Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 07, 2023 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-39119 | |
Entity Registrant Name | Leafly Holdings, Inc. /DE | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-2266022 | |
Entity Address, Address Line One | 113 Cherry Street, PMB 88154 | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98104-2205 | |
City Area Code | 206 | |
Local Phone Number | 455-9504 | |
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 | 44,494,659 | |
Entity Central Index Key | 0001785592 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Common Stock, $0.0001 Par Value | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.0001 Par Value | |
Trading Symbol | LFLY | |
Security Exchange Name | NASDAQ | |
Warrants, exercisable for shares of common stock at an exercise price of $11.50 per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Warrants, exercisable for shares of common stockat an exercise price of $11.50 per share | |
Trading Symbol | LFLYW | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 14,118 | $ 24,594 |
Accounts receivable, net of allowance for doubtful accounts of $1,404 and $908, respectively | 3,589 | 3,298 |
Prepaid expenses and other current assets | 3,186 | 1,792 |
Restricted cash | 360 | 360 |
Total current assets | 21,253 | 30,044 |
Property, equipment, and software, net | 2,649 | 2,285 |
Restricted cash - long-term portion | 251 | 248 |
Other assets | 75 | 135 |
Total assets | 24,228 | 32,712 |
Current liabilities | ||
Accounts payable | 962 | 1,625 |
Accrued expenses and other current liabilities | 3,838 | 6,235 |
Deferred revenue | 2,017 | 1,958 |
Total current liabilities | 6,817 | 9,818 |
Non-current liabilities | ||
Non-current portion of convertible promissory notes, net | 29,136 | 28,863 |
Total non-current liabilities | 29,293 | 29,301 |
Total liabilities | 36,110 | 39,119 |
Commitments and contingencies (Note 8) | ||
Stockholders' deficit | ||
Preferred stock: $0.0001 par value; 5,000 and 5,000 authorized; 0 and 0 issued and outstanding; aggregate liquidation preference of $0 and $0 at June 30, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock: $0.0001 par value; 200,000 and 200,000 authorized; 44,456 and 43,275 issued at June 30, 2023 and December 31, 2022, respectively | 4 | 4 |
Treasury stock: 3,081 and 3,081 shares held at June 30, 2023 and December 31, 2022, respectively | (31,663) | (31,663) |
Additional paid-in capital | 91,310 | 89,952 |
Accumulated deficit | (71,533) | (64,700) |
Total stockholders' deficit | (11,882) | (6,407) |
Total liabilities and stockholders' deficit | 24,228 | 32,712 |
Private warrants derivative liability | ||
Non-current liabilities | ||
Derivative liability | 121 | 182 |
Escrow shares derivative liability | ||
Non-current liabilities | ||
Derivative liability | 6 | 52 |
Stockholder earn-out rights derivative liability | ||
Non-current liabilities | ||
Derivative liability | $ 30 | $ 204 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,404 | $ 908 |
Preferred stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Preferred stock, aggregate liquidation preference | $ 0 | $ 0 |
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 44,456,000 | 43,275,000 |
Treasury stock (in shares) | 3,081,000 | 3,081,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 10,675 | $ 12,050 | $ 21,924 | $ 23,470 |
Cost of revenue | 1,238 | 1,441 | 2,584 | 2,896 |
Gross profit | 9,437 | 10,609 | 19,340 | 20,574 |
Operating expenses | ||||
Sales and marketing | 2,852 | 8,112 | 7,763 | 15,126 |
Product development | 2,320 | 4,056 | 5,600 | 7,521 |
General and administrative | 5,016 | 7,310 | 11,676 | 14,241 |
Total operating expenses | 10,188 | 19,478 | 25,039 | 36,888 |
Loss from operations | (751) | (8,869) | (5,699) | (16,314) |
Interest expense, net | (724) | (717) | (1,437) | (1,414) |
Change in fair value of derivatives | 14 | 24,397 | 281 | 14,000 |
Other income (expense), net | 25 | (52) | 22 | (889) |
Net (loss) income | $ (1,436) | $ 14,759 | $ (6,833) | $ (4,617) |
Net (loss) income per share: | ||||
Basic (in usd per share) | $ (0.04) | $ 0.39 | $ (0.17) | $ (0.13) |
Diluted (in usd per share) | $ (0.04) | $ 0.37 | $ (0.17) | $ (0.13) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 39,509 | 37,415 | 39,109 | 35,097 |
Diluted (in shares) | 39,509 | 42,041 | 39,109 | 35,097 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) shares in Thousands, $ in Thousands | Total | 2021 Notes | Preferred Stock | Common Stock | Common Stock 2021 Notes | Treasury Stock | Additional Paid-In Capital | Additional Paid-In Capital 2021 Notes | Accumulated Deficit |
Balance at the beginning (in shares) at Dec. 31, 2021 | 6,140 | 25,086 | 0 | ||||||
Balance at the beginning at Dec. 31, 2021 | $ (8,572) | $ 1 | $ 3 | $ 0 | $ 61,194 | $ (69,770) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (19,376) | (19,376) | |||||||
Stock-based compensation | 1,924 | 1,924 | |||||||
Exercise of stock options (in shares) | 114 | ||||||||
Exercise of stock options | 127 | 127 | |||||||
Conversion of stock (in shares) | (6,140) | 6,140 | 4,128 | ||||||
Conversion of stock | $ 33,024 | $ (1) | $ 1 | $ 33,024 | |||||
Merger and recapitalization, net of fees (in shares) | 2,007 | ||||||||
Merger and recapitalization, net of fees | 27,997 | 27,997 | |||||||
Stockholder contribution for debt issuance costs | 924 | 924 | |||||||
Escrow shares derivative liability (in shares) | 1,625 | ||||||||
Escrow shares derivative liability | (6,867) | (6,867) | |||||||
Private warrants derivative liability | (3,916) | (3,916) | |||||||
Forward share purchase agreement derivative liability (in shares) | 3,861 | ||||||||
Forward share purchase agreement derivative liability | (14,170) | (14,170) | |||||||
Stockholder earnout rights derivative liability | (26,131) | (26,131) | |||||||
Balance at the end (in shares) at Mar. 31, 2022 | 0 | 42,961 | 0 | ||||||
Balance at the end at Mar. 31, 2022 | (15,036) | $ 0 | $ 4 | $ 0 | 74,106 | (89,146) | |||
Balance at the beginning (in shares) at Dec. 31, 2021 | 6,140 | 25,086 | 0 | ||||||
Balance at the beginning at Dec. 31, 2021 | (8,572) | $ 1 | $ 3 | $ 0 | 61,194 | (69,770) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (4,617) | ||||||||
Balance at the end (in shares) at Jun. 30, 2022 | 0 | 42,990 | 0 | ||||||
Balance at the end at Jun. 30, 2022 | 217 | $ 0 | $ 4 | $ 0 | 74,600 | (74,387) | |||
Balance at the beginning (in shares) at Mar. 31, 2022 | 0 | 42,961 | 0 | ||||||
Balance at the beginning at Mar. 31, 2022 | (15,036) | $ 0 | $ 4 | $ 0 | 74,106 | (89,146) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 14,759 | 14,759 | |||||||
Stock-based compensation | 464 | 464 | |||||||
Exercise of stock options (in shares) | 29 | ||||||||
Exercise of stock options | 30 | 30 | |||||||
Balance at the end (in shares) at Jun. 30, 2022 | 0 | 42,990 | 0 | ||||||
Balance at the end at Jun. 30, 2022 | 217 | $ 0 | $ 4 | $ 0 | 74,600 | (74,387) | |||
Balance at the beginning (in shares) at Dec. 31, 2022 | 0 | 43,275 | (3,081) | ||||||
Balance at the beginning at Dec. 31, 2022 | (6,407) | $ 0 | $ 4 | $ (31,663) | 89,952 | (64,700) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (5,397) | (5,397) | |||||||
Stock-based compensation | 658 | 658 | |||||||
Issuance of Common Stock under ESPP (in shares) | 289 | ||||||||
Issuance of Common Stock under ESPP | 120 | 120 | |||||||
Issuance of Common Stock upon vesting of restricted stock units (in shares) | 285 | ||||||||
Balance at the end (in shares) at Mar. 31, 2023 | 0 | 43,849 | (3,081) | ||||||
Balance at the end at Mar. 31, 2023 | (11,026) | $ 0 | $ 4 | $ (31,663) | 90,730 | (70,097) | |||
Balance at the beginning (in shares) at Dec. 31, 2022 | 0 | 43,275 | (3,081) | ||||||
Balance at the beginning at Dec. 31, 2022 | (6,407) | $ 0 | $ 4 | $ (31,663) | 89,952 | (64,700) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (6,833) | ||||||||
Balance at the end (in shares) at Jun. 30, 2023 | 0 | 44,456 | (3,081) | ||||||
Balance at the end at Jun. 30, 2023 | (11,882) | $ 0 | $ 4 | $ (31,663) | 91,310 | (71,533) | |||
Balance at the beginning (in shares) at Mar. 31, 2023 | 0 | 43,849 | (3,081) | ||||||
Balance at the beginning at Mar. 31, 2023 | (11,026) | $ 0 | $ 4 | $ (31,663) | 90,730 | (70,097) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (1,436) | (1,436) | |||||||
Stock-based compensation | 580 | 580 | |||||||
Issuance of Common Stock upon vesting of restricted stock units (in shares) | 607 | ||||||||
Balance at the end (in shares) at Jun. 30, 2023 | 0 | 44,456 | (3,081) | ||||||
Balance at the end at Jun. 30, 2023 | $ (11,882) | $ 0 | $ 4 | $ (31,663) | $ 91,310 | $ (71,533) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (6,833) | $ (4,617) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 421 | 149 |
Stock-based compensation expense | 1,238 | 2,388 |
Bad debt expense, net of recoveries | 1,410 | 640 |
Loss on disposition of assets | 9 | 0 |
Noncash amortization of debt discount | 273 | 233 |
Noncash interest expense associated with convertible debt | 0 | 243 |
Noncash change in fair value of derivatives | (281) | (14,000) |
Other | (6) | 13 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,701) | (687) |
Prepaid expenses and other current assets | (1,334) | (3,977) |
Accounts payable | (663) | 1,456 |
Accrued expenses and other current liabilities | (2,399) | (713) |
Deferred revenue | 59 | 492 |
Net cash used in operating activities | (9,807) | (18,380) |
Cash flows from investing activities | ||
Additions of property, equipment, and software | (788) | (1,415) |
Net cash used in investing activities | (788) | (1,415) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 0 | 157 |
Proceeds from convertible promissory notes | 0 | 29,374 |
Proceeds from business combination placed in escrow and restricted | 0 | 39,032 |
Trust proceeds received from recapitalization at closing | 0 | 582 |
Issuance of common Stock under ESPP | 120 | 0 |
Transaction costs associated with recapitalization | 0 | (10,761) |
Advances (repayments) of related party payables | 2 | (18) |
Net cash provided by financing activities | 122 | 58,366 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (10,473) | 38,571 |
Cash, cash equivalents, and restricted cash, beginning of period | 25,202 | 28,695 |
Cash, cash equivalents, and restricted cash, end of period | 14,729 | 67,266 |
Supplemental disclosure of non-cash financing activities | ||
Stockholder contribution for debt issuance costs | 0 | 924 |
Conversion of promissory notes into common stock | 0 | 33,024 |
Issuance of forward share purchase agreements | 0 | 14,170 |
Issuance of private warrants | 0 | 3,916 |
Issuance of sponsor shares subject to earn-out conditions | 0 | 6,867 |
Issuance of stockholder earn-out rights | $ 0 | $ 26,131 |
Description of the Business and
Description of the Business and Merger | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business and Merger | NOTE 1 — Description of the Business and Merger Description of the Business Leafly Holdings, Inc. (“Leafly” or “the Company”) is a leading online cannabis discovery marketplace and resource for cannabis consumers. Leafly provides an information resource platform with a deep library of content, including detailed information about cannabis strains, retailers and current events. Leafly was incorporated in the state of Delaware on June 20, 2019 and is headquartered in Seattle, Washington. The Company has three wholly-owned subsidiaries, Leafly Canada Ltd., Leafly Deutschland GmbH and Leafly, LLC (“Legacy Leafly”). Legacy Leafly is the accounting predecessor of Leafly. The accompanying consolidated financial statements include the financial results of the Company and its wholly-owned subsidiaries. Merger with Merida On February 4, 2022, Leafly consummated the previously announced mergers and related transactions (collectively, the “Merger”) pursuant to the Agreement and Plan of Merger dated August 9, 2021 and amended on September 8, 2021 and on January 11, 2022 (as amended, the “Merger Agreement”). Legacy Leafly (formerly known as Leafly Holdings, Inc.) entered into the Merger Agreement with Merida Merger Corp. I (“Merida”), Merida Merger Sub, Inc., a Washington corporation (“Merger Sub I”) and Merida Merger Sub II, LLC, a Washington limited liability company (“Merger Sub II” and, together with Merger Sub I, the “Merger Subs”). Merger Sub I merged with and into Legacy Leafly, with Legacy Leafly surviving as a wholly-owned subsidiary of Merida, and following the initial Merger and as part of a single integrated transaction with the initial Merger, Legacy Leafly merged with and into Merger Sub II, with Merger Sub II surviving as a wholly-owned subsidiary of Merida. As a result of these Mergers, Legacy Leafly became a wholly owned subsidiary of Merida and was renamed Leafly, LLC, Merida was renamed Leafly Holdings, Inc. (“New Leafly”), and the securityholders of Legacy Leafly became security holders of New Leafly. We sometimes refer to the Mergers described above and the other transactions contemplated by the Merger Agreement and the other agreements being entered into by Merida and Legacy Leafly in connection with the Mergers as the “Business Combination” and to Merida following the Business Combination as “New Leafly.” While the legal acquirer in the Business Combination is Merida, for financial accounting and reporting purposes under accounting principles generally accepted in the United States of America (“GAAP”), Legacy Leafly is the accounting acquirer with the Merger accounted for as a “reverse recapitalization.” A reverse recapitalization does not result in a new basis of accounting, and the financial statements of the combined entity represent the continuation of the financial statements of Legacy Leafly. Under this accounting method, Merida is treated as the “ acquired ” company and Legacy Leafly is the accounting acquirer, with the transaction treated as a recapitalization of Legacy Leafly. Merida’s assets, liabilities and results of operations were consolidated with Legacy Leafly’s beginning on the date of the Business Combination. Except for certain derivative liabilities, the assets and liabilities of Merida were recognized at historical cost (which is consistent with carrying value) and were not material, with no goodwill or other intangible assets recorded. The derivative liabilities, which are discussed in Notes 13 and 18 , were recorded at fair value. The consolidated assets, liabilities, and results of operations of Legacy Leafly became the historical financial statements, and operations prior to the closing of the Business Combination presented for comparative purposes are those of Legacy Leafly. Pre-Merger shares of common stock and preferred stock were converted to shares of common stock of the combined company using the conversion ratio of 0.3283 and for comparative purposes, the shares and net loss per share of Legacy Leafly, prior to the Merger, have been retroactively restated using the conversion ratio. |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 2 — Basis of Present ation and Significant Accounting Policies Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and should be read in conjunction with the Company's audited consolidated financial statements for the years ended December 31, 2022 and 2021, and Management’s Discussion and Analysis of Financial Condition and Results of Operations of Leafly for the year ended December 31, 2022, each of which was filed with the SEC on March 29, 2023 (the “2022 Financial Information”). These condensed consolidated financial statements are unaudited and, in management's opinion, include all adjustments, consisting of normal recurring estimates and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Actual results may differ from these estimates and assumptions. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations o f the SEC for interim reporting. All intercompany balances and transactions have been eliminated upon consolidation. Going Concern Evaluation Under the rules of ASC Subtopic 205-40 “Presentation of Financial Statements-Going Concern” (“ASC 205-40”), reporting companies are required to evaluate whether conditions and/or events raise substantial doubt about their ability to meet their future financial obligations as they become due within one year after the date that the financial statements are issued. This evaluation takes into account a company’s current available cash and projected cash needs over the one-year evaluation period but may not consider things beyond its control. Leafly has experienced revenue declines, incurred recurring operating losses, used cash from operations, and relied on the capital raised in the Business Combination to continue ongoing operations. These conditions, when considered in the aggregate, raise substantial doubt about Leafly’s ability to continue as a going concern within one year of the date these financial statements are issued. In response to these conditions, Leafly management took the following actions: • During the fourth quarter of 2022, Leafly implemented a restructuring plan, including a reduction in force reflecting primarily one-time severance and other employee-related termination benefits incurred during the fourth quarter of 2022. • During the three months ended March 31, 2023, Leafly announced a second restructuring plan further seeking to reduce recurring costs and identifying cost savings based on a reduction in force reflecting primarily one-time severance and other employee-related termination benefits incurred during the first quarter of 2023. After considering all available evidence, Leafly’s management determined that, based on the cost reduction measures outlined in both actions above, Leafly’s current positive working capital will be sufficient to meet its capital requirements for a period of at least 12 months from the date that these June 30, 2023 financial statements are issued. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported net (loss) income. Seasonality We may experience seasonality in our business, which we believe has moderate impacts on our overall revenue. In certain years, we've seen seasonal fluctuations that coincide with either federal holidays, generally in the fourth quarter, or industry holidays and events, generally in the spring. Our industry and business history is limited and therefore we can't be certain that these are known trends or that other trends may develop. Emerging Growth Company Status Leafly is an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act (“JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued until such time as those standards apply to private companies. The Company has elected to use this extended transition period. In providing this relief, the JOBS Act does not preclude the Company from adopting a new or revised accounting standard earlier than the time that such standard applies to private companies. Leafly will continue to use this relief until the earlier of the date that it (a) is no longer an EGC or (b) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenue and expenses in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates. Such estimates include those related to the fair value of derivative liabilities; the allowance for doubtful accounts; the valuation allowance for deferred income tax assets; the fair value of the convertible promissory notes; the estimate of capitalized software costs and useful life of capitalized software; and the fair value of equity issuances. Management bases its estimates on historical experience, knowledge of current events and actions it may undertake in the future that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. Significant Accounting Policies The unaudited interim financial statements should be read in conjunction with the Company's 2022 Financial Information, which describes the Company's significant accounting policies. There have been no material changes to the Company's significant accounting policies during the six months ended June 30, 2023 compared to our Annual Report on Form 10-K for the year ended December 31, 2022 . Recent Accounting Pronouncements Accounting Pronouncements Issued But Not Yet Adopted Management does not believe that there are any recently issued, but not yet effective, accounting standards that, if currently adopted, would have a material effect on the Company’s consolidated financial statements or related disclosures. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | NOTE 3 — Cash, Cash Equival ents, and Restricted Cash Cash, cash equivalents, and restricted cash consisted of the following: June 30, 2023 December 31, 2022 Cash and cash equivalents $ 14,118 $ 24,594 Restricted cash 360 360 Restricted cash - long-term portion 251 248 $ 14,729 $ 25,202 The restricted cash balances at June 30, 2023 and December 31, 2022 include $ 360 of cash maintained in escrow related to Forward Share Purchase Agreemen ts (“FPAs”). Effe ctive August 1, 2022, the FPA holders elected to have Leafly repurchase their remaining 3,081 shares covered by the FPAs for an aggregate repurchase price of $ 31,663 . As a result, the shares repurchased have been removed from Leafly's outstanding shares effective as of the date of purchase and placed into treasury. The FPA holders elected to have all but $ 360 disbursed from the escrow account and are able to claim the remainder any time until August 1, 2 023. The amount was distributed subsequent to June 30, 2023 ( Note 19 ). If unclaimed, the remaining funds in escrow would have been distributed to the Company. Additional information regarding the FPAs is included in Notes 13 and 18 . |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | NOTE 4 — Prepaid Expenses and Other Assets Prepaid expenses and other assets consist of the following: June 30, 2023 December 31, 2022 Prepaid subscriptions $ 697 $ 916 Prepaid insurance 2,204 533 Other prepaid assets 254 272 Other current assets 31 71 Subtotal, current portion 3,186 1,792 Prepaid expenses, long-term portion 75 135 Total $ 3,261 $ 1,927 |
Accounts Receivable, Net
Accounts Receivable, Net | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Net | NOTE 5 — Account s Receivable, Net Accounts receivable, net of $ 3,589 and $ 3,298 as of June 30, 2023 and December 31, 2022, respectively, consists of amounts due from customers less an allowance for doubtful accounts. The following table presents the allowance for doubtful accounts and the changes therein: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 1,091 $ 1,682 $ 908 $ 1,848 Add: provision for doubtful accounts, net of recoveries 685 764 1,410 640 Less: write-offs ( 372 ) ( 977 ) ( 914 ) ( 1,019 ) Balance, end of period $ 1,404 $ 1,469 $ 1,404 $ 1,469 |
Property, Equipment and Softwar
Property, Equipment and Software, Net | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Equipment, and Software, Net | NOTE 6 — Property, Equi pment, and Software, Net Property, equipment, and software consisted of the following: June 30, 2023 December 31, 2022 Furniture and equipment $ 706 $ 740 Capitalized internal-use software 3,095 2,310 3,801 3,050 Less: accumulated depreciation and amortization ( 1,152 ) ( 765 ) $ 2,649 $ 2,285 The Company recognized depreciation and amortization expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 24 $ 46 $ 47 $ 98 Amortization of capitalized internal-use software 202 51 374 51 Total depreciation and amortization $ 226 $ 97 $ 421 $ 149 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 7 — Accrued Expenses and Other Current Liabilities Accrued expenses consist of the following: June 30, 2023 December 31, 2022 Accrued bonuses $ 562 $ 1,309 Other employee-related liabilities 1,282 2,403 Accrued interest 1,000 1,000 Other accrued expenses 1 994 1,523 $ 3,838 $ 6,235 1. There are no individual items within this balance that exceed 10% of the total of the table . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 — Commitme nts and Contingencies In the normal course of business, the Company may receive inquiries or become involved in legal disputes regarding various litigation matters. In the opinion of management, any potential liabilities resulting from such claims would not have a material adverse effect on the Company’s consolidated financial statements. Leases The Company does not have any leases with an original term longer than 12 months as of June 30, 2023. The Company has short-term arrangements with immaterial rental obligations for office space. Nasdaq Notifications of Noncompliance On October 28, 2022, the Company received a letter from the staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) providing notification that the Company no longer complied with the $ 50 million in market value of listed securities standard for continued listing on the Nasdaq Global Market under Nasdaq Listing Rule 5450(b)(2)(A) and that the Company also did not comply with either of the two alternative standards of Listing Rule 5450(b), the equity standard and the total assets and total revenue standard. On April 19, 2023, Nasdaq approved the Company’s application to transfer the listing of its common stock and warrants from the Nasdaq Global Market to the Nasdaq Capital Market, effective April 21, 2023. The Company complies with the net income from continuing operations listing standard of the Nasdaq Capital Market, and the transfer of the listing resolved the October 28, 2022 noncompliance notification. On November 2, 2022, the Company received another letter from the Staff providing notification that, for 30 consecutive business days, the bid price of the Company’s common stock had closed below the $ 1.00 per share minimum bid price requirement for continued listing on Nasdaq under Nasdaq Listing Rule 5450(a)(1) (the “Bid Price Requirement”). To regain compliance, the closing bid price of the Company’s common stock must have been $ 1.00 per share or more per share for a minimum of ten consecutive business days at any time before May 1, 2023. On May 2, 2023, the Company received a letter from Nasdaq notifying it that the Company’s common stock would be subject to delisting from Nasdaq unless the Company timely requested a hearing before a Nasdaq Hearings Panel (the “Panel”). On May 8, 2023, the Company timely requested a hearing before the Panel, and on May 11, 2023, the Company submitted a plan of compliance and requested an extension of time to regain compliance with the Bid Price Requirement (the “Request”). On May 23, 2023, the Company received a letter from the Panel confirming that the Request was granted and that the Company has until October 17, 2023 to effect a reverse stock split and until October 30, 2023 to regain compliance with the Bid Price Requirement, subject to meeting certain milestones including obtaining stockholder approval of a reverse stock split on or before July 12, 2023. On July 12, 2023 ( Note 19 ), at the Company’s Annual Meeting of Stockholders, the stockholders approved a proposal to effect a reverse stock split of the Company’s outstanding shares of common stock by a ratio of not less than 1 for 10 and not more than 1 for 25 at any time prior to the Company’s 2024 Annual Meeting of Stockholders, with the exact ratio to be set by the Leafly Board of Directors (the “Board”) in the future, if at all, within the above range in its sole discretion, without further approval or authorization of the Company’s stockholders. The Request stayed any further action by Nasdaq, during the remainder of the approved extension. |
Revenue and Contract Balances
Revenue and Contract Balances | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue and Contract Balances | NOTE 9 — Revenue and Contract Balances The following table presents the Company's revenue by service type: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Advertising 1 $ 10,554 $ 11,854 $ 21,740 $ 23,183 Other services 1 121 196 184 287 $ 10,675 $ 12,050 $ 21,924 $ 23,470 1. Amounts for the prior period have been reclassified to conform to the current period presentation. The following table presents the Company's revenue by geographic region: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States 1 $ 10,253 $ 11,076 $ 21,058 $ 21,602 All other countries 1 422 974 866 1,868 $ 10,675 $ 12,050 $ 21,924 $ 23,470 1. Amounts for the prior period have been reclassified to conform to the current period presentation. The following table presents the Company's revenue by state: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Arizona 20 % 20 % 20 % 19 % California 12 % 13 % 12 % 12 % Oregon 10 % 11 % 11 % 10 % No other state comprised 10% or more of Leafly’s revenue during the six months ended June 30, 2023 and 2022. We have a diversified set of customers; no single customer accounted for 10% or more of our revenue for the six months ended June 30, 2023 or 2022. The following table presents the Company's revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Over Time 1 Retail 2 $ 8,840 $ 9,065 $ 18,310 $ 18,244 Brands 3 1,280 1,745 2,642 3,309 10,120 10,810 20,952 21,553 Point in time 1 Brands 4 555 1,240 972 1,917 $ 10,675 $ 12,050 $ 21,924 $ 23,470 1. Amounts for the prior period have been reclassified to conform to the current period presentation. 2. Revenues from subscription services and display ads. 3. Revenues from brand profile subscriptions and digital media (including display ads and audience extension). 4. Revenues from channel advertising (including direct to consumer email). Revenues recognized over time are associated with software subscriptions, display ads and audience extension. Revenues recognized at a point in time are associated with branded content and channel advertising. There are no material variations in delivery and revenue recognition periods within the over time category. Contract liabilities consist of deferred revenue, which is recorded on the Consolidated Balance Sheets when the Company has received consideration, or has the right to receive consideration, in advance of transferring the performance obligations under the contract to the customer. The following table presents the Company's deferred revenue balances and changes therein: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 2,180 $ 2,566 $ 1,958 $ 1,975 Add: net increase in current period contract liabilities 1,710 1,591 1,932 2,239 Less: revenue recognized from beginning balance ( 1,873 ) ( 1,690 ) ( 1,873 ) ( 1,747 ) Balance, end of period $ 2,017 $ 2,467 $ 2,017 $ 2,467 A majority of the deferred revenue balance as of June 30, 2023 is expected to be recognized in the subsequent 12-month period. No other contract assets or liabilities are recorded on the Company’s Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10 — In come Taxes The Company’s effective tax rate was 0 % for the three and six months ended June 30, 2023 and 2022. The effective tax rate was lower than the U.S. federal statutory rate of 21% due to the Company’s full valuation allowance recorded against its deferred tax assets. The Company had net operating loss carryforwards (“NOLs”) for federal, state and foreign income tax purposes of approximately $ 85,430 , $ 60,478 and $ 5,801 , respectively, as of December 31, 2022 . The Company's state NOL will begin to expire in 2039 , and all of the Company's federal NOLs will last indefinitely. The Internal Revenue Code of 1986, as amended (the “Code”), imposes restrictions on the utilization of NOLs in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use NOLs may be limited as prescribed under Code Section 382 (“IRC Section 382”). Events which may cause limitations in the amount of the NOLs that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50 % over a three-year period. Utilization of the federal and state NOLs may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2023 and December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. Management believes all the income tax returns filed since inception remain open to examination by the major domestic and foreign taxing jurisdictions to which the Company is subject due to NOLs. |
