MONEYLION INC. Management’s Discussion and Analysis of Financial Condition and Results of Operations (Form 10-Q)

The following Management's Discussion and Analysis of Financial Condition and
Results of Operations summarizes the significant factors affecting the
consolidated operating results, financial condition, liquidity and capital
resources of MoneyLion and is intended to help the reader understand MoneyLion,
our operations and our present business environment. This discussion should be
read in conjunction with MoneyLion's unaudited consolidated financial statements
and notes to those financial statements included in Part I, Item 1 "Financial
Statements" within this Quarterly Report on Form 10-Q. References to "we," "us,"
"our," "Company" or "MoneyLion" refer to MoneyLion Technologies Inc. and, as
context requires, its wholly-owned subsidiaries for the periods prior to the
Business Combination Closing Date and to MoneyLion Inc. and, as context
requires, its wholly-owned subsidiaries for the period thereafter. "Fusion"
refers to Fusion Acquisition Corp. for the periods prior to the Business
Combination Closing Date.

Reclassification-The acquisitions of MALKA and Even Financial and related
ongoing integration activities have caused significant changes to the revenue
and cost structure of the Company such that the organization of financial
statement line items in both the consolidated balance sheets and the
consolidated statements of operations used in prior reporting periods were no
longer sufficient to properly present the Company's financial condition and
results of operations as of March 31, 2022. Reclassifications have been
performed relative to the previous presentation of the consolidated balance
sheet as of December 31, 2021 and the consolidated statement of operations for
the three and nine months ended September 30, 2021 to present in a new format
that better represents the new revenue and cost structure of the Company. The
reclassifications had no impact on previously reported total assets, total
liabilities or net income (loss) and an immaterial impact on total revenue, net.
There was no impact on the consolidated statements of cash flows or consolidated
statements of redeemable convertible preferred stock, redeemable noncontrolling
interests and stockholders' equity (deficit). There are also related
reclassifications and expanded disclosure, where necessary, contained within the
notes to the consolidated financial statements.

Insight

MoneyLion is the go-to destination for personalized financial content, products
and advice. We provide consumers a full suite of financial and non-financial
solutions, bundling proprietary, low-cost financial products with products that
are offered through our marketplace and network affiliate partners. We engage
and educate our customers with daily, money-related and money-adjacent content,
delivered through a personalized feed, to empower our customers at all times.
When our customers enjoy periods of financial excess, we provide tools for them
to easily manage their spending and saving goals through our digital banking and
automated investing solutions. When our customers experience moments of
financial need, we provide them immediate access to innovative lending or earned
income advance products and credit improvement programs that can bridge these
times of financial stress and improve their financial health. We also leverage
our distinct data, technology and network advantages to deliver leading embedded
finance marketplace solutions for our Enterprise Partners, allowing them to
better connect with existing end-users and reach new potential end-users,
complemented by advertising services and digital media and content production
services custom designed to promote Enterprise Partners' products and services.
We believe that the combination of solutions that MoneyLion provides uniquely
positions us to disrupt how financial products are consumed, unlocking a total
addressable market that we estimate to be over $274 billion.


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The Company’s primary consumer product offerings include:

RoarMoney Premium Mobile Banking - RoarMoney is our Federal Deposit Insurance
Corporation-insured digital demand deposit account with zero minimums, premium
features and rewards. Our RoarMoney demand deposit accounts are currently issued
by Pathward, N.A. ("Pathward") (f/k/a MetaBank, N.A.), a South Dakota-based,
nationally chartered bank owned by Pathward Financial, Inc. (NASDAQ: CASH)
(f/k/a M. Customers can open a RoarMoney account in minutes through the
MoneyLion mobile application, add funds to their account and begin spending
using a RoarMoney virtual debit card. RoarMoney accounts also include a physical
MoneyLion Debit Mastercard that can be used at any of the approximately 55,000
Allpoint ATM network locations to make no-fee withdrawals. We earn revenue from
interchange fees from payment networks based on customer expenditures on the
debit card, as well as transaction volume-based incentive payments from the
payment network. We also earn revenue from cardholder fees such as a small
monthly administrative fee charged to our customers, a fee charged to customers
when an out-of-network ATM is utilized to withdraw cash, a foreign transaction
fee charged to our customers on purchases outside of the U.S. or in a currency
other than U.S. dollars and instant transfer fees. Both interchange fees,
payment network payments and cardholder fees are reflected in service and
subscription fees. We incur direct costs in connection with the RoarMoney
account offering, which include fees paid to the payment networks and our
partner bank.

Personalized Investing - MoneyLion Investing is an online investment account
that offers access to separately managed accounts invested based on model
portfolios comprised of ETFs and managed on a discretionary basis. Advisory
services related to the MoneyLion investment account are provided by ML Wealth
LLC ("ML Wealth"), an SEC-registered investment adviser and an indirect
wholly-owned subsidiary of MoneyLion. Brokerage and custodial services are
provided by DriveWealth LLC, a third-party provider. This fully-managed account
model allows customers to set their investment strategy and let ML Wealth manage
investment decisions to implement that strategy on a discretionary basis. An
investment account holder simply identifies their investing comfort zone to
receive a personalized portfolio, a mix of stock and bond ETFs. Our managed
investment account is available on a standalone basis. Through MoneyLion
Investing, customers are able to develop sound investing habits by enabling
certain account features, including auto-investing and round ups. Auto-investing
allows our customers to automatically contribute into their investment account
with recurring deposits directly into the account. With round ups, customers can
also choose to automatically round up purchases made either on their RoarMoney
account or an external bank account to the nearest dollar. The accrued round ups
can then be transferred into the customer's MoneyLion Investing account and
invested in accordance with the customer's chosen investment strategy. We earn
revenue from a small monthly administration fee from our customers who use this
product, which is reflected in service and subscription fees.

Crypto - MoneyLion Crypto is an online cryptocurrency account that enables
customers to buy, sell and hold cryptocurrency. The account is provided by Zero
Hash LLC and its affiliate, Zero Hash Liquidity Services LLC (collectively,
"Zero Hash"). The Zero Hash entities are registered as money services businesses
with FinCEN and hold active money transmitter licenses (or the state equivalent
of such licenses) in all U.S. states and the District of Columbia except for (i)
California, Indiana and Wisconsin, where Zero Hash relies upon licensing
exemptions; (ii) Montana, which does not currently have a money transmitter
licensing requirement; and (iii) Hawaii. The Zero Hash entities currently engage
in crypto asset activities in all U.S. states and the District of Columbia
except for Hawaii. RoarMoney accountholders can open a MoneyLion Crypto account
through the MoneyLion mobile application and fund it via their RoarMoney
account. In addition, customers can also choose to automatically round up
purchases made either on their RoarMoney account or an external bank account to
the nearest dollar. The accrued round ups can then be transferred into the
customer's MoneyLion Crypto account and invested in Bitcoin. As of December 31,
2021, the only cryptocurrencies available through the MoneyLion Crypto account
were Bitcoin and Ether. In January 2022, MoneyLion Crypto expanded to include
Bitcoin Cash and Litecoin. Both MoneyLion and Zero Hash must consent in writing
before adding any additional digital assets to the program. We earn revenue from
Zero Hash as they pay us a share of the fees that they earn from our customers
in exchange for MoneyLion enabling Zero Hash to effect digital currency-related
transactions for our customers. This revenue is reflected in service and
subscription fees.


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Instacash - Instacash is our 0% APR advance product that gives customers early
access to their recurring income deposits. Customers can access Instacash
advances at any time during a regular deposit period up to their advance limit,
providing customers with the flexibility to cover temporary cash needs and avoid
costly overdraft fees. There are no fees associated with regular delivery of
funds to either a RoarMoney account (typically delivered within 12-48 hours) or
an external checking account (typically delivered within two to five business
days). However, customers have the option to pay an additional fee in order to
receive their funds on an expedited basis (typically within minutes or less),
the amount of which is based on the amount of the disbursement and whether the
funds are delivered to a RoarMoney account or an external checking account.
Customers may also choose to leave MoneyLion an optional tip for use of the
Instacash service. We earn revenue from tips and instant transfer fees, both
reflected in service and subscription fees.

