Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2021 | |
Cover [Abstract] | |
Document Type | S-1 |
Amendment Flag | false |
Entity Registrant Name | WM TECHNOLOGY, INC. |
Entity Central Index Key | 0001779474 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
CONSOLIDATED BALANCE SHEETS (FY
CONSOLIDATED BALANCE SHEETS (FY) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash | $ 19,918,914 | $ 4,967,954 |
Accounts receivable | 9,428,166 | 3,929,321 |
Prepaid expenses and other current assets | 4,819,968 | 1,783,783 |
Total current assets | 34,167,048 | 10,681,058 |
Property and Equipment, net | 7,387,420 | 9,155,525 |
Goodwill | 3,961,122 | 3,961,122 |
Intangible Assets, net | 4,504,408 | 5,402,956 |
Other Assets | 3,874,155 | 4,553,009 |
Total assets | 53,894,153 | 33,753,670 |
Current Liabilities | ||
Accounts payable and accrued expenses | 12,651,130 | 14,886,301 |
Deferred revenue | 5,264,373 | 4,328,635 |
Deferred rent | 5,128,755 | 1,435,691 |
Notes payable to members, current portion | 205,324 | 0 |
Total current liabilities | 23,249,582 | 20,650,627 |
Other long-term liabilities | ||
Notes payable to members, non-current portion | 0 | 205,324 |
Other long-term liabilities | 1,373,836 | 98,964 |
Total liabilities | 24,623,418 | 20,954,915 |
Commitments and contingencies (Note 10) | ||
Members' equity | ||
Retained earnings/accumulated deficit | 9,861,836 | (7,616,910) |
Total members' equity | 29,270,735 | 12,798,755 |
Total liabilities and members' equity | 53,894,153 | 33,753,670 |
Class A Common Stock | ||
Members' equity | ||
Common Units | 0 | |
Class A-1 Units | ||
Members' equity | ||
Common Units | 2,543,998 | 3,306,922 |
Class A-2 Units | ||
Members' equity | ||
Common Units | 16,864,901 | 17,108,743 |
Class A-3 Units/B Units | ||
Members' equity | ||
Common Units | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (FY) (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Class A-1 Units | ||
Members' equity | ||
Common units, par value (in dollars per share) | $ 0 | $ 0 |
Common units, shares authorized (in shares) | 821,769 | 821,769 |
Common units, shares issued (in shares) | 821,769 | 821,769 |
Common units, shares outstanding (in shares) | 821,769 | 821,769 |
Class A-2 Units | ||
Members' equity | ||
Common units, par value (in dollars per share) | $ 0 | $ 0 |
Common units, shares authorized (in shares) | 34,264 | 34,264 |
Common units, shares issued (in shares) | 24,058 | 24,058 |
Common units, shares outstanding (in shares) | 24,058 | 24,058 |
Class A-3 Units | ||
Members' equity | ||
Common units, par value (in dollars per share) | $ 0 | $ 0 |
Common units, shares authorized (in shares) | 274,822 | 274,667 |
Common units, shares issued (in shares) | 53,333 | 53,333 |
Common units, shares outstanding (in shares) | 53,333 | 53,333 |
Class B Units | ||
Members' equity | ||
Common units, par value (in dollars per share) | $ 0 | $ 0 |
Common units, shares authorized (in shares) | 274,822 | 274,667 |
Common units, shares issued (in shares) | 221,483 | 210,744 |
Common units, shares outstanding (in shares) | 221,483 | 210,744 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (FY) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
REVENUES, net | $ 161,790,762 | $ 144,231,479 | $ 101,402,007 |
OPERATING EXPENSES | |||
Cost of revenues | 7,629,965 | 7,073,728 | 6,304,059 |
Sales and marketing | 30,716,015 | 39,745,946 | 17,798,973 |
Product development | 27,142,129 | 29,496,687 | 20,033,481 |
General and administrative | 51,127,116 | 56,465,609 | 38,934,680 |
Depreciation and amortization | 3,977,805 | 5,162,595 | 2,148,628 |
Total operating expenses | 120,593,030 | 137,944,565 | 85,219,821 |
INCOME FROM OPERATIONS | 41,197,732 | 6,286,914 | 16,182,186 |
OTHER EXPENSE | |||
Interest expense | (2,116) | (124,220) | (621,462) |
Other expense, net | (2,365,623) | (5,217,334) | (1,206,475) |
Total other expense | (2,367,739) | (5,341,554) | (1,827,937) |
Income before income taxes | 38,829,993 | 945,360 | 14,354,249 |
LOSS FROM DISCONTINUED OPERATIONS | 0 | 0 | (1,674,738) |
INCOME BEFORE PROVISION FOR INCOME TAXES | 38,829,993 | 945,360 | 12,679,511 |
Provision for income taxes | 0 | 1,321,045 | 0 |
NET INCOME (LOSS) | $ 38,829,993 | $ (375,685) | $ 12,679,511 |
EARNINGS (LOSS) PER UNIT | |||
Basic earnings (loss) per Class A-1, A-2 and A-3 units from continuing operations (in dollars per share) | $ 43.18 | $ (0.42) | $ 16.95 |
Diluted earnings (loss) per Class A-1, A-2 and A-3 units from continuing operations (in dollars per share) | 43.18 | (0.42) | 16.95 |
Basic loss per Class A-1, A-2 and A-3 units from discontinued operations (in dollars per share) | 0 | 0 | (1.98) |
Diluted loss per Class A-1, A-2 and A-3 units from discontinued operations (in dollars per share) | 0 | 0 | (1.98) |
Basic earnings (loss) per Class A-1, A-2 and A-3 units (in dollars per share) | 43.18 | (0.42) | 14.97 |
Diluted earnings (loss) per Class A-1, A-2 and A-3 units (in dollars per share) | $ 43.18 | $ (0.42) | $ 14.97 |
Basic weighted-average number of units outstanding (in shares) | 899,160 | 899,160 | 847,024 |
Diluted weighted-average number of units outstanding(in shares) | 899,160 | 899,160 | 847,024 |
CONSOLIDATED STATEMENTS OF MEMB
CONSOLIDATED STATEMENTS OF MEMBERS' EQUITY (FY) - USD ($) | Common StockClass A-1 Units | Common StockClass A-2 Units | Common StockClass A-3 Units/B Units | Retained Earnings | Total |
Beginning balance at Dec. 31, 2017 | $ 4,546,847 | $ 0 | $ 0 | $ 8,891,183 | $ 13,438,030 |
Members' Equity [Roll Forward] | |||||
Sale of Class A Units | 0 | 17,553,601 | 0 | 0 | 17,553,601 |
Distributions | (524,894) | (66,840) | 0 | (10,832,926) | (11,424,660) |
Repurchase of Class B Units | 0 | 0 | 0 | (1,694,407) | (1,694,407) |
Deemed distribution on divestiture of controlled entities | 0 | 0 | 0 | (428,417) | (428,417) |
Net income | 0 | 0 | 0 | 12,679,511 | 12,679,511 |
Ending balance at Dec. 31, 2018 | 4,021,953 | 17,486,761 | 0 | 8,614,944 | 30,123,658 |
Members' Equity [Roll Forward] | |||||
Distributions | (715,031) | (378,018) | 0 | (14,289,441) | (15,382,490) |
Repurchase of Class B Units | 0 | 0 | 0 | (1,566,728) | (1,566,728) |
Deemed distribution on divestiture of controlled entities | 0 | ||||
Net income | 0 | 0 | 0 | (375,685) | (375,685) |
Ending balance at Dec. 31, 2019 | 3,306,922 | 17,108,743 | 0 | (7,616,910) | 12,798,755 |
Members' Equity [Roll Forward] | |||||
Distributions | (3,123,000) | ||||
Repurchase of Class B Units | (90,000) | ||||
Net income | 3,809,000 | ||||
Ending balance at Mar. 31, 2020 | 13,395,000 | ||||
Beginning balance at Dec. 31, 2019 | 3,306,922 | 17,108,743 | 0 | (7,616,910) | 12,798,755 |
Members' Equity [Roll Forward] | |||||
Net income | 28,732,000 | ||||
Ending balance at Sep. 30, 2020 | 32,032,000 | ||||
Beginning balance at Dec. 31, 2019 | 3,306,922 | 17,108,743 | 0 | (7,616,910) | 12,798,755 |
Members' Equity [Roll Forward] | |||||
Distributions | (762,924) | (243,842) | (20,944,766) | (21,951,532) | |
Repurchase of Class B Units | (406,481) | (406,481) | |||
Deemed distribution on divestiture of controlled entities | 0 | ||||
Net income | 38,829,993 | 38,829,993 | |||
Ending balance at Dec. 31, 2020 | 2,543,998 | 16,864,901 | 0 | 9,861,836 | 29,270,735 |
Beginning balance at Mar. 31, 2020 | 13,395,000 | ||||
Members' Equity [Roll Forward] | |||||
Distributions | (2,744,000) | ||||
Repurchase of Class B Units | (105,000) | ||||
Net income | 9,393,000 | ||||
Ending balance at Jun. 30, 2020 | 19,939,000 | ||||
Members' Equity [Roll Forward] | |||||
Distributions | (3,331,000) | ||||
Repurchase of Class B Units | (106,000) | ||||
Net income | 15,530,000 | ||||
Ending balance at Sep. 30, 2020 | 32,032,000 | ||||
Beginning balance at Dec. 31, 2020 | 2,543,998 | 16,864,901 | 0 | 9,861,836 | 29,270,735 |
Members' Equity [Roll Forward] | |||||
Distributions | (10,513,000) | ||||
Repurchase of Class B Units | (106,000) | ||||
Net income | 7,731,000 | ||||
Ending balance at Mar. 31, 2021 | 26,383,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 2,543,998 | $ 16,864,901 | $ 0 | $ 9,861,836 | 29,270,735 |
Members' Equity [Roll Forward] | |||||
Net income | 25,098,000 | ||||
Ending balance at Sep. 30, 2021 | 0 | ||||
Beginning balance at Mar. 31, 2021 | 26,383,000 | ||||
Members' Equity [Roll Forward] | |||||
Distributions | (7,597,000) | ||||
Repurchase of Class B Units | (5,459,000) | ||||
Ending balance at Jun. 30, 2021 | 0 | ||||
Members' Equity [Roll Forward] | |||||
Net income | 20,835,000 | ||||
Ending balance at Sep. 30, 2021 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (FY) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 38,829,993 | $ (375,685) | $ 12,679,511 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 3,977,805 | 5,162,595 | 2,148,628 |
Accretion of debt discounts | 0 | 0 | 59,079 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (5,498,845) | (2,572,107) | (432,095) |
Prepaid expenses and other current assets | (3,036,185) | (610,758) | 871,245 |
Other assets | 678,854 | (3,344,195) | 65,948 |
Accounts payable and accrued expenses | (960,299) | 7,373,723 | 1,651,975 |
Deferred rent | 3,693,064 | 496,065 | 6,269 |
Deferred revenue | 935,738 | 165,488 | 721,378 |
Assets and liabilities held for sale | 0 | 0 | (82,507) |
Net cash provided by operating activities | 38,620,125 | 6,295,126 | 17,689,431 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchases of property and equipment | (1,311,152) | (5,129,470) | (2,124,408) |
Net cash used in investing activities | (1,311,152) | (5,129,470) | (2,124,408) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Net proceeds (repayments) from secured line of credit | 0 | (5,019,814) | 1,748,038 |
Sale of Class A Units | 0 | 0 | 17,553,601 |
Distributions to members | (21,951,532) | (15,382,490) | (11,424,660) |
Repurchase of Class B Units | (406,481) | (1,566,728) | (1,694,407) |
Principal payments on notes payable to members | 0 | 0 | (2,243,611) |
Principal payments on notes payable | 0 | 0 | (695,000) |
Net cash provided by (used in) financing activities | (22,358,013) | (21,969,032) | 3,243,961 |
Net increase (decrease) in cash | 14,950,960 | (20,803,376) | 18,808,984 |
Cash - beginning of year | 4,967,954 | 25,771,330 | 6,962,346 |
Cash - end of year | 19,918,914 | 4,967,954 | 25,771,330 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest | 2,115 | 157,407 | 579,793 |
Cash paid for income taxes | 1,335,998 | 117,848 | 0 |
Deemed distribution on divestiture of controlled entities | $ 0 | $ 0 | $ 428,417 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Q3) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 77,935,000 | $ 19,918,914 |
Accounts receivable, net | 12,784,000 | 9,428,166 |
Prepaid expenses and other current assets | 15,338,000 | 4,819,968 |
Total current assets | 106,057,000 | 34,167,048 |
Property and equipment, net | 10,031,000 | 7,387,420 |
Goodwill | 45,658,000 | 3,961,122 |
Intangible assets, net | 8,446,000 | 4,504,408 |
Right-of-use assets | 37,673,000 | 43,300,000 |
Deferred tax assets | 147,972,000 | 0 |
Other assets | 6,787,000 | 3,874,155 |
Total assets | 362,624,000 | 53,894,153 |
Current liabilities | ||
Accounts payable and accrued expenses | 23,881,000 | 12,651,130 |
Deferred revenue | 7,759,000 | 5,264,373 |
Deferred rent | 0 | 5,128,755 |
Operating lease liabilities, current | 5,256,000 | |
Notes payable to members | 0 | 205,324 |
Other current liabilities | 1,000,000 | 0 |
Total current liabilities | 37,896,000 | 23,249,582 |
Operating lease liabilities, non-current | 40,813,000 | |
Tax receivable agreement liability | 126,150,000 | 0 |
Warrant liability | 110,350,000 | 0 |
Other long-term liabilities | 0 | 1,373,836 |
Total liabilities | 315,209,000 | 24,623,418 |
Commitments and contingencies (Note 4) | ||
Stockholders' equity/Members' equity | ||
Preferred Stock - $0.0001 par value; 75,000,000 shares authorized; no shares issued and outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 |
Additional paid-in capital | (3,592,000) | 0 |
Retained earnings | 26,084,000 | 9,861,836 |
Total WM Technology, Inc. stockholders' equity | 22,506,000 | 0 |
Noncontrolling interests | 24,909,000 | 0 |
Members' equity | 0 | 29,270,735 |
Total equity | 47,415,000 | |
Total liabilities and members' equity | 362,624,000 | 53,894,153 |
Class A Common Stock | ||
Stockholders' equity/Members' equity | ||
Common Stock | 7,000 | 0 |
Class V Common Stock | ||
Stockholders' equity/Members' equity | ||
Common Stock | $ 7,000 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Q3) (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.0001 | |
Preferred stock, shares authorized (in shares) | 75,000,000 | |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 1,500,000,000 | |
Common stock, shares issued (in shares) | 65,677,361 | 0 |
Common stock, shares outstanding (in shares) | 65,677,361 | 0 |
Class V Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, shares authorized (in shares) | 500,000,000 | |
Common stock, shares issued (in shares) | 65,502,347 | 0 |
Common stock, shares outstanding (in shares) | 65,502,347 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Q3) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenues | $ 50,884,000 | $ 46,505,000 | $ 138,969,000 | $ 117,470,000 |
Operating expenses | ||||
Cost of revenues | 2,035,000 | 2,109,000 | 5,800,000 | 5,572,000 |
Sales and marketing | 12,806,000 | 7,384,000 | 37,194,000 | 21,437,000 |
Product development | 7,782,000 | 6,923,000 | 25,921,000 | 20,325,000 |
General and administrative | 23,220,000 | 12,906,000 | 70,356,000 | 37,147,000 |
Depreciation and amortization | 980,000 | 991,000 | 2,970,000 | 2,980,000 |
Total operating expenses | 46,823,000 | 30,313,000 | 142,241,000 | 87,461,000 |
INCOME FROM OPERATIONS | 4,061,000 | 16,192,000 | (3,272,000) | 30,009,000 |
Other income (expenses) | ||||
Change in fair value of warrant liability | 45,837,000 | 0 | 83,628,000 | 0 |
Other expense, net | (300,000) | (662,000) | (6,341,000) | (1,277,000) |
Income before income taxes | 49,598,000 | 15,530,000 | 74,015,000 | 28,732,000 |
Provision for income taxes | 393,000 | 0 | 242,000 | 0 |
Net income | 49,205,000 | 15,530,000 | 73,773,000 | 28,732,000 |
Net income attributable to noncontrolling interests | 28,370,000 | 0 | 48,675,000 | 0 |
NET INCOME (LOSS) | $ 20,835,000 | $ 15,530,000 | $ 25,098,000 | $ 28,732,000 |
Class A Common Stock | ||||
Other income (expenses) | ||||
Basic income per share - Class A (in dollars per share) | $ 0.32 | $ 0.39 | ||
Diluted income (loss) per share - Class A (in dollars per share) | $ 0.02 | $ (0.15) | ||
Weighted average basic shares outstanding - Class A (in shares) | 64,216,732 | 64,149,699 | ||
Weighted average diluted shares outstanding - Class A (in shares) | 68,304,372 | 69,950,141 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Q3) - USD ($) | Total | Class A | Class V | Total WM Technology, Inc. Stockholders' Equity | Common StockClass A | Common StockClass V | Additional Paid-in Capital | Retained Earnings | Non-controlling Interests | Members' Equity |
Beginning balance at Dec. 31, 2017 | $ 13,438,030 | $ 8,891,183 | ||||||||
Members' Equity [Roll Forward] | ||||||||||
Distributions to members | (11,424,660) | (10,832,926) | ||||||||
Repurchase of Class B Units | (1,694,407) | (1,694,407) | ||||||||
Net income | 12,679,511 | 12,679,511 | ||||||||
Ending balance at Dec. 31, 2018 | 30,123,658 | 8,614,944 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 12,679,511 | |||||||||
Distributions to members | (15,382,490) | (14,289,441) | ||||||||
Repurchase of Class B Units | (1,566,728) | (1,566,728) | ||||||||
Net income | (375,685) | (375,685) | ||||||||
Ending balance at Dec. 31, 2019 | 12,798,755 | (7,616,910) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | (375,685) | |||||||||
Distributions to members | (3,123,000) | $ (3,123,000) | ||||||||
Repurchase of Class B Units | (90,000) | (90,000) | ||||||||
Net income | 3,809,000 | 3,809,000 | ||||||||
Ending balance at Mar. 31, 2020 | 13,395,000 | |||||||||
Beginning balance at Dec. 31, 2019 | 12,798,755 | (7,616,910) | ||||||||
Members' Equity [Roll Forward] | ||||||||||
Net income | 28,732,000 | |||||||||
Ending balance at Sep. 30, 2020 | 32,032,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock for acquisitions (Note 7) | 0 | |||||||||
Net income | 28,732,000 | |||||||||
Beginning balance at Dec. 31, 2019 | 12,798,755 | (7,616,910) | ||||||||
Members' Equity [Roll Forward] | ||||||||||
Distributions to members | (21,951,532) | (20,944,766) | ||||||||
Repurchase of Class B Units | (406,481) | (406,481) | ||||||||
Net income | 38,829,993 | 38,829,993 | ||||||||
Ending balance at Dec. 31, 2020 | 29,270,735 | 9,861,836 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 38,829,993 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 0 | 0 | ||||||||
Beginning balance at Mar. 31, 2020 | 13,395,000 | |||||||||
Members' Equity [Roll Forward] | ||||||||||
Distributions to members | (2,744,000) | (2,744,000) | ||||||||
Repurchase of Class B Units | (105,000) | (105,000) | ||||||||
Net income | 9,393,000 | 9,393,000 | ||||||||
Ending balance at Jun. 30, 2020 | 19,939,000 | |||||||||
Members' Equity [Roll Forward] | ||||||||||
Distributions to members | (3,331,000) | (3,331,000) | ||||||||
Repurchase of Class B Units | (106,000) | (106,000) | ||||||||
Net income | 15,530,000 | 15,530,000 | ||||||||
Ending balance at Sep. 30, 2020 | 32,032,000 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 15,530,000 | |||||||||
Beginning balance at Dec. 31, 2020 | 29,270,735 | 9,861,836 | ||||||||
Members' Equity [Roll Forward] | ||||||||||
Distributions to members | (10,513,000) | (10,513,000) | ||||||||
Repurchase of Class B Units | (106,000) | (106,000) | ||||||||
Net income | 7,731,000 | 7,731,000 | ||||||||
Ending balance at Mar. 31, 2021 | 26,383,000 | |||||||||
Balance (in shares) at Mar. 31, 2021 | 0 | 0 | ||||||||
Balance at Mar. 31, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0 | ||||
Beginning balance at Dec. 31, 2020 | 29,270,735 | 9,861,836 | ||||||||
Members' Equity [Roll Forward] | ||||||||||
Net income | 25,098,000 | |||||||||
Ending balance at Sep. 30, 2021 | 0 | |||||||||
Balance (in shares) at Dec. 31, 2020 | 0 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Issuance of common stock for acquisitions (Note 7) | 29,312,000 | |||||||||
Net income | 73,773,000 | |||||||||
Balance (in shares) at Sep. 30, 2021 | 65,677,361 | 65,502,347 | ||||||||
Balance at Sep. 30, 2021 | 47,415,000 | 22,506,000 | $ 7,000 | $ 7,000 | (3,592,000) | 26,084,000 | 24,909,000 | |||
Beginning balance at Mar. 31, 2021 | 26,383,000 | |||||||||
Members' Equity [Roll Forward] | ||||||||||
Distributions to members | (7,597,000) | (7,597,000) | ||||||||
Repurchase of Class B Units | (5,459,000) | (5,459,000) | ||||||||
Ending balance at Jun. 30, 2021 | 0 | |||||||||
Balance (in shares) at Mar. 31, 2021 | 0 | 0 | ||||||||
Balance at Mar. 31, 2021 | 0 | $ 0 | $ 0 | 0 | 0 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 19,433,000 | 19,433,000 | ||||||||
Proceeds and shares issued in the Business Combination (Note 6) (in shares) | 63,738,563 | 65,502,347 | ||||||||
Proceeds and shares issued in the Business Combination (Note 6) | (85,312,000) | (19,213,000) | $ 6,000 | $ 7,000 | (20,212,000) | 986,000 | (45,425,000) | (20,674,000) | ||
Net income | 16,837,000 | 4,263,000 | 4,263,000 | 5,227,000 | $ 7,347,000 | |||||
Balance (in shares) at Jun. 30, 2021 | 63,738,563 | 65,502,347 | ||||||||
Balance at Jun. 30, 2021 | (35,715,000) | (14,950,000) | $ 6,000 | $ 7,000 | (20,212,000) | 5,249,000 | (20,765,000) | |||
Members' Equity [Roll Forward] | ||||||||||
Net income | 58,700,000 | |||||||||
Ending balance at Sep. 30, 2021 | $ 0 | |||||||||
Balance (in shares) at Jun. 17, 2021 | 129,240,910 | |||||||||
Balance (in shares) at Sep. 30, 2021 | 65,677,361 | 65,502,347 | ||||||||
Balance at Sep. 30, 2021 | $ 47,415,000 | 22,506,000 | $ 7,000 | $ 7,000 | (3,592,000) | 26,084,000 | 24,909,000 | |||
Beginning balance at Jun. 30, 2021 | 0 | |||||||||
Members' Equity [Roll Forward] | ||||||||||
Net income | 20,835,000 | |||||||||
Ending balance at Sep. 30, 2021 | 0 | |||||||||
Balance (in shares) at Jun. 30, 2021 | 63,738,563 | 65,502,347 | ||||||||
Balance at Jun. 30, 2021 | (35,715,000) | (14,950,000) | $ 6,000 | $ 7,000 | (20,212,000) | 5,249,000 | (20,765,000) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock-based compensation | 4,887,000 | 4,173,000 | 4,173,000 | 714,000 | ||||||
Transaction costs related to the Business Combination (Note 6) | (274,000) | (274,000) | (274,000) | |||||||
Issuance of common stock for acquisitions (Note 7) (in shares) | 1,938,798 | |||||||||
Issuance of common stock for acquisitions (Note 7) | 29,312,000 | 12,722,000 | $ 1,000 | 12,721,000 | 16,590,000 | |||||
Net income | 49,205,000 | 20,835,000 | 20,835,000 | 28,370,000 | ||||||
Balance (in shares) at Sep. 30, 2021 | 65,677,361 | 65,502,347 | ||||||||
Balance at Sep. 30, 2021 | $ 47,415,000 | $ 22,506,000 | $ 7,000 | $ 7,000 | $ (3,592,000) | $ 26,084,000 | $ 24,909,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Q3) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities | ||
Net income | $ 73,773,000 | $ 28,732,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,970,000 | 2,980,000 |
Change in fair value of warrant liability | (83,628,000) | 0 |
Impairment loss on right-of-use asset | 2,372,000 | 0 |
Stock-based compensation | 23,625,000 | 0 |
Deferred income taxes | 1,000 | 0 |
Provision for doubtful accounts | 3,015,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,371,000) | (4,300,000) |
Prepaid expenses and other current assets | 6,504,000 | (450,000) |
Other assets | 87,000 | 522,000 |
Accounts payable and accrued expenses | 330,000 | (1,098,000) |
Deferred revenue | 2,495,000 | 3,180,000 |
Net cash provided by operating activities | 25,173,000 | 29,566,000 |
Cash flows from investing activities | ||
Purchases of property and equipment | (4,246,000) | (903,000) |
Cash paid for acquisitions | (16,000,000) | 0 |
Cash paid for other investments | (3,000,000) | 0 |
Net cash used in investing activities | (23,246,000) | (903,000) |
Cash flows from financing activities | ||
Proceeds from the Business Combination | 79,969,000 | 0 |
Payment of note payable | (205,000) | 0 |
Distributions to members | (18,110,000) | (9,198,000) |
Repurchase of Class B Units | (5,565,000) | (301,000) |
Net cash provided by (used in) financing activities | 56,089,000 | (9,499,000) |
Net increase (decrease) in cash | 58,016,000 | 19,164,000 |
Cash - beginning of year | 19,918,914 | 4,967,954 |
Cash - end of year | 77,935,000 | 24,132,000 |
Supplemental disclosures of noncash activities | ||
Warranty liability assumed from the Business Combination | 193,978,000 | 0 |
Tax receivable agreement liability recognized in connection with the Business Combination | 126,150,000 | 0 |
Deferred tax assets recognized in connection with the Business Combination | 147,973,000 | 0 |
Other assets assumed from the Business Combination | 1,053,000 | 0 |
Issuance of equity for acquisitions | 29,312,000 | 0 |
Holdback liability recognized in connection with acquisition | 1,000,000 | 0 |
Stock-based compensation capitalized for software development | $ 695,000 | $ 0 |
Business and Organization (FY)
Business and Organization (FY) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Business and organization WM Holding Company, LLC, a Delaware limited liability company, and its subsidiaries (the “Company”), is a technology and software infrastructure provider to retailers and brands in the U.S. state-legal and Canadian cannabis markets. The Company also provides information on the cannabis plant and the industry and advocates for legalization. The Weedmaps listings marketplace provides consumers with information regarding cannabis retailers and brands, as well as the strain, pricing, and other information regarding locally available cannabis products, through the Company’s website and mobile apps, permitting product discovery and reservation of products for pickup by consumers or delivery to consumers by participating retailers. The Company sells its offerings in the United States and Canada, and the Company has a limited number of non-monetized listings in several international countries including Austria, Germany, the Netherlands, Spain, and Switzerland. Through December 31, 2020, the Company offered standard listing subscription clients access to a listing page on weedmaps.com in addition to free access to its SaaS solutions, including WM Orders, WM Dispatch, WM Exchange, WM Retail and WM Store, along with its API integrations with third-party point-of-sale (“POS”) systems. For access to the orders functionality, beginning in September 2019, standard listing clients were also then required to pay a fixed services fee per delivery order submitted which we imposed regardless of whether the proposed order was canceled or completed. As of January 1, 2021, the Company migrated all standard listing subscription clients to our new WM Business subscription package. Under this new subscription package, all retailers continue to receive access to a standard listing page and SaaS solutions. In addition, the Company began including access to WM Dashboard and eliminated the technology services fee on delivery orders as part of the transition to the new WM Business subscription package. The Company operates in the United States, Canada, and other foreign jurisdictions where medical and/or adult use cannabis is legal under state or applicable national law. The Company is headquartered in Irvine, California. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (FY) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. Management believes that these accounting policies conform to GAAP in all material respects, and have been consistently applied in preparing the accompanying condensed consolidated financial statements. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-1 of Regulation S-X. Accordingly, certain information and footnotes required by GAAP in annual financial statements have been omitted or condensed and these interim financial statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in the Company’s Registration Statement on Form S-1 filed with the SEC on July 8, 2021. The condensed financial statements of the Company include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair statement of the Company’s financial position as of September 30, 2021, and results of its operations and its cash flows for the interim periods presented. The results of operations for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the entire year. There have been no significant changes in the Company’s accounting policies from those described in the Company’s audited consolidated financial statements and the related notes to those statements, other than the adoption of the lease accounting guidance. Pursuant to the Merger Agreement, the Business Combination was accounted for as a reverse recapitalization in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, Silver Spike was treated as the acquired company and Legacy WMH was treated as the acquirer for financial statement reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Legacy WMH issuing stock for the net assets of Silver Spike, accompanied by a recapitalization. Legacy WMH was determined to be the accounting acquirer based on evaluation of the following facts and circumstances: ● Legacy WMH Class A Unit holders, through their ownership of the Class V Common Stock, have the greatest voting interest in the Company with over 50% of the voting interest; ● Legacy WMH selected the majority of the new board of directors of the Company; ● Legacy WMH senior management is the senior management of the Company; and ● Legacy WMH is the larger entity based on historical operating activity and has the larger employee base. Thus, the financial statements included in this quarterly report reflect (i) the historical operating results of Legacy WMH prior to the Business Combination; (ii) the combined results of the WMH LLC and Silver Spike following the Business Combination; and (iii) the acquired assets and liabilities of Silver Spike stated at historical cost, with no goodwill or other intangible assets recorded. Principles of Consolidation The condensed consolidated financial statements include the accounts of WM Technology, Inc. and WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.LU., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, WM Museum, LLC, WM Teal, LLC, Weedmaps Germany GmbH, Transport Logistics Holding Company, LLC and WM Loyalty, LLC. All significant intercompany balance and transactions have been eliminated upon consolidation. Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the three and nine months ended September 30, 2021 and 2020. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, leases, valuation of goodwill and other intangible assets, valuation of warrant liability, deferred tax asset and tax receivable agreement liability, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. Risks and Uncertainties The Company operates in a relatively new industry where laws and regulations vary significantly by jurisdiction. Currently, several states permit medical or recreational use of cannabis; however, the use of cannabis is prohibited on a federal level in the United States. If any of the states that permit use of cannabis were to change their laws or the federal government was to actively enforce such prohibition, the Company’s business could be adversely affected. In addition, the Company’s ability to grow and meet its operating objectives depends largely on the continued legalization of cannabis on a widespread basis. There can be no assurance that such legalization will occur on a timely basis, or at all. Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed on a monthly basis and the Company reserves for all balances outstanding in excess of ninety days. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. The Company recorded a provision for doubtful accounts of $3.0 million and $0.9 million as of September 30, 2021 and December 31, 2020, respectively. Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and the Company’s SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing and software subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Starting on January 1, 2021, the Company eliminated the technology services fee charge related to the Company’s orders functionality. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $5.3 million was fully recognized in the first quarter of fiscal year 2021, and the deferred revenue balance as of September 30, 2021 of $7.8 million is expected to be fully recognized within the next twelve months. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenues recognized over time (1) $ 50,884 $ 44,459 $ 138,969 $ 112,615 Revenues recognized at a point in time (2) — 2,046 — 4,855 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 _________________ (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 U.S. revenues $ 50,884 $ 34,877 $ 138,969 $ 91,275 Foreign revenues — 11,628 — 26,195 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 All foreign revenues were generated in Canada. During the second half of fiscal 2020, the Company discontinued its services to Canada-based retail operator clients who failed to provide valid license information, similar to the transition the Company implemented in California at the end of fiscal 2019. Following the completion of the discontinuation of such services, all revenue has been generated in the United States. Income Taxes The Company Income Taxes. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision, and estimate of the Company’s annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), revaluations of the warrant liability, changes in flow-through income not subject to tax and tax law developments. As a result of the Business Combination, WM Technology, Inc. became the sole managing member of WMH LLC, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, WMH LLC is not subject to U.S. federal and certain state and local income taxes. Accordingly, no provision for U.S. federal and state income taxes has been recorded in the financial statements for the period of January 1 to June 16, 2021 as this period was prior to the Business Combination. Any taxable income or loss generated by WMH LLC is passed through to and included in the taxable income or loss of its members, including WM Technology, Inc. following the Business Combination, on a pro rata basis. WM Technology, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income of WMH LLC following the Business Combination. The Company is also subject to taxes in foreign jurisdictions. For the three and nine months ended September 30, 2021, the Company recorded a provision for income taxes of $0.4 million and $0.2 million, respectively. The provision for income taxes during the first quarter of 2021 was the result of an audit performed by the Canada Revenue Agency on prior years income taxes paid by the Company’s subsidiary, WM Canada Holdings, Inc. The effective tax rates differ from the federal statutory rate of 21% primarily due to the impact of warrant valuations, non-controlling interests represented by the portion of the flow-through income not subject to tax, permanent stock based compensation, and state taxes. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company does not believe it has any uncertain income tax positions that are more-likely-than-not to materially affect its condensed consolidated financial statements. Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. Advertising The Company expenses the cost of advertising in the period incurred. Advertising expense totaled $4.1 million and $2.4 million for the three months ended September 30, 2021 and 2020, respectively, and $11.9 million and $6.7 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in sales and marketing expense in the accompanying condensed consolidated statements of income. Political Contributions The Company expenses the costs of all political contributions in the period incurred. Political contributions totaled $0.2 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $0.5 million and $0.6 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in other expense in the accompanying condensed consolidated statements of income. Stock-Based Compensation The Company measures fair value of employee stock-based compensation awards on the date of grant and allocates the related expense over the requisite service period. The fair value of the Class P Units are measured using the Black-Scholes-Merton valuation model. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. Segment Reporting The Company and its subsidiaries operate in one business segment. Earnings Per Share Basic income (loss) per share is computed by dividing net income (loss) attributable to WM Technology, Inc. by the weighted-average number of shares of Class A Common Stock outstanding during the period. Diluted income (loss) per share is computed giving effect to all potential weighted-average dilutive shares for the period. The dilutive effect of outstanding awards or financial instruments, if any, is reflected in diluted income (loss) per share by application of the treasury stock method or if-converted method, as applicable. Prior to the Business Combination, the membership structure of Legacy WMH included units which had profit interests. The Company analyzed the calculation of earnings per unit for periods prior to the Business Combination and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. As a result, earnings per share information has not been presented for periods prior to the Business Combination on June 16, 2021. The basic and diluted income (loss) per share for the nine months ended September 30, 2021 represent the period from June 16, 2021 (Closing Date) to September 30, 2021. Warrant Liability The Company assumed 12,499,933 Public Warrants and 7,000,000 Private Placement Warrants (together, the “Warrants”) upon the Closing, all of which were issued in connection with Silver Spike’s initial public offering and entitle the holder to purchase one share of Class A Common Stock at an exercise price of at $11.50 per share. All of the Warrants remained outstanding as of September 30, 2021. The Public Warrants are publicly traded and are exercisable for cash unless certain conditions occur, such as the failure to have an effective registration statement related to the shares issuable upon exercise or redemption by the Company under certain conditions, at which time the warrants may be cashless exercised. The Private Placement Warrants are transferable, assignable or salable in certain limited exceptions. The Private Placement Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will cease to be Private Placement Warrants, and become Public Warrants and be redeemable by the Company and exercisable by such holders on the same basis as the other Public Warrants. The Company evaluated the Warrants under ASC 815-40 - Derivatives and Hedging - Contracts in Entity’s Own Equity Fair Value Measurements The Company follows the guidance in ASC 820 - Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: ● 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 the Company assessment of the assumptions that market participants would use in pricing the asset or liability. Tax Receivable Agreement The Business Combination was accomplished through what is commonly referred to as an “Up-C” structure, which is often used by partnerships and limited liability companies undertaking an initial public offering. The Up-C structure allows the Legacy WMH Unit holders to retain their equity ownership in WMH LLC, an entity that is classified as a partnership for U.S. federal income tax purposes, in the form of Units and provides potential future tax benefits for both the Company and the WMH LLC Unit holders when they ultimately exchange their pass-through interests for shares of Class A Common Stock. Additionally, the Company could obtain future increases in its tax basis of the assets of WMH LLC when such units are redeemed or exchanged by the continuing members. This increase in tax basis may have the effect of reducing the amounts paid in the future to various tax authorities. The increase in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. In connection with the Business Combination, the Company entered into a tax receivable agreement (the “Tax Receivable Agreement”) with continuing members that provides for a payment to the continuing Class A Unit holders of 85% of the amount of tax benefits, if any, that the Company realizes, or is deemed to realize, as a result of redemptions or exchanges of Units. In connection with such potential future tax benefits resulting from the Business Combination, the Company has established a deferred tax asset for the additional tax basis and a corresponding TRA liability of 85% of the expected benefit. The remaining 15% is recorded to additional paid-in capital. Leases Effective January 1, 2021, the Company accounts for its leases under ASC 842 - Leases In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components for all classes of assets. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and instead recognizes rent expense on a straight-line basis over the lease term. The Company continues to account for leases in the prior period financial statements under ASC 840, Leases Investment in Equity Security Investments in equity securities that do not have a readily determinable fair value and qualify for the measurement alternative for equity investments provided in ASC 321, Investments – Equity Securities Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The Company adopted ASC 842 as of January 1, 2021, using the modified retrospective transition approach by recording an ROU asset and lease liability for operating leases of $43.3 million and $48.4 million, respectively, at that date; the Company did not have any finance lease assets and liabilities upon adoption or any arrangements where it acts as a lessor. Adoption of ASC 842 did not have an effect on the Company’s retained earnings. The Company availed itself of the practical expedients provided under ASC 842 regarding identification of leases, lease classification, indirect costs, and the combination of lease and non-lease components for all classes of assets. The Company continues to account for leases in the prior period financial statements under ASC 840. | 2. Summary of significant accounting policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. Management believes that these accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.L.U., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, Weedmaps Germany GmbH, WM Teal, LLC, WM Museum, LLC, Weedmaps Artist Management, LLC, Ghost Gaming Holdings, LLC, WMBP Investment, LLC, and WMG Pharma GmbH. All significant intercompany balance and transactions have been eliminated upon consolidation. Discontinued Operations Effective April 30, 2018, the Company sold 100% of the equity interests in WMG Pharma GmbH to an entity owned by its founders for $13,490 and on May 31, 2018, the Company divested its equity interests in Ghost Gaming Holdings, LLC, Weedmaps Artist Management, LLC, and WMBP Investment, LLC (collectively, “Divested Entities”) to certain of its members. The fair value based on a valuation report for the Divested Entities was $1,495,000. No gain or loss was recorded due to the related party nature of the divestiture; instead the divestiture was recorded as a deemed distribution in member’s equity. The activities of the Divested Entities were included in the consolidated financial statements through the date of the divestiture. As a result of the Company’s decision to divest its interest in Divested Entities, the Company has reclassified and presented all related historical financial information as it relates to the Divested Entities as “discontinued operations” in the accompanying consolidated statements of operations as of and for the year ended December 31, 2018. In addition, all related activities have been excluded from footnote disclosures unless specifically referenced. These reclassifications have no effect on previously reported net income. Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the years ended December 31, 2020, 2019 and 2018. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, valuation of goodwill and other intangible assets, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. Risks and Uncertainties The Company operates in a relatively new industry where laws and regulations vary significantly by jurisdiction. Currently, several states permit medical or recreational use of cannabis; however, the use of cannabis is prohibited on a federal level in the United States. If any of the states that permit use of cannabis were to change their laws or the federal government was to actively enforce such prohibition, the Company’s business could be adversely affected. In addition, the Company’s ability to grow and meet its operating objectives depends largely on the continued legalization of cannabis on a widespread basis. There can be no assurance that such legalization will occur on a timely basis, or at all. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2020, 2019 and 2018, the Company did not have any cash equivalents. Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed monthly and past due balances are reviewed individually for collectability. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. As of December 31, 2020, and 2019, the Company recorded an allowance for bad debt of $857,382 and $913,715, respectively. Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades. Upon sale or disposition, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in the Company’s results from operations. Goodwill Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. For impairment purposes, the Company assesses qualitative factors to determine if it is necessary to perform the two-step quantitative goodwill impairment test. The Company assesses qualitative factors to determine if its sole reporting unit’s fair value is more likely than not to exceed its carrying value, including goodwill. In the event the Company determines that it is more likely than not that its reporting unit’s fair value is less than its carrying amount, quantitative testing is performed comparing recorded values to estimated fair values. Quantitative testing compares the fair value of the reporting unit to its book value, including goodwill. If the book value exceeds the fair value, then the Company would calculate the potential impairment loss by comparing the implied fair value of goodwill with the book value. If the implied fair value of goodwill is less than the book value, then an impairment charge would be recorded. For the years ended December 31, 2020 and 2019, there were no impairment of goodwill. The Company has elected not to amortize goodwill. Intangible Assets The Company’s intangible assets consist of trade and domain names, and software technology which are amortized using the straight-line method over 5 to 15 years. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted cash flows attributable to such assets including any cash flows upon their eventual disposition to their carrying value. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, then the assets are written down to their estimated fair value. For the years ended December 31, 2020 and 2019, there were no such impairments. Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and our SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $4.3 million was fully recognized in fiscal year 2020, and the current year deferred revenue balance of $5.3 million is expected to be recognized in 2021, which is expected to be within the next year. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Revenues recognized over time (1) $ 101,402,007 $ 143,489,929 $ 155,362,875 Revenues recognized at a point in time (2) — 741,550 6,427,887 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 U.S. revenues $ 100,670,847 $ 132,076,823 $ 130,373,022 Foreign revenues 731,160 12,154,656 31,417,740 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 All foreign revenues were generated in Canada. Income Taxes Other than for the Company’s foreign subsidiaries that are subject to their jurisdictions’ income tax laws, the remaining subsidiaries, as well as the holding entity, are not subject to income tax, with the members of the Company including their respective share of the Company’s profits and losses in their individual income tax returns. For the year ended December 31, 2019, the Company recorded a provision for income taxes of approximately $1.3 million, related to estimated taxable income from operations of WM Canada Holdings, Inc., in the accompanying statement of operations. No provision for income taxes was recorded for the year ended December 31, 2020 and 2018. The components of income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows: 2018 2019 2020 United States $ 12,010,276 $ (4,152,308 ) $ 38,877,652 Foreign 669,235 5,097,668 (47,659 ) Net income (loss) before provision for income taxes $ 12,679,511 $ 945,360 $ 38,829,993 While electing Limited Liability Company status, the Company does not believe it has any uncertain income tax positions that are more likely that not to materially affect its consolidated financial statements. The Company’s federal and state income tax returns remain open to agency examination for the standard statutory length of time after filing. Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. Fair Value Measurements At December 31, 2020 and 2019, the Company did not have any assets or liabilities measured at fair value on a recurring or nonrecurring basis. Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. Advertising The Company expenses the cost of all advertising in the period incurred. Advertising expense totaled $10.6 million, $20.6 million, and $6.6 million, for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in sales and marketing expense in the accompanying consolidated statements of operations. Other expense, net The company records interest expense, financing fees, political contributions, legal settlements, gain (loss) on currency exchange, and other tax related expenses in other expenses in the accompanying statement of operations. Total political contributions for the year ended December 31, 2020, 2019 and 2018 was $773,370, $915,250, and $795,275, respectively. The Company expenses the cost of all political contributions in the period incurred. Financing fees totaled $807,474, $3,540,636, and $286,228 for the years ended December 31, 2020, 2019 and 2018, respectively. The large increase in financing fees in 2019 related to legal and other consulting fees the Company incurred while working on multiple financing projects. The Company also incurred $610,539 in sales tax paid by one of the Company’s Canadian subsidiaries in 2019 due to certain sales taxes not collected from customers in the foreign jurisdiction and ultimately paid by the Company. No such cost was incurred in 2020 and 2018. The Company also recorded a gain (loss) from currency exchange of ($729,505), ($34,705) and $7,455 for fiscal years ended December 31, 2020, 2019 and 2018 related to revenue generated in Canada. Stock-Based Compensation The Company measures all employee stock-based compensation awards on the date of grant using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. Segment Reporting The Company and its subsidiaries operate in one business segment. Earnings Per Unit Earnings per unit amounts are computed independently for earnings per unit from continuing operations, loss per unit from discontinued operations and net earnings per unit. As a result, the sum of per unit amounts from continuing operations and discontinued operations may not equal the total per unit amounts for net earnings. All Class A Units, including Class A-1, Class A-2, and Class A-3 Units, have been included in the calculations for earnings per unit as of December 31, 2020, 2019 and 2018 primarily due to their voting and distribution rights. Since Class B Units had no voting, distribution, or dividend rights and were subject to exercise limitations, such units have been excluded from the calculations for earnings per unit as of December 31, 2020, 2019 and 2018. No other dilutive instruments were outstanding as of December 31, 2020, 2019, and 2018. See Note 8 for further discussion. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The new guidance is effective for private companies for annual periods beginning after December 15, 2020, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has multiple long-term operating leases and is currently in the process of evaluating the impact of the new accounting guidance on its consolidated balance sheets, consolidated statement of income and cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. The Company used the modified retrospective method of adoption, which would require the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2019. Comparative prior year periods would not be adjusted. The new accounting standard was applied to all contracts at the date of initial application. There was no cumulative effect of applying the new revenue standard to contracts executed in prior periods. As such, the adoption of the new accounting standard had no impact on the balance sheet and statement of operations in the current or prior periods. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The ASU also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The guidance is effective for reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Property and Equipment (FY)
Property and Equipment (FY) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment | 3. Property and equipment Property and equipment consists of the following as of December 31, 2020 and 2019: 2019 2020 Computer equipment $ 6,585,289 $ 7,117,299 Capitalized software 5,122,650 5,122,650 Furniture and fixtures 1,213,132 1,285,880 Leasehold improvements 1,892,172 2,598,566 14,813,243 16,124,395 Less: accumulated depreciation and amortization (5,657,718 ) (8,736,975 ) $ 9,155,525 $ 7,387,420 Depreciation and amortization expense for the years ended December 31, 2020, 2019 and 2018 amounted to $3,079,257, $1,776,983, and $1,266,508, respectively. At December 31, 2020 and 2019, the Company held $78,921, and $174,361 of property and equipment, net at its foreign locations, respectively. |
Intangible Assets (FY)
Intangible Assets (FY) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible Assets [Abstract] | |
Intangible Assets | 4. Intangible assets Intangible assets consisted of the following as of December 31, 2020 and 2019: 2019 2020 Trade and domain names $ 7,255,381 $ 7,255,381 Software technology 3,468,534 3,468,534 10,723,915 10,723,915 Less: accumulated amortization (5,320,959 ) (6,219,507 ) Total intangible assets $ 5,402,956 $ 4,504,408 Amortization expense for the years ended December 31, 2020, 2019 and 2018 amounted to $898,548, $3,385,613, and $882,120, respectively. Included in amortization in 2019, is accelerated amortization of $2,479,029 related to intangible assets that the Company initially determined had a useful life of three years. All these intangible assets related to a marketing project that the Company determined will not continue past the end of the fiscal year 2019 and therefore all amortization related to these assets were accelerated and all cost and accumulated amortization written off. |
Discontinued Operations (FY)
Discontinued Operations (FY) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | 5. Discontinued operations As a result of the Company’s decision to divest its interest in Divested Entities, the results of operations relating to the Divested Entities have been reclassified to discontinued operations in the consolidated statements of operations for all periods presented. Revenue and net loss related to discontinued operations for the years ended December 31, 2020, 2019 and 2018 are as follows: 2018 2019 2020 Revenue $ 85,907 $ — $ — Net Loss $ (1,674,738 ) $ — $ — Cash flow from discontinued operations for the year ended December 31, 2020, 2019 and 2018 are as follows: 2018 2019 2020 Net cash used in operating activities $ (1,670,873 ) $ — $ — Net cash provided by (used in) investing activities 355,536 $ — — Net cash provided by financing activities $ 1,268,121 $ — $ — |
Notes Payable to Members (FY)
Notes Payable to Members (FY) | 9 Months Ended |
Sep. 30, 2021 | |
Notes Payable to Members [Abstract] | |
Notes Payable to Members | 6. Notes payable to members The Company assumed four notes payable to the two majority members in connection with the purchase of Weedmaps in 2012. Of the four notes assumed with the purchase, three notes were paid off in full in prior periods. As of December 31, 2020 and 2019, the principal balance of the remaining note totaled $205,324, which bears no interest, and is due in June 2021. |
Members' Equity (FY)
Members' Equity (FY) | 12 Months Ended |
Dec. 31, 2020 | |
Members' Equity [Abstract] | |
Members' Equity | 7. Members’ equity The Company has authorized the following number of Units which have been designated as follows: ● Class A-1 Units - 821,769 authorized, issued and outstanding at December 31, 2020, 2019 and 2018; ● Class A-2 Units - 34,264 authorized; 24,058 Class A-2 Units issued and outstanding as of December 31, 2020, 2019, and 2018; ● Class A-3 Units / Class B Units - Class B Units or Class A-3 Units can be issued interchangeably, as determined by the Company’s Board of Managers. 274,822 Units authorized; 53,333 Class A-3 Units and 221,483 Class B Units issued and outstanding as of December 31, 2020. 274,667 Units authorized; 53,333 Class A-3 Units and 210,744 Class B Units issued and outstanding as of December 31, 2019. 274,667 Units authorized; 53,333 Class A-3 Units and 192,038 Class B Units issued and outstanding as of December 31, 2018. As of December 31, 2018, 821,769 Class A-1 Units were authorized, issued and outstanding. On August 15, 2018, the Company’s operating agreement was amended to authorize the subclasses of Class A Units above, and the existing Class A Units prior to such date were designated as Class A-1 Units. In 2014, the Company adopted the 2014 WM Holding Company Equity Incentive Plan (the “Original Equity Plan”) to allow for the issuance of Class B Units to employees, consultants, and other service providers. The Original Equity Plan was amended and restated in October 2015 and May 2018 to, among other things, increase the number of Units available for issuance under the Original Equity Plan, as amended. On August 15, 2018, the Company entered into the Third Amended and Restated Equity Incentive Plan, which allows the Company to grant profits interest in the form of both Class B Units and Class A-3 Units and further increases the Units available for issuance under the Original Equity Plan, as amended. The Third Amended and Restated Equity Incentive Plan was further revised in 2020 to increase the number of Units available for issuance. The Class A Units are voting and all profits, losses and distributions are allocated in accordance with the terms set forth in the operating agreement of WM Holding Company, LLC. On various dates throughout 2018, starting on August 15, 2018, the Company issued and sold 24,058 newly designated Class A-2 Units to a group of third-party investors for a total consideration of $17.6 million. The Class B Units are nonvoting, do not receive an income allocation or distributions, but will share in the sale proceeds in the event of a change of control transaction or be converted to common stock in the event of an initial public offering (a “Triggering Event”). Once vested, the Class A-3 and Class B Units do not expire and holders are not required to be employed by the Company at the time of a Triggering Event to share in the proceeds of a transaction. Such Class A-3 and Class B Units are treated as profits interests under the Internal Revenue Code and are therefore subject to distribution hurdles before they participate in distributions from Triggering Events. The following presents issuances of Class A-3 and Class B Units during the years ended December 31, 2020, 2019 and 2018: Outstanding at December 31, 2017 252,241 Granted 44,125 Repurchase (12,391 ) Cancellations (38,604 ) Outstanding at December 31, 2018 245,371 Granted 25,990 Cancellations (7,284 ) Outstanding at December 31, 2019 264,077 Granted 14,250 Repurchase (1,900 ) Cancellations (1,611 ) Outstanding at December 31, 2020 274,816 Vested as of December 31, 2019 207,398 Vested as of December 31, 2020 234,114 The following presents a summary of unvested Class A-3 and Class B Units during the years ended December 31, 2020, 2019 and 2018: Weighted - Average Units Grant Date Fair Value Remaining Years to Vest Remaining Unrecognized Nonvested, December 31, 2018 62,024 $ 236.37 3.09 $ 12,215,953 Granted 25,990 531.80 Vested (24,051 ) 231.74 Cancelled (7,284 ) 238.87 Nonvested, December 31, 2019 56,679 $ 373.47 2.65 $ 18,682,331 Granted 14,250 724.28 Vested (28,616 ) 359.45 Cancelled (1,611 ) 450.83 Nonvested, December 31, 2020 40,702 $ 518.13 2.38 $ 22,474,033 The Company has accounted for the issuance of Class A-3 and Class B Units in accordance with ASC 718, Stock Based Compensation. The Company considers the limitation on the exercisability of the Class A-3 and Class B Units to be a performance condition and, therefore, records compensation cost when it becomes probable that the performance condition will be met. As of December 31, 2020, and 2019, no compensation cost has been recorded in connection with the issuance of the Class A-3 and Class B Units as management did not believe that achievement of the performance condition was probable. The Company measures all employee stock-based compensation awards on the date of grant using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period (generally the vesting period of the equity award) which is typically four years. When awards include a performance condition that impacts the vesting or exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The fair value of Class A-3 and B-Units granted were estimated on their respective grant dates using the Black-Scholes-Merton option pricing model and the following assumptions for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Volatility 70% 70% 50% - 70% Risk - free interest rate 2.65% - 2.90% 1.68% - 2.49% 0.21% - 0.29% Dividend yield 0.00% 0.00% 0.00% Expected life of option (in years) 4 years 4 years 4 years Weighted - average fair value of common stock $305.35 $531.80 $724.28 The total cumulative amount of compensation cost that would have been recognized had all performance conditions been met is $12.0 million as of December 31, 2020. As a limited liability company, each member’s liability is limited to the capital invested. Should the Company consummate the business combination with Silver Spike Acquisition Corp. and become a publicly traded entity, the limitations on the exercisability of the Class A-3 an B units will be removed and all performance obligations would have been met, resulting in the recognition of all cumulative compensation cost. The Company has an unlimited life subject to consents to dissolve the Company by a majority of the Company’s members. |
Commitments and Contingencies (
Commitments and Contingencies (FY) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | ||
