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Table of Contents
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
                
to
                
 
 
DAVE INC.
(Exact name of registrant as specified in its charter)
 
 
 
Delaware
 
001-40161
 
86-1481509
(State or other jurisdiction of
incorporation or organization)
 
(Commission
File Number)
 
(I.R.S Employer
Identification No.)
750 N. San Vicente Blvd. 900W
West Hollywood, CA 90069
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (844)
857-3283
 
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
 
Trading
Symbol(s)
 
Name of each exchange
on which registered
Common Stock, par value of $0.0001 per share
 
DAVE
 
The Nasdaq Stock Market LLC
     
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share
 
DAVEW
 
The Nasdaq Stock Market LLC
Securities registered pursuant to Section 12(g) of the Act: None
 
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.    Yes  ☐    No  ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T(§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in
Rule 12b-2of
the Exchange Act.
 
Large accelerated filer      Accelerated filer  
       
Non-accelerated filer      Smaller reporting company  
       
         Emerging growth company  
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2of
the Act).    Yes  ☐    No  
As of May 5, 2022, the number of outstanding shares of Dave Inc’s Class A common stock was
 323,539,696
 
at and the number of outstanding shares of Dave Inc.’s Class V common stock was 48,450,639
 
 
 

Table of Contents
TABLE OF CONTENTS
 
  
 
5
 
Item 1.
     
 
5
 
Item 2.
     
 
39
 
Item 3.
     
 
55
 
Item 4.
     
 
56
 
  
 
57
 
Item 1.
     
 
57
 
Item 1A.
     
 
57
 
Item 2.
     
 
57
 
Item 3.
     
 
57
 
Item 4.
     
 
57
 
Item 5.
     
 
57
 
Item 6.
     
 
57
 
  
 
59
 
 
2

Table of Contents
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form
10-Q
(this “Form
10-Q”
or this “report”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are forward looking and as such are not historical facts. All statements contained in this Form
10-Q
other than statements of historical fact, including statements regarding our future results of operations, financial position, market size and opportunity, our business strategy and plans, the factors affecting our performance and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “should,” “would,” “can,” “expect,” “project,” “outlook,” “forecast,” “objective,” “plan,” “potential,” “seek,” “grow,” “target,” “if” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form
10-K
for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2022 (the “Annual Report”). Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Form
10-Q
may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Forward-looking statements contained in this Form
10-Q
involve a number of judgments, risks and uncertainties, including, without limitation, risks related to:
 
   
the ability of Dave to compete in its highly competitive industry;
 
   
the ability of Dave to keep pace with the rapid technological developments in its industry and the larger financial services industry;
 
   
the ability of Dave to manage its growth as a public company;
 
   
the ability of Dave to protect intellectual property and trade secrets;
 
   
changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business;
 
   
the ability to attract or maintain a qualified workforce;
 
   
level of product service failures that could lead Dave members (“Members”) to use competitors’ services;
 
   
investigations, claims, disputes, enforcement actions, litigation and/or other regulatory or legal proceedings;
 
   
the ability to maintain the listing of Dave Class A Common Stock on Nasdaq;
 
   
the effects of the
COVID-19
pandemic, the Russia-Ukraine war or rising inflation on Dave’s business;
 
   
the possibility that Dave may be adversely affected by other economic, business, and/or competitive factors; and
 
   
other risks and uncertainties described in this Form
10-Q,
including those described under Item 1A, “Risk Factors” of the Annual Report.
We caution you that the foregoing list of judgments, risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements may not be complete. You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
 
3

Table of Contents
Except as required by law, we do not intend to update any of these forward-looking statements after the date of this report or to conform these statements to actual results or revised expectations.
You should read this Form
10-Q
with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.
This report contains estimates, projections and other information concerning our industry, our business and the markets for our products. We obtained the industry, market and similar data set forth in this report from our own internal estimates and research and from industry research, publications, surveys and studies conducted by third parties, including governmental agencies. Information that is based on estimates, forecasts, projections, market research or similar methodologies is inherently subject to uncertainties, and actual events or circumstances may differ materially from events and circumstances that are assumed in this information. While we believe that the data we use from third parties are reliable, we have not separately verified these data. You are cautioned not to give undue weight to any such information, projections and estimates.
As a result of a number of known and unknown risks and uncertainties, including without limitation, the important factors described in Part I, Item 1A, “Risk Factors” in the Annual Report, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements.
As used in this report, the “Company,” “Dave,” “we,” “us,” “our” and similar terms refer Dave Inc. (f/k/a VPC Impact Acquisition Holdings III, Inc.) and its consolidated subsidiaries, unless otherwise noted or the context otherwise requires.
 
