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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from  to
Commission file number 001-40568
CLEAR SECURE, INC.
(Exact name of registrant as specified in its charter)
Delaware86-2643981
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
65 East 55th Street, 17th Floor, New York, NY
 10022
(Address of Principal Executive Offices)(Zip Code)
(646) 723-1404
Registrant's telephone number, including area code
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, par value $0.00001 per shareYOUNew York Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o 
Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted and pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  x   No  o 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”“smaller
reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated fileroAccelerated filero
Non-accelerated filerxSmaller reporting companyo
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).     Yes   o     No  x
The registrant had the following outstanding shares of common stock as of August 11, 2022:
Class A Common Stock par value $0.00001 per share
82,539,208 
Class B Common Stock par value $0.00001 per share1,042,234 
Class C Common Stock par value $0.00001 per share39,944,382 
Class D Common Stock par value $0.00001 per share26,459,821 


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CLEAR SECURE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(dollars in thousands, except per share data)
June 30,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$339,736 $280,107 
Accounts receivable3,016 5,331 
Marketable securities333,933 335,228 
Prepaid revenue share fee13,031 10,272 
Prepaid expenses and other current assets12,869 22,140 
Total current assets702,585 653,078 
Property and equipment, net52,837 44,522 
Right of use asset, net23,890  
Intangible assets, net23,655 22,933 
Goodwill58,381 59,792 
Restricted cash29,307 29,019 
Other assets3,221 3,406 
Total assets$893,876 $812,750 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$10,556 $8,808 
Accrued liabilities95,438 67,220 
Deferred revenue225,986 188,563 
Total current liabilities331,980 264,591 
Other long term liabilities30,328 8,691 
Total liabilities362,308 273,282 
Commitments and contingencies (Note 19)
Class A common stock, $0.00001 par value- 1,000,000,000 shares authorized; 81,618,747 shares issued and 81,233,719 shares outstanding as of June 30, 2022
1 1 
Class B common stock, $0.00001 par value—100,000,000 shares authorized; 1,042,234 shares issued and outstanding as of June 30, 2022
  
Class C common stock, $0.00001 par value—200,000,000 shares authorized; 40,430,682 shares issued and outstanding as of June 30, 2022
  
Class D common stock, $0.00001 par value—100,000,000 shares authorized; 26,705,315 shares issued and outstanding as of June 30, 2022
  
Accumulated other comprehensive loss(1,095)(103)
Treasury stock at cost, 385,028 shares as of June 30, 2022
  
Accumulated deficit(53,638)(36,130)
Additional paid-in capital344,922 313,845 
Total stockholders’ equity attributable to Clear Secure, Inc.290,190 277,613 
Non-controlling interest241,378 261,855 
Total stockholders’ equity531,568 539,468 
Total liabilities and stockholders’ equity$893,876 $812,750 


See notes to condensed consolidated financial statements

1

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12313CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars in thousands, except per share data)
Three Months EndedSix Months Ended
June 30,
2022
June 30,
2021
June 30,
2022
June 30,
2021
Revenue$102,723 $55,178 $193,262 $105,736 
Operating expenses:
Cost of revenue share fee12,313 8,300 24,455 16,069 
Cost of direct salaries and benefits25,313 15,836 48,293 27,985 
Research and development14,333 10,941 29,845 19,946 
Sales and marketing11,365 10,901 19,191 15,857 
General and administrative48,193 44,282 94,119 71,474 
Depreciation and amortization4,328 2,664 8,712 5,202 
Operating loss(13,122)(37,746)(31,353)(50,797)
Other income (expense):
Interest income (expense), net187 (142)194 (213)
Other income (expense), net465  197  
Loss before tax(12,470)(37,888)(30,962)(51,010)
Income tax benefit (expense)147 (211)(155)(217)
Net loss(12,323)(38,099)(31,117)(51,227)
Less: net loss attributable to non-controlling interests(5,168)(36,095)(13,635)(49,223)
Net loss attributable to Clear Secure, Inc. $(7,155)$(2,004)$(17,482)$(2,004)
Net loss per share of Class A Common Stock and Class B Common Stock (Note 17)
Net loss per common share basic and diluted, Class A$(0.09)$(0.03)$(0.23)$(0.03)
Net loss per common share basic and diluted, Class B$(0.09)$(0.03)$(0.23)$(0.03)
Weighted-average shares of Class A Common Stock outstanding 79,420,204 57,371,788 78,053,957 57,371,788 
Weighted-average shares of Class B Common Stock outstanding1,042,234 1,042,234 1,042,234 1,042,234 