Commitments and Contingencies | 4. Commitments and Contingencies Litigation During the ordinary course of the Company’s business, it is subject to various claims and litigation. Management believes that the outcome of such claims or litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flow. In September 2019, the Company received a grand jury subpoena prepared by the United States Attorney’s Office for the Eastern District of California (“DOJ”). The subpoena demanded certain categories of information from the Company, some of which the Company has already provided. Management believes that the outcome of such inquiry will not have a material adverse impact of the Company’s financial position, results of operations, or cash flow. On August 4, 2021, the DOJ notified the Company that the DOJ was withdrawing the subpoena issued in September 2019, and that it had no present plan to exercise its discretion to proceed further in the matter. The DOJ cautioned that its decision not to proceed further did not constitute a grant of immunity, and that its plans could change in the future without notice. Beginning on January 27, 2021, purported stockholders of Silver Spike filed or threatened to file lawsuits in connection with the Merger, including two actions filed in the Supreme Court of the State of New York, captioned, Brait v. Silver Spike Acquisition Corp., et al., Index No. 650629/2021 (N.Y. Sup. Ct.), and Stout v. Silver Spike Acquisition Corp., et al., No. 650686/2021 (N.Y. Sup. Ct.). The operative complaints in the Brait and Stout actions allege that the Registration Statement issued in connection with the Merger omits material information related to the proposed transaction, and asserts claims for breach of fiduciary duty against certain of Silver Spike’s then officers and directors and for aiding and abetting breach of fiduciary duty against Silver Spike. The Stout complaint also asserts aiding and abetting claims against Legacy WMH and Merger Sub. Plaintiffs seek injunctive relief to enjoin the Merger and to require defendants to issue supplemental disclosures as outlined in the complaints or, in the event the transaction is consummated in the absence of such supplemental disclosures, an order rescinding the transaction and awarding rescissory damages. Plaintiffs also seek an award of attorneys’ fees and costs. The Company has received similar demands from other purported shareholders of Silver Spike, including one that attached a draft complaint, styled Fusco v. Silver Spike Acquisition Corp., et al., asserting similar fiduciary duty claims as in the Brait and Stout actions, as well as separate claims for violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934; the draft complaint seeks an injunction of the Merger, pending dissemination of supplemental disclosures, unspecified damages and attorneys’ fees and costs. The Brait action was voluntarily discontinued on June 29, 2021.The Company believes that these allegations are without merit. These matters are in the early stages and the Company is unable to reasonably determine the outcome or estimate the loss, if any, and as such, have not recorded a loss contingency. | 8. Commitments and contingencies Operating Leases The Company leases space in Irvine, California; Los Angeles, California; Denver, Colorado; New York, New York; Ontario, Canada; and Barcelona, Spain. Minimum lease obligations under noncancelable operating leases, which expire at various dates through the year ended 2031, are as follows: Years ending December 31, 2021 8,225,436 2022 9,605,487 2023 9,897,648 2024 9,405,482 2025 and beyond 35,561,951 $ 72,696,004 Rent expense for the years ended December 31, 2020, 2019 and 2018 amounted to $11.1 million, $5.6 million, and $4.1 million, respectively, and is included in general and administrative expense in the accompanying consolidated statements of operations. Litigation During the ordinary course of the Company’s business, it is subject to various claims and litigation. Management believes that the outcome of such claims or litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flow. In September 2019, the Company received a grand jury subpoena prepared by the United States Attorney’s Office for the Eastern District of California. The subpoena demanded certain categories of information from the Company, some of which the Company has already provided. Management believes that the outcome of such inquiry will not have a material adverse impact of the Company’s financial position, results of operations, or cash flow. |
Subsequent Events (FY)
Subsequent Events (FY) | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent events The Company evaluated events subsequent to December 31, 2020 for their potential impact on the consolidated financial statements and disclosures through March 9, 2021, the date the consolidated financial statements were available to be issued. With respect to the ongoing and evolving coronavirus (COVID-19) outbreak, which was designated as a pandemic by the World Health Organization on March 11, 2020, the outbreak has caused substantial disruption in international and U.S. economies and markets. The outbreak has potential to have an adverse impact on the manufacturing, distribution, logistics, and technology industries and, if repercussions of the outbreak are prolonged, could have a significant adverse impact on the cannabis industry and the Company, which could be material. The Company’s management cannot at this point estimate the impact of the outbreak on its business and no provision for this outbreak are reflected in the accompanying financial statements. On December 10, 2020, the Company announced an agreement for a business combination with Silver Spike Acquisition Corp., a publicly traded special purpose acquisition company, that would result in the Company becoming a publicly traded entity following the close of the transaction. The estimated gross proceeds of the transaction are $575 million made up of $250 million of cash held-in-trust by Silver Spike Acquisition Corp. and an additional $325 million of fully committed common stock from a private investment in public equity. The transaction is estimated to close in the second quarter of fiscal year 2021. |
Business and Organization (Q3)
Business and Organization (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Organization | 1. Business and Organization WM Technology, Inc. (the “Company”) is a technology and software infrastructure provider to retailers and brands in the U.S. state-legal and Canadian cannabis markets. The Company also provides information on the cannabis plant and the industry and advocates for legalization. The Weedmaps listings marketplace provides consumers with information regarding cannabis retailers and brands, as well as the strain, pricing, and other information regarding locally available cannabis products, through the Company’s website and mobile apps, permitting product discovery and reservation of products for pickup by consumers or delivery to consumers by participating retailers. The Company sells its offerings in the United States, and the Company has a limited number of non-monetized listings in several international countries including Austria, Canada, Germany, the Netherlands, Spain, and Switzerland. Through December 31, 2020, the Company offered standard listing subscription clients access to a listing page on weedmaps.com in addition to free access to its SaaS solutions, including WM Orders, WM Dispatch, WM Exchange, WM Retail and WM Store, along with its API integrations with third-party point-of-sale (“POS”) systems. For access to the orders functionality, beginning in September 2019, standard listing clients were also then required to pay a fixed services fee per delivery order submitted which the Company imposed regardless of whether the proposed order was canceled or completed. As of January 1, 2021, the Company migrated all standard listing subscription clients to its new WM Business subscription package. Under this new subscription package, all retailers continue to receive access to a standard listing page and SaaS solutions. In addition, the Company began including access to WM Dashboard and eliminated the technology services fee on delivery orders as part of the transition to the new WM Business subscription package. The Company operates in the United States, Canada, and other foreign jurisdictions where medical and/or adult use cannabis is legal under state or applicable national law. The Company is headquartered in Irvine, California. Business Combination WM Technology, Inc. was initially incorporated in the Cayman Islands on June 7, 2019 under the name “Silver Spike Acquisition Corp.” (“Silver Spike”). Silver Spike was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. On June 16, 2021 (the “Closing Date”), Silver Spike consummated the business combination (the “Business Combination”), pursuant to that certain Agreement and Plan of Merger, dated December 10, 2020 (the “Merger Agreement”), by and among Silver Spike, Silver Spike Merger Sub LLC, a Delaware limited liability company and a wholly owned direct subsidiary of Silver Spike Acquisition Corp. (“Merger Sub”), WM Holding Company, LLC, a Delaware limited liability company (when referred to in its pre-Business Combination capacity, “Legacy WMH” and following the Business Combination, “WMH LLC”), and Ghost Media Group, LLC, a Nevada limited liability company, solely in its capacity as the initial holder representative (the “Holder Representative”). On the Closing Date, and in connection with the closing of the Business Combination (the “Closing”), Silver Spike was domesticated and continues as a Delaware corporation, changing its name to WM Technology, Inc. The Company was reorganized into an Up-C structure, in which substantially all of the assets and business of the Company are held by WMH LLC and continue to operate through WMH LLC and its subsidiaries, and WM Technology, Inc.’s material assets are the equity interests of WMH LLC indirectly held by it. Legacy WMH was determined to be the accounting acquirer in the Business Combination, which was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Q3) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s condensed consolidated financial statements. Such condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. Management believes that these accounting policies conform to GAAP in all material respects, and have been consistently applied in preparing the accompanying condensed consolidated financial statements. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-1 of Regulation S-X. Accordingly, certain information and footnotes required by GAAP in annual financial statements have been omitted or condensed and these interim financial statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in the Company’s Registration Statement on Form S-1 filed with the SEC on July 8, 2021. The condensed financial statements of the Company include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair statement of the Company’s financial position as of September 30, 2021, and results of its operations and its cash flows for the interim periods presented. The results of operations for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the entire year. There have been no significant changes in the Company’s accounting policies from those described in the Company’s audited consolidated financial statements and the related notes to those statements, other than the adoption of the lease accounting guidance. Pursuant to the Merger Agreement, the Business Combination was accounted for as a reverse recapitalization in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, Silver Spike was treated as the acquired company and Legacy WMH was treated as the acquirer for financial statement reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Legacy WMH issuing stock for the net assets of Silver Spike, accompanied by a recapitalization. Legacy WMH was determined to be the accounting acquirer based on evaluation of the following facts and circumstances: ● Legacy WMH Class A Unit holders, through their ownership of the Class V Common Stock, have the greatest voting interest in the Company with over 50% of the voting interest; ● Legacy WMH selected the majority of the new board of directors of the Company; ● Legacy WMH senior management is the senior management of the Company; and ● Legacy WMH is the larger entity based on historical operating activity and has the larger employee base. Thus, the financial statements included in this quarterly report reflect (i) the historical operating results of Legacy WMH prior to the Business Combination; (ii) the combined results of the WMH LLC and Silver Spike following the Business Combination; and (iii) the acquired assets and liabilities of Silver Spike stated at historical cost, with no goodwill or other intangible assets recorded. Principles of Consolidation The condensed consolidated financial statements include the accounts of WM Technology, Inc. and WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.LU., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, WM Museum, LLC, WM Teal, LLC, Weedmaps Germany GmbH, Transport Logistics Holding Company, LLC and WM Loyalty, LLC. All significant intercompany balance and transactions have been eliminated upon consolidation. Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the three and nine months ended September 30, 2021 and 2020. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, leases, valuation of goodwill and other intangible assets, valuation of warrant liability, deferred tax asset and tax receivable agreement liability, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. Risks and Uncertainties The Company operates in a relatively new industry where laws and regulations vary significantly by jurisdiction. Currently, several states permit medical or recreational use of cannabis; however, the use of cannabis is prohibited on a federal level in the United States. If any of the states that permit use of cannabis were to change their laws or the federal government was to actively enforce such prohibition, the Company’s business could be adversely affected. In addition, the Company’s ability to grow and meet its operating objectives depends largely on the continued legalization of cannabis on a widespread basis. There can be no assurance that such legalization will occur on a timely basis, or at all. Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed on a monthly basis and the Company reserves for all balances outstanding in excess of ninety days. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. The Company recorded a provision for doubtful accounts of $3.0 million and $0.9 million as of September 30, 2021 and December 31, 2020, respectively. Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and the Company’s SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing and software subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Starting on January 1, 2021, the Company eliminated the technology services fee charge related to the Company’s orders functionality. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $5.3 million was fully recognized in the first quarter of fiscal year 2021, and the deferred revenue balance as of September 30, 2021 of $7.8 million is expected to be fully recognized within the next twelve months. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenues recognized over time (1) $ 50,884 $ 44,459 $ 138,969 $ 112,615 Revenues recognized at a point in time (2) — 2,046 — 4,855 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 _________________ (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 U.S. revenues $ 50,884 $ 34,877 $ 138,969 $ 91,275 Foreign revenues — 11,628 — 26,195 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 All foreign revenues were generated in Canada. During the second half of fiscal 2020, the Company discontinued its services to Canada-based retail operator clients who failed to provide valid license information, similar to the transition the Company implemented in California at the end of fiscal 2019. Following the completion of the discontinuation of such services, all revenue has been generated in the United States. Income Taxes The Company Income Taxes. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision, and estimate of the Company’s annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), revaluations of the warrant liability, changes in flow-through income not subject to tax and tax law developments. As a result of the Business Combination, WM Technology, Inc. became the sole managing member of WMH LLC, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, WMH LLC is not subject to U.S. federal and certain state and local income taxes. Accordingly, no provision for U.S. federal and state income taxes has been recorded in the financial statements for the period of January 1 to June 16, 2021 as this period was prior to the Business Combination. Any taxable income or loss generated by WMH LLC is passed through to and included in the taxable income or loss of its members, including WM Technology, Inc. following the Business Combination, on a pro rata basis. WM Technology, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income of WMH LLC following the Business Combination. The Company is also subject to taxes in foreign jurisdictions. For the three and nine months ended September 30, 2021, the Company recorded a provision for income taxes of $0.4 million and $0.2 million, respectively. The provision for income taxes during the first quarter of 2021 was the result of an audit performed by the Canada Revenue Agency on prior years income taxes paid by the Company’s subsidiary, WM Canada Holdings, Inc. The effective tax rates differ from the federal statutory rate of 21% primarily due to the impact of warrant valuations, non-controlling interests represented by the portion of the flow-through income not subject to tax, permanent stock based compensation, and state taxes. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company does not believe it has any uncertain income tax positions that are more-likely-than-not to materially affect its condensed consolidated financial statements. Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. Advertising The Company expenses the cost of advertising in the period incurred. Advertising expense totaled $4.1 million and $2.4 million for the three months ended September 30, 2021 and 2020, respectively, and $11.9 million and $6.7 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in sales and marketing expense in the accompanying condensed consolidated statements of income. Political Contributions The Company expenses the costs of all political contributions in the period incurred. Political contributions totaled $0.2 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $0.5 million and $0.6 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in other expense in the accompanying condensed consolidated statements of income. Stock-Based Compensation The Company measures fair value of employee stock-based compensation awards on the date of grant and allocates the related expense over the requisite service period. The fair value of the Class P Units are measured using the Black-Scholes-Merton valuation model. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. Segment Reporting The Company and its subsidiaries operate in one business segment. Earnings Per Share Basic income (loss) per share is computed by dividing net income (loss) attributable to WM Technology, Inc. by the weighted-average number of shares of Class A Common Stock outstanding during the period. Diluted income (loss) per share is computed giving effect to all potential weighted-average dilutive shares for the period. The dilutive effect of outstanding awards or financial instruments, if any, is reflected in diluted income (loss) per share by application of the treasury stock method or if-converted method, as applicable. Prior to the Business Combination, the membership structure of Legacy WMH included units which had profit interests. The Company analyzed the calculation of earnings per unit for periods prior to the Business Combination and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. As a result, earnings per share information has not been presented for periods prior to the Business Combination on June 16, 2021. The basic and diluted income (loss) per share for the nine months ended September 30, 2021 represent the period from June 16, 2021 (Closing Date) to September 30, 2021. Warrant Liability The Company assumed 12,499,933 Public Warrants and 7,000,000 Private Placement Warrants (together, the “Warrants”) upon the Closing, all of which were issued in connection with Silver Spike’s initial public offering and entitle the holder to purchase one share of Class A Common Stock at an exercise price of at $11.50 per share. All of the Warrants remained outstanding as of September 30, 2021. The Public Warrants are publicly traded and are exercisable for cash unless certain conditions occur, such as the failure to have an effective registration statement related to the shares issuable upon exercise or redemption by the Company under certain conditions, at which time the warrants may be cashless exercised. The Private Placement Warrants are transferable, assignable or salable in certain limited exceptions. The Private Placement Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will cease to be Private Placement Warrants, and become Public Warrants and be redeemable by the Company and exercisable by such holders on the same basis as the other Public Warrants. The Company evaluated the Warrants under ASC 815-40 - Derivatives and Hedging - Contracts in Entity’s Own Equity Fair Value Measurements The Company follows the guidance in ASC 820 - Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: ● 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 the Company assessment of the assumptions that market participants would use in pricing the asset or liability. Tax Receivable Agreement The Business Combination was accomplished through what is commonly referred to as an “Up-C” structure, which is often used by partnerships and limited liability companies undertaking an initial public offering. The Up-C structure allows the Legacy WMH Unit holders to retain their equity ownership in WMH LLC, an entity that is classified as a partnership for U.S. federal income tax purposes, in the form of Units and provides potential future tax benefits for both the Company and the WMH LLC Unit holders when they ultimately exchange their pass-through interests for shares of Class A Common Stock. Additionally, the Company could obtain future increases in its tax basis of the assets of WMH LLC when such units are redeemed or exchanged by the continuing members. This increase in tax basis may have the effect of reducing the amounts paid in the future to various tax authorities. The increase in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. In connection with the Business Combination, the Company entered into a tax receivable agreement (the “Tax Receivable Agreement”) with continuing members that provides for a payment to the continuing Class A Unit holders of 85% of the amount of tax benefits, if any, that the Company realizes, or is deemed to realize, as a result of redemptions or exchanges of Units. In connection with such potential future tax benefits resulting from the Business Combination, the Company has established a deferred tax asset for the additional tax basis and a corresponding TRA liability of 85% of the expected benefit. The remaining 15% is recorded to additional paid-in capital. Leases Effective January 1, 2021, the Company accounts for its leases under ASC 842 - Leases In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components for all classes of assets. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and instead recognizes rent expense on a straight-line basis over the lease term. The Company continues to account for leases in the prior period financial statements under ASC 840, Leases Investment in Equity Security Investments in equity securities that do not have a readily determinable fair value and qualify for the measurement alternative for equity investments provided in ASC 321, Investments – Equity Securities Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The Company adopted ASC 842 as of January 1, 2021, using the modified retrospective transition approach by recording an ROU asset and lease liability for operating leases of $43.3 million and $48.4 million, respectively, at that date; the Company did not have any finance lease assets and liabilities upon adoption or any arrangements where it acts as a lessor. Adoption of ASC 842 did not have an effect on the Company’s retained earnings. The Company availed itself of the practical expedients provided under ASC 842 regarding identification of leases, lease classification, indirect costs, and the combination of lease and non-lease components for all classes of assets. The Company continues to account for leases in the prior period financial statements under ASC 840. | 2. Summary of significant accounting policies The summary of significant accounting policies presented below is designed to assist in understanding the Company’s consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of the Company’s management, who is responsible for their integrity and objectivity. Management believes that these accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying consolidated financial statements. Principles of Consolidation The consolidated financial statements include the accounts of WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.L.U., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, Weedmaps Germany GmbH, WM Teal, LLC, WM Museum, LLC, Weedmaps Artist Management, LLC, Ghost Gaming Holdings, LLC, WMBP Investment, LLC, and WMG Pharma GmbH. All significant intercompany balance and transactions have been eliminated upon consolidation. Discontinued Operations Effective April 30, 2018, the Company sold 100% of the equity interests in WMG Pharma GmbH to an entity owned by its founders for $13,490 and on May 31, 2018, the Company divested its equity interests in Ghost Gaming Holdings, LLC, Weedmaps Artist Management, LLC, and WMBP Investment, LLC (collectively, “Divested Entities”) to certain of its members. The fair value based on a valuation report for the Divested Entities was $1,495,000. No gain or loss was recorded due to the related party nature of the divestiture; instead the divestiture was recorded as a deemed distribution in member’s equity. The activities of the Divested Entities were included in the consolidated financial statements through the date of the divestiture. As a result of the Company’s decision to divest its interest in Divested Entities, the Company has reclassified and presented all related historical financial information as it relates to the Divested Entities as “discontinued operations” in the accompanying consolidated statements of operations as of and for the year ended December 31, 2018. In addition, all related activities have been excluded from footnote disclosures unless specifically referenced. These reclassifications have no effect on previously reported net income. Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the years ended December 31, 2020, 2019 and 2018. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, valuation of goodwill and other intangible assets, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. Risks and Uncertainties The Company operates in a relatively new industry where laws and regulations vary significantly by jurisdiction. Currently, several states permit medical or recreational use of cannabis; however, the use of cannabis is prohibited on a federal level in the United States. If any of the states that permit use of cannabis were to change their laws or the federal government was to actively enforce such prohibition, the Company’s business could be adversely affected. In addition, the Company’s ability to grow and meet its operating objectives depends largely on the continued legalization of cannabis on a widespread basis. There can be no assurance that such legalization will occur on a timely basis, or at all. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2020, 2019 and 2018, the Company did not have any cash equivalents. Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed monthly and past due balances are reviewed individually for collectability. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. As of December 31, 2020, and 2019, the Company recorded an allowance for bad debt of $857,382 and $913,715, respectively. Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades. Upon sale or disposition, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in the Company’s results from operations. Goodwill Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. For impairment purposes, the Company assesses qualitative factors to determine if it is necessary to perform the two-step quantitative goodwill impairment test. The Company assesses qualitative factors to determine if its sole reporting unit’s fair value is more likely than not to exceed its carrying value, including goodwill. In the event the Company determines that it is more likely than not that its reporting unit’s fair value is less than its carrying amount, quantitative testing is performed comparing recorded values to estimated fair values. Quantitative testing compares the fair value of the reporting unit to its book value, including goodwill. If the book value exceeds the fair value, then the Company would calculate the potential impairment loss by comparing the implied fair value of goodwill with the book value. If the implied fair value of goodwill is less than the book value, then an impairment charge would be recorded. For the years ended December 31, 2020 and 2019, there were no impairment of goodwill. The Company has elected not to amortize goodwill. Intangible Assets The Company’s intangible assets consist of trade and domain names, and software technology which are amortized using the straight-line method over 5 to 15 years. Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted cash flows attributable to such assets including any cash flows upon their eventual disposition to their carrying value. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, then the assets are written down to their estimated fair value. For the years ended December 31, 2020 and 2019, there were no such impairments. Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and our SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $4.3 million was fully recognized in fiscal year 2020, and the current year deferred revenue balance of $5.3 million is expected to be recognized in 2021, which is expected to be within the next year. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Revenues recognized over time (1) $ 101,402,007 $ 143,489,929 $ 155,362,875 Revenues recognized at a point in time (2) — 741,550 6,427,887 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 U.S. revenues $ 100,670,847 $ 132,076,823 $ 130,373,022 Foreign revenues 731,160 12,154,656 31,417,740 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 All foreign revenues were generated in Canada. Income Taxes Other than for the Company’s foreign subsidiaries that are subject to their jurisdictions’ income tax laws, the remaining subsidiaries, as well as the holding entity, are not subject to income tax, with the members of the Company including their respective share of the Company’s profits and losses in their individual income tax returns. For the year ended December 31, 2019, the Company recorded a provision for income taxes of approximately $1.3 million, related to estimated taxable income from operations of WM Canada Holdings, Inc., in the accompanying statement of operations. No provision for income taxes was recorded for the year ended December 31, 2020 and 2018. The components of income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows: 2018 2019 2020 United States $ 12,010,276 $ (4,152,308 ) $ 38,877,652 Foreign 669,235 5,097,668 (47,659 ) Net income (loss) before provision for income taxes $ 12,679,511 $ 945,360 $ 38,829,993 While electing Limited Liability Company status, the Company does not believe it has any uncertain income tax positions that are more likely that not to materially affect its consolidated financial statements. The Company’s federal and state income tax returns remain open to agency examination for the standard statutory length of time after filing. Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. Fair Value Measurements At December 31, 2020 and 2019, the Company did not have any assets or liabilities measured at fair value on a recurring or nonrecurring basis. Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. Advertising The Company expenses the cost of all advertising in the period incurred. Advertising expense totaled $10.6 million, $20.6 million, and $6.6 million, for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in sales and marketing expense in the accompanying consolidated statements of operations. Other expense, net The company records interest expense, financing fees, political contributions, legal settlements, gain (loss) on currency exchange, and other tax related expenses in other expenses in the accompanying statement of operations. Total political contributions for the year ended December 31, 2020, 2019 and 2018 was $773,370, $915,250, and $795,275, respectively. The Company expenses the cost of all political contributions in the period incurred. Financing fees totaled $807,474, $3,540,636, and $286,228 for the years ended December 31, 2020, 2019 and 2018, respectively. The large increase in financing fees in 2019 related to legal and other consulting fees the Company incurred while working on multiple financing projects. The Company also incurred $610,539 in sales tax paid by one of the Company’s Canadian subsidiaries in 2019 due to certain sales taxes not collected from customers in the foreign jurisdiction and ultimately paid by the Company. No such cost was incurred in 2020 and 2018. The Company also recorded a gain (loss) from currency exchange of ($729,505), ($34,705) and $7,455 for fiscal years ended December 31, 2020, 2019 and 2018 related to revenue generated in Canada. Stock-Based Compensation The Company measures all employee stock-based compensation awards on the date of grant using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. Segment Reporting The Company and its subsidiaries operate in one business segment. Earnings Per Unit Earnings per unit amounts are computed independently for earnings per unit from continuing operations, loss per unit from discontinued operations and net earnings per unit. As a result, the sum of per unit amounts from continuing operations and discontinued operations may not equal the total per unit amounts for net earnings. All Class A Units, including Class A-1, Class A-2, and Class A-3 Units, have been included in the calculations for earnings per unit as of December 31, 2020, 2019 and 2018 primarily due to their voting and distribution rights. Since Class B Units had no voting, distribution, or dividend rights and were subject to exercise limitations, such units have been excluded from the calculations for earnings per unit as of December 31, 2020, 2019 and 2018. No other dilutive instruments were outstanding as of December 31, 2020, 2019, and 2018. See Note 8 for further discussion. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The new guidance is effective for private companies for annual periods beginning after December 15, 2020, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has multiple long-term operating leases and is currently in the process of evaluating the impact of the new accounting guidance on its consolidated balance sheets, consolidated statement of income and cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. The Company used the modified retrospective method of adoption, which would require the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2019. Comparative prior year periods would not be adjusted. The new accounting standard was applied to all contracts at the date of initial application. There was no cumulative effect of applying the new revenue standard to contracts executed in prior periods. As such, the adoption of the new accounting standard had no impact on the balance sheet and statement of operations in the current or prior periods. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The ASU also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The guidance is effective for reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Leases (Q3)
