PublicSquare Reports Third Quarter 2024 Financial Results
PublicSquare (NYSE: PSQH) reported its third quarter 2024 financial results, highlighting significant growth and strategic shifts.
Key points include:
- Net revenue of $6.5 million, a 222% YoY increase.
- Gross margin improved to 64%, up from 27% in Q3 2023.
- Signed contracts potentially yielding $1.0 billion in annualized GMV for payments.
- Completed $10.0 million convertible note private placement and $5.35 million PIPE transaction.
- Launched a cancel-proof payments platform, processing first merchant transactions.
- Strategic reorganization to focus on Fintech and B2B, reducing workforce by ~35%, expected to save $11.0 million annually.
The company aims to achieve positive cash flow by late 2025, driven by enhanced Fintech offerings and a B2B-centric model.
PublicSquare (NYSE: PSQH) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una crescita significativa e cambiamenti strategici.
I punti chiave includono:
- Ricavi netti di 6,5 milioni di dollari, un aumento del 222% rispetto all'anno precedente.
- Il margine lordo è migliorato al 64%, rispetto al 27% nel Q3 2023.
- Contratti firmati che potrebbero generare un GMV annualizzato di 1,0 miliardi di dollari per i pagamenti.
- Completate operazioni di collocamento privato di obbligazioni convertibili per 10,0 milioni di dollari e una transazione PIPE di 5,35 milioni di dollari.
- Lanciata una piattaforma di pagamenti cancellabile, elaborando le prime transazioni con i commercianti.
- Riorganizzazione strategica per concentrarsi su Fintech e B2B, riducendo la forza lavoro di circa il 35%, con un risparmio previsto di 11,0 milioni di dollari all'anno.
La società punta a raggiungere un flusso di cassa positivo entro la fine del 2025, sostenuta da offerte Fintech potenziate e un modello incentrato sul B2B.
PublicSquare (NYSE: PSQH) reportó sus resultados financieros del tercer trimestre de 2024, destacando un crecimiento significativo y cambios estratégicos.
Los puntos clave incluyen:
- Ingresos netos de 6.5 millones de dólares, un aumento del 222% interanual.
- El margen bruto mejoró al 64%, frente al 27% en el Q3 2023.
- Contratos firmados que podrían generar un GMV anualizado de 1.0 mil millones de dólares en pagos.
- Finalización de una colocación privada de notas convertibles por 10.0 millones de dólares y una transacción PIPE de 5.35 millones de dólares.
- Lanzada una plataforma de pagos a prueba de cancelaciones, procesando las primeras transacciones comerciales.
- Reorganización estratégica para enfocarse en Fintech y B2B, reduciendo la plantilla en aproximadamente el 35%, lo que se espera ahorre 11.0 millones de dólares anuales.
La empresa tiene como objetivo lograr un flujo de caja positivo para finales de 2025, impulsada por ofertas Fintech mejoradas y un modelo centrado en B2B.
퍼블릭스퀘어 (NYSE: PSQH)는 2024년 3분기 재무 실적을 보고하며, 상당한 성장과 전략적 변화를 강조했습니다.
주요 내용은 다음과 같습니다:
- 순수익 650만 달러, 전년 대비 222% 증가.
- 총 마진이 64%로 개선되어 2023년 3분기 27%에서 상승했습니다.
- 결제 용도로 연간 10억 달러의 GMV를 생성할 잠재력이 있는 계약 체결.
- 1천만 달러의 전환사채 비공식 공모 및 535만 달러 PIPE 거래 완료.
- 취소가 불가능한 결제 플랫폼 출시, 최초 상인 거래 처리.
- 핀테크 및 B2B에 집중하기 위한 전략적 재편성, 약 35%의 인력 감축, 연간 1천1백만 달러 절감 기대.
회사는 2025년 말까지 긍정적인 현금 흐름을 달성할 계획이며, 강화된 핀테크 제공과 B2B 중심 모델에 의해 추진됩니다.
PublicSquare (NYSE: PSQH) a annoncé ses résultats financiers du troisième trimestre 2024, mettant en avant une croissance significative et des changements stratégiques.
Les points clés incluent :
- Chiffre d'affaires net de 6,5 millions de dollars, soit une augmentation de 222 % par rapport à l'année précédente.
- La marge brute s'est améliorée à 64 %, contre 27 % au T3 2023.
- Contrats signés générant potentiellement 1,0 milliard de dollars de GMV annualisé pour les paiements.
