Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 26, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
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 | Non-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 $0.0001 | |
Trading Symbol | DAVE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 11,155,158 | |
Class V common stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,514,082 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 48,600 | $ 41,759 |
Marketable securities | 95 | 952 |
Member advances, net of allowance for credit losses | 127,759 | 112,846 |
Investments | 39,508 | 113,226 |
Prepaid income taxes | 0 | 148 |
Prepaid expenses and other current assets | 13,550 | 7,955 |
Total current assets | 229,512 | 276,886 |
Property and equipment, net | 911 | 1,118 |
Lease right-of-use assets (related-party of $646 and $773 as of June 30, 2024 and December 31, 2023, respectively) | 646 | 773 |
Intangible assets, net | 13,895 | 13,206 |
Debt facility commitment fee, long-term | 243 | 318 |
Restricted cash | 1,546 | 1,319 |
Other non-current assets | 411 | 403 |
Total assets | 247,164 | 294,023 |
Current liabilities: | ||
Accounts payable | 9,318 | 5,485 |
Accrued expenses | 11,226 | 12,626 |
Lease liabilities, short-term (related-party of $323 and $298 as of June 30, 2024 and December 31, 2023, respectively) | 323 | 298 |
Legal settlement accrual | 1,220 | 3,330 |
Other current liabilities | 4,375 | 3,865 |
Total current liabilities | 26,462 | 25,604 |
Lease liabilities, long-term (related-party of $380 and $543 as of June 30, 2024 and December 31, 2023, respectively) | 380 | 543 |
Debt facility, long-term | 75,000 | 75,000 |
Convertible debt, long-term | 0 | 105,451 |
Warrant and earnout liabilities | 572 | 233 |
Other non-current liabilities | 2,993 | 129 |
Total liabilities | 105,407 | 206,960 |
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 June 30, 2024 and December 31, 2023 | ||
Additional paid-in capital | 311,400 | 296,733 |
Accumulated other comprehensive gain | 75 | 649 |
Accumulated deficit | (169,719) | (210,320) |
Total stockholders' equity | 141,757 | 87,063 |
Total liabilities, and stockholders' equity | 247,164 | 294,023 |
Dave OD Funding I, LLC | ||
Current assets: | ||
Cash and cash equivalents | 42,056 | 37,684 |
Member advances, net of allowance for credit losses | 114,716 | 95,812 |
Investments | 18,695 | 21,264 |
Debt facility commitment fee, current | 146 | 139 |
Debt facility commitment fee, long-term | 243 | 318 |
Total assets | 175,856 | 155,217 |
Current liabilities: | ||
Accounts payable | 638 | 661 |
Debt facility, long-term | 75,000 | 75,000 |
Total liabilities | 75,638 | 75,661 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
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 | $ 20,493 | $ 20,310 |
Related party lease right of use assets | 646 | 773 |
Related Party Short term lease liabilities | 323 | 298 |
Related Party long term lease liabilities | $ 380 | $ 543 |
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 | 11,149,290 | 10,683,736 |
Common Stock, Shares, Outstanding | 11,099,727 | 10,634,173 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Operating revenues: | ||||
Revenues | $ 80,117 | $ 61,235 | $ 153,747 | $ 120,163 |
Operating expenses: | ||||
Provision for credit losses | 14,365 | 15,925 | 24,308 | 27,878 |
Processing and servicing costs | 7,794 | 7,232 | 15,517 | 14,350 |
Advertising and marketing | 10,743 | 14,985 | 19,840 | 24,456 |
Compensation and benefits | 24,515 | 23,932 | 49,067 | 48,299 |
Other operating expenses | 17,031 | 20,078 | 33,947 | 38,579 |
Total operating expenses | 74,448 | 82,152 | 142,679 | 153,562 |
Other (income) expenses: | ||||
Interest income | (537) | (1,485) | (2,032) | (2,677) |
Interest expense | 1,965 | 3,027 | 4,182 | 5,925 |
Gain on extinguishment of convertible debt | 0 | 0 | (33,442) | 0 |
Changes in fair value of earnout liabilities | (63) | (12) | 133 | (37) |
Changes in fair value of public and private warrant liabilities | (272) | 164 | 205 | 18 |
Total other (income) expense, net | 1,093 | 1,694 | (30,954) | 3,229 |
Net income (loss) before provision for income taxes | 4,576 | (22,611) | 42,022 | (36,628) |
Provision (benefit) for income taxes | (1,782) | 7 | 1,421 | 15 |
Net income (loss) | $ 6,358 | $ (22,618) | $ 40,601 | $ (36,643) |
Net income (loss) per share: | ||||
Basic | $ 0.51 | $ (1.9) | $ 3.3 | $ (3.09) |
Diluted | $ 0.47 | $ (1.9) | $ 3.02 | $ (3.09) |
Weighted-average shares used to compute net income (loss) per share | ||||
Basic | 12,416,524 | 11,884,473 | 12,318,365 | 11,850,151 |
Diluted | 13,543,648 | 11,884,473 | 13,433,461 | 11,850,151 |
Service based revenue, net [Member] | ||||
Operating revenues: | ||||
Revenues | $ 71,651 | $ 54,985 | $ 137,213 | $ 107,561 |
Transaction based revenue, net [Member] | ||||
Operating revenues: | ||||
Revenues | $ 8,466 | $ 6,250 | $ 16,534 | $ 12,602 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Net Income (Loss) | $ 6,358 | $ (22,618) | $ 40,601 | $ (36,643) |
Unrealized (loss) gain on available-for-sale securities | 73 | 23 | (574) | 806 |
Comprehensive income (loss) | $ 6,431 | $ (22,595) | $ 40,027 | $ (35,837) |
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] | Accumulated other comprehensive income (loss) [Member] | Accumulated Deficit [Member] |
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) | 2 | 2 | ||||
Issuance of Class A common stock in connection with stock plans (Shares) | 136,494 | |||||
Payment for fractional shares after reverse stock split | (13) | (13) | ||||
Stock-based compensation | 13,406 | 13,406 | ||||
Unrealized (loss) gain on available-for-sale securities | 806 | 806 | ||||
Net Income (Loss) | (36,643) | (36,643) | ||||
Ending balance at Jun. 30, 2023 | 84,118 | $ 1 | 283,432 | (869) | (198,446) | |
Ending balance, Shares at Jun. 30, 2023 | 10,421,151 | 1,514,082 | ||||
Beginning balance at Mar. 31, 2023 | 100,080 | $ 1 | 276,799 | (892) | (175,828) | |
Beginning balance, Shares at Mar. 31, 2023 | 10,352,968 | 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) | 68,183 | |||||
Stock-based compensation | 6,632 | 6,632 | ||||
Unrealized (loss) gain on available-for-sale securities | 23 | 23 | ||||
Net Income (Loss) | (22,618) | (22,618) | ||||
Ending balance at Jun. 30, 2023 | 84,118 | $ 1 | 283,432 | (869) | (198,446) | |
Ending balance, Shares at Jun. 30, 2023 | 10,421,151 | 1,514,082 | ||||
Beginning balance at Dec. 31, 2023 | 87,063 | $ 1 | 296,733 | 649 | (210,320) | |
Beginning balance, Shares at Dec. 31, 2023 | 10,634,173 | 1,514,082 | ||||
Issuance of Class A common stock in connection with stock plans (Value) | 831 | 831 | ||||
Issuance of Class A common stock in connection with stock plans (Shares) | 465,554 | |||||
Stock-based compensation | 13,836 | 13,836 | ||||
Unrealized (loss) gain on available-for-sale securities | (574) | (574) | ||||
Net Income (Loss) | 40,601 | 40,601 | ||||
Ending balance at Jun. 30, 2024 | 141,757 | $ 1 | 311,400 | 75 | (169,719) | |
Ending balance, Shares at Jun. 30, 2024 | 11,099,727 | 1,514,082 | ||||
Beginning balance at Mar. 31, 2024 | 127,314 | $ 1 | 303,387 | 3 | (176,077) | |
Beginning balance, Shares at Mar. 31, 2024 | 10,819,723 | 1,514,082 | ||||
Issuance of Class A common stock in connection with stock plans (Value) | 307 | 307 | ||||
Issuance of Class A common stock in connection with stock plans (Shares) | 280,004 | |||||
Stock-based compensation | 7,706 | 7,706 | ||||
Unrealized (loss) gain on available-for-sale securities | 72 | 72 | ||||
Net Income (Loss) | 6,358 | 6,358 | ||||
Ending balance at Jun. 30, 2024 | $ 141,757 | $ 1 | $ 311,400 | $ 75 | $ (169,719) | |
Ending balance, Shares at Jun. 30, 2024 | 11,099,727 | 1,514,082 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating activities | ||
Net Income (Loss) | $ 40,601 | $ (36,643) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 3,500 | 2,422 |
Provision for credit losses | 24,308 | 27,878 |
Changes in fair value of earnout liabilities | 133 | (37) |
Changes in fair value of public and private warrant liabilities | 205 | 18 |
Gain on extinguishment of convertible debt | (33,442) | 0 |
Stock-based compensation | 13,836 | 13,406 |
Non-cash interest | 251 | 1,532 |
Non-cash lease expense | (11) | (11) |
Changes in fair value of marketable securities and short-term investments | (173) | 146 |
Changes in operating assets and liabilities: | ||
Member advances, service based revenue | (568) | 676 |
Prepaid income taxes | 148 | 10 |
Prepaid expenses and other current assets | (5,587) | (2,353) |
Accounts payable | 3,833 | (5,160) |
Accrued expenses | (1,899) | 2,951 |
Legal settlement accrual | (2,110) | (1,849) |
Other current liabilities | 510 | (373) |
Other non-current liabilities | 2,864 | 2 |
Other non-current assets | (8) | 137 |
Net cash provided by operating activities | 46,391 | 2,752 |
Investing activities | ||
Payments for internally developed software costs | (3,767) | (4,068) |
Purchase of property and equipment | (147) | (594) |
Net disbursements and collections of Member advances | (38,653) | (13,025) |
Purchase of investments | (48,524) | (54,422) |
Sale and maturity of investments | 121,841 | 98,747 |
Purchase of marketable securities | (59,177) | (34,345) |
Sale of marketable securities | 60,034 | 31,423 |
Net cash provided by investing activities | 31,607 | 23,716 |
Financing activities | ||
Payment for fractional shares on reverse stock split | 0 | (13) |
Proceeds from issuance of common stock for stock option exercises | 831 | 2 |
Payment of costs for extinguishment of convertible debt | (761) | 0 |
Repayment of borrowings on convertible debt, long-term | (71,000) | 0 |
Net cash used in financing activities | (70,930) | (11) |
Net increase in cash and cash equivalents and restricted cash | 7,068 | 26,457 |
Cash and cash equivalents and restricted cash, beginning of the period | 43,078 | 23,677 |
Cash and cash equivalents and restricted cash, end of the period | 50,146 | 50,134 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property and equipment purchases in accounts payable and accrued liabilities | 0 | 11 |
Supplemental disclosure of cash paid for: | ||
Income taxes | 96 | 4 |
Interest | 3,885 | 3,608 |
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 | 48,600 | 49,346 |
Restricted cash | 1,546 | 788 |
Total cash, cash equivalents, and restricted cash, end of the period | $ 50,146 | $ 50,134 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 6,358 | $ (22,618) | $ 40,601 | $ (36,643) |
Organization and Nature of Busi
Organization and Nature of Business | 6 Months Ended |
Jun. 30, 2024 | |
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 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 products, 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 $ 35 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, offered through our partnership with Evolve Bank & Trust, a federal reserve member bank and member of the FDIC ("Evolve"), which allows Members to receive a cash advance of up to $ 500 with an option to advance funds to their bank account via the automated clearing house (ACH) network (which typically takes two to five business days) and avoid fees altogether. Members also have the option to advance funds to their bank account via the debit card network (which typically takes minutes or hours) for an instant transfer fee. Dave Banking: Dave offers a full-service digital checking account through our partnership with Evolve. Dave Banking accounts do not have overdraft or minimum balance fees, allow for early paycheck payment, offer a Dave debit card to facilitate everyday spending including cashback reward offers, and provide FDIC insurance on checking account balances up to $ 250,000 . Moreover, Dave Banking Members receive features to support their financial health such as 4.00 % annual percentage yield ("APY") deposit rates on both checking and savings account balances, Goals savings accounts and opt-in round-up savings on debit transactions in addition to receiving lower ExtraCash instant transfer fees. Budget: Leveraging our data connections to Members' bank accounts and spending activity, Dave offers a personal financial management tool to support Members with budgeting, wherever someone banks. With Budget, Dave helps Members to manage their income and expenses between paychecks and avoid liquidity jams that may cause them to overdraft. Dave tracks Members’ income and expenses, and we let them know about estimated upcoming bills and other expenses. Budget will monitor their linked bank account held at a depository institution, including a Dave Banking account, and will let them know when they are in danger of having insufficient funds in their account. This helps Members avoid overdrafts, returned transactions and bank fees. Side Hustle and Surveys: Dave seeks to help Members improve their financial health by offering them opportunities to generate supplemental income through two channels: Side Hustle and Surveys. Through Side Hustle, our Members can quickly submit applications to leading employers, including Lyft, Instacart, and Walmart that can lead to increased income with flexible employment. Our Surveys product allows for additional earning opportunities, allowing Members to take paid surveys anytime within the Dave mobile application. These channels drive engagement within the Dave ecosystem and deepen our relationship to our Members’ financial wellbeing. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 2 Significant Accounting Policies Basis of Presentation These 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 13, 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 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 consolidated balance sheets. The assets of Dave OD are restricted and may only be used to settle obligations of Dave OD. Use of Estimates The preparation of these 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 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 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) Allowance for credit losses; and (ii) 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 June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Service based revenue, net Processing fees, net $ 49,595 $ 35,985 $ 94,191 $ 68,987 Tips 16,077 13,139 30,987 26,899 Subscriptions 5,850 5,412 11,794 11,031 Other 129 449 241 644 Transaction based revenue, net Interchange revenue, net 4,742 4,093 9,484 8,083 ATM revenue, net 760 577 1,570 1,295 Other 2,964 1,580 5,480 3,224 Total operating revenues, net $ 80,117 $ 61,235 $ 153,747 $ 120,163 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 hours of the advance approval, as opposed to the customary two or three business days. Processing fees are accounted for as non-refundable 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 and six months ended June 30, 2024 were $ 0.8 million and $ 1.5 million, respectively. During the three and six months ended June 30, 2023, the Company recognized direct origination costs as a reduction of advance-related income of $ 0.7 million and $ 2.0 million, respectively. Tips: The Company encourages, but does not contractually require its Members who receive a cash advance to leave a discretionary tip. For accounting purposes, 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. Subscription fees 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 monthly contract period. Price concessions granted to Members who have insufficient funds when subscription fees are due and not collected 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 amounts collected from Members. Other service based revenue consists of lead generation fees from the Company’s Side Hustle advertising partners and revenue share from its survey 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 funding and withdrawal-related transactions, volume support from a certain co-branded agreement, fees earned related to the Rewards Product for Members who make debit card spending transactions at participating merchants 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 value processed through a payment network. ATM fees earned from Member’s usage out-of-network reduced by related ATM transaction costs during the three months and six months ended June 30, 2024, were $ 0.8 million and $ 1.6 million, respectively. ATM fees earned from Member’s usage out-of-network reduced by related ATM transaction costs during the three months and six months ended June 30, 2023, were $ 0.6 million and $ 1.3 million, respectively. ATM-related fees recognized as a reduction of transaction based revenue during the three months and six months ended June 30, 2024 were $ 0.5 million and $ 1.0 million, respectively. ATM-related fees recognized as a reduction of transaction based revenue during the three months and six months ended June 30, 2023 were $ 0.5 million and $ 0.8 million, respectively. Processing and Servicing Costs Processing 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 consolidated statements of operations. Investments 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 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 consolidated statements of comprehensive loss. 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 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 remain 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 consolidated statements of operations. When the Company determines that a Member advance is not collectible, or after 120 days from origination has passed, the uncollectible amount is written-off as a reduction to both the allowance and the gross asset balance. Based on the average outstanding Member advance term of approximately 11 days, advances outstanding 12 or more days from origination may be considered past due. Subsequent recoveries are recorded when received and are recorded as a recovery of the allowance for expected credit losses. Any change in circumstances related to 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 consolidated balance sheets as intangible assets, net. Other costs are expensed as incurred and included within other operating expenses in the consolidated statements of operations. Capitalized costs for the three months and six months ended June 30, 2024, were $ 2.2 million and $ 3.8 million, respectively. Capitalized costs for the three months and six months ended June 30, 2023, were $ 2.1 million and $ 4.1 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 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 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 advances, and accounts receivable. The Company’s cash and cash equivalents and restricted cash in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limits were $ 48.0 million at June 30, 2024 and $ 40.9 million at December 31, 2023, 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 advances balances as of June 30, 2024 and December 31, 2023. Leases ASC 842, Leases (“ASC 842”) requires lessees to recognize most leases on the 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. Subsequent modifications to outstanding awards result in incremental cost if the fair value is increased as a result of the modification. 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 consolidated statements of operations. The Company recognizes forfeitures as they occur. Performance-Based Restricted Stock Unit Awards: Performance-based RSUs are valued on the grant date and the compensation cost is recognized over the requisite service period if and when the Company concludes it is probable that the performance metrics will be satisfied. The grant-date fair value of the awards are not subsequently remeasured, however, the Company reassesses the probability of vesting at each reporting period and records a cumulative adjustment to compensation expense based on the likelihood the performance metric will be achieved. These costs are a component of stock-based compensation expense, presented within compensation and benefits in the consolidated statements of operations. The Company recognizes forfeitures as they occur. Advertising Costs Adverti sing costs are expensed as incurred. Advertising costs for the three months and six months ended June 30, 2024, were $ 10.7 million and $ 19.8 million, respectively, and are presented within advertising an d marketing within the condensed consolidated statements of operations. Advertising costs for the three and six months ended June 30, 2023, were $ 15.0 million and $ 24.5 million, respectively. 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 $ 1.5 million and $ 1.3 million of uncertain tax positions as of June 30, 2024 and December 31, 2023, 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 $ 0.004 million and $ 0.002 million of interest expense and penalties as a component of income tax expense during the six months ended June 30, 2024 and 2023, 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 reportable segment. Net Income (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 June 30, 2024. The rights, including the liquidation and dividend rights, of the holders of the Class A Common Stock and Class V Common Stock are identical, except with respect to voting. Basic net income (loss) attributable to holders of Common Stock per share is calculated by dividing net income (loss) attributable to holders of Common Stock by the weighted-average number of shares outstanding. Diluted net income (loss) per share attributable to holders of common stock is computed by dividing net income (loss) per share attributable to stockholders and the weighted-average number of shares outstanding and the effect of potentially dilutive stock options, warrants, and restricted stock using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to holders of common stock ( in thousands, except share data ): For the Three Months Ended June 30, For the Six Months ended June 30, 2024 2023 2024 2023 Numerator Net income (loss) attributed to common stockholders—basic and diluted $ 6,358 $ ( 22,618 ) $ 40,601 $ ( 36,643 ) Denominator Weighted-average shares of common stock—basic 12,416,524 11,884,473 12,318,365 11,850,151 Dilutive effect of stock options 281,982 - 251,119 - Dilutive effect of RSU 845,142 - 863,977 - Weighted-average shares of common stock—diluted 13,543,648 11,884,473 13,433,461 11,850,151 Net income (loss) per share Basic $ 0.51 $ ( 1.90 ) $ 3.30 $ ( 3.09 ) Diluted $ 0.47 $ ( 1.90 ) $ 3.02 $ ( 3.09 ) The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: For the Three Months Ended June 30, For the Six Mo |
Marketable Securities
Marketable Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Note 3 Marketable Securities Below is a detail of marketable securities ( in thousands ): June 30, 2024 December 31, 2023 Marketable securities $ 95 $ 952 Total $ 95 $ 952 At June 30, 2024 and December 31, 2023, the Company’s marketable securities consisted of investments in a publicly traded money market mutual fund. The underlying money market instruments were primarily comprised of certificates of deposit and financial company asset backed commercial paper. At June 30, 2024, the investment portfolio had a weighted-average maturity o f 12 days. At December 31, 2023, the investment portfolio had a weighted-average maturity of 40 days. The gain recognized in connection with the investment in marketable securities for the three and six months ended June 30, 2024 was $ 0.01 million and $ 0.08 million, respectively, and recorded as a component of interest income in the condensed consolidated statements of operations. The gain recognized in connection with the investment in marketable securities for the three and six months ended June 30, 2023 was $ 0.2 million and $ 0.3 million, respectively, and recorded as a component of interest income in the condensed consolidated statements of operations. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Note 4 Investments Below is a summary of investments, which are measured at fair value as of June 30, 2024 ( in thousands ): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 10,360 $ 1 $ ( 148 ) $ 10,213 Government securities 29,073 230 ( 8 ) 29,295 Total $ 39,433 $ 231 $ ( 156 ) $ 39,508 Below is a summary of investments, which are measured at fair value as of December 31, 2023 ( in thousands ): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 69,087 $ 670 $ ( 345 ) $ 69,412 Asset-backed securities 313 - ( 1 ) 312 Government securities 43,177 338 ( 13 ) 43,502 Total $ 112,577 $ 1,008 $ ( 359 ) $ 113,226 The gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows ( in thousands ): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2024 Corporate bonds $ 5,915 $ ( 62 ) $ 3,978 $ ( 86 ) $ 9,893 $ ( 148 ) Asset-backed securities - - - - - - Government securities 3,810 ( 8 ) - - 3,810 ( 8 ) Total $ 9,725 $ ( 70 ) $ 3,978 $ ( 86 ) $ 13,703 $ ( 156 ) Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss December 31, 2023 Corporate bonds $ 9,271 $ ( 50 ) $ 14,989 $ ( 295 ) $ 24,261 $ ( 345 ) Asset-backed securities - - 274 ( 1 ) 274 ( 1 ) Government securities 3,813 ( 13 ) - - 3,813 ( 13 ) Total $ 13,084 $ ( 63 ) $ 15,263 $ ( 296 ) $ 28,348 $ ( 359 ) The gain recorded in connection with the investments for the three and six months ended June 30, 2024, was $ 0.03 million and $ 0.9 million, respectively, and was recorded as a component of interest income in the condensed consolidated statements of operations. The gain recorded in connection with the investment for the three and six months ended June 30, 2023, was $ 0.2 million and $ 0.3 million, respectively. Accrued interest of $ 0.2 million and $ 1.2 million is included in investments within the condensed consolidated balance sheets for the periods ended June 30, 2024 and 2023, respectively. Unrealized losses on the available-for-sale investment securities as of June 30, 2024 and December 31, 2023 are primarily the result of increases in interest rates as a significant portion of the investments were purchased prior to the Federal reserve commenced interest rate increases in 2022. The Company does not intend to sell nor anticipate that it will be required to sell these investments before recovery of the amortized cost basis. As such, unrealized losses were determined not to be related to credit losses and the Company did not record any credit-related impairment losses on the available-for-sale investment securities during the three and six months ended June 30, 2024 and 2023. As of June 30, 2024, the contractual maturities of available-for-sale investment securities were as follows ( in thousands ): Amortized Cost Fair Value Due in one year or less $ 35,051 $ 35,210 Due after one year through five years $ 4,382 $ 4,298 Total $ 39,433 $ 39,508 |
