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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
10-Q
(Mark One)
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☒
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the quarterly period ended
June 30,
2021
OR
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☐
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
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For the transition period
from to
Commission File Number:
001-40429
Paymentus Holdings, Inc.
(Exact Name of Registrant as Specified in its Charter)
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Delaware
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45-3188251
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( State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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18390 NE
68th
St.
Redmond,
WA
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98052
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(Address of principal executive offices)
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(Zip Code)
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(888)
440-4826
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on which registered
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Class A Common Stock, par value $0.0001 per share
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PAY
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New York Stock Exchange
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Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days.
Yes ☐ No ☒
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files).
Yes ☒ No ☐
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer,
smaller reporting company, or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
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Large accelerated filer
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☐
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Accelerated filer
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☐
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Non-accelerated filer
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☒
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Smaller reporting company
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☐
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Emerging growth company
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☒
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If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange
Act. ☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
As of August 6, 2021, the registrant had
13,880,950
shares of Class A Common Stock, $0.0001 par value per share
and
103,479,239
shares of Class B Common Stock, $0.0001 par value per share,
outstanding.
Table of Contents
iv
Summary of Risk Factors
Our business is subject to numerous risks and uncertainties,
including those highlighted in the section of this report titled
“Risk Factors.” The following is a summary of
the principal risks we face, any of which could
adversely affect our business, operating results, financial
condition or prospects:
Our rapid growth may not be sustainable or indicative of future
growth, and our business could be harmed if we fail to manage our
infrastructure to support future growth.
If we are unsuccessful in establishing, growing or maintaining
partnerships, our ability to compete could be impaired, and our
operating results may suffer.
If we are unable to increase our revenue at a rate sufficient to
offset expected increases in our costs, or if the investments we
make in our business fail to generate the expected benefits, our
business, operating results and financial condition will be harmed
and we may not be able to maintain profitability over the long
term.
Our sales efforts to large enterprises involve considerable time
and expense with long and unpredictable sales cycles.
The COVID-19 pandemic could have a material adverse impact on our
employees, billers, partners, consumers and other key stakeholders,
which could materially and adversely impact our business, operating
results and financial condition.
We are subject to economic and geopolitical risk, the business
cycles and credit risk of our billers and partners and their
consumers, and the overall level of consumer, business and
government spending, which could negatively affect our business,
operating results and financial condition.
The markets in which we participate are competitive, and if we do
not compete effectively, our business, operating results and
financial condition could be harmed.
Our revenue is sensitive to shifts in payment mix and if more
consumers start paying their bills by payment methods with lower
transaction fees, it could materially impact our operating
results.
We expect fluctuations in our operating results, making it
difficult to project future results, and if we fail to meet the
expectations of securities analysts or investors with respect to
our operating results, the market price of our Class A common stock
could decline.
We depend on third-party payment processors to process bill
payments made on our platform and our business, operating results
and reputation could be harmed if we experience service
interruptions related to our payment processors.
We operate in an emerging and evolving market, which may develop
more slowly or differently than we expect. If our market does not
grow as we expect, or if we cannot expand our platform to meet the
demands of this market, our revenue may decline or fail to
grow.
Our risk management efforts may not be effective to prevent
fraudulent activities, which could expose us to material financial
losses and liability and otherwise harm our business.
If we fail to comply with extensive, complex, overlapping and
frequently changing rules, regulations, standards and legal
interpretations, including those related to payments, card network
operations and other financial services, privacy, data protection
and information security, our business could be materially
harmed.
We identified material weaknesses in our internal control over
financial reporting, and if we fail to remediate these material
weaknesses or if we otherwise fail to establish and maintain
effective internal control over financial reporting, our ability to
accurately and timely report our financial results could be
adversely affected.
We may experience software and technology defects, undetected
errors, development delays or other performance problems in our
software and other technology used as part of our platform, which
could damage biller and partner relations, harm our reputation,
result in significant costs to us, decrease our potential
profitability and expose us to substantial liability.
If we fail to adequately obtain, maintain, protect or enforce our
intellectual property and proprietary rights, our competitive
position could be impaired, our reputation could be harmed and we
may lose valuable assets, generate less revenue and incur costly
litigation to protect our rights.
