Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Registrant Name | Dave Inc./DE | |
Entity Central Index Key | 0001841408 | |
Entity Tax Identification Number | 86-1481509 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-40161 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 1265 South Cochran Ave | |
Entity Address, City or Town | Los Angeles | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90019 | |
City Area Code | 844 | |
Local Phone Number | 857-3283 | |
Document Transition Report | false | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Warrant [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $368 per share | |
Trading Symbol | DAVEW | |
Security Exchange Name | NASDAQ | |
Class A common stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 | |
Trading Symbol | DAVE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 10,402,531 | |
Class V common stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,514,082 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 51,754 | $ 22,889 |
Marketable securities | 34,423 | 285 |
Member advances, net of allowance for credit losses | 80,161 | 104,183 |
Short-term investments | 108,831 | 168,789 |
Prepaid income taxes | 824 | 831 |
Prepaid expenses and other current assets | 15,653 | 11,591 |
Total current assets | 291,646 | 308,568 |
Property and equipment, net | 1,249 | 1,026 |
Lease right-of-use assets (related-party of $672 and $735 as of March 31, 2023 and December 31, 2022, respectively) | 672 | 735 |
Intangible assets, net | 11,029 | 10,163 |
Debt facility commitment fee, long-term | 59 | 75 |
Restricted cash | 788 | 788 |
Other non-current assets | 0 | 137 |
Total assets | 305,443 | 321,492 |
Current liabilities: | ||
Accounts payable | 4,558 | 11,418 |
Accrued expenses | 13,612 | 10,965 |
Lease liabilities, short-term (related-party of $265 and $273 as of March 31, 2023 and December 31, 2022, respectively) | 265 | 273 |
Legal settlement accrual | 3,701 | 9,450 |
Other current liabilities | 4,182 | 4,311 |
Total current liabilities | 26,318 | 36,417 |
Lease liabilities, long-term (related-party of $489 and $550 as of March 31, 2023 and December 31, 2022, respectively) | 489 | 550 |
Debt facility, long-term | 75,000 | 75,000 |
Convertible debt, long-term | 103,087 | 102,325 |
Warrant and earnout liabilities | 344 | 516 |
Other non-current liabilities | 125 | 124 |
Total liabilities | 205,363 | 214,932 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, par value per share $0.0001, 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 0 | 0 |
Additional paid-in capital | 276,799 | 270,037 |
Accumulated other comprehensive loss | (892) | (1,675) |
Accumulated deficit | (175,828) | (161,803) |
Total stockholders' equity | 100,080 | 106,560 |
Total liabilities, and stockholders' equity | 305,443 | 321,492 |
Dave OD Funding I, LLC | ||
Current assets: | ||
Cash and cash equivalents | 33,919 | 12,030 |
Member advances, net of allowance for credit losses | 55,627 | 71,545 |
Debt facility commitment fee, current | 64 | 62 |
Debt facility commitment fee, long-term | 44 | 75 |
Total assets | 89,654 | 83,712 |
Current liabilities: | ||
Accounts payable | 2,121 | 531 |
Debt facility, long-term | 75,000 | 75,000 |
Total liabilities | 77,121 | 75,531 |
Class A common stock [Member] | ||
Stockholders' equity: | ||
Common stock | 1 | 1 |
Class V common stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Preferred Stock, Par Value | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Member advances, Allowance for credit losses | $ 17,365 | $ 24,501 |
Related party lease right of use assets | 672 | 735 |
Related Party Short term lease liabilities | 265 | 273 |
Related Party long term lease liabilities | $ 489 | $ 550 |
Class A common stock [Member] | ||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 10,402,531 | 10,334,220 |
Common Stock, Shares, Outstanding | 10,352,968 | 10,284,657 |
Common Class V [Member] | ||
Common Stock, Par Value | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 1,514,082 | 1,514,082 |
Common Stock, Shares, Outstanding | 1,514,082 | 1,514,082 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating revenues: | ||
Revenues | $ 58,928 | $ 42,551 |
Operating expenses: | ||
Provision for credit losses | 11,953 | 13,785 |
Processing and servicing costs | 7,118 | 6,543 |
Advertising and marketing | 9,471 | 12,204 |
Compensation and benefits | 24,367 | 17,894 |
Other operating expenses | 18,501 | 14,798 |
Total operating expenses | 71,410 | 65,224 |
Other (income) expenses: | ||
Interest income | (1,192) | (13) |
Interest expense | 2,898 | 1,555 |
Other strategic financing and transactional expenses | 0 | 961 |
Changes in fair value of earnout liabilities | (25) | (2,040) |
Changes in fair value of derivative asset on loans to stockholders | 0 | 5,572 |
Changes in fair value of public and private warrant liabilities | (146) | 4,065 |
Total other expense, net | 1,535 | 10,100 |
Net loss before provision for income taxes | (14,017) | (32,773) |
Provision for income taxes | 8 | 22 |
Net loss | $ (14,025) | $ (32,795) |
Net loss per share: | ||
Basic | $ (1.19) | $ (2.91) |
Diluted | $ (1.19) | $ (2.91) |
Weighted-average shares used to compute net loss per share | ||
Basic | 11,815,448 | 11,259,025 |
Diluted | 11,815,448 | 11,259,025 |
Service based revenue, net [Member] | ||
Operating revenues: | ||
Revenues | $ 52,576 | $ 39,268 |
Transaction based revenue, net [Member] | ||
Operating revenues: | ||
Revenues | $ 6,352 | $ 3,283 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net loss | $ (14,025) | $ (32,795) |
Unrealized gain on available-for-sale securities | 783 | |
Comprehensive loss | $ (13,242) | $ (32,795) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock [Member] Common stock Class A [Member] | Common stock [Member] Common stock Class V [Member] | Additional paid-in capital [Member] | Loans to stockholders [Member] | Treasury stock [Member] | Accumulated other comprehensive loss | Accumulated Deficit [Member] |
Beginning balance at Dec. 31, 2021 | $ 38,737 | $ 1 | $ 86,830 | $ (15,192) | $ (5) | $ (32,897) | ||
Beginning balance, Shares at Dec. 31, 2021 | 9,283,010 | 1,514,082 | ||||||
Issuance of Class A common stock in connection with stock plans (Value) | 1,558 | 1,558 | ||||||
Issuance of Class A common stock in connection with stock plans (Shares) | 104,271 | |||||||
Issuance of Class A common stock pursuant to the PIPE financing | 210,000 | 210,000 | ||||||
Issuance of Class A common stock pursuant to the PIPE financing (Shares) | 656,247 | |||||||
Issuance of Class A common stock pursuant to the Merger Agreement (Shares) | 211,415 | |||||||
Issuance of Class A common stock pursuant to the Merger Agreement (Value) | (26,702) | (26,702) | ||||||
Exercise of Series B-1 preferred stock warrants, net of settlement (Value) | 3,365 | 3,365 | ||||||
Exercise of Series B-1 preferred stock warrants, net of settlement (Shares) | 14,087 | |||||||
Conversion of 2019 convertible notes and accrued interest to Class A common stock (Value) | 720 | 720 | ||||||
Conversion of 2019 convertible notes and accrued interest to Class A common stock (Shares) | 7,040 | |||||||
Repurchase of Class A common stock, (Value) | (1,583) | (1,588) | $ 5 | |||||
Repurchase of Class A common stock (Shares) | (6,203) | |||||||
Exercise of warrant for Class A common stock (Shares) | 3 | |||||||
Stockholder loans interest | (12) | (12) | ||||||
Exercise of derivative asset and paydown of stockholder loans (Value) | (29,681) | (44,885) | $ 15,204 | |||||
Exercise of derivative asset and paydown of stockholder loans (Shares) | (187,945) | |||||||
Stock-based compensation | 3,190 | 3,190 | ||||||
Net loss | (32,795) | (32,795) | ||||||
Ending balance at Mar. 31, 2022 | 166,797 | $ 1 | 232,488 | (65,692) | ||||
Ending balance, Shares at Mar. 31, 2022 | 10,081,925 | 1,514,082 | ||||||
Beginning balance at Dec. 31, 2022 | 106,560 | $ 1 | 270,037 | $ (1,675) | (161,803) | |||
Beginning balance, Shares at Dec. 31, 2022 | 10,284,657 | 1,514,082 | ||||||
Issuance of Class A common stock in connection with stock plans (Value) | 1 | 1 | ||||||
Issuance of Class A common stock in connection with stock plans (Shares) | 68,311 | |||||||
Payment for fractional shares after reverse stock split | (13) | (13) | ||||||
Stock-based compensation | 6,774 | 6,774 | ||||||
Unrealized gain on available-for-sale securities | 783 | 783 | ||||||
Net loss | (14,025) | (14,025) | ||||||
Ending balance at Mar. 31, 2023 | $ 100,080 | $ 1 | $ 276,799 | $ (892) | $ (175,828) | |||
Ending balance, Shares at Mar. 31, 2023 | 10,352,968 | 1,514,082 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating activities | ||
Net loss | $ (14,025) | $ (32,795) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,200 | 1,158 |
Provision for credit losses | 11,953 | 13,785 |
Changes in fair value of derivative asset on loans to stockholders | 0 | 5,572 |
Changes in fair value of earnout liabilities | (25) | (2,040) |
Changes in fair value of warrant liabilities | (146) | 4,065 |
Stock-based compensation | 6,774 | 3,190 |
Non-cash interest | 759 | (63) |
Non-cash lease expense | (6) | (23) |
Changes in fair value of marketable securities and short-term investments | 440 | 76 |
Changes in operating assets and liabilities: | ||
Member advances, service based revenue | 216 | (1,618) |
Prepaid income taxes | 7 | 22 |
Prepaid expenses and other current assets | (4,061) | (4,847) |
Accounts payable | (6,891) | 2,489 |
Accrued expenses | 2,617 | (1,039) |
Legal settlement accrual | (5,749) | 0 |
Other current liabilities | (129) | (125) |
Other non-current liabilities | 0 | (321) |
Other non-current assets | 137 | 2 |
Net cash used in operating activities | (6,929) | (12,512) |
Investing activities | ||
Payments for internally developed software costs | (1,946) | (2,258) |
Purchase of property and equipment | (264) | (228) |
Net disbursements and collections of Member advances | 11,853 | (24,967) |
Purchase of short-term investments | (5,082) | 0 |
Sale and maturity of short-term investments | 65,390 | 0 |
Purchase of marketable securities | (34,145) | (302,115) |
Sale of marketable securities | 0 | 32,000 |
Net cash provided by (used in) investing activities | 35,806 | (297,568) |
Financing activities | ||
Proceeds from PIPE offering | 0 | 195,000 |
Proceeds from escrow account | 0 | 29,688 |
Payment of issuance costs | 0 | (22,944) |
Payment for fractional shares on reverse stock split | (13) | 0 |
Proceeds from issuance of common stock for stock option exercises | 1 | 1,563 |
Repurchase of common stock | 0 | (1,583) |
Proceeds from borrowings on convertible debt | 0 | 100,000 |
Net cash (used in) provided by financing activities | (12) | 301,724 |
Net increase (decrease) in cash and cash equivalents and restricted cash | 28,865 | (8,356) |
Cash and cash equivalents and restricted cash, beginning of the period | 23,677 | 32,372 |
Cash and cash equivalents and restricted cash, end of the period | 52,542 | 24,016 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment purchases in accounts payable and accrued liabilities | 61 | 0 |
Conversion of convertible preferred stock to Class A common stock in connection with the reverse recapitalization | 0 | 72,173 |
Recapitalization transaction costs liability incurred | 0 | 7,500 |
Conversion of convertible notes and accrued interest to Class A common stock in connection with the reverse recapitalization | 0 | 720 |
Conversion of B-1 warrants to Class A common stock in connection with the reverse recapitalization | 0 | 3,365 |
Discharge of PIPE promissory note in connection with the reverse recapitalization | 0 | 15,000 |
Supplemental disclosure of cash (received) paid for: | ||
Income taxes | 0 | (2) |
Interest | 2,121 | 1,392 |
The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheet with the same as shown in the condensed consolidated statement of cash flows | ||
Cash and cash equivalents | 51,754 | 23,569 |
Restricted cash | 788 | 447 |
Total cash, cash equivalents, and restricted cash, end of the period | $ 52,542 | $ 24,016 |
Organization and Nature of Busi
Organization and Nature of Business | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Note 1 Organization and Nature o f Business Overview: Dave Inc. (“Dave” or the “Company”), a Delaware corporation, with headquarters located in Los Angeles, California, is a financial services company. Dave was originally incorporated in the State of Delaware on January 14, 2021 as a special purpose acquisition company under the name VPC Impact Acquisition Holdings III, Inc. (“VPCC”) and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. On January 5, 2022, we consummated the transactions contemplated by that certain Agreement and Plan of Merger, dated as of June 7, 2021 among VPCC, Dave Inc., a Delaware corporation (“Legacy Dave”), and other entities (the “Business Combination”). In connection with the closing of the Business Combination, we changed our name from “VPC Impact Acquisition Holdings III, Inc.” to “Dave Inc.” Dave offers a suite of innovative financial products aimed at helping Members improve their financial health. To help Members avoid punitive overdraft fees and access short-term liquidity, Dave offers cash advances through its flagship 0% interest ExtraCash product. Through Dave Banking, the Company provides a digital checking account experience with valuable tools for building long-term financial health. Dave also helps Members generate extra income for spending or emergencies through Dave’s Side Hustle product and Surveys, where Dave presents Members with supplemental work and income opportunities. ExtraCash: Many Americans are often unable to maintain a positive balance between paychecks, driving a reliance on overdraft, payday loans, auto title loans and other forms of expensive credit to put food on the table, gas in their car or pay for unexpected emergencies. For example, traditional banks charge up to $ 34 for access to as little as $ 5 of overdraft, and many others in the financial services sector do not allow for overdraft at all. Dave invented a short-term liquidity alternative called ExtraCash, which allows Members to advance funds to their account and avoid a fee altogether. Members may receive an advance of up to $ 500 and may only have one advance outstanding at any given time. Dave Banking: Dave offers a full-service digital checking account through its partnership with Evolve Bank and Trust (“Evolve”). The Dave Spending Account does not have overdraft or minimum balance fees. Budget: Dave’s automated financial management tool leverages historical bank account data to help Members understand both recurring and commonly occurring charges. Budget notifies Members when there is a chance of an overdraft and allows Members to qualify for Dave’s ExtraCash product for up to $ 500 of additional liquidity. Dave charges a $ 1 monthly subscription for access to the Budget product. Side Hustle: Dave seeks to help Members improve their financial health by presenting new job opportunities to them. Through Dave’s partnership with leading employers, Members can quickly submit applications to improve their income with flexible employment. Surveys: Dave’s Surveys product allows for additional income earning opportunities, allowing Members to take paid surveys anytime within the Dave mobile application. This functionality drives engagement within the Dave ecosystem and deepens the Company’s relationship to its Members’ financial wellbeing. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Significant Accounting Policies | Note 2 Significant Accounting Policies Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). On January 4, 2023, the Board approved an amendment to the Company’s certificate of incorporation to complete a 1-for-32 reverse stock split effective January 5, 2023 . At a special meeting held on December 16, 2022, stockholders approved the reverse stock split. The primary goal of the reverse stock split was to bring the Company’s stock price above the share bid price requirement for continued listing on Nasdaq. The effects of the reverse stock split have been reflected in the condensed consolidated financial statements and the footnotes. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and a variable interest entity (“VIE”). All intercompany transactions and balances have been eliminated upon consolidation. In accordance with the provisions of Accounting Standards Codification (“ASC”) 810, Consolidation, the Company consolidates any VIE of which the Company is the primary beneficiary. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company does not consolidate a VIE in which it has a majority ownership interest when it is not considered the primary beneficiary. The Company evaluates its relationships with its VIEs on an ongoing basis to ensure that the Company continues to be the primary beneficiary. The Company is considered the primary beneficiary of Dave OD Funding I, LLC (“Dave OD”), as it has the power over the activities that most significantly impact the economic performance of Dave OD and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant, in accordance with accounting guidance. As a result, the Company consolidated Dave OD and all intercompany accounts have been eliminated. The carrying value of Dave OD’s assets and liabilities, after elimination of any intercompany transactions and balances are shown in the condensed consolidated balance sheets. The assets of Dave OD are restricted and its creditors have full recourse against the Company for its liabilities. Use of Estimates The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported revenues and expenses incurred during the reporting periods. The Company’s estimates are based on its historical experience and on various other factors that the Company believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company’s critical accounting estimates and assumptions are evaluated on an ongoing basis including those related to the: (i) Fair value of warrant liabilities; (ii) Fair value of earnout liabilities; (iii) Allowance for credit losses; and (iv) Income taxes. Actual results may differ from these estimates under different assumptions or conditions. Revenue Recognition Below is detail of operating revenues (in thousands): For the Three Months Ended March 31, 2023 2022 Service based revenue, net Processing fees, net $ 33,002 $ 21,051 Tips 13,760 13,948 Subscriptions 5,619 4,153 Other 195 116 Transaction based revenue, net 6,352 3,283 Total $ 58,928 $ 42,551 Service Based Revenue, Net Service based revenue, net primarily consists of optional tips, optional processing fees, and subscriptions charged to Members, net of processor costs associated with advance disbursements. Member advances are treated as financial receivables under ASC 310 Receivables (“ASC 310”) and processing fees, net and tips are also accounted for in accordance with ASC 310. Processing Fees, Net: Processing fees apply when a Member requests an expedited cash advance. At the Member’s election, the Company expedites the funding of advance funds within eight hours, as opposed to the customary three business days, of the advance approval. Processing fees are nonrefundable loan origination fees and are recognized as revenues over the average expected contractual term of its advances. Costs incurred by the Company to fund cash advances are treated as direct loan origination costs. These direct loan origination costs are netted against advance-related income over the average expected contractual term of its advances. Direct origination costs recognized as a reduction of advance-related income during the three months ended March 31, 2023 and 2022, we re $ 1.3 mi llion and $ 0.9 million, respectively. Tips: The Company encourages, but does not contractually require its Members who receive a cash advance to leave a discretionary tip. The Company treats tips as an adjustment of yield to the advances and are recognized over the average expected contractual term of its advances. Subscriptions: The Company accounts for subscriptions in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company must identify the contract with a Member, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the Company satisfies the performance obligations. For revenue sources that are within the scope of Topic 606, the Company fully satisfies its performance obligations and recognizes revenue in the period it is earned as services are rendered. Transaction prices are typically fixed, charged on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying ASC 606 that significantly affects the determination of the amount and timing of revenue from contracts with the Company’s Members. Sources of revenue from contracts with Members that are in the scope of ASC 606 include subscription fees, lead generation fees and reward program fees. Subscription fees of $ 1 are received on a monthly basis from Members who subscribe to the Company’s application. The Company continually fulfills its obligation to each Member over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably as the Member receives and consumes the benefits of the platform throughout the contract period. Price concessions granted to Members who have insufficient funds when subscription fees are due are forms of variable consideration under the Company’s contracts with Members. For price concessions, the Company has elected, as an accounting policy, to account for price concessions for the month at the end of the reporting month based on the actual amount of concessions granted as the impact is considered insignificant. Other service based revenue consists of lead generation fees from the Company’s Side Hustle advertising partners. Transaction Based Revenue, Net: Transaction based revenue, net primarily consists of interchange and ATM revenues from the Company’s Checking Product, net of certain interchange and ATM-related fees, fees earned from withdrawal-related transactions, volume support from a certain co-branded agreement, and deposit referrals and are recognized at the point in time the transactions occur, as the performance obligations are satisfied and the variable consideration is not constrained. The Company earns interchange fees from Members spend on Dave-branded debit cards, which are reduced by interchange-related costs payable to fulfillment partners. Interchange revenue is remitted by merchants and represents a percentage of the underlying transaction valu e processed through a payment network. ATM fees earned from the Member’s usage of out-of-network ATMs are reduced by related ATM transaction costs during the three months ended March 31, 2023 and 2022, were $ 0.3 and $ 0.1 million, respectively. Processing and Servicing Costs Processor costs consist of amounts paid to third party processors for the recovery of advances, tips, processing fees, and subscriptions. These expenses also include fees paid for services to connect Member’s bank accounts to the Company’s application. Except for processing and service fees associated with advance disbursements, which are recorded net against revenue, all other processing and service fees are expensed as incurred. Cash and Cash Equivalents The Company classifies all highly liquid instruments with an original maturity of three months or less as cash equivalents. Restricted Cash Restricted cash primarily represents cash held at financial institutions that is pledged as collateral for specific accounts that may become overdrawn. Marketable Securities Marketable securities consist of a money market mutual fund. The fair value of marketable securities is determined by quoted prices in active markets and changes in fair value are recorded in other (income) expense in the condensed consolidated statements of operations. Short-Term Investments Short-term investments consist of corporate bonds and notes, asset backed securities, and government securities and are classified as “available-for-sale”, as the sale of such securities may be required prior to maturity to implement the Company’s strategies. The fair value of short-term investments is determined by quoted prices in active markets with unrealized gains and losses (other than credit related impairment) reported as a separate component of other comprehensive income. For securities with unrealized losses, any credit related portion of the loss is recognized in earnings. If it is more likely than not that the Company will be unable or does not intend to hold the security to recovery of the non-credit related unrealized loss, the loss is recognized in earnings. Realized gains and losses are determined using the specific identification method and recognized in the condensed consolidated statements of comprehensive income. Any related amounts recorded in accumulated other comprehensive income are reclassified to earnings (on a pretax basis). Member Advances Member advances include ExtraCash advances, fees, and tips, net of certain direct origination costs and allowance for expected credit losses. Management’s intent is to hold advances until the earlier of repayment or payoff date. Members’ cash advances are treated as financial receivables under ASC 310. Advances to Members are not interest-bearing. The Company recognizes these advances at the advanced amount and does not use discounting techniques to determine present value of advances due to their short-term nature. The Company does not provide modifications to advances and does not charge late fees. Allowance for Credit Losses Member advances from contracts with Members as of the balance sheet dates are recorded at their original advance amounts, inclusive of outstanding processing fees and tips, and reduced by an allowance for expected credit losses. The Company pools its Member advances, all of which are short-term (average term of approximately 11 days) in nature and arise from contracts with Members, based on shared risk characteristics to assess their risk of loss, even when that risk is remote. The Company uses an aging method and historical loss rates as a basis for estimating the percentage of current and delinquent Member advances balances that will result in credit losses to derive the allowance for credit losses. The Company considers whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions warrant an adjustment to its historical loss experience. In assessing such adjustments, the Company primarily evaluates current economic conditions, expectations of near-term economic trends and changes in customer payment terms, collection trends and cash collections subsequent to the balance sheet date. For the measurement dates presented herein, given its methods of collecting funds, and that the Company has not observed meaningful changes in its customers’ payment behavior, it determined that its historical loss rates remained most indicative of its lifetime expected losses. The Company immediately recognizes an allowance for expected credit losses upon the origination of the advance. Adjustments to the allowance each period for changes in the estimate of lifetime expected credit losses are recognized in operating expenses—provision for credit losses in the condensed consolidated statements of operations. When the Company determines that a Member advance is not collectible, the uncollectible amount is written-off as a reduction to both the allowance and the gross asset balance. Subsequent recoveries are recorded when received and are recorded as a recovery of the allowance for expected credit losses. Any change in the assumptions used in analyzing a specific Member advance may result in an additional allowance for expected credit losses being recognized in the period in which the change occurs. Internally Developed Software Internally developed software is capitalized when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and other compensation costs for employees incurred for time spent on upgrades and enhancements to add functionality to the software and fees paid to third-party consultants who are directly involved in development efforts. These capitalized costs are included on the condensed consolidated balance sheets as intangible assets, net. Other costs are expensed as incurred and included within other operating expenses in the condensed consolidated statements of operations. Capitalized costs for the three months ended March 31, 2023 and 2022, were $ 1.9 million and $ 2.3 million, respectively. Amortization of internally developed software commences when the software is ready for its intended use (i.e., after all substantial testing is complete). Internally developed software is amortized over its estimated useful life of 3 years. The Company’s accounting policy is to perform annual reviews of capitalized internally developed software projects to determine whether any impairment indicators are present as of December 31, or whenever a change in circumstances suggests an impairment indicator is present. If any impairment indicators are present, the Company will perform a recoverability test by comparing the sum of the estimated undiscounted cash flows attributed to the asset group to their carrying value. If the undiscounted cash flows expected to result from the remaining use of the asset (i.e., cash flows when testing recoverability) are less than the asset group’s carrying value, the Company will determine the fair value of the asset group and recognize an impairment loss as the amount by which the carrying value of the asset group exceeds its fair value. If based on the results of the recoverability test, no impairment is indicated as the remaining undiscounted cash flows exceed the carrying value of the software asset group, the carrying value of the asset group as of the assessment date is deemed fully recoverable. In addition, the Company evaluates the remaining useful life of an intangible asset that is being amortized each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying value of the intangible asset shall be amortized prospectively over that revised remaining useful life. Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Property and equipment are recorded at cost and depreciated over the estimated useful lives ranging from 3 to 7 years using the straight-line method. Maintenance and repair costs are charged to operations as incurred and included within other operating expenses in the condensed consolidated statements of operations. Impairment of Long-Lived Assets The Company assesses the impairment of long-lived assets, primarily property and equipment and amortizable intangible assets, whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. If the sum of the expected undiscounted future cash flows from an asset is less than the carrying amount of the asset, the Company estimates the fair value of the assets. The Company measures the loss as the amount by which the carrying amount exceeds its fair value calculated using the present value of estimated net future cash flows. Fair Value of Financial Instruments ASC 820, Fair Value Measurement (“ASC 820”), provides a single definition of fair value and a common framework for measuring fair value as well as disclosure requirements for fair value measurements used in the condensed consolidated financial statements. Under ASC 820, fair value is determined based upon the exit price that would be received by a company to sell an asset or paid by a company to transfer a liability in an orderly transaction between market participants, exclusive of any transaction costs. Fair value measurements are determined by either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. Absent a principal market to measure fair value, the Company uses the most advantageous market, which is the market from which the Company would receive the highest selling price for the asset or pay the lowest price to settle the liability, after considering transaction costs. However, when using the most advantageous market, transaction costs are only considered to determine which market is the most advantageous and these costs are then excluded when applying a fair value measurement. ASC 820 creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below, with Level 1 having the highest priority and Level 3 having the lowest. Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Concentration of Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash and cash equivalents, restricted cash, Member cash advances, and short-term investments. The Company’s cash and cash equivalents and restricted cash in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limits were $ 51.0 million at March 31, 2023 and at $ 20.7 million at December 31, 2022, respectively. The Company’s payment processors also collect cash on the Company’s behalf and will hold these cash balances temporarily until they are settled the next business day. Also, the Company does not believe its marketable securities are exposed to any significant credit risk due to the quality and nature of the securities in which the money is held. No Member individually exceeded 10% or more of the Company’s Member cash advances balances as of March 31, 2023 and December 31, 2022. Leases ASC 842, Leases (“ASC 842”) requires lessees to recognize most leases on the condensed consolidated balance sheet with a corresponding right-of-use asset. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. Leases are classified as financing or operating which will drive the expense recognition pattern. Lease payments on short-term leases are recognized as expense on a straight-line basis over the lease term. At the time of a lease abandonment, the operating lease right-of-use asset is derecognized, while the corresponding lease liability is evaluated by the Company based any remaining contractual obligations as of the lease abandonment date. The Company leases office space under two separate leases, both of which are considered operating leases. Options to extend or terminate a lease are considered as part of calculating the lease term to the extent that the option is reasonably certain of exercise. The leases do not include the options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Covenants imposed by the leases include letters of credit required to be obtained by the lessee. The incremental borrowing rate (“IBR”) represents the rate of interest the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. When determinable, the Company uses the rate implicit in the lease to determine the present value of lease payments. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. Stock-Based Compensation Stock Option Awards: ASC 718, Compensation-Stock Compensation (“ASC 718”), requires the estimate of the fair value of all stock-based payments to employees, including grants of stock options, to be recognized in the statement of operations over the requisite service period. Under ASC 718, employee option grants are generally valued at the grant date and those valuations do not change once they have been established. The fair value of each option award is estimated on the grant date using the Black-Scholes Option Pricing Model. As allowed by ASC 718, the Company’s estimate of expected volatility is based on its peer company average volatilities, including industry, stage of life cycle, size, and financial leverage. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant valuation. The Company recognizes forfeitures as they occur. Restricted Stock Unit Awards: Restricted stock units (“RSUs”) are valued on the grant date. The fair value of the RSUs that vest based solely on a service condition is equal to the estimated fair value of the Company’s Common Stock on the grant date. This compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For RSUs that contain both a market condition and a service condition, market volatility and other factors are taken into consideration in determining the grant date fair value and the related compensation expense is recognized on a straight-line basis over the requisite service period of each separately vesting tranche, regardless of whether the market condition is satisfied, provided that the requisite service has been provided. These costs are a component of stock-based compensation expense, presented within compensation and benefits in the condensed consolidated statements of operations. The Company recognizes forfeitures as they occur. Restricted Stock Awards: Restricted stock awards (“RSAs”) are valued on the grant date. The fair value of the RSAs is equal to the estimated fair value of the Company’s Common Stock on the grant date. This compensation cost is recognized over the requisite service period as a component of stock-based compensation expense, presented within compensation and benefits in the condensed consolidated statements of operations. The Company recognizes forfeitures as they occur. RSAs Issued to Non-Employees: The Company issues shares of restricted stock to consultants for various advisory and consulting-related services. The Company recognized this expense, measured as the estimated value of the shares issued, as a component of stock-based compensation expense, presented within compensation and benefits in the condensed consolidated statements of operations. Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the three months ended March 31, 2023 and 2022, were $ 9.5 million and $ 12.2 million, respectively, and are presented within advertising and marketing within the condensed consolidated statements of operations. Income Taxes The Company follows ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the condensed consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more-likely-than-not that the asset will not be realized. The effective tax rate used for interim periods is the estimated annual effective tax rate, based on the current estimate of full year results, except that those taxes related to specific discrete events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained in a court of last resort, based on the technical merits. If more-likely-than-not, the amount recognized is the largest amount of tax benefit that is greater than 50 % likely of being realized on examination, including compromise settlements. For tax positions not meeting the more-likely-than-not threshold, no tax benefit is recorded. The Company has estimated $ 1.0 million and $ 0.9 million of uncertain tax positions as of March 31, 2023 and December 31, 2022, respectively, related to state income taxes. and federal and state research tax credits. The Company’s policy is to recognize interest expense and penalties accrued on any unrecognized tax benefits as a component of income tax expense within the statement of operations. The Company recognized $ 0.002 million and $ 0.001 million of interest expense and penalties as a component of income tax expense during the three months ended March 31, 2023 and 2022, respectively . Segment Information The Company determines its operating segments based on how its chief operating decision makers manage operations, make operating decisions, and evaluate operating performance. The Company has determined that the Chief Operating Decision Maker (“CODM”) is a joint role shared by the Chief Executive Officer and Chief Financial Officer. Based upon the way the CODM reviews financial information and makes operating decisions and considering that the CODM reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance, the service-based and transaction-based operations constitute a single operating segment and one reportable segment. Net Loss Per Share Attributable to Stockholders The Company has two classes of participating securities (Class A Common Stock and Class V Common Stock) issued and outstanding as of March 31, 2023. Basic net loss attributable to holders of Common Stock per share is calculated by dividing net loss attributable to holders of Common Stock by the weighted-average number of shares outstanding, excluding shares issued in relation to unvested restricted stock awards and vested early exercise options funded by non-recourse notes (refer to Note 16, Related-Party Transactions for further details on the Company’s Loans to Stockholders). Diluted net loss per share attributable to holders of common stock adjusts the basic net loss per share attributable to stockholders and the weighted- average number of shares outstanding for the potentially dilutive impact of stock options, warrants, and restricted stock using the treasury stock method and convertible preferred stock using the as-if-converted method. The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to holders of common stock (in thousands, except share data): For the Three Months ended March 31, 2023 March 31,2022 Numerator Net loss $ ( 14,025 ) $ ( 32,795 ) Less: noncumulative dividend to convertible preferred stockholders - - Less: undistributed earnings to participating securities - - Net loss attributed to common stockholders—basic ( 14,025 ) ( 32,795 ) Add: undistributed earnings reallocated to common stockholders - - Net loss attributed to common stockholders—diluted $ ( 14,025 ) $ ( 32,795 ) Denominator Weighted-average shares of common stock—basic 11,815,448 11,259,025 Dilutive effect of convertible preferred stock - - Dilutive effect of equity incentive awards - - Weighted-average shares of common stock—diluted 11,815,448 11,259,025 Net loss per share Basic $ ( 1.19 ) $ ( 2.91 ) Diluted $ ( 1.19 ) $ ( 2.91 ) The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: For the Three Months ended March 31, 2023 March 31,2022 Stock options, RSU awards, and PSU awards 2,552,474 904,220 Convertible debt 312,500 312,500 Total 2,864,974 1,216,720 Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. Recently Adopted Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) . ASU 2016-13 introduced a new credit loss methodology, the Current Expected Credit Losses (“CECL”) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit lo |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Note 3 Marketable Securities Below is a detail of marketable securities (in thousands): March 31, 2023 December 31, 2022 Marketable securities $ 34,423 $ 285 Total $ 34,423 $ 285 At March 31, 2023 and December 31, 2022, the Company’s marketable securities consisted of investments in a publicly traded money market mutual fund with a ticket symbol SSPXX. The underlying money market instruments were primarily comprised of certificates of deposit and financial company asset backed commercial paper. At March 31, 2023 the investment portfolio had a weighted-average maturity of 45 days. At December 31, 2022 the investment portfolio had a weighted-average maturity of 48 days. The gain recognized in connection with the investment in marketable securities for the three months ended March 31, 2023 and 2022, was $ 0.1 million and $ 0.07 million, respectively and recorded as a component of interest income in the condensed consolidated statements of operations. |
Short-term investments
Short-term investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term investments | Note 4 Short-Term Investments Below is a summary of short-term investments, which are measured at fair value as of March 31, 2023 (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 97,887 $ - $ ( 952 ) $ 96,935 Asset-backed securities 8,885 20 - 8,905 Government securities 2,951 40 - 2,991 Total $ 109,723 $ 60 $ ( 952 ) $ 108,831 At March 31, 2023 and December 31, 2022, the Company’s short-term investments consisted of investments in corporate bonds and notes, asset backed securities, and government securities with va rying maturity dates between 2023 through 2027. |
Member Cash Advances, Net
Member Cash Advances, Net | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Member Cash Advances, Net | Note 5 Member Cash Advances, Net Below is a detail of Member cash advances, net as of March 31, 2023 (in thousands): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 69,224 $ ( 1,912 ) $ 67,312 11-30 10,497 ( 2,583 ) 7,914 31-60 6,535 ( 3,995 ) 2,540 61-90 5,603 ( 4,211 ) 1,392 91-120 5,667 ( 4,664 ) 1,003 Total $ 97,526 $ ( 17,365 ) $ 80,161 Below is a detail of Member cash advances, net as of December 31, 2022 (in thousands): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 91,121 $ ( 2,224 ) $ 88,897 11-30 10,683 ( 2,582 ) 8,101 31-60 9,022 ( 5,529 ) 3,493 61-90 8,865 ( 6,702 ) 2,163 91-120 8,993 ( 7,464 ) 1,529 Total $ 128,684 $ ( 24,501 ) $ 104,183 Member advances, net, represent outstanding advances, tips, and processing fees, net of direct origination costs, less an allowance for credit losses. The roll-forward of the allowance for credit losses is as follows (in thousands): Opening allowance balance at January 1, 2023 $ 24,501 Plus: provision for credit losses 11,953 Less: amounts written-off ( 19,089 ) Ending allowance balance at March 31, 2023 $ 17,365 Opening allowance balance at January 1, 2022 $ 11,995 Plus: provision for credit losses 13,785 Less: amounts written-off ( 9,440 ) Ending allowance balance at March 31, 2022 $ 16,340 |
Intangible Assets, Net
Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Note 6 Intangible Assets, Net The Company’s intangible assets, net consisted of the following (in thousands): March 31, 2023 December 31, 2022 Weighted Average Useful Lives Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Internally developed software 3.0 Years $ 23,640 $ ( 12,683 ) $ 10,957 $ 21,694 $ ( 11,605 ) $ 10,089 Domain name 15.0 Years 121 ( 49 ) 72 121 ( 47 ) 74 Intangible assets, net $ 23,761 $ ( 12,732 ) $ 11,029 $ 21,815 $ ( 11,652 ) $ 10,163 The future estimated amortization expenses as of March 31, 2023, were as follows (in thousands): 2023 (remaining) $ 2,646 2024 4,314 2025 2,456 2026 1,571 2027 8 Thereafter 34 Total future amortization $ 11,029 Amortization expense for the three months ended March 31, 2023 and 2022, was $ 1.1 million and $ 1.0 million, respectively. No impairment charges were recognized related to long-lived assets for the for the three months ended March 31, 2023 and 2022. Amortization expense related to change in useful life of a certain definite-lived intangible asset for the three months ended March 31, 2023 and 2022, was $ 0.2 million and $ 0 , respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Current Liabilities | Note 7 Accrued Expenses and Other Current Liabilities Accrued Expenses The Company’s accrued expenses consisted of the following (dollars in thousands): March 31, 2023 December 31, 2022 Accrued charitable contributions $ 3,558 $ 3,067 Accrued compensation 2,611 1,534 Sales tax payable 1,354 1,357 Accrued professional and program fees 5,424 4,008 Other 665 999 Total $ 13,612 $ 10,965 Accrued charitable contributions includes amounts the Company has pledged related to charitable meal donations. The Company uses a portion of tips received to make a charitable cash donation to third parties who use the funds to provide meals to those in need. For the three months ended, 2023 and 2022, the Company pledged $ 2.5 million and $ 1.0 million related to charitable donations, respectively. These costs are expensed as incurred and are presented within other general and administrative expenses in the condensed consolidated statements of operations. Other Current Liabilities The Company’s other current liabilities consisted of the following (dollars in thousands): March 31, 2023 December 31, 2022 Deferred transaction costs $ 3,150 $ 3,150 Other 1,032 1,161 Total $ 4,182 $ 4,311 Other current liabilities includes $ 3.2 million in deferred transaction costs associated with the Business Combination. These transaction costs were also capitalized and included within APIC in the condensed consolidated balance sheets. Other current liabilities also includes $ 0.7 million in unearned revenue. |
Convertible Note Payable
Convertible Note Payable | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Convertible Note Payable | Note 8 Convertible Note Payable On March 21, 2022, the Company entered into a Convertible Note Purchase Agreement (“Purchase Agreement”) with FTX Ventures Ltd., (the “Purchaser”) owner of FTX US (“FTX”), providing for the purchase and sale of a convertible note in the initial principal amount of $ 100.0 million (the “Note”). The Note bears interest at a rate of 3.00 % per year (compounded semiannually), payable semi-annually in arrears on June 30th and December 31st of each year. Interest may be paid in-kind or in cash, at the Company’s option. Forty-eight months (the “Maturity Date”) after the date of the initial issuance of the Note (the “Issuance Date”), the Company will pay the Purchaser the sum of (i) the outstanding principal amount of the Note, plus (ii) all accrued but unpaid interest thereon, plus (iii) all expenses incurred by the Purchaser (the “Redemption Price”). Payment of the Redemption Price on the Maturity Date will constitute a redemption of the Note in whole. During the term of the Note, the Note will be convertible into shares of the Company’s Class A Common Stock, at the option of the Purchaser, upon delivery on one or more occasions of a written notice to the Company electing to convert the Note or all of any portion of the outstanding principal amount of the Note. The initial conversion price of the Note is $ 320.00 per share of Common Stock (t he “Conversion Price”). The Conversion Price of the Note is subject to adjustment for stock splits, dividends or distributions, recapitalizations, spinoffs or similar transactions. The Note and the shares of Common Stock issuable upon conversion of the Note have not been registered under the Securities Act and may not be offered or sold absent registration or an applicable exemption from registration requirements. Beginning on the twenty-four-month anniversary of the Issuance Date continuing until the Maturity Date, if the closing price of the Common Stock equals or exceeds 175 % of the Conversion Price for 20 out of the 30 consecutive trading days ending immediately preceding the delivery of the notice of the Company’s election to convert the Note, the Note will be convertible into shares of Common Stock at the option of the Company, upon delivery of a written notice to the Purchaser electing to convert the Note or all or any portion of the outstanding principal amount of the Note. At any time prior to the Maturity Date, the Company may, in its sole discretion and upon delivery of a written notice to the Purchaser electing to prepay the Note, prepay the Note without penalty by paying the Purchaser 100 % of the Redemption Price. Once the Redemption Price has been delivered to the Purchaser, the Note will be canceled and retired. The effective interest rate as of March 31, 2023 was 3.01 %. As of March 31, 2023, the outstanding balance of the Note, including paid in-kind interest, was $ 103.1 million. |
Warrant Liabilities
Warrant Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Warrant Liabilities | Note 9 Warrant Liabilities As of March 31, 2023, there were 198,251 public warra nts (“Public Warrants”) outstanding and 159,382 private p lacement warrants (“Private Warrants”) outstanding. Public Warrants may only be exercised for a whole number of shares. No fractional Public Warrants were issued upon separation of the units into their component parts upon the closing of the Business Combination and only whole Public Warrants trade. The Public Warrants are exercisable, provided that the Company continues to have an effective registration statement under the Securities Act covering the shares of Class A Common Stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company filed a registration statement covering the shares of Class A Common Stock issuable upon exercise of the Public Warrants and the Private Warrants. If the Company’s shares of Class A Common Stock are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, it will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. The Public Warrants and the Private Warrants have an exercise price of $ 368.00 per share, subject to adjustments and will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. Redemption of Public Warrants when the price per share of Class A Common Stock equals or exceeds $ 576.00 : Once the Public Warrants become exercisable, the Company may redeem the outstanding Public Warrants for cash: in whole and not in part; at a price of $ 0.32 per warrant; upon a minimum of 30 days prior written notice of redemption; and if, and only if, the closing price of Class A Common Stock equals or exceeds $ 576.00 per share (as adjusted) for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. The Company will not redeem the Public Warrants as described above unless an effective registration statement under the Securities Act covering the Class A Common Stock issuable upon exercise of the warrants is effective and a current prospectus relating to those shares of Class A Common Stock is available throughout the 30-day redemption period. Redemption of Public Warrants for when the price per share of Class A Common Stock equals or exceeds $ 320.00 : Once the Public Warrants become exercisable, the Company may redeem the outstanding Public Warrants: in whole and not in part; at $ 3.20 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined by reference to an agreed table based on the redemption date and the “fair market value” (as defined below) of the Class A Common Stock; and if, and only if, the closing price of Class A Common Stock equals or exceeds $ 320.00 per Public Share (as adjusted) for any 20 trading days within the 30 -trading day period ending three trading days bef ore the Company sends notice of redemption to the warrant holders. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A Common Stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, the Public Warrants will not be adjusted for issuance of Class A Common Stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. The Private Warrants are identical to the Public Warrants, except that the Private Placement Warrants will be non-redeemable so long as they are held by VPC Impact Acquisition Holdings Sponsor III, LLC, which was the sponsor of VPCC and an affiliate of certain of VPCC’s officers and directors prior to the Business Combination, (the “Sponsor”) or its permitted transferees. If the Private Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. Contemporaneously with the execution of the Debt Facility, the Company issued warrants to the Lenders as consideration for entering into the Debt Facility, representing a loan commitment fee. The warrants vest and become exercisable based on the Company’s aggregated draw on the Debt Facility in incremental $ 10.0 million tranches and terminate upon the earliest to occur of (i) the fifth anniversary of the occurrence of a qualified financing event and (ii) the consummation of a liquidity event. The holders of the warrants have the ability to exercise their right to acquire a number of common shares equal to 0.2 % of the fully diluted equity of the Company as of the closing date (“Equity Closing Date”) of the Company’s next equity financing with proceeds of at least $ 40.0 million (“Qualified Financing Event”) or immediately prior to the consummation of a liquidity event. The exercise price of the warrants is the greater of (i) 80 % of the fair market value of each share of Common Stock at the Equity Closing Date and (ii) $ 120.0656 per share, subject to certain down-round adjustments. The warrants meet the definition of a derivative under ASC 815 and will be accounted for as a liability at fair value and subsequently remeasured to fair value at the end of each reporting period with the changes in fair value recorded in the condensed consolidated statement of operations. The initial offsetting entry to the warrant liability was an asset recorded to reflect the loan commitment fee. The loan commitment fee asset will be amortized to interest expense over the commitment period of four years. The Company estimated the fair value of the warrants at the issuance date to be $ 0.1 million using the Black-Scholes option-pricing model. Determining the fair value of these warrants under this model requires subjective assumptions. These estimates involve inherent uncertainties and the application of management’s judgment. Immediately prior to the close of the Business Combination, all, or 1,664,394 of the vested warrants were exercised and net settled for 14,087 shares of Legacy Dave’s Class A Common Stock after applying the Exchange Ratio. |