Member Advances, Net
Member Advances, Net | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Member Advances, Net | Note 5 Member Advances, Net Member advances, net, represent outstanding advances, tips, and processing fees, net of direct origination costs, less an allowance for credit losses. Below is a detail of Member advances, net as of June 30, 2024 ( in thousands ): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 108,921 $ ( 2,452 ) $ 106,469 11-30 20,217 ( 3,980 ) 16,237 31-60 8,309 ( 5,317 ) 2,992 61-90 5,922 ( 4,624 ) 1,298 91-120 4,883 ( 4,120 ) 763 Total $ 148,252 $ ( 20,493 ) $ 127,759 Below is a detail of member advances, net as of December 31, 2023 ( in thousands ): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 98,553 $ ( 2,676 ) $ 95,877 11-30 16,442 ( 4,020 ) 12,422 31-60 7,038 ( 4,576 ) 2,462 61-90 5,719 ( 4,470 ) 1,249 91-120 5,404 ( 4,568 ) 836 Total $ 133,156 $ ( 20,310 ) $ 112,846 The roll-forward of the allowance for credit losses is as follows ( in thousands ): Opening allowance balance at January 1, 2024 $ 20,310 Plus: provision for credit losses 24,308 Plus: amounts recovered 5,778 Less: amounts written-off ( 29,903 ) Ending allowance balance at June 30, 2024 $ 20,493 Opening allowance balance at January 1, 2023 $ 24,501 Plus: provision for credit losses 27,878 Plus: amounts recovered 6,655 Less: amounts written-off ( 39,283 ) Ending allowance balance at June 30, 2023 $ 19,751 The provision for credit losses for the six months ended June 30, 2024 was lower compared to the six months ended June 30, 2023, due primarily to improved collections performance throughout period. The decrease in amounts written-off for the six months ended June 30, 2024 compared to the six months ended June 30, 2023, was also primarily a result of improved collections performance period over period. |
Intangible Assets, Net
Intangible Assets, Net | 6 Months Ended |
Jun. 30, 2024 | |
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 ): June 30, 2024 December 31, 2023 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 $ 25,368 $ ( 11,535 ) $ 13,833 $ 21,601 $ ( 8,461 ) $ 13,140 Domain name 15.0 Years 121 ( 59 ) 62 121 ( 55 ) 66 Intangible assets, net $ 25,489 $ ( 11,594 ) $ 13,895 $ 21,722 $ ( 8,516 ) $ 13,206 The future estimated amortization expenses as of June 30, 2024, were as follows ( in thousands ): 2024 $ 2,912 2025 5,230 2026 3,791 2027 1,928 Thereafter 34 Total future amortization $ 13,895 Amortization expense for the three and six months ended June 30, 2024 was $ 1.6 million and $ 3.1 million, respectively. Amortization expense for the three and six months ended June 30, 2023 was $ 1.1 million and $ 2.2 million, respectively. No impairment charges were recognized related to long-lived assets for the for the three and six months ended June 30, 2024 and 2023. The Company did no t incur any amortization expense related to any changes in useful life of its definite-lived intangible assets for the three and six months ended June 30, 2024. Amortization expense related to the change in useful life of a certain definite-lived intangible asset for the three and six months ended June 30, 2023, was $ 0.1 and $ 0.3 million, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
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 ( in thousands ): June 30, 2024 December 31, 2023 Accrued professional and program fees $ 3,130 $ 4,208 Accrued compensation 2,451 3,605 Income taxes payable 656 - Accrued charitable contributions 1,898 2,212 Accrued negative account balances 1,505 831 Sales tax payable 998 1,442 Other 588 328 Total $ 11,226 $ 12,626 Accrued charitable contributions includes amounts the Company has pledged related to meal donations. The Company uses a portion of tips received to make a charitable cash donation to a third party who uses the funds to provide meals to those in need. For the three and six months ended June 30, 2024, the Company pledged approximately $ 1.0 million and $ 1.9 million related to charitable donations, respectively. For the three and six months ended June 30, 2023, the Company pledged approximately $ 0.7 million and $ 3.2 million related to charitable donations, respectively. These costs are expensed as incurred and are presented within other operating expenses in the condensed consolidated statements of operations. Other Current Liabilities The Company’s other current liabilities consisted of the following ( in thousands ): June 30, 2024 December 31, 2023 Deferred transaction costs $ 3,150 $ 3,150 Other 1,225 715 Total $ 4,375 $ 3,865 Other current liabilities includes $ 3.2 million in deferred transaction costs associated with the transactions consummated on January 5, 2022 as contemplated by that certain Agreement and Plan of Merger, dated as of June 7, 2021 among VPC Impact Acquisition Holdings III, Inc. (“VPCC”), Dave Inc., a Delaware corporation (“Legacy Dave”), and other entities (the “Business Combination”). These transaction costs were also capitalized and included within additional paid-in capital in the condensed consolidated balance sheets. |
Convertible Note Payable
Convertible Note Payable | 6 Months Ended |
Jun. 30, 2024 | |
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 bore 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 would 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. On January 29, 2024, the Company repurchased the $ 105.7 million outstanding balance of the Note as of January 29, 2024 for $ 71.0 million. The Company reduced the net carrying amount of debt by unamortized debt issuance costs of $ 0.03 million at the extinguishment date. The Company also incurred third-party costs totaling $ 1.3 million in conjunction with the settlement of the Note. The third-party costs are included in the reacquisition price and the gain on extinguishment of $ 33.4 million was calculated as the difference between the net carrying amount of debt and the reacquisition price. |
Warrant Liabilities
Warrant Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Warrant Liabilities | Note 9 Warrant Liabilities As of June 30, 2024, there were 6,344,021 public warrants (“Public Warrants”) outstanding and 5,100,214 private placement 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 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 $ 0.01 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 $ 0.10 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 before 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 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 | 6 Months Ended |
Jun. 30, 2024 | |
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”), and allowed the Borrower to draw up to $ 100 million from various lenders (the “Lenders”) associated with Victory Park Management, LLC. The Debt Facility had an interest rate of 6.95 % annually plus a base rate defined as the greater of the three-month London interbank offered rate ("LIBOR") as of the last business day of each calendar month and 2.55 % . Interest is payable monthly in arrears. The Debt Facility contained certain financial covenants, including a requirement to maintain a minimum cash, cash equivalents, or marketable securities balance of $ 8.0 million. On September 13, 2023, the Company executed the Third Amendment to the Debt Facility with the existing Lenders. The Third Amendment, among other things: (i) increases the secured loan facility commitment amount by $ 50 million to a total of $ 150 million; (ii) extends the maturity date of the Debt Facility from January 2025 to December 2026 ; (iii) adds a liquidity trigger threshold, measured as of the last day of any calendar month, equal to the lesser of (a) the trailing six-month EBITDA as of such date, (b) the product of (A) the trailing three-month EBITDA as of such date, multiplied by (B) two (2), and (c) zero ($0); (iv) increases the minimum liquidity threshold, a requirement to maintain a minimum cash, cash equivalents, or marketable securities balance, from $ 8.0 million to $ 15 million; (v) replaces LIBOR with the secured overnight financing rate ("SOFR") and updates interest rates to the base rate (or if greater, SOFR for such date for a 3-month tenor and 3.00 %) plus 5.00 % per annum on that portion of the aggregate outstanding principal balance that is less than or equal to $75 million, plus the base rate plus 4.50 % per annum on that portion of the aggregate outstanding principal balance, if any, that is greater than $75 million; (vi) updates prepayment premiums for early or voluntary principal repayments; and (vii) the Company's guaranty (the limited guaranty was secured by a first-priority lien against substantially all of the Company's assets) of up to $ 25,000,000 of the Borrower's obligations under the Debt Facility has been terminated. Payments of the loan draws are due at the following dates: (i) within five business days after the date of receipt by the Borrower of any net cash proceeds in excess of $ 0.25 million in the aggregate during any fiscal year from any asset sales (other than certain permitted dispositions), Borrower must 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 Borrower, or the Agent as loss payee, of any net cash proceeds from any destruction or taking, the Borrower must 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 Borrower of any net cash proceeds from the incurrence of any indebtedness of Borrower (other than with respect to permitted borrower indebtedness), the Borrower will 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 Borrower in the aggregate amount in any fiscal year in excess of $ 0.25 million or (b) if an event of default has occurred and is continuing at any time when any extraordinary receipts are received by Borrower, then within five business days of the receipt by Borrower of any such extraordinary receipts, the Borrower must prepay the loans or remit such net cash proceeds in an aggregate amount equal to (x) 100 % of such extraordinary receipts in excess of $ 0.25 million in respect of clause (a) above and (y) 100 % of such extraordinary receipts in respect of clause (b) above. As of June 30, 2024 and December 31, 2023, the Company had drawn $ 75.0 million on the Debt Facility and had made no repayments. The Third Amendment was accounted for as a debt modification and, accordingly, the Company capitalized $ 0.4 million of financing costs which will be recognized within the statement of operations evenly through maturity date of the Debt Facility, no gain or loss was recognized. As of June 30, 2024, the Company was in compliance with all covenants. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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. On July 10, 2024, the parties in the Lopez matter reached a settlement agreement in mediation, which is subject to approval by the court. As of June 30, 2024, the Company had recorded a total reserve for legal settlements of $ 1.2 million, offset by an insurance receivable of $ 0.6 million. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Note 12 Leases 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 December 2018, the Company entered into a sublease agreement with PCJW, controlled by Company’s founders (including the Company’s CEO), for general office space next to the aforementioned leased property in Los Angeles, California. The lease term was five years subject to early termination by either party, beginning November 2018 and ending October 2023. In November 2023, the Company extended the sublease for five more years ending October 2028. Under the terms of the sublease, the current monthly rent is $ 0.006 million, subject to an annual escalation of 4 %. 