Bm Technologies, Inc. (BMTX) 10-K Annual Report Tue May 10 2022

Radnor, PA., March 31, 2022 — BM Technologies, Inc. (NYSE American: BMTX) (“BM Technologies,” “BMTX,” “we,” or the “Company”) one of the largest digital banking platforms and banking-as-a-service (BaaS) providers in the country, today reported record results for the three and twelve months ended December 31, 2021. Results reflect the expected impact of a restatement of non-cash compensation expense as discussed below, and differ from previously reported financials.

FOURTH QUARTER FINANCIAL HIGHLIGHTS

•Q4 2021 revenues increased 46% to $25.3 million from $17.3 million in Q4 2020.

•Q4 2021 net loss improved to $(1.1) million from a net loss of $(3.4) million in Q4 2020. Q4 2021 net loss includes a $0.8 million noncash loss on the revaluation of the private warrant liability.

•Q4 2021 core earnings1 were $3.1 million, or $0.26 per diluted share, compared to a loss of $2.2 million, or $(0.35) per diluted share, in Q4 2020.

•Q4 2021 core EBITDA1 increased to $7.8 million from $1.5 million in Q4 2020. Core EBITDA1 margin increased to 31% in Q4 2021 from 9% in Q4 2020.

FY 2021 FINANCIAL HIGHLIGHTS

•2021 revenues increased 41% to $94.6 million from $66.9 million in 2020.

•2021 net income increased to $17.6 million from a net loss of $11.8 million in 2020. 2021 Net income includes a $17.2 million noncash gain on the revaluation of the private warrant liability.

•2021 core earnings were $10.9 million, or $0.92 per diluted share, compared to a loss of $9.9 million, or $(1.61) per diluted share, in 2020.

•2021 core EBITDA1 increased to $28.6 million from $3.9 million in 2020. Core EBITDA1 margin increased to 30%.

•The Company had a cash balance of $25.7 million at December 31, 2021.

BUSINESS HIGHLIGHTS

•Average serviced deposits totaled $2.0 billion in Q4 2021; a 111% increase as compared to Q4 2020. Average new business serviced deposits increased $0.9 billion over the year to $1.3 billion from $0.4 billion in Q4 2020.

•Debit card spend was $0.8 billion in Q4 2021, a 14% increase compared to Q4 2020. New business debit spend increased 35% compared to Q4 2020.

•Revenue per 90-day active account increased 39% year over year to approximately $188 in 2021.

•Approximately 90 thousand new accounts opened in the fourth quarter 2021 bringing the year-to-date new account total to approximately 440 thousand new accounts opened.

•Higher Education Organic Deposits (deposits that are not part of a school disbursement and are indicative of primary banking behavior) for the twelve months ended December 31, 2021, increased 17% year over year to $2.2 billion.

•BMTX signed agreements with 5 new colleges and universities in Q4 2021, providing over 45,000 additional students access to BankMobile Disbursements and the BankMobile Vibe checking account bringing the totals for 2021 to 16 new schools and

1 Core metrics are Non-GAAP measures which adjust revenues to exclude certain items; a reconciliation appears on page 7 and 8 of this release.

The following information was filed by Bm Technologies, Inc. (BMTX) on Thursday, March 31, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Bm Technologies, Inc.'s 10-K Annual Report:

Legal - Other Highlight
Provision for Operating Losses The provision for operating losses represents our payments for losses resulting from fraud or theft-based transactions that have generally been disputed by our serviced deposit account holders and Regulation E card claim losses incurred by us, as well as estimated liability for such losses where such disputes have not been resolved as of the end of the reporting period.

Financial - Cash Flow Highlight
Cash Flows Used in Financing Activities Cash used in financing activities decreased $13.5 million as compared to the prior year.
Other - Other Highlight
Due to the nature of the judgments and assumptions management makes, actual results could differ from these judgments and estimates, which could have a material impact on the carrying values of our assets.
Financial - Cash Flow Highlight
Cash Flows Provided by Operating Activities Cash provided by operating activities was $27.5 million in the twelve months ended December 31, 2021 compared to cash provided of $16.0 million in the twelve months ended December 31, 2020, an increase of $11.5 million.
Other - Other Highlight
We had a substantial increase in cash from operating activities in the twelve months ended December 31, 2021 compared to the twelve months ended December 31, 2020.
Financial - Earnings
The increased profitability as compared...Read more
Financial - Shares
However, should additional liquidity be...Read more
Revenue - Product
The increase in revenue is...Read more
Revenue - Product
BMTX's business model leverages partners'...Read more
Financial - Earnings
For the twelve months ended...Read more
Other - Other
Certain accounting policies involve significant...Read more
Revenue - Geography
Effective January 6, 2021, the...Read more
Financial - Shares
The critical accounting policies that...Read more
Financial - Expense
Operating Expenses For the twelve...Read more
Revenue - Product
For the twelve months ended...Read more
Other - Other
The Company expects continued growth...Read more
Financial - Earnings
The effective tax rate differs...Read more
Other - Other
Intangible assets are amortized on...Read more
Financial - Shares
The increase in Salaries and...Read more
Other - Other
Compensation related to performance-based awards...Read more
Revenue - Product
This stimulus resulted in increased...Read more
Revenue - Product
With the initial outbreak of...Read more
Financial - Income
Income Tax Expense The Company's...Read more
Other - Other
BUSINESS MEASUREMENTS We believe that...Read more
Financial - Income
Current income tax expense reflects...Read more
Revenue - Product
In addition, we had a...Read more
Other - Other
Intangible assets that have finite...Read more
M & A - Other
There was no goodwill or...Read more
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Because this includes funds that...Read more
Financial - Cash Flow
Cash Flows Used in Investing...Read more
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The increase was almost entirely...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Bm Technologies, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 10.13: Material Contract

Exhibit 10.14: Material Contract

Exhibit 10.17: Material Contract

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: BMTX
CIK: 1725872
Form Type: 10-K Annual Report
Accession Number: 0001628280-22-013593
Submitted to the SEC: Tue May 10 2022 4:17:42 PM EST
Accepted by the SEC: Tue May 10 2022
Period: Friday, December 31, 2021
Industry: State Commercial Banks