# EDGAR Filing Document

**Accession Number:** 0001845815
**File Stem:** 0001558370-23-002350
**Filing Date:** 2023-2
**Character Count:** 33111
**Document Hash:** e4ba4033a1a12bcc1b01a72845e1175a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001558370-23-002350.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001558370-23-002350

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230228

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Payoneer Global Inc.
- **CENTRAL INDEX KEY:** 0001845815
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-BUSINESS SERVICES, NEC [7389]
- **IRS NUMBER:** 861778671
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40547
- **FILM NUMBER:** 23685298

**BUSINESS ADDRESS:**
- **STREET 1:** 150 W 30TH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001
- **BUSINESS PHONE:** 212-600-9272

**MAIL ADDRESS:**
- **STREET 1:** 150 W 30TH STREET
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10001

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** New Starship Parent, Inc.
- **DATE OF NAME CHANGE:** 20210211

?xml version='1.0' encoding='UTF-8'?

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **February 28, 2023**

---

| |
|:---|
| **Payoneer Global Inc.** |
| (Exact Name of Registrant as Specified in its Charter) |

---

---

| | | |
|:---|:---|:---|
| **Delaware** | **001-40547** | **86-1778671** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

---

| | |
|:---|:---|
| **150 W 30th St**<br>**New York, New York** | **10001** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

**Registrant's telephone number, including area code: (212) 600-9272**

---

| |
|:---|
| **N/A** |
| (Former name or former address, if changed since last report) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, par value $0.01 per share | PAYO | The Nasdaq Stock Market LLC |
| Warrants, each exercisable for one share of common stock, $0.01 par value, at an exercise price of $11.50 per share | PAYOW | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (Sec.230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (Sec.240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On February 28, 2023, Payoneer Global Inc. issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that Section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

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(d) Exhibits.

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| | |
|:---|:---|
| **Exhibit No.**  | **Description** |
| 99.1 | [Press release, dated February 28, 2023, issued by Payoneer Global Inc.](payo-20230228xex99d1.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

**SIGNATURE**

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **PAYONEER GLOBAL INC.** | **PAYONEER GLOBAL INC.** |
| February 28, 2023 | By: | /s/ Scott Galit |
|  |  | Name: Scott Galit |
|  |  | Title: Co-Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Payoneer Reports Fourth Quarter and Full Year 2022 Financial Results**

*Record 2022 results*

*Revenue growth of more than 30% year-over-year for both Q4 and FY 2022*

NEW YORK – February 28, 2023 – Payoneer Global Inc. ("Payoneer" or the "Company") (NASDAQ: PAYO), the financial technology company empowering the world's small businesses to transact, do business and grow globally, today reported financial results for its fourth quarter and full year ended December 31, 2022.

**Fourth Quarter and Full Year 2022 Financial Highlights**

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| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  |  |  |  |  | **YoY** |  |  |  |  |  | **YoY** |  |
| **($ in mm)** | **4Q 2021** |  | **1Q 2022** |  | **2Q 2022** |  | **3Q 2022** |  | **4Q 2022** |  | **Change** |  | **2021** |  | **2022** |  | **Change** |  |
| Revenue | $139.2 |  | $137.0 |  | $148.2 |  | $158.9 |  | $183.6 |  | 32% |  | $473.4 |  | $627.6 |  | 33 | % |
| *Transaction costs as a % of revenue* | *20.2* | *%* | *18.7* | *%* | *17.7* | *%* | *17.6* | *%* | *16.6* | *%* | *(360)* | *bps* | *21.4* | *%* | *17.6* | *%* | *(380)* | *bps* |
| Revenue less transaction costs | $111.1 |  | $111.4 |  | $122.0 |  | $130.9 |  | $153.2 |  | 38% |  | $371.9 |  | $517.5 |  | 39 | % |
| Net income (loss) | (18.9) |  | 20.2  |  | 4.4  |  | (26.5) |  | (10.2) |  | N.M. |  | (34.0) |  | (12.0) |  | N.M. |  |
| Adjusted EBITDA | 13.5 |  | 10.4 |  | 14.7 |  | 12.7 |  | 10.6 |  | (22) | % | 28.2 |  | 48.5 |  | 72 | % |
| <u>Operational Metrics</u> |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Volume ($bn) | $16.2 |  | $14.6 |  | $14.6 |  | $15.1 |  | $16.9 |  | 5% |  | $56.7 |  | $61.3 |  | 8 | % |
| *Revenue as a % of volume ("Take Rate")* | *86* | *bps*  | *94* | *bps*  | *101* | *bps*  | *105* | *bps*  | *109* | *bps*  | *23* | *bps*  | *84* | *bps*  | *102* | *bps*  | *18* | *bps* |

