Delaware | 6770 | 84-2266022 | ||||
(State or Other Jurisdiction of Incorporation or Organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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II-1 |
Resale of Common Stock | ||
Shares of Common Stock offered by the Selling Securityholders | |||
Use of proceeds | We will not receive any proceeds from the resale of the Common Stock |
Lock-up agreements | Certain of our stockholders, including the Selling Securityholders, are subject to certain restrictions on transfer until the termination of applicable lock-up periods. See “Securities Act Restrictions on Resale of Securities — Locked-up Common Stock | |
Nasdaq Ticker symbols | “LFLY” and “LFLYW” for the Common Stock and the Warrants, respectively. |
(1) | Without including the effect of outstanding Warrants, options, the Earn Out Shares, or any further financing of Merida or Legacy Leafly, immediately after the closing of the Business Combination, Legacy Leafly’s existing securityholders have the greatest voting interest in the Company with approximately 86% voting interest; |
(2) | Legacy Leafly has the ability to nominate the majority of the members of the board of directors of the Company following the Closing; and |
(3) | Legacy Leafly’s senior management are the senior management of the Company. |
Shares | % | |||||||
Merida public stockholders (1) | 4,160 | 10.1 | ||||||
Merida initial stockholders (including Sponsor and EBC) (2) | 1,667 | 4.0 | ||||||
Merida convertible noteholders | 38 | 0.1 | ||||||
Total Merida | 5,865 | 14.2 | ||||||
Legacy Leafly existing securityholders (3) | 35,434 | 85.8 | ||||||
Weighted average shares outstanding, basic and diluted pro forma | 41,299 | 100.0 |
(1) | Includes an aggregate of 28 Sponsor Shares transferred by Sponsor to public stockholders pursuant to the Non-Redemption Agreements, the Share Transfer,Non-Redemption and Forward Purchase Agreements. Also includes 3,861 shares subject to the Share Transfer,Non-Redemption and Forward Purchase Agreements. |
(2) | No Sponsor Shares were forfeited pursuant to the Sponsor Agreement. This row reflects that (a) of the 3,250 Sponsor Shares initially held by Sponsor, 1,625 Sponsor Shares (equal to 50% of the 3,250 Sponsor Shares issued to Sponsor prior to Merida’s initial public offering) vested upon the closing of the Mergers and (b) all 120 Representative Shares vested upon the closing of the Mergers, (c) 28 vested Sponsor Shares were transferred to the public stockholders pursuant to the Share Transfer, Non-Redemption and Forward Purchase Agreements and (d) 38 vested Sponsor Shares were transferred to the Note Investors pursuant to the Convertible Note Purchase Agreement and (e) 13 shares were forfeited pursuant to the Side Letter. |
(3) | Amount represents approximately 25,166 shares converted from Legacy Leafly Common Stock, 6,141 shares converted from Legacy Leafly preferred stock, and 4,128 shares converted from Legacy Leafly convertible notes. |
(1) | In the Initial Merger, Merger Sub I merged with and into Legacy Leafly, with Legacy Leafly being the surviving entity of the Initial Merger, and immediately following the Initial Merger and as a part of the same overall transaction as the Initial Merger, in the Final Merger Legacy Leafly merged with and into Merger Sub II, with Merger Sub II being the surviving entity of the Final Merger and a fully-owned subsidiary of Merida; |
(2) | the conversion of Pre-Closing Convertible Promissory Notes to Legacy Leafly Common Stock immediately prior to the Closing in accordance with the Legacy Leafly charter and then approximately 12,573 shares of Common Stock at the Closing in accordance with the Merger Agreement; and |
(3) | the conversion of 18,702 shares of Legacy Leafly preferred stock to approximately 6,141 shares of Common Stock at the Closing in accordance with the Merger Agreement. |
(1) | Pursuant to the Convertible Note Purchase Agreement, Merida issued $30,000 in aggregate principal amount of Convertible Notes, immediately prior to the closing of the Business Combination. The Convertible Notes bear interest at a rate of 8.00% per annum, paid in cash semi-annually in arrears on July 31 and January 31 of each year, and will mature on January 31, 2025 (the “Maturity Date”). The Convertible Notes are convertible into approximately 2,400 shares of Common Stock at an initial conversion rate of 0.08 shares of Common Stock per $1 principal amount of Convertible Notes and 0.08 shares of Common Stock per $1 amount of accrued and unpaid |
interest, if any, thereon, subject to adjustment for customary events prior to the Maturity Date which is equivalent to an initial conversion price of $12.50 per share (such conversion price not in thousands). Conversion of the Convertible Notes, together with any accrued and unpaid interest, if any, at the time of conversion will be settled in shares of Common Stock. In addition, pursuant to the Convertible Note Purchase Agreement, the Sponsor transferred, for no additional consideration, 38 Sponsor Shares and 300 Private Warrants to the Note Investors. |
(2) | Pursuant to the Share Transfer, Non-Redemption and Forward Purchase Agreements, the public stockholders party thereto agreed not to seek redemption of up to 1,286 public shares, originally issued in Merida’s initial public offering (the “Public Shares”), in connection with the special meeting. The Share Transfer,Non-Redemption and Forward Purchase Agreements additionally provide that, immediately after the closing of the transactions contemplated by the Merger Agreement, the Sponsor transferred to the public stockholders an aggregate of 1 Sponsor Shares beneficially owned by it (or its designees) for every 45 Public Shares (such Public Shares not in thousands) not redeemed by the public stockholders at the special meeting and held at the closing, which equated to 28 shares transferred. |
(3) | Pursuant to the Share Transfer, Non-Redemption and Forward Purchase Agreements, the public stockholders party thereto agreed not to seek redemption of up to 2,575 Public Shares in connection with the special meeting. |
(4) | Further, pursuant to the Non-Redemption Agreements and the Share Transfer,Non-Redemption and Forward Purchase Agreements, the Company deposited in escrow, $39,032 of cash released from the trust. |
Historical | ||||||||||||||||||||
(in thousands) | Merida | Legacy Leafly | Transaction Accounting Adjustments | Pro Forma Combined | ||||||||||||||||
Assets | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 176 | $ | 28,565 | $ | 18,333 | a,b,d | $ | 47,074 | |||||||||||
Accounts receivable, net | — | 2,958 | — | 2,958 | ||||||||||||||||
Deferred transaction costs | — | 2,840 | (2,840 | ) | b | — | ||||||||||||||
Prepaid expenses and other current assets | 182 | 1,347 | — | 1,529 | ||||||||||||||||
Restricted cash | — | 130 | 39,032 | a | 39,162 | |||||||||||||||
Total current assets | 358 | 35,840 | 54,525 | 90,723 | ||||||||||||||||
Cash and marketable securities held in trust account | 90,849 | — | (90,849 | ) | a,c,e | — | ||||||||||||||
Property and equipment, net | — | 313 | — | 313 | ||||||||||||||||
Deposits and other assets | — | — | — | — | ||||||||||||||||
Total assets | $ | 91,207 | $ | 36,153 | $ | (36,324 | ) | $ | 91,036 | |||||||||||
Liabilities and Stockholders Deficit | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 1,602 | $ | 3,048 | $ | (1,985 | ) | b | $ | 2,665 | ||||||||||
Accrued expenses | — | 8,325 | (1,313 | ) | d | 7,012 | ||||||||||||||
Related party payables | 817 | — | (817 | ) | c | — | ||||||||||||||
Deferred revenue | — | 1,975 | — | 1,975 | ||||||||||||||||
Convertible promissory notes | — | 31,377 | (2,754 | ) | d | 28,623 | ||||||||||||||
Total current liabilities | 2,419 | 44,725 | (6,869 | ) | 40,275 | |||||||||||||||
Derivative liability | 2,175 | — | — | 2,175 | ||||||||||||||||
Warrant liability | 6,982 | — | — | 6,982 | ||||||||||||||||
Total liabilities | 11,576 | 44,725 | (6,869 | ) | 49,432 | |||||||||||||||
Redeemable common stock | 90,831 | — | (90,831 | ) | e | — | ||||||||||||||
Stockholders equity | ||||||||||||||||||||
Series A preferred stock | — | 2 | (2 | ) | f | — | ||||||||||||||
Common stock | — | 8 | — | e,f,g | 8 | |||||||||||||||
Additional paid-in-capital | — | 61,188 | 50,421 | 111,609 | ||||||||||||||||
Accumulated deficit | (11,200 | ) | (69,770 | ) | 10,957 | (70,013 | ) | |||||||||||||
Total stockholders equity | (11,200 | ) | (8,572 | ) | 61,376 | 41,604 | ||||||||||||||
Total liabilities and stockholders equity | $ | 91,207 | $ | 36,153 | $ | (36,324 | ) | $ | 91,036 | |||||||||||
(in thousands) | Merida | Legacy Leafly | Transaction Accounting Adjustments | Pro Forma Combined | ||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 176 | $ | 28,565 | $ | 18,333a,b,d | $ | 47,074 | ||||||||
Accounts receivable, net | — | 2,958 | — | 2,958 | ||||||||||||
Deferred transaction costs | — | 2,840 | (2,840 | )b | — | |||||||||||
Prepaid expenses and other current assets | 182 | 1,347 | — | 1,529 | ||||||||||||
Restricted cash | — | 130 | 39,032a | 39,162 | ||||||||||||
Total current assets | 358 | 35,840 | 54,525 | 90,723 | ||||||||||||
Cash and marketable securities held in trust account | 90,849 | — | (90,849 | )a,c,e | — | |||||||||||
Property and equipment, net | — | 313 | — | 313 | ||||||||||||
Deposits and other assets | — | — | — | — | ||||||||||||
Total assets | $ | 91,207 | $ | 36,153 | $ | (36,324 | ) | $ | 91,036 | |||||||
Liabilities and Stockholders Deficit | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,602 | $ | 3,048 | $ | (1,985 | )b | $ | 2,665 | |||||||
Accrued expenses | — | 8,325 | (1,313 | )d | 7,012 | |||||||||||
Related party payables | 817 | — | (817 | )c | — | |||||||||||
Deferred revenue | — | 1,975 | — | 1,975 | ||||||||||||
Convertible promissory notes | — | 31,377 | (2,754 | )d | 28,623 | |||||||||||
Total current liabilities | 2,419 | 44,725 | (6,869 | ) | 40,275 | |||||||||||
Derivative liability | 2,175 | — | — | 2,175 | ||||||||||||
Warrant liability | 6,982 | — | — | 6,982 | ||||||||||||
Total liabilities | 11,576 | 44,725 | (6,869 | ) | 49,432 | |||||||||||
Redeemable common stock | 90,831 | — | (90,831 | )e | — | |||||||||||
Stockholders equity | ||||||||||||||||
Series A preferred stock | — | 2 | (2 | )f | — | |||||||||||
Common stock | — | 8 | — | e,f,g | 8 | |||||||||||
Additional paid-in-capital | — | 61,188 | 50,421 | 111,609 | ||||||||||||
Accumulated deficit | (11,200 | ) | (69,770 | ) | 10,957 | (70,013 | ) | |||||||||
Total stockholders equity | (11,200 | ) | (8,572 | ) | 61,376 | 41,604 | ||||||||||
Total liabilities and stockholders equity | $ | 91,207 | $ | 36,153 | $ | (36,324 | ) | $ | 91,056 | |||||||
(in thousands) | Transaction Accounting Adjustments | Transaction Accounting Adjustments | ||||||||||
Additional paid-in-capital | ||||||||||||
Transaction costs | $ | (13,697 | ) | b | $ | (13,697 | )b | |||||
Conversion of convertible notes | 31,469 | d | 31,469 | d | ||||||||
Warrants and shares transferred to Convertible Notes holders | 924 | d | 924 | d | ||||||||
Reclass of Merida redeemable stock | 41,365 | e | 41,365 | e | ||||||||
Conversion of Legacy Leafly preferred stock and Legacy Leafly Common Stock | 4 | f,g | 4 | f,g | ||||||||
Reclass of Merida’s historical accumulated deficit | (11,200 | ) | h | (11,200 | )h | |||||||
Modification of CEO options | 1,556 | aa | 1,556 | aa | ||||||||
Total additional paid-in capital | $ | 50,421 | ||||||||||
Accumulated deficit | ||||||||||||
Reclass Merida’s historical accumulated deficit | $ | 11,200 | h | |||||||||
Elimination of interest expense on Convertible Notes | 1,313 | dd | ||||||||||
Modification of CEO options | (1,556 | ) | aa | |||||||||
Total accumulated deficit | $ | 10,957 |
(in thousands) | Transaction Accounting Adjustments | |||
Total additional paid-in capital | $ | 50,421 | ||
Accumulated deficit | ||||
Reclass Merida’s historical accumulated deficit | $ | 11,200 | h | |
Elimination of interest expense on Convertible Notes | 1,313 | dd | ||
Modification of CEO options | (1,556 | )aa | ||
Total accumulated deficit | $ | 10,957 |
Historical | ||||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | Merida (as Restated) | Legacy Leafly | Transaction Accounting Adjustments | Pro Forma Combined | Merida (as Restated) | Legacy Leafly | Transaction Accounting Adjustments | Pro Forma Combined | ||||||||||||||||||||||||||||
Revenue | $ | — | $ | 43,036 | $ | — | $ | 43,036 | $ | — | $ | 43,036 | $ | — | $ | 43,036 | ||||||||||||||||||||
Cost of revenue | — | 4,983 | — | 4,983 | — | 4,983 | — | 4,983 | ||||||||||||||||||||||||||||
Gross profit | — | 38,053 | — | 38,053 | — | 38,053 | — | 38,053 | ||||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||
Sales and marketing | — | 19,640 | — | 19,640 | — | 19,640 | — | 19,640 | ||||||||||||||||||||||||||||
Product development | — | 13,896 | — | 13,896 | — | 13,896 | — | 13,896 | ||||||||||||||||||||||||||||
General and administrative | 2,699 | 15,142 | 1,512 | aa,bb | 19,353 | 2,699 | 15,142 | 1,512 | aa,bb | 19,353 | ||||||||||||||||||||||||||
Total operating expenses | 2,699 | 48,678 | 1,512 | 52,889 | 2,699 | 48,678 | 1,512 | 52,889 | ||||||||||||||||||||||||||||
Loss from operations | (2,699 | ) | (10,625 | ) | (1,512 | ) | (14,836 | ) | (2,699 | ) | (10,625 | ) | (1,512 | ) | (14,836 | ) | ||||||||||||||||||||
Interest income (expense), net and unrealized gain | 29 | (1,349 | ) | (2,299 | ) | cc,dd | (3,619 | ) | 29 | (1,349 | ) | (2,299 | )cc,dd | (3,619 | ) | |||||||||||||||||||||
Change in fair values of derivative liabilities | (3,032 | ) | — | 64 | ff | (2,968 | ) | (3,032 | ) | — | 64 | ff | (2,968 | ) | ||||||||||||||||||||||
Other expense, net | — | (50 | ) | — | (50 | ) | — | (50 | ) | — | (50 | ) | ||||||||||||||||||||||||
Loss before income taxes | (5,702 | ) | (12,024 | ) | (3,747 | ) | (21,473 | ) | (5,702 | ) | (12,024 | ) | (3,747 | ) | (21,473 | ) | ||||||||||||||||||||
Provision for income taxes | — | — | — | ee | — | — | — | — | ee | — | ||||||||||||||||||||||||||
Net loss | $ | (5,702 | ) | $ | (12,024 | ) | $ | (3,747 | ) | $ | (21,473 | ) | $ | (5,702 | ) | $ | (12,024 | ) | $ | (3,747 | ) | $ | (21,473 | ) | ||||||||||||
Net loss per share redeemable common stock: | ||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding, basic and diluted | 12,695 | (12,695 | ) | 12,695 | (12,695 | ) | ||||||||||||||||||||||||||||||
Net loss per share, basic and diluted | $ | (0.35 | ) | $ | 0.35 | $ | (0.35 | ) | $ | 0.35 | ||||||||||||||||||||||||||
Net loss per share common stock: | ||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding, basic and diluted | 3,370 | 75,791 | (37,862 | ) | 41,299 | 3,370 | 75,791 | (37,862 | ) | 41,299 | ||||||||||||||||||||||||||
Net loss per share, basic and diluted | $ | (0.35 | ) | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.52 | ) | $ | (0.35 | ) | $ | (0.16 | ) | $ | (0.01 | ) | $ | (0.52 | ) |
