Sezzle (SEZL) 10-K 28 Feb 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Feb. 15, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-56267
Entity Registrant Name	SEZZLE INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-0971660
Entity Address, Address Line One	251 N 1st Avenue
Entity Address, Address Line Two	Ste. 200
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55401
Country Region	+1
City Area Code	651
Local Phone Number	504 5402
Title of 12(g) Security	Common Stock, par value $0.00001 per share
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Entity Shell Company	false
Entity Public Float			$ 16,457,265
Entity Common Stock, Shares Outstanding		208,267,933
Documents Incorporated by Reference	None.
Entity Central Index Key	0001662991
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	23
Auditor Name	Baker Tilly US, LLP
Auditor Location	Minneapolis, Minnesota

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Current Assets
Cash and cash equivalents	$ 68,279,539	$ 76,983,728
Restricted cash, current	1,223,119	1,886,440
Notes receivable, net	93,358,404	133,986,583
Other receivables, net	2,532,710	5,084,099
Prepaid expenses and other current assets	4,737,688	3,350,053
Total current assets	170,131,460	221,290,903
Non-Current Assets
Internally developed intangible assets, net	1,322,836	910,584
Property and equipment, net	281,605	662,472
Operating right-of-use assets	86,715	285,865
Restricted cash, non-current	20,000	20,000
Other assets	733,922	233,752
Total Assets	172,576,538	223,403,576
Current Liabilities
Merchant accounts payable	83,020,739	96,516,668
Operating lease liabilities	79,312	171,959
Accrued liabilities	10,448,872	7,996,772
Other payables	4,129,371	2,874,046
Deferred revenue	1,516,228	0
Total current liabilities	99,194,522	107,559,445
Long Term Liabilities
Long term debt	250,000	250,000
Operating lease liabilities	0	90,962
Line of credit, net of unamortized debt issuance costs of $1,222,525 and $1,088,869, respectively	63,777,475	77,711,131
Warrant liabilities	511,295	0
Total Liabilities	163,733,292	185,611,538
Commitments and Contingencies
Stockholders' Equity
Common stock, $0.00001 par value; 750,000,000 shares authorized; 209,270,070 and 204,891,057 shares issued, respectively; 208,181,834 and 204,230,939 shares outstanding, respectively	2,083	2,044
Additional paid-in capital	179,054,368	168,338,673
Stock subscriptions: 0 and 20,729 shares subscribed, respectively	0	(18,545)
Treasury stock, at cost: 1,088,236 and 660,118 shares, respectively	(4,072,752)	(3,691,322)
Accumulated other comprehensive (loss) income	(643,974)	563,911
Accumulated deficit	(165,496,479)	(127,402,723)
Total Stockholders' Equity	8,843,246	37,792,038
Total Liabilities and Stockholders' Equity	$ 172,576,538	$ 223,403,576
Common stock authorized (in shares)	750,000,000	750,000,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Unamortized debt issuance costs	$ 1,222,525	$ 1,088,869
Common stock par value (in usd per share)	$ 0.00001	$ 0.00001
Common stock authorized (in shares)	750,000,000	750,000,000
Common stock issued (in shares)	209,270,070	204,891,057
Common stock outstanding (in shares)	208,181,834	204,230,939
Stock subscriptions (in shares)	0	20,729
Treasury stock at cost (in shares)	1,088,236	660,118

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Loss - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues [Abstract]
Total income	$ 125,570,441	$ 114,816,635
Operating Expenses
Personnel	51,217,083	56,831,368
Transaction expense	40,776,825	43,476,143
Third-party technology and data	8,190,022	5,549,844
Marketing, advertising, and tradeshows	18,972,025	9,251,854
General and administrative	16,411,912	15,768,583
Provision for uncollectible accounts	29,437,179	52,621,682
Reimbursement of merger-related costs	(11,000,000)	0
Total operating expenses	154,005,046	183,499,474
Operating Loss	(28,434,605)	(68,682,839)
Other Income (Expense)
Net interest expense	(8,600,716)	(5,269,284)
Other expense, net	(225,606)	(65,145)
Loss on extinguishment of line of credit	(813,806)	(1,092,679)
Fair value adjustment on warrants	50,424	0
Loss before taxes	(38,024,309)	(75,109,947)
Income tax expense	69,447	58,416
Net Loss	(38,093,756)	(75,168,363)
Other Comprehensive (Loss) Income
Foreign currency translation adjustment	(1,207,885)	69,406
Total Comprehensive Loss	$ (39,301,641)	$ (75,098,957)
Net loss per share:
Basic loss per common share (in usd per share)	$ (0.18)	$ (0.38)
Diluted loss per common share (in usd per share)	$ (0.18)	$ (0.38)
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Basic weighted average shares outstanding (shares)	206,856,959	200,344,028
Diluted weighted average shares outstanding (shares)	206,856,959	200,344,028

Consolidated Statements of Stoc

Consolidated Statements of Stockholders’ Equity - USD ($)	Total	Common Stock	Additional Paid-in Capital	Stock Subscriptions	Treasury Stock, At Cost	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2020		196,926,674
Beginning balance at Dec. 31, 2020	$ 59,958,417	$ 1,970	$ 112,640,974	$ (69,440)	$ (875,232)	$ 494,505	$ (52,234,360)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity based compensation	$ 9,013,029		9,013,029
Stock option exercises (in shares)	1,683,397	1,486,341
Stock option exercises	$ 765,786	$ 15	765,771
Restricted stock issuances and vesting of awards (in shares)		1,569,681
Restricted stock issuances and vesting of awards	5,148,725	$ 16	5,148,709
Issuance of restricted stock units for settlement of accrued expenses	1,996,779
Conversion of liability-classified incentive awards to stockholders' equity	8,580,123
Stock subscriptions receivable related to stock option exercises (in shares)		197,056
Stock subscriptions receivable related to stock option exercises	0	$ 2	196,102	(196,104)
Stock subscriptions collected related to stock option exercises	246,999			246,999
Repurchase of common stock (in shares)		(508,083)
Repurchase of common stock	(2,816,095)	$ (5)			(2,816,090)
Proceeds from issuance of common stock, net of issuance costs (in shares)		4,559,270
Proceeds from issuance of common stock, net of issuance costs	29,997,232	$ 46	29,997,186
Foreign currency translation adjustment	69,406					69,406
Net loss	$ (75,168,363)						(75,168,363)
Ending balance (in shares) at Dec. 31, 2021	204,230,939	204,230,939
Ending balance at Dec. 31, 2021	$ 37,792,038	$ 2,044	168,338,673	(18,545)	(3,691,322)	563,911	(127,402,723)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Equity based compensation	$ 7,674,265		7,674,265
Stock option exercises (in shares)	3,029,480	1,685,730
Stock option exercises	$ 100,370	$ 17	100,353
Restricted stock issuances and vesting of awards (in shares)		1,349,533
Restricted stock issuances and vesting of awards	2,635,270	$ 13	2,635,257
Conversion of liability-classified incentive awards to stockholders' equity	8,580,123
Stock subscriptions receivable related to stock option exercises (in shares)		1,343,750
Stock subscriptions receivable related to stock option exercises	0	$ 13	305,820	(305,833)
Stock subscriptions collected related to stock option exercises	324,378		0	324,378
Repurchase of common stock (in shares)		(428,118)
Repurchase of common stock	(381,434)	$ (4)			(381,430)
Foreign currency translation adjustment	(1,207,885)			0		(1,207,885)
Net loss	$ (38,093,756)				0		(38,093,756)
Ending balance (in shares) at Dec. 31, 2022	208,181,834	208,181,834
Ending balance at Dec. 31, 2022	$ 8,843,246	$ 2,083	$ 179,054,368	$ 0	$ (4,072,752)	$ (643,974)	$ (165,496,479)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Activities:
Net loss	$ (38,093,756)	$ (75,168,363)
Adjustments to reconcile net loss to net cash provided from (used for) operating activities:
Depreciation and amortization	847,126	749,111
Provision for uncollectible accounts	29,437,179	52,621,682
Provision for other uncollectible receivables	9,257,284	7,349,852
Equity based compensation and restricted stock vested	10,309,535	14,161,754
Amortization of debt issuance costs	983,745	689,930
Impairment losses on long-lived assets	39,512	5,475
Fair value adjustment on warrants	(50,424)	0
Loss on extinguishment of line of credit	813,806	1,092,679
Loss on sale of fixed assets	79,683	0
Changes in operating assets and liabilities:
Notes receivable	10,590,769	(105,950,424)
Other receivables	(6,710,739)	(11,031,826)
Prepaid expenses and other assets	(1,353,026)	(1,855,206)
Merchant accounts payable	(12,928,944)	35,696,079
Other payables	1,281,500	2,111,082
Accrued liabilities	2,476,822	7,416,249
Deferred revenue	1,516,228	0
Operating leases	15,548	(20,124)
Net Cash Provided from (Used for) Operating Activities	8,511,848	(72,132,050)
Investing Activities:
Purchase of property and equipment	(52,236)	(686,032)
Internally developed intangible asset additions	(955,841)	(733,995)
Net Cash Used for Investing Activities	(1,008,077)	(1,420,027)
Financing Activities:
Payments on long term debt	0	(1,220,332)
Proceeds from line of credit	71,155,556	174,666,667
Payments to line of credit	(84,955,556)	(135,866,667)
Payments of debt issuance costs	(1,330,901)	(1,697,705)
Payment of debt extinguishment costs	(600,307)	(1,000,000)
Proceeds from stock option exercises	100,370	765,786
Stock subscriptions collected related to stock option exercises	324,378	246,999
Repurchase of common stock	(381,434)	(2,652,014)
Proceeds from issuance of common stock	0	30,000,000
Costs incurred from issuance of common stock	0	(2,768)
Net Cash (Used for) Provided from Financing Activities	(15,687,894)	63,239,966
Effect of exchange rate changes on cash	(1,183,387)	98,376
Net decrease in cash, cash equivalents, and restricted cash	(8,184,123)	(10,312,111)
Cash, cash equivalents, and restricted cash, beginning of year	78,890,168	89,103,903
Cash, cash equivalents, and restricted cash, end of year	69,522,658	78,890,168
Noncash investing and financing activities:
Lease liabilities arising from obtaining right-of-use assets	8,005	328,341
Issuance of restricted stock units for settlement of accrued expenses	0	1,996,779
Conversion of liability-classified incentive awards to stockholders' equity	0	8,580,123
Withholding of restricted stock units to cover employee tax withholding	0	164,081
Issuance of warrants	561,719	0
Supplementary disclosures:
Interest paid	7,790,430	4,819,604
Income taxes paid	$ 65,395	$ 56,017