Debt Facility
Debt Facility | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Facility | Note 10 Debt Facility In January 2021, Dave OD Funding I, LLC (“Borrower”) entered into a delayed draw senior secured loan facility (the “Debt Facility”) with Victory Park Management, LLC (“Agent”), allowing the Borrower to draw up to $ 100 million from various lenders associated with Victory Park Management, LLC (the “Lenders”). The Debt Facility has an interest rate of 6.95 % annually plus a base rate defined as the greater of three-month LIBOR (as of the last business day of each calendar month) and 2.55 % . Interest is payable monthly in arrears. The Debt Facility has certain financial covenants, including a requirement to maintain a minimum cash, cash equivalents, or marketable securities balance of $ 8.0 million. A s of March 31, 2023, the Company was in compliance with all covenants. Payments of the loan draws are due at the following dates: (i) within five business days after the date of receipt by the Borrower and the Company (each, a “Credit Party”) or any of their subsidiaries of any net cash proceeds in excess of $ 250 thousand in the aggregate during any fiscal year from any asset sales (other than certain permitted dispositions), the Borrower shall prepay the loans or remit such net cash proceeds in an aggregate amount equal to 100 % of such net cash proceeds; (ii) within five business days after the date of receipt by any Credit Party or any of their subsidiaries, or the Agent as loss payee, of any net cash proceeds from any destruction or taking, the Borrower shall prepay the loans or remit such net cash proceeds in an aggregate amount equal to 100 % of such net cash proceeds; (iii) within three business days after the date of receipt by any Credit Party or any of their subsidiaries of any net cash proceeds from the incurrence of any indebtedness of any Credit Party or any of their subsidiaries (other than with respect to permitted indebtedness), the Borrower shall prepay the loans or remit such net cash proceeds in an aggregate amount equal to 100 % of such net cash proceeds; and (iv) (a) if extraordinary receipts are received by any Credit Party in the aggregate amount in any fiscal year in excess of $ 250 thousand or (b) if an event of default has occurred and is continuing at any time when any extraordinary receipts are received by any Credit Party, then within five business days of the receipt by any Credit Party of any such extraordinary receipts, the Borrower shall prepay the loans or remit such net cash proceeds in an aggregate amount equal to (x) 100 % of such extraordinary receipts in excess of $ 250 thousand in respect of clause (a) above and (y) 100 % of such extraordinary receipts in respect of clause (b) above. As of March 31, 2022 and December 31, 2022, the Company had drawn $ 75.0 million on the Debt Facility and had made no repayments. The debt facility matures in January 2025 . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 Commitments and Contingencies From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or claims will have a significant adverse effect on the Company’s business, financial condition, results of operations, or cash flows. Martinsek v. Dave Inc. (filed January 9, 2020 in the California Superior Court for the County of Los Angeles) In January 2020, a former employee of the Company filed a complaint in the California Superior Court for the County of Los Angeles against the Company and the Company’s Chief Executive Officer, asserting claims for, among other things, breach of contract, breach of fiduciary duty, conversion, and breach of the implied covenant of good faith and fair dealing. The Company settled this matter in January 2023 for approximately $ 6.0 million. which was included in the Legal settlement accrual within the condensed consolidated balance sheet for the period ended December 31, 2022. Stoffers v. Dave Inc. (filed September 16, 2020 in LA County Superior Court) This is a purported class action lawsuit filed in connection with a July 2020 data breach. The Company is in the process of settling this matter and the estimated settlement amount of approximately $ 3.2 million is included in the Legal settlement accrual within the condensed consolidated balance sheets for the period ended March 31, 2023 and December 31, 2022. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 12 Leases In December 2018, the Company entered into a sublease agreement with PCJW Properties LLC (“PCJW”), controlled by Company’s founders (including the Company’s current CEO), for general office space next to the aforementioned leased property in Los Angeles, California. The lease term is five years subject to early termination by either party. The current monthly lease paymen t is $ 0.006 million, subject to an annual escalation of 4 %. In January 2019, the Company entered into a lease agreement with PCJW for office space located in Los Angeles, California. The lease term is seven years , beginning January 1, 2019 and ending December 31, 2025. The current monthly lease payment is $ 0.02 million, subject to an annual escalation of 5 %. In May 2020, the Company entered into a sublease with Whalerock for general office space in West Hollywood, California. Under the terms of the sublease, the lease term is approximately 12 months and the monthly rent was approximately $ 0.1 million. The Company began utilizing the office space in June 2021. The lease was abandoned in August 2022. All leases were classified as operating and operating lease expenses are presented within Other operating expenses in the condensed consolidated statements of operations. The Company does not have any finance leases or sublease arrangements where the Company is the sublessor. The Company’s leasing activities are as follows (in thousands): For the Three Months Ended March 31, 2023 March 31, 2022 Operating lease cost $ 82 $ 503 Short-term lease cost - 6 Total lease cost $ 82 $ 509 For the Three Months Ended March 31, 2023 March 31, 2022 Other information: Cash paid for operating leases $ 88 $ 532 Weighted-average remaining lease term - operating lease 2.64 1.96 Weighted-average discount rate - operating lease 10 % 10 % The future minimum lease payments as of March 31, 2023, were as follows (in thousands): Year Related-Party Commitment 2023 (remaining) $ 251 2024 295 2025 310 Thereafter - Total minimum lease payments $ 856 Less: imputed interest ( 102 ) Total lease liabilities $ 754 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 13 Fair Value of Financial Instruments The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3) (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 34,423 $ — $ — $ 34,423 Short-term investments — 108,831 — 108,831 Total assets $ 34,423 $ 108,831 $ — $ 143,254 Liabilities Warrant liabilities - public warrants $ 140 $ — $ — $ 140 Warrant liabilities - private warrants - — 176 176 Earnout liabilities - — 28 28 Total liabilities $ 140 $ — $ 204 $ 344 December 31, 2022 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 285 $ — $ — $ 285 Short-term investments — 168,789 — 168,789 Total assets $ 285 $ 168,789 $ — $ 169,074 Liabilities Warrant liabilities - public warrants $ 209 $ — $ — $ 209 Warrant liabilities - private warrants - — 254 254 Earnout liabilities - — 53 53 Total liabilities $ 209 $ — $ 307 $ 516 The Company had no assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2023 and December 31, 2022. The Company also has the following financial instruments not measured at fair value. The Company has evaluated cash (Level 1), restricted cash (Level 1), Member advances (Level 2), accounts payable (Level 2) and accrued expenses (Level 2), and believes the carrying value approximates the fair value due to the short-term nature of these balances. The fair value of the debt facility (Level 2) and convertible note payable (level 2) approximate their carrying values. Marketable Securities: The Company evaluated the quoted market prices in active markets for its marketable securities and has classified its securities as Level 1. The Company’s investments in marketable securities are exposed to price fluctuations. The fair value measurements for the securities are based upon the quoted prices of similar items in active markets multiplied by the number of securities owned. Short-Term Investments: The following describes the valuation techniques used by the Company to measure the fair value of short-term investments held as of March 31, 2023 and December 31, 2022. U.S. Government Securities The fair value of U.S. government securities is estimated by independent pricing services who use computerized valuation formulas to calculate current values. U.S. government securities are categorized in Level 2 of the fair value hierarchy. Corporate Bonds and Notes The fair value of corporate bonds and notes is estimated by independent pricing services who use computerized valuation formulas to calculate current values. These securities are generally categorized in Level 2 of the fair value hierarchy or in Level 3 when market-based transaction activity is unavailable and significant unobservable inputs are used. Asset-Backed Securities The fair value of these asset-backed securities is estimated by independent pricing services who use computerized valuation formulas to calculate current values. These securities are generally categorized in Level 2 of the fair value hierarchy or in Level 3 when market-based transaction activity is unavailable and significant unobservable inputs are used. Public Warrants: As discussed further in Note 9, Warrant Liabilities, in January 2022, upon completion of the Business Combination, public warrants were automatically converted to warrants to purchase Common Stock of the Company. These public warrants met the definition of a derivative under ASC 815, and due to the terms of the warrants, were required to be liability classified. This warrant liability was initially recorded as a liability at fair value, with the offsetting entry recorded as a non-cash expense within the statement of operations. The derivative liability was subsequently recorded at fair value at each reporting period, with changes in fair value reflected in earnings. The gain related to the change in fair value of the public warrant liability for three months ended March 31, 2023 was $ 0.07 million, which is presented within changes in fair value of public warrant liabilities in the condensed consolidated statements of operations. A roll-forward of the Level 1 public warrant liability is as follows (dollars in thousands): Opening value at January 1, 2023 $ 209 Change in fair value during the period ( 69 ) Ending value at March 31, 2023 $ 140 Private Warrants: As discussed further in Note 9, Warrant Liabilities, in January 2022, upon completion of the Business Combination, private warrants were automatically converted to warrants to purchase Common Stock of the Company. These private warrants met the definition of a derivative under ASC 815, and due to the terms of the warrants, were required to be liability classified. This warrant liability was initially recorded as a liability at fair value, with the offsetting entry recorded as a non-cash expense within the condensed consolidated statement of operations. The derivative liability was subsequently recorded at fair value at each reporting period, with changes in fair value reflected in earnings. The gain related to the change in fair value of the private warrant liability for the three months ended March 31, 2023 was $ 0.08 million, which is presented within changes in fair value of private warrant liabilities in the condensed consolidated statements of operations. A roll-forward of the Level 3 private warrant liability is as follows (dollars in thousands): Opening value at January 1, 2023 $ 253 Change in fair value during the period ( 77 ) Ending value at March 31, 2023 $ 176 The Company used a Black-Scholes option pricing model to determine the fair value of the private warrant liability. The following table presents the assumptions used to value the private warrant liability for the three months ended March 31, 2023: Exercise price $ 368.00 Expected volatility 119.5 % Risk-free interest rate 3.7 % Remaining term 3.76 Dividend yield 0 % Earnout Shares Liability: As part of the reverse recapitalization, 49,563 shares of C lass A Common Stock held by founders of VPCC are subject to forfeiture if the vesting condition is not met over the five year term following the closing date of the Business Combination (“Founder Holder Earnout Shares”). These Founder Holder Earnout Shares were initially recorded as a liability at fair value and subsequently recorded at fair value at each reporting period, with changes in fair value reflected in earnings. The gain related to the change in fair value of the Founder Holder Earnout Shares liabilities for the three months ended March 31, 2023 was $ 0.03 million, which is presented within changes in fair value of earnout liabilities in the condensed consolidated statements of operations. A roll-forward of the Level 3 Founder Holder Earnout Shares liability is as follows (dollars in thousands): Opening value at January 1, 2023 $ 53 Change in fair value during the period ( 25 ) Ending value at March 31, 2023 $ 28 The Company used a Monte Carlo Simulation Method to determine the fair value of the Founder Holder Earnout Shares liability. The following table presents the assumptions used to value the Founder Holder Earnout Shares liability for the three months ended March 31, 2023: Exercise price $ 400 -$ 480 Expected volatility 90.3 % Risk-free interest rate 3.7 % Remaining term 3.77 Dividend yield 0 % There were no other assets or liabilities that were required to be measured at fair value on a recurring basis as of March 31, 2023 and March 31, 2022. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 14 Stockholders’ Equity As of March 31, 2023, no shares of preferred stock were outstanding, and the Company has no present plans to issue any shares of preferred stock. Pursuant to the terms of the Company’s amended and restated certificate of incorporation, shares of preferred stock may be issued from time to time in one or more series. The Company’s Board of Directors is authorized to fix the voting rights, if any, designations, powers and preferences, the relative, participating, optional or other special rights, and any qualifications, limitations and restrictions thereof, applicable to the shares of each series of preferred stock. The Company’s Board of Directors is able to, without stockholder approval, issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the common stock and could have anti-takeover effects. The ability of the Company’s Board of Directors to issue preferred stock without stockholder approval could have the effect of delaying, deferring or preventing a change of control or the removal of existing management. Class A and Class V Common Stock: The Company’s Board of Directors has authorized two classes of common stock, Class A Common Stock and Class V Common Stock. The Company had authoriz ed 500,000,000 and 100,000,000 sh ares of Class A Common Stock and Class V Common Stock, respectively. Shares of Class V Common Stock have 10 votes per share , while shares of Class A Common Stock have one vote per share . The holders of shares of Class A Common Stock and Class V Common Stock shall at all times vote together as a single class on all matters (including the election of directors) submitted to a vote of the Company’s stockholders. Shares of Class V Common Stock a re convertible into shares of Class A Common Stock on a one -to-one basis at the option of the holders of Class V Common Stock at any time upon written notice to the Company. As of March 31, 2023, the Company had 10,402,531 and 1,514,082 shares of Class A Common Stock and Class V Common Stock issued, respectively. As of March 31, 2023, the Company had 10,352,968 and 1,514,082 shares of Class A Common Stock and Class V Common Stock outstanding, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 15 Stock-Based Compensation In 2017, the Company’s Board of Directors adopted the Dave Inc. 2017 Stock Plan (the “2017 Plan”). The 2017 Plan authorized the award of stock options, restricted stock, and restricted stock units. On January 4, 2022, the stockholders of the Company approved the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan was previously approved, subject to stockholder approval, by the Company’s Board of Directors on January 4, 2022. Upon the consummation of the Business Combination with VPCC, the 2017 Plan was terminated and replaced by the 2021 Plan. The maximum term of stock options granted under the 2021 Plan is 10 years and the awards generally vest over a four-year period. On January 4, 2022, the stockholders of the Company approved the 2021 Equity Incentive Plan (the “2021 Plan”). The 2021 Plan was previously approved, subject to stockholder approval, by the Company’s Board of Directors on January 4, 2022. The 2021 Plan became effective immediately upon the completion of the Business Combination. The Company recognized $ 6.8 million and $ 3.2 million of stock-based compensation expense arising from stock option and restricted stock unit grants which is recorded as a component of compensation and benefits in the condensed consolidated statements of operations for the three months ended March 31, 2023 and 2022, respectively. Stock Options: Management has valued stock options at their date of grant utilizing the Black-Scholes option pricing model. The fair value of the underlying shares was estimated by using a number of inputs, including recent arm’s length transactions involving the sale of the Company’s common stock. The Company did no t grant any stock options during the three months ended March 31, 2023 and 2022, respectively. Expected term —The expected term represents the period of time that options are expected to be outstanding. As the Company does not have sufficient historical exercise behavior, it determines the expected life assumption using the simplified method, which is an average of the contractual term of the option and its vesting period. Risk free interest rate —The risk-free interest rate is based on the implied yield available on U.S. Treasury issues with an equivalent