BM TECHNOLOGIES, INC. – 10-K – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A") is intended to provide a reader of our financial statements
with a narrative from the perspective of our management on our financial
condition, results of operations, liquidity and certain other factors that may
affect our future results. The following discussion and analysis should be read
in conjunction with our Consolidated Financial Statements and the related notes
included in Item 8 "Consolidated Financial Statements and Supplementary Data" of
this Form 10-K.

FORWARD LOOKING STATEMENTS

This Annual Report on Form 10-K contains "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements about future financial and operating
results, our plans, objectives, expectations and intentions with respect to
future operations, products and services; and other statements identified by
words such as "will likely result," "are expected to," "will continue," "is
anticipated," "estimated," "believe," "intend," "plan," "projection," "outlook"
or words of similar meaning. These forward-looking statements include, but are
not limited to, statements regarding the Company's industry and market sizes,
future opportunities for the Company and the Company's estimated future results.
Such forward-looking statements are based upon the current beliefs and
expectations of our management and are inherently subject to significant
business, economic and competitive uncertainties and contingencies, many of
which are difficult to predict and generally beyond our control. Actual results
and the timing of events may differ materially from the results anticipated in
these forward-looking statements.



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BUSINESS OVERVIEW

BM Technologies, Inc. ("BMTX" or "the Company") (formerly known as BankMobile)
provides state-of-the-art high-tech digital banking and disbursement services to
consumers and students nationwide through a full service fintech banking
platform, accessible to customers anywhere and anytime through digital channels.
BMTX facilitates deposits and banking services between a customer and our
Partner Bank, Customers Bank, which is a related party and a Federal Deposit
Insurance Corporation ("FDIC") insured bank. BMTX's business model leverages
partners' existing customer bases to achieve high volume, low-cost customer
acquisition in its Disbursement, BaaS, and Workplace Banking businesses.

BMTX has four primary revenue sources: interchange and card revenue, servicing
fees from our Partner Bank, account fees, and university fees. The majority of
revenues are driven by customer activity (deposits, spend, transactions, etc.)
but may be paid or passed through by the Company's Partner Bank, universities,
or paid directly by customers. The Company is actively working on its pipeline
of prospective new BaaS customers to offer a suite of financial services
products.

BMTX is a Delaware corporation, originally incorporated as Megalith Financial
Acquisition Corp in November, 2017 and renamed BM Technologies, Inc. in January
2021 at the time of the merger between Megalith Financial Acquisition Corp and
BankMobile Technologies, Inc. Until January 4, 2021, BankMobile Technologies,
Inc. was a wholly-owned subsidiary of Customers Bank ("Customers Bank").
Customers Bank is a Pennsylvania state-chartered bank and a wholly-owned
subsidiary of Customers Bancorp, Inc. (the "Bancorp" or "Customers Bancorp"), a
bank holding company. Customers Bank is our Partner Bank. Our Partner Bank holds
the FDIC insured deposits that we source and service and is the issuing bank on
our debit cards. Our Partner Bank pays us a deposit servicing fee for the
deposits generated and passes through interchange income earned from debit
transactions. Deposit servicing fees and interchange income are our largest
revenue sources.

BMTX is not a bank, does not hold a bank charter, and it does not provide
banking services, and as a result we are not subject to direct banking
regulation, except as a service provider to our Partner Bank. We are also
subject to the regulations of the ED, due to our student Disbursements business,
and are periodically examined by them. Our contracts with most of our higher
education institutional clients requires us to comply with numerous laws and
regulations, including, where applicable, regulations promulgated by the ED
regarding the handling of student financial aid funds received by institutions
on behalf of their students under Title IV; FERPA; the Electronic Fund Transfer
Act and Regulation E; the USA PATRIOT Act and related anti-money laundering
requirements; and certain federal rules regarding safeguarding personal
information, including rules implementing the privacy provisions of GLBA. Other
products and services offered by us may also be subject to other federal and
state laws and regulations.

