ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices, including zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
☒ | Smaller reporting company | ||||||||||
Emerging growth company |
Page | |||||
Year Ended December 31, | 2023 Over 2022 Change | 2022 Over 2021 Change | ||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2023 | 2022 | 2021 | Change | % Change | Change | % Change | |||||||||||||||||||||||||||||||||||||
TRADING BUSINESS | ||||||||||||||||||||||||||||||||||||||||||||
Trades | 1,756 | 2,184 | 4,890 | (428) | (20) | % | (2,706) | (55) | % | |||||||||||||||||||||||||||||||||||
Volume | $ | 765,899 | $ | 1,222,879 | $ | 3,180,257 | $ | (456,980) | (37) | % | $ | (1,957,378) | (62) | % | ||||||||||||||||||||||||||||||
Net Take Rate | 3.3 | % | 3.3 | % | 3.3 | % | — | — | % | — | — | % | ||||||||||||||||||||||||||||||||
Marketplace revenues, less transaction-based expenses | $ | 25,359 | $ | 40,182 | $ | 104,689 | $ | (14,823) | (37) | % | $ | (64,507) | (62) | % |
December 31, 2023 | 2023 Over 2022 Change | 2022 Over 2021 Change | ||||||||||||||||||||||||||||||||||||||||||
Dollars in thousands | 2023 | 2022 | 2021 | Change | % Change | Change | % Change | |||||||||||||||||||||||||||||||||||||
CUSTODY BUSINESS | ||||||||||||||||||||||||||||||||||||||||||||
Total Custodial Accounts | 2,078,868 | 1,871,146 | 2,124,677 | 207,722 | 11 | % | (253,531) | (12) | % | |||||||||||||||||||||||||||||||||||
Assets Under Custody | $ | 15,647,469 | $ | 14,870,257 | $ | 14,334,527 | $ | 777,212 | 5 | % | $ | 535,730 | 4 | % |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Net loss attributable to Forge Global Holdings, Inc. | $ | (90,221) | $ | (111,859) | $ | (18,499) | |||||||||||
Add: | |||||||||||||||||
Interest (income) expense, net | (6,421) | (2,681) | 2,307 | ||||||||||||||
Provision for (benefit from) income taxes | 819 | 327 | 386 | ||||||||||||||
Depreciation and amortization | 6,954 | 6,026 | 5,390 | ||||||||||||||
Net loss attributable to noncontrolling interest | (1,328) | (46) | — | ||||||||||||||
Loss on impairment of long lived assets | 599 | 446 | — | ||||||||||||||
Share-based compensation expense | 34,334 | 57,924 | 12,231 | ||||||||||||||
Change in fair value of warrant liabilities | 6,465 | (19,836) | 6,064 | ||||||||||||||
Acquisition-related transaction costs(1) | — | 5,113 | 882 | ||||||||||||||
Transaction bonus(2) | — | 17,735 | — | ||||||||||||||
Adjusted EBITDA | $ | (48,799) | $ | (46,851) | $ | 8,761 | |||||||||||
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Total revenues, less transaction-based expenses | $ | 69,390 | $ | 68,900 | |||||||
Operating expenses: | |||||||||||
Compensation and benefits | 106,593 | 145,514 | |||||||||
Other | 54,246 | 58,426 | |||||||||
Total operating expenses | 160,839 | 203,940 | |||||||||
Operating loss | (91,449) | (135,040) | |||||||||
Total interest and other income (expenses) | 719 | 23,462 | |||||||||
Loss before provision for income taxes | (90,730) | (111,578) | |||||||||
Provision for income taxes | 819 | 327 | |||||||||
Net loss | (91,549) | (111,905) | |||||||||
Net loss attributable to noncontrolling interest | (1,328) | (46) | |||||||||
Net loss attributable to Forge Global Holdings, Inc. | $ | (90,221) | $ | (111,859) |
Year Ended December 31, | 2023 Over 2022 Change | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Marketplace revenue | $ | 25,790 | $ | 40,665 | $ | (14,875) | (37) | % | |||||||||||||||
Custodial administration fees | 44,031 | 28,718 | 15,313 | 53 | |||||||||||||||||||
Total revenues | 69,821 | 69,383 | 438 | 1 | |||||||||||||||||||
Transaction-based expenses: | |||||||||||||||||||||||
Transaction-based expenses | (431) | (483) | 52 | (11) | |||||||||||||||||||
Total revenues, less transaction-based expenses | $ | 69,390 | $ | 68,900 | $ | 490 | 1 | % |
Year Ended December 31, | 2023 Over 2022 Change | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Salary | $ | 53,829 | $ | 47,836 | $ | 5,993 | 13% | ||||||||||||||||
Incentive compensation and other bonus | 12,257 | 34,356 | (22,099) | (64) | |||||||||||||||||||
Share-based compensation | 34,334 | 57,924 | (23,590) | (41) | |||||||||||||||||||
Benefits and other | 6,173 | 5,398 | 775 | 14 | |||||||||||||||||||
Total compensation and benefits | $ | 106,593 | $ | 145,514 | $ | (38,921) | (27)% |
Year Ended December 31, | 2023 Over 2022 Change | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Professional services | $ | 11,905 | $ | 14,265 | $ | (2,360) | (17) | % | |||||||||||||||
Acquisition-related transaction costs | — | 5,113 | (5,113) | (100) | |||||||||||||||||||
Advertising and market development | 3,486 | 4,754 | (1,268) | (27) | |||||||||||||||||||
Rent and occupancy | 4,884 | 5,455 | (571) | (10) | |||||||||||||||||||
Technology and communications | 14,507 | 11,489 | 3,018 | 26 | |||||||||||||||||||
General and administrative | 12,510 | 11,324 | 1,186 | 10 | |||||||||||||||||||
Depreciation and amortization | 6,954 | 6,026 | 928 | 100 | 15 | ||||||||||||||||||
Total other operating expenses | $ | 54,246 | $ | 58,426 | $ | (4,180) | (7) | % |
Year Ended December 31, | 2023 Over 2022 Change | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | $ | % | |||||||||||||||||||
Interest income | $ | 6,421 | $ | 2,681 | $ | 3,740 | 100 | 140 | % | ||||||||||||||
(Loss) gain from change in fair value of warrant liabilities | (6,465) | 19,836 | (26,301) | (133) | |||||||||||||||||||
Other income, net | 763 | 945 | (182) | (19) | |||||||||||||||||||
Total interest and other income | $ | 719 | $ | 23,462 | $ | (22,743) | (97) | % |
Year Ended December 31, | ||||||||||||||
2023 | 2022 | |||||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | $ | (41,456) | $ | (68,806) | ||||||||||
Investing activities | $ | (8,160) | $ | (6,650) | ||||||||||
Financing activities | $ | 57 | $ | 192,862 |
Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | |||||||||||||||||||||||||
Operating lease obligations(1) | $ | 5,621 | $ | 2,810 | $ | 2,811 | $ | — | $ | — | |||||||||||||||||||
Non-cancelable purchase obligations(2) | 7,394 | 1,969 | 4,194 | 1,231 | — | ||||||||||||||||||||||||
Total contractual obligations | $ | 13,015 | $ | 4,779 | $ | 7,005 | $ | 1,231 | $ | — |
Impairment assessment of goodwill | |||||
Description of the Matter | At December 31, 2023, the Company’s Goodwill was $121 million. As discussed in note 2 to the consolidated financial statements, the Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate the goodwill may be impaired. The Company has determined that it has a single reporting unit. In the first quarter of 2023, as a result of the decline in the market value of the Company's stock, the Company performed an interim quantitative impairment analysis to assess the enterprise value of the Company and assess its goodwill for recoverability as of March 31, 2023 (“interim reporting date”). For the year ended December 31, 2023, the Company did not recognize impairment charges on goodwill. Auditing the Company's interim impairment assessment was complex and involved a high degree of subjectivity as the estimate of fair value of the reporting unit is based on significant assumptions including discount rate, revenue growth rates and projected EBITDA margin. | ||||
How We Addressed the Matter in Our Audit | To test the fair value of the Company’s reporting unit, our audit procedures included, among others, assessing the methodology and assumptions described above used in the impairment assessment as of the interim reporting date. We compared the assumptions described above to analyst expectations, historical performance and other available market information. We also performed our own sensitivity analyses by increasing or decreasing the assumptions and evaluated the potential impact on the estimated fair value of the reporting unit. We involved our specialist to assist us in evaluating the methodologies and assumptions used to calculate the estimated fair value of the Company’s reporting unit. In addition, we tested the reconciliation of the fair value of the reporting unit developed by management to the market capitalization of the Company as of the valuation date and evaluated the implied control premium for reasonableness. | ||||
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | $ | $ | |||||||||
Internal-use software, property and equipment, net | |||||||||||
Goodwill and other intangible assets, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Payment-dependent notes receivable, noncurrent | |||||||||||
Other assets, noncurrent | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued compensation and benefits | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Operating lease liabilities, current | |||||||||||
Total current liabilities | $ | $ | |||||||||
Operating lease liabilities, noncurrent | |||||||||||
Payment-dependent notes payable, noncurrent | |||||||||||
Warrant liabilities | |||||||||||
Other liabilities, noncurrent | |||||||||||
Total liabilities | $ | $ | |||||||||
Commitments and contingencies (Note 8) | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Treasury stock, at cost; | ( | ||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive income | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total Forge Global Holdings, Inc. stockholders’ equity | $ | $ | |||||||||
Noncontrolling interest | |||||||||||
Total stockholders’ equity | $ | $ | |||||||||
Total liabilities and stockholders’ equity | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Revenues: | |||||||||||||||||
Marketplace revenue | $ | $ | $ | ||||||||||||||
Custodial administration fees | |||||||||||||||||
Total revenues | $ | $ | $ | ||||||||||||||
Transaction-based expenses: | |||||||||||||||||
Transaction-based expenses | ( | ( | ( | ||||||||||||||
Total revenues, less transaction-based expenses | $ | $ | $ | ||||||||||||||
Operating expenses: | |||||||||||||||||
Compensation and benefits | |||||||||||||||||
Professional services | |||||||||||||||||
Acquisition-related transaction costs | |||||||||||||||||
Advertising and market development | |||||||||||||||||
Rent and occupancy | |||||||||||||||||
Technology and communications | |||||||||||||||||
General and administrative | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Total operating expenses | $ | $ | $ | ||||||||||||||
Operating loss | $ | ( | $ | ( | $ | ( | |||||||||||
Interest and other income (expenses): | |||||||||||||||||
Interest income (expenses), net | ( | ||||||||||||||||
(Loss) gain from change in fair value of warrant liabilities | ( | ( | |||||||||||||||
Other income, net | |||||||||||||||||
Total interest and other income (expenses) | $ | $ | $ | ( | |||||||||||||
Loss before provision for income taxes | $ | ( | $ | ( | $ | ( | |||||||||||
Provision for income taxes | |||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | |||||||||||
Net loss attributable to noncontrolling interest | ( | ( | |||||||||||||||
Net loss attributable to Forge Global Holdings, Inc. | $ | ( | $ | ( | $ | ( | |||||||||||
Net loss per share attributable to Forge Global Holdings, Inc. common stockholders: | |||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | |||||||||||
Diluted | $ | ( | $ | ( | $ | ( | |||||||||||
Weighted-average shares used in computing net loss per share attributable to Forge Global Holdings, Inc. common stockholders: | |||||||||||||||||
Basic | |||||||||||||||||
Diluted |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | |||||||||||
Foreign currency translation adjustment | |||||||||||||||||
Comprehensive loss | ( | ( | ( | ||||||||||||||
Less: Comprehensive (loss) income attributable to noncontrolling interest | ( | ||||||||||||||||
Comprehensive loss attributable to Forge Global Holdings, Inc. | $ | ( | $ | ( | $ | ( |
Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ | — | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series B-1 convertible preferred stock at $ | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series B-1 convertible preferred stock at $ | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series B-2 convertible preferred stock at $ | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class AA common stock upon exercise of vested stock options, including stock options exercised via promissory notes | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class AA common stock upon early exercise of unvested stock options, including stock options exercised via promissory notes | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of early exercised stock options | — | — | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of Class AA common stock for Series B-1 convertible preferred stock | ( | (*) | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | — | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Unissued common stock (1) | — | — | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | — | $ | $ | ( | $ | $ | $ | ( |
Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | $ | — | $ | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Pre-close issuance of common stock upon exercise of vested options | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-close issuance of common stock upon exercise of unvested options | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Pre-close issuance of common stock for services | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of preferred stock to common stock | ( | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of May 2020 and October 2020 preferred stock warrants of Legacy Forge to common stock warrants | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement of promissory notes | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon Merger (net of redemptions), including PIPE Investment and A&R FPA investors, net of transaction cost of $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of Public Warrants | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon release of restricted stock units | — | — | (*) | — | (*) | — | — | — | (*) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of vested options | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon early exercise of unvested options | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of Junior Preferred Stock Warrants | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Formation of Forge Europe | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of early exercised stock options | — | — | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options and restricted stock awards | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | $ |
Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | $ | $ | $ | ( | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon release of restricted stock units | — | — | (*) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding related to vesting of restricted stock units | — | — | ( | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of vested options | — | — | (*) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of early exercised stock options | — | — | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options and restricted stock awards | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases | — | — | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign-currency translation adjustment | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ |
Year Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | ||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operations: | ||||||||||||||||||||
Share-based compensation | ||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||
Amortization of right-of-use assets | ||||||||||||||||||||
Loss on impairment of long lived assets | ||||||||||||||||||||
Bad debt reserve | ||||||||||||||||||||
Change in fair value of warrant liabilities | ( | |||||||||||||||||||
Change in fair value of contingent liability(1) | ||||||||||||||||||||
Settlement of related party promissory notes (Note 3) | ||||||||||||||||||||
Other | ( | |||||||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||||||
Accounts receivable | ( | |||||||||||||||||||
Prepaid expenses and other assets | ( | ( | ||||||||||||||||||
Accounts payable | ( | ( | ||||||||||||||||||
Accrued expenses and other liabilities | ( | ( | ||||||||||||||||||
Accrued compensation and benefits | ( | ( | ||||||||||||||||||
Operating lease liabilities | ( | ( | ( | |||||||||||||||||
Net cash (used in) provided by operating activities | ( | ( | ||||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Receipts of term deposit maturities | ||||||||||||||||||||
Purchases of property and equipment | ( | ( | ||||||||||||||||||
Purchases of term deposit | ( | |||||||||||||||||||
Purchases of intangible assets | ( | ( | ||||||||||||||||||
Capitalized internal-use software development costs | ( | ( | ||||||||||||||||||
Net cash used in investing activities | ( | ( | ( | |||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from exercise of options, including proceeds from repayment of promissory notes | ||||||||||||||||||||
Taxes withheld and paid related to net share settlement of equity awards | ( | |||||||||||||||||||
Proceeds from PIPE investment and A&R FPA investors | ||||||||||||||||||||
Proceeds from exercise of Public Warrants | ||||||||||||||||||||
Formation of Forge Europe (Note 1) | ||||||||||||||||||||
Proceeds from the Merger | ||||||||||||||||||||
Payments for redemption of Public Warrants | ( | |||||||||||||||||||
Payments for offering costs | ( | ( | ||||||||||||||||||
Proceeds from issuance of Series B-1 convertible preferred stock, net of issuance costs | ||||||||||||||||||||
Proceeds from issuance of Series B-2 convertible preferred stock, net of issuance costs | ||||||||||||||||||||
Cash paid to purchase equity awards | ( | |||||||||||||||||||
Cash flows from financing activities (continued): |
Year Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | ||||||||||||||||||
Repayment of notes payable | ( | |||||||||||||||||||
Net cash provided by financing activities | ||||||||||||||||||||
Effect of changes in currency exchange rates on cash and cash equivalents | ||||||||||||||||||||
Net (decrease) increase in cash and cash equivalents | ( | |||||||||||||||||||
Cash, cash equivalents and restricted cash, beginning of the period | ||||||||||||||||||||
Cash, cash equivalents and restricted cash, end of the period | $ | $ | $ | |||||||||||||||||
Reconciliation of cash, cash equivalents and restricted cash to the amounts reported within the consolidated balance sheets | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Restricted cash | ||||||||||||||||||||
Total cash, cash equivalents and restricted cash, end of the period | $ | $ | $ | |||||||||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash paid for interest | $ | $ | $ | |||||||||||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||||||
Lease liabilities arising from obtaining right-of-use assets | ||||||||||||||||||||
Vesting of early exercised stock options and restricted stock awards | ||||||||||||||||||||
Purchase of property and equipment accrued and not yet paid | ||||||||||||||||||||
Conversion of preferred stock | ||||||||||||||||||||
Assumption of merger warrants liability | ||||||||||||||||||||
Reclassification of deferred offering costs to equity | ||||||||||||||||||||
Issuance of common stock upon settlement of related party promissory notes | ||||||||||||||||||||
Warrants issued in connection with A&R FPA | ||||||||||||||||||||
Conversion of May 2020 and October 2020 preferred stock warrants of Legacy Forge to common stock warrants | ||||||||||||||||||||
Early exercise of stock options upon settlement of related party promissory notes | ||||||||||||||||||||
Warrant liability reclassified to additional paid-in capital upon exercise of Public Warrants | ||||||||||||||||||||
Warrant liability reclassified to additional paid-in capital upon exercise of Junior Preferred Stock Warrants | ||||||||||||||||||||
Non-cash assets acquired in the Merger | ||||||||||||||||||||
Capitalized internal-use software development costs accrued and not yet paid | ||||||||||||||||||||
Exchange of Class AA common stock for Series B-1 convertible preferred stock | ||||||||||||||||||||
Deferred offering cost accrued and not yet paid | ||||||||||||||||||||
Conversion of convertible notes into Series B-1 convertible preferred stock | $ | $ | $ | |||||||||||||||||
As of December 31, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Term deposits (less than 90 days) | |||||||||||||||||||||||
Payment-dependent notes receivable, non-current | |||||||||||||||||||||||
Term deposits(1)(2) | |||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
Payment-dependent notes payable, non-current | $ | $ | $ | $ | |||||||||||||||||||
December 2023 warrants(3) | |||||||||||||||||||||||
Private placement warrants | |||||||||||||||||||||||
Total financial liabilities | $ | $ | $ | $ | |||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Payment-dependent notes receivable, non-current | |||||||||||||||||||||||
Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
Payment-dependent notes payable, non-current | |||||||||||||||||||||||
Junior preferred warrant liabilities | |||||||||||||||||||||||
Private placement warrants | |||||||||||||||||||||||
Total financial liabilities | $ | $ | $ | $ |
As of December 31, | |||||
2022 | |||||
Fair value of underlying securities | $ | ||||
Expected term (years) | |||||
Expected volatility | % | ||||
Risk-free interest rate | % | ||||
Expected dividend yield | % | ||||
Fair value per warrant | $ |
For the years ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Balance, January 1 | $ | $ | $ | ||||||||||||||
Change in fair value of warrant liability(1) | ( | ||||||||||||||||
Change in fair value of contingent liability(2) | |||||||||||||||||
Issuance of common stock on warrant exercise | ( | ||||||||||||||||
Balance, December 31 | $ | $ | $ |
As of December 31, | |||||||||||
2023 | 2022 | ||||||||||
Fair value of underlying securities | $ | $ | |||||||||
Expected term (years) | |||||||||||
Expected volatility | % | % | |||||||||
Risk-free interest rate | % | % | |||||||||
Expected dividend yield | % | % | |||||||||
Fair value per warrant | $ | $ |
For the years ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Balance, January 1 | $ | $ | |||||||||
Assumption of Private Placement Warrants | |||||||||||
Change in fair value of warrant liability(1) | ( | ||||||||||
Issuance of common stock on warrant exercise | |||||||||||
Balance, December 31 | $ | $ |
Total Level 3 Financial Assets | Total Level 3 Financial Liabilities | ||||||||||
Balance as of December 31, 2022 | $ | $ | |||||||||
Change in fair value of payment-dependent notes receivable | ( | — | |||||||||
Change in fair value of Private Placement Warrants | — | ||||||||||
Change in fair value of payment-dependent notes payable | — | ( | |||||||||
Change in fair value of December 2023 Warrants(1) | — | ||||||||||
Transfer of December 2023 Warrants out of Level 3 to Level 2(2) | — | ( | |||||||||
Balance as of December 31, 2023 | $ | $ |
Total Level 3 Financial Assets | Total Level 3 Financial Liabilities | ||||||||||
Balance as of December 31, 2021 | $ | $ | |||||||||
Change in fair value of payment-dependent notes receivable | ( | — | |||||||||
Transfer of Private Placement Warrants out of Level 2 to Level 3(2) | — | ||||||||||
Change in fair value of Series B-1 Preferred Stock Warrant liability | — | ||||||||||
Exercise of Junior Preferred Stock Warrants | — | ( | |||||||||
Settlement of Series B-1 Preferred Stock Warrant Liability via conversion to equity-classified common stock warrants | — | ( | |||||||||
Change in fair value of Junior Preferred Stock Warrants | — | ( | |||||||||
Change in fair value of payment-dependent notes payable | — | ( | |||||||||
Change in fair value of Private Placement Warrants | — | ( | |||||||||
Balance as of December 31, 2022 | $ | $ |
As of December 31, | |||||||||||
2023 | 2022 | ||||||||||
Term deposits | $ | $ | |||||||||
Prepaid insurance | |||||||||||
Prepaid software | |||||||||||
Other prepaid expenses | |||||||||||
Other current assets | |||||||||||
Prepaid expenses and other current assets | $ | $ |
As of December 31, | |||||||||||
2023 | 2022 | ||||||||||
Capitalized internal-use software | $ | $ | |||||||||
Computer equipment | |||||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
$ | $ | ||||||||||
Less: accumulated depreciation and amortization | ( | ( | |||||||||
Total | $ | $ |
As of December 31, | |||||||||||
2023 | 2022 | ||||||||||
Accrued professional services | $ | $ | |||||||||
Accrued taxes and deferred tax liabilities | |||||||||||
Common stock unvested liability | |||||||||||
Other current liabilities | |||||||||||
Total | $ | $ |
As of December 31, 2023 | |||||||||||||||||||||||
Weighted Average Remaining Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Goodwill: | |||||||||||||||||||||||
Goodwill from acquisitions | Indefinite | $ | $ | — | $ | ||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||
Developed technology | ( | ||||||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Launched IPR&D assets | ( | ||||||||||||||||||||||