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 Six Months Ended June 30, 2024 June 30, 2023 Operating lease cost $ 173 $ 164 Short-term lease cost - 8 Total lease cost $ 173 $ 172 For the Six Months Ended June 30, 2024 June 30, 2023 Other information: Cash paid for operating leases $ 184 $ 175 Weighted-average remaining lease term - operating lease 2.62 2.43 Weighted-average discount rate - operating lease 10 % 10 % The future minimum lease payments as of June 30, 2024, were as follows ( in thousands ): Year Related-Party Commitment 2024 (remaining) $ 184 2025 385 2026 78 Thereafter 152 Total minimum lease payments $ 799 Less: imputed interest ( 96 ) Total lease liabilities $ 703 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, 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 ): June 30, 2024 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 95 $ — $ — $ 95 Investments — 39,508 — 39,508 Total assets $ 95 $ 39,508 $ — $ 39,603 Liabilities Warrant liabilities - public warrants $ 211 $ — $ — $ 211 Warrant liabilities - private warrants — — 197 197 Earnout liabilities — — 164 164 Total liabilities $ 211 $ — $ 361 $ 572 December 31, 2023 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 952 $ — $ — $ 952 Investments — 113,226 — 113,226 Total assets $ 952 $ 113,226 $ — $ 114,178 Liabilities Warrant liabilities - public warrants $ 97 $ — $ — $ 97 Warrant liabilities - private warrants — — 105 105 Earnout liabilities — — 31 31 Total liabilities $ 97 $ — $ 136 $ 233 The Company had no assets or liabilities measured at fair value on a non-recurring basis as of June 30, 2024 and December 31, 2023. The Company also has financial instruments not measured at fair value. The Company has evaluated cash (Level 1), restricted cash (Level 1), accounts payable (Level 2), accrued expenses (Level 2) and Member advances (Level 3) 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) approximates its carrying value. 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. Investments: The following describes the valuation techniques used by the Company to measure the fair value of investments held as of June 30, 2024 and 2023. 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/(loss) related to the change in fair value of the public warrant liability for the three and six months ended June 30, 2024 , was $ 0.1 mill ion and ($ 0.1 ) million, respectively, which is presented within changes in fair value of public warrant liability in the consolidated statements of operations. A roll-forward of the Level 1 public warrant liability is as follows ( in thousands ): Opening value at January 1, 2024 $ 97 Change in fair value during the period 114 Ending value at June 30, 2024 $ 211 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 Class A 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/(loss) related to the change in fair value of the private warrant liability for the three and six months ended June 30, 2024, was $ 0.1 million and ($ 0.1 ) million, respectively, which is presented within changes in fair value of private warrant liabilities in the consolidated statements of operations. A roll-forward of the Level 3 private warrant liability is as follows ( in thousands ): Opening value at January 1, 2024 $ 105 Change in fair value during the period 92 Ending value at June 30, 2024 $ 197 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 June 30, 2024: Exercise price $ 368 Expected volatility 79.6 % Risk-free interest rate 4.61 % Remaining term 2.51 years 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/ (loss) related to the change in fair value of the Founder Holder Earnout Shares liabilities for the three and six months ended June 30, 2024, was 0.1 million and ($ 0.1 ) million, respectively, which are presented within changes in fair value of earnout liabilities in the consolidated statements of operations. A roll-forward of the Level 3 Founder Holder Earnout Shares liability is as follows ( in thousands ): Opening value at January 1, 2024 $ 31 Change in fair value during the period 133 Ending value at June 30, 2024 $ 164 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 June 30, 2024: Exercise price $ 400 -$ 480 Expected volatility 79.7 % Risk-free interest rate 4.6 % Remaining term 2.52 years 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 June 30, 2024 and December 31, 2023. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Note 14 Stockholders’ Equity Preferred Stock As of June 30, 2024, 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 will 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 June 30, 2024, the Company had 11,149,290 and 1,514,082 shares of Class A Common Stock and Class V Common Stock issued, respectively. As of June 30, 2024, the Company had 11,099,727 and 1,514,082 shares of Class A Common Stock and Class V Common Stock outstanding, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
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. The Company recognized $ 7.7 million and $ 13.8 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 and six months ended June 30, 2024, respectively. The Company recognized $ 6.6 million and $ 13.4 million of stock based compensation expense arising from stock option and restricted stock unit grants for the three and six months ended June 30, 2023, 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. 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, 2024 766,829 $ 14.10 6.3 $ 1,148 Granted - - Exercised ( 124,288 ) $ 6.69 Forfeited ( 5,376 ) $ 6.55 Expired ( 3,600 ) $ 5.18 Options outstanding, June 30, 2024 633,565 $ 15.66 6.3 $ 9,273 Nonvested options, June 30, 2024 378,159 $ 22.27 6.7 $ 3,038 Vested and exercisable, June 30, 2024 255,406 $ 5.89 5.6 $ 6,235 At June 30, 2024, total estimated unrecognized stock-based compensation cost related to unvested stock options prior to that date was $ 4.0 million, which is expected to be recognized over a weighted-average remaining period of 3 years. 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 three years to approximately seven 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 % Stock Option Repricing: In April 2023, the Company’s Board of Directors approved a repricing of certain previously granted and still outstanding vested and unvested stock option awards held by eligible employees, which was approved by stockholders on June 9, 2023. As a result, the exercise price for these awards was lowered to $ 5.18 per share, which was the average per share closing price of the Company’s Class A Common Stock as reported on the Nasdaq Global Stock Market for the 30 trading days ending on and including June 9, 2023. No other terms of the repriced stock options were modified, and the repriced stock options will continue to vest according to their original vesting schedules and will retain their original expiration dates. As a result of the repricing, 134,931 vested and unvested stock options outstanding as of June 9, 2023, with original exercise prices ranging from $ 22.09 to $ 23.18 , were repriced. 0.2 million, of which $ 0.1 million related to vested stock option awards was expensed on the repricing date. The remaining $ 0.1 million related to unvested stock option awards is being amortized on a straight-line basis over the weighted-average vesting period of those awards of approximately 1.3 years as of June 9, 2023. In September 2023, the Company’s Board of Directors approved a repricing of certain previously granted and still outstanding vested and unvested stock option awards held by eight remaining eligible employees excluded from the aforementioned June 9 repricing. As a result, the exercise price for these awards was lowered to $ 7.23 per share, which was the average per share closing price of the Company’s Class A Common Stock as reported on the Nasdaq Global Stock Market for the 30 trading days ending on and including September 13, 2023. No other terms of the repriced stock options were modified, and the repriced stock options will continue to vest according to their original vesting schedules and will retain their original expiration dates. As a result of the repricing, 200,571 vested and unvested stock options outstanding as of September 13, 2023, with original exercise prices ranging from $ 22.09 to $ 23.18 , were repriced. 0.2 million, of which $ 0.17 million related to vested stock option awards was expensed on the repricing date. The remaining $ 0.07 million related to unvested stock option awards is being amortized on a straight-line basis over the weighted-average vesting period of those awards of approximately 1.0 years as of September 13, 2023. Restricted Stock Units: Activity with respect to RSUs is summarized as follows: Shares Weighted-Average Outstanding shares at January 1, 2024 1,726,639 $ 23.10 Granted 461,247 $ 32.15 Vested ( 341,266 ) $ 31.68 Forfeited ( 434,801 ) $ 10.21 Outstanding shares at June 30, 2024 1,411,819 $ 29.69 At June 30, 2024, total estimated unrecognized stock-based compensation cost related to nonvested RSUs was approximately $ 37.6 million, which is expected to be recognized over a weighted-average period of 2.3 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 two years to approximately three 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 % During October 2023, the Company granted 71,844 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 $ 0.2 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 ranges from approximately two years to approximately three years . Each grant will be expensed monthly over the derived service period unless vesting conditions for a particular grant are met, at which point all remaining compensation charges related to that particular grant 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 granted during October 2023 that contain service and market conditions on the grant date: Remaining term 4.2 years Risk-free interest rate 4.9 % Expected volatility 87.6 % During the quarter ended June 30, 2024, the Company's Board of Directors approved a modification to the price targets in the market conditions and the addition of performance conditions for 333,275 unvested RSUs. The modification of the unvested RSUs resulted in incremental stock-based compensation expense of $ 1.0 million, which will be expensed monthly over the derived service period. The weighted average modification-date fair value of the RSUs were $ 5.36 per award. T he Company determined the fair value of the RSUs on the modification date 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 range from approximately one year to approximately two years . The RSUs 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 will be expensed in the period in which the vesting conditions were met. As a result of the modification, the RSUs are now classified as performance-based RSUs and included in the activity table below. The following table presents the key inputs and assumptions used to value the RSUs modified during the quarter ended June 30, 2024: Remaining term 3.7 years Risk-free interest rate 4.7 % Expected volatility 71.7 % Performance-Based Restricted Stock Units: The Company grants performance-based RSUs to certain employees that are subject to the attainment of pre-established internal performance conditions. The actual number of shares subject to the award is determined at the end of the performance period and may range from 0 % to 150 % of the target shares granted depending upon the terms of the award. Activity with respect to Performance-Based RSUs is summarized as follows: Shares Weighted-Average Outstanding shares at January 1, 2024 - $ - Granted 466,316 $ 13.50 Vested - $ - Forfeited ( 3,663 ) $ 5.54 Outstanding shares at June 30, 2024 462,653 $ 13.57 At June 30, 2024, total estimated unrecognized stock-based compensation cost related to nonvested performance-based RSUs was approximately $ 6.0 million, which is expected to be recognized over a weighted-average period of 2.2 years. |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 16 Related-Party Transactions Leasing Arrangements During each of the three and six months ended June 30, 2024, the Company paid $ 0.1 million and $ 0.2 million, respectively, under lease agreements with PCJW, which is controlled by the Company's founders (including the Company's current CEO), for general office space in Los Angeles, California. During the three and six months ended June 30, 2023, the Company paid $ 0.1 million and $ 0.2 million, respectively under the lease agreements with PCJW. The following is a schedule of future minimum rental payments as of June 30, 2024 under Company’s sub-lease for the properties located in Los Angeles, California signed with PCJW ( in thousands ): Year Related-Party Commitment 2024 (remaining) $ 184 2025 385 2026 78 Thereafter 152 Total minimum lease payments $ 799 Less: imputed interest ( 96 ) Total lease liabilities $ 703 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. Debt Facility Brendan Carroll, a Senior Partner at Victory Park Capital Advisors, LLC ("VPC"), joined the board of directors of the Company upon closing of the Business Combination. Interest expense related to the Debt Facility totaled $ 2.0 million and $ 3.9 million for the three and six months ended June 30, 2024, respectively. For more information about the Debt Facility with VPC, refer to Note 10, Debt Facility. Legal Services The law firm of Mitchell Sandler LLC, of which the Company's director Andrea Mitchell is a partner, provided legal services to the Company, which totaled $ 0.1 million and $ 0.4 million for the three and six months ended June 30, 2024, respectively. |
