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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cash Flows (Used In) Provided By Operating Activities:    
Net (loss) income $ (6,844) $ 4,167
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:    
Amortization of deferred financing costs 615 598
Amortization of intangible assets 1,954 1,954
Reduction in carrying amount of right-of-use assets 164 137
Depreciation and amortization of property, equipment and software 253 34
Stock-based compensation 706 154
Forgiveness of Paycheck Protection Program loan   (287)
Deferred income tax expense 568 105
Loss on redemption of non-participating preferred units   590
Revaluation of tax receivable agreement liability (331)  
Loss on early termination of line of credit 300  
Provision for credit losses/bad debt expense 422 17
Changes in operating assets and liabilities:    
Accounts receivable (11,275) (18,500)
Prepaid expenses and other assets 201 307
Accounts payable 16,231 10,966
Accrued liabilities and tax receivable agreement payable (8) 2,618
Income taxes payable (140) 174
Deferred revenues (166) (801)
Operating lease liability (92) (98)
Related party payable   (71)
Net cash (used in) provided by operating activities 2,558 2,064
Cash Flows Used In Investing Activities:    
Cash paid for capitalized software and property and equipment (178) (688)
Net cash used in investing activities (178) (688)
Cash Flows Provided by (Used In) Financing Activities:    
Proceeds from note payable 3,516 4,260
Payments on term loan (677) (576)
Proceeds from lines of credit 5,000  
Payments on lines of credit (2,000) (400)
Payment of deferred financing costs (576) (525)
Proceeds from Issuance of Class A Common Stock, net of transaction costs   11,167
Acquisition and redemption of warrants, including expenses (3,540)  
Redemption of common units   (7,200)
Redemption of non-participating preferred units   (7,046)
Proceeds from options exercised 29  
Proceeds from warrants exercised 122  
Distributions to holders of LLC Units (3,185) (1,693)
Net cash provided by (used in) financing activities (1,311) (2,013)
Net (decrease) increase in cash and cash equivalents 1,069 (637)
Cash and cash equivalents, beginning of the period 4,047 4,684
Cash and cash equivalents, end of the period 5,116 4,047
Supplemental Disclosure of Cash Flow Information:    
Cash paid for taxes 361 47
Cash paid for interest 3,736 2,568
Non-cash Financing Activities:    
Property and equipment purchased included in accounts payable   19
Outside basis difference in partnership 1,536 5,270
Tax receivable agreement payable to Direct Digital Management, LLC 1,286 4,332
Tax benefit on tax receivable agreement 250 $ 823
Prepaid distributions to holders of LLC Units included in related party receivable $ 1,737