Credit Builder Plus - Our Credit Builder Plus membership program offers a proven
path for our customers to access credit and establish or rebuild history, build
savings, establish financial literacy and track their financial health. For a
monthly cost of $19.99, customers receive a suite of services including banking
and investment accounts, credit tracking and financial literacy content, rewards
programs and access to loans of up to $1,000 at competitive rates offered by
MoneyLion lending subsidiaries, allowing our customers to establish up to twelve
months of payment history with all three credit bureaus. We offer our Credit
Builder Plus members access to the Lion's Share Loyalty Program, where members
can earn rewards of up to $19.99 per month. We earn revenue from monthly
subscription fees paid by our customers. These fees are reflected in service and
subscription fees. As part of the Credit Builder Plus membership program,
members may apply for a Credit Builder Plus secured personal loan. In addition
to a free standard disbursement option, we also offered our customers an option
to disburse their funds to their MoneyLion-serviced RoarMoney bank account or
external bank account on an expedited basis for an instant transfer fee. This
instant disbursement option for Credit Builder Plus loans was removed in the
second quarter of 2021. We earn revenue from interest income, reflected in net
interest income on finance receivables, and, prior to the removal of the instant
disbursement option, instant transfer fees, reflected in service and
subscription fees.

Financial Tracking - We offer our customers access to financial tracking tools
such as Financial Heartbeat, GamePlan and credit score tracking. Financial
Heartbeat is an intelligent, automated tool that guides customers on their
financial journey. Financial Heartbeat evaluates customers' financial situation
across four key dimensions: SAVE (savings and financial preparedness), SPEND
(spending and personal budget), SHIELD (insurance needs and coverage) and SCORE
(credit tracking and health). Through our easy-to-use interface, customers can
review the key issues impacting their financial situation, decide what actions
to take, evaluate which products to use and receive guidance on how to stay
motivated on their journey towards financial wellness. GamePlan provides our
customers with a personalized action plan, including a checklist with tasks,
meant to help them reach their financial goals across different categories such
as spending, saving and more. Financial tracking tools are offered to our
customers at no cost and we do not earn revenue from these services.

MoneyLife - Consistent with our vision of establishing MoneyLion as a lifestyle
brand, in 2021 we introduced MoneyLife, an online financial education content
destination which is delivered to customers in the MoneyLion mobile application
via a content feed. MoneyLife is an influencer-focused, video content-driven
educational platform where customers can share and discover ideas, advice and
insights regarding their financial lives. MoneyLife includes highly personalized
content driven by financial advice and education influencers, tools to achieve
financial goals and additional ways of earning rewards to shop and save. Our
acquisition of MALKA, a creator network and content platform, accelerated our
ability to engage with consumers across all digital and emerging channels,
allowing us to directly connect with communities natively inside and outside of
our platform. Through MoneyLife and the content feed, we provide an additional
daily destination site for current customers, drive additional prospective
customers to MoneyLion and increase customer engagement and cross-sell
opportunities for both MoneyLion and its affiliate partners.


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The company’s primary business service offerings include:

Affiliate Marketing Program - We work with various affiliate partners that offer
products or services that we may recommend to our customers via display ads,
offers or campaigns through our digital platforms. Our customers can access
these offers on a standalone basis. We earn revenue from fees from our affiliate
partners based on a range of criteria depending on each affiliate relationship
including, but not limited to, customers' clicks, impressions, completed
transactions or a share of revenue generated for the affiliate partner. This
revenue is reflected in enterprise service revenues.

Even Financial Marketplace - Through Even Financial's software platform, we
connect and match consumers with real-time personalized financial product
recommendations from banks, insurance and fintech companies on mobile apps and
websites by enabling the display of offers for financial products to consumers.
Our infrastructure leverages machine learning and advanced data science to solve
a significant pain point in financial services customer acquisition, bridging
Product Partners and Channel Partners via Even Financial's API and embedded
finance marketplaces. Even Financial's network includes over 400 Product
Partners and 550 Channel Partners, covering a breadth of financial services
including loans, credit cards, mortgages, savings, and insurance products. We
earn revenue, which is reflected in enterprise service revenue, from our Product
Partners based on performance structure. We incur direct costs related to the
fees paid to our Channel Partners.

Digital Media and Content Production - Through MALKA, we offer digital media and
content production services provided to enterprise clients in entertainment,
sports, gaming, live streaming and other sectors. We produce content across
every digital medium, from creative advertising campaigns and original branded
content to e-gaming livestreams, podcast series, feature length documentaries,
sports representation and marketing. We earn revenue, which is reflected in
enterprise service revenue, from our enterprise clients based on performance
obligations within our contracts with them.

RECENT DEVELOPMENTS

Recent events that have had an impact on our activities are as follows:

COVID-19 - The COVID-19 pandemic has caused substantial changes in consumer
behavior, restrictions on business and individual activities and high
unemployment rates, which led to reduced economic activity and may continue to
cause economic volatility. There continue to be significant uncertainties
associated with the COVID-19 pandemic, including with respect to the ultimate
course, duration and severity of the virus and additional variants, future
actions that may be taken by governmental authorities and private businesses to
contain the COVID-19 pandemic or to mitigate its impact and the effectiveness of
such actions, the timing and speed of economic recovery and the ultimate
effectiveness of vaccinations for COVID-19.

In response to the economic uncertainty caused by the pandemic, during 2021, we
made certain operational changes and implemented certain consumer support
programs which were immaterial to our performance. For example, we reduced our
marketing activities such as advertising through digital platforms, which have
since returned to pre-pandemic levels, and also reduced our sponsorship
arrangements with third parties. In addition, we implemented underwriting policy
changes on a targeted basis to more closely manage credit risk while we further
evaluated market conditions. Our underwriting models are dynamic relative to
real time changes in our customer's income and credit profiles and our credit
performance remained steady as our underwriting models quickly adapted to these
changes. To further support our customers, we expanded our payment deferral
options and reduced certain fees, while providing them with relevant content and
resources on topics like unemployment insurance and stimulus checks. For
instance, for our secured personal loan customers with no prior missed payments,
we offered payment deferrals based on a customer's payment frequency, ranging
from one payment deferral for monthly payments and up to three payment deferrals
for weekly payments. For our Instacash customers with an outstanding advance, we
allowed them to change the scheduled repayment date by up to 14 days. Once the
advance was repaid, the customer could request another change to the scheduled
repayment on another advance. While there is no limit to the number of changes a
customer may be granted, they are limited to one at a time and per advance.
Despite the economic uncertainty as a result of COVID-19, we have increased the
number of customers on our platform.


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Management will continue to monitor the nature and extent of the potential impact on the business as the pandemic continues.

Business combinations – Since January 1, 2021we carried out the following business combinations:

Merger with Fusion - On September 22, 2021, Legacy MoneyLion completed the
Business Combination with Fusion and became a publicly traded company. The
Business Combination was accounted for as a reverse recapitalization in
accordance with U.S. GAAP, for which Legacy MoneyLion was determined to be the
accounting acquirer. Since the Business Combination was accounted for as a
reverse recapitalization, no goodwill or other intangible assets were recorded,
in accordance with U.S. GAAP. Under this method of accounting, Fusion was
treated as the "acquired" company for financial reporting purposes. Operations
prior to the Business Combination are those of Legacy MoneyLion. 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 for additional information.

MALKA Acquisition - On November 15, 2021, MoneyLion completed its acquisition of
MALKA (the "MALKA Acquisition"). MALKA is a creator network and content platform
that provides digital media and content production services to us and to its own
clients in entertainment, sports, gaming, live streaming and other sectors. The
MALKA Acquisition accelerated MoneyLion's ability to engage with consumers
across all digital and emerging channels, allowing MoneyLion to directly connect
with communities natively inside and outside of its existing platform. MALKA
operates as an indirect, wholly-owned subsidiary of MoneyLion Inc. with MALKA's
pre-acquisition management team leading day-to-day operations.

