| Cayman Islands (State or other jurisdiction of incorporation or organization) | | | 6770 (Primary standard industrial classification code number) | | | 98-1563709 (I.R.S. Employer Identification Number) | |
| Christian O. Nagler Marshall P. Shaffer, P.C. Eric L. Schiele, P.C. Kirkland & Ellis LLP 601 Lexington Avenue New York, New York 10022 (212) 446-4800 | | | Christopher J. Austin Paul Hastings LLP 200 Park Ave New York, New York 10166 (212) 318-6000 | | | Carl R. Sanchez Paul Hastings LLP 4747 Executive Drive, 12th Floor San Diego, CA 92121 (858) 458-3000 | |
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ Emerging growth company ☒ | |
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Title of Each Class of Securities to be Registered | | | | Amount to be Registered(4) | | | | Proposed Maximum Offering Price Per Security | | | | Proposed Maximum Aggregate Offering Price(1) | | | | Amount of Registration Fee | | | | | Amount to be Registered(4) | | | | Proposed Maximum Offering Price Per Security | | | | Proposed Maximum Aggregate Offering Price(1) | | | | Amount of Registration Fee(9) | | ||||||||||||||||||||||||
New Acorns Common Stock(1) | | | | | | 179,456,611 | | | | | | $ | 9.92(5) | | | | | | $ | 1,780,209,581 | | | | | | $ | 194,221(7) | | | | | | | | 179,456,611 | | | | | | $ | 9.92(5) | | | | | | $ | 1,780,209,581 | | | | | | $ | 194,221(7) | | |
New Acorns Common Stock issuable upon exercise of warrants (2) | | | | | | 16,766,625 | | | | | | $ | 11.50(6) | | | | | | $ | 192,816,188 | | | | | | $ | 21,037(7) | | | | | | | | 16,766,625 | | | | | | $ | 11.50(6) | | | | | | $ | 192,816,188 | | | | | | $ | 21,037(7) | | |
Warrants to purchase New Acorns Common Stock (3) | | | | | | 17,486,990 | | | | | | $ | — | | | | | | $ | — | | | | | | $ | — (8) | | | | | | | | 17,486,990 | | | | | | $ | — | | | | | | $ | — | | | | | | $ | —(8) | | |
Total | | | | | | 213,710,226 | | | | | | | | | | | | | $ | 1,973,025,769 | | | | | | $ | 215,258(7)(8) | | | | | | | | 213,710,226 | | | | | | | | | | | | | $ | 1,973,025,769 | | | | | | $ | 215,258(7)(8) | | |
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| ANNEX N SPONSOR LOCK-UP AGREEMENTS | | | N-1 | |
| | | No Redemption | | | Maximum Redemption | | ||||||||||||||||||
| | | Shares | | | Fully Diluted % | | | Shares | | | Fully Diluted % | | ||||||||||||
Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Acorns shareholders and preferred shareholders(2)(3) | | | | | 140,835,687 | | | | | | 66.0% | | | | | | 150,000,000 | | | | | | 77.1% | | |
Sponsor | | | | | 10,062,500 | | | | | | 4.7% | | | | | | 10,062,500 | | | | | | 5.2% | | |
PIPE shareholders | | | | | 16,500,000 | | | | | | 7.7% | | | | | | 16,500,000 | | | | | | 8.5% | | |
PIPE convertible notes(1) | | | | | 5,740,254 | | | | | | 2.7% | | | | | | 5,740,254 | | | | | | 3.0% | | |
Pioneer public shareholders | | | | | 40,250,000 | | | | | | 18.9% | | | | | | 11,959,900 | | | | | | 6.2% | | |
Total shares of common stock outstanding at closing of the Transaction | | | | | 213,388,441 | | | | | | 100.0% | | | | | | 194,262,654 | | | | | | 100.0% | | |
| | | Existing Governing Documents | | | Proposed Governing Documents | |
Authorized Shares (Governing Documents Proposal A) | | | The authorized share capital under the Existing Governing Documents is 500,000,000 Class A ordinary shares of par value $0.0001 per share, 50,000,000 Class B ordinary shares of par value $0.0001 per share and 5,000,000 preference shares of par value $0.0001 per share. | | | The Proposed Governing Documents will authorize 321,700,000 shares of New Acorns Common Stock par value $0.0001 per share and 100,000 shares of New Acorns Preferred Stock par value $0.0001 per share. | |
| | | See paragraph 5 of the Memorandum of Association. | | | See Article IV of the Proposed Certificate of Incorporation. | |
Authorize the Board of Directors to Issue Preferred Stock Without Shareholder Consent (Governing Documents Proposal B) | | | The Existing Governing Documents authorize the issuance of 5,000,000 preference shares with such designation, rights and preferences as may be determined from time to time by our board of directors. Accordingly, our board of directors is empowered under the Existing Governing Documents, without shareholder approval, to issue preference shares with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or | | | The Proposed Governing Documents authorize the board of directors to issue all or any shares of preferred stock in one or more series and to fix for each such series such voting powers, full or limited, and such designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as the board of directors may determine. | |
| | | Existing Governing Documents | | | Proposed Governing Documents | |
| | | other rights of the holders of ordinary shares. | | | | |
| | | See paragraph 5 of the Memorandum of Association and Article 3 of the Articles of Association. | | | | |
Shareholder/Shareholder Written Consent In Lieu of a Meeting (Governing Documents Proposal C) | | | The Existing Governing Documents provide that resolutions may be passed by a vote in person, by proxy at a general meeting, or by unanimous written resolution. | | | The Proposed Governing Documents allow shareholders to vote in person or by proxy at a meeting of shareholders, but prohibit the ability of shareholders to act by written consent in lieu of a meeting. | |
| | | See Articles I of our Articles of Association. | | | See Article II subsection 2.04 of the Proposed Bylaws and Article VII subsection (C) of the Proposed Certificate of Incorporation. | |
Corporate Name (Governing Documents Proposal D) | | | The Existing Governing Documents provide the name of the company is “Pioneer Merger Corp.” | | | The Proposed Governing Documents will provide that the name of the corporation will be “Acorns Holdings, Inc.” | |
| | | See paragraph 1 of our Memorandum of Association | | | See Article I of the Proposed Certificate of Incorporation. | |
Perpetual Existence (Governing Documents Proposal D) | | | The Existing Governing Documents provide that if Pioneer does not consummate a business combination (as defined in the Existing Governing Documents) by January 12, 2023 (twenty-four months after the closing of Pioneer’s initial public offering), Pioneer will cease all operations except for the purposes of winding up and will redeem the shares issued in Pioneer’s initial public offering and liquidate its trust account. | | | The Proposed Governing Documents do not include any provisions relating to New Acorns’ ongoing existence; the default under the DGCL will make New Acorns’ existence perpetual. | |
| | | See Article 49 subsection 49.7 of our Articles of Association. | | | This is the default rule under the DGCL | |
Exclusive Forum (Governing Documents Proposal D) | | | The Existing Governing Documents do not contain a provision adopting an exclusive forum for certain shareholder litigation | | | The Proposed Governing Documents adopt Delaware as the exclusive forum for certain shareholder litigation and the U.S. federal district courts as the exclusive forum for litigation arising out of the Securities Act. | |
| | | | | | See Article XI of the Proposed | |
| | | Existing Governing Documents | | | Proposed Governing Documents | |
| | | | | | Certificate of Incorporation. | |
Provisions Related to Status as Blank Check Company (Governing Documents Proposal D) | | | The Existing Governing Documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination | | | The Proposed Governing Documents do not include such provisions related to our status as a blank check |
company, which no longer will apply upon consummation of the Business Combination, as we will cease to be a blank check company at such time. | | ||||||
| | | See Article 49 of our Articles of Association. | | | | |
| | | For the Three Months ended March 31, 2021 | | | Period from October 21, 2020 (inception) through December 31, 2020 (audited) | | ||||||
Statement of Operations Data | | | | | | | | | | | | | |
General and administrative expenses | | | | $ | 308,408 | | | | | $ | 35,012 | | |
General and administrative expenses — related party | | | | | 54,788 | | | | | | — | | |
Loss from operations | | | | $ | 363,196 | | | | | $ | 35,012 | | |
Other Income (expenses) | | | | | | | | | | | | | |
Loss on excess of fair value over cash received for Private Placement warrants | | | | | (737,000) | | | | | | | | |
Change in fair value of derivative warrant liabilities | | | | | 8,583,830 | | | | | | | | |
Financing costs – derivative warrant liabilities | | | | | (1,080,020) | | | | | | | | |
Interest income from investments held in Trust Account | | | | | 8,602 | | | | | | | | |
Net Income | | | | $ | 6,412,216 | | | | | | | | |
Basic and diluted weighted average shares outstanding of Class A redeemable ordinary shares | | | | | 40,250,000 | | | | | | — | | |
Basic and diluted net income per share, Class A | | | | $ | 0.00 | | | | | | — | | |
Basic and diluted weighted average shares outstanding Class B non-redeemable ordinary shares | | | | | 9,902,083 | | | | | | 8,750,000 | | |
Basic and diluted net income (loss) per share, Class B | | | | $ | 0.65 | | | | | $ | (0.00) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands, except per share data) | | |||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | $ | 63,480 | | | | | $ | 39,646 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 16,131 | | | | | | 11,427 | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | | | | | 68,559 | | | | | | 76,910 | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | | | | | 33,741 | | | | | | 26,289 | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | | | | | 27,409 | | | | | | 29,734 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | | | | | 145,840 | | | | | | 144,360 | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | | | | | (82,360) | | | | | | (104,714) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | | | | | (3,106) | | | | | | (4,396) | | |
Loss before provision for income taxes | | | | | (46,019) | | | | | | (53,942) | | | | | | (85,466) | | | | | | (109,110) | | |
(Provision) benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | (6) | | | | | | (5) | | |
Net loss | | | | | (44,372) | | | | | | (53,942) | | | | | | (85,472) | | | | | | (109,115) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | | | | | (15,331) | | | | | | (11,648) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | | | | $ | (100,803) | | | | | $ | (120,763) | | |
Net loss per share attributable to common shareholders: | | | | | | ||||||||||||||||||||
Basic and diluted | | | | $ | (4.05) | | | | | $ | (5.15) | | | | | $ | (8.41) | | | | | $ | (10.77) | | |
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | ||||||||||||||||||||
Basic and diluted | | | | | 12,923 | | | | | | 11,897 | | | | | | 11,992 | | | | | | 11,216 | | |
| | | March 31, 2021 | | | September 30, 2020 | | | September 30, 2019 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total current assets | | | | $ | 172,119 | | | | | $ | 128,616 | | | | | $ | 140,043 | | |
Total assets | | | | | 188,149 | | | | | | 137,316 | | | | | | 150,037 | | |
Total current liabilities | | | | | 90,792 | | | | | | 56,275 | | | | | | 38,396 | | |
Total liabilities | | | | | 170,639 | | | | | | 87,604 | | | | | | 45,084 | | |
Working capital | | | | | 81,327 | | | | | | 72,341 | | | | | | 101,647 | | |
Redeemable convertible preferred stock | | | | | 367,514 | | | | | | 359,513 | | | | | | 319,182 | | |
Total shareholders’ deficit | | | | | (350,004) | | | | | | (309,801) | | | | | | (214,229) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Statement of Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities | | | | $ | (14,867) | | | | | $ | (28,922) | | | | | $ | (45,289) | | | | | $ | (72,895) | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | | | | | (685) | | | | | | (2,463) | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | | | | | 23,126 | | | | | | 103,230 | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 35,343 | | | | | $ | (29,322) | | | | | $ | (22,848) | | | | | $ | 27,872 | | |
| | | Pro Forma Combined(1) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined | | | (Assuming No Redemptions) | | | (Assuming Maximum Redemptions) | | ||||||
(in thousands, except share data) | | | | | | | | | | | | | |
Statement of Operations Data | | | | | | | | | | | | | |
As of and for the six months ended March 31, 2021 | | | | | | | | | | | | | |
Revenue | | | | $ | 47,220 | | | | | $ | 47,220 | | |
Net loss per common share – basic and diluted | | | | $ | (0.18) | | | | | $ | (0.20) | | |
Weighted-average common stock outstanding – basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | |
As of and for the fiscal year ended September 30, 2020 | | | | | | | | | | | | | |
Revenue | | | | $ | 63,480 | | | | | $ | 63,480 | | |
Net loss per common share – basic and diluted | | | | $ | (0.40) | | | | | $ | (0.44) | | |
Weighted-average common stock outstanding – basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | |
Summary Unaudited Pro Forma Condensed Combined | | | | | | | | | | | | | |
As of the six months ended March 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 637,978 | | | | | $ | 446,720 | | |
Total liabilities | | | | $ | 112,812 | | | | | $ | 112,812 | | |
Total shareholders’ deficit | | | | $ | 525,166 | | | | | $ | 333,908 | | |
| | | Historical | | | Pro Forma Combined | | | Acorns Equivalent Pro Forma Per Share Data(4) | | |||||||||||||||||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||||||||||||||
As of and for the six months ended March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Common Stock – basic and diluted(2) | | | | $ | (4.05) | | | | | | | | | | | $ | (0.18) | | | | | $ | (0.20) | | | | | $ | (0.31) | | | | | $ | (0.34) | | |
Book value per share – Common Stock – basic and diluted(1) | | | | $ | (27.08) | | | | | | | | | | | $ | 2.46 | | | | | $ | 1.72 | | | | | $ | 4.32 | | | | | $ | 3.02 | | |
Weighted Average shares outstanding – Common Stock – basic and diluted | | | | | 12,922,640 | | | | | | | | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | N/A | | | | | | N/A | | |
Net loss per share – Class A Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class A Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class A Ordinary Shares – basic and diluted | | | | | | | | | | | 40,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income per share – Class B Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class B Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class B Ordinary Shares – basic and diluted | | | | | | | | | | | 9,398,047 | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of and for the fiscal year ended September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Common Stock – basic and diluted(2) | | | | $ | (8.41) | | | | | | | | | | | $ | (0.40) | | | | | $ | (0.44) | | | | | $ | (0.71) | | | | | $ | (0.78) | | |
Book value per share – Common Stock – basic and diluted(3) | | | | $ | (25.83) | | | | | | | | | | | | N/A(3) | | | | | | N/A(3) | | | | | | N/A(3) | | | | | | N/A(3) | | |
Weighted Average shares outstanding – Common Stock – basic and diluted | | | | | 11,992,015 | | | | | | | | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | N/A | | | | | | N/A | | |
Net loss per share – Class A Ordinary Shares- basic and diluted(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class A Ordinary Shares – basic and diluted(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class A Ordinary Shares – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Class B Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class B Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class B Ordinary Shares – basic and diluted | | | | | | | | | | | 8,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | No Redemption | | Maximum Redemption | | | No Redemption | | Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||
| | Shares | | Fully Diluted % | | Shares | | Fully Diluted % | | | Shares | | Fully Diluted % | | Shares | | Fully Diluted % | | ||||||||||||||||||||||||||||||||
Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Former Acorns shareholders and preferred shareholders(2) (3) | | | | 140,835,687 | | | | | 66.0% | | | | | 150,000,000 | | | | | 77.1% | | | |||||||||||||||||||||||||||||
Former Acorns shareholders and preferred shareholders (2)(3) | | | | 140,835,687 | | | | | 66.0% | | | | | 150,000,000 | | | | | 77.1% | | | |||||||||||||||||||||||||||||
Sponsor | | | | 10,062,500 | | | | | 4.7% | | | | | 10,062,500 | | | | | 5.2% | | | | | | 10,062,500 | | | | | 4.7% | | | | | 10,062,500 | | | | | 5.2% | | | ||||||||
PIPE shareholders | | | | 16,500,000 | | | | | 7.7% | | | | | 16,500,000 | | | | | 8.5% | | | | | | 16,500,000 | | | | | 7.7% | | | | | 16,500,000 | | | | | 8.5% | | | ||||||||
PIPE convertible notes(1) | | | | 5,740,254 | | | | | 2.7% | | | | | 5,740,254 | | | | | 3.0% | | | | | | 5,740,254 | | | | | 2.7% | | | | | 5,740,254 | | | | | 3.0% | | | ||||||||
Pioneer public shareholders | | | | 40,250,000 | | | | | 18.9% | | | | | 11,959,900 | | | | | 6.2% | | | | | | 40,250,000 | | | | | 18.9% | | | | | 11,959,900 | | | | | 6.2% | | | ||||||||
Total shares of common stock outstanding at closing of the Transaction | | | | 213,388,441 | | | | | 100.0% | | | | | 194,262,654 | | | | | 100.0% | | | | | | 213,388,441 | | | | | 100.0% | | | | | 194,262,654 | | | | | 100.0% | | |
| | | As of March 31, 2021 | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 81,142 | | | | | $ | 392 | | | | | $ | 402,509 | | | | 3A | | | | $ | 531,142 | | | | | $ | 402,509 | | | | 3A | | | | $ | 339,884 | | |
| | | | | | | | | | | | | | | | | 165,000 | | | | 3D | | | | | | | | | | | 165,000 | | | | 3D | | | | | | | |
| | | | | | | | | | | | | | | | | (26,258) | | | | 3H | | | | | | | | | | | (26,258) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | (91,643) | | | | 3I | | | | | | | | | | | (282,901) | | | | 3B | | | | | | | |
Restricted cash | | | | | 1,727 | | | | | | — | | | | | | — | | | | | | | | | 1,727 | | | | | | — | | | | | | | | | 1,727 | | |
Receivable from clearing organization | | | | | 54,216 | | | | | | — | | | | | | — | | | | | | | | | 54,216 | | | | | | — | | | | | | | | | 54,216 | | |
Accounts receivable, net | | | | | 6,129 | | | | | | — | | | | | | — | | | | | | | | | 6,129 | | | | | | — | | | | | | | | | 6,129 | | |
Prepaid expenses – related party | | | | | 16,446 | | | | | | — | | | | | | — | | | | | | | | | 16,446 | | | | | | — | | | | | | | | | 16,446 | | |
Prepaid expenses and other current assets | | | | | 12,459 | | | | | | 809 | | | | | | (980) | | | | 3H | | | | | 12,288 | | | | | | (980) | | | | 3H | | | | | 12,288 | | |
Total current assets | | | | | 172,119 | | | | | | 1,201 | | | | | | 448,628 | | | | | | | | | 621,948 | | | | | | 257,370 | | | | | | | | | 430,690 | | |
Property and equipment, net | | | | | 6,785 | | | | | | — | | | | | | — | | | | | | | | | 6,785 | | | | | | — | | | | | | | | | 6,785 | | |
Other non-current assets | | | | | 9,245 | | | | | | — | | | | | | — | | | | | | | | | 9,245 | | | | | | — | | | | | | | | | 9,245 | | |
Cash and marketable securities held in Trust Account | | | | | — | | | | | | 402,509 | | | | | | (402,509) | | | | 3A | | | | | — | | | | | | (402,509) | | | | 3A | | | | | — | | |
Total assets | | | | $ | 188,149 | | | | | $ | 403,710 | | | | | $ | 46,119 | | | | | | | | $ | 637,978 | | | | | $ | (145,139) | | | | | | | | $ | 446,720 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 15,813 | | | | | $ | 221 | | | | | $ | — | | | | | | | | $ | 16,034 | | | | | $ | — | | | | | | | | $ | 16,034 | | |
Payable to customers | | | | | 54,959 | | | | | | — | | | | | | — | | | | | | | | | 54,959 | | | | | | — | | | | | | | �� | | 54,959 | | |
Other current liabilities | | | | | 20,020 | | | | | | — | | | | | | — | | | | | | | | | 20,020 | | | | | | — | | | | | | | | | 20,020 | | |
Total current liabilities | | | | | 90,792 | | | | | | 221 | | | | | | — | | | | | | | | | 91,013 | | | | | | — | | | | | | | | | 91,013 | | |
Convertible notes payable, net | | | | | 72,078 | | | | | | — | | | | | | (72,078) | | | | 3E | | | | | — | | | | | | (72,078) | | | | 3E | | | | | — | | |
Other non-current liabilities | | | | | 7,769 | | | | | | — | | | | | | (2,702) | | | | 3E | | | | | 5,067 | | | | | | (2,702) | | | | 3E | | | | | 5,067 | | |
Deferred underwriting commissions | | | | | | | | | | | 14,088 | | | | | | (14,088) | | | | 3H | | | | | — | | | | | | (14,088) | | | | 3H | | | | | — | | |
Warrant liability | | | | | | | | | | | 20,986 | | | | | | (4,254) | | | | 3J | | | | | 16,732 | | | | | | (4,254) | | | | 3J | | | | | 16,732 | | |
Total liabilities | | | | | 170,639 | | | | | | 35,295 | | | | | | (93,122) | | | | | | | | | 112,812 | | | | | | (93,122) | | | | | | | | | 112,812 | | |
Redeemable preferred stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Convertible preferred stock – Series E-2; $0.001 par value | | | | | 26,192 | | | | | | — | | | | | | (26,192) | | | | 3F | | | | | — | | | | | | (26,192) | | | | 3F | | | | | — | | |
Convertible preferred stock – Series E-1; $0.001 par value | | | | | 211,968 | | | | | | — | | | | | | (211,968) | | | | 3F | | | | | — | | | | | | (211,968) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series D-1; $0.001 par value | | | | | 30,187 | | | | | | — | | | | | | (30,187) | | | | 3F | | | | | — | | | | | | (30,187) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series D; $0.001 par value | | | | | 54,963 | | | | | | — | | | | | | (54,963) | | | | 3F | | | | | — | | | | | | (54,963) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series C; $0.001 par value | | | | | 33,836 | | | | | | — | | | | | | (33,836) | | | | 3F | | | | | — | | | | | | (33,836) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series B; $0.001 par value | | | | | 7,150 | | | | | | — | | | | | | (7,150) | | | | 3F | | | | | — | | | | | | (7,150) | | | | 3F | | | | | — | | |
| | | As of March 31, 2021 | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Convertible preferred stock — Series A; $0.001 par value | | | | | 3,218 | | | | | | — | | | | | | (3,218) | | | | 3F | | | | | — | | | | | | (3,218) | | | | 3F | | | | | — | | |
Common stock subject to possible redemption | | | | | — | | | | | | 363,415 | | | | | | (363,415) | | | | 3C | | | | | — | | | | | | (363,415) | | | | 3C | | | | | — | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acorns Common stock — $0.001 par value | | | | | 13 | | | | | | — | | | | | | (13) | | | | 3G | | | | | — | | | | | | (13) | | | | 3G | | | | | — | | |
Pioneer Common Stock, $.0001 par value | | | | | — | | | | | | — | | | | | | 2 | | | | 3D | | | | | 25 | | | | | | 2 | | | | 3D | | | | | 23 | | |
| | | | | | | | | | | | | | | | | 5 | | | | 3C | | | | | | | | | | | 5 | | | | 3C | | | | | | | |
| | | | | | | | | | | | | | | | | 6 | | | | 3F | | | | | | | | | | | 6 | | | | 3F | | | | | | | |
| | | | | | | | | | | | | | | | | 13 | | | | 3G | | | | | | | | | | | 13 | | | | 3G | | | | | | | |
| | | | | | | | | | | | | | | | | (1) | | | | 3I | | | | | | | | | | | (3) | | | | 3B | | | |||||
Pioneer Class A Ordinary shares, $0.0001 par value | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Pioneer Class B Ordinary shares, $0.0001 par value | | | | | — | | | | | | 1 | | | | | | (1) | | | | 3C | | | | | — | | | | | | (1) | | | | 3C | | | | | — | | |
Additional paid-in capital | | | | | 4,168 | | | | | | — | | | | | | 164,998 | | | | 3D | | | | | 878,372 | | | | | | 164,998 | | | | 3D | | | | | 687,116 | | |
| | | | | | | | | | | | | | | | | 363,411 | | | | 3C | | | | | | | | | | | 363,411 | | | | 3C | | | | | | | |
| | | | | | | | | | | | | | | | | 367,508 | | | | 3F | | | | | | | | | | | 367,508 | | | | 3F | | | | | | | |
| | | | | | | | | | | | | | | | | 4,999 | | | | 3G | | | | | | | | | | | 4,999 | | | | 3G | | | | | | | |
| | | | | | | | | | | | | | | | | 74,780 | | | | 3E | | | | | | | | | | | 74,780 | | | | 3E | | | | | | | |
| | | | | | | | | | | | | | | | | (9,850) | | | | 3H | | | | | | | | | | | (9,850) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | (91,642) | | | | 3I | | | | | | | | | | | (282,898) | | | | 3B | | | | | | | |
Accumulated deficit | | | | | (354,185) | | | | | | 4,999 | | | | | | (4,999) | | | | 3G | | | | | (353,231) | | | | | | (4,999) | | | | 3G | | | | | (353,231) | | |
| | | | | | | | | | | | | | | | | (3,300) | | | | 3H | | | | | | | | | | | (3,300) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | 4,254 | | | | 3J | | | | | | | | | | | 4,254 | | | | 3J | | | | | | | |
Accumulated other comprehensive loss | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Total shareholders’ equity (deficit) | | | | | (350,004) | | | | | | 5,000 | | | | | | 870,170 | | | | | | | | | 525,166 | | | | | | 678,912 | | | | | | | | | 333,908 | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ equity (deficit) | | | | $ | 188,149 | | | | | $ | 403,710 | | | | | $ | 46,119 | | | | | | | | $ | 637,978 | | | | | $ | (145,139) | | | | | | | | $ | 446,720 | | |
|
| | | For the Six Month Period ended March 31, 2021 | | | For the Period from October 21, 2020 (inception) through March 31, 2021 | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | For the Six Month Period ended March 31, 2021 | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | For the Six Month Period ended March 31, 2021 | | ||||||||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 47,220 | | | | | $ | — | | | | | | | | $ | 47,220 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | — | | | | | | — | | | | | | | | | 8,335 | | | | | | — | | | | | | | | | 8,335 | | |
Sales and marketing | | | | | 47,365 | | | | | | — | | | | | | — | | | | | | | | | 47,365 | | | | | | — | | | | | | | | | 47,365 | | |
Research and development | | | | | 17,361 | | | | | | — | | | | | | — | | | | | | | | | 17,361 | | | | | | — | | | | | | | | | 17,361 | | |
General and administrative | | | | | 24,651 | | | | | | 398 | | | | | | 3,300 | | | | 3CC | | | | | 28,349 | | | | | | 3,300 | | | | 3CC | | | | | 28,349 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 398 | | | | | | 3,300 | | | | | | | | | 101,410 | | | | | | 3,300 | | | | | | | | | 101,410 | | |
Loss from operations | | | | | (50,492) | | | | | | (398) | | | | | | (3,300) | | | | | | | | | (54,190) | | | | | | (3,300) | | | | | | | | | (54,190) | | |
Loss on excess of fair value over cash received for private placement warrants | | | | | — | | | | | | (737) | | | | | | | | | | | | | | | (737) | | | | | | — | | | | | | | | | (737) | | |
Change in fair value of derivative warrant liabilities | | | | | — | | | | | | 8,584 | | | | | | 4,254 | | | | 3EE | | | | | 12,838 | | | | | | 4,254 | | | | 3EE | | | | | 12,838 | | |
Financing costs — derivative warrant liabilities | | | | | — | | | | | | (1,080) | | | | | | — | | | | | | | | | (1,080) | | | | | | — | | | | | | | | | (1,080) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | — | | | | | | (906) | | | | 3BB | | | | | 3,567 | | | | | | (906) | | | | 3BB | | | | | 3,567 | | |
Interest earned on marketable securities held in Trust Account | | | | | — | | | | | | 9 | | | | | | (9) | | | | 3AA | | | | | — | | | | | | (9) | | | | 3AA | | | | | — | | |
Income (loss) before provision for income taxes | | | | | (46,019) | | | | | | 6,378 | | | | | | 39 | | | | | | | | | (39,602) | | | | | | 39 | | | | | | | | | (39,602) | | |
Benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | — | | | | 3DD | | | | | 1,647 | | | | | | — | | | | 3DD | | | | | 1,647 | | |
Net income (loss) | | | | $ | (44,372) | | | | | $ | 6,378 | | | | | $ | 39 | | | | | | | | $ | (37,955) | | | | | $ | 39 | | | | | | | | $ | (37,955) | | |
Undistributed accumulated dividends on preferred stock | | | | $ | (8,001) | | | | | | | | | | | $ | 8,001 | | | | 3FF | | | | $ | — | | | | | $ | 8,001 | | | | 3FF | | | | $ | — | | |
Net income (loss) attributable to common shareholders | | | | $ | (52,373) | | | | | $ | 6,378 | | | | | $ | 8,040 | | | | | | | | $ | (37,955) | | | | | $ | 8,040 | | | | | | | | $ | (37,955) | | |
Net loss per share of common stock – basic and diluted | | | | $ | (4.05) | | | | | | | | | | | | | | | | | | | | $ | (0.18) | | | | | | | | | | | | | | $ | (0.20) | | |
Weighted average shares of common stock outstanding – basic and diluted | | | | | 12,922,640 | | | | | | | | | | | | | | | | | | | | | 213,388,441 | | | | | | | | | | | | | | | 194,262,654 | | |
Basic and diluted net loss per ordinary share – Class A | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class A | | | | | | | | | | | 40,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income per ordinary share – Class B | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class B | | | | | | | | | | | 9,398,047 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended September 30, 2020 | | | For the period from October 21, 2020 (inception) through December 31, 2020 | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | | | | | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | | | | | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||
Revenue | | | | $ | 63,480 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 63,480 | | | | | $ | — | | | | | | | | $ | 63,480 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 16,131 | | | | | | — | | | | | | — | | | | | | | | | 16,131 | | | | | | — | | | | | | | | | 16,131 | | |
Sales and marketing | | | | | 68,559 | | | | | | — | | | | | | — | | | | | | | | | 68,559 | | | | | | — | | | | | | | | | 68,559 | | |
Research and development | | | | | 33,741 | | | | | | — | | | | | | — | | | | | | | | | 33,741 | | | | | | — | | | | | | | | | 33,741 | | |
General and administrative | | | | | 27,409 | | | | | | 35 | | | | | | 3,300 | | | | 3CC | | | | | 30,744 | | | | | | 3,300 | | | | 3CC | | | | | 30,744 | | |
Total costs and expenses | | | | | 145,840 | | | | | | 35 | | | | | | 3,300 | | | | | | | | | 149,175 | | | | | | 3,300 | | | | | | | | | 149,175 | | |
Loss from operations | | | | | (82,360) | | | | | | (35) | | | | | | (3,300) | | | | | | | | | (85,695) | | | | | | (3,300) | | | | | | | | | (85,695) | | |
Interest and other income (expense), net | | | | | (3,106) | | | | | | — | | | | | | 2,887 | | | | 3BB | | | | | (219) | | | | | | 2,887 | | | | 3BB | | | | | (219) | | |
Loss before provision for income taxes | | | | | (85,466) | | | | | | (35) | | | | | | (413) | | | | | | | | | (85,914) | | | | | | (413) | | | | | | | | | (85,914) | | |
Provision for income tax | | | | | (6) | | | | | | — | | | | | | — | | | | 3DD | | | | | (6) | | | | | | — | | | | 3DD | | | | | (6) | | |
Net loss | | | | $ | (85,472) | | | | | $ | (35) | | | | | $ | (413) | | | | | | | | $ | (85,920) | | | | | $ | (413) | | | | | | | | $ | (85,920) | | |
Undistributed accumulated dividends on preferred stock | | | | $ | (15,331) | | | | | | | | | | | $ | 15,331 | | | | 3FF | | | | $ | — | | | | | $ | 15,331 | | | | 3FF | | | | $ | — | | |