(a) | Reflects the reclassification of cash held in Merida’s trust account that becomes available at the Closing. Amounts available to the Company were reduced as a result of redemptions of 4,942 shares of Common Stock by Merida stockholders as well as due to $39,032 of cash released from the trust that was deposited in escrow at Closing in accordance with the Non-Redemption Agreements and the Share Transfer,Non-Redemption and Forward Purchase Agreements and classified as restricted cash. We have not adjusted the figures relating to theNon-Redemption Agreements and the Share Transfer,Non-Redemption and Forward Purchase Agreements for any immaterial sales subsequent to the Closing, of shares covered by these agreements. |
(b) | Reflects the settlement of $14,116 of estimated costs direct and incremental to the transaction. Of the total, $3,259 had been recorded as of December 31, 2021, with $1,274 having been paid, and $10,857 had not been recorded as of December 31, 2021. These amounts were reclassified (those already recorded) or booked (those not yet recorded) to additional paid in capital at Closing. |
(c) | Reflects the settlement of amounts due from Merida to its Sponsor upon the Closing. |
(d) | Reflects the conversion of $31,470 principal of Pre-Closing Convertible Promissory Notes, plus $1,313 of interest accrued at December 31, 2021, which converted to Common Stock upon the Closing. |
(e) | Reflects the reclassification of Merida’s Common Stock subject to possible redemption to permanent equity at $0.0001 par value. As of the Closing, a total of 8,869 shares of Merida’s Common Stock had been redeemed (including 4,942 in January 2022) and 4,132 shares of Merida’s redeemable Common Stock remain outstanding as non-redeemable Common Stock and will be reclassified to permanent equity. |
(f) | Reflects the conversion of 18,702 shares of Legacy Leafly preferred stock to approximately 6,141 shares Common Stock at the Closing in accordance with the Merger Agreement. |
(g) | Reflects the recapitalization of Legacy Leafly’s equity and issuance of Common Stock as consideration for the Mergers. Aggregate consideration to be paid in the Mergers is calculated based on an enterprise value of $385,000, with further adjustments in accordance with the terms of the Merger Agreement. The total Merger Consideration was apportioned between cash and Common Stock as follows: (i) each issued and outstanding share of Legacy Leafly Common Stock (including shares of Legacy Leafly Common Stock issued upon conversion of the Convertible Notes) was automatically converted into the right to receive a number of Merger Shares equal to the Exchange Ratio and (ii) each issued and outstanding share of Legacy Leafly preferred stock was automatically converted into the right to receive a number of Merger Shares equal to the Exchange Ratio multiplied by the number of shares of Legacy Leafly Common Stock issuable upon conversion of such shares of Legacy Leafly preferred stock. |
(h) | Reflects the reclassification of Merida’s historical retained earnings to additional paid in capital as part of the Mergers. |
(aa) | Reflects $1,367 of stock-based compensation expense for the vesting of 50% of the CEO’s “Liquidity Event Option” immediately prior to close of the Mergers and $189 of stock-based compensation expense for the modification of the remaining 50% of the CEO’s “Liquidity Event Option” immediately prior to close of the Mergers. See further discussion of the terms of these option awards in the section “ Executive and Director Compensation of Leafly – Executive Employment |
(bb) | Reflects the elimination of the Merida administrative service fee paid to the Sponsor that ceased. |
(cc) | Reflects the elimination of interest income earned on Merida’s trust account due to the release of trust funds to cash or the reduction in trust funds due to the redemption of redeemable stock. |
(dd) | Reflects the elimination of $1,313 of interest expense on Legacy Leafly’s outstanding Pre-Closing Convertible Promissory Notes that converted to stock upon the close of the Mergers. Also reflects, on the statements of operations, the addition of $3,583 of interest expense on the Convertible Notes that were issued upon the close of the Mergers, including accretion of $331. |
(ee) | Reflects the income tax effect of pro forma adjustments using the estimated effective tax rate of 0%. In their historical periods, Legacy Leafly and Merida concluded that it is more likely than not that they will not recognize the benefits of federal and state net deferred tax assets and as a result established valuation allowances. For pro forma purposes, it is assumed that this conclusion will continue at and subsequent to the close date of the Mergers and as such, a 0% effective tax rate is reflected. |
(ff) | Reflects the estimated change in fair value of the derivative liability for the shareholder agreements discussed in footnote (i) above, over their three month term, using the change in valuation between September 30, 2021 and December 31, 2021 as a proxy. Actual future changes in fair value are not estimable as of this date and may differ materially from this amount. |
Pro forma net loss | $ | (21,473 | ) | |
Pro forma weighted average shares outstanding, basic and diluted | 41,299 | |||
Pro forma net loss per share, basic and diluted | $ | (0.52 | ) |
Merida public stockholders (1) | 4,160 | |||
Merida initial stockholders (including Sponsor and EBC) (2) | 1,667 | |||
Merida convertible noteholders | 38 | |||
Total Merida | 5,865 | |||
Leafly existing securityholders (3) | 35,434 | |||
Pro forma weighted average shares outstanding, basic and diluted | 41,299 |
(1) | Includes an aggregate of 28 Sponsor Shares transferred by Sponsor to public stockholders pursuant to the Non-Redemption Agreements, the Share Transfer,Non-Redemption and Forward Purchase Agreements. Also includes 3,861 shares subject to the Share Transfer,Non-Redemption and Forward Purchase Agreements. |
(2) | No Sponsor Shares were forfeited pursuant to the Sponsor Agreement. This row reflects that (a) of the 3,250 Sponsor Shares initially held by Sponsor, 1,625 Sponsor Shares (equal to 50% of the 3,250 Sponsor Shares issued to Sponsor prior to Merida’s initial public offering) vested upon the closing of the Mergers and (b) all 120 Representative Shares vested upon the closing of the Mergers, (c) 28 vested Sponsor Shares were transferred to the public stockholders pursuant to the Share Transfer, Non-Redemption and Forward Purchase Agreements and (d) 38 vested Sponsor Shares were transferred to the Note Investors pursuant to the Convertible Note Purchase Agreement and (e) 13 shares were forfeited pursuant to the Side Letter. |
(3) | Amount represents approximately 25,166 shares converted from Legacy Leafly Common Stock, 6,141 shares converted from Legacy Leafly preferred stock, and 4,128 shares converted from Convertible Notes. |
Earn Out Shares | 6,000 | (1) | ||
Merida Private Warrants and Public Warrants | 10,451 | (2) | ||
Merida Sponsor Shares and Representative Shares that will be subject to earnout | 1,625 | (3) | ||
Shares subject to potential conversion of the Convertible Notes | 2,400 | (4) | ||
Shares subject to outstanding Legacy Leafly stock options | 3,726 | (5) | ||
Total potentially dilutive securities | 24,202 |
(1) | Up to 6,000 shares of Common Stock may be issuable to Leafly securityholders and Participants in respect of the Earn Out Shares. We cannot predict whether or to what extent any or all of the Earn Out Shares will be issued. |
(2) | Amount represents 10,451 Warrants outstanding at December 31, 2021. |
(3) | Amount represents the 50% of Sponsor Shares that became subject to forfeiture per the conditions described under “ Certain Relationships and Related Party Transaction |
(4) | This amount represents 2,400 shares of Common Stock potentially issuable upon conversion of the Convertible Notes. The Convertible Notes are convertible into shares of Common Stock at an initial conversion rate of 0.08 shares of Common Stock per $1 principal amount of Convertible Notes and 0.08 shares of Common Stock per $1 amount of accrued and unpaid interest, if any, thereon, subject to adjustment for customary events prior to the Maturity Date, which is equivalent to an initial conversion price of $12.50 per share (such conversion price not in thousands). Conversion of the Convertible Notes, together with any accrued and unpaid interest, if any, at the time of conversion will be settled in shares of Common Stock. In addition, pursuant to the Convertible Note Purchase Agreement, the Sponsor agreed to transfer, for no additional consideration, 38 sponsor shares and 300 Private Warrants to the Note Investors. |
(5) | Amount represents 11,349 options outstanding upon closing of the Mergers converted to options for Common Stock using an exchange ratio of 0.3283. |
($ in thousands, except per share amounts) | Net Loss | Basic and Diluted Loss per Share | Weighted Average Shares | Net Loss | Basic and Diluted Loss per Share | Weighted Average Shares | ||||||||||||||||||
For the Year Ended December 31, 2021 | ||||||||||||||||||||||||
Pro forma combined (1) | $ | (21,473 | ) | $ | (0.52 | ) | 41,299 | $ | (21,473 | ) | $ | (0.52 | ) | 41,299 | ||||||||||
Public company costs | 9,052 | 9,052 | ||||||||||||||||||||||
Pro forma combined after managements adjustments | $ | (30,525 | ) | $ | (0.74 | ) | 41,299 | $ | (30,525 | ) | $ | (0.74 | ) | 41,299 |
(1) | As shown in the Unaudited Pro Forma Condensed Combined Statements of Operations for the year ended December 31, 2021 in this prospectus. |
Year ended December 31, | 2021 | 2020 | Change | Change (%) | ||||||||||||
Average MAUs (in thousands) (1) | 10,005 | 11,531 | (1,526 | ) | (13 | )% | ||||||||||
Ending retail accounts (2) | 5,265 | 3,665 | 1,600 | 44 | % | |||||||||||
Retailer average revenue per account (ARPA) (3) | $ | 636 | $ | 735 | $ | (99 | ) | (13 | )% |
Year ended December 31, | 2021 | 2020 | Change | Change (%) | ||||||||||||
Average MAUs (in thousands) (1) | 10,005 | 11,531 | (1,526 | ) | (13 | )% | ||||||||||
Ending retail accounts (2) | 5,265 | 3,665 | 1,600 | 44 | % | |||||||||||
Retailer average revenue per account (ARPA) (3) | $ | 636 | $ | 735 | $ | (99 | ) | (13 | )% |
(1) | Calculated as a simple average for the period presented. Using the prior calculation that excluded native apps, Average MAUs would have been 9,278 and 10,592 for 2021 and 2020, respectively, for a decrease of 1,314 or 12%. |
(2) | Represents the figure outstanding in the last month of the respective period. |
(3) | Calculated as a simple average of monthly retailer ARPA for the period presented. Using the prior calculation of retailer ARPA which included retail revenue on a product basis, retailer ARPA would have been $631 and $734 for 2021 and 2020, respectively for a decrease of $103 or 14%. |
Three Months Ended March 31, | 2022 | 2021 | Change | Change (%) | ||||||||||||
Average MAUs (in thousands) (1) | 7,749 | 10,973 | (3,224 | ) | (29 | )% | ||||||||||
Ending retail accounts (2) | 5,422 | 3,965 | 1,457 | 37 | % | |||||||||||
Retailer ARPA (3) | $ | 576 | $ | 685 | $ | (109 | ) | (16 | )% |
(1) | Calculated as a simple average for the period presented. Using the prior calculation that excluded native apps, Average MAUs would have been 7,092 and 10,162 for the three months ended March 31, 2022 and 2021, respectively, for a decrease of 3,070, or 30%. |
(2) | Represents the amount outstanding in the last month of the respective period. |
(3) | Calculated as a simple average of monthly retailer ARPA for the period presented. Using the prior calculation of retailer ARPA which included retail revenue on a product basis, retailer ARPA would have been $570 and $683 for the three months ended March 31, 2022 and 2021, respectively for a decrease of $113 or 17%. |
Three Months Ended March 31, | 2022 | 2021 | Change ($) | Change (%) | ||||||||||||
Retail | $ | 9,179 | $ | 7,821 | $ | 1,358 | 17 | % | ||||||||
Brands | 2,241 | 1,654 | 587 | 35 | % | |||||||||||
Total revenue | $ | 11,420 | $ | 9,475 | $ | 1,945 | 21 | % | ||||||||
Three Months Ended March 31, | 2022 | 2021 | Change ($) | Change (%) | ||||||||||||
Retail | $ | 1,040 | $ | 730 | $ | 310 | 42 | % | ||||||||
Brands | 415 | 360 | 55 | 15 | % | |||||||||||
Total cost of revenue | $ | 1,455 | $ | 1,090 | $ | 365 | 33 | % | ||||||||
Three Months Ended March 31, | 2022 | 2021 | Change ($) | Change (%) | ||||||||||||
Sales and marketing | $ | 7,014 | $ | 3,803 | $ | 3,211 | 84 | % | ||||||||
Product development | 3,465 | 3,170 | 295 | 9 | % | |||||||||||
General and administrative | 6,931 | 2,506 | 4,425 | 177 | % | |||||||||||
Total operating expenses | $ | 17,410 | $ | 9,479 | $ | 7,931 | 84 | % | ||||||||
Three Months Ended March 31, | 2022 | 2021 | Change ($) | Change (%) 1 | ||||||||||||
Interest (expense) income, net | $ | (697 | ) | $ | 1 | $ | (698 | ) | nm | |||||||
Change in fair value of derivatives | (10,397 | ) | — | (10,397 | ) | nm | ||||||||||
Other expense, net | (837 | ) | (16 | ) | (821 | ) | nm | |||||||||
Total other expense | $ | (11,931 | ) | $ | (15 | ) | $ | (11,916 | ) | nm | ||||||
1 | An “nm” reference means the percentage is not meaningful. |
Year Ended December 31, | 2021 | 2020 | Change ($) | Change (%) | 2021 | 2020 | Change ($) | Change (%) | ||||||||||||||||||||||||
Retail | $ | 33,628 | $ | 29,591 | $ | 4,037 | 14 | % | $ | 33,628 | $ | 29,591 | $ | 4,037 | 14 | % | ||||||||||||||||
Brands | 9,408 | 6,801 | 2,607 | 38 | % | 9,408 | 6,801 | 2,607 | 38 | % | ||||||||||||||||||||||
Total revenue | $ | 43,036 | $ | 36,392 | $ | 6,644 | 18 | % | $ | 43,036 | $ | 36,392 | $ | 6,644 | 18 | % | ||||||||||||||||
Year ended December 31, | 2021 | 2020 | Change ($) | Change (%) | ||||||||||||
Retail | $ | 3,193 | $ | 3,301 | $ | (108 | ) | (3 | )% | |||||||
Brands | 1,790 | 1,661 | 129 | 8 | % | |||||||||||
Total cost of revenue | $ | 4,983 | $ | 4,962 | $ | 21 | — | % | ||||||||
Year ended December 31, | 2021 | 2020 | Change ($) | Change (%) | ||||||||||||
Sales and marketing | $ | 19,640 | $ | 13,189 | $ | 6,451 | 49 | % | ||||||||
Product development | 13,896 | 14,485 | (589 | ) | (4 | )% | ||||||||||
General and administrative | 15,142 | 13,052 | 2,090 | 16 | % | |||||||||||
Total operating expenses | $ | 48,678 | $ | 40,726 | $ | 7,952 | 20 | % | ||||||||
Year Ended December 31, | 2021 | 2020 | Change ($) | Change (%) | 2021 | 2020 | Change ($) | Change (%) | ||||||||||||||||||||||||
Interest expense, net | $ | (1,349 | ) | $ | (637 | ) | $ | (712 | ) | 112 | % | $ | (1,349 | ) | $ | (637 | ) | $ | (712 | ) | 112 | % | ||||||||||
Other expense, net | (50 | ) | (31 | ) | (19 | ) | 61 | % | (50 | ) | (31 | ) | (19 | ) | 61 | % | ||||||||||||||||
Total other expense | $ | (1,399 | ) | $ | (668 | ) | $ | (731 | ) | 109 | % | $ | (1,399 | ) | $ | (668 | ) | $ | (731 | ) | 109 | % | ||||||||||
Year Ended December 31, | Year Ended December 31, | Three Months Ended March 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | $ | (12,024 | ) | $ | (9,964 | ) | (19,376 | ) | (1,109 | ) | ||||||||
Interest expense, net | 1,349 | 637 | 1,349 | 637 | 697 | (1 | ) | |||||||||||||||||
Depreciation and amortization expense | 253 | 312 | 253 | 312 | 52 | 80 | ||||||||||||||||||
EBITDA | (10,422 | ) | (9,015 | ) | (10,422 | ) | (9,015 | ) | (18,627 | ) | (1,030 | ) | ||||||||||||
Stock-based compensation | 1,022 | 1,158 | 1,924 | 181 | ||||||||||||||||||||