BMTX's higher education serviced deposits fluctuate throughout the year due
primarily to the relationship between the deposits level and the typical cycles
of student disbursements from higher education institutions. Serviced deposit
balances typically experience seasonal lows in December and July and experience
seasonal highs in September and January when individual account balances are
generally at their peak. Debit spend follows a similar seasonal trend but may
slightly lag increases in balances.

On November 14, 2021, we entered into the Agreement and Plan of Reorganization
and Merger with FSB, a Washington state-chartered bank.

Merger with Megalith Financial Acquisition Corporation

On January 4, 2021, BankMobile Technologies, Inc. ("BankMobile"), Megalith
Financial Acquisition Corp. ("Megalith"), and MFAC Merger Sub Inc., consummated
the transaction contemplated by the merger agreement entered into on August 6,
2020. In connection with the closing of the merger, Megalith Financial
Acquisition Corp. changed its name to BM Technologies, Inc. (the "Company").
Effective January 6, 2021, the Company's units ceased trading, and the Company's
common stock and warrants began trading on the NYSE American under the symbols
"BMTX" and "BMTX-WT," respectively.

The merger was accounted for as a reverse recapitalization in accordance with
U.S. generally accepted accounting principles ("U.S. GAAP"). Under this method
of accounting, Megalith was treated as the "acquired" company for financial
reporting purposes and as a result, the transaction was treated as the
equivalent of BankMobile issuing stock for the net assets of Megalith,
accompanied by a recapitalization. The excess of the fair value of the shares
issued over the value of the net monetary assets of Megalith was recognized as
an adjustment to shareholders' equity. There was no goodwill or other intangible
assets recorded in the merger. Prior periods presented for comparative purposes
represent the balances and activity of BankMobile Technologies, Inc. (other than
shares which were retroactively restated in connection with the merger).

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COVID-19

In March 2020, the outbreak of COVID-19 was recognized as a pandemic by the
World Health Organization. The spread of COVID-19 created a global public health
crisis that resulted in unprecedented uncertainty, economic volatility, and
disruption in financial markets and in governmental, commercial, and consumer
activity in the United States and globally, including the markets that BMTX
serves. In response to the pandemic, we enabled nearly all of our employees to
work remotely and limited business travel. We are a "Remote First" company and
most of our employees have no assigned work location or regular in-office work
requirement.

With the initial outbreak of COVID-19 in 2020, the Company experienced an
initial decline in revenues as compared to the pre-COVID-19 period. On March 27,
2020, the "Coronavirus Aid, Relief, and Economic Security ("CARES") Act" was
signed into law and contained substantial tax and spending provisions intended
to address the impact of the COVID-19 pandemic and stimulate the economy,
including cash payments to taxpayers, increased unemployment benefits, and to
support higher education through the Higher Education Emergency Relief Fund
("HEERF"). This stimulus resulted in increased serviced deposit balances, debit
card spend, and revenues, a trend that continued into early 2021. However, we
have seen the growth rate slow in recent periods compared to the accelerated
growth rate we experienced during early 2021.

BUSINESS MEASUREMENTS

We believe that the following business measurements are important performance
indicators for our business:

•Debit card POS spend (higher education and new business). Spend represents the
dollar amount that our customers spend on their debit cards through a signature
or PIN network. Spend is a key performance indicator, as the company earns a
small percentage of every dollar spent as interchange income and spend is the
primary driver of our card revenues.

•Serviced deposits (ending and average; higher education and new business).
Serviced deposits represent the dollar amount of deposits that are in customer
accounts serviced by our Company. Our deposit servicing fee is based on a
contractual arrangement with our Partner Bank and the average balance of
serviced deposits is the primary driver of our deposit servicing fees. Average
deposits have the strongest correlation to current period serviced deposits, but
ending deposits provide information at a point in time and serve as the starting
point for the following period.

