Rush Street Interactive Inc

Previous wording

We provide our customers with an array of leading gaming offerings such as real-money online casino, online sports betting and retail sports betting (i.e., sports betting services provided at bricks-and-mortar locations), as well as social gaming, which involves free-to-play games using virtual credits that users can earn or purchase. We launched our first social gaming website in 2015 and began accepting real-money bets in the United States in 2016. Currently, we offer real-money online casino, online sports betting and/or retail sports betting in 15 U.S. states and the three international markets as outlined in the table below.

Current wording

We provide our customers with an array of leading gaming offerings such as real-money online casino, online sports betting and retail sports betting (i.e., sports betting services provided at bricks-and-mortar locations), as well as social gaming, which involves free-to-play games using virtual credits that users can earn or purchase. We launched our first social gaming website in 2015 and began accepting real-money bets in the United States in 2016. Currently, we offer real-money online casino, online sports betting and/or retail sports betting in 15 U.S. states and the four international markets as outlined in the table below.

Previous wording

The chart below presents our average MAUs in the United States and Canada for the three months ended March 31, 2024 and 2023:

Current wording

The chart below presents our average MAUs in the United States and Canada for the six months ended June 30, 2024 and 2023:

Previous wording

The chart below presents our average MAUs in Latin America (including Mexico) for the three months ended March 31, 2024 and 2023:

Current wording

The chart below presents our average MAUs in Latin America (including Mexico) for the six months ended June 30, 2024 and 2023:

Previous wording

The chart below presents our ARPMAU in the United States and Canada for the three months ended March 31, 2024 and 2023:

Current wording

The chart below presents our ARPMAU in the United States and Canada for the six months ended June 30, 2024 and 2023:

Previous wording

The year-over-year increase in ARPMAU in the United States and Canada was mainly due to our continued operations in markets that launched during 2023 where we offer online casino in addition to online sports betting, the impact of our strategic advertising and marketing efforts in other markets where offer online casino and our focus on retaining quality players.

Current wording

The year-over-year increase in ARPMAU in the United States and Canada was mainly due to our continued growth in markets that launched during 2023 where we offer online casino in addition to online sports betting, such as Delaware, the impact of our strategic advertising and marketing efforts in other markets where offer online casino and our focus on retaining quality players.

Previous wording

The chart below presents our ARPMAU in Latin America (including Mexico) for the three months ended March 31, 2024 and 2023:

Current wording

The chart below presents our ARPMAU in Latin America (including Mexico) for the six months ended June 30, 2024 and 2023:

Previous wording

We currently offer real-money online casino, online sports betting and/or retail sports betting in 15 U.S. states, Colombia, Ontario, Canada and Mexico. We also provide social gaming (where permitted), where users can earn or purchase virtual credits to enjoy free-to-play games.

Current wording

We currently offer real-money online casino, online sports betting and/or retail sports betting in 15 U.S. states, Colombia, Mexico, Ontario, Canada and Peru. We also provide social gaming (where permitted), where users can earn or purchase virtual credits to enjoy free-to-play games.

Previous wording

Our online casino offering consists of a combination of licensed content from leading industry suppliers, customized third-party games and a small number of proprietary games that were developed exclusively for us. Third-party content is usually subject to standard revenue-sharing agreements specific to each supplier, where the supplier generally receives a percentage of the net gaming revenue generated from its casino games played on our platform. In exchange, we receive a limited license to offer the games on our platform to customers in permitted jurisdictions. We generally pay much lower fees on revenue generated through our proprietary casino games such as our multi-bet blackjack (with side bets: 21+3, Lucky Ladies, Lucky Lucky) and single-deck blackjack, which primarily relate to hosting/remote gaming server fees and certain intellectual property license fees.

Current wording

Our online casino offering consists of a combination of licensed content from leading industry suppliers, customized third-party games and a small number of proprietary games that were developed in-house or at our direction exclusively for us. Third-party content is usually subject to standard revenue-sharing agreements specific to each supplier, where the supplier generally receives a percentage of the net gaming revenue generated from its casino games played on our platform. In exchange, we receive a limited license to offer the games on our platform to customers in permitted jurisdictions. We generally pay much lower fees on revenue generated through our proprietary casino games such as our multi-bet blackjack (with side bets: 21+3, Lucky Ladies, Lucky Lucky) and single-deck blackjack, which primarily relate to hosting/remote gaming server fees and certain intellectual property license fees.

