Katapult (KPLT) 10-Q 6 Nov 24 2024 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2024	Nov. 01, 2024
Entity Listings [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-39116
Entity Registrant Name	Katapult Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2704291
Entity Address, Address Line One	5360 Legacy Drive, Building 2
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75024
City Area Code	833
Local Phone Number	528-2785
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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,390,519
Amendment Flag	false
Entity Central Index Key	0001785424
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Common Stock, par value $0.0001 per share
Entity Listings [Line Items]
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	KPLT
Security Exchange Name	NASDAQ
Redeemable Warrants
Entity Listings [Line Items]
Title of 12(b) Security	Redeemable Warrants
Trading Symbol	KPLTW
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 25,877	$ 21,408
Restricted cash	4,416	7,403
Property held for lease, net of accumulated depreciation and impairment (Note 4)	54,823	59,335
Prepaid expenses and other current assets	4,430	4,491
Litigation insurance reimbursement receivable (Note 10)	0	5,000
Total current assets	89,546	97,637
Property and equipment, net	265	327
Capitalized software and intangible assets, net	1,706	1,919
Right-of-use assets, non-current	367	888
Security deposits	91	91
Total assets	91,975	100,862
Current liabilities:
Accounts payable	912	903
Accrued liabilities (Note 5)	23,257	24,146
Accrued litigation settlement (Note 10)	5,805	12,000
Unearned revenue	4,882	4,949
Revolving line of credit, net (Note 6)	67,106	0
Term loan, net, current (Note 6)	28,781	0
Lease liabilities	256	297
Total current liabilities	130,999	42,295
Revolving line of credit, net (Note 6)	0	60,347
Term loan, net, non-current (Note 6)	0	25,503
Lease liabilities, non-current	416	614
Other liabilities	823	95
Total liabilities	132,238	128,854
STOCKHOLDERS' DEFICIT
Common stock, $.0001 par value-- 250,000,000 shares authorized; 4,222,722 and 4,072,713 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively	0	0
Additional paid-in capital	98,619	94,544
Accumulated deficit	(138,882)	(122,536)
Total stockholders' deficit	(40,263)	(27,992)
Total liabilities and stockholders' deficit	$ 91,975	$ 100,862

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	4,222,722	4,072,713
Common stock, shares outstanding (in shares)	4,222,722	4,072,713

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenue
Rental revenue	$ 59,609	$ 54,042	$ 181,947	$ 161,612
Other revenue	698	769	2,284	2,418
Total revenue	60,307	54,811	184,231	164,030
Cost of revenue	48,358	43,342	145,866	131,224
Gross profit	11,949	11,469	38,365	32,806
Operating expenses	16,396	11,909	41,633	40,953
Loss from operations	(4,447)	(440)	(3,268)	(8,147)
Loss on partial extinguishment of debt	0	0	0	(2,391)
Interest expense and other fees	(4,801)	(4,264)	(14,002)	(13,551)
Interest income	332	287	1,015	1,334
Change in fair value of warrant liability	75	382	22	771
Loss before income taxes	(8,841)	(4,035)	(16,233)	(21,984)
Provision for income taxes	(47)	(19)	(113)	(53)
Net loss	$ (8,888)	$ (4,054)	$ (16,346)	$ (22,037)
Weighted average common shares outstanding - basic (in shares)	4,341,000	4,130,000	4,289,000	4,059,000
Weighted average common shares outstanding - diluted (in shares)	4,341,000	4,130,000	4,289,000	4,059,000
Net loss per common share - basic (in dollars per share)	$ (2.05)	$ (0.98)	$ (3.81)	$ (5.43)
Net loss per common share - diluted (in dollars per share)	$ (2.05)	$ (0.98)	$ (3.81)	$ (5.43)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2022		3,944,000
Beginning balance at Dec. 31, 2022	$ (2,066)	$ 0	$ 83,804	$ (85,870)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(22,037)			(22,037)
Issuance of warrants in connection with Credit Agreement amendment	4,060		4,060
Vesting of restricted stock units (in shares)		105,000
Repurchase of restricted stock for payroll tax withholding (in shares)		(20,000)
Repurchases of restricted stock for payroll tax withholding	(318)		(318)
Stock-based compensation expense	5,678		5,678
Adjustment due to the rounding impact from the Reverse Stock Split in lieu of issuing fractional shares (in shares)		36,000
Ending balance (in shares) at Sep. 30, 2023		4,065,000
Ending balance at Sep. 30, 2023	(14,683)	$ 0	93,224	(107,907)
Beginning balance (in shares) at Jun. 30, 2023		4,021,000
Beginning balance at Jun. 30, 2023	(11,933)	$ 0	91,920	(103,853)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(4,054)			(4,054)
Vesting of restricted stock units (in shares)		12,000
Repurchase of restricted stock for payroll tax withholding (in shares)		(4,000)
Repurchases of restricted stock for payroll tax withholding	(71)		(71)
Stock-based compensation expense	1,375		1,375
Adjustment due to the rounding impact from the Reverse Stock Split in lieu of issuing fractional shares (in shares)		36,000
Ending balance (in shares) at Sep. 30, 2023		4,065,000
Ending balance at Sep. 30, 2023	$ (14,683)	$ 0	93,224	(107,907)
Beginning balance (in shares) at Dec. 31, 2023	4,072,713	4,073,000
Beginning balance at Dec. 31, 2023	$ (27,992)	$ 0	94,544	(122,536)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(16,346)			(16,346)
Stock options exercised (in shares)		45,000
Stock options exercised	209		209
Vesting of restricted stock units (in shares)		143,000
Repurchase of restricted stock for payroll tax withholding (in shares)		(38,000)
Repurchases of restricted stock for payroll tax withholding	(562)		(562)
Stock-based compensation expense	$ 4,428		4,428
Ending balance (in shares) at Sep. 30, 2024	4,222,722	4,223,000
Ending balance at Sep. 30, 2024	$ (40,263)	$ 0	98,619	(138,882)
Beginning balance (in shares) at Jun. 30, 2024		4,169,000
Beginning balance at Jun. 30, 2024	(32,946)	$ 0	97,048	(129,994)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(8,888)			(8,888)
Stock options exercised (in shares)		41,000
Stock options exercised	191		191
Vesting of restricted stock units (in shares)		21,000
Repurchase of restricted stock for payroll tax withholding (in shares)		(8,000)
Repurchases of restricted stock for payroll tax withholding	(105)		(105)
Stock-based compensation expense	$ 1,485		1,485
Ending balance (in shares) at Sep. 30, 2024	4,222,722	4,223,000
Ending balance at Sep. 30, 2024	$ (40,263)	$ 0	$ 98,619	$ (138,882)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (16,346)	$ (22,037)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	102,731	92,334
Net book value of property held for lease buyouts	21,505	19,365
Impairment on property held for lease expense	17,021	15,494
Change in fair value of warrants and other	33	(771)
Stock-based compensation	4,428	5,678
Loss on partial extinguishment of debt	0	2,391
Amortization of debt discount	2,222	2,147
Amortization of debt issuance costs, net	198	211
Accrued PIK Interest	1,056	1,208
Amortization of right-of-use assets	521	274
Increase (decrease) to cash due to changes in:
Property held for lease	(135,814)	(128,464)
Prepaid expenses and other current assets	61	3,125
Litigation insurance reimbursement receivable	5,000	0
Accounts payable	9	(529)
Accrued liabilities	(889)	1,594
Accrued litigation settlement	(5,500)	0
Lease liabilities	(239)	(312)
Unearned revenues	(67)	572
Net cash used in operating activities	(4,070)	(7,720)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(36)	(10)
Additions to capitalized software	(620)	(753)
Net cash used in investing activities	(656)	(763)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from revolving line of credit	16,100	10,916
Principal repayments on revolving line of credit	(9,539)	(8,054)
Principal repayment on term loan	0	(25,000)
Payments of deferred financing costs	0	(34)
Repurchases of restricted stock	(562)	(318)
Proceeds from exercise of stock options	209	0
Net cash provided by (used in) financing activities	6,208	(22,490)
Net increase (decrease) in cash, cash equivalents and restricted cash	1,482	(30,973)
Cash, cash equivalents and restricted cash at beginning of period	28,811	69,841
Cash, cash equivalents and restricted cash at end of period	30,293	38,868
Supplemental disclosure of cash flow information:
Cash paid for interest	10,372	9,821
Cash paid for income taxes	270	146
Deferred financing costs included in accrued liabilities	0	481
Issuance of warrants to purchase common stock in connection with debt refinancing	0	4,060
Cash paid for operating leases	$ 275	$ 390

