| | |
Per Share
|
| |
Total
|
| ||||||
Public offering price
|
| | | $ | 46.00 | | | | | $ | 217,120,000 | | |
Underwriting discounts and commissions(1)
|
| | | $ | 2.76 | | | | | $ | 13,027,200 | | |
Proceeds, before expenses, to us
|
| | | $ | 43.24 | | | | | $ | 204,092,800 | | |
| | | | | iii | | | |
| | | | | iv | | | |
| | | | | 1 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 9 | | | |
| | | | | 10 | | | |
| | | | | 35 | | | |
| | | | | 36 | | | |
| | | | | 37 | | | |
| | | | | 38 | | | |
| | | | | 40 | | | |
| | | | | 46 | | | |
| | | | | 69 | | | |
| | | | | 77 | | | |
| | | | | 87 | | | |
| | | | | 94 | | | |
| | | | | 101 | | | |
| | | | | 103 | | | |
| | | | | 108 | | | |
| | | | | 113 | | | |
| | | | | 120 | | | |
| | | | | 121 | | | |
| | | | | 122 | | | |
| | | | | 123 | | | |
| | | | | F-1 | | |
| | |
Three Months Ended
March 31, |
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||||||||
Consolidated Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenues
|
| | | $ | 42,680 | | | | | $ | 31,774 | | | | | $ | 147,662 | | | | | $ | 78,110 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales
|
| | | | (20,398) | | | | | | (16,279) | | | | | | (73,180) | | | | | | (37,742) | | |
Selling and administrative expenses
|
| | | | (26,571) | | | | | | (12,723) | | | | | | (59,863) | | | | | | (45,399) | | |
Related-party expenses
|
| | | | (250) | | | | | | (250) | | | | | | (1,007) | | | | | | (1,005) | | |
Total costs and expenses
|
| | | | (47,219) | | | | | | (29,252) | | | | | | (134,050) | | | | | | (84,146) | | |
Operating (loss) income
|
| | | | (4,539) | | | | | | 2,522 | | | | | | 13,612 | | | | | | (6,036) | | |
Nonoperating income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income
|
| | | | — | | | | | | — | | | | | | 30 | | | | | | 225 | | |
Interest expense
|
| | | | (3,297) | | | | | | (3,342) | | | | | | (13,463) | | | | | | (14,225) | | |
Gain from settlement of convertible promissory note
|
| | | | 700 | | | | | | — | | | | | | 1,454 | | | | | | — | | |
Gain from bargain purchase
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,483 | | |
Other, net
|
| | | | 45 | | | | | | (13) | | | | | | 168 | | | | | | (173) | | |
Total nonoperating expense
|
| | | | (2,552) | | | | | | (3,355) | | | | | | (11,811) | | | | | | (12,690) | | |
(Loss) income before income taxes
|
| | | | (7,091) | | | | | | (833) | | | | | | 1,801 | | | | | | (18,726) | | |
Benefit (expense) from income taxes
|
| | | | 2,094 | | | | | | (1,576) | | | | | | (7,072) | | | | | | (4,850) | | |
Net loss
|
| | | | (4,997) | | | | | | (2,409) | | | | | | (5,271) | | | | | | (23,576) | | |
Net loss attributable to redeemable noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss attributable to PLBY Group, Inc.
