KATAPULT HOLDINGS, INC., 10-Q filed on 5/15/2025
Quarterly Report
v3.25.1
Cover - shares
 3 Months Ended
Mar. 31, 2025
May 12, 2025
Entity Listings [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 001-39116  
Entity Registrant Name Katapult Holdings, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 84-2704291  
Entity Address, Address Line One 5360 Legacy Drive, Building 2  
Entity Address, City or Town Plano  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75024  
City Area Code 833  
Local Phone Number 528-2785  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   4,537,568
Amendment Flag false  
Entity Central Index Key 0001785424  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
Common Stock, par value $0.0001 per share    
Entity Listings [Line Items]    
Title of 12(b) Security Common Stock, par value $0.0001 per share  
Trading Symbol KPLT  
Security Exchange Name NASDAQ  
Redeemable Warrants    
Entity Listings [Line Items]    
Title of 12(b) Security Redeemable Warrants  
Trading Symbol KPLTW  
Security Exchange Name NASDAQ  
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Current assets:    
Cash and cash equivalents $ 5,965 $ 3,465
Restricted cash 8,346 13,087
Property held for lease, net of accumulated depreciation and impairment (Note 3) 66,913 67,085
Prepaid expenses and other current assets 4,445 6,731
Total current assets 85,669 90,368
Property and equipment, net 244 253
Capitalized software and intangible assets, net 2,155 2,076
Right-of-use assets, non-current 376 383
Security deposits 91 91
Total assets 88,535 93,171
Current liabilities:    
Accounts payable 3,040 1,491
Accrued liabilities (Note 4) 18,945 17,372
Accrued litigation settlement (Note 9) 2,199 2,199
Unearned revenue 5,711 4,823
Revolving line of credit, net (Note 5) 77,663 82,582
Term loan, net, current (Note 5) 31,490 30,047
Lease liabilities 129 179
Total current liabilities 139,177 138,693
Lease liabilities, non-current 431 444
Other liabilities 614 828
Total liabilities 140,222 139,965
STOCKHOLDERS' DEFICIT    
Common stock, $.0001 par value-- 250,000,000 shares authorized; 4,483,544 and 4,446,540 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 0 0
Additional paid-in capital 102,452 101,657
Accumulated deficit (154,139) (148,451)
Total stockholders' deficit (51,687) (46,794)
Total liabilities and stockholders' deficit $ 88,535 $ 93,171
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Common stock par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 250,000,000 250,000,000
Common stock, shares issued (in shares) 4,483,544 4,446,540
Common stock, shares outstanding (in shares) 4,483,544 4,446,540
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue    
Rental revenue $ 71,078 $ 64,142
Other revenue 868 919
Total revenue 71,946 65,061
Cost of revenue 57,597 48,573
Gross profit 14,349 16,488
Operating expenses 14,885 12,688
Income (loss) from operations (536) 3,800
Interest expense and other fees (5,144) (4,527)
Interest income 57 324
Change in fair value of warrant liability (36) (162)
Loss before income taxes (5,659) (565)
Provision for income taxes (29) (5)
Net loss $ (5,688) $ (570)
Weighted average common shares outstanding - basic (in shares) 4,618,000 4,242,000
Weighted average common shares outstanding - diluted (in shares) 4,618,000 4,242,000
Net loss per common share - basic (in dollars per share) $ (1.23) $ (0.13)
Net loss per common share - diluted (in dollars per share) $ (1.23) $ (0.13)
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2023   4,073,000    
Beginning balance at Dec. 31, 2023 $ (27,992) $ 0 $ 94,544 $ (122,536)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net loss (570)     (570)
Vesting of restricted stock units (in shares)   55,000    
Repurchase of restricted stock for payroll tax withholding (in shares)   (22,000)    
Repurchases of restricted stock for payroll tax withholding (312)   (312)  
Stock-based compensation expense 1,391   1,391  
Ending balance (in shares) at Mar. 31, 2024   4,106,000    
Ending balance at Mar. 31, 2024 $ (27,483) $ 0 95,623 (123,106)
Beginning balance (in shares) at Dec. 31, 2024 4,446,540 4,447,000    
Beginning balance at Dec. 31, 2024 $ (46,794) $ 0 101,657 (148,451)
Increase (Decrease) in Stockholders' Equity [Roll Forward]        
Net loss (5,688)     (5,688)
Vesting of restricted stock units (in shares)   62,000    
Repurchase of restricted stock for payroll tax withholding (in shares)   (25,000)    
Repurchases of restricted stock for payroll tax withholding (271)   (271)  
Stock-based compensation expense $ 1,066   1,066  
Ending balance (in shares) at Mar. 31, 2025 4,483,544 4,484,000    
Ending balance at Mar. 31, 2025 $ (51,687) $ 0 $ 102,452 $ (154,139)
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net loss $ (5,688) $ (570)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 39,392 34,026
Depreciation for early lease purchase options (buyouts) 9,664 7,613
Depreciation for impaired leases 6,632 5,636
Change in fair value of warrants and other non-cash items 36 162
Stock-based compensation 1,066 1,391
Amortization of debt discount 963 669
Amortization of debt issuance costs, net 88 66
Accrued PIK interest expense 480 347
Amortization of right-of-use assets 76 76
Changes in operating assets and liabilities:    
Property held for lease (55,185) (45,249)
Prepaid expenses and other current assets 2,217 1,029
Accounts payable 1,549 754
Accrued liabilities 1,573 (4,123)
Accrued litigation (250) 0
Lease liabilities (63) (55)
Unearned revenues 888 208
Net cash provided by operating activities 3,438 1,980
Cash flows from investing activities:    
Purchases of property and equipment (24) 0
Additions to capitalized software (377) (126)
Net cash used in investing activities (401) (126)
Cash flows from financing activities:    
Proceeds from revolving line of credit 5,128 10,058
Principal repayments on revolving line of credit (10,135) (2,840)
Repurchases of restricted stock (271) (312)
Net cash (used in) provided by financing activities (5,278) 6,906
Net (decrease) increase in cash, cash equivalents and restricted cash (2,241) 8,760
Cash and cash equivalents and restricted cash at beginning of period 16,552 28,811
Cash and cash equivalents and restricted cash at end of period 14,311 37,571
Supplemental disclosure of cash flow information:    
Cash paid for interest 3,661 3,382
Cash paid for income taxes 0 112
Cash paid for operating leases $ 111 $ 82
v3.25.1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
Business— Katapult Holdings, Inc. (“Katapult” or the “Company”) is a technology driven lease-to-own platform that integrates with omnichannel retailers and e-commerce platforms to power the purchasing of everyday durable goods for underserved U.S. non-prime consumers. Through the Company’s point-of-sale (“POS”) integrations and innovative mobile app featuring Katapult Pay, consumers who may be unable to access traditional financing can shop a growing network of merchant partners.

The Company experiences moderate seasonal fluctuations in our revenue as a result of consumer spending patterns. Historically, our revenue is strongest during the first quarter primarily due to higher gross originations during the fourth quarter holiday season. Our first quarter revenue is also impacted by the federal and state income tax refunds that our customers receive, which in the past, has led to our customers more frequently exercising the early purchase option on their lease agreements. Adverse events that occur could have a disproportionate effect on our financial results throughout the year.
Subsidiaries— The condensed consolidated financial statements of Katapult include the accounts of the Company and its wholly owned subsidiaries Katapult Intermediate Holdings LLC (formerly known as Keys Merger Sub 2, LLC), a Delaware limited liability company formed in December 2020, Katapult Group, Inc. (formerly known as Cognical, Inc.), a Delaware corporation incorporated in March 2012, Katapult SPV-1 LLC, a Delaware limited liability company formed in 2019, and Katapult SPV-2 LLC, a Delaware limited liability company formed in 2025. Legacy Katapult was incorporated in the state of Delaware in 2016. Katapult Group originates all of the Company's lease agreements with customers.
Basis of Presentation— The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The Company believes the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes contained in the Annual Report on Form 10-K for the year ended December 31, 2024. The condensed consolidated financial statements include the accounts of Katapult Holdings, Inc. and its wholly owned subsidiaries. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair presentation have been included in these condensed consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation.
v3.25.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates— The preparation of the condensed consolidated financial statements in accordance with U.S. 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 condensed consolidated financial statements, and the reported amounts of income and expense during the reporting periods. The most significant estimates relate to property held for lease and the related depreciation method, impairments, and the valuation allowance associated with deferred tax assets. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other risk-based factors. Changes in estimates are reflected in reported amounts in the period in which they become known. Actual results could differ from those estimates.

