2021 Q4 Form 10-K Financial Statement

#000166299122000006 Filed on March 30, 2022

View on sec.gov

Income Statement

Concept 2021 Q4 2021 2020 Q4
Revenue $60.94M $114.8M $38.01M
YoY Change 60.35% 95.31% 230.39%
Cost Of Revenue $24.98M $43.48M $13.78M
YoY Change 81.23% 93.32% 156.76%
Gross Profit $35.96M $71.34M $24.22M
YoY Change 48.46% 96.54% 294.82%
Gross Profit Margin 59.01% 62.13% 63.73%
Selling, General & Admin $74.71M $15.77M $45.57M
YoY Change 63.95% 118.57% 258.01%
% of Gross Profit 207.76% 22.1% 188.14%
Research & Development $1.462M $64.00K
YoY Change 198.37% -72.53%
% of Gross Profit 2.05% 0.26%
Depreciation & Amortization $410.1K $749.1K $243.7K
YoY Change 68.24% 74.87% 64.79%
% of Gross Profit 1.14% 1.05% 1.01%
Operating Expenses $77.99M $17.23M $45.88M
YoY Change 70.0% 123.64% 249.96%
Operating Profit -$42.03M -$68.68M -$21.66M
YoY Change 94.08% 145.89% 210.5%
Interest Expense -$2.620M $5.269M -$2.239M
YoY Change 17.01% 22.45% 75.05%
% of Operating Profit
Other Income/Expense, Net -$80.47K -$65.15K -$290.4K
YoY Change -72.29% -48.42% 620.65%
Pretax Income -$44.74M -$75.11M -$24.19M
YoY Change 84.97% 132.09% 191.6%
Income Tax $17.94K $58.42K $22.59K
% Of Pretax Income
Net Earnings -$44.76M -$75.17M -$24.21M
YoY Change 84.87% 132.05% 191.45%
Net Earnings / Revenue -73.44% -65.47% -63.7%
Basic Earnings Per Share -$0.38
Diluted Earnings Per Share -$220.2K -$0.38 -$124.4K
COMMON SHARES
Basic Shares Outstanding 203.9M shares 200.3M shares
Diluted Shares Outstanding 200.3M shares

Balance Sheet

Concept 2021 Q4 2021 2020 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $76.98M $76.98M $84.29M
YoY Change -8.66% -8.66% 141.06%
Cash & Equivalents $76.98M $76.98M $84.29M
Short-Term Investments
Other Short-Term Assets $5.236M $5.236M $6.504M
YoY Change -19.49% -19.49% 157.86%
Inventory
Prepaid Expenses
Receivables $139.2M $139.2M $84.27M
Other Receivables $5.084M -$156.8K $1.403M
Total Short-Term Assets $221.3M $221.3M $173.0M
YoY Change 27.91% 27.91% 174.64%
LONG-TERM ASSETS
Property, Plant & Equipment $662.5K $948.3K $375.2K
YoY Change 76.57% 82.11% -62.54%
Goodwill
YoY Change
Intangibles $537.0K
YoY Change
Long-Term Investments
YoY Change
Other Assets $233.8K $253.7K $32.54K
YoY Change 618.42% 382.97% -52.96%
Total Long-Term Assets $2.113M $2.113M $1.110M
YoY Change 90.27% 90.27% -28.41%
TOTAL ASSETS
Total Short-Term Assets $221.3M $221.3M $173.0M
Total Long-Term Assets $2.113M $2.113M $1.110M
Total Assets $223.4M $223.4M $174.1M
YoY Change 28.31% 28.31% 169.76%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $96.52M $96.52M $60.93M
YoY Change 58.4% 58.4% 358.68%
Accrued Expenses $7.997M $8.169M $6.681M
YoY Change 19.7% 19.71% 224.39%
Deferred Revenue $0.00
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $107.6M $107.6M $68.37M
YoY Change 57.31% 57.31% 337.95%
LONG-TERM LIABILITIES
Long-Term Debt $77.96M $77.96M $41.30M
YoY Change 88.78% 88.78% 95.63%
Other Long-Term Liabilities $0.00 $90.96K $4.483M
YoY Change -100.0% -97.97% 796.38%
Total Long-Term Liabilities $0.00 $78.05M $4.483M
YoY Change -100.0% 70.5% -79.25%
TOTAL LIABILITIES
Total Short-Term Liabilities $107.6M $107.6M $68.37M
Total Long-Term Liabilities $0.00 $78.05M $4.483M
Total Liabilities $185.6M $185.6M $114.2M
YoY Change 62.6% 62.6% 206.69%
SHAREHOLDERS EQUITY
Retained Earnings -$127.4M -$52.23M
YoY Change 143.91%
Common Stock $2.044K $1.970K
YoY Change 3.76%
Preferred Stock
YoY Change
Treasury Stock (at cost) $3.691M $875.2K
YoY Change 321.75%
Treasury Stock Shares 660.1K shares 152.0K shares
Shareholders Equity $37.79M $37.79M $59.96M
YoY Change
Total Liabilities & Shareholders Equity $223.4M $223.4M $174.1M
YoY Change 28.31% 28.31% 169.76%

Cashflow Statement

Concept 2021 Q4 2021 2020 Q4
OPERATING ACTIVITIES
Net Income -$44.76M -$75.17M -$24.21M
YoY Change 84.87% 132.05% 191.45%
Depreciation, Depletion And Amortization $410.1K $749.1K $243.7K
YoY Change 68.24% 74.87% 64.79%
Cash From Operating Activities -$66.54M -$72.13M -$27.34M
YoY Change 143.42% 190.75% 103.23%
INVESTING ACTIVITIES
Capital Expenditures -$747.7K $686.0K -$486.9K
YoY Change 53.58% 66.96% 68.11%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$747.7K -$1.420M -$486.9K
YoY Change 53.58% 93.75% 68.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$27.35M
YoY Change -54.3%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 86.56M $63.24M 60.75M
YoY Change 42.48% -18.47% 39.95%
NET CHANGE
Cash From Operating Activities -66.54M -$72.13M -27.34M
Cash From Investing Activities -747.7K -$1.420M -486.9K
Cash From Financing Activities 86.56M $63.24M 60.75M
Net Change In Cash 19.27M -$10.31M 32.93M