|
| | | $ | (4,997) | | | | | $ | (2,409) | | | | | $ | (5,271) | | | | | $ | (23,576) | | |
Net loss per share, basic and diluted(1)
|
| | | $ | (0.17) | | | | | $ | (0.11) | | | | | $ | (0.24) | | | | | $ | (1.09) | | |
Weighted-average shares used in computing net loss per share, basic and diluted(1)
|
| | | | 29,823,273 | | | | | | 21,987,790 | | | | | | 22,199,591 | | | | | | 21,616,098 | | |
| | |
March 31,
|
| |
December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| |
$ 70, 249
|
| | | $ | 15,300 | | | | | $ | 13,430 | | | | | $ | 27,744 | | | |||
Total current assets
|
| | | $ | 113,049 | | | | | $ | 37,173 | | | | | $ | 47,216 | | | | | $ | 53,834 | | |
Total assets
|
| | | $ | 502,748 | | | | | $ | 402,048 | | | | | $ | 412,127 | | | | | $ | 418,651 | | |
Total current liabilities
|
| | | $ | 57,541 | | | | | $ | 56,583 | | | | | $ | 53,963 | | | | | $ | 61,149 | | |
Long-term debt, net of current portion
|
| | | $ | 153,007 | | | | | $ | 157,000 | | | | | $ | 154,230 | | | | | $ | 157,810 | | |
Total liabilities
|
| | | $ | 323,851 | | | | | $ | 318,614 | | | | | $ | 329,316 | | | | | $ | 333,557 | | |
Total stockholders’ equity
|
| | | $ | 179,105 | | | | | $ | 83,642 | | | | | $ | 83,019 | | | | | $ | 85,302 | | |
| | |
MCAC
|
| |
Playboy
|
| |
Pro Forma
Combined |
| |||||||||
Statement of Operations Data – Year Ended December 31, 2020 | | | | | | | | | | | | | | | | | | | |
Net revenues
|
| | | $ | — | | | | | $ | 147,662 | | | | | $ | 147,662 | | |
Total costs and expenses
|
| | | $ | (1,094) | | | | | $ | (134,050) | | | | | $ | (132,973) | | |
Operating (loss) income
|
| | | $ | (1,094) | | | | | $ | 13,612 | | | | | $ | 14,689 | | |
Net loss
|
| | | $ | (1,062) | | | | | $ | (5,271) | | | | | $ | (5,648) | | |
Net loss per common share – basic and diluted
|
| | | $ | (0.56) | | | | | $ | (1.33) | | | | | $ | (0.16) | | |
| | |
As of March 31, 2021
|
| |||||||||
(in thousands)
|
| |
Actual
|
| |
As adjusted
|
| ||||||
Cash and cash equivalents
|
| | | $ | 70,249 | | | | | $ | 273,532 | | |
Total debt
|
| | | $ | 157,895 | | | | | $ | 157,895 | | |
Total stockholders’ equity
|
| | | $ | 179,105 | | | | | $ | 382,388 | | |
Total capitalization
|
| | | $ | 337,000 | | | | | $ | 540,283 | | |
|
Assumed public offering price per share
|
| | | | | | | | | $ | 46.00 | | |
|
Historical net tangible book value per share as of March 31, 2021
|
| | | $ | (5.46) | | | | | | | | |
|
Increase in as adjusted net tangible book value per share attributable to new investors participating in this offering
|
| | | | 5.99 | | | | | | | | |
|
As adjusted net tangible book value per share after giving effect to this offering
|
| | | | | | | | | | 0.53 | | |
|
As adjusted dilution per share to investors participating in this offering
|
| | | | | | | | | $ | 45.47 | | |
| | |
MCAC
|
| |
Playboy
|
| |
Pro Forma
Adjustments |
| |
Note
|
| |
Pro Forma
Combined |
| ||||||||||||
Net revenues
|
| | | $ | — | | | | | $ | 147,662 | | | | | $ | — | | | | | | | | $ | 147,662 | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales
|
| | | | — | | | | | | (73,180) | | | | | | — | | | | | | | | | (73,180) | | |
Selling and administrative
|
| | | | (1,094) | | | | | | (59,863) | | | | | | 70 | | | |
aa
|
| | | | | | |
| | | | | | | | | | | | | | | | | 2,101 | | | |
bb
|
| | | | (58,786) | | |
Related-party expenses
|
| | | | — | | | | | | (1,007) | | | | | | — | | | | | | | | | (1,007) | | |
Total costs and expenses
|
| | | | (1,094) | | | | | | (134,050) | | | | | | 2,171 | | | | | | | | | (132,973) | | |
Operating (loss) income
|
| | | | (1,094) | | | | | | 13,612 | | | | | | 2,171 | | | | | | | | | 14,689 | | |
Nonoperating (expense) income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income
|
| | | | 32 | | | | | | 30 | | | | | | (32) | | | |
cc
|
| | | | 30 | | |
Interest expense
|
| | | | — | | | | | | (13,463) | | | | | | — | | | | | | | | | (13,463) | | |
Gain from settlement of convertible note
|
| | | | — | | | | | | 1,454 | | | | | | (1,454) | | | |
dd
|
| | | | — | | |
Other, net
|
| | | | — | | | | | | 168 | | | | | | — | | | | | | | | | 168 | | |
Total nonoperating expense
|
| | | | 32 | | | | | | (11,811) | | | | | | (1,486) | | | | | | | | | (13,265) | | |
(Loss) income before income taxes
|
| | | | (1,062) | | | | | | 1,801 | | | | | | 685 | | | | | | | | | 1,424 | | |
Provision for income taxes
|
| | | | — | | | | | | (7,072) | | | | | | — | | | | | | | | | (7,072) | | |
Net loss
|
| | | | (1,062) | | | | | | (5,271) | | | | | | 685 | | | | | | | | | (5,648) | | |
Net (loss) income attributable to redeemable noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
Net loss attributable to Playboy
|
| | | $ | (1,062) | | | | | $ | (5,271) | | | | | $ | 685 | | | | | | | | $ | (5,648) | | |
Net loss per share, basic and diluted
|
| | | $ | (0.56) | | | | | $ | (1.33) | | | | | | | | | | | | | | $ | (0.16) | | |
Weighted-average shares used in computing
loss per share, basic and diluted |
| | | | 1,912,761 | | | | | | 3,961,996 | | | | | | | | | | | | | | | 35,606,614 | | |
| | |
Pro Forma
Combined |
| |||
Weighted average shares calculation, basic and diluted | | | | | | | |
MCAC public shares
|
| | | | 5,740,976 | | |
MCAC public rights shares
|
| | | | 574,978 | | |
MCAC private placement shares
|
| | | | 355,241 | | |
MCAC private placement rights shares
|
| | | | 35,523 | | |
MCAC Sponsor shares
|
| | | | 737,450 | | |
MCAC shares issued to PIPE investors
|
| | | | 5,000,000 | | |
MCAC shares issued to advisors
|
| | | | 200,000 | | |
MCAC shares issued in the Merger
|
| | | | 20,916,812 | | |
Shares to be issued from one year from Merger closing
|
| | | | 2,045,634 | | |
Weighted average shares outstanding
|
| | | | 35,606,614 | | |
Percent of shares owned by Playboy
|
| | | | 62% | | |
Percent of shares owned by PIPE investors
|
| | | | 15% | | |
Percent of shares owned by MCAC
|
| | | | 23% | | |
| | |
Three Months Ended
March 31, |
| | | | | | | | | | | | | |||||||||
| | |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net revenues
|
| | | $ | 42,680 | | | | | $ | 31,774 | | | | | $ | 10,906 | | | | | | 34.3% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales
|
| | | | (20,398) | | | | | | (16,279) | | | | | | (4,119) | | | | | | 25.3% | | |
Selling and administrative expenses
|
| | | | (26,571) | | | | | | (12,723) | | | | | | (13,848) | | | | | | 108.8% | | |
Related-party expenses
|
| | | | (250) | | | | | | (250) | | | | | | — | | | | | | — | | |
Total costs and expenses
|
| | | | (47,219) | | | | | | (29,252) | | | | | | (17,967) | | | | | | 61.4% | | |
Operating (loss) income
|
| | | | (4,539) | | | | | | 2,522 | | | | | | (7,061) | | | | | | * | | |
Nonoperating income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (3,297) | | | | | | (3,342) | | | | | | 45 | | | | | | (1.3)% | | |
Other income (expense), net
|
| | | | 745 | | | | | | (13) | | | | | | 758 | | | | | | * | | |
Total nonoperating expense
|
| | | | (2,552) | | | | | | (3,355) | | | | | | 803 | | | | | | (23.9)% | | |
Loss before income taxes
|
| | | | (7,091) | | | | | | (833) | | | | | | (6,258) | | | | | | * | | |
Benefit (expense) from income taxes
|
| | | | 2,094 | | | | | | (1,576) | | | | | | 3,670 | | | | | | * | | |
Net loss
|
| | | | (4,997) | | | | | | (2,409) | | | | | | (2,588) | | | | | | * | | |
Net loss income attributable to redeemable noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss attributable to PLBY Group, Inc.
