SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

On March 1, 2022, the Company reached an agreement, with settlement on March 11, 2022, to reacquire 1,169,963 Private Warrants at a price of $1.69 per warrant, or a total cost of $2.0 million, from Ms. Sherry Sidhu and Mr. Samvir Sidhu, who are immediate family members of our CEO. The transaction price was established based on the range of market prices during the repurchase conversations and was approved by the Company’s Audit Committee.

On April 27, 2022, our current Partner Bank, Customers Bank, which is a related party of the Company, indicated in a public filing that it will not renew the current Deposit Processing Services Agreement (the “Deposit Servicing Agreement”) with the Company when it expires on December 31, 2022. This creates a material uncertainty in regard to the Company’s financial condition, liquidity, and future results of operations. The Company is considering multiple strategic alternatives in the event the Deposit Servicing Agreement is not renewed, including internalizing services upon closing of the previously announced merger with First Sound Bank, partnering with other banks, utilizing a brokered deposit model, or entering into discussions with our current Partner Bank about a new Deposit Servicing Agreement after December 31, 2022 at then current market rates and conditions. Management believes its cash position as of May 10, 2022, and expected cash flow from operations through December 31, 2022, will allow the Company to meet its obligations as they come due through May 10, 2023, or twelve months from the date the consolidated financial statements included in this report are issued. Should additional liquidity be necessary, the Company could consider equity or debt financing, but there are no assurances that additional capital would be available or on terms that are acceptable to us. The Company’s inability to execute on any of the aforementioned alternatives could have a material adverse effect on the Company’s results of future operations, financial position, and liquidity.