We and our billers and partners and their consumers and other third
parties that use our platform obtain, provide and process a large
amount of sensitive and personal data. Any real or perceived
improper or
5
unauthorized use of, disclosure of or access to such data could
harm our reputation as a trusted brand, as well as have a material
adverse effect on our business, operating results and financial
condition.
The dual class structure of our common stock and our stockholders
agreement have the effect of concentrating voting control with
Accel-KKR, or AKKR, and our founder and chief executive officer,
which limits or precludes your ability to influence corporate
matters for the foreseeable future and may depress the market price
of our Class A common stock.
AKKR controls us and its interests may conflict with ours or yours
in the future.
Our certificate of incorporation contains provisions renouncing our
interest and expectation to participate in certain corporate
opportunities identified by, or presented to, AKKR or its
affiliates, which could create conflicts of interest and have a
material adverse effect on our business, results of operations,
financial condition and prospects if attractive corporate
opportunities are allocated by AKKR to itself, its affiliates or
third parties instead of to us.
6
PART I—FINANCIAL
INFORMATION
Item
1. Financial Statements.
PAYMENTUS
HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited)
(In thousands, except share and per share data)
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June 30,
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December 31,
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2021
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2020
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Assets
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Current assets
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Cash and cash equivalents
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$
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266,390
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$
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46,666
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Accounts and other receivables, net of allowance of
$95 and
$100
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32,967
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28,034
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Income tax receivable
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263
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2,011
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Prepaid expenses and other current assets
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7,234
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3,117
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Total current assets
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306,854
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79,828
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Property and equipment, net of accumulated depreciation and
amortization of $4,347 and
$3,760
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2,056
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1,772
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Capitalized internal-use software development costs, net
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25,366
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20,963
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Intangible assets, net
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195
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296
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Goodwill
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13,216
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13,205
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Operating lease right-of-use assets
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9,506
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8,322
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Deferred tax asset
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144
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270
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Other long-term assets
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3,463
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218
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Total assets
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$
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360,800
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$
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124,874
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Liabilities and Stockholders’ Equity
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Current liabilities
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Accounts payable
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$
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21,705
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$
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16,825
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Accrued liabilities
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12,185
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10,201
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Operating lease liabilities
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2,311
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3,010
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Contract liabilities
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913
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612
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Income tax payable
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—
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463
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Total current liabilities