Leases (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 3. Leases On January 1, 2021, the Company adopted ASC 842 The components of lease related costs for the three and nine months ended September 30, 2021 are as follows (in thousands): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Operating lease cost $ 2,350 $ 7,118 Variable lease cost 565 1,715 Operating lease cost 2,915 8,833 Short-term lease cost 1 88 Total lease cost $ 2,916 $ 8,921 For the three and nine months ended September 30, 2021, the Company made cash payments of $2.4 million and $5.9 million, respectively, on its operating leases, all of which were included in cash flows from operating activities within the condensed consolidated statements of cash flows. During the nine months ended September 30, 2021, ROU assets obtained in exchange for operating lease liabilities were $43.3 million. As of September 30, 2021, future minimum payments for the next five years and thereafter are as follows (in thousands): Operating Leases Remaining period in 2021 (three months) $ 2,343 Year ended December 31, 2022 9,597 Year ended December 31, 2023 9,898 Year ended December 31, 2024 9,405 Year ended December 31, 2025 5,830 Thereafter 29,732 Future minimum lease payments $ 66,805 Less: present value discount (20,736 ) Operating lease liabilities $ 46,069 As of September 30, 2021, the Company’s operating leases had a weighted average remaining lease term of 7.6 years and a weighted-average discount rate of 9.8%. The Company’s lease agreements do not provide an implicit rate and as a result, the Company used an estimated incremental borrowing rate, which was derived from third-party information available at the time the Company adopted ASC 842 in determining the present value of future lease payments. The rate used is for a secured borrowing of a similar term as the right of use asset. During the nine months ended September 30, 2021, the Company recognized an impairment charge of $2.4 million related to an ROU asset reducing the carrying value of the lease asset to its estimated fair value. The fair value was estimated using an income approach based on management’s forecast of future cash flows expected to be derived based on current sublease market rent. The impairment charge is included in general and administrative expenses in the condensed consolidated statements of income. |
Commitments and Contingencies_2
Commitments and Contingencies (Q3) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | ||
Commitments and Contingencies | 4. Commitments and Contingencies Litigation During the ordinary course of the Company’s business, it is subject to various claims and litigation. Management believes that the outcome of such claims or litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flow. In September 2019, the Company received a grand jury subpoena prepared by the United States Attorney’s Office for the Eastern District of California (“DOJ”). The subpoena demanded certain categories of information from the Company, some of which the Company has already provided. Management believes that the outcome of such inquiry will not have a material adverse impact of the Company’s financial position, results of operations, or cash flow. On August 4, 2021, the DOJ notified the Company that the DOJ was withdrawing the subpoena issued in September 2019, and that it had no present plan to exercise its discretion to proceed further in the matter. The DOJ cautioned that its decision not to proceed further did not constitute a grant of immunity, and that its plans could change in the future without notice. Beginning on January 27, 2021, purported stockholders of Silver Spike filed or threatened to file lawsuits in connection with the Merger, including two actions filed in the Supreme Court of the State of New York, captioned, Brait v. Silver Spike Acquisition Corp., et al., Index No. 650629/2021 (N.Y. Sup. Ct.), and Stout v. Silver Spike Acquisition Corp., et al., No. 650686/2021 (N.Y. Sup. Ct.). The operative complaints in the Brait and Stout actions allege that the Registration Statement issued in connection with the Merger omits material information related to the proposed transaction, and asserts claims for breach of fiduciary duty against certain of Silver Spike’s then officers and directors and for aiding and abetting breach of fiduciary duty against Silver Spike. The Stout complaint also asserts aiding and abetting claims against Legacy WMH and Merger Sub. Plaintiffs seek injunctive relief to enjoin the Merger and to require defendants to issue supplemental disclosures as outlined in the complaints or, in the event the transaction is consummated in the absence of such supplemental disclosures, an order rescinding the transaction and awarding rescissory damages. Plaintiffs also seek an award of attorneys’ fees and costs. The Company has received similar demands from other purported shareholders of Silver Spike, including one that attached a draft complaint, styled Fusco v. Silver Spike Acquisition Corp., et al., asserting similar fiduciary duty claims as in the Brait and Stout actions, as well as separate claims for violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934; the draft complaint seeks an injunction of the Merger, pending dissemination of supplemental disclosures, unspecified damages and attorneys’ fees and costs. The Brait action was voluntarily discontinued on June 29, 2021.The Company believes that these allegations are without merit. These matters are in the early stages and the Company is unable to reasonably determine the outcome or estimate the loss, if any, and as such, have not recorded a loss contingency. | 8. Commitments and contingencies Operating Leases The Company leases space in Irvine, California; Los Angeles, California; Denver, Colorado; New York, New York; Ontario, Canada; and Barcelona, Spain. Minimum lease obligations under noncancelable operating leases, which expire at various dates through the year ended 2031, are as follows: Years ending December 31, 2021 8,225,436 2022 9,605,487 2023 9,897,648 2024 9,405,482 2025 and beyond 35,561,951 $ 72,696,004 Rent expense for the years ended December 31, 2020, 2019 and 2018 amounted to $11.1 million, $5.6 million, and $4.1 million, respectively, and is included in general and administrative expense in the accompanying consolidated statements of operations. Litigation During the ordinary course of the Company’s business, it is subject to various claims and litigation. Management believes that the outcome of such claims or litigation will not have a material adverse effect on the Company’s financial position, results of operations or cash flow. In September 2019, the Company received a grand jury subpoena prepared by the United States Attorney’s Office for the Eastern District of California. The subpoena demanded certain categories of information from the Company, some of which the Company has already provided. Management believes that the outcome of such inquiry will not have a material adverse impact of the Company’s financial position, results of operations, or cash flow. |
Fair Value Measurements (Q3)
Fair Value Measurements (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands): Level September 30, 2021 December 31, 2020 Liabilities: Warrant liability – Public Warrants 1 $ 54,000 $ — Warrant liability – Private Placement Warrants 3 56,350 — Total warrant liability $ 110,350 $ — The following tables summarize the changes in the fair value of the warrant liabilities (in thousands): Three months ended September 30, 2021 Public Warrants Private Placement Warrants Warrant Liabilities Fair value, beginning of period $ 79,375 $ 76,812 $ 156,187 Change in valuation inputs or other assumptions (25,375 ) (20,462 ) (45,837 ) Fair value, end of period $ 54,000 $ 56,350 $ 110,350 Nine months ended September 30, 2021 Public Warrants Private Placement Warrants Warrant Liabilities Fair value, beginning of period $ — $ — $ — Warrant liability acquired 100,750 93,228 193,978 Change in valuation inputs or other assumptions (46,750 ) (36,878 ) (83,628 ) Fair value, end of period $ 54,000 $ 56,350 $ 110,350 The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates: September 30, 2021 June 16, 2021 Exercise price $ 11.50 $ 11.50 Stock price $ 14.50 $ 20.55 Volatility 60.0 % 60.0 % Term (years) 4.71 5.00 Risk-free interest rate 0.92 % 0.89 % Significant changes in the volatility would result in a significant lower or higher fair value measurement, respectively. The fair value of the Private Placement Warrants was $56.4 million and $93.2 million as of September 30, 2021 and June 16, 2020, respectively. The Warrants were accounted for as liabilities in accordance with ASC 815- Derivatives and Hedging There were no transfers in or out of Level 3 from other levels in the fair value hierarchy. |
Business Combination (Q3)
Business Combination (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Reverse Recapitalization [Abstract] | |
Business Combination | 6. Business Combination As further discussed in Note 1, on June 16, 2021, the Company consummated the Business Combination pursuant to the Merger Agreement. In connection with the Closing, the following occurred: ● Silver Spike was domesticated and continues as a Delaware corporation, changing its name to “WM Technology, Inc.” ● The Company was reorganized into an Up-C structure, in which substantially all of the assets and business of the Company are held by WMH LLC and continue to operate through WMH LLC and its subsidiaries, and WM Technology, Inc.’s material assets are the equity interests of WMH LLC indirectly held by it. ● The Company consummated the sale of 32,500,000 shares of Class A Common Stock for a purchase price of $10.00 per share (together, the “PIPE Financing”) pursuant to certain subscription agreements dated as of December 10, 2020, for an aggregate price of $325.0 million. ● The Company contributed approximately $80.3 million of cash to WMH LLC, representing (a) the net amount held in the Company’s trust account following the redemption of 10,012 shares of Class A Common Stock originally sold in the Silver Spike’s initial public offering, less (b) cash consideration of $455.2 million paid to Legacy WMH Class A equity holders, plus (c) $325.0 million in aggregate proceeds from the PIPE Financing, less (d) the aggregate amount of transaction expenses incurred by the parties to the Business Combination Agreement. ● The Company transferred $455.2 million to the Legacy WMH equity holders as cash consideration. ● The Legacy WMH equity holders retained an aggregate of 65,502,347 Class A Units and 25,896,042 Class P Units. ● The Company issued 65,502,347 shares of Class V Common Stock to Class A Unit holders, representing the same number of Class A Units retained by the Legacy WMH equity holders. ● The Company, the Holder Representative and the Class A Unit holders entered into the Tax Receivable Agreement, pursuant to which WM Technology, Inc. will pay to WMH LLC Class A equity holders 85% of the net income tax savings that WM Technology, Inc. actually realizes as a result of increases in the tax basis of WMH LLC’s assets as a result of the exchange of Units for cash in the Business Combination and future exchanges of the Class A Units for shares of Class A Common Stock or cash pursuant to the Exchange Agreement, and certain other tax attributes of WMH LLC and tax benefits related to the Tax Receivable Agreement, including tax benefits attributable to payments under the Tax Receivable Agreement. Concurrently with the closing of the Business Combination, the Unit holders entered into the Exchange Agreement. The terms of the Exchange Agreement, among other things, provide the Unit holders (or certain permitted transferees thereof) with the right from time to time at and after 180 days following the Business Combination to exchange their vested Paired Interests for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications, or Class P Units for shares of Class A Common Stock with a value equal to the value of such Class P Units less their participation threshold, or in each case, at the Company’s election, the cash equivalent of such shares of Class A Common Stock. The following table reconciles the elements of the Business Combination to the condensed consolidated statements of cash flows and the condensed consolidated statements of equity for the nine months ended September 30, 2021 (in thousands): Business Combination Cash - Silver Spike trust and cash, net of redemptions $ 254,203 Cash - PIPE Financing 325,000 Less: cash consideration paid to Legacy WMH equity holders (455,182 ) Less: transaction costs and advisory fees (44,052 ) Net proceeds from the Business Combination 79,969 Less: initial fair value of warrant liability recognized in the Business Combination (193,978 ) Add: transaction costs allocated to Warrants 5,547 Add: non-cash assets assumed from Silver Spike 1,053 Add: deferred tax asset 147,973 Less: tax receivable agreement liability (126,150 ) Net adjustment to total equity from the Business Combination $ (85,586 ) The number of shares of common stock issued immediately following the Closing: Number of Shares Common stock, outstanding prior to the Business Combination 24,998,575 Less: redemption of shares of Silver Spike’s Class A common stock 10,012 Shares of Silver Spike’s Class A common stock 24,988,563 Shares of Class A Common Stock held by Silver Spike’s Sponsor 6,250,000 Shares of Class A Common Stock issued in the PIPE Financing 32,500,000 Shares of Class A Common Stock issued in the Business Combination 63,738,563 Shares of Class V Common Stock issued to Legacy WMH equity holders 65,502,347 Total shares of common stock issued in the Business Combination 129,240,910 Net income for the period from June 16, 2021 (Closing Date) to September 30, 2021 was $58.7 million, which includes change in fair value of warrant liability of $83.6 million, stock-based compensation expense of $23.6 million and transaction costs related to the warrant liability of $5.5 million. The transaction costs related to the warrant liability is included in other expense, net on the accompanying condensed consolidated statements of income. |
Acquisitions (Q3)
Acquisitions (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | 7. Acquisitions Sprout On September 3, 2021, the Company acquired certain assets of the Sprout business (“Sprout”), a leading, cloud-based customer relationship management (“CRM”) and marketing platform for the cannabis industry, for total consideration of approximately $31.2 million. The Company accounted for the Sprout acquisition as an acquisition of a business under ASC 805- Business Combinations The acquired assets of Sprout were recorded at their preliminary acquisition date fair values. The purchase price allocations are subject to change as the Company continues to gather information relevant to its determination of the fair value of the assets and liabilities acquired primarily related to, but not limited to, intangible assets. Any adjustments to the purchase price allocations will be made as soon as practicable but no later than one year from the acquisition date. The following table summarizes the components of consideration and the preliminary estimated fair value of assets acquired (in thousands): Consideration Transferred: Cash consideration $ 12,000 Share consideration (1) 19,186 Total consideration $ 31,186 Estimated Assets Acquired: Software technology $ 1,976 Trade name 399 Customer relationships 1,762 Goodwill 27,049 Total asset acquired $ 31,186 (1) The fair value of share consideration issued in connection with the Spout acquisition was calculated based on 1,244,258 shares of Class A common stock issued multiplied by the share price on the closing date of $15.42. The excess of the purchase price over the estimated fair values of the net assets acquired, including identifiable intangible assets, is recorded as goodwill. Goodwill is primarily attributable to the expected synergies from combining operations. Goodwill recognized was allocated to the Company’s one operating segment and is generally deductible for tax purposes. The fair values of the trade name intangible assets were determined using an “income approach”, specifically, the relief-from royalty approach, which is a commonly accepted valuation approach. This approach is based on the assumption that in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset. Owning that intangible asset means that the underlying entity wouldn’t have to pay for the privilege of deploying that asset. Therefore, a portion of Sprout’s earnings, equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to the firm’s ownership. The fair value of the software technology intangible asset was also determined using an “income approach”, specifically a multi-period excess earnings approach, which is a commonly accepted valuation approach. Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the future, as existing customers are a “wasting” asset and are expected to decline over time. The fair value of the customer relationships was determined using an “income approach”, specifically, the With-and-Without method, which is a commonly accepted valuation approach. This method estimates the value of customer-related assets by quantifying the impact on cash flows under a scenario in which the customer-related assets must be replaced and assuming all of the existing assets are in place except the customer-related assets. Essentially, it estimates the intangible asset’s value by calculating the difference between the two discounted cash-flow models. One that represents the status quo for the business enterprise with the asset in place and the second that represents the business enterprise with everything in place besides the customer-related asset. The projected cash flow period is the time-period it takes to build back up to that status quo. The difference between the two cash flows represents the calculated value of the customer-related asset. During the three and nine months ended September 30, 2021, the Company incurred transaction expenses associated with the Sprout acquisition of $0.8 million, which is included in general and administrative expenses in the condensed consolidated statements of income. The revenue and operating loss from Sprout included the Company’s condensed consolidated statements of income for the period from September 3, 2021 (acquisition date) through September 30, 2021 were not material. Pro forma revenue and earnings amounts on a combined basis have not been presented as they are not material to the Company’s historical pre-acquisition financials. Transport Logistics Holding On September 29, 2021, the Company acquired all of the equity interests of Transport Logistics Holding Company, LLC (“TLH”), a logistics platform that enables the compliant delivery of cannabis, for total consideration of approximately $15.1 million. The Company accounted for the TLH acquisition as an acquisition of a business under ASC 805. The acquired assets of TLH were recorded at their preliminary acquisition date fair values. The purchase price allocations are subject to change as the Company continues to gather information relevant to its determination of the fair value of the assets and liabilities acquired primarily related to, but not limited to, intangible assets. Any adjustments to the purchase price allocations will be made as soon as practicable but no later than one year from the acquisition date. The following table summarizes the components of consideration and the preliminary estimated fair value of assets acquired (in thousands): Consideration Transferred: Cash consideration (1) $ 5,000 Share consideration (2) 10,126 Total consideration $ 15,126 Estimated Assets Acquired: Software technology $ 249 Trade name 59 Customer relationships 170 Goodwill 14,648 Total asset acquired $ 15,126 (1) Includes holdback of $1.0 million recorded within other current liabilities on the Company’s condensed consolidated balance sheets. (2) The fair value of share consideration issued in connection with the TLH acquisition was calculated based on 694,540 shares of Class A common stock issued multiplied by the share price on the closing date of $14.58. The excess of the purchase price over the estimated fair values of the net assets acquired, including identifiable intangible assets, is recorded as goodwill. Goodwill is primarily attributable to the expected synergies from combining operations. Goodwill recognized was allocated to the Company’s one operating segment and is generally deductible for tax purposes. The fair values of the trade name intangible assets were determined using an “income approach”, specifically, the relief-from royalty approach, which is a commonly accepted valuation approach. This approach is based on the assumption that in lieu of ownership, a firm would be willing to pay a royalty in order to exploit the related benefits of this asset. Owning that intangible asset means that the underlying entity wouldn’t have to pay for the privilege of deploying that asset. Therefore, a portion of TLH’s earnings, equal to the after-tax royalty that would have been paid for the use of the asset, can be attributed to the firm’s ownership. The fair value of the software technology intangible asset was also determined using an “income approach”, specifically a multi-period excess earnings approach, which is a commonly accepted valuation approach. Under this approach, the net earnings attributable to the asset or liability being measured are isolated using the discounted projected net cash flows. These projected cash flows are isolated from the projected cash flows of the combined asset group over the remaining economic life of the intangible asset or liability being measured. Both the amount and the duration of the cash flows are considered from a market participant perspective. Where appropriate, the net cash flows were adjusted to reflect the potential attrition of existing customers in the future, as existing customers are a “wasting” asset and are expected to decline over time. The fair value of the customer relationships was determined using an “income approach”, specifically, the With-and-Without method, which is a commonly accepted valuation approach. This method estimates the value of customer-related assets by quantifying the impact on cash flows under a scenario in which the customer-related assets must be replaced and assuming all of the existing assets are in place except the customer-related assets. Essentially, it estimates the intangible asset’s value by calculating the difference between the two discounted cash-flow models. One that represents the status quo for the business enterprise with the asset in place and the second that represents the business enterprise with everything in place besides the customer-related asset. The projected cash flow period is the time-period it takes to build back up to that status quo. The difference between the two cash flows represents the calculated value of the customer-related asset. During the three and nine months ended September 30, 2021, the Company incurred transaction expenses associated with the TLH acquisition of $0.6 million, which is included in general and administrative expenses in the condensed consolidated statements of income The revenue and operating loss from TLH included the Company’s condensed consolidated statements of income for the period from September 29, 2021 (acquisition date) through September 30, 2021 were not material. Pro forma revenue and earnings amounts on a combined basis have not been presented as they are not material to the Company’s historical pre-acquisition financials. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 8. Goodwill and Intangible Assets A summary of changes in goodwill for the nine months ended September 30, 2021 is as follows (in thousands): Goodwill Balance at December 31, 2020 $ 3,961 Acquisition of Sprout 27,049 Acquisition of TLH 14,648 Balance at September 30, 2021 $ 45,658 Intangible assets consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Weighted Average Amortization Period (Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Trade and domain names 14.3 $ 7,713 $ (3,917 ) $ 3,796 Software technology 7.7 5,694 (2,976 ) 2,718 Customer relationships 3.4 1,932 — 1,932 Total intangible assets 10.5 $ 15,339 $ (6,893 ) $ 8,446 December 31, 2020 Weighted Average Amortization Period (Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Trade and domain names 15.0 $ 7,255 $ (3,556 ) $ 3,699 Software technology 9.4 3,469 (2,663 ) 806 Total intangible assets 13.2 $ 10,724 $ (6,219 ) $ 4,505 Amortization expense for intangible assets was $0.2 million during each of the three months ended September 30, 2021 and 2020, and $0.7 millions during each of the nine months ended September 30, 2021 and 2020. The estimated future amortization expense of intangible assets as of September 30, 2021 is as follows (in thousands): Remaining period in 2021 (three months) $ 611 Year ended December 31, 2022 2,057 Year ended December 31, 2023 1,659 Year ended December 31, 2024 1,442 Year ended December 31, 2025 1,017 Thereafter 1,660 $ 8,446 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | 9. Accounts Payable and Accrued Expenses Accounts payable and accrued liabilities as of September 30, 2021 and December 31, 2020 consisted of the following (in thousands): September 30, 2021 December 31, 2020 Accounts payable $ 6,362 $ 2,244 Accrued employee expenses 6,500 6,586 Other accrued liabilities 11,019 3,821 $ 23,881 $ 12,651 |
Warrant Liability (Q3)