Rental Revenue— Lease-purchase agreements, which comprise the majority of total revenue, fall within the scope of ASC 842, Leases under lessor accounting and revenue is recognized in the period it is earned and cash is collected. Property held for lease is leased to customers pursuant to lease-purchase agreements with an initial term: typically one week, two weeks, or one month, with non-refundable lease payments. Generally, the customer has the right to acquire title either through a 90-day promotional pricing option, an early lease-purchase option (buyout), or by completing all lease renewal payments, generally over 12 or 18 months. On any current lease, customers have the option to terminate the agreement at any time without penalty in accordance with the lease term. Amounts received from customers who elect early lease-purchase options (buyouts) are included in rental revenue. Lease payments received prior to their due dates are deferred and recorded as unearned revenue and are recognized as rental revenue in the period in which the revenue is earned. Services are considered to be rendered and revenue earned over the lease term. Rental revenue also includes an initial agreed-upon amount for executing customer lease-purchase agreements. Payments are received upon submission of the applications and execution of the lease-purchase agreements.
Revenues from leases that originated from merchants are generally recorded net of sales taxes as sales tax is collected from each customer's lease payment and a sales tax payable is recorded for remittance to the respective state. Revenue is recognized for leases in the period it is earned and cash is collected. For Katapult Pay transactions, all sales tax is paid by the Company upon purchase of the goods and is recorded in the cost basis of the capitalized property held for lease.
Property Held for Lease, Net of Accumulated Depreciation and Impairment— Property held for lease consists of furniture, mattresses, customer electronics, appliances, and other durable goods offered for lease-purchase in the normal course of business. Such property is provided to customers pursuant to a lease-purchase agreement with a minimum lease term; typically one week, two weeks, or one month. The renewal periods of the initial lease term of the agreement are typically 12 or 18 months. Customers may terminate a lease agreement at any time without penalty. The average customer continues to lease the property for approximately 8 months because the customer either exercises the early lease-purchase option (buyout) or terminates the lease-purchase agreement prior to the end of the 12 or 18 month renewal periods. As a result, property held for lease is classified as a current asset on the condensed consolidated balance sheets.

Property held for lease is recorded at cost, excluding shipping costs, and is carried at net book value. Depreciation for property held for lease is determined using the income forecasting method and is included within cost of revenue. The Company’s income forecasting method evaluates the patterns of the Company’s historical property held for lease portfolio to apply depreciation rates to the Company’s current property held for lease portfolio. Property held for lease is depreciated in the proportion of expected rents received to total expected rents to be received based on the Company’s historical data of lease performance. The utilization of rental merchandise occurs during periods of rental and coincides with the pattern of rental revenue receipts over the rental purchase agreement period. The Company also considers other qualitative factors, such as current and forecasted customer payment trends, and other risk-based factors as a component of its forecasting methodology.

The Company provides for impairment for the undepreciated balance of the property held for lease assuming no salvage value with a corresponding charge to cost of revenue. The provision for write-offs represents estimated losses based on historical results, which are incurred but not yet identified. Actual write-offs may differ from this estimate.

The Company applies its depreciation to property held for lease as follows: (1) typical depreciation based on historical patterns of customer payments when an item is leased for the full lease duration; (2) accelerated depreciation for impaired leases, based on historical patterns of lease impairment, and (3) accelerated depreciation for leases where an early purchase option (buyout) is exercised, based on historical patterns of lease buyouts.
The Company accelerates depreciation equal to the undepreciated net book value of property buyouts as buyouts occur with a corresponding charge to cost of revenue based on historical trends, such that the recorded amount closely approximates current actual buyouts during the period. The Company periodically evaluates fully depreciated property held for lease, net and when it is determined there is no future economic benefit, the cost of the assets are written off and the related accumulated depreciation is reversed.
There are uncertainties involved when recognizing expenses related to property held for lease due to the subjective nature of the income forecasting method and depreciation method, which could vary from actual results.

Other Revenue— Other revenue consists primarily of the sale of property held for lease (and lease agreements) to third parties and other immaterial sources of income from third party relationships. The sale of property held for lease is considered recurring and ordinary in nature to the Company’s business, and as such, these sales are accounted for within the scope of ASC 606, Revenue from Contracts with Customers. The payment terms require a fixed amount paid upfront by the third-party buyer based on a negotiated percentage of the collectible value of the unpaid balance of the delinquent leases being sold and is not subject to future adjustments or recourse provisions. Revenue from such sales is recognized at the point in time when control of the remaining unpaid delinquent lease balances and lease agreements are transferred to the third party buyer, which occurs upon execution of the sale agreement and receipt of consideration. Other revenue of $0.9 million and $0.9 million was recognized for the three months ended March 31, 2025 and 2024, respectively.

Concentration of Credit Risk— The Company’s concentration of credit risk consists primarily of cash. A portion of the Company’s cash balances exceed those that are federally insured. To date, the Company has not recognized any losses caused by uninsured balances.

Significant customers are those which represent more than 10% of the Company’s total revenue or gross accounts receivable balance at each balance sheet date. As of March 31, 2025 and 2024, the Company did not have any customers that accounted for 10% or more of total revenue during the three months ended March 31, 2025 and 2024. Customer leases originated through
the Company's largest merchant, Wayfair Inc., represented more than 10% of our total revenue for the three months ended March 31, 2025 and 2024.

Recent Accounting Pronouncements Not Yet Adopted— In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This update is effective for public entities for annual periods beginning after December 15, 2024 with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is evaluating the impact of this ASU.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies the date of adoption for ASU 2024-03. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting ASU 2024-03.
v3.25.1
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT
Property held for lease, net of accumulated depreciation and impairment consists of the following:
March 31,December 31,
20252024
Property held for lease$173,540 $300,603 
Less: accumulated depreciation and impairment(106,627)(233,518)
Property held for lease, net$66,913 $67,085 
The table below details the cost of revenue for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,
20252024
Depreciation expense for property held for lease over the lease term
$39,061 $33,760 
Depreciation for early lease purchase options (buyouts)9,664 7,613 
Depreciation for impaired leases6,632 5,636 
Other (1)
2,240 1,564 
Total cost of revenue$57,597 $48,573 
(1) Other consists mainly of payment processing fees, incentives and other lease related costs.
v3.25.1
ACCRUED LIABILITIES
 3 Months Ended
Mar. 31, 2025
Other Liabilities Disclosure [Abstract]  
ACCRUED LIABILITIES ACCRUED LIABILITIES
Accrued liabilities consists of the following:
March 31,December 31,
20252024
Bonus accrual$5,608 $4,205 
Sales tax payable8,116 8,608 
Unfunded lease payable2,911 2,447 
Interest payable157 248 
Other accrued liabilities2,153 1,864 
Total accrued liabilities$18,945 $17,372 
v3.25.1
DEBT & LIQUIDITY
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
DEBT & LIQUIDITY DEBT & LIQUIDITY
Debt

On May 14, 2019, Katapult SPV-1 LLC, as borrower (“Katapult SPV-1” or the “Borrower”), and Katapult Group, Inc. (f/k/a Cognical, Inc.) and the Company (as joined by certain Ninth Amendment and Joinder dated as of December 4, 2020) entered into a Credit Agreement with Midtown Madison Management, LLC as agent for various funds of Atalaya Capital Management (“Atalaya” and the “Lenders”, respectively), for a revolving line of credit (as amended, the “Credit Agreement” and the “RLOC”, respectively). As of September 30, 2024, Atalaya was acquired by Blue Owl Capital Inc (“Blue Owl”). The RLOC had a commitment of $125 million that the lenders had the right to increase to $250 million. Total outstanding principal under the RLOC was $77.8 million and $82.8 million as of March 31, 2025 and December 31, 2024, respectively.

In addition, in connection with a prior amendment to the Credit Agreement entered into on December 4, 2020, Atalaya also provided us with a senior secured term loan (the “Term Loan”) commitment of up to $50 million. We drew down the full $50 million of the Term Loan on December 4, 2020. The Term Loan bore interest at LIBOR plus 8.0% (with a 1% LIBOR floor) and an additional 3% interest per annum accrued to the principal balance as paid-in-kind (“PIK”) interest.