- Placement privé de billets convertibles de 10,0 millions de dollars et transaction PIPE de 5,35 millions de dollars réalisés.
- Lancement d'une plateforme de paiements non annulables, traitement des premières transactions commerçantes.
- Réorganisation stratégique pour se concentrer sur le Fintech et le B2B, réduisant la main-d'œuvre d'environ 35 %, avec des économies prévues de 11,0 millions de dollars par an.
L'entreprise vise à atteindre un flux de trésorerie positif d'ici fin 2025, soutenue par des offres Fintech améliorées et un modèle centré sur le B2B.
PublicSquare (NYSE: PSQH) hat seine finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht und hebt signifikantes Wachstum sowie strategische Veränderungen hervor.
Wichtige Punkte sind:
- Nettoerlös von 6,5 Millionen Dollar, ein Anstieg von 222 % im Vergleich zum Vorjahr.
- Bruttomarge verbesserte sich auf 64 %, gegenüber 27 % im Q3 2023.
- Unterzeichnete Verträge, die potenziell 1,0 Milliarden US-Dollar an annualisiertem GMV für Zahlungen generieren könnten.
- Abgeschlossene private Platzierung von wandelbaren Anleihen über 10,0 Millionen Dollar und PIPE-Transaktion über 5,35 Millionen Dollar.
- Ein nicht stornierbares Zahlungsplattform eingeführt, erste Transaktionen von Händlern verarbeitet.
- Strategische Umstrukturierung, um sich auf Fintech und B2B zu konzentrieren, Reduzierung der Belegschaft um etwa 35 %, wodurch jährliche Einsparungen von 11,0 Millionen Dollar erwartet werden.
Das Unternehmen strebt an, bis Ende 2025 einen positiven Cashflow zu erreichen, unterstützt durch verbesserte Fintech-Angebote und ein B2B-zentriertes Modell.
- Net revenue increased 222% YoY to $6.5 million.
- Gross margin improved to 64% from 27% in Q3 2023.
- Signed contracts for over $1.0 billion in potential annualized GMV.
- Completed $10.0 million convertible note and $5.35 million PIPE transaction.
- Launched cancel-proof payments platform, first merchant expected to process $100 million annually.
- Reorganization expected to save $11.0 million annually, aiming for positive cash flow by late 2025.
- Reorganization led to a workforce reduction of ~35%.
Increased Third Quarter 2024 Net Revenue by
Third Quarter 2024 Gross Margin Performance of
Signed Contracts for Over
Outlines Strategy for Fintech Growth in 2025
THIRD QUARTER 2024 HIGHLIGHTS & SUBSEQUENT EVENTS
-
Net revenue increased to
, a$6.5 million 222% increase in the third quarter 2024 compared to the third quarter 2023 -
Gross Margin was
64% in the third quarter 2024 compared to27% in the third quarter 2023 -
Ended the third quarter 2024 with Cash & Cash Equivalents of
of which$5.7 million was restricted cash$1.0 million -
During the quarter, completed a private placement for a
convertible note with a board member and his affiliates – proceeds intended to fund the growth of its payments business$10.0 million -
After the end of the quarter, completed a private investment in public equity transaction (“PIPE”) of
led by a board member – proceeds intended to help fund the growth of its payments vertical and for other general corporate purposes$5.35 million - Announced the official launch of its cancel-proof payments platform and successfully processed first merchant transactions
-
Executed contracts that could potentially result in annualized payments processing Gross Merchandise Value (“GMV”) of over
- exceeding the company's goal well before the Christmas shopping season$1.0 billion - Implemented a strategic plan to streamline the organization to focus on Fintech and Business-to-Business (“B2B”) going forward
Michael Seifert, Chairman and Chief Executive Officer of PublicSquare, commented, "The third quarter was a pivotal period of transition for PublicSquare as we shifted resources to prioritize our Fintech opportunity, aiming to deliver the distinct business services our merchants have been demanding. In under seven months, we built a truly world-class payments platform that has already proven its value in the market. Starting from zero and in just over four months, we have signed contracts that have the potential to result in over
“Looking towards next year, we believe with our refined roadmap and reduced cash burn, all segments, including the PublicSquare marketplace, will achieve positive cash flows on a standalone basis during 2025 while maintaining strong growth. This solid foundation in our segment performance bolsters our confidence that we can become cash flow positive as an organization by the latter half of 2025. We are thrilled to enter this next chapter of our growth and are encouraged by the enthusiasm throughout our ecosystem."
