The following Management's Discussion and Analysis of Financial Condition and Results of Operations summarizes the significant factors affecting the consolidated operating results, financial condition, liquidity and capital resources ofMoneyLion and is intended to help the reader understandMoneyLion , our operations and our present business environment. This discussion should be read in conjunction withMoneyLion's unaudited consolidated financial statements and notes to those financial statements included in Part I, Item 1 "Financial Statements" within this Quarterly Report on Form 10-Q. References to "we," "us," "our," "Company" or "MoneyLion" refer toMoneyLion Technologies Inc. and, as context requires, its wholly-owned subsidiaries for the periods prior to the Business Combination Closing Date and toMoneyLion Inc. and, as context requires, its wholly-owned subsidiaries for the period thereafter. "Fusion" refers toFusion Acquisition Corp. for the periods prior to the Business Combination Closing Date. Reclassification-The acquisitions of MALKA and Even Financial and related ongoing integration activities have caused significant changes to the revenue and cost structure of the Company such that the organization of financial statement line items in both the consolidated balance sheets and the consolidated statements of operations used in prior reporting periods are no longer sufficient to properly present the Company's financial condition and results of operations as ofMarch 31, 2022 . Reclassifications have been performed relative to the previous presentation of the consolidated balance sheet as ofDecember 31, 2021 and the consolidated statement of operations for the quarter endedMarch 31, 2021 to present in a new format that better represents the new revenue and cost structure of the Company. The reclassifications had no impact on previously reported total assets, total liabilities or net income (loss) and an immaterial impact on total revenue, net. There was no impact on the consolidated statements of cash flows or consolidated statements of redeemable convertible preferred stock, redeemable noncontrolling interests and stockholders' equity (deficit). There are also related reclassifications and expanded disclosure, where necessary, contained within the notes to the consolidated financial statements. OverviewMoneyLion is a leading digital financial services and lifestyle content platform. We provide consumers a full suite of financial and non-financial solutions, bundling proprietary, low-cost financial products with products that are offered through our marketplace and network affiliate partners. We engage and educate our customers with daily, money-related and money-adjacent content, delivered through a hyper-personalized feed, to empower our customers at all times. When our customers enjoy periods of financial excess, we provide tools for them to easily manage their spending and saving goals through our digital banking and automated investing solutions. When our customers experience moments of financial need, we provide them immediate access to innovative lending or earned income advance products and credit improvement programs that can bridge these times of financial stress and improve their financial health. We also leverage our distinct data, technology and network advantages to deliver leading embedded finance marketplace solutions for ourEnterprise Partners , allowing them to better connect with existing end-users and reach new potential end-users, complemented by advertising services and digital media and content production services custom designed to promoteEnterprise Partners' products and services. We believe that the combination of solutions thatMoneyLion provides uniquely positions us to disrupt how financial products are consumed, unlocking a total addressable market that we estimate to be over$274 billion .
The Company’s key consumer product offerings include:
RoarMoney Premium Mobile Banking - RoarMoney is ourFederal Deposit Insurance Corporation -insured digital demand deposit account with zero minimums, premium features and rewards. Our RoarMoney demand deposit accounts are currently issued byMetaBank, N.A. ("MetaBank"), aSouth Dakota -based, nationally chartered bank owned by Meta Financial Group, Inc. (NASDAQ: CASH). Customers can open a RoarMoney account in minutes through theMoneyLion mobile application, add funds to their account and begin spending using a RoarMoney virtual debit card. RoarMoney accounts also include a physical MoneyLion Debit Mastercard that can be used at any of the approximately 55,000 Allpoint ATM network locations to make no-fee withdrawals. We earn revenue from interchange fees from payment networks based on customer expenditures on the debit card. We also earn revenue from cardholder fees such as a small monthly administrative fee charged to our customers and a fee charged to customers when an out-of-network ATM is utilized to withdraw cash. Both interchange fees and cardholder fees are reflected in service and subscription fees. We incur direct costs in connection with the RoarMoney account offering, which include fees paid to the payment networks
and
our partner bank.
26
Personalized Investing - MoneyLion Investing is an online investment account
that offers access to separately managed accounts invested based on model
portfolios comprised of ETFs and managed on a discretionary basis. Advisory
services related to the MoneyLion investment account are provided by ML Wealth
LLC ("ML Wealth"), an SEC -registered investment adviser and an indirect
wholly-owned subsidiary of MoneyLion . Brokerage and custodial services are
provided by DriveWealth, a third-party provider. This fully-managed account
model allows customers to set their investment strategy and let ML Wealth manage
investment decisions to implement that strategy on a discretionary basis. An
investment account holder simply identifies their investing comfort zone to
receive a personalized portfolio, a mix of stock and bond ETFs. Our managed
investment account is available on a standalone basis. Through MoneyLion
Investing, customers are able to develop sound investing habits by enabling
certain account features, including auto-investing and round ups.
Auto-investing allows our customers to automatically contribute into their
investment account with recurring deposits directly into the account. With round
ups, customers can also choose to automatically round up purchases made either
on their RoarMoney account or an external bank account to the nearest dollar.
The accrued round ups can then be transferred into the customer's MoneyLion
Investing account and invested in accordance with the customer's chosen
investment strategy. We earn revenue from a small monthly administration fee
from our customers who use this product, which is reflected in service and
subscription fees.
Crypto - MoneyLion Crypto is an online cryptocurrency account that enables
customers to buy, sell and hold cryptocurrency. The account is provided by Zero
Hash LLC and its affiliate, Zero Hash Liquidity Services LLC (collectively,
"Zero Hash"). The Zero Hash entities are registered as money services businesses
with FinCEN and hold active money transmitter licenses (or the state equivalent
of such licenses) in all U.S. states and the District of Columbia except for (i)
California , Indiana and Wisconsin , where Zero Hash relies upon licensing
exemptions; (ii) Montana , which does not currently have a money transmitter
licensing requirement; and (iii) Hawaii . The Zero Hash entities currently engage
in crypto asset activities in all U.S. states and the District of Columbia
except for New York and Hawaii . RoarMoney accountholders can open a MoneyLion
Crypto account through the MoneyLion mobile application and fund it via their
RoarMoney account. In addition, customers can also choose to automatically round
up purchases made either on their RoarMoney account or an external bank account
to the nearest dollar. The accrued round ups can then be transferred into the
customer's MoneyLion Crypto account and invested in Bitcoin. As of December 31,
2021 , the only cryptocurrencies available through the MoneyLion Crypto account
were Bitcoin and Ether. In January 2022 , MoneyLion Crypto expanded to include
Bitcoin Cash and Litecoin. We are currently in the process of adding an
additional cryptocurrency, Solana, to the MoneyLion Crypto platform and
anticipate adding an additional cryptocurrency, Avalanche, during the end of the
second quarter of 2022 or beginning of the third quarter of 2022. Both MoneyLion
and Zero Hash must consent in writing before adding any additional digital
assets to the program. We earn revenue from Zero Hash as they pay us a share of
the fees that they earn from our customers in exchange for MoneyLion enabling
Zero Hash to effect digital currency-related transactions for our customers.