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37,114
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31,111
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Deferred tax liability
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5,775
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3,499
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Operating leases, net of current portion
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7,440
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5,476
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Finance leases and other finance obligations, net of current
portion
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279
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412
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Total liabilities
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50,608
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40,498
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Commitments and contingencies (Note 8)
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Stockholders’ equity
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Preferred stock, $0.0001 par
value per share,
5,000,000 and
zero shares
authorized at June 30, 2021 and December 31, 2020,
respectively,
none issued
and outstanding at June 30, 2021 and December 31, 2020,
respectively.
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—
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—
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Class A common stock, $0.0001 par
value per share,
883,950,000 and
zero shares
authorized as of June 30, 2021 and December 31, 2020,
respectively;
13,880,950 and
zero shares
issued and outstanding as of June 30, 2021 and December 31, 2020,
respectively
|
|
|
1
|
|
|
|
—
|
|
|
Class B common stock, $0.0001 par
value per share,
111,050,000 and
zero shares
authorized as of June 30, 2021 and December 31, 2020,
respectively;
103,479,239 and
zero shares
issued and outstanding as of June 30, 2021 and December 31, 2020,
respectively
|
|
|
11
|
|
|
|
—
|
|
|
Series A preferred stock, par value $0.01 per
share;
zero and
50,000 shares
authorized as of June 30, 2021 and December 31, 2020,
respectively;
zero and
23,333 shares
issued as of June 30, 2021 and December 31, 2020,
respectively;
zero and
23,013 shares
outstanding as of June 30, 2021 and December 31, 2020,
respectively
|
|
|
—
|
|
|
|
—
|
|
|
Common stock, $0.005 par
value per share;
zero and
150,000,000 shares
authorized as of June 30, 2021 and December 31, 2020,
respectively;
zero and
104,785,651 shares
issued as of June 30, 2021 and December 31, 2020, respectively;
and
zero and
103,479,239 shares
outstanding as of June 30, 2021 and December 31, 2020,
respectively
|
|
|
—
|
|
|
|
517
|
|
|
Treasury stock at cost,
zero and
320 Series
A preferred shares; and
zero and
1,306,412 common
shares as of June 30, 2021 and December 31, 2020,
respectively
|
|
|
—
|
|
|
|
(579
|
)
|
|
Additional paid-in capital
|
|
|
285,164
|
|
|
|
29,175
|
|
|
Accumulated other comprehensive income
|
|
|
168
|
|
|
|
216
|
|
|
Retained earnings
|
|
|
24,848
|
|
|
|
55,047
|
|
|
Total stockholders’ equity
|
|
|
310,192
|
|
|
|
84,376
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
360,800
|
|
|
$
|
124,874
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
7
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS (Unaudited)
(In thousands, except share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Revenue
|
|
$
|
93,495
|
|
|
$
|
71,734
|
|
|
$
|
185,717
|
|
|
$
|
141,327
|
|
|
Cost of revenue
|
|
|
64,567
|
|
|
|
48,332
|
|
|
|
129,242
|
|
|
|
97,148
|
|
|
Gross profit
|
|
|
28,928
|
|
|
|
23,402
|
|
|
|
56,475
|
|
|
|
44,179
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
7,921
|
|
|
|
5,981
|
|
|
|
15,651
|
|
|
|
11,749
|
|
|
Sales and marketing
|
|
|
9,505
|
|
|
|
7,632
|
|
|
|
17,727
|
|
|
|
15,244
|
|
|
General and administrative
|
|
|
7,421
|
|
|
|
3,469
|
|
|
|
14,163
|
|
|
|
7,157
|
|
|
Total operating expenses
|
|
|
24,847
|
|
|
|
17,082
|
|
|
|
47,541
|
|
|
|
34,150
|
|
|
Income from operations
|
|
|
4,081
|
|
|
|
6,320
|
|
|
|
8,934
|
|
|
|
10,029
|
|
|
Other income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense), net
|
|
|
(4
|
)
|
|
|
3
|
|
|
|
(7
|
)
|
|
|
45
|
|
|
Foreign exchange (loss) gain
|
|
|
(1
|
)
|
|
|
(24
|
)
|
|
|
8
|
|
|
|
(90
|
)
|
|
Income before income taxes
|
|
|
4,076
|
|
|
|
6,299
|
|
|
|
8,935
|
|
|
|
9,984
|
|
|
Provision for income taxes
|
|
|
(3,501
|
)
|
|
|
(1,614
|
)
|
|
|
(4,722
|
)
|
|
|
(2,520
|
)
|
|
Net income
|
|
$
|
575
|
|
|
$
|
4,685
|
|
|
$
|
4,213
|
|
|
$
|
7,464
|
|
|
Undeclared dividends on Series A preferred stock
|
|
|
(898
|
)
|
|
|
(1,273
|
)
|
|
|
(2,258
|
)
|
|
|
(2,515
|
)
|
|
Net income (loss) attributable to common stock
|
|
$
|
(323
|
)
|
|
$
|
3,412
|
|
|
$
|
1,955
|
|
|
$
|
4,949
|
|
|
Net income (loss) per share attributable to common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.05
|
|
|
Diluted
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
0.02
|
|
|
$
|
0.05
|
|
|
Weighted-average number of shares used to compute net income per
share attributable to common stock
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
108,970,604
|
|
|
|
103,479,239
|
|
|
|
106,240,091
|
|
|
|
103,479,239
|
|
|
Diluted
|
|
|
108,970,604
|
|
|
|
106,151,678
|
|
|
|
112,244,054
|
|
|
|
106,135,251
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
8
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE INCOME (Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
|
Net income
|
|
$
|
575
|
|
|
$
|
4,685
|
|
|
$
|
4,213
|
|
|
$
|
7,464
|
|
|
Other comprehensive (loss) income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments, net of tax of
$0 and
$0
|
|
(69
|
)
|
|
|
11
|
|
|
|
(48
|
)
|
|
|
(12
|
)
|
|
Comprehensive income
|
|
$
|
506
|
|
|
$
|
4,696
|
|
|
$
|
4,165
|
|
|
$
|
7,452
|
|
The accompanying notes are an integral part of these condensed
consolidated financial statements.
