10-K/A 1 rpay-10ka_20191231.htm 10-K/A rpay-10ka_20191231.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K/A

Amendment No. 2 to Form 10-K

 

(Mark One)

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

For the fiscal year ended December 31, 2019

OR

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

Commission File Number 001-38531

 

Repay Holdings Corporation

(Exact name of Registrant as specified in its Charter)

 

 

Delaware

98-1496050

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

3 West Paces Ferry Road,

Suite 200

Atlanta, GA

30305

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (404) 504-7472

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Class A Common Stock, par value $0.0001 per share

 

RPAY

 

The NASDAQ Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES  NO 

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.  YES  NO 

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.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

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 

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the Registrant, based on the closing price of the shares of common stock on The NASDAQ Stock Market on June 30, 2019, was $269,094,000.

As of April 24, 2020, there were 40,401,264 shares of the registrant’s Class A common stock, par value $0.0001 per share, outstanding (which number includes 2,562,645 of unvested restricted stock that have voting rights) and 100 shares of the registrant’s Class V Common Stock, par value of $0.0001 per share, outstanding.  As of Apri1 24, 2020, the holders of such outstanding shares of Class V common stock also hold 29,505,623 units in a subsidiary of the registrant and such units are exchangeable into shares of the registrant’s Class A common stock on a one-for-one basis. 

.

 

 

 

 


EXPLANATORY NOTE

 

The sole purpose of this Amendment No. 2 (this “Amendment”) to the annual report on Form 10-K of Repay Holdings Corporation. (“we”, “us”, “our”) for the year ended December 31, 2019 and filed with the Securities and Exchange Commission on March 16, 2020, as amended on April 17, 2020 (the “Form 10-K”), is to correct the years covered by the audit report of our current auditor, Grant Thornton LLP, and to furnish the audit report of our former auditor, Warren Averett, LLC, on our financial statements for the year ended December 31, 2017, which audit report was erroneously omitted from Item 8 of the Form 10-K. 

 

Other than in Item 8 and the updated exhibit list included in this Amendment, no other changes have been made to the Form 10-K. This Amendment continues to speak as of the filing date of the Form 10-K, does not reflect events that may have occurred subsequent to that date, and does not modify or update any related disclosures made in the Form 10-K.

 

We have included new certifications of our principal executive officer and principal financial officer with this Amendment pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002.

 


2


ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

Index to the Financial Statements

 

Reports of Independent Registered Public Accounting Firms

4

 

 

Consolidated Balance Sheets as of December 31, 2019 and 2018

6

 

 

Consolidated Statements of Operations for the periods ended December 31, 2019 and July 10, 2019 and the years ended December 31, 2018 and 2017

7

 

 

Consolidated Statements of Comprehensive Income for the periods ended December 31, 2019 and July 10, 2019 and the years ended December 31, 2018 and 2017

8

 

 

Consolidated Statements of Stockholders’ Equity for the periods ended December 31, 2019 and July 10, 2019 and the years ended December 31, 2018 and 2017

9

 

 

Consolidated Statements of Cash Flows for the periods ended December 31, 2019 and July 10, 2019 and the years ended December 31, 2018 and 2017

10

 

 

Notes to Consolidated Financial Statements

12

 


3


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

 

 

 

 

Board of Directors and Stockholders

Repay Holdings Corporation

 

Opinion on the financial statements

 

We have audited the accompanying consolidated balance sheet of Repay Holdings Corporation (a Delaware corporation) and subsidiaries (the “Company” or “Successor”) as of December 31, 2019 and consolidated balance sheet of Hawk Parent Holdings LLC (“Predecessor”) as of December 31, 2018, the related consolidated statements operations, comprehensive income, changes in equity, and cash flows for the periods from July 11, 2019 to December 31, 2019 (Successor), January 1, 2019 to July 10, 2019 (Predecessor), and the year ended December 31, 2018 (Predecessor), and the related notes (collectively referred to as the “financial statements”).  In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and the results of its operations and its cash flows for the period from July 11, 2019 to December 31, 2019 and the financial position of the Predecessor as of December 31, 2018, and the results of its operations and its cash flows for the period from January 1, 2019 to July 10, 2019, and the year ended December 31, 2018, in conformity with accounting principles generally accepted in the United States of America.  