The Credit Agreement contains certain financial covenants, each as defined in the Credit Agreement, including Minimum Adjusted EBITDA levels, Minimum Tangible Net Worth, Minimum Liquidity and compliance with a Total Advance Rate. The Credit Agreement is also subject to certain negative and affirmative covenants. The negative covenants limit our ability to: incur additional indebtedness; pay dividends, redeem stock or make other distributions; amend our material agreements; make investments; create liens; transfer or sell the collateral under the Credit Agreement; make negative pledges; consolidate, merge, sell or otherwise dispose of all or substantially all of our assets; and enter into certain transactions with affiliates. Early repayments of certain amounts under the Term Loan are subject to prepayment penalties.
On March 6, 2023, the Company entered into the 15th amendment to the Credit Agreement (the “15th Amendment") with the Lenders. As part of the 15th Amendment, the maturity date of the RLOC and the Term Loan were extended from December 4, 2023 to June 4, 2025 and the commitments under the RLOC were reduced from $125 million to $75 million . The interest rate for PIK on the Term Loan is (A) if Liquidity (as defined in the 15th Amendment) greater than $25 million, 4.5% or (B) if Liquidity is less than $25 million, 6%. The spread on the RLOC was increased from 7.5% to 8.5%, while the spread on the Term Loan remained at 8.0%. Additionally, effective as of April 1, 2023, the benchmark rate for the RLOC and the Term Loan was changed from LIBOR to Secured Overnight Financing Rate (“SOFR”), subject in each case to a 3% floor plus applicable credit adjustment spread. which is fixed at 0.10%. As of March 31, 2025, the interest rates for the RLOC and Term Loan, were 12.9% and 18.4%, respectively, (which includes the 6.0% interest rate applicable to PIK with respect to the Term Loan).

In connection with the 15th Amendment, the Company repaid $25 million of outstanding principal amount of the Term Loan and issued a warrant to purchase up to 80,000 shares of its common stock at an exercise price of $0.25 per share, which vested on September 6, 2023. On December 5, 2023, the Company issued a warrant to purchase an additional 80,000 shares of its common stock at an exercise price of $0.25 per share which vested on March 5, 2024.

In addition, the 15th Amendment also updated certain financial covenants, including the Minimum Adjusted EBITDA levels, Minimum Tangible Net Worth, Minimum Liquidity and compliance with a Total Advance Rate.

On April 24, 2024, the Company entered into the 16th amendment to the Credit Agreement with the Lenders (the “16th Amendment”). Pursuant to such 16th Amendment, the Lenders granted the Company a waiver of all Specified Defaults (as defined in the 16th Amendment) related to the accounting errors that resulted in the restatement of the Company’s financial statements for all reporting periods prior to the date of the 16th Amendment. In addition, the 16th Amendment also updated certain financial covenants each as defined in the 16th Amendment, including Minimum Adjusted EBITDA (Trailing 3 Months), Minimum Adjusted EBITDA (YTD) and Minimum Tangible Net Worth.

On November 21, 2024, the Company entered into the 17th amendment to the Credit Agreement with the Lenders (the “17th Amendment”). Commitments under the RLOC were increased from $75 million to $90 million to primarily fund leases and general corporate needs. Additionally, the Lenders may, in its sole and absolute discretion, provide up to $10 million in Revolving Advances, in excess of the Revolving Loan Commitment, following a request from the Borrower and subject to the other terms and conditions set forth within the Credit Agreement.

On February 20, 2025, the Company entered into the 18th amendment to the Credit Agreement with the Lenders (“the 18th Amendment”), which updated certain financial covenants, including the Minimum Liquidity and Total Advance Rate, and
waived all Default or Event of Default (as each of these terms is defined in the 18th Amendment) under the Borrowing Base Certificate delivered prior to February 20, 2025.

On May 14, 2025, the Company entered into the 19th Amendment (as defined herein) pursuant to which the Lenders granted the Company a limited waiver through the existing maturity of the Credit Agreement of certain Existing Defaults (as defined in the 19th Amendment). See Note 12, Subsequent Events, for more information.

A reconciliation of the outstanding principal to the carrying amount of the RLOC is as follows:

March 31,December 31,
20252024
Principal balance$77,751 $82,758 
Less: Unamortized issuance costs(88)(176)
Total carrying amount$77,663 $82,582 

The issuance costs are amortized over the life of the RLOC and included in interest expense and other fees in the condensed consolidated statements of operations.

A reconciliation of the outstanding principal to the carrying amount of the Term Loan is as follows:

March 31,December 31,
20252024
Principal balance$25,000 $25,000 
PIK7,260 6,780 
Less: Unamortized debt discount and issuance costs(770)(1,733)
Total carrying amount$31,490 $30,047 
Amortization expense related to the Term Loan discount and issuance costs of $1.0 million and $0.7 million were recorded for the three months ended March 31, 2025 and 2024, respectively. Amortization of debt discount and issuance costs is included in interest expense and other fees in the condensed consolidated statements of operations.
The RLOC and Term Loan are also subject to certain customary representations, affirmative covenants, which consist of maintaining lease performance metrics, financial ratios related to operating results, and lease delinquency ratios, along with customary negative covenants.

As noted above, the RLOC and Term Loan maturity dates are June 4, 2025. Due to the maturity date being less than one year from the balance sheet dates of March 31, 2025 and December 31, 2024, debt is classified as a current liability in the condensed consolidated balance sheets as of March 31, 2025 and December 31, 2024.

Liquidity & Going Concern

The Company’s financing is generally comprised of cash from leases and borrowings from the RLOC, which is fully collateralized by the Company’s assets. As of May 12, 2025, the Company had a combined principal balance outstanding of approximately $113.3 million related to the RLOC and Term Loan, both of which mature within twelve months of the date that these financial statements are issued. Both loans were previously refinanced on March 6, 2023 to extend the maturity date from December 4, 2023 to June 4, 2025.

As of May 12, 2025, the Company had total cash on hand of $12.8 million, including $7.1 million million of unrestricted cash. The Company anticipates that it will not have sufficient cash available to repay the loans at maturity and is currently seeking to refinance the loans prior to maturity on June 4, 2025, which raises substantial doubt about the Company’s ability to continue as a going concern.

Management plans to address this uncertainty by refinancing the loans. No adjustments have been made to the carrying amounts of assets or liabilities, as the Company intends to refinance the loans prior to the maturity on June 4, 2025. However, there can be no assurance that the Company will be able to secure such financing prior to that date or at all.
v3.25.1
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
As of March 31, 2025, the Company has two stock incentive plans, the Cognical Holdings, Inc. 2014 Stock Incentive Plan, (the “2014 Plan”) and the Katapult Holdings, Inc. 2021 Stock Incentive Plan, (the “2021 Plan”).

2014 Plan

In accordance with the 2014 Plan, the board of directors of Legacy Katapult may grant equity awards to officers, employees, directors and consultants for common stock. The 2014 Plan has specific vesting for each stock option grant allowing vesting of the options over one to four years. No equity awards have been granted under the 2014 Plan since October 2020 and no new equity awards are expected to be granted under the 2014 Plan.
Stock Options
A summary of the status of the stock options under the 2014 Plan as of March 31, 2025, and changes during the three months then ended is presented below:
Number of
Shares		Weighted- Average
 Exercise Price		Weighted-Average
 Remaining
 Contractual Term
 (In Years)		Aggregate
Intrinsic Value
Balance - December 31, 2024256,689 $6.96 4.4$415 
Granted— — 
Exercised— — 
Forfeited— — 
Expired
— — 
Balance - March 31, 2025256,689 $6.96 4.1$1,129 
No stock options were exercised during either the three months ended March 31, 2025 or 2024.
2021 Plan

On June 9, 2021, the approved 2021 Plan became effective.