This revenue is reflected in service and subscription fees.
Instacash - Instacash is our 0% APR advance product that gives customers early
access to their recurring income deposits. Customers can access Instacash
advances at any time during a regular deposit period up to their advance limit,
providing customers with the flexibility to cover temporary cash needs and avoid
costly overdraft fees. There are no fees associated with regular delivery of
funds to either a RoarMoney account (typically delivered within 12-48 hours) or
an external checking account (typically delivered within two to five business
days). However, customers have the option to pay an additional fee in order to
receive their funds on an expedited basis (typically within minutes or less),
the amount of which is based on the amount of the disbursement and whether the
funds are delivered to a RoarMoney account or an external checking account.
Customers may also choose to leave MoneyLion an optional tip for use of the
Instacash service. We earn revenue from tips and instant transfer fees, both
reflected in service and subscription fees.
27
Credit Builder Plus - Our Credit Builder Plus membership program offers a proven
path for our customers to access credit and establish or rebuild history, build
savings, establish financial literacy and track their financial health. For a
monthly cost of $19.99 , customers receive a suite of services including banking
and investment accounts, credit tracking and financial literacy content, rewards
programs and access to loans of up to $1,000 at competitive rates offered by
MoneyLion lending subsidiaries, allowing our customers to establish up to
twelve months of payment history with all three credit bureaus. We offer our
Credit Builder Plus members access to the Lion's Share Loyalty Program, where
members can earn rewards of up to $19.99 per month. We earn revenue from monthly
subscription fees paid by our customers. These fees are reflected in service and
subscription fees. As part of the Credit Builder Plus membership program,
members may apply for a Credit Builder Plus secured personal loan. In addition
to a free standard disbursement option, we also offered our customers an option
to disburse their funds to their MoneyLion -serviced RoarMoney bank account or
external bank account on an expedited basis for an instant transfer fee. This
instant disbursement option for Credit Builder Plus loans was removed in the
second quarter of 2021. We earn revenue from interest income, reflected in net
interest income on finance receivables, and, prior to the removal of the instant
disbursement option, instant transfer fees, reflected in service and
subscription fees.
Financial Tracking - We offer our customers access to financial tracking tools
such as Financial Heartbeat, GamePlan and credit score tracking. Financial
Heartbeat is an intelligent, automated tool that guides customers on their
financial journey. Financial Heartbeat evaluates customers' financial situation
across four key dimensions: SAVE (savings and financial preparedness), SPEND
(spending and personal budget), SHIELD (insurance needs and coverage) and SCORE
(credit tracking and health). Through our easy-to-use interface, customers can
review the key issues impacting their financial situation, decide what actions
to take, evaluate which products to use and receive guidance on how to stay
motivated on their journey towards financial wellness. GamePlan provides our
customers with a personalized action plan, including a checklist with tasks,
meant to help them reach their financial goals across different categories such
as spending, saving and more. Financial tracking tools are offered to our
customers at no cost and we do not earn revenue from these services.
MoneyLife - Consistent with our vision of establishing MoneyLion as a lifestyle
brand, in 2021 we introduced MoneyLife, an online financial education content
destination. MoneyLife is an influencer-focused, video content-driven
educational platform where customers can share and discover ideas, advice and
insights regarding their financial lives. MoneyLife includes highly personalized
content driven by financial advice and education influencers, tools to achieve
financial goals and additional ways of earning rewards to shop and save. Our
acquisition of MALKA, a creator network and content platform, accelerates our
ability to engage with consumers across all digital and emerging channels,
allowing us to directly connect with communities natively inside and outside of
our platform. Through MoneyLife, we provide an additional daily destination site
for current customers, drive additional prospective customers to MoneyLion and
increase customer engagement and cross-sell opportunities for both MoneyLion and
its affiliate partners.
The Company’s key enterprise service offerings include:
Affiliate Marketing Program - We work with various affiliate partners that offer products or services that we may recommend to our customers via display ads, offers or campaigns through our digital platforms. Our customers can access these offers on a standalone basis. We earn revenue from fees from our affiliate partners based on a range of criteria depending on each affiliate relationship including, but not limited to, customers' clicks, impressions, completed transactions or a share of revenue generated for the affiliate partner. This revenue is reflected in enterprise service revenues. EvenFinancial Marketplace - Through Even Financial, we digitally connect and match consumers with real-time personalized financial product recommendations from banks, insurance and fintech companies on mobile apps, websites and other consumer touchpoints through its marketplace technology. Our infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, bridging financial institutions and channel partners via Even Financial's API and embedded finance marketplaces. Even Financial's network includes over 400Product Partners and 500Channel Partners , covering a breadth of financial services including loans, credit cards, mortgages, savings, and insurance products. We earn revenue, which is reflected in enterprise service revenue, from ourProduct Partners based on performance structure. We incur direct costs related to the fees paid to ourChannel Partners . Digital Media and Content Production - Through MALKA, we offer digital media and content production services provided to enterprise clients in entertainment, sports, gaming, live streaming and other sectors. We produce content across every digital medium, from creative advertising campaigns and original branded content to e-gaming livestreams, podcast series, feature length documentaries, sports representation and marketing. We earn revenue, which is reflected in enterprise service revenue, from our enterprise clients based on performance obligations within our contracts with them. 28 Recent Developments
Recent events impacting our business are as follows:
COVID-19 - The COVID-19 pandemic has caused substantial changes in consumer behavior, restrictions on business and individual activities and high unemployment rates, which led to reduced economic activity and may continue to cause economic volatility. There continue to be significant uncertainties associated with the COVID-19 pandemic, including with respect to the course, duration and severity of the virus and additional variants, future actions that may be taken by governmental authorities and private businesses to contain the COVID-19 pandemic or to mitigate its impact and the effectiveness of such actions, the timing and speed of economic recovery and the ultimate effectiveness of vaccinations for COVID-19. In response to the economic uncertainty caused by the pandemic, during 2021, we made certain operational changes and implemented certain consumer support programs which were immaterial to our performance. For example, we reduced our marketing activities such as advertising through digital platforms, which have since returned to pre-pandemic levels and also reduced our sponsorship arrangements with third parties. In addition, we implemented underwriting policy changes on a targeted basis to more closely manage credit risk while we further evaluated market conditions. Our underwriting models are dynamic relative to real time changes in our customer's income and credit profiles and our credit performance remained steady as our underwriting models quickly adapted to these changes. To further support our customers, we expanded our payment deferral options and reduced certain fees, while providing them with relevant content and resources on topics like unemployment insurance and stimulus checks. For instance, for our secured personal loan customers with no prior missed payments, we offered payment deferrals based on a customer's payment frequency, ranging from one payment deferral for monthly payments and up to three payment deferrals for weekly payments. For our Instacash customers with an outstanding advance, we allowed them to change the scheduled repayment date by up to 14 days. Once the advance was repaid, the customer could request another change to the scheduled repayment on another advance. While there is no limit to the number of changes a customer may be granted, they are limited to one at a time and per advance. Despite the economic uncertainty as a result of COVID-19, we have increased the number of customers on our platform.