YoY Change -41.49% -119.82% 10.98%
FREE CASH FLOW
Cash From Operating Activities -$66.54M -$72.13M -$27.34M
Capital Expenditures -$747.7K $686.0K -$486.9K
Free Cash Flow -$65.79M -$72.82M -$26.85M
YoY Change 145.05% 188.73% 104.01%

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DepreciationDepletionAndAmortization
428374 USD
CY2021 szl Proceeds From Collection Of Stock Subscriptions Related To Stock Option Exercises
ProceedsFromCollectionOfStockSubscriptionsRelatedToStockOptionExercises
246999 USD
CY2021 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
52621682 USD
CY2020 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
19587918 USD
CY2021 us-gaap Provision For Other Credit Losses
ProvisionForOtherCreditLosses
7349852 USD
CY2020 us-gaap Provision For Other Credit Losses
ProvisionForOtherCreditLosses
2723853 USD
CY2021 us-gaap Share Based Compensation
ShareBasedCompensation
14161754 USD
CY2020 us-gaap Share Based Compensation
ShareBasedCompensation
7010844 USD
CY2021 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
689930 USD
CY2020 us-gaap Amortization Of Financing Costs
AmortizationOfFinancingCosts
417054 USD
CY2021 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
5475 USD
CY2020 us-gaap Impairment Of Long Lived Assets Held For Use
ImpairmentOfLongLivedAssetsHeldForUse
7850 USD
CY2021 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-1092679 USD
CY2020 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
0 USD
CY2021 us-gaap Increase Decrease In Finance Receivables
IncreaseDecreaseInFinanceReceivables
105950424 USD
CY2020 us-gaap Increase Decrease In Finance Receivables
IncreaseDecreaseInFinanceReceivables
74983119 USD
CY2021 us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
11031826 USD
CY2020 us-gaap Increase Decrease In Other Receivables
IncreaseDecreaseInOtherReceivables
3810392 USD
CY2021 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
1855206 USD
CY2020 us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
795884 USD
CY2021 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
35696079 USD
CY2020 us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
47467731 USD
CY2021 us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
2111082 USD
CY2020 us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
84962 USD
CY2021 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
7416249 USD
CY2020 us-gaap Increase Decrease In Accrued Liabilities
IncreaseDecreaseInAccruedLiabilities
9469738 USD
CY2021 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-20124 USD
CY2020 us-gaap Increase Decrease In Operating Lease Liability
IncreaseDecreaseInOperatingLeaseLiability
-25050 USD
CY2021 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-72132050 USD
CY2020 us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-24808861 USD
CY2021 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
686032 USD
CY2020 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
410896 USD
CY2021 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
733995 USD
CY2020 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
322015 USD
CY2021 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
765786 USD
CY2021 us-gaap Repayments Of Other Long Term Debt
RepaymentsOfOtherLongTermDebt
1220332 USD
CY2020 us-gaap Repayments Of Other Long Term Debt
RepaymentsOfOtherLongTermDebt
0 USD
CY2020 us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
427731 USD
CY2021 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-1420027 USD
CY2020 us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-732911 USD
CY2021 us-gaap Proceeds From Issuance Of Other Long Term Debt
ProceedsFromIssuanceOfOtherLongTermDebt
0 USD
CY2020 us-gaap Proceeds From Issuance Of Other Long Term Debt
ProceedsFromIssuanceOfOtherLongTermDebt
1220332 USD
CY2021 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
174666667 USD
CY2020 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
85650000 USD
CY2021 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
135866667 USD
CY2020 us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
67100000 USD
CY2021 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
1697705 USD
CY2020 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
CY2021 us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
1000000 USD
CY2020 us-gaap Payments Of Debt Extinguishment Costs
PaymentsOfDebtExtinguishmentCosts
0 USD
CY2021 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
30000000 USD
CY2020 szl Proceeds From Collection Of Stock Subscriptions Related To Stock Option Exercises
ProceedsFromCollectionOfStockSubscriptionsRelatedToStockOptionExercises
8475 USD
