Dave Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Dave Inc. has filed its 2023 10-K, detailing financial instruments, liabilities, and historical corporate events.</b>

AI Summary

Dave Inc./DE (DAVEW) filed a Annual Report (10-K) with the SEC on March 5, 2024. Dave Inc. filed its 10-K for the fiscal year ending December 31, 2023. The filing details various financial instruments and liabilities, including warrants, promissory notes, and earnout shares. Key dates mentioned include January 31, 2021, for a Senior Secured Loan Facility and September 13, 2023, for a Third Amendment. The company's former name was VPC Impact Acquisition Holdings III, Inc., with a name change on January 20, 2021. The filing references specific financial events such as a July 2020 data breach and a reverse recapitalization.

Why It Matters

For investors and stakeholders tracking Dave Inc./DE, this filing contains several important signals. This 10-K provides a comprehensive overview of Dave Inc.'s financial position and activities for the fiscal year 2023, including details on debt, equity, and various financial arrangements. Understanding the specific financial instruments and liabilities mentioned, such as warrants and promissory notes, is crucial for assessing the company's financial health and potential future obligations.

Risk Assessment

Risk Level: medium — Dave Inc./DE shows moderate risk based on this filing. The company's financial disclosures indicate a complex web of financial instruments and liabilities, including warrants, promissory notes, and potential earnout shares, suggesting a medium level of financial risk.

Analyst Insight

Investors should carefully review the detailed financial statements and risk factors in the 10-K to understand the company's financial structure and potential risks.

Key Numbers

• 20231231 — Fiscal Year End (Period of report for the 10-K)
• 20240305 — Filing Date (Date the 10-K was filed)
• 20210120 — Date of Name Change (From VPC Impact Acquisition Holdings III, Inc. to Dave Inc.)
• 2021-01-31 — Senior Secured Loan Facility Date (Related to Victory Park Management Llc)
• 2023-09-13 — Third Amendment Date (Related to Senior Secured Loan Facility)

Key Players & Entities

• Dave Inc./DE (company) — Filer of the 10-K
• VPC Impact Acquisition Holdings III, Inc. (company) — Former name of Dave Inc.
• Victory Park Management Llc (company) — Mentioned in relation to Senior Secured Loan Facility
• Alameda Research (company) — Mentioned in relation to Promissory Note
• Ftx Ventures Ltd (company) — Mentioned in relation to a transaction on 2022-03-21

FAQ

Risk Factors

• Fair Value Adjustment of Warrants [medium — financial]: The filing references a fair value adjustment of warrants, indicating potential volatility in their valuation.
• Promissory Notes and Loan Facilities [medium — financial]: Details on promissory notes and senior secured loan facilities suggest significant debt obligations and associated covenants.
• July 2020 Data Breach [medium — operational]: The company incurred legal settlement expenses related to a data breach in July 2020, highlighting operational security risks.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K
• 2024-03-05: Filing Date — Date the 10-K was officially submitted
• 2021-01-20: Company Name Change — Transition from VPC Impact Acquisition Holdings III, Inc. to Dave Inc.
• 2021-01-31: Senior Secured Loan Facility — Establishment of a significant debt facility

Key Financial Figures

• $0.0001 — tered Class A common stock, par value $0.0001 DAVE The Nasdaq Stock Market LLC
• $368 — on stock, each at an exercise price o f $368 p er share DAVEW The Nasdaq Stock M
• $5.33 — ed using the per share closing price of $5.33 on The Nasdaq Global Market on June 30,
• $300 — e believe are on average paying between $300-$400 per year in overdraft fees, mainte
• $400 — ieve are on average paying between $300-$400 per year in overdraft fees, maintenance
• $40 billion — cy financial institutions charge nearly $40 billion in fees annually. The FHN estimates tha
• $160 billion — " and "vulnerable" populations pay over $160 billion a year in fees and interest for access
• $500 — product allows Members to access up to $500 to cover an overdraft at their existing
• $100.0 million — ote in the original principal amount of $100.0 million previously issued by us to FTX Ventures
• $71.0 million — FTX Ventures Ltd. on March 21, 2022 for $71.0 million. This purchase price represented 67 per
• $105.5 million — ase price represented 67 percent of the $105.5 million outstanding balance as of December 31,
• $35 — example, traditional banks charge up to $35 for access to as little as $5 of overdr
• $5 — ge up to $35 for access to as little as $5 of overdraft, whereas many others in th
• $250,000 — ance on checking account balances up to $250,000. Moreover, Dave Banking Members receive