Net loss attributable to common shareholders | | | | $ | (100,803) | | | | | $ | (35) | | | | | $ | 14,918 | | | | | | | | $ | (85,920) | | | | | $ | 14,918 | | | | | | | | $ | (85,920) | | |
Net loss per share of common stock – basic and diluted | | | | $ | (8.41) | | | | | | | | | | | | | | | | | | | | $ | (0.40) | | | | | | | | | | | | | | $ | (0.44) | | |
Weighted average shares of common stock outstanding – basic and diluted | | | | | 11,992,015 | | | | | | | | | | | | | | | | | | | | | 213,388,441 | | | | | | | | | | | | | | | 194,262,654 | | |
Basic and diluted net loss per ordinary share – Class A | | | | | | | | | | | N/A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class A | | | | | | | | | | | N/A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per ordinary share – Class B | | | | | | | | | | $ | (0.00) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class B | | | | | | | | | | | 8,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended March 31, 2021 | | | Fiscal year ended September 30, 2020 | | ||||||||||||||||||
(in thousands, except share data) | | | No Redemption | | | Maximum Redemption | | | No Redemption | | | Maximum Redemption | | ||||||||||||
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss | | | | $ | (37,955) | | | | | $ | (37,955) | | | | | $ | (85,920) | | | | | $ | (85,920) | | |
Denominator | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Acorns shareholders and preferred shareholders | | | | | 140,835,687 | | | | | | 150,000,000 | | | | | | 140,835,687 | | | | | | 150,000,000 | | |
Sponsor | | | | | 10,062,500 | | | | | | 10,062,500 | | | | | | 10,062,500 | | | | | | 10,062,500 | | |
PIPE shareholders | | | | | 16,500,000 | | | | | | 16,500,000 | | | | | | 16,500,000 | | | | | | 16,500,000 | | |
PIPE convertible notes(1) | | | | | 5,740,254 | | | | | | 5,740,254 | | | | | | 5,740,254 | | | | | | 5,740,254 | | |
Pioneer public shareholders | | | | | 40,250,000 | | | | | | 11,959,900 | | | | | | 40,250,000 | | | | | | 11,959,900 | | |
Weighted-average shares − basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | 213,388,441 | | | | | | 194,262,654 | | |
Net loss per share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (0.18) | | | | | $ | (0.20) | | | | | $ | (0.40) | | | | | $ | (0.44) | | |
| | | For the Three Months ended March 31, 2021 | | | Period from October 21, 2020 (inception) through December 31, 2020 (audited) | | ||||||
Statement of Operations Data | | | | | | | | | | | | | |
General and administrative expenses | | | | $ | 308,408 | | | | | $ | 35,012 | | |
General and administrative expenses — related party | | | | | 54,788 | | | | | | — | | |
Loss from operations | | | | $ | 363,196 | | | | | $ | 35,012 | | |
Other Income (expenses) | | | | | | | | | | | | | |
Loss on excess of fair value over cash received for Private Placement warrants | | | | | (737,000) | | | | | | | | |
Change in fair value of derivative warrant liabilities | | | | | 8,583,830 | | | | | | | | |
Financing costs – derivative warrant liabilities | | | | | (1,080,020) | | | | | | | | |
Interest income from investments held in Trust Account | | | | | 8,602 | | | | | | | | |
Net Income | | | | $ | 6,412,216 | | | | | | | | |
Basic and diluted weighted average shares outstanding of Class A redeemable ordinary shares | | | | | 40,250,000 | | | | | | — | | |
Basic and diluted net income per share, Class A | | | | $ | 0.00 | | | | | | — | | |
Basic and diluted weighted average shares outstanding Class B non-redeemable ordinary shares | | | | | 9,902,083 | | | | | | 8,750,000 | | |
Basic and diluted net income (loss) per share, Class B | | | | $ | 0.65 | | | | | $ | (0.00) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands, except per share data) | | |||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | $ | 63,480 | | | | | $ | 39,646 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 16,131 | | | | | | 11,427 | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | | | | | 68,559 | | | | | | 76,910 | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | | | | | 33,741 | | | | | | 26,289 | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | | | | | 27,409 | | | | | | 29,734 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | | | | | 145,840 | | | | | | 144,360 | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | | | | | (82,360) | | | | | | (104,714) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | | | | | (3,106) | | | | | | (4,396) | | |
Loss before provision for income taxes | | | | | (46,019) | | | | | | (53,942) | | | | | | (85,466) | | | | | | (109,110) | | |
(Provision) benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | (6) | | | | | | (5) | | |
Net loss | | | | | (44,372) | | | | | | (53,942) | | | | | | (85,472) | | | | | | (109,115) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | | | | | (15,331) | | | | | | (11,648) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | | | | $ | (100,803) | | | | | $ | (120,763) | | |
Net loss per share attributable to common shareholders: | | | | | | ||||||||||||||||||||
Basic and diluted | | | | $ | (4.05) | | | | | $ | (5.15) | | | | | $ | (8.41) | | | | | $ | (10.77) | | |
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | ||||||||||||||||||||
Basic and diluted | | | | | 12,923 | | | | | | 11,897 | | | | | | 11,992 | | | | | | 11,216 | | |
| | | March 31, 2021 | | | September 30, 2020 | | | September 30, 2019 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total current assets | | | | $ | 172,119 | | | | | $ | 128,616 | | | | | $ | 140,043 | | |
Total assets | | | | | 188,149 | | | | | | 137,316 | | | | | | 150,037 | | |
Total current liabilities | | | | | 90,792 | | | | | | 56,275 | | | | | | 38,396 | | |
Total liabilities | | | | | 170,639 | | | | | | 87,604 | | | | | | 45,084 | | |
Working capital | | | | | 81,327 | | | | | | 72,341 | | | | | | 101,647 | | |
Redeemable convertible preferred stock | | | | | 367,514 | | | | | | 359,513 | | | | | | 319,182 | | |
Total shareholders’ deficit | | | | | (350,004) | | | | | | (309,801) | | | | | | (214,229) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Statement of Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities | | | | $ | (14,867) | | | | | $ | (28,922) | | | | | $ | (45,289) | | | | | $ | (72,895) | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | | | | | (685) | | | | | | (2,463) | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | | | | | 23,126 | | | | | | 103,230 | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 35,343 | | | | | $ | (29,322) | | | | | $ | (22,848) | | | | | $ | 27,872 | | |
| | | Pro Forma Combined(1) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined | | | (Assuming No Redemptions) | | | (Assuming Maximum Redemptions) | | ||||||
(in thousands, except share data) | | | | | | | | | | | | | |
Statement of Operations Data | | | | | | | | | | | | | |
As of and for the six months ended March 31, 2021 | | | | | | | | | | | | | |
Revenue | | | | $ | 47,220 | | | | | $ | 47,220 | | |
Net loss per common share – basic and diluted | | | | $ | (0.18) | | | | | $ | (0.20) | | |
Weighted-average common stock outstanding – basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | |
As of and for the fiscal year ended September 30, 2020 | | | | | | | | | | | | | |
Revenue | | | | $ | 63,480 | | | | | $ | 63,480 | | |
Net loss per common share – basic and diluted | | | | $ | (0.40) | | | | | $ | (0.44) | | |
Weighted-average common stock outstanding – basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | |
Summary Unaudited Pro Forma Condensed Combined | | | | | | | | | | | | | |
As of the six months ended March 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 637,978 | | | | | $ | 446,720 | | |
Total liabilities | | | | $ | 112,812 | | | | | $ | 112,812 | | |
Total shareholders’ deficit | | | | $ | 525,166 | | | | | $ | 333,908 | | |
| | | Historical | | | Pro Forma Combined | | | Acorns Equivalent Pro Forma Per Share Data(4) | | |||||||||||||||||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||||||||||||||
As of and for the six months ended March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Common Stock – basic and diluted(2) | | | | $ | (4.05) | | | | | | | | | | | $ | (0.18) | | | | | $ | (0.20) | | | | | $ | (0.31) | | | | | $ | (0.34) | | |
Book value per share – Common Stock – basic and diluted(1) | | | | $ | (27.08) | | | | | | | | | | | $ | 2.46 | | | | | $ | 1.72 | | | | | $ | 4.32 | | | | | $ | 3.02 | | |
Weighted Average shares outstanding – Common Stock – basic and diluted | | | | | 12,922,640 | | | | | | | | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | N/A | | | | | | N/A | | |
Net loss per share – Class A Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class A Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class A Ordinary Shares – basic and diluted | | | | | | | | | | | 40,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income per share – Class B Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class B Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class B Ordinary Shares – basic and diluted | | | | | | | | | | | 9,398,047 | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of and for the fiscal year ended September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Common Stock – basic and diluted(2) | | | | $ | (8.41) | | | | | | | | | | | $ | (0.40) | | | | | $ | (0.44) | | | | | $ | (0.71) | | | | | $ | (0.78) | | |
Book value per share – Common Stock – basic and diluted(3) | | | | $ | (25.83) | | | | | | | | | | | | N/A(3) | | | | | | N/A(3) | | | | | | N/A(3) | | | | | | N/A(3) | | |
Weighted Average shares outstanding – Common Stock – basic and diluted | | | | | 11,992,015 | | | | | | | | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | N/A | | | | | | N/A | | |
Net loss per share – Class A Ordinary Shares- basic and diluted(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class A Ordinary Shares – basic and diluted(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class A Ordinary Shares – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Class B Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class B Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class B Ordinary Shares – basic and diluted | | | | | | | | | | | 8,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | No Redemption | | | Maximum Redemption | | ||||||||||||||||||
| | | Shares | | | Fully Diluted % | | | Shares | | | Fully Diluted % | | ||||||||||||
Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Acorns shareholders and preferred shareholders(2)(3) | | | | | 140,835,687 | | | | | | 66.0% | | | | | | 150,000,000 | | | | | | 77.1% | | |
Sponsor | | | | | 10,062,500 | | | | | | 4.7% | | | | | | 10,062,500 | | | | | | 5.2% | | |
PIPE shareholders | | | | | 16,500,000 | | | | | | 7.7% | | | | | | 16,500,000 | | | | | | 8.5% | | |
PIPE convertible notes(1) | | | | | 5,740,254 | | | | | | 2.7% | | | | | | 5,740,254 | | | | | | 3.0% | | |
Pioneer public shareholders | | | | | 40,250,000 | | | | | | 18.9% | | | | | | 11,959,900 | | | | | | 6.2% | | |
Total shares of common stock outstanding at closing of the Transaction | | | | | 213,388,441 | | | | | | 100.0% | | | | | | 194,262,654 | | | | | | 100.0% | | |
| | | As of March 31, 2021 | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 81,142 | | | | | $ | 392 | | | | | $ | 402,509 | | | | 3A | | | | $ | 531,142 | | | | | $ | 402,509 | | | | 3A | | | | $ | 339,884 | | |
| | | | | | | | | | | | | | | | | 165,000 | | | | 3D | | | | | | | | | | | 165,000 | | | | 3D | | | | | | | |
| | | | | | | | | | | | | | | | | (26,258) | | | | 3H | | | | | | | | | | | (26,258) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | (91,643) | | | | 3I | | | | | | | | | | | (282,901) | | | | 3B | | | | | | | |
Restricted cash | | | | | 1,727 | | | | | | — | | | | | | — | | | | | | | | | 1,727 | | | | | | — | | | | | | | | | 1,727 | | |
Receivable from clearing organization | | | | | 54,216 | | | | | | — | | | | | | — | | | | | | | | | 54,216 | | | | | | — | | | | | | | | | 54,216 | | |
Accounts receivable, net | | | | | 6,129 | | | | | | — | | | | | | — | | | | | | | | | 6,129 | | | | | | — | | | | | | | | | 6,129 | | |
Prepaid expenses – related party | | | | | 16,446 | | | | | | — | | | | | | — | | | | | | | | | 16,446 | | | | | | — | | | | | | | | | 16,446 | | |
Prepaid expenses and other current assets | | | | | 12,459 | | | | | | 809 | | | | | | (980) | | | | 3H | | | | | 12,288 | | | | | | (980) | | | | 3H | | | | | 12,288 | | |
Total current assets | | | | | 172,119 | | | | | | 1,201 | | | | | | 448,628 | | | | | | | | | 621,948 | | | | | | 257,370 | | | | | | | | | 430,690 | | |
Property and equipment, net | | | | | 6,785 | | | | | | — | | | | | | — | | | | | | | | | 6,785 | | | | | | — | | | | | | | | | 6,785 | | |
Other non-current assets | | | | | 9,245 | | | | | | — | | | | | | — | | | | | | | | | 9,245 | | | | | | — | | | | | | | | | 9,245 | | |
Cash and marketable securities held in Trust Account | | | | | — | | | | | | 402,509 | | | | | | (402,509) | | | | 3A | | | | | — | | | | | | (402,509) | | | | 3A | | | | | — | | |
Total assets | | | | $ | 188,149 | | | | | $ | 403,710 | | | | | $ | 46,119 | | | | | | | | $ | 637,978 | | | | | $ | (145,139) | | | | | | | | $ | 446,720 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 15,813 | | | | | $ | 221 | | | | | $ | — | | | | | | | | $ | 16,034 | | | | | $ | — | | | | | | | | $ | 16,034 | | |
Payable to customers | | | | | 54,959 | | | | | | — | | | | | | — | | | | | | | | | 54,959 | | | | | | — | | | | | | | �� | | 54,959 | | |
Other current liabilities | | | | | 20,020 | | | | | | — | | | | | | — | | | | | | | | | 20,020 | | | | | | — | | | | | | | | | 20,020 | | |
Total current liabilities | | | | | 90,792 | | | | | | 221 | | | | | | — | | | | | | | | | 91,013 | | | | | | — | | | | | | | | | 91,013 | | |
Convertible notes payable, net | | | | | 72,078 | | | | | | — | | | | | | (72,078) | | | | 3E | | | | | — | | | | | | (72,078) | | | | 3E | | | | | — | | |
Other non-current liabilities | | | | | 7,769 | | | | | | — | | | | | | (2,702) | | | | 3E | | | | | 5,067 | | | | | | (2,702) | | | | 3E | | | | | 5,067 | | |
Deferred underwriting commissions | | | | | | | | | | | 14,088 | | | | | | (14,088) | | | | 3H | | | | | — | | | | | | (14,088) | | | | 3H | | | | | — | | |
Warrant liability | | | | | | | | | | | 20,986 | | | | | | (4,254) | | | | 3J | | | | | 16,732 | | | | | | (4,254) | | | | 3J | | | | | 16,732 | | |
Total liabilities | | | | | 170,639 | | | | | | 35,295 | | | | | | (93,122) | | | | | | | | | 112,812 | | | | | | (93,122) | | | | | | | | | 112,812 | | |
Redeemable preferred stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Convertible preferred stock – Series E-2; $0.001 par value | | | | | 26,192 | | | | | | — | | | | | | (26,192) | | | | 3F | | | | | — | | | | | | (26,192) | | | | 3F | | | | | — | | |
Convertible preferred stock – Series E-1; $0.001 par value | | | | | 211,968 | | | | | | — | | | | | | (211,968) | | | | 3F | | | | | — | | | | | | (211,968) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series D-1; $0.001 par value | | | | | 30,187 | | | | | | — | | | | | | (30,187) | | | | 3F | | | | | — | | | | | | (30,187) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series D; $0.001 par value | | | | | 54,963 | | | | | | — | | | | | | (54,963) | | | | 3F | | | | | — | | | | | | (54,963) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series C; $0.001 par value | | | | | 33,836 | | | | | | — | | | | | | (33,836) | | | | 3F | | | | | — | | | | | | (33,836) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series B; $0.001 par value | | | | | 7,150 | | | | | | — | | | | | | (7,150) | | | | 3F | | | | | — | | | | | | (7,150) | | | | 3F | | | | | — | | |
| | | As of March 31, 2021 | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Convertible preferred stock — Series A; $0.001 par value | | | | | 3,218 | | | | | | — | | | | | | (3,218) | | | | 3F | | | | | — | | | | | | (3,218) | | | | 3F | | | | | — | | |
Common stock subject to possible redemption | | | | | — | | | | | | 363,415 | | | | | | (363,415) | | | | 3C | | | | | — | | | | | | (363,415) | | | | 3C | | | | | — | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acorns Common stock — $0.001 par value | | | | | 13 | | | | | | — | | | | | | (13) | | | | 3G | | | | | — | | | | | | (13) | | | | 3G | | | | | — | | |
Pioneer Common Stock, $.0001 par value | | | | | — | | | | | | — | | | | | | 2 | | | | 3D | | | | | 25 | | | | | | 2 | | | | 3D | | | | | 23 | | |
| | | | | | | | | | | | | | | | | 5 | | | | 3C | | | | | | | | | | | 5 | | | | 3C | | | | | | | |
| | | | | | | | | | | | | | | | | 6 | | | | 3F | | | | | | | | | | | 6 | | | | 3F | | | | | | | |
| | | | | | | | | | | | | | | | | 13 | | | | 3G | | | | | | | | | | | 13 | | | | 3G | | | | | | | |
| | | | | | | | | | | | | | | | | (1) | | | | 3I | | | | | | | | | | | (3) | | | | 3B | | | |||||
Pioneer Class A Ordinary shares, $0.0001 par value | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Pioneer Class B Ordinary shares, $0.0001 par value | | | | | — | | | | | | 1 | | | | | | (1) | | | | 3C | | | | | — | | | | | | (1) | | | | 3C | | | | | — | | |
Additional paid-in capital | | | | | 4,168 | | | | | | — | | | | | | 164,998 | | | | 3D | | | | | 878,372 | | | | | | 164,998 | | | | 3D | | | | | 687,116 | | |
| | | | | | | | | | | | | | | | | 363,411 | | | | 3C | | | | | | | | | | | 363,411 | | | | 3C | | | | | | | |
| | | | | | | | | | | | | | | | | 367,508 | | | | 3F | | | | | | | | | | | 367,508 | | | | 3F | | | | | | | |
| | | | | | | | | | | | | | | | | 4,999 | | | | 3G | | | | | | | | | | | 4,999 | | | | 3G | | | | | | | |
| | | | | | | | | | | | | | | | | 74,780 | | | | 3E | | | | | | | | | | | 74,780 | | | | 3E | | | | | | | |
| | | | | | | | | | | | | | | | | (9,850) | | | | 3H | | | | | | | | | | | (9,850) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | (91,642) | | | | 3I | | | | | | | | | | | (282,898) | | | | 3B | | | | | | | |
Accumulated deficit | | | | | (354,185) | | | | | | 4,999 | | | | | | (4,999) | | | | 3G | | | | | (353,231) | | | | | | (4,999) | | | | 3G | | | | | (353,231) | | |
| | | | | | | | | | | | | | | | | (3,300) | | | | 3H | | | | | | | | | | | (3,300) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | 4,254 | | | | 3J | | | | | | | | | | | 4,254 | | | | 3J | | | | | | | |
Accumulated other comprehensive loss | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Total shareholders’ equity (deficit) | | | | | (350,004) | | | | | | 5,000 | | | | | | 870,170 | | | | | | | | | 525,166 | | | | | | 678,912 | | | | | | | | | 333,908 | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ equity (deficit) | | | | $ | 188,149 | | | | | $ | 403,710 | | | | | $ | 46,119 | | | | | | | | $ | 637,978 | | | | | $ | (145,139) | | | | | | | | $ | 446,720 | | |
|
| | | For the Six Month Period ended March 31, 2021 | | | For the Period from October 21, 2020 (inception) through March 31, 2021 | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | For the Six Month Period ended March 31, 2021 | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | For the Six Month Period ended March 31, 2021 | | ||||||||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 47,220 | | | | | $ | — | | | | | | | | $ | 47,220 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | — | | | | | | — | | | | | | | | | 8,335 | | | | | | — | | | | | | | | | 8,335 | | |
Sales and marketing | | | | | 47,365 | | | | | | — | | | | | | — | | | | | | | | | 47,365 | | | | | | — | | | | | | | | | 47,365 | | |
Research and development | | | | | 17,361 | | | | | | — | | | | | | — | | | | | | | | | 17,361 | | | | | | — | | | | | | | | | 17,361 | | |
General and administrative | | | | | 24,651 | | | | | | 398 | | | | | | 3,300 | | | | 3CC | | | | | 28,349 | | | | | | 3,300 | | | | 3CC | | | | | 28,349 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 398 | | | | | | 3,300 | | | | | | | | | 101,410 | | | | | | 3,300 | | | | | | | | | 101,410 | | |
Loss from operations | | | | | (50,492) | | | | | | (398) | | | | | | (3,300) | | | | | | | | | (54,190) | | | | | | (3,300) | | | | | | | | | (54,190) | | |
Loss on excess of fair value over cash received for private placement warrants | | | | | — | | | | | | (737) | | | | | | | | | | | | | | | (737) | | | | | | — | | | | | | | | | (737) | | |
Change in fair value of derivative warrant liabilities | | | | | — | | | | | | 8,584 | | | | | | 4,254 | | | | 3EE | | | | | 12,838 | | | | | | 4,254 | | | | 3EE | | | | | 12,838 | | |
Financing costs — derivative warrant liabilities | | | | | — | | | | | | (1,080) | | | | | | — | | | | | | | | | (1,080) | | | | | | — | | | | | | | | | (1,080) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | — | | | | | | (906) | | | | 3BB | | | | | 3,567 | | | | | | (906) | | | | 3BB | | | | | 3,567 | | |
Interest earned on marketable securities held in Trust Account | | | | | — | | | | | | 9 | | | | | | (9) | | | | 3AA | | | | | — | | | | | | (9) | | | | 3AA | | | | | — | | |
Income (loss) before provision for income taxes | | | | | (46,019) | | | | | | 6,378 | | | | | | 39 | | | | | | | | | (39,602) | | | | | | 39 | | | | | | | | | (39,602) | | |
Benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | — | | | | 3DD | | | | | 1,647 | | | | | | — | | | | 3DD | | | | | 1,647 | | |
Net income (loss) | | | | $ | (44,372) | | | | | $ | 6,378 | | | | | $ | 39 | | | | | | | | $ | (37,955) | | | | | $ | 39 | | | | | | | | $ | (37,955) | | |
Undistributed accumulated dividends on preferred stock | | | | $ | (8,001) | | | | | | | | | | | $ | 8,001 | | | | 3FF | | | | $ | — | | | | | $ | 8,001 | | | | 3FF | | | | $ | — | | |
Net income (loss) attributable to common shareholders | | | | $ | (52,373) | | | | | $ | 6,378 | | | | | $ | 8,040 | | | | | | | | $ | (37,955) | | | | | $ | 8,040 | | | | | | | | $ | (37,955) | | |
Net loss per share of common stock – basic and diluted | | | | $ | (4.05) | | | | | | | | | | | | | | | | | | | | $ | (0.18) | | | | | | | | | | | | | | $ | (0.20) | | |
Weighted average shares of common stock outstanding – basic and diluted | | | | | 12,922,640 | | | | | | | | | | | | | | | | | | | | | 213,388,441 | | | | | | | | | | | | | | | 194,262,654 | | |
Basic and diluted net loss per ordinary share – Class A | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class A | | | | | | | | | | | 40,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income per ordinary share – Class B | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class B | | | | | | | | | | | 9,398,047 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended September 30, 2020 | | | For the period from October 21, 2020 (inception) through December 31, 2020 | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | | | | | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | | | | | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||
Revenue | | | | $ | 63,480 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 63,480 | | | | | $ | — | | | | | | | | $ | 63,480 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 16,131 | | | | | | — | | | | | | — | | | | | | | | | 16,131 | | | | | | — | | | | | | | | | 16,131 | | |
Sales and marketing | | | | | 68,559 | | | | | | — | | | | | | — | | | | | | | | | 68,559 | | | | | | — | | | | | | | | | 68,559 | | |
Research and development | | | | | 33,741 | | | | | | — | | | | | | — | | | | | | | | | 33,741 | | | | | | — | | | | | | | | | 33,741 | | |
General and administrative | | | | | 27,409 | | | | | | 35 | | | | | | 3,300 | | | | 3CC | | | | | 30,744 | | | | | | 3,300 | | | | 3CC | | | | | 30,744 | | |
Total costs and expenses | | | | | 145,840 | | | | | | 35 | | | | | | 3,300 | | | | | | | | | 149,175 | | | | | | 3,300 | | | | | | | | | 149,175 | | |
Loss from operations | | | | | (82,360) | | | | | | (35) | | | | | | (3,300) | | | | | | | | | (85,695) | | | | | | (3,300) | | | | | | | | | (85,695) | | |
Interest and other income (expense), net | | | | | (3,106) | | | | | | — | | | | | | 2,887 | | | | 3BB | | | | | (219) | | | | | | 2,887 | | | | 3BB | | | | | (219) | | |
Loss before provision for income taxes | | | | | (85,466) | | | | | | (35) | | | | | | (413) | | | | | | | | | (85,914) | | | | | | (413) | | | | | | | | | (85,914) | | |
Provision for income tax | | | | | (6) | | | | | | — | | | | | | — | | | | 3DD | | | | | (6) | | | | | | — | | | | 3DD | | | | | (6) | | |
Net loss | | | | $ | (85,472) | | | | | $ | (35) | | | | | $ | (413) | | | | | | | | $ | (85,920) | | | | | $ | (413) | | | | | | | | $ | (85,920) | | |
Undistributed accumulated dividends on preferred stock | | | | $ | (15,331) | | | | | | | | | | | $ | 15,331 | | | | 3FF | | | | $ | — | | | | | $ | 15,331 | | | | 3FF | | | | $ | — | | |
Net loss attributable to common shareholders | | | | $ | (100,803) | | | | | $ | (35) | | | | | $ | 14,918 | | | | | | | | $ | (85,920) | | | | | $ | 14,918 | | | | | | | | $ | (85,920) | | |
Net loss per share of common stock – basic and diluted | | | | $ | (8.41) | | | | | | | | | | | | | | | | | | | | $ | (0.40) | | | | | | | | | | | | | | $ | (0.44) | | |
Weighted average shares of common stock outstanding – basic and diluted | | | | | 11,992,015 | | | | | | | | | | | | | | | | | | | | | 213,388,441 | | | | | | | | | | | | | | | 194,262,654 | | |
Basic and diluted net loss per ordinary share – Class A | | | | | | | | | | | N/A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class A | | | | | | | | | | | N/A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per ordinary share – Class B | | | | | | | | | | $ | (0.00) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class B | | | | | | | | | | | 8,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended March 31, 2021 | | | Fiscal year ended September 30, 2020 | | ||||||||||||||||||
(in thousands, except share data) | | | No Redemption | | | Maximum Redemption | | | No Redemption | | | Maximum Redemption | | ||||||||||||
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss | | | | $ | (37,955) | | | | | $ | (37,955) | | | | | $ | (85,920) | | | | | $ | (85,920) | | |
Denominator | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Acorns shareholders and preferred shareholders | | | | | 140,835,687 | | | | | | 150,000,000 | | | | | | 140,835,687 | | | | | | 150,000,000 | | |
Sponsor | | | | | 10,062,500 | | | | | | 10,062,500 | | | | | | 10,062,500 | | | | | | 10,062,500 | | |
PIPE shareholders | | | | | 16,500,000 | | | | | | 16,500,000 | | | | | | 16,500,000 | | | | | | 16,500,000 | | |
PIPE convertible notes(1) | | | | | 5,740,254 | | | | | | 5,740,254 | | | | | | 5,740,254 | | | | | | 5,740,254 | | |
Pioneer public shareholders | | | | | 40,250,000 | | | | | | 11,959,900 | | | | | | 40,250,000 | | | | | | 11,959,900 | | |
Weighted-average shares − basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | 213,388,441 | | | | | | 194,262,654 | | |
Net loss per share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (0.18) | | | | | $ | (0.20) | | | | | $ | (0.40) | | | | | $ | (0.44) | | |
| | | For the Three Months ended March 31, 2021 | | | Period from October 21, 2020 (inception) through December 31, 2020 (audited) | | ||||||
Statement of Operations Data | | | | | | | | | | | | | |
General and administrative expenses | | | | $ | 308,408 | | | | | $ | 35,012 | | |
General and administrative expenses — related party | | | | | 54,788 | | | | | | — | | |
Loss from operations | | | | $ | 363,196 | | | | | $ | 35,012 | | |
Other Income (expenses) | | | | | | | | | | | | | |
Loss on excess of fair value over cash received for Private Placement warrants | | | | | (737,000) | | | | | | | | |
Change in fair value of derivative warrant liabilities | | | | | 8,583,830 | | | | | | | | |
Financing costs – derivative warrant liabilities | | | | | (1,080,020) | | | | | | | | |
Interest income from investments held in Trust Account | | | | | 8,602 | | | | | | | | |
Net Income | | | | $ | 6,412,216 | | | | | | | | |
Basic and diluted weighted average shares outstanding of Class A redeemable ordinary shares | | | | | 40,250,000 | | | | | | — | | |
Basic and diluted net income per share, Class A | | | | $ | 0.00 | | | | | | — | | |
Basic and diluted weighted average shares outstanding Class B non-redeemable ordinary shares | | | | | 9,902,083 | | | | | | 8,750,000 | | |
Basic and diluted net income (loss) per share, Class B | | | | $ | 0.65 | | | | | $ | (0.00) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands, except per share data) | | |||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | $ | 63,480 | | | | | $ | 39,646 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 16,131 | | | | | | 11,427 | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | | | | | 68,559 | | | | | | 76,910 | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | | | | | 33,741 | | | | | | 26,289 | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | | | | | 27,409 | | | | | | 29,734 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | | | | | 145,840 | | | | | | 144,360 | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | | | | | (82,360) | | | | | | (104,714) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | | | | | (3,106) | | | | | | (4,396) | | |
Loss before provision for income taxes | | | | | (46,019) | | | | | | (53,942) | | | | | | (85,466) | | | | | | (109,110) | | |
(Provision) benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | (6) | | | | | | (5) | | |
Net loss | | | | | (44,372) | | | | | | (53,942) | | | | | | (85,472) | | | | | | (109,115) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | | | | | (15,331) | | | | | | (11,648) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | | | | $ | (100,803) | | | | | $ | (120,763) | | |
Net loss per share attributable to common shareholders: | | | | | | ||||||||||||||||||||
Basic and diluted | | | | $ | (4.05) | | | | | $ | (5.15) | | | | | $ | (8.41) | | | | | $ | (10.77) | | |
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | ||||||||||||||||||||
Basic and diluted | | | | | 12,923 | | | | | | 11,897 | | | | | | 11,992 | | | | | | 11,216 | | |
| | | March 31, 2021 | | | September 30, 2020 | | | September 30, 2019 | | |||||||||
| | | (In thousands) | | |||||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total current assets | | | | $ | 172,119 | | | | | $ | 128,616 | | | | | $ | 140,043 | | |
Total assets | | | | | 188,149 | | | | | | 137,316 | | | | | | 150,037 | | |
Total current liabilities | | | | | 90,792 | | | | | | 56,275 | | | | | | 38,396 | | |
Total liabilities | | | | | 170,639 | | | | | | 87,604 | | | | | | 45,084 | | |
Working capital | | | | | 81,327 | | | | | | 72,341 | | | | | | 101,647 | | |
Redeemable convertible preferred stock | | | | | 367,514 | | | | | | 359,513 | | | | | | 319,182 | | |
