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 |
(State or other jurisdiction of incorporation) | (I.R.S Employer Identification No.) |
(Address of principal executive offices) | (zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | Accelerated filer | ||||||||||
☒ | Smaller reporting company | ||||||||||
Emerging growth company |
Page | |||||||||||
Part I – Financial Information | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Part II – Other Information | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(unaudited) | (audited) | ||||||||||
(In thousands except share data) | |||||||||||
ASSETS | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Contract assets | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Operating lease asset | |||||||||||
Property and equipment, net | |||||||||||
Convertible note receivable | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Liabilities | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expense and other current liabilities | |||||||||||
Current maturities of long-term debt | |||||||||||
Deferred payroll tax credits | |||||||||||
Deferred revenue | |||||||||||
Operating lease liability - current | |||||||||||
Total current liabilities | |||||||||||
Notes payable | |||||||||||
Operating lease liability - non-current | |||||||||||
Warrant liabilities | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and Contingencies | |||||||||||
Stockholders’ Deficiency | |||||||||||
Common stock par value $ | |||||||||||
Additional paid-in-capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders’ deficit | $ | ( | $ | ( | |||||||
Total liabilities and stockholders’ deficit | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
(revised) | ||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||
Revenues | $ | $ | ||||||||||||
Cost of revenues | ||||||||||||||
Gross profit | ||||||||||||||
Operating expenses | ||||||||||||||
Selling, servicing and marketing | ||||||||||||||
Technology and software development | ||||||||||||||
General and administrative | ||||||||||||||
Total operating expenses | ||||||||||||||
Loss from operations | ( | ( | ||||||||||||
Interest income | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Change in fair value of warrants | ( | |||||||||||||
Loss before income tax | ( | ( | ||||||||||||
Income tax expense | ||||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Net loss per common share: | ||||||||||||||
Basic and diluted | $ | ( | $ | ( | ||||||||||
Weighted-average common shares outstanding | ||||||||||||||
Basic and diluted | ||||||||||||||
Common Stock | Additional Paid-in- | Accumulated | ||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | ( | ||||||||||||||||||||||||||
Stock-based compensation | — | — | — | |||||||||||||||||||||||||||||
Exercise of stock options | — | — | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | |||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | ( |
Common Stock | Additional Paid-in- | Accumulated | ||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Total | ||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Stock-based compensation | — | — | — | |||||||||||||||||||||||||||||
Exercise of stock options | — | — | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | ( | |||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | $ | $ | ( | $ |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
(In thousands) | ||||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | ( | $ | ( | ||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Discount amortization on convertible note | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Bad debt expense | ||||||||||||||
Accrued interest on convertible notes | ||||||||||||||
Amortization of operating lease right of use assets | ||||||||||||||
Change in fair value of warrants | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | ( | |||||||||||||
Prepaid expenses and other current assets | ( | |||||||||||||
Contract assets | ||||||||||||||
Accounts payable and other liabilities | ||||||||||||||
Operating lease liabilities | ( | |||||||||||||
Deferred payroll tax credits | ||||||||||||||
Deferred revenue | ( | |||||||||||||
Net cash provided by (used in) operating activities | ( | |||||||||||||
Cash flows from investing activities: | ||||||||||||||
Purchase of convertible note | ( | |||||||||||||
Purchases of property and equipment | ( | ( | ||||||||||||
Net cash used in investing activities | ( | ( | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from convertible notes | ||||||||||||||
Repayment of convertible notes | ( | |||||||||||||
Proceeds from exercise of stock options | ||||||||||||||
Net cash (used in) provided by financing activities | ( | |||||||||||||
Net increase (decrease) in cash and cash equivalents | ( | $ | ||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
Supplemental cash flows disclosures | ||||||||||||||
Interest paid | $ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Accounts receivable | $ | $ | ||||||||||||
Unbilled receivables | ||||||||||||||
Total Receivables | ||||||||||||||
Less allowance for doubtful accounts | ( | ( | ||||||||||||
Accounts receivable, net | $ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Prepaid insurance | $ | $ | ||||||||||||
Other prepaid expenses | ||||||||||||||
Deposits | ||||||||||||||
$ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Computer equipment | $ | $ | ||||||||||||
Furniture & Fixtures | ||||||||||||||
Data warehouse | ||||||||||||||
Software | ||||||||||||||
Total Cost | ||||||||||||||
Less accumulated depreciation and amortization | ( | ( | ||||||||||||
Property and Equipment | $ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Accrued wages, commission and bonus | $ | $ | ||||||||||||
Accrued expenses | ||||||||||||||
Deferred financial advisory fees | ||||||||||||||
Other liabilities | ||||||||||||||
$ | $ |
Amount available after paying TCAC redeeming stockholders | $ | |||||||
Proceeds from convertible notes | ||||||||
Proceeds from PIPE Financing | ||||||||
TCAC operating account | ||||||||
Gross proceeds available at closing | ||||||||
Expenses paid at closing | ( | |||||||
Net cash to Legacy SpringBig at closing | $ | |||||||
Post closing expense (cash paid or accrued for expenses by Legacy SpringBig) | ( | |||||||
Net cash after closing | $ |
TCAC non-redeeming shareholders | ||||||||
PIPE Investors | ||||||||
TCAC sponsor shareholders | ||||||||
Legacy SpringBig shareholders | ||||||||
Issued and outstanding |
QUARTER ENDING | ||||||||||||||||||||
March 31, | March 31, | |||||||||||||||||||
2022 | 2022 | |||||||||||||||||||
As reported | Adjustment | Revised | ||||||||||||||||||
Revenues | $ | $ | ( | $ | ||||||||||||||||
Cost of revenues | ( | ( | ||||||||||||||||||
Gross profit | $ | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue | ||||||||||||||
Brand revenue | $ | $ | ||||||||||||
Retail revenue | ||||||||||||||
Total Revenue | $ | $ |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Brand revenue | ||||||||||||||
United States | $ | $ | ||||||||||||
Canada | ||||||||||||||
Retail revenue | ||||||||||||||
United States | ||||||||||||||
Canada | ||||||||||||||
$ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Deferred sales commissions | $ | $ | ||||||||||||
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Contract assets at start of the period | $ | $ | ||||||||||||
Expense deferred during the period | ||||||||||||||
(less) amounts expensed during the period | ( | ( | ||||||||||||
Contract assets at end of the period | $ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Deferred retail revenues | $ | $ | ||||||||||||
Deferred brands revenues | ||||||||||||||
Contract liabilities | $ | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Contract liabilities at start of the period | $ | $ | ||||||||||||
Amounts invoiced during the period | ||||||||||||||
Less revenue recognized during the period | ( | ( | ||||||||||||
Contract liabilities at end of the period | $ | $ |
Options Outstanding | Options Vested and Exercisable | |||||||||||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price (Per Share) | Number of Options | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price (Per Share) | ||||||||||||||||||||||||||||
Outstanding Balance, January 1, 2023 | $ | $ | ||||||||||||||||||||||||||||||
Options granted | ||||||||||||||||||||||||||||||||
Options exercised | ( | $ | ||||||||||||||||||||||||||||||
Options forfeited | ( | $ | ||||||||||||||||||||||||||||||
Options cancelled | $ | |||||||||||||||||||||||||||||||
Outstanding Balance, March 31, 2023 | $ | $ | ||||||||||||||||||||||||||||||
Restricted Stock Units Outstanding | ||||||||||||||||||||
Number of RSUs | Weighted Average Fair Value (Per Share) | Weighted Average Vesting (Years) | ||||||||||||||||||
Outstanding Balance, January 1, 2022 | — | |||||||||||||||||||
RSUs granted | ||||||||||||||||||||
RSUs forfeited | ( | |||||||||||||||||||
Outstanding Balance, December 31, 2022 | ||||||||||||||||||||
RSUs granted | ||||||||||||||||||||
Outstanding Balance, March 31, 2023 | $ |
March 31, | December 31, | |||||||||||||
2023 | 2022 | |||||||||||||
Balance Sheet | ||||||||||||||
Assets: | ||||||||||||||
Right of Use Asset - Operating Lease | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Current | ||||||||||||||
Non-current | ||||||||||||||
Total Operating Lease Liability | $ | $ |
Three Months Ended March 31, | ||||||||
Other information | 2023 | |||||||
Operating lease cost | $ | |||||||
Operating cash flows paid to operating leases | $ | |||||||
Right-of-use assets in exchange for new operating lease liabilities | $ | |||||||
Weighted-average remaining lease term — operating leases (months) | ||||||||
Weighted-average discount rate — operating leases |
Fiscal Year: | Operating Leases | |||||||
2023 | $ | |||||||
2024 | ||||||||
Total lease payments | ||||||||
Less Imputed Interest | ( | |||||||
Present value of lease liabilities | $ |
Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Public warrants | ||||||||||||||||||||||||||
$ | $ | $ | $ |
Warrants | ||||||||
Balance, January 1, 2023 | $ | |||||||
Change in fair value | ||||||||
Balance, March 31, 2023 | $ | |||||||
Changes in fair value included in earnings for the period relating to liabilities held at March 31, 2023 | $ |
Legacy SpringBig | Conversion Rate | SpringBig | ||||||||||||||||||
Series B Preferred | ||||||||||||||||||||
Series A Preferred | ||||||||||||||||||||
Series Seed Preferred | ||||||||||||||||||||
Common Stock | ||||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Loss per share: | |||||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | ( | $ | ( | |||||||||||||
Denominator | |||||||||||||||||
Weighted-average common shares outstanding | |||||||||||||||||
Basic and diluted | |||||||||||||||||
Net loss per common share | |||||||||||||||||
Basic and diluted | $ | ( | $ | ( | |||||||||||||
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Shares unvested and subject to exercise of stock options | ||||||||||||||
Shares subject to outstanding common stock options | ||||||||||||||
Shares subject to convertible notes stock conversion | ||||||||||||||
Shares subject to warrants stock conversion | ||||||||||||||
Shares subject to contingent earn out | ||||||||||||||
Restricted stock units |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Revenue | $ | 7,157 | $ | 6,173 | ||||||||||