•Higher education retention. Retention is a key measure of our value proposition
with higher education customers. We measure retention in terms of Signed Student
Enrollments (SSEs), which represents the number of students enrolled at higher
education institutions. Retention is calculated by subtracting lost SSEs from
starting SSEs and taking that amount as a percentage of the starting SSEs.

•Higher education financial aid refund disbursement. Represents the dollar
amount of all funds that we process for a college or university partner, whether
it is distributed by ACH, check, or into a BankMobile Vibe account. This is a
measure of the business we process for our higher education partners in exchange
for their subscription and other fees, as well as a measure of the potential
that we have the opportunity to capture into our serviced accounts.

•Higher education organic deposits. Organic deposits represent the dollar total
of all deposits made into a higher education BankMobile Vibe account except for
funds processed through a college or university partner. Because this includes
funds that the account holder adds to the account and excludes the funds
processed through the higher education institution, it is viewed as a strong
indicator of traction with the customer.

CRITICAL ACCOUNTING POLICIES

We have adopted various accounting policies that govern the application of U.S.
GAAP and that are consistent with general practices within the fintech industry
in the preparation of these financial statements. Our significant accounting
policies are described in Note 2 - Basis of Presentation and Significant
Accounting Policies in the Notes to the Consolidated Financial Statements
herein.


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Certain accounting policies involve significant judgments and assumptions by us
that have a material impact on the carrying value of certain assets. We consider
these accounting policies to be critical accounting policies. The judgments and
assumptions used are based on historical experience and other factors, which are
believed to be reasonable under the circumstances. Due to the nature of the
judgments and assumptions management makes, actual results could differ from
these judgments and estimates, which could have a material impact on the
carrying values of our assets.

The critical accounting policies that are both important to the portrayal of our
financial condition and results of operations and require complex, subjective
judgments are the accounting policies for the following: share-based
compensation, provision for operating losses, income taxes, goodwill and other
intangibles, developed software, and accounting for public and private warrants.

Share-Based Compensation Expense

The Company uses share-based compensation, including stock, restricted stock
units and performance stock units, to provide long-term performance incentives
for its employees and directors. Share-based compensation is recognized on a
straight-line basis over the requisite service period of the award based on
their grant-date fair value for time-based awards. Compensation related to
performance-based awards are recognized over the period the performance
obligation is expected to be satisfied. Forfeitures are recognized as they
occur. Share-based compensation expense is included in Salaries and employee
benefits. In addition, the holders of restricted shares may elect to surrender a
portion of their shares on the vesting date to cover their income tax
obligations.

Provision for Operating Losses

The provision for operating losses represents our payments for losses resulting
from fraud or theft-based transactions that have generally been disputed by our
serviced deposit account holders and Regulation E card claim losses incurred by
us, as well as estimated liability for such losses where such disputes have not
been resolved as of the end of the reporting period. Fraud or theft-based
related losses are recognized when realized or incurred. Reg E claims made up a
vast majority of the losses. The remaining fraud or theft-based losses are
mostly Check Fraud and ACH/Wire Fraud.

The main source of Reg E losses is card holder claims of unauthorized use of
their debit card. Drivers include, but are not limited to transaction purchase
volume, in person vs. online, macroeconomic conditions, changes in customer
behavior, and regulatory changes. A customer has 60 days to dispute a charge.
BMTX may decline the claim within 10 days or advance the funds to the account
holder if the investigation is still pending. BMTX may continue to investigate
transactions for 35 more days, before making its final decision. At conclusion
of the investigation, the advance is reversed or is made permanent. BMTX's loss
includes closed disputes where the customer is entitled to keep the funds
advanced, an expected loss on actual disputes that are pending investigation,
which is based on historical experience, as well as an estimate of disputes not
yet disputed. The estimated liability for disputes not yet disputed is created
by applying historical rates of transactions disputed after the reporting period
end date and applying that rate to actual debit card volume in the period. This
estimate of future disputes is then adjusted for our estimate of the amount
disputed that we expect to result in a loss, which is estimated based on our
historical experience. Our estimation process is subject to risks and
uncertainties, including that future performance may be different from our
historical experience. Accordingly, our actual loss experience may not match
expectations.

