Form 8-K
8-K — PSQ Holdings, Inc.
Accession: 0001104659-26-123566
Filed: 2026-11-06
Period: 2026-11-06
CIK: 0001847064
SIC: 7310 (SERVICES-ADVERTISING)
Item: Results of Operations and Financial Condition
Item: Regulation FD Disclosure
Item: Financial Statements and Exhibits
Documents
8-K — tm2629135d2_8k.htm (Primary)
EX-99.1 — EXHIBIT 99.1 (tm2629135d2_ex99-1.htm)
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2026-11-06
2026-11-06
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psqh:RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf172.50PerShareMember
2026-11-06
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
November 6, 2026
PSQ
Holdings, Inc.
(Exact name of registrant as specified in its
charter)
Delaware
001-40457
86-2062844
(State or other jurisdiction
of incorporation)
(Commission File Number)
(I.R.S. Employer
Identification Number)
515 W Aspen Street, Suite 200C
Bozeman, Montana 59715
(Address of principal executive offices, including
zip code)
Registrant’s telephone number, including
area code: (754) 264-8701
(Former name or former address, if changed since
last report)
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:
¨ Written
communications 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
Class A
common stock, par value $0.0001 per share
PSQH
New
York Stock Exchange
Redeemable warrants, each whole warrant exercisable for 1/15 of one
share of Class A common stock at an exercise price of $172.50 per share
PSQH.WS
New
York Stock Exchange
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2
of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company x
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. ¨
Item 2.02 Results of Operations and Financial Condition.
On November 6, 2026, PSQ Holdings, Inc. (the “Company”)
issued a press release announcing its financial and operating results for the quarter ended September 30, 2026. A copy of the press release
is furnished herewith as Exhibit 99.1.
The information in Item 2.02 of this Current Report
on Form 8-K and the press release furnished as Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section,
nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”),
or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
On November 6, 2026, the Company issued the press
release described above in Item 2.02 of this Current Report on Form 8-K. The press release is attached as Exhibit 99.1 and incorporated
into this Item 7.01 by reference.
The information in this Current Report on Form
8-K under Item 7.01 is being “furnished” and not “filed” with the Securities and Exchange Commission (the “SEC”)
for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under such section. Furthermore, such information
shall not be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, unless specifically identified
as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
99.1
Press Release, dated November 6, 2026
104
Cover Page Interactive Data File (embedded within the inline XBRL document)
SIGNATURE
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
PSQ Holdings, Inc.
Date: November 6, 2026
By:
/s/ James M. Giudice
Name:
James M. Giudice
Title:
Chief Legal Officer and General Counsel
EX-99.1 — EXHIBIT 99.1
EX-99.1
Filename: tm2629135d2_ex99-1.htm · Sequence: 2
Exhibit 99.1
PSQ Holdings
Announces Third Quarter 2026 Financial Results and Reaffirms $32 Million Full-Year Revenue Outlook
· Third
Quarter Revenue Grows 67% to $7.3 million; Year-to-Date Revenue More Than Doubles to $22.6
million
· GAAP
Operating Loss Improves 66% to $3.3 million; Non-GAAP Operating Income of $0.3 million
· Third
Quarter Revenue Per Headcount Improves 243%; Year-to-Date improves 328%
· Completes
Sale of EveryLife, Concluding Exit from Consumer Brands
· Material
Weakness Remediated
BOZEMAN, MT, November 6, 2026 — PSQ Holdings, Inc.
(NYSE: PSQH) (the “Company”), a payments and financial infrastructure company, today reported financial results for the third
quarter 2026. With the sale of EveryLife completed, the Company has concluded its exit from consumer brands and now operates exclusively
in payments and financial infrastructure.
“In July, I said the results are the argument and asked
you to hold us to our numbers. The third quarter adds to that record,” said Dusty Wunderlich, Chairman and Chief Executive Officer
of PSQ Holdings. “Revenue grew 67%, operating expenses fell by half, and we delivered our second consecutive quarter of positive
non-GAAP operating income. Our operating loss and the cash we use in operations have improved every quarter this year, and cash used
in operations fell to $1.7 million from $6.1 million a year ago. With EveryLife sold, our exit from consumer brands is complete, and
every part of this company now moves money. We are reaffirming $32 million in revenue and positive non-GAAP operating income for 2026,
and we continue to work toward positive monthly operating cash flow in 2027. We add nothing back until it earns its way in.”