Management will continue to monitor the nature and extent of potential impact to the business as the pandemic continues.
Business Combinations – Since
, Merger with Fusion – On
Business Combination with Fusion and became a publicly traded company. The
Business Combination was accounted for as a reverse recapitalization in
in accordance with
accounting acquirer. Since the Business Combination was accounted for as a
reverse recapitalization, no goodwill or other intangible assets were recorded,
in accordance with
treated as the “acquired” company for financial reporting purposes. Operations
prior to the Business Combination are those of Legacy MoneyLion. See Part II,
Item 8 “Business Combination” in the Company’s Annual Report on Form 10-K for
the fiscal year endedDecember 31, 2021 for additional information. ? MALKA Acquisition - OnNovember 15, 2021 ,MoneyLion completed its acquisition of MALKA (the "MALKA Acquisition"). MALKA is a creator network and content platform that provides digital media and content production services to us and to its own clients in
entertainment,
sports, gaming, live streaming and other sectors. The MALKA
Acquisition
acceleratesMoneyLion's ability to engage with consumers across all digital and emerging channels, allowingMoneyLion to directly connect with communities natively inside and outside of its existing
platform.
We intend for MALKA to operate as an indirect, wholly-owned
subsidiary
ofMoneyLion Inc. with MALKA's pre-acquisition management team
leading
day-to-day operations.
Related to the closing of the MALKA Acquisition, MoneyLion issued
4,181,441 in restricted shares of MoneyLion Class A Common Stock
and
paid approximately$10.0 million in cash to the sellers in
exchange for
all of the issued and outstanding membership interests of MALKA.
MoneyLion also paid down approximately $2.2 million of MALKA debt
facilities. The sellers may earn up to an additional $35 million
payable in restricted shares of MoneyLion Class A Common Stock if
MALKA's revenue and EBITDA exceeds certain targets in 2021 and 2022.
The total purchase price of the MALKA Acquisition was approximately
$52.7 million .
29
? Even Acquisition - On February 17, 2022 , MoneyLion completed its
acquisition of Even Financial (the "Even Acquisition"). Even Financial
digitally connects and matches consumers with real-timepersonalized
financial product recommendations from banks, insurance and
fintech
companies on mobile apps, websites and other consumer
touchpoints
through its marketplace technology. Even Financial's
infrastructure
leverages machine learning and advanced data science to solve a
significant pain point in financial services customeracquisition,
seamlessly bridging financial institutions and channel partners via its
industry-leading API and embedded finance marketplaces.
The Even Acquisition strengthens MoneyLion's platform by improving
consumers' abilities to find and access the right financialproducts to
help them manage their financial lives. Even Financial's growing
network includes over 400 Product Partners and 500 Channel Partners ,
covering a breadth of financial services including loans, credit cards,
mortgages, savings and insurance products. The Even Acquisition also
expands MoneyLion's addressable market, extends the reach of
MoneyLion's own products, diversifies its revenue mix and furthers
MoneyLion's ambition to be the premier financial super app for
hardworking Americans.
At the closing of the Even Acquisition, the Company (i) issued to the
equityholders of Even Financial an aggregate of 28,164,811 shares of
the Company's Series A Redeemable Convertible Preferred Stock, along
with an additional 529,120 shares of Series A RedeemableConvertible
Preferred Stock to advisors of Even Financial for transaction
expenses,
valued at$0.2 million , (ii) paid to certain Even Financial
management
equityholders approximately$14.5 million in cash and (iii)
exchanged
8,883,228 options to acquire Even Financial common stock for
5,901,846
options to acquire MoneyLion Class A Common Stock, of which the vested
portion at the acquisition date was valued at $8.9 million . The
equityholders and advisors of Even Financial are also entitled to
receive an additional payment from the Company of up to anaggregate of
8,000,000 shares of Series A Redeemable Convertible Preferred
Stock,
based on the attributed revenue of Even Financial's business
during the
13-month period commencingJanuary 1, 2022 (the "Earnout"), and certain recipients of options to acquire shares of the Company's Class A common stock are entitled to receive dividend equivalents in lieu of
receiving
Series A Redeemable Convertible Preferred Stock, subject to
certain
conditions (the "Preferred Stock Equivalents"). The combined
value of
the Earnout and Preferred Stock Equivalents was$45.3 million as of the closing of the Even Acquisition. The total purchase price was approximately$270 million , subject to customary purchase price adjustments for working capital and inclusive of amounts used to repay approximately$5.7 million of existing indebtedness of Even
Financial
and pay$2.9 million of seller transaction costs.
Factors Affecting Our Performance
The Company is subject to a number of risks including, but not limited to, the need for successful development of products, the need for additional capital (or financing) to fund operating losses, competition from substitute products and services from larger companies, protection of proprietary technology, dependence on key individuals and risks associated with changes in information technology.
New customer growth and increasing usage across existing customers
Our ability to effectively acquire new customers through our acquisition and
marketing efforts, and drive usage of our products across our existing customers
is key to our growth. We invested in the platform approach and believe our
customers' experience is enhanced by using our full product suite as we can
better tailor the insights and recommendations. In turn, this generates higher
revenue and lifetime value from our customer base.
