XML 52 R34.htm IDEA: XBRL DOCUMENT v3.24.3
Restatement (Unaudited) (Tables)
12 Months Ended
Dec. 31, 2023
Restatement  
Schedule of error corrections and prior period adjustments

​

​

​

​

​

​

​

​

​

​

​

​

    

March 31, 2023

​

​

As Previously

​

Restatement

​

​

​

(in thousands, except per share and share amounts)

​

Reported

    

Adjustments

    

As Restated

ASSETS

​

​

​

​

​

​

​

​

​

CURRENT ASSETS

​

​

​

​

​

​

​

​

​

Cash and cash equivalents

​

$

6,719

​

$

—

 

$

6,719

Accounts receivable, net

​

 

19,050

​

 

—

 

​

19,050

Prepaid expenses and other current assets

​

 

1,038

​

 

—

 

​

1,038

Total current assets

​

 

26,807

​

 

—

 

​

26,807

​

​

​

​

​

​

​

​

​

​

Property, equipment, and software, net

​

 

665

​

 

—

 

​

665

Goodwill

​

 

6,520

​

 

—

 

​

6,520

Intangible assets, net

​

 

13,149

​

 

—

 

​

13,149

Deferred tax asset, net

​

 

5,240

​

 

—

 

​

5,240

Operating lease right-of-use assets

​

 

757

​

 

—

 

​

757

Other long-term assets

​

 

46

​

 

—

 

​

46

Total assets

​

$

53,184

​

$

—

​

$

53,184

​

​

​

​

​

​

​

​

​

​

LIABILITIES AND STOCKHOLDERS’ EQUITY

​

 

  

​

 

  

​

 

  

CURRENT LIABILITIES:

​

 

  

​

 

  

​

 

  

Accounts payable

​

$

13,787

​

$

—

​

$

13,787

Accrued liabilities

​

 

4,674

​

 

(1,000)

​

 

3,674

Current portion of liability related to tax receivable agreement

​

 

41

​

 

—

​

 

41

Current maturities of long-term debt

​

 

819

​

 

—

​

 

819

Deferred revenues

​

 

949

​

 

—

​

 

949

Operating lease liabilities, current portion

​

 

70

​

 

—

​

 

70

Income taxes payable

​

 

183

​

 

—

​

 

183

Related party payables

​

 

1,448

​

 

—

​

 

1,448

Total current liabilities

​

 

21,971

​

 

(1,000)

​

 

20,971

​

​

​

​

​

​

​

​

​

​

Long-term debt, net of current portion and deferred financing cost

​

 

22,707

​

 

—

​

 

22,707

Economic Injury Disaster Loan

​

 

150

​

 

—

​

 

150

Liability related to tax receivable agreement, net of current portion

​

 

4,245

​

 

—

​

 

4,245

Operating lease liabilities, net of current portion

​

 

744

​

 

—

​

 

744

Total liabilities

​

 

49,817

​

 

(1,000)

​

 

48,817

​

​

​

​

​

​

​

​

​

​

COMMITMENTS AND CONTINGENCIES

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

STOCKHOLDERS’ EQUITY

​

 

  

​

 

  

​

 

  

Class A Common Stock, $0.001 par value per share, 160,000,000 shares authorized, 2,902,200 shares issued and outstanding as of March 31, 2023

​

 

3

​

 

—

​

​

3

Class B Common Stock, $0.001 par value per share, 20,000,000 shares authorized, 11,278,000 shares issued and outstanding as of March 31, 2023

​

 

11

​

 

—

​

​

11

Additional paid-in capital

​

 

8,330

​

 

(5,613)

​

​

2,717

Accumulated deficit

​

 

(4,977)

​

 

4,419

​

​

(558)

Noncontrolling interest

​

 

—

​

 

2,194

​

​

2,194

Total stockholders’ equity

​

 

3,367

​

 

1,000

​

 

4,367

Total liabilities and stockholders’ equity

​

$

53,184

​

$

—

​

$

53,184

​

​

​

​

​

​

​

​

​

​

​

​

    

June 30, 2023

​

​

As Previously

    

Restatement

    

​

​

(in thousands, except per share and share amounts)

​

Reported

​

Adjustments

​

As Restated

ASSETS

​

​

​

​

​

​

​

​

​

CURRENT ASSETS

​

​

​

​

​

​

​

​

​

Cash and cash equivalents

​

$

5,668

​

$

—

 

$

5,668

Accounts receivable, net

​

 

29,629

​

 

—

 

​

29,629

Prepaid expenses and other current assets

​

 

1,052

​

 

—

 

​

1,052

Total current assets

​

 

36,349

​

 

—

 

​

36,349

​

​

​

​

​

​

​

​

​

​

Property, equipment, and software, net

​

 

689

​

 

—

 

​

689

Goodwill

​

 

6,520

​

 

—

 

​

6,520

Intangible assets, net

​

 

12,661

​

 

—

 

​

12,661

Deferred tax asset, net

​

 

5,171

​

 

—

 

​

5,171

Operating lease right-of-use assets

​

 

714

​

 

—

 

​

714

Other long-term assets

​

 

47

​

 

—

 

​

47

Total assets

​

$

62,151

​

$

—

​

$

62,151

​

​

​

​

​

​

​

​

​

​

LIABILITIES AND STOCKHOLDERS’ EQUITY

​

 

  

​

 

  

​

 

  

CURRENT LIABILITIES

​

 

  

​

 

  

​

 

  

Accounts payable

​

$

23,358

​

$

—

​

$

23,358

Accrued liabilities

​

 

3,879

​

 

(1,000)

​

 

2,879

Liability related to tax receivable agreement, current portion

​

 

40

​

 

—

​

 

40

Current maturities of long-term debt

​

 

983

​

 

—

​

 

983

Deferred revenues

​

 

951

​

 

—

​

 

951

Operating lease liabilities, current portion

​

 

48

​

 

—

​

 

48

Income taxes payable

​

 

22

​

 

—

​

 

22

Related party payables

​

 

1,197

​

 

—

​

 

1,197

Total current liabilities

​

 

30,478

​

 

(1,000)

​

 

29,478

​

​

​

​

​

​

​

​

​

​

Long-term debt, net of current portion and deferred financing cost

​

 

22,515

​

 

—

​

 

22,515

Economic Injury Disaster Loan

​

 