In accordance with the 2021 Plan, directors may issue equity awards, including restricted stock awards (“RSA”), restricted stock unit awards (“RSU”), performance share awards, performance share unit awards (“PSU”), stock appreciation rights and stock options to officers, employees, directors and consultants to purchase common stock. The Plan also allows for providing cash-based awards and other stock-based awards. The awards granted are subject to either service-based and/or performance-based vesting conditions. Restricted stock units (“RSUs”) are equity awards granted to employees that entitle the holder to shares of common stock when the awards vest. RSUs are measured based on the fair value of the Company’s common stock on the date of grant. Awards granted under the 2021 Plan generally vest over one to four years. As of March 31, 2025, the total number of common stock authorized for issuance under the 2021 Plan is 639,467.
The following table summarizes the Company’s RSA activity under the 2021 Plan during the three months ended March 31, 2025:

Stock Options
Restricted Stock Units
Number of OptionsWeighted- Average Exercise PriceWeighted-Average Remaining Contractual Term (In Years)Aggregate Intrinsic ValueSharesWeighted- Average Grant Date Fair Value
Balance - December 31, 202413,865 $261.25 6.5$— 264,812$22.83 
Granted — — 1,3309.36 
Exercised / Vested— — (62,313)27.69 
Forfeited— — (115)9.73 
Balance - March 31, 202513,865 $261.25 6.3$— 203,714$21.26 

Stock-Based Compensation Expense— Stock-based compensation expense of $1.1 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively. Stock-based compensation expense is included in operating expenses in the condensed consolidated statements of operations.

As of March 31, 2025, there was $3.5 million of unrecognized compensation costs. This amount is expected to be recognized over a weighted-average period of 1.4 years. The total fair value of vested RSUs as of their respective vesting dates were $0.7 million.
v3.25.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The income tax provision of $0.03 million and $0.01 million was recorded for the three months ended March 31, 2025 and 2024, respectively. The Company’s effective tax rate was (0.60%) and (0.95%) for the three months ended March 31, 2025 and 2024, respectively. The provision for the three months ended March 31, 2025 relates predominately to state income taxes for states that have net operating loss usage limitations. The Company’s effective tax rate for the three months ended March 31, 2025 and 2024 is different than the statutory rate primarily due to changes in the Company’s valuation allowance.

As of December 31, 2024, the Company had U.S. federal net operating loss carryforward of $124.8 million that expire at various dates from 2033 through 2037 and includes $102.2 million that have an unlimited carryforward period. As of December 31, 2024, the Company has U.S. state and local net operating loss carryforwards of $91.0 million that expire from 2025 to 2043.
In evaluating its ability to realize its net deferred tax assets, the Company considered all available positive and negative evidence, such as past operating results, forecasted earnings, prudent and feasible tax planning strategies, and the future realization of the tax benefits of existing temporary differences. The Company remains in a cumulative tax loss position for the 36 months ended March 31, 2025, and determined that it is more likely than not that its net deferred tax assets will not be realized. The Company continues to maintain a full valuation allowance as of March 31, 2025 and December 31, 2024.
v3.25.1
NET LOSS PER SHARE
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
NET LOSS PER SHARE NET LOSS PER SHARE
As discussed in Note 5, Debt & Liquidity, on March 6, 2023, in connection with the 15th Amendment, the Company issued a private warrant to purchase up to 80,000 shares of the Company common stock at an exercise price of $0.25 per share, which vested on September 6, 2023. On December 5, 2023, the Company issued a private warrant to purchase an additional 80,000 shares of our common stock at an exercise price of $0.25 per share which are vested. The warrants are considered exercisable for 160,000 shares for little to no consideration and the shares are therefore included in basic and diluted shares outstanding at their issuance date. In connection with the merger, 500,000 public warrants were originally issued in the initial public offering (“IPO”) and 13,300 private warrants were originally issued in a private placement in connection with the IPO. These warrants can be exercised up to five years after the merger.

The Company’s potentially dilutive securities, which include unvested RSUs, stock options to purchase common stock and warrants to purchase common stock, have been excluded from the computation of diluted net loss per share for certain periods, as the effect would be antidilutive. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share is the same in periods of a net loss. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:
Three Months Ended March 31,
20252024
Public warrants500,000 500,000 
Private warrants13,300 13,300 
Stock options270,554 336,270 
Unvested restricted stock units203,714 222,800 
Total common stock equivalents987,568 1,072,370 
v3.25.1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Litigation risk— From time to time, the Company may become involved in various legal actions. The Company is not currently aware of any indemnification or other claims, except as discussed below and has accrued liabilities related to such obligations in the condensed consolidated financial statements when estimable and probable, as of March 31, 2025 and December 31, 2024.
Except as set forth below, the Company and its subsidiaries are not a party to, and their properties are not the subject of, any known material pending legal proceedings.

DCA Litigation

On April 9, 2021, Daiwa Corporate Advisory LLC (“DCA”), filed a complaint in the Supreme Court of the State of New York, New York County. The complaint related to an April 11, 2018 letter agreement (the “Letter Agreement”) entered into by DCA and Legacy Katapult.

On October 7, 2024, the Company reached a settlement with DCA to resolve any and all disputes that exist between the two parties for total consideration of $3.0 million with half paid on October 11, 2024 and the remainder paid over the next two years. On October 14, 2024, the case was formally discontinued, with prejudice. On March 31, 2025, the Company made their next installment payment for $0.3 million. The Company recognized $0.8 million in estimated loss in accrued litigation settlement liability for the payments that are due within one year from March 31, 2025 and $0.5 million in other liabilities for the installment payments that are due after March 31, 2026 in its condensed consolidated balance sheet as of March 31, 2025.

Shareholder Litigation

On August 27, 2021, a putative class action lawsuit, captioned McIntosh v. Katapult Holdings, Inc., et al, was filed in the U.S. District Court for the Southern District of New York (the “New York Action”).
On August 25, 2022, a purported Company stockholder filed a putative class action lawsuit, captioned Saunders v. Einbinder, et al., against directors and officers of FinServ Acquisition Corp. (“FinServ”) and FinServ Holdings LLC in the Delaware Court of Chancery (the “Delaware Action”).

On May 20, 2024, the Company reached an agreement in principle to settle the New York Action and Delaware Action for total consideration of $12.0 million, comprised of: (1) a cash component of $8.5 million of which $5.0 million was paid by the insurer; and (2) an additional component of $3.5 million comprised of the Company’s common stock (the “Settlement Shares”) and/or cash. On July 3, 2024, the parties executed Stipulations of Settlement. In agreeing to settle, neither the Company nor any of the individual defendants made any admission of liability.

Pursuant to the settlement, on August 7, 2024, the Company paid $1.7 million into an escrow account for the Delaware plaintiffs. On October 10, 2024, the Delaware Court of Chancery approved the settlement of the Delaware Action, dismissing all claims asserted with prejudice. At that time, the Company determined the number of Settlement Shares for the Delaware Action (the “Delaware Settlement Shares”) is 275,845 shares which was calculated by dividing $2.8 million by the volume-weighted average per share price (“VWAP”) of the Company’s common stock for the 10 consecutive trading days immediately preceding the hearing held on October 10, 2024 for the final approval for the Delaware Action (the “Delaware Settlement Hearing VWAP”). 167,797 of the Delaware Settlement Shares were released to the Delaware plaintiffs on October 24, 2024. 108,048 of the Delaware Settlement Shares are considered the “Delaware Excess Settlement Shares.” The Company may either deliver the Delaware Excess Settlement Shares or pay in cash the full value of the Delaware Excess Settlement Shares, calculated by multiplying the number of Delaware Excess Settlement Shares by the Delaware Settlement Hearing VWAP. The Delaware Excess Settlement Shares or cash are due in two equal installments. On April 10, 2025, the Company delivered 54,024 shares to the Delaware plaintiffs, which represents one-half of the remaining Delaware Excess Settlement Shares and the second equal installment will be made on October 10, 2025.

Pursuant to the settlement, on August 20, 2024, the Company paid $1.8 million into an escrow account for the New York plaintiffs. On December 13, 2024, the District Court of the Southern District of New York approved the settlement of the New York Action, dismissing all claims asserted with prejudice. At that time, the Company determined the number of Settlement Shares for the New York Action (the “New York Settlement Shares”) is 103,424 shares which was calculated by dividing $0.8 million by the VWAP of the Company’s common stock for the ten (10) consecutive trading days immediately preceding the hearing held on December 13, 2024 for the final approval for the New York Action (the “New York Settlement Hearing VWAP”). 43,839 of the New York Settlement Shares were released to the New York plaintiffs on December 20, 2024. 59,585 of the New York Settlement Shares are considered the “New York Excess Settlement Shares.” The Company may either deliver the New York Excess Settlement Shares or pay in cash the full value of the New York Excess Settlement Shares, calculated by multiplying the number of New York Excess Settlement Shares by the New York Settlement Hearing VWAP. The New York Excess Settlement Shares or cash are due in two equal installments to be made on June 13, 2025 and December 13, 2025.