Principal Business Activity and

Principal Business Activity and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Principal Business Activity and Significant Accounting Policies	Principal Business Activity and Significant Accounting Policies Principal Business Activity Sezzle Inc. (“Sezzle”, the “Company”, “we”, “us”, or “our”) is a technology-enabled payments company based in the United States with operations in the United States, Canada, India, Brazil, and certain countries in Europe. We are a Delaware Public Benefit Corporation formed on January 4, 2016. We offer our payment solution at online stores and a select number of brick-and-mortar retail locations, connecting consumers with merchants via a proprietary payments solution that instantly extends credit at the point-of-sale, allowing consumers to purchase and receive the items that they need now while paying over time in interest-free installments. Merchants turn to us to increase sales by tapping into our existing user base, increase conversion rates, increase spend per transaction, increase purchase frequency, and reduce return rates, all without bearing any credit risk. We are a high-growth, networked platform that benefits from a symbiotic and mutually beneficial relationship between merchants and consumers. Our core product allows consumers to make online purchases and split the payment for the purchase over four equal, interest-free payments over six weeks. The consumer makes the first payment at the time of checkout and makes the subsequent payments every two weeks thereafter. For our core direct integration solution, the purchase price, less merchant fees, is paid to merchants by us in advance of collecting the purchase price installments from the consumer. For our virtual card solution, the full purchase price is paid to merchants at the time of sale, and we separately invoice the merchant for merchant fees due to us. We are headquartered in Minneapolis, Minnesota. Basis of Presentation and Principles of Consolidation The consolidated financial statements are prepared and presented under accounting principles generally accepted in the United States of America (U.S. GAAP). All amounts are reported in U.S. dollars, unless otherwise noted. We consolidate the accounts of subsidiaries for which we have a controlling financial interest. The accompanying consolidated financial statements include all the accounts and activity of Sezzle Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Liquidity and Financial Condition Throughout the year ended December 31, 2022, we undertook various measures to address our liquidity and financial condition. On February 25, 2022 we amended our line of credit covenants which provided alternatives for certain financial covenant measurement thresholds. Additionally, throughout the year we tightened our underwriting strategies, resulting in a reduction in our overall provision for uncollectible accounts. On March 10, 2022 we undertook a workforce reduction that provided for a reduction in our personnel expense compared to the year ended December 31, 2021. Further, on October 14, 2022 we entered into a new line of credit agreement as disclosed in Note 8 of these consolidated financial statements. Our cost cutting measures during the year ended December 31, 2022 have resulted in lower operating expenses relative to the prior year, while also realizing higher year-over-year total income. Concentrations of Credit Risk Cash and Cash Equivalents Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and cash equivalents. We maintain our cash in depository accounts that, at times, may exceed limits established by the Federal Deposit Insurance Corporation (“FDIC”) and equivalent foreign institutions. As of the date of this report, we have not experienced losses on such accounts. Foreign Currency Risk We hold funds and settle payments that are denominated in currencies other than U.S. dollars. Changes in foreign currency exchange rates expose us to fluctuations on our consolidated balance sheets and statements of operations and comprehensive loss. Currency risk is managed through limits set on total foreign deposits on hand that we routinely monitor. Notes Receivable We are exposed to the risk of credit losses as a result of extending credit to consumers. Changes in economic conditions may result in higher credit losses. We have a policy for establishing credit lines for individual consumers that helps mitigate credit risk. The allowance for uncollectible accounts is adequate for covering any potential losses on outstanding notes receivable. Cash and Cash Equivalents We consider all money market funds and other highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We accept Automated Clearing House ("ACH"), Electronic Funds Transfer ("EFT"), debit card, and credit card payment methods from consumers as a method to settle our receivables, and these transactions are generally transmitted through third parties. The payments due from the third parties for debit card, credit card, ACH, and EFT transactions are generally settled within three days of initiation. We consider all bank, debit, and credit card transactions initiated before the end of the period to be cash and cash equivalents. Restricted Cash We are required to maintain cash balances in a bank account in accordance with certain lending agreements. The bank account is our property, but access to consumer payments is controlled by our line of credit providers. On a regular basis, cash received from consumers is deposited to the bank account and subsequently made available to us through periodic settlement reporting with our line of credit providers. Cash deposits to the bank account represent cash received from originated receivables, including consumer payments and affiliate partner payments. The minimum balance consists of accrued interest on the drawn credit facility, accrued interest on the unused portion of the credit facility, and accrued management fees charged by our line of credit providers. We are permitted to withdraw cash from the bank account provided we meet certain requirements of the line of credit. We are also required to maintain a minimum balance in a deposit account with a third-party service provider to fund merchants using our virtual card solution. These accounts are classified as current restricted cash on the consolidated balance sheets. We are required to maintain a cash balance held in a reserve account to cover ACH transactions. The cash balance within this reserve account is classified as non-current restricted cash on the consolidated balance sheets. Receivables and Credit Policy Notes receivable represent amounts from uncollateralized consumer receivables generated from the purchase of merchandise. The original terms of the notes for our core product are to be paid back in four equal installments every two weeks over a six-week period, with the first installment being paid at the time of purchase. We do not charge interest on the notes to consumers. Transaction income is recognized over the average life of the notes receivable using the effective interest rate method. These net deferred costs are recorded within notes receivable, net on the consolidated balance sheets. Notes receivable are recorded at net realizable value and are recorded as current assets. We evaluate the collectability of the balances based on historical performance, current economic conditions, and specific circumstances of individual notes, with an allowance for uncollectible accounts being provided as necessary. Other receivables represent the net realizable value of consumer account reactivation fees receivable, merchant accounts receivable, and merchant processing fees receivable. Consumer account reactivation fees receivable, less an allowance for uncollectible accounts, represent the amount of account reactivation fees we reasonably expect to receive from consumers. Receivables from merchants, less any allowances for uncollectible accounts, represent amounts merchants owe us relating to transactions placed by consumers on their sites that we reasonably expect to collect. All notes receivable from consumers, as well as related fees, outstanding greater than 90 days past due are charged off as uncollectible. It is our practice to continue collection efforts after the charge-off date. Refer to Note 3 and Note 4 for further information about receivable balances, allowances, and charge-off amounts. Debt Issuance Costs Costs incurred in connection with originating debt are capitalized and are classified in the consolidated balance sheets as a reduction of the financial statement line item for which those costs relate. Debt issuance costs are amortized over the life of the underlying debt obligation utilizing the straight-line method, which approximates the effective interest method. In the event of an extinguishment of debt, the remaining unamortized debt issuance costs related to the extinguished debt is immediately expensed. Amortization of debt issuance costs is included within net interest expense on the consolidated statements of operations and comprehensive loss. Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. We capitalize all property and equipment exceeding $1,000. Depreciation is provided using either the straight-line or double-declining balance method, based on the useful lives of the assets: Years Method Computers and computer equipment 3 Double-declining balance Office equipment 5 Double-declining balance Furniture and fixtures 7 Straight-line Maintenance and repairs are expensed as incurred and recorded within general and administrative on the consolidated statements of operations and comprehensive loss. Internally Developed Intangible Assets We capitalize costs incurred for web development and software developed for internal use. The costs capitalized primarily relate to direct labor costs for employees and contractors working directly on software development and implementation. Projects are eligible for capitalization once it is determined that the project is being designed or modified to meet internal business needs; the project is ready for its intended use; the total estimated costs to be capitalized exceed $1,000; and there are no plans to market, sell, or lease the project. Amortization is provided using the straight-line method, based on the useful lives of the intangible assets as follows: Years Method Internal use software 3 Straight-line Website development costs 3 Straight-line Amortization expense is recorded within general and administrative on the consolidated statements of operations and comprehensive loss. See Note 6 for further information. Research and Development Costs Research expenditures that relate to the development of new processes, including internally developed software, are expensed as incurred. Such costs were approximately $2,012,000 and $1,462,000 for the years ended December 31, 2022 and 2021, respectively. Research expenditures are recorded within personnel on the consolidated statements of operations and comprehensive loss. Impairment of Long-Lived Assets We review the carrying value of property, equipment, and internally developed intangible assets for impairment whenever events and circumstances indicate that the assets’ carrying value may not be recoverable from the future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends, and prospects; the manner in which the asset is used; and the effects of obsolescence, demand, competition, and other economic factors. Impairments for the years ended December 31, 2022 and 2021 were not material. Impairment costs are recorded in general and administrative within operating expenses in the consolidated statements of operations and comprehensive loss. As of December 31, 2022 and 2021, we have not renewed or extended the initial determined life for any of our recognized internally developed intangible assets. Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the basis of receivables, property and equipment, equity based compensation, and accrued liabilities for financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Given our history of losses, a full valuation allowance is recorded against our deferred tax assets. We evaluate our tax positions that have been taken or are expected to be taken on income tax returns to determine if an accrual is necessary for uncertain tax positions. To date we have not recorded any liabilities for uncertain tax positions. Refer to Note 10 for further information. Advertising Costs Advertising costs are expensed as incurred and consist of traditional marketing, digital marketing, sponsorships, promotional product expenses, and contractual obligations to co-market the Sezzle brand. Such costs were $18,476,899 and $8,569,276 for the years ended December 31, 2022 and 2021, respectively, and were recorded within general and administrative on the consolidated statements of comprehensive loss. Equity Based Compensation We maintain stock compensation plans that provide for equity based awards in the form of incentive and non-statutory stock options and restricted stock to our employees, directors, and advisors. Equity based compensation expense reflects the fair value of awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of stock options without a market condition on the measurement date using the Black-Scholes valuation model. The fair value of stock options and restricted stock units with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation model. The Black-Scholes and Monte Carlo Simulation models incorporate assumptions about stock price volatility, expected life of the awards, risk-free interest rate, and dividend yield. For valuing our stock option grants, significant judgment is required for determining the expected volatility of our common stock and is based on the historical volatility of both our common stock and our defined peer group. The fair value of restricted stock awards and restricted stock units is based on the fair market value of our common stock on the date of grant. The expense associated with equity based compensation is recognized over the requisite service period using the straight-line method. We issue new shares of common stock upon the exercise of stock options and vesting of restricted stock units. Refer to Note 13 and Note 14 for further information around our equity based compensation plans. Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Our estimates and judgments are based on historical experience and various other assumptions that we believe are reasonable under the circumstances. The amount of assets and liabilities reported on our consolidated balance sheets and the amounts of income and expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, determining the allowance for uncollectible accounts recorded against outstanding receivables, the valuation of equity based compensation, and income taxes. Fair Value Fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 — Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and • Level 3 — Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk. We measure the value of our money market securities at each reporting date. The fair value of our money market securities, totaling $333,158 and $6,408,389 as of December 31, 2022 and 2021, respectively, are based on Level 1 inputs and are included within cash and cash equivalents on the consolidated balance sheets. We also measure the value of our warrant liabilities at each reporting date. The fair value of our warrant liabilities are determined using the Black-Scholes valuation model, which includes our common stock price on the ASX, a Level 1 input. The fair value of the warrant liabilities total $511,295 as of December 31, 2022. Segments We conduct our operations through a single operating segment and, therefore, one reportable segment. There are no significant concentrations by state or geographical location, nor are there any significant individual customer concentrations by balance. Foreign Currency We work with international merchants, creating exposure to gains and losses from foreign currency exchanges. Our income and cash can be affected by movements in the Canadian Dollar, Euro, Indian Rupee, and Brazilian Real. Losses from foreign exchange rate fluctuations that affected our net loss totaled ($118,831) and ($69,228) for the years ended December 31, 2022 and 2021, respectively. Foreign currency exchange gains and losses are recorded within other expense, net, on the consolidated statements of operations and comprehensive loss. The financial statements of our non-U.S. subsidiaries are translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. Under ASC 830, if our assets and liabilities are recorded in certain non-U.S. functional currencies other than the U.S. dollar, they are translated at current rates of exchange. Revenue and expense items are translated at average monthly exchange rates. The resulting translation adjustments are recorded directly into accumulated other comprehensive (loss) income. Foreign currency translation adjustment income (loss) totaled ($1,207,885) and $69,406 for the years ended December 31, 2022 and 2021, respectively. Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation format. These reclassifications had no effect on our net loss or total comprehensive loss. Recent Accounting Pronouncements Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU No. 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity This ASU simplifies the accounting for convertible debt by eliminating the beneficial conversion feature and cash conversion feature models from the guidance and instead requires entities to record convertible debt at amortized cost. January 1, 2022 The adoption of this ASU did not have a material effect on our consolidated financial statements or on our disclosures. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU replaces the incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The standard also requires expanded disclosures related to credit losses and credit quality indicators. January 1, 2023 We do not expect the adoption of this ASU to have a material impact on our allowance for credit losses under the new standard. We will disclose credit quality indicators, gross writeoffs, and other required disclosures in our first quarter 2023 consolidated financial statements. ASU No. 2022-02 , Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures This ASU requires an entity to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. January 1, 2023 The impact of adopting this amendment is included within the impact of adoption of ASU No. 2016-13.

Total Income

Total Income	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Total Income	Total Income Total income was $125,570,441 and $114,816,635 for the years ended December 31, 2022 and 2021, respectively. Total income in the fourth quarter has historically been strongest for us, in line with consumer spending habits during the holiday shopping season. In 2022, we saw a deviation from this historical trend due to our focus on profitability over top-line growth. Our total income is classified into two categories: transaction income and income from other services. Transaction Income Transaction income is comprised of all income earned from merchants, consumers, and other third-parties that relate to placing and processing orders on the Sezzle Platform. This primarily includes merchant processing fees, virtual card interchange income, and convenience fee income. We earn our income primarily from fees paid by merchants in exchange for our payment processing services. These merchant processing fees are applied to the underlying sales to consumers passing through our platform and are predominantly based on a percentage of the consumer order value plus a fixed fee per transaction. We also earn income through interchange fees through our virtual card solution. Virtual card interchange income is recognized at the time a virtual card transaction is processed. Additionally, we charge a convenience fee to consumers that choose to pay their installments using a debit or credit card (excluding the first installment). We do not charge a fee for using ACH on subsequent installments. We recognize convenience fee income at the time the transaction is processed. Transaction income is reduced by direct loan origination fees. Such costs are comprised of costs paid to third-parties to obtain data for underwriting consumers which result in a successful transaction. Such costs which result in a declined order are recorded within third-party technology and data on the consolidated statements of operations and comprehensive loss. Income from Other Services Income from other services includes all other incomes earned from merchants, consumers, and other third-parties not included in transaction income. This primarily includes account reactivation fees, reschedule fees, and Sezzle Premium subscription revenue. We earn income from consumers in the form of account reactivation fees. These fees are assessed to consumers who fail to make a timely payment. Account reactivation fees are applied to principal installments that are delinquent for more than 48 hours (or longer depending on the regulations within a specific state jurisdiction) after the scheduled installment payment date. Account reactivation fees are recognized at the time the fee is charged to the consumer to the extent they are reasonably collectible by us. We also earn income from consumers in the form of reschedule fees. Consumers are also allowed to reschedule their initial installment one time without incurring a reschedule fee and the principal of a rescheduled payment is not considered to be delinquent. If consumers reschedule a payment more than once in the same order cycle they are subject to a reschedule fee. Additionally, we offer our consumers the ability to subscribe to Sezzle Premium which, along with other benefits, allows consumers to shop at select large, non-integrated “premium merchants” for a monthly or annual fee. Sezzle Premium subscription fees are recognized straight-line over the subscription period. We also earn income from other services in the form of merchant gateway fees. Merchant gateway fees are charged to certain low-volume merchants for access to our Sezzle Platform, consumer base, and merchant store directory. Such fees are recognized at the time the fee is charged to merchants to the extent they are reasonably collectible by us. Disaggregation of Total Income Our total income by category for the years ended December 31, 2022 and 2021 is as follows: 2022 2021 Transaction income $ 102,599,194 $ 93,498,598 Income from other services 22,971,247 21,318,037 Total income $ 125,570,441 $ 114,816,635 Within total income, $11,959,044 and $206,860 do not fall under the scope of the Accounting Standards Codification (“ASC”) Topic 310, Receivables, for the years ended December 31, 2022 and 2021, respectively. Such income relates to revenue from contracts with customers and is within the scope of ASC 606. Total income that falls under the scope of ASC Topic 310 (excluding account reactivation fees) is initially recorded as a reduction to notes receivable, net, within the consolidated balance sheets. The income is then recognized over the average duration of the note using the effective interest rate method. Total income to be recognized over the duration of existing notes receivable outstanding was $4,068,332 and $5,240,919 as of December 31, 2022 and 2021, respectively. Total income that falls under the scope of ASC Topic 606, Revenue from Contracts with Customers, generally comprises a single performance obligation. For performance obligations that occur over a period of time (e.g. consumers’ ability to access the features of Sezzle Premium over the subscription term), we recognize total revenue straight-line over the duration of the performance obligation. All performance obligations are fully satisfied within one year of receiving payment. Total income to be recognized over the remaining duration of outstanding performance obligations was $1,516,228 as of December 31, 2022. We had no deferred revenue related to ASC Topic 606 as of December 31, 2021. Concentrations of Total Income For the year ended December 31, 2022, approximately 14% of total income was earned from one merchant. For the year ended December 31, 2021, there were no merchants that exceeded 10% of total income.