FINTECH FOCUS & GROWTH
As the Company transitions to a more fintech focused model it has taken significant steps to capture a largely unaddressed and overlooked merchant network.
PublicSquare’s recent Fintech accomplishments:
Payments
- Developed a fully cancel-proof payment stack with advanced tokenization and secure wallet technology to protect customer data
-
Secured contracts that could potentially result in over
in annualized GMV$1.0 billion -
Activated our first
million+ merchant on the payments platform$100 -
Approximately
80% of the Company’s sales pipeline stems from existing Credova Credit/Buy Now, Pay Later (“BNPL”) merchants and PublicSquare Marketplace merchants, who are values-aligned and have actively sought out our payments stack
Credit
-
Signed contracts that could potentially result in
in annualized GMV year-to-date, with billions more currently under negotiation$5.8 billion -
Facilitated
in consumer financing transactions year-to-date, with an average contract value of$53 million $1,024 -
Consumer financing generated approximately
in net revenue in Q3 2024 and attracted over 200,000 applications$3.2 million
Fintech Potential - 2025 & Beyond
As we look to the future, PublicSquare is dedicated to expanding its Fintech offerings with a strategic emphasis on sustainable growth, customer engagement, and values alignment:
-
Strengthen BNPL and Payment Processing Solutions
- Continue to enhance our credit and payment processing offerings, bolstering our cancel-proof ecosystem to continue to meet the demands of values-aligned merchants and consumers
-
Seamless Integration Across Our Merchant Network
- Integrating our fintech solutions across the entire merchant ecosystem, aiming to offer a unified, values-driven, and largely automated experience
-
Monetize the Customer Lifecycle
- Optimizing revenue from customer interactions throughout the customer experience -- from initial point of purchase with the merchant to repeat transactions within the PublicSquare Marketplace
-
Expand Our B2B-Centric Model for Growth
- By transitioning to a B2B focus, we can leverage our merchant partnerships to generate more customers organically, increasing lifetime value while significantly reducing customer acquisition costs
STRATEGIC REORGANIZATION PLAN
In late October the Company enacted a strategic plan where it reorganized vital business functions to improve efficiency, eliminating ~
Third Quarter 2024 Prepared Remarks & Discussion
Management will host a teleconference and webcast to discuss its third quarter 2024 results Today, November 12, 2024 at 4:30 p.m. ET. The conference call can be heard live through a link on the PublicSquare Investor Relations website investors.publicsquare.com. During prepared remarks, management will respond to inbound, submitted questions received ahead of the call. Questions may be submitted starting November 5, 2024, through the Say Technologies platform at saytechnologies.com/psq-holdings-inc-2024-q3. In addition, you may participate in the conference call by dialing (888) 210-4474 domestically or (646) 960-0693 internationally, referencing conference ID # 9605882. Attendees should log in to the webcast or dial in approximately 15 minutes prior to the call’s start time.
About PublicSquare
PublicSquare is a commerce and payments ecosystem, valuing life, family, and liberty. PublicSquare operates under three segments: Marketplace, Financial Technology, and Brands. The primary mission of the Marketplace segment is to help consumers “shop their values” and put purpose behind their purchases. PublicSquare leverages data and insights from the Marketplace to assess its customers’ needs and provide wholly-owned quality financial products and brands. PublicSquare’s Financial Technology segment comprises Credova, a consumer financing and payments company. PublicSquare’s Brands segment comprises EveryLife, a premium D2C life-affirming baby products company. The PublicSquare Marketplace is free to join for both consumers and business owners. Download the app on the App Store or Google Play, or visit PublicSquare.com to learn more.