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Business— Katapult Holdings, Inc. (“Katapult” or the “Company”) is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through the Company’s point-of-sale (“POS”) integrations and innovative mobile app featuring Katapult Pay, consumers who may be unable to access traditional financing can shop a growing network of merchant partners. The Company experiences moderate seasonal fluctuations in our revenue as a result of consumer spending patterns. Historically, our revenue is strongest during the first quarter primarily due to higher gross originations during the fourth quarter holiday season. Our first quarter revenue is also impacted by the federal and state income tax refunds that our customers receive, which in the past, has led to our customers more frequently exercising the early purchase option on their lease agreements. Adverse events that occur could have a disproportionate effect on our financial results throughout the year. Subsidiaries— The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Katapult Intermediate Holdings, LLC (formerly known as Keys Merger Sub 2, LLC), Katapult Group, Inc. and Katapult SPV-1 LLC, which originates all of the Company’s leases. Katapult was incorporated in Delaware in 2016 and changed its headquarters from New York, New York to Plano, Texas in December 2020. Katapult Group, Inc. was incorporated in the state of Delaware in 2012. Katapult SPV-1 LLC is a Delaware limited liability company formed in Delaware in 2019. Basis of Presentation

Restatement of Previously Issue

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	RESTATEMENT OF PREVIOUSLY ISSUED UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS As described in Notes 2 and 16 to the Consolidated Financial Statements included within Part II, Item 8 contained on Form 10-K for the fiscal year ended December 31, 2023, the Company restated its consolidated financial statements as of and for the year ended December 31, 2022 and the unaudited interim condensed consolidated financial statements for each of interim periods within the year ended December 31, 2023. Description of Restatement Errors The errors identified as of and for the three and nine months ended September 30, 2023 are as follows: a. Rental revenue - The Company determined that it miscalculated sales tax payable related to certain customer lease payments going back multiple years. The Company performed an assessment of its sales tax liability across all jurisdictions for potential additional exposure and determined that there was an overstatement of rental revenue and an understatement of sales tax payable included in accrued liabilities. The impact to the condensed consolidated financial statements is as follows: i. Rental revenues decreased $0.4 million and $1.5 million for the three and nine months ended September 30, 2023, respectively, within the condensed consolidated statements of operations and comprehensive loss. ii. Sales tax payable increased $6.5 million as of September 30, 2023 which is included in accrued liabilities in the condensed consolidated balance sheet. b. Cost of revenue - Correction to depreciation expense of $0.9 million and $2.7 million for the three and nine months ended September 30, 2023 related to property held for lease, net of accumulated depreciation and impairment, included in cost of revenue, for certain leases originated on or before September 30, 2023. The impact to the balance sheet as of September 30, 2023 to correct this error is a decrease to property held for lease, net of accumulated depreciation and impairment of $2.5 million and a decrease to prepaid expenses and other current assets of $0.2 million. c. Unearned revenue - Correction to increase unearned revenue $2.6 million as of September 30, 2023 in our condensed consolidated balance sheet. d. Stockholders’ deficit - The impact to the unaudited interim condensed consolidated statement of stockholders’ deficit as of September 30, 2023 is an increase to accumulated deficit of $12.8 million. e. Other errors - There are other errors not described in items (a), (b) or (c) of this note. These errors and related restatement adjustments were not material for the three and nine months ended September 30, 2023. The following tables present a reconciliation of the as-previously-reported condensed consolidated financial statements to the restated amounts as of and for the three and nine months ended September 30, 2023 which include the following: (1) as restated condensed consolidated balance sheet, (2) as restated condensed consolidated statement of operations and comprehensive loss and (3) as restated condensed consolidated statement of cash flows. Presented below are the changes to each financial statement line item which changed as a result of the restatement. Condensed Consolidated Balance Sheet As of September 30, 2023 As Previously Reported Restatement Adjustments As Restated Property held for lease, net of accumulated depreciation and impairment $ 53,581 $ (1,911) $ 51,670 Prepaid expenses and other current assets $ 6,777 $ (1,801) $ 4,976 Total current assets $ 99,227 $ (3,712) $ 95,515 Total assets $ 102,303 $ (3,712) $ 98,591 Accrued liabilities $ 15,747 $ 6,451 $ 22,198 Unearned revenue $ 2,124 $ 2,631 $ 4,755 Total current liabilities $ 18,903 $ 9,082 $ 27,985 Total liabilities $ 104,192 $ 9,082 $ 113,274 Accumulated deficit $ (95,114) $ (12,794) $ (107,908) Total stockholders' deficit $ (1,889) $ (12,794) $ (14,683) Total liabilities and stockholders' deficit $ 102,303 $ (3,712) $ 98,591 Condensed Consolidated Statement of Operations and Comprehensive Loss Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 As Previously Reported Restatement Adjustments As Restated As Previously Reported Restatement Adjustments As Restated Rental revenue $ 54,481 $ (439) $ 54,042 $ 163,079 $ (1,467) $ 161,612 Total revenue $ 55,250 $ (439) $ 54,811 $ 165,497 $ (1,467) $ 164,030 Cost of revenue $ 42,439 $ 903 $ 43,342 $ 128,486 $ 2,738 $ 131,224 Gross profit $ 12,811 $ (1,342) $ 11,469 $ 37,011 $ (4,205) $ 32,806 Total operating expenses $ 12,111 $ (202) $ 11,909 $ 41,559 $ (606) $ 40,953 Loss from operations $ 700 $ (1,140) $ (440) $ (4,548) $ (3,599) $ (8,147) Loss before income taxes $ (2,895) $ (1,140) $ (4,035) $ (18,385) $ (3,599) $ (21,984) Net loss $ (2,914) $ (1,140) $ (4,054) $ (18,438) $ (3,599) $ (22,037) Net loss per common share - basic and diluted $ (0.71) $ (0.28) $ (0.98) $ (4.54) $ (0.89) $ (5.43) Condensed Consolidated Statement of Cash Flow Nine Months Ended September 30, 2023 As Previously Reported Restatement Adjustments As Restated Net loss $ (18,438) $ (3,599) $ (22,037) Depreciation and amortization $ 90,439 $ 1,895 $ 92,334 Net book value of property held for lease buyouts $ 18,909 $ 456 $ 19,365 Impairment on property held for lease expense $ 15,356 $ 138 $ 15,494 Property held for lease $ (127,327) $ (1,137) $ (128,464) Prepaid expenses and other current assets $ 1,738 $ 1,387 $ 3,125 Accrued liabilities $ 734 $ 860 $ 1,594 Net cash used in operating activities $ (7,720) $ — $ (7,720)

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates — The preparation of the condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expense during the reporting periods. The most significant estimates relate to the selection of useful lives for property held for lease and the related depreciation method, impairments, and the valua tion allowance associated with deferred tax assets. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Changes in estimates are reflected in reported amounts in the period in which they become known. Actual results could differ from those estimates. Segment Information — The Company is a single segment business, which provides lease payment options to consumers to obtain durable goods from omnichannel and e-commerce partners. Operations are aggregated into a single reportable operating segment based upon similar economic operating characteristics as well as a similar market. Rental Revenue — L ease-to-own agreements, which comprise the majority of total revenue, fall within the scope of ASC 842, Leases under lessor accounting and revenue is recognized in the period it is earned and cash is collected. Pro perty held for lease is leased to customers pursuant to lease purchase agreements with an initial term: typically one week, two weeks, or one month, with non-refundable lease payments. Generally, the customer has the right to acquire title either through a 90-day promotional pricing option, an early purchase option (buyout) available prior to completion of the full agreement, or by completing all lease renewal payments, generally over 10, 12 or 18 months. On any current lease, customers have the option to terminate the agreement at any time without penalty in accordance with the lease term. Amounts received from customers who elect early purchase options (buyouts) are included in rental revenue. Lease payments received prior to their due dates are deferred and recorded as unearned revenue and are recognized as rental revenue in the month in which the revenue is earned. Rental revenue also includes agreed-upon charges assessed for customer lease applications. Payments are received upon submission of the applications and execution of the lease-purchase agreements. Services are considered to be rendered and revenue earned over the lease term. Revenues from direct integration leases are generally recorded net of sales taxes as sales tax is collected from each customer's lease payment and a sales tax payable is recorded for remittance to the respective state. For Katapult Pay transactions, all sales tax is paid by the Company upon purchase of the goods and is recorded in the cost basis of the capitalzed property held for lease. Revenue is recognized for our Katapult Pay transactions when lease payments are received from customers in the month due. Other Revenue — Other revenue consists primarily of the sale of property held for lease (and lease agreements) to third parties and other immaterial sources of income from third party relationships. The Company continues to advance its strategy to focus on additional opportunities to generate revenue, which include the sale of property held for lease to third parties. The sale of property held for lease is considered recurring and ordinary in nature to the Company’s business, and as such, these sales are accounted for within the scope of ASC 606, Revenue from Contracts with Customers. Revenue is recognized when performance obligations are satisfied. Other revenue of $0.7 million and $0.8 million was recognized for the three months ended September 30, 2024 and 2023 , respectively, and $2.3 million and $2.4 million, for the nine months ended September 30, 2024 and 2023 , respectively. Concentration of Credit Risk — The Company’s concentration of credit risk consists primarily of cash. A portion of the Company’s cash balances exceed those that are federally insured. To date, the Company has not recognized any losses caused by uninsured balances. Significant customers are those which represent more than 10% of the Company’s total revenue or gross accounts receivable balance at each balance sheet date. As of September 30, 2024 and December 31, 2023, the Company did not have any customers that accounted for 10% or more of outstanding gross accounts receivable or total revenue during the three and nine months ended September 30, 2024 and 2023. A significant portion of the Company’s transaction volume is with a limited number of merchants, including most significantly, Wayfair Inc. Recent Accounting Pronouncements Not Yet Adopted — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This update is effective for public entities for annual periods beginning after December 15, 2024 with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this ASU. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the segment reporting disclosures and requires disclosure of segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, amounts and description of its composition for other segment items, and interim disclosure of a reportable segment’s profit or loss and assets. Additionally, the amendments require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing performance and deciding how to allocate resources. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this new pronouncement will have on its financial statement disclosures.