THIRD QUARTER 2026 HIGHLIGHTS
· Net
revenue from continuing operations, which includes the financial technology (“fintech”)
segment, for the three months ended September 30, 2026 was $7.3 million compared to
$4.4 million for the three months ended September 30, 2025, a 67% increase compared
to the prior year period.
· Operating
expense (defined as general and administrative, sales and marketing, and research and development
expense) for the three months ended September 30, 2026 decreased $5.4 million or a decrease
of 50% compared to the prior year period.
· Operating
loss for the three months ended September 30, 2026 was $3.3 million, an improvement
of $6.4 million or 66% compared to $9.7 million for the three months ended September 30,
2025.
· Net
cash used in operating activities for the three months ended September 30, 2026 was
$1.7 million, an improvement of $4.4 million or 72% compared to $6.1 million for the three
months ended September 30, 2025.
· Loss
from discontinued operations, net of tax for the three months ended September 30, 2026
was $0.1 million compared to $1.9 million for the same period in 2025.
· Net
loss for the three months ended September 30, 2026 was $4.1 million, an improvement
of $7.9 million, or 66%, compared to a net loss of $12.0 million for the three months ended
September 30, 2025.
· Loss
per share for the three months ended September 30, 2026 improved to $1.00 compared to
$3.90 for the three months ended September 30, 2025, a 74% improvement.
· Revenue
per headcount for the three months ended September 30, 2026 was $209,800 compared to
$61,179 for the three months ended September 30, 2025, an improvement of 243%. Revenue
per headcount is calculated as total revenue divided by full-time equivalent employees as
of the last day of the period.
· Non-GAAP
operating income (a non-GAAP measure) for the three months ended September 30, 2026
was $0.3 million compared to non-GAAP operating loss of $2.2 million in the prior year period,
an improvement of $2.5 million or 115%.
YEAR TO DATE 2026 HIGHLIGHTS
· Net
revenue from continuing operations, which includes the financial technology (“fintech”)
segment, for the nine months ended September 30, 2026 was $22.6 million compared to
$10.9 million for the nine months ended September 30, 2025, a 108% increase compared
to the prior year period.
· Operating
expense (defined as general and administrative, sales and marketing, and research and development
expense) for the nine months ended September 30, 2026 decreased $6.4 million or a decrease
of 23% compared to the prior year period.
· Operating
loss for the nine months ended September 30, 2026 was $14.3 million, an improvement
of $10.0 million or 41% compared to $24.2 million for the nine months ended September 30,
2025.
· Net
cash used in operating activities for the nine months ended September 30, 2026 was $8.2
million, an improvement of $9.2 million or 53% compared to $17.4 million for the nine months
ended September 30, 2025.
· Loss
from discontinued operations, net of tax for the nine months ended September 30, 2026
was $0.5 million compared to $7.2 million for the same period in 2025.
· Net
loss for the nine months ended September 30, 2026 was $16.2 million, an improvement
of $8.6 million, or 35%, compared to a net loss of $24.8 million for the nine months ended
September 30, 2025.
· Loss
per share for the nine months ended September 30, 2026 decreased to $4.29 compared to
$8.31 for the same period in 2025, a 48% improvement.
· Revenue
from continued operations per headcount for the nine months ended September 30, 2026
was $646,684 compared to $151,216 for the nine months ended September 30, 2025, an improvement
of 328%.
· Non-GAAP
operating loss (a non-GAAP measure) for the nine months ended September 30, 2026 was
$0.1 million compared to a non-GAAP operating loss of $7.8 million loss in the prior year
period, an improvement of $7.7 million or 98%.
The definitions and reconciliations of non-GAAP operating income
(loss) to GAAP operating loss are provided under the heading “Non-GAAP Financial Measures” at the end of this release.
2
MATERIAL WEAKNESS REMEDIATED
As previously disclosed, the Company reported a material weakness
in its internal control over financial reporting, first identified as of September 30, 2023, related to presentation on the statements
of cash flows. To remediate the material weakness, management expanded and enhanced its review process for complex transactions and added
accounting professionals with the requisite experience. Following testing of the design and operating effectiveness of these controls,
management concluded that the material weakness had been remediated as of September 30, 2026.
2026 OUTLOOK
The Company reaffirms its outlook for full-year 2026 net revenue from
continuing operations of
$32 million and positive non-GAAP operating income for the full year.