Warrant Liability (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Warrant Liability | 10. Warrant Liability At September 30, 2021, there were 12,499,933 Public Warrants outstanding and 7,000,000 Private Placement Warrants outstanding. As part of Silver Spike’s initial public offering, 12,500,000 Public Warrants were sold. The Public Warrants entitle the holder thereof to purchase one share of Class A Common Stock at a price of $11.50 per share, subject to adjustments. The Public Warrants may be exercised only for a whole number of shares of Class A Common Stock. No fractional shares will be issued upon exercise of the warrants. The Public Warrants will expire at 5:00 p.m. New York City time on June 16, 2026, or earlier upon redemption or liquidation. The Public Warrants are listed on the NYSE under the symbol “MAPSW.” The Company may redeem the Public Warrants starting July 16, 2021, in whole and not in part, at a price of $0.01 per Public Warrant, upon not less than 30 days’ prior written notice of redemption to each holder of Public Warrants, and if, and only if, the reported last sales price of the Company’s Class A Common Stock equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, rights issuances, subdivisions, reorganizations, recapitalization and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the holders of Public Warrants. Simultaneously with Silver Spike’s initial public offering, Silver Spike consummated a private placement of 7,000,000 Private Placement Warrants with Silver Spike’s sponsor (“Silver Spike Sponsor”). Each Private Placement Warrant is exercisable for one share of Class A Common Stock at a price of $11.50 per share, subject to adjustment. The Private Placement Warrants (including the shares of Class A Common Stock issuable upon exercise of the Private Placement Warrants) are not transferable, assignable or salable until 30 days after the completion of the Business Combination, subject to certain exceptions, and they are nonredeemable as long as they are held by Silver Spike Sponsor or its permitted transferees. Silver Spike Sponsor, as well as its permitted transferees, has the option to exercise the Private Placement Warrants on a cashless basis and will have certain registration rights related to such Private Placement Warrants. Otherwise, the Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants. If the Private Placement Warrants are held by holders other than Silver Spike Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the Public Warrants. The Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of Class A Common Stock issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the Public Warrants will not be adjusted for issuances of shares of Class A Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. The Private Placement Warrants are identical to the Public Warrants underlying the units sold in the initial public offering, except that the Private Placement Warrants and the Class A Common Stock issuable upon the exercise of the Private Placement Warrants were not transferable, assignable or salable until 30 days after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company concluded the Public Warrants and Private Placement Warrants, or the Warrants, meet the definition of a derivative under ASC 815- Derivatives and Hedging |
Equity (Q3)
Equity (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Equity | 11. Equity Class A Common Stock Voting Rights Each holder of the shares of Class A Common Stock is entitled to one vote for each share of Class A Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote. The holders of the shares of Class A Common Stock do not have cumulative voting rights in the election of directors. Generally, all matters to be voted on by stockholders must be approved by a majority (or, in the case of election of directors, by a plurality) of the votes entitled to be cast by all stockholders present in person or represented by proxy, voting together as a single class. Notwithstanding the foregoing, the holders of the outstanding shares of Class A Common Stock are entitled to vote separately upon any amendment to the Company’s certificate of incorporation (including by merger, consolidation, reorganization or similar event) that would alter or change the powers, preferences or special rights of such class of common stock in a manner that is disproportionately adverse as compared to the Class V Common Stock. Dividend Rights Subject to preferences that may be applicable to any outstanding preferred stock, the holders of shares of Class A Common Stock are entitled to receive ratably such dividends, if any, as may be declared from time to time by the Company’s board of directors out of funds legally available therefor. Rights upon Liquidation, Dissolution and Winding-Up In the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, the holders of the shares of Class A Common Stock are entitled to share ratably in all assets remaining after payment of the Company’s debts and other liabilities, subject to prior distribution rights of preferred stock or any class or series of stock having a preference over the shares of Class A Common Stock, then outstanding, if any. Preemptive or Other Rights The holders of shares of Class A Common Stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions applicable to the shares of Class A Common Stock. The rights, preferences and privileges of holders of shares of Class A Common Stock will be subject to those of the holders of any shares of the preferred stock that the Company may issue in the future. Class V Common Stock Voting Rights Each holder of the shares of Class V Common Stock is entitled to one vote for each share of Class V Common Stock held of record by such holder on all matters on which stockholders generally are entitled to vote. The holders of shares of Class V Common Stock do not have cumulative voting rights in the election of directors. Generally, all matters to be voted on by stockholders must be approved by a majority (or, in the case of election of directors, by a plurality) of the votes entitled to be cast by all stockholders present in person or represented by proxy, voting together as a single class. Notwithstanding the foregoing, the holders of the outstanding shares of Class V Common Stock are entitled to vote separately upon any amendment to the Company’s certificate of incorporation (including by merger, consolidation, reorganization or similar event) that would alter or change the powers, preferences or special rights of such class of common stock in a manner that is disproportionately adverse as compared to the Class A Common Stock. Dividend Rights The holders of the Class V Common Stock will not participate in any dividends declared by the Company’s board of directors. Rights upon Liquidation, Dissolution and Winding-Up In the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, the holders of Class V Common Stock are not entitled to receive any of the Company’s assets. Preemptive or Other Rights The holders of shares of Class V Common Stock do not have preemptive, subscription, redemption or conversion rights. There will be no redemption or sinking fund provisions applicable to the Class V Common Stock. Issuance and Retirement of Class V Common Stock In the event that any outstanding share of Class V Common Stock ceases to be held directly or indirectly by a holder of Class A Units, such share will automatically be transferred to us for no consideration and thereupon will be retired. The Company will not issue additional shares of Class V Common Stock other than in connection with the valid issuance or transfer of Units in accordance with the governing documents of WMH LLC. Preferred Stock Pursuant to the amended and restated certificate of incorporation in effect as of June 15, 2021, the Company was authorized to issue 75,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2021, there were no shares of preferred stock issued or outstanding. Noncontrolling Interests The noncontrolling interest represents the Units held by holders other than the Company. As of September 30, 2021, the noncontrolling interests owned 56.6% of the Units outstanding. The noncontrolling interests’ ownership percentage can fluctuate over time, including as the WMH LLC equity holders elect to exchange Units for Class A Common Stock. The Company has consolidated the financial position and results of operations of WMH LLC and reflected the proportionate interest held by the WMH LLC Unit equity holders as noncontrolling interests. Net income for the period prior to the Business Combination from January 1, 2021 to June 15, 2021 is allocated to net income attributable to noncontrolling interests on the accompanying condensed consolidated statements of income for the nine months ended September 30, 2021. |
Stock-based Compensation (Q3)
Stock-based Compensation (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-based Compensation | 12. Stock-based Compensation WM Holding Company, LLC Equity Incentive Plan The Company has accounted for the issuance of Class A-3 and Class B Units issued under WM Holding Company, LLC’s Equity Incentive Plan in accordance with ASC 718 - Stock Based Compensation In connection with the Business Combination, each of the Class A-3 Units outstanding prior to the Business Combination were cancelled, and the holder thereof received a number of Class A units representing limited liability company interests of WMH LLC (the “Class A Units”) and an equivalent number of shares of Class V Common Stock, par value $0.0001 per share (together with the Class A Units, the “Paired Interests”), and each of the Class B Units outstanding prior to the Business Combination were cancelled and holders thereof received a number of Class P units representing limited liability company interests of WMH LLC (the “Class P Units” and together with the Class A Units, the “Units”), each in accordance with the Merger Agreement. Concurrently with the closing of the Business Combination, the Unit holders entered into an exchange agreement (the “Exchange Agreement”). The terms of the Exchange Agreement, among other things, provide the Unit holders (or certain permitted transferees thereof) with the right from time to time at and after 180 days following the Business Combination to exchange their vested Paired Interests for shares of Class A Common Stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications, or Class P Units for shares of Class A Common Stock with a value equal to the value of such Class P Units less their participation threshold, or in each case, at the Company’s election, the cash equivalent of such shares of Class A Common Stock. A summary of the Class P Unit activity for the nine months ended September 30, 2021 is as follows: Number of Units Outstanding Class A-3 and Class B Units, December 31, 2020 274,816 Repurchases (8,279 ) Cancellations (4,288 ) Outstanding Class A-3 and Class B Units, June 15, 2021 (Pre-Business Combination) 262,249 Class A-3 Units outstanding exchanged for Class A Units in connection with the Business Combination (53,333 ) Recapitalization in connection with the Business Combination 25,687,126 Outstanding Class P Units, June 16, 2021 25,896,042 Cancellations (216,920 ) Outstanding Class P Units, September 30, 2021 25,679,122 Vested, September 30, 2021 23,197,454 As of September 30, 2021, unrecognized stock-based compensation expense for non-vested Class P Units was $5.0 million, which is expected to be recognized over a weighted-average period of 2.2 years. For the three and nine months ended September 30, 2021, the Company recorded stock-based compensation expense for the Class P Units of $0.7 million and $20.1 million, respectively. Due to the Business Combination completed in the second quarter of 2021, certain limitations on exercisability related to the Company’s Class P equity awards issued to employees and consultants were removed and as a result the Company recognized the life-to-date expense on units vested through the Business Combination date on those equity awards. The stock-based compensation expense recognized during the nine months ended September 30, 2021 also included a one-time incremental expense of $4.1 million recognized during the second quarter related to an award modification as a result of an advisory agreement entered into with a former executive. WM Technology, Inc. Equity Incentive Plan In connection with the Business Combination, the Company adopted the WM Technology, Inc. 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan permits the granting of incentive stock options to employees and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards and other forms of stock awards to employees, directors and consultants. As of September 30, 2021, 19,209,986 shares of Class A Common Stock are authorized for issuance pursuant to awards under the 2021 Plan. The number of shares of Class A Common stock reserved for issuance under the 2021 Plan will automatically increase on January 1 of each year for a period of ten years commencing on January 1, 2022 and ending on (and including) January 1, 2031, in an amount equal to five percent (5%) of the total number of shares of the Company’s capital stock outstanding on December 31 of the preceding year; provided, however that the Board may act prior to January 1st of a given year to provide that the increase for such year will be a lesser number of shares of Common Stock. As of September 30, 2021, 15,108,441 shares of Class A Common Stock are available for future issuance. A summary of the restricted stock unit (“RSU”) activity for the nine months ended September 30, 2021 is as follows: Number of RSUs Weighted-average Grant Date Fair Value Non-vested at December 31, 2020 — $ — Granted 4,112,855 $ 13.66 Vested (242,600 ) $ 13.70 Forfeited (11,310 ) $ 13.70 Non-vested at September 30, 2021 3,858,945 $ 13.66 As of September 30, 2021, unrecognized stock-based compensation expense for non-vested RSUs was $51.9 million, which is expected to be recognized over a weighted-average period of 3.8 years. For the three and nine months ended September 30, 2021, the Company recorded stock-based compensation expense for the RSUs of $3.5 million. The Company recorded stock-based compensation cost related to the Class P Units and RSUs in the following expense categories on the accompanying condensed consolidated statements of income (in thousands): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Sales and marketing $ 689 $ 4,515 Product development 1,865 3,859 General and administrative 1,638 15,251 Total stock-based compensation expense 4,192 23,625 Amount capitalized to software development 695 695 Total stock-based compensation cost $ 4,887 $ 24,320 |
Earnings Per Share (Q3)
Earnings Per Share (Q3) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Basic income (loss) per share of Class A Common Stock is computed by dividing net earnings (loss) attributable to the Company by the weighted-average number of shares of Class A Common Stock outstanding during the period. Diluted income (loss) per share of Class A Common Stock is computed by dividing net income (loss) attributable to the Company, adjusted for the assumed exchange of all potentially dilutive securities, by the weighted-average number of shares of Class A Common Stock outstanding adjusted to give effect to potentially dilutive shares. Prior to the Business Combination, the membership structure of WMH included units which had profit interests. The Company analyzed the calculation of net earnings (loss) per unit for periods prior to the Business Combination and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. Therefore, net earnings per share information has not been presented for periods prior to the Business Combination on June 16, 2021. The basic and diluted income (loss) per share for the nine months ended September 30, 2021 represent the period from June 16, 2021 (Closing Date) to September 30, 2021. The computation of income (loss) per share attributable to WM Technology, Inc. and weighted-average shares of the Company’s Class A Common Stock outstanding are as follows for the three months ended September 30, 2021 and for period from June 16, 2021 (Closing Date) to September 30, 2021 (amounts in thousands, except for share and per share amounts): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Numerator: Net income $ 49,205 $ 73,773 Less: net income attributable to WMH LLC prior to the Business Combination — 15,078 Less: net income attributable to noncontrolling interests after the Business Combination 28,370 33,597 Net income attributable to WM Technology, Inc. - Basic 20,835 25,098 Effect of dilutive securities: Less: fair value change of Public and Private Placement Warrants, net of amounts attributable to noncontrolling interests 19,618 35,679 Net income (loss) attributable to WM Technology, Inc. - Diluted $ 1,217 $ (10,581 ) Denominator: Weighted average Class A Common Stock outstanding - Basic 64,216,732 64,149,699 Weighted average effect of dilutive securities: Public Warrants 1 2,558,783 3,718,232 Private Placement Warrants 1 1,432,918 2,082,210 Restricted stock units 1 95,939 — Weighted average Class A Common Stock outstanding - Diluted 68,304,372 69,950,141 Net income (loss) per share of Class A Common Stock: Net income per share of Class A Common Stock - Basic $ 0.32 $ 0.39 Net income (loss) per share of Class A Common Stock - Diluted $ 0.02 $ (0.15 ) 1 Calculated using the treasury stock method. Shares of the Class V Common Stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class V Common Stock under the two-class method has not been presented. The Company excluded the following securities from its computation of diluted shares outstanding, as their effect would have been anti-dilutive: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Class A Units 65,502,347 65,502,347 Class P Units 25,679,122 25,679,122 Restricted stock units — 3,858,945 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (FY) (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of WM Technology, Inc. and WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.LU., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, WM Museum, LLC, WM Teal, LLC, Weedmaps Germany GmbH, Transport Logistics Holding Company, LLC and WM Loyalty, LLC. All significant intercompany balance and transactions have been eliminated upon consolidation. | Principles of Consolidation The consolidated financial statements include the accounts of WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.L.U., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, Weedmaps Germany GmbH, WM Teal, LLC, WM Museum, LLC, Weedmaps Artist Management, LLC, Ghost Gaming Holdings, LLC, WMBP Investment, LLC, and WMG Pharma GmbH. All significant intercompany balance and transactions have been eliminated upon consolidation. |
Discontinued Operations | Discontinued Operations Effective April 30, 2018, the Company sold 100% of the equity interests in WMG Pharma GmbH to an entity owned by its founders for $13,490 and on May 31, 2018, the Company divested its equity interests in Ghost Gaming Holdings, LLC, Weedmaps Artist Management, LLC, and WMBP Investment, LLC (collectively, “Divested Entities”) to certain of its members. The fair value based on a valuation report for the Divested Entities was $1,495,000. No gain or loss was recorded due to the related party nature of the divestiture; instead the divestiture was recorded as a deemed distribution in member’s equity. The activities of the Divested Entities were included in the consolidated financial statements through the date of the divestiture. As a result of the Company’s decision to divest its interest in Divested Entities, the Company has reclassified and presented all related historical financial information as it relates to the Divested Entities as “discontinued operations” in the accompanying consolidated statements of operations as of and for the year ended December 31, 2018. In addition, all related activities have been excluded from footnote disclosures unless specifically referenced. These reclassifications have no effect on previously reported net income. | |
Foreign Currency | Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the three and nine months ended September 30, 2021 and 2020. | Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the years ended December 31, 2020, 2019 and 2018. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, leases, valuation of goodwill and other intangible assets, valuation of warrant liability, deferred tax asset and tax receivable agreement liability, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, valuation of goodwill and other intangible assets, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. |
Risks and Uncertainties | Risks and Uncertainties The Company operates in a relatively new industry where laws and regulations vary significantly by jurisdiction. Currently, several states permit medical or recreational use of cannabis; however, the use of cannabis is prohibited on a federal level in the United States. If any of the states that permit use of cannabis were to change their laws or the federal government was to actively enforce such prohibition, the Company’s business could be adversely affected. In addition, the Company’s ability to grow and meet its operating objectives depends largely on the continued legalization of cannabis on a widespread basis. There can be no assurance that such legalization will occur on a timely basis, or at all. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2020, 2019 and 2018, the Company did not have any cash equivalents. | |
Accounts Receivable | Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed on a monthly basis and the Company reserves for all balances outstanding in excess of ninety days. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. The Company recorded a provision for doubtful accounts of $3.0 million and $0.9 million as of September 30, 2021 and December 31, 2020, respectively. | Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed monthly and past due balances are reviewed individually for collectability. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. As of December 31, 2020, and 2019, the Company recorded an allowance for bad debt of $857,382 and $913,715, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at historical cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, which range from three Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred. Costs incurred for enhancements that are expected to result in additional material functionality are capitalized and amortized over the estimated useful life of the upgrades. Upon sale or disposition, the cost and related accumulated depreciation and amortization are removed from the accounts, and any gain or loss is included in the Company’s results from operations. | |
Goodwill | Goodwill Goodwill is the excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed. For impairment purposes, the Company assesses qualitative factors to determine if it is necessary to perform the two-step quantitative goodwill impairment test. The Company assesses qualitative factors to determine if its sole reporting unit’s fair value is more likely than not to exceed its carrying value, including goodwill. In the event the Company determines that it is more likely than not that its reporting unit’s fair value is less than its carrying amount, quantitative testing is performed comparing recorded values to estimated fair values. Quantitative testing compares the fair value of the reporting unit to its book value, including goodwill. If the book value exceeds the fair value, then the Company would calculate the potential impairment loss by comparing the implied fair value of goodwill with the book value. If the implied fair value of goodwill is less than the book value, then an impairment charge would be recorded. For the years ended December 31, 2020 and 2019, there were no impairment of goodwill. The Company has elected not to amortize goodwill. | |
Intangible Assets | Intangible Assets The Company’s intangible assets consist of trade and domain names, and software technology which are amortized using the straight-line method over 5 to 15 years. | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted cash flows attributable to such assets including any cash flows upon their eventual disposition to their carrying value. If the carrying value of the assets exceeds the forecasted undiscounted cash flows, then the assets are written down to their estimated fair value. For the years ended December 31, 2020 and 2019, there were no such impairments. | |
Revenue Recognition | Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and the Company’s SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing and software subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Starting on January 1, 2021, the Company eliminated the technology services fee charge related to the Company’s orders functionality. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $5.3 million was fully recognized in the first quarter of fiscal year 2021, and the deferred revenue balance as of September 30, 2021 of $7.8 million is expected to be fully recognized within the next twelve months. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenues recognized over time (1) $ 50,884 $ 44,459 $ 138,969 $ 112,615 Revenues recognized at a point in time (2) — 2,046 — 4,855 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 _________________ (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 U.S. revenues $ 50,884 $ 34,877 $ 138,969 $ 91,275 Foreign revenues — 11,628 — 26,195 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 All foreign revenues were generated in Canada. During the second half of fiscal 2020, the Company discontinued its services to Canada-based retail operator clients who failed to provide valid license information, similar to the transition the Company implemented in California at the end of fiscal 2019. Following the completion of the discontinuation of such services, all revenue has been generated in the United States. | Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and our SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $4.3 million was fully recognized in fiscal year 2020, and the current year deferred revenue balance of $5.3 million is expected to be recognized in 2021, which is expected to be within the next year. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Revenues recognized over time (1) $ 101,402,007 $ 143,489,929 $ 155,362,875 Revenues recognized at a point in time (2) — 741,550 6,427,887 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 U.S. revenues $ 100,670,847 $ 132,076,823 $ 130,373,022 Foreign revenues 731,160 12,154,656 31,417,740 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 All foreign revenues were generated in Canada. |
Income Taxes | Income Taxes The Company Income Taxes. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision, and estimate of the Company’s annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), revaluations of the warrant liability, changes in flow-through income not subject to tax and tax law developments. As a result of the Business Combination, WM Technology, Inc. became the sole managing member of WMH LLC, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, WMH LLC is not subject to U.S. federal and certain state and local income taxes. Accordingly, no provision for U.S. federal and state income taxes has been recorded in the financial statements for the period of January 1 to June 16, 2021 as this period was prior to the Business Combination. Any taxable income or loss generated by WMH LLC is passed through to and included in the taxable income or loss of its members, including WM Technology, Inc. following the Business Combination, on a pro rata basis. WM Technology, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income of WMH LLC following the Business Combination. The Company is also subject to taxes in foreign jurisdictions. For the three and nine months ended September 30, 2021, the Company recorded a provision for income taxes of $0.4 million and $0.2 million, respectively. The provision for income taxes during the first quarter of 2021 was the result of an audit performed by the Canada Revenue Agency on prior years income taxes paid by the Company’s subsidiary, WM Canada Holdings, Inc. The effective tax rates differ from the federal statutory rate of 21% primarily due to the impact of warrant valuations, non-controlling interests represented by the portion of the flow-through income not subject to tax, permanent stock based compensation, and state taxes. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company does not believe it has any uncertain income tax positions that are more-likely-than-not to materially affect its condensed consolidated financial statements. | Income Taxes Other than for the Company’s foreign subsidiaries that are subject to their jurisdictions’ income tax laws, the remaining subsidiaries, as well as the holding entity, are not subject to income tax, with the members of the Company including their respective share of the Company’s profits and losses in their individual income tax returns. For the year ended December 31, 2019, the Company recorded a provision for income taxes of approximately $1.3 million, related to estimated taxable income from operations of WM Canada Holdings, Inc., in the accompanying statement of operations. No provision for income taxes was recorded for the year ended December 31, 2020 and 2018. The components of income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows: 2018 2019 2020 United States $ 12,010,276 $ (4,152,308 ) $ 38,877,652 Foreign 669,235 5,097,668 (47,659 ) Net income (loss) before provision for income taxes $ 12,679,511 $ 945,360 $ 38,829,993 While electing Limited Liability Company status, the Company does not believe it has any uncertain income tax positions that are more likely that not to materially affect its consolidated financial statements. The Company’s federal and state income tax returns remain open to agency examination for the standard statutory length of time after filing. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. | Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. |
Fair Value Measurements | Fair Value Measurements The Company follows the guidance in ASC 820 - Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: ● 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 the Company assessment of the assumptions that market participants would use in pricing the asset or liability. | Fair Value Measurements At December 31, 2020 and 2019, the Company did not have any assets or liabilities measured at fair value on a recurring or nonrecurring basis. |
Cost of Revenue | Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. | Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. |
Product Development Costs | Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. | Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. |
Advertising | Advertising The Company expenses the cost of advertising in the period incurred. Advertising expense totaled $4.1 million and $2.4 million for the three months ended September 30, 2021 and 2020, respectively, and $11.9 million and $6.7 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in sales and marketing expense in the accompanying condensed consolidated statements of income. | Advertising The Company expenses the cost of all advertising in the period incurred. Advertising expense totaled $10.6 million, $20.6 million, and $6.6 million, for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in sales and marketing expense in the accompanying consolidated statements of operations. |
Other expense, net | Other expense, net The company records interest expense, financing fees, political contributions, legal settlements, gain (loss) on currency exchange, and other tax related expenses in other expenses in the accompanying statement of operations. Total political contributions for the year ended December 31, 2020, 2019 and 2018 was $773,370, $915,250, and $795,275, respectively. The Company expenses the cost of all political contributions in the period incurred. Financing fees totaled $807,474, $3,540,636, and $286,228 for the years ended December 31, 2020, 2019 and 2018, respectively. The large increase in financing fees in 2019 related to legal and other consulting fees the Company incurred while working on multiple financing projects. The Company also incurred $610,539 in sales tax paid by one of the Company’s Canadian subsidiaries in 2019 due to certain sales taxes not collected from customers in the foreign jurisdiction and ultimately paid by the Company. No such cost was incurred in 2020 and 2018. The Company also recorded a gain (loss) from currency exchange of ($729,505), ($34,705) and $7,455 for fiscal years ended December 31, 2020, 2019 and 2018 related to revenue generated in Canada. | |