4

Table of Contents
Part I — Financial Information
Item 1. Financial Statements
Dave Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands; except share data)
 
 
  
As of March 31,
2022
 
 
As of December 31,
2021
 
 
  
(unaudited)
 
 
 
 
Assets
                
Current assets:
                
Cash and cash equivalents
  
$
23,569
 
 
$
32,009  
Marketable securities
  
 
278,265
 
 
 
8,226  
Member advances, net of allowance for unrecoverable advances of $16,340 and $11,995 as of March 31, 2022 and December 31, 2021, respectively
     61,813
 
 
 
49,013  
Prepaid income taxes
     1,359
 
 
 
1,381  
Deferred issuance costs
    
—  
 
 
 
5,131  
Prepaid expenses and other current assets
     10,002
 
 
 
4,443  
    
 
 
   
 
 
 
Total current assets
  
 
375,008
 
 
 
100,203
 
Property and equipment, net
  
 
849
 
 
 
685  
Lease right-of-use assets (related-party of $914 and $970 as of March 31, 2022 and December 31,
2021, respectively)
  
 
2,263
 
 
 
2,702  
Intangible assets, net
  
 
9,090
 
 
 
7,849  
Derivative asset on loans to stockholders
  
 
—  
 
 
 
35,253  
Debt facility commitment fee, long-term
  
 
117
 
 
 
131  
Restricted cash, net of current portion
  
 
447
 
 
 
363  
    
 
 
   
 
 
 
Total assets
  
$
387,774
 
 
$
147,186
 
    
 
 
   
 
 
 
Liabilities, and stockholders’ equity
                
Current liabilities:
                
Accounts payable
  
$
13,599
 
 
$
13,044  
Accrued expenses
  
 
11,609
 
 
 
13,045  
Lease liabilities, short-term (related-party of $253 and $243 as of March 31, 2022 and December 31, 2021, respectively)
  
 
1,674
 
 
 
1,920  
Legal settlement accrual
  
 
3,576
 
 
 
3,701  
Note payable
  
 
—  
 
 
 
15,051  
Credit facility
  
 
20,000
 
 
 
20,000  
Convertible debt, current
  
 
—  
 
 
 
695  
Interest payable, convertible notes, current
  
 
—  
 
 
 
25  
Other current liabilities
  
 
8,332
 
 
 
1,153  
    
 
 
   
 
 
 
Total current liabilities
  
 
58,790
 
 
 
68,634
 
Lease liabilities, long-term (related-party of $754 and $822 as of March 31, 2022 and December 31, 2021, respectively)
     754       970  
Debt facility, long-term
     35,000       35,000  
Convertible debt, long-term
     99,949      
—  
 
Warrant liabilities
     18,720       3,726  
Other
non-current
liabilities
     121       119  
    
 
 
   
 
 
 
Total liabilities
  
 
213,334
 
 
 
108,449
 
    
 
 
   
 
 
 
Commitments and contingencies (Note 13)
           
Stockholders’ equity:
                
Preferred stock, par value per share $0.0001, 10,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2022 and December 31, 2021
 
 
 
 
 
 
Class A common stock, par value per share $0.0001, 500,000,000 shares authorized; 324,245,822 and 297,094,254 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
     32
 
    30
 
Class V common stock, par value per share $0.0001, 100,000,000 shares authorized; 48,450,639 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively;
     5
 
    5
 
Treasury stock
    
–—  
 
    (5
Additional
paid-in
capital
     242,135
 
    86,796
 
Loans to stockholders
    
–—  
 
    (15,192
Accumulated deficit
     (67,732
    (32,897
    
 
 
   
 
 
 
Total stockholders’ equity
  
 
174,440
 
 
 
38,737
 
    
 
 
   
 
 
 
Total liabilities, and stockholders’ equity
  
$
387,774
 
 
$
147,186
 
    
 
 
   
 
 
 
See accompanying notes to the condensed consolidated financial statements.
 