Filing Documents

• dave-20231231.htm (10-K) — 3115KB
• dave-ex23_1.htm (EX-23.1) — 4KB
• dave-ex31_1.htm (EX-31.1) — 14KB
• dave-ex31_2.htm (EX-31.2) — 13KB
• dave-ex32.htm (EX-32) — 8KB
• dave-ex97_1.htm (EX-97.1) — 51KB
• 0000950170-24-026024.txt (&nbsp;) — 15288KB
• dave-20231231.xsd (EX-101.SCH) — 2847KB
• dave-20231231_htm.xml (XML) — 2704KB

Business

Business 4 ITEM 1A.

Risk Factors

Risk Factors 18 ITEM 1B. Unresolved Staff Comments 44 ITEM 1C. Cybersecurity 44 ITEM 2.

Properties

Properties 45 ITEM 3.

Legal Proceedings

Legal Proceedings 45 ITEM 4. Mine Safety Disclosures 45 PART II ITEM 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46 ITEM 6. [Reserved] 46 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 47 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 60 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 61 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 102 ITEM 9A.

Controls and Procedures

Controls and Procedures 102 ITEM 9B. Other Information 103 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 103 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 104 ITEM 11.

Executive Compensation

Executive Compensation 104 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 104 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 104 ITEM 14. Principal Accountant Fees and Services 104 PART IV ITEM 15. Exhibits and Financial Statement Schedules 105 ITEM 16. Form 10-K Summary 108

Signatures

Signatures 109 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K (this "report" or this "Annual Report on Form 10-K") contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this report other than statements of historical fact, including statements regarding our future results of operations, financial position, market size and opportunity, our business strategy and plans, the factors affecting our performance and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "could," "should," "would," "can," "expect," "project," "outlook," "forecast," "objective," "plan," "potential," "seek," "grow," "target," "if" and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the section titled "Risk Factors" set forth in Part I, Item 1A of this report and in our other filings with the Securities and Exchange Commission (the "SEC"). Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-l

BUSI NESS

ITEM 1. BUSI NESS Unless otherwise noted or the context otherwise requires, the disclosures in this Item 1 refer to Dave Inc. and its consolidated subsidiaries following the consummation of the Business Combination . Overview In the story of David vs. Goliath, the small underdog is able to outsmart and defeat his larger adversary. This is the spirit behind the name "Dave." We have built an integrated and fully digital financial services platform that provides millions of Americans with seamless access to a variety of intuitive financial products at a fraction of the cost and with much greater transparency and higher speed to value than that of the legacy financial services incumbents, such as traditional banks, credit unions, and independent finance companies. Our mission is to build products that level the financial playing field. Our strategy is focused on delivering a superior banking experience for anyone living paycheck to paycheck. Based on our observation and analysis of Member data, legacy financial institutions charge high fees for consumer banking and other financial services products, which disproportionately burdens tens of millions of Americans who can least afford them. We witness this dynamic playing out with our Members who we believe are on average paying between $300-$400 per year in overdraft fees, maintenance and other fees to their existing bank for basic checking services. Further, we see a significant opportunity to address the broader short-term credit market. According to a 2023 report by The Financial Health Network ("FHN"), legacy financial institutions charge nearly $40 billion in fees annually. The FHN estimates that financially "coping" and "vulnerable" populations pay over $160 billion a year in fees and interest for access to short-term credit. Our prospective Member opportunity is also significant. In the 2023 report, the FHN estimated that approximately 180 million Americans are "financially vulnerable" or "financially c

View Full Filing

View this 10-K filing on SEC EDGAR