Notes Receivable

Notes Receivable	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Notes Receivable	Notes Receivable Our notes receivable comprise outstanding consumer principal and reschedule fees that we reasonably expect to collect from our consumers. As of December 31, 2022 and 2021, Sezzle’s notes receivable, related allowance for uncollectible accounts, and deferred transaction income are recorded within the consolidated balance sheets as follows: 2022 2021 Notes receivable, gross $ 107,650,187 $ 162,341,675 Less allowance for uncollectible accounts: Balance at beginning of year (23,114,173) (11,133,146) Provision (29,437,179) (52,621,682) Charge-offs, net of recoveries totaling $5,040,041 and $6,153,728, respectively 42,327,901 40,640,655 Total allowance for uncollectible accounts (10,223,451) (23,114,173) Notes receivable, net of allowance 97,426,736 139,227,502 Deferred transaction income (4,068,332) (5,240,919) Notes receivable, net $ 93,358,404 $ 133,986,583 We maintain an allowance for uncollectible accounts at a level necessary to absorb estimated probable losses on principal and reschedule fee receivables from consumers. Any amounts delinquent after 90 days are charged-off with an offsetting reversal of the allowance for doubtful accounts through the provision for uncollectible accounts. Additionally, amounts identified as no longer collectible—such as when a consumer becomes deceased or bankrupt—are charged off immediately. Principal payments recovered after the 90 day charge-off period are recognized as a reduction to the allowance for uncollectible accounts in the period the receivable is recovered. We estimate the allowance for uncollectible accounts by segmenting our consumer accounts receivable by the number of days balances are delinquent. Balances that are at least one day past the initial due date are considered delinquent. Balances that are not delinquent are considered current. The principal associated with rescheduled payments are not considered delinquent. We use our judgment to evaluate the allowance for uncollectible accounts based on current economic conditions and historical performance of consumer payments. The historical vintages are grouped into semi-monthly populations for purposes of the allowance assessment. The balances of historical cumulative charge-offs by vintage support the calculation for estimating the allowance for uncollectible accounts for vintages outstanding less than 90 days. We have not changed the methodology for estimating our allowance for uncollectible accounts during the year ended December 31, 2022. Deferred transaction income is comprised of unrecognized merchant fees and consumer reschedule fees net of direct note origination costs, which are recognized over the duration of the note with the consumer and are recorded as an offset to transaction income on the consolidated statements of operations and comprehensive loss. Our notes receivable had a weighted average days outstanding of 34 days, consistent with the prior year’s duration. The following table summarizes our gross notes receivable and related allowance for uncollectible accounts as of December 31, 2022 and 2021: 2022 2021 Gross Receivables Less Allowance Net Receivables Gross Receivables Less Allowance Net Receivables Current $ 96,923,113 $ (3,348,558) $ 93,574,555 $ 139,024,393 $ (7,989,217) $ 131,035,176 Days past due: 1–28 5,516,812 (2,146,103) 3,370,709 12,263,154 (5,126,611) 7,136,543 29–56 2,513,755 (2,063,131) 450,624 5,266,164 (4,267,236) 998,928 57–90 2,696,507 (2,665,659) 30,848 5,787,964 (5,731,109) 56,855 Total $ 107,650,187 $ (10,223,451) $ 97,426,736 $ 162,341,675 $ (23,114,173) $ 139,227,502

Other Receivables

Other Receivables	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Other Receivables	Other Receivables As of December 31, 2022 and 2021, the balance of other receivables, net, on the consolidated balance sheets was comprised of the following: 2022 2021 Account reactivation fees receivable, net $ 209,734 $ 1,325,443 Receivables from merchants, net 2,322,976 3,758,656 Other receivables, net $ 2,532,710 $ 5,084,099 Account reactivation fees are applied to principal installments that are delinquent for more than 48 hours (or longer depending on the regulations within a specific state jurisdiction) after the scheduled installment payment date. Any account reactivation fees associated with a delinquent payment are considered to be the same number of days delinquent as the principal payment. Account reactivation fees receivable, net, is comprised of outstanding account reactivation fees that we reasonably expect to collect from our consumers. As of December 31, 2022 and 2021, our account reactivation fees receivable and related allowance for uncollectible accounts are recorded within the consolidated balance sheets as follows: 2022 2021 Account reactivation fees receivable, gross $ 1,190,447 $ 3,016,514 Less allowance for uncollectible accounts: Balance at start of period (1,691,071) (1,071,588) Provision (7,588,253) (6,128,851) Charge-offs, net of recoveries totaling $1,252,437 and $1,273,319, respectively 8,298,611 5,509,368 Total allowance for uncollectible accounts (980,713) (1,691,071) Account reactivation fees receivable, net $ 209,734 $ 1,325,443 We maintain the allowance at a level necessary to absorb estimated probable losses on consumer account reactivation fee receivables. Any amounts delinquent after 90 days are charged-off with an offsetting reversal of the allowance for doubtful accounts through the provision for uncollectible accounts. Additionally, amounts identified as no longer collectible—such as when a consumer becomes deceased or bankrupt—are charged off immediately. Payments recovered after the 90 day charge-off period are recognized as a reduction to the allowance for uncollectible accounts in the period the receivable is recovered. We did not change the methodology for estimating our allowance for uncollectible accounts during the year ended December 31, 2022. Receivables from merchants primarily represent merchant fees receivable for orders settled with our virtual card solution. Such receivables totaled $2,177,028 and $3,738,765 as of December 31, 2022 and 2021, respectively. Virtual card transactions are settled with the merchant for the full purchase price at the point of sale and we separately invoice the merchant for the merchant fees due to us. There is no allowance for uncollectible accounts recorded against merchant fees receivable. Additionally, we had other uncollectible receivables, net, which totaled $145,948 and $19,891 as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, we recorded direct write-downs of $1,669,031 and $1,221,001, respectively, related to these other receivables from merchants which are included in transaction expense on the consolidated statements of operations and comprehensive loss.

Merchant Accounts Payable

Merchant Accounts Payable	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Merchant Accounts Payable	Merchant Accounts Payable Merchant accounts payable represents amounts owed to merchants related to orders placed on the Sezzle Platform. Merchant accounts payable in total were $83,020,739 and $96,516,668 as of December 31, 2022 and 2021, respectively, as disclosed in the consolidated balance sheets. We offer our merchants an interest bearing program in which merchants may defer payment from us in exchange for interest. Within merchant accounts payable, $66,469,982 and $78,097,910 were recorded within the merchant interest program balance as of December 31, 2022 and 2021, respectively. Effective August 1, 2022, all deferred payments retained in the program bear interest at a fixed rate of 3.8% on an annual basis, compounding daily. Between March 1, 2022 and July 31, 2022 deferred payments retained in the program bore interest at the Secured Overnight Financing Rate (“SOFR”) plus three percent on an annual basis, compounding daily, and prior to March 1, 2022 the LIBOR daily (3 month) rate plus three percent on an annual basis, compounding daily. The weighted average annual percentage yield and related interest expense was 3.56% and $2,484,997, and 3.22% and $2,314,770 for the years ended December 31, 2022 and 2021, respectively. Deferred payments are due on demand, up to $250,000 during any seven day period, at the request of the merchant. Any request larger than $250,000 is processed within seven to ten days. We reserve the right to impose additional limits on the program and make changes to the program without notice or limits. These limits and changes to the program can include but are not limited to: maximum balances, withdrawal amount limits, and withdrawal frequency.

Internally Developed Intangible

Internally Developed Intangible Assets	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Internally Developed Intangible Assets	Internally Developed Intangible Assets As of December 31, 2022 and 2021, internally developed intangible assets, net, consisted of the following: 2022 2021 Internally developed intangible assets, gross 2,550,420 1,657,637 Less accumulated amortization (1,227,584) (747,053) Internally developed intangible assets, net $ 1,322,836 $ 910,584 Amortization expense relating to internally developed intangible assets was $503,907 and $355,043 for the years ended December 31, 2022 and 2021, respectively, and is recorded within general and administrative on the consolidated statements of operations and comprehensive loss.

Long Term Debt

Long Term Debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Long Term Debt	Long Term Debt Minnesota Department of Employment and Economic Development Loan On July 26, 2018, the Minnesota Department of Employment and Economic Development (“DEED”) funded a $250,000 seven-year interest-free loan to us under the State Small Business Credit Initiative Act of 2010 (the “Act”). The Act was created for additional funds to be allocated and dispersed by states that have created programs to increase the amount of capital made available by private lenders to small businesses. The loan proceeds are used for business purposes, primarily start-up costs and working capital needs. The loan may be prepaid in whole or in part at any time without penalty. If more than fifty percent of the ownership interest in Sezzle is transferred during the term of the loan, the loan will be required to be paid in full, along with a penalty in the amount of thirty percent of the original loan amount. The loan matures and is due to be paid back to DEED in June 2025. Paycheck Protection Program Loan On June 24, 2021, we repaid our Paycheck Protection Program (“PPP”) loan from the U.S. Small Business Administration (“SBA”) in full, comprising $1,220,332 in principal and $14,779 in accrued interest. The PPP, established as part of the CARES Act, provides loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The PPP loan terms carry an interest rate of 1% and do not include prepayment penalties. The SBA reserves the right to audit any PPP loan, regardless of size. These audits may occur after forgiveness has been granted or the loan has been repaid in full. In accordance with the CARES Act, all borrowers are required to maintain their PPP loan documentation for six years after the PPP loan was forgiven or repaid in full and to provide that documentation to the SBA upon request.

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Line of Credit	Line of Credit We fund our consumer receivables through the use of secured lines of credit. We had an outstanding principal balance on our lines of credit totaling $65,000,000 and $78,800,000 as of December 31, 2022 and 2021, respectively. Our revolving credit facilities are secured by a pool of pledged, eligible notes receivable. As of December 31, 2022 and 2021, we had pledged $89,797,068 and $149,203,705 of eligible gross notes receivable, respectively, which had carrying values of $84,980,543 and $136,268,535, respectively. We had an unused borrowing capacity of $477,606 and $29,771,561 as of December 31, 2022 and 2021, respectively. Expenses related to our lines of credit for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Interest expense on utilization $ 5,114,727 $ 1,745,528 Interest expense on unused daily amounts 268,787 560,687 Amortization of debt issuance costs 983,745 689,930 Loss on extinguishment of line of credit 813,806 1,092,679 As of December 31, 2022 and 2021, our lines of credit carried a weighted average interest rate of 16.07% and 5.25%, respectively. 2021 Credit Agreement On February 10, 2021, we entered into a secured revolving credit facility (the “2021 Credit Agreement”) with Goldman Sachs Bank USA (the “Class A lender”), and Bastion Consumer Funding II LLC and Bastion Funding IV LLC (the “Class B lenders”). The 2021 Credit Agreement originally had a borrowing capacity of up to $250,000,000 and a maturity date of June 12, 2023. Our borrowing base under the 2021 Credit Agreement was originally 90% of pledged, eligible notes receivable, or 85% if the weighted average FICO scores of the pledged receivables fell below 580. Eligible notes receivable were defined as notes receivable from consumers in the United States or Canada that are less than 15 days past due. Effective July 31, 2022, we amended the 2021 Credit Agreement, which reduced the borrowing capacity to $64,287,184 and lowered the borrowing base rate to 70%. Prior to January 1, 2022, the 2021 Credit Agreement carried an interest rate of 3-month LIBOR plus 3.375% and 3-month LIBOR plus 10.689% with a LIBOR floor rate of 0.25% for funds borrowed from the Class A lender and Class B lenders, respectively. Effective January 1, 2022, we amended our 2021 Credit Agreement to replace references to LIBOR with U.S. Federal Reserve Secured Overnight Financing Rate (“SOFR”) plus a spread adjustment of 0.262% (collectively, “Adjusted SOFR”). From January 1, 2022 to July 30, 2022, the 2021 Credit Agreement carried an interest rate of Adjusted SOFR plus 3.375% and Adjusted SOFR plus 10.689% with an Adjusted SOFR floor rate of 0.25% for funds borrowed from the Class A lender and Class B lenders, respectively. Effective July 31, 2022, the interest rate increased to Adjusted SOFR plus 4.375% and Adjusted SOFR plus 11.689% for funds borrowed from the Class A lender and Class B lenders, respectively. Interest on borrowings was due on collection dates as specified in the loan agreement, typically every two weeks. Additionally, any unused daily amounts incurred a facility fee of 0.50% per annum until May 11, 2021. Beginning May 11, 2021, the facility fee rate became variable, dependent on the percentage of the facility utilized. If less than one-third of the facility was used, the rate was 0.65% per annum; if between one-third and two-thirds of the facility was used, the rate was 0.50% per annum; and if more than two-thirds of the facility was used, the rate was 0.35% per annum. The 2021 Credit Agreement contains customary representations, warranties, affirmative and negative covenants, financial covenants, events of default (including upon change of control or upon collateral loss rates exceeding pre-determined levels), and indemnification provisions in favor of the lenders. The negative covenants include restrictions regarding incurrence or guarantee of additional indebtedness, incurrence of liens, making investments or other restricted payments, acquiring assets or subsidiaries, selling assets, paying dividends or distributions, repurchasing or redeeming capital stock, transacting with affiliates, and engaging in liquidations or mergers, in each case subject to certain exceptions and qualifications. The financial covenants required us to meet financial tests related to tangible net worth, liquidity, and leverage. In the event of a prepayment due to a broadly marketed and distributed securitization transaction with a party external to the agreement, an exit fee of 0.75% of such prepaid balance was due to the lender upon such transaction. Total cash payments for debt issuance costs related to the 2021 Credit Agreement were $1,697,705. On October 14, 2022, we amended the 2021 Credit Agreement, effectively terminating the agreement, and incurred a loss of $813,806 related to the extinguishment. 2022 Credit Agreement On October 14, 2022, we entered into a secured revolving credit facility (the “2022 Credit Agreement”) with Bastion Funding IV, LLC and other certain lenders. The 2022 Credit Agreement has a borrowing capacity of up to $100,000,000 and a maturity date of October 14, 2024. The borrowing base is 75% of pledged, eligible notes receivable. The 2022 Credit Agreement carries an interest rate of Adjusted SOFR plus 11.5%, with an Adjusted SOFR floor rate of 1.0%. Interest on borrowings is due on collection dates as specified in the loan agreement, typically every two weeks. We incur an unused facility fee of 0.50% per annum on the difference between the amount outstanding and the maximum borrowing capacity. We were also required to maintain a minimum outstanding balance of $50,000,000 prior to December 31, 2022, and are required to maintain a minimum outstanding balance of $75,000,000 between December 31, 2022 and March 30, 2023. After that, the requirement increases to $80,000,000. The 2022 Credit Agreement contains customary representations, warranties, affirmative and negative covenants, financial covenants, events of default (including upon change of control or upon collateral loss rates exceeding pre-determined levels), and indemnification provisions in favor of the lenders. The negative covenants include restrictions regarding incurrence or guarantee of additional indebtedness, incurrence of liens, making investments or other restricted payments, acquiring assets or subsidiaries, selling assets, paying dividends or distributions, repurchasing or redeeming capital stock, transacting with affiliates, engaging in liquidations or mergers, and making changes to our credit guidelines or servicing guide, in each case subject to certain exceptions and qualifications. The financial covenants require us to meet financial tests related to tangible net worth, liquidity, and leverage. Total cash payments for debt issuance costs related to the 2022 Credit Agreement were $1,330,901.