Related to the closing of the MALKA Acquisition, MoneyLion issued 3,206,167 in
restricted shares of MoneyLion Class A Common Stock and paid approximately $10.0
million in cash to the sellers in exchange for all of the issued and outstanding
membership interests of MALKA. The Closing Make-Whole Provision (as defined
herein) related to the restricted shares of MoneyLion Class A Common Stock
issued was valued at $10,870 as of the MALKA Acquisition Closing Date. MoneyLion
also paid down approximately $2.2 million of MALKA debt facilities. The sellers
may earn up to an additional $35 million payable in restricted shares of
MoneyLion Class A Common Stock if MALKA's revenue and EBITDA exceeds certain
targets in 2021 and 2022. The total purchase price of the MALKA Acquisition was
approximately $52.7 million.

Even Acquisition - On February 17, 2022, MoneyLion completed its acquisition of
Even Financial (the "Even Acquisition"). Even Financial utilizes its software
platform to connect and match consumers with real-time personalized financial
product recommendations from banks, insurance and fintech companies on mobile
apps and websites by enabling the display of offers for financial products to
consumers through its platform. Even Financial's infrastructure leverages
machine learning and advanced data science to solve a significant pain point in
financial services customer acquisition, seamlessly bridging Product Partners
and Channel Partners via its industry-leading API and embedded finance
marketplaces.

The Even Acquisition strengthened MoneyLion's platform by improving consumers'
abilities to find and access the right financial products to help them manage
their financial lives. Even Financial's growing network includes over 400
Product Partners and 550 Channel Partners, covering a breadth of financial
services including loans, credit cards, mortgages, savings and insurance
products. The Even Acquisition also expanded MoneyLion's addressable market,
extended the reach of MoneyLion's own products, diversified its revenue mix and
furthered MoneyLion's ambition to be the premier financial super app for
hardworking Americans.

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At the closing of the Even Acquisition, the Company (i) issued to the
equityholders of Even Financial an aggregate of 28,164,811 shares of the
Company's Series A Redeemable Convertible Preferred Stock, along with an
additional 529,120 shares of Series A Redeemable Convertible Preferred Stock to
advisors of Even Financial for transaction expenses, valued at $0.2 million,
(ii) paid to certain Even Financial management equityholders approximately $14.5
million in cash and (iii) exchanged 8,883,228 options to acquire Even Financial
common stock for 5,901,846 options to acquire MoneyLion Class A Common Stock, of
which the vested portion at the acquisition date was valued at $8.9 million. The
equityholders and advisors of Even Financial are also entitled to receive an
additional payment from the Company of up to an aggregate of 8,000,000 shares of
Series A Redeemable Convertible Preferred Stock, based on the attributed revenue
of Even Financial's business during the 13-month period commencing January 1,
2022 (the "Earnout"), and certain recipients of options to acquire shares of
MoneyLion Class A Common Stock are entitled to receive dividend equivalents in
lieu of receiving Series A Redeemable Convertible Preferred Stock, subject to
certain conditions (the "Preferred Stock Equivalents"). The combined value of
the Earnout and Preferred Stock Equivalents was $45.3 million as of the closing
of the Even Acquisition. The total purchase price was approximately $270
million, subject to customary purchase price adjustments for working capital and
inclusive of amounts used to repay approximately $5.7 million of existing
indebtedness of Even Financial and pay $2.9 million of seller transaction costs.

Factors affecting our performance

The Company is subject to a number of risks including, but not limited to, the
need for successful development of products, the need for additional capital (or
financing) to fund operating losses, competition from substitute products and
services from larger companies, protection of proprietary technology, dependence
on key individuals and risks associated with changes in information technology.

Growth in new customers and increased usage among existing customers

Our ability to effectively acquire new customers through our acquisition and
marketing efforts and drive usage of our products across our existing customers
is key to our growth. We invested in the platform approach and believe our
customers' experience is enhanced by using our full product suite as we can
better tailor the insights and recommendations. In turn, this generates higher
revenue and lifetime value from our customer base.

Product expansion and innovation

We believe in the platform approach and providing relevant products to our
customers to help them better manage their financial lives, both in times of
need and excess. We will continue to invest in enhancing our existing suite of
products and developing new products. Any factors that impair our ability to do
so may negatively impact our efforts towards retaining and attracting customers.

General economic and market conditions

Our performance is impacted by the relative strength of the overall economy,
market volatility, consumer spending behavior and consumer demand for financial
products and services. The willingness of our customers to spend, invest, or
borrow may fluctuate with their level of disposable income. Other factors such
as interest rate fluctuations or monetary policies may also impact our
customers' behavior and our own ability to fund advances and loan volume.

Competition

We compete with several larger financial institutions and technology platforms
that offer similar products and services. We compete with those that offer both
single point solutions similar to any one of our products as well as more
integrated, complete solutions. Some of our competitors may have access to more
resources than we do and thus may be able to offer better pricing or benefits to
our customers.


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Pricing of our products

We derive a substantial portion of our revenue from fees earned from our
products. The fees we earn are subject to a variety of external factors such as
competition, interchange rates and other macroeconomic factors, such as interest
rates and inflation, among others. We may provide discounts to customers who
utilize multiple products to expand usage of our platform. We may also lower
pricing on our products to acquire new customers. For example, we offer our
customers discounts such as Shake 'N' Bank cashback and other cashback rewards
opportunities as part of our RoarMoney bank account product offering and such
discounts are provided to customers based on eligible MoneyLion debit card
transactions. On average, approximately 40% of our eligible RoarMoney bank
account customers receive this benefit. We also offer our Credit Builder Plus
members access to our Lion's Share Loyalty Program where members can earn up to
$19.99 per month. The size of the Lion's Share reward depends on a customer's
number of logins into the MoneyLion app and purchases using their RoarMoney
account in that month. On average, approximately 25% of our Credit Builder Plus
members who met the minimum eligibility criteria received a Lion's Share reward.

The range of products

We offer various products and services on our platform, including a membership
program, loans, cash advances, affiliate offers and cryptocurrency, investment
and bank accounts. Each product has a different profitability profile. The
relative usage of products with high or low profitability and their lifetime
value could have an impact on our performance.

Access and cost of finance

Our credit products and other receivables were primarily financed through IIA
until the end of the fourth quarter of 2021. Beginning in the fourth quarter of
2021, we transitioned our primary source of funding for originated receivables
from IIA to special purpose vehicle financings from third-party institutional
lenders. Loss of one or more of the financing sources we have for our credit
products and other receivables could have an adverse impact on our performance,
and it could be costly to obtain new financing.

Key performance indicators

We regularly review several metrics, including the following key metrics, to
evaluate our business, measure our performance, identify trends affecting our
business, formulate financial projections and make strategic decisions.

Total number of customers

We define Total Customers as the cumulative number of customers that have opened
at least one account, including banking, membership subscription, secured
personal loan, cash advance, managed investment account, cryptocurrency account
and customers that are monetized through our marketplace and affiliate products.
Total Customers also include customers that have submitted for, received or
clicked on at least one marketplace loan offer. Previously, Total Customers
included all customers that submitted for or clicked on an offer through our
marketplace but were not necessarily monetized, which we changed beginning in
the third quarter of 2022 in order to more accurately reflect management's view
of our customers. We consider Total Customers to be a key performance metric as
it can be used to understand lifecycle efforts of our customers, as we look to
cross-sell products to our customer base and grow our platform. Total Customers
were 5.4 million and 2.7 million as of September 30, 2022 and 2021,
respectively. Total Customers for all prior periods have been recast to present
the updated definition of Total Customers.