Stock-based compensation | 1,022 | 1,158 | ||||||||||||||||||||||
Transaction Expenses | — | — | 874 | — | ||||||||||||||||||||
Change in fair value of derivatives | — | — | 10,397 | — | ||||||||||||||||||||
Adjusted EBITDA | $ | (9,400 | ) | $ | (7,857 | ) | $ | (9,400 | ) | $ | (7,857 | ) | (5,432 | ) | (849 | ) | ||||||||
Name | Age | Position | ||
Directors and Executive Officers | ||||
Yoko Miyashita | 47 | Chief Executive Officer and Director | ||
Executive Officers | ||||
Suresh Krishnaswamy | 53 | Chief Financial Officer | ||
David Cotter | 52 | Chief Product Officer | ||
Sam Martin | 38 | Chief Operating Officer | ||
Kimberly Boler | 54 | General Counsel | ||
Non-Employee Directors | ||||
Michael Blue | Director and Chairman | |||
Peter Lee | 45 | Director | ||
Cassandra Chandler | 64 | Director | ||
Blaise Judja-Sato | 57 | Director | ||
Alan Pickerill | 55 | Director |
�� | • | assessing annually whether the composition of the Board as a whole reflects the appropriate balance of independence, sound judgment, business specialization, technical skills, diversity of background and experience and other desired qualities, and recommend any appropriate changes to the Board; |
Name and Principal Position | Year | Salary (1) | Bonus (2) | Option Awards | All Other Compensation (3) | Total Compensation | Year | Salary (1) | Bonus (2) | Option Awards | All Other Compensation | Total Compensation | ||||||||||||||||||||||||||||||||||||||||
Yoko Miyashita | 2021 | $ | 400,024 | $ | 246,000 | $ | 981,532 | (4) | $ | 28,650 | $ | 1,656,206 | 2021 | $ | 400,024 | $ | 246,000 | $ | 981,532 | (4 | ) | $ | 28,650 | $ | 1,656,206 | |||||||||||||||||||||||||||
Chief Executive Officer | 2020 | $ | 380,023 | $ | 27,064 | $ | 36,030 | (5) | $ | 18,987 | $ | 462,104 | 2020 | $ | 380,023 | $ | 27,064 | $ | 36,030 | (5 | ) | $ | 18,987 | $ | 462,104 | |||||||||||||||||||||||||||
Suresh Krishnaswamy Chief Financial Officer | 2021 | $ | 101,565 | $ | 50,000 | $ | 914,870 | (6) | $ | 90,251 | $ | 1,156,686 | ||||||||||||||||||||||||||||||||||||||||
Kimberly Boler General Counsel | 2021 | $ | 90,626 | $ | 41,000 | $ | 457,433 | (7) | $ | 42,924 | $ | 631,983 | ||||||||||||||||||||||||||||||||||||||||
Suresh Krishnaswamy | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Chief Financial Officer | 2021 | $ | 101,565 | $ | 50,000 | $ | 914,870 | (6 | ) | $ | 90,251 | $ | 1,156,686 | |||||||||||||||||||||||||||||||||||||||
Kimberly Boler | ||||||||||||||||||||||||||||||||||||||||||||||||||||
General Counsel | 2021 | $ | 90,626 | $ | 41,000 | $ | 457,433 | (7 | ) | $ | 42,924 | $ | 631,983 |
(1) | Amounts reported in this column comprise total annual salaries earned during fiscal years 2021 and 2020. The salary amounts for 2020 reflect the temporary reduction in base salary applicable to each of our named executive officers from March 27, 2020 until May 26, 2020, as further discussed above under “Salary.” |
(2) | Amounts reported for 2021 in this column comprise total annual bonuses earned in 2021 and paid in 2022 in cash. The amount reported for Ms. Miyashita in 2020 represents her total annual bonus earned in 2020, which she elected in 2021 to take in the form of immediately vested stock options to purchase 144,342 shares at an exercise price of $0.36. The grant date fair value of these options was $27,064, calculated in accordance with ASC Topic 718 using a Black-Scholes model with inputs of: the fair value of Leafly’s common stock on the grant date of $0.36, which was calculated using a 409A third-party valuation; no dividends; volatility of 62%; a risk-free rate of 0.8%; and an expected life of 5.0 years. |
(3) | All Other Compensation comprises 401(k) plan matching contributions, cell phone allowance, health and welfare program premiums, and license, certification, and membership renewal fees, under programs that are available to substantially all our U.S.-based employees. In 2021, “All Other Compensation” (i) for Ms. Miyashita includes 401(k) plan matching contributions of $14,086 and health and welfare premiums of $11,145; (ii) for Mr. Krishnaswamy also reflects $87,588 paid by Legacy Leafly to a consulting firm which then paid $50,960 to Mr. Krishnaswamy for consulting services he provided to Legacy Leafly in 2021 prior to his hiring; and, (iii) for Ms. Boler reflects a $40,000 relocation allowance provided to Ms. Boler upon her hiring. |
(4) | This amount comprises of: (i) $385,963 of grant date fair value of options to purchase 1,944,397 shares at an exercise price of $0.36 and standard time-based vesting and (ii) $595,569 of grant date fair value of options to purchase 2,916,596 shares at an exercise price of $0.36 that vest based on the occurrence of the Milestone Option and the Liquidity Event Option. |
(5) | This amount comprises $36,030 of incremental fair value of options that were repriced in November of 2020, as discussed under “ Option Award Repricing |
(6) | This amount represents the grant date fair value of options granted to Mr. Krishnaswamy in connection with his hiring, including: (i) $128,381 of fair value of 100,000 shares with an exercise price of $2.71 and market capitalization vesting triggers, which were valued using a Monte-Carlo simulation model; (ii) $307,903 of fair value of 200,000 shares with an exercise price of $2.71 and revenue vesting triggers, which were valued using a Black-Scholes model; and (iii) $478,586 of fair value of 310,868 shares with an exercise price of $2.71 and standard time-based vesting, which were valued using a Black-Scholes model. |
(7) | This amount represents the grant date fair value of options granted to Ms. Boler in connection with her hiring, including: (i) $64,191 of fair value of 50,000 shares with an exercise price of $2.71 and market capitalization vesting triggers, which were valued using a Monte-Carlo simulation model; (ii) $153,951 of fair value of 100,000 shares with an exercise price of $2.71 and revenue vesting triggers, which were valued using a Black-Scholes model; and (iii) $239,291 of fair value of 155,433 shares with an exercise price of $2.71 and standard time-based vesting, which were valued using a Black-Scholes model. |
Name | Grant Date | Vesting Commencement Date | Number of Securities Underlying Unexercised Options (#) Exercisable(1) | Number of Securities Underlying Unexercised Options (#) Unexercisable(1) | Option Exercise Price ($) | Option Expiration Date | Grant Date | Vesting Commencement Date | Number of Securities Underlying Unexercised Options (#) Exercisable(1) | Number of Securities Underlying Unexercised Options (#) Unexercisable(1) | Option Exercise Price ($) | Option Expiration Date | ||||||||||||||||||||||||||||||||||||||||||||||||
Yoko Miyashita | 4/16/20 | 3/27/20 | 90,360 | (2) | - | (2) | 0.40 | 4/15/30 | 4/16/20 | 3/27/20 | 90,360 | (2 | ) | — | (2 | ) | 0.40 | 4/15/30 | ||||||||||||||||||||||||||||||||||||||||||
11/25/20 | 5/20/19 | 172,474 | (3) | 106,250 | (3) | 0.36 | 6/30/29 | 11/25/20 | 5/20/19 | 172,474 | (3 | ) | 106,250 | (3 | ) | 0.36 | 6/30/29 | |||||||||||||||||||||||||||||||||||||||||||
5/4/21 | 4/1/21 | (4) | 144,342 | (4) | - | (4) | 0.36 | 5/3/31 | 5/4/21 | 4/1/21 | (4 | ) | 144,342 | (4 | ) | — | (4 | ) | 0.36 | 5/3/31 | ||||||||||||||||||||||||||||||||||||||||
5/4/21 | 8/17/20 | 648,132 | (3) | 1,296,265 | (3) | 0.36 | 5/3/31 | 5/4/21 | 8/17/20 | 648,132 | (3 | ) | 1,296,265 | (3 | ) | 0.36 | 5/3/31 | |||||||||||||||||||||||||||||||||||||||||||
5/4/21 | 8/17/20 | - | (5) | 1,458,298 | (5) | 0.36 | 5/3/31 | 5/4/21 | 8/17/20 | — | (5 | ) | 1,458,298 | (5 | ) | 0.36 | 5/3/31 | |||||||||||||||||||||||||||||||||||||||||||
5/4/21 | 8/17/20 | - | (6) | 1,458,298 | (6) | 0.36 | 5/3/31 | 5/4/21 | 8/17/20 | — | (6 | ) | 1,458,298 | (6 | ) | 0.36 | 5/3/31 | |||||||||||||||||||||||||||||||||||||||||||
Suresh Krishnaswamy | 10/27/21 | 9/20/21 | - | (7) | 300,000 | (7) | 2.71 | 10/26/31 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Suresh | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Krishnaswamy | 10/27/21 | 9/20/21 | — | (7 | ) | 300,000 | (7 | ) | 2.71 | 10/26/31 | ||||||||||||||||||||||||||||||||||||||||||||||||||
10/27/21 | 9/20/21 | - | (3) | 9,544 | (3) | 2.71 | 10/26/31 | 10/27/21 | 9/20/21 | — | (3 | ) | 9,544 | (3 | ) | 2.71 | 10/26/31 | |||||||||||||||||||||||||||||||||||||||||||
11/1/21 | 9/20/21 | - | (3) | 301,324 | (3) | 2.71 | 10/31/31 | 11/1/21 | 9/20/21 | — | (3 | ) | 301,324 | (3 | ) | 2.71 | 10/31/31 | |||||||||||||||||||||||||||||||||||||||||||
Kimberly Boler | 10/27/21 | 9/20/21 | - | (7) | 150,000 | (7) | 2.71 | 10/26/31 | 10/27/21 | 9/20/21 | — | (7 | ) | 150,000 | (7 | ) | 2.71 | 10/26/31 | ||||||||||||||||||||||||||||||||||||||||||
10/27/21 | 9/20/21 | - | (3) | 4,771 | (3) | 2.71 | 10/26/31 | 10/27/21 | 9/20/21 | — | (3 | ) | 4,771 | (3 | ) | 2.71 | 10/26/31 | |||||||||||||||||||||||||||||||||||||||||||
11/1/21 | 9/20/21 | - | (3) | 150,662 | (3) | 2.71 | 10/31/31 | 11/1/21 | 9/20/21 | — | (3 | ) | 150,662 | (3 | ) | 2.71 | 10/31/31 |
(1) | Amount represents the number of securities underlying options that were held prior to the Closing of the Mergers. Upon the Closing of the Mergers, options to purchase such securities converted to options to purchase shares of Common Stock using an exchange ratio of 0.3283. |
(2) | This option vested 100% on the first anniversary of the vesting commencement date as the employee remained employed on that date. |
(3) | This option vests 25% on the first anniversary of the vesting commencement date and in 1/48 increments for each subsequent month of continuous employment. |
(4) | This option was vested upon grant. |
(5) | This is the Liquidity Event Option discussed under “ Option Award Granted to Yoko Miyashita |
(6) | This is the Milestone Option discussed under “ Option Award Granted to Yoko Miyashita |
(7) | These grants are for the 300,000 options and 150,000 options discussed under “ |
Name of Beneficial Owners (2) | Number of Shares of Common Stock Beneficially Owned | Percentage of Outstanding Common Stock (1) | ||||||||||||||
Name of Beneficial Owners(2) | Number of Shares of Common Stock Beneficially Owned | Percentage of Outstanding Common Stock(1) | ||||||||||||||
5% Stockholders: | ||||||||||||||||
Merida Holdings LLC (3) (4) | 6,189,864 | 13.5 | % | 6,189,864 | 13.5 | % | ||||||||||
Peter Lee (3) (4) | 6,189,864 | 13.5 | % | 6,189,864 | 13.5 | % | ||||||||||
Brendan Kennedy (5) | 4,229,121 | 9.9 | % | 4,229,121 | 9.8 | % | ||||||||||
Michael Blue | 2,927,772 | 6.8 | % | 2,927,772 | 6.8 | % | ||||||||||
Christian Groh (6) | 2,746,227 | 6.4 | % | 2,746,227 | 6.4 | % | ||||||||||
Executive officers and directors of the Company: | ||||||||||||||||
Peter Lee (3) (4) | 6,189,864 | 13.5 | % | 6,189,864 | 13.5 | % | ||||||||||
Michael Blue | 2,927,772 | 6.8 | % | 2,927,772 | 6.8 | % | ||||||||||
Yoko Miyashita (7) | 669,733 | 1.5 | % | 731,140 | 1.7 | % | ||||||||||
Samuel Martin (8) | 253,215 | * | 278,642 | * | ||||||||||||
Dave Cotter (9) | 179,899 | * | 208,969 | * | ||||||||||||
Suresh Krishnaswamy | — | * | 26,516 | * | ||||||||||||
Kimberly Boler | — | * | 13,757 | * | ||||||||||||
Alan Pickerill | — | * | — | * | ||||||||||||
Cassandra Chandler | — | * | — | * | ||||||||||||
Blaise Judja-Sato | — | * | — | * | ||||||||||||
All directors and executive officers as a group (10 individuals) | 10,220,483 | 21.7 | % | 10,376,660 | 22.0 | % |
* | Indicates less than 1 percent. |
(1) | The percentage of beneficial ownership of the Company is calculated based on |
(2) | Unless otherwise indicated, the business address of each of the individuals is c/o Leafly Holdings, Inc., 111 S. Jackson St. Suite 531 Seattle, WA 98104. |
(3) | The business address of each of these parties is c/o Merida Merger Corp., 641 Lexington Avenue, 18th Floor, New York, NY 10022. |
(4) | Represents securities held by Merida Holdings, LLC, of which each of Messrs. Lee, Baruchowitz, Monat and Nannetti is a managing member. Each individual has one vote, and the approval of three of the four managing members is required for approval of an action of the entity. Under the so-called “rule of three,” if voting and dispositive decisions regarding an entity’s securities are made by three or more individuals, and a voting or dispositive decision requires the approval of a majority of those individuals, then none of the individuals is deemed a beneficial owner of the entity’s securities. Based on the foregoing, no individual of the committee exercises voting or dispositive control over any of the securities held by such entity, even those in which he directly owns a pecuniary interest. Accordingly, none of them will be deemed to have or share beneficial ownership of such shares. The 6,189,864 shown in the table reflects 3,018,262 Private Warrants discussed in note (1) to this table plus (i) 1,546,408 Sponsor Shares issued to the Sponsor prior to Merida’s initial public offering (after reflecting the transfer of 30,803 Sponsor Shares pursuant to the Share Transfer,Non-Redemption and Forward Purchase Agreements and the 37,500 Sponsor Shares pursuant to the Convertible Note Purchase Agreement and the forfeiture of 13,000 Sponsor Shares pursuant to the Side Letter) and (ii) 1,625,194 Sponsor Shares subject to additional vesting conditions, as described elsewhere in this prospectus. This row does not reflect the potential cancellation of up to 26,000 Sponsor Shares on the date that is three months following the Closing Date, pursuant to the Side Letter. |
(5) | Includes (1) 4,097,602 shares of Common Stock held directly by Brendan Kennedy and (2) 131,519 shares of Common Stock held directly by Cavendish Privateers LLC. Mr. Kennedy is the sole member of Cavendish Privateers LLC and has sole voting and investment power with respect to the shares held by Cavendish Privateers LLC. |
(6) | Includes 270,227 shares owned by Mr. Groh’s wife, for which he disclaims beneficial ownership, and 8,208 fully vested options to purchase Common Stock at an exercise price of $1.10 per share. Excludes 78,988 shares held by Groh Family Irrevocable Trust, for which he disclaims beneficial ownership. |
(7) | Includes (i) 23,402 shares of Common Stock and (ii) |
(8) | Includes (i) 13,278 shares of Common Stock, (ii) |
(9) |
Securities Beneficially Owned Prior to this Offering | Securities to be Registered in this Offering(1) | Securities to be Beneficially Owned After this Offering | ||||||||||||||
Name of Selling Securityholder | Common Stock | Common Stock | Common Stock | % (3) | ||||||||||||
Christian Groh(2) | 2,746,227 | 2,746,227 | 2,746,227 | 6.4 | ||||||||||||
Groh Family Irrevocable Trust | 78,988 | 78,988 | 78,988 | * |
Securities Beneficially Owned Prior to this Offering | Securities to be Registered in this Offering(1) | Securities to be Beneficially Owned After this Offering | ||||||||||||||||||||||||||||||
Name of Selling Securityholder | Common Stock(2) | Warrants(3) | Common Stock(2) | Warrants(3) | Common Stock(2) | %(17) | Warrants(3) | % (18) | ||||||||||||||||||||||||
Merida Holdings, LLC(4) | 6,189,864 | 3,018,262 | 6,189,864 | 3,018,262 | — | — | — | — | ||||||||||||||||||||||||
Brendan Kennedy(5) | 4,229,121 | — | 4,229,121 | — | — | — | — | — | ||||||||||||||||||||||||