CY2021 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
2652014 USD
CY2020 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
611215 USD
CY2021 szl Payments For Retirement Of Common Stock
PaymentsForRetirementOfCommonStock
0 USD
CY2020 szl Payments For Retirement Of Common Stock
PaymentsForRetirementOfCommonStock
2234 USD
CY2020 us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
60457256 USD
CY2021 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
2768 USD
CY2020 us-gaap Payments Of Stock Issuance Costs
PaymentsOfStockIssuanceCosts
2484504 USD
CY2021 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
63239966 USD
CY2020 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
77565841 USD
CY2021 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
98376 USD
CY2020 us-gaap Effect Of Exchange Rate On Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
455216 USD
CY2021 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-10312111 USD
CY2020 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
52024069 USD
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
89103903 USD
CY2019Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
36624618 USD
CY2021Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
78890168 USD
CY2020Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
89103903 USD
CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
328341 USD
CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
0 USD
CY2021 szl Issuance Of Restricted Stock Units For Settlement Of Accrued Expenses
IssuanceOfRestrictedStockUnitsForSettlementOfAccruedExpenses
1996779 USD
CY2020 szl Issuance Of Restricted Stock Units For Settlement Of Accrued Expenses
IssuanceOfRestrictedStockUnitsForSettlementOfAccruedExpenses
0 USD
CY2021 szl Conversion Of Liability Classified Incentive Award
ConversionOfLiabilityClassifiedIncentiveAward
8580123 USD
CY2020 szl Conversion Of Liability Classified Incentive Award
ConversionOfLiabilityClassifiedIncentiveAward
0 USD
CY2021 us-gaap Adjustments Related To Tax Withholding For Share Based Compensation
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation
164081 USD
CY2020 us-gaap Adjustments Related To Tax Withholding For Share Based Compensation
AdjustmentsRelatedToTaxWithholdingForShareBasedCompensation
264017 USD
CY2021 us-gaap Interest Paid Net
InterestPaidNet
4819604 USD
CY2020 us-gaap Interest Paid Net
InterestPaidNet
3770838 USD
CY2021 us-gaap Income Taxes Paid
IncomeTaxesPaid
56017 USD
CY2020 us-gaap Income Taxes Paid
IncomeTaxesPaid
8326 USD
CY2021Q4 szl Financing Receivable Installment Payment Plan Number Of Installments
FinancingReceivableInstallmentPaymentPlanNumberOfInstallments
4 installment
CY2021 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;text-decoration:underline">Concentrations of Credit Risk</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Cash and Cash Equivalents</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash in depository accounts that, at times, may exceed limits established by the Federal Deposit Insurance Corporation (“FDIC”) and equivalent foreign institutions. As of the date of this report, the Company has experienced no losses on such accounts.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Foreign Currency Risk</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company holds funds and settles payments that are denominated in currencies other than U.S. dollars. Changes in foreign currency exchange rates expose the Company to fluctuations on its consolidated balance sheets and statements of operations and comprehensive loss. Currency risk is managed through limits set on total foreign deposits on hand that the Company routinely monitors.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Notes Receivable</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is exposed to the risk of credit losses as a result of extending credit to consumers. Changes in economic conditions may result in higher credit losses. The Company has a policy for establishing credit lines for individual consumers that helps mitigate credit risk. The allowance for uncollectible accounts is adequate for covering any potential losses on outstanding notes receivable.</span></div>
CY2021Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
76983728 USD
CY2020Q4 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
84285383 USD
CY2021Q4 szl Deposit Assets Minimum Balance Requirement
DepositAssetsMinimumBalanceRequirement
25000 USD
CY2021Q4 szl Financing Receivable Installment Payment Plan Number Of Installments
FinancingReceivableInstallmentPaymentPlanNumberOfInstallments
4 installment
CY2021Q4 us-gaap Financing Receivable Deferred Income