30
Product expansion and innovation
We believe in the platform approach and providing relevant products to our customers to help them better manage their financial lives, both in times of need and excess. We will continue to invest in enhancing our existing suite of products and developing new products. Any factors that impair our ability to do so may negatively impact our efforts towards retaining and attracting customers.
General economic and market conditions
Our performance is impacted by the relative strength of the overall economy, market volatility, consumer spending behavior and consumer demand for financial products and services. The willingness of our customers to spend, invest, or borrow may fluctuate with their level of disposable income. Other factors such as interest rate fluctuations or monetary policies may also impact our customers' behavior and our own ability to fund advances and loan volume. Competition We compete with several larger financial institutions and technology platforms that offer similar products and services. We compete with those that offer both single point solutions similar to any one of our products as well as more integrated, complete solutions. Some of our competitors may have access to more resources than we do and thus may be able to offer better pricing or benefits to our customers. Pricing of our products We derive a substantial portion of our revenue from fees earned from our products. The fees we earn are subject to a variety of external factors such as competition, interchange rates and other macroeconomic factors, such as interest rates and inflation, among others. We may provide discounts to customers who utilize multiple products to expand usage of our platform. We may also lower pricing on our products to acquire new customers. For example, we offer our customers discounts such as Shake 'N' Bank cashback and other cashback rewards opportunities as part of our RoarMoney bank account product offering and such discounts are provided to customers based on eligibleMoneyLion debit card transactions. On average, approximately 40% of our eligible RoarMoney bank account customers receive this benefit. We also offer our Credit Builder Plus members access to our Lion's Share Loyalty Program where members can earn up to$19.99 per month. The size of the Lion's Share reward depends on a customer's number of logins into theMoneyLion app and purchases using their RoarMoney account in that month. On average, approximately 25% of our Credit Builder Plus members who met the minimum eligibility criteria received a Lion's Share reward. Product mix We offer various products and services on our platform, including a membership program, loans, cash advances, affiliate offers and cryptocurrency, investment and bank accounts. Each product has a different profitability profile. The relative usage of products with high or low profitability and their lifetime value could have an impact on our performance.
Access and cost of financing
Our credit products and other receivables were primarily financed through IIA
until the end of the fourth quarter of 2021. Beginning in the fourth quarter of
2021, we transitioned our primary source of funding for originated receivables
from IIA to special purpose vehicle financings from third-party institutional
lenders. Loss of one or more of the financing sources we have for our credit
products and other receivables could have an adverse impact on our performance,
and it could be costly to obtain new financing.
31
Key Performance Metrics
We regularly review several metrics, including the following key metrics, to
evaluate our business, measure our performance, identify trends affecting our
business, formulate financial projections and make strategic decisions.
Total Customers
We define Total Customers as the cumulative number of customers that have opened
at least one account, including banking, membership subscription, secured
personal loan, cash advance, managed investment account, cryptocurrency account
or affiliate product. Total Customers also include customers that have submitted
for, received and clicked on at least one offer, including loans, credit cards,
mortgages, savings and insurance products, from a Product Partner via our Even
Financial marketplace. We consider Total Customers to be a key performance
metric as it can be used to understand lifecycle efforts of our customers, as we
look to cross-sell products to our customer base and grow our platform. Total
Customers were 3.9 million and 1.8 million as of March 31, 2022 and 2021,
respectively.
Total Products
We define Total Products as the total number of products that our Total
Customers have opened including banking, membership subscription, secured
personal loan, cash advance, managed investment account, cryptocurrency account,
affiliate product, or signed up for our financial tracking services (with either
credit tracking enabled or external linked accounts), whether or not the
customer is still registered for the product. Total Products also include
products that our Total Customers have submitted for, received and clicked on
via our Even Financial marketplace. If a customer has funded multiple secured
personal loans or cash advances or received and clicked on multiple products via
our Even Financial marketplace, it is only counted once for each product type.
We consider Total Products to be a key performance metric as it can be used to
understand the usage of our products across our customer base. Total Products
were 9.0 million and 5.1 million as of March 31, 2022 and 2021, respectively.
Enterprise Partners Enterprise Partners is comprised ofProduct Partners andChannel Partners . We defineProduct Partners as financial institutions and financial service providers. We defineChannel Partners as organizations that allow us to reach a wide base of consumers, including but not limited to news sites, content publishers, product comparison sites and financial institutions.Enterprise Partners were 980 as ofMarch 31, 2022 , comprised of 424Product Partners and 556Channel Partners . Total Originations We define Total Originations as the dollar volume of the secured personal loans originated and cash advances funded within the stated period. We consider Total Originations to be a key performance metric as it can be used to measure the usage and engagement of the customers across our secured personal lending and Instacash products and is a significant driver of net interest income on finance receivables and service and subscription fees. Total Originations were$408 million and$189 million for the three months endedMarch 31, 2022 and 2021, respectively, and were originated directly byMoneyLion . 32 Adjusted Revenue Adjusted Revenue is defined as total revenue, net, plus amortization of loan origination costs less provision for loss on subscription receivables, provision for loss on fees receivables and revenue derived from phased out products. We believe that Adjusted Revenue provides a meaningful understanding of revenue from ongoing products and recurring revenue for comparability purposes. Adjusted Revenue is a non-GAAP measure and should not be viewed as a substitute for total revenue, net. Refer to the "Non-GAAP Measures" section below for further discussion.
Our Adjusted Revenue is further broken into the following categories:
Three Months Ended
March 31,
2022 2021
(in thousands)
Consumer $ 45,724 $ 31,489
Enterprise 20,753 996
Adjusted Revenue $ 66,477 $ 32,485
This breakdown of Adjusted Revenue across the categories of consumer revenue and
enterprise revenue helps provide our management with a better understanding of
Adjusted Revenue by type and may help to inform strategic pricing and resource
allocations across our products.
Adjusted Gross Profit and Adjusted EBITDA
Adjusted Gross Profit is defined as gross profit less revenue derived from phased out products. Adjusted EBITDA is defined as net income (loss) plus interest expense related to corporate debt, income tax expense (benefit), depreciation and amortization expense, change in fair value of warrants, change in fair value of subordinated convertible notes, change in fair value of contingent consideration from mergers and acquisitions, stock-based compensation and one-time expenses less origination financing cost of capital. We believe Adjusted Gross Profit and Adjusted EBITDA provide a meaningful understanding of an aspect of profitability based on our current product portfolio. These are non-GAAP measures and should not be viewed as a substitute for gross profit nor net income (loss). Refer to the "Non-GAAP Measures" section below for further discussion.