Stock-Based Compensation | Stock-Based Compensation The Company measures fair value of employee stock-based compensation awards on the date of grant and allocates the related expense over the requisite service period. The fair value of the Class P Units are measured using the Black-Scholes-Merton valuation model. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. | Stock-Based Compensation The Company measures all employee stock-based compensation awards on the date of grant using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. |
Segment Reporting | Segment Reporting The Company and its subsidiaries operate in one business segment. | Segment Reporting The Company and its subsidiaries operate in one business segment. |
Earnings Per Unit | Earnings Per Share Basic income (loss) per share is computed by dividing net income (loss) attributable to WM Technology, Inc. by the weighted-average number of shares of Class A Common Stock outstanding during the period. Diluted income (loss) per share is computed giving effect to all potential weighted-average dilutive shares for the period. The dilutive effect of outstanding awards or financial instruments, if any, is reflected in diluted income (loss) per share by application of the treasury stock method or if-converted method, as applicable. Prior to the Business Combination, the membership structure of Legacy WMH included units which had profit interests. The Company analyzed the calculation of earnings per unit for periods prior to the Business Combination and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. As a result, earnings per share information has not been presented for periods prior to the Business Combination on June 16, 2021. The basic and diluted income (loss) per share for the nine months ended September 30, 2021 represent the period from June 16, 2021 (Closing Date) to September 30, 2021. | Earnings Per Unit Earnings per unit amounts are computed independently for earnings per unit from continuing operations, loss per unit from discontinued operations and net earnings per unit. As a result, the sum of per unit amounts from continuing operations and discontinued operations may not equal the total per unit amounts for net earnings. All Class A Units, including Class A-1, Class A-2, and Class A-3 Units, have been included in the calculations for earnings per unit as of December 31, 2020, 2019 and 2018 primarily due to their voting and distribution rights. Since Class B Units had no voting, distribution, or dividend rights and were subject to exercise limitations, such units have been excluded from the calculations for earnings per unit as of December 31, 2020, 2019 and 2018. No other dilutive instruments were outstanding as of December 31, 2020, 2019, and 2018. See Note 8 for further discussion. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The Company adopted ASC 842 as of January 1, 2021, using the modified retrospective transition approach by recording an ROU asset and lease liability for operating leases of $43.3 million and $48.4 million, respectively, at that date; the Company did not have any finance lease assets and liabilities upon adoption or any arrangements where it acts as a lessor. Adoption of ASC 842 did not have an effect on the Company’s retained earnings. The Company availed itself of the practical expedients provided under ASC 842 regarding identification of leases, lease classification, indirect costs, and the combination of lease and non-lease components for all classes of assets. The Company continues to account for leases in the prior period financial statements under ASC 840. | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The new guidance is effective for private companies for annual periods beginning after December 15, 2020, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has multiple long-term operating leases and is currently in the process of evaluating the impact of the new accounting guidance on its consolidated balance sheets, consolidated statement of income and cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. The Company used the modified retrospective method of adoption, which would require the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2019. Comparative prior year periods would not be adjusted. The new accounting standard was applied to all contracts at the date of initial application. There was no cumulative effect of applying the new revenue standard to contracts executed in prior periods. As such, the adoption of the new accounting standard had no impact on the balance sheet and statement of operations in the current or prior periods. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The ASU also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The guidance is effective for reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Q3) (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and Article 10-1 of Regulation S-X. Accordingly, certain information and footnotes required by GAAP in annual financial statements have been omitted or condensed and these interim financial statements should be read in conjunction with the Company’s audited financial statements and accompanying notes included in the Company’s Registration Statement on Form S-1 filed with the SEC on July 8, 2021. The condensed financial statements of the Company include all adjustments of a normal recurring nature which, in the opinion of management, are necessary for a fair statement of the Company’s financial position as of September 30, 2021, and results of its operations and its cash flows for the interim periods presented. The results of operations for the nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the entire year. There have been no significant changes in the Company’s accounting policies from those described in the Company’s audited consolidated financial statements and the related notes to those statements, other than the adoption of the lease accounting guidance. Pursuant to the Merger Agreement, the Business Combination was accounted for as a reverse recapitalization in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, Silver Spike was treated as the acquired company and Legacy WMH was treated as the acquirer for financial statement reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Legacy WMH issuing stock for the net assets of Silver Spike, accompanied by a recapitalization. Legacy WMH was determined to be the accounting acquirer based on evaluation of the following facts and circumstances: ● Legacy WMH Class A Unit holders, through their ownership of the Class V Common Stock, have the greatest voting interest in the Company with over 50% of the voting interest; ● Legacy WMH selected the majority of the new board of directors of the Company; ● Legacy WMH senior management is the senior management of the Company; and ● Legacy WMH is the larger entity based on historical operating activity and has the larger employee base. Thus, the financial statements included in this quarterly report reflect (i) the historical operating results of Legacy WMH prior to the Business Combination; (ii) the combined results of the WMH LLC and Silver Spike following the Business Combination; and (iii) the acquired assets and liabilities of Silver Spike stated at historical cost, with no goodwill or other intangible assets recorded. | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of WM Technology, Inc. and WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.LU., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, WM Museum, LLC, WM Teal, LLC, Weedmaps Germany GmbH, Transport Logistics Holding Company, LLC and WM Loyalty, LLC. All significant intercompany balance and transactions have been eliminated upon consolidation. | Principles of Consolidation The consolidated financial statements include the accounts of WM Holding Company, LLC and its subsidiaries, GMG Holdco, Inc., Weedmaps Media, LLC (“Weedmaps”), Ghost Management Group, LLC, WM Canada Holdings, Inc., WM Enterprise, LLC, WM Marketplace, LLC, Weedmaps Spain, S.L.U., WM Retail, LLC, Grow One Software (Canada), Inc., Discovery Opco, LLC, Weedmaps Germany GmbH, WM Teal, LLC, WM Museum, LLC, Weedmaps Artist Management, LLC, Ghost Gaming Holdings, LLC, WMBP Investment, LLC, and WMG Pharma GmbH. All significant intercompany balance and transactions have been eliminated upon consolidation. |
Foreign Currency | Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the three and nine months ended September 30, 2021 and 2020. | Foreign Currency Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect at the balance sheet date. Revenue and expense accounts are translated at the average exchange rates during the periods. The impact of exchange rate fluctuations from translation of assets and liabilities is insignificant for the years ended December 31, 2020, 2019 and 2018. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, leases, valuation of goodwill and other intangible assets, valuation of warrant liability, deferred tax asset and tax receivable agreement liability, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, valuation of goodwill and other intangible assets, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities. |
Accounts Receivable | Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed on a monthly basis and the Company reserves for all balances outstanding in excess of ninety days. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. The Company recorded a provision for doubtful accounts of $3.0 million and $0.9 million as of September 30, 2021 and December 31, 2020, respectively. | Accounts Receivable Accounts receivable is recorded at the invoiced amount and does not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in existing accounts receivable. The allowance for doubtful accounts is reviewed monthly and past due balances are reviewed individually for collectability. Account balances are written off against the allowance when it is determined that it is probable that the receivable will not be recovered. As of December 31, 2020, and 2019, the Company recorded an allowance for bad debt of $857,382 and $913,715, respectively. |
Revenue Recognition | Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and the Company’s SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing and software subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Starting on January 1, 2021, the Company eliminated the technology services fee charge related to the Company’s orders functionality. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $5.3 million was fully recognized in the first quarter of fiscal year 2021, and the deferred revenue balance as of September 30, 2021 of $7.8 million is expected to be fully recognized within the next twelve months. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenues recognized over time (1) $ 50,884 $ 44,459 $ 138,969 $ 112,615 Revenues recognized at a point in time (2) — 2,046 — 4,855 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 _________________ (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 U.S. revenues $ 50,884 $ 34,877 $ 138,969 $ 91,275 Foreign revenues — 11,628 — 26,195 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 All foreign revenues were generated in Canada. During the second half of fiscal 2020, the Company discontinued its services to Canada-based retail operator clients who failed to provide valid license information, similar to the transition the Company implemented in California at the end of fiscal 2019. Following the completion of the discontinuation of such services, all revenue has been generated in the United States. | Revenue Recognition The Company’s revenues are derived primarily from monthly subscriptions and additional offerings for access to the Company’s Weedmaps platform and our SaaS solutions. The Company recognizes revenue when the fundamental criteria for revenue recognition are met. The Company recognizes revenue by applying the following steps: the contract with the customer is identified; the performance obligations in the contract are identified; the transaction price is determined; the transaction price is allocated to the performance obligations in the contract; and revenue is recognized when (or as) the Company satisfies these performance obligations in an amount that reflects the consideration it expects to be entitled to in exchange for those services. Substantially all of the Company’s revenue is generated by providing standard listing subscription services and other paid listing subscriptions services, including featured listings, promoted deals, nearby listings and other display advertising to its customers. These arrangements are recognized over-time, generally during a month-to-month subscription period as the products are provided. The Company may also provide services to its customers, including access to the Company’s orders functionality, which are recognized at a point in time, typically when an order for delivery or pickup is submitted. The Company rarely needs to allocate the transaction price to separate performance obligations. In the rare case that allocation of the transaction price is needed, the Company recognizes revenue in proportion to the standalone selling prices of the underlying services at contract inception. Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from subscription offerings, as described above, and is recognized as the revenue recognition criteria are met. The prior year deferred revenue balance of $4.3 million was fully recognized in fiscal year 2020, and the current year deferred revenue balance of $5.3 million is expected to be recognized in 2021, which is expected to be within the next year. The Company generally invoices customers and receives payment on an upfront basis and payments do not include significant financing components or variable consideration and there are generally no rights of return or refunds after the subscription period has passed. The following table summarizes the Company’s disaggregated net revenue information for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Revenues recognized over time (1) $ 101,402,007 $ 143,489,929 $ 155,362,875 Revenues recognized at a point in time (2) — 741,550 6,427,887 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. The following table summarizes the Company’s U.S. and foreign revenues for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 U.S. revenues $ 100,670,847 $ 132,076,823 $ 130,373,022 Foreign revenues 731,160 12,154,656 31,417,740 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 All foreign revenues were generated in Canada. |
Income Taxes | Income Taxes The Company Income Taxes. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision, and estimate of the Company’s annual effective tax rate, is subject to variation due to several factors, including variability in pre-tax income (or loss), revaluations of the warrant liability, changes in flow-through income not subject to tax and tax law developments. As a result of the Business Combination, WM Technology, Inc. became the sole managing member of WMH LLC, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, WMH LLC is not subject to U.S. federal and certain state and local income taxes. Accordingly, no provision for U.S. federal and state income taxes has been recorded in the financial statements for the period of January 1 to June 16, 2021 as this period was prior to the Business Combination. Any taxable income or loss generated by WMH LLC is passed through to and included in the taxable income or loss of its members, including WM Technology, Inc. following the Business Combination, on a pro rata basis. WM Technology, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income of WMH LLC following the Business Combination. The Company is also subject to taxes in foreign jurisdictions. For the three and nine months ended September 30, 2021, the Company recorded a provision for income taxes of $0.4 million and $0.2 million, respectively. The provision for income taxes during the first quarter of 2021 was the result of an audit performed by the Canada Revenue Agency on prior years income taxes paid by the Company’s subsidiary, WM Canada Holdings, Inc. The effective tax rates differ from the federal statutory rate of 21% primarily due to the impact of warrant valuations, non-controlling interests represented by the portion of the flow-through income not subject to tax, permanent stock based compensation, and state taxes. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. The Company does not believe it has any uncertain income tax positions that are more-likely-than-not to materially affect its condensed consolidated financial statements. | Income Taxes Other than for the Company’s foreign subsidiaries that are subject to their jurisdictions’ income tax laws, the remaining subsidiaries, as well as the holding entity, are not subject to income tax, with the members of the Company including their respective share of the Company’s profits and losses in their individual income tax returns. For the year ended December 31, 2019, the Company recorded a provision for income taxes of approximately $1.3 million, related to estimated taxable income from operations of WM Canada Holdings, Inc., in the accompanying statement of operations. No provision for income taxes was recorded for the year ended December 31, 2020 and 2018. The components of income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows: 2018 2019 2020 United States $ 12,010,276 $ (4,152,308 ) $ 38,877,652 Foreign 669,235 5,097,668 (47,659 ) Net income (loss) before provision for income taxes $ 12,679,511 $ 945,360 $ 38,829,993 While electing Limited Liability Company status, the Company does not believe it has any uncertain income tax positions that are more likely that not to materially affect its consolidated financial statements. The Company’s federal and state income tax returns remain open to agency examination for the standard statutory length of time after filing. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. | Concentrations of Credit Risk The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts. |
Cost of Revenue | Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. | Cost of Revenue The Company’s cost of revenue primarily consists of web hosting, internet service costs, and credit card processing costs. |
Product Development Costs | Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. | Product Development Costs Product development costs includes salaries and benefits for employees, including engineering and technical teams who are responsible for building new products, as well as improving existing products. Product development costs that do not meet the criteria for capitalization are expensed as incurred. |
Advertising | Advertising The Company expenses the cost of advertising in the period incurred. Advertising expense totaled $4.1 million and $2.4 million for the three months ended September 30, 2021 and 2020, respectively, and $11.9 million and $6.7 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in sales and marketing expense in the accompanying condensed consolidated statements of income. | Advertising The Company expenses the cost of all advertising in the period incurred. Advertising expense totaled $10.6 million, $20.6 million, and $6.6 million, for the years ended December 31, 2020, 2019 and 2018, respectively, and are included in sales and marketing expense in the accompanying consolidated statements of operations. |
Political Contributions | Political Contributions The Company expenses the costs of all political contributions in the period incurred. Political contributions totaled $0.2 million and $0.3 million for the three months ended September 30, 2021 and 2020, respectively, and $0.5 million and $0.6 million for the nine months ended September 30, 2021 and 2020, respectively, and are included in other expense in the accompanying condensed consolidated statements of income. | |
Stock-Based Compensation | Stock-Based Compensation The Company measures fair value of employee stock-based compensation awards on the date of grant and allocates the related expense over the requisite service period. The fair value of the Class P Units are measured using the Black-Scholes-Merton valuation model. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. | Stock-Based Compensation The Company measures all employee stock-based compensation awards on the date of grant using the Black-Scholes-Merton valuation model and allocates the related expense over the requisite service period. When awards include a performance condition that impacts the vesting for exercisability of the award, the Company records compensation cost when it becomes probable that the performance condition will be met and the service is provided. The expected volatility is based on the historical volatility and implied volatilities for comparable companies, the expected life of the award is based on the simplified method. The Company accounts for nonemployee stock-based transactions using the fair value of the consideration received (i.e., the value of the goods or services) or the fair value of the equity instruments issued, whichever is more reliably measurable. |
Segment Reporting | Segment Reporting The Company and its subsidiaries operate in one business segment. | Segment Reporting The Company and its subsidiaries operate in one business segment. |
Earnings Per Share | Earnings Per Share Basic income (loss) per share is computed by dividing net income (loss) attributable to WM Technology, Inc. by the weighted-average number of shares of Class A Common Stock outstanding during the period. Diluted income (loss) per share is computed giving effect to all potential weighted-average dilutive shares for the period. The dilutive effect of outstanding awards or financial instruments, if any, is reflected in diluted income (loss) per share by application of the treasury stock method or if-converted method, as applicable. Prior to the Business Combination, the membership structure of Legacy WMH included units which had profit interests. The Company analyzed the calculation of earnings per unit for periods prior to the Business Combination and determined that it resulted in values that would not be meaningful to the users of these condensed consolidated financial statements. As a result, earnings per share information has not been presented for periods prior to the Business Combination on June 16, 2021. The basic and diluted income (loss) per share for the nine months ended September 30, 2021 represent the period from June 16, 2021 (Closing Date) to September 30, 2021. | Earnings Per Unit Earnings per unit amounts are computed independently for earnings per unit from continuing operations, loss per unit from discontinued operations and net earnings per unit. As a result, the sum of per unit amounts from continuing operations and discontinued operations may not equal the total per unit amounts for net earnings. All Class A Units, including Class A-1, Class A-2, and Class A-3 Units, have been included in the calculations for earnings per unit as of December 31, 2020, 2019 and 2018 primarily due to their voting and distribution rights. Since Class B Units had no voting, distribution, or dividend rights and were subject to exercise limitations, such units have been excluded from the calculations for earnings per unit as of December 31, 2020, 2019 and 2018. No other dilutive instruments were outstanding as of December 31, 2020, 2019, and 2018. See Note 8 for further discussion. |
Warrant Liability | Warrant Liability The Company assumed 12,499,933 Public Warrants and 7,000,000 Private Placement Warrants (together, the “Warrants”) upon the Closing, all of which were issued in connection with Silver Spike’s initial public offering and entitle the holder to purchase one share of Class A Common Stock at an exercise price of at $11.50 per share. All of the Warrants remained outstanding as of September 30, 2021. The Public Warrants are publicly traded and are exercisable for cash unless certain conditions occur, such as the failure to have an effective registration statement related to the shares issuable upon exercise or redemption by the Company under certain conditions, at which time the warrants may be cashless exercised. The Private Placement Warrants are transferable, assignable or salable in certain limited exceptions. The Private Placement Warrants are exercisable for cash or on a cashless basis, at the holder’s option, and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will cease to be Private Placement Warrants, and become Public Warrants and be redeemable by the Company and exercisable by such holders on the same basis as the other Public Warrants. The Company evaluated the Warrants under ASC 815-40 - Derivatives and Hedging - Contracts in Entity’s Own Equity | |
Fair Value Measurements | Fair Value Measurements The Company follows the guidance in ASC 820 - Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: ● 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 the Company assessment of the assumptions that market participants would use in pricing the asset or liability. | Fair Value Measurements At December 31, 2020 and 2019, the Company did not have any assets or liabilities measured at fair value on a recurring or nonrecurring basis. |
Tax Receivable Agreement | Tax Receivable Agreement The Business Combination was accomplished through what is commonly referred to as an “Up-C” structure, which is often used by partnerships and limited liability companies undertaking an initial public offering. The Up-C structure allows the Legacy WMH Unit holders to retain their equity ownership in WMH LLC, an entity that is classified as a partnership for U.S. federal income tax purposes, in the form of Units and provides potential future tax benefits for both the Company and the WMH LLC Unit holders when they ultimately exchange their pass-through interests for shares of Class A Common Stock. Additionally, the Company could obtain future increases in its tax basis of the assets of WMH LLC when such units are redeemed or exchanged by the continuing members. This increase in tax basis may have the effect of reducing the amounts paid in the future to various tax authorities. The increase in tax basis may also decrease gains (or increase losses) on future dispositions of certain capital assets to the extent tax basis is allocated to those capital assets. In connection with the Business Combination, the Company entered into a tax receivable agreement (the “Tax Receivable Agreement”) with continuing members that provides for a payment to the continuing Class A Unit holders of 85% of the amount of tax benefits, if any, that the Company realizes, or is deemed to realize, as a result of redemptions or exchanges of Units. In connection with such potential future tax benefits resulting from the Business Combination, the Company has established a deferred tax asset for the additional tax basis and a corresponding TRA liability of 85% of the expected benefit. The remaining 15% is recorded to additional paid-in capital. | |
Leases | Leases Effective January 1, 2021, the Company accounts for its leases under ASC 842 - Leases In calculating the right-of-use asset and lease liability, the Company elects to combine lease and non-lease components for all classes of assets. The Company excludes short-term leases having initial terms of 12 months or less from the new guidance as an accounting policy election, and instead recognizes rent expense on a straight-line basis over the lease term. The Company continues to account for leases in the prior period financial statements under ASC 840, Leases | |
Investment in Equity Security | Investment in Equity Security Investments in equity securities that do not have a readily determinable fair value and qualify for the measurement alternative for equity investments provided in ASC 321, Investments – Equity Securities | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The Company adopted ASC 842 as of January 1, 2021, using the modified retrospective transition approach by recording an ROU asset and lease liability for operating leases of $43.3 million and $48.4 million, respectively, at that date; the Company did not have any finance lease assets and liabilities upon adoption or any arrangements where it acts as a lessor. Adoption of ASC 842 did not have an effect on the Company’s retained earnings. The Company availed itself of the practical expedients provided under ASC 842 regarding identification of leases, lease classification, indirect costs, and the combination of lease and non-lease components for all classes of assets. The Company continues to account for leases in the prior period financial statements under ASC 840. | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). The guidance in this ASU supersedes the leasing guidance in Topic 840, Leases. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated statements of operations. The new guidance is effective for private companies for annual periods beginning after December 15, 2020, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available. The Company has multiple long-term operating leases and is currently in the process of evaluating the impact of the new accounting guidance on its consolidated balance sheets, consolidated statement of income and cash flows. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in GAAP when it becomes effective and permits the use of either a full retrospective or retrospective with cumulative effect transition method. The Company used the modified retrospective method of adoption, which would require the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2019. Comparative prior year periods would not be adjusted. The new accounting standard was applied to all contracts at the date of initial application. There was no cumulative effect of applying the new revenue standard to contracts executed in prior periods. As such, the adoption of the new accounting standard had no impact on the balance sheet and statement of operations in the current or prior periods. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the measurement of goodwill impairment by eliminating the requirement that an entity compute the implied fair value of goodwill based on the fair values of its assets and liabilities to measure impairment. Instead, goodwill impairment will be measured as the difference between the fair value of the reporting unit and the carrying value of the reporting unit. The ASU also clarifies the treatment of the income tax effect of tax deductible goodwill when measuring goodwill impairment loss. The guidance is effective for reporting periods beginning after December 15, 2021. The Company is currently evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (FY) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Schedule of Disaggregation of Revenue | The following table summarizes the Company’s disaggregated net revenue information (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenues recognized over time (1) $ 50,884 $ 44,459 $ 138,969 $ 112,615 Revenues recognized at a point in time (2) — 2,046 — 4,855 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 _________________ (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. | The following table summarizes the Company’s disaggregated net revenue information for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Revenues recognized over time (1) $ 101,402,007 $ 143,489,929 $ 155,362,875 Revenues recognized at a point in time (2) — 741,550 6,427,887 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. |