Convertible Promissory Notes
Convertible Promissory Notes | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Convertible Promissory Notes | NOTE 11 — C onvertible Promissory Notes 2022 Notes Merida entered into a $ 30,000 convertible note purchase agreement (the “Note Purchase Agreement”) in January 2022, which Legacy Leafly subsequently guaranteed and joined as a party to the agreement on February 4, 2022 in connection with the Business Combination (the “2022 Notes”). Accordingly, post-Business Combination, the 2022 Notes are presented as a liability on Leafly's balance sheet, net of debt issuance costs and debt discount. The Company recognized debt issuance costs of $ 714 paid in cash, and a debt discount of $ 924 paid in shares transferred by Merida Holdings, LLC (the “Sponsor”) to the holders of the 2022 Notes upon issuance. The 2022 Notes bear interest at 8 % annually, paid in cash semi-annually in arrears on July 31 and January 31 of each year, and mature on January 31, 2025. The 2022 Notes are unsecured convertible senior notes due 2025. They are convertible at the option of the holders at any time before maturity at an initial conversion share price of $ 12.50 per $ 1,000 principal amount of 2022 Notes and per $ 1,000 of accrued but unpaid interest on any converted 2022 Notes. In addition, the Company may, at its election, force the conversion of the 2022 Notes on or after January 31, 2024, if the volume-weighted average trading price of the Company’s common stock exceeds $ 18.00 for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days. The Company also has the option, on or after January 31, 2023 and prior to the 40th trading day immediately before the maturity date and subject to the holders’ ability to optionally convert, to redeem all or a portion of the 2022 Notes at a cash redemption price equal to 100 % of the principal amount of the 2022 Notes, plus accrued and unpaid interest, if any. The holders of the 2022 Notes have the right to cause the Company to repurchase for cash all or a portion of the 2022 Notes held by such holder upon the occurrence of a “fundamental change” (as defined in the Note Purchase Agreement) or in connection with certain asset sales, in each case at a price equal to 100 % of par plus accrued and unpaid interest, if any. As of June 30, 2023, the net carrying amount of the 2022 Notes was $ 29,136 , which includes unamortized issuance costs and debt discount of $ 864 , which will be amortized over the remaining term. The estimated fair value of the convertible debt instruments was approximately $ 27,000 as of June 30, 2023. The fair value of the 2022 Notes was measured using the Bloomberg OVCV model and CNVI model which modifies the underlying OVCV program. These models incorporate inputs for volatility, Leafly’s stock price, time to maturity, the risk-free rate and Leafly’s credit spread, some of which are considered Level 3 inputs in the fair value hierarchy. 2021 Notes Legacy Leafly issued a series of convertible promissory notes in June 2021 totaling approximately $ 23,970 . In August 2021, Legacy Leafly issued additional convertible promissory notes totaling $ 7,500 to Merida Capital, an affiliate of Merida. (Both note issuances are collectively referred to below as the “2021 Notes”). The 2021 Notes bore interest at 8 % annually and were considered traditional convertible debt with the entire amount recognized as a liability (with no amount allocated to equity), reduced for direct issuance costs, with initial and subsequent recognition at amortized cost in accordance with the interest method. Unless converted, the entire balance of principal and accrued but unpaid interest was due on December 3, 2022. The 2021 Notes were contingently convertible upon the occurrence of certain events, to include a qualified financing, a non-qualified financing, or in a qualified public transaction. On February 4, 2022, in connection with the Business Combination, the 2021 Notes were converted to approximately 4,128 shares of Leafly common stock at the conversion price of approximately $ 2.63 , which was 80 % of the implied price per share of common stock in the Business Combination. Upon closing of the Business Combination, the shares of common stock then converted to shares of common stock of the combined company using the conversion ratio of 0.3283 , which was used for conversion of all Leafly securities. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 12 — Sto ckholders’ Deficit The Consolidated Statements of Changes in Stockholders' Deficit reflect the reverse recapitalization on February 4, 2022, as discussed in Note 1 . Since Legacy Leafly was determined to be the accounting acquirer in the Business Combination, all periods presented prior to consummation of the Business Combination reflect the historical activity and balances of Legacy Leafly (other than common and preferred stock and potentially issuable shares underlying stock options and convertible promissory notes, which have been retroactively restated). Common Stock On February 4, 2022, the Business Combination was consummated pursuant to the Merger Agreement. Prior to the Business Combination, Legacy Leafly's capital stock consisted of Series A preferred stock and common stock. Upon the consummation of the Business Combination, all issued and outstanding shares of Series A preferred stock converted to shares of nonredeemable common stock. In connection with the settlement of the FPAs ( Note 13 ), 25 shares of the Company’s common stock held by the Sponsor were canceled, according to an agreement between the Company and the Sponsor entered into upon execution of the FPAs. As of June 30, 2023, Leafly's authorized capital stock consisted of: • 200,000 shares of Leafly common stock, $ 0.0001 par value per share; and • 5,000 shares of Leafly preferred stock, $ 0.0001 par value per share. Sponsor Shares Subject to Earn-Out Conditions In accordance with the Merger Agreement, upon closing of the Business Combination, 1,625 of the shares of the Company’s common stock held by the Sponsor were placed in escrow and subjected to earn-out conditi ons (“Escrow Shares”). Of th ese Escrow Shares, 50 % will be released from escrow if and when the Company's common stock trades at or above $ 13.50 for 20 out of 30 consecutive trading days at any time during the two-year period following closing, and the remaining 50 % will be released from escrow if and when the Company's common stock trades at or above $ 15.50 for 20 out of 30 consecutive trading days at any time during the three-year period following closing. In addition, all 1,625 Escrow Shares will be released upon a change in control. We account for the Escrow Shares as derivative liabilities, remeasured to fair value on a recurring basis, with changes in fair value recorded to earnings. See Note 18 for additional information. Treasury Stock Effective August 1, 2022, the Company repurchased 3,081 shares of its common stock at a weighted-average price of $ 10.28 per share for a total of $ 31,663 , with $ 31,303 paid with restricted cash held in escrow at the time and $ 360 remaining in accrued expenses and other current liabilities on our consolidated balance sheets at June 30, 2023 and December 31, 2022. These repurchases were in settlement of the FPAs. See Notes 3 and 13 for additional information. Stockholder Earn-Out Rights Leafly stockholders, as of immediately prior to the closing of the Business Combination, were granted upon closing of the Business Combination, contingent rights to receive up to 5,429 shares of common st ock (the “Rights”) if the Company achieves certain earn-out conditions prior to the third anniversary of the Business Combination. We will account for the Rights as derivative liabilities, which we will remeasure to their current fair value as of the end of each reporting period, with changes in the fair value recorded to earnings. See Note 18 for additional information. The Rights will be earned and shares of common stock will be issued as follows: First Tranche Up to 2,715 shares will be issued if and when: • revenue for the year ended December 31, 2022 equaled or exceeded $ 65,000 (“first revenue target”), or • the date on which the volume-weighted average price of common stock for a period of at least 20 days out of 30 consecutive trading days ending on the trading day immediately prior to the date of determination is greater than or equal to $ 13.50 (“first target price”) during the two-year period beginning on the trading day after the closing date of the Merger (as adjusted for stock splits, reverse stock splits, stock dividends, reorganizations, recapitalizations, reclassifications, combinations, exchanges of shares or other like changes or transactions with respect to shares of common stock occurring at or after the closing of the Business Combination) (the “first target period”), or • a change of control occurs within the two years after the closing date of the Business Combination at the first target price or higher, or • a pro rata portion of 2,715 shares ( 50 %) if the revenue during the target period meets or exceeds 90 % of the first revenue target. Second Tranche Up to 2,715 shares will be issued if and when: • revenue for the year ending December 31, 2023 equals or exceeds $ 101,000 (“second revenue target”), or • the date on which the volume-weighted average price of common stock for a period of at least 20 days out of 30 consecutive trading days ending on the trading day immediately prior to the date of determination is greater than or equal to $ 15.50 (“second target price”) during the three-year period beginning on the trading day after the closing date of the Merger (as adjusted for stock splits, reverse stock splits, stock dividends, reorganizations, recapitalizations, reclassifications, combinations, exchanges of shares or other like changes or transactions with respect to shares of common stock occurring at or after the closing of the Business Combination) (the “second target period”), or • a change of control occurs within the three years after the closing date of the Business Combination at the second target price or higher, or • a pro rata portion of 2,715 ( 50 %) if the revenue during the second target period meets or exceeds 90 % of the second revenue target. If the second revenue target or second target price is met in full, the respective first revenue target or first target price, as applicable, will be deemed to have been met as well if it had not been met during the first target period. Preferred Stock The Board is authorized, subject to limitations prescribed by the law of the State of Delaware, to issue Leafly preferred stock from time to time in one or more series. The Board is authorized to establish the number of shares to be included in each such series and to fix the voting rights, if any, designations, powers, preferences and relative, participating, optional, special and other rights, if any, and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. The Board is able, without stockholder approval, to issue Leafly preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the Leafly common stock and could have anti-takeover effects. The ability of the Board to issue Leafly preferred stock without stockholder approval could have the effect of delaying, deferring or preventing a change of control of Leafly or the removal of existing management. Leafly did no t have any issued and outstanding shares of preferred stock as of June 30, 2023 or December 31, 2022 . |
Warrants and Forward Purchase S
Warrants and Forward Purchase Share Agreements | 6 Months Ended |
