EX-99.1 2 financialstatementsfy25q2.htm EX-99.1 Document



Lightspeed Commerce Inc.
Condensed Interim Consolidated Financial Statements
(Unaudited)
For the three and six months ended September 30, 2024
(expressed in thousands of US dollars)


Lightspeed Commerce Inc.
Condensed Interim Consolidated Balance Sheets
(Unaudited)
As at September 30 and March 31, 2024
(expressed in thousands of US dollars)
Notes
September 30,
2024		March 31,
2024
Assets
$
$
Current assets
Cash and cash equivalents659,018 722,102 
Trade and other receivables949,191 62,284 
Merchant cash advances17105,444 74,236 
Inventories19,254 16,492 
Other current assets1047,685 42,786 
Total current assets880,592 917,900 
Lease right-of-use assets, net
15,691 17,075 
Property and equipment, net
18,527 20,496 
Intangible assets, net
191,235 227,031 
Goodwill1,359,882 1,349,235 
Other long-term assets1139,756 42,865 
Deferred tax assets557 552 
Total assets2,506,240 2,575,154 
Liabilities and Shareholders’ Equity
Current liabilities
Accounts payable and accrued liabilities1273,003 68,679 
Lease liabilities6,882 6,942 
Income taxes payable1,804 1,709 
Deferred revenue63,248 67,336 
Total current liabilities144,937 144,666 
Deferred revenue644 851 
Lease liabilities15,078 16,269 
Other long-term liabilities1,247 967 
Deferred tax liabilities379 — 
Total liabilities162,285 162,753 
Shareholders’ equity
Share capital144,311,821 4,362,691 
Additional paid-in capital220,063 213,918 
Accumulated other comprehensive income (loss)15874 (4,045)
Accumulated deficit(2,188,803)(2,160,163)
Total shareholders’ equity2,343,955 2,412,401 
Total liabilities and shareholders’ equity2,506,240 2,575,154 
Commitments and contingencies13


The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
2

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
For the three and six months ended September 30, 2024 and 2023
(expressed in thousands of US dollars, except per share amounts)
Three months ended September 30,Six months ended September 30,
Notes
2024202320242023
$
$$$
Revenues4277,182 230,273 543,273 439,359 
Direct cost of revenues5, 6162,899 134,105 320,782 255,286 
Gross profit114,283 96,168 222,491 184,073 
Operating expenses
General and administrative631,247 26,324 63,103 51,268 
Research and development630,520 33,081 57,991 67,116 
Sales and marketing665,681 60,290 122,751 115,578 
Depreciation of property and equipment1,853 1,493 3,826 2,950 
Depreciation of right-of-use assets1,369 1,647 2,763 3,877 
Foreign exchange loss (gain)(1,337)689 (1,252)1,360 
Acquisition-related compensation52 560 52 3,105 
Amortization of intangible assets22,612 23,990 45,507 48,495 
Restructuring13164 80 9,705 552 
Total operating expenses152,161 148,154 304,446 294,301 
Operating loss(37,878)(51,986)(81,955)(110,228)
Net interest income79,543 10,746 19,709 21,108 
Loss before income taxes(28,335)(41,240)(62,246)(89,120)
Income tax expense (recovery)
Current1,692 755 2,493 1,970 
Deferred(372)497 (72)105 
Total income tax expense
1,320 1,252 2,421 2,075 
Net loss(29,655)(42,492)(64,667)(91,195)
Other comprehensive income (loss)
Items that may be reclassified to net loss
Foreign currency differences on translation of foreign operations4,609 (2,917)4,849 (3,517)
Change in net unrealized gain (loss) on cash flow hedging instruments, net of tax584 (1,017)70 (39)
Total other comprehensive income (loss)155,193 (3,934)4,919 (3,556)
Total comprehensive loss(24,462)(46,426)(59,748)(94,751)
Net loss per share – basic and diluted8(0.19)(0.28)(0.42)(0.60)