5

Dave Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands)
(unaudited)
 
    
For the Three Months Ended
 
    
March 31, 2022
   
March 31, 2021
 
Operating revenues:
                
Service based revenue, net
   $ 39,268     $ 32,418  
Transaction based revenue, net
     3,283       2,008  
    
 
 
   
 
 
 
Total operating revenues, net
  
 
42,551
 
 
 
34,426
 
    
 
 
   
 
 
 
Operating expenses:
                
Provision for unrecoverable advances
     13,785       3,538  
Processing and servicing fees
     6,543       5,220  
Advertising and marketing
     12,204       14,040  
Compensation and benefits
     17,894       9,384  
Other operating expenses
     14,798       12,577  
    
 
 
   
 
 
 
Total operating expenses
  
 
65,224
 
 
 
44,759
 
    
 
 
   
 
 
 
Other (income) expenses:
                
Interest income
     (13     (70
Interest expense
     1,555       277  
Legal settlement and litigation expenses
              368  
Other strategic financing and transactional expenses
     961       108  
Changes in fair value of derivative asset on loans to stockholders
     5,572       (17,146
Changes in fair value of warrant liabilities
     4,065       2,186  
    
 
 
   
 
 
 
Total other (income) expense, net
  
 
12,140
 
 
 
(14,277
    
 
 
   
 
 
 
Net (loss) income before provision (benefit) for income taxes
  
 
(34,813
 
 
3,944
 
Provision (benefit) for income taxes
     22       (8
    
 
 
   
 
 
 
Net (loss) income
  
$
(34,835
 
$
3,952
 
    
 
 
   
 
 
 
Net (loss) income per share:
                
Basic
   $ (0.10   $ 0.00  
Diluted
   $ (0.10   $ 0.00  
Weighted-average shares used to compute net (loss) income per share
                
Basic
     361,939,372       133,243,614  
Diluted
     361,939,372       340,910,349  
See accompanying notes to the condensed consolidated financial statements.
 
6

Table of Contents
Dave Inc. and Subsidiaries
Condensed Consolidated Statement of Stockholders’ Equity
(in thousands, except share data)
(unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Series A

convertible

preferred stock
 
 
Series
B-1

convertible

preferred stock
 
 
Series B-2

convertible

preferred stock
 
 
Common stock
 
 
Class A
 
 
Class V
 
 
Additional

paid-in

capital
 
 
Loans to

stockholders
 
 
Treasury

stock
 
 
Accumulated

deficit
 
 
Total

stockholders’

equity
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
Balance at January 1, 2022 (as previously reported)
  
 
133,216,940
 
 
$
9,881
 
 
 
13,326,050
 
 
$
49,675
 
 
 
3,991,610
 
 
$
12,617
 
 
 
104,022,678
 
 
$
0.1
 
 
 
—  
 
 
$
—  
 
 
 
—  
 
  
$
—  
 
  
$
14,658
 
 
$
(15,192
 
 
(5
 
$
(32,897
 
$
(33,436
Retroactive application of recapitalization
  
 
(133,216,940
 
 
(9,881
 
 
(13,326,050
 
 
(49,675
 
 
(3,991,610
 
 
(12,617
 
 
(104,022,678
 
 
(0.1
 
 
297,094,254
 
 
 
30
 
 
 
48,450,639
 
  
 
5
 
  
 
72,138
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
72,173
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at January 1, 2022 (as adjusted)
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
297,094,254
 
 
 
30
 
 
 
48,450,639
 
  
 
5
 
  
 
86,796
 
 
 
(15,192
 
 
(5
 
 
(32,897
 
 
38,737
 
Issuance of Class A common stock for stock option exercises
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
3,336,683
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
1,558
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
1,558
 
Issuance of Class A common stock pursuant to the PIPE financing
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
21,000,000
 
 
 
2
 
 
 
—  
 
  
 
—  
 
  
 
209,999
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
210,001
 
Issuance of Class A common stock pursuant to the Merger Agreement
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
8,351,359
 
 
 
1
 
 
 
—  
 
  
 
—  
 
  
 
(17,020
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(17,019
Exercise of Series
B-1
preferred stock warrants, net of settlement
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
450,841
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
3,365
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
3,365
 
Conversion of 2019 convertible notes and accrued interest to Class A common stock
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
225,330
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
720
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
720
 
Repurchase of Class A common stock
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(198,505
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
(1,588
 
 
—  
 
 
 
5
 
 
 
—  
 
 
 
(1,583
Exercise of warrant for Class A common stock
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
110
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
Stockholder loans interest
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
—  
 
 
 
(12
 
 
—  
 
 
 
—  
 
 
 
(12
Exercise of derivative asset and paydown of stockholder loans
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(6,014,250
 
 
(1
 
 
—  
 
  
 
—  
 
  
 
(44,885
 
 
15,204
 
 
 
—  
 
 
 
—  
 
 
 
(29,682
Stock-based compensation
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
3,190
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
3,190
 
Net loss
    
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
(34,835
 
 
(34,835
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at March 31, 2022
  
 
—  
 
 
$
—  
 
 
 
