2022 Q1 Form 10-Q Financial Statement

#000177947422000022 Filed on May 06, 2022

View on sec.gov

Income Statement

Concept 2022 Q1 2021 Q4 2021 Q1
Revenue $57.45M $54.18M $41.15M
YoY Change 39.6%
Cost Of Revenue $3.740M $2.138M $1.857M
YoY Change 101.4%
Gross Profit $53.71M $52.04M $39.30M
YoY Change 36.68%
Gross Profit Margin 93.49% 96.05% 95.49%
Selling, General & Admin $50.94M $55.49M $22.48M
YoY Change 126.56%
% of Gross Profit 94.83% 106.63% 57.21%
Research & Development $13.09M $7.868M
YoY Change 66.37%
% of Gross Profit 24.37% 20.02%
Depreciation & Amortization $3.945M $1.455M $1.002M
YoY Change 293.71%
% of Gross Profit 7.34% 2.8% 2.55%
Operating Expenses $64.03M $56.95M $737.8K
YoY Change 8578.63% 1782.62% 61.22%
Operating Profit -$14.26M -$4.906M $7.944M
YoY Change -279.51% -1835.95%
Interest Expense
YoY Change
% of Operating Profit
Other Income/Expense, Net -$502.0K $82.51M $28.00K
YoY Change -1892.86% -98.77%
Pretax Income -$32.98M $77.60M $7.972M
YoY Change -513.71% -245.4% 337.51%
Income Tax -$1.700M -$843.0K $200.0K
% Of Pretax Income -1.09% 2.51%
Net Earnings -$13.89M $35.29M $7.731M
YoY Change -279.71% -166.11% 102.97%
Net Earnings / Revenue -24.18% 65.13% 18.79%
Basic Earnings Per Share
Diluted Earnings Per Share -$191.8K $521.9K $0.00
COMMON SHARES
Basic Shares Outstanding
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q1 2021 Q4 2021 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $55.86M $67.78M $100.6K
YoY Change 55418.34% 21574.08% -87.34%
Cash & Equivalents $55.86M $67.78M $19.60M
Short-Term Investments
Other Short-Term Assets $12.03M $13.61M $101.7K
YoY Change 11726.4% 44035.58% -52.89%
Inventory
Prepaid Expenses $101.7K
Receivables $23.66M $17.55M
Other Receivables $0.00 $0.00
Total Short-Term Assets $91.55M $98.93M $202.3K
YoY Change 45143.6% 189.56% -79.98%
LONG-TERM ASSETS
Property, Plant & Equipment $17.34M $13.28M
YoY Change 79.82%
Goodwill $65.72M $45.30M
YoY Change 1043.52%
Intangibles $13.49M $8.299M
YoY Change 84.22%
Long-Term Investments $254.2M
YoY Change 0.08%
Other Assets $10.69M $10.69M
YoY Change 175.86%
Total Long-Term Assets $313.7M $266.2M $254.2M
YoY Change 23.39% 1249.47% 0.08%
TOTAL ASSETS
Total Short-Term Assets $91.55M $98.93M $202.3K
Total Long-Term Assets $313.7M $266.2M $254.2M
Total Assets $405.2M $365.1M $254.4M
YoY Change 59.28% 577.52% -0.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.378M $4.298M $3.550M
YoY Change 79.69% 91.53%
Accrued Expenses $21.65M $24.32M
YoY Change
Deferred Revenue $7.897M $8.057M
YoY Change 53.06%
Short-Term Debt $0.00 $0.00 $200.0K
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $36.93M $37.80M $3.750M
YoY Change 884.79% 62.59% 806.29%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $1.627M $0.00 $150.7M
YoY Change -98.92% -100.0% 1621.71%
Total Long-Term Liabilities $1.627M $0.00 $150.7M
YoY Change -98.92% -100.0% 1621.71%
TOTAL LIABILITIES
Total Short-Term Liabilities $36.93M $37.80M $3.750M
Total Long-Term Liabilities $1.627M $0.00 $150.7M
Total Liabilities $256.2M $233.2M $154.4M
YoY Change 65.96% 847.1% 1584.9%
SHAREHOLDERS EQUITY
Retained Earnings $47.48M $61.37M -$126.0M
YoY Change -137.69% -3981.05%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $91.46M $63.56M $5.000M
YoY Change
Total Liabilities & Shareholders Equity $405.2M $365.1M $254.4M
YoY Change 59.28% 577.52% -0.24%

