1,428,575		-		-			-			4,696			-			-			4,696
Issuance of warrants for private placement		-			-		-		-		-			-			5,304			-			-			5,304
Issuance of shares committed in prior period		-			-		1,862,146		-		(1,862,146	)		-			-			-			-			-
Settlement of holdback shares for acquisition		-			-		4,725,748		-		(4,725,748	)		(1	)		-			-			-			(1	)
Exercise of warrants		-			-		5,973,515		1		-			-			1,072			-			-			1,073
Exercise of stock options		-			-		10,000		-		-			-			20			-			-			20
Vesting of restricted stock units		-			-		138,327		-		-			-			-			-			-			-
Conversion of Series B Preferred into common stock		-			-		2,155,594		-		-			-			6,165			-			-			6,165
Classification of Preferred C to Mezzanine Equity		(6,226,370	)		-		-		-		-			-			(18,940	)		-			6,256			(12,684	)
Deemed dividend in connection with reclass of warrants to Derivative liability		-			-		-		-		-			-			(7,601	)		-			(32,841	)		(40,442	)
Other		-			-		-		-		(3	)		-			-			-			-			-
Net loss		-			-		-		-		-			-			-			-			(19,642	)		(19,642	)
Modified retrospective application of stock-based compensation accounting		-			-		-		-		-			-			(2,538	)		-			2,482			(56	)
Balance, June 30, 2022 (As Adjusted)		1,177,023		$	-		206,082,652	$	20		-		$	-		$	167,482		$	(32	)	$	(161,613	)	$	5,857
Stock-based compensation expense		-			-		-		-		-			-			7,825			-			-			7,825
Restricted stock units expense		-			-		-		-		-			-			23			-			-			23
Exercise of warrants		-			-		137,803		-		-			-			50			-			-			50
Exercise of stock options		-			-		261,959		-		-			-			144			-			-			144
Declaration of dividends		-			-		-		-		-			-			-			-			(302	)		(302	)
Other		-			-		-		-		-			-			-			-			(58	)		(58	)
Net income (loss)		-			-		-		-		-			-			-			32			14,375			14,407
Modified retrospective application of stock-based compensation accounting		-			-		-		-		-			-			(1,981	)		-			1,806			(175	)
Balance, September 30, 2022 (As Adjusted)		1,177,023		$	-		206,482,414	$	20		-		$	-		$	173,543		$	-		$	(145,792	)	$	27,771

The accompanying notes are an integral part of these consolidated financial statements.

7

Charge Enterprises, Inc.

Consolidated Statements of Stockholders' Equity

(Unaudited)

	Preferred Stock				Common Stock					Common Stock to be Issued				Additional Paid-In			Accumulated Other Comprehensive		Accumulated
In thousands, except share data	Shares		Amount		Shares			Amount		Shares		Amount		Capital			Income		Deficit			Total
Balance, December 31, 2022 (As Adjusted)		1,177,023	$	-		206,844,580		$	20		-	$	-	$	179,723		$	-	$	(155,514	)	$	24,229
Stock-based compensation expense		-		-		(444	)		-		-		-		5,902			-		-			5,902
Declaration of preferred dividends		-		-		-			-		-		-		-			-		(362	)		(362	)
Exercise of warrants		3,200,000		-		4,400,000			1		-		-		3,799			-		-			3,800
Derivative liability impact to exercise of warrants		-		-		-			-		-		-		4,806			-		-			4,806
Exercise of stock options		-		-		75,000			-		-		-		43			-		-			43
Common stock issued for acquisition		-		-		1,530,145			-		-		-		2,752			-		-			2,752
Net loss		-		-		-			-		-		-		-			-		(9,212	)		(9,212	)
Balance, March 31, 2023		4,377,023	$	-		212,849,281		$	21		-	$	-	$	197,025		$	-	$	(165,088	)	$	31,958
Stock-based compensation expense		-		-		50,000			-		-		-		4,964			-		-			4,964
Declaration of preferred dividends		-		-		-			-		-		-		-			-		(362	)		(362	)
Other		-		-		-			-		-		-		-			-		19			19
Net loss		-		-		-			-		-		-		-			-		(8,846	)		(8,846	)
Balance, June 30, 2023		4,377,023	$	-		212,899,281		$	21		-	$	-	$	201,989		$	-	$	(174,277	)	$	27,733
Stock-based compensation expense		-		-		-			-		-		-		4,583			-		-			4,583
Restricted stock units vesting		-		-		55,323			-		-		-		(8	)		-		-			(8	)
Declaration of preferred dividends		-		-		-			-		-		-		-			-		(362	)		(362	)
Series C preferred deemed dividend		-		-		-			-		-		-		-			-		(2,885	)		(2,885	)
Common stock issued for acquisition		-		-		2,085,264			-		-		-		2,000			-		-			2,000
Net loss		-		-		-			-		-		-		-			-		(6,951	)		(6,951	)
Balance, September 30, 2023		4,377,023	$	-		215,039,868		$	21		-	$	-	$	208,564		$	-	$	(184,475	)	$	24,110

The accompanying notes are an integral part of these consolidated financial statements.

8

Charge Enterprises, Inc.

Consolidated Statement of Cash Flows

(Unaudited)

	Nine Months Ended September 30,
	2023			2022 (As Adjusted)
In thousands
Cash flows from Operating Activities:
Net loss	$	(25,009	)	$	(11,005	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization		3,100			1,060
Depreciation		474			685
Stock-based compensation		15,449			20,514
Change in fair value of derivative liabilities		(1,713	)		(28,669	)
Amortization of debt discount		2,970			7,938
Loss on foreign currency exchange		53			86
Loss on impairment		114			-
Net loss (gain) from investments		(1,637	)		1,343
Other expense, net		(1,308	)		2,287
Change in deferred income taxes		(316	)		(1,338	)
Changes in working capital requirements:
Accounts receivable		17,934			(1,900	)
Inventory		(1	)		(73	)
Deposits, prepaids and other current assets		(1,007	)		(1,761	)
Other assets / liabilities		195			(43	)
Contract assets		(1,294	)		(3,041	)
Accounts payable		11,277			10,148
Other current liabilities		229			(1,196	)
Contract liabilities		7,719			2,048
Net cash provided by (used in) operating activities		27,229			(2,917	)
Cash flows from Investing Activities:
Acquisition of property, plant and equipment		(143	)		(205	)
Sale of intellectual property		1,308			179
Purchase of marketable securities		(27,766	)		(45,430	)
Sale of marketable securities		30,210			47,429
Acquisition of ANS		-			(363	)
Acquisition of EV Depot		1			(1,231	)
Acquisition of Greenspeed		(5,289	)		-
Cash acquired in acquisitions		1,845			105
Net cash provided by investing activities		166			484
Cash flows from Financing Activities:
Proceeds from sale of common stock		-			10,000
Proceeds from sale of Series C preferred stock		-			10,845
Proceeds from sale of Series E preferred stock		1,600			-
Proceeds from exercise of warrants		2,200			1,122
Proceeds from exercise of stock options		41			164
Draws from revolving line of credit		4,717			18,802
Payments on revolving line of credit		(9,741	)		(18,548	)
Tax withholding payments for vested stock-based compensation		(9	)		(418	)
Payment on financing lease		(252	)		(78	)
Payment of dividends on preferred stock		(1,086	)		(818	)
Redemption of Series B preferred stock		-			(685	)
Net cash (used in) provided by financing activities		(2,530	)		20,386
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash		(343	)		45
Net Increase in Cash and Cash Equivalents		24,522			17,998
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period		27,723			18,238
Cash, Cash Equivalents, and Restricted Cash, End of Period	$	52,245		$	36,236
Cash paid for interest expense	$	1,454		$	2,138
Cash paid for income taxes	$	1,538		$	485
Non-cash investing and financing activities:
Issuance of common stock for acquisition	$	2,000		$	17,530

The accompanying notes are an integral part of these consolidated financial statements.

9

CHARGE ENTERPRISES, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1. Nature of operations

Charge Enterprises, Inc. (the “Company”), (formerly known as “Transworld Holdings, Inc.”, “GoIP Global, Inc.” and “E Education Network, Inc.”) was incorporated in Nevada in 2003. The Company was subsequently redomiciled in Delaware.

The Company is an electrical, broadband and electric vehicle (“EV”) charging infrastructure company that provides clients with end-to-end project management services, from advising, designing, engineering, acquiring and installing equipment, to monitoring, servicing, and maintenance. The Company’s vision is to be a leader in enabling the next wave of transportation and connectivity. By building, designing, and operating seamless infrastructure for charging EVs and high-speed broadband, the Company aims to create a future where transportation is safe, reliable, clean, efficient, and connected.

The Company has two operating segments which also represent the Company’s reportable segments:

• Infrastructure, which has a primary focus on EV charging (“EVC”), broadband, including cell tower, small cell, and in-building applications, and electrical contracting services.

• Telecommunications, which provides connection of voice calls, Short Message Services (“SMS”), and data to global carriers.

Note 2. Summary of significant accounting policies

Basis of Presentation

The interim unaudited consolidated financial statements included herein have been prepared by the Company in accordance with: (i) generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information; and (ii) the instructions of the Securities and Exchange Commission (the “SEC”) for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments considered necessary for a fair statement of the results of operations and financial position for the interim periods presented. All such adjustments are of a normal and recurring nature. The Company’s results shown on an interim basis are not necessarily indicative of results for a full year.

This Form 10-Q should be read in conjunction with the current report on Form 8-K filed with the SEC on May 10, 2023 (the “May 10, 2023 Form 8-K”) and the consolidated financial statements and related notes included in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2022, and filed with the SEC on March 15, 2023, as part of the Company’s Annual Report on Form 10-K (the "2022 Annual Report"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.

There have been no material changes from Note 2, Summary of significant accounting policies, as described in the notes to the Company’s consolidated financial statements contained in the May 10, 2023 Form 8-K and the 2022 Annual Report, other than as noted below.

The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and the Company has and intends to continue to take advantage of certain exemptions from various reporting requirements.

10

 

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and related disclosures, presented in U.S. dollars, have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC. The results and trends in these consolidated financial statements may not be representative for any future periods or the full year.

Revenue

Nature of Services

Infrastructure

The Company’s Infrastructure segment revenues are derived from: (i) broadband and wireless; (ii) electrical contracting services; (iii) electric vehicle charging infrastructure; and (iv) fleet services.

Broadband and wireless, electrical contracting, and electric vehicle charging infrastructure primarily involve design, engineering and construction services. Types of services typically include providing: (i) end-to-end network design and implementation services for telecommunication and wireless carriers, cable companies and enterprise organizations; (ii) cell tower construction and modification services for national and regional wireless service providers, tower owners, and federal, state, and local government agencies; (iii) cellular distributed antenna systems (“DAS”) and bi-directional antenna (“BDA”) public safety systems from initial Radio Frequency (“RF”) site assessment, through design, engineering, implementation, and testing; (iv) DAS maintenance and monitoring service, including an in-house 24 hour network operations center, utilizing Software-as-a-Service cloud-based software and customized maintenance program; (v) scalable and energy-efficient mission critical power systems to meet the demand of data equipment deployment for mission critical data centers; (vi) electrical and telecommunications construction and facilities services to commercial, industrial, and institutional facilities; and (vii) end-to-end solutions for safe, reliable, flexible and scalable charging ecosystems.

Projects can be performed under individual contracts or a statement of work under a master service agreement, which are generally multi-year agreements. The typical length of projects can vary and depends on size and complexity: broadband and wireless – two to three months; electrical contracting services – six months to three years; electric vehicle charging infrastructure – three to twelve months. 

The types of services for fleet services primarily involve leasing and maintenance of real property to commercial and fleet operator customers in return for payment. Lease agreements include fixed payments and vary in length from 12 months to 3 years.    

Telecommunications

The Company’s Telecommunications segment revenues are derived from operating a global telecommunication network consisting of domestic switching and related peripheral equipment, carrier-grade routers, and switches for internet and circuit-based services. Types of services typically include providing: (i) routing of voice, data, and SMS to Carriers and Mobile Network Operators (“MNO”) globally; and (ii) customers with internet-protocol-based and time-division multiplexing (“TDM”) access for the transport of long-distance voice and data minutes.

The Company’s Telecommunications segment operates an extensive network of direct routes and offers premium voice communication services for carrying a mix of business, residential and carrier long-distance traffic, data and transit traffic. Telecommunications has both a customer and vendor relationship with most parties. Telecommunications provides the customer routing services through the Telecommunications supplier routes on incoming calls and then Telecommunications purchases routing services from other vendor’s supplier routes in order to complete the call.

11

 

Revenue Recognition

Revenue is recognized when a customer obtains control of promised services. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised services in the contract; (ii) determination of whether the promised services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company’s primary revenue stream is from services. The Company recognizes as revenues the amount of the transaction price for the performance obligation when the performance obligation is satisfied or as it is satisfied.

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer, in an amount that reflects the consideration it expects to be entitled to in exchange for those products or services. The Company evaluates when it is appropriate to recognize revenues based on the gross amount invoiced to the customer or the net amount retained by the Company if a third party is involved.

A contract liability for deferred revenue is recorded when consideration is received or is unconditionally due from a customer prior to transferring control of goods or services to the customer under the terms of a contract. Deferred revenue balances typically result from advance payments received from customers for contracts or from billings in excess of revenue recognized on services arrangements.

Contract assets represent when revenues are recognized in advance of invoice issuance. These assets are presented separately on the consolidated balance sheet and are converted to accounts receivable once the Company’s right to the consideration becomes unconditional, which varies by contract but is generally based on achieving certain acceptance milestones. The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would be one year or less.

Infrastructure

Broadband and wireless, electrical contracting services, and electric vehicle charging projects often require significant services to integrate complex activities and equipment into a single deliverable and are therefore generally accounted for as a single performance obligation, even when delivering multiple services that are capable of being distinct. Contract amendments and change orders, which are generally not distinct from the existing contract, are typically accounted for as a modification of the existing contract and performance obligation.

The Company recognizes revenues from these services over time using an input method, based on assessment of performance completed to date. The Company uses the percentage of completion method when it measures its progress towards completion of the performance obligation based on the ratio of costs incurred to date to total estimated costs at completion under the contract. The Company believes that this approach faithfully depicts the Company’s performance toward complete satisfaction of the performance obligation as it accurately measures the transfer of control of the finished product to the customer. 

Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontracts, and the availability and timing of funding from the customer, among other variables. As a significant change in one or more of these estimates could affect the profitability of contracts, the Company updates contract-related estimates regularly through a review process in which management evaluates the progress and execution of each performance obligation and the estimated cost at completion. As part of this process, management reviews information including, but not limited to, any outstanding key contract matter, progress towards completion and the related program schedule and the related changes in estimates of revenues and costs. The Company recognizes adjustments in estimated profit on contracts on a cumulative catch-up basis. Therefore, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes a provision for the entire loss in the period it is identified.

12

 

The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders. The Company includes variable consideration in the estimated transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of variable consideration to be included in the transaction price, using the expected value or the most likely amount method, which is expected to better predict the amount. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessments of legal enforceability, performance, and all information that is reasonably available to the Company.

Fleet services include a single deliverable of leased parking spaces. The Company recognizes revenues from these services evenly over the life of the contracts.

Telecommunications

The amount of consideration the Company receives and revenue it recognizes is fixed based upon contractually agreed upon rates. The Company recognizes revenue at a point in time when the voice, data and SMS are routed, and the performance obligation is satisfied.

Revenue is earned based on the number of minutes during a call multiplied by the price per minute and is recorded upon completion of a call. Incomplete calls are not revenues earned by Telecommunications and may occur as a result of technical issues or because the customer’s credit limit was exceeded and thus the customer routing of traffic was prevented. Telecommunications evaluates gross versus net revenue recognition for each of its contractual arrangements by assessing indicators of control to determine whether Telecommunications acts as a principal (i.e., gross recognition) or an agent (i.e., net recognition). Telecommunications has determined that it acts as a principal for all of its performance obligations as Telecommunications may accept or reject calls, determines the routing decision and routing vendor and has the risk of financial loss on revenues from customers and amounts owed to the vendors. Net revenue represents gross revenue, net of allowance for doubtful accounts receivable, service credits and service adjustments. Cost of sales includes network costs that consist of access, transport and termination costs. The majority of Telecommunications’ cost of sales is variable, primarily based upon minutes of use, with transmission and termination costs being the most significant expense.

Refer to Note 4, Revenue, for additional information on the Company’s revenue.

Cost of Sales

Cost of sales consists primarily of network telecommunication costs, contracted services, salaries and related employee benefits, including stock-based compensation, material and equipment costs, travel and other costs related to vehicles, training and lease expense.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The Company implemented ASU 2016-13 on January 1, 2023. The impact of adopting this new guidance was not material.  

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 is designed to enhance comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. ASU 2021-08 was effective for the Company beginning January 1, 2023, under a prospective application. ASU 2021-08 requires the Company to measure contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with Accounting Standards Codification ("ASC") Topic 606 as if the Company had originated the contracts. The Company recorded contract assets and contract liabilities acquired in an acquisition in the current year at their respective acquisition date fair values as if it had originated the contracts. Refer to Note 6, Business combination, for additional information. 

13

 

In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current U.S. GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for the Company as of January 1, 2024. Early adoption is permitted. Management is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements, but currently does not believe ASU 2020-06 will have a significant impact on the Company’s financial statements because it no longer has convertible debt outstanding. The Company will continue to monitor relevant accounting pronouncements.

Reclassification 

Certain amounts included in the prior year financial statements and disclosures have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on the Company’s previously reported financial statements. 

Change in Accounting Principle 

Effective January 1, 2023, the Company changed its accounting principle for recognizing stock-based compensation expense from the graded vesting attribution method, where an award is divided into vesting increments or tranches, to the straight-line attribution method of accounting. The Company believes the straight-line attribution method more accurately reflects how awards are earned over its employees’ service periods. Also, it is the predominant method used in its industry, and therefore it better aligns the Company’s recognition of stock-based compensation expense with its peers. 

The retrospective application of the change in accounting principle had an effect on the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of stockholders’ equity. There was no net effect to the amounts reported for net cash provided by (used in) operating, investing or financing activities in the consolidated statements of cash flows for prior periods as a result of the change in accounting method. However, the net loss, change in deferred income taxes and stock-based compensation line items within net cash flows provided by operating activities each decreased as shown below to reflect the change in accounting method. 

14

 

The following tables present the comparative effect of the change in accounting principle and its effect on the Company’s current and previously reported financial statements. 

	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
	(amounts, in thousands, except per share data)
Stock-based compensation
Prior to revision	$	3,339		$	7,848		$	8,890		$	28,353
Revision		1,244			(1,981	)		6,559			(7,839	)
As revised	$	4,583		$	5,867		$	15,449		$	20,514
Loss from operations
Prior to revision	$	(5,117	)	$	(9,974	)	$	(17,901	)	$	(35,226	)
Revision		(1,244	)		1,981			(6,559	)		7,839
As revised	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income tax benefit (expense)
Prior to revision	$	(741	)	$	183		$	(1,093	)	$	1,772
Revision		-			(175	)		-			(436	)
As revised	$	(741	)	$	8		$	(1,093	)	$	1,336
Net income (loss)
Prior to revision	$	(5,707	)	$	14,375		$	(18,450	)	$	(18,408	)
Revision		(1,244	)		1,806			(6,559	)		7,403
As revised	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)
Basic income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.06		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.07		$	(0.14	)	$	(0.25	)
Diluted income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.05		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.06		$	(0.14	)	$	(0.25	)

15

 

The opening balances of accumulated deficit and additional paid in capital as of December 31, 2021, have been adjusted by $8.0 million and $9.1 million, respectively to reflect the cumulative effect of the change.

	As of
	September 30,			December 31,
	2023			2022
	(amounts, in thousands)
Net deferred tax (liability) asset
Prior to revision	$	(1,047	)	$	(1,389	)
Revision		(25	)		(21	)
As revised	$	(1,072	)	$	(1,410	)
Additional paid in capital
Prior to revision	$	220,083		$	197,816
Revision		(11,519	)		(18,093	)
As revised	$	208,564		$	179,723
Accumulated deficit
Prior to revision	$	(195,969	)	$	(173,586	)
Revision		11,494			18,072
As revised	$	(184,475	)	$	(155,514	)
Total stockholders' equity
Prior to revision	$	24,135		$	24,250
Revision		(25	)		(21	)
As revised	$	24,110		$	24,229

Stock-based compensation correction of immaterial error 

In 2023, the Company identified a misstatement related to its presentation of stock-based compensation in its consolidated statements of operations. Although determined to be immaterial, the Company elected to correct the immaterial misstatement and reclassified its stock-based compensation expense to the same financial statement line item as cash compensation paid to the same employees and nonemployees.

The reclassification reflects the change in accounting principle discussed above and had no incremental impact on the consolidated balance sheets, consolidated statements of comprehensive income (loss), consolidated statements of stockholders’ equity, or consolidated statement of cash flows. There was no net effect to the amounts reported for (loss) from operations as a result of this reclassification. However, cost of sales, gross profit, stock-based compensation, general and administrative, salaries and related benefits, and total operating expenses each were adjusted as shown below to reflect the reclassification. 

16

 

The following tables present the effect of the reclassification on the Company’s previously reported financial statements. 

	Year Ended
	December 31,
	2022			2021			2020
	(amounts, in thousands)
Cost of sales
Prior to revision	$	669,620		$	465,503		$	83,554
Revision		2,503			1,771			-
As revised	$	672,123		$	467,274		$	83,554
Gross Profit
Prior to revision	$	28,213		$	11,515		$	1,172
Revision		(2,503	)		(1,771	)		-
As revised	$	25,710		$	9,744		$	1,172
Stock-based compensation
Prior to revision	$	26,499		$	21,801		$	2,005
Revision		(26,499	)		(21,801	)		(2,005	)
As revised	$	-		$	-		$	-
General and administrative
Prior to revision	$	14,392		$	7,995		$	2,020
Revision		9,117			11,011			121
Other Reclassifications		(677	)		-			-
As revised	$	22,832		$	19,006		$	2,141
Salaries and related benefits
Prior to revision	$	16,667		$	8,806		$	687
Revision		14,879			9,019			1,884
Other Reclassifications		657			-			-
As revised	$	32,203		$	17,825		$	2,571
Total operating expenses
Prior to revision	$	67,225		$	40,977		$	5,922
Revision		(2,503	)		(1,771	)		-
Other Reclassifications		(20	)		-			-
As revised	$	64,702		$	39,206		$	5,922

17

 

	Three Months Ended
	March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022
	(amounts, in thousands)
Cost of sales
Prior to revision	$	156,812		$	173,760		$	178,951		$	160,097
Revision		804			704			506			489
Other Reclassifications		-			303			303			(606	)
As revised	$	157,616		$	174,767		$	179,760		$	159,980
Gross Profit
Prior to revision	$	6,166		$	7,281		$	6,906		$	7,860
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		606
As revised	$	5,362		$	6,274		$	6,097		$	7,977
Stock-based compensation
Prior to revision	$	7,424		$	7,223		$	5,867		$	5,985
Revision		(7,424	)		(7,223	)		(5,867	)		(5,985	)
As revised	$	-		$	-		$	-		$	-
General and administrative
Prior to revision	$	2,742		$	3,908		$	3,516		$	4,226
Revision		2,865			2,704			1,775			1,773
Other Reclassifications		-			(160	)		(150	)		(367	)
As revised	$	5,607		$	6,452		$	5,141		$	5,632
Salaries and related benefits
Prior to revision	$	4,193		$	4,127		$	4,417		$	3,930
Revision		3,755			3,815			3,586			3,723
Other Reclassifications		-			(143	)		(153	)		953
As revised	$	7,948		$	7,799		$	7,850		$	8,606
Total operating expenses
Prior to revision	$	15,632		$	17,209		$	14,899		$	19,485
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		586
As revised	$	14,828		$	16,202		$	14,090		$	19,582

18

 

	Three Months Ended
	March 31, 2023
	(amounts, in thousands)
Cost of sales
Prior to revision	$	186,828
Revision		432
As revised	$	187,260
Gross Profit
Prior to revision	$	6,721
Revision		(432	)
As revised	$	6,289
Stock-based compensation
Prior to revision	$	5,902
Revision		(5,902	)
As revised	$	-
General and administrative
Prior to revision	$	3,345
Revision		1,760
As revised	$	5,105
Salaries and related benefits
Prior to revision	$	5,418
Revision		3,710
As revised	$	9,128
Total operating expenses
Prior to revision	$	16,341
Revision		(432	)
As revised	$	15,909

19

  

Note 3. Fair value measurements

Recurring Fair Value Measurements

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis:

	September 30, 2023
(in thousands)	Level 1		Level 2		Level 3		Measured at Net Asset Value as a Practical Expedient		Total
Assets:
Marketable securities (Note 5)	$	4,280	$	-	$	-	$	1,588	$	5,868
Liabilities:
Contingent consideration liability (Note 6)	$	-	$	-	$	5,758	$	-	$	5,758
Derivative liabilities (Note 10)	$	-	$	2	$	-	$	-	$	2

The market value of the equity securities is determined using quoted prices in active markets. The market value of underlying investments in funds is determined using the net asset value (“NAV”) provided by the administrator of the fund as a practical expedient. The NAV is determined by the fund’s trustee based upon the fair value of the underlying assets owned by the fund, less liabilities, divided by outstanding units. In accordance with appropriate accounting guidance, these investments have not been classified in the fair value hierarchy. This class includes investments in a closed end interval fund that invests in publicly traded equity securities of U.S. and foreign companies. There are no unfunded commitments related to this investment. Investment redemptions are limited to 25% of the fund’s outstanding shares but may be redeemed on a quarterly basis with 15 days’ notice. 

The Company had a contingent consideration liability of $3.5 million as of December 31, 2022, related to the Company’s acquisition of EV Group Holdings LLC, and its settlement occurred in the first quarter of 2023. The contingency was based on the Company's average share price for the month ending December 31, 2022. As a result of the settlement of this contingent consideration liability, the Company issued 1,530,145 additional shares of common stock to the sellers. The contingent consideration liability was reflected in accrued liabilities on the consolidated balance sheet, and the remeasurement was reflected in other income (expense), net on the consolidated statement of operations as of and for the period ended December 31, 2022.

In connection with the Greenspeed Acquisition (as defined in Note 6), completed on August 1, 2023, the Company recorded a liability for contingent consideration payable based upon the achievement of certain annual performance benchmarks over 2 years. The fair value of the liability is estimated using discounted cash flows. The significant unobservable inputs (Level 3) used to estimate the fair value include the projected EBITDA values for the 2 year earn-out period (as defined in the purchase agreement), and the discount rate. The contingent consideration measured at fair value using unobservable inputs as of September 30, 2023 is $5.8 million and is included in contingent consideration liability within non-current liabilities on the consolidated balance sheets. Refer to Note 6, Business combination, for additional information. 

Nonrecurring Fair Value Measurements

The Company also has investments in non-marketable securities, which are primarily equity securities in a non-public company that do not have readily determinable fair values. Such investments are initially recorded at cost and adjusted to fair value on a nonrecurring basis through earnings for observable price changes in orderly transactions for identical or similar transactions of the same company (Level 2 of U.S. GAAP fair value hierarchy). Historical adjustments have not been material. The carrying amount of these equity securities is $0.3 million and $0.2 million as of September 30, 2023, and December 31, 2022, respectively, and is included in non-marketable securities on the consolidated balance sheet. There was an immaterial increase in the non-marketable securities during the nine months ended September 30, 2023 and no change during the nine months ended September 30, 2022.

20

 

Note 4. Revenue

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. Accounts receivable in the table below excludes other receivables that are not generated from contracts with customers. These amounts are $0.1 million and $0.0 million as of September 30, 2023, and December 31, 2022, respectively.

(in thousands)	September 30, 2023		December 31, 2022
Receivables included in "Accounts receivable net of allowances"	$	55,710	$	72,405
Contract assets		8,128		6,090
Contract liabilities		25,201		13,741

The Company has remaining performance obligations of $139.2 million at September 30, 2023. This figure is inclusive of the Company’s deferred revenue and backlog. The Company only includes projects within its backlog reporting if there is a signed contract, purchase order or other legally binding agreement. There can be no assurance that the Company’s backlog will be earned as revenue in any particular period, if at all. Included within this figure is $25.2 million of deferred revenue that is classified within current liabilities on the consolidated balance sheets. The Company expects to earn the full amount of its deferred revenue within the next twelve months. The Company anticipates it will recognize approximately 25% of its remaining performance obligations within backlog as revenue in 2023, approximately 74% in 2024, and the remainder in 2025.

Changes in Contract Balances 

The timing of revenue recognition, billings and cash collections results in accounts receivable, and customer advances and unearned revenue on the Company’s consolidated balance sheets. At times, the Company receives advance payments or deposits from its customers before revenue is recognized, resulting in contract liabilities. The contract liabilities primarily relate to the advance consideration received from customers on certain contracts. For these contracts, revenue is recognized in a manner that is consistent with the satisfaction of the underlying performance obligations. The contract liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each respective reporting period within the contract liabilities line item.  

Significant changes in the balance of contract liabilities during the period are as follows: 

(in thousands)
Balance at December 31, 2022	$	13,741
Revenue recognized during the period that was included in the beginning balance		(12,945	)
Additions, net of revenue recognized during the period		24,405
Balance at September 30, 2023	$	25,201

21

 

Disaggregation of Revenue 

The following table presents the Company’s revenues disaggregated by segment: 

	Three Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Infrastructure	$	31,795	$	26,753
Telecommunications		100,482		159,104
Total	$	132,277	$	185,857

	Nine Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Infrastructure	$	89,246	$	71,804
Telecommunications		384,166		458,072
Total	$	473,412	$	529,876

Note 5. Marketable securities and other investments

The Company’s marketable securities are stated at fair value. Any changes in the fair value of the Company’s marketable securities are included within income (loss) from investments, net on the consolidated statement of operations.

Realized and unrealized gains and losses are determined on an average cost basis. The marketable securities are investments predominantly in shares of large publicly traded companies which are being invested until such time as the funds are needed for operations.

The fair value of these marketable securities is as follows:

(in thousands)	September 30, 2023		December 31, 2022
Brokerage Account	$	5,868	$	6,757

22

 

During the three months ended September 30, 2023, the Company recognized net gains of $0.7 million on marketable securities and other investments, which included $0.2 million of realized gains and $0.5 million of unrealized gains on marketable and non-marketable securities. During the nine months ended September 30, 2023, the Company recognized net gains of $1.6 million on marketable securities and other investments, which included $0.1 million of realized gains and $1.5 million of unrealized gains on marketable and non-marketable securities.

During the three months ended September 30, 2022, the Company recognized net losses of $0.2 million on marketable securities and other investments, which included $0.1 million of realized losses and $0.1 million of unrealized losses on marketable securities. During the nine months ended September 30, 2022, the Company recognized net losses of $1.3 million on marketable securities and other investments, which included $0.7 million of realized losses and $0.6 million of unrealized losses on marketable securities.

Note 6. Business combination

Greenspeed Energy Solutions, LLC

On August 1, 2023, the Company completed the acquisition of all of the issued and outstanding units of Greenspeed Energy Solutions, LLC ("Greenspeed") for up to $15.0 million, net of closing adjustments (the "Greenspeed Acquisition"). The consideration includes $6.0 million in cash consideration reduced for certain transaction expenses and working capital adjustments, $2.0 million in equity consideration at closing, and a performance-based earn-out over the next two years of up to $7.0 million. The Company recorded the performance-based earn-out as a contingent consideration liability at the acquisition date of approximately $5.8 million.  

The following table summarizes the total consideration as well as the preliminary fair values of the net assets acquired, and liabilities assumed as of the acquisition date. The final determination of the fair value of certain assets and liabilities will be completed within the one year measurement period from the date of acquisition as required by ASC Topic 805, Business Combinations. As of September 30, 2023, the valuation studies necessary to determine the fair market value of the assets acquired and liabilities assumed are preliminary, including the validation of the underlying cash flows used to determine the fair values. Any potential adjustments could be material in relation to the preliminary values presented below.  

(in thousands)	Preliminary Estimates
Cash	$	5,289
Common stock		2,000
Contingent consideration		5,758
Total Consideration	$	13,047
Fair values of identifiable net assets and liabilities:
Assets:
Current assets
Cash		1,845
Accounts receivable		1,315
Deposits, prepaids and other current assets		9
Inventory		205
Contract assets		744
Total current assets		4,118
Property, plant and equipment		212
Operating lease right-of-use assets		259
Goodwill		13,234
Total assets		17,823
Liabilities:
Current liabilities
Accounts payable		542
Accrued liabilities		77
Contract liabilities		3,741
Operating lease liabilities		54
Finance lease liabilities		50
Total current liabilities		4,464
Non-current liabilities
Operating lease liabilities, non-current		214
Finance lease liabilities, non-current		98
Total liabilities		4,776
Total fair value of identifiable net assets and liabilities	$	13,047

Management believes that the Greenspeed Acquisition provides the Company with an opportunity to benefit from technical knowledge, and expected synergies from combining operations. The goodwill is not deductible for income tax purposes.  

The inclusion of the Greenspeed Acquisition in the Company's consolidated financial statements is not deemed material with respect to the requirement to provide pro-forma results of operations. As such, pro-forma information is not presented. 

Note 7. Goodwill and intangible assets

Goodwill is not amortized for book purposes, however, it may be amortized for tax purposes. The Company accounts for its acquired customer relationships, backlogs, non-compete agreements, favorable leases and brand assets as definite-lived intangible assets. Goodwill is reviewed at least annually for impairment. At the time of each review, if the fair value of a reporting unit is less than its respective carrying value, then a charge is recorded to the results of operations.

The following table presents goodwill by reportable segment:

(in thousands)	Infrastructure		Telecommunications		Consolidated Total
Goodwill, net, as of December 31, 2022	$	11,900	$	772	$	12,672
Acquisition (See Note 6)	$	13,234	$	-	$	13,234
Goodwill, net, as of September 30, 2023	$	25,134	$	772	$	25,906

The Company’s goodwill is tested for impairment on an annual basis and more often if indications of impairment exist. The Company conducts its annual impairment analyses as of October 1 each year. There were no indicators of impairment during the three-month and nine-month period ended  September 30, 2023.

The Company performs a review of its intangible assets for impairment when evidence exists that the carrying value of an asset may not be recoverable. There were no events or changes in circumstances which indicated the Company’s intangible assets may not be recoverable. Accordingly, no impairment assessments were conducted on its intangible assets during the three-month and nine-month period ended September 30, 2023.

The following table presents intangible assets:

	September 30, 2023							December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	30,849	$	(4,031	)	$	26,818	$	30,849	$	(2,489	)	$	28,360
Backlog		3,322		(1,938	)		1,384		3,322		(1,107	)		2,215
Non-compete agreements		3,729		(1,594	)		2,135		3,729		(895	)		2,834
Off-market favorable leases		955		(955	)		-		955		(955	)		-
Brand		560		(65	)		495		560		(37	)		523
Total	$	39,415	$	(8,583	)	$	30,832	$	39,415	$	(5,483	)	$	33,932

23

 

Note 8. Related party transactions

On August 31, 2023, the Company entered into a separation and consulting agreement with Andrew Fox, the Company's former Chief Executive Officer and a current member of the Company's Board of Directors. The agreement provides for the continued vesting of stock options previously granted to Mr. Fox and extends the exercise period for those options through October 11, 2025. Pursuant to this agreement, Mr. Fox will serve as a strategic advisor to the Board of Directors for a one-year initial term with compensation of approximately $0.5 million.

On August 11, 2023, the Company entered into a Securities Purchase Agreement with KORR Value, L.P. (the “August 2023 SPA”), pursuant to which, beginning on October 15, 2023 and through March 31, 2024, the Company has the right, but not the obligation, to sell, and to require the purchaser to purchase, up to $5.0 million of common stock, at a purchase price of $1.00 per share. The Company will be obligated to issue warrants to purchase 1,000,000 shares of common stock on the date the Company first elects to require the purchaser to purchase shares pursuant to the August 2023 SPA. Such warrants would have a two-year term and an exercise price of $1.50 per share. Kenneth Orr, a beneficial owner of more than 5% of the Company’s common stock and the former Chairman of the Company, has sole voting and dispositive power over the shares held by KORR Value, L.P.

Greenspeed obtains lighting materials and equipment for certain projects from a related party, Greenwave Partners, LLC ("Greenwave"). Greenwave has established relationships with lighting suppliers as a wholesaler and is able to obtain lighting materials and equipment on more economical terms than Greenspeed.  Cost savings are passed on to Greenspeed. During the nine months ended September 30, 2023, the total amount invoiced from Greenwave to Greenspeed was approximately $0.2 million. Paul Williams is the President and CEO of Greenspeed and also is a member of Greenwave.

In 2022, the Company entered into a special advisor agreement with KORR Acquisitions Group, Inc., an entity controlled by Kenneth Orr, and a stockholder of the Company. The agreement included an upfront payment of $0.5 million and currently includes a monthly advisory fee of $25,000.

Note 9. Debt

Debt was comprised of the following as of the periods indicated:

(in thousands)	September 30, 2023			December 31, 2022
Line of Credit
ANS Line of Credit	$	-		$	5,024
Total Line of Credit		-			5,024
Notes Payable
Issued on May 19, 2021		11,860			11,860
Issued on December 17, 2021		15,926			15,926
Total Face Value of Notes Payable		27,786			27,786
Less: Unamortized Discount		(660	)		(3,630	)
Net Carrying Value of Notes Payable		27,126			24,156
Total debt before deferred financing costs		27,126			29,180
Current amount of Notes Payable		27,126			24,156
Current amount of Line of Credit		-			5,024
Total current portion of long-term debt		27,126			29,180
Total long-term debt, net of current portion	$	-		$	-

Convertible notes payable

May 2020 Financing

On May 8, 2020, the Company entered into a securities purchase agreement with certain institutional investors (collectively, the “May 2020 Investors”) pursuant to which the Company issued convertible notes in an aggregate principal amount of $3.0 million for an aggregate purchase price of $2.7 million (the “May 2020 Convertible Notes”). In connection with the issuance of the May 2020 Convertible Notes, the Company issued to the May 2020 Investors warrants to purchase an aggregate of 7,600,000 shares of common stock (collectively, the “Warrants”) and 7.5 shares of series G convertible preferred stock (the “Series G preferred stock”). The May 2020 Convertible Notes’ maturity date of May 8, 2021, was subsequently extended to  May 8, 2023. The May 2020 Convertible Notes accrued interest at a rate of 8% per annum, subject to increase to 20% per annum upon and during the occurrence of an event of default. Interest was payable in cash on a quarterly basis beginning on December 31, 2020.

November 2020 Financing

On November 3, 2020, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “November 2020 Investors”) pursuant to which it issued convertible notes in an aggregate principal amount of $3.9 million for an aggregate purchase price of $3.5 million (the “November 2020 Convertible Notes”). In connection with the issuance of the November 2020 Convertible Notes, the Company issued to the November 2020 Investors 903,226 shares of common stock. The November 2020 Convertible Notes were convertible at any time, at the holder’s option, into shares of the Company’s common stock at a conversion price of $0.25 per share. The November 2020 Convertible Notes’ maturity was extended from November 3, 2023, to  November 3, 2024. The November 2020 Convertible Notes accrued interest at a rate of 8% per annum.

24

 

May 2021 Financing

On May 19, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “May 2021 Investors”) pursuant to which it issued convertible notes in an aggregate principal amount of $5.6 million for an aggregate purchase price of $5.0 million (collectively, the “May 2021 Convertible Notes” and together with the May 2020 Convertible Notes and the November 2020 Convertible Notes, the “Convertible Notes”). In connection with the issuance of the May 2021 Convertible Notes, the Company issued to the May 2021 Investors warrants to acquire 1,870,000 shares of common stock. The May 2021 Convertible Notes were convertible at any time, at the holder’s option, into shares of the Company’s common stock at a conversion price of $3.00 per share. The May 2021 Convertible Notes were due to mature on  May 19, 2024. The May 2021 Convertible Notes accrued interest at a rate of 8% per annum.

Conversion of Convertible Notes to Preferred Stock

In the second quarter of 2022, the Convertible Notes were exchanged for 1,177,023 shares of Series D preferred stock (“Series D preferred stock”). As a result of this exchange, the Company has no Convertible Notes Payable outstanding at September 30, 2023, and December 31, 2022. Refer to Note 13, Stockholders’ equity, for additional information. 

The Company has accounted for all Convertible Notes Payable as a financing transaction, wherein the net proceeds that were received were allocated to the financial instrument issued. Prior to making the accounting allocation, the Company evaluated the Convertible Notes under ASC 815, Derivatives and Hedging, which generally requires the analysis of embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. None of the terms and features embedded in the notes required bifurcation and liability classification.

The Company analyzed the detachable warrants under ASC 480 and ASC 815. The warrants did not fall under the guidance of ASC 480. After analyzing the warrants under ASC 815, it was determined that the warrants met all of the requirements for equity classification under guidance of ASC 815-40-25-1 through 6.

Line of credit

Nextridge Inc. (“Nextridge”) and its operating subsidiary Advance Network Services, LLC. (“ANS”) have a revolving $8.0 million line of credit (the “ANS Line of Credit”) available with a bank, collateralized by all the assets of Nextridge and ANS. Interest is payable monthly at the Wall Street Journal prime rate (8.50% and 7.50% at September 30, 2023, and December 31, 2022, respectively). As of September 30, 2023, and December 31, 2022, the Company had outstanding balances of $0 and $5.0 million, respectively, on this ANS Line of Credit.

25

 

On October 25, 2022, Nextridge and ANS renewed the ANS Line of Credit increasing the availability from $4.0 million to $8.0 million. Borrowings under the ANS Line of Credit will bear interest at a floating rate at the Wall Street Journal prime rate with a floor of 5%. Advances under the line of credit are limited to 70% and 50% of Nextridge and ANS’ eligible accounts receivable and work in progress, respectively. At each fiscal year end, Nextridge and ANS must maintain a minimum debt service coverage ratio of 1.2:1 and maximum debt/tangible net worth ratio of 3:1. The outstanding balance on the ANS Line of Credit is payable upon demand by the bank. In addition to the security interest in the assets of Nextridge and ANS, the line of credit is guaranteed by the Company and Charge Infrastructure Holdings, Inc., the parent of Nextridge and ANS and a subsidiary of the Company. At December 31, 2022, the Company was in compliance with the aforementioned covenants. The ANS Line of Credit has a termination date of October 31, 2024.

On November 18, 2022, Nextridge and ANS renewed a $750,000 equipment and vehicle line of credit available with a bank. Interest is payable monthly at the Wall Street Journal prime rate. On December 1, 2023, the line will convert to a term loan with the then five-year Federal Home Loan Bank rate + 2.5% and have a five-year term with a five-year amortization. There are no financial commitments or covenants on the line of credit. As of September 30, 2023, and December 31, 2022, the Company had no outstanding balance on this line of credit.

B W Electrical Services, LLC. (“BW”) had a revolving $3.0 million line of credit (the “BW Line of Credit”) available with a bank, collateralized by all the assets of BW. Interest was payable monthly at the Wall Street Journal prime rate (8.50% and 7.50% at September 30, 2023, and December 31, 2022, respectively). Effective July 26, 2023, BW renewed the facility with substantially the same terms and an expiration of August 1, 2024. 

Advances under the BW Line of Credit are limited to 75% of BW’s eligible accounts receivable. At all times during the loan term BW is required to maintain a minimum increase in the net retained earnings of $0.2 million tested annually and maintain a maximum seller funded debt to EBIDA of 2.0x tested semi-annually on a trailing twelve-month basis beginning with the period ended June 30, 2022. In addition to the security interest in the assets of BW, the BW Line of Credit is guaranteed by the Company and Charge Infrastructure Holdings, Inc., the parent of BW and a subsidiary of the Company. As of September 30, 2023, and December 31, 2022, the Company had no outstanding balance on the BW Line of Credit. At September 30, 2023, and December 31, 2022, the Company was in compliance with the aforementioned covenants.

Notes payable

On May 19, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “May 2021 Investors”) pursuant to which it issued notes payable in an aggregate face value (includes 7.5% premium and 10% original issue discount) of $11.8 million for an aggregate purchase price of $10.0 million (the “May 2021 Notes”). The May 2021 Notes have a coupon of 8% and an 18-month term, subject to increase to 20% per annum upon and during the occurrence of an event of default. The May 2021 Notes’ original maturity date of November 19, 2022, was extended to November 19, 2023.

On December 17, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “December 2021 Investors”) pursuant to which it issued a note payable in an aggregated face value of $15.9 million for an aggregate purchase price of $13.3 million (collectively, the “December 2021 Notes” and together with the May 2021 Notes, the “Notes”). The December 2021 Notes have a coupon of 7.5% and a 23-month term, subject to increase to 20% per annum upon and during the occurrence of an event of default. The December 2021 Notes mature on November 19, 2023.

The securities purchase agreements entered into in May 2021 and December 2021 include certain affirmative and negative covenants, including, but not limited to, participation rights in future debt and equity offerings, restrictions on future variable rate transactions and limitations on the Company’s ability to incur indebtedness other than Permitted Indebtedness (as defined in the respective agreements) while liabilities to the investors remain outstanding. The securities purchase agreement entered into in December 2021 Notes also contain a most-favored nations provision, such that, if the Company subsequently issues securities having more favorable terms (“Other Securities”), the purchasers may exchange their securities for Other Securities.  

Interest Expense

The components of interest expense are as follows:

	Three Months Ended September 30,
(in thousands)	2023			2022
Interest expense	$	(499	)	$	(520	)
Amortization of debt discount		(990	)		(495	)
Total net interest expense	$	(1,489	)	$	(1,015	)

26

 

	Nine Months Ended September 30,
(in thousands)	2023			2022
Interest expense	$	(1,545	)	$	(2,001	)
Amortization of debt discount		(2,970	)		(7,938	)
Total net interest expense	$	(4,515	)	$	(9,939	)

Note 10. Derivative liabilities

The Company does not use financial derivative instruments to manage risk. In June 2022, the Company exchanged the outstanding convertible debt for Series D preferred stock (“Series D preferred stock”). Concurrently, the warrants that were granted along with the original convertible debt were amended to provide, at the holders’ choice, the option to exercise for a to-be-issued class of preferred stock, which are convertible into the same number of shares of common stock as would have been issued upon exercise of such warrants under the original terms. This amendment caused the instruments to be treated as a derivative liability beginning on June 30, 2022. The warrants were reclassified from equity to a derivative liability and measured at fair value using a Black Scholes model (Level 2 of U.S. GAAP fair value hierarchy), which included inputs for exercise price, stock price, term to expiration, volatility, and interest rate. The impact was a derivative liability of approximately $40.4 million and a deemed dividend of approximately $32.8 million. This derivative liability is revalued on a recurring basis with changes in the fair value of the derivative recorded through the consolidated statement of operations.

In the first quarter of 2023, the Arena Investors (defined below) exercised 7.6 million warrants issued in May 2020 (the “May 2020 Warrants”) into: (i) 4.4 million shares of common stock; and (ii) 3.2 million shares of Series E preferred stock (“Series E preferred stock”). In connection with this exercise, the Company revalued the exercised warrants immediately before the exercise and recorded a gain of $0.9 million with an offsetting reduction to the outstanding derivative liability. The Company revalued the remaining warrants as of March 31, 2023, June 30, 2023, and September 30, 2023, and recorded a gain of $0.5 million, $0.3 million, and $0.1 million, respectively, with an offsetting reduction to the outstanding derivative liability. These gains on the remeasurement of the warrants are included in the Change in fair value of derivative liabilities line item on the consolidated statement of operations. Refer to Note 13, Stockholders’ equity, and Note 14, Stock-based compensation, for additional information.

The following tables summarize the effects on the Company’s gain (loss) associated with changes in the fair values of the derivative financial instruments by type of financing reflected on the change in fair value of derivative liabilities line on the consolidated statement of operations:

	Three Months Ended September 30,
(in thousands)	2023			2022
Derivative liability beginning balance	$	59		$	40,443
Change in fair value of derivative liabilities		(57	)		(28,669	)
Derivative liability ending balance	$	2		$	11,774

	Nine Months Ended September 30,
(in thousands)	2023			2022
Derivative liability beginning balance	$	6,521		$	-
Reclassification of derivative		-			40,443
Change in fair value of derivative liabilities		(1,713	)		(28,669	)
Warrant exercise		(4,806	)		-
Derivative liability ending balance	$	2		$	11,774

27

 

Note 11. Leases

Lease Revenue

The Company leases commercial properties under agreements that are classified as operating leases. The Company’s commercial property leases generally include minimum rents and do not include recoveries for property taxes and common area maintenance.

The Company’s rental revenues are earned from its operating subsidiary EVDepot, LLC (“EV Depot”) operations and are a component of Infrastructure revenues disclosed in Note 4, Revenue. The following table summarizes the fixed components of rental revenue for the nine and three months ended September 30, 2022, and 2022:

	Three Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Fixed component	$	844	$	1,139
Variable component		-		-
Total	$	844	$	1,139

	Nine Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Fixed component	$	2,577	$	3,549
Variable component		-		-
Total	$	2,577	$	3,549

Note 12. Reportable segments

The Company has two reportable operating segments - Infrastructure, and Telecommunications. The Company also has a Non-operating corporate segment. All inter-segment revenues are eliminated.

Refer to Note 4, Revenue, for additional information on the Company’s revenue by segment. Summary information with respect to the Company’s income (loss) from operations is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Income (loss) from operations:
Infrastructure	$	658		$	(1,152	)	$	(2,207	)	$	(4,294	)
Telecommunications		108			181			(29	)		806
Non-operating corporate		(7,127	)		(7,022	)		(22,224	)		(23,899	)
Total	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)

28

 

A reconciliation of the Company’s consolidated segment loss from operations to consolidated loss from operations before income taxes and net loss is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Loss from operations	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income (loss) from investments, net		675			(200	)		1,637			(1,343	)
Change in fair value of derivative liabilities		57			28,669			1,713			28,669
Interest expense		(1,489	)		(1,015	)		(4,515	)		(9,939	)
Loss on impairment		(56	)		-			(114	)		-
Other income (expense), net		848			(3,289	)		1,876			(2,255	)
Foreign exchange gain (loss)		116			1			(53	)		(86	)
Total other expenses		151			24,166			544			15,046
Income (loss) before income taxes		(6,210	)		16,173			(23,916	)		(12,341	)
Income tax (expense) benefit		(741	)		8			(1,093	)		1,336
Net income (loss)	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)

Summary information with respect to the Company’s operating segments is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Depreciation and amortization:
Infrastructure	$	1,166	$	391	$	3,539	$	1,618
Telecommunications		6		42		35		127
Total	$	1,172	$	433	$	3,574	$	1,745

	Nine Months Ended September 30,
(in thousands)	2023		2022
Capital expenditures:
Infrastructure	$	143	$	205
Telecommunications		-		-
Total	$	143	$	205

(in thousands)	September 30, 2023		December 31, 2022
Investments:
Infrastructure	$	1,595	$	1,389
Telecommunications		-		-
Non-operating corporate		4,552		5,604
Total	$	6,147	$	6,993

(in thousands)	September 30, 2023		December 31, 2022 (As Adjusted)
Assets:
Infrastructure	$	114,628	$	102,248
Telecommunications		54,880		42,046
Non-operating corporate		18,009		24,160
Total	$	187,517	$	168,454

29

 

Note 13. Stockholders’ equity

The Company has evaluated each series of preferred stock for proper classification under ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging. ASC 480 generally requires liability classification for financial instruments that are certain to be redeemed, as they represent obligations to purchase shares of stock or represent obligations to issue a variable number of common shares. Series C preferred stock ("Series C preferred stock") is classified as a liability within mezzanine equity on the consolidated balance sheet as of September 30, 2023, and December 31, 2022.

The Company has 20,000,000 shares of preferred stock authorized with a par value of $0.0001.

Permanent Equity

Preferred Stock

Series D: On June 30, 2022, the Company entered into an exchange agreement with funds affiliated with Arena Investors LP (“Arena Investors”) pursuant to which the Company issued 1,177,023 shares of Series D preferred stock. The Series D preferred stock was issued in exchange for the Convertible Notes. The total principal of the Convertible Notes was $12.5 million. The remaining unamortized discount as of June 30, 2022, of $4.3 million was fully amortized during the period ended June 30, 2022, and included in interest expense on the consolidated statement of operations. As of September 30, 2023, and December 31, 2022, there were 1,177,023 shares of Series D preferred stock issued and outstanding.

The Series D preferred stock has the following designations:

● Convertible at the option of the holder into common stock at $0.4248 per share

● The Series D liquidation preference is equal to $10.6191 per share

● The holders are entitled to receive cumulative quarterly dividends at a fixed annual rate of 2.25% of the liquidation preference, or $0.23893 per share

● The liquidation preference is senior in liquidation rights to holders of common stock.

● No voting rights

In addition to the exchange of the Convertible Notes, the related 11.8 million outstanding warrants to purchase common stock were amended to allow the holder to exercise for a to-be-issued class of the Company’s preferred stock, convertible into the same number of shares of common stock as would have been issued upon exercise of such warrants under the original terms. This amendment caused the instruments to be treated as a derivative liability beginning on June 30, 2022. The transition to derivative accounting created a derivative liability of $40.4 million and a related deemed dividend of $32.8 million. Changes in the fair value of the derivative liability are marked to market through the consolidated statement of operations in the respective period.