—  
 
 
$
—  
 
 
 
—  
 
 
$
—  
 
 
 
—  
 
 
$
—  
 
 
 
324,245,822
 
 
 
32
 
 
 
48,450,639
 
  
 
5
 
  
$
242,135
 
 
$
—  
 
 
$
—  
 
 
$
(67,732
 
$
174,440
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                              
Common stock
                                
    
Series A

convertible

preferred stock
   
Series
B-1

convertible

preferred stock
   
Series B-2

convertible

preferred stock
   
Common stock
   
Class A
   
Class V
    
Additional

paid-in

capital
   
Loans to

stockholders
   
Treasury

stock
   
Accumulated

deficit
   
Total

stockholders’

equity
 
    
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
   
Amount
   
Shares
    
Amount
 
Balance at January 1, 2021 (as previously reported)
  
 
133,216,940
 
 
$
9,881
 
 
 
13,326,050
 
 
$
49,675
 
 
 
3,991,610
 
 
$
12,617
 
 
 
100,223,194
 
 
$
0.1
 
 
 
—  
 
 
$
—  
 
 
$
—  
 
  
 
—  
 
  
$
5,493
 
 
$
(14,764
 
$
(154
 
$
(12,904
 
$
(22,329
Retroactive application of recapitalization
  
 
(133,216,940
 
 
(9,881
 
 
(13,326,050
 
 
(49,675
 
 
(3,991,610
 
 
(12,617
 
 
(100,223,194
 
 
(0.1
 
 
291,948,352
 
 
 
29
 
 
 
48,450,639
 
  
 
5
 
  
 
72,139
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
72,173
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at January 1, 2021 (as adjusted)
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
291,948,352
 
 
 
29
 
 
 
48,450,639
 
  
 
5
 
  
 
77,632
 
 
 
(14,764
 
 
(154
 
 
(12,904
 
 
49,844
 
Issuance of common stock for stock option exercises
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
1,427,875
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
599
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
599
 
Stockholder loans interest
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
—  
 
 
 
(68
 
 
—  
 
 
 
—  
 
 
 
(68
Stock-based compensation
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
1,690
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
1,690
 
Net income
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
—  
 
  
 
—  
 
  
 
—  
 
 
 
—  
 
 
 
—  
 
 
 
3,952
 
 
 
3,952
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
Balance at March 31, 2021
  
 
—  
 
 
$
—  
 
 
 
—  
 
 
$
—  
 
 
 
—  
 
 
$
—  
 
 
 
—  
 
 
$
—  
 
 
 
293,376,227
 
 
$
29
 
 
 
48,450,639
 
  
$
5
 
  
$
79,921
 
 
$
(14,832
 
$
(154
 
$
(8,952
 
$
56,017
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
   
 
 
    
 
 
    
 
 
   
 
 
   
 
 
   
 
 
   
 
 
 
See accompanying notes to the condensed consolidated financial statements.
 
7

Dave Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
For the Three Months Ended March 31,
 
 
 
2022
 
 
2021
 
Operating activities
                
Net (loss) income
  
$
(34,835
 
$
3,952  
Adjustments to reconcile net (loss) income to net cash used in operating activities:
  
 
 
 
 
 
 
 
Depreciation and amortization
  
 
1,158
 
 
 
2,812
 
Provision for unrecoverable advances
  
 
13,785
 
 
 
3,538
 
Changes in fair value of derivative assets
  
 
5,572
 
 
 
(17,146
Changes in fair value of warrant liabilities
  
 
4,065
 
 
 
2,186
 
Stock-based compensation
  
 
3,190
 
 
 
1,694
 
Non-cash
interest
  
 
(63
 
 
(68
Non-cash
lease expense
  
 
(23
 
 
(2
Changes in fair value of marketable securities
  
 
76
 
 
 
(2
Changes in operating assets and liabilities:
  
 
 
 
 
 
 
 
Member advances
  
 
(26,585
 
 
4,987
 
Prepaid income taxes
  
 
22
 
 
 
788
 
Prepaid expenses and other current assets
  
 
(4,847
 
 
(497
Accounts payable
  
 
2,489
 
 
 
238
 
Accrued expenses
  
 
(1,039
 
 
1,609
 
Income taxes payable
  
 
  
 
 
 
  
 
Legal settlement accrual
  
 
(125
 
 
  
 
Other current liabilities
  
 
(321
 
 
(1,450
Other
non-current
liabilities
  
 
2
 
 
 
(23
Interest payable, convertible notes
  
 
  
 
 