150

​

 

—

​

 

150

Liability related to tax receivable agreement, net of current portion

​

 

4,246

​

 

—

​

 

4,246

Operating lease liabilities, net of current portion

​

 

742

​

 

—

​

 

742

Total liabilities

​

 

58,131

​

 

(1,000)

​

 

57,131

​

​

​

​

​

​

​

​

​

​

COMMITMENTS AND CONTINGENCIES

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

STOCKHOLDERS’ EQUITY

​

 

  

​

 

  

​

 

  

Class A Common Stock, $0.001 par value per share, 160,000,000 shares authorized, 2,988,916 shares issued and outstanding as of June 30, 2023

​

 

3

​

 

—

​

​

3

Class B Common Stock, $0.001 par value per share, 20,000,000 shares authorized, 11,278,000 shares issued and outstanding as of June 30, 2023

​

 

11

​

 

—

​

​

11

Additional paid-in capital

​

 

8,540

​

 

(5,613)

​

​

2,927

Accumulated deficit

​

 

(4,534)

​

 

4,168

​

​

(366)

Noncontrolling interest

​

 

—

​

 

2,445

​

​

2,445

Total stockholders’ equity

​

 

4,020

​

 

1,000

​

 

5,020

Total liabilities and stockholders’ equity

​

$

62,151

​

$

—

​

$

62,151

​

​

​

​

​

​

​

​

​

​

​

​

    

September 30, 2023

​

​

As Previously

    

Restatement

    

​

​

(in thousands, except per share and share amounts)

​

Reported

​

Adjustments

​

As Restated

ASSETS

​

​

​

​

​

​

​

​

​

CURRENT ASSETS

​

​

​

​

​

​

​

​

​

Cash and cash equivalents

​

$

5,482

​

$

—

​

$

5,482

Accounts receivable, net

​

 

54,638

​

 

—

​

 

54,638

Prepaid expenses and other current assets

​

 

1,427

​

 

—

​

 

1,427

Total current assets

​

 

61,547

​

 

—

​

 

61,547

​

​

​

​

​

​

​

​

​

​

Property, equipment, and software, net

​

 

625

​

 

—

​

 

625

Goodwill

​

 

6,520

​

 

—

​

 

6,520

Intangible assets, net

​

 

12,172

​

 

—

​

 

12,172

Deferred tax asset, net

​

 

5,082

​

 

—

​

 

5,082

Operating lease right-of-use assets

​

 

675

​

 

—

​

 

675

Other long-term assets

​

 

127

​

 

—

​

 

127

Total assets

​

$

86,748

​

$

—

​

$

86,748

​

​

​

​

​

​

​

​

​

​

LIABILITIES AND STOCKHOLDERS’ EQUITY

​

 

  

​

 

  

​

 

  

CURRENT LIABILITIES

​

 

  

​

 

  

​

 

  

Accounts payable

​

$

45,021

​

$

—

​

$

45,021

Accrued liabilities

​

 

4,071

​

 

(1,000)

​

 

3,071

Liability related to tax receivable agreement, current portion

​

 

41

​

 

—

​

 

41

Current maturities of long-term debt

​

 

1,146

​

 

—

​

 

1,146

Deferred revenues

​

 

1,044

​

 

—

​

 

1,044

Operating lease liabilities, current portion

​

 

50

​

 

—

​

 

50

Income taxes payable

​

 

113

​

 

—

​

 

113

Warrant liability

​

 

—

​

 

3,540

​

 

3,540

Related party payables

​

 

1,428

​

 

—

​

 

1,428

Total current liabilities

​

 

52,914

​

 

2,540

​

 

55,454

​

​

​

​

​

​

​

​

​

​

Long-term debt, net of current portion and deferred financing cost

​

 

22,324

​

 

—

​

 

22,324

Economic Injury Disaster Loan

​

 

150

​

 

—

​

 

150

Liability related to tax receivable agreement, net of current portion

​

 

4,245

​

 

—

​

 

4,245

Operating lease liabilities, net of current portion

​

 

718

​

 

—

​

 

718

Total liabilities

​

 

80,351

​

 

2,540

​

 

82,891

​

​

​

​

​

​

​

​

​

​

COMMITMENTS AND CONTINGENCIES

​

 

  

​

 

  

​

 

  

​

​

​

​

​

​

​

​

​

​

STOCKHOLDERS’ EQUITY

​

 

  

​

 

  

​

 

  

Class A Common Stock, $0.001 par value per share, 160,000,000 shares authorized, 2,991,792 shares issued and outstanding as of September 30, 2023

​

 

3

​

 

—

​

 

3

Class B Common Stock, $0.001 par value per share, 20,000,000 shares authorized, 11,278,000 shares issued and outstanding as of September 30, 2023

​

 

11

​

 

—

​

 

11

Additional paid-in capital

​

 

8,782

​

 

(9,153)

​

 

(371)

Retained earnings

​

 

(2,399)

​

 

2,604

​

 

205

Noncontrolling interest

​

 

—

​

 

4,009

​

 

4,009

Total stockholders’ equity

​

 

6,397

​

 

(2,540)

​

 

3,857

Total liabilities and stockholders’ equity

​

$

86,748

​

$

—

​

$

86,748

​

​

​

​

​

​

​

​

​

​

​

​

    

For the Three Months Ended

​

​

March 31,

​

​

As Previously

    

Restatement

    

​

​

(in thousands, except per share data)

​

Reported

​

Adjustments

​

As Restated

Revenues

 

​

  

 

​

  

 

​

  

Buy-side advertising

​

$

7,440

​

$

—

 

$

7,440

Sell-side advertising

​

 

13,783

​

​

—

 

 

13,783

Total revenues

​

 

21,223

​

 

—

 

​

21,223

​

​

​

​

​

​

​

​

​

​

Cost of revenues

​

 

  

​

 

  

 

​

  

Buy-side advertising

​

 

2,949

​

 

—

 

​

2,949

Sell-side advertising

​

 

11,841

​

 

—

 

​

11,841

Total cost of revenues

​

 

14,790

​

 

—

 

​

14,790

Gross profit

​

 

6,433

​

 

—

 

​

6,433

​

​

​

​

​

​

​

​

​

​

Operating expenses

​

 

  

​

 

  

 

​

  

Compensation, taxes and benefits

​

 

3,634

​

 

—

 

 