The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
3

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statement of Cash Flows
(Unaudited)
For the six months ended September 30, 2024 and 2023
(expressed in thousands of US dollars)
Six months ended September 30,
20242023
Cash flows from (used in) operating activities
$
$
Net loss(64,667)(91,195)
Items not affecting cash and cash equivalents
Share-based acquisition-related compensation— 2,953 
Amortization of intangible assets45,507 48,495 
Depreciation of property and equipment and lease right-of-use assets6,589 6,827 
Deferred income tax expense (recovery)
(72)105 
Share-based compensation expense29,657 41,104 
Unrealized foreign exchange loss
8 84 
(Increase)/decrease in operating assets and increase/(decrease) in operating liabilities
Trade and other receivables13,635 4,834 
Merchant cash advances(31,208)(21,126)
Inventories(2,762)(5,220)
Other assets(1,324)(9,283)
Accounts payable and accrued liabilities2,924 1,866 
Income taxes payable95 (4,460)
Deferred revenue(4,407)(5,000)
Other long-term liabilities190 188 
Net interest income(19,709)(21,108)
Total operating activities(25,544)(50,936)
Cash flows from (used in) investing activities
Additions to property and equipment(1,902)(1,909)
Additions to intangible assets(8,103)(5,141)
Acquisition of business, net of cash acquired
(6,706)— 
Interest income 21,299 22,046 
Total investing activities4,588 14,996 
Cash flows from (used in) financing activities
Proceeds from exercise of stock options1,591 1,601 
Share issuance costs— (106)
Shares repurchased and cancelled(39,946)— 
Payment of lease liabilities and movement in restricted lease deposits(4,328)(3,905)
Financing costs
(44)— 
Total financing activities(42,727)(2,410)
Effect of foreign exchange rate changes on cash and cash equivalents
599 (313)
Net decrease in cash and cash equivalents during the period(63,084)(38,663)

Cash and cash equivalents – Beginning of period722,102 800,154 
Cash and cash equivalents – End of period659,018 761,491 
Income taxes paid2,026 6,432 
The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
4

Lightspeed Commerce Inc.
Condensed Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
For the six months ended September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares)
Issued and
Outstanding Shares
Notes
Number
of shares
Amount
Additional
paid-in
capital		Accumulated other comprehensive income (loss)Accumulated
deficit		Total
$$$$$
Balance as at March 31, 2024153,547,616 4,362,691 213,918 (4,045)(2,160,163)2,412,401 
Net loss— — — — (64,667)(64,667)
Exercise of stock options and settlement of share awards1,038,366 25,103 (23,512)— — 1,591 
Share-based compensation— — 29,657 — — 29,657 
Shares repurchased and cancelled14(2,673,926)(75,973)— — 36,027 (39,946)
Other comprehensive income15— — — 4,919 — 4,919 
Balance as at September 30, 2024151,912,056 4,311,821 220,063 874 (2,188,803)2,343,955 
Balance as at March 31, 2023151,170,305 4,298,683 198,022 (3,057)(1,996,199)2,497,449 
Net loss— — — — (91,195)(91,195)
Share issuance costs— (106)— — — (106)
Exercise of stock options and settlement of share awards1,200,943 35,048 (33,447)— — 1,601 
Share-based compensation— — 41,104 — — 41,104 
Share-based acquisition-related compensation182,357 2,953 — — — 2,953 
Other comprehensive loss15— — — (3,556)— (3,556)
Balance as at September 30, 2023152,553,605 4,336,578 205,679 (6,613)(2,087,394)2,448,250 




The accompanying notes are an integral part of these unaudited condensed interim consolidated financial statements.
5
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)