Michael Blue(6) | 2,927,772 | — | 2,927,772 | — | — | — | — | — | ||||||||||||||||||||||||
Entities affiliated with Cohanzick(7) | 2,833,497 | 300,000 | 2,833,497 | 300,000 | — | — | — | — | ||||||||||||||||||||||||
Merida Capital(8) | 2,041,292 | — | 2,041,292 | — | — | — | — | — | ||||||||||||||||||||||||
Meteora Capital, LLC(9) | 1,311,986 | — | 28,286 | — | 1,283,700 | 3.0 | % | — | — | |||||||||||||||||||||||
EarlyBirdCapital, Inc.(10) | 674,549 | 632,049 | 674,549 | 632,049 | — | — | — | — | ||||||||||||||||||||||||
Echelon Wealth Partners Inc.(11) | 24,000 | — | 24,000 | — | — | — | — | — | ||||||||||||||||||||||||
Yoko Miyashita(12) | 669,733 | (13) | — | 23,402 | — | — | — | — | — | |||||||||||||||||||||||
Samuel Martin(14) | 253,215 | (15) | — | 13,278 | — | — | — | — | — | |||||||||||||||||||||||
David Nussbaum(16) | 12,500 | — | 12,500 | — | — | — | — | — | ||||||||||||||||||||||||
Edward Kovary(16) | 12,500 | — | 12,500 | — | — | — | — | — | ||||||||||||||||||||||||
Steven Levine(16) | 12,500 | — | 12,500 | — | — | — | — | — | ||||||||||||||||||||||||
Marc Van Tricht(16) | 3,500 | — | 3,500 | — | — | — | — | — | ||||||||||||||||||||||||
Mike Powell(16) | 3,500 | — | 3,500 | — | — | — | — | — | ||||||||||||||||||||||||
Mauro Conijeski(16) | 1,500 | — | 1,500 | — | — | — | — | — | ||||||||||||||||||||||||
Robert Gladstone(16) | 1,500 | — | 1,500 | — | — | — | — | — | ||||||||||||||||||||||||
Eileen Moore(16) | 1,500 | — | 1,500 | — | — | — | — | — | ||||||||||||||||||||||||
Amy Kaufmann(16) | 1,000 | — | 1,000 | — | — | — | — | — | ||||||||||||||||||||||||
Jillian Carter(16) | 1,000 | — | 1,000 | — | — | — | — | — | ||||||||||||||||||||||||
Tracy Fezza(16) | 500 | — | 500 | — | — | — | — | — | ||||||||||||||||||||||||
Joseph Mongiello(16) | 500 | — | 500 | — | — | — | — �� | — | ||||||||||||||||||||||||
Coleen McGlynn(16) | 500 | — | 500 | — | — | — | — | — | ||||||||||||||||||||||||
Jacqueline Chang(16) | 500 | — | 500 | — | — | — | — | — | ||||||||||||||||||||||||
Gleeson Cox(16) | 500 | — | 500 | — | — | — | — | — |
(1) | The amounts set forth in this column are the number of Common Stock |
(2) |
(3) |
F-2 | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 |
F-26 | ||||
F-27 | ||||
F-28 | ||||
F-29 | ||||
F-30 | ||||
F-31 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 35,389 | $ | 28,565 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,682 and $1,848, respectively | 3,280 | 2,958 | ||||||
Deferred transaction costs | — | 2,840 | ||||||
Prepaid expenses and other current assets | 7,318 | 1,347 | ||||||
Restricted cash | 37,224 | 130 | ||||||
Total current assets | 83,211 | 35,840 | ||||||
Property, equipment, and software, net | 1,035 | 313 | ||||||
Total assets | 84,246 | 36,153 | ||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 2,875 | $ | 3,048 | ||||
Accrued expenses and other current liabilities | 3,898 | 8,325 | ||||||
Deferred revenue | 2,566 | 1,975 | ||||||
Convertible promissory notes, net | — | 31,377 | ||||||
Forward share purchase agreements derivative liability | 7,452 | — | ||||||
Total current liabilities | 16,791 | 44,725 | ||||||
Non-current liabilities | ||||||||
Convertible promissory notes, net | 28,461 | — | ||||||
Private warrants derivative liability | 7,989 | — | ||||||
Escrow shares derivative liability | 10,129 | — | ||||||
Shareholder earn-out rights derivative liability | 35,912 | — | ||||||
Total non-current liabilities | 82,491 | — | ||||||
Commitments and contingencies (Note 8) | 0 | 0 | ||||||
Stockholders’ deficit | ||||||||
Preferred stock; $0.0001 par value; 5,000 and 6,578 authorized, — and 6,140 issued and outstanding, and aggregate liquidation preference of $— and $19,436 at March 31, 2022 and December 31, 2021, respectively | — | 1 | ||||||
Common stock; $0.0001 par value; 200,000 and 69,361 authorized at March 31, 2022 and December 31, 2021, respectively; 42,961 and 25,086 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 4 | 3 | ||||||
Additional paid-in capital | 74,106 | 61,194 | ||||||
Accumulated deficit | (89,146 | ) | (69,770 | ) | ||||
Total stockholders’ deficit | (15,036 | ) | (8,572 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 84,246 | $ | 36,153 | ||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue | $ | 11,420 | $ | 9,475 | ||||
Cost of revenue | 1,455 | 1,090 | ||||||
Gross profit | 9,965 | 8,385 | ||||||
Operating expenses | ||||||||
Sales and marketing | 7,014 | 3,803 | ||||||
Product development | 3,465 | 3,170 | ||||||
General and administrative | 6,931 | 2,506 | ||||||
Total operating expenses | 17,410 | 9,479 | ||||||
Loss from operations | (7,445 | ) | (1,094 | ) | ||||
Interest (expense) income, net | (697 | ) | 1 | |||||
Change in fair value of derivatives | (10,397 | ) | — | |||||
Other expense, net | (837 | ) | (16 | ) | ||||
Net loss | $ | (19,376 | ) | $ | (1,109 | ) | ||
Basic and diluted loss per share | $ | (0.52 | ) | $ | (0.04 | ) | ||
Weighted-average basic and diluted shares outstanding | 37,525 | 30,904 |
Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance at December 31, 2021 | 6,140 | 1 | 25,086 | $ | 3 | 61,194 | (69,770 | ) | $ | (8,572 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (19,376 | ) | (19,376 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,924 | — | 1,924 | |||||||||||||||||||||
Exercise of stock options | — | — | 114 | — | 127 | — | 127 | |||||||||||||||||||||
Conversion of 2021 Notes into Common Stock at merger | — | — | 4,128 | — | 33,024 | — | 33,024 | |||||||||||||||||||||
Conversion of Preferred Stock into Common Stock at merger | (6,140 | ) | (1 | ) | 6,140 | 1 | — | — | — | |||||||||||||||||||
Merger and recapitalization, net of fees | — | — | 2,007 | — | 27,997 | — | 27,997 | |||||||||||||||||||||
Stockholder contribution for debt issuance costs | — | — | — | — | 924 | — | 924 | |||||||||||||||||||||
Escrow shares derivative liability | — | — | 1,625 | — | (6,867 | ) | — | (6,867 | ) | |||||||||||||||||||
Private warrants derivative liability | — | — | — | — | (3,916 | ) | — | (3,916 | ) | |||||||||||||||||||
Forward share purchase agreement derivative liability | — | — | 3,861 | — | (14,170 | ) | — | (14,170 | ) | |||||||||||||||||||
Shareholder earnout rights derivative liability | — | — | — | — | (26,131 | ) | — | (26,131 | ) | |||||||||||||||||||
Balance at March 31, 2022 | — | $ | — | 42,961 | $ | 4 | $ | 74,106 | $ | (89,146 | ) | $ | (15,036 | ) | ||||||||||||||
Series A Preferred Stock | Class 1, Class 2, and Class 3 Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance at December 31, 2020 | 6,140 | $ | 1 | 24,752 | $ | 2 | $ | 59,812 | $ | (57,746 | ) | $ | 2,069 | |||||||||||||||
Net loss | — | — | — | — | — | (1,109 | ) | (1,109 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 181 | — | 181 | |||||||||||||||||||||
Exercise of stock options | — | — | 36 | — | 40 | — | 40 | |||||||||||||||||||||
Balance at March 31, 2021 | 6,140 | $ | 1 | 24,788 | $ | 2 | $ | 60,033 | $ | (58,855 | ) | $ | 1,181 | |||||||||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (19,376 | ) | $ | (1,109 | ) | ||
Adjustments: | ||||||||
Depreciation | 52 | 80 | ||||||
Stock-based compensation expense | 1,924 | 181 | ||||||
Bad debt (recoveries) expense | (124 | ) | 82 | |||||
Noncash lease costs | — | 230 | ||||||
Noncash amortization of debt discount | 104 | — | ||||||
Noncash interest expense associated with convertible debt | 243 | — | ||||||
Noncash change in fair value of derivatives | 10,397 | — | ||||||
Other | 12 | 30 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (198 | ) | (502 | ) | ||||
Prepaid expenses and other current assets | (5,970 | ) | — | |||||
Accounts payable | 1,309 | (594 | ) | |||||
Accrued expenses and other current liabilities | (2,969 | ) | 796 | |||||
Deferred revenue | 591 | 438 | ||||||
Net cash used in operating activities | (14,005 | ) | (368 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of property, equipment, and software | (788 | ) | — | |||||
Net cash used in investing activities | (788 | ) | — | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 127 | 40 | ||||||
Proceeds from convertible promissory notes | 29,374 | — | ||||||
Trust proceeds from recapitalization | 582 | — | ||||||
Restricted cash received related to Forward Share Purchase Agreements | 39,032 | — | ||||||
Transaction costs associated with recapitalization | (10,397 | ) | — | |||||
Payments on related party payables | (7 | ) | (65 | ) | ||||
Net cash provided by (used in) financing activities | 58,711 | (25 | ) | |||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 43,918 | (393 | ) | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 28,695 | 4,934 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 72,613 | $ | 4,541 | ||||
Supplemental disclosure of non-cash financing activities | ||||||||
Stockholder contribution for debt issuance costs | $ | 924 | $ | — | ||||
Conversion of promissory notes into common stock | $ | 33,024 | $ | — | ||||
Forward share purchase agreements | $ | 14,170 | $ | — | ||||
Private warrants | $ | 3,916 | $ | — | ||||
Sponsor shares subject to earnout conditions | $ | 6,867 | $ | — | ||||
Stockholder earn-out rights | $ | 26,131 | $ | — |
Amount in Merida’s trust account (“the Trust”) at closing | $ | 90,824 | ||
Total payment to Merida public redeeming stockholders | 49,466 | |||
Amount available after paying Merida redeeming stockholders | 41,358 | |||
Cash to escrow for Forward Share Purchase Agreements (see Note 13) | 39,032 | |||
Remaining balance | 2,326 | |||
Merida expenses paid from the Trust at closing | 1,744 | |||
Net cash from the Trust to Leafly at closing | $ | 582 | ||
Merida public stockholders | 4,160 | |||
Merida initial stockholders (including Sponsor and EarlyBirdCapital) | 1,667 | |||
Holders of 2022 Notes (see Note 11) | 38 | |||
Shares held by Sponsor in escrow that are subject to earn-out conditions (see Note 12) | 1,625 | |||
Total Merida | 7,490 | |||
Legacy Leafly existing securityholders | 35,434 | |||
Total shares outstanding as of February 4, 2022 | 42,924 | |||
March 31, 2022 | December 31, 2021 | |||||||
Cash and cash equivalents | $ | 35,389 | $ | 28,565 | ||||
Restricted cash | 37,224 | 130 | ||||||
$ | 72,613 | $ | 28,695 | |||||
March 31, 2022 | December 31, 2021 | |||||||
Prepaid insurance | $ | 5,059 | $ | 57 | ||||
Other prepaid expenses | 2,159 | 1,134 | ||||||
Other current assets | 100 | 156 | ||||||
$ | 7,318 | $ | 1,347 | |||||
2022 | 2021 | |||||||
Balance, beginning of period | $ | 1,848 | $ | 1,131 | ||||
Add: provision for doubtful accounts, net of recoveries | (124 | ) | 82 | |||||
Less: write-offs | (42 | ) | (272 | ) | ||||
Balance, end of period | $ | 1,682 | $ | 941 | ||||
March 31, 2022 | December 31, 2021 | |||||||
Furniture and equipment | $ | 866 | $ | 1,049 | ||||
Leasehold improvements | 2 | 2 | ||||||
Internal-use software | 758 | — | ||||||
1,626 | 1,051 | |||||||
Less: accumulated depreciation and amortization | (591 | ) | (738 | ) | ||||
$ | 1,035 | $ | 313 | |||||
March 31, 2022 | December 31, 2021 | |||||||
Accrued bonuses | $ | 776 | $ | 3,668 | ||||
Other employee-related liabilities | 1,573 | 2,131 | ||||||
Accrued interest | 360 | 1,313 | ||||||
Other accrued expenses 1 | 1,189 | 1,213 | ||||||
$ | 3,898 | $ | 8,325 | |||||
1 | There are no individual items within this balance that exceed 10% of the total of the table. |
2022 | 2021 | |||||||
Advertising | $ | 11,329 | $ | 9,411 | ||||
Other services | 91 | 64 | ||||||
$ | 11,420 | $ | 9,475 | |||||
2022 | 2021 | |||||||
United States | $ | 10,735 | $ | 8,655 | ||||
All other countries | 685 | 820 | ||||||
$ | 11,420 | $ | 9,475 | |||||
2022 | 2021 | |||||||
Over time | ||||||||
Retail 1 | $ | 9,179 | $ | 7,815 | ||||
Brands 2 | 1,417 | 1,086 | ||||||
$ | 10,596 | $ | 8,901 | |||||
Point in time | ||||||||
Brands 3 | 824 | 574 | ||||||
$ | 11,420 | $ | 9,475 | |||||
1 | Revenues from subscription services and display ads |
2 | Revenues from brand profile subscriptions and digital media (including display ads and audience extension) |
3 | Revenues from branded content and channel advertising (including direct to consumer email) |
2022 | 2021 | |||||||
Balance, beginning of period | $ | 1,975 | $ | 1,585 | ||||
Add: net increase in current period contract liabilities | 2,184 | 1,649 | ||||||
Less: revenue recognized from beginning balance | (1,593 | ) | (1,211 | ) | ||||
Balance, end of period | $ | 2,566 | $ | 2,023 | ||||
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||
Outstanding at January 1, 2022 | 3,851 | $ | 1.77 | |||||||||||||
Exercised | (114 | ) | 1.12 | |||||||||||||
Forfeited or expired | (56 | ) | 1.08 | |||||||||||||
Outstanding at March 31, 2022 1 | 3,681 | $ | 1.78 | $ | 23,918 | 8.62 | ||||||||||
Vested and exercisable | 1,339 | $ | 0.98 | $ | 9,770 | 7.98 | ||||||||||
1 | Includes 2,576, 817, and 289 of service-based, performance-based, and market-based options, respectively, that the Company currently deems probable of vesting. The performance options vest only if gross revenue equals or exceeds certain thresholds for the years ending December 31, 2022 and 2023, while the market-based options will vest only if the price of the Company’s common stock reaches a $1,000,000 market capitalization target for any 20 days during a 30-day period on or before the fourth anniversary of the closing of the merger. |
2022 | 2021 | |||||||
Sales and marketing | $ | 34 | $ | 27 | ||||
Product development | 18 | 41 | ||||||
General and administrative | 1,872 | 113 | ||||||
$ | 1,924 | $ | 181 | |||||
• | Milestone Option : A stock option to purchase 1,458 shares of common stock will vestone-third each upon the achievement of the three annual revenue targets of $75,000, $150,000 and $300,000, provided the recipient remains in continuous service. |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net loss | $ | (19,376 | ) | $ | (1,109 | ) | ||
Weighted average shares outstanding | 37,525 | 30,904 | ||||||
Basic and diluted net loss per share | $ | (0.52 | ) | $ | (0.04 | ) |
Three Months Ended March 31, 2022 | ||||||||||||||||
Class 1 | Class 2 | Class 3 | Common | |||||||||||||
Net loss | $ | (2,748 | ) | $ | (4,030 | ) | $ | (585 | ) | $ | (12,013 | ) | ||||
Weighted average shares outstanding | 3,543 | 5,196 | 754 | 35,206 | ||||||||||||
Basic and diluted net loss per share | $ | (0.78 | ) | $ | (0.78 | ) | $ | (0.78 | ) | $ | (0.34 | ) |
Three Months Ended March 31, 2021 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss | $ | (420 | ) | $ | (616 | ) | $ | (73 | ) | |||
Weighted average shares outstanding | 9,379 | 13,755 | 1,629 | |||||||||
Basic and diluted net loss per share | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.04 | ) |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Shares subject to outstanding common stock options | 3,681 | 1,827 | ||||||
Shares subject to convertible promissory notes | 2,400 | — | ||||||
Shares subject to shareholder earn-out rights | 5,429 | — | ||||||
Shares subject to Public Warrants | 6,501 | — | ||||||
Shares subject to Private Warrants | 3,950 | — | ||||||
Escrow Shares (see Note 12) | 1,625 | — | ||||||
Series A preferred stock | — | 6,140 | ||||||
23,586 | 7,967 | |||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue: | ||||||||