See notes to condensed consolidated financial statements

2

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CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(UNAUDITED)
(dollars in thousands)
Three Months EndedSix Months Ended
June 30,
2022
June 30,
2021
June 30,
2022
June 30,
2021
Net loss$(12,323)$(38,099)$(31,117)$(51,227)
Other comprehensive loss
Foreign currency translation$(74)$3 $(124)$3 
Unrealized loss on fair value of marketable securities$(709)$3 $(1,751)$28 
Total other comprehensive loss$(783)$6 $(1,875)$31 
Comprehensive loss$(13,106)$(38,093)$(32,992)$(51,196)
Less: comprehensive loss attributable to non-controlling interests$(5,529)$(36,089)$(14,517)$(49,192)
Comprehensive loss attributable to Clear Secure, Inc.$(7,577)$(2,004)$(18,475)$(2,004)

















See notes to condensed consolidated financial statements

3

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CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(UNAUDITED)
(dollars in thousands, except per share data)
Class AClass BClass CClass DAccumulated other comprehensive lossTreasury StockAccumulated deficitTotal stockholders’ equity attributable to Clear Secure, Inc.Non-Controlling InterestTotal stockholders’ equity
Number of sharesAmountNumber of SharesAmountNumber of SharesAmountNumber of SharesAmountAdditional paid in capitalNumber of SharesAmount
Balance, January 1, 202276,393,256 $1 1,042,234 $ 44,598,167 $ 26,709,821 $ $313,845 $(103)223,069 $ $(36,130)$277,613 $261,855 539,468 
Net loss— — — — — — — — — — — — (10,327)(10,327)(8,467)(18,794)
Other comprehensive loss— — — — — — — — — (570)— — — (570)(521)(1,091)
Equity-based compensation expense, net of forfeitures(60,349)— — — — — — — 7,365 — 60,349 — — 7,365 5,694 13,059 
Warrant expense— — — — — — — — 37 — — — — 37 34 71 
Exchange of shares1,025,318 — — — (1,020,812)— (4,506)— 2,606 — — — — 2,606 (2,606) 
Exercise of warrants1,207,931 — — — — — — — 3,070 — — — — 3,070 (3,070) 
IPO expenses— — — — — — — — (156)— — — — (156)(141)(297)
Balance, March 31, 202278,566,156 $1 1,042,234 $ 43,577,355 $ 26,705,315 $ $326,767 $(673)283,418 $ $(46,457)$279,638 $252,778 $532,416 
Net loss— — — — — — — — — — — — (7,155)(7,155)(5,168)(12,323)
Other comprehensive loss— — — — — — — — — (422)— — — (422)(361)(783)
Equity-based compensation expense, net of forfeitures(101,610)— — — — — — — 7,105 — 101,610 — — 7,105 5,150 12,255 
Issuance of restricted stock units7,528 — — — — — — — 27 — — — — 27 (27) 
Tax distribution to members— — — — — — — — — — — — (26)(26)(22)(48)
Warrant expense— — — — — — — — 28 — — — — 28 23 51 
Exchange of shares3,146,673 — — — (3,146,673)— — — 10,995 — — — — 10,995 (10,995) 
Balance, June 30, 202281,618,747 $1 1,042,234 $ 40,430,682 $ 26,705,315 $ $344,922 $(1,095)385,028 $ $(53,638)$290,190 $241,378 $531,568 