9
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
STOCKHOLDERS’ EQUITY (Unaudited)
(In thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
Series A
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Other
|
|
|
Total
|
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Treasury
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Stockholders’
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Stock
|
|
|
Earnings
|
|
|
Income
|
|
|
Equity
|
|
|
Balances at December 31, 2020
|
|
|
23,013
|
|
|
$
|
—
|
|
|
|
103,479,239
|
|
|
$
|
517
|
|
|
$
|
29,175
|
|
|
$
|
(579
|
)
|
|
$
|
55,047
|
|
|
$
|
216
|
|
|
$
|
84,376
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
563
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
563
|
|
|
Repayment of related party loan
receivable
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
813
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
813
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21
|
|
|
|
21
|
|
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,638
|
|
|
|
—
|
|
|
|
3,638
|
|
|
Balances at March 31, 2021
|
|
|
23,013
|
|
|
$
|
—
|
|
|
|
103,479,239
|
|
|
$
|
517
|
|
|
$
|
30,551
|
|
|
$
|
(579
|
)
|
|
$
|
58,685
|
|
|
$
|
237
|
|
|
$
|
89,411
|
|
|
Issuance of Class A common stock in connection with initial public
offering and private placement, net of offering costs, underwriting
discounts and commissions
|
|
|
—
|
|
|
|
—
|
|
|
|
13,880,950
|
|
|
|
1
|
|
|
|
272,633
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
272,634
|
|
|
Conversion of common stock to Class B common stock in connection
with initial public offering
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(506
|
)
|
|
|
506
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Redemption of Series A preferred stock in connection with initial
public offering
|
|
|
(23,013
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,013
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23,013
|
)
|
|
Payment of dividends on Series A preferred stock in connection with
redemption upon initial public offering
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(34,412
|
)
|
|
|
—
|
|
|
|
(34,412
|
)
|
|
Issuance of warrant
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,498
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,498
|
|
|
Retirement of treasury stock in connection with initial public
offering
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(579
|
)
|
|
|
579
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
568
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
568
|
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(69
|
)
|
|
|
(69
|
)
|
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
575
|
|
|
|
—
|
|
|
|
575
|
|
|
Balances at June 30, 2021
|
|
|
—
|
|
|
$
|
—
|
|
|
|
117,360,189
|
|
|
$
|
12
|
|
|
$
|
285,164
|
|
|
$
|
—
|
|
|
$
|
24,848
|
|
|
$
|
168
|
|
|
$
|
310,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
Series A
|
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
|
|
|
|
Other
|
|
|
Total
|
|
|
|
|
Preferred Stock
|
|
|
Common Stock
|
|
|
Paid-In
|
|
|
Treasury
|
|
|
Retained
|
|
|
Comprehensive
|
|
|
Stockholders’
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Stock
|
|
|
Earnings
|
|
|
Income
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2019
|
|
|
23,013
|
|
|
$
|
—
|
|
|
|
103,479,239
|
|
|
$
|
517
|
|
|
$
|
27,181
|
|
|
$
|
(579
|
)
|
|
$
|
41,336
|
|
|
$
|
149
|
|
|
$
|
68,604
|
|
|
Issuance of shares
|
|
|
—
|
|
|
|
—
|
|
|
|
--
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
475
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
475
|
|
|
Related party loan receivable
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other comprehensive loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(23
|
)
|
|
|
(23
|
)
|
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,779
|
|
|
|
—
|
|
|
|
2,779
|
|
|
Balances at March 31, 2020
|
|
|
23,013
|
|
|
$
|
—
|
|
|
|
103,479,239
|
|
|
$
|
517
|
|
|
$
|
27,656
|
|
|
$
|
(579
|
)
|
|
$
|
44,115
|
|
|
$
|
126
|
|
|
$
|
71,835
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
462
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
462
|
|
|
Related party loan receivable
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Other comprehensive income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
|
11
|
|
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,685
|
|
|
|
—
|
|
|
|
4,685
|
|
|
Balances at June 30, 2020
|
|
|
23,013
|
|
|
$
|
—
|
|
|
|
103,479,239
|
|
|
$
|
517
|
|
|
$
|
28,118
|
|
|
$
|
(579
|
)
|
|
$
|
48,800
|
|
|
$
|
137
|
|
|
$
|
76,993
|
|
The accompanying notes are an integral part of these unaudited
condensed consolidated financial statements.