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Total products

We define Total Products as the total number of products that our Total
Customers have opened, including banking, membership subscription, secured
personal loan, cash advance, managed investment account, cryptocurrency account
and monetized marketplace and affiliate products, as well as customers who
signed up for our financial tracking services (with either credit tracking
enabled or external linked accounts), whether or not the customer is still
registered for the product. Total Products also include marketplace loan offers
that our Total Customers have submitted for, received or clicked on through our
marketplace. If a customer has funded multiple secured personal loans or cash
advances or opened multiple products through our marketplace, it is only counted
once for each product type. Previously, Total Products included all products for
which our Total Customers submitted or clicked on an offer but were not
necessarily monetized, which we changed beginning in the third quarter of 2022
in order to more accurately reflect management's view of our products. We
consider Total Products to be a key performance metric as it can be used to
understand the usage of our products across our customer base. Total Products
were 11.3 million and 6.9 million as of September 30, 2022 and 2021,
respectively. Total Products for all prior periods have been recast to present
the updated definition of Total Products.

Business Partners

Enterprise Partners is comprised of Product Partners and Channel Partners. We
define Product Partners as financial institutions and financial service
providers. We define Channel Partners as organizations that allow us to reach a
wide base of consumers, including but not limited to news sites, content
publishers, product comparison sites and financial institutions. Enterprise
Partners were 1,024 as of September 30, 2022, comprising 441 Product Partners
and 583 Channel Partners. The number of Enterprise Partners prior to the Even
Acquisition was not significant.

Total number of origins

We define Total Originations as the dollar volume of the secured personal loans
originated and cash advances funded within the stated period. We consider Total
Originations to be a key performance metric as it can be used to measure the
usage and engagement of the customers across our secured personal lending and
Instacash products and is a significant driver of net interest income on finance
receivables and service and subscription fees. Total Originations were $446
million and $274 million for the three months ended September 30, 2022 and 2021,
respectively, and $1,292 million and $700 million for the nine months ended
September 30, 2022 and 2021, respectively. All originations were originated
directly by MoneyLion.

Adjusted income

Adjusted Revenue is defined as total revenue, net, plus amortization of loan
origination costs less provision for loss on subscription receivables, provision
for loss on fees receivables and revenue derived from phased out products. We
believe that Adjusted Revenue provides a meaningful understanding of revenue
from ongoing products and recurring revenue for comparability purposes. Adjusted
Revenue is a non-GAAP measure and should not be viewed as a substitute for total
revenue, net. Refer to the "- Non-GAAP Measures" section below for further
discussion.

Our adjusted revenues are further broken down into the following categories:

                                             Three Months Ended September 30,        Nine Months Ended September
                                                                                                 30,
                                                2022                  2021              2022             2021
                                                                      (in thousands)
Consumer                                   $        50,987       $        38,803     $  146,713       $  104,475
Enterprise                                          34,288                 3,175         89,095            6,442
Adjusted Revenue                           $        85,275       $        41,978     $  235,808       $  110,917



This breakdown of Adjusted Revenue across the categories of consumer revenue and
enterprise revenue helps provide our management with a better understanding of
Adjusted Revenue by type and may help to inform strategic pricing and resource
allocations across our products.

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Adjusted gross profit and adjusted EBITDA

Adjusted Gross Profit is defined as gross profit less revenue derived from
phased out products. Adjusted EBITDA is defined as net income (loss) plus
interest expense related to corporate debt, income tax expense (benefit),
depreciation and amortization expense, change in fair value of warrants, change
in fair value of subordinated convertible notes, change in fair value of
contingent consideration from mergers and acquisitions, stock-based compensation
and one-time expenses less origination financing cost of capital. We believe
Adjusted Gross Profit and Adjusted EBITDA provide a meaningful understanding of
an aspect of profitability based on our current product portfolio. These are
non-GAAP measures and should not be viewed as a substitute for gross profit nor
net income (loss). Refer to the "- Non-GAAP Measures" section below for further
discussion.

Results of operations for the three and nine months ended September 30, 2022 and 2021

Revenues

The following table is a reference for the discussion that follows.

                         Three Months Ended                                   Nine Months Ended September
                            September 30,                  Change                         30,                         Change
                        2022            2021           $            %            2022             2021            $             %
                                                          (In thousands, except for percentages)
Consumer revenues
Service and
subscription fees     $  52,109       $  38,748     $ 13,361         34.5 %   $  149,271       $  103,368     $  45,903          44.4 %
Net interest income
on finance
receivables               2,351           2,294           57          2.5 %        7,436            5,717         1,719          30.1 %
Total consumer
revenues                 54,460          41,042       13,418         32.7 %

156,707 109,085 47,622 43.7% Revenue from business services

                 34,288           3,175       31,113        979.9 %       89,095            6,442        82,653       1,283.0 %

Total revenue, net $88,748 $44,217 $44,531 100.7%

$245,802 $115,527 $130,275 112.8%

We generate revenue primarily from various product-related fees, providing membership subscriptions, performing business services, and issuing loans.

Total revenues increased by $44.5 million, or 100.7%, to $88.7 million for the
three months ended September 30, 2022, as compared to $44.2 million for the same
period in 2021.

Total revenues increased by $130.3 million, or 112.8%, to $245.8 million for the
nine months ended September 30, 2022, as compared to $115.5 million for the same
period in 2021.

Service and subscription fees

Service and subscription fees increased by $13.4 million, or 34.5%, to $52.1
million for the three months ended September 30, 2022, as compared to $38.7
million for the same period in 2021. The increase in service and subscription
fees were driven by increases in fee income related to instant transfer fees and
tips from Instacash of $11.1 million driven by the growth of Instacash advances
across both existing and new customers, an increase in cardholder fees from
RoarMoney accounts of $0.4 million due to an increased number of customers using
RoarMoney and new foreign transaction and instant transfer fees and an increase
of $1.9 million in revenue from a new transaction volume-based incentive payment
program from a third-party payment network, of which $1.6 million is related to
prior periods.


                                       39
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Service and subscription fees increased by $45.9 million, or 44.4%, to $149.3
million for the nine months ended September 30, 2022, as compared to $103.4
million for the same period in 2021. The increase in service and subscription
fees were driven by increases in fee income related to instant transfer fees and
tips from Instacash of $42.9 million driven by the growth of Instacash advances
across both existing and new customers, an increase in subscription fees of $2.1
million due to an increased number of customers using the Credit Builder Plus
membership program and an increase of $1.9 million in revenue from a new
transaction volume-based incentive payment program from a third-party payment
network, of which $1.2 million is related to prior periods. These increases were
partially offset by decreases in fee income related to interchange, cardholder
and administration fees from our bank and investment accounts of $1.0 million
driven by lower payment volume.

Net interest income on financial receivables

Net interest income on finance receivables is generated by interest earned on
Credit Builder Plus loans, which is partially offset by the amortization of loan
origination costs.

Net interest income on finance receivables increased by $0.1 million, or 2.5%,
to $2.4 million for the three months ended September 30, 2022, as compared to
$2.3 million for the same period in 2021. The increase in net interest income on
finance receivables was driven by the historical origination growth on our
Credit Builder Plus loan program across both existing and new customers. The
amortization of loan origination costs decreased by $0.1 million to $0.3 million
for the three months ended September 30, 2022, as compared to $0.5 million for
the same period in 2021.

Net interest income on finance receivables increased by $1.7 million, or 30.1%,
to $7.4 million for the nine months ended September 30, 2022, as compared to
$5.7 million for the same period in 2021. The increase in net interest income on
finance receivables was driven by the historical origination growth on our
Credit Builder Plus loan program across both existing and new customers. The
amortization of loan origination costs decreased by $0.2 million to $0.8 million
for the nine months ended September 30, 2022, as compared to $1.0 million for
the same period in 2021.

Enterprise service revenues

Enterprise service revenues increased by $31.1 million, or 979.9%, to $34.3
million for the three months ended September 30, 2022, as compared to $3.2
million for the same period in 2021. This increase was primarily attributable to
the acquisitions of Even Financial and MALKA, which significantly expanded the
Company's enterprise service offerings.