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, and for purposes of the “safe harbor” provisions under the United States Private Securities Litigation Reform Act of 1995. Any statements other than statements of historical fact contained herein are forward-looking statements. Such forward-looking statements include, but are not limited to, expectations, hopes, beliefs, intentions, plans, prospects, financial results or strategies regarding PublicSquare, anticipated product launches, our products and markets, future financial condition, expected future performance and market opportunities of PublicSquare. Forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “might,” “strategy,” “opportunity,” “plan,” “project,” “possible,” “potential,” “project,” “predict,” “scales,” “representative of,” “valuation,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, and in this press release, include statements about our anticipated growth, revenues, financial projections, launch of our payments platform and its anticipated GMV, ability to achieve positive cash flow, and our outlook; however, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication, including, without limitation: (i) unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies for the management, expansion and growth of our operations, including the possibility that any of the anticipated benefits of the Credova transaction will not be realized or will not be realized within the expected time period, (ii) the ability of PublicSquare and Credova to integrate the business successfully and to achieve anticipated synergies and value creation, (iii) changes in the competitive industries and markets in which PublicSquare operates, variations in performance across competitors, changes in laws and regulations affecting PublicSquare’s business and changes in the combined capital structure, (iv) the ability to implement business plans, growth, marketplace and other expectations, and identify and realize additional opportunities, (v) risks related to PublicSquare’s limited operating history, the rollout and/or expansion of its business and the timing of expected business milestones, (vi) risks related to PublicSquare’s potential inability to achieve or maintain profitability and generate significant revenue, (vii) the ability to raise capital on reasonable terms as necessary to develop its products in the timeframe contemplated by PublicSquare’s business plan, (viii) the ability to execute PublicSquare’s anticipated business plans and strategy, (ix) the ability of PublicSquare to enforce its current or future intellectual property, including patents and trademarks, along with potential claims of infringement by PublicSquare of the intellectual property rights of others, (x) actual or potential loss of key influencers, media outlets and promoters of PublicSquare’s business or a loss of reputation of PublicSquare or reduced interest in the mission and values of PublicSquare and the segment of the consumer marketplace it intends to serve, (xi) because the payment processing and credit agreements are terminable at will without notice, merchants that have signed agreements to use PublicSquare's payment processing services may terminate those services or otherwise fail to utilize the services at the expected volume, and (xii) the risk of economic downturn, increased competition, a changing regulatory landscape and related impacts that could occur in the highly competitive consumer marketplace, both online and through “bricks and mortar” operations. The foregoing list of factors is not exhaustive. Recipients should carefully consider such factors and the other risks and uncertainties described and to be described in PublicSquare’s public filings with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Recipients are cautioned not to put undue reliance on forward-looking statements, and PublicSquare does not assume any obligation to, nor does it intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. PublicSquare gives no assurance that PublicSquare will achieve its expectations.