    1. Organization and nature of operations
Lightspeed Commerce Inc. ("Lightspeed" or the "Company") was incorporated on March 21, 2005 under the Canada Business Corporations Act. Its head office is located at Gare Viger, 700 Saint-Antoine St. East, Suite 300, Montréal, Quebec, Canada. Lightspeed’s one-stop commerce platform provides its customers with the critical functionalities they need to engage with consumers, manage their operations, accept payments, and grow their business. Lightspeed has customers globally in over 100 countries, empowering single- and multi-location small and medium-sized businesses to compete in an omni-channel market environment by engaging with consumers across online, mobile, social, and physical channels.
The Company’s shares are listed on both the Toronto Stock Exchange ("TSX") and the New York Stock Exchange ("NYSE") under the stock symbol "LSPD".
    2. Basis of presentation and consolidation
These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") applicable to the preparation of interim financial statements, including International Accounting Standard ("IAS") 34, Interim Financial Reporting, as issued by the International Accounting Standards Board ("IASB"). Certain information and disclosures have been omitted or condensed. These unaudited condensed interim consolidated financial statements should be read together with the Company’s audited annual consolidated financial statements and notes thereto for the fiscal year ended March 31, 2024.
These unaudited condensed interim consolidated financial statements were approved for issue by the Board of Directors of the Company on November 6, 2024.
Seasonality of interim operations
The operations of the Company are seasonal, and the results of operations for any interim period are not necessarily indicative of operations for the full fiscal year or any future period.
Estimates, judgments and assumptions
The preparation of the unaudited condensed interim consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenues and expenses during the period. These estimates and assumptions are based on historical experience, expectations of the future, and other relevant factors and are reviewed regularly. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future period affected. Actual results may differ from these estimates.
In preparing these unaudited condensed interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of uncertainty are the same as those applied and described in the Company’s audited annual consolidated financial statements for the fiscal year ended March 31, 2024.
    3. Material accounting policies
The same accounting policies and methods of computation were followed in the preparation of these unaudited condensed interim consolidated financial statements as were followed in the preparation of the most recent audited annual consolidated financial statements.
6
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
New and amended material accounting policies issued but not yet effective within the three and six months ended September 30, 2024
In May 2024, the IASB issued amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures to clarify the date of recognition and derecognition of some financial assets and liabilities including introducing a new exception for certain financial liabilities settled using an electronic payment system before the settlement date. The amendments also clarify the classification of certain financial assets and introduces disclosure requirements for financial instruments with contingent features and equity instruments classified at fair value through other comprehensive income. This amendment is effective for annual periods beginning on or after January 1, 2026. The Company is currently evaluating the impact of this amendment on its consolidated financial statements. The Company also continues to evaluate the impact of IFRS 18, Presentation and Disclosure in Financial Statements on its consolidated financial statements. For all other new and amended material accounting policies issued but not yet effective which have been identified in the most recent audited annual consolidated financial statements, the Company does not expect that the adoption of these standards will have a material impact on the financial statements of the Company in future periods.
    4. Revenues
Three months ended September 30,Six months ended September 30,
20242023

20242023
$
$

$$

Subscription revenue85,536 81,043 168,850 159,770 
Transaction-based revenue183,751 137,672 357,805 258,642 
Hardware and other revenue7,895 11,558 16,618 20,947 
Total revenues277,182 230,273 543,273 439,359 
Transaction-based revenue includes $9,275 and $17,047 of revenue from the Company's merchant cash advance program for the three and six months ended September 30, 2024 (September 30, 2023 – $4,188 and $5,781).
    5. Direct cost of revenues

Three months ended September 30,

Six months ended September 30,
2024202320242023
$
$

$$
Subscription cost of revenue18,009 19,963 35,516 39,303 
Transaction-based cost of revenue133,497 99,425 261,449 188,444 
Hardware and other cost of revenue11,393 14,717 23,817 27,539 
Total direct cost of revenues162,899 134,105 320,782 255,286 
    6. Employee compensation
The total employee compensation comprising salaries and benefits, including share-based compensation and related payroll taxes and restructuring, excluding government assistance and acquisition-related compensation, for the three and six months ended September 30, 2024, was $85,562 and $169,955 (September 30, 2023 – $90,567 and $173,279).
7
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
The following table outlines share-based compensation and related payroll taxes included in the following expenses:
Three months ended September 30,Six months ended September 30,
2024202320242023
$$$$
Direct cost of revenues1,071 1,587 1,813 3,440 
General and administrative5,534 6,463 9,834 12,644 
Research and development5,747 6,963 8,922 15,339 
Sales and marketing7,175 8,291 10,632 10,614 
Total share-based compensation and related payroll taxes
19,527 23,304 31,201 42,037 
As at September 30, 2024, the Company had 10,940,399 options (1,014,999 of which have vesting dependent on market conditions tied to the Company's future share price performance), 7,500,502 restricted share units and 142,715 deferred share units outstanding (September 30, 2023 - 11,717,285 options, 6,767,005 restricted share units and 85,456 deferred share units outstanding).
    7. Finance income and costs
Three months ended September 30,Six months ended September 30,
20242023