|
| | | $ | (4,997) | | | | | $ | (2,409) | | | | | $ | (2,588) | | | | | | * | | |
| | |
Year Ended
December 31, |
| | | | | | | | | | | | | |||||||||
| | |
2020
|
| |
2019
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net revenues
|
| | | $ | 147,662 | | | | | $ | 78,110 | | | | | $ | 69,552 | | | | | | 89.0% | | |
Costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales
|
| | | | (73,180) | | | | | | (37,742) | | | | | | (35,438) | | | | | | 93.9% | | |
Selling and administrative expenses
|
| | | | (59,863) | | | | | | (45,399) | | | | | | (14,464) | | | | | | 31.9% | | |
Related-party expenses
|
| | | | (1,007) | | | | | | (1,005) | | | | | | (2) | | | | | | 0.2% | | |
Total costs and expenses
|
| | | | (134,050) | | | | | | (84,146) | | | | | | (49,904) | | | | | | 59.3% | | |
Operating income (loss)
|
| | | | 13,612 | | | | | | (6,036) | | | | | | 19,648 | | | | | | * | | |
Nonoperating income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment income
|
| | | | 30 | | | | | | 225 | | | | | | (195) | | | | | | (86.7)% | | |
Interest expense
|
| | | | (13,463) | | | | | | (14,225) | | | | | | 762 | | | | | | (5.4)% | | |
Gain from settlement of convertible promissory note
|
| | | | 1,454 | | | | | | — | | | | | | 1,454 | | | | | | 100.0% | | |
Gain from bargain purchase
|
| | | | — | | | | | | 1,483 | | | | | | (1,483) | | | | | | (100.0)% | | |
Other, net
|
| | | | 168 | | | | | | (173) | | | | | | 341 | | | | | | * | | |
Total nonoperating expense
|
| | | | (11,811) | | | | | | (12,690) | | | | | | 879 | | | | | | (6.9)% | | |
Income (loss) before income taxes
|
| | | | 1,801 | | | | | | (18,726) | | | | | | 20,527 | | | | | | * | | |
Provision for income taxes
|
| | | | (7,072) | | | | | | (4,850) | | | | | | (2,222) | | | | | | 45.8% | | |
Net loss
|
| | | | (5,271) | | | | | | (23,576) | | | | | | 18,305 | | | | | | (77.6)% | | |
Net (loss) income attributable to redeemable noncontrolling interest
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net loss attributable to Playboy Enterprise, Inc.
|
| | | $ | (5,271) | | | | | $ | (23,576) | | | | | $ | 18,305 | | | | | | (77.6)% | | |
| | |
Three Months Ended March 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net loss
|
| | | $ | (4,997) | | | | | $ | (2,409) | | | | | $ | (5,271) | | | | | $ | (23,576) | | |
Adjusted for: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 3,297 | | | | | | 3,342 | | | | | | 13,463 | | | | | | 14,225 | | |
(Benefit) provision for income taxes
|
| | | | (2,094) | | | | | | 1,576 | | | | | | 7,072 | | | | | | 4,850 | | |
Depreciation and amortization
|
| | | | 728 | | | | | | 641 | | | | | | 2,258 | | | | | | 3,093 | | |
EBITDA
|
| | | | (3,066) | | | | | | 3,150 | | | | | | 17,522 | | | | | | (1,408) | | |
Adjusted for: | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock-based compensation
|
| | | | 3,498 | | | | | | 749 | | | | | | 2,988 | | | | | | 7,368 | | |
Reorganization and severance expenses(1)(2)
|
| | | | — | | | | | | 997 | | | | | | 3,165 | | | | | | 1,184 | | |
Litigation and settlement expenses(3)
|
| | | | — | | | | | | — | | | | | | — | | | | | | 5,000 | | |
Non-recurring items(4)(5)(6)
|
| | | | 6,040 | | | | | | 1,615 | | | | | | 3,230 | | | | | | (353) | | |
Management fees and expenses(7)
|
| | | | 250 | | | | | | 250 | | | | | | 1,007 | | | | | | 1,005 | | |
Nonoperating (income) expenses(8)(9)