Previous wording

Costs of Revenue. Costs of revenue consist primarily of (i) revenue share and market access fees, (ii) platform and content fees, (iii) gaming taxes, (iv) payment processing fees and chargebacks and (v) salaries, bonuses, benefits and share-based compensation for dedicated personnel. These costs are primarily variable in nature and should typically correlate with the change in revenue. Revenue share and market access fees consist primarily of amounts paid to local partners that hold the applicable gaming license, providing us the ability to offer our real-money online offerings in the respective jurisdictions. Our platform and content fees are primarily driven by costs associated with third-party casino content, data and streaming, sports betting trading services and certain elements of our platform technology, such as geolocation and know-your-customer. Gaming taxes relate to state taxes that are determined on a jurisdiction-by-jurisdiction basis, or federal excise taxes that are determined based on a percentage of the total online sports and retail sports bets placed. We incur payment processing costs on customer deposits, withdrawals and occasionally chargebacks (i.e., when a payment processor contractually disallows customer deposits in the normal course of business).

Current wording

Costs of Revenue. Costs of revenue consist primarily of (i) revenue share and market access fees, (ii) platform and content fees, (iii) gaming taxes, (iv) payment processing fees and chargebacks and (v) salaries, bonuses, benefits and share-based compensation for dedicated personnel. Other than salaries, bonuses, benefits and share-based compensation, these costs are primarily variable in nature and should typically correlate with the change in revenue. Revenue share and market access fees consist primarily of amounts paid to local partners that hold the applicable gaming license, providing us the ability to offer our real-money online offerings in the respective jurisdictions. Our platform and content fees are primarily driven by costs associated with third-party casino content, data and streaming, sports betting trading services and certain elements of our platform technology, such as geolocation and know-your-customer. Gaming taxes relate to state taxes that are determined on a jurisdiction-by-jurisdiction basis, or federal excise taxes that are determined based on a percentage of the total online sports and retail sports bets placed. We incur payment processing costs on customer deposits, withdrawals and occasionally chargebacks (i.e., when a payment processor contractually disallows customer deposits in the normal course of business).

Previous wording

With respect to paid marketing, we use a broad array of advertising channels, including television, radio, social media platforms, sponsorships, affiliates and paid search, and other digital channels. We also use other forms of marketing and outreach, such as our social media channels, first-party websites, media interviews and other media spots and organic searches. These efforts are primarily concentrated within the specific jurisdictions where we operate or intend to operate. We believe there is significant benefit to having a flexible approach to advertising spending as we can quickly redirect our advertising spending based on dynamic testing of our advertising methods and channels.

Current wording

With respect to paid marketing, we use a broad array of advertising channels, including television, radio, social media platforms, sponsorships, affiliates and paid search, and other digital channels. We also use other forms of marketing and outreach, such as our social media channels, first-party websites, media interviews and other media spots and organic searches. These efforts are primarily concentrated within the specific jurisdictions where we operate or intend to operate. We believe there is a significant benefit in maintaining the flexibility to reallocate advertising spending across channels based on the latest marketing data, ensuring continuous alignment with our overall marketing strategy.

Previous wording

General and Administrative. General and administrative expenses consist primarily of administrative personnel costs, including salaries, bonuses and benefits, share-based compensation expense for dedicated personnel, professional fees related to legal, compliance, audit and consulting services, rent and insurance costs.

Current wording

General and Administrative. General and administrative expenses consist primarily of administrative personnel costs, including salaries, bonuses and benefits, share-based compensation expense for dedicated personnel, professional fees related to legal, compliance, audit and consulting services, software, rent and insurance costs.

Previous wording

Depreciation and Amortization. Depreciation and amortization expense consists of depreciation on property and equipment and amortization of intangible assets (including market access licenses, gaming jurisdictional licenses, internally developed software, trademarks, developed technology and media content) and finance lease right-of-use assets over their useful lives.

Current wording

Depreciation and Amortization. Depreciation and amortization expense consists of depreciation on property and equipment and amortization of intangible assets (including market access licenses, gaming jurisdictional licenses, internally developed software, trademarks, developed technology, media content and customer lists) and finance lease right-of-use assets over their useful lives.

Previous wording

Costs of Revenue. Costs of revenue increased by $37.4 million, or 35%, to $144.5 million for the three months ended March 31, 2024 as compared to $107.2 million for the same period in 2023. The increase was mainly due to and directly correlated with our expansion and continued growth as noted above. Market access costs, gaming taxes, operating expenses, and payment processing costs contributed $15.4 million, $11.6 million, $6.1 million and $3.6 million, respectively, to the period-over-period increase in costs of revenue. Personnel costs contributed to the remainder of the period-over-period increase. Costs of revenue as a percentage of revenue was 66% for the three months ended March 31, 2024 and 2023.