401(k) Savings Plan
401(k) Savings Plan | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 1.0 million for the three and six months ended June 30, 2024, respectively, and $ 0.6 million and $ 1.1 million for the three and six months ended June 30, 2023, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
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. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation | Basis of Presentation These 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 13, 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 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 consolidated balance sheets. The assets of Dave OD are restricted and may only be used to settle obligations of Dave OD. |
Use of Estimates | Use of Estimates The preparation of these 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 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 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) Allowance for credit losses; and (ii) 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 June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Service based revenue, net Processing fees, net $ 49,595 $ 35,985 $ 94,191 $ 68,987 Tips 16,077 13,139 30,987 26,899 Subscriptions 5,850 5,412 11,794 11,031 Other 129 449 241 644 Transaction based revenue, net Interchange revenue, net 4,742 4,093 9,484 8,083 ATM revenue, net 760 577 1,570 1,295 Other 2,964 1,580 5,480 3,224 Total operating revenues, net $ 80,117 $ 61,235 $ 153,747 $ 120,163 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 hours of the advance approval, as opposed to the customary two or three business days. Processing fees are accounted for as non-refundable 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 and six months ended June 30, 2024 were $ 0.8 million and $ 1.5 million, respectively. During the three and six months ended June 30, 2023, the Company recognized direct origination costs as a reduction of advance-related income of $ 0.7 million and $ 2.0 million, respectively. |
Tips | Tips: The Company encourages, but does not contractually require its Members who receive a cash advance to leave a discretionary tip. For accounting purposes, 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. Subscription fees 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 monthly contract period. Price concessions granted to Members who have insufficient funds when subscription fees are due and not collected 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 amounts collected from Members. Other service based revenue consists of lead generation fees from the Company’s Side Hustle advertising partners and revenue share from its survey 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 funding and withdrawal-related transactions, volume support from a certain co-branded agreement, fees earned related to the Rewards Product for Members who make debit card spending transactions at participating merchants 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 value processed through a payment network. ATM fees earned from Member’s usage out-of-network reduced by related ATM transaction costs during the three months and six months ended June 30, 2024, were $ 0.8 million and $ 1.6 million, respectively. ATM fees earned from Member’s usage out-of-network reduced by related ATM transaction costs during the three months and six months ended June 30, 2023, were $ 0.6 million and $ 1.3 million, respectively. ATM-related fees recognized as a reduction of transaction based revenue during the three months and six months ended June 30, 2024 were $ 0.5 million and $ 1.0 million, respectively. ATM-related fees recognized as a reduction of transaction based revenue during the three months and six months ended June 30, 2023 were $ 0.5 million and $ 0.8 million, respectively. |
Processing and Servicing Fees | Processing and Servicing Costs Processing 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 consolidated statements of operations. |
Short-Term Investments | Investments 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 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 consolidated statements of comprehensive loss. 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 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 remain 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 consolidated statements of operations. When the Company determines that a Member advance is not collectible, or after 120 days from origination has passed, the uncollectible amount is written-off as a reduction to both the allowance and the gross asset balance. Based on the average outstanding Member advance term of approximately 11 days, advances outstanding 12 or more days from origination may be considered past due. Subsequent recoveries are recorded when received and are recorded as a recovery of the allowance for expected credit losses. Any change in circumstances related to 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 consolidated balance sheets as intangible assets, net. Other costs are expensed as incurred and included within other operating expenses in the consolidated statements of operations. Capitalized costs for the three months and six months ended June 30, 2024, were $ 2.2 million and $ 3.8 million, respectively. Capitalized costs for the three months and six months ended June 30, 2023, were $ 2.1 million and $ 4.1 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 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 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 advances, and accounts receivable. The Company’s cash and cash equivalents and restricted cash in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limits were $ 48.0 million at June 30, 2024 and $ 40.9 million at December 31, 2023, 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 advances balances as of June 30, 2024 and December 31, 2023. |
Leases | Leases ASC 842, Leases (“ASC 842”) requires lessees to recognize most leases on the 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. Subsequent modifications to outstanding awards result in incremental cost if the fair value is increased as a result of the modification. 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 consolidated statements of operations. The Company recognizes forfeitures as they occur. Performance-Based Restricted Stock Unit Awards: Performance-based RSUs are valued on the grant date and the compensation cost is recognized over the requisite service period if and when the Company concludes it is probable that the performance metrics will be satisfied. The grant-date fair value of the awards are not subsequently remeasured, however, the Company reassesses the probability of vesting at each reporting period and records a cumulative adjustment to compensation expense based on the likelihood the performance metric will be achieved. These costs are a component of stock-based compensation expense, presented within compensation and benefits in the consolidated statements of operations. The Company recognizes forfeitures as they occur. |
Advertising Costs | Advertising Costs Adverti sing costs are expensed as incurred. Advertising costs for the three months and six months ended June 30, 2024, were $ 10.7 million and $ 19.8 million, respectively, and are presented within advertising an d marketing within the condensed consolidated statements of operations. Advertising costs for the three and six months ended June 30, 2023, were $ 15.0 million and $ 24.5 million, respectively. |
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 $ 1.5 million and $ 1.3 million of uncertain tax positions as of June 30, 2024 and December 31, 2023, 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 $ 0.004 million and $ 0.002 million of interest expense and penalties as a component of income tax expense during the six months ended June 30, 2024 and 2023, 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 reportable segment. |
Net Income (Loss) Per Share Attributable to Stockholders | Net Income (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 June 30, 2024. The rights, including the liquidation and dividend rights, of the holders of the Class A Common Stock and Class V Common Stock are identical, except with respect to voting. Basic net income (loss) attributable to holders of Common Stock per share is calculated by dividing net income (loss) attributable to holders of Common Stock by the weighted-average number of shares outstanding. Diluted net income (loss) per share attributable to holders of common stock is computed by dividing net income (loss) per share attributable to stockholders and the weighted-average number of shares outstanding and the effect of potentially dilutive stock options, warrants, and restricted stock using the treasury stock method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to holders of common stock ( in thousands, except share data ): For the Three Months Ended June 30, For the Six Months ended June 30, 2024 2023 2024 2023 Numerator Net income (loss) attributed to common stockholders—basic and diluted $ 6,358 $ ( 22,618 ) $ 40,601 $ ( 36,643 ) Denominator Weighted-average shares of common stock—basic 12,416,524 11,884,473 12,318,365 11,850,151 Dilutive effect of stock options 281,982 - 251,119 - Dilutive effect of RSU 845,142 - 863,977 - Weighted-average shares of common stock—diluted 13,543,648 11,884,473 13,433,461 11,850,151 Net income (loss) per share Basic $ 0.51 $ ( 1.90 ) $ 3.30 $ ( 3.09 ) Diluted $ 0.47 $ ( 1.90 ) $ 3.02 $ ( 3.09 ) The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: For the Three Months Ended June 30, For the Six Months ended June 30, 2024 2023 2024 2023 Equity incentive awards 808,055 2,560,295 852,782 2,560,295 Convertible debt - 312,500 - 312,500 Total 808,055 2,872,795 852,782 2,872,795 The Company also excluded 11,444,235 public and private warrants a nd 49,653 earnout shares that were potentially dilutive from the computation of diluted net income (loss) for the three and six month periods ended June 30, 2024 and 2023, respectively, as including them would have been antidilutive. Refer to Note 9 Warrant Liabilities and Note 13 Fair Value of Financial Instruments for further details. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted: In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures . The amendments require disclosure of incremental segment information on an annual and interim basis. The amendments also require companies with a single reportable segment to provide all disclosures required by this amendment and all existing segment disclosures in Accounting Standards Codification 280, Segment Reporting. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The Company expects the adoption of the standard to result in additional segment footnote disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes - Improvements to Income Tax Disclosures . The amendments require enhanced disclosures in connection with an entity's effective tax rate reconciliation, income taxes paid disaggregated by jurisdiction, and clarification on uncertain tax positions and related financial statement impacts. The amendments are effective for annual periods beginning after December 15, 2024. The Company does not expect the adoption of the amendments to have a significant impact on its financial statements. Recently Adopted Accounting Pronouncements: In June 2016, the FASB issued 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 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, condensed consolidated financial statements, and related disclosures, and has determined that the adoption did not have a significant impact on its condensed consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Summary of operating revenues | Below is detail of operating revenues ( in thousands ): For the Three Months Ended June 30, For the Six Months Ended June 30, 2024 2023 2024 2023 Service based revenue, net Processing fees, net $ 49,595 $ 35,985 $ 94,191 $ 68,987 Tips 16,077 13,139 30,987 26,899 Subscriptions 5,850 5,412 11,794 11,031 Other 129 449 241 644 Transaction based revenue, net Interchange revenue, net 4,742 4,093 9,484 8,083 ATM revenue, net 760 577 1,570 1,295 Other 2,964 1,580 5,480 3,224 Total operating revenues, net $ 80,117 $ 61,235 $ 153,747 $ 120,163 |
Schedule of Earnings Per Share Basic And Diluted | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to holders of common stock ( in thousands, except share data ): For the Three Months Ended June 30, For the Six Months ended June 30, 2024 2023 2024 2023 Numerator Net income (loss) attributed to common stockholders—basic and diluted $ 6,358 $ ( 22,618 ) $ 40,601 $ ( 36,643 ) Denominator Weighted-average shares of common stock—basic 12,416,524 11,884,473 12,318,365 11,850,151 Dilutive effect of stock options 281,982 - 251,119 - Dilutive effect of RSU 845,142 - 863,977 - Weighted-average shares of common stock—diluted 13,543,648 11,884,473 13,433,461 11,850,151 Net income (loss) per share Basic $ 0.51 $ ( 1.90 ) $ 3.30 $ ( 3.09 ) Diluted $ 0.47 $ ( 1.90 ) $ 3.02 $ ( 3.09 ) |