Total shareholders’ deficit | | | | | (350,004) | | | | | | (309,801) | | | | | | (214,229) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Statement of Cash Flow Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net cash used in operating activities | | | | $ | (14,867) | | | | | $ | (28,922) | | | | | $ | (45,289) | | | | | $ | (72,895) | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | | | | | (685) | | | | | | (2,463) | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | | | | | 23,126 | | | | | | 103,230 | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 35,343 | | | | | $ | (29,322) | | | | | $ | (22,848) | | | | | $ | 27,872 | | |
| | | Pro Forma Combined(1) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined | | | (Assuming No Redemptions) | | | (Assuming Maximum Redemptions) | | ||||||
(in thousands, except share data) | | | | | | | | | | | | | |
Statement of Operations Data | | | | | | | | | | | | | |
As of and for the six months ended March 31, 2021 | | | | | | | | | | | | | |
Revenue | | | | $ | 47,220 | | | | | $ | 47,220 | | |
Net loss per common share – basic and diluted | | | | $ | (0.18) | | | | | $ | (0.20) | | |
Weighted-average common stock outstanding – basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | |
As of and for the fiscal year ended September 30, 2020 | | | | | | | | | | | | | |
Revenue | | | | $ | 63,480 | | | | | $ | 63,480 | | |
Net loss per common share – basic and diluted | | | | $ | (0.40) | | | | | $ | (0.44) | | |
Weighted-average common stock outstanding – basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | |
Summary Unaudited Pro Forma Condensed Combined | | | | | | | | | | | | | |
As of the six months ended March 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 637,978 | | | | | $ | 446,720 | | |
Total liabilities | | | | $ | 112,812 | | | | | $ | 112,812 | | |
Total shareholders’ deficit | | | | $ | 525,166 | | | | | $ | 333,908 | | |
| | | Historical | | | Pro Forma Combined | | | Acorns Equivalent Pro Forma Per Share Data(4) | | |||||||||||||||||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||||||||||||||
As of and for the six months ended March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Common Stock – basic and diluted(2) | | | | $ | (4.05) | | | | | | | | | | | $ | (0.18) | | | | | $ | (0.20) | | | | | $ | (0.31) | | | | | $ | (0.34) | | |
Book value per share – Common Stock – basic and diluted(1) | | | | $ | (27.08) | | | | | | | | | | | $ | 2.46 | | | | | $ | 1.72 | | | | | $ | 4.32 | | | | | $ | 3.02 | | |
Weighted Average shares outstanding – Common Stock – basic and diluted | | | | | 12,922,640 | | | | | | | | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | N/A | | | | | | N/A | | |
Net loss per share – Class A Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class A Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class A Ordinary Shares – basic and diluted | | | | | | | | | | | 40,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income per share – Class B Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class B Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class B Ordinary Shares – basic and diluted | | | | | | | | | | | 9,398,047 | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of and for the fiscal year ended September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Common Stock – basic and diluted(2) | | | | $ | (8.41) | | | | | | | | | | | $ | (0.40) | | | | | $ | (0.44) | | | | | $ | (0.71) | | | | | $ | (0.78) | | |
Book value per share – Common Stock – basic and diluted(3) | | | | $ | (25.83) | | | | | | | | | | | | N/A(3) | | | | | | N/A(3) | | | | | | N/A(3) | | | | | | N/A(3) | | |
Weighted Average shares outstanding – Common Stock – basic and diluted | | | | | 11,992,015 | | | | | | | | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | N/A | | | | | | N/A | | |
Net loss per share – Class A Ordinary Shares- basic and diluted(2) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class A Ordinary Shares – basic and diluted(1) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class A Ordinary Shares – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss per share – Class B Ordinary Shares- basic and diluted(2) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Book value per share – Class B Ordinary Shares – basic and diluted(1) | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted Average shares outstanding – Class B Ordinary Shares – basic and diluted | | | | | | | | | | | 8,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | No Redemption | | | Maximum Redemption | | ||||||||||||||||||
| | | Shares | | | Fully Diluted % | | | Shares | | | Fully Diluted % | | ||||||||||||
Shareholders | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Acorns shareholders and preferred shareholders(2)(3) | | | | | 140,835,687 | | | | | | 66.0% | | | | | | 150,000,000 | | | | | | 77.1% | | |
Sponsor | | | | | 10,062,500 | | | | | | 4.7% | | | | | | 10,062,500 | | | | | | 5.2% | | |
PIPE shareholders | | | | | 16,500,000 | | | | | | 7.7% | | | | | | 16,500,000 | | | | | | 8.5% | | |
PIPE convertible notes(1) | | | | | 5,740,254 | | | | | | 2.7% | | | | | | 5,740,254 | | | | | | 3.0% | | |
Pioneer public shareholders | | | | | 40,250,000 | | | | | | 18.9% | | | | | | 11,959,900 | | | | | | 6.2% | | |
Total shares of common stock outstanding at closing of the Transaction | | | | | 213,388,441 | | | | | | 100.0% | | | | | | 194,262,654 | | | | | | 100.0% | | |
| | | As of March 31, 2021 | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 81,142 | | | | | $ | 392 | | | | | $ | 402,509 | | | | 3A | | | | $ | 531,142 | | | | | $ | 402,509 | | | | 3A | | | | $ | 339,884 | | |
| | | | | | | | | | | | | | | | | 165,000 | | | | 3D | | | | | | | | | | | 165,000 | | | | 3D | | | | | | | |
| | | | | | | | | | | | | | | | | (26,258) | | | | 3H | | | | | | | | | | | (26,258) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | (91,643) | | | | 3I | | | | | | | | | | | (282,901) | | | | 3B | | | | | | | |
Restricted cash | | | | | 1,727 | | | | | | — | | | | | | — | | | | | | | | | 1,727 | | | | | | — | | | | | | | | | 1,727 | | |
Receivable from clearing organization | | | | | 54,216 | | | | | | — | | | | | | — | | | | | | | | | 54,216 | | | | | | — | | | | | | | | | 54,216 | | |
Accounts receivable, net | | | | | 6,129 | | | | | | — | | | | | | — | | | | | | | | | 6,129 | | | | | | — | | | | | | | | | 6,129 | | |
Prepaid expenses – related party | | | | | 16,446 | | | | | | — | | | | | | — | | | | | | | | | 16,446 | | | | | | — | | | | | | | | | 16,446 | | |
Prepaid expenses and other current assets | | | | | 12,459 | | | | | | 809 | | | | | | (980) | | | | 3H | | | | | 12,288 | | | | | | (980) | | | | 3H | | | | | 12,288 | | |
Total current assets | | | | | 172,119 | | | | | | 1,201 | | | | | | 448,628 | | | | | | | | | 621,948 | | | | | | 257,370 | | | | | | | | | 430,690 | | |
Property and equipment, net | | | | | 6,785 | | | | | | — | | | | | | — | | | | | | | | | 6,785 | | | | | | — | | | | | | | | | 6,785 | | |
Other non-current assets | | | | | 9,245 | | | | | | — | | | | | | — | | | | | | | | | 9,245 | | | | | | — | | | | | | | | | 9,245 | | |
Cash and marketable securities held in Trust Account | | | | | — | | | | | | 402,509 | | | | | | (402,509) | | | | 3A | | | | | — | | | | | | (402,509) | | | | 3A | | | | | — | | |
Total assets | | | | $ | 188,149 | | | | | $ | 403,710 | | | | | $ | 46,119 | | | | | | | | $ | 637,978 | | | | | $ | (145,139) | | | | | | | | $ | 446,720 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 15,813 | | | | | $ | 221 | | | | | $ | — | | | | | | | | $ | 16,034 | | | | | $ | — | | | | | | | | $ | 16,034 | | |
Payable to customers | | | | | 54,959 | | | | | | — | | | | | | — | | | | | | | | | 54,959 | | | | | | — | | | | | | | �� | | 54,959 | | |
Other current liabilities | | | | | 20,020 | | | | | | — | | | | | | — | | | | | | | | | 20,020 | | | | | | — | | | | | | | | | 20,020 | | |
Total current liabilities | | | | | 90,792 | | | | | | 221 | | | | | | — | | | | | | | | | 91,013 | | | | | | — | | | | | | | | | 91,013 | | |
Convertible notes payable, net | | | | | 72,078 | | | | | | — | | | | | | (72,078) | | | | 3E | | | | | — | | | | | | (72,078) | | | | 3E | | | | | — | | |
Other non-current liabilities | | | | | 7,769 | | | | | | — | | | | | | (2,702) | | | | 3E | | | | | 5,067 | | | | | | (2,702) | | | | 3E | | | | | 5,067 | | |
Deferred underwriting commissions | | | | | | | | | | | 14,088 | | | | | | (14,088) | | | | 3H | | | | | — | | | | | | (14,088) | | | | 3H | | | | | — | | |
Warrant liability | | | | | | | | | | | 20,986 | | | | | | (4,254) | | | | 3J | | | | | 16,732 | | | | | | (4,254) | | | | 3J | | | | | 16,732 | | |
Total liabilities | | | | | 170,639 | | | | | | 35,295 | | | | | | (93,122) | | | | | | | | | 112,812 | | | | | | (93,122) | | | | | | | | | 112,812 | | |
Redeemable preferred stock | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Convertible preferred stock – Series E-2; $0.001 par value | | | | | 26,192 | | | | | | — | | | | | | (26,192) | | | | 3F | | | | | — | | | | | | (26,192) | | | | 3F | | | | | — | | |
Convertible preferred stock – Series E-1; $0.001 par value | | | | | 211,968 | | | | | | — | | | | | | (211,968) | | | | 3F | | | | | — | | | | | | (211,968) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series D-1; $0.001 par value | | | | | 30,187 | | | | | | — | | | | | | (30,187) | | | | 3F | | | | | — | | | | | | (30,187) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series D; $0.001 par value | | | | | 54,963 | | | | | | — | | | | | | (54,963) | | | | 3F | | | | | — | | | | | | (54,963) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series C; $0.001 par value | | | | | 33,836 | | | | | | — | | | | | | (33,836) | | | | 3F | | | | | — | | | | | | (33,836) | | | | 3F | | | | | — | | |
Convertible preferred stock — Series B; $0.001 par value | | | | | 7,150 | | | | | | — | | | | | | (7,150) | | | | 3F | | | | | — | | | | | | (7,150) | | | | 3F | | | | | — | | |
| | | As of March 31, 2021 | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | | | | | | | | | | | As of March 31, 2021 | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Convertible preferred stock — Series A; $0.001 par value | | | | | 3,218 | | | | | | — | | | | | | (3,218) | | | | 3F | | | | | — | | | | | | (3,218) | | | | 3F | | | | | — | | |
Common stock subject to possible redemption | | | | | — | | | | | | 363,415 | | | | | | (363,415) | | | | 3C | | | | | — | | | | | | (363,415) | | | | 3C | | | | | — | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Acorns Common stock — $0.001 par value | | | | | 13 | | | | | | — | | | | | | (13) | | | | 3G | | | | | — | | | | | | (13) | | | | 3G | | | | | — | | |
Pioneer Common Stock, $.0001 par value | | | | | — | | | | | | — | | | | | | 2 | | | | 3D | | | | | 25 | | | | | | 2 | | | | 3D | | | | | 23 | | |
| | | | | | | | | | | | | | | | | 5 | | | | 3C | | | | | | | | | | | 5 | | | | 3C | | | | | | | |
| | | | | | | | | | | | | | | | | 6 | | | | 3F | | | | | | | | | | | 6 | | | | 3F | | | | | | | |
| | | | | | | | | | | | | | | | | 13 | | | | 3G | | | | | | | | | | | 13 | | | | 3G | | | | | | | |
| | | | | | | | | | | | | | | | | (1) | | | | 3I | | | | | | | | | | | (3) | | | | 3B | | | |||||
Pioneer Class A Ordinary shares, $0.0001 par value | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Pioneer Class B Ordinary shares, $0.0001 par value | | | | | — | | | | | | 1 | | | | | | (1) | | | | 3C | | | | | — | | | | | | (1) | | | | 3C | | | | | — | | |
Additional paid-in capital | | | | | 4,168 | | | | | | — | | | | | | 164,998 | | | | 3D | | | | | 878,372 | | | | | | 164,998 | | | | 3D | | | | | 687,116 | | |
| | | | | | | | | | | | | | | | | 363,411 | | | | 3C | | | | | | | | | | | 363,411 | | | | 3C | | | | | | | |
| | | | | | | | | | | | | | | | | 367,508 | | | | 3F | | | | | | | | | | | 367,508 | | | | 3F | | | | | | | |
| | | | | | | | | | | | | | | | | 4,999 | | | | 3G | | | | | | | | | | | 4,999 | | | | 3G | | | | | | | |
| | | | | | | | | | | | | | | | | 74,780 | | | | 3E | | | | | | | | | | | 74,780 | | | | 3E | | | | | | | |
| | | | | | | | | | | | | | | | | (9,850) | | | | 3H | | | | | | | | | | | (9,850) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | (91,642) | | | | 3I | | | | | | | | | | | (282,898) | | | | 3B | | | | | | | |
Accumulated deficit | | | | | (354,185) | | | | | | 4,999 | | | | | | (4,999) | | | | 3G | | | | | (353,231) | | | | | | (4,999) | | | | 3G | | | | | (353,231) | | |
| | | | | | | | | | | | | | | | | (3,300) | | | | 3H | | | | | | | | | | | (3,300) | | | | 3H | | | | | | | |
| | | | | | | | | | | | | | | | | 4,254 | | | | 3J | | | | | | | | | | | 4,254 | | | | 3J | | | | | | | |
Accumulated other comprehensive loss | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Total shareholders’ equity (deficit) | | | | | (350,004) | | | | | | 5,000 | | | | | | 870,170 | | | | | | | | | 525,166 | | | | | | 678,912 | | | | | | | | | 333,908 | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ equity (deficit) | | | | $ | 188,149 | | | | | $ | 403,710 | | | | | $ | 46,119 | | | | | | | | $ | 637,978 | | | | | $ | (145,139) | | | | | | | | $ | 446,720 | | |
|
| | | For the Six Month Period ended March 31, 2021 | | | For the Period from October 21, 2020 (inception) through March 31, 2021 | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | For the Six Month Period ended March 31, 2021 | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | For the Six Month Period ended March 31, 2021 | | ||||||||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 47,220 | | | | | $ | — | | | | | | | | $ | 47,220 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | — | | | | | | — | | | | | | | | | 8,335 | | | | | | — | | | | | | | | | 8,335 | | |
Sales and marketing | | | | | 47,365 | | | | | | — | | | | | | — | | | | | | | | | 47,365 | | | | | | — | | | | | | | | | 47,365 | | |
Research and development | | | | | 17,361 | | | | | | — | | | | | | — | | | | | | | | | 17,361 | | | | | | — | | | | | | | | | 17,361 | | |
General and administrative | | | | | 24,651 | | | | | | 398 | | | | | | 3,300 | | | | 3CC | | | | | 28,349 | | | | | | 3,300 | | | | 3CC | | | | | 28,349 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 398 | | | | | | 3,300 | | | | | | | | | 101,410 | | | | | | 3,300 | | | | | | | | | 101,410 | | |
Loss from operations | | | | | (50,492) | | | | | | (398) | | | | | | (3,300) | | | | | | | | | (54,190) | | | | | | (3,300) | | | | | | | | | (54,190) | | |
Loss on excess of fair value over cash received for private placement warrants | | | | | — | | | | | | (737) | | | | | | | | | | | | | | | (737) | | | | | | — | | | | | | | | | (737) | | |
Change in fair value of derivative warrant liabilities | | | | | — | | | | | | 8,584 | | | | | | 4,254 | | | | 3EE | | | | | 12,838 | | | | | | 4,254 | | | | 3EE | | | | | 12,838 | | |
Financing costs — derivative warrant liabilities | | | | | — | | | | | | (1,080) | | | | | | — | | | | | | | | | (1,080) | | | | | | — | | | | | | | | | (1,080) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | — | | | | | | (906) | | | | 3BB | | | | | 3,567 | | | | | | (906) | | | | 3BB | | | | | 3,567 | | |
Interest earned on marketable securities held in Trust Account | | | | | — | | | | | | 9 | | | | | | (9) | | | | 3AA | | | | | — | | | | | | (9) | | | | 3AA | | | | | — | | |
Income (loss) before provision for income taxes | | | | | (46,019) | | | | | | 6,378 | | | | | | 39 | | | | | | | | | (39,602) | | | | | | 39 | | | | | | | | | (39,602) | | |
Benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | — | | | | 3DD | | | | | 1,647 | | | | | | — | | | | 3DD | | | | | 1,647 | | |
Net income (loss) | | | | $ | (44,372) | | | | | $ | 6,378 | | | | | $ | 39 | | | | | | | | $ | (37,955) | | | | | $ | 39 | | | | | | | | $ | (37,955) | | |
Undistributed accumulated dividends on preferred stock | | | | $ | (8,001) | | | | | | | | | | | $ | 8,001 | | | | 3FF | | | | $ | — | | | | | $ | 8,001 | | | | 3FF | | | | $ | — | | |
Net income (loss) attributable to common shareholders | | | | $ | (52,373) | | | | | $ | 6,378 | | | | | $ | 8,040 | | | | | | | | $ | (37,955) | | | | | $ | 8,040 | | | | | | | | $ | (37,955) | | |
Net loss per share of common stock – basic and diluted | | | | $ | (4.05) | | | | | | | | | | | | | | | | | | | | $ | (0.18) | | | | | | | | | | | | | | $ | (0.20) | | |
Weighted average shares of common stock outstanding – basic and diluted | | | | | 12,922,640 | | | | | | | | | | | | | | | | | | | | | 213,388,441 | | | | | | | | | | | | | | | 194,262,654 | | |
Basic and diluted net loss per ordinary share – Class A | | | | | | | | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class A | | | | | | | | | | | 40,250,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net income per ordinary share – Class B | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class B | | | | | | | | | | | 9,398,047 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended September 30, 2020 | | | For the period from October 21, 2020 (inception) through December 31, 2020 | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | | | | | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | | | | | | ||||||||||||
| | | Acorns (Historical) | | | Pioneer Merger Corp. (Historical) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||
Revenue | | | | $ | 63,480 | | | | | $ | — | | | | | $ | — | | | | | | | | $ | 63,480 | | | | | $ | — | | | | | | | | $ | 63,480 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 16,131 | | | | | | — | | | | | | — | | | | | | | | | 16,131 | | | | | | — | | | | | | | | | 16,131 | | |
Sales and marketing | | | | | 68,559 | | | | | | — | | | | | | — | | | | | | | | | 68,559 | | | | | | — | | | | | | | | | 68,559 | | |
Research and development | | | | | 33,741 | | | | | | — | | | | | | — | | | | | | | | | 33,741 | | | | | | — | | | | | | | | | 33,741 | | |
General and administrative | | | | | 27,409 | | | | | | 35 | | | | | | 3,300 | | | | 3CC | | | | | 30,744 | | | | | | 3,300 | | | | 3CC | | | | | 30,744 | | |
Total costs and expenses | | | | | 145,840 | | | | | | 35 | | | | | | 3,300 | | | | | | | | | 149,175 | | | | | | 3,300 | | | | | | | | | 149,175 | | |
Loss from operations | | | | | (82,360) | | | | | | (35) | | | | | | (3,300) | | | | | | | | | (85,695) | | | | | | (3,300) | | | | | | | | | (85,695) | | |
Interest and other income (expense), net | | | | | (3,106) | | | | | | — | | | | | | 2,887 | | | | 3BB | | | | | (219) | | | | | | 2,887 | | | | 3BB | | | | | (219) | | |
Loss before provision for income taxes | | | | | (85,466) | | | | | | (35) | | | | | | (413) | | | | | | | | | (85,914) | | | | | | (413) | | | | | | | | | (85,914) | | |
Provision for income tax | | | | | (6) | | | | | | — | | | | | | — | | | | 3DD | | | | | (6) | | | | | | — | | | | 3DD | | | | | (6) | | |
Net loss | | | | $ | (85,472) | | | | | $ | (35) | | | | | $ | (413) | | | | | | | | $ | (85,920) | | | | | $ | (413) | | | | | | | | $ | (85,920) | | |
Undistributed accumulated dividends on preferred stock | | | | $ | (15,331) | | | | | | | | | | | $ | 15,331 | | | | 3FF | | | | $ | — | | | | | $ | 15,331 | | | | 3FF | | | | $ | — | | |
Net loss attributable to common shareholders | | | | $ | (100,803) | | | | | $ | (35) | | | | | $ | 14,918 | | | | | | | | $ | (85,920) | | | | | $ | 14,918 | | | | | | | | $ | (85,920) | | |
Net loss per share of common stock – basic and diluted | | | | $ | (8.41) | | | | | | | | | | | | | | | | | | | | $ | (0.40) | | | | | | | | | | | | | | $ | (0.44) | | |
Weighted average shares of common stock outstanding – basic and diluted | | | | | 11,992,015 | | | | | | | | | | | | | | | | | | | | | 213,388,441 | | | | | | | | | | | | | | | 194,262,654 | | |
Basic and diluted net loss per ordinary share – Class A | | | | | | | | | | | N/A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class A | | | | | | | | | | | N/A | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted net loss per ordinary share – Class B | | | | | | | | | | $ | (0.00) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding of ordinary share – Class B | | | | | | | | | | | 8,750,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended March 31, 2021 | | | Fiscal year ended September 30, 2020 | | ||||||||||||||||||
(in thousands, except share data) | | | No Redemption | | | Maximum Redemption | | | No Redemption | | | Maximum Redemption | | ||||||||||||
Numerator | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss | | | | $ | (37,955) | | | | | $ | (37,955) | | | | | $ | (85,920) | | | | | $ | (85,920) | | |
Denominator | | | | | | | | | | | | | | | | | | | | | | | | | |
Former Acorns shareholders and preferred shareholders | | | | | 140,835,687 | | | | | | 150,000,000 | | | | | | 140,835,687 | | | | | | 150,000,000 | | |
Sponsor | | | | | 10,062,500 | | | | | | 10,062,500 | | | | | | 10,062,500 | | | | | | 10,062,500 | | |
PIPE shareholders | | | | | 16,500,000 | | | | | | 16,500,000 | | | | | | 16,500,000 | | | | | | 16,500,000 | | |
PIPE convertible notes(1) | | | | | 5,740,254 | | | | | | 5,740,254 | | | | | | 5,740,254 | | | | | | 5,740,254 | | |
Pioneer public shareholders | | | | | 40,250,000 | | | | | | 11,959,900 | | | | | | 40,250,000 | | | | | | 11,959,900 | | |
Weighted-average shares − basic and diluted | | | | | 213,388,441 | | | | | | 194,262,654 | | | | | | 213,388,441 | | | | | | 194,262,654 | | |
Net loss per share | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (0.18) | | | | | $ | (0.20) | | | | | $ | (0.40) | | | | | $ | (0.44) | | |
| Fintech Comparables: | | | SaaS Comparables: | | | Internet Comparables: | |
| • PayPal | | | • Coupa | | | • Snapchat | |
| • Shopify | | | • Avalara | | | • Roku | |
| • Square | | | • Anaplan | | | • Pinterest | |
| • Adyen | | | • Q2 | | | • GoodRx | |
| • Affirm | | | • nCino | | | | |
| • Afterpay | | | • Duck Creek Technologies | | | | |
| • XP Inc. | | | | | | | |
| • SoFi | | | | | | | |
| • eToro | | | | | | | |
| • MoneyLion | | | | | | | |
Company | | | Firm Value (“FV”) | | | Revenue (‘21) | | | Revenue Growth (‘21) | | | Revenue Growth (‘22) | | | FV / Revenue (‘21) | | | FV / Revenue (‘22) | | ||||||||||||||||||
Acorns | | | | $ | 1.6 | | | | | $ | 0.1 | | | | | | 77% | | | | | | 65% | | | | | | 12.7x | | | | | | 7.7x | | |
Fintech Comparables | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paypal | | | | $ | 289.5 | | | | | $ | 25.8 | | | | | | 20% | | | | | | 22% | | | | | | 11.2x | | | | | | 9.2x | | |
Shopify | | | | $ | 148.6 | | | | | $ | 4.4 | | | | | | 51% | | | | | | 32% | | | | | | 33.6x | | | | | | 25.4x | | |
Square | | | | $ | 95.2 | | | | | $ | 4.4 | | | | | | 41% | | | | | | 29% | | | | | | 21.7x | | | | | | 16.9x | | |
Adyen | | | | $ | 65.7 | | | | | $ | 1.2 | | | | | | 40% | | | | | | 41% | | | | | | 56.3x | | | | | | 39.9x | | |
Affirm | | | | $ | 22.8 | | | | | $ | 2.1 | | | | | | 39% | | | | | | 35% | | | | | | 10.9x | | | | | | 8.1x | | |
Afterpay | | | | $ | 20.3 | | | | | $ | 1.2 | | | | | | 64% | | | | | | 46% | | | | | | 17.0x | | | | | | 11.7x | | |
XP Inc. | | | | $ | 18.6 | | | | | $ | 1.0 | | | | | | 60% | | | | | | 31% | | | | | | 18.8x | | | | | | 14.4x | | |
SoFi | | | | $ | 15.1 | | | | | $ | 1.0 | | | | | | 58% | | | | | | 53% | | | | | | 15.4x | | | | | | 10.1x | | |
eToro | | | | $ | 10.5 | | | | | $ | 0.8 | | | | | | 48% | | | | | | 23% | | | | | | 13.0x | | | | | | 10.6x | | |
MoneyLion | | | | $ | 2.3 | | | | | $ | 0.1 | | | | | | 89% | | | | | | 79% | | | | | | 16.2x | | | | | | 9.0x | | |
SaaS Comparables | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Coupa | | | | $ | 19.8 | | | | | $ | 0.7 | | | | | | 26% | | | | | | 25% | | | | | | 29.7x | | | | | | 23.7x | | |
Avalara | | | | $ | 10.9 | | | | | $ | 0.7 | | | | | | 30% | | | | | | 23% | | | | | | 16.7x | | | | | | 13.5x | | |
Anaplan | | | | $ | 8.6 | | | | | $ | 0.5 | | | | | | 24% | | | | | | 25% | | | | | | 15.9x | | | | | | 12.7x | | |
Q2 | | | | $ | 6.5 | | | | | $ | 0.5 | | | | | | 22% | | | | | | 21% | | | | | | 13.2x | | | | | | 10.9x | | |
nCino | | | | $ | 5.7 | | | | | $ | 0.2 | | | | | | 24% | | | | | | 24% | | | | | | 23.0x | | | | | | 18.5x | | |
Duck Creek Technologies | | | | $ | 4.8 | | | | | $ | 0.2 | | | | | | 16% | | | | | | 17% | | | | | | 19.4x | | | | | | 16.5x | | |
Company | | | Firm Value (“FV”) | | | Revenue (‘21) | | | Revenue Growth (‘21) | | | Revenue Growth (‘22) | | | FV / Revenue (‘21) | | | FV / Revenue (‘22) | | ||||||||||||||||||
Acorns | | | | $ | 1.6 | | | | | $ | 0.1 | | | | | | 77% | | | | | | 65% | | | | | | 12.7x | | | | | | 7.7x | | |
Fintech Comparables | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paypal | | | | $ | 289.5 | | | | | $ | 25.8 | | | | | | 20% | | | | | | 22% | | | | | | 11.2x | | | | | | 9.2x | | |
Shopify | | | | $ | 148.6 | | | | | $ | 4.4 | | | | | | 51% | | | | | | 32% | | | | | | 33.6x | | | | | | 25.4x | | |
Square | | | | $ | 95.2 | | | | | $ | 4.4 | | | | | | 41% | | | | | | 29% | | | | | | 21.7x | | | | | | 16.9x | | |
Adyen | | | | $ | 65.7 | | | | | $ | 1.2 | | | | | | 40% | | | | | | 41% | | | | | | 56.3x | | | | | | 39.9x | | |
Affirm | | | | $ | 22.8 | | | | | $ | 2.1 | | | | | | 39% | | | | | | 35% | | | | | | 10.9x | | | | | | 8.1x | | |
Afterpay | | | | $ | 20.3 | | | | | $ | 1.2 | | | | | | 64% | | | | | | 46% | | | | | | 17.0x | | | | | | 11.7x | | |
XP Inc. | | | | $ | 18.6 | | | | | $ | 1.0 | | | | | | 60% | | | | | | 31% | | | | | | 18.8x | | | | | | 14.4x | | |
SoFi | | | | $ | 15.1 | | | | | $ | 1.0 | | | | | | 58% | | | | | | 53% | | | | | | 15.4x | | | | | | 10.1x | | |
eToro | | | | $ | 10.5 | | | | | $ | 0.8 | | | | | | 48% | | | | | | 23% | | | | | | 13.0x | | | | | | 10.6x | | |
MoneyLion | | | | $ | 2.3 | | | | | $ | 0.1 | | | | | | 89% | | | | | | 79% | | | | | | 16.2x | | | | | | 9.0x | | |
SaaS Comparables | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Coupa | | | | $ | 19.8 | | | | | $ | 0.7 | | | | | | 26% | | | | | | 25% | | | | | | 29.7x | | | | | | 23.7x | | |
Avalara | | | | $ | 10.9 | | | | | $ | 0.7 | | | | | | 30% | | | | | | 23% | | | | | | 16.7x | | | | | | 13.5x | | |
Anaplan | | | | $ | 8.6 | | | | | $ | 0.5 | | | | | | 24% | | | | | | 25% | | | | | | 15.9x | | | | | | 12.7x | | |
Q2 | | | | $ | 6.5 | | | | | $ | 0.5 | | | | | | 22% | | | | | | 21% | | | | | | 13.2x | | | | | | 10.9x | | |
nCino | | | | $ | 5.7 | | | | | $ | 0.2 | | | | | | 24% | | | | | | 24% | | | | | | 23.0x | | | | | | 18.5x | | |
Duck Creek Technologies | | | | $ | 4.8 | | | | | $ | 0.2 | | | | | | 16% | | | | | | 17% | | | | | | 19.4x | | | | | | 16.5x | | |
Internet Comparables | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Snapchat | | | | $ | 86.3 | | | | | $ | 3.9 | | | | | | 56% | | | | | | 49% | | | | | | 22.0x | | | | | | 14.8x | | |
Roku | | | | $ | 42.1 | | | | | $ | 2.7 | | | | | | 54% | | | | | | 38% | | | | | | 15.3x | | | | | | 11.1x | | |
| | | $ | 36.9 | | | | | $ | 2.6 | | | | | | 53% | | | | | | 36% | | | | | | 14.2x | | | | | | 10.4x | | | |
GoodRx | | | | $ | 11.8 | | | | | $ | 0.7 | | | | | | 36% | | | | | | 39% | | | | | | 15.8x | | | | | | 11.3x | | |
Company | | | Firm Value (“FV”) | | | Revenue (‘21) | | | Revenue Growth (‘21) | | | Revenue Growth (‘22) | | | FV / Revenue (‘21) | | | FV / Revenue (‘22) | | ||||||||||||||||||
Internet Comparables | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Snapchat | | | | $ | 86.3 | | | | | $ | 3.9 | | | | | | 56% | | | | | | 49% | | | | | | 22.0x | | | | | | 14.8x | | |
Roku | | | | $ | 42.1 | | | | | $ | 2.7 | | | | | | 54% | | | | | | 38% | | | | | | 15.3x | | | | | | 11.1x | | |
| | | $ | 36.9 | | | | | $ | 2.6 | | | | | | 53% | | | | | | 36% | | | | | | 14.2x | | | | | | 10.4x | | | |
GoodRx | | | | $ | 11.8 | | | | | $ | 0.7 | | | | | | 36% | | | | | | 39% | | | | | | 15.8x | | | | | | 11.3x | | |
| | | | | | | | | Fintech Comparables | | | SaaS Comparables | | | Internet Comparables | | |||||||||||||||||||||||||||
| | | Acorns | | | Mean | | | Median | | | Mean | | | Median | | | Mean | | | Median | | |||||||||||||||||||||
FV | | | | $ | 1.6 | | | | | $ | 68.9 | | | | | $ | 21.6 | | | | | $ | 9.4 | | | | | $ | 7.6 | | | | | $ | 44.3 | | | | | $ | 39.5 | | |
Revenue (‘21) | | | | $ | 0.1 | | | | | $ | 4.2 | | | | | $ | 1.2 | | | | | $ | 0.5 | | | | | $ | 0.5 | | | | | $ | 2.5 | | | | | $ | 2.7 | | |
Revenue Growth (‘21) | | | | | 77% | | | | | | 51% | | | | | | 50% | | | | | | 24% | | | | | | 24% | | | | | | 50% | | | | | | 54% | | |
Revenue Growth (‘22) | | | | | 65% | | | | | | 39% | | | | | | 33% | | | | | | 23% | | | | | | 24% | | | | | | 41% | | | | | | 39% | | |
FV / Revenue (‘21) | | | | | 12.7x | | | | | | 21.4x | | | | | | 16.6x | | | | | | 19.6x | | | | | | 18.0x | | | | | | 16.8x | | | | | | 15.6x | | |
FV / Revenue (‘22) | | | | | 7.7x | | | | | | 15.5x | | | | | | 11.1x | | | | | | 16.0x | | | | | | 15.0x | | | | | | 11.9x | | | | | | 11.2x | | |
| | | CY2021 | | | CY2022 | | | CY2023 | | |||||||||
Total Subscribers(1) | | | | | 4.6 | | | | | | 6.2 | | | | | | 8.1 | | |
Total Revenue | | | | $ | 126 | | | | | $ | 207 | | | | | $ | 309 | | |
% YoY Growth | | | | | 77% | | | | | | 65% | | | | | | 49% | | |
Total ARPU(2) | | | | $ | 29.91 | | | | | $ | 37.03 | | | | | $ | 41.69 | | |
Cost of Revenue | | | | $ | (20) | | | | | $ | (28) | | | | | $ | (44) | | |
Gross Profit | | | | $ | 106 | | | | | $ | 179 | | | | | $ | 265 | | |
% Margin | | | | | 84% | | | | | | 86% | | | | | | 86% | | |
Total Operating Expenses | | | | $ | (190) | | | | | $ | (261) | | | | | $ | (300) | | |
% of Revenue | | | | | (151)% | | | | | | (126)% | | | | | | (97)% | | |
Operating Income | | | | $ | (85) | | | | | $ | (82) | | | | | $ | (35) | | |
% Margin | | | | | (67)% | | | | | | (40)% | | | | | | (11)% | | |
Adjusted EBITDA | | | | $ | (68) | | | | | $ | (71) | | | | | $ | (31) | | |
% Margin | | | | | (54)% | | | | | | (34)% | | | | | | (10)% | | |
Operating Cash Flow | | | | $ | (70) | | | | | $ | (74) | | | | | $ | (33) | | |
Cash and Cash Equivalents(3) | | | | $ | 471 | | | | | $ | 396 | | | | | $ | 361 | | |
| | | Existing Governing Documents | | | Proposed Governing Documents | |
Authorized Shares (Governing Documents Proposal A) | | | The authorized share capital under the Existing Governing Documents is 500,000,000 Class A ordinary shares (as defined above) of par value $0.0001 per share, 50,000,000 Class B ordinary shares (as defined above) of par value $0.0001 per share and 5,000,000 preference shares par value $0.0001 per share. | | | The Proposed Governing Documents authorize 321,700,000 shares of New Acorns Common Stock par value $0.0001 per share and 100,000 shares of New Acorns Preferred Stock par value $0.0001 per share. | |
| | | See paragraph 5 of the Amended and Restated Memorandum of Association. | | | See Article 4 of the Proposed Certificate of Incorporation. | |
| | | Existing Governing Documents | | | Proposed Governing Documents | |