3,634

General and administrative

​

 

2,940

​

 

—

 

 

2,940

Total operating expenses

​

 

6,574

​

 

—

 

​

6,574

Loss from operations

​

 

(141)

​

 

—

 

​

(141)

​

​

​

​

​

​

​

​

​

​

Other income (expense)

​

 

  

​

 

  

 

​

  

Other income

​

 

50

​

 

—

 

​

50

Loss on redemption of non-participating preferred units

​

 

—

​

 

—

 

​

—

Loss on early termination of line of credit

​

 

(300)

​

 

—

 

​

(300)

Interest expense

​

 

(1,017)

​

 

—

 

​

(1,017)

Total other expense, net

​

 

(1,267)

​

 

—

 

​

(1,267)

​

​

​

​

​

​

​

​

​

​

Loss before taxes

​

 

(1,408)

​

 

—

 

​

(1,408)

Income tax (benefit)

​

 

(74)

​

 

—

 

​

(74)

Net loss

​

 

(1,334)

​

 

—

 

​

(1,334)

​

​

​

​

​

​

​

​

​

​

Net loss attributable to noncontrolling interest

​

 

—

​

 

(1,120)

 

​

(1,120)

Net loss attributable to Direct Digital Holdings, Inc.

​

$

(1,334)

​

$

1,120

​

$

(214)

​

​

​

​

​

​

​

​

​

​

Net loss per common share:

​

 

  

​

 

  

​

 

  

Basic

​

$

(0.09)

​

$

0.02

​

$

(0.07)

Diluted

​

$

(0.09)

​

$

0.02

​

$

(0.07)

​

​

​

​

​

​

​

​

​

​

Weighted-average number of shares of common stock outstanding:

​

 

  

​

 

  

​

 

  

Basic

​

 

14,576

​

 

(11,675)

​

 

2,901

Diluted

​

 

14,576

​

 

(11,675)

​

 

2,901

​

​

​

​

​

​

​

​

​

​

​

​

    

For the Three Months Ended

​

​

June 30,

​

​

As Previously

    

Restatement

    

​

​

(in thousands, except per share data)

​

Reported

​

Adjustments

​

As Restated

Revenues

 

​

  

 

​

  

 

​

  

Buy-side advertising

​

$

11,803

​

$

—

​

$

11,803

Sell-side advertising

​

 

23,601

​

 

—

​

 

23,601

Total revenues

​

 

35,404

​

 

—

​

 

35,404

​

​

​

​

​

​

​

​

​

​

Cost of revenues

​

 

  

​

 

  

​

 

  

Buy-side advertising

​

 

4,588

​

 

—

​

 

4,588

Sell-side advertising

​

 

20,743

​

 

—

​

 

20,743

Total cost of revenues

​

 

25,331

​

 

—

​

 

25,331

Gross profit

​

 

10,073

​

 

—

​

 

10,073

​

​

​

​

​

​

​

​

​

​

Operating expenses

​

 

  

​

 

  

​

 

  

Compensation, taxes and benefits

​

 

4,553

​

 

—

​

 

4,553

General and administrative

​

 

3,265

​

 

—

​

 

3,265

Total operating expenses

​

 

7,818

​

 

—

​

 

7,818

Income from operations

​

 

2,255

​

 

—

​

 

2,255

​

​

​

​

​

​

​

​

​

​

Other income (expense)

​

 

  

​

 

  

​

 

  

Other income

​

 

42

​

 

—

​

 

42

Loss on redemption of non-participating preferred units

​

 

—

​

 

—

​

 

—

Loss on early termination of line of credit

​

 

—

​

 

—

​

 

—

Interest expense

​

 

(1,028)

​

 

—

​

 

(1,028)

Total other expense, net

​

 

(986)

​

 

—

​

 

(986)

​

​

​

​

​

​

​

​

​

​

Income before taxes

​

 

1,269

​

 

—

​

 

1,269

Income tax expense

​

 

74

​

 

—

​

 

74

Net income

​

 

1,195

​

 

—

​

 

1,195

​

​

​

​

​

​

​

​

​

​

Net income attributable to noncontrolling interest

​

 

—

​

 

1,003

​

 

1,003

Net income attributable to Direct Digital Holdings, Inc.

​

$

1,195

​

$

(1,003)

​

$

192

​

​

​

​

​

​

​

​

​

​

Net income per common share:

​

 

  

​

 

  

​

 

  

Basic

​

$

0.08

​

$

(0.05)

​

$

0.03

Diluted

​

$

0.08

​

$

(0.05)

​

$

0.03

​

​

​

​

​

​

​

​

​

​

Weighted-average number of shares of common stock outstanding:

​

 

  

​

 

  

​

 

  

Basic

​

 

14,773

​

 

(11,851)

​

 

2,922

Diluted

​

 

14,834

​

 

(11,721)

​

 

3,113

​

​

​

​

​

​

​

​

​

​

​

​

    

For the Three Months Ended

​

​

September 30,

​

​

As Previously

​

Restatement

​

​

​

(in thousands, except per share data)

​

Reported

    

Adjustments

    

As Restated

Revenues

 

​

  

 

​

  

 

​

  

Buy-side advertising

​

$

7,850

​

$

—

​

$

7,850

Sell-side advertising

​

 

51,622

​

 

—

​

 

51,622

Total revenues

​

 

59,472

​

 

—

​

 

59,472

​

​

​

​

​

​

​

​

​

​

Cost of revenues

​

 

  

​

 

  

​

 

  

Buy-side advertising

​

 

3,113

​

 

—

​

 

3,113

Sell-side advertising

​

 

44,606

​

 

—

​

 

44,606

Total cost of revenues

​

 

47,719

​

 

—

​

 

47,719

Gross profit

​

 

11,753

​

 

—

​

 

11,753

​

​

​

​

​

​

​

​

​

​

Operating expenses

​

 

  

​

 

  

​

 

  

Compensation, taxes and benefits

​

 

4,747

​

 

—

​

 

4,747

General and administrative

​

 

2,512

​

 

—

​

 

2,512

Total operating expenses

​

 

7,259

​

 

—

​

 

7,259

Income from operations

​

 

4,494

​

 

—

​

 

4,494

​

​

​

​

​

​

​

​

​

​

Other income (expense)

​

 

  

​

 

  

​

 

  

Other income

​

 

83

​

 

—

​

 

83

Loss on redemption of non-participating preferred units

​

 

—

​

 

—

​

 

—

Loss on early termination of line of credit

​

 

—

​

 

—

​

 

—

Interest expense

​

 

(1,060)

​

 

—

​

 

(1,060)

Total other expense, net

​

 

(977)

​

 

—

​

 

(977)

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

 

3,517

​

 

—

​

 

3,517

Income tax expense

​

 

166

​

 

—

​

 

166

Net income

​

 

3,351

​

 

—

​

 

3,351

​

​

​

​

​

​

​

​

​

​

Net income attributable to noncontrolling interest

​

 

—

​

 

2,780

​

 

2,780

Net income attributable to Direct Digital Holdings, Inc.