Property Held for Lease, Net of

Property Held for Lease, Net of Accumulated Depreciation and Impairment	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT	PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT Property held for lease consists of furniture, mattresses, consumer electronics, appliances, and other durable goods offered for lease-purchase in the normal course of business. Such property is provided to consumers pursuant to a lease-purchase agreement with a minimum lease term; typically one week, two weeks, or one month. The renewal periods of the initial lease term of the agreement are typically 10, 12 or 18 months. Consumers may terminate a lease agreement at any time without penalty. The average consumer continues to lease the property for 8 months because the consumer either exercises the buyout option (early purchase) or terminates the lease purchase agreement prior to the end of the renewal period. As a result, property held for lease is classified as a current asset in the condensed consolidated balance sheets. Property held for lease is recorded at cost, excluding shipping costs, and is carried at net book value. Depreciation for property held for lease is determined using the income forecasting method and is included within cost of revenue. Under the income forecasting method, property held for lease is depreciated in the proportion of rents received to total rents expected to be received based on historical data, which is an activity-based method similar to the units of production method. The Company provides for impairment for the undepreciated balance of the property held for lease assuming no salvage value with a corresponding charge to cost of revenue. The provision for write-offs represents estimated losses based on historical results, which are incurred but not yet identified. Actual write-offs may differ from this estimate. The Company derecognizes the undepreciated net book value of property buyouts as buyouts occur with a corresponding charge to cost of revenue. The Company periodically evaluates fully depreciated property held for lease and when it is determined there is no future economic benefit, the cost of the assets is written off and the related accumulated depreciation is reversed. Property held for lease, net of accumulated depreciation and impairment consists of the following: September 30, December 31, 2024 2023 Property held for lease $ 281,521 $ 290,808 Less: accumulated depreciation and impairment (226,698) (231,473) Property held for lease, net $ 54,823 $ 59,335 The table below details the cost of revenue for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (As Restated) (As Restated) Total depreciation expense related to property held for lease $ 33,599 $ 31,195 $ 101,800 $ 91,655 Net book value of property buyouts 6,748 6,069 21,505 19,365 Impairment charges 5,453 4,895 17,021 15,494 Other (1) 2,558 1,183 5,540 4,710 Total cost of revenue $ 48,358 $ 43,342 $ 145,866 $ 131,224 (1) Other consists mainly of payment processing fees, incentives and other lease related costs.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2024
Other Liabilities Disclosure [Abstract]
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities consists of the following: September 30, December 31, 2024 2023 Bonus accrual $ 4,023 $ 4,183 Sales tax payable 14,949 14,527 Unfunded lease payable 2,313 3,578 Interest payable 149 140 Other accrued liabilities 1,823 1,718 Total accrued liabilities $ 23,257 $ 24,146

Debt & Liquidity

Debt & Liquidity	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
DEBT & LIQUIDITY	DEBT & LIQUIDITY Debt On March 6, 2023, the Company entered into the 15th amendment to the loan and security agreement (as amended, the “15th Amendment" to the “Credit Agreement”) with Midtown Madison Management LLC, as agent for various funds of Atalaya Capital Management (the “Lender”). As part of the amendment, the maturity date of the revolving line of credit (“RLOC”) and the senior secured term loan (“Term Loan”) was extended to June 4, 2025 and the commitments under the RLOC were reduced to $75 million from $125 million. The interest rate for interest paid-in-kind (“PIK”) on the Term Loan (as defined in the 15th Amendment) is (A) if Liquidity is greater than $25 million, 4.5% or (B) if Liquidity is less than $25 million, 6%. The spread on the RLOC was increased to 8.5% from 7.5%, while the spread on the Term Loan remained at 8.0%. Additionally, effective April 1, 2023, the Secured Overnight Financing Rate (“SOFR”) replaced the London Interbank Offered Rate (“LIBOR”), plus a 0.10% credit adjustment spread, for both the RLOC and the Term Loan’s benchmark rate for interest rate calculations. As of September 30, 2024, the interest rates for the RLOC and Term Loan, were 13.8% and 17.8%, respectively, (which includes the 4.5% interest rate applicable to PIK with respect to the Term Loan). In connection with the 15th Amendment, the Company repaid $25 million of outstanding principal amount of the Term Loan and issued a warrant to purchase up to 80,000 shares of its common stock at an exercise price of $0.25 per share, which vested on September 6, 2023. On December 5, 2023, the Company issued a warrant to purchase an additional 80,000 shares of its common stock at an exercise price of $0.25 per share which vested on March 5, 2024 . In conjunction with the 15th Amendment, the Company incurred a loss on partial extinguishment of debt of $2.4 million during the six months ended June 30, 2023. The loss on partial extinguishment of debt is attributed to the derecognition of a proportionate amount of the unamortized debt discount, a result of repaying the $25 million of outstanding principal on the Term Loan. In addition, the 15th Amendment also updated certain financial covenants each as defined in the 15th Amendment, including the Minimum Adjusted EBITDA levels, Minimum Tangible Net Worth, Minimum Liquidity and compliance with a Total Advance Rate. As noted above, the RLOC and Term Loan current maturity date are June 4, 2025. Due to the maturity date being less than one year from the balance sheet date of September 30, 2024, debt is classified as a current liability in the condensed consolidated balance sheet as of September 30, 2024. The Company is currently seeking to refinance the loans prior to maturity in June 2025. A reconciliation of the outstanding principal to the carrying amount of the RLOC is as follows: September 30, December 31, 2024 2023 Principal balance $ 67,304 $ 60,744 Less: Unamortized issuance costs (198) (397) Total carrying amount $ 67,106 $ 60,347 The issuance costs are amortized over the life of the RLOC and included in interest expense and other fees in the condensed consolidated statements of operations and comprehensive loss. A reconciliation of the outstanding principal to the carrying amount of the Term Loan is as follows: September 30, December 31, 2024 2023 Principal balance $ 25,000 $ 25,000 PIK 6,396 5,340 Less: Unamortized debt discount and issuance costs (2,615) (4,837) Total carrying amount $ 28,781 $ 25,503 Amortization expense related to the Term Loan discount and issuance costs of $0.8 million and $0.6 million was recognized for the three months ended September 30, 2024 and 2023, respectively; and $2.2 million and $2.1 million for the nine months ended September 30, 2024 and 2023, respectively. Amortization of debt discount and issuance costs is included in interest expense and other fees in the condensed consolidated statements of operations and comprehensive loss. The RLOC and Term Loan are also subject to certain customary representations, affirmative covenants, which consist of maintaining lease performance metrics, financial ratios related to operating results, and lease delinquency ratios, along with customary negative covenants. On April 24, 2024, the Company entered into the Limited Waiver and 16th Amendment to the Credit Agreement with the Lender (the "16th Amendment"). Pursuant to such 16th Amendment, the Lender granted the Company a waiver of any Specified Defaults (as defined in the 16th Amendment) related to the accounting errors that led to the restatement of the Company’s financial statements for all reporting periods prior to the date of the amendment. In addition, the 16th Amendment also updated certain financial cove nants each as defined in the 16 th Amendment, including Minimum Adjusted EBITDA (Trailing 3 Months), Minimum Adjusted EBITDA (YTD) and Minimum Tangible Net Worth. The Company is in compliance with all of its covenants as of September 30, 2024 and December 31, 2023. Liquidity The Company’s principal sources of liquidity are our cash and cash equivalents generated from leases and borrowings from the RLOC. Principal liquidity needs for the next 12 months and beyond are to fund normal recurring operational expenses, including purchases of assets held for lease, debt obligations, and litigation settlement amounts. As of September 30, 2024, cash and cash equivalents totaled $25.9 million, restricted cash totaled $4.4 million, and unused capacity on the RLOC was $7.7 million. The Company’s revenue and operating results depend significantly on gross originations, which is defined as the retail price of the merchandise associated with lease-purchase agreements entered into during the period. Gross originations are a leading indicator of potential revenue streams, as a percentage of revenue is recognized in the quarter in which the gross originations occur and the remaining revenue is recognized in subsequent quarters. The Company’s financing is generally comprised of cash from leases and borrowings from the RLOC, which is fully collateralized by the Company’s assets. As of November 1, 2024, the Company had a combined principal balance outstanding of approximately $98.6 million related to the RLOC and term loan, both of which mature within twelve months of the date that these financial statements are issued. Both loans were previously refinanced on March 6, 2023 to extend the maturity date from December 4, 2023 to June 4, 2025.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION As of September 30, 2024 , the Company has two stock incentive plans, the Cognical Holdings, Inc. 2014 Stock Incentive Plan, (the “2014 Plan”) and the Katapult Holdings, Inc. 2021 Stock Incentive Plan, (the “2021 Plan”). 2014 Plan In accordance with the 2014 Plan, the board of directors of Legacy Katapult could grant equity awards to officers, employees, directors and consultants for common stock. The 2014 Plan has specific vesting for each stock option grant allowing vesting of the options over one Stock Options A summary of the status of the stock options under the 2014 Plan as of September 30, 2024, and changes during the nine months then ended is presented below: Number of Weighted- Average Balance - December 31, 2023 322,405 $ 7.30 Granted — — Exercised (44,473) 4.75 Forfeited — — Expired (939) 87.43 Balance - September 30, 2024 276,993 $ 7.41 The total intrinsic value of stock options exercised during the nine months ended September 30, 2024 was $0.3 million . No stock options were exercised during the nine months ended September 30, 2023 . 2021 Plan On June 9, 2021, the approved 2021 Plan became effective. In accordance with the 2021 Plan, directors may issue equity awards, including restricted stock awards (“RSA”), restricted stock unit awards (“RSU”) and stock options to officers, employees, directors and consultants to purchase common stock. The awards granted are subject to either service-based and/or performance-based vesting conditions. Restricted stock units (“RSUs”) are equity awards granted to employees that entitle the holder to shares of common stock when the awards vest. RSUs are measured based on the fair value of the Company’s common stock on the date of grant. Awards granted under the 2021 Plan generally vest over one The following table summarizes the Company’s RSA activity under the 2021 Plan during the nine months ended September 30, 2024 : Stock Options Restricted Stock Units Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Balance - December 31, 2023 13,865 $ 261.25 278,290 $ 34.05 Granted — — 180,330 15.80 Exercised / Vested — — (143,434) 31.37 Forfeited — — (29,439) 28.81 Balance - September 30, 2024 13,865 $ 261.25 285,747 $ 24.42 Stock-Based Compensation Expense — Stock-based compensation expense of $1.5 million and $1.4 million was recognized for the three months ended September 30, 2024 and 2023, respectively, and $4.4 million and $5.7 million for the nine months ended September 30, 2024 and 2023, respectively. Stock-based compensation expense is included in operating expenses in the condensed consolidated statements of operations and comprehensive loss. As of September 30, 2024, there was $5.8 million of unrecognized compensation costs.. This amount is expected to be recognized over a weighted-average period of 1.6 years. The total fair value of vested RSUs as of their respective vesting dates were $2.3 million.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax provision of $0.05 million and $0.02 million was recorded for the three months ended September 30, 2024 and 2023, respectively. The Company’s effective tax rate was (0.61%) and (0.66%) for the three months ended September 30, 2024 and 2023, respectively. The provision for the three months ended September 30, 2024 relates predominately to state income taxes for states that have net operating loss usage limitations. The Company’s effective tax rate for the three months ended September 30, 2024 and 2023 is different than the statutory rate primarily due to changes in the Company’s valuation allowance. The income tax provision of $0.11 million and $0.05 million was recorded for the nine months ended September 30, 2024 and 2023, respectively. The Company’s effective tax rate was (0.75%) and (0.29%) for the nine months ended September 30, 2024 and 2023, respectively. The provision for the nine months ended September 30, 2024 relates predominately to state income taxes for states that have net operating loss usage limitations. The Company’s effective tax rate for the nine months ended September 30, 2024 and 2023 is different than the statutory rate primarily due to changes in the Company’s valuation allowance. As of December 31, 2023, the Company had U.S. federal net operating loss carryforward of $132.9 million that expire at various dates from 2036 through 2037 and includes $105.6 million that have an unlimited carryforward period. As of December 31, 2023, the Company has U.S. state and local net operating loss carryforwards of $52.2 million that expire from 2024 to 2043. In evaluating its ability to realize its net deferred tax assets, the Company considered all available positive and negative evidence, such as past operating results, forecasted earnings, prudent and feasible tax planning strategies, and the future realization of the tax benefits of existing temporary differences. The Company remains in a cumulative tax loss position for the 36 months ended September 30, 2024, and determined that it is more likely than not that its net deferred tax assets will not be realized. Th e Company continues to maintain a full valuation allowance as of September 30, 2024 and December 31, 2023 .