Schedule of Revenue from External Customers by Geographic Areas | The following table summarizes the Company’s U.S. and foreign revenues (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 U.S. revenues $ 50,884 $ 34,877 $ 138,969 $ 91,275 Foreign revenues — 11,628 — 26,195 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 | The following table summarizes the Company’s U.S. and foreign revenues for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 U.S. revenues $ 100,670,847 $ 132,076,823 $ 130,373,022 Foreign revenues 731,160 12,154,656 31,417,740 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 |
Income (Loss) Before Income Taxes | The components of income (loss) before income taxes for the years ended December 31, 2020, 2019 and 2018 were as follows: 2018 2019 2020 United States $ 12,010,276 $ (4,152,308 ) $ 38,877,652 Foreign 669,235 5,097,668 (47,659 ) Net income (loss) before provision for income taxes $ 12,679,511 $ 945,360 $ 38,829,993 |
Property and Equipment (FY) (Ta
Property and Equipment (FY) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property and Equipment [Abstract] | |
Property and Equipment | Property and equipment consists of the following as of December 31, 2020 and 2019: 2019 2020 Computer equipment $ 6,585,289 $ 7,117,299 Capitalized software 5,122,650 5,122,650 Furniture and fixtures 1,213,132 1,285,880 Leasehold improvements 1,892,172 2,598,566 14,813,243 16,124,395 Less: accumulated depreciation and amortization (5,657,718 ) (8,736,975 ) $ 9,155,525 $ 7,387,420 |
Intangible Assets (FY) (Tables)
Intangible Assets (FY) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets [Abstract] | ||
Intangible Assets, Net | Intangible assets consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Weighted Average Amortization Period (Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Trade and domain names 14.3 $ 7,713 $ (3,917 ) $ 3,796 Software technology 7.7 5,694 (2,976 ) 2,718 Customer relationships 3.4 1,932 — 1,932 Total intangible assets 10.5 $ 15,339 $ (6,893 ) $ 8,446 December 31, 2020 Weighted Average Amortization Period (Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Trade and domain names 15.0 $ 7,255 $ (3,556 ) $ 3,699 Software technology 9.4 3,469 (2,663 ) 806 Total intangible assets 13.2 $ 10,724 $ (6,219 ) $ 4,505 | Intangible assets consisted of the following as of December 31, 2020 and 2019: 2019 2020 Trade and domain names $ 7,255,381 $ 7,255,381 Software technology 3,468,534 3,468,534 10,723,915 10,723,915 Less: accumulated amortization (5,320,959 ) (6,219,507 ) Total intangible assets $ 5,402,956 $ 4,504,408 |
Discontinued Operations (FY) (T
Discontinued Operations (FY) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Revenue and net loss related to discontinued operations for the years ended December 31, 2020, 2019 and 2018 are as follows: 2018 2019 2020 Revenue $ 85,907 $ — $ — Net Loss $ (1,674,738 ) $ — $ — Cash flow from discontinued operations for the year ended December 31, 2020, 2019 and 2018 are as follows: 2018 2019 2020 Net cash used in operating activities $ (1,670,873 ) $ — $ — Net cash provided by (used in) investing activities 355,536 $ — — Net cash provided by financing activities $ 1,268,121 $ — $ — |
Members' Equity (FY) (Tables)
Members' Equity (FY) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Members' Equity [Abstract] | ||
Issuances of Class A-3 and Class B Unit Activities | A summary of the Class P Unit activity for the nine months ended September 30, 2021 is as follows: Number of Units Outstanding Class A-3 and Class B Units, December 31, 2020 274,816 Repurchases (8,279 ) Cancellations (4,288 ) Outstanding Class A-3 and Class B Units, June 15, 2021 (Pre-Business Combination) 262,249 Class A-3 Units outstanding exchanged for Class A Units in connection with the Business Combination (53,333 ) Recapitalization in connection with the Business Combination 25,687,126 Outstanding Class P Units, June 16, 2021 25,896,042 Cancellations (216,920 ) Outstanding Class P Units, September 30, 2021 25,679,122 Vested, September 30, 2021 23,197,454 | The following presents issuances of Class A-3 and Class B Units during the years ended December 31, 2020, 2019 and 2018: Outstanding at December 31, 2017 252,241 Granted 44,125 Repurchase (12,391 ) Cancellations (38,604 ) Outstanding at December 31, 2018 245,371 Granted 25,990 Cancellations (7,284 ) Outstanding at December 31, 2019 264,077 Granted 14,250 Repurchase (1,900 ) Cancellations (1,611 ) Outstanding at December 31, 2020 274,816 Vested as of December 31, 2019 207,398 Vested as of December 31, 2020 234,114 |
Unvested Class A-3 and Class B Units | The following presents a summary of unvested Class A-3 and Class B Units during the years ended December 31, 2020, 2019 and 2018: Weighted - Average Units Grant Date Fair Value Remaining Years to Vest Remaining Unrecognized Nonvested, December 31, 2018 62,024 $ 236.37 3.09 $ 12,215,953 Granted 25,990 531.80 Vested (24,051 ) 231.74 Cancelled (7,284 ) 238.87 Nonvested, December 31, 2019 56,679 $ 373.47 2.65 $ 18,682,331 Granted 14,250 724.28 Vested (28,616 ) 359.45 Cancelled (1,611 ) 450.83 Nonvested, December 31, 2020 40,702 $ 518.13 2.38 $ 22,474,033 | |
Valuation Assumptions | The fair value of Class A-3 and B-Units granted were estimated on their respective grant dates using the Black-Scholes-Merton option pricing model and the following assumptions for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Volatility 70% 70% 50% - 70% Risk - free interest rate 2.65% - 2.90% 1.68% - 2.49% 0.21% - 0.29% Dividend yield 0.00% 0.00% 0.00% Expected life of option (in years) 4 years 4 years 4 years Weighted - average fair value of common stock $305.35 $531.80 $724.28 |
Commitments and Contingencies_3
Commitments and Contingencies (FY) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies [Abstract] | ||
Minimum Lease Obligations Under Noncancelable Operating Leases | As of September 30, 2021, future minimum payments for the next five years and thereafter are as follows (in thousands): Operating Leases Remaining period in 2021 (three months) $ 2,343 Year ended December 31, 2022 9,597 Year ended December 31, 2023 9,898 Year ended December 31, 2024 9,405 Year ended December 31, 2025 5,830 Thereafter 29,732 Future minimum lease payments $ 66,805 Less: present value discount (20,736 ) Operating lease liabilities $ 46,069 | The Company leases space in Irvine, California; Los Angeles, California; Denver, Colorado; New York, New York; Ontario, Canada; and Barcelona, Spain. Minimum lease obligations under noncancelable operating leases, which expire at various dates through the year ended 2031, are as follows: Years ending December 31, 2021 8,225,436 2022 9,605,487 2023 9,897,648 2024 9,405,482 2025 and beyond 35,561,951 $ 72,696,004 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Q3) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | ||
Schedule of Disaggregation of Revenue | The following table summarizes the Company’s disaggregated net revenue information (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Revenues recognized over time (1) $ 50,884 $ 44,459 $ 138,969 $ 112,615 Revenues recognized at a point in time (2) — 2,046 — 4,855 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 _________________ (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. | The following table summarizes the Company’s disaggregated net revenue information for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 Revenues recognized over time (1) $ 101,402,007 $ 143,489,929 $ 155,362,875 Revenues recognized at a point in time (2) — 741,550 6,427,887 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 (1) Revenues from listing subscription services, featured listings and other advertising products. (2) Revenues from use of orders functionality. |
Schedule of Revenue from External Customers by Geographic Areas | The following table summarizes the Company’s U.S. and foreign revenues (in thousands): Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 U.S. revenues $ 50,884 $ 34,877 $ 138,969 $ 91,275 Foreign revenues — 11,628 — 26,195 Total revenues $ 50,884 $ 46,505 $ 138,969 $ 117,470 | The following table summarizes the Company’s U.S. and foreign revenues for the years ended December 31, 2020, 2019 and 2018: 2018 2019 2020 U.S. revenues $ 100,670,847 $ 132,076,823 $ 130,373,022 Foreign revenues 731,160 12,154,656 31,417,740 Total revenues $ 101,402,007 $ 144,231,479 $ 161,790,762 |
Leases (Q3) (Tables)
Leases (Q3) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Lease, Cost | The components of lease related costs for the three and nine months ended September 30, 2021 are as follows (in thousands): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Operating lease cost $ 2,350 $ 7,118 Variable lease cost 565 1,715 Operating lease cost 2,915 8,833 Short-term lease cost 1 88 Total lease cost $ 2,916 $ 8,921 | |
Schedule of Operating Lease Liability, Maturity | As of September 30, 2021, future minimum payments for the next five years and thereafter are as follows (in thousands): Operating Leases Remaining period in 2021 (three months) $ 2,343 Year ended December 31, 2022 9,597 Year ended December 31, 2023 9,898 Year ended December 31, 2024 9,405 Year ended December 31, 2025 5,830 Thereafter 29,732 Future minimum lease payments $ 66,805 Less: present value discount (20,736 ) Operating lease liabilities $ 46,069 | The Company leases space in Irvine, California; Los Angeles, California; Denver, Colorado; New York, New York; Ontario, Canada; and Barcelona, Spain. Minimum lease obligations under noncancelable operating leases, which expire at various dates through the year ended 2031, are as follows: Years ending December 31, 2021 8,225,436 2022 9,605,487 2023 9,897,648 2024 9,405,482 2025 and beyond 35,561,951 $ 72,696,004 |
Fair Value Measurements (Q3) (T
Fair Value Measurements (Q3) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Liabilities Measured on Recurring Basis | The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value (in thousands): Level September 30, 2021 December 31, 2020 Liabilities: Warrant liability – Public Warrants 1 $ 54,000 $ — Warrant liability – Private Placement Warrants 3 56,350 — Total warrant liability $ 110,350 $ — |
Schedule of Derivative Liabilities at Fair Value | The following tables summarize the changes in the fair value of the warrant liabilities (in thousands): Three months ended September 30, 2021 Public Warrants Private Placement Warrants Warrant Liabilities Fair value, beginning of period $ 79,375 $ 76,812 $ 156,187 Change in valuation inputs or other assumptions (25,375 ) (20,462 ) (45,837 ) Fair value, end of period $ 54,000 $ 56,350 $ 110,350 Nine months ended September 30, 2021 Public Warrants Private Placement Warrants Warrant Liabilities Fair value, beginning of period $ — $ — $ — Warrant liability acquired 100,750 93,228 193,978 Change in valuation inputs or other assumptions (46,750 ) (36,878 ) (83,628 ) Fair value, end of period $ 54,000 $ 56,350 $ 110,350 |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The following table provides quantitative information regarding Level 3 fair value measurements inputs at their measurement dates: September 30, 2021 June 16, 2021 Exercise price $ 11.50 $ 11.50 Stock price $ 14.50 $ 20.55 Volatility 60.0 % 60.0 % Term (years) 4.71 5.00 Risk-free interest rate 0.92 % 0.89 % |
Business Combination (Q3) (Tabl
Business Combination (Q3) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Reverse Recapitalization [Abstract] | |
Schedule of Reverse Recapitalization | The following table reconciles the elements of the Business Combination to the condensed consolidated statements of cash flows and the condensed consolidated statements of equity for the nine months ended September 30, 2021 (in thousands): Business Combination Cash - Silver Spike trust and cash, net of redemptions $ 254,203 Cash - PIPE Financing 325,000 Less: cash consideration paid to Legacy WMH equity holders (455,182 ) Less: transaction costs and advisory fees (44,052 ) Net proceeds from the Business Combination 79,969 Less: initial fair value of warrant liability recognized in the Business Combination (193,978 ) Add: transaction costs allocated to Warrants 5,547 Add: non-cash assets assumed from Silver Spike 1,053 Add: deferred tax asset 147,973 Less: tax receivable agreement liability (126,150 ) Net adjustment to total equity from the Business Combination $ (85,586 ) The number of shares of common stock issued immediately following the Closing: Number of Shares Common stock, outstanding prior to the Business Combination 24,998,575 Less: redemption of shares of Silver Spike’s Class A common stock 10,012 Shares of Silver Spike’s Class A common stock 24,988,563 Shares of Class A Common Stock held by Silver Spike’s Sponsor 6,250,000 Shares of Class A Common Stock issued in the PIPE Financing 32,500,000 Shares of Class A Common Stock issued in the Business Combination 63,738,563 Shares of Class V Common Stock issued to Legacy WMH equity holders 65,502,347 Total shares of common stock issued in the Business Combination 129,240,910 |
Acquisitions (Q3) (Tables)
Acquisitions (Q3) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Asset Acquisition | The following table summarizes the components of consideration and the preliminary estimated fair value of assets acquired (in thousands): Consideration Transferred: Cash consideration $ 12,000 Share consideration (1) 19,186 Total consideration $ 31,186 Estimated Assets Acquired: Software technology $ 1,976 Trade name 399 Customer relationships 1,762 Goodwill 27,049 Total asset acquired $ 31,186 (1) The fair value of share consideration issued in connection with the Spout acquisition was calculated based on 1,244,258 shares of Class A common stock issued multiplied by the share price on the closing date of $15.42. |
Schedule of Business Acquisitions | The following table summarizes the components of consideration and the preliminary estimated fair value of assets acquired (in thousands): Consideration Transferred: Cash consideration (1) $ 5,000 Share consideration (2) 10,126 Total consideration $ 15,126 Estimated Assets Acquired: Software technology $ 249 Trade name 59 Customer relationships 170 Goodwill 14,648 Total asset acquired $ 15,126 (1) Includes holdback of $1.0 million recorded within other current liabilities on the Company’s condensed consolidated balance sheets. (2) The fair value of share consideration issued in connection with the TLH acquisition was calculated based on 694,540 shares of Class A common stock issued multiplied by the share price on the closing date of $14.58. |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Q3) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets [Abstract] | ||
Schedule of Goodwill | A summary of changes in goodwill for the nine months ended September 30, 2021 is as follows (in thousands): Goodwill Balance at December 31, 2020 $ 3,961 Acquisition of Sprout 27,049 Acquisition of TLH 14,648 Balance at September 30, 2021 $ 45,658 | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 Weighted Average Amortization Period (Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Trade and domain names 14.3 $ 7,713 $ (3,917 ) $ 3,796 Software technology 7.7 5,694 (2,976 ) 2,718 Customer relationships 3.4 1,932 — 1,932 Total intangible assets 10.5 $ 15,339 $ (6,893 ) $ 8,446 December 31, 2020 Weighted Average Amortization Period (Years) Gross Intangible Assets Accumulated Amortization Net Intangible Assets Trade and domain names 15.0 $ 7,255 $ (3,556 ) $ 3,699 Software technology 9.4 3,469 (2,663 ) 806 Total intangible assets 13.2 $ 10,724 $ (6,219 ) $ 4,505 | Intangible assets consisted of the following as of December 31, 2020 and 2019: 2019 2020 Trade and domain names $ 7,255,381 $ 7,255,381 Software technology 3,468,534 3,468,534 10,723,915 10,723,915 Less: accumulated amortization (5,320,959 ) (6,219,507 ) Total intangible assets $ 5,402,956 $ 4,504,408 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated future amortization expense of intangible assets as of September 30, 2021 is as follows (in thousands): Remaining period in 2021 (three months) $ 611 Year ended December 31, 2022 2,057 Year ended December 31, 2023 1,659 Year ended December 31, 2024 1,442 Year ended December 31, 2025 1,017 Thereafter 1,660 $ 8,446 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Q3) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued liabilities as of September 30, 2021 and December 31, 2020 consisted of the following (in thousands): September 30, 2021 December 31, 2020 Accounts payable $ 6,362 $ 2,244 Accrued employee expenses 6,500 6,586 Other accrued liabilities 11,019 3,821 $ 23,881 $ 12,651 |
Stock-based Compensation (Q3) (
Stock-based Compensation (Q3) (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Schedule of Class P Unit Activities | A summary of the Class P Unit activity for the nine months ended September 30, 2021 is as follows: Number of Units Outstanding Class A-3 and Class B Units, December 31, 2020 274,816 Repurchases (8,279 ) Cancellations (4,288 ) Outstanding Class A-3 and Class B Units, June 15, 2021 (Pre-Business Combination) 262,249 Class A-3 Units outstanding exchanged for Class A Units in connection with the Business Combination (53,333 ) Recapitalization in connection with the Business Combination 25,687,126 Outstanding Class P Units, June 16, 2021 25,896,042 Cancellations (216,920 ) Outstanding Class P Units, September 30, 2021 25,679,122 Vested, September 30, 2021 23,197,454 | The following presents issuances of Class A-3 and Class B Units during the years ended December 31, 2020, 2019 and 2018: Outstanding at December 31, 2017 252,241 Granted 44,125 Repurchase (12,391 ) Cancellations (38,604 ) Outstanding at December 31, 2018 245,371 Granted 25,990 Cancellations (7,284 ) Outstanding at December 31, 2019 264,077 Granted 14,250 Repurchase (1,900 ) Cancellations (1,611 ) Outstanding at December 31, 2020 274,816 Vested as of December 31, 2019 207,398 Vested as of December 31, 2020 234,114 |
Schedule of Restricted Stock Units Activity | A summary of the restricted stock unit (“RSU”) activity for the nine months ended September 30, 2021 is as follows: Number of RSUs Weighted-average Grant Date Fair Value Non-vested at December 31, 2020 — $ — Granted 4,112,855 $ 13.66 Vested (242,600 ) $ 13.70 Forfeited (11,310 ) $ 13.70 Non-vested at September 30, 2021 3,858,945 $ 13.66 | |
Schedule of Stock-based Payment Arrangement | The Company recorded stock-based compensation cost related to the Class P Units and RSUs in the following expense categories on the accompanying condensed consolidated statements of income (in thousands): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Sales and marketing $ 689 $ 4,515 Product development 1,865 3,859 General and administrative 1,638 15,251 Total stock-based compensation expense 4,192 23,625 Amount capitalized to software development 695 695 Total stock-based compensation cost $ 4,887 $ 24,320 |
Earnings Per Share (Q3) (Tables
Earnings Per Share (Q3) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The computation of income (loss) per share attributable to WM Technology, Inc. and weighted-average shares of the Company’s Class A Common Stock outstanding are as follows for the three months ended September 30, 2021 and for period from June 16, 2021 (Closing Date) to September 30, 2021 (amounts in thousands, except for share and per share amounts): Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Numerator: Net income $ 49,205 $ 73,773 Less: net income attributable to WMH LLC prior to the Business Combination — 15,078 Less: net income attributable to noncontrolling interests after the Business Combination 28,370 33,597 Net income attributable to WM Technology, Inc. - Basic 20,835 25,098 Effect of dilutive securities: Less: fair value change of Public and Private Placement Warrants, net of amounts attributable to noncontrolling interests 19,618 35,679 Net income (loss) attributable to WM Technology, Inc. - Diluted $ 1,217 $ (10,581 ) Denominator: Weighted average Class A Common Stock outstanding - Basic 64,216,732 64,149,699 Weighted average effect of dilutive securities: Public Warrants 1 2,558,783 3,718,232 Private Placement Warrants 1 1,432,918 2,082,210 Restricted stock units 1 95,939 — Weighted average Class A Common Stock outstanding - Diluted 68,304,372 69,950,141 Net income (loss) per share of Class A Common Stock: Net income per share of Class A Common Stock - Basic $ 0.32 $ 0.39 Net income (loss) per share of Class A Common Stock - Diluted $ 0.02 $ (0.15 ) 1 Calculated using the treasury stock method. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following securities from its computation of diluted shares outstanding, as their effect would have been anti-dilutive: Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Class A Units 65,502,347 65,502,347 Class P Units 25,679,122 25,679,122 Restricted stock units — 3,858,945 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies, Discontinued Operations (FY) (Details) - USD ($) | May 31, 2018 | Apr. 30, 2018 |
Discontinued Operations [Abstract] | ||
Fair value of divested entities | $ 1,495,000 | |
Gain (loss) on divestiture | $ 0 | |
WMG Pharma GmbH | ||
Discontinued Operations [Abstract] | ||
Equity interest sold | 100.00% | |
Consideration amount | $ 13,490 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies, Cash and Cash Equivalents (FY) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Cash equivalents | $ 0 | $ 0 | $ 0 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies, Accounts Receivable (FY) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | |||
Allowance of bad debt | $ 3,000,000 | $ 857,382 | $ 913,715 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies, Property and Equipment (FY) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Property and Equipment [Abstract] | |
Property and equipment useful life | 3 years |
Maximum | |
Property and Equipment [Abstract] | |
Property and equipment useful life | 10 years |
Summary of Significant Accou_11
Summary of Significant Accounting Policies, Goodwill (FY) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Impairment of goodwill | $ 0 | $ 0 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies, Intangible Assets (FY) (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Intangible Assets [Abstract] | ||
Intangible assets amortization period | 10 years 6 months | 13 years 2 months 12 days |
Minimum | ||
Intangible Assets [Abstract] | ||
Intangible assets amortization period | 5 years | |
Maximum | ||
Intangible Assets [Abstract] | ||
Intangible assets amortization period | 15 years |
Summary of Significant Accou_13
Summary of Significant Accounting Policies, Impairment of Long-Lived Assets (FY) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Impairment of long-lived assets | $ 0 | $ 0 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies, Disaggregated Net Revenue (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||
Revenue recognized | $ 4,300,000 | ||||||
Deferred revenue | $ 7,800,000 | $ 7,800,000 | 5,300,000 | ||||
Total revenues | 50,884,000 | $ 46,505,000 | 138,969,000 | $ 117,470,000 | 161,790,762 | $ 144,231,479 | $ 101,402,007 |
Revenues recognized over time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 50,884,000 | 44,459,000 | 138,969,000 | 112,615,000 | 155,362,875 | 143,489,929 | 101,402,007 |
Revenues recognized at a point in time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 0 | $ 2,046,000 | $ 0 | $ 4,855,000 | $ 6,427,887 | $ 741,550 | $ 0 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies, Revenue by Geographic Areas (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 50,884,000 | $ 46,505,000 | $ 138,969,000 | $ 117,470,000 | $ 161,790,762 | $ 144,231,479 | $ 101,402,007 |
U.S. revenues | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 50,884,000 | 34,877,000 | 138,969,000 | 91,275,000 | 130,373,022 | 132,076,823 | 100,670,847 |
Foreign revenues | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 0 | $ 11,628,000 | $ 0 | $ 26,195,000 | $ 31,417,740 | $ 12,154,656 | $ 731,160 |
Summary of Significant Accou_16
Summary of Significant Accounting Policies, Income Taxes (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||||||
Provision for income tax | $ 393,000 | $ 0 | $ 242,000 | $ 0 | $ 0 | $ 1,321,045 | $ 0 |
Net income (loss) before provision for income taxes | 38,829,993 | 945,360 | 12,679,511 | ||||
United States | |||||||
Income Taxes [Abstract] | |||||||
Net income (loss) before provision for income taxes | 38,877,652 | (4,152,308) | 12,010,276 | ||||
Foreign | |||||||
Income Taxes [Abstract] | |||||||
Net income (loss) before provision for income taxes | $ (47,659) | $ 5,097,668 | $ 669,235 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies, Fair Value Measurements (FY) (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Assets measured at fair value | $ 0 | $ 0 |
Liabilities measured at fair value | $ 0 | $ 0 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies, Advertising (FY) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||||||
Advertising expenses | $ 4.1 | $ 2.4 | $ 11.9 | $ 6.7 | $ 10.6 | $ 20.6 | $ 6.6 |
Summary of Significant Accou_19
Summary of Significant Accounting Policies, Other Expenses, Net (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||||||
Political contribution | $ 200,000 | $ 300,000 | $ 500,000 | $ 600,000 | $ 773,370 | $ 915,250 | $ 795,275 |
Financing fees | 807,474 | 3,540,636 | 286,228 | ||||
Sales tax paid | 0 | 610,539 | 0 | ||||
Gain (loss) from currency exchange | $ (729,505) | $ (34,705) | $ 7,455 |
Summary of Significant Accou_20
Summary of Significant Accounting Policies, Segment Reporting (FY) (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Accounting Policies [Abstract] | |
Number of operating segment | 1 |
Summary of Significant Accou_21
Summary of Significant Accounting Policies, Earnings Per Unit (FY) (Details) - shares | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Other dilutive instruments | 0 | 0 | 0 |
Property and Equipment (FY) (De
Property and Equipment (FY) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 16,124,395 | $ 14,813,243 | ||
Less: accumulated depreciation and amortization | (8,736,975) | (5,657,718) | ||
Property and equipment, net | 7,387,420 | 9,155,525 | $ 10,031,000 | |
Depreciation and amortization expense | 3,079,257 | 1,776,983 | $ 1,266,508 | |
Foreign Locations | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, net | 78,921 | 174,361 | ||
Computer Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 7,117,299 | 6,585,289 | ||
Capitalized Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 5,122,650 | 5,122,650 | ||
Furniture and Fixtures | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 1,285,880 | 1,213,132 | ||
Leasehold Improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 2,598,566 | $ 1,892,172 |
Intangible Assets (FY) (Details
Intangible Assets (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Gross intangible assets | $ 15,339,000 | $ 15,339,000 | $ 10,723,915 | $ 10,723,915 | |||
Less: accumulated amortization | (6,893,000) | (6,893,000) | (6,219,507) | (5,320,959) | |||
Total intangible assets | 8,446,000 | 8,446,000 | 4,504,408 | 5,402,956 | |||
Amortization expense | 200,000 | $ 200,000 | $ 700,000 | $ 700,000 | $ 898,548 | 3,385,613 | $ 882,120 |
Accelerated amortization expense | 2,479,029 | ||||||
Useful life of asset | 10 years 6 months | 13 years 2 months 12 days | |||||
Trade and Domain Names | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Gross intangible assets | 7,713,000 | $ 7,713,000 | $ 7,255,381 | 7,255,381 | |||
Less: accumulated amortization | (3,917,000) | (3,917,000) | (3,556,000) | ||||
Total intangible assets | 3,796,000 | $ 3,796,000 | $ 3,699,000 | ||||
Useful life of asset | 14 years 3 months 18 days | 15 years | |||||
Software Technology | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Gross intangible assets | 5,694,000 | $ 5,694,000 | $ 3,468,534 | $ 3,468,534 | |||
Less: accumulated amortization | (2,976,000) | (2,976,000) | (2,663,000) | ||||
Total intangible assets | $ 2,718,000 | $ 2,718,000 | $ 806,000 | ||||
Useful life of asset | 7 years 8 months 12 days | 9 years 4 months 24 days | |||||
Marketing Project | |||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||
Useful life of asset | 3 years |
Discontinued Operations (FY) (D
Discontinued Operations (FY) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue and Net Loss Related to Discontinued Operations [Abstract] | |||
Revenue | $ 0 | $ 0 | $ 85,907 |
Net Loss | 0 | 0 | (1,674,738) |
Cash Flow from Discontinued Operations [Abstract] | |||
Net cash used in operating activities | 0 | 0 | (1,670,873) |
Net cash provided by (used in) investing activities | 0 | 0 | 355,536 |
Net cash provided by financing activities | $ 0 | $ 0 | $ 1,268,121 |
Notes Payable to Members (FY) (
Notes Payable to Members (FY) (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)NotesMember | Dec. 31, 2019USD ($) | |
Notes Payable to Members [Abstract] | ||
Number of notes to pay in connection with purchase of Weedmaps | 4 | |
Number of majority related parties entitled to receive notes payable | Member | 2 | |
Number of notes paid off in full in prior periods | 3 | |
Principal balance | $ | $ 205,324 | $ 205,324 |
Notes payable interest rate | 0.00% |
Members' Equity - Stock Issuanc
Members' Equity - Stock Issuance (FY) (Details) - USD ($) $ in Millions | 5 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class A-1 Units | |||
Members' equity | |||
Common units, shares authorized (in shares) | 821,769 | 821,769 | 821,769 |
Common units, shares issued (in shares) | 821,769 | 821,769 | 821,769 |
Common units, shares outstanding (in shares) | 821,769 | 821,769 | 821,769 |
Class A-2 Units | |||
Members' equity | |||
Common units, shares authorized (in shares) | 34,264 | 34,264 | 34,264 |
Common units, shares issued (in shares) | 24,058 | 24,058 | 24,058 |
Common units, shares outstanding (in shares) | 24,058 | 24,058 | 24,058 |
Common stock, units sold (in shares) | 24,058 | ||
Proceeds from issuance of stock | $ 17.6 | ||
Class A-3 and Class B Units | |||
Members' equity | |||
Common units, shares authorized (in shares) | 274,667 | 274,822 | 274,667 |
Class A-3 Units | |||
Members' equity | |||