Change in accounting principle

 

As discussed in Note 3 to the financial statements, the Company and the Predecessor have changed their method of accounting for revenue in 2019 due to the adoption of ASU 2014‑09, Revenue from Contracts with Customers (ASC Topic 606).

Basis for opinion

 

These financial statements are the responsibility of the Company’s and Predecessor’s management.  Our responsibility is to express an opinion on the Company’s and Predecessor’s financial statements based on our audits.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.  The Company and Predecessor are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting.  As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s or Predecessor’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.  We believe that our audits provide a reasonable basis for our opinion.

/s/ GRANT THORNTON LLP

We have served as the Company’s auditor since 2018.

Philadelphia, Pennsylvania

March 16, 2020


4


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Members
of Hawk Parent Holdings LLC

Atlanta, Georgia

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated statements of operations, members’ equity, and cash flows of Hawk Parent Holdings LLC for the year ended December 31, 2017. In our opinion, these consolidated financial statements present fairly, in all material respects, the results of operations and cash flows for the year ended December 31, 2017, in conformity with accounting principles generally accepted in the United States of America.

 

Basis for Opinion

 

These consolidated financial statements are the responsibility of Hawk Parent Holdings LLC’s management. Our responsibility is to express an opinion on Hawk Parent Holdings LLC’s consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to Hawk Parent Holdings LLC. in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provide a reasonable basis for our opinion.

 

 

/s/ Warren Averett, LLC

Birmingham, Alabama

November 28, 2018

5


REPAY HOLDINGS CORPORATION

Consolidated Balance Sheets

as of

 

 

December 31,

2019

 

 

 

December 31,

2018

 

 

 

(Successor)

 

 

 

(Predecessor)

 

Assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

24,617,996

 

 

 

$

13,285,357

 

Accounts receivable

 

 

14,068,477

 

 

 

 

5,979,247

 

Related party receivable

 

 

563,084

 

 

 

 

 

Prepaid expenses and other

 

 

4,632,965

 

 

 

 

817,212

 

Total current assets

 

 

43,882,522

 

 

 

 

20,081,816

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

1,610,652

 

 

 

 

1,247,149

 

Restricted cash

 

 

13,283,121

 

 

 

 

9,976,701

 

Customer relationships, net of accumulated amortization

 

 

247,589,240

 

 

 

 

62,528,880

 

Software, net of amortization

 

 

61,219,143

 

 

 

 

5,170,748

 

Other intangible assets, net of accumulated amortization

 

 

24,241,505

 

 

 

 

523,133

 

Goodwill

 

 

389,660,519

 

 

 

 

119,529,202

 

Other assets

 

 

555,449

 

 

 

 

 

Total noncurrent assets

 

 

738,159,629

 

 

 

 

198,975,813

 

Total assets

 

$

782,042,151

 

 

 

$

219,057,629

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

9,586,001

 

 

 

$

2,909,378

 

Related party payable

 

 

14,571,266

 

 

 

 

 

Accrued expenses

 

 

15,965,683

 

 

 

 

12,837,826

 

Current maturities of long-term debt

 

 

5,500,000

 

 

 

 

4,900,000

 

Current tax receivable agreement

 

 

6,336,487

 

 

 

 

 

Total current liabilities

 

 

51,959,437

 

 

 

 

20,647,204

 

 

 

 

 

 

 

 

 

 

 

Long-term debt, net of current maturities

 

 

197,942,705

 

 

 

 

85,815,204

 

Line of credit

 

 

10,000,000

 

 

 

 

3,500,000

 

Tax receivable agreement

 

 

60,839,739

 

 

 

 

 

Deferred tax liability

 

 