 
3
 
    
 
 
   
 
 
 
Net cash (used in) provided by operating activities
  
 
(37,479
 
 
2,619
 
    
 
 
   
 
 
 
Investing activities
  
 
 
 
 
 
 
 
Payments for internally developed software costs
  
 
(2,258
 
 
(3,298
Purchase of property and equipment
  
 
(228
 
 
(5
Purchase of marketable securities
  
 
(302,115
 
 
(2
Sale of marketable securities
  
 
32,000
 
 
 
3,915
 
    
 
 
   
 
 
 
Net cash (used in) provided by investing activities
  
 
(272,601
 
 
610
 
    
 
 
   
 
 
 
Financing activities
  
 
 
 
 
 
 
 
Repayment on line of credit
  
 
  
 
 
 
(3,910
Proceeds from PIPE offering
  
 
195,000
 
 
 
  
 
Proceeds from escrow account, net of redemptions
  
 
29,688
 
 
 
  
 
Payment of issuance costs
 
 
(22,944
 
 
(120
Proceeds from issuance of common stock for stock option exercises
  
 
1,563
 
 
 
599
 
Repurchase of common stock
  
 
(1,583
 
 
  
 
Proceeds from borrowings on convertible debt
  
 
100,000
 
 
 
  
 
Proceeds from borrowings on debt and credit facilities
  
 
  
 
 
 
19,000
 
    
 
 
   
 
 
 
Net cash provided by financing activities
  
 
301,724
 
 
 
15,569
 
    
 
 
   
 
 
 
Net (decrease) increase in cash and cash equivalents and restricted cash
  
 
(8,356
 
 
18,798  
Cash and cash equivalents and restricted cash, beginning of the period
  
 
32,372
 
 
 
5,069  
    
 
 
   
 
 
 
Cash and cash equivalents and restricted cash, end of the period
  
$
24,016
 
 
$
23,867
 
    
 
 
   
 
 
 
Supplemental disclosure of
non-cash
investing and financing activities:
  
 
 
 
 
 
 
 
Conversion of convertible preferred stock to Class A common stock in connection with the reverse recapitalization
  
$
72,173
 
 
$
  
 
Recapitalization transaction costs liability incurred
  
$
7,500
 
 
$
  
 
Conversion of convertible notes and accrued interest to Class A common stock in connection with the reverse recapitalization
  
$
720
 
 
$
  
 
Conversion of
B-1
Warrants to Class A common stock in connection with the reverse recapitalization
  
$
3,365
 
 
$
  
 
Discharge of PIPE promissory note in connection with the reverse recapitalization
  
$
15,000
 
 
$
  
 
Supplemental disclosure of cash (received) paid for:
  
 
 
 
 
 
 
 
Income taxes
  
$
(2
 
$
(776
Interest
  
$
1,392
 
 
$
269
 
The following table provides a reconciliation of cash and cash equivalents, and restricted cash reported within the condensed consolidated balance sheet with the same as shown in the condensed consolidated statement of cash flows.
                
Cash and cash equivalents
  
$
23,569
 
 
$
23,438  
Restricted cash
  
 
447
 
 
 
429  
    
 
 
   
 
 
 
Total cash, cash equivalents, and restricted cash, end of period
  
$
24,016
 
 
$
23,867
 
    
 
 
   
 
 
 
See accompanying notes to the condensed consolidated financial statements.
 
8

Note 1 Organization and Nature of Business
Overview
Dave Inc. (“Dave” or the “Company”), a Delaware corporation, with headquarters located in West Hollywood, California, is a financial services company. Dave was originally incorporated in the State of Delaware on January 14, 2021 as a special purpose acquisition company under the name VPC Impact Acquisition Holdings III, Inc. (“VPCC”) and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more business.
Dave offers a suite of innovative financial products aimed at helping Members improve their financial health. The Company’s budgeting tool helps Members manage their upcoming bills to avoid overspending. To help Members avoid punitive overdraft fees and access short-term liquidity, Dave offers cash advances through its flagship 0% interest ExtraCash product. Dave also helps Members generate extra income for spending or emergencies through Dave’s Side Hustle product, where Dave presents Members with supplemental work opportunities. Through Dave Banking, the Company provides a modern checking account experience with valuable tools for building long-term financial health.
Insights:
As spending and earning dynamics have become more complex over time, the Company offers a personal financial management tool to support Members with budgeting, wherever someone banks. These insights help people to manage their income and expenses between paychecks, helping them to spend and save in a smarter way and avoid liquidity jams that may cause them to overdraft.
ExtraCash: