| Delaware | 7389 | 88-3590180 | ||||||
| (State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) | ||||||
| Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
☒ | Smaller reporting company | ☒ | ||||||||||||
Emerging growth company | ☒ | |||||||||||||

| Page | |||||
| Issuance of Common Stock | |||||
| Shares of common stock offered by us | 16,395,564 shares of common stock, consisting of (i) 3,895,564 shares of common stock that are issuable upon exercise of the Private Placement Warrants and (ii) 12,500,000 shares of common stock that are issuable upon exercise upon the exercise of the Public Warrants. The shares of common stock being registered for resale in this prospectus represent a substantial portion of our public float and of our outstanding shares of common stock. In addition, institutional investors, comprised of entities having beneficial ownership of more than 5% of our stock, collectively own over 50% of the total outstanding shares of common stock; these holders will have the ability to sell all of their shares pursuant to the registration statement of which this prospectus forms a part for so long as it is available for use. The market price of shares of our common stock could decline if there are substantial sales of our common stock by our selling securityholders or if there is perception in the market that holders of a large number of shareholders intend to sell their shares. The sale of the securities being registered in this prospectus therefore could result in a significant decline in the public trading price of our common stock. Sales of a number of shares of our common stock in the public market could occur at any time. | ||||
| Shares of common stock outstanding prior to the exercise of the Warrants | 37,483,602 (as of May 2, 2023). | ||||
| Shares of common stock outstanding assuming exercise of the Warrants | 53,879,166 (based on the total shares outstanding as of May 2, 2023). | ||||
| Exercise price of the Public and Private Placement Warrants | $11.50 per share, subject to adjustment as described herein, which exceeds the market price of our common stock of $2.24 per share based on the closing price on the Nasdaq on May 2, 2023. If all of our warrants were exercised in full for cash, we would receive an aggregate of approximately $188.5 million. For so long as the warrants remain out-of-the-money, we believe it is unlikely that the warrantholders will exercise their warrants and therefore, we do not expect to receive cash proceeds from any such exercise. There can be no assurance that the warrants will ever be in-the-money prior to their expiration in 2027 and as such, the warrants may expire worthless. | ||||
| Use of proceeds | We will receive up to an aggregate of approximately $188.5 million assuming the exercise in full of all warrants for cash. We expect to use the net proceeds from the exercise of the warrants for general corporate purposes, including to fund potential future investments and acquisitions of companies that we believe are complementary to our business and consistent with our growth strategy. We will have broad discretion over the use of proceeds from the exercise of the warrants. There is no assurance that the holders of the warrants will elect to exercise any or all such warrants. To the extent that the warrants are exercised on a “cashless basis,” the amount of cash we would receive from the exercise of the warrants will decrease. See “Use of Proceeds.” | ||||
| Resale of Common Stock and Warrants | |||||
| Shares of common stock offered by the selling securityholders | We are registering the resale by the selling securityholders named in this prospectus, or their permitted transferees, in the aggregate of 13,505,461 shares of common stock, consisting of: ▪up to 440,135 PIPE and Backstop Shares; ▪up to 3,895,564 shares of common stock issuable upon the exercise of the Private Placement Warrants; ▪up to 72,434 shares of common stock issuable upon the net exercise of the Wag! Common Warrants; ▪up to 2,930,833 shares of common stock (including shares issuable upon exercise of convertible securities) pursuant to the Registration Rights Agreement; and ▪up to 6,166,495 shares of common stock issued or issuable upon the exercise of options and restricted stock units originally issued to officers and directors of Legacy Wag!. In addition, we are registering 12,500,000 shares of common stock issuable upon exercise of the Public Warrants that were previously registered. | ||||
Warrants offered by the selling securityholders | Up to 3,695,564 Private Placement Warrants. | ||||
Redemption | The Public Warrants are redeemable in certain circumstances. See “Description of Capital Stock — Warrants.” | ||||
| Terms of the offering | The selling securityholders will determine when and how they will dispose of the securities registered for resale under this prospectus. | ||||
| Use of proceeds | We will not receive any of the proceeds from the sale of the shares of common stock or Private Placement Warrants by the selling securityholders, except with respect to amounts received by us due to the exercise of the Warrants. | ||||
| Risk factors | Before investing in our securities, you should carefully read and consider the information set forth in “Risk Factors.” | ||||
| Nasdaq ticker symbols | “PET” and “PETWW.” | ||||
| For additional information concerning the offering, see “Plan of Distribution.” | |||||

| Years Ended December 31, | |||||||||||||||||||||||
| ($ in thousands, except percentages) | 2022 | 2021 | $ Change | % Change | |||||||||||||||||||
| Revenues | $ | 54,865 | $ | 20,082 | $ | 34,783 | 173 | % | |||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||
| Cost of revenues, excluding depreciation and amortization | 4,024 | 2,777 | 1,247 | 45 | % | ||||||||||||||||||
| Platform operations and support | 13,825 | 10,265 | 3,560 | 35 | % | ||||||||||||||||||
| Sales and marketing | 35,156 | 10,221 | 24,935 | 244 | % | ||||||||||||||||||
| General and administrative | 32,415 | 6,956 | 25,459 | 366 | % | ||||||||||||||||||
| Depreciation and amortization | 571 | 388 | 183 | 47 | % | ||||||||||||||||||
| Total costs and expenses | 85,991 | 30,607 | 55,384 | 181 | % | ||||||||||||||||||
| Change in fair value of derivatives | (4,958) | — | (4,958) | NM | |||||||||||||||||||
| Gain on forgiveness of PPP loan | — | 3,482 | (3,482) | NM | |||||||||||||||||||
| Interest expense, net | (2,470) | (61) | (2,409) | 3949 | % | ||||||||||||||||||
Loss before income taxes | (38,554) | (7,104) | (31,450) | 443 | % | ||||||||||||||||||
| Income tax benefit (expense) | (13) | 793 | (806) | NM | |||||||||||||||||||
Net income (loss) | $ | (38,567) | $ | (6,311) | $ | (32,256) | 511 | % | |||||||||||||||
| Years Ended December 31, | |||||||||||
| ($ in thousands) | 2022 | 2021 | |||||||||
| Net cash flows used in operating activities | $ | (2,803) | $ | (12,256) | |||||||
| Net cash flows (used in) provided by investing activities | 1,835 | 8,087 | |||||||||
| Net cash flows provided by financing activities | 37,089 | (51) | |||||||||
Net change in cash, cash equivalents, and restricted cash | $ | 36,121 | $ | (4,220) | |||||||
| Years Ended December 31, | |||||||||||
| ($ in thousands, except percentages) | 2022 | 2021 | |||||||||
| U.S. GAAP Measures: | |||||||||||
| Revenues | $ | 54,865 | $ | 20,082 | |||||||
| Net income (loss) | $ | (38,567) | $ | (6,311) | |||||||
| Net income (loss) % | (70.3) | % | (31.4) | % | |||||||
| Net cash flows provided by (used in) operating activities | $ | (2,803) | $ | (12,256) | |||||||
| Non-GAAP measures: | |||||||||||
| Adjusted EBITDA | $ | (3,872) | $ | (9,915) | |||||||
| Adjusted EBITDA Margin | (7.1) | % | (49.4) | % | |||||||
| Years Ended December 31, | |||||||||||
| ($ in thousands) | 2022 | 2021 | |||||||||
| Revenues | $ | 54,865 | $ | 20,082 | |||||||
| Adjusted EBITDA reconciliation: | |||||||||||
| Net income (loss) | (38,567) | (6,311) | |||||||||
| Add (deduct): | |||||||||||
| Interest expense (income) | 2,470 | 61 | |||||||||
| Depreciation and amortization | 571 | 388 | |||||||||
Share based compensation (1) | 24,492 | 222 | |||||||||
Issuance of Community Shares (2) | 1,971 | — | |||||||||
Integration and transaction costs associated with acquired business (3) | 220 | — | |||||||||
Change in fair value of derivatives (4) | 4,958 | — | |||||||||
| Gain on forgiveness of PPP loan | — | (3,482) | |||||||||
| Tax (benefit) expense | 13 | (793) | |||||||||
Adjusted EBITDA | $ | (3,872) | $ | (9,915) | |||||||











| Board | Leadership | Non-Leadership | ||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| American Indian or Alaska Native | — | % | — | % | — | % | — | % | 2 | % | — | % | ||||||||
| Asian | 33 | % | 20 | % | 5 | % | 8 | % | 16 | % | 15 | % | ||||||||
| Black or African American | 17 | % | — | % | 5 | % | 8 | % | 6 | % | 8 | % | ||||||||
| Hispanic or Latino | — | % | — | % | — | % | — | % | 16 | % | 14 | % | ||||||||
| Two or More Races | — | % | 5 | % | — | % | 8 | % | 6 | % | ||||||||||
| White | 50 | % | 80 | % | 85 | % | 84 | % | 52 | % | 57 | % | ||||||||
| 2022 | 2021 | |||||||
| 24 years and younger | 4 | % | 8 | % | ||||
| 25-29 years | 24 | % | 28 | % | ||||
| 30-34 years | 32 | % | 19 | % | ||||
| 35-39 years | 8 | % | 11 | % | ||||
| 40-49 years | 22 | % | 21 | % | ||||
| 50+ years | 10 | % | 13 | % | ||||
| 2023 | 288 | ||||
| 2024 | 248 | ||||
| 2025 | 255 | ||||
| 2026 | 43 | ||||
| Total minimum lease payments | $ | 834 | |||
| Name | Age | Position | ||||||||||||
| Garrett Smallwood | 32 | Chief Executive Officer and Chairperson of the Board | ||||||||||||
| Adam Storm | 32 | President and Chief Product Officer | ||||||||||||
| Dylan Allread | 38 | Chief Operating Officer | ||||||||||||
| Alec Davidian | 40 | Chief Financial Officer | ||||||||||||
| Patrick McCarthy | 42 | Chief Marketing Officer | ||||||||||||
| Maziar (Mazi) Arjomand | 30 | Chief Technology Officer | ||||||||||||
| David Cane | 40 | Chief Customer Officer | ||||||||||||
| Nicholas Yu | 41 | Director of Legal | ||||||||||||
Roger Lee(1) | 51 | Director | ||||||||||||
Melinda Chelliah(1)(2) | 56 | Director | ||||||||||||
Jocelyn Mangan(2) | 51 | Director | ||||||||||||
Brian Yee(2)(3) | 39 | Director | ||||||||||||
Kimberly A. Blackwell(1)(3) | 51 | Director | ||||||||||||
Sheila Lirio Marcelo(3) | 52 | Director | ||||||||||||
| Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) (1) | Option Awards ($) (2) | Non-Equity Incentive Plan Compensation ($) (3) | All Other Compensation ($)(4) | Total (S) | ||||||||||||||||||||||||||||||||||||||||||
| Garrett Smallwood | 2022 | $ | 350,000 | $ | — | $ | 1,190,475 | $ | — | $ | 528,437 | $ | 1,332 | $ | 2,070,244 | |||||||||||||||||||||||||||||||||||
| Chief Executive Officer | 2021 | $ | 301,924 | $ | 250,000 | $ | — | $ | 5,245 | $ | — | $ | 168 | $ | 552,092 | |||||||||||||||||||||||||||||||||||
| Adam Storm | 2022 | $ | 350,000 | $ | — | $ | 1,190,475 | $ | — | $ | 528,437 | $ | 1,332 | $ | 2,070,244 | |||||||||||||||||||||||||||||||||||
| President and Chief Product Officer | 2021 | $ | 301,924 | $ | 250,000 | $ | — | $ | 5,245 | $ | — | $ | 168 | $ | 552,092 | |||||||||||||||||||||||||||||||||||
| Mazi Arjomand | 2022 | $ | 350,000 | $ | — | $ | 1,190,475 | $ | — | $ | 528,437 | $ | 1,332 | $ | 2,070,244 | |||||||||||||||||||||||||||||||||||
| Chief Technology Officer | 2021 | $ | 301,924 | $ | 250,000 | $ | — | $ | 5,245 | $ | — | $ | 168 | $ | 552,092 | |||||||||||||||||||||||||||||||||||
Option Awards(1) | Stock Awards(2) | |||||||||||||||||||||||||||||||||||||||||||
| Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price($) | Option Expiration Date | Number of shares or units that have not vested (#)(3) | Market or payout value of shares or units that have not vested ($)(4) | |||||||||||||||||||||||||||||||||||||
| Garrett Smallwood | 12/01/2022 | — | — | — | — | 476,190 | (5) | $ | 1,466,665 | |||||||||||||||||||||||||||||||||||
| 08/09/2022 | 8,885 | — | $ | 2.23 | 08/15/2027 | — | — | |||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 24,301 | — | $ | 3.05 | 08/27/2028 | — | — | |||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 1,482,983 | — | $ | 0.09 | 03/17/2030 | — | — | |||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 46,343 | — | $ | 0.16 | 03/01/2031 | — | — | |||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 75,413 | — | $ | 2.86 | 05/05/2029 | — | — | |||||||||||||||||||||||||||||||||||||
| Adam Storm | 12/01/2022 | — | — | — | — | 476,190 | (5) | $ | 1,466,665 | |||||||||||||||||||||||||||||||||||
| 08/09/2022 | 1,081,341 | (6) | 401,642 | $ | 0.09 | 03/17/2030 | — | — | ||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 33,792 | (7) | 12,551 | $ | 0.16 | 03/02/2031 | — | — | ||||||||||||||||||||||||||||||||||||
| Mazi Arjomand | 12/01/2022 | — | — | — | — | 476,190 | (5) | $ | 1,466,665 | |||||||||||||||||||||||||||||||||||
| 08/09/2022 | 8,885 | — | — | $ | 2.23 | 08/15/2027 | — | — | ||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 88,318 | — | $ | 3.05 | 08/27/2028 | — | — | |||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 18,631 | (8) | 810 | $ | 2.86 | 05/05/2029 | — | — | ||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 1,482,983 | — | $ | 0.09 | 03/17/2030 | — | — | |||||||||||||||||||||||||||||||||||||
| 08/09/2022 | 46,343 | — | $ | 0.16 | 03/01/2031 | — | — | |||||||||||||||||||||||||||||||||||||
| Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) (1)(2)(3)(4) | Option Awards ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||||||||
Roger Lee(5) | $ | — | $ | — | — | — | $ | — | ||||||||||||||||||||||||
Brian Yee(5) | $ | — | $ | — | — | — | $ | — | ||||||||||||||||||||||||
| Jocelyn Mangan | $ | 40,000 | $ | 56,255 | (6) | — | — | $ | 96,255 | |||||||||||||||||||||||
| Melinda Chelliah | $ | 40,000 | $ | 56,255 | (6) | — | — | $ | 96,255 | |||||||||||||||||||||||
| Kimberly Blackwell | $ | 16,667 | $ | 267,858 | (6) | — | — | $ | 284,525 | |||||||||||||||||||||||
| Sheila Marcelo | $ | 16,667 | $ | 267,858 | (6) | — | — | $ | 284,525 | |||||||||||||||||||||||
| Niko Bonatsos | $ | — | $ | — | — | — | $ | — | ||||||||||||||||||||||||
| Name | Aggregate Number of Shares Underlying Outstanding Stock Awards | Aggregate Number of Shares Underlying Outstanding Option Awards | ||||||||||||
| Roger Lee | — | — | ||||||||||||
| Brian Yee | — | — | ||||||||||||
| Jocelyn Mangan | 80,692 | — | ||||||||||||
| Melinda Chelliah | 80,692 | — | ||||||||||||
| Kimberly Blackwell | 107,143 | — | ||||||||||||
| Sheila Marcelo | 107,143 | — | ||||||||||||
| Niko Bonatsos | — | — | ||||||||||||
Name of Beneficial Owner(1) | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | ||||||||||||
| Greater than Five Percent Holders | ||||||||||||||
ACME Funds (2) | 6,997,137 | 18.7% | ||||||||||||
General Catalyst (3) | 6,976,530 | 18.6% | ||||||||||||
Tenaya Capital (4) | 4,024,849 | 10.7% | ||||||||||||
Battery Ventures (5) | 3,853,840 | 10.3% | ||||||||||||
| Named Executive Officers and Directors | ||||||||||||||
Garrett Smallwood (6) | 1,759,473 | 4.5% | ||||||||||||
Adam Storm (7) | 1,525,346 | 3.9% | ||||||||||||
Maziar (Mazi) Arjomand (8) | 1,765,018 | 4.5% | ||||||||||||
Roger Lee (5) | 3,853,840 | 10.3% | ||||||||||||
Melinda Chelliah (9) | 37,031 | * | ||||||||||||
Jocelyn Mangan (10) | 37,031 | * | ||||||||||||
Brian Yee (11) | — | — | ||||||||||||
| Kimberly A. Blackwell | — | — | ||||||||||||
| Sheila Lirio Marcelo | — | — | ||||||||||||
All current executive officers and directors as a group (14 persons) (12) | 10,440,063 | 23.9% | ||||||||||||
| Shares of Common Stock | Warrants to Purchase Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||
| Name | Number Beneficially Owned Prior to Offering | Number Registered for Sale Hereby | Number Beneficially Owned After Offering | Percent Owned After Offering | Number Beneficially Owned Prior to Offering | Number Registered for Sale Hereby | Number Beneficially Owned After Offering | Percent Owned After Offering | ||||||||||||||||||||||||||||||||||||||||||
| PIPE Investors | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Corbin ERISA Opportunity Fund, Ltd. | 166,433 | 166,433 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Corbin Opportunity Fund, L.P | 81,469 | 81,469 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Pinehurst Partners, L.P | 192,233 | 192,233 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total – PIPE Investors | 440,135 | 440,135 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Holders of Registration Rights Pursuant to Registration Rights Agreement | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Transferees of CHW Acquisition Sponsor, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Carol Grundman | 4,167 | 4,167 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| CPC Sponsor Opportunities I (Parallel), LP | 147,117 | 147,117 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| CPC Sponsor Opportunities I, LP | 176,217 | 176,217 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| DDR Partners, LLC | 13,334 | 13,334 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Deane A. Gilliam 2017 Irrevocable Family Trust | 8,333 | 8,333 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Deborah Weinswig | 26,400 | 26,400 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Debra Benovitz | 32,000 | 32,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Eric Distenfeld | 5,000 | 5,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Gary E. McCullough | 20,000 | 20,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Gary William Tickle | 35,000 | 35,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| GTOV Partners LP | 8,333 | 8,333 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Harvey Beker | 50,000 | 50,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Jason Reiser | 34,000 | 34,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Jeffrey Lee | 100,000 | 100,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Jethro Solomon | 7,500 | 7,500 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Joshua Drazen | 13,334 | 13,334 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Kenneth Birnbaum | 3,333 | 3,333 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Leon Meyers | 16,667 | 16,667 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Meteora Capital Partners, LP | 250,000 | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Meteora Special Opportutnity Fund I, LP | 250,000 | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Michael Raskas | 33,333 | 33,333 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| MJG Partners, LLC | 215,299 | 215,299 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Paul Norman | 62,000 | 62,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Polar Multi-Strategy Master Fund | 250,000 | 250,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Rachel Raskas | 5,000 | 5,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Rebecca Newhouse | 5,000 | 5,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Simeon Siegel | 10,000 | 10,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| SNR Products, LLC | 215,299 | 215,299 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Stanly Raskas | 16,667 | 16,667 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Steve Katchur | 50,000 | 50,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Steven A. Davis Trust (Lynda Davis Trustee) | 10,000 | 10,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| The M. Carl Johnson, III 2/6/1996 Revocable Trust Agreement | 45,000 | 45,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Vicmari Investment Ltd. | 85,000 | 85,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Victor Herrero Amigo | 20,000 | 20,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Total – Transferees of CHW Acquisition Sponsor, LLC | 2,223,333 | 2,223,333 | ||||||||||||||||||||||||||||||||||||||||||||||||
| B. Riley Securities, Inc. | 6,250 | 6,250 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Boothbay Fund Management, LLC | 40,200 | 40,200 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Boothbay Diversified Alpha Master Fund | 19,800 | 19,800 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Chardan Capital Markets LLC | 6,250 | 6,250 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Cladirus Ltd | 30,000 | 30,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Corbin ERISA Opportunity Fund, Ltd | 25,800 | 25,800 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Corbin Opportunity Fund, L.P | 8,400 | 8,400 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Corbin Pinehurst Partners, L.P | 25,800 | 25,800 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Glazer Special Opportunity Fund I, LP | 25,000 | 25,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| The HGC Fund LP | 60,000 | 60,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| The K2 Principal Fund L.P | 60,000 | 60,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Kepos Alpha Master Fund L.P | 45,100 | 45,100 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Kepos Special Opportunities Master Fund L.P | 14,900 | 14,900 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| MMCAP International Inc. SPC | 60,000 | 60,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Polar Multi-Strategy Master Fund | 60,000 | 60,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Radcliffe SPAC Master Fund, L.P | 50,000 | 50,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Rivernorth Capital Partners, L.P | 1,758 | 1,758 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Rivernorth Institutional Partners, L.P | 15,818 | 15,818 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Rivernorth SPAC Arbitrage Fund, L.P | 42,424 | 42,424 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Space Summit Opportunity Fund I LLP | 50,000 | 50,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Tenor Opportunity Master Fund, LTD | 60,000 | 60,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total – Holders of Registration Rights | 2,930,833 | 2,930,833 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Executive Officers and Directors | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Garrett Smallwood | 2,116,615 | (1) | 1,637,925 | (2) | 478,690 | 1.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Adam Storm | 2,005,516 | (3) | 1,529,326 | (4) | 476,190 | 1.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Dylan Allread | 1,042,227 | (5) | 785,084 | (6) | 257,143 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Alec Davidian | 407,595 | (7) | 148,952 | (8) | 258,643 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Patrick McCarthy | 386,654 | (9) | 129,511 | (10) | 257,143 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Maziar (Mazi) Arjomand | 2,122,160 | (11) | 1,645,970 | (12) | 476,190 | 1.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| David Cane | 305,570 | (13) | 91,284 | (14) | 214,286 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Nicholas Yu | 177,018 | (15) | 29,161 | (16) | 147,857 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Melinda Chelliah | 107,143 | (17) | 84,641 | (18) | 22,502 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Jocelyn Mangan | 107,143 | (19) | 84,641 | (20) | 22,502 | * | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Total – Executive Officers and Directors | 8,777,641 | 6,166,495 | 2,611,146 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Other Selling Securityholders | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| SVB Financial Group | 42,262 | 42,262 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Westriver Mezzanine Loans – Loan Pool V, LLC | 30,172 | 30,172 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total – Other Security Holders | 72,434 | 72,434 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
