Company: PSEWF
Filing Date: 2025-03-04
Form Type: 20-F
Source: 0000950170-25-032340
Chunk: 118

Company: Paysafe Ltd
Filing Date: 2025-03-04
Form: 20-F
Item: Item 5
Chunk 118
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ash items of $318,910, largely driven by depreciation and amortization of $274,755, share-based compensation of $38,534 and allowance for credit losses of $52,649, offset partially by a deferred tax benefit of $33,187 and other income, net of $10,159. This was partly offset by cash outflows of $87,266 in working capital.

For the year ended December 31, 2023, net cash flows provided by operating activities of $234,022 primarily consists of a net loss of $20,251 adjusted for non-cash items of $321,727, largely driven by depreciation and amortization of $264,145, share-based compensation of $28,873, and allowance for credit losses of $21,186, offset partially by other income of $20,515. This was partly offset by cash outflows of $67,454 in working capital.

Investing Activities

Net cash used in investing activities decreased by $26,857 to $108,380 for the year ended December 31, 2024 from $135,237 for the year ended December 31, 2023. This decrease is primarily attributed to a decrease in purchases of merchant portfolios of $21,957, a decrease in net cash outflows for merchant reserves of $18,710, offset partially by an increase in purchase of property, plant and equipment and other intangible asset expenditures of $9,550.

Financing Activities

Net cash used in financing activities decreased by $490,229 to $280,799 for the year ended December 31, 2024 from $771,028 for the year ended December 31, 2023. This decrease primarily resulted from the outflow of the movement in settlement funds - merchant and customers, net of $163,837 for the year ended December 31, 2024, compared to an outflow of $588,151 for the year ended December 31, 2023.

The Company’s regulatory obligations in the United Kingdom and Ireland include the requirement to safeguard customer funds that have been received either in exchange for electronic money (“e-money”) issued or within the transaction settlement cycle to merchants. Such amounts are recorded as an asset in our Consolidated Statements of Financial Position, in customer accounts and other restricted cash, net which is presented as part of cash, cash equivalents, customer accounts and other restricted cash, net as reported in the Consolidated Statements of Cash Flows.

The Company also has a corresponding liability to its