Wm Technology, Inc 10-Q for FY2022 Q3

Wm Technology, Inc. (MAPS)

10-Q 2022-11-08 For: 2022-09-30

Added on April 11, 2026

About this 10-Q

Wm Technology, Inc filed this 10-Q on November 8, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $50.5M; down 0.8% from $50.88M a year earlier
Net loss: $5.16M; compared with net income of $20.84M a year earlier

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Delaware						98-1605615
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

41 Discovery Irvine, California						92618
(Address of Principal Executive Offices)						(Zip Code)


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share	MAPS	The Nasdaq Global Select Market
Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 per share	MAPSW	The Nasdaq Global Select Market


		Page

	Forward-Looking Statements

Part I - Financial Information		2
Item 1.	Condensed Consolidated Financial Statements (Unaudited)	2
	Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	2
	Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2022 and 2021	3
	Condensed Consolidated Statements of Equity for the Three and Nine Months Ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	33
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	50
Item 4.	Controls and Procedures	51

Part II - Other Information		52
Item 1.	Legal Proceedings	52
Item 1A.	Risk Factors	52
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53
Item 3.	Defaults Upon Senior Securities	53
Item 4.	Mine Safety Disclosures	53
Item 5.	Other Information	53
Item 6.	Exhibits	54
Signatures		55


	September 30, 2022		December 31, 2021
Assets
Current assets
Cash	$	34,170	$	67,777
Accounts receivable, net	16,642		17,550
Prepaid expenses and other current assets	11,201		13,607
Total current assets	62,013		98,934
Property and equipment, net	23,246		13,283
Goodwill	67,156		45,295
Intangible assets, net	10,597		8,299
Right-of-use assets	32,634		36,549
Deferred tax assets	186,287		152,097
Other assets	12,002		10,687
Total assets	$	393,935	$	365,144
Liabilities and Equity
Current liabilities
Accounts payable and accrued expenses	$	24,225	$	23,155
Deferred revenue	6,648		8,057
Operating lease liabilities, current	6,105		5,463
Other current liabilities	98		1,125
Total current liabilities	37,076		37,800
Operating lease liabilities, non-current	34,709		39,377
Tax Receivable Agreement liability	142,892		128,567
Warrant liability	6,855		27,460
Other long-term liabilities	3,366		—
Total liabilities	224,898		233,204
Commitments and contingencies (Note 3)
Stockholders’ equity
Preferred Stock - $0.0001 par value; 75,000,000 shares authorized; no shares issued and outstanding at September 30, 2022 and December 31, 2021	—		—
Class A Common Stock - $0.0001 par value; 1,500,000,000 shares authorized; 90,372,205 shares issued and outstanding at September 30, 2022 and 65,677,361 shares issued and outstanding at December 31, 2021	9		7
Class V Common Stock - $0.0001 par value; 500,000,000 shares authorized, 56,066,624 shares issued and outstanding at September 30, 2022 and 65,502,347 shares issued and outstanding at December 31, 2021	5		7
Additional paid-in capital	61,375		2,173
Retained earnings	54,004		61,369
Total WM Technology, Inc. stockholders’ equity	115,393		63,556
Noncontrolling interests	53,644		68,384

Total equity	169,037		131,940
Total liabilities and equity	$	393,935	$	365,144


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues	$	50,500	$	50,884	$	166,246	$	138,969

Operating expenses
Cost of revenues	4,272		2,035		11,870		5,800
Sales and marketing	17,882		12,806		61,887		37,194
Product development	11,988		7,782		38,341		25,921
General and administrative	33,490		23,220		92,155		70,356
Depreciation and amortization	2,513		980		8,916		2,970
Total operating expenses	70,145		46,823		213,169		142,241
Operating (loss) income	(19,645)		4,061		(46,923)		(3,272)
Other income (expenses)
Change in fair value of warrant liability	6,590		45,837		20,605		83,628
Other expense, net	(50)		(300)		(1,230)		(6,341)
(Loss) income before income taxes	(13,105)		49,598		(27,548)		74,015
(Benefit from) provision for income taxes	(2,641)		393		(5,699)		242
Net (loss) income	(10,464)		49,205		(21,849)		73,773
Net (loss) income attributable to noncontrolling interests	(5,300)		28,370		(14,484)		48,675
Net (loss) income attributable to WM Technology, Inc.	$	(5,164)	$	20,835	$	(7,365)	$	25,098

Class A Common Stock:
Basic (loss) income per share	$	(0.06)	$	0.32	$	(0.09)	$	0.39
Diluted (loss) income per share	$	(0.06)	$	0.02	$	(0.09)	$	(0.15)

Class A Common Stock:
Weighted average basic shares outstanding	89,552,914		64,216,732		82,872,137		64,149,699
Weighted average diluted shares outstanding	89,552,914		68,304,372		82,872,137		69,950,141


