PublicSq. Reports Second Quarter 2023 Financial Results

Aug 09, 2023 08:00 am
WEST PALM BEACH, Fla. -- 

PSQ Holdings, Inc. (NYSE: PSQH) (“PublicSq.” pronounced “Public Square”), a leading marketplace of patriotic businesses and consumers, today provided financial results for the second quarter ended June 30, 2023.

Michael Seifert, Chairman and Chief Executive Officer of PublicSq., stated, “While so many companies are celebrating what is wrong, we choose to celebrate what is right. We support small businesses and brands rooted in American exceptionalism — companies that exist to serve hardworking people who still believe in the values that built this great nation and want to see it thrive. The growth of our community and the engagement of our network, particularly since the beginning of the year, has been extraordinary, and we are just getting started. With our July listing on the NYSE, we are now a public company by the people, for the people, and owned by, ‘We the People.’”

1H 2023 Through June 30, 2023 Financial & Business Highlights

  • The Company had 1.20 million consumer members at June 30, 2023, up 212% from 385,000 members as of December 31, 2022.
  • The increase in consumer members is primarily driven by increased exposure, enhanced app performance, and the growth of the Company’s Outreach Program.
  • Consolidated revenue for 1H 2023 grew 1,144% versus 1H 2022.
  • Revenue for 1H23 was $908,000, reflecting $530,000 generated in the second quarter and $378,000 in the first quarter. First half revenue in 2022 was $73,000.
  • The Company had over 57,000 businesses as of quarter end.

Subsequent Events

  • Over 1.43 million consumer members as of July 31, 2023, up 271% from 385,000 members as of December 31, 2022.
  • There were over 65,000 businesses as of July 31, 2023, versus 32,851 as of December 31, 2022, representing 98% growth.
  • The Company launched EveryLife Inc. (“EveryLife”), a wholly-owned baby-care brand, on July 13, 2023. During the first 19 operating days to the end of July, EveryLife generated over 4,300 total orders, which created total estimated revenues of around $300,000. Roughly 60% of these orders were monthly auto-renew subscriptions.
  • The Company has also experienced significant growth of average daily unique sessions, which refers to the average number of unique IP addresses accessing the app.publicsq.com platform on mobile and desktop devices in a single day. Since tracking this data, the average daily unique sessions have grown over 400% to an average of 453,225 per day for the month of July 2023, compared to an average of 89,843 unique sessions per day for the period from January 18, 2023 through January 31, 2023.
  • As of July 31, 2023, cash and cash equivalents were $32.6 million.
  • The Company plans on filing its customary S-1 registration statement related to its public listing via SPAC after market close on August 9, 2023. The registration statement is related to warrants and securities that have already been issued and outstanding since Colombier Acquisition Corporation’s initial public offering in June 2021. It is not related to new capital raising activities by PublicSq. Furthermore, the Company does not anticipate pursuing any additional financing for the current business in the foreseeable future.

Prepared Remarks & Discussion
Management will host prepared remarks today at 9:00 am ET. The live webcast and replay can be accessed at https://publicsq.com/investors. PublicSq. has utilized the Say Technologies platform to allow shareholders to submit questions to management in advance of the webcast. Management will respond to previously submitted, top questions that pertain to PublicSq.’s strategic priorities, business operations, financial position and efforts to continue enhancing the business. To comply with U.S. securities laws and on the advice of counsel, the Company will not comment on other topics.

About PublicSq.
PublicSq. is an app and website that connects patriotic Americans to high-quality businesses that share their values, both online and in their local communities. The primary mission of the platform is to help consumers "shop their values" and put purpose behind their purchases. In just over one year since its nationwide launch, PublicSq. has seen tremendous growth and proven to the nation that the parallel, "patriotic" economy can be a major force in commerce. The platform has over 65,000 businesses from a variety of different industries and over 1.4 million consumer members. Additionally, PublicSq. leverages data and insights from the platform to assess its members’ needs and provide quality wholly-owned products, such as EveryLife diapers and wipes, to fill those needs. PublicSq. is free to join for both consumers and business owners alike, and to learn more, download the app on the App Store or Google Play, or visit PublicSq.com.

About EveryLife Inc.
EveryLife Inc. began with a simple mission: to provide premium products for every baby, because every baby is a miracle from God who deserves to be loved, protected, and supported. At EveryLife, we believe in providing for — and protecting — the next generation. EveryLife Inc. was acquired by PublicSq. in February 2023 and launched on July 13, 2023 as a wholly owned baby-care brand selling diapers and wipes. To learn more, please visit everylife.com.

PSQ HOLDINGS, INC (dba PublicSq.)