768,335

 

 

 

 

 

Other liabilities

 

 

16,864

 

 

 

 

16,864

 

Total noncurrent liabilities

 

 

269,567,643

 

 

 

 

89,332,068

 

Total liabilities

 

$

321,527,080

 

 

 

$

109,979,272

 

 

 

 

 

 

 

 

 

 

 

Commitment and contingencies (Note 12)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Members' Equity

 

 

 

 

 

 

$

109,078,357

 

Class A common stock, $0.0001 par value; 2,000,000,000 shares authorized

   and 37,530,568 issued and outstanding as of December 31, 2019

 

$

3,753

 

 

 

 

 

 

Class V common stock, $0.0001 par value; 1,000 shares authorized and 100

   shares issued and outstanding as of December 31, 2019

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

307,914,346

 

 

 

 

 

 

Accumulated other comprehensive income

 

 

313,397

 

 

 

 

 

 

Accumulated deficit

 

 

(53,878,460

)

 

 

 

 

 

Total stockholders' equity

 

$

254,353,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to noncontrolling interests

 

 

206,162,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity and members' equity

 

$

782,042,151

 

 

 

$

219,057,629

 

 

The accompanying notes are an integral part of these consolidated financial statements.

6


REPAY HOLDINGS CORPORATION

Consolidated Statements of Operations

 

 

 

From

July 11,

2019 to

December 31,

2019

 

 

 

From

January 1,

2019

to July 10,

2019

 

 

Year Ended

December 31,

2018

 

 

Year Ended

December 31,

2017

 

 

 

(Successor)

 

 

 

(Predecessor)

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Processing and service fees

 

$

57,560,470

 

 

 

$

47,042,917

 

 

$

82,186,411

 

 

$

57,062,810

 

Interchange and network fees

 

 

 

 

 

 

 

 

 

47,826,529

 

 

 

36,888,311

 

Total Revenue

 

 

57,560,470

 

 

 

 

47,042,917

 

 

 

130,012,940

 

 

 

93,951,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interchange and network fees

 

 

 

 

 

 

 

 

 

47,826,529

 

 

 

36,888,311

 

Other costs of services

 

 

15,656,730

 

 

 

 

10,216,079

 

 

 

27,159,763

 

 

 

20,713,025

 

Selling general and administrative

 

 

45,758,335

 

 

 

 

51,201,322

 

 

 

29,097,302

 

 

 

14,604,261

 

Depreciation and amortization

 

 

23,756,888

 

 

 

 

6,222,917

 

 

 

10,421,000

 

 

 

7,456,438

 

Change in fair value of contingent consideration

 

 

 

 

 

 

 

 

 

(1,103,012

)

 

 

(2,100,000

)

Total operating expenses

 

 

85,171,953

 

 

 

 

67,640,318

 

 

 

113,401,582

 

 

 

77,562,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

 

(27,611,483

)

 

 

 

(20,597,401

)

 

 

16,611,358

 

 

 

16,389,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(5,921,893

)

 

 

 

(3,145,167

)

 

 

(6,072,837

)

 

 

(5,706,232

)

Change in fair value of tax receivable liability

 

 

(1,638,465

)

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

(1,379,824

)

 

 

 

38

 

 

 

(1,078

)

 

 

(1,234,610

)

Total other income (expenses)

 

 

(8,940,182

)

 

 

 

(3,145,129

)

 

 

(6,073,915

)

 

 

(6,940,842

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income tax expense

 

 

(36,551,665

)

 

 

 

(23,742,530

)

 

 

10,537,443

 

 

 

9,448,244

 

Income tax benefit

 

 

4,990,989

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(31,560,676

)

 

 

$

(23,742,530

)

 

$

10,537,443

 

 

$

9,448,244

 

Less: Net income (loss) attributable to noncontrolling

   interests

 

$

(15,271,043

)

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to the Company

 

$

(16,289,633

)

 

 

$

(23,742,530

)

 

$

10,537,443

 

 