Current wording

Costs of Revenue. Costs of revenue increased by $34.6 million, or 32%, to $144.5 million for the three months ended June 30, 2024 as compared to $109.9 million for the same period in 2023. The increase was mainly due to and directly correlated with our expansion and continued growth as noted above. Market access costs, gaming taxes, operating expenses, and payment processing costs contributed $13.3 million, $12.4 million, $6.0 million and $2.2 million, respectively, to the period-over-period increase in costs of revenue. Personnel costs contributed to the remainder of the period-over-period increase. Costs of revenue as a percentage of revenue decreased to 66% for the three months ended June 30, 2024 as compared to 67% for the same period in 2023.

Previous wording

Interest Income, Net. Interest income increased by $1.2 million, or 310%, to $1.6 million for the three months ended March 31, 2024 as compared to $0.4 million for the same period in 2023. The increase in interest income was mainly attributed to higher interest rates on cash and cash equivalents accounts as compared to the same period in 2023.

Current wording

Interest Income, Net. Interest income increased by $1.6 million, or 566%, to $1.9 million for the three months ended June 30, 2024 as compared to $0.3 million for the same period in 2023. The increase in interest income was mainly attributed to higher interest rates on cash and cash equivalents accounts as compared to the same period in 2023.

Previous wording

Income Tax Expense. Income tax expense increased by $2.5 million, or 89%, to $5.3 million for the three months ended March 31, 2024 as compared to $2.8 million for the same period in 2023. Income tax expense for the three months ended March 31, 2024 is attributable to the profitability of our foreign operations for which both current and deferred taxes are recorded. Income tax expense as a percentage of revenue was 2% for the three months ended March 31, 2024 and 2023.

Current wording

Income Tax Expense. Income tax expense increased by $3.7 million, or 135%, to $6.4 million for the three months ended June 30, 2024 as compared to $2.7 million for the same period in 2023. Income tax expense is attributable to the profitability of our foreign operations for which both current and deferred taxes are recorded. Income tax expense as a percentage of revenue increased to 3% for the three months ended June 30, 2024 as compared to 2% for the same period in 2023.

Previous wording

Revenue. Revenue increased by $55.1 million, or 34%, to $217.4 million for the three months ended March 31, 2024 as compared to $162.4 million for the same period in 2023. The increase was mainly due to and directly correlated with our continued growth across existing markets and expansion into the new market of Delaware, which launched after March 2023. The increase reflects higher period-over-period online casino and sports betting revenue of $58.0 million and social gaming revenue of $0.1 million. These increases in revenue were partly offset by a decrease in retail sports betting revenue of $3.0 million, which was attributable to the Company’s exit from the Connecticut market.

Current wording

Revenue. Revenue increased by $110.4 million, or 34%, to $437.8 million for the six months ended June 30, 2024 as compared to $327.4 million for the same period in 2023. The increase was mainly due to and directly correlated with our continued growth across existing markets and expansion into new market of Delaware, which launched after June 2023. The increase reflects higher period-over-period online casino and sports betting revenue of $116.1 million and social gaming revenue of $0.1 million, which was partially offset by a decrease of retail sports betting revenue of $5.8 million due to the Company’s exit from the Connecticut market.

Previous wording

Advertising and Promotions. Advertising and promotions expense decreased by $11.5 million, or 23%, to $38.4 million for the three months ended March 31, 2024 as compared to $49.9 million for the same period in 2023. The decrease was mainly due to management’s continued strategy of rationalizing marketing spend as the North American and Latin American online gaming markets continue to mature. Advertising and promotions expense as a percentage of revenue decreased to 18% for the three months ended March 31, 2024 as compared to 31% for the same period in 2023.

Current wording

Advertising and Promotions. Advertising and promotions expense decreased by $15.6 million, or 17%, to $75.3 million for the six months ended June 30, 2024 as compared to $90.9 million for the same period in 2023. The decrease was mainly due to management’s strategy of rationalizing marketing spend as the North American and Latin American online gaming industries continue to mature. Advertising and promotions expense as a percentage of revenue decreased to 17% for the six months ended June 30, 2024 as compared to 28% for the same period in 2023.