term approximating the expected life of the options depending on the date of the grant and expected life of the options. Expected dividend yield —The Company bases the expected dividend yield assumption on the fact that it has never paid cash dividends and has no present intention to pay cash dividends. Expected volatility —Due to the Company’s limited operating history and lack of company-specific historical or implied volatility, the expected volatility assumption is based on historical volatilities of a peer group of similar companies whose share prices are publicly available. The Company identified a group of peer companies and considered their historical stock prices. In identifying peer companies, the Company considered the industry, stage of life cycle, size, and financial leverage of such other entities. Activity with respect to stock options is summarized as follows: Shares Weighted-Average Weighted- Aggregate Options outstanding, January 1, 2023 904,220 $ 21.04 7.3 $ 655 Granted - $ - Exercised ( 994 ) $ 1.01 Forfeited ( 38,414 ) $ 23.05 Expired ( 16,501 ) $ 22.11 Options outstanding, March 31, 2023 848,311 $ 20.95 6.9 $ 387 Nonvested options, March 31, 2023 480,297 $ 23.13 7.9 $ - Vested and exercisable, March 31, 2023 368,014 $ 18.10 5.7 $ 387 At March 31, 2023, total estimated unrecognized stock-based compensation cost related to unvested stock options prior to that date was approximately $ 10.3 million, which is expected to be recognized over a weighted-average remaining period of 3.6 years. The Company allowed certain stock option holders to exercise unvested options to purchase shares of Common Stock. Shares received from such early exercises are subject to repurchase in the event of the optionee’s employment termination, at the original issuance price, until the options are fully vested. As of March 31, 2023 and March 31, 2022 , 2,777 and 13,887 shares of Common Stock were subject to repurchase at a weighted-average price of $ 22.09 per share. The shares issued pursuant to unvested options have been included in shares issued and outstanding on the condensed consolidated balance sheets as such shares are considered legally outstanding. On March 3, 2021, the Company granted the Chief Executive Officer stock options to purchase up to 358,001 shares of Common Stock in nine tranches. Each of the nine tranches contain service, market and performance conditions. The market conditions relate to the achievement of certain specified price targets. Vesting commences on the grant date; however, no compensation charges are recognized until the service and performance condition are probable, which is upon the completion of a liquidity event, the achievement of specified price targets for each tranche of shares, and continuous employment. Upon the completion of the Business Combination, the performance condition was met and the Company recorded a cumulative stock-based compensation expense of $ 1.9 million. The options have a strike price of $ 23.18 per share. The Company determined the fair value of the options on the grant date to be $ 10.5 million using a Monte Carlo simulation with key inputs and assumptions such as stock price, term, dividend yield, risk-free interest rate, and volatility. The derived service periods determined by the valuation for each of the nine tranches range from approximately 3 years to approximately 7 years . Each tranche will be expensed monthly over the derived service period unless vesting conditions for a particular tranche are met, at which point all remaining compensation charges related to that particular tranche will be expensed in the period in which the vesting conditions were met. The following table presents the key inputs and assumptions used to value the options granted to the Chief Executive Officer on the grant date: Remaining term 10.0 years Risk-free interest rate 1.5 % Expected dividend yield 0.0 % Expected volatility 40.0 % Restricted Stock Units: Activity with respect to RSUs is summarized as follows: Shares Weighted-Average Nonvested shares at January 1, 2023 508,506 $ 122.27 Granted 1,441,747 $ 7.07 Vested ( 67,317 ) $ 97.44 Forfeited ( 178,773 ) $ 34.41 Nonvested shares at March 31, 2023 1,704,163 $ 35.00 At March 31, 2023, total estimated unrecognized stock-based compensation cost related to nonvested RSUs was approximately $ 56.9 million, which is expected to be recognized over a weighted-average period of 2.7 years. During the quarter ended March 31, 2023, the Company granted 629,454 RSUs to certain employees in six tranches. Each of the six tranches contain service and market conditions. The market conditions relate to the achievement of certain specified price targets. Vesting commences on the grant date and the Company determined the fair value of the RSUs on the grant date to be approximately $ 3.0 million using a Monte Carlo simulation with key inputs and assumptions such as stock price, term, risk-free interest rate, and volatility. The derived service periods determined by the valuation for each of the six tranches range from approximately 2 years to approximately 3 years. Each tranche will be expensed monthly over the derived service period unless vesting conditions for a particular tranche are met, at which point all remaining compensation charges related to that particular tranche will be expensed in the period in which the vesting conditions were met. The following table presents the key inputs and assumptions used to value the RSUs that contain service and market conditions on the grant date: Remaining term 5.0 years Risk-free interest rate 3.5 % Expected volatility 79.7 % |
Related-Party Transactions
Related-Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 Related-Party Transactions Leasing Arrangements: For the three months ended March 31, 2023 and 2022, the Company paid $ 0.09 million and $ 0.08 million, respectively, under lease agreements with PCJW for general office space in Los Angeles, California. The following is a schedule of future minimum rental payments as of March 31, 2023, under Company’s sub-lease for the properties located in Los Angeles, California signed with PCJW (in thousands): Year Related-Party Commitment 2023 $ 251 2024 295 2025 310 Thereafter - Total minimum lease payments $ 856 Less: imputed interest ( 102 ) Total lease liabilities $ 754 The related-party components of the lease right-of-use assets, lease liabilities, short-term, and lease liabilities, long-term are presented as part of the right-of-use asset and lease liability on the condensed consolidated balance sheets. VPCC Financing Agreement A Senior Partner at Victory Park Capital Advisors, LLC joined the board of directors of the Company upon closing of the Business Combi nation. For more information about the VPC Financing Agreement, refer to Note 10, Debt Facility. |
401(k) Savings Plan
401(k) Savings Plan | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits [Abstract] | |
401(k) Savings Plan | Note 17 401(k) Savings Plan The Company maintains a 401(k) savings plan for the benefit of its employees. Employees can defer up to 90 % of their compensation subject to fixed annual limits. All current employees are eligible to participate in the 401(k) savings plan. Beginning January 2021, the Company began matching contributions to the 401(k) savings plan equal to 100 % of the first 4 % of wages deferred by each participating employee. The Company incurred expenses for employer matching contributions of $ 0.5 million and $ 0.4 million for the three months ended March 31, 2023 and 2022, respectively. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 18 Subsequent Events Subsequent events are events or transactions that occur after the condensed consolidated balance sheet date, but before the condensed consolidated financial statements are available to be issued. The Company recognizes in the condensed consolidated financial statements the effects of all subsequent events that provide additional evidence about conditions that existed at the date of the condensed consolidated balance sheet, including the estimates inherent in the process of preparing the condensed consolidated financial statements. The Company’s condensed consolidated financial statements do not recognize subsequent events that provide evidence about conditions that did not exist at the date of the condensed consolidated balance sheet but arose after the condensed consolidated balance sheet date and before the condensed consolidated financial statements were available to be issued. Stock Option Repricing In April 2023, the Company’s board of directors approved a stock option repricing, which is subject to stockholder approval, whereby 337,053 previously granted and unexercised options with exercise prices between $ 22.09 and $ 23.18 per share held by service providers of the Company as of the date approved by its stockholders (the “Repricing Date”), would be repriced to the volume weighted average per share closing price of the Company’s common stock on The Nasdaq Stock Market for the thirty (30) trading days ending on and including the Repricing Date. There were no changes in the vesting schedule or maturity term of the options. The Company expects to record the impact of the option repricing in the quarter ending June 30, 2023. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Basis of Presentation | Basis of Presentation These unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). On January 4, 2023, the Board approved an amendment to the Company’s certificate of incorporation to complete a 1-for-32 reverse stock split effective January 5, 2023 . At a special meeting held on December 16, 2022, stockholders approved the reverse stock split. The primary goal of the reverse stock split was to bring the Company’s stock price above the share bid price requirement for continued listing on Nasdaq. The effects of the reverse stock split have been reflected in the condensed consolidated financial statements and the footnotes. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and a variable interest entity (“VIE”). All intercompany transactions and balances have been eliminated upon consolidation. In accordance with the provisions of Accounting Standards Codification (“ASC”) 810, Consolidation, the Company consolidates any VIE of which the Company is the primary beneficiary. The typical condition for a controlling financial interest ownership is holding a majority of the voting interests of an entity; however, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve controlling voting interests. ASC 810 requires a variable interest holder to consolidate a VIE if that party has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company does not consolidate a VIE in which it has a majority ownership interest when it is not considered the primary beneficiary. The Company evaluates its relationships with its VIEs on an ongoing basis to ensure that the Company continues to be the primary beneficiary. The Company is considered the primary beneficiary of Dave OD Funding I, LLC (“Dave OD”), as it has the power over the activities that most significantly impact the economic performance of Dave OD and has the obligation to absorb expected losses and the right to receive expected benefits that could be significant, in accordance with accounting guidance. As a result, the Company consolidated Dave OD and all intercompany accounts have been eliminated. The carrying value of Dave OD’s assets and liabilities, after elimination of any intercompany transactions and balances are shown in the condensed consolidated balance sheets. The assets of Dave OD are restricted and its creditors have full recourse against the Company for its liabilities. |
Use of Estimates | Use of Estimates The preparation of these unaudited condensed consolidated financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements, as well as the reported revenues and expenses incurred during the reporting periods. The Company’s estimates are based on its historical experience and on various other factors that the Company believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. The Company’s critical accounting estimates and assumptions are evaluated on an ongoing basis including those related to the: (i) Fair value of warrant liabilities; (ii) Fair value of earnout liabilities; (iii) Allowance for credit losses; and (iv) Income taxes. Actual results may differ from these estimates under different assumptions or conditions. |
Revenue Recognition | Revenue Recognition Below is detail of operating revenues (in thousands): For the Three Months Ended March 31, 2023 2022 Service based revenue, net Processing fees, net $ 33,002 $ 21,051 Tips 13,760 13,948 Subscriptions 5,619 4,153 Other 195 116 Transaction based revenue, net 6,352 3,283 Total $ 58,928 $ 42,551 Service Based Revenue, Net Service based revenue, net primarily consists of optional tips, optional processing fees, and subscriptions charged to Members, net of processor costs associated with advance disbursements. Member advances are treated as financial receivables under ASC 310 Receivables (“ASC 310”) and processing fees, net and tips are also accounted for in accordance with ASC 310. |
Processing Fees, Net | Processing Fees, Net: Processing fees apply when a Member requests an expedited cash advance. At the Member’s election, the Company expedites the funding of advance funds within eight hours, as opposed to the customary three business days, of the advance approval. Processing fees are nonrefundable loan origination fees and are recognized as revenues over the average expected contractual term of its advances. Costs incurred by the Company to fund cash advances are treated as direct loan origination costs. These direct loan origination costs are netted against advance-related income over the average expected contractual term of its advances. Direct origination costs recognized as a reduction of advance-related income during the three months ended March 31, 2023 and 2022, we re $ 1.3 mi llion and $ 0.9 million, respectively. |
Tips | Tips: The Company encourages, but does not contractually require its Members who receive a cash advance to leave a discretionary tip. The Company treats tips as an adjustment of yield to the advances and are recognized over the average expected contractual term of its advances. |
Subscriptions | Subscriptions: The Company accounts for subscriptions in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). Under ASC 606, the Company must identify the contract with a Member, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when (or as) the Company satisfies the performance obligations. For revenue sources that are within the scope of Topic 606, the Company fully satisfies its performance obligations and recognizes revenue in the period it is earned as services are rendered. Transaction prices are typically fixed, charged on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying ASC 606 that significantly affects the determination of the amount and timing of revenue from contracts with the Company’s Members. Sources of revenue from contracts with Members that are in the scope of ASC 606 include subscription fees, lead generation fees and reward program fees. Subscription fees of $ 1 are received on a monthly basis from Members who subscribe to the Company’s application. The Company continually fulfills its obligation to each Member over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably as the Member receives and consumes the benefits of the platform throughout the contract period. Price concessions granted to Members who have insufficient funds when subscription fees are due are forms of variable consideration under the Company’s contracts with Members. For price concessions, the Company has elected, as an accounting policy, to account for price concessions for the month at the end of the reporting month based on the actual amount of concessions granted as the impact is considered insignificant. Other service based revenue consists of lead generation fees from the Company’s Side Hustle advertising partners. Transaction Based Revenue, Net: Transaction based revenue, net primarily consists of interchange and ATM revenues from the Company’s Checking Product, net of certain interchange and ATM-related fees, fees earned from withdrawal-related transactions, volume support from a certain co-branded agreement, and deposit referrals and are recognized at the point in time the transactions occur, as the performance obligations are satisfied and the variable consideration is not constrained. The Company earns interchange fees from Members spend on Dave-branded debit cards, which are reduced by interchange-related costs payable to fulfillment partners. Interchange revenue is remitted by merchants and represents a percentage of the underlying transaction valu e processed through a payment network. ATM fees earned from the Member’s usage of out-of-network ATMs are reduced by related ATM transaction costs during the three months ended March 31, 2023 and 2022, were $ 0.3 and $ 0.1 million, respectively. |
Processing and Servicing Fees | Processing and Servicing Costs Processor costs consist of amounts paid to third party processors for the recovery of advances, tips, processing fees, and subscriptions. These expenses also include fees paid for services to connect Member’s bank accounts to the Company’s application. Except for processing and service fees associated with advance disbursements, which are recorded net against revenue, all other processing and service fees are expensed as incurred. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies all highly liquid instruments with an original maturity of three months or less as cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash primarily represents cash held at financial institutions that is pledged as collateral for specific accounts that may become overdrawn. |
Marketable Securities | Marketable Securities Marketable securities consist of a money market mutual fund. The fair value of marketable securities is determined by quoted prices in active markets and changes in fair value are recorded in other (income) expense in the condensed consolidated statements of operations. |