Warrant Obligations

Warrant Obligations	12 Months Ended
	Dec. 31, 2022
Other Liabilities Disclosure [Abstract]
Warrant Obligations	Warrant Obligations On October 14, 2022, in connection with entering into the 2022 Credit Agreement, we issued our lenders warrants to purchase up to 2,075,064 shares of our common stock as consideration for the revolving credit facility. These warrants are exercisable until October 14, 2029 at an exercise price of A$0.49 per share. In connection with the warrant issuance, we recognized a line of credit commitment asset of $561,719 upon execution of the warrant agreement, valued utilizing the Black-Scholes valuation model. This asset is amortized over the two year term of the credit agreement. As of December 31, 2022, the carrying value of this asset was $501,783 and recorded within other assets on the consolidated balance sheets. The warrants are denominated in Australian dollars and therefore are not considered indexed to the Company’s stock given our functional currency is the U.S. dollar. Therefore, we have recognized the warrants as a liability on the consolidated balance sheets and revalue the warrants to their fair value as of each reporting date. We valued the warrants as of December 31, 2022 using the Black-Scholes valuation model, using a risk-free interest rate of 3.88%, expected volatility of 115%, and an expected life of 6.8 years, resulting in an estimated fair value of $0.25 per warrant. As of December 31, 2022, the weighted average exercise price for the warrants was $0.33 and their fair market value was $511,295. None of the warrants have been exercised or cancelled. For the year ended December 31, 2022, we recognized a fair value remeasurement gain of $50,424 within other income on the consolidated statements of operations and comprehensive loss.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The components of loss before taxes for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 United States $ (32,493,098) $ (63,143,175) International (5,531,211) (11,966,772) Total $ (38,024,309) $ (75,109,947) The components of income tax expense for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Current tax expense Federal $ — $ — Foreign — — State 69,447 58,416 Deferred tax expense Federal — — Foreign — — State — — Income tax expense $ 69,447 $ 58,416 The components of the net deferred tax assets and liabilities as of December 31, 2022 and December 31, 2021 are as follows: 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 25,459,247 $ 17,865,584 Allowance for uncollectible accounts 3,389,435 6,171,512 Equity based compensation 1,322,642 3,273,873 Research and experimental expenditures 216,391 — Lease liability 17,575 50,408 Startup costs 9,514 10,517 Accruals 458,609 328,154 Nondeductible interest 3,816,974 945,153 Other 365,743 290,029 Total net deferred tax assets 35,056,130 28,935,230 Valuation allowance (34,868,210) (28,842,025) Deferred tax liabilities: Depreciation and amortization (168,505) (36,457) Equity based compensation — (356) Right-of-use asset (19,415) (56,392) Total net deferred tax liabilities (187,920) (93,205) Net deferred tax asset (liability) $ — $ — A reconciliation of our provision for income taxes at the federal statutory rate to the reported income tax provision for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Computed "expected" tax benefit (21.0) % (21.0) % State income tax benefit, net of federal tax effect (2.6) (2.6) Nondeductible equity based compensation 9.7 1.2 Other permanent differences (0.5) 0.3 Change in valuation allowance 15.9 23.5 Foreign rate differentials and other (1.3) (1.3) Income tax expense 0.2 % 0.1 % As of December 31, 2022, we had federal, state, and foreign net operating loss carryforwards of approximately $84,234,000, $48,087,000, and $19,120,000, respectively. The federal net operating loss carryforwards that originated after 2017 have an indefinite life and may be used to offset 80% of a future year’s taxable income. The federal net operating loss carryforwards that originated prior to 2018 have expiration dates between 2036 and 2037. The state net operating losses will carryforward for between 15 years and indefinitely and begin to expire in 2031. Our ability to utilize a portion of our net operating loss carryforwards to offset future taxable income is subject to certain limitations under Section 382 of the Internal Revenue Code due to changes in our equity ownership. An ownership change under Section 382 has not been determined at this time. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2022. Such objective evidence limits the ability to consider other subjective evidence, such as our projections for future growth. On the basis of this evaluation, as of December 31, 2022, a valuation allowance of $34,868,210 has been recorded to recognize only the portion of the deferred tax asset that is more likely than not to be realized.. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight is given to subjective evidence such as our projections for growth. The change in valuation allowance was approximately $6,026,000 and $17,615,000 for the years ended December 31, 2022 and 2021, respectively. We file income tax returns in the U.S. federal jurisdiction, Brazil, Canada, Germany, India, Lithuania, the Netherlands, and various U.S. states. We do not believe an uncertain tax position exists as of December 31, 2022. Based on our assessment of many factors, including past experience and complex judgements about future events, we do not currently anticipate significant changes in our uncertain tax positions over the next 12 months. In connection with the adoption of the referenced provisions, we recognize interest and penalties accrued related to unrecognized tax benefits in income tax expense. As of December 31, 2022, we had no accrued interest and penalties. Our federal and state tax returns are open for review going back to the 2019 tax year. Management’s intention is to reinvest foreign earnings into our foreign operations. To date, our various foreign subsidiaries do not have any earnings.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Merchant Contract Obligations We have entered into several agreements with third-parties in which we will reimburse these third-parties for mutually agreed upon co-branded marketing and advertising costs. As of December 31, 2022 and 2021, we had outstanding agreements that stipulate we will commit to spend up to approximately $19.4 million and $35.1 million, respectively, in marketing and advertising spend in future periods. These agreements have remaining contractual terms of two years or less. Expenses incurred relating to these agreements totaled $17,023,522 and $6,496,361 for the years ended December 31, 2022 and 2021, respectively. These expenses are included within marketing, advertising, and tradeshows on the consolidated statements of operations and comprehensive loss. Certain agreements also contain provisions that may require payments by us and are contingent on us and/or the third party meeting specified criteria, such as achieving implementation benchmarks. As of December 31, 2022 and 2021, we had outstanding agreements that stipulate we may spend approximately $6.1 million and $6.7 million, respectively, in future periods if such criteria are met.

Stockholders_ Equity

Stockholders’ Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders’ Equity	Stockholders’ Equity Repurchase of Common Stock We retain a portion of vested restricted stock units to cover withholding taxes for employees. As of December 31, 2022, we had withheld 1,088,236 shares at a value totaling $4,072,752. As of December 31, 2021, we had withheld 660,118 shares at a value totaling $3,691,322. We recognize these amounts as treasury stock, at cost, within the consolidated balance sheets as a reduction to stockholders’ equity. Issuance of Common Stock On July 14, 2021, we agreed to issue Discover Financial Services LLC $30,000,000 of our common stock at a price of $6.58 per share (A$8.83), which was completed on July 19, 2021. We incurred issuance costs of $2,768 in connection to this sale. The proceeds from the sale, net of such issuance costs, are recorded within stockholders’ equity on the consolidated balance sheets.

Equity Based Compensation

Equity Based Compensation	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Equity Based Compensation	Equity Based Compensation We issue incentive and non-qualified stock options, restricted stock units, and restricted stock awards to employees and non-employees with vesting requirements varying from six months to four years. We utilize the Black-Scholes valuation model for valuing stock option issuances and the grant date fair value for valuing restricted stock issuances. Equity based compensation expense, including vesting of restricted stock units, totaled $10,309,535 and $14,161,754 for the years ended December 31, 2022 and 2021, respectively. Equity based compensation expense is recorded within personnel on the consolidated statements of operations and comprehensive loss. 2016 Employee Stock Option Plan We adopted the 2016 Employee Stock Option Plan on January 16, 2016. The number of awards authorized for issuance under the plan was 10,000,000. We had 2,946,077 and 5,659,017 options issued and outstanding under the plan as of December 31, 2022 and 2021, respectively. We had no restricted stock awards issued and outstanding as of December 31, 2022, and 38,888 restricted stock awards issued and outstanding as of December 31, 2021. During the years ended December 31, 2022 and 2021, 2,658,774 and 889,320 options were exercised into 2,633,551 and 888,815 shares of common stock, respectively. Differences between options exercised and common stock issued are due to shares withheld to cover exercise costs. 2019 Equity Incentive Plan We adopted the 2019 Equity Incentive Plan on June 25, 2019. The number of awards authorized for issuance under the plan was 26,000,000. We had 8,092,375 and 15,102,771 options issued and outstanding as of December 31, 2022 and 2021, respectively; and 200,625 and 1,467,292 restricted stock units issued and outstanding as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, 457,552 and 835,684 options were exercised into 395,929 and 794,582 shares of common stock, respectively. Differences between options exercised and common stock issued are due to shares withheld to cover exercise costs. 2021 Equity Incentive Plan We adopted the 2021 Equity Incentive Plan on June 15, 2021. The number of awards authorized for issuance under the plan is 33,169,237. As of December 31, 2022 and 2021, we had 234,167 and 433,980 options issued and outstanding, respectively. We had 12,831,071 and 4,316,959 restricted stock units issued and outstanding as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, no options issued under this plan were exercised into shares of common stock. The following tables summarize the options issued, outstanding, and exercisable under our equity based compensation plans as of December 31, 2022 and 2021: For the year ended December 31, 2022 Number of Options Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Life Outstanding, beginning of year 21,195,768 $ 1.74 $ 23,079,520 7.76 Granted 395,313 0.73 — — Exercised (3,029,480) 0.16 2,383,405 — Canceled (7,288,982) 2.59 — — Outstanding, end of year 11,272,619 1.56 686,035 6.14 Exercisable, end of year 9,656,457 1.30 685,914 5.89 Expected to vest, end of year 1,616,162 $ 3.10 $ 121 7.61 For the year ended December 31, 2021 Number of Options Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Life Outstanding, beginning of year 24,515,544 $ 1.34 $ 84,731,639 8.65 Granted 1,922,480 6.29 — — Exercised (1,683,397) 0.71 8,329,397 — Canceled (3,558,859) 2.37 — — Outstanding, end of year 21,195,768 1.74 23,079,520 7.76 Exercisable, end of year 11,137,578 1.02 16,036,993 7.05 Expected to vest, end of year 10,058,190 $ 2.55 $ 7,042,527 8.55 The following table represents the assumptions used for estimating the fair values of stock options granted to our employees, contractors, and non-employees under the Black-Scholes valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2022 2021 Risk-free interest rate 3.46%–3.91% 0.65%–1.07% Expected volatility 115.75%–116.01% 87.39%–90.89% Expected life (in years) 6.00 6.00 Weighted average estimated fair value of options granted $ 0.73 $ 4.95 Restricted stock award and restricted stock unit transactions during the years ended December 31, 2022 and 2021 are summarized as follows: For the year ended December 31, 2022 For the year ended December 31, 2021 Number of Shares Weighted Average Number of Shares Weighted Average Unvested shares, beginning of year 5,823,139 $ 4.22 2,833,743 $ 3.37 Granted 15,213,789 0.59 4,733,804 4.64 Vested (1,388,421) 3.81 (1,686,349) 4.19 Forfeited or surrendered (6,616,811) 2.74 (58,059) 6.25 Unvested shares, end of year 13,031,696 $ 0.79 5,823,139 $ 4.22 During the year ended December 31, 2022, employees and non-employees received restricted stock units totaling 15,213,789. Vesting of restricted stock units and restricted stock awards totaled 1,349,533 and 38,888, respectively. The shares underlying the restricted stock units granted in 2022 were assigned a weighted average fair value of $0.59 per share, for a total value of $8,976,136. The restricted stock issuances are scheduled to vest over a range of one During the year ended December 31, 2021, employees and non-employees received restricted stock units totaling 4,733,804. Vesting of restricted stock units and restricted stock awards totaled 1,569,681 and 116,668, respectively. The shares underlying the restricted stock units granted in 2021 were assigned a weighted average fair value of $4.64 per share, for a total value of $21,964,851. The restricted stock issuances are scheduled to vest over a range of one As of December 31, 2022, the total compensation cost related to non-vested awards not yet recognized is $9,984,655 and is expected to be recognized over the weighted average remaining recognition period of approximately 2.0 years. As of December 31, 2021, the total compensation cost related to non-vested awards not yet recognized is $27,266,222 and is expected to be recognized over the weighted average remaining recognition period of approximately 2.7 years. Short-Term Incentive Plan During 2021, we determined the final compensation amounts for our 2020 short-term incentive plan and issued restricted stock units valued at $1,996,779 as compensation to eligible employees, recorded as a reclassification from accrued liabilities to stockholders’ equity. We did not have an accrual for the short-term incentive program as of December 31, 2022 or December 31, 2021. Long-Term Incentive Plan During 2021, an executive became eligible for the LTIP program and was issued an option award on March 12, 2021. The total fair value of the award is equal to 200% of the individual’s salary in effect on the date of grant. The awards have an exercise price of A$8.00 and a fair value of $3.06 per award. This award is subject to the same market and service vesting conditions as the grants issued in 2020, though is measured over a two-year period ending January 1, 2023. The following table represents the assumptions used for estimating the fair values of stock options granted to executives for the year ended December 31, 2021 under our long-term incentive program using the Monte Carlo Simulation valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2021 Risk-free interest rate 1.62 % Expected volatility 87.40 % Expected life (in years) 5.81 Weighted average estimated fair value of options granted $ 3.06 On June 10, 2021, we also received shareholder approval to grant the long-term incentive plan awards to executive board members in the form of performance-based restricted stock units. Upon the approval, we reclassified the award from other long-term liabilities to stockholders’ equity. The total fair value reclassified from liability to stockholders’ equity for these awards totaled $8,580,123. Total expense recognized related to compensation under the long-term incentive program was $4,269,967 for the year ended December 31, 2021. During the year ended December 31, 2022 we recorded $1,070,543 of equity based compensation expense related to the long-term incentive plan, offset by expense reversals totaling ($1,244,999) resulting from awards that were forfeit prior to the vesting service condition being met.