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
NET LOSS PER SHARE	NET LOSS PER SHARE As discussed in Note 6, on March 6, 2023, in connection with the 15th amendment to the Credit Agreement, the Company issued a warrant to purchase up to 80,000 shares of the Company common stock at an exercise price of $0.25 per share, which vested on September 6, 2023. On December 5, 2023, the Company issued a warrant to purchase an additional 80,000 shares of our common stock at an exercise price of $0.25 per share which are vested. The warrants are considered exercisable for 160,000 shares for little to no consideration and the shares are therefore included in basic shares outstanding at their issuance date. The Company’s potentially dilutive securities, which include unvested RSUs, stock options to purchase common stock and warrants to purchase common stock, have been excluded from the computation of diluted net loss per share for certain periods, as the effect would be antidilutive. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same in periods of a net loss. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three and Nine Months Ended September 30, 2024 2023 Public warrants 500,000 500,000 Private warrants 13,300 13,300 Stock options 290,858 336,345 Unvested restricted stock units 285,747 296,195 Warrants issued in connection with 15th amendment to Credit Agreement — 80,000 Total common stock equivalents 1,089,905 1,225,840

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Litigation risk— From time to time, the Company may become involved in various legal actions arising in the ordinary course of business. Management is of the opinion that the ultimate liability, if any, from these actions will not have a material effect on its financial condition or results of operations. The Company is not currently aware of any indemnification or other claims, except as discussed below and has accrued liabilities related to such obligations in the condensed consolidated financial statements when estimable and probable, as of September 30, 2024 and December 31, 2023. Except as set forth below, the Company and its subsidiaries are not a party to, and their properties are not the subject of, any known material pending legal proceedings. DCA Litigation On April 9, 2021, Daiwa Corporate Advisory LLC (“DCA”), filed a complaint in the Supreme Court of the State of New York, New York County. The complaint related to an April 11, 2018 letter agreement (the “Letter Agreement”) entered into by DCA and Legacy Katapult. On October 7, 2024, the Company reached a settlement with DCA to resolve any and all disputes that exist between the two parties for total consideration of $3.0 million with half paid on October 11, 2024 and the remainder paid over the next two years. On October 14, 2024, the case was formally discontinued, with prejudice. The Company recognized $2.25 million in estimated loss in accrued litigation settlement liability for the payments that are due within one year from September 30, 2024 and $0.75 million in other liabilities for the installment payments that are due after September 30, 2025 in its condensed consolidated balance sheet as of September 30, 2024. The Company recognized $3.0 million in operating expenses in its condensed consolidated statements of operations for the three and nine months ended September 30, 2024 as the lawsuit which gave rise to the DCA settlement occurred prior to September 30, 2024. Shareholder Litigation On August 27, 2021, a putative class action lawsuit, captioned McIntosh v. Katapult Holdings, Inc., et al, was filed in the U.S. District Court for the Southern District of New York (the “New York Action”). On August 25, 2022, a purported Company stockholder filed a putative class action lawsuit, captioned Saunders v. Einbinder, et al., against directors and officers of FinServ Acquisition Corp. (“FinServ”) and FinServ Holdings LLC in the Delaware Court of Chancery (the “Delaware Action”). On May 20, 2024, the Company reached an agreement in principle to settle the New York Action and Delaware Action for total consideration of $12.0 million, comprised of: (1) a cash component of $8.5 million (the “Cash Component”); and (2) an additional component of $3.5 million comprised of the Company’s common stock (the “Settlement Shares”) and/or cash (the “Additional Component”). On July 3, 2024, the parties executed Stipulations of Settlement. In agreeing to settle, neither the Company nor any of the individual defendants made any admission of liability. On July 3, 2024, a motion for preliminary approval of the proposed settlement was filed in the New York Action and a proposed scheduling order for the proposed settlement was filed in the Delaware Action. On July 17, 2024, the Court in the Delaware Action approved the scheduling order and set a settlement hearing date of October 10, 2024. On July 24, 2024, the Court in the New York Action granted preliminary approval and a settlement hearing date has been set for December 13, 2024 . On October 10, 2024, the Delaware Court of Chancery approved the settlement of the Delaware Action, dismissing all claims asserted with prejudice. . The number of Settlement Shares for the Delaware Action (the “Delaware Settlement Shares”) is 275,845 shares which was calculated by dividing $2.8 million by the volume-weighted average per share price (“VWAP”) of the Company’s common stock for the ten (10) consecutive trading days immediately preceding the hearing held on October 10, 2024 for the final approval for the Delaware Action (the “Delaware Settlement Hearing VWAP”). 108,048 of the Delaware Settlement Shares are considered the “Delaware Excess Settlement Shares.” The Company may either deliver the Delaware Excess Settlement Shares (reduced by the New York Unused Shares (as defined below)) or pay in cash the full value of the Delaware Excess Settlement Shares (reduced by the New York Unused Shares), calculated by multiplying the number of Delaware Excess Settlement Shares (reduced by the New York Unused Shares) by the Delaware Settlement Hearing VWAP. The Delaware Excess Settlement Shares or cash are due in two equal installments to be made on April 10, 2025 and October 10, 2025. The final approval hearing in the New York Action is scheduled for December 13, 2024. The settlement of the New York Action requires final court approval. There can be no assurance that the Court in the New York Action will grant final approval. If final court approval of the proposed settlement in the New York action is granted, the number of Settlement Shares for the New York Action (the “New York Settlement Shares”) will be calculated by dividing $0.7 million by the VWAP of the Company’s common stock for the ten (10) consecutive trading days immediately preceding the date of the hearing on final approval for the New York Action (the “New York Settlement Hearing VWAP”); in calculating the New York Settlement Shares (1) to the extent the New York Settlement Shares are less than 43,839, the difference between the New York Settlement Shares and 43,839 shall be the “New York Unused Shares” and (2) any amount of New York Settlement Shares above 43,839 shall be considered the “New York Excess Settlement Shares.” For the settlement of the New York Action, the Company may either deliver the New York Excess Settlement Shares or pay in cash the full value of the New York Excess Settlement Shares, calculated by multiplying the number of New York Excess Settlement Shares by the New York Settlement Hearing VWAP. The New York Excess Settlement Shares or cash will be due in two equal installments six months and 12 months from the New York Settlement Hearing. As previously disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, the Company had accrued a $12.0 million liability, including a $5.0 million litigation insurance reimbursement receivable, on its balance sheet for the year ended December 31, 2023 for the New York Action and the Delaware Action. In August 2024, the Company paid $3.5 million in cash and the insurer paid $5.0 million into an escrow account for the Cash Component of the settlements . FlexShopper Litigation On September 30, 2024, FlexShopper, Inc. (“FlexShopper”) filed a complaint against Katapult in the U.S. District Court for the Eastern District of Texas, Marshall Division. The complaint alleges patent infringement and seeks an injunction as well as damages for alleged lost profits and willfulness. The Company has not recorded any loss or gain contingencies associated with this litigation as it is not probable or reasonably estimable as of September 30, 2024. The Company intends to vigorously defend this case.