Quarterly report pursuant to Section 13 or 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Cash Flows (Used In) Provided By Operating Activities:          
Net income     $ 1,942,740 $ 850,067  
Adjustments to reconcile net income to net cash (used in) provided by operating activities:          
Amortization of deferred financing costs     301,105 169,258  
Amortization of intangible assets $ 488,455 $ 488,455 976,909 976,909  
Amortization of right-of-use assets     50,021    
Stock-based compensation     15,407    
Forgiveness of Paycheck Protection Program loan (287,143)   (287,143) (10,000)  
Paid-in-kind interest       192,367  
Deferred income taxes 38,966   38,966    
Gain from revaluation and settlement of earnout liability       (21,232)  
Loss on redemption of non-participating preferred units     590,689    
Bad debt expense 27,224 31,815 24,799 31,815  
Changes in operating assets and liabilities:          
Accounts receivable     (6,996,667) (175,906)  
Prepaid expenses and other assets     386,258 (91,541)  
Accounts payable     3,406,355 438,105  
Accrued liabilities     601,699 140,657  
Income taxes payable     47,710    
Deferred revenues     (905,111) 146,819  
Operating lease liability     (49,422)    
Related party payable     (70,801)    
Net cash provided by operating activities     73,514 2,647,318  
Cash Flows Provided By (Used In) Financing Activities:          
Payments on term loan     (275,000) (77,801)  
Payment of deferred financing costs     (185,093)    
Proceeds from Paycheck Protection Program loan       287,143  
Proceeds from Issuance of Class A common stock, net of transaction costs     11,212,043    
Redemption of common units     (3,237,838)    
Redemption of non-participating preferred units     (7,046,251)    
Payments on seller notes and earnouts payable       (309,491)  
Distributions to members     (309,991) (652,569)  
Net cash provided by (used in) financing activities     157,870 (752,718)  
Net increase in cash and cash equivalents     231,384 1,894,600  
Cash and cash equivalents, beginning of the period     4,684,431 1,611,998 $ 1,611,998
Cash and cash equivalents, end of the year $ 4,915,815 $ 3,506,598 4,915,815 3,506,598 $ 4,684,431
Supplemental Disclosure of Cash Flow Information:          
Cash paid for taxes       54,000  
Cash paid for interest     1,058,548 $ 1,279,603  
Non-cash Financing Activities:          
Transaction costs related to issuances of Class A shares included in accounts payable and accrued liabilities     1,045,000    
Common unit redemption balance included in accrued liabilities     3,962,162    
Outside basis difference in partnership     3,234,000    
TRA payable to Direct Digital Management, LLC     2,748,900    
Tax benefit on TRA     $ 485,100