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three and Nine Months Ended September 30, 2022
	Common Stock Class A			Common Stock Class V			Additional Paid-in Capital			Retained Earnings		Total WM Technology, Inc. Stockholders’ Equity		Non-controlling Interests		Total Equity
	Shares	Par Value		Shares	Par Value
As of December 31, 2021	65,677,361	$	7	65,502,347	$	7	$	2,173		$	61,369	$	63,556	$	68,384	$	131,940
Stock-based compensation	—	—		—	—		7,246			—		7,246		681		7,927
Issuance of common stock - vesting of restricted stock units, net of shares withheld for taxes	879,284	—		—	—		(6)			—		(6)		(7)		(13)
Issuance of common stock for acquisition (Note 6)	4,721,706	—		—	—		12,836			—		12,836		15,889		28,725
Issuance of common stock - Class A Unit exchange	4,295,574	1		(4,295,574)	(1)		3,669			—		3,669		(3,669)		—
Issuance of common stock - Class P Unit exchange	7,525,045	—		—	—		6,427			—		6,427		(6,427)		—
Issuance of common stock - warrants exercised	20	—		—	—		—			—		—		—		—
Impact of Tax Receivable Agreement due to exchanges of Class A Units	—	—		—	—		11,625			—		11,625		—		11,625
Net loss	—	—		—	—		—			(13,893)		(13,893)		(17,340)		(31,233)
As of March 31, 2022	83,098,990	8		61,206,773	6		43,970			47,476		91,460		57,511		148,971
Stock-based compensation	—	—		—	—		8,015			—		8,015		598		8,613
Distributions	—	—		—	—		—			—		—		(1,790)		(1,790)
Issuance of common stock - vesting of restricted stock units	543,118	—		—	—		—			—		—		—		—
Impact of Tax Receivable Agreement due to exchanges of Class A Units		—		—	—		2,282			—		2,282		—		2,282
Class A Common shares issued - Class A Unit exchange	4,740,760	1		(4,740,760)	(1)		4,436			—		4,436		(4,436)		—
Class A Common shares issued - Class P Unit exchange	453,460	—		—	—		432			—		432		(432)		—
Net income	—	—		—	—		—			11,692		11,692		8,156		19,848
As of June 30, 2022	88,836,328	9		56,466,013	5		59,135			59,168		118,317		59,607		177,924
Stock-based compensation	—	—		—	—		1,409			—		1,409		567		1,976
Distributions	—	—		—	—		—			—		—		(658)		(658)
Issuance of common stock - vesting of restricted stock units, net of shares withheld for employee taxes	915,544	—		—	—		—			—		—		—		—
Impact of Tax Receivable Agreement due to exchanges of Class A Units	—	—		—	—		259		—	—		259		—		259
Class A Common shares issued - Class A Unit exchange	399,389	—		(399,389)	—		367		—	—		367		(367)		—
Class A Common shares issued - Class P Unit exchange	220,944	—		—	—		205		—	—		205		(205)		—

Net loss	—	—		—	—		—			(5,164)		(5,164)		(5,300)		(10,464)
As of September 30, 2022	90,372,205	$	9	56,066,624	$	5	$	61,375		$	54,004	$	115,393	$	53,644	$	169,037


	Level	September 30, 2022		December 31, 2021
Liabilities:
Warrant liability – Public Warrants	1	$	4,125	$	16,750
Warrant liability – Private Placement Warrants	3	2,730		10,710
Total warrant liability		$	6,855	$	27,460


	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Public Warrants		Private Placement Warrants		Warrant Liabilities		Public Warrants		Private Placement Warrants		Warrant Liabilities
Fair value, beginning of period	$	8,125	$	5,320	$	13,445	$	16,750	$	10,710	$	27,460

Change in valuation inputs or other assumptions	(4,000)		(2,590)		(6,590)		(12,625)		(7,980)		(20,605)
Fair value, end of period	$	4,125	$	2,730	$	6,855	$	4,125	$	2,730	$	6,855


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
	Public Warrants		Private Placement Warrants		Warrant Liabilities		Public Warrants		Private Placement Warrants		Warrant Liabilities
Fair value, beginning of period	$	79,375	$	76,812	$	156,187	$	—	$	—	$	—
Warrant liability acquired	—		—		—		100,750		93,228		193,978
Change in valuation inputs or other assumptions	(25,375)		(20,462)		(45,837)		(46,750)		(36,878)		(83,628)
Fair value, end of period	$	54,000	$	56,350	$	110,350	$	54,000	$	56,350	$	110,350


	September 30, 2022			December 31, 2021
Exercise price	$	11.50		$	11.50
Stock price	$	1.61		$	5.98
Volatility	87.5		%	52.4		%
Term (years)	3.71			4.46
Risk-free interest rate	4.18		%	1.18		%


Consideration Transferred:
Cash consideration (1)	$	697
Share consideration (2)	28,725
Total consideration	$	29,422