Results of Operations for the Three Months Ended
Revenues
The following table is reference for the discussion that follows.
Three Months Ended
March 31, Change
2022 2021 $ %
(In thousands, except for percentages)
Consumer revenuesService and subscription fees$ 46,394 $ 30,472 $ 15,922 52.3 % Net interest income on finance receivables 2,568 1,662
906 54.5 % Total consumer revenues 48,962 32,134 16,828 52.4 % Enterprise service revenues 20,752 996 19,756 1,983.5 % Total revenue, net$ 69,714 $ 33,130 $ 36,584 110.4 %
We generate revenues primarily from various product-related fees, providing membership subscriptions, performing enterprise services and originating loans.
Total revenues increased by$36.6 million , or 110.4%, to$69.7 million for the three months endedMarch 31, 2022 , as compared to$33.1 million for the same period in 2021.
Service and subscription fees
Service and subscription fees increased by$15.9 million , or 52.3%, to$46.4 million for the three months endedMarch 31, 2022 , as compared to$30.5 million for the same period in 2021. The increase in service and subscription fees were driven by increases in fee income related to instant transfer fees and tips from Instacash of$15.4 million driven by the growth of Instacash advances, across both existing and new customers, and an increase in subscription fees of$1.4 million due to an increased number of customers using the Credit Builder Plus membership program. These increases were partially offset by decreases in fee income related to interchange, cardholder and administration fees from our bank and investment accounts of$0.9 million driven by lower payment volume. 33
Net interest income on finance receivables
Net interest income on finance receivables is generated by interest earned on Credit Builder Plus loans, which is partially offset by the amortization of
loan origination costs. Net interest income on finance receivables increased by$0.9 million , or 54.5%, to$2.6 million for the three months endedMarch 31, 2022 , as compared to$1.7 million for the same period in 2021. The increase in net interest income on finance receivables was driven by an over 40% year-over-year origination growth on our Credit Builder Plus loan program across both existing and new customers. The amortization of loan origination costs increased by$0.1 million to$0.3 million for the three months endedMarch 31, 2022 , as compared to$0.2 million for the same period in 2021. Enterprise service revenues Enterprise service revenues increased by$19.8 million , or 1,983.5%, to$20.8 million for the three months endedMarch 31, 2022 , as compared to$1.0 million for the same period in 2021. This increase was primarily attributable to the acquisitions of Even Financial and MALKA, which significantly expanded the Company's affiliate marketing platform, number of enterprise partners and digital media and content production services. Operating Expenses
The following table is reference for the discussion that follows:
Three Months Ended
March 31, Change
2022 2021 $ %
(In thousands, except for percentages)
Operating expenses
Provision for credit losses on consumer
receivables 23,044 5,708 17,336 303.7 %
Compensation and benefits 22,043 7,057 14,986 212.4 %
Marketing 11,416 4,363 7,053 161.7 %
Direct costs 21,204 9,903 11,301 114.1 %
Professional services 7,288 3,586 3,702 103.2 %
Technology-related costs 4,505 2,199 2,306 104.9 %
Other operating expenses 10,769 1,082 9,687 895.3 %
Total operating expenses 100,269 33,898 66,371 195.8 %
Other (expense) income
Interest expense (6,174 ) (1,471 ) (4,703 ) 319.7 %
Change in fair value of warrant
liability 3,910 (31,230 ) 35,140 nm
Change in fair value of subordinated
convertible notes - (39,939 ) 39,939 nm
Change in fair value of contingent
consideration from mergers and
acquisitions (682 ) - (682 ) nm
Other (expense) income (916 ) 27 (943 ) nm
Total other (expense) income (3,862 ) (72,613 ) 68,751 -94.7 %
Income tax (benefit) expense (28,417 ) 25 (28,442 ) nm
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Our operating expenses consist of the following:
Provision for credit losses on consumer receivables
Provision for credit losses on consumer receivables consists of amounts charged during the period to maintain an allowance for credit and advance losses. The allowance represents management's estimate of the credit losses in our consumer receivable portfolio and is based on management's assessment of many factors, including changes in the nature, volume and risk characteristics of the consumer receivables portfolio, including trends in delinquency and charge-offs and current economic conditions that may affect the customer's ability to pay. Provision for credit losses on consumer receivables increased by$17.3 million , or 303.7%, to$23.0 million for the three months endedMarch 31, 2022 , as compared to$5.7 million for the same period in 2021. This increase resulted primarily from an increase to provision related to Instacash advance receivables of$12.5 million , Instacash instant transfer fees and tips of$1.4 million and Credit Builder Plus loan receivables of$1.7 million , evidenced by the increase in Total Originations from approximately$189 million for the three months endedMarch 31, 2021 compared to approximately$408 million for the same period in 2022. Provision related to subscription fees increased by$1.3 million . Related to the ML Plus loans, a legacy product we transitioned from in the second quarter of 2020, the provision decreased by$0.4 million . Compensation and benefits Compensation and benefits increased by$15.0 million , or 212.4%, to$22.0 million for the three months endedMarch 31, 2022 , as compared to$7.1 million for the same period in 2021. This increase was driven primarily by$7.0 million of additional compensation and benefits expenses attributable to the acquisitions of Even Financial and MALKA, an increase in stock-based compensation of$2.9 million and a$1.2 million increase in discretionary incentive bonuses due to increased headcount throughout 2021. Marketing Marketing increased by$7.1 million , or 161.7%, to$11.4 million for the three months endedMarch 31, 2022 , as compared to$4.4 million for the same period in 2021. This increase resulted primarily from an increase in costs related to advertising through digital platforms of$3.4 million and other marketing-related activities of$3.8 million . Direct costs Direct costs increased by$11.3 million , or 114.1%, to$21.2 million for the three months endedMarch 31, 2022 , as compared to$9.9 million for the same period in 2021. The increase was primarily driven by$10.5 million of direct costs related to Even and MALKA,$2.2 million of increased payment processing fees and$0.7 million of increased underwriting expenses driven by growth in total originations and total customers; partially offset by a$2.1 million decrease in costs related to our bank account offering. Professional services
Professional services increased by$3.7 million , or 103.2%, to$7.3 million for the three months endedMarch 31, 2022 , as compared to$3.6 million for the same period in 2021. This increase resulted primarily from an increase in fees related to accounting and consulting services of$1.8 million and legal services of$1.6 million , supporting our public reporting and other transaction-related requirements. Technology-related costs Technology-related costs increased by$2.3 million , or 104.9%, to$4.5 million for the three months endedMarch 31, 2022 , as compared to$2.2 million for the same period in 2021. This increase resulted primarily from an increase in costs related to internet hosting expenses of$0.6 million , software licenses and subscriptions of$0.8 million and depreciation and amortization related to equipment and software of$0.5 million . 35 Other operating expenses
Other operating expenses increased by$9.7 million to$10.8 million for the three months endedMarch 31, 2022 , as compared to$1.1 million for the same period in 2021. The increase was driven by$2.4 million of additional amortization expenses which was primarily attributable to the acquisitions of Even Financial and MALKA,$2.0 million of insurance-related expenses,$1.7 million related to a reserve for costs related to ongoing legal matters, and$1.8 million for other general operating expenses.