​

$

3,351

​

$

(2,780)

​

$

571

​

​

​

​

​

​

​

​

​

​

Net income per share:

​

 

  

​

 

  

​

 

  

Basic

​

$

0.23

​

$

(0.14)

​

$

0.09

Diluted

​

$

0.23

​

$

(0.14)

​

$

0.09

​

​

​

​

​

​

​

​

​

​

Weighted-average number of shares of common stock outstanding:

​

 

  

​

 

  

​

 

  

Basic

​

 

14,268

​

 

(11,278)

​

 

2,990

Diluted

​

 

14,827

​

 

(11,783)

​

 

3,044

​

​

​

​

​

​

​

​

​

​

​

​

​

For the Six Months Ended

​

​

June 30,

​

​

As Previously

​

Restatement

​

​

​

(in thousands, except per share data)

    

Reported

    

Adjustments

    

As Restated

Revenues

​

​

​

​

​

​

​

​

​

Buy-side advertising

​

$

19,243

​

$

—

​

$

19,243

Sell-side advertising

​

 

37,384

​

 

—

​

​

37,384

Total revenues

​

 

56,627

​

 

—

 

​

56,627

​

​

​

​

​

​

​

​

​

​

Cost of revenues

​

​

​

​

​

​

​

​

​

Buy-side advertising

​

 

7,537

​

 

—

​

​

7,537

Sell-side advertising

​

 

32,584

​

 

—

​

​

32,584

Total cost of revenues

​

 

40,121

​

 

—

 

​

40,121

Gross profit

​

 

16,506

​

 

—

 

​

16,506

Operating expenses

​

​

​

​

​

​

​

​

​

Compensation, taxes and benefits

​

 

8,187

​

 

—

​

​

8,187

General and administrative

​

 

6,205

​

 

—

​

​

6,205

Total operating expenses

​

 

14,392

​

 

—

 

​

14,392

Income from operations

​

 

2,114

​

 

—

 

​

2,114

​

​

​

​

​

​

​

​

​

​

Other income (expense)

​

​

​

​

​

​

​

​

​

Other income

​

 

92

​

 

—

​

​

92

Loss on redemption of non-participating preferred units

​

 

—

​

 

—

​

​

—

Loss on early termination of line of credit

​

 

(300)

​

 

—

​

​

(300)

Interest expense

​

 

(2,045)

​

 

—

​

​

(2,045)

Total other expense, net

​

 

(2,253)

​

 

—

 

​

(2,253)

​

​

​

​

​

​

​

​

​

​

Loss before taxes

​

 

(139)

​

 

—

​

​

(139)

Income tax expense

​

 

—

​

 

—

​

​

—

Net loss

​

 

(139)

​

 

—

 

​

(139)

​

​

​

​

​

​

​

​

​

​

Net loss attributable to noncontrolling interest

​

 

—

​

 

(117)

 

​

(117)

Net loss attributable to Direct Digital Holdings, Inc.

​

$

(139)

​

$

117

​

$

(22)

​

​

​

​

​

​

​

​

​

​

Net loss per common share:

​

​

​

​

​

​

​

​

​

Basic

​

$

(0.01)

​

$

0.00

​

$

(0.01)

Diluted

​

$

(0.01)

​

$

0.00

​

$

(0.01)

​

​

​

​

​

​

​

​

​

​

Weighted-average number of shares of common stock outstanding:

​

​

​

​

​

​

​

​

​

Basic

​

 

14,676

​

 

(11,764)

​

 

2,912

Diluted

​

 

14,676

​

 

(11,764)

​

 

2,912

​

​

​

​

​

​

​

​

​

​

​

​

    

For the Nine Months Ended

​

​

September 30,

​

​

As Previously

​

Restatement

​

​

​

(in thousands, except per share data)

​

Reported

    

Adjustments

    

As Restated

Revenues

​

​

​

​

​

​

​

​

​

Buy-side advertising

​

$

27,093

​

$

—

​

$

27,093

Sell-side advertising

​

 

89,006

​

 

—

​

 

89,006

Total revenues

​

 

116,099

​

 

—

​

 

116,099

​

​

​

​

​

​

​

​

​

​

Cost of revenues

​

​

​

​

​

​

​

​

​

Buy-side advertising

​

 

10,650

​

 

—

​

 

10,650

Sell-side advertising

​

 

77,190

​

 

—

​

 

77,190

Total cost of revenues

​

 

87,840

​

 

—

​

 

87,840

Gross profit

​

 

28,259

​

 

—

​

 

28,259

Operating expenses

​

​

​

​

​

​

​

​

​

Compensation, taxes and benefits

​

 

12,934

​

 

—

​

 

12,934

General and administrative

​

 

8,718

​

 

—

​

 

8,718

Total operating expenses

​

 

21,652

​

 

—

​

 

21,652

Income from operations

​

 

6,607

​

 

—

​

 

6,607

​

​

​

​

​

​

​

​

​

​

Other income (expense)

​

​

​

​

​

​

​

​

​

Other income

​

 

175

​

 

—

​

 

175

Loss on early termination of line of credit

​

 

(300)

​

 

—

​

 

(300)

Loss on redemption of non-participating preferred units

​

 

—

​

 

—

​

 

—

Interest expense

​

 

(3,104)

​

 

—

​

 

(3,104)

Total other expense, net

​

 

(3,229)

​

 

—

​

 

(3,229)

​

​

​

​

​

​

​

​

​

​

Income before income taxes

​

 

3,378

​

 

—

​

 

3,378

Income tax expense

​

 

166

​

 

—

​

 

166

Net income

​

 

3,212

​

 

—

​

 

3,212

​

​

​

​

​

​

​

​

​

​

Net income attributable to noncontrolling interest

​

 

—

​

 

2,663

​

 

2,663

Net income attributable to Direct Digital Holdings, Inc.