Through the first nine months of 2026, the Company generated net revenue from continuing operations of $22.6 million and a non-GAAP operating
loss of $0.1 million, including positive non-GAAP operating income in both the second and third quarters.
The Company expects fourth-quarter 2026 revenue to benefit from seasonal
demand, as hunting season and the holiday period typically increase consumer financing and payment volume across its core firearms and
outdoor merchant verticals. The Company also anticipates fourth-quarter contributions from loan payment processing through its relationships
with LendSuite, Dealer Cash and Roja, each announced during the third quarter, and expects these relationships to continue to build into
2027.
COMPLETION OF BRANDS SEGMENT DIVESTITURE
On November 5, 2026, the Company completed the sale of EveryLife,
its direct-to-consumer diaper and baby products brand, to FreeHold Brands, LLC (“Buyer”), for gross proceeds of $5.5 million,
including $1.0 million in cash and a $4.5 million seller note by Buyer, before transaction fees and customary adjustments. Please refer
to our Current Report on Form 8-K filed on November 5, 2026 for more information.
The Company has reported EveryLife as discontinued operations since
the third quarter of 2025, reflecting the Company's previously stated intention to divest non-core assets as it concentrates on its core
payments and financial infrastructure businesses.
FINANCIAL REVIEW
Balance Sheet & Liquidity
· As
of September 30, 2026, the Company had $6.8 million of restricted cash and cash and
cash equivalents, which included $1.2 million related to discontinued operations.
· The
Company had an outstanding principal balance of $6.8 million on its $10.0 million revolving
line of credit as of September 30, 2026. The Company draws on this credit line to fund
new consumer loan and lease originations, and repays it as those loans are collected or sold
to third parties.
3
Discontinued Operations
· Net
revenues from discontinued operations, which includes the Brands and Marketplace business
segments, for the quarter ended September 30, 2026 were $3.8 million compared to $3.9
million for the quarter ended September 30, 2025. Marketplace operations were completely
discontinued as of June 30, 2026.
· Net
revenues from discontinued operations for the nine months ended September 30, 2026 were
$11.3 million compared to $11.3 million for the nine months ended September 30, 2025.
Note: Beginning with the third quarter 2025
reporting period, both the Brands and Marketplace business segments are being shown as discontinued operations in the Company’s
financial statements. Results from discontinued operations are provided within the financial tables at the end of this release.
Third Quarter 2026 Conference Call and Webcast
Management will host a teleconference and webcast
to discuss its third quarter 2026 results today, November 6, 2026, at 9:00 a.m. EST. The conference call can be accessed live
through a link on the PSQ Holdings Investor Relations website at investors.publicsquare.com. During the webcast, the Company will
take both inbound questions received ahead of the call and questions from equity research analysts. Additionally, you can participate
in the conference call by dialing (833) 461-5787 domestically or (585) 542-9983 internationally, and referencing meeting ID #689559803.
Attendees should log in to the webcast or dial in approximately 15 minutes before the start time of the call.
About PSQ Holdings, Inc.
PSQ Holdings (NYSE: PSQH) is a payments and financial infrastructure
company. We build and operate financial infrastructure in highly regulated environments for industries underserved by traditional financial
institutions, including businesses, campaigns, and nonprofits that depend on reliable, compliant payment solutions. For more information,
visit publicsquare.com.