Our other (expense) income consists of the following:
Interest expense
Interest expense increased by$4.7 million , or 319.7%, to$6.2 million for the three months endedMarch 31, 2022 , as compared to$1.5 million for the same period in 2021. This increase resulted from an increase in average debt outstanding during the three months endedMarch 31, 2022 compared to the same period in 2021. See Part I, Item 1 "Financial Statements - Debt" for more information.
Change in fair value of warrant liability
Change in fair value of warrant liability was a benefit of$3.9 million for the three months endedMarch 31, 2022 , as compared to an expense of$31.2 million for the same period in 2021. The change in fair value of warrant liability was due to changes in inputs that drive the warrant liability fair value calculations.
Change in fair value of subordinated convertible notes
Change in fair value of subordinated convertible notes had no expense for the three months endedMarch 31, 2022 compared to an expense of$39.9 million for the three months endedMarch 31, 2021 . There was no activity for the three months endedMarch 31, 2022 because the subordinated convertible notes were converted into common stock immediately prior to the Business Combination Closing inSeptember 2021 ; the noteholders subsequently received shares of MoneyLion Class A Common Stock upon the Business Combination Closing.
Change in fair value of contingent consideration from mergers and acquisitions
Change in fair value of contingent consideration from mergers and acquisitions was an expense of$0.7 million for the three months endedMarch 31, 2022 , as compared to zero for the same period in 2021. No contingent consideration from mergers and acquisitions was outstanding for the three months endedMarch 31, 2021 . Other (expense) income Other (expense) income decreased by$0.9 million to other expense of$0.9 million for the three months endedMarch 31, 2022 , as compared to$0.0 million for the same period in 2021. The majority of other expense in the three months endedMarch 31, 2022 was related to expenses from debt transactions during
the period.
Income tax (benefit) expense
See Part I, Item 1 "Financial Statements - Income Taxes" for an explanation of the significant income tax benefit recorded during the three months endedMarch 31, 2022 . 36 Non-GAAP Measures In addition to total revenue, net, net income (loss) and gross profit, which are measures presented in accordance withU.S. GAAP, management believes that Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA provide relevant and useful information which is widely used by analysts, investors and competitors in our industry in assessing performance. Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are supplemental measures ofMoneyLion's performance that are neither required by nor presented in accordance withU.S. GAAP. Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA should not be considered as substitutes forU.S. GAAP metrics such as total revenue, net, net income (loss), gross profit or any other performance measures derived in accordance withU.S. GAAP and may not be comparable to similar measures used by other companies.
We define Adjusted Revenue as total revenue, net plus amortization of loan origination costs less provision for loss on subscription receivables, provision for loss on fees receivables and revenue derived from phased out products. The definition of Adjusted Revenue previously removed non-operating income, which has been moved out of total revenue, net and into other (expense) income as part of our GAAP financial statement reclassification. We believe that Adjusted Revenue provides a meaningful understanding of revenue from ongoing products and recurring revenue for comparability purposes. We define Adjusted Gross Profit as gross profit less revenue derived from phased out products. The definition of Adjusted Gross Profit previously removed non-operating income, which has been moved out of total revenue, net and into other (expense) income as part of our GAAP financial statement reclassification. We define Adjusted EBITDA as net income (loss) plus interest expense related to corporate debt, income tax expense (benefit), depreciation and amortization expense, change in fair value of warrant liability, change in fair value of subordinated convertible notes, change in fair value of contingent consideration from mergers and acquisitions, stock-based compensation and one-time expenses less origination financing cost of capital. We believe that these measures provide a meaningful understanding of an aspect of profitability based on our current product portfolio.
Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are useful to an investor in evaluating our performance because these measures:
, are widely used by investors to measure a company’s operating performance;
, are metrics used by rating agencies, lenders and other parties to evaluate our
credit worthiness; and
, are used by our management for various purposes, including as measures of
performance and as a basis for strategic planning and forecasting.
The reconciliation of total revenue, net to Adjusted Revenue for the three months ended
Three Months Ended
March 31,
2022 2021
(in thousands)
Total revenues, net $ 69,714 $ 33,130
Add back:Amortization of loan origination costs1 324
81
Less:
Provision for credit losses on receivables - subscription receivables2 (1,541 ) (234 ) Provision for credit losses on receivables - fees receivables3 (2,001 ) (615 ) Revenue derived from products that have been phased out4 (20 )
124 Adjusted Revenue$ 66,477 $ 32,485
(1) Amortization of loan origination costs are included within net interest
income from finance receivables.
(2) We deduct provision for credit losses on receivables related to subscription
receivables from total revenue, net as it is related to revenue-based
receivables. For
receivables related to subscription receivables is included within provision
for loss on receivables on the statement of operations. Refer to Part I, Item
1 “Financial Statements – Summary of Significant Accounting Policies” for
further discussion.
(3) We deduct provision for credit losses on receivables related to fees
receivables from total revenue, net as it is related to revenue-based
receivables. For
receivables related to fees receivables is included within provision for loss
on receivables on the statement of operations. Refer to Part I, Item 1
“Financial Statements – Summary of Significant Accounting Policies” for
further discussion.
(4) Revenue derived from products that have been phased out includes net interest
income and fees related to unsecured personal loans, which are included
within net interest income from finance receivables and fee income,
respectively. Revenue from unsecured personal loans was zero and
million for the three months ended
37
The reconciliation of gross profit, which is prepared in accordance with U.S.