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS Certain assets and liabilities are required to be carried at fair value in accordance with GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company uses a three-level hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable: Level 1 —Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Level 3 —Inputs are unobservable inputs for the asset or liability. The Company’s financial instruments consist of accounts payable, accrued expenses, warrant liability, the RLOC, and the Term Loan. The Company’s assets, accounts payable and accrued expenses are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. The condensed consolidated financial statements also include fair value level 3 measurements of private common stock warrants. The Company uses a third-party valuation firm to determine the fair value of certain of the Company's financial instruments. RLOC and Term Loan September 30, 2024 December 31, 2023 Carrying amount Fair value Carrying amount Fair value RLOC $ 67,106 $ 69,776 $ 60,347 $ 64,631 Term Loan 28,781 33,374 25,503 33,900 $ 95,887 $ 103,150 $ 85,850 $ 98,531 The estimated fair values of the Company’s RLOC and Term Loan were determined using Level 2 inputs based on an estimated credit rating for the Company and the trading value of debt for similar debt instruments with similar credit ratings. Warrant Liability Warrant liability - Public (Level 1) & Private Warrants (Level 3) Fair Value Measurement Using Level 1 Level 2 Level 3 Total Balance at December 31, 2023 $ 93 $ — $ 2 $ 95 Change in fair value (22) — — (22) Balance at September 30, 2024 $ 71 $ — $ 2 $ 73 During the nine months ended September 30, 2024 and 2023 , there were no transfers between Level 1 and Level 2, nor into or out of Level 3.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS The Company evaluated subsequent events through the date the condensed consolidated financial statements were issued, for events requiring adjustment to or disclosure in these condensed consolidated financial sta tements. Except as discussed below, there are no events that require adjustment to or disclosure in these condensed consolidated financial statements. Shareholder Litigation On October 10, 2024, the Delaware Court of Chancery approved the settlement of the Delaware Action, dismissing all claims asserted with prejudice and on October 24, 2024, the Company delivered 167,797 shares to the plaintiff. DCA Litigation On October 7, 2024, the Company reached a settlement with DCA to resolve any and all disputes that exist between them for total consideration of $3.0 million of which $1.5 million was paid on October 11, 2024 and the remainder will be paid in installments over the next two years. The Company recognized $2.25 million in estimated loss in accrued litigation settlement liability for the payments that are due within one year from September 30, 2024 and $0.75 million in other liabilities for the installment payments that are due after September 30, 2025 in its condensed consolidated balance sheet as of September 30, 2024 , as the lawsuit which gave rise to the DCA settlement occurred prior to September 30, 2024. See note 10 for further information regarding the Shareholder Litigation and DCA litigation.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net loss	$ (8,888)	$ (4,054)	$ (16,346)	$ (22,037)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Subsidiaries	Subsidiaries— The condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries Katapult Intermediate Holdings, LLC (formerly known as Keys Merger Sub 2, LLC), Katapult Group, Inc. and Katapult SPV-1 LLC, which originates all of the Company’s leases. Katapult was incorporated in Delaware in 2016 and changed its headquarters from New York, New York to Plano, Texas in December 2020. Katapult Group, Inc. was incorporated in the state of Delaware in 2012. Katapult SPV-1 LLC is a Delaware limited liability company formed in Delaware in 2019.
Basis of Presentation	Basis of Presentation
Use of Estimates	Use of Estimates — The preparation of the condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of income and expense during the reporting periods. The most significant estimates relate to the selection of useful lives for property held for lease and the related depreciation method, impairments, and the valua tion allowance associated with deferred tax assets. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. Changes in estimates are reflected in reported amounts in the period in which they become known. Actual results could differ from those estimates.
Segment Information	Segment Information — The Company is a single segment business, which provides lease payment options to consumers to obtain durable goods from omnichannel and e-commerce partners. Operations are aggregated into a single reportable operating segment based upon similar economic operating characteristics as well as a similar market.
Rental Revenue	Rental Revenue — L ease-to-own agreements, which comprise the majority of total revenue, fall within the scope of ASC 842, Leases under lessor accounting and revenue is recognized in the period it is earned and cash is collected. Pro perty held for lease is leased to customers pursuant to lease purchase agreements with an initial term: typically one week, two weeks, or one month, with non-refundable lease payments. Generally, the customer has the right to acquire title either through a 90-day promotional pricing option, an early purchase option (buyout) available prior to completion of the full agreement, or by completing all lease renewal payments, generally over 10, 12 or 18 months. On any current lease, customers have the option to terminate the agreement at any time without penalty in accordance with the lease term. Amounts received from customers who elect early purchase options (buyouts) are included in rental revenue. Lease payments received prior to their due dates are deferred and recorded as unearned revenue and are recognized as rental revenue in the month in which the revenue is earned. Rental revenue also includes agreed-upon charges assessed for customer lease applications. Payments are received upon submission of the applications and execution of the lease-purchase agreements. Services are considered to be rendered and revenue earned over the lease term. Revenues from direct integration leases are generally recorded net of sales taxes as sales tax is collected from each customer's lease payment and a sales tax payable is recorded for remittance to the respective state. For Katapult Pay transactions, all sales tax is paid by the Company upon purchase of the goods and is recorded in the cost basis of the capitalzed property held for lease. Revenue is recognized for our Katapult Pay transactions when lease payments are received from customers in the month due.
Other Revenue	Other Revenue
Concentrations of Credit Risk	Concentration of Credit Risk — The Company’s concentration of credit risk consists primarily of cash. A portion of the Company’s cash balances exceed those that are federally insured. To date, the Company has not recognized any losses caused by uninsured balances.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted — In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . This ASU will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This update is effective for public entities for annual periods beginning after December 15, 2024 with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is still evaluating the impact of this ASU. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which expands the segment reporting disclosures and requires disclosure of segment expenses that are regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss, amounts and description of its composition for other segment items, and interim disclosure of a reportable segment’s profit or loss and assets. Additionally, the amendments require the disclosure of the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing performance and deciding how to allocate resources. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, on a retrospective basis. Early adoption is permitted. The Company is currently evaluating the impact the adoption of this new pronouncement will have on its financial statement disclosures.