---

"Payoneer reported record fourth quarter and full year revenue, generating more than 30% year-over-year growth for both periods," said Scott Galit, Co-Chief Executive Officer of Payoneer. "The strength of our diversified, scaled business model, global infrastructure, and trusted brand is apparent in our results. Payoneer is serving SMBs of all sizes, across a diverse range of industries, from more than 190 countries and territories."

"Looking ahead, we expect to generate 28% revenue growth and significantly increase adjusted EBITDA based on the midpoint of our 2023 guidance," said John Caplan, Co-Chief Executive Officer of Payoneer. "Payoneer is at a pivotal point in our evolution, and we are operating the business with a focus on long-term growth and operating efficiency. We are becoming the partner of choice for emerging market SMBs who need to manage their global financial activities in an increasingly digital world. I have every confidence in our team and in our ability to continue to execute and innovate in the quarters and years ahead."

**Full Year 2022 Business Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Strategic focus on diversifying geographically, resulted in nearly 35% of 2022 revenue coming from Latin America, Asia-Pacific, and South Asia, Middle East and North Africa, compared to approximately 20% in 2018

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• B2B AP/AR volumes increased 39% year-over-year, representing 12% of total volume in 2022, up from 9% in 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Commercial Mastercard usage up 3-fold year-over-year and is at a run-rate of more than $1 billion in annual spend

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Take rate of 102 basis points, up 18 basis points year-over-year driven by B2B AP/AR and Commercial Mastercard growth, as well as continued geographic diversification and higher interest income revenue

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transaction costs as a percentage of revenue decreased 380 basis points-over-year, highlighting our ability to leverage the benefits of scale

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strengthened executive team to drive profitable growth and deliver long-term value. This includes Co-CEO and incoming CEO John Caplan, Deputy and incoming CFO Bea Ordonez, Chief Growth Officer Adam Cohen, and Chief Platform Officer Assaf Ronen

**Fourth Quarter 2022 Business Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $5.8 billion of customer funds as of December 31, 2022, up nearly $800 million sequentially

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Received approval in principle for a Major Payment Institution license in Singapore. Additionally, in January 2023 Payoneer received its e-Money license in the UK

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Established the Payoneer Foundation with initial Company support of $2.5 million. Giving will focus on international organizations that support small business development, female entrepreneurs, young people in business, financial education and entrepreneurship

**2023 Guidance**

"Payoneer's 2022 results demonstrated our ability to deliver strong revenue growth while significantly expanding adjusted EBITDA," said Michael Levine, Chief Financial Officer. "We intend to continue our balanced capital allocation approach for 2023 and remain focused on delivering long-term value for our customers, employees, and shareholders."

"In 2023, we will focus our customer acquisition strategy on larger, more profitable SMBs. We will also invest in our technology platform to accelerate our product delivery and serve more of customers' needs while driving increased operating efficiency," said Bea Ordonez, Deputy Chief Financial Officer and incoming CFO. "We expect our high value services, including B2B AP/AR, Commercial Mastercard, Working Capital, and Checkout, to continue growing faster than the overall business. And we intend to continue diversifying our geographic revenue mix to focus on high growth, high margin geographies.

"Our 2023 revenue guidance includes a $22 million impact in the second half of 2023 from lower revenues related to onboarding services provided to a large enterprise client, as well as the full year impact of the closure of payments into Russia. Adjusted EBITDA guidance also includes approximately $15 million of strategic investment linked to enhancing our technology platform, and $15 million of incentive payments related to a large enterprise client."

2023 guidance is as follows:

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| | |
|:---|:---|
| Revenue | $800 million - $810 million |
| Transaction costs | ~16.0% of revenue |
| Adjusted EBITDA <sup>(1)</sup> | $120 million to $130 million |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Please refer to "Financial Information; Non-GAAP Financial Measures" below

Guidance for fiscal year, where adjusted, is provided on a non-GAAP basis, which Payoneer will continue to identify as it reports its future financial results. The Company cannot reconcile its expected adjusted EBITDA to expected net income under "2023 Guidance" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time, which unavailable information could have a significant impact on the Company's GAAP financial results.

