(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||||||||||||||
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||||||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||||||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | |||||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Exhibit No. | Description | ||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
BAKKT HOLDINGS, INC. | |||||||||||
By: | /s/ Marc D'Annunzio | ||||||||||
Name: | Marc D’Annunzio | ||||||||||
Title: | General Counsel and Secretary |
$ in millions | 4Q23 | 4Q22 | Increase/ (decrease) | ||||||||
Total revenues | $214.5 | $15.9 | N.M. | ||||||||
Crypto costs and execution, clearing and brokerage fees | 197.8 | 0.3 | N.M. | ||||||||
Goodwill, intangible and long-lived assets impairments | 67.4 | 285.9 | (76%) | ||||||||
Operating expenses, excluding crypto costs, execution, clearing and brokerage fees and goodwill, intangible and long-lived assets impairments | 27.8 | 61.7 | (55%) | ||||||||
Total operating expenses | 293.0 | 347.9 | (16%) | ||||||||
Operating loss | (78.5) | (332.0) | (76%) | ||||||||
Net loss | (78.7) | (326.4) | (76%) | ||||||||
Adjusted EBITDA loss (non-GAAP) | $(19.0) | $(30.5) | (38%) |
$ in millions | FY23 | FY22 | Increase/ (decrease) | ||||||||
Total revenues | $780.1 | $56.2 | N.M. | ||||||||
Crypto costs and execution, clearing and brokerage fees | 722.3 | 1.7 | N.M. | ||||||||
Goodwill, intangible and long-lived assets impairments | 90.8 | 1,833.6 | (95%) | ||||||||
Operating expenses, excluding crypto costs, execution, clearing and brokerage fees and goodwill, intangible and long-lived assets impairments | 195.0 | 239.9 | (19%) | ||||||||
Total operating expenses | 1,008.0 | 2,075.1 | (51%) | ||||||||
Operating loss | (227.9) | (2,018.9) | (89%) | ||||||||
Net loss | (225.8) | (1,989.9) | (89%) | ||||||||
Adjusted EBITDA loss (non-GAAP) | $(93.9) | $(119.7) | (22%) |
$ in millions | 4Q23 | 4Q22 | FY23 | FY22 | |||||||||||||||||||
Net loss | $(78.7) | $(326.4) | $(225.8) | $(1,989.9) | |||||||||||||||||||
Depreciation and amortization | 3.1 | 7.0 | 13.9 | 25.4 | |||||||||||||||||||
Interest (income) expense, net | (0.8) | (1.0) | (4.3) | (1.9) | |||||||||||||||||||
Income tax expense (benefit) | 0.0 | (2.5) | 0.4 | (11.3) | |||||||||||||||||||
EBITDA | $(76.4) | $(322.9) | $(215.8) | $(1,977.8) | |||||||||||||||||||
Acquisition-related expenses | (12.8) | 4.5 | 4.3 | 5.7 | |||||||||||||||||||
Share-based and unit-based compensation expense | 1.2 | 2.9 | 16.8 | 32.1 | |||||||||||||||||||
Cancellation of common units | --- | --- | (0.0) | (0.2) | |||||||||||||||||||
Loss (gain) from change in fair value of warrant liability | 0.7 | (3.5) | 1.6 | (16.6) | |||||||||||||||||||
Goodwill and intangible assets impairments | 37.2 | 274.4 | 60.5 | 1,822.1 | |||||||||||||||||||
Impairment of long-lived assets | 30.2 | 11.5 | 30.3 | 11.5 | |||||||||||||||||||
Restructuring expenses | 0.1 | 2.3 | 4.6 | 2.3 | |||||||||||||||||||
Transition services expense | 0.8 | 0.3 | 3.9 | 1.2 | |||||||||||||||||||
Adjusted EBITDA loss | $(19.0) | $(30.5) | $(93.9) | $(119.7) | |||||||||||||||||||
FY 2024E | |||||||||||
$ in millions | Low | High | |||||||||
Net cash used in operating activities | ($58) | ($72) | |||||||||
Capex | (4) | (4) | |||||||||
Interest income, net | (3) | (3) | |||||||||
Free Cash Flow | ($65) | ($79) |
$ in millions | As of 12/31/23 | As of 12/31/22 | ||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $52.9 | $98.3 | ||||||
Restricted cash | 31.8 | 16.5 | ||||||
Customer funds | 32.9 | 0.6 | ||||||
Available-for-sale securities | 17.4 | 141.1 | ||||||