Summary of computation of diluted net income (loss) per share | The following potentially dilutive shares were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been antidilutive: For the Three Months Ended June 30, For the Six Months ended June 30, 2024 2023 2024 2023 Equity incentive awards 808,055 2,560,295 852,782 2,560,295 Convertible debt - 312,500 - 312,500 Total 808,055 2,872,795 852,782 2,872,795 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Marketable Securities | Below is a detail of marketable securities ( in thousands ): June 30, 2024 December 31, 2023 Marketable securities $ 95 $ 952 Total $ 95 $ 952 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments | Below is a summary of investments, which are measured at fair value as of June 30, 2024 ( in thousands ): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 10,360 $ 1 $ ( 148 ) $ 10,213 Government securities 29,073 230 ( 8 ) 29,295 Total $ 39,433 $ 231 $ ( 156 ) $ 39,508 Below is a summary of investments, which are measured at fair value as of December 31, 2023 ( in thousands ): Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate bonds $ 69,087 $ 670 $ ( 345 ) $ 69,412 Asset-backed securities 313 - ( 1 ) 312 Government securities 43,177 338 ( 13 ) 43,502 Total $ 112,577 $ 1,008 $ ( 359 ) $ 113,226 |
Schedule of Gross Unrealized Losses and Fair Values of Available-for-sale Investment Securities that were in Unrealized Loss Positions | The gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows ( in thousands ): Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss June 30, 2024 Corporate bonds $ 5,915 $ ( 62 ) $ 3,978 $ ( 86 ) $ 9,893 $ ( 148 ) Asset-backed securities - - - - - - Government securities 3,810 ( 8 ) - - 3,810 ( 8 ) Total $ 9,725 $ ( 70 ) $ 3,978 $ ( 86 ) $ 13,703 $ ( 156 ) Less Than 12 Months 12 Months or More Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss December 31, 2023 Corporate bonds $ 9,271 $ ( 50 ) $ 14,989 $ ( 295 ) $ 24,261 $ ( 345 ) Asset-backed securities - - 274 ( 1 ) 274 ( 1 ) Government securities 3,813 ( 13 ) - - 3,813 ( 13 ) Total $ 13,084 $ ( 63 ) $ 15,263 $ ( 296 ) $ 28,348 $ ( 359 ) |
Schedule of Contractual Maturities of Available-for-sale Investment Securities | As of June 30, 2024, the contractual maturities of available-for-sale investment securities were as follows ( in thousands ): Amortized Cost Fair Value Due in one year or less $ 35,051 $ 35,210 Due after one year through five years $ 4,382 $ 4,298 Total $ 39,433 $ 39,508 |
Member Advances, Net (Tables)
Member Advances, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Summary of Member Advances, Net | Below is a detail of Member advances, net as of June 30, 2024 ( in thousands ): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 108,921 $ ( 2,452 ) $ 106,469 11-30 20,217 ( 3,980 ) 16,237 31-60 8,309 ( 5,317 ) 2,992 61-90 5,922 ( 4,624 ) 1,298 91-120 4,883 ( 4,120 ) 763 Total $ 148,252 $ ( 20,493 ) $ 127,759 Below is a detail of member advances, net as of December 31, 2023 ( in thousands ): Days From Origination Gross Member Advances Allowance for Credit Losses Member Advances, Net 1-10 $ 98,553 $ ( 2,676 ) $ 95,877 11-30 16,442 ( 4,020 ) 12,422 31-60 7,038 ( 4,576 ) 2,462 61-90 5,719 ( 4,470 ) 1,249 91-120 5,404 ( 4,568 ) 836 Total $ 133,156 $ ( 20,310 ) $ 112,846 |
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, 2024 $ 20,310 Plus: provision for credit losses 24,308 Plus: amounts recovered 5,778 Less: amounts written-off ( 29,903 ) Ending allowance balance at June 30, 2024 $ 20,493 Opening allowance balance at January 1, 2023 $ 24,501 Plus: provision for credit losses 27,878 Plus: amounts recovered 6,655 Less: amounts written-off ( 39,283 ) Ending allowance balance at June 30, 2023 $ 19,751 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | The Company’s intangible assets, net consisted of the following ( in thousands ): June 30, 2024 December 31, 2023 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 $ 25,368 $ ( 11,535 ) $ 13,833 $ 21,601 $ ( 8,461 ) $ 13,140 Domain name 15.0 Years 121 ( 59 ) 62 121 ( 55 ) 66 Intangible assets, net $ 25,489 $ ( 11,594 ) $ 13,895 $ 21,722 $ ( 8,516 ) $ 13,206 |
Summary of Estimated Amortization Expenses | The future estimated amortization expenses as of June 30, 2024, were as follows ( in thousands ): 2024 $ 2,912 2025 5,230 2026 3,791 2027 1,928 Thereafter 34 Total future amortization $ 13,895 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Summary of Accrued Expenses | The Company’s accrued expenses consisted of the following ( in thousands ): June 30, 2024 December 31, 2023 Accrued professional and program fees $ 3,130 $ 4,208 Accrued compensation 2,451 3,605 Income taxes payable 656 - Accrued charitable contributions 1,898 2,212 Accrued negative account balances 1,505 831 Sales tax payable 998 1,442 Other 588 328 Total $ 11,226 $ 12,626 |
Summary of Other Current Liabilities | The Company’s other current liabilities consisted of the following ( in thousands ): June 30, 2024 December 31, 2023 Deferred transaction costs $ 3,150 $ 3,150 Other 1,225 715 Total $ 4,375 $ 3,865 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Leasing Activities | The Company’s leasing activities are as follows ( in thousands ): For the Six Months Ended June 30, 2024 June 30, 2023 Operating lease cost $ 173 $ 164 Short-term lease cost - 8 Total lease cost $ 173 $ 172 For the Six Months Ended June 30, 2024 June 30, 2023 Other information: Cash paid for operating leases $ 184 $ 175 Weighted-average remaining lease term - operating lease 2.62 2.43 Weighted-average discount rate - operating lease 10 % 10 % |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments as of June 30, 2024, were as follows ( in thousands ): Year Related-Party Commitment 2024 (remaining) $ 184 2025 385 2026 78 Thereafter 152 Total minimum lease payments $ 799 Less: imputed interest ( 96 ) Total lease liabilities $ 703 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023, 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 ): June 30, 2024 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 95 $ — $ — $ 95 Investments — 39,508 — 39,508 Total assets $ 95 $ 39,508 $ — $ 39,603 Liabilities Warrant liabilities - public warrants $ 211 $ — $ — $ 211 Warrant liabilities - private warrants — — 197 197 Earnout liabilities — — 164 164 Total liabilities $ 211 $ — $ 361 $ 572 December 31, 2023 Level 1 Level 2 Level 3 Total Assets Marketable securities $ 952 $ — $ — $ 952 Investments — 113,226 — 113,226 Total assets $ 952 $ 113,226 $ — $ 114,178 Liabilities Warrant liabilities - public warrants $ 97 $ — $ — $ 97 Warrant liabilities - private warrants — — 105 105 Earnout liabilities — — 31 31 Total liabilities $ 97 $ — $ 136 $ 233 |
Summary of roll-forward of the Level 1 public warrant liability | A roll-forward of the Level 1 public warrant liability is as follows ( in thousands ): Opening value at January 1, 2024 $ 97 Change in fair value during the period 114 Ending value at June 30, 2024 $ 211 |
Summary of roll-forward of the Level 3 private warrant liability | A roll-forward of the Level 3 private warrant liability is as follows ( in thousands ): Opening value at January 1, 2024 $ 105 Change in fair value during the period 92 Ending value at June 30, 2024 $ 197 |
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 June 30, 2024: Exercise price $ 368 Expected volatility 79.6 % Risk-free interest rate 4.61 % Remaining term 2.51 years 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 ( in thousands ): Opening value at January 1, 2024 $ 31 Change in fair value during the period 133 Ending value at June 30, 2024 $ 164 |
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 June 30, 2024: Exercise price $ 400 -$ 480 Expected volatility 79.7 % Risk-free interest rate 4.6 % Remaining term 2.52 years Dividend yield 0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Option Activity | Activity with respect to stock options is summarized as follows: Shares Weighted-Average Weighted- Aggregate Options outstanding, January 1, 2024 766,829 $ 14.10 6.3 $ 1,148 Granted - - Exercised ( 124,288 ) $ 6.69 Forfeited ( 5,376 ) $ 6.55 Expired ( 3,600 ) $ 5.18 Options outstanding, June 30, 2024 633,565 $ 15.66 6.3 $ 9,273 Nonvested options, June 30, 2024 378,159 $ 22.27 6.7 $ 3,038 Vested and exercisable, June 30, 2024 255,406 $ 5.89 5.6 $ 6,235 |
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 % |
Performance-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Activity | Activity with respect to Performance-Based RSUs is summarized as follows: Shares Weighted-Average Outstanding shares at January 1, 2024 - $ - Granted 466,316 $ 13.50 Vested - $ - Forfeited ( 3,663 ) $ 5.54 Outstanding shares at June 30, 2024 462,653 $ 13.57 |
October 2023 [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 RSUs granted during October 2023 that contain service and market conditions on the grant date: Remaining term 4.2 years Risk-free interest rate 4.9 % Expected volatility 87.6 % |
June 2024 [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 RSUs modified during the quarter ended June 30, 2024: Remaining term 3.7 years Risk-free interest rate 4.7 % Expected volatility 71.7 % |
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 Outstanding shares at January 1, 2024 1,726,639 $ 23.10 Granted 461,247 $ 32.15 Vested ( 341,266 ) $ 31.68 Forfeited ( 434,801 ) $ 10.21 Outstanding shares at June 30, 2024 1,411,819 $ 29.69 |
Related-Party Transactions (Tab
Related-Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Summary of future minimum rental payments | The following is a schedule of future minimum rental payments as of June 30, 2024 under Company’s sub-lease for the properties located in Los Angeles, California signed with PCJW ( in thousands ): Year Related-Party Commitment 2024 (remaining) $ 184 2025 385 2026 78 Thereafter 152 Total minimum lease payments $ 799 Less: imputed interest ( 96 ) Total lease liabilities $ 703 |
Organization and Nature of Bu_2
Organization and Nature of Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Bank Charges | $ 35 |
Bank Overdrafts | 5 |
Dave Banking | |
FDIC insurance on checking account balances | $ 250,000 |
Annual percentage yield deposit rates | 4% |
Daves Advance Service [Member] | |
Due to Related Parties | $ 500,000 |
Daves Advance Service [Member] | Maximum | |
Number of business days | 5 days |
Daves Advance Service [Member] | Minimum | |
Number of business days | 2 days |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 04, 2023 | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2024 USD ($) shares | Jun. 30, 2023 USD ($) shares | Dec. 31, 2023 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 | $ 1,500 | $ 1,500 | $ 1,300 | |||
Interest expense and penalties | 4 | $ 2 | ||||
FDIC Insured Amount | 48,000 | 48,000 | $ 40,900 | |||
Loan origination costs | 800 | $ 700 | $ 1,500 | 2,000 | ||
Allowance for credit losses average term | 11 days | |||||
Capitalized costs for internally developed software | 2,200 | 2,100 | $ 3,800 | 4,100 | ||
Advertising costs | $ 10,700 | $ 15,000 | $ 19,800 | $ 24,500 | ||
Effective Income Tax Rate | 50% | |||||
Accounts Receivable, Noncurrent, Threshold Period Past Due, Writeoff | 120 days | 120 days | ||||
Computation of diluted net income excluded | shares | 808,055 | 2,872,795 | 852,782 | 2,872,795 | ||
Minimum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | ||||
Accounts Receivable, Noncurrent, Threshold Period Past Due | 12 days | |||||
Maximum [Member] | ||||||
Property, Plant and Equipment, Useful Life | 7 years | 7 years | ||||
Public and Private Warrants [Member] | ||||||
Computation of diluted net income excluded | shares | 11,444,235 | 11,444,235 | ||||
Earnout Shares [Member] | ||||||
Computation of diluted net income excluded | shares | 49,653 | 49,653 | ||||
Member's Usage of Out-of-Network [Member] | ||||||
ATM-related fees | $ 800 | $ 600 | $ 1,600 | $ 1,300 | ||
Transaction based revenue, net [Member] | ||||||
ATM-related fees | $ 500 | $ 500 | $ 1,000 | $ 800 | ||
Computer Software, Intangible Asset [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | 3 years |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Operating Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue Recognition [Line Items] | ||||
Revenues | $ 80,117 | $ 61,235 | $ 153,747 | $ 120,163 |
Processing fees, net | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 49,595 | 35,985 | 94,191 | 68,987 |
Tips [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 16,077 | 13,139 | 30,987 | 26,899 |
Subscriptions [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 5,850 | 5,412 | 11,794 | 11,031 |
Other [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 129 | 449 | 241 | 644 |