​

$

3,212

​

$

(2,663)

​

$

549

​

​

​

​

​

​

​

​

​

​

Net income per share:

​

​

​

​

​

​

​

​

​

Basic

​

$

0.23

​

$

(0.14)

​

$

0.09

Diluted

​

$

0.22

​

$

(0.13)

​

$

0.09

​

​

​

​

​

​

​

​

​

​

Weighted-average number of shares of common stock outstanding:

​

​

​

​

​

​

​

​

​

Basic

​

 

14,216

​

 

(11,278)

​

 

2,938

Diluted

​

 

14,818

​

 

(11,738)

​

 

3,080

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands, except per share data)

    

Common Stock

    

  

​

    

  

​

    

  

​

    

  

​

​

​

Class A

​

Class B

​

  

​

​

Accumulated

​

Noncontrolling

​

Stockholders’

As Previously Reported

    

Units

    

Amount

    

Units

    

Amount

    

APIC

​

Deficit

​

Interest

​

Equity

Balance, December 31, 2022

 

3,252,764

​

$

3

 

11,278,000

​

$

11

​

$

8,224

​

$

(3,643)

​

$

—

​

$

4,595

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

94

​

 

—

​

 

—

​

 

94

Issuance of restricted stock

 

236,754

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Restricted stock forfeitures

 

(400)

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Warrants exercised

 

2,200

​

 

—

 

—

​

 

—

​

 

12

​

 

—

​

 

—

​

 

12

Net loss

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(1,334)

​

 

—

​

 

(1,334)

Balance, March 31, 2023

 

3,491,318

​

$

3

 

11,278,000

​

$

11

​

$

8,330

​

$

(4,977)

​

$

—

​

$

3,367

Adjustments

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2022

 

(352,764)

​

$

—

 

—

​

$

—

​

$

(5,613)

​

$

3,299

​

$

3,314

​

$

1,000

Issuance of restricted stock

 

(236,754)

​

 

—

 

—

​

 

—

​

 

—

​

​

—

​

​

—

​

​

—

Restricted stock forfeitures

 

400

​

 

—

 

—

​

 

—

​

 

—

​

​

—

​

​

—

​

​

—

Net loss

 

—

​

 

—

 

—

​

 

—

​

 

—

​

​

1,120

​

​

(1,120)

​

​

—

Total Adjustments

 

(589,118)

​

$

—

 

—

​

$

—

​

$

(5,613)

​

$

4,419

​

$

2,194

​

$

1,000

As Restated

 

  

​

 

  

 

  

​

 

  

​

 

​

​

​

​

​

​

​

​

​

​

Balance, December 31, 2022

 

2,900,000

​

$

3

 

11,278,000

​

$

11

​

$

2,611

​

$

(344)

​

$

3,314

​

$

5,595

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

94

​

​

—

​

​

—

​

​

94

Warrants exercised

 

2,200

​

 

—

 

—

​

 

—

​

 

12

​

​

—

​

​

—

​

​

12

Net loss

 

—

​

 

—

 

—

​

 

—

​

 

—

​

​

(214)

​

​

(1,120)

​

​

(1,334)

Balance, March 31, 2023 - As Restated

 

2,902,200

​

$

3

 

11,278,000

​

$

11

​

$

2,717

​

$

(558)

​

$

2,194

​

$

4,367

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands, except per share data)

    

Common Stock

    

​

​

​

​

​

​

​

​

​

​

​

​

​

Class A

​

Class B

​

​

​

​

Accumulated

​

Noncontrolling

​

Stockholders’

As Previously Reported

    

Units

    

Amount

    

Units

    

Amount

    

APIC

    

Deficit

    

Interest

    

Equity

Balance, March 31, 2023

 

3,491,318

​

$

3

​

11,278,000

​

$

11

​

$

8,330

​

$

(4,977)

​

$

—

​

$

3,367

Stock-based compensation

 

—

​

​

—

​

—

​

​

—

​

​

210

​

​

—

​

​

—

​

​

210

Issuance of restricted stock net of shares withheld for vested awards

 

54,277

​

​

—

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Restricted stock forfeitures

 

(25,815)

​

​

—

​

—

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Distributions to members

 

—

​

​

—

​

—

​

​

—

​

​

—

​

​

(752)

​

​

—

​

​

(752)

Net income

 

—

​

​

—

​

—

​

​

—

​

​

—

​

​

1,195

​

​

—

​

​

1,195

Balance, June 30, 2023

 

3,519,780

​

$

3

​

11,278,000

​

$

11

​

$

8,540

​

$

(4,534)

​

$

—

​

$

4,020

Adjustments

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, March 31, 2023

 

(589,118)

​

 

—

 

—

​

 

—

​

 

(5,613)

​

​

4,419

​

​

2,194

​

​

1,000

Issuance of restricted stock net of shares withheld for vested awards

 

(54,277)

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Restricted stock forfeitures

 

25,815

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Issuance related to vesting of restricted stock units, net of tax withholdings

 

86,716

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

752

​

 

(752)

​

 

—

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(1,003)

​

 

1,003

​

 

—

Total Adjustments

 

(530,864)

​

$

—

 

—

​

$

—

​

$

(5,613)

​

$

4,168

​

$

2,445

​

$

1,000

As Restated

 

  

​

 

  

 

  

​

 

  

​

 

​

​

​

​

​

​

​

​

​

​

Balance, March 31, 2023

 

2,902,200

​

$

3

 

11,278,000

​

$

11

​

$

2,717

​

$

(558)

​

$

2,194

​

$

4,367

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

210

​

 

—

​

 

—

​

 

210

Issuance related to vesting of restricted stock units, net of tax withholdings

 

86,716

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to holders of LLC Units

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

(752)

​

 

(752)

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

192

​

 

1,003

​

 

1,195

Balance, June 30, 2023 - As Restated

 

2,988,916

​

$

3

 

11,278,000

​

$

11

​

$

2,927

​

$

(366)

​

$

2,445

​

$

5,020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands, except per share data)

    

Common Stock

    

​

​

​

​

​

​

​

​

​

​

​

​

​

Class A

​

Class B

​

​

​

​

Accumulated

​

Noncontrolling

​

Stockholders’