All Other Selling Security Holders(21) | 200,000 | 200,000 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Holders of Warrants - Transferees of CHW Acquisition Sponsor, LLC | ||||||||||||||||||||||||||||||||||||||||||||||||||
| CPC Sponsor Opportunities I (Parallel), LP | — | — | — | — | 455,000 | 455,000 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| CPC Sponsor Opportunities I, LP | — | — | — | — | 545,000 | 545,000 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Deane A. Gilliam 2017 Irrevocable Family Trust | — | — | — | — | 8,333 | 8,333 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Jeffrey Lee | — | — | — | — | 300,000 | 300,000 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Joshua Drazen | — | — | — | — | 13,334 | 13,334 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Leon Meyers | — | — | — | — | 16,667 | 16,667 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Polar Multi-Strategy Master Fund | 500,000 | 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| SNR Products, LLC | — | — | — | — | 928,615 | 928,615 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| MJG Partners, LLC | — | — | — | — | 928,615 | 928,615 | — | — | ||||||||||||||||||||||||||||||||||||||||||
Total – Holders of Warrants | — | — | — | — | 3,695,564 | 3,695,564 | — | — | ||||||||||||||||||||||||||||||||||||||||||
| Page | |||||
| As of December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | $ | |||||||||
| Short-term investments available for sale | |||||||||||
| Accounts receivable, net | |||||||||||
| Prepaid expenses and other current assets | |||||||||||
| Deferred offering costs | |||||||||||
| Total current assets | $ | $ | |||||||||
| Property and equipment, net | |||||||||||
| Operating lease, right of use assets, net | |||||||||||
| Intangible assets, net | |||||||||||
| Goodwill | |||||||||||
| Other assets | |||||||||||
| Total assets | $ | $ | |||||||||
| Liabilities, mezzanine equity and stockholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | $ | |||||||||
| Accrued expenses and other current liabilities | |||||||||||
| Deferred revenue | |||||||||||
| Deferred purchase consideration – current portion | |||||||||||
| Operating lease liabilities | |||||||||||
| Notes Payable – current portion | |||||||||||
| Total current liabilities | |||||||||||
| Operating lease liabilities – non-current portion | |||||||||||
Notes Payable – non-current portion, net of debt discount of $ | |||||||||||
| Deferred purchase consideration – non-current portion | |||||||||||
| Total liabilities | $ | $ | |||||||||
| Mezzanine equity: | |||||||||||
Redeemable convertible preferred stock par value $ | |||||||||||
| Total mezzanine equity | $ | $ | |||||||||
| Stockholders’ deficit: | |||||||||||
Common stock, $ | $ | $ | |||||||||
| Additional paid-in capital | |||||||||||
| Accumulated deficit | ( | ( | |||||||||
| Total stockholders’ equity (deficit) | ( | ||||||||||
| Total liabilities, mezzanine equity and stockholders’ deficit | $ | $ | |||||||||
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Revenues | $ | $ | |||||||||
| Costs and expenses: | |||||||||||
| Cost of revenues (exclusive of depreciation and amortization shown separately below) | |||||||||||
| Platform operations and support | |||||||||||
| Sales and marketing | |||||||||||
| General and administrative | |||||||||||
| Depreciation and amortization | |||||||||||
| Total costs and expenses | |||||||||||
| Change in fair value of derivative liability | ( | ||||||||||
| Gain on forgiveness of PPP loan | |||||||||||
| Interest expense, net | ( | ( | |||||||||
| Income (loss) before income taxes | ( | ( | |||||||||
| Income tax benefit (expense) | ( | ||||||||||
| Net income (loss) | $ | ( | $ | ( | |||||||
| Net earnings (loss) per share | |||||||||||
Net loss per share, basic and diluted | $ | ( | $ | ( | |||||||
Weighted average common shares outstanding and dilutive potential common shares (diluted) | |||||||||||
| Redeemable Preferred Stock – Mezzanine Equity | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total Stockholders’ Deficit | |||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
| Reverse recapitalization | ( | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
| As adjusted, beginning of period | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon exercise of stock options | — | $ | — | $ | — | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||||||||||||||
| Shares issued upon acquisition | — | $ | — | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
| Net income (loss) | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||||||
| Preferred Series P Issuance, net of issuance costs | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Shares issued upon exercise of stock options | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Conversion of Series P preferred stock to common | ( | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Conversion of preferred to common stock | ( | ( | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation due to Earnout Shares | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Issuance of Community Shares | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
| Business Combination with CHW, net of transaction costs and other related shares | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
| Shares issued for acquisition of Furmacy, Inc. | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Settlement of forward share purchase agreement derivative liability | — | — | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||
| Balance at December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net loss | $ | ( | $ | ( | |||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
| Stock-based compensation | |||||||||||
| Gain on PPP loan forgiveness | ( | ||||||||||
| Amortization of debt discount on debt financing | |||||||||||
| Provision for deferred taxes | ( | ||||||||||
| Depreciation and amortization | |||||||||||
| Issuance of Community Shares | |||||||||||
| Noncash interest – deferred purchase consideration | |||||||||||
| Noncash change in fair value of derivatives | |||||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | ( | ( | |||||||||
| Prepaid expenses and other current assets | ( | ||||||||||
| Deferred costs | ( | ||||||||||
| Other assets | |||||||||||
| Accounts payable | |||||||||||
| Operating lease liabilities | |||||||||||
| Accrued expenses and other current liabilities | ( | ||||||||||
| Deferred revenue | |||||||||||
| Other non-current liabilities | ( | ||||||||||
| Net cash used in operating activities | ( | ( | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchases of short-term investments | ( | ||||||||||
| Proceeds from sale and maturity of short-term investments | |||||||||||
| Payment of deferred purchase consideration | ( | ( | |||||||||
Net cash acquired in acquisition of Furmacy, Inc. | |||||||||||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | ( | ||||||||||
| Purchase of property and equipment | ( | ( | |||||||||
| Net cash provided by investing activities | |||||||||||
| Cash flows from financing activities | |||||||||||
| Proceeds from exercises of stock options | |||||||||||
| Payments on PPP loan | ( | ( | |||||||||
| Proceeds from Blue Torch Financing Agreement | |||||||||||
| Repayment of Blue Torch Financing | ( | ||||||||||
| Proceeds from the issuance of Series P preferred stock, net of issuance costs | |||||||||||
| Proceeds from Business Combination with CHW, net of transaction costs | |||||||||||
| Net cash provided by financing activities | ( | ||||||||||
| Net change in cash, cash equivalents, and restricted cash | ( | ||||||||||
| Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
| Supplemental disclosures of cash flow information: | |||||||||||
| Cash paid during the year for interest | |||||||||||
| Cash paid during the year for income taxes | |||||||||||
Non-cash financing transactions: | |||||||||||
Forward share purchase agreements | |||||||||||
Conversion of preferred shares to common stock | ( | ||||||||||
| Estimated useful life | |||||
| Equipment | |||||
| Capitalized software | |||||
| Leasehold improvements | Shorter of estimated useful life or lease term | ||||
| Reverse Recapitalization | |||||
Cash – CHW’s trust (net of redemptions) | $ | ||||
| Cash – PIPE and Backstop Investor | |||||
| Payment of transaction costs and other related expenses | ( | ||||
| Payment of deferred transaction costs | ( | ||||
Proceeds from merger with CHW, net of issuance costs as of the Merger Date | $ | ||||
| Reversal of APIC impact recorded upon issuance of Forward Share Purchase Agreements ("FPAs") in August 2022 | ( | ||||
| Cash received from FPA at Put Date | |||||
| APIC impact of FPA at Put Date, net of cash received | |||||
Proceeds from merger with CHW, net of issuance costs as of December 31, 2022 | $ | ||||
| Number of Shares | |||||
CHW public shares, prior to redemptions¹ | |||||
| Less redemption of CHW shares | ( | ||||
| CHW public shares, net of redemptions | |||||
| Sponsor Shares | |||||
| PIPE and Backstop Shares | |||||
Business Combination and Financing Shares | |||||
| Other share activity (Analyst Shares², Warrant Exercises) | |||||
Business Combination, Financing Shares and Other Related Shares | |||||
| Legacy Wag! Shares³ | |||||
Total shares of common stock immediately after Business Combination | |||||
| Stock Price (in whole dollars) | Dividend Yield | Volatility | Risk-Free Interest Rate | Expected Term (in years) | |||||||||||||||||||||||||
| Earnout Shares | $ | % | % | % | |||||||||||||||||||||||||
| As of August 3, 2021 | |||||
| Intangible assets | $ | ||||
| Goodwill | |||||
| Deferred tax liabilities | ( | ||||
| Total purchase consideration | $ | ||||
| Fair Value | Estimated Useful Life (years) | ||||||||||
| Developed technology | $ | ||||||||||
| Customer relationships and licenses | |||||||||||
| Trademarks | |||||||||||
| Total intangible assets | $ | ||||||||||
| Years Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Services revenue | $ | $ | |||||||||
| Wellness revenue | |||||||||||
| Total revenues | $ | $ | |||||||||
| December 31, 2022 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Cash equivalents | |||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | |||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
| Cash equivalents | |||||||||||||||||||||||
| Money market funds | $ | $ | $ | $ | |||||||||||||||||||
| Short-term investments | |||||||||||||||||||||||
| Corporate bonds | |||||||||||||||||||||||
| Total financial assets | $ | $ | $ | $ | |||||||||||||||||||
| September 30, 2022 | August 9, 2022 | ||||||||||
Exercise price | $ | $ | |||||||||
Stock price | $ | $ | |||||||||
Volatility | % | % | |||||||||
Term (in years) | |||||||||||
Risk-free rate | % | % | |||||||||
Dividend Yield | % | % | |||||||||
| Balance December 31, 2020 | $ | ||||
| CPI Acquisition | |||||
| Balance December 31, 2021 | $ | ||||
Furmacy Acquisition (1) | |||||
| Balance December 31, 2022 | $ | ||||
| December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
| Gross Book Value | Accumulated Amortization | Net Book Value | Gross Book Value | Accumulated Amortization | Net Book Value | ||||||||||||||||||||||||||||||
| Developed technology | ( | ( | |||||||||||||||||||||||||||||||||
| Customer relationships and licenses | ( | ( | |||||||||||||||||||||||||||||||||
| Trademarks | ( | ( | |||||||||||||||||||||||||||||||||
| Pharmacy board licenses | — | — | — | — | |||||||||||||||||||||||||||||||
| Total Finite Life Intangibles | ( | ( | |||||||||||||||||||||||||||||||||
| Total Indefinite Life Intangible Assets | $ | $ | $ | $ | |||||||||||||||||||||||||||||||
| Developed technology | |||||
| Strategic customer relationships and licenses | |||||
| Trademarks | |||||
| Pharmacy board licenses | |||||
| 2023 | $ | ||||
| 2024 | |||||
| 2025 | |||||
| 2026 | |||||
| 2027 | |||||
| Thereafter | |||||
| Total | $ | ||||
| As of December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Equipment | $ | $ | |||||||||
| Capitalized software | |||||||||||
| Total property and equipment | |||||||||||
| Less: accumulated depreciation and amortization | |||||||||||
| Property and equipment, net | $ | $ | |||||||||
| 2023 | |||||
| 2024 | |||||
| 2025 | |||||
| 2026 | |||||
| Total minimum lease payments | $ | ||||
| Carry Value as of December 31, 2022 (in thousands) | Exercise Price (in whole dollars) | Dividend Yield | Volatility | Risk-Free Interest Rate | Expected Term (in years) | ||||||||||||||||||||||||||||||
| Lender Warrants | $ | $ | % | % | % | ||||||||||||||||||||||||||||||
| Amounts | |||||
| 2023 | $ | ||||
| 2024 | |||||
| 2025 | |||||
| Total principal amount | $ | ||||
| December 31, 2021 | ||||||||||||||||||||||||||
| Series | Shares Designated | Shares Issued and Outstanding | Carrying Amount | Liquidation Preference | ||||||||||||||||||||||
| Seed | $ | $ | ||||||||||||||||||||||||
| A | ||||||||||||||||||||||||||
| B | ||||||||||||||||||||||||||
| C | ||||||||||||||||||||||||||
| Total | $ | $ | ||||||||||||||||||||||||
| Number of Options | Weighted-average exercise price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | ||||||||||||||||||||
| Outstanding, December 31, 2021 | $ | ||||||||||||||||||||||
| Granted | |||||||||||||||||||||||
| Exercised | ( | ||||||||||||||||||||||
| Cancelled/forfeited | ( | ||||||||||||||||||||||
| Outstanding, December 31, 2022 | $ | $ | |||||||||||||||||||||
| 2022 | 2021 | ||||||||||
| Expected term | N/A | ||||||||||
| Volatility (%) | N/A | ||||||||||
| Risk-free interest rate (%) | N/A | ||||||||||
| Restricted Stock (Unvested) | |||||||||||
| Number of Shares | Weighted Average Grant Date Fair Value ($ per share) | ||||||||||
| Unvested at December 31, 2021 | $ | ||||||||||
| Grants | |||||||||||
| Vested | ( | ||||||||||
| Forfeited | ( | ||||||||||
| Unvested at December 31, 2022 | $ | ||||||||||
| 2022 | 2021 | ||||||||||
| Operations and support | $ | $ | |||||||||
| Sales and marketing | |||||||||||
| General and administrative | |||||||||||
| Total | $ | $ | |||||||||
| Number of Shares* | Weighted Average Exercise Price ($ per share) | Aggregate Intrinsic Value | |||||||||||||||
| Outstanding at December 31, 2022 | $ | ||||||||||||||||
| Outstanding at December 31, 2021 | $ | ||||||||||||||||
| Share Price (in whole dollars) | Exercise Price (in whole dollars) | Dividend Yield | Volatility | Risk-Free Interest Rate | Expected Term (in years) | |||||||||||||||||||||||||||
| $ | $ | % | % | % | ||||||||||||||||||||||||||||
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Statutory rate | % | % | |||||||||
| State tax | % | % | |||||||||
| Valuation allowance | ( | % | ( | % | |||||||
| Other | ( | % | % | ||||||||
| Stock based compensation | ( | % | ( | % | |||||||
| Change in fair value of derivative liability | ( | % | % | ||||||||
| Transaction costs - Success based | % | % | |||||||||
| PPP Loan Forgiveness | % | % | |||||||||
| Total | % | % | |||||||||
| Year Ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Deferred tax assets: | |||||||||||
| Net operating loss | $ | $ | |||||||||
| Stock-based compensation | |||||||||||
| Charitable contributions | |||||||||||
| Accrued expenses | |||||||||||
| Capitalized research and development | |||||||||||
| Lease liability | |||||||||||
| Other | |||||||||||
| Total deferred tax assets | $ | $ | |||||||||
| Deferred tax liabilities: | |||||||||||
| Fixed assets | $ | $ | ( | ||||||||
| Right-of-use asset | ( | ||||||||||
| Intangibles assets | ( | ( | |||||||||
| Total deferred tax liabilities | $ | ( | $ | ( | |||||||
| Valuation allowance | |||||||||||
| Net deferred tax taxes | $ | $ | |||||||||
| Year ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Numerator: | |||||||||||
| Net income (loss) attributable to common stockholders | $ | ( | $ | ( | |||||||
| Denominator: | |||||||||||
| Weighted-average shares used in computing net loss per share attributable to common stockholders | |||||||||||
| Net loss per share attributable to common stockholders, basic and diluted | $ | ( | $ | ( | |||||||
| Years ended December 31, | |||||||||||
| 2022 | 2021 | ||||||||||
| Series Seed convertible preferred shares | |||||||||||
| Series A convertible preferred shares | |||||||||||
| Series B convertible preferred shares | |||||||||||
| Series C convertible preferred shares | |||||||||||
| Series P convertible preferred shares | |||||||||||
| Earnout Shares | |||||||||||
| Options and RSUs issued and outstanding | |||||||||||
| Warrants issued and outstanding | |||||||||||
| Total | |||||||||||
| SEC registration fee | $ | 13,744.63 | |||
| Accountants’ fees and expenses | 55,000.00 | ||||
| Legal fees and expenses | 400,000.00 | ||||
| Printing fees | 135,000.00 | ||||
| Miscellaneous | — | ||||
| Total expenses | $ | 603,744.63 | |||
| Incorporated by Reference | ||||||||||||||||||||||||||||||||
| Exhibit Number | Description | Schedule/Form | File No | Exhibit | Filing Date | |||||||||||||||||||||||||||
| 2.1+ | 8-K | 001-40764 | 2.1 | February 3, 2022 | ||||||||||||||||||||||||||||
| 3.1 | 8-K | 001-40764 | 3.2 | August 15, 2022 | ||||||||||||||||||||||||||||
| 3.2 | 8-K | 001-40764 | 3.3 | August 15, 2022 | ||||||||||||||||||||||||||||
| 4.1 | S-4 | 333-263418 | 4.4 | July 1, 2022 | ||||||||||||||||||||||||||||
| Incorporated by Reference | ||||||||||||||||||||||||||||||||
| Exhibit Number | Description | Schedule/Form | File No | Exhibit | Filing Date | |||||||||||||||||||||||||||
| 4.2 | S-1 | 333-267405 | 4.2 | September 14, 2022 | ||||||||||||||||||||||||||||
| 4.3 | S-1 | 333-267405 | 4.3 | September 14, 2022 | ||||||||||||||||||||||||||||
| 5.1* | ||||||||||||||||||||||||||||||||
| 10.1 | 8-K | 001-40764 | 10.2 | August 15, 2022 | ||||||||||||||||||||||||||||
| 10.2 | 8-K | 001-40764 | 10.6 | February 3, 2022 | ||||||||||||||||||||||||||||
| 10.3 | PIPE and Backstop Subscription Agreement, dated as of February 2, 2022, by and between CHW and the other parties signatories thereto. | 8-K | 001-40764 | 10.3, 10.4, | February 3, 2022 | |||||||||||||||||||||||||||
| 10.4 | 8-K | 001-40764 | 10.7 | February 3, 2022 | ||||||||||||||||||||||||||||
| 10.5# | S-4/A | 333-263418 | 10.6 | May 10, 2022 | ||||||||||||||||||||||||||||
| 10.6# | S-4/A | 333-263418 | 10.7 | May 10, 2022 | ||||||||||||||||||||||||||||
| 10.7+ | 8-K | 001-40764 | 10.6 | August 15, 2022 | ||||||||||||||||||||||||||||
| 10.8+ | 8-K | 001-40764 | 10.8 | August 15, 2022 | ||||||||||||||||||||||||||||
| 10.9+ | 8-K | 001-40764 | 10.7 | August 15, 2022 | ||||||||||||||||||||||||||||
| 10.10 | 8-K | 001-40764 | 10.1 | August 8, 2022 | ||||||||||||||||||||||||||||
| 10.11# | S-1 | 333-267405 | 10.12 | September 14, 2022 | ||||||||||||||||||||||||||||
| 10.12# | S-1 | 333-267405 | 10.13 | September 14, 2022 | ||||||||||||||||||||||||||||
| 10.13# | S-1 | 333-267405 | 10.14 | September 14, 2022 | ||||||||||||||||||||||||||||
| 10.14# | S-1 | 333-267405 | 10.15 | |||||||||||||||||||||||||||||
| 10.15# | S-1 | 333-267405 | 10.16 | September 14, 2022 | ||||||||||||||||||||||||||||
| Incorporated by Reference | ||||||||||||||||||||||||||||||||
| Exhibit Number | Description | Schedule/Form | File No | Exhibit | Filing Date | |||||||||||||||||||||||||||
| 10.16# | S-1 | 333-267405 | 10.17 | September 14, 2022 | ||||||||||||||||||||||||||||
10.17# | S-1 | 333-267405 | 10.18 | September 14, 2022 | ||||||||||||||||||||||||||||
10.18# | S-1 | 333-267405 | 10.19 | September 14, 2022 | ||||||||||||||||||||||||||||
| 21.1 | 8-K | 001-40764 | 21.1 | August 15, 2022 | ||||||||||||||||||||||||||||
| 23.1* | ||||||||||||||||||||||||||||||||
| 23.2 | ||||||||||||||||||||||||||||||||
| 24.1 | ||||||||||||||||||||||||||||||||
101.INS* | Inline XBRL Instance Document. | |||||||||||||||||||||||||||||||
| 101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | |||||||||||||||||||||||||||||||
| 101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||||||||||||||||||||||||||
| 101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||||||||||||||||||||||||||
| 101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||||||||||||||||||||||||||
| 101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||||||||||||||||||||||||||
| 104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |||||||||||||||||||||||||||||||
| 107 | S-1 | 333-267405 | 107 | September 14, 2022 | ||||||||||||||||||||||||||||
| WAG! GROUP CO. | |||||
| By: | /s/ Garrett Smallwood | ||||
| Garrett Smallwood | |||||
| Chief Executive Officer | |||||
| Signature | Title | Date | ||||||||||||
| /s/ Garrett Smallwood | Chief Executive Officer and Director (Principal Executive Officer) | May 3, 2023 | ||||||||||||
| Garrett Smallwood | ||||||||||||||
| /s/ Alec Davidian | Chief Financial Officer (Principal Financial and Accounting Officer) | May 3, 2023 | ||||||||||||
| Alec Davidian | ||||||||||||||
| * | Director | May 3, 2023 | ||||||||||||
| Roger Lee | ||||||||||||||
| * | Director | May 3, 2023 | ||||||||||||
| Melinda Chelliah | ||||||||||||||
| * | Director | May 3, 2023 | ||||||||||||
| Jocelyn Mangan | ||||||||||||||
| * | Director | May 3, 2023 | ||||||||||||
| Brian Yee | ||||||||||||||
| * | Director | May 3, 2023 | ||||||||||||
| Kimberly A. Blackwell | ||||||||||||||
| * | Director | May 3, 2023 | ||||||||||||
| Sheila Lirio Marcelo | ||||||||||||||
| *By: | /s/ Garrett Smallwood | ||||
| Garrett Smallwood | |||||
| Attorney-in-Fact | |||||

| Very truly yours, | |||||
| CLEARY GOTTLIEB STEEN & HAMILTON LLP | |||||
| By | /s/ Adam J. Brenneman | ||||
| /s/ Adam J. Brenneman, a Partner | |||||
Cover |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Cover [Abstract] | |
| Document Type | POS AM |
| Amendment Description | This Post-Effective Amendment No. 2 (the “Post-Effective Amendment No. 2”) to the Registration Statement on Form S-1 of Wag! Group Co. (File No. 333-267405), originally declared effective by the Securities and Exchange Commission (“SEC”) on November 4, 2022 (the “Registration Statement”), is being filed to include information contained in the registrant’s Annual Report on Form 10-K for the year ended December 31, 2022 which was filed with the SEC on March 31, 2023, and to update certain other information in the Registration Statement. The information included in this filing amends and restates the information contained in the Registration Statement and the prospectus contained therein. No additional securities are being registered under this Post-Effective Amendment No. 2. All applicable registration fees were paid at the time of the original filing of the Registration Statement on September 14, 2022. |
| Document Period End Date | Dec. 31, 2022 |
| Document Fiscal Year Focus | 2022 |
| Document Fiscal Period Focus | FY |
| Amendment Flag | true |
| Entity Registrant Name | WAG! GROUP CO. |
| Entity Central Index Key | 0001842356 |
| Entity Filer Category | Non-accelerated Filer |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Debt discount | $ 7,000 | $ 7,000 |
| Redeemable preferred stock, par value | $ 0.0001 | $ 0.0001 |
| Redeemable preferred stock, authorized | 1,000,000 | 24,545,386 |
| Redeemable preferred stock, issued | 0 | 23,858,824 |
| Redeemable preferred stock, outstanding | 0 | 23,858,824 |
| Liquidation Preference | $ 67,417 | |
| Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
| Common stock, authorized (in shares) | 110,000,000 | 43,763,126 |
| Common stock, outstanding (in shares) | 36,849,076 | 6,121,253 |