Short and Long-Term Incentive P

Short and Long-Term Incentive Plans	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Short and Long–Term Incentive Plans	Equity Based Compensation We issue incentive and non-qualified stock options, restricted stock units, and restricted stock awards to employees and non-employees with vesting requirements varying from six months to four years. We utilize the Black-Scholes valuation model for valuing stock option issuances and the grant date fair value for valuing restricted stock issuances. Equity based compensation expense, including vesting of restricted stock units, totaled $10,309,535 and $14,161,754 for the years ended December 31, 2022 and 2021, respectively. Equity based compensation expense is recorded within personnel on the consolidated statements of operations and comprehensive loss. 2016 Employee Stock Option Plan We adopted the 2016 Employee Stock Option Plan on January 16, 2016. The number of awards authorized for issuance under the plan was 10,000,000. We had 2,946,077 and 5,659,017 options issued and outstanding under the plan as of December 31, 2022 and 2021, respectively. We had no restricted stock awards issued and outstanding as of December 31, 2022, and 38,888 restricted stock awards issued and outstanding as of December 31, 2021. During the years ended December 31, 2022 and 2021, 2,658,774 and 889,320 options were exercised into 2,633,551 and 888,815 shares of common stock, respectively. Differences between options exercised and common stock issued are due to shares withheld to cover exercise costs. 2019 Equity Incentive Plan We adopted the 2019 Equity Incentive Plan on June 25, 2019. The number of awards authorized for issuance under the plan was 26,000,000. We had 8,092,375 and 15,102,771 options issued and outstanding as of December 31, 2022 and 2021, respectively; and 200,625 and 1,467,292 restricted stock units issued and outstanding as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, 457,552 and 835,684 options were exercised into 395,929 and 794,582 shares of common stock, respectively. Differences between options exercised and common stock issued are due to shares withheld to cover exercise costs. 2021 Equity Incentive Plan We adopted the 2021 Equity Incentive Plan on June 15, 2021. The number of awards authorized for issuance under the plan is 33,169,237. As of December 31, 2022 and 2021, we had 234,167 and 433,980 options issued and outstanding, respectively. We had 12,831,071 and 4,316,959 restricted stock units issued and outstanding as of December 31, 2022 and 2021, respectively. During the years ended December 31, 2022 and 2021, no options issued under this plan were exercised into shares of common stock. The following tables summarize the options issued, outstanding, and exercisable under our equity based compensation plans as of December 31, 2022 and 2021: For the year ended December 31, 2022 Number of Options Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Life Outstanding, beginning of year 21,195,768 $ 1.74 $ 23,079,520 7.76 Granted 395,313 0.73 — — Exercised (3,029,480) 0.16 2,383,405 — Canceled (7,288,982) 2.59 — — Outstanding, end of year 11,272,619 1.56 686,035 6.14 Exercisable, end of year 9,656,457 1.30 685,914 5.89 Expected to vest, end of year 1,616,162 $ 3.10 $ 121 7.61 For the year ended December 31, 2021 Number of Options Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Life Outstanding, beginning of year 24,515,544 $ 1.34 $ 84,731,639 8.65 Granted 1,922,480 6.29 — — Exercised (1,683,397) 0.71 8,329,397 — Canceled (3,558,859) 2.37 — — Outstanding, end of year 21,195,768 1.74 23,079,520 7.76 Exercisable, end of year 11,137,578 1.02 16,036,993 7.05 Expected to vest, end of year 10,058,190 $ 2.55 $ 7,042,527 8.55 The following table represents the assumptions used for estimating the fair values of stock options granted to our employees, contractors, and non-employees under the Black-Scholes valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2022 2021 Risk-free interest rate 3.46%–3.91% 0.65%–1.07% Expected volatility 115.75%–116.01% 87.39%–90.89% Expected life (in years) 6.00 6.00 Weighted average estimated fair value of options granted $ 0.73 $ 4.95 Restricted stock award and restricted stock unit transactions during the years ended December 31, 2022 and 2021 are summarized as follows: For the year ended December 31, 2022 For the year ended December 31, 2021 Number of Shares Weighted Average Number of Shares Weighted Average Unvested shares, beginning of year 5,823,139 $ 4.22 2,833,743 $ 3.37 Granted 15,213,789 0.59 4,733,804 4.64 Vested (1,388,421) 3.81 (1,686,349) 4.19 Forfeited or surrendered (6,616,811) 2.74 (58,059) 6.25 Unvested shares, end of year 13,031,696 $ 0.79 5,823,139 $ 4.22 During the year ended December 31, 2022, employees and non-employees received restricted stock units totaling 15,213,789. Vesting of restricted stock units and restricted stock awards totaled 1,349,533 and 38,888, respectively. The shares underlying the restricted stock units granted in 2022 were assigned a weighted average fair value of $0.59 per share, for a total value of $8,976,136. The restricted stock issuances are scheduled to vest over a range of one During the year ended December 31, 2021, employees and non-employees received restricted stock units totaling 4,733,804. Vesting of restricted stock units and restricted stock awards totaled 1,569,681 and 116,668, respectively. The shares underlying the restricted stock units granted in 2021 were assigned a weighted average fair value of $4.64 per share, for a total value of $21,964,851. The restricted stock issuances are scheduled to vest over a range of one As of December 31, 2022, the total compensation cost related to non-vested awards not yet recognized is $9,984,655 and is expected to be recognized over the weighted average remaining recognition period of approximately 2.0 years. As of December 31, 2021, the total compensation cost related to non-vested awards not yet recognized is $27,266,222 and is expected to be recognized over the weighted average remaining recognition period of approximately 2.7 years. Short-Term Incentive Plan During 2021, we determined the final compensation amounts for our 2020 short-term incentive plan and issued restricted stock units valued at $1,996,779 as compensation to eligible employees, recorded as a reclassification from accrued liabilities to stockholders’ equity. We did not have an accrual for the short-term incentive program as of December 31, 2022 or December 31, 2021. Long-Term Incentive Plan During 2021, an executive became eligible for the LTIP program and was issued an option award on March 12, 2021. The total fair value of the award is equal to 200% of the individual’s salary in effect on the date of grant. The awards have an exercise price of A$8.00 and a fair value of $3.06 per award. This award is subject to the same market and service vesting conditions as the grants issued in 2020, though is measured over a two-year period ending January 1, 2023. The following table represents the assumptions used for estimating the fair values of stock options granted to executives for the year ended December 31, 2021 under our long-term incentive program using the Monte Carlo Simulation valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2021 Risk-free interest rate 1.62 % Expected volatility 87.40 % Expected life (in years) 5.81 Weighted average estimated fair value of options granted $ 3.06 On June 10, 2021, we also received shareholder approval to grant the long-term incentive plan awards to executive board members in the form of performance-based restricted stock units. Upon the approval, we reclassified the award from other long-term liabilities to stockholders’ equity. The total fair value reclassified from liability to stockholders’ equity for these awards totaled $8,580,123. Total expense recognized related to compensation under the long-term incentive program was $4,269,967 for the year ended December 31, 2021. During the year ended December 31, 2022 we recorded $1,070,543 of equity based compensation expense related to the long-term incentive plan, offset by expense reversals totaling ($1,244,999) resulting from awards that were forfeit prior to the vesting service condition being met.

Employee Benefit Plan

Employee Benefit Plan	12 Months Ended
	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit Plan During the years ended December 31, 2022 and 2021, we sponsored a defined contribution 401(k) plan for eligible U.S. employees. Participants in the plan can elect to defer a portion of their eligible compensation, on a pre- or post-tax basis, subject to annual statutory contribution limits. Additionally, in 2021 we began sponsoring a defined contribution Registered Retirement Savings Plan (“RRSP”) for eligible Canadian employees. Participants in the RRSP can elect to defer a portion of their eligible compensation on a pre-tax basis, subject to annual statutory contribution limits. Assets under both plans are held separately from ours in funds under the control of a third-party trustee. Effective July 1, 2021, we began matching up to six percent of employee contributions under both plans. During the years ended December 31, 2022 and 2021, we incurred expenses of $1,455,004 and $588,612, respectively, related to matching contributions.

Reimbursement of Merger-Related

Reimbursement of Merger-Related Costs	12 Months Ended
	Dec. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Reimbursement of Merger-Related Costs	Reimbursement of Merger-Related CostsOn July 11, 2022, we entered into a Termination Agreement (the “Termination Agreement”) with Zip Co Limited (“Zip”) to terminate the Agreement and Plan of Merger, dated February 28, 2022 (the “Merger Agreement”), by and among us, Zip, and Miyagi Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Zip (“Merger Sub”). Pursuant to the Termination Agreement, among other things, on July 12, 2022, we received $11,000,000 from Zip for reimbursement of internal and external merger-related costs, the Merger Agreement and other Transaction Agreements (including the Parent Support Agreements and the Company Support Agreements, each as defined in the Merger Agreement) were terminated by mutual consent of us and Zip. As part of the Termination Agreement, we and Zip also released each other from certain claims related to or arising out of the Merger Agreement and related transactions, none of which impacted the consolidated financial statements.

Net Loss Per Share

Net Loss Per Share	12 Months Ended
	Dec. 31, 2022
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per ShareThe computation for basic net loss per share is established by dividing net losses for the period by the weighted average shares outstanding during the reporting period, including repurchases carried as treasury stock. Diluted net loss per share is computed in a similar manner, with the weighted average shares outstanding increasing from the assumed exercise of employee stock options (including options classified as liabilities) and assumed vesting of restricted stock units (if dilutive). Given we are in a loss position, the impact of including assumed exercises of stock options and vesting of restricted stock units would have an anti-dilutive impact on the calculation of diluted net loss per share and, accordingly, diluted and basic net loss per share were equal for the years ended December 31, 2022 and 2021.