Condensed Consolidated Balance Sheets

 

 

 

June 30, 2023

 

 

December 31, 2022

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Current assets

 

 

 

 

 

Cash and cash equivalents

$

6,170,477

 

$

2,330,405

Short-term investments

 

10,049,870

 

 

-

Prepaid expenses and other current assets

 

1,034,454

 

 

289,379

Total current assets

 

17,254,801

 

 

2,619,784

Intangible assets, net

 

2,439,451

 

 

1,267,673

Operating lease right-of-use asset

 

210,847

 

 

293,520

Property and equipment, net

 

137,353

 

 

26,723

Deposits

 

38,165

 

 

7,963

Total assets

$

20,080,617

 

$

4,215,663

 

 

 

 

 

 

Liabilities and stockholders'(deficit) equity

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

$

573,238

 

$

424,065

Accrued expenses

 

2,176,742

 

 

41,494

Deferred revenue

 

113,521

 

 

49,654

Current portion of operating lease liabilities

 

185,673

 

 

169,275

Total current liabilities

 

3,049,174

 

 

684,488

Convertible promissory notes

 

37,071,109

 

 

-

Operating lease liabilities, non-current

 

33,293

 

 

129,762

Total liabilities

 

40,153,576

 

 

814,250

Commitments and contingencies (Note 14)

 

 

 

 

 

Stockholders’ (deficit) equity

 

 

 

 

 

Common stock, $0.001 par value; 1,100,000 authorized

shares; 900,475 and 771,155 shares issued and outstanding

as of June 30, 2023 and December 31, 2022, respectively

 

900

 

 

771

Additional paid in capital

 

16,219,040

 

 

12,384,206

Subscription receivable

 

-

 

 

(99,612)

Accumulated deficit

 

(36,292,899)

 

 

(8,883,952)

Total stockholders' (deficit) equity

 

(20,072,959)

 

 

3,401,413

Total liabilities and stockholders' (deficit) equity

$

20,080,617

 

$

4,215,663

PSQ HOLDINGS, INC (dba PublicSq.)

Condensed Consolidated Statements of Operations (Unaudited)

 

 

 

For the three months ended

June 30,

For the six months ended

June 30,

 

 

2023

 

2022

 

2023

 

2022

Revenue

 

$

529,707

 

 

$

72,941

 

 

$

907,741

 

 

$

72,941

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue (exclusive of depreciation and amortization shown separately below)

432,934

154,746

795,907

273,393

General and administrative

 

 

3,837,946

 

 

 

857,579

 

 

 

7,987,317

 

 

 

1,327,784

 

Sales and marketing

 

 

2,460,305

 

 

 

406,487

 

 

 

3,068,840

 

 

 

525,046

 

Research and development

 

 

288,483

 

 

 

102,278

 

 

 

536,984

 

 

 

314,691

 

Depreciation and amortization

 

 

699,237

 

 

 

166,083

 

 

 

1,244,574

 

 

 

273,916

 

Total costs and expenses

7,718,905

1,687,173

 

13,633,622

2,714,830

 

Operating loss

(7,189,198

)

(1,614,232

)

 

(12,725,881

)

(2,641,889

)

Other income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income, net

 

 

48,549

 

 

 

 

 

 

 

53,687

 

 

 

7,846

 

Changes in fair value of convertible promissory notes

(13,423,204

)

-

(14,571,109

)

-

Interest expense

(155,854

)

-

(163,855

)

-

Loss before income tax expense

 

 

(20,719,707

)

 

 

(1,614,232

)

 

 

(27,407,158

)

 

 

(2,634,043

)

Income tax expense

 

 

(1,600

)

 

 

(713

)

 

 

(1,789

)

 

 

(713

)

Net loss

 

 

(20,721,307

)

 

 

(1,614,945

)

 

 

(27,408,947

)

 

 

(2,634,756

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$

(23.01

)

 

$

(3.04

)

 

$

(31.52

)

 

$

(5.10

)

Weighted-average shares outstanding, basic and diluted

 

 

900,475

 

 

 

532,087

 

 

 

869,488

 

 

 

516,321

 

 

PSQ HOLDINGS, INC (dba PublicSq.)