The Company recognized $1.45 million in estimated loss in accrued litigation settlement liability for the payments that are due within one year from March 31, 2025.

FlexShopper Litigation

On September 30, 2024, FlexShopper, Inc. (“FlexShopper”) filed a complaint against Katapult in the U.S. District Court for the Eastern District of Texas, Marshall Division. The complaint alleges patent infringement and seeks an injunction as well as damages for alleged lost profits and willfulness. On December 20, 2024, the Company filed a Motion to Dismiss all claims. The Company has not recorded any loss contingencies associated with this litigation as loss is not probable and the amount is not reasonably estimable as of March 31, 2025. The Company intends to vigorously defend this case.
v3.25.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The Company’s financial instruments consist of cash, accounts payable, accrued expenses, warrant liability, the RLOC, and the Term Loan. The Company believes that the carrying amounts of its financial instruments including cash, accounts payable and accrued expenses approximate their fair values due to the short-time maturities of these instruments. The condensed consolidated financial statements also include level 3 fair value measurements of private common stock warrants. The Company uses a third-party valuation firm to determine the fair value of certain of the Company's financial instruments.
RLOC and Term Loan
March 31, 2025December 31, 2024
Carrying amountFair valueCarrying amountFair value
RLOC$77,663 $77,964 $82,582 $84,422 
Term Loan31,490 32,659 30,047 33,151 
$109,153 $110,623 $112,629 $117,573 
The estimated fair values of the Company’s RLOC and Term Loan were determined using Level 2 inputs based on an estimated credit rating for the Company and the trading value of debt for similar debt instruments with similar credit ratings.

Warrant Liability
Warrant liability - Public (Level 1) & Private Warrants (Level 3)
Fair Value Measurement Using
Level 1Level 2Level 3Total
Balance at December 31, 2024
$76 $— $2 $78 
Change in fair value
35 — 1 36 
Balance at March 31, 2025
$111 $— $3 $114 

During the three months ended March 31, 2025 and 2024, there were no transfers between Level 1 and Level 2, nor into or out of Level 3.
v3.25.1
SEGMENT REPORTING
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
The Company is a U.S. domiciled business, with operations in 46 states and the District of Columbia, providing lease payment options to consumers to obtain durable goods from omnichannel and e-commerce partners. The Company has one business activity and there are no segment managers who are held accountable for operations, operating results and plans for components below the consolidated unit level. Accordingly, the Company has one operating segment, and therefore, one reportable segment. The accounting policies for this segment are the same as those described in the summary of significant accounting policies and the measure of segment assets is reported on the condensed consolidated balance sheet as total assets. There have been no changes in the Company’s organizational structure or reporting practices during the three months ended March 31, 2025

The Company’s chief operating decision maker (“CODM”) is the chief executive officer, Orlando Zayas. The CODM manages the business activities on a consolidated basis and measures the profitability of the Company's single reporting segment using net loss, a measure that is also reported in the Condensed Consolidated Statement of Operations. Net loss is used by the CODM to evaluate results and is considered in determining capital allocation. The CODM considers net loss to evaluate the performance of assets in deciding where to invest into the business, such as in areas such as technology, resources, or other growth initiatives. Net loss is also used to monitor budget versus actual results.

The significant segment expenses reviewed by the CODM include cost of revenue, interest expense on the RLOC and term loan, and other operating expenses. Cost of revenue is primarily comprised of depreciation expense on property held for lease, including impairment expense and accelerated depreciation on early lease-purchase options (buyouts) and other variable expenses such as call center fees. Operating expenses include general and administrative expenses, underwriting, processing fees, stock compensation and other depreciation. There are no other segment items.

Revenues from external customers, cost of revenue, interest income, and income tax expense/benefit can be found in the Condensed Consolidated Statements of Operations. Accumulated depreciation and impairment in included in Note 3, Property Held for Lease, Net of Accumulated Depreciation and Impairment. Significant noncash items other than depreciation and amortization expense are included in the Condensed Consolidated Statement of Cash Flows. Interest expense was $5.1 million and $4.5 million for the during the three months ended March 31, 2025 and 2024, respectively.
v3.25.1
SUBSEQUENT EVENTS
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
The Company evaluated subsequent events through the date the condensed consolidated financial statements were issued, for events requiring adjustment to or disclosure in these condensed consolidated financial statements. Except as discussed below, there are no events that require adjustment to or disclosure in these condensed consolidated financial statements.

In connection with the shareholder litigation settlement, on April 10, 2025, the Company delivered 54,024 shares to the Delaware plaintiffs, which represents one-half of the remaining Delaware Excess Settlement Shares.
On May 14, 2025, the Company entered into the Limited Waiver and Amendment Agreement to the Credit Agreement (the “19th Amendment”). Pursuant to such 19th Amendment, the Lenders granted the Company a limited waiver through June 4, 2025, the existing maturity of the Credit Agreement of certain Existing Defaults including related to (i) Liquidity, the Total Advance Rate and Tangible Net Worth (each as defined in the Credit Agreement) not meeting applicable thresholds required by the Credit Agreement, (ii) “going concern” qualifications or opinions included in the auditor's report accompanying the Company's audited financial statements for the fiscal year ended December 31, 2024, and (iii) certain technical reporting requirements with respect to our Borrowing Base Certificates (as defined in the Credit Agreement) (the “Waiver”). The Company is actively working with the Lenders on a comprehensive maturity extension amendment to Credit Agreement that adjusts the covenants and advance rate to align with the Company's business plan. The Company is working diligently to conclude those negotiations as soon as possible. As part of this ongoing negotiation, the Company may determine it has other breaches, which have not yet been waived through the Waiver.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net loss $ (5,688) $ (570)
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2025
Accounting Policies [Abstract]  
Subsidiaries
Subsidiaries— The condensed consolidated financial statements of Katapult include the accounts of the Company and its wholly owned subsidiaries Katapult Intermediate Holdings LLC (formerly known as Keys Merger Sub 2, LLC), a Delaware limited liability company formed in December 2020, Katapult Group, Inc. (formerly known as Cognical, Inc.), a Delaware corporation incorporated in March 2012, Katapult SPV-1 LLC, a Delaware limited liability company formed in 2019, and Katapult SPV-2 LLC, a Delaware limited liability company formed in 2025. Legacy Katapult was incorporated in the state of Delaware in 2016. Katapult Group originates all of the Company's lease agreements with customers.
The condensed consolidated financial statements include the accounts of Katapult Holdings, Inc. and its wholly owned subsidiaries. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair presentation have been included in these condensed consolidated financial statements. All intercompany balances and transactions have been eliminated in consolidation.
Basis of Presentation Basis of Presentation— The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”).
Use of Estimates
Use of Estimates— The preparation of the condensed consolidated financial statements in accordance with U.S. 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 condensed consolidated financial statements, and the reported amounts of income and expense during the reporting periods. The most significant estimates relate to property held for lease and the related depreciation method, impairments, and the valuation allowance associated with deferred tax assets. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other risk-based factors. Changes in estimates are reflected in reported amounts in the period in which they become known. Actual results could differ from those estimates.
Rental Revenue
Rental Revenue— Lease-purchase agreements, which comprise the majority of total revenue, fall within the scope of ASC 842, Leases under lessor accounting and revenue is recognized in the period it is earned and cash is collected. Property held for lease is leased to customers pursuant to lease-purchase agreements with an initial term: typically one week, two weeks, or one month, with non-refundable lease payments. Generally, the customer has the right to acquire title either through a 90-day promotional pricing option, an early lease-purchase option (buyout), or by completing all lease renewal payments, generally over 12 or 18 months. On any current lease, customers have the option to terminate the agreement at any time without penalty in accordance with the lease term. Amounts received from customers who elect early lease-purchase options (buyouts) are included in rental revenue. Lease payments received prior to their due dates are deferred and recorded as unearned revenue and are recognized as rental revenue in the period in which the revenue is earned. Services are considered to be rendered and revenue earned over the lease term. Rental revenue also includes an initial agreed-upon amount for executing customer lease-purchase agreements. Payments are received upon submission of the applications and execution of the lease-purchase agreements.
Revenues from leases that originated from merchants are generally recorded net of sales taxes as sales tax is collected from each customer's lease payment and a sales tax payable is recorded for remittance to the respective state. Revenue is recognized for leases in the period it is earned and cash is collected. For Katapult Pay transactions, all sales tax is paid by the Company upon purchase of the goods and is recorded in the cost basis of the capitalized property held for lease.
Property Held for Lease, Net of Accumulated Depreciation and Impairment
Property Held for Lease, Net of Accumulated Depreciation and Impairment— Property held for lease consists of furniture, mattresses, customer electronics, appliances, and other durable goods offered for lease-purchase in the normal course of business. Such property is provided to customers pursuant to a lease-purchase agreement with a minimum lease term; typically one week, two weeks, or one month. The renewal periods of the initial lease term of the agreement are typically 12 or 18 months. Customers may terminate a lease agreement at any time without penalty. The average customer continues to lease the property for approximately 8 months because the customer either exercises the early lease-purchase option (buyout) or terminates the lease-purchase agreement prior to the end of the 12 or 18 month renewal periods. As a result, property held for lease is classified as a current asset on the condensed consolidated balance sheets.

