Quarterly report pursuant to Section 13 or 15(d)

Stock Warrants

v3.22.1
Stock Warrants
3 Months Ended
Mar. 31, 2022
Stock Warrants [Abstract]  
STOCK WARRANTS

14. STOCK WARRANTS

 

Public Warrants and Private Placement Warrants

 

As a result of the Business Combination, MoneyLion acquired from Fusion, as of September 22, 2021, public warrants outstanding to purchase an aggregate of 17,500,000 shares of the MoneyLion Class A Common Stock (the “Public Warrants”) and private placement warrants outstanding to purchase an aggregate of 8,100,000 shares of the MoneyLion Class A Common Stock (the “Private Placement Warrants”).

 

The Public Warrants meet the conditions for equity classification in accordance with ASC 815-40. At the time of the Business Combination, the Public Warrants assumed by the Company were recorded at fair value within additional paid-in capital in the amount of $23,275. The Private Placement Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liability on the consolidated balance sheets. The warrant liability is measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrants liability in the consolidated statement of operations.

 

The Private Placement Warrants were valued using a Black-Scholes Option Pricing Model, which is calculated using Level 3 inputs. The primary unobservable input utilized in determining fair value of the Private Placement Warrants is the expected volatility of the MoneyLion Class A Common Stock.

 

The following table presents the quantitative information regarding Level 3 fair value measurement of the Private Placement Warrants:

 

    March 31,  
    2022  
Strike price   $ 11.50  
Expected Volatility     68 %
Expected Dividend    
-
 
Expected Term in Years     4.48  
Risk Free Interest Rate     2.43 %
Warrant Value Per Share   $ 0.54  

The following table presents the changes in the liability related to the Private Placement Warrants:

 

    March 31, 2022  
    Private Placement  
    Warrants  
Warrants payable balance, December 31, 2021   $ 8,260  
Mark-to-market adjustment   $ (3,910 )
Warrants payable balance, March 31, 2022   $ 4,350  

For more information regarding the Public Warrants and Private Placement Warrants, see Part II, Item 8 “Stock Warrants” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

 

Legacy MoneyLion Warrants

 

For details on Legacy MoneyLion warrants, see Part II, Item 8 “Business Combination” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.