PSQ HOLDINGS, INC. (dba PublicSquare) Condensed Consolidated Balance Sheets |
|||||||
|
September 30,
|
|
December 31,
|
||||
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
4,709,237 |
|
|
$ |
16,446,030 |
|
Restricted cash |
|
966,529 |
|
|
|
— |
|
Accounts receivable, net |
|
622,419 |
|
|
|
204,879 |
|
Loans held for investment, net of allowance for credit losses of |
|
3,567,832 |
|
|
|
— |
|
Interest Receivable |
|
304,599 |
|
|
|
— |
|
Inventory |
|
1,500,715 |
|
|
|
1,439,182 |
|
Prepaid expenses and other current assets |
|
4,288,699 |
|
|
|
3,084,576 |
|
Total current assets |
|
15,960,030 |
|
|
|
21,174,667 |
|
Loans held for investment, net of allowance for credit losses of |
|
680,400 |
|
|
|
— |
|
Property and equipment, net |
|
299,768 |
|
|
|
127,139 |
|
Intangible assets, net |
|
15,948,378 |
|
|
|
3,557,029 |
|
Goodwill |
|
10,930,978 |
|
|
|
— |
|
Operating lease, right-of-use assets |
|
350,782 |
|
|
|
324,238 |
|
Deposits |
|
75,579 |
|
|
|
63,546 |
|
Total assets |
$ |
44,245,915 |
|
|
$ |
25,246,619 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Revolving line of credit |
$ |
3,108,871 |
|
|
$ |
— |
|
Accounts payable |
|
3,664,680 |
|
|
|
1,828,508 |
|
Accrued expenses |
|
906,745 |
|
|
|
1,641,553 |
|
Deferred revenue |
|
571,363 |
|
|
|
225,148 |
|
Operating lease liabilities, current portion |
|
167,749 |
|
|
|
310,911 |
|
Total current liabilities |
|
8,419,408 |
|
|
|
4,006,120 |
|
Convertible promissory notes, related party (Note 12) |
|
20,000,000 |
|
|
|
— |
|
Convertible promissory notes |
|
8,449,500 |
|
|
|
— |
|
Warrant liabilities |
|
2,632,500 |
|
|
|
10,130,000 |
|
Earn-out liabilities |
|
150,000 |
|
|
|
660,000 |
|
Operating lease liabilities |
|
191,502 |
|
|
|
16,457 |
|
Total liabilities |
|
39,842,910 |
|
|
|
14,812,577 |
|
Commitments and contingencies (Note 16) |
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Class A Common stock, |
|
2,945 |
|
|
|
2,441 |
|
Class C Common stock, |
|
321 |
|
|
|
321 |
|
Additional paid in capital |
|
103,562,504 |
|
|
|
72,644,419 |
|
Accumulated deficit |
|
(99,162,765 |
) |
|
|
(62,213,139 |
) |
Total stockholders’ equity |
|
4,403,005 |
|
|
|
10,434,042 |
|
Total liabilities and stockholders’ equity |
$ |
44,245,915 |
|
|
$ |
25,246,619 |
|
PSQ HOLDINGS, INC. (dba PublicSquare) Condensed Consolidated Statements of Operations (Unaudited) |
|||||||||||||||
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues, net |
$ |
6,540,112 |
|
|
$ |
2,030,900 |
|
|
$ |
15,991,229 |
|
|
$ |
2,938,641 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenue (exclusive of depreciation and amortization expense shown below) |
|
609,270 |
|
|
|
569,502 |
|
|
|
1,738,729 |
|
|
|
1,189,440 |
|
Cost of goods sold (exclusive of depreciation and amortization expense shown below) |
|
1,771,109 |
|
|
|
903,672 |
|
|
|
4,601,360 |
|
|
|
903,672 |
|
Transaction costs incurred in connection with the Business Combination |
|
— |
|
|
|
3,309,597 |
|
|
|
— |
|
|
|
7,048,177 |
|
General and administrative |
|
12,295,934 |
|
|
|
4,311,199 |
|
|
|
33,552,605 |
|
|
|
7,448,015 |
|
Sales and marketing |
|
4,607,708 |
|
|
|
3,670,309 |
|
|
|
14,380,677 |
|
|
|
6,739,149 |
|
Research and development |
|
973,544 |
|
|
|
1,486,069 |
|
|
|
3,147,296 |
|
|
|
3,310,943 |
|
Depreciation and amortization |
|
975,090 |
|
|
|
759,745 |
|
|
|
2,202,561 |
|
|
|
2,004,319 |
|
Total costs and expenses |
|
21,232,655 |
|
|
|
15,010,093 |
|
|
|
59,623,228 |
|
|
|
28,643,715 |
|
Operating loss |
|
(14,692,543 |
) |
|
|
(12,979,193 |
) |
|
|
(43,631,999 |
) |
|
|
(25,705,074 |
) |
Other income (expense): |
|
|
|
|
|
|
|
||||||||
Other (expense) income, net |
|
(45,683 |
) |
|
|
119,957 |
|
|
|
110,295 |
|
|
|
173,644 |
|
Change in fair value of convertible promissory notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(14,571,109 |
) |
Change in fair value of earn-out liabilities |
|
170,000 |
|
|
|