Short-Term Investments | Short-Term Investments Short-term investments consist of corporate bonds and notes, asset backed securities, and government securities and are classified as “available-for-sale”, as the sale of such securities may be required prior to maturity to implement the Company’s strategies. The fair value of short-term investments is determined by quoted prices in active markets with unrealized gains and losses (other than credit related impairment) reported as a separate component of other comprehensive income. For securities with unrealized losses, any credit related portion of the loss is recognized in earnings. If it is more likely than not that the Company will be unable or does not intend to hold the security to recovery of the non-credit related unrealized loss, the loss is recognized in earnings. Realized gains and losses are determined using the specific identification method and recognized in the condensed consolidated statements of comprehensive income. Any related amounts recorded in accumulated other comprehensive income are reclassified to earnings (on a pretax basis). |
Member Advances | Member Advances Member advances include ExtraCash advances, fees, and tips, net of certain direct origination costs and allowance for expected credit losses. Management’s intent is to hold advances until the earlier of repayment or payoff date. Members’ cash advances are treated as financial receivables under ASC 310. Advances to Members are not interest-bearing. The Company recognizes these advances at the advanced amount and does not use discounting techniques to determine present value of advances due to their short-term nature. The Company does not provide modifications to advances and does not charge late fees. |
Allowance for Credit Losses | Allowance for Credit Losses Member advances from contracts with Members as of the balance sheet dates are recorded at their original advance amounts, inclusive of outstanding processing fees and tips, and reduced by an allowance for expected credit losses. The Company pools its Member advances, all of which are short-term (average term of approximately 11 days) in nature and arise from contracts with Members, based on shared risk characteristics to assess their risk of loss, even when that risk is remote. The Company uses an aging method and historical loss rates as a basis for estimating the percentage of current and delinquent Member advances balances that will result in credit losses to derive the allowance for credit losses. The Company considers whether the conditions at the measurement date and reasonable and supportable forecasts about future conditions warrant an adjustment to its historical loss experience. In assessing such adjustments, the Company primarily evaluates current economic conditions, expectations of near-term economic trends and changes in customer payment terms, collection trends and cash collections subsequent to the balance sheet date. For the measurement dates presented herein, given its methods of collecting funds, and that the Company has not observed meaningful changes in its customers’ payment behavior, it determined that its historical loss rates remained most indicative of its lifetime expected losses. The Company immediately recognizes an allowance for expected credit losses upon the origination of the advance. Adjustments to the allowance each period for changes in the estimate of lifetime expected credit losses are recognized in operating expenses—provision for credit losses in the condensed consolidated statements of operations. When the Company determines that a Member advance is not collectible, the uncollectible amount is written-off as a reduction to both the allowance and the gross asset balance. Subsequent recoveries are recorded when received and are recorded as a recovery of the allowance for expected credit losses. Any change in the assumptions used in analyzing a specific Member advance may result in an additional allowance for expected credit losses being recognized in the period in which the change occurs. |
Internally Developed Software | Internally Developed Software Internally developed software is capitalized when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the software will be used as intended. Capitalized costs consist of salaries and other compensation costs for employees incurred for time spent on upgrades and enhancements to add functionality to the software and fees paid to third-party consultants who are directly involved in development efforts. These capitalized costs are included on the condensed consolidated balance sheets as intangible assets, net. Other costs are expensed as incurred and included within other operating expenses in the condensed consolidated statements of operations. Capitalized costs for the three months ended March 31, 2023 and 2022, were $ 1.9 million and $ 2.3 million, respectively. Amortization of internally developed software commences when the software is ready for its intended use (i.e., after all substantial testing is complete). Internally developed software is amortized over its estimated useful life of 3 years. The Company’s accounting policy is to perform annual reviews of capitalized internally developed software projects to determine whether any impairment indicators are present as of December 31, or whenever a change in circumstances suggests an impairment indicator is present. If any impairment indicators are present, the Company will perform a recoverability test by comparing the sum of the estimated undiscounted cash flows attributed to the asset group to their carrying value. If the undiscounted cash flows expected to result from the remaining use of the asset (i.e., cash flows when testing recoverability) are less than the asset group’s carrying value, the Company will determine the fair value of the asset group and recognize an impairment loss as the amount by which the carrying value of the asset group exceeds its fair value. If based on the results of the recoverability test, no impairment is indicated as the remaining undiscounted cash flows exceed the carrying value of the software asset group, the carrying value of the asset group as of the assessment date is deemed fully recoverable. In addition, the Company evaluates the remaining useful life of an intangible asset that is being amortized each reporting period to determine whether events and circumstances warrant a revision to the remaining period of amortization. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying value of the intangible asset shall be amortized prospectively over that revised remaining useful life. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Property and equipment are recorded at cost and depreciated over the estimated useful lives ranging from 3 to 7 years using the straight-line method. Maintenance and repair costs are charged to operations as incurred and included within other operating expenses in the condensed consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the impairment of long-lived assets, primarily property and equipment and amortizable intangible assets, whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. If the sum of the expected undiscounted future cash flows from an asset is less than the carrying amount of the asset, the Company estimates the fair value of the assets. The Company measures the loss as the amount by which the carrying amount exceeds its fair value calculated using the present value of estimated net future cash flows. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, Fair Value Measurement (“ASC 820”), provides a single definition of fair value and a common framework for measuring fair value as well as disclosure requirements for fair value measurements used in the condensed consolidated financial statements. Under ASC 820, fair value is determined based upon the exit price that would be received by a company to sell an asset or paid by a company to transfer a liability in an orderly transaction between market participants, exclusive of any transaction costs. Fair value measurements are determined by either the principal market or the most advantageous market. The principal market is the market with the greatest level of activity and volume for the asset or liability. Absent a principal market to measure fair value, the Company uses the most advantageous market, which is the market from which the Company would receive the highest selling price for the asset or pay the lowest price to settle the liability, after considering transaction costs. However, when using the most advantageous market, transaction costs are only considered to determine which market is the most advantageous and these costs are then excluded when applying a fair value measurement. ASC 820 creates a three-level hierarchy to prioritize the inputs used in the valuation techniques to derive fair values. The basis for fair value measurements for each level within the hierarchy is described below, with Level 1 having the highest priority and Level 3 having the lowest. Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than Level 1 quoted prices, such as quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active for identical or similar assets and liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Valuations are based on inputs that are unobservable and significant to the overall fair value measurement of the assets or liabilities. Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Concentration of Risk | Concentration of Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash and cash equivalents, restricted cash, Member cash advances, and short-term investments. The Company’s cash and cash equivalents and restricted cash in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limits were $ 51.0 million at March 31, 2023 and at $ 20.7 million at December 31, 2022, respectively. The Company’s payment processors also collect cash on the Company’s behalf and will hold these cash balances temporarily until they are settled the next business day. Also, the Company does not believe its marketable securities are exposed to any significant credit risk due to the quality and nature of the securities in which the money is held. No Member individually exceeded 10% or more of the Company’s Member cash advances balances as of March 31, 2023 and December 31, 2022. |
Leases | Leases ASC 842, Leases (“ASC 842”) requires lessees to recognize most leases on the condensed consolidated balance sheet with a corresponding right-of-use asset. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. Leases are classified as financing or operating which will drive the expense recognition pattern. Lease payments on short-term leases are recognized as expense on a straight-line basis over the lease term. At the time of a lease abandonment, the operating lease right-of-use asset is derecognized, while the corresponding lease liability is evaluated by the Company based any remaining contractual obligations as of the lease abandonment date. The Company leases office space under two separate leases, both of which are considered operating leases. Options to extend or terminate a lease are considered as part of calculating the lease term to the extent that the option is reasonably certain of exercise. The leases do not include the options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term. Covenants imposed by the leases include letters of credit required to be obtained by the lessee. The incremental borrowing rate (“IBR”) represents the rate of interest the Company would expect to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. When determinable, the Company uses the rate implicit in the lease to determine the present value of lease payments. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. |
Stock-Based Compensation | Stock-Based Compensation Stock Option Awards: ASC 718, Compensation-Stock Compensation (“ASC 718”), requires the estimate of the fair value of all stock-based payments to employees, including grants of stock options, to be recognized in the statement of operations over the requisite service period. Under ASC 718, employee option grants are generally valued at the grant date and those valuations do not change once they have been established. The fair value of each option award is estimated on the grant date using the Black-Scholes Option Pricing Model. As allowed by ASC 718, the Company’s estimate of expected volatility is based on its peer company average volatilities, including industry, stage of life cycle, size, and financial leverage. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant valuation. The Company recognizes forfeitures as they occur. Restricted Stock Unit Awards: Restricted stock units (“RSUs”) are valued on the grant date. The fair value of the RSUs that vest based solely on a service condition is equal to the estimated fair value of the Company’s Common Stock on the grant date. This compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. For RSUs that contain both a market condition and a service condition, market volatility and other factors are taken into consideration in determining the grant date fair value and the related compensation expense is recognized on a straight-line basis over the requisite service period of each separately vesting tranche, regardless of whether the market condition is satisfied, provided that the requisite service has been provided. These costs are a component of stock-based compensation expense, presented within compensation and benefits in the condensed consolidated statements of operations. The Company recognizes forfeitures as they occur. Restricted Stock Awards: Restricted stock awards (“RSAs”) are valued on the grant date. The fair value of the RSAs is equal to the estimated fair value of the Company’s Common Stock on the grant date. This compensation cost is recognized over the requisite service period as a component of stock-based compensation expense, presented within compensation and benefits in the condensed consolidated statements of operations. The Company recognizes forfeitures as they occur. RSAs Issued to Non-Employees: The Company issues shares of restricted stock to consultants for various advisory and consulting-related services. The Company recognized this expense, measured as the estimated value of the shares issued, as a component of stock-based compensation expense, presented within compensation and benefits in the condensed consolidated statements of operations. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising expense for the three months ended March 31, 2023 and 2022, were $ 9.5 million and $ 12.2 million, respectively, and are presented within advertising and marketing within the condensed consolidated statements of operations. |
Income Taxes | Income Taxes The Company follows ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the condensed consolidated financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the condensed consolidated financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more-likely-than-not that the asset will not be realized. The effective tax rate used for interim periods is the estimated annual effective tax rate, based on the current estimate of full year results, except that those taxes related to specific discrete events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. ASC 740 provides that a tax benefit from an uncertain tax position may be recognized when it is more-likely-than-not that the position will be sustained in a court of last resort, based on the technical merits. If more-likely-than-not, the amount recognized is the largest amount of tax benefit that is greater than 50 % likely of being realized on examination, including compromise settlements. For tax positions not meeting the more-likely-than-not threshold, no tax benefit is recorded. The Company has estimated $ 1.0 million and $ 0.9 million of uncertain tax positions as of March 31, 2023 and December 31, 2022, respectively, related to state income taxes. and federal and state research tax credits. The Company’s policy is to recognize interest expense and penalties accrued on any unrecognized tax benefits as a component of income tax expense within the statement of operations. The Company recognized $ 0.002 million and $ 0.001 million of interest expense and penalties as a component of income tax expense during the three months ended March 31, 2023 and 2022, respectively |
Segment Information | Segment Information The Company determines its operating segments based on how its chief operating decision makers manage operations, make operating decisions, and evaluate operating performance. The Company has determined that the Chief Operating Decision Maker (“CODM”) is a joint role shared by the Chief Executive Officer and Chief Financial Officer. Based upon the way the CODM reviews financial information and makes operating decisions and considering that the CODM reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance, the service-based and transaction-based operations constitute a single operating segment and one reportable segment. |
Net Loss Per Share Attributable to Stockholders | Net Loss Per Share Attributable to Stockholders The Company has two classes of participating securities (Class A Common Stock and Class V Common Stock) issued and outstanding as of March 31, 2023. Basic net loss attributable to holders of Common Stock per share is calculated by dividing net loss attributable to holders of Common Stock by the weighted-average number of shares outstanding, excluding shares issued in relation to unvested restricted stock awards and vested early exercise options funded by non-recourse notes (refer to Note 16, Related-Party Transactions for further details on the Company’s Loans to Stockholders). Diluted net loss per share attributable to holders of common stock adjusts the basic net loss per share attributable to stockholders and the weighted- average number of shares outstanding for the potentially dilutive impact of stock options, warrants, and restricted stock using the treasury stock method and convertible preferred stock using the as-if-converted method. The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to holders of common stock (in thousands, except share data): For the Three Months ended March 31, 2023 March 31,2022 Numerator Net loss $ ( 14,025 ) $ ( 32,795 ) Less: noncumulative dividend to convertible preferred stockholders - - Less: undistributed earnings to participating securities - - Net loss attributed to common stockholders—basic ( 14,025 ) ( 32,795 ) Add: undistributed earnings reallocated to common stockholders - - Net loss attributed to common stockholders—diluted $ ( 14,025 ) $ ( 32,795 ) Denominator Weighted-average shares of common stock—basic 11,815,448 11,259,025 Dilutive effect of convertible preferred stock - - Dilutive effect of equity incentive awards - - Weighted-average shares of common stock—diluted 11,815,448 11,259,025 Net loss per share Basic $ ( 1.19 ) $ ( 2.91 ) Diluted $ ( 1.19 ) $ ( 2.91 ) The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: For the Three Months ended March 31, 2023 March 31,2022 Stock options, RSU awards, and PSU awards 2,552,474 904,220 Convertible debt 312,500 312,500 Total 2,864,974 1,216,720 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. Recently Adopted Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”) . ASU 2016-13 introduced a new credit loss methodology, the Current Expected Credit Losses (“CECL”) methodology, which requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to maturity debt securities, trade receivables and other receivables measured at amortized cost at the time the financial asset is originated or acquired. Subsequent to the issuance of ASU 2016-13, the FASB issued several additional ASUs to clarify implementation guidance, provide narrow-scope improvements and provide additional disclosure guidance. The Company adopted this ASU on January 1, 2023 and determined that ASU 2016-13 had no material impact on the Company’s unaudited condensed consolidated financial statements and related disclosures. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional guidance for accounting for contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848), Deferral of the Sunset Date of Topic 848. The amendments in this Update defer the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The Company has evaluated the effect that the updated standard had on its internal processes, unaudited condensed consolidated financial statements, and related disclosures, and has determined that the adoption did not have a significant impact on its unaudited condensed consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Summary of operating revenues | Below is detail of operating revenues (in thousands): For the Three Months Ended March 31, 2023 2022 Service based revenue, net Processing fees, net $ 33,002 $ 21,051 Tips 13,760 13,948 Subscriptions 5,619 4,153 Other 195 116 Transaction based revenue, net 6,352 3,283 Total $ 58,928 $ 42,551 |