|
| | | | — | | | | | | 59 | | | | | | (1,299) | | | | | | (52) | | |
Transaction expenses(10)(11)
|
| | | | — | | | | | | — | | | | | | 1,771 | | | | | | 353 | | |
Adjusted EBITDA
|
| | | $ | 6,722 | | | | | $ | 6,820 | | | | | $ | 28,384 | | | | | $ | 13,097 | | |
| | |
Three Months Ended March 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net revenues | | | | | | | | | | | | | | | | | | | | | | | | | |
Licensing
|
| | | $ | 14,977 | | | | | $ | 15,644 | | | | | $ | 61,142 | | | | | $ | 50,906 | | |
Direct-to-Consumer
|
| | | | 22,047 | | | | | | 10,282 | | | | | | 64,116 | | | | | | 268 | | |
Digital Subscriptions and Content
|
| | | | 5,642 | | | | | | 5,203 | | | | | | 20,913 | | | | | | 23,243 | | |
All Other
|
| | | | 14 | | | | | | 645 | | | | | | 1,491 | | | | | | 3,693 | | |
Total
|
| | | $ | 42,680 | | | | | $ | 31,774 | | | | | $ | 147,662 | | | | | $ | 78,110 | | |
Operating income (loss) | | | | | | | | | | | | | | | | | | | | | | | | | |
Licensing
|
| | | $ | 10,581 | | | | | $ | 11,115 | | | | | $ | 44,466 | | | | | $ | 35,086 | | |
Direct-to-Consumer
|
| | | | 1,675 | | | | | | (1,181) | | | | | | (752) | | | | | | (2,955) | | |
Digital Subscriptions and Content
|
| | | | 3,045 | | | | | | 2,417 | | | | | | 9,478 | | | | | | 9,084 | | |
Corporate
|
| | | | (19,809) | | | | | | (9,064) | | | | | | (38,462) | | | | | | (39,580) | | |
All Other
|
| | | | (31) | | | | | | (765) | | | | | | (1,118) | | | | | | (7,671) | | |
Total
|
| | | $ | (4,539) | | | | | $ | 2,522 | | | | | $ | 13,612 | | | | | $ | (6,036) | | |
| | |
Three Months Ended March 31,
|
| |
Year Ended December 31,
|
| ||||||||||||||||||
| | |
2021
|
| |
2020
|
| |
2020
|
| |
2019
|
| ||||||||||||
| | |
(in thousands)
|
| |||||||||||||||||||||
Net cash provided by (used in): | | | | | | | | | | | | | | | | | | | | | | | | | |
Operating activities
|
| | | $ | (14,303) | | | | | $ | (11,255) | | | | | $ | 813 | | | | | $ | 5,088 | | |
Investing activities
|
| | | | (25,941) | | | | | | (413) | | | | | | (5,470) | | | | | | (16,987) | | |
Financing activities
|
| | | | 97,063 | | | | | | (775) | | | | | | (8,490) | | | | | | 6,061 | | |
Net increase (decrease) in cash and restricted cash and cash equivalents
|
| | | $ | 56,819 | | | | | $ | (12,443) | | | | | $ | (13,147) | | | | | $ | (5,838) | | |
| | |
Payments Due by Period
|
| |||||||||||||||||||||||||||
(in thousands)
|
| |
Total
|
| |
Less than
1 Year |
| |
1 – 3 Years
|
| |
3 – 5 Years
|
| |
More than
5 Years |
| |||||||||||||||
Operating lease obligations(1)
|
| | | $ | 25,417 | | | | | $ | 3,433 | | | | | $ | 7,015 | | | | | $ | 7,416 | | | | | $ | 7,553 | | |
2014 Term Loan, principal and interest(2)
|
| | | | 195,612 | | | | | | 17,100 | | | | | | 178,512 | | | | | | — | | | | | | — | | |
Agency agreement settlement(3)
|
| | | | 2,375 | | | | | | 2,375 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 223,404 | | | | | $ | 22,908 | | | | | $ | 185,527 | | | | | $ | 7,416 | | | | | $ | 7,553 | | |
Name
|
| |
Age
|
| |
Position
|
|
Ben Kohn | | |
47
|
| | Chief Executive Officer, President, and Director | |
Lance Barton | | |
42
|
| | Chief Financial Officer | |
Chris Riley | | |
53
|
| | General Counsel and Secretary | |
Suhail Rizvi | | |
55
|
| | Chairman of the Board | |
Suying Liu | | |
33
|
| | Director | |
Tracey Edmonds | | |
53
|
| | Director | |
James Yaffe | | |
60