GAAP, to Adjusted Gross Profit for the three months ended March 31, 2022 and
2021 is as follows:
Three Months Ended
March 31,
2022 2021
(in thousands)
Total revenue, net $ 69,714 $ 33,130
Less:
Cost of Sales
Direct costs (21,204 )(9,903 ) Provision for credit losses on receivables – subscription receivables1
(1,541 ) (234 ) Provision for credit losses on receivables - fees receivables2 (2,001 ) (615 ) Technology related costs (2,461 ) (1,406 ) Professional services (1,056 ) (741 ) Compensation and benefits (1,014 ) (886 ) Other operating expenses (104 ) (50 ) Gross Profit$ 40,333 $ 19,294 Less:
Revenue derived from products that have been phased out3 (20 )
124 Adjusted Gross Profit$ 40,314 $ 19,418
(1) We deduct provision for credit losses on receivables related to subscription
receivables from total revenue, net as it is related to revenue-based
receivables. For
receivables related to subscription receivables is included within provision
for loss on receivables on the statement of operations. Refer to Part I, Item
1 “Financial Statements – Summary of Significant Accounting Policies” for
further discussion.
(2) We deduct provision for credit losses on receivables related to fees
receivables from total revenue, net as it is related to revenue-based
receivables. For
receivables related to fees receivables is included within provision for loss
on receivables on the statement of operations. Refer to the Part I, Item 1
“Financial Statements – Summary of Significant Accounting Policies” for
further discussion.
(3) Revenue derived from products that have been phased out includes net interest
income and fees related to unsecured personal loans, which are included
within net interest income from finance receivables and fee income,
respectively. Revenue from unsecured personal loans was zero and
million for the three months ended
38
The reconciliation of net loss, which is prepared in accordance with U.S. GAAP,
to Adjusted EBITDA for the three months ended March 31, 2022 and 2021 is as
follows:
Three Months Ended
March 31,
2022 2021
(in thousands)
Net income (loss) $ (6,000 ) $ (73,406 )
Add back:Interest related to corporate debt1 1,387
1,471
Income tax expense (benefit) (28,417 )
25
Depreciation and amortization expense 3,421
514
Changes in fair value of warrant liability (3,910 )
31,230
Changes in fair value of subordinated convertible notes -
39,939
Change in fair value of contingent consideration from mergers and acquisitions
682
,
Stock-based compensation expense 3,268
518
One-time expenses2 4,777
1,262
Less:
Origination financing cost of capital3 -
(2,767 ) Adjusted EBITDA$ (24,792 ) $ (1,213 )
(1) We add back the interest expense related to all outstanding corporate debt,
excluding outstanding principal balances related to the Roar 1 SPV Credit
Facility and the Roar 2 SPV Credit Facility. For
purposes, interest expense related to corporate debt is included within
interest expense in the statement of operations.
(2) We add back other one-time expenses, including those related to transactions,
including mergers and acquisitions and financings, that occurred,
litigation-related expenses and non-recurring costs or gains. Generally,
these expenses are included within other expenses or professional fees in the
statement of operations.
(3) Origination financing cost of capital represents the preferred return
attributable to IIA investors. This is included within temporary equity on
historical consolidated balance sheets. Since we transitioned away from IIA
inDecember 2021 , this will have no impact on our Adjusted EBITDA going forward.
Changes in Financial Condition to
March 31, December 31, Change
2022 2021 $ %
Assets
Cash and restricted cash $ 248,987 $ 246,224 $ 2,763 1.1 %
Consumer receivables 153,634 153,741 (107 ) -0.1 %
Allowance for credit losses on consumer
receivables (22,291 ) (22,323 ) 32 -0.1 %
Consumer receivables, net 131,343 131,418 (75 ) -0.1 %
Enterprise receivables 14,207 6,002 8,205 136.7 %
Property and equipment, net 2,140 1,801 339 18.8 %Goodwill and intangible assets, net 374,626 77,665
296,961 382.4 % Other assets 37,932 28,428 9,504 33.4 % Total assets$ 809,235 $ 491,538 $ 317,697 64.6 % Liabilities and Stockholders' Equity Liabilities: Debt agreements 240,915 186,591 54,324 29.1 % Accounts payable and accrued liabilities 43,933 36,868
7,065 19.2 % Warrant liability 4,350 8,260 (3,910 ) -47.3 % Other liabilities 81,948 26,585 55,363 208.2 % Total liabilities 371,146 258,304 112,842 43.7 % Redeemable convertible preferred stock (Series A) 194,675 - 194,675 nm Stockholders' equity: Common Stock 24 23 1 4.3 % Additional paid-in capital 723,394 708,175 15,219 2.1 % Accumulated deficit (470,304 ) (465,264 ) (5,040 ) 1.1 % Treasury stock (9,700 ) (9,700 ) - 0.0 % Total stockholders' equity 243,414 233,234 10,180 4.4 % Total liabilities, redeemable convertible preferred stock and stockholders' equity$ 809,235 $ 491,538 $ 317,697 64.6 % 39 Assets Cash and restricted cash Cash and restricted cash increased by$2.8 million , or 1.1%, to$249.0 million as ofMarch 31, 2022 , as compared to$246.2 million as ofDecember 31, 2021 . Refer to the "Cash Flows" section below for further discussion on the net cash provided by (used in) operating activities, investing activities and financing activities during the period. Consumer receivables, net
Consumer receivables, net remained stable at$131.3 million as ofMarch 31, 2022 , as compared to$131.4 million as ofDecember 31, 2021 . The decrease in loan receivables fromDecember 31, 2021 toMarch 31, 2022 was mostly offset by increases in Instacash receivables. Enterprise receivables Enterprise receivables increased by$8.2 million , or 136.7%, to$14.2 million as ofMarch 31, 2022 , as compared to$6.0 million as ofDecember 31, 2021 . This increase was primarily attributable to the acquisition of Even Financial, which significantly expanded the Company's affiliate marketing platform and number ofEnterprise Partners .
Goodwill and intangible assets, net increased by$297.0 million , or 382.4%, to$374.6 million as ofMarch 31, 2022 , as compared to$77.7 million as ofDecember 31, 2021 . This increase was attributable to the Even Acquisition, which closed in the first quarter of 2022. Other assets Other assets increased by$9.5 million , or 33.4%, to$37.9 million as ofMarch 31, 2022 , as compared to$28.4 million as ofDecember 31, 2021 . This was primarily attributable to the new lease accounting standard adopted during the first quarter of 2022 which resulted in an operating lease right-of-use asset of$8.7 million as ofMarch 31, 2022 . Liabilities Debt agreements
Debt agreements increased by$54.3 million , or 29.1%, to$240.9 million as ofMarch 31, 2022 , as compared to$186.6 million as ofDecember 31, 2021 . Refer to the Part I, Item 1 "Financial Statements - Debt" for further discussion on financing transactions during the period.