20242023
$
$

$$

Interest income9,899 11,143 20,459 21,898 
Interest expense(356)(397)(750)(790)
Net interest income9,543 10,746 19,709 21,108 
    8. Loss per share
The Company has stock options and share awards as potentially dilutive shares. Diluted net loss per share excludes all potentially-dilutive shares if their effect is anti-dilutive. As a result of net losses incurred, all potentially-dilutive shares have been excluded from the calculation of diluted net loss per share because including them would be anti-dilutive; therefore, basic and diluted number of shares is the same for the three and six months ended September 30, 2024 and 2023. All outstanding potentially dilutive shares could potentially dilute loss per share in the future.

Three months ended September 30,

Six months ended September 30,
2024202320242023
Issued Common Shares
151,912,056 152,553,605 151,912,056 152,553,605 
Weighted average number of Common Shares (basic and diluted)153,551,716 153,478,935 154,144,370 153,003,277 
Net loss per share – basic and diluted($0.19)($0.28)($0.42)($0.60)
The weighted average number of potentially dilutive shares that are not included in the diluted per share calculations because they would be anti-dilutive was 16,540,293 and 16,182,725 stock options and share awards for the three and six
8
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
months ended September 30, 2024 (September 30, 2023 - 17,519,996 and 17,321,764). This weighted average number includes all of the Company's issued and outstanding potentially dilutive shares notwithstanding exercise prices, as applicable.
    9. Trade and other receivables
September 30,
2024		March 31,
2024
$
$
Trade receivables40,321 48,132 
Allowance for expected credit losses(5,533)(5,056)

Trade receivables, net34,788 43,076 
Research and development tax credits receivable6,807 8,276 
Sales tax receivable4,466 7,106 
Accrued interest and other3,130 3,826 
Total trade and other receivables49,191 62,284 
    10. Other current assets
September 30,
2024		March 31,
2024
$
$
Restricted cash and restricted deposits1,525 1,582 
Prepaid expenses and deposits13,480 14,097 
Commission asset16,866 14,806 
Contract asset and other15,814 12,301 
Total other current assets47,685 42,786 
    11. Other long-term assets
September 30,
2024		March 31,
2024
$
$

Restricted cash545 368 
Prepaid expenses and deposits2,920 3,229 
Commission asset18,726 18,164 
Contract asset17,565 21,104 
Total other long-term assets39,756 42,865 
9
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
    12. Accounts payable and accrued liabilities
September 30,
2024		March 31,
2024
$$