Fraud or theft-based related losses are recognized when realized or incurred.
Drivers include, but are not limited to efforts by organized or unorganized
fraudsters to target an account, customer complicity, customer lack of proper
password safeguarding or other preventative measures, onboarding approval
procedures, changes in account funds availability, in person vs. online
transactions, macroeconomic conditions, changes in customer behavior, and
regulatory changes.

Income Taxes

BMTX accounts for income taxes under the liability method of accounting for
income taxes. The income tax accounting guidance results in two components of
income tax expense: current and deferred. Current income tax expense reflects
taxes to be paid or refunded for the current period by applying the provisions
of the enacted tax law to the taxable income or excess of deductions over
revenues. BMTX determines deferred income taxes using the liability (or balance
sheet) method. Under this method, the net deferred tax asset or liability is
based on the tax effects of the differences between the book and tax bases of
assets and liabilities, and enacted changes in tax rates and laws are recognized
in the period in which they occur.


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A tax position is recognized if it is more likely than not, based on the
technical merits, that the tax position will be realized or sustained upon
examination. The term more likely than not means a likelihood of more than 50
percent; the term upon examination includes resolution of the related appeals or
litigation process. A tax position that meets the more-likely-than-not
recognition threshold is measured as the largest amount of tax benefit that has
a greater than 50 percent likelihood of being realized upon settlement with a
taxing authority that has full knowledge of all relevant information. The
determination of whether or not a tax position has met the more-likely-than-not
recognition threshold considers the facts, circumstances and information
available at the reporting date and is subject to management's judgment.

In assessing the realizability of federal or state deferred tax assets,
management considers whether it is more likely than not that some portion or all
of the deferred tax assets will not be realized. The ultimate realization of
deferred tax assets is dependent upon the generation of future taxable income
during periods in which those temporary differences become deductible.
Management considers the scheduled reversal of deferred tax liabilities,
projected future taxable income and prudent, feasible and permissible as well as
available tax planning strategies in making this assessment.

Goodwill and Other Intangibles

Goodwill represents the excess of the purchase price over the identifiable net
assets of businesses acquired through business combinations accounted for under
the acquisition method. Other intangible assets represent purchased assets that
lack physical substance but can be distinguished from goodwill because of
contractual or other legal rights. Intangible assets that have finite lives,
such as university relationships, are subject to impairment testing. Intangible
assets are amortized on a straight-line basis over twenty years.

Goodwill is reviewed for impairment annually as of October 31 and between annual
tests when events and circumstances indicate that impairment may have occurred.
The goodwill impairment charge represents the amount by which the reporting
unit's carrying amount exceeds its fair value; however, the loss recognized
should not exceed the total amount of goodwill allocated to that reporting unit.
BMTX applies a qualitative assessment to determine if the one-step quantitative
impairment test is necessary.

Other intangibles subject to amortization are reviewed for impairment under FASB
ASC 360, Property, Plant and Equipment, which requires that a long-lived asset
or asset group be tested for recoverability whenever events or changes in
circumstances indicate that the carrying value may not be recoverable. The
carrying value of a long-lived asset is not recoverable if it exceeds the sum of
the undiscounted cash flows expected to result from the use and eventual
disposition of the asset.

As part of its qualitative assessment, BMTX reviews regional and national trends
in current and expected economic conditions, examining indicators such as GDP
growth, interest rates and unemployment rates. BMTX also considers its own
historical performance (through BankMobile), expectations of future performance,
indicative deal values, and other trends specific to its industry.

Developed Software

Developed software includes internally developed software and developed software
acquired in the Higher One Disbursement business acquisition. Internally
developed software and related capitalized work-in-process costs relate to the
development of digital banking platforms to connect BaaS banking customers to
partner banks.