|
| | Director | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary
($) |
| |
Bonus
($) |
| |
Stock
Awards ($)(1) |
| |
Option
Awards ($)(1) |
| |
Non-Equity
Incentive Plan Compensation ($)(2) |
| |
All Other
Compensation ($)(3) |
| |
Total ($)
|
| ||||||||||||||||||||||||
Ben Kohn
|
| | | | 2020 | | | | | | 1,000,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,000,000 | | | | | | 5,735 | | | | | | 2,005,735 | | |
Chief Executive Officer & President
|
| | | | 2019 | | | | | | 1,000,720 | | | | | | — | | | | | | 3,739,512 | | | | | | 1,613,770 | | | | | | 1,425,829 | | | | | | 9,800 | | | | | | 7,789,631 | | |
David Israel
|
| | | | 2020 | | | | | | 497,692 | | | | | | — | | | | | | — | | | | | | — | | | | | | 250,000 | | | | | | 9,975 | | | | | | 757,667 | | |
Former Chief Financial Officer & Former Chief Operating Officer(4)
|
| | | | 2019 | | | | | | 480,720 | | | | | | — | | | | | | 747,690 | | | | | | 336,723 | | | | | | 292,589 | | | | | | 9,800 | | | | | | 1,867,522 | | |
Chris Riley
|
| | | | 2020 | | | | | | 347,115 | | | | | | — | | | | | | — | | | | | | — | | | | | | 175,000 | | | | | | 9,744 | | | | | | 531,859 | | |
General Counsel and Secretary
|
| | | | 2019 | | | | | | 313,165 | | | | | | — | | | | | | — | | | | | | 252,728 | | | | | | 202,297 | | | | | | 9,800 | | | | | | 777,990 | | |
| | |
Option Awards
|
| |
Stock Awards
|
| ||||||||||||||||||||||||||||||
Name
|
| |
Number of
Securities Underlying Unexercised Options(#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options(#) Unexercisable |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| |
Number of
Shares or Units of Stock That Have Not Vested (#) |
| |
Market Value
of Shares or Units of Stock That Have not Vested ($)(6) |
| ||||||||||||||||||
Ben Kohn
|
| | | | 948,322 | | | | | | — | | | | | | 3.35 | | | | | | 8/28/28 | | | | | | 1,082,950(1) | | | | | | 9,849,294 | | |
David Israel
|
| | | | 142,208 | | | | | | 47,402(2) | | | | | | 3.35 | | | | | | 8/28/28 | | | | | | 219,532(3) | | | | | | 1,996,613 | | |
Chris Riley
|
| | | | 64,481 | | | | | | 70,089(4) | | | | | | 3.35 | | | | | | 3/20/29 | | | | | | 5,233(5) | | | | | | 47,597 | | |
Name and Address of Beneficial Owners(1)
|
| |
Number of
Shares of Common Stocks Beneficially Owned Prior to the Offering |
| |
%
|
| |
Number of
Shares of Common Stock Beneficially Owned After the Offering |
| |
%
|
| ||||||||||||
5% Holders | | | | | | | | | | | | | | | | | | | | | | | | | |
RT-ICON Holdings LLC(2)
|
| | | | 17,001,047 | | | | | | 50.3% | | | | | | 17,001,047 | | | | | | 44.1% | | |
Drawbridge Special Opportunities Fund LP(3)
|
| | | | 3,157,109 | | | | | | 9.3% | | | | | | 3,157,109 | | | | | | 8.2% | | |
JPMorgan Chase & Co.(4)
|
| | | | 2,672,071 | | | | | | 7.9% | | | | | | 2,672,071 | | | | | | 6.9% | | |
Named Executive Officers and Directors | | | | | | | | | | | | | | | | | | | | | | | | | |
Ben Kohn(5)
|
| | | | 998,322 | | | | | | 2.9% | | | | | | 998,322 | | | | | | 2.5% | | |
Lance Barton
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Chris Riley(6)
|
| | | | 134,570 | | | | | | * | | | | | | 134,570 | | | | | | * | | |
Suhail Rizvi(2)(7)
|
| | | | 17,051,047 | | | | | | 50.4% | | | | | | 17,051,047 | | | | | | 44.3% | | |
Suying Liu
|
| | | | 545,295 | | | | | | 1.6% | | | | | | 545,295 | | | | | | 1.4% | | |
Tracey Edmonds
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