Enterprise service revenues increased by $82.7 million, or 1,283.0%, to $89.1
million for the nine months ended September 30, 2022, as compared to $6.4
million for the same period in 2021. This increase was primarily attributable to
the acquisitions of Even Financial and MALKA, which significantly expanded the
Company's enterprise service offerings.



                                       40
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Functionnary costs

The following table is a reference for the following discussion:

                              Three Months Ended                                   Nine Months Ended September
                                September 30,                   Change                         30,                         Change
                             2022            2021           $            %            2022             2021            $            %
                                                              (In thousands, except for percentages)
Operating expenses
Provision for credit
losses on consumer
receivables                   27,428          15,238       12,190         80.0 %       77,453           36,644        40,809        111.4 %
Compensation and
benefits                      25,619          15,471       10,148         65.6 %       74,160           30,700        43,460        141.6 %
Marketing                      6,954          13,531       (6,577 )      -48.6 %       27,847           27,060           787          2.9 %
Direct costs                  28,837          10,885       17,952        164.9 %       79,427           31,331        48,096        153.5 %
Professional services          7,546           4,678        2,868         61.3 %       21,486           12,715         8,771         69.0 %
Technology-related
costs                          5,327           1,498        3,829        255.6 %       15,241            5,954         9,287        156.0 %
Other operating
expenses                      11,209           8,261        2,948         35.7 %       31,820           10,618        21,202        199.7 %
Total operating
expenses                     112,920          69,562       43,358         62.3 %      327,434          155,022       172,412        111.2 %

Other (expense) income
Interest expense              (7,880 )        (1,627 )     (6,253 )      384.3 %      (21,638 )         (4,947 )     (16,691 )      337.4 %
Change in fair value of
warrant liability                414          (5,495 )      5,909           nm          7,275          (54,285 )      61,560           nm
Change in fair value of
subordinated
convertible notes                  -           7,684       (7,684 )         nm              -          (41,877 )      41,877           nm
Change in fair value of
contingent
consideration from
mergers and
acquisitions                  10,214               -       10,214           nm         14,034                -        14,034           nm
Other income (expense)           460             137          323        235.8 %         (447 )          3,405        (3,852 )         nm
Total other (expense)
income                         3,208             699        2,509        358.9 %         (776 )        (97,704 )      96,928        -99.2 %

Income tax expense
(benefit)                         53              (1 )         54           nm        (28,348 )             41       (28,389 )         nm


Our operating expenses consist of the following items:

Allowance for credit losses on consumer receivables

Provision for credit losses on consumer receivables consists of amounts charged
during the period to maintain an allowance for credit and advance losses. The
allowance represents management's estimate of the credit losses in our consumer
receivable portfolio and is based on management's assessment of many factors,
including changes in the nature, volume and risk characteristics of the consumer
receivables portfolio, including trends in delinquency and charge-offs and
current economic conditions that may affect the customer's ability to pay.

Provision for credit losses on consumer receivables increased by $12.2 million,
or 80.0%, to $27.4 million for the three months ended September 30, 2022, as
compared to $15.2 million for the same period in 2021. This increase resulted
primarily from an increase to provision related to Instacash advance receivables
of $11.3 million and Instacash instant transfer fees and tips of $0.9 million,
evidenced by the increase in Total Originations from approximately $274 million
for the three months ended September 30, 2021 compared to approximately $446
million for the same period in 2022, and partially offset by a decrease to
provision related to Credit Builder Plus loan receivables of $0.5 million.
Provision related to subscription fees increased by $0.2 million. Related to the
ML Plus loans, a legacy product we transitioned from in the second quarter of
2020, the provision decreased by $0.3 million.

                                       41
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Provision for credit losses on consumer receivables increased by $40.8 million,
or 111.4%, to $77.5 million for the nine months ended September 30, 2022, as
compared to $36.6 million for the same period in 2021. This increase resulted
primarily from an increase to provision related to Instacash advance receivables
of $32.7 million, Instacash instant transfer fees and tips of $3.2 million and
Credit Builder Plus loan receivables of $2.1 million, evidenced by the increase
in Total Originations from approximately $700 million for the nine months ended
September 30, 2021 compared to approximately $1,292 million for the same period
in 2022. Provision related to subscription fees increased by $1.8 million.
Related to the ML Plus loans, a legacy product we transitioned from in the
second quarter of 2020, the provision decreased by $0.9 million.

Benefits and Compensation

Compensation and benefits increased by $10.1 million, or 65.6%, to $25.6 million
for the three months ended September 30, 2022, as compared to $15.5 million for
the same period in 2021. This increase was driven primarily by $9.8 million of
additional compensation and benefits expenses related to Even Financial and
MALKA, a $1.9 million increase related to increased headcount, an increase in
stock-based compensation of $4.5 million and $0.2 million related to severance
costs incurred in the third quarter of 2022. This increase was partially offset
by the $6.3 million non-recurring, discretionary bonus incentive expense related
to the Business Combination that occurred in the third quarter of 2021.

Compensation and benefits increased by $43.5 million, or 141.6%, to $74.2
million for the nine months ended September 30, 2022, as compared to $30.7
million for the same period in 2021. This increase was driven primarily by $26.6
million of additional compensation and benefits expenses related to Even
Financial and MALKA, a $3.8 million increase related to increased headcount, an
increase in stock-based compensation of $11.2 million, a $1.1 million increase
related to the amortization of salaries related to origination expenses incurred
in 2021 and $0.8 million related to severance costs incurred in 2022.

Marketing

Marketing decreased by $6.6 million, or 48.6%, to $7.0 million for the three
months ended September 30, 2022, as compared to $13.5 million for the same
period in 2021. This decrease resulted primarily from a $6.7 million decrease in
costs related to advertising through digital platforms, partially offset by a
$0.1 million increase in general marketing-related activities.

Marketing increased by $0.8 millioni.e. 2.9%, at $27.8 million for the nine months ended September 30, 2022compared to $27.1 million for the same period in 2021. This increase is mainly due to an increase in costs related to the general marketing activities of $8.7 millionpartially offset by a $7.9 million reduction in advertising costs via digital platforms.

Direct costs

Direct costs increased by $18.0 million, or 164.9%, to $28.8 million for the
three months ended September 30, 2022, as compared to $10.9 million for the same
period in 2021. The increase was primarily driven by $18.8 million of direct
costs related to Even Financial and MALKA, an increase in payment processing
fees of $0.3 million and underwriting expenses of $0.1 million, driven by growth
in Total Originations and Total Customers, partially offset by a $1.4 million
decrease in costs related to our bank account offering.

Direct costs increased by $48.1 million, or 153.5%, to $79.4 million for the
nine months ended September 30, 2022, as compared to $31.3 million for the same
period in 2021. The increase was primarily driven by $48.3 million of direct
costs related to Even Financial and MALKA, an increase in payment processing
fees of $3.5 million and underwriting expenses of $1.3 million, driven by growth
in Total Originations and Total Customers, partially offset by a $5.5 million
decrease in costs related to our bank account offering.

Professional services

                                       42
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Professional services increased by $2.9 million, or 61.3%, to $7.5 million for
the three months ended September 30, 2022, as compared to $4.7 million for the
same period in 2021. This increase resulted primarily from an increase in
professional costs related to Even Financial and MALKA of $0.9 million and other
consulting costs of $2.0 million to help support business growth.

Professional services increased by $8.8 million, or 69.0%, to $21.5 million for
the nine months ended September 30, 2022, as compared to $12.7 million for the
same period in 2021. This increase resulted primarily from an increase in
professional costs related to Even Financial and MALKA of $3.2 million, legal
services of $1.4 million and other consulting costs of $4.2 million to help
support our public reporting requirements and business growth.

Technology costs

Technology-related costs increased by $3.8 million, or 255.6%, to $5.3 million
for the three months ended September 30, 2022, as compared to $1.5 million for
the same period in 2021. This increase resulted primarily from an increase in
software licenses and subscriptions of $2.0 million, depreciation and
amortization related to equipment and software of $1.1 million and costs related
to other technology services of $0.7 million.