BMTX capitalizes certain internal and external costs incurred to develop
internal-use software during the application development stage. BMTX also
capitalizes the cost of specified upgrades and enhancements to internal-use
software that result in additional functionality. Once a development project is
substantially complete and the software is ready for its intended use, BMTX
begins amortizing these costs on a straight-line basis over the internal-use
software's estimated useful life, which range from three to seven years.

The Higher One Disbursement business developed software is related to the
Disbursement business services to colleges and universities and delivering
services to students. The Higher One Disbursement business developed software
was recorded at the amount determined by a third-party valuation expert and was
estimated based on expected revenue attributable to the software utilizing a
discounted cash flow methodology, giving consideration to potential
obsolescence. The estimated useful life of the Higher One Disbursement business
developed software is 10 years.


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The Company reviews the carrying value of developed software for impairment by
measuring the carrying amount of the asset against the estimated undiscounted
future cash flows associated with it. If the Company determines that the
carrying amount is impaired, the asset is written down to fair value. Fair value
is determined based on discounted cash flows or management's estimates,
depending on the nature of the assets.

Public & Private Warrants

The Company has Public and Private Warrants outstanding as a result of the
merger transaction which occurred on January 4, 2021. Each whole warrant
entitles the registered holder to purchase one whole share of common stock at a
price of $11.50 a share. The warrants expire January 4, 2026, or earlier upon
redemption or liquidation and the Company has redemption rights if our common
stock trades above $24.00 for 20 out of 30 days. The Private Warrants are
identical to the Public Warrants except that the Private Warrants are
non-redeemable and exercisable on a cashless basis so long as they are held by
the sponsor and certain others.

The Private Warrants and the Public Warrants are treated differently for
accounting purposes. In accordance with FASB ASC Topic 480, Distinguishing
Liabilities from Equity, the Private Warrants are accounted for as liabilities
and will be marked-to-market each reporting period with the change recognized in
earnings. In general, under the mark-to-market accounting model, as the
Company's stock price increases, the warrant liability increases, and the
Company recognizes additional expense in its Consolidated Statements of Income
(Loss) - the opposite when the stock price declines. Accordingly, the periodic
revaluation of the Private Warrants could result in significant volatility in
our reported earnings. The amounts recognized are a mark-to-market accounting
determination and are non-cash.

In accordance with FASB ASC Topic 480, Distinguishing Liabilities from Equity,
for accounting purposes the Public Warrants are treated as equity instruments.
Accordingly, the Public Warrants are not marked-to-market each reporting period,
thus there is no impact to earnings. Any future exercises of the Public Warrants
will be recorded as cash received and recorded in Cash and cash equivalents,
with a corresponding offset to Additional paid-in capital in equity.

NEW ACCOUNTING PRONOUNCEMENTS

The FASB has issued accounting standards that have not yet become effective and
that may impact BMTX's consolidated financial statements or its disclosures in
future periods. Note 2 - Basis of Presentation and Significant Accounting
Policies provides information regarding those accounting standards.

RESULTS OF OPERATIONS

The following discussion of our results of operations should be read in
conjunction with our Consolidated Financial Statements, including the
accompanying notes. The following summarized tables set forth our operating
results for the twelve months ended December 31, 2021 and December 31, 2020:

                                                           Twelve Months Ended
                                                              December 31,
                                                      2021                  

2020

(dollars in thousands, except per share                                                                                %
data)                                                                   (As Restated)           Change              Change
Operating revenues                                $   94,987          $       66,437          $ 28,550                    43  %
Operating expenses                                    89,321                  77,233            12,088                    16  %
Income (loss) from operations                          5,666                 (10,796)           16,462                       NM
Gain on fair value of private warrant
liability                                             17,225                       -            17,225                   100  %
Interest expense                                         (96)                 (1,395)            1,299                   (93) %
Income (loss) before income tax expense               22,795                 (12,191)           34,986                       NM
Income tax expense                                     5,752                      23             5,729                       NM
Net income (loss)                                 $   17,043          $      (12,214)         $ 29,257                       NM

Net Income (loss) per share - basic               $     1.44          $        (1.99)         $   3.43                       NM
Net Income (loss) per share - diluted             $     1.43          $        (1.99)         $   3.42                       NM

NM refers to changes greater than 150%.