Cashflow Statement

Concept 2022 Q1 2021 Q4 2021 Q1
OPERATING ACTIVITIES
Net Income -$13.89M $35.29M $7.731M
YoY Change -279.71% -166.11% 102.97%
Depreciation, Depletion And Amortization $3.945M $1.455M $1.002M
YoY Change 293.71%
Cash From Operating Activities -$6.993M -$2.081M $10.59M
YoY Change -166.05% 569.28% -10729.94%
INVESTING ACTIVITIES
Capital Expenditures $4.201M -$3.689M $283.0K
YoY Change 1384.45%
Acquisitions $713.0K $0.00
YoY Change
Other Investing Activities -$713.0K -$3.500M $14.49K
YoY Change -5020.63%
Cash From Investing Activities -$4.914M -$7.189M -$283.0K
YoY Change 1636.4%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $14.49K
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$13.00K -888.0K -$10.62M
YoY Change -99.88%
NET CHANGE
Cash From Operating Activities -$6.993M -2.081M $10.59M
Cash From Investing Activities -$4.914M -7.189M -$283.0K
Cash From Financing Activities -$13.00K -888.0K -$10.62M
Net Change In Cash -$11.92M -10.16M -$315.0K
YoY Change 3684.13% 3166.97% 216.28%
FREE CASH FLOW
Cash From Operating Activities -$6.993M -$2.081M $10.59M
Capital Expenditures $4.201M -$3.689M $283.0K
Free Cash Flow -$11.19M $1.608M $10.30M
YoY Change -208.64%