Jun. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Warrants and Forward Purchase Share Agreements | NOTE 13 — Warran ts and Forward Share Purchase Agreements Public Warrants At each of June 30, 2023 and December 31, 2022 , there were 6,501 warrants outstanding that had been included in the units issued in Merida’s initial public offering (the “Public Warrants”). E ach Public Warrant entitles the holder to purchase one share of common stock at an exercise price of $ 11.50 . Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants became exercisable 30 days after the completion of the Business Combination. No warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to such shares of common stock. Notwithstanding the foregoing, if a registration statement covering the shares of common stock issuable upon exercise of the Public Warrants is not effective within a specified period following the consummation of a merger, warrant holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants on a cashless basis. The Public Warrants will expire five years after the completion of a merger or earlier upon redemption or liquidation. Once the warrants become exercisable, the Company may redeem the Public Warrants: • in whole and not in part; • at a price of $ 0.01 per warrant; • upon not less than 30 days’ prior written notice of redemption; • if, and only if, the reported last sale price of the Company’s common stock equals or exceeds $ 18.00 per share for any 20 trading days within a 30 -trading day period commencing after the warrants become exercisable and ending on the third business day prior to the notice of redemption to the warrant holders; and • if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying the warrants. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. Private Warrants At each of June 30, 2023 and December 31, 2022 , there were 3,950 warrants outstanding that Merida had sold to the Sponsor and EarlyBirdCapital in a private placement that took place simultaneously with Merida’s initial public offeri ng (“the Private Warrants”). The Private Warrants are identical to the Public Warrants, except that the Private Warrants and the shares of common stock issuable upon the exercise of the Private Warrants were not transferable, assignable or salable until after the completion of the Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The exercise price and number of shares of common stock issuable upon exercise of the Private Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Private Warrants will not be adjusted for issuance of common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Private Warrants. We account for the Private Warrants as derivative liabilities, remeasured to fair value on a recurring basis, with changes in the fair value recorded to earnings. See Note 18 for additional information. Forward Share Purchase Agreements In December 2021 and January 2022, the Company entered into four separate FPAs with certain investors. The FPAs allowed the investors to sell and transfer common stock held by the investors, not to exceed a total of 4,000 shares in aggregate, to the Company in exchange for cash. The price to be paid by the Company was initially $ 10.16 per share for up to 2,600 shares and $ 10.01 per share for up to 1,400 shares. As required by the FPAs, $ 39,032 of cash was placed into escrow upon closing of the Business Combination, to be used for the share purchases. If the FPAs were not exercised by the holders within their terms of three months post-Business Combination closing, the associated funds were to be released from escrow to the Company. We account for the FPAs as derivative liabilities, remeasured to fair value on a recurring basis, with changes in the fair value recorded to earnings. On May 3, 2022, Leafly and the holders entered into amendments to the FPAs (the “Amended FPAs”). The Amended FPAs modified the price at which the applicable holder has the right, but not the obligation, to have Leafly repurchase certain shares held by the applicable holder as of the closing of the Business Combination and not later sold into the market to a price of $ 10.16 per share (with respect to 686 of the shares subject to the Amended FPAs) and $ 10.31 per share (with respect to 2,404 of the shares subject to the Amended FPAs). The Amended FPAs also modified the date by which such holders may elect to have Leafly repurchase their shares to August 1, 2022. In connection with the Amended FPAs, certain amendments were also made to the escrow agreements in respect of the escrow accounts. During the year ended December 31, 2022, a to tal of $ 8,089 was released from the escrow accounts due to the FPA holders selling shares in the open market, which was accordingly reclassified on the Company's balance sheet from restricted cash to cash. Effective August 1, 2022, the FPA holders elected to have Leafly repurchase their remaining 3,081 shares covered by the FPAs for an aggregate repurchase price of $ 31,663 . As a result, the shares repurchased have been removed from Leafly's outstanding shares effective as of the date of purchase and placed into treasury. The FPA holders elected to have all but $ 360 disbursed from the escrow account and are able to claim the remainder any time until August 1, 2023. If unclaimed, the remaining funds in escrow will be distributed to the Company. Also, in connection with the settlement, 25 shares of the Company’s common stock held by the Sponsor were canceled, according to an agreement between the Company and the Sponsor entered into upon execution of the FPAs. |
Equity Incentive and Other Plan
Equity Incentive and Other Plans | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive and Other Plans | NOTE 14 — Equity Inc entive and Other Plans The Company currently has four equity plans: the New Leafly 2021 Equity Incentive Plan (the “2021 Plan”), the Legacy Leafly 2018 Equity Incentive Plan (the “2018 Plan”), the New Leafy Earn-Out Plan (the “Earn-Out Plan”), and the New Leafly 2021 Employee Stock Purchase Plan (the “ESPP”). Activity under the 2021 Plan and the ESPP are detailed below. There were no options or other equity awards granted under the 2018 Plan or the Earn-Out Plan during the six months ended June 30, 2023. Stock-Based Compensation 2021 Plan The 2021 Plan became effective immediately upon closing of the Business Combination. Pursuant to the 2021 Plan, 4,502 shares of common stock were initially reserved for issuance. During the term of the 2021 Plan, the number of shares of common stock thereunder automatically increases on each January 1, commencing on January 1, 2023, and ending on (and including) January 1, 2031, by the lesser of (i) 10 % of the fully diluted shares of common stock as of the last day of the preceding fiscal year and (ii) 4,502 shares (adjusted pursuant to the terms of the 2021 Plan). Effective January 1, 2023, 4,416 shares of common stock were available for issuance under the 2021 Plan and 4,601 remained available at June 30, 2023. 2022 Awards In August 2022 and October 2022, the compensation committee of the Board and an authorized executive of the Company, as applicable, granted stock options to purchase an aggregate of approximately 102 shares of common stock at a weighted-average exercise price of $ 1.98 per share and granted an aggregate of 2,560 restricted stock units (”RSUs”) and performance stock units (”PSUs”). Of the PSUs granted, 683 were market-based awards made to executives with a grant date fair value of $ 0.04 per share with vesting based on achievement of a $ 1.0 billion market cap by February 4, 2026, and 137 were performance awards made to executives with a grant date fair value of $ 0.81 per share with vesting based in part on achievement of a fiscal year 2022 Adjusted EBITDA target, which was achieved. Prior to such grants, no grants had been made under the 2021 Plan. Leafly’s compensation committee approved the vesting of 137 PSUs awarded in 2022, which vested based on the achievement of the Company’s 2022 Adjusted EBITDA target, on March 13, 2023. 2023 Awards Leafly’s compensation committee approved the grant of 631 annual incentive plan RSUs on March 14, 2023, which vested over four months . See Note 19 for equity awards subsequent to June 30, 2023. Stock Options The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option pricing model. No options were granted under the 2021 Plan during the six months ended June 30, 2023 or 2022. Stock option activity under the 2021 Plan for the six months ended June 30, 2023 was as follows: Number of Weighted Average Aggregate Weighted Average Outstanding at January 1, 2023 101 $ 1.98 $ — 9.61 Forfeited or expired — 1.60 Outstanding at March 31, 2023 101 $ 1.98 Forfeited or expired ( 1 ) 1.92 Outstanding at June 30, 2023 100 $ 1.98 $ — 9.14 Vested and exercisable 33 $ 1.98 $ — 9.14 As of June 30, 2023 , there was $ 75 of total unrecognized compensation cost related to stock options granted under the 2021 Plan. That cost is expected to be recognized over a weighted-average period of 2.61 years. Restricted Stock Units and Performance Stock Units RSU and PSU activity under the 2021 Plan for the six months ended June 30, 2023 was as follows: Number of Weighted Average Total Fair Value Unvested at January 1, 2023 2,058 $ 1.30 Granted 631 0.48 $ 305 Vested ( 359 ) 0.94 $ 188 Forfeited ( 485 ) 1.00 Unvested at March 31, 2023 1,845 0.89 Vested ( 524 ) 0.59 $ 199 Forfeited ( 331 ) 0.93 Unvested at June 30, 2023 990 $ 1.03 As of June 30, 2023, there was $ 928 total unrecognized compensation cost related to unvested RSUs and $ 10 total unrecognized compensation cost related to market-based PSUs granted under the 2021 Plan. The total cost is expected to be recognized over a weighted-average period of 2.61 years. 2018 Plan The 2018 Plan became effective on April 17, 2018. The 2018 Plan terminated upon closing of the Business Combination in 2022, but then-outstanding options under the 2018 Plan remain outstanding pursuant to their terms, with adjustments to the number of shares and exercise prices to reflect the terms of the Business Combination. The fair value of each stock option award to employees is estimated on the date of grant using the Black-Scholes option pricing model. There were no grants made in 2023 or 2022 under the 2018 Plan. Stock option activity under the 2018 Plan for the periods presented was as follows: Number of Weighted Average Aggregate Weighted Average Outstanding at January 1, 2023 3,431 $ 1.60 Exercised — 0.40 Forfeited or expired ( 446 ) 1.40 Outstanding at March 31, 2023 2,985 $ 1.63 Forfeited or expired ( 513 ) 1.27 Outstanding at June 30, 2023 1 2,472 $ 1.71 $ 6 4.88 Vested and exercisable 1,380 $ 1.34 $ 6 5.58 1. Includes 1,416 and 1,056 awards accounted for as service-based and market-based options, respectively, that are vested, that the Company currently deems probable of vesting, or in the case of market-based options, that the Company is expensing so long as the respective service conditions are met. The market-based options will vest only if the price of the Company's common stock reaches a $ 1 billion market capitalization target for any 20 days during a 30 -day period on or before February 4, 2026. As of June 30, 2023, ther e was: (i) $ 423 of unrecognized compensation cost related to service-based 2018 Plan option awards, which is expected to be recognized over a remaining weighted-average service period of approximately 1.81 years; and (ii) $ 862 of unrecognized compensation cost related to market-based 2018 Plan option awards, which is expected to be recognized over a remaining weighted-average service period of approximately 0.81 years. Stock-Based Compensation Expense The following table presents the classification of stock-based compensation expense under the 2021 Plan and the 2018 Plan: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Sales and marketing $ 60 $ 26 $ 136 $ 60 Product development 97 19 206 37 General and administrative 423 419 896 2,291 $ 580 $ 464 $ 1,238 $ 2,388 2022 Option Modification Concurrent with the closing of the Business Combination, the vesting provisions of certain stock options previously granted in 2021 under the 2018 Plan to our Chief Executive Officer to purchase 2,917 shares of common stock were modified, and a corresponding charge of $ 1,366 was recorded during the three months ended March 31, 2022 to general and administrative expenses and additional paid-in capital. Earn-Out Plan The Earn-Out Plan became effective immediately upon closing of the Business Combination. Pursuant to the Earn-Out Plan, approximately 571 shares of common stock have been reserved for issuance to employees and certain other eligible parties in the form of RSUs. These RSUs will vest if the Company achieves certain thresholds prior to the third anniversary of the Merger. No RSUs have been awarded under the Earn-Out Plan as of June 30, 2023. Employee Stock Purchase Plan The ESPP became effective immediately upon closing of the Business Combination. Pursuant to the ESPP, 1,126 shares of common stock are initially reserved for issuance. During the term of the ESPP, the number of shares of common stock thereunder automatically increases on each January 1, commencing on January 1, 2023 and ending on (and including) January 1, 2031, by the lesser of (i) 2.5 % of the fully diluted shares of common stock as of the last day of the preceding fiscal year and (ii) 1,126 shares (as adjusted pursuant to the terms of the ESPP). Effective January 1, 2023, 1,104 shares of common stock were available for issuance under the ESPP and 815 remained available at June 30, 2023. On March 15, 2023, Leafly’s employees purchased 289 shares for a total purchase price of $ 120 . The Company's current offering period runs from March 16, 2023 through September 15, 2023. Defined Contribution Plan The Company recognized expense from matching contributions to the Company-sponsored defined contribution retirement (401k) plan as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 401(k) matching contributions $ 153 $ 215 $ 386 $ 459 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 15 — Related Pa rty Transactions In June 2021, Merida Capital, an affiliate of Merida, purchased a convertible promissory note totaling $ 1,000 . The note was issued as part of the existing series of 2021 Notes (see Note 11 ) and was subject to the same interest rate, maturity, and conversion terms. This note converted to shares of Leafly common stock upon closing of the Business Combination in February 2022, along with the other 2021 Notes. At December 31, 2022 , the Company owed $ 10 to two members of its Board, which is included in accrued expenses and other current liabilities on Leafly's consolidated balance sheet and was repaid prior to June 30, 2023 . |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | NOTE 16 — Net (Loss) Income Per Share Basic and diluted net (loss) income per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. Under the two-class method, basic net (loss) income per share attributable to common stockholders is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Shares repurchased and held in treasury by the Company are removed from the weighted-average number of shares of common stock outstanding as of the date of repurchase. The Company considers its preferred stock to be participating securities. As of June 30, 2023 and June 30, 2022 , the Company had 1,625 outstanding shares of common stock that are in escrow and subject to earn-out conditions and thus forfeiture, which do not meet the criteria for participating securities (see Note 12 for additional information). Net (loss) income is attributed to common stockholders and participating securities based on their participation rights. Net loss is not attributed to the preferred stock as the holders of the preferred stock do not have a contractual obligation to share in any losses. Diluted earnings per share attributable to common stockholders adjusts basic earnings per share for the potentially dilutive impact of non-participating shares of common stock that are subject to forfeiture, stock options, preferred stock, convertible notes, and other securities outstanding. Certain securities are antidilutive and as such, are excluded from the calculation of diluted earnings per share and disclosed separately. Because of the nature of the calculation, particular securities may be dilutive in some periods and anti-dilutive in other periods. The Class 1, 2, and 3 common shares presented below have been retroactively restated for all periods using the conversion ratio in connection with the Business Combination. The following table presents the computation of basic and diluted net (loss) income per share attributable to common stockholders, as a group, for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net (loss) income $ ( 1,436 ) $ 14,759 $ ( 6,833 ) $ ( 4,617 ) Income impact of convertible promissory notes — 600 — — Total undistributed (loss) income $ ( 1,436 ) $ 15,359 $ ( 6,833 ) $ ( 4,617 ) Weighted average shares outstanding 39,509 37,415 39,109 35,097 Dilutive effect of convertible promissory notes — 2,429 — — Dilutive effect of stock-based awards — 2,197 — — Common stock and common stock equivalents 39,509 42,041 39,109 35,097 Basic net (loss) income per share $ ( 0.04 ) $ 0.39 $ ( 0.17 ) $ ( 0.13 ) Diluted net (loss) income per share $ ( 0.04 ) $ 0.37 $ ( 0.17 ) $ ( 0.13 ) The following shares of common stock subject to certain instruments were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented as their effect would have been antidilutive (with figures recast using the conversion ratio for the Business Combination, as applicable): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares subject to warrants 10,451 10,451 10,451 10,451 Shares subject to convertible promissory notes 2,480 — 2,480 2,429 Shares subject to forward purchase agreements — 3,819 — 3,819 Escrow Shares 1,625 1,625 1,625 1,625 Shares subject to outstanding common stock options, RSUs and PSUs 3,825 1,105 4,336 1,105 Shares subject to stockholder earn-out rights 5,429 5,429 5,429 5,429 23,810 22,429 24,321 24,858 See Note 11 for additional information regarding convertible promissory notes, Note 12 for additional information regarding stockholder earn-out rights, preferred stock, and Escrow Shares, Note 13 for additional information regarding warrants, and Note 14 for additional information regarding stock options, RSUs and PSUs. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 17 — Segm ent Reporting Segment revenue and gross profit were as follows during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue: Retail $ 8,840 $ 9,065 $ 18,310 $ 18,244 Brands 1,835 2,985 3,614 5,226 Total revenue $ 10,675 $ 12,050 $ 21,924 $ 23,470 Gross profit: Retail $ 7,863 $ 8,075 $ 16,254 $ 16,214 Brands 1,574 2,534 3,086 4,360 Total gross profit $ 9,437 $ 10,609 $ 19,340 $ 20,574 Assets are not allocated to segments for internal reporting presentations, nor are depreciation and amortization. Geographic Areas The Company’s operations are primarily in the U.S. and to a lesser extent, in Canada. Refer to Note 9 for revenue classified by major geographic area. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 18 — Fair Valu e Measurements The Company follows the guidance in ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1 : Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 : Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3 : Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. The Company’s financial instruments include cash equivalents, restricted cash, accounts receivable from customers, accounts payable and accrued liabilities, all of which are typically short-term in nature. The Company believes that the carrying amounts of these financial instruments reasonably approximate their fair values due to their short-term nature. The following table presents information about the Company’s derivative liabilities that are measured at fair value on a recurring basis beginning February 4, 2022 (the date of closing of the Business Combination) when the derivative liabilities were assumed, and discloses the fair value hierarchy level of the valuation inputs the Company utilized to determine such fair value: Fair Value at Change in Fair Description Level June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 Three Months Ended Three Months Ended Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Private Warrants derivative liability 3 $ 121 $ 130 $ 182 $ 3,693 $ 7,989 $ 9 $ 4,296 $ 61 $ 223 Forward share purchase agreements derivative liability 1 3 — — — 17,763 7,452 — ( 10,311 ) 0 ( 3,593 ) Escrow Shares derivative liability 3 6 7 52 3,481 10,129 1 6,648 46 3,387 Stockholder earn-out rights derivative liability 3 30 34 204 12,148 35,912 4 23,764 174 13,983 Total $ 157 $ 171 $ 438 $ 37,085 $ 61,482 $ 14 $ 24,397 $ 281 $ 14,000 1. The forward share purchase agreements were settled effective August 1, 2022, at which time the fair value was $ 13,824 based on cash settlement. Assumptions used to determine the fair values are presented in the following sections: Private Warrants Derivative Liability The Private Warrants were valued using a Black-Scholes model and the following Level 3 inputs: June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 Exercise price $ 11.50 $ 11.50 $ 11.50 $ 11.50 $ 11.50 Stock price $ 0.29 $ 0.40 $ 0.65 $ 4.50 $ 8.28 Volatility 99.9 % 88.8 % 75.0 % 51.6 % 36.7 % Term (in years) 3.60 3.84 4.09 4.59 4.85 Risk-free rate 4.5 % 3.7 % 4.1 % 3.0 % 2.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The volatility input was calculated using a weighted average of historical volatilities from select benchmark companies and the volatility of the Public Warrants. The term input represents the maximum contractual term, though the Private Warrants may be exercised earlier. The interest rate input is the U.S. Treasury constant maturity rate for the instrument that most closely matches the term input. Forward Share Purchase Agreements Derivative Liability The FPAs were valued using a Black-Scholes model and the following Level 3 inputs: June 30, 2022 March 31, 2022 Exercise price - one agreement $ 10.31 $ 10.16 Exercise price - three agreements $ 10.16 $ 10.01 Stock price $ 4.50 $ 8.28 Volatility 70.4 % 72.6 % Term (in years) 0.09 0.09 Risk-free rate 1.3 % 0.2 % Dividend yield 0.0 % 0.0 % The volatility input was calculated using a weighted average of historical volatilities from select benchmark companies. The term input represents the maximum contractual term, though the shares underlying the FPAs were in some cases sold by the holders into the open market earlier (see Note 13 ). The interest rate input is the U.S. Treasury constant maturity rate for the instrument that most closely matches the term input. Escrow Shares Derivative Liability The Escrow Shares derivative liability was calculated using a Monte Carlo simulation and the following Level 3 inputs: June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 First stock price trigger $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 Second stock price trigger $ 15.50 $ 15.50 $ 15.50 $ 15.50 $ 15.50 Stock price $ 0.29 $ 0.40 $ 0.65 $ 4.50 $ 8.28 Volatility 98.6 % 87.5 % 86.0 % 68.0 % 63.0 % Term (in years) 1.60 1.84 2.09 2.59 2.85 Risk-free rate 5.1 % 4.1 % 4.4 % 3.0 % 2.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The volatility input was calculated using a weighted average of historical volatilities from select benchmark companies. The term input represents the maximum contractual term, though the shares may be released from escrow earlier. The interest rate input is the U.S. Treasury constant maturity rate for the instrument that most closely matches the term input. Stockholder Earn-Out Rights Derivative Liability The stockholder earn-out rights were valued using a Monte Carlo simulation and the following Level 3 inputs: June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 First stock price trigger $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 Second stock price trigger $ 15.50 $ 15.50 $ 15.50 $ 15.50 $ 15.50 First revenue trigger $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 Second revenue trigger $ 101,000 $ 101,000 $ 101,000 $ 101,000 $ 101,000 Stock price $ 0.29 $ 0.40 $ 0.65 $ 4.50 $ 8.28 Base year revenue assumption $ 44,000 $ 44,000 $ 48,000 $ 49,500 $ 55,500 Volatility 98.6 % 87.5 % 86.0 % 68.0 % 63.0 % Term (in years) 1.60 1.84 2.09 2.59 2.85 Risk-free rate 5.1 % 4.1 % 4.4 % 3.0 % 2.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The revenue assumption input relates to projected revenue for fiscal year 2022 (for the periods ended June 30, 2022 and March 31, 2022) and fiscal year 2023 (for the periods ended June 30, 2023 and March 31, 2023) and represents the midpoint of revenue guidance the Company had provided in the respective period. The volatility input was calculated using a weighted average of historical volatilities from select benchmark companies. The term input represents the maximum contractual term, though the stockholder earn-out rights may vest earlier. The interest rate input is the U.S. Treasury constant maturity rate for the instrument that most closely matches the term input. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19 — Subsequent Event s Restricted Cash On July 11, 2023, Leafly returned $ 360 of restricted cash to the FPA Holders pursuant to the terms of the FPAs ( Note 3 ). Reverse Stock Split On July 12, 2023, during the Company’s 2023 Annual Meeting of Stockholders, Leafly’s stockholders approved a proposal for a reverse stock split as part of the Company’s plan to regain compliance with the Bid Price Requirement under Nasdaq listing rules ( Note 8 ). The Board retains sole discretion to determine the ratio and effective date of the reverse stock split, if at all, at a later date. Equity Awards On July 25, 2023, Leafly awarded: 2,512 service-based RSUs to employees, which will vest over two years ; 655 RSUs to non-employee Board members, which will vest on August 20, 2023 ; and 473 PSUs to senior management, contingent upon fiscal year 2023 financial performance. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The interim condensed consolidated financial statements have been prepared in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and should be read in conjunction with the Company's audited consolidated financial statements for the years ended December 31, 2022 and 2021, and Management’s Discussion and Analysis of Financial Condition and Results of Operations of Leafly for the year ended December 31, 2022, each of which was filed with the SEC on March 29, 2023 (the “2022 Financial Information”). These condensed consolidated financial statements are unaudited and, in management's opinion, include all adjustments, consisting of normal recurring estimates and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Actual results may differ from these estimates and assumptions. The results of operations for any interim periods are not necessarily indicative of the results that may be expected for the entire fiscal year or any other interim period. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations o f the SEC for interim reporting. All intercompany balances and transactions have been eliminated upon consolidation. Going Concern Evaluation Under the rules of ASC Subtopic 205-40 “Presentation of Financial Statements-Going Concern” (“ASC 205-40”), reporting companies are required to evaluate whether conditions and/or events raise substantial doubt about their ability to meet their future financial obligations as they become due within one year after the date that the financial statements are issued. This evaluation takes into account a company’s current available cash and projected cash needs over the one-year evaluation period but may not consider things beyond its control. Leafly has experienced revenue declines, incurred recurring operating losses, used cash from operations, and relied on the capital raised in the Business Combination to continue ongoing operations. These conditions, when considered in the aggregate, raise substantial doubt about Leafly’s ability to continue as a going concern within one year of the date these financial statements are issued. In response to these conditions, Leafly management took the following actions: • During the fourth quarter of 2022, Leafly implemented a restructuring plan, including a reduction in force reflecting primarily one-time severance and other employee-related termination benefits incurred during the fourth quarter of 2022. • During the three months ended March 31, 2023, Leafly announced a second restructuring plan further seeking to reduce recurring costs and identifying cost savings based on a reduction in force reflecting primarily one-time severance and other employee-related termination benefits incurred during the first quarter of 2023. After considering all available evidence, Leafly’s management determined that, based on the cost reduction measures outlined in both actions above, Leafly’s current positive working capital will be sufficient to meet its capital requirements for a period of at least 12 months from the date that these June 30, 2023 financial statements are issued. |
Consolidation | All intercompany balances and transactions have been eliminated upon consolidation. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications had no effect on the reported net (loss) income. |
Seasonality | Seasonality We may experience seasonality in our business, which we believe has moderate impacts on our overall revenue. In certain years, we've seen seasonal fluctuations that coincide with either federal holidays, generally in the fourth quarter, or industry holidays and events, generally in the spring. Our industry and business history is limited and therefore we can't be certain that these are known trends or that other trends may develop. |
Emerging Growth Company Status | Emerging Growth Company Status Leafly is an emerging growth company (“EGC”), as defined in the Jumpstart Our Business Startups Act (“JOBS Act”). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued until such time as those standards apply to private companies. The Company has elected to use this extended transition period. In providing this relief, the JOBS Act does not preclude the Company from adopting a new or revised accounting standard earlier than the time that such standard applies to private companies. Leafly will continue to use this relief until the earlier of the date that it (a) is no longer an EGC or (b) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act. |
Use of Estimates | These condensed consolidated financial statements are unaudited and, in management's opinion, include all adjustments, consisting of normal recurring estimates and accruals necessary for a fair presentation of our consolidated cash flows, operating results, and balance sheets for the periods presented. Actual results may differ from these estimates and assumptions. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of revenue and expenses in the condensed consolidated financial statements and accompanying notes. On an ongoing basis, management evaluates its estimates. Such estimates include those related to the fair value of derivative liabilities; the allowance for doubtful accounts; the valuation allowance for deferred income tax assets; the fair value of the convertible promissory notes; the estimate of capitalized software costs and useful life of capitalized software; and the fair value of equity issuances. Management bases its estimates on historical experience, knowledge of current events and actions it may undertake in the future that management believes to be reasonable under the circumstances. Actual results may differ from these estimates and assumptions. |
Significant Accounting Policies | Significant Accounting Policies The unaudited interim financial statements should be read in conjunction with the Company's 2022 Financial Information, which describes the Company's significant accounting policies. There have been no material changes to the Company's significant accounting policies during the six months ended June 30, 2023 compared to our Annual Report on Form 10-K for the year ended December 31, 2022 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Issued But Not Yet Adopted Management does not believe that there are any recently issued, but not yet effective, accounting standards that, if currently adopted, would have a material effect on the Company’s consolidated financial statements or related disclosures. |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, cash equivalents, and restricted cash consisted of the following: June 30, 2023 December 31, 2022 Cash and cash equivalents $ 14,118 $ 24,594 Restricted cash 360 360 Restricted cash - long-term portion 251 248 $ 14,729 $ 25,202 |