Principal Business Activity a_2

Principal Business Activity and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements are prepared and presented under accounting principles generally accepted in the United States of America (U.S. GAAP). All amounts are reported in U.S. dollars, unless otherwise noted.
Principles of Consolidation	We consolidate the accounts of subsidiaries for which we have a controlling financial interest. The accompanying consolidated financial statements include all the accounts and activity of Sezzle Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Liquidity and Financial Condition	Liquidity and Financial Condition Throughout the year ended December 31, 2022, we undertook various measures to address our liquidity and financial condition. On February 25, 2022 we amended our line of credit covenants which provided alternatives for certain financial covenant measurement thresholds. Additionally, throughout the year we tightened our underwriting strategies, resulting in a reduction in our overall provision for uncollectible accounts. On March 10, 2022 we undertook a workforce reduction that provided for a reduction in our personnel expense compared to the year ended December 31, 2021. Further, on October 14, 2022 we entered into a new line of credit agreement as disclosed in Note 8 of these consolidated financial statements. Our cost cutting measures during the year ended December 31, 2022 have resulted in lower operating expenses relative to the prior year, while also realizing higher year-over-year total income.
Concentrations of Credit Risk	Concentrations of Credit Risk Cash and Cash Equivalents Financial instruments that potentially expose us to concentrations of credit risk consist primarily of cash and cash equivalents. We maintain our cash in depository accounts that, at times, may exceed limits established by the Federal Deposit Insurance Corporation (“FDIC”) and equivalent foreign institutions. As of the date of this report, we have not experienced losses on such accounts. Foreign Currency Risk We hold funds and settle payments that are denominated in currencies other than U.S. dollars. Changes in foreign currency exchange rates expose us to fluctuations on our consolidated balance sheets and statements of operations and comprehensive loss. Currency risk is managed through limits set on total foreign deposits on hand that we routinely monitor. Notes Receivable We are exposed to the risk of credit losses as a result of extending credit to consumers. Changes in economic conditions may result in higher credit losses. We have a policy for establishing credit lines for individual consumers that helps mitigate credit risk. The allowance for uncollectible accounts is adequate for covering any potential losses on outstanding notes receivable.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all money market funds and other highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. We accept Automated Clearing House ("ACH"), Electronic Funds Transfer ("EFT"), debit card, and credit card payment methods from consumers as a method to settle our receivables, and these transactions are generally transmitted through third parties. The payments due from the third parties for debit card, credit card, ACH, and EFT transactions are generally settled within three days of initiation. We consider all bank, debit, and credit card transactions initiated before the end of the period to be cash and cash equivalents.
Restricted Cash	Restricted Cash We are required to maintain cash balances in a bank account in accordance with certain lending agreements. The bank account is our property, but access to consumer payments is controlled by our line of credit providers. On a regular basis, cash received from consumers is deposited to the bank account and subsequently made available to us through periodic settlement reporting with our line of credit providers. Cash deposits to the bank account represent cash received from originated receivables, including consumer payments and affiliate partner payments. The minimum balance consists of accrued interest on the drawn credit facility, accrued interest on the unused portion of the credit facility, and accrued management fees charged by our line of credit providers. We are permitted to withdraw cash from the bank account provided we meet certain requirements of the line of credit. We are also required to maintain a minimum balance in a deposit account with a third-party service provider to fund merchants using our virtual card solution. These accounts are classified as current restricted cash on the consolidated balance sheets.
Receivables and Credit Policy	Receivables and Credit Policy Notes receivable represent amounts from uncollateralized consumer receivables generated from the purchase of merchandise. The original terms of the notes for our core product are to be paid back in four equal installments every two weeks over a six-week period, with the first installment being paid at the time of purchase. We do not charge interest on the notes to consumers. Transaction income is recognized over the average life of the notes receivable using the effective interest rate method. These net deferred costs are recorded within notes receivable, net on the consolidated balance sheets. Notes receivable are recorded at net realizable value and are recorded as current assets. We evaluate the collectability of the balances based on historical performance, current economic conditions, and specific circumstances of individual notes, with an allowance for uncollectible accounts being provided as necessary. Other receivables represent the net realizable value of consumer account reactivation fees receivable, merchant accounts receivable, and merchant processing fees receivable. Consumer account reactivation fees receivable, less an allowance for uncollectible accounts, represent the amount of account reactivation fees we reasonably expect to receive from consumers. Receivables from merchants, less any allowances for uncollectible accounts, represent amounts merchants owe us relating to transactions placed by consumers on their sites that we reasonably expect to collect.
Debt Issuance Costs	Debt Issuance Costs Costs incurred in connection with originating debt are capitalized and are classified in the consolidated balance sheets as a reduction of the financial statement line item for which those costs relate. Debt issuance costs are amortized over the life of the underlying debt obligation utilizing the straight-line method, which approximates the effective interest method. In the event of an extinguishment of debt, the remaining unamortized debt issuance costs related to the extinguished debt is immediately expensed. Amortization of debt issuance costs is included within net interest expense on the consolidated statements of operations and comprehensive loss.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost, less accumulated depreciation. We capitalize all property and equipment exceeding $1,000. Depreciation is provided using either the straight-line or double-declining balance method, based on the useful lives of the assets: Years Method Computers and computer equipment 3 Double-declining balance Office equipment 5 Double-declining balance Furniture and fixtures 7 Straight-line Maintenance and repairs are expensed as incurred and recorded within general and administrative on the consolidated statements of operations and comprehensive loss.
Internally Developed Intangible Assets	Internally Developed Intangible Assets We capitalize costs incurred for web development and software developed for internal use. The costs capitalized primarily relate to direct labor costs for employees and contractors working directly on software development and implementation. Projects are eligible for capitalization once it is determined that the project is being designed or modified to meet internal business needs; the project is ready for its intended use; the total estimated costs to be capitalized exceed $1,000; and there are no plans to market, sell, or lease the project. Amortization is provided using the straight-line method, based on the useful lives of the intangible assets as follows: Years Method Internal use software 3 Straight-line Website development costs 3 Straight-line
Research and Development Costs	Research and Development Costs Research expenditures that relate to the development of new processes, including internally developed software, are expensed as incurred. Such costs were approximately $2,012,000 and $1,462,000 for the years ended December 31, 2022 and 2021, respectively. Research expenditures are recorded within personnel on the consolidated statements of operations and comprehensive loss.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We review the carrying value of property, equipment, and internally developed intangible assets for impairment whenever events and circumstances indicate that the assets’ carrying value may not be recoverable from the future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends, and prospects; the manner in which the asset is used; and the effects of obsolescence, demand, competition, and other economic factors. Impairments for the years ended December 31, 2022 and 2021 were not material. Impairment costs are recorded in general and administrative within operating expenses in the consolidated statements of operations and comprehensive loss.
Income Taxes	Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the basis of receivables, property and equipment, equity based compensation, and accrued liabilities for financial and income tax reporting. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Given our history of losses, a full valuation allowance is recorded against our deferred tax assets.
Advertising Costs	Advertising CostsAdvertising costs are expensed as incurred and consist of traditional marketing, digital marketing, sponsorships, promotional product expenses, and contractual obligations to co-market the Sezzle brand.
Equity Based Compensation	Equity Based CompensationWe maintain stock compensation plans that provide for equity based awards in the form of incentive and non-statutory stock options and restricted stock to our employees, directors, and advisors. Equity based compensation expense reflects the fair value of awards measured at the grant date and recognized over the relevant vesting period. We estimate the fair value of stock options without a market condition on the measurement date using the Black-Scholes valuation model. The fair value of stock options and restricted stock units with a market condition is estimated, at the date of grant, using the Monte Carlo Simulation model. The Black-Scholes and Monte Carlo Simulation models incorporate assumptions about stock price volatility, expected life of the awards, risk-free interest rate, and dividend yield. For valuing our stock option grants, significant judgment is required for determining the expected volatility of our common stock and is based on the historical volatility of both our common stock and our defined peer group. The fair value of restricted stock awards and restricted stock units is based on the fair market value of our common stock on the date of grant. The expense associated with equity based compensation is recognized over the requisite service period using the straight-line method. We issue new shares of common stock upon the exercise of stock options and vesting of restricted stock units.
Estimates	Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Our estimates and judgments are based on historical experience and various other assumptions that we believe are reasonable under the circumstances. The amount of assets and liabilities reported on our consolidated balance sheets and the amounts of income and expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, determining the allowance for uncollectible accounts recorded against outstanding receivables, the valuation of equity based compensation, and income taxes.
Fair Value	Fair Value Fair values are based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). The accounting guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The three levels of the fair value hierarchy are as follows: • Level 1 — Unadjusted quoted prices for identical assets or liabilities in active markets; • Level 2 — Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly for substantially the full term of the asset or liability; and • Level 3 — Unobservable inputs for the asset or liability, which include management’s own assumption about the assumptions market participants would use in pricing the asset or liability, including assumptions about risk.
Segments	Segments We conduct our operations through a single operating segment and, therefore, one reportable segment. There are no significant concentrations by state or geographical location, nor are there any significant individual customer concentrations by balance.
Foreign Currency	Foreign Currency We work with international merchants, creating exposure to gains and losses from foreign currency exchanges. Our income and cash can be affected by movements in the Canadian Dollar, Euro, Indian Rupee, and Brazilian Real. Losses from foreign exchange rate fluctuations that affected our net loss totaled ($118,831) and ($69,228) for the years ended December 31, 2022 and 2021, respectively. Foreign currency exchange gains and losses are recorded within other expense, net, on the consolidated statements of operations and comprehensive loss. The financial statements of our non-U.S. subsidiaries are translated into U.S. dollars in accordance with ASC 830, “Foreign Currency Matters”. Under ASC 830, if our assets and liabilities are recorded in certain non-U.S. functional currencies other than the U.S. dollar, they are translated at current rates of exchange. Revenue and expense items are translated at average monthly exchange rates. The resulting translation adjustments are recorded directly into accumulated other comprehensive (loss) income. Foreign currency translation adjustment income (loss) totaled ($1,207,885) and $69,406 for the years ended December 31, 2022 and 2021, respectively.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform with the current period presentation format. These reclassifications had no effect on our net loss or total comprehensive loss.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recently Adopted Accounting Guidance Standard Description Date of Adoption Effect on Consolidated Financial Statements ASU No. 2020-06 , Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity This ASU simplifies the accounting for convertible debt by eliminating the beneficial conversion feature and cash conversion feature models from the guidance and instead requires entities to record convertible debt at amortized cost. January 1, 2022 The adoption of this ASU did not have a material effect on our consolidated financial statements or on our disclosures. Recently Issued Accounting Guidance, Not Yet Adopted Within Our Consolidated Financial Statements Standard Description Date of Planned Adoption Effect on Consolidated Financial Statements ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU replaces the incurred loss impairment methodology with an expected credit loss methodology and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The standard also requires expanded disclosures related to credit losses and credit quality indicators. January 1, 2023 We do not expect the adoption of this ASU to have a material impact on our allowance for credit losses under the new standard. We will disclose credit quality indicators, gross writeoffs, and other required disclosures in our first quarter 2023 consolidated financial statements. ASU No. 2022-02 , Financial Instruments – Credit Losses: Troubled Debt Restructurings and Vintage Disclosures This ASU requires an entity to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments—Credit Losses—Measured at Amortized Cost. January 1, 2023 The impact of adopting this amendment is included within the impact of adoption of ASU No. 2016-13.

Principal Business Activity a_3

Principal Business Activity and Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2022
Accounting Policies [Abstract]
Schedule of Property and Equipment, Net	. Depreciation is provided using either the straight-line or double-declining balance method, based on the useful lives of the assets: Years Method Computers and computer equipment 3 Double-declining balance Office equipment 5 Double-declining balance Furniture and fixtures 7 Straight-line
Schedule of Intangible Assets	Amortization is provided using the straight-line method, based on the useful lives of the intangible assets as follows: Years Method Internal use software 3 Straight-line Website development costs 3 Straight-line As of December 31, 2022 and 2021, internally developed intangible assets, net, consisted of the following: 2022 2021 Internally developed intangible assets, gross 2,550,420 1,657,637 Less accumulated amortization (1,227,584) (747,053) Internally developed intangible assets, net $ 1,322,836 $ 910,584

Total Income (Tables)

Total Income (Tables)	12 Months Ended
	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	Our total income by category for the years ended December 31, 2022 and 2021 is as follows: 2022 2021 Transaction income $ 102,599,194 $ 93,498,598 Income from other services 22,971,247 21,318,037 Total income $ 125,570,441 $ 114,816,635

Notes Receivable (Tables)

Notes Receivable (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of Notes Receivable	As of December 31, 2022 and 2021, Sezzle’s notes receivable, related allowance for uncollectible accounts, and deferred transaction income are recorded within the consolidated balance sheets as follows: 2022 2021 Notes receivable, gross $ 107,650,187 $ 162,341,675 Less allowance for uncollectible accounts: Balance at beginning of year (23,114,173) (11,133,146) Provision (29,437,179) (52,621,682) Charge-offs, net of recoveries totaling $5,040,041 and $6,153,728, respectively 42,327,901 40,640,655 Total allowance for uncollectible accounts (10,223,451) (23,114,173) Notes receivable, net of allowance 97,426,736 139,227,502 Deferred transaction income (4,068,332) (5,240,919) Notes receivable, net $ 93,358,404 $ 133,986,583 As of December 31, 2022 and 2021, the balance of other receivables, net, on the consolidated balance sheets was comprised of the following: 2022 2021 Account reactivation fees receivable, net $ 209,734 $ 1,325,443 Receivables from merchants, net 2,322,976 3,758,656 Other receivables, net $ 2,532,710 $ 5,084,099 As of December 31, 2022 and 2021, our account reactivation fees receivable and related allowance for uncollectible accounts are recorded within the consolidated balance sheets as follows: 2022 2021 Account reactivation fees receivable, gross $ 1,190,447 $ 3,016,514 Less allowance for uncollectible accounts: Balance at start of period (1,691,071) (1,071,588) Provision (7,588,253) (6,128,851) Charge-offs, net of recoveries totaling $1,252,437 and $1,273,319, respectively 8,298,611 5,509,368 Total allowance for uncollectible accounts (980,713) (1,691,071) Account reactivation fees receivable, net $ 209,734 $ 1,325,443
Schedule of Gross Notes Receivable and Related Allowance by Aging	The following table summarizes our gross notes receivable and related allowance for uncollectible accounts as of December 31, 2022 and 2021: 2022 2021 Gross Receivables Less Allowance Net Receivables Gross Receivables Less Allowance Net Receivables Current $ 96,923,113 $ (3,348,558) $ 93,574,555 $ 139,024,393 $ (7,989,217) $ 131,035,176 Days past due: 1–28 5,516,812 (2,146,103) 3,370,709 12,263,154 (5,126,611) 7,136,543 29–56 2,513,755 (2,063,131) 450,624 5,266,164 (4,267,236) 998,928 57–90 2,696,507 (2,665,659) 30,848 5,787,964 (5,731,109) 56,855 Total $ 107,650,187 $ (10,223,451) $ 97,426,736 $ 162,341,675 $ (23,114,173) $ 139,227,502

Other Receivables (Tables)

Other Receivables (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of Other Receivables, Net	As of December 31, 2022 and 2021, Sezzle’s notes receivable, related allowance for uncollectible accounts, and deferred transaction income are recorded within the consolidated balance sheets as follows: 2022 2021 Notes receivable, gross $ 107,650,187 $ 162,341,675 Less allowance for uncollectible accounts: Balance at beginning of year (23,114,173) (11,133,146) Provision (29,437,179) (52,621,682) Charge-offs, net of recoveries totaling $5,040,041 and $6,153,728, respectively 42,327,901 40,640,655 Total allowance for uncollectible accounts (10,223,451) (23,114,173) Notes receivable, net of allowance 97,426,736 139,227,502 Deferred transaction income (4,068,332) (5,240,919) Notes receivable, net $ 93,358,404 $ 133,986,583 As of December 31, 2022 and 2021, the balance of other receivables, net, on the consolidated balance sheets was comprised of the following: 2022 2021 Account reactivation fees receivable, net $ 209,734 $ 1,325,443 Receivables from merchants, net 2,322,976 3,758,656 Other receivables, net $ 2,532,710 $ 5,084,099 As of December 31, 2022 and 2021, our account reactivation fees receivable and related allowance for uncollectible accounts are recorded within the consolidated balance sheets as follows: 2022 2021 Account reactivation fees receivable, gross $ 1,190,447 $ 3,016,514 Less allowance for uncollectible accounts: Balance at start of period (1,691,071) (1,071,588) Provision (7,588,253) (6,128,851) Charge-offs, net of recoveries totaling $1,252,437 and $1,273,319, respectively 8,298,611 5,509,368 Total allowance for uncollectible accounts (980,713) (1,691,071) Account reactivation fees receivable, net $ 209,734 $ 1,325,443

Internally Developed Intangib_2

Internally Developed Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Amortization is provided using the straight-line method, based on the useful lives of the intangible assets as follows: Years Method Internal use software 3 Straight-line Website development costs 3 Straight-line As of December 31, 2022 and 2021, internally developed intangible assets, net, consisted of the following: 2022 2021 Internally developed intangible assets, gross 2,550,420 1,657,637 Less accumulated amortization (1,227,584) (747,053) Internally developed intangible assets, net $ 1,322,836 $ 910,584

Line of Credit (Tables)

Line of Credit (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Expenses Related to Line of Credit	Expenses related to our lines of credit for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Interest expense on utilization $ 5,114,727 $ 1,745,528 Interest expense on unused daily amounts 268,787 560,687 Amortization of debt issuance costs 983,745 689,930 Loss on extinguishment of line of credit 813,806 1,092,679

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Schedule of Provision for Income Taxes	The components of loss before taxes for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 United States $ (32,493,098) $ (63,143,175) International (5,531,211) (11,966,772) Total $ (38,024,309) $ (75,109,947) The components of income tax expense for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Current tax expense Federal $ — $ — Foreign — — State 69,447 58,416 Deferred tax expense Federal — — Foreign — — State — — Income tax expense $ 69,447 $ 58,416
Schedule of Deferred Tax Assets and Liabilities	The components of the net deferred tax assets and liabilities as of December 31, 2022 and December 31, 2021 are as follows: 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 25,459,247 $ 17,865,584 Allowance for uncollectible accounts 3,389,435 6,171,512 Equity based compensation 1,322,642 3,273,873 Research and experimental expenditures 216,391 — Lease liability 17,575 50,408 Startup costs 9,514 10,517 Accruals 458,609 328,154 Nondeductible interest 3,816,974 945,153 Other 365,743 290,029 Total net deferred tax assets 35,056,130 28,935,230 Valuation allowance (34,868,210) (28,842,025) Deferred tax liabilities: Depreciation and amortization (168,505) (36,457) Equity based compensation — (356) Right-of-use asset (19,415) (56,392) Total net deferred tax liabilities (187,920) (93,205) Net deferred tax asset (liability) $ — $ —
Schedule of Federal Income Tax Rate	A reconciliation of our provision for income taxes at the federal statutory rate to the reported income tax provision for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 Computed "expected" tax benefit (21.0) % (21.0) % State income tax benefit, net of federal tax effect (2.6) (2.6) Nondeductible equity based compensation 9.7 1.2 Other permanent differences (0.5) 0.3 Change in valuation allowance 15.9 23.5 Foreign rate differentials and other (1.3) (1.3) Income tax expense 0.2 % 0.1 %