Total finite-lived intangible assets | ( | ||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||
Trade name - website domain | Indefinite | — | |||||||||||||||||||||
Total infinite-lived intangible assets | — | ||||||||||||||||||||||
Total goodwill and intangible assets | $ | $ | ( | $ |
As of December 31, 2022 | |||||||||||||||||||||||
Weighted Average Remaining Amortization Period | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||
Goodwill: | |||||||||||||||||||||||
Goodwill from acquisitions | Indefinite | $ | $ | — | $ | ||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||
Developed technology | ( | ||||||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Trade name | ( | ||||||||||||||||||||||
Launched IPR&D assets | ( | ||||||||||||||||||||||
Total finite-lived intangible assets | ( | ||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||
Trade name - website domain | Indefinite | — | |||||||||||||||||||||
Total infinite-lived intangible assets | — | ||||||||||||||||||||||
Total goodwill and intangible assets | $ | $ | ( | $ |
Amount | |||||
2024 | $ | ||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 | |||||
Thereafter | |||||
Total | $ |
Year Ended December 31, | |||||||||||
2023 | 2022 | 2021 | |||||||||
Operating lease expense | $ | $ | $ | ||||||||
Variable lease expense | |||||||||||
Total operating lease expenses (1) | $ | $ | $ | ||||||||
Sublease income (2) | $ | $ | $ |
As of December 31, | |||||||||||
2023 | 2022 | ||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||
Operating lease liabilities, current | $ | $ | |||||||||
Operating lease liabilities, noncurrent | $ | $ | |||||||||
Weighted-average remaining lease term (in years) | |||||||||||
Weighted-average discount rate | % | % |
Lease Payment Obligation | Sublease Income | Net Lease Obligation | |||||||||||||||
2024 | $ | $ | ( | $ | |||||||||||||
2025 | ( | ||||||||||||||||
Total undiscounted lease payments | $ | $ | ( | $ | |||||||||||||
Less: imputed interest | ( | ||||||||||||||||
Present value of future lease payments | |||||||||||||||||
Less: operating lease liabilities, current | |||||||||||||||||
Operating lease liabilities, noncurrent | $ | ||||||||||||||||
Amount | ||||||||
2024 | $ | |||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total | $ |
As of December 31, | |||||||||||
2023 | 2022 | ||||||||||
Warrants to purchase common stock | |||||||||||
Stock options issued and outstanding under 2018 Plan(1) | |||||||||||
Shares available for grant under 2022 Plan(2) | |||||||||||
RSUs issued and outstanding under 2022 Plan | |||||||||||
Shares available for grant under 2022 ESPP | |||||||||||
Outstanding Private Placement Warrants | |||||||||||
Total shares of common stock reserved | |||||||||||
Year ended December 31 | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
RSUs | $ | $ | $ | ||||||||||||||
Stock options | |||||||||||||||||
RSAs | |||||||||||||||||
Secondary sales of common stock | |||||||||||||||||
Pre-close issuance of common stock for services | |||||||||||||||||
Total share-based compensation | $ | $ | $ |
Stock options | Weighted-Average Exercise Price | Weighted-Average Life (Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
Balance as of December 31, 2021 | $ | $ | |||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Cancelled/Forfeited/Expired | ( | ||||||||||||||||||||||
Balance as of December 31, 2022 | $ | $ | |||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Cancelled/Forfeited/Expired(1) | ( | ||||||||||||||||||||||
Balance as of December 31, 2023 | $ | $ | |||||||||||||||||||||
Vested and exercisable as of December 31, 2023 | $ | $ |
Total RSUs | Time-based | Performance-based | Market-based | Weighted-Average Grant Date Fair Value Per Share | |||||||||||||||||||||||||
Unvested as of December 31, 2021 | $ | ||||||||||||||||||||||||||||
Granted | |||||||||||||||||||||||||||||
Vested | ( | ( | ( | ||||||||||||||||||||||||||
Forfeited | ( | ( | ( | ||||||||||||||||||||||||||
Unvested as of December 31, 2022 | $ | ||||||||||||||||||||||||||||
Granted(1) | |||||||||||||||||||||||||||||
Vested(2) | ( | ( | ( | ||||||||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||||||||
Unvested as of December 31, 2023 | $ | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Domestic | $ | ( | $ | ( | $ | ( | |||||||||||
Foreign | ( | ( | ( | ||||||||||||||
Total loss before provision for income taxes | $ | ( | $ | ( | $ | ( |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Current: | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State | |||||||||||||||||
Foreign | |||||||||||||||||
Total Current | $ | $ | $ | ||||||||||||||
Deferred: | |||||||||||||||||
Federal | $ | $ | $ | ||||||||||||||
State | ( | ||||||||||||||||
Foreign | |||||||||||||||||
Total Deferred | $ | $ | $ | ||||||||||||||
Total Provision for income taxes | $ | $ | $ | ||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||||||||||||||||||||
Tax provision (benefit) at U.S. statutory rate | $ | ( | % | $ | ( | % | $ | ( | % | ||||||||||||||||||||||||||
State income taxes (1) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Foreign taxes in excess of the U.S. statutory rate | ( | ( | |||||||||||||||||||||||||||||||||
Change of valuation allowance (1) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Change in fair value of warrant liabilities (1) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Share based compensation | ( | ( | ( | ||||||||||||||||||||||||||||||||
Tax credits | ( | ( | ( | ||||||||||||||||||||||||||||||||
Section 162(m) limitation | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||||||||||||||
Tax Expense | $ | ( | % | $ | ( | % | $ | ( | % |
Year Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
Deferred tax assets | |||||||||||
Accrued compensation | $ | $ | |||||||||
Operating lease liability | |||||||||||
Share-based compensation | |||||||||||
Net operating loss carryforwards (1) | |||||||||||
Allowance for bad debt | |||||||||||
Tax credits | |||||||||||
Section 174 capitalization | |||||||||||
Other | ( | ||||||||||
Total deferred tax assets | $ | $ | |||||||||
Valuation allowance (1) | ( | ( | |||||||||
Net deferred tax assets | $ | $ | |||||||||
Deferred tax liabilities | |||||||||||
Depreciation and amortization | $ | ( | $ | ( | |||||||
Operating lease assets | ( | ( | |||||||||
Other | |||||||||||
Total deferred tax liabilities | $ | ( | $ | ( | |||||||
Net deferred tax liabilities | $ | ( | $ | ( |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||
Additions for current year items | |||||||||||||||||
Additions for prior year items | |||||||||||||||||
Reductions for prior year items | ( | ||||||||||||||||
Lapse of statute of limitations | |||||||||||||||||
Ending Balance | $ | $ | $ |
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Numerator: | |||||||||||||||||
Net loss attributable to Forge Global Holdings, Inc., basic | $ | ( | $ | ( | $ | ( | |||||||||||
Less: Change in fair value of Junior Preferred Stock warrant liability | ( | ||||||||||||||||
Net loss attributable to common stockholders, diluted | $ | ( | $ | ( | $ | ( | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average number of shares used to compute net loss per share attributable to common stockholders, basic | |||||||||||||||||
Dilutive effect of common share equivalents | |||||||||||||||||
Weighted-average number of shares used to compute net loss per share attributable to common stockholders, diluted | |||||||||||||||||
Net loss per share attributed to common stockholders: | |||||||||||||||||
Basic | $ | ( | $ | ( | $ | ( | |||||||||||
Diluted | $ | ( | $ | ( | $ | ( | |||||||||||
Year Ended December 31, | |||||||||||||||||
2023 | 2022 | 2021 | |||||||||||||||
Convertible preferred stock(1) | |||||||||||||||||
Warrants to purchase common stock | |||||||||||||||||
Private Placement Warrants | |||||||||||||||||
Common stock subject to repurchase | |||||||||||||||||
Outstanding options | |||||||||||||||||
Restricted stock units | |||||||||||||||||
Total |
Incorporated by Reference | |||||||||||||||||
Exhibit Number | Description | Form | File No. | Exhibit Number | Date Filed | ||||||||||||
2.1+ | 8-K | 001-39794 | 2.1 | September 13, 2021 | |||||||||||||
3.1 | 8-K | 001-39794 | 3.1 | March 25, 2022 | |||||||||||||
3.2 | S-4/A | 333-260104 | 3.3 | February 11, 2022 | |||||||||||||
4.1 | S-4/A | 333-260104 | 4.5 | January 31, 2022 | |||||||||||||
4.2 | S-4/A | 333-260104 | 4.4 | December 16, 2020 | |||||||||||||
4.3 | 10-K | 001-39794 | 4.3 | March 1, 2023 | |||||||||||||
10.1 | S-4/A | 333-260104 | Annex G | February 11, 2022 | |||||||||||||
10.2+ | 10-Q | 001-39794 | 10.1 | November 7, 2023 | |||||||||||||
10.3# | 8-K | 001-39794 | 10.3 | March 25, 2022 | |||||||||||||
10.4# | 8-K | 001-39794 | 10.4 | March 25, 2022 | |||||||||||||
10.5# | S-8 | 333-265232 | 99.4 | May 26, 2022 | |||||||||||||
10.6# | S-8 | 333-265232 | 99.5 | May 26, 2022 | |||||||||||||
10.7# | S-8 | 333-265232 | 99.6 | May 26, 2022 | |||||||||||||
10.8# | S-8 | 333-265232 | 99.7 | May 26, 2022 | |||||||||||||
10.9#+ | 10-Q | 001-39794 | 10.1#+ | August 3, 2023 | |||||||||||||
10.10*# | |||||||||||||||||
10.11# | 8-K | 001-39794 | 10.9 | March 25, 2022 | |||||||||||||
10.12# | 8-K | 001-39794 | 10.1 | March 25, 2022 | |||||||||||||
10.13# | 8-K | 001-39794 | 10.11 | March 25, 2022 | |||||||||||||
10.14# | 8-K | 001-39794 | 10.13 | March 25, 2022 | |||||||||||||
10.15# | 8-K | 001-39794 | 10.14 | March 25, 2022 | |||||||||||||
10.16 | 424B3 | 333-260104 | Annex D | February 14, 2022 | |||||||||||||
10.17# | 10-Q | 001-39794 | 10.1 | August 12, 2022 | |||||||||||||
10.18# | 10-Q | 001-39794 | 10.2 | August 12, 2022 | |||||||||||||
10.19*# |
10.20*# | |||||||||||||||||
16.1 | 8-K | 001-39794 | 16.1 | March 25, 2022 | |||||||||||||
21.1* | |||||||||||||||||
23.1* | |||||||||||||||||
24.1* | Power of Attorney (included on signature page hereto). | ||||||||||||||||
31.1* | |||||||||||||||||
31.2* | |||||||||||||||||
32.1** | |||||||||||||||||
97.1* | |||||||||||||||||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | ||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
Forge Global Holdings, Inc. | |||||||||||||||||
Date: March 26, 2024 | By: /s/ Kelly Rodriques | ||||||||||||||||
Kelly Rodriques | |||||||||||||||||
Chief Executive Officer (Principal Executive Officer) | |||||||||||||||||
Date: March 26, 2024 | By: /s/ Mark Lee | ||||||||||||||||
Mark Lee | |||||||||||||||||
Chief Financial Officer (Principal Financial Officer) | |||||||||||||||||
Date: March 26, 2024 | By: /s/ Catherine Dondzila | ||||||||||||||||
Catherine Dondzila | |||||||||||||||||
Chief Accounting Officer (Principal Accounting Officer) |
Signature | Title | Date | ||||||||||||||||||
/s/ Kelly Rodriques | Chairman and Chief Executive Officer | March 26, 2024 | ||||||||||||||||||
Kelly Rodriques | (Principal Executive Officer) | |||||||||||||||||||
/s/ Mark Lee | Chief Financial Officer | March 26, 2024 | ||||||||||||||||||
Mark Lee | (Principal Financial Officer) | |||||||||||||||||||
/s/ Catherine Dondzila | Chief Accounting Officer | March 26, 2024 | ||||||||||||||||||
Catherine Dondzila | (Principal Accounting Officer) | |||||||||||||||||||
/s/ Ashwin Kumar | Director | March 26, 2024 | ||||||||||||||||||
Ashwin Kumar | ||||||||||||||||||||
/s/ Blythe Masters | Director | March 26, 2024 | ||||||||||||||||||
Blythe Masters | ||||||||||||||||||||
/s/ Kimberley Vogel | Director | March 26, 2024 | ||||||||||||||||||
Kimberley Vogel | ||||||||||||||||||||
/s/ Asiff Hirji | Director | March 26, 2024 | ||||||||||||||||||
Asiff Hirji | ||||||||||||||||||||
/s/ Debra Chrapaty | Director | March 26, 2024 | ||||||||||||||||||
Debra Chrapaty | ||||||||||||||||||||
/s/ Eric Leupold | Director | March 26, 2024 | ||||||||||||||||||
Eric Leupold | ||||||||||||||||||||
/s/ Larry Leibowitz | Director | March 26, 2024 | ||||||||||||||||||
Larry Leibowitz |
Initials of the parties expressly assenting to the provisions in § 6.7: | |||||||||||
/s/ ML | /s/ KR | ||||||||||
Executive’s initials | Initials of Forge representative | ||||||||||
FORGE GLOBAL HOLDINGS, INC. | MARK LEE | |||||||||||||
By: | /s/ Kelly Rodriques | By: | /s/ Mark Lee | |||||||||||
Name: | Kelly Rodriques | Name: | Mark Lee | |||||||||||
Title: | Chief Executive Officer | Title: | Chief Financial Officer | |||||||||||
Date: | March 26, 2024 | Date: | March 26, 2024 | |||||||||||
Initials of the parties expressly assenting to the provisions in § 6.7: | |||||||||||
/s/ DS | /s/ KR | ||||||||||
Executive’s initials | Initials of Forge representative | ||||||||||
FORGE GLOBAL HOLDINGS, INC. | DREW SIEVERS | |||||||||||||
By: | /s/ Kelly Rodriques | By: | /s/ Drew Sievers | |||||||||||
Name: | Kelly Rodriques | Name: | Drew Sievers | |||||||||||
Title: | Chief Executive Officer | Title: | Chief Operating Officer | |||||||||||
Date: | March 26, 2024 | Date: | March 26, 2024 | |||||||||||
Initials of the parties expressly assenting to the provisions in § 6.7: | |||||||||||
/s/ JP | /s/ KR | ||||||||||
Executive’s initials | Initials of Forge representative | ||||||||||
FORGE GLOBAL HOLDINGS, INC. | JENNIFER PHILLIPS | |||||||||||||
By: | /s/ Kelly Rodriques | By: | /s/ Jennifer Phillips | |||||||||||
Name: | Kelly Rodriques | Name: | Jennifer Phillips | |||||||||||
Title: | Chief Executive Officer | Title: | Chief Growth Officer | |||||||||||
Date: | March 26, 2024 | Date: | March 26, 2024 | |||||||||||
Name of Subsidiary | Jurisdiction of Incorporation or Organization | ||||
Equi LLC | Delaware | ||||
Equidate Holdings LLC | Delaware | ||||
Forge Asia Limited | Hong Kong | ||||
Forge Data LLC | Delaware | ||||
Forge EOF LLC | Delaware | ||||
Forge Europe GmbH | Germany | ||||
Forge Europe UK Ltd | United Kingdom | ||||
Forge Financial Holdings, Inc. | Delaware | ||||
Forge Global Advisors LLC | Delaware | ||||
Forge Global, Inc. | Delaware | ||||
Forge Investments LLC | Delaware | ||||
Forge Investments SPC | Cayman Islands | ||||
Forge Investments II SPC | Cayman Islands | ||||
Forge Lending LLC | California | ||||
Forge Markets LLC | Delaware | ||||
Forge Offshore Limited | Cayman Islands | ||||
Forge Research LLC | Delaware | ||||
Forge Securities LLC | Delaware | ||||
Forge Services, Inc. | California | ||||
Forge Trust Co. | South Dakota | ||||
SharesPost Asia Pte. Ltd. | Singapore | ||||
SharesPost Financial Corporation | California |
Date: March 26, 2024 | By: /s/ Kelly Rodriques | ||||||||||||||||
Kelly Rodriques | |||||||||||||||||
Chief Executive Officer (Principal Executive Officer) |
Date: March 26, 2024 | By: /s/ Mark Lee | ||||||||||||||||
Mark Lee | |||||||||||||||||
Chief Financial Officer (Principal Financial and Accounting Officer) |
Date: March 26, 2024 | By: /s/ Kelly Rodriques | ||||||||||||||||
Kelly Rodriques | |||||||||||||||||
Chief Executive Officer (Principal Executive Officer) |
Date: March 26, 2024 | By: /s/ Mark Lee | ||||||||||||||||
Mark Lee | |||||||||||||||||
Chief Financial Officer (Principal Financial Officer) |
Audit Information |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Francisco, California |
Auditor Firm ID | 42 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2023 |
Dec. 31, 2022 |
Mar. 21, 2022 |
---|---|---|---|
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares issued (in shares) | 176,899,814 | 172,560,916 | |
Common stock, shares outstanding (in shares) | 176,899,814 | 172,560,916 | |
Treasury stock (in shares) | 157,193 | 0 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (91,549) | $ (111,905) | $ (18,499) |
Foreign currency translation adjustment | 378 | 1,155 | 0 |
Comprehensive loss | (91,171) | (110,750) | (18,499) |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (1,168) | 416 | 0 |
Net loss attributable to Forge Global Holdings, Inc. | $ (90,003) | $ (111,166) | $ (18,499) |
Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity (Parentheticals) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
$ / shares
| |
Adjustments to stock issuance costs | $ 58,673 |
Series B-1 Convertible Preferred Stock | |
Adjustments to stock issuance costs | $ 2,838 |
Series B-2 Convertible Preferred Stock | |
Share price (in dollars per share) | $ / shares | $ 3.9760 |
Consolidated Statement of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|||
Cash flows from operating activities: | |||||
Net loss | $ (91,549) | $ (111,905) | $ (18,499) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operations: | |||||
Share-based compensation | 34,334 | 57,924 | 12,231 | ||
Depreciation and amortization | 6,954 | 6,026 | 5,390 | ||
Amortization of right-of-use assets | 3,153 | 3,999 | 2,804 | ||
Loss on impairment of long lived assets | 599 | 446 | 0 | ||
Bad debt reserve | 270 | 433 | 121 | ||
Change in fair value of warrant liabilities | 6,465 | (19,836) | 6,064 | ||
Change in fair value of contingent liability | [1] | 2,545 | 0 | 0 | |
Settlement of related party promissory notes | 0 | 5,517 | 0 | ||
Other | (625) | 3,132 | 107 | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (792) | 1,403 | 382 | ||
Prepaid expenses and other assets | 2,018 | (3,321) | (1,031) | ||
Accounts payable | (1,216) | 904 | (692) | ||
Accrued expenses and other liabilities | 2,805 | (788) | (520) | ||
Accrued compensation and benefits | (2,267) | (7,911) | 8,080 | ||
Operating lease liabilities | (4,150) | (4,829) | (3,536) | ||
Net cash (used in) provided by operating activities | (41,456) | (68,806) | 10,901 | ||
Cash flows from investing activities: | |||||
Receipts of term deposit maturities | 2,115 | 0 | 0 | ||
Purchases of property and equipment | (527) | (220) | 0 | ||
Purchases of term deposit | (9,748) | 0 | 0 | ||
Purchases of intangible assets | 0 | (118) | (2,202) | ||
Capitalized internal-use software development costs | 0 | (6,312) | (1,054) | ||
Net cash used in investing activities | (8,160) | (6,650) | (3,256) | ||
Cash flows from financing activities: | |||||
Proceeds from exercise of options, including proceeds from repayment of promissory notes | 710 | 1,086 | 1,621 | ||
Taxes withheld and paid related to net share settlement of equity awards | (653) | 0 | 0 | ||
Proceeds from PIPE investment and A&R FPA investors | 0 | 208,500 | 0 | ||
Proceeds from exercise of Public Warrants | 0 | 22,940 | 0 | ||
Formation of Forge Europe | 0 | 9,488 | 0 | ||
Proceeds from the Merger | 0 | 7,865 | 0 | ||
Payments for redemption of Public Warrants | 0 | (165) | 0 | ||
Payments for offering costs | 0 | (56,852) | (4,954) | ||
Cash paid to purchase equity awards | 0 | 0 | (23) | ||
Repayment of notes payable | 0 | 0 | (19,438) | ||
Net cash provided by financing activities | 57 | 192,862 | 26,581 | ||
Effect of changes in currency exchange rates on cash and cash equivalents | 378 | 1,155 | 0 | ||
Net (decrease) increase in cash and cash equivalents | (49,181) | 118,561 | 34,226 | ||
Cash, cash equivalents and restricted cash, beginning of the period | 194,965 | 76,404 | 42,178 | ||
Cash, cash equivalents and restricted cash, end of the period | 145,784 | 194,965 | 76,404 | ||
Reconciliation of cash, cash equivalents and restricted cash to the amounts reported within the consolidated balance sheets | |||||
Cash and cash equivalents | 144,722 | 193,136 | 74,781 | ||
Restricted cash | 1,062 | 1,829 | 1,623 | ||
Total cash, cash equivalents and restricted cash, end of the period | 145,784 | 194,965 | 76,404 | ||
Supplemental disclosures of cash flow information: | |||||
Cash paid for interest | 0 | 0 | 2,118 | ||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Lease liabilities arising from obtaining right-of-use assets | 1,755 | 3,087 | 1,702 | ||
Vesting of early exercised stock options and restricted stock awards | 262 | 1,554 | 145 | ||
Purchase of property and equipment accrued and not yet paid | 250 | 0 | 0 | ||
Conversion of preferred stock | 0 | 246,049 | 0 | ||
Assumption of merger warrants liability | 0 | 13,983 | 0 | ||
Reclassification of deferred offering costs to equity | 0 | 5,923 | 0 | ||
Issuance of common stock upon settlement of related party promissory notes | 0 | 4,207 | 0 | ||
Warrants issued in connection with A&R FPA | 0 | 3,080 | 0 | ||
Conversion of May 2020 and October 2020 preferred stock warrants of Legacy Forge to common stock warrants | 0 | 2,949 | 0 | ||
Early exercise of stock options upon settlement of related party promissory notes | 0 | 1,310 | 0 | ||
Warrant liability reclassified to additional paid-in capital upon exercise of Public Warrants | 0 | 698 | 0 | ||
Warrant liability reclassified to additional paid-in capital upon exercise of Junior Preferred Stock Warrants | 0 | 653 | 0 | ||
Non-cash assets acquired in the Merger | 0 | 193 | 0 | ||
Capitalized internal-use software development costs accrued and not yet paid | 0 | 180 | 214 | ||
Exchange of Class AA common stock for Series B-1 convertible preferred stock | 0 | 0 | 39,722 | ||
Deferred offering cost accrued and not yet paid | 0 | 0 | 969 | ||
Series B-1 Convertible Preferred Stock | |||||
Cash flows from financing activities: | |||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | 0 | 0 | 47,735 | ||
Supplemental disclosure of non-cash investing and financing activities: | |||||
Conversion of convertible notes into Series B-1 convertible preferred stock | 0 | 0 | 111 | ||
Series B-2 Convertible Preferred Stock | |||||
Cash flows from financing activities: | |||||
Proceeds from issuance of convertible preferred stock, net of issuance costs | $ 0 | $ 0 | $ 1,640 | ||
|
Organization and Description of Business |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Forge Global Holdings, Inc. (the “Company”) is a financial services platform headquartered in San Francisco, California. The Company offers a trusted trading platform, proprietary data, and insights to inform investment strategies, along with custody services to help companies, stockholders, institutions, and accredited investors confidently navigate and transact in the private market. The Company's scaled and integrated business model is at the nexus of the private market ecosystem, which it believes creates a sustaining competitive advantage fueling its customers' participation in the private market and the Company's growth. On March 21, 2022 (the “Closing Date”), the Company consummated the Business Combination pursuant to the terms of the Agreement and Plan of Merger dated September 13, 2021 (the "Merger Agreement"), by and among Motive Capital Corp, a blank check company incorporated as a Cayman Islands exempted company in 2020 (“MOTV”), FGI Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of MOTV (“Merger Sub”), and Forge Global, Inc., a Delaware corporation (“Legacy Forge”). Pursuant to the Merger Agreement, on the Closing Date, immediately prior to the consummation of the Business Combination, MOTV changed its jurisdiction of incorporation from the Cayman Islands to the State of Delaware and changed its corporate name to "Forge Global Holdings, Inc." (the “Domestication”). On the Closing Date, Merger Sub merged with and into Legacy Forge (the "Merger"), with Legacy Forge surviving the Merger as a direct, wholly-owned subsidiary of the Company (together with the Merger, the Domestication, and the other transactions contemplated by the Merger Agreement, the “Business Combination”). The Merger was accounted for as a reverse recapitalization with Legacy Forge being the accounting acquirer and MOTV as the acquired company for accounting purposes. Accordingly, all historical financial information presented in the consolidated financial statements represents the accounts of Legacy Forge and its wholly owned subsidiaries as if Legacy Forge is the predecessor to the Company. The shares and net loss per common share prior to the Merger have been retroactively restated as shares reflecting the exchange ratio (the "Exchange Ratio") as established by the Merger Agreement (each outstanding share of Legacy Forge Class A common stock was exchanged for 3.122931 shares of the Company’s common stock, including all shares of Legacy Forge preferred stock, which were converted to shares of Legacy Forge's Class A common stock immediately prior to the Merger). See Note 3, "Recapitalization" for additional information. Forge Europe GmbH In September 2022, the Company and Deutsche Börse Aktiengesellschaft (“DBAG,” a German company and together with the Company, the “Investors”) formed an entity, Forge Europe GmbH (“Forge Europe”), to further expand the Company’s business in the European market. Upon formation, the Investors contributed to Forge Europe an aggregate cash amount of $14.1 million (the “Cash Consideration”) and certain of the Company’s intangible assets (the “Noncash Consideration”). $4.6 million of the Cash Consideration was contributed by the Company and $9.5 million was contributed by DBAG. The Company has a majority ownership interest in Forge Europe and accounts for Forge Europe as a fully consolidated subsidiary. The remaining interest, held by DBAG (a related party of the Company), is reported as a noncontrolling interest in the consolidated financial statements.