Retail | $ | 9,179 | 7,821 | |||||
Brands | 2,241 | 1,654 | ||||||
Total revenue | $ | 11,420 | $ | 9,475 | ||||
Gross profit: | ||||||||
Retail | 8,139 | 7,091 | ||||||
Brands | 1,826 | 1,294 | ||||||
Total gross profit | $ | 9,965 | $ | 8,385 | ||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | March 31, 2022 | Gain (Loss) | February 4, 2022 | ||||||||||||
Private Warrants derivative liability | 3 | $ | 7,989 | $ | (4,073 | ) | $ | 3,916 | ||||||||
Forward share purchase agreements derivative liability | 3 | 7,452 | 6,718 | 14,170 | ||||||||||||
Escrow Shares derivative liability | 3 | 10,129 | (3,261 | ) | 6,868 | |||||||||||
Shareholder earn-out rights derivative liability | 3 | 35,912 | (9,781 | ) | 26,131 | |||||||||||
Total | $ | 61,482 | $ | (10,397 | ) | $ | 51,085 |
February 4, 2022 | $ | 3,916 | ||
Change in fair value | 4,073 | |||
March 31, 2022 | $ | 7,989 | ||
March 31, 2022 | February 4, 2022 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 36.7 | % | 34.3 | % | ||||
Term (in years) | 4.85 | 5.00 | ||||||
Risk-free rate | 2.4 | % | 1.8 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 14,170 | ||
Change in fair value | (6,718 | ) | ||
March 31, 2022 | $ | 7,452 | ||
March 31, 2022 | February 4, 2022 | |||||||
Exercise price—one agreement | $ | 10.16 | $ | 10.16 | ||||
Exercise price—three agreements | $ | 10.01 | $ | 10.01 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 72.6 | % | 63.9 | % | ||||
Term (in years) | 0.09 | 0.24 | ||||||
Risk-free rate | 0.2 | % | 0.2 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 6,868 | ||
Change in fair value | 3,261 | |||
March 31, 2022 | $ | 10,129 | ||
March 31, 2022 | February 4, 2022 | |||||||
First stock price trigger | $ | 13.50 | $ | 13.50 | ||||
Second stock price trigger | $ | 15.50 | $ | 15.50 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 63.0 | % | 64.0 | % | ||||
Term (in years) | 2.85 | 3.00 | ||||||
Risk-free rate | 2.4 | % | 1.6 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 26,131 | ||
Change in fair value | 9,781 | |||
March 31, 2022 | $ | 35,912 | ||
March 31, 2022 | February 4, 2022 | |||||||
First stock price trigger | $ | 13.50 | $ | 13.50 | ||||
Second stock price trigger | $ | 15.50 | $ | 15.50 | ||||
First revenue trigger | $ | 65,000 | $ | 65,000 | ||||
Second revenue trigger | $ | 101,000 | $ | 101,000 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
2022 Revenue assumption | $ | 55,500 | $ | 55,500 | ||||
Volatility | 63.0 | % | 64.0 | % | ||||
Term (in years) | 2.85 | 3.00 | ||||||
Risk-free rate | 2.4 | % | 1.6 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 28,565 | $ | 4,818 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,848 and $1,131, respectively | 2,958 | 2,398 | ||||||
Deferred transaction costs | 2,840 | — | ||||||
Prepaid expenses and other current assets | 1,347 | 1,608 | ||||||
Restricted cash | 130 | 116 | ||||||
Total current assets | 35,840 | 8,940 | ||||||
Property and equipment, net | 313 | 523 | ||||||
Total assets | $ | 36,153 | $ | 9,463 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 3,048 | $ | 1,599 | ||||
Accrued expenses and other current liabilities | 8,325 | 3,565 | ||||||
Related party payables | — | 645 | ||||||
Deferred revenue | 1,975 | 1,585 | ||||||
Convertible promissory notes, net | 31,377 | — | ||||||
Total current liabilities | 44,725 | 7,394 | ||||||
Commitments and contingencies (Note 7) | ||||||||
Stockholders’ equity (deficit) | ||||||||
Series A preferred stock; $0.0001 par value; 20,033 authorized, 18,702 issued and outstanding, and aggregate liquidation preference of $19,436 at December 31, 2021 and December 31, 2020, respectively | 2 | 2 | ||||||
Common stock; $0.0001 par value; 211,251 and 209,651 authorized at December 31, 2021 and December 31, 2020, respectively; 76,412 and 75,395 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 8 | 8 | ||||||
Additional paid-in capital | 61,188 | 59,805 | ||||||
Accumulated deficit | (69,770 | ) | (57,746 | ) | ||||
Total stockholders’ equity (deficit) | (8,572 | ) | 2,069 | |||||
Total liabilities and stockholders’ equity (deficit) | $ | 36,153 | $ | 9,463 | ||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 43,036 | $ | 36,392 | ||||
Cost of revenue | 4,983 | 4,962 | ||||||
Gross profit | 38,053 | 31,430 | ||||||
Operating expenses | ||||||||
Sales and marketing | 19,640 | 13,189 | ||||||
Product development | 13,896 | 14,485 | ||||||
General and administrative | 15,142 | 13,052 | ||||||
Total operating expenses | 48,678 | 40,726 | ||||||
Loss from operations | (10,625 | ) | (9,296 | ) | ||||
Interest expense, net | (1,349 | ) | (637 | ) | ||||
Other expense, net | (50 | ) | (31 | ) | ||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | ||
Basic and diluted loss per share | $ | (0.16 | ) | $ | (0.13 | ) | ||
Weighted-average basic and diluted shares outstanding | 75,791 | 76,431 |
Series A Preferred Stock | Class 1, Class 2, and Class 3 Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance at January 1, 2020 | — | $ | — | 76,776 | $ | 8 | $ | 42,588 | $ | (47,782 | ) | $ | (5,186 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (9,964 | ) | (9,964 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,158 | — | 1,158 | |||||||||||||||||||||
Exercise of stock options | — | — | 548 | — | 733 | — | 733 | |||||||||||||||||||||
Common stock repurchased | (1,929 | ) | — | — | ||||||||||||||||||||||||
Conversion of promissory notes into Series A preferred stock, net | 15,214 | 2 | 11,836 | 11,838 | ||||||||||||||||||||||||
Series A preferred stock issued, net | 3,488 | — | — | — | 3,490 | — | 3,490 | |||||||||||||||||||||
Balance at December 31, 2020 | 18,702 | $ | 2 | 75,395 | $ | 8 | $ | 59,805 | $ | (57,746 | ) | $ | 2,069 | |||||||||||||||
Net loss | — | — | — | — | — | (12,024 | ) | (12,024 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,022 | — | 1,022 | |||||||||||||||||||||
Exercise of stock options | — | — | 1,017 | — | 361 | — | 361 | |||||||||||||||||||||
Balance at December 31, 2021 | 18,702 | $ | 2 | 76,412 | $ | 8 | $ | 61,188 | $ | (69,770 | ) | $ | (8,572 | ) | ||||||||||||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | ||
Adjustments: | ||||||||
Depreciation | 253 | 312 | ||||||
Stock-based compensation expense | 1,022 | 1,158 | ||||||
Bad debt expense | 1,177 | 1,590 | ||||||
Noncash lease costs | 230 | 248 | ||||||
Noncash interest expense associated with convertible debt | 1,370 | 694 | ||||||
Other | 44 | 308 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,802 | ) | (2,138 | ) | ||||
Prepaid expenses and other current assets | (283 | ) | 87 | |||||
Accounts payable | (397 | ) | (3,327 | ) | ||||
Accrued expenses and other current liabilities | 3,172 | 1,741 | ||||||
Deferred revenue | 390 | (501 | ) | |||||
Net cash used in operating activities | (6,848 | ) | (9,792 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (87 | ) | (5 | ) | ||||
Proceeds from sale of property and equipment | — | 20 | ||||||
Net cash provided by (used in) investing activities | (87 | ) | 15 | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 334 | 97 | ||||||
Proceeds from convertible promissory notes | 31,470 | 4,624 | ||||||
Proceeds from Series A preferred stock, net | — | 3,490 | ||||||
Proceeds from related party payables | — | 645 | ||||||
Transaction costs associated with recapitalization | (855 | ) | — | |||||
Payments on related party payables | (253 | ) | — | |||||
Net cash provided by financing activities | 30,696 | 8,856 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 23,761 | (921 | ) | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 4,934 | 5,855 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 28,695 | $ | 4,934 | ||||
Supplemental disclosure of non-cash financing activities | ||||||||
Transaction costs associated with recapitalization in accounts payable and accrued expenses | $ | 1,985 | $ | — | ||||
Conversion of promissory notes into Series A preferred stock, net | — | $ | 11,838 |
• | Identification of the contract, or contracts, with a customer; |
• | Identification of the performance obligations in the contract; |
• | Determination of the transaction price; |
• | Allocation of the transaction price to the performance obligations in the contract; and |
• | Recognition of revenue when, or as, the Company satisfies a performance obligation. |
December 31, 2021 | December 31, 2020 | |||||||
Cash and cash equivalents | $ | 28,565 | $ | 4,818 | ||||
Restricted cash | 130 | 116 | ||||||
$ | 28,695 | $ | 4,934 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Prepaid expenses | $ | 1,191 | $ | 734 | ||||
Operating lease right-of-use | — | 230 | ||||||
Receivable—Privateer Management (see also Note 13) | — | 263 | ||||||
Other current assets | 156 | 381 | ||||||
$ | 1,347 | $ | 1,608 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Furniture and equipment | $ | 1,049 | $ | 1,062 | ||||
Leasehold improvements | 2 | 23 | ||||||
1,051 | 1,085 | |||||||
Less: accumulated depreciation and amortization | (738 | ) | (562 | ) | ||||
$ | 313 | $ | 523 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Accrued bonuses | $ | 3,668 | $ | 1,387 | ||||
Other employee-related liabilities | 2,131 | $ | 1,418 | |||||
Accrued interest | 1,313 | — | ||||||
Lease liability | — | 183 | ||||||
Other accrued expenses 1 | 1,213 | 577 | ||||||
$ | 8,325 | $ | 3,565 | |||||
1 | There are no individual items within this balance that exceed 10% of the total of the table. |
2021 | 2020 | |||||||
Advertising | $ | 42,580 | $ | 36,036 | ||||
Other services | 456 | 356 | ||||||
$ | 43,036 | $ | 36,392 | |||||
2021 | 2020 | |||||||
United States | $ | 39,366 | $ | 33,328 | ||||
All other countries | 3,670 | 3,064 | ||||||
$ | 43,036 | $ | 36,392 | |||||
2021 | 2020 | |||||||
Over time | ||||||||
Retail 1 | $ | 33,628 | $ | 29,591 | ||||
Brands 2 | 5,904 | 4,677 | ||||||
$ | 39,532 | $ | 34,268 | |||||
Point in time | ||||||||
Brands 3 | 3,504 | 2,124 | ||||||
$ | 43,036 | $ | 36,392 | |||||
1 | Revenues from subscription services and display ads |
2 | Revenues from brand profile subscriptions and digital media (including display ads and audience extension) |
3 | Revenues from branded content and channel advertising (including direct to consumer email) |
2021 | 2020 | |||||||
Balance, beginning of period | $ | 1,131 | $ | 614 | ||||
Add: provision for doubtful accounts | 1,177 | 1,590 | ||||||
Less: write-offs | $ | (460 | ) | $ | (1,073 | ) | ||
Balance, end of period | $ | 1,848 | $ | 1,131 | ||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 1,585 | $ | 2,086 | ||||
Add: net increase in current period contract liabilities | 1,936 | 1,585 | ||||||
Less: revenue recognized from beginning balance | (1,546 | ) | (2,086 | ) | ||||
Balance, end of period | $ | 1,975 | $ | 1,585 | ||||
2021 | 2020 | |||||||
United States | $ | (12,142 | ) | $ | (9,687 | ) | ||
Foreign | 118 | (277 | ) | |||||
$ | (12,024 | ) | $ | (9,964 | ) | |||
2021 | 2020 | |||||||
Federal tax benefit at statutory rate | $ | (2,525 | ) | $ | (2,093 | ) | ||
State income tax benefit at statutory rate, net of federal benefit | (359 | ) | (316 | ) | ||||
Permanent differences | 282 | 197 | ||||||
Change in valuation allowance | 2,626 | 2,206 | ||||||
Deferred adjustments | 6 | 595 | ||||||
Net operating loss carryback – CARES Act | — | (685 | ) | |||||
Other adjustments, net | (30 | ) | 96 | |||||
Provision for income taxes | $ | — | $ | — | ||||
2021 | 2020 | |||||||
Deferred tax assets | ||||||||
Net operating loss carryforwards – domestic | $ | 12,610 | $ | 9,895 | ||||
Net operating loss carryforwards – foreign | 1,220 | 1,252 | ||||||
Intangible assets | 12,426 | 13,576 | ||||||
Accruals | 1,398 | 659 | ||||||
Interest limitation | 324 | — | ||||||
Other | 60 | 118 | ||||||
Total deferred tax assets | $ | 28,038 | $ | (25,500 | ) | |||
Valuation allowance | (28,027 | ) | (25,401 | ) | ||||
Total deferred tax assets, net of allowance | $ | 11 | $ | 99 | ||||
Deferred tax liabilities | ||||||||
Other | $ | (11 | ) | $ | (99 | ) | ||
Total deferred tax liabilities | $ | (11 | ) | $ | (99 | ) | ||
Total deferred tax assets, net | $ | — | $ | — | ||||
2021 | 2020 | |||||||||||||||||||||||
Par Value | Voting Rights | Authorized | Outstanding | Authorized | Outstanding | |||||||||||||||||||
Class 1 common stock | $ | 0.0001 | 10 votes per share | 74,500 | 28,564 | 74,500 | 28,564 | |||||||||||||||||
Class 2 common stock | $ | 0.0001 | 1 vote per share | 119,000 | 41,892 | 119,000 | 41,892 | |||||||||||||||||
Class 3 common stock | $ | 0.0001 | no voting rights | 17,751 | 5,956 | 16,151 | 4,939 | |||||||||||||||||
211,251 | 76,412 | 209,651 | 75,395 | |||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Par Value | Voting Rights | Authorized | Outstanding | Authorized | Outstanding | |||||||||||||||||||
Class 1 common stock | $ | 0.0001 | 10 votes per share | 74,500 | 28,564 | 74,500 | 28,564 | |||||||||||||||||
Class 2 common stock | $ | 0.0001 | 1 vote per share | 119,000 | 41,892 | 119,000 | 41,892 | |||||||||||||||||
Class 3 common stock | $ | 0.0001 | no voting rights | 17,751 | 5,956 | 16,151 | 4,939 | |||||||||||||||||
211,251 | 76,412 | 209,651 | 75,395 | |||||||||||||||||||||
Number of Shares | ||||
Stock options outstanding | 11,729 | |||
Stock options available for future grants | 67 | |||
Class 1 common stock | 28,564 | |||
Class 3 common stock | 5,956 | |||
46,316 | ||||
2021 | 2020 | |||||||
Risk-free interest rate | 1.15 | % | 0.63 | % | ||||
Expected term in years | 5.9 | 5.5 | ||||||
Expected volatility | 61 | % | 58 | % | ||||
Expected dividend yield | 0 | % | 0 | % |
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||
Outstanding at December 31, 2020 | 5,765 | 0.33 | ||||||||||||||
Granted | 7,818 | 0.70 | ||||||||||||||
Exercised | (1,017 | ) | 0.35 | |||||||||||||
Forfeited or expired | (837 | ) | 0.37 | |||||||||||||
Outstanding at December 31, 2021 | 11,729 | $ | 0.58 | $ | 24,018 | 8.85 | ||||||||||
Vested and exercisable | 4,203 | $ | 0.33 | $ | 10,019 | 8.23 |
Number of Shares | Weighted Average Exercise Price | Other Liabilities | ||||||||||
Unvested at December 31, 2019 | 1,015 | $ | 0.65 | $ | 663 | |||||||
Vested | (516 | ) | 0.54 | (279 | ) | |||||||
Forfeited or expired | (464 | ) | $ | 0.77 | $ | (357 | ) | |||||
Unvested at December 31, 2020 | 35 | $ | 0.77 | $ | 27 | |||||||
Vested | (35 | ) | $ | 0.77 | $ | (27 | ) | |||||
Unvested at December 31, 2021 | — | $ | — | $ | — | |||||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Net loss (numerator) | $ | (12,024 | ) | $ | (9,964 | ) | ||
Weighted average shares outstanding (denominator) | 75,791 | 76,431 | ||||||
Basic and diluted net loss per share | $ | (0.16 | ) | $ | (0.13 | ) | ||
Year Ended December 31, 2021 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss (numerator) | $ | (4,532 | ) | $ | (6,646 | ) | $ | (846 | ) | |||
Weighted average shares outstanding (denominator) | 28,564 | 41,892 | 5,335 | |||||||||
Basic and diluted net loss per share | $ | (0.16 | ) | $ | (0.16 | ) | $ | (0.16 | ) | |||
Year Ended December 31, 2020 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss (numerator) | $ | (3,725 | ) | $ | (5,460 | ) | $ | (779 | ) | |||