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For the twelve months ended December 31, 2021, we had substantially higher
operating profitability as compared to the twelve months ended December 31,
2020. The increase was almost entirely due to additional revenues which
increased 43% as compared to the prior year as compared to operating expenses
which increased by only 16% resulting in improved operating profitability. The
increase in revenue is primarily driven by an increase in Servicing fees from
Partner Bank which increased $22.6 million as compared to the prior period. In
addition to increased income from operations, we experienced a year to date gain
on the fair value of the private warrant liability and decreased interest
expense. The resulting increased profitability for the period drove an increase
in income tax expense for the period. The increased profitability as compared to
the prior period was reflected in our Basic and Diluted Earnings Per Share
amounts which increased to $1.44 and $1.43 for the twelve months ended
December 31, 2021, respectively as compared to $(1.99) for both Basic and
Diluted Earnings Per Share for the twelve months ended December 31, 2020. The
reasons for these movements in revenue and expenses are discussed in further
detail below.

Operating Revenues

                                             Twelve Months Ended
                                                December 31,
                                          2021               2020                           %
(dollars in thousands)                                  (As Restated)        Change       Change
Revenues:
Interchange and card revenue          $    28,078      $       25,864      $  2,214          9  %
Servicing fees from Partner Bank           45,105              22,465        22,640        101  %
Account fees                               10,668              11,308          (640)        (6) %
University fees                             5,693               5,320           373          7  %
Other revenue                               5,443               1,480         3,963            NM
   Total operating revenues           $    94,987      $       66,437      $ 28,550         43  %

NM refers to changes greater than 150%.

For the twelve months ended December 31, 2021, total revenues increased $28.6
million, or 43% as compared to the twelve months ended December 31, 2020. This
increase is primarily attributable to a $22.6 million increase in Servicing fees
from our Partner Bank, driven by an increase in average serviced deposits period
over period from $0.8 billion to $1.6 billion. The Company expects continued
growth in average serviced deposits in the future. In addition, we had a $4.0
million increase in Other revenue, due to higher banking-as-a-service project
revenues, and a $2.2 million increase in Interchange and card revenue due to an
increase in total spend as compared to the prior period. These increases in
revenue were partially offset by a decrease in Account fees of $0.6 million. The
decrease in Account fees of $0.6 million is primarily driven by reduced fees in
our Higher Education business.

Operating Expenses

                                                    Twelve Months Ended
                                                       December 31,                             %
(dollars in thousands)                              2021            2020         Change       Change
Technology, communication, and processing       $    28,973      $ 27,404      $  1,569          6  %
Salaries and employee benefits                       38,036        26,076        11,960         46  %
Professional services                                10,395         9,304         1,091         12  %
Provision for operating losses                        5,419         5,170           249          5  %
Occupancy                                             1,197         1,428          (231)       (16) %
Customer related supplies                             2,214         3,236        (1,022)       (32) %
Advertising and promotion                               654           941          (287)       (30) %
Merger and acquisition related expenses                  65           739          (674)       (91) %
Other expense                                         2,368         2,935          (567)       (19) %
  Total operating expenses                      $    89,321      $ 77,233      $ 12,088         16  %




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For the twelve months ended December 31, 2021, operating expenses increased
$12.1 million, or 16% as compared to the twelve months ended December 31, 2020.
This increase is primarily attributable to a $12.0 million increase in Salaries
and employee benefits, a $1.6 million increase in Technology, communication, and
processing, and a $1.1 million increase in Professional services. The increase
in Salaries and employee benefits included $9.5 million for the January 4th,
2021 share-based compensation award and $0.8 million for the accelerated vesting
of restricted stock units and stock options previously granted by our former
parent to certain of the Company's employees in connection with the divestiture
of the Company, and $1.0 million for executive restricted share units granted
during 2021. The increase in Technology, communication, and processing expense
year-over-year reflects an increase in stand-alone technology and cloud
computing costs, as well as lower partner reimbursements of certain technology
costs in 2021. These increases were partially offset by a $1.0 million decrease
in Customer related supplies, a $0.7 million decrease in Merger and acquisition
related expenses, and a $0.6 million decrease in Other expense.