As Previously Reported

    

Units

    

Amount

    

Units

    

Amount

​

APIC

    

Deficit

    

Interest

    

Equity

Balance, June 30, 2023

 

2,988,916

​

$

3

 

11,278,000

​

$

11

​

$

8,540

​

$

(4,534)

​

$

—

​

$

4,020

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

242

​

 

—

​

 

—

​

 

242

Issuance related to vesting of restricted stock units, net of tax withholdings

 

2,743

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Stock options exercised

 

133

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(1,216)

​

 

—

​

 

(1,216)

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

3,351

​

 

—

​

 

3,351

Balance, September 30, 2023

 

2,991,792

​

$

3

 

11,278,000

​

$

11

​

$

8,782

​

$

(2,399)

​

$

—

​

$

6,397

Adjustments

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, June 30, 2023

 

—

​

 

—

 

—

​

 

—

​

 

(5,613)

​

 

4,168

​

 

2,445

​

 

1,000

Acquisition and redemption of warrants including expenses

 

—

​

 

—

 

—

​

 

—

​

 

(3,540)

​

 

—

​

 

—

​

 

(3,540)

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

1,216

​

 

(1,216)

​

 

—

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(2,780)

​

 

2,780

​

 

—

Total Adjustments

 

—

​

$

—

 

—

​

$

—

​

$

(9,153)

​

$

2,604

​

$

4,009

​

$

(2,540)

As Restated

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, June 30, 2023

 

2,988,916

​

$

3

 

11,278,000

​

$

11

​

$

2,927

​

$

(366)

​

$

2,445

​

$

5,020

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

242

​

 

—

​

 

—

​

 

242

Issuance related to vesting of restricted stock units, net of tax withholdings

 

2,743

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Acquisition and redemption of warrants including expenses

 

—

​

 

—

 

—

​

 

—

​

 

(3,540)

​

 

—

​

 

—

​

 

(3,540)

Stock options exercised

 

133

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to holders of LLC Units

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

(1,216)

​

 

(1,216)

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

571

​

 

2,780

​

 

3,351

Balance, September 30, 2023 - As Restated

 

2,991,792

​

$

3

 

11,278,000

​

$

11

​

$

(371)

​

$

205

​

$

4,009

​

$

3,857

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands, except per share data)

    

Common Stock

    

​

​

    

​

​

    

​

​

    

​

​

​

​

Class A

​

Class B

​

​

​

​

Accumulated

​

Noncontrolling

​

Stockholders’

As Previously Reported

​

Units

    

Amount

    

Units

    

Amount

    

APIC

    

Deficit

    

Interest

    

Equity

Balance, December 31, 2022

 

3,252,764

​

$

3

 

11,278,000

​

$

11

​

$

8,224

​

$

(3,643)

​

$

—

​

$

4,595

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

304

​

 

—

​

 

—

​

 

304

Issuance of restricted stock net of shares withheld for vested awards

 

291,031

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Restricted stock forfeitures

 

(26,215)

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Warrants exercised

 

2,200

​

 

—

 

—

​

 

—

​

 

12

​

 

—

​

 

—

​

 

12

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(752)

​

 

—

​

 

(752)

Net loss

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(139)

​

 

—

​

 

(139)

Balance, June 30, 2023

 

3,519,780

​

$

3

 

11,278,000

​

$

11

​

$

8,540

​

$

(4,534)

​

$

—

​

$

4,020

Adjustments

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2022

 

(352,764)

​

 

—

 

—

​

 

—

​

 

(5,613)

​

​

3,299

​

​

3,314

​

​

1,000

Issuance of restricted stock net of shares withheld for vested awards

 

(291,031)

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Restricted stock forfeitures

 

26,215

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Issuance related to vesting of restricted stock units, net of tax withholdings

 

86,716

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

752

​

 

(753)

​

 

—

Net loss

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

117

​

 

(117)

​

 

—

Total Adjustments

 

(530,864)

​

$

—

 

—

​

$

—

​

$

(5,613)

​

$

4,168

​

$

2,445

​

$

1,000

As Restated

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2022

 

2,900,000

​

$

3

 

11,278,000

​

$

11

​

$

2,611

​

$

(344)

​

$

3,314

​

$

5,595

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

304

​

 

—

​

 

—

​

 

304

Warrants exercised

 

2,200

​

 

—

 

—

​

 

—

​

 

12

​

 

—

​

 

—

​

 

12

Issuance related to vesting of restricted stock units, net of tax withholdings

 

86,716

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to holders of LLC Units

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

(752)

​

 

(752)

Net loss

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(22)

​

 

(117)

​

 

(139)

Balance, June 30, 2023 - As Restated

 

2,988,916

​

$

3

 

11,278,000

​

$

11

​

$

2,927

​

$

(366)

​

$

2,445

​

$

5,020

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands, except per share data)

    

Common Stock

    

    

​

    

    

​

    

    

​

    

    

​

​

​

Class A

​

Class B

​

​

​

​

Accumulated

​

Noncontrolling

​

Stockholders’

As Previously Reported

    

Units

    

Amount

    

Units

    

Amount

    

APIC

    

Deficit

    

Interest

    

Equity

Balance, December 31, 2022

 

2,900,000

​

$

3

 

11,278,000

​

$

11

​

$

8,224

​

$

(3,643)

​

$

—

​

$

4,595

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

546

​

 

—

​

 

—

​

 

546

Issuance related to vesting of restricted stock units, net of tax withholdings

 

89,459

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Warrants exercised

 

2,200

​

 

—

 

—

​

 

—

​

 

12

​

 

—

​

 

—

​

 

12

Stock options exercised

 

133

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(1,968)

​

 

—

​

 

(1,968)

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

3,212

​

 

—

​

 

3,212

Balance, September 30, 2023

 

2,991,792

​

$

3

 

11,278,000

​

$

11

​

$

8,782

​

$

(2,399)

​

$

—

​

$

6,397

Adjustments

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2022

 

—

​

 

—

 

—

​

 

—

​

 

(5,613)

​

​

3,299

​

​

3,314

​

​

1,000

Acquisition and redemption of warrants including expenses

 

—

​

 

—

 

—

​

 

—

​

 

(3,540)

​

 

—

​

 

—

​

 

(3,540)