Schedule of Earnings Per Share Basic And Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to holders of common stock (in thousands, except share data): For the Three Months ended March 31, 2023 March 31,2022 Numerator Net loss $ ( 14,025 ) $ ( 32,795 ) Less: noncumulative dividend to convertible preferred stockholders - - Less: undistributed earnings to participating securities - - Net loss attributed to common stockholders—basic ( 14,025 ) ( 32,795 ) Add: undistributed earnings reallocated to common stockholders - - Net loss attributed to common stockholders—diluted $ ( 14,025 ) $ ( 32,795 ) Denominator Weighted-average shares of common stock—basic 11,815,448 11,259,025 Dilutive effect of convertible preferred stock - - Dilutive effect of equity incentive awards - - Weighted-average shares of common stock—diluted 11,815,448 11,259,025 Net loss per share Basic $ ( 1.19 ) $ ( 2.91 ) Diluted $ ( 1.19 ) $ ( 2.91 ) |
Summary of computation of diluted net loss (income) per share | The following potentially dilutive shares were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive: For the Three Months ended March 31, 2023 March 31,2022 Stock options, RSU awards, and PSU awards 2,552,474 904,220 Convertible debt 312,500 312,500 Total 2,864,974 1,216,720 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | Below is a detail of marketable securities (in thousands): March 31, 2023 December 31, 2022 Marketable securities $ 34,423 $ 285 Total $ 34,423 $ 285 |
Short-term investments (Tables)
Short-term investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-Sale [Table Text Block] | Below is a summary of short-term investments, which are measured at fair value as of March 31, 2023 (in thousands): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 97,887 $ - $ ( 952 ) $ 96,935 Asset-backed securities 8,885 20 - 8,905 Government securities 2,951 40 - 2,991 Total $ 109,723 $ 60 $ ( 952 ) $ 108,831 |
Member Cash Advances, Net (Tabl
Member Cash Advances, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Receivables [Abstract] | |
Summary of Member Cash Advances, Net | Below is a detail of Member cash advances, net as of March 31, 2023 (in thousands): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 69,224 $ ( 1,912 ) $ 67,312 11-30 10,497 ( 2,583 ) 7,914 31-60 6,535 ( 3,995 ) 2,540 61-90 5,603 ( 4,211 ) 1,392 91-120 5,667 ( 4,664 ) 1,003 Total $ 97,526 $ ( 17,365 ) $ 80,161 Below is a detail of Member cash advances, net as of December 31, 2022 (in thousands): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 91,121 $ ( 2,224 ) $ 88,897 11-30 10,683 ( 2,582 ) 8,101 31-60 9,022 ( 5,529 ) 3,493 61-90 8,865 ( 6,702 ) 2,163 91-120 8,993 ( 7,464 ) 1,529 Total $ 128,684 $ ( 24,501 ) $ 104,183 |
Summary of Allowance for Credit Losses | The roll-forward of the allowance for credit losses is as follows (in thousands): Opening allowance balance at January 1, 2023 $ 24,501 Plus: provision for credit losses 11,953 Less: amounts written-off ( 19,089 ) Ending allowance balance at March 31, 2023 $ 17,365 Opening allowance balance at January 1, 2022 $ 11,995 Plus: provision for credit losses 13,785 Less: amounts written-off ( 9,440 ) Ending allowance balance at March 31, 2022 $ 16,340 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The Company’s intangible assets, net consisted of the following (in thousands): March 31, 2023 December 31, 2022 Weighted Average Useful Lives Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Internally developed software 3.0 Years $ 23,640 $ ( 12,683 ) $ 10,957 $ 21,694 $ ( 11,605 ) $ 10,089 Domain name 15.0 Years 121 ( 49 ) 72 121 ( 47 ) 74 Intangible assets, net $ 23,761 $ ( 12,732 ) $ 11,029 $ 21,815 $ ( 11,652 ) $ 10,163 |
Summary of Estimated Amortization Expenses | The future estimated amortization expenses as of March 31, 2023, were as follows (in thousands): 2023 (remaining) $ 2,646 2024 4,314 2025 2,456 2026 1,571 2027 8 Thereafter 34 Total future amortization $ 11,029 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Summary of Accrued Expenses | The Company’s accrued expenses consisted of the following (dollars in thousands): March 31, 2023 December 31, 2022 Accrued charitable contributions $ 3,558 $ 3,067 Accrued compensation 2,611 1,534 Sales tax payable 1,354 1,357 Accrued professional and program fees 5,424 4,008 Other 665 999 Total $ 13,612 $ 10,965 |
Summary of Other Current Liabilities | The Company’s other current liabilities consisted of the following (dollars in thousands): March 31, 2023 December 31, 2022 Deferred transaction costs $ 3,150 $ 3,150 Other 1,032 1,161 Total $ 4,182 $ 4,311 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Leasing Activities | The Company’s leasing activities are as follows (in thousands): For the Three Months Ended March 31, 2023 March 31, 2022 Operating lease cost $ 82 $ 503 Short-term lease cost - 6 Total lease cost $ 82 $ 509 For the Three Months Ended March 31, 2023 March 31, 2022 Other information: Cash paid for operating leases $ 88 $ 532 Weighted-average remaining lease term - operating lease 2.64 1.96 Weighted-average discount rate - operating lease 10 % 10 % |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments as of March 31, 2023, were as follows (in thousands): Year Related-Party Commitment 2023 (remaining) $ 251 2024 295 2025 310 Thereafter - Total minimum lease payments $ 856 Less: imputed interest ( 102 ) Total lease liabilities $ 754 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Summary of assets and liabilities measured at fair value on a recurring basis | The following are the major categories of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022, using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3) (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 34,423 $ — $ — $ 34,423 Short-term investments — 108,831 — 108,831 Total assets $ 34,423 $ 108,831 $ — $ 143,254 Liabilities Warrant liabilities - public warrants $ 140 $ — $ — $ 140 Warrant liabilities - private warrants - — 176 176 Earnout liabilities - — 28 28 Total liabilities $ 140 $ — $ 204 $ 344 December 31, 2022 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 285 $ — $ — $ 285 Short-term investments — 168,789 — 168,789 Total assets $ 285 $ 168,789 $ — $ 169,074 Liabilities Warrant liabilities - public warrants $ 209 $ — $ — $ 209 Warrant liabilities - private warrants - — 254 254 Earnout liabilities - — 53 53 Total liabilities $ 209 $ — $ 307 $ 516 |
Summary of roll-forward of the Level 3 public warrant liability | A roll-forward of the Level 1 public warrant liability is as follows (dollars in thousands): Opening value at January 1, 2023 $ 209 Change in fair value during the period ( 69 ) Ending value at March 31, 2023 $ 140 |
Summary of roll-forward of the Level 3 private warrant liability | A roll-forward of the Level 3 private warrant liability is as follows (dollars in thousands): Opening value at January 1, 2023 $ 253 Change in fair value during the period ( 77 ) Ending value at March 31, 2023 $ 176 |
Black Scholes Option Pricing Model [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Summary of roll-forward of the Level 3 private warrant liability | The following table presents the assumptions used to value the private warrant liability for the three months ended March 31, 2023: Exercise price $ 368.00 Expected volatility 119.5 % Risk-free interest rate 3.7 % Remaining term 3.76 Dividend yield 0 % |
Earnout Shares Liability [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Summary of roll-forward of the Level 3 derivative asset and liability on loans | A roll-forward of the Level 3 Founder Holder Earnout Shares liability is as follows (dollars in thousands): Opening value at January 1, 2023 $ 53 Change in fair value during the period ( 25 ) Ending value at March 31, 2023 $ 28 |
Summary of fair value of the derivative asset and liability | The following table presents the assumptions used to value the Founder Holder Earnout Shares liability for the three months ended March 31, 2023: Exercise price $ 400 -$ 480 Expected volatility 90.3 % Risk-free interest rate 3.7 % Remaining term 3.77 Dividend yield 0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Assumptions in the Binomial Option-Pricing Model Used to Determine The Fair Value of Stock Options | The following table presents the key inputs and assumptions used to value the RSUs that contain service and market conditions on the grant date: Remaining term 5.0 years Risk-free interest rate 3.5 % Expected volatility 79.7 % |
Summary of Stock Option Activity | Activity with respect to stock options is summarized as follows: Shares Weighted-Average Weighted- Aggregate Options outstanding, January 1, 2023 904,220 $ 21.04 7.3 $ 655 Granted - $ - Exercised ( 994 ) $ 1.01 Forfeited ( 38,414 ) $ 23.05 Expired ( 16,501 ) $ 22.11 Options outstanding, March 31, 2023 848,311 $ 20.95 6.9 $ 387 Nonvested options, March 31, 2023 480,297 $ 23.13 7.9 $ - Vested and exercisable, March 31, 2023 368,014 $ 18.10 5.7 $ 387 |
Chief Executive Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Assumptions in the Binomial Option-Pricing Model Used to Determine The Fair Value of Stock Options | The following table presents the key inputs and assumptions used to value the options granted to the Chief Executive Officer on the grant date: Remaining term 10.0 years Risk-free interest rate 1.5 % Expected dividend yield 0.0 % Expected volatility 40.0 % |
Summary of Restricted Stock Activity | Activity with respect to RSUs is summarized as follows: Shares Weighted-Average Nonvested shares at January 1, 2023 508,506 $ 122.27 Granted 1,441,747 $ 7.07 Vested ( 67,317 ) $ 97.44 Forfeited ( 178,773 ) $ 34.41 Nonvested shares at March 31, 2023 1,704,163 $ 35.00 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Summary of future minimum rental payments | The following is a schedule of future minimum rental payments as of March 31, 2023, under Company’s sub-lease for the properties located in Los Angeles, California signed with PCJW (in thousands): Year Related-Party Commitment 2023 $ 251 2024 295 2025 310 Thereafter - Total minimum lease payments $ 856 Less: imputed interest ( 102 ) Total lease liabilities $ 754 |
Organization and Nature of Bu_2
Organization and Nature of Business - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Bank Charges | $ 34 | |
Bank Overdrafts | 5 | |
Extra cash product for additional liquidity amount | 500 | |
Monthly subscription charges | 1 | |
Daves Advance Service [Member] | ||
Due to Related Parties | $ 500,000 | |
Common stock Class A [Member] | ||
Common stock par value per share | $ 0.0001 | $ 0.0001 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | |||
Jan. 04, 2023 | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Reverse stock split, description | 1-for-32 reverse stock split effective January 5, 2023 | |||
Reverse stock split, conversion ratio | 0.03125 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 1,000,000 | $ 900,000 | ||
Interest expense and penalties | 2,000 | $ 1,000 | ||
FDIC Insured Amount | 51,000,000 | $ 20,700,000 | ||
Loan origination costs | 1,300,000 | 900,000 | ||
Subscription fees Received | $ 1 | |||
Allowance for credit losses average term | 11 days | |||
Capitalized costs for internally developed software | $ 1,900,000 | 2,300,000 | ||
Advertising expense | $ 9,500,000 | 12,200,000 | ||
Effective Income Tax Rate | 50% | |||
ATM-related fees | $ 300,000 | $ 100,000 | ||
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 7 years | |||
Computer Software, Intangible Asset [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Operating Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue Recognition [Line Items] | ||
Revenues | $ 58,928 | $ 42,551 |
Processing fees, net | ||
Revenue Recognition [Line Items] | ||
Revenues | 33,002 | 21,051 |
Tips [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 13,760 | 13,948 |
Subscriptions [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 5,619 | 4,153 |
Other [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 195 | 116 |
Transaction based revenue, net [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | $ 6,352 | $ 3,283 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Earnings Per Share Basic And Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator | ||
Net loss | $ (14,025) | $ (32,795) |
Less: noncumulative dividend to convertible preferred stockholders | 0 | 0 |
Less: undistributed earnings to participating securities | 0 | 0 |
Net loss attributed to common stockholders—basic | (14,025) | (32,795) |
Add: undistributed earnings reallocated to common stockholders | 0 | 0 |
Net loss attributed to common stockholders—diluted | $ (14,025) | $ (32,795) |
Denominator | ||
Weighted-average shares of common stock—basic | 11,815,448 | 11,259,025 |
Dilutive effect of convertible preferred stock | 0 | 0 |
Dilutive effect of equity incentive awards | 0 | 0 |
Weighted-average shares of common stock—diluted | 11,815,448 | 11,259,025 |
Net loss per share: | ||
Basic | $ (1.19) | $ (2.91) |
Diluted | $ (1.19) | $ (2.91) |
Significant Accounting Polici_7
Significant Accounting Policies - Summary Of Computation Of Diluted Net Loss (Income) Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 2,864,974 | 1,216,720 |
Stock options, RSU awards, and PSU awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 2,552,474 | 904,220 |
Convertible debt | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 312,500 | 312,500 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable securities | $ 34,423 | $ 285 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||
Financing receivable weighted average maturity | 45 days | 48 days | |
Marketable securities, gain | $ 100 | $ 70 |
Short-term investments - Summar
Short-term investments - Summary of Short-term Investments (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Debt Securities, Available-for-Sale [Line Items] | |
Cost | $ 109,723 |
Gross Unrealized Losses | (783) |
Fair Value | 108,831 |
Short-Term Investments [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Gross Unrealized Gains | 60 |
Gross Unrealized Losses | (952) |
Corporate Debt Securities [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Cost | 97,887 |
Fair Value | 96,935 |
Corporate Debt Securities [Member] | Short-Term Investments [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Gross Unrealized Losses | (952) |
Asset-Backed Securities [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Cost | 8,885 |
Fair Value | 8,905 |
Asset-Backed Securities [Member] | Short-Term Investments [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Gross Unrealized Gains | 20 |
Government securities [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Cost | 2,951 |
Fair Value | 2,991 |
Government securities [Member] | Short-Term Investments [Member] | |
Debt Securities, Available-for-Sale [Line Items] | |
Gross Unrealized Gains | $ 40 |
Member Cash Advances, Net - Sum
Member Cash Advances, Net - Summary of Member Cash Advances, Net (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | $ 97,526 | $ 128,684 | ||
Allowance for Credit Losses | (17,365) | (24,501) | $ (16,340) | $ (11,995) |
Member Advances, Net | 80,161 | 104,183 | ||
1-10 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 69,224 | 91,121 | ||
Allowance for Credit Losses | (1,912) | (2,224) | ||
Member Advances, Net | 67,312 | 88,897 | ||
11-30 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 10,497 | 10,683 | ||
Allowance for Credit Losses | (2,583) | (2,582) | ||
Member Advances, Net | 7,914 | 8,101 | ||
31-60 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 6,535 | 9,022 | ||
Allowance for Credit Losses | (3,995) | (5,529) | ||
Member Advances, Net | 2,540 | 3,493 | ||
61-90 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 5,603 | 8,865 | ||
Allowance for Credit Losses | (4,211) | (6,702) | ||
Member Advances, Net | 1,392 | 2,163 | ||
91-120 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 5,667 | 8,993 | ||
Allowance for Credit Losses | (4,664) | (7,464) | ||
Member Advances, Net | $ 1,003 | $ 1,529 |
Member Cash Advances, Net - S_2
Member Cash Advances, Net - Summary of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | ||
Beginning balance | $ 24,501 | $ 11,995 |
Plus: provision for credit losses | 11,953 | 13,785 |
Less: amounts written-off | (19,089) | (9,440) |
Ending balance | $ 17,365 | $ 16,340 |
Property and Equipment, net - S
Property and Equipment, net - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 1,249 | $ 1,026 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | $ 23,761 | $ 21,815 |
Accumulated Amortization | (12,732) | (11,652) |
Intangible Assets, net | 11,029 | 10,163 |
Internally developed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | 23,640 | 21,694 |
Accumulated Amortization | (12,683) | (11,605) |