FinancingReceivableDeferredIncome
5240919 USD
CY2021Q4 szl Deposit Asset Percentage Of Highest Funded Facility During Previous Two Collection Periods
DepositAssetPercentageOfHighestFundedFacilityDuringPreviousTwoCollectionPeriods
0.01
CY2021Q4 us-gaap Restricted Cash Current
RestrictedCashCurrent
1886440 USD
CY2020Q4 us-gaap Restricted Cash Current
RestrictedCashCurrent
4798520 USD
CY2021Q4 us-gaap Restricted Cash Noncurrent
RestrictedCashNoncurrent
20000 USD
CY2021 us-gaap Financing Receivable Allowance For Credit Losses Policy For Uncollectible Amounts
FinancingReceivableAllowanceForCreditLossesPolicyForUncollectibleAmounts
<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;text-decoration:underline">Receivables and Credit Policy</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Notes receivable represent amounts from uncollateralized consumer receivables generated from the purchase of merchandise. The original terms of the notes for the Company’s core product are to be paid back in four equal installments every two weeks over a six-week period, with the first installment being paid at the time of purchase. The Company does not charge interest on the notes to consumers. Sezzle income is recognized over the average life of the notes receivable using the effective interest rate method. These net deferred costs are recorded within notes receivable, net on the consolidated balance sheets. Notes receivable are recorded at net realizable value and are recorded as current assets. The Company evaluates the collectability of the balances based on historical performance, current economic conditions, and specific circumstances of individual notes, with an allowance for uncollectible accounts being provided as necessary.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Other receivables represents the net realizable value of consumer account reactivation fees receivable, merchant accounts receivable, and merchant processing fees receivable. Consumer account reactivation fees receivable, less an allowance for uncollectible accounts, represents the amount of account reactivation fees the Company reasonably expects to receive from consumers. Receivables from merchants represent amounts merchants owe Sezzle relating to transactions placed by consumers on their sites.</span></div>All notes receivable from consumers, as well as related fees, outstanding greater than 90 days past due are charged off as uncollectible. It is the Company’s practice to continue collection efforts after the charge-off date.<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Sezzle maintains an allowance for uncollectible accounts at a level necessary to absorb estimated probable losses on principal and reschedule fee receivables from consumers. Any amounts delinquent after 90 days are charged-off with an offsetting reversal of the allowance for doubtful accounts through the provision for uncollectible accounts. Additionally, amounts identified as no longer collectible—such as when a consumer becomes deceased or bankrupt—are charged off immediately. Principal payments recovered after the 90 day charge-off period are recognized as a reduction to the allowance for uncollectible accounts in the period the receivable is recovered. Sezzle has not changed the methodology for estimating its allowance for uncollectible accounts during the year ended December 31, 2021.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Sezzle uses its judgment to evaluate the allowance for uncollectible accounts based on current economic conditions and historical performance of consumer payments. The historical vintages are grouped into semi-monthly populations for purposes of the allowance assessment. The balances of historical cumulative charge-offs by vintage support the calculation for estimating the allowance for uncollectible accounts for vintages outstanding less than 90 days.</span></div>Sezzle estimates the allowance for uncollectible accounts by segmenting consumer accounts receivable by the number of days balances are delinquent. Balances that are at least one day past the initial due date are considered delinquent. Balances that are not delinquent are considered current. Consumer notes receivable are charged-off following the passage of 90 days without receiving a qualifying payment, upon notice of bankruptcy, or death. Consumers are allowed to reschedule a payment one time without incurring a reschedule fee and the principal of a rescheduled payment is not considered to be delinquent. If consumers reschedule a payment more than once in the same order cycle they are subject to a reschedule fee.