|
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation and Consolidation The accompanying consolidated financial statements include the accounts of the Company, and its subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation. In the normal course of business, the Company has transactions with various investment entities. In certain instances, the Company provides investment advisory services to pooled investment vehicles (each, an “Investment Fund”). The Company does not have discretion to make any investment, except for the specific investment for which an Investment Fund was formed. The Company performs an assessment to determine (a) whether the Company’s investments or other interests will absorb portions of a variable interest entity’s expected losses or receive portions of the entity’s expected residual returns and (b) whether the Company’s involvement, through holding interests directly or indirectly in the entity would give it a controlling financial interest. The Company consolidates entities in which it, directly or indirectly, is determined to have a controlling financial interest. Consolidation conclusions are reviewed quarterly to identify whether any reconsideration events have occurred. Segment Information The Company operates as a single operating segment and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, allocating resources and evaluating the Company’s financial performance. As of December 31, 2023 and 2022, long-lived assets located outside of the United States were not material. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant management estimates include collectability of accounts receivable, the fair value of financial assets and liabilities, the carrying value of long-lived assets and goodwill, the fair value of warrants, contingent liabilities, equity awards, share-based compensation expenses, including the determination of the fair value of the Company’s common stock prior to the Business Combination and the derived service period for the awards containing market-based vesting conditions, and the valuation of deferred tax assets. These estimates are inherently subjective in nature and, therefore, actual results may differ from the Company’s estimates and assumptions. The Company bases its estimates on historical experience and also on assumptions that it believes are reasonable. Further, the Company applies judgment in determining whether, directly or indirectly, it has a controlling financial interest in the Investment Funds, in order to conclude whether any of the Investment Funds must be consolidated. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2023. These estimates may change as new events occur and additional information is obtained, and related financial impacts will be recognized in the Company’s consolidated financial statements as soon as those events become known. Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurements. Three levels of inputs may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, requiring certain assumptions and significant management judgment or estimation about the inputs a hypothetical market participant would use to value that asset or liability. Liabilities Classified as Level 3 The Company classifies certain warrant liabilities within Level 3 of the fair value hierarchy and measures the liabilities at fair value using a binomial lattice model in a risk-neutral framework. Variables in the model include expected volatility, the risk-free rate of return, dividend yield, the fair value of the underlying security and the expected life of the instrument. The Company classifies certain payment-dependent notes receivable and payment-dependent notes payable within Level 3 of the fair value hierarchy and estimates fair values of payment-dependent notes receivable and payment-dependent notes payable utilizing completed transactions made through the Company’s platform for the relevant private securities as well as mutual fund valuations of private companies as relevant data inputs. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of bank deposit accounts and investments in certain money market mutual funds. Restricted Cash The Company classifies all cash and cash equivalents that are not available for immediate or general business use as restricted in the accompanying consolidated balance sheets. This includes amounts set aside for restrictions of specific agreements. As of December 31, 2022, restricted cash is comprised of cash held for regulatory purposes for the trust and brokerage-related activities. As of December 31, 2023, restricted cash is comprised of cash held for regulatory purposes for the trust-related activities. Accounts Receivable, Net Accounts receivable consist of amounts billed and currently due from customers, which are subject to collection risk. Under Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments we estimate our allowance for credit losses using an aging method, disaggregated based on major revenue stream categories as well as other unique revenue stream factors. The allowance for credit losses is maintained at a level that we believe to be sufficient to absorb probable losses over the expected life in our accounts receivable portfolio. The allowance is based on several factors, including continuous assessments of risk characteristics, specific customer events that may impact its ability to meet its financial obligations, and other reasonable and supportable economic characteristics. Accounts receivable are written-off against the allowance for credit losses when collection efforts cease. The total allowance for credit losses netted against account receivables in the consolidated balance sheets was $1.1 million and $0.9 million as of December 31, 2023 and 2022, respectively. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk primarily comprise cash and cash equivalents and restricted cash, term deposits, payment-dependent notes receivable, and accounts receivable. Cash and cash equivalents and restricted cash may, at times, exceed amounts insured by the FDIC and the Securities Investor Protection Corporation, respectively. The Company performs periodic evaluations of the relative credit standing of these financial institutions to limit the amount of credit exposure. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. The Company’s exposure to credit risk associated with its contracts with holders of private company equity (“sellers”) and investors (“buyers”) related to the transfer of private securities is measured on an individual counterparty basis. Concentrations of credit risk can be affected by changes in political, industry or economic factors. To reduce the potential for risk concentration, the Company’s exposure is monitored in light of changing counterparty and market conditions. As of December 31, 2023 and 2022, the Company did not have any material concentrations of credit risk outside the ordinary course of business. As of December 31, 2023 and 2022, no customers accounted for more than 10% of the Company’s accounts receivable. No customer accounted for more than 10% of total revenue, less transaction-based expenses, for the years ended December 31, 2023, 2022, and 2021. Internal-use Software and Equipment, Net The Company capitalizes certain costs related to software developed for its internal-use. The costs capitalized include development of new software features and functionality and incremental costs related to significant improvement of existing software. Development costs incurred during the preliminary or maintenance project stages are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized using the straight-line method over the useful life of the software, which is typically three years, unless factors indicate a shorter useful life. Amortization begins only when the software becomes ready for its intended use. Costs incurred after the project is substantially completed and is ready for its intended purpose, such as maintenance and training costs, are expensed as incurred, unless related to significantly increasing the functionality of existing software. Property and equipment are stated at cost net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheets, and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company also evaluates the period of depreciation and amortization of long-lived assets to determine whether events or circumstances warrant revised estimates of useful lives. When indicators of impairment are present, the Company determines the recoverability of its long-lived assets by comparing the carrying value of its long-lived assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the estimated future undiscounted cash flows demonstrate the long-lived assets are not recoverable, an impairment loss would be calculated based on the excess of the carrying amounts of the long-lived assets over their fair value. Goodwill and Other Intangible Assets, Net Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized but is tested for impairment annually on October 1, or more frequently if events or changes in circumstances indicate the goodwill may be impaired. These events or circumstances could include a significant change in the business climate, regulatory environment, established business plans, operating performance indicators, or competition. Potential impairment indicators may also include, but are not limited to, (i) the results of the Company’s most recent annual or interim impairment testing, (ii) downward revisions to internal forecasts, (iii) declines in the Company’s market capitalization below its book value, and the magnitude and duration of those declines, (iv) a reorganization resulting in a change to the Company’s operating segments, and (v) other macroeconomic factors, such as increases in interest rates that may affect the weighted average cost of capital or volatility in the equity and debt markets. No impairment charges were recognized during the years ended December 31, 2023, 2022, and 2021. Acquired intangible assets also consist of identifiable intangible assets, primarily software technology, launched IPR&D asset, website, trade name and customer relationships, resulting from business acquisitions. Finite-lived intangible assets are recorded at fair value on the date of acquisition and are amortized over their estimated useful lives. The Company bases the useful lives and related amortization expense on its estimate of the period that the assets will generate revenues or otherwise be used. Leases The Company categorizes leases at their inception or upon modification, if applicable. As of December 31, 2023 and 2022, the Company only has operating leases. For operating leases, the Company recognizes rent and occupancy on a straight-line basis, commencing on the date at which the property becomes available for the Company's use. For leases with a term greater than 12 months, the Company records the related right-of-use assets and operating lease liabilities at the present value of lease payments over the lease term. The Company does not separate lease and non-lease components of contracts for real estate property leases. Variable lease payments for common area maintenance, property taxes and other operating expenses are not included in the measurement of ROU assets and lease liabilities and are expensed as incurred. The rates implicit on the Company’s leases are not readily determinable. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest it would have to pay to borrow on a collateralized basis with an equal lease payment amount, over a similar term, and in a similar economic environment. The Company evaluates its subleases in which it is the sublessor to determine whether it is relieved of the primary obligation under the original lease. If it remains the primary obligor, the Company continues to account for the original lease as it did before the commencement of the sublease and records the sublease income based on the contract terms in other income in the consolidated statements of operations. Payment-Dependent Notes Payment-dependent notes receivable and payment-dependent notes payable represent financial instruments that are presented at fair value in the consolidated financial statements in accordance with Accounting Standards Codification ("ASC") 825, Fair Value Option for Financial Instruments. The Company enters into separate contracts with equity holders of private companies’ shares (“sellers”) and investors (“buyers”) that enable the transfer of private securities upon a specified event such as an initial public offering, merger, or acquisition involving the underlying company. The Company serves as an intermediary counterparty to both the buyer and the seller and earns transaction fee revenue by facilitating the execution of the transaction. Contracts with buyers require the Company to facilitate the transfer of a fixed number of shares of the private securities from sellers upon occurrence of a specified event. Buyers are required to pay the selling price for shares purchased (“settlement amounts”) and transaction fee defined in the contracts into a distribution or escrow account upon notice by the Company. Contracts with sellers require sellers to transfer the same amount and class of shares referenced in the contract between the Company and the corresponding buyers upon the occurrence of a specified event. When settlement amounts have been determined, and the price and transaction fees are paid by the buyer, payment-dependent notes receivable are recorded for the securities due from the sellers, and payment- dependent notes payable are recorded for the securities owed to the buyers. Amounts recorded at period-end for payment-dependent notes receivable represent the fair value of securities receivable from sellers, for which the securities settlement event has not occurred. Amounts recorded at period-end for payment-dependent notes payable represent the fair value of securities not yet delivered to the buyer. Changes in fair value of payment-dependent notes receivable and payment-dependent notes payable are recorded in other expense in the consolidated statements of operations. Warrant Liabilities The Company recognizes certain warrant instruments as derivative liabilities in accordance with ASC 815, Derivatives and Hedging. See Notes 3 "Recapitalization", 4 "Fair Value Measurements", and 11 "Warrants" for additional information. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the carrying value of the instruments to fair value at each reporting period until they are redeemed, exchanged, expired or exercised. The Company will continue to adjust the warrant liability for changes in the fair value until the earlier of a) the exercise, exchange or expiration of the warrants or b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in-capital. Revenue Recognition The Company generates revenue from fees charged for the trading of private shares through its platform, and fees for account and asset management provided to customers. The Company disaggregates revenue by service type, as management believes that this level of disaggregation best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are impacted by economic factors. The Company recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for services. To achieve the core principle of this standard, the Company applied the following five steps: 1.Identification of the contract, or contracts, with the customer; 2.Identification of the performance obligations in the contract; 3.Determination of the transaction price; 4.Allocation of the transaction price to the performance obligations in the contract; and 5.Recognition of the revenue when, or as, a performance obligation is satisfied. Revenue from Contracts with Customers The Company enters into contracts with customers that can include various services, which are capable of being distinct and accounted for as separate performance obligations. When applicable, an allocation of the transaction fees to the performance obligations or to the distinct goods or services that form part of a single performance obligation will depend on the individual facts and circumstances of the contract. All of the Company’s revenues are from contracts with customers. The Company is the principal in its contracts, with the exception of cash administration fees, in which the Company acts as an agent and records revenue from fees earned related to cash balances in customers’ custodial accounts. Contract assets represent amounts for which the Company has recognized revenue for contracts that have not yet been invoiced to our customers. The Company does not have any contract assets as of December 31, 2023 and 2022. Contract liabilities consist of deferred revenue, which relates to amounts invoiced in advance of performance under a revenue contract. The total contract liabilities of $0.4 million and $0.4 million as of December 31, 2023, and 2022, respectively, related to advance billings for data subscriptions, recorded in accrued expenses and other current liabilities on the consolidated balance sheets. The Company recognized $0.4 million of revenue during the year ended December 31, 2023 that was included in deferred revenue recorded in accrued expenses and other current liabilities at December 31, 2022. Each of our significant performance obligations and our application of ASC 606 to our revenue arrangements are discussed in further detail below: Marketplace revenue (previously called placement fee revenue) — The Company maintains a platform which generates revenue through its Forge Markets offering with volume-based fees sourced from institutions, individual investors and private equity holders. The Company earns agency marketplace revenue in non-underwritten transactions, such as private placements of equity securities. The Company enters into arrangements with individual accredited customers or Investment Funds to execute private placements in the secondary market. Marketplace revenue is charged by the Company for meeting the point-in-time performance obligation of executing a private placement on its platform. Placement fee rates are individually negotiated for each transaction and vary depending on the specific facts and circumstance of each agreement. These fees are event-driven and invoiced upon the closing of the transaction outlined in each agreement. These fees may be expressed as a dollar amount per share, a flat dollar amount, or a percentage of the gross transaction proceeds. The Company will receive marketplace revenue on these transactions and believes that its trade execution performance obligation is completed upon the placement and consummation of a transaction and, as such, revenue is earned on the transaction date with no further obligation to the customer at that time. The Company acts as a principal in the contract and recognizes marketplace revenue upon execution of a trade. Custodial Administration Fees — The Company generates revenues from account maintenance fees, asset fees, transaction fees, and cash administration fees. The cash administration fees are based on prevailing interest rates and customer cash balances, and currently make up the majority of custodial administration fee revenue. The Company charges administration fees for its services in maintaining custodial accounts, including asset-based fees, which are determined by the number and types of assets in these accounts. Cash administration fees are based on cash balances within the custodial accounts and are assessed on the last day of the month. The Company also earns fees for opening and terminating accounts, and facilitating transactions, which are assessed at the point of transaction. Account and asset fees are assessed on the first day of the calendar quarter. Revenues from custodial administration fees are recognized either over time as underlying performance obligations are met and day-to-day maintenance activities are performed for custodial accounts, or at a point in time upon completion of transactions requested by custodial account holders. Practical Expedients In certain arrangements, the Company receives payment from a customer either before or after the performance obligation has been satisfied; however, the contracts do not contain a significant financing component. The Company has applied the practical expedient in ASC 606 and excludes information about a) remaining performance obligations that have an original expected duration of one year or less and b) transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Transaction-Based Expenses Transaction-based expenses represent the fees incurred to support placement activities. These include, but are not limited to, third-party broker fees and transfer fees related to placement provided to brokerage customers to facilitate transactions and to a lesser extent those for fund management, and fund settlement expenses that relate to services provided to the Investment Funds. Revenue by Geographic Location For the years ended December 31, 2023, 2022, and 2021, revenue outside of the United States (including U.S. territories), based on customer billing address, was $4.7 million, $6.9 million, and $20.0 million, respectively. Share-Based Compensation The Company recognizes share-based compensation expense for all share-based awards, primarily stock options, restricted stock awards ("RSAs"), and restricted stock units ("RSUs"), based on the grant date fair value of the awards on a straight-line basis over the requisite service period of the awards, which is generally the award's vesting term. The fair value of stock options is determined using the Black-Scholes option pricing model and the fair value of RSAs and RSUs is based on the closing price of the Company's common stock on the grant date. Forfeitures are accounted for as they occur. For all awards with a market-based conditions and certain awards with performance-based conditions, the Company uses a Monte Carlo simulation to determine the fair value and the derived service period at the grant date and recognizes share-based compensation expense using an accelerated attribution method when it becomes probable that the performance-based condition will be met. Advertising and Market Development Advertising costs are expensed as incurred and include advertising and trade shows. Advertising costs amounted to $2.3 million, $3.3 million, and $2.9 million for the years ended December 31, 2023, 2022, and 2021, respectively, and are included in advertising and market development in the consolidated statements of operations. Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax assets and liabilities are determined based on temporary differences between the basis used for financial reporting and income tax reporting purposes. Deferred income taxes are provided based on the enacted tax rates and laws that will be in effect at the time such temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize those tax assets through future operations. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more likely than not of being realized and effectively settled. The Company considers many factors when evaluating and estimating the Company’s tax positions and tax benefits, which may require periodic adjustments, and which may not accurately reflect actual outcomes. The Company recognizes interest and penalties on unrecognized tax benefits as a component of provision for income taxes in the consolidated statements of operations. Foreign Currency The Company's reporting and functional currency is the U.S. dollar ("USD"). For financial reporting purposes, the Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates on the balance sheet date, except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are translated using the average exchange rate for the period. Cumulative translation gains and losses are included in accumulated other comprehensive loss. Comprehensive Loss Comprehensive income or loss consists of Net income or loss and Other comprehensive income or loss. The Company's Other comprehensive income or loss is comprised of foreign currency translation gains and losses and changes in equity during a period from noncontrolling interests excluding those resulting from contributions and distributions to owners. Accumulated comprehensive loss, as presented in the consolidated financial statements consists of changes in unrealized gains and losses on foreign currency translation. Net Loss Per Share Attributable to Common Stockholders Prior to the Business Combination, the Company computed net loss per share using the two-class method required for participating securities. The two-class method required income attributable to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. All of the Company's participating securities, in the form of convertible preferred stock, were converted into common stock of the Company upon consummation of the Business Combination. The prior holders of convertible preferred stock had dividend rights in the event of a declaration of a dividend for shares of common stock. However, the participating securities did not contractually require the holders of such securities to participate in the Company’s losses. Accordingly, net loss for the years ended December 31, 2023, 2022, and 2021 was only allocated to the Company’s common stockholders. The Company’s basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive shares are anti-dilutive. Recent Accounting Pronouncements In August 2023, the FASB issued ASU 2023-05 Business Combinations - Joint Venture Formations (“ASU 2023-05”), which addresses the accounting for contributions made to a joint venture. ASU 2023-05 requires joint ventures to measure all assets and liabilities upon formation at fair value. This guidance will be applied prospectively to all joint venture formations with a formation date on or after January 1, 2025. The Company is currently assessing the impact of the requirements on its consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) to expand reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. ASU 2023-07 applies to entities with a single reportable segment. Annual disclosures are required for fiscal years beginning after December 15, 2023. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented with early adoption permitted. The Company is currently assessing the impact of the requirements on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) to update income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively with early adoption permitted. The Company is currently assessing the impact of the requirements on its consolidated financial statements and disclosures. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the year ended December 31, 2023 that are of significance or potential significance to us.
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Recapitalization |
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Dec. 31, 2023 | |
Reverse Recapitalization [Abstract] | |
Recapitalization | Recapitalization As discussed in Note 1, "Organization and Description of Business," on the Closing Date, Legacy Forge completed the acquisition of MOTV and acquired 100% of MOTV’s shares and Legacy Forge received gross proceeds of $216.4 million, which included $7.9 million in proceeds from MOTV's trust and bank accounts, net of redemptions, $68.5 million in proceeds from the PIPE Investment (as defined below), and $140.0 million in proceeds from the A&R FPA (as defined below). The Company recorded $61.8 million of transaction costs, which consisted of legal, accounting, and other professional services directly related to the Merger, of which $58.7 million was related to common stock issued during the Merger and was recorded as a reduction to additional paid-in capital. The remaining $3.1 million was related to issuance of Public and Private Placement Warrants, including warrants issued to A&R FPA investors, and was expensed immediately upon consummation of the Merger as acquisition-related transaction cost in the consolidated statements of operations. The cash outflows related to these costs were presented as financing activities in the Company’s consolidated statements of cash flows. Deferred offering costs were offset against proceeds upon accounting for the consummation of the Merger. In addition, upon closing of the Merger, certain executives received a one-time transaction bonus for an aggregate amount of $17.7 million, of which $12.2 million was to be paid to the executives in cash, and the remaining amount $5.5 million was offset against outstanding promissory notes that were due from these executives as of the Closing Date. The transaction bonus was included in compensation and benefits in the consolidated statements of operations for the year ended December 31, 2022. See Note 10, "Capitalization" for additional information. On the Closing Date, each holder of MOTV Class A ordinary stock received one share of the Company’s common stock, par value 0.0001, for each MOTV Class A ordinary share held prior to the Merger, and each holder of MOTV Class B ordinary stock received one share of the Company’s common stock, par value 0.0001, for each MOTV Class B ordinary share held prior to the Merger. See Note 10, "Capitalization", and Note 11, "Warrants", for additional details of the Company’s stockholders’ equity prior to and subsequent to the Merger. All equity awards of Legacy Forge were assumed by the Company and converted into comparable equity awards that are settled or exercisable for shares of the Company’s common stock. As a result, each outstanding stock option of Legacy Forge was converted into an option to purchase shares of the Company’s common stock based on the Exchange Ratio and each outstanding warrant of Legacy Forge was converted into a warrant to purchase shares of the Company’s common stock based on the Exchange Ratio. The Merger was accounted for as a reverse recapitalization with Legacy Forge as the accounting acquirer and MOTV as the acquired company for accounting purposes. Legacy Forge was determined to be the accounting acquirer since Legacy Forge's former management made up the majority of the Company's management team, Legacy Forge’s former management nominated or represented a majority of the Company’s board of directors, and Legacy Forge represented the majority of the continuing operations of the Company. Accordingly, all historical financial information presented in these consolidated financial statements represents the accounts of Legacy Forge and its wholly owned subsidiaries. Net assets were stated at historical cost consistent with the treatment of the transaction as a reverse recapitalization of Legacy Forge. Each public and private warrant of MOTV that was unexercised at the time of the Merger was assumed by the Company and represents the right to purchase one share of the Company’s common stock upon exercise of such warrant. PIPE Investment On March 21, 2022, concurrently with the execution of the Merger Agreement, MOTV entered into subscription agreements with certain investors, to which such investors collectively subscribed for an aggregate of 6,850,000 shares of the Company’s common stock at $10.00 per share for aggregate gross proceeds of $68.5 million (the “PIPE Investment”). The PIPE Investment was consummated concurrently with the closing of the Merger. Amended and Restated Forward Purchase Agreement On March 21, 2022, concurrently with the execution of the Merger Agreement, certain MOTV fund vehicles managed by an affiliate of MOTV purchased 14,000,000 units at $10.00 per unit, for an aggregate purchase price of $140.0 million in a private placement that closed substantially concurrently with the closing of the Business Combination under the Amended and Restated Forward Purchase Agreement (the “A&R FPA”). Each unit consists of one share of the Company’s common stock and one-third of one Public Warrant. The A&R FPA was consummated concurrently with the closing of the Merger.
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Fair Value Measurements |
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Fair Value Measurements | Fair Value Measurements Financial instruments consist of cash equivalents, restricted cash, accounts receivable, term deposits, accounts payable, accrued liabilities, payment-dependent notes receivable, payment-dependent notes payable, and warrant liabilities. Cash equivalents, payment-dependent notes receivable, payment-dependent notes payable, term deposits, and warrant liabilities are stated at fair value on a recurring basis. Restricted cash, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time these financial instruments are held to the expected receipt or payment date. The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):
(2) Includes $1.0 million term deposits required to fulfill the Company's obligations in connection with real estate lease agreements. (3) On December 18, 2023, the then outstanding Junior Preferred Stock Warrants were modified and replaced with the December 2023 Warrants. See Note 8, "Commitments and Contingencies" and Note 11, "Warrants" for additional information.