Previous wording

General and Administrative. General and administrative expense increased by $4.3 million, or 20%, to $25.9 million for the three months ended March 31, 2024 as compared to $21.6 million for the same period in 2023. The increase was primarily due to higher personnel and other administrative costs, which is consistent with the ongoing growth of our business. General and administrative expense as a percentage of revenue was 12% for the three months ended March 31, 2024 as compared to 13% for the same period in 2023.

Current wording

General and Administrative. General and administrative expense increased by $10.9 million, or 26%, to $53.1 million for the six months ended June 30, 2024 as compared to $42.2 million for the same period in 2023. The increase was primarily due to higher personnel and other administrative costs, which is consistent with the ongoing growth of our business. General and administrative expense as a percentage of revenue decreased to 12% for the six months ended June 30, 2024 as compared to 13% for the same period in 2023.

Previous wording

Depreciation and Amortization. Depreciation and amortization expense increased by $1.3 million, or 23%, to $7.1 million for the three months ended March 31, 2024 as compared to $5.8 million for the same period in 2023. The increase was mainly due to additional costs to acquire property and equipment and other definite-lived intangible assets such as gaming licenses and internally developed software. Depreciation and amortization expense as a percentage of revenue decreased to 3% for the three months ended March 31, 2024 as compared to 4% for the same period in 2023.

Current wording

Depreciation and Amortization. Depreciation and amortization expense increased by $0.9 million, or 7%, to $14.7 million for the six months ended June 30, 2024 as compared to $13.8 million for the same period in 2023. The increase was mainly due to additional costs to acquire definite-lived intangible assets such as internally developed software and media content. Depreciation and amortization expense as a percentage of revenue decreased to 3% for the six months ended June 30, 2024 as compared to 4% for the same period in 2023.

Previous wording

Our results of operations may, and generally do, fluctuate due to seasonal trends and other factors such as level of customer engagement, online casino and sports betting results and other factors that are outside of our control or that we cannot reasonably predict. Our quarterly financial performance depends on our ability to attract and retain customers. Customer engagement in our online offerings may vary due to, among other things, customer satisfaction with our platform, the number, timing and type of sporting events, the length of professional sports seasons, our offerings and marketing efforts and those of our competitors (including those not just in the online gaming industry but also in the entertainment industry broadly), weather conditions, public sentiment, an economic downturn or other economic factors such as inflation, economic uncertainty or macroeconomic conditions. As customer engagement varies, so may our quarterly financial performance.

Current wording

Our results of operations may, and generally do, fluctuate due to seasonal trends and other factors such as level of customer engagement, online casino and sports betting results and other factors that are outside of our control or that we cannot reasonably predict. Our quarterly financial performance depends on our ability to attract and retain customers. Customer engagement in our online offerings may vary due to, among other things, customer satisfaction with our platform, the number, timing and type of sporting events, the length of professional sports seasons, our offerings and marketing efforts and those of our competitors (including those not just in the online gaming industry but also in the entertainment industry more broadly), weather conditions, public sentiment, an economic downturn or other economic factors such as inflation, economic uncertainty or macroeconomic conditions. As customer engagement varies, so may our quarterly financial performance.

Previous wording

Our online sports betting and retail sports betting operations experience seasonality based on the relative popularity and frequency of certain sporting events. Although sporting events occur throughout the year, our online sports betting customers are most active during the NFL, NBA, and college football and basketball seasons. With respect to our online sports betting and retail sports betting operations, customer activity tends to increase, and we may experience increased volatility, in connection with major sporting events such as the NFL super bowl, the NBA finals and NCAA basketball March Madness.

Current wording

Our online sports betting and retail sports betting operations experience seasonality based on the relative popularity and frequency of certain sporting events. Although sporting events occur throughout the year, our online sports betting customers are most active during the NFL, NBA, and college football and basketball seasons. With respect to our online sports betting and retail sports betting operations, customer activity tends to increase, and we may experience increased volatility, in connection with major sporting events such as the NFL super bowl, the NBA finals and NCAA basketball March Madness. In addition, sports betting activity is impacted by the occurrence of periodic events (e.g., COPA America, UEFA, Olympics).

Previous wording

From a legislative perspective, we continue to see strong momentum to legalize and regulate online sports betting in new jurisdictions in the Americas. As expected, many of these new jurisdictions are first trying to legalize and regulate online sports betting before considering whether to legalize and regulate online casino. However, given the tax generation success of online casino in markets where it has been legalized, we also continue to see strong momentum for online casino in several jurisdictions in the Americas that are looking for additional revenue sources to fund expanding budgets.

