v3.26.1
Liquidity
12 Months Ended
Dec. 31, 2025
Liquidity [Abstract]  
Liquidity Liquidity
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realizations of assets and the satisfaction of liabilities in the normal course of business.
Historically, the Company’s primary sources of liquidity have been proceeds from equity and debt financings. The Company incurred net losses of $36.6 million and $57.7 million for the years ended December 31, 2025 and 2024, respectively, and had negative cash flows from operations of $19.9 million and $34.1 million for the years ended December 31, 2025 and 2024, respectively.
As of December 31, 2025 and 2024, the Company had cash and cash equivalents, restricted cash, and cash and cash equivalents from discontinued operations of $16.1 million and $36.6 million, respectively, and net working capital of $16.1 million and $38.2 million, respectively.
The Company’s Board of Directors and executive team have outlined a plan which reflects the strategic shift to focus exclusively on FinTech operations to improve the Company’s cash position and involves a variety of cash management initiatives. The operations plan includes stronger revenues and margin run rate derived from the investments made throughout 2025. This plan is supported by a strong FinTech performance during the last half of 2025 which has continued into 2026. The cash management initiatives include the discontinuation of its brands and marketplace segments, reducing corporate operating expenses, a staff reduction of 35% which occurred from September 2025 through February 2026 and future planned reductions of 19% occurring from March 2026 through June 2026. In addition, the Company is working to terminate and or reduce contractor and consulting agreements. These executed and planned reductions that started in quarter four of 2025 are expected to result in annualized cash savings of approximately $8.0 million. Additionally, the plan considers further options such as completing a sale of EveryLife, amending the terms of the existing credit facility to access additional financing, and evaluating other areas to reduce compensation and costs if necessary.
In addition, the Company has an at-the-market equity offering program pursuant to which it may offer and sell shares of its Class A common stock, $0.0001 par value per share, of the Company (the “Class A Common Stock”) from time to time, with $48.8 million in shares remaining available for issuance and sale under the program as of December 31, 2025.
The Company’s future capital requirements will depend on many factors including the Company’s revenue growth rate and the availability of its credit facility. In order to finance these opportunities, the Company may need to raise additional financing. While there can be no assurances, the Company may need to pursue issuances of additional equity raises and debt rounds of financing. If additional financing is required from outside sources, the Company may not be able to raise it on terms acceptable to the Company or at all. If the Company is unable to raise additional capital when desired, the Company’s business, results of operations and financial condition would be materially and adversely affected. The Company may not be able to complete the planned divestiture of EveryLife on the expected timeline, or at all, or the proceeds are less than anticipated which could adversely affect the Company's liquidity and capital resources.