Series E: In connection with the Series D preferred stock discussed above, the Company entered into an agreement with the Arena Investors pursuant to which the holder of the 11.8 million outstanding warrants to purchase common stock was allowed to exercise for shares of a to-be-issued class of preferred stock. Pursuant to this provision, on March 14, 2023, the Arena Investors exercised the warrants issued in May 2020 (the “May 2020 Warrants”) into: (i) 4.4 million shares of common stock; and (ii) 3.2 million shares of Series E preferred stock.

The Series E preferred stock has the following designations:

● Convertible at the option of the holder at $0.50 per share of common stock

● The liquidation preference is senior in liquidation rights to holders of common stock.

● No dividends

● No voting rights

Common Stock

On April 20, 2022, the Company entered into a securities purchase agreement with an affiliate of Island Capital Group, LLC pursuant to which the Company issued 1,428,575 shares of Charge’s common stock and three-year warrants to purchase up to 2,000,000 shares of Charge’s common stock at $8.50 per share for an aggregate purchase price of $10.0 million. The purchase price was allocated between common stock and warrants and is reported within common stock and additional paid-in capital on the consolidated balance sheet. Pursuant to the purchase agreement, until February 2025, the purchaser has the right to participate, up to 25% in any issuance by the Company of indebtedness, common stock or common stock equivalents for cash other than exempt issuances, as defined in the agreement.

30

 

On December 8, 2020, the Company entered into a Private Placement Agreement for the purchase of up to an aggregate $2.5 million of Charge’s common stock at $0.25 per share. In connection with this agreement, the Company issued 8.7 million shares for an aggregate purchase price of $2.2 million. The shares were issued on January 15, 2021.

Mezzanine Equity

Preferred Stock

Series C: On December 17, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP pursuant to which the Company issued 2,370,370 shares of Series C preferred stock at an aggregate face value of $7.4 million for an aggregate purchase price of $6.7 million. In connection with the issuance of the Series C preferred stock, the Company also issued warrants to purchase 2,370,370 shares of the Company’s common stock. The Company has valued and recorded the beneficial conversion feature of the Series C preferred stock and the warrants resulting in a deemed dividend at the time of issuance.

On February 25, 2022, the Company entered into a securities purchase agreement with an affiliate of Island Capital Group LLC pursuant to which it issued 3,856,000 shares of Series C preferred stock at an aggregate face value of $12.1 million for an aggregate purchase price of $10.8 million. The Company has valued and recorded the beneficial conversion feature of the Series C preferred stock resulting in a deemed dividend at the time of issuance. As of September 30, 2023, and December 31, 2022, there were 6,226,370 shares of Series C preferred stock issued and outstanding.

The Series C preferred stock has the following designations:

● Convertible at the option of the holder at a conversion price of $3.125 per share

● The holders are entitled to receive cumulative dividends at 6% per annum, payable monthly

● In the event of reorganization, this class of preferred will not be affected by any such capital reorganization

● The Series C liquidation preference is equal to the stated value, plus any accrued and unpaid dividends

● Change of control provision whereby the Series C preferred shareholders would receive their stated value before all other shareholders

● No voting rights

● The liquidation preference is senior in liquidation rights to holders of common stock.

● Redemption features:

o If the closing price on any particular date exceeds 200% of the effective conversion price, the Company may force the conversion of preferred stock with 10 days written notice;

o At any time after the original issue date, the Company has the option to redeem some or all the outstanding preferred stock for cash within 10 days written notice; and

o On the third anniversary of the issue date, the holder may request redemption, at the Company’s option of cash or common stock, at the conversion price equal to the three-year redemption amount (a) 100% of the aggregate stated value then outstanding, (b) accrued but unpaid dividend, (c) additional cash consideration in order for the Purchasers to achieve a 20% internal rate of return, and (d) all liquidated damages and other amounts due in respect of the preferred stock.

The Series C preferred stock provides that the Company shall redeem the preferred stock for cash or common stock at the Company’s option and, therefore, is not considered mandatorily redeemable. However, due to the change in control provision, the Series C preferred stock has liquidation preference and is deemed a liability and presented within mezzanine equity on the consolidated balance sheet as of September 30, 2023, and December 31, 2022.

During the third quarter of 2023, the Company determined there were facts and circumstances outside the holders' control which may prevent the Series C preferred stock from becoming redeemable by the holders. The Series C is classified as mezzanine equity due to the presence of the right of the holders to redeem outside of the Company's control. The holders' redemption is scheduled to occur on the third anniversary of the issue date and would occur based solely on the passage of time. However, due to changes in the underlying facts and circumstances, the Company concluded that it is not probable that the Series C preferred stock will become redeemable by the holders. The Company has the right to optionally redeem the Series C preferred stock prior to the third anniversary of the issue date. Therefore, the Company subsequently remeasured its Series C preferred stock to its maximum redemption amount at the balance sheet date. This subsequent remeasurement increased the carrying value of the Series C preferred stock to the face value of $19.5 million.    

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Warrants 

Warrant activity is summarized as follows: 

	Number of Warrants			Weighted Average			Weighted Average Remaining Contractual Life
	(in thousands)			Exercise Price			(in years)
Warrants outstanding at January 1, 2022		24,085		$	1.74			3.0
Issued		2,000			8.50			2.8
Exercised		(8,183	)		(1.59	)		N/A
Expired		-			-			N/A
Warrants outstanding at December 31, 2022		17,902		$	2.56			1.8
Warrants exercisable at December 31, 2022		17,902		$	2.56			1.8
Issued		-			-
Exercised		(7,600	)		0.50			N/A
Expired		-			-			N/A
Warrants outstanding at September 30, 2023		10,302		$	4.08			2.1
Warrants exercisable at September 30, 2023		10,302		$	4.08			2.1

Note 14. Stock-based compensation

2020 Omnibus Equity Incentive Plan

On January 11, 2021, the Company’s Board of Directors and a majority of its stockholders adopted the 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), as amended and restated as of May 7, 2021, and on December 23, 2021, with 75.0 million shares available for issuance. Under the 2020 Plan, the Company may grant stock options, restricted stock, dividend equivalents, restricted stock units, stock appreciation rights, and other stock or cash-based awards to individuals who are employees, officers, non-employee directors or consultants of the Company. The vesting periods range from one to four years. As of September 30, 2023, approximately 35.8 million shares remain available for issuance under the 2020 Plan.

Non-Qualified Stock Option Agreement

On November 1, 2020, Transworld Holdings, Inc. granted 10.5 million non-qualified stock options to the spouse of the Interim Chief Executive Officer and current member of the Company’s Board of Directors for service in facilitating and completing the acquisition of PTGi International Carrier Services, Inc. (“PTGi”). The stock options have an exercise price of $0.55, vest over a period of three years from the grant date and have a contractual term of 10 years. The grant date fair value of these stock options using the Black Scholes Model ("BSM") valuation was $0.51 per share. These non-qualified stock options are separate from the 2020 Plan.

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Stock options

Stock option activity is summarized as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price		Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Term (in years)
Options outstanding at December 31, 2022		49,576		$	2.07		-		-
Options granted		7,480			1.04		-		-
Options exercised		(75	)		0.55		-		-
Options cancelled		(8,553	)		2.85		-		-
Options outstanding at September 30, 2023		48,428		$	1.77	$	122		4.79
Options exercisable at September 30, 2023		26,943		$	1.60	$	92		3.97
Vested and expected to vest at September 30, 2023		48,428		$	1.77	$	122		4.79

The weighted-average grant date fair value of all options granted during the three and nine months ended September 30, 2023, was $0.53 and $0.62, respectively. The total intrinsic value of stock options exercised during the three and nine months ended September 30, 2023, was $0.0 million and $0.1 million, respectively. The total intrinsic value of stock options exercised during the three and nine months ended September 30, 2022, was $0.7 million. At September 30, 2023 there was $22.9 million of unrecognized stock-based compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 1.5 years.

The Company uses the following assumptions in its BSM valuation for stock options granted:

	Nine Months Ended September 30,
Weighted risk-free interest rate 1		3.5	%
Weighted-average volatility 2		59	%
Weighted expected dividend yield 3		-	%
Weighted expected term (in years) 4		5.7

_{1. Risk-free interest rate - Determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options.} 

_{2. Expected volatility - Determined based on a blend of the Company}’_{s historic stock price volatility and the historic volatility of a peer group of publicly traded companies.}  

_{3. Expected dividend yield - Determined to be zero as the Company has not and does not currently plan to issue dividends.} 

_{4. Expected term - Determined using the} “_{simplified method}” _{for estimating the expected option life, which is the midpoint of the weighted-average vesting period and contractual term of the option.}  

Restricted stock units

Restricted stock unit (“RSU”) activity is summarized as follows:

	Number of			Weighted Average
	Shares (in thousands)			Grant Date Fair Value
RSUs outstanding at December 31, 2022		405		$	2.26
RSUs granted		40			0.92
RSUs released		(76	)		2.27
RSUs forfeited		(100	)		2.22
RSUs outstanding at September 30, 2023		269		$	2.07
Weighted average remaining recognition period in years		2.9
Unamortized stock-based compensation expense	$	540

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Stock-based compensation expense 

The following tables present the Company’s stock-based compensation expense, which is related primarily to options and is a non-cash expense, in the consolidated statements of operations: 

	Three Months Ended September 30,
(in thousands)	2023		2022 (As Adjusted)
Cost of sales	$	228	$	506
General and administrative		845		1,775
Salaries and related benefits		3,510		3,586
Total stock-based compensation		4,583		5,867
Income tax benefit (1)		425		-
After-tax stock-based compensation expense	$	4,158	$	5,867

	Nine Months Ended September 30,
(in thousands)	2023		2022 (As Adjusted)
Cost of sales	$	961	$	2,014
General and administrative		3,956		7,344
Salaries and related benefits		10,532		11,156
Total stock-based compensation		15,449		20,514
Income tax benefit (1)		574		1,735
After-tax stock-based compensation expense	$	14,875	$	18,779

(1) Amounts exclude impact from any stock-based compensation expense subject to Section 162(m) of the Internal Revenue Code, which is nondeductible for income tax purposes. 

Note 15. Commitments, contingencies and concentration risk

Contingencies

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450, Contingencies. Litigation and contingency accruals are based on the Company’s assessment, including advice of legal counsel, regarding the expected outcome of litigation or other dispute resolution proceedings. If the Company determines that an unfavorable outcome is probable and can be reasonably assessed, it establishes the necessary accruals. As of September 30, 2023, and December 31, 2022, the Company is not aware of any contingent liabilities that should be reflected in the consolidated financial statements.

Other Commitments

Indemnities

The Company generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject the Company to indemnity claims, liabilities and related litigation. As of September 30, 2023, and December 31, 2022, the Company was not aware of any material asserted or unasserted claims in connection with these indemnity obligations.

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Performance and Payment Bonds

Many customers, particularly in connection with new construction within Infrastructure, require the Company to post performance and payment bonds issued by a financial institution known as a surety. If the Company fails to perform under the terms of a contract or to pay subcontractors and vendors who provided goods or services under a contract, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for any expenses or outlays it incurs. To date, the Company is not aware of any losses to their sureties in connection with bonds the sureties have posted on their behalf, and do not expect such losses to be incurred in the foreseeable future. Generally, 10% of bonding needs are held in cash on the balance sheet.

Concentration of Credit Risk

The Company maintains accounts with financial institutions. All cash in checking accounts is fully insured by the FDIC up to a $250,000 limit. At times, cash balances may exceed the maximum coverage provided by the FDIC on insured depositor accounts. The Company believes it mitigates its risk by depositing its cash and cash equivalents with major financial institutions.

Major Customer Concentration

There was one customer whose individual accounts receivable represented 10% or more of the Company’s total balance as of September 30, 2023. The Company had three customers whose accounts receivable individually represented 10% or more of the Company’s total balance as of December 31, 2022. In aggregate these customers accounted for approximately 46% of the Company’s total accounts receivable as of December 31, 2022.

The Company has two customers whose revenue individually represented 10% or more of the Company’s total revenue and whose revenue accounted for approximately 35% of the Company’s total revenue for the three months ended September 30, 2023. The Company has one customer whose revenue represented 10% or more of the Company’s total revenue, which accounted for 14% of the Company’s total revenue for the nine months ended September 30, 2023. The Company had two customers whose revenue individually represented 10% or more of the Company’s total revenue and, in aggregate, accounted for approximately 32% and 29% of the Company’s total revenue for the three and nine months ended September 30, 2022, respectively.

Labor Concentration

One of our operating subsidiaries within Infrastructure sources direct labor from local unions, which have collective bargaining agreements expiring at various times over the next four years. Although the Company’s past experience has been favorable with respect to resolving conflicting demands with these unions, it is possible that contract negotiations are unsuccessful which could impact the renewal of the collective bargaining agreements and availability of personnel.

Note 16. Income taxes

The following table includes the Company’s income (loss) before income tax provision benefit (expense), income tax provision (benefit) and effective benefit tax rate for the periods indicated:

	Three Months Ended September 30,
	2023			2022 (As Adjusted)
Income (loss) before income taxes	$	(6,210	)	$	16,173
Income tax benefit (expense)		(741	)		8
Effective tax rate		(11.9	)%		(0.0	)%

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	Nine Months Ended September 30,
	2023			2022 (As Adjusted)
Income (loss) before income taxes	$	(23,916	)	$	(12,341	)
Income tax benefit (expense)		(1,093	)		1,336
Effective tax rate		(4.6	)%		10.8	%

For the three and nine months ended September 30, 2023, and 2022, the Company utilized the discrete effective tax rate method. This discrete method treats the year-to-date period as if it was the annual period and calculates the income tax expense or benefit on a discrete basis. Currently, the Company believes the use of the discrete method represents the best estimate of its annual effective tax rate. The Company’s effective tax rate differed from the statutory rate primarily due to the valuation allowance on deferred tax assets, as well as the Company’s permanent book-tax differences from stock-based compensation and state income taxes net of federal benefit.

Note 17. Net income (loss) per share

Basic income (loss) per share available to common stockholders is calculated using the weighted average number of common shares outstanding during the applicable period. Diluted net income (loss) per share available to common stockholders is calculated using the weighted average number of common shares outstanding plus the number of dilutive potential common shares outstanding during the applicable period. Dilutive potential common shares consist of the incremental common shares (i) issuable upon the vesting of outstanding restricted stock units and the exercise of outstanding stock options using the treasury stock method, (ii) contingently issuable assuming that the end of the reporting period is the end of the contingency period, and (iii) issuable for non-participating preferred stock using the if-converted method. Our warrants and some of our preferred stock are considered participating securities pursuant to the two-class method. Dilutive potential common shares are excluded from the calculation of diluted net income (loss) per share available to common stockholders if their effect is antidilutive.

The following potential common shares were excluded from the calculation of diluted net income (loss) per share available to common stockholders because their effect would have been antidilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Restricted stock units		325		-		368		154
Contingently issuable shares		-		-		493		1,685
Warrants		10,303		-		12,725		16,878
Stock options		51,755		25,122		51,478		48,906
Preferred stock		38,852		-		37,856		16,951
Convertible notes payable		-		-		-		33,250
Total		101,235		25,122		102,920		117,824

Note 18. Subsequent Events

Events occurring after September 30, 2023, and through the date that these consolidated financial statements were issued, were evaluated to ensure that any subsequent events that met the criteria for recognition have been included.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion and analysis of our financial condition and results of operations in conjunction with our current report on Form 8-K filed on May 10, 2023 (the “May 10, 2023 Form 8-K”) and our audited financial statements and related notes included in our Annual Report on Form 10-K for the year ending December 31, 2022, filed on March 15, 2023 (our "2022 Form 10-K"). This discussion and other parts of this report contain forward-looking statements that involve risks and uncertainties, such as statements of our plans, objectives, expectations and intentions. Our actual results could differ materially from those discussed in these forward-looking statements.

Throughout this Quarterly Report on Form 10-Q, the terms “Charge,” “we,” “our,” or “us” refer to Charge Enterprises, Inc. and its subsidiaries on a consolidated basis, unless stated or the context implies otherwise. The use of the term the “Company,” “partner,” or “partnering” in this report does not mean or imply a formal legal partnership and is not meant in any way to alter the terms of Charge’s relationship with any third parties.

Overview

Charge Enterprises, Inc. (the “Company” or “Charge”) is an electrical, broadband and electric vehicle (“EV”) charging infrastructure company that provides clients with end-to-end project management services, from advising, designing, engineering, acquiring and installing equipment, to monitoring, servicing, and maintenance. Our vision is to be a leader in enabling the next wave of transportation and connectivity. By building, designing, and operating seamless infrastructure for charging EVs and high-speed broadband, we aim to create a future where transportation is safe, reliable, clean, efficient, and connected.

The Company has two operating segments which also represent the Company’s reportable segments:

● Infrastructure, which has a primary focus on EV charging (“EVC”), broadband, including cell tower, small cell, and in-building applications, and electrical contracting services.

● Telecommunications, which provides connection of voice calls, Short Message Services (“SMS”), and data to global carriers.

Infrastructure

Infrastructure’s focus is to implement end-to-end solutions for customers that are custom designed to enhance connectivity, productivity, reduce the cost of operations, and improve the efficiency of commercial operations for our customers and their consumers. Our Infrastructure segment comprises several different offerings: Broadband & Wireless, Electrical Contracting Services, Electric Vehicle Charging and Fleet Services.

Telecommunications

Telecommunications provides routing of voice, data, and SMS to Carriers and Mobile Network Operators (“MNO”) globally and operates through our wholly owned subsidiary PTGi International Carrier Services, Inc. (“PTGi”). Our Telecommunications business has contractual relationships with service providers in over 45 countries primarily within Asia, Europe, the Middle East, Africa, and North and South America. We provide customers with internet-protocol-based and time-division multiplexing (“TDM”) access for the transport of long-distance voice and data minutes.

We operate a global telecommunications network consisting of domestic switching and related peripheral equipment, carrier-grade routers, and switches for internet and circuit-based services. To ensure high-quality communications services, our network employs digital switching and fiber optic technologies, incorporates the use of voice-over-internet protocols and SS7/C7 signaling, and is supported by comprehensive network monitoring and technical support services.

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Comparability to Past Periods

During the first quarter of 2023, we elected to change our method for recognizing stock-based compensation expense from the graded vesting attribution method to the straight-line attribution method. This change resulted in the recognition of a cumulative benefit to stock-based compensation expense of approximately $18.1 million ($18.0 million, net of tax). Of this amount, approximately $0.3 million ($0.2 million, net of tax) was attributable to 2020, approximately $8.8 million ($7.8 million, net of tax) was attributable to 2021, and approximately $8.9 million ($10.0 million, net of tax) was attributable to 2022. The Company believes the straight-line attribution method is the predominant method used in its industry, more accurately reflects how awards are earned over its employees’ service periods, and better aligns the Company’s recognition of stock-based compensation expense with its peers. The effects of the change in accounting principle have been retrospectively applied to all periods presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations. Refer to “Change in Accounting Principle” in Part I, Item 1, Note 2 – “Summary of significant accounting policies” for additional information.

In 2023, we identified a misstatement related to our presentation of stock-based compensation in our consolidated statements of operations. Although determined to be immaterial, we elected to correct the immaterial misstatement and reclassified our stock-based compensation expense to the same financial statement line item as cash compensation paid to the same employees and non-employees. The reclassification, which was effective subsequent to the change in accounting principle discussed above, resulted in the elimination of the stock-based compensation financial statement line item and a corresponding increase in expense reported in the historical cost of sales, general and administrative, and salaries and related benefits financial statement line items. Refer to “Stock-based compensation reclassification” in Part I, Item 1, Note 2 – “Summary of significant accounting policies” for additional information.

Consolidated Results of Operations

Comparison of the Reported results for three and nine months ended September 30, 2023, and 2022

	Three Months Ended September 30,												Nine Months Ended September 30,
				2022 (As			Increase			% Increase						2022 (As			Increase			% Increase
(in thousands)	2023			Adjusted)			(Decrease)			(Decrease)			2023			Adjusted)			(Decrease)			(Decrease)
Revenues	$	132,277		$	185,857		$	(53,580	)		(29	)%	$	473,412		$	529,876		$	(56,464	)		(11	)%
Cost of sales		123,255			179,760			(56,505	)		(31	)%		450,353			512,143			(61,790	)		(12	)%
Gross profit		9,022			6,097			2,925			48	%		23,059			17,733			5,326			30	%
General and administrative		4,315			5,141			(826	)		(16	)%		14,854			17,200			(2,346	)		(14	)%
Salaries and related benefits		8,890			7,850			1,040			13	%		27,173			23,597			3,576			15	%
Professional fees		1,006			666			340			51	%		1,918			2,578			(660	)		(26	)%
Depreciation and amortization expense		1,172			433			739			171	%		3,574			1,745			1,829			105	%
Income (loss) from operations		(6,361	)		(7,993	)		1,632			20	%		(24,460	)		(27,387	)		2,927			11	%
Other income (expenses)		151			24,166			(24,015	)		(99	)%		544			15,046			(14,502	)		(96	)%
Income tax (expense) benefit		(741	)		8			(749	)		(9,363	)%		(1,093	)		1,336			(2,429	)		(182	)%
Net income (loss)	$	(6,951	)	$	16,181		$	(23,132	)		(143	)%	$	(25,009	)	$	(11,005	)	$	(14,004	)		(127	)%

38

Revenues

Revenues for the three-month period decreased $53.6 million to $132.3 million, compared with 2022. Revenues for the nine-month period decreased $56.5 million to $473.4 million, compared with 2022. The 29% decrease in revenue for the three months ended September 30, 2023 and 11% decrease in revenue for the nine months ended September 30, 2023 was driven by a decrease in wholesale traffic volumes within Telecommunications offset by increases in the revenues of electrical contracting services and EV charging installations within Infrastructure.

Cost of sales

Costs of sales decreased $56.5 million to $123.3 million for the three-month period and decreased $61.8 million to $450.4 million for the nine-month period, compared with 2022. The decrease in cost of sales in both periods was associated with the decrease in customer revenue. Overall gross margin percentage increased in both periods versus the prior year driven by the mix of revenue between businesses and the mix of projects in Infrastructure.

General and administrative

General and administrative expenses decreased $0.8 million to $4.3 million for the three-month period and decreased $2.3 million to $14.9 million for the nine-month period, compared to 2022. The decrease in both periods was driven primarily by a decrease in stock compensation expense of $0.9 million and $3.4 million in the three and nine-month periods, respectively, partially offset by higher insurance expense in the three-month period and higher insurance and other public company costs in the nine-month period.

Salaries and benefits

Salaries and benefits increased $1.0 million to $8.9 million for the three-month period and increased $3.6 million to $27.2 million for the nine-month period, compared to 2022. The increase was principally attributable to investments in personnel in the Infrastructure and Corporate segments to support our Company’s growth partially offset by a decrease in stock compensation of $0.1 million in the three month period and $0.6 million in the nine month periods.

Professional fees

Professional fees increased $0.3 million to $1.0 million for the three-month period and decreased $0.7 million for the nine-month period, compared to 2022. The increase in the three-month period was primarily related to approximately $0.5 million in non-recurring legal fees and the decrease in the nine month period was primarily related to higher legal and accounting fees in the prior year related to acquisitions and our uplist to Nasdaq in the first and second quarter of 2022.

Depreciation and amortization expense

Depreciation and amortization expense increased $0.7 million to $1.2 million for the three-month period and increased $1.8 million for the nine-month period, compared to 2022. The increase was driven by amortization of intangible assets associated with the acquisitions of ANS, BW, and EV Depot.

Other income (expense)

Other income (expense) decreased by $24.0 million to $0.2 million for the three-month period and decreased $14.5 million to $0.5 million for the nine-month period compared to 2022.

The decrease in the three month period was driven primarily by a decrease in the gain related to the change in the fair value of derivative liabilities of $28.6 million and an increase in debt amortization costs of $0.5 million, partially offset by higher investment income of $0.9 million, a gain on the sale of intellectual property of $0.5 million in the current period and a decrease in the loss on contingent liability of $3.4 million compared to the prior year.

The decrease in the nine month period was driven primarily by a decrease in the gain related to the change in the fair value of derivative liabilities of $27.0 million, partially offset by a decrease in amortization of debt discount of $5.0 million and interest expense of $0.5 million as a result of the redemption of convertible stock in 2022, increase in investment income of $3.0 million, a decrease in the loss on contingent liability of $2.7 million compared to the prior year and a gain on the sale of intellectual property of $1.1 million in the current period.

Income tax benefit

The Company incurred income tax expense in the three and nine months ended September 30, 2023, compared to an income tax benefit in the three and nine months ended September 30, 2002, primarily due to an increase of the valuation allowance on deferred tax assets in the current quarter. The Company placed a full valuation allowance on its deferred tax assets in the fourth quarter of 2022.

Segment Results of Operations

Infrastructure

Comparison of the reported results for three and nine months ended September 30, 2023, and 2022

	Three Months Ended September 30,												Nine Months Ended September 30,
				2022 (As			Increase			% Increase						2022 (As			Increase			% Increase
(in thousands)	2023			Adjusted)			(Decrease)			(Decrease)			2023			Adjusted)			(Decrease)			(Decrease)
Revenues	$	31,795		$	26,753		$	5,042			19	%	$	89,246		$	71,804		$	17,442			24	%
Cost of sales		23,600			21,607			1,993			9	%		68,619			57,538			11,081			19	%
Gross profit		8,195			5,146			3,049			59	%		20,627			14,266			6,361			45	%
General and administrative		1,485			1,369			116			8	%		4,418			4,115			303			7	%
Salaries and related benefits		4,867			4,468			399			9	%		14,750			12,615			2,135			17	%
Professional fees		19			70			(51	)		(73	)%		127			212			(85	)		(40	)%
Depreciation and amortization expense		1,166			391			775			198	%		3,539			1,618			1,921			119	%
Income (loss) from operations		658			(1,152	)		1,810			157	%		(2,207	)		(4,294	)		2,087			49	%
Other income (expenses)		(146	)		(92	)		(54	)		(59	)%		29			(906	)		935			103	%
Income tax (expense) benefit		(741	)		(91	)		(650	)		(714	)%		(1,093	)		14			(1,107	)		(7,907	)%
Net income (loss)	$	(229	)	$	(1,335	)	$	1,106			83	%	$	(3,271	)	$	(5,186	)	$	1,915			37	%

Revenues

Revenues increased $5.0 million to $31.8 million for the three-month period and increased $17.4 million to $89.2 million for the nine-month period, compared with 2022. The increase in the three and nine-month periods was driven by growth related to electrical contracting services and higher revenues in our EV charging infrastructure business, both organically and through the recent acquisition of Greenspeed, which was partially offset by lower revenue within broadband and wireless as a result of lower spending by wireless broadband companies.

39

Cost of sales

Costs of sales increased $2.0 million to $23.6 million for the three-month period and increased $11.1 million to $68.6 million for the nine-month period, compared with 2022, driven by the increase in revenues. Gross margin percentage increased in both periods, compared with 2022, driven by the mix of revenue between businesses and the mix of projects within the businesses, primarily in our electrical contracting services business.

General and administrative

General and administrative expenses increased $0.1 million to $1.5 million for the three-month period and increased $0.3 million to $4.4 million for the nine-month period, compared to 2022. The change in both periods was driven primarily by investments made in the EV charging infrastructure business partially offset by lower stock compensation expense.

Salaries and related benefits

Salaries and benefits increased $0.4 million to $4.9 million for the three-month period and increased $2.1 million to $14.8 million for the nine-month period, compared to 2022. The increase in both periods was driven by higher headcount across all Infrastructure businesses to support growth, offset by lower stock compensation expense.

Professional fees

Professional fees in both the three-month and nine-month periods were consistent with 2022. 

Depreciation and amortization expense

Depreciation and amortization expense increased $0.8 million to $1.2 million for the three-month period and increased $1.9 million to $3.5 million for the nine-month period, compared to 2022. The increase in both periods was driven by amortization of intangible assets associated with the acquisitions of ANS, BW, and EV Depot.

Other income (expense)

Other income (expense) for the three-month period decreased by $0.1 million from an expense of $0.1 million in 2022. Other income (expense) for the nine-month period increased by $0.9 million from an expense of $0.9 million in 2022. 

For the three-month and nine-month periods, the expense was driven primarily by an investment loss. 

Income tax benefit

The Company incurred income tax expense for the three months ended September 30, 2023 and September 30, 2022. For the nine months ended September 30, 2023 the Company had an income tax expense, primarily due to an increase of the valuation allowance on deferred tax assets. The Company placed a full valuation allowance on its deferred tax assets in the fourth quarter of 2022.

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Telecommunications

Comparison of the reported results for three and nine months ended September 30, 2023, and 2022

	Three Months Ended September 30,											Nine Months Ended September 30,
			2022 (As			Increase			% Increase						2022 (As			Increase			% Increase
(in thousands)	2023		Adjusted)			(Decrease)			(Decrease)			2023			Adjusted)			(Decrease)			(Decrease)
Revenues	$	100,482	$	159,104		$	(58,622	)		(37	)%	$	384,166		$	458,072		$	(73,906	)		(16	)%
Cost of sales		99,655		158,153			(58,498	)		(37	)%		381,734			454,605			(72,871	)		(16	)%
Gross profit		827		951			(124	)		(13	)%		2,432			3,467			(1,035	)		(30	)%
General and administrative		507		514			(7	)		(1	)%		1,670			1,677			(7	)		(0	)%
Salaries and related benefits		198		187			11			6	%		723			794			(71	)		(9	)%
Professional fees		8		27			(19	)		(70	)%		33			63			(30	)		(48	)%
Depreciation and amortization expense		6		42			(36	)		(86	)%		35			127			(92	)		(72	)%
Income (loss) from operations		108		181			(73	)		(40	)%		(29	)		806			(835	)		(104	)%
Other income (expenses)		808		(4	)		812			20,300	%		1,433			69			1,364			1,977	%
Income tax (expense) benefit		-		(255	)		255			100	%		-			(3	)		3			100	%
Net income (loss)	$	916	$	(78	)	$	994			1,274	%	$	1,404		$	872		$	532			61	%

Revenues

Revenues decreased $58.6 million to $100.5 million for the three-month period and decreased $73.9 million to $384.2 million for the nine-month period, compared with 2022. The decrease in both periods was due to an overall decrease in wholesale traffic volumes compared to 2022 driven by lower voice demand. The rapid development of new technologies, services, and products has eliminated many of the traditional distinctions among wireless, cable, internet, local, and long-distance communication services. The Company continues to expect downward pressure on revenues over time due to the pace of technology development, emergence of new products, and intense competition.

Cost of sales

Cost of sales decreased $58.5 million to $99.7 million for the three-month period and decreased $72.9 million to $381.7 million for the nine-month period, compared to 2022, driven by the decrease in customer revenue. Gross margin percentage in this business increased in the three-month period and decreased in the nine-month period year over year due to customer mix.

General and administrative

General and administrative expense in both the three and nine-month periods was consistent with 2022.

Salaries and related benefits

Salaries and benefits for the three and nine month period were consistent with 2022.

Professional fees

Professional fees in both the three and nine-month periods were consistent with 2022.

41

Depreciation and amortization expense

Depreciation and amortization expense decreased $0.1 million for the nine-month period, compared to 2022. The decrease was driven by assets reaching their full depreciation in prior periods.

Other income (expense)

Other income (expense) increased by $0.8 million to $0.8 million other income for the three-month period and increased $1.4 million to $1.4 million other income for the nine-month period, compared to 2022.

For the three-month period, the income in 2023 was driven by a gain on the sale of intellectual property of $0.5 million, interest income of $0.2 million and a gain on Foreign Exchange (“FX”) of $0.1 million. 

For the nine-month period, the income in 2023 was driven by a gain on the sale of intellectual property of $1.3 million, interest income of $0.2 million partially offset by a loss on FX of $0.1 million. The income in 2022 was driven primarily by a gain on the sale of intellectual property of $0.2 million offset by an FX loss of $0.1 million.

Income tax benefit

The Company did not incur income tax expense in the three and nine months ended September 30, 2023, compared to an income tax expense for the three months ended September 30, 2022, primarily due to an increase of the valuation allowance on deferred tax assets. The Company placed a full valuation allowance on its deferred tax assets in the fourth quarter of 2022.

Non-operating Corporate Segment

Comparison of the reported results for three and nine months ended September 30, 2023, and 2022

	Three Months Ended September 30,												Nine Months Ended September 30,
				2022 (As			Increase			% Increase						2022 (As			Increase			% Increase
(in thousands)	2023			Adjusted)			(Decrease)			(Decrease)			2023			Adjusted)			(Decrease)			(Decrease)
Revenues	$	-		$	-		$	-			-		$	-		$	-		$	-			-
Cost of sales		-			-			-			-			-			-			-			-
Gross profit		-			-			-			-			-			-			-			-
General and administrative		2,323			3,258			(935	)		(29	)%		8,766			11,408			(2,642	)		(23	)%
Salaries and related benefits		3,825			3,195			630			20	%		11,700			10,188			1,512			15	%
Professional fees		979			569			410			72	%		1,758			2,303			(545	)		(24	)%
Income (loss) from operations		(7,127	)		(7,022	)		(105	)		(1	)%		(22,224	)		(23,899	)		1,675			7	%
Other income (expenses)		(511	)		24,262			(24,773	)		(102	)%		(918	)		15,883			(16,801	)		(106	)%
Income tax (expense) benefit		-			354			(354	)		(100	)%		-			1,325			(1,325	)		(100	)%
Net income (loss)	$	(7,638	)	$	17,594		$	(25,232	)		(143	)%	$	(23,142	)	$	(6,691	)	$	(16,451	)		(246	)%

General and administrative

General and administrative expenses decreased $0.9 million to $2.3 million for the three-month period and decreased $2.6 million to $8.8 million for the nine-month period, compared to 2022. The decrease was driven primarily by a decrease in stock compensation expense of $0.9 million and $2.6 million in the three and nine-month periods, respectively.

Salaries and related benefits

Salaries and benefits increased $0.6 million to $3.8 million for the three-month period and increased $1.5 million to $11.7 million for the nine-month period, compared to 2022. The increase in both periods was driven by investments in personnel to support the Company’s growth.

Professional fees

Professional fees increased $0.4 million to $1.0 million for the three-month period and decreased $0.6 million to $1.8 million for the nine-month period, compared to 2022. The increase in the three-month period was primarily related to approximately $0.5 million in non-recurring legal fees and the nine-month decrease was primarily related to higher legal and accounting fees in the prior year related to acquisitions and our uplist to Nasdaq in the first and second quarter of 2022.

Other income (expense)

Other income (expense) for the three-month period decreased by $24.8 million from an income of $24.3 million in 2022 to an expense of $0.5 million in 2023. Other income (expense) for the nine-month period decreased by $16.8 million from an income of $15.9 million in 2022 to an expense of $0.9 million in 2023. 

For the three-month period, the expense in 2023 was driven primarily by debt amortization costs of $1.0 million and interest expense of $0.5 million, offset by a gain in investment income of $0.8 million and a gain in fair value of derivative liabilities of $0.1 million. The income in 2022 was driven primarily by a gain on change in the fair value of derivative liabilities of $28.7 million partially offset by a loss on contingent liabilities of $3.4 million, debt amortization costs of $0.5 million and interest expense of $0.5 million. 

For the nine-month period, the expense in 2023 was driven primarily by debt amortization costs of $3.0 million and interest expense of $1.5 million, offset by a gain in fair value of derivative liabilities of $1.7 million and an investment gain of $1.4 million and insurance revenue of $0.3 million. The income in 2022 was driven primarily by a change in the fair value of derivative liabilities of $28.7 million partially offset by debt amortization costs of $7.9 million, a loss on contingent liability of $2.7 million, interest expense of $2.0 million, and an investment loss of $0.4 million.

Income tax benefit

The Company did not incur income tax expense in the three and nine months ended September 30, 2023, compared to an income tax benefit for the three and nine months ended September 30, 2022, primarily due to an increase of the valuation allowance on deferred tax assets in the current quarter. The Company placed a full valuation allowance on its deferred tax assets in the fourth quarter of 2022.

Liquidity and Capital Resources

Our primary sources of liquidity are operating cash flows and private placement of equity and debt. In order to finance acquisitions, throughout 2020 and 2021, we issued preferred shares, convertible and non-convertible promissory notes. During 2022, all convertible notes, in the amount of $12.5 million, were either exchanged for Series D preferred stock or sold to an unrelated third party and converted to common stock. As a result, we no longer have any convertible notes payable outstanding at September 30, 2023, and December 31, 2022. Outstanding non-convertible notes issued on May 19, 2021 (the “May 2021 Notes”) and December 17, 2021 (the “December 2021 Notes” and, together, the “Notes”) in the aggregate amount of $27.8 million will mature on November 19, 2023. We plan to pay the full amount due on or before the maturity date.

On August 11, 2023, we entered into a Securities Purchase Agreement with KORR Value, L.P. (the “August 2023 SPA”), pursuant to which, beginning on October 15, 2023 and through March 31, 2024, the Company has the right, but not the obligation, to sell to the purchaser, and to require the purchaser to purchase, up to $5.0 million of common stock, at a purchase price of $1.00 per share. Kenneth Orr, a beneficial owner of more than 5% of the Company’s common stock and the former Chairman of the Company, has sole voting and dispositive power over the shares held by KORR Value, L.P. To date, we have not exercised our right and have not sold any shares pursuant to the August 2023 SPA.

We assess our liquidity in terms of our ability to generate cash to fund our short-term and long-term cash requirements. We believe that our business will continue to generate cash flows from operating activities, and these cash flows, together with our existing cash and cash equivalents, and our ability to draw on current credit facilities, provide us with sufficient resources to meet our current operating liquidity, debt service requirements and capital requirements for operations over the next 12 months. From time to time, we invest excess liquidity in money market funds or other interest-bearing accounts. When such investments are made, we do not believe that we have any material exposure with respect to these assets. In the event that our plans change, or our cash requirements are greater than we anticipate, we may need to access the capital markets to finance our future cash requirements. However, there can be no assurance that such financing will be available to us should we need it or, if available, that the terms will be satisfactory to us and not dilutive to existing shareholders.

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Funding

On February 25, 2022, we entered into a securities purchase agreement with Island Capital Group Charge Me LLC (the “February 2022 Investors”) pursuant to which we issued Series C preferred shares in an aggregate face value of $12.1 million and aggregate purchase price of $10.8 million (“Series C preferred stock”). We valued and recorded the beneficial conversion feature of the Series C preferred stock resulting in a deemed dividend at the time of issuance. At September 30, 2023, and December 31, 2022, we have 6,226,370 shares of Series C preferred stock issued and outstanding.   

On December 17, 2021, we entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “December 2021 Investors”) pursuant to which we issued a note payable in an aggregate face value of $15.9 million for an aggregate purchase price of $13.3 million (the “December 17, 2021 Notes”). The December 17, 2021 Notes have a coupon of 7.5% per annum and a maturity date of November 19, 2023. On December 17, 2021, we issued 2,370,370 shares of Series C Preferred (“Series C preferred stock”) to Arena Investors LP as part of the securities purchase agreement at an aggregate purchase price of $6.7 million. In connection with the issuance of the Series C preferred stock, we also issued warrants to purchase 2,370,370 shares of our common stock at a price of $4.00 per share.

On May 19, 2021, we entered a securities purchase agreement with funds affiliated with Arena Investors LP (the “May 2021 Investors”) pursuant to which we issued: (i) convertible notes in an aggregate principal amount of $5.6 million for an aggregate purchase price of $5.0 million that are convertible at any time, at the holder’s option, into shares of our common stock at a conversion price of $4.00 per share and mature on May 19, 2024 (the “May 19, 2021 Convertible Notes”); and (ii) non-convertible notes payable in an aggregate face value of $11.9 million for an aggregate purchase price of $10.0 million (the “May 19, 2021 Notes”). The May 19, 2021 Notes includes a 7.5% premium and 10% original issue discount, a coupon of 8.0% per annum and were originally set to mature on November 19, 2022. The maturity date was subsequently extended to November 19, 2023. In connection with this extension, we issued to the May 2021 Investors warrants to acquire 1,870,000 shares of common stock at a price of $4.00 per share.

On November 3, 2020, we entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “November 2020 Investors”) pursuant to which we issued convertible notes in an aggregate principal amount of $3.9 million for an aggregate purchase price of $3.5 million (the “November 2020 Convertible Notes). In connection with the issuance of the November 2020 Convertible Notes, we issued to the November 2020 Investors 903,226 shares of common stock. The November 2020 Convertible Notes were convertible at any time, at the holder’s option, into shares of our common stock at a conversion price of $0.25 per share.

On May 8, 2020, we entered into a securities purchase agreement with certain institutional investors (collectively, the “May 2020 Investors”) pursuant to which we issued convertible notes in an aggregate principal amount of $3.0 million for an aggregate purchase price of $2.7 million (the “May 2020 Convertible Notes”). In connection with the issuance of the May 2020 Convertible Notes, we issued to the May 2020 Investors warrants to purchase an aggregate of 7,600,000 shares of common stock (collectively, the “Warrants”) and 7.5 shares of series G convertible preferred stock (the “Series G preferred stock”). The May 2020 Convertible Notes’ maturity date of May 8, 2021 was extended to May 8, 2023, unless earlier converted. The May 2020 Convertible Notes accrue interest at a rate of 8% per annum, subject to increase to 20% per annum upon and during the occurrence of an event of default. Interest was payable in cash on a quarterly basis beginning on December 31, 2020. The May 2020 Convertible Notes were convertible at any time, at the holder’s option.

During the year ended December 31, 2022, we entered into a non-cash exchange agreement with funds affiliated with the November 2020 Investors and the May 2020 Investors pursuant to which we issued 1,177,023 shares of Series D preferred stock (“Series D preferred stock”) in exchange for the November 2020 Convertible Notes, the May 2020 Convertible Notes, and the May 2021 Convertible Notes, totaling $12.5 million. At September 30, 2023, and December 31, 2022, we no longer have any convertible notes outstanding.

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In connection with the Series D preferred stock, we entered into an agreement with the Arena Investors pursuant to which the holder of the 11.8 million outstanding warrants to purchase common stock was allowed to exercise for shares of a to-be-issued class of preferred stock. Pursuant to this provision on March 14, 2023, the Arena Investors exercised the warrants issued May 2020 (the “May 2020 Warrants”) into: (i) 4.4 million shares of common stock; and (ii) 3.2 million shares of Series E preferred stock (“Series E preferred stock”). The proceeds from the issuance of the Series E preferred stock were $1.6 million and the proceeds from the exercise of warrants was $2.2 million.

Our subsidiary ANS has an $8.0 million line of credit (the “ANS Line of Credit”), which we and our subsidiary Charge Infrastructure Holdings, Inc. guarantee. Interest on the ANS Line of Credit is payable monthly at the Wall Street Journal prime rate. During the nine months ended September 30, 2023, we borrowed $4.7 million under the ANS Line of Credit and made payments against the ANS Line of Credit of $9.7 million. As a result of this activity, we have no amounts outstanding under the ANS Line of Credit at September 30, 2023. The ANS Line of Credit has a termination date of October 31, 2024.

On November 18, 2022, our subsidiaries Nextridge and ANS renewed a $750,000 equipment and vehicle line of credit available with a bank. Interest is payable monthly at the Wall Street Journal prime rate. On December 1, 2023, the line will convert to a term loan with the then five-year Federal Home Loan Bank rate + 2.5% and have a five-year term with a five-year amortization. There are no financial commitments or covenants on the line of credit. As of September 30, 2023, and December 31, 2022, we have no amounts outstanding under this line of credit.

Our subsidiary BW had a $3.0 million line of credit (the “BW Line of Credit”), which we and our subsidiary Charge Infrastructure Holdings, Inc. guaranteed. Interest on the BW Line of Credit was payable monthly at the Wall Street Journal prime rate. During the nine months ended September 30, 2023, we did not borrow under the BW Line of Credit. We had no amounts outstanding under the BW Line of Credit at September 30, 2023. Effective July 26, 2023, BW renewed the facility with substantially the same terms and an expiration of August 1, 2024.

Liquidity

As of September 30, 2023, we had $27.8 million aggregate principal amount outstanding under the May 2021 Notes and the December 2021 Notes. As of September 30, 2023, we have no amounts outstanding under the ANS Line of Credit or the BW Line of Credit. As of September 30, 2023, total liquidity was $68.3 million, which was comprised of $51.4 million in cash and cash equivalents, $5.9 million of marketable securities, $8.0 million available under the ANS Line of Credit, and $3.0 million available under the BW Line of Credit. We may also use our capital resources to repurchase shares of our common stock, to pay dividends to our stockholders, and to make acquisitions.

On August 1, 2023, the Company completed the acquisition of Greenspeed for up to $15.0 million, net of closing adjustments, which includes $6.0 million in cash consideration reduced for certain transaction expenses and working capital adjustments, $2.0 million in equity consideration at closing, and a performance-based earn out over the next two years of up to $7.0 million. We recorded the performance based earn-out as a contingent consideration liability of approximately $5.8 million on the acquisition date.

As discussed above, we have $5.0 million of additional liquidity available to us through March 2024 pursuant to the August 2023 SPA.

Cash Requirements

As discussed above, based on our current and available future liquidity, we expect to have sufficient resources to meet our current operating liquidity and capital requirements for the next 12 months, including after accounting for the repayment of the $27.8 million that comes due and payable under the Notes on November 19, 2023. We are also exploring opportunities to enter into new debt and / or equity facilities with an alternative financing source to refinance the Notes. Although we expect to have sufficient resources to meet our near-term needs, in the event that our plans change, or our cash requirements are greater than we anticipate, we may need to access the capital markets or obtain other sources of debt funding to finance future cash requirements. However, there can be no assurance that such financing will be available to us should we need it or, if available, that the terms will be satisfactory to us and not dilutive to existing stockholders.

Moreover, certain holders of the Notes advised us, during our June 2023 discussions with them related to refinancing or repaying the Notes, that in their view, certain provisions of the securities purchase agreements pursuant to which they purchased the Notes and other of the Company’s securities, prohibit the Company from refinancing the Notes and from incurring additional indebtedness following repayment of the Notes without their consent. Additionally, during further discussions, the holders have raised issues relating to the Company's guarantees of its subsidiaries' indebtedness, which, in their view, could constitute a breach of the securities purchase agreements and defaults under the Notes and result in the application of default interest rates (20%) and other monetary penalties. We disagree with these positions and believe we have valid defenses, and we intend to take appropriate action to preserve the Company’s rights. We are attempting to resolve these disagreements amicably through ongoing discussions, but an inability to resolve these disputes would likely increase the costs of refinancing or repayment or hinder our ability to refinance or amend the Notes or otherwise obtain new debt financing to fund our longer-term operations and acquisition strategy. Moreover, an inability to reach resolution could also lead to litigation with the holders of the Notes, whether brought by us or against us. Any such litigation could be expensive, time-consuming, and distracting and no assurance can be provided that the outcome would be satisfactory. See Risk Factors - “We are subject to significant restrictive covenants and other provisions under the agreements governing our indebtedness, preferred stock and warrants.” and “We may be party to legal proceedings that could have a material adverse effect on the Company’s liquidity, financial position, and results of operations, as well as its reputation.” in Part II, Item 1A of this report.

Our longer-term liquidity needs (i.e., more than 12 months from the date of this filing) include cash necessary to support our business growth, to pay our debt service costs, which will vary based on the amount of principal outstanding and the interest rate on such amounts, and to continue to pay annual dividends on our issued and outstanding Series C and Series D preferred stock of approximately $1.5 million. Additionally, pursuant to the Greenspeed acquisition agreement, we may be required to pay up to $3.5 million in earn out payments in each of the next two years if certain EBITDA targets are met by the Greenspeed business.

Cash Flows

The following table summarizes our cash flow activity, as reported within the consolidated statements of cash flows, followed by a discussion of the major drivers impacting operating, investing, and financing cash flows:

	Nine Months Ended September 30,
(in thousands)	2023			2022
Total cash provided by (used in):
Operating activities	$	27,229		$	(2,917	)
Investing activities		166			484
Financing activities		(2,530	)		20,386
Effect of foreign currency exchange rates on cash and cash equivalents		(343	)		45
Net increase in cash and cash equivalents	$	24,522		$	17,998

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Cash Flows from Operating Activities

Cash flows provided by operating activities were $27.2 million for the nine months ended September 30, 2023. Cash flows used in operating activities were $2.9 million for the nine months ended September 30, 2022. The increase in cash flows provided by operating activities was primarily due to the increase of cash provided by net working capital in 2023 of $35.1 million, compared with $4.2 million cash provided by net working capital in 2022. This increase was partially offset by a decrease in net income adjusted for non-cash items of $0.7 million. We anticipate the acquisition of Greenspeed to be accretive to our cash flows from operations in the first full year of ownership.

Cash Flows from Investing Activities

Cash flows provided by investing activities were $0.2 million for the nine months ended September 30, 2023. Cash flows provided by investing activities were $0.5 million for the nine months ended September 30, 2022. The decrease in cash flows provided by investing activities is primarily due to: (i) a decrease in cash proceeds from the sale of marketable securities of $17.2 million; and (ii) an increase in cash outflows for acquisitions of $3.7 million. These decreases in cash flows provided by investing activities were partially offset by: (i) a decrease in purchases of marketable securities of $17.7 million; (ii) an increase in cash acquired in acquisitions of $1.7 million; and (iii) an increase in proceeds from sales of intellectual property of $1.1 million.  

Cash Flows from Financing Activities

Cash flows used in financing activities were $2.5 million for the nine months ended September 30, 2023. Cash flows provided by financing activities were $20.4 million for the nine months ended September 30, 2022. The cash flows provided by financing activities decreased primarily due to: (i) a reduction in proceeds from borrowing under revolving lines of credit of $14.1 million; (ii) a reduction in proceeds from the sale of common stock of $10.0 million; and (iii) a net reduction in proceeds from the issuance of preferred stock of $9.2 million. These reductions in cash flows provided by financing activities were partially offset by: (i) a decrease in payments against revolving lines of credit of $8.8 million; and (ii) an increase in proceeds from the exercise of warrants of $1.1 million.

Off-Balance Sheet Arrangements

As of September 30, 2023, the Company did not have any off-balance sheet arrangements.

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires us to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated financial statements and accompanying notes. “Note 2, Summary of significant accounting policies” to the Consolidated Financial Statements in our 2022 Form 10-K describes the significant accounting policies and methods used in the preparation of the consolidated financial statements. Our critical accounting estimates, identified in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 of our 2022 Form 10-K, are stock-based compensation, revenue recognition, leases, goodwill, and income taxes. Such accounting policies and estimates require significant judgments and assumptions to be used in the preparation of the consolidated financial statements, and actual results could differ materially from the amounts reported.

Recent Accounting Pronouncements

See Part I, Item 1, “Note 2, Summary of significant accounting policies” for a detailed description of recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk from fluctuations in interest rates and foreign currency exchange rates.

Interest Rate Risk

The Federal Reserve Board has been increasing interest rates, and it is anticipated that rate increases may continue throughout 2023. We are exposed to market risk from changes in interest rates on our variable-rate indebtedness (the ANS Line of Credit and BW Line of Credit). As of September 30, 2023, and December 31, 2022, we had $0.0 million and $5.0 million outstanding under the ANS Line of Credit, respectively, which bears interest at the Wall Street Journal prime rate (“Prime Rate”). As of September 30, 2023, and December 31, 2022, we did not have any outstanding balances on our BW Line of Credit, which bears interest at the Prime Rate.

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As of September 30, 2023, if our borrowing rates were to change by 1%: (i) interest expense on our ANS Line of Credit would increase or decrease, as applicable, by $0.1 million on an annual basis, assuming our entire $8.0 million balance under the ANS Line of Credit was outstanding; and (ii) interest expense on our BW Line of Credit would increase or decrease, as applicable, by $0.1 million on an annual basis, assuming our entire $3.0 million balance under the BW Line of Credit was outstanding. 

As of September 30, 2023, and December 31, 2022, we also had $27.8 million aggregate principal amount of fixed-rate senior notes payable (the “Notes Payable”) outstanding, which bear interest at a weighted average interest rate of 7.7%. Since our Notes Payable bear interest at fixed rates and are carried at amortized cost, fluctuations in interest rates do not have any impact on our consolidated financial statements. However, the fair value of the Notes Payable will fluctuate with movements in market interest rates, increasing in periods of declining interest rates and declining in periods of increasing interest rates. The Notes Payable are not subject to interest rate risk, but we may be subject to changes in interest rates if and when we refinance this debt at maturity or otherwise.

At this time, we have not entered into, but in the future we may enter into, derivatives or other financial instruments in an attempt to hedge our interest rate risk.

Foreign Currency Risk

In our Telecommunications business, we perform services in foreign countries, which have foreign currency risks related to our revenue and operating expenses denominated in currencies other than the U.S. dollar, primarily the Euro. Accordingly, changes in exchange rates, and in particular a weakening of the U.S. dollar, have negatively affected, and may continue to negatively affect, our revenue and other operating results as expressed in U.S. dollars.

We enter into transactions that are not denominated in their functional currency. We have experienced and will continue to experience fluctuations in our net income as a result of transaction gains or losses related to revaluing monetary asset and liability balances that are denominated in currencies other than the functional currency of the entities in which they are recorded. At this time, we have not entered into, but in the future, we may enter into, derivatives or other financial instruments in an attempt to hedge our foreign currency exchange risk. It is difficult to predict the effect hedging activities would have on our results of operations. A foreign currency exchange net loss of $0.0 million, and a foreign currency exchange net loss of $0.1 million were recognized during the three months ended September 30, 2023, and 2022, respectively. Foreign currency exchange net losses of $0.2 million and $0.1 million were recognized during the nine months ended September 30, 2023, and 2022, respectively. If the Euro had weakened or strengthened by 10% compared to the U.S. dollar, our foreign currency exchange losses for the three months ended September 30, 2023, would have an immaterial impact on the consolidated financial statements. Revenue from foreign currency represents approximately 3% of total revenue.

Translation gains or losses, which are recorded in other comprehensive income or loss, result from translation of the assets and liabilities of our foreign subsidiaries into US dollars. Foreign currency exchange net losses of $0.0 million were recognized during the three and nine months ended September 30, 2023, and 2022. If the Euro had weakened or strengthened by 10% compared to the U.S. dollar, our foreign currency exchange losses for the three months ended September 30, 2023 would not have increased or decreased materially.

This sensitivity analysis has inherent limitations. While our largest exposure is to the Euro, the analysis disregards the possibility that rates of multiple foreign currencies will not always move in the same direction relative to the value of the U.S. dollar.

Item 4. Controls And Procedures Evaluation of Disclosure Controls and Procedures

Our disclosure controls and procedures are designed to ensure that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

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Our management, with the participation and supervision of our Chief Executive Officer and our Chief Financial Officer, have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of such date, our disclosure controls and procedures were, in design and operation, effective at a reasonable assurance level.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(e) and 15d-15(e) of the Exchange Act that occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on Controls

Our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives as specified above. Management does not expect, however, that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and fraud. Any control system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

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Part II

OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we may be involved in litigation incidental to the conduct of our business. We are currently not a party to any legal proceedings that we believe would have a material effect on our business, financial position, results of operations or cash flows.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the risks that could materially affect our business, financial condition or results of operations. The following is an update to the Company's risk factors and should be read in conjunction with the risk factors previously disclosed under the caption “Risk Factors” in Part I, Item 1A of our 2022 Form 10-K.

We are subject to significant restrictive covenants and other provisions under the agreements governing our indebtedness, preferred stock and warrants.

The securities purchase agreements related to our outstanding Notes and the agreements governing our indebtedness contain various negative covenants that restrict our ability to, among other things:

● Incur additional indebtedness and guarantee indebtedness;

● Pay dividends or make other distributions, or repurchase or redeem capital stock;

● Prepay, redeem or repurchase debt or equity;

● Issue certain preferred stock;

● Make loans and investments;

● Sell, lease or otherwise dispose of assets;

● Acquire any assets or business;

● Incur liens;

● Enter into any transactions with affiliates;

● Issue common stock or common stock equivalents involving a variable rate transaction; and

● Consolidate, merge or sell all or substantially all of our assets

As discussed in Part I, Item 1. Note 9, Debt, we are also subject to certain affirmative covenants under the ANS and BW Lines of Credit, which, among other things, require us and our operating subsidiaries to maintain a specified debt service and debt to net worth or earnings ratios. Our ability to meet these financial ratios may be affected by events beyond our control and, as a result, there can be no assurance that we will be able to meet these ratios. Effective July 26, 2023, BW renewed the facility with substantially the same terms and an expiration of August 1, 2024.

Until February 25, 2025, the holders of our Series C preferred stock, our Series D preferred stock, and our warrants issued in April 2022 have the right to participate in future financings that involve the issuance of indebtedness, common stock or common stock equivalents. Such participation rights may restrict our ability to secure such financing unless the holders of such securities waive their right to participate or the party providing the financing accept the participation of the holders of the Series C preferred stock, the Series D preferred stock and the April 2022 warrants.

The securities purchase agreements entered into in December 2021 also contain a most-favored nations provision, such that if future issuances of securities by the Company are deemed to be on more beneficial terms (the “Other Securities”) to those provided for in the December 2021 transactions, the December 2021 investors may exchange their securities for Other Securities, which could result in increased dilution to our stockholders or reduced proceeds to the Company from existing securities.

Violation of these covenants would allow the counterparties to exercise their remedies under the respective agreement. In particular, violation of these covenants could constitute a default that would increase applicable interest rates payable by the Company, result in the obligation to pay other penalty fees or permit the relevant creditors to require the immediate repayment of the borrowings thereunder, which could result in a default under other debt instruments and agreements that contain cross-default provisions, including the Notes and ANS and BW lines of credit. A default under any of the agreements governing our indebtedness could materially adversely affect our financial condition and results of operations. We may seek waivers from compliance with these covenants and restrictive provisions to pursue our business strategy, which may not be granted on commercial terms or at all. As a result, we may be:

● Limited in how we conduct our business;

● Unable to raise additional debt or equity financing to operate during general economic or business downturns; or

● Unable to compete effectively or to take advantage of new business opportunities.

These restrictions could have a material adverse effect on liquidity and our ability to grow in accordance with our strategy and on the value of our equity securities.

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We may be unable to regain and maintain compliance with The Nasdaq Global Market continued listing requirements, which could cause our common stock to be delisted from The Nasdaq Global Market. This could result in the lack of a market for our common stock, cause a decrease in the value of an investment in Charge, and adversely affect our business, financial condition, and results of operations.

Our common stock is currently listed on The Nasdaq Global Market. To maintain the listing of our common stock on The Nasdaq Global Market, we are required to meet certain listing requirements, including, among others, a minimum closing bid price of $1.00 per share.

On August 22, 2023, we received notice from The Nasdaq Global Market that the closing bid price for Charge’s common stock had been below $1.00 per share for the previous 30 consecutive business days, and that we are therefore not in compliance with the minimum bid price requirement for continued inclusion on The Nasdaq Global Market under Nasdaq Listing Rule 5450(a)(1) (“Rule 5450(a)(1)”). The Nasdaq Global Market’s notice has no immediate effect on the listing or trading of our common stock on The Nasdaq Global Market.

The notice indicates that we will have 180 calendar days, until February 19, 2024, to regain compliance with this requirement. Charge can regain compliance with the $1.00 minimum bid listing requirement if the closing bid price of our common stock is at least $1.00 per share for a minimum of ten (10) consecutive business days during the 180-day compliance period.

If Charge does not regain compliance during the initial compliance period, we may be eligible for an additional 180-day period to regain compliance. To qualify, we would be required to meet the continued listing requirement for market value of our publicly held shares and all other Nasdaq initial listing standards, with the exception of the minimum bid price requirement under Rule 5450(a)(1), and we would need to provide written notice to Nasdaq of our intention to cure the deficiency during the second compliance period. If it appears to Nasdaq that we will not be able to cure the deficiency, or if we are otherwise not eligible, we expect that Nasdaq will notify us that our common stock will be subject to delisting. We will have the right to appeal a determination to delist our common stock, and our common stock will remain listed on The Nasdaq Global Market until the completion of the appeal process.

A delisting of our common stock could negatively impact us by, among other things, reducing the liquidity and market price of our common stock and reducing the number of investors willing to hold or acquire shares, which would further restrict our ability to obtain equity financing. A suspension or delisting could also adversely affect our reputation, our relationships with our business partners and suppliers, which would have a material, adverse impact on our business, operating results and financial condition. In addition, a suspension or delisting would impair our ability to raise additional capital through equity or debt financing as well as our ability to attract and retain employees by means of equity compensation.

Since the date of the Nasdaq notice, our common stock has continued to trade below $1.00 per share.  As of the date hereof, we had not regained compliance with Rule 5450(a)(1).

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We may be party to legal proceedings that could have a material adverse effect on the Company’s liquidity, financial position, and results of operations, as well as its reputation.

The Company has limited experience in litigation and other legal proceedings, but any lawsuit brought against us or any legal proceeding that we may bring to enforce our rights could result in substantial costs, divert the time and attention of our management, result in counterclaims (whether meritorious or as a litigation tactic), result in substantial monetary judgments or settlement costs and harm our reputation, any of which could seriously harm our business.

In addition, in the past, when the market price of a stock has been volatile, holders of that stock have instituted securities class action litigation against the company that issued the stock. Any lawsuit brought against us by one or more of our stockholders, could result in substantial costs to defend the lawsuit, divert the time and attention of our management, result in substantial monetary judgments or settlement costs and harm our reputation, any of which could seriously harm our business.

Further, as we continue to seek to expand, raise capital, grow our business and acquire new businesses, we have entered into, and expect to enter into in the future, agreements and instruments, such as the agreements related to our outstanding indebtedness, preferred stock and warrants, and various unit purchase agreements related to our business acquisitions, which are subject to interpretation and the potential for dispute. If we have disagreements with counterparties to our agreements or with holders of our outstanding securities and are unable to resolve any disagreements that may arise, such disagreements may result in lawsuits, other legal proceedings and/or protracted negotiations, including those whereby we seek to enforce our rights. For example, certain holders of the Notes advised us, during our June 2023 discussions with them related to refinancing or repaying the Notes, that in their view, certain provisions of the securities purchase agreements pursuant to which they purchased the Notes and other of the Company’s securities, prohibit the Company from refinancing the Notes and from incurring additional indebtedness following repayment of the Notes without their consent. Additionally, during further discussions, the holders have raised issues relating to the Company's guarantees of its subsidiaries' indebtedness, which, in their view, could constitute a breach of the securities purchase agreements and defaults under the Notes and result in the application of default interest rates (20%) and other monetary penalties. We disagree with these positions, and believe we have valid defenses, and we intend to take appropriate action to preserve the Company’s rights. We are attempting to resolve these disagreements amicably through ongoing discussions, but an inability to resolve these disputes would likely increase the costs of refinancing or repayment or hinder our ability to refinance or amend the Notes or otherwise obtain new debt financing to fund our longer-term operations and acquisition strategy. Moreover, an inability to reach resolution may lead to litigation with the holders of the Notes, whether brought by us or against us. Any such litigation could be expensive, time-consuming, and distracting and no assurance can be provided that the outcome would be satisfactory. If we do reach agreement with the holders of the Notes, any agreements or amendments we execute are likely to impose additional conditions or costs that impact our liquidity and the flexibility of our operations or create the possibility of dilution to our other equity holders.

Even if successful, litigation, other legal proceedings or protracted negotiations could be expensive and time consuming and could divert management’s attention from managing our business and could result in significant adverse judgments or costs of settlement, amendments to agreements or adjustments to instruments, any of which may have a material adverse effect on our liquidity, financial position, business, reputation or prospects.

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Market Information

Our common stock has been listed on the Nasdaq Global Market since April 12, 2022. Our common stock was quoted on the Pink Open Market from January 27, 2021, to April 11, 2022. Our common stock is currently quoted under the trading symbol “CRGE”.

Recent Sales of Unregistered Securities; Use of Proceeds from Registered Offerings

We did not sell any of our equity securities during the three months ended September 30, 2023, that were not registered under the Securities Act and were not previously reported on a Current Report on Form 8-K filed by us.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

On November 3, 2023, the Company entered into employment agreements with Ms. Leah Schweller, the Chief Financial Officer, and Mr. James Biehl, the Chief Legal and Compliance Officer, and Corporate Secretary, and on November 6, 2023, the Company entered into an employment agreement with Mr. Craig Denson, the Interim Chief Executive Officer and Chief Operating Officer.

Mr. Denson’s employment agreement dated November 6, 2023 (the “Denson Letter Agreement”), but effective August 29, 2023, provides for an annual salary of $400,000. He will also be eligible to earn an annual cash incentive award under the Company’s bonus program, cash incentive plan (once established), or any successor plan. For fiscal year 2023, 50% of Mr. Denson’s annual incentive award shall be determined by the Board’s Compensation Committee in its discretion, and 50% shall be determined based on his satisfaction of certain objectives that shall be established by the Compensation Committee.  Mr. Denson’s target annual incentive award for fiscal year 2023 shall be 100% of his base salary. Effective September 1, 2023, and for each full or partial quarter Mr. Denson serves as the Interim Chief Executive Officer, he shall be entitled to receive a cash bonus of $25,000 payable in the next payroll period immediately following such fiscal quarter; such bonus shall be prorated only from September 1, 2023 to September 30, 2023. Mr. Denson is also entitled to a retention bonus consisting of (i) an option to purchase Company’s common stock with a value equal to $200,000 based on a Black Scholes calculation, with an exercise price equal to the fair market value of the common stock on the grant date, a term of 10 years and the following vesting schedule: (a) 1/3 on March 1, 2024, (b) 1/3 three months following the effective date of appointment of the successor CEO, and (c) 1/3 on the first anniversary of the effective date of the appointment of the successor CEO; and (ii) cash bonus payable as follows: $133,000 on each of the first and second vesting date, and $134,000 on the third vesting date. 

The Denson Letter Agreement provides that he will be entitled to the following severance benefits in the event of termination by the Company without “cause” or by Mr. Denson for “good reason” (as those terms are defined in the Denson Letter Agreement): (i)(a) his base salary as in effect at the time of such termination to the extent such amount has accrued through the termination date and remains unpaid, (b) any fully earned and declared but unpaid annual incentive award as of the termination date, and (c) any unpaid unreimbursed expenses as of the termination date (collectively, (i)(a) through (i)(c), the “Accrued Obligations”); and (ii) in return for a timely executed and delivered release, (a) an amount equal to 12 months of his base salary, which shall be payable in the same amounts and at the same intervals as if the employment period had not ended, (b) if the termination date occurs more than 6 months after the beginning of the fiscal year, a prorated annual incentive award in respect of the fiscal year in which the termination date occurs, (c) any time-based vesting equity awards granted to him under the Company’s Equity Incentive Plan that would have vested in the 24-month period following the termination date shall immediately become vested upon his termination date, (d) extension of the exercise period with respect to all stock options held by Mr. Denson until the earlier of the date that is 2 years after the termination date, or the original expiration date of the stock options, and (e) if he timely elects continued coverage pursuant COBRA, payment of his share of the premium cost for the earlier of 12-month period following the termination date or the date which he is no longer eligible for COBRA.  

Should Mr. Denson be terminated within 3 months prior, upon or within 12 months of a Change of Control (as defined in the Denson Letter Agreement), Mr. Denson would be entitled to (i) the Accrued Obligations, and (ii) in return for a timely executed and delivered release, (a) an amount equal to two times of his annual base salary, which will be payable (y) if the termination date is within three months prior to the consummation of a change in control, in the same amounts and at the same intervals as if the employment period had not ended, or (z) if the termination date is within 12 months following the consummation of a change in control, in a single lump sum cash payment within 2 and a half months following the termination date; (b) an amount equal to one and a half times the target incentive award for the applicable fiscal year, which will be payable (y) if the termination date is within three months prior to the consummation of a change in control, in the same manner and at the same time that the Company pays other Company executive incentive awards under the incentive plan after the termination date, or (z) if the termination date is within 12 months following the consummation of a change in control, in the same manner in a single lump sum cash payment within 2 and a half months following the termination date, (c) immediate vesting of the portion of all his time-based equity awards under the Company’s Equity Incentive Plan, (d) the extension of the post-termination exercise period with respect to all stock options held by Mr. Denson until the earlier of the date that is 2 years after the termination date or the original expiration date of the stock options; and (e) if he timely elects continued coverage, payment of his share of the premium cost of COBRA for the earlier of 18-month period following the termination date, or the date which he is no longer eligible for COBRA. 

Ms. Schweller’s employment agreement, dated November 3, 2023 (the “Schweller Letter Agreement”), provides for an annual salary of $300,000. She will also be eligible to earn an annual cash incentive award under the Company’s bonus program, cash incentive plan (once established), or any successor plan. For fiscal year 2023, 50% of Ms. Schweller’s annual incentive award shall be determined by the Board’s Compensation Committee in its discretion, and 50% shall be determined based on her satisfaction of certain objectives that shall be established by the Compensation Committee. Ms. Schweller’s target annual incentive award for fiscal year 2023 shall be 100% of her base salary. The Schweller Letter Agreement provides that she will be entitled to the following severance benefits in the event of termination by the Company without “cause” or by Ms. Schweller for “good reason” (as those terms are defined in the Schweller Letter Agreement): (i)(a) her base salary as in effect at the time of such termination to the extent such amount has accrued through the termination date and remains unpaid, (b) any fully earned and declared but unpaid annual incentive award as of the termination date, and (c) any unpaid unreimbursed expenses as of the termination date (collectively, (i)(a) through (i)(c), the “Accrued Obligations”); and (ii) in return for a timely executed and delivered release, (a) an amount equal to 12 months of her base salary, which shall be payable in the same amounts and at the same intervals as if the employment period had not ended, (b) if the termination date occurs more than 6 months after the beginning of the fiscal year, a prorated annual incentive award in respect of the fiscal year in which the termination date occurs, (c) any time-based vesting equity awards granted to her under the Company’s Equity Incentive Plan that would have vested in the 24-month period following the termination date shall immediately become vested upon her termination date, (d) extension of the exercise period with respect to all stock options held by Ms. Schweller until the earlier of the date that is 2 years after the termination date, or the original expiration date of the stock options, and (e) if she timely elects continued coverage pursuant COBRA, payment of her share of the premium cost for the earlier of 12-month period following the termination date or the date which she is no longer eligible for COBRA.

Should Ms. Schweller be terminated within 3 months prior, upon or within 12 months of a Change of Control (as defined in the Schweller Letter Agreement), Ms. Schweller would be entitled to (i) the Accrued Obligations, and (ii) in return for a timely executed and delivered release, (a) an amount equal to one and a half times of her annual base salary, which will be payable (y) if the termination date is within three months prior to the consummation of a change in control, in the same amounts and at the same intervals as if the employment period had not ended, or (z) if the termination date is within 12 months following the consummation of a change in control, in a single lump sum cash payment within 2 and a half months following the termination date; (b) an amount equal to one and a half times the target incentive award for the applicable fiscal year, which will be payable (y) if the termination date is within three months prior to the consummation of a change in control, in the same manner and at the same time that the Company pays other Company executive incentive awards under the incentive plan after the termination date, or (z) if the termination date is within 12 months following the consummation of a change in control, in the same manner in a single lump sum cash payment within 2 and a half months following the termination date, (c) immediate vesting of the portion of all her time-based equity awards under the Company’s Equity Incentive Plan, (d) the extension of the post-termination exercise period with respect to all stock options held by Ms. Schweller until the earlier of the date that is 2 years after the termination date or the original expiration date of the stock options; and (e) if she timely elects continued coverage, payment of her share of the premium cost of COBRA for the earlier of 18-month period following the termination date, or the date which she is no longer eligible for COBRA.

Mr. Biehl’s employment agreement, dated November 3, 2023 (the “Biehl Letter Agreement”), provides for an annual salary of $350,000. He will also be eligible to earn an annual cash incentive award under the Company’s bonus program, cash incentive plan (once established), or any successor plan. For fiscal year 2023, 50% of Mr. Biehl’s annual incentive award shall be determined by the Board’s Compensation Committee in its discretion, and 50% shall be determined based on his satisfaction of certain objectives that shall be established by the Compensation Committee. Mr. Biehl’s target annual incentive award for fiscal year 2023 shall be 100% of his base salary. The Biehl Letter Agreement provides that he will be entitled to the following severance benefits in the event of termination by the Company without “cause” or by Mr. Biehl for “good reason” (as those terms are defined in the Biehl Letter Agreement): (i)(a) his base salary as in effect at the time of such termination to the extent such amount has accrued through the termination date and remains unpaid, (b) any fully earned and declared but unpaid annual incentive award as of the termination date, and (c) any unpaid unreimbursed expenses as of the termination date (collectively, (i)(a) through (i)(c), the “Accrued Obligations”); and (ii) in return for a timely executed and delivered release, (a) an amount equal to 12 months of his base salary, which shall be payable in the same amounts and at the same intervals as if the employment period had not ended, (b) if the termination date occurs more than 6 months after the beginning of the fiscal year, a prorated annual incentive award in respect of the fiscal year in which the termination date occurs, (c) any time-based vesting equity awards granted to him under the Company’s Equity Incentive Plan that would have vested in the 24-month period following the termination date shall immediately become vested upon his termination date, (d) extension of the exercise period with respect to all stock options held by Mr. Biehl until the earlier of the date that is 2 years after the termination date, or the original expiration date of the stock options, and (e) if he timely elects continued coverage pursuant COBRA, payment of his share of the premium cost for the earlier of 12-month period following the termination date or the date which he is no longer eligible for COBRA.

Should Mr. Biehl be terminated within 3 months prior, upon or within 12 months of a Change of Control (as defined in the Biehl Letter Agreement), Mr. Biehl would be entitled to (i) the Accrued Obligations, and (ii) in return for a timely executed and delivered release, (a) an amount equal to one and a half times of his annual base salary, which will be payable (y) if the termination date is within three months prior to the consummation of a change in control, in the same amounts and at the same intervals as if the employment period had not ended, or (z) if the termination date is within 12 months following the consummation of a change in control, in a single lump sum cash payment within 2 and a half months following the termination date; (b) an amount equal to one and a half times the target incentive award for the applicable fiscal year, which will be payable (y) if the termination date is within three months prior to the consummation of a change in control, in the same manner and at the same time that the Company pays other Company executive incentive awards under the incentive plan after the termination date, or (z) if the termination date is within 12 months following the consummation of a change in control, in the same manner in a single lump sum cash payment within 2 and a half months following the termination date, (c) immediate vesting of the portion of all his time-based equity awards under the Company’s Equity Incentive Plan, (d) the extension of the post-termination exercise period with respect to all stock options held by Mr. Biehl until the earlier of the date that is 2 years after the termination date or the original expiration date of the stock options; and (e) if he timely elects continued coverage, payment of his share of the premium cost of COBRA for the earlier of 18-month period following the termination date, or the date which he is no longer eligible for COBRA.

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Item 6. Exhibits

Exhibit Number	Description
3.1 #	Certificate of Incorporation of GoIP Global, Inc., dated October 1, 2020 (Incorporated by reference to Exhibit 3.1 to our Form S-1 as filed on February 12, 2021)
3.2 #	Certificate of Designations of the Series A Preferred Stock, dated October 6, 2020 (Incorporated by reference to Exhibit 3.2 to our Form S-1 as filed on February 12, 2021)
3.3 #	Certificate of Amendment to the Certificate of Incorporation, dated December 11, 2020 (Incorporated by reference to Exhibit 3.3 to our Form S-1 as filed on February 12, 2021)
3.4 #	Certificate of Amendment to the Certificate of Incorporation, dated January 26, 2021 (Incorporated by reference to Exhibit 3.4 to our Form S-1 as filed on February 12, 2021)
3.5 #	Amendment to Certificate of Designations of the Series A Preferred Stock, dated March 29, 2021 (Incorporated by reference to Exhibit 3.5 to our Form S-1/A as filed on June 11, 2021)
3.6 #	Certificate of Designations of the Series B Preferred Stock, dated May 20, 2021 (Incorporated by reference to Exhibit 3.7 to our Form S-1/A as filed on June 11, 2021)
3.7 #	Certificate of Designations of the Series C Preferred Stock, dated December 17, 2021 (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on December 23, 2021)
3.8 #	Certificate of Amendment of the Certificate of Incorporation, dated December 29, 2021 (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on January 4, 2022)
3.9 #	Amended and Restated Certificate of Designations of the Series C Preferred Stock, filed on February 25, 2022 (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on March 3, 2022)
3.10 #	Certificate of Amendment to the Certificate of Incorporation, dated September 27, 2022. (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on September 28, 2022)
3.11 #	Certificate of Designation of Preferences, Rights and Limitations of Series D Convertible Preferred Stock filed on June 30, 2022 (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on July 7, 2022).
3.12 #	Amended and Restated Bylaws, effective January 26, 2023. (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on January 27, 2023)
3.13 #	Certificate of Designation of Preferences, Rights and Limitations of Series E Preferred Stock filed on March 27, 2023 (Incorporated by reference to Exhibit 3.1 to our Form 8-K as filed on March 31, 2023)
10.1**	Employment Agreement, dated November 3, 2023, between Charge Enterprises, Inc. and Leah Schweller. (Filed herewith)
10.2**	Employment Agreement, dated November 3, 2023, between Charge Enterprises, Inc. and James Biehl. (Filed herewith)
10.3**	Employment Agreement, dated November 6, 2023, between Charge Enterprises, Inc. and Craig Denson. (Filed herewith)
10.4#	Separation and Consulting Agreement, dated August 28, 2023, by and between Charge Enterprises, Inc. and Andrew Fox (Incorporated by reference to Exhibit 10.1 to our Form 8-K as filed on August 29, 2023.
31.1 **	Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d- 14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 **	Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 ***	Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 ***	Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

51

101.INS **	Inline XBRL Instance Document.
101.SCH **	Inline XBRL Taxonomy Extension Schema.
101.CAL **	Inline XBRL Taxonomy Extension Calculation Linkbase.
101.LAB **	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE **	Inline XBRL Taxonomy Presentation Linkbase.
101.DEF **	Inline XBRL Taxonomy Definition Linkbase Document.
104 **	Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101)

** Filed herewith.

*** Furnished herewith.

# Incorporated by reference

52

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CHARGE ENTERPRISES, INC.
Date: November 8, 2023	By:	/s/ Craig Denson
	Name	Craig Denson
	Title:	Interim Chief Executive Officer
		(Principal Executive Officer)
	By:	/s/ Leah Schweller
	Name	Leah Schweller
	Title:	Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

53

EX-10.1

Exhibit 10.1

Leah Schweller

[OMITTED]

[OMITTED]

[OMITTED]

Dear Ms. Schweller:

CHARGE ENTERPRISES, INC. 125 PARK AVE., 25^th FLOOR NEW YORK, NY 10017

November 3, 2023

This letter sets forth our agreement with respect to your continued employment (hereinafter

“letter agreement”) with Charge Enterprises, Inc., a Delaware corporation (the “Company”).

1.    Employment. Your employment with the Company will be upon the terms and conditions set forth in this letter agreement beginning on November 3, 2023 (the “Effective Date”) and ending as provided in Section 4 (the “Employment Period”).

2.    Position and Duties. During the Employment Period, you will serve as Chief Financial Officer of the Company and will have the usual and customary duties, responsibilities, and authorities of a person in such position and such other duties assigned to you by the Chief Executive Officer which are consistent with your position. You will report directly to the CEO. You will devote your full working time, efforts and attention to, and diligently and conscientiously perform the duties of, such position. In addition to performing such duties for the Company, you may be required to perform similar duties for the Company’s existing subsidiaries or affiliates, and/or any subsidiaries and/or affiliates which may be formed or acquired from time to time in the future, (collectively, all such subsidiaries and/or affiliates, including subsidiaries formed after the date hereof, shall be referred to as the “Company Affiliates”). Except for travel for business purposes, you will be employed, and your primary offices will be located, at your home office. You represent to the Company that you are not subject to or a party to any employment agreement, non-competition covenant, or other agreement that would be breached by, or prohibit you from executing, this letter agreement and performing fully your duties and responsibilities hereunder.

3. Compensation.

(a) Base Salary. During the Employment Period, your base salary will be

$300,000 per annum (your “Base Salary”). Your Base Salary will be payable in regular installments in accordance with the Company’s general payroll practices and subject to withholding and other payroll taxes. Your Base Salary may be reviewed annually (consistent with the Company’s past practice and timing) by the Compensation Committee (the “Compensation Committee”) of the Board of Directors (the “Board”) in consultation with the Chief Executive Officer of the Company and such other officers designated by the Compensation Committee and may be increased by the Compensation Committee in its sole discretion (for the avoidance of doubt, such increased amount shall be considered your “Base Salary” for all purposes of this letter agreement). Unless agreed by you in writing, your Base Salary may not be decreased below your then current Base Salary by the Board, Compensation Committee or otherwise.

(b)    Cash Incentive Plan. With respect to each fiscal year of the Company ending during the Employment Period, you shall be eligible to earn an incentive award (an “Annual Incentive Award”) under the Company’s bonus program, cash incentive plan (once established), or any successor plan (the “Cash Incentive Plan”) pursuant to the terms and conditions of the Cash Incentive Plan. For fiscal year 2023, 50% of your Annual Incentive Award shall be determined by the Compensation Committee in its discretion and 50% shall be determined based on your satisfaction of certain objectives that shall be established by the Compensation Committee. Prior to, at or effective as of the beginning of each fiscal year of the Company after fiscal year 2023, the Compensation Committee shall determine your target Annual Incentive Award, taking into consideration such factors as the Compensation Committee deems appropriate. Your target Annual Incentive Award under the Cash Incentive Plan for fiscal year 2023 shall be 100% of Base Salary. For the avoidance of doubt, in the event of any conflict between term definitions in this Section 3(b) and the Cash Incentive Plan, the definitions in this letter agreement shall control.

(c)    Target Compensation after Fiscal Year 2023. Your awards under the Cash Incentive Plan and the Company’s 2020 Omnibus Equity Incentive Plan (“Equity Plan”) shall be reviewed annually by the Compensation Committee pursuant to the normal performance review policies for the Chief Legal Officer, Chief Compliance Officer, and Corporate Secretary, with such targets and objectives established by the Compensation Committee in its sole discretion.

(d)    Employee Benefits. During the Employment Period, you will be entitled to participate in all employee benefit programs, including without limitation health/medical insurance, for which senior executive employees of the Company are generally eligible, subject to applicable plans and policies as may be amended from time to time, in the sole discretion of the Board. During the Employment Period, you will be entitled to 27 days paid time off (“PTO”) during each calendar year, to be used and managed consistent with applicable Company policy. PTO shall accrue evenly over the course of each calendar year during the Employment Period.

(e)    Expenses. The Company shall reimburse you for all reasonable out-of- pocket business expenses incurred by you on behalf of the Company during the Employment Period, in accordance with applicable policies of the Company; provided that you properly account to the Company for all such expenses in accordance with the policies of the Company and the rules, regulations and interpretations of the U.S. Internal Revenue Service relating to reimbursement of business expenses (“Expenses”).

(f)    Insurance. During the Employment Period, the Company will maintain Directors and Officers Liability Insurance coverage that includes coverage of you, subject to the terms and conditions of such policy and with limits customary for similarly situated companies.

4. Termination.

(a)    You are employed on an at-will basis, for no set period of time. The Employment Period (i) will automatically terminate upon your death, (ii) may be terminated by the Company upon Notice of Termination (as defined in Section 5(f) below) delivered to you as a result of your Disability (as defined in Section 5(h) below), (iii) may be terminated by the Company upon Notice of Termination at any time for Cause (as defined in Section 5(g) below),

(iv) may be terminated by you upon Notice of Termination for Good Reason (as defined in Section 5(i) below) and (v) may be terminated by the Company upon Notice of Termination without Cause.

(b)    Effective as of the date of any Termination Date, you shall be deemed, without any further action on your part, to have automatically resigned from all Company-related positions, including as an officer of the Company and Company Affiliates.

5. Severance.

(a)    If the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, then, unless Section 5(b) applies, you will be entitled to receive:

(i)    your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date (as defined in Section 5(f) below) and remains unpaid, any fully earned and declared but unpaid Annual Incentive Award as of the Termination Date, and any unpaid Expenses in accordance with Section 3(e) hereof that have not been reimbursed by the Company as of the Termination Date that were incurred prior to the Termination Date (the sum of these amounts, the “Accrued Obligations”);

(ii)    an amount equal to 12 months of your Base Salary, less applicable withholdings, which shall be payable in the same amounts and at the same intervals as if the Employment Period had not ended;

(iii)    if your Termination Date occurs more than six months after the beginning of the then-current fiscal year, a prorated Annual Incentive Award in respect of the fiscal year in which the Termination Date occurs in an amount equal to the product of (A) the Annual Incentive Award, if any, that you would have received for such fiscal year if you had remained employed through the date on which the Annual Incentive Award is to be paid, and (B) a fraction, the numerator of which is the number of calendar days you were employed by the Company during such fiscal year and the denominator of which is 365, which amount shall be paid in the same manner and at the same time that the Company pays other Company executive incentive awards under the Annual Incentive Plan for such fiscal year;

(iv)    any time-based vesting equity awards granted to you under the Equity Plan that would have vested in the 24-month period following the Termination Date shall immediately become vested upon your Termination Date;

(v)    the Company will extend the post-termination exercise period with respect to all stock options held by you until the earlier of (A) the date that is two

(2) years after the Termination Date, or (B) the original expiration date of the stock options; and

(vi)    if you timely elect continued coverage pursuant to COBRA, the Company will reimburse you for a portion of the monthly COBRA premium such that you are paying the same premium cost as active employees of the Company until the earliest to occur of (A) the date that is twelve (12) months after the

Termination Date, or (B) the date on which you are no longer eligible for COBRA coverage, provided that the Company may modify the subsidized COBRA continuation coverage contemplated herein to the extent the Company determines necessary to ensure compliance with the non-discrimination requirements of Section 105(h) of the Code.

The Company’s obligation to make the payments to you described in clauses (ii), (iii), (iv), (v) and (vi) of this Section 5(a) is conditioned upon your executing and delivering, no later than 45 days following the Termination Date (and not revoking), a release relating to your employment by the Company in favor of the Company, the Company Affiliates and their respective stockholders, officers, members, managers, directors, employees, subsidiaries and affiliates substantially in the form attached as Exhibit A (a “Release”); provided, further, that until the period to revoke such Release has expired, the Company shall retain any payments that would otherwise be made pursuant to clauses (ii), (iii), (iv), (v) and (vi) of this Section 5(a), with such payment being made on the next regularly scheduled payroll date after such revocation period expires.

(b)    Change in Control Termination. If the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, in each case, within three months prior, upon or within 12 months following the consummation of a Change in Control (as defined below), then, subject to your execution and non-revocation of a Release in the manner provided in Section 5(a) above (except for the payments described in clause

(i) of this Section 5(b), which shall not be subject to such Release requirement), you will be entitled to receive in lieu of the severance pay and benefits described in Section 5(a) above:

(i) the Accrued Obligations;

(ii)    an amount equal to one-and-a-half times (1.5x) your annual Base Salary, less applicable withholdings, which shall be paid (A) if the Termination Date is within three months prior to the consummation of a Change in Control, in the same amounts (taking the 1.5x multiple into account) and at the same intervals as if the Employment Period had not ended, or (B) if the Termination Date is within 12 months following the consummation of a Change in Control, in a single lump sum cash payment within two and a half (2-1/2) months following the Termination Date;

(iii)    an amount equal to one-and-a-half times (1.5x) your target Annual Incentive Award either for the year in which the Termination Date occurs (or if it has not yet been established, the target Annual Incentive Award established for the immediately preceding year), which shall be paid (A) if the Termination Date is within three months prior to the consummation of a Change in Control, in the same manner and at the same time that the Company pays other Company executive incentive awards under the Incentive Plan after the Termination Date, or (B) if the Termination Date is within 12 months following the consummation of a Change in Control, in a single lump sum cash payment within two and a half (2-1/2) months following the Termination Date;

(iv)    any time-based vesting equity awards granted to you under the Equity Plan shall immediately become vested upon your Termination Date;

(v)    the Company will extend the post-termination exercise period with respect to all stock options held by you until the earlier of (A) the date that is two

(2) years after the Termination Date, or (B) the original expiration date of the stock options; and

(vi)    if you timely elect continued coverage pursuant to COBRA, the Company will reimburse you for a portion of the monthly COBRA premium such that you are paying the same premium cost as active employees of the company until the earliest to occur of (A) the date that is eighteen (18) months after the Termination Date, or (B) the date on which you are no longer eligible for COBRA coverage, provided that the Company may modify the subsidized COBRA continuation coverage contemplated herein to the extent the Company determines necessary to ensure compliance with the non-discrimination requirements of Section 105(h) of the Code.

(c)    For purposes of this letter agreement, a “Change in Control” shall be deemed to occur when and only when any of the following events first occurs: (A) any person becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding voting securities;

(B) a majority of the members of the Board are replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such Board prior to the date of the appointment or election; or (C) any merger (other than a merger where the Company is the survivor and there is no accompanying Change in Control under clauses (A) or (B)), consolidation, liquidation or dissolution of the Company, or the sale of all or substantially all of the assets of the Company; provided, however, that a Change in Control shall not be deemed to occur unless the event also constitutes a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company for purposes of Treasury Regulation Section 1.409A-3(i)(5). Notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to clause (A) solely because 50% or more of the combined voting power of the Company’s outstanding securities is acquired by (I) one or more employee benefit plans maintained by the Company or by any other employer, the majority interest in which is held, directly or indirectly, by the Company or (II) any person who is the beneficial owner of securities of the Company representing 30% or more of the combined voting power of the Company’s then-outstanding voting securities. For purposes of this paragraph, the terms “person” and “beneficial owner” shall have the meaning set forth in Sections 3(a) and 13(d) of the Exchange Act, and in the regulations promulgated thereunder.

(d)    Termination Due to Cause, Death, or Disability. If the Employment Period is terminated by the Company for Cause or by you other than for Good Reason, the Company will pay you the Accrued Obligations as of the Termination Date. If the Employment Period is terminated due to your Disability (as defined in Section 5(h) below) or death, the Company will pay you or your estate, whichever is applicable, the Accrued Obligations as of the Termination Date. Except as set forth in Section 5(e), upon delivery of the payments described in this Section

5(d), the Company will have no further obligation to you under this letter agreement or otherwise with respect to your employment with the Company.

(e)    Except as otherwise required by law or as specifically provided herein, all of your rights to salary, severance, fringe benefits, bonuses and any other amounts hereunder (if any) accruing after the termination of the Employment Period will cease upon the Termination Date. In the event the Employment Period is terminated, your sole remedy, and the sole remedy of your successors, assigns, heirs, representatives and estate, will be to receive the payments described in this letter agreement. Notwithstanding the foregoing, the following rights will survive any termination of the Employment Period: (i) your rights to accrued and vested benefits under any benefit plan of the Company or any of the Company Affiliates, or as set forth in any other agreement between you and the Company or any of the Company Affiliates, (ii) your right to continued participation in the Company’s health and welfare plans, except as otherwise provided in Sections 5(a)(vi) and 5(b)(vi), at your own expense pursuant to COBRA, (iii) your right to indemnification in respect of your service as a director or officer of the Company or any of the Company Affiliates, to the maximum extent provided under the Company’s Certificate of Incorporation and By-laws and Indemnity Agreement with the Company (each, as they may be amended from time-to-time), the Company’s Directors and Officers Liability Insurance coverage, and any other agreement between you and the Company, (iv) your rights in respect of shares of Common Stock that you hold and (v) your rights in respect of any equity-based awards that remain outstanding following the Employment Period (subject to the provisions of this letter agreement and any equity plan or award agreement that governs the terms of such equity-based awards).

(f)    Any termination of the Employment Period by the Company (other than termination upon your death) or by you must be communicated by written notice (in either case, a “Notice of Termination”) to you, if the Company is the terminating party, or to the Company, if you are the terminating party. For purposes of this letter agreement, “Termination Date” means

(i) if the Employment Period is terminated due to your death, the date of your death and (ii) if the Employment Period is terminated due to your Disability, by the Company (for Cause or without Cause) or by you (for Good Reason or without Good Reason), the date specified in the Notice of Termination (which may not be earlier than the date of such Notice of Termination). Notwithstanding anything contained herein to the contrary, any termination of the Employment Period by you must be communicated to the Company no less than 30 days prior to the intended Termination Date; provided, however, that the Company’s decision to shorten or eliminate the notice period shall not constitute a termination by the Company.

(g)    For purposes of this letter agreement, “Cause” means any one of the following: (i) a material breach by you of this letter agreement, (ii) your conviction of, guilty plea to, or confession of guilt of, a felony, (iii) materially fraudulent, dishonest or illegal conduct by you in the performance of services for or on behalf of the Company or any of the Company Affiliates, (iv) any repeated conduct by you in material violation of Company written policy, (v) any conduct by you that is materially detrimental to the reputation of the Company or any of the Company Affiliates, (vi) your misappropriation of funds of the Company or any of the Company Affiliates, (vii) your gross negligence or willful misconduct or willful failure to comply with written directions of the Board which directions are within the scope of your duties hereunder, or

(viii) your engaging in discrimination, sexual or other harassment, retaliation, or any conduct involving an act of moral turpitude. A purported termination of your employment for Cause shall

not be effective unless (A) the Company provides written notice to you of the facts alleged by the Company to constitute Cause and such notice is delivered to you no more than 90 days after the Company has actual knowledge of such facts and (B) you have been given an opportunity of no less than ten days after receipt of such notice to cure the circumstances alleged to give rise to Cause and the Company has cooperated in good faith with your efforts to cure such condition or circumstance, but only to the extent that such circumstances are reasonably curable.

(h)    For purposes of this letter agreement “Disability” means any accident, sickness, incapacity or other physical or mental impairment that prevents you from performing, with or without reasonable accommodation, the essential functions of your position pursuant to this letter agreement for either (i) 90 consecutive days or (ii) 180 days during any period of 365 consecutive days, in each case as determined in good faith by the Board. During the time periods specified above, the Company will continue to provide you with the compensation stated in Section 3 above.

(i)    For purposes of this letter agreement, “Good Reason” means (i) a material diminution in your authority, title, duties or responsibilities, (ii) the failure of the Company to make all payments due to you under this letter agreement or otherwise or (iii) the relocation of your primary office to a location more than 25 miles from your home office. A purported termination of your employment for Good Reason shall not be effective unless (A) you provide written notice to the Company of the facts alleged by you to constitute Good Reason and such notice is delivered to the Board no more than 60 days after the occurrence of such event, (B) the Company has been given an opportunity of no less than 30 days after receipt of such notice to cure the circumstances alleged to give rise to Good Reason and you have cooperated in good faith with the Company’s efforts to cure such condition or circumstance (which cooperation will not require you to waive or diminish any of your rights hereunder), but only to the extent that such circumstances are reasonably curable, and (c) you elect to terminate the Employment Period within 30 days following the end of the Company’s cure period due to the Company’s failure to cure.

(j)    Notwithstanding anything to the contrary in this letter agreement, if an equity award granted to you under the Equity Plan contains more favorable terms than as provided in this letter agreement, then such more favorable terms shall control.

6. Section 280G. Notwithstanding any other provision of this letter agreement:

(a)    In the event it is determined by an independent nationally recognized public accounting firm that is reasonably acceptable to you, which is engaged and paid for by the Company prior to the consummation of any transaction constituting a 280G Change of Control (which for purposes of this Section 6 shall mean a change in ownership or control as determined in accordance with the regulations promulgated under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate the 280G Change of Control (the “Accountant”), which determination shall be certified by the Accountant and set forth in a certificate delivered to you not less than ten Business Days prior to the 280G Change of Control setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to you under this letter agreement constitute “parachute payments” under Section

280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits to be paid to you under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting “parachute payments” which would otherwise be payable to you or for your benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction you would be entitled to receive and retain, on a net after- tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that you would be entitled to retain upon receipt of the Reduced Amount. In connection with making determinations under this Section 6, the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by you before or after the 280G Change of Control.

(b)    If the determination made pursuant to Section 6(a) results in a reduction of the payments that would otherwise be paid to you except for the application of this Section 6, the Company shall promptly give you notice of such determination. Such reduction in payments shall be first applied to reduce any cash payments that you would otherwise be entitled to receive (whether pursuant to this letter agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Section 409A (as defined in Section 13(h)), you elect to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting you to additional taxation under Section 409A. Within ten Business Days following such determination, the Company shall pay or distribute to you or for your benefit such amounts as are then due to you under this letter agreement and shall promptly pay or distribute to you or for your benefit in the future such amounts as become due to you under this letter agreement.

(c)    As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for your benefit pursuant to this letter agreement which should not have been so paid or distributed (each, an “Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for your benefit pursuant to this letter agreement could have been so paid or distributed (each, an “Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accountant, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or you which the Accountant believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for your benefit shall promptly be repaid by you to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which you are subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment

shall be promptly paid by the Company to or for your benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

(d)    In the event of any dispute with the Internal Revenue Service (or other taxing authority) with respect to the application of this Section 6, you shall control the issues involved in such dispute and make all final determinations with regard to such issues. The Company will bear all fees and expenses of any audit, suit or proceeding by the IRS or any other taxing authority against the Company or against you, or of any claim for refund, appellate procedure, or suit brought by the Company or you against the IRS or any other taxing authority, in each case relating to the excise tax imposed by Section 4999 of the Code.

7. Confidential Information.

(a)    You will not disclose or use at any time any Confidential Information (as defined below in Section 7(c)), whether or not such information is developed by you, except to the extent that such disclosure or use is required in the performance or exercise by you in good faith of (i) duties assigned to you under this letter agreement or otherwise by the Board, (ii) rights as an employee, officer, director or shareholder of the Company or any of the Company Affiliates or

(iii) rights under any agreement with the Company or any of the Company Affiliates.

(b)    You will deliver to the Company at the termination of the Employment Period, or at any time the Company may request, all memoranda, notes, plans, designs, records, reports, computer files and software and other documents and data (and copies thereof) that are Confidential Information or Work Product (as defined below) or information relating to the business of the Company or the Company Affiliates which you may then possess or have under your control. Upon request, you will also make available to the Company any smartphones or other devices on which you store Company information, so that the Company may remove such information.

(c)    As used in this letter agreement, the term “Confidential Information” means information belonging to the Company or any of the Company Affiliates that is not generally known or available to the public and that is used, developed or obtained by the Company or any of the Company Affiliates in connection with its or their businesses, including without limitation (i) information, observations and data concerning its and their business and affairs, products or services, and fees, costs and pricing structures, (ii) designs, (iii) analyses, (iv) drawings, designs, photographs, artwork and reports, (v) computer software, including operating systems, applications and program listings, (vi) flow charts, manuals and documentation, (vii) databases, (viii) information concerning its accounting and business methods, (ix) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (x) other copyrightable works, (xi) all production methods, processes, technology and trade secrets, (xii) product and product candidate formulae and any trade secrets with respect to such products and product candidates and (xiii) all similar and related information in whatever form.

(d)    Notwithstanding the provisions of this letter agreement to the contrary, you will have no liability to the Company for disclosure of Confidential Information if the Confidential Information:

(i)    is in the public domain or becomes publicly known in the industry in which the Company or any of the Company Affiliates operates or is disclosed by the Company or any of the Company Affiliates other than as the result of a breach of this letter agreement or any other agreement by you; or

(ii)    is required to be disclosed by law, court order, or similar compulsion or in connection with any legal proceeding; provided, however, that such disclosure will be limited to the extent so required and, subject to the requirements of law, you will give the Company notice of your intent to so disclose such Confidential Information and will cooperate with the Company in seeking confidentiality protections.

(e)    Notwithstanding the foregoing, nothing in or about this letter agreement prohibits you from (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “SEC”); (ii) providing Confidential Information to the SEC, or providing the SEC with information that would otherwise violate this Section 7, to the extent permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in an SEC investigation or proceeding concerning the Company without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F of the Exchange Act. Furthermore, you are advised that you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information that constitutes a trade secret to which the Defend Trade Secrets Act (18 U.S.C. Section 1833(b)) applies that is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (B) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

8.    Inventions and Patents. You agree that all inventions, innovations, improvements, technical information, trade secrets, systems, software developments, ideas, results, methods, designs, artwork, analyses, drawings, reports, copyrights, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) which relate to the Company’s or any of the Company Affiliates’ businesses, research and development or existing products (or products under development) or services and which are conceived, developed or made by you (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during your employment with the Company, together with all intellectual property rights therein, including without limitation any patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to herein as “Work Product”), is the exclusive property of the Company and/or the Company Affiliates. For the avoidance of doubt and without limiting the foregoing, (x) the Company or any of the Company Affiliates shall be the sole owner of all right, title and interest in such Work Product, including without limitation all intellectual property rights relating to such Work Product, without you retaining any license or other residual right whatsoever, and (y) any rights to any new or an existing Work Product are automatically conveyed, assigned and transferred to the Company pursuant to this letter agreement. You hereby waive and renounce to all moral rights related, directly or indirectly, to any such existing or new Work Product. You will take reasonable steps

to promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm such ownership (including without limitation the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable assistance to the Company and the Company Affiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.

9. Non-Competition; Non-Solicitation.

(a)    You acknowledge that, in the course of your employment with the Company, you will become familiar with the Company’s and the Company Affiliates’ trade secrets and other Confidential Information as well as the Company’s customer information and goodwill, and that your services will be of special, unique, and extraordinary value to the Company and the Company Affiliates. Therefore, you agree that, during the Employment Period and any other period during which you are employed by the Company or any of its Affiliates, whether pursuant to this letter agreement or otherwise, plus an additional six (6) months after your separation (the “Restriction Period”) (regardless of the reason for your separation from the Company and whether caused by you or the Company), you will not (x) in the United States or any other country where, as of the time at issue, the Company or any of the Company Affiliates conducts business or (y) anywhere else that, during the then prior two-year period, the Company or any of the Company Affiliates has spent time and resources in connection with expanding its business, directly or indirectly, either on your own behalf or on behalf of any other person, firm or entity: engage in, or own, manage, operate, work as an employee for, consult with, provide services or financing to, or join, control or participate in the ownership, management, operation or control of, any business (whether in corporate, proprietorship or partnership form or otherwise) that is engaged in. the business of (i) electric vehicle charging, broadband or electrical contracting infrastructure or (ii) such other business in which the Company or any Company Affiliates with which you worked was engaged at any time during the then immediately prior two years.

(b)    Nothing in Section 9(a) will prohibit you from being a passive owner of not more than 2% of the outstanding stock of a publicly-traded corporation, so long as you have no active participation in the business of such corporation.

(c) During the Restriction Period, you also will not:

(i)    induce or attempt to induce any customer, supplier or other business relation of the Company or any of the Company Affiliates to cease doing business with the Company or any of the Company Affiliates, or in any way interfere with the relationship between any such customer, supplier or business relation, on the one hand, and the Company or any of the Company Affiliates, on the other hand;

(ii)    engage, employ, solicit or contact with a view to the engagement or employment of, any employee, officer or manager of, or full-time consultant to, the Company or any of the Company Affiliates with which you worked or any person who has been an employee, officer or manager of, or consultant to, the Company

or any of the Company Affiliates with which you worked, if he or she has been in such a role at any time within the then immediately prior three months; or

(iii)    assist any individual or entity to engage in the conduct referenced in clauses (i) and (ii) immediately above.

10. Enforcement.

(a)    Because the employment relationship between you and the Company is unique and because you have access to Confidential Information, Work Product and Company goodwill, you agree that money damages would be an inadequate remedy for any breach of Section 7, 8 or 9. Therefore, in the event of a breach or threatened breach of Section 7, 8 or 9, the Company may, in addition to its other rights and remedies, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, such provisions (without posting a bond or other security).

(b)    Sections 5, 6, 7, 8 and 9 will expressly survive termination of the Employment Period and this letter agreement. The existence of any claim or cause of action by you against the Company and/or any of the Company Affiliates shall not constitute a defense to the enforcement by the Company of the covenants contained in Section 6(b), 7, 8 or 9, but such claim or cause of action shall be litigated separately.

11.    Notices. All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim or other communication hereunder will be deemed duly given (a) upon delivery, if delivered personally to the recipient, against written receipt therefor, or (b) upon the first Business Day after the date sent, if sent priority next Business Day delivery to the intended recipient by a reputable express courier service (charges prepaid) and addressed to the intended recipient as set forth below:

If to the Company, to:

Attention: Jamie Yung and/or Craig Denson Charge Enterprises, Inc.

125 Park Ave, 25^th Floor New York, NY 10017

If to you, to the address appearing in the Company’s records.

Any party hereto may send any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using any other means, but no such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received and acknowledged by the intended recipient. Any party hereto may change the address (or add new parties and their addresses) to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner set forth in this Section 11.

12.    Representations and Warranties. You hereby represent and warrant to the Company that (a) the execution, delivery and performance of this letter agreement by you does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which you are a party or any judgment, order or decree to which you are subject, (b) you are not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, confidentiality agreement or similar agreement with any other person or entity that is inconsistent with the provisions of this letter agreement or that would limit you in your duties hereunder, (c) upon the execution and delivery of this letter agreement by the Company and you, this letter agreement will be a valid and binding obligation of you and (d) you are able to perform the services described in this letter agreement. The Company hereby represents and warrants to you that (i) the execution, delivery and performance of this letter agreement does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which it is a party or any judgment, order or decree to which it is subject and (ii) upon the execution and delivery of this letter agreement by the Company and you, such agreements will be valid and binding obligations of the Company.

13.    Lock-Up Agreement. In connection with a registration with the United States Securities and Exchange Commission under the Securities Act of the public sale of shares of Common Stock, you shall not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time prior to the effective date of such registration and continuing through and following the effective date of such registration (not to exceed 90 days) as the Company or the underwriters, as the case may be, shall specify. You agree that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce the provisions of this Section. You shall execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering.

14. General Provisions.

(a)    Severability. It is the desire and intent of the parties hereto that the provisions of this letter agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this letter agreement will be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, will be ineffective, without invalidating the remaining provisions of this letter agreement or affecting the validity or enforceability of this letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it will, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

(b)    Complete Agreement. This letter agreement and any schedules or exhibits expressly constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes and pre-empts any prior understandings, agreements or

representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

(c)    Successors and Assigns. The Company may freely assign this letter agreement, including to any Affiliate or in connection with any merger or sale of equity or assets, and upon such assignment the references herein to the Company shall be deemed to include the assignee. You may not assign your rights and obligations under this letter agreement without the prior written consent of the Company. Except as otherwise provided herein, this letter agreement will be binding upon and inure to the benefit of you and the Company and our respective successors, permitted assigns, personal representatives, heirs and estates, as the case may be.

(d)    Governing Law. This letter agreement will be governed by and construed in accordance with the domestic laws of New York, without giving effect to the choice of law provisions thereof. The parties agree that any dispute under this letter agreement may be brought in the federal and state courts sitting in New York and by this letter agreement the parties expressly consent to such courts’ jurisdiction.

(e)    Amendment and Waiver. The provisions of this letter agreement may be amended and waived only with the prior written consent of the Company (with the approval of the Board) and you, and no course of conduct or failure or delay in enforcing the provisions of this letter agreement will affect the validity, binding effect or enforceability of this letter agreement or any provision hereof.

(f)    Headings. The section headings contained in this letter agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this letter agreement.

(g)    Counterparts. This letter agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same instrument. The signatures of any of the persons executing this letter agreement may be transmitted via facsimile or other electronic means and shall be sufficient evidence of the execution of this letter agreement.

(h) 409A Provision.

(i)    For purposes of this letter agreement the term “termination of employment” and similar terms relating to your termination of employment mean a “separation from service” as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder (“Section 409A”). The Company and you intend that this letter agreement comply in form and operation with the requirements of Section 409A, and all provisions of this letter agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. To the extent permitted by applicable Department of Treasury/Internal Revenue Service guidance, or law or regulation, the Company and you will take reasonable actions to reform this letter agreement or any actions

taken pursuant to their operation of this letter agreement in order to comply with Section 409A.

(ii)    For purposes of Section 409A, each of the payments that may be made hereunder is designated as a separate payment. To the extent that the Company determines that any payment or benefit pursuant to this letter agreement constitutes deferred compensation (within the meaning of Section 409A), such payment or benefit shall be made at such times and in such forms as the Company determines are required to comply with Section 409A and the Treasury Regulations and any applicable guidance thereunder. If, as of the date of your termination of employment, you are a “specified employee” within the meaning of Section 409A, then to the extent necessary to comply with Section 409A and to avoid the imposition of taxes and/or penalties under Section 409A, payment to you of any amount or benefit under this letter agreement or any other Company plan, program or agreement that constitutes “nonqualified deferred compensation” under Section 409A and which under the terms of this letter agreement or any other Company plan, program or arrangement would otherwise be payable as a result of and within six (6) months following such termination shall be delayed, as provided under current regulatory requirements under Section 409A, until the earlier of (i) five (5) calendar days after the Company receives notification of your death or (ii) the first Business Day of the seventh month following the date of your termination of employment. All tax gross-up payments provided under this letter agreement or any other agreement with you shall be made or provided by the end of your taxable year following your taxable year in which you remit the related taxes.

(iii)    Except as otherwise permitted by Section 409A, the benefits and reimbursements provided to you under this letter agreement and any Company plan or policy during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this letter agreement or any Company plan or policy in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto. Further, in the case of reimbursement payments, reimbursement payments shall be made to you as soon as practicable following the date that the applicable expense is incurred and proper documentation is provided to the Company, but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred.

(i)“    Business Day” Defined. For purposes of this letter agreement, the capitalized term “Business Day” shall mean any calendar day other than a Saturday, Sunday or other day on which banks in New York, New York are authorized or required to be closed.

(j)    Clawback Acknowledgement. This letter agreement and the compensation payable hereunder, as applicable, shall be subject to any applicable clawback or recoupment policies, stock ownership policies, share trading policies, and other codes of conduct and written policies that are in place as of the Effective Date and as may be revised or implemented by the Company from time to time as applicable to officers of the Company, in each case after

consultation with you. For the avoidance of doubt, notwithstanding any other provision herein, any incentive compensation awarded to you that is subject to recovery under any law, government regulation, stock exchange listing requirement or recoupment policy adopted by the Company will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, stock exchange listing requirement or recoupment policy adopted by the Company (including a policy adopted by the Company in response to any such law, government regulation or stock exchange listing requirement).

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If this letter agreement correctly expresses our mutual understanding, please sign and date a copy of this letter agreement and return it to the Company.

Very truly yours, Charge Enterprises, Inc.

By:                   Name: Craig Denson

Title: Chief Executive Officer and Chief Operating Officer

The terms of this letter agreement are accepted and agreed to as of the date set forth below by:

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Leah Schweller

11-03-2023

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Date

EXHIBIT A

Form of Release RELEASE

This Release (“Release”) is delivered by [Executive] on this          day of          , 20 .

DEFINITIONS

A.    As used herein, unless otherwise specified, the term “Employer” shall mean Charge Enterprises, Inc., and the term “Employer Group” shall mean Employer; all of its affiliates, successors, predecessors, assigns, parents, subsidiaries, and divisions (whether incorporated or unincorporated); and all of its and their past and present owners, directors, officers, trustees, shareholders, managers, employees and agents (in their individual and representative capacities).

B.    As used herein, unless otherwise specified, the term “Employee” shall mean [Executive], and the term “Employee Representatives” shall mean all of Employee’s heirs, family members, executors, accountants, administrators, attorneys, agents, assigns, successors and representatives.

RECITALS

WHEREAS, Employee’s employment ended on          , 20 ; and

WHEREAS, it is a condition to Employee’s receipt of certain post-employment benefits (“Conditional Benefits”) under Sections 5 of the letter agreement, dated [         ], 2023 (the “Employment Agreement”), between Employee and Employer that Employee execute and not revoke this Release.

NOW THEREFORE, in consideration of the promises, representations and mutual covenants contained in this Release, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, it is agreed as follows:

1.    Consideration. Employee acknowledges that the Conditional Benefits are in excess of any earned wages or benefits due and owing to Employee, and would not be paid or provided unless Employee executed this Release. Employee acknowledges and agrees that the Conditional Benefits are adequate and independent consideration for Employee executing this Release and releasing any and all claims against Employer.

2.    Release of All Claims. In consideration of the above, and the other promises set forth in this Release, Employee, on behalf of himself and all of the Employee Representatives, fully and forever waives, releases, acquits and discharges Employer and the other members of the Employer Group from and for all manner of claims, actions, suits, charges, demands, grievances and/or causes of action, in law or in equity, existing by reason of and/or based upon any fact or set of facts, known or unknown, existing from the beginning of time through the date of Employee’s

B-1

execution of this Release relating to and/or arising out of the Employment Agreement, Employee’s employment with Employer and/or the cessation of Employee’s employment with Employer (collectively, the “Released Claims”), including, but not limited to, all claims, actions, suits, charges, demands, grievances and/or causes of action (x) for wages, compensation, liquidated damages, commissions, bonuses, benefits, sums of money, damages of every type, costs, attorney fees, judgments, and executions, (y) alleging wrongful discharge, breach of contract, breach of implied contract, breach of the covenant of good faith and fair dealing, tortious interference with contract or business relationships, assault, battery, invasion of privacy, misappropriation of trade secrets, promissory estoppel, unjust enrichment, loss of consortium, violation of the penal statutes, negligent or intentional infliction of emotional distress, negligence, defamation, retaliation and/or discrimination and/or harassment on account of age, sex, sexual orientation, creed, religion, race, color, national origin, sensory disability, mental disability, physical disability, veteran or military status, marital status, or any other classification recognized under all applicable discrimination laws, or (z) brought under common law or civil rights or other statutes, including Title VII of the Civil Rights Act of 1964 (“Title VII”), the Age Discrimination in Employment Act (“ADEA”) (as amended by the Older Workers Benefits Protection Act (“OWBPA”)), the Family and Medical Leave Act (“FMLA”), the Employee Retirement Income Security Act (“ERISA”), the Rehabilitation Act of 1973, the Americans with Disabilities Act (“ADA”), the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Workers Adjustment Retraining Notification Act (“WARN”), the Equal Pay Act (“EPA”), the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), the National Labor Relations Act (“NLRA”), the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law,¹ and any and all other federal, state, local statutes, ordinances, and laws, and every type of relief (legal, equitable and otherwise), available to Employee. Employee covenants and agrees that he will not pursue or allege any claim, matter or cause of action in violation of, and/or released under, this Release. Notwithstanding the foregoing or anything contained below, nothing in this Release shall be construed as releasing Employer from, and the Released Claims shall not include: (a) any obligation to pay those amounts due to Employee under Section 5(a) or 5(b) of the Employment Agreement, subject to the terms and conditions thereof; (b) Employee’s rights to enforce the terms of the Employment Agreement that survive the termination of the Employment Period (as defined in the Employment Agreement) or Employment Agreement; (c) Employee’s rights described in Section 5(e) of the Employment Agreement; (d) Employee’s non-forfeitable rights to accrued benefits (within the meaning of Sections 203 and 204 of ERISA), (e) Employee’s right to indemnification or exculpation under the Employment Agreement, Employer’s policies or law with respect to Employee’s service as a director or officer of Employer (including without limitation any such rights under Employer’s Certificate of Incorporation, By-laws and Directors and Officers Liability Insurance coverage); (f) any claims that by law cannot be waived by private agreement without judicial or governmental supervision; or (g) Employee’s right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission (“EEOC”) or other government agency; provided that even though Employee can file a charge or participate in an investigation or proceeding conducted by the EEOC or other government agency, by executing this Release, Employee is waiving his ability to obtain relief of any kind from the Employer Group to the extent permitted by law.

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¹ [Applicable state laws to be added based on Executive’s work location and residence at time of separation.]

3.    Covenant Not to Sue. Employee represents that he has not filed any action, charge, suit, or claim against Employer or any other member of the Employer Group with any federal, state or local agency or court relating to any Released Claim. Employee further agrees that should any claims, charges, complaints, suits or other actions be filed hereafter on his behalf by any federal, state or local agency or by any other person or entity with respect to a Released Claim, he will immediately withdraw with prejudice, or cause to be withdrawn with prejudice, and/or dismiss with prejudice, or cause to be dismissed with prejudice, any such claims, charges, complaints, suits or other actions filed against Employer. Employee further agrees that, to the fullest extent permitted by law, Employee shall receive no relief of any type (monetary, equitable, or otherwise) from Employer with respect to, relating to and/or on account of any such claims, matters or actions. Employee agrees to opt-out of, and not opt-in to, any class action or collective action filed against Employer to the extent related to a Released Claim.

4.    Confidentiality. To the fullest extent permitted by law, Employee agrees to keep confidential all facts, opinions, and information which relate in any way to Employee’s employment and/or cessation of employment with Employer, as well as the terms of this Release; provided however, Employee may discuss the terms of this Release with his spouse, legal representative, and/or tax preparer, each of whom must also agree to maintain confidentiality and comply with this Section 4. Notwithstanding anything herein to the contrary, Section 7(e) of the Employment Agreement will apply to this Release and nothing contained herein shall prevent Employee from making truthful statements to any government authority or agency.

5.    Return of Employer’s Property. Employee represents that he has returned to Employer any and all property, records, papers, documents and writings, in whatever form, of Employer in Employee’s possession and/or control, and that he has not retained any copies thereof, in whatever form.

6.    Non-Disparagement. Employee agrees not to disparage the Employer, its affiliates or the Employer’s or its affiliates’ officers, directors, employees, shareholders, parents, subsidiaries, affiliates, and agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation, and the Employer agrees to direct its officers and directors not to disparage Employee in any manner likely to be harmful to Employee in any manner including Employee’s business reputation or personal reputation; provided that Employee and the Employer may respond accurately and fully to any question, inquiry, or request for information when required by legal process or in connection with a government investigation. In addition, nothing in this provision or this Agreement is intended to prohibit or restrain Employee in any manner from making disclosures that are protected under the whistleblower provisions of federal or law or regulation.

7. Cooperation.

(a)    To the fullest extent permitted by law, Employee will not cooperate with, or assist in, any claim, charge, lawsuit, or arbitration against the Employer Group with respect to a Released Claim, unless required to do so by a lawfully issued subpoena, by court order or as expressly provided by regulation or statute. In the event Employee is served with a subpoena or is required by court order or otherwise to testify in any type of proceeding involving Employer and

related to a Released Claim, unless prohibited by applicable law from doing so, Employee shall immediately advise Employer in writing of same.

8.    Employee agrees to cooperate with the Employer Group in any internal investigation, administrative, regulatory, or judicial proceeding or any dispute with a third party. Employee’s cooperation may include being available to Employer upon reasonable notice for interviews and factual investigations, appearing at Employer’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to Employer pertinent information, and turning over to Employer all relevant documents which are or may come into Employee’s possession. Employee understands that in the event Employer asks for Employee’s cooperation in accordance with this provision, Employer will reimburse his for reasonable travel expenses (including lodging and meals) upon submission of receipts acceptable to Employer.

9.    ADEA Notice and Acknowledgement. Employee acknowledges that he has carefully read this Release and fully understands its contents. Prior to signing this Release, Employee has been advised in writing hereby and has had an opportunity to consult with his attorney of choice concerning the terms and conditions of this Release with regard to any claim or right Employee may have under the ADEA or otherwise. Employee has been offered at least [21/45] days to review and consider this Release. Employee may voluntarily and knowingly waive this [21/45]-day period, or any part thereof, if he signs this Release prior to the expiration of [21/45] days. After signing this Release, Employee shall have seven days from the signing date to revoke this Release. This Release shall not be effective (including for purposes under the Employment Agreement) until after the seven-day revocation period has expired. Any revocation must be made in writing and delivered to the Chief Legal Officer of Employer. Until all applicable periods set forth in this Section 7 have expired, Employer shall not be required to make any payment to Employee which payment is, under Sections 5(a) or 5(b) of the Employment Agreement, contingent upon the signing and delivery to the Company of this Release. By signing this Release, Employee agrees and understands that he is waiving and releasing any and all rights he may have to pursue the Released Claims against Employer, from the beginning of time up to the effective date of this Release, including, without limitation, all ADEA claims.

10.    Governing Law.² law shall govern this Release, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of .

11.    Successors and Assigns. This Release shall inure to the benefit of the successors and assigns of Employer.

12.    Severability. If any portion of this Release is ruled unenforceable, all remaining portions of this Release shall remain valid.

13.    No Reliance; No Waiver. Employee represents that he is not relying on any representation, statement, or promise of Employer or any other party in giving this Release. This

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² [Governing law to be added based on Executive’s work location and residence at time of separation.]

Release may not be amended, modified, waived, or terminated except in a writing signed by Employee and an authorized representative of Employer.

14.    Headings. The paragraph and section headings in this Release are inserted merely for the convenience of reference only and shall not be used to construe, affect or modify the terms of any paragraph or provision of this Release.

EMPLOYEE WITHOUT ANY DURESS OR COERCION FREELY, KNOWINGLY AND VOLUNTARILY ENTERS INTO, AND GIVES THIS RELEASE. EMPLOYEE UNDERSTANDS AND AGREES WITH ALL OF THE PROVISIONS AND THE TERMS STATED IN THIS RELEASE AND HAS BEEN AFFORDED SUFFICIENT AND REASONABLE TIME TO CONSIDER WHETHER TO ENTER INTO THIS RELEASE. EMPLOYER ADVISES EMPLOYEE TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOOSING PRIOR TO EXECUTING THIS RELEASE WHICH CONTAINS A RELEASE AND WAIVER.

Dated:          

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EX-10.2

Exhibit 10.2

James Biehl

[OMITTED]

CHARGE ENTERPRISES, INC. 125 PARK AVE., 25^th FLOOR NEW YORK, NY 10017

November 3, 2023

[OMITTED]

Dear Mr. Biehl:

This letter sets forth our agreement with respect to your continued employment (hereinafter

“letter agreement”) with Charge Enterprises, Inc., a Delaware corporation (the “Company”).

1.    Employment. Your employment with the Company will be upon the terms and conditions set forth in this letter agreement beginning on November 3, 2023 (the “Effective Date”) and ending as provided in Section 4 (the “Employment Period”).

2.    Position and Duties. During the Employment Period, you will serve as Chief Legal Officer, Chief Compliance Officer and Corporate Secretary of the Company and will have the usual and customary duties, responsibilities, and authorities of a person in such position and such other duties assigned to you by the Chief Executive Officer and Board of Directors of the Company (the “Board”) which are consistent with your position. You will report directly to the CEO and the Board. You will devote your full working time, efforts and attention to, and diligently and conscientiously perform the duties of, such position. In addition to performing such duties for the Company, you may be required to perform similar duties for the Company’s existing subsidiaries or affiliates, and/or any subsidiaries and/or affiliates which may be formed or acquired from time to time in the future, (collectively, all such subsidiaries and/or affiliates, including subsidiaries formed after the date hereof, shall be referred to as the “Company Affiliates”). Except for travel for business purposes, you will be employed, and your primary offices will be located, at your home office. You represent to the Company that you are not subject to or a party to any employment agreement, non-competition covenant, or other agreement that would be breached by, or prohibit you from executing, this letter agreement and performing fully your duties and responsibilities hereunder.

3. Compensation.

(a) Base Salary. During the Employment Period, your base salary will be

$350,000 per annum (your “Base Salary”). Your Base Salary will be payable in regular installments in accordance with the Company’s general payroll practices and subject to withholding and other payroll taxes. Your Base Salary may be reviewed annually (consistent with the Company’s past practice and timing) by the Compensation Committee of the Board (the “Compensation Committee”) in consultation with the Chief Executive Officer of the Company and such other officers designated by the Compensation Committee and may be increased by the Compensation Committee in its sole discretion (for the avoidance of doubt, such increased amount shall be considered your “Base Salary” for all purposes of this letter agreement). Unless agreed

by you in writing, your Base Salary may not be decreased below your then current Base Salary by the Board, Compensation Committee or otherwise.

(b)    Cash Incentive Plan. With respect to each fiscal year of the Company ending during the Employment Period, you shall be eligible to earn an incentive award (an “Annual Incentive Award”) under the Company’s bonus program, cash incentive plan (once established), or any successor plan (the “Cash Incentive Plan”) pursuant to the terms and conditions of the Cash Incentive Plan. For fiscal year 2023, 50% of your Annual Incentive Award shall be determined by the Compensation Committee in its discretion and 50% shall be determined based on your satisfaction of certain objectives that shall be established by the Compensation Committee. Prior to, at or effective as of the beginning of each fiscal year of the Company after fiscal year 2023, the Compensation Committee shall determine your target Annual Incentive Award, taking into consideration such factors as the Compensation Committee deems appropriate. Your target Annual Incentive Award under the Cash Incentive Plan for fiscal year 2023 shall be 100% of Base Salary. For the avoidance of doubt, in the event of any conflict between term definitions in this Section 3(b) and the Cash Incentive Plan, the definitions in this letter agreement shall control.

(c)    Target Compensation after Fiscal Year 2023. Your awards under the Cash Incentive Plan and the Company’s 2020 Omnibus Equity Incentive Plan (“Equity Plan”) shall be reviewed annually by the Compensation Committee pursuant to the normal performance review policies for the Chief Legal Officer, Chief Compliance Officer, and Corporate Secretary, with such targets and objectives established by the Compensation Committee in its sole discretion.

(d)    Employee Benefits. During the Employment Period, you will be entitled to participate in all employee benefit programs, including without limitation health/medical insurance, for which senior executive employees of the Company are generally eligible, subject to applicable plans and policies as may be amended from time to time, in the sole discretion of the Board. During the Employment Period, you will be entitled to 27 days paid time off (“PTO”) during each calendar year, to be used and managed consistent with applicable Company policy. PTO shall accrue evenly over the course of each calendar year during the Employment Period.

(e)    Expenses. The Company shall reimburse you for all reasonable out-of- pocket business expenses incurred by you on behalf of the Company during the Employment Period, in accordance with applicable policies of the Company; provided that you properly account to the Company for all such expenses in accordance with the policies of the Company and the rules, regulations and interpretations of the U.S. Internal Revenue Service relating to reimbursement of business expenses (“Expenses”). The Company shall reimburse you for all out- of-pocket fees and expenses incurred by you during the Employment Period for you to maintain your license to practice law.

(f)    Insurance. During the Employment Period, the Company will maintain Directors and Officers Liability Insurance coverage that includes coverage of you, subject to the terms and conditions of such policy and with limits customary for similarly situated companies.

4. Termination.

(a)    You are employed on an at-will basis, for no set period of time. The Employment Period (i) will automatically terminate upon your death, (ii) may be terminated by the Company upon Notice of Termination (as defined in Section 5(f) below) delivered to you as a result of your Disability (as defined in Section 5(h) below), (iii) may be terminated by the Company upon Notice of Termination at any time for Cause (as defined in Section 5(g) below),

(iv) may be terminated by you upon Notice of Termination for Good Reason (as defined in Section 5(i) below) and (v) may be terminated by the Company upon Notice of Termination without Cause.

(b)    Effective as of the date of any Termination Date, you shall be deemed, without any further action on your part, to have automatically resigned from all Company-related positions, including as an officer of the Company and Company Affiliates.

5. Severance.

(a)    If the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, then, unless Section 5(b) applies, you will be entitled to receive:

(i)    your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date (as defined in Section 5(f) below) and remains unpaid, any fully earned and declared but unpaid Annual Incentive Award as of the Termination Date, and any unpaid Expenses in accordance with Section 3(e) hereof that have not been reimbursed by the Company as of the Termination Date that were incurred prior to the Termination Date (the sum of these amounts, the “Accrued Obligations”);

(ii)    an amount equal to 12 months of your Base Salary, less applicable withholdings, which shall be payable in the same amounts and at the same intervals as if the Employment Period had not ended;

(iii)    if your Termination Date occurs more than six months after the beginning of the then-current fiscal year, a prorated Annual Incentive Award in respect of the fiscal year in which the Termination Date occurs in an amount equal to the product of (A) the Annual Incentive Award, if any, that you would have received for such fiscal year if you had remained employed through the date on which the Annual Incentive Award is to be paid, and (B) a fraction, the numerator of which is the number of calendar days you were employed by the Company during such fiscal year and the denominator of which is 365, which amount shall be paid in the same manner and at the same time that the Company pays other Company executive incentive awards under the Annual Incentive Plan for such fiscal year;

(iv)    any time-based vesting equity awards granted to you under the Equity Plan that would have vested in the 24-month period following the Termination Date shall immediately become vested upon your Termination Date;

(v)    the Company will extend the post-termination exercise period with respect to all stock options held by you until the earlier of (A) the date that is two

(2) years after the Termination Date, or (B) the original expiration date of the stock options; and

(vi)    if you timely elect continued coverage pursuant to COBRA, the Company will reimburse you for a portion of the monthly COBRA premium such that you are paying the same premium cost as active employees of the Company until the earliest to occur of (A) the date that is twelve (12) months after the Termination Date, or (B) the date on which you are no longer eligible for COBRA coverage, provided that the Company may modify the subsidized COBRA continuation coverage contemplated herein to the extent the Company determines necessary to ensure compliance with the non-discrimination requirements of Section 105(h) of the Code.

The Company’s obligation to make the payments to you described in clauses (ii), (iii), (iv), (v) and (vi) of this Section 5(a) is conditioned upon your executing and delivering, no later than 45 days following the Termination Date (and not revoking), a release relating to your employment by the Company in favor of the Company, the Company Affiliates and their respective stockholders, officers, members, managers, directors, employees, subsidiaries and affiliates substantially in the form attached as Exhibit A (a “Release”); provided, further, that until the period to revoke such Release has expired, the Company shall retain any payments that would otherwise be made pursuant to clauses (ii), (iii), (iv), (v) and (vi) of this Section 5(a), with such payment being made on the next regularly scheduled payroll date after such revocation period expires.

(b)    Change in Control Termination. If the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, in each case, within three months prior, upon or within 12 months following the consummation of a Change in Control (as defined below), then, subject to your execution and non-revocation of a Release in the manner provided in Section 5(a) above (except for the payments described in clause

(i) of this Section 5(b), which shall not be subject to such Release requirement), you will be entitled to receive in lieu of the severance pay and benefits described in Section 5(a) above:

(i) the Accrued Obligations;

(ii)    an amount equal to one-and-a-half times (1.5x) your annual Base Salary, less applicable withholdings, which shall be paid (A) if the Termination Date is within three months prior to the consummation of a Change in Control, in the same amounts (taking the 1.5x multiple into account) and at the same intervals as if the Employment Period had not ended, or (B) if the Termination Date is within 12 months following the consummation of a Change in Control, in a single lump sum cash payment within two and a half (2-1/2) months following the Termination Date;

(iii)    an amount equal to one-and-a-half times (1.5x) your target Annual Incentive Award either for the year in which the Termination Date occurs (or if it has not yet been established, the target Annual Incentive Award established for the

immediately preceding year), which shall be paid (A) if the Termination Date is within three months prior to the consummation of a Change in Control, in the same manner and at the same time that the Company pays other Company executive incentive awards under the Incentive Plan after the Termination Date, or (B) if the Termination Date is within 12 months following the consummation of a Change in Control, in a single lump sum cash payment within two and a half (2-1/2) months following the Termination Date;

(iv)    any time-based vesting equity awards granted to you under the Equity Plan shall immediately become vested upon your Termination Date;

(v)    the Company will extend the post-termination exercise period with respect to all stock options held by you until the earlier of (A) the date that is two

(2) years after the Termination Date, or (B) the original expiration date of the stock options; and

(vi)    if you timely elect continued coverage pursuant to COBRA, the Company will reimburse you for a portion of the monthly COBRA premium such that you are paying the same premium cost as active employees of the company until the earliest to occur of (A) the date that is eighteen (18) months after the Termination Date, or (B) the date on which you are no longer eligible for COBRA coverage, provided that the Company may modify the subsidized COBRA continuation coverage contemplated herein to the extent the Company determines necessary to ensure compliance with the non-discrimination requirements of Section 105(h) of the Code.

(c)    For purposes of this letter agreement, a “Change in Control” shall be deemed to occur when and only when any of the following events first occurs: (A) any person becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding voting securities;

(B) a majority of the members of the Board are replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such Board prior to the date of the appointment or election; or (C) any merger (other than a merger where the Company is the survivor and there is no accompanying Change in Control under clauses (A) or (B)), consolidation, liquidation or dissolution of the Company, or the sale of all or substantially all of the assets of the Company; provided, however, that a Change in Control shall not be deemed to occur unless the event also constitutes a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company for purposes of Treasury Regulation Section 1.409A-3(i)(5). Notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to clause (A) solely because 50% or more of the combined voting power of the Company’s outstanding securities is acquired by (I) one or more employee benefit plans maintained by the Company or by any other employer, the majority interest in which is held, directly or indirectly, by the Company or (II) any person who is the beneficial owner of securities of the Company representing 30% or more of the combined voting power of the Company’s then-outstanding voting securities. For purposes of this paragraph, the terms “person” and “beneficial owner” shall have the meaning set forth in Sections 3(a) and 13(d) of the Exchange Act, and in the regulations promulgated thereunder.

(d)    Termination Due to Cause, Death, or Disability. If the Employment Period is terminated by the Company for Cause or by you other than for Good Reason, the Company will pay you the Accrued Obligations as of the Termination Date. If the Employment Period is terminated due to your Disability (as defined in Section 5(h) below) or death, the Company will pay you or your estate, whichever is applicable, the Accrued Obligations as of the Termination Date. Except as set forth in Section 5(e), upon delivery of the payments described in this Section 5(d), the Company will have no further obligation to you under this letter agreement or otherwise with respect to your employment with the Company.

(e)    Except as otherwise required by law or as specifically provided herein, all of your rights to salary, severance, fringe benefits, bonuses and any other amounts hereunder (if any) accruing after the termination of the Employment Period will cease upon the Termination Date. In the event the Employment Period is terminated, your sole remedy, and the sole remedy of your successors, assigns, heirs, representatives and estate, will be to receive the payments described in this letter agreement. Notwithstanding the foregoing, the following rights will survive any termination of the Employment Period: (i) your rights to accrued and vested benefits under any benefit plan of the Company or any of the Company Affiliates, or as set forth in any other agreement between you and the Company or any of the Company Affiliates, (ii) your right to continued participation in the Company’s health and welfare plans, except as otherwise provided in Sections 5(a)(vi) and 5(b)(vi), at your own expense pursuant to COBRA, (iii) your right to indemnification in respect of your service as a director or officer of the Company or any of the Company Affiliates, to the maximum extent provided under the Company’s Certificate of Incorporation and By-laws and Indemnity Agreement with the Company (each, as they may be amended from time-to-time), the Company’s Directors and Officers Liability Insurance coverage, and any other agreement between you and the Company, (iv) your rights in respect of shares of Common Stock that you hold and (v) your rights in respect of any equity-based awards that remain outstanding following the Employment Period (subject to the provisions of this letter agreement and any equity plan or award agreement that governs the terms of such equity-based awards).

(f)    Any termination of the Employment Period by the Company (other than termination upon your death) or by you must be communicated by written notice (in either case, a “Notice of Termination”) to you, if the Company is the terminating party, or to the Company, if you are the terminating party. For purposes of this letter agreement, “Termination Date” means

(i) if the Employment Period is terminated due to your death, the date of your death and (ii) if the Employment Period is terminated due to your Disability, by the Company (for Cause or without Cause) or by you (for Good Reason or without Good Reason), the date specified in the Notice of Termination (which may not be earlier than the date of such Notice of Termination). Notwithstanding anything contained herein to the contrary, any termination of the Employment Period by you must be communicated to the Company no less than 30 days prior to the intended Termination Date; provided, however, that the Company’s decision to shorten or eliminate the notice period shall not constitute a termination by the Company.

(g)    For purposes of this letter agreement, “Cause” means any one of the following: (i) a material breach by you of this letter agreement, (ii) your conviction of, guilty plea to, or confession of guilt of, a felony, (iii) materially fraudulent, dishonest or illegal conduct by you in the performance of services for or on behalf of the Company or any of the Company Affiliates, (iv) any repeated conduct by you in material violation of Company written policy, (v)

any conduct by you that is materially detrimental to the reputation of the Company or any of the Company Affiliates, (vi) your misappropriation of funds of the Company or any of the Company Affiliates, (vii) your gross negligence or willful misconduct or willful failure to comply with written directions of the Board which directions are within the scope of your duties hereunder, or

(viii) your engaging in discrimination, sexual or other harassment, retaliation, or any conduct involving an act of moral turpitude. A purported termination of your employment for Cause shall not be effective unless (A) the Company provides written notice to you of the facts alleged by the Company to constitute Cause and such notice is delivered to you no more than 90 days after the Company has actual knowledge of such facts and (B) you have been given an opportunity of no less than ten days after receipt of such notice to cure the circumstances alleged to give rise to Cause and the Company has cooperated in good faith with your efforts to cure such condition or circumstance, but only to the extent that such circumstances are reasonably curable.

(h)    For purposes of this letter agreement “Disability” means any accident, sickness, incapacity or other physical or mental impairment that prevents you from performing, with or without reasonable accommodation, the essential functions of your position pursuant to this letter agreement for either (i) 90 consecutive days or (ii) 180 days during any period of 365 consecutive days, in each case as determined in good faith by the Board. During the time periods specified above, the Company will continue to provide you with the compensation stated in Section 3 above.

(i)    For purposes of this letter agreement, “Good Reason” means (i) a material diminution in your authority, title, duties or responsibilities, (ii) the failure of the Company to make all payments due to you under this letter agreement or otherwise or (iii) the relocation of your primary office to a location more than 25 miles from your home office. A purported termination of your employment for Good Reason shall not be effective unless (A) you provide written notice to the Company of the facts alleged by you to constitute Good Reason and such notice is delivered to the Board no more than 60 days after the occurrence of such event, (B) the Company has been given an opportunity of no less than 30 days after receipt of such notice to cure the circumstances alleged to give rise to Good Reason and you have cooperated in good faith with the Company’s efforts to cure such condition or circumstance (which cooperation will not require you to waive or diminish any of your rights hereunder), but only to the extent that such circumstances are reasonably curable, and (c) you elect to terminate the Employment Period within 30 days following the end of the Company’s cure period due to the Company’s failure to cure.

(j)    Notwithstanding anything to the contrary in this letter agreement, if an equity award granted to you under the Equity Plan contains more favorable terms than as provided in this letter agreement, then such more favorable terms shall control.

6. Section 280G. Notwithstanding any other provision of this letter agreement:

(a)    In the event it is determined by an independent nationally recognized public accounting firm that is reasonably acceptable to you, which is engaged and paid for by the Company prior to the consummation of any transaction constituting a 280G Change of Control (which for purposes of this Section 6 shall mean a change in ownership or control as determined in accordance with the regulations promulgated under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), which accounting firm shall in no event be the accounting firm

for the entity seeking to effectuate the 280G Change of Control (the “Accountant”), which determination shall be certified by the Accountant and set forth in a certificate delivered to you not less than ten Business Days prior to the 280G Change of Control setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to you under this letter agreement constitute “parachute payments” under Section 280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits to be paid to you under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting “parachute payments” which would otherwise be payable to you or for your benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction you would be entitled to receive and retain, on a net after- tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that you would be entitled to retain upon receipt of the Reduced Amount. In connection with making determinations under this Section 6, the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by you before or after the 280G Change of Control.

(b)    If the determination made pursuant to Section 6(a) results in a reduction of the payments that would otherwise be paid to you except for the application of this Section 6, the Company shall promptly give you notice of such determination. Such reduction in payments shall be first applied to reduce any cash payments that you would otherwise be entitled to receive (whether pursuant to this letter agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Section 409A (as defined in Section 13(h)), you elect to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting you to additional taxation under Section 409A. Within ten Business Days following such determination, the Company shall pay or distribute to you or for your benefit such amounts as are then due to you under this letter agreement and shall promptly pay or distribute to you or for your benefit in the future such amounts as become due to you under this letter agreement.

(c)    As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for your benefit pursuant to this letter agreement which should not have been so paid or distributed (each, an “Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for your benefit pursuant to this letter agreement could have been so paid or distributed (each, an “Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accountant, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or you which the Accountant believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company

to or for your benefit shall promptly be repaid by you to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which you are subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for your benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

(d)    In the event of any dispute with the Internal Revenue Service (or other taxing authority) with respect to the application of this Section 6, you shall control the issues involved in such dispute and make all final determinations with regard to such issues. The Company will bear all fees and expenses of any audit, suit or proceeding by the IRS or any other taxing authority against the Company or against you, or of any claim for refund, appellate procedure, or suit brought by the Company or you against the IRS or any other taxing authority, in each case relating to the excise tax imposed by Section 4999 of the Code.

7. Confidential Information.

(a)    You will not disclose or use at any time any Confidential Information (as defined below in Section 7(c)), whether or not such information is developed by you, except to the extent that such disclosure or use is required in the performance or exercise by you in good faith of (i) duties assigned to you under this letter agreement or otherwise by the Board, (ii) rights as an employee, officer, director or shareholder of the Company or any of the Company Affiliates or

(iii) rights under any agreement with the Company or any of the Company Affiliates.

(b)    You will deliver to the Company at the termination of the Employment Period, or at any time the Company may request, all memoranda, notes, plans, designs, records, reports, computer files and software and other documents and data (and copies thereof) that are Confidential Information or Work Product (as defined below) or information relating to the business of the Company or the Company Affiliates which you may then possess or have under your control. Upon request, you will also make available to the Company any smartphones or other devices on which you store Company information, so that the Company may remove such information.

(c)    As used in this letter agreement, the term “Confidential Information” means information belonging to the Company or any of the Company Affiliates that is not generally known or available to the public and that is used, developed or obtained by the Company or any of the Company Affiliates in connection with its or their businesses, including without limitation (i) information, observations and data concerning its and their business and affairs, products or services, and fees, costs and pricing structures, (ii) designs, (iii) analyses, (iv) drawings, designs, photographs, artwork and reports, (v) computer software, including operating systems, applications and program listings, (vi) flow charts, manuals and documentation, (vii) databases, (viii) information concerning its accounting and business methods, (ix) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (x) other copyrightable works, (xi) all production methods, processes, technology and trade secrets, (xii) product and product candidate formulae and any trade

secrets with respect to such products and product candidates and (xiii) all similar and related information in whatever form.

(d)    Notwithstanding the provisions of this letter agreement to the contrary, you will have no liability to the Company for disclosure of Confidential Information if the Confidential Information:

(i)    is in the public domain or becomes publicly known in the industry in which the Company or any of the Company Affiliates operates or is disclosed by the Company or any of the Company Affiliates other than as the result of a breach of this letter agreement or any other agreement by you; or

(ii)    is required to be disclosed by law, court order, or similar compulsion or in connection with any legal proceeding; provided, however, that such disclosure will be limited to the extent so required and, subject to the requirements of law, you will give the Company notice of your intent to so disclose such Confidential Information and will cooperate with the Company in seeking confidentiality protections.

(e)    Notwithstanding the foregoing, nothing in or about this letter agreement prohibits you from (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “SEC”); (ii) providing Confidential Information to the SEC, or providing the SEC with information that would otherwise violate this Section 7, to the extent permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in an SEC investigation or proceeding concerning the Company without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F of the Exchange Act. Furthermore, you are advised that you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information that constitutes a trade secret to which the Defend Trade Secrets Act (18 U.S.C. Section 1833(b)) applies that is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (B) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

8.    Inventions and Patents. You agree that all inventions, innovations, improvements, technical information, trade secrets, systems, software developments, ideas, results, methods, designs, artwork, analyses, drawings, reports, copyrights, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) which relate to the Company’s or any of the Company Affiliates’ businesses, research and development or existing products (or products under development) or services and which are conceived, developed or made by you (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during your employment with the Company, together with all intellectual property rights therein, including without limitation any patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to herein as “Work Product”), is the exclusive property of the Company and/or the Company

Affiliates. For the avoidance of doubt and without limiting the foregoing, (x) the Company or any of the Company Affiliates shall be the sole owner of all right, title and interest in such Work Product, including without limitation all intellectual property rights relating to such Work Product, without you retaining any license or other residual right whatsoever, and (y) any rights to any new or an existing Work Product are automatically conveyed, assigned and transferred to the Company pursuant to this letter agreement. You hereby waive and renounce to all moral rights related, directly or indirectly, to any such existing or new Work Product. You will take reasonable steps to promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm such ownership (including without limitation the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable assistance to the Company and the Company Affiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.

9. Non-Competition; Non-Solicitation.

(a)    You acknowledge that, in the course of your employment with the Company, you will become familiar with the Company’s and the Company Affiliates’ trade secrets and other Confidential Information as well as the Company’s customer information and goodwill, and that your services will be of special, unique, and extraordinary value to the Company and the Company Affiliates. Therefore, you agree that, during the Employment Period and any other period during which you are employed by the Company or any of its Affiliates, whether pursuant to this letter agreement or otherwise, plus an additional six (6) months after your separation (the “Restriction Period”) (regardless of the reason for your separation from the Company and whether caused by you or the Company), you will not (x) in the United States or any other country where, as of the time at issue, the Company or any of the Company Affiliates conducts business or (y) anywhere else that, during the then prior two-year period, the Company or any of the Company Affiliates has spent time and resources in connection with expanding its business, directly or indirectly, either on your own behalf or on behalf of any other person, firm or entity: engage in, or own, manage, operate, work as an employee for, consult with, provide services or financing to, or join, control or participate in the ownership, management, operation or control of, any business (whether in corporate, proprietorship or partnership form or otherwise) that is engaged in. the business of (i) electric vehicle charging, broadband or electrical contracting infrastructure or (ii) such other business in which the Company or any Company Affiliates with which you worked was engaged at any time during the then immediately prior two years.

(b)    Nothing in Section 9(a) will prohibit you from being a passive owner of not more than 2% of the outstanding stock of a publicly-traded corporation, so long as you have no active participation in the business of such corporation.

(c) During the Restriction Period, you also will not:

(i)    induce or attempt to induce any customer, supplier or other business relation of the Company or any of the Company Affiliates to cease doing business with the Company or any of the Company Affiliates, or in any way interfere with

the relationship between any such customer, supplier or business relation, on the one hand, and the Company or any of the Company Affiliates, on the other hand;

(ii)    engage, employ, solicit or contact with a view to the engagement or employment of, any employee, officer or manager of, or full-time consultant to, the Company or any of the Company Affiliates with which you worked or any person who has been an employee, officer or manager of, or consultant to, the Company or any of the Company Affiliates with which you worked, if he or she has been in such a role at any time within the then immediately prior three months; or

(iii)    assist any individual or entity to engage in the conduct referenced in clauses (i) and (ii) immediately above.

10. Enforcement.

(a)    Because the employment relationship between you and the Company is unique and because you have access to Confidential Information, Work Product and Company goodwill, you agree that money damages would be an inadequate remedy for any breach of Section 7, 8 or 9. Therefore, in the event of a breach or threatened breach of Section 7, 8 or 9, the Company may, in addition to its other rights and remedies, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, such provisions (without posting a bond or other security).

(b)    Sections 5, 6, 7, 8 and 9 will expressly survive termination of the Employment Period and this letter agreement. The existence of any claim or cause of action by you against the Company and/or any of the Company Affiliates shall not constitute a defense to the enforcement by the Company of the covenants contained in Section 6(b), 7, 8 or 9, but such claim or cause of action shall be litigated separately.

11.    Notices. All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim or other communication hereunder will be deemed duly given (a) upon delivery, if delivered personally to the recipient, against written receipt therefor, or (b) upon the first Business Day after the date sent, if sent priority next Business Day delivery to the intended recipient by a reputable express courier service (charges prepaid) and addressed to the intended recipient as set forth below:

If to the Company, to:

Attention: Jamie Yung and/or Craig Denson Charge Enterprises, Inc.

125 Park Ave, 25^th Floor New York, NY 10017

If to you, to the address appearing in the Company’s records.

Any party hereto may send any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using any other means, but no

such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received and acknowledged by the intended recipient. Any party hereto may change the address (or add new parties and their addresses) to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner set forth in this Section 11.

12.    Representations and Warranties. You hereby represent and warrant to the Company that (a) the execution, delivery and performance of this letter agreement by you does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which you are a party or any judgment, order or decree to which you are subject, (b) you are not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, confidentiality agreement or similar agreement with any other person or entity that is inconsistent with the provisions of this letter agreement or that would limit you in your duties hereunder, (c) upon the execution and delivery of this letter agreement by the Company and you, this letter agreement will be a valid and binding obligation of you and (d) you are able to perform the services described in this letter agreement. The Company hereby represents and warrants to you that (i) the execution, delivery and performance of this letter agreement does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which it is a party or any judgment, order or decree to which it is subject and (ii) upon the execution and delivery of this letter agreement by the Company and you, such agreements will be valid and binding obligations of the Company.

13.    Lock-Up Agreement. In connection with a registration with the United States Securities and Exchange Commission under the Securities Act of the public sale of shares of Common Stock, you shall not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time prior to the effective date of such registration and continuing through and following the effective date of such registration (not to exceed 90 days) as the Company or the underwriters, as the case may be, shall specify. You agree that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce the provisions of this Section. You shall execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering.

14. General Provisions.

(a)    Severability. It is the desire and intent of the parties hereto that the provisions of this letter agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this letter agreement will be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, will be ineffective, without invalidating the remaining provisions of this letter agreement or affecting the validity or enforceability of this letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it will, as to such jurisdiction, be so narrowly drawn, without invalidating the

remaining provisions of this letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

(b)    Complete Agreement. This letter agreement and any schedules or exhibits expressly constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes and pre-empts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

(c)    Successors and Assigns. The Company may freely assign this letter agreement, including to any Affiliate or in connection with any merger or sale of equity or assets, and upon such assignment the references herein to the Company shall be deemed to include the assignee. You may not assign your rights and obligations under this letter agreement without the prior written consent of the Company. Except as otherwise provided herein, this letter agreement will be binding upon and inure to the benefit of you and the Company and our respective successors, permitted assigns, personal representatives, heirs and estates, as the case may be.

(d)    Governing Law. This letter agreement will be governed by and construed in accordance with the domestic laws of Pennsylvania, without giving effect to the choice of law provisions thereof. The parties agree that any dispute under this letter agreement may be brought in the federal and state courts sitting in Pennsylvania and by this letter agreement the parties expressly consent to such courts’ jurisdiction.

(e)    Amendment and Waiver. The provisions of this letter agreement may be amended and waived only with the prior written consent of the Company (with the approval of the Board) and you, and no course of conduct or failure or delay in enforcing the provisions of this letter agreement will affect the validity, binding effect or enforceability of this letter agreement or any provision hereof.

(f)    Headings. The section headings contained in this letter agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this letter agreement.

(g)    Counterparts. This letter agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same instrument. The signatures of any of the persons executing this letter agreement may be transmitted via facsimile or other electronic means and shall be sufficient evidence of the execution of this letter agreement.

(h) 409A Provision.

(i)    For purposes of this letter agreement the term “termination of employment” and similar terms relating to your termination of employment mean a “separation from service” as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder (“Section 409A”). The Company and you intend that this letter agreement comply in form and operation with the requirements of Section 409A,

and all provisions of this letter agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. To the extent permitted by applicable Department of Treasury/Internal Revenue Service guidance, or law or regulation, the Company and you will take reasonable actions to reform this letter agreement or any actions taken pursuant to their operation of this letter agreement in order to comply with Section 409A.

(ii)    For purposes of Section 409A, each of the payments that may be made hereunder is designated as a separate payment. To the extent that the Company determines that any payment or benefit pursuant to this letter agreement constitutes deferred compensation (within the meaning of Section 409A), such payment or benefit shall be made at such times and in such forms as the Company determines are required to comply with Section 409A and the Treasury Regulations and any applicable guidance thereunder. If, as of the date of your termination of employment, you are a “specified employee” within the meaning of Section 409A, then to the extent necessary to comply with Section 409A and to avoid the imposition of taxes and/or penalties under Section 409A, payment to you of any amount or benefit under this letter agreement or any other Company plan, program or agreement that constitutes “nonqualified deferred compensation” under Section 409A and which under the terms of this letter agreement or any other Company plan, program or arrangement would otherwise be payable as a result of and within six (6) months following such termination shall be delayed, as provided under current regulatory requirements under Section 409A, until the earlier of (i) five (5) calendar days after the Company receives notification of your death or (ii) the first Business Day of the seventh month following the date of your termination of employment. All tax gross-up payments provided under this letter agreement or any other agreement with you shall be made or provided by the end of your taxable year following your taxable year in which you remit the related taxes.

(iii)    Except as otherwise permitted by Section 409A, the benefits and reimbursements provided to you under this letter agreement and any Company plan or policy during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this letter agreement or any Company plan or policy in any other calendar year, and the right to such benefits and reimbursements cannot be liquidated or exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto. Further, in the case of reimbursement payments, reimbursement payments shall be made to you as soon as practicable following the date that the applicable expense is incurred and proper documentation is provided to the Company, but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred.

(i)“    Business Day” Defined. For purposes of this letter agreement, the capitalized term “Business Day” shall mean any calendar day other than a Saturday, Sunday or other day on which banks in New York, New York are authorized or required to be closed.

(j)    Clawback Acknowledgement. This letter agreement and the compensation payable hereunder, as applicable, shall be subject to any applicable clawback or recoupment policies, stock ownership policies, share trading policies, and other codes of conduct and written policies that are in place as of the Effective Date and as may be revised or implemented by the Company from time to time as applicable to officers of the Company, in each case after consultation with you. For the avoidance of doubt, notwithstanding any other provision herein, any incentive compensation awarded to you that is subject to recovery under any law, government regulation, stock exchange listing requirement or recoupment policy adopted by the Company will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, stock exchange listing requirement or recoupment policy adopted by the Company (including a policy adopted by the Company in response to any such law, government regulation or stock exchange listing requirement).

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If this letter agreement correctly expresses our mutual understanding, please sign and date a copy of this letter agreement and return it to the Company.

Very truly yours, Charge Enterprises, Inc.

By:                   Name: Craig Denson

Title: Chief Executive Officer and Chief Operating Officer

The terms of this letter agreement are accepted and agreed to as of the date set forth below by:

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James Biehl

11-03-2023

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Date

EXHIBIT A

Form of Release RELEASE

This Release (“Release”) is delivered by [Executive] on this          day of          , 20 .

DEFINITIONS

A.    As used herein, unless otherwise specified, the term “Employer” shall mean Charge Enterprises, Inc., and the term “Employer Group” shall mean Employer; all of its affiliates, successors, predecessors, assigns, parents, subsidiaries, and divisions (whether incorporated or unincorporated); and all of its and their past and present owners, directors, officers, trustees, shareholders, managers, employees and agents (in their individual and representative capacities).

B.    As used herein, unless otherwise specified, the term “Employee” shall mean [Executive], and the term “Employee Representatives” shall mean all of Employee’s heirs, family members, executors, accountants, administrators, attorneys, agents, assigns, successors and representatives.

RECITALS

WHEREAS, Employee’s employment ended on          , 20 ; and

WHEREAS, it is a condition to Employee’s receipt of certain post-employment benefits (“Conditional Benefits”) under Sections 5 of the letter agreement, dated [         ], 2023 (the “Employment Agreement”), between Employee and Employer that Employee execute and not revoke this Release.

NOW THEREFORE, in consideration of the promises, representations and mutual covenants contained in this Release, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, it is agreed as follows:

1.    Consideration. Employee acknowledges that the Conditional Benefits are in excess of any earned wages or benefits due and owing to Employee, and would not be paid or provided unless Employee executed this Release. Employee acknowledges and agrees that the Conditional Benefits are adequate and independent consideration for Employee executing this Release and releasing any and all claims against Employer.

2.    Release of All Claims. In consideration of the above, and the other promises set forth in this Release, Employee, on behalf of himself and all of the Employee Representatives, fully and forever waives, releases, acquits and discharges Employer and the other members of the Employer Group from and for all manner of claims, actions, suits, charges, demands, grievances and/or causes of action, in law or in equity, existing by reason of and/or based upon any fact or set of facts, known or unknown, existing from the beginning of time through the date of Employee’s

execution of this Release relating to and/or arising out of the Employment Agreement, Employee’s employment with Employer and/or the cessation of Employee’s employment with Employer (collectively, the “Released Claims”), including, but not limited to, all claims, actions, suits, charges, demands, grievances and/or causes of action (x) for wages, compensation, liquidated damages, commissions, bonuses, benefits, sums of money, damages of every type, costs, attorney fees, judgments, and executions, (y) alleging wrongful discharge, breach of contract, breach of implied contract, breach of the covenant of good faith and fair dealing, tortious interference with contract or business relationships, assault, battery, invasion of privacy, misappropriation of trade secrets, promissory estoppel, unjust enrichment, loss of consortium, violation of the penal statutes, negligent or intentional infliction of emotional distress, negligence, defamation, retaliation and/or discrimination and/or harassment on account of age, sex, sexual orientation, creed, religion, race, color, national origin, sensory disability, mental disability, physical disability, veteran or military status, marital status, or any other classification recognized under all applicable discrimination laws, or (z) brought under common law or civil rights or other statutes, including Title VII of the Civil Rights Act of 1964 (“Title VII”), the Age Discrimination in Employment Act (“ADEA”) (as amended by the Older Workers Benefits Protection Act (“OWBPA”)), the Family and Medical Leave Act (“FMLA”), the Employee Retirement Income Security Act (“ERISA”), the Rehabilitation Act of 1973, the Americans with Disabilities Act (“ADA”), the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Workers Adjustment Retraining Notification Act (“WARN”), the Equal Pay Act (“EPA”), the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), the National Labor Relations Act (“NLRA”), the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law,¹ and any and all other federal, state, local statutes, ordinances, and laws, and every type of relief (legal, equitable and otherwise), available to Employee. Employee covenants and agrees that he will not pursue or allege any claim, matter or cause of action in violation of, and/or released under, this Release. Notwithstanding the foregoing or anything contained below, nothing in this Release shall be construed as releasing Employer from, and the Released Claims shall not include: (a) any obligation to pay those amounts due to Employee under Section 5(a) or 5(b) of the Employment Agreement, subject to the terms and conditions thereof; (b) Employee’s rights to enforce the terms of the Employment Agreement that survive the termination of the Employment Period (as defined in the Employment Agreement) or Employment Agreement; (c) Employee’s rights described in Section 5(e) of the Employment Agreement; (d) Employee’s non-forfeitable rights to accrued benefits (within the meaning of Sections 203 and 204 of ERISA), (e) Employee’s right to indemnification or exculpation under the Employment Agreement, Employer’s policies or law with respect to Employee’s service as a director or officer of Employer (including without limitation any such rights under Employer’s Certificate of Incorporation, By-laws and Directors and Officers Liability Insurance coverage); (f) any claims that by law cannot be waived by private agreement without judicial or governmental supervision; or (g) Employee’s right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission (“EEOC”) or other government agency; provided that even though Employee can file a charge or participate in an investigation or proceeding conducted by the EEOC or other government agency, by executing this Release, Employee is waiving his ability to obtain relief of any kind from the Employer Group to the extent permitted by law.

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¹ [Applicable state laws to be added based on Executive’s work location and residence at time of separation.]

3.    Covenant Not to Sue. Employee represents that he has not filed any action, charge, suit, or claim against Employer or any other member of the Employer Group with any federal, state or local agency or court relating to any Released Claim. Employee further agrees that should any claims, charges, complaints, suits or other actions be filed hereafter on his behalf by any federal, state or local agency or by any other person or entity with respect to a Released Claim, he will immediately withdraw with prejudice, or cause to be withdrawn with prejudice, and/or dismiss with prejudice, or cause to be dismissed with prejudice, any such claims, charges, complaints, suits or other actions filed against Employer. Employee further agrees that, to the fullest extent permitted by law, Employee shall receive no relief of any type (monetary, equitable, or otherwise) from Employer with respect to, relating to and/or on account of any such claims, matters or actions. Employee agrees to opt-out of, and not opt-in to, any class action or collective action filed against Employer to the extent related to a Released Claim.

4.    Confidentiality. To the fullest extent permitted by law, Employee agrees to keep confidential all facts, opinions, and information which relate in any way to Employee’s employment and/or cessation of employment with Employer, as well as the terms of this Release; provided however, Employee may discuss the terms of this Release with his spouse, legal representative, and/or tax preparer, each of whom must also agree to maintain confidentiality and comply with this Section 4. Notwithstanding anything herein to the contrary, Section 7(e) of the Employment Agreement will apply to this Release and nothing contained herein shall prevent Employee from making truthful statements to any government authority or agency.

5.    Return of Employer’s Property. Employee represents that he has returned to Employer any and all property, records, papers, documents and writings, in whatever form, of Employer in Employee’s possession and/or control, and that he has not retained any copies thereof, in whatever form.

6.    Non-Disparagement. Employee agrees not to disparage the Employer, its affiliates or the Employer’s or its affiliates’ officers, directors, employees, shareholders, parents, subsidiaries, affiliates, and agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation, and the Employer agrees to direct its officers and directors not to disparage Employee in any manner likely to be harmful to Employee in any manner including Employee’s business reputation or personal reputation; provided that Employee and the Employer may respond accurately and fully to any question, inquiry, or request for information when required by legal process or in connection with a government investigation. In addition, nothing in this provision or this Agreement is intended to prohibit or restrain Employee in any manner from making disclosures that are protected under the whistleblower provisions of federal or law or regulation.

7. Cooperation.

(a)    To the fullest extent permitted by law, Employee will not cooperate with, or assist in, any claim, charge, lawsuit, or arbitration against the Employer Group with respect to a Released Claim, unless required to do so by a lawfully issued subpoena, by court order or as expressly provided by regulation or statute. In the event Employee is served with a subpoena or is required by court order or otherwise to testify in any type of proceeding involving Employer and

related to a Released Claim, unless prohibited by applicable law from doing so, Employee shall immediately advise Employer in writing of same.

8.    Employee agrees to cooperate with the Employer Group in any internal investigation, administrative, regulatory, or judicial proceeding or any dispute with a third party. Employee’s cooperation may include being available to Employer upon reasonable notice for interviews and factual investigations, appearing at Employer’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to Employer pertinent information, and turning over to Employer all relevant documents which are or may come into Employee’s possession. Employee understands that in the event Employer asks for Employee’s cooperation in accordance with this provision, Employer will reimburse his for reasonable travel expenses (including lodging and meals) upon submission of receipts acceptable to Employer.

9.    ADEA Notice and Acknowledgement. Employee acknowledges that he has carefully read this Release and fully understands its contents. Prior to signing this Release, Employee has been advised in writing hereby and has had an opportunity to consult with his attorney of choice concerning the terms and conditions of this Release with regard to any claim or right Employee may have under the ADEA or otherwise. Employee has been offered at least [21/45] days to review and consider this Release. Employee may voluntarily and knowingly waive this [21/45]-day period, or any part thereof, if he signs this Release prior to the expiration of [21/45] days. After signing this Release, Employee shall have seven days from the signing date to revoke this Release. This Release shall not be effective (including for purposes under the Employment Agreement) until after the seven-day revocation period has expired. Any revocation must be made in writing and delivered to the Chief Legal Officer of Employer. Until all applicable periods set forth in this Section 7 have expired, Employer shall not be required to make any payment to Employee which payment is, under Sections 5(a) or 5(b) of the Employment Agreement, contingent upon the signing and delivery to the Company of this Release. By signing this Release, Employee agrees and understands that he is waiving and releasing any and all rights he may have to pursue the Released Claims against Employer, from the beginning of time up to the effective date of this Release, including, without limitation, all ADEA claims.

10.    Governing Law.² law shall govern this Release, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of .

11.    Successors and Assigns. This Release shall inure to the benefit of the successors and assigns of Employer.

12.    Severability. If any portion of this Release is ruled unenforceable, all remaining portions of this Release shall remain valid.

13.    No Reliance; No Waiver. Employee represents that he is not relying on any representation, statement, or promise of Employer or any other party in giving this Release. This

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² [Governing law to be added based on Executive’s work location and residence at time of separation.]

Release may not be amended, modified, waived, or terminated except in a writing signed by Employee and an authorized representative of Employer.

14.    Headings. The paragraph and section headings in this Release are inserted merely for the convenience of reference only and shall not be used to construe, affect or modify the terms of any paragraph or provision of this Release.

EMPLOYEE WITHOUT ANY DURESS OR COERCION FREELY, KNOWINGLY AND VOLUNTARILY ENTERS INTO, AND GIVES THIS RELEASE. EMPLOYEE UNDERSTANDS AND AGREES WITH ALL OF THE PROVISIONS AND THE TERMS STATED IN THIS RELEASE AND HAS BEEN AFFORDED SUFFICIENT AND REASONABLE TIME TO CONSIDER WHETHER TO ENTER INTO THIS RELEASE. EMPLOYER ADVISES EMPLOYEE TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOOSING PRIOR TO EXECUTING THIS RELEASE WHICH CONTAINS A RELEASE AND WAIVER.

Dated:          

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EX-10.3

Exhibit 10.3

Craig Denson

[OMITTED]

[OMITTED]

Dear Mr. Denson:

CHARGE ENTERPRISES, INC. 125 PARK AVE., 25^th FLOOR NEW YORK, NY 10017

November 6, 2023

This letter sets forth our agreement with respect to your continued employment (hereinafter

“letter agreement”) with Charge Enterprises, Inc., a Delaware corporation (the “Company”).

1.    Employment. Your employment with the Company will be upon the terms and conditions set forth in this letter agreement effective August 29, 2023 (the “Effective Date”) and ending as provided in Section 4 (the “Employment Period”).

2.    Position and Duties. During the Employment Period, you will serve as Chief Operating Officer of the Company as well as interim Chief Executive Officer (“interim CEO”) until a successor Chief Executive Officer (“Successor CEO”) is appointed by the Board of Directors of the Company (the “Board”). You will have the usual and customary duties, responsibilities, and authorities of a person in such positions and such other duties assigned to you by the Board or the Successor CEO which are consistent with your positions. You will report directly to the Board during the time you hold the position of interim CEO, and thereafter you shall report directly to the Successor CEO. You will devote your full working time, efforts, and attention to, and diligently and conscientiously perform the duties of, such positions. In addition to performing such duties for the Company, you may be required to perform similar duties for the Company’s existing subsidiaries or affiliates, and/or any subsidiaries and/or affiliates which may be formed or acquired from time to time in the future, (collectively, all such subsidiaries and/or affiliates, including subsidiaries formed after the date hereof, shall be referred to as the “Company Affiliates”). Except for travel for business purposes, you will be employed, and your primary offices will be located, at your home office. You represent to the Company that you are not subject to or a party to any employment agreement, non-competition covenant, or other agreement that would be breached by, or prohibit you from executing, this letter agreement and performing fully your duties and responsibilities hereunder.

3. Compensation.

(a)    Base Salary; Interim Cash Bonus. During the Employment Period, your base salary will be $400,000 per annum (your “Base Salary”). Your Base Salary will be payable in regular installments in accordance with the Company’s general payroll practices and subject to withholding and other payroll taxes. Your Base Salary may be reviewed annually (consistent with the Company’s past practice and timing) by the Board during your term as interim CEO and upon the appointment of the Successor CEO, the Compensation Committee of the Board (the “Compensation Committee”) in consultation with the Successor CEO and such other officers designated by the Compensation Committee and may be increased by the Compensation

Committee (or the Board during your term as interim CEO) in its sole discretion (for the avoidance of doubt, such increased amount shall be considered your “Base Salary” for all purposes of this letter agreement). Unless agreed by you in writing, your Base Salary may not be decreased below your then current Base Salary by the Board, Compensation Committee or otherwise. Effective September 1, 2023, for each full or partial fiscal quarter you serve as interim CEO, you shall be entitled to receive a cash bonus of $25,000 payable in the next payroll period immediately following such fiscal quarter, subject to withholding and other payroll taxes (“Interim Cash Bonus”). The Interim Cash Bonus for the third quarter ended September 30, 2023, shall be prorated from September 1, 2023 but any partial fiscal quarter you serve as interim CEO in any subsequent fiscal quarter shall not be prorated.

(b)    Cash Incentive Plan. With respect to each fiscal year of the Company ending during the Employment Period, you shall be eligible to earn an incentive award (an “Annual Incentive Award”) under the Company’s bonus program, cash incentive plan (once established), or any successor plan (the “Cash Incentive Plan”) pursuant to the terms and conditions of the Cash Incentive Plan. For fiscal year 2023, 50% of your Annual Incentive Award shall be determined by the Board and the Compensation Committee in their discretion and 50% shall be determined based on your satisfaction of certain objectives that shall be established by the Compensation Committee. Prior to, at or effective as of the beginning of each fiscal year of the Company after fiscal year 2023, the Compensation Committee (and during your term as interim CEO, the Board) shall determine your target Annual Incentive Award, taking into consideration such factors as the Compensation Committee (or the Board) deems appropriate. Your target Annual Incentive Award under the Cash Incentive Plan for fiscal year 2023 shall be 100% of Base Salary. For the avoidance of doubt, in the event of any conflict between term definitions in this Section 3(b) and the Cash Incentive Plan, the definitions in this letter agreement shall control.

(c)    Target Compensation after Fiscal Year 2023. Your awards under the Cash Incentive Plan and the Company’s 2020 Omnibus Equity Incentive Plan (“Equity Plan”) shall be reviewed annually by the Compensation Committee (and during your term as interim CEO, the Board) pursuant to the normal performance review policies for the interim CEO, and/or Chief Operating Officer, with such targets and objectives established by the Compensation Committee (or the Board) in its sole discretion.

(d)    Employee Benefits. During the Employment Period, you will be entitled to participate in all employee benefit programs, including without limitation health/medical insurance, for which senior executive employees of the Company are generally eligible, subject to applicable plans and policies as may be amended from time to time, in the sole discretion of the Board. During the Employment Period, you will be entitled to 27 days paid time off (“PTO”) during each calendar year, to be used and managed consistent with applicable Company policy. PTO shall accrue evenly over the course of each calendar year during the Employment Period.

(e)    Expenses. The Company shall reimburse you for all reasonable out-of- pocket business expenses incurred by you on behalf of the Company during the Employment Period, in accordance with applicable policies of the Company; provided that you properly account to the Company for all such expenses in accordance with the policies of the Company and the rules, regulations and interpretations of the U.S. Internal Revenue Service relating to reimbursement of business expenses (“Expenses”).

(f)    Insurance. During the Employment Period, the Company will maintain Directors and Officers Liability Insurance coverage that includes coverage of you, subject to the terms and conditions of such policy and with limits customary for similarly situated companies.

(g) Equity and Cash Retention Bonuses.

(i)    In connection with your entering into this letter agreement, the Company shall grant to you, on the date which is two full trading days following the filing of the Company’s next Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 (the “Grant Date”), under the Company’s Equity Plan, an option (the “Option”) to purchase up to a number of shares (each, an “Option Share”) of the common stock, par value $0.0001 per share (the “Common Stock”), of the Company, with a value equal to $200,000 based on a Black-Scholes calculation, at a per Option Share purchase (exercise) price equal to the Fair Market Value of the Common Stock on the Grant Date (as Fair Market Value is defined in the Equity Plan). The Option shall have a term of ten years and, except as provided in Sections 3(g)(iii), 5(a)(iv) and 5(b)(iv) below, shall vest as follows: 1/3 on March 1, 2024: 1/3 three (3) months following the effective date of the appointment of the Successor CEO; and 1/3 on the first anniversary of the effective date of the appointment of the Successor CEO (each, a “Vesting Date”), provided that you are employed by the Company on the relevant Vesting Date, and otherwise subject to the provisions of the Equity Plan. For the avoidance of doubt, except as provided in Sections 3(g)(iii), 5(a)(iv) and Section 5(b)(iv) below, in the event you terminate employment with the Company prior to full vesting of the Option, the unvested portion of the Option will expire and terminate in full as of such termination and you will not have any right to exercise the unvested portion of the Option. The vested portion of the Option will be exercisable for the period and under the terms provided in the Equity Plan. The number of Option Shares and purchase price shall be adjusted in the event of any stock splits, mergers, consolidations, or similar transactions. The Option shall be evidenced by a Stock Option Agreement (the “Option Agreement”). In the event of any conflict between the provisions of this Section 3(g) and the provisions of the Equity Plan, the provisions of the Equity Plan shall govern. In the event of any conflict between the provisions of this Section 3(g) and the provisions of the Option Agreement, the provisions of this Agreement shall govern.

(ii)    Provided that you are employed by the Company pursuant to this Agreement on the applicable date (except as provided in Section 3(g)(iii) below), you shall also be entitled to a cash bonus payable as follows: $133,000 on each of the first and second Vesting Date, and $134,000 on the third Vesting Date, subject to withholding and other payroll taxes (“Retention Cash Bonus”).

(iii)    For the sake of clarity, you shall remain entitled to the foregoing equity and cash retention bonuses if you are appointed the Successor CEO by the Board. Furthermore, if the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, then any remaining unvested Option Shares shall fully vest immediately (subject to the

terms of the Equity Plan and this Agreement), and any remaining Retention Cash Bonus shall be deemed fully earned and payable (not to exceed $400,000 in the aggregate). The Retention Cash Bonus payable hereunder shall be paid in the first regular pay date occurring at least five business day after the Termination Date (as defined in Section 5(f) below).

4. Termination.

(a)    You are employed on an at-will basis, for no set period of time. The Employment Period (i) will automatically terminate upon your death, (ii) may be terminated by the Company upon Notice of Termination (as defined in Section 5(f) below) delivered to you as a result of your Disability (as defined in Section 5(h) below), (iii) may be terminated by the Company upon Notice of Termination at any time for Cause (as defined in Section 5(g) below),

(iv) may be terminated by you upon Notice of Termination for Good Reason (as defined in Section 5(i) below) and (v) may be terminated by the Company upon Notice of Termination without Cause.

(b)    Effective as of the date of any Termination Date, you shall be deemed, without any further action on your part, to have automatically resigned from all Company-related positions, including as an officer of the Company and Company Affiliates.

5. Severance.

(a)    If the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, then, unless Section 5(b) applies, you will be entitled to receive:

(i)    your Base Salary as in effect at the time of such termination to the extent such amount has accrued through the Termination Date and remains unpaid, any fully earned and declared but unpaid Annual Incentive Award as of the Termination Date, any unpaid Interim Cash Bonus in accordance with Section 3(a) hereof, any unpaid Retention Cash Bonus in accordance with Section 3(g) hereof, and any unpaid Expenses in accordance with Section 3(e) hereof that have not been reimbursed by the Company as of the Termination Date that were incurred prior to the Termination Date (the sum of these amounts, the “Accrued Obligations”);

(ii)    an amount equal to 12 months of your Base Salary, less applicable withholdings, which shall be payable in the same amounts and at the same intervals as if the Employment Period had not ended;

(iii)    if your Termination Date occurs more than six months after the beginning of the then-current fiscal year, a prorated Annual Incentive Award in respect of the fiscal year in which the Termination Date occurs in an amount equal to the product of (A) the Annual Incentive Award, if any, that you would have received for such fiscal year if you had remained employed through the date on which the Annual Incentive Award is to be paid, and (B) a fraction, the numerator of which is the number of calendar days you were employed by the Company during such fiscal year and the denominator of which is 365, which amount shall be paid in the same manner and at the same time that the Company pays other

Company executive incentive awards under the Annual Incentive Plan for such fiscal year;

(iv)    subject to Section 3(g)(iii), any time-based vesting equity awards granted to you under the Equity Plan that would have vested in the 24-month period following the Termination Date shall immediately become vested upon your Termination Date;

(v)    the Company will extend the post-termination exercise period with respect to all stock options held by you until the earlier of (A) the date that is two

(2) years after the Termination Date, or (B) the original expiration date of the stock options; and

(vi)    if you timely elect continued coverage pursuant to COBRA, the Company will reimburse you for a portion of the monthly COBRA premium such that you are paying the same premium cost as active employees of the Company until the earliest to occur of (A) the date that is twelve (12) months after the Termination Date, or (B) the date on which you are no longer eligible for COBRA coverage, provided that the Company may modify the subsidized COBRA continuation coverage contemplated herein to the extent the Company determines necessary to ensure compliance with the non-discrimination requirements of Section 105(h) of the Code.

The Company’s obligation to make the payments to you described in clauses (ii), (iii), (iv), (v) and (vi) of this Section 5(a) is conditioned upon your executing and delivering, no later than 45 days following the Termination Date (and not revoking), a release relating to your employment by the Company in favor of the Company, the Company Affiliates and their respective stockholders, officers, members, managers, directors, employees, subsidiaries and affiliates substantially in the form attached as Exhibit A (a “Release”); provided, further, that until the period to revoke such Release has expired, the Company shall retain any payments that would otherwise be made pursuant to clauses (ii), (iii), (iv), (v) and (vi) of this Section 5(a), with such payment being made on the next regularly scheduled payroll date after such revocation period expires.

(b)    Change in Control Termination. If the Employment Period is terminated by the Company without Cause (other than due to your Disability) or by you for Good Reason, in each case, within three months prior, upon or within 12 months following the consummation of a Change in Control (as defined below), then, subject to your execution and non-revocation of a Release in the manner provided in Section 5(a) above (except for the payments described in clause

(i) of this Section 5(b), which shall not be subject to such Release requirement), you will be entitled to receive in lieu of the severance pay and benefits described in Section 5(a) above:

(i) the Accrued Obligations;

(ii)    an amount equal to two times (2x) your annual Base Salary, less applicable withholdings, which shall be paid (A) if the Termination Date is within three months prior to the consummation of a Change in Control, in the same amounts (taking the 2x multiple into account) and at the same intervals as if the Employment Period had not ended, or (B) if the Termination Date is within 12

months following the consummation of a Change in Control, in a single lump sum cash payment within two and a half (2-1/2) months following the Termination Date;

(iii)    an amount equal to two times (2x) your target Annual Incentive Award either for the year in which the Termination Date occurs (or if it has not yet been established, the target Annual Incentive Award established for the immediately preceding year), which shall be paid (A) if the Termination Date is within three months prior to the consummation of a Change in Control, in the same manner and at the same time that the Company pays other Company executive incentive awards under the Incentive Plan after the Termination Date, or (B) if the Termination Date is within 12 months following the consummation of a Change in Control, in a single lump sum cash payment within two and a half (2-1/2) months following the Termination Date;

(iv)    subject to Section 3(g)(iii), any time-based vesting equity awards granted to you under the Equity Plan shall immediately become vested upon your Termination Date;

(v)    the Company will extend the post-termination exercise period with respect to all stock options held by you until the earlier of (A) the date that is two

(2) years after the Termination Date, or (B) the original expiration date of the stock options; and

(vi)    if you timely elect continued coverage pursuant to COBRA, the Company will reimburse you for a portion of the monthly COBRA premium such that you are paying the same premium cost as active employees of the company until the earliest to occur of (A) the date that is eighteen (18) months after the Termination Date, or (B) the date on which you are no longer eligible for COBRA coverage, provided that the Company may modify the subsidized COBRA continuation coverage contemplated herein to the extent the Company determines necessary to ensure compliance with the non-discrimination requirements of Section 105(h) of the Code.

(c)    For purposes of this letter agreement, a “Change in Control” shall be deemed to occur when and only when any of the following events first occurs: (A) any person becomes the beneficial owner, directly or indirectly, of securities of the Company representing 30% or more of the combined voting power of the Company’s then outstanding voting securities;

(B) a majority of the members of the Board are replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of such Board prior to the date of the appointment or election; or (C) any merger (other than a merger where the Company is the survivor and there is no accompanying Change in Control under clauses (A) or (B)), consolidation, liquidation or dissolution of the Company, or the sale of all or substantially all of the assets of the Company; provided, however, that a Change in Control shall not be deemed to occur unless the event also constitutes a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company for purposes of Treasury Regulation Section 1.409A-3(i)(5). Notwithstanding the foregoing, a Change in Control shall not be deemed to occur pursuant to clause (A) solely because 50% or more of the combined voting power of the Company’s outstanding securities is acquired by (I) one or more

employee benefit plans maintained by the Company or by any other employer, the majority interest in which is held, directly or indirectly, by the Company or (II) any person who is the beneficial owner of securities of the Company representing 30% or more of the combined voting power of the Company’s then-outstanding voting securities. For purposes of this paragraph, the terms “person” and “beneficial owner” shall have the meaning set forth in Sections 3(a) and 13(d) of the Exchange Act, and in the regulations promulgated thereunder.

(d)    Termination Due to Cause, Death, or Disability. If the Employment Period is terminated by the Company for Cause or by you other than for Good Reason, the Company will pay you the Accrued Obligations as of the Termination Date. If the Employment Period is terminated due to your Disability (as defined in Section 5(h) below) or death, the Company will pay you or your estate, whichever is applicable, the Accrued Obligations as of the Termination Date. Except as set forth in Section 5(e), upon delivery of the payments described in this Section 5(d), the Company will have no further obligation to you under this letter agreement or otherwise with respect to your employment with the Company.

(e)    Except as otherwise required by law or as specifically provided herein, all of your rights to salary, severance, fringe benefits, bonuses and any other amounts hereunder (if any) accruing after the termination of the Employment Period will cease upon the Termination Date. In the event the Employment Period is terminated, your sole remedy, and the sole remedy of your successors, assigns, heirs, representatives, and estate, will be to receive the payments described in this letter agreement. Notwithstanding the foregoing, the following rights will survive any termination of the Employment Period: (i) your rights to accrued and vested benefits under any benefit plan of the Company or any of the Company Affiliates, or as set forth in any other agreement between you and the Company or any of the Company Affiliates, (ii) your right to continued participation in the Company’s health and welfare plans, except as otherwise provided in Sections 5(a)(vi) and 5(b)(vi), at your own expense pursuant to COBRA, (iii) your right to indemnification in respect of your service as a director or officer of the Company or any of the Company Affiliates, to the maximum extent provided under the Company’s Certificate of Incorporation and By-laws and Indemnity Agreement with the Company (each, as they may be amended from time-to-time), the Company’s Directors and Officers Liability Insurance coverage, and any other agreement between you and the Company, (iv) your rights in respect of shares of Common Stock that you hold and (v) your rights in respect of any equity-based awards that remain outstanding following the Employment Period (subject to the provisions of this letter agreement and any equity plan or award agreement that governs the terms of such equity-based awards).

(f)    Any termination of the Employment Period by the Company (other than termination upon your death) or by you must be communicated by written notice (in either case, a “Notice of Termination”) to you, if the Company is the terminating party, or to the Company, if you are the terminating party. For purposes of this letter agreement, “Termination Date” means

(i) if the Employment Period is terminated due to your death, the date of your death and (ii) if the Employment Period is terminated due to your Disability, by the Company (for Cause or without Cause) or by you (for Good Reason or without Good Reason), the date specified in the Notice of Termination (which may not be earlier than the date of such Notice of Termination). Notwithstanding anything contained herein to the contrary, any termination of the Employment Period by you must be communicated to the Company no less than 30 days prior to the intended

Termination Date; provided, however, that the Company’s decision to shorten or eliminate the notice period shall not constitute a termination by the Company.

(g)    For purposes of this letter agreement, “Cause” means any one of the following: (i) a material breach by you of this letter agreement, (ii) your conviction of, guilty plea to, or confession of guilt of, a felony, (iii) materially fraudulent, dishonest or illegal conduct by you in the performance of services for or on behalf of the Company or any of the Company Affiliates, (iv) any repeated conduct by you in material violation of Company written policy, (v) any conduct by you that is materially detrimental to the reputation of the Company or any of the Company Affiliates, (vi) your misappropriation of funds of the Company or any of the Company Affiliates, (vii) your gross negligence or willful misconduct or willful failure to comply with written directions of the Board which directions are within the scope of your duties hereunder, or

(viii) your engaging in discrimination, sexual or other harassment, retaliation, or any conduct involving an act of moral turpitude. A purported termination of your employment for Cause shall not be effective unless (A) the Company provides written notice to you of the facts alleged by the Company to constitute Cause and such notice is delivered to you no more than 90 days after the Company has actual knowledge of such facts and (B) you have been given an opportunity of no less than ten days after receipt of such notice to cure the circumstances alleged to give rise to Cause and the Company has cooperated in good faith with your efforts to cure such condition or circumstance, but only to the extent that such circumstances are reasonably curable.

(h)    For purposes of this letter agreement “Disability” means any accident, sickness, incapacity or other physical or mental impairment that prevents you from performing, with or without reasonable accommodation, the essential functions of your position pursuant to this letter agreement for either (i) 90 consecutive days or (ii) 180 days during any period of 365 consecutive days, in each case as determined in good faith by the Board. During the time periods specified above, the Company will continue to provide you with the compensation stated in Section 3 above.

(i)    For purposes of this letter agreement, “Good Reason” means (i) a material diminution in your authority, title, duties or responsibilities, (ii) the failure of the Company to make all payments due to you under this letter agreement or otherwise or (iii) the relocation of your primary office to a location more than 25 miles from your home office. A purported termination of your employment for Good Reason shall not be effective unless (A) you provide written notice to the Company of the facts alleged by you to constitute Good Reason and such notice is delivered to the Board no more than 60 days after the occurrence of such event, (B) the Company has been given an opportunity of no less than 30 days after receipt of such notice to cure the circumstances alleged to give rise to Good Reason and you have cooperated in good faith with the Company’s efforts to cure such condition or circumstance (which cooperation will not require you to waive or diminish any of your rights hereunder), but only to the extent that such circumstances are reasonably curable, and (c) you elect to terminate the Employment Period within 30 days following the end of the Company’s cure period due to the Company’s failure to cure. For the avoidance of doubt, the appointment of the Successor CEO shall not be deemed a material diminution in your authority, title, duties or responsibilities.

(j)    Notwithstanding anything to the contrary in this letter agreement, if an equity award granted to you under the Equity Plan contains more favorable terms than as provided in this letter agreement, then such more favorable terms shall control.

6. Section 280G. Notwithstanding any other provision of this letter agreement:

(a)    In the event it is determined by an independent nationally recognized public accounting firm that is reasonably acceptable to you, which is engaged and paid for by the Company prior to the consummation of any transaction constituting a 280G Change of Control (which for purposes of this Section 6 shall mean a change in ownership or control as determined in accordance with the regulations promulgated under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), which accounting firm shall in no event be the accounting firm for the entity seeking to effectuate the 280G Change of Control (the “Accountant”), which determination shall be certified by the Accountant and set forth in a certificate delivered to you not less than ten Business Days prior to the 280G Change of Control setting forth in reasonable detail the basis of the Accountant’s calculations (including any assumptions that the Accountant made in performing the calculations), that part or all of the consideration, compensation or benefits to be paid to you under this letter agreement constitute “parachute payments” under Section 280G(b)(2) of the Code, then, if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits to be paid to you under any other plan, arrangement or agreement which constitute “parachute payments” (collectively, the “Parachute Amount”) exceeds the maximum amount that would not give rise to any liability under Section 4999 of the Code, the amounts constituting “parachute payments” which would otherwise be payable to you or for your benefit shall be reduced to the maximum amount that would not give rise to any liability under Section 4999 of the Code (the “Reduced Amount”); provided that such amounts shall not be so reduced if the Accountant determines that without such reduction you would be entitled to receive and retain, on a net after- tax basis (including, without limitation, any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that you would be entitled to retain upon receipt of the Reduced Amount. In connection with making determinations under this Section 6, the Accountant shall take into account any positions to mitigate any excise taxes payable under Section 4999 of the Code, such as the value of any reasonable compensation for services to be rendered by you before or after the 280G Change of Control.

(b)    If the determination made pursuant to Section 6(a) results in a reduction of the payments that would otherwise be paid to you except for the application of this Section 6, the Company shall promptly give you notice of such determination. Such reduction in payments shall be first applied to reduce any cash payments that you would otherwise be entitled to receive (whether pursuant to this letter agreement or otherwise) and shall thereafter be applied to reduce other payments and benefits, in each case, in reverse order beginning with the payments or benefits that are to be paid the furthest in time from the date of such determination, unless, to the extent permitted by Section 409A (as defined in Section 13(h)), you elect to have the reduction in payments applied in a different order; provided that, in no event may such payments be reduced in a manner that would result in subjecting you to additional taxation under Section 409A. Within ten Business Days following such determination, the Company shall pay or distribute to you or for your benefit such amounts as are then due to you under this letter agreement and shall promptly

pay or distribute to you or for your benefit in the future such amounts as become due to you under this letter agreement.

(c)    As a result of the uncertainty in the application of Sections 280G and 4999 of the Code at the time of a determination hereunder, it is possible that amounts will have been paid or distributed by the Company to or for your benefit pursuant to this letter agreement which should not have been so paid or distributed (each, an “Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for your benefit pursuant to this letter agreement could have been so paid or distributed (each, an “Underpayment”), in each case, consistent with the calculation of the Reduced Amount hereunder. In the event that the Accountant, based upon the assertion of a deficiency by the Internal Revenue Service against either the Company or you which the Accountant believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for your benefit shall promptly be repaid by you to the Company together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code; provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which you are subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. In the event that the Accountant, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for your benefit together with interest at the applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

(d)    In the event of any dispute with the Internal Revenue Service (or other taxing authority) with respect to the application of this Section 6, you shall control the issues involved in such dispute and make all final determinations with regard to such issues. The Company will bear all fees and expenses of any audit, suit or proceeding by the IRS or any other taxing authority against the Company or against you, or of any claim for refund, appellate procedure, or suit brought by the Company or you against the IRS or any other taxing authority, in each case relating to the excise tax imposed by Section 4999 of the Code.

7. Confidential Information.

(a)    You will not disclose or use at any time any Confidential Information (as defined below in Section 7(c)), whether or not such information is developed by you, except to the extent that such disclosure or use is required in the performance or exercise by you in good faith of (i) duties assigned to you under this letter agreement or otherwise by the Board, (ii) rights as an employee, officer, director or shareholder of the Company or any of the Company Affiliates or

(iii) rights under any agreement with the Company or any of the Company Affiliates.

(b)    You will deliver to the Company at the termination of the Employment Period, or at any time the Company may request, all memoranda, notes, plans, designs, records, reports, computer files and software and other documents and data (and copies thereof) that are Confidential Information or Work Product (as defined below) or information relating to the business of the Company or the Company Affiliates which you may then possess or have under your control. Upon request, you will also make available to the Company any smartphones or other devices on which you store Company information, so that the Company may remove such information.

(c)    As used in this letter agreement, the term “Confidential Information” means information belonging to the Company or any of the Company Affiliates that is not generally known or available to the public and that is used, developed or obtained by the Company or any of the Company Affiliates in connection with its or their businesses, including without limitation (i) information, observations and data concerning its and their business and affairs, products or services, and fees, costs and pricing structures, (ii) designs, (iii) analyses, (iv) drawings, designs, photographs, artwork and reports, (v) computer software, including operating systems, applications and program listings, (vi) flow charts, manuals and documentation, (vii) databases, (viii) information concerning its accounting and business methods, (ix) inventions, devices, new developments, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (x) other copyrightable works, (xi) all production methods, processes, technology and trade secrets, (xii) product and product candidate formulae and any trade secrets with respect to such products and product candidates and (xiii) all similar and related information in whatever form.

(d)    Notwithstanding the provisions of this letter agreement to the contrary, you will have no liability to the Company for disclosure of Confidential Information if the Confidential Information:

(i)    is in the public domain or becomes publicly known in the industry in which the Company or any of the Company Affiliates operates or is disclosed by the Company or any of the Company Affiliates other than as the result of a breach of this letter agreement or any other agreement by you; or

(ii)    is required to be disclosed by law, court order, or similar compulsion or in connection with any legal proceeding; provided, however, that such disclosure will be limited to the extent so required and, subject to the requirements of law, you will give the Company notice of your intent to so disclose such Confidential Information and will cooperate with the Company in seeking confidentiality protections.

(e)    Notwithstanding the foregoing, nothing in or about this letter agreement prohibits you from (i) filing and, as provided for under Section 21F of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), maintaining the confidentiality of a claim with the Securities and Exchange Commission (the “SEC”); (ii) providing Confidential Information to the SEC, or providing the SEC with information that would otherwise violate this Section 7, to the extent permitted by Section 21F of the Exchange Act; (iii) cooperating, participating or assisting in an SEC investigation or proceeding concerning the Company without notifying the Company; or (iv) receiving a monetary award as set forth in Section 21F of the Exchange Act. Furthermore, you are advised that you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information that constitutes a trade secret to which the Defend Trade Secrets Act (18 U.S.C. Section 1833(b)) applies that is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney, in each case, solely for the purpose of reporting or investigating a suspected violation of law or (B) in a complaint or other document filed in a lawsuit or proceeding, if such filings are made under seal.

8.    Inventions and Patents. You agree that all inventions, innovations, improvements, technical information, trade secrets, systems, software developments, ideas, results, methods, designs, artwork, analyses, drawings, reports, copyrights, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable) which relate to the Company’s or any of the Company Affiliates’ businesses, research and development or existing products (or products under development) or services and which are conceived, developed or made by you (whether or not during usual business hours and whether or not alone or in conjunction with any other person) during your employment with the Company, together with all intellectual property rights therein, including without limitation any patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing (collectively referred to herein as “Work Product”), is the exclusive property of the Company and/or the Company Affiliates. For the avoidance of doubt and without limiting the foregoing, (x) the Company or any of the Company Affiliates shall be the sole owner of all right, title and interest in such Work Product, including without limitation all intellectual property rights relating to such Work Product, without you retaining any license or other residual right whatsoever, and (y) any rights to any new or an existing Work Product are automatically conveyed, assigned and transferred to the Company pursuant to this letter agreement. You hereby waive and renounce to all moral rights related, directly or indirectly, to any such existing or new Work Product. You will take reasonable steps to promptly disclose such Work Product to the Board and perform all actions reasonably requested by the Board (whether during or after the Employment Period) to establish and confirm such ownership (including without limitation the execution and delivery of assignments, consents, powers of attorney and other instruments) and to provide reasonable assistance to the Company and the Company Affiliates in connection with the prosecution of any applications for patents, trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of interferences relating to any Work Product.

9. Non-Competition; Non-Solicitation.

(a)    You acknowledge that, in the course of your employment with the Company, you will become familiar with the Company’s and the Company Affiliates’ trade secrets and other Confidential Information as well as the Company’s customer information and goodwill, and that your services will be of special, unique, and extraordinary value to the Company and the Company Affiliates. Therefore, you agree that, during the Employment Period and any other period during which you are employed by the Company or any of its Affiliates, whether pursuant to this letter agreement or otherwise, plus an additional twelve (12) months after your separation (the “Restriction Period”) (regardless of the reason for your separation from the Company and whether caused by you or the Company), you will not (x) in the United States or any other country where, as of the time at issue, the Company or any of the Company Affiliates conducts business or (y) anywhere else that, during the then prior two-year period, the Company or any of the Company Affiliates has spent time and resources in connection with expanding its business, directly or indirectly, either on your own behalf or on behalf of any other person, firm or entity: engage in, or own, manage, operate, work as an employee for, consult with, provide services or financing to, or join, control or participate in the ownership, management, operation or control of, any business (whether in corporate, proprietorship or partnership form or otherwise) that is engaged in the business of (i) electric vehicle charging, broadband or electrical contracting

infrastructure or (ii) such other business in which the Company or any Company Affiliates with which you worked was engaged at any time during the then immediately prior two years.

(b)    Nothing in Section 9(a) will prohibit you from being a passive owner of not more than 2% of the outstanding stock of a publicly traded corporation, so long as you have no active participation in the business of such corporation.

(c) During the Restriction Period, you also will not:

(i)    induce or attempt to induce any customer, supplier or other business relation of the Company or any of the Company Affiliates to cease doing business with the Company or any of the Company Affiliates, or in any way interfere with the relationship between any such customer, supplier or business relation, on the one hand, and the Company or any of the Company Affiliates, on the other hand;

(ii)    engage, employ, solicit or contact with a view to the engagement or employment of, any employee, officer or manager of, or full-time consultant to, the Company or any of the Company Affiliates with which you worked or any person who has been an employee, officer or manager of, or consultant to, the Company or any of the Company Affiliates with which you worked, if he or she has been in such a role at any time within the then immediately prior three months; or

(iii)    assist any individual or entity to engage in the conduct referenced in clauses (i) and (ii) immediately above.

10. Enforcement.

(a)    Because the employment relationship between you and the Company is unique and because you have access to Confidential Information, Work Product and Company goodwill, you agree that money damages would be an inadequate remedy for any breach of Section 7, 8 or 9. Therefore, in the event of a breach or threatened breach of Section 7, 8 or 9, the Company may, in addition to its other rights and remedies, apply to any court of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce, or prevent any violations of, such provisions (without posting a bond or other security).

(b)    Sections 5, 6, 7, 8 and 9 will expressly survive termination of the Employment Period and this letter agreement. The existence of any claim or cause of action by you against the Company and/or any of the Company Affiliates shall not constitute a defense to the enforcement by the Company of the covenants contained in Section 6(b), 7, 8 or 9, but such claim or cause of action shall be litigated separately.

11.    Notices. All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice, request, demand, claim or other communication hereunder will be deemed duly given (a) upon delivery, if delivered personally to the recipient, against written receipt therefor, or (b) upon the first Business Day after the date sent, if sent priority next Business Day delivery to the intended recipient by a reputable express courier service (charges prepaid) and addressed to the intended recipient as set forth below:

If to the Company, to:

Attention: Jamie Yung and/or James Biehl Charge Enterprises, Inc.

125 Park Ave, 25^th Floor New York, NY 10017

If to you, to the address appearing in the Company’s records.

Any party hereto may send any notice, request, demand, claim or other communication hereunder to the intended recipient at the address set forth above using any other means, but no such notice, request, demand, claim or other communication will be deemed to have been duly given unless and until it actually is received and acknowledged by the intended recipient. Any party hereto may change the address (or add new parties and their addresses) to which notices, requests, demands, claims, and other communications hereunder are to be delivered by giving the other parties hereto notice in the manner set forth in this Section 11.

12.    Representations and Warranties. You hereby represent and warrant to the Company that (a) the execution, delivery and performance of this letter agreement by you does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which you are a party or any judgment, order or decree to which you are subject, (b) you are not a party to or bound by any employment agreement, consulting agreement, non-compete agreement, confidentiality agreement or similar agreement with any other person or entity that is inconsistent with the provisions of this letter agreement or that would limit you in your duties hereunder, (c) upon the execution and delivery of this letter agreement by the Company and you, this letter agreement will be a valid and binding obligation of you and (d) you are able to perform the services described in this letter agreement. The Company hereby represents and warrants to you that (i) the execution, delivery and performance of this letter agreement does not and will not conflict with, breach, violate or cause a default under any agreement, contract or instrument to which it is a party or any judgment, order or decree to which it is subject and (ii) upon the execution and delivery of this letter agreement by the Company and you, such agreements will be valid and binding obligations of the Company.

13.    Lock-Up Agreement. In connection with a registration with the United States Securities and Exchange Commission under the Securities Act of the public sale of shares of Common Stock, you shall not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time prior to the effective date of such registration and continuing through and following the effective date of such registration (not to exceed 90 days) as the Company or the underwriters, as the case may be, shall specify. You agree that the Company may instruct its transfer agent to place stop-transfer notations in its records to enforce the provisions of this Section. You shall execute a form of agreement reflecting the foregoing restrictions as requested by the underwriters managing such offering.

14. General Provisions.

(a)    Severability. It is the desire and intent of the parties hereto that the provisions of this letter agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this letter agreement will be adjudicated by a court of competent jurisdiction to be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction, will be ineffective, without invalidating the remaining provisions of this letter agreement or affecting the validity or enforceability of this letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction, it will, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this letter agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

(b)    Complete Agreement. This letter agreement and any schedules or exhibits expressly constitute the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes and pre-empts any prior understandings, agreements or representations by or among the parties, written or oral, which may have related to the subject matter hereof in any way.

(c)    Successors and Assigns. The Company may freely assign this letter agreement, including to any Affiliate or in connection with any merger or sale of equity or assets, and upon such assignment the references herein to the Company shall be deemed to include the assignee. You may not assign your rights and obligations under this letter agreement without the prior written consent of the Company. Except as otherwise provided herein, this letter agreement will be binding upon and inure to the benefit of you and the Company and our respective successors, permitted assigns, personal representatives, heirs and estates, as the case may be.

(d)    Governing Law. This letter agreement will be governed by and construed in accordance with the domestic laws of Florida, without giving effect to the choice of law provisions thereof. The parties agree that any dispute under this letter agreement may be brought in the federal and state courts sitting in Florida and by this letter agreement the parties expressly consent to such courts’ jurisdiction.

(e)    Amendment and Waiver. The provisions of this letter agreement may be amended and waived only with the prior written consent of the Company (with the approval of the Board) and you, and no course of conduct or failure or delay in enforcing the provisions of this letter agreement will affect the validity, binding effect or enforceability of this letter agreement or any provision hereof.

(f)    Headings. The section headings contained in this letter agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this letter agreement.

(g)    Counterparts. This letter agreement may be executed in counterparts, each of which will be deemed an original and all of which together will constitute one and the same

instrument. The signatures of any of the persons executing this letter agreement may be transmitted via facsimile or other electronic means and shall be sufficient evidence of the execution of this letter agreement.

(h) 409A Provision.

(i)    For purposes of this letter agreement the term “termination of employment” and similar terms relating to your termination of employment mean a “separation from service” as that term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder (“Section 409A”). The Company and you intend that this letter agreement comply in form and operation with the requirements of Section 409A, and all provisions of this letter agreement shall be construed and interpreted in a manner consistent with the requirements for avoiding taxes or penalties under Section 409A. To the extent permitted by applicable Department of Treasury/Internal Revenue Service guidance, or law or regulation, the Company and you will take reasonable actions to reform this letter agreement or any actions taken pursuant to their operation of this letter agreement in order to comply with Section 409A.

(ii)    For purposes of Section 409A, each of the payments that may be made hereunder is designated as a separate payment. To the extent that the Company determines that any payment or benefit pursuant to this letter agreement constitutes deferred compensation (within the meaning of Section 409A), such payment or benefit shall be made at such times and in such forms as the Company determines are required to comply with Section 409A and the Treasury Regulations and any applicable guidance thereunder. If, as of the date of your termination of employment, you are a “specified employee” within the meaning of Section 409A, then to the extent necessary to comply with Section 409A and to avoid the imposition of taxes and/or penalties under Section 409A, payment to you of any amount or benefit under this letter agreement or any other Company plan, program or agreement that constitutes “nonqualified deferred compensation” under Section 409A and which under the terms of this letter agreement or any other Company plan, program or arrangement would otherwise be payable as a result of and within six (6) months following such termination shall be delayed, as provided under current regulatory requirements under Section 409A, until the earlier of (i) five (5) calendar days after the Company receives notification of your death or (ii) the first Business Day of the seventh month following the date of your termination of employment. All tax gross-up payments provided under this letter agreement or any other agreement with you shall be made or provided by the end of your taxable year following your taxable year in which you remit the related taxes.

(iii)    Except as otherwise permitted by Section 409A, the benefits and reimbursements provided to you under this letter agreement and any Company plan or policy during any calendar year shall not affect the benefits and reimbursements to be provided to you under the relevant section of this letter agreement or any Company plan or policy in any other calendar year, and the right to such benefits

and reimbursements cannot be liquidated or exchanged for any other benefit and shall be provided in accordance with Treas. Reg. Section 1.409A-3(i)(1)(iv) or any successor thereto. Further, in the case of reimbursement payments, reimbursement payments shall be made to you as soon as practicable following the date that the applicable expense is incurred and proper documentation is provided to the Company, but in no event later than the last day of the calendar year following the calendar year in which the underlying expense is incurred.

(i)“    Business Day” Defined. For purposes of this letter agreement, the capitalized term “Business Day” shall mean any calendar day other than a Saturday, Sunday or other day on which banks in New York, New York are authorized or required to be closed.

(j)    Clawback Acknowledgement. This letter agreement and the compensation payable hereunder, including, for the avoidance of doubt, the retention bonus provided for in Section 3(g), as applicable, shall be subject to any applicable clawback or recoupment policies, stock ownership policies, share trading policies, and other codes of conduct and written policies that are in place as of the Effective Date and as may be revised or implemented by the Company from time to time as applicable to officers of the Company, in each case after consultation with you. For the avoidance of doubt, notwithstanding any other provision herein, any incentive compensation awarded to you that is subject to recovery under any law, government regulation, stock exchange listing requirement or recoupment policy adopted by the Company will be subject to such deductions and clawback as may be required to be made pursuant to such law, government regulation, stock exchange listing requirement or recoupment policy adopted by the Company (including a policy adopted by the Company in response to any such law, government regulation or stock exchange listing requirement).

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If this letter agreement correctly expresses our mutual understanding, please sign and date a copy of this letter agreement and return it to the Company.

Very truly yours, Charge Enterprises, Inc.

By:                   Name: Leah Schweller

Title: Chief Financial Officer

The terms of this letter agreement are accepted and agreed to as of the date set forth below by:

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Craig Denson

11-06-2023

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Date

EXHIBIT A

Form of Release RELEASE

This Release (“Release”) is delivered by Craig Denson on this          day of          , 20 .

DEFINITIONS

A.    As used herein, unless otherwise specified, the term “Employer” shall mean Charge Enterprises, Inc., and the term “Employer Group” shall mean Employer; all of its affiliates, successors, predecessors, assigns, parents, subsidiaries, and divisions (whether incorporated or unincorporated); and all of its and their past and present owners, directors, officers, trustees, shareholders, managers, employees and agents (in their individual and representative capacities).

B.    As used herein, unless otherwise specified, the term “Employee” shall mean Craig Denson, and the term “Employee Representatives” shall mean all of Employee’s heirs, family members, executors, accountants, administrators, attorneys, agents, assigns, successors and representatives.

RECITALS

WHEREAS, Employee’s employment ended on          , 20 ; and

WHEREAS, it is a condition to Employee’s receipt of certain post-employment benefits (“Conditional Benefits”) under Sections 5 of the letter agreement, dated [         ], 2023 (the “Employment Agreement”), between Employee and Employer that Employee execute and not revoke this Release.

NOW THEREFORE, in consideration of the promises, representations and mutual covenants contained in this Release, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, it is agreed as follows:

1.    Consideration. Employee acknowledges that the Conditional Benefits are in excess of any earned wages or benefits due and owing to Employee, and would not be paid or provided unless Employee executed this Release. Employee acknowledges and agrees that the Conditional Benefits are adequate and independent consideration for Employee executing this Release and releasing any and all claims against Employer.

2.    Release of All Claims. In consideration of the above, and the other promises set forth in this Release, Employee, on behalf of himself and all of the Employee Representatives, fully and forever waives, releases, acquits and discharges Employer and the other members of the Employer Group from and for all manner of claims, actions, suits, charges, demands, grievances and/or causes of action, in law or in equity, existing by reason of and/or based upon any fact or set of facts, known or unknown, existing from the beginning of time through the date of Employee’s

execution of this Release relating to and/or arising out of the Employment Agreement, Employee’s employment with Employer and/or the cessation of Employee’s employment with Employer (collectively, the “Released Claims”), including, but not limited to, all claims, actions, suits, charges, demands, grievances and/or causes of action (x) for wages, compensation, liquidated damages, commissions, bonuses, benefits, sums of money, damages of every type, costs, attorney fees, judgments, and executions, (y) alleging wrongful discharge, breach of contract, breach of implied contract, breach of the covenant of good faith and fair dealing, tortious interference with contract or business relationships, assault, battery, invasion of privacy, misappropriation of trade secrets, promissory estoppel, unjust enrichment, loss of consortium, violation of the penal statutes, negligent or intentional infliction of emotional distress, negligence, defamation, retaliation and/or discrimination and/or harassment on account of age, sex, sexual orientation, creed, religion, race, color, national origin, sensory disability, mental disability, physical disability, veteran or military status, marital status, or any other classification recognized under all applicable discrimination laws, or (z) brought under common law or civil rights or other statutes, including Title VII of the Civil Rights Act of 1964 (“Title VII”), the Age Discrimination in Employment Act (“ADEA”) (as amended by the Older Workers Benefits Protection Act (“OWBPA”)), the Family and Medical Leave Act (“FMLA”), the Employee Retirement Income Security Act (“ERISA”), the Rehabilitation Act of 1973, the Americans with Disabilities Act (“ADA”), the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Workers Adjustment Retraining Notification Act (“WARN”), the Equal Pay Act (“EPA”), the Uniformed Services Employment and Reemployment Rights Act (“USERRA”), the National Labor Relations Act (“NLRA”), the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law,¹ and any and all other federal, state, local statutes, ordinances, and laws, and every type of relief (legal, equitable and otherwise), available to Employee. Employee covenants and agrees that he will not pursue or allege any claim, matter or cause of action in violation of, and/or released under, this Release. Notwithstanding the foregoing or anything contained below, nothing in this Release shall be construed as releasing Employer from, and the Released Claims shall not include: (a) any obligation to pay those amounts due to Employee under Section 5(a) or 5(b) of the Employment Agreement, subject to the terms and conditions thereof; (b) Employee’s rights to enforce the terms of the Employment Agreement that survive the termination of the Employment Period (as defined in the Employment Agreement) or Employment Agreement; (c) Employee’s rights described in Section 5(e) of the Employment Agreement; (d) Employee’s non-forfeitable rights to accrued benefits (within the meaning of Sections 203 and 204 of ERISA), (e) Employee’s right to indemnification or exculpation under the Employment Agreement, Employer’s policies or law with respect to Employee’s service as a director or officer of Employer (including without limitation any such rights under Employer’s Certificate of Incorporation, By-laws and Directors and Officers Liability Insurance coverage); (f) any claims that by law cannot be waived by private agreement without judicial or governmental supervision; or (g) Employee’s right to file a charge with or participate in any investigation or proceeding conducted by the U.S. Equal Employment Opportunity Commission (“EEOC”) or other government agency; provided that even though Employee can file a charge or participate in an investigation or proceeding conducted by the EEOC or other government agency, by executing this Release, Employee is waiving his ability to obtain relief of any kind from the Employer Group to the extent permitted by law.

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¹ [Applicable state laws to be added based on Executive’s work location and residence at time of separation.]

3.    Covenant Not to Sue. Employee represents that he has not filed any action, charge, suit, or claim against Employer or any other member of the Employer Group with any federal, state or local agency or court relating to any Released Claim. Employee further agrees that should any claims, charges, complaints, suits or other actions be filed hereafter on his behalf by any federal, state or local agency or by any other person or entity with respect to a Released Claim, he will immediately withdraw with prejudice, or cause to be withdrawn with prejudice, and/or dismiss with prejudice, or cause to be dismissed with prejudice, any such claims, charges, complaints, suits or other actions filed against Employer. Employee further agrees that, to the fullest extent permitted by law, Employee shall receive no relief of any type (monetary, equitable, or otherwise) from Employer with respect to, relating to and/or on account of any such claims, matters or actions. Employee agrees to opt-out of, and not opt-in to, any class action or collective action filed against Employer to the extent related to a Released Claim.

4.    Confidentiality. To the fullest extent permitted by law, Employee agrees to keep confidential all facts, opinions, and information which relate in any way to Employee’s employment and/or cessation of employment with Employer, as well as the terms of this Release; provided however, Employee may discuss the terms of this Release with his spouse, legal representative, and/or tax preparer, each of whom must also agree to maintain confidentiality and comply with this Section 4. Notwithstanding anything herein to the contrary, Section 7(e) of the Employment Agreement will apply to this Release and nothing contained herein shall prevent Employee from making truthful statements to any government authority or agency.

5.    Return of Employer’s Property. Employee represents that he has returned to Employer any and all property, records, papers, documents and writings, in whatever form, of Employer in Employee’s possession and/or control, and that he has not retained any copies thereof, in whatever form.

6.    Non-Disparagement. Employee agrees not to disparage the Employer, its affiliates or the Employer’s or its affiliates’ officers, directors, employees, shareholders, parents, subsidiaries, affiliates, and agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation, and the Employer agrees to direct its officers and directors not to disparage Employee in any manner likely to be harmful to Employee in any manner including Employee’s business reputation or personal reputation; provided that Employee and the Employer may respond accurately and fully to any question, inquiry, or request for information when required by legal process or in connection with a government investigation. In addition, nothing in this provision or this Agreement is intended to prohibit or restrain Employee in any manner from making disclosures that are protected under the whistleblower provisions of federal or law or regulation.

7. Cooperation.

(a)    To the fullest extent permitted by law, Employee will not cooperate with, or assist in, any claim, charge, lawsuit, or arbitration against the Employer Group with respect to a Released Claim, unless required to do so by a lawfully issued subpoena, by court order or as expressly provided by regulation or statute. In the event Employee is served with a subpoena or is required by court order or otherwise to testify in any type of proceeding involving Employer and

related to a Released Claim, unless prohibited by applicable law from doing so, Employee shall immediately advise Employer in writing of same.