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CY2022Q1 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
28725000 USD
CY2021Q1 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
0 USD
CY2022Q1 maps Holdback Liability Recognized In Connection With Acquisition
HoldbackLiabilityRecognizedInConnectionWithAcquisition
98000 USD
CY2021Q1 maps Holdback Liability Recognized In Connection With Acquisition
HoldbackLiabilityRecognizedInConnectionWithAcquisition
0 USD
CY2022Q1 maps Business Combination Accrued Liabilities
BusinessCombinationAccruedLiabilities
586000 USD
CY2021Q1 maps Business Combination Accrued Liabilities
BusinessCombinationAccruedLiabilities
0 USD
CY2022Q1 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount
410000 USD
CY2021Q1 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount
0 USD
CY2022Q1 us-gaap Nature Of Operations
NatureOfOperations
Business and Organization<div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">WM Technology, Inc. (the “Company”) is one of the oldest and largest marketplace and technology solutions providers exclusively servicing the cannabis industry, primarily consumers, retailers, delivery services and brands in the United States state-legal and Canadian cannabis markets. The Company’s business primarily consists of its commerce-driven marketplace, Weedmaps, and its monthly subscription software offering, WM Business. The Company’s Weedmaps marketplace provides information on the cannabis plant and the industry and advocates for legalization. The Weedmaps marketplace provides consumers with information regarding cannabis retailers and brands, as well as the strain, pricing, and other information regarding locally available cannabis products, through the Company’s website and mobile apps, permitting product discovery, access to deals and discounts, and reservation of products for pickup by consumers or delivery to consumers by participating retailers. WM Business, the Company’s subscription package, is a comprehensive set of eCommerce and compliance software solutions catered towards cannabis retailers, delivery services and brands where clients receive access to a standard listing page and its suite of software solutions, including WM Orders, WM Dispatch, WM Store, WM Dashboard, integrations and API platform, as well as access to its WM Exchange products, where available. The Company charges a monthly fee to clients for access to its WM Business subscription package and then offers other add-on products for additional fees, including its featured listings and its Sprout (customer relationship management), Cannveya (delivery and logistics software) and Enlighten (software, digital signage services and multi-media offerings) solutions. The Company sells its WM Business offering in the United States, currently offers some of its WM Business solutions in Canada and has a limited number of non-monetized listings in several other countries, including Austria, Germany, the Netherlands, Spain, and Switzerland. The Company operates in the United States, Canada, and other foreign jurisdictions where medical and/or adult cannabis use is legal under state or applicable national law. The Company is headquartered in Irvine, California.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">WM Technology, Inc. was initially incorporated in the Cayman Islands on June 7, 2019 under the name “Silver Spike Acquisition Corp” (“Silver Spike”). Silver Spike was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. On June 16, 2021 (the “Closing Date”), Silver Spike consummated the business combination (the “Business Combination”), pursuant to that certain Agreement and Plan of Merger, dated December 10, 2020 (the “Merger Agreement”), by and among Silver Spike, Silver Spike Merger Sub LLC, a Delaware limited liability company and a wholly owned direct subsidiary of Silver Spike Acquisition Corp. (“Merger Sub”), WM Holding Company, LLC, a Delaware limited liability company (when referred to in its pre-Business Combination capacity, “Legacy WMH” and following the Business Combination, “WMH LLC”), and Ghost Media Group, LLC, a Nevada limited liability company, solely in its capacity as the initial holder representative (the “Holder Representative”). On the Closing Date, and in connection with the closing of the Business Combination (the “Closing”), Silver Spike was domesticated and continues as a Delaware corporation, changing its name to WM Technology, Inc.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company was reorganized into an Up-C structure, in which substantially all of the assets and business of the Company are held by WMH LLC and continue to operate through WMH LLC and its subsidiaries, and WM Technology, Inc.’s material assets are the equity interests of WMH LLC indirectly held by it. Legacy WMH was determined to be the accounting acquirer in the Business Combination, which was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America (“GAAP”).</span></div>
CY2022Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Significant estimates made by management include, among others, the valuation of accounts receivable, the useful lives of long-lived assets, income taxes, website and internal-use software development costs, leases, valuation of goodwill and other intangible assets, valuation of warrant liability, deferred tax asset, tax receivable agreement liability, revenue recognition, stock-based compensation, and the recognition and disclosure of contingent liabilities.</span></div>
CY2022Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
7200000 USD
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
5200000 USD
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
5169000 USD
CY2020Q4 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
914000 USD
CY2022Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
2759000 USD
CY2021Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
115000 USD
CY2022Q1 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
686000 USD
CY2021Q1 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
354000 USD
CY2022Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
7242000 USD
CY2021Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