Restatement of Previously Iss_2

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements (Tables)	9 Months Ended
	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Summary of Revision on the Prior Period Financial Statements	The following tables present a reconciliation of the as-previously-reported condensed consolidated financial statements to the restated amounts as of and for the three and nine months ended September 30, 2023 which include the following: (1) as restated condensed consolidated balance sheet, (2) as restated condensed consolidated statement of operations and comprehensive loss and (3) as restated condensed consolidated statement of cash flows. Presented below are the changes to each financial statement line item which changed as a result of the restatement. Condensed Consolidated Balance Sheet As of September 30, 2023 As Previously Reported Restatement Adjustments As Restated Property held for lease, net of accumulated depreciation and impairment $ 53,581 $ (1,911) $ 51,670 Prepaid expenses and other current assets $ 6,777 $ (1,801) $ 4,976 Total current assets $ 99,227 $ (3,712) $ 95,515 Total assets $ 102,303 $ (3,712) $ 98,591 Accrued liabilities $ 15,747 $ 6,451 $ 22,198 Unearned revenue $ 2,124 $ 2,631 $ 4,755 Total current liabilities $ 18,903 $ 9,082 $ 27,985 Total liabilities $ 104,192 $ 9,082 $ 113,274 Accumulated deficit $ (95,114) $ (12,794) $ (107,908) Total stockholders' deficit $ (1,889) $ (12,794) $ (14,683) Total liabilities and stockholders' deficit $ 102,303 $ (3,712) $ 98,591 Condensed Consolidated Statement of Operations and Comprehensive Loss Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 As Previously Reported Restatement Adjustments As Restated As Previously Reported Restatement Adjustments As Restated Rental revenue $ 54,481 $ (439) $ 54,042 $ 163,079 $ (1,467) $ 161,612 Total revenue $ 55,250 $ (439) $ 54,811 $ 165,497 $ (1,467) $ 164,030 Cost of revenue $ 42,439 $ 903 $ 43,342 $ 128,486 $ 2,738 $ 131,224 Gross profit $ 12,811 $ (1,342) $ 11,469 $ 37,011 $ (4,205) $ 32,806 Total operating expenses $ 12,111 $ (202) $ 11,909 $ 41,559 $ (606) $ 40,953 Loss from operations $ 700 $ (1,140) $ (440) $ (4,548) $ (3,599) $ (8,147) Loss before income taxes $ (2,895) $ (1,140) $ (4,035) $ (18,385) $ (3,599) $ (21,984) Net loss $ (2,914) $ (1,140) $ (4,054) $ (18,438) $ (3,599) $ (22,037) Net loss per common share - basic and diluted $ (0.71) $ (0.28) $ (0.98) $ (4.54) $ (0.89) $ (5.43) Condensed Consolidated Statement of Cash Flow Nine Months Ended September 30, 2023 As Previously Reported Restatement Adjustments As Restated Net loss $ (18,438) $ (3,599) $ (22,037) Depreciation and amortization $ 90,439 $ 1,895 $ 92,334 Net book value of property held for lease buyouts $ 18,909 $ 456 $ 19,365 Impairment on property held for lease expense $ 15,356 $ 138 $ 15,494 Property held for lease $ (127,327) $ (1,137) $ (128,464) Prepaid expenses and other current assets $ 1,738 $ 1,387 $ 3,125 Accrued liabilities $ 734 $ 860 $ 1,594 Net cash used in operating activities $ (7,720) $ — $ (7,720)

Property Held for Lease, Net _2

Property Held for Lease, Net of Accumulated Depreciation and Impairment (Tables)	9 Months Ended
	Sep. 30, 2024
Leases [Abstract]
Summary of Property Held for Lease, Net	Property held for lease, net of accumulated depreciation and impairment consists of the following: September 30, December 31, 2024 2023 Property held for lease $ 281,521 $ 290,808 Less: accumulated depreciation and impairment (226,698) (231,473) Property held for lease, net $ 54,823 $ 59,335
Summary of Cost of Revenue	The table below details the cost of revenue for the three and nine months ended September 30, 2024 and 2023: Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (As Restated) (As Restated) Total depreciation expense related to property held for lease $ 33,599 $ 31,195 $ 101,800 $ 91,655 Net book value of property buyouts 6,748 6,069 21,505 19,365 Impairment charges 5,453 4,895 17,021 15,494 Other (1) 2,558 1,183 5,540 4,710 Total cost of revenue $ 48,358 $ 43,342 $ 145,866 $ 131,224 (1) Other consists mainly of payment processing fees, incentives and other lease related costs.

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2024
Other Liabilities Disclosure [Abstract]
Summary of Accrued Liabilities	Accrued liabilities consists of the following: September 30, December 31, 2024 2023 Bonus accrual $ 4,023 $ 4,183 Sales tax payable 14,949 14,527 Unfunded lease payable 2,313 3,578 Interest payable 149 140 Other accrued liabilities 1,823 1,718 Total accrued liabilities $ 23,257 $ 24,146

Debt & Liquidity (Tables)

Debt & Liquidity (Tables)	9 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Summary of Long-term Debt	A reconciliation of the outstanding principal to the carrying amount of the RLOC is as follows: September 30, December 31, 2024 2023 Principal balance $ 67,304 $ 60,744 Less: Unamortized issuance costs (198) (397) Total carrying amount $ 67,106 $ 60,347 A reconciliation of the outstanding principal to the carrying amount of the Term Loan is as follows: September 30, December 31, 2024 2023 Principal balance $ 25,000 $ 25,000 PIK 6,396 5,340 Less: Unamortized debt discount and issuance costs (2,615) (4,837) Total carrying amount $ 28,781 $ 25,503

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock Options	A summary of the status of the stock options under the 2014 Plan as of September 30, 2024, and changes during the nine months then ended is presented below: Number of Weighted- Average Balance - December 31, 2023 322,405 $ 7.30 Granted — — Exercised (44,473) 4.75 Forfeited — — Expired (939) 87.43 Balance - September 30, 2024 276,993 $ 7.41 The following table summarizes the Company’s RSA activity under the 2021 Plan during the nine months ended September 30, 2024 : Stock Options Restricted Stock Units Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Balance - December 31, 2023 13,865 $ 261.25 278,290 $ 34.05 Granted — — 180,330 15.80 Exercised / Vested — — (143,434) 31.37 Forfeited — — (29,439) 28.81 Balance - September 30, 2024 13,865 $ 261.25 285,747 $ 24.42
Summary of RSUs	The following table summarizes the Company’s RSA activity under the 2021 Plan during the nine months ended September 30, 2024 : Stock Options Restricted Stock Units Shares Weighted- Average Exercise Price Shares Weighted- Average Grant Date Fair Value Balance - December 31, 2023 13,865 $ 261.25 278,290 $ 34.05 Granted — — 180,330 15.80 Exercised / Vested — — (143,434) 31.37 Forfeited — — (29,439) 28.81 Balance - September 30, 2024 13,865 $ 261.25 285,747 $ 24.42

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of Antidilutive Securities	The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect: Three and Nine Months Ended September 30, 2024 2023 Public warrants 500,000 500,000 Private warrants 13,300 13,300 Stock options 290,858 336,345 Unvested restricted stock units 285,747 296,195 Warrants issued in connection with 15th amendment to Credit Agreement — 80,000 Total common stock equivalents 1,089,905 1,225,840

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2024
Fair Value Disclosures [Abstract]
Summary of Fair Values	RLOC and Term Loan September 30, 2024 December 31, 2023 Carrying amount Fair value Carrying amount Fair value RLOC $ 67,106 $ 69,776 $ 60,347 $ 64,631 Term Loan 28,781 33,374 25,503 33,900 $ 95,887 $ 103,150 $ 85,850 $ 98,531
Summary of Warrant Liability Activity	Warrant Liability Warrant liability - Public (Level 1) & Private Warrants (Level 3) Fair Value Measurement Using Level 1 Level 2 Level 3 Total Balance at December 31, 2023 $ 93 $ — $ 2 $ 95 Change in fair value (22) — — (22) Balance at September 30, 2024 $ 71 $ — $ 2 $ 73

Restatement of Previously Iss_3

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in rental revenue	$ (59,609)	$ (54,042)	$ (181,947)	$ (161,612)
Increase to sales tax payable	14,949		14,949		$ 14,527
Cost of revenue	48,358	43,342	145,866	131,224
Decrease to property held for lease, net of accumulated depreciation and impairment	(54,823)	(51,670)	(54,823)	(51,670)	(59,335)
Decrease in prepaid expenses and other current assets	(4,430)	(4,976)	(4,430)	(4,976)	(4,491)
Unearned revenue	4,882	4,755	4,882	4,755	4,949
Accumulated deficit	$ 138,882	107,908	$ 138,882	107,908	$ 122,536
Restatement Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Increase to sales tax payable		6,500		6,500
Cost of revenue		903		2,738
Decrease to property held for lease, net of accumulated depreciation and impairment		1,911		1,911
Decrease in prepaid expenses and other current assets		1,801		1,801
Unearned revenue		2,631		2,631
Accumulated deficit		12,794		12,794
Restatement Adjustments | Sales Tax Payable
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Decrease in rental revenue		439		1,467
Restatement Adjustments | Lease Depreciation Expense
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cost of revenue		900		2,700
Decrease to property held for lease, net of accumulated depreciation and impairment		2,500		2,500
Decrease in prepaid expenses and other current assets		$ 200		$ 200