Weighted average shares outstanding (denominator) | 28,570 | 41,886 | 5,975 | |||||||||
Basic and diluted net loss per share | $ | (0.13 | ) | $ | (0.13 | ) | $ | (0.13 | ) | |||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Shares subject to outstanding common stock options | 11,729 | 6 | ||||||
Shares subject to convertible promissory notes | 39,433 | — | ||||||
Series A preferred stock | 18,702 | 18,702 | ||||||
69,864 | 18,708 | |||||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue: | ||||||||
Retail | $ | 33,628 | 29,591 | |||||
Brands | 9,408 | 6,801 | ||||||
Total revenue | $ | 43,036 | $ | 36,392 | ||||
Gross profit: | ||||||||
Retail | 30,435 | 26,290 | ||||||
Brands | 7,618 | 5,140 | ||||||
Total gross profit | $ | 38,053 | $ | 31,430 | ||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net loss | $ | (19,376 | ) | $ | (1,109 | ) | ||
Weighted average shares outstanding | 37,525 | 30,904 | ||||||
Basic and diluted net loss per share | $ | (0.52 | ) | $ | (0.04 | ) |
Three Months Ended March 31, 2022 | ||||||||||||||||
Class 1 | Class 2 | Class 3 | Common | |||||||||||||
Net loss | $ | (2,748 | ) | $ | (4,030 | ) | $ | (585 | ) | $ | (12,013 | ) | ||||
Weighted average shares outstanding | 3,543 | 5,196 | 754 | 35,206 | ||||||||||||
Basic and diluted net loss per share | $ | (0.78 | ) | $ | (0.78 | ) | $ | (0.78 | ) | $ | (0.34 | ) |
Three Months Ended March 31, 2021 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss | $ | (420 | ) | $ | (616 | ) | $ | (73 | ) | |||
Weighted average shares outstanding | 9,379 | 13,755 | 1,629 | |||||||||
Basic and diluted net loss per share | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.04 | ) |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Shares subject to outstanding common stock options | 3,681 | 1,827 | ||||||
Shares subject to convertible promissory notes | 2,400 | — | ||||||
Shares subject to shareholder earn-out rights | 5,429 | — | ||||||
Shares subject to Public Warrants | 6,501 | — | ||||||
Shares subject to Private Warrants | 3,950 | — | ||||||
Escrow Shares (see Note 12) | 1,625 | — | ||||||
Series A preferred stock | — | 6,140 | ||||||
23,586 | 7,967 | |||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue: | ||||||||
Retail | $ | 9,179 | 7,821 | |||||
Brands | 2,241 | 1,654 | ||||||
Total revenue | $ | 11,420 | $ | 9,475 | ||||
Gross profit: | ||||||||
Retail | 8,139 | 7,091 | ||||||
Brands | 1,826 | 1,294 | ||||||
Total gross profit | $ | 9,965 | $ | 8,385 | ||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | March 31, 2022 | Gain (Loss) | February 4, 2022 | ||||||||||||
Private Warrants derivative liability | 3 | $ | 7,989 | $ | (4,073 | ) | $ | 3,916 | ||||||||
Forward share purchase agreements derivative liability | 3 | 7,452 | 6,718 | 14,170 | ||||||||||||
Escrow Shares derivative liability | 3 | 10,129 | (3,261 | ) | 6,868 | |||||||||||
Shareholder earn-out rights derivative liability | 3 | 35,912 | (9,781 | ) | 26,131 | |||||||||||
Total | $ | 61,482 | $ | (10,397 | ) | $ | 51,085 |
February 4, 2022 | $ | 3,916 | ||
Change in fair value | 4,073 | |||
March 31, 2022 | $ | 7,989 | ||
March 31, 2022 | February 4, 2022 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 36.7 | % | 34.3 | % | ||||
Term (in years) | 4.85 | 5.00 | ||||||
Risk-free rate | 2.4 | % | 1.8 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 14,170 | ||
Change in fair value | (6,718 | ) | ||
March 31, 2022 | $ | 7,452 | ||
March 31, 2022 | February 4, 2022 | |||||||
Exercise price—one agreement | $ | 10.16 | $ | 10.16 | ||||
Exercise price—three agreements | $ | 10.01 | $ | 10.01 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 72.6 | % | 63.9 | % | ||||
Term (in years) | 0.09 | 0.24 | ||||||
Risk-free rate | 0.2 | % | 0.2 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 6,868 | ||
Change in fair value | 3,261 | |||
March 31, 2022 | $ | 10,129 | ||
March 31, 2022 | February 4, 2022 | |||||||
First stock price trigger | $ | 13.50 | $ | 13.50 | ||||
Second stock price trigger | $ | 15.50 | $ | 15.50 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 63.0 | % | 64.0 | % | ||||
Term (in years) | 2.85 | 3.00 | ||||||
Risk-free rate | 2.4 | % | 1.6 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 26,131 | ||
Change in fair value | 9,781 | |||
March 31, 2022 | $ | 35,912 | ||
March 31, 2022 | February 4, 2022 | |||||||
First stock price trigger | $ | 13.50 | $ | 13.50 | ||||
Second stock price trigger | $ | 15.50 | $ | 15.50 | ||||
First revenue trigger | $ | 65,000 | $ | 65,000 | ||||
Second revenue trigger | $ | 101,000 | $ | 101,000 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
2022 Revenue assumption | $ | 55,500 | $ | 55,500 | ||||
Volatility | 63.0 | % | 64.0 | % | ||||
Term (in years) | 2.85 | 3.00 | ||||||
Risk-free rate | 2.4 | % | 1.6 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 28,565 | $ | 4,818 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,848 and $1,131, respectively | 2,958 | 2,398 | ||||||
Deferred transaction costs | 2,840 | — | ||||||
Prepaid expenses and other current assets | 1,347 | 1,608 | ||||||
Restricted cash | 130 | 116 | ||||||
Total current assets | 35,840 | 8,940 | ||||||
Property and equipment, net | 313 | 523 | ||||||
Total assets | $ | 36,153 | $ | 9,463 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 3,048 | $ | 1,599 | ||||
Accrued expenses and other current liabilities | 8,325 | 3,565 | ||||||
Related party payables | — | 645 | ||||||
Deferred revenue | 1,975 | 1,585 | ||||||
Convertible promissory notes, net | 31,377 | — | ||||||
Total current liabilities | 44,725 | 7,394 | ||||||
Commitments and contingencies (Note 7) | ||||||||
Stockholders’ equity (deficit) | ||||||||
Series A preferred stock; $0.0001 par value; 20,033 authorized, 18,702 issued and outstanding, and aggregate liquidation preference of $19,436 at December 31, 2021 and December 31, 2020, respectively | 2 | 2 | ||||||
Common stock; $0.0001 par value; 211,251 and 209,651 authorized at December 31, 2021 and December 31, 2020, respectively; 76,412 and 75,395 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 8 | 8 | ||||||
Additional paid-in capital | 61,188 | 59,805 | ||||||
Accumulated deficit | (69,770 | ) | (57,746 | ) | ||||
Total stockholders’ equity (deficit) | (8,572 | ) | 2,069 | |||||
Total liabilities and stockholders’ equity (deficit) | $ | 36,153 | $ | 9,463 | ||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 43,036 | $ | 36,392 | ||||
Cost of revenue | 4,983 | 4,962 | ||||||
Gross profit | 38,053 | 31,430 | ||||||
Operating expenses | ||||||||
Sales and marketing | 19,640 | 13,189 | ||||||
Product development | 13,896 | 14,485 | ||||||
General and administrative | 15,142 | 13,052 | ||||||
Total operating expenses | 48,678 | 40,726 | ||||||
Loss from operations | (10,625 | ) | (9,296 | ) | ||||
Interest expense, net | (1,349 | ) | (637 | ) | ||||
Other expense, net | (50 | ) | (31 | ) | ||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | ||
Basic and diluted loss per share | $ | (0.16 | ) | $ | (0.13 | ) | ||
Weighted-average basic and diluted shares outstanding | 75,791 | 76,431 |
Series A Preferred Stock | Class 1, Class 2, and Class 3 Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance at January 1, 2020 | — | $ | — | 76,776 | $ | 8 | $ | 42,588 | $ | (47,782 | ) | $ | (5,186 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (9,964 | ) | (9,964 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,158 | — | 1,158 | |||||||||||||||||||||
Exercise of stock options | — | — | 548 | — | 733 | — | 733 | |||||||||||||||||||||
Common stock repurchased | (1,929 | ) | — | — | ||||||||||||||||||||||||
Conversion of promissory notes into Series A preferred stock, net | 15,214 | 2 | 11,836 | 11,838 | ||||||||||||||||||||||||
Series A preferred stock issued, net | 3,488 | — | — | — | 3,490 | — | 3,490 | |||||||||||||||||||||
Balance at December 31, 2020 | 18,702 | $ | 2 | 75,395 | $ | 8 | $ | 59,805 | $ | (57,746 | ) | $ | 2,069 | |||||||||||||||
Net loss | — | — | — | — | — | (12,024 | ) | (12,024 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,022 | — | 1,022 | |||||||||||||||||||||
Exercise of stock options | — | — | 1,017 | — | 361 | — | 361 | |||||||||||||||||||||
Balance at December 31, 2021 | 18,702 | $ | 2 | 76,412 | $ | 8 | $ | 61,188 | $ | (69,770 | ) | $ | (8,572 | ) | ||||||||||||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | ||
Adjustments: | ||||||||
Depreciation | 253 | 312 | ||||||
Stock-based compensation expense | 1,022 | 1,158 | ||||||
Bad debt expense | 1,177 | 1,590 | ||||||
Noncash lease costs | 230 | 248 | ||||||
Noncash interest expense associated with convertible debt | 1,370 | 694 | ||||||
Other | 44 | 308 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,802 | ) | (2,138 | ) | ||||
Prepaid expenses and other current assets | (283 | ) | 87 | |||||
Accounts payable | (397 | ) | (3,327 | ) | ||||
Accrued expenses and other current liabilities | 3,172 | 1,741 | ||||||
Deferred revenue | 390 | (501 | ) | |||||
Net cash used in operating activities | (6,848 | ) | (9,792 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (87 | ) | (5 | ) | ||||
Proceeds from sale of property and equipment | — | 20 | ||||||
Net cash provided by (used in) investing activities | (87 | ) | 15 | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 334 | 97 | ||||||
Proceeds from convertible promissory notes | 31,470 | 4,624 | ||||||
Proceeds from Series A preferred stock, net | — | 3,490 | ||||||
Proceeds from related party payables | — | 645 | ||||||
Transaction costs associated with recapitalization | (855 | ) | — | |||||
Payments on related party payables | (253 | ) | — | |||||
Net cash provided by financing activities | 30,696 | 8,856 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 23,761 | (921 | ) | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 4,934 | 5,855 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 28,695 | $ | 4,934 | ||||
Supplemental disclosure of non-cash financing activities | ||||||||
Transaction costs associated with recapitalization in accounts payable and accrued expenses | $ | 1,985 | $ | — | ||||
Conversion of promissory notes into Series A preferred stock, net | — | $ | 11,838 |
• | Identification of the contract, or contracts, with a customer; |
• | Identification of the performance obligations in the contract; |
• | Determination of the transaction price; |
• | Allocation of the transaction price to the performance obligations in the contract; and |
• | Recognition of revenue when, or as, the Company satisfies a performance obligation. |
December 31, 2021 | December 31, 2020 | |||||||
Cash and cash equivalents | $ | 28,565 | $ | 4,818 | ||||
Restricted cash | 130 | 116 | ||||||
$ | 28,695 | $ | 4,934 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Prepaid expenses | $ | 1,191 | $ | 734 | ||||
Operating lease right-of-use | — | 230 | ||||||
Receivable—Privateer Management (see also Note 13) | — | 263 | ||||||
Other current assets | 156 | 381 | ||||||
$ | 1,347 | $ | 1,608 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Furniture and equipment | $ | 1,049 | $ | 1,062 | ||||
Leasehold improvements | 2 | 23 | ||||||
1,051 | 1,085 | |||||||
Less: accumulated depreciation and amortization | (738 | ) | (562 | ) | ||||
$ | 313 | $ | 523 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Accrued bonuses | $ | 3,668 | $ | 1,387 | ||||
Other employee-related liabilities | 2,131 | $ | 1,418 | |||||
Accrued interest | 1,313 | — | ||||||
Lease liability | — | 183 | ||||||
Other accrued expenses 1 | 1,213 | 577 | ||||||
$ | 8,325 | $ | 3,565 | |||||
1 | There are no individual items within this balance that exceed 10% of the total of the table. |
2021 | 2020 | |||||||
Advertising | $ | 42,580 | $ | 36,036 | ||||
Other services | 456 | 356 | ||||||
$ | 43,036 | $ | 36,392 | |||||
2021 | 2020 | |||||||
United States | $ | 39,366 | $ | 33,328 | ||||
All other countries | 3,670 | 3,064 | ||||||
$ | 43,036 | $ | 36,392 | |||||
2021 | 2020 | |||||||
Over time | ||||||||
Retail 1 | $ | 33,628 | $ | 29,591 | ||||
Brands 2 | 5,904 | 4,677 | ||||||
$ | 39,532 | $ | 34,268 | |||||
Point in time | ||||||||
Brands 3 | 3,504 | 2,124 | ||||||
$ | 43,036 | $ | 36,392 | |||||
1 | Revenues from subscription services and display ads |
2 | Revenues from brand profile subscriptions and digital media (including display ads and audience extension) |
3 | Revenues from branded content and channel advertising (including direct to consumer email) |
2021 | 2020 | |||||||
Balance, beginning of period | $ | 1,131 | $ | 614 | ||||
Add: provision for doubtful accounts | 1,177 | 1,590 | ||||||
Less: write-offs | $ | (460 | ) | $ | (1,073 | ) | ||
Balance, end of period | $ | 1,848 | $ | 1,131 | ||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 1,585 | $ | 2,086 | ||||
Add: net increase in current period contract liabilities | 1,936 | 1,585 | ||||||
Less: revenue recognized from beginning balance | (1,546 | ) | (2,086 | ) | ||||
Balance, end of period | $ | 1,975 | $ | 1,585 | ||||
2021 | 2020 | |||||||
United States | $ | (12,142 | ) | $ | (9,687 | ) | ||
Foreign | 118 | (277 | ) | |||||
$ | (12,024 | ) | $ | (9,964 | ) | |||
2021 | 2020 | |||||||
Federal tax benefit at statutory rate | $ | (2,525 | ) | $ | (2,093 | ) | ||
State income tax benefit at statutory rate, net of federal benefit | (359 | ) | (316 | ) | ||||
Permanent differences | 282 | 197 | ||||||
Change in valuation allowance | 2,626 | 2,206 | ||||||
Deferred adjustments | 6 | 595 | ||||||
Net operating loss carryback – CARES Act | — | (685 | ) | |||||
Other adjustments, net | (30 | ) | 96 | |||||
Provision for income taxes | $ | — | $ | — | ||||
2021 | 2020 | |||||||
Deferred tax assets | ||||||||
Net operating loss carryforwards – domestic | $ | 12,610 | $ | 9,895 | ||||
Net operating loss carryforwards – foreign | 1,220 | 1,252 | ||||||
Intangible assets | 12,426 | 13,576 | ||||||
Accruals | 1,398 | 659 | ||||||
Interest limitation | 324 | — | ||||||
Other | 60 | 118 | ||||||
Total deferred tax assets | $ | 28,038 | $ | (25,500 | ) | |||
Valuation allowance | (28,027 | ) | (25,401 | ) | ||||
Total deferred tax assets, net of allowance | $ | 11 | $ | 99 | ||||
Deferred tax liabilities | ||||||||
Other | $ | (11 | ) | $ | (99 | ) | ||
Total deferred tax liabilities | $ | (11 | ) | $ | (99 | ) | ||
Total deferred tax assets, net | $ | — | $ | — | ||||
2021 | 2020 | |||||||||||||||||||||||
Par Value | Voting Rights | Authorized | Outstanding | Authorized | Outstanding | |||||||||||||||||||
Class 1 common stock | $ | 0.0001 | 10 votes per share | 74,500 | 28,564 | 74,500 | 28,564 | |||||||||||||||||
Class 2 common stock | $ | 0.0001 | 1 vote per share | 119,000 | 41,892 | 119,000 | 41,892 | |||||||||||||||||
Class 3 common stock | $ | 0.0001 | no voting rights | 17,751 | 5,956 | 16,151 | 4,939 | |||||||||||||||||
211,251 | 76,412 | 209,651 | 75,395 | |||||||||||||||||||||
Number of Shares | ||||
Stock options outstanding | 11,729 | |||
Stock options available for future grants | 67 | |||
Class 1 common stock | 28,564 | |||
Class 3 common stock | 5,956 | |||
46,316 | ||||
2021 | 2020 | |||||||
Risk-free interest rate | 1.15 | % | 0.63 | % | ||||
Expected term in years | 5.9 | 5.5 | ||||||