Current wording

From a legislative perspective, we continue to see momentum to legalize and regulate online sports betting in new jurisdictions in the Americas. As expected, many of these new jurisdictions are first trying to legalize and regulate online sports betting before considering whether to legalize and regulate online casino. However, given the tax generation success of online casino in markets where it has been legalized, we also continue to see momentum for online casino in several jurisdictions in the Americas that are looking for additional revenue sources to fund governmental budgets. Additionally, we have seen governmental officials or legislative or regulatory bodies in certain jurisdictions in which we operate consider, and in limited cases to date, approve, increases in gaming-related taxes. While it is unclear at this time if this will continue, any proposed legislation or other similar actions to increase existing taxes on online sportsbook and/or casino could negatively impact our business, profitability and cash flows.

Previous wording

Many jurisdictions in which we operate or intend to operate in the future have unique regulatory and/or technological requirements, which require us to have robust, scalable networks and infrastructure, and agile engineering and software development capabilities. The global gaming and entertainment industry has seen significant consolidation, regulatory change and technological development over the last few years, and we expect this trend to continue into the foreseeable future, which may create opportunities for us but may also create competitive and margin pressures. We are starting to see some other online gaming operators rationalize their marketing spend in North American jurisdictions, although their marketing spend may vary by quarter depending on, among other things, sports calendars, new market launches and prior commitments.

Current wording

We operate within the global gaming and entertainment industry, which is comprised of diverse products and offerings that compete for consumers’ time and disposable income. We face and expect to continue to face significant competition from other industry players both within existing and new markets including from competitors with access to more resources, existing assets such as brands or databases, or experience. Customer demands for new and innovative offerings and features require us to continue to invest in new technologies, features and content to improve the customer experience. Many jurisdictions in which we operate or intend to operate in the future have unique regulatory and/or technological requirements, which require us to have robust, scalable networks and infrastructure, and agile engineering and software development capabilities. The global gaming and entertainment industry has seen significant consolidation, regulatory change and technological development over the last few years, and we expect this trend to continue into the foreseeable future, which may create opportunities for us but may also create competitive and margin pressures. We are starting to see some other online gaming operators rationalize their marketing spend in North American jurisdictions, although their marketing spend may vary by quarter depending on, among other things, sports calendars, new market launches and prior commitments.

Previous wording

We had $191.2 million in cash and cash equivalents as of March 31, 2024 (excluding legally restricted customer cash deposits, which we segregate from our operating cash balances). We intend to continue to finance our operations without third-party debt and entirely from operating cash flows and cash on our balance sheet.

Current wording

We had $193.8 million in cash and cash equivalents as of June 30, 2024 (excluding legally restricted customer cash deposits, which we segregate from our operating cash balances). We intend to continue to finance our operations without third-party debt and entirely from operating cash flows and cash on our balance sheet.

Previous wording

We expect our material cash requirements during the upcoming 12-month period to include $11.1 million of non-cancellable purchase obligations with marketing vendors, $3.7 million of license and market access fees, and $2.4 million of lease payments. In addition, we will continue to pursue expansion into new markets, which is expected to require significant capital investments. We have $46.1 million of additional non-cancellable purchase obligations including arrangements with marketing vendors, obligations for license and market access fees, and lease payments subsequent to the upcoming 12-month period. See Note 12 to our unaudited condensed consolidated financial statements included elsewhere in this Report. Management believes our current cash holdings and, if necessary or desirable, various avenues available to pursue funding in the capital markets will suffice to fund these obligations.

Current wording

We expect our material cash requirements during the upcoming 12-month period to include $11.4 million of non-cancellable purchase obligations with marketing vendors, $3.7 million of license and market access fees, and $2.5 million of lease payments. In addition, we will continue to pursue expansion into new markets, which is expected to require significant capital investments. We have $44.2 million of additional non-cancellable purchase obligations including arrangements with marketing vendors, obligations for license and market access fees, and lease payments subsequent to the upcoming 12-month period. See Note 12 to our unaudited condensed consolidated financial statements included elsewhere in this Report. Management believes our current cash holdings and, if necessary or desirable, various avenues available to pursue funding in the capital markets will suffice to fund these obligations.

Previous wording

As of March 31, 2024 and December 31, 2023, we had an outstanding letter of credit for $3.2 million and $3.1 million, respectively, in connection with our operations in Colombia, for which no amounts had been drawn.

Current wording

As of June 30, 2024 and December 31, 2023, we had no outstanding debt. As of June 30, 2024 and December 31, 2023, we had an outstanding letter of credit for $4.6 million and $3.1 million, respectively, in connection with our operations in Colombia, for which no amounts had been drawn.