8.    Employee agrees to cooperate with the Employer Group in any internal investigation, administrative, regulatory, or judicial proceeding or any dispute with a third party. Employee’s cooperation may include being available to Employer upon reasonable notice for interviews and factual investigations, appearing at Employer’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to Employer pertinent information, and turning over to Employer all relevant documents which are or may come into Employee’s possession. Employee understands that in the event Employer asks for Employee’s cooperation in accordance with this provision, Employer will reimburse his for reasonable travel expenses (including lodging and meals) upon submission of receipts acceptable to Employer.

9.    ADEA Notice and Acknowledgement. Employee acknowledges that he has carefully read this Release and fully understands its contents. Prior to signing this Release, Employee has been advised in writing hereby and has had an opportunity to consult with his attorney of choice concerning the terms and conditions of this Release with regard to any claim or right Employee may have under the ADEA or otherwise. Employee has been offered at least [21/45] days to review and consider this Release. Employee may voluntarily and knowingly waive this [21/45]-day period, or any part thereof, if he signs this Release prior to the expiration of [21/45] days. After signing this Release, Employee shall have seven days from the signing date to revoke this Release. This Release shall not be effective (including for purposes under the Employment Agreement) until after the seven-day revocation period has expired. Any revocation must be made in writing and delivered to the Chief Legal Officer of Employer. Until all applicable periods set forth in this Section 7 have expired, Employer shall not be required to make any payment to Employee which payment is, under Sections 5(a) or 5(b) of the Employment Agreement, contingent upon the signing and delivery to the Company of this Release. By signing this Release, Employee agrees and understands that he is waiving and releasing any and all rights he may have to pursue the Released Claims against Employer, from the beginning of time up to the effective date of this Release, including, without limitation, all ADEA claims.

10.    Governing Law.² law shall govern this Release, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of .

11.    Successors and Assigns. This Release shall inure to the benefit of the successors and assigns of Employer.

12.    Severability. If any portion of this Release is ruled unenforceable, all remaining portions of this Release shall remain valid.

13.    No Reliance; No Waiver. Employee represents that he is not relying on any representation, statement, or promise of Employer or any other party in giving this Release. This

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² [Governing law to be added based on Executive’s work location and residence at time of separation.]

Release may not be amended, modified, waived, or terminated except in a writing signed by Employee and an authorized representative of Employer.

14.    Headings. The paragraph and section headings in this Release are inserted merely for the convenience of reference only and shall not be used to construe, affect or modify the terms of any paragraph or provision of this Release.

EMPLOYEE WITHOUT ANY DURESS OR COERCION FREELY, KNOWINGLY AND VOLUNTARILY ENTERS INTO, AND GIVES THIS RELEASE. EMPLOYEE UNDERSTANDS AND AGREES WITH ALL OF THE PROVISIONS AND THE TERMS STATED IN THIS RELEASE AND HAS BEEN AFFORDED SUFFICIENT AND REASONABLE TIME TO CONSIDER WHETHER TO ENTER INTO THIS RELEASE. EMPLOYER ADVISES EMPLOYEE TO CONSULT WITH AN ATTORNEY OF EMPLOYEE’S CHOOSING PRIOR TO EXECUTING THIS RELEASE WHICH CONTAINS A RELEASE AND WAIVER.

Dated:          

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EX-31.1

EXHIBIT 31.1

CERTIFICATION BY THE CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Craig Denson, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Charge Enterprises, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2023	/s/ Craig Denson
	Name: Craig Denson
	Title: Interim Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION BY THE CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Leah Schweller, certify that:

1.	I have reviewed this Quarterly Report on Form 10-Q of Charge Enterprises, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 8, 2023	/s/ Leah Schweller
	Name: Leah Schweller
	Title: Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER 

PURSUANT TO 18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Craig Denson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Charge Enterprises, Inc. for the quarterly period ended September 30, 2023 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such Report fairly presents, in all material respects, the financial condition and results of operations of Charge Enterprises, Inc.

Date: November 8, 2023	/s/ Craig Denson
	Name: Craig Denson
	Title: Interim Chief Executive Officer
	(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Charge Enterprises, Inc. and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER 

PURSUANT TO 18 U.S.C. SECTION 1350, 

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Leah Schweller, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Charge Enterprises, Inc. for the quarterly period ended September 30, 2023 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in such Report fairly presents, in all material respects, the financial condition and results of operations of Charge Enterprises, Inc.

Date: November 8, 2023	/s/ Leah Schweller
	Name: Leah Schweller
	Title: Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Charge Enterprises, Inc. and will be retained and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Oct. 31, 2023
Document Information [Line Items]
Entity Central Index Key	0001277250
Entity Registrant Name	Charge Enterprises, Inc.
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	333-253073
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-0471969
Entity Address, Address Line One	125 Park Avenue, 25th Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10017
City Area Code	212
Local Phone Number	921-2100
Title of 12(b) Security	Common Stock, par value $.0001 per share
Trading Symbol	CRGE
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		215,039,868

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Current assets
Cash and cash equivalents	$ 51,359	$ 26,837
Restricted cash	886	886
Accounts receivable net of allowances of $68 in 2023 and $322 in 2022	55,768	72,405
Inventory	317	111
Deposits, prepaids and other current assets	3,430	3,187
Investments in marketable securities	5,868	6,757
Investments in non-marketable securities	279	236
Contract assets	8,128	6,090
Total current assets	126,035	116,509
Property, plant and equipment, net	485	732
Finance lease right-of-use assets	888	341
Operating lease right-of-use assets	3,123	4,028
Non-current assets	248	240
Goodwill	25,906	12,672
Intangible assets, net	30,832	33,932
Total Assets	187,517	168,454
Current liabilities
Accounts payable	73,105	61,644
Accrued liabilities	7,922	11,121
Contract liabilities	25,201	13,741
Derivative liability	2	6,521
Finance lease liabilities	242	112
Operating lease liabilities	1,183	1,579
Current portion of long-term debt	27,126	29,180
Total current liabilities	134,781	123,898
Non-current liabilities
Finance lease liabilities, non-current	530	146
Operating lease liabilities, non-current	1,808	2,199
Contingent consideration liability	5,758	0
Net deferred tax liability	1,072	1,410
Total Liabilities	143,949	127,653
Series C preferred stock (6,226,370 shares issued and outstanding at September 30, 2023, and December 31, 2022)	19,458	16,572
Commitments, contingencies and concentration risk
Stockholders' Equity
Common stock, $0.0001 par value; 750,000,000 shares authorized, 215,039,868 and 206,844,580 issued and outstanding at September 30, 2023 and December 31, 2022, respectively	21	20
Additional paid in capital	208,564	179,723
Accumulated deficit	(184,475)	(155,514)
Total Stockholders' Equity	24,110	24,229
Total Liabilities and Stockholders' Equity	187,517	168,454
Series C Preferred Stock [Member]
Non-current liabilities
Series C preferred stock (6,226,370 shares issued and outstanding at September 30, 2023, and December 31, 2022)	19,458	16,572
Series D Preferred Stock [Member]
Stockholders' Equity
Preferred stock	0	0
Series E Preferred Stock [Member]
Stockholders' Equity
Preferred stock	$ 0	$ 0

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Allowance for doubtful accounts	$ 68	$ 322
Common stock, Par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, Shares authorized (in shares)	750,000,000	750,000,000
Common stock, Shares issued (in shares)	215,039,868	206,844,580
Common stock, Shares outstanding (in shares)	215,039,868	206,844,580
Series C Preferred Stock [Member]
Temporary Equity, Shares Issued (in shares)	6,226,370	6,226,370
Temporary Equity, Shares Outstanding (in shares)	6,226,370	6,226,370
Series D Preferred Stock [Member]
Preferred stock, Shares issued (in shares)	1,177,023	1,177,023
Preferred stock, Shares outstanding (in shares)	1,177,023	1,177,023
Series E Preferred Stock [Member]
Preferred stock, Shares issued (in shares)	3,200,000
Preferred stock, Shares outstanding (in shares)		0

XML

Consolidated Statement of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 132,277	$ 185,857	$ 473,412	$ 529,876
Cost of sales	123,255		450,353
Gross profit	9,022		23,059
Operating expenses
General and administrative	4,315		14,854
Salaries and related benefits	8,890		27,173
Professional fees	1,006		1,918
Depreciation and amortization expense	1,172	433	3,574	1,745
Total operating expenses	15,383		47,519
(Loss) from operations	(6,361)		(24,460)
Other income (expenses):
Income (loss) from investments, net	675		1,637	(1,343)
Change in fair value of derivative liabilities	57		1,713	28,669
Interest expense	(1,489)		(4,515)
Loss on impairment	(56)		(114)	0
Other income (expense), net	848		1,876
Foreign exchange gain (loss)	116		(53)
Total other income (expenses), net	151		544
Income (loss) before income taxes	(6,210)	16,173	(23,916)	(12,341)
Income tax (expense) benefit	(741)	8	(1,093)	1,336
Net income (loss)	(6,951)	14,407	(25,009)	(11,005)
Less: Deemed dividend	(2,885)		(2,885)
Less: Preferred dividends	(362)		(1,086)
Net income (loss) available to common stockholders	$ (10,198)		$ (28,980)
Basic income (loss) per share available to common stockholders (in dollars per share)	$ (0.05)		$ (0.14)
Diluted income (loss) per share available to common stockholders (in dollars per share)	$ (0.05)		$ (0.14)
Weighted average number of shares outstanding, basic (in shares)	214,273		211,423
Weighted average number of shares outstanding, diluted (in shares)	214,273		211,423
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Revenues		185,857		529,876
Cost of sales		179,760		512,143
Gross profit		6,097		17,733
Operating expenses
General and administrative		5,141		17,200
Salaries and related benefits		7,850		23,597
Professional fees		666		2,578
Depreciation and amortization expense		433		1,745
Total operating expenses		14,090		45,120
(Loss) from operations		(7,993)		(27,387)
Other income (expenses):
Income (loss) from investments, net		(200)		(1,343)
Change in fair value of derivative liabilities		28,669		28,669
Interest expense		(1,015)		(9,939)
Loss on impairment		0		0
Other income (expense), net		(3,289)		(2,255)
Foreign exchange gain (loss)		1		(86)
Total other income (expenses), net		24,166		15,046
Income (loss) before income taxes		16,173		(12,341)
Income tax (expense) benefit		8		1,336
Net income (loss)		16,181		(11,005)
Less: Deemed dividend		0		(36,697)
Less: Preferred dividends		(302)		(922)
Net income (loss) available to common stockholders		$ 15,879		$ (48,624)
Basic income (loss) per share available to common stockholders (in dollars per share)		$ 0.07		$ (0.25)
Diluted income (loss) per share available to common stockholders (in dollars per share)		$ 0.06		$ (0.25)
Weighted average number of shares outstanding, basic (in shares)		206,225		196,126
Weighted average number of shares outstanding, diluted (in shares)		231,388		196,126

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net income (loss)	$ (6,951)	$ 14,407	$ (25,009)	$ (11,005)
Other comprehensive income (loss), net of tax
Components of comprehensive income (loss)	0		0
Other comprehensive income (loss), net of tax	0		0
Comprehensive income (loss)	$ (6,951)		$ (25,009)
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Net income (loss)		16,181		(11,005)
Other comprehensive income (loss), net of tax
Components of comprehensive income (loss)		0		0
Other comprehensive income (loss), net of tax		0		0
Comprehensive income (loss)		$ 16,181		$ (11,005)

XML

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Cumulative Effect, Period of Adoption, Adjustment [Member] Preferred Stock [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Common Stock To Be Issued [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Additional Paid-in Capital [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] AOCI Attributable to Parent [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member] Retained Earnings [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Series C Preferred Stock [Member] Preferred Stock [Member]	Series C Preferred Stock [Member] Common Stock [Member]	Series C Preferred Stock [Member] Common Stock To Be Issued [Member]	Series C Preferred Stock [Member] Additional Paid-in Capital [Member]	Series C Preferred Stock [Member] AOCI Attributable to Parent [Member]	Series C Preferred Stock [Member] Retained Earnings [Member]	Series C Preferred Stock [Member]	Series D Preferred Stock [Member] Preferred Stock [Member]	Series D Preferred Stock [Member] Common Stock [Member]	Series D Preferred Stock [Member] Common Stock To Be Issued [Member]	Series D Preferred Stock [Member] Additional Paid-in Capital [Member]	Series D Preferred Stock [Member] AOCI Attributable to Parent [Member]	Series D Preferred Stock [Member] Retained Earnings [Member]	Series D Preferred Stock [Member]	Conversion of Debt into Common Stock [Member] Preferred Stock [Member]	Conversion of Debt into Common Stock [Member] Common Stock [Member]	Conversion of Debt into Common Stock [Member] Common Stock To Be Issued [Member]	Conversion of Debt into Common Stock [Member] Additional Paid-in Capital [Member]	Conversion of Debt into Common Stock [Member] AOCI Attributable to Parent [Member]	Conversion of Debt into Common Stock [Member] Retained Earnings [Member]	Conversion of Debt into Common Stock [Member]	Private Placement [Member] Preferred Stock [Member]	Private Placement [Member] Common Stock [Member]	Private Placement [Member] Common Stock To Be Issued [Member]	Private Placement [Member] Additional Paid-in Capital [Member]	Private Placement [Member] AOCI Attributable to Parent [Member]	Private Placement [Member] Retained Earnings [Member]	Private Placement [Member]	Restricted Stock Units (RSUs) [Member] Preferred Stock [Member]	Restricted Stock Units (RSUs) [Member] Common Stock [Member]	Restricted Stock Units (RSUs) [Member] Common Stock To Be Issued [Member]	Restricted Stock Units (RSUs) [Member] Additional Paid-in Capital [Member]	Restricted Stock Units (RSUs) [Member] AOCI Attributable to Parent [Member]	Restricted Stock Units (RSUs) [Member] Retained Earnings [Member]	Restricted Stock Units (RSUs) [Member]	Conversion of Series B Preferred Stock into Common Stock [Member] Preferred Stock [Member]	Conversion of Series B Preferred Stock into Common Stock [Member] Common Stock [Member]	Conversion of Series B Preferred Stock into Common Stock [Member] Common Stock To Be Issued [Member]	Conversion of Series B Preferred Stock into Common Stock [Member] Additional Paid-in Capital [Member]	Conversion of Series B Preferred Stock into Common Stock [Member] AOCI Attributable to Parent [Member]	Conversion of Series B Preferred Stock into Common Stock [Member] Retained Earnings [Member]	Conversion of Series B Preferred Stock into Common Stock [Member]	Preferred Stock [Member]	Common Stock [Member]	Common Stock To Be Issued [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2021																																																		2,370,370	184,266,934	6,587,897
Balance at Dec. 31, 2021	$ 0	$ 0	$ 0	$ (3,320)	$ 0	$ 3,115	$ (205)																																											$ 0	$ 18	$ 1	$ 117,727	$ (32)	$ (103,366)	$ 14,348
Stock-based compensation expense																																																		0	0	0	10,744	0	0	10,744
Less: Preferred dividends																																																		0	0	0	0	0	(267)	(267)
Stock Issued (in shares)								3,856,000	0	0
Stock Issued								$ 0	$ 0	$ 0	$ 12,050	$ 0	$ 0	$ 12,050
Beneficial conversion feature arising from preferred stock																																																		$ 0	$ 0	$ 0	2,651	0	0	2,651
Less: Deemed dividend								$ 0	$ 0	$ 0	0	0	(3,856)	(3,856)
Common stock issued for acquisition (in shares)																																																		0	5,201,863	0
Common stock issued for acquisition																																																		$ 0	$ 1	$ 0	17,530	0	0	17,531
Conversion of Stock (in shares)																						0	319,950	0
Conversion of Stock																						$ 0	$ 0	$ 0	$ 80	$ 0	$ 0	$ 80
Net income (loss)																																																		$ 0	$ 0	$ 0	0	0	(13,141)	(13,141)
Balance (in shares) at Mar. 31, 2022																																																		6,226,370	189,788,747	6,587,897
Balance at Mar. 31, 2022				(2,538)		2,482	(56)																																											$ 0	$ 19	$ 1	157,462	(32)	(117,515)	39,935
Balance (in shares) at Dec. 31, 2021																																																		2,370,370	184,266,934	6,587,897
Balance at Dec. 31, 2021	0	0	0	(3,320)	0	3,115	(205)																																											$ 0	$ 18	$ 1	117,727	(32)	(103,366)	14,348
Net income (loss)																																																								(11,005)
Balance (in shares) at Sep. 30, 2022																																																		1,177,023	206,482,414	0
Balance at Sep. 30, 2022																																																		$ 0	$ 20	$ 0	173,543	0	(145,792)	27,771
Balance (in shares) at Mar. 31, 2022																																																		6,226,370	189,788,747	6,587,897
Balance at Mar. 31, 2022				(2,538)		2,482	(56)																																											$ 0	$ 19	$ 1	157,462	(32)	(117,515)	39,935
Stock-based compensation expense																																																		0	0	0	9,343	0	0	9,343
Less: Preferred dividends																																																		0	0	0	0	0	(353)	(353)
Stock Issued (in shares)															1,177,023	0	0												0	1,428,575	0
Stock Issued															$ 0	$ 0	$ 0	$ 12,499	$ 0	$ 0	$ 12,499								$ 0	$ 0	$ 0	$ 4,696	$ 0	$ 0	$ 4,696
Less: Deemed dividend																																																		0	0	0	(7,601)	0	(32,841)	(40,442)
Conversion of Stock (in shares)																																											0	2,155,594	0
Conversion of Stock																																											$ 0	$ 0	$ 0	$ 6,165	$ 0	$ 0	$ 6,165
Net income (loss)																																																		0	0	0	0	0	(19,642)	(19,642)
Issuance of warrants for private placement																																																		$ 0	$ 0	$ 0	5,304	0	0	5,304
Issuance of shares committed in prior period (in shares)																																																		0	1,862,146	(1,862,146)
Settlement of holdback shares for acquisition (in shares)																																																		0	4,725,748	(4,725,748)
Settlement of holdback shares for acquisition																																																		$ 0	$ 0	$ (1)	0	0	0	(1)
Exercise of warrants (in shares)																																																		0	5,973,515	0
Exercise of warrants																																																		$ 0	$ 1	$ 0	1,072	0	0	1,073
Exercise of stock options (in shares)																																																		0	10,000	0
Exercise of stock options																																																		$ 0	$ 0	$ 0	20	0	0	20
Vesting of restricted stock units (in shares)																																				0	138,327	0
Classification of Preferred C to Mezzanine Equity (in shares)								(6,226,370)	0	0
Classification of Preferred C to Mezzanine Equity								$ 0	$ 0	$ 0	$ (18,940)	$ 0	$ 6,256	$ (12,684)
Other (in shares)																																																		0	0	(3)
Balance (in shares) at Jun. 30, 2022																																																		1,177,023	206,082,652	0
Balance at Jun. 30, 2022	$ 0	$ 0	$ 0	$ (1,981)	$ 0	$ 1,806	$ (175)																																											$ 0	$ 20	$ 0	167,482	(32)	(161,613)	5,857
Stock-based compensation expense																																																		0	0	0	7,825	0	0	7,825
Net income (loss)																																																		$ 0	$ 0	$ 0	0	32	14,375	14,407
Exercise of warrants (in shares)																																																		0	137,803	0
Exercise of warrants																																																		$ 0	$ 0	$ 0	50	0	0	50
Exercise of stock options (in shares)																																																		0	261,959	0
Exercise of stock options																																																		$ 0	$ 0	$ 0	144	0	0	144
Restricted stock units expense																																				$ 0	$ 0	$ 0	$ 23	$ 0	$ 0	$ 23
Declaration of dividends																																																		0	0	0	0	0	(302)	(302)
Other																																																		$ 0	$ 0	$ 0	0	0	(58)	(58)
Balance (in shares) at Sep. 30, 2022																																																		1,177,023	206,482,414	0
Balance at Sep. 30, 2022																																																		$ 0	$ 20	$ 0	173,543	0	(145,792)	27,771
Balance (in shares) at Dec. 31, 2022																																																		1,177,023	206,844,580	0
Balance at Dec. 31, 2022																																																		$ 0	$ 20	$ 0	179,723	0	(155,514)	24,229
Stock-based compensation expense																																																		0	0	0	5,902	0	0	5,902
Less: Preferred dividends																																																		$ 0	$ 0	$ 0	0	0	(362)	(362)
Common stock issued for acquisition (in shares)																																																		0	1,530,145	0
Common stock issued for acquisition																																																		$ 0	$ 0	$ 0	2,752	0	0	2,752
Net income (loss)																																																		$ 0	$ 0	$ 0	0	0	(9,212)	(9,212)
Exercise of warrants (in shares)																																																		3,200,000	4,400,000	0
Exercise of warrants																																																		$ 0	$ 1	$ 0	3,799	0	0	3,800
Exercise of stock options (in shares)																																																		0	75,000	0
Exercise of stock options																																																		$ 0	$ 0	$ 0	43	0	0	43
Stock-based compensation expense (in shares)																																																			(444)
Derivative liability impact to exercise of warrants																																																		$ 0	$ 0	$ 0	4,806	0	0	4,806
Balance (in shares) at Mar. 31, 2023																																																		4,377,023	212,849,281	0
Balance at Mar. 31, 2023																																																		$ 0	$ 21	$ 0	197,025	0	(165,088)	31,958
Balance (in shares) at Dec. 31, 2022																																																		1,177,023	206,844,580	0
Balance at Dec. 31, 2022																																																		$ 0	$ 20	$ 0	179,723	0	(155,514)	24,229
Less: Preferred dividends																																																								(1,086)
Less: Deemed dividend																																																								(2,885)
Net income (loss)																																																								$ (25,009)
Exercise of stock options (in shares)																																																								75,000
Balance (in shares) at Sep. 30, 2023																																																		4,377,023	215,039,868	0
Balance at Sep. 30, 2023																																																		$ 0	$ 21	$ 0	208,564	0	(184,475)	$ 24,110
Balance (in shares) at Mar. 31, 2023																																																		4,377,023	212,849,281	0
Balance at Mar. 31, 2023																																																		$ 0	$ 21	$ 0	197,025	0	(165,088)	31,958
Stock-based compensation expense																																																		0	0	0	4,964	0	0	4,964
Less: Preferred dividends																																																		0	0	0	0	0	(362)	(362)
Net income (loss)																																																		0	0	0	0	0	(8,846)	(8,846)
Other																																																		$ 0	$ 0	$ 0	0	0	19	19
Stock-based compensation expense (in shares)																																																			50,000
Balance (in shares) at Jun. 30, 2023																																																		4,377,023	212,899,281	0
Balance at Jun. 30, 2023																																																		$ 0	$ 21	$ 0	201,989	0	(174,277)	27,733
Stock-based compensation expense																																																		0	0	0	4,583	0	0	4,583
Less: Preferred dividends																																																		0	0	0	0	0	(362)	(362)
Less: Deemed dividend																																																		$ 0	$ 0	$ 0	0	0	(2,885)	(2,885)
Common stock issued for acquisition (in shares)																																																		0	2,085,264	0
Common stock issued for acquisition																																																		$ 0	$ 0	$ 0	2,000	0	0	2,000
Net income (loss)																																																		$ 0	$ 0	$ 0	0	0	(6,951)	(6,951)
Vesting of restricted stock units (in shares)																																																		0	55,323	0
Restricted stock units expense																																																		$ 0	$ 0	$ 0	(8)	0	0	(8)
Balance (in shares) at Sep. 30, 2023																																																		4,377,023	215,039,868	0
Balance at Sep. 30, 2023																																																		$ 0	$ 21	$ 0	$ 208,564	$ 0	$ (184,475)	$ 24,110

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Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Sep. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Cash flows from Operating Activities:
Net income (loss)	$ (6,951)	$ (9,212)	$ 14,407	$ (13,141)	$ (25,009)	$ (11,005)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Amortization					3,100	1,060
Depreciation					474	685
Stock-based compensation					15,449	20,514
Change in fair value of derivative liabilities	(57)				(1,713)	(28,669)
Amortization of debt discount					2,970	7,938
Loss on foreign currency exchange					53	86
Loss on impairment	56				114	0
Net loss (gain) from investments	(675)				(1,637)	1,343
Other expense, net					(1,308)	2,287
Change in deferred income taxes					(316)	(1,338)
Accounts receivable					17,934	(1,900)
Inventory					(1)	(73)
Deposits, prepaids and other current assets					(1,007)	(1,761)
Other assets / liabilities					195	(43)
Contract assets					(1,294)	(3,041)
Accounts payable					11,277	10,148
Other current liabilities					229	(1,196)
Contract liabilities					7,719	2,048
Net cash provided by (used in) operating activities					27,229	(2,917)
Cash flows from Investing Activities:
Acquisition of property, plant and equipment					(143)	(205)
Sale of intellectual property					1,308	179
Purchase of marketable securities					(27,766)	(45,430)
Sale of marketable securities					30,210	47,429
Cash acquired in acquisitions					1,845	105
Net cash provided by investing activities					166	484
Cash flows from Financing Activities:
Proceeds from sale of common stock					0	10,000
Proceeds from exercise of warrants					2,200	1,122
Proceeds from exercise of stock options					41	164
Draws from revolving line of credit					4,717	18,802
Payments on revolving line of credit					(9,741)	(18,548)
Tax withholding payments for vested stock-based compensation					(9)	(418)
Payment on financing lease					(252)	(78)
Payment of dividends on preferred stock					(1,086)	(818)
Redemption of Series B preferred stock					0	(685)
Net cash (used in) provided by financing activities					(2,530)	20,386
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash					(343)	45
Net Increase in Cash and Cash Equivalents					24,522	17,998
Cash, Cash Equivalents, and Restricted Cash, Beginning of Period		$ 27,723		$ 18,238	27,723	18,238	$ 18,238
Cash, Cash Equivalents, and Restricted Cash, End of Period	$ 52,245		$ 36,236		52,245	36,236	$ 27,723
Cash paid for interest expense					1,454	2,138
Cash paid for income taxes					1,538	485
Issuance of common stock for acquisition					2,000	17,530
Series C Preferred Stock [Member]
Cash flows from Financing Activities:
Proceeds from issuance of preferred stock					0	10,845
Series E Preferred Stock [Member]
Cash flows from Financing Activities:
Proceeds from issuance of preferred stock					1,600	0
ANS Acquisition [Member]
Cash flows from Investing Activities:
Acquisition					0	(363)
EV Depot [Member]
Cash flows from Investing Activities:
Acquisition of EV Depot					1	(1,231)
Greenspeed Acquisition [Member]
Cash flows from Investing Activities:
Acquisition					$ (5,289)	$ 0

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Note 1 - Nature of Operations

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Nature of Operations [Text Block]

Note 1. Nature of operations

Charge Enterprises, Inc. (the “Company”), (formerly known as “Transworld Holdings, Inc.”, “GoIP Global, Inc.” and “E Education Network, Inc.”) was incorporated in Nevada in 2003. The Company was subsequently redomiciled in Delaware.

The Company is an electrical, broadband and electric vehicle (“EV”) charging infrastructure company that provides clients with end-to-end project management services, from advising, designing, engineering, acquiring and installing equipment, to monitoring, servicing, and maintenance. The Company’s vision is to be a leader in enabling the next wave of transportation and connectivity. By building, designing, and operating seamless infrastructure for charging EVs and high-speed broadband, the Company aims to create a future where transportation is safe, reliable, clean, efficient, and connected.

The Company has two operating segments which also represent the Company’s reportable segments:

• Infrastructure, which has a primary focus on EV charging (“EVC”), broadband, including cell tower, small cell, and in-building applications, and electrical contracting services.

• Telecommunications, which provides connection of voice calls, Short Message Services (“SMS”), and data to global carriers.

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Note 2 - Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Significant Accounting Policies [Text Block]

Note 2. Summary of significant accounting policies

Basis of Presentation

The interim unaudited consolidated financial statements included herein have been prepared by the Company in accordance with: (i) generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information; and (ii) the instructions of the Securities and Exchange Commission (the “SEC”) for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments considered necessary for a fair statement of the results of operations and financial position for the interim periods presented. All such adjustments are of a normal and recurring nature. The Company’s results shown on an interim basis are not necessarily indicative of results for a full year.

This Form 10-Q should be read in conjunction with the current report on Form 8-K filed with the SEC on May 10, 2023 (the “May 10, 2023 Form 8-K”) and the consolidated financial statements and related notes included in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2022, and filed with the SEC on March 15, 2023, as part of the Company’s Annual Report on Form 10-K (the "2022 Annual Report"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.

There have been no material changes from Note 2, Summary of significant accounting policies, as described in the notes to the Company’s consolidated financial statements contained in the May 10, 2023 Form 8-K and the 2022 Annual Report, other than as noted below.

The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and the Company has and intends to continue to take advantage of certain exemptions from various reporting requirements.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and related disclosures, presented in U.S. dollars, have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC. The results and trends in these consolidated financial statements may not be representative for any future periods or the full year.

Revenue

Nature of Services

Infrastructure

The Company’s Infrastructure segment revenues are derived from: (i) broadband and wireless; (ii) electrical contracting services; (iii) electric vehicle charging infrastructure; and (iv) fleet services.

Broadband and wireless, electrical contracting, and electric vehicle charging infrastructure primarily involve design, engineering and construction services. Types of services typically include providing: (i) end-to-end network design and implementation services for telecommunication and wireless carriers, cable companies and enterprise organizations; (ii) cell tower construction and modification services for national and regional wireless service providers, tower owners, and federal, state, and local government agencies; (iii) cellular distributed antenna systems (“DAS”) and bi-directional antenna (“BDA”) public safety systems from initial Radio Frequency (“RF”) site assessment, through design, engineering, implementation, and testing; (iv) DAS maintenance and monitoring service, including an in-house 24 hour network operations center, utilizing Software-as-a-Service cloud-based software and customized maintenance program; (v) scalable and energy-efficient mission critical power systems to meet the demand of data equipment deployment for mission critical data centers; (vi) electrical and telecommunications construction and facilities services to commercial, industrial, and institutional facilities; and (vii) end-to-end solutions for safe, reliable, flexible and scalable charging ecosystems.

Projects can be performed under individual contracts or a statement of work under a master service agreement, which are generally multi-year agreements. The typical length of projects can vary and depends on size and complexity: broadband and wireless – two to three months; electrical contracting services – six months to three years; electric vehicle charging infrastructure – three to twelve months. 

The types of services for fleet services primarily involve leasing and maintenance of real property to commercial and fleet operator customers in return for payment. Lease agreements include fixed payments and vary in length from 12 months to 3 years.    

Telecommunications

The Company’s Telecommunications segment revenues are derived from operating a global telecommunication network consisting of domestic switching and related peripheral equipment, carrier-grade routers, and switches for internet and circuit-based services. Types of services typically include providing: (i) routing of voice, data, and SMS to Carriers and Mobile Network Operators (“MNO”) globally; and (ii) customers with internet-protocol-based and time-division multiplexing (“TDM”) access for the transport of long-distance voice and data minutes.

The Company’s Telecommunications segment operates an extensive network of direct routes and offers premium voice communication services for carrying a mix of business, residential and carrier long-distance traffic, data and transit traffic. Telecommunications has both a customer and vendor relationship with most parties. Telecommunications provides the customer routing services through the Telecommunications supplier routes on incoming calls and then Telecommunications purchases routing services from other vendor’s supplier routes in order to complete the call.

Revenue Recognition

Revenue is recognized when a customer obtains control of promised services. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised services in the contract; (ii) determination of whether the promised services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company’s primary revenue stream is from services. The Company recognizes as revenues the amount of the transaction price for the performance obligation when the performance obligation is satisfied or as it is satisfied.

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer, in an amount that reflects the consideration it expects to be entitled to in exchange for those products or services. The Company evaluates when it is appropriate to recognize revenues based on the gross amount invoiced to the customer or the net amount retained by the Company if a third party is involved.

A contract liability for deferred revenue is recorded when consideration is received or is unconditionally due from a customer prior to transferring control of goods or services to the customer under the terms of a contract. Deferred revenue balances typically result from advance payments received from customers for contracts or from billings in excess of revenue recognized on services arrangements.

Contract assets represent when revenues are recognized in advance of invoice issuance. These assets are presented separately on the consolidated balance sheet and are converted to accounts receivable once the Company’s right to the consideration becomes unconditional, which varies by contract but is generally based on achieving certain acceptance milestones. The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would be one year or less.

Infrastructure

Broadband and wireless, electrical contracting services, and electric vehicle charging projects often require significant services to integrate complex activities and equipment into a single deliverable and are therefore generally accounted for as a single performance obligation, even when delivering multiple services that are capable of being distinct. Contract amendments and change orders, which are generally not distinct from the existing contract, are typically accounted for as a modification of the existing contract and performance obligation.

The Company recognizes revenues from these services over time using an input method, based on assessment of performance completed to date. The Company uses the percentage of completion method when it measures its progress towards completion of the performance obligation based on the ratio of costs incurred to date to total estimated costs at completion under the contract. The Company believes that this approach faithfully depicts the Company’s performance toward complete satisfaction of the performance obligation as it accurately measures the transfer of control of the finished product to the customer. 

Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontracts, and the availability and timing of funding from the customer, among other variables. As a significant change in one or more of these estimates could affect the profitability of contracts, the Company updates contract-related estimates regularly through a review process in which management evaluates the progress and execution of each performance obligation and the estimated cost at completion. As part of this process, management reviews information including, but not limited to, any outstanding key contract matter, progress towards completion and the related program schedule and the related changes in estimates of revenues and costs. The Company recognizes adjustments in estimated profit on contracts on a cumulative catch-up basis. Therefore, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes a provision for the entire loss in the period it is identified.

The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders. The Company includes variable consideration in the estimated transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of variable consideration to be included in the transaction price, using the expected value or the most likely amount method, which is expected to better predict the amount. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessments of legal enforceability, performance, and all information that is reasonably available to the Company.

Fleet services include a single deliverable of leased parking spaces. The Company recognizes revenues from these services evenly over the life of the contracts.

Telecommunications

The amount of consideration the Company receives and revenue it recognizes is fixed based upon contractually agreed upon rates. The Company recognizes revenue at a point in time when the voice, data and SMS are routed, and the performance obligation is satisfied.

Revenue is earned based on the number of minutes during a call multiplied by the price per minute and is recorded upon completion of a call. Incomplete calls are not revenues earned by Telecommunications and may occur as a result of technical issues or because the customer’s credit limit was exceeded and thus the customer routing of traffic was prevented. Telecommunications evaluates gross versus net revenue recognition for each of its contractual arrangements by assessing indicators of control to determine whether Telecommunications acts as a principal (i.e., gross recognition) or an agent (i.e., net recognition). Telecommunications has determined that it acts as a principal for all of its performance obligations as Telecommunications may accept or reject calls, determines the routing decision and routing vendor and has the risk of financial loss on revenues from customers and amounts owed to the vendors. Net revenue represents gross revenue, net of allowance for doubtful accounts receivable, service credits and service adjustments. Cost of sales includes network costs that consist of access, transport and termination costs. The majority of Telecommunications’ cost of sales is variable, primarily based upon minutes of use, with transmission and termination costs being the most significant expense.

Refer to Note 4, Revenue, for additional information on the Company’s revenue.

Cost of Sales

Cost of sales consists primarily of network telecommunication costs, contracted services, salaries and related employee benefits, including stock-based compensation, material and equipment costs, travel and other costs related to vehicles, training and lease expense.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The Company implemented ASU 2016-13 on January 1, 2023. The impact of adopting this new guidance was not material.  

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 is designed to enhance comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. ASU 2021-08 was effective for the Company beginning January 1, 2023, under a prospective application. ASU 2021-08 requires the Company to measure contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with Accounting Standards Codification ("ASC") Topic 606 as if the Company had originated the contracts. The Company recorded contract assets and contract liabilities acquired in an acquisition in the current year at their respective acquisition date fair values as if it had originated the contracts. Refer to Note 6, Business combination, for additional information. 

In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current U.S. GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for the Company as of January 1, 2024. Early adoption is permitted. Management is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements, but currently does not believe ASU 2020-06 will have a significant impact on the Company’s financial statements because it no longer has convertible debt outstanding. The Company will continue to monitor relevant accounting pronouncements.

Reclassification 

Certain amounts included in the prior year financial statements and disclosures have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on the Company’s previously reported financial statements. 

Change in Accounting Principle 

Effective January 1, 2023, the Company changed its accounting principle for recognizing stock-based compensation expense from the graded vesting attribution method, where an award is divided into vesting increments or tranches, to the straight-line attribution method of accounting. The Company believes the straight-line attribution method more accurately reflects how awards are earned over its employees’ service periods. Also, it is the predominant method used in its industry, and therefore it better aligns the Company’s recognition of stock-based compensation expense with its peers. 

The retrospective application of the change in accounting principle had an effect on the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of stockholders’ equity. There was no net effect to the amounts reported for net cash provided by (used in) operating, investing or financing activities in the consolidated statements of cash flows for prior periods as a result of the change in accounting method. However, the net loss, change in deferred income taxes and stock-based compensation line items within net cash flows provided by operating activities each decreased as shown below to reflect the change in accounting method. 

The following tables present the comparative effect of the change in accounting principle and its effect on the Company’s current and previously reported financial statements. 

	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
	(amounts, in thousands, except per share data)
Stock-based compensation
Prior to revision	$	3,339		$	7,848		$	8,890		$	28,353
Revision		1,244			(1,981	)		6,559			(7,839	)
As revised	$	4,583		$	5,867		$	15,449		$	20,514
Loss from operations
Prior to revision	$	(5,117	)	$	(9,974	)	$	(17,901	)	$	(35,226	)
Revision		(1,244	)		1,981			(6,559	)		7,839
As revised	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income tax benefit (expense)
Prior to revision	$	(741	)	$	183		$	(1,093	)	$	1,772
Revision		-			(175	)		-			(436	)
As revised	$	(741	)	$	8		$	(1,093	)	$	1,336
Net income (loss)
Prior to revision	$	(5,707	)	$	14,375		$	(18,450	)	$	(18,408	)
Revision		(1,244	)		1,806			(6,559	)		7,403
As revised	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)
Basic income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.06		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.07		$	(0.14	)	$	(0.25	)
Diluted income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.05		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.06		$	(0.14	)	$	(0.25	)

The opening balances of accumulated deficit and additional paid in capital as of December 31, 2021, have been adjusted by $8.0 million and $9.1 million, respectively to reflect the cumulative effect of the change.

	As of
	September 30,			December 31,
	2023			2022
	(amounts, in thousands)
Net deferred tax (liability) asset
Prior to revision	$	(1,047	)	$	(1,389	)
Revision		(25	)		(21	)
As revised	$	(1,072	)	$	(1,410	)
Additional paid in capital
Prior to revision	$	220,083		$	197,816
Revision		(11,519	)		(18,093	)
As revised	$	208,564		$	179,723
Accumulated deficit
Prior to revision	$	(195,969	)	$	(173,586	)
Revision		11,494			18,072
As revised	$	(184,475	)	$	(155,514	)
Total stockholders' equity
Prior to revision	$	24,135		$	24,250
Revision		(25	)		(21	)
As revised	$	24,110		$	24,229

Stock-based compensation correction of immaterial error 

In 2023, the Company identified a misstatement related to its presentation of stock-based compensation in its consolidated statements of operations. Although determined to be immaterial, the Company elected to correct the immaterial misstatement and reclassified its stock-based compensation expense to the same financial statement line item as cash compensation paid to the same employees and nonemployees.

The reclassification reflects the change in accounting principle discussed above and had no incremental impact on the consolidated balance sheets, consolidated statements of comprehensive income (loss), consolidated statements of stockholders’ equity, or consolidated statement of cash flows. There was no net effect to the amounts reported for (loss) from operations as a result of this reclassification. However, cost of sales, gross profit, stock-based compensation, general and administrative, salaries and related benefits, and total operating expenses each were adjusted as shown below to reflect the reclassification. 

The following tables present the effect of the reclassification on the Company’s previously reported financial statements. 

	Year Ended
	December 31,
	2022			2021			2020
	(amounts, in thousands)
Cost of sales
Prior to revision	$	669,620		$	465,503		$	83,554
Revision		2,503			1,771			-
As revised	$	672,123		$	467,274		$	83,554
Gross Profit
Prior to revision	$	28,213		$	11,515		$	1,172
Revision		(2,503	)		(1,771	)		-
As revised	$	25,710		$	9,744		$	1,172
Stock-based compensation
Prior to revision	$	26,499		$	21,801		$	2,005
Revision		(26,499	)		(21,801	)		(2,005	)
As revised	$	-		$	-		$	-
General and administrative
Prior to revision	$	14,392		$	7,995		$	2,020
Revision		9,117			11,011			121
Other Reclassifications		(677	)		-			-
As revised	$	22,832		$	19,006		$	2,141
Salaries and related benefits
Prior to revision	$	16,667		$	8,806		$	687
Revision		14,879			9,019			1,884
Other Reclassifications		657			-			-
As revised	$	32,203		$	17,825		$	2,571
Total operating expenses
Prior to revision	$	67,225		$	40,977		$	5,922
Revision		(2,503	)		(1,771	)		-
Other Reclassifications		(20	)		-			-
As revised	$	64,702		$	39,206		$	5,922

	Three Months Ended
	March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022
	(amounts, in thousands)
Cost of sales
Prior to revision	$	156,812		$	173,760		$	178,951		$	160,097
Revision		804			704			506			489
Other Reclassifications		-			303			303			(606	)
As revised	$	157,616		$	174,767		$	179,760		$	159,980
Gross Profit
Prior to revision	$	6,166		$	7,281		$	6,906		$	7,860
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		606
As revised	$	5,362		$	6,274		$	6,097		$	7,977
Stock-based compensation
Prior to revision	$	7,424		$	7,223		$	5,867		$	5,985
Revision		(7,424	)		(7,223	)		(5,867	)		(5,985	)
As revised	$	-		$	-		$	-		$	-
General and administrative
Prior to revision	$	2,742		$	3,908		$	3,516		$	4,226
Revision		2,865			2,704			1,775			1,773
Other Reclassifications		-			(160	)		(150	)		(367	)
As revised	$	5,607		$	6,452		$	5,141		$	5,632
Salaries and related benefits
Prior to revision	$	4,193		$	4,127		$	4,417		$	3,930
Revision		3,755			3,815			3,586			3,723
Other Reclassifications		-			(143	)		(153	)		953
As revised	$	7,948		$	7,799		$	7,850		$	8,606
Total operating expenses
Prior to revision	$	15,632		$	17,209		$	14,899		$	19,485
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		586
As revised	$	14,828		$	16,202		$	14,090		$	19,582

	Three Months Ended
	March 31, 2023
	(amounts, in thousands)
Cost of sales
Prior to revision	$	186,828
Revision		432
As revised	$	187,260
Gross Profit
Prior to revision	$	6,721
Revision		(432	)
As revised	$	6,289
Stock-based compensation
Prior to revision	$	5,902
Revision		(5,902	)
As revised	$	-
General and administrative
Prior to revision	$	3,345
Revision		1,760
As revised	$	5,105
Salaries and related benefits
Prior to revision	$	5,418
Revision		3,710
As revised	$	9,128
Total operating expenses
Prior to revision	$	16,341
Revision		(432	)
As revised	$	15,909

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Note 3 - Fair Value Measurements

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note 3. Fair value measurements

Recurring Fair Value Measurements

The following table summarizes the Company’s assets and liabilities measured at fair value on a recurring basis:

	September 30, 2023
(in thousands)	Level 1		Level 2		Level 3		Measured at Net Asset Value as a Practical Expedient		Total
Assets:
Marketable securities (Note 5)	$	4,280	$	-	$	-	$	1,588	$	5,868
Liabilities:
Contingent consideration liability (Note 6)	$	-	$	-	$	5,758	$	-	$	5,758
Derivative liabilities (Note 10)	$	-	$	2	$	-	$	-	$	2

The market value of the equity securities is determined using quoted prices in active markets. The market value of underlying investments in funds is determined using the net asset value (“NAV”) provided by the administrator of the fund as a practical expedient. The NAV is determined by the fund’s trustee based upon the fair value of the underlying assets owned by the fund, less liabilities, divided by outstanding units. In accordance with appropriate accounting guidance, these investments have not been classified in the fair value hierarchy. This class includes investments in a closed end interval fund that invests in publicly traded equity securities of U.S. and foreign companies. There are no unfunded commitments related to this investment. Investment redemptions are limited to 25% of the fund’s outstanding shares but may be redeemed on a quarterly basis with 15 days’ notice. 

The Company had a contingent consideration liability of $3.5 million as of December 31, 2022, related to the Company’s acquisition of EV Group Holdings LLC, and its settlement occurred in the first quarter of 2023. The contingency was based on the Company's average share price for the month ending December 31, 2022. As a result of the settlement of this contingent consideration liability, the Company issued 1,530,145 additional shares of common stock to the sellers. The contingent consideration liability was reflected in accrued liabilities on the consolidated balance sheet, and the remeasurement was reflected in other income (expense), net on the consolidated statement of operations as of and for the period ended December 31, 2022.

In connection with the Greenspeed Acquisition (as defined in Note 6), completed on August 1, 2023, the Company recorded a liability for contingent consideration payable based upon the achievement of certain annual performance benchmarks over 2 years. The fair value of the liability is estimated using discounted cash flows. The significant unobservable inputs (Level 3) used to estimate the fair value include the projected EBITDA values for the 2 year earn-out period (as defined in the purchase agreement), and the discount rate. The contingent consideration measured at fair value using unobservable inputs as of September 30, 2023 is $5.8 million and is included in contingent consideration liability within non-current liabilities on the consolidated balance sheets. Refer to Note 6, Business combination, for additional information. 

Nonrecurring Fair Value Measurements

The Company also has investments in non-marketable securities, which are primarily equity securities in a non-public company that do not have readily determinable fair values. Such investments are initially recorded at cost and adjusted to fair value on a nonrecurring basis through earnings for observable price changes in orderly transactions for identical or similar transactions of the same company (Level 2 of U.S. GAAP fair value hierarchy). Historical adjustments have not been material. The carrying amount of these equity securities is $0.3 million and $0.2 million as of September 30, 2023, and December 31, 2022, respectively, and is included in non-marketable securities on the consolidated balance sheet. There was an immaterial increase in the non-marketable securities during the nine months ended September 30, 2023 and no change during the nine months ended September 30, 2022.

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Note 4 - Revenue

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note 4. Revenue

Contract Balances

The following table provides information about receivables, contract assets and contract liabilities from contracts with customers. Accounts receivable in the table below excludes other receivables that are not generated from contracts with customers. These amounts are $0.1 million and $0.0 million as of September 30, 2023, and December 31, 2022, respectively.

(in thousands)	September 30, 2023		December 31, 2022
Receivables included in "Accounts receivable net of allowances"	$	55,710	$	72,405
Contract assets		8,128		6,090
Contract liabilities		25,201		13,741

The Company has remaining performance obligations of $139.2 million at September 30, 2023. This figure is inclusive of the Company’s deferred revenue and backlog. The Company only includes projects within its backlog reporting if there is a signed contract, purchase order or other legally binding agreement. There can be no assurance that the Company’s backlog will be earned as revenue in any particular period, if at all. Included within this figure is $25.2 million of deferred revenue that is classified within current liabilities on the consolidated balance sheets. The Company expects to earn the full amount of its deferred revenue within the next twelve months. The Company anticipates it will recognize approximately 25% of its remaining performance obligations within backlog as revenue in 2023, approximately 74% in 2024, and the remainder in 2025.

Changes in Contract Balances 

The timing of revenue recognition, billings and cash collections results in accounts receivable, and customer advances and unearned revenue on the Company’s consolidated balance sheets. At times, the Company receives advance payments or deposits from its customers before revenue is recognized, resulting in contract liabilities. The contract liabilities primarily relate to the advance consideration received from customers on certain contracts. For these contracts, revenue is recognized in a manner that is consistent with the satisfaction of the underlying performance obligations. The contract liabilities are reported on the consolidated balance sheets on a contract-by-contract basis at the end of each respective reporting period within the contract liabilities line item.  

Significant changes in the balance of contract liabilities during the period are as follows: 

(in thousands)
Balance at December 31, 2022	$	13,741
Revenue recognized during the period that was included in the beginning balance		(12,945	)
Additions, net of revenue recognized during the period		24,405
Balance at September 30, 2023	$	25,201

Disaggregation of Revenue 

The following table presents the Company’s revenues disaggregated by segment: 

	Three Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Infrastructure	$	31,795	$	26,753
Telecommunications		100,482		159,104
Total	$	132,277	$	185,857

	Nine Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Infrastructure	$	89,246	$	71,804
Telecommunications		384,166		458,072
Total	$	473,412	$	529,876

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Note 5 - Marketable Securities and Other Investments

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Investment [Text Block]

Note 5. Marketable securities and other investments

The Company’s marketable securities are stated at fair value. Any changes in the fair value of the Company’s marketable securities are included within income (loss) from investments, net on the consolidated statement of operations.

Realized and unrealized gains and losses are determined on an average cost basis. The marketable securities are investments predominantly in shares of large publicly traded companies which are being invested until such time as the funds are needed for operations.

The fair value of these marketable securities is as follows:

(in thousands)	September 30, 2023		December 31, 2022
Brokerage Account	$	5,868	$	6,757

During the three months ended September 30, 2023, the Company recognized net gains of $0.7 million on marketable securities and other investments, which included $0.2 million of realized gains and $0.5 million of unrealized gains on marketable and non-marketable securities. During the nine months ended September 30, 2023, the Company recognized net gains of $1.6 million on marketable securities and other investments, which included $0.1 million of realized gains and $1.5 million of unrealized gains on marketable and non-marketable securities.

During the three months ended September 30, 2022, the Company recognized net losses of $0.2 million on marketable securities and other investments, which included $0.1 million of realized losses and $0.1 million of unrealized losses on marketable securities. During the nine months ended September 30, 2022, the Company recognized net losses of $1.3 million on marketable securities and other investments, which included $0.7 million of realized losses and $0.6 million of unrealized losses on marketable securities.

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Note 6- Business Combination

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note 6. Business combination

Greenspeed Energy Solutions, LLC

On August 1, 2023, the Company completed the acquisition of all of the issued and outstanding units of Greenspeed Energy Solutions, LLC ("Greenspeed") for up to $15.0 million, net of closing adjustments (the "Greenspeed Acquisition"). The consideration includes $6.0 million in cash consideration reduced for certain transaction expenses and working capital adjustments, $2.0 million in equity consideration at closing, and a performance-based earn-out over the next two years of up to $7.0 million. The Company recorded the performance-based earn-out as a contingent consideration liability at the acquisition date of approximately $5.8 million.  

The following table summarizes the total consideration as well as the preliminary fair values of the net assets acquired, and liabilities assumed as of the acquisition date. The final determination of the fair value of certain assets and liabilities will be completed within the one year measurement period from the date of acquisition as required by ASC Topic 805, Business Combinations. As of September 30, 2023, the valuation studies necessary to determine the fair market value of the assets acquired and liabilities assumed are preliminary, including the validation of the underlying cash flows used to determine the fair values. Any potential adjustments could be material in relation to the preliminary values presented below.  

(in thousands)	Preliminary Estimates
Cash	$	5,289
Common stock		2,000
Contingent consideration		5,758
Total Consideration	$	13,047
Fair values of identifiable net assets and liabilities:
Assets:
Current assets
Cash		1,845
Accounts receivable		1,315
Deposits, prepaids and other current assets		9
Inventory		205
Contract assets		744
Total current assets		4,118
Property, plant and equipment		212
Operating lease right-of-use assets		259
Goodwill		13,234
Total assets		17,823
Liabilities:
Current liabilities
Accounts payable		542
Accrued liabilities		77
Contract liabilities		3,741
Operating lease liabilities		54
Finance lease liabilities		50
Total current liabilities		4,464
Non-current liabilities
Operating lease liabilities, non-current		214
Finance lease liabilities, non-current		98
Total liabilities		4,776
Total fair value of identifiable net assets and liabilities	$	13,047

Management believes that the Greenspeed Acquisition provides the Company with an opportunity to benefit from technical knowledge, and expected synergies from combining operations. The goodwill is not deductible for income tax purposes.  

The inclusion of the Greenspeed Acquisition in the Company's consolidated financial statements is not deemed material with respect to the requirement to provide pro-forma results of operations. As such, pro-forma information is not presented. 

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Note 7 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 7. Goodwill and intangible assets

Goodwill is not amortized for book purposes, however, it may be amortized for tax purposes. The Company accounts for its acquired customer relationships, backlogs, non-compete agreements, favorable leases and brand assets as definite-lived intangible assets. Goodwill is reviewed at least annually for impairment. At the time of each review, if the fair value of a reporting unit is less than its respective carrying value, then a charge is recorded to the results of operations.

The following table presents goodwill by reportable segment:

(in thousands)	Infrastructure		Telecommunications		Consolidated Total
Goodwill, net, as of December 31, 2022	$	11,900	$	772	$	12,672
Acquisition (See Note 6)	$	13,234	$	-	$	13,234
Goodwill, net, as of September 30, 2023	$	25,134	$	772	$	25,906

The Company’s goodwill is tested for impairment on an annual basis and more often if indications of impairment exist. The Company conducts its annual impairment analyses as of October 1 each year. There were no indicators of impairment during the three-month and nine-month period ended  September 30, 2023.