Net loss | (2,262) | (2,866) | ||||||||||||
Adjusted EBITDA | (1,331) | (2,504) | ||||||||||||
Number of retail clients | 1,366 | 1,327 | ||||||||||||
Net revenue retention | 100 | % | 106 | % | ||||||||||
Number of messages (million) | 488 | 443 |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net loss | $ | (2,262) | $ | (2,866) | ||||||||||
Interest income | (10) | — | ||||||||||||
Interest expense | 391 | 89 | ||||||||||||
Depreciation expense | 66 | 59 | ||||||||||||
EBITDA | (1,815) | (2,718) | ||||||||||||
Stock-based compensation* | 162 | 181 | ||||||||||||
Bad debt expense | 169 | 33 | ||||||||||||
Change in fair value of warrants | 153 | — | ||||||||||||
Adjusted EBITDA | $ | (1,331) | $ | (2,504) |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2023 | 2022 | Increase (decrease) | % | |||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||
Revenue | $ | 7,157 | $ | 6,173 | $ | 984 | 16 | % | ||||||||||||||||||
Cost of revenue | 1,350 | 1,652 | (302) | (18) | % | |||||||||||||||||||||
Gross profit | 5,807 | 4,521 | 1,286 | 28 | % | |||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Selling, servicing and marketing | 2,478 | 2,943 | (465) | (16) | % | |||||||||||||||||||||
Technology and software development | 2,300 | 2,637 | (337) | (13) | % | |||||||||||||||||||||
General and administrative | 2,757 | 1,718 | 1,039 | 60 | % | |||||||||||||||||||||
Total operating expenses | 7,535 | 7,298 | 237 | 3 | % | |||||||||||||||||||||
Loss from operations | (1,728) | (2,777) | 1,049 | (38) | % | |||||||||||||||||||||
Interest income | 10 | — | 10 | nm | ||||||||||||||||||||||
Interest expense | (391) | (89) | (302) | nm | ||||||||||||||||||||||
Change in fair value of warrants | (153) | — | (153) | nm | ||||||||||||||||||||||
Loss before taxes | (2,262) | (2,866) | 604 | (21) | % | |||||||||||||||||||||
Provision for income taxes | — | — | — | — | ||||||||||||||||||||||
Loss after taxes | $ | (2,262) | $ | (2,866) | $ | 604 | (21) | % |
March 31, 2023 | December 31, 2022 | |||||||||||||
Cash and cash equivalents | $ | 2,569 | $ | 3,546 | ||||||||||
Accounts receivable, net | 3,168 | 2,889 | ||||||||||||
Working capital | (4,685) | (1,544) |
Three Months Ended March 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Statement of Cash Flows Data: | ||||||||||||||
Total cash (used in) provided by: | ||||||||||||||
Operating activities | $ | 379 | $ | (2,399) | ||||||||||
Investing activities | (12) | (73) | ||||||||||||
Financing activities | (1,344) | 7,006 | ||||||||||||
Increase (decrease) in cash and cash equivalents | $ | (977) | $ | 4,534 |
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date | Filed/Furnished Herewith | SEC File # | ||||||||||||||
3.1 | 10-K | 3.1 | March 28, 2023 | 001-40049 | ||||||||||||||||
3.2 | 10-K | 3.2 | March 28, 2023 | 001-40049 | ||||||||||||||||
32.1 | ** | |||||||||||||||||||
32.2 | ** | |||||||||||||||||||
33.1 | ** | |||||||||||||||||||
33.2 | ** | |||||||||||||||||||
101.INS | XBRL Instance Document | * | ||||||||||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | * | ||||||||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | * | ||||||||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | * | ||||||||||||||||||
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document | * | ||||||||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | * |
By: | /s/ Jeffrey Harris | ||||||||||
Name: | Jeffrey Harris | ||||||||||
Title: | Chief Executive Officer | ||||||||||
(Principal Executive Officer) | |||||||||||
Date: | May 04, 2023 | ||||||||||
By: | /s/ Paul Sykes | ||||||||||
Name: | Paul Sykes | ||||||||||
Title: | Chief Financial Officer | ||||||||||
(Principal Financial Officer and Principal Accounting Officer) | |||||||||||
Date: | May 04, 2023 |
/s/ Jeffrey Harris | ||
Jeffrey Harris | ||
Chief Executive Officer |
/s/ Paul Sykes | ||
Paul Sykes | ||
Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 14, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||
Common stock, par or stated value per share (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 | 300,000,000 | |
Common stock, shares, issued (in shares) | 26,940,841 | 26,659,711 | 25,290,270 | 17,884,588 |
Common stock, shares, outstanding (in shares) | 26,940,841 | 26,659,711 | 25,290,270 | 17,884,588 |
DESCRIPTION OF BUSINESS |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS SpringBig Holdings, Inc. and its wholly-owned subsidiaries (the “Company,” “we,” “us,” or “SpringBig”) developed a software platform that provides marketing and customer engagement services to cannabis dispensaries and brands throughout the United States and Canada. The Company allows merchants to provide loyalty plans and rewards directly to consumers through an internet portal and mobile applications. Our operational headquarters are in Boca Raton, Florida, with additional offices located in the United States and Canada. The Company has one direct wholly-owned subsidiary, SpringBig, Inc. On June 14, 2022 (the “Closing Date”), SpringBig Holdings, Inc. (formerly known as Tuatara Capital Acquisition Corporation (“Tuatara” or “TCAC”)), consummated the business combination of SpringBig, Inc. (“Legacy SpringBig”) and HighJump Merger Sub, Inc., the wholly-owned subsidiary of Tuatara, pursuant to the Amended and Restated Agreement of Plan Merger, dated as of April 14, 2022, as amended, by and among Tuatara, HighJump Merger Sub, Inc. and Legacy SpringBig. Prior to the closing of the business combination (the “Closing”), Tuatara changed its jurisdiction of incorporation by deregistering as a Cayman Islands exempted company and continuing and domesticating as a corporation incorporated under the laws of the State of Delaware. In connection with the Closing, the registrant changed its name from Tuatara Capital Acquisition Corporation to “SpringBig Holdings, Inc.” SpringBig will continue the existing business operations of Legacy SpringBig as a publicly traded company. See Note 9, Business Combination, to these consolidated financial statements for further information. While the legal acquirer in the business combination is SpringBig for financial accounting and reporting purposes under U.S. GAAP, Legacy SpringBig is the accounting acquirer, with the merger accounted for as a “reverse recapitalization.” A reverse recapitalization does not result in a new basis of accounting, and the financial statements of the combined entity represent the continuation of the financial statements of Legacy SpringBig. Under this accounting method, SpringBig is treated as the “acquired” company and Legacy SpringBig is the accounting acquirer, with the transaction treated as a recapitalization of Legacy SpringBig. SpringBig’s assets, liabilities and results of operations were consolidated with Legacy SpringBig’s beginning on the date of the business combination. Except for certain warrant liabilities, the assets and liabilities of SpringBig were recognized at historical cost (which is consistent with carrying value) and were not material, with no goodwill or other intangible assets recorded. The warrant liabilities, which are discussed in Note 11, Warrant Liabilities, were recorded at fair value. The consolidated assets, liabilities, and results of operations of Legacy SpringBig became the historical financial statements, and operations prior to the closing of the business combination presented for comparative purposes are those of Legacy SpringBig. Pre-merger shares of common stock and preferred stock of Legacy SpringBig were converted to shares of common stock of the combined company using the conversion ratio of 0.59289 and for comparative purposes, the shares and net loss per share of Legacy SpringBig prior to the merger have been retroactively restated using the conversion ratio. Beginning June 15, 2022, the ticker symbols for the Company’s common stock and publicly-traded warrants were changed to “SBIG” and “SBIGW,” respectively, and commenced trading on The Nasdaq Global Market. The Company received net proceeds of $18.8 million, with gross proceeds of $25.1 million, which were in addition to the $7.0 million in Convertible Notes proceeds, which were received in February 2022 in connection with Legacy SpringBig’s issuance of such notes (and which Convertible Notes and the interest due thereon were converted into common stock in connection with the business combination. See Note 10, 15% Convertible Promissory Notes, to these consolidated financial statements). Of the amount received at the Closing, approximately $8.8 million represented cash from the TCAC trust related to unredeemed shares; $6.1 million represented proceeds from the subscription for common stock from certain investors (the “PIPE Financing”), and $10.0 million from the Secured Convertible Note (defined below). The Company incurred additional cash and non cash expenses totaling $8.7 million, resulting in net business combination proceeds of $10.1 million.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The unaudited consolidated financial statements have been prepared in conformity with the rules and regulations of the SEC for Quarterly Reports on Form 10-Q and therefore do not include certain information, accounting policies, and footnote disclosure information or footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. However, all adjustments (consisting of normal recurring accruals), which, in the opinion of management, are necessary for a fair presentation of the financial statements, have been included. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for future periods or for the year ending December 31, 2023. The financial data presented herein should be read in conjunction with the audited consolidated financial statements and accompanying notes as of and for the year ended December 31, 2022, as reported in the 2022 Annual Report on Form 10-K. Going Concern and Liquidity Historically, the Company has incurred losses, which has resulted in an accumulated deficit of approximately $28.6 million as of March 31, 2023. Cash flows realized through operating activities were $0.4 million for the three months ended March 31, 2023. For the three months ending March 31, 2022, cash flows used in operating activities were $2.4 million. As of March 31, 2023, the Company had a working capital deficit of approximately $4.7 million, inclusive of $2.6 million in cash and cash equivalents to cover overhead expenses. The Company’s ability to continue as a going concern is dependent on its ability to meet its liquidity needs through a combination of factors but not limited to, cash and cash equivalents, the ongoing increase in revenue through increased usage by customers and new customers, its Stock Purchase Agreement and strategic capital raises. The ultimate success to these plans is not guaranteed. Based on management projections for increases in revenue and cash on hand, we concluded that there was substantial doubt about our ability to continue to operate as a going concern for the 12 months following the issuance of the accompanying consolidated financial statements. The accompanying consolidated financial statements are prepared on a going concern basis and do not include any adjustments that might result from uncertainty about the Company’s ability to continue as a going concern. Foreign Currency We translate the financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and actual exchange rates for revenue, costs and expenses on the date of the transaction. Translation gains and losses are included within “other comprehensive income” on the consolidated statements of operations. These gains and losses are immaterial to the financial statements. Deferred Payroll Tax Credits The Company may be eligible to receive certain payroll tax credits as a result of governmental legislation. Due to the complexities in calculating and qualifying for payroll tax credits, any benefits we may receive are uncertain and may significantly differ from our current estimates. Accordingly, we record any benefits related these types of credits upon both the receipt of the benefit and the resolution of the uncertainties, including, but not limited to, the completion of any potential audit or examination, or the expiration of the related statute of limitations. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions that we believe to be reasonable. We believe that the assumptions and estimates associated with revenue recognition, software development costs, income taxes, and equity-based compensation have the greatest potential impact on our consolidated financial statements. Therefore, we consider these to be our critical accounting policies and estimates. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these financial statements change as new events occur, as more experience is acquired, as additional information is obtained, and as the operating environment changes. Actual results may differ materially from these estimates. Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. To date, we have not experienced any losses on our cash and cash equivalents. We perform periodic evaluations of the relative credit standing of the financial institutions. We perform ongoing credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable balances. See Effective Accounting Pronouncements within this Note below for further information. We had one customer representing 12% of our total revenues for the three months ended March 31, 2023. By comparison, we had no customers representing more than 10% of total revenues for the three months ended March 31, 2022. At March 31, 2023, we had two customers representing 23% of accounts receivable, and one customer representing 12% of accounts receivable at December 31, 2022. Transaction Costs The Company incurred significant costs direct and incremental to the business combination and therefore to the recapitalization of the Company. We deferred such costs incurred in 2021. In 2022, upon closing of the business combination, total direct transaction costs were allocated between equity and liability instruments measured at fair value on a recurring basis that were newly issued in the recapitalization. Amounts allocated to equity were recorded to additional paid-in capital, while amounts allocated to the specified liabilities were recorded as other expense. See Note 9, Business Combination, to these consolidated financial statements for further information. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less, when acquired, to be cash equivalents. The Company maintains its cash with three commercial banks. As of March 31, 2023 and the Company exceeded the federally insured limits of $250,000 for interest and non-interest bearing deposits. The Company had cash balances with a single financial institution in excess of the FDIC insured limits by amounts of $2.1 million as of March 31, 2023. We monitor the financial condition of such institution and have not experienced any losses associated with these accounts. Allowance for Credit Losses The Corporation's reserve methodology used to determine the appropriate level of the allowance for credit losses ("ACL") is a critical accounting estimate. The ACL is maintained at a level believed to be appropriate to provide for the current credit losses expected to be incurred related to the Company’s accounts and unbilled receivables at the balance sheet date. The evaluation of expected losses is based on the probability of default using historical loss rates, as well as adjustments for forward-looking information, including industry and macroeconomic forecasts, as required. Management's current methodology includes utilizing a historical loss rate equivalent to the average loss rate during the preceding forty-eight months and applying this rate to accounts and unbilled receivables at the date of recording. This rate as well as the various quantitative and qualitative factors used in the methodologies are reviewed quarterly. Effective Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08 - Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. We adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements for the period ended March 31, 2023. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to revise the criteria for the measurement, recognition, and reporting of credit losses on financial instruments to be recognized when expected. In November 2019, FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), which deferred the effective date of ASU 2016-13 to annual reporting periods beginning after December 15, 2022, with early adoption permitted. We adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements for the period ended March 31, 2023.
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ACCOUNTS RECEIVABLE |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable, net consisted of the following (in thousands):
Bad debt expense was $169,000 and $33,000 for the three months ended March 31, 2023 and 2022, respectively.
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PREPAID EXPENSES AND OTHER CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following (in thousands):
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PROPERTY AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands):
The useful life of computer equipment, software, furniture and fixtures, and the data warehouse is 3 years. Depreciation and amortization expense for the three months ended March 31, 2023 and 2022 was $66,000 and $59,000, respectively. The amounts are included in general and administrative expenses in the consolidated statements of operations.
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CONVERTIBLE NOTE RECEIVABLE |
3 Months Ended |
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Mar. 31, 2023 | |
Receivables [Abstract] | |
CONVERTIBLE NOTE RECEIVABLE | CONVERTIBLE NOTE RECEIVABLE In April 2022, the Company purchased $250,000 in aggregate principal amount of convertible promissory note due April 1, 2026 (the “Convertible Note Receivable”). The Convertible Note Receivable accrues interest at the rate of 5% per annum on the principal amount of the Convertible Note Receivable which is payable at maturity. The issuer may not prepay the note prior to its maturity date without the consent of the Company. The Convertible Note Receivable is convertible in equity securities of the borrower in the event that the borrower issues and sells shares to investors on or before the maturity date, subject to certain other conditions. The conversion price is based on the occurrence of certain actions by the issuer. The Company earned $3,000 in interest income on the Convertible Note Receivable for the three months ended March 31, 2023.
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ACCRUED EXPENSES AND OTHER LIABILITIES |
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ACCRUED EXPENSES AND OTHER LIABILITIES | ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other current liabilities consisted of the following (in thousands):
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RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONSThe Company incurred software development and information technology related costs to a vendor related through common ownership to a major stockholder of approximately $4,000 for the three months ended March 31, 2023, with $29,000 for the three months ended March 31, 2022, respectively. Amounts due to this related party were $3,000 and $3,000 at March 31, 2023 and December 31, 2022, respectively, and the related expense is recorded to technology and software development costs on the consolidated statement of operations. |
BUSINESS COMBINATION |
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Reverse Recapitalization Business Combination And Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATION | BUSINESS COMBINATION The business combination between Tuatara and Legacy SpringBig was consummated on June 14, 2022. Holders of an aggregate of 19,123,806 Class A ordinary shares of Tuatara sold in its initial public offering exercised their right to have such shares redeemed for a full pro rata portion of the trust account holding the proceeds from Tuatara’s IPO, which was approximately $10.01 per share, or $191,437,817 in the aggregate. The holders that did not elect to have their shares redeemed, received, following the domestication, additional shares of common stock which amounted to 876,194 shares of common stock, resulting in total shares of 1,752,388. Beginning June 15, 2022, the ticker symbols for TCAC’s common stock and warrants were changed to “SBIG” and “SBIGW,” respectively, and commenced trading on The Nasdaq Global Market. The Company received net proceeds of $18.8 million, with gross proceeds of $25.1 million, in addition to the $7.0 million Convertible Notes which were issued in February 2022 and were converted into common stock at the Closing, see Note 10, 15% Convertible Promissory Notes, to these consolidated financial statements for further information. Of the amounts received, approximately $8.8 million represents remaining funds for unredeemed shares from the TCAC trust; $6.1 million from PIPE Financing proceeds and $10.0 million from the Secured Convertible Note. On April 29, 2022, the Company entered into the Stock Purchase Agreement with Cantor, which was subsequently amended on July 20, 2022. The Company, in its sole discretion, shall have the right, but not the obligation, to issue and sell to Cantor, and Cantor shall purchase from the Company, up to $50.0 million of common shares, par value $0.0001 per share, subject to certain terms and conditions. In connection with the Facility, the Company incurred a $1.5 million commitment fee which it settled in exchange for 877,193 shares of common stock. The following table provides a summary of the significant sources and uses of cash related to the closing of the business combination on June 14, 2022, (in thousands):
The following table provides a reconciliation of the common shares related to the business combination transaction:
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BUSINESS COMBINATION | BUSINESS COMBINATION The business combination between Tuatara and Legacy SpringBig was consummated on June 14, 2022. Holders of an aggregate of 19,123,806 Class A ordinary shares of Tuatara sold in its initial public offering exercised their right to have such shares redeemed for a full pro rata portion of the trust account holding the proceeds from Tuatara’s IPO, which was approximately $10.01 per share, or $191,437,817 in the aggregate. The holders that did not elect to have their shares redeemed, received, following the domestication, additional shares of common stock which amounted to 876,194 shares of common stock, resulting in total shares of 1,752,388. Beginning June 15, 2022, the ticker symbols for TCAC’s common stock and warrants were changed to “SBIG” and “SBIGW,” respectively, and commenced trading on The Nasdaq Global Market. The Company received net proceeds of $18.8 million, with gross proceeds of $25.1 million, in addition to the $7.0 million Convertible Notes which were issued in February 2022 and were converted into common stock at the Closing, see Note 10, 15% Convertible Promissory Notes, to these consolidated financial statements for further information. Of the amounts received, approximately $8.8 million represents remaining funds for unredeemed shares from the TCAC trust; $6.1 million from PIPE Financing proceeds and $10.0 million from the Secured Convertible Note. On April 29, 2022, the Company entered into the Stock Purchase Agreement with Cantor, which was subsequently amended on July 20, 2022. The Company, in its sole discretion, shall have the right, but not the obligation, to issue and sell to Cantor, and Cantor shall purchase from the Company, up to $50.0 million of common shares, par value $0.0001 per share, subject to certain terms and conditions. In connection with the Facility, the Company incurred a $1.5 million commitment fee which it settled in exchange for 877,193 shares of common stock. The following table provides a summary of the significant sources and uses of cash related to the closing of the business combination on June 14, 2022, (in thousands):
The following table provides a reconciliation of the common shares related to the business combination transaction:
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15% CONVERTIBLE PROMISSORY NOTES |
3 Months Ended |
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Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
15% CONVERTIBLE PROMISSORY NOTES | 15% CONVERTIBLE PROMISSORY NOTES In February 2022, the Company issued $7.0 million in aggregate principal amount of convertible promissory notes due September 30, 2022 (the “Convertible Notes”). The Convertible Notes accrued interest at the rate of 15% per annum on the principal amount of the Convertible Notes, due and payable at the maturity date of September 30, 2022 (the “Maturity Date”), if not converted prior to the maturity date. Under the terms of such notes, the conversion of the Convertible Notes could be triggered by the closing of the business combination between Tuatara and Legacy SpringBig, the occurrence of the stated maturity date, or in connection with certain equity issuances. The Convertible Notes contained customary events of default such as failures to observe or perform any covenants, obligation, condition or agreement contained in the Convertible Notes and commencement of bankruptcy. In connection with the consummation of the business combination, the Convertible Notes and outstanding accrued interest converted in full into 730,493 shares of common stock at a price of $10.00 per share, representing repayment of principal of $7.0 million and outstanding interest of $305,000, in accordance with the terms of the Convertible Notes. During the three months ended March 31, 2022, the Company recorded $89,000 of interest expense on the Convertible Notes. SENIOR SECURED CONVERTIBLE NOTESIn connection with the business combination, on June 14, 2022, the Company issued $11.0 million in aggregate principal amount of Senior Secured Original Issue Discount Convertible Note, due June 14, 2024 (the “Secured Convertible Notes”), issued at a discount of $1.0 million, with proceeds of $10.0 million received on the Closing Date. The Secured Convertible Notes accrue interest at the rate of 6.0% per annum which, along with equal principal payments through June 2024, are due in cash in arrears beginning six months after the notes’ issuance. The Company may, at its option, satisfy each principal payment either in cash or, if certain conditions set forth in the Secured Convertible Notes are met, by issuing a number of shares of common stock equal to the amount due on such date divided by the lower of (i) the number of shares determined based on at a rate of $12.00 per share or (ii) 93% of the volume-weighted average price prior to such monthly payment date. A warrant representing 586,890 shares of common stock of the Company (the “Convertible Warrant”) with a fair value of $839,000 was also issued in a private placement with the purchaser party thereto. To determine the fair value of the Convertible Warrant, the Company performed a Black-Scholes calculation as of June 14, 2022 using a stock price of $4.28, a strike price of $12.00, a risk free rate of 3.61%, annualized volatilty of 65%, and a time to maturity of five years. The Convertible Warrant is exercisable for shares of the Company’s common stock at an exercise price of $12.00 per share, subject to certain anti-dilution adjustments. Warrants are classified as equity on SpringBig’s consolidated balance sheet as of March 31, 2023. The Note is currently convertible at the option of the holder at an initial conversion share price of $12.00 per share. The Secured Convertible Notes are secured against substantially all the assets of the Company and each material subsidiary, including Legacy SpringBig. The Secured Convertible Notes include restrictive covenants that, among other things, limit the ability of the Company to incur additional indebtedness and guarantee indebtedness; incur liens or allow mortgages or other encumbrances; prepay, redeem, or repurchase certain other debt; pay dividends or make other distributions or repurchase or redeem our capital stock; sell assets or enter into or effect certain other transactions (including a reorganization, consolidation, dissolution or similar transaction or selling, leasing, licensing, transferring or otherwise disposing of assets of the Company or its subsidiaries); issue additional equity (outside of the equity facility with Cantor, issuances under our equity compensation plan and other limited exceptions); enter into variable rate transactions (exclusive of the equity facility with Cantor); and adopt certain amendments to our governing documents, among other restrictions. The Notes also contains customary events of default. At March 31, 2023, the outstanding principal of the Secured Convertible Notes was $8.3 million with a carrying value of $7.1 million, net of a discount of $1.2 million. The Company recorded $391,000 of interest expense related to the Secured Convertible Notes for the three months ended March 31, 2023.
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SENIOR SECURED CONVERTIBLE NOTES |
3 Months Ended |
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Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
SENIOR SECURED CONVERTIBLE NOTES | 15% CONVERTIBLE PROMISSORY NOTES In February 2022, the Company issued $7.0 million in aggregate principal amount of convertible promissory notes due September 30, 2022 (the “Convertible Notes”). The Convertible Notes accrued interest at the rate of 15% per annum on the principal amount of the Convertible Notes, due and payable at the maturity date of September 30, 2022 (the “Maturity Date”), if not converted prior to the maturity date. Under the terms of such notes, the conversion of the Convertible Notes could be triggered by the closing of the business combination between Tuatara and Legacy SpringBig, the occurrence of the stated maturity date, or in connection with certain equity issuances. The Convertible Notes contained customary events of default such as failures to observe or perform any covenants, obligation, condition or agreement contained in the Convertible Notes and commencement of bankruptcy. In connection with the consummation of the business combination, the Convertible Notes and outstanding accrued interest converted in full into 730,493 shares of common stock at a price of $10.00 per share, representing repayment of principal of $7.0 million and outstanding interest of $305,000, in accordance with the terms of the Convertible Notes. During the three months ended March 31, 2022, the Company recorded $89,000 of interest expense on the Convertible Notes. SENIOR SECURED CONVERTIBLE NOTESIn connection with the business combination, on June 14, 2022, the Company issued $11.0 million in aggregate principal amount of Senior Secured Original Issue Discount Convertible Note, due June 14, 2024 (the “Secured Convertible Notes”), issued at a discount of $1.0 million, with proceeds of $10.0 million received on the Closing Date. The Secured Convertible Notes accrue interest at the rate of 6.0% per annum which, along with equal principal payments through June 2024, are due in cash in arrears beginning six months after the notes’ issuance. The Company may, at its option, satisfy each principal payment either in cash or, if certain conditions set forth in the Secured Convertible Notes are met, by issuing a number of shares of common stock equal to the amount due on such date divided by the lower of (i) the number of shares determined based on at a rate of $12.00 per share or (ii) 93% of the volume-weighted average price prior to such monthly payment date. A warrant representing 586,890 shares of common stock of the Company (the “Convertible Warrant”) with a fair value of $839,000 was also issued in a private placement with the purchaser party thereto. To determine the fair value of the Convertible Warrant, the Company performed a Black-Scholes calculation as of June 14, 2022 using a stock price of $4.28, a strike price of $12.00, a risk free rate of 3.61%, annualized volatilty of 65%, and a time to maturity of five years. The Convertible Warrant is exercisable for shares of the Company’s common stock at an exercise price of $12.00 per share, subject to certain anti-dilution adjustments. Warrants are classified as equity on SpringBig’s consolidated balance sheet as of March 31, 2023. The Note is currently convertible at the option of the holder at an initial conversion share price of $12.00 per share. The Secured Convertible Notes are secured against substantially all the assets of the Company and each material subsidiary, including Legacy SpringBig. The Secured Convertible Notes include restrictive covenants that, among other things, limit the ability of the Company to incur additional indebtedness and guarantee indebtedness; incur liens or allow mortgages or other encumbrances; prepay, redeem, or repurchase certain other debt; pay dividends or make other distributions or repurchase or redeem our capital stock; sell assets or enter into or effect certain other transactions (including a reorganization, consolidation, dissolution or similar transaction or selling, leasing, licensing, transferring or otherwise disposing of assets of the Company or its subsidiaries); issue additional equity (outside of the equity facility with Cantor, issuances under our equity compensation plan and other limited exceptions); enter into variable rate transactions (exclusive of the equity facility with Cantor); and adopt certain amendments to our governing documents, among other restrictions. The Notes also contains customary events of default. At March 31, 2023, the outstanding principal of the Secured Convertible Notes was $8.3 million with a carrying value of $7.1 million, net of a discount of $1.2 million. The Company recorded $391,000 of interest expense related to the Secured Convertible Notes for the three months ended March 31, 2023.