Income Tax Expense

The Company's effective tax rate was 25.2% for the twelve months ended
December 31, 2021. The effective tax rate differs from the Company's federal
statutory rate of 21.0% due to the non-taxable fair value adjustments related to
the non-compensatory private warrant liability being recorded through earnings
as well as tax expense related to the estimated annual increase of the valuation
allowance established against deferred tax assets.

LIQUIDITY AND CAPITAL RESOURCES

We currently finance our operations through cash flows provided by operating
activities. We had a substantial increase in cash from operating activities in
the twelve months ended December 31, 2021 compared to the twelve months ended
December 31, 2020. We had $25.7 million of Cash and cash equivalents as of
December 31, 2021.
We intend to fund our ongoing operating activities with our existing cash and
expected cash flows from operations; we believe these sources of liquidity will
be adequate for at least the next twelve months. However, should additional
liquidity be necessary, the Company could consider equity or debt financing, but
there are no assurances that additional capital would be available or on terms
that are acceptable to us.

The table below summarizes our cash flows for the periods indicated:

                                                           Twelve Months Ended
                                                               December 31,
                                                       2021                  2020                                       %
(dollars in thousands)                                                   (As Restated)           Change              Change

Net cash provided by operating activities $ 27,543 $

    16,038          $ 11,505                    72  %
Net cash used in investing activities                    (733)                 (4,020)            3,287                   (82) %
Net cash used in financing activities                  (4,095)                (17,615)           13,520                   (77) %
Net increase (decrease) in cash and cash
equivalents                                       $    22,715          $       (5,597)         $ 28,312                       NM

NM refers to changes greater than 150%.

Cash Flows Provided by Operating Activities
Cash provided by operating activities was $27.5 million in the twelve months
ended December 31, 2021 compared to cash provided of $16.0 million in the twelve
months ended December 31, 2020, an increase of $11.5 million. The increase was
driven primarily by the increase in Income (loss) from operations for the twelve
months ended December 31, 2021 as compared to the prior year.

Cash Flows Used in Investing Activities
Cash used in investing activities decreased $3.3 million in the twelve months
ended December 31, 2021 as compared to the twelve months ended December 31,
2020, primarily due to reduced capitalization of development costs related to
internal use software as compared to the prior year.

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Cash Flows Used in Financing Activities
Cash used in financing activities decreased $13.5 million as compared to the
prior year. The $4.1 million used in financing activities for the twelve months
ended December 31, 2021 reflects the repayment of $21.0 million of debt
substantially offset by $16.9 million of net cash proceeds from the
recapitalization transaction. For the twelve months ended December 31, 2020,
$19.0 million was recorded for repayments on borrowings that were partially
offset by $1.4 million in capital contributions from the Company's Partner Bank.

CONTRACTUAL OBLIGATIONS

During the twelve months ended December 31, 2021, BMTX repaid its debt
outstanding. Note 7 - Borrowings from Partner Bank in the Notes to the
Consolidated Financial Statements herein provides additional information. There
were no other material changes in our contractual obligations during the twelve
months ended December 31, 2021.

A summary of the Company's outstanding contractual obligations as of
December 31, 2021 is as follows:

                                            Payments Due by Period
                                      Within              1 to 3      More than      Total Amounts
(dollars in thousands)                1 year              years        3 years         Committed
Operating leases              $      418                 $    -      $       -      $          418
                              $      418                 $    -      $       -      $          418

Off-Balance Sheet Arrangements

As of December 31, 2021, we did not have any off-balance sheet arrangements.