Transaction based revenue, net [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 8,466 | 6,250 | 16,534 | 12,602 |
Interchange revenue, net [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 4,742 | 4,093 | 9,484 | 8,083 |
ATM revenue, net [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | 760 | 577 | 1,570 | 1,295 |
Transaction based revenue Other, net [Member] | ||||
Revenue Recognition [Line Items] | ||||
Revenues | $ 2,964 | $ 1,580 | $ 5,480 | $ 3,224 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator | ||||
Net income (loss) attributed to common stockholders - basic | $ 6,358 | $ (22,618) | $ 40,601 | $ (36,643) |
Net income (loss) attributed to common stockholders - diluted | $ 6,358 | $ (22,618) | $ 40,601 | $ (36,643) |
Denominator | ||||
Weighted-average shares of common stock—basic | 12,416,524 | 11,884,473 | 12,318,365 | 11,850,151 |
Dilutive effect ofStock option | 281,982 | 0 | 251,119 | 0 |
Dilutive effect of RSU | 845,142 | 0 | 863,977 | 0 |
Weighted-average shares of common stock—diluted | 13,543,648 | 11,884,473 | 13,433,461 | 11,850,151 |
Net income (loss) per share: | ||||
Basic | $ 0.51 | $ (1.9) | $ 3.3 | $ (3.09) |
Diluted | $ 0.47 | $ (1.9) | $ 3.02 | $ (3.09) |
Significant Accounting Polici_7
Significant Accounting Policies - Summary Of Computation Of Diluted Net Income (Loss) Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 808,055 | 2,872,795 | 852,782 | 2,872,795 |
Equity incentive awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 808,055 | 2,560,295 | 852,782 | 2,560,295 |
Convertible debt | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total | 0 | 312,500 | 0 | 312,500 |
Marketable Securities - Summary
Marketable Securities - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Marketable securities | $ 95 | $ 952 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Financing receivable weighted average maturity | 12 days | 40 days | |||
Marketable securities, gain | $ 10 | $ 200 | $ 80 | $ 300 |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||
Cost | $ 39,433 | $ 112,577 |
Gross Unrealized Gains | 231 | 1,008 |
Gross Unrealized Losses | (156) | (359) |
Fair Value | 39,508 | 113,226 |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cost | 10,360 | 69,087 |
Gross Unrealized Gains | 1 | 670 |
Gross Unrealized Losses | (148) | (345) |
Fair Value | 10,213 | 69,412 |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cost | 313 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1) | |
Fair Value | 312 | |
Government securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cost | 29,073 | 43,177 |
Gross Unrealized Gains | 230 | 338 |
Gross Unrealized Losses | (8) | (13) |
Fair Value | $ 29,295 | $ 43,502 |
Investments - Schedule of Gross
Investments - Schedule of Gross Unrealized Losses and Fair Values of Available-for-sale Investment Securities that were in Unrealized Loss Positions (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-Sale [Line Items] | ||
Less Than 12 Months, Fair Value | $ 9,725 | $ 13,084 |
Less Than 12 Months, Unrealized Loss | (70) | (63) |
12 Months or More, Fair Value | 3,978 | 15,263 |
12 Months or More, Unrealized Loss | (86) | (296) |
Total, Fair Value | 13,703 | 28,348 |
Total, Unrealized Loss | (156) | (359) |
Corporate Debt Securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less Than 12 Months, Fair Value | 5,915 | 9,271 |
Less Than 12 Months, Unrealized Loss | (62) | (50) |
12 Months or More, Fair Value | 3,978 | 14,989 |
12 Months or More, Unrealized Loss | (86) | (295) |
Total, Fair Value | 9,893 | 24,261 |
Total, Unrealized Loss | (148) | (345) |
Asset-Backed Securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less Than 12 Months, Fair Value | 0 | 0 |
Less Than 12 Months, Unrealized Loss | 0 | 0 |
12 Months or More, Fair Value | 0 | 274 |
12 Months or More, Unrealized Loss | 0 | (1) |
Total, Fair Value | 0 | 274 |
Total, Unrealized Loss | 0 | (1) |
Government securities [Member] | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Less Than 12 Months, Fair Value | 3,810 | 3,813 |
Less Than 12 Months, Unrealized Loss | (8) | (13) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Loss | 0 | 0 |
Total, Fair Value | 3,810 | 3,813 |
Total, Unrealized Loss | $ (8) | $ (13) |
Investments - Schedule of Contr
Investments - Schedule of Contractual Maturities of Available-for-sale Investment Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Amortized Cost | ||
Due in one year or less | $ 35,051 | |
Due after one year through five years | 4,382 | |
Total | 39,433 | $ 112,577 |
Fair Value | ||
Due in one year or less | 35,210 | |
Due after one year through five years | 4,298 | |
Total | $ 39,508 | $ 113,226 |
Investments - Additional Inform
Investments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Securities, Available-for-Sale [Line Items] | ||||
Gain (loss) in investments | $ 200 | $ 300 | ||
Accrued interest | $ 200 | $ 1,200 | $ 200 | $ 1,200 |
Interest Income [Member] | ||||
Debt Securities, Available-for-Sale [Line Items] | ||||
Gain (loss) in investments | $ 30 | $ 900 |
Member Advances, Net - Summary
Member Advances, Net - Summary of Member Advances, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | $ 148,252 | $ 133,156 | ||
Allowance for Credit Losses | (20,493) | (20,310) | $ (19,751) | $ (24,501) |
Member Advances, Net | 127,759 | 112,846 | ||
1-10 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 108,921 | 98,553 | ||
Allowance for Credit Losses | (2,452) | (2,676) | ||
Member Advances, Net | 106,469 | 95,877 | ||
11-30 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 20,217 | 16,442 | ||
Allowance for Credit Losses | (3,980) | (4,020) | ||
Member Advances, Net | 16,237 | 12,422 | ||
31-60 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 8,309 | 7,038 | ||
Allowance for Credit Losses | (5,317) | (4,576) | ||
Member Advances, Net | 2,992 | 2,462 | ||
61-90 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 5,922 | 5,719 | ||
Allowance for Credit Losses | (4,624) | (4,470) | ||
Member Advances, Net | 1,298 | 1,249 | ||
91-120 [Member] | ||||
Financing Receivable, Past Due [Line Items] | ||||
Gross Member Advances | 4,883 | 5,404 | ||
Allowance for Credit Losses | (4,120) | (4,568) | ||
Member Advances, Net | $ 763 | $ 836 |
Member Advances, Net - Summar_2
Member Advances, Net - Summary of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | ||||
Beginning balance | $ 20,310 | $ 24,501 | ||
Plus: provision for credit losses | $ 14,365 | $ 15,925 | 24,308 | 27,878 |
Plus: amounts recovered | 5,778 | 6,655 | ||
Less: amounts written-off | (29,903) | (39,283) | ||
Ending balance | $ 20,493 | $ 19,751 | $ 20,493 | $ 19,751 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | $ 25,489 | $ 21,722 |
Accumulated Amortization | (11,594) | (8,516) |
Intangible Assets, net | 13,895 | 13,206 |
Internally developed software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | 25,368 | 21,601 |
Accumulated Amortization | (11,535) | (8,461) |
Intangible Assets, net | $ 13,833 | 13,140 |
Weighted Average Useful Lives | 3 years | |
Domain name [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, gross | $ 121 | 121 |
Accumulated Amortization | (59) | (55) |
Intangible Assets, net | $ 62 | $ 66 |
Weighted Average Useful Lives | 15 years |
Intangible Assets, Net - Summ_2
Intangible Assets, Net - Summary of Estimated Amortization Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
2024 | $ 2,912 | |
2025 | 5,230 | |
2026 | 3,791 | |
2027 | 1,928 | |
Thereafter | 34 | |
Intangible Assets, net | $ 13,895 | $ 13,206 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Amortization of Intangible Assets | $ 1.6 | $ 1.1 | $ 3.1 | $ 2.2 |
Impairment charges | 0 | 0 | 0 | 0 |
Intangible Assets, Amortization Period [Member] | ||||
Amortization of Intangible Assets | $ 0 | $ 0.1 | $ 0 | $ 0.3 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued professional and program fees | $ 3,130 | $ 4,208 |
Accrued compensation | 2,451 | 3,605 |
Income taxes payable | 656 | |
Accrued charitable contributions | 1,898 | 2,212 |
Accrued negative account balances | 1,505 | 831 |
Sales tax payable | 998 | 1,442 |
Other | 588 | 328 |
Total | $ 11,226 | $ 12,626 |
Accrued Expenses and Other Cu_4
Accrued Expenses and Other Current Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Deferred transaction costs | $ 3,150 | $ 3,150 | $ 3,150 | ||
Asset Pledged as Collateral [Member] | |||||
Debt Instrument, Collateral Fee | $ 1,000 | $ 700 | $ 1,900 | $ 3,200 |
Accrued Expenses and Other Cu_5
Accrued Expenses and Other Current Liabilities - Summary of Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Deferred transaction costs | $ 3,150 | $ 3,150 |
Other | 1,225 | 715 |
Total | $ 4,375 | $ 3,865 |
Convertible Note Payable - Addi
Convertible Note Payable - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jan. 29, 2024 | Mar. 21, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||||||
Reduction in unamortized debt issuance costs | $ 30 | |||||
Third-party costs | 1,300 | |||||
Gain on debt extinguishment | 33,400 | $ 0 | $ 0 | $ 33,442 | $ 0 | |
Purchase Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument principal amount | $ 100,000 | |||||
Debt instrument interest rate | 3% | |||||
Debt instrument term | 48 months | |||||
Debt instrument repurchase amount | 105,700 | |||||
Debt Instrument repurchase face amount | $ 71,000 |
Warrant Liabilities - Additiona
Warrant Liabilities - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Nov. 30, 2021 | Jun. 30, 2024 | |
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 | 5,100,214 | |
Public Warrants [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Class of Warrants outstanding | 6,344,021 | |
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 | $ 0.01 | |
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 | $ 0.1 |
Debt Facility - Additional Info
Debt Facility - Additional Information (Detail) - Senior Secured Loan Facility | 6 Months Ended | 12 Months Ended | ||
Sep. 13, 2023 USD ($) | Jan. 31, 2021 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Third Amendment | ||||
Debt Instrument [Line Items] | ||||
Debt instruments gurantied by assets | $ 25,000,000 | |||
Victory Park Management, LLC | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | $ 100,000,000 | |||
Debt instrument maturity month and year | 2025-01 | |||
Proceeds from sale of productive assets | $ 250,000 | |||
Percentage of prepayment of loans from proceeds | 100 | |||
Proceeds from lines of credit | $ 75,000,000 | $ 75,000,000 | ||
Victory Park Management, LLC | Third Amendment | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, maximum borrowing capacity | 150,000,000 | |||
Increase in borrwing capacity | $ 50,000,000 | |||
Debt instrument maturity month and year | 2026-12 | |||
Debt modification, financing costs capitalized | 400,000 | |||
Gain or loss of debt instrument modification | $ 0 | |||
Line of Credit | Victory Park Management, LLC | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, description of variable rate basis | 6.95% annually plus a base rate defined as the greater of the three-month London interbank offered rate ("LIBOR") as of the last business day of each calendar month and 2.55% | |||
Debt instrument, basis spread on variable rate description | three-month London interbank offered rate ("LIBOR") | |||
Debt instrument, basis spread on variable rate | 2.55% | |||
Debt instrument covenant amount | $ 8,000,000 | |||
Line of Credit | Victory Park Management, LLC | Third Amendment | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, basis spread on variable rate description | SOFR for such date for a 3-month tenor | |||
Debt instrument, basis spread on variable rate | 3% | |||
Debt instrument covenant amount | $ 15,000,000 | |||
When Aggregate Outstanding Principal Balance Less Than or Equal to $75 Million | Victory Park Management, LLC | Third Amendment | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate addition to variable rate | 5% | |||
When Aggregate Outstanding Principal Balance Greater than $75 Million | Victory Park Management, LLC | Third Amendment | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, interest rate addition to variable rate | 4.50% | |||
Base Rate | Victory Park Management, LLC | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, interest rate during period | 6.95% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Commitments And Contingencies [Line Items] | ||
Reserve for legal settlements | $ 1,220 | $ 3,330 |
Lopez v. Dave Inc. [Member] | ||
Commitments And Contingencies [Line Items] | ||
Reserve for legal settlements | 1,200 | |
Insurance receivable | $ 600 |
Leases - Additional information
Leases - Additional information (Detail) - PCJW Properties LLC [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Jan. 31, 2019 | Dec. 31, 2018 | |
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% |
Leases - Schedule of Leasing Ac
Leases - Schedule of Leasing Activities (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 173 | $ 164 |