Expected volatility | 61 | % | 58 | % | ||||
Expected dividend yield | 0 | % | 0 | % |
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||
Outstanding at December 31, 2020 | 5,765 | 0.33 | ||||||||||||||
Granted | 7,818 | 0.70 | ||||||||||||||
Exercised | (1,017 | ) | 0.35 | |||||||||||||
Forfeited or expired | (837 | ) | 0.37 | |||||||||||||
Outstanding at December 31, 2021 | 11,729 | $ | 0.58 | $ | 24,018 | 8.85 | ||||||||||
Vested and exercisable | 4,203 | $ | 0.33 | $ | 10,019 | 8.23 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Net loss | $ | (19,376 | ) | $ | (1,109 | ) | ||
Weighted average shares outstanding | 37,525 | 30,904 | ||||||
Basic and diluted net loss per share | $ | (0.52 | ) | $ | (0.04 | ) |
Three Months Ended March 31, 2022 | ||||||||||||||||
Class 1 | Class 2 | Class 3 | Common | |||||||||||||
Net loss | $ | (2,748 | ) | $ | (4,030 | ) | $ | (585 | ) | $ | (12,013 | ) | ||||
Weighted average shares outstanding | 3,543 | 5,196 | 754 | 35,206 | ||||||||||||
Basic and diluted net loss per share | $ | (0.78 | ) | $ | (0.78 | ) | $ | (0.78 | ) | $ | (0.34 | ) |
Three Months Ended March 31, 2021 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss | $ | (420 | ) | $ | (616 | ) | $ | (73 | ) | |||
Weighted average shares outstanding | 9,379 | 13,755 | 1,629 | |||||||||
Basic and diluted net loss per share | $ | (0.04 | ) | $ | (0.04 | ) | $ | (0.04 | ) |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Shares subject to outstanding common stock options | 3,681 | 1,827 | ||||||
Shares subject to convertible promissory notes | 2,400 | — | ||||||
Shares subject to shareholder earn-out rights | 5,429 | — | ||||||
Shares subject to Public Warrants | 6,501 | — | ||||||
Shares subject to Private Warrants | 3,950 | — | ||||||
Escrow Shares (see Note 12) | 1,625 | — | ||||||
Series A preferred stock | — | 6,140 | ||||||
23,586 | 7,967 | |||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue: | ||||||||
Retail | $ | 9,179 | 7,821 | |||||
Brands | 2,241 | 1,654 | ||||||
Total revenue | $ | 11,420 | $ | 9,475 | ||||
Gross profit: | ||||||||
Retail | 8,139 | 7,091 | ||||||
Brands | 1,826 | 1,294 | ||||||
Total gross profit | $ | 9,965 | $ | 8,385 | ||||
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | March 31, 2022 | Gain (Loss) | February 4, 2022 | ||||||||||||
Private Warrants derivative liability | 3 | $ | 7,989 | $ | (4,073 | ) | $ | 3,916 | ||||||||
Forward share purchase agreements derivative liability | 3 | 7,452 | 6,718 | 14,170 | ||||||||||||
Escrow Shares derivative liability | 3 | 10,129 | (3,261 | ) | 6,868 | |||||||||||
Shareholder earn-out rights derivative liability | 3 | 35,912 | (9,781 | ) | 26,131 | |||||||||||
Total | $ | 61,482 | $ | (10,397 | ) | $ | 51,085 |
February 4, 2022 | $ | 3,916 | ||
Change in fair value | 4,073 | |||
March 31, 2022 | $ | 7,989 | ||
March 31, 2022 | February 4, 2022 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 36.7 | % | 34.3 | % | ||||
Term (in years) | 4.85 | 5.00 | ||||||
Risk-free rate | 2.4 | % | 1.8 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 14,170 | ||
Change in fair value | (6,718 | ) | ||
March 31, 2022 | $ | 7,452 | ||
March 31, 2022 | February 4, 2022 | |||||||
Exercise price—one agreement | $ | 10.16 | $ | 10.16 | ||||
Exercise price—three agreements | $ | 10.01 | $ | 10.01 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 72.6 | % | 63.9 | % | ||||
Term (in years) | 0.09 | 0.24 | ||||||
Risk-free rate | 0.2 | % | 0.2 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 6,868 | ||
Change in fair value | 3,261 | |||
March 31, 2022 | $ | 10,129 | ||
March 31, 2022 | February 4, 2022 | |||||||
First stock price trigger | $ | 13.50 | $ | 13.50 | ||||
Second stock price trigger | $ | 15.50 | $ | 15.50 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
Volatility | 63.0 | % | 64.0 | % | ||||
Term (in years) | 2.85 | 3.00 | ||||||
Risk-free rate | 2.4 | % | 1.6 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
February 4, 2022 | $ | 26,131 | ||
Change in fair value | 9,781 | |||
March 31, 2022 | $ | 35,912 | ||
March 31, 2022 | February 4, 2022 | |||||||
First stock price trigger | $ | 13.50 | $ | 13.50 | ||||
Second stock price trigger | $ | 15.50 | $ | 15.50 | ||||
First revenue trigger | $ | 65,000 | $ | 65,000 | ||||
Second revenue trigger | $ | 101,000 | $ | 101,000 | ||||
Stock price | $ | 8.28 | $ | 6.53 | ||||
2022 Revenue assumption | $ | 55,500 | $ | 55,500 | ||||
Volatility | 63.0 | % | 64.0 | % | ||||
Term (in years) | 2.85 | 3.00 | ||||||
Risk-free rate | 2.4 | % | 1.6 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 175,886 | $ | 171,540 | ||||
Prepaid expenses and other current assets | 182,010 | 99,735 | ||||||
Total Current Assets | 357,896 | 271,275 | ||||||
Cash and marketable securities held in Trust Account | 90,849,312 | 130,681,047 | ||||||
TOTAL ASSETS | $ | 91,207,208 | $ | 130,952,322 | ||||
LIABILITIES, COMMON STOCK SUBJECT TO REDEMPTION AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 1,602,001 | $ | 147,830 | ||||
Income taxes payable | 0 | 5,883 | ||||||
Advances from related party | 16,458 | 16,458 | ||||||
Promissory note – related party | 800,339 | 339 | ||||||
Total Current Liabilities | 2,418,798 | 170,510 | ||||||
Derivative liability | 2,174,989 | 0 | ||||||
Warrant liability | 6,982,603 | 3,950,311 | ||||||
Deferred tax liability | 0 | 432 | ||||||
TOTAL LIABILITIES | 11,576,390 | 4,121,253 | ||||||
Commitments | 0 | 0 | ||||||
Common stock subject to possible redemption (9,074,117 and 13,001,552 shares at redemption value as of December 31, 2021 and 2020, respectively) | 90,830,542 | 130,544,959 | ||||||
Stockholders’ Deficit | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0 | 0 | ||||||
Common stock, $0.0001 par value; 50,000,000 shares authorized; 3,370,388 and 3,370,388 shares issued and outstanding (excluding 9,074,117 and 13,001,552 shares subject to possible redemption) at December 31, 2021 and 2020, respectively | 337 | 337 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (11,200,061 | ) | (3,714,227 | ) | ||||
Total Stockholders’ Deficit | (11,199,724 | ) | (3,713,890 | ) | ||||
TOTAL LIABILITIES, COMMON STOCK SUBJECT TO REDEMPTION AND STOCKHOLDERS’ DEFICIT | $ | 91,207,208 | $ | 130,952,322 | ||||
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 28,565 | $ | 4,818 | ||||
Accounts receivable, net of allowance for doubtful accounts of $1,848 and $1,131, respectively | 2,958 | 2,398 | ||||||
Deferred transaction costs | 2,840 | — | ||||||
Prepaid expenses and other current assets | 1,347 | 1,608 | ||||||
Restricted cash | 130 | 116 | ||||||
Total current assets | 35,840 | 8,940 | ||||||
Property and equipment, net | 313 | 523 | ||||||
Total assets | $ | 36,153 | $ | 9,463 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 3,048 | $ | 1,599 | ||||
Accrued expenses and other current liabilities | 8,325 | 3,565 | ||||||
Related party payables | — | 645 | ||||||
Deferred revenue | 1,975 | 1,585 | ||||||
Convertible promissory notes, net | 31,377 | — | ||||||
Total current liabilities | 44,725 | 7,394 | ||||||
Commitments and contingencies (Note 7) | ||||||||
Stockholders’ equity (deficit) | ||||||||
Series A preferred stock; $0.0001 par value; 20,033 authorized, 18,702 issued and outstanding, and aggregate liquidation preference of $19,436 at December 31, 2021 and December 31, 2020, respectively | 2 | 2 | ||||||
Common stock; $0.0001 par value; 211,251 and 209,651 authorized at December 31, 2021 and December 31, 2020, respectively; 76,412 and 75,395 shares issued and outstanding at December 31, 2021 and December 31, 2020, respectively | 8 | 8 | ||||||
Additional paid-in capital | 61,188 | 59,805 | ||||||
Accumulated deficit | (69,770 | ) | (57,746 | ) | ||||
Total stockholders’ equity (deficit) | (8,572 | ) | 2,069 | |||||
Total liabilities and stockholders’ equity (deficit) | $ | 36,153 | $ | 9,463 | ||||
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Operating costs | $ | 2,699,363 | $ | 661,218 | ||||
Loss from operations | (2,699,363 | ) | (661,218 | ) | ||||
Other income (expense): | ||||||||
Interest earned on marketable securities held in Trust Account | 29,303 | 787,350 | ||||||
Unrealized gain on marketable securities held in Trust Account | 0 | 2,056 | ||||||
Change in fair value of warrant liability | (3,032,292 | ) | (1,975,156 | ) | ||||
Other expense, net | (3,002,989 | ) | (1,185,750 | ) | ||||
Loss before provision for income taxes | (5,702,352 | ) | (1,846,968 | ) | ||||
Provision for income taxes | 0 | (27,112 | ) | |||||
Net loss | $ | (5,702,352 | ) | $ | (1,874,080 | ) | ||
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | 12,695,279 | 13,001,552 | ||||||
Basic and diluted net loss per share, Common stock subject to possible redemption | $ | (0.35 | ) | $ | (0.11 | ) | ||
Basic and diluted weighted average shares outstanding, Common Stock | 3,370,388 | 3,370,388 | ||||||
Basic and diluted net loss per share, Common Stock | $ | (0.35 | ) | $ | (0.11 | ) |
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 43,036 | $ | 36,392 | ||||
Cost of revenue | 4,983 | 4,962 | ||||||
Gross profit | 38,053 | 31,430 | ||||||
Operating expenses | ||||||||
Sales and marketing | 19,640 | 13,189 | ||||||
Product development | 13,896 | 14,485 | ||||||
General and administrative | 15,142 | 13,052 | ||||||
Total operating expenses | 48,678 | 40,726 | ||||||
Loss from operations | (10,625 | ) | (9,296 | ) | ||||
Interest expense, net | (1,349 | ) | (637 | ) | ||||
Other expense, net | (50 | ) | (31 | ) | ||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | ||
Basic and diluted loss per share | $ | (0.16 | ) | $ | (0.13 | ) | ||
Weighted-average basic and diluted shares outstanding | 75,791 | 76,431 |
Common Stock | Additional Paid- in Capital | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance – December 31, 2019 | 3,370,388 | $ | 337 | $ | 0 | $ | (1,492,550 | ) | $ | (1,492,213 | ) | |||||||||
Accretion of common stock to redemption amount | — | — | — | (347,597 | ) | (347,597 | ) | |||||||||||||
Net loss | — | — | — | (1,874,080 | ) | (1,874,080 | ) | |||||||||||||
Balance – December 31, 2020 | 3,370,388 | $ | 337 | $ | 0 | $ | (3,714,227 | ) | $ | (3,713,890 | ) | |||||||||
Initial classification of forward purchase agreements | — | — | (2,174,989 | ) | — | (2,174,989 | ) | |||||||||||||
Accretion of common stock to redemption amount | — | — | 2,174,989 | (1,783,482 | ) | 391,507 | ||||||||||||||
Net loss | — | — | — | (5,702,352 | ) | (5,702,352 | ) | |||||||||||||
Balance – December 31, 2021 | 3,370,388 | 337 | 0 | (11,200,061 | ) | (11,199,724 | ) | |||||||||||||
Series A Preferred Stock | Class 1, Class 2, and Class 3 Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance at January 1, 2020 | — | $ | — | 76,776 | $ | 8 | $ | 42,588 | $ | (47,782 | ) | $ | (5,186 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (9,964 | ) | (9,964 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,158 | — | 1,158 | |||||||||||||||||||||
Exercise of stock options | — | — | 548 | — | 733 | — | 733 | |||||||||||||||||||||
Common stock repurchased | (1,929 | ) | — | — | ||||||||||||||||||||||||
Conversion of promissory notes into Series A preferred stock, net | 15,214 | 2 | 11,836 | 11,838 | ||||||||||||||||||||||||
Series A preferred stock issued, net | 3,488 | — | — | — | 3,490 | — | 3,490 | |||||||||||||||||||||
Balance at December 31, 2020 | 18,702 | $ | 2 | 75,395 | $ | 8 | $ | 59,805 | $ | (57,746 | ) | $ | 2,069 | |||||||||||||||
Net loss | — | — | — | — | — | (12,024 | ) | (12,024 | ) | |||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,022 | — | 1,022 | |||||||||||||||||||||
Exercise of stock options | — | — | 1,017 | — | 361 | — | 361 | |||||||||||||||||||||
Balance at December 31, 2021 | 18,702 | $ | 2 | 76,412 | $ | 8 | $ | 61,188 | $ | (69,770 | ) | $ | (8,572 | ) | ||||||||||||||
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (5,702,352 | ) | $ | (1,874,080 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of warrant liability | 3,032,292 | 1,975,156 | ||||||
Interest earned on marketable securities held in Trust Account | (29,303 | ) | (787,350 | ) | ||||
Unrealized gain on marketable securities held in Trust Account | 0 | (2,056 | ) | |||||
Deferred tax (benefit) provision | (432 | ) | 384 | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses and other current assets | (82,275 | ) | 77,134 | |||||
Accrued expenses | 1,454,171 | 20,939 | ||||||
Income taxes payable | (5,883 | ) | (21,051 | ) | ||||
Net cash used in operating activities | (1,333,782 | ) | (610,924 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Cash withdrawn from Trust Account paid to redeeming stockholders | 39,322,910 | 0 | ||||||
Cash withdrawn from Trust Account for franchise tax, income tax payments and working capital needs | 538,128 | 419,894 | ||||||
Net cash provided by investing activities | 39,861,038 | 419,894 | ||||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from promissory note – related party | 800,000 | 0 | ||||||
Redemption of common stock | (39,322,910 | ) | 0 | |||||
Net cash used in financing activities | (38,522,910 | ) | 0 | |||||
Net Change in Cash | 4,346 | (191,030 | ) | |||||
Cash – Beginning of period | 171,540 | 362,570 | ||||||
Cash – End of period | $ | 175,886 | $ | 171,540 | ||||
Supplementary cash flow information: | ||||||||
Cash paid for income taxes | $ | 26,642 | $ | 47,779 | ||||
Non-cash investing and financing activities: | ||||||||
Accretion of common stock redemption amount | $ | (391,507 | ) | $ | 347,597 |
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (12,024 | ) | $ | (9,964 | ) | ||
Adjustments: | ||||||||
Depreciation | 253 | 312 | ||||||
Stock-based compensation expense | 1,022 | 1,158 | ||||||
Bad debt expense | 1,177 | 1,590 | ||||||
Noncash lease costs | 230 | 248 | ||||||
Noncash interest expense associated with convertible debt | 1,370 | 694 | ||||||
Other | 44 | 308 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (1,802 | ) | (2,138 | ) | ||||
Prepaid expenses and other current assets | (283 | ) | 87 | |||||
Accounts payable | (397 | ) | (3,327 | ) | ||||
Accrued expenses and other current liabilities | 3,172 | 1,741 | ||||||
Deferred revenue | 390 | (501 | ) | |||||
Net cash used in operating activities | (6,848 | ) | (9,792 | ) | ||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (87 | ) | (5 | ) | ||||
Proceeds from sale of property and equipment | — | 20 | ||||||
Net cash provided by (used in) investing activities | (87 | ) | 15 | |||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 334 | 97 | ||||||
Proceeds from convertible promissory notes | 31,470 | 4,624 | ||||||
Proceeds from Series A preferred stock, net | — | 3,490 | ||||||
Proceeds from related party payables | — | 645 | ||||||
Transaction costs associated with recapitalization | (855 | ) | — | |||||
Payments on related party payables | (253 | ) | — | |||||
Net cash provided by financing activities | 30,696 | 8,856 | ||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 23,761 | (921 | ) | |||||
Cash, cash equivalents, and restricted cash, beginning of period | 4,934 | 5,855 | ||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 28,695 | $ | 4,934 | ||||