The Company classifies money market funds within Level 1 of the fair value hierarchy because the Company values these investments using quoted market prices. The Company classifies term deposits as level 2 of the fair value hierarchy because the Company values these investments using observable market inputs without quoted market prices. Payment-Dependent Notes Receivable and Payment-Dependent Notes Payable The Company classifies payment-dependent notes receivable and payment-dependent notes payable within Level 3 of the fair value hierarchy if the underlying securities are equity of private companies whose regular financial and nonfinancial information is generally not available other than when it is publicly disclosed, or significant unobservable inputs are used to estimate fair value. The Company estimates fair values of payment-dependent notes receivable and payment-dependent notes payable utilizing completed transactions made through the Company’s platform for the relevant private securities as well as mutual fund valuations of private companies as relevant data inputs. Legacy Forge Warrant Liabilities The Company's Legacy Forge warrant liabilities consisted of warrants to purchase Series B-1 preferred stock or subsequent round stock (the "Series B-1 Preferred Stock Warrants,") and Junior Preferred Stock Warrants (as defined below). The Company used a binomial lattice model in a risk-neutral framework to value Legacy Forge warrant liabilities for the year ended December 31, 2022 and a Black-Scholes option-pricing model to value the December 2023 Warrants for the year-end December 31, 2023. See Note 11, "Warrants", for additional information. Subsequent to the Merger, the Series B-1 Preferred Stock Warrants and Junior Preferred Stock Warrants were converted to common stock warrants. As a result, the Series B-1 Preferred Stock Warrants were remeasured at fair value prior to the conversion resulting in a change in fair value of $0.1 million for the year ended December, 31, 2022, which was recognized as a component of change in fair value of warrant liabilities within the consolidated statements of operations, and subsequently settled in additional paid-in capital as a result of the conversion to equity-classified common stock warrants. The Junior Preferred Stock Warrants were remeasured at fair value prior to the conversion to common stock warrants, which did not result in a change in fair value as of the conversion date. These warrants were liability-classified after the conversion into the common stock warrants as the Company's obligation with respect to these warrants is capped at a fixed monetary amount and may be settled in a variable number of common shares. On December 18, 2023, the then outstanding Junior Preferred Stock Warrants were modified and replaced with the "December 2023 Warrants". The December 2023 Warrants were issued at an exercise price of $3.9760 per share, with a cap of extended value of $5.0 million when net exercised, and without a cap when cash exercised. The Company calculated the fair value of the December 2023 Warrants using a Black-Scholes option-pricing model. The Company recorded changes in the fair value of the December 2023 Warrants of $2.0 million as change in fair value of warrant liabilities in the Company's consolidated statements of operations during the year ended December 31, 2023. Additionally, the Company recorded changes in fair value of the December 2023 Warrants attributable to the modification of $2.5 million as change in fair value of contingent liabilities within general and administrative expense in the Company's consolidated statements of operations during the year ended December 31, 2023. Under a net settlement of the December 2023 Warrants the number of shares issued would be variable when the fair value of the underlying shares exceeds a certain price. As a result, the Company concluded the warrants are not indexed to the Company's stock and remain liability-classified. See Note 8, "Commitments and Contingencies" and Note 11, "Warrants" for additional information. For the year-ended December 31, 2022 the Junior Preferred Stock Warrants were valued using a binomial lattice model in a risk-neutral framework. The Company estimated the fair value of the Junior Preferred Stock Warrants (1) as of December 31, 2022, using the following key assumptions:
The Company recorded changes in the fair value of the December 2023 Warrants and Junior Preferred Stock Warrant liability as follows (in thousands):
(1) The change in fair value of warrant liability is recorded in the consolidated statement of operations within Change in fair value of warrant liabilities. (2) The change in fair value of contingent liability in connection with the modification of the Junior Preferred Stock Warrants to the December 2023 Warrants is recorded in the consolidated statement of operations within General and administrative expense. Private Placement Warrants The Company classifies the Private Placement Warrants within Level 3 due to the valuation technique used to estimate fair value. To estimate the fair value of Private Placement Warrants, the Company used a binomial lattice model in a risk-neutral framework. The Private Placement Warrant liabilities were remeasured at fair value as of December 31, 2023 which resulted in a $4.5 million loss recognized as a component of change in fair value of warrant liabilities within the consolidated statements of operations for the year ended December 31, 2023. The significant assumptions used in the analysis were as follows for the years as of December 31, 2023 and 2022 respectively:
The Company recorded changes in the fair value of the liability related to the Private Placement Warrant as of December 31, 2023, and 2022, respectively in the following amounts (in thousands):
(1) The change in fair value of warrant liability is recorded in the consolidated statement of operations within Change in fair value of warrant liabilities. Transfers Into and Out of Level 3 The Company transfers financial instruments out of Level 3 on the date when underlying input parameters are readily observable from existing market quotes. The December 2023 Warrants were transferred from Level 3 to Level 2 upon modification as these warrants are valued using a Black-Scholes Option pricing model using observable market inputs. For payment-dependent notes payable and receivable, transfers from Level 3 to Level 1 generally relate to a company going public and listing on a national securities exchange. During the year ended December 31, 2023, there were no transfers of payment-dependent notes payable and receivable into or out of Level 3. During the year ended December 31, 2022 the transfer of Private Placement Warrants from Level 2 to Level 3 was due to the redemption and exercises of the Public Warrants which resulted in the lack of an identical instrument with a quoted price. See Note 11, "Warrants," for additional information. The following tables provide reconciliation for all financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2023 and 2022 (in thousands):
(1) On December 18, 2023, the then outstanding Junior Preferred Stock Warrants were modified and replaced with the December 2023 Warrants. See Note 8, "Commitments and Contingencies" and Note 11 "Warrants," for additional information. (2) Transfers into/out of the Level 3 classification are reflected at beginning-of-reporting period fair values in which the instrument transferred into or out of Level 3. The December 2023 Warrants transferred out of Level 3 classification on December 18, 2023. The Private Placement Warrants transferred into Level 3 classification on July 11, 2022.
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Consolidated Other Balance Sheet Components |
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Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Other Balance Sheet Components | Consolidated Other Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
Internal-Use Software, Property and Equipment, Net Internal-use software and property and equipment, net consisted of the following (in thousands):
For the years ended December 31, 2023, 2022, and 2021, the Company recorded depreciation expense related to property and equipment amounting to $0.2 million, $0.2 million, and $0.4 million, respectively. For the years ended December 31, 2023, 2022, and 2021 the Company also recorded impairment loss of $0.0 million, $0.2 million, and $0.0 million, respectively, primarily related to leasehold improvements and furniture and fixtures due to the impairment of a right-of-use asset following a sublease included in general and administrative expense within the consolidated statements of operations. See Note 7, "Leases," for additional information. For the years ended December 31, 2023, 2022, and 2021, the Company recorded amortization expense on capitalized internal-use software placed in service of $2.8 million, $1.8 million, and $0.2 million, respectively. The Company recorded $0.6 million, $0.0 million and $0.0 million of impairment loss for developed software that was put into service but will no longer be used, included in general and administrative expense within the consolidated statements of operations, for the years ended December 31, 2023, 2022, and 2021, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands):
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Goodwill and Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net The components of goodwill, intangible assets and accumulated amortization are as follows (in thousands):
Amortization expense related to finite-lived intangible assets for the years ended December 31, 2023, 2022, and 2021 was $4.0 million, $4.0 million, and $4.8 million, respectively, was included in depreciation and amortization in the accompanying consolidated statements of operations. The table below presents estimated future amortization expense for finite-lived intangible assets as of December 31, 2023 (in thousands):
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company leases real estate for office space under operating leases. As of December 31, 2023, the remaining lease terms varied from 0.75 years to 2.00 years. For one of its leases, the Company has an option to extend the lease term for a period of 3 years. This renewal option is not considered in the remaining lease term because it is not reasonably certain that the Company will exercise such option. Operating lease expense, included in rent and occupancy in the consolidated statements of operations, were as follows (in thousands):
(1) Operating lease expense is included in rent and occupancy in the consolidated statements of operations. (2) Sublease income is included in other income (expenses), net in the consolidated statements of operations. The table below presents additional information related to the Company’s operating leases (in thousands):
Future undiscounted lease payments under operating leases as of December 31, 2023 were as follows (in thousands):
As of December 31, 2023, the Company has entered into a lease which has not yet commenced and is therefore not part of the right-of-use asset and liability. This lease has undiscounted future payments of $5.5 million and will commence when the Company obtains possession of the underlying leased asset. Commencement date for this lease is March 8, 2024. During the year ended December 31, 2022, the Company ceased using one of its leased office spaces and made a decision to sublease this space to a third party. The sublease agreement was signed in April 2022. Based on the terms of the sublease agreement, the Company determined that the right-of-use asset related to this office space was impaired, and recorded an impairment loss of $0.3 million for the year ended December 31, 2022 in rent and occupancy in the consolidated statements of operations.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies The Company is subject to claims and lawsuits in the ordinary course of business, including arbitration, class actions and other litigation, some of which include claims for substantial or unspecified damages. The Company is also the subject of inquiries, investigations, and proceedings by regulatory and other governmental agencies. The Company reviews its lawsuits, regulatory inquiries and other legal proceedings on an ongoing basis and provides disclosures and records loss contingencies in accordance with the loss contingencies accounting guidance. The Company establishes an accrual for losses at management’s best estimate when the Company assesses that it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. If no amount within the range is considered a better estimate than any other amount, an accrual for losses is recorded based on the bottom amount of the range. The Company's accrual for probable and estimable loss contingencies was $1.9 million and $0.5 million as of December 31, 2023 and 2022, and is recorded in accrued expenses and other current liabilities on the consolidated balance sheets and expensed in general and administrative expenses in our consolidated statements of operations. We estimate the range of reasonably possible losses above amounts that have been recorded at $0.1 million to $10.5 million as of December 31, 2023. Legal Proceedings On January 7, 2022, Erika McKiernan, in her capacity as Stockholder Representative for the former stockholders of SharesPost, filed a lawsuit against the Company in the Court of Chancery of the State of Delaware, asserting claims in connection with the Agreement and Plan of Merger, dated as of May 10, 2020, by and among the Company, SharesPost, Thanksgiving Merger Sub, Inc., and Erika McKiernan as the Stockholder Representative, as amended on November 6, 2020 (the "SharesPost Merger Agreement”). In general, the complaint asserted breaches of the SharesPost Merger Agreement and sought declaratory judgements establishing those breaches. In December 2023, the parties agreed to settle this matter resulting in a cash payment of $0.3 million, the release of shares of the Company's common stock that had been held in escrow, and modification of the Junior Preferred Stock Warrants. See Note 11, "Warrants" for more information. On March 29, 2023, the Company was named as a defendant in a lawsuit brought by an alleged former warrant holder of the Company, in a case captioned Alta Partners, LLC v. Forge Global Holdings, Inc., No. 1:23-cv-2647 in the United States District Court for the Southern District of New York. On June 21, 2023, Plaintiff filed an amended complaint in the action. Plaintiff’s allegations include breaches of the Warrant Agreement dated December 15, 2020, breach of the implied covenant of good faith and fair dealing, and violation of Section 11 of the Securities Act of 1933, as amended (the "Securities Act"). Plaintiff’s complaint seeks, among other things, an award of money damages. On July 12, 2023, the Company filed a partial motion to dismiss in the action. On March 13, 2024, the court issued an opinion and order in connection with the motion to dismiss dismissing certain of the breach of contract claims, certain of the Section 11 claims, and the breach of the implied covenant of good faith and fair dealing claim. The court has set an initial pretrial conference for the parties for April 11, 2024. The Company disputes Plaintiff’s claims and intends to defend the suit vigorously. Our accrual and range of reasonably possible loss in excess of such accrual with respect to this matter is included in the amounts referenced above. The Company is involved in a legacy matter arising prior to the Company’s October 2019 acquisition of IRA Services, Inc. On May 6, 2019, IRA Services, Inc. was named as a defendant in a matter (see Todd Allen Yancey v. Edwin Blue, et al., case no. 19-civ-0251, as amended) alleging claims including conversion, breach of oral contract, breach of fiduciary duty, and fraudulent misrepresentation. Trial proceedings in this matter began on March 18, 2024. The Company believes the claims are without merit. The Company is unable to predict the outcome to resolve this action but any loss in connection with this matter would first be applied against the escrow. 401(k) Plan The Company has established a tax-qualified retirement plan under Section 401(k) of the Code for all of its U.S. employees, including executive officers, who satisfy certain eligibility requirements, including requirements relating to age and length of service. The Company matches 2% of every dollar contributed to the plan by employees, including executive officers, up to a maximum of $6,600. During the years ended December 31, 2023, 2022, and 2021, the Company recorded 401(k) contribution expense related to the defined contribution plan of $0.9 million, $1.0 million, and $0.5 million, respectively, in compensation and benefits in the Company’s consolidated statements of operations. Non-Cancelable Purchase Obligations In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties mainly for its operating leases, software products, and services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer, excluding operating lease obligations (see Note 7, "Leases," for additional information) as follows (in thousands):
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Regulatory |
12 Months Ended |
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Dec. 31, 2023 | |
Broker-Dealer [Abstract] | |
Regulatory | Regulatory We operate in a highly regulated environment and are subject to capital requirements, which may limit distributions to our company from its subsidiaries. Forge Securities LLC ("Forge Securities"), a wholly-owned subsidiary of the Company, is subject to SEC Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As such, Forge Securities is subject to the minimum net capital requirements promulgated by the SEC and has elected to calculate minimum capital requirements using the basic method permitted by Rule 15c3-1. As of December 31, 2023, Forge Securities had net capital of $14.0 million which was $13.6 million in excess of its required net capital of $0.4 million. As of December 31, 2022, Forge Securities had net capital of $12.4 million which was $12.2 million in excess of its required net capital of $0.3 million. Forge Trust Co., a wholly-owned subsidiary of the Company, is subject to South Dakota state trust regulatory requirements. South Dakota state legislature 51A-61-19.2 requires public trust companies registered within the state boundaries to pledge funds for the security of the trust creditors. Forge Trust Co. had $1.1 million and $1.0 million pledged on behalf of trust creditors as of December 31, 2023 and 2022, respectively; the pledges are reported in restricted cash and cash equivalents on the consolidated balance sheet.
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Capitalization |
12 Months Ended |
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Dec. 31, 2023 | |
Capitalization [Abstract] | |
Capitalization | Capitalization Pre-Merger Common Stock Prior to the Merger, Legacy Forge was authorized to issue up to 257,968,554 shares of its capital stock, of which 171,153,360 shares were designated as Class AA common stock ("Legacy Forge Class AA common stock"). Merger Transaction On the Closing Date and in accordance with the terms and subject to the conditions of the Merger Agreement, each share of Legacy Forge Class AA common stock, par value $0.00001 per share, was canceled and converted into the right to receive the applicable portion of the merger consideration comprised of the Company’s common stock, par value $0.0001 per share, based on the Exchange Ratio. In connection with the Merger, on the Closing Date, the Company amended and restated its certificate of incorporation to authorize 2,100,000,000 shares of capital stock, consisting of (i) 2,000,000,000 shares of common stock, par value $0.0001 per share and (ii) 100,000,000 shares of preferred stock. The holders of common stock have exclusive voting power. Each share of common stock is entitled to one vote per share. The Company’s board of directors has the authority to issue shares of preferred stock in one or more series and to determine the preferences, privileges, and restrictions, including voting rights, of those shares. Upon the consummation of the Business Combination, the Company’s common stock and warrants began trading on the NYSE under the symbol “FRGE” and “FRGE WS”, respectively. On July 11, 2022, the remaining Public Warrants were redeemed and delisted from the NYSE (see Note 11, "Warrants"). As of December 31, 2023, the Company had authorized 2,000,000,000 and 100,000,000 shares of common stock and preferred stock, respectively, and the Company had 176,899,814 shares of common stock and no shares of preferred stock issued and outstanding. Settlement of Nonrecourse Related-Party Promissory Notes In connection with the Merger, the Company entered into a loan offset agreement with certain executives (the “Loan Offset Agreement”) as a result of outstanding promissory notes that were due from such executives as of the Closing Date. As a result of the Loan Offset Agreement, the Company agreed to offset the after-tax value of the transaction bonus that the executives received in connection with the Merger against the entire outstanding balance of the nonrecourse promissory notes, including any unpaid interest, as of one day immediately prior to the Closing Date. See Note 3, "Recapitalization," for additional information. The total amount of outstanding promissory notes that were offset against the transaction bonus was $5.5 million, which included $1.3 million related to unvested shares included in accrued expenses and other current liabilities in the consolidated balance sheets. The related bonus expense was recorded as compensation and benefits in the consolidated statements of operations for the year ended December 31, 2022.
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Warrants |
12 Months Ended |
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Dec. 31, 2023 | |
Warrants [Abstract] | |
Warrants | Warrants Warrants to Purchase Series B-1 Convertible Preferred Stock or Subsequent Round Stock In May 2020, Legacy Forge entered into a Note and Warrant Purchase Agreement with investors pursuant to which it issued certain convertible notes (the “2020 Convertible Notes”). In connection with the issuance of the 2020 Convertible Notes, the note holders entered into a Note and Warrant Purchase Agreement for the options to purchase shares based on coverage of 5% of the 2020 Convertible Notes principal amounts (the “May 2020 Warrants”). The note holders could purchase either (i) the Series B-1 convertible preferred stock of Legacy Forge at Series B-1 price of $3.9760 or (ii) any subsequent round stock of Legacy Forge at the subsequent round price. The May 2020 Warrants have a five-year contractual life and may be exercised at any time during that period. In October 2020, Legacy Forge entered into a Warrant to Purchase Shares of Preferred Stock Agreement with investors for the options to purchase a coverage amount of $3.5 million in shares (the “October 2020 Warrants”). The investors were granted the right to purchase either the Series B-1 convertible preferred stock of Legacy Forge at Series B-1 price of $3.9760 or (ii) any subsequent round stock of Legacy Forge at the subsequent round price. The October 2020 Warrants have a ten-year contractual life and may be exercised at any time during that period. Prior to the Merger, the May 2020 Warrants and October 2020 Warrants (collectively, the "2020 Warrants") were classified as warrant liabilities in the consolidated balance sheets. Legacy Forge remeasured the 2020 Warrants at each balance sheet date to their fair value. See Note 4, "Fair Value Measurements" for additional information. Subsequent to the Merger, the 2020 Warrants were converted to Legacy Forge's common stock warrants. As a result, the 2020 Warrants were adjusted to fair value prior to the conversion, and then settled in additional paid-in capital as a result of the conversion to equity-classified common stock warrants. During the years ended December 31, 2022 and 2021, the Company recorded fair value adjustments of $0.1 million and $2.6 million for the 2020 Warrants, respectively, in change in fair value of warrant liabilities in the consolidated statements of operations. Warrants to Purchase Junior Preferred Stock In November 2020, in connection with the SharesPost acquisition, Legacy Forge issued a total of 3,122,931 warrants (the “Junior Preferred Stock Warrants”) to purchase shares of Legacy Forge's Junior Preferred Stock at an exercise price of $3.9760 per share, with a cap of extended value of $5.0 million. The Junior Preferred Stock Warrants have a five-year contractual life and may be exercised at any time during that period. Prior to the Merger, the warrants were classified as a liability in the consolidated balance sheets, as the Company's obligation with respect to these warrants was capped at a fixed monetary amount of $5.0 million and could be settled in a variable number of common shares. The Company remeasured the warrants at each balance sheet date using a hybrid method. See Note 4, "Fair Value Measurements" for additional information. Subsequent to the Merger, the Junior Preferred Stock Warrants were converted to the Company's common stock warrants. As a result, the Junior Preferred Stock Warrants were adjusted to fair value prior to conversion and remained classified as a liability. During the year ended December 31, 2022, 491,785 Junior Preferred Stock Warrants were net exercised in exchange for 123,379 shares of common stock. The change in fair value of warrant liabilities was recorded through the date of exercise as change in fair value of warrant liabilities within the consolidated statements of operations. Additionally, the fair value of the warrant liability as of the exercise date of $0.7 million was reclassified to additional paid-in capital within the consolidated balance sheets as of December 31, 2022. In December 2023, the Company modified a total of 2,631,146 Junior Preferred Stock Warrants (the "December 2023 Warrants"). The December 2023 Warrants were issued at an exercise price of $3.9760 per share, with a cap of extended value of $5.0 million when net exercised, and without a cap when cash exercised. The December 2023 Warrants remain classified as a liability See Note 8, "Commitments and Contingencies" for additional information. For the December 2023 Warrants and the Junior Preferred Stock Warrants, The Company recorded a loss of $2.0 million, a gain of $4.0 million and a loss of $3.5 million as change in fair value of warrant liabilities in the Company's consolidated statements of operations during the years ended December 31, 2023, 2022, and 2021, respectively. Additionally, the Company recorded $2.5 million as change in fair value of contingent liabilities within general and administrative expense in the Company's consolidated statements of operations during the year ended December 31, 2023 to capture the incremental expense related to the warrant modification. Public Warrants and Private Placement Warrants As the accounting acquirer, Legacy Forge was deemed to have assumed 7,386,667 warrants for Class A common stock that were held by Motive Capital Funds Sponsor, LLC (the “Sponsor”) at an exercise price of $11.50 (the "Private Placement Warrants"), 13,799,940 Class A common stock warrants held by MOTV's stockholders at an exercise price of $11.50 ("Public Warrants"), and 4,666,664 Public Warrants at an exercise price of $11.50 that were issued in connection with the A&R FPA that was consummated upon the Closing Date. The warrants are exercisable subject to the terms of the warrant agreement, including but not limited to, the Company having an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), covering the shares of common stock issuable upon exercise of the warrants and a current prospectus relating to them is available. The warrants expire five years after the completion of the Business Combination, or earlier upon redemption or liquidation. Subsequent to the Merger, the Private Placement Warrants and Public Warrants met liability classification requirements since the warrants may be required to be settled in cash under a tender offer. In addition, the Private Placement Warrants are potentially subject to a different settlement amount as a result of being held by the Sponsor which precludes the Private Placement Warrants from being considered indexed to the entity's own stock. Therefore, these warrants are classified as liabilities on the consolidated balance sheets. On June 9, 2022, the Company issued a redemption notice to warrant holders announcing that it would redeem all of its Public Warrants (including the 4,666,664 Public Warrants that were issued in connection with the A&R FPA) on July 11, 2022 at 5:00 p.m. New York City Time (the "Redemption Date") for $0.01 per Public Warrant (the "Redemption"). After such notice and prior to the Redemption Date, warrant holders were entitled to exercise the Public Warrants at an exercise price of $11.50 per share of the Company's common stock. Any Public Warrants not exercised by the Redemption Date were automatically redeemed by the Company at a price of $0.01 per Public Warrant. In connection with the Redemption, 1,994,790 Public Warrants were exercised at an exercise price of $11.50 per share of common stock, for an aggregate of 1,994,790 common shares. Total cash proceeds generated from such exercises were $22.9 million. The change in fair value of the warrant liabilities was recorded through the date of exercise as a change in fair value of warrant liabilities within the consolidated statements of operations. Additionally, the fair value of the warrant liability as of the exercise date of $0.7 million was reclassified to additional paid-in capital within the consolidated balance sheets. On July 11, 2022, the remaining 16,471,814 Public Warrants still outstanding were redeemed at a price of $0.01 per Public Warrant for an aggregate cash payment from the Company of $0.2 million. On July 11, 2022, the Public Warrants were delisted from the NYSE.