10
PAYMENTUS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS (Unaudited)
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,213
|
|
|
$
|
7,464
|
|
|
Adjustments to reconcile net income to net cash provided by
operating
activities
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
4,940
|
|
|
|
4,015
|
|
|
Deferred income taxes
|
|
|
2,413
|
|
|
|
889
|
|
|
Stock-based compensation
|
|
|
1,131
|
|
|
|
937
|
|
|
Non-cash lease expense
|
|
|
1,648
|
|
|
|
1,285
|
|
|
Amortization of contract asset
|
|
|
177
|
|
|
|
—
|
|
|
Change in operating assets and liabilities, net of impact of
business
combination
|
|
|
|
|
|
|
|
Accounts and other receivables
|
|
|
(4,944
|
)
|
|
|
(4,269
|
)
|
|
Prepaid expenses and other current and long-term assets
|
|
|
(905
|
)
|
|
|
7
|
|
|
Accounts payable
|
|
|
3,541
|
|
|
|
5,151
|
|
|
Accrued liabilities
|
|
|
543
|
|
|
|
606
|
|
|
Operating lease liabilities
|
|
|
(1,573
|
)
|
|
|
(1,209
|
)
|
|
Contract liabilities
|
|
|
301
|
|
|
|
356
|
|
|
Income taxes receivable, net of payable
|
|
|
1,272
|
|
|
|
684
|
|
|
Net cash provided by operating activities
|
|
|
12,757
|
|
|
|
15,916
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(564
|
)
|
|
|
(309
|
)
|
|
Capitalized internal-use software development costs
|
|
|
(8,736
|
)
|
|
|
(7,185
|
)
|
|
Net cash used in investing activities
|
|
|
(9,300
|
)
|
|
|
(7,494
|
)
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from initial public offering, net of underwriter's
discounts and commissions
|
|
|
224,595
|
|
|
|
—
|
|
|
Proceeds from private placement
|
|
|
50,000
|
|
|
|
—
|
|
|
Redemption of Series A preferred stock
|
|
|
(23,013
|
)
|
|
|
—
|
|
|
Payment of dividends on Series A preferred stock
|
|
|
(34,412
|
)
|
|
|
—
|
|
|
Proceeds from repayment of related party loan
|
|
|
813
|
|
|
|
—
|
|
|
Payments of deferred offering costs
|
|
|
(856
|
)
|
|
|
—
|
|
|
Payments on other financing obligations
|
|
|
(767
|
)
|
|
|
(521
|
)
|
|
Payments on finance leases
|
|
|
(136
|
)
|
|
|
(169
|
)
|
|
Net cash provided by (used in) financing activities
|
|
|
216,224
|
|
|
|
(690
|
)
|
|
Foreign currency effect on cash and cash equivalents
|
|
|
43
|
|
|
|
(23
|
)
|
|
Net increase in cash and cash equivalents
|
|
|
219,724
|
|
|
|
7,709
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
46,666
|
|
|
|
27,427
|
|
|
End of period
|
|
$
|
266,390
|
|
|
$
|
35,136
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
Cash paid for income taxes, net of refunds
|
|
$
|
950
|
|
|
$
|
941
|
|
|
Non-cash investing activities:
|
|
|
|
|
|
|
|
Property and equipment purchases in accounts payable and other
payables
|
|
$
|
202
|
|
|
$
|
62
|
|
|
Non-cash financing activities:
|
|
|
|
|
|
|
|
Prepaid insurance funded through short-term borrowings
|
|
$
|
2,135
|
|
|
$
|
—
|
|
|
Issuance of warrant
|
|
|
4,498
|
|
|
|
—
|
|
|
Property and equipment acquired through finance lease
liabilities
|
|
|
—
|
|
|
|
787
|
|
|
Intangibles acquired through other financing obligations
|
|
|
—
|
|
|
|