Accounts receivable, net | 29.7 | 25.3 | ||||||
Prepaid insurance | 13.0 | 22.8 | ||||||
Safeguarding asset for crypto | 701.6 | 15.8 | ||||||
Other current assets | 3.3 | 6.1 | ||||||
Total current assets | 882.6 | 326.5 | ||||||
Property, equipment and software, net | 0.1 | 19.7 | ||||||
Goodwill | 68.0 | 15.9 | ||||||
Intangible assets, net | 2.9 | 55.8 | ||||||
Deposits with clearinghouse | 0.2 | 15.2 | ||||||
Other assets | 13.1 | 22.5 | ||||||
Total assets | $966.9 | $455.5 | ||||||
Liabilities and stockholders' equity | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $55.4 | $66.8 | ||||||
Customer funds payable | 32.9 | 0.6 | ||||||
Deferred revenue, current | 4.3 | 4.0 | ||||||
Due to related party | 3.2 | 1.2 | ||||||
Safeguarding obligation for crypto | 701.6 | 15.8 | ||||||
Other current liabilities | 4.7 | 3.8 | ||||||
Total current liabilities | 802.1 | 92.1 | ||||||
Deferred revenue, noncurrent | 3.2 | 3.1 | ||||||
Warrant liability | 2.4 | 0.8 | ||||||
Other noncurrent liabilities | 23.5 | 23.4 | ||||||
Total liabilities | 831.2 | 119.4 | ||||||
Stockholders' equity | ||||||||
Class A common stock ($0.0001 par value, 750,000,000 shares authorized, 94,845,942 shares issued and outstanding as of 12/31/23 and 80,926,843 shares outstanding as of 12/31/22) | 0.0 | 0.0 | ||||||
Class V common stock ($0.0001 par value, 250,000,000 shares authorized, 180,001,606 shares issued and outstanding as of 12/31/23 and 183,482,777 shares outstanding as of 12/31/22) | 0.0 | 0.0 | ||||||
Additional paid-in capital | 799.7 | 773.0 | ||||||
Accumulated other comprehensive loss | (0.1) | (0.3) | ||||||
Accumulated deficit | (751.3) | (676.4) | ||||||
Total stockholders' equity | 48.3 | 96.3 | ||||||
Noncontrolling interest | 87.4 | 239.8 | ||||||
Total equity | 135.7 | 336.1 | ||||||
Total liabilities and stockholders' equity | $966.9 | $455.5 |
$ in millions | 4Q23 | 4Q22 | FY23 | FY22 | ||||||||||
Revenues: | ||||||||||||||
Crypto services | $199.4 | $0.3 | $727.0 | $1.7 | ||||||||||
Loyalty services, net | 15.1 | 15.6 | 53.1 | 54.5 | ||||||||||
Total revenues | 214.5 | 15.9 | 780.1 | 56.2 | ||||||||||
Operating expenses: | ||||||||||||||
Crypto costs | 196.9 | 0.3 | 718.5 | 1.7 | ||||||||||
Execution, clearing and brokerage fees | 0.9 | --- | 3.8 | --- | ||||||||||
Compensation and benefits | 16.2 | 31.9 | 102.0 | 139.0 | ||||||||||
Professional services | 3.2 | 2.2 | 10.4 | 11.5 | ||||||||||
Technology and communication | 5.2 | 4.4 | 20.8 | 17.1 | ||||||||||
Selling, general and administrative | 11.7 | 8.4 | 33.4 | 35.4 | ||||||||||
Acquisition-related expenses | (12.8) | 4.5 | 4.3 | 5.7 | ||||||||||
Depreciation and amortization | 3.1 | 7.0 | 13.9 | 25.4 | ||||||||||
Related party expenses | 0.8 | 0.3 | 3.9 | 1.2 | ||||||||||
Goodwill and intangible assets impairments | 37.2 | 274.4 | 60.5 | 1,822.1 | ||||||||||
Impairment of long-lived assets | 30.2 | 11.5 | 30.3 | 11.5 | ||||||||||
Restructuring expenses | 0.1 | 2.3 | 4.6 | 2.3 | ||||||||||
Other operating expenses | 0.4 | 0.6 | 1.6 | 2.3 | ||||||||||
Total operating expenses | 293.0 | 347.9 | 1,008.0 | 2,075.1 | ||||||||||
Operating loss | (78.5) | (332.0) | (227.9) | (2,018.9) | ||||||||||
Interest income, net | 0.8 | 1.0 | 4.3 | 1.9 | ||||||||||
(Loss) gain from change in fair value of warrant liability | (0.7) | 3.5 | (1.6) | 16.6 | ||||||||||
Other expense, net | (0.3) | (1.5) | (0.2) | (0.9) | ||||||||||
Loss before income taxes | (78.7) | (328.9) | (225.4) | (2,001.3) | ||||||||||
Income tax (expense) benefit | (0.0) | 2.5 | (0.4) | 11.3 | ||||||||||
Net loss | (78.7) | (326.4) | (225.8) | (1,989.9) | ||||||||||