$

9,448,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per Class A share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.46

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

35,731,220

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


7


REPAY HOLDINGS CORPORATION

Consolidated Statements of Comprehensive Income

 

 

 

From

July 11,

2019 to

December 31,

2019

 

 

 

From

January 1,

2019 to

July 10,

2019

 

 

Year ended

December 31,

2018

 

 

Year ended

December 31,

2017

 

 

 

(Successor)

 

 

 

(Predecessor)

 

Net income (loss)

 

$

(31,560,676

)

 

 

$

(23,742,530

)

 

$

10,537,443

 

 

$

9,448,244

 

Other comprehensive income, before tax

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of designated cash flow hedges

 

 

555,449

 

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income, before tax

 

 

555,449

 

 

 

 

 

 

 

 

 

 

 

Income tax related to items of other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax expense on change in fair value of designated cash flow hedges

 

 

(54,303

)

 

 

 

 

 

 

 

 

 

 

Total income tax expense on related to items of other comprehensive income

 

 

(54,303

)

 

 

 

 

 

 

 

 

 

 

Total other comprehensive income, net of tax

 

 

501,146

 

 

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss)

 

$

(31,059,530

)

 

 

$

(23,742,530

)

 

$

10,537,443

 

 

$

9,448,244

 

Less: Comprehensive income (loss) attributable to

   noncontrolling interests

 

 

(15,027,371

)

 

 

 

 

 

 

 

 

 

 

Comprehensive income (loss) attributable to the Company

 

$

(16,032,159

)

 

 

$

(23,742,530

)

 

$

10,537,443

 

 

$

9,448,244

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

8


REPAY HOLDINGS CORPORATION

Consolidated Statements of Changes in Equity

 

 

 

Total Equity

 

 

 

(Predecessor)

 

Balance at January 1, 2017

 

$

99,460,583

 

Net income

 

 

9,448,244

 

Contributions by members

 

 

 

Stock based compensation

 

 

622,411

 

Distributions to members

 

 

(5,479,355

)

Balance at December 31, 2017

 

$

104,051,883

 

Net income

 

 

10,537,443

 

Contributions by members

 

 

 

Stock based compensation

 

 

796,967

 

Distributions to members

 

 

(6,307,936

)

Balance at December 31, 2018

 

$

109,078,357

 

Net income

 

 

(23,742,530

)

Contributions by members

 

 

 

Stock based compensation

 

 

908,978

 

Distributions to members

 

 

(6,904,991

)

Balance at July 10, 2019

 

$

79,339,814

 

 

 

 

Class A Common

Stock

 

 

Class V Common

Stock

 

 

Additional

Paid-In

 

 

Accumulated

 

 

Accumulated Other Comprehensive

 

 

Total

Stockholders'

 

 

Noncontrolling

 

 

 

Shares

 

 

Amount

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Deficit

 

 

Income

 

 

Equity

 

 

Interests

 

Balance at July 11, 2019

 

 

33,430,259

 

 

$

3,343

 

 

 

100

 

 

$

 

 

$

290,408,807

 

 

$

(37,588,827

)

 

$

 

 

$

252,823,323

 

 

$

221,375,364

 

Release of Founder Shares

 

 

2,965,000

 

 

 

297

 

 

 

 

 

 

 

 

 

 

(297

)

 

 

 

 

 

 

 

 

 

 

 

 

Release of share awards vested under

   2019 Plan

 

 

1,135,291

 

 

 

114

 

 

 

 

 

 

 

 

 

 

(114

)

 

 

 

 

 

 

 

 

 

 

 

 

Treasury shares repurchased

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,507,544

)

 

 

 

 

 

 

 

 

 

 

(4,507,544

)

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

22,013,287

 

 

 

 

 

 

 

 

 

22,013,287

 

 

 

 

Warrant exercise

 

 

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

207

 

 

 

 

 

 

 

 

 

 

 

207

 

 

 

 

 

Tax distribution from Hawk Parent

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(185,957

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(16,289,633

)