4
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and for purposes of the “safe harbor” provisions under the United States Private Securities Litigation Reform Act
of 1995. Any statements other than statements of historical fact contained herein are forward-looking statements. Such forward-looking
statements include, but are not limited to, expectations, hopes, beliefs, intentions, plans, prospects, financial results or strategies
regarding PublicSquare, anticipated product launches, our products and markets, future financial condition, expected future performance
and market opportunities of PublicSquare. Forward-looking statements generally are identified by the words “anticipate,”
“could,” “expect,” “future,” “intend,” “may,” “might,” “strategy,”
“target,” “opportunity,” “plan,” “possible,” “potential,” “project,”
“predict,” “should,” “will,” “would,” “will be,” “will continue,”
“will likely result,” and similar expressions, and in this press release, include statements about our expected net revenue,
non-GAAP operating income, revenue growth, operating expenses, anticipated growth, ability to achieve profitability, and our outlook;
however, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions,
projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject
to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in
this communication, including, without limitation: (i) unforeseen liabilities, future capital expenditures, revenues, expenses,
earnings, synergies, economic performance, indebtedness, financial condition, losses, future prospects, business and management strategies
for the management, expansion and growth of our operations, (ii) changes in the competitive industries and markets in which PublicSquare
operates, variations in performance across competitors, changes in laws and regulations affecting PublicSquare’s business and changes
in the combined capital structure, (iii) the ability to implement business plans, growth, marketplace and other expectations, and
identify and realize additional opportunities, (iv) risks related to PublicSquare’s limited operating history, the rollout
and/or expansion of its business and the timing of expected business milestones, (v) risks related to PublicSquare’s potential
inability to achieve or maintain profitability and generate significant revenue, (vi) the ability to raise capital on reasonable
terms as necessary to develop its products in the timeframe contemplated by PublicSquare’s business plan, (vii) the ability
to execute PublicSquare’s anticipated business plans and strategy, (viii) the ability of PublicSquare to enforce its current
or future intellectual property, including patents and trademarks, along with potential claims of infringement by PublicSquare of the
intellectual property rights of others, (ix) actual or potential loss of key influencers, media outlets and promoters of PublicSquare’s
business or a loss of reputation of PublicSquare or reduced interest in the mission and values of PublicSquare and the segment of the
consumer marketplace it intends to serve, (x) because the payment processing and credit agreements are terminable at will without
notice, merchants that have signed agreements to use PublicSquare's payment processing services may terminate those services or otherwise
fail to utilize the services at the expected volume, (xi) the risk of economic downturn, increased competition, a changing regulatory
landscape and related impacts that could occur, (xii) the Company’s sale of its Brand segment, the anticipated use of proceeds,
and the expected benefits of the transaction, and (xiii) risks associated with the Company’s ability to execute on its plans
to reposition into a Fintech-forward business, including the Company’s pursuit of any money transmitter licenses. The foregoing
list of factors is not exhaustive. Recipients should carefully consider such factors and the other risks and uncertainties described
and to be described in PublicSquare’s public filings with the Securities and Exchange Commission. These filings identify and address
other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date they are made. Recipients are cautioned not to put undue reliance on
forward-looking statements, and PublicSquare does not assume any obligation to, nor does it intend to, update or revise these forward-looking
statements, whether as a result of new information, future events, or otherwise, except as required by law. PublicSquare gives no assurance
that PublicSquare will achieve its expectations.
Investors Contact:
investment@publicsq.com
Media Contact:
pr@publicsq.com
5
PSQ HOLDINGS, INC.
Condensed Consolidated Balance Sheets
September 30,
2026
December 31,
2025
(Unaudited)
Assets
Current assets:
Cash
and cash equivalents
$ 3,836,995
$ 14,644,384
Restricted cash
1,710,054
1,119,580
Accounts receivable,
net
1,721,867
1,630,987
Lease receivable,
net
33,600
156,516
Loans held for
investment, net of allowance for credit losses of $847,292 and $778,704 as of September 30, 2026 and December 31, 2025,
respectively
7,088,683
6,148,072
Lease merchandise, net of accumulated
depreciation of $319,232 and $938,959 as of September 30, 2026 and December 31, 2025, respectively
172,384
960,024
Interest receivable
293,294
250,450
Prepaid expenses
and other current assets
2,204,822
2,450,321
Current
assets held for sale
5,133,337
4,407,921
Total current
assets
22,195,036
31,768,255
Loans held for
investment, net of allowance for credit losses of $209,411 and $150,702 as of September 30, 2026 and December 31, 2025,
respectively, non-current
1,751,990
1,189,832
Lease merchandise,
net of accumulated depreciation of zero and $72,335 as of September 30, 2026 and December 31, 2025, respectively, non-current
—
329,463
Property and
equipment, net
110,742
187,262
Intangible assets,
net
11,617,454
14,573,323
Goodwill
10,930,978
10,930,978
Operating lease
right-of-use assets
360,159
669,356
Deposits
29,939
29,939
Total
assets
$ 46,996,298
$ 59,678,408
Liabilities
and stockholders’ equity
Current liabilities:
Revolving line
of credit
$ 6,826,285
$ 6,174,546
Accounts payable
5,223,288
5,351,651
Accrued expenses
827,589
1,205,386
Operating lease
liabilities, current portion
297,307
323,842
Current
liabilities held for sale
3,272,947
2,612,041
Total current
liabilities
16,447,416
15,667,466
Convertible promissory
notes, related party
20,000,000
20,000,000
Convertible promissory
notes
8,449,500
8,449,500
Earn-out liabilities
11,000
540,000
Warrant liabilities
246,050
1,230,250
Operating
lease liabilities
141,596
354,286
Total liabilities
45,295,562
46,241,502
Commitments
and contingencies
Stockholders’
equity
Preferred stock, $0.0001 par value;
50,000,000 authorized shares; no shares issued and outstanding as of September 30, 2026 and December 31, 2025
—
—
Class A Common Stock, $0.0001
par value; 500,000,000 authorized shares; 4,377,193 shares and 3,099,509 shares issued and outstanding as of September 30, 2026
and December 31, 2025, respectively (1)
438
310
Class C
Common Stock, $0.0001 par value; 40,000,000 authorized shares; zero and 3,213,678 shares issued and outstanding as of September 30,
2026 and December 31, 2025, respectively
—
321
Additional
paid in capital (1)
174,421,004
169,948,371
Accumulated
deficit
(172,720,706 )
(156,512,096 )
Total
stockholders’ equity
1,700,736
13,436,906
Total
liabilities and stockholders’ equity
$ 46,996,298
$ 59,678,408
(1) Results have been adjusted
to reflect the reverse stock split of the Class A Common Stock at a ratio of 1-for-15 that became effective July 13, 2026.