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WARRANT LIABILITIES |
3 Months Ended |
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Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
WARRANT LIABILITIES | WARRANT LIABILITIES Prior to the business combination, at the time of their initial public offering, TCAC issued warrants to purchase 10,000,000 Class A ordinary shares at a price of $11.50 per share, for aggregate consideration of $10.0 million as part of the units offered by the prospectus and, simultaneously with the closing of their initial public offering, issued in a private placement an aggregate of 6,000,000 private placement warrants for aggregate consideration of $6.0 million, each exercisable to purchase one Class A ordinary share at a price of $11.50 per share. The Company accounts for the warrants in accordance with the guidance contained in ASC 815 Derivatives and Hedging, under which the warrants do not meet the criteria for equity treatment and hence recorded as liabilities. Accordingly, we classify the warrants as liabilities at their fair value and adjust the warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised or expired, and any change in fair value is recognized in our statement of operations. At March 31, 2023, the estimated fair value of the warrants is $491,000. The Company recorded a change in fair value loss of approximately $153,000 for the three months ended March 31, 2023. These amount is included in the consolidated statements of operations. The fair value is determined in accordance with ASC 820, Fair Value Measurement. See Note 17, Fair Value Measurements, to the accompanying consolidated financial statements for further information.
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REVENUE RECOGNITION |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION Effective January 1, 2022 the Company corrected the classification of credits given to customers to report the credits as a reduction of revenue. Below is a summary of the impact of the revision for the three months ending March 31, 2022.
The following table represents our revenues disaggregated by type (in thousands):
Geographic Information Revenue by geographical region consist of the following (in thousands):
Revenues by geography are generally based on the country of the Company’s contracting entity. Total United States revenue was approximately 97% of total revenue for the three months ended March 31, 2023 and 98% for the three months ended March 31, 2022. As of March 31, 2023 and December 31, 2022, substantially all of our long-lived assets were attributable to operations in the United States. An immaterial amount of assets are located in Canada. CONTRACT ASSETS AND LIABILITIESContract assets consisted of the following as of (in thousands):
The movement in the contract assets during the three months ended March 31, 2023 and the year ended December 31, 2022, comprised the following (in thousands):
Contract liabilities consisted of the following as of (in thousands):
The movement in the contract liabilities during the three months ended March 31, 2023 and the year ended December 31, 2022, comprised the following (in thousands):
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CONTRACT ASSETS AND LIABILITIES |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONTRACT ASSETS AND LIABILITIES | REVENUE RECOGNITION Effective January 1, 2022 the Company corrected the classification of credits given to customers to report the credits as a reduction of revenue. Below is a summary of the impact of the revision for the three months ending March 31, 2022.
The following table represents our revenues disaggregated by type (in thousands):
Geographic Information Revenue by geographical region consist of the following (in thousands):
Revenues by geography are generally based on the country of the Company’s contracting entity. Total United States revenue was approximately 97% of total revenue for the three months ended March 31, 2023 and 98% for the three months ended March 31, 2022. As of March 31, 2023 and December 31, 2022, substantially all of our long-lived assets were attributable to operations in the United States. An immaterial amount of assets are located in Canada. CONTRACT ASSETS AND LIABILITIESContract assets consisted of the following as of (in thousands):
The movement in the contract assets during the three months ended March 31, 2023 and the year ended December 31, 2022, comprised the following (in thousands):
Contract liabilities consisted of the following as of (in thousands):
The movement in the contract liabilities during the three months ended March 31, 2023 and the year ended December 31, 2022, comprised the following (in thousands):
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STOCK BASED COMPENSATION |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Share-Based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION At the Special Meeting, in connection with the business combination, the Tuatara shareholders approved the SpringBig Holdings, Inc. 2022 Long-Term Incentive Plan (the “2022 Incentive Plan”), which became effective upon the Closing. The number of shares of our common stock initially reserved for issuance under the 2022 Incentive Plan was 1,525,175, which equaled the amount of shares of our common stock equal to 5% of the sum of (i) the number of shares of our common stock outstanding as of the Closing and (ii) the number of shares of our common stock underlying stock options issued under the SpringBig, Inc. 2017 Equity Incentive Plan (as amended and restated) (the “Legacy Incentive Plan”) that were outstanding as of the Closing. Shares subject to stock awards granted under the 2022 Incentive Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, will not reduce the number of shares available for issuance under the 2022 Incentive Plan. Prior to the closing of the merger, Legacy SpringBig maintained an equity incentive plan (the “Legacy Incentive Plan”), which was originally established effective December 1, 2017. The Legacy Incentive Plan permitted the grant of incentive stock options, non-qualified stock options, restricted stock awards, and restricted stock unit awards to Legacy SpringBig and its affiliates’ employees, consultants and directors. SpringBig will not grant any additional awards under the Legacy Incentive Plan following the business combination. During the three months ended March 31, 2023 and 2022, compensation expense recorded in connection with the Legacy Incentive Plan was $30,000 and $181,000, respectively. During the three months ended March 31, 2023, compensation expense recorded in connection with the 2022 Incentive Plan was $132,000. These charges are recorded in administrative expense on the consolidated statements of operations. The following table summarizes information on stock options outstanding as of March 31, 2023 under the Legacy Incentive Plan:
The intrinsic value of the options exercised during the three months ended March 31, 2023 was $100,000. As of March 31, 2023, the intrinsic value of the 2,945,020 options outstanding and exercisable was $779,000. As of March 31, 2023, the total compensation cost related to non-vested awards not yet recognized was $152,000 with a weighted-average period of 1.25 years over which it is expected to be recognized. The following table summarizes information on Restricted Stock Units outstanding as of March 31, 2023 under the 2022 Incentive Plan:
The compensation expense recognized for the three months ended March 31, 2023 related to the Restricted Stock Units was $132,000 and the remaining expense of approximately $1.5 million will be recognized in future periods through September 2025. The Restricted Stock Units vest one-third on each of the first, second, and third anniversary after issuance.
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LEASES |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) in February 2016 (“Lease Standard”). The amendments are effective for fiscal years beginning after December 15, 2021, for all entities, and interim periods within those fiscal years for public business entities and interim periods within fiscal years beginning after December 15, 2022, for all other entities. The Company adopted this standard on January 1, 2022. SpringBig elected to take the cumulative transition approach to accounting for the adoption of the Lease Standard. This approach requires entities to apply the ASC 842 requirements in the period of adoption (i.e., assuming an adoption date of January 1, 2022, SpringBig’s comparative financial statements for the years ended December 31, 2022 and 2021 would need to apply ASC 842 only for the year ended December 31, 2022). As of the adoption date of January 1, 2022, the Company recorded ROU assets of $1.1 million and lease liabilities of $1.1 million. A cumulative effect adjustment to equity of $31,000 was recorded as of the adoption date. The Company leases office facilities in Boca Raton, Florida, Seattle, Washington and Ontario, Canada under non-cancelable operating lease agreements. The leases require monthly payments ranging from $3,000 to $42,000 and expire on various dates through November 2024. In addition to minimum rent, the Company is required to pay a proportionate share of operating expenses under these leases. In June of 2022, the Company entered into a lease with the current landlord for the Company’s corporate headquarters under which the current leases will be replaced by the new lease on a single floor in the same building as the Company currently occupies. The new lease will commence on the sooner of the day the Company takes occupancy or day of substantial completion of leasehold improvements. Neither of these events had taken place as of March 31, 2023. The new lease term is for 98 months. Monthly rental payments range from $38,000 to $48,000 over the life of the lease. As of March 31, 2023 and December 31, 2022, the following amounts were presented on SpringBig’s consolidated balance sheets in accordance with the Leasing Standard.
For the three months ended March 31, 2023 and March 31, 2022, the Company’s operating lease cost was $133,000 and $89,000, respectively. Other information pertaining to capitalized assets and liabilities under the leasing standard is as follows.
As of March 31, 2023, the Company’s lease liabilities mature as follows:
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMITTMENTS AND CONTINGENCIES Employment Agreements The Company has entered into employment agreements with Jeffrey Harris, CEO of SpringBig, and Paul Sykes, CFO of SpringBig, which became effective as of the consummation of the business combination. Litigation The Company is from time to time involved in litigation incidental to the conduct of its business. In accordance with applicable accounting guidance, the Company records a provision for a liability when it is both probable that a liability has been incurred and the amount can be reasonably estimated. Management believes that the outcome of such legal proceedings, legal actions and claims will not have a significant adverse effect on the Company’s financial position, results of operations or cash flows. Employee Retention Payroll Tax Credits In March 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide economic and other relief as a result of the COVID-19 pandemic. The CARES Act includes, among other items, provisions relating to refundable employee retention payroll tax credits. Due to the complex nature of the employee retention credit computations, any benefits we may receive are uncertain and may significantly differ from our current estimates. We plan to record any benefit related to these credits upon both the receipt of the benefit and the resolution of the uncertainties, including, but not limited to, the completion of any potential audit or examination, or the expiration of the related statute of limitations. During the three months ended March 31, 2023, we received $2.0 million related to these credits, recognized $0.6 million as an offset related to operating expenses thorough accounts payable, and we have deferred recognition of remaining $1.4 million, which is recorded in current liabilities on the consolidated balance sheets.