Condensed Consolidated Statements of Changes in Stockholders’ (Deficit) Equity (Unaudited)

 

Common Stock

 

 

 

Shares

 

Amount

 

Additional Paid- In Capital

 

 

Subscription Receivable

 

Accumulated Deficit

 

Total Stockholders' (Deficit) Equity

Balance at December 31, 2022

 

771,155

$

771

$

12,384,206

$

(99,612

)

 

$

(8,883,952

)

$

3,401,413

 

Issuance of common stock for cash

74,320

74

2,500,039

 

—

 

 

—

 

2,500,113

 

Receipt of subscription receivable

 

—

 

 

—

 

 

—

 

 

100,012

 

 

 

—

 

 

 

100,012

 

Issuance of common stock for asset acquisition

 

55,000

 

 

55

 

 

1,334,795

 

 

—

 

 

 

—

 

 

 

1,334,850

 

Net loss

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(6,687,640

)

 

 

(6,687,640

)

Balance at March 31, 2023

 

900,475

$

900

$

16,219,040

$

400

 

 

$

(15,571,592

)

$

648,748

 

Repayment of subscription payable

 

—

 

 

—

 

 

—

 

 

(400

)

 

 

—

 

 

 

(400

)

Net loss

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(20,721,307

)

 

 

(20,721,307

)

Balance at June 30, 2023

 

900,475

 

$

900

 

$

16,219,040

 

$

—

 

 

$

(36,292,899

)

 

$

(20,072,959

)

Common Stock

 

 

 

Shares

 

Amount

 

Additional Paid- In Capital

 

 

Subscription Receivable

 

Accumulated Deficit

 

Total Stockholders' Equity

Balance at December 31, 2021

 

485,731

$

486

$

2,799,994

$

(34,600

)

 

$

(1,905,376

)

$

860,504

 

Issuance of common stock for cash

 

25,845

 

 

26

 

 

810,219

 

 

—

 

 

 

—

 

 

 

 

810,245

 

Receipt of subscription receivable

 

—

 

 

—

 

 

—

 

 

35,000

 

 

 

—

 

 

 

 

35,000

 

Net loss

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(1,019,811

)

 

 

 

(1,019,811

)

Balance at March 31, 2022

 

511,576

 

$

512

 

$

3,610,213

 

$

400

 

 

$

(2,925,187

)

 

$

685,938

 

Issuance of common stock for cash

 

40,285

 

 

40

 

 

1,455,060

 

 

—

 

 

 

—

 

 

 

 

1,455,100

 

Net loss

 

—

 

 

—

 

 

—

 

 

—

 

 

 

(1,614,945

)

 

 

 

(1,614,945

)

Balance at June 30, 2022

 

551,861

 

$

552

 

$

5,065,273

 

$

400

 

 

$

(4,540,132

)

 

$

526,093

 

PSQ HOLDINGS, INC (dba PublicSq.)

Condensed Consolidated Statements of Cash Flows (Unaudited)

 

 

For the six months ended June 30,

 

2023

 

2022

Cash Flows from Operating Activities

 

 

 

 

 

Net loss

$

(27,408,947)

 

$

(2,634,756)

Adjustment to reconcile net loss to cash used in operating activities:

 

 

 

 

 

Change in fair value of convertible promissory notes

 

14,571,109

 

 

-

Depreciation and amortization

 

1,244,574

 

 

273,916

Non-cash operating lease expense

 

82,673

 

 

-

Changes in operating assets and liabilities:

Prepaid expenses and other current assets

 

(745,075)

 

 

(90,614)

Deposits

 

(30,202)

 

 

(5,463)

Accounts payable

149,173

434,142

Accrued expenses

 

2,135,248

 

 

61,240

Deferred revenue

 

63,867

 

 

4,590

Operating lease payments

(80,071)

-

Net cash used in operating activities

 

(10,017,651)

 

 

(1,956,945)

 

 

 

 

 

 

Cash flows from Investing Activities

 

 

 

 

 

Purchase of short-term investments

 

(10,049,870)

 

 

-

Software development costs

 

(992,467)

 

 

(688,605)

Purchase of intangible assets

 

(86,601)

 

 

-

Purchase of property and equipment

 

(113,064)

 

 

(21,465)

Net cash used in investing activities

 

(11,242,002)

 

 

(710,070)

 

 

 

 

Cash flows from Financing Activities

Proceeds from the issuance of common stock

 

2,600,125

 

 

2,300,345

Repayment of subscription payable

 

(400)

 

 

-

Proceeds from issuance of convertible promissory notes

 

22,500,000

 

 

-

Net cash provided by financing activities

25,099,725

2,300,345

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

3,840,072

 

 

(366,670)

Cash and cash equivalents, beginning of period

2,330,405

399,403

Cash and cash equivalents, end of the period

$

6,170,477

 

$

32,733

 

Supplemental Non-Cash Investing and Financing Activity

 

 

 

 

 

Brand intangible purchase for stock

$

1,334,850

 

$

-

Subscription receivable (payable)

$

-

 

$

(400)

 

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