Authorize the Board of Directors to Issue Preferred Stock Without Shareholder Consent (Governing Documents Proposal B) | | | The Existing Governing Documents authorize the issuance of 5,000,000 preference shares with such designation, rights and preferences as may be determined from time to time by our Board of Directors. Accordingly, our Board of Directors is empowered under the Existing Governing Documents, without shareholder approval, to issue preference shares with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of the holders of ordinary shares. | | | The Proposed Governing Documents authorize the Board of Directors to issue all or any shares of preferred stock in one or more series and to fix for each such series such voting powers, full or limited, and such designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations or restrictions thereof, as the Board of Directors may determine. | |
| | | See paragraph 5 of the Amended and Restated Memorandum of Association and Article 3 of the Amended and Restated Articles of Association. | | | See Article 4 subsection A of the Proposed Certificate of Incorporation. | |
Shareholder/Shareholder Written Consent In Lieu of a Meeting (Governing Documents Proposal C) | | | The Existing Governing Documents provide that resolutions may be passed by a vote in person, by proxy at a general meeting, or by unanimous written resolution. | | | The Proposed Governing Documents allow shareholders to vote in person or by proxy at a meeting of shareholders, but prohibit the ability of shareholders to act by written consent in lieu of a meeting. | |
| | | See Article I of our Amended and Restated Articles of Association. | | | See Article 7 subsection C of the Proposed Certificate of Incorporation. | |
Corporate Name (Governing Documents Proposal D) | | | The Existing Governing Documents provide the name of the company is “Pioneer Merger Corp.” | | | The Proposed Governing Documents will provide that the name of the corporation will be “Acorns Holdings, Inc.” | |
| | | See paragraph 1 of our Amended and Restated Memorandum of Association. | | | See Article 1 of the Proposed Certificate of Incorporation. | |
Perpetual Existence (Governing Documents Proposal D) | | | The Existing Governing Documents provide that if we do not consummate a business combination (as defined in the Existing Governing Documents) by January 12, 2023 (twenty-fourth months after the closing of Pioneer’s Initial Public Offering (as defined above)), Pioneer will cease all operations except for the purposes of winding up and | | | The Proposed Governing Documents do not include any provisions relating to New Acorns’ ongoing existence; the default under the DGCL will make New Acorns’ existence perpetual. | |
| | | Existing Governing Documents | | | Proposed Governing Documents | |
| | | will redeem the shares issued in Pioneer’s Initial Public Offering and liquidate its trust account. | | | | |
| | | See Article 49 subsection 49.7 of our Amended and Restated Articles of Association. | | | This is the default rule under the DGCL. | |
Exclusive Forum (Governing Documents Proposal D) | | | The Existing Governing Documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | | The Proposed Governing Documents adopt Delaware as the exclusive forum for certain shareholder litigation and the U.S. federal district courts as the exclusive forum for litigation arising out of the Securities Act. | |
| | | | | | See Article 11 of the Proposed Certificate of Incorporation. | |
Provisions Related to Status as Blank Check Company (Governing Documents Proposal D) | | | The Existing Governing Documents set forth various provisions related to our status as a blank check company prior to the consummation of a business combination. | | | The Proposed Governing Documents do not include such provisions related to our status as a blank check company, which no longer will apply upon consummation of the Business Combination, as we will cease to be a blank check company at such time. | |
| | | See Article 49 of our Amended and Restated Articles of Association. | | | | |
Name and Position | | | Dollar Value ($) | | | Number of Shares | | ||||||
Noah Kerner Chief Executive Officer | | | | $ | 1,500,000(1) | | | | | ||||
Jasmine Lee Chief Operating Officer and Chief Financial Officer | | | | $ | 1,200,000(1) | | | | | ||||
All current executive officers as a group | | | | $ | 2,700,000 | | | | | ||||
All current directors who are not executive officers as a group | | | | | — | | | | | | — | | |
All employees, including all current officers who are not executive officers, as a group | | | | | — | | | | | | — | | |
Name and Position | | | Dollar Value ($) | | | Number of Shares | | ||||||
Noah Kerner Chief Executive Officer | | | | $ | 1,500,000(1) | | | | | ||||
Jasmine Lee Chief Operating Officer | | | | $ | 1,200,000(1) | | | | | ||||
All current executive officers as a group | | | | $ | 17,304,000(2) | | | | | ||||
All current directors who are not executive officers as a group | | | | | — | | | | | | — | | |
All employees, including all current officers who are not executive officers, as a group | | | | | — | | | | | | — | | |
Plan Category | | | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | | | Weighted average exercise price of outstanding options, warrants and rights (b) | | | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |
Equity compensation plans approved by security holders | | | | | | | | | | |
Equity compensation plans not approved by security holders | | | | | | | | | | |
Total | | | | | | | | | | |
Name | | | Age | | | Position | |
Jonathan Christodoro | | | 45 | | | Chairman | |
Rick Gerson | | | 45 | | | Co-President | |
Oscar Salazar | | | 43 | | | Co-President and Director | |
Ryan Khoury | | | 37 | | | Chief Executive Officer | |
Scott Carpenter | | | 49 | | | Chief Operating Officer | |
Matthew Corey | | | 36 | | | Chief Financial Officer | |
Mitchell Caplan | | | 63 | | | Director | |
Todd Davis | | | 53 | | | Director | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Average Subscribers | | | | | 3,626 | | | | | | 2,731 | | | | | | 2,970 | | | | | | 2,052 | | |
| | | As of March 31, | | | As of September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Subscribers | | | | | 4,010 | | | | | | 2,972 | | | | | | 3,355 | | | | | | 2,419 | | |
| | | As of March 31, | | | As of September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Premium tier mix | | | | | 41% | | | | | | 25% | | | | | | 32% | | | | | | 18% | | |
| | Six months ended March 31, | | Year ended September 30, | | | Six Months Ended March 31, | | Years Ended September 30, | | ||||||||||||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | 2020 | | 2019 | | | 2021 | | 2020 | | 2020 | | 2019 | | ||||||||||||||||||||||||||||||||
Average revenue per user | | | $ | 26.04 | | | | $ | 21.12 | | | | $ | 21.28 | | | | $ | 19.26 | | | | | $ | 13.02 | | | | $ | 10.60 | | | | $ | 21.37 | | | | $ | 19.32 | | | ||||||||
Average annualized revenue per user | | | $ | 26.04 | | | | $ | 21.20 | | | | $ | 21.37 | | | | $ | 19.32 | | |
| | Six months ended March 31, | | Year ended September 30, | | | Six months ended March 31, | | Year ended September 30, | | ||||||||||||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | | 2021 | | 2020 | | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||||
Revenue | | | $ | 47,220 | | | | $ | 28,937 | | | | $ | 63,480 | | | | $ | 39,646 | | | | | $ | 47,220 | | | | $ | 28,937 | | | | $ | 63,480 | | | | $ | 39,646 | | | ||||||||
Cost of revenue | | | | 8,335 | | | | | 8,213 | | | | | 16,131 | | | | | 11,427 | | | | | | 8,335 | | | | | 8,213 | | | | | 16,131 | | | | | 11,427 | | | ||||||||
Gross margin rate | | | | 82.3% | | | | | 71.6% | | | | | 74.6% | | | | | 71.2% | | | | | | 82.3% | | | | | 71.6% | | | | | 74.6% | | | | | 71.2% | | |
| | Six Months Ended March 31, | | | | | | | Year Ended September 30, | | | | | | | | Six Months Ended March 31, | | | | | | | Year Ended September 30, | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | % Change | | 2020 | | 2019 | | % Change | | | 2021 | | 2020 | | % Change | | 2020 | | 2019 | | % Change | | ||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | | | $ | 47,220 | | | | $ | 28,937 | | | | | 63% | | | | $ | 63,480 | | | | $ | 39,646 | | | | | 60% | | | | | $ | 47,220 | | | | $ | 28,937 | | | | | 63% | | | | $ | 63,480 | | | | $ | 39,646 | | | | | 60% | | | ||||||||||||
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Cost of revenue | | | | 8,335 | | | | | 8,213 | | | | | 1% | | | | | 16,131 | | | | | 11,427 | | | | | 41% | | | | | | 8,335 | | | | | 8,213 | | | | | 1% | | | | | 16,131 | | | | | 11,427 | | | | | 41% | | | ||||||||||||
Sales and marketing | | | | 47,365 | | | | | 40,889 | | | | | 16% | | | | | 68,559 | | | | | 76,910 | | | | | (11)% | | | | | | 47,365 | | | | | 40,889 | | | | | 16% | | | | | 68,559 | | | | | 76,910 | | | | | (11)% | | | ||||||||||||
Research and development | | | | 17,361 | | | | | 17,742 | | | | | (2)% | | | | | 33,741 | | | | | 26,289 | | | | | 28% | | | | | | 17,361 | | | | | 17,742 | | | | | (2)% | | | | | 33,741 | | | | | 26,289 | | | | | 28% | | | ||||||||||||
General and administrative | | | | 24,651 | | | | | 14,467 | | | | | 70% | | | | | 27,409 | | | | | 29,734 | | | | | (8)% | | | | | | 24,651 | | | | | 14,467 | | | | | 70% | | | | | 27,409 | | | | | 29,734 | | | | | (8)% | | | ||||||||||||
Total costs and expenses | | | | 97,712 | | | | | 81,311 | | | | | 20% | | | | | 145,840 | | | | | 144,360 | | | | | 1% | | | | | | 97,712 | | | | | 81,311 | | | | | 20% | | | | | 145,840 | | | | | 144,360 | | | | | 1% | | | ||||||||||||
Loss from operations | | | | (50,492) | | | | | (52,374) | | | | | (4)% | | | | | (82,360) | | | | | (104,714) | | | | | (21)% | | | | | | (50,492) | | | | | (52,374) | | | | | (4)% | | | | | (82,360) | | | | | (104,714) | | | | | (21)% | | | ||||||||||||
Interest and other income (expense), net | | | | 4,473 | | | | | (1,568) | | | | | 385% | | | | | (3,106) | | | | | (4,396) | | | | | (29)% | | | | | | 4,473 | | | | | (1,568) | | | | | 385% | | | | | (3,106) | | | | | (4,396) | | | | | (29)% | | | ||||||||||||
Loss before provision for income taxes | | | | (46,019) | | | | | (53,942) | | | | | (15)% | | | | | (85,466) | | | | | (109,110) | | | | | (22)% | | | |||||||||||||||||||||||||||||||||||||||||||
Loss before benefit for income taxes | | | | (46,019) | | | | | (53,942) | | | | | (15)% | | | | | (85,466) | | | | | (109,110) | | | | | (22)% | | | |||||||||||||||||||||||||||||||||||||||||||
(Provision) benefit for income taxes | | | | 1,647 | | | | | — | | | | | NM | | | | | (6) | | | | | (5) | | | | | 20% | | | | | | 1,647 | | | | | — | | | | | NM | | | | | (6) | | | | | (5) | | | | | 20% | | | ||||||||||||
Net loss | | | $ | (44,372) | | | | $ | (53,942) | | | | | (18)% | | | | $ | (85,472) | | | | $ | (109,115) | | | | | (22)% | | | | | $ | (44,372) | | | | $ | (53,942) | | | | | (18)% | | | | $ | (85,472) | | | | $ | (109,115) | | | | | (22)% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||||||||||||||
(in thousands, except percentages) | | | 2021 | | | 2020 | | | % Change | | | 2020 | | | 2019 | | | % Change | | ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscription fees | | | | $ | 38,245 | | | | | $ | 20,783 | | | | | | 84% | | | | | $ | 47,544 | | | | | $ | 27,088 | | | | | | 76% | | |
Transactional revenue | | | | | 8,975 | | | | | | 8,154 | | | | | | 10% | | | | | | 15,936 | | | | | | 12,558 | | | | | | 27% | | |
Total revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | | 63% | | | | | $ | 63,480 | | | | | $ | 39,646 | | | | | | 60% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Stock-based compensation | | | | $ | 9,427 | | | | | $ | 1,755 | | | | | $ | 2,030 | | | | | $ | 7,879 | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Net Loss | | | | $ | (44,372) | | | | | $ | (53,942) | | | | | $ | (85,472) | | | | | $ | (109,115) | | |
Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | | | | (1,647) | | | | | | — | | | | | | 6 | | | | | | 5 | | |
Interest expense (income), net | | | | | (914) | | | | | | (344) | | | | | | 2,530 | | | | | | 4,811 | | |
Depreciation and amortization on fixed assets and intangible assets | | | | | 1,198 | | | | | | 926 | | | | | | 1,875 | | | | | | 1,303 | | |
EBITDA | | | | | (45,735) | | | | | | (53,360) | | | | | | (81,061) | | | | | | (102,996) | | |
Non-cash in-kind service amortization of preferred stock(1) | | | | | 6,938 | | | | | | 19,803 | | | | | | 31,435 | | | | | | 18,082 | | |
Stock-based compensation | | | | | 11,269 | | | | | | 2,936 | | | | | | 4,510 | | | | | | 9,922 | | |
(Gain) loss on investment securities | | | | | (3,509) | | | | | | 2,003 | | | | | | 816 | | | | | | — | | |
Acquisition-related charges(2) | | | | | 760 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | (30,277) | | | | | $ | (28,618) | | | | | $ | (44,300) | | | | | $ | (74,992) | | |
| | Six Months Ended March 31, | | Year Ended September 30, | | | Six Months Ended March 31, | | Year Ended September 30, | | ||||||||||||||||||||||||||||||||||||||||
| | 2021 | | 2020 | | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | | 2021 | | 2020 | | 2020 | | 2019 | | |||||||||||||||||||||||||||||||||||||||||
Net cash used in operating activities | | | $ | (14,867) | | | | $ | (28,922) | | | | $ | (45,289) | | | | $ | (72,895) | | | | | $ | (14,867) | | | | $ | (28,922) | | | | $ | (45,289) | | | | $ | (72,895) | | | ||||||||
Net cash used in investing activities | | | | (658) | | | | | (542) | | | | | (685) | | | | | (2,463) | | | | | | (658) | | | | | (542) | | | | | (685) | | | | | (2,463) | | | ||||||||
Net cash provided by financing activities | | | | 50,868 | | | | | 142 | | | | | 23,126 | | | | | 103,230 | | | | | | 50,868 | | | | | 142 | | | | | 23,126 | | | | | 103,230 | | | ||||||||
Net increase (decrease) in cash and cash equivalents | | | $ | 35,343 | | | | $ | (29,322) | | | | $ | (22,848) | | | | $ | 27,872 | | | | | $ | 35,343 | | | | $ | (29,322) | | | | $ | (22,848) | | | | $ | 27,872 | | |
| | | | | | | | | For the years ending September 30, | | |||||||||||||||||||||
| | | Total | | | 2021 | | | 2022 – 2023 | | | 2024 – 2025 | | | Thereafter | | |||||||||||||||
Convertible notes | | | | $ | 77,754 | | | | | $ | — | | | | | $ | 77,754 | | | | | $ | — | | | | | $ | — | | |
Operating leases | | | | | 16,332 | | | | | | 3,163 | | | | | | 6,017 | | | | | | 6,110 | | | | | | 1,042 | | |
Total contractual obligations | | | | $ | 94,086 | | | | | $ | 3,163 | | | | | $ | 83,771 | | | | | $ | 6,110 | | | | | $ | 1,042 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | |||||||||
| | | Before the Business Combination | | | | | | | | | | | | | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | | Number of shares of Pioneer Class A Common Stock | | | % | | | Number of shares of Pioneer Class B Common Stock(2) | | | % | | | Number of Shares of Acorns Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | ||||||||||||||||||
Directors and Executive Officers of Pioneer(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jonathan Christodoro | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,500 | | | | | | * | | | | | | | | | | | | | | |
Rick Gerson(3) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Todd Davis | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mitchell Caplan | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Oscar Salazar | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of Pioneer (8 Individuals) | | | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 100.0% | | | | | | 12,500 | | | | | | * | | | | | | | | | | | | | | |
Five Percent Holders of Pioneer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pioneer Merger Sponsor LLC(1)(3) | | | | | — | | | | | | — | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Falcon Edge Capital, LP(1)(4) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rick Gerson(1)(3) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bleichroeder LP(5) | | | | | 2,282,285 | | | | | | 5.7 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | ||||||||||||||||||||||||||||||||
| | Before the Business Combination | | | | | | Assuming No Redemption | | Assuming Maximum Redemption | | | Before the Business Combination | | | | | | Assuming No Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | Number of shares of Pioneer Class A Common Stock | | % | | Number of shares of Pioneer Class B Common Stock(2) | | % | | Number of Shares of Acorns Stock | | % | | Number of shares of New Acorns Common Stock | | % | | Number of shares of New Acorns Common Stock | | % | | | Number of shares of Pioneer Class A Common Stock | | % | | Number of shares of Pioneer Class B Common Stock(2) | | % | | Number of Shares of Acorns Stock | | % | | Number of shares of New Acorns Common Stock | | % | | Number of shares of New Acorns Common Stock | | % | | ||||||||||||||||||||||||||||||||||||||||||||
Entities Affiliated with Sculptor Capital LP (7) | | | | 2,130,822 | | | | | 5.3 | | | | | — | | | | | — | | | | | | | | | | | | | | | | | | 2,130,822 | | | | | 5.3 | | | | | — | | | | | — | | | | | | | | | | | | | | | ||||||||||||||||||||
Directors and Executive Officers of New Acorns After Consummation of the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Noah Kerner | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
David Hijirida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Rich Sullivan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Jasmine Lee | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Manning Field | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Hugh Tamassia | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Ashley Good | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
James Moorhead | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Patricia Gonzales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
All Directors and Executive Officers of New Acorns as a Group ( Individuals) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Five Percent Holders of New Acorns After Consummation of the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware | | | Cayman Islands | |
Stockholder/Shareholder Approval of Business Combinations | | | Mergers generally require approval of a majority of all outstanding shares. Mergers in which less than 20% of the acquirer’s stock is issued generally do not require acquirer shareholder approval. Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or shareholders. | | | Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent. All mergers (other than parent/subsidiary mergers) require shareholder approval — there is no exception for smaller mergers. Where a bidder has acquired 90% or more of the shares in a Cayman Islands company, it can compel the acquisition of the shares of the remaining shareholders and thereby become the sole shareholder. A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50%+1 in number and 75% in value of shareholders in attendance and voting at a shareholders’ meeting. | |
Stockholder/Shareholder Votes for Routine Matters | | | Generally, approval of routine corporate matters that are put to a shareholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter. | | | Under Cayman Islands law and the Existing Governing Documents, routine corporate matters may be approved by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as being entitled to do so). | |
| | | Delaware | | | Cayman Islands | |
Appraisal Rights | | | Generally a shareholder of a publicly traded corporation does not have appraisal rights in connection with a merger. | | | Minority shareholders that dissent from a Cayman Islands statutory merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court. | |
Inspection of Books and Records | | | Any shareholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business. | | | Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company. | |
Stockholder/Shareholder Lawsuits | | | A shareholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum as per Pioneer Governing Documents Proposal D). | | | In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances. | |
Fiduciary Duties of Directors | | | Directors must exercise a duty of care and duty of loyalty and good faith to the company and its shareholders. | | | A director owes fiduciary duties to a company, including to exercise loyalty, honesty and good faith to the company as a whole. In addition to fiduciary duties, directors owe a duty of care, diligence and skill. Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances. | |
Indemnification of Directors and Officers | | | A corporation is generally permitted to indemnify its directors and officers acting in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation. | | | A Cayman Islands company generally may indemnify its directors or officers except with regard to fraud or willful default. | |
Limited Liability of Directors | | | Permits limiting or eliminating the monetary liability of a director to a corporation or its shareholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful repurchases or dividends, or improper personal benefit. | | | Liability of directors may be unlimited, except with regard to their own fraud or willful default. | |
Name | | | Age | | | Position | |
Executive Officers | | | | | | | |
Noah Kerner | | | 44 | | | Chief Executive Officer and Director Nominee | |
David Hijirida | | | 49 | | | President | |
Rich Sullivan | | | 48 | | | Chief Financial Officer | |
Jasmine Lee | | | 43 | | | Chief Operating | |
Manning Field | | | 48 | | | Chief Business Officer | |
Hugh Tamassia | | | 51 | | | Chief Technology Officer | |
James Moorhead | | | 42 | | | Chief Marketing Officer | |
Ashley Good | | | 45 | | | Chief Legal Officer and Secretary | |
Patricia Gonzales | | | 42 | | | Vice President of Human Resources | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Average Subscribers | | | | | 3,626 | | | | | | 2,731 | | | | | | 2,970 | | | | | | 2,052 | | |
| | | As of March 31, | | | As of September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Subscribers | | | | | 4,010 | | | | | | 2,972 | | | | | | 3,355 | | | | | | 2,419 | | |
| | | As of March 31, | | | As of September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Premium tier mix | | | | | 41% | | | | | | 25% | | | | | | 32% | | | | | | 18% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Average revenue per user | | | | $ | 13.02 | | | | | $ | 10.60 | | | | | $ | 21.37 | | | | | $ | 19.32 | | |
Average annualized revenue per user | | | | $ | 26.04 | | | | | $ | 21.20 | | | | | $ | 21.37 | | | | | $ | 19.32 | | |
| | | Six months ended March 31, | | | Year ended September 30, | | ||||||||||||||||||
(in thousands, except percentages) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | $ | 63,480 | | | | | $ | 39,646 | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 16,131 | | | | | | 11,427 | | |
Gross margin rate | | | | | 82.3% | | | | | | 71.6% | | | | | | 74.6% | | | | | | 71.2% | | |
| | | Six Months Ended March 31, | | | | | | | | | Year Ended September 30, | | | | | | | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | % Change | | | 2020 | | | 2019 | | | % Change | | ||||||||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | | 63% | | | | | $ | 63,480 | | | | | $ | 39,646 | | | | | | 60% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 1% | | | | | | 16,131 | | | | | | 11,427 | | | | | | 41% | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | | | | | 16% | | | | | | 68,559 | | | | | | 76,910 | | | | | | (11)% | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | | | | | (2)% | | | | | | 33,741 | | | | | | 26,289 | | | | | | 28% | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | | | | | 70% | | | | | | 27,409 | | | | | | 29,734 | | | | | | (8)% | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | | | | | 20% | | | | | | 145,840 | | | | | | 144,360 | | | | | | 1% | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | | | | | (4)% | | | | | | (82,360) | | | | | | (104,714) | | | | | | (21)% | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | | | | | 385% | | | | | | (3,106) | | | | | | (4,396) | | | | | | (29)% | | |
Loss before benefit for income taxes | | | | | (46,019) | | | | | | (53,942) | | | | | | (15)% | | | | | | (85,466) | | | | | | (109,110) | | | | | | (22)% | | |
(Provision) benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | NM | | | | | | (6) | | | | | | (5) | | | | | | 20% | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | | | | | (18)% | | | | | $ | (85,472) | | | | | $ | (109,115) | | | | | | (22)% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||||||||||||||
(in thousands, except percentages) | | | 2021 | | | 2020 | | | % Change | | | 2020 | | | 2019 | | | % Change | | ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscription fees | | | | $ | 38,245 | | | | | $ | 20,783 | | | | | | 84% | | | | | $ | 47,544 | | | | | $ | 27,088 | | | | | | 76% | | |
Transactional revenue | | | | | 8,975 | | | | | | 8,154 | | | | | | 10% | | | | | | 15,936 | | | | | | 12,558 | | | | | | 27% | | |
Total revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | | 63% | | | | | $ | 63,480 | | | | | $ | 39,646 | | | | | | 60% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Stock-based compensation | | | | $ | 9,427 | | | | | $ | 1,755 | | | | | $ | 2,030 | | | | | $ | 7,879 | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Net Loss | | | | $ | (44,372) | | | | | $ | (53,942) | | | | | $ | (85,472) | | | | | $ | (109,115) | | |
Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | | | | (1,647) | | | | | | — | | | | | | 6 | | | | | | 5 | | |
Interest expense (income), net | | | | | (914) | | | | | | (344) | | | | | | 2,530 | | | | | | 4,811 | | |
Depreciation and amortization on fixed assets and intangible assets | | | | | 1,198 | | | | | | 926 | | | | | | 1,875 | | | | | | 1,303 | | |
EBITDA | | | | | (45,735) | | | | | | (53,360) | | | | | | (81,061) | | | | | | (102,996) | | |
Non-cash in-kind service amortization of preferred stock(1) | | | | | 6,938 | | | | | | 19,803 | | | | | | 31,435 | | | | | | 18,082 | | |
Stock-based compensation | | | | | 11,269 | | | | | | 2,936 | | | | | | 4,510 | | | | | | 9,922 | | |
(Gain) loss on investment securities | | | | | (3,509) | | | | | | 2,003 | | | | | | 816 | | | | | | — | | |
Acquisition-related charges(2) | | | | | 760 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | (30,277) | | | | | $ | (28,618) | | | | | $ | (44,300) | | | | | $ | (74,992) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Net cash used in operating activities | | | | $ | (14,867) | | | | | $ | (28,922) | | | | | $ | (45,289) | | | | | $ | (72,895) | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | | | | | (685) | | | | | | (2,463) | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | | | | | 23,126 | | | | | | 103,230 | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 35,343 | | | | | $ | (29,322) | | | | | $ | (22,848) | | | | | $ | 27,872 | | |
| | | | | | | | | For the years ending September 30, | | |||||||||||||||||||||
| | | Total | | | 2021 | | | 2022 – 2023 | | | 2024 – 2025 | | | Thereafter | | |||||||||||||||
Convertible notes | | | | $ | 77,754 | | | | | $ | — | | | | | $ | 77,754 | | | | | $ | — | | | | | $ | — | | |
Operating leases | | | | | 16,332 | | | | | | 3,163 | | | | | | 6,017 | | | | | | 6,110 | | | | | | 1,042 | | |
Total contractual obligations | | | | $ | 94,086 | | | | | $ | 3,163 | | | | | $ | 83,771 | | | | | $ | 6,110 | | | | | $ | 1,042 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | |||||||||
| | | Before the Business Combination | | | | | | | | | | | | | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | | Number of shares of Pioneer Class A Common Stock | | | % | | | Number of shares of Pioneer Class B Common Stock(2) | | | % | | | Number of Shares of Acorns Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | ||||||||||||||||||
Directors and Executive Officers of Pioneer(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jonathan Christodoro | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,500 | | | | | | * | | | | | | | | | | | | | | |
Rick Gerson(3) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Todd Davis | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mitchell Caplan | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Oscar Salazar | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of Pioneer (8 Individuals) | | | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 100.0% | | | | | | 12,500 | | | | | | * | | | | | | | | | | | | | | |
Five Percent Holders of Pioneer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pioneer Merger Sponsor LLC(1)(3) | | | | | — | | | | | | — | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Falcon Edge Capital, LP(1)(4) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rick Gerson(1)(3) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bleichroeder LP(5) | | | | | 2,282,285 | | | | | | 5.7 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | |||||||||
| | | Before the Business Combination | | | | | | | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | | Number of shares of Pioneer Class A Common Stock | | | % | | | Number of shares of Pioneer Class B Common Stock(2) | | | % | | | Number of Shares of Acorns Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | ||||||||||||
Entities Affiliated with Sculptor Capital LP(7) | | | | | 2,130,822 | | | | | | 5.3 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | |
Directors and Executive Officers of New Acorns After Consummation of the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noah Kerner | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
David Hijirida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rich Sullivan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jasmine Lee | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Manning Field | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hugh Tamassia | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ashley Good | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
James Moorhead | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patricia Gonzales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of New Acorns as a Group ( Individuals) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Five Percent Holders of New Acorns After Consummation of the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware | | | Cayman Islands | |
Stockholder/Shareholder Approval of Business Combinations | | | Mergers generally require approval of a majority of all outstanding shares. Mergers in which less than 20% of the acquirer’s stock is issued generally do not require acquirer shareholder approval. Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or shareholders. | | | Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent. All mergers (other than parent/subsidiary mergers) require shareholder approval — there is no exception for smaller mergers. Where a bidder has acquired 90% or more of the shares in a Cayman Islands company, it can compel the acquisition of the shares of the remaining shareholders and thereby become the sole shareholder. A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50%+1 in number and 75% in value of shareholders in attendance and voting at a shareholders’ meeting. | |