Previous wording

The following table shows our cash flows from operating activities, investing activities and financing activities for the three months ended March 31, 2024 and 2023:

Current wording

The following table shows our cash flows from operating activities, investing activities and financing activities for the six months ended June 30, 2024 and 2023:

Previous wording

Operating activities. Net cash provided by operating activities was $30.9 million for the three months ended March 31, 2024 as compared to $24.3 million used in operating activities during the same period in 2023. The increased provision of cash reflects a lower period-over-period net loss totaling $22.3 million, increased non-cash expenses of $0.8 million and working capital of $32.6 million. The increase in non-cash expenses was driven primarily by additional depreciation and amortization totaling $1.3 million and share-based compensation expense totaling $0.8 million, which was partially offset by deferred income taxes of $0.7 million and write-offs of long-lived assets of $0.6 million.

Current wording

Operating activities. Net cash provided by operating activities was $51.1 million for the six months ended June 30, 2024 as compared to $37.2 million used in operating activities during the same period in 2023. The increased provision of cash reflects a lower period-over-period net loss totaling $38.7 million, increased non-cash expenses of $2.4 million and an increase of $47.2 million due to the change in working capital. The increase in non-cash expenses was driven primarily by additional share-based compensation expense totaling $2.9 million, and depreciation and amortization totaling $0.9 million, which was partially offset by deferred income taxes of $0.8 million and write-offs of long-lived assets of $0.7 million.

Previous wording

Investing activities. Net cash used in investing activities for the three months ended March 31, 2024 increased by $0.9 million to $7.4 million, as compared to $6.5 million during the same period in 2023. The increase reflects higher period-over-period cash paid for internally developed software costs totaling $0.5 million, an increase in cash paid for the acquisition of gaming licenses totaling $0.3 million, an increase in cash paid for the development of media content totaling $0.1 million and an increase in short-term investment of $0.1 million, which was partially offset by a reduction of property and equipment purchases totaling $0.2 million.

Current wording

Investing activities. Net cash used in investing activities for the six months ended June 30, 2024 decreased by $0.2 million to $18.9 million, as compared to $19.1 million during the same period in 2023. The decrease reflects lower period-over-period cash paid for acquisition of gaming licenses totaling $3.0 million and purchases of property and equipment totaling $0.1 million. This was partially offset by higher internally developed software costs totaling $1.0 million, increase in short-term investment of $1.9 million, and increase in cash paid for the development of media content totaling $0.1 million.

Previous wording

Financing activities. Net cash used in financing activities for the three months ended March 31, 2024 increased by $0.2 million to $0.2 million, as compared to less than $0.1 million during the same period in 2023. The period-over-period difference reflects higher principal payments of finance lease liabilities.

Current wording

Financing activities. Net cash used in financing activities for the six months ended June 30, 2024 increased by $0.2 million to $0.5 million, as compared to $0.3 million during the same period in 2023. The period-over-period difference reflects higher principal payments of finance lease liabilities.

Previous wording

Effect of exchange rate changes on cash, cash equivalents and restricted cash. The net effect of exchange rate changes on cash, cash equivalents and restricted cash, when expressed in U.S. Dollar terms, for the three months ended March 31, 2024 decreased by $0.3 million to less than $0.1 million, as compared to $0.3 million for same period in 2023. These changes were due to fluctuations in foreign currency exchange rates from period to period.

Current wording

Effect of exchange rate changes on cash, cash equivalents and restricted cash. The effect of exchange rate changes decreased cash, cash equivalents and restricted cash by $3.9 million for the six months ended June 30, 2024 as compared to an increase of $1.9 million for the same period in 2023. These changes were due to fluctuations in foreign currency exchange rates from period to period.

Previous wording

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable. We are an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits of this extended transition period. This may make it difficult or impossible to compare our financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions for emerging growth companies because of the potential differences in accounting standards used.

Current wording

Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”) exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can choose not to take advantage of the extended transition period and comply with the requirements that apply to non-emerging growth companies, and any such election to not take advantage of the extended transition period is irrevocable. As of the date of this Report, we are an “emerging growth company” as defined in Section 2(a) of the Securities Act of 1933, as amended, and have elected to take advantage of the benefits of this extended transition period. This may make it difficult or impossible to compare our financial results with the financial results of another public company that is either not an emerging growth company or is an emerging growth company that has chosen not to take advantage of the extended transition period exemptions for emerging growth companies because of the potential differences in accounting standards used.