Property held for lease is recorded at cost, excluding shipping costs, and is carried at net book value. Depreciation for property held for lease is determined using the income forecasting method and is included within cost of revenue. The Company’s income forecasting method evaluates the patterns of the Company’s historical property held for lease portfolio to apply depreciation rates to the Company’s current property held for lease portfolio. Property held for lease is depreciated in the proportion of expected rents received to total expected rents to be received based on the Company’s historical data of lease performance. The utilization of rental merchandise occurs during periods of rental and coincides with the pattern of rental revenue receipts over the rental purchase agreement period. The Company also considers other qualitative factors, such as current and forecasted customer payment trends, and other risk-based factors as a component of its forecasting methodology.

The Company provides for impairment for the undepreciated balance of the property held for lease assuming no salvage value with a corresponding charge to cost of revenue. The provision for write-offs represents estimated losses based on historical results, which are incurred but not yet identified. Actual write-offs may differ from this estimate.

The Company applies its depreciation to property held for lease as follows: (1) typical depreciation based on historical patterns of customer payments when an item is leased for the full lease duration; (2) accelerated depreciation for impaired leases, based on historical patterns of lease impairment, and (3) accelerated depreciation for leases where an early purchase option (buyout) is exercised, based on historical patterns of lease buyouts.
The Company accelerates depreciation equal to the undepreciated net book value of property buyouts as buyouts occur with a corresponding charge to cost of revenue based on historical trends, such that the recorded amount closely approximates current actual buyouts during the period. The Company periodically evaluates fully depreciated property held for lease, net and when it is determined there is no future economic benefit, the cost of the assets are written off and the related accumulated depreciation is reversed.
There are uncertainties involved when recognizing expenses related to property held for lease due to the subjective nature of the income forecasting method and depreciation method, which could vary from actual results.
Other Revenue Other Revenue— Other revenue consists primarily of the sale of property held for lease (and lease agreements) to third parties and other immaterial sources of income from third party relationships. The sale of property held for lease is considered recurring and ordinary in nature to the Company’s business, and as such, these sales are accounted for within the scope of ASC 606, Revenue from Contracts with Customers. The payment terms require a fixed amount paid upfront by the third-party buyer based on a negotiated percentage of the collectible value of the unpaid balance of the delinquent leases being sold and is not subject to future adjustments or recourse provisions. Revenue from such sales is recognized at the point in time when control of the remaining unpaid delinquent lease balances and lease agreements are transferred to the third party buyer, which occurs upon execution of the sale agreement and receipt of consideration.
Concentrations of Credit Risk
Concentration of Credit Risk— The Company’s concentration of credit risk consists primarily of cash. A portion of the Company’s cash balances exceed those that are federally insured. To date, the Company has not recognized any losses caused by uninsured balances.
Recent Accounting Pronouncements Not Yet Adopted
Recent Accounting Pronouncements Not Yet Adopted— In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This ASU will improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. This update is effective for public entities for annual periods beginning after December 15, 2024 with early adoption permitted for annual financial statements that have not yet been issued or made available for issuance. The Company is evaluating the impact of this ASU.
In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarifies the date of adoption for ASU 2024-03. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is evaluating the impact of adopting ASU 2024-03.
Fair Value Measurements The Company’s financial instruments consist of cash, accounts payable, accrued expenses, warrant liability, the RLOC, and the Term Loan. The Company believes that the carrying amounts of its financial instruments including cash, accounts payable and accrued expenses approximate their fair values due to the short-time maturities of these instruments. The condensed consolidated financial statements also include level 3 fair value measurements of private common stock warrants. The Company uses a third-party valuation firm to determine the fair value of certain of the Company's financial instruments.
v3.25.1
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT (Tables)
 3 Months Ended
Mar. 31, 2025
Leases [Abstract]  
Summary of Property Held for Lease, Net
Property held for lease, net of accumulated depreciation and impairment consists of the following:
March 31,December 31,
20252024
Property held for lease$173,540 $300,603 
Less: accumulated depreciation and impairment(106,627)(233,518)
Property held for lease, net$66,913 $67,085 
Summary of Cost of Revenue
The table below details the cost of revenue for the three months ended March 31, 2025 and 2024:

Three Months Ended March 31,
20252024
Depreciation expense for property held for lease over the lease term
$39,061 $33,760 
Depreciation for early lease purchase options (buyouts)9,664 7,613 
Depreciation for impaired leases6,632 5,636 
Other (1)
2,240 1,564 
Total cost of revenue$57,597 $48,573 
(1) Other consists mainly of payment processing fees, incentives and other lease related costs.
v3.25.1
ACCRUED LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2025
Other Liabilities Disclosure [Abstract]  
Summary of Accrued Liabilities
Accrued liabilities consists of the following:
March 31,December 31,
20252024
Bonus accrual$5,608 $4,205 
Sales tax payable8,116 8,608 
Unfunded lease payable2,911 2,447 
Interest payable157 248 
Other accrued liabilities2,153 1,864 
Total accrued liabilities$18,945 $17,372 
v3.25.1
DEBT & LIQUIDITY (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Summary of Long-term Debt
A reconciliation of the outstanding principal to the carrying amount of the RLOC is as follows:

March 31,December 31,
20252024
Principal balance$77,751 $82,758 
Less: Unamortized issuance costs(88)(176)
Total carrying amount$77,663 $82,582 
A reconciliation of the outstanding principal to the carrying amount of the Term Loan is as follows:

March 31,December 31,
20252024
Principal balance$25,000 $25,000 
PIK7,260 6,780 
Less: Unamortized debt discount and issuance costs(770)(1,733)
Total carrying amount$31,490 $30,047 
v3.25.1
STOCK-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock Options
A summary of the status of the stock options under the 2014 Plan as of March 31, 2025, and changes during the three months then ended is presented below:
Number of
Shares		Weighted- Average
 Exercise Price		Weighted-Average
 Remaining
 Contractual Term
 (In Years)		Aggregate
Intrinsic Value
Balance - December 31, 2024256,689 $6.96 4.4$415 
Granted— — 
Exercised— — 
Forfeited— — 
Expired
— — 
Balance - March 31, 2025256,689 $6.96 4.1$1,129 
The following table summarizes the Company’s RSA activity under the 2021 Plan during the three months ended March 31, 2025:

Stock Options
Restricted Stock Units
Number of OptionsWeighted- Average Exercise PriceWeighted-Average Remaining Contractual Term (In Years)Aggregate Intrinsic ValueSharesWeighted- Average Grant Date Fair Value
Balance - December 31, 202413,865 $261.25 6.5$— 264,812$22.83 
Granted — — 1,3309.36 
Exercised / Vested— — (62,313)27.69 
Forfeited— — (115)9.73 
Balance - March 31, 202513,865 $261.25 6.3$— 203,714$21.26 
Summary of RSUs
The following table summarizes the Company’s RSA activity under the 2021 Plan during the three months ended March 31, 2025:

Stock Options
Restricted Stock Units
Number of OptionsWeighted- Average Exercise PriceWeighted-Average Remaining Contractual Term (In Years)Aggregate Intrinsic ValueSharesWeighted- Average Grant Date Fair Value
Balance - December 31, 202413,865 $261.25 6.5$— 264,812$22.83 
Granted — — 1,3309.36 
Exercised / Vested— — (62,313)27.69 
Forfeited— — (115)9.73 
Balance - March 31, 202513,865 $261.25 6.3$— 203,714$21.26 
v3.25.1
NET LOSS PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Summary of Antidilutive Securities The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:
Three Months Ended March 31,
20252024
Public warrants500,000 500,000 
Private warrants13,300 13,300 
Stock options270,554 336,270 
Unvested restricted stock units203,714 222,800 
Total common stock equivalents987,568 1,072,370 
v3.25.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of Fair Values
RLOC and Term Loan
March 31, 2025December 31, 2024
Carrying amountFair valueCarrying amountFair value
RLOC$77,663 $77,964 $82,582 $84,422 
Term Loan31,490 32,659 30,047 33,151 
$109,153 $110,623 $112,629 $117,573 
Summary of Warrant Liability Activity
Warrant Liability
Warrant liability - Public (Level 1) & Private Warrants (Level 3)
Fair Value Measurement Using
Level 1Level 2Level 3Total
Balance at December 31, 2024
$76 $— $2 $78 
Change in fair value
35 — 1 36 
Balance at March 31, 2025
$111 $— $3 $114 
v3.25.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Product Information [Line Items]    
Promotional period for pricing option (buyout) 90 days  
Other revenue $ 868 $ 919
Wayfair Inc | Revenue Benchmark | Customer Concentration Risk    
Product Information [Line Items]    
Concentration risk, percentage 10.00% 10.00%
Twelve Month Renewal Period    
Product Information [Line Items]    
Lessee, operating lease, renewal term 12 months  
Eighteen Month Renewal Period    
Product Information [Line Items]    
Lessee, operating lease, renewal term 18 months  
One week    
Product Information [Line Items]    
Term of contract 7 days  
Two weeks    
Product Information [Line Items]    
Term of contract 14 days  
One Month    
Product Information [Line Items]    
Term of contract 1 month  
Twelve Months    
Product Information [Line Items]    
Renewal term 12 months  
Eighteen Months    
Product Information [Line Items]    
Renewal term 18 months  
Seven Months    
Product Information [Line Items]    
Renewal term 8 months  
v3.25.1
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT - Summary of Property Held for Lease, Net (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Leases [Abstract]    
Property held for lease $ 173,540 $ 300,603
Less: accumulated depreciation and impairment (106,627) (233,518)
Property held for lease, net $ 66,913 $ 67,085
v3.25.1
PROPERTY HELD FOR LEASE, NET OF ACCUMULATED DEPRECIATION AND IMPAIRMENT - Summary of Cost of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Leases [Abstract]    
Depreciation expense for property held for lease over the lease term $ 39,061 $ 33,760
Depreciation for early lease purchase options (buyouts) 9,664 7,613
Depreciation for impaired leases 6,632 5,636
Other 2,240 1,564
Cost of revenue $ 57,597 $ 48,573
v3.25.1
ACCRUED LIABILITIES (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Other Liabilities Disclosure [Abstract]    
Bonus accrual $ 5,608 $ 4,205
Sales tax payable 8,116 8,608
Unfunded lease payable 2,911 2,447
Interest payable 157 248
Other accrued liabilities 2,153 1,864
Total accrued liabilities $ 18,945 $ 17,372
v3.25.1
DEBT & LIQUIDITY - Narrative (Details) - USD ($)
 3 Months Ended
Apr. 01, 2023
Mar. 06, 2023
Mar. 05, 2023
Dec. 04, 2020
Mar. 31, 2025
Mar. 31, 2024
May 12, 2025
Dec. 31, 2024
Nov. 21, 2024
Sep. 30, 2024
Dec. 05, 2023
Line of Credit Facility [Line Items]                      
Proceeds from revolving line of credit         $ 5,128,000 $ 10,058,000          
Cash and cash equivalents         5,965,000     $ 3,465,000      
Subsequent Event                      
Line of Credit Facility [Line Items]                      
Total carrying amount             $ 113,300,000        
Cash and cash equivalents             12,800,000        
Unrestricted cash             $ 7,100,000        
Senior Secured Term Loan Facility Commitment | Line of Credit                      
Line of Credit Facility [Line Items]                      
Paid-in-kind interest rate if liquidity is less than $25000   6.00%                  
Senior Secured Term Loan Facility Commitment | Line of Credit | Term Loan Warrants Issued March 2023                      
Line of Credit Facility [Line Items]                      
Number of shares called by warrants (in shares)   80,000                  
Exercise price (in dollars per share)   $ 0.25                  
Senior Secured Term Loan Facility Commitment | Line of Credit | Term Loan Warrants Issued December2023                      
Line of Credit Facility [Line Items]                      
Number of shares called by warrants (in shares)                     80,000
Exercise price (in dollars per share)                     $ 0.25
RLOC                      
Line of Credit Facility [Line Items]                      
Line of credit, principal amount         $ 77,800,000     82,800,000      
RLOC | First Revolving Line Of Credit | Line of Credit                      
Line of Credit Facility [Line Items]                      
Line of credit, principal amount   $ 75,000,000 $ 125,000,000           $ 90,000,000 $ 250,000,000  
Basis spread on variable rate 0.10% 8.50% 7.50%                
Annual interest rate         12.90%            
Uncommitted amount                 $ 10,000,000    
RLOC | First Revolving Line Of Credit | Line of Credit | Minimum                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate 3.00%                    
Term Loan | The Credit Facility | Line of Credit                      
Line of Credit Facility [Line Items]                      
Line of credit, principal amount       $ 50,000,000              
Proceeds from revolving line of credit       $ 50,000,000              
Basis spread on variable rate       8.00%              
Floor rate on variable rate       1.00%              
Paid-in-kind interest rate if liquidity is less than $25000       3.00%              
Term Loan | Senior Secured Term Loan Facility Commitment | Line of Credit                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate 0.10% 8.00%                  
Paid-in-kind interest rate if liquidity is less than $25000   6.00%                  
Paid-in-kind interest liquidity trigger amount   $ 25,000,000                  
Paid-in-kind interest rate   4.50%                  
Interest rate         18.40%            
Principal repayment on term loan   $ 25,000,000                  
Amortization expense         $ 1,000,000.0 $ 700,000          
Total carrying amount         $ 31,490,000     $ 30,047,000      
Term Loan | Senior Secured Term Loan Facility Commitment | Line of Credit | Minimum                      
Line of Credit Facility [Line Items]                      
Basis spread on variable rate 3.00%                    
v3.25.1
DEBT & LIQUIDITY - Summary of Borrowings Outstanding of RLOC (Details) - RLOC - First Revolving Line Of Credit - Line of Credit - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Principal balance $ 77,751 $ 82,758
Less: Unamortized issuance costs (88) (176)
Total carrying amount $ 77,663 $ 82,582
v3.25.1
DEBT & LIQUIDITY - Summary of Borrowings Outstanding of Term Loan (Details) - Line of Credit - Senior Secured Term Loan Facility Commitment - Term Loan - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Principal balance $ 25,000 $ 25,000
PIK 7,260 6,780
Less: Unamortized debt discount and issuance costs (770) (1,733)
Total carrying amount $ 31,490 $ 30,047
v3.25.1
STOCK-BASED COMPENSATION - Narrative (Details)
$ in Millions
 3 Months Ended 54 Months Ended
Mar. 31, 2025
USD ($)
plan
shares
Mar. 31, 2024
USD ($)
shares
Mar. 31, 2025
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of plans | plan 2    
Stock-based compensation expense | $ $ 1.1 $ 1.4  
Restricted shares      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
RSU compensation cost not yet recognized | $ $ 3.5   $ 3.5
Compensation cost not yet recognized, period of recognition 1 year 4 months 24 days    
Fair value of vested RSUs | $ $ 0.7    
2014 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options granted (in shares) 0    
Stock options exercised (in shares) 0 0  
2014 Plan | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options granted (in shares)     0
2014 Plan | Minimum | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 1 year    
2014 Plan | Maximum | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 4 years    
2021 Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Stock options granted (in shares) 0    
Stock options exercised (in shares) 0    
2021 Plan | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Common stock authorized for issuance (in shares) 639,467   639,467