Stockholder/Shareholder Votes for Routine Matters | | | Generally, approval of routine corporate matters that are put to a shareholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter. | | | Under Cayman Islands law and the Existing Governing Documents, routine corporate matters may be approved by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as being entitled to do so). | |
| | | Delaware | | | Cayman Islands | |
Appraisal Rights | | | Generally a shareholder of a publicly traded corporation does not have appraisal rights in connection with a merger. | | | Minority shareholders that dissent from a Cayman Islands statutory merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court. | |
Inspection of Books and Records | | | Any shareholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business. | | | Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company. | |
Stockholder/Shareholder Lawsuits | | | A shareholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum as per Pioneer Governing Documents Proposal D). | | | In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances. | |
Fiduciary Duties of Directors | | | Directors must exercise a duty of care and duty of loyalty and good faith to the company and its shareholders. | | | A director owes fiduciary duties to a company, including to exercise loyalty, honesty and good faith to the company as a whole. In addition to fiduciary duties, directors owe a duty of care, diligence and skill. Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances. | |
Indemnification of Directors and Officers | | | A corporation is generally permitted to indemnify its directors and officers acting in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation. | | | A Cayman Islands company generally may indemnify its directors or officers except with regard to fraud or willful default. | |
Limited Liability of Directors | | | Permits limiting or eliminating the monetary liability of a director to a corporation or its shareholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful repurchases or dividends, or improper personal benefit. | | | Liability of directors may be unlimited, except with regard to their own fraud or willful default. | |
Name | | | Age | | | Position | |
Executive Officers | | | | | | | |
Noah Kerner | | | 44 | | | Chief Executive Officer and Director Nominee | |
David Hijirida | | | 49 | | | President | |
Rich Sullivan | | | 48 | | | Chief Financial Officer | |
Jasmine Lee | | | 43 | | | Chief Operating Officer | |
Manning Field | | | 48 | | | Chief Business Officer | |
Hugh Tamassia | | | 51 | | | Chief Technology Officer | |
James Moorhead | | | 42 | | | Chief Marketing Officer | |
Ashley Good | | | 45 | | | Chief Legal Officer and Secretary | |
Patricia Gonzales | | | 42 | | | Vice President of Human Resources | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Average Subscribers | | | | | 3,626 | | | | | | 2,731 | | | | | | 2,970 | | | | | | 2,052 | | |
| | | As of March 31, | | | As of September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Subscribers | | | | | 4,010 | | | | | | 2,972 | | | | | | 3,355 | | | | | | 2,419 | | |
| | | As of March 31, | | | As of September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Premium tier mix | | | | | 41% | | | | | | 25% | | | | | | 32% | | | | | | 18% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Average revenue per user | | | | $ | 13.02 | | | | | $ | 10.60 | | | | | $ | 21.37 | | | | | $ | 19.32 | | |
Average annualized revenue per user | | | | $ | 26.04 | | | | | $ | 21.20 | | | | | $ | 21.37 | | | | | $ | 19.32 | | |
| | | Six months ended March 31, | | | Year ended September 30, | | ||||||||||||||||||
(in thousands, except percentages) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | $ | 63,480 | | | | | $ | 39,646 | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 16,131 | | | | | | 11,427 | | |
Gross margin rate | | | | | 82.3% | | | | | | 71.6% | | | | | | 74.6% | | | | | | 71.2% | | |
| | | Six Months Ended March 31, | | | | | | | | | Year Ended September 30, | | | | | | | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | % Change | | | 2020 | | | 2019 | | | % Change | | ||||||||||||||||||
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | | 63% | | | | | $ | 63,480 | | | | | $ | 39,646 | | | | | | 60% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | | | | | 1% | | | | | | 16,131 | | | | | | 11,427 | | | | | | 41% | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | | | | | 16% | | | | | | 68,559 | | | | | | 76,910 | | | | | | (11)% | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | | | | | (2)% | | | | | | 33,741 | | | | | | 26,289 | | | | | | 28% | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | | | | | 70% | | | | | | 27,409 | | | | | | 29,734 | | | | | | (8)% | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | | | | | 20% | | | | | | 145,840 | | | | | | 144,360 | | | | | | 1% | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | | | | | (4)% | | | | | | (82,360) | | | | | | (104,714) | | | | | | (21)% | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | | | | | 385% | | | | | | (3,106) | | | | | | (4,396) | | | | | | (29)% | | |
Loss before benefit for income taxes | | | | | (46,019) | | | | | | (53,942) | | | | | | (15)% | | | | | | (85,466) | | | | | | (109,110) | | | | | | (22)% | | |
(Provision) benefit for income taxes | | | | | 1,647 | | | | | | — | | | | | | NM | | | | | | (6) | | | | | | (5) | | | | | | 20% | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | | | | | (18)% | | | | | $ | (85,472) | | | | | $ | (109,115) | | | | | | (22)% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||||||||||||||
(in thousands, except percentages) | | | 2021 | | | 2020 | | | % Change | | | 2020 | | | 2019 | | | % Change | | ||||||||||||||||||
Revenue | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Subscription fees | | | | $ | 38,245 | | | | | $ | 20,783 | | | | | | 84% | | | | | $ | 47,544 | | | | | $ | 27,088 | | | | | | 76% | | |
Transactional revenue | | | | | 8,975 | | | | | | 8,154 | | | | | | 10% | | | | | | 15,936 | | | | | | 12,558 | | | | | | 27% | | |
Total revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | | | | | 63% | | | | | $ | 63,480 | | | | | $ | 39,646 | | | | | | 60% | | |
| | | Six Months Ended March 31, | | | Years Ended September 30, | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Stock-based compensation | | | | $ | 9,427 | | | | | $ | 1,755 | | | | | $ | 2,030 | | | | | $ | 7,879 | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Net Loss | | | | $ | (44,372) | | | | | $ | (53,942) | | | | | $ | (85,472) | | | | | $ | (109,115) | | |
Non-GAAP adjustments: | | | | | | | | | | | | | | | | | | | | | | | | | |
Income tax expense (benefit) | | | | | (1,647) | | | | | | — | | | | | | 6 | | | | | | 5 | | |
Interest expense (income), net | | | | | (914) | | | | | | (344) | | | | | | 2,530 | | | | | | 4,811 | | |
Depreciation and amortization on fixed assets and intangible assets | | | | | 1,198 | | | | | | 926 | | | | | | 1,875 | | | | | | 1,303 | | |
EBITDA | | | | | (45,735) | | | | | | (53,360) | | | | | | (81,061) | | | | | | (102,996) | | |
Non-cash in-kind service amortization of preferred stock(1) | | | | | 6,938 | | | | | | 19,803 | | | | | | 31,435 | | | | | | 18,082 | | |
Stock-based compensation | | | | | 11,269 | | | | | | 2,936 | | | | | | 4,510 | | | | | | 9,922 | | |
(Gain) loss on investment securities | | | | | (3,509) | | | | | | 2,003 | | | | | | 816 | | | | | | — | | |
Acquisition-related charges(2) | | | | | 760 | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | (30,277) | | | | | $ | (28,618) | | | | | $ | (44,300) | | | | | $ | (74,992) | | |
| | | Six Months Ended March 31, | | | Year Ended September 30, | | ||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | 2020 | | | 2019 | | ||||||||||||
Net cash used in operating activities | | | | $ | (14,867) | | | | | $ | (28,922) | | | | | $ | (45,289) | | | | | $ | (72,895) | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | | | | | (685) | | | | | | (2,463) | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | | | | | 23,126 | | | | | | 103,230 | | |
Net increase (decrease) in cash and cash equivalents | | | | $ | 35,343 | | | | | $ | (29,322) | | | | | $ | (22,848) | | | | | $ | 27,872 | | |
| | | | | | | | | For the years ending September 30, | | |||||||||||||||||||||
| | | Total | | | 2021 | | | 2022 – 2023 | | | 2024 – 2025 | | | Thereafter | | |||||||||||||||
Convertible notes | | | | $ | 77,754 | | | | | $ | — | | | | | $ | 77,754 | | | | | $ | — | | | | | $ | — | | |
Operating leases | | | | | 16,332 | | | | | | 3,163 | | | | | | 6,017 | | | | | | 6,110 | | | | | | 1,042 | | |
Total contractual obligations | | | | $ | 94,086 | | | | | $ | 3,163 | | | | | $ | 83,771 | | | | | $ | 6,110 | | | | | $ | 1,042 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | |||||||||
| | | Before the Business Combination | | | | | | | | | | | | | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | | Number of shares of Pioneer Class A Common Stock | | | % | | | Number of shares of Pioneer Class B Common Stock(2) | | | % | | | Number of Shares of Acorns Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | ||||||||||||||||||
Directors and Executive Officers of Pioneer(1): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jonathan Christodoro | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 12,500 | | | | | | * | | | | | | | | | | | | | | |
Rick Gerson(3) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Todd Davis | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Mitchell Caplan | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
Oscar Salazar | | | | | — | | | | | | — | | | | | | 40,000(6) | | | | | | * | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of Pioneer (8 Individuals) | | | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 100.0% | | | | | | 12,500 | | | | | | * | | | | | | | | | | | | | | |
Five Percent Holders of Pioneer: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pioneer Merger Sponsor LLC(1)(3) | | | | | — | | | | | | — | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Falcon Edge Capital, LP(1)(4) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rick Gerson(1)(3) | | | | | 4,450,000 | | | | | | 11.1 | | | | | | 9,942,500 | | | | | | 98.8% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bleichroeder LP(5) | | | | | 2,282,285 | | | | | | 5.7 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | After the Business Combination | | |||||||||
| | | Before the Business Combination | | | | | | | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner | | | Number of shares of Pioneer Class A Common Stock | | | % | | | Number of shares of Pioneer Class B Common Stock(2) | | | % | | | Number of Shares of Acorns Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | | Number of shares of New Acorns Common Stock | | | % | | ||||||||||||
Entities Affiliated with Sculptor Capital LP(7) | | | | | 2,130,822 | | | | | | 5.3 | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | | | | |
Directors and Executive Officers of New Acorns After Consummation of the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noah Kerner | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
David Hijirida | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Rich Sullivan | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jasmine Lee | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Manning Field | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Hugh Tamassia | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ashley Good | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
James Moorhead | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Patricia Gonzales | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
All Directors and Executive Officers of New Acorns as a Group ( Individuals) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Five Percent Holders of New Acorns After Consummation of the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Delaware | | | Cayman Islands | |
Stockholder/Shareholder Approval of Business Combinations | | | Mergers generally require approval of a majority of all outstanding shares. Mergers in which less than 20% of the acquirer’s stock is issued generally do not require acquirer shareholder approval. Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or shareholders. | | | Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent. All mergers (other than parent/subsidiary mergers) require shareholder approval — there is no exception for smaller mergers. Where a bidder has acquired 90% or more of the shares in a Cayman Islands company, it can compel the acquisition of the shares of the remaining shareholders and thereby become the sole shareholder. A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50%+1 in number and 75% in value of shareholders in attendance and voting at a shareholders’ meeting. | |
Stockholder/Shareholder Votes for Routine Matters | | | Generally, approval of routine corporate matters that are put to a shareholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter. | | | Under Cayman Islands law and the Existing Governing Documents, routine corporate matters may be approved by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as being entitled to do so). | |
| | | Delaware | | | Cayman Islands | |
Appraisal Rights | | | Generally a shareholder of a publicly traded corporation does not have appraisal rights in connection with a merger. | | | Minority shareholders that dissent from a Cayman Islands statutory merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court. | |
Inspection of Books and Records | | | Any shareholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business. | | | Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company. | |
Stockholder/Shareholder Lawsuits | | | A shareholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum as per Pioneer Governing Documents Proposal D). | | | In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances. | |
Fiduciary Duties of Directors | | | Directors must exercise a duty of care and duty of loyalty and good faith to the company and its shareholders. | | | A director owes fiduciary duties to a company, including to exercise loyalty, honesty and good faith to the company as a whole. In addition to fiduciary duties, directors owe a duty of care, diligence and skill. Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances. | |
Indemnification of Directors and Officers | | | A corporation is generally permitted to indemnify its directors and officers acting in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation. | | | A Cayman Islands company generally may indemnify its directors or officers except with regard to fraud or willful default. | |
Limited Liability of Directors | | | Permits limiting or eliminating the monetary liability of a director to a corporation or its shareholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful repurchases or dividends, or improper personal benefit. | | | Liability of directors may be unlimited, except with regard to their own fraud or willful default. | |
Name | | | Age | | | Position | |
Executive Officers | | | | | | | |
Noah Kerner | | | 44 | | | Chief Executive Officer and Director Nominee | |
David Hijirida | | | 49 | | | President | |
Rich Sullivan | | | 48 | | | Chief Financial Officer | |
Jasmine Lee | | | 43 | | | Chief Operating Officer | |
Manning Field | | | 48 | | | Chief Business Officer | |
Hugh Tamassia | | | 51 | | | Chief Technology Officer | |
James Moorhead | | | 42 | | | Chief Marketing Officer | |
Ashley Good | | | 45 | | | Chief Legal Officer and Secretary | |
Patricia Gonzales | | | 42 | | | Vice President of Human Resources | |
Name and Principal Position | | | Fiscal Year | | | Salary ($) | | | Bonus ($) | | | Option Awards ($)(2) | | | Total ($) | | |||||||||||||||
Noah Kerner Chief Executive Officer and Director | | | | | 2020 | | | | | $ | 250,000 | | | | | | — | | | | | | — | | | | | $ | 250,000 | | |
Jasmine Lee Chief Operating Officer and Chief Financial Officer | | | | | 2020 | | | | | $ | 250,000 | | | | | $ | 125,000(1) | | | | | $ | 1,302,659(3) | | | | | $ | 1,677,659 | | |
Ashley Good Chief Legal Officer and Secretary | | | | | 2020 | | | | | $ | 131,076(4) | | | | | | — | | | | | $ | 426,200 | | | | | $ | 557,276 | | |
Name | | | Grant Date | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Option Exercise Price ($) | | | Option Expiration Date | | |||||||||||||||
Noah Kerner | | | | | 9/3/2015 | | | | | | 175,000 | | | | | | 0 | | | | | $ | 0.70 | | | | | | 9/02/2025 | | |
| | | 4/25/2016 | | | | | | 500,000 | | | | | | 0 | | | | | $ | 0.92 | | | | | | 4/24/2026 | | | ||
| | | 7/20/2016 | | | | | | 500,000 | | | | | | 0 | | | | | $ | 0.92 | | | | | | 7/19/2026 | | | ||
| | | 9/23/2016 | | | | | | 435,000 | | | | | | 0 | | | | | $ | 0.92 | | | | | | 9/22/2026 | | | ||
| | | 12/4/2017 | | | | | | 1,293,750 | | | | | | 431,250(1) | | | | | $ | 1.06 | | | | | | 12/3/2027 | | | ||
Jasmine Lee | | | | | 11/19/2019 | | | | | | 201,750 | | | | | | 605,250(2) | | | | | $ | 2.95 | | | | | | 11/18/2029 | | |
| | | 7/29/2020 | | | | | | 16,561 | | | | | | 0(3) | | | | | $ | 3.05 | | | | | | 7/28/2030 | | | ||
Ashley Good | | | | | 6/18/2020 | | | | | | 0 | | | | | | 250,000(4) | | | | | $ | 3.05 | | | | | | 6/17/2030 | | |
Name (a) | | | Fees Earned or Paid in Cash ($) (b) | | | Total ($) (h) | | ||||||
Walter Cruttenden(1) | | | | $ | 0.00(1) | | | | | $ | 0.00 | | |
Adam Nash | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Gabrielle Sulzberger | | | | $ | 0.00 | | | | | $ | 0.00 | | |
Redemption Date (period to expiration of warrants) | | | Fair Market Value of New Acorns Common Stock | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| ≤ $10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥ 18.00 | | |||||||||||||||||||||||||||||
60 months | | | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
Redemption Date (period to expiration of warrants) | | | Fair Market Value of New Acorns Common Stock | | |||||||||||||||||||||||||||||||||||||||||||||||||||
| ≤ $10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥ 18.00 | | |||||||||||||||||||||||||||||
57 months | | | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months | | | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months | | | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months | | | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months | | | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months | | | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months | | | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months | | | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months | | | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months | | | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months | | | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months | | | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months | | | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months | | | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months | | | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months | | | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months | | | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months | | | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months | | | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months | | | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | | Page No. | | |||
PIONEER MERGER CORP. | | | | | | | |
Financial Statements: | | | | | | | |
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
Financial Statements: | | | | | | | |
| | | | F-21 | | | |
| | | | F-22 | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
ACORNS GROW INCORPORATED AND SUBSIDIARIES | | | |||||
Financial statements: | | | |||||
| | | | F-36 | | | |
| | | | F-37 | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
Financial statements: | | | |||||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | | ||
| | | | | |
| | | March 31, 2021 | | | December 31, 2020 | | ||||||
| (unaudited) | | | ||||||||||
Assets | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash | | | | $ | 392,089 | | | | | $ | — | | |
Prepaid expenses | | | | | 809,379 | | | | | | — | | |
Total current assets | | | | | 1,201,468 | | | | | | — | | |
Deferred offering costs | | | | | — | | | | | | 517,758 | | |
Investments held in Trust Account | | | | | 402,508,602 | | | | | | — | | |
Total Assets | | | | $ | 403,710,070 | | | | | $ | 517,758 | | |
Liabilities and Shareholders’ Equity | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 64,788 | | | | | $ | 25,324 | | |
Accrued expenses | | | | | 155,945 | | | | | | 387,058 | | |
Note payable – related party | | | | | — | | | | | | 115,388 | | |
Total current liabilities | | | | | 220,733 | | | | | | 527,770 | | |
Deferred underwriting commissions | | | | | 14,087,500 | | | | | | — | | |
Derivative warrant liabilities | | | | | 20,986,500 | | | | | | — | | |
Total liabilities | | | | | 35,294,733 | | | | | | 527,770 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A ordinary shares, $0.0001 par value; 36,341,533 shares subject to possible redemption at $10.00 per share as of March 31, 2021 | | | | | 363,415,330 | | | | | | — | | |
Shareholders’ Equity (Deficit) | | | | | | | | | | | | | |
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 3,908,467 shares issued and outstanding (excluding 36,341,533 shares subjection to possible redemption) as of March 31, 2021 | | | | | 391 | | | | | | — | | |
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 10,062,500 shares issued and outstanding | | | | | 1,006 | | | | | | 1,006 | | |
Additional paid-in capital | | | | | — | | | | | | 23,994 | | |
Retained earnings (accumulated deficit) | | | | | 4,998,610 | | | | | | (35,012) | | |
Total shareholders’ equity (deficit) | | | | | 5,000,007 | | | | | | (10,012) | | |
Total Liabilities and Shareholders’ Equity (Deficit) | | | | $ | 403,710,070 | | | | | $ | 517,758 | | |
| General and administrative expenses | | | | $ | 308,408 | | |
| General and administrative expenses – related party | | | | | 54,788 | | |
| Loss from operations | | | | | (363,196) | | |
| Other income (expenses) | | | | | | | |
| Loss on excess of fair value over cash received for Private Placment warrants | | | | | (737,000) | | |
| Change in fair value of derivative warrant liabilities | | | | | 8,583,830 | | |
| Financing costs – derivative warrant liabilities | | | | | (1,080,020) | | |
| Interest income from investments held in Trust Account | | | | | 8,602 | | |
| Net income | | | | $ | 6,412,216 | | |
| Basic and diluted weighted average shares outstanding of Class A ordinary shares | | | | | 40,250,000 | | |
| Basic and diluted net income per share, Class A ordinary shares | | | | $ | 0.00 | | |
| Basic and diluted weighted average shares outstanding of Class B non-redeemable shares | | | | | 9,902,083 | | |
| Basic and diluted net income per share, Class B non-redeemable shares | | | | $ | 0.65 | | |
| | | Ordinary Shares | | | Additional Paid-in Capital | | | Retained Earnings (Accumulated Deficit) | | | Total Shareholders’ Equity | | ||||||||||||||||||||||||||||||
| Class A | | | Class B | | ||||||||||||||||||||||||||||||||||||||
| Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance – December 31, 2020 | | | | | — | | | | | $ | — | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | 23,994 | | | | | $ | (35,012) | | | | | $ | (10,012) | | |
Sale of units in initial public offering, less allocation to derivative warrant liabilities | | | | | 40,250,000 | | | | | | 4,025 | | | | | | — | | | | | | — | | | | | | 383,712,645 | | | | | | — | | | | | | 383,716,670 | | |
Offering costs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (21,703,537) | | | | | | — | | | | | | (21,703,537) | | |
Shares subject to possible redemption | | | | | (36,341,533) | | | | | | (3,634) | | | | | | — | | | | | | — | | | | | | (362,033,102) | | | | | | (1,378,594) | | | | | | (363,415,330) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,412,216 | | | | | | 6,412,216 | | |
Balance – March 31, 2021 (unaudited) | | | | | 3,908,467 | | | | | $ | 391 | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | — | | | | | $ | 4,998,610 | | | | | $ | 5,000,007 | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net income | | | | $ | 6,412,216 | | |
| Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | |
| Interest income from investments held in Trust Account | | | | | (8,602) | | |
| Loss on excess of fair value over cash received for Private Placment warrants | | | | | 737,000 | | |
| Change in fair value of derivative warrant liabilities | | | | | (8,583,830) | | |
| Financing costs – derivative warrant liabilities | | | | | 1,080,020 | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Prepaid expenses | | | | | (809,379) | | |
| Accounts payable | | | | | 39,464 | | |
| Accrued expenses | | | | | 73,887 | | |
| Net cash used in operating activities | | | | | (1,059,224) | | |
| Cash Flows from Investing Activities: | | | | | | | |
| Cash deposited in Trust Account | | | | | (402,500,000) | | |
| Net cash used in investing activities | | | | | (402,500,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
| Proceeds from note payable to related party | | | | | 26,000 | | |
| Repayment of note payable to related party | | | | | (141,388) | | |
| Proceeds received from initial public offering, gross | | | | | 402,500,000 | | |
| Proceeds received from private placement | | | | | 10,050,000 | | |
| Offering costs paid | | | | | (8,483,299) | | |
| Net cash provided by financing activities | | | | | 403,951,313 | | |
| Net change in cash | | | | | 392,089 | | |
| Cash – beginning of the period | | | | | — | | |
| Cash – end of the period | | | | $ | 392,089 | | |
| Supplemental disclosure of noncash financing activities: | | | | | | | |
| Offering costs included in accrued expenses | | | | $ | 70,000 | | |
| Deferred underwriting commissions | | | | $ | 14,087,500 | | |
| Reversal of accrued offering costs | | | | $ | 375,000 | | |
| Initial value of Class A ordinary shares subject to possible redemption | | | | $ | 355,174,100 | | |
| Change in value of Class A ordinary shares subject to possible redemption | | | | $ | 8,241,230 | | |
| | | Fair Value Measured as of March 31, 2021 | | |||||||||||||||||||||
| Level 1 | | | Level 2 | | | Level 3 | | | Total | | ||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative warrant liabilities – Public warrants | | | | $ | 12,477,500 | | | | | $ | — | | | | | $ | — | | | | | $ | 12,477,500 | | |
Derivative warrant liabilities – Private warrants | | | | | — | | | | | | — | | | | | | 8,509,000 | | | | | | 8,509,000 | | |
Total fair value | | | | $ | 12,477,500 | | | | | $ | — | | | | | $ | 8,509,000 | | | | | $ | 20,986,500 | | |
| | | As of January 12, 2021 | | | As of March 31, 2021 | | ||||||
Exercise price | | | | | 11.50 | | | | | | 11.50 | | |
Stock Price | | | | | 10.00 | | | | | | 9.72 | | |
Option term (in years) | | | | | 5.00 | | | | | | 5.00 | | |
Volatility | | | | | 30% | | | | | | 20% | | |
Risk-free interest rate | | | | | 0.50% | | | | | | 0.92% | | |
| Level 3 – Derivative warrant liabilities at January 1, 2021 | | | | $ | — | | |
| Issuance of Public and Private Warrants | | | | | 29,570,330 | | |
| Transfer of Public Warrants to Level 1 | | | | | (18,783,330) | | |
| Change in fair value of derivative warrant liabilities | | | | | (2,278,000) | | |
| Level 3 – Derivative warrant liabilities at March 31, 2021 | | | | $ | 8,509,000 | | |
| | | As of January 12, 2021 | | |||||||||||||||
| As Previously Reported | | | Adjustment | | | As Revised | | |||||||||||
Balance Sheet | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 405,392,200 | | | | | $ | — | | | | | $ | 405,392,200 | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | |
Total current liabilities | | | | $ | 1,560,266 | | | | | $ | — | | | | | $ | 1,560,266 | | |
Deferred underwriting commissions | | | | | 14,087,500 | | | | | | — | | | | | | 14,087,500 | | |
Derivative warrant liabilities | | | | | — | | | | | | 29,570,330 | | | | | | 29,570,330 | | |
Total liabilities | | | | | 15,647,766 | | | | | | 29,570,330 | | | | | | 45,218,096 | | |
Class A ordinary shares, $0.0001 par value; shares subject to possible redemption | | | | | 384,744,430 | | | | | | (29,570,330) | | | | | | 355,174,100 | | |
Shareholders’ equity | | | | | | | | | | | | | | | | | | | |
Preferred stock – $0.0001 par value | | | | | — | | | | | | — | | | | | | — | | |
Class A ordinary shares – $0.0001 par value | | | | | 178 | | | | | | 295 | | | | | | 473 | | |
Class B ordinary shares – $0.0001 par value | | | | | 1,006 | | | | | | — | | | | | | 1,006 | | |
Additional paid-in-capital | | | | | 5,045,829 | | | | | | 1,816,725 | | | | | | 6,862,554 | | |
Accumulated deficit | | | | | (47,009) | | | | | | (1,817,020) | | | | | | (1,864,029) | | |
Total shareholders’ equity | | | | | 5,000,004 | | | | | | — | | | | | | 5,000,004 | | |
Total liabilities and shareholders’ equity | | | | $ | 405,392,200 | | | | | $ | — | | | | | $ | 405,392,200 | | |
| Assets | | | | | | | |
| Deferred offering costs | | | | $ | 517,758 | | |
| Total Assets | | | | $ | 517,758 | | |
| Liabilities and Shareholders’ Deficit | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | | | | $ | 25,324 | | |
| Accrued expenses | | | | | 387,058 | | |
| Note payable – related party | | | | | 115,388 | | |
| Total current liabilities | | | | | 527,770 | | |
| Total liabilities | | | | | 527,770 | | |
| Commitments and Contingencies | | | | | | | |
| Shareholders’ Deficit | | | | | | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 10,062,500 shares issued and outstanding(1) | | | | | 1,006 | | |
| Additional paid-in capital | | | | | 23,994 | | |
| Accumulated deficit | | | | | (35,012) | | |
| Total shareholders’ deficit | | | | | (10,012) | | |
| Total Liabilities and Shareholders’ Deficit | | | | $ | 517,758 | | |
| General and administrative expenses | | | | $ | 35,012 | | |
| Net loss | | | | $ | (35,012) | | |
| Basic and diluted weighted average shares outstanding of ordinary shares | | | | | 8,750,000 | | |
| Basic and diluted net loss per ordinary share | | | | $ | (0.00) | | |
| | | Ordinary Shares | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| Class A | | | Class B | | ||||||||||||||||||||||||||||||||||||||
| Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance – October 21, 2020 (inception) | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor | | | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 1,006 | | | | | | 23,994 | | | | | | — | | | | | | 25,000 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,012) | | | | | | (35,012) | | |