Supplemental disclosure of non-cash financing activities | ||||||||
Transaction costs associated with recapitalization in accounts payable and accrued expenses | $ | 1,985 | $ | — | ||||
Conversion of promissory notes into Series A preferred stock, net | — | $ | 11,838 |
Gross proceeds | $ | 130,015,520 | ||
Less: common stock issuance costs | (3,392,993 | ) | ||
Plus: accretion of carrying value to redemption value | 3,574,835 | |||
Common stock subject to possible redemption, December 31, 2019 | 130,197,362 | |||
Plus: accretion of carrying value to redemption value | 347,597 | |||
Common stock subject to possible redemption, December 31, 2020 | 130,544,959 | |||
Less: | ||||
Initial classification of forward purchase agreements | (2,174,989 | ) | ||
Redemptions of common stock | (39,322,910 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 1,783,482 | |||
Common stock subject to possible redemption, December 31, 2021 | $ | 90,830,542 | ||
• | Identification of the contract, or contracts, with a customer; |
• | Identification of the performance obligations in the contract; |
• | Determination of the transaction price; |
• | Allocation of the transaction price to the performance obligations in the contract; and |
• | Recognition of revenue when, or as, the Company satisfies a performance obligation. |
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Allocation of net loss, common stock subject to possible redemption | $ | (4,506,066 | ) | $ | (1,488,275 | ) | ||
Weighted average shares outstanding, common stock subject to possible redemption | 12,695,279 | 13,001,552 | ||||||
Basic and diluted net loss per share, common stock subject to possible redemption | $ | (0.35 | ) | $ | (0.11 | ) | ||
Allocation of net loss, common stock | $ | (1,196,286 | ) | $ | (385,805 | ) | ||
Weighted average shares outstanding, common stock | 3,370,388 | 3,370,388 | ||||||
Basic and diluted net loss per share, common stock | $ | (0.35 | ) | $ | (0.11 | ) |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Deferred tax liability | ||||||||
Unrealized gain on marketable securities | $ | 0 | (432 | ) | ||||
Net operating loss carryforward | 199,880 | |||||||
Total deferred tax asset (liability) | 199,880 | (432 | ) | |||||
Valuation allowance | (199,880 | ) | 0 | |||||
Deferred tax liability | $ | 0 | $ | (432 | ) | |||
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Federal | ||||||||
Current | $ | 0 | $ | 26,728 | ||||
Deferred | (199,880 | ) | 384 | |||||
Change in valuation allowance | 199,880 | 0 | ||||||
Income tax provision | $ | 0 | $ | 27,112 | ||||
December 31, 2021 | December 31, 2020 | |||||||
Cash and cash equivalents | $ | 28,565 | $ | 4,818 | ||||
Restricted cash | 130 | 116 | ||||||
$ | 28,695 | $ | 4,934 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Prepaid expenses | $ | 1,191 | $ | 734 | ||||
Operating lease right-of-use | — | 230 | ||||||
Receivable—Privateer Management (see also Note 13) | — | 263 | ||||||
Other current assets | 156 | 381 | ||||||
$ | 1,347 | $ | 1,608 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Furniture and equipment | $ | 1,049 | $ | 1,062 | ||||
Leasehold improvements | 2 | 23 | ||||||
1,051 | 1,085 | |||||||
Less: accumulated depreciation and amortization | (738 | ) | (562 | ) | ||||
$ | 313 | $ | 523 | |||||
December 31, 2021 | December 31, 2020 | |||||||
Accrued bonuses | $ | 3,668 | $ | 1,387 | ||||
Other employee-related liabilities | 2,131 | $ | 1,418 | |||||
Accrued interest | 1,313 | — | ||||||
Lease liability | — | 183 | ||||||
Other accrued expenses 1 | 1,213 | 577 | ||||||
$ | 8,325 | $ | 3,565 | |||||
1 | There are no individual items within this balance that exceed 10% of the total of the table. |
2021 | 2020 | |||||||
Advertising | $ | 42,580 | $ | 36,036 | ||||
Other services | 456 | 356 | ||||||
$ | 43,036 | $ | 36,392 | |||||
2021 | 2020 | |||||||
United States | $ | 39,366 | $ | 33,328 | ||||
All other countries | 3,670 | 3,064 | ||||||
$ | 43,036 | $ | 36,392 | |||||
2021 | 2020 | |||||||
Over time | ||||||||
Retail 1 | $ | 33,628 | $ | 29,591 | ||||
Brands 2 | 5,904 | 4,677 | ||||||
$ | 39,532 | $ | 34,268 | |||||
Point in time | ||||||||
Brands 3 | 3,504 | 2,124 | ||||||
$ | 43,036 | $ | 36,392 | |||||
1 | Revenues from subscription services and display ads |
2 | Revenues from brand profile subscriptions and digital media (including display ads and audience extension) |
3 | Revenues from branded content and channel advertising (including direct to consumer email) |
Year Ended | ||||||||
December 31, 2021 | December 31, 2020 | |||||||
Statutory federal income tax rate | 21.0 | % | 21.0 | % | ||||
Change in fair value of warrant liability | (11.2 | )% | (22.5 | )% | ||||
Business combination expenses | (6.3 | )% | 0.0 | % | ||||
Valuation allowance | (3.5 | )% | 0.0 | % | ||||
Income tax provision | 0 | % | (1.5 | )% | ||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 1,131 | $ | 614 | ||||
Add: provision for doubtful accounts | 1,177 | 1,590 | ||||||
Less: write-offs | $ | (460 | ) | $ | (1,073 | ) | ||
Balance, end of period | $ | 1,848 | $ | 1,131 | ||||
2021 | 2020 | |||||||
Balance, beginning of period | $ | 1,585 | $ | 2,086 | ||||
Add: net increase in current period contract liabilities | 1,936 | 1,585 | ||||||
Less: revenue recognized from beginning balance | (1,546 | ) | (2,086 | ) | ||||
Balance, end of period | $ | 1,975 | $ | 1,585 | ||||
2021 | 2020 | |||||||
United States | $ | (12,142 | ) | $ | (9,687 | ) | ||
Foreign | 118 | (277 | ) | |||||
$ | (12,024 | ) | $ | (9,964 | ) | |||
2021 | 2020 | |||||||
Federal tax benefit at statutory rate | $ | (2,525 | ) | $ | (2,093 | ) | ||
State income tax benefit at statutory rate, net of federal benefit | (359 | ) | (316 | ) | ||||
Permanent differences | 282 | 197 | ||||||
Change in valuation allowance | 2,626 | 2,206 | ||||||
Deferred adjustments | 6 | 595 | ||||||
Net operating loss carryback – CARES Act | — | (685 | ) | |||||
Other adjustments, net | (30 | ) | 96 | |||||
Provision for income taxes | $ | — | $ | — | ||||
2021 | 2020 | |||||||
Deferred tax assets | ||||||||
Net operating loss carryforwards – domestic | $ | 12,610 | $ | 9,895 | ||||
Net operating loss carryforwards – foreign | 1,220 | 1,252 | ||||||
Intangible assets | 12,426 | 13,576 | ||||||
Accruals | 1,398 | 659 | ||||||
Interest limitation | 324 | — | ||||||
Other | 60 | 118 | ||||||
Total deferred tax assets | $ | 28,038 | $ | (25,500 | ) | |||
Valuation allowance | (28,027 | ) | (25,401 | ) | ||||
Total deferred tax assets, net of allowance | $ | 11 | $ | 99 | ||||
Deferred tax liabilities | ||||||||
Other | $ | (11 | ) | $ | (99 | ) | ||
Total deferred tax liabilities | $ | (11 | ) | $ | (99 | ) | ||
Total deferred tax assets, net | $ | — | $ | — | ||||
2021 | 2020 | |||||||||||||||||||||||
Par Value | Voting Rights | Authorized | Outstanding | Authorized | Outstanding | |||||||||||||||||||
Class 1 common stock | $ | 0.0001 | 10 votes per share | 74,500 | 28,564 | 74,500 | 28,564 | |||||||||||||||||
Class 2 common stock | $ | 0.0001 | 1 vote per share | 119,000 | 41,892 | 119,000 | 41,892 | |||||||||||||||||
Class 3 common stock | $ | 0.0001 | no voting rights | 17,751 | 5,956 | 16,151 | 4,939 | |||||||||||||||||
211,251 | 76,412 | 209,651 | 75,395 | |||||||||||||||||||||
Shares | ||||
Stock options outstanding | 11,729 | |||
Stock options available for | 67 | |||
Class 1 common stock | 28,564 | |||
Class 3 common stock | 5,956 | |||
46,316 | ||||
An aggregate of 3,000 shares of stock, subsequently increased to 17,751 shares of stock, were reserved for issuance pursuant to awards granted under the 2018 Plan. |
2021 | 2020 | |||||||
Risk-free interest rate | 1.15 | % | 0.63 | % | ||||
Expected term in years | 5.9 | 5.5 | ||||||
Expected volatility | 61 | % | 58 | % | ||||
Expected dividend yield | 0 | % | 0 | % |
Number of Shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Term (in years) | |||||||||||||
Outstanding at December 31, 2020 | 5,765 | 0.33 | ||||||||||||||
Granted | 7,818 | 0.70 | ||||||||||||||
Exercised | (1,017 | ) | 0.35 | |||||||||||||
Forfeited or expired | (837 | ) | 0.37 | |||||||||||||
Outstanding at December 31, 2021 | 11,729 | $ | 0.58 | $ | 24,018 | 8.85 | ||||||||||
Vested and exercisable | 4,203 | $ | 0.33 | $ | 10,019 | 8.23 |
Description | Level | December 31, 2021 | December 31, 2020 | |||||||||
Assets: | ||||||||||||
Cash and marketable securities held in Trust Account | 1 | $ | 90,849,312 | $ | 130,681,047 | |||||||
Liabilities: | ||||||||||||
Warrant liability – Private Warrants | 3 | 6,982,603 | 3,950,311 | |||||||||
Forward share purchase agreements | 3 | 2,174,989 | 0 |
Number of Shares | Weighted Average Exercise Price | Other Liabilities | ||||||||||
Unvested at December 31, 2019 | 1,015 | $ | 0.65 | $ | 663 | |||||||
Vested | (516 | ) | 0.54 | (279 | ) | |||||||
Forfeited or expired | (464 | ) | $ | 0.77 | $ | (357 | ) | |||||
Unvested at December 31, 2020 | 35 | $ | 0.77 | $ | 27 | |||||||
Vested | (35 | ) | $ | 0.77 | $ | (27 | ) | |||||
Unvested at December 31, 2021 | — | $ | — | $ | — | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 9.99 | $ | 10.20 | ||||
Volatility | 24.9 | % | 17.2 | % | ||||
Term | 5.00 | 5.00 | ||||||
Risk-free rate | 1.19 | % | 0.29 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Net loss (numerator) | $ | (12,024 | ) | $ | (9,964 | ) | ||
Weighted average shares outstanding (denominator) | 75,791 | 76,431 | ||||||
Basic and diluted net loss per share | $ | (0.16 | ) | $ | (0.13 | ) | ||
Private Placement Warrants | ||||
Fair value as of December 31, 2020 | $ | 3,950,311 | ||
Change in fair value | 3,032,292 | |||
Fair value as of December 31, 2021 | $ | 6,982,603 | ||
Year Ended December 31, 2021 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss (numerator) | $ | (4,532 | ) | $ | (6,646 | ) | $ | (846 | ) | |||
Weighted average shares outstanding (denominator) | 28,564 | 41,892 | 5,335 | |||||||||
Basic and diluted net loss per share | $ | (0.16 | ) | $ | (0.16 | ) | $ | (0.16 | ) | |||
Year Ended December 31, 2020 | ||||||||||||
Class 1 | Class 2 | Class 3 | ||||||||||
Net loss (numerator) | $ | (3,725 | ) | $ | (5,460 | ) | $ | (779 | ) | |||
Weighted average shares outstanding (denominator) | 28,570 | 41,886 | 5,975 | |||||||||
Basic and diluted net loss per share | $ | (0.13 | ) | $ | (0.13 | ) | $ | (0.13 | ) | |||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Shares subject to outstanding common stock options | 11,729 | 6 | ||||||
Shares subject to convertible promissory notes | 39,433 | — | ||||||
Series A preferred stock | 18,702 | 18,702 | ||||||
69,864 | 18,708 | |||||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue: | ||||||||
Retail | $ | 33,628 | 29,591 | |||||
Brands | 9,408 | 6,801 | ||||||
Total revenue | $ | 43,036 | $ | 36,392 | ||||
Gross profit: | ||||||||
Retail | 30,435 | 26,290 | ||||||
Brands | 7,618 | 5,140 | ||||||
Total gross profit | $ | 38,053 | $ | 31,430 | ||||
FPA | ||||
Fair value as of December 22, 2021 | $ | 2,174,989 | ||
Change in fair value | 0 | |||
Fair value as of December 31, 2021 | $ | 2,174,989 | ||
December 31, 2021 | ||||
Exercise price | $ $ | 10.01 and 10.16 | | |
Stock price | $ | 9.99 | ||
Volatility | 24.9 | % | ||
Term | 0.25 | |||
Risk-free rate | 0.06 | % | ||
Dividend yield | 0.0 | % |
Amount paid or to be paid | Amount paid or to be paid | |||||||
SEC registration fee | $ | 26,838.31 | $ | 1,287.23 | ||||
Printing and engraving expenses | $ | * | $ | * | ||||
Legal fees and expenses | $ | * | $ | * | ||||
Accounting fees and expenses | $ | * | $ | * | ||||
Miscellaneous | $ | * | $ | * | ||||
Total | $ | 26,838.31 | $ | 1,287.23 | ||||
* | These fees are calculated based on the securities offered and the number of issuances and accordingly cannot be defined at this time. |
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
(i) | To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
(ii) | To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in this Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement; and |
(iii) | To include any material information with respect to the plan of distribution not previously disclosed in this Registration Statement or any material change to such information in this Registration Statement; |
Provided however that paragraphs (i), (ii) and (iii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement. |
(2) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post- effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time will be deemed to be the initial bona fide offering thereof. |
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(4) | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser: |
(i) | each prospectus filed pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement and |
(ii) | Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or |
(5) | That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: |
(i) | Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424; |
(ii) | Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant; |
(iii) | The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and |
(iv) | Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser. |
(6) | For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective. |
Filed Number | Description | Form | File No. | Exhibit | Filing Date | Herewith | ||||||
10.23 | Amendment to Forward Share Purchase Agreement, dated May 3, 2022 by and among the Company, Meteora Special Opportunity Fund I, LP, and Meteora Capital Partners, LP | 8-K | 001-39119 | 10.23 | May 4, 2022 | |||||||
10.24 | Amendment to Forward Share Purchase Agreement, dated May 3, 2022 by and among the Company and Linden Advisors LP | 8-K | 001-39119 | 10.24 | May 4, 2022 | |||||||
10.25 | Amendment to Forward Share Purchase Agreement, dated May 3, 2022 by and among the Company and Castle Creek Arbitrage, LLC | 8-K | 001-39119 | 10.25 | May 4, 2022 | |||||||
21.1 | Subsidiaries of Registrant | 8-K | 001-39119 | 21.1 | February 10, 2022 | |||||||
23.1 | Consent of Weil, Gotshal & Manges LLP (included in Exhibit 5.1) | — | — | — | — | X | ||||||
23.2 | Consent of Marcum LLP, Independent Registered Public Accounting Firm for the Registrant. | — | — | — | — | X | ||||||
24.1 | Power of Attorney (included in the signature page to this Registration Statement) | — | — | �� | — | — | X | |||||
107 | Filing Fee Table | — | — | — | — | X | ||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
+ | Schedules and exhibits to this Exhibit omitted pursuant to Regulation S-K Item 601(b)(2), the Registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request. |
# | Indicates management contract or compensatory plan or arrangement. |
LEAFLY HOLDINGS, INC. | ||
By: | /s/ Yoko Miyashita | |
Name: | ||
Title: |
Signature | Position | Date | ||
/s/ Yoko Miyashita Yoko Miyashita | Chief Executive Officer and Director (Principal Executive Officer) | |||
/s/ Suresh Krishnaswamy Suresh Krishnaswamy | Chief Financial Officer (Principal Accounting Officer) | |||
/s/ Peter Lee Peter Lee | Director | |||
/s/ Michael Blue Michael Blue | Director | |||
/s/ Cassandra Chandler Cassandra Chandler | Director | |||
/s/ Blaise Judja-Sato Blaise Judja-Sato | Director | |||
/s/ Alan Pickerill Alan Pickerill | Director |