Restatement of Previously Iss_4

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements - Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property held for lease, net of accumulated depreciation and impairment	$ 54,823		$ 59,335	$ 51,670
Prepaid expenses and other current assets	4,430		4,491	4,976
Total current assets	89,546		97,637	95,515
Total assets	91,975		100,862	98,591
Accrued liabilities	23,257		24,146	22,198
Unearned revenue	4,882		4,949	4,755
Total current liabilities	130,999		42,295	27,985
Total liabilities	132,238		128,854	113,274
Accumulated deficit	(138,882)		(122,536)	(107,908)
Total stockholders' deficit	(40,263)	$ (32,946)	(27,992)	(14,683)	$ (11,933)	$ (2,066)
Total liabilities and stockholders' deficit	$ 91,975		$ 100,862	98,591
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property held for lease, net of accumulated depreciation and impairment				53,581
Prepaid expenses and other current assets				6,777
Total current assets				99,227
Total assets				102,303
Accrued liabilities				15,747
Unearned revenue				2,124
Total current liabilities				18,903
Total liabilities				104,192
Accumulated deficit				(95,114)
Total stockholders' deficit				(1,889)
Total liabilities and stockholders' deficit				102,303
Restatement Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property held for lease, net of accumulated depreciation and impairment				(1,911)
Prepaid expenses and other current assets				(1,801)
Total current assets				(3,712)
Total assets				(3,712)
Accrued liabilities				6,451
Unearned revenue				2,631
Total current liabilities				9,082
Total liabilities				9,082
Accumulated deficit				(12,794)
Total stockholders' deficit				(12,794)
Total liabilities and stockholders' deficit				$ (3,712)

Restatement of Previously Iss_5

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements - Condensed Consolidated Statement of Operations and Comprehensive Loss (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Rental revenue	$ 59,609	$ 54,042	$ 181,947	$ 161,612
Total revenue	60,307	54,811	184,231	164,030
Cost of revenue	48,358	43,342	145,866	131,224
Gross profit	11,949	11,469	38,365	32,806
Total operating expenses	16,396	11,909	41,633	40,953
Loss from operations	(4,447)	(440)	(3,268)	(8,147)
Loss before income taxes	(8,841)	(4,035)	(16,233)	(21,984)
Net loss	$ (8,888)	$ (4,054)	$ (16,346)	$ (22,037)
Net loss per common share - basic (in dollars per share)	$ (2.05)	$ (0.98)	$ (3.81)	$ (5.43)
Net loss per common share - diluted (in dollars per share)	$ (2.05)	$ (0.98)	$ (3.81)	$ (5.43)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Rental revenue		$ 54,481		$ 163,079
Total revenue		55,250		165,497
Cost of revenue		42,439		128,486
Gross profit		12,811		37,011
Total operating expenses		12,111		41,559
Loss from operations		700		(4,548)
Loss before income taxes		(2,895)		(18,385)
Net loss		$ (2,914)		$ (18,438)
Net loss per common share - basic (in dollars per share)		$ (0.71)		$ (4.54)
Net loss per common share - diluted (in dollars per share)		$ (0.71)		$ (4.54)
Restatement Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Total revenue		$ (439)		$ (1,467)
Cost of revenue		903		2,738
Gross profit		(1,342)		(4,205)
Total operating expenses		(202)		(606)
Loss from operations		(1,140)		(3,599)
Loss before income taxes		(1,140)		(3,599)
Net loss		$ (1,140)		$ (3,599)
Net loss per common share - basic (in dollars per share)		$ (0.28)		$ (0.89)
Net loss per common share - diluted (in dollars per share)		$ (0.28)		$ (0.89)

Restatement of Previously Iss_6

Restatement of Previously Issued Unaudited Interim Condensed Consolidated Financial Statements - Condensed Consolidated Statement of Cash Flow (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss	$ (8,888)	$ (4,054)	$ (16,346)	$ (22,037)
Depreciation and amortization			102,731	92,334
Net book value of property held for lease buyouts	6,748	6,069	21,505	19,365
Impairment charges	$ 5,453	4,895	17,021	15,494
Property held for lease			(135,814)	(128,464)
Prepaid expenses and other current assets			61	3,125
Accrued liabilities			(889)	1,594
Net cash used in operating activities			$ (4,070)	(7,720)
As Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss		(2,914)		(18,438)
Depreciation and amortization				90,439
Net book value of property held for lease buyouts				18,909
Impairment charges				15,356
Property held for lease				(127,327)
Prepaid expenses and other current assets				1,738
Accrued liabilities				734
Net cash used in operating activities				(7,720)
Restatement Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net loss		$ (1,140)		(3,599)
Depreciation and amortization				1,895
Net book value of property held for lease buyouts				456
Impairment charges				138
Property held for lease				(1,137)
Prepaid expenses and other current assets				1,387
Accrued liabilities				860
Net cash used in operating activities				$ 0

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)
Product Information [Line Items]
Number of operating segments			1
Number of reportable segments			1
Promotional period for pricing option (buyout)	90 days		90 days
Other revenue | $	$ 698	$ 769	$ 2,284	$ 2,418
Ten Month Renewal Period
Product Information [Line Items]
Lessee, operating lease, renewal term	10 months		10 months
Twelve Month Renewal Period
Product Information [Line Items]
Lessee, operating lease, renewal term	12 months		12 months
Eighteen Month Renewal Period
Product Information [Line Items]
Lessee, operating lease, renewal term	18 months		18 months

Property Held for Lease, Net _3

Property Held for Lease, Net of Accumulated Depreciation and Impairment - Narrative (Details)	Sep. 30, 2024
Ten Months
Operating Leased Assets [Line Items]
Renewal term	10 months
Twelve Months
Operating Leased Assets [Line Items]
Renewal term	12 months
Eighteen Months
Operating Leased Assets [Line Items]
Renewal term	18 months
Eight Months
Operating Leased Assets [Line Items]
Renewal term	8 months

Property Held for Lease, Net _4

Property Held for Lease, Net of Accumulated Depreciation and Impairment- Summary of Property Held for Lease, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Leases [Abstract]
Property held for lease	$ 281,521	$ 290,808
Less: accumulated depreciation and impairment	(226,698)	(231,473)
Property held for lease, net	$ 54,823	$ 59,335	$ 51,670

Property Held for Lease, Net _5

Property Held for Lease, Net of Accumulated Depreciation and Impairment- Summary of Property Subject to or Available for Operating Lease, Cost of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Total depreciation expense related to property held for lease	$ 33,599	$ 31,195	$ 101,800	$ 91,655
Net book value of property buyouts	6,748	6,069	21,505	19,365
Impairment charges	5,453	4,895	17,021	15,494
Other	2,558	1,183	5,540	4,710
Cost of revenue	$ 48,358	$ 43,342	$ 145,866	$ 131,224

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023
Other Liabilities Disclosure [Abstract]
Bonus accrual	$ 4,023	$ 4,183
Sales tax payable	14,949	14,527
Unfunded lease payable	2,313	3,578
Interest payable	149	140
Other accrued liabilities	1,823	1,718
Total accrued liabilities	$ 23,257	$ 24,146	$ 22,198

Debt & Liquidity - Narrative (D

Debt & Liquidity - Narrative (Details) - USD ($)				3 Months Ended		6 Months Ended	9 Months Ended
	Apr. 01, 2023	Mar. 06, 2023	Mar. 05, 2023	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Nov. 01, 2024	Dec. 31, 2023	Dec. 05, 2023
Line of Credit Facility [Line Items]
Principal repayment on term loan							$ 0	$ 25,000,000
Loss on partial extinguishment of debt				$ 0	$ 0	$ 2,400,000	0	2,391,000
Cash and cash equivalents				25,877,000			25,877,000			$ 21,408,000
Restricted cash				$ 4,416,000			$ 4,416,000			7,403,000
Subsequent Event
Line of Credit Facility [Line Items]
Outstanding principal									$ 98,600,000
Senior Secured Term Loan Facility Commitment | Senior Loans
Line of Credit Facility [Line Items]
Paid-in-kind interest liquidity trigger amount		$ 25,000,000
Paid-in-kind interest rate		4.50%
Paid-in-kind interest rate if liquidity is less than $25000		6%
Basis spread on variable rate		8%
Interest rate				17.80%			17.80%
Principal repayment on term loan		$ 25,000,000
Number of shares called by warrants (in shares)		160,000
Amortization expense				$ 800,000	$ 600,000		$ 2,200,000	$ 2,100,000
Outstanding principal				28,781,000			28,781,000			$ 25,503,000
Senior Secured Term Loan Facility Commitment | Senior Loans | Term Loan Warrants Issued March 2023
Line of Credit Facility [Line Items]
Number of shares called by warrants (in shares)		80,000
Exercise price (in dollars per share)		$ 0.25
Senior Secured Term Loan Facility Commitment | Senior Loans | Term Loan Warrants Issued December2023
Line of Credit Facility [Line Items]
Number of shares called by warrants (in shares)											80,000
Exercise price (in dollars per share)											$ 0.25
RLOC
Line of Credit Facility [Line Items]
Unused capacity amount				$ 7,700,000			$ 7,700,000
RLOC | First Revolving Line Of Credit, Refinanced
Line of Credit Facility [Line Items]
Line of credit, principal amount		$ 75,000,000	$ 125,000,000
Basis spread on variable rate	0.10%	8.50%	7.50%
Annual interest rate							13.80%
RLOC | Senior Secured Term Loan Facility Commitment
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.10%