**Webcast**

Payoneer will host a live webcast of its earnings on a conference call with the investment community beginning at 4:30 p.m. ET today, February 28, 2023. To access the webcast, go to the investor relations section of the Company's website at https://investor.payoneer.com. A replay will be available on the investor relations website following the call.

**About Payoneer**

Payoneer is the financial technology company empowering the world's small businesses to transact, do business and grow globally. Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. It is our mission to enable anyone anywhere to participate and succeed in the global digital economy. Since our founding, we have built a global financial platform that has already made it easier for millions of SMBs, particularly in emerging markets, to pay and get paid, manage their funds, and grow their business.

**Forward-Looking Statements**

This press release includes, and oral statements made from time to time by representatives of Payoneer, may be considered "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Payoneer's future financial or operating performance. For example, projections of future volume, revenue, transaction cost and adjusted EBITDA are

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forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expect," "intend," "plan," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other factors which could cause actual results to differ materially from those expressed or implied by such forward looking statements. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Payoneer and its management, as the case may be, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: (1) changes in applicable laws or regulations; (2) the possibility that Payoneer may be adversely affected by geopolitical and other economic, business and/or competitive factors; (3) Payoneer's estimates of its financial performance; (4) the outcome of any legal proceedings; and (5) other risks and uncertainties set forth in Payoneer's Annual Report on Form 10-K for the period ended December 31, 2022 and future reports that Payoneer may file with the SEC from time to time. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Payoneer does not undertake any duty to update these forward-looking statements.

**Financial Information; Non-GAAP Financial Measures**

Some of the financial information and data contained in this press release, such as adjusted EBITDA, have not been prepared in accordance with United States generally accepted accounting principles ("GAAP"). Payoneer uses these non-GAAP measures to compare Payoneer's performance to that of prior periods for budgeting and planning purposes. Payoneer believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Payoneer's results of operations. Payoneer's method of determining these non-GAAP measures may be different from other companies' methods and, therefore, may not be comparable to those used by other companies and Payoneer does not recommend the sole use of these non-GAAP measures to assess its financial performance. Payoneer management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Payoneer's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. You should review Payoneer's financial statements, which are included in Payoneer's Annual Report on Form 10-K for the year ended December 31, 2022 and its subsequent Quarterly Reports on Form 10-Q, and not rely on any single financial measure to evaluate Payoneer's business.

Non-GAAP measures include the following item:

<u>Adjusted EBITDA</u>: We provide adjusted EBITDA, a non-GAAP financial measure that represents our net income (loss) adjusted to exclude: M&A related income, stock-based compensation expenses, reorganization related expenses, share in losses (gain) of associated company, gain from change in fair value of warrants, other financial expense (income), net, taxes on income, and depreciation and amortization.

Other companies may calculate the above measure differently, and therefore Payoneer's measures may not be directly comparable to similarly titled measures of other companies.