Consolidated Statements of Operations - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Income Statement [Abstract] | ||
| Revenues | $ 54,865 | $ 20,082 |
| Costs and expenses: | ||
| Cost of revenues (exclusive of depreciation and amortization shown separately below) | 4,024 | 2,777 |
| Platform operations and support | 13,825 | 10,265 |
| Sales and marketing | 35,156 | 10,221 |
| General and administrative | 32,415 | 6,956 |
| Depreciation and amortization | 571 | 388 |
| Total costs and expenses | 85,991 | 30,607 |
| Change in fair value of derivative liability | (4,958) | 0 |
| Gain on forgiveness of PPP loan | 0 | 3,482 |
| Interest expense, net | (2,470) | (61) |
| Income (loss) before income taxes | (38,554) | (7,104) |
| Income tax benefit (expense) | (13) | 793 |
| Net income (loss) | $ (38,567) | $ (6,311) |
| Net earnings (loss) per share | ||
| Net loss per share, Basic | $ (2.07) | $ (1.10) |
| Net loss per share, Diluted | $ (2.07) | $ (1.10) |
| Weighted-average shares, Diluted | 18,641,076 | 5,742,807 |
Description of the Business |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Description of the Business | Description of the Business Wag! Group Co. (“Wag!,” "Wag," the “Company,” “we” or “our”) formerly known as CHW Acquisition Corporation is incorporated in Delaware with headquarters in San Francisco, California. The Company develops and supports proprietary marketplace technologies available as a website and mobile app (“platform” or “marketplace”) that enables independent pet caregivers (“PCG”) to connect with Pet Parents (“Services”) and third party service partners to provide a suite of pet wellness services and products (“Wag! Wellness” or "Wellness"), including pet expert advice, pet wellness plans, and a pet insurance comparison tool. The platform allows Pet Parents (also referred to as “end-user(s)”), who require specific pet care services, to make service requests in the platform, which are then fulfilled by PCGs. The Company operates in the United States. On August 9, 2022 (the “Closing Date” or "Merger Date"), Wag! Labs, Inc. ("Legacy Wag!"), CHW Acquisition Corporation (“CHW”), and CHW Merger Sub, Inc. (“Merger Sub”) pursuant to the terms of the Business Combination Agreement and Plan of Merger (the “Business Combination Agreement”) dated February 2, 2022, completed the business combination of Legacy Wag! and CHW which was effected by the merger of Merger Sub with and into Legacy Wag!, with Legacy Wag! surviving the Merger as a wholly owned subsidiary of CHW (the “Merger,” and, together with the other transactions contemplated by the Business Combination Agreement, the “Business Combination”). Upon completion of the Merger on August 9, 2022, the Company changed its name to Wag! Group Co. and effectively assumed all of CHW’s material operations. Refer to Note 3 - Business Combinations for more information regarding the Merger. In November 2022, the Company via its wholly owned subsidiary, Compare Pet Insurance Services, Inc. ("CPI"), entered into an agreement to invest in a new limited liability company for an investment of $1.47 million. The Company funded this investment in the first quarter of 2023. We do not anticipate having control of the entity. On December 27, 2022 Wag! entered into an Asset Purchase Agreement with Clicks and Traffic LLC (“Dog Food Advisor”) to purchase its Dog Food Advisor assets for cash consideration of $9.0 million. The transaction subsequently closed on January 5, 2023, upon satisfaction of the remaining closing conditions. Dog Food Advisor is one of the most visited and trusted dog food marketplaces, helping Pet Parents make informed decisions about dog and cat food. For additional information around the accounting for the transaction, refer to Note 15 - Subsequent Events.
|
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
| Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The Company has prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For periods prior to the Merger, the reported share and per share amounts have been retroactively converted by the applicable exchange ratio with the exception of the authorized shares and shares reserved for issuance. The shares and per share amounts, prior to the Merger, have been retroactively restated as shares reflecting conversion at the exchange ratio of 0.97 established in the Business Combination Agreement. See Note 3—Business Combinations for additional information. Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance of the Company. As such, the Company has determined that it operates as one operating segment within the United States. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosures as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on various factors, including historical experience, and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Significant items subject to estimates and assumptions include, but are not limited to, fair values of financial instruments, valuation of stock-based compensation and warrants, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed in business combinations and the valuation allowance for deferred income taxes. Actual results may differ from these estimates. Business Combinations The Company accounts for business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to the valuation of intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. Certain Significant Risks and Uncertainties The Company has experienced negative cash flows since inception and had an accumulated deficit of $148.4 million and $109.9 million as of December 31, 2022 and December 31, 2021, respectively. Historically, the Company has primarily financed its operations through equity and debt financings. The Company intends to finance its future operations through its existing cash and investments. The Company believes that these sources of liquidity will be sufficient to meet its operating needs for at least the next 12 months. Since December 2019, the coronavirus (“COVID-19”) has spread throughout the United States and in many other countries globally. The extent to which the Company’s operations will continue to be impacted by the COVID-19 pandemic will depend largely on future developments including the emergence of new variants and actions by government authorities and private businesses to contain new outbreaks of the pandemic or respond to its impact, among other things. The COVID-19 pandemic has impacted our business operations, results of operations, financial position, liquidity, and cash flows. The Company’s revenues in 2021 decreased compared to the pre-COVID revenues, and, although the 2022 fiscal year as seen the highest quarterly revenue since inception, the extent of the impact of the pandemic on our business and financial results will depend largely on future developments both globally and within the United States, including the impact on capital, foreign currencies exchange and financial markets, governmental or regulatory orders that impact our business and whether the impacts may result in permanent changes to our end-user’ behavior, all of which are highly uncertain and cannot be predicted. Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit as well as investments in money market funds that are readily convertible into cash and purchased with original maturities of three months or less. Investments Investments consist mainly of short-term U.S. government and agency securities, commercial paper, and corporate bonds. The Company invests in a diversified portfolio of investments and limits the concentration of its investment in any particular security. Securities with original maturities greater than three months, but less than one year, are included in current assets. All investments are classified as available-for-sale and reported at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders’ equity. Management judges whether a decline in value is temporary based on the length of time that the fair market value has been below cost and the severity of the decline. There were no impairments of investments recorded in the years ended December 31, 2022 and 2021. Accounts Receivable Accounts receivable primarily represent amounts charged but not yet received by the balance sheet date, This includes amounts charged by payment processors on behalf of the Company that are in the process of clearing. These amounts are generally cleared in one to three business days. Additionally includes accounts receivable recorded for commission fees earned but not yet received from third parties in connection with Wag! Wellness services. Substantially all accounts receivable are collected and bad debt expense or the allowance for doubtful accounts were not material. Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives are as follows:
Maintenance and repair costs are charged to expense as incurred. Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. Our annual impairment test is performed in the fourth quarter of each year and the Company’s impairment tests are based on a single operating segment and reporting unit structure. Prior to performing a quantitative evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of the reporting unit exceeds its carrying value. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recognized for the excess of the carrying value of the reporting unit over its fair value. Intangible Assets, Net Intangible assets are recorded at fair value as of the date of acquisition and amortized on a straight- line basis over their estimated useful lives. Impairment of Intangible Assets The Company reviews its definite-lived intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the carrying value of the asset or asset group. If impairment exists, the assets are written down to its estimated fair value. No impairment of definite-lived intangible and long-lived assets was recorded for the years ended December 31, 2022 and 2021. Software Development Costs The Company incurs costs related to the development of its technology platform. The Company will begin to capitalize costs related to technology development when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the technology will be used as intended. Such costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for significant enhancements that are expected to result in additional functionality are capitalized and expensed over the estimated useful life of the upgrades. Capitalized development costs are included in property and equipment, net, in the balance sheets, and amortization expense is included in depreciation and amortization in the statements of operations. Stock-Based Compensation The Company has an equity incentive plan under which it grants equity awards, including stock options. The Company determines compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. The Black-Scholes model considers several variables and assumptions in estimating the fair value of stock-based awards. These variables include per share fair value of the underlying common stock at the measurement date, exercise price, expected term, risk-free interest rate, expected stock price volatility over the expected term, and expected annual dividend yield. For all stock options granted, the Company calculates the expected term using the simplified method as it has limited historical exercise data to provide a reasonable basis upon which to otherwise estimate expected term, and the options have characteristics of “plain-vanilla” options. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the stock-based award. Due to the limited trading history of the Company’s common stock, the expected volatility assumption is generally based on volatilities of a peer group of similar companies whose share prices are publicly available. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own common stock price becomes available. The Company utilizes a dividend yield of zero, as it has no history or plan of declaring dividends on its common stock. The Company recognizes share-based compensation expense, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur rather than on an estimated basis. Stock-based compensation expense for the years ended December 31, 2022 and 2021 has been reduced for actual forfeitures. In connection with the Business Combination, Legacy Wag! stockholders and certain members of management and employees of Legacy Wag! that held either a share of common stock, a Legacy Wag! option or a Legacy Wag! RSU Award (collectively "Eligible Company Equityholders") at the date of the Merger, have the contingent right to Earnout Shares as more fully described in Note 3 - Business Combinations. For Eligible Company Equityholders who were employees or members of management immediately prior to the completion of the Merger, the rights to the Earnout Shares fully vested on the Merger Date and represent a separate award from their existing share-based payment award. In addition, the rights of the Earnout awards are not dependent upon continued employment by the employee or management with the Company in order to receive the Earnout shares if the conditions of issuance are met in the future. The Company determined that the market condition will not affect the term over which the related compensation expense will be recorded because the employee is not required to be employed at the time the market condition is achieved in order to vest in the award. As such, all service conditions were met and, in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), the company recorded a charge to stock compensation of $23.9 million on the Merger Date for the full fair value of the employee and management Earnout Shares awarded. Effective with the Merger of August 9, 2022, the Company's 2014 Stock Plan terminated and the Company only issues RSUs on a go-forward basis under the 2022 Omnibus Incentive Plan ("Omnibus Incentive Plan"). As of December 31, 2022, the Company has granted RSUs with service conditions. Service conditions that affect whether or not an award vests or becomes exercisable are not directly incorporated into the estimate of fair value at the grant date. Income Taxes The Company accounts for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial or tax returns. The measurement of the deferred items is based on enacted tax laws. In the event the future consequences of differences between financial reporting basis and the tax basis of assets and liabilities result in a deferred tax asset, the Company evaluates the probability of being able to realize the future benefits indicated by such asset. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that either some portion or the entire deferred tax asset will not be realized. The Company records a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. We regularly review the deferred tax assets for recoverability based on historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and tax planning strategies. Our judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, our income tax provision would increase or decrease in the period in which the assessment is changed. The Company recognizes a tax benefit from uncertain tax positions only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authorities’ administrative practices and precedents. The tax benefits recognized from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being recognized upon settlement. The Company did not recognize any tax benefits from uncertain tax positions during the years ended December 31, 2022 and 2021. Fair Value The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy, which prioritizes the inputs used to measure fair value. Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs for which there are little or no market data and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments, including cash equivalents, investments, accounts receivable, accounts payable, and accrued liabilities approximate their respective fair value due to their short period of maturities. Concentration of Credit Risk Cash, cash equivalents, investments, and amounts at payment processors are potentially subject to concentration of credit risk. Such balances are maintained at financial institutions that management determines to be of high-credit quality. Cash accounts at each institution are insured by the Federal Deposit Insurance Corporation ("FDIC") up to certain limits. At times, such deposits may be in excess of the FDIC insurance limit. The Company has not experienced any losses on its deposits. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with its Customers. Through its Services offerings, the Company principally generates Service revenue from service fees charged to PCGs for use of the platform to discover pet service opportunities and to successfully complete a pet care service to a pet parent. The Company also generates revenue from subscription fees paid by Pet Parents for Wag! Premium, and fees paid by PCGs to join the platform. Additionally, through its Wellness offerings, the Company generates revenue through commission fees paid by third party service partners in the form of ‘revenue-per-action’ or conversion activity defined in our agreements with the third party service partner. For some of the Company’s arrangements with third party service partners, the transaction price is considered variable, and an estimate of the transaction price is recorded when the action occurs. The estimated transaction price used in the variable consideration is based on historical data with the respective third-party service partner and the consideration is measured and settled monthly. The Company enters into terms of service with PCGs and Pet Parents to use the platform (“Terms of Service Agreements”), as well as an Independent Contractor Agreement (“ICA”) with PCGs (the ICA, together with the Terms of Service Agreements, the “Agreements”). The Agreements govern the fees the Company charges the PCGs for each transaction. Upon acceptance of a transaction, PCGs agree to perform the services that are requested by a pet parent. The acceptance of a transaction request combined with the Agreements establishes enforceable rights and obligations for each transaction. A contract exists between the Company and the PCGs after both the PCGs and pet parent accept a transaction request and the PCGs ability to cancel the transaction lapses. For Wag! Wellness revenue, the Company enters into agreements with third party service partners which define the action by a pet parent that results in the Company earning and receiving a commission fee from the third-party service partner. Wag!’s service obligations are performed, and revenue is recognized for fees earned from PCGs related to the facilitation and completion of a pet service transaction between the pet parent and the PCG through the use of our platform. Revenue generated from the Company’s Wag! Premium subscription is recognized on a ratable basis over the contractual period, which is generally one month to one year from the payment of the subscription fee depending on the type of subscription purchased by the pet parent. Unused subscription amounts are recorded as gift card and subscription liabilities on the consolidated balance sheet. Revenue related to the fees paid by the PCG to join the platform are recognized upon processing of the applications. Wag! Wellness revenue performance obligation is completed, and revenue is recognized when an end-user completes an action or conversion activity. Principal vs. Agent Considerations Judgment is required in determining whether the Company is the principal or agent in transactions with PCGs and Pet Parents. The Company evaluated the presentation of revenues on a gross or net basis based on whether the Company controls the service provided to the pet parent and is the principal (i.e., “gross”), or whether the Company arranges for other parties to provide the service to the pet parent and is an agent (i.e. “net”). This determination also impacts the presentation of incentives provided to both PCGs and Pet Parents, as well as discounts and promotions offered to Pet Parents to the extent they are not customers. The Company’s role in a transaction on the platform is to facilitate PCGs finding, applying, and completing a successful pet care service for a pet parent. The Company has concluded it is the agent in transactions with PCGs and Pet Parents because, among other factors, the Company’s role is to facilitate pet service opportunities to PCGs and it is not responsible for nor controls the delivery of pet services provided by the PCGs to the Pet Parents. Gift Cards The Company sells gift cards that can be redeemed by Pet Parents through the platform. Proceeds from the sale of gift cards are deferred and recorded as contract liabilities in gift card and subscription liabilities on the balance sheets until Pet Parents use the card to place orders on our platform. When gift cards are redeemed, revenue is recognized on a net basis as the difference between the amounts collected from the purchaser less amounts remitted to PCGs. Unused gift cards are recorded as gift card and subscription liabilities on the consolidated balance sheet. Incentives The Company offers discounts and promotions to encourage use of the Company’s platform. These are offered in various forms of discounts and promotions and include: Targeted pet parent discounts and promotions: These discounts and promotions are offered to a limited number of Pet Parents in a specific market to acquire, re-engage, or generally increase Pet Parents’ use of the platform, and are akin to a coupon. The Company records the cost of these discounts and promotions as sales and marketing expenses at the time they are redeemed by the pet parent. Market-wide promotions: These promotions are pricing actions in the form of discounts that reduce the price Pet Parents pay PCGs for services. These promotions result in a lower fee earned by the Company from the PCG. Accordingly, the Company records the cost of these promotions as a reduction of revenues at the time the PCG service is completed. Discounts on services offered through our subscription program are also recorded as a reduction of revenues. Cost of Revenues (exclusive of depreciation and amortization) Cost of revenues consists of costs directly related to revenue generating transactions, which primarily includes fees paid to payment processors for payment processing fees, hosting and platform-related infrastructure costs, third-party costs for background checks for Pet Caregivers, and other costs arising as a result of revenue transactions that take place on our platform, excluding depreciation and amortization. Platform Operations and Support Platform operations and support expenses include personnel-related compensation costs of technology and operations teams, and third-party operations support costs. Sales and Marketing Sales and marketing expenses include personnel-related compensation costs of the marketing team, advertising expenses, and pet parent incentives. Sales and marketing expenses are expensed as incurred. Advertising expenses were $6.9 million and $5.0 million during the years ended December 31, 2022 and 2021, respectively. General and Administrative General and administrative expenses include personnel-related compensation costs for corporate employees, such as management, accounting, and legal as well as insurance and other expenses used to operate the business. Depreciation and Amortization Depreciation and amortization expenses primarily consist of depreciation and amortization expenses associated with the Company’s property and equipment. Amortization includes expenses associated with the Company’s capitalized software and website development, as well as acquired intangible assets. Earnings (Loss) Per Share The Company computes net income (loss) per common stock following the two-class method required for multiple classes of common stock and participating securities. The Company considers the redeemable preferred stock to be participating securities. The two-class method requires income (loss) available to common stockholders for the period to be allocated between multiple classes of common stock and participating securities based upon their respective rights to receive dividends as if all income (loss) for the period had been distributed. The holders of the Company’s redeemable preferred stock would be entitled to dividends in preference to common stockholders, at specified rates, if declared. Such dividends are not cumulative. Any remaining earnings would be distributed among the holders of redeemable preferred stock and common stock pro rata. Holders of the Company’s redeemable preferred stock are not contractually obligated to participate in the Company’s losses. As such, the Company’s net losses for the years ended December 31, 2022 and 2021 were not allocated to these participating securities. Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. The diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which the Company reports net losses, diluted net loss per common stock is the same as basic net loss per common stock, because all potentially dilutive securities are anti-dilutive. Accounting for Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the instruments are free standing financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common shares and whether the instrument holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent period end date while the instruments are outstanding. Management has concluded that the Public Warrants and Private Placement Warrants issued pursuant to the Business Combination qualify for equity accounting treatment. Additionally, the Company considers its warrants ("Lender Warrants") issued in conjunction with the Blue Torch Financing Arrangement (see Note 10 - Debt for additional detail) to be equity classified since they do not meet the liability classification criteria. For further detail on the Company's Warrants (Public, Private and Lender), refer to Note 11 - Stockholders’ Deficit and Mezzanine Equity. Forward Share Purchase Agreements The Company accounted for the Forward Share Purchase Agreements ("FPAs") as a liability under ASC 480, Distinguishing Liabilities from Equity, because it embodied an obligation to repurchase the Company’s shares by paying cash. Therefore, the option was classified as a current liability and is measured at fair value on the Company’s Consolidated Balance Sheets. The unrealized gains and losses from changes in the fair value of the FPAs is reflected in the Consolidated Statements of Operations. This liability was subject to re-measurement at each balance sheet date until exercised, and any change in fair value was recognized in our Consolidated Statement of Operations. As of December 31, 2022, all options under these agreements expired or were exercised. For more information, refer to Note 5 - Fair Value Measurements and Note 3 - Business Combinations. Concentration Risks and Uncertainties Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable balance at each balance sheet date. During the year ended December 31, 2022, the Company had two customers that accounted for 10% or more of total revenue. These customers each represented $7 million to $8 million of total revenue for the year ended December 31, 2022, and in aggregate, accounted for 27% of the Company’s total revenue for the year ended December 31, 2022. As of December 31, 2022, the Company had four customers that accounted for 10% or more of accounts receivable. In aggregate, these customers represented 65% of total accounts receivable as of December 31, 2022. During the year ended December 31, 2021, the Company did not have any customers that accounted for 10% or more of total revenue or accounts receivable. Based on the nature of third party partners, the Company does not anticipate any collectability issues with these receivables and closely monitors the outstanding receivables for payment within agreed upon time periods. Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular, certain Money market funds have been reclassified out of Short-term investments available for sale and into Cash and cash equivalents on the Consolidated Balance Sheet, and Statement of Cash Flows. Recent Accounting Pronouncements Adopted The Company has applied the option given to public companies to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) either (1) within the same time periods as those otherwise applicable to public business entities, or (2) within the same time periods as private companies, including early adoption when permissible. When permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as private companies, as indicated below. On January 1, 2022, the Company adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842). This standard requires lessees to recognize all leases with initial terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated. For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs. The Company also elected the practical expedient to combine non-lease components and lease components for real estate leases. Upon adoption, the Company recorded $0.5 million of right-of-use assets and $0.5 million of lease liabilities on its consolidated balance sheet. On January 1, 2022, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes certain exceptions to the general principles of Topic 740 and provides clarification and simplification of existing guidance. The adoption of ASU 2019-12 did not have a material effect on the consolidated financial statements. Accounting Standards Issued but Not Yet Adopted Credit Losses In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans, and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies ("SRCs") as defined by the SEC. ASU No. 2016-13 is effective for SRCs for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company expects to adopt the standard using the modified retrospective transition method and does not expect the adoption to have an impact to the accumulated deficit on the consolidated balance sheets as of January 1, 2023. Enactment of the Inflation Reduction Act of 2022 On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“IRA”) which, among other changes, created a new corporate alternative minimum tax (“AMT”) based on adjusted financial statement income and imposes a 1% excise tax on corporate stock repurchases. The effective date of these provisions is January 1, 2023. The enactment of the IRA did not have an impact on the Company’s financial statements in 2022. The Company does not expect to be an applicable corporation subject to the AMT tax in 2023 based on its reported GAAP earnings for the past three years.
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| Business Combination And Reverse Recapitalization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations | Business Combinations Business Combination with CHW As described in Note 1, the Merger with CHW was consummated on August 9, 2022 (the “Merger Date”). On the Merger Date, Wag Labs, Inc. (“Legacy Wag!”), CHW Acquisition Corporation, a Cayman Islands exempted company (“CHW”), and CHW Merger Sub Inc., a Delaware corporation and a direct, wholly owned subsidiary of CHW (“Merger Sub”), consummated the closing of the transactions contemplated by the Business Combination Agreement, dated February 2, 2022, by and among Legacy Wag!, CHW, and Merger Sub (the “Business Combination Agreement”), following the approval at an extraordinary general meeting of CHW’s shareholders held on July 28, 2022 (the “Special Meeting”). Pursuant to the terms of the Business Combination Agreement, a business combination of Legacy Wag! and CHW was effected by the merger of Merger Sub with and into Legacy Wag!, with Legacy Wag! surviving the merger as a wholly owned subsidiary of CHW (the “Merger,” and, together with the other transactions contemplated by the Business Combination Agreement, the “Business Combination”). In connection with the consummation of the Business Combination on the day prior to the Merger Date, CHW changed its name from CHW Acquisition Corporation to Wag! Group Co. The Business Combination was accounted for as a reverse recapitalization in accordance with accounting principles generally accepted in the United States of America. Under this method of accounting, CHW was treated as the acquired company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Wag! issuing shares for the net assets of CHW, accompanied by a recapitalization. The shares and net earnings (loss) per common share prior to the Merger have been retroactively restated as shares reflecting the exchange ratio established in the Merger (0.97 shares of the Company’s common stock for each share of Legacy Wag! common stock). The net assets of CHW have been recognized at carrying value, with no goodwill or other intangible assets recorded. Wag! accounted for the acquisition of CHW based on the amount of net assets acquired upon consummation. Wag! has been determined to be the accounting acquirer based on evaluation of the following facts and circumstances: •Wag!’s shareholders have a majority of the voting power of the Post-Combination Company; •Wag! appointed the majority of the board of directors of the Post-Combination Company; •Wag!’s existing management comprises the management of the Post-Combination Company; •Wag! comprises the ongoing operations of the Post-Combination Company; and •Wag! is the larger entity based on historical revenue and has the larger employee base. In connection with the Special Meeting and the Business Combination, the holders of 9,593,970 shares of CHW’s ordinary shares, par value $0.0001 per share, exercised their right to redeem their shares for cash at a redemption price of approximately $10.00 per share, for an aggregate redemption amount of $95,939,700. As a result, the Company received approximately $29.1 million, of which $23.9 million was placed in escrow (and classified as Restricted Cash) in accordance with the Forward Share Purchase Agreements (see section below entitled "Forward Purchase Agreements" for additional information). As of the date of the Merger, the Company also entered into a financing arrangement Blue Torch Finance, LLC and received net proceeds of $29.4 million from a Secured Note (see Note 10 - Debt for additional information). Additionally, the Company received $5 million from the PIPE and Backstop Investor as a result of the agreement entered into by CHW with the PIPE and Backstop Investor party on February 2, 2022 that closed immediately prior to the Merger. Upon the consummation of the Merger, the following transactions occurred (the “Conversion”): i.all outstanding shares of Legacy Wag!’s preferred stock, except for Legacy Wag! Series P Shares (as described in part (vi) below), were converted into shares of the Company’s common stock, par value $0.0001 per share, at the then-effective conversion rate as calculated pursuant to the Business Combination Agreement; ii.the cancellation of each issued and outstanding share of Legacy Wag!’s common stock and the conversion into the right to receive a number of shares of the Company’s common stock equal to the exchange ratio of 0.97 shares of the Company’s common stock for each share of Legacy Wag! common stock; iii.the conversion of 91,130 warrants issued and outstanding by Legacy Wag! in 2017 to two lenders (the “Legacy Wag! Common Warrants”) into warrants exercisable for shares of the Company’s common stock with the same terms except for the number of shares exercisable and the exercise price, each of which were adjusted using an exchange ratio of 0.97 for Legacy Wag! Common Warrants (further described in Note 11 - Stockholders’ Deficit and Mezzanine Equity); iv.the conversion of all outstanding vested and unvested options to purchase shares of Legacy Wag! common stock (the “Legacy Wag! Options”) into options exercisable for shares of the Company’s common stock with the same terms and conditions as were applicable to the Legacy Wag! Options immediately prior to the Conversion, except for the number of shares exercisable and the exercise price, each of which were adjusted using the exchange ratio of 0.97 for Legacy Wag! Options; v.the conversion of the outstanding restricted stock unit award covering shares of Legacy Wag! common stock (each, a “Legacy Wag! RSU Award”) into awards covering a number of shares of Wag! common stock (rounded down to the nearest whole number) with the same terms and conditions as were applicable to the Legacy Wag! RSU Awards immediately prior to the Conversion, except for the number of shares subject to the award, which was adjusted using the exchange ratio of 0.97 for Legacy Wag! RSU Awards; vi.the conversion of 1,100,000 shares of Legacy Wag! Series P Shares into the Company’s common stock on a one-for-one basis; vii.the issuance and sale of 500,000 CHW ordinary shares for a purchase price of $10.00 per share and an aggregate purchase price of $5,000,000 immediately prior to or substantially concurrently with the Merger Date; viii.immediately prior to the Effective Time, each CHW ordinary share (including any Sponsor Shares (as defined below) not forfeited) was converted into shares of the Company’s common stock; ix.the cancellation of 13,327 founder shares held by the Sponsor in accordance with the terms of the CHW Founders Stock Letter (as defined below) and the Business Combination Agreement; x.the issuance of 300,000 Wag! Community Shares ("Community Shares") that the Company may distribute to members of the pet wellness and welfare community as identified by our officers and directors; and xi.the cancellation of 20,000 founder shares held by Sponsor in connection with the Business Combination and in accordance with the CHW Founders Stock Letter and the Business Combination Agreement. Forward Share Purchase Agreements Simultaneously with the closing of the Business Combination, the Company deposited $24.7 million into an escrow account pursuant to four Forward Share Purchase Agreements ("FPAs") entered into by CHW on August 5, 2022. In accordance with the FPAs, on the date of the purchase by the Company of the Investor Shares (the "Put Date"), the participating investors may elect to sell and transfer to the Company, and the Company will purchase, in the aggregate, up to 2,393,378 shares of common stock of the Company, consisting of shares of common stock then held by the Investors and not sold and repurchased by the Investor since the Merger Date. In conjunction with the sale of the Investor Shares to the Company, each Investor shall notify the Company and the Escrow Agent in writing five business days prior to the Put Date whether or not such Investor is exercising its right to sell the Investor Shares that such Investor holds to the Company pursuant to the FPAs (each, a “Shares Sale Notice”). If a Shares Sale Notice is timely delivered by an Investor to the Company and the Escrow Agent, the Company will purchase from such Investor the Investor Shares held by such Investor on the Put Date. If the Investor sells any Investor Shares in the open market after the Merger Date and prior to Put Date (such sale, the “Early Sale” and such shares, the “Early Sale Shares”), the Escrow Agent shall release from the Escrow Account to the Company an amount equal to $10.30 per Early Sale Share sold in such Early Sale. The Company’s purchase of the Investor Shares were made with funds from the escrow account attributed to the Investor Shares. In the event that an Investor sells any Investor Shares in an Early Sale, it shall provide notice to the Company and the Escrow Agent within three business days of such sale, and the Escrow Agent shall release from the escrow account for the Company’s use without restriction an amount equal to the pro rata portion of the escrow attributed to the Investor Shares which the Investor has sold. In the event that the Investor chooses not to sell to the Company any Investor Shares that the Investor owns as of the three-month anniversary of the Merger Date, the Escrow Agent shall release all remaining funds from the escrow account for the Company’s use without restriction. The Company accounts for the FPAs as a derivative liability, remeasured to fair value on a recurring basis, with changes in fair value recorded to earnings. For more information, see Note 5 - Fair Value Measurements. On November 1, 2022, the Company entered into an amendment to a Forward Purchase Agreement (the “Amended Agreement”) for 955 thousand shares. The Amended Agreement modified the date by which such holder could elect to have the Company repurchase its shares to November 23, 2022. No other terms were modified. Effective November 9, 2022, the holders of three FPAs elected to have the Company repurchase the 1.4 million shares covered by their FPAs for an aggregate repurchase price of $14.8 million. The remaining investor and holder of 955 thousand shares, did not elect to sell its shares to the Company as of the extension date per the Amended Agreement and, as such, the Escrow Agent released the corresponding funds from the escrow account for the Company’s use without restriction in total of $9.8 million. Financing Agreement On the Merger Date, the Company entered into a financing agreement with Blue Torch Finance, LLC. See Note 10 - Debt for additional information. Reverse Recapitalization The following table reconciles the elements of the Business Combination, accounted for as a reverse recapitalization, to the Consolidated Statements of Cash Flows and the Consolidated Statements of Stockholders' Deficit for the year ended December 31, 2022 (in thousands):
__________________ 1.Includes 2,393,378 shares of common stock of the Company subject to the Forward Share Purchase Agreements. 2.50,000 shares were issued to Craig-Hallum Capital Group LLC at a price of $4.83 per share. 3.The number of Legacy Wag! shares was determined from the shares of Legacy Wag! common and preferred stock outstanding immediately prior to the closing of the Business Combination of 30,863,283, which are presented net of the common and preferred stock redeemed, converted at the exchange ratio of approximately 0.97 shares of the Company’s common stock for each share of Legacy Wag! common and preferred stock with the exception of 1,100,000 Legacy Wag! Series P Shares which converted into the Company’s common stock on a one-for-one basis. Earnout Compensation In connection with the Business Combination, Legacy Wag! stockholders and certain members of management and employees of Legacy Wag! that held either a share of common stock, a Legacy Wag! option or a Legacy Wag! RSU Award (collectively "Eligible Company Equityholders") at the date of the Merger, have the contingent right to Earnout Shares. The aggregate number of Earnout Shares and Management Earnout Shares is 10,000,000, and 5,000,000, shares of Wag! common stock, respectively. The Earnout Shares will be issued following the Business Combination, only if certain Wag! share price conditions are met over a -year period from the effective Merger Date. The Earnout Shares are subject to the occurrence of certain triggering events based on a three year period from the Merger Date as defined in the Business Combination Agreement as: 1.5,000,000 shares are earned if the stock price of the Company is or exceeds $12.50 for 20 out of any 30 consecutive trading days (“Triggering Event I”) 2.5,000,000 shares earned if the stock price of the Company is or exceeds $15.00 for 20 out of any 30 consecutive trading days (“Triggering Event II”); and 3.5,000,000 shares earned if the stock price of the Company is or exceeds $18.00 for 20 out of any 30 consecutive trading days (“Triggering Event III”) (collectively, the “Triggering Events”). Additionally, if there is a change of control transaction, the agreed upon selling price of the Company on a per share basis, would be the fair value of the shares inclusive of the resulting triggered Earnout Shares upon consummation of the proposed transaction. The per share price in a change in control would be used to determine whether the Triggering Events have been met, and depending on the per share price, a certain number of shares will be issued. The Earnout Shares and Management Earnout Shares are classified as equity transactions at initial issuance and at settlement when and if the triggering conditions are met. The Earnout shares are equity classified since they do not meet the liability classification criteria outlined in ASC 480, Distinguishing Liabilities from Equity and are both (i) indexed to the Company’s own shares and (ii) meet the criteria for equity classification. Until the shares are issued upon a Triggering Event, the Earnout shares are not included in shares outstanding. As of the date of the Business Combination, the Earnout share awards had a total fair value of $23.9 million determined using a Monte Carlo fair value methodology in each of the $12.50, $15.00, and $18.00 Earnout tranches multiplied by the number of Earnout Shares allocated to each individual pursuant to the calculation defined in the Business Combination Agreement. The following table provides the assumptions used to determine fair value:
Acquisition of Compare Pet Insurance, Inc. On August 3, 2021, the Company acquired Compare Pet Insurance, Inc. ("CPI") for $3.5 million in cash consideration, and $0.17 million in common stock consideration, consisting of a total of 639,000 shares of common stock. Of the cash consideration purchase price, $1.5 million was paid on the acquisition date and the remaining $2.0 million to be paid pro-rata quarterly over the next three years starting in the fourth quarter of 2021. The deferred purchase consideration, which was recorded at its fair value on the acquisition date, is presented in accrued expenses and other current liabilities, as well as other non-current liabilities on the consolidated balance sheet. As of December 31, 2022 and December 31, 2021, the amounts included in accrued expenses and other current liabilities, as well as other non-current liabilities on the consolidated balance sheet, were $1.4 million and $1.9 million, respectively. No working capital was acquired from CPI. The purchase consideration allocation was as follows (in thousands):
The table below summarizes the fair value and the estimated useful lives of the acquired intangible assets (in thousands):
Goodwill recorded in connection with the acquisition is primarily attributed to the assembled workforce and anticipated operational synergies. The resulting goodwill is not deductible for tax purposes. Acquisition of Furmacy, Inc.On October 24, 2022, the Company closed on the acquisition of Furmacy, Inc. (“Furmacy”). The acquisition was an all stock transaction whereby consideration was satisfied through the issuance 90,000 shares of Wag! common stock which was valued at $283 thousand, based on the fair value of the securities on their date of issuance. The acquisition was not material. Furmacy empowers veterinary clinics with easy-to-use pharmacy software, giving them the ability to prescribe pet medication instantly and have it delivered to the Pet Parents’ door the same-day, and usually in less than a few hours, from a local warehouse. For detail regarding the goodwill and intangible assets recognized as a result of the acquisition, refer to Note 6 - Goodwill and Intangible Assets of Notes to the Consolidated Financial Statements.