The Company performs a review of its intangible assets for impairment when evidence exists that the carrying value of an asset may not be recoverable. There were no events or changes in circumstances which indicated the Company’s intangible assets may not be recoverable. Accordingly, no impairment assessments were conducted on its intangible assets during the three-month and nine-month period ended September 30, 2023.

The following table presents intangible assets:

	September 30, 2023							December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	30,849	$	(4,031	)	$	26,818	$	30,849	$	(2,489	)	$	28,360
Backlog		3,322		(1,938	)		1,384		3,322		(1,107	)		2,215
Non-compete agreements		3,729		(1,594	)		2,135		3,729		(895	)		2,834
Off-market favorable leases		955		(955	)		-		955		(955	)		-
Brand		560		(65	)		495		560		(37	)		523
Total	$	39,415	$	(8,583	)	$	30,832	$	39,415	$	(5,483	)	$	33,932

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Note 8 - Related Party Transactions

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Related Party Transactions Disclosure [Text Block]

Note 8. Related party transactions

On August 31, 2023, the Company entered into a separation and consulting agreement with Andrew Fox, the Company's former Chief Executive Officer and a current member of the Company's Board of Directors. The agreement provides for the continued vesting of stock options previously granted to Mr. Fox and extends the exercise period for those options through October 11, 2025. Pursuant to this agreement, Mr. Fox will serve as a strategic advisor to the Board of Directors for a one-year initial term with compensation of approximately $0.5 million.

On August 11, 2023, the Company entered into a Securities Purchase Agreement with KORR Value, L.P. (the “August 2023 SPA”), pursuant to which, beginning on October 15, 2023 and through March 31, 2024, the Company has the right, but not the obligation, to sell, and to require the purchaser to purchase, up to $5.0 million of common stock, at a purchase price of $1.00 per share. The Company will be obligated to issue warrants to purchase 1,000,000 shares of common stock on the date the Company first elects to require the purchaser to purchase shares pursuant to the August 2023 SPA. Such warrants would have a two-year term and an exercise price of $1.50 per share. Kenneth Orr, a beneficial owner of more than 5% of the Company’s common stock and the former Chairman of the Company, has sole voting and dispositive power over the shares held by KORR Value, L.P.

Greenspeed obtains lighting materials and equipment for certain projects from a related party, Greenwave Partners, LLC ("Greenwave"). Greenwave has established relationships with lighting suppliers as a wholesaler and is able to obtain lighting materials and equipment on more economical terms than Greenspeed.  Cost savings are passed on to Greenspeed. During the nine months ended September 30, 2023, the total amount invoiced from Greenwave to Greenspeed was approximately $0.2 million. Paul Williams is the President and CEO of Greenspeed and also is a member of Greenwave.

In 2022, the Company entered into a special advisor agreement with KORR Acquisitions Group, Inc., an entity controlled by Kenneth Orr, and a stockholder of the Company. The agreement included an upfront payment of $0.5 million and currently includes a monthly advisory fee of $25,000.

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Note 9 - Debt

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Debt Disclosure [Text Block]

Note 9. Debt

Debt was comprised of the following as of the periods indicated:

(in thousands)	September 30, 2023			December 31, 2022
Line of Credit
ANS Line of Credit	$	-		$	5,024
Total Line of Credit		-			5,024
Notes Payable
Issued on May 19, 2021		11,860			11,860
Issued on December 17, 2021		15,926			15,926
Total Face Value of Notes Payable		27,786			27,786
Less: Unamortized Discount		(660	)		(3,630	)
Net Carrying Value of Notes Payable		27,126			24,156
Total debt before deferred financing costs		27,126			29,180
Current amount of Notes Payable		27,126			24,156
Current amount of Line of Credit		-			5,024
Total current portion of long-term debt		27,126			29,180
Total long-term debt, net of current portion	$	-		$	-

Convertible notes payable

May 2020 Financing

On May 8, 2020, the Company entered into a securities purchase agreement with certain institutional investors (collectively, the “May 2020 Investors”) pursuant to which the Company issued convertible notes in an aggregate principal amount of $3.0 million for an aggregate purchase price of $2.7 million (the “May 2020 Convertible Notes”). In connection with the issuance of the May 2020 Convertible Notes, the Company issued to the May 2020 Investors warrants to purchase an aggregate of 7,600,000 shares of common stock (collectively, the “Warrants”) and 7.5 shares of series G convertible preferred stock (the “Series G preferred stock”). The May 2020 Convertible Notes’ maturity date of May 8, 2021, was subsequently extended to  May 8, 2023. The May 2020 Convertible Notes accrued interest at a rate of 8% per annum, subject to increase to 20% per annum upon and during the occurrence of an event of default. Interest was payable in cash on a quarterly basis beginning on December 31, 2020.

November 2020 Financing

On November 3, 2020, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “November 2020 Investors”) pursuant to which it issued convertible notes in an aggregate principal amount of $3.9 million for an aggregate purchase price of $3.5 million (the “November 2020 Convertible Notes”). In connection with the issuance of the November 2020 Convertible Notes, the Company issued to the November 2020 Investors 903,226 shares of common stock. The November 2020 Convertible Notes were convertible at any time, at the holder’s option, into shares of the Company’s common stock at a conversion price of $0.25 per share. The November 2020 Convertible Notes’ maturity was extended from November 3, 2023, to  November 3, 2024. The November 2020 Convertible Notes accrued interest at a rate of 8% per annum.

May 2021 Financing

On May 19, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “May 2021 Investors”) pursuant to which it issued convertible notes in an aggregate principal amount of $5.6 million for an aggregate purchase price of $5.0 million (collectively, the “May 2021 Convertible Notes” and together with the May 2020 Convertible Notes and the November 2020 Convertible Notes, the “Convertible Notes”). In connection with the issuance of the May 2021 Convertible Notes, the Company issued to the May 2021 Investors warrants to acquire 1,870,000 shares of common stock. The May 2021 Convertible Notes were convertible at any time, at the holder’s option, into shares of the Company’s common stock at a conversion price of $3.00 per share. The May 2021 Convertible Notes were due to mature on  May 19, 2024. The May 2021 Convertible Notes accrued interest at a rate of 8% per annum.

Conversion of Convertible Notes to Preferred Stock

In the second quarter of 2022, the Convertible Notes were exchanged for 1,177,023 shares of Series D preferred stock (“Series D preferred stock”). As a result of this exchange, the Company has no Convertible Notes Payable outstanding at September 30, 2023, and December 31, 2022. Refer to Note 13, Stockholders’ equity, for additional information. 

The Company has accounted for all Convertible Notes Payable as a financing transaction, wherein the net proceeds that were received were allocated to the financial instrument issued. Prior to making the accounting allocation, the Company evaluated the Convertible Notes under ASC 815, Derivatives and Hedging, which generally requires the analysis of embedded terms and features that have characteristics of derivatives to be evaluated for bifurcation and separate accounting in instances where their economic risks and characteristics are not clearly and closely related to the risks of the host contract. None of the terms and features embedded in the notes required bifurcation and liability classification.

The Company analyzed the detachable warrants under ASC 480 and ASC 815. The warrants did not fall under the guidance of ASC 480. After analyzing the warrants under ASC 815, it was determined that the warrants met all of the requirements for equity classification under guidance of ASC 815-40-25-1 through 6.

Line of credit

Nextridge Inc. (“Nextridge”) and its operating subsidiary Advance Network Services, LLC. (“ANS”) have a revolving $8.0 million line of credit (the “ANS Line of Credit”) available with a bank, collateralized by all the assets of Nextridge and ANS. Interest is payable monthly at the Wall Street Journal prime rate (8.50% and 7.50% at September 30, 2023, and December 31, 2022, respectively). As of September 30, 2023, and December 31, 2022, the Company had outstanding balances of $0 and $5.0 million, respectively, on this ANS Line of Credit.

On October 25, 2022, Nextridge and ANS renewed the ANS Line of Credit increasing the availability from $4.0 million to $8.0 million. Borrowings under the ANS Line of Credit will bear interest at a floating rate at the Wall Street Journal prime rate with a floor of 5%. Advances under the line of credit are limited to 70% and 50% of Nextridge and ANS’ eligible accounts receivable and work in progress, respectively. At each fiscal year end, Nextridge and ANS must maintain a minimum debt service coverage ratio of 1.2:1 and maximum debt/tangible net worth ratio of 3:1. The outstanding balance on the ANS Line of Credit is payable upon demand by the bank. In addition to the security interest in the assets of Nextridge and ANS, the line of credit is guaranteed by the Company and Charge Infrastructure Holdings, Inc., the parent of Nextridge and ANS and a subsidiary of the Company. At December 31, 2022, the Company was in compliance with the aforementioned covenants. The ANS Line of Credit has a termination date of October 31, 2024.

On November 18, 2022, Nextridge and ANS renewed a $750,000 equipment and vehicle line of credit available with a bank. Interest is payable monthly at the Wall Street Journal prime rate. On December 1, 2023, the line will convert to a term loan with the then five-year Federal Home Loan Bank rate + 2.5% and have a five-year term with a five-year amortization. There are no financial commitments or covenants on the line of credit. As of September 30, 2023, and December 31, 2022, the Company had no outstanding balance on this line of credit.

B W Electrical Services, LLC. (“BW”) had a revolving $3.0 million line of credit (the “BW Line of Credit”) available with a bank, collateralized by all the assets of BW. Interest was payable monthly at the Wall Street Journal prime rate (8.50% and 7.50% at September 30, 2023, and December 31, 2022, respectively). Effective July 26, 2023, BW renewed the facility with substantially the same terms and an expiration of August 1, 2024. 

Advances under the BW Line of Credit are limited to 75% of BW’s eligible accounts receivable. At all times during the loan term BW is required to maintain a minimum increase in the net retained earnings of $0.2 million tested annually and maintain a maximum seller funded debt to EBIDA of 2.0x tested semi-annually on a trailing twelve-month basis beginning with the period ended June 30, 2022. In addition to the security interest in the assets of BW, the BW Line of Credit is guaranteed by the Company and Charge Infrastructure Holdings, Inc., the parent of BW and a subsidiary of the Company. As of September 30, 2023, and December 31, 2022, the Company had no outstanding balance on the BW Line of Credit. At September 30, 2023, and December 31, 2022, the Company was in compliance with the aforementioned covenants.

Notes payable

On May 19, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “May 2021 Investors”) pursuant to which it issued notes payable in an aggregate face value (includes 7.5% premium and 10% original issue discount) of $11.8 million for an aggregate purchase price of $10.0 million (the “May 2021 Notes”). The May 2021 Notes have a coupon of 8% and an 18-month term, subject to increase to 20% per annum upon and during the occurrence of an event of default. The May 2021 Notes’ original maturity date of November 19, 2022, was extended to November 19, 2023.

On December 17, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP (the “December 2021 Investors”) pursuant to which it issued a note payable in an aggregated face value of $15.9 million for an aggregate purchase price of $13.3 million (collectively, the “December 2021 Notes” and together with the May 2021 Notes, the “Notes”). The December 2021 Notes have a coupon of 7.5% and a 23-month term, subject to increase to 20% per annum upon and during the occurrence of an event of default. The December 2021 Notes mature on November 19, 2023.

The securities purchase agreements entered into in May 2021 and December 2021 include certain affirmative and negative covenants, including, but not limited to, participation rights in future debt and equity offerings, restrictions on future variable rate transactions and limitations on the Company’s ability to incur indebtedness other than Permitted Indebtedness (as defined in the respective agreements) while liabilities to the investors remain outstanding. The securities purchase agreement entered into in December 2021 Notes also contain a most-favored nations provision, such that, if the Company subsequently issues securities having more favorable terms (“Other Securities”), the purchasers may exchange their securities for Other Securities.  

Interest Expense

The components of interest expense are as follows:

	Three Months Ended September 30,
(in thousands)	2023			2022
Interest expense	$	(499	)	$	(520	)
Amortization of debt discount		(990	)		(495	)
Total net interest expense	$	(1,489	)	$	(1,015	)

	Nine Months Ended September 30,
(in thousands)	2023			2022
Interest expense	$	(1,545	)	$	(2,001	)
Amortization of debt discount		(2,970	)		(7,938	)
Total net interest expense	$	(4,515	)	$	(9,939	)

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Note 10 - Derivative Liabilities

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 10. Derivative liabilities

The Company does not use financial derivative instruments to manage risk. In June 2022, the Company exchanged the outstanding convertible debt for Series D preferred stock (“Series D preferred stock”). Concurrently, the warrants that were granted along with the original convertible debt were amended to provide, at the holders’ choice, the option to exercise for a to-be-issued class of preferred stock, which are convertible into the same number of shares of common stock as would have been issued upon exercise of such warrants under the original terms. This amendment caused the instruments to be treated as a derivative liability beginning on June 30, 2022. The warrants were reclassified from equity to a derivative liability and measured at fair value using a Black Scholes model (Level 2 of U.S. GAAP fair value hierarchy), which included inputs for exercise price, stock price, term to expiration, volatility, and interest rate. The impact was a derivative liability of approximately $40.4 million and a deemed dividend of approximately $32.8 million. This derivative liability is revalued on a recurring basis with changes in the fair value of the derivative recorded through the consolidated statement of operations.

In the first quarter of 2023, the Arena Investors (defined below) exercised 7.6 million warrants issued in May 2020 (the “May 2020 Warrants”) into: (i) 4.4 million shares of common stock; and (ii) 3.2 million shares of Series E preferred stock (“Series E preferred stock”). In connection with this exercise, the Company revalued the exercised warrants immediately before the exercise and recorded a gain of $0.9 million with an offsetting reduction to the outstanding derivative liability. The Company revalued the remaining warrants as of March 31, 2023, June 30, 2023, and September 30, 2023, and recorded a gain of $0.5 million, $0.3 million, and $0.1 million, respectively, with an offsetting reduction to the outstanding derivative liability. These gains on the remeasurement of the warrants are included in the Change in fair value of derivative liabilities line item on the consolidated statement of operations. Refer to Note 13, Stockholders’ equity, and Note 14, Stock-based compensation, for additional information.

The following tables summarize the effects on the Company’s gain (loss) associated with changes in the fair values of the derivative financial instruments by type of financing reflected on the change in fair value of derivative liabilities line on the consolidated statement of operations:

	Three Months Ended September 30,
(in thousands)	2023			2022
Derivative liability beginning balance	$	59		$	40,443
Change in fair value of derivative liabilities		(57	)		(28,669	)
Derivative liability ending balance	$	2		$	11,774

	Nine Months Ended September 30,
(in thousands)	2023			2022
Derivative liability beginning balance	$	6,521		$	-
Reclassification of derivative		-			40,443
Change in fair value of derivative liabilities		(1,713	)		(28,669	)
Warrant exercise		(4,806	)		-
Derivative liability ending balance	$	2		$	11,774

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Note 11 - Leases

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessor, Operating Leases [Text Block]

Note 11. Leases

Lease Revenue

The Company leases commercial properties under agreements that are classified as operating leases. The Company’s commercial property leases generally include minimum rents and do not include recoveries for property taxes and common area maintenance.

The Company’s rental revenues are earned from its operating subsidiary EVDepot, LLC (“EV Depot”) operations and are a component of Infrastructure revenues disclosed in Note 4, Revenue. The following table summarizes the fixed components of rental revenue for the nine and three months ended September 30, 2022, and 2022:

	Three Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Fixed component	$	844	$	1,139
Variable component		-		-
Total	$	844	$	1,139

	Nine Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Fixed component	$	2,577	$	3,549
Variable component		-		-
Total	$	2,577	$	3,549

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Note 12 - Reportable Segments

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 12. Reportable segments

The Company has two reportable operating segments - Infrastructure, and Telecommunications. The Company also has a Non-operating corporate segment. All inter-segment revenues are eliminated.

Refer to Note 4, Revenue, for additional information on the Company’s revenue by segment. Summary information with respect to the Company’s income (loss) from operations is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Income (loss) from operations:
Infrastructure	$	658		$	(1,152	)	$	(2,207	)	$	(4,294	)
Telecommunications		108			181			(29	)		806
Non-operating corporate		(7,127	)		(7,022	)		(22,224	)		(23,899	)
Total	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)

A reconciliation of the Company’s consolidated segment loss from operations to consolidated loss from operations before income taxes and net loss is as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Loss from operations	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income (loss) from investments, net		675			(200	)		1,637			(1,343	)
Change in fair value of derivative liabilities		57			28,669			1,713			28,669
Interest expense		(1,489	)		(1,015	)		(4,515	)		(9,939	)
Loss on impairment		(56	)		-			(114	)		-
Other income (expense), net		848			(3,289	)		1,876			(2,255	)
Foreign exchange gain (loss)		116			1			(53	)		(86	)
Total other expenses		151			24,166			544			15,046
Income (loss) before income taxes		(6,210	)		16,173			(23,916	)		(12,341	)
Income tax (expense) benefit		(741	)		8			(1,093	)		1,336
Net income (loss)	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)

Summary information with respect to the Company’s operating segments is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Depreciation and amortization:
Infrastructure	$	1,166	$	391	$	3,539	$	1,618
Telecommunications		6		42		35		127
Total	$	1,172	$	433	$	3,574	$	1,745

	Nine Months Ended September 30,
(in thousands)	2023		2022
Capital expenditures:
Infrastructure	$	143	$	205
Telecommunications		-		-
Total	$	143	$	205

(in thousands)	September 30, 2023		December 31, 2022
Investments:
Infrastructure	$	1,595	$	1,389
Telecommunications		-		-
Non-operating corporate		4,552		5,604
Total	$	6,147	$	6,993

(in thousands)	September 30, 2023		December 31, 2022 (As Adjusted)
Assets:
Infrastructure	$	114,628	$	102,248
Telecommunications		54,880		42,046
Non-operating corporate		18,009		24,160
Total	$	187,517	$	168,454

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Note 13 - Stockholders' Equity

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Equity [Text Block]

Note 13. Stockholders’ equity

The Company has evaluated each series of preferred stock for proper classification under ASC 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives and Hedging. ASC 480 generally requires liability classification for financial instruments that are certain to be redeemed, as they represent obligations to purchase shares of stock or represent obligations to issue a variable number of common shares. Series C preferred stock ("Series C preferred stock") is classified as a liability within mezzanine equity on the consolidated balance sheet as of September 30, 2023, and December 31, 2022.

The Company has 20,000,000 shares of preferred stock authorized with a par value of $0.0001.

Permanent Equity

Preferred Stock

Series D: On June 30, 2022, the Company entered into an exchange agreement with funds affiliated with Arena Investors LP (“Arena Investors”) pursuant to which the Company issued 1,177,023 shares of Series D preferred stock. The Series D preferred stock was issued in exchange for the Convertible Notes. The total principal of the Convertible Notes was $12.5 million. The remaining unamortized discount as of June 30, 2022, of $4.3 million was fully amortized during the period ended June 30, 2022, and included in interest expense on the consolidated statement of operations. As of September 30, 2023, and December 31, 2022, there were 1,177,023 shares of Series D preferred stock issued and outstanding.

The Series D preferred stock has the following designations:

● Convertible at the option of the holder into common stock at $0.4248 per share

● The Series D liquidation preference is equal to $10.6191 per share

● The holders are entitled to receive cumulative quarterly dividends at a fixed annual rate of 2.25% of the liquidation preference, or $0.23893 per share

● The liquidation preference is senior in liquidation rights to holders of common stock.

● No voting rights

In addition to the exchange of the Convertible Notes, the related 11.8 million outstanding warrants to purchase common stock were amended to allow the holder to exercise for a to-be-issued class of the Company’s preferred stock, convertible into the same number of shares of common stock as would have been issued upon exercise of such warrants under the original terms. This amendment caused the instruments to be treated as a derivative liability beginning on June 30, 2022. The transition to derivative accounting created a derivative liability of $40.4 million and a related deemed dividend of $32.8 million. Changes in the fair value of the derivative liability are marked to market through the consolidated statement of operations in the respective period.

Series E: In connection with the Series D preferred stock discussed above, the Company entered into an agreement with the Arena Investors pursuant to which the holder of the 11.8 million outstanding warrants to purchase common stock was allowed to exercise for shares of a to-be-issued class of preferred stock. Pursuant to this provision, on March 14, 2023, the Arena Investors exercised the warrants issued in May 2020 (the “May 2020 Warrants”) into: (i) 4.4 million shares of common stock; and (ii) 3.2 million shares of Series E preferred stock.

The Series E preferred stock has the following designations:

● Convertible at the option of the holder at $0.50 per share of common stock

● The liquidation preference is senior in liquidation rights to holders of common stock.

● No dividends

● No voting rights

Common Stock

On April 20, 2022, the Company entered into a securities purchase agreement with an affiliate of Island Capital Group, LLC pursuant to which the Company issued 1,428,575 shares of Charge’s common stock and three-year warrants to purchase up to 2,000,000 shares of Charge’s common stock at $8.50 per share for an aggregate purchase price of $10.0 million. The purchase price was allocated between common stock and warrants and is reported within common stock and additional paid-in capital on the consolidated balance sheet. Pursuant to the purchase agreement, until February 2025, the purchaser has the right to participate, up to 25% in any issuance by the Company of indebtedness, common stock or common stock equivalents for cash other than exempt issuances, as defined in the agreement.

On December 8, 2020, the Company entered into a Private Placement Agreement for the purchase of up to an aggregate $2.5 million of Charge’s common stock at $0.25 per share. In connection with this agreement, the Company issued 8.7 million shares for an aggregate purchase price of $2.2 million. The shares were issued on January 15, 2021.

Mezzanine Equity

Preferred Stock

Series C: On December 17, 2021, the Company entered into a securities purchase agreement with funds affiliated with Arena Investors LP pursuant to which the Company issued 2,370,370 shares of Series C preferred stock at an aggregate face value of $7.4 million for an aggregate purchase price of $6.7 million. In connection with the issuance of the Series C preferred stock, the Company also issued warrants to purchase 2,370,370 shares of the Company’s common stock. The Company has valued and recorded the beneficial conversion feature of the Series C preferred stock and the warrants resulting in a deemed dividend at the time of issuance.

On February 25, 2022, the Company entered into a securities purchase agreement with an affiliate of Island Capital Group LLC pursuant to which it issued 3,856,000 shares of Series C preferred stock at an aggregate face value of $12.1 million for an aggregate purchase price of $10.8 million. The Company has valued and recorded the beneficial conversion feature of the Series C preferred stock resulting in a deemed dividend at the time of issuance. As of September 30, 2023, and December 31, 2022, there were 6,226,370 shares of Series C preferred stock issued and outstanding.

The Series C preferred stock has the following designations:

● Convertible at the option of the holder at a conversion price of $3.125 per share

● The holders are entitled to receive cumulative dividends at 6% per annum, payable monthly

● In the event of reorganization, this class of preferred will not be affected by any such capital reorganization

● The Series C liquidation preference is equal to the stated value, plus any accrued and unpaid dividends

● Change of control provision whereby the Series C preferred shareholders would receive their stated value before all other shareholders

● No voting rights

● The liquidation preference is senior in liquidation rights to holders of common stock.

● Redemption features:

o If the closing price on any particular date exceeds 200% of the effective conversion price, the Company may force the conversion of preferred stock with 10 days written notice;

o At any time after the original issue date, the Company has the option to redeem some or all the outstanding preferred stock for cash within 10 days written notice; and

o On the third anniversary of the issue date, the holder may request redemption, at the Company’s option of cash or common stock, at the conversion price equal to the three-year redemption amount (a) 100% of the aggregate stated value then outstanding, (b) accrued but unpaid dividend, (c) additional cash consideration in order for the Purchasers to achieve a 20% internal rate of return, and (d) all liquidated damages and other amounts due in respect of the preferred stock.

The Series C preferred stock provides that the Company shall redeem the preferred stock for cash or common stock at the Company’s option and, therefore, is not considered mandatorily redeemable. However, due to the change in control provision, the Series C preferred stock has liquidation preference and is deemed a liability and presented within mezzanine equity on the consolidated balance sheet as of September 30, 2023, and December 31, 2022.

During the third quarter of 2023, the Company determined there were facts and circumstances outside the holders' control which may prevent the Series C preferred stock from becoming redeemable by the holders. The Series C is classified as mezzanine equity due to the presence of the right of the holders to redeem outside of the Company's control. The holders' redemption is scheduled to occur on the third anniversary of the issue date and would occur based solely on the passage of time. However, due to changes in the underlying facts and circumstances, the Company concluded that it is not probable that the Series C preferred stock will become redeemable by the holders. The Company has the right to optionally redeem the Series C preferred stock prior to the third anniversary of the issue date. Therefore, the Company subsequently remeasured its Series C preferred stock to its maximum redemption amount at the balance sheet date. This subsequent remeasurement increased the carrying value of the Series C preferred stock to the face value of $19.5 million.    

Warrants 

Warrant activity is summarized as follows: 

	Number of Warrants			Weighted Average			Weighted Average Remaining Contractual Life
	(in thousands)			Exercise Price			(in years)
Warrants outstanding at January 1, 2022		24,085		$	1.74			3.0
Issued		2,000			8.50			2.8
Exercised		(8,183	)		(1.59	)		N/A
Expired		-			-			N/A
Warrants outstanding at December 31, 2022		17,902		$	2.56			1.8
Warrants exercisable at December 31, 2022		17,902		$	2.56			1.8
Issued		-			-
Exercised		(7,600	)		0.50			N/A
Expired		-			-			N/A
Warrants outstanding at September 30, 2023		10,302		$	4.08			2.1
Warrants exercisable at September 30, 2023		10,302		$	4.08			2.1

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Note 14 - Stock-based Compensation

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Share-Based Payment Arrangement [Text Block]

Note 14. Stock-based compensation

2020 Omnibus Equity Incentive Plan

On January 11, 2021, the Company’s Board of Directors and a majority of its stockholders adopted the 2020 Omnibus Equity Incentive Plan (the “2020 Plan”), as amended and restated as of May 7, 2021, and on December 23, 2021, with 75.0 million shares available for issuance. Under the 2020 Plan, the Company may grant stock options, restricted stock, dividend equivalents, restricted stock units, stock appreciation rights, and other stock or cash-based awards to individuals who are employees, officers, non-employee directors or consultants of the Company. The vesting periods range from one to four years. As of September 30, 2023, approximately 35.8 million shares remain available for issuance under the 2020 Plan.

Non-Qualified Stock Option Agreement

On November 1, 2020, Transworld Holdings, Inc. granted 10.5 million non-qualified stock options to the spouse of the Interim Chief Executive Officer and current member of the Company’s Board of Directors for service in facilitating and completing the acquisition of PTGi International Carrier Services, Inc. (“PTGi”). The stock options have an exercise price of $0.55, vest over a period of three years from the grant date and have a contractual term of 10 years. The grant date fair value of these stock options using the Black Scholes Model ("BSM") valuation was $0.51 per share. These non-qualified stock options are separate from the 2020 Plan.

Stock options

Stock option activity is summarized as follows:

	Number of Shares (in thousands)			Weighted Average Exercise Price		Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Term (in years)
Options outstanding at December 31, 2022		49,576		$	2.07		-		-
Options granted		7,480			1.04		-		-
Options exercised		(75	)		0.55		-		-
Options cancelled		(8,553	)		2.85		-		-
Options outstanding at September 30, 2023		48,428		$	1.77	$	122		4.79
Options exercisable at September 30, 2023		26,943		$	1.60	$	92		3.97
Vested and expected to vest at September 30, 2023		48,428		$	1.77	$	122		4.79

The weighted-average grant date fair value of all options granted during the three and nine months ended September 30, 2023, was $0.53 and $0.62, respectively. The total intrinsic value of stock options exercised during the three and nine months ended September 30, 2023, was $0.0 million and $0.1 million, respectively. The total intrinsic value of stock options exercised during the three and nine months ended September 30, 2022, was $0.7 million. At September 30, 2023 there was $22.9 million of unrecognized stock-based compensation cost related to unvested stock options that is expected to be recognized over a weighted-average period of 1.5 years.

The Company uses the following assumptions in its BSM valuation for stock options granted:

	Nine Months Ended September 30,
Weighted risk-free interest rate 1		3.5	%
Weighted-average volatility 2		59	%
Weighted expected dividend yield 3		-	%
Weighted expected term (in years) 4		5.7

_{1. Risk-free interest rate - Determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options.} 

_{2. Expected volatility - Determined based on a blend of the Company}’_{s historic stock price volatility and the historic volatility of a peer group of publicly traded companies.}  

_{3. Expected dividend yield - Determined to be zero as the Company has not and does not currently plan to issue dividends.} 

_{4. Expected term - Determined using the} “_{simplified method}” _{for estimating the expected option life, which is the midpoint of the weighted-average vesting period and contractual term of the option.}  

Restricted stock units

Restricted stock unit (“RSU”) activity is summarized as follows:

	Number of			Weighted Average
	Shares (in thousands)			Grant Date Fair Value
RSUs outstanding at December 31, 2022		405		$	2.26
RSUs granted		40			0.92
RSUs released		(76	)		2.27
RSUs forfeited		(100	)		2.22
RSUs outstanding at September 30, 2023		269		$	2.07
Weighted average remaining recognition period in years		2.9
Unamortized stock-based compensation expense	$	540

Stock-based compensation expense 

The following tables present the Company’s stock-based compensation expense, which is related primarily to options and is a non-cash expense, in the consolidated statements of operations: 

	Three Months Ended September 30,
(in thousands)	2023		2022 (As Adjusted)
Cost of sales	$	228	$	506
General and administrative		845		1,775
Salaries and related benefits		3,510		3,586
Total stock-based compensation		4,583		5,867
Income tax benefit (1)		425		-
After-tax stock-based compensation expense	$	4,158	$	5,867

	Nine Months Ended September 30,
(in thousands)	2023		2022 (As Adjusted)
Cost of sales	$	961	$	2,014
General and administrative		3,956		7,344
Salaries and related benefits		10,532		11,156
Total stock-based compensation		15,449		20,514
Income tax benefit (1)		574		1,735
After-tax stock-based compensation expense	$	14,875	$	18,779

(1) Amounts exclude impact from any stock-based compensation expense subject to Section 162(m) of the Internal Revenue Code, which is nondeductible for income tax purposes. 

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Note 15 - Commitments, Contingencies and Concentration Risk

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 15. Commitments, contingencies and concentration risk

Contingencies

During the normal course of business, the Company may be exposed to litigation. When the Company becomes aware of potential litigation, it evaluates the merits of the case in accordance with ASC 450, Contingencies. Litigation and contingency accruals are based on the Company’s assessment, including advice of legal counsel, regarding the expected outcome of litigation or other dispute resolution proceedings. If the Company determines that an unfavorable outcome is probable and can be reasonably assessed, it establishes the necessary accruals. As of September 30, 2023, and December 31, 2022, the Company is not aware of any contingent liabilities that should be reflected in the consolidated financial statements.

Other Commitments

Indemnities

The Company generally indemnifies its customers for the services it provides under its contracts, as well as other specified liabilities, which may subject the Company to indemnity claims, liabilities and related litigation. As of September 30, 2023, and December 31, 2022, the Company was not aware of any material asserted or unasserted claims in connection with these indemnity obligations.

Performance and Payment Bonds

Many customers, particularly in connection with new construction within Infrastructure, require the Company to post performance and payment bonds issued by a financial institution known as a surety. If the Company fails to perform under the terms of a contract or to pay subcontractors and vendors who provided goods or services under a contract, the customer may demand that the surety make payments or provide services under the bond. The Company must reimburse the surety for any expenses or outlays it incurs. To date, the Company is not aware of any losses to their sureties in connection with bonds the sureties have posted on their behalf, and do not expect such losses to be incurred in the foreseeable future. Generally, 10% of bonding needs are held in cash on the balance sheet.

Concentration of Credit Risk

The Company maintains accounts with financial institutions. All cash in checking accounts is fully insured by the FDIC up to a $250,000 limit. At times, cash balances may exceed the maximum coverage provided by the FDIC on insured depositor accounts. The Company believes it mitigates its risk by depositing its cash and cash equivalents with major financial institutions.

Major Customer Concentration

There was one customer whose individual accounts receivable represented 10% or more of the Company’s total balance as of September 30, 2023. The Company had three customers whose accounts receivable individually represented 10% or more of the Company’s total balance as of December 31, 2022. In aggregate these customers accounted for approximately 46% of the Company’s total accounts receivable as of December 31, 2022.

The Company has two customers whose revenue individually represented 10% or more of the Company’s total revenue and whose revenue accounted for approximately 35% of the Company’s total revenue for the three months ended September 30, 2023. The Company has one customer whose revenue represented 10% or more of the Company’s total revenue, which accounted for 14% of the Company’s total revenue for the nine months ended September 30, 2023. The Company had two customers whose revenue individually represented 10% or more of the Company’s total revenue and, in aggregate, accounted for approximately 32% and 29% of the Company’s total revenue for the three and nine months ended September 30, 2022, respectively.

Labor Concentration

One of our operating subsidiaries within Infrastructure sources direct labor from local unions, which have collective bargaining agreements expiring at various times over the next four years. Although the Company’s past experience has been favorable with respect to resolving conflicting demands with these unions, it is possible that contract negotiations are unsuccessful which could impact the renewal of the collective bargaining agreements and availability of personnel.

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Note 16 - Income Taxes

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Income Tax Disclosure [Text Block]

Note 16. Income taxes

The following table includes the Company’s income (loss) before income tax provision benefit (expense), income tax provision (benefit) and effective benefit tax rate for the periods indicated:

	Three Months Ended September 30,
	2023			2022 (As Adjusted)
Income (loss) before income taxes	$	(6,210	)	$	16,173
Income tax benefit (expense)		(741	)		8
Effective tax rate		(11.9	)%		(0.0	)%

	Nine Months Ended September 30,
	2023			2022 (As Adjusted)
Income (loss) before income taxes	$	(23,916	)	$	(12,341	)
Income tax benefit (expense)		(1,093	)		1,336
Effective tax rate		(4.6	)%		10.8	%

For the three and nine months ended September 30, 2023, and 2022, the Company utilized the discrete effective tax rate method. This discrete method treats the year-to-date period as if it was the annual period and calculates the income tax expense or benefit on a discrete basis. Currently, the Company believes the use of the discrete method represents the best estimate of its annual effective tax rate. The Company’s effective tax rate differed from the statutory rate primarily due to the valuation allowance on deferred tax assets, as well as the Company’s permanent book-tax differences from stock-based compensation and state income taxes net of federal benefit.

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Note 17 - Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 17. Net income (loss) per share

Basic income (loss) per share available to common stockholders is calculated using the weighted average number of common shares outstanding during the applicable period. Diluted net income (loss) per share available to common stockholders is calculated using the weighted average number of common shares outstanding plus the number of dilutive potential common shares outstanding during the applicable period. Dilutive potential common shares consist of the incremental common shares (i) issuable upon the vesting of outstanding restricted stock units and the exercise of outstanding stock options using the treasury stock method, (ii) contingently issuable assuming that the end of the reporting period is the end of the contingency period, and (iii) issuable for non-participating preferred stock using the if-converted method. Our warrants and some of our preferred stock are considered participating securities pursuant to the two-class method. Dilutive potential common shares are excluded from the calculation of diluted net income (loss) per share available to common stockholders if their effect is antidilutive.

The following potential common shares were excluded from the calculation of diluted net income (loss) per share available to common stockholders because their effect would have been antidilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Restricted stock units		325		-		368		154
Contingently issuable shares		-		-		493		1,685
Warrants		10,303		-		12,725		16,878
Stock options		51,755		25,122		51,478		48,906
Preferred stock		38,852		-		37,856		16,951
Convertible notes payable		-		-		-		33,250
Total		101,235		25,122		102,920		117,824

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Note 18 - Subsequent Events

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Subsequent Events [Text Block]

Note 18. Subsequent Events

Events occurring after September 30, 2023, and through the date that these consolidated financial statements were issued, were evaluated to ensure that any subsequent events that met the criteria for recognition have been included.

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2023

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The interim unaudited consolidated financial statements included herein have been prepared by the Company in accordance with: (i) generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information; and (ii) the instructions of the Securities and Exchange Commission (the “SEC”) for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. In the opinion of management, the consolidated financial statements reflect all adjustments considered necessary for a fair statement of the results of operations and financial position for the interim periods presented. All such adjustments are of a normal and recurring nature. The Company’s results shown on an interim basis are not necessarily indicative of results for a full year.

This Form 10-Q should be read in conjunction with the current report on Form 8-K filed with the SEC on May 10, 2023 (the “May 10, 2023 Form 8-K”) and the consolidated financial statements and related notes included in the Company’s audited consolidated financial statements as of and for the year ended December 31, 2022, and filed with the SEC on March 15, 2023, as part of the Company’s Annual Report on Form 10-K (the "2022 Annual Report"). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations.

There have been no material changes from Note 2, Summary of significant accounting policies, as described in the notes to the Company’s consolidated financial statements contained in the May 10, 2023 Form 8-K and the 2022 Annual Report, other than as noted below.

The Company is an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and the Company has and intends to continue to take advantage of certain exemptions from various reporting requirements.

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The consolidated financial statements and related disclosures, presented in U.S. dollars, have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC. The results and trends in these consolidated financial statements may not be representative for any future periods or the full year.

Revenue from Contract with Customer [Policy Text Block]

Revenue

Nature of Services

Infrastructure

The Company’s Infrastructure segment revenues are derived from: (i) broadband and wireless; (ii) electrical contracting services; (iii) electric vehicle charging infrastructure; and (iv) fleet services.

Broadband and wireless, electrical contracting, and electric vehicle charging infrastructure primarily involve design, engineering and construction services. Types of services typically include providing: (i) end-to-end network design and implementation services for telecommunication and wireless carriers, cable companies and enterprise organizations; (ii) cell tower construction and modification services for national and regional wireless service providers, tower owners, and federal, state, and local government agencies; (iii) cellular distributed antenna systems (“DAS”) and bi-directional antenna (“BDA”) public safety systems from initial Radio Frequency (“RF”) site assessment, through design, engineering, implementation, and testing; (iv) DAS maintenance and monitoring service, including an in-house 24 hour network operations center, utilizing Software-as-a-Service cloud-based software and customized maintenance program; (v) scalable and energy-efficient mission critical power systems to meet the demand of data equipment deployment for mission critical data centers; (vi) electrical and telecommunications construction and facilities services to commercial, industrial, and institutional facilities; and (vii) end-to-end solutions for safe, reliable, flexible and scalable charging ecosystems.

Projects can be performed under individual contracts or a statement of work under a master service agreement, which are generally multi-year agreements. The typical length of projects can vary and depends on size and complexity: broadband and wireless – two to three months; electrical contracting services – six months to three years; electric vehicle charging infrastructure – three to twelve months. 

The types of services for fleet services primarily involve leasing and maintenance of real property to commercial and fleet operator customers in return for payment. Lease agreements include fixed payments and vary in length from 12 months to 3 years.    

Telecommunications

The Company’s Telecommunications segment revenues are derived from operating a global telecommunication network consisting of domestic switching and related peripheral equipment, carrier-grade routers, and switches for internet and circuit-based services. Types of services typically include providing: (i) routing of voice, data, and SMS to Carriers and Mobile Network Operators (“MNO”) globally; and (ii) customers with internet-protocol-based and time-division multiplexing (“TDM”) access for the transport of long-distance voice and data minutes.

The Company’s Telecommunications segment operates an extensive network of direct routes and offers premium voice communication services for carrying a mix of business, residential and carrier long-distance traffic, data and transit traffic. Telecommunications has both a customer and vendor relationship with most parties. Telecommunications provides the customer routing services through the Telecommunications supplier routes on incoming calls and then Telecommunications purchases routing services from other vendor’s supplier routes in order to complete the call.

Revenue Recognition

Revenue is recognized when a customer obtains control of promised services. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those services. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised services in the contract; (ii) determination of whether the promised services are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation. The Company’s primary revenue stream is from services. The Company recognizes as revenues the amount of the transaction price for the performance obligation when the performance obligation is satisfied or as it is satisfied.

The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer, in an amount that reflects the consideration it expects to be entitled to in exchange for those products or services. The Company evaluates when it is appropriate to recognize revenues based on the gross amount invoiced to the customer or the net amount retained by the Company if a third party is involved.

A contract liability for deferred revenue is recorded when consideration is received or is unconditionally due from a customer prior to transferring control of goods or services to the customer under the terms of a contract. Deferred revenue balances typically result from advance payments received from customers for contracts or from billings in excess of revenue recognized on services arrangements.

Contract assets represent when revenues are recognized in advance of invoice issuance. These assets are presented separately on the consolidated balance sheet and are converted to accounts receivable once the Company’s right to the consideration becomes unconditional, which varies by contract but is generally based on achieving certain acceptance milestones. The Company recognizes the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset would be one year or less.

Infrastructure

Broadband and wireless, electrical contracting services, and electric vehicle charging projects often require significant services to integrate complex activities and equipment into a single deliverable and are therefore generally accounted for as a single performance obligation, even when delivering multiple services that are capable of being distinct. Contract amendments and change orders, which are generally not distinct from the existing contract, are typically accounted for as a modification of the existing contract and performance obligation.

The Company recognizes revenues from these services over time using an input method, based on assessment of performance completed to date. The Company uses the percentage of completion method when it measures its progress towards completion of the performance obligation based on the ratio of costs incurred to date to total estimated costs at completion under the contract. The Company believes that this approach faithfully depicts the Company’s performance toward complete satisfaction of the performance obligation as it accurately measures the transfer of control of the finished product to the customer. 

Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is complex, subject to many variables and requires significant judgment. Management must make assumptions and estimates regarding labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, the performance of subcontracts, and the availability and timing of funding from the customer, among other variables. As a significant change in one or more of these estimates could affect the profitability of contracts, the Company updates contract-related estimates regularly through a review process in which management evaluates the progress and execution of each performance obligation and the estimated cost at completion. As part of this process, management reviews information including, but not limited to, any outstanding key contract matter, progress towards completion and the related program schedule and the related changes in estimates of revenues and costs. The Company recognizes adjustments in estimated profit on contracts on a cumulative catch-up basis. Therefore, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, the Company recognizes a provision for the entire loss in the period it is identified.

The nature of the Company’s contracts gives rise to several types of variable consideration, including claims and unpriced change orders. The Company includes variable consideration in the estimated transaction price when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of variable consideration to be included in the transaction price, using the expected value or the most likely amount method, which is expected to better predict the amount. The Company’s estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on assessments of legal enforceability, performance, and all information that is reasonably available to the Company.

Fleet services include a single deliverable of leased parking spaces. The Company recognizes revenues from these services evenly over the life of the contracts.

Telecommunications

The amount of consideration the Company receives and revenue it recognizes is fixed based upon contractually agreed upon rates. The Company recognizes revenue at a point in time when the voice, data and SMS are routed, and the performance obligation is satisfied.

Revenue is earned based on the number of minutes during a call multiplied by the price per minute and is recorded upon completion of a call. Incomplete calls are not revenues earned by Telecommunications and may occur as a result of technical issues or because the customer’s credit limit was exceeded and thus the customer routing of traffic was prevented. Telecommunications evaluates gross versus net revenue recognition for each of its contractual arrangements by assessing indicators of control to determine whether Telecommunications acts as a principal (i.e., gross recognition) or an agent (i.e., net recognition). Telecommunications has determined that it acts as a principal for all of its performance obligations as Telecommunications may accept or reject calls, determines the routing decision and routing vendor and has the risk of financial loss on revenues from customers and amounts owed to the vendors. Net revenue represents gross revenue, net of allowance for doubtful accounts receivable, service credits and service adjustments. Cost of sales includes network costs that consist of access, transport and termination costs. The majority of Telecommunications’ cost of sales is variable, primarily based upon minutes of use, with transmission and termination costs being the most significant expense.

Refer to Note 4, Revenue, for additional information on the Company’s revenue.

Cost of Goods and Service [Policy Text Block]

Cost of Sales

Cost of sales consists primarily of network telecommunication costs, contracted services, salaries and related employee benefits, including stock-based compensation, material and equipment costs, travel and other costs related to vehicles, training and lease expense.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires entities to use a forward-looking approach based on current expected credit losses (“CECL”) to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The Company implemented ASU 2016-13 on January 1, 2023. The impact of adopting this new guidance was not material.  

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations - Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 is designed to enhance comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. ASU 2021-08 was effective for the Company beginning January 1, 2023, under a prospective application. ASU 2021-08 requires the Company to measure contract assets and contract liabilities acquired in a business combination at the acquisition date in accordance with Accounting Standards Codification ("ASC") Topic 606 as if the Company had originated the contracts. The Company recorded contract assets and contract liabilities acquired in an acquisition in the current year at their respective acquisition date fair values as if it had originated the contracts. Refer to Note 6, Business combination, for additional information. 

In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). ASU 2020-06 will simplify the accounting for convertible instruments by reducing the number of accounting models for convertible debt instruments and convertible preferred stock. Limiting the accounting models will result in fewer embedded conversion features being separately recognized from the host contract as compared with current U.S. GAAP. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. ASU 2020-06 also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity to reduce form-over-substance-based accounting conclusions. ASU 2020-06 will be effective for the Company as of January 1, 2024. Early adoption is permitted. Management is currently evaluating the effect of the adoption of ASU 2020-06 on the consolidated financial statements, but currently does not believe ASU 2020-06 will have a significant impact on the Company’s financial statements because it no longer has convertible debt outstanding. The Company will continue to monitor relevant accounting pronouncements.

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassification 

Certain amounts included in the prior year financial statements and disclosures have been reclassified to conform to the current year presentation. These reclassifications did not have a material impact on the Company’s previously reported financial statements. 

Change in Accounting Principle 

Effective January 1, 2023, the Company changed its accounting principle for recognizing stock-based compensation expense from the graded vesting attribution method, where an award is divided into vesting increments or tranches, to the straight-line attribution method of accounting. The Company believes the straight-line attribution method more accurately reflects how awards are earned over its employees’ service periods. Also, it is the predominant method used in its industry, and therefore it better aligns the Company’s recognition of stock-based compensation expense with its peers. 

The retrospective application of the change in accounting principle had an effect on the consolidated balance sheets, consolidated statements of operations, consolidated statements of comprehensive income (loss) and consolidated statements of stockholders’ equity. There was no net effect to the amounts reported for net cash provided by (used in) operating, investing or financing activities in the consolidated statements of cash flows for prior periods as a result of the change in accounting method. However, the net loss, change in deferred income taxes and stock-based compensation line items within net cash flows provided by operating activities each decreased as shown below to reflect the change in accounting method. 

The following tables present the comparative effect of the change in accounting principle and its effect on the Company’s current and previously reported financial statements. 

	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
	(amounts, in thousands, except per share data)
Stock-based compensation
Prior to revision	$	3,339		$	7,848		$	8,890		$	28,353
Revision		1,244			(1,981	)		6,559			(7,839	)
As revised	$	4,583		$	5,867		$	15,449		$	20,514
Loss from operations
Prior to revision	$	(5,117	)	$	(9,974	)	$	(17,901	)	$	(35,226	)
Revision		(1,244	)		1,981			(6,559	)		7,839
As revised	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income tax benefit (expense)
Prior to revision	$	(741	)	$	183		$	(1,093	)	$	1,772
Revision		-			(175	)		-			(436	)
As revised	$	(741	)	$	8		$	(1,093	)	$	1,336
Net income (loss)
Prior to revision	$	(5,707	)	$	14,375		$	(18,450	)	$	(18,408	)
Revision		(1,244	)		1,806			(6,559	)		7,403
As revised	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)
Basic income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.06		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.07		$	(0.14	)	$	(0.25	)
Diluted income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.05		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.06		$	(0.14	)	$	(0.25	)

The opening balances of accumulated deficit and additional paid in capital as of December 31, 2021, have been adjusted by $8.0 million and $9.1 million, respectively to reflect the cumulative effect of the change.

	As of
	September 30,			December 31,
	2023			2022
	(amounts, in thousands)
Net deferred tax (liability) asset
Prior to revision	$	(1,047	)	$	(1,389	)
Revision		(25	)		(21	)
As revised	$	(1,072	)	$	(1,410	)
Additional paid in capital
Prior to revision	$	220,083		$	197,816
Revision		(11,519	)		(18,093	)
As revised	$	208,564		$	179,723
Accumulated deficit
Prior to revision	$	(195,969	)	$	(173,586	)
Revision		11,494			18,072
As revised	$	(184,475	)	$	(155,514	)
Total stockholders' equity
Prior to revision	$	24,135		$	24,250
Revision		(25	)		(21	)
As revised	$	24,110		$	24,229

Stock-based compensation correction of immaterial error 

In 2023, the Company identified a misstatement related to its presentation of stock-based compensation in its consolidated statements of operations. Although determined to be immaterial, the Company elected to correct the immaterial misstatement and reclassified its stock-based compensation expense to the same financial statement line item as cash compensation paid to the same employees and nonemployees.

The reclassification reflects the change in accounting principle discussed above and had no incremental impact on the consolidated balance sheets, consolidated statements of comprehensive income (loss), consolidated statements of stockholders’ equity, or consolidated statement of cash flows. There was no net effect to the amounts reported for (loss) from operations as a result of this reclassification. However, cost of sales, gross profit, stock-based compensation, general and administrative, salaries and related benefits, and total operating expenses each were adjusted as shown below to reflect the reclassification. 

The following tables present the effect of the reclassification on the Company’s previously reported financial statements. 