Balance – December 31, 2020 | | | | | — | | | | | $ | — | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | 23,994 | | | | | $ | (35,012) | | | | | $ | (10,012) | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net loss | | | | $ | (35,012) | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Accounts payable | | | | | 22,954 | | |
| Accrued expenses | | | | | 12,058 | | |
| Net cash used in operating activities | | | | | — | | |
| Net change in cash | | | | | — | | |
| Cash – beginning of the period | | | | | — | | |
| Cash – end of the period | | | | $ | — | | |
| Supplemental disclosure of noncash financing activities: | | | | | | | |
| Offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares | | | | $ | 25,000 | | |
| Offering costs included in accounts payable | | | | $ | 2,370 | | |
| Offering costs included in accrued expenses | | | | $ | 375,000 | | |
| Offering costs paid by Sponsor under promissory note | | | | $ | 115,388 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 81,142 | | | | | $ | 45,801 | | |
Restricted cash | | | | | 1,727 | | | | | | 1,725 | | |
Receivable from clearing organization | | | | | 54,216 | | | | | | 46,942 | | |
Accounts receivable, net | | | | | 6,129 | | | | | | 5,376 | | |
Prepaid expenses — related party | | | | | 16,446 | | | | | | 23,384 | | |
Prepaid expenses and other current assets | | | | | 12,459 | | | | | | 5,388 | | |
Total current assets | | | | | 172,119 | | | | | | 128,616 | | |
Property and equipment, net | | | | | 6,785 | | | | | | 7,455 | | |
Other non-current assets | | | | | 9,245 | | | | | | 1,245 | | |
Total assets | | | | $ | 188,149 | | | | | $ | 137,316 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | | | | | | | | | | |
Liabilities | | | | ||||||||||
Accounts payable and accrued expenses | | | | $ | 15,813 | | | | | $ | 5,850 | | |
Payable to customers | | | | | 54,959 | | | | | | 47,834 | | |
Other current liabilities | | | | | 20,020 | | | | | | 2,591 | | |
Total current liabilities | | | | | 90,792 | | | | | | 56,275 | | |
Convertible notes payable, net | | | | | 72,078 | | | | | | 21,038 | | |
Other non-current liabilities | | | | | 7,769 | | | | | | 10,291 | | |
Total liabilities | | | | | 170,639 | | | | | | 87,604 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Redeemable convertible preferred stock, at liquidation preference value | | | | | | | | | | | | | |
Series E-2 convertible preferred stock; $0.001 par value; 4,893,360 shares authorized as of March 31, 2021 and September 30, 2020; 1,835,011 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 26,192 | | | | | | 25,568 | | |
Series E-1 convertible preferred stock; $0.001 par value; 18,555,408 shares authorized as of March 31, 2021 and September 30, 2020; 16,293,279 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 211,968 | | | | | | 207,191 | | |
Series D-1 convertible preferred stock; $0.001 par value; 4,907,478 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 30,187 | | | | | | 29,555 | | |
Series D convertible preferred stock; $0.001 par value; 9,882,033 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 54,963 | | | | | | 53,849 | | |
Series C convertible preferred stock; $0.001 par value; 8,717,154 shares authorized; 8,657,292 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 33,836 | | | | | | 33,183 | | |
Series B convertible preferred stock; $0.001 par value; 5,000,000 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 7,150 | | | | | | 7,012 | | |
Series A convertible preferred stock; $0.001 par value; 4,166,666 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 3,218 | | | | | | 3,155 | | |
Total redeemable convertible preferred stock | | | | | 367,514 | | | | | | 359,513 | | |
Shareholders’ deficit | | | | | | | | | | | | | |
Common stock — $0.001 par value; 86,500,000 and 82,500,000 shares authorized as of March 31, 2021 and September 30, 2020, respectively; 12,938,477 and 12,432,325 shares issued and outstanding as of March 31, 2021 and September 30, 2020, respectively | | | | | 13 | | | | | | 12 | | |
Additional paid-in capital | | | | | 4,168 | | | | | | — | | |
Accumulated deficit | | | | | (354,185) | | | | | | (309,813) | | |
Total shareholders’ deficit | | | | | (350,004) | | | | | | (309,801) | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | $ | 188,149 | | | | | $ | 137,316 | | |
| | Six months ended March 31, | | | Six months ended March 31, | | ||||||||||||||||||||
| | 2021 | | 2020 | | | 2021 | | 2020 | | ||||||||||||||||
Revenue | | | $ | 47,220 | | | | $ | 28,937 | | | | | $ | 47,220 | | | | $ | 28,937 | | | ||||
Costs and expenses | | | | | | | | | | | | | | | | | | | | | | | ||||
Cost of revenue | | | | 8,335 | | | | | 8,213 | | | | | | 8,335 | | | | | 8,213 | | | ||||
Sales and marketing | | | | 47,365 | | | | | 40,889 | | | | | | 47,365 | | | | | 40,889 | | | ||||
Research and development | | | | 17,361 | | | | | 17,742 | | | | | | 17,361 | | | | | 17,742 | | | ||||
General and administrative | | | | 24,651 | | | | | 14,467 | | | | | | 24,651 | | | | | 14,467 | | | ||||
Total costs and expenses | | | | 97,712 | | | | | 81,311 | | | | | | 97,712 | | | | | 81,311 | | | ||||
Loss from operations | | | | (50,492) | | | | | (52,374) | | | | | | (50,492) | | | | | (52,374) | | | ||||
Interest and other income (expense), net | | | | 4,473 | | | | | (1,568) | | | | | | 4,473 | | | | | (1,568) | | | ||||
Loss before provision for income taxes | | | | (46,019) | | | | | (53,942) | | | |||||||||||||||
Loss before benefit for income taxes | | | | (46,019) | | | | | (53,942) | | | |||||||||||||||
Benefit for income taxes | | | | 1,647 | | | | | — | | | | | | 1,647 | | | | | — | | | ||||
Net loss | | | | (44,372) | | | | | (53,942) | | | | | | (44,372) | | | | | (53,942) | | | ||||
Undistributed accumulated dividends on preferred stock | | | | (8,001) | | | | | (7,386) | | | | | | (8,001) | | | | | (7,386) | | | ||||
Net loss attributable to common shareholders | | | $ | (52,373) | | | | $ | (61,328) | | | | | $ | (52,373) | | | | $ | (61,328) | | | ||||
Net loss per share attributable to common shareholders: | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | $ | (4.05) | | | | $ | (5.15) | | | | | $ | (4.05) | | | | $ | (5.15) | | | ||||
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | | | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | | 12,923 | | | | | 11,897 | | | | | | 12,923 | | | | | 11,897 | | | ||||
Comprehensive loss | | | $ | (44,372) | | | | $ | (53,942) | | | | | $ | (44,372) | | | | $ | (53,942) | | |
| | | Redeemable Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balance — September 30, 2019 | | | | | 48,906,748 | | | | | $ | 319,182 | | | | | | | 11,704,203 | | | | | $ | 12 | | | | | $ | — | | | | | $ | (176) | | | | | $ | (214,065) | | | | | $ | (214,229) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (53,942) | | | | | | (53,942) | | |
Reclass of accumulated other comprehensive loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | 176 | | | | | | (176) | | | | | | — | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 360,708 | | | | | | — | | | | | | 319 | | | | | | — | | | | | | — | | | | | | 319 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2,936 | | | | | | — | | | | | | — | | | | | | 2,936 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 7,386 | | | | | | | — | | | | | | — | | | | | | (7,386) | | | | | | — | | | | | | — | | | | | | (7,386) | | |
Reclass of negative APIC to accumulated deficit | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 4,131 | | | | | | — | | | | | | (4,131) | | | | | | — | | |
Balance — March 31, 2020 | | | | | 48,906,748 | | | | | $ | 326,568 | | | | | | | 12,064,911 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (272,314) | | | | | $ | (272,302) | | |
Balance — September 30, 2020 | | | | | 50,741,759 | | | | | $ | 359,513 | | | | | | | 12,432,325 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (309,813) | | | | | $ | (309,801) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (44,372) | | | | | | (44,372) | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 541,795 | | | | | | 1 | | | | | | 900 | | | | | | — | | | | | | — | | | | | | 901 | | |
Repurchase of unvested common stock awards | | | | | — | | | | | | — | | | | | | | (35,643) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 11,269 | | | | | | — | | | | | | — | | | | | | 11,269 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 8,001 | | | | | | | — | | | | | | — | | | | | | (8,001) | | | | | | — | | | | | | — | | | | | | (8,001) | | |
Balance — March 31, 2021 | | | | | 50,741,759 | | | | | $ | 367,514 | | | | | | | 12,938,477 | | | | | $ | 13 | | | | | $ | 4,168 | | | | | $ | — | | | | | $ | (354,185) | | | | | $ | (350,004) | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 1,198 | | | | | | 926 | | |
Deferred income tax | | | | | (1,647) | | | | | | — | | |
Non-cash in-kind service amortization — related party | | | | | 6,938 | | | | | | 19,803 | | |
Stock-based compensation expense | | | | | 11,269 | | | | | | 2,936 | | |
Non-cash acquisition related charges | | | | | 760 | | | | | | — | | |
Non-cash interest expense (income) | | | | | (907) | | | | | | — | | |
(Gain) loss on investment securities | | | | | (3,553) | | | | | | 2,086 | | |
Other adjustments | | | | | (544) | | | | | | (303) | | |
Changes in operating assets and liabilities, net of acquisitions: | | | | | | | | | | | | | |
Receivable from clearing organization | | | | | (7,274) | | | | | | 1,123 | | |
Accounts receivable | | | | | (701) | | | | | | 985 | | |
Prepaid expenses and other current assets | | | | | (3,519) | | | | | | (6) | | |
Other assets | | | | | 68 | | | | | | (22) | | |
Accounts payable and accrued expenses | | | | | 9,850 | | | | | | (2,741) | | |
Payable to customers | | | | | 7,126 | | | | | | (799) | | |
Other current liabilities | | | | | 10,441 | | | | | | 1,032 | | |
Net cash used in operating activities | | | | | (14,867) | | | | | | (28,922) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (230) | | | | | | (542) | | |
Proceeds from sales of property and equipment | | | | | 13 | | | | | | — | | |
Cash paid for asset acquisitions, net of cash received | | | | | (441) | | | | | | — | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercises of stock options | | | | | 901 | | | | | | 319 | | |
Repayment of principal on line of credit | | | | | — | | | | | | (177) | | |
Proceeds from issuance of convertible notes, net of issuance costs | | | | | 49,967 | | | | | | — | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | |
Net (decrease) increase in cash and cash equivalents | | | | | 35,343 | | | | | | (29,322) | | |
Cash and cash equivalents and restricted cash at beginning of period | | | | | 47,526 | | | | | | 70,374 | | |
Cash and cash equivalents and restricted cash at end of period | | | | $ | 82,869 | | | | | $ | 41,052 | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Noncash investing and financing activities | | | | | | | | | | | | | |
Contingent consideration for asset acquisition | | | | $ | 6,229 | | | | | $ | — | | |
| | | Six Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Subscription fees | | | | $ | 38,245 | | | | | $ | 20,783 | | |
Transactional revenue | | | | | 8,975 | | | | | | 8,154 | | |
Total revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | |
| | | Cost | | |||
Contingent consideration | | | | $ | 6,229 | | |
Cash | | | | | 1,352 | | |
Transaction costs | | | | | 403 | | |
Total purchase price | | | | $ | 7,984 | | |
Asset (liability) acquired: | | | Fair Value | | |||
Cash | | | | $ | 1,714 | | |
Accounts receivable | | | | | 52 | | |
Trade names and trademarks | | | | | 249 | | |
Developed technology | | | | | 7,063 | | |
Customer relationships | | | | | 92 | | |
Assembled workforce | | | | | 573 | | |
Accounts payable and accrued expenses | | | | | (112) | | |
Deferred tax liability | | | | | (1,647) | | |
Total | | | | $ | 7,984 | | |
As of March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Investment securities | | | | $ | 7,401 | | | | | $ | 7,401 | | | | | $ | — | | | | | $ | — | | |
Total assets | | | | $ | 7,401 | | | | | $ | 7,401 | | | | | $ | — | | | | | $ | — | | |
Liabilities | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Contingent consideration | | | | $ | 6,988 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,988 | | |
Derivative liability | | | | | 2,452 | | | | | | — | | | | | | — | | | | | | 2,452 | | |
Total liabilities | | | | $ | 9,440 | | | | | $ | — | | | | | $ | — | | | | | $ | 9,440 | | |
As of September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Investment securities | | | | $ | 3,727 | | | | | $ | 3,727 | | | | | $ | — | | | | | $ | — | | |
Total assets | | | | $ | 3,727 | | | | | $ | 3,727 | | | | | $ | — | | | | | $ | — | | |
Liabilities | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Derivative liability | | | | $ | 4,431 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,431 | | |
Total liabilities | | | | $ | 4,431 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,431 | | |
| Balance at beginning of period | | | | $ | 4,431 | | |
| Additions | | | | | — | | |
| Changes in fair value | | | | | (1,979) | | |
| Balance at end of period | | | | $ | 2,452 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||
Principal amount | | | | $ | 77,754 | | | | | $ | 22,754 | | |
Accrued interest | | | | | 703 | | | | | | 280 | | |
Unamortized discount | | | | | (1,278) | | | | | | (1,860) | | |
Unamortized debt issuance costs | | | | | (5,101) | | | | | | (136) | | |
Total convertible notes payable, net | | | | $ | 72,078 | | | | | $ | 21,038 | | |
Fiscal year ending September 30, | | | Principal Due | | |||
2022 | | | | $ | 22,754 | | |
2023 | | | | | 55,000 | | |
Total | | | | $ | 77,754 | | |
| Accrued coupon interest expense added to principal balance | | | | $ | 423 | | |
| Amortization of debt discount on 2020 Notes | | | | | 582 | | |
| Amortization of deferred financing offering costs | | | | | 67 | | |
| Total convertible notes interest expense | | | | $ | 1,072 | | |
| | | Shares Authorized | | | Shares Issued and Outstanding | | | Original Per Share Issuance Price | | | Dividend Rate Per Annum | | | Carrying Amount (Redemption Value) | | | Liquidation Preference | | ||||||||||||||||||
Series E-2 | | | | | 4,893,360 | | | | | | 1,835,011 | | | | | $ | 13.6239 | | | | | $ | 0.6812 | | | | | $ | 26,192 | | | | | $ | 26,192 | | |
Series E-1 | | | | | 18,555,408 | | | | | | 16,293,279 | | | | | | 11.7323 | | | | | | 0.5866 | | | | | | 211,968 | | | | | | 211,968 | | |
Series D-1 | | | | | 4,907,478 | | | | | | 4,907,478 | | | | | | 5.1503 | | | | | | 0.2575 | | | | | | 30,187 | | | | | | 30,187 | | |
Series D | | | | | 9,882,033 | | | | | | 9,882,033 | | | | | | 4.4930 | | | | | | 0.2247 | | | | | | 54,963 | | | | | | 54,963 | | |
Series C | | | | | 8,717,154 | | | | | | 8,657,292 | | | | | | 3.0069 | | | | | | 0.1503 | | | | | | 33,836 | | | | | | 33,836 | | |
Series B | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 1.1000 | | | | | | 0.0550 | | | | | | 7,150 | | | | | | 7,150 | | |
Series A | | | | | 4,166,666 | | | | | | 4,166,666 | | | | | | 0.6000 | | | | | | 0.0300 | | | | | | 3,218 | | | | | | 3,218 | | |
| | | | | 56,122,099 | | | | | | 50,741,759 | | | | | | | | | | | | | | | | | $ | 367,514 | | | | | $ | 367,514 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||||||||||||||
| | | Accumulated Dividends Per Share | | | Aggregate Accumulated Dividends | | | Accumulated Dividends Per Share | | | Aggregate Accumulated Dividends | | ||||||||||||
Series E-2 | | | | $ | 0.65 | | | | | $ | 1,192 | | | | | $ | 0.31 | | | | | $ | 568 | | |
Series E-1 | | | | | 1.28 | | | | | | 20,810 | | | | | | 0.98 | | | | | | 16,033 | | |
Series D-1 | | | | | 1.00 | | | | | | 4,912 | | | | | | 0.87 | | | | | | 4,280 | | |
Series D | | | | | 1.07 | | | | | | 10,563 | | | | | | 0.96 | | | | | | 9,449 | | |
Series C | | | | | 0.90 | | | | | | 7,804 | | | | | | 0.83 | | | | | | 7,151 | | |
Series B | | | | | 0.33 | | | | | | 1,650 | | | | | | 0.30 | | | | | | 1,512 | | |
Series A | | | | | 0.17 | | | | | | 718 | | | | | | 0.16 | | | | | | 655 | | |
| | | | | | | | | | $ | 47,649 | | | | | | | | | | | $ | 39,648 | | |
| | | Total | | | Series E-2 | | | Series E-1 | | | Series D-1 | | | Series D | | | Series C | | | Series B | | | Series A | | ||||||||||||||||||||||||
Redemption value at September 30, 2020 | | | | $ | 359,513 | | | | | $ | 25,568 | | | | | $ | 207,191 | | | | | $ | 29,555 | | | | | $ | 53,849 | | | | | $ | 33,183 | | | | | $ | 7,012 | | | | | $ | 3,155 | | |
Accumulated dividends | | | | | 8,001 | | | | | | 624 | | | | | | 4,777 | | | | | | 632 | | | | | | 1,114 | | | | | | 653 | | | | | | 138 | | | | | | 63 | | |
Redemption value at March 31, 2021 | | | | $ | 367,514 | | | | | $ | 26,192 | | | | | $ | 211,968 | | | | | $ | 30,187 | | | | | $ | 54,963 | | | | | $ | 33,836 | | | | | $ | 7,150 | | | | | $ | 3,218 | | |
| | | Six Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Sales and marketing | | | | $ | 636 | | | | | $ | 60 | | |
Research and development | | | | | 386 | | | | | | 369 | | |
General and administrative | | | | | 10,247 | | | | | | 2,507 | | |
Total stock-based compensation expense | | | | $ | 11,269 | | | | | $ | 2,936 | | |
| | | Six Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Basic net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common stock outstanding | | | | | 12,923 | | | | | | 11,897 | | |
Basic and diluted net loss per share attributable to common shareholders | | | | $ | (4.05) | | | | | $ | (5.15) | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Stock options | | | | | 12,272,820 | | | | | | 10,774,271 | | |
Restricted stock awards | | | | | 251,228 | | | | | | 64,805 | | |
Common stock warrants | | | | | 360,516 | | | | | | 400,516 | | |
Convertible preferred stock | | | | | 50,741,759 | | | | | | 48,906,748 | | |
Series C convertible preferred stock warrants | | | | | 59,862 | | | | | | 59,862 | | |
2020 and 2021 convertible notes* | | | | | — | | | | | | — | | |
| Assets | | | | | | | |
| Deferred offering costs | | | | $ | 517,758 | | |
| Total Assets | | | | $ | 517,758 | | |
| Liabilities and Shareholders’ Deficit | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | | | | $ | 25,324 | | |
| Accrued expenses | | | | | 387,058 | | |
| Note payable – related party | | | | | 115,388 | | |
| Total current liabilities | | | | | 527,770 | | |
| Total liabilities | | | | | 527,770 | | |
| Commitments and Contingencies | | | | | | | |
| Shareholders’ Deficit | | | | | | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 10,062,500 shares issued and outstanding(1) | | | | | 1,006 | | |
| Additional paid-in capital | | | | | 23,994 | | |
| Accumulated deficit | | | | | (35,012) | | |
| Total shareholders’ deficit | | | | | (10,012) | | |
| Total Liabilities and Shareholders’ Deficit | | | | $ | 517,758 | | |
| General and administrative expenses | | | | $ | 35,012 | | |
| Net loss | | | | $ | (35,012) | | |
| Basic and diluted weighted average shares outstanding of ordinary shares | | | | | 8,750,000 | | |
| Basic and diluted net loss per ordinary share | | | | $ | (0.00) | | |
| | | Ordinary Shares | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| Class A | | | Class B | | ||||||||||||||||||||||||||||||||||||||
| Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance – October 21, 2020 (inception) | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor | | | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 1,006 | | | | | | 23,994 | | | | | | — | | | | | | 25,000 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,012) | | | | | | (35,012) | | |
Balance – December 31, 2020 | | | | | — | | | | | $ | — | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | 23,994 | | | | | $ | (35,012) | | | | | $ | (10,012) | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net loss | | | | $ | (35,012) | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Accounts payable | | | | | 22,954 | | |
| Accrued expenses | | | | | 12,058 | | |
| Net cash used in operating activities | | | | | — | | |
| Net change in cash | | | | | — | | |
| Cash – beginning of the period | | | | | — | | |
| Cash – end of the period | | | | $ | — | | |
| Supplemental disclosure of noncash financing activities: | | | | | | | |
| Offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares | | | | $ | 25,000 | | |
| Offering costs included in accounts payable | | | | $ | 2,370 | | |
| Offering costs included in accrued expenses | | | | $ | 375,000 | | |
| Offering costs paid by Sponsor under promissory note | | | | $ | 115,388 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 81,142 | | | | | $ | 45,801 | | |
Restricted cash | | | | | 1,727 | | | | | | 1,725 | | |
Receivable from clearing organization | | | | | 54,216 | | | | | | 46,942 | | |
Accounts receivable, net | | | | | 6,129 | | | | | | 5,376 | | |
Prepaid expenses — related party | | | | | 16,446 | | | | | | 23,384 | | |
Prepaid expenses and other current assets | | | | | 12,459 | | | | | | 5,388 | | |
Total current assets | | | | | 172,119 | | | | | | 128,616 | | |
Property and equipment, net | | | | | 6,785 | | | | | | 7,455 | | |
Other non-current assets | | | | | 9,245 | | | | | | 1,245 | | |
Total assets | | | | $ | 188,149 | | | | | $ | 137,316 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | | | | | | | | | | |
Liabilities | | | | ||||||||||
Accounts payable and accrued expenses | | | | $ | 15,813 | | | | | $ | 5,850 | | |
Payable to customers | | | | | 54,959 | | | | | | 47,834 | | |
Other current liabilities | | | | | 20,020 | | | | | | 2,591 | | |
Total current liabilities | | | | | 90,792 | | | | | | 56,275 | | |
Convertible notes payable, net | | | | | 72,078 | | | | | | 21,038 | | |
Other non-current liabilities | | | | | 7,769 | | | | | | 10,291 | | |
Total liabilities | | | | | 170,639 | | | | | | 87,604 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Redeemable convertible preferred stock, at liquidation preference value | | | | | | | | | | | | | |
Series E-2 convertible preferred stock; $0.001 par value; 4,893,360 shares authorized as of March 31, 2021 and September 30, 2020; 1,835,011 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 26,192 | | | | | | 25,568 | | |
Series E-1 convertible preferred stock; $0.001 par value; 18,555,408 shares authorized as of March 31, 2021 and September 30, 2020; 16,293,279 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 211,968 | | | | | | 207,191 | | |
Series D-1 convertible preferred stock; $0.001 par value; 4,907,478 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 30,187 | | | | | | 29,555 | | |
Series D convertible preferred stock; $0.001 par value; 9,882,033 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 54,963 | | | | | | 53,849 | | |
Series C convertible preferred stock; $0.001 par value; 8,717,154 shares authorized; 8,657,292 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 33,836 | | | | | | 33,183 | | |
Series B convertible preferred stock; $0.001 par value; 5,000,000 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 7,150 | | | | | | 7,012 | | |
Series A convertible preferred stock; $0.001 par value; 4,166,666 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 3,218 | | | | | | 3,155 | | |
Total redeemable convertible preferred stock | | | | | 367,514 | | | | | | 359,513 | | |
Shareholders’ deficit | | | | | | | | | | | | | |
Common stock — $0.001 par value; 86,500,000 and 82,500,000 shares authorized as of March 31, 2021 and September 30, 2020, respectively; 12,938,477 and 12,432,325 shares issued and outstanding as of March 31, 2021 and September 30, 2020, respectively | | | | | 13 | | | | | | 12 | | |
Additional paid-in capital | | | | | 4,168 | | | | | | — | | |
Accumulated deficit | | | | | (354,185) | | | | | | (309,813) | | |
Total shareholders’ deficit | | | | | (350,004) | | | | | | (309,801) | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | $ | 188,149 | | | | | $ | 137,316 | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | |
Costs and expenses | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | |
Loss before benefit for income taxes | | | | | (46,019) | | | | | | (53,942) | | |
Benefit for income taxes | | | | | 1,647 | | | | | | — | | |
Net loss | | | | | (44,372) | | | | | | (53,942) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | |
Net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (4.05) | | | | | $ | (5.15) | | |
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic and diluted | | | | | 12,923 | | | | | | 11,897 | | |
Comprehensive loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
| | | Redeemable Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balance — September 30, 2019 | | | | | 48,906,748 | | | | | $ | 319,182 | | | | | | | 11,704,203 | | | | | $ | 12 | | | | | $ | — | | | | | $ | (176) | | | | | $ | (214,065) | | | | | $ | (214,229) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (53,942) | | | | | | (53,942) | | |
Reclass of accumulated other comprehensive loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | 176 | | | | | | (176) | | | | | | — | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 360,708 | | | | | | — | | | | | | 319 | | | | | | — | | | | | | — | | | | | | 319 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2,936 | | | | | | — | | | | | | — | | | | | | 2,936 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 7,386 | | | | | | | — | | | | | | — | | | | | | (7,386) | | | | | | — | | | | | | — | | | | | | (7,386) | | |
Reclass of negative APIC to accumulated deficit | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 4,131 | | | | | | — | | | | | | (4,131) | | | | | | — | | |
Balance — March 31, 2020 | | | | | 48,906,748 | | | | | $ | 326,568 | | | | | | | 12,064,911 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (272,314) | | | | | $ | (272,302) | | |
Balance — September 30, 2020 | | | | | 50,741,759 | | | | | $ | 359,513 | | | | | | | 12,432,325 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (309,813) | | | | | $ | (309,801) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (44,372) | | | | | | (44,372) | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 541,795 | | | | | | 1 | | | | | | 900 | | | | | | — | | | | | | — | | | | | | 901 | | |
Repurchase of unvested common stock awards | | | | | — | | | | | | — | | | | | | | (35,643) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 11,269 | | | | | | — | | | | | | — | | | | | | 11,269 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 8,001 | | | | | | | — | | | | | | — | | | | | | (8,001) | | | | | | — | | | | | | — | | | | | | (8,001) | | |
Balance — March 31, 2021 | | | | | 50,741,759 | | | | | $ | 367,514 | | | | | | | 12,938,477 | | | | | $ | 13 | | | | | $ | 4,168 | | | | | $ | — | | | | | $ | (354,185) | | | | | $ | (350,004) | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 1,198 | | | | | | 926 | | |
Deferred income tax | | | | | (1,647) | | | | | | — | | |
Non-cash in-kind service amortization — related party | | | | | 6,938 | | | | | | 19,803 | | |
Stock-based compensation expense | | | | | 11,269 | | | | | | 2,936 | | |
Non-cash acquisition related charges | | | | | 760 | | | | | | — | | |
Non-cash interest expense (income) | | | | | (907) | | | | | | — | | |
(Gain) loss on investment securities | | | | | (3,553) | | | | | | 2,086 | | |
Other adjustments | | | | | (544) | | | | | | (303) | | |
Changes in operating assets and liabilities, net of acquisitions: | | | | | | | | | | | | | |
Receivable from clearing organization | | | | | (7,274) | | | | | | 1,123 | | |
Accounts receivable | | | | | (701) | | | | | | 985 | | |
Prepaid expenses and other current assets | | | | | (3,519) | | | | | | (6) | | |
Other assets | | | | | 68 | | | | | | (22) | | |
Accounts payable and accrued expenses | | | | | 9,850 | | | | | | (2,741) | | |
Payable to customers | | | | | 7,126 | | | | | | (799) | | |
Other current liabilities | | | | | 10,441 | | | | | | 1,032 | | |
Net cash used in operating activities | | | | | (14,867) | | | | | | (28,922) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (230) | | | | | | (542) | | |
Proceeds from sales of property and equipment | | | | | 13 | | | | | | — | | |
Cash paid for asset acquisitions, net of cash received | | | | | (441) | | | | | | — | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercises of stock options | | | | | 901 | | | | | | 319 | | |
Repayment of principal on line of credit | | | | | — | | | | | | (177) | | |
Proceeds from issuance of convertible notes, net of issuance costs | | | | | 49,967 | | | | | | — | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | |
Net (decrease) increase in cash and cash equivalents | | | | | 35,343 | | | | | | (29,322) | | |
Cash and cash equivalents and restricted cash at beginning of period | | | | | 47,526 | | | | | | 70,374 | | |
Cash and cash equivalents and restricted cash at end of period | | | | $ | 82,869 | | | | | $ | 41,052 | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Noncash investing and financing activities | | | | | | | | | | | | | |
Contingent consideration for asset acquisition | | | | $ | 6,229 | | | | | $ | — | | |
| Assets | | | | | | | |
| Deferred offering costs | | | | $ | 517,758 | | |
| Total Assets | | | | $ | 517,758 | | |
| Liabilities and Shareholders’ Deficit | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | | | | $ | 25,324 | | |
| Accrued expenses | | | | | 387,058 | | |
| Note payable – related party | | | | | 115,388 | | |
| Total current liabilities | | | | | 527,770 | | |
| Total liabilities | | | | | 527,770 | | |
| Commitments and Contingencies | | | | | | | |
| Shareholders’ Deficit | | | | | | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 10,062,500 shares issued and outstanding(1) | | | | | 1,006 | | |
| Additional paid-in capital | | | | | 23,994 | | |
| Accumulated deficit | | | | | (35,012) | | |
| Total shareholders’ deficit | | | | | (10,012) | | |
| Total Liabilities and Shareholders’ Deficit | | | | $ | 517,758 | | |
| General and administrative expenses | | | | $ | 35,012 | | |
| Net loss | | | | $ | (35,012) | | |
| Basic and diluted weighted average shares outstanding of ordinary shares | | | | | 8,750,000 | | |
| Basic and diluted net loss per ordinary share | | | | $ | (0.00) | | |
| | | Ordinary Shares | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| Class A | | | Class B | | ||||||||||||||||||||||||||||||||||||||
| Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||
Balance – October 21, 2020 (inception) | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor | | | | | — | | | | | | — | | | | | | 10,062,500 | | | | | | 1,006 | | | | | | 23,994 | | | | | | — | | | | | | 25,000 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (35,012) | | | | | | (35,012) | | |