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Share-Based Compensation |
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Share-Based Compensation | Share-Based Compensation Prior Stock Plan In March 2018, Legacy Forge adopted its 2018 Equity Incentive Plan (as amended from time to time, the “2018 Plan”), which provided for grants of share-based awards, including stock options, restricted stock awards (“RSAs”), and other forms of share-based awards. The 2018 Plan was terminated in March 2022 in connection with the adoption of the 2022 Stock Option and Incentive Plan (the “2022 Plan”). Accordingly, no shares are available for future grants under the 2018 Plan following the adoption of the 2022 Plan. 2022 Plan In March 2022, prior to and in connection with the Merger, the Company adopted the 2022 Plan, which provides for grants of share-based awards, including stock options, restricted stock units (“RSUs”), and other forms of share-based awards. The Company authorized 18,076,331 shares of common stock for the issuance of awards under the 2022 Plan. In addition, the number of shares of common stock reserved and available for issuance under the 2022 Plan will automatically increase on January 1 of each year for a period of ten years, beginning on January 1, 2023 and on each January 1 thereafter and ending on the tenth anniversary of the adoption date of the 2022 Plan, in an amount equal to (i) 3% of the outstanding number of shares of common stock of the Company on the preceding December 31, or (ii) a lesser number of shares as approved by the Company's board of directors. 2022 Employee Stock Purchase Plan In March 2022, prior to and in connection with the Merger, the Company adopted the 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP authorizes the issuance of 5,797,609 shares of common stock under purchase rights granted to the Company's employees or to employees of any of its designated affiliates. The number of shares of common stock reserved for issuance will automatically increase on January 1 of each year, beginning on January 1, 2023 and each January 1 thereafter until the 2022 ESPP terminates according to its terms, by the lesser of (i) 4,072,000 shares of common stock, or (ii) 1% of the outstanding number of shares of common stock on the immediately preceding December 31. The Company's board of directors may determine that such increase will be less than the amount set forth in (i) and (ii) above. Reserve for Issuance The Company has the following shares of common stock reserved for future issuance, on an as-if converted basis:
(1) Effective June 15, 2023, the Company cancelled the CEO Option (as defined below), which was granted under the 2018 Plan. As a result of such cancellation, the 3,122,931 shares of common stock underlying the CEO Option became available for future awards under the 2022 Plan. (2) To the extent outstanding options granted under the 2018 Plan are cancelled, forfeited, or otherwise terminated without being exercised and would have been returned to the share reserve under the 2018 Plan following the closing date of the Merger, the number of shares of common stock underlying such awards will be available for future awards under the 2022 Plan. Stock Compensation The share-based compensation expense for the periods indicated below are as follows (in thousands):
Unrecognized share-based compensation expense for unvested RSUs and stock options granted and outstanding as of December 31, 2023 was $40.7 million and $4.3 million, which will be recognized over a weighted-average period of 1.9 years and 1.4 years, respectively. Stock Options Stock options generally vest over four years and expire ten years from the date of grant. Vested stock options generally expire three months to five years after termination of employment. Stock option activity during the year ended December 31, 2023, consisted of the following (in thousands, except for share and per share data):
(1) Effective June 15, 2023, the Company cancelled the CEO Option (as defined below), which was granted under the 2018 Plan. As a result of such cancellation, the 3,122,931 shares of common stock underlying the CEO Option became available for future awards under the 2022 Plan. There were no stock options granted during the years ended December 31, 2023 and 2022. The weighted-average grant date fair value of stock options granted during the year ended December 31, 2021 was $2.90 per share. The total grant date fair value of stock options vested during the years ended December 31, 2023, 2022, and 2021 was $4.9 million, $13.0 million and $4.0 million, respectively. The total intrinsic value of options exercised during the years ended December 31, 2023, 2022, and 2021 was $2.4 million, $5.1 million and $14.2 million, respectively. Early Exercised Options Under the 2018 Plan, certain stock option holders may have the right to exercise unvested options, subject to a repurchase right held by the Company at the original exercise price, in the event of voluntary or involuntary termination of employment of the option holders, until the options are fully vested. As of December 31, 2023 and December 31, 2022, the cash proceeds received for unvested shares of common stock recorded within accrued expenses and other current liabilities in the consolidated balance sheets were $0.2 million and $0.6 million, respectively, which will be transferred to additional paid-in capital upon vesting. Performance and Market Condition Options In May 2021, Legacy Forge’s board of directors granted the Chief Executive Officer a performance and market condition-based option covering 3,122,931 shares of Legacy Forge's Class AA common stock with an exercise price of $3.9760 per share (the "CEO Option"). The awards vest only upon the satisfaction of (1) certain performance conditions, which is the occurrence of an IPO, merger with a SPAC, or a secondary sale for total proceeds of at least $250.0 million, and (2) a market condition, which is holders of Legacy Forge's B-1 convertible preferred stock having realized (i) aggregate exit proceeds with fair market value of at least $9.94, $14.91, and $19.88 per share (the “Share Price Thresholds”); and (ii) an aggregate interest rate compounded annually which, when used as the discount rate to calculate the net present value, with respect to the occurrence of an IPO, merger with a SPAC or acquisition, that is equal to or greater than 20.0%, 30.0% and 35.0% (the “IRR Thresholds,” and together with the Share Price Thresholds, the “Aggregate Exit Proceeds Thresholds”). Upon consummation of the Business Combination, the performance condition was met and the Company recorded cumulative catch-up compensation expense of $4.6 million in the year ended December 31, 2022. Effective June 15, 2023, and pursuant to approval by the Company's stockholders at the Company's 2023 annual stockholder meeting held on June 14, 2023 (the "Annual Meeting"), the Company cancelled the CEO Option and concurrently granted a market-based RSU award (the “CEO RSU”) representing the right to receive up to 2,339,030 shares of the Company’s common stock under the 2022 Plan based on the achievement of three specified stock price performance metrics. The CEO RSU is divided into three tranches that will vest if the average closing price of the Company’s common stock meets or exceeds $4.00, $8.00, or $12.00 for any trailing 20 trading day period. The CEO RSU will be forfeit when the Chief Executive Officer ceases to provide services to the Company. The Company concluded that the cancellation of the CEO Option and the concurrent grant of a replacement award, the CEO RSU, was accounted for as a modification of the terms of the cancelled award. The vesting condition in connection with the achievement of a target price per common stock share qualifies as a market condition, and the condition related to continuous service as the Chief Executive Officer qualifies as a service condition. The total incremental costs related to the cancelled CEO Option and reissued CEO RSU was $0.3 million. Total compensation expense recognized for the CEO Option and CEO RSU, including incremental costs related to the modification, in the years ended December 31, 2023, 2022, and 2021 was $0.7 million, $6.3 million, and $0.0 million, respectively. As of December 31, 2023, the market condition had not been met and none of the CEO RSU was vested. Options Granted to Directors In July 2021, Legacy Forge’s board of directors granted options to certain members of the board (the "Board Performance Options") in connection with their services to purchase 499,669 shares of Legacy Forge's Class AA common stock at exercise price of $5.43 per share. Subject to the option agreement, the options vested in full and became exercisable immediately prior to the Closing Date. The Company recorded $1.2 million of share-based compensation expense related to the Board Performance Options during the year ended December 31, 2022. RSUs The Company’s RSUs are convertible into shares of the Company’s common stock upon vesting on a one-to-one basis, and generally contain time-based vesting conditions. RSUs granted to certain executives (the “Executive Retention RSUs”) also contain market-based vesting conditions (the "Executive Retention RSUs") or performance-based vesting conditions (the "Executive Performance RSUs"). The RSUs generally vest over the service period of to four years. RSU activity during the year ended December 31, 2023 was as follows:
(1) In connection with the cancellation of the CEO Option, the Company granted 2,339,030 market-based RSUs. See Performance and Market Condition Options above for additional information. (2) Common stock has not been issued in connection with 69,987 vested RSUs because such RSUs were unsettled as of December 31, 2023. The total grant date fair value of shares vested during the years ended December 31, 2023 and 2022 was $35.4 million and $8.4 million, respectively. Executive Retention RSUs On June 1, 2022, as a result of the consummation of the Merger, the Compensation Committee of the Company's board of directors granted a total of 1,859,137 RSUs to certain executives (the “Executive Retention RSUs”) that contained market-based vesting conditions in addition to time-based vesting conditions. The Executive Retention RSUs vest in three equal tranches on the earlier of: (1) first, second and third anniversaries of the consummation of the Merger, respectively, (the “Time Vesting Component”) or (2) achievement of following market-based conditions: (a) in the event the Company’s stock price meets or exceeds the price of $12.50 per share during the RSU Measurement Period (defined below), the first tranche will vest immediately, and the Time Vesting Component of the second and third tranches will be accelerated by six months; (b) in the event the Company’s stock price meets or exceeds the price of $15.00 per share during the RSU Measurement Period (defined below), the second tranche will vest immediately, and the Time Vesting Component of the third tranche will be accelerated by an additional six months. The RSU Measurement Period is equal to 20 trading days within any 30 trading day period commencing upon the expiration of a six month lock-up period following the Merger. As of December 31, 2023 the lock-up period has expired. The fair value per share for the Executive Retention RSUs was determined by reference to the market price of the Company’s shares at the date of the grant, which was $20.26 per share. The Company used the Monte Carlo simulation model to determine the derived service period for the Executive Retention RSUs for the purposes of calculating the respective share-based compensation expense. The significant inputs used in the valuation included the Company's closing stock price as of the grant date of $20.26, cost of equity of 9.0%, dividend yield of 0.0%, volatility of 35.7%, and risk-free rate of 2.8%. The derived service period for the first, second, and third tranche of the Executive Retention RSUs was 0.40 years, 0.40 years, and 1.80 years, respectively. 469,010 Executive Retention RSUs were vested as of December 31, 2023. During the years ended December 31, 2023 and 2022, the Company recognized share-based compensation expense of $5.3 million and $24.3 million, respectively. Unrecognized share-based compensation expense for unvested Executive Retention RSUs as of December 31, 2023 was $1.1 million, which is to be recognized over a weighted-average period of 0.2 years. Executive RSUs On April 24, 2023, the Compensation Committee and the board of directors granted a total of 4.9 million RSUs to certain executives. 3.1 million of the RSUs granted are subject to time-based vesting conditions (the "Time-Based RSUs") and 1.8 million of the RSUs granted are subject to performance-based vesting conditions upon certification by the Compensation Committee and the Company's Board of Directors, in addition to time-based vesting conditions (the "Performance-Based RSUs," and together with the Time-Based RSUs, the "Executive RSUs"). The fair value per share for the Executive RSUs was determined by reference to the market price of the Company's shares at the date of the grant, which was $1.46 per share. On January 31, 2024, the performance-based vesting conditions of the Performance-Based RSUs were certified by the Compensation Committee and the board of directors based on the extent of achievement of the Company's revenue goals for the fiscal year ended December 31, 2023. Accordingly, the Performance-Based RSUs will vest in accordance with their terms, subject to the applicable executive's continued service through each applicable vesting date. Modifications During the year ended December 31, 2022, the Company modified options of five of its employees in connection with terminations of their employment and subsequent transition to service providers under consulting agreements. Under the terms of ASC 718 these employees were not obliged to perform substantive consulting services to the Company for the continued vesting of their options. The Company recognized incremental share-based compensation expense as the difference between the fair value of the options before and after the modifications. The Company calculated the fair value of the options before and after modification using current valuation inputs including the Company’s stock price of $3.79 - $17.71, a volatility metric 38.4% - 48.1%, a risk-free interest rate of 0.9% - 3.6% and an expected life 1.0 - 5.5 years. The incremental fair value of the options resulting from the modifications was $2.2 million that was recognized as part of the share-based compensation expense during the year ended December 31, 2023. In December 2022, the Company accelerated vesting of 251,364 stock options and 210,987 Executive Retention RSUs as part of the severance package of one of its executives in connection with the termination of his employment with the Company. As a result, the Company recognized incremental share-based compensation expense of $0.5 million calculated by using the modification date valuation inputs including the Company’s stock price of $1.52, a volatility metric of 47.3%, a risk-free interest rate of 4.1% and an expected life of 3.0 years. In connection with this employment termination, the Company also reversed a portion of the previously recognized share-based compensation expense resulting in a reduction to share-based compensation of $4.4 million, net of incremental expense as well as additional share-based compensation recognized due to the acceleration of unvested shares under the executive's original employment terms. In June 2023, the Company cancelled the CEO Option and concurrently granted the CEO RSU. See Performance and Market Condition Options above for additional information.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The components of the loss before income taxes were as follows (in thousands):
The components of the provision for income taxes were as follows (in thousands):
Reconciliation of the statutory federal income tax to the Company's effective tax is as follows (amounts in thousands):
(1) Immaterial correction of error of $8.3 million to the change in fair value of warrant liabilities and related $1.8 million to state income taxes for the year ended December 31, 2022. This correction had no impact on the consolidated balance sheet as of December 31, 2022 and the consolidated statements of operations, stockholders' equity and cash flows for the year ended December 31, 2022. Significant components for the Company's net deferred tax liabilities included in accrued expenses and other current liabilities in the consolidated balance sheets are as follows (in thousands):
(1) The components of the Company's deferred tax assets and valuation allowance as of December 31, 2022 have been adjusted to reflect immaterial corrections identified during the year ended December, 31 2023. This correction had no impact on the consolidated balance sheet as of December 31, 2022 and the consolidated statements of operations, stockholders' equity and cash flows for the year ended December 31, 2022. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management believes it is more likely than not that the deferred tax assets will not be realized; accordingly, a valuation allowance has been established on U.S. and foreign gross deferred tax assets. The Company's valuation allowance increased $15.3 million and $21.7 million during the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company has net operating loss carryforwards for federal income tax purposes of $92.4 million available to reduce future income subject to income taxes. The federal net operating loss carryforwards of $11.1 million will begin to expire, if not utilized, in fiscal year 2037. The remaining amount of federal net operating loss carryforwards will be carried forward indefinitely. In addition, the Company has $75.8 million and $25.5 million of net operating loss carryforwards available to reduce future taxable income subject to California state income taxes and all other applicable state jurisdictions, respectively. The California net operating loss carryforwards will begin to expire, if not utilized, in fiscal year 2036. The foreign net operating loss carryforwards of $0.7 million will be carried forward indefinitely. The other states’ net operating loss carryforwards will begin to expire, if not utilized, in fiscal year 2037. Under Section 382 of the Internal Revenue Code of 1986, as amended, the Company's ability to utilize net operating loss carryforwards or other tax attributes in any taxable year may be limited if the Company has experienced an ownership change. As of December 31, 2023, the Company has concluded that it has experienced ownership changes since inception and that its utilization of net operating loss carryforwards will be subject to annual limitations. However, it is not expected that the annual limitations will result in the expiration of the tax attribute carryforwards prior to utilization. Changes in our unrecognized tax benefits are summarized as follows (in thousands):
During the years ended December 31, 2023, 2022, and 2021, interest and penalties were immaterial. The Company does not expect any significant change in its unrecognized tax benefits during the next twelve months that would be material to the consolidated financial statements. All of the unrecognized tax benefits would impact the effective tax rate. The Company is subject to taxation in the United States and various foreign jurisdictions. All net operating losses incurred to date are subject to adjustment for U.S. federal income tax purposes, except for the years 2017 to 2019, where the statute of limitations has expired, and for state income tax purposes. Furthermore, as of December 31, 2023, all tax years remain open to examination in the foreign jurisdictions where we operate in.
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Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss per Share Prior to the Merger and prior to effecting the recapitalization, the holders of Legacy Forge's Class AA, Class EE-1, and Class EE-2 common stock were entitled to the same right to participate in the Company’s gains or losses. Therefore, net loss per share is presented as a single class of common stock. Earnings per share calculations for all periods prior to the Merger have been retrospectively restated to the equivalent number of shares reflecting the Exchange Ratio established in the reverse capitalization. Subsequent to the Merger, the Company has one class of common stock. The diluted net loss per share attributable to common stockholders is calculated by giving effect to all potentially dilutive common stock equivalents during the period using the two-class method. The Company’s stock options, warrants, and early exercised stock options are considered to be potential common stock equivalents but have been excluded from the calculation of diluted net loss per share attributable to common stockholders because the holders of these securities do not have a contractual right to share in the Company's losses, and their effect would be antidilutive. Therefore, the net loss for the year ended December 31, 2023 and 2022 was attributed to common stockholders only. The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except for share and per share data):
The following potentially dilutive shares were excluded in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:
(1) Conversion of preferred stock to common stock as part of the Merger. See Note 10, "Capitalization", and Note 11, "Warrants", for additional details of the Company’s stockholders’ equity prior to and subsequent to the Merger.
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Related Party Transactions |
12 Months Ended |
---|---|
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions On September 7, 2022 the Company and DBAG formed a subsidiary, Forge Europe GmbH. DBAG is a stockholder of the Company and one of the Company's directors is affiliated with this entity. See Note 1, "Organization and Description of Business," for additional information. Financial Technology Partners LP (“Financial Technology Partners”), a stockholder of the Company and affiliated entity of Steven McLaughlin, one of the Company's former directors, previously served as financial and strategic advisor to the Company on its financing, merger, and acquisition transactions. During the year ended December 31, 2022, the Company incurred $18.3 million in fees to Financial Technology Partners, of which $17.4 million was related to common stock issued during the Merger and was recorded as a reduction to additional paid-in capital. The remaining $0.9 million was related to issuance of Public and Private Placement Warrants, including warrants issued to A&R FPA investors, and was expensed immediately upon consummation of the Merger as acquisition-related transaction cost in the consolidated statements of operations. Mr. McLaughlin resigned from the Company's board of directors on May 27, 2022. As a result, each of Mr. McLaughlin and Financial Technology Partners ceased being a related party in the quarter ended June 30, 2022. Prior to the Business Combination, one of Legacy Forge's directors was also a director of Temasek Holding (Private) Limited ("Temasek"). Temasek, through its wholly-owned subsidiary, Ossa Investments Pte. Ltd, purchased 1,000,000 shares of the Company's common stock (for a purchase price of $10.0 million) in the PIPE Investment, concurrently and in connection with the closing of the Business Combination. This transaction was on the same terms as the other investors who purchased shares in the PIPE Investment pursuant to certain subscription agreements dated September 13, 2021. Prior to November 2022, Temasek was a 5% stockholder of the Company and thus a related party. Effective November 2022, Temasek ceased being a 5% stockholder and thus a related party based on the Company's outstanding stock. The Company entered into customer engagement agreements with certain companies to serve as exclusive transaction agent to help facilitate private purchases of shares of issuers. These companies are identified as related parties who are holders of the Company’s common stock. The Company recognized $1.2 million in marketplace revenue (previously called placement fee revenue) in the consolidated statements of operations for trades executed with these companies for the year ended December 31, 2021. The associated revenue recognized for the years ended December 31, 2023 and 2022 is immaterial. Forge Global Advisors LLC ("FGA"), a wholly-owned subsidiary of the Company and an investment adviser registered under the Investment Advisers Act of 1940, as amended, advises investment funds, each of which are organized as a series of Forge Investments LLC and segregated portfolio companies of Forge Investments SPC and Forge Investments II SPC (such investment funds and portfolio companies are individually and collectively referred to as “Investment Funds”). The Investment Funds are each formed for the purpose of investing in securities relating to a single private company and are owned by different investors. Effective January 1, 2023, FGA serves as the manager of the Forge Investments LLC series Investment Funds. Prior to January 1, 2023, the Forge Investments LLC series Investment Funds were managed by a third-party fund administrator. The Company utilizes a third-party fund administrator to manage the Forge Investments SPC and Forge Investments II SPC Investment Funds. The Company has no ownership interest nor participation in the gains or losses of the Investment Funds. The Company does not consolidate Forge Investments LLC, Forge Investments SPC, Forge Investments II SPC, or any of the Investment Funds, because the Company has no direct or indirect interest in the Investment Funds and the amount of expenses the Company pays on behalf of the Investment Funds are not significant to the entities. Investors in the Investment Funds do not have any recourse to the assets of the Company. While not contractually required, FGA may, at its sole discretion, absorb certain expenses on behalf of the Investment Funds. Transaction-based expenses include fund insurance and fund management expenses and are recorded in transaction-based expenses in the consolidated statements of operations. Audit and accounting related services are recorded in professional services in the consolidated statements of operations. Professional services expenses of $1.1 million, $0.9 million and $0.8 million were recognized in the consolidated statements of operations during the years ended December 31, 2023, 2022, and 2021 respectively. Transaction-based expenses of $0.0 million, $0.3 million and $0.6 million were recognized during the years ended December 31, 2023, 2022, and 2021 respectively. A family member of one of the Company’s executive officers is a portfolio manager for investment funds that engage in secondary transactions with the Company in the ordinary course of business. Such transactions became related party transactions upon the employee's appointment to executive officer in April 2023. For the years ended December 31, 2023 and 2022, the total value of such transactions was $11.3 million and $0.0 million, respectively, and the aggregate marketplace revenue (less transaction-based expenses) that the Company received from the funds for such transactions was $0.3 million and $0.0 million, respectively.
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Subsequent Events |
12 Months Ended |
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Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company has analyzed its operations subsequent to December 31, 2023 to the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose or recognize in the accompanying financial statements.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
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Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (90,221) | $ (111,859) | $ (18,499) |
Insider Trading Arrangements |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2023
shares
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Dec. 31, 2023
shares
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Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 15, 2023, the following officers each adopted trading plans (the "STC Plans") providing exclusively for the sale of shares necessary to satisfy tax withholding obligations arising from the settlement of RSUs: 1) Mr. Rodriques, 2) Mark Lee, the Company's Chief Financial Officer, 3) Mr. Sievers, 4) Ms. Phillips, 5) Johnathan Short, the Company's Chief Legal Officer, and 6) Catherine Dondzila, the Company's Chief Accounting Officer. The STC Plans are intended to satisfy the affirmative defensive conditions of Rule 10b5-1(c). The number of shares each STC Plan may sell to satisfy applicable tax withholding obligations upon settlement is indeterminable as the number will vary based on factors such as the extent to which vesting conditions for current and future RSU awards are satisfied, as well as the market price of the Company's common stock at the time of settlement. The duration of each STC Plan is indefinite as they cover tax withholding obligations for all RSU awards granted to such officers as of the adoption date, as well as any RSU awards that may be granted after such date. | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Kelly Rodriques [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 8, 2023, Kelly Rodriques, the Company's Chief Executive Officer, modified a trading plan he had previously adopted with respect to the sale of the Company's common stock to increase the number of shares covered by the plan. Mr. Rodriques' initial plan was adopted on June 2, 2023. Mr. Rodriques' amended plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. The plan provides for the sale of up to 3,989,958 shares, which assumes the maximum achievement of performance conditions of RSU awards included in the plan. Such awards include 2,339,030 performance RSUs approved by the Company’s stockholders at the Company’s 2023 annual stockholder meeting held on June 14, 2023 (the “CEO RSU”). The CEO RSU is divided into three tranches that will only vest if three separate stock-price based performance metrics of $4.00, $8.00, and $12.00 are met for any trailing 20 trading day period, as described more fully in the Company’s definitive proxy statement filed on April 28, 2023. Accordingly, the actual number of shares sold will depend on the extent to which such vesting conditions are satisfied, as well as the number of shares that may be withheld or sold to cover tax withholding obligations upon the settlement of RSUs. The termination date of the plan is the earliest to occur of all shares under the plan being sold or December 31, 2024. | |
Drew Sievers [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 15, 2023, Drew Sievers, the Company's Chief Operating Officer, adopted a trading plan for the sale of the Company's common stock that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. The plan provides for the sale of up to 225,000 shares. The termination date of the plan is the earliest to occur of all shares under the plan being sold or December 31, 2024. | |
Jennifer Phillips [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On December 15, 2023, Jennifer Phillips, the Company's Chief Growth Officer, modified a trading plan she had previously adopted with respect to the sale of the Company's common stock to increase the number of shares covered by the plan. Ms. Phillips' initial plan was adopted on September 22, 2022. Ms. Phillips' amended plan is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act. The plan provides for the sale of up to 1,736,546 shares. The actual number of shares sold will depend on the number of shares that may be withheld or sold to cover tax withholding obligations upon the settlement of RSUs. The termination date of the plan is the earliest to occur of all shares under the plan being sold or October 21, 2024. | |
Catherine Dondzila [Member] | ||
Trading Arrangements, by Individual | ||
Name | Catherine Dondzila | |
Title | Chief Accounting Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Johnathan Short [Member] | ||
Trading Arrangements, by Individual | ||
Name | Johnathan Short | |
Title | Chief Legal Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Mark Lee [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mark Lee | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Kelly Rodriques June 2023 Plan [Member] | Kelly Rodriques [Member] | ||
Trading Arrangements, by Individual | ||
Name | Kelly Rodriques | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | December 8, 2023 | |
Kelly Rodriques December 2023 Plan [Member] | Kelly Rodriques [Member] | ||
Trading Arrangements, by Individual | ||
Name | Kelly Rodriques | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 8, 2023 | |
Arrangement Duration | 389 days | |
Aggregate Available | 3,989,958 | 3,989,958 |
Kelly Rodriques December 2023 Plan RSUs [Member] | Kelly Rodriques [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 2,339,030 | 2,339,030 |
Drew Sievers December 2023 Plan [Member] | Drew Sievers [Member] | ||
Trading Arrangements, by Individual | ||
Name | Drew Sievers | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Arrangement Duration | 382 days | |
Aggregate Available | 225,000 | 225,000 |
Jennifer Phillips September 2022 Plan [Member] | Jennifer Phillips [Member] | ||
Trading Arrangements, by Individual | ||
Name | Jennifer Phillips | |
Title | Chief Growth Officer | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | December 15, 2023 | |
Jennifer Phillips December 2023 Plan [Member] | Jennifer Phillips [Member] | ||
Trading Arrangements, by Individual | ||
Name | Jennifer Phillips | |
Title | Chief Growth Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Arrangement Duration | 311 days | |
Aggregate Available | 1,736,546 | 1,736,546 |
Drew Sievers STC Plan [Member] | Drew Sievers [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mr. Sievers | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Kelly Rodriques STC Plan [Member] | Kelly Rodriques [Member] | ||
Trading Arrangements, by Individual | ||
Name | Mr. Rodriques | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 | |
Jennifer Phillips STC Plan [Member] | Jennifer Phillips [Member] | ||
Trading Arrangements, by Individual | ||
Name | Ms. Phillips | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | December 15, 2023 |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation and Consolidation The accompanying consolidated financial statements include the accounts of the Company, and its subsidiaries and have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). All intercompany balances and transactions have been eliminated in consolidation.