Distributions to members

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

1,968

​

 

(1,968)

​

 

—

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

(2,663)

​

 

2,663

​

 

—

Total Adjustments

 

—

​

$

—

 

—

​

$

—

​

$

(9,153)

​

$

2,604

​

$

4,009

​

$

(2,540)

As Restated

 

  

​

 

  

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Balance, December 31, 2022

 

2,900,000

​

$

3

 

11,278,000

​

$

11

​

$

2,611

​

$

(344)

​

$

3,314

​

$

5,595

Stock-based compensation

 

—

​

 

—

 

—

​

 

—

​

 

546

​

 

—

​

 

—

​

 

546

Issuance related to vesting of restricted stock units, net of tax withholdings

 

89,459

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Acquisition and redemption of warrants including expenses

 

2,200

​

 

—

 

—

​

 

—

​

 

12

​

 

—

​

 

—

​

 

12

Warrant redemption

 

—

​

 

—

 

—

​

 

—

​

 

(3,540)

​

 

—

​

 

—

​

 

(3,540)

Stock options exercised

 

133

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Distributions to holders of LLC Units

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

—

​

 

(1,968)

​

 

(1,968)

Net income

 

—

​

 

—

 

—

​

 

—

​

 

—

​

 

549

​

 

2,663

​

 

3,212

Balance, September 30, 2023 As Restated

 

2,991,792

​

$

3

 

11,278,000

​

$

11

​

$

(371)

​

$

205

​

$

4,009

​

$

3,857

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

​

For the Three Months Ended March 31, 2023

​

​

As Previously

​

Immaterial

​

​

​

​

​

Reported

​

Revisions

​

As Revised

Cash Flows Provided By Operating Activities:

    

  

​

    

  

​

    

  

​

Net loss

​

$

(1,334)

​

$

—

​

$

(1,334)

Adjustments to reconcile net loss to net cash provided by operating activities:

​

 

  

​

 

  

​

 

  

Amortization of deferred financing costs

​

 

136

​

 

—

​

 

136

Amortization of intangible assets

​

 

489

​

 

—

​

 

489

Reduction in carrying amount of right-of-use assets

​

 

42

​

 

—

​

 

42

Depreciation and amortization of property, equipment and software

​

 

57

​

 

—

​

 

57

Stock-based compensation

​

 

94

​

 

—

​

 

94

Deferred income taxes

​

 

(74)

​

 

—

​

 

(74)

Payment on tax receivable agreement

​

 

(46)

​

 

46

​

 

—

Loss on early termination of line of credit

​

 

300

​

 

—

​

 

300

Changes in operating assets and liabilities:

​

 

  

​

 

​

​

 

  

Accounts receivable

​

 

7,304

​

 

—

​

 

7,304

Prepaid expenses and other assets

​

 

(242)

​

 

—

​

 

(242)

Accounts payable

​

 

(3,909)

​

 

—

​

 

(3,909)

Accrued liabilities and TRA payable

​

 

(40)

​

 

(110)

​

 

(150)

Income taxes payable

​

 

8

​

 

—

​

 

8

Deferred revenues

​

 

403

​

 

—

​

 

403

Operating lease liability

​

 

(24)

​

 

—

​

 

(24)

Net cash provided by operating activities

​

 

3,164

​

 

(64)

​

 

3,100

​

​

​

​

​

​

​

​

​

​

Cash Flows Used In Investing Activities:

​

 

  

​

 

  

​

 

  

Cash paid for capitalized software and property and equipment

​

 

(48)

​

 

—

​

 

(48)

Net cash used in investing activities

​

 

(48)

​

 

—

​

 

(48)

​

​

​

​

​

​

​

​

​

​

Cash Flows Used In Financing Activities:

​

 

  

​

 

  

​

 

  

Payments on term loan

​

 

(164)

​

 

—

​

 

(164)

Payments of litigation settlement

​

 

(64)

​

 

64

​

 

—

Payment of deferred financing costs

​

 

(228)

​

 

—

​

 

(228)

Proceeds from warrants exercised

​

 

12

​

 

—

​

 

12

Net cash used in financing activities

​

 

(444)

​

 

64

​

 

(380)

​

​

​

​

​

​

​

​

​

​

Net increase in cash and cash equivalents

​

 

2,672

​

 

—

​

 

2,672

Cash and cash equivalents, beginning of the period

​

 

4,047

​

 

—

​

 

4,047

Cash and cash equivalents, end of the period

​

$

6,719

​

$

—

​

$

6,719

​

​

​

​

​

​

​

​

​

​

Supplemental Disclosure of Cash Flow Information:

​

 

  

​

 

  

​

 

  

Cash paid for interest

​

$

879

​

$

—

​

$

879

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

​

For the Six Months Ended June 30, 2023

​

​

As Previously

​

Immaterial

​

​

​

​

​

Reported

​

Revisions

​

As Revised

Cash Flows Provided By Operating Activities:

    

​

  

    

​

  

    

​

  

Net loss

​

$

(139)

​

$

—

​

$

(139)

Adjustments to reconcile net loss to net cash provided by operating activities:

​

​

​

​

​

​

​

​

​

Amortization of deferred financing costs

​

 

272

​

 

—

​

 

272

Amortization of intangible assets

​

 

977

​

 

—

​

 

977

Reduction in carrying amount of right-of-use assets

​

 

85

​

 

—

​

 

85

Depreciation and amortization of property, equipment and software

​

 

121

​

 

—

​

 

121

Stock-based compensation

​

 

304

​

 

—

​

 

304

Deferred income taxes

​

 

(6)

​

 

—

​

 

(6)

Payment on tax receivable agreement

​

 

(46)

​

 

46

​

 

—

Loss on early termination of line of credit

​

 

300

​

 

—

​

 

300

Bad debt expense

​

 

52

​

 

—

​

 

52

Changes in operating assets and liabilities:

​

​

​

​

​

​

​

​

​

Accounts receivable

​

 

(3,326)

​

 

—

​

 

(3,326)

Prepaid expenses and other assets

​

 

(257)

​

 

—

​

 

(257)

Accounts payable

​

 

5,662

​

 

—

​

 

5,662

Accrued liabilities and TRA payable

​

 

(769)

​

 

(175)

​

 

(944)

Income taxes payable

​

 

(152)

​

 

—

​

 

(152)

