MoneyLion (US:ML)2021-11-14 16:00Business Combination - The Business Combination was accounted for as a reverse recapitalization, with Legacy MoneyLion as the accounting acquirer, resulting in no goodwill or intangible assets recorded[8]. - The Business Combination closed on September 22, 2021[9]. - MoneyLion completed its business combination on September 22, 2021, resulting in the merger of Merger Sub with Legacy MoneyLion, which is now a wholly owned subsidiary of MoneyLion Inc.[42]. - The PIPE Financing raised a total of $250 million through the issuance of 25 million shares at $10.00 per share, which was completed concurrently with the business combination[43]. - The merger agreement was consummated on September 22, 2021, with trading of MoneyLion's Class A Common Stock commencing on the NYSE the following day[72]. - The business combination with Fusion resulted in approximately $301,062 in cash proceeds to MoneyLion, net of transaction expenses[71]. - The transaction costs for the business combination were approximately $56,638, with $13,150 representing deferred underwriter fees related to Fusion's initial public offering[71]. - Following the business combination, MoneyLion had 227,147,708 shares of common stock outstanding[70]. - Legacy MoneyLion's redeemable convertible preferred stock converted into 116,264,374 shares of MoneyLion Class A Common Stock upon the Business Combination[115]. Financial Performance - Total revenues for the three months ended September 30, 2021, were $44,220 thousand, a significant increase from $23,117 thousand for the same period in 2020, representing a growth of 91.1%[29]. - Membership subscription revenue was $8,347 thousand for the three months ended September 30, 2021, slightly down from $8,435 thousand in the prior year, indicating a decrease of 1.0%[29]. - Net loss for the three months ended September 30, 2021, was $(20,283) thousand, compared to a net loss of $(5,490) thousand for the same period in 2020, reflecting an increase in losses of 269.4%[29]. - Operating expenses totaled $64,504 thousand for the three months ended September 30, 2021, up from $28,607 thousand in the prior year, marking an increase of 125.5%[29]. - Net income attributable to common shareholders for the three months ended September 30, 2021, was $28,663 thousand, compared to a net loss of $(11,844) thousand in the same period of 2020[29]. - The net loss for the third quarter of 2021 was $132.878 million, compared to a loss of $11.153 million in the same period of 2020[39]. - The company reported a net cash provided by financing activities of $371.352 million, contrasting with a net cash used of $941,000 in the previous year[39]. - The company reported a net loss of $132.88 million for the nine months ended September 30, 2021, compared to a loss of $11.15 million for the same period in 2020[132]. Assets and Liabilities - Total assets as of September 30, 2021, amounted to $468,599,000, compared to $123,643,000 as of December 31, 2020[24][26]. - Total liabilities increased to $112,676,000 as of September 30, 2021, from $92,237,000 as of December 31, 2020[25][26]. - The total stockholders' deficit as of September 30, 2021, was $232.374 million, with an accumulated deficit of $429.855 million[35]. - Cash and restricted cash at the end of the year totaled $299.002 million, up from $20.927 million at the beginning of the year[39]. - The company had net cash used in investing activities of $91.215 million, compared to $23.505 million in the same period of the previous year[39]. - The total other assets increased to $26,913 as of September 30, 2021, compared to $11,702 as of December 31, 2020[101]. Receivables and Allowances - As of September 30, 2021, finance receivables totaled $116,028, an increase from $62,758 as of December 31, 2020, reflecting significant growth[75]. - The allowance for loan losses increased to $16,791 as of September 30, 2021, compared to $8,670 as of December 31, 2020, indicating a rise in expected credit losses[78]. - The provision for losses on receivables increased to $36.644 million in Q3 2021 from $14.587 million in Q3 2020[39]. - The provision for loss on receivables for the three months ended September 30, 2021, was $1,671, compared to $479 for the same period in 2020[82]. - The current credit quality of finance receivables showed that 88.0% were current as of September 30, 2021, compared to 86.4% as of December 31, 2020[83][84]. - The company experienced a significant increase in Instacash receivables, which rose to $46,457 as of September 30, 2021, from $18,888 as of December 31, 2020[76]. Competition and Risks - MoneyLion's ability to maintain its NYSE listing and raise future financing is contingent on various market conditions and compliance with covenants[13]. - The company faces intense competition, which could impact its ability to retain and attract customers[16]. - MoneyLion's operations are subject to risks related to third-party service providers, which could adversely affect its business if these providers fail to meet obligations[17]. - The company has a history of losses and may not achieve profitability in the future[20]. - Forward-looking statements regarding MoneyLion's business strategies and financial performance are subject to risks and uncertainties that could materially affect actual results[12][14]. - The company is currently subject to regulatory examinations and investigations by multiple state and federal agencies, which may impact its financial condition[137][138]. - The company has entered into a memorandum of understanding with the California Department of Financial Protection and Innovation to enhance compliance practices[137]. Accounting and Compliance - The Company operates under U.S. GAAP and has made no significant changes to its accounting policies during the nine months ended September 30, 2021[51]. - The Company is currently evaluating the impact of the new lease accounting standard (ASU 2016-02) effective January 1, 2022, which will require recognition of lease assets and liabilities on the balance sheet[61]. - The Company has adopted new accounting guidance within the same time periods applicable to private companies, as it qualifies as an "emerging growth company" under the JOBS Act[60]. - The company is evaluating the impact of new accounting standards, including ASU 2016-13 and ASU 2019-12, on its financial statements[62][63].