675000 USD
CY2022Q1 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueAmount
6500000 USD
CY2021Q4 us-gaap Equity Securities Without Readily Determinable Fair Value Amount
EquitySecuritiesWithoutReadilyDeterminableFairValueAmount
6500000 USD
CY2022Q1 us-gaap Lease Cost
LeaseCost
2500000 USD
CY2021Q1 us-gaap Lease Cost
LeaseCost
2900000 USD
CY2022Q1 maps Tax Receivable Agreement Liabilities As Percent Of Expected Benefit
TaxReceivableAgreementLiabilitiesAsPercentOfExpectedBenefit
0.85
CY2022Q1 maps Tax Receivable Agreement Percent Recorded In Additional Paid In Capital
TaxReceivableAgreementPercentRecordedInAdditionalPaidInCapital
0.15
CY2021Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
8100000 USD
CY2022Q1 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
7900000 USD
CY2022Q1 us-gaap Contract With Customer Liability Revenue Recognized
ContractWithCustomerLiabilityRevenueRecognized
7900000 USD
CY2022Q1 us-gaap Advertising Expense
AdvertisingExpense
4900000 USD
CY2022Q1 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2021Q1 us-gaap Advertising Expense
AdvertisingExpense
3000000 USD
CY2022Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-1700000 USD
CY2021Q1 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
200000 USD
CY2022Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2022Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Concentrations of Credit Risk</span></div><div style="margin-top:6pt;text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s financial instruments are potentially subject to concentrations of credit risk. The Company places its cash with high quality credit institutions. From time to time, the Company maintains cash balances at certain institutions in excess of the Federal Deposit Insurance Corporation limit. Management believes that the risk of loss is not significant and has not experienced any losses in such accounts.</span></div>
CY2021Q4 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
27460000 USD
CY2022Q1 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
18219000 USD
CY2022Q1 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
45679000 USD
CY2021Q2 maps Reverse Recapitalization Period Of Exchange Agreement
ReverseRecapitalizationPeriodOfExchangeAgreement
P180D
CY2021Q2 us-gaap Conversion Of Stock Shares Converted1
ConversionOfStockSharesConverted1
1 shares
CY2022Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2022Q1 us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 segment
CY2021Q4 us-gaap Goodwill
Goodwill
45295000 USD
CY2022Q1 us-gaap Goodwill Acquired During Period
GoodwillAcquiredDuringPeriod
20427000 USD
CY2022Q1 us-gaap Goodwill
Goodwill
65722000 USD
CY2022Q1 us-gaap Finite Lived Intangible Asset Useful Life
FiniteLivedIntangibleAssetUsefulLife
P9Y4M24D
CY2022Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
21568000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
8080000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
13488000 USD
CY2021 us-gaap Finite Lived Intangible Asset Useful Life
FiniteLivedIntangibleAssetUsefulLife
P10Y4M24D
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
15803000 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
7504000 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
8299000 USD
CY2022Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
600000 USD
CY2021Q1 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
200000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Remainder Of Fiscal Year
FiniteLivedIntangibleAssetsAmortizationExpenseRemainderOfFiscalYear
2418000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
2599000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
2365000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
2034000 USD
CY2022Q1 maps Finite Lived Intangible Asset Expected Amortization After Year Four
FiniteLivedIntangibleAssetExpectedAmortizationAfterYearFour
2285000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
1787000 USD
CY2022Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
13488000 USD
CY2022Q1 us-gaap Accounts Payable Current
AccountsPayableCurrent
6378000 USD
CY2021Q4 us-gaap Accounts Payable Current
AccountsPayableCurrent
4298000 USD
CY2022Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
9965000 USD
CY2021Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
10088000 USD
CY2022Q1 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
6012000 USD
CY2021Q4 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
8769000 USD
CY2022Q1 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
22355000 USD
CY2021Q4 us-gaap Accounts Payable And Accrued Liabilities Current
AccountsPayableAndAccruedLiabilitiesCurrent
23155000 USD
CY2022Q1 us-gaap Shares Issued Price Per Share
SharesIssuedPricePerShare
11.50
CY2021Q3 maps Notice Period To Redeem Warrants
NoticePeriodToRedeemWarrants
P30D
CY2021Q3 maps Class Of Warrant Or Right Threshold Trading Days
ClassOfWarrantOrRightThresholdTradingDays
P20D
CY2021Q3 maps Class Of Warrant Or Right Trading Period
ClassOfWarrantOrRightTradingPeriod
P30D
CY2022Q1 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
18200000 USD
CY2021Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
75000000 shares
CY2022Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2022Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2021Q2 maps Reverse Recapitalization Period Of Exchange Agreement
ReverseRecapitalizationPeriodOfExchangeAgreement
P180D
CY2021Q2 maps Exchange Of Stock Exchange Ratio
ExchangeOfStockExchangeRatio
1 shares
CY2022Q1 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
7517000 USD
CY2022Q1 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
EmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsCapitalizedAmount
410000 USD
CY2022Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
7927000 USD
CY2022Q1 us-gaap Profit Loss
ProfitLoss
-31233000 USD
CY2022Q1 maps Net Income Loss Attributable To Noncontrolling Interest After Reverse Merger
NetIncomeLossAttributableToNoncontrollingInterestAfterReverseMerger
-17340000 USD
CY2022Q1 us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-13893000 USD

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