450,000 |
|
|
|
510,000 |
|
|
|
450,000 |
|
Change in fair value of warrant liabilities |
|
2,175,000 |
|
|
|
(7,783,000 |
) |
|
|
7,497,500 |
|
|
|
(7,783,000 |
) |
Interest expense, net |
|
(756,760 |
) |
|
|
(46,690 |
) |
|
|
(1,434,241 |
) |
|
|
(210,545 |
) |
Loss before income taxes |
|
(13,149,986 |
) |
|
|
(20,238,926 |
) |
|
|
(36,948,445 |
) |
|
|
(47,646,084 |
) |
Income tax benefit (expense) |
|
12,437 |
|
|
|
262 |
|
|
|
(1,181 |
) |
|
|
(1,527 |
) |
Net loss |
$ |
(13,137,549 |
) |
|
$ |
(20,238,664 |
) |
|
$ |
(36,949,626 |
) |
|
$ |
(47,647,611 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per common share, basic and diluted |
$ |
(0.41 |
) |
|
$ |
(0.77 |
) |
|
$ |
(1.21 |
) |
|
$ |
(2.38 |
) |
Weighted average shares outstanding, basic and diluted |
|
31,758,032 |
|
|
|
26,265,627 |
|
|
|
30,526,102 |
|
|
|
20,058,726 |
|
PSQ HOLDINGS, INC. (dba PublicSquare) Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
For the nine months ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash Flows from Operating Activities |
|
|
|
||||
Net loss |
$ |
(36,949,626 |
) |
|
$ |
(47,647,611 |
) |
Adjustment to reconcile net loss to cash used in operating activities: |
|
|
|
||||
Change in fair value of convertible promissory notes |
|
— |
|
|
|
14,571,109 |
|
Change in fair value of warrant liabilities |
|
(7,497,500 |
) |
|
|
7,783,000 |
|
Change in fair value of earn-out liabilities |
|
(510,000 |
) |
|
|
(450,000 |
) |
Share-based compensation |
|
16,855,006 |
|
|
|
2,095,889 |
|
Realized gain on short term investment |
|
— |
|
|
|
(173,644 |
) |
Amortization of step-up in loans held for investment |
|
501,112 |
|
|
|
— |
|
Provision for credit losses on loans held for investment |
|
549,985 |
|
|
|
— |
|
Origination of loans and leases for resale |
|
(17,315,173 |
) |
|
|
— |
|
Proceeds from sale of loans and leases for resale |
|
19,689,911 |
|
|
|
— |
|
Gain on sale of loans and leases |
|
(2,374,738 |
) |
|
|
— |
|
Depreciation and amortization |
|
2,202,561 |
|
|
|
2,004,319 |
|
Interest expense |
|
— |
|
|
|
58,455 |
|
Non-cash operating lease expense |
|
314,577 |
|
|
|
129,216 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(722,139 |
) |
|
|
(67,604 |
) |
Prepaid expenses and other current assets |
|
65,810 |
|
|
|
(681,471 |
) |
Inventory |
|
(61,533 |
) |
|
|
(1,476,085 |
) |
Deposits |
|
(12,033 |
) |
|
|
(70,202 |
) |
Accounts payable |
|
(1,577,703 |
) |
|
|
2,597,462 |
|
Accrued expenses |
|
(322,928 |
) |
|
|
2,845,964 |
|
Deferred revenue |
|
346,215 |
|
|
|
199,304 |
|
Operating lease payments |
|
(309,238 |
) |
|
|
(130,429 |
) |
Net cash used in operating activities |
|
(27,127,434 |
) |
|
|
(18,412,328 |
) |
|
|
|
|
||||
Cash flows from Investing Activities |
|
|
|
||||
Software development costs |
|
(2,818,954 |
) |
|
|
(1,840,066 |
) |
Principal paydowns on loans held for investment |
|
8,897,046 |
|
|
|
— |
|
Disbursements for loans held for investment |
|
(7,168,697 |
) |
|
|
— |
|
Acquisition of businesses, net of cash acquired |
|
141,215 |
|
|
|
— |
|
Purchase of short-term investments |
|
— |
|
|
|
(10,049,870 |
) |
Proceeds from the sale of short-term investments |
|
— |
|
|
|
10,223,514 |
|
Purchase of intangible assets and trademarks |
|
— |
|
|
|
(86,600 |
) |
Purchases of property and equipment |
|
— |
|
|
|
(113,065 |
) |
Net cash used in investing activities |
|
(949,390 |
) |
|
|
(1,866,087 |
) |
|
|
|
|
||||
Cash flows from Financing Activities |
|
|
|
||||
Proceeds from convertible note payable, related party (Note 12) |
|
20,000,000 |
|
|
|
— |
|
Proceeds from convertible note payable |
|
— |
|
|
|
22,500,000 |
|
Proceeds from reverse recapitalization |
|
— |
|
|
|
18,104,194 |
|
Proceeds from issuance of common stock under stock plans, net of shares withheld for employee taxes |
|
(485,904 |
) |
|
|
— |
|
Proceeds from the issuance of common stock |
|
— |
|
|
|
2,600,125 |
|
Repayments on revolving line of credit |
|
(2,207,536 |
) |
|
|
— |
|
Repayment of subscription payable |
|
— |
|
|
|
(400 |
) |