 

 

 

 

 

(16,289,633

)

 

 

(15,271,043

)

Accumulated other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

313,397

 

 

 

313,397

 

 

 

243,671

 

Balance at December 31, 2019

 

 

37,530,568

 

 

$

3,753

 

 

 

100

 

 

$

 

 

$

307,914,346

 

 

$

(53,878,460

)

 

$

313,397

 

 

$

254,353,036

 

 

$

206,162,035

 

(Successor)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

 

9


REPAY HOLDINGS CORPORATION

Consolidated Statements of Cash Flows

 

 

 

July 11,

2019 to

December 31,

2019

 

 

 

January 1,

2019 to

July 10,

2019

 

 

Period

Ended

December 31,

2018

 

 

Period

Ended

December 31,

2017

 

 

 

(Successor)

 

 

 

(Predecessor)

 

 

(Predecessor)

 

 

(Predecessor)

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(31,560,676

)

 

 

$

(23,742,530

)

 

$

10,537,443

 

 

$

9,448,244

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net income (loss) to net cash provided (used) by

   operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

23,756,888

 

 

 

 

6,222,917

 

 

 

10,421,000

 

 

 

7,456,438

 

Stock based compensation

 

 

22,013,287

 

 

 

 

908,978

 

 

 

796,967

 

 

 

622,411

 

Amortization of debt issuance costs

 

 

570,671

 

 

 

 

215,658

 

 

 

407,403

 

 

 

239,190

 

Loss on unamortized deferred loan costs

 

 

 

 

 

 

 

 

 

 

 

 

753,958

 

Loss on disposal of property and equipment

 

 

 

 

 

 

 

 

 

16,827

 

 

 

7,970

 

Fair value change in tax receivable liability

 

 

1,638,465

 

 

 

 

 

 

 

 

 

 

 

Gain on change in contingent consideration

 

 

 

 

 

 

 

 

 

(1,103,012

)

 

 

 

Provision for (reduction in) bad debt expense

 

 

 

 

 

 

 

 

 

 

 

 

(2,900

)

Deferred tax expense

 

 

(4,990,989

)

 

 

 

 

 

 

 

 

 

 

Change in accounts receivable

 

 

779,008

 

 

 

 

(4,614,620

)

 

 

(1,534,285

)

 

 

(1,049,161

)

Change in related party receivable

 

 

(563,084

)

 

 

 

 

 

 

 

 

 

 

Change in prepaid expenses and other

 

 

(3,579,300

)

 

 

 

(73,533

)

 

 

(394,127

)

 

 

(95,410

)

Change in accounts payable

 

 

2,656,630

 

 

 

 

1,297,035

 

 

 

1,502,090

 

 

 

90,322

 

Change in related party payable

 

 

14,571,266

 

 

 

 

 

 

 

 

 

 

 

Change in accrued expenses and other

 

 

(12,356,519

)

 

 

 

28,136,310

 

 

 

3,526,470

 

 

 

3,672,100

 

Net cash provided by operating activities

 

 

12,935,647

 

 

 

 

8,350,215

 

 

 

24,176,776

 

 

 

21,143,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(498,513

)

 

 

 

(203,026

)

 

 

(913,498

)

 

 

(448,601

)

Purchases of software

 

 

(3,375,751

)

 

 

 

(3,842,744

)

 

 

(4,884,457

)

 

 

(2,988,875

)

Acquisition of Hawk Parent, net of cash and restricted cash acquired

 

 

(242,599,551

)

 

 

 

 

 

 

 

 

 

 

Acquisition of TriSource, net of cash and restricted cash acquired

 

 

(59,160,005

)

 

 

 

 

 

 

 

 

 

 

Acquisition of APS Payments, net of cash and restricted cash acquired

 

 

(29,450,022

)

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

(335,083,842

)

 

 

 

(4,045,770

)

 

 

(5,797,955

)

 

 

(3,437,476

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in line of credit

 

 

6,500,000