6
PSQ HOLDINGS, INC.
Condensed Consolidated Statements of Operations (unaudited)
For the
Three Months Ended
September 30,
For the
Nine Months Ended
September 30,
2026
2025
2026
2025
Revenues,
net
$ 7,342,985
$ 4,404,861
$ 22,633,928
$ 10,887,521
Costs and expenses:
Cost of revenue
(exclusive of depreciation and amortization expense shown below)
3,501,484
1,451,234
10,100,063
3,128,208
General and administrative
3,182,090
8,144,403
15,377,922
20,133,393
Sales and marketing
1,631,702
1,564,449
4,103,863
4,643,237
Research and
development
699,427
1,241,669
2,082,964
3,222,930
Depreciation
and amortization
1,654,962
1,699,205
5,219,215
3,973,592
Total
costs and expenses
10,669,665
14,100,960
36,884,027
35,101,360
Operating
loss
(3,326,680 )
(9,696,099 )
(14,250,099 )
(24,213,839 )
Other (expense)
income:
Other (expense)
income, net
(15,122 )
142,745
(129,243 )
886,718
Changes in fair
value of earn-out liabilities
10,000
25,000
529,000
485,000
Changes in fair
value of warrant liabilities
268,950
343,000
984,200
7,839,500
Interest
expense, net
(970,253 )
(869,643 )
(2,891,915 )
(2,606,556 )
Loss before
income taxes from continuing operations
(4,033,105 )
(10,054,997 )
(15,758,057 )
(17,609,177 )
Income
tax benefit
—
8,176
—
—
Loss from
continuing operations
(4,033,105 )
(10,046,821 )
(15,758,057 )
(17,609,177 )
Loss
from discontinued operations, net of tax
(99,477 )
(1,936,067 )
(450,553 )
(7,187,036 )
Net
loss
$ (4,132,582 )
$ (11,982,888 )
$ (16,208,610 )
$ (24,796,213 )
Continuing
operations loss per common share, basic and diluted (1)
$ (0.98 )
$ (3.27 )
$ (4.17 )
$ (5.90 )
Discontinued
operations loss per common share, basic and diluted (1)
$ (0.02 )
(0.63 )
$ (0.12 )
(2.41 )
Net
loss per common share, basic and diluted (1)
$ (1.00 )
$ (3.90 )
$ (4.29 )
$ (8.31 )
Weighted
average shares outstanding, basic and diluted (1)
4,097,503
3,069,670
3,780,630
2,984,024
(1) Results have been adjusted
to reflect the reverse stock split of the Class A Common Stock at a ratio of 1-for-15 that became effective July 13, 2026.
7
PSQ HOLDINGS, INC.
Condensed Consolidated Statements of Cash Flows (unaudited)
For the
Nine Months Ended
September 30,
2026
2025
Cash flows from Operating Activities
Net loss
$ (16,208,610 )
$ (24,796,213 )
Adjustment to reconcile net loss to net cash used in operating
activities:
Changes in fair value of warrant liabilities
(984,200 )
(7,839,500 )
Changes in fair value of earn-out liabilities
(529,000 )
(485,000 )
Share-based compensation
2,955,032
7,975,726
Impairment of right-of-use asset
73,737
—
Amortization of step-up in loans held
for investment
—
169,607
Provision for credit losses on loans
held for investment
849,967
616,842
Origination of loans and leases for
resale
(37,917,229 )
(20,534,393 )
Proceeds from sale of loans and leases
for resale
44,122,754
22,792,178
Gain on sale of loans and leases
(6,205,525 )
(2,257,785 )
(Recovery)/Impairment of lease merchandise
(83,711 )
218,196
Loss on disposal of furniture
8,559
—
Depreciation and amortization
5,219,215
4,700,376
Non-cash operating lease expense
235,460
181,183
Changes in operating assets and liabilities:
Accounts receivable
(88,654 )
13,151
Lease receivable
122,916
(172,444 )
Interest receivable
(42,844 )
101,728
Inventory
297,835
(55,683 )
Prepaid expenses and other current
assets
57,024
(201,005 )
Deposits
28,243
(31,503 )
Accounts payable
898,276
170,879
Accrued expenses
(518,760 )
464,635
Deferred revenue
(224,770 )
1,785,853
Operating lease
liabilities
(239,225 )
(185,799 )
Net cash used in operating activities
(8,173,510 )
(17,368,971 )
Cash flows from Investing Activities
Disposals/(Additions) to lease merchandise,
net of (additions) and disposals
539,336
(3,413,454 )
Software development costs
(1,533,907 )
(2,302,514 )
Principal paydowns on loans held for
investment
19,544,908
13,287,697
Disbursements for loans held for investment
(21,897,644 )
(14,832,026 )
Purchase of licenses
—
(455,000 )
Net cash used in investing activities
(3,347,307 )
(7,715,297 )
Cash flows from Financing Activities
Proceeds from revolving line of credit
11,444,583
7,792,305
Repayments on revolving line of credit
(10,792,844 )
(7,010,741 )
Net proceeds from private equity transaction
1,268,909
—
Proceeds from issuance of common stock
at-the-market offering
248,733
361,528
Cash paid for stock issuance costs
—
(312,059 )
Other financing
activities, net
(234 )
—
Net cash provided by financing activities
2,169,147
831,033
Net decrease in cash, cash equivalents and restricted cash
(9,351,670 )
(24,253,235 )
Cash, cash equivalents and restricted
cash, beginning of period
16,117,319
36,589,607
Cash, cash equivalents and restricted
cash, end of the period
$ 6,765,649
$ 12,336,372
Cash and cash equivalents from continued
operations
$ 3,836,995
$ 10,604,527
Restricted cash from continued operations
1,710,054
426,766
Cash and cash
equivalents from discontinued operations
1,218,600
1,305,079
Total cash, cash equivalents and
restricted cash, end of the period
$ 6,765,649
$ 12,336,372
Supplemental Cash Flow Information
Cash paid for interest for convertible
notes and revolving line of credit
$ 2,891,915
$ 2,606,556
Supplemental disclosure of noncash investing and financing
activities:
Issuance of common shares in connection
with the asset acquisition
$ —
$ 4,500,000
Earnout liability generated by asset
acquisition
$ —
$ 550,000
Operating lease right-of-use asset
obtained in exchange for operating lease liability
$ —
$ 652,410
Accrued variable compensation settled
with RSU grants
$ —
$ 597,397
Cash flows from discontinued operations are included
in the above amounts.
8
Discontinued Operations
The following table summarizes the key components
of the operating results of the discontinued operations within the Condensed Consolidated Statements of Operations for the three months
ended September 30, 2026 and 2025:
For the
three months
ended September 30, 2026
For the
three months
ended September 30, 2025
Marketplace
Brands
Marketplace
Brands
Revenues, net
$ —
$ 3,832,806
$ 192,005
$ 3,732,089
Cost of revenues (exclusive of depreciation and amortization
shown below)
—
—
84,680
—
Cost of goods sold (exclusive of depreciation and amortization
shown below)
—
2,730,560
—
2,578,920
Operating costs
—
1,147,237
1,200,717
1,888,285
Depreciation and amortization
—
—
95,884
11,675
Operating loss
—
(44,991 )
(1,189,276 )
(746,791 )
Other expense, net
—
(54,486 )
—
—
Income tax expense
—
—
—
—
Loss from discontinued operations,
net of tax
$ —
$ (99,477 )
$ (1,189,276 )
$ (746,791 )
The following table summarizes the key components
of the operating results of the discontinued operations within the Condensed Consolidated Statements of Operations for the nine months
ended September 30, 2026 and 2025:
For the
nine months
ended September 30, 2026
For the
nine months
ended September 30, 2025
Marketplace
Brands
Marketplace
Brands
Revenues, net
$ 90,284
$ 11,172,231
$ 939,650
$ 10,334,271
Cost of revenues (exclusive of depreciation and amortization
shown below)
743
—
286,188
527
Cost of goods sold (exclusive of depreciation and amortization
shown below)
1,344
7,869,987
11,951
6,871,532
Operating costs
44,653
3,607,851
4,194,431
6,346,913
Depreciation and amortization
—
—
645,059
81,725
Operating income/(loss)
43,544
(305,607 )
(4,197,979 )
(2,966,426 )
Other expense, net
(15,000 )
(173,490 )
(22,631 )
—
Income tax expense
—
—
—
—
Income/(Loss) from discontinued
operations, net of tax
$ 28,544
$ (479,097 )
$ (4,220,610 )
$ (2,966,426 )
9
Assets and liabilities of segments classified
as held for sale in the Condensed Consolidated Balance Sheets as of September 30, 2026 and December 31, 2025, consist of the
following:
September 30,
2026
December 31,
2025
Assets
Current assets:
Cash and cash equivalents
$ 1,218,600
$ 353,355
Accounts receivable, net
70,146
72,372
Inventory
2,367,368
2,665,203
Prepaid expenses and other current
assets
404,461
215,986
Intangible assets, net
1,072,762
1,072,762
Deposits
—
28,243
Total assets held for sale
$ 5,133,337
$ 4,407,921
Liabilities
Current liabilities:
Accounts payable
$ 1,881,529
$ 854,889
Accrued expenses
216,219
357,183
Deferred revenue
1,175,199
1,399,969
Total liabilities held for sale
$ 3,272,947
$ 2,612,041
The cash flows related to the discontinued operations
have not been segregated and are included in the Condensed Consolidated Statements of Cash Flows. The following table presents cash flow
for the discontinued segments.
For the
Nine Months Ended
September 30,
2026
2025
Net cash provided by/(used in) operating activities
$ 701,259
$ (4,705,036 )
Net cash used in investing activities
$ —
$ (347,596 )
10
Non-GAAP Financial Measures
The non-GAAP financial measures below have not been calculated in
accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as
a substitute for, or superior to, GAAP results. We caution investors that non-GAAP financial information, by its nature, departs from
traditional accounting conventions. Therefore, its use can make it difficult to compare our current results with our results from other
reporting periods and with the results of other companies.
Our management uses these non-GAAP financial measures, in conjunction
with GAAP financial measures, as an integral part of managing our business and to, among other things: (i) monitor and evaluate
the performance of our business operations and financial performance; (ii) facilitate internal comparisons of the historical operating
performance of our business operations; (iii) facilitate external comparisons of the results of our overall business to the historical
operating performance of other companies that may have different capital structures and debt levels; (iv) review and assess the
operating performance of our management team; (v) analyze and evaluate financial and strategic planning decisions regarding future
operating investments; and (vi) plan for and prepare future annual operating budgets and determine appropriate levels of operating
investments.
For the periods presented, we define non-GAAP operating income/(loss)
as GAAP operating loss, adjusted to exclude, as applicable, certain expenses as presented in the table below:
For the
Three Months
Ended September 30,
For the
Nine Months
Ended September 30,
2026
2025
2026
2025
Reconciliation:
GAAP operating loss
$ (3,326,680 )
$ (9,696,099 )
$ (14,250,099 )
$ (24,213,839 )
Non-GAAP adjustments:
Corporate costs not allocated to segments
(1,654,160 )
(1,383,073 )
(5,939,850 )
(4,463,229 )
Share-based compensation expense
(355,861 )
(4,422,742 )
(2,955,032 )
(7,975,726 )
Depreciation and amortization
(1,654,962 )
(1,699,205 )
(5,219,215 )
(3,973,592 )
Non-GAAP operating income/(loss)
$ 338,303
$ (2,191,079 )
$ (136,002 )
$ (7,801,292 )
For the
three months
ended September 30,
2026
2025
Revenue per headcount:
$ 209,800
$ 61,179
For the
nine months
ended September 30,
2026
2025
Revenue per headcount:
$ 646,684
$ 151,216
11
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