Intangible Assets, net | $ 10,957 | 10,089 |
Weighted Average Useful Lives | 3 years | |
Domain name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | $ 121 | 121 |
Accumulated Amortization | (49) | (47) |
Intangible Assets, net | $ 72 | $ 74 |
Weighted Average Useful Lives | 15 years |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary of Estimated Amortization Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
2023 (remaining) | $ 2,646 | |
2024 | 4,314 | |
2025 | 2,456 | |
2026 | 1,571 | |
2027 | 8 | |
Thereafter | 34 | |
Intangible Assets, net | $ 11,029 | $ 10,163 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Amortization of Intangible Assets | $ 1.1 | $ 1 |
Impairment charges | 0 | 0 |
Intangible Assets, Amortization Period [Member] | ||
Amortization of Intangible Assets | $ 0.2 | $ 0 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued charitable contributions | $ 3,558 | $ 3,067 |
Accrued compensation | 2,611 | 1,534 |
Sales tax payable | 1,354 | 1,357 |
Accrued professional and program fees | 5,424 | 4,008 |
Other | 665 | 999 |
Total | $ 13,612 | $ 10,965 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Deferred transaction costs | $ 3,150 | $ 3,150 | |
Unearned revenue | 700 | ||
Asset Pledged as Collateral [Member] | |||
Debt Instrument, Collateral Fee | $ 2,500 | $ 1,000 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Deferred transaction costs | $ 3,150 | $ 3,150 |
Other | 1,032 | 1,161 |
Total | $ 4,182 | $ 4,311 |
Convertible Note Payable - Addi
Convertible Note Payable - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 21, 2022 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Debt instrument interest rate | 3.01% | |
Conversion price | $ 320 | |
Redemption price percentage | 100% | |
Paid-in-Kind Interest | $ 103.1 | |
Purchase Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument principal amount | $ 100 | |
Debt instrument interest rate | 3% | |
Debt instrument term | 48 months | |
Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Number of consecutive trading days for preceding the delivery | 20 days | |
Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Number of consecutive trading days for preceding the delivery | 30 days | |
FTX Ventures Ltd [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of ownership of common stock | 175% |
Warrant Liabilities - Additiona
Warrant Liabilities - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Nov. 30, 2021 | Mar. 31, 2023 | |
Subsidiary or Equity Method Investee [Line Items] | ||
Fair value of the warrants at the issuance date | $ 0.1 | |
Amended Senior Secured Loan Facility [Member] | Victory Park Management, LLC [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Proceeds from lines of credit | $ 10 | |
Percentage right to acquire a number of common shares on fully diluted equity | 0.20% | |
Proceeds from issuance of equity | $ 40 | |
Percentage of fair market value of each share of common stock | 80% | |
Fair market value of each share of common stock per share | $ 120.0656 | |
Private Placement Warrants [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of Warrants outstanding | 159,382 | |
Public Warrants [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of Warrants outstanding | 198,251 | |
Warrant Liability Related To Debt Facility [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of warrants or rights excercised during the period units | 1,664,394 | |
Stock issued during the period exercise of warrants | 14,087 | |
After The Completion Of A Business Combination Or Earlier Upon Redemption Or Liquidation [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of warrants or rights term | 5 years | |
Exercise price | $ 368 | |
Triggering Share Price One [Member] | Minimum [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Share Price | $ 576 | |
Number of days of notice to be given for the redemption of warrants | 30 days | |
Number of consecutive trading days for determining the share price | 20 days | |
Number of trading days for determining the share price | 30 days | |
Number of days prior to the date of notifying the warrant holders for determining the total trading period | 3 days | |
Triggering Share Price One [Member] | Minimum [Member] | Warrant Redemption Price One [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of warrants or rights redemption price | $ 0.32 | |
Triggering Share Price Two [Member] | Minimum [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Share Price | $ 320 | |
Number of days of notice to be given for the redemption of warrants | 30 days | |
Number of consecutive trading days for determining the share price | 20 days | |
Number of trading days for determining the share price | 30 days | |
Number of days prior to the date of notifying the warrant holders for determining the total trading period | 3 days | |
Triggering Share Price Two [Member] | Minimum [Member] | Warrant Redemption Price Two [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of warrants or rights redemption price | $ 3.20 |
Debt Facility - Additional Info
Debt Facility - Additional Information (Detail) - Victory Park Management, LLC $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2021 USD ($) | Jan. 31, 2021 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Senior Secured Loan Facility | |||||
Line of credit facility, maximum borrowing capacity | $ 100,000 | ||||
Debt instrument maturity month and year | 2025-01 | ||||
Proceeds from sale of productive assets | $ 250 | ||||
Percentage of prepayment of loans from proceeds | 100 | ||||
Proceeds from lines of credit | $ 75,000 | $ 75,000 | |||
Amended Senior Secured Loan Facility | |||||
Proceeds from lines of credit | $ 10,000 | ||||
Line of Credit | Senior Secured Loan Facility | |||||
Debt instrument, description of variable rate basis | 6.95% annually plus a base rate defined as the greater of three-month LIBOR (as of the last business day of each calendar month) and 2.55% | ||||
Debt instrument, basis spread on variable rate description | three-month LIBOR | ||||
Debt instrument, basis spread on variable rate | 2.55% | ||||
Debt instrument covenant amount | $ 8,000 | ||||
Base Rate | Senior Secured Loan Facility | |||||
Line of credit facility, interest rate during period | 6.95% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Jan. 31, 2023 | Dec. 31, 2022 | |
Stoffers v. Dave Inc. [Member] | |||
Commitments And Contingencies [Line Items] | |||
Loss contingency lawsuit filing date | September 16, 2020 | ||
Martinsek v. Dave Inc. [Member] | |||
Commitments And Contingencies [Line Items] | |||
Loss contingency lawsuit filing date | January 9, 2020 | ||
Legal Settlement Expense [Member] | |||
Commitments And Contingencies [Line Items] | |||
Loss contingency estimate of possible loss | $ 3.2 | $ 6 | $ 3.2 |
Leases - Additional information
Leases - Additional information (Detail) - USD ($) $ in Thousands | 1 Months Ended | ||
May 31, 2020 | Jan. 31, 2019 | Nov. 30, 2018 | |
PCJW Properties [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Initial lease term of contract | 7 years | 5 years | |
Current monthly lease payment | $ 20 | $ 6 | |
Annual lease escalation percentage | 5% | 4% | |
Whalerock Industries Holding Company, LLC [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Initial lease term of contract | 12 months | ||
Sublease rental expense | $ 100 |
Leases - Schedule of Leasing Ac
Leases - Schedule of Leasing Activities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 82 | $ 503 |
Short-term lease cost | 0 | 6 |
Total lease cost | 82 | 509 |
Cash paid for operating leases | $ 88 | $ 532 |
Weighted-average remaining lease term - operating lease | 2 years 7 months 20 days | 1 year 11 months 15 days |
Weighted-average discount rate - operating lease | 10% | 10% |
Leases - Schedule Of Future Min
Leases - Schedule Of Future Minimum Rental Payments For Operating Leases (Detail) - Related-Party Commitment [Member] $ in Thousands | Mar. 31, 2023 USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2023 (remaining) | $ 251 |
2024 | 295 |
2025 | 310 |
Total minimum lease payments | 856 |
Less: imputed interest | (102) |
Total lease liabilities | $ 754 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary Of Assets And Liabilities Measured At Fair Value On A Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Marketable securities | $ 34,423 | $ 285 |
Short-term investments | 108,831 | 168,789 |
Total assets | 143,254 | 169,074 |
Liabilities | ||
Earnout liabilities | 28 | 53 |
Total liabilities | 344 | 516 |
Public Warrants [Member] | ||
Liabilities | ||
Warrant Liability | 140 | 209 |
Private Placement Warrants [Member] | ||
Liabilities | ||
Warrant Liability | 176 | 254 |
Level 1 | ||
Assets | ||
Marketable securities | 34,423 | 285 |
Total assets | 34,423 | 285 |
Liabilities | ||
Total liabilities | 140 | 209 |
Level 1 | Public Warrants [Member] | ||
Liabilities | ||
Warrant Liability | 140 | 209 |
Level 2 | ||
Assets | ||
Short-term investments | 108,831 | 168,789 |
Total assets | 108,831 | 168,789 |
Level 3 | ||
Liabilities | ||
Earnout liabilities | 28 | 53 |
Total liabilities | 204 | 307 |
Level 3 | Private Placement Warrants [Member] | ||
Liabilities | ||
Warrant Liability | $ 176 | $ 254 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Jan. 05, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of public and private warrant liabilities | $ (146,000) | $ 4,065,000 | ||
Gain on change in fair value of earnout shares | 30,000 | |||
Class A common stock [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Shares subject to forfeiture | 49,563 | |||
Period over which vesting conditions shall be met | 5 years | |||
Public Warrants [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of public and private warrant liabilities | 70,000 | |||
Private Placement Warrants [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Changes in fair value of public and private warrant liabilities | 80,000 | |||
Fair Value, Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Net Asset (Liability) | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Roll-Forward of the Level 3 Public Warrant Liability (Detail) (Details) - Public Placement Warrants [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening value | $ 209 |
Change in fair value during the period | (69) |
Ending value | $ 140 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Summary of Roll-Forward of the Level 3 Private Warrant Liability (Detail) - Private Placement Warrants [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening value | $ 253 |
Change in fair value during the period | (77) |
Ending value | $ 176 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Unobservable Inputs in Measurement of Private Warrants (Detail) | Mar. 31, 2023 yr |
Exercise price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 368 |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 119.5 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 3.7 |
Remaining term | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 3.76 |
Dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 0 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Schedule of Level 3 Earnout Shares liability (Detail) - Founder Holder Earnout Shares Liability [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening value | $ 53 |
Change in fair value during the period | (25) |
Ending value | $ 28 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Schedule of Earnout Shares liability (Detail) - Founder Holder Earnout Shares Liability [Member] | Mar. 31, 2023 yr |
Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 400 |
Exercise price | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 480 |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 90.3 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 3.7 |
Remaining term | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 3.77 |
Dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2023 shares | Dec. 31, 2022 shares | |
Class of Stock [Line Items] | ||
Preferred stock shares outstanding | 0 | 0 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 10,402,531 | 10,334,220 |
Common Stock, Shares, Outstanding | 10,352,968 | 10,284,657 |
Voting right description | Class A Common Stock have one vote per share | |
Common stock, conversion basis | Shares of Class V Common Stock are convertible into shares of Class A Common Stock on a one-to-one basis at the option of the holders of Class V Common Stock at any time upon written notice to the Company. | |
Class V common stock conversion ratio | 1 | |
Common Class V [Member] | ||
Class of Stock [Line Items] | ||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares, Issued | 1,514,082 | 1,514,082 |
Common Stock, Shares, Outstanding | 1,514,082 | 1,514,082 |
Voting right description | Class V Common Stock have 10 votes per share |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Beginning Options outstanding | 904,220 | ||
Granted | 0 | 0 | |
Exercised | (994) | ||
Forfeited | (38,414) | ||
Expired | (16,501) | ||
Ending Options outstanding | 848,311 | 904,220 | |
Nonvested options, Shares | 480,297 | ||
Vested and exercisable, Shares | 368,014 | ||
Beginning Weighted- Average Exercise Price Options outstanding | $ 21.04 | ||
Weighted- Average Exercise Price Exercised | 1.01 | ||
Weighted- Average Exercise Price Forfeited | 23.05 | ||
Weighted- Average Exercise Price Expired | 22.11 | ||
Ending Weighted- Average Exercise Price Options outstanding | 20.95 | $ 21.04 | |
Nonvested options, Weighted- Average Exercise Price | 23.13 | ||
Vested and exercisable, Weighted- Average Exercise Price | $ 18.10 | ||
Weighted- Average Remaining Contractual Term (years) | 6 years 10 months 24 days | 7 years 3 months 18 days | |
Nonvested options, Weighted- Average Remaining Contractual Term (years) | 7 years 10 months 24 days | ||
Vested and exercisable, Weighted- Average Remaining Contractual Term (years) | 5 years 8 months 12 days | ||
Aggregate Intrinsic Value | $ 387 | $ 655 | |
Vested and exercisable, Aggregate Intrinsic Value | $ 387 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Assumptions in the Binomial Option-Pricing Model Used to Determine The Fair Value of Stock Options (Detail) | 3 Months Ended |
Mar. 31, 2023 | |
Chief Executive Officer [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining term | 10 years |
Risk-free interest rate | 1.50% |
Expected dividend yield | 0% |
Expected volatility | 40% |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Remaining term | 5 years |
Risk-free interest rate | 3.50% |
Expected volatility | 79.70% |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance, Shares | shares | 508,506 |
Granted, Shares | shares | 1,441,747 |
Vested, Shares | shares | (67,317) |
Forfeited, Shares | shares | (178,773) |
Ending Balance, Shares | shares | 1,704,163 |
Beginning Balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 122.27 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 7.07 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 97.44 |
Forfeited, Weighted Average Grant-Date Fair Value | $ / shares | 34.41 |
Ending Balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 35 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional information (Detail) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 USD ($) Tranche $ / shares shares | Mar. 31, 2022 USD ($) $ / shares shares | |
Share-based payment arrangement, expense | $ 6.8 | $ 3.2 |
Stock options granted during period | shares | 0 | 0 |
Option Strike Price | $ / shares | $ 23.18 | |
Share based compensation by share award non vested options subject to forfeiture | shares | 2,777 | 13,887 |
Share based compensation by share based award non vested options subject to forfeiture weighted average exercise price | $ / shares | $ 22.09 | $ 22.09 |
Chief Executive Officer [Member] | ||
Share-based payment arrangement, expense | $ 1.9 | |
Granted, Shares | shares | 358,001 | |
Fair value of the options on the grant date | $ 10.5 | |
Chief Executive Officer [Member] | Minimum [Member] | ||
Derived service periods | 3 years | |
Chief Executive Officer [Member] | Maximum [Member] | ||
Derived service periods | 7 years | |
Employee Stock Option [Member] | Chief Executive Officer [Member] | ||
Share based payment arrangement number of tranches | Tranche | 9 | |
Restricted Stock [Member] | ||
Granted, Shares | shares | 1,441,747 | |
Restricted Stock Units (RSUs) [Member] | ||
Share based payment arrangement number of tranches | Tranche | 6 | |
Granted, Shares | shares | 629,454 | |
Fair value of the options on the grant date | $ 3 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 56.9 | |
Unrecognized stock-based compensation cost period for recognition | 2 years 8 months 12 days | |
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||
Derived service periods | 3 years | |
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||
Derived service periods | 2 years | |
Stock Compensation Plan [Member] | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 10.3 | |
Unrecognized stock-based compensation cost period for recognition | 3 years 7 months 6 days | |
Stock Compensation Plan [Member] | Dave Two Thousand and Seventeen Plan [Member] | ||
Expiration period | 10 years | |
Vesting period | 4 years |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
PCJW Properties LLC [Member] | Leasing Arrangements [Member] | ||
Related Party Transaction [Line Items] | ||
Operating lease expense | $ 90 | $ 80 |
Related-Party Transactions - Su
Related-Party Transactions - Summary of Future Minimum Rental Payments (Detail) - PCJW Properties LLC [Member] $ in Thousands | Mar. 31, 2023 USD ($) |
Related Party Lessee Operating Lease Liability Maturity [Line Items] | |
2023 | $ 251 |
2024 | 295 |
2025 | 310 |
Total minimum lease payments | 856 |
Less: imputed interest | (102) |
Total lease liabilities | $ 754 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Detail) - 401(k) Savings Plan [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 01, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, maximum annual contributions per employee, percent | 100% | 90% | |
Defined contribution plan, employer matching contribution percent | 4% | ||
Defined contribution plan, employer contribution | $ 0.5 | $ 0.4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | 1 Months Ended | ||
Apr. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||
Stock options granted and unexercised | 848,311 | 904,220 | |
Subsequent Events [Member] | Stock Option Repricing [Member] | |||
Subsequent Event [Line Items] | |||
Stock options granted and unexercised | 337,053 | ||
Stock options, exercise price minimum | $ 22.09 | ||
Stock options, exercise price maximum | $ 23.18 |