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Consolidation | In the normal course of business, the Company has transactions with various investment entities. In certain instances, the Company provides investment advisory services to pooled investment vehicles (each, an “Investment Fund”). The Company does not have discretion to make any investment, except for the specific investment for which an Investment Fund was formed. The Company performs an assessment to determine (a) whether the Company’s investments or other interests will absorb portions of a variable interest entity’s expected losses or receive portions of the entity’s expected residual returns and (b) whether the Company’s involvement, through holding interests directly or indirectly in the entity would give it a controlling financial interest. The Company consolidates entities in which it, directly or indirectly, is determined to have a controlling financial interest. Consolidation conclusions are reviewed quarterly to identify whether any reconsideration events have occurred. |
Segment Information | Segment Information The Company operates as a single operating segment and reportable segment. The Company’s chief operating decision maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, allocating resources and evaluating the Company’s financial performance.
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Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant management estimates include collectability of accounts receivable, the fair value of financial assets and liabilities, the carrying value of long-lived assets and goodwill, the fair value of warrants, contingent liabilities, equity awards, share-based compensation expenses, including the determination of the fair value of the Company’s common stock prior to the Business Combination and the derived service period for the awards containing market-based vesting conditions, and the valuation of deferred tax assets. These estimates are inherently subjective in nature and, therefore, actual results may differ from the Company’s estimates and assumptions. The Company bases its estimates on historical experience and also on assumptions that it believes are reasonable. Further, the Company applies judgment in determining whether, directly or indirectly, it has a controlling financial interest in the Investment Funds, in order to conclude whether any of the Investment Funds must be consolidated. The Company believes the estimates and assumptions underlying the consolidated financial statements are reasonable and supportable based on the information available as of December 31, 2023. These estimates may change as new events occur and additional information is obtained, and related financial impacts will be recognized in the Company’s consolidated financial statements as soon as those events become known.
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Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurements. Three levels of inputs may be used to measure fair value: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, requiring certain assumptions and significant management judgment or estimation about the inputs a hypothetical market participant would use to value that asset or liability. Liabilities Classified as Level 3 The Company classifies certain warrant liabilities within Level 3 of the fair value hierarchy and measures the liabilities at fair value using a binomial lattice model in a risk-neutral framework. Variables in the model include expected volatility, the risk-free rate of return, dividend yield, the fair value of the underlying security and the expected life of the instrument. The Company classifies certain payment-dependent notes receivable and payment-dependent notes payable within Level 3 of the fair value hierarchy and estimates fair values of payment-dependent notes receivable and payment-dependent notes payable utilizing completed transactions made through the Company’s platform for the relevant private securities as well as mutual fund valuations of private companies as relevant data inputs.
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Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less from the date of purchase to be cash equivalents. Cash and cash equivalents consist primarily of bank deposit accounts and investments in certain money market mutual funds. Restricted Cash The Company classifies all cash and cash equivalents that are not available for immediate or general business use as restricted in the accompanying consolidated balance sheets. This includes amounts set aside for restrictions of specific agreements. As of December 31, 2022, restricted cash is comprised of cash held for regulatory purposes for the trust and brokerage-related activities. As of December 31, 2023, restricted cash is comprised of cash held for regulatory purposes for the trust-related activities.
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Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable consist of amounts billed and currently due from customers, which are subject to collection risk. Under Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Measurement of Credit Losses on Financial Instruments we estimate our allowance for credit losses using an aging method, disaggregated based on major revenue stream categories as well as other unique revenue stream factors. The allowance for credit losses is maintained at a level that we believe to be sufficient to absorb probable losses over the expected life in our accounts receivable portfolio. The allowance is based on several factors, including continuous assessments of risk characteristics, specific customer events that may impact its ability to meet its financial obligations, and other reasonable and supportable economic characteristics. Accounts receivable are written-off against the allowance for credit losses when collection efforts cease.
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Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk primarily comprise cash and cash equivalents and restricted cash, term deposits, payment-dependent notes receivable, and accounts receivable. Cash and cash equivalents and restricted cash may, at times, exceed amounts insured by the FDIC and the Securities Investor Protection Corporation, respectively. The Company performs periodic evaluations of the relative credit standing of these financial institutions to limit the amount of credit exposure. The Company has not experienced any losses on its deposits of cash and cash equivalents to date. The Company’s exposure to credit risk associated with its contracts with holders of private company equity (“sellers”) and investors (“buyers”) related to the transfer of private securities is measured on an individual counterparty basis. Concentrations of credit risk can be affected by changes in political, industry or economic factors. To reduce the potential for risk concentration, the Company’s exposure is monitored in light of changing counterparty and market conditions.
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Internal-use Software, Net | Internal-use Software and Equipment, Net The Company capitalizes certain costs related to software developed for its internal-use. The costs capitalized include development of new software features and functionality and incremental costs related to significant improvement of existing software. Development costs incurred during the preliminary or maintenance project stages are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized using the straight-line method over the useful life of the software, which is typically three years, unless factors indicate a shorter useful life. Amortization begins only when the software becomes ready for its intended use. Costs incurred after the project is substantially completed and is ready for its intended purpose, such as maintenance and training costs, are expensed as incurred, unless related to significantly increasing the functionality of existing software.
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Property and Equipment, Net | Property and equipment are stated at cost net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Expenditures for maintenance and repairs are expensed as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the consolidated balance sheets, and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized.
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Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company’s long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. The Company also evaluates the period of depreciation and amortization of long-lived assets to determine whether events or circumstances warrant revised estimates of useful lives. When indicators of impairment are present, the Company determines the recoverability of its long-lived assets by comparing the carrying value of its long-lived assets to future undiscounted net cash flows expected to result from the use of the assets and their eventual disposition. If the estimated future undiscounted cash flows demonstrate the long-lived assets are not recoverable, an impairment loss would be calculated based on the excess of the carrying amounts of the long-lived assets over their fair value.
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Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized but is tested for impairment annually on October 1, or more frequently if events or changes in circumstances indicate the goodwill may be impaired. These events or circumstances could include a significant change in the business climate, regulatory environment, established business plans, operating performance indicators, or competition. Potential impairment indicators may also include, but are not limited to, (i) the results of the Company’s most recent annual or interim impairment testing, (ii) downward revisions to internal forecasts, (iii) declines in the Company’s market capitalization below its book value, and the magnitude and duration of those declines, (iv) a reorganization resulting in a change to the Company’s operating segments, and (v) other macroeconomic factors, such as increases in interest rates that may affect the weighted average cost of capital or volatility in the equity and debt markets. No impairment charges were recognized during the years ended December 31, 2023, 2022, and 2021. Acquired intangible assets also consist of identifiable intangible assets, primarily software technology, launched IPR&D asset, website, trade name and customer relationships, resulting from business acquisitions. Finite-lived intangible assets are recorded at fair value on the date of acquisition and are amortized over their estimated useful lives. The Company bases the useful lives and related amortization expense on its estimate of the period that the assets will generate revenues or otherwise be used.
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Leases | Leases The Company categorizes leases at their inception or upon modification, if applicable. As of December 31, 2023 and 2022, the Company only has operating leases. For operating leases, the Company recognizes rent and occupancy on a straight-line basis, commencing on the date at which the property becomes available for the Company's use. For leases with a term greater than 12 months, the Company records the related right-of-use assets and operating lease liabilities at the present value of lease payments over the lease term. The Company does not separate lease and non-lease components of contracts for real estate property leases. Variable lease payments for common area maintenance, property taxes and other operating expenses are not included in the measurement of ROU assets and lease liabilities and are expensed as incurred. The rates implicit on the Company’s leases are not readily determinable. Therefore, the Company estimates its incremental borrowing rate to discount the lease payments based on information available at lease commencement. The Company determines its incremental borrowing rate based on the rate of interest it would have to pay to borrow on a collateralized basis with an equal lease payment amount, over a similar term, and in a similar economic environment. The Company evaluates its subleases in which it is the sublessor to determine whether it is relieved of the primary obligation under the original lease. If it remains the primary obligor, the Company continues to account for the original lease as it did before the commencement of the sublease and records the sublease income based on the contract terms in other income in the consolidated statements of operations.
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Payment-Dependent Notes | Payment-Dependent Notes Payment-dependent notes receivable and payment-dependent notes payable represent financial instruments that are presented at fair value in the consolidated financial statements in accordance with Accounting Standards Codification ("ASC") 825, Fair Value Option for Financial Instruments. The Company enters into separate contracts with equity holders of private companies’ shares (“sellers”) and investors (“buyers”) that enable the transfer of private securities upon a specified event such as an initial public offering, merger, or acquisition involving the underlying company. The Company serves as an intermediary counterparty to both the buyer and the seller and earns transaction fee revenue by facilitating the execution of the transaction. Contracts with buyers require the Company to facilitate the transfer of a fixed number of shares of the private securities from sellers upon occurrence of a specified event. Buyers are required to pay the selling price for shares purchased (“settlement amounts”) and transaction fee defined in the contracts into a distribution or escrow account upon notice by the Company. Contracts with sellers require sellers to transfer the same amount and class of shares referenced in the contract between the Company and the corresponding buyers upon the occurrence of a specified event. When settlement amounts have been determined, and the price and transaction fees are paid by the buyer, payment-dependent notes receivable are recorded for the securities due from the sellers, and payment- dependent notes payable are recorded for the securities owed to the buyers. Amounts recorded at period-end for payment-dependent notes receivable represent the fair value of securities receivable from sellers, for which the securities settlement event has not occurred. Amounts recorded at period-end for payment-dependent notes payable represent the fair value of securities not yet delivered to the buyer. Changes in fair value of payment-dependent notes receivable and payment-dependent notes payable are recorded in other expense in the consolidated statements of operations.
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Warrant Liabilities | Warrant Liabilities The Company recognizes certain warrant instruments as derivative liabilities in accordance with ASC 815, Derivatives and Hedging. See Notes 3 "Recapitalization", 4 "Fair Value Measurements", and 11 "Warrants" for additional information. Accordingly, the Company recognizes the warrant instruments as liabilities at fair value and adjusts the carrying value of the instruments to fair value at each reporting period until they are redeemed, exchanged, expired or exercised. The Company will continue to adjust the warrant liability for changes in the fair value until the earlier of a) the exercise, exchange or expiration of the warrants or b) the redemption of the warrants, at which time the warrants will be reclassified to additional paid-in-capital.
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Revenue Recognition | Revenue Recognition The Company generates revenue from fees charged for the trading of private shares through its platform, and fees for account and asset management provided to customers. The Company disaggregates revenue by service type, as management believes that this level of disaggregation best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are impacted by economic factors. The Company recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for services. To achieve the core principle of this standard, the Company applied the following five steps: 1.Identification of the contract, or contracts, with the customer; 2.Identification of the performance obligations in the contract; 3.Determination of the transaction price; 4.Allocation of the transaction price to the performance obligations in the contract; and 5.Recognition of the revenue when, or as, a performance obligation is satisfied. Revenue from Contracts with Customers The Company enters into contracts with customers that can include various services, which are capable of being distinct and accounted for as separate performance obligations. When applicable, an allocation of the transaction fees to the performance obligations or to the distinct goods or services that form part of a single performance obligation will depend on the individual facts and circumstances of the contract. All of the Company’s revenues are from contracts with customers. The Company is the principal in its contracts, with the exception of cash administration fees, in which the Company acts as an agent and records revenue from fees earned related to cash balances in customers’ custodial accounts. Contract assets represent amounts for which the Company has recognized revenue for contracts that have not yet been invoiced to our customers. The Company does not have any contract assets as of December 31, 2023 and 2022. Contract liabilities consist of deferred revenue, which relates to amounts invoiced in advance of performance under a revenue contract. The total contract liabilities of $0.4 million and $0.4 million as of December 31, 2023, and 2022, respectively, related to advance billings for data subscriptions, recorded in accrued expenses and other current liabilities on the consolidated balance sheets. The Company recognized $0.4 million of revenue during the year ended December 31, 2023 that was included in deferred revenue recorded in accrued expenses and other current liabilities at December 31, 2022. Each of our significant performance obligations and our application of ASC 606 to our revenue arrangements are discussed in further detail below: Marketplace revenue (previously called placement fee revenue) — The Company maintains a platform which generates revenue through its Forge Markets offering with volume-based fees sourced from institutions, individual investors and private equity holders. The Company earns agency marketplace revenue in non-underwritten transactions, such as private placements of equity securities. The Company enters into arrangements with individual accredited customers or Investment Funds to execute private placements in the secondary market. Marketplace revenue is charged by the Company for meeting the point-in-time performance obligation of executing a private placement on its platform. Placement fee rates are individually negotiated for each transaction and vary depending on the specific facts and circumstance of each agreement. These fees are event-driven and invoiced upon the closing of the transaction outlined in each agreement. These fees may be expressed as a dollar amount per share, a flat dollar amount, or a percentage of the gross transaction proceeds. The Company will receive marketplace revenue on these transactions and believes that its trade execution performance obligation is completed upon the placement and consummation of a transaction and, as such, revenue is earned on the transaction date with no further obligation to the customer at that time. The Company acts as a principal in the contract and recognizes marketplace revenue upon execution of a trade. Custodial Administration Fees — The Company generates revenues from account maintenance fees, asset fees, transaction fees, and cash administration fees. The cash administration fees are based on prevailing interest rates and customer cash balances, and currently make up the majority of custodial administration fee revenue. The Company charges administration fees for its services in maintaining custodial accounts, including asset-based fees, which are determined by the number and types of assets in these accounts. Cash administration fees are based on cash balances within the custodial accounts and are assessed on the last day of the month. The Company also earns fees for opening and terminating accounts, and facilitating transactions, which are assessed at the point of transaction. Account and asset fees are assessed on the first day of the calendar quarter. Revenues from custodial administration fees are recognized either over time as underlying performance obligations are met and day-to-day maintenance activities are performed for custodial accounts, or at a point in time upon completion of transactions requested by custodial account holders. Practical Expedients In certain arrangements, the Company receives payment from a customer either before or after the performance obligation has been satisfied; however, the contracts do not contain a significant financing component. The Company has applied the practical expedient in ASC 606 and excludes information about a) remaining performance obligations that have an original expected duration of one year or less and b) transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation.
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Transaction-Based Expenses | Transaction-Based Expenses Transaction-based expenses represent the fees incurred to support placement activities. These include, but are not limited to, third-party broker fees and transfer fees related to placement provided to brokerage customers to facilitate transactions and to a lesser extent those for fund management, and fund settlement expenses that relate to services provided to the Investment Funds.
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Stock Based Compensation | Share-Based Compensation The Company recognizes share-based compensation expense for all share-based awards, primarily stock options, restricted stock awards ("RSAs"), and restricted stock units ("RSUs"), based on the grant date fair value of the awards on a straight-line basis over the requisite service period of the awards, which is generally the award's vesting term. The fair value of stock options is determined using the Black-Scholes option pricing model and the fair value of RSAs and RSUs is based on the closing price of the Company's common stock on the grant date. Forfeitures are accounted for as they occur. For all awards with a market-based conditions and certain awards with performance-based conditions, the Company uses a Monte Carlo simulation to determine the fair value and the derived service period at the grant date and recognizes share-based compensation expense using an accelerated attribution method when it becomes probable that the performance-based condition will be met.
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Advertising and Market Development | Advertising and Market Development Advertising costs are expensed as incurred and include advertising and trade shows.
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Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method whereby deferred tax assets and liabilities are determined based on temporary differences between the basis used for financial reporting and income tax reporting purposes. Deferred income taxes are provided based on the enacted tax rates and laws that will be in effect at the time such temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not that the Company will not realize those tax assets through future operations. The Company utilizes a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more likely than not of being realized and effectively settled. The Company considers many factors when evaluating and estimating the Company’s tax positions and tax benefits, which may require periodic adjustments, and which may not accurately reflect actual outcomes. The Company recognizes interest and penalties on unrecognized tax benefits as a component of provision for income taxes in the consolidated statements of operations.
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Foreign Currency | Foreign Currency The Company's reporting and functional currency is the U.S. dollar ("USD"). For financial reporting purposes, the Company translates assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates on the balance sheet date, except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are translated using the average exchange rate for the period. Cumulative translation gains and losses are included in accumulated other comprehensive loss.
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Comprehensive Loss | Comprehensive Loss Comprehensive income or loss consists of Net income or loss and Other comprehensive income or loss. The Company's Other comprehensive income or loss is comprised of foreign currency translation gains and losses and changes in equity during a period from noncontrolling interests excluding those resulting from contributions and distributions to owners. Accumulated comprehensive loss, as presented in the consolidated financial statements consists of changes in unrealized gains and losses on foreign currency translation.
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Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common Stockholders Prior to the Business Combination, the Company computed net loss per share using the two-class method required for participating securities. The two-class method required income attributable to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. All of the Company's participating securities, in the form of convertible preferred stock, were converted into common stock of the Company upon consummation of the Business Combination. The prior holders of convertible preferred stock had dividend rights in the event of a declaration of a dividend for shares of common stock. However, the participating securities did not contractually require the holders of such securities to participate in the Company’s losses. Accordingly, net loss for the years ended December 31, 2023, 2022, and 2021 was only allocated to the Company’s common stockholders. The Company’s basic net loss per share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share in periods when the effects of potentially dilutive shares are anti-dilutive.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2023, the FASB issued ASU 2023-05 Business Combinations - Joint Venture Formations (“ASU 2023-05”), which addresses the accounting for contributions made to a joint venture. ASU 2023-05 requires joint ventures to measure all assets and liabilities upon formation at fair value. This guidance will be applied prospectively to all joint venture formations with a formation date on or after January 1, 2025. The Company is currently assessing the impact of the requirements on its consolidated financial statements and disclosures. In November 2023, the FASB issued ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”) to expand reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in the ASU require that a public entity disclose, on an annual and interim basis, significant segment expenses that are regularly provided to an entity's chief operating decision maker (“CODM”), a description of other segment items by reportable segment, and any additional measures of a segment's profit or loss used by the CODM when deciding how to allocate resources. ASU 2023-07 applies to entities with a single reportable segment. Annual disclosures are required for fiscal years beginning after December 15, 2023. Interim disclosures are required for periods within fiscal years beginning after December 15, 2024. Retrospective application is required for all prior periods presented with early adoption permitted. The Company is currently assessing the impact of the requirements on its consolidated financial statements and disclosures. In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”) to update income tax disclosure requirements primarily by requiring specific categories and greater disaggregation within the rate reconciliation and disaggregation of income taxes paid by jurisdiction. The amendments in the ASU also remove disclosures related to certain unrecognized tax benefits and deferred taxes. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The amendments may be applied prospectively or retrospectively with early adoption permitted. The Company is currently assessing the impact of the requirements on its consolidated financial statements and disclosures. There have been no other recent accounting pronouncements, changes in accounting pronouncements or recently adopted accounting guidance during the year ended December 31, 2023 that are of significance or potential significance to us.
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Fair Value Measurements (Tables) |
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis (in thousands):
(2) Includes $1.0 million term deposits required to fulfill the Company's obligations in connection with real estate lease agreements. (3) On December 18, 2023, the then outstanding Junior Preferred Stock Warrants were modified and replaced with the December 2023 Warrants. See Note 8, "Commitments and Contingencies" and Note 11, "Warrants" for additional information.
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Fair Value Measurement Inputs and Valuation Techniques | The Company estimated the fair value of the Junior Preferred Stock Warrants (1) as of December 31, 2022, using the following key assumptions: The significant assumptions used in the analysis were as follows for the years as of December 31, 2023 and 2022 respectively:
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Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following tables provide reconciliation for all financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2023 and 2022 (in thousands):
(1) On December 18, 2023, the then outstanding Junior Preferred Stock Warrants were modified and replaced with the December 2023 Warrants. See Note 8, "Commitments and Contingencies" and Note 11 "Warrants," for additional information. (2) Transfers into/out of the Level 3 classification are reflected at beginning-of-reporting period fair values in which the instrument transferred into or out of Level 3. The December 2023 Warrants transferred out of Level 3 classification on December 18, 2023. The Private Placement Warrants transferred into Level 3 classification on July 11, 2022.
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The Company recorded changes in the fair value of the December 2023 Warrants and Junior Preferred Stock Warrant liability as follows (in thousands):
(1) The change in fair value of warrant liability is recorded in the consolidated statement of operations within Change in fair value of warrant liabilities. (2) The change in fair value of contingent liability in connection with the modification of the Junior Preferred Stock Warrants to the December 2023 Warrants is recorded in the consolidated statement of operations within General and administrative expense. The Company recorded changes in the fair value of the liability related to the Private Placement Warrant as of December 31, 2023, and 2022, respectively in the following amounts (in thousands):
(1) The change in fair value of warrant liability is recorded in the consolidated statement of operations within Change in fair value of warrant liabilities. The following tables provide reconciliation for all financial assets and liabilities measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2023 and 2022 (in thousands):
(1) On December 18, 2023, the then outstanding Junior Preferred Stock Warrants were modified and replaced with the December 2023 Warrants. See Note 8, "Commitments and Contingencies" and Note 11 "Warrants," for additional information. (2) Transfers into/out of the Level 3 classification are reflected at beginning-of-reporting period fair values in which the instrument transferred into or out of Level 3. The December 2023 Warrants transferred out of Level 3 classification on December 18, 2023. The Private Placement Warrants transferred into Level 3 classification on July 11, 2022.