**Investor Contact:**

Michelle Wang

investor@payoneer.com

**Media Contact:**

PR@payoneer.com

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**TABLE - 1**

**PAYONEER GLOBAL INC.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS**

(U.S. dollars in thousands, except share and per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(Unaudited)** | **(Unaudited)** | **(Audited)** | **(Audited)** |
|  | **Three months ended** | **Three months ended** | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenues | $183558 | $139219 | $627623 | $473403 |
| Transaction costs ($1,491 and $220 interest expense and fees associated with related party transaction in 2022 and 2021 respectively) | 30392 | 28130 | 110165 | 101476 |
| Other operating expenses | 41304 | 31623 | 149199 | 124649 |
| Research and development expenses | 32902 | 25462 | 115041 | 80760 |
| Sales and marketing expenses | 52194 | 33901 | 164564 | 114331 |
| General and administrative expenses | 29997 | 19762 | 90010 | 64399 |
| Depreciation and amortization | 5333 | 4534 | 20858 | 17997 |
| &nbsp;&nbsp;**Total operating expenses** | 192122 | 143412 | 649837 | 503612 |
| **Operating loss** | (8564) | (4193) | (22214) | (30209) |
| **Financial income (expense):**  |  |  |  |  |
| Gain (loss) from change in fair value of Warrants | 5031 | (11573) | 33963 | 11824 |
| Other financial income (expense), net | 1005 | 11 | (10131) | (6854) |
| **Financial income, net** | 6036 | (11562) | 23832 | 4970 |
| **Income (loss) before taxes on income and share in losses of associated company** | (2528) | (15755) | 1618 | (25239) |
| **Taxes on income**  | 7610 | 3121 | 13586 | 8711 |
| **Share in losses of associated company** | 13 | 26 | 2 | 37 |
| **Net loss** | $(10151) | $(18902) | $(11970) | $(33987) |
| **Per Share Data** |  |  |  |  |
| Net loss per share attributable to common stockholders — Basic and Diluted loss per share | $(0.03) | $(0.06) | $(0.03) | $(0.33) |
| Weighted average common shares outstanding — Basic and Diluted  | 352756697 | 340580941 | 348044831 | 202881911 |
| **Other comprehensive income (loss), before tax** |  |  |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustments | 2087 | (529) | (2429) | (1921) |
| **Other comprehensive income (loss), before tax** | 2087 | (529) | (2429) | (1921) |
| **Income tax expense related to items of other comprehensive income (loss)** |  |  |  |  |
| **Other comprehensive income (loss), net of tax** | 2087 | (529) | (2429) | (1921) |
| **Comprehensive loss** | $(8064) | $(19431) | $(14399) | $(35908) |

---

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<u>Disaggregation of revenue</u>

The following table presents revenue recognized from contracts with customers as well as revenue from other sources, consisting of interest income:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue recognized at a point in time | $137813 | $128383 | $533213 | $440582 |
| Revenue recognized over time | 9851 | 9948 | 39118 | 30119 |
| Revenue from contracts with customers | 147664 | 138331 | 572331 | 470701 |
| Revenue from other sources | 35894 | 888 | 55292 | 2702 |
| Total revenues | $183558 | $139219 | $627623 | $473403 |

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**TABLE - 2**

**PAYONEER GLOBAL INC.**

**RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (UNAUDITED)**

(U.S. dollars in thousands)

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Year ended** | **Year ended** |
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Net income (loss) | $(10151) | $(18902) | $(11970) | $(33987) |
| Depreciation & amortization | 5333 | 4534 | 20858 | 17997 |
| Taxes on income | 7610 | 3121 | 13586 | 8711 |
| Other financial expenses (income), net | (1005) | (11) | 10131 | 6854 |
| **EBITDA** | **1787** | **(11258)** | **32605** | **(425)** |
| Stock based compensation expenses(1) | 13827 | 13455 | 52150 | 37012 |
| Reorganization related expenses(2) |  |  |  | 5087 |
| Share in losses of associated company | 13 | 26 | 2 | 37 |
| M&A related expenses(3) |  | (257) | (2323) | (1721) |
| Gain from change in fair value of Warrants(4) | (5031) | 11573 | (33963) | (11824) |
| **Adjusted EBITDA** | $**10596** | $**13539** | $**48471** | $**28166** |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Three months ended,**  | **Three months ended,**  | **Three months ended,**  | **Three months ended,**  | **Three months ended,**  |
|  | **Dec. 31, 2021** | **Mar. 31, 2022** | **June 30, 2022** | **Sept. 30, 2022** | **Dec. 31, 2022** |
| Net income (loss) | $(18902) | $20211 | $4422 | $(26452) | $(10151) |
| Depreciation & amortization | 4534 | 4455 | 5171 | 5899 | 5333 |
| Taxes on income | 3121 | 1967 | 1374 | 2635 | 7610 |
| Other financial expenses (income), net | (11) | 2695 | 4824 | 3617 | (1005) |
| **EBITDA** | **(11258)** | **29328** | **15791** | **(14301)** | **1787** |
| Stock based compensation expenses(1) | 13455 | 12908 | 11890 | 13525 | 13827 |
| Reorganization related expenses(2) |  |  |  |  |  |
| Share in losses (gain) of associated company | 26 | (20) | 7 | 2 | 13 |
| M&A related income(3) | (257) | (619) | (116) | (1588) |  |
| Gain from change in fair value of Warrants(4) | 11573 | (31196) | (12831) | 15095 | (5031) |
| **Adjusted EBITDA** | $**13539** | $**10401** | $**14741** | $**12733** | $**10596** |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents non-cash charges associated with stock-based compensation expense, which has been, and will continue to be for the foreseeable future, a significant recurring expense in our business and an important part of our compensation strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents the non-recurring reorganizational costs that were not recorded as a reduction of additional paid in capital. The amounts relate to legal and professional services associated with our 2021 Reorganization with FTAC Olympus Acquisition Corp.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Represents non-recurring fair value adjustment of a liability related to our 2020 acquisition of optile.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Changes in the estimated fair value of the warrants are recognized as gain or loss on the statements of operations. The impact is removed from EBITDA as it represents market conditions that are not in control of the Company.

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**TABLE - 3**

**PAYONEER GLOBAL INC.**

**LOSS PER SHARE** 

(U.S. dollars in thousands, except share and per share data)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **(Unaudited)** | **(Unaudited)** | **(Audited)** | **(Audited)** |
|  | **Three months ended December 31,** | **Three months ended December 31,** | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022** | **2021** | **2022** | **2021** |
| Numerator: |  |  |  |  |
| Net loss | $(10151) | $(18902) | $(11970) | $(33987) |
| Less dividends and revaluation attributable to redeemable and redeemable convertible preferred stock |  |  |  | 33632 |
| Net loss attributable to common stockholders | $(10151) | $(18902) | $(11970) | $(67619) |
| Denominator: |  |  |  |  |
| Weighted average common shares outstanding — basic and diluted | 352756697 | 340580941 | 348044831 | 202881911 |
| Net loss per share attributable to common stockholders — basic and diluted | $(0.03) | $(0.06) | $(0.03) | $(0.33) |

---

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**TABLE - 4**

**PAYONEER GLOBAL INC.**

**CONSOLIDATED BALANCE SHEETS** 

(U.S. dollars in thousands, except share and per share data)

---

| | | |
|:---|:---|:---|
|  | **December 31,**  | **December 31,**  |
|  | **2022** | **2021** |
| **Assets:** |  |  |
| **Current assets:** |  |  |
| &nbsp;&nbsp;Cash and cash equivalents  | $543299 | $465926 |
| &nbsp;&nbsp;Restricted cash | 2882 | 3000 |
| &nbsp;&nbsp;Customer funds | 5838612 | 4401254 |
| &nbsp;&nbsp;Accounts receivable (net of allowance of $246 in 2022 and $119 in 2021) | 12878 | 13844 |
| &nbsp;&nbsp;Capital advance receivables (net of allowance of $5,311 in 2022 and $2,426 in 2021) | 37155 | 53675 |
| &nbsp;&nbsp;Other current assets | 36278 | 25024 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current assets** | 6471104 | 4962723 |
| **Non-current assets:** |  |  |
| &nbsp;&nbsp;Property, equipment and software, net | 14392 | 12140 |
| &nbsp;&nbsp;Goodwill | 19889 | 21127 |
| &nbsp;&nbsp;Intangible assets, net | 45444 | 37529 |
| &nbsp;&nbsp;Restricted cash | 4848 | 5113 |
| &nbsp;&nbsp;Deferred taxes | 4169 | 4900 |
| &nbsp;&nbsp;Investment in associated company | 6429 | 7013 |
| &nbsp;&nbsp;Severance pay fund  | 1095 | 1723 |
| &nbsp;&nbsp;Operating lease right of use assets | 15260 | 12943 |
| &nbsp;&nbsp;Other assets | 12021 | 13541 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total assets** | $6594651 | $5078752 |
| **Liabilities and shareholders' equity:** |  |  |
| **Current liabilities:** |  |  |
| &nbsp;&nbsp;Trade payables | $41566 | $17200 |
| &nbsp;&nbsp;Outstanding operating balances | 5838612 | 4401254 |
| &nbsp;&nbsp;Other payables | 97334 | 79374 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total current liabilities** | 5977512 | 4497828 |
| **Non-current liabilities:** |  |  |
| &nbsp;&nbsp;Long-term debt from related party | 16138 | 13665 |
| &nbsp;&nbsp;Warrant liability | 25914 | 59877 |
| &nbsp;&nbsp;Other long-term liabilities | 29831 | 20309 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | 6049395 | 4591679 |
| **Commitments and contingencies** |  |  |
| **Shareholders' equity:** |  |  |
| &nbsp;&nbsp;Preferred stock, $0.01 par value, 380,000,000 shares authorized; no shares were issued and outstanding at December 31, 2022 and December 31, 2021, respectively. |  |  |
| &nbsp;&nbsp;Common stock, $0.01 par value, 3,800,000,000 and 3,800,000,000 shares authorized; 352,842,025 and 340,384,157 shares issued and outstanding at December 31, 2022 and December 31, 2021, respectively. | 3528 | 3404 |
| &nbsp;&nbsp;Additional paid-in capital | 650433 | 575470 |
| &nbsp;&nbsp;Accumulated other comprehensive income (loss) | (176) | 2253 |
| &nbsp;&nbsp;Accumulated deficit | (108529) | (94054) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total shareholders' equity**  | 545256 | 487073 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' equity** | $6594651 | $5078752 |

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**TABLE - 5**

**PAYONEER GLOBAL INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

(U.S. dollars in thousands)

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| | | |
|:---|:---|:---|
|  | **Year ended December 31** | **Year ended December 31** |
|  | **2022** | **2021** |
| **Cash Flows from Operating Activities** |  |  |
| &nbsp;&nbsp;Net loss | $(11970) | $(33987) |
| &nbsp;&nbsp;**Adjustment to reconcile net loss to net cash provided by operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 20858 | 17997 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred taxes | 731 | (1216) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expenses | 52149 | 37012 |
| &nbsp;&nbsp;&nbsp;&nbsp;Share in losses of associated company | 2 | 37 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gain from change in fair value of Warrants | &nbsp;&nbsp;&nbsp;&nbsp;(33963) | (11824) |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction costs allocated to Warrants |  | 5087 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency re-measurement (gain) loss | 2752 | 1103 |
| &nbsp;&nbsp;**Changes in operating assets and liabilities, net of the effects of business combinations:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (11421) | (14694) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables | 24284 | 469 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 224 | (432) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 964 | 3933 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital advance extended to customers | (223819) | (330510) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital advance collected from customers | 237834 | 342930 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other payables | 16608 | 691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other long-term liabilities | (3480) | (4775) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 10686 | 9525 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 1521 | (1331) |
| **Net cash provided by operating activities** | $&nbsp;&nbsp;&nbsp;&nbsp;83960 | $20015 |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;Purchase of property, equipment and software | (10504) | (6891) |
| &nbsp;&nbsp;Capitalization of internal use software | (18329) | (14008) |
| &nbsp;&nbsp;Severance pay fund (contributions) distributions, net | 628 | (99) |
| &nbsp;&nbsp;Customer funds in transit, net | 33939 | 31154 |
| &nbsp;&nbsp;Acquisition of Optile, net of cash acquired |  |  |
| **Net cash provided by (used in) investing activities** | $5734 | $10156 |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;Proceeds from issuance of shares in connect with stock based compensation plan | 21346 | 19000 |
| &nbsp;&nbsp;Outstanding operating balances, net | 1437358 | 1054530 |
| &nbsp;&nbsp;Borrowings under related party facility | 29363 | 17431 |
| &nbsp;&nbsp;Repayments under related party facility | (26755) | (3766) |
| &nbsp;&nbsp;Repayments under loan and security agreement |  | (40025) |
| &nbsp;&nbsp;Issuance of redeemable preferred stock and warrants, net |  |  |
| &nbsp;&nbsp;Redemption of redeemable preferred stock |  | (39803) |
| &nbsp;&nbsp;Proceeds from Reverse Recapitalization, net |  | 108643 |
| &nbsp;&nbsp;Proceeds from PIPE financing, net |  | 280185 |
| **Net cash provided by financing activities** | $1461312 | $1396195 |
| **Effect of exchange rate changes on cash and cash equivalents** | $(2719) | $(1222) |
| **Net change in cash, cash equivalents, restricted cash and customer funds** | 1548287 | 1425144 |
| **Cash, cash equivalents, restricted cash and customer funds at beginning of the year** | 4838433 | 3413289 |
| **Cash, cash equivalents, restricted cash and customer funds at end of the year** | $6386720 | $4838433 |

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