See notes to condensed consolidated financial statements
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Table of Contents
CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CAPITAL UNITS AND STOCKHOLDERS’ EQUITY
(UNAUDITED)
(dollars in thousands, except per share data)
Class AClass BClass CClass DProfit UnitsAccumulated other comprehensive incomeAccumulated deficitTotal stockholders’ equity attributable to Clear Secure, Inc.Non-Controlling InterestTotal stockholders’ equity
Total redeemable capital unitsNumber of sharesAmountNumber of SharesAmountNumber of SharesAmountNumber of SharesAmountAdditional paid in capitalNumber of UnitsAmount
Balance, January 1, 2021$569,251  $  $  $  $  1,868,322 $7,846 $27 $(494,769)$(486,896) $(486,896)
Net loss— — — — — — — — — — — — — (13,128)(13,128)— (13,128)
Other comprehensive loss— — — — — — — — — — — — 25 — 25 — 25 
Issuance of member units, net of costs81,567 — — — — — — — — — — — — — — — — 
Repurchase and retirement of capital units(439)— — — — — — — — — — — — (3,005)(3,005)— (3,005)
Repurchase, forfeitures and retirement of profit units— — — — — — — — — — (71,247)(56)— (8,246)(8,302)— (8,302)
Warrant expense281 — — — — — — — — — — — — — — — — 
Equity-based compensation expense, net of forfeitures— — — — — — — — — — — 327 — — 327 — 327 
Balance, March 31, 2021$650,660  $  $  $  $ $ 1,797,075 $8,117 $52 $(519,148)$(510,979)$ $(510,979)
Net loss prior to reorganization transaction— — — — — — — — — — — — (33,720)(33,720)— (33,720)
Other comprehensive income— — — — — — — — — — — — — — — 6 6 
Equity-based compensation expense, net of forfeitures— — — — — — — — — 1,786 (26,925)353 — — 2,139 2,114 4,253 
Warrant expense819 — — — — — — — — — — — — — — — — 
Exercise of warrants prior to the reorganization transaction34,224 — — — — — — — — — — — — — — — — 
Tax distribution to members— — — — — — — — — — — — — (4,018)(4,018) (4,018)
Effect of reorganization transaction(685,703)59,240,306 1 1,042,234 — — — — — 62,858 (1,770,150)(8,470)(52)556,886 611,223 74,480 685,703 
Issuance of common stock upon reorganization— — — — — 44,598,167 — 26,709,821 — — — — — — — — — — 
Net loss post reorganization transaction  —           (2,004)(2,004)(2,375)(4,379)
Balance, June 30, 2021 59,240,306 $1 1,042,234 $ 44,598,167 $ 26,709,821 $ $64,644  $ $ $(2,004)$62,641 $74,225 $136,866 
See notes to condensed consolidated financial statements

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Table of Contents
CLEAR SECURE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN CASH FLOWS
(UNAUDITED)
(dollars in thousands)
Six Months Ended
June 30,
2022
June 30,
2021
Cash flows from operating activities:
Net loss$(31,117)$(51,227)
Adjustments to reconcile net loss to net cash provided from operating activities:
Depreciation on property and equipment7,079 5,191 
Amortization on intangible assets1,634 11 
Noncash lease expense1,457  
Impairment of long-lived assets313  
Equity-based compensation25,436 6,504 
Warrant liabilities 12,796 
Deferred income tax expense (benefit)(21) 
Amortization of revolver loan costs397  
Amortization, net on marketable securities359  
Changes in operating assets and liabilities:
Accounts receivable2,315 (528)
Prepaid expenses and other assets8,444 2,313 
Prepaid revenue share fee(2,759)(1,443)
Accounts payable1,533 (1,296)
Accrued and other long term liabilities25,057 4,719 
Deferred revenue37,423 26,305 
Operating lease liabilities(1,695) 
Deferred rent (261)
Net cash provided by operating activities75,855 3,084 
Cash flows from investing activities:
Purchases of marketable securities(341,072)(63,973)
Sales of marketable securities341,072 63,988 
Purchases of property and equipment(15,214)(15,210)
Purchase of intangible assets(257)(263)
Net cash used in investing activities(15,471)(15,458)
Cash flows from financing activities:
Repurchase of members’ deficit (11,744)
Distribution to members(36)(4,018)
Proceeds from issuance of members’ deficit, net of cost 80,277 
Issuance of warrants 289 
Proceeds from the exercise of warrants 2,575 
Payment of issuance costs(297)(2,135)
Payment of revolver loan costs (718)