Balance – December 31, 2020 | | | | | — | | | | | $ | — | | | | | | 10,062,500 | | | | | $ | 1,006 | | | | | $ | 23,994 | | | | | $ | (35,012) | | | | | $ | (10,012) | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net loss | | | | $ | (35,012) | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Accounts payable | | | | | 22,954 | | |
| Accrued expenses | | | | | 12,058 | | |
| Net cash used in operating activities | | | | | — | | |
| Net change in cash | | | | | — | | |
| Cash – beginning of the period | | | | | — | | |
| Cash – end of the period | | | | $ | — | | |
| Supplemental disclosure of noncash financing activities: | | | | | | | |
| Offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares | | | | $ | 25,000 | | |
| Offering costs included in accounts payable | | | | $ | 2,370 | | |
| Offering costs included in accrued expenses | | | | $ | 375,000 | | |
| Offering costs paid by Sponsor under promissory note | | | | $ | 115,388 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 81,142 | | | | | $ | 45,801 | | |
Restricted cash | | | | | 1,727 | | | | | | 1,725 | | |
Receivable from clearing organization | | | | | 54,216 | | | | | | 46,942 | | |
Accounts receivable, net | | | | | 6,129 | | | | | | 5,376 | | |
Prepaid expenses — related party | | | | | 16,446 | | | | | | 23,384 | | |
Prepaid expenses and other current assets | | | | | 12,459 | | | | | | 5,388 | | |
Total current assets | | | | | 172,119 | | | | | | 128,616 | | |
Property and equipment, net | | | | | 6,785 | | | | | | 7,455 | | |
Other non-current assets | | | | | 9,245 | | | | | | 1,245 | | |
Total assets | | | | $ | 188,149 | | | | | $ | 137,316 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | | | | | | | | | | |
Liabilities | | | | ||||||||||
Accounts payable and accrued expenses | | | | $ | 15,813 | | | | | $ | 5,850 | | |
Payable to customers | | | | | 54,959 | | | | | | 47,834 | | |
Other current liabilities | | | | | 20,020 | | | | | | 2,591 | | |
Total current liabilities | | | | | 90,792 | | | | | | 56,275 | | |
Convertible notes payable, net | | | | | 72,078 | | | | | | 21,038 | | |
Other non-current liabilities | | | | | 7,769 | | | | | | 10,291 | | |
Total liabilities | | | | | 170,639 | | | | | | 87,604 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Redeemable convertible preferred stock, at liquidation preference value | | | | | | | | | | | | | |
Series E-2 convertible preferred stock; $0.001 par value; 4,893,360 shares authorized as of March 31, 2021 and September 30, 2020; 1,835,011 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 26,192 | | | | | | 25,568 | | |
Series E-1 convertible preferred stock; $0.001 par value; 18,555,408 shares authorized as of March 31, 2021 and September 30, 2020; 16,293,279 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 211,968 | | | | | | 207,191 | | |
Series D-1 convertible preferred stock; $0.001 par value; 4,907,478 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 30,187 | | | | | | 29,555 | | |
Series D convertible preferred stock; $0.001 par value; 9,882,033 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 54,963 | | | | | | 53,849 | | |
Series C convertible preferred stock; $0.001 par value; 8,717,154 shares authorized; 8,657,292 shares issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 33,836 | | | | | | 33,183 | | |
Series B convertible preferred stock; $0.001 par value; 5,000,000 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 7,150 | | | | | | 7,012 | | |
Series A convertible preferred stock; $0.001 par value; 4,166,666 shares authorized, issued and outstanding as of March 31, 2021 and September 30, 2020 | | | | | 3,218 | | | | | | 3,155 | | |
Total redeemable convertible preferred stock | | | | | 367,514 | | | | | | 359,513 | | |
Shareholders’ deficit | | | | | | | | | | | | | |
Common stock — $0.001 par value; 86,500,000 and 82,500,000 shares authorized as of March 31, 2021 and September 30, 2020, respectively; 12,938,477 and 12,432,325 shares issued and outstanding as of March 31, 2021 and September 30, 2020, respectively | | | | | 13 | | | | | | 12 | | |
Additional paid-in capital | | | | | 4,168 | | | | | | — | | |
Accumulated deficit | | | | | (354,185) | | | | | | (309,813) | | |
Total shareholders’ deficit | | | | | (350,004) | | | | | | (309,801) | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | $ | 188,149 | | | | | $ | 137,316 | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | |
Costs and expenses | | | | | | | | | | | | | |
Cost of revenue | | | | | 8,335 | | | | | | 8,213 | | |
Sales and marketing | | | | | 47,365 | | | | | | 40,889 | | |
Research and development | | | | | 17,361 | | | | | | 17,742 | | |
General and administrative | | | | | 24,651 | | | | | | 14,467 | | |
Total costs and expenses | | | | | 97,712 | | | | | | 81,311 | | |
Loss from operations | | | | | (50,492) | | | | | | (52,374) | | |
Interest and other income (expense), net | | | | | 4,473 | | | | | | (1,568) | | |
Loss before benefit for income taxes | | | | | (46,019) | | | | | | (53,942) | | |
Benefit for income taxes | | | | | 1,647 | | | | | | — | | |
Net loss | | | | | (44,372) | | | | | | (53,942) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | |
Net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (4.05) | | | | | $ | (5.15) | | |
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic and diluted | | | | | 12,923 | | | | | | 11,897 | | |
Comprehensive loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
| | | Redeemable Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balance — September 30, 2019 | | | | | 48,906,748 | | | | | $ | 319,182 | | | | | | | 11,704,203 | | | | | $ | 12 | | | | | $ | — | | | | | $ | (176) | | | | | $ | (214,065) | | | | | $ | (214,229) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (53,942) | | | | | | (53,942) | | |
Reclass of accumulated other comprehensive loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | 176 | | | | | | (176) | | | | | | — | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 360,708 | | | | | | — | | | | | | 319 | | | | | | — | | | | | | — | | | | | | 319 | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 2,936 | | | | | | — | | | | | | — | | | | | | 2,936 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 7,386 | | | | | | | — | | | | | | — | | | | | | (7,386) | | | | | | — | | | | | | — | | | | | | (7,386) | | |
Reclass of negative APIC to accumulated deficit | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 4,131 | | | | | | — | | | | | | (4,131) | | | | | | — | | |
Balance — March 31, 2020 | | | | | 48,906,748 | | | | | $ | 326,568 | | | | | | | 12,064,911 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (272,314) | | | | | $ | (272,302) | | |
Balance — September 30, 2020 | | | | | 50,741,759 | | | | | $ | 359,513 | | | | | | | 12,432,325 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (309,813) | | | | | $ | (309,801) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (44,372) | | | | | | (44,372) | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 541,795 | | | | | | 1 | | | | | | 900 | | | | | | — | | | | | | — | | | | | | 901 | | |
Repurchase of unvested common stock awards | | | | | — | | | | | | — | | | | | | | (35,643) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 11,269 | | | | | | — | | | | | | — | | | | | | 11,269 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 8,001 | | | | | | | — | | | | | | — | | | | | | (8,001) | | | | | | — | | | | | | — | | | | | | (8,001) | | |
Balance — March 31, 2021 | | | | | 50,741,759 | | | | | $ | 367,514 | | | | | | | 12,938,477 | | | | | $ | 13 | | | | | $ | 4,168 | | | | | $ | — | | | | | $ | (354,185) | | | | | $ | (350,004) | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 1,198 | | | | | | 926 | | |
Deferred income tax | | | | | (1,647) | | | | | | — | | |
Non-cash in-kind service amortization — related party | | | | | 6,938 | | | | | | 19,803 | | |
Stock-based compensation expense | | | | | 11,269 | | | | | | 2,936 | | |
Non-cash acquisition related charges | | | | | 760 | | | | | | — | | |
Non-cash interest expense (income) | | | | | (907) | | | | | | — | | |
(Gain) loss on investment securities | | | | | (3,553) | | | | | | 2,086 | | |
Other adjustments | | | | | (544) | | | | | | (303) | | |
Changes in operating assets and liabilities, net of acquisitions: | | | | | | | | | | | | | |
Receivable from clearing organization | | | | | (7,274) | | | | | | 1,123 | | |
Accounts receivable | | | | | (701) | | | | | | 985 | | |
Prepaid expenses and other current assets | | | | | (3,519) | | | | | | (6) | | |
Other assets | | | | | 68 | | | | | | (22) | | |
Accounts payable and accrued expenses | | | | | 9,850 | | | | | | (2,741) | | |
Payable to customers | | | | | 7,126 | | | | | | (799) | | |
Other current liabilities | | | | | 10,441 | | | | | | 1,032 | | |
Net cash used in operating activities | | | | | (14,867) | | | | | | (28,922) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (230) | | | | | | (542) | | |
Proceeds from sales of property and equipment | | | | | 13 | | | | | | — | | |
Cash paid for asset acquisitions, net of cash received | | | | | (441) | | | | | | — | | |
Net cash used in investing activities | | | | | (658) | | | | | | (542) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercises of stock options | | | | | 901 | | | | | | 319 | | |
Repayment of principal on line of credit | | | | | — | | | | | | (177) | | |
Proceeds from issuance of convertible notes, net of issuance costs | | | | | 49,967 | | | | | | — | | |
Net cash provided by financing activities | | | | | 50,868 | | | | | | 142 | | |
Net (decrease) increase in cash and cash equivalents | | | | | 35,343 | | | | | | (29,322) | | |
Cash and cash equivalents and restricted cash at beginning of period | | | | | 47,526 | | | | | | 70,374 | | |
Cash and cash equivalents and restricted cash at end of period | | | | $ | 82,869 | | | | | $ | 41,052 | | |
| | | Six months ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Noncash investing and financing activities | | | | | | | | | | | | | |
Contingent consideration for asset acquisition | | | | $ | 6,229 | | | | | $ | — | | |
| | | Six Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Subscription fees | | | | $ | 38,245 | | | | | $ | 20,783 | | |
Transactional revenue | | | | | 8,975 | | | | | | 8,154 | | |
Total revenue | | | | $ | 47,220 | | | | | $ | 28,937 | | |
| | | Cost | | |||
Contingent consideration | | | | $ | 6,229 | | |
Cash | | | | | 1,352 | | |
Transaction costs | | | | | 403 | | |
Total purchase price | | | | $ | 7,984 | | |
Asset (liability) acquired: | | | Fair Value | | |||
Cash | | | | $ | 1,714 | | |
Accounts receivable | | | | | 52 | | |
Trade names and trademarks | | | | | 249 | | |
Developed technology | | | | | 7,063 | | |
Customer relationships | | | | | 92 | | |
Assembled workforce | | | | | 573 | | |
Accounts payable and accrued expenses | | | | | (112) | | |
Deferred tax liability | | | | | (1,647) | | |
Total | | | | $ | 7,984 | | |
As of March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Investment securities | | | | $ | 7,401 | | | | | $ | 7,401 | | | | | $ | — | | | | | $ | — | | |
Total assets | | | | $ | 7,401 | | | | | $ | 7,401 | | | | | $ | — | | | | | $ | — | | |
Liabilities | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Contingent consideration | | | | $ | 6,988 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,988 | | |
Derivative liability | | | | | 2,452 | | | | | | — | | | | | | — | | | | | | 2,452 | | |
Total liabilities | | | | $ | 9,440 | | | | | $ | — | | | | | $ | — | | | | | $ | 9,440 | | |
As of September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Investment securities | | | | $ | 3,727 | | | | | $ | 3,727 | | | | | $ | — | | | | | $ | — | | |
Total assets | | | | $ | 3,727 | | | | | $ | 3,727 | | | | | $ | — | | | | | $ | — | | |
Liabilities | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Derivative liability | | | | $ | 4,431 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,431 | | |
Total liabilities | | | | $ | 4,431 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,431 | | |
| Balance at beginning of period | | | | $ | 4,431 | | |
| Additions | | | | | — | | |
| Changes in fair value | | | | | (1,979) | | |
| Balance at end of period | | | | $ | 2,452 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||
Principal amount | | | | $ | 77,754 | | | | | $ | 22,754 | | |
Accrued interest | | | | | 703 | | | | | | 280 | | |
Unamortized discount | | | | | (1,278) | | | | | | (1,860) | | |
Unamortized debt issuance costs | | | | | (5,101) | | | | | | (136) | | |
Total convertible notes payable, net | | | | $ | 72,078 | | | | | $ | 21,038 | | |
Fiscal year ending September 30, | | | Principal Due | | |||
2022 | | | | $ | 22,754 | | |
2023 | | | | | 55,000 | | |
Total | | | | $ | 77,754 | | |
| Accrued coupon interest expense added to principal balance | | | | $ | 423 | | |
| Amortization of debt discount on 2020 Notes | | | | | 582 | | |
| Amortization of deferred financing offering costs | | | | | 67 | | |
| Total convertible notes interest expense | | | | $ | 1,072 | | |
| | | Shares Authorized | | | Shares Issued and Outstanding | | | Original Per Share Issuance Price | | | Dividend Rate Per Annum | | | Carrying Amount (Redemption Value) | | | Liquidation Preference | | ||||||||||||||||||
Series E-2 | | | | | 4,893,360 | | | | | | 1,835,011 | | | | | $ | 13.6239 | | | | | $ | 0.6812 | | | | | $ | 26,192 | | | | | $ | 26,192 | | |
Series E-1 | | | | | 18,555,408 | | | | | | 16,293,279 | | | | | | 11.7323 | | | | | | 0.5866 | | | | | | 211,968 | | | | | | 211,968 | | |
Series D-1 | | | | | 4,907,478 | | | | | | 4,907,478 | | | | | | 5.1503 | | | | | | 0.2575 | | | | | | 30,187 | | | | | | 30,187 | | |
Series D | | | | | 9,882,033 | | | | | | 9,882,033 | | | | | | 4.4930 | | | | | | 0.2247 | | | | | | 54,963 | | | | | | 54,963 | | |
Series C | | | | | 8,717,154 | | | | | | 8,657,292 | | | | | | 3.0069 | | | | | | 0.1503 | | | | | | 33,836 | | | | | | 33,836 | | |
Series B | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 1.1000 | | | | | | 0.0550 | | | | | | 7,150 | | | | | | 7,150 | | |
Series A | | | | | 4,166,666 | | | | | | 4,166,666 | | | | | | 0.6000 | | | | | | 0.0300 | | | | | | 3,218 | | | | | | 3,218 | | |
| | | | | 56,122,099 | | | | | | 50,741,759 | | | | | | | | | | | | | | | | | $ | 367,514 | | | | | $ | 367,514 | | |
| | | March 31, 2021 | | | September 30, 2020 | | ||||||||||||||||||
| | | Accumulated Dividends Per Share | | | Aggregate Accumulated Dividends | | | Accumulated Dividends Per Share | | | Aggregate Accumulated Dividends | | ||||||||||||
Series E-2 | | | | $ | 0.65 | | | | | $ | 1,192 | | | | | $ | 0.31 | | | | | $ | 568 | | |
Series E-1 | | | | | 1.28 | | | | | | 20,810 | | | | | | 0.98 | | | | | | 16,033 | | |
Series D-1 | | | | | 1.00 | | | | | | 4,912 | | | | | | 0.87 | | | | | | 4,280 | | |
Series D | | | | | 1.07 | | | | | | 10,563 | | | | | | 0.96 | | | | | | 9,449 | | |
Series C | | | | | 0.90 | | | | | | 7,804 | | | | | | 0.83 | | | | | | 7,151 | | |
Series B | | | | | 0.33 | | | | | | 1,650 | | | | | | 0.30 | | | | | | 1,512 | | |
Series A | | | | | 0.17 | | | | | | 718 | | | | | | 0.16 | | | | | | 655 | | |
| | | | | | | | | | $ | 47,649 | | | | | | | | | | | $ | 39,648 | | |
| | | Total | | | Series E-2 | | | Series E-1 | | | Series D-1 | | | Series D | | | Series C | | | Series B | | | Series A | | ||||||||||||||||||||||||
Redemption value at September 30, 2020 | | | | $ | 359,513 | | | | | $ | 25,568 | | | | | $ | 207,191 | | | | | $ | 29,555 | | | | | $ | 53,849 | | | | | $ | 33,183 | | | | | $ | 7,012 | | | | | $ | 3,155 | | |
Accumulated dividends | | | | | 8,001 | | | | | | 624 | | | | | | 4,777 | | | | | | 632 | | | | | | 1,114 | | | | | | 653 | | | | | | 138 | | | | | | 63 | | |
Redemption value at March 31, 2021 | | | | $ | 367,514 | | | | | $ | 26,192 | | | | | $ | 211,968 | | | | | $ | 30,187 | | | | | $ | 54,963 | | | | | $ | 33,836 | | | | | $ | 7,150 | | | | | $ | 3,218 | | |
| | | Six Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Sales and marketing | | | | $ | 636 | | | | | $ | 60 | | |
Research and development | | | | | 386 | | | | | | 369 | | |
General and administrative | | | | | 10,247 | | | | | | 2,507 | | |
Total stock-based compensation expense | | | | $ | 11,269 | | | | | $ | 2,936 | | |
| | | Six Months Ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Basic net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net loss | | | | $ | (44,372) | | | | | $ | (53,942) | | |
Undistributed accumulated dividends on preferred stock | | | | | (8,001) | | | | | | (7,386) | | |
Net loss attributable to common shareholders | | | | $ | (52,373) | | | | | $ | (61,328) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common stock outstanding | | | | | 12,923 | | | | | | 11,897 | | |
Basic and diluted net loss per share attributable to common shareholders | | | | $ | (4.05) | | | | | $ | (5.15) | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Stock options | | | | | 12,272,820 | | | | | | 10,774,271 | | |
Restricted stock awards | | | | | 251,228 | | | | | | 64,805 | | |
Common stock warrants | | | | | 360,516 | | | | | | 400,516 | | |
Convertible preferred stock | | | | | 50,741,759 | | | | | | 48,906,748 | | |
Series C convertible preferred stock warrants | | | | | 59,862 | | | | | | 59,862 | | |
2020 and 2021 convertible notes* | | | | | — | | | | | | — | | |
| | | September 30, 2020 | | | September 30, 2019 | | ||||||
Assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 45,801 | | | | | $ | 68,956 | | |
Restricted cash | | | | | 1,725 | | | | | | 1,418 | | |
Receivable from clearing organization | | | | | 46,942 | | | | | | 28,153 | | |
Accounts receivable, net | | | | | 5,376 | | | | | | 6,145 | | |
Prepaid expenses — related party | | | | | 23,384 | | | | | | 29,818 | | |
Prepaid expenses and other current assets | | | | | 5,388 | | | | | | 5,553 | | |
Total current assets | | | | | 128,616 | | | | | | 140,043 | | |
Property and equipment, net | | | | | 7,455 | | | | | | 8,683 | | |
Other non-current assets | | | | | 1,245 | | | | | | 1,311 | | |
Total assets | | | | $ | 137,316 | | | | | $ | 150,037 | | |
Liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 5,850 | | | | | $ | 7,572 | | |
Payable to customers | | | | | 47,834 | | | | | | 29,467 | | |
Other current liabilities | | | | | 2,591 | | | | | | 1,357 | | |
Total current liabilities | | | | | 56,275 | | | | | | 38,396 | | |
Convertible notes payable, net | | | | | 21,038 | | | | | | — | | |
Other non-current liabilities | | | | | 10,291 | | | | | | 6,688 | | |
Total liabilities | | | | | 87,604 | | | | | | 45,084 | | |
Commitments and contingencies (Note 13) | | | | | | | | | | | | | |
Redeemable convertible preferred stock, at liquidation preference value | | | | | | | | | | | | | |
Series E-2 convertible preferred stock; $0.001 par value; 4,893,360 shares authorized as of September 30, 2020 and 2019; 1,835,011 and 0 shares issued and outstanding as of September 30, 2020 and 2019, respectively | | | | | 25,568 | | | | | | — | | |
Series E-1 convertible preferred stock; $0.001 par value; 18,555,408 and 16,293,280 shares authorized as of September 30, 2020 and 2019, respectively; 16,293,279 shares issued and outstanding as of September 30, 2020 and 2019 | | | | | 207,191 | | | | | | 197,624 | | |
Series D-1 convertible preferred stock; $0.001 par value; 4,907,478 shares authorized, issued and outstanding as of September 30, 2020 and 2019 | | | | | 29,555 | | | | | | 28,288 | | |
Series D convertible preferred stock; $0.001 par value; 9,882,033 shares authorized, issued and outstanding as of September 30, 2020 and 2019 | | | | | 53,849 | | | | | | 51,625 | | |
Series C convertible preferred stock; $0.001 par value; 8,717,154 shares authorized; 8,657,292 shares issued and outstanding as of September 30, 2020 and 2019 | | | | | 33,183 | | | | | | 31,879 | | |
Series B convertible preferred stock; $0.001 par value; 5,000,000 shares authorized, issued and outstanding as of September 30, 2020 and 2019 | | | | | 7,012 | | | | | | 6,736 | | |
Series A convertible preferred stock; $0.001 par value; 4,166,666 shares authorized, issued and outstanding as of September 30, 2020 and 2019 | | | | | 3,155 | | | | | | 3,030 | | |
Total redeemable convertible preferred stock | | | | | 359,513 | | | | | | 319,182 | | |
Shareholders’ deficit | | | | | | | | | | | | | |
Common stock — $0.001 par value; 82,500,000 and 80,000,000 shares authorized as of September 30, 2020 and 2019, respectively; 12,432,325 and 11,704,203 shares issued and outstanding as of September 30, 2020 and 2019, respectively | | | | | 12 | | | | | | 12 | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (309,813) | | | | | | (214,065) | | |
Accumulated other comprehensive loss | | | | | — | | | | | | (176) | | |
Total shareholders’ deficit | | | | | (309,801) | | | | | | (214,229) | | |
Total liabilities, redeemable convertible preferred stock and shareholders’ deficit | | | | $ | 137,316 | | | | | $ | 150,037 | | |
| | | 2020 | | | 2019 | | ||||||
Revenue | | | | $ | 63,480 | | | | | $ | 39,646 | | |
Costs and expenses | | | | | | | | | | | | | |
Cost of revenue | | | | | 16,131 | | | | | | 11,427 | | |
Sales and marketing | | | | | 68,559 | | | | | | 76,910 | | |
Research and development | | | | | 33,741 | | | | | | 26,289 | | |
General and administrative | | | | | 27,409 | | | | | | 29,734 | | |
Total costs and expenses | | | | | 145,840 | | | | | | 144,360 | | |
Loss from operations | | | | | (82,360) | | | | | | (104,714) | | |
Interest and other income (expense), net | | | | | (3,106) | | | | | | (4,396) | | |
Loss before provision for income taxes | | | | | (85,466) | | | | | | (109,110) | | |
Provision for income taxes | | | | | (6) | | | | | | (5) | | |
Net loss | | | | | (85,472) | | | | | | (109,115) | | |
Undistributed accumulated dividends on preferred stock | | | | | (15,331) | | | | | | (11,648) | | |
Net loss attributable to common shareholders | | | | $ | (100,803) | | | | | $ | (120,763) | | |
Net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic and diluted | | | | $ | (8.41) | | | | | $ | (10.77) | | |
Weighted-average shares used in computing net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Basic and diluted | | | | | 11,992 | | | | | | 11,216 | | |
Other comprehensive loss: | | | | | | | | | | | | | |
Change in unrealized loss on available-for-sale securities (Note 4) | | | | | — | | | | | | (272) | | |
Total other comprehensive loss | | | | | — | | | | | | (272) | | |
Comprehensive loss | | | | $ | (85,472) | | | | | $ | (109,387) | | |
| | | Redeemable Convertible Preferred Stock | | | | Common Stock | | | Additional Paid-in Capital | | | Accumulated Other Comprehensive Income (Loss) | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | ||||||||||||||||||||||||||||||
| | | Shares | | | Amount | | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||
Balance — September 30, 2018 | | | | | 32,613,469 | | | | | $ | 116,376 | | | | | | | 10,515,819 | | | | | $ | 10 | | | | | $ | — | | | | | $ | 96 | | | | | $ | (103,529) | | | | | $ | (103,423) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (109,115) | | | | | | (109,115) | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (272) | | | | | | — | | | | | | (272) | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 1,188,384 | | | | | | 2 | | | | | | 856 | | | | | | — | | | | | | — | | | | | | 858 | | |
Issuance of Series E-1 preferred stock, net | | | | | 16,293,279 | | | | | | 191,158 | | | | | | | — | | | | | | — | | | | | | (551) | | | | | | — | | | | | | — | | | | | | (551) | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 9,922 | | | | | | — | | | | | | — | | | | | | 9,922 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 11,648 | | | | | | | — | | | | | | — | | | | | | (11,648) | | | | | | — | | | | | | — | | | | | | (11,648) | | |
Reclass of negative APIC to accumulated deficit | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 1,421 | | | | | | — | | | | | | (1,421) | | | | | | — | | |
Balance — September 30, 2019 | | | | | 48,906,748 | | | | | $ | 319,182 | | | | | | | 11,704,203 | | | | | | 12 | | | | | | — | | | | | | (176) | | | | | | (214,065) | | | | | | (214,229) | | |
Net loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (85,472) | | | | | | (85,472) | | |
Reclass of accumulated other comprehensive loss | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | 176 | | | | | | (176) | | | | | | — | | |
Exercise of stock options | | | | | — | | | | | | — | | | | | | | 728,122 | | | | | | — | | | | | | 721 | | | | | | — | | | | | | — | | | | | | 721 | | |
Issuance of Series E-2 preferred stock, net | | | | | 1,835,011 | | | | | | 25,000 | | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Stock-based compensation | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 4,510 | | | | | | — | | | | | | — | | | | | | 4,510 | | |
Accretion of preferred stock redemption preference | | | | | — | | | | | | 15,331 | | | | | | | — | | | | | | — | | | | | | (15,331) | | | | | | — | | | | | | — | | | | | | (15,331) | | |
Reclass of negative APIC to accumulated deficit | | | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 10,100 | | | | | | — | | | | | | (10,100) | | | | | | — | | |
Balance — September 30, 2020 | | | | | 50,741,759 | | | | | $ | 359,513 | | | | | | | 12,432,325 | | | | | $ | 12 | | | | | $ | — | | | | | $ | — | | | | | $ | (309,813) | | | | | $ | (309,801) | | |
| | | 2020 | | | 2019 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss | | | | $ | (85,472) | | | | | $ | (109,115) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 1,909 | | | | | | 1,303 | | |
Non-cash in-kind service amortization — related party | | | | | 31,435 | | | | | | 18,082 | | |
Stock-based compensation expense | | | | | 4,510 | | | | | | 9,922 | | |
Non-cash interest expense | | | | | 2,851 | | | | | | 6,257 | | |
Other adjustments | | | | | (714) | | | | | | 180 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Receivable from clearing organization | | | | | (18,789) | | | | | | (11,483) | | |
Accounts receivable | | | | | 769 | | | | | | (1,971) | | |
Prepaid expenses and other current assets | | | | | 176 | | | | | | 413 | | |
Other assets | | | | | (22) | | | | | | 3,313 | | |
Accounts payable and accrued expenses | | | | | (1,722) | | | | | | (1,824) | | |
Payable to customers | | | | | 18,367 | | | | | | 11,968 | | |
Other current liabilities | | | | | 1,413 | | | | | | 60 | | |
Net cash used in operating activities | | | | | (45,289) | | | | | | (72,895) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of property and equipment | | | | | (716) | | | | | | (9,417) | | |
Proceeds from sales of property and equipment | | | | | 31 | | | | | | 20 | | |
Receipt of leasehold improvement allowance | | | | | — | | | | | | 6,934 | | |
Net cash used in investing activities | | | | | (685) | | | | | | (2,463) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Proceeds from exercises of stock options | | | | | 721 | | | | | | 858 | | |
Repayment of principal on line of credit | | | | | (177) | | | | | | (2,077) | | |
Proceeds from issuance of Series E-1 convertible preferred stock, net of issuance costs | | | | | — | | | | | | 104,449 | | |
Proceeds from issuance of convertible notes, net of issuance costs | | | | | 22,582 | | | | | | — | | |
Net cash provided by financing activities | | | | | 23,126 | | | | | | 103,230 | | |
Net (decrease) increase in cash and cash equivalents | | | | | (22,848) | | | | | | 27,872 | | |
Cash and cash equivalents and restricted cash at beginning of year | | | | | 70,374 | | | | | | 42,502 | | |
Cash and cash equivalents and restricted cash at end of year | | | | $ | 47,526 | | | | | $ | 70,374 | | |
| | 2020 | | 2019 | | | 2020 | | 2019 | | ||||||||||||||||
Cash paid during the year for | | | | | | | | | | | | | | | | | | | | | | | ||||
Interest | | | $ | — | | | | $ | 56 | | | | | $ | — | | | | $ | 56 | | | ||||
Income taxes, net of refunds | | | $ | 6 | | | | $ | 5 | | | | | $ | 6 | | | | $ | 5 | | | ||||
Noncash investing and financing activities | | | | | | | | | | | | | | | | | | | | | | | ||||
Consideration received through issuance of Series E-1 convertible preferred stock for branding and advertising services. | | | $ | — | | | | $ | 47,900 | | | |||||||||||||||
Consideration received through issuance of Series E-1 convertible preferred stock for branding and advertising services | | | $ | — | | | | $ | 47,900 | | | |||||||||||||||
Conversion of convertible notes and accrued interest to Series E-1 convertible preferred stock | | | $ | — | | | | $ | 38,258 | | | | | $ | — | | | | $ | 38,258 | | | ||||
Consideration received through issuance of Series E-2 convertible preferred stock for branding and advertising services. | | | $ | 25,000 | | | | $ | — | | | |||||||||||||||
Consideration received through issuance of Series E-2 convertible preferred stock for branding and advertising services | | | $ | 25,000 | | | | $ | — | | |
| | | Years Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Subscription fees | | | | $ | 47,544 | | | | | $ | 27,088 | | |
Transactional revenue | | | | | 15,936 | | | | | | 12,558 | | |
Total revenue | | | | $ | 63,480 | | | | | $ | 39,646 | | |
As of September 30, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Investment securities | | | | $ | 3,727 | | | | | $ | 3,727 | | | | | $ | — | | | | | $ | — | | |
Total assets | | | | $ | 3,727 | | | | | $ | 3,727 | | | | | $ | — | | | | | $ | — | | |
Liabilities | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Derivative liability | | | | $ | 4,431 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,431 | | |
Total liabilities | | | | $ | 4,431 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,431 | | |
As of September 30, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
Investment securities | | | | $ | 3,987 | | | | | $ | 3,987 | | | | | $ | — | | | | | $ | — | | |
Total assets | | | | $ | 3,987 | | | | | $ | 3,987 | | | | | $ | — | | | | | $ | — | | |
| | | Year ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Balance at beginning of period | | | | $ | — | | | | | $ | 7,652 | | |
Addition for convertible notes discount | | | | | 2,332 | | | | | | — | | |
Reclass to preferred stock for conversions | | | | | — | | | | | | (7,652) | | |
Changes in fair value | | | | | 2,099 | | | | | | — | | |
Balance at end of period | | | | $ | 4,431 | | | | | $ | — | | |
| Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair value | | ||||||||||||||||||||||||||||||||||||||||||
| | Amortized cost | | Gross unrealized gains | | Gross unrealized losses | | Fair value | | |||||||||||||||||||||||||||||||||||||||||
Public company common stock | | | $ | 3,647 | | | | $ | — | | | | $ | 176 | | | | $ | 3,471 | | | | | $ | 3,647 | | | | $ | — | | | | $ | 176 | | | | $ | 3,471 | | | ||||||||
Exchange traded funds | | | | 516 | | | | | — | | | | | — | | | | | 516 | | | | | | 516 | | | | | — | | | | | — | | | | | 516 | | | ||||||||