Deferred revenues

​

 

404

​

 

—

​

 

404

Operating lease liability

​

 

(48)

​

 

—

​

 

(48)

Related party payable

​

 

(251)

​

 

—

​

 

(251)

Net cash provided by operating activities

​

 

3,183

​

 

(129)

​

 

3,054

​

​

​

​

​

​

​

​

​

​

Cash Flows Used In Investing Activities:

​

​

​

​

​

​

​

​

​

Cash paid for capitalized software and property and equipment

​

 

(137)

​

 

—

​

 

(137)

Net cash used in investing activities

​

 

(137)

​

 

—

​

 

(137)

​

​

​

​

​

​

​

​

​

​

Cash Flows Used In Financing Activities:

​

​

​

​

​

​

​

​

​

Payments on term loan

​

 

(328)

​

 

—

​

 

(328)

Payments of litigation settlement

​

 

(129)

​

 

129

​

 

—

Payment of deferred financing costs

​

 

(228)

​

 

—

​

 

(228)

Proceeds from warrants exercised

​

 

12

​

 

—

​

 

12

Distributions to holders of LLC Units

​

 

(752)

​

 

—

​

 

(752)

Net cash used in financing activities

​

 

(1,425)

​

 

129

​

 

(1,296)

​

​

​

​

​

​

​

​

​

​

Net increase in cash and cash equivalents

​

 

1,621

​

 

—

​

 

1,621

Cash and cash equivalents, beginning of the period

​

 

4,047

​

 

—

​

 

4,047

Cash and cash equivalents, end of the period

​

$

5,668

​

$

—

​

$

5,668

​

​

​

​

​

​

​

​

​

​

Supplemental Disclosure of Cash Flow Information:

​

​

​

​

​

​

​

​

​

Cash paid for taxes

​

$

349

​

$

—

​

$

349

Cash paid for interest

​

$

1,769

​

$

—

​

$

1,769

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(in thousands)

​

For the Nine Months Ended September 30, 2023

​

​

As Previously

​

Restatement

​

​

​

​

Immaterial

​

​

​

​

​

Reported

​

Adjustments

​

As Restated

​

Revisions

​

As Revised

Cash Flows Provided By Operating Activities:

    

​

  

    

​

  

    

​

  

​

​

  

​

​

  

Net income

​

$

3,212

​

$

—

​

$

3,212

​

$

—

​

$

3,212

Adjustments to reconcile net income to net cash provided by operating activities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortization of deferred financing costs

​

 

435

​

 

—

​

 

435

​

 

—

​

 

435

Amortization of intangible assets

​

 

1,465

​

 

—

​

 

1,465

​

 

—

​

 

1,465

Reduction in carrying amount of right-of-use assets

​

 

124

​

 

—

​

 

124

​

 

—

​

 

124

Depreciation and amortization of property, equipment and software

​

 

185

​

 

—

​

 

185

​

 

—

​

 

185

Stock-based compensation

​

 

546

​

 

—

​

 

546

​

 

—

​

 

546

Deferred income taxes

​

 

82

​

 

—

​

 

82

​

 

—

​

 

82

Payment on tax receivable agreement

​

 

(46)

​

 

—

​

 

(46)

​

 

46

​

 

—

Loss on early termination of line of credit

​

 

300

​

 

—

​

 

300

​

 

—

​

 

300

Bad debt expense

​

 

98

​

 

—

​

 

98

​

 

—

​

 

98

Changes in operating assets and liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Accounts receivable

​

 

(28,381)

​

 

—

​

 

(28,381)

​

 

—

​

 

(28,381)

Prepaid expenses and other assets

​

 

(524)

​

 

—

​

 

(524)

​

 

—

​

 

(524)

Accounts payable

​

 

27,326

​

 

—

​

 

27,326

​

 

—

​

 

27,326

Accrued liabilities and TRA payable

​

 

(513)

​

 

—

​

 

(513)

​

 

(240)

​

 

(753)

Income taxes payable

​

 

(61)

​

 

—

​

 

(61)

​

 

—

​

 

(61)

Deferred revenues

​

 

497

​

 

—

​

 

497

​

 

—

​

 

497

Operating lease liability

​

 

(70)

​

 

—

​

 

(70)

​

 

—

​

 

(70)

Net cash provided by operating activities

​

 

4,675

​

 

—

​

 

4,675

​

 

(194)

​

 

4,481

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash Flows Used In Investing Activities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash paid for capitalized software and property and equipment

​

 

(137)

​

 

—

​

 

(137)

​

 

—

​

 

(137)

Net cash used in investing activities

​

 

(137)

​

 

—

​

 

(137)

​

 

—

​

 

(137)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash Flows Used In Financing Activities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Payments on term loan

​

 

(491)

​

 

—

​

 

(491)

​

 

—

​

 

(491)

Payments of litigation settlement

​

 

(194)

​

 

—

​

 

(194)

​

 

194

​

 

—

Payment of deferred financing costs

​

 

(442)

​

 

—

​

 

(442)

​

 

—

​

 

(442)

Proceeds from warrants exercised

​

 

12

​

 

—

​

 

12

​

 

—

​

 

12

Distributions to members

​

 

(1,988)

​

 

—

​

 

(1,988)

​

 

—

​

 

(1,988)

Net cash used in financing activities

​

 

(3,103)

​

 

—

​

 

(3,103)

​

 

194

​

 

(2,909)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net increase in cash and cash equivalents

​

 

1,435

​

 

—

​

 

1,435

​

 

—

​

 

1,435

Cash and cash equivalents, beginning of the period

​

 

4,047

​

 

—

​

 

4,047

​

 

—

​

 

4,047

Cash and cash equivalents, end of the period

​

$

5,482

​

$

—

​

$

5,482

​

$

—

​

$

5,482

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Supplemental Disclosure of Cash Flow Information:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cash paid for taxes

​

$

349

​

$

—

​

$

349

​

$

—

​

$

349

Cash paid for interest

​

$

2,667

​

$

—

​

$

2,667

​

$

—

​

$

2,667

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Non-cash Financing Activities:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Accrual of warrant redemption liability

​

$

—

​

$

3,540

​

$

3,540

​

$

—

​

$

3,540

Issuance related to vesting of restricted stock units, net of tax withholdings

​

$

90

​

$

—

​

$

90

​

$

—

​

$

90

​