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Consolidated Other Balance Sheet Components (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulated Operations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands):
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Property and Equipment, Net | Internal-use software and property and equipment, net consisted of the following (in thousands):
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Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands):
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Goodwill and Intangible Assets, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Indefinite-Lived Intangible Assets | The components of goodwill, intangible assets and accumulated amortization are as follows (in thousands):
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Schedule of Finite-Lived Intangible Assets | The components of goodwill, intangible assets and accumulated amortization are as follows (in thousands):
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Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The table below presents estimated future amortization expense for finite-lived intangible assets as of December 31, 2023 (in thousands):
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease Expense | Operating lease expense, included in rent and occupancy in the consolidated statements of operations, were as follows (in thousands):
(1) Operating lease expense is included in rent and occupancy in the consolidated statements of operations. (2) Sublease income is included in other income (expenses), net in the consolidated statements of operations.
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Operating Leases | The table below presents additional information related to the Company’s operating leases (in thousands):
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Future Undiscounted Lease Payments | Future undiscounted lease payments under operating leases as of December 31, 2023 were as follows (in thousands):
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Cancelable Purchase Obligations | As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer, excluding operating lease obligations (see Note 7, "Leases," for additional information) as follows (in thousands):
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Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock Reserved for Future Issuance | The Company has the following shares of common stock reserved for future issuance, on an as-if converted basis:
(1) Effective June 15, 2023, the Company cancelled the CEO Option (as defined below), which was granted under the 2018 Plan. As a result of such cancellation, the 3,122,931 shares of common stock underlying the CEO Option became available for future awards under the 2022 Plan. (2) To the extent outstanding options granted under the 2018 Plan are cancelled, forfeited, or otherwise terminated without being exercised and would have been returned to the share reserve under the 2018 Plan following the closing date of the Merger, the number of shares of common stock underlying such awards will be available for future awards under the 2022 Plan.
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Schedule of Share-Based Compensation Expense | The share-based compensation expense for the periods indicated below are as follows (in thousands):
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Schedule of Stock Option Activity | Stock option activity during the year ended December 31, 2023, consisted of the following (in thousands, except for share and per share data):
(1) Effective June 15, 2023, the Company cancelled the CEO Option (as defined below), which was granted under the 2018 Plan. As a result of such cancellation, the 3,122,931 shares of common stock underlying the CEO Option became available for future awards under the 2022 Plan.
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Schedule of RSU Activity | RSU activity during the year ended December 31, 2023 was as follows:
(1) In connection with the cancellation of the CEO Option, the Company granted 2,339,030 market-based RSUs. See Performance and Market Condition Options above for additional information. (2) Common stock has not been issued in connection with 69,987 vested RSUs because such RSUs were unsettled as of December 31, 2023.
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loss Before Income Taxes | The components of the loss before income taxes were as follows (in thousands):
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Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | Reconciliation of the statutory federal income tax to the Company's effective tax is as follows (amounts in thousands):
(1) Immaterial correction of error of $8.3 million to the change in fair value of warrant liabilities and related $1.8 million to state income taxes for the year ended December 31, 2022. This correction had no impact on the consolidated balance sheet as of December 31, 2022 and the consolidated statements of operations, stockholders' equity and cash flows for the year ended December 31, 2022.
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Schedule of Net Deferred Tax Liabilities | Significant components for the Company's net deferred tax liabilities included in accrued expenses and other current liabilities in the consolidated balance sheets are as follows (in thousands):
(1) The components of the Company's deferred tax assets and valuation allowance as of December 31, 2022 have been adjusted to reflect immaterial corrections identified during the year ended December, 31 2023. This correction had no impact on the consolidated balance sheet as of December 31, 2022 and the consolidated statements of operations, stockholders' equity and cash flows for the year ended December 31, 2022.
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Schedule of Unrecognized Tax Benefits Roll Forward | Changes in our unrecognized tax benefits are summarized as follows (in thousands):
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Net Loss Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders for the periods presented (in thousands, except for share and per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive shares were excluded in the calculation of diluted shares outstanding as the effect would have been anti-dilutive:
(1) Conversion of preferred stock to common stock as part of the Merger. See Note 10, "Capitalization", and Note 11, "Warrants", for additional details of the Company’s stockholders’ equity prior to and subsequent to the Merger.
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Organization and Description of Business (Details) $ in Millions |
13 Months Ended | |
---|---|---|
Sep. 30, 2022
USD ($)
|
Mar. 21, 2022 |
|
Variable Interest Entity [Line Items] | ||
Exchange ratio | 3.122931 | |
Forge Europe | ||
Variable Interest Entity [Line Items] | ||
Cash consideration | $ 4.6 | |
Forge Europe | Forge Global Holdings, Inc. and Deutsche Börse Aktiengesellschaft | ||
Variable Interest Entity [Line Items] | ||
Cash consideration | 14.1 | |
Forge Europe | Deutsche Börse Aktiengesellschaft | ||
Variable Interest Entity [Line Items] | ||
Cash consideration | $ 9.5 |
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Accounting Policies [Line Items] | |||
Allowance for credit losses | $ 1,100,000 | $ 900,000 | |
Goodwill impairment | 0 | 0 | $ 0 |
Contract liabilities | 400,000 | 400,000 | |
Revenue recognized | 400,000 | ||
Total revenues | 69,821,000 | 69,383,000 | 128,056,000 |
Advertising costs | 2,300,000 | 3,300,000 | 2,900,000 |
Non-US | |||
Accounting Policies [Line Items] | |||
Total revenues | $ 4,700,000 | $ 6,900,000 | $ 20,000,000 |
Software | |||
Accounting Policies [Line Items] | |||
Useful life | 3 years |
Recapitalization (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Mar. 21, 2022
USD ($)
shares
$ / shares
|
Dec. 31, 2023
USD ($)
$ / shares
|
Dec. 31, 2022
USD ($)
$ / shares
|
Dec. 31, 2021
USD ($)
|
|
Recapitalization [Line Items] | ||||
Shares acquired percentage | 100.00% | |||
Proceeds from reverse recapitalization | $ 216,400 | |||
Proceeds from the Merger | 7,900 | $ 0 | $ 7,865 | $ 0 |
Purchase price | 0 | 208,500 | 0 | |
Payments of reverse recapitalization transaction costs | 61,800 | |||
Adjustments to stock issuance costs | 58,700 | 58,673 | ||
Payments of warrant issuance costs | 3,100 | |||
One time transaction bonus | 17,700 | |||
Portion paid in cash | 12,200 | |||
Settlement of related party promissory notes | $ 5,500 | $ 0 | $ 5,517 | $ 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Class A | Motive Capital Corp | ||||
Recapitalization [Line Items] | ||||
Conversion ratio (in shares) | shares | 1 | |||
Class B | Motive Capital Corp | ||||
Recapitalization [Line Items] | ||||
Conversion ratio (in shares) | shares | 1 | |||
PIPE Investment | ||||
Recapitalization [Line Items] | ||||
Purchase price | $ 68,500 | |||
PIPE Investment | Private Placement | ||||
Recapitalization [Line Items] | ||||
Shares issued (in shares) | shares | 6,850,000 | |||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 10.00 | |||
Motive Fund Vehicles Investor | ||||
Recapitalization [Line Items] | ||||
Purchase price | $ 140,000 | |||
Sale of units (in shares) | shares | 1 | |||
Motive Fund Vehicles Investor | Public Warrant | ||||
Recapitalization [Line Items] | ||||
Sale of unit, number of warrants in each unit | shares | 0.0033 | |||
Motive Fund Vehicles Investor | Private Placement | ||||
Recapitalization [Line Items] | ||||
Number of units issued in transaction (in units) | shares | 14,000,000 | |||
Sale of units, price per unit (in dollars per unit) | $ / shares | $ 10.00 |
Fair Value Measurements - Hierarchy for Assets and Liabilities on a Recurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment-dependent notes receivable, noncurrent | $ 5,593 | $ 7,371 |
Payment-dependent notes payable, noncurrent | 5,593 | 7,371 |
Warrant liabilities | 9,616 | 606 |
Fair Value, Recurring | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment-dependent notes receivable, noncurrent | 5,593 | 7,371 |
Term deposits | 7,694 | |
Total financial assets | 145,640 | 156,510 |
Payment-dependent notes payable, noncurrent | 5,593 | 7,371 |
Total financial liabilities | 15,209 | 7,977 |
Term deposit, real estate lease agreement obligation | 1,000 | |
Fair Value, Recurring | December 2023 Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 4,889 | |
Fair Value, Recurring | Junior Preferred Stock Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 384 | |
Fair Value, Recurring | Private placement warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 4,727 | 222 |
Fair Value, Recurring | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 130,132 | 149,139 |
Fair Value, Recurring | Term deposits (less than 90 days) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 2,221 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment-dependent notes receivable, noncurrent | 0 | 0 |
Term deposits | 0 | |
Total financial assets | 130,132 | 149,139 |
Payment-dependent notes payable, noncurrent | 0 | 0 |
Total financial liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | December 2023 Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 0 | |
Fair Value, Recurring | Level 1 | Junior Preferred Stock Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 0 | |
Fair Value, Recurring | Level 1 | Private placement warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 0 | 0 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 130,132 | 149,139 |
Fair Value, Recurring | Level 1 | Term deposits (less than 90 days) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 0 | |
Fair Value, Recurring | Level 2 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment-dependent notes receivable, noncurrent | 0 | 0 |
Term deposits | 7,694 | |
Total financial assets | 9,915 | 0 |
Payment-dependent notes payable, noncurrent | 0 | 0 |
Total financial liabilities | 4,889 | 0 |
Fair Value, Recurring | Level 2 | December 2023 Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 4,889 | |
Fair Value, Recurring | Level 2 | Junior Preferred Stock Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 0 | |
Fair Value, Recurring | Level 2 | Private placement warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 0 | 0 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Fair Value, Recurring | Level 2 | Term deposits (less than 90 days) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 2,221 | |
Fair Value, Recurring | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Payment-dependent notes receivable, noncurrent | 5,593 | 7,371 |
Term deposits | 0 | |
Total financial assets | 5,593 | 7,371 |
Payment-dependent notes payable, noncurrent | 5,593 | 7,371 |
Total financial liabilities | 10,320 | 7,977 |
Fair Value, Recurring | Level 3 | December 2023 Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 0 | |
Fair Value, Recurring | Level 3 | Junior Preferred Stock Warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 384 | |
Fair Value, Recurring | Level 3 | Private placement warrants | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Warrant liabilities | 4,727 | 222 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | 0 | $ 0 |
Fair Value, Recurring | Level 3 | Term deposits (less than 90 days) | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash and cash equivalents | $ 0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Mar. 21, 2022 |
|
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value of warrant liabilities | $ 6,465 | $ (19,836) | $ 6,064 | ||
Series B-1 Convertible Preferred Stock | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value of warrant liabilities | 100 | $ 2,600 | |||
Series B-1 Convertible Preferred Stock | Warrant | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value | (106) | ||||
December 2023 Warrants | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Exercise price of warrants (in dollars per share) | $ 3.9760 | $ 3.9760 | |||
Exercise price of warrants or rights extended value cap | $ 5,000 | ||||
December 2023 Warrants | Warrant | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value | $ (721) | ||||
December 2023 Warrants | Warrant | Fair Value Adjustment Of Warrants | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value | (2,000) | ||||
December 2023 Warrants | Warrant | General and Administrative Expense | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value | (2,500) | ||||
Private placement warrants | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | ||||
Private placement warrants | Warrant | |||||
Fair Value, Option, Quantitative Disclosures [Line Items] | |||||
Change in fair value | $ (4,505) | $ 20,239 |
Fair Value Measurements - Valuation of Warrants (Details) - Binomial Lattice Model |
Dec. 31, 2023
$ / shares
yr
|
Dec. 31, 2022
yr
$ / shares
|
---|---|---|
Junior Preferred Stock Warrants | Fair value of underlying securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 1.73 | |
Junior Preferred Stock Warrants | Expected term (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | yr | 2.9 | |
Junior Preferred Stock Warrants | Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.461 | |
Junior Preferred Stock Warrants | Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.042 | |
Junior Preferred Stock Warrants | Expected dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0 | |
Junior Preferred Stock Warrants | Fair value per warrant | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.15 | |
Private placement warrants | Fair value of underlying securities | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 3.43 | 1.73 |
Private placement warrants | Expected term (years) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | yr | 3.2 | 5.0 |
Private placement warrants | Expected volatility | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 1.170 | 0.446 |
Private placement warrants | Risk-free interest rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.040 | 0.041 |
Private placement warrants | Expected dividend yield | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0 | 0 |
Private placement warrants | Fair value per warrant | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warrants measurement input | 0.64 | 0.03 |
Fair Value Measurements - Fair Value of Warrants (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | $ 7,977 | $ 21,297 | |
Ending balance | 10,320 | 7,977 | $ 21,297 |
Warrant | December 2023 Warrants And Junior Preferred Stock Warrants | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | 384 | 5,000 | 1,528 |
Issuance of common stock on warrant exercise | 0 | (787) | 0 |
Ending balance | 4,889 | 384 | 5,000 |
Warrant | December 2023 Warrants And Junior Preferred Stock Warrants | Fair Value Adjustment Of Warrants | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Change in fair value | 1,960 | (3,829) | 3,472 |
Warrant | December 2023 Warrants And Junior Preferred Stock Warrants | General and Administrative Expense | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Change in fair value | 2,545 | 0 | 0 |
Warrant | Private placement warrants | |||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |||
Beginning balance | 222 | 0 | |
Assumption of Warrants | 0 | 4,875 | |
Change in fair value | 4,505 | (20,239) | |
Change in fair value of warrant liability | 4,505 | (4,653) | |
Issuance of common stock on warrant exercise | 0 | 0 | |
Ending balance | $ 4,727 | $ 222 | $ 0 |
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Total Level 3 Financial Assets | ||
Beginning balance | $ 7,371 | $ 13,453 |
Ending balance | 5,593 | 7,371 |
Total Level 3 Financial Liabilities | ||
Beginning balance | 7,977 | 21,297 |
Ending balance | 10,320 | 7,977 |
Notes Payable, Other Payables | ||
Total Level 3 Financial Liabilities | ||
Change in fair value | (1,778) | (6,082) |
Warrant | Private placement warrants | ||
Total Level 3 Financial Liabilities | ||
Beginning balance | 222 | 0 |
Transfers out of Level 2 to Level 3 | 20,461 | |
Change in fair value | 4,505 | (20,239) |
Exercise of Junior Preferred Stock Warrants | 0 | 0 |
Ending balance | 4,727 | 222 |
Warrant | December 2023 Warrants | ||
Total Level 3 Financial Liabilities | ||
Change in fair value | 721 | |
Transfers out of Level 3 to Level 2 | (1,105) | |
Warrant | Series B-1 Convertible Preferred Stock | ||
Total Level 3 Financial Liabilities | ||
Change in fair value | 106 | |
Settlements | (2,950) | |
Warrant | Junior Preferred Stock Warrants | ||
Total Level 3 Financial Liabilities | ||
Change in fair value | (3,963) | |
Exercise of Junior Preferred Stock Warrants | (653) | |
Notes Receivable | ||
Total Level 3 Financial Assets | ||
Change in fair value | $ (1,778) | $ (6,082) |
Consolidated Other Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Regulated Operations [Abstract] | ||
Term deposits | $ 7,694 | $ 0 |
Prepaid insurance | 1,084 | 3,250 |
Prepaid software | 1,484 | 1,406 |
Other prepaid expenses | 801 | 1,546 |
Other current assets | 2,190 | 2,177 |
Prepaid expenses and other current assets | $ 13,253 | $ 8,379 |
Consolidated Other Balance Sheet Components - Internal-Use Software, Property and Equipment, Net (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 10,476 | $ 10,484 | |
Less: accumulated depreciation and amortization | (5,284) | (2,485) | |
Total | 5,192 | 7,999 | |
Depreciation expense | 200 | 200 | $ 400 |
Loss on impairment of long lived assets | 599 | 446 | 0 |
Amortization expense on capitalized internal-use software | 2,800 | 1,800 | 200 |
Impairment loss on developed software | 600 | 0 | 0 |
Capitalized internal-use software | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 9,000 | 9,605 | |
Computer equipment | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 125 | 66 | |
Furniture and fixtures | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 485 | 426 | |
Leasehold improvements | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 866 | 387 | |
Leasehold Improvements and Furniture and Fixtures | |||
Public Utility, Property, Plant and Equipment [Line Items] | |||
Loss on impairment of long lived assets | $ 0 | $ 200 | $ 0 |
Consolidated Other Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Regulated Operations [Abstract] | ||
Accrued professional services | $ 3,166 | $ 1,299 |
Accrued taxes and deferred tax liabilities | 1,479 | 1,006 |
Common stock unvested liability | 223 | 589 |
Other current liabilities | 3,993 | 3,527 |
Total | $ 8,861 | $ 6,421 |
Goodwill and Intangible Assets, Net - Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Goodwill, Gross | $ 120,948 | $ 120,948 |
Goodwill | 120,948 | 120,948 |
Gross Carrying Amount | 21,667 | 21,987 |
Accumulated Amortization | (14,920) | (11,272) |
Net Carrying Amount | 6,747 | 10,715 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 2,224 | 2,224 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Gross Carrying Amount | 144,839 | 145,159 |
Accumulated Amortization | (14,920) | (11,272) |
Net Carrying Amount | 129,919 | 133,887 |
Trade name - website domain | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 2,224 | $ 2,224 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 9 months 18 days | 1 year 9 months 18 days |
Gross Carrying Amount | $ 13,200 | $ 13,200 |
Accumulated Amortization | (10,820) | (8,035) |
Net Carrying Amount | 2,380 | 5,165 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | $ (10,820) | $ (8,035) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 5 years 4 months 24 days | 6 years 1 month 6 days |
Gross Carrying Amount | $ 7,507 | $ 7,507 |
Accumulated Amortization | (3,669) | (2,677) |
Net Carrying Amount | 3,838 | 4,830 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | $ (3,669) | $ (2,677) |
Launched IPR&D assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 2 years 8 months 12 days | 3 years 8 months 12 days |
Gross Carrying Amount | $ 960 | $ 960 |
Accumulated Amortization | (431) | (240) |
Net Carrying Amount | 529 | 720 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | $ (431) | $ (240) |
Trade name - website domain | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Remaining Amortization Period | 0 years | |
Gross Carrying Amount | $ 320 | |
Accumulated Amortization | (320) | |
Net Carrying Amount | 0 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Accumulated Amortization | $ (320) |
Goodwill and Intangible Assets, Net - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 4.0 | $ 4.0 | $ 4.8 |
Goodwill and Intangible Assets, Net - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 3,462 | |
2025 | 802 | |
2026 | 754 | |
2027 | 610 | |
2028 | 610 | |
Thereafter | 509 | |
Net Carrying Amount | $ 6,747 | $ 10,715 |
Leases - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2023 |
|
Operating Leased Assets [Line Items] | ||
Renewal term (in years) | 3 years | |
Lease not yet commenced, undiscounted future payments | $ 5.5 | |
Loss on impairment of long lived assets | $ 0.3 | |
Minimum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term (in years) | 9 months | |
Maximum | ||
Operating Leased Assets [Line Items] | ||
Remaining lease term (in years) | 2 years |
Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Leases [Abstract] | |||
Operating lease expense | $ 3,651 | $ 4,182 | $ 3,023 |
Variable lease expense | 924 | 598 | 489 |
Total operating lease expenses | 4,575 | 4,780 | 3,512 |
Sublease income | $ 784 | $ 689 | $ 175 |
Leases - Operating Leases (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 4,308 | $ 5,706 |
Operating lease liabilities, current | 2,516 | 3,896 |
Operating lease liabilities, noncurrent | $ 2,707 | $ 3,541 |
Weighted-average remaining lease term (in years) | 1 year 10 months 24 days | 2 years 7 months 6 days |
Weighted-average discount rate | 7.00% | 6.00% |
Leases - Maturity Schedule (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Lease Payment Obligation | ||
2024 | $ 2,810 | |
2025 | 2,811 | |
Total undiscounted lease payments | 5,621 | |
Less: imputed interest | (398) | |
Present value of future lease payments | 5,223 | |
Less: operating lease liabilities, current | 2,516 | $ 3,896 |
Operating lease liabilities, noncurrent | 2,707 | $ 3,541 |
Sublease Income | ||
2024 | (360) | |
2025 | (210) | |
Total undiscounted lease payments | (570) | |
Net Lease Obligation | ||
2024 | 2,450 | |
2025 | 2,601 | |
Total undiscounted lease payments | $ 5,051 |
Commitments and Contingencies - Legal Proceeding (Details) - USD ($) $ in Millions |
1 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Loss Contingencies [Line Items] | ||
Accrual for loss contingencies | $ 1.9 | $ 0.5 |
Settlement payment | 0.3 | |
Minimum | ||
Loss Contingencies [Line Items] | ||
Loss contingencies reasonably possible | 0.1 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Loss contingencies reasonably possible | $ 10.5 |
Commitments and Contingencies - 401K (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Commitments and Contingencies Disclosure [Abstract] | |||
Employer matching contribution, percent of match | 2.00% | ||
Employer matching contribution amount | $ 6,600 | ||
Contributions | $ 900,000 | $ 1,000,000.0 | $ 500,000 |
Commitments and Contingencies - Non-Cancelable Purchase Obligations (Details) $ in Thousands |
Dec. 31, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease obligations | $ 5,621 |
2024 | 1,969 |
2025 | 1,972 |
2026 | 2,222 |
2027 | 1,231 |
Thereafter | 0 |
Total | $ 7,394 |
Regulatory (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|---|
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Net capital | $ 14,000 | $ 12,400 | |
Net capital in excess of required net capital | 13,600 | 12,200 | |
Required net capital | 400 | 300 | |
Restricted cash | 1,062 | 1,829 | $ 1,623 |
Asset Pledged as Collateral | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Restricted cash | $ 1,100 | $ 1,000 |
Capitalization - Narrative (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Mar. 21, 2022
USD ($)
vote
$ / shares
shares
|
Dec. 31, 2023
USD ($)
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2021
USD ($)
|
Mar. 20, 2022
shares
|
|
Class of Stock [Line Items] | |||||
Shares authorized | 2,100,000,000 | 257,968,554 | |||
Common stock, shares authorized (in shares) | 2,000,000,000 | 2,000,000,000 | 171,153,360 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |||
Common stock, shares issued (in shares) | 176,899,814 | 172,560,916 | |||
Common stock, shares outstanding (in shares) | 176,899,814 | 172,560,916 | |||
Preferred stock, shares issued (in shares) | 0 | ||||
Preferred stock, shares outstanding (in shares) | 0 | ||||
Settlement of related party promissory notes | $ | $ 5,500 | $ 0 | $ 5,517 | $ 0 | |
Unvested shares amount | $ | $ 1,300 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Number of votes per share | vote | 1 | ||||
Class AA Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 |
Warrants - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jul. 11, 2022 |
Dec. 31, 2023 |
Nov. 30, 2020 |
Oct. 31, 2020 |
May 31, 2020 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Mar. 21, 2022 |
|
Class of Warrant or Right [Line Items] | |||||||||
Warrant liabilities | $ 9,616 | $ 9,616 | $ 606 | ||||||
Change in fair value of warrant liabilities | $ 6,465 | (19,836) | $ 6,064 | ||||||
Issuance of common stock upon exercise of Junior Preferred Stock Warrants | 653 | ||||||||
Issuance of common stock upon exercise of Public Warrants (in shares) | 1,994,790 | ||||||||
Proceeds from exercise of Public Warrants | $ 0 | 22,940 | 0 | ||||||
Payments for redemption of Public Warrants | 0 | $ 165 | $ 0 | ||||||
Additional Paid-In Capital | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrant liabilities | $ 700 | $ 700 | |||||||
Common Stock | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Issuance of common stock upon exercise of Junior Preferred Stock Warrants (in shares) | 123,379 | ||||||||
Issuance of common stock upon exercise of Public Warrants (in shares) | 1,994,790 | ||||||||
Additional Paid-In Capital | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Issuance of common stock upon exercise of Junior Preferred Stock Warrants | $ 653 | ||||||||
Series B-1 Convertible Preferred Stock | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Share price (in dollars per share) | $ 3.9760 | $ 3.9760 | $ 3.9760 | ||||||
2020 Convertible Notes Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Percentage of coverage to purchase warrants | 5.00% | ||||||||
Warrant term | 5 years | ||||||||
Series B-1 Convertible Preferred Stock | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value of warrant liabilities | 100 | $ 2,600 | |||||||
Series B-1 Convertible Preferred Stock | Warrant | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value | $ (106) | ||||||||
October 2020 Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrant liabilities | $ 3,500 | ||||||||
Warrant contractual term | 10 years | ||||||||
Junior Preferred Stock Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrant contractual term | 5 years | ||||||||
Class of warrant outstanding (in shares) | 2,631,146 | 3,122,931 | 2,631,146 | ||||||
Exercise price of warrants (in dollars per share) | $ 3.9760 | ||||||||
Exercise price of warrants or rights extended value cap | $ 5,000 | ||||||||
Fixed monetary amount | $ 5,000 | ||||||||
Number of securities called by warrants (in shares) | 491,785 | ||||||||
Junior Preferred Stock Warrants | Warrant | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value | $ 3,963 | ||||||||
December 2023 Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Exercise price of warrants (in dollars per share) | $ 3.9760 | $ 3.9760 | |||||||
Exercise price of warrants or rights extended value cap | $ 5,000 | ||||||||
December 2023 Warrants | Warrant | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value | $ (721) | ||||||||
December 2023 Warrants | Warrant | General and Administrative Expense | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value | (2,500) | ||||||||
December 2023 Warrants And Junior Preferred Stock Warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value of warrant liabilities | (2,000) | 4,000 | (3,500) | ||||||
December 2023 Warrants And Junior Preferred Stock Warrants | Warrant | General and Administrative Expense | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value | $ (2,545) | $ 0 | $ 0 | ||||||
Private placement warrants | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrant term | 5 years | ||||||||
Class of warrant outstanding (in shares) | 7,386,667 | 7,386,667 | 7,386,667 | 7,386,667 | |||||
Exercise price of warrants (in dollars per share) | $ 11.50 | ||||||||
Private placement warrants | Warrant | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Change in fair value | $ (4,505) | $ 20,239 | |||||||
Public Warrant | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Warrant term | 5 years | ||||||||
Class of warrant outstanding (in shares) | 16,471,814 | 4,666,664 | |||||||
Exercise price of warrants (in dollars per share) | $ 11.50 | ||||||||
Redemption price per warrant (in dollars per share) | $ 0.01 | ||||||||
Proceeds from exercise of Public Warrants | $ 22,900 | ||||||||
Payments for redemption of Public Warrants | $ 200 | ||||||||
Public Warrant | Motive Fund Vehicles Investor | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Class of warrant outstanding (in shares) | 13,799,940 |
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 15, 2023
$ / shares
shares
|
Apr. 24, 2023
$ / shares
shares
|
Jun. 01, 2022
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
Jun. 30, 2022 |
Jul. 31, 2021
$ / shares
shares
|
May 31, 2021
USD ($)
$ / shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
Dec. 31, 2023
USD ($)
$ / shares
shares
|
Dec. 31, 2022
USD ($)
employee
$ / shares
shares
|
Dec. 31, 2021
USD ($)
$ / shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of common stock reserved (in shares) | shares | 41,789,670 | 41,789,670 | 43,767,101 | 41,789,670 | |||||||
Share-based compensation, unvested stock options | $ 4,300 | ||||||||||
Period for recognition | 1 year 4 months 24 days | ||||||||||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 2.90 | ||||||||
Grant date fair value of stock options vested in period | $ 4,900 | $ 13,000 | $ 4,000 | ||||||||
Intrinsic value of stock options exercised in period | 2,400 | 5,100 | 14,200 | ||||||||
Cash proceeds received | $ 600 | $ 600 | 200 | 600 | |||||||
Share-based compensation expense | $ 34,334 | $ 57,925 | 12,231 | ||||||||
Measurement period, number of consecutive trading days | 20 days | ||||||||||
Trading day period | 30 days | ||||||||||
Lock-up period | 6 months | ||||||||||
Number of terminated employees | employee | 5 | ||||||||||
Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Trading day period | 20 days | ||||||||||
Stock price meets or exceeds $12.50 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock price trigger (in dollars per share) | $ / shares | $ 12.50 | ||||||||||
Vesting tranches acceleration period | 6 months | ||||||||||
Stock price meets or exceeds $15.00 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Stock price trigger (in dollars per share) | $ / shares | $ 15.00 | ||||||||||
Vesting tranches acceleration period | 6 months | ||||||||||
2018 Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of common stock reserved (in shares) | shares | 0 | ||||||||||
2022 Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of common stock reserved (in shares) | shares | 18,076,331 | ||||||||||
Automatic increase period | 10 years | ||||||||||
Common Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 0 | $ 0 | 4,311 | ||||||||
Common Stock | 2022 Stock Plan | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Percentage of outstanding stock | 3.00% | ||||||||||
Employee Stock | 2022 ESPP | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of common stock reserved (in shares) | shares | 5,797,609 | ||||||||||
Number of shares issued under plan (in shares) | shares | 4,072,000 | ||||||||||
Percentage of outstanding stock | 1.00% | ||||||||||
Stock options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 4 years | ||||||||||
Expiration period | 10 years | ||||||||||
Share-based compensation expense | $ 4,761 | 16,820 | 7,030 | ||||||||
Accelerated vesting of stock options (in shares) | shares | 251,364 | ||||||||||
Stock options | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting options, expiration period after terminated employment | 3 months | ||||||||||
Stock options | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting options, expiration period after terminated employment | 5 years | ||||||||||
Performance and Market Condition-Based Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares granted in period, (in dollars per share) | $ / shares | $ 3.9760 | ||||||||||
Total proceeds threshold | $ 250,000 | ||||||||||
Share-based compensation expense | $ 4,600 | ||||||||||
Performance and Market Condition-Based Option | Share-based Payment Arrangement, Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate exit proceeds fair market value (in dollars per share) | $ / shares | $ 9.94 | ||||||||||
Interest thresholds percentage | 20.00% | ||||||||||
Performance and Market Condition-Based Option | Share-based Payment Arrangement, Tranche Two | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate exit proceeds fair market value (in dollars per share) | $ / shares | $ 14.91 | ||||||||||
Interest thresholds percentage | 30.00% | ||||||||||
Performance and Market Condition-Based Option | Share-based Payment Arrangement, Tranche Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate exit proceeds fair market value (in dollars per share) | $ / shares | $ 19.88 | ||||||||||
Interest thresholds percentage | 35.00% | ||||||||||
RSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares of common stock reserved (in shares) | shares | 69,987 | ||||||||||
Share-based compensation, unvested stock options | $ 40,700 | ||||||||||
Period for recognition | 1 year 10 months 24 days | ||||||||||
Grant date fair value of stock options vested in period | $ 35,400 | 8,400 | |||||||||
Share-based compensation expense | $ 29,573 | $ 40,113 | 0 | ||||||||
Granted (in shares) | shares | 12,199,830 | 11,521,853 | |||||||||
Vested (in shares) | shares | 3,552,392 | 445,503 | |||||||||
Granted (in dollars per share) | $ / shares | $ 1.64 | $ 10.82 | |||||||||
RSUs | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ 700 | $ 6,300 | $ 0 | ||||||||
Shares granted in period (in shares) | shares | 2,339,030 | ||||||||||
Incremental share-based compensation resulting from modification | $ 300 | ||||||||||
RSUs | Share-based Payment Arrangement, Tranche One | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate exit proceeds fair market value (in dollars per share) | $ / shares | $ 4.00 | ||||||||||
RSUs | Share-based Payment Arrangement, Tranche Two | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate exit proceeds fair market value (in dollars per share) | $ / shares | 8.00 | ||||||||||
RSUs | Share-based Payment Arrangement, Tranche Three | Chief Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Aggregate exit proceeds fair market value (in dollars per share) | $ / shares | $ 12.00 | ||||||||||
RSUs | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 1 year | ||||||||||
RSUs | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Vesting period | 4 years | ||||||||||
Directors Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Shares granted in period, (in dollars per share) | $ / shares | $ 5,430,000 | ||||||||||
Share-based compensation expense | 1,200 | ||||||||||
Shares granted in period (in shares) | shares | 499,669,000,000 | ||||||||||
Executive Retention RSUs | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Period for recognition | 2 months 12 days | ||||||||||
Share-based compensation expense | $ 5,300 | $ 24,300 | |||||||||
Granted (in shares) | shares | 1,859,137,000 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 20.26 | ||||||||||
Cost of equity | 9.00% | ||||||||||
Dividend yield | 0.00% | ||||||||||
Volatility rate | 35.70% | ||||||||||
Risk-free rate | 2.80% | ||||||||||
Vested (in shares) | shares | 469,010 | ||||||||||
Future share-based compensation expense | $ 1,100 | ||||||||||
Granted (in dollars per share) | $ / shares | $ 1.46 | ||||||||||
Accelerated vesting of stock options (in shares) | shares | 210,987,000 | ||||||||||
Executive Retention RSUs | Share-based Payment Arrangement, Tranche One | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Service period (in years) | 4 months 24 days | 4 months 24 days | |||||||||
Executive Retention RSUs | Share-based Payment Arrangement, Tranche Three | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Service period (in years) | 1 year 9 months 18 days | ||||||||||
Executive Performance RSUs | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | shares | 4,900,000 | ||||||||||
Executive Performance RSUs, Time-Based Vesting Conditions | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | shares | 3,100,000 | ||||||||||
Executive Performance RSUs, Performance Based Vesting Conditions | Executive Officer | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Granted (in shares) | shares | 1,800,000 | ||||||||||
Modifications | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Incremental share-based compensation resulting from modification | $ 2,200 | ||||||||||
Expected volatility, minimum | 38.40% | ||||||||||
Expected volatility, maximum | 48.10% | ||||||||||
Risk-free interest rate, minimum | 0.90% | ||||||||||
Risk-free interest rate, maximum | 3.60% | ||||||||||
Modifications | Minimum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share price (in dollars per share) | $ / shares | $ 3.79 | $ 3.79 | $ 3.79 | ||||||||
Expected life | 1 year | ||||||||||
Modifications | Maximum | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share price (in dollars per share) | $ / shares | $ 17.71 | 17.71 | $ 17.71 | ||||||||
Expected life | 5 years 6 months | ||||||||||
Terminated Director Options | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based compensation expense | $ (4,400) | ||||||||||
Incremental share-based compensation resulting from modification | $ 500 | ||||||||||
Share price (in dollars per share) | $ / shares | $ 1.52 | $ 1.52 | $ 1.52 | ||||||||
Volatility rate | 47.30% | ||||||||||
Risk-free rate | 4.10% | ||||||||||
Expected life | 3 years |
Share-Based Compensation - Common Stock Reserved (Details) - shares |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
May 31, 2021 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Mar. 21, 2022 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options issued and outstanding (in shares) | 7,813,366 | 12,853,072 | 15,712,434 | ||
Total shares of common stock reserved (in shares) | 43,767,101 | 41,789,670 | |||
Cancelled/Forfeited/Expired (in shares) | 3,770,724 | 1,632,052 | |||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSUs issued and outstanding (in shares) | 17,434,138 | 10,578,313 | 0 | ||
Total shares of common stock reserved (in shares) | 69,987 | ||||
Performance and Market Condition-Based Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cancelled/Forfeited/Expired (in shares) | 3,122,931 | ||||
2018 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options issued and outstanding (in shares) | 7,813,366 | 12,853,072 | |||
Total shares of common stock reserved (in shares) | 0 | ||||
2022 Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 2,052,669 | 3,310,803 | |||
Total shares of common stock reserved (in shares) | 18,076,331 | ||||
2022 Stock Plan | RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
RSUs issued and outstanding (in shares) | 17,434,138 | 10,884,476 | |||
2022 ESPP | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant (in shares) | 5,797,609 | 4,072,000 | |||
Common Stock and Preferred Stock Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants to purchase stock (in shares) | 3,282,652 | 3,282,652 | |||
Private placement warrants | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Outstanding warrants (in shares) | 7,386,667 | 7,386,667 | 7,386,667 |
Share-Based Compensation - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 34,334 | $ 57,925 | $ 12,231 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 29,573 | 40,113 | 0 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4,761 | 16,820 | 7,030 |
RSAs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 371 | 890 |
Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 0 | 4,311 |
Pre-close issuance of common stock for services | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0 | $ 621 | $ 0 |
Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
May 31, 2021 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Stock options | ||||
Beginning balance (in shares) | 12,853,072 | 15,712,434 | ||
Exercised (in shares) | (1,268,982) | (1,227,310) | ||
Cancelled/Forfeited/Expired (in shares) | (3,770,724) | (1,632,052) | ||
Ending balance (in shares) | 7,813,366 | 12,853,072 | 15,712,434 | |
Vested and exercisable, end of period (in shares) | 6,599,883 | |||
Weighted-Average Exercise Price | ||||
Beginning balance (in dollars per share) | $ 2.39 | $ 2.19 | ||
Exercised (in dollars per share) | 0.64 | 0.88 | ||
Cancelled/Forfeited/Expired (in dollars per share) | 3.64 | 1.67 | ||
Ending balance (in dollars per share) | 2.06 | $ 2.39 | $ 2.19 | |
Vested and exercisable, end of period (in dollars per share) | $ 1.93 | |||
Weighted-Averages Life (Years) and Aggregate Intrinsic Value | ||||
Weighted-Average Life (Years) | 6 years | 7 years | 9 years 2 months 12 days | |
Weighted-Average Life, Vested and exercisable | 5 years 9 months 18 days | |||
Intrinsic value, Beginning | $ 7,055 | $ 120,491 | ||
Intrinsic value, Ending | 14,942 | $ 7,055 | $ 120,491 | |
Aggregate intrinsic value, vested and exercisable | $ 13,272 | |||
Performance and Market Condition-Based Option | ||||
Stock options | ||||
Cancelled/Forfeited/Expired (in shares) | (3,122,931) |
Share-Based Compensation - RSU Activity (Details) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Weighted-Average Grant Date Fair Value Per Share | ||
Shares of common stock reserved (in shares) | 43,767,101 | 41,789,670 |
RSUs | ||
Total RSUs | ||
Beginning balance, unvested (in shares) | 10,578,313 | 0 |
Granted (in shares) | 12,199,830 | 11,521,853 |
Vested (in shares) | (3,552,392) | (445,503) |
Forfeited (in shares) | (1,791,613) | (498,037) |
Ending balance, unvested (in shares) | 17,434,138 | 10,578,313 |
Weighted-Average Grant Date Fair Value Per Share | ||
Beginning balance (in dollars per share) | $ 10.04 | $ 0 |
Granted (in dollars per share) | 1.64 | 10.82 |
Vested (in dollars per share) | 10.09 | 18.82 |
Forfeited (in dollars per share) | 8.72 | 20.24 |
Ending balance (in dollars per share) | $ 4.30 | $ 10.04 |
Shares of common stock reserved (in shares) | 69,987 | |
Time-based | ||
Total RSUs | ||
Beginning balance, unvested (in shares) | 9,171,289 | 0 |
Granted (in shares) | 8,055,250 | 9,662,716 |
Vested (in shares) | (3,083,382) | (144,094) |
Forfeited (in shares) | (1,791,613) | (347,333) |
Ending balance, unvested (in shares) | 12,351,544 | 9,171,289 |
Performance-based | ||
Total RSUs | ||
Beginning balance, unvested (in shares) | 0 | 0 |
Granted (in shares) | 1,805,550 | 0 |
Vested (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | 0 |
Ending balance, unvested (in shares) | 1,805,550 | 0 |
Market-based | ||
Total RSUs | ||
Beginning balance, unvested (in shares) | 1,407,024 | 0 |
Granted (in shares) | 2,339,030 | 1,859,137 |
Vested (in shares) | (469,010) | (301,409) |
Forfeited (in shares) | 0 | (150,704) |
Ending balance, unvested (in shares) | 3,277,044 | 1,407,024 |
Income Taxes - Loss Before Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ (87,409) | $ (111,339) | $ (16,496) |
Foreign | (3,321) | (239) | (1,617) |
Loss before provision for income taxes | $ (90,730) | $ (111,578) | $ (18,113) |
Income Taxes - Components of Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 777 | 231 | 50 |
Foreign | 0 | 0 | 0 |
Total Current | 777 | 231 | 50 |
Deferred: | |||
Federal | 122 | 92 | 264 |
State | (80) | 4 | 72 |
Foreign | 0 | 0 | 0 |
Total Deferred | 42 | 96 | 336 |
Total Provision for income taxes | $ 819 | $ 327 | $ 386 |
Income Taxes - Effective Tax Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Amount | |||
Tax provision (benefit) at U.S. statutory rate | $ (19,053) | $ (23,431) | $ (3,804) |
State income taxes | (2,519) | (2,514) | (409) |
Foreign taxes in excess of the U.S. statutory rate | 175 | 10 | 74 |
Change of valuation allowance | 15,288 | 21,501 | 2,397 |
Change in fair value of warrant liabilities | 1,892 | (4,166) | 1,275 |
Share based compensation | (46) | 8,804 | 1,548 |
Tax credits | 1,913 | (3,615) | (862) |
Section 162(m) limitation | 3,354 | 3,693 | 0 |
Other | (185) | 45 | 167 |
Total Provision for income taxes | $ 819 | $ 327 | $ 386 |
Percent | |||
Tax provision (benefit) at U.S. statutory rate | 21.00% | 21.00% | 21.00% |
State income taxes | 2.80% | 2.30% | 2.30% |
Foreign taxes in excess of the U.S. statutory rate | (0.20%) | 0.00% | (0.40%) |
Change of valuation allowance | (16.90%) | (19.30%) | (13.20%) |
Change in fair value of warrant liabilities | (2.10%) | 3.70% | (7.10%) |
Share based compensation | 0.10% | (7.90%) | (8.60%) |
Tax credits | (2.10%) | 3.20% | 4.80% |
Section 162(m) limitation | (3.70%) | (3.30%) | 0.00% |
Other | 0.20% | 0.00% | (0.90%) |
Tax Expense | (0.90%) | (0.30%) | (2.10%) |
Revision of Prior Period, Error Correction, Adjustment | |||
Amount | |||
State income taxes | $ (1,800) | ||
Change in fair value of warrant liabilities | $ (8,300) |
Income Taxes - Net Deferred Tax Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred tax assets | ||
Accrued compensation | $ 1,919 | $ 2,087 |
Operating lease liability | 1,322 | 1,822 |
Share-based compensation | 8,377 | 6,033 |
Net operating loss carryforwards | 28,430 | 20,984 |
Allowance for bad debt | 306 | 223 |
Tax credits | 1,702 | 3,615 |
Section 174 capitalization | 12,730 | 5,705 |
Other | 404 | (32) |
Total deferred tax assets | 55,190 | 40,437 |
Valuation allowance | (51,398) | (36,109) |
Net deferred tax assets | 3,792 | 4,328 |
Deferred tax liabilities | ||
Depreciation and amortization | (3,245) | (3,392) |
Operating lease assets | (1,107) | (1,454) |
Other | 0 | 0 |
Total deferred tax liabilities | (4,352) | (4,846) |
Net deferred tax liabilities | $ (560) | $ (518) |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance increase | $ 15.3 | $ 21.7 |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 92.4 | |
Net operating loss carryforwards, subject to expiration | 11.1 | |
Domestic Tax Authority | California Franchise Tax Board | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 75.8 | |
Domestic Tax Authority | Other Applicable State Jurisdictions | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | 25.5 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards, not subject to expiration | $ 0.7 |
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 1,629 | $ 427 | $ 43 |
Additions for current year items | 13 | 842 | 115 |
Additions for prior year items | 0 | 360 | 269 |
Reductions for prior year items | (820) | 0 | 0 |
Lapse of statute of limitations | 0 | 0 | 0 |
Ending Balance | $ 822 | $ 1,629 | $ 427 |
Net Loss Per Share - Narrative (Details) |
12 Months Ended |
---|---|
Dec. 31, 2023
class
| |
Earnings Per Share [Abstract] | |
Number of common stock classes | 1 |
Net Loss Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Numerator: | |||
Net loss attributable to Forge Global Holdings, Inc., basic | $ (90,221) | $ (111,859) | $ (18,499) |
Less: Change in fair value of Junior Preferred Stock warrant liability | 0 | (3,924) | 0 |
Net loss attributable to common stockholders, diluted | $ (90,221) | $ (115,783) | $ (18,499) |
Denominator: | |||
Weighted-average number of shares used to compute net loss per share attributable to common stockholders, basic (in shares) | 173,402,167 | 143,839,981 | 54,295,304 |
Dilutive effect of common share equivalents (in shares) | 0 | 1,173,365 | 0 |
Dilutive effect of common share equivalents (in shares) | 173,402,167 | 145,013,346 | 54,295,304 |
Net loss per share attributable to Forge Global Holdings, Inc. common stockholders: | |||
Basic (in dollars per share) | $ (0.52) | $ (0.78) | $ (0.34) |
Diluted (in dollars per share) | $ (0.52) | $ (0.80) | $ (0.34) |
Net Loss Per Share - Antidilutive Securities Excluded from Computation (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 36,351,959 | 35,471,190 | 104,801,830 |
Convertible preferred stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 0 | 0 | 73,914,150 |
Warrant | Warrants to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 3,282,652 | 3,282,652 | 3,774,437 |
Warrant | Private placement warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 7,386,667 | 7,386,667 | 0 |
Common stock subject to repurchase | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 435,136 | 1,064,323 | 11,400,806 |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 7,813,366 | 12,853,072 | 15,712,437 |
Restricted stock units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 17,434,138 | 10,884,476 | 0 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 21, 2022 |
Sep. 13, 2021 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Oct. 31, 2022 |
|
Related Party Transaction [Line Items] | ||||||
Adjustments to stock issuance costs | $ 58,700 | $ 58,673 | ||||
Acquisition-related transaction costs | $ 0 | 5,113 | $ 882 | |||
Proceeds from PIPE investment and A&R FPA investors | 0 | 208,500 | 0 | |||
Total revenues | 69,821 | 69,383 | 128,056 | |||
Professional services | 11,905 | 14,265 | 12,450 | |||
Transaction-based expenses | 431 | 483 | 3,034 | |||
Marketplace revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Total revenues | 25,790 | 40,665 | 107,723 | |||
Affiliated Entity | ||||||
Related Party Transaction [Line Items] | ||||||
Professional services | 1,100 | 900 | 800 | |||
Transaction-based expenses | 0 | 300 | 600 | |||
Affiliated Entity | Marketplace revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Total revenues | 0 | 1,200 | $ 0 | |||
Affiliated Entity | Temasek Holding | Forge Global Holdings, Inc. | ||||||
Related Party Transaction [Line Items] | ||||||
Ownership percentage | 5.00% | |||||
Affiliated Entity | Financial Technology Partners | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction | 18,300 | |||||
Adjustments to stock issuance costs | 17,400 | |||||
Acquisition-related transaction costs | 900 | |||||
Affiliated Entity | Temasek Holding | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued (in shares) | 1,000,000 | |||||
Proceeds from PIPE investment and A&R FPA investors | $ 10,000 | |||||
Immediate Family Member of Management or Principal Owner | Marketplace revenue | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction | 11,300 | 0 | ||||
Total revenues | $ 300 | $ 0 |
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