Direct Digital Holdings Inc

For the period ended Dec 31, 2023. Filed Oct 15, 2024.

About this filing

A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2023 · Filed Oct 15, 2024

DRCT$0.91-39.7%Stored close · as of Oct 2, 2026

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Contents

Item 8. Consolidated Statements of Cash Flows

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)


	For the Year Ended December 31,
· 2023 · 2022
Cash Flows Provided By Operating Activities: · · · ·
Net (loss) income		$(6,844)	$4,167
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs		615	598
Amortization of intangible assets		1,954	1,954
Reduction in carrying amount of right-of-use assets		164	137
Depreciation and amortization of property, equipment and software		253	34
Stock-based compensation		706	154
Forgiveness of Paycheck Protection Program loan		—	(287)
Deferred income taxes		568	105
Loss on redemption of non-participating preferred units		—	590
Revaluation of tax receivable agreement liability		(331)	—
Loss on early termination of line of credit		300	—
Provision for credit losses/bad debt expense		422	17
Changes in operating assets and liabilities:
Accounts receivable		(11,275)	(18,500)
Prepaid expenses and other assets		201	307
Accounts payable		16,231	10,966
Accrued liabilities and TRA payable		(8)	2,618
Income taxes payable		(140)	174
Deferred revenues		(166)	(801)
Operating lease liability		(92)	(98)
Related party payable		—	(71)
Net cash provided by operating activities		2,558	2,064

Cash Flows Used In Investing Activities:
Cash paid for capitalized software and property and equipment		(178)	(688)
Net cash used in investing activities		(178)	(688)

Cash Flows Used In Financing Activities:
Proceeds from note payable		3,516	4,260
Payments on term loan		(677)	(576)
Proceeds from lines of credit		5,000	—
Payments on lines of credit		(2,000)	(400)
Payment of deferred financing costs		(576)	(525)
Proceeds from Issuance of Class A Common Stock, net of transaction costs		—	11,167
Acquisition and redemption of warrants, including expenses		(3,540)	—
Redemption of common units		—	(7,200)
Redemption of non-participating preferred units		—	(7,046)
Proceeds from options exercised		29	—
Proceeds from warrants exercised		122	—
Distributions to holders of LLC Units		(3,185)	(1,693)
Net cash used in financing activities		(1,311)	(2,013)

Net increase (decrease) in cash and cash equivalents		1,069	(637)
Cash and cash equivalents, beginning of the period		4,047	4,684
Cash and cash equivalents, end of the period		$5,116	$4,047

Supplemental Disclosure of Cash Flow Information:
Cash paid for taxes		$361	$47
Cash paid for interest		$3,736	$2,568

Non-cash Activities:
Property and equipment purchased included in accounts payable		$—	$19
Outside basis difference in partnership		$1,536	$5,270
Tax receivable agreement payable to Direct Digital Management, LLC		$1,286	$4,332
Tax benefit on tax receivable agreement		$250	$823
Prepaid distributions to holders of LLC Units included in related party receivable		$1,737	$—

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.