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Revenue and Contract Liabilities |
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue and Contract Liabilities | Revenue and Contract Liabilities Revenue The following table presents the Company’s revenues disaggregated by offering (in thousands):
Contract liabilities The timing of services revenue recognition may differ from the timing of invoicing to or collections from customers. The Company’s contract liabilities balance, which is included in gift card and subscription liabilities on the balance sheets is primarily comprised of unredeemed gift cards, prepayments received from consumers for Wag! Premium subscriptions, and certain consumer credits for which the revenue is recognized over time as they are used for services on our platform. The contract liabilities balance was $2.2 million and $1.9 million as of December 31, 2022 and December 31, 2021, respectively. Revenues recognized for the years ended December 31, 2022 and 2021 related to the Company’s contract liabilities as of the beginning of the year was $0.3 million and $0.1 million, respectively.
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Fair Value Measurements The Company’s financial assets that are measured at fair value on a recurring basis, by level within the fair value hierarchy, are as follows (in thousands):
Unrealized gains and losses for the three and years ended December 31, 2022 and 2021 are immaterial. Forward Share Purchase Agreements Liability On November 9, 2022, the Company settled the derivative liability associated with the Forward Share Purchase Agreements ("FPAs") by repurchasing 1,438,378 shares of common stock at $10.30 on the settlement date. The fair value on the settlement date for the exercised FPAs was $10.9 million and was equal to the intrinsic value of the put option on the settlement date (November 9, 2022). The intrinsic value was calculated using an exercise price of $10.30 per share and stock price of $2.71 per share. As described in Note 3 - Business Combinations, the Company entered into an Amended Agreement with one investor for 955,000 shares prior to the original settlement date. The investor did not elect to sell its shares to the Company as of the extension date and, the FPA expired unexercised, and the liability was effectively settled for no consideration. As such, the fair value of this FPA was $0 upon settlement, and the Company reversed the previously recorded liability balance as of the last measurement date and recognized a $7.8 million gain on fair value of derivative liability on the consolidated statement of operations in the fourth quarter. As described above, the derivative liability was remeasured to its intrinsic value at the date the underlying shares were repurchased or settled unexercised. Based on the above, $5.0 million was recognized as a net loss within change in fair value of derivative liability on the consolidated statements of operations in 2022. The net loss is comprised of a $13.7 million loss recognized in the third quarter of 2022, a $0.9 million gain upon settlement on November 9, 2022, and a $7.8 million gain recognized upon the extended settlement date of November 23, 2022. The liability for the FPAs was valued using a Black-Scholes Option Pricing formula, except upon settlement in which the fair value was used, which is considered to be a Level 3 fair value measurement. The fair value of the FPAs are based on the current stock price and a weighted average of historical volatilities from select benchmark companies. The following table presents the quantitative information regarding Level 3 fair value measurements of the Forward Purchase Agreements as of the following dates:
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Goodwill and Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 31, 2021, respectively (in thousands):
__________________ (1)On October 24, 2022, the Company acquired Furmacy Inc. (“Furmacy”) for strategic opportunities related to expansion opportunities into the overall Pet Industry via the vet care and product sales channel. At December 31, 2022, goodwill related to the acquisition of Furmacy was $24 thousand. See Note 3 - Business Combinations for additional detail. Intangible Assets The gross book value and accumulated amortization of intangible assets were as follows (in thousands):
Included in intangible assets is $49 thousand of indefinite-lived intangible assets, which are not subject to amortization. The weighted average amortization period remaining as of December 31, 2022 for each class of intangible assets were as follows (in years):
Amortization expense related to acquired intangible assets for the year ended December 31, 2022 was $0.5 million. The Company did not recognize any intangible asset impairment losses during the year ended December 31, 2022. Based on the amounts recorded a December 31, 2022 the Company estimates intangible asset amortization expense in each of the years ending December 31 as follows (in thousands):
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Property and Equipment, Net |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, consists of the following (in thousands):
Depreciation and amortization expenses were $571 thousand and $388 thousand in 2022 and 2021, respectively.
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||
| Leases | Leases Operating Leases The Company leases its facilities under non-cancelable lease agreements which expire between 2022 and 2026. Certain of these arrangements have free rent, escalating rent payment provisions, lease renewal options, and tenant allowances. Rent expense is recognized on a straight-line basis over the noncancellable lease term. In April 2019, the Company entered into a non-cancellable agreement to lease office space in Mountain View, California. The lease is a two-year operating lease, which includes scheduled rent escalations during the lease term. The Company had an option to extend the lease through 2025, although the Company did not exercise the option and the lease expired in the third quarter of 2022. In February 2020, the Company entered into a non-cancellable sublease agreement for its Mountain View office space. The sublease agreement commenced on April 1, 2020. Under the term of the sublease agreement, the Company received $2.0 million in base lease payments plus reimbursement of certain operating expenses over the term of the sublease, which ended in July 2022. During the years ended December 31, 2022 and 2021, the Company recognized $0.5 million and $0.9 million, respectively, of sublease income under this agreement. In February 2020, the Company entered into a non-cancellable agreement to lease additional office space in Mountain View, California for a one-year period. There was no option to extend the lease. In November 2021, the Company entered into a non-cancellable agreement to lease office space in Phoenix, Arizona for a 21-month period. The lease contains an escalation clause and free rent. The monthly base rent will be $10.4 thousand for months two through thirteen and will increase by approximately 1.9% over the initial term. There is no option to extend the lease. The Company's corporate headquarters are located in San Francisco, California, pursuant to an operating lease that was to expire in August 2023. On October 28, 2022, the lease agreement was amended to extend for a period of 30 months through February 28, 2026. The monthly base rent will be $20.4 thousand for the first year and will increase by 3.0% per year over the initial term. As a result of the Furmacy acquisition on October 24, 2022, the Company assumed two real-estate operating leases for their headquarter location in El Dorado Hills, California. The leases are separate and distinct for office space and warehouse use. The remaining lease term as of the acquisition date was 13 months for each lease. The Company measured the lease liabilities at the present value of the remaining lease payments, as if each acquired lease was a new lease of the Company at the acquisition date. There is no option to extend the leases further. Non-cash activities involving Right of Use ("ROU") assets, including the impact of adopting the new lease standard on January 1, 2022, were $0.5 million in assets and $0.5 million in liabilities. Operating lease expense under ASC 842 for leased facilities was $0.4 million, net of sublease income of $0.5 million, and variable lease costs were $0.1 million for the year ended December 31, 2022. Rent expense for operating leases, as previously reported under former lease accounting standards, net of sublease income, was $2.6 million for the year ended December 31, 2021. As of December 31, 2022, the future minimum lease payments required under operating leases were as follows (in thousands):
The weighted average remaining lease term and the weighted average discount rate of the Company’s operating leases is 2.3 years and 8.6% at December 31, 2022. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.
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Commitments and Contingencies |
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Dec. 31, 2022 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Legal and other contingencies From time to time, the Company is party to litigation and subject to claims, including non- income tax audits, in the ordinary course of business. The Company follows a thorough process to estimate the reasonably possible loss or range of loss, and only if the Company is unable to make such an estimate does the Company conclude and disclose that an estimate cannot be made. Accordingly, unless otherwise indicated below, a reasonably possible loss or range of loss associated with any individual contingency cannot be estimated. The Company accrues an estimate for the probable loss or a range of loss when management believes information available to it indicates that the amount of loss can be reasonably estimated. The Company adjusts its estimated accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case. Legal costs are expensed as incurred. Although the results of litigation and claims cannot be predicted with certainty, management concluded that there was not a reasonable probability that it would incur a reasonably estimable material loss related to such loss contingencies. Given the inherent uncertainties of litigation, the ultimate outcome of ongoing matters cannot be predicted with certainty. Litigation is inherently unpredictable, but the Company believes it has valid defenses with respect to the legal matters pending against it. Nevertheless, the consolidated financial statements could be materially adversely affected in a particular period by the resolution of one or more of these contingencies. Regardless of the outcome, litigation can have an adverse impact on the Company because of judgment, defense, and settlement costs, diversion of management resources, and other factors. Liabilities established to provide for contingencies are adjusted as further information develops, circumstances changes, or contingencies are resolved; such changes are recorded in the accompanying statements of operations during the period of the change and reflected in accrued and other current liabilities on the accompanying consolidated balance sheets. The Company has been and continues to be involved in numerous legal proceedings related to Pet Caregiver classification. In California, Assembly Bill No. 5 (AB-5) implemented a presumption that workers are employees. However, AB-2257 exempts agencies providing referrals for certain animal services, including dog walking, from AB-5. The Company believes that it falls within this exemption. Nevertheless, the interpretation or enforcement of the exemption could change. In August 2018, the New York State Department of Labor (“DOL”) issued an Investigation Report assessing the Company with approximately $250,000 in unemployment insurance contributions for our independent contractors. In May 2021, the Unemployment Insurance Appeal Board affirmed its decision sustaining the Department’s assessment. Interest continues to accrue on this assessment. As of December 31, 2022, the Company’s liability related to this matter is $248 thousand. In November 2019, California issued an assessment alleging various violations and penalties related to alleged misclassification of pet caregivers who use the Company’s platform as independent contractors. The Company has challenged both the legal basis and the amount of the assessment, of $1.7 million in unemployment insurance contributions for our independent contractors. In April 2022, the California Employment Development Department ("CA EED") initiated a routine employment tax audit of the Company. We are engaged in ongoing discussions with the CA EDD, including providing additional data that has been requested, in order to determine what, if any, additional assessments are warranted. CA EDD alleges the Company owes approximately $1.3 million in unemployment insurance contributions for our independent contractors. In response we submitted a Petition for Reassessment and intend to defend ourselves vigorously in this pending matter. The Company believes given the inherent uncertainties of litigation, the outcome of this matter is not considered probable nor estimable and, therefore, the Company has not recorded a reserve. The Company is subject to audits by taxing authorities and other forms of investigation, audit, or inquiry conducted by federal, state, or local governmental agencies. Due to the inherent uncertainties in the final outcome of such matters, the Company can give no assurance that it will prevail in such matters, which could have an adverse effect on the Company’s business. In addition, the Company may be subject to greater risk of legal claims or regulatory actions as it increases and continues its operations in jurisdictions where the laws and regulations governing online marketplaces or the employment classification of service providers who use online marketplaces are uncertain or unfavorable. As of December 31, 2022 and 2021, management did not believe that the outcome of pending matters would have a material adverse effect on the Company’s financial position, results of operations, or cash flows.
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Debt |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt PPP Loan In August 2020, the Company received loan proceeds of $5.1 million from a financial institution pursuant to the Paycheck Protection Program (the “PPP Loan”) as administered by the U.S. Small Business Administration (the “SBA”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The application for these funds required the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further required the Company to take into account its then current business activity and its ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, was dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on its adherence to the forgiveness criteria. In August 2021, the Company applied for forgiveness of $3.5 million of the PPP Loan, and in September 2021, the SBA approved the Company’s loan forgiveness application in the amount of $3.5 million. The term of the PPP Loan is five years with a maturity date of August 2025 and contains a fixed annual interest rate of 1.00% Principal and interest payments began in November 2021. As of December 31, 2022, the outstanding principal balance was $1.2 million. Blue Torch Financing and Warrant Agreement On August 9, 2022, the Legacy Wag! entered into a financing agreement and warrant agreement with Blue Torch Finance, LLC (together with its affiliated funds and any other parties providing a commitment thereunder, including any additional lenders, agents, arrangers or other parties joined thereto after the date thereof, collectively, the “Debt Financing Sources”), pursuant to which, among other things, the Debt Financing Sources agreed to extend an approximately $32.17 million senior secured term loan credit facility (the “Credit Facility”). Legacy Wag! is the primary borrower under the Credit Facility, the Company is a parent guarantor and substantially all of the Company’s existing and future subsidiaries are subsidiary guarantors. The Credit Facility is secured by a first priority security interest in substantially all assets of the Company and the guarantors. The Credit Facility bears interest at a floating rate of interest equal to, at Legacy Wag’s option, Secured Overnight Financing Rate ("SOFR") plus 10.00% per annum or the reference rate plus 9.00% per annum, with the reference rate defined as the greatest of: •2.00% per annum; •the federal funds effective rate plus 0.50% per annum; •one-month SOFR plus 1.00% per annum; and •the prime rate announced by the Wall Street Journal from time to time. SOFR will be subject to a floor of 1.00% per annum, and the reference rate will be subject to a floor of 2.00% per annum. Interest will be payable in arrears at the end of each SOFR interest period (but at least every three months) for SOFR borrowings and quarterly in arrears for reference rate borrowings. The Credit Facility matures in three years after the Closing Date, and will be subject to quarterly amortization payments of principal, in an aggregate amount equal to 2.00% of the principal amount of the Credit Facility in the first year after closing, 3.00% of the principal amount of the Credit Facility in the second year after closing and 5.00% of the principal amount of the Credit Facility in the third year after closing. The remaining outstanding principal balance of the Credit Facility will be due and payable in full on the maturity date. In addition to scheduled amortization payments, the Credit Facility contains customary mandatory prepayment provisions that require principal prepayments of the Credit Facility upon certain triggering events, including receipt of asset sale proceeds outside of the ordinary course of business, receipt of certain insurance proceeds and receipt of proceeds of non-permitted debt. The Credit Facility may also be voluntarily prepaid at any time, subject to the payment of a prepayment premium. The prepayment premium is payable for voluntary payments and certain mandatory prepayments, and is equal to an interest make-whole payment plus 3.00% of the principal amount of such prepayment in the first year after closing, 2.00% of the principal amount of such prepayment in the second year after closing, and 0% thereafter. No interest make-whole payment is due after the first year. The Credit Facility contains customary representations and warranties, affirmative covenants, financial reporting requirements, negative covenants and events of default. The negative covenants included in the Financing Agreement impose restrictions on the ability of Legacy Wag, the guarantors and their subsidiaries to incur indebtedness, grant liens, make investments, make acquisitions, declare and pay restricted payments, prepay junior or subordinated debt, sell assets and enter into transactions with affiliates, in each case, subject to certain customary exceptions. Legacy Wag’s obligations under the Blue Torch Financing Agreement are guaranteed by certain of its subsidiaries meeting materiality thresholds set forth in the Blue Torch Financing Agreement (the "Financing Agreement"). Such obligations, including the guarantees, are secured by substantially all of the personal property of the Company and its subsidiary guarantors, including pursuant to a Security Agreement entered into on August 9, 2022. The Blue Torch Financing Agreement establishes the following financial covenants: (i) Legacy Wag's trailing annual aggregate revenue shall exceed certain thresholds as of the end of each monthly computation period as defined therein; and (ii) Liquidity shall not be less than $5 million at any time. Legacy Wag! was in compliance with all covenants as of December 31, 2022. The facility was fully drawn upon as of December 31, 2022. The Company has incurred $0.6 million in interest expense as of December 31, 2022 at an annual interest rate of 12.95%. As of December 31, 2022, the outstanding principal balance was $26.2 million, net of discount of $7.0 million. On the closing of the Credit Facility, Legacy Wag! also entered into the Lender Warrant Agreement with Vstock Transfer, LLC as warrant agent, pursuant to which affiliates of Blue Torch Capital LP (“Blue Torch”) received 1,896,177 warrants to acquire common stock of the Company, par value $0.0001 per share (“Common Stock”), for $11.50 per whole share (such warrants, the “Lender Warrants”). The Lender Warrants were issued pursuant to the SPAC Warrant Agreement (as defined in the Business Combination Agreement) and are subject to the terms and conditions thereof, as modified (whether reflected in the terms of the Lender Warrants issued on the Merger Date, or in an amendment to or exchange for the Lender Warrants consummated after the Merger Date) to provide that (i) the exercise period of the Lender Warrants will terminate on the earliest to occur of (x) the date that is ten years after completion of the Business Combination, (y) liquidation of the Company, and (z) redemption of the Lender Warrants as provided in the SPAC Warrant Agreement (the “Lender Warrant Expiration Date”), (ii) Blue Torch has the ability to net exercise the Lender Warrants (based on the fair value of the stock at the time of net exercise, fair value being equal to the public trading price at the time of exercise) on a cashless basis, (iii) Blue Torch received the benefit of certain customary representations and warranties from the Company, and (iv) the Lender Warrants are not required to be registered under the Securities Act. We classify the Lender Warrants as equity on our consolidated balance sheet as of December 31, 2022. As the Warrants are classified as equity instruments, the Company will not remeasure the Warrants each accounting period. The Company estimated the fair value of warrants exercisable for common stock using the Black-Scholes option valuation model. The Black-Scholes option valuation model inputs are based on the estimated fair value of the underlying common stock at the valuation measurement date, the remaining contractual term of the warrant, the risk-free interest rates, the expected dividends, and the expected volatility of the price of the Company’s underlying stock. These estimates, especially the expected volatility, are highly judgmental and could differ materially in the future.