Less: Net loss attributable to noncontrolling interest | (52.0) | (229.1) | (151.0) | (1,411.8) | ||||||||||
Net loss attributable to Bakkt Holdings, Inc. | $(26.7) | $(97.2) | $(74.9) | $(578.1) | ||||||||||
Net loss per share attributable to Class A common stockholders | ||||||||||||||
Basic | $(0.29) | $(1.23) | $(0.84) | $(8.12) | ||||||||||
Diluted | $(0.29) | $(1.25) | $(0.84) | $(8.12) | ||||||||||
$ in millions | 4Q23 | 4Q22 | FY23 | FY22 | ||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $(78.7) | $(326.4) | $(225.8) | $(1,989.9) | ||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
Depreciation and amortization | 3.1 | 7.0 | 13.9 | 25.4 | ||||||||||
Change in fair value of contingent consideration liability | (13.1) | --- | (3.0) | --- | ||||||||||
Non-cash lease expense | 0.8 | 0.8 | 3.1 | 2.7 | ||||||||||
Share-based compensation expense | 1.2 | 2.7 | 15.5 | 31.6 | ||||||||||
Unit-based compensation expense | 0.0 | 0.2 | 1.3 | 0.6 | ||||||||||
Forfeiture and cancellation of common units | --- | --- | (0.0) | (0.2) | ||||||||||
Deferred income taxes | --- | (2.7) | --- | (11.6) | ||||||||||
Impairment of long-lived assets | 30.2 | 11.5 | 30.3 | 11.5 | ||||||||||
Goodwill and intangible assets impairments | 37.2 | 274.4 | 60.5 | 1,822.1 | ||||||||||
Loss on disposal of assets | 0.0 | 3.8 | 0.1 | 3.8 | ||||||||||
Loss (gain) from change in fair value of warrant liability | 0.7 | (3.5) | 1.6 | (16.6) | ||||||||||
Other | 0.0 | 0.1 | 0.0 | 0.3 | ||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (6.9) | (3.2) | (10.0) | (7.2) | ||||||||||
Prepaid insurance | (1.0) | (2.2) | 9.8 | 9.4 | ||||||||||
Deposits with clearinghouse | --- | --- | 15.0 | --- | ||||||||||
Accounts payable and accrued liabilities | 6.3 | 11.4 | (8.0) | 0.7 | ||||||||||
Due to related party | 1.5 | 0.3 | 2.1 | 0.6 | ||||||||||
Deferred revenue | 0.3 | (0.3) | 0.4 | (2.4) | ||||||||||
Operating lease liabilities | (0.9) | (0.1) | (3.0) | 4.2 | ||||||||||
Customer funds payable | 4.7 | --- | 32.3 | --- | ||||||||||
Other assets and liabilities | 4.6 | 2.7 | 3.4 | (2.4) | ||||||||||
Net cash used in operating activities | (10.2) | (23.7) | (60.7) | (117.6) | ||||||||||
Cash flows from investing activities: | ||||||||||||||
Capitalized internal-use software development costs and other capital expenditures | (1.5) | (8.0) | (9.4) | (30.5) | ||||||||||
Purchase of available-for-sale securities | (17.2) | (117.8) | (61.8) | (306.6) | ||||||||||
Proceeds from the maturity of available-for-sale securities | 22.6 | 90.5 | 185.8 | 165.2 | ||||||||||
Acquisition of Bumped Financial, LLC | --- | --- | (0.6) | --- | ||||||||||
Acquisition of Bakkt Crypto LLC, net of cash acquired | --- | --- | (47.9) | --- | ||||||||||
Net cash provided by (used in) investing activities | 3.8 | (35.4) | 66.0 | (172.0) | ||||||||||
Cash flows from financing activities: | ||||||||||||||
Repurchase and retirement of Class A common stock | (0.1) | (2.6) | (2.6) | (2.6) | ||||||||||
Proceeds from the exercise of warrants | --- | --- | --- | 0.0 | ||||||||||
Net cash used in financing activities | (0.1) | (2.6) | (2.6) | (2.6) | ||||||||||
Effect of exchange rate changes | 0.5 | 0.1 | 0.4 | (0.9) | ||||||||||
Net (decrease) increase in cash, cash equivalents, restricted cash, deposits and customer funds | (6.0) | (61.5) | 3.1 | (293.0) | ||||||||||
Cash, cash equivalents, restricted cash, deposits and customer funds at the beginning of the period | 124.5 | 177.0 | 115.4 | 408.4 | ||||||||||
Cash, cash equivalents, restricted cash, deposits and customer funds at the end of the period | $118.5 | $115.4 | $118.5 | $115.4 |
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