Accounts payable and accrued expenses
Accounts payable and accrued expenses increased by$7.1 million , or 19.2%, to$43.9 million as ofMarch 31, 2022 , as compared to$36.9 million as ofDecember 31, 2021 , which was primarily attributable to new accounts payable and accruals of$10.1 million associated with Even Financial, which the Company acquired during the first quarter of 2022. Warrant liability Warrant liability decreased by$3.9 million , or 47.3%, to$4.4 million as ofMarch 31, 2022 , as compared to$8.3 million as ofDecember 31, 2021 . Refer to the "Results of Operations for the Three Months EndedMarch 31, 2022 and 2021" section above for further discussion on the change in fair value of warrant
liability. Other liabilities Other liabilities increased by$55.4 million , or 208.2%, to$81.9 million as ofMarch 31, 2022 , as compared to$26.6 million as ofDecember 31, 2021 . The increase was primarily attributable to an increase in liabilities related to contingent consideration from mergers and acquisitions of$46.1 million primarily related to the Even Acquisition and an increase from the new lease accounting standard adopted during the first quarter of 2022 which resulted in operating lease liability of$8.7 million as ofMarch 31, 2022 . 40
Liquidity and Capital Resources
As a result of the Business Combination, we raised net proceeds of$293.2 million , including the contribution of cash held in Fusion's trust account from its initial public offering of$91.1 million , post redemption of Fusion's common stock held by Fusion's public stockholders prior to the Business Combination, and$250.0 million of private investment in public equity ("PIPE") at$10.00 per share of MoneyLion Class A Common Stock, net of transaction expenses. Prior to the Business Combination, the funds received from previous common stock and redeemable convertible preferred stock equity financings, as well as the Company's ability to obtain lending commitments, provided the liquidity necessary for the Company to fund its operations. We believe our existing cash and cash equivalents and cash flows from operating activities will be sufficient to meet our operating working capital needs for at least the next twelve months. Our future financing requirements will depend on several factors including our growth, the timing and level of spending to support continued development of our platform, the expansion of marketing activities and merger and acquisition activity. In addition, growth of our finance receivables increases our liquidity needs, and any failure to meet those liquidity needs could adversely affect our business. Additional funds may not be available on terms favorable to us or at all. If the Company is unable to generate positive operating cash flows, additional debt and equity financings or refinancing of existing debt financings may be necessary to sustain future operations. Receivables originated on our platform, including Credit Builder Plus loans and Instacash advances, were primarily financed through IIA until the end of the fourth quarter of 2021. Beginning in the fourth quarter of 2021,MoneyLion transitioned its primary source of funding for originated receivables from IIA to special purpose vehicle financings from third-party institutional lenders. As ofMarch 31, 2022 , there was an outstanding principal balance of$83 million under the ROAR 1 SPV Credit Facility and an outstanding principal balance of$73 million under the ROAR 2 SPV Credit Facility. See Part I, Item 1 "Financial Statements - Variable Interest Entities" for more information on the ROAR 1 SPV Credit Facility and ROAR 2 SPV Credit Facility.
The following table presents the Company’s cash, restricted cash and receivable from payment processor, as of
March 31, December 31,
2022 2021
Cash $ 185,009 $ 201,763
Restricted cash 63,978 44,461Receivable from payment processor
Cash Flows
The following table presents cash (used in) provided by operating, investing and financing activities during the three months ended
Three Months Ended
March 31,
2022 2021Net cash (used in) provided by operating activities
Net cash used in investing activities
(42,279 ) (15,145 ) Net cash provided by financing activities 53,693
50,743
Net increase in cash and restricted cash$ 2,763 $ 38,889 41 Operating Activities
Net cash used in operating activities was$8.7 million for the three months endedMarch 31, 2022 compared to net cash provided by operating activities of$3.3 million for the three months endedMarch 31, 2021 . This was primarily driven by a decrease in profitability, after adjusting for non-cash activity included in our net loss, of approximately$13.1 million during the three months endedMarch 31, 2022 compared to the three months endedMarch 31, 2021 , primarily as the result of increases in operating expenses and interest expense, which were partially offset by increases in net revenues and changes in working capital. Investing Activities
Net cash used in investing activities was$42.3 million and$15.1 million for the three months endedMarch 31, 2022 and 2021, respectively. The increase in cash used in investing activities was primarily related to a$7.8 million increase in net originations and collections of finance receivables and$18.6 million spent on the Even Acquisition, net of cash received, during the three months endedMarch 31, 2022 . Financing Activities Net cash provided by financing activities was$53.7 million and$50.7 million for the three months endedMarch 31, 2022 and 2021, respectively. The increase in cash provided by financing activities was primarily attributable to an increase in net proceeds from financing sources during the three months endedMarch 31, 2022 . Financing Arrangements
Refer to the Part I, Item 1 “Financial Statements – Debt” for further discussion on financing transactions during the period.
Contractual Obligations
The table below summarizes debt, lease and other long-term minimum cash obligations outstanding as of
Remainder
Total 2022 2023 - 2024 2025 - 2026 Thereafter
Monroe Term Loans 90,000 - 20,000 70,000 -ROAR 1 SPV Credit Facility 83,000 - - 83,000 - ROAR 2 SPV Credit Facility 73,000 - - 73,000 - Operating lease obligations 12,722 1,733 5,553 3,764 1,672 Total$ 258,722 $ 1,733 $ 25,553 $ 229,764 $ 1,672
Secured Loans and Other Debt
For more information regarding our secured loans and other debt, see Part I, Item 1 “Financial Statements – Debt” in this Quarterly Report on Form 10-Q.
42
Equity
Series A Redeemable Convertible Preferred Stock
In connection with the acquisition of Even Financial, the Company issued 28,693,931 shares of Series A Redeemable Convertible Preferred Stock. For more information regarding the Series A Redeemable Convertible Preferred Stock, see Part I, Item 1 "Financial Statements - Common and Preferred Stock."
Off-Balance Sheet Arrangements
At
Critical Accounting Policies and Estimates
See Part I, Item 1 “Financial Statements – Summary of Significant Accounting Policies” for a description of critical accounting policies and estimates.
Recently Issued and Adopted Accounting Pronouncements
See Part I, Item 1 "Financial Statements - Summary of Significant Accounting Policies" for a description of recently issued accounting pronouncements that may potentially impact our results of operations, financial condition or cash flows.
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