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FAIR VALUE MEASUREMENTS |
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FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Valuation is based on unadjusted quoted prices in active markets for identical assets and liabilities that are accessible at the reporting date. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2: Valuation is determined from pricing inputs that are other than quoted prices in active markets that are either directly or indirectly observable as of the reporting date. Observable inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Valuation is based on inputs that are both significant to the fair value measurement and unobservable. Level 3 inputs include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value generally require significant management judgment or estimation. Liabilities measured at fair value on a recurring basis The balances of the Company’s liabilities measured at fair value on a recurring basis as of March 31, 2023, are as follows (in thousands):
The following is a description of the methodologies used to estimate the fair values of liabilities measured at fair value on a recurring basis and within the fair value hierarchy. Warrant liabilities Prior to the business combination, TCAC issued warrants to purchase 10,000,000 Class A ordinary shares at a price of $11.50 per whole share, as part of the units offered by the prospectus for their initial public offering and, simultaneously with the closing of their initial public offering, issued in a private placement an aggregate of 6,000,000 private placement warrants, each exercisable to purchase one Class A ordinary share at a price of $11.50 per share. The Company utilizes a fair value approach to account for its warrants based on the quoted price at March 31, 2023, the calculation is consistent with ASC 820, Fair Value Measurement, with changes in fair value recorded in current earnings. At March 31, 2023, the value of the public warrants was approximately $491,200 using a closing price of $0.031. Changes in Fair Value The following tables provides a roll-forward in the changes in fair value in the public warrants for the three months ended March 31, 2023,
There were no transfers of financial liabilities between levels of the fair value hierarchy during the three months ended March 31, 2023. Other Fair Value Considerations – Carrying value of accounts receivables, contract assets, prepaid expenses and other assets, accounts payable and accrued expenses approximate fair value due to their short-term maturities and/or low credit risk.
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STOCKHOLDERS’ EQUITY |
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STOCKHOLDERS’ EQUITY | STOCKHOLDERS’ EQUITY The Consolidated Statements of Changes in Stockholders' Equity reflect the reverse recapitalization on June 14, 2022, as discussed in Note 9, Business Combination, to these consolidated financial statements. Because the Company was determined to be the accounting acquirer in the transaction, all periods presented prior to consummation of the transaction reflect the historical activity and balances of Legacy SpringBig, Inc. (other than common stock and potentially issuable shares underlying stock options which have been retroactively restated). Immediately after giving effect to the business combination, the following equity securities of SpringBig were issued and outstanding: (i) 5,752,388 shares of SpringBig common stock issued to the holders of Tuatara Class A ordinary shares and Tuatara Class B ordinary shares that automatically convert into Tuatara Class A ordinary shares upon the occurrence of the business combination in accordance with Tuatara’s amended and restated memorandum and articles of association as consideration in the business combination (comprised of 1,752,388 Class A ordinary shares after giving effect to the redemptions and the issuance of shares to public shareholders who did not elect to redeem their public shares and 4,000,000 Class B ordinary shares that converted into common stock), (ii) 18,196,526 shares of SpringBig common stock issued to the stockholders of SpringBig as consideration in the business combination, (iii) 10,000,000 warrants to purchase shares of SpringBig common stock issued to holders of the Public Shares upon conversion of warrants to purchase Tuatara Class A ordinary shares in connection with the business combination (each, a “New SpringBig Public Warrant”), (iv) 6,000,000 warrants to purchase shares of SpringBig common stock issued to Sponsor (as defined below) upon conversion of warrants to purchase Tuatara Class A Common Stock, and (v) 1,310,000 shares of SpringBig common stock issued to private investors (the “PIPE Investors”) in the PIPE Financing, plus 31,356 shares paid to certain PIPE Investors pursuant to the Convertible Notes. Prior to the consummation of the business combination, the capital stock of Legacy SpringBig consisted of Series A, B and Seed preferred stock which was automatically convertible into common stock at the earlier of a $50.0 million initial public offering or vote of 63% of majority of preferred stockholders. The conversion rate of all preferred stock was at a one to one ratio to common stock. The preferred shares of stock were converted to SpringBig common stock at the Closing Date. With the consummation of the business combination, Legacy SpringBig issued and outstanding shares were converted into shares of SpringBig common stock as follows:
Sponsor Escrow Agreement At the time of the Closing, TCAC Sponsor, LLC, a Delaware limited liability company (“Sponsor”), Tuatara and certain independent members of Tuatara’s board of directors entered into an escrow agreement (“Sponsor Escrow Agreement”), providing that (i) immediately following the Closing, Sponsor and certain of Tuatara’s board of directors’ independent directors shall deposit an aggregate of 1,000,000 shares of our Common Stock (such deposited shares, the “Sponsor Earnout Shares”) into escrow, (ii) the Sponsor Earnout Shares shall be released to the Sponsor if the closing price of our Common Stock equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, and recapitalizations) on any twenty (20) trading days in a thirty (30) trading-day period ending at any time after the Closing Date and before the fifth anniversary of the Closing Date, and (iii) the Sponsor Earnout Shares will be terminated and canceled by us if such condition is not met by the fifth anniversary of the Closing Date. Contingent and Earnout Shares The holders of Legacy SpringBig’s common stock and the “engaged option holders” (employees or engaged consultants of Legacy SpringBig who held Legacy SpringBig options at the effective time of the merger and who remains employed or engaged by Legacy SpringBig at the time of such payment of contingent shares) shall be entitled to receive their pro rata portion of such number of shares, fully paid and free and clear of all liens other than applicable federal and state securities law restrictions, as set forth below upon satisfaction of any of the following conditions: a.7,000,000 contingent shares if the closing price of the Company’s common stock equals or exceeds $12.00 per share on any twenty (20) trading days in a thirty (30)-trading day period at any time after the Closing Date and no later than 60 months following the Closing Date; b.2,250,000 contingent shares if the closing price of the Company’s common stock equals or exceeds $15.00 per share on any twenty (20) trading days in a thirty (30)-trading day period at any time after the Closing Date and no later than 60 months following the Closing Date; and c.1,250,000 contingent shares if the closing price of the Company’s common stock equals or exceeds $18.00 per share on any twenty (20) trading days in a thirty (30)-trading day period at any time after the Closing Date and no later than 60 months following the Closing Date. With the consummation of the business combination, the Company’s authorized capital stock is 350,000,000 shares, consisting of 300,000,000 shares of common stock and 50,000,000 shares of preferred stock, with par value of 0.0001 per share.
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NET LOSS PER SHARE |
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NET LOSS PER SHARE | NET LOSS PER SHARE Given the consummation of the business combination, ASC 805, Business Combination states that the equity structure for the prior period of Legacy SpringBig (the accounting acquirer) is restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the accounting acquiree issued in the business combination. As of March 31, 2023 and 2022, there were 26,940,841 and 17,884,588 shares of common stock issued and outstanding, respectively. Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including outstanding stock options. Basic and diluted net loss per share was the same for each period presented, given that there are losses during the period, the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table reconciles actual basic and diluted earnings per share for the three months ended March 31, 2023 and 2022, respectively (in thousands, except share and per share data).
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share for the three months ended March 31, 2023 and 2022 were as follows:
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BENEFIT PLAN |
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Mar. 31, 2023 | |
Postemployment Benefits [Abstract] | |
BENEFIT PLAN | BENEFIT PLANThe Company maintains a safe harbor 401(k) retirement plan for the benefit of its employees. The plan allows participants to make contributions subject to certain limitations. Company matching contributions were $158,000 and $69,000 for the three months ended March 31, 2023 and 2022, respectively. |
INCOME TAXES |
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Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES In determining quarterly provisions for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date profit or loss, adjusted for discrete items arising in that quarter. The Company’s annual estimated effective tax rate differs from the U.S. federal statutory rate primarily as a result of state taxes, foreign taxes, and changes in the Company’s full valuation allowance against its deferred tax assets. |
SUBSEQUENT EVENTS |
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Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSManagement has considered subsequent events through May 4, 2023, the date this report was issued, and there were no events that required additional disclosure. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Foreign Currency | Foreign Currency We translate the financial statements of our foreign subsidiaries, which have a functional currency in the respective country’s local currency, to U.S. dollars using month-end exchange rates for assets and liabilities and actual exchange rates for revenue, costs and expenses on the date of the transaction. Translation gains and losses are included within “other comprehensive income” on the consolidated statements of operations. These gains and losses are immaterial to the financial statements.
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Deferred Payroll Tax Credits | Deferred Payroll Tax Credits The Company may be eligible to receive certain payroll tax credits as a result of governmental legislation. Due to the complexities in calculating and qualifying for payroll tax credits, any benefits we may receive are uncertain and may significantly differ from our current estimates. Accordingly, we record any benefits related these types of credits upon both the receipt of the benefit and the resolution of the uncertainties, including, but not limited to, the completion of any potential audit or examination, or the expiration of the related statute of limitations.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We base our estimates on historical experience and various other assumptions that we believe to be reasonable. We believe that the assumptions and estimates associated with revenue recognition, software development costs, income taxes, and equity-based compensation have the greatest potential impact on our consolidated financial statements. Therefore, we consider these to be our critical accounting policies and estimates. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. Accounting estimates used in the preparation of these financial statements change as new events occur, as more experience is acquired, as additional information is obtained, and as the operating environment changes. Actual results may differ materially from these estimates.
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Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject us to concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. We place our cash and cash equivalents with high credit-quality financial institutions. Such deposits may be in excess of federally insured limits. To date, we have not experienced any losses on our cash and cash equivalents. We perform periodic evaluations of the relative credit standing of the financial institutions. We perform ongoing credit evaluations of our customers’ financial condition and require no collateral from our customers. We maintain an allowance for doubtful accounts receivable based upon the expected collectability of accounts receivable balances. See Effective Accounting Pronouncements within this Note below for further information.