Technology-related costs increased by $9.3 million, or 156.0%, to $15.2 million
for the nine months ended September 30, 2022, as compared to $6.0 million for
the same period in 2021. This increase resulted primarily from an increase in
software licenses and subscriptions of $4.9 million, depreciation and
amortization related to equipment and software of $2.7 million and costs related
to other technology services of $1.8 million.

Other operating expenses

Other operating expenses increased by $2.9 million, or 35.7%, to $11.2 million
for the three months ended September 30, 2022, as compared to $8.3 million for
the same period in 2021. The increase was driven by $4.5 million of intangible
amortization expenses attributable to the acquisitions of Even Financial and
MALKA, $1.1 million of additional expenses as a result of the acquisitions of
Even Financial and MALKA and a $0.7 million increase in insurance-related
expenses, partially offset by reductions in losses for unrecovered customer
purchase transactions and other banking charges of $4.4 million.

Other operating expenses increased by $21.2 million, or 199.7%, to $31.8 million
for the nine months ended September 30, 2022, as compared to $10.6 million for
the same period in 2021. The increase was driven by $11.3 million of intangible
amortization expenses attributable to the acquisitions of Even Financial and
MALKA, a $4.8 million increase in insurance-related expenses and $3.9 million of
additional expenses as a result of the acquisitions of Even Financial and MALKA.

Our other (expense) income consists of the following:

Interest expense

Interest expense increased by $6.3 million, or 384.3%, to $7.9 million for the
three months ended September 30, 2022, as compared to $1.6 million for the same
period in 2021. This increase resulted from an increase in average debt
outstanding during the three months ended September 30, 2022 compared to the
same period in 2021. See Part I, Item 1 "Financial Statements - Debt" for more
information.

Interest expense increased by $16.7 million, or 337.4%, to $21.6 million for the
nine months ended September 30, 2022, as compared to $4.9 million for the same
period in 2021. This increase resulted from an increase in average debt
outstanding during the nine months ended September 30, 2022 compared to the same
period in 2021. See Part I, Item 1 "Financial Statements - Debt" for more
information.

Change in fair value of warrant liability

Change in fair value of warrant liability was a benefit of $0.4 million for the
three months ended September 30, 2022, as compared to an expense of $5.5 million
for the same period in 2021. The change in fair value of warrant liability was
due to changes in inputs that drive the warrant liability fair value
calculations.

                                       43
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Change in fair value of warrant liability was a benefit of $7.3 million for the
nine months ended September 30, 2022, as compared to an expense of $54.3 million
for the same period in 2021. The change in fair value of warrant liability was
due to changes in inputs that drive the warrant liability fair value
calculations.

Change in fair value of subordinated convertible bonds

Change in fair value of subordinated convertible notes had no expense for the
three and nine months ended September 30, 2022 compared to a benefit of $7.7
million and an expense $41.9 million for the three and nine months ended
September 30, 2021, respectively. There was no activity for the three and nine
months ended September 30, 2022 because the subordinated convertible notes were
converted into common stock immediately prior to the Business Combination
Closing in September 2021; the noteholders subsequently received shares of
MoneyLion Class A Common Stock upon the Business Combination Closing.

Change in fair value of contingent consideration arising from mergers and acquisitions

Change in fair value of contingent consideration from mergers and acquisitions
was a benefit of $10.2 million for the three months ended September 30, 2022, as
compared to zero for the same period in 2021. No contingent consideration from
mergers and acquisitions was outstanding for the three months ended September
30, 2021.

Change in fair value of contingent consideration from mergers and acquisitions
was a benefit of $14.0 million for the nine months ended September 30, 2022, as
compared to zero for the same period in 2021. No contingent consideration from
mergers and acquisitions was outstanding for the nine months ended September 30,
2021.

Other income (expense)

Other income increased by $0.3 million to other income of $0.5 million for the
three months ended September 30, 2022, as compared to $0.1 million for the same
period in 2021. The increase was primarily related to interest income earned on
interest bearing deposits funded during 2022, partially offset by foreign
currency translation losses during the three months ended September 30, 2022.

Other expense increased by $3.9 million to other expense of $0.4 million for the
nine months ended September 30, 2022, as compared to other income of $3.4
million for the same period in 2021. The majority of other expense in the nine
months ended September 30, 2022 was related to expenses from debt transactions
during the period. The majority of other income in the nine months ended
September 30, 2021 related to a gain from the forgiveness of SBA's PPP loan of
$3.2 million as the SBA approved the Company's application for forgiveness with
respect to the entire outstanding balance of the PPP loan.

Income tax (benefit)

See Part I, Heading 1 “Financial Statements – Income Taxes” for an explanation of the significant income tax benefit recorded in the nine months ended
September 30, 2022.

Non-GAAP Measures

In addition to total revenue, net, net income (loss) and gross profit, which are
measures presented in accordance with U.S. GAAP, management believes that
Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA provide relevant and
useful information which is widely used by analysts, investors and competitors
in our industry in assessing performance. Adjusted Revenue, Adjusted Gross
Profit and Adjusted EBITDA are supplemental measures of MoneyLion's performance
that are neither required by nor presented in accordance with U.S. GAAP.
Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA should not be
considered as substitutes for U.S. GAAP metrics such as total revenue, net, net
income (loss), gross profit or any other performance measures derived in
accordance with U.S. GAAP and may not be comparable to similar measures used by
other companies.

We define adjusted revenue as total revenue, net plus amortization of loan origination costs less provision for loss on subscriptions receivable, provision for loss on fees receivable and revenue from phased out products. We

                                       44
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believe adjusted revenue provides a meaningful understanding of in-process revenue and recurring revenue for comparability purposes.

We define Adjusted Gross Profit as gross profit less revenue derived from phased
out products. We define Adjusted EBITDA as net income (loss) plus interest
expense related to corporate debt, income tax expense (benefit), depreciation
and amortization expense, change in fair value of warrant liability, change in
fair value of subordinated convertible notes, change in fair value of contingent
consideration from mergers and acquisitions, stock-based compensation and
one-time expenses less origination financing cost of capital. We believe that
these measures provide a meaningful understanding of an aspect of profitability
based on our current product portfolio.

Adjusted Revenue, Adjusted Gross Profit and Adjusted EBITDA are useful for an investor to assess our performance because these measures:

are widely used by investors to measure a company’s operational performance;

are measures used by rating agencies, lenders and other parties to assess our creditworthiness; and

are used by our management for a variety of purposes, including as performance measures and as a basis for strategic planning and forecasting.

Reconciliation of total, net and adjusted revenues for the three and nine months ended September 30, 2022 and 2021 is as follows:

                                             Three Months Ended September 30,        Nine Months Ended September
                                                                                                 30,
                                                2022                  2021              2022             2021
                                                                      (in thousands)
Total revenues, net                        $        88,748       $        44,217     $  245,802       $  115,527
Add back:
Amortization of loan origination costs1                335                   464            802            1,039

Less:

Provision for credit losses on                      (1,256 )              (1,025 )       (4,018 )         (2,204 )
receivables - subscription receivables2
Provision for credit losses on                      (2,553 )              (1,671 )       (6,758 )         (3,563 )
receivables - fees receivables3
Revenue derived from products that have                 (0 )                  (6 )          (21 )            119
been phased out4
Adjusted Revenue                           $        85,275       $        41,978     $  235,808       $  110,917



(1)

The amortization of loan origination costs is included in net interest income from financial receivables.

(2)

We deduct provision for credit losses on receivables related to subscription
receivables from total revenue, net as it is related to revenue-based
receivables. For U.S. GAAP reporting purposes, provision for loss on receivables
related to subscription receivables is included within provision for loss on
receivables on the statement of operations. Refer to Part I, Item 1 "Financial
Statements - Summary of Significant Accounting Policies" for further discussion.

(3)

We deduct provision for credit losses on receivables related to fees receivables
from total revenue, net as it is related to revenue-based receivables. For U.S.
GAAP reporting purposes, provision for loss on receivables related to fees
receivables is included within provision for loss on receivables on the
statement of operations. Refer to Part I, Item 1 "Financial Statements - Summary
of Significant Accounting Policies" for further discussion.