2021 Plan | Minimum | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 1 year    
2021 Plan | Maximum | Stock options      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period 4 years    
v3.25.1
STOCK-BASED COMPENSATION - 2014 Plan (Details) - 2014 Plan - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Number of Shares      
Beginning balance (in shares) 256,689    
Granted (in shares) 0    
Exercised (in shares) 0 0  
Forfeited (in shares) 0    
Expired ( in shares) 0    
Ending balance (in shares) 256,689   256,689
Weighted- Average Exercise Price      
Beginning balance (in dollars per share) $ 6.96    
Granted (in dollars per share) 0    
Exercised (in dollars per share) 0    
Forfeited (in dollars per share) 0    
Expired (in dollars per share) 0    
Ending balance (in dollars per share) $ 6.96   $ 6.96
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value      
Options outstanding, weighted-average remaining contractual term 4 years 1 month 6 days   4 years 4 months 24 days
Options outstanding, aggregate intrinsic value $ 1,129   $ 415
v3.25.1
STOCK-BASED COMPENSATION - 2021 Plan (Details) - 2021 Plan
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2025
USD ($)
$ / shares
shares
Dec. 31, 2024
USD ($)
$ / shares
shares
Stock Option - Shares    
Beginning balance (in shares) | shares 13,865  
Granted (in shares) | shares 0  
Exercised / Vested (in shares) | shares 0  
Forfeited (in shares) | shares 0  
Ending balance (in shares) | shares 13,865 13,865
Stock Options - Weighted-Average Exercise Price    
Beginning balance (in dollars per share) | $ / shares $ 261.25  
Granted (in dollars per share) | $ / shares 0  
Exercised / Vested (in dollars per share) | $ / shares 0  
Forfeited (in dollars per share) | $ / shares 0  
Ending balance (in dollars per share) | $ / shares $ 261.25 $ 261.25
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value    
Options outstanding, weighted-average remaining contractual term 6 years 3 months 18 days 6 years 6 months
Options outstanding, aggregate intrinsic value | $ $ 0 $ 0
Unvested restricted stock units    
Restricted Stock Units - Shares    
Outstanding, beginning balance (in shares) | shares 264,812  
Granted (in shares) | shares 1,330  
Exercised / Vested (in shares) | shares (62,313)  
Forfeited (in shares) | shares (115)  
Outstanding, ending balance (in shares) | shares 203,714 264,812
Restricted Stock Units - Weighted- Average Grant Date Fair Value    
Outstanding, beginning balance (in dollars per share) | $ / shares $ 22.83  
Granted (in dollars per share) | $ / shares 9.36  
Exercised / Vested (in dollars per share) | $ / shares 27.69  
Forfeited (in dollars per share) | $ / shares 9.73  
Outstanding, ending balance (in dollars per share) | $ / shares $ 21.26 $ 22.83
v3.25.1
INCOME TAXES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Operating Loss Carryforwards [Line Items]      
Provision (benefit) for income taxes $ 29 $ 5  
Effective tax rate (0.60%) (0.95%)  
Federal      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforward     $ 124,800
Operating loss carryforwards not subject to expiration     102,200
State and local      
Operating Loss Carryforwards [Line Items]      
Operating loss carryforward     $ 91,000
v3.25.1
NET LOSS PER SHARE - Narrative (Details) - $ / shares
Dec. 05, 2023
Mar. 06, 2023
Class of Warrant or Right [Line Items]    
Warrant term (in years)   5 years
Senior Secured Term Loan Facility Commitment | Senior Loans    
Class of Warrant or Right [Line Items]    
Number of shares called by warrants (in shares)   160,000
Term Loan Warrants Issued March 2023 | Senior Secured Term Loan Facility Commitment | Senior Loans    
Class of Warrant or Right [Line Items]    
Exercise price (in dollars per share)   $ 0.25
Term Loan Warrants Issued December2023 | Senior Secured Term Loan Facility Commitment | Senior Loans    
Class of Warrant or Right [Line Items]    
Number of shares called by warrants (in shares) 80,000  
Exercise price (in dollars per share) $ 0.25  
Public Warrants    
Class of Warrant or Right [Line Items]    
Warrants (in shares)   500,000
Private Warrants    
Class of Warrant or Right [Line Items]    
Warrants (in shares)   13,300
v3.25.1
NET LOSS PER SHARE - Summary of Antidilutive Securities (Details) - shares
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 987,568 1,072,370
Public warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 500,000 500,000
Private warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 13,300 13,300
Stock options    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 270,554 336,270
Unvested restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities (in shares) 203,714 222,800
v3.25.1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Thousands
Mar. 31, 2025
USD ($)
Dec. 13, 2024
USD ($)
Installment
day
shares
Oct. 10, 2024
USD ($)
Installment
day
shares
Oct. 07, 2024
USD ($)
May 20, 2024
USD ($)
Apr. 10, 2025
shares
Dec. 20, 2024
shares
Oct. 24, 2024
shares
Aug. 20, 2024
USD ($)
Aug. 07, 2024
USD ($)
Loss Contingencies [Line Items]                    
Total consideration       $ 3,000 $ 12,000          
Installment period       2 years            
Payments for legal settlements $ 300                  
Cash component         8,500          
Payments for legal settlements, by insurer         5,000          
Additional component         $ 3,500          
Daiwa Corporate Advisory, LLC                    
Loss Contingencies [Line Items]                    
Accrued litigation settlement liability, current 800                  
Accrued litigation settlement liability, noncurrent 500                  
Delaware Action                    
Loss Contingencies [Line Items]                    
Additional component     $ 2,800              
Payments for legal settlement, escrow deposit                   $ 1,700
Litigation settlement, shares issuable | shares     275,845              
Number of consecutive trading days | day     10              
Maximum extend of settlement shares (in shares) | shares     108,048         167,797    
Number of installments | Installment     2              
Delaware Action | Subsequent Event                    
Loss Contingencies [Line Items]                    
Litigation settlement, shares issuable | shares           54,024        
New York Action                    
Loss Contingencies [Line Items]                    
Additional component   $ 800                
Litigation settlement, shares issuable | shares   103,424                
Number of consecutive trading days | day   10                
Maximum extend of settlement shares (in shares) | shares   59,585         43,839      
Number of installments | Installment   2                
Litigation settlement, escrow deposit                 $ 1,800  
Shareholder Litigation                    
Loss Contingencies [Line Items]                    
Accrued litigation settlement liability, current $ 1,450                  
v3.25.1
FAIR VALUE MEASUREMENTS - Summary of Fair Values (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Carrying amount    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt $ 109,153 $ 112,629
Carrying amount | RLOC    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt fair value 77,663 82,582
Carrying amount | Term Loan    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt fair value 31,490 30,047
Fair value | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt 110,623 117,573
Fair value | RLOC | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt fair value 77,964 84,422
Fair value | Term Loan | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Debt fair value $ 32,659 $ 33,151
v3.25.1
FAIR VALUE MEASUREMENTS - Summary of Warrant Liability Activity (Details) - Fair Value, Recurring - Warrant Liability
$ in Thousands
 3 Months Ended
Mar. 31, 2025
USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Beginning balance $ 78
Change in fair value 36
Ending balance 114
Level 1  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Beginning balance 76
Change in fair value 35
Ending balance 111
Level 2  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Beginning balance 0
Change in fair value 0
Ending balance 0
Level 3  
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]  
Beginning balance 2
Change in fair value 1
Ending balance $ 3
v3.25.1
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
USD ($)
business_activity
segment
state
Mar. 31, 2024
USD ($)
Segment Reporting [Abstract]    
Number of states | state 46  
Number of business activity | business_activity 1  
Number of operating segments 1  
Number of reportable segments 1  
Interest expense and other fees | $ $ 5,144 $ 4,527
v3.25.1
SUBSEQUENT EVENTS (Details) - Delaware Action - shares
Apr. 10, 2025
Oct. 10, 2024
Subsequent Event [Line Items]    
Litigation settlement, shares issuable (in shares)   275,845
Subsequent Event    
Subsequent Event [Line Items]    
Litigation settlement, shares issuable (in shares) 54,024