As the Lender Warrants are not liability classified instruments, the proceeds were allocated based on the relative fair values of the financial instruments issued as a whole. Future minimum payments of the principal on the Company’s outstanding obligations as of December 31, 2022 were as follows (in thousands):
Letters of Credit As of December 31, 2022 and 2021, the Company had letters of credit outstanding of $0 and $0.8 million included in other assets on the Company’s consolidated balance sheet, respectively.
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Stockholders' Equity (Deficit) and Mezzanine Equity |
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| Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity (Deficit) and Mezzanine Equity | Stockholders’ Equity (Deficit) and Mezzanine Equity Accumulated Other Comprehensive Income (Loss) Changes to accumulated other comprehensive income (loss) for the year ended December 31, 2022 and 2021 were immaterial. Preferred Stock On January 28, 2022, The Company issued 1.1 million convertible preferred shares (“Series P”) in exchange for $11 million of cash. Series P was issued on substantially similar terms to the Company’s other convertible preferred share issuances, except for the Series P convertible share agreement contained an adjustment provision that provided for additional shares to be issued based on a formula if the proposed Merger was not completed, as defined the Company’s Amended and Restated Certificate of Incorporation. Upon consummation of the Merger, the Series P Shares converted into the Company’s common stock on a one-for-one basis. In connection with the Merger, all redeemable convertible preferred stock had been converted to common stock of the Company. As such, all outstanding shares of Legacy Wag!’s preferred stock, except for Legacy Wag! Series P Shares (as described above), were converted into shares of the Company’s common stock, par value $0.0001 per share, at the then-effective conversion rate of approximately 0.97. The Company had outstanding redeemable preferred stock as follows. The amounts in the table below have been adjusted to reflect the exchange ratio (approximately 0.97 shares of the Company’s common stock for each share of Legacy Wag! common stock) established in the Merger:
Pursuant to the Company’s certificate of incorporation, the Company is authorized to issue 1,000,000 shares of preferred stock having a par value of $0.0001 per share. The Company’s board of directors has the authority to issue preferred stock and to determine the rights, preferences, privileges, and restrictions, including voting rights, of those shares. As of December 31, 2022, no shares of preferred stock were issued and outstanding. Common Stock As December 31, 2022 and December 31, 2021, the Company had authorized 110,000,000 and 43,763,126 shares of common stock (“common stock”) at a par value of $0.0001 per share, respectively. As of December 31, 2022 and December 31, 2021, 36,849,076 and 6,121,253 shares of the Company’s common stock were issued and outstanding, respectively. For periods prior to the Merger, the reported share and per share amounts have been retroactively converted by the applicable exchange ratio of approximately 0.97 with the exception of the authorized shares and shares reserved for issuance. Stock Compensation Plans 2014 Stock Option Plan Under the Company’s 2014 Stock Option Plan (the “2014 Plan”), options were granted at fair value, and generally vest over four years and expire in ten years. The 2014 Plan provided for the grant of incentive stock options (“ISOs”), nonqualified stock options (“NSOs”), and other stock awards, or collectively, “stock awards”. The 2014 Plan allowed ISOs to be granted only to Legacy Wag!’s employees and the employees of Legacy Wag!’s parents or affiliates. The 2014 Plan allowed all other awards to be granted to Legacy Wag!’s employees, non-employee directors and consultants and the employees and consultants of Legacy Wag!’s parent or affiliates. The Company has granted stock options and restricted stock units (“RSUs”) under the 2014 Plan. In connection with the consummation of the Merger and following the Acquisition Closing, each option converted into an option to purchase shares of Wag! common stock. As of the Acquisition Closing, the Company no longer grants options under the 2014 Plan. Omnibus Incentive Plan The Wag! Group Co. 2022 Omnibus Incentive Plan (the “Omnibus Incentive Plan”) was adopted by the stockholders in connection with the Merger and became effective upon the Acquisition Closing. The Omnibus Incentive Plan replaced the 2014 Plan which expired as to future grants as of the effective date of the Merger. The maximum aggregate number of shares (subject to adjustment) of our common stock reserved for issuance under the Omnibus Incentive Plan is 6,378,729. Additionally, the number of shares of Wag! common stock reserved for issuance under the Omnibus Incentive Plan will automatically increase on January 1st of each year, beginning on January 1, 2023 and continuing through and including January 1, 2032, in an amount equal to (i) a maximum of 10% of Wag! common stock outstanding as of each December 31st of the preceding calendar year or (ii) a lesser amount as determined by the Board. The 2022 Plan allows for the issuance of ISOs, NSOs, restricted stock awards, stock appreciation rights, restricted stock units (“RSUs”), and performance awards. The Board of Directors determines the period over which options become exercisable and options generally vest over a or -year period. The Company has not granted any stock options under this plan as of December 31, 2022. The Company granted 4.1 million RSUs under this plan as of December 31, 2022. Employee Stock Purchase Plan The Company sponsors the Wag! Group Co. Employee Stock Purchase Plan (the “ESPP”) which was adopted by the stockholders in connection with the Merger and became effective upon the Acquisition Closing. Under this plan, eligible employees have the opportunity to purchase shares of common stock at a discount through accumulated contributions of their earned compensation. The ESPP’s initial share reserve is 6,378,729 shares of common stock. Although effective, offering periods will not commence under the ESPP until determined by the Board or the compensation committee. The ESPP provides a significant incentive by allowing employees to purchase shares of common stock at a discount. Accordingly, the plan is a non-compensatory plan. As of December 31, 2021, there were 6,378,729 shares available for future issuance as the plan has yet to commence. A summary of the Company’s option activity under the 2014 Plan is as follows:
The weighted-average grant date fair value of options granted during the year ended December 31, 2021 was $0.03 per option. The estimated grant date fair values of employee stock-based options were calculated using the Black-Scholes valuation model, based on the following assumptions. Since the Company does not a history of paying dividends, the expected dividend yield is 0%.The Company did not grant any options in 2022.
As of December 31, 2022, the aggregate stock compensation expense remaining to be amortized was $59.4 thousand related to stock options. The Company expects this compensation balance to be recognized over a weighted average of 1.44 years. The Company does not currently expect to continue to issue stock option awards to its employees in future periods. Includes the impact of $23.9 million of stock-based compensation charges recorded to additional-paid in capital related to Earnout Shares of New Wag! Common Stock in the third quarter of 2022. Since the Earnout awards are issued to the Eligible Company Equityholders and management as of the date of the merger without any requirement of future service obligations, the Company recorded a stock-based compensation entry reflected in the consolidated balance sheets as well as the income statement of the entire Earnout award fair value. Restricted Stock The Company accounts for restricted stock issued to employees at fair value, based on the market price of stock on the date of grant. The Company recognizes the expense on straight-line basis over the requisite service period and recognizes forfeitures as they occur. The fair value of restricted stock units awarded are measured at the grant date. Almost all restricted stock was issued to founders or employees of the Company. A summary of restricted stock activity for the years ended December 31, 2022 is as follows:
As of the years ended December 31, 2022 and 2021 there was $9.8 million and $14.0 thousand of unrecognized expense related to unvested restricted stock. The Company expects this compensation balance to be recognized over a weighted average of 2.69 years. The following table summarizes the total stock-based compensation expense by function for the year ended December 31, 2022 and 2021 (in thousands).
Common Stock Warrants Legacy Wag! Common Warrants Prior to January 2019, the Company granted 91,310 warrants to purchase common stock. The weighted average exercise price for the warrants were $1.54, and the term of the warrants were 10 years. The warrants were valued on the date of grant using the Black-Scholes Merton option pricing model. Upon consummation of the Merger, these warrants were unexercised at the date of the Merger and, as a result, were adjusted using an exchange ratio of 0.97 for Legacy Wag! Common Warrants. Subsequent to the Business Combination, the two Legacy Wag! holders net exercised their warrants on a cashless basis for 72,434 shares. A summary of Legacy Wag! common stock warrants outstanding as of December 31, 2022 and December 31, 2021 is as follows:
_________________ *The shares of the Company's warrants have been retroactively adjusted as shares reflecting the exchange ratio. CHW Public and Private Placement Warrants Prior to the Merger, CHW issued 12,500,000 of Public Warrants and 4,238,636 of Private Warrants together the Warrants, (the “Warrants”), respectively, in connection with its initial public offering to CHW Acquisition Sponsor, LLC, the sponsor of CHW. After consummation of the Merger on August 9, 2022, the 4,238,636 Private Warrants held by the Sponsor were exchanged for 3,895,564 warrants to purchase shares of common stock of the Company issuable upon the exercise of Private Placement Warrants. Additionally, 12,500,000 shares of common stock that are issuable upon the exercise of Public Warrants remained outstanding. Each whole warrant entitles the registered holder to purchase one share of common stock at a price of $11.50 per share, subject to adjustment, at any time commencing on September 8, 2022, which was the later of 30 days after the completion of the Business Combination or 12 months from CHW's IPO closing date. The Warrants will expire on the fifth anniversary of the Business Combination, or earlier upon redemption or liquidation. The Warrants issued pursuant to the CHW's IPO qualify for equity accounting treatment. The Warrants were not subject to revaluation at the Merger Date, and as such, the original valuation performed by CHW in connection with its IPO in September 2021 still apply. The following table provides quantitative information regarding fair value measurements at issuance on September 1, 2021:
The fair value as of September 1, 2021 was $1.32 per share. As of December 31, 2022, the Company has 12,500,000 of Public Warrants and 3,895,564 of Private Warrants outstanding respectively. The Company may call the Warrants for redemption: •in whole or in part; •at a price of $0.01 per warrant; •upon a minimum of 20 days’ prior written notice of redemption; and •if, and only if, the reported last sale price of the Public Shares equals or exceeds $16.50 per share (as adjusted for share subdivisions, share consolidations, share capitalizations, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders. If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the public warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of common stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend, recapitalization, reorganization, merger or consolidation. However, the Warrants will not be adjusted for issuance of common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants.
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes The Company’s provision for income taxes for the years ended December 31, 2022 and 2021 was an expense of $13 thousand and benefit of $793 thousand, respectively. The provision for income taxes consisted of $19.8 thousand in deferred U.S. federal income tax and $1.5 thousand in deferred state income tax for the year ended December 31, 2022. The Company files federal and state income tax returns with varying statutes of limitations. The tax years from 2015 to 2022 remain open to examination. As of December 31, 2022, no examination is in progress in federal or state jurisdictions. The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows:
The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):
The valuation allowance increased by $4.5 million for the year ended December 31, 2022, compared to the increase of $1.6 million for the year ended December 31, 2021. The Company believes that, based on a number of factors, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets such that a valuation allowance has been recorded. These factors include the Company’s history of net losses since its inception. No uncertain tax positions have been identified. As of December 31, 2022, the Company had U.S. federal and state net operating loss carryforwards of approximately $209 million and $178 million, respectively. The federal net operating loss carryforwards generated as of December 31, 2017 of $24.4 million will expire in 2037, while $184.6 million federal net operating loss carryforwards generated in post December 31, 2017 or later do not expire due to the provisions in the Tax Cuts and Jobs Act, but may only offset 80% of taxable income in periods of future utilization. The state net operating loss carryovers will begin to expire in 2038 and will continue to expire through 2042. The Company has experienced ownership changes within the meaning of Sec. 382 of the Internal Revenue Code (“IRC”) at various dates from 2015 through 2019. Based on the Sec. 382 study, the Company has determined that $35.3 million federal and $37.6 million California net operating losses are subject to Sec. 382 limitations, respectively. The Company files returns with the U.S. federal government, and various state jurisdictions. The Company’s returns have been, and could in the future, subject to examination which may, or may not, have an impact to the consolidated financial statements
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| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Loss per share | Loss per share The following table shows the computation of basic and diluted earnings per share for December 31, 2022 and December 31, 2021 (in thousands, except share data):
The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows:
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401(k) Plan |
12 Months Ended |
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Dec. 31, 2022 | |
| Retirement Benefits [Abstract] | |
| 401(k) Plan | 401(k) PlanIn 2019, the Company adopted a 401(k) Plan that qualifies as a deferred salary arrangement under Section 401 of the IRC. Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowable. The Company incurred expenses related to the 401(k) match of $60 thousand during the year ended December 31, 2022, no amounts were contributed to the plan in 2022 but are expected to be contributed in the first quarter of 2023. The Company did not make any contributions to the plan during the year ended December 31, 2021. |
Subsequent Events |
12 Months Ended |
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Dec. 31, 2022 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events Acquisition of Dog Food Advisor On January 5, 2023, the Company announced the successful completion of its acquisition of Dog Food Advisor assets from Clicks and Traffic LLC (“Dog Food Advisor”) for cash consideration of $9.0 million. The acquisition was previously announced on January 3, 2023 and will expand Wag!’s reach into the Pet Food and Treats market of the pet industry. As the transaction recently closed, the Company is in the process of completing the purchase price accounting related to the business combination. We anticipate that a significant portion of the purchase consideration will be allocated to acquired intangible assets, specifically technology, and goodwill. We expect the preliminary purchase price accounting to be completed when all information on facts and circumstances that existed as of the acquisition date become available, but not to exceed 12 months following the acquisition date. Expiration of Lock-Up Agreement In connection with the Business Combination Agreement, on the Merger Date, CHW and certain Legacy Wag! stockholders entered into a lock-up agreement (the “Lock-Up Agreement”). Additionally, the Company's Bylaws provides for similar restrictions on other Legacy Wag! stockholders (collectively with the Lock-Up Agreement, the "Lock-Up Restrictions"). Pursuant to the Lock-Up Restrictions, such stockholders were subject to transfer restrictions during the period beginning on the Merger Date and ending on the date that is the earlier of (i) 180 days after the Merger Date and (ii) the date on which Wag! completes a liquidation, merger, capital stock exchange, reorganization or other similar transactions that result in all of Wag!’s stockholders having the right to exchange their shares for cash, securities or other property (the “Lock-Up Period”). On February 5, 2023, the Lock-Up Period expired and the Lock-Up Restrictions were removed.
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||||||||||||||||||||
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| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
| Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The Company has prepared the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). For periods prior to the Merger, the reported share and per share amounts have been retroactively converted by the applicable exchange ratio with the exception of the authorized shares and shares reserved for issuance. The shares and per share amounts, prior to the Merger, have been retroactively restated as shares reflecting conversion at the exchange ratio of 0.97 established in the Business Combination Agreement. See Note 3—Business Combinations for additional information.
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| Segments | Segments Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance of the Company. As such, the Company has determined that it operates as one operating segment within the United States.
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| Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and disclosures as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company bases its estimates on various factors, including historical experience, and on various other assumptions that are believed to be reasonable under the circumstances, when these carrying values are not readily available from other sources. Significant items subject to estimates and assumptions include, but are not limited to, fair values of financial instruments, valuation of stock-based compensation and warrants, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed in business combinations and the valuation allowance for deferred income taxes. Actual results may differ from these estimates.
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| Business Combinations | Business Combinations The Company accounts for business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, especially with respect to the valuation of intangible assets. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
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| Certain Significant Risks and Uncertainties | Certain Significant Risks and Uncertainties The Company has experienced negative cash flows since inception and had an accumulated deficit of $148.4 million and $109.9 million as of December 31, 2022 and December 31, 2021, respectively. Historically, the Company has primarily financed its operations through equity and debt financings. The Company intends to finance its future operations through its existing cash and investments. The Company believes that these sources of liquidity will be sufficient to meet its operating needs for at least the next 12 months. Since December 2019, the coronavirus (“COVID-19”) has spread throughout the United States and in many other countries globally. The extent to which the Company’s operations will continue to be impacted by the COVID-19 pandemic will depend largely on future developments including the emergence of new variants and actions by government authorities and private businesses to contain new outbreaks of the pandemic or respond to its impact, among other things. The COVID-19 pandemic has impacted our business operations, results of operations, financial position, liquidity, and cash flows. The Company’s revenues in 2021 decreased compared to the pre-COVID revenues, and, although the 2022 fiscal year as seen the highest quarterly revenue since inception, the extent of the impact of the pandemic on our business and financial results will depend largely on future developments both globally and within the United States, including the impact on capital, foreign currencies exchange and financial markets, governmental or regulatory orders that impact our business and whether the impacts may result in permanent changes to our end-user’ behavior, all of which are highly uncertain and cannot be predicted.
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| Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist primarily of cash on deposit as well as investments in money market funds that are readily convertible into cash and purchased with original maturities of three months or less.
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| Investments | InvestmentsInvestments consist mainly of short-term U.S. government and agency securities, commercial paper, and corporate bonds. The Company invests in a diversified portfolio of investments and limits the concentration of its investment in any particular security. Securities with original maturities greater than three months, but less than one year, are included in current assets. All investments are classified as available-for-sale and reported at fair value with unrealized gains and losses reported as a component of accumulated other comprehensive loss in stockholders’ equity. Management judges whether a decline in value is temporary based on the length of time that the fair market value has been below cost and the severity of the decline. | ||||||||||||||||||||||||||||||
| Accounts Receivable | Accounts Receivable Accounts receivable primarily represent amounts charged but not yet received by the balance sheet date, This includes amounts charged by payment processors on behalf of the Company that are in the process of clearing. These amounts are generally cleared in one to three business days. Additionally includes accounts receivable recorded for commission fees earned but not yet received from third parties in connection with Wag! Wellness services. Substantially all accounts receivable are collected and bad debt expense or the allowance for doubtful accounts were not material.
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| Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. The estimated useful lives are as follows:
Maintenance and repair costs are charged to expense as incurred.
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| Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment at least annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. Our annual impairment test is performed in the fourth quarter of each year and the Company’s impairment tests are based on a single operating segment and reporting unit structure. Prior to performing a quantitative evaluation, an assessment of qualitative factors may be performed to determine whether it is more likely than not that the fair value of the reporting unit exceeds its carrying value. If the carrying value of the reporting unit exceeds its fair value, an impairment charge is recognized for the excess of the carrying value of the reporting unit over its fair value.
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| Intangible Assets, Net | Intangible Assets, Net Intangible assets are recorded at fair value as of the date of acquisition and amortized on a straight- line basis over their estimated useful lives.
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| Impairment of Intangible Assets | Impairment of Intangible Assets The Company reviews its definite-lived intangibles and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the anticipated undiscounted future net cash flows to the carrying value of the asset or asset group.