                                       45
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(4)

Revenue derived from products that have been phased out includes net interest
income and fees related to unsecured personal loans, which are included within
net interest income from finance receivables and service and subscription fees,
respectively. Revenue from unsecured personal loans was $0.0 and $0.0 million
for the three months ended September 30, 2022 and 2021, respectively, and $0.0
and $(0.1) million for the nine months ended September 30, 2022 and 2021,
respectively.

The reconciliation of gross profit, which is prepared in accordance with U.S.
GAAP, to Adjusted Gross Profit for the three and nine months ended September 30,
2022 and 2021 is as follows:

                                               Three Months Ended          Nine Months Ended September
                                                  September 30,                        30,
                                              2022             2021           2022             2021
                                                                 (in thousands)
Total revenue, net                         $   88,748       $   44,217     $  245,802       $  115,527
Less:
Cost of Sales
Direct costs                                  (28,837 )        (10,885 )      (79,427 )        (31,331 )
Provision for credit losses on                 (1,256 )         (1,025 )       (4,018 )         (2,204 )
receivables - subscription receivables1
Provision for credit losses on                 (2,553 )         (1,671 )       (6,758 )         (3,563 )
receivables - fees receivables2
Technology related costs                       (2,410 )         (1,633 )       (7,396 )         (4,493 )
Professional services                          (1,665 )           (978 )       (3,850 )         (2,460 )
Compensation and benefits                      (2,780 )         (1,015 )       (6,451 )         (2,805 )
Other operating expenses                         (121 )            (54 )         (344 )           (163 )
Gross Profit                               $   49,126       $   26,957     $  137,559       $   68,506
Less:
Revenue derived from products that have            (0 )             (6 )          (21 )            119
been phased out3
Adjusted Gross Profit                      $   49,126       $   26,951     $  137,538       $   68,625



(1)
We deduct provision for credit losses on receivables related to subscription
receivables from total revenue, net as it is related to revenue-based
receivables. For U.S. GAAP reporting purposes, provision for loss on receivables
related to subscription receivables is included within provision for loss on
receivables on the statement of operations. Refer to Part I, Item 1 "Financial
Statements - Summary of Significant Accounting Policies" for further discussion.

(2)

We deduct provision for credit losses on receivables related to fees receivables
from total revenue, net as it is related to revenue-based receivables. For U.S.
GAAP reporting purposes, provision for loss on receivables related to fees
receivables is included within provision for loss on receivables on the
statement of operations. Refer to the Part I, Item 1 "Financial Statements -
Summary of Significant Accounting Policies" for further discussion.

(3)

Revenue derived from products that have been phased out includes net interest
income and fees related to unsecured personal loans, which are included within
net interest income from finance receivables and service and subscription fees,
respectively. Revenue from unsecured personal loans was $0.0 and $0.0 million
for the three months ended September 30, 2022 and 2021, respectively, and $0.0
and $(0.1) million for the nine months ended September 30, 2022 and 2021,
respectively.


                                       46
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The reconciliation of net loss, which is prepared in accordance with U.S. GAAP,
to Adjusted EBITDA for the three and nine months ended September 30, 2022 and
2021 is as follows:

                                               Three Months Ended           

Nine month period ended September 30,

                                                  September 30,
                                              2022             2021             2022                2021
                                                                    (in thousands)
Net income (loss)                          $  (21,017 )     $  (24,645 )   $       (54,060 )     $  (137,240 )
Add back:
Interest related to corporate debt1             2,896            1,627               6,937             4,947
Income tax expense (benefit)                       53               (1 )           (28,348 )              41
Depreciation and amortization expense           6,157              486              15,584             1,502
Changes in fair value of warrant                 (414 )          5,495              (7,275 )          54,285
liability
Changes in fair value of subordinated               -           (7,684 )                 -            41,877
convertible notes
Change in fair value of contingent
consideration from mergers and                (10,214 )              -             (14,034 )               -

acquisitions

Stock-based compensation expense                5,127              586              13,643             2,425
One-time expenses2                              3,068            7,183               9,887             6,247

Less:

Origination financing cost of capital3              -           (3,520 )                 -            (9,364 )
Adjusted EBITDA                            $  (14,346 )     $  (20,474 )   $       (57,669 )     $   (35,280 )



(1)
We add back the interest expense related to all outstanding corporate debt,
excluding outstanding principal balances related to the ROAR 1 SPV Credit
Facility and the ROAR 2 SPV Credit Facility. For U.S. GAAP reporting purposes,
interest expense related to corporate debt is included within interest expense
in the statement of operations.

(2)

We add back other one-time expenses, including those related to transactions,
including mergers and acquisitions and financings, that occurred,
litigation-related expenses and non-recurring costs or gains. Generally, these
expenses are included within other expenses or professional fees in the
statement of operations.

(3)

The financing cost of raising capital represents the preferred return attributable to The IIA’s investors. This is included in temporary equity in the historical consolidated balance sheets. Since we left The IIA in
December 2021this will have no impact on our adjusted EBITDA going forward.

                                       47
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Changes in the financial situation at September 30, 2022 of December 31, 2021

                                          September 30,       December 31,               Change
                                              2022                2021              $             %
Assets
Cash and restricted cash                 $       189,209     $      246,224     $ (57,015 )        -23.2 %
Consumer receivables                             152,718            153,741        (1,023 )         -0.7 %
Allowance for credit losses on
consumer receivables                             (22,633 )          (22,323 )        (310 )          1.4 %
Consumer receivables, net                        130,085            131,418        (1,333 )         -1.0 %
Enterprise receivables                            20,825              6,002        14,823          247.0 %
Property and equipment, net                        2,896              1,801         1,095           60.8 %
Goodwill and intangible assets, net              366,931             77,665       289,266          372.5 %
Other assets                                      48,854             28,428        20,426           71.9 %
Total assets                             $       758,800     $      491,538     $ 267,262           54.4 %
Liabilities and Stockholders' Equity
Liabilities:
Debt agreements                                  241,645            186,591        55,054           29.5 %
Accounts payable and accrued
liabilities                                       54,049             36,868        17,181           46.6 %
Warrant liability                                    985              8,260        (7,275 )        -88.1 %
Other liabilities                                 60,051             38,135        21,916           57.5 %
Total liabilities                                356,730            269,854        86,876           32.2 %
Redeemable convertible preferred stock           173,142
(Series A)                                                                -       173,142             nm
Stockholders' equity:
Common Stock                                          25                 23             2            8.7 %
Additional paid-in capital                       761,576            701,234        60,342            8.6 %
Accumulated deficit                             (522,973 )         (469,873 )     (53,100 )         11.3 %
Treasury stock                                    (9,700 )           (9,700 )           -            0.0 %
Total stockholders' equity                       228,928            221,684         7,244            3.3 %
Total liabilities, redeemable
convertible preferred stock and
stockholders' equity                     $       758,800     $      491,538     $ 267,262           54.4 %



Assets

Cash and restricted cash

Cash and restricted cash decreased by $57.0 million, or 23.2%, to $189.2 million
as of September 30, 2022, as compared to $246.2 million as of December 31, 2021.
Refer to the "- Cash Flows" section below for further discussion on the net
change in cash and restricted cash from operating activities, investing
activities and financing activities during the period.

Consumer receivables, net

Consumer receivables, net decreased by $1.3 million, or 1.0%, to $130.1 million
as of September 30, 2022, as compared to $131.4 million as of December 31, 2021.
The decrease was primarily attributable to a decrease in loan receivables, which
was mostly offset by an increase in Instacash receivables from December 31, 2021
to September 30, 2022.

Enterprise receivables

Enterprise receivables increased by $14.8 million, or 247.0%, to $20.8 million
as of September 30, 2022, as compared to $6.0 million as of December 31, 2021.
This increase was primarily attributable to the acquisition of Even Financial,
which significantly expanded the Company's enterprise service offering.