Common units, shares issued (in shares) | 53,333 | 53,333 | 53,333 |
Common units, shares outstanding (in shares) | 53,333 | 53,333 | 53,333 |
Class B Units | |||
Members' equity | |||
Common units, shares issued (in shares) | 192,038 | 221,483 | 210,744 |
Common units, shares outstanding (in shares) | 192,038 | 221,483 | 210,744 |
Members' Equity - Issuances of
Members' Equity - Issuances of Class A-3 and Class B Units (FY) (Details) - Class A-3 and Class B Units - shares | 6 Months Ended | 12 Months Ended | ||
Jun. 15, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Units | ||||
Outstanding beginning balance (in shares) | 274,816 | 264,077 | 245,371 | 252,241 |
Granted (in shares) | 14,250 | 25,990 | 44,125 | |
Repurchase (in shares) | (8,279) | (1,900) | (12,391) | |
Cancellations (in shares) | (4,288) | (1,611) | (7,284) | (38,604) |
Outstanding ending balance (in shares) | 262,249 | 274,816 | 264,077 | 245,371 |
Vested (in shares) | 234,114 | 207,398 |
Members' Equity, Unvested Class
Members' Equity, Unvested Class A-3 and Class B Units (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Remaining Unrecognized | |||||
Compensation cost | $ 4,887,000 | $ 24,320,000 | |||
Class A-3 Units/ Class B Units | |||||
Number of Units | |||||
Beginning balance (in shares) | 40,702 | 56,679 | 62,024 | ||
Granted (in shares) | 14,250 | 25,990 | |||
Vested (in shares) | (28,616) | (24,051) | |||
Cancelled (in shares) | (1,611) | (7,284) | |||
Ending balance (in shares) | 40,702 | 56,679 | 62,024 | ||
Weighted - Average Grant Date Fair Value | |||||
Beginning balance (in dollars per share) | $ 518.13 | $ 373.47 | $ 236.37 | ||
Granted (in dollars per share) | 724.28 | 531.80 | |||
Vested (in dollars per share) | 359.45 | 231.74 | |||
Cancelled (in dollars per share) | 450.83 | 238.87 | |||
Ending balance (in dollars per share) | $ 518.13 | $ 373.47 | $ 236.37 | ||
Weighted - Average Remaining Years to Vest | |||||
Outstanding (in years) | 2 years 4 months 17 days | 2 years 7 months 24 days | 3 years 1 month 2 days | ||
Remaining Unrecognized | |||||
Outstanding | $ 22,474,033 | $ 18,682,331 | $ 12,215,953 | ||
Compensation cost | $ 0 | $ 0 | |||
Requisite service period (Years) | 4 years |
Members' Equity, Valuation Assu
Members' Equity, Valuation Assumptions (FY) (Details) - Class A-3 Units/ Class B Units - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assumptions [Abstract] | |||
Volatility | 70.00% | 70.00% | |
Volatility, Minimum | 50.00% | ||
Volatility, Maximum | 70.00% | ||
Risk - free interest rate, Minimum | 0.21% | 1.68% | 2.65% |
Risk - free interest rate, Maximum | 0.29% | 2.49% | 2.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life of option (in years) | 4 years | 4 years | 4 years |
Weighted - average fair value of common stock (in dollars per share) | $ 724.28 | $ 531.80 | $ 305.35 |
Cumulative amount of compensation cost | $ 12 |
Commitments and Contingencies_4
Commitments and Contingencies (FY) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leases [Abstract] | |||||
2021 | $ 9,597,000 | $ 9,597,000 | $ 8,225,436 | ||
2022 | 9,898,000 | 9,898,000 | 9,605,487 | ||
2023 | 9,405,000 | 9,405,000 | 9,897,648 | ||
2024 | 5,830,000 | 5,830,000 | 9,405,482 | ||
2025 and beyond | 29,732,000 | 29,732,000 | 35,561,951 | ||
Future minimum lease payments | 66,805,000 | 66,805,000 | 72,696,004 | ||
Rent expense | $ 2,916,000 | $ 8,921,000 | $ 11,100,000 | $ 5,600,000 | $ 4,100,000 |
Subsequent Events (FY) (Details
Subsequent Events (FY) (Details) - USD ($) $ in Thousands | Dec. 10, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Subsequent Event [Line Items] | |||
Proceeds from business combination | $ 79,969 | $ 0 | |
Cash held-in-trust | 254,203 | ||
Consideration received on transaction | $ 325,000 | ||
Silver Spike | |||
Subsequent Event [Line Items] | |||
Proceeds from business combination | $ 575,000 | ||
Cash held-in-trust | 250,000 | ||
Consideration received on transaction | $ 325,000 |
Summary of Significant Accou_22
Summary of Significant Accounting Policies - Additional Information (Q3) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Line Items] | |||||||
Allowance of bad debt | $ 3,000,000 | $ 3,000,000 | $ 857,382 | $ 913,715 | |||
Deferred revenue | 7,800,000 | 7,800,000 | 5,300,000 | ||||
Income tax expense (benefit) | (393,000) | $ 0 | (242,000) | $ 0 | 0 | (1,321,045) | $ 0 |
Advertising expense | 4,100,000 | 2,400,000 | 11,900,000 | 6,700,000 | 10,600,000 | 20,600,000 | 6,600,000 |
Political contributions | $ 200,000 | $ 300,000 | $ 500,000 | $ 600,000 | 773,370 | $ 915,250 | $ 795,275 |
Number of reportable segments | segment | 1 | ||||||
Tax receivable agreement liabilities as percent of expected benefit | 85.00% | 85.00% | |||||
Tax receivable agreement, percent recorded in additional paid-in capital | 15.00% | 15.00% | |||||
Equity securities without readily determinable fair value | $ 3,000,000 | $ 3,000,000 | |||||
Operating lease, right-of-use asset | 37,673,000 | 37,673,000 | 43,300,000 | ||||
Operating lease liabilities | $ 46,069,000 | $ 46,069,000 | $ 48,400,000 | ||||
Class A Common Stock, $0.0001 par value per share | |||||||
Accounting Policies [Line Items] | |||||||
Payment to continuing members as percent of amount of tax benefit | 85.00% | 85.00% | |||||
Silver Spike | Legacy WMH Class A Unit holders | |||||||
Accounting Policies [Line Items] | |||||||
Percentage of voting interests held (over 50%) | 50.00% | 50.00% |
Summary of Significant Accou_23
Summary of Significant Accounting Policies - Disaggregated Net Revenue (Q3) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 50,884,000 | $ 46,505,000 | $ 138,969,000 | $ 117,470,000 | $ 161,790,762 | $ 144,231,479 | $ 101,402,007 |
Revenues recognized over time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 50,884,000 | 44,459,000 | 138,969,000 | 112,615,000 | 155,362,875 | 143,489,929 | 101,402,007 |
Revenues recognized at a point in time | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 0 | $ 2,046,000 | $ 0 | $ 4,855,000 | $ 6,427,887 | $ 741,550 | $ 0 |
Summary of Significant Accou_24
Summary of Significant Accounting Policies - Revenue by Geographic Areas (Q3) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 50,884,000 | $ 46,505,000 | $ 138,969,000 | $ 117,470,000 | $ 161,790,762 | $ 144,231,479 | $ 101,402,007 |
U.S. revenues | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | 50,884,000 | 34,877,000 | 138,969,000 | 91,275,000 | 130,373,022 | 132,076,823 | 100,670,847 |
Foreign revenues | |||||||
Disaggregation of Revenue [Line Items] | |||||||
Total revenues | $ 0 | $ 11,628,000 | $ 0 | $ 26,195,000 | $ 31,417,740 | $ 12,154,656 | $ 731,160 |
Summary of Significant Accou_25
Summary of Significant Accounting Policies - Warrant Liabilities (Q3) (Details) - $ / shares | Sep. 30, 2021 | Jun. 16, 2021 |
Class A Common Stock | ||
Class of Warrant or Right [Line Items] | ||
Exercise price of warrant (in dollars per share) | $ 11.50 | |
Minimum requirement for cash settlement as percent of stockholders | 50.00% | |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 12,499,933 | |
Private Placement Warrant | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 7,000,000 | 7,000,000 |
Leases - Cost Components (Q3) (
Leases - Cost Components (Q3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||||
Operating lease cost | $ 2,350 | $ 7,118 | |||
Variable lease cost | 565 | 1,715 | |||
Operating lease cost | 2,915 | 8,833 | |||
Short-term lease cost | 1 | 88 | |||
Total lease cost | $ 2,916 | $ 8,921 | $ 11,100 | $ 5,600 | $ 4,100 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments (Q3) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Remaining period in 2021 (three months) | $ 2,343,000 | |
Year ended December 31, 2022 | 9,597,000 | $ 8,225,436 |
Year ended December 31, 2023 | 9,898,000 | 9,605,487 |
Year ended December 31, 2024 | 9,405,000 | 9,897,648 |
Year ended December 31, 2025 | 5,830,000 | 9,405,482 |
Thereafter | 29,732,000 | 35,561,951 |
Future minimum lease payments | 66,805,000 | 72,696,004 |
Less: present value discount | (20,736,000) | |
Operating lease liabilities | $ 46,069,000 | $ 48,400,000 |
Leases - Additional Information
Leases - Additional Information (Q3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases [Abstract] | |||
Cash payments on operating leases | $ 2,400 | $ 5,900 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 43,300 | ||
Remaining lease term | 7 years 7 months 6 days | 7 years 7 months 6 days | |
Weighted average discount rate | 9.80% | 9.80% | |
Operating lease, impairment loss | $ 2,400 | $ 2,372 | $ 0 |
Fair Value Measurements - Warra
Fair Value Measurements - Warrants (Q3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2021 | Jun. 16, 2021 | Dec. 31, 2020 | Jun. 16, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | $ 110,350 | $ 110,350 | |||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Fair value, beginning of period | 156,187 | ||||
Warrant liability acquired | 193,978 | ||||
Change in valuation inputs or other assumptions | (45,837) | (83,628) | |||
Fair value, end of period | 110,350 | 110,350 | |||
Warrant liability | $ 110,350 | 110,350 | $ 0 | ||
Warrants | |||||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Remaining maturity | 5 years | ||||
Public Warrants | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | |||||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Fair value, beginning of period | $ 79,375 | ||||
Warrant liability acquired | 100,750 | ||||
Change in valuation inputs or other assumptions | (25,375) | (46,750) | |||
Private Placement Warrant | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | 56,350 | 56,350 | |||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Fair value, beginning of period | 76,812 | ||||
Warrant liability acquired | 93,228 | ||||
Change in valuation inputs or other assumptions | (20,462) | (36,878) | |||
Fair value, end of period | 56,350 | 56,350 | |||
Level 1 | Public Warrants | |||||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Warrant liability | 54,000 | 54,000 | $ 100,800 | ||
Level 3 | Private Placement Warrant | |||||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Warrant liability | 56,400 | 56,400 | $ 93,200 | ||
Recurring Basis | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | 110,350 | 110,350 | 0 | ||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Fair value, beginning of period | 0 | ||||
Fair value, end of period | 110,350 | 110,350 | |||
Recurring Basis | Level 1 | Public Warrants | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | 54,000 | 54,000 | 0 | ||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Fair value, beginning of period | 0 | ||||
Fair value, end of period | 54,000 | 54,000 | |||
Recurring Basis | Level 3 | Private Placement Warrant | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Warrant liability | 56,350 | 56,350 | $ 0 | ||
Changes In Fair Value Of Warrant Liabilities [Roll Forward] | |||||
Fair value, beginning of period | 0 | ||||
Fair value, end of period | $ 56,350 | $ 56,350 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information (Q3) (Details) $ in Thousands | Sep. 30, 2021USD ($)$ / shares | Jun. 16, 2021$ / shares | Dec. 31, 2020USD ($) | Jun. 16, 2020USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrant liability | $ | $ 110,350 | $ 0 | ||
Level 3 | Private Placement Warrant | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrant liability | $ | $ 56,400 | $ 93,200 | ||
Level 3 | Private Placement Warrant | Exercise price | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants, measurement input | $ / shares | 11.50 | 11.50 | ||
Level 3 | Private Placement Warrant | Stock price | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants, measurement input | $ / shares | 14.50 | 20.55 | ||
Level 3 | Private Placement Warrant | Volatility | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants, measurement input | 0.600 | 0.600 | ||
Level 3 | Private Placement Warrant | Term (years) | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants, term | 4 years 8 months 15 days | 5 years | ||
Level 3 | Private Placement Warrant | Risk-free interest rate | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Warrants, measurement input | 0.0092 | 0.0089 |
Business Combination - Addition
Business Combination - Additional Information (Q3) (Details) - USD ($) | Jun. 16, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 17, 2021 |
Schedule Of Reverse Recapitalization [Line Items] | ||||||||||||||
Cash consideration paid to Legacy WMH equity holders | $ 455,182,000 | |||||||||||||
Common stock, shares outstanding (in shares) | 129,240,910 | |||||||||||||
Period of exchange agreement | 180 days | |||||||||||||
Shares converted basis (in shares) | 1 | |||||||||||||
Net income attributable to WM Technology, Inc. | $ 58,700,000 | $ 20,835,000 | $ 7,731,000 | $ 15,530,000 | $ 9,393,000 | $ 3,809,000 | 25,098,000 | $ 28,732,000 | $ 38,829,993 | $ (375,685) | $ 12,679,511 | |||
Change in fair value of warrant liability | 83,600,000 | 45,837,000 | $ 0 | 83,628,000 | $ 0 | |||||||||
Share-based compensation expense | 23,600,000 | $ 4,192,000 | 23,625,000 | |||||||||||
Add: transaction costs allocated to Warrants | $ 5,500,000 | $ 5,547,000 | ||||||||||||
WMH LLC | ||||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | ||||||||||||||
Contributions made | $ 80,300,000 | |||||||||||||
Class A Common Stock | ||||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | ||||||||||||||
Number of shares issued in transaction (in shares) | 32,500,000 | |||||||||||||
Price per share (in dollars per share) | $ 10 | |||||||||||||
Consideration received on transaction | $ 325,000,000 | |||||||||||||
Stock redeemed during period (in shares) | 10,012 | |||||||||||||
Cash consideration paid to Legacy WMH equity holders | $ 455,200,000 | |||||||||||||
Common stock, shares outstanding (in shares) | 65,677,361 | 65,677,361 | 65,677,361 | 0 | ||||||||||
Shares of Class A Common Stock issued in the Business Combination (in shares) | 63,738,563 | |||||||||||||
Payment to continuing members as percent of amount of tax benefit | 85.00% | 85.00% | 85.00% | |||||||||||
Class A Common Stock | Common Stock | ||||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 63,738,563 | 0 | ||||||||||||
Shares of Class A Common Stock issued in the Business Combination (in shares) | 63,738,563 | |||||||||||||
Class V Common Stock | ||||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 65,502,347 | 65,502,347 | 65,502,347 | 0 | ||||||||||
Shares of Class A Common Stock issued in the Business Combination (in shares) | 65,502,347 | |||||||||||||
Class V Common Stock | Common Stock | ||||||||||||||
Schedule Of Reverse Recapitalization [Line Items] | ||||||||||||||
Common stock, shares outstanding (in shares) | 65,502,347 | 0 | ||||||||||||
Shares of Class A Common Stock issued in the Business Combination (in shares) | 65,502,347 |
Business Combination - Elements
Business Combination - Elements of Business Combination (Q3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Reverse Recapitalization [Abstract] | |||
Cash - Silver Spike trust and cash, net of redemptions | $ 254,203 | ||
Cash - PIPE Financing | 325,000 | ||
Less: cash consideration paid to Legacy WMH equity holders | (455,182) | ||
Less: transaction costs and advisory fees | (44,052) | ||
Net proceeds from the Business Combination | 79,969 | $ 0 | |
Less: initial fair value of warrant liability recognized in the Business Combination | (193,978) | 0 | |
Add: transaction costs allocated to Warrants | $ 5,500 | 5,547 | |
Add: non-cash assets assumed from Silver Spike | 1,053 | 0 | |
Add: deferred tax asset | 147,973 | 0 | |
Less: tax receivable agreement liability | (126,150) | $ 0 | |
Net adjustment to total equity from the Business Combination | $ (85,586) |
Business Combination - Number o
Business Combination - Number of Shares (Q3) (Details) - shares | Jun. 16, 2021 | Sep. 30, 2021 | Jun. 17, 2021 | Dec. 31, 2020 |
Schedule Of Reverse Recapitalization [Line Items] | ||||
Common stock, outstanding prior to Business Combination (in shares) | 129,240,910 | |||
Total shares of common stock issued in the Business Combination (in shares) | 129,240,910 | |||
Class A Common Stock | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Common stock, outstanding prior to Business Combination (in shares) | 65,677,361 | 0 | ||
Shares of Class A Common Stock issued in the PIPE Financing (in shares) | 32,500,000 | |||
Shares of Class A Common Stock issued in the Business Combination (in shares) | 63,738,563 | |||
Total shares of common stock issued in the Business Combination (in shares) | 65,677,361 | 0 | ||
Class V Common Stock | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Common stock, outstanding prior to Business Combination (in shares) | 65,502,347 | 0 | ||
Shares of Class A Common Stock issued in the Business Combination (in shares) | 65,502,347 | |||
Shares of Class V Common Stock issued to Legacy WMH equity holders (in shares) | 65,502,347 | |||
Total shares of common stock issued in the Business Combination (in shares) | 65,502,347 | 0 | ||
Common Shareholders | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Shares of common stock (in shares) | 24,988,563 | |||
Sponsor | Class A Common Stock | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Shares of common stock (in shares) | 6,250,000 | |||
Silver Spike | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Common stock, outstanding prior to Business Combination (in shares) | 24,998,575 | |||
Less: redemption of shares of Silver Spike's Class A common stock (in shares) | 10,012 | |||
Total shares of common stock issued in the Business Combination (in shares) | 24,998,575 |
Acquisitions - Sprout (Q3) (Det
Acquisitions - Sprout (Q3) (Details) - USD ($) | Sep. 03, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Estimated Assets Acquired: | |||||
Goodwill | $ 45,658,000 | $ 45,658,000 | $ 3,961,122 | $ 3,961,122 | |
Sprout | |||||
Asset Acquisition [Line Items] | |||||
Total consideration | $ 31,200,000 | ||||
Consideration Transferred: | |||||
Cash consideration | 12,000,000 | ||||
Share consideration | 19,186,000 | ||||
Total consideration | 31,186,000 | ||||
Estimated Assets Acquired: | |||||
Goodwill | 27,049,000 | ||||
Total asset acquired | $ 31,186,000 | ||||
Share consideration (in shares) | 1,244,258 | ||||
Share price (in dollars per share) | $ 15.42 | ||||
Transaction expenses | $ 800,000 | $ 800,000 | |||
Sprout | Software technology | |||||
Estimated Assets Acquired: | |||||
Intangibles | $ 1,976,000 | ||||
Sprout | Trade name | |||||
Estimated Assets Acquired: | |||||
Intangibles | 399,000 | ||||
Sprout | Customer relationships | |||||
Estimated Assets Acquired: | |||||
Intangibles | $ 1,762,000 |
Acquisitions - Transport Logist
Acquisitions - Transport Logistics Holding (Q3) (Details) - USD ($) | Sep. 29, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Estimated Assets Acquired: | ||||||
Goodwill | $ 45,658,000 | $ 45,658,000 | $ 3,961,122 | $ 3,961,122 | ||
Holdback amount | 1,000,000 | $ 0 | ||||
Transaction expenses | 274,000 | |||||
TLH | ||||||
Consideration Transferred: | ||||||
Cash consideration | $ 5,000,000 | |||||
Share consideration | 10,126,000 | |||||
Total consideration | 15,126,000 | |||||
Estimated Assets Acquired: | ||||||
Goodwill | 14,648,000 | |||||
Total asset acquired | $ 15,126,000 | |||||
Share consideration (in shares) | 694,540 | |||||
Share price (in dollars per share) | $ 14.58 | |||||
Transaction expenses | $ 600,000 | $ 600,000 | ||||
TLH | Software technology | ||||||
Estimated Assets Acquired: | ||||||
Intangibles | $ 249,000 | |||||
TLH | Trade name | ||||||
Estimated Assets Acquired: | ||||||
Intangibles | 59,000 | |||||
TLH | Customer relationships | ||||||
Estimated Assets Acquired: | ||||||
Intangibles | $ 170,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Q3) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in goodwill | |||||||
Beginning balance | $ 3,961,122 | $ 3,961,122 | $ 3,961,122 | ||||
Ending balance | $ 45,658,000 | $ 45,658,000 | $ 3,961,122 | $ 3,961,122 | |||
Total intangible assets | |||||||
Weighted Average Amortization Period (Years) | 10 years 6 months | 13 years 2 months 12 days | |||||
Gross Intangible Assets | 15,339,000 | $ 15,339,000 | $ 10,723,915 | 10,723,915 | |||
Accumulated Amortization | (6,893,000) | (6,893,000) | (6,219,507) | (5,320,959) | |||
Total intangible assets | 8,446,000 | 8,446,000 | 4,504,408 | 5,402,956 | |||
Amortization expense for intangible assets | 200,000 | $ 200,000 | 700,000 | $ 700,000 | 898,548 | 3,385,613 | $ 882,120 |
Estimated future amortization expense of intangible assets | |||||||
Remaining period in 2021 (three months) | 611,000 | 611,000 | |||||
Year ended December 31, 2022 | 2,057,000 | 2,057,000 | |||||
Year ended December 31, 2023 | 1,659,000 | 1,659,000 | |||||
Year ended December 31, 2024 | 1,442,000 | 1,442,000 | |||||
Year ended December 31, 2025 | 1,017,000 | 1,017,000 | |||||
Thereafter | 1,660,000 | 1,660,000 | |||||
Total intangible assets | 8,446,000 | $ 8,446,000 | $ 4,504,408 | 5,402,956 | |||
Trade and domain names | |||||||
Total intangible assets | |||||||
Weighted Average Amortization Period (Years) | 14 years 3 months 18 days | 15 years | |||||
Gross Intangible Assets | 7,713,000 | $ 7,713,000 | $ 7,255,381 | 7,255,381 | |||
Accumulated Amortization | (3,917,000) | (3,917,000) | (3,556,000) | ||||
Total intangible assets | 3,796,000 | 3,796,000 | 3,699,000 | ||||
Estimated future amortization expense of intangible assets | |||||||
Total intangible assets | 3,796,000 | $ 3,796,000 | $ 3,699,000 | ||||
Software technology | |||||||
Total intangible assets | |||||||
Weighted Average Amortization Period (Years) | 7 years 8 months 12 days | 9 years 4 months 24 days | |||||
Gross Intangible Assets | 5,694,000 | $ 5,694,000 | $ 3,468,534 | $ 3,468,534 | |||
Accumulated Amortization | (2,976,000) | (2,976,000) | (2,663,000) | ||||
Total intangible assets | 2,718,000 | 2,718,000 | 806,000 | ||||
Estimated future amortization expense of intangible assets | |||||||
Total intangible assets | 2,718,000 | $ 2,718,000 | $ 806,000 | ||||
Customer relationships | |||||||
Total intangible assets | |||||||
Weighted Average Amortization Period (Years) | 3 years 4 months 24 days | ||||||
Gross Intangible Assets | 1,932,000 | $ 1,932,000 | |||||
Accumulated Amortization | 0 | 0 | |||||
Total intangible assets | 1,932,000 | 1,932,000 | |||||
Estimated future amortization expense of intangible assets | |||||||
Total intangible assets | $ 1,932,000 | 1,932,000 | |||||
TLH | |||||||
Changes in goodwill | |||||||
Acquisition of | 14,648,000 | ||||||
Sprout | |||||||
Changes in goodwill | |||||||
Acquisition of | $ 27,049,000 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Q3) (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | |||
Accounts payable | $ 6,362,000 | $ 2,244,000 | |
Accrued employee expenses | 6,500,000 | 6,586,000 | |
Other accrued liabilities | 11,019,000 | 3,821,000 | |
Accounts payable and accrued expenses | $ 23,881,000 | $ 12,651,130 | $ 14,886,301 |
Warrant Liability (Q3) (Details
Warrant Liability (Q3) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 16, 2021 | Jun. 07, 2019 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Jun. 16, 2021 |
Derivative [Line Items] | ||||||||
Unit price (in dollars per share) | $ 11.50 | |||||||
Notice period to redeem warrants | 30 days | |||||||
Threshold trading days | 20 days | |||||||
Trading period | 30 days | |||||||
Change in fair value of warrant liability | $ 45,837 | $ 83,600 | $ 0 | $ 83,628 | $ 0 | |||
Common Stock | ||||||||
Derivative [Line Items] | ||||||||
Stock price trigger (in dollars per share) | $ 18 | |||||||
Public Warrants | ||||||||
Derivative [Line Items] | ||||||||
Warrants outstanding (in shares) | 12,499,933 | 12,499,933 | 12,499,933 | |||||
Units issued (in shares) | 12,500,000 | |||||||
Warrant redemption price (in dollars per share) | $ 0.01 | |||||||
Private Placement Warrant | ||||||||
Derivative [Line Items] | ||||||||
Warrants outstanding (in shares) | 7,000,000 | 7,000,000 | 7,000,000 | 7,000,000 | ||||
Number of ordinary shares called by each warrant (in shares) | 1 | 1 | 1 | |||||
Warrants issued (in shares) | 7,000,000 | |||||||
Limitation period to transfer, assign or sell warrants | 30 days | |||||||
Class A Common Stock | ||||||||
Derivative [Line Items] | ||||||||
Number of ordinary shares called by each warrant (in shares) | 1 | |||||||
Exercise price of warrant (in dollars per share) | $ 11.50 | $ 11.50 | $ 11.50 |
Equity (Q3) (Details)
Equity (Q3) (Details) | 3 Months Ended | |
Sep. 30, 2021voteshares | Jun. 15, 2021shares | |
Class of Stock [Line Items] | ||
Preferred stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Preferred stock, shares issued (in shares) | 0 | |
Preferred stock, shares outstanding (in shares) | 0 | |
WMH Units | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interests, percent of outstanding units held | 56.60% | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Votes per share | vote | 1 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Q3) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 16, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Period of exchange agreement | 180 days | ||||
Shares converted basis (in shares) | 1 | ||||
Share-based compensation expense | $ 4,192 | $ 23,600 | $ 23,625 | ||
Incremental expense | $ 4,100 | ||||
Class P Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested award, cost not yet recognized | 5,000 | 5,000 | $ 5,000 | ||
Nonvested award, period for recognition | 2 years 2 months 12 days | ||||
Share-based compensation expense | 700 | $ 20,100 | |||
Restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Nonvested award, cost not yet recognized | 51,900 | $ 51,900 | $ 51,900 | ||
Nonvested award, period for recognition | 3 years 9 months 18 days | ||||
Stock-based compensation expense | $ 3,500 | $ 3,500 | |||
Class V Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Class A Common Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Class A Common Stock | 2021 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | 19,209,986 | 19,209,986 | 19,209,986 | ||
Period of automatic increase of shares | 10 years | ||||
Percent of increase in shares from capital stock outstanding | 5.00% | 5.00% | 5.00% | ||
Number of shares available for future issuance (in shares) | 15,108,441 | 15,108,441 | 15,108,441 |
Stock-based Compensation - Clas
Stock-based Compensation - Class P Units Activity (Q3) (Details) - shares | Jun. 16, 2021 | Sep. 30, 2021 | Jun. 15, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Number of Units | |||||||
Recapitalization in connection with the Business Combination (in shares) | 25,687,126 | ||||||
Class A-3 and Class B Units | |||||||
Number of Units | |||||||
Outstanding beginning balance (in shares) | 262,249 | 274,816 | 274,816 | 264,077 | 245,371 | 252,241 | |
Repurchases (in shares) | (8,279) | (1,900) | (12,391) | ||||
Cancellations (in shares) | (4,288) | (1,611) | (7,284) | (38,604) | |||
Outstanding ending balance (in shares) | 262,249 | 274,816 | 264,077 | 245,371 | |||
Vested (in shares) | 234,114 | 207,398 | |||||
Class A-3 Units | |||||||
Number of Units | |||||||
Conversion to Class P Units in connection with the Business Combination (in shares) | (53,333) | ||||||
Class P Units | |||||||
Number of Units | |||||||
Cancellations (in shares) | (216,920) | ||||||
Outstanding ending balance (in shares) | 25,896,042 | 25,679,122 | 25,679,122 | ||||
Vested (in shares) | 23,197,454 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock Units Activity (Q3) (Details) - Restricted stock units | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of RSUs | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 4,112,855 |
Vested (in shares) | shares | (242,600) |
Forfeited (in shares) | shares | (11,310) |
Ending balance (in shares) | shares | 3,858,945 |
Weighted-average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 13.66 |
Vested (in dollars per share) | $ / shares | 13.70 |
Forfeited (in dollars per share) | $ / shares | 13.70 |
Ending balance (in dollars per share) | $ / shares | $ 13.66 |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock-Based Compensation Costs (Q3) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 4,192 | $ 23,600 | $ 23,625 | |
Stock-based compensation capitalized for software development | 695 | 695 | $ 0 | |
Total stock-based compensation cost | 4,887 | 24,320 | ||
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 689 | 4,515 | ||
Product development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1,865 | 3,859 | ||
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 1,638 | $ 15,251 |
Earnings Per Share - Computatio
Earnings Per Share - Computation (Q3) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 15, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||||||||||
Net income | $ 49,205,000 | $ 16,837,000 | $ 15,530,000 | $ 73,773,000 | $ 28,732,000 | $ 38,829,993 | $ (375,685) | $ 12,679,511 | ||
Less: net income attributable to WMH LLC prior to the Business Combination | 0 | $ 15,078,000 | ||||||||
Less: net income attributable to noncontrolling interests after the Business Combination | 28,370,000 | $ 33,597,000 | ||||||||
Net income attributable to WM Technology, Inc. - Basic | 20,835,000 | 25,098,000 | ||||||||
Effect of dilutive securities: | ||||||||||
Less: fair value change of Public and Private Placement Warrants, net of amounts attributable to noncontrolling interests | 19,618,000 | 35,679,000 | ||||||||
Net income (loss) attributable to WM Technology, Inc. - Diluted | $ 1,217,000 | $ (10,581,000) | ||||||||
Denominator: | ||||||||||
Weighted average common shares outstanding - basic (in shares) | 899,160 | 899,160 | 847,024 | |||||||
Restricted stock units1 | 95,939 | 0 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 899,160 | 899,160 | 847,024 | |||||||
Net income (loss) per share of Class A Common Stock: | ||||||||||
Basic income per share - Class A (in dollars per share) | $ 43.18 | $ (0.42) | $ 14.97 | |||||||
Diluted income (loss) per share - Class A (in dollars per share) | $ 43.18 | $ (0.42) | $ 14.97 | |||||||
Class A Common Stock | ||||||||||
Denominator: | ||||||||||
Weighted average common shares outstanding - basic (in shares) | 64,216,732 | 64,149,699 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 68,304,372 | 69,950,141 | ||||||||
Net income (loss) per share of Class A Common Stock: | ||||||||||
Basic income per share - Class A (in dollars per share) | $ 0.32 | $ 0.39 | ||||||||
Diluted income (loss) per share - Class A (in dollars per share) | $ 0.02 | $ (0.15) | ||||||||
Public Warrants | ||||||||||
Denominator: | ||||||||||
Warrants (in shares) | 2,558,783 | 3,718,232 | ||||||||
Private Placement Warrant | ||||||||||
Denominator: | ||||||||||
Warrants (in shares) | 1,432,918 | 2,082,210 |
Earnings Per Share - Dilutive S
Earnings Per Share - Dilutive Securities (Q3) (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Class A Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 65,502,347 | 65,502,347 |
Class P Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 25,679,122 | 25,679,122 |
Restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 3,858,945 |