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| Software Development Costs | Software Development Costs The Company incurs costs related to the development of its technology platform. The Company will begin to capitalize costs related to technology development when preliminary development efforts are successfully completed, management has authorized and committed project funding, it is probable that the project will be completed, and the technology will be used as intended. Such costs are amortized on a straight-line basis over the estimated useful life of the related asset, which is generally three years. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed. Costs incurred for significant enhancements that are expected to result in additional functionality are capitalized and expensed over the estimated useful life of the upgrades. Capitalized development costs are included in property and equipment, net, in the balance sheets, and amortization expense is included in depreciation and amortization in the statements of operations.
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| Stock-Based Compensation | Stock-Based Compensation The Company has an equity incentive plan under which it grants equity awards, including stock options. The Company determines compensation expense associated with stock options based on the estimated grant date fair value method using the Black-Scholes valuation model. The Black-Scholes model considers several variables and assumptions in estimating the fair value of stock-based awards. These variables include per share fair value of the underlying common stock at the measurement date, exercise price, expected term, risk-free interest rate, expected stock price volatility over the expected term, and expected annual dividend yield. For all stock options granted, the Company calculates the expected term using the simplified method as it has limited historical exercise data to provide a reasonable basis upon which to otherwise estimate expected term, and the options have characteristics of “plain-vanilla” options. The risk-free interest rate is based on the yield available on U.S. Treasury zero-coupon issues similar in duration to the expected term of the stock-based award. Due to the limited trading history of the Company’s common stock, the expected volatility assumption is generally based on volatilities of a peer group of similar companies whose share prices are publicly available. The Company will continue to apply this process until a sufficient amount of historical information regarding the volatility of its own common stock price becomes available. The Company utilizes a dividend yield of zero, as it has no history or plan of declaring dividends on its common stock. The Company recognizes share-based compensation expense, equal to the grant date fair value of stock options on a straight-line basis over the requisite service period. The Company accounts for forfeitures as they occur rather than on an estimated basis. Stock-based compensation expense for the years ended December 31, 2022 and 2021 has been reduced for actual forfeitures. In connection with the Business Combination, Legacy Wag! stockholders and certain members of management and employees of Legacy Wag! that held either a share of common stock, a Legacy Wag! option or a Legacy Wag! RSU Award (collectively "Eligible Company Equityholders") at the date of the Merger, have the contingent right to Earnout Shares as more fully described in Note 3 - Business Combinations. For Eligible Company Equityholders who were employees or members of management immediately prior to the completion of the Merger, the rights to the Earnout Shares fully vested on the Merger Date and represent a separate award from their existing share-based payment award. In addition, the rights of the Earnout awards are not dependent upon continued employment by the employee or management with the Company in order to receive the Earnout shares if the conditions of issuance are met in the future. The Company determined that the market condition will not affect the term over which the related compensation expense will be recorded because the employee is not required to be employed at the time the market condition is achieved in order to vest in the award. As such, all service conditions were met and, in accordance with ASC 718, Compensation - Stock Compensation (“ASC 718”), the company recorded a charge to stock compensation of $23.9 million on the Merger Date for the full fair value of the employee and management Earnout Shares awarded. Effective with the Merger of August 9, 2022, the Company's 2014 Stock Plan terminated and the Company only issues RSUs on a go-forward basis under the 2022 Omnibus Incentive Plan ("Omnibus Incentive Plan"). As of December 31, 2022, the Company has granted RSUs with service conditions. Service conditions that affect whether or not an award vests or becomes exercisable are not directly incorporated into the estimate of fair value at the grant date.
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| Income Taxes | Income Taxes The Company accounts for income taxes using an asset and liability approach, which requires the recognition of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the financial or tax returns. The measurement of the deferred items is based on enacted tax laws. In the event the future consequences of differences between financial reporting basis and the tax basis of assets and liabilities result in a deferred tax asset, the Company evaluates the probability of being able to realize the future benefits indicated by such asset. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that either some portion or the entire deferred tax asset will not be realized. The Company records a valuation allowance to reduce the deferred tax assets to the amount of future tax benefit that is more likely than not to be realized. We regularly review the deferred tax assets for recoverability based on historical taxable income or loss, projected future taxable income or loss, the expected timing of the reversals of existing temporary differences and tax planning strategies. Our judgment regarding future profitability may change due to many factors, including future market conditions and the ability to successfully execute the business plans and/or tax planning strategies. Should there be a change in the ability to recover deferred tax assets, our income tax provision would increase or decrease in the period in which the assessment is changed. The Company recognizes a tax benefit from uncertain tax positions only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authorities’ administrative practices and precedents. The tax benefits recognized from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being recognized upon settlement. The Company did not recognize any tax benefits from uncertain tax positions during the years ended December 31, 2022 and 2021.
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| Fair Value | Fair Value The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. In accordance with ASC 820, Fair Value Measurement (“ASC 820”), the Company uses the fair value hierarchy, which prioritizes the inputs used to measure fair value. Level 1 — Observable inputs such as quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs for which there are little or no market data and that are significant to the fair value of the assets or liabilities. The carrying amounts of financial instruments, including cash equivalents, investments, accounts receivable, accounts payable, and accrued liabilities approximate their respective fair value due to their short period of maturities.
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| Concentration of Credit Risk and Other Risks and Uncertainties | Concentration of Credit Risk Cash, cash equivalents, investments, and amounts at payment processors are potentially subject to concentration of credit risk. Such balances are maintained at financial institutions that management determines to be of high-credit quality. Cash accounts at each institution are insured by the Federal Deposit Insurance Corporation ("FDIC") up to certain limits. At times, such deposits may be in excess of the FDIC insurance limit. The Company has not experienced any losses on its deposits.Concentration Risks and Uncertainties Significant customers are those which represent more than 10% of the Company’s total revenue or accounts receivable balance at each balance sheet date. During the year ended December 31, 2022, the Company had two customers that accounted for 10% or more of total revenue. These customers each represented $7 million to $8 million of total revenue for the year ended December 31, 2022, and in aggregate, accounted for 27% of the Company’s total revenue for the year ended December 31, 2022. As of December 31, 2022, the Company had four customers that accounted for 10% or more of accounts receivable. In aggregate, these customers represented 65% of total accounts receivable as of December 31, 2022. During the year ended December 31, 2021, the Company did not have any customers that accounted for 10% or more of total revenue or accounts receivable. Based on the nature of third party partners, the Company does not anticipate any collectability issues with these receivables and closely monitors the outstanding receivables for payment within agreed upon time periods.
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| Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with its Customers. Through its Services offerings, the Company principally generates Service revenue from service fees charged to PCGs for use of the platform to discover pet service opportunities and to successfully complete a pet care service to a pet parent. The Company also generates revenue from subscription fees paid by Pet Parents for Wag! Premium, and fees paid by PCGs to join the platform. Additionally, through its Wellness offerings, the Company generates revenue through commission fees paid by third party service partners in the form of ‘revenue-per-action’ or conversion activity defined in our agreements with the third party service partner. For some of the Company’s arrangements with third party service partners, the transaction price is considered variable, and an estimate of the transaction price is recorded when the action occurs. The estimated transaction price used in the variable consideration is based on historical data with the respective third-party service partner and the consideration is measured and settled monthly. The Company enters into terms of service with PCGs and Pet Parents to use the platform (“Terms of Service Agreements”), as well as an Independent Contractor Agreement (“ICA”) with PCGs (the ICA, together with the Terms of Service Agreements, the “Agreements”). The Agreements govern the fees the Company charges the PCGs for each transaction. Upon acceptance of a transaction, PCGs agree to perform the services that are requested by a pet parent. The acceptance of a transaction request combined with the Agreements establishes enforceable rights and obligations for each transaction. A contract exists between the Company and the PCGs after both the PCGs and pet parent accept a transaction request and the PCGs ability to cancel the transaction lapses. For Wag! Wellness revenue, the Company enters into agreements with third party service partners which define the action by a pet parent that results in the Company earning and receiving a commission fee from the third-party service partner. Wag!’s service obligations are performed, and revenue is recognized for fees earned from PCGs related to the facilitation and completion of a pet service transaction between the pet parent and the PCG through the use of our platform. Revenue generated from the Company’s Wag! Premium subscription is recognized on a ratable basis over the contractual period, which is generally one month to one year from the payment of the subscription fee depending on the type of subscription purchased by the pet parent. Unused subscription amounts are recorded as gift card and subscription liabilities on the consolidated balance sheet. Revenue related to the fees paid by the PCG to join the platform are recognized upon processing of the applications. Wag! Wellness revenue performance obligation is completed, and revenue is recognized when an end-user completes an action or conversion activity. Principal vs. Agent Considerations Judgment is required in determining whether the Company is the principal or agent in transactions with PCGs and Pet Parents. The Company evaluated the presentation of revenues on a gross or net basis based on whether the Company controls the service provided to the pet parent and is the principal (i.e., “gross”), or whether the Company arranges for other parties to provide the service to the pet parent and is an agent (i.e. “net”). This determination also impacts the presentation of incentives provided to both PCGs and Pet Parents, as well as discounts and promotions offered to Pet Parents to the extent they are not customers. The Company’s role in a transaction on the platform is to facilitate PCGs finding, applying, and completing a successful pet care service for a pet parent. The Company has concluded it is the agent in transactions with PCGs and Pet Parents because, among other factors, the Company’s role is to facilitate pet service opportunities to PCGs and it is not responsible for nor controls the delivery of pet services provided by the PCGs to the Pet Parents. Gift Cards The Company sells gift cards that can be redeemed by Pet Parents through the platform. Proceeds from the sale of gift cards are deferred and recorded as contract liabilities in gift card and subscription liabilities on the balance sheets until Pet Parents use the card to place orders on our platform. When gift cards are redeemed, revenue is recognized on a net basis as the difference between the amounts collected from the purchaser less amounts remitted to PCGs. Unused gift cards are recorded as gift card and subscription liabilities on the consolidated balance sheet. Incentives The Company offers discounts and promotions to encourage use of the Company’s platform. These are offered in various forms of discounts and promotions and include: Targeted pet parent discounts and promotions: These discounts and promotions are offered to a limited number of Pet Parents in a specific market to acquire, re-engage, or generally increase Pet Parents’ use of the platform, and are akin to a coupon. The Company records the cost of these discounts and promotions as sales and marketing expenses at the time they are redeemed by the pet parent. Market-wide promotions: These promotions are pricing actions in the form of discounts that reduce the price Pet Parents pay PCGs for services. These promotions result in a lower fee earned by the Company from the PCG. Accordingly, the Company records the cost of these promotions as a reduction of revenues at the time the PCG service is completed. Discounts on services offered through our subscription program are also recorded as a reduction of revenues.
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| Cost of Revenues (exclusive of depreciation and amortization) | Cost of Revenues (exclusive of depreciation and amortization) Cost of revenues consists of costs directly related to revenue generating transactions, which primarily includes fees paid to payment processors for payment processing fees, hosting and platform-related infrastructure costs, third-party costs for background checks for Pet Caregivers, and other costs arising as a result of revenue transactions that take place on our platform, excluding depreciation and amortization.
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| Platform Operations and Support | Platform Operations and Support Platform operations and support expenses include personnel-related compensation costs of technology and operations teams, and third-party operations support costs.
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| Sales and Marketing | Sales and MarketingSales and marketing expenses include personnel-related compensation costs of the marketing team, advertising expenses, and pet parent incentives. Sales and marketing expenses are expensed as incurred. | ||||||||||||||||||||||||||||||
| General and Administrative | General and Administrative General and administrative expenses include personnel-related compensation costs for corporate employees, such as management, accounting, and legal as well as insurance and other expenses used to operate the business.
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| Depreciation and Amortization | Depreciation and Amortization Depreciation and amortization expenses primarily consist of depreciation and amortization expenses associated with the Company’s property and equipment. Amortization includes expenses associated with the Company’s capitalized software and website development, as well as acquired intangible assets.
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| Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes net income (loss) per common stock following the two-class method required for multiple classes of common stock and participating securities. The Company considers the redeemable preferred stock to be participating securities. The two-class method requires income (loss) available to common stockholders for the period to be allocated between multiple classes of common stock and participating securities based upon their respective rights to receive dividends as if all income (loss) for the period had been distributed. The holders of the Company’s redeemable preferred stock would be entitled to dividends in preference to common stockholders, at specified rates, if declared. Such dividends are not cumulative. Any remaining earnings would be distributed among the holders of redeemable preferred stock and common stock pro rata. Holders of the Company’s redeemable preferred stock are not contractually obligated to participate in the Company’s losses. As such, the Company’s net losses for the years ended December 31, 2022 and 2021 were not allocated to these participating securities. Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. The diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period. For periods in which the Company reports net losses, diluted net loss per common stock is the same as basic net loss per common stock, because all potentially dilutive securities are anti-dilutive.
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| Accounting for Warrants | Accounting for WarrantsThe Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the instruments are free standing financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common shares and whether the instrument holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent period end date while the instruments are outstanding. Management has concluded that the Public Warrants and Private Placement Warrants issued pursuant to the Business Combination qualify for equity accounting treatment. Additionally, the Company considers its warrants ("Lender Warrants") issued in conjunction with the Blue Torch Financing Arrangement (see Note 10 - Debt for additional detail) to be equity classified since they do not meet the liability classification criteria. | ||||||||||||||||||||||||||||||
| Forward Share Purchase Agreements | Forward Share Purchase AgreementsThe Company accounted for the Forward Share Purchase Agreements ("FPAs") as a liability under ASC 480, Distinguishing Liabilities from Equity, because it embodied an obligation to repurchase the Company’s shares by paying cash. Therefore, the option was classified as a current liability and is measured at fair value on the Company’s Consolidated Balance Sheets. The unrealized gains and losses from changes in the fair value of the FPAs is reflected in the Consolidated Statements of Operations. This liability was subject to re-measurement at each balance sheet date until exercised, and any change in fair value was recognized in our Consolidated Statement of Operations. As of December 31, 2022, all options under these agreements expired or were exercised. | ||||||||||||||||||||||||||||||
| Reclassifications | Reclassifications Certain reclassifications have been made to prior year financial information to conform to the current year presentation. In particular, certain Money market funds have been reclassified out of Short-term investments available for sale and into Cash and cash equivalents on the Consolidated Balance Sheet, and Statement of Cash Flows.
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| Recent Accounting Pronouncements Adopted and Accounting Standards Issued but Not Yet Adopted | Recent Accounting Pronouncements Adopted The Company has applied the option given to public companies to adopt new or revised accounting guidance as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) either (1) within the same time periods as those otherwise applicable to public business entities, or (2) within the same time periods as private companies, including early adoption when permissible. When permissible, the Company has elected to adopt new or revised accounting guidance within the same time period as private companies, as indicated below. On January 1, 2022, the Company adopted Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842). This standard requires lessees to recognize all leases with initial terms in excess of one year on their balance sheet as a right-of-use asset and a lease liability at the commencement date. The Company adopted the new leases standard utilizing the modified retrospective transition method, under which amounts in prior periods presented were not restated. For contracts existing at the time of adoption, the Company elected to not reassess (i) whether any are or contain leases, (ii) lease classification, and (iii) initial direct costs. The Company also elected the practical expedient to combine non-lease components and lease components for real estate leases. Upon adoption, the Company recorded $0.5 million of right-of-use assets and $0.5 million of lease liabilities on its consolidated balance sheet. On January 1, 2022, the Company adopted ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU removes certain exceptions to the general principles of Topic 740 and provides clarification and simplification of existing guidance. The adoption of ASU 2019-12 did not have a material effect on the consolidated financial statements. Accounting Standards Issued but Not Yet Adopted Credit Losses In June 2016, the FASB issued ASU No. 2016-13, (Topic 326), Financial Instruments — Credit Losses: Measurement of Credit Losses on Financial Instruments which amends the current accounting guidance and requires the use of the new forward-looking “expected loss” model, rather than the “incurred loss” model, which requires all expected losses to be determined based on historical experience, current conditions and reasonable and supportable forecasts. This guidance amends the accounting for credit losses for most financial assets and certain other instruments including trade and other receivables, held-to-maturity debt securities, loans, and other instruments. In November 2019, the FASB issued ASU No. 2019-10 to postpone the effective date of ASU No. 2016-13 for public business entities eligible to be smaller reporting companies ("SRCs") as defined by the SEC. ASU No. 2016-13 is effective for SRCs for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company expects to adopt the standard using the modified retrospective transition method and does not expect the adoption to have an impact to the accumulated deficit on the consolidated balance sheets as of January 1, 2023.
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Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment, Net | The estimated useful lives are as follows:
Property and equipment, net, consists of the following (in thousands):
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Business Combinations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination And Reverse Recapitalization [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Reverse Recapitalization | The following table reconciles the elements of the Business Combination, accounted for as a reverse recapitalization, to the Consolidated Statements of Cash Flows and the Consolidated Statements of Stockholders' Deficit for the year ended December 31, 2022 (in thousands):
__________________ 1.Includes 2,393,378 shares of common stock of the Company subject to the Forward Share Purchase Agreements. 2.50,000 shares were issued to Craig-Hallum Capital Group LLC at a price of $4.83 per share. 3.The number of Legacy Wag! shares was determined from the shares of Legacy Wag! common and preferred stock outstanding immediately prior to the closing of the Business Combination of 30,863,283, which are presented net of the common and preferred stock redeemed, converted at the exchange ratio of approximately 0.97 shares of the Company’s common stock for each share of Legacy Wag! common and preferred stock with the exception of 1,100,000 Legacy Wag! Series P Shares which converted into the Company’s common stock on a one-for-one basis.
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| Summary of Earnout Inputs and Valuation Techniques | The following table provides the assumptions used to determine fair value:
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| Schedule of Purchase Consideration | The purchase consideration allocation was as follows (in thousands):
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| Schedule of estimated useful lives of the acquired intangible assets | The table below summarizes the fair value and the estimated useful lives of the acquired intangible assets (in thousands):
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Revenue and Contract Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by offering (in thousands):
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of company's financial assets that are measured at fair value on a recurring basis | The Company’s financial assets that are measured at fair value on a recurring basis, by level within the fair value hierarchy, are as follows (in thousands):
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| Fair Value Measurement Inputs and Valuation Techniques | The following table presents the quantitative information regarding Level 3 fair value measurements of the Forward Purchase Agreements as of the following dates:
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Goodwill and Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of changes in the carrying amount of goodwill | The following table summarizes the changes in the carrying amount of goodwill for the years ended December 31, 2022 and December 31, 2021, respectively (in thousands):
__________________ (1)On October 24, 2022, the Company acquired Furmacy Inc. (“Furmacy”) for strategic opportunities related to expansion opportunities into the overall Pet Industry via the vet care and product sales channel. At December 31, 2022, goodwill related to the acquisition of Furmacy was $24 thousand. See Note 3 - Business Combinations for additional detail.