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Good will and intangible assets, net

Goodwill and intangible assets, net increased by $289.3 million, or 372.5%, to
$366.9 million as of September 30, 2022, as compared to $77.7 million as of
December 31, 2021. This increase was attributable to the Even Acquisition, which
closed in the first quarter of 2022.

other assets

Other assets increased by $20.4 million, or 71.9%, to $48.9 million as of
September 30, 2022, as compared to $28.4 million as of December 31, 2021. This
was primarily attributable to an increase in receivables from payment processors
and the new lease accounting standard adopted during the first quarter of 2022,
which resulted in an operating lease right-of-use asset of $8.8 million as of
September 30, 2022.

Liabilities

Debt agreements

Debt agreements increased by $55.1 million, or 29.5%, to $241.6 million as of
September 30, 2022, as compared to $186.6 million as of December 31, 2021. Refer
to the Part I, Item 1 "Financial Statements - Debt" for further discussion of
financing transactions.

Accounts payable and accrued liabilities

Accounts payable and accrued expenses increased by $17.2 million, or 46.6%, to
$54.0 million as of September 30, 2022, as compared to $36.9 million as of
December 31, 2021, which was primarily attributable to new accounts payable and
accruals of $12.9 million associated with Even Financial, which the Company
acquired during the first quarter of 2022, and an accrual related to dividends
on the Series A Redeemable Convertible Preferred Stock, which was partially
offset by a reduction in transaction costs payable related to the Business
Combination which were outstanding as of December 31, 2021.

Mandate Liability

Warrant liability decreased by $7.3 million, or 88.1%, to $1.0 million as of
September 30, 2022, as compared to $8.3 million as of December 31, 2021. Refer
to the "- Results of Operations for the Three and Nine Months Ended September
30, 2022 and 2021" section above for further discussion on the change in fair
value of warrant liability.

Other liabilities

Other liabilities increased by $21.9 million, or 57.5%, to $60.1 million as of
September 30, 2022, as compared to $38.1 million as of December 31, 2021. The
increase was primarily attributable to an increase in liabilities related to
contingent consideration from mergers and acquisitions of $8.7 million primarily
related to the Even Acquisition and an increase from the new lease accounting
standard adopted during the first quarter of 2022, which resulted in an
operating lease liability of $9.4 million as of September 30, 2022.


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Cash and capital resources

As a result of the Business Combination, we raised net proceeds of $293.2
million, including the contribution of cash held in Fusion's trust account from
its initial public offering of $91.1 million, post redemption of Fusion's common
stock held by Fusion's public stockholders prior to the Business Combination,
and $250.0 million of private investment in public equity ("PIPE") at $10.00 per
share of MoneyLion Class A Common Stock, net of transaction expenses. Prior to
the Business Combination, the funds received from previous common stock and
redeemable convertible preferred stock equity financings, as well as the
Company's ability to obtain lending commitments, provided the liquidity
necessary for the Company to fund its operations. We believe our existing cash
and cash equivalents and cash flows from operating activities will be sufficient
to meet our operating working capital needs for at least the next twelve months.
Our future financing requirements will depend on several factors including our
growth, the timing and level of spending to support continued development of our
platform, the expansion of marketing activities and merger and acquisition
activity. In addition, growth of our finance receivables increases our liquidity
needs, and any failure to meet those liquidity needs could adversely affect our
business. Additional funds may not be available on terms favorable to us or at
all. If the Company is unable to generate positive operating cash flows,
additional debt and equity financings or refinancing of existing debt financings
may be necessary to sustain future operations.

Receivables originated on our platform, including Credit Builder Plus loans and
Instacash advances, were primarily financed through IIA until the end of the
fourth quarter of 2021. Beginning in the fourth quarter of 2021, MoneyLion
transitioned its primary source of funding for originated receivables from IIA
to special purpose vehicle financings from third-party institutional lenders. As
of September 30, 2022, there was an outstanding principal balance of $83.0
million under the ROAR 1 SPV Credit Facility and an outstanding principal
balance of $73.0 million under the ROAR 2 SPV Credit Facility. See Part I, Item
1 "Financial Statements - Variable Interest Entities" for more information on
the ROAR 1 SPV Credit Facility and ROAR 2 SPV Credit Facility.

The following table presents cash, restricted cash and amounts due from the Company’s payment processor, as of September 30, 2022 and December 31, 2021:

                                     September 30,       December 31,
                                         2022                2021
Cash                                $       126,369     $      201,763
Restricted cash                              62,840             44,461

To be received from the payment processor $32,348 $18,576

Cash flow

The following table presents net change in cash and restricted cash from
operating, investing and financing activities during the nine months ended
September 30, 2022 and 2021:

                                                Nine Months Ended September 30,
                                                  2022                   2021

Net cash used in operating activities ($9,896) $

  (2,062 )
Net cash used in investing activities                (101,607 )             (91,215 )
Net cash provided by financing activities              54,488               

371 352

Net change in cash and restricted cash ($57,015) $278,075




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Operational activities

Net cash used in operating activities was $9.9 million for the nine months ended
September 30, 2022 compared to net cash used in operating activities of $2.1
million for the nine months ended September 30, 2021. This increase in net cash
used in operating activities was primarily driven by changes in working capital,
partially offset by an increase in profitability, after adjusting for non-cash
activity included in our net loss, of approximately $5.8 million during the nine
months ended September 30, 2022 compared to the nine months ended September 30,
2021.

Investing Activities

Net cash used in investing activities was $101.6 million for the nine months
ended September 30, 2022 compared to net cash used in investing activities of
$91.2 million for the nine months ended September 30, 2021. The increase in net
cash used in investing activities was primarily related to $18.6 million spent
on the Even Acquisition, net of cash received, and increased spending on
internal-use software, which was partially offset by a reduction in net
originations and collections of finance receivables during the nine months ended
September 30, 2022.

Financing Activities

Net cash provided by financing activities was $54.5 million for the nine months
ended September 30, 2022 compared to net cash provided by financing activities
of $371.4 million for the nine months ended September 30, 2021. The decrease in
cash provided by financing activities was primarily attributable to the net
proceeds received from the reverse capitalization in connection with the
Business Combination and from IIA during the nine months ended September 30,
2021 compared to 2022.

Financing Arrangements

Refer to Part I, Item 1 “Financial Statements – Debt” for more details on financing transactions during the period.

Contractual obligations

The table below summarizes the debts, leases and other minimum long-term cash obligations outstanding at September 30, 2022:

                                        Total        Remainder 2022       2023 - 2024       2025 - 2026       Thereafter
Monroe Term Loans                        90,000                    -            20,000            70,000                -
ROAR 1 SPV Credit Facility               83,000                    -                 -            83,000                -
ROAR 2 SPV Credit Facility               73,000                    -                 -            73,000                -
Operating lease obligations              12,619                  793             6,270             3,884            1,672
Vender unconditional purchase
obligations                              37,957                    -            12,457            17,000            8,500
Total                                 $ 296,576     $            793     $      38,727     $     246,884     $     10,172


Secured loans and other debts

For more information regarding our secured loans and other debt, see Part I, Item 1 “Financial Statements – Debt” in this Quarterly Report on Form 10-Q.

Equity

Series A Convertible Redeemable Preferred Shares

In connection with the acquisition of Even Financial, the Company issued
28,693,931 shares of Series A Redeemable Convertible Preferred Stock. For more
information regarding the Series A Redeemable Convertible Preferred Stock, see
Part I, Item 1 "Financial Statements - Common and Preferred Stock."


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Off-balance sheet arrangements

To September 30, 2022the Company had no significant off-balance sheet arrangements.

Significant Accounting Policies and Estimates

See Part I, Item 1 “Financial Statements – Summary of Significant Accounting Policies” for a description of significant accounting policies and estimates.

Recently issued and adopted accounting pronouncements

See Part I, Item 1 "Financial Statements - Summary of Significant Accounting
Policies" for a description of recently issued accounting pronouncements that
may potentially impact our results of operations, financial condition or cash
flows.

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