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Transaction Costs | Transaction Costs The Company incurred significant costs direct and incremental to the business combination and therefore to the recapitalization of the Company. We deferred such costs incurred in 2021. In 2022, upon closing of the business combination, total direct transaction costs were allocated between equity and liability instruments measured at fair value on a recurring basis that were newly issued in the recapitalization. Amounts allocated to equity were recorded to additional paid-in capital, while amounts allocated to the specified liabilities were recorded as other expense. See Note 9, Business Combination, to these consolidated financial statements for further information.
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less, when acquired, to be cash equivalents. The Company maintains its cash with three commercial banks.
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Allowance for Credit Losses | The Corporation's reserve methodology used to determine the appropriate level of the allowance for credit losses ("ACL") is a critical accounting estimate. The ACL is maintained at a level believed to be appropriate to provide for the current credit losses expected to be incurred related to the Company’s accounts and unbilled receivables at the balance sheet date. The evaluation of expected losses is based on the probability of default using historical loss rates, as well as adjustments for forward-looking information, including industry and macroeconomic forecasts, as required. Management's current methodology includes utilizing a historical loss rate equivalent to the average loss rate during the preceding forty-eight months and applying this rate to accounts and unbilled receivables at the date of recording. This rate as well as the various quantitative and qualitative factors used in the methodologies are reviewed quarterly. |
Effective Accounting Pronouncements | Effective Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08 - Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. For public business entities, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to business combinations occurring on or after the effective date of the amendments. Early adoption of the amendments is permitted, including adoption in an interim period. An entity that early adopts in an interim period should apply the amendments (1) retrospectively to all business combinations for which the acquisition date occurs on or after the beginning of the fiscal year that includes the interim period of early application and (2) prospectively to all business combinations that occur on or after the date of initial application. We adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements for the period ended March 31, 2023. In June 2016, FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, to revise the criteria for the measurement, recognition, and reporting of credit losses on financial instruments to be recognized when expected. In November 2019, FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), which deferred the effective date of ASU 2016-13 to annual reporting periods beginning after December 15, 2022, with early adoption permitted. We adopted this standard on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements for the period ended March 31, 2023.
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Fair Value Measurements | The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Valuation is based on unadjusted quoted prices in active markets for identical assets and liabilities that are accessible at the reporting date. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. Level 2: Valuation is determined from pricing inputs that are other than quoted prices in active markets that are either directly or indirectly observable as of the reporting date. Observable inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and interest rates and yield curves that are observable at commonly quoted intervals. Level 3: Valuation is based on inputs that are both significant to the fair value measurement and unobservable. Level 3 inputs include situations where there is little, if any, market activity for the financial instrument. The inputs into the determination of fair value generally require significant management judgment or estimation.
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Net Loss Per Share | Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including outstanding stock options. Basic and diluted net loss per share was the same for each period presented, given that there are losses during the period, the inclusion of all potential common shares outstanding would have been anti-dilutive. |
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Schedule of Accounts Receivable | Accounts receivable, net consisted of the following (in thousands):
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands):
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PROPERTY AND EQUIPMENT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment consist of the following (in thousands):
|
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands):
|
BUSINESS COMBINATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse Recapitalization Business Combination And Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reverse Recapitalization | The following table provides a summary of the significant sources and uses of cash related to the closing of the business combination on June 14, 2022, (in thousands):
The following table provides a reconciliation of the common shares related to the business combination transaction:
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REVENUE RECOGNITION (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Impact of Change in Policy | Below is a summary of the impact of the revision for the three months ending March 31, 2022.
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Schedule of Disaggregation of Revenue | The following table represents our revenues disaggregated by type (in thousands):
Revenue by geographical region consist of the following (in thousands):
|
CONTRACT ASSETS AND LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract with Customer, Contract Asset, Contract Liability, and Receivable | Contract assets consisted of the following as of (in thousands):
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STOCK BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Options Outstanding | The following table summarizes information on stock options outstanding as of March 31, 2023 under the Legacy Incentive Plan:
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Schedule of Restricted Stock Units Outstanding | The following table summarizes information on Restricted Stock Units outstanding as of March 31, 2023 under the 2022 Incentive Plan:
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | As of March 31, 2023 and December 31, 2022, the following amounts were presented on SpringBig’s consolidated balance sheets in accordance with the Leasing Standard.
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Schedule of Lease Cost and Other Information | Other information pertaining to capitalized assets and liabilities under the leasing standard is as follows.
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Schedule of Lease Liability Maturity | As of March 31, 2023, the Company’s lease liabilities mature as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Liabilities Measured on Recurring Basis | The balances of the Company’s liabilities measured at fair value on a recurring basis as of March 31, 2023, are as follows (in thousands):
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Schedule of Changes in Fair Value | The following tables provides a roll-forward in the changes in fair value in the public warrants for the three months ended March 31, 2023,
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STOCKHOLDERS’ EQUITY (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Issued and Outstanding | With the consummation of the business combination, Legacy SpringBig issued and outstanding shares were converted into shares of SpringBig common stock as follows:
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NET LOSS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reconciliation of Actual Basic and Diluted Earnings Per Share | The following table reconciles actual basic and diluted earnings per share for the three months ended March 31, 2023 and 2022, respectively (in thousands, except share and per share data).
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Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share | The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share for the three months ended March 31, 2023 and 2022 were as follows:
|
DESCRIPTION OF BUSINESS (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jun. 14, 2022
USD ($)
|
Feb. 28, 2022
USD ($)
|
Mar. 31, 2023
USD ($)
subsidiary
|
Mar. 31, 2022
USD ($)
|
|
Business Acquisition [Line Items] | ||||
Number of subsidiaries | subsidiary | 1 | |||
Recapitalization exchange ratio | 0.59289 | |||
Net proceeds from reverse recapitalization transaction | $ 18,789 | |||
Gross proceeds available at closing | 25,135 | |||
Proceeds from convertible notes | $ 7,000 | $ 0 | $ 7,000 | |
Amount available after paying TCAC redeeming stockholders | 8,771 | |||
Proceeds from PIPE Financing | 6,100 | |||
Payment of cash and noncash expenses | 8,679 | |||
Net cash after closing | 10,110 | |||
Convertible Notes Payable | ||||
Business Acquisition [Line Items] | ||||
Proceeds from convertible notes | $ 10,000 | |||
Convertible Notes Payable | 15.00% Convertible Notes | ||||
Business Acquisition [Line Items] | ||||
Interest rate | 15.00% | 15.00% |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Concentration Risk [Line Items] | |||
Accumulated deficit | $ 28,594 | $ 26,332 | |
Net cash provided by (used in) operating activities | 379 | $ (2,399) | |
Working capital | (4,700) | ||
Cash and cash equivalents | 2,569 | $ 3,546 | |
Cash in excess of insured limits | $ 2,100 | ||
One Customer | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12.00% | ||
Two Customers | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23.00% | 12.00% |
ACCOUNTS RECEIVABLE - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 4,048 | $ 3,639 |
Unbilled receivables | 743 | 731 |
Total Receivables | 4,791 | 4,370 |
Less allowance for doubtful accounts | (1,623) | (1,481) |
Accounts receivable, net | $ 3,168 | $ 2,889 |
ACCOUNTS RECEIVABLE - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Receivables [Abstract] | ||
Bad debt expense | $ 169 | $ 33 |
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid insurance | $ 374 | $ 834 |
Other prepaid expenses | 564 | 582 |
Deposits | 88 | 89 |
Total prepaid expenses and other current assets | $ 1,026 | $ 1,505 |
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total Cost | $ 840 | $ 831 |
Less accumulated depreciation and amortization | (522) | (456) |
Property and Equipment | 318 | 375 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Cost | 342 | 333 |
Furniture & Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total Cost | 15 | 15 |
Data warehouse | ||
Property, Plant and Equipment [Line Items] | ||