Equity Based Compensation (Tabl

Equity Based Compensation (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Stock Option Activity	The following tables summarize the options issued, outstanding, and exercisable under our equity based compensation plans as of December 31, 2022 and 2021: For the year ended December 31, 2022 Number of Options Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Life Outstanding, beginning of year 21,195,768 $ 1.74 $ 23,079,520 7.76 Granted 395,313 0.73 — — Exercised (3,029,480) 0.16 2,383,405 — Canceled (7,288,982) 2.59 — — Outstanding, end of year 11,272,619 1.56 686,035 6.14 Exercisable, end of year 9,656,457 1.30 685,914 5.89 Expected to vest, end of year 1,616,162 $ 3.10 $ 121 7.61 For the year ended December 31, 2021 Number of Options Weighted Average Exercise Price Intrinsic Value Weighted Average Remaining Life Outstanding, beginning of year 24,515,544 $ 1.34 $ 84,731,639 8.65 Granted 1,922,480 6.29 — — Exercised (1,683,397) 0.71 8,329,397 — Canceled (3,558,859) 2.37 — — Outstanding, end of year 21,195,768 1.74 23,079,520 7.76 Exercisable, end of year 11,137,578 1.02 16,036,993 7.05 Expected to vest, end of year 10,058,190 $ 2.55 $ 7,042,527 8.55
Schedule of Weighted-average Assumptions used in the Black-Scholes Option Pricing Model	The following table represents the assumptions used for estimating the fair values of stock options granted to our employees, contractors, and non-employees under the Black-Scholes valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2022 2021 Risk-free interest rate 3.46%–3.91% 0.65%–1.07% Expected volatility 115.75%–116.01% 87.39%–90.89% Expected life (in years) 6.00 6.00 Weighted average estimated fair value of options granted $ 0.73 $ 4.95 The following table represents the assumptions used for estimating the fair values of stock options granted to executives for the year ended December 31, 2021 under our long-term incentive program using the Monte Carlo Simulation valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2021 Risk-free interest rate 1.62 % Expected volatility 87.40 % Expected life (in years) 5.81 Weighted average estimated fair value of options granted $ 3.06
Schedule of Restricted Stock Awards and Restricted Stock Units	Restricted stock award and restricted stock unit transactions during the years ended December 31, 2022 and 2021 are summarized as follows: For the year ended December 31, 2022 For the year ended December 31, 2021 Number of Shares Weighted Average Number of Shares Weighted Average Unvested shares, beginning of year 5,823,139 $ 4.22 2,833,743 $ 3.37 Granted 15,213,789 0.59 4,733,804 4.64 Vested (1,388,421) 3.81 (1,686,349) 4.19 Forfeited or surrendered (6,616,811) 2.74 (58,059) 6.25 Unvested shares, end of year 13,031,696 $ 0.79 5,823,139 $ 4.22
Schedule of Restricted Stock Awards and Restricted Stock Units	Restricted stock award and restricted stock unit transactions during the years ended December 31, 2022 and 2021 are summarized as follows: For the year ended December 31, 2022 For the year ended December 31, 2021 Number of Shares Weighted Average Number of Shares Weighted Average Unvested shares, beginning of year 5,823,139 $ 4.22 2,833,743 $ 3.37 Granted 15,213,789 0.59 4,733,804 4.64 Vested (1,388,421) 3.81 (1,686,349) 4.19 Forfeited or surrendered (6,616,811) 2.74 (58,059) 6.25 Unvested shares, end of year 13,031,696 $ 0.79 5,823,139 $ 4.22

Short and Long-Term Incentive_2

Short and Long-Term Incentive Plans (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Weighted-average Assumptions used in the Black-Scholes Option Pricing Model	The following table represents the assumptions used for estimating the fair values of stock options granted to our employees, contractors, and non-employees under the Black-Scholes valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2022 2021 Risk-free interest rate 3.46%–3.91% 0.65%–1.07% Expected volatility 115.75%–116.01% 87.39%–90.89% Expected life (in years) 6.00 6.00 Weighted average estimated fair value of options granted $ 0.73 $ 4.95 The following table represents the assumptions used for estimating the fair values of stock options granted to executives for the year ended December 31, 2021 under our long-term incentive program using the Monte Carlo Simulation valuation model. The risk-free interest rate is based on the U.S. Treasury yield curve in effect on the grant date: 2021 Risk-free interest rate 1.62 % Expected volatility 87.40 % Expected life (in years) 5.81 Weighted average estimated fair value of options granted $ 3.06

Principal Business Activity a_4

Principal Business Activity and Significant Accounting Policies - Narrative (Details)	12 Months Ended
	Dec. 31, 2022 USD ($) installment	Dec. 31, 2021 USD ($)
Disaggregation of Revenue [Line Items]
Typical number of installments under the consumer installment payment plans | installment	4
Restricted cash, non-current	$ 20,000	$ 20,000
Interest-free period	42 days
Installment period	14 days
Typical settlement period from initiation of transaction with third parties	3 days
Reactivation fee waiver period	2 days
Capitalization threshold	$ 1,000
Research and development in process	2,012,000	1,462,000
Impairment losses	0	0
Advertising costs	18,476,899	8,569,276
Fair value of warrant liabilities	511,295	0
Gains (losses) from foreign exchange rate fluctuations	(118,831)	(69,228)
Foreign currency translation adjustment	(1,207,885)	69,406
Level 1
Disaggregation of Revenue [Line Items]
Fair value of warrant liabilities	511,295
Money Market Securities | Level 1
Disaggregation of Revenue [Line Items]
Money market securities	$ 333,158	$ 6,408,389

Principal Business Activity a_5

Principal Business Activity and Significant Accounting Policies - Schedule of Property and Equipment, Net (Details)	12 Months Ended
	Dec. 31, 2022
Computers and computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, useful life (in years)	3 years
Office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, useful life (in years)	5 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, useful life (in years)	7 years

Principal Business Activity a_6

Principal Business Activity and Significant Accounting Policies - Finite-lived Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2022
Internal use software
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	3 years
Website development costs
Finite-Lived Intangible Assets [Line Items]
Acquired finite-lived intangible assets, weighted average useful life	3 years

Total Income - Narratives (Deta

Total Income - Narratives (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Total income	$ 125,570,441	$ 114,816,635
Total income do not fall under the ASC topic 310	11,959,044	206,860
Deferred income	4,068,332	5,240,919
Outstanding performance obligation, amount	$ 1,516,228	$ 0
Revenue Benchmark | Supplier Concentration Risk | One Merchant
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	14%

Total Income - Disaggregation o

Total Income - Disaggregation of Revenue (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Disaggregation of Revenue [Line Items]
Total income	$ 125,570,441	$ 114,816,635
Transaction income
Disaggregation of Revenue [Line Items]
Total income	102,599,194	93,498,598
Income from other services
Disaggregation of Revenue [Line Items]
Total income	$ 22,971,247	$ 21,318,037

Notes Receivable - Schedule of

Notes Receivable - Schedule of Notes Receivable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Notes receivable, gross	$ 107,650,187	$ 162,341,675
Less allowance for uncollectible accounts:
Balance at beginning of year	(23,114,173)	(11,133,146)
Provision	(29,437,179)	(52,621,682)
Charge-offs, net of recoveries totaling $5,040,041 and $6,153,728, respectively	42,327,901	40,640,655
Recoveries	5,040,041	6,153,728
Total allowance for uncollectible accounts	(10,223,451)	(23,114,173)
Notes receivable, net of allowance	97,426,736	139,227,502
Deferred transaction income	(4,068,332)	(5,240,919)
Notes receivable, net	$ 93,358,404	$ 133,986,583

Notes Receivable - Aging (Detai

Notes Receivable - Aging (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Past Due [Line Items]
Weighted average days outstanding of notes receivable	34 days
Notes receivable, gross	$ 107,650,187	$ 162,341,675
Less Allowance	(10,223,451)	(23,114,173)	$ (11,133,146)
Notes receivable, net of allowance	97,426,736	139,227,502
Current
Financing Receivable, Past Due [Line Items]
Notes receivable, gross	96,923,113	139,024,393
Less Allowance	(3,348,558)	(7,989,217)
Notes receivable, net of allowance	93,574,555	131,035,176
1–28
Financing Receivable, Past Due [Line Items]
Notes receivable, gross	5,516,812	12,263,154
Less Allowance	(2,146,103)	(5,126,611)
Notes receivable, net of allowance	3,370,709	7,136,543
29–56
Financing Receivable, Past Due [Line Items]
Notes receivable, gross	2,513,755	5,266,164
Less Allowance	(2,063,131)	(4,267,236)
Notes receivable, net of allowance	450,624	998,928
57–90
Financing Receivable, Past Due [Line Items]
Notes receivable, gross	2,696,507	5,787,964
Less Allowance	(2,665,659)	(5,731,109)
Notes receivable, net of allowance	$ 30,848	$ 56,855

Other Receivables - Schedule of

Other Receivables - Schedule of Other Receivables, Net (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, net	$ 2,532,710	$ 5,084,099
Less allowance for uncollectible accounts:
Provision	(9,257,284)	(7,349,852)
Recoveries	1,252,437	1,273,319
Other receivables, net	2,532,710	5,084,099
Account reactivation fees receivable, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, net	209,734	1,325,443
Account reactivation fees receivable, gross	1,190,447	3,016,514
Less allowance for uncollectible accounts:
Balance at start of period	(1,691,071)	(1,071,588)
Provision	(7,588,253)	(6,128,851)
Charge-offs, net of recoveries totaling $1,252,437 and $1,273,319, respectively	8,298,611	5,509,368
Total allowance for uncollectible accounts	(980,713)	(1,691,071)
Other receivables, net	209,734	1,325,443
Receivables from merchants, net
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, net	2,322,976	3,758,656
Less allowance for uncollectible accounts:
Other receivables, net	$ 2,322,976	$ 3,758,656

Other Receivables - Narrative (

Other Receivables - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, net	$ 2,532,710	$ 5,084,099
Settled Merchant Fees Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, net	2,177,028	3,738,765
Other Uncollectible Receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other receivables, net	145,948	19,891
Provision for uncollectible receivables from merchants	$ 1,669,031	$ 1,221,001

Merchant Accounts Payable (Deta

Merchant Accounts Payable (Details)	12 Months Ended
	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)	Aug. 01, 2022
Payables and Accruals [Line Items]
Merchant accounts payable	$ 83,020,739	$ 96,516,668
Net interest expense	8,600,716	5,269,284
Merchant Interest Program
Payables and Accruals [Line Items]
Merchant accounts payable	$ 66,469,982	$ 78,097,910
Spread on fixed rate (as percent)			0.038
Spread on variable rate (percent)			3%
Weighted average yield (percent)	3.56%	3.22%
Net interest expense	$ 2,484,997	$ 2,314,770
Deferred payments due on demand (maximum 7 days)	$ 250,000

Internally Developed Intangib_3

Internally Developed Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Internally developed intangible assets, gross	$ 2,550,420	$ 1,657,637
Less accumulated amortization	(1,227,584)	(747,053)
Internally developed intangible assets, net	1,322,836	910,584
Amortization expense	$ 503,907	$ 355,043

Long Term Debt (Details)

Long Term Debt (Details) - USD ($)			12 Months Ended
	Jun. 24, 2021	Jul. 26, 2018	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Payment of accrued interest			$ 7,790,430	$ 4,819,604
Minnesota Department of Employment and Economic Development (DEED) Seven -Year Loan | Interest-free loans
Debt Instrument [Line Items]
Proceeds from issuance of debt		$ 250,000
Term of facility from the agreement date (in years)		7 years
Transferred ownership interest threshold (as percent)		50%
Penalty as a percentage of original loan amount (as percent)		30%
U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP) Loan | Uncollateralized Forgivable Loan
Debt Instrument [Line Items]
Repayments of loan principal	$ 1,220,332
Payment of accrued interest	$ 14,779

Line of Credit - Narrative (Det

Line of Credit - Narrative (Details)

3 Months Ended

5 Months Ended

7 Months Ended

12 Months Ended

37 Months Ended

Oct. 14, 2022 USD ($)

Jul. 31, 2022 USD ($)

Jan. 01, 2022

Feb. 10, 2021 USD ($)

May 11, 2021

Sep. 30, 2021

Jul. 30, 2022

Dec. 31, 2022 USD ($)

Dec. 31, 2021 USD ($)

Dec. 31, 2022 USD ($)

Mar. 31, 2023 USD ($)

Mar. 30, 2023 USD ($)

Dec. 30, 2022 USD ($)

Debt Instrument [Line Items]

Notes receivable, gross

$ 107,650,187

$ 162,341,675

$ 107,650,187

Notes receivable, net

93,358,404

133,986,583

93,358,404

Debt issuance costs, net

1,330,901

1,697,705

Termination fee paid to exit previous loan

600,307

1,000,000

Receivables Funding Facility | Line of Credit

Debt Instrument [Line Items]

Outstanding line of credit balance

65,000,000

78,800,000

65,000,000

Unused borrowing capacity

$ 477,606

29,771,561

$ 477,606

Weighted average interest rate (as percent)

16.07%

16.07%

Funding facility

$ 250,000,000

Borrowings as a percentage of eligible notes receivables pledged (as percent)

75%

90%

Unused facility fee (as percent)

0.50%

0.50%

Prepayment exit fee (as percent)

0.75%

Debt issuance costs

$ 1,330,901

$ 1,330,901

Receivables Funding Facility | Line of Credit | Less Than One-third

Debt Instrument [Line Items]

Unused facility fee (as percent)

0.65%

Receivables Funding Facility | Line of Credit | Between One-third and Two-thirds

Debt Instrument [Line Items]

Unused facility fee (as percent)

0.50%

Receivables Funding Facility | Line of Credit | Between One-third and Two-thirds | Minimum

Debt Instrument [Line Items]

Unused capacity of the Facility (as percent)

33.33%

33.33%

Receivables Funding Facility | Line of Credit | Between One-third and Two-thirds | Maximum

Debt Instrument [Line Items]

Unused capacity of the Facility (as percent)

66.67%

66.67%

Receivables Funding Facility | Line of Credit | More Than Two-thirds

Debt Instrument [Line Items]

Unused facility fee (as percent)

0.35%

Receivables Funding Facility | Line of Credit | Class A Senior Lender | LIBOR

Debt Instrument [Line Items]

Spread on variable rate (as percent)

3.375%

Receivables Funding Facility | Line of Credit | Class A Senior Lender | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate

Debt Instrument [Line Items]

Spread on variable rate (as percent)

3.375%

LIBOR floor rate (as percent)

0.25%

Receivables Funding Facility | Line of Credit | Class B Mezzanine Lender | LIBOR

Debt Instrument [Line Items]