CY2020Q4 us-gaap Financing Receivable Deferred Income
FinancingReceivableDeferredIncome
3458222 USD
CY2021Q4 szl Capitalization Policy Threshold
CapitalizationPolicyThreshold
1000 USD
CY2021Q4 szl Capitalization Policy Threshold
CapitalizationPolicyThreshold
1000 USD
CY2021 us-gaap Research And Development In Process
ResearchAndDevelopmentInProcess
1462000 USD
CY2020 us-gaap Research And Development In Process
ResearchAndDevelopmentInProcess
490000 USD
CY2021 us-gaap Asset Impairment Charges
AssetImpairmentCharges
5475 USD
CY2020 us-gaap Asset Impairment Charges
AssetImpairmentCharges
7850 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
747053 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
397127 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
910584 USD
CY2021 us-gaap Advertising Expense
AdvertisingExpense
8569276 USD
CY2020 us-gaap Advertising Expense
AdvertisingExpense
3883936 USD
CY2021 us-gaap Use Of Estimates
UseOfEstimates
<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%;text-decoration:underline">Estimates</span></div><div><span><br/></span></div><div><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 U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The Company’s estimates and judgments are based on historical experience and various other assumptions that it believes are reasonable under the circumstances. The amount of assets and liabilities reported on the Company’s consolidated balance sheets and the amounts of income and expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, determining the allowance for uncollectible accounts recorded against outstanding receivables, the useful life of property and equipment and internally developed intangible assets, determining impairment of property and equipment and internally developed intangible assets, valuation of equity based compensation, leases, and income taxes.</span></div>
CY2021 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1 segment
CY2021 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-69228 USD
CY2020 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-125292 USD
CY2021 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
69406 USD
CY2020 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentNetOfTaxPortionAttributableToParent
494505 USD
CY2020Q4 us-gaap Notes Receivable Gross
NotesReceivableGross
95398668 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
537046 USD
CY2021 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
355043 USD
CY2020 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
257425 USD
CY2021Q4 us-gaap Notes Receivable Gross
NotesReceivableGross
162341675 USD
CY2021Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
1343623 USD
CY2020Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
665343 USD
CY2021Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
681151 USD
CY2020Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
290157 USD
CY2021Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
662472 USD
CY2020Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
375186 USD
CY2021 us-gaap Depreciation
Depreciation
394068 USD
CY2020 us-gaap Depreciation
Depreciation
170949 USD
CY2021Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
1657637 USD
CY2020Q4 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
934173 USD
CY2020Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
11133146 USD
CY2019Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
3461837 USD
CY2021 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
52621682 USD
CY2020 us-gaap Provision For Loan Losses Expensed
ProvisionForLoanLossesExpensed
19587918 USD
CY2021 us-gaap Financing Receivable Allowance For Credit Losses Recovery
FinancingReceivableAllowanceForCreditLossesRecovery
6153728 USD
CY2021Q1 us-gaap Financing Receivable Allowance For Credit Losses Recovery
FinancingReceivableAllowanceForCreditLossesRecovery
648799 USD