Debt & Liquidity - Summary of B

Debt & Liquidity - Summary of Borrowings Outstanding of RLOC (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total carrying amount	$ 0	$ 60,347
RLOC | First Revolving Line Of Credit, Refinanced
Debt Instrument [Line Items]
Principal balance	67,304	60,744
Less: Unamortized issuance costs	(198)	(397)
Total carrying amount	$ 67,106	$ 60,347

Debt & Liquidity - Summary of_2

Debt & Liquidity - Summary of Borrowings Outstanding of Term Loan (Details) - Senior Loans - Senior Secured Term Loan Facility Commitment - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Principal balance	$ 25,000	$ 25,000
PIK	6,396	5,340
Less: Unamortized debt discount and issuance costs	(2,615)	(4,837)
Total carrying amount	$ 28,781	$ 25,503

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended		45 Months Ended
	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) plan shares	Sep. 30, 2023 USD ($) shares	Jun. 30, 2024 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of plans | plan			2
Stock-based compensation expense | $	$ 1.5	$ 1.4	$ 4.4	$ 5.7
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSU compensation cost not yet recognized | $	$ 5.8		$ 5.8
Compensation cost not yet recognized, period of recognition			1 year 7 months 6 days
Fair value of vested RSUs | $			$ 2.3
2014 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)			0
Shares exercised, intrinsic value | $			$ 0.3
Stock options exercised (in shares)			44,473	0
2014 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)					0
2014 Plan | Minimum | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
2014 Plan | Maximum | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years
2021 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)			0
Stock options exercised (in shares)			0
2021 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock authorized for issuance (in shares)	639,467		639,467
2021 Plan | Minimum | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			1 year
2021 Plan | Maximum | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			4 years

Stock-Based Compensation - 2014

Stock-Based Compensation - 2014 Plan (Details) - 2014 Plan - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Number of Shares
Beginning balance (in shares)	322,405
Granted (in shares)	0
Exercised (in shares)	(44,473)	0
Forfeited (in shares)	0
Expired ( in shares)	(939)
Ending balance (in shares)	276,993
Weighted- Average Exercise Price
Beginning balance (in dollars per share)	$ 7.30
Granted (in dollars per share)	0
Exercised (in dollars per share)	4.75
Forfeited (in dollars per share)	0
Expired (in dollars per share)	87.43
Ending balance (in dollars per share)	$ 7.41

Stock-Based Compensation - 2021

Stock-Based Compensation - 2021 Plan (Details) - 2021 Plan	9 Months Ended
	Sep. 30, 2024 $ / shares shares
Stock Option - Shares
Beginning balance (in shares) | shares	13,865
Granted (in shares) | shares	0
Exercised (in shares) | shares	0
Forfeited (in shares) | shares	0
Ending balance (in shares) | shares	13,865
Stock Options - Weighted-Average Exercise Price
Beginning balance (in dollars per share) | $ / shares	$ 261.25
Granted (in dollars per share) | $ / shares	0
Exercised (in dollars per share) | $ / shares	0
Forfeited (in dollars per share) | $ / shares	0
Ending balance (in dollars per share) | $ / shares	$ 261.25
Unvested restricted stock units
Restricted Stock Units - Shares
Outstanding, beginning balance (in shares) | shares	278,290
Granted (in shares) | shares	180,330
Exercised (in shares) | shares	(143,434)
Forfeited (in shares) | shares	(29,439)
Outstanding, ending balance (in shares) | shares	285,747
Restricted Stock Units - Weighted- Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 34.05
Granted (in dollars per share) | $ / shares	15.80
Exercised (in dollars per share) | $ / shares	31.37
Forfeited (in dollars per share) | $ / shares	28.81
Outstanding, ending balance (in dollars per share) | $ / shares	$ 24.42

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Operating Loss Carryforwards [Line Items]
Provision (benefit) for income taxes	$ 47	$ 19	$ 113	$ 53
Effective tax rate	(0.61%)	(0.66%)	(0.75%)	(0.29%)
Federal
Operating Loss Carryforwards [Line Items]
Operating loss carryforward					$ 132,900
Operating loss carryforwards not subject to expiration					105,600
State and local
Operating Loss Carryforwards [Line Items]
Operating loss carryforward					$ 52,200

Net Loss Per Share - Narrative

Net Loss Per Share - Narrative (Details) - Senior Secured Term Loan Facility Commitment - Senior Loans - $ / shares	Dec. 05, 2023	Mar. 06, 2023
Class of Warrant or Right [Line Items]
Number of shares called by warrants (in shares)		160,000
Term Loan Warrants Issued March 2023
Class of Warrant or Right [Line Items]
Number of shares called by warrants (in shares)		80,000
Exercise price (in dollars per share)		$ 0.25
Term Loan Warrants Issued December2023
Class of Warrant or Right [Line Items]
Number of shares called by warrants (in shares)	80,000
Exercise price (in dollars per share)	$ 0.25

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Antidilutive Securities (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	1,089,905	1,225,840	1,089,905	1,225,840
Public warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	500,000	500,000	500,000	500,000
Private warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	13,300	13,300	13,300	13,300
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	290,858	336,345	290,858	336,345
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	285,747	296,195	285,747	296,195
Warrants issued in connection with 15th amendment to Credit Agreement
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	0	80,000	0	80,000

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Thousands					1 Months Ended	3 Months Ended	9 Months Ended
	Oct. 11, 2024 USD ($)	Oct. 10, 2024 USD ($) day Installment shares	Oct. 07, 2024 USD ($)	May 20, 2024 USD ($) day Installment shares	Aug. 31, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Oct. 24, 2024 shares	Dec. 31, 2023 USD ($)
Loss Contingencies [Line Items]
Total consideration				$ 12,000
Accrued litigation settlement liability, current						$ 2,250	$ 2,250
Accrued litigation settlement liability, noncurrent						750	750
Litigation settlement, loss						3,000	3,000
Cash component				8,500
Additional component				$ 3,500
Accrued litigation settlement						5,805	5,805		$ 12,000
Litigation insurance reimbursement receivable						$ 0	$ 0		5,000
Subsequent Event
Loss Contingencies [Line Items]
Total consideration			$ 3,000
Installment period			2 years
Payments for legal settlements	$ 1,500
Settled Litigation
Loss Contingencies [Line Items]
Accrued litigation settlement									$ 12,000
Delaware Action
Loss Contingencies [Line Items]
Payments for legal settlements					$ 3,500
Payments for legal settlements, by insurer					$ 5,000
Delaware Action | Subsequent Event
Loss Contingencies [Line Items]
Additional component		$ 2,800
Litigation settlement, shares issuable | shares		275,845
Number of consecutive trading days | day		10
Maximum extend of settlement shares (in shares) | shares		108,048						167,797
Number of installments | Installment		2
New York Action
Loss Contingencies [Line Items]
Number of consecutive trading days | day				10
Maximum extend of settlement shares (in shares) | shares				43,839
Number of installments | Installment				2
Litigation settlement additional component				$ 700
New York Action | Litigation Settlement, Period One
Loss Contingencies [Line Items]
Installment period				6 months
New York Action | Litigation Settlement, Period Two
Loss Contingencies [Line Items]
Installment period				12 months

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Values (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Carrying amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term Loan	$ 28,781	$ 25,503
Debt	95,887	85,850
Carrying amount | RLOC
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
RLOC	67,106	60,347
Fair value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Term Loan	33,374	33,900
Debt	103,150	98,531
Fair value | RLOC | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
RLOC	$ 69,776	$ 64,631

Fair Value Measurements - Sum_2

Fair Value Measurements - Summary of Warrant Liability Activity (Details) - Fair Value, Recurring - Warrant Liability $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 95
Change in fair value	(22)
Ending balance	73
Level 1
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	93
Change in fair value	(22)
Ending balance	71
Level 2
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	0
Change in fair value	0
Ending balance	0
Level 3
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	2
Change in fair value	0
Ending balance	$ 2

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ in Thousands				1 Months Ended
	Oct. 11, 2024	Oct. 07, 2024	May 20, 2024	Aug. 31, 2024	Oct. 24, 2024	Oct. 10, 2024	Sep. 30, 2024
Subsequent Event [Line Items]
Total consideration			$ 12,000
Accrued litigation settlement liability, current							$ 2,250
Accrued litigation settlement liability, noncurrent							$ 750
Subsequent Event
Subsequent Event [Line Items]
Total consideration		$ 3,000
Payments for legal settlements	$ 1,500
Installment period		2 years
Delaware Action
Subsequent Event [Line Items]
Payments for legal settlements				$ 3,500
Delaware Action | Subsequent Event
Subsequent Event [Line Items]
Maximum extend of settlement shares (in shares)					167,797	108,048