Net cash provided by financing activities |
|
17,306,560 |
|
|
|
43,203,919 |
|
Net (decrease) increase in cash and cash equivalents |
|
(10,770,264 |
) |
|
|
22,925,504 |
|
Cash, cash equivalents and restricted cash beginning of period |
|
16,446,030 |
|
|
|
2,330,405 |
|
Cash, cash equivalents and restricted cash end of the period |
$ |
5,675,766 |
|
|
$ |
25,255,909 |
|
Cash and cash equivalents |
$ |
4,709,237 |
|
|
$ |
25,255,909 |
|
Restricted cash |
|
966,529 |
|
|
|
— |
|
Total cash, cash equivalents and restricted cash, end of the period |
$ |
5,675,766 |
|
|
$ |
25,255,909 |
|
|
|
|
|
||||
Supplemental Non-Cash Investing and Financing Activity |
|
|
|
||||
Promissory notes, inclusive of accrued interest, converted to equity |
$ |
— |
|
|
$ |
37,294,023 |
|
Initial recognition of earn-out liability |
$ |
— |
|
|
$ |
2,400,000 |
|
Acquisition of warrant liability |
$ |
— |
|
|
$ |
8,816,500 |
|
Prepaid expenses assumed in connection with Business Combination |
$ |
— |
|
|
$ |
2,570,594 |
|
Liabilities assumed in connection with Business Combination |
$ |
— |
|
|
$ |
92,929 |
|
Liabilities paid through the trust |
$ |
— |
|
|
$ |
1,778,672 |
|
Accrued variable compensation settled with RSU grants |
$ |
411,878 |
|
|
$ |
— |
|
Shares issued in connection with Credova Merger |
$ |
14,137,606 |
|
|
$ |
— |
|
Note Exchange in connection with Credova Merger |
$ |
8,449,500 |
|
|
$ |
— |
|
Stock for stock transfer |
$ |
— |
|
|
$ |
1,334,858 |
|
Adjusted EBITDA
We define adjusted EBITDA, a non-GAAP financial measure, as net earnings (loss) before interest and other expenses, net, income tax expense, depreciation and amortization, as adjusted to exclude change in fair value of our financial instruments, other income (expense), net, transaction expenses and share-based compensation expense. We utilize adjusted EBITDA as an internal performance measure in the management of our operations because we believe the exclusion of these non-cash and non-recurring charges allow for a more relevant comparison of our results of operations to other companies in our industry. Adjusted EBITDA should not be viewed as a substitute for net loss calculated in accordance with GAAP, and other companies may define adjusted EBITDA differently.
The following table provides a reconciliation of net loss to adjusted EBITDA to net loss for the periods presented:
|
For the three months ended
|
|
For the nine months ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(13,137,549 |
) |
|
$ |
(20,238,664 |
) |
|
$ |
(36,949,626 |
) |
|
$ |
(47,647,611 |
) |
Excluding: |
|
|
|
|
|
|
|
||||||||
Interest expense, net |
|
756,760 |
|
|
|
46,690 |
|
|
|
1,434,241 |
|
|
|
210,545 |
|
Income tax (benefit) expense |
|
(12,437 |
) |
|
|
(262 |
) |
|
|
1,181 |
|
|
|
1,527 |
|
Change in fair value of convertible promissory notes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
14,571,109 |
|
Change in fair value of earn-out liabilities |
|
(170,000 |
) |
|
|
(450,000 |
) |
|
|
(510,000 |
) |
|
|
(450,000 |
) |
Change in fair value of warrant liabilities |
|
(2,175,000 |
) |
|
|
7,783,000 |
|
|
|
(7,497,500 |
) |
|
|
7,783,000 |
|
Other expense (income), net |
|
45,683 |
|
|
|
(119,957 |
) |
|
|
(110,295 |
) |
|
|
(173,644 |
) |
Depreciation and amortization |
|
975,090 |
|
|
|
759,745 |
|
|
|
2,202,561 |
|
|
|
2,004,319 |
|
Share-based compensation (exclusive of what is shown above in transaction costs) |
|
5,796,823 |
|
|
|
1,185,089 |
|
|
|
15,967,598 |
|
|
|
1,185,089 |
|
Transaction costs incurred in connection with acquisitions |
|
— |
|
|
|
3,309,597 |
|
|
|
2,295,502 |
|
|
|
7,048,177 |
|
Corporate operating expenses |
|
3,503,643 |
|
|
|
3,774,266 |
|
|
|
11,937,517 |
|
|
|
8,230,417 |
|
Adjusted EBITDA |
$ |
(4,416,987 |
) |
|
$ |
(3,950,496 |
) |
|
$ |
(11,228,821 |
) |
|
$ |
(7,237,072 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241112611041/en/
Investors Contact:
investment@publicsquare.com
Media Contact:
pr@publicsquare.com
Source: PSQ Holdings, Inc.
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