CY2021 szl Financing Receivable Allowance For Credit Loss Write Off Net
FinancingReceivableAllowanceForCreditLossWriteOffNet
40640655 USD
CY2020 szl Financing Receivable Allowance For Credit Loss Write Off Net
FinancingReceivableAllowanceForCreditLossWriteOffNet
11916609 USD
CY2021Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
23114173 USD
CY2020Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
11133146 USD
CY2021Q4 szl Financing Receivable After Allowance For Credit Loss Before Deferred Income
FinancingReceivableAfterAllowanceForCreditLossBeforeDeferredIncome
139227502 USD
CY2020Q4 szl Financing Receivable After Allowance For Credit Loss Before Deferred Income
FinancingReceivableAfterAllowanceForCreditLossBeforeDeferredIncome
84265522 USD
CY2021Q4 us-gaap Financing Receivable Deferred Income
FinancingReceivableDeferredIncome
5240919 USD
CY2020Q4 us-gaap Financing Receivable Deferred Income
FinancingReceivableDeferredIncome
3458222 USD
CY2021Q4 us-gaap Notes Receivable Net
NotesReceivableNet
133986583 USD
CY2020Q4 us-gaap Notes Receivable Net
NotesReceivableNet
80807300 USD
CY2021 szl Note Receivable Weighted Average Days Outstanding
NoteReceivableWeightedAverageDaysOutstanding
P34D
CY2021Q4 us-gaap Notes Receivable Gross
NotesReceivableGross
162341675 USD
CY2021Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
23114173 USD
CY2021Q4 szl Financing Receivable After Allowance For Credit Loss Before Deferred Income
FinancingReceivableAfterAllowanceForCreditLossBeforeDeferredIncome
139227502 USD
CY2020Q4 us-gaap Notes Receivable Gross
NotesReceivableGross
95398668 USD
CY2020Q4 us-gaap Financing Receivable Allowance For Credit Losses
FinancingReceivableAllowanceForCreditLosses
11133146 USD
CY2020Q4 szl Financing Receivable After Allowance For Credit Loss Before Deferred Income
FinancingReceivableAfterAllowanceForCreditLossBeforeDeferredIncome
84265522 USD
CY2021Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
5084099 USD
CY2020Q4 us-gaap Other Receivables Net Current
OtherReceivablesNetCurrent
1403306 USD
CY2021 szl Allowance For Credit Loss Receivable Other Current Recoveries
AllowanceForCreditLossReceivableOtherCurrentRecoveries
1273319 USD
CY2020 szl Allowance For Credit Loss Receivable Other Current Recoveries
AllowanceForCreditLossReceivableOtherCurrentRecoveries
71110 USD
CY2021 us-gaap Operating Lease Expense
OperatingLeaseExpense
472876 USD
CY2020 us-gaap Operating Lease Expense
OperatingLeaseExpense
513248 USD
CY2021 us-gaap Operating Lease Payments
OperatingLeasePayments
466315 USD
CY2020 us-gaap Operating Lease Payments
OperatingLeasePayments
558631 USD
CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
RightOfUseAssetObtainedInExchangeForOperatingLeaseLiability
328341 USD
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
205637 USD
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Two
LesseeOperatingLeaseLiabilityPaymentsDueYearTwo
91133 USD
CY2021Q4 us-gaap Lessee Operating Lease Liability Payments Due Year Three
LesseeOperatingLeaseLiabilityPaymentsDueYearThree
12753 USD
CY2021Q4 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
LesseeOperatingLeaseLiabilityUndiscountedExcessAmount
46602 USD
CY2021Q4 us-gaap Operating Lease Liability
OperatingLeaseLiability
262921 USD
CY2021Q4 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P1Y6M
CY2021Q4 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.0525
CY2021Q4 us-gaap Other Commitment
OtherCommitment
6700000 USD
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
-63143175 USD
CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Domestic
IncomeLossFromContinuingOperationsBeforeIncomeTaxesDomestic
-29879368 USD
CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
IncomeLossFromContinuingOperationsBeforeIncomeTaxesForeign
-11966772 USD
CY2020 us-gaap Income Loss From Continuing Operations Before Income Taxes Foreign
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