	Year Ended
	December 31,
	2022			2021			2020
	(amounts, in thousands)
Cost of sales
Prior to revision	$	669,620		$	465,503		$	83,554
Revision		2,503			1,771			-
As revised	$	672,123		$	467,274		$	83,554
Gross Profit
Prior to revision	$	28,213		$	11,515		$	1,172
Revision		(2,503	)		(1,771	)		-
As revised	$	25,710		$	9,744		$	1,172
Stock-based compensation
Prior to revision	$	26,499		$	21,801		$	2,005
Revision		(26,499	)		(21,801	)		(2,005	)
As revised	$	-		$	-		$	-
General and administrative
Prior to revision	$	14,392		$	7,995		$	2,020
Revision		9,117			11,011			121
Other Reclassifications		(677	)		-			-
As revised	$	22,832		$	19,006		$	2,141
Salaries and related benefits
Prior to revision	$	16,667		$	8,806		$	687
Revision		14,879			9,019			1,884
Other Reclassifications		657			-			-
As revised	$	32,203		$	17,825		$	2,571
Total operating expenses
Prior to revision	$	67,225		$	40,977		$	5,922
Revision		(2,503	)		(1,771	)		-
Other Reclassifications		(20	)		-			-
As revised	$	64,702		$	39,206		$	5,922

	Three Months Ended
	March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022
	(amounts, in thousands)
Cost of sales
Prior to revision	$	156,812		$	173,760		$	178,951		$	160,097
Revision		804			704			506			489
Other Reclassifications		-			303			303			(606	)
As revised	$	157,616		$	174,767		$	179,760		$	159,980
Gross Profit
Prior to revision	$	6,166		$	7,281		$	6,906		$	7,860
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		606
As revised	$	5,362		$	6,274		$	6,097		$	7,977
Stock-based compensation
Prior to revision	$	7,424		$	7,223		$	5,867		$	5,985
Revision		(7,424	)		(7,223	)		(5,867	)		(5,985	)
As revised	$	-		$	-		$	-		$	-
General and administrative
Prior to revision	$	2,742		$	3,908		$	3,516		$	4,226
Revision		2,865			2,704			1,775			1,773
Other Reclassifications		-			(160	)		(150	)		(367	)
As revised	$	5,607		$	6,452		$	5,141		$	5,632
Salaries and related benefits
Prior to revision	$	4,193		$	4,127		$	4,417		$	3,930
Revision		3,755			3,815			3,586			3,723
Other Reclassifications		-			(143	)		(153	)		953
As revised	$	7,948		$	7,799		$	7,850		$	8,606
Total operating expenses
Prior to revision	$	15,632		$	17,209		$	14,899		$	19,485
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		586
As revised	$	14,828		$	16,202		$	14,090		$	19,582

	Three Months Ended
	March 31, 2023
	(amounts, in thousands)
Cost of sales
Prior to revision	$	186,828
Revision		432
As revised	$	187,260
Gross Profit
Prior to revision	$	6,721
Revision		(432	)
As revised	$	6,289
Stock-based compensation
Prior to revision	$	5,902
Revision		(5,902	)
As revised	$	-
General and administrative
Prior to revision	$	3,345
Revision		1,760
As revised	$	5,105
Salaries and related benefits
Prior to revision	$	5,418
Revision		3,710
As revised	$	9,128
Total operating expenses
Prior to revision	$	16,341
Revision		(432	)
As revised	$	15,909

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Note 2 - Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Accounting Standards Update and Change in Accounting Principle [Table Text Block]

	Three Months Ended						Nine Months Ended
	September 30, 2023			September 30, 2022			September 30, 2023			September 30, 2022
	(amounts, in thousands, except per share data)
Stock-based compensation
Prior to revision	$	3,339		$	7,848		$	8,890		$	28,353
Revision		1,244			(1,981	)		6,559			(7,839	)
As revised	$	4,583		$	5,867		$	15,449		$	20,514
Loss from operations
Prior to revision	$	(5,117	)	$	(9,974	)	$	(17,901	)	$	(35,226	)
Revision		(1,244	)		1,981			(6,559	)		7,839
As revised	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income tax benefit (expense)
Prior to revision	$	(741	)	$	183		$	(1,093	)	$	1,772
Revision		-			(175	)		-			(436	)
As revised	$	(741	)	$	8		$	(1,093	)	$	1,336
Net income (loss)
Prior to revision	$	(5,707	)	$	14,375		$	(18,450	)	$	(18,408	)
Revision		(1,244	)		1,806			(6,559	)		7,403
As revised	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)
Basic income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.06		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.07		$	(0.14	)	$	(0.25	)
Diluted income (loss) per share available to common stockholders
Prior to revision	$	(0.04	)	$	0.05		$	(0.11	)	$	(0.29	)
Revision	$	(0.01	)	$	0.01		$	(0.03	)	$	0.04
As revised	$	(0.05	)	$	0.06		$	(0.14	)	$	(0.25	)

	As of
	September 30,			December 31,
	2023			2022
	(amounts, in thousands)
Net deferred tax (liability) asset
Prior to revision	$	(1,047	)	$	(1,389	)
Revision		(25	)		(21	)
As revised	$	(1,072	)	$	(1,410	)
Additional paid in capital
Prior to revision	$	220,083		$	197,816
Revision		(11,519	)		(18,093	)
As revised	$	208,564		$	179,723
Accumulated deficit
Prior to revision	$	(195,969	)	$	(173,586	)
Revision		11,494			18,072
As revised	$	(184,475	)	$	(155,514	)
Total stockholders' equity
Prior to revision	$	24,135		$	24,250
Revision		(25	)		(21	)
As revised	$	24,110		$	24,229

	Year Ended
	December 31,
	2022			2021			2020
	(amounts, in thousands)
Cost of sales
Prior to revision	$	669,620		$	465,503		$	83,554
Revision		2,503			1,771			-
As revised	$	672,123		$	467,274		$	83,554
Gross Profit
Prior to revision	$	28,213		$	11,515		$	1,172
Revision		(2,503	)		(1,771	)		-
As revised	$	25,710		$	9,744		$	1,172
Stock-based compensation
Prior to revision	$	26,499		$	21,801		$	2,005
Revision		(26,499	)		(21,801	)		(2,005	)
As revised	$	-		$	-		$	-
General and administrative
Prior to revision	$	14,392		$	7,995		$	2,020
Revision		9,117			11,011			121
Other Reclassifications		(677	)		-			-
As revised	$	22,832		$	19,006		$	2,141
Salaries and related benefits
Prior to revision	$	16,667		$	8,806		$	687
Revision		14,879			9,019			1,884
Other Reclassifications		657			-			-
As revised	$	32,203		$	17,825		$	2,571
Total operating expenses
Prior to revision	$	67,225		$	40,977		$	5,922
Revision		(2,503	)		(1,771	)		-
Other Reclassifications		(20	)		-			-
As revised	$	64,702		$	39,206		$	5,922

	Three Months Ended
	March 31, 2022			June 30, 2022			September 30, 2022			December 31, 2022
	(amounts, in thousands)
Cost of sales
Prior to revision	$	156,812		$	173,760		$	178,951		$	160,097
Revision		804			704			506			489
Other Reclassifications		-			303			303			(606	)
As revised	$	157,616		$	174,767		$	179,760		$	159,980
Gross Profit
Prior to revision	$	6,166		$	7,281		$	6,906		$	7,860
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		606
As revised	$	5,362		$	6,274		$	6,097		$	7,977
Stock-based compensation
Prior to revision	$	7,424		$	7,223		$	5,867		$	5,985
Revision		(7,424	)		(7,223	)		(5,867	)		(5,985	)
As revised	$	-		$	-		$	-		$	-
General and administrative
Prior to revision	$	2,742		$	3,908		$	3,516		$	4,226
Revision		2,865			2,704			1,775			1,773
Other Reclassifications		-			(160	)		(150	)		(367	)
As revised	$	5,607		$	6,452		$	5,141		$	5,632
Salaries and related benefits
Prior to revision	$	4,193		$	4,127		$	4,417		$	3,930
Revision		3,755			3,815			3,586			3,723
Other Reclassifications		-			(143	)		(153	)		953
As revised	$	7,948		$	7,799		$	7,850		$	8,606
Total operating expenses
Prior to revision	$	15,632		$	17,209		$	14,899		$	19,485
Revision		(804	)		(704	)		(506	)		(489	)
Other Reclassifications		-			(303	)		(303	)		586
As revised	$	14,828		$	16,202		$	14,090		$	19,582

	Three Months Ended
	March 31, 2023
	(amounts, in thousands)
Cost of sales
Prior to revision	$	186,828
Revision		432
As revised	$	187,260
Gross Profit
Prior to revision	$	6,721
Revision		(432	)
As revised	$	6,289
Stock-based compensation
Prior to revision	$	5,902
Revision		(5,902	)
As revised	$	-
General and administrative
Prior to revision	$	3,345
Revision		1,760
As revised	$	5,105
Salaries and related benefits
Prior to revision	$	5,418
Revision		3,710
As revised	$	9,128
Total operating expenses
Prior to revision	$	16,341
Revision		(432	)
As revised	$	15,909

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Note 3 - Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	September 30, 2023
(in thousands)	Level 1		Level 2		Level 3		Measured at Net Asset Value as a Practical Expedient		Total
Assets:
Marketable securities (Note 5)	$	4,280	$	-	$	-	$	1,588	$	5,868
Liabilities:
Contingent consideration liability (Note 6)	$	-	$	-	$	5,758	$	-	$	5,758
Derivative liabilities (Note 10)	$	-	$	2	$	-	$	-	$	2

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Note 4 - Revenue (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block]

(in thousands)	September 30, 2023		December 31, 2022
Receivables included in "Accounts receivable net of allowances"	$	55,710	$	72,405
Contract assets		8,128		6,090
Contract liabilities		25,201		13,741

(in thousands)
Balance at December 31, 2022	$	13,741
Revenue recognized during the period that was included in the beginning balance		(12,945	)
Additions, net of revenue recognized during the period		24,405
Balance at September 30, 2023	$	25,201

Disaggregation of Revenue [Table Text Block]

	Three Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Infrastructure	$	31,795	$	26,753
Telecommunications		100,482		159,104
Total	$	132,277	$	185,857

	Nine Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Infrastructure	$	89,246	$	71,804
Telecommunications		384,166		458,072
Total	$	473,412	$	529,876

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Note 5 - Marketable Securities and Other Investments (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Marketable Securities [Table Text Block]

(in thousands)	September 30, 2023		December 31, 2022
Brokerage Account	$	5,868	$	6,757

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Note 6- Business Combination (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

(in thousands)	Preliminary Estimates
Cash	$	5,289
Common stock		2,000
Contingent consideration		5,758
Total Consideration	$	13,047
Fair values of identifiable net assets and liabilities:
Assets:
Current assets
Cash		1,845
Accounts receivable		1,315
Deposits, prepaids and other current assets		9
Inventory		205
Contract assets		744
Total current assets		4,118
Property, plant and equipment		212
Operating lease right-of-use assets		259
Goodwill		13,234
Total assets		17,823
Liabilities:
Current liabilities
Accounts payable		542
Accrued liabilities		77
Contract liabilities		3,741
Operating lease liabilities		54
Finance lease liabilities		50
Total current liabilities		4,464
Non-current liabilities
Operating lease liabilities, non-current		214
Finance lease liabilities, non-current		98
Total liabilities		4,776
Total fair value of identifiable net assets and liabilities	$	13,047

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Note 7 - Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Goodwill [Table Text Block]

(in thousands)	Infrastructure		Telecommunications		Consolidated Total
Goodwill, net, as of December 31, 2022	$	11,900	$	772	$	12,672
Acquisition (See Note 6)	$	13,234	$	-	$	13,234
Goodwill, net, as of September 30, 2023	$	25,134	$	772	$	25,906

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	September 30, 2023							December 31, 2022
(in thousands)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	30,849	$	(4,031	)	$	26,818	$	30,849	$	(2,489	)	$	28,360
Backlog		3,322		(1,938	)		1,384		3,322		(1,107	)		2,215
Non-compete agreements		3,729		(1,594	)		2,135		3,729		(895	)		2,834
Off-market favorable leases		955		(955	)		-		955		(955	)		-
Brand		560		(65	)		495		560		(37	)		523
Total	$	39,415	$	(8,583	)	$	30,832	$	39,415	$	(5,483	)	$	33,932

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Note 9 - Debt (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Debt [Table Text Block]

(in thousands)	September 30, 2023			December 31, 2022
Line of Credit
ANS Line of Credit	$	-		$	5,024
Total Line of Credit		-			5,024
Notes Payable
Issued on May 19, 2021		11,860			11,860
Issued on December 17, 2021		15,926			15,926
Total Face Value of Notes Payable		27,786			27,786
Less: Unamortized Discount		(660	)		(3,630	)
Net Carrying Value of Notes Payable		27,126			24,156
Total debt before deferred financing costs		27,126			29,180
Current amount of Notes Payable		27,126			24,156
Current amount of Line of Credit		-			5,024
Total current portion of long-term debt		27,126			29,180
Total long-term debt, net of current portion	$	-		$	-

Interest Income and Interest Expense Disclosure [Table Text Block]

	Three Months Ended September 30,
(in thousands)	2023			2022
Interest expense	$	(499	)	$	(520	)
Amortization of debt discount		(990	)		(495	)
Total net interest expense	$	(1,489	)	$	(1,015	)

	Nine Months Ended September 30,
(in thousands)	2023			2022
Interest expense	$	(1,545	)	$	(2,001	)
Amortization of debt discount		(2,970	)		(7,938	)
Total net interest expense	$	(4,515	)	$	(9,939	)

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Note 10 - Derivative Liabilities (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

	Three Months Ended September 30,
(in thousands)	2023			2022
Derivative liability beginning balance	$	59		$	40,443
Change in fair value of derivative liabilities		(57	)		(28,669	)
Derivative liability ending balance	$	2		$	11,774

	Nine Months Ended September 30,
(in thousands)	2023			2022
Derivative liability beginning balance	$	6,521		$	-
Reclassification of derivative		-			40,443
Change in fair value of derivative liabilities		(1,713	)		(28,669	)
Warrant exercise		(4,806	)		-
Derivative liability ending balance	$	2		$	11,774

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Note 11 - Leases (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Summary of Components of Rental Revenue [Table Text Block]

	Three Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Fixed component	$	844	$	1,139
Variable component		-		-
Total	$	844	$	1,139

	Nine Months Ended September 30,
(in thousands)	2023		2022
Revenue:
Fixed component	$	2,577	$	3,549
Variable component		-		-
Total	$	2,577	$	3,549

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Note 12 - Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Income (loss) from operations:
Infrastructure	$	658		$	(1,152	)	$	(2,207	)	$	(4,294	)
Telecommunications		108			181			(29	)		806
Non-operating corporate		(7,127	)		(7,022	)		(22,224	)		(23,899	)
Total	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)

	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2023		2022		2023		2022
Depreciation and amortization:
Infrastructure	$	1,166	$	391	$	3,539	$	1,618
Telecommunications		6		42		35		127
Total	$	1,172	$	433	$	3,574	$	1,745

	Nine Months Ended September 30,
(in thousands)	2023		2022
Capital expenditures:
Infrastructure	$	143	$	205
Telecommunications		-		-
Total	$	143	$	205

(in thousands)	September 30, 2023		December 31, 2022
Investments:
Infrastructure	$	1,595	$	1,389
Telecommunications		-		-
Non-operating corporate		4,552		5,604
Total	$	6,147	$	6,993

(in thousands)	September 30, 2023		December 31, 2022 (As Adjusted)
Assets:
Infrastructure	$	114,628	$	102,248
Telecommunications		54,880		42,046
Non-operating corporate		18,009		24,160
Total	$	187,517	$	168,454

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Three Months Ended September 30,						Nine Months Ended September 30,
(in thousands)	2023			2022 (As Adjusted)			2023			2022 (As Adjusted)
Loss from operations	$	(6,361	)	$	(7,993	)	$	(24,460	)	$	(27,387	)
Income (loss) from investments, net		675			(200	)		1,637			(1,343	)
Change in fair value of derivative liabilities		57			28,669			1,713			28,669
Interest expense		(1,489	)		(1,015	)		(4,515	)		(9,939	)
Loss on impairment		(56	)		-			(114	)		-
Other income (expense), net		848			(3,289	)		1,876			(2,255	)
Foreign exchange gain (loss)		116			1			(53	)		(86	)
Total other expenses		151			24,166			544			15,046
Income (loss) before income taxes		(6,210	)		16,173			(23,916	)		(12,341	)
Income tax (expense) benefit		(741	)		8			(1,093	)		1,336
Net income (loss)	$	(6,951	)	$	16,181		$	(25,009	)	$	(11,005	)

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Note 13 - Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

	Number of Warrants			Weighted Average			Weighted Average Remaining Contractual Life
	(in thousands)			Exercise Price			(in years)
Warrants outstanding at January 1, 2022		24,085		$	1.74			3.0
Issued		2,000			8.50			2.8
Exercised		(8,183	)		(1.59	)		N/A
Expired		-			-			N/A
Warrants outstanding at December 31, 2022		17,902		$	2.56			1.8
Warrants exercisable at December 31, 2022		17,902		$	2.56			1.8
Issued		-			-
Exercised		(7,600	)		0.50			N/A
Expired		-			-			N/A
Warrants outstanding at September 30, 2023		10,302		$	4.08			2.1
Warrants exercisable at September 30, 2023		10,302		$	4.08			2.1

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Note 14 - Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Share-Based Payment Arrangement, Option, Activity [Table Text Block]

	Number of Shares (in thousands)			Weighted Average Exercise Price		Intrinsic Value (in thousands)		Weighted Average Remaining Contractual Term (in years)
Options outstanding at December 31, 2022		49,576		$	2.07		-		-
Options granted		7,480			1.04		-		-
Options exercised		(75	)		0.55		-		-
Options cancelled		(8,553	)		2.85		-		-
Options outstanding at September 30, 2023		48,428		$	1.77	$	122		4.79
Options exercisable at September 30, 2023		26,943		$	1.60	$	92		3.97
Vested and expected to vest at September 30, 2023		48,428		$	1.77	$	122		4.79

Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Nine Months Ended September 30,
Weighted risk-free interest rate 1		3.5	%
Weighted-average volatility 2		59	%
Weighted expected dividend yield 3		-	%
Weighted expected term (in years) 4		5.7

Share-Based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block]

	Number of			Weighted Average
	Shares (in thousands)			Grant Date Fair Value
RSUs outstanding at December 31, 2022		405		$	2.26
RSUs granted		40			0.92
RSUs released		(76	)		2.27
RSUs forfeited		(100	)		2.22
RSUs outstanding at September 30, 2023		269		$	2.07
Weighted average remaining recognition period in years		2.9
Unamortized stock-based compensation expense	$	540

Share-Based Payment Arrangement, Cost by Plan [Table Text Block]

	Three Months Ended September 30,
(in thousands)	2023		2022 (As Adjusted)
Cost of sales	$	228	$	506
General and administrative		845		1,775
Salaries and related benefits		3,510		3,586
Total stock-based compensation		4,583		5,867
Income tax benefit (1)		425		-
After-tax stock-based compensation expense	$	4,158	$	5,867

	Nine Months Ended September 30,
(in thousands)	2023		2022 (As Adjusted)
Cost of sales	$	961	$	2,014
General and administrative		3,956		7,344
Salaries and related benefits		10,532		11,156
Total stock-based compensation		15,449		20,514
Income tax benefit (1)		574		1,735
After-tax stock-based compensation expense	$	14,875	$	18,779

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Note 16 - Income Taxes (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Three Months Ended September 30,
	2023			2022 (As Adjusted)
Income (loss) before income taxes	$	(6,210	)	$	16,173
Income tax benefit (expense)		(741	)		8
Effective tax rate		(11.9	)%		(0.0	)%

	Nine Months Ended September 30,
	2023			2022 (As Adjusted)
Income (loss) before income taxes	$	(23,916	)	$	(12,341	)
Income tax benefit (expense)		(1,093	)		1,336
Effective tax rate		(4.6	)%		10.8	%

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Note 17 - Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2023

Notes Tables

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Restricted stock units		325		-		368		154
Contingently issuable shares		-		-		493		1,685
Warrants		10,303		-		12,725		16,878
Stock options		51,755		25,122		51,478		48,906
Preferred stock		38,852		-		37,856		16,951
Convertible notes payable		-		-		-		33,250
Total		101,235		25,122		102,920		117,824

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Note 1 - Nature of Operations (Details Textual)	9 Months Ended
	Sep. 30, 2023
Number of Operating Segments	2

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Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Retained Earnings (Accumulated Deficit)	$ (184,475)	$ (155,514)
Additional Paid in Capital	$ 208,564	$ 179,723
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings (Accumulated Deficit)			$ 8,000
Additional Paid in Capital			$ 9,100

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Note 2 - Summary of Significant Accounting Policies - Effect of Change in Accounting Principle (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended							9 Months Ended		12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Allocated stock-based compensation								$ 15,449	$ 20,514
Loss from operations	$ (6,361)							(24,460)
Income tax (expense) benefit	741				$ (8)			1,093	(1,336)
Net income (loss)	$ (6,951)	$ (8,846)	$ (9,212)		14,407	$ (19,642)	$ (13,141)	$ (25,009)	(11,005)
Basic income (loss) per share available to common stockholders (in dollars per share)	$ (0.05)							$ (0.14)
Diluted income (loss) per share available to common stockholders (in dollars per share)	$ (0.05)							$ (0.14)
Additional Paid in Capital	$ 208,564			$ 179,723				$ 208,564		$ 179,723
Retained Earnings (Accumulated Deficit)	(184,475)			(155,514)				(184,475)		(155,514)
Total stockholders' equity	24,110	$ 27,733	31,958	24,229	27,771	5,857	39,935	24,110	27,771	24,229	$ 14,348
Prior to revision	123,255							450,353
Prior to revision	9,022							23,059
Prior to revision	4,315							14,854
Prior to revision	15,383							47,519
Stock-based compensation	4,583				5,867			15,449	20,514
Previously Reported [Member]
Allocated stock-based compensation	3,339		5,902		7,848			8,890	28,353	26,499	21,801	$ 2,005
Loss from operations	(5,117)				(9,974)			(17,901)	(35,226)
Income tax (expense) benefit	(741)				183			(1,093)	1,772
Net income (loss)	$ (5,707)				$ 14,375			$ (18,450)	$ (18,408)
Basic income (loss) per share available to common stockholders (in dollars per share)	$ (0.04)				$ 0.06			$ (0.11)	$ (0.29)
Diluted income (loss) per share available to common stockholders (in dollars per share)	$ (0.04)				$ 0.05			$ (0.11)	$ (0.29)
Net deferred tax (liability) asset	$ (1,047)			(1,389)				$ (1,047)		(1,389)
Additional Paid in Capital	220,083			197,816				220,083		197,816
Retained Earnings (Accumulated Deficit)	(195,969)			(173,586)				(195,969)		(173,586)
Total stockholders' equity	24,135			24,250				24,135		24,250
Prior to revision			186,828	160,097	$ 178,951	173,760	156,812			669,620	465,503	83,554
Prior to revision			6,721	7,860	6,906	7,281	6,166			28,213	11,515	1,172
Prior to revision			3,345	4,226	3,516	3,908	2,742			14,392	7,995	2,020
Prior to revision			5,418	3,930	4,417	4,127	4,193			16,667	8,806	687
Prior to revision			16,341	19,485	14,899	17,209	15,632			67,225	40,977	5,922
Stock-based compensation				5,985	5,867	7,223	7,424
Revision of Prior Period, Adjustment [Member]
Allocated stock-based compensation	1,244		(5,902)		(1,981)			6,559	$ (7,839)	(26,499)	(21,801)	(2,005)
Loss from operations	(1,244)				1,981			(6,559)	7,839
Income tax (expense) benefit	0				(175)			0	(436)
Net income (loss)	$ (1,244)				$ 1,806			$ (6,559)	$ 7,403
Basic income (loss) per share available to common stockholders (in dollars per share)	$ (0.01)				$ 0.01			$ (0.03)	$ 0.04
Diluted income (loss) per share available to common stockholders (in dollars per share)	$ (0.01)				$ 0.01			$ (0.03)	$ 0.04
Net deferred tax (liability) asset	$ (25)			(21)				$ (25)		(21)
Additional Paid in Capital	(11,519)			(18,093)				(11,519)		(18,093)
Retained Earnings (Accumulated Deficit)	11,494			18,072				11,494		18,072
Total stockholders' equity	(25)			(21)				(25)		(21)
Prior to revision			432	489	$ 506	704	804			2,503	1,771	0
Prior to revision			(432)	(489)	(506)	(704)	(804)			(2,503)	(1,771)	0
Prior to revision			1,760	1,773	1,775	2,704	2,865			9,117	11,011	121
Prior to revision			3,710	3,723	3,586	3,815	3,755			14,879	9,019	1,884
Prior to revision			(432)	(489)	(506)	(704)	(804)			(2,503)	(1,771)	0
Stock-based compensation				(5,985)	(5,867)	(7,223)	(7,424)
As Revised [Member]
Allocated stock-based compensation	4,583		0		5,867			15,449	$ 20,514	0	0	0
Loss from operations	(6,361)				(7,993)			(24,460)	(27,387)
Income tax (expense) benefit	(741)				8			(1,093)	1,336
Net income (loss)	$ (6,951)				$ 16,181			$ (25,009)	$ (11,005)
Basic income (loss) per share available to common stockholders (in dollars per share)	$ (0.05)				$ 0.07			$ (0.14)	$ (0.25)
Diluted income (loss) per share available to common stockholders (in dollars per share)	$ (0.05)				$ 0.06			$ (0.14)	$ (0.25)
Net deferred tax (liability) asset	$ (1,072)			(1,410)				$ (1,072)		(1,410)
Additional Paid in Capital	208,564			179,723				208,564		179,723
Retained Earnings (Accumulated Deficit)	(184,475)			(155,514)				(184,475)		(155,514)
Total stockholders' equity	$ 24,110			24,229				$ 24,110		24,229
Prior to revision			187,260	159,980	$ 179,760	174,767	157,616			672,123	467,274	83,554
Prior to revision			6,289	7,977	6,097	6,274	5,362			25,710	9,744	1,172
Prior to revision			5,105	5,632	5,141	6,452	5,607			22,832	19,006	2,141
Prior to revision			9,128	8,606	7,850	7,799	7,948			32,203	17,825	2,571
Prior to revision			$ 15,909	19,582	14,090	16,202	14,828			64,702	39,206	5,922
Stock-based compensation				0	0	0	0
Other Reclassifications [Member]
Prior to revision				(606)	303	303	0
Prior to revision				606	(303)	(303)	0
Prior to revision				(367)	(150)	(160)	0			(677)	0	0
Prior to revision				953	(153)	(143)	0			657	0	0
Prior to revision				$ 586	$ (303)	$ (303)	$ 0			$ (20)	$ 0	$ 0

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Note 3 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022	Aug. 01, 2023
Non Marketable Securities	$ 300		$ 200
Non Marketable Securities, Increase (Decrease)		$ 0
EV Group Holdings LLC [Member]
Business Combination, Contingent Consideration, Liability			$ 3,500
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in shares)			1,530,145
Greenspeed Acquisition [Member]
Business Combination, Contingent Consideration, Liability	$ 5,800			$ 5,800

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Note 3 - Fair Value Measurements - Summary of Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Derivative liabilities (Note 10)	$ 2	$ 59	$ 6,521	$ 11,774	$ 40,443	$ 0
Fair Value, Recurring [Member]
Marketable securities (Note 5)	5,868
Contingent consideration liability (Note 6)	5,758
Derivative liabilities (Note 10)	2
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]
Marketable securities (Note 5)	4,280
Contingent consideration liability (Note 6)	0
Derivative liabilities (Note 10)	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]
Marketable securities (Note 5)	0
Contingent consideration liability (Note 6)	0
Derivative liabilities (Note 10)	2
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Marketable securities (Note 5)	0
Contingent consideration liability (Note 6)	5,758
Derivative liabilities (Note 10)	0
Fair Value Measured at Net Asset Value Per Share [Member] | Fair Value, Recurring [Member]
Marketable securities (Note 5)	1,588
Contingent consideration liability (Note 6)	0
Derivative liabilities (Note 10)	$ 0

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Note 4 - Revenue 1 (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Other Receivables	$ 100	$ 0
Revenue, Remaining Performance Obligation, Amount	139,200
Deferred Revenue	$ 25,200

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Note 4 - Revenue 2 (Details Textual)	Sep. 30, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01
Revenue, Remaining Performance Obligation, Percentage	25.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue, Remaining Performance Obligation, Percentage	74.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Percentage	1.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year

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Note 4 - Revenue - Contracts with Customers (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Receivables included in "Accounts receivable net of allowances"	$ 55,710	$ 72,405
Contract assets	8,128	6,090
Contract liabilities	25,201	$ 13,741
Balance	13,741
Revenue recognized during the period that was included in the beginning balance	(12,945)
Additions, net of revenue recognized during the period	24,405
Balance	$ 25,201

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Note 4 - Revenue - Revenues By Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue	$ 132,277	$ 185,857	$ 473,412	$ 529,876
Infrastructures [Member]
Revenue	31,795	26,753	89,246	71,804
Telecommunications [Member]
Revenue	$ 100,482	$ 159,104	$ 384,166	$ 458,072

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Note 5 - Marketable Securities and Other Investments (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Marketable Security, Gain (Loss)	$ 0.7	$ (0.2)	$ 1.6	$ (1.3)
Marketable Securities, Realized Gain (Loss)	0.2	(0.1)	0.1	(0.7)
Marketable Security, Unrealized Gain (Loss)	$ 0.5	$ (0.1)	$ 1.5	$ (0.6)

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Note 5 - Marketable Securities and Other Investments - Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Brokerage Account [Member]
Brokerage Account	$ 5,868	$ 6,757

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Note 6- Business Combination (Details Textual) - Greenspeed Acquisition [Member] - USD ($) $ in Thousands		9 Months Ended
	Aug. 01, 2023	Sep. 30, 2023	Sep. 30, 2022
Business Combination, Consideration Transferred	$ 13,047
Payments to Acquire Businesses, Gross	6,000	$ 5,289	$ (0)
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	2,000
Business Combination, Contingent Consideration, Liability	5,800	$ 5,800
Maximum [Member]
Business Combination, Consideration Transferred	15,000
Business Combination, Contingent Consideration, Liability	$ 7,000

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Note 6 - Business Combination - Schedule of Business Combinations (Details) - USD ($) $ in Thousands	Aug. 01, 2023	Sep. 30, 2023	Dec. 31, 2022
Goodwill		$ 25,906	$ 12,672
Greenspeed Acquisition [Member]
Cash	$ 5,289
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	2,000
Contingent consideration	5,758
Total Consideration	13,047
Cash	1,845
Accounts receivable	1,315
Deposits, prepaids and other current assets	9
Inventory	205
Contract assets	744
Total current assets	4,118
Property, plant and equipment	212
Operating lease right-of-use assets	259
Goodwill	13,234
Total assets	17,823
Accounts payable	542
Accrued liabilities	77
Contract liabilities	3,741
Operating lease liabilities	54
Finance lease liabilities	50
Total current liabilities	4,464
Operating lease liabilities, non-current	214
Finance lease liabilities, non-current	98
Total liabilities	4,776
Total fair value of identifiable net assets and liabilities	$ 13,047

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Note 7 - Goodwill and Intangible Assets - Goodwill by Reportable Segments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($)
Goodwill	$ 12,672
Goodwill	25,906
Infrastructure [Member]
Goodwill	11,900
Acquisition (See Note 6)	13,234
Goodwill	25,134
Telecommunications [Member]
Goodwill	772
Acquisition (See Note 6)	0
Goodwill	772
Aggregate Goodwill [Member]
Goodwill	12,672
Acquisition (See Note 6)	13,234
Goodwill	$ 25,906

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Note 7 - Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite Lived Intangible Assets, Gross	$ 39,415	$ 39,415
Finite Lived Intangible Assets, Accumulated Amortization	(8,583)	(5,483)
Finite Lived Intangible Assets, Net	30,832	33,932
Customer Relationships [Member]
Finite Lived Intangible Assets, Gross	30,849	30,849
Finite Lived Intangible Assets, Accumulated Amortization	(4,031)	(2,489)
Finite Lived Intangible Assets, Net	26,818	28,360
Backlog [Member]
Finite Lived Intangible Assets, Gross	3,322	3,322
Finite Lived Intangible Assets, Accumulated Amortization	(1,938)	(1,107)
Finite Lived Intangible Assets, Net	1,384	2,215
Noncompete Agreements [Member]
Finite Lived Intangible Assets, Gross	3,729	3,729
Finite Lived Intangible Assets, Accumulated Amortization	(1,594)	(895)
Finite Lived Intangible Assets, Net	2,135	2,834
Off-Market Favorable Lease [Member]
Finite Lived Intangible Assets, Gross	955	955
Finite Lived Intangible Assets, Accumulated Amortization	(955)	(955)
Finite Lived Intangible Assets, Net	0	0
Brand [Member]
Finite Lived Intangible Assets, Gross	560	560
Finite Lived Intangible Assets, Accumulated Amortization	(65)	(37)
Finite Lived Intangible Assets, Net	$ 495	$ 523

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Note 8 - Related Party Transactions (Details Textual) - USD ($)		9 Months Ended
	Aug. 31, 2023	Sep. 30, 2023	Sep. 30, 2022	Aug. 11, 2023
Cost Savings Agreement [Member] | Greenwave Partners, LLC [Member] | Greenspeed [Member]
Related Party Transaction, Amounts of Transaction		$ 200,000
Upfront Payment [Member] | Korr Acquisition Group Inc [Member]
Related Party Transaction, Amounts of Transaction			$ 500,000
Advisory Fee [Member] | Korr Acquisition Group Inc [Member]
Related Party Transaction, Amounts of Transaction			$ 25,000
August 2023 SPA [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)				1,000,000
Warrants and Rights Outstanding, Term (Year)				2 years
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)				$ 1.5
August 2023 SPA [Member]
Maximum Amount Shares Required to Sell				$ 5,000,000
Sale of Shares, Purchase Price (in dollars per share)				$ 1
Director [Member] | Separation and Consulting Agreement [Member]
Deferred Compensation Agreement, Initial Term (Year)	1 year
Deferred Compensation Liability, Current and Noncurrent	$ 500,000

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Note 9 - Debt (Details Textual)							3 Months Ended
	Dec. 01, 2023	Oct. 25, 2022 USD ($)	Dec. 17, 2021 USD ($)	May 19, 2021 USD ($) $ / shares shares	Nov. 03, 2020 USD ($) $ / shares shares	May 08, 2020 USD ($) shares	Jun. 30, 2022 shares	Sep. 30, 2023 USD ($)	Dec. 31, 2022 USD ($)	Nov. 18, 2022 USD ($)	Oct. 24, 2022 USD ($)	Dec. 31, 2020
Convertible Notes Payable								$ 0	$ 0
Revolving Credit Facility [Member] | Nextridge/ANS [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 8,000,000						$ 8,000,000			$ 4,000,000
Line of Credit Facility, Interest Rate at Period End								8.50%	7.50%
Long-Term Line of Credit								$ 0	$ 5,000,000
Debt Instrument, Interest Rate, Floor Rate		5.00%
Advances Limit, Percentage of Accounts Receivable		70.00%
Advances Limit, Percentage of Work in Process		50.00%
Debt Instrument, Minimum Debt Service Coverage Ratio		1.2
Maximum Debt/Tangible Net Worth Ratio		3
Equipment and Vehicle Line of Credit [Member] | Nextridge and ANS [Member]
Line of Credit Facility, Maximum Borrowing Capacity										$ 750,000
Long-Term Line of Credit								$ 0	$ 0
Equipment and Vehicle Line of Credit [Member] | Nextridge and ANS [Member] | Federal Home Loan Bank Rate [Member] | Forecast [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
The BW Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity										$ 3,000,000
Line of Credit Facility, Interest Rate at Period End								8.50%	7.50%
Long-Term Line of Credit								$ 0	$ 0
Advances Limit, Percentage of Accounts Receivable										75.00%
Net Retained Earning, Minimum Increase										$ 200,000
Maximum Debt to EBIDA										2
Series D Preferred Stock [Member] | Conversion of Convertible Notes to Preferred Stock [Member]
Debt Conversion, Converted Instrument, Shares Issued (in shares) | shares							1,177,023
May 2020 Investors [Member] | Series G Preferred Stock [Member]
Stock Issued During Period, Shares, New Issues (in shares) | shares						7.5
November 2020 Investors [Member]
Stock Issued During Period, Shares, New Issues (in shares) | shares					903,226
May 2020 Investors [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares						7,600,000
May 2021 Financing [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares				1,870,000
May 2020 Investors [Member]
Debt Instrument, Face Amount						$ 3,000,000
Proceeds from Issuance of Debt						$ 2,700,000
Debt Instrument, Interest Rate, Stated Percentage						8.00%						20.00%
November 2020 Investors [Member]
Debt Instrument, Face Amount					$ 3,900,000
Proceeds from Issuance of Debt					$ 3,500,000
Debt Instrument, Interest Rate, Stated Percentage					8.00%
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares					$ 0.25
May 2021 Financing [Member]
Debt Instrument, Face Amount				$ 5,600,000
Proceeds from Issuance of Debt				$ 5,000,000
Debt Instrument, Interest Rate, Stated Percentage				8.00%
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares				$ 3
Debt Instrument, Maturity Date				May 19, 2024
May 2021 Investors [Member]
Debt Instrument, Face Amount				$ 11,800,000
Proceeds from Issuance of Debt				$ 10,000,000
Debt Instrument, Coupon Rate				8.00%
Debt Instrument, Term (Month)				18 months
Debt Instrument, Debt Default, Interest Rate				20.00%
May 2021 Investors [Member] | Debt Premium [Member]
Debt Instrument, Interest Rate, Stated Percentage				7.50%
May 2021 Investors [Member] | Original Issue Discount [Member]
Debt Instrument, Interest Rate, Stated Percentage				10.00%
December 2021 Investors [Member]
Debt Instrument, Face Amount			$ 15,900,000
Proceeds from Issuance of Debt			$ 13,300,000
Debt Instrument, Coupon Rate			7.50%
Debt Instrument, Term (Month)			23 months
Debt Instrument, Debt Default, Interest Rate			20.00%
Debt Instrument, Maturity Date			Nov. 19, 2023

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Note 9 - Debt - Summary of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Total debt before deferred financing costs	$ 27,126	$ 29,180
Current amount of Notes Payable	27,126	24,156
Current amount of Line of Credit	0	5,024
Total current portion of long-term debt	27,126	29,180
Total long-term debt, net of current portion	0	0
Notes Payable, Other Payables [Member]
Longterm debt	27,786	27,786
Less: Unamortized Discount	(660)	(3,630)
Net Carrying Value of Notes Payable	27,126	24,156
Short Term Facility [Member]
Longterm debt	0	5,024
ANS Line of Credit [Member] | Short Term Facility [Member]
Longterm debt	0	5,024
Notes Issued on May 19, 2021 [Member] | Notes Payable, Other Payables [Member]
Longterm debt	11,860	11,860
Notes Issued on December 17, 2021 [Member] | Notes Payable, Other Payables [Member]
Longterm debt	$ 15,926	$ 15,926

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Note 9 - Debt - Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Amortization of debt discount			$ (2,970)	$ (7,938)
Interest expense	$ (1,489)		(4,515)
Notes Payable, Other Payables [Member]
Interest expense	(499)	$ (520)	(1,545)	(2,001)
Amortization of debt discount	(990)	(495)	(2,970)	(7,938)
Interest expense	$ (1,489)	$ (1,015)	$ (4,515)	$ (9,939)

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Note 10 - Derivative Liabilities (Details Textual) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Derivative Liability		$ 59	$ 2	$ 6,521	$ 11,774	$ 40,443	$ 0
Derivative Deemed Dividend						$ 32,800
Warrants and Rights Exercised (in shares)			7,600	8,183
May 2020 Warrants [Member]
Derivative, Gain on Derivative	$ 500	$ 300	$ 100
May 2020 Warrants [Member] | Series E Preferred Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)						3,200
May 2020 Warrants [Member] | Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)						4,400
May 2020 Warrants [Member] | Arena Investors [Member]
Warrants and Rights Exercised (in shares)	7,600
Derivative, Gain on Derivative	$ 900
May 2020 Warrants [Member] | Arena Investors [Member] | Series E Preferred Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	3,200
May 2020 Warrants [Member] | Arena Investors [Member] | Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	4,400
Reclassified Warrant From Equity to Derivative Liability [Member]
Derivative Liability						$ 40,400
Derivative Deemed Dividend						$ 32,800

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Note 10 - Derivative Liabilities - Summary of Gain Loss on Derivative Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Derivative liability beginning balance	$ 59	$ 40,443	$ 6,521	$ 0
Change in fair value of derivative liabilities	(57)	(28,669)	(1,713)	(28,669)
Derivative liability ending balance	$ 2	$ 11,774	2	11,774
Reclassification of derivative			0	40,443
Warrant exercise			$ (4,806)	$ 0

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Note 11 - Leases - Summary of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues	$ 132,277	$ 185,857	$ 473,412	$ 529,876
Fixed Components [Member]
Revenues	844	1,139	2,577	3,549
Variable Components [Member]
Revenues	0	0	0	0
Total Revenue [Member]
Revenues	$ 844	$ 1,139	$ 2,577	$ 3,549

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Note 12 - Reportable Segments (Details Textual)	9 Months Ended
	Sep. 30, 2023
Number of Reportable Segments	2

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Note 12 - Reportable Segments - Operating Segments Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Operating income (loss)	$ (6,361)		$ (24,460)
Depreciation and amortization	1,172	$ 433	3,574	$ 1,745
Capital expenditures			143	205
Investments	6,147		6,147		$ 6,993
Assets	187,517		187,517		168,454
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Operating income (loss)		(7,993)		(27,387)
Depreciation and amortization		433		1,745
Infrastructure [Member]
Operating income (loss)	658		(2,207)
Depreciation and amortization	1,166	391	3,539	1,618
Capital expenditures			143	205
Investments	1,595		1,595		1,389
Assets	114,628		114,628		102,248
Infrastructure [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Operating income (loss)		(1,152)		(4,294)
Telecommunications [Member]
Operating income (loss)	108		(29)
Depreciation and amortization	6	42	35	127
Capital expenditures			0	0
Investments	0		0		0
Assets	54,880		54,880		42,046
Telecommunications [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Operating income (loss)		181		806
Non-operating Corporate [Member]
Operating income (loss)	(7,127)		(22,224)
Investments	4,552		4,552		5,604
Assets	$ 18,009		$ 18,009		$ 24,160
Non-operating Corporate [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Operating income (loss)		$ (7,022)		$ (23,899)

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Note 12 - Reportable Segments - Reconciliation of Segment Loss (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Loss from operations	$ (6,361)						$ (24,460)
Interest expense	1,489						4,515
Loss on impairment	(56)						(114)	$ 0
Other income (expense), net	848						1,876
Foreign exchange gain (loss)	116						(53)
Income (loss) before income taxes	(6,210)			$ 16,173			(23,916)	(12,341)
Income tax (expense) benefit	741			(8)			1,093	(1,336)
Net income (loss)	(6,951)	$ (8,846)	$ (9,212)	14,407	$ (19,642)	$ (13,141)	(25,009)	(11,005)
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Loss from operations				(7,993)				(27,387)
Interest expense				1,015				9,939
Loss on impairment				0				0
Other income (expense), net				(3,289)				(2,255)
Foreign exchange gain (loss)				1				(86)
Income (loss) before income taxes				16,173				(12,341)
Income tax (expense) benefit				(8)				(1,336)
Net income (loss)				16,181				(11,005)
Operating Segments [Member]
Loss from operations	(6,361)						(24,460)
Income (loss) from investments, net	675						1,637
Change in fair value of derivative liabilities	57						1,713
Interest expense	(1,489)						(4,515)
Loss on impairment	(56)						(114)
Other income (expense), net	848						1,876
Foreign exchange gain (loss)	116						(53)
Total other expenses	151						544
Income (loss) before income taxes	(6,210)						(23,916)
Income tax (expense) benefit	(741)						(1,093)
Net income (loss)	$ (6,951)						$ (25,009)
Operating Segments [Member] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Loss from operations				(7,993)				(27,387)
Income (loss) from investments, net				(200)				(1,343)
Change in fair value of derivative liabilities				28,669				28,669
Interest expense				(1,015)				(9,939)
Loss on impairment				0				0
Other income (expense), net				(3,289)				(2,255)
Foreign exchange gain (loss)				1				(86)
Total other expenses				24,166				15,046
Income (loss) before income taxes				16,173				(12,341)
Income tax (expense) benefit				8				1,336
Net income (loss)				$ 16,181				$ (11,005)

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Note 13 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands					3 Months Ended		6 Months Ended	9 Months Ended
	Apr. 20, 2022	Feb. 25, 2022	Dec. 17, 2021	Jan. 15, 2021	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2022	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Dec. 08, 2020
Preferred Stock, Shares Authorized (in shares)								20,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share)								$ 0.0001
Warrants and Rights Outstanding					$ 11,800		$ 11,800
Derivative Liability					40,443		40,443	$ 2	$ 59	$ 6,521	$ 11,774	$ 0
Derivative Deemed Dividend					32,800		32,800
Percentage of Issuance of Indebtedness, Maximum	25.00%
Mezzanine Equity, Preferred Stock Value								$ 19,458		$ 16,572
Securities Purchase Agreement [Member]
Stock Issued During Period, Shares, New Issues (in shares)	1,428,575
Sale of Shares and Warrants, Purchase Price (in dollars per share)	$ 10
Private Placement [Member]
Stock Issued During Period, Shares, New Issues (in shares)				8,700,000
Stock Issued, Maximum Aggregate Amount Allowed													$ 2,500
Shares Issued, Price Per Share (in dollars per share)													$ 0.25
Stock Issued During Period, Value, New Issues				$ 2,200	$ 4,696
Common Stock [Member] | Private Placement [Member]
Stock Issued During Period, Shares, New Issues (in shares)					1,428,575
Stock Issued During Period, Value, New Issues					$ 0
May 2020 Warrants [Member]
Warrants and Rights Outstanding					$ 11,800		$ 11,800
May 2020 Warrants [Member] | Common Stock [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)					4,400,000		4,400,000
Securities Purchase Agreement [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)	2,000,000
Warrants and Rights Outstanding, Term (Year)	3 years
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share)	$ 8.5
Conversion of Convertible Notes to Series D Preferred Stock [Member]
Debt Conversion, Original Debt, Amount							$ 12,500
Debt Instrument, Unamortized Discount					$ 4,300		$ 4,300
Series D Preferred Stock [Member]
Preferred Stock, Shares Issued (in shares)					1,177,023		1,177,023	1,177,023		1,177,023
Stock Issued During Period, Value, New Issues					$ 12,499
Preferred Stock, Shares Outstanding (in shares)								1,177,023		1,177,023
Series D Preferred Stock [Member] | Common Stock [Member]
Stock Issued During Period, Shares, New Issues (in shares)					0
Stock Issued During Period, Value, New Issues					$ 0
Series D Convertible Preferred Stock [Member]
Preferred Stock, Shares Issued (in shares)								1,177,023		1,177,023
Preferred Stock, Convertible, Conversion Price (in dollars per share)								$ 0.4248
Preferred Stock, Liquidation Preference Per Share (in dollars per share)								$ 10.6191
Preferred Stock, Shares Outstanding (in shares)								1,177,023		1,177,023
Series D Convertible Preferred Stock [Member] | Quarterly Dividends [Member]
Preferred Stock, Liquidation Preference Per Share (in dollars per share)								$ 0.23893
Preferred Stock, Dividend Rate, Percentage								2.25%
Series E Preferred Stock [Member]
Preferred Stock, Shares Issued (in shares)								3,200,000
Preferred Stock, Convertible, Conversion Price (in dollars per share)					$ 0.5		$ 0.5
Preferred Stock, Shares Outstanding (in shares)										0
Series E Preferred Stock [Member] | May 2020 Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)					3,200,000		3,200,000
Series C Preferred Stock [Member]
Stock Issued During Period, Value, New Issues						$ 12,050
Temporary Equity, Shares Issued (in shares)								6,226,370		6,226,370
Mezzanine Equity, Preferred Stock Value								$ 19,458		$ 16,572
Temporary Equity, Shares Outstanding (in shares)								6,226,370		6,226,370
Series C Preferred Stock [Member] | Arena Investors LP [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares)			2,370,370
Stock Issued During Period, Shares, New Issues (in shares)			2,370,370
Stock Issued During Period, Value, New Issues			$ 7,400
Stock Issued, Aggregate Purchase Price			$ 6,700
Series C Preferred Stock [Member] | Island Capital [Member]
Preferred Stock, Convertible, Conversion Price (in dollars per share)								$ 3.125
Preferred Stock, Dividend Rate, Percentage								6.00%
Stock Issued During Period, Shares, New Issues (in shares)		3,856,000
Stock Issued During Period, Value, New Issues		$ 12,100
Stock Issued, Aggregate Purchase Price		$ 10,800
Temporary Equity, Shares Issued (in shares)								6,226,370		6,226,370
Closing Price, Percentage of Effective Conversion Price								200.00%
Percentage of Aggregate Stated Value Outstanding								100.00%
Percentage of Internal Rate of Return								20.00%
Temporary Equity, Shares Outstanding (in shares)								6,226,370		6,226,370
Series C Preferred Stock [Member] | Common Stock [Member]
Stock Issued During Period, Shares, New Issues (in shares)						0
Stock Issued During Period, Value, New Issues						$ 0

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Note 13 - Stockholders' Equity - Warrant Activity (Details) - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Warrants outstanding at January 1, 2022 (in shares)	17,902	24,085
Issued, warrants (in shares)	0	2,000
Exercised, warrants (in shares)	(7,600)	(8,183)
Expired, warrants (in shares)	0	0
Warrants exercisable (in shares)	10,302	17,902
Warrants outstanding at December 31, 2022 (in shares)	10,302	17,902
Weighted Average [Member]
Warrants outstanding, exercise price (in dollars per share)	$ 2.56	$ 1.74
Warrants outstanding, term (Year)	2 years 1 month 6 days	1 year 9 months 18 days	3 years
Issued, exercise price (in dollars per share)	$ 0	$ 8.5
Issued, term (Year)		2 years 9 months 18 days
Exercised, exercise price (in dollars per share)	0.5	$ (1.59)
Expired, exercise price (in dollars per share)	0	0
Warrants exercisable, exercise price (in dollars per share)	$ 4.08	$ 2.56
Warrants exercisable, term (Year)	2 years 1 month 6 days	1 year 9 months 18 days
Warrants outstanding, exercise price (in dollars per share)	$ 4.08	$ 2.56

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Note 14 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands			3 Months Ended		9 Months Ended
	Jan. 11, 2021	Nov. 01, 2020	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)					7,480
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share)					$ 1.04
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)			$ 0.53		$ 0.62
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period, Intrinsic Value			$ 0	$ 700	$ 100	$ 700
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount			$ 22,900		$ 22,900
Non Qualified Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)		3 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross (in shares)		10,500
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share)		$ 0.55
Share-Based Compensation Arrangement by Share-Based Payment Award, Expiration Period (Year)		10 years
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in dollars per share)		$ 0.51
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)					1 year 6 months
Two Thousand Twenty Omnibus Equity Incentive Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized (in shares)	75,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant (in shares)			35,800		35,800
Two Thousand Twenty Omnibus Equity Incentive Plan [Member] | Minimum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)	1 year
Two Thousand Twenty Omnibus Equity Incentive Plan [Member] | Maximum [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period (Year)	4 years

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Note 14 - Stock-based Compensation - Summary of Stock Options (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Options outstanding at December 31, 2022 (in shares) | shares	49,576
Options outstanding at December 31, 2022 (in dollars per share) | $ / shares	$ 2.07
Options granted (in shares) | shares	7,480
Options granted (in dollars per share) | $ / shares	$ 1.04
Options exercised (in shares) | shares	(75)
Options exercised (in dollars per share) | $ / shares	$ 0.55
Options cancelled (in shares) | shares	(8,553)
Options cancelled (in dollars per share) | $ / shares	$ 2.85
Options outstanding at September 30, 2023 (in shares) | shares	48,428
Options outstanding at September 30, 2023 (in dollars per share) | $ / shares	$ 1.77
Options outstanding at September 30, 2023 | $	$ 122
Options outstanding at September 30, 2023 (Year)	4 years 9 months 14 days
Options exercisable at September 30, 2023 (in shares) | shares	26,943
Options exercisable at September 30, 2023 (in dollars per share) | $ / shares	$ 1.6
Options exercisable at September 30, 2023 | $	$ 92
Options exercisable at September 30, 2023 (Year)	3 years 11 months 19 days
Vested and expected to vest at September 30, 2023 (in shares) | shares	48,428
Vested and expected to vest at September 30, 2023 (in dollars per share) | $ / shares	$ 1.77
Vested and expected to vest at September 30, 2023 | $	$ 122
Vested and expected to vest at September 30, 2023 (Year)	4 years 9 months 14 days

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Note 14 - Stock-based Compensation - Assumptions of BSM Valuation (Details) - Weighted Average [Member]	9 Months Ended
	Sep. 30, 2023
Weighted risk-free interest rate 1	3.50%	[1]
Weighted-average volatility 2	59.00%	[2]
Weighted expected dividend yield 3	0.00%	[3]
Weighted expected term (in years) 4 (Year)	5 years 8 months 12 days	[4]

[1] Risk-free interest rate - Determined based on the U.S. Treasury yield in effect at the time of the grant for zero-coupon U.S. Treasury notes with remaining terms similar to the expected term of the options.

[2] Expected volatility - Determined based on a blend of the Company’s historic stock price volatility and the historic volatility of a peer group of publicly traded companies.

[3] Expected dividend yield - Determined to be zero as the Company has not and does not currently plan to issue dividends.

[4] Expected term - Determined using the “simplified method” for estimating the expected option life, which is the midpoint of the weighted-average vesting period and contractual term of the option.

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Note 14 - Stock-based Compensation - Summary of Restricted Stock Units (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
RSUs outstanding (in shares) | shares	405
RSUs outstanding, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.26
RSUs granted (in shares) | shares	40
RSUs granted, weighted average grant date fair value (in dollars per share) | $ / shares	$ 0.92
RSUs released (in shares) | shares	(76)
RSUs released, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.27
RSUs forfeited (in shares) | shares	(100)
RSUs forfeited, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.22
RSUs outstanding (in shares) | shares	269
RSUs outstanding, weighted average grant date fair value (in dollars per share) | $ / shares	$ 2.07
Weighted average remaining recognition period in years (Year)	2 years 10 months 24 days
Unamortized stock-based compensation expense | $	$ 540

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Note 14 - Stock-based Compensation - Non-cash Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Allocated share-based payment expense	$ 4,583	$ 5,867	$ 15,449	$ 20,514
Income tax benefit (1)	425	0	574	1,735
After-tax stock-based compensation expense	4,158	5,867	14,875	18,779
Cost of Sales [Member]
Allocated share-based payment expense	228	506	961	2,014
General and Administrative Expense [Member]
Allocated share-based payment expense	845	1,775	3,956	7,344
Salaries and Related Benefits [Member]
Allocated share-based payment expense	$ 3,510	$ 3,586	$ 10,532	$ 11,156

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Note 15 - Commitments, Contingencies and Concentration Risk (Details Textual) - Customer Concentration Risk [Member]	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Accounts Receivable [Member] | One Customer [Member]
Concentration Risk Number of Major Customers	1		1
Concentration Risk, Percentage			10.00%
Accounts Receivable [Member] | Three Customers [Member]
Concentration Risk Number of Major Customers					3
Concentration Risk, Percentage					10.00%
Aggregate Accounted Credit Risk Percentage One					46.00%
Revenue Benchmark [Member] | One Customer [Member]
Concentration Risk Number of Major Customers	1		1
Concentration Risk, Percentage			10.00%
Aggregate Accounted Credit Risk Percentage One			14.00%
Revenue Benchmark [Member] | Two Customers [Member]
Concentration Risk Number of Major Customers	2	2	2	2
Concentration Risk, Percentage	10.00%			10.00%
Aggregate Accounted Credit Risk Percentage One	35.00%	32.00%		29.00%

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Note 16 - Income Taxes - Provision for Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income (loss) before income taxes	$ (6,210)	$ 16,173	$ (23,916)	$ (12,341)
Income tax benefit (expense)	$ (741)	$ 8	$ (1,093)	$ 1,336
Effective tax rate	(11.90%)	(0.00%)	(4.60%)	10.80%

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Note 17 - Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Antidilutive securities (in shares)	101,235	25,122	102,920	117,824
Convertible Notes Payable [Member]
Antidilutive securities (in shares)	0	0	0	33,250
Preferred Stocks [Member]
Antidilutive securities (in shares)	38,852	0	37,856	16,951
Equity Option [Member]
Antidilutive securities (in shares)	51,755	25,122	51,478	48,906
Restricted Stock Units (RSUs) [Member]
Antidilutive securities (in shares)	325	0	368	154
Contingently Issuable Shares [Member]
Antidilutive securities (in shares)	0	0	493	1,685
Warrants [Member]
Antidilutive securities (in shares)	10,303	0	12,725	16,878