Prepaid Expenses and Other As_2
Prepaid Expenses and Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Assets | Prepaid expenses and other assets consist of the following: June 30, 2023 December 31, 2022 Prepaid subscriptions $ 697 $ 916 Prepaid insurance 2,204 533 Other prepaid assets 254 272 Other current assets 31 71 Subtotal, current portion 3,186 1,792 Prepaid expenses, long-term portion 75 135 Total $ 3,261 $ 1,927 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Allowance for Doubtful Accounts | The following table presents the allowance for doubtful accounts and the changes therein: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 1,091 $ 1,682 $ 908 $ 1,848 Add: provision for doubtful accounts, net of recoveries 685 764 1,410 640 Less: write-offs ( 372 ) ( 977 ) ( 914 ) ( 1,019 ) Balance, end of period $ 1,404 $ 1,469 $ 1,404 $ 1,469 |
Property, Equipment, and Softwa
Property, Equipment, and Software, Net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property, equipment, and software consisted of the following: June 30, 2023 December 31, 2022 Furniture and equipment $ 706 $ 740 Capitalized internal-use software 3,095 2,310 3,801 3,050 Less: accumulated depreciation and amortization ( 1,152 ) ( 765 ) $ 2,649 $ 2,285 |
Schedule Of Depreciation and Amortization Expense | The Company recognized depreciation and amortization expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Depreciation expense $ 24 $ 46 $ 47 $ 98 Amortization of capitalized internal-use software 202 51 374 51 Total depreciation and amortization $ 226 $ 97 $ 421 $ 149 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses consist of the following: June 30, 2023 December 31, 2022 Accrued bonuses $ 562 $ 1,309 Other employee-related liabilities 1,282 2,403 Accrued interest 1,000 1,000 Other accrued expenses 1 994 1,523 $ 3,838 $ 6,235 1. There are no individual items within this balance that exceed 10% of the total of the table . |
Revenue and Contract Balances (
Revenue and Contract Balances (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company's revenue by service type: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Advertising 1 $ 10,554 $ 11,854 $ 21,740 $ 23,183 Other services 1 121 196 184 287 $ 10,675 $ 12,050 $ 21,924 $ 23,470 1. Amounts for the prior period have been reclassified to conform to the current period presentation. The following table presents the Company's revenue by geographic region: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 United States 1 $ 10,253 $ 11,076 $ 21,058 $ 21,602 All other countries 1 422 974 866 1,868 $ 10,675 $ 12,050 $ 21,924 $ 23,470 1. Amounts for the prior period have been reclassified to conform to the current period presentation. The following table presents the Company's revenue by state: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Arizona 20 % 20 % 20 % 19 % California 12 % 13 % 12 % 12 % Oregon 10 % 11 % 11 % 10 % The following table presents the Company's revenue by timing of recognition: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Over Time 1 Retail 2 $ 8,840 $ 9,065 $ 18,310 $ 18,244 Brands 3 1,280 1,745 2,642 3,309 10,120 10,810 20,952 21,553 Point in time 1 Brands 4 555 1,240 972 1,917 $ 10,675 $ 12,050 $ 21,924 $ 23,470 1. Amounts for the prior period have been reclassified to conform to the current period presentation. 2. Revenues from subscription services and display ads. 3. Revenues from brand profile subscriptions and digital media (including display ads and audience extension). 4. Revenues from channel advertising (including direct to consumer email). |
Schedule of Deferred Revenue | The following table presents the Company's deferred revenue balances and changes therein: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Balance, beginning of period $ 2,180 $ 2,566 $ 1,958 $ 1,975 Add: net increase in current period contract liabilities 1,710 1,591 1,932 2,239 Less: revenue recognized from beginning balance ( 1,873 ) ( 1,690 ) ( 1,873 ) ( 1,747 ) Balance, end of period $ 2,017 $ 2,467 $ 2,017 $ 2,467 |
Equity Incentive and Other Pl_2
Equity Incentive and Other Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | Stock option activity under the 2021 Plan for the six months ended June 30, 2023 was as follows: Number of Weighted Average Aggregate Weighted Average Outstanding at January 1, 2023 101 $ 1.98 $ — 9.61 Forfeited or expired — 1.60 Outstanding at March 31, 2023 101 $ 1.98 Forfeited or expired ( 1 ) 1.92 Outstanding at June 30, 2023 100 $ 1.98 $ — 9.14 Vested and exercisable 33 $ 1.98 $ — 9.14 Stock option activity under the 2018 Plan for the periods presented was as follows: Number of Weighted Average Aggregate Weighted Average Outstanding at January 1, 2023 3,431 $ 1.60 Exercised — 0.40 Forfeited or expired ( 446 ) 1.40 Outstanding at March 31, 2023 2,985 $ 1.63 Forfeited or expired ( 513 ) 1.27 Outstanding at June 30, 2023 1 2,472 $ 1.71 $ 6 4.88 Vested and exercisable 1,380 $ 1.34 $ 6 5.58 1. Includes 1,416 and 1,056 awards accounted for as service-based and market-based options, respectively, that are vested, that the Company currently deems probable of vesting, or in the case of market-based options, that the Company is expensing so long as the respective service conditions are met. The market-based options will vest only if the price of the Company's common stock reaches a $ 1 billion market capitalization target for any 20 days during a 30 -day period on or before February 4, 2026. |
Schedule of Restricted Stock Unit Activity | RSU and PSU activity under the 2021 Plan for the six months ended June 30, 2023 was as follows: Number of Weighted Average Total Fair Value Unvested at January 1, 2023 2,058 $ 1.30 Granted 631 0.48 $ 305 Vested ( 359 ) 0.94 $ 188 Forfeited ( 485 ) 1.00 Unvested at March 31, 2023 1,845 0.89 Vested ( 524 ) 0.59 $ 199 Forfeited ( 331 ) 0.93 Unvested at June 30, 2023 990 $ 1.03 |
Schedule of Stock-Based Compensation Expense | The following table presents the classification of stock-based compensation expense under the 2021 Plan and the 2018 Plan: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Sales and marketing $ 60 $ 26 $ 136 $ 60 Product development 97 19 206 37 General and administrative 423 419 896 2,291 $ 580 $ 464 $ 1,238 $ 2,388 |
Summary of Defined Contribution Retirement (401k) Plan | The Company recognized expense from matching contributions to the Company-sponsored defined contribution retirement (401k) plan as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 401(k) matching contributions $ 153 $ 215 $ 386 $ 459 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Computation Basic and Diluted Net (Loss) Income Per Share | The following table presents the computation of basic and diluted net (loss) income per share attributable to common stockholders, as a group, for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net (loss) income $ ( 1,436 ) $ 14,759 $ ( 6,833 ) $ ( 4,617 ) Income impact of convertible promissory notes — 600 — — Total undistributed (loss) income $ ( 1,436 ) $ 15,359 $ ( 6,833 ) $ ( 4,617 ) Weighted average shares outstanding 39,509 37,415 39,109 35,097 Dilutive effect of convertible promissory notes — 2,429 — — Dilutive effect of stock-based awards — 2,197 — — Common stock and common stock equivalents 39,509 42,041 39,109 35,097 Basic net (loss) income per share $ ( 0.04 ) $ 0.39 $ ( 0.17 ) $ ( 0.13 ) Diluted net (loss) income per share $ ( 0.04 ) $ 0.37 $ ( 0.17 ) $ ( 0.13 ) |
Schedule of Antidilutive Shares | The following shares of common stock subject to certain instruments were excluded from the computation of diluted net income per share attributable to common stockholders for the periods presented as their effect would have been antidilutive (with figures recast using the conversion ratio for the Business Combination, as applicable): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Shares subject to warrants 10,451 10,451 10,451 10,451 Shares subject to convertible promissory notes 2,480 — 2,480 2,429 Shares subject to forward purchase agreements — 3,819 — 3,819 Escrow Shares 1,625 1,625 1,625 1,625 Shares subject to outstanding common stock options, RSUs and PSUs 3,825 1,105 4,336 1,105 Shares subject to stockholder earn-out rights 5,429 5,429 5,429 5,429 23,810 22,429 24,321 24,858 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenue and Gross Profit | Segment revenue and gross profit were as follows during the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue: Retail $ 8,840 $ 9,065 $ 18,310 $ 18,244 Brands 1,835 2,985 3,614 5,226 Total revenue $ 10,675 $ 12,050 $ 21,924 $ 23,470 Gross profit: Retail $ 7,863 $ 8,075 $ 16,254 $ 16,214 Brands 1,574 2,534 3,086 4,360 Total gross profit $ 9,437 $ 10,609 $ 19,340 $ 20,574 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s derivative liabilities that are measured at fair value on a recurring basis beginning February 4, 2022 (the date of closing of the Business Combination) when the derivative liabilities were assumed, and discloses the fair value hierarchy level of the valuation inputs the Company utilized to determine such fair value: Fair Value at Change in Fair Description Level June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 Three Months Ended Three Months Ended Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 Private Warrants derivative liability 3 $ 121 $ 130 $ 182 $ 3,693 $ 7,989 $ 9 $ 4,296 $ 61 $ 223 Forward share purchase agreements derivative liability 1 3 — — — 17,763 7,452 — ( 10,311 ) 0 ( 3,593 ) Escrow Shares derivative liability 3 6 7 52 3,481 10,129 1 6,648 46 3,387 Stockholder earn-out rights derivative liability 3 30 34 204 12,148 35,912 4 23,764 174 13,983 Total $ 157 $ 171 $ 438 $ 37,085 $ 61,482 $ 14 $ 24,397 $ 281 $ 14,000 1. The forward share purchase agreements were settled effective August 1, 2022, at which time the fair value was $ 13,824 based on cash settlement. |
Schedule of Valuation Assumptions | The Private Warrants were valued using a Black-Scholes model and the following Level 3 inputs: June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 Exercise price $ 11.50 $ 11.50 $ 11.50 $ 11.50 $ 11.50 Stock price $ 0.29 $ 0.40 $ 0.65 $ 4.50 $ 8.28 Volatility 99.9 % 88.8 % 75.0 % 51.6 % 36.7 % Term (in years) 3.60 3.84 4.09 4.59 4.85 Risk-free rate 4.5 % 3.7 % 4.1 % 3.0 % 2.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The FPAs were valued using a Black-Scholes model and the following Level 3 inputs: June 30, 2022 March 31, 2022 Exercise price - one agreement $ 10.31 $ 10.16 Exercise price - three agreements $ 10.16 $ 10.01 Stock price $ 4.50 $ 8.28 Volatility 70.4 % 72.6 % Term (in years) 0.09 0.09 Risk-free rate 1.3 % 0.2 % Dividend yield 0.0 % 0.0 % The Escrow Shares derivative liability was calculated using a Monte Carlo simulation and the following Level 3 inputs: June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 First stock price trigger $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 Second stock price trigger $ 15.50 $ 15.50 $ 15.50 $ 15.50 $ 15.50 Stock price $ 0.29 $ 0.40 $ 0.65 $ 4.50 $ 8.28 Volatility 98.6 % 87.5 % 86.0 % 68.0 % 63.0 % Term (in years) 1.60 1.84 2.09 2.59 2.85 Risk-free rate 5.1 % 4.1 % 4.4 % 3.0 % 2.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % The stockholder earn-out rights were valued using a Monte Carlo simulation and the following Level 3 inputs: June 30, 2023 March 31, 2023 December 31, 2022 June 30, 2022 March 31, 2022 First stock price trigger $ 13.50 $ 13.50 $ 13.50 $ 13.50 $ 13.50 Second stock price trigger $ 15.50 $ 15.50 $ 15.50 $ 15.50 $ 15.50 First revenue trigger $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 Second revenue trigger $ 101,000 $ 101,000 $ 101,000 $ 101,000 $ 101,000 Stock price $ 0.29 $ 0.40 $ 0.65 $ 4.50 $ 8.28 Base year revenue assumption $ 44,000 $ 44,000 $ 48,000 $ 49,500 $ 55,500 Volatility 98.6 % 87.5 % 86.0 % 68.0 % 63.0 % Term (in years) 1.60 1.84 2.09 2.59 2.85 Risk-free rate 5.1 % 4.1 % 4.4 % 3.0 % 2.4 % Dividend yield 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % |
Description of the Business a_2
Description of the Business and Merger - Significant Sources and Uses of Cash (Details) | Feb. 04, 2022 |
Convertible Senior Notes | 2021 Notes | |
Schedule Of Reverse Recapitalization [Line Items] | |
Conversion ratio | 0.3283 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 14,118 | $ 24,594 | ||
Restricted cash | 360 | 360 | ||
Restricted cash - long-term portion | 251 | 248 | ||
Cash, cash equivalents, and restricted cash | $ 14,729 | $ 25,202 | $ 67,266 | $ 28,695 |
Cash, Cash Equivalents, and R_4
Cash, Cash Equivalents, and Restricted Cash - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | Aug. 01, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | Feb. 04, 2022 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 360 | $ 360 | ||
Common Stock | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Stock repurchased (in shares) | 3,081 | |||
Purchase of treasury stock | $ 31,663 | |||
Escrow deposit | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 360 | $ 360 | $ 39,032 | |
Escrow deposit | Common Stock | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 360 |
Prepaid Expenses and Other As_3
Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid subscriptions | $ 697 | $ 916 |
Prepaid insurance | 2,204 | 533 |
Other prepaid assets | 254 | 272 |
Other current assets | 31 | 71 |
Subtotal, current portion | 3,186 | 1,792 |
Prepaid expenses, long-term portion | 75 | 135 |
Total | $ 3,261 | $ 1,927 |
Accounts Receivable, Net - Narr
Accounts Receivable, Net - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable, net | $ 3,589 | $ 3,298 |
Accounts Receivable, Net - Sche
Accounts Receivable, Net - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance, beginning of period | $ 1,091 | $ 1,682 | $ 908 | $ 1,848 |
Add: provision for doubtful accounts, net of recoveries | 685 | 764 | 1,410 | 640 |
Less: write-offs | (372) | (977) | (914) | (1,019) |
Balance, end of period | $ 1,404 | $ 1,469 | $ 1,404 | $ 1,469 |
Property, Equipment, and Soft_2
Property, Equipment, and Software, Net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,801 | $ 3,050 |
Less: accumulated depreciation and amortization | (1,152) | (765) |
Property, equipment, and software, net | 2,649 | 2,285 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 706 | 740 |
Capitalized Internal Use Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 3,095 | $ 2,310 |
Property, Equipment, and Soft_3
Property, Equipment, and Software, Net - Schedule Of Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Table] | ||||
Depreciation expense | $ 24 | $ 46 | $ 47 | $ 98 |
Amortization of capitalized internal-use software | 202 | 51 | 374 | 51 |
Total depreciation and amortization | $ 226 | $ 97 | $ 421 | $ 149 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |||
Accrued bonuses | $ 562 | $ 1,309 | |
Other employee-related liabilities | 1,282 | 2,403 | |
Accrued interest | 1,000 | 1,000 | |
Other accrued expenses | [1] | 994 | 1,523 |
Accrued expenses and other current liabilities | $ 3,838 | $ 6,235 | |
[1] There are no individual items within this balance that exceed 10% of the total of the table |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Nasdaq $ / shares in Units, $ in Millions | Oct. 28, 2022 USD ($) $ / shares |
Securities, Market value | $ | $ 50 |
Minimum closing bid price | $ 1 |
Maximum [Member] | |
Share Price | $ 1 |
Revenue and Contract Balances -
Revenue and Contract Balances - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 10,675 | $ 12,050 | $ 21,924 | $ 23,470 |
Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,840 | 9,065 | 18,310 | 18,244 |
Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,835 | 2,985 | 3,614 | 5,226 |
Over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,120 | 10,810 | 20,952 | 21,553 |
Over Time | Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,840 | 9,065 | 18,310 | 18,244 |
Over Time | Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,280 | 1,745 | 2,642 | 3,309 |
Point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,675 | 12,050 | 21,924 | 23,470 |
Point in time | Brands | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 555 | 1,240 | 972 | 1,917 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,253 | 11,076 | 21,058 | 21,602 |
All other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 422 | $ 974 | $ 866 | $ 1,868 |
Arizona | Revenue | Geographic concentration risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 20% | 20% | 20% | 19% |
California | Revenue | Geographic concentration risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 12% | 13% | 12% | 12% |
Oregon | Revenue | Geographic concentration risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 10% | 11% | 11% | 10% |
Advertising | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 10,554 | $ 11,854 | $ 21,740 | $ 23,183 |
Other services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 121 | $ 196 | $ 184 | $ 287 |
Revenue and Contract Balances_2
Revenue and Contract Balances - Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Change in Contract with Customer, Liability [Roll Forward] | ||||
Balance, beginning of period | $ 2,180 | $ 2,566 | $ 1,958 | $ 1,975 |
Add: net increase in current period contract liabilities | 1,710 | 1,591 | 1,932 | 2,239 |
Less: revenue recognized from beginning balance | (1,873) | (1,690) | (1,873) | (1,747) |
Balance, end of period | $ 2,017 | $ 2,467 | $ 2,017 | $ 2,467 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | |||||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | ||
Unrecognized tax benefits, accrued interest and penalties | $ 0 | $ 0 | 0 | ||
Effective tax rate | 0% | 0% | 0% | 0% | |
Cumulative ownership change | 50% | 50% | |||
Federal | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforward | $ 85,430,000 | ||||
State | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards expire year begins | 2039 | ||||
Net operating loss carryforward | $ 60,478,000 | ||||
Foreign | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforward | $ 5,801,000 |
Convertible Promissory Notes (D
Convertible Promissory Notes (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | ||||
Feb. 04, 2022 $ / shares shares | Jan. 31, 2022 USD ($) Days $ / shares | Jun. 30, 2023 USD ($) | Aug. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | |
2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 1,000 | ||||
Convertible Senior Notes | 2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | 30,000 | ||||
Debt issuance costs | 714 | ||||
Debt discount | $ 924 | ||||
Interest rate | 8% | ||||
Debt conversion, converted instrument, amount | $ 1,000 | ||||
Conversion share price (in usd per share) | $ / shares | $ 12.50 | ||||
Stock price trigger (in usd per share) | $ / shares | $ 18 | ||||
Threshold trading days | Days | 20 | ||||
Threshold consecutive trading days | Days | 30 | ||||
Redemption price percentage | 100% | ||||
Repurchase price percentage | 100% | ||||
Net carrying amount | $ 29,136 | ||||
Unamortized issuance costs | 864 | ||||
Convertible Senior Notes | 2022 Notes | Level 3 | |||||
Debt Instrument [Line Items] | |||||
Fair value | $ 27,000 | ||||
Convertible Senior Notes | 2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 7,500 | $ 23,970 | |||
Interest rate | 8% | ||||
Conversion share price (in usd per share) | $ / shares | $ 2.63 | ||||
Conversion of stock (in shares) | shares | 4,128 | ||||
Percent of implied price per share | 80% | ||||
Conversion ratio | 0.3283 |
Stockholders' Deficit (Details)
Stockholders' Deficit (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | ||||
Aug. 01, 2022 USD ($) $ / shares shares | Feb. 04, 2022 USD ($) Days $ / shares shares | Jun. 30, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | Jun. 30, 2022 shares | |
Schedule Of Reverse Recapitalization [Line Items] | |||||
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 | |||
Common stock, par value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 | |||
Preferred stock, par value (in usd per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Preferred stock, issued (in shares) | 0 | 0 | |||
Preferred stock, outstanding (in shares) | 0 | 0 | |||
Common Stock | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Shares canceled | 25,000 | ||||
Stock repurchased (in shares) | 3,081,000 | ||||
Treasury stock (in usd per share) | $ / shares | $ 10.28 | ||||
Purchase of treasury stock | $ | $ 31,663 | ||||
Common Stock | Payment using Restricted Cash | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Purchase of treasury stock | $ | 31,303 | ||||
Common Stock | Remaining in Accrued Expenses and Other Current Liabilities | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Purchase of treasury stock | $ | $ 360 | ||||
Sponsor, escrow shares | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Earn-out shares (in shares) | 1,625,000 | 1,625,000 | 1,625,000 | ||
Leafly stockholders | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Earn-out shares (in shares) | 5,429,000 | ||||
Derivative instrument, period, one | Sponsor, escrow shares | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Earn-out shares, percentage of shares released from escrow | 50% | ||||
Earn-out shares, earn-out period, stock price trigger (in usd per share) | $ / shares | $ 13.50 | ||||
Earn-out shares, earn-out period | 2 years | ||||
Earn-out shares, threshold trading days | Days | 20 | ||||
Earn-out shares, threshold consecutive trading days | 30 days | ||||
Derivative instrument, period, one | Leafly stockholders | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Earn-out shares (in shares) | 2,715,000 | ||||
Earn-out shares, earn-out period, stock price trigger (in usd per share) | $ / shares | $ 13.50 | ||||
Earn-out shares, earn-out period | 2 years | ||||
Earn-out shares, revenue target | $ | $ 65,000 | ||||
Earn-out shares, threshold trading days | Days | 20 | ||||
Earn-out shares, threshold consecutive trading days | 30 days | ||||
Earn-out shares, pro rate percentage of shares | 50% | ||||
Earn-out shares, percentage of revenue target | 90% | ||||
Derivative instrument, period, two | Sponsor, escrow shares | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Earn-out shares, percentage of shares released from escrow | 50% | ||||
Earn-out shares, earn-out period, stock price trigger (in usd per share) | $ / shares | $ 15.50 | ||||
Earn-out shares, earn-out period | 3 years | ||||
Earn-out shares, threshold trading days | Days | 20 | ||||
Earn-out shares, threshold consecutive trading days | 30 days | ||||
Derivative instrument, period, two | Leafly stockholders | |||||
Schedule Of Reverse Recapitalization [Line Items] | |||||
Earn-out shares (in shares) | 2,715,000 | ||||
Earn-out shares, earn-out period, stock price trigger (in usd per share) | $ / shares | $ 15.50 | ||||
Earn-out shares, earn-out period | 3 years | ||||
Earn-out shares, revenue target | $ | $ 101,000 | ||||
Earn-out shares, threshold trading days | Days | 20 | ||||
Earn-out shares, threshold consecutive trading days | 30 days | ||||
Earn-out shares, pro rate percentage of shares | 50% | ||||
Earn-out shares, percentage of revenue target | 90% |
Warrants and Forward Purchase_2
Warrants and Forward Purchase Share Agreements - Warrants (Details) shares in Thousands | 6 Months Ended | |
Jun. 30, 2023 Days $ / shares shares | Dec. 31, 2022 shares | |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | shares | 6,501 | 6,501 |
Warrants, exercise price (in usd per share) | $ 11.50 | |
Warrants, exercisable, period from completion of business combination | 30 days | |
Warrants expiration period | 5 years | |
Redemption price of warrants (in usd per share) | $ 0.01 | |
Redemption notice period | 30 days | |
Redemption stock price trigger (in usd per share) | $ 18 | |
Redemption stock price threshold trading days | Days | 20 | |
Redemption stock price threshold consecutive trading days | 30 days | |
Private Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | shares | 3,950 | 3,950 |
Warrants and Forward Purchase_3
Warrants and Forward Purchase Share Agreements - Forward Share Purchase Agreements (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 2 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 01, 2022 USD ($) shares | Jan. 31, 2022 Agreement $ / shares shares | Jun. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | May 03, 2022 $ / shares shares | Feb. 04, 2022 USD ($) | |
Derivative [Line Items] | ||||||
Number of FPAs | Agreement | 4 | |||||
FPAs, number of shares (in shares) | shares | 4,000 | |||||
Restricted cash | $ 360 | $ 360 | ||||
FPAs, term | 3 months | |||||
Release of restricted cash from escrow | 8,089 | |||||
Common Stock | ||||||
Derivative [Line Items] | ||||||
Stock repurchased (in shares) | shares | 3,081 | |||||
Purchase of treasury stock | $ 31,663 | |||||
Shares canceled (in shares) | shares | (25) | |||||
Escrow deposit | ||||||
Derivative [Line Items] | ||||||
Restricted cash | $ 360 | $ 360 | $ 39,032 | |||
Escrow deposit | Common Stock | ||||||
Derivative [Line Items] | ||||||
Restricted cash | 360 | |||||
Restricted cash | $ 360 | |||||
Derivative instrument, period, one | ||||||
Derivative [Line Items] | ||||||
FPAs, number of shares (in shares) | shares | 2,600 | 2,404 | ||||
FPAs, exercise price (in usd per share) | $ / shares | $ 10.16 | $ 10.31 | ||||
Derivative instrument, period, two | ||||||
Derivative [Line Items] | ||||||
FPAs, number of shares (in shares) | shares | 1,400 | 686 | ||||
FPAs, exercise price (in usd per share) | $ / shares | $ 10.01 | $ 10.16 |
Equity Incentive and Other Pl_3
Equity Incentive and Other Plans - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||||
Jun. 30, 2023 USD ($) Plan shares | Mar. 14, 2023 shares | Feb. 04, 2022 USD ($) Days shares | Dec. 31, 2022 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) Plan $ / shares shares | Mar. 31, 2023 shares | Mar. 15, 2023 USD ($) shares | Jan. 01, 2023 shares | Oct. 31, 2022 USD ($) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of equity plans | Plan | 4 | 4 | |||||||||
Options granted (in shares) | 0 | ||||||||||
Options modified (in shares) | 2,917,000 | ||||||||||
Options modified, expense | $ | $ 1,366 | ||||||||||
Market-based awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost | $ | $ 10 | $ 10 | |||||||||
Employee Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance (in shares) | 1,126,000 | 1,104,000 | |||||||||
CommonStockCapitalSharesReservedForFutureIssuanceRemaining | 815,000 | 815,000 | |||||||||
Common stock reserved for issuance, annual increase percentage | 2.50% | ||||||||||
Common stock reserved for issuance, annual increase (in shares) | 1,126,000 | ||||||||||
2023 Awards | Restricted stock units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity instruments other than options, grants in period (in shares) | 631,000 | ||||||||||
Vesting Period | 4 months | ||||||||||
2022 Awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options granted (in shares) | 102,000 | ||||||||||
Granted (in usd per share) | $ / shares | $ 1.98 | ||||||||||
2022 Awards | Restricted stock units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity instruments other than options, grants in period (in shares) | 2,560,000 | ||||||||||
2022 Awards | Market-based awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost | $ | $ 683 | ||||||||||
Options granted, weighted average grant-date fair value (in usd per share) | $ / shares | $ 0.04 | ||||||||||
Market capitalization target | $ | $ 1,000,000 | ||||||||||
2022 Awards | Performance-based awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity instruments other than options, grants in period (in shares) | 137,000 | ||||||||||
Unrecognized compensation cost | $ | $ 137 | ||||||||||
Options granted, weighted average grant-date fair value (in usd per share) | $ / shares | $ 0.81 | ||||||||||
2021 Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance (in shares) | 4,502,000 | ||||||||||
Common stock reserved for issuance, annual increase percentage | 10% | ||||||||||
Common stock reserved for issuance, annual increase (in shares) | 4,502,000 | ||||||||||
Unrecognized compensation cost, recognition period | 2 years 7 months 9 days | ||||||||||
Options outstanding (in shares) | 100,000 | [1] | 101,000 | 100,000 | [1] | 101,000 | |||||
2021 Plan | Stock option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance (in shares) | 4,416,000 | ||||||||||
CommonStockCapitalSharesReservedForFutureIssuanceRemaining | 4,601,000 | 4,601,000 | |||||||||
Total unrecognized compensation cost | $ | $ 75 | $ 75 | |||||||||
2021 Plan | Restricted stock units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total unrecognized compensation cost | $ | $ 928 | $ 928 | |||||||||
2021 Plan | Employee Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Unrecognized compensation cost, recognition period | 2 years 7 months 9 days | ||||||||||
2018 Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Options outstanding (in shares) | 2,472,000 | [1] | 3,431,000 | 2,472,000 | [1] | 2,985,000 | |||||
2018 Plan | Service-based awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total unrecognized compensation cost | $ | $ 423 | $ 423 | |||||||||
Unrecognized compensation cost, recognition period | 1 year 9 months 21 days | ||||||||||
Options outstanding (in shares) | 1,416,000 | 1,416,000 | |||||||||
2018 Plan | Market-based awards | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Total unrecognized compensation cost | $ | $ 862 | $ 862 | |||||||||
Unrecognized compensation cost, recognition period | 9 months 21 days | ||||||||||
Options outstanding (in shares) | 1,056,000 | 1,056,000 | |||||||||
Market capitalization target | $ | $ 1,000,000 | ||||||||||
Market capitalization target, threshold days | Days | 20 | ||||||||||
Market capitalization target, threshold consecutive days | 30 days | ||||||||||
Earn-Out Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Common stock reserved for issuance (in shares) | 571,000 | ||||||||||
Earn-Out Plan | Restricted stock units | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Equity instruments other than options, grants in period (in shares) | 0 | ||||||||||
ESPP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Number of shares purchased | 289,000 | ||||||||||
Total amount of shares purchased | $ | $ 120 | ||||||||||
[1] Includes 1,416 and 1,056 awards accounted for as service-based and market-based options, respectively, that are vested, that the Company currently deems probable of vesting, or in the case of market-based options, that the Company is expensing so long as the respective service conditions are met. The market-based options will vest only if the price of the Company's common stock reaches a $ 1 billion market capitalization target for any 20 days during a 30 -day period on or before February 4, 2026. |
Equity Incentive and Other Pl_4
Equity Incentive and Other Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||||||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Mar. 31, 2023 | ||||
2021 Plan | |||||||
Number of Shares | |||||||
Outstanding (in shares) | 101 | 101 | |||||
Forfeited or expired (in shares) | (1) | 0 | |||||
Outstanding (in shares) | 100 | [1] | 101 | 100 | [1] | 101 | |
Vested and exercisable (in shares) | 33 | 33 | |||||
Weighted Average Exercise Price | |||||||
Outstanding (in usd per share) | $ 1.98 | $ 1.98 | |||||
Forfeited or expired (in usd per share) | 1.92 | 1.60 | |||||
Outstanding (in usd per share) | $ 1.98 | [1] | $ 1.98 | 1.98 | [1] | $ 1.98 | |
Vested and exercisable (in usd per share) | $ 1.98 | $ 1.98 | |||||
Aggregate Intrinsic Value | |||||||
Outstanding | $ 0 | [1] | $ 0 | $ 0 | [1] | ||
Vested and exercisable | $ 0 | $ 0 | |||||
Weighted Average Remaining Contractual Term (in years) | |||||||
Outstanding | 9 years 1 month 20 days | [1] | 9 years 7 months 9 days | ||||
Vested and exercisable | 9 years 1 month 20 days | ||||||
2018 Plan | |||||||
Number of Shares | |||||||
Outstanding (in shares) | 2,985 | 3,431 | |||||
Exercised (in shares) | 0 | ||||||
Forfeited or expired (in shares) | (513) | (446) | |||||
Outstanding (in shares) | 2,472 | [1] | 3,431 | 2,472 | [1] | 2,985 | |
Vested and exercisable (in shares) | 1,380 | 1,380 | |||||
Weighted Average Exercise Price | |||||||
Outstanding (in usd per share) | $ 1.63 | $ 1.60 | |||||
Exercised (in usd per share) | 0.40 | ||||||
Forfeited or expired (in usd per share) | 1.27 | 1.40 | |||||
Outstanding (in usd per share) | $ 1.71 | [1] | $ 1.60 | 1.71 | [1] | $ 1.63 | |
Vested and exercisable (in usd per share) | $ 1.34 | $ 1.34 | |||||
Aggregate Intrinsic Value | |||||||
Outstanding | [1] | $ 6 | $ 6 | ||||
Vested and exercisable | $ 6 | $ 6 | |||||
Weighted Average Remaining Contractual Term (in years) | |||||||
Outstanding | [1] | 4 years 10 months 17 days | |||||
Vested and exercisable | 5 years 6 months 29 days | ||||||
[1] Includes 1,416 and 1,056 awards accounted for as service-based and market-based options, respectively, that are vested, that the Company currently deems probable of vesting, or in the case of market-based options, that the Company is expensing so long as the respective service conditions are met. The market-based options will vest only if the price of the Company's common stock reaches a $ 1 billion market capitalization target for any 20 days during a 30 -day period on or before February 4, 2026. |
Equity Incentive and Other Pl_5
Equity Incentive and Other Plans - Restricted Stock Unit (Details) - 2021 Plan - Restricted Stock Units and Performance Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2023 | |
Number of Shares | |||
Beginning balance (in shares) | 1,845 | 2,058 | 2,058 |
Granted (in shares) | 631 | ||
Vested (in shares) | (524) | (359) | |
Forfeited (in shares) | (331) | (485) | |
Ending balance (in shares) | 990 | 1,845 | 990 |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in usd per share) | $ 0.89 | $ 1.30 | $ 1.30 |
Granted (in usd per share) | 0.48 | ||
Vested (in usd per share) | 0.59 | 0.94 | |
Forfeited (in usd per share) | 0.93 | 1 | |
Ending balance (in usd per share) | $ 1.03 | $ 0.89 | $ 1.03 |
Granted, fair value | $ 305 | ||
Vested, fair value | $ 199 | $ 188 |
Equity Incentive and Other Pl_6
Equity Incentive and Other Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 580 | $ 464 | $ 1,238 | $ 2,388 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 60 | 26 | 136 | 60 |
Product development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 97 | 19 | 206 | 37 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 423 | $ 419 | $ 896 | $ 2,291 |
Equity Incentive and Other Pl_7
Equity Incentive and Other Plans - Summary of Defined Contribution Retirement (401k) Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||||
401(k) matching contributions | $ 153 | $ 215 | $ 386 | $ 459 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Aug. 31, 2021 | Jun. 30, 2021 |
2021 Notes | Convertible Senior Notes | |||
Related Party Transaction [Line Items] | |||
Aggregate principal amount | $ 7,500 | $ 23,970 | |
Remaining in Accrued Expenses and Other Current Liabilities | Board Of Directors | |||
Related Party Transaction [Line Items] | |||
Due to related parties | $ 10 | ||
Significant investor | 2021 Notes | Convertible Senior Notes | |||
Related Party Transaction [Line Items] | |||
Aggregate principal amount | $ 1,000 |
Net (Loss) Income Per Share - N
Net (Loss) Income Per Share - Narrative (Details) - shares | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 04, 2022 |
Sponsor, escrow shares | |||
Schedule Of Reverse Recapitalization [Line Items] | |||
Earn-out shares (in shares) | 1,625,000 | 1,625,000 | 1,625,000 |
Net (Loss) Income Per Share - C
Net (Loss) Income Per Share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||
Net (loss) income | $ (1,436) | $ (5,397) | $ 14,759 | $ (19,376) | $ (6,833) | $ (4,617) |
Income impact of convertible promissory notes | 0 | 600 | 0 | 0 | ||
Total undistributed (loss) income | $ (1,436) | $ 15,359 | $ (6,833) | $ (4,617) | ||
Weighted average shares outstanding (in shares) | 39,509 | 37,415 | 39,109 | 35,097 | ||
Dilutive effect of convertible promissory notes | 0 | 2,429 | 0 | 0 | ||
Dilutive effect of stock-based awards | 0 | 2,197 | 0 | 0 | ||
Common stock and common stock equivalents (in shares) | 39,509 | 42,041 | 39,109 | 35,097 | ||
Basic net (loss) income per share | $ (0.04) | $ 0.39 | $ (0.17) | $ (0.13) | ||
Diluted net (loss) income per share | $ (0.04) | $ 0.37 | $ (0.17) | $ (0.13) |
Net (Loss) Income Per Share - A
Net (Loss) Income Per Share - Antidilutive Shares (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 23,810 | 22,429 | 24,321 | 24,858 |
Shares subject to warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 10,451 | 10,451 | 10,451 | 10,451 |
Shares subject to convertible promissory notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 2,480 | 0 | 2,480 | 2,429 |
Shares subject to forward purchase agreements | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 0 | 3,819 | 0 | 3,819 |
Escrow Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 1,625 | 1,625 | 1,625 | 1,625 |
Shares subject to outstanding common stock options, RSUs and PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 3,825 | 1,105 | 4,336 | 1,105 |
Shares subject to stockholder earn-out rights | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive shares | 5,429 | 5,429 | 5,429 | 5,429 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 10,675 | $ 12,050 | $ 21,924 | $ 23,470 |
Gross profit | 9,437 | 10,609 | 19,340 | 20,574 |
Retail | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8,840 | 9,065 | 18,310 | 18,244 |
Gross profit | 7,863 | 8,075 | 16,254 | 16,214 |
Brands | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,835 | 2,985 | 3,614 | 5,226 |
Gross profit | $ 1,574 | $ 2,534 | $ 3,086 | $ 4,360 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Aug. 01, 2022 | Mar. 31, 2022 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Gain (loss) | $ 14 | $ 24,397 | $ 281 | $ 14,000 | |||||
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Derivative liability | Derivative liability | |||||||
Forward share purchase agreements derivative liability | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability | $ 13,824 | ||||||||
Level 3 | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability | $ 157 | 37,085 | $ 157 | 37,085 | $ 171 | $ 438 | $ 61,482 | ||
Gain (loss) | 14 | 24,397 | 281 | 14,000 | |||||
Level 3 | Private warrants derivative liability | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability | 121 | 3,693 | 121 | 3,693 | 130 | 182 | 7,989 | ||
Gain (loss) | 9 | 4,296 | 61 | 223 | |||||
Level 3 | Forward share purchase agreements derivative liability | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability | [1] | 0 | 17,763 | 0 | 17,763 | 0 | 0 | 7,452 | |
Gain (loss) | [1] | 0 | (10,311) | 0 | (3,593) | ||||
Level 3 | Escrow shares derivative liability | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability | 6 | 3,481 | 6 | 3,481 | 7 | 52 | 10,129 | ||
Gain (loss) | 1 | 6,648 | 46 | 3,387 | |||||
Level 3 | Stockholder earn-out rights derivative liability | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Derivative liability | 30 | 12,148 | 30 | 12,148 | $ 34 | $ 204 | $ 35,912 | ||
Gain (loss) | $ 4 | $ 23,764 | $ 174 | $ 13,983 | |||||
[1] The forward share purchase agreements were settled effective August 1, 2022, at which time the fair value was $ 13,824 based on cash settlement. |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation Assumptions (Details) | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) |
Private warrants derivative liability | Exercise price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 11.50 | 11.50 | 11.50 | 11.50 | 11.50 |
Private warrants derivative liability | Stock price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.29 | 0.40 | 0.65 | 4.50 | 8.28 |
Private warrants derivative liability | Volatility | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.999 | 0.888 | 7,500 | 0.516 | 0.367 |
Private warrants derivative liability | Term (in years) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative, term | 3 years 7 months 6 days | 3 years 10 months 2 days | 4 years 1 month 2 days | 4 years 7 months 2 days | 4 years 10 months 6 days |
Private warrants derivative liability | Risk-free rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.045 | 0.037 | 410 | 0.030 | 0.024 |
Private warrants derivative liability | Dividend yield | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0 | 0 | 0 | 0 | 0 |
Forward share purchase agreements derivative liability | Exercise price one | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 10.31 | 10.16 | |||
Forward share purchase agreements derivative liability | Exercise price three | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 10.16 | 10.01 | |||
Forward share purchase agreements derivative liability | Stock price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 4.50 | 8.28 | |||
Forward share purchase agreements derivative liability | Volatility | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.704 | 0.726 | |||
Forward share purchase agreements derivative liability | Term (in years) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative, term | 1 month 2 days | 1 month 2 days | |||
Forward share purchase agreements derivative liability | Risk-free rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.013 | 0.002 | |||
Forward share purchase agreements derivative liability | Dividend yield | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0 | 0 | |||
Escrow shares derivative liability | First stock price trigger | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 13.50 | 13.50 | 13.50 | 13.50 | 13.50 |
Escrow shares derivative liability | Second stock price trigger | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 15.50 | 15.50 | 15.50 | 15.50 | 15.50 |
Escrow shares derivative liability | Stock price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.29 | 0.40 | 0.65 | 4.50 | 8.28 |
Escrow shares derivative liability | Volatility | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.986 | 0.875 | 8,600 | 0.680 | 0.630 |
Escrow shares derivative liability | Term (in years) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative, term | 1 year 7 months 6 days | 1 year 10 months 2 days | 2 years 1 month 2 days | 2 years 7 months 2 days | 2 years 10 months 6 days |
Escrow shares derivative liability | Risk-free rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.051 | 0.041 | 440 | 0.030 | 0.024 |
Escrow shares derivative liability | Dividend yield | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0 | 0 | 0 | 0 | 0 |
Stockholder earn-out rights derivative liability | First stock price trigger | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 13.50 | 13.50 | 13.50 | 13.50 | 13.50 |
Stockholder earn-out rights derivative liability | Second stock price trigger | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 15.50 | 15.50 | 15.50 | 15.50 | 15.50 |
Stockholder earn-out rights derivative liability | First revenue trigger | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 65,000,000 | 65,000,000 | 65,000,000 | 65,000,000 | 65,000,000 |
Stockholder earn-out rights derivative liability | Second revenue trigger | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 101,000,000 | 101,000,000 | 101,000,000 | 101,000,000 | 101,000,000 |
Stockholder earn-out rights derivative liability | Stock price | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.29 | 0.40 | 0.65 | 4.50 | 8.28 |
Stockholder earn-out rights derivative liability | 2022 Revenue assumption | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 44,000,000 | 44,000,000 | 48,000,000 | 49,500,000 | 55,500,000 |
Stockholder earn-out rights derivative liability | Volatility | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.986 | 0.875 | 8,600 | 0.680 | 0.630 |
Stockholder earn-out rights derivative liability | Term (in years) | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative, term | 1 year 7 months 6 days | 1 year 10 months 2 days | 2 years 1 month 2 days | 2 years 7 months 2 days | 2 years 10 months 6 days |
Stockholder earn-out rights derivative liability | Risk-free rate | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0.051 | 0.041 | 440 | 0.030 | 0.024 |
Stockholder earn-out rights derivative liability | Dividend yield | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Derivative liability, measurement input | 0 | 0 | 0 | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) shares in Thousands, $ in Thousands | Jul. 25, 2023 | Jul. 11, 2023 |
Forward Share Purchase Agreements [Member] | ||
Subsequent Event [Line Items] | ||
Restricted cash | $ 360 | |
Restricted stock units | ||
Subsequent Event [Line Items] | ||
Number of shares awarded | 2,512 | |
Restricted stock units | Non-employee Board members | ||
Subsequent Event [Line Items] | ||
Number of shares awarded | 655 | |
Vesting date | Aug. 20, 2023 | |
Restricted stock units | Employee | ||
Subsequent Event [Line Items] | ||
Vesting Period | 2 years | |
Performance-based units | ||
Subsequent Event [Line Items] | ||
Number of shares awarded | 473 |