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| Schedule of gross book value and accumulated amortization of intangible assets | The gross book value and accumulated amortization of intangible assets were as follows (in thousands):
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| Schedule of estimated amortization expense of intangible asset | Based on the amounts recorded a December 31, 2022 the Company estimates intangible asset amortization expense in each of the years ending December 31 as follows (in thousands):
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Property and Equipment, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment, Net | The estimated useful lives are as follows:
Property and equipment, net, consists of the following (in thousands):
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Leases (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||
| Schedule of future minimum lease payments required under operating leases | As of December 31, 2022, the future minimum lease payments required under operating leases were as follows (in thousands):
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Debt (Tables) |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurement Inputs and Valuation Techniques | The following table presents the quantitative information regarding Level 3 fair value measurements of the Forward Purchase Agreements as of the following dates:
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| Schedule of future minimum payments of principal on Company's outstanding PPP loan | Future minimum payments of the principal on the Company’s outstanding obligations as of December 31, 2022 were as follows (in thousands):
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Stockholders' Equity (Deficit) and Mezzanine Equity (Tables) |
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of outstanding redeemable preferred stock | The Company had outstanding redeemable preferred stock as follows. The amounts in the table below have been adjusted to reflect the exchange ratio (approximately 0.97 shares of the Company’s common stock for each share of Legacy Wag! common stock) established in the Merger:
|
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| Schedule of option activity | A summary of the Company’s option activity under the 2014 Plan is as follows:
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| Schedule of valuation assumptions |
|
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| Schedule of restricted stock activity | A summary of restricted stock activity for the years ended December 31, 2022 is as follows:
|
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| Schedule of common stock warrants outstanding | A summary of Legacy Wag! common stock warrants outstanding as of December 31, 2022 and December 31, 2021 is as follows:
_________________ *The shares of the Company's warrants have been retroactively adjusted as shares reflecting the exchange ratio.
|
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| Fair Value Measurement Inputs and Valuation Techniques | The following table presents the quantitative information regarding Level 3 fair value measurements of the Forward Purchase Agreements as of the following dates:
|
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| Schedule of total stock-based compensation expense by function | The following table summarizes the total stock-based compensation expense by function for the year ended December 31, 2022 and 2021 (in thousands).
|
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of reconciliation of statutory federal income tax rate to effective tax rate | The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate was as follows:
|
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| Summary of significant components of deferred tax assets and liabilities | The significant components of the Company’s deferred tax assets and liabilities were as follows (in thousands):
|
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Loss per share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of basic and diluted loss per share | The following table shows the computation of basic and diluted earnings per share for December 31, 2022 and December 31, 2021 (in thousands, except share data):
|
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| Schedule of Anti-dilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The potential shares of common stock that were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive are as follows:
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Description of the Business - Narrative (Details) - USD ($) $ in Thousands |
2 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Jan. 05, 2023 |
Mar. 07, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Variable Interest Entity [Line Items] | ||||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | $ 0 | $ 1,509 | ||
| Subsequent Event | ||||
| Variable Interest Entity [Line Items] | ||||
| Initial investment | $ 1,470 | |||
| Subsequent Event | Dog Food Advisor | ||||
| Variable Interest Entity [Line Items] | ||||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | $ 9,000 | |||
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Net (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Equipment | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful life | 3 years |
| Capitalized software | |
| Property, Plant and Equipment [Line Items] | |
| Estimated useful life | 3 years |
Business Combinations - Schedule of Reverse Recapitalization (Details) - USD ($) $ in Thousands |
1 Months Ended | |||
|---|---|---|---|---|
Dec. 31, 2022 |
Nov. 09, 2022 |
Aug. 09, 2022 |
Aug. 31, 2022 |
|
| Business Combination And Reverse Recapitalization [Abstract] | ||||
| Cash – CHW’s trust (net of redemptions) | $ 28,330 | |||
| Cash – PIPE and Backstop Investor | 5,202 | |||
| Payment of transaction costs and other related expenses | (12,488) | |||
| Payment of deferred transaction costs | (9,318) | |||
| Reversal of APIC impact recorded upon issuance of Forward Share Purchase Agreements ("FPAs") in August 2022 | $ (23,203) | |||
| Cash received from FPA at Put Date | $ 9,837 | |||
| APIC impact of FPA at Put Date, net of cash received | $ 4,229 | |||
| Proceeds from merger with CHW, net of issuance costs | $ 2,589 | $ 11,726 |
Business Combinations - Summary of Earnout Inputs and Valuation Techniques (Details) |
Dec. 31, 2022 |
|---|---|
| Stock price | |
| Business Acquisition [Line Items] | |
| Earnout Shares Measurement Input | 8.28 |
| Dividend Yield | |
| Business Acquisition [Line Items] | |
| Earnout Shares Measurement Input | 0 |
| Volatility | |
| Business Acquisition [Line Items] | |
| Earnout Shares Measurement Input | 0.4400 |
| Risk-free rate | |
| Business Acquisition [Line Items] | |
| Earnout Shares Measurement Input | 0.0320 |
| Term (in years) | |
| Business Acquisition [Line Items] | |
| Earnout Shares Measurement Input | 3 |
Business Combinations - Acquisition of Compare Pet Insurance, Inc. (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Aug. 03, 2021 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Business Acquisition [Line Items] | |||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | $ 0 | $ 1,509,000 | |
| CPI | |||
| Business Acquisition [Line Items] | |||
| Cash consideration | $ 3,500,000 | ||
| Common stock consideration | $ 170,000 | ||
| Common stock consideration (in shares) | 639,000 | ||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | $ 1,500,000 | ||
| Deferred purchase consideration | $ 2,000,000 | ||
| Payment period | 3 years | ||
| Contingent liabilities accrued | $ 1,400,000 | $ 1,900,000 | |
| Working capital | $ 0 | ||
Business Combinations - Schedule of Purchase Consideration (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
Aug. 03, 2021 |
Dec. 31, 2020 |
|---|---|---|---|---|
| Business Acquisition [Line Items] | ||||
| Goodwill | $ 1,451 | $ 1,427 | $ 0 | |
| CPI | ||||
| Business Acquisition [Line Items] | ||||
| Intangible assets | $ 3,045 | |||
| Goodwill | 1,427 | |||
| Deferred tax liabilities | (792) | |||
| Total purchase consideration | $ 3,680 |
Business Combinations - Schedule of Estimated Useful Lives of Acquired Intangible Assets (Details) - CPI $ in Thousands |
Aug. 03, 2021
USD ($)
|
|---|---|
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value | $ 3,045 |
| Developed technology | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value | $ 648 |
| Estimated Useful Life (years) | 4 years |
| Customer relationships and licenses | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value | $ 2,121 |
| Customer relationships and licenses | Minimum | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Estimated Useful Life (years) | 5 years |
| Customer relationships and licenses | Maximum | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Estimated Useful Life (years) | 10 years |
| Trademarks | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value | $ 276 |
| Estimated Useful Life (years) | 7 years |
Business Combinations - Acquisition of Furmacy, Inc. (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Business Combination and Asset Acquisition [Abstract] | ||
| Shares issued upon acquisition (in shares) | 90,000 | |
| Shares issued upon acquisition | $ 283 | $ 166 |
Revenue and Contract Liabilities - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | $ 54,865 | $ 20,082 |
| Services revenue | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | 21,823 | 14,951 |
| Wellness revenue | ||
| Disaggregation of Revenue [Line Items] | ||
| Total revenues | $ 33,042 | $ 5,131 |
Revenue and Contract Liabilities - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Contract liabilities | $ 2.2 | $ 1.9 |
| Amount of revenue included in contract with customer liability | $ 0.3 | $ 0.1 |
Fair Value Measurements - Schedule of Financial Assets (Details) - Fair Value, Recurring - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Assets: | ||
| Total financial assets | $ 31,690 | $ 3,391 |
| Level 1 | ||
| Assets: | ||
| Total financial assets | 31,690 | 837 |
| Level 2 | ||
| Assets: | ||
| Total financial assets | 0 | 2,554 |
| Level 3 | ||
| Assets: | ||
| Total financial assets | 0 | 0 |
| Money market funds | ||
| Assets: | ||
| Cash equivalents | 31,690 | 837 |
| Money market funds | Level 1 | ||
| Assets: | ||
| Cash equivalents | 31,690 | 837 |
| Money market funds | Level 2 | ||
| Assets: | ||
| Cash equivalents | 0 | 0 |
| Money market funds | Level 3 | ||
| Assets: | ||
| Cash equivalents | $ 0 | 0 |
| Corporate bonds | ||
| Assets: | ||
| Short-term investments | 2,554 | |
| Corporate bonds | Level 1 | ||
| Assets: | ||
| Short-term investments | 0 | |
| Corporate bonds | Level 2 | ||
| Assets: | ||
| Short-term investments | 2,554 | |
| Corporate bonds | Level 3 | ||
| Assets: | ||
| Short-term investments | $ 0 |
Fair Value Measurements - Measurement Inputs (Details) - Level 3 - Forward Contracts |
Sep. 30, 2022
year
$ / shares
|
Aug. 09, 2022
year
$ / shares
|
|---|---|---|
| Exercise price | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Derivative liability, measurement input | 10.30 | 10.30 |
| Stock price | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Derivative liability, measurement input | 2.05 | 8.28 |
| Volatility | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Derivative liability, measurement input | 0.420 | 0.700 |
| Term (in years) | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Derivative liability, measurement input | year | 0.25 | 0.25 |
| Risk-free rate | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Derivative liability, measurement input | 0.029 | 0.027 |
| Dividend Yield | ||
| Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
| Derivative liability, measurement input | 0 | 0 |
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Goodwill [Roll Forward] | ||
| Beginning balance | $ 1,427 | $ 0 |
| Acquisition | 24 | 1,427 |
| Ending balance | 1,451 | $ 1,427 |
| Furmacy | ||
| Goodwill [Roll Forward] | ||
| Ending balance | $ 24 | |
Goodwill and Intangible Assets - Net book value (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Finite-Lived Intangible Assets [Line Items] | ||
| Accumulated Amortization | $ (704) | $ (206) |
| Total | 2,541 | |
| Indefinite-Lived Intangible Assets [Line Items] | ||
| Total Indefinite Life Intangible Assets | 49 | 40 |
| Gross Book Value | 3,245 | 3,054 |
| Net Book Value | 2,541 | 2,848 |
| Pharmacy board licenses | ||
| Indefinite-Lived Intangible Assets [Line Items] | ||
| Total Indefinite Life Intangible Assets | 5 | |
| Developed technology | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Gross Book Value | 783 | 608 |
| Accumulated Amortization | (226) | (65) |
| Total | 557 | 543 |
| Customer relationships and licenses | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Gross Book Value | 2,166 | 2,170 |
| Accumulated Amortization | (422) | (125) |
| Total | 1,744 | 2,045 |
| Trademarks | ||
| Finite-Lived Intangible Assets [Line Items] | ||
| Gross Book Value | 291 | 276 |
| Accumulated Amortization | (56) | (16) |
| Total | $ 235 | $ 260 |
Goodwill and Intangible Assets - Estimated amortization expense (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| 2023 | $ 553 |
| 2024 | 548 |
| 2025 | 474 |
| 2026 | 376 |
| 2027 | 249 |
| Thereafter | 341 |
| Total | $ 2,541 |
Property and Equipment, Net (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 660 | $ 596 |
| Less: accumulated depreciation and amortization | 572 | 506 |
| Property and equipment, net | 88 | 90 |
| Depreciation and amortization | 571 | 388 |
| Equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 200 | 136 |
| Capitalized software | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 460 | $ 460 |
Leases - Future Minimum Lease Payments (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
|---|---|
| Leases [Abstract] | |
| 2023 | $ 288 |
| 2024 | 248 |
| 2025 | 255 |
| 2026 | 43 |
| Total minimum lease payments | $ 834 |
Commitments and Contingencies (Details) - Unemployment Insurance Contributions, Independent Contractors - USD ($) $ in Thousands |
Dec. 31, 2022 |
Nov. 30, 2019 |
Aug. 31, 2018 |
|---|---|---|---|
| Gain Contingencies [Line Items] | |||
| Unemployment insurance contributions | $ 1,300 | $ 1,700 | $ 250 |
| Company's liability | $ 248 |
Debt - PPP Loan (Details) - USD ($) $ in Thousands |
1 Months Ended | |||
|---|---|---|---|---|
Sep. 30, 2021 |
Aug. 31, 2021 |
Aug. 31, 2020 |
Dec. 31, 2022 |
|
| Debt Instrument [Line Items] | ||||
| Total principal amount | $ 33,242 | |||
| PPP Loan | ||||
| Debt Instrument [Line Items] | ||||
| Loan proceeds | $ 5,100 | |||
| Applied loan forgiveness amount | $ 3,500 | |||
| Loan forgiveness amount | $ 3,500 | |||
| Term of loan (in years) | 5 years | |||
| Fixed annual interest rate | 1.00% | |||
| Total principal amount | $ 1,200 | |||
Debt - Schedule of Future Minimum Payments (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
|---|---|
| Debt Disclosure [Abstract] | |
| 2023 | $ 1,264 |
| 2024 | 1,751 |
| 2025 | 30,227 |
| Total principal amount | $ 33,242 |
Stockholders' Equity (Deficit) and Mezzanine Equity - Preferred Stock (Details) $ / shares in Units, $ in Thousands |
12 Months Ended | |
|---|---|---|
|
Jan. 28, 2022
USD ($)
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
|
| Redeemable Preferred Stock - Mezzanine Equity | ||
| Preferred Series P issuance, net of issuance costs (in shares) | 1,100,000 | |
| Preferred Series P Issuance, net of issuance costs | $ | $ 10,925 | |
| Preferred stock, par value, (per share) | $ / shares | $ 0.0001 | |
| Preferred stock, shares authorized | 1,000,000 | |
| Preferred stock, shares issued | 0 | |
| Preferred stock, shares outstanding | 0 | |
| Series P convertible preferred shares | ||
| Redeemable Preferred Stock - Mezzanine Equity | ||
| Preferred Series P issuance, net of issuance costs (in shares) | 1,100,000 | |
| Preferred Series P Issuance, net of issuance costs | $ | $ 11,000 | |
| Preferred stock, par value, (per share) | $ / shares | $ 0.0001 | |
| Conversion ratio | 0.97 |
Stockholders' Equity (Deficit) and Mezzanine Equity - Common Stock (Details) |
Dec. 31, 2022
$ / shares
shares
|
Aug. 09, 2022
$ / shares
shares
|
Dec. 31, 2021
$ / shares
shares
|
|---|---|---|---|
| Stockholders' Equity Note [Abstract] | |||
| Common stock, authorized (in shares) | 110,000,000 | 43,763,126 | |
| Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
| Common stock, issued (in shares) | 36,849,076 | 6,121,253 | |
| Common stock, outstanding (in shares) | 36,849,076 | 37,745,964 | 6,121,253 |
| Exchange ratio | 0.97 |
Stockholders' Equity (Deficit) and Mezzanine Equity - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Wag Labs, Inc. | ||
| Weighted Average Grant Date Fair Value ($ per share) | ||
| Stock compensation expense expected to be recognized over a weighted average period | 1 year 5 months 8 days | |
| Restricted Stock | ||
| Number of Shares | ||
| Unvested at beginning (in shares) | 169,283 | |
| Grants (in shares) | 4,091,394 | |
| Vested (in shares) | (52,902) | |
| Forfeited (in shares) | (13,000) | |
| Unvested at ending (in shares) | 4,194,775 | |
| Weighted Average Grant Date Fair Value ($ per share) | ||
| Unvested at beginning (in dollars per share) | $ 0.22 | |
| Grants (in dollars per share) | 2.50 | |
| Vested (in dollars per share) | 0.22 | |
| Forfeited (in dollars per share) | 2.50 | |
| Unvested at ending (in dollars per share) | $ 2.44 | |
| Unrecognized expense related to unvested restricted stock | $ 9,800 | $ 14 |
| Stock compensation expense expected to be recognized over a weighted average period | 2 years 8 months 8 days |
Stockholders' Equity (Deficit) and Mezzanine Equity - Common Stock Warrants (Details) |
12 Months Ended | ||||
|---|---|---|---|---|---|
|
Aug. 09, 2022
Lender
shares
|
Dec. 31, 2022
lender
$ / shares
shares
|
Dec. 31, 2021
$ / shares
shares
|
Dec. 31, 2018
$ / shares
shares
|
Dec. 31, 2017 |
|
| Stock Option Plan | |||||
| Warrants outstanding (in shares) | 91,130 | ||||
| Number of lenders | 2 | 2 | |||
| Exchange ratio | 0.97 | 0.97 | |||
| Common Stock Warrants | |||||
| Stock Option Plan | |||||
| Warrants outstanding (in shares) | 0 | 88,756 | 91,310 | ||
| Weighted Average Exercise Price ($ per share) | $ / shares | $ 0 | $ 1.59 | $ 1.54 | ||
| Term of warrants (in years) | 10 years | ||||
| Exchange ratio | 0.97 | ||||
| Number of warrants to purchase common stock (in shares) | 72,434 |
Stockholders' Equity (Deficit) and Mezzanine Equity - Common Stock Warrants Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands |
Dec. 31, 2022 |
Aug. 09, 2022 |
Dec. 31, 2021 |
Dec. 31, 2018 |
|---|---|---|---|---|
| Class of Warrant or Right [Line Items] | ||||
| Number of Shares (in shares) | 91,130 | |||
| Common Stock Warrants | ||||
| Class of Warrant or Right [Line Items] | ||||
| Number of Shares (in shares) | 0 | 88,756 | 91,310 | |
| Weighted Average Exercise Price ($ per share) | $ 0 | $ 1.59 | $ 1.54 | |
| Aggregate Intrinsic Value | $ 0 | $ 0 |
Income Taxes (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Income Tax Disclosure [Abstract] | ||
| Provision for income taxes expense (benefit) | $ 13,000 | $ (793,000) |
| Deferred U.S. federal income tax | 19,800 | |
| Deferred state income tax | $ 1,500 | |
Income Taxes - Reconciliation of Statutory Federal Income Tax Rate (Details) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Income Tax Disclosure [Abstract] | ||
| Statutory rate | 21.00% | 21.00% |
| State tax | 1.40% | 2.20% |
| Valuation allowance | (9.10%) | (21.90%) |
| Other | (0.10%) | 0.00% |
| Stock based compensation | (12.30%) | (0.60%) |
| Change in fair value of derivative liability | (2.70%) | 0.00% |
| Transaction costs - Success based | 1.80% | 0.00% |
| PPP Loan Forgiveness | 0.00% | 10.00% |
| Total | 0.00% | 10.60% |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Deferred tax assets: | ||
| Net operating loss | $ 54,628 | $ 52,373 |
| Stock-based compensation | 205 | 25 |
| Charitable contributions | 416 | 214 |
| Accrued expenses | 591 | 453 |
| Capitalized research and development | 1,249 | 0 |
| Lease liability | 218 | 0 |
| Other | 868 | 489 |
| Total deferred tax assets | 58,175 | 53,554 |
| Deferred tax liabilities: | ||
| Fixed assets | 0 | (20) |
| Right-of-use asset | 191 | |
| Intangibles assets | (713) | (731) |
| Total deferred tax liabilities | (904) | (751) |
| Valuation allowance | 57,271 | 52,803 |
| Net deferred tax liabilities | $ 0 | $ 0 |
Loss per share - Schedule of Basic and Diluted Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Earnings Per Share [Abstract] | ||
| Net loss | $ (38,567) | $ (6,311) |
| Weighted-average shares, Basic | 18,641,076 | 5,742,807 |
| Weighted-average shares, Diluted | 18,641,076 | 5,742,807 |
| Net loss per share, Basic | $ (2.07) | $ (1.10) |
| Net loss per share, Diluted | $ (2.07) | $ (1.10) |
401 (k) Plan (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
USD ($)
| |
| Retirement Benefits [Abstract] | |
| Contribution plan | $ 60,000 |
Subsequent Events (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Jan. 05, 2023 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Subsequent Events | |||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | $ 0 | $ 1,509 | |
| Subsequent Event | Dog Food Advisor | |||
| Subsequent Events | |||
| Cash paid for acquisition of Compare Pet Insurance, Inc. | $ 9,000 | ||
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