Trade payables39,048 33,499 
Accrued compensation and benefits20,701 23,595 
Accrued payroll taxes on share-based compensation4,231 3,566 
Sales tax payable4,719 4,893 
Provisions and other
4,304 3,126 
Total accounts payable and accrued liabilities73,003 68,679 
    13. Contingencies and Provisions
Beginning in October 2021, the Company and certain of the Company's officers and directors were named as defendants to an application for authorization to bring a securities class action filed before the Superior Court of Quebec, and the Company and certain of the Company's officers and directors were named as defendants in a securities class action brought in the U.S. district court for the Eastern District of New York (a separate action brought in the Southern District of New York was voluntarily dismissed after a lead plaintiff was appointed in the Eastern District of New York action). The application and action are sought on behalf of purchasers of the Company's Common Shares, and are based upon allegations that the defendants made false and/or misleading statements to the public and seek unspecified damages. On June 27, 2022, the Company filed a motion to dismiss the securities class action brought in the U.S. district court for the Eastern District of New York. Plaintiffs to the securities class action brought in the U.S. district court for the Eastern District of New York filed an opposition to the Company's motion to dismiss, and the Company filed a reply. The Company and management intend to vigorously defend against each of these proceedings.
During the six months ended September 30, 2024, the Company, without admitting liability or wrongdoing, made a general damages payment in settlement of allegations by a residual payments partner that the Company had breached covenants in two agreements with the partner. During the fiscal year ended March 31, 2024, the residual payments partner had purported to terminate the two agreements and ceased to make ongoing payments owed to the Company thereunder. Separately, in October 2024, the residual payments partner paid the Company unpaid amounts of over $9,525 owed to it under the agreements through the quarter ended March 31, 2024. The two agreements terminated and neither the Company nor the residual payments partner have ongoing obligations thereunder.
On October 22, 2021, CloudofChange, LLC, a non-practising entity, filed a patent infringement lawsuit against the Company in the Western District of Texas. The patents at issue in the suit were U.S. Patents Nos. 9,400,640, 10,083,012 and 11,226,793. These patents are generally related to web-based point of sale builder systems. Separately, the Company applied for inter partes review of all three patents by the U.S. Patent Trial and Appeal Board (the "PTAB"). The PTAB issued final written decisions finding all asserted claims of all three patents unpatentable. The lawsuit has now been stayed pending final resolutions of the inter partes reviews. The plaintiff is in the process of appealing the PTAB's final written decisions and the Company and management intend to vigorously defend the PTAB's invalidity findings.
Except as indicated, the Company has not provisioned for the above-referenced matters.
10
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
The Company is involved in other litigation and claims in the normal course of business. Management is of the opinion that any resulting provisions and ultimate settlements would not materially affect the financial position and operating results of the Company.
Restructuring
During the three months ended June 30, 2024, the Company announced and implemented a reorganization to streamline the Company's operating model while continuing to focus on profitable growth. The restructuring expense consisted primarily of cash severance costs. The majority of the expected charges associated with this reorganization were incurred during the three months ended June 30, 2024.
Provision for severance
Six months ended September 30,
20242023
$$
Balance - Beginning of period2,591 1,106 
Expensed during the period9,705 552 
Paid during the period(11,006)(1,658)
Balance - End of period1,290 — 
The provision is included in accounts payable and accrued liabilities in the provisions and other category in note 12.
    14. Share capital

The Company’s authorized share capital consists of (i) an unlimited number of Subordinate Voting Shares and (ii) an unlimited number of preferred shares, issuable in series. All references to "Common Shares" refer to Subordinate Voting Shares in the capital of Lightspeed.
Normal Course Issuer Bid
The Board and the TSX approved a normal course issuer bid ("NCIB") for the Company to purchase at its discretion for cancellation up to 9,722,677 Subordinate Voting Shares of the Company, representing approximately 10% of the Company's "public float" (as defined in the TSX Company Manual) of Subordinate Voting Shares issued and outstanding as at March 22, 2024, over the twelve-month period commencing on April 5, 2024 and ending no later than April 4, 2025. Any Subordinate Voting Share purchased under the NCIB will be cancelled.
Under the NCIB, other than purchases made under block purchase exemptions, the Company is allowed, subject to applicable securities laws, to purchase daily, through the facilities of the TSX, a maximum of 165,177 Subordinate Voting Shares representing 25% of the average daily trading volume of 660,709 Subordinate Voting Shares, as calculated per the TSX rules for the six-month period ended on February 29, 2024.
In connection with the NCIB, the Company also entered into an automatic share purchase plan (“ASPP”) under which a designated broker may purchase Subordinate Voting Shares at times when the Company would ordinarily not be permitted to purchase its Subordinate Voting Shares due to regulatory restrictions and customary self-imposed blackout periods. Any repurchases made under the ASPP will be made in accordance with certain purchasing parameters.
11
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
During the six months ended September 30, 2024, the Company repurchased and cancelled 2,673,926 Subordinate Voting Shares for a total consideration, including transaction costs, of $39,946. The Company did not repurchase any of its Subordinate Voting Shares under an NCIB in the six months months ended September 30, 2023.
    15. Accumulated other comprehensive income (loss)
Foreign currency differences on translation of foreign operations
Hedging reserve
Total accumulated other comprehensive income (loss)
202420232024202320242023
$$$$$$
Balance as at March 31,(4,234)(2,932)189 (125)(4,045)(3,057)
Foreign currency differences on translation of foreign operations4,849 (3,517)— — 4,849 (3,517)
Change in net unrealized gain (loss) on cash flow hedging instruments
— — 96 (39)96 (39)
Deferred income tax expense
— — (26)— (26)— 
Balance as at September 30,615 (6,449)259 (164)874 (6,613)
Foreign exchange forward contracts
The Company designates certain foreign exchange forward contracts as cash flow hedges when all the requirements in IFRS 9, Financial Instruments are met. The Company's currency pair used for cash flow hedges is US dollar / Canadian dollar. The notional principal of the foreign exchange contracts was $64,350 CAD as at September 30, 2024 (March 31, 2024 - $95,550 CAD).
    16. Related party transactions
Key management personnel includes executive officers. Other related parties include close family members of the key management personnel and entities controlled by the key management personnel.
The executive compensation expense to the top five key management personnel is as follows:
Three months ended September 30,Six months ended
September 30,
2024202320242023
$$$$