Estimated Assets Acquired and Liabilities Assumed:
Assets acquired:
Cash	$	118
Accounts receivable	835
Other current assets	37
Fixed assets	2,826
Software technology	826
Trade name	103
Customer relationships	3,203
Order Backlog	199
Goodwill	21,861
Total assets acquired	30,008

Liabilities assumed:
Accounts payable	$	(460)
Other current liabilities	(8)
Deferred revenue	(96)
Other liabilities	(22)
Total liabilities assumed	(586)

Total net assets acquired	$	29,422


Consideration Transferred:
Cash consideration	$	12,000
Share consideration(1)	19,186
Total consideration	$	31,186


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Allowance, beginning of period	$	7,971	$	719	$	5,169	$	914
Addition to allowance	10,176		2,355		14,867		3,015
Write-offs, net of recoveries	(4,273)		(49)		(6,162)		(904)
Allowance, end of period	$	13,874	$	3,025	$	13,874	$	3,025


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021




Weedmaps for Business and other SaaS solutions	$	12,383	$	11,067	$	38,093	$	30,313
Featured and deal listings	34,644		36,297		116,709		99,590
Subtotal	47,027		47,364		154,802		129,903

Other ad solutions	3,473		3,520		11,444		9,066
Total revenues	$	50,500	$	50,884	$	166,246	$	138,969


	September 30, 2022
	Weighted Average Amortization Period (Years)	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Trade and domain names	14.4	$	7,634	$	(4,542)	$	3,092
Software technology	6.9	7,520		(4,135)		3,385
Customer relationships	11.2	4,783		(721)		4,062
Order backlog	1.0	199		(141)		58
Total intangible assets	10.7	$	20,136	$	(9,539)	$	10,597


	December 31, 2021
	Weighted Average Amortization Period (Years)	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
Trade and domain names	14.3	$	7,532	$	(4,081)	$	3,451
Software technology	7.7	6,691		(3,222)		3,469
Customer relationships	3.4	1,580		(201)		1,379
Total intangible assets	10.4	$	15,803	$	(7,504)	$	8,299


Consideration Transferred:
Cash consideration (1)	$	5,000
Share consideration(2)	10,126
Total consideration	$	15,126


Estimated Assets Acquired:
Software technology	$	249
Trade name	59
Customer relationships	170
Goodwill	14,648
Total asset acquired	$	15,126


	Goodwill
Balance at December 31, 2021	$	45,295
Acquisition of Eyechronic	21,861
Balance at September 30, 2022	$	67,156


Remaining period in 2022 (three months)	$	662
Year ended December 31, 2023	2,135
Year ended December 31, 2024	1,898
Year ended December 31, 2025	1,565
Year ended December 31, 2026	1,318
Thereafter	3,019
	$	10,597


	September 30, 2022		December 31, 2021
Prepaid insurance	$	4,313	$	6,419
Prepaid marketing	2,295		3,272
Prepaid software	3,776		2,088
Other prepaid expenses and other current assets	817		1,828
	$	11,201	$	13,607


						Number of Units
Outstanding Class P Units, December 31, 2021						25,660,529
Cancellations						(48,807)
Exchanged for Class A Common Stock						(10,191,901)
Outstanding, Class P Units, September 30, 2022						15,419,821
Vested, September 30, 2022						14,534,582


	Number of RSUs	Weighted-average Grant Date Fair Value
Non-vested at December 31, 2021	5,829,881	$	10.91
Granted	6,639,434	$	5.50
Vested	(1,775,332)	$	9.44
Forfeited	(1,834,430)	$	9.22
Non-vested at September 30, 2022	8,859,553	$	8.08


	Number of PRSUs	Weighted-average Grant Date Fair Value
Non-vested at December 31, 2021	2,437,500	$	6.40
Granted	—	$	—
Vested	—	$	—
Forfeited	—	$	—
Non-vested at September 30, 2022	2,437,500	$	6.40


	Three Months Ended September 30,				Change
	2022		2021		($)		(%)
	(dollars in thousands)
Revenues	$	50,500	$	50,884	$	(384)	(1)


	September 30, 2022		December 31, 2021
	(in thousands)
Cash	$	34,170	$	67,777
Accounts receivable, net	16,642		17,550
Working capital	24,937		61,134


Exhibit No.						Description
3.1						Certificate of Incorporation of the Company, dated June 15, 2021 (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed on June 21, 2021).
3.2						Amended and Restated Bylaws of the Company, dated June 16, 2021 (incorporated by reference to Exhibit 3.2 to the Current report on Form 8-K filed on June 21, 2021).
31.1						Certification of the Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2						Certification of the Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*						Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS						Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)


#						Indicates management contract or compensatory plan, contract or agreement.
*						The certifications attached as Exhibit 32.1 that accompany this Quarterly Report on Form 10-Q are deemed furnished and not filed with the SEC and are not to be incorporated by reference into any filing of the Company under the Securities Act or the Exchange Act, whether made before or after the date of this Quarterly Report on Form 10-Q, irrespective of any general incorporation language contained in such filing.