Short-term lease cost | 8 | |
Total lease cost | 173 | 172 |
Cash paid for operating leases | $ 184 | $ 175 |
Weighted-average remaining lease term - operating lease | 2 years 7 months 13 days | 2 years 5 months 4 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 | Jun. 30, 2024 USD ($) |
Schedule Of Future Minimum Rental Payments For Operating Leases [Line Items] | |
2024 (remaining) | $ 184 |
2025 | 385 |
2026 | 78 |
Thereafter | 152 |
Total minimum lease payments | 799 |
Less: imputed interest | (96) |
Total lease liabilities | $ 703 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Assets | ||
Marketable securities | $ 95 | $ 952 |
Investments | 39,508 | 113,226 |
Total assets | 39,603 | 114,178 |
Liabilities | ||
Earnout liabilities | 164 | 31 |
Total liabilities | 572 | 233 |
Public Warrants [Member] | ||
Liabilities | ||
Warrant Liability | 211 | 97 |
Private Placement Warrants [Member] | ||
Liabilities | ||
Warrant Liability | 197 | 105 |
Level 1 | ||
Assets | ||
Marketable securities | 95 | 952 |
Total assets | 95 | 952 |
Liabilities | ||
Total liabilities | 211 | 97 |
Level 1 | Public Warrants [Member] | ||
Liabilities | ||
Warrant Liability | 211 | 97 |
Level 2 | ||
Assets | ||
Investments | 39,508 | 113,226 |
Total assets | 39,508 | 113,226 |
Level 3 | ||
Liabilities | ||
Earnout liabilities | 164 | 31 |
Total liabilities | 361 | 136 |
Level 3 | Private Placement Warrants [Member] | ||
Liabilities | ||
Warrant Liability | $ 197 | $ 105 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jan. 05, 2022 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Changes in fair value of public and private warrant liabilities | $ (272,000) | $ 164,000 | $ 205,000 | $ 18,000 | ||
Gain on change in fair value of earnout shares | 100,000 | |||||
Loss on change in fair value of earnout shares | (100,000) | |||||
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 | 100,000 | (100,000) | ||||
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 | 100,000 | (100,000) | ||||
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 - Fair Value of Financial Instruments - Summary of Roll-Forward of the Level 1 Public Warrant Liability (Detail) (Details) - Public Placement Warrants [Member] $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening value | $ 97 |
Change in fair value during the period | 114 |
Ending value | $ 211 |
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 | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening value | $ 105 |
Change in fair value during the period | $ 92 |
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair Value Adjustment of Warrants |
Ending value | $ 197 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Summary of Unobservable Inputs in Measurement of Private Warrants (Detail) | Jun. 30, 2024 |
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 | 79.6 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants and Rights Outstanding, Measurement Input | 4.61 |
Remaining term | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Remaining term | 2 years 6 months 3 days |
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 | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Opening value | $ 31 |
Change in fair value during the period | 133 |
Ending value | $ 164 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Schedule of Earnout Shares liability (Detail) - Founder Holder Earnout Shares Liability [Member] | Jun. 30, 2024 |
Exercise price | Maximum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 480 |
Exercise price | Minimum [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 400 |
Expected volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 79.7 |
Risk-free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 4.6 |
Remaining term | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Remaining term | 2 years 6 months 7 days |
Dividend yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability, Measurement Input | 0 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) | 6 Months Ended | |
Jun. 30, 2024 shares | Dec. 31, 2023 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 | 11,149,290 | 10,683,736 |
Common Stock, Shares, Outstanding | 11,099,727 | 10,634,173 |
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 - Addi
Stock-Based Compensation - Additional information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Sep. 13, 2023 USD ($) $ / shares shares | Jun. 09, 2023 USD ($) $ / shares shares | Oct. 31, 2023 USD ($) Tranche shares | Jun. 30, 2024 USD ($) $ / shares shares | Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) Tranche shares | Jun. 30, 2024 USD ($) Tranche $ / shares shares | Jun. 30, 2023 USD ($) | Dec. 31, 2023 shares | |
Share-based payment arrangement, expense | $ 7,700 | $ 6,600 | $ 13,800 | $ 13,400 | |||||
Option Strike Price | $ / shares | $ 23.18 | ||||||||
Weighted-average vesting period | 6 years 3 months 18 days | 6 years 3 months 18 days | |||||||
Nonvested options, Shares | shares | 378,159 | 378,159 | |||||||
Chief Executive Officer [Member] | |||||||||
Share-based payment arrangement, expense | $ 1,900 | ||||||||
Granted, Shares | shares | 358,001 | ||||||||
Fair value of the options on the grant date | $ 10,500 | ||||||||
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 | Chief Executive Officer [Member] | |||||||||
Share based payment arrangement number of tranches | Tranche | 9 | ||||||||
Restricted Stock [Member] | |||||||||
Granted, Shares | shares | 461,247 | ||||||||
Nonvested options, Shares | shares | 1,411,819 | 1,411,819 | 1,726,639 | ||||||
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 | $ 3,000 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 37,600 | $ 37,600 | |||||||
Unrecognized stock-based compensation cost period for recognition | 2 years 3 months 18 days | ||||||||
Nonvested options, Shares | shares | 333,275 | 333,275 | |||||||
Incremental stock-based compensation expense upon modification of unvested RSUs | $ 1,000 | ||||||||
Weighted average modification-date fair value per award | $ / shares | $ 5.36 | ||||||||
Restricted Stock Units (RSUs) [Member] | October 2023 [Member] | |||||||||
Share based payment arrangement number of tranches | Tranche | 6 | ||||||||
Granted, Shares | shares | 71,844 | ||||||||
Fair value of the options on the grant date | $ 200 | ||||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||||||
Derived service periods | 3 years | ||||||||
Derived service periods determined by valuation | 1 year | ||||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | October 2023 [Member] | |||||||||
Derived service periods | 2 years | ||||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||||
Derived service periods | 2 years | ||||||||
Derived service periods determined by valuation | 2 years | ||||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | October 2023 [Member] | |||||||||
Derived service periods | 3 years | ||||||||
Stock Compensation Plan [Member] | |||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 4,000 | $ 4,000 | |||||||
Unrecognized stock-based compensation cost period for recognition | 3 years | ||||||||
Stock Compensation Plan [Member] | Dave Two Thousand and Seventeen Plan [Member] | |||||||||
Expiration period | 10 years | ||||||||
Vesting period | 4 years | ||||||||
Stock Option Repricing [Member] | |||||||||
Share-based payment arrangement, expense | $ 200 | $ 200 | |||||||
Repricing vested and unvested stock options outstanding | shares | 200,571 | 134,931 | |||||||
Minimum exercise price for repriced options | $ / shares | $ 22.09 | $ 22.09 | |||||||
Maximum exercise price for repriced options | $ / shares | $ 23.18 | $ 23.18 | |||||||
Incremental stock compensation expense for option repricing for vested stock option | $ 170 | $ 100 | |||||||
Incremental stock compensation expense for option repricing for unvested stock options | $ 70 | $ 100 | |||||||
Weighted-average vesting period | 1 year | 1 year 3 months 18 days | |||||||
Stock Option Repricing [Member] | Dave Two Thousand and Seventeen Plan [Member] | |||||||||
Excercise price for repriced options | $ / shares | $ 7.23 | $ 5.18 | |||||||
Performance-Based Restricted Stock Units [Member] | |||||||||
Granted, Shares | shares | 466,316 | ||||||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 6,000 | $ 6,000 | |||||||
Unrecognized stock-based compensation cost period for recognition | 2 years 2 months 12 days | ||||||||
Nonvested options, Shares | shares | 462,653 | 462,653 | |||||||
Performance-Based Restricted Stock Units [Member] | Minimum [Member] | |||||||||
Non-option equity units percentage of target shares granted | 0% | ||||||||
Performance-Based Restricted Stock Units [Member] | Maximum [Member] | |||||||||
Non-option equity units percentage of target shares granted | 150% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Options outstanding | 766,829 | |
Exercised | (124,288) | |
Forfeited | (5,376) | |
Expired | (3,600) | |
Ending Options outstanding | 633,565 | 766,829 |
Nonvested options, Shares | 378,159 | |
Vested and exercisable, Shares | 255,406 | |
Beginning Weighted- Average Exercise Price Options outstanding | $ 14.1 | |
Weighted- Average Exercise Price Exercised | 6.69 | |
Weighted- Average Exercise Price Forfeited | 6.55 | |
Weighted- Average Exercise Price Expired | 5.18 | |
Ending Weighted- Average Exercise Price Options outstanding | 15.66 | $ 14.1 |
Nonvested options, Weighted- Average Exercise Price | 22.27 | |
Vested and exercisable, Weighted- Average Exercise Price | $ 5.89 | |
Weighted- Average Remaining Contractual Term (years) | 6 years 3 months 18 days | 6 years 3 months 18 days |
Nonvested options, Weighted- Average Remaining Contractual Term (years) | 6 years 8 months 12 days | |
Vested and exercisable, Weighted- Average Remaining Contractual Term (years) | 5 years 7 months 6 days | |
Aggregate Intrinsic Value | $ 9,273 | $ 1,148 |
Nonvested options, Aggregate Intrinsic Value | 3,038 | |
Vested and exercisable, Aggregate Intrinsic Value | $ 6,235 |
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) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Oct. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2024 | |
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% | ||
Restricted Stock Units (RSUs) [Member] | October 2023 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining term | 4 years 2 months 12 days | ||
Risk-free interest rate | 4.90% | ||
Expected volatility | 87.60% | ||
Restricted Stock Units (RSUs) [Member] | June 2024 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining term | 3 years 8 months 12 days | ||
Risk-free interest rate | 4.70% | ||
Expected volatility | 71.70% |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning Balance, Shares | shares | 1,726,639 |
Granted, Shares | shares | 461,247 |
Vested, Shares | shares | (341,266) |
Forfeited, Shares | shares | (434,801) |
Ending Balance, Shares | shares | 1,411,819 |
Beginning Balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 23.1 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | 32.15 |
Vested, Weighted Average Grant-Date Fair Value | $ / shares | 31.68 |
Forfeited, Weighted Average Grant-Date Fair Value | $ / shares | 10.21 |
Ending Balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 29.69 |
Performance-Based Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, Shares | shares | 466,316 |
Forfeited, Shares | shares | (3,663) |
Ending Balance, Shares | shares | 462,653 |
Granted, Weighted Average Grant-Date Fair Value | $ / shares | $ 13.5 |
Forfeited, Weighted Average Grant-Date Fair Value | $ / shares | 5.54 |
Ending Balance, Weighted Average Grant-Date Fair Value | $ / shares | $ 13.57 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Mitchell Sandler LLC, | ||||
Related Party Transaction [Line Items] | ||||
Legal service charges | $ 0.1 | $ 0.4 | ||
Closing of Business Combination [Member] | Senior Secured Loan Facility | Victory Park Management, LLC | ||||
Related Party Transaction [Line Items] | ||||
Interest expense | 2 | 3.9 | ||
PCJW Properties LLC [Member] | Leasing Arrangements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Operating lease expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Related-Party Transactions - Su
Related-Party Transactions - Summary of Future Minimum Rental Payments (Detail) - PCJW Properties LLC [Member] $ in Thousands | Jun. 30, 2024 USD ($) |
Related Party Lessee Operating Lease Liability Maturity [Line Items] | |
2024 (remaining) | $ 184 |
2025 | 385 |
2026 | 78 |
Thereafter | 152 |
Total minimum lease payments | 799 |
Less: imputed interest | (96) |
Total lease liabilities | $ 703 |
401(k) Savings Plan - Additiona
401(k) Savings Plan - Additional Information (Detail) - 401(k) Savings Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 01, 2021 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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 | $ 0.6 | $ 1 | $ 1.1 |