Spread on variable rate (as percent)

10.689%

LIBOR floor rate (as percent)

0.25%

Receivables Funding Facility | Line of Credit | Class B Mezzanine Lender | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate

Debt Instrument [Line Items]

Spread on variable rate (as percent)

10.689%

Receivables Funding Facility | Line of Credit | FICO Score Less Than 580

Debt Instrument [Line Items]

Borrowings as a percentage of eligible notes receivables pledged (as percent)

85%

Receivables Funding Facility | Line of Credit | Notes receivable pledged

Debt Instrument [Line Items]

Notes receivable, gross

$ 89,797,068

149,203,705

$ 89,797,068

Notes receivable, net

$ 84,980,543

$ 136,268,535

84,980,543

Loan And Security Agreement | Line of Credit

Debt Instrument [Line Items]

Line of credit facility, interest rate

5.25%

Debt issuance costs, net

$ 1,697,705

Previous Line of Credit | Line of Credit

Debt Instrument [Line Items]

Termination fee paid to exit previous loan

$ 100,000,000

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit

Debt Instrument [Line Items]

Interest collection period

14 days

Minimum outstanding balance required

$ 50,000,000

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit | Expected

Debt Instrument [Line Items]

Minimum outstanding balance required

$ 80,000,000

$ 75,000,000

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit | LIBOR

Debt Instrument [Line Items]

Spread on variable rate (as percent)

0.262%

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate

Debt Instrument [Line Items]

Borrowing percentage as base rate (as percent)

1%

Spread on variable rate (as percent)

11.50%

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit | Class A Senior Lender

Debt Instrument [Line Items]

Funding facility

$ 64,287,184

Borrowing percentage as base rate (as percent)

0.70

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit | Class A Senior Lender | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate

Debt Instrument [Line Items]

Spread on variable rate (as percent)

4.375%

Bastion Funding IV, LLC Revolving Credit Facility | Line of Credit | Class B Mezzanine Lender | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate

Debt Instrument [Line Items]

Spread on variable rate (as percent)

11.689%

Line of Credit - Schedule of Ex

Line of Credit - Schedule of Expenses Related to Line of Credit (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Interest expense on utilization	$ 8,600,716	$ 5,269,284
Amortization of debt issuance costs	983,745	689,930
Loss on extinguishment of line of credit	813,806	1,092,679
Line of Credit
Debt Instrument [Line Items]
Interest expense on utilization	5,114,727	1,745,528
Interest expense on unused daily amounts	268,787	560,687
Amortization of debt issuance costs	983,745	689,930
Loss on extinguishment of line of credit	$ 813,806	$ 1,092,679

Warrant Obligations (Details)

Warrant Obligations (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares	Dec. 31, 2021 USD ($)	Oct. 14, 2022 $ / shares shares
Class of Warrant or Right [Line Items]
Fair value of warrant liabilities	$ 511,295	$ 511,295	$ 0
Fair value of warrant liabilities		$ (50,424)	$ 0
Class B Mezzanine Lender | Line of Credit
Class of Warrant or Right [Line Items]
Term of the credit agreement				2 years
Class B Mezzanine Lender | Warrant
Class of Warrant or Right [Line Items]
Warrants issued to purchase of shares (in shares) | shares				2,075,064
Exercise price (in usd per share) | (per share)	$ 0.33	$ 0.33		$ 0.49
Amount of commitment asset	$ 561,719	$ 561,719
Other Assets, Fair Value Disclosure	$ 501,783	$ 501,783
Risk-free interest rate (in percent)		3.88%
Expected volatility rate (in percent)		115%
Expected term (in years)		6 years 9 months 18 days
Fair value of options (in USD per share) | $ / shares	$ 0.25	$ 0.25
Fair value of warrant liabilities	$ 511,295	$ 511,295
Warrants exercised (in shares) | shares	0
Warrants cancelled (in shares) | shares	0
Fair value of warrant liabilities		$ (50,424)

Income Taxes - Schedule of Comp

Income Taxes - Schedule of Components of Loss Before Tax (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
United States	$ (32,493,098)	$ (63,143,175)
International	(5,531,211)	(11,966,772)
Loss before taxes	$ (38,024,309)	$ (75,109,947)

Income Taxes - Schedule of Prov

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Current tax expense
Federal	$ 0	$ 0
Foreign	0	0
State	69,447	58,416
Deferred tax expense
Federal	0	0
Foreign	0	0
State	0	0
Income tax expense	$ 69,447	$ 58,416

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Deferred tax assets:
Net operating loss carryforwards	$ 25,459,247	$ 17,865,584
Allowance for uncollectible accounts	3,389,435	6,171,512
Equity based compensation	1,322,642	3,273,873
Research and experimental expenditures	216,391	0
Lease liability	17,575	50,408
Startup costs	9,514	10,517
Accruals	458,609	328,154
Nondeductible interest	3,816,974	945,153
Other	365,743	290,029
Total net deferred tax assets	35,056,130	28,935,230
Valuation allowance	(34,868,210)	(28,842,025)
Deferred tax liabilities:
Depreciation and amortization	(168,505)	(36,457)
Equity based compensation	0	(356)
Right-of-use asset	(19,415)	(56,392)
Total net deferred tax liabilities	(187,920)	(93,205)
Net deferred tax asset (liability)	$ 0	$ 0

Income Taxes - Schedule of Fede

Income Taxes - Schedule of Federal Income Tax Rate (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Computed "expected" tax benefit	(21.00%)	(21.00%)
State income tax benefit, net of federal tax effect	(2.60%)	(2.60%)
Nondeductible equity based compensation	9.70%	1.20%
Other permanent differences	(0.50%)	0.30%
Change in valuation allowance	15.90%	23.50%
Foreign rate differentials and other	(1.30%)	(1.30%)
Income tax expense	0.20%	0.10%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Operating Loss Carryforwards [Line Items]
Operating losses carryforward term (in years)	15 years
Valuation allowance	$ 34,868,210	$ 28,842,025
Valuation allowance, deferred tax asset, increase (decrease), amount	6,026,000	$ 17,615,000
Accrued interest and penalties	0
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	84,234,000
State
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	48,087,000
Foreign
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	$ 19,120,000

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Other Commitments [Line Items]
Marketing and advertising spend commitment	$ 6,100,000	$ 6,700,000
Term of agreement, up to (in years)	2 years
Marketing, advertising, and tradeshows	$ 18,972,025	9,251,854
Co-Branded Advertising Spend
Other Commitments [Line Items]
Marketing and advertising spend commitment	19,400,000	35,100,000
Co-Branded Marketing and Advertising Spend
Other Commitments [Line Items]
Marketing, advertising, and tradeshows	$ 17,023,522	$ 6,496,361

Stockholders_ Equity (Details)

Stockholders’ Equity (Details)		12 Months Ended
	Jul. 19, 2021 USD ($) $ / shares	Dec. 31, 2022 USD ($) shares	Dec. 31, 2021 USD ($) shares	Jul. 19, 2021 $ / shares
Class of Stock [Line Items]
Treasury stock at cost (in shares) | shares		1,088,236	660,118
Treasury stock, value		$ 4,072,752	$ 3,691,322
Payments of issuance of cost		$ 0	$ 2,768
Common Stock | Discover
Class of Stock [Line Items]
Shares price (in usd per share) | (per share)	$ 6.58			$ 8.83
Sale of stock, consideration received per transaction	$ 30,000,000
Payments of issuance of cost	$ 2,768

Equity Based Compensation - Nar

Equity Based Compensation - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expense recognized	$ 10,309,535	$ 14,161,754
Options issued and outstanding (in shares)	11,272,619	21,195,768	24,515,544
Stock option exercises (in shares)	3,029,480	1,683,397
Compensation cost related, cost not yet recognized	$ 9,984,655	$ 27,266,222
Expected weighted average period (in years)	2 years	2 years 8 months 12 days
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
2016 Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized (in shares)	10,000,000
Options issued and outstanding (in shares)	2,946,077	5,659,017
Stock option exercises (in shares)	2,658,774	889,320
Common stock issued (in shares)	2,633,551	888,815
2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized (in shares)	26,000,000
Options issued and outstanding (in shares)	8,092,375	15,102,771
Stock option exercises (in shares)	457,552	835,684
Common stock issued (in shares)	395,929	794,582
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized (in shares)	33,169,237
Options issued and outstanding (in shares)	234,167	433,980
Stock option exercises (in shares)	0	0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock issuances and vesting of awards (in shares)	38,888	116,668
Restricted Stock | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	1 year	1 year
Restricted Stock | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years	4 years
Restricted Stock | 2016 Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additionally options issued and outstanding (in shares)	0	38,888
Restricted Stock | 2019 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additionally options issued and outstanding (in shares)	200,625	1,467,292
Restricted Stock | 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Additionally options issued and outstanding (in shares)	12,831,071	4,316,959
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	15,213,789	4,733,804
Restricted stock issuances and vesting of awards (in shares)	1,349,533	1,569,681
Weighted average fair value of grants (in dollars per share)	$ 0.59	$ 4.64
Weighted average fair value	$ 8,976,136	$ 21,964,851
Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option exercises (in shares)	1,685,730	1,486,341
Restricted stock issuances and vesting of awards (in shares)	1,349,533	1,569,681
Common Stock | 2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued (in shares)	0	0

Equity Based Compensation - Sch

Equity Based Compensation - Schedule of Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Number of Options
Number of options, beginning balance (in shares)	21,195,768	24,515,544
Number of options, granted (in shares)	395,313	1,922,480
Number of options, exercised (in shares)	(3,029,480)	(1,683,397)
Number of options, canceled (in shares)	(7,288,982)	(3,558,859)
Number of options, ending balance (in shares)	11,272,619	21,195,768	24,515,544
Number of options, exercisable (in shares)	9,656,457	11,137,578
Number of option expected to vest (in shares)	1,616,162	10,058,190
Weighted Average Exercise Price
Weighted average exercise price, beginning balance (in dollars per share)	$ 1.74	$ 1.34
Weighted average exercise price, granted (in dollars per share)	0.73	6.29
Weighted average exercise price, exercised (in dollars per share)	0.16	0.71
Weighted average exercise price, canceled (in dollars per share)	2.59	2.37
Weighted average exercise price, ending balance (in dollars per share)	1.56	1.74	$ 1.34
Weighted average exercise price, exercisable (in dollars per share)	1.30	1.02
Weighted average exercise price, expected to vest (in dollars per share)	$ 3.10	$ 2.55
Intrinsic Value
Intrinsic value, beginning balance	$ 23,079,520	$ 84,731,639
Intrinsic value, exercised	2,383,405	8,329,397
Intrinsic value, ending balance	686,035	23,079,520	$ 84,731,639
Intrinsic value, exercisable	685,914	16,036,993
Intrinsic value, expected to vest	$ 121	$ 7,042,527
Weighted Average Remaining Life
Weighted average remaining life, term	6 years 1 month 20 days	7 years 9 months 3 days	8 years 7 months 24 days
Weighted average remaining life, exercisable	5 years 10 months 20 days	7 years 18 days
Weighted average remaining contractual term	7 years 7 months 9 days	8 years 6 months 18 days

Equity Based Compensation - S_2

Equity Based Compensation - Schedule of Weighted-average Assumptions Used in the Black-Scholes Option Pricing Model (Details) - $ / shares		12 Months Ended
	Mar. 12, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options (in USD per share)	$ 3.06
Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options (in USD per share)		$ 0.73	$ 4.95
Stock Options | Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum (in percent)		3.46%	0.65%
Risk-free interest rate, maximum (in percent)		3.91%	1.07%
Expected volatility rate, minimum (in percent)		115.75%	87.39%
Expected volatility rate, maximum (in percent)		116.01%	90.89%
Expected term (in years)		6 years	6 years

Equity Based Compensation - S_3

Equity Based Compensation - Schedule of Restricted Stock Awards and Restricted Stock Units (Details) - Restricted Stock And Restricted Stock Units - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Number of Shares
Unvested, beginning balance (in shares)	5,823,139	2,833,743
Granted (in shares)	15,213,789	4,733,804
Vested (in shares)	(1,388,421)	(1,686,349)
Forfeited or surrendered (in shares)	(6,616,811)	(58,059)
Unvested, ending balance (in shares)	13,031,696	5,823,139
Weighted Average Grant Date Fair Value
Unvested, beginning balance (in dollars per share)	$ 4.22	$ 3.37
Granted (in dollars per share)	0.59	4.64
Vested (in dollars per share)	3.81	4.19
Forfeited or surrendered (in dollars per share)	2.74	6.25
Unvested, ending balance (in dollars per share)	$ 0.79	$ 4.22

Short and Long-Term Incentive_3

Short and Long-Term Incentive Plans - Narrative (Details)			12 Months Ended
	Mar. 12, 2021 $ / shares	Mar. 12, 2021 $ / shares	Dec. 31, 2022 USD ($)	Dec. 31, 2021 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of grants as a percentage of salary (percent)	200%	200%
Fair value of options (in USD per share) | $ / shares	$ 3.06
Exercise price (in A$ per share) | $ / shares		$ 8
Conversion of liability-classified incentive awards to stockholders' equity			$ 8,580,123	$ 8,580,123
Expense recognized			10,309,535	14,161,754
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accruals			0
Restricted Stock Units | 2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Accruals				1,996,779
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shareholder total return testing period (in years)	2 years	2 years
Expense recognized			1,070,543	$ 4,269,967
Expense reversal for amount of awards forfeited prior to vesting			$ (1,244,999)

Short and Long-Term Incentive_4

Short and Long-Term Incentive Plans - Schedule of Weighted-average Assumptions Used in the Black-Scholes Option Pricing Model (Details) - $ / shares		12 Months Ended
	Mar. 12, 2021	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of options (in USD per share)	$ 3.06
Stock Options | Long Term Incentive Plan (LTIP)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (in percent)		1.62%
Expected volatility rate (in percent)		87.40%
Expected term (in years)		5 years 9 months 21 days
Fair value of options (in USD per share)		$ 3.06

Employee Benefit Plan (Details)

Employee Benefit Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Retirement Benefits [Abstract]
Employee contributions under both plan percentage	6%
Noncash contribution expense	$ 1,455,004	$ 588,612

Reimbursement of Merger-Relat_2

Reimbursement of Merger-Related Costs (Details)	Jul. 11, 2022 USD ($)
Business Combination and Asset Acquisition [Abstract]
Proceeds From Termination Of Business Acquisition	$ 11,000,000