Total Cost | 286 | 286 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Total Cost | $ 197 | $ 197 |
PROPERTY AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Property and equipment, useful life | 3 years | |
Depreciation and amortization | $ 66 | $ 59 |
CONVERTIBLE NOTE RECEIVABLE (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Apr. 30, 2022 |
|
Receivables [Abstract] | |||
Convertible note receivable | $ 262 | $ 259 | $ 250 |
Note receivable, interest rate | 5.00% | ||
Interest income | $ 3 |
ACCRUED EXPENSES AND OTHER LIABILITIES - Schedule of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued wages, commission and bonus | $ 570 | $ 1,145 |
Accrued expenses | 434 | 148 |
Deferred financial advisory fees | 1,000 | 1,006 |
Other liabilities | 165 | 255 |
Accrued expense and other current liabilities | $ 2,169 | $ 2,554 |
RELATED PARTY TRANSACTIONS (Details) - Majority Shareholder - Software Development and Information Technology Related Costs - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
Dec. 31, 2022 |
|
Related Party Transaction [Line Items] | |||
Related party costs | $ 4 | $ 29 | |
Accounts payable, related party | $ 3 | $ 3 |
BUSINESS COMBINATION - Schedule Of Proceeds From Reverse Recapitalization (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jun. 14, 2022 |
Feb. 28, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Schedule Of Reverse Recapitalization [Line Items] | ||||
Amount available after paying TCAC redeeming stockholders | $ 8,771 | |||
Proceeds from convertible notes | $ 7,000 | $ 0 | $ 7,000 | |
Proceeds from PIPE Financing | 6,100 | |||
TCAC operating account | 264 | |||
Gross proceeds available at closing | 25,135 | |||
Expenses paid at closing | (6,346) | |||
Net cash to Legacy SpringBig at closing | 18,789 | |||
Post closing expense (cash paid or accrued for expenses by Legacy SpringBig) | (8,679) | |||
Net cash after closing | 10,110 | |||
Convertible Notes Payable | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Proceeds from convertible notes | $ 10,000 |
BUSINESS COMBINATION - Schedule Of Share Transactions In Reverse Recapitalization (Details) - shares |
Jun. 14, 2022 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|
Schedule Of Reverse Recapitalization [Line Items] | ||||
Common stock, shares, issued (in shares) | 25,290,270 | 26,940,841 | 26,659,711 | 17,884,588 |
Common stock, shares, outstanding (in shares) | 25,290,270 | 26,940,841 | 26,659,711 | 17,884,588 |
TCAC non-redeeming shareholders | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Issue of common stock (in shares) | 1,752,388 | |||
PIPE Investors | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Issue of common stock (in shares) | 1,341,356 | |||
TCAC sponsor shareholders | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Issue of common stock (in shares) | 4,000,000 | |||
Legacy SpringBig shareholders | ||||
Schedule Of Reverse Recapitalization [Line Items] | ||||
Issue of common stock (in shares) | 18,196,526 | |||
Common stock, shares, issued (in shares) | 8,362,933 | |||
Common stock, shares, outstanding (in shares) | 8,362,933 |
15% CONVERTIBLE PROMISSORY NOTES (Details) - USD ($) |
1 Months Ended | 3 Months Ended | ||
---|---|---|---|---|
Jun. 14, 2022 |
Feb. 28, 2022 |
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Short-Term Debt [Line Items] | ||||
Interest expense | $ 391,000 | $ 89,000 | ||
Convertible Notes Payable | ||||
Short-Term Debt [Line Items] | ||||
Accrued interest payable, current | $ 305,000 | $ 305,000 | ||
15.00% Convertible Notes | Convertible Notes Payable | ||||
Short-Term Debt [Line Items] | ||||
Interest rate | 15.00% | 15.00% | ||
Aggregate principal amount | $ 7,000,000 | |||
Issue of common stock (in shares) | 730,493 | 730,493 | ||
Share price (in dollars per share) | $ 10.00 | |||
Interest expense | $ 89,000 |
WARRANT LIABILITIES (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 14, 2022 |
Jun. 13, 2022 |
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative liability, noncurrent | $ 491 | $ 338 | ||
Fair value loss on warrants | 153 | |||
Estimate of Fair Value Measurement | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative liability, noncurrent | $ 491 | |||
Redeemable Warrants | Class A common stock | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Warrants outstanding (in shares) | 10,000,000 | 10,000,000 | ||
Exercise price of warrants (in dollars per share) | $ 11.50 | |||
Warrants and rights outstanding | $ 6,000 | $ 10,000 | ||
Number of shares issuable per each warrant (in shares) | 1 | |||
Private Placement Warrant | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Warrants outstanding (in shares) | 6,000,000 | |||
Exercise price of warrants (in dollars per share) | $ 11.50 |
REVENUE RECOGNITION - Summary Of Impact Of Change In Policy (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenues | $ 7,157 | $ 6,173 |
Cost of revenues | (1,350) | (1,652) |
Gross profit | $ 5,807 | 4,521 |
As reported | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenues | 6,364 | |
Cost of revenues | (1,843) | |
Gross profit | 4,521 | |
Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Revenues | (191) | |
Cost of revenues | 191 | |
Gross profit | $ 0 |
REVENUE RECOGNITION - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 7,157 | $ 6,173 |
Brand revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 295 | 189 |
Brand revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 294 | 189 |
Brand revenue | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 1 | 0 |
Retail revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 6,862 | 5,984 |
Retail revenue | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | 6,663 | 5,844 |
Retail revenue | Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 199 | $ 140 |
REVENUE RECOGNITION - Narrative (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Geographic Concentration Risk | Revenue from Contract with Customer Benchmark | United States | ||
Disaggregation of Revenue [Line Items] | ||
Concentration risk, percentage | 97.00% | 98.00% |
CONTRACT ASSETS AND LIABILITIES - Contract Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Deferred sales commissions | $ 323 | $ 333 |
CONTRACT ASSETS AND LIABILITIES - Movement in Contract Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Contract with Customer, Assets [Roll Forward] | ||
Contract assets at start of the period | $ 333 | $ 364 |
Expense deferred during the period | 48 | 176 |
(less) amounts expensed during the period | (58) | (207) |
Contract assets at end of the period | $ 323 | $ 333 |
CONTRACT ASSETS AND LIABILITIES - Contract Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 263 | $ 291 | $ 450 |
Deferred retail revenues | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 263 | 278 | |
Deferred brands revenues | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 0 | $ 13 |
CONTRACT ASSETS AND LIABILITIES - Movement in Contract Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Contract with Customer, Liability [Roll Forward] | ||
Contract liabilities at start of the period | $ 291 | $ 450 |
Amounts invoiced during the period | 5,027 | 18,310 |
Less revenue recognized during the period | (5,055) | (18,469) |
Contract liabilities at end of the period | $ 263 | $ 291 |
STOCK BASED COMPENSATION - Schedule of Restricted Stock Units Outstanding (Details) - Restricted Stock Units Outstanding - $ / shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Number of RSUs | ||
Outstanding beginning balance (in shares) | 725,000 | 0 |
RSUs granted (in shares) | 589,000 | 761,500 |
RSUs forfeited (in shares | (36,500) | |
Outstanding ending balance (in shares) | 1,314,000 | 725,000 |
Weighted Average Fair Value (Per Share) | ||
Outstanding beginning balance (in dollars per share) | ||
RSUs granted (in dollars per share) | $ 1.97 | |
RSUs forfeited (in dollars per share) | $ 0.79 | |
Outstanding ending balance (in dollars per share) | $ 1.44 | |
Weighted Average Vesting (Years) | 2 years 6 months |
LEASES - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets: | ||
Right of Use Asset - Operating Lease | $ 627 | $ 750 |
Liabilities | ||
Current | 422 | 465 |
Non-current | 233 | 316 |
Total Operating Lease Liability | $ 655 | $ 781 |
LEASES - Schedule of Lease Cost and Other Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Leases [Abstract] | ||
Operating lease cost | $ 133 | $ 89 |
Operating cash flows paid to operating leases | 126 | |
Right-of-use assets in exchange for new operating lease liabilities | $ 0 | |
Weighted-average remaining lease term — operating leases (months) | 17 years 10 months 24 days | |
Weighted-average discount rate — operating leases | 5.67% |
LEASES - Schedule of Lease Liability Maturity (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
2023 | $ 363 | |
2023 | 322 | |
Total lease payments | 685 | |
Less Imputed Interest | (30) | |
Present value of lease liabilities | $ 655 | $ 781 |
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Dec. 31, 2022 |
|
Commitments and Contingencies Disclosure [Abstract] | ||
Amounts from deferred payroll tax credits | $ 2,000 | |
Operating expenses offset | 600 | |
Deferred payroll tax credits | $ 1,442 | $ 0 |
FAIR VALUE MEASUREMENTS - Schedule Of Fair Value, Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Liabilities: | ||
Derivative liability, noncurrent | $ 491 | $ 338 |
Total Fair Value | 491 | |
Public warrants | ||
Liabilities: | ||
Derivative liability, noncurrent | 491 | |
Level 1 | ||
Liabilities: | ||
Total Fair Value | 491 | |
Level 1 | Public warrants | ||
Liabilities: | ||
Derivative liability, noncurrent | 491 | |
Level 2 | ||
Liabilities: | ||
Total Fair Value | 0 | |
Level 2 | Public warrants | ||
Liabilities: | ||
Derivative liability, noncurrent | 0 | |
Level 3 | ||
Liabilities: | ||
Total Fair Value | 0 | |
Level 3 | Public warrants | ||
Liabilities: | ||
Derivative liability, noncurrent | $ 0 |
FAIR VALUE MEASUREMENTS - Changes in Fair Value (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Changes in fair value | $ 153 | $ 0 |
Warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning balance | 338 | |
Changes in fair value | 153 | |
Ending balance | $ 491 |
NET LOSS PER SHARE - Narrative (Details) - shares |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 14, 2022 |
Mar. 31, 2022 |
---|---|---|---|---|
Earnings Per Share [Abstract] | ||||
Common stock, shares, issued (in shares) | 26,940,841 | 26,659,711 | 25,290,270 | 17,884,588 |
Common stock, shares, outstanding (in shares) | 26,940,841 | 26,659,711 | 25,290,270 | 17,884,588 |
NET LOSS PER SHARE - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Numerator: | ||
Net loss | $ (2,262) | $ (2,866) |
Denominator | ||
Weighted-average common shares outstanding - basic (in shares) | 26,803,839 | 13,571,872 |
Weighted-average common shares outstanding - diluted (in shares) | 26,803,839 | 13,571,872 |
Net loss per common share, basic (in dollars per share) | $ (0.08) | $ (0.21) |
Net loss per common share, diluted (in dollars per share) | $ (0.08) | $ (0.21) |
BENEFIT PLAN (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2023 |
Mar. 31, 2022 |
|
Postemployment Benefits [Abstract] | ||
Company matching contributions | $ 158 | $ 69 |
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