Total investment securities | | | $ | 4,163 | | | | $ | — | | | | $ | 176 | | | | $ | 3,987 | | | | | $ | 4,163 | | | | $ | — | | | | $ | 176 | | | | $ | 3,987 | | |
September 30, 2020 | | | Accounts Receivable | | | Allowance for Doubtful Accounts | | | Accounts Receivable, net | | |||||||||
Subscription fees | | | | $ | 1,179 | | | | | $ | — | | | | | $ | 1,179 | | |
Transactional revenue | | | | | 4,388 | | | | | | (191) | | | | | | 4,197 | | |
Total | | | | $ | 5,567 | | | | | $ | (191) | | | | | $ | 5,376 | | |
September 30, 2019 | | | Accounts Receivable | | | Allowance for Doubtful Accounts | | | Accounts Receivable, net | | |||||||||
Subscription fees | | | | $ | 3,522 | | | | | $ | (593) | | | | | $ | 2,929 | | |
Transactional revenue | | | | | 3,372 | | | | | | (156) | | | | | | 3,216 | | |
Total | | | | $ | 6,894 | | | | | $ | (749) | | | | | $ | 6,145 | | |
| | | September 30, 2020 | | | September 30, 2019 | | ||||||
Computer equipment | | | | $ | 1,336 | | | | | $ | 1,265 | | |
Furniture and fixtures | | | | | 1,241 | | | | | | 1,084 | | |
Leasehold improvements | | | | | 7,891 | | | | | | 7,764 | | |
Total property and equipment | | | | | 10,468 | | | | | | 10,113 | | |
Accumulated depreciation and amortization | | | | | (3,013) | | | | | | (1,430) | | |
Property and equipment, net | | | | $ | 7,455 | | | | | $ | 8,683 | | |
| | | Years Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Current: | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | 6 | | | | | | 5 | | |
| | | | | 6 | | | | | | 5 | | |
Deferred: | | | | | | | | | | | | | |
Federal | | | | | — | | | | | | — | | |
State | | | | | — | | | | | | — | | |
| | | | | — | | | | | | — | | |
Total Income tax provision | | | | $ | 6 | | | | | $ | 5 | | |
| | | Years Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
U.S. federal statutory tax rate | | | | | 21.00% | | | | | | 21.00% | | |
State income taxes, net of federal tax benefit | | | | | 1.06 | | | | | | 1.78 | | |
Change in valuation allowance | | | | | (20.51) | | | | | | (20.86) | | |
Permanent differences | | | | | (1.61) | | | | | | (1.95) | | |
Other | | | | | 0.05 | | | | | | 0.03 | | |
Effective income tax rate | | | | | (0.01)% | | | | | | 0.00% | | |
| | | Years Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Stock compensation | | | | $ | 492 | | | | | $ | 341 | | |
Net operating losses | | | | | 58,003 | | | | | | 40,175 | | |
Depreciation and amortization | | | | | 582 | | | | | | 356 | | |
Other | | | | | 382 | | | | | | 2,353 | | |
Valuation allowance | | | | | (59,459) | | | | | | (43,142) | | |
Total deferred tax assets | | | | | — | | | | | | 83 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Mark to market | | | | | — | | | | | | (83) | | |
Total deferred tax liabilities | | | | | — | | | | | | (83) | | |
Total | | | | $ | — | | | | | $ | — | | |
| | | September 30, 2020 | | |||
Principal amount due in fiscal year 2022 | | | | $ | 22,754 | | |
Accrued interest | | | | | 280 | | |
Unamortized discount | | | | | (1,860) | | |
Unamortized debt issuance costs | | | | | (136) | | |
Total convertible notes payable, net | | | | $ | 21,038 | | |
| | | Shares Authorized | | | Shares Issued and Outstanding | | | Original Per Share Issuance Price | | | Dividend Rate Per Annum | | | Carrying Amount (Redemption Value) | | | Liquidation Preference | | ||||||||||||||||||
Series E-2 | | | | | 4,893,360 | | | | | | 1,835,011 | | | | | $ | 13.6239 | | | | | $ | 0.6812 | | | | | $ | 25,568 | | | | | $ | 25,568 | | |
Series E-1 | | | | | 18,555,408 | | | | | | 16,293,279 | | | | | | 11.7323 | | | | | | 0.5866 | | | | | | 207,191 | | | | | | 207,191 | | |
Series D-1 | | | | | 4,907,478 | | | | | | 4,907,478 | | | | | | 5.1503 | | | | | | 0.2575 | | | | | | 29,555 | | | | | | 29,555 | | |
Series D | | | | | 9,882,033 | | | | | | 9,882,033 | | | | | | 4.4930 | | | | | | 0.2247 | | | | | | 53,849 | | | | | | 53,849 | | |
Series C | | | | | 8,717,154 | | | | | | 8,657,292 | | | | | | 3.0069 | | | | | | 0.1503 | | | | | | 33,183 | | | | | | 33,183 | | |
Series B | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 1.1000 | | | | | | 0.0550 | | | | | | 7,012 | | | | | | 7,012 | | |
Series A | | | | | 4,166,666 | | | | | | 4,166,666 | | | | | | 0.6000 | | | | | | 0.0300 | | | | | | 3,155 | | | | | | 3,155 | | |
| | | | | 56,122,099 | | | | | | 50,741,759 | | | | | | | | | | | | | | | | | $ | 359,513 | | | | | $ | 359,513 | | |
| | | September 30, 2020 | | | September 30, 2019 | | ||||||||||||||||||
| | | Accumulated Dividends Per Share | | | Aggregate Accumulated Dividends | | | Accumulated Dividends Per Share | | | Aggregate Accumulated Dividends | | ||||||||||||
Series E-2 | | | | $ | 0.31 | | | | | $ | 568 | | | | | | N/A | | | | | | N/A | | |
Series E-1 | | | | | 0.98 | | | | | | 16,033 | | | | | $ | 0.40 | | | | | $ | 6,466 | | |
Series D-1 | | | | | 0.87 | | | | | | 4,280 | | | | | | 0.61 | | | | | | 3,013 | | |
Series D | | | | | 0.96 | | | | | | 9,449 | | | | | | 0.73 | | | | | | 7,225 | | |
Series C | | | | | 0.83 | | | | | | 7,151 | | | | | | 0.68 | | | | | | 5,847 | | |
Series B | | | | | 0.30 | | | | | | 1,512 | | | | | | 0.25 | | | | | | 1,236 | | |
Series A | | | | | 0.16 | | | | | | 655 | | | | | | 0.13 | | | | | | 530 | | |
| | | | | | | | | | $ | 39,648 | | | | | | | | | | | $ | 24,317 | | |
| | | Total | | | Series E-2 | | | Series E-1 | | | Series D-1 | | | Series D | | | Series C | | | Series B | | | Series A | | ||||||||||||||||||||||||
Redemption value at September 30, 2018 | | | | $ | 116,376 | | | | | $ | — | | | | | $ | — | | | | | $ | 27,025 | | | | | $ | 49,407 | | | | | $ | 30,578 | | | | | $ | 6,461 | | | | | $ | 2,905 | | |
Issuance of shares | | | | | 191,158 | | | | | | — | | | | | | 191,158 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accumulated dividend | | | | | 11,648 | | | | | | — | | | | | | 6,466 | | | | | | 1,263 | | | | | | 2,218 | | | | | | 1,301 | | | | | | 275 | | | | | | 125 | | |
Redemption value at September 30, 2019 | | | | | 319,182 | | | | | | — | | | | | $ | 197,624 | | | | | | 28,288 | | | | | | 51,625 | | | | | | 31,879 | | | | | | 6,736 | | | | | | 3,030 | | |
Issuance of shares | | | | | 25,000 | | | | | | 25,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Accumulated dividend | | | | | 15,331 | | | | | | 568 | | | | | | 9,567 | | | | | | 1,267 | | | | | | 2,224 | | | | | | 1,304 | | | | | | 276 | | | | | | 125 | | |
Redemption value at September 30, 2020 | | | | $ | 359,513 | | | | | $ | 25,568 | | | | | $ | 207,191 | | | | | $ | 29,555 | | | | | $ | 53,849 | | | | | $ | 33,183 | | | | | $ | 7,012 | | | | | $ | 3,155 | | |
| | | Years Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Sales and marketing | | | | $ | 105 | | | | | $ | 117 | | |
Research and development | | | | | 763 | | | | | | 650 | | |
General and administrative | | | | | 3,642 | | | | | | 9,155 | | |
Total stock-based compensation expense | | | | $ | 4,510 | | | | | $ | 9,922 | | |
| | | Years Ended September 30, | | |||
| | | 2020 | | | 2019 | |
Input | | | Range | | | Range | |
Exercise price | | | $2.95 — $3.05 | | | $1.20 — $2.95 | |
Expected volatility | | | 56.14% — 66.05% | | | 56.14% — 59.19% | |
Expected term (years) | | | 5.00 — 6.08 | | | 5.00 — 6.25 | |
Expected dividend yield | | | 0.00% | | | 0.00% | |
Risk-free interest rate | | | 0.25% — 1.67% | | | 1.46% — 2.85% | |
Weighted average grant date fair value | | | $1.66 | | | $1.55 | |
| | | Number of shares | | | Weighted average exercise price (per share) | | | Aggregate intrinsic value(1) | | | Weighted average remaining contractual term (in years) | | ||||||||||||
Options: | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at September 30, 2019 | | | | | 9,418,201 | | | | | $ | 1.44 | | | | | $ | 14,237,088 | | | | | | | | |
Granted | | | | | 2,710,156 | | | | | | 3.01 | | | | | | | | | | | | | | |
Exercised | | | | | (568,122) | | | | | | 1.08 | | | | | | 1,117,409 | | | | | | | | |
Forfeited or expired | | | | | (1,318,647) | | | | | | 2.08 | | | | | | | | | | | | | | |
Outstanding at September 30, 2020 | | | | | 10,241,588 | | | | | $ | 1.78 | | | | | $ | 12,982,504 | | | | | | 7.20 | | |
Exercisable as of September 30, 2020 | | | | | 6,376,623 | | | | | $ | 1.31 | | | | | $ | 11,125,511 | | | | | | 6.23 | | |
| | | Years Ended September 30, | | |||
| | | 2020 | | | 2019 | |
Input | | | Range | | | Range | |
Exercise price | | | $2.95 — $3.05 | | | $1.20 — $2.95 | |
Expected volatility | | | 56.09% — 57.89% | | | 55.99% — 57.00% | |
Expected term (years) | | | 10.00 | | | 7.74 — 10.00 | |
Expected dividend yield | | | 0.00% | | | 0.00% | |
Risk-free interest rate | | | 0.71% — 1.78% | | | 1.48% — 3.03% | |
Weighted average grant date fair value | | | $1.95 | | | $1.97 | |
| | | Number of shares | | | Weighted average exercise price (per share) | | | Aggregate intrinsic value(1) | | | Weighted average remaining contractual term (in years) | | ||||||||||||
Options: | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding at September 30, 2019 | | | | | 944,598 | | | | | $ | 0.86 | | | | | $ | 1,976,067 | | | | | | | | |
Granted | | | | | 19,435 | | | | | | 2.98 | | | | | | | | | | | | | | |
Exercised | | | | | (160,000) | | | | | | 0.66 | | | | | | 382,000 | | | | | | | | |
Outstanding at September 30, 2020 | | | | | 804,033 | | | | | $ | 0.95 | | | | | $ | 1,689,927 | | | | | | 5.99 | | |
Exercisable as of September 30, 2020 | | | | | 738,949 | | | | | $ | 0.90 | | | | | $ | 1,588,760 | | | | | | 5.83 | | |
| | | Years Ended September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Basic net loss per share attributable to common shareholders: | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net loss | | | | $ | (85,472) | | | | | $ | (109,115) | | |
Undistributed accumulated dividends on preferred stock | | | | | (15,331) | | | | | | (11,648) | | |
Net loss attributable to common shareholders | | | | $ | (100,803) | | | | | $ | (120,763) | | |
Denominator: | | | | | | | | | | | | | |
Weighted-average common stock outstanding | | | | | 11,992 | | | | | | 11,216 | | |
Basic and diluted net loss per share attributable to common shareholders | | | | $ | (8.41) | | | | | $ | (10.77) | | |
| | | As of September 30, | | |||||||||
| | | 2020 | | | 2019 | | ||||||
Stock options | | | | | 11,045,621 | | | | | | 10,362,799 | | |
Restricted stock awards | | | | | 45,364 | | | | | | 84,247 | | |
Common stock warrants | | | | | 360,516 | | | | | | 400,516 | | |
Convertible preferred stock | | | | | 50,741,759 | | | | | | 48,906,748 | | |
Series C convertible preferred stock warrants | | | | | 59,862 | | | | | | 59,862 | | |
2018 and 2020 convertible notes* | | | | | — | | | | | | — | | |
Years Ending September 30, | | | Minimum rental commitments | | |||
2021 | | | | $ | 3,163 | | |
2022 | | | | | 3,093 | | |
2023 | | | | | 2,924 | | |
2024 | | | | | 3,011 | | |
2025 | | | | | 3,099 | | |
Thereafter | | | | | 1,042 | | |
Total | | | | $ | 16,332 | | |
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| Annex A | | | Supporting Sponsor Shareholders | |
| Annex B | | | Key Company Shareholders | |
| Annex C | | | Specified Company Shareholders | |
| Annex D | | | PIPE Investors | |
| Annex 1 | | | Seventh Amended and Restated Company Certificate of Incorporation | |
| Exhibit A | | | Form of Sponsor Support Agreement | |
| Exhibit B | | | Form of Sponsor Lock-Up Agreement | |
| Exhibit C | | | Form of Company Support Agreement | |
| Exhibit D | | | Form of Company Lock-Up Agreement | |
| Exhibit E | | | Form of PIPE Investor Subscription Agreement | |
| Exhibit F | | | Form of Shareholders’ Agreement | |
| Exhibit G | | | Form of Amended and Restated Registration Rights Agreement | |
| Exhibit H | | | Form of Sponsor Warrant Forfeiture Agreement | |
| Exhibit I | | | Form of Pioneer Certificate of Incorporation | |
| Exhibit J | | | Form of Pioneer Bylaws | |
| Exhibit K | | | Form of Certificate of Incorporation of Surviving Corporation | |
| Exhibit L | | | Form of Bylaws of Surviving Corporation | |
| Exhibit M | | | Form of Pioneer Incentive Equity Plan | |
| Exhibit N | | | Loyalty Program Framework | |
| | | | www.verify.gov.ky File#: 367259 | | | Filed: 11-Jan-2021 11:26 EST Auth Code: D68070832572 | |
| | | | | | Filed: 11-Jan-2021 11:26 EST Auth Code: C38341518427 | |
| “Affiliate” | | | in respect of a person, means any other person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such person, and (a) in the case of a natural person, shall include, without limitation, such person’s spouse, parents, children, siblings, mother-in-law and father-in-law and brothers and sisters-in-law, whether by blood, marriage or adoption or anyone residing in such person’s home, a trust for the benefit of any of the foregoing, a company, partnership or any natural person or entity wholly or jointly owned by any of the foregoing and (b) in the case of an entity, shall include a partnership, a corporation or any natural person or entity which directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such entity. | |
| “Applicable Law” | | | means, with respect to any person, all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates, judgments, decisions, decrees or orders of any governmental authority applicable to such person. | |
| “Articles” | | | means these amended and restated articles of association of the Company. | |
| “Audit Committee” | | | means the audit committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Auditor” | | | means the person for the time being performing the duties of auditor of the Company (if any). | |
| “Business Combination” | | | means a merger, share exchange, asset acquisition, share purchase, reorganisation or similar business combination involving the Company, with one or more businesses or entities (the “target business”), which Business Combination: (a) as long as the securities of the Company are listed on the Nasdaq Capital Market, must occur with one or more target businesses that together have an aggregate fair market value of at least 80 per cent of the assets held in the Trust Account (excluding the deferred | |
| | | | underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the signing of the definitive agreement to enter into such Business Combination; and (b) must not be solely effectuated with another blank cheque company or a similar company with nominal operations. | |
| “business day” | | | means any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorised or obligated by law to close in New York City. | |
| “Clearing House” | | | means a clearing house recognised by the laws of the jurisdiction in which the Shares (or depositary receipts therefor) are listed or quoted on a stock exchange or interdealer quotation system in such jurisdiction. | |
| “Class A Share” | | | means a Class A ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Class B Share” | | | means a Class B ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Company” | | | means the above named company. | |
| “Company’s Website” | | | means the website of the Company and/or its web-address or domain name (if any). | |
| “Compensation Committee” | | | means the compensation committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Designated Stock Exchange” | | | means any United States national securities exchange on which the securities of the Company are listed for trading, including the Nasdaq Capital Market. | |
| “Directors” | | | means the directors for the time being of the Company. | |
| “Dividend” | | | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. | |
| “Electronic Communication” | | | means a communication sent by electronic means, including electronic posting to the Company’s Website, transmission to any number, address or internet website (including the website of the Securities and Exchange Commission) or other electronic delivery methods as otherwise decided and approved by the Directors. | |
| “Electronic Record” | | | has the same meaning as in the Electronic Transactions Act. | |
| “Electronic Transactions Act” | | | means the Electronic Transactions Act (2003 Revision) of the Cayman Islands. | |
| “Equity-linked Securities” | | | means any debt or equity securities that are convertible, exercisable or exchangeable for Class A Shares issued in a financing transaction in connection with a Business Combination, including but not limited to a private placement of equity or debt. | |
| “Exchange Act” | | | means the United States Securities Exchange Act of 1934, as amended, or any similar U.S. federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. | |
| “Forward Purchase Agreement” | | | means an agreement that provides for the sale of equity securities in a private placement that will close substantially concurrently with the closing of a Business Combination. | |
| “Forward Purchase Share” | | | means a Class A Share to be issued pursuant to a Forward Purchase Agreement. | |
| “Forward Purchase Warrant” | | | means a warrant to purchase a Class A Share to be issued pursuant to a Forward Purchase Agreement. | |
| “Founders” | | | means all Members immediately prior to the consummation of the IPO. | |
| “Independent Director” | | | has the same meaning as in the rules and regulations of the Designated Stock Exchange or in Rule 10A-3 under the Exchange Act, as the case may be. | |
| “IPO” | | | means the Company’s initial public offering of securities. | |
| “Member” | | | has the same meaning as in the Statute. | |
| “Memorandum” | | | means the amended and restated memorandum of association of the Company. | |
| “Nominating Committee” | | | means the nominating committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Officer” | | | means a person appointed to hold an office in the Company. | |
| “Ordinary Resolution” | | | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. | |
| “Ordinary Share” | | | means an ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Over-Allotment Option” | | | means the option of the Underwriters to purchase up to an additional 15 per cent of the firm units (as described in the Articles) issued in the IPO at a price equal to US$10 per unit, less underwriting discounts and commissions. | |
| “Preference Share” | | | means a preference share of a par value of US$0.0001 in the share capital of the Company. | |
| “Public Share” | | | means a Class A Share issued as part of the units (as described in the Articles) issued in the IPO. | |
| “Redemption Notice” | | | means a notice in a form approved by the Company by which a holder of Public Shares is entitled to require the Company to redeem its Public Shares, subject to any conditions contained therein. | |
| “Register of Members” | | | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. | |
| “Registered Office” | | | means the registered office for the time being of the Company. | |
| “Representative” | | | means a representative of the Underwriters. | |
| “Seal” | | | means the common seal of the Company and includes every duplicate seal. | |
| “Securities and Exchange Commission” | | | means the United States Securities and Exchange Commission. | |
| “Share” | | | means a Class A Share, a Class B Share, or a Preference Share and includes a fraction of a share in the Company. | |
| “Special Resolution” | | | subject to Article 29.4, has the same meaning as in the Statute, and includes a unanimous written resolution. | |
| “Sponsor” | | | means Pioneer Merger Sponsor LLC, a Cayman Islands limited liability company, and its successors or assigns. | |
| “Statute” | | | means the Companies Act (2020 Revision) of the Cayman Islands. | |
| “Tax Filing Authorised Person” | | | means such person as any Director shall designate from time to time, acting severally. | |
| “Treasury Share” | | | means a Share held in the name of the Company as a treasury share in accordance with the Statute. | |
| “Trust Account” | | | means the trust account established by the Company upon the consummation of its IPO and into which a certain amount of the net proceeds of the IPO, together with a certain amount of the proceeds of a private placement of warrants simultaneously with the closing date of the IPO, will be deposited. | |
| “Underwriter” | | | means an underwriter of the IPO from time to time and any successor underwriter. | |
| By: | | | | | |||
| | | | Name: | | | | |
| | | | Title: | | | | |
| | | | PIONEER MERGER CORP. | |
| | | | By: Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | |
| | | | By: Name: Title: | |
| | | | SUPPORTING SPONSOR SHAREHOLDER: | |
| | | | ALPHA WAVE VENTURES, LP | |
| | | | By: Falcon Special Opportunities General Partner, LP Its: General Partner | |
| | | | By: Falcon Edge (Cayman) GP, Ltd Its: General Partner | |
| | | | By: Name: Scott Carpenter Title: Director | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: 4,450,000 Pioneer Class B Shares: | |
| | | | Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Scott Carpenter Facsimile: E-mail: scarpenter@falconedgecap.com | |
| | | | ACORNS GROW INCORPORATED | |
| | | | By: Name: Noah Kerner Title: Chief Executive Officer | |
| | | | PIONEER MERGER CORP. | |
| | | | By: Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | |
| | | | By: Name: Title: | |
| | | | SUPPORTING SPONSOR SHAREHOLDER: | |
| | | | By: Name: Mitchell Caplan | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 40,000 | |
| | | | Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Mitchell Caplan Facsimile: E-mail: | |
| | | | ACORNS GROW INCORPORATED | |
| | | | By: Name: Noah Kerner Title: Chief Executive Officer | |
| | | | PIONEER MERGER CORP. | |
| | | | By: Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | |
| | | | By: Name: Title: | |
| | | | SUPPORTING SPONSOR SHAREHOLDER: | |
| | | | By: Name: Mitchell Caplan | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: N/A Pioneer Class B Shares: 40,000 | |
| | | | Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Mitchell Caplan | |
| | | | Facsimile: N/A E-mail: mhcaplan@gmail.com | |
| | | | PIONEER MERGER CORP. | |
| | | | By: Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | |
| | | | By: Name: Title: | |
| | | | SUPPORTING SPONSOR SHAREHOLDER: | |
| | | | By: Name: Oscar Salazar | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 40,000 | |
| | | | Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Oscar Salazar Facsimile: E-mail: | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Noah Kerner | |
| | | | | | | Title: | | | Chief Executive Officer | |
| | | | PIONEER MERGER CORP. | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Scott Carpenter | |
| | | | | | | Title: | | | Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | | |
| | | | | | | Title: | | | ||
| | | | SUPPORTING SPONSOR SHAREHOLDER: | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Oscar Salazar | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 40,000 Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Oscar Salazar Facsimile: E-mail: oscar@ogonllc.com | |
| | | | PIONEER MERGER CORP. | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Scott Carpenter | |
| | | | | | | Title: | | | Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
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| | | | SUPPORTING SPONSOR SHAREHOLDER: | | ||||||
| | | | PIONEER MERGER SPONSOR LLC | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Richard Gerson | |
| | | | | | | Title: | | | Manager | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 9,942,500 Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Richard Gerson Facsimile: | | ||||||
| | | | E-mail: | | | rgerson@falconedgecap.com notices@falconedgecap.com | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Noah Kerner | |
| | | | | | | Title: | | | Chief Executive Officer | |
| | | | PIONEER MERGER CORP. | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Scott Carpenter | |
| | | | | | | Title: | | | Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | ||
| | | | | | | Title: | | | ||
| | | | SUPPORTING SPONSOR SHAREHOLDER: | | ||||||
| | | | PIONEER MERGER SPONSOR LLC | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Richard Gerson | |
| | | | | | | Title: | | | Manager | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 9,942,500 Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Richard Gerson Facsimile: | | ||||||
| | | | E-mail: | | | rgerson@falconedgecap.com notices@falconedgecap.com | | |
| | | | PIONEER MERGER CORP. | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Scott Carpenter | |
| | | | | | | Title: | | | Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
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| | | | SUPPORTING SPONSOR SHAREHOLDER: | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Todd Davis | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 40,000 Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Todd Davis Facsimile: | | ||||||
| | | | E-mail: | | | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Noah Kerner | |
| | | | | | | Title: | | | Chief Executive Officer | |
| | | | PIONEER MERGER CORP. | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Scott Carpenter | |
| | | | | | | Title: | | | Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | ||
| | | | | | | Title: | | | ||
| | | | SUPPORTING SPONSOR SHAREHOLDER: | | ||||||
| | | | By: | | | | | |||
| | | | | | | Name: | | | Todd Davis | |
| | | | Record and/or Beneficial Ownership: Pioneer Class A Shares: Pioneer Class B Shares: 40,000 Address for Notice: 660 Madison Avenue, 19th Floor New York, New York 10065 Attention: Todd Davis Facsimile: 6026842112 E-mail: LIFELOCKCEO@gmail.com | |
| | | | PIONEER MERGER CORP. | | |||
| | | | By: | | | Name: Title: | |
| | | | ACORNS GROW INCORPORATED | | |||
| | | | By: | | | Name: Title: | |
| | | | SUPPORTING COMPANY SHAREHOLDER: | | |||
| | | | By: | | | Name: Title: | |
| | | | Series A Preferred Stock: Series B Preferred Stock: Series C Preferred Stock: Series D Preferred Stock: Series E Preferred Stock: Common Stock: | |
| | | | Address for Notice: | |
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| | | | Attention: Facsimile: E-mail: | |
| | | | PIONEER MERGER SPONSOR, LLC | | |||
| | | | By: | | | Name: Richard Gerson Title: Manager | |
| | | | PIONEER MERGER CORP. | | |||
| | | | By: | | | Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | PIONEER MERGER SPONSOR, LLC | | |||
| | | | By: | | | Name: Richard Gerson Title: Manager | |
| | | | PIONEER MERGER CORP.: | | |||
| | | | By: | | | Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | |||
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| | | | By: | | | Name: Noah Kerner Title: CEO | |
| Name of Investor: | | | State/Country of Formation or Domicile: | |
| By: | | | | |
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| Title: | | | | |
| Name in which Shares are to be registered (if different): | | | Date: May 26, 2021 | |
| Investor’s EIN: | | | | |
| Business Address-Street: | | | Mailing Address-Street (if different): | |
| City, State, Zip: | | | City, State, Zip: | |
| Attn: | | | Attn: | |
| Telephone No.: | | | Telephone No.: | |
| Facsimile No.: | | | Facsimile No.: | |
| Number of Shares subscribed for: | | | | |
| Aggregate Subscription Amount: $ | | | Price Per Share: $10.00 | |
| | | | PIONEER MERGER SPONSOR, LLC | | |||
| | | | By: | | | Name: Richard Gerson Title: Manager | |
| | | | PIONEER MERGER CORP. | | |||
| | | | By: | | | Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | PIONEER MERGER SPONSOR, LLC | | |||
| | | | By: | | | Name: Richard Gerson Title: Manager | |
| | | | PIONEER MERGER CORP.: | | |||
| | | | By: | | | Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | |||
| | | | | ||||
| | | | By: | | | Name: Noah Kerner Title: CEO | |
| Name of Investor: | | | State/Country of Formation or Domicile: | |
| By: | | | | |
| Name: | | | | |
| Title: | | | | |
| Name in which Shares are to be registered (if different): | | | Date: May 26, 2021 | |
| Investor’s EIN: | | | | |
| Business Address-Street: | | | Mailing Address-Street (if different): | |
| City, State, Zip: | | | City, State, Zip: | |
| Attn: | | | Attn: | |
| Telephone No.: | | | Telephone No.: | |
| Facsimile No.: | | | Facsimile No.: | |
| Number of Shares subscribed for: | | | | |
| Aggregate Subscription Amount: $ | | | Price Per Share: $10.00 | |
| | | | PIONEER MERGER SPONSOR, LLC | | |||
| | | | By: | | | Name: Richard Gerson Title: Manager | |
| | | | PIONEER MERGER CORP. | | |||
| | | | By: | | | Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | PIONEER MERGER SPONSOR, LLC | | |||
| | | | By: | | | Name: Richard Gerson Title: Manager | |
| | | | PIONEER MERGER CORP.: | | |||
| | | | By: | | | Name: Scott Carpenter Title: Chief Operating Officer | |
| | | | ACORNS GROW INCORPORATED | | |||
| | | | | ||||
| | | | By: | | | Name: Noah Kerner Title: CEO | |
| Name of Investor: | | | State/Country of Formation or Domicile: | |
| By: | | | | |
| Name: | | | | |
| Title: | | | | |
| Name in which Shares are to be registered (if different): | | | Date: May 26, 2021 | |
| Investor’s EIN: | | | | |
| Business Address-Street: | | | Mailing Address-Street (if different): | |
| City, State, Zip: | | | City, State, Zip: | |
| Attn: | | | Attn: | |
| Telephone No.: | | | Telephone No.: | |
| Facsimile No.: | | | Facsimile No.: | |
| Number of Shares subscribed for: | | | | |
| Aggregate Subscription Amount: $ | | | Price Per Share: $10.00 | |
Address: | |
Reason for Terminating Continuous Service | | | Option Termination Date | |
(I) By the Company for Cause, or what would have been Cause if the Company had known all of the relevant facts, or due to Participant’s material breach of his or her unexpired employment agreement or independent contractor agreement with the Company. | | | All Options, whether or not vested, shall immediately expire effective on the date of termination of the Participant’s Continuous Service, or when Cause first existed if earlier. | |
(II) Disability or death of the Participant during Continuous Service (in either case unless Reason I applies). | | | All unvested Options shall immediately expire effective as of the date of termination of the Participant’s Continuous Service, and all vested and unexercised Options shall expire twelve (12) months after such termination. | |
(III) Any other reason. | | | All unvested Options shall immediately expire effective on the date of termination of the Participant’s Continuous Service. All vested and unexercised Options, to the extent unexercised, shall expire effective ninety (90)days after the date of termination of the Participant’s Continuous Service. | |
| Name | | | Position | | | Date | |
| Jonathan Christodoro | | | Chairman | | | | |
| Oscar Salazar | | | Director | | | | |
| Mitchell Caplan | | | Director | | | | |
| Todd Davis | | | Director | | | | |
| /s/ Ryan Khoury Ryan Khoury | | | Chief Executive Officer (Principal Executive Officer) | | | | |
| Matthew Corey | | | Chief Financial Officer (Principal Financial and Accounting Officer) | | | | |
| *By: /s/ Ryan Khoury Name: Ryan Khoury Title: Attorney-in-fact | | | |