Short-term employee benefits and termination benefits663 784 1,307 1,598 
Share-based payments3,505 4,163 6,515 7,527 
Total compensation paid to key management personnel4,168 4,947 7,822 9,125 
12
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
    17. Financial instruments
Fair value
The Company measures the fair value of its financial assets and financial liabilities using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value. The different levels of the fair value hierarchy are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Other techniques for which inputs are based on quoted prices for identical or similar instruments in markets that are not active, quoted prices for similar instruments in active markets, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the asset or liability;
Level 3: Techniques which use inputs that have a significant effect on the recognized fair value that require the Company to use its own assumptions about market participant assumptions.
The Company estimated the fair value of its financial instruments as described below.
The fair value of cash and cash equivalents, restricted cash and restricted deposits, trade receivables and trade accounts payable and accrued liabilities is considered to be equal to their respective carrying values due to their short-term maturities.
Recurring fair value measurements
The fair value of foreign exchange forward contracts was determined based on Level 2 inputs, which included period-end mid-market quotations for each underlying contract as calculated by the financial institution with which the Company has transacted. The quotations represent the discounted future settlement amounts based on current market rates.
The fair value of merchant cash advances was determined based on Level 3 inputs by calculating the present value of the future estimated cash flows based on the terms of the agreements. Key assumptions for the six months ended September 30, 2024 include an average repayment period of 8 months, an average discount rate of 15% and amounts deemed uncollectible, which includes write offs, of $5,640. No reasonably possible change in the key assumptions would lead to a significant change in the fair value of merchant cash advances due to their expected short-term repayment periods.
The movement in the merchant cash advances is as follows:
Six months ended
September 30,
20242023
$
$
Balance - Beginning of period74,236 29,492 
Principal issued
140,517 70,148 
Amounts collected(120,716)(53,151)
Transaction-based revenues from fees collected incorporating fair value movement
17,047 5,781 
General & administrative expenses from amounts deemed uncollectible
(5,640)(1,652)
Balance - End of period105,444 50,618 
13
Lightspeed Commerce Inc.
Notes to Condensed Interim Consolidated Financial Statements
(Unaudited)
September 30, 2024 and 2023
(expressed in thousands of US dollars, except number of shares and per share amounts)
As at September 30 and March 31, 2024, financial instruments measured at fair value in the unaudited condensed interim consolidated balance sheets were as follows:
September 30, 2024March 31, 2024
Fair
value
hierarchy
Carrying
amount
Fair
value
Fair
value
hierarchy
Carrying
amount
Fair
value
$
$

$$

Assets:
Cash and cash equivalents
Level 1659,018 659,018 Level 1722,102 722,102 
Restricted cash and restricted depositsLevel 12,070 2,070 Level 11,950 1,950 
Merchant cash advancesLevel 3105,444 105,444 Level 374,236 74,236 
Foreign exchange forward contractsLevel 2353 353 Level 2257257

14