James Yaffe
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
All Named Executive Officers and Directors of the Company as
a group (7 individuals) |
| | | | 18,729,234 | | | | | | 53.7% | | | | | | 18,729,234 | | | | | | 47.3% | | |
Name
|
| |
Number of
Shares |
| |||
Canaccord Genuity LLC
|
| | | | 1,888,000 | | |
Stifel, Nicolaus & Company, Incorporated
|
| | | | 1,416,000 | | |
Roth Capital Partners, LLC
|
| | | | 472,000 | | |
Chardan Capital Markets LLC
|
| | | | 472,000 | | |
Craig-Hallum Capital Group LLC
|
| | | | 236,000 | | |
Loop Capital Markets LLC
|
| | | | 236,000 | | |
Total:
|
| | | | 4,720,000 | | |
| | | | | | | | |
Total
|
| |||||||||
| | |
Per Share
|
| |
No Exercise
|
| |
Full Exercise
|
| |||||||||
Public offering price
|
| | | $ | 46.00 | | | | | $ | 217,120,000 | | | | | $ | 249,688,000 | | |
Underwriting discounts and commissions
|
| | | $ | 2.76 | | | | | $ | 13,027,200 | | | | | $ | 14,981,280 | | |
Proceeds, before expenses, to us
|
| | | $ | 43.24 | | | | | $ | 204,092,800 | | | | | $ | 234,706,720 | | |
| | |
Page
|
| |||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements: | | | | | | | |
| | | | F-30 | | | |
Financial Statements: | | | | | | | |
| | | | F-31 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
| | | | F-34 | | | |
| | | | F-35 | | |
| | |
Page
|
| |||
| | | | F-68 | | | |
CONSOLIDATED FINANCIAL STATEMENTS | | | | | | | |
| | | | F-69 | | | |
| | | | F-70 | | | |
| | | | F-71 | | | |
| | | | F-72 | | |
| | |
Page
|
| |||
| | | | F-80 | | | |
| | | | F-81 | | | |
| | | | F-82 | | | |
| | | | F-83 | | | |
| | | | F-84 | | | |
| | | | F-85 | | |
| | |
Three Months Ended
March 31, |
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net revenues
|
| | | $ | 42,680 | | | | | $ | 31,774 | | |
Costs and expenses | | | | | | | | | | | | | |
Cost of sales
|
| | | | (20,398) | | | | | | (16,279) | | |
Selling and administrative expenses
|
| | | | (26,571) | | | | | | (12,723) | | |
Related party expenses
|
| | | | (250) | | | | | | (250) | | |
Total costs and expenses
|
| | | | (47,219) | | | | | | (29,252) | | |
Operating (loss) income
|
| | | | (4,539) | | | | | | 2,522 | | |
Nonoperating income (expense): | | | | | | | | | | | | | |
Interest expense
|
| | | | (3,297) | | | | | | (3,342) | | |
Other income (expense), net
|
| | | | 745 | | | | | | (13) | | |
Total nonoperating expense
|
| | | | (2,552) | | | | | | (3,355) | | |
Loss before income taxes
|
| | | | (7,091) | | | | | | (833) | | |
Benefit (expense) from income taxes
|
| | | | 2,094 | | | | | | (1,576) | | |
Net loss
|
| | | | (4,997) | | | | | | (2,409) | | |
Net loss attributable to redeemable noncontrolling interest
|
| | | | — | | | | | | — | | |
Net loss attributable to PLBY Group, Inc.
|
| | | $ | (4,997) | | | | | $ | (2,409) | | |
Net loss per share, basic and diluted
|
| | | $ | (0.17) | | | | | $ | (0.11) | | |
Weighted-average shares used in computing net loss per share, basic and diluted
|
| | | | 29,823,273 | | | | | | 21,987,790 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 70,249 | | | | | $ | 13,430 | | |
Restricted cash
|
| | | | 2,130 | | | | | | 2,130 | | |
Receivables, net of allowance for doubtful accounts of $233 and $233, respectively
|
| | | | 7,303 | | | | | | 6,601 | | |
Inventories, net
|
| | | | 17,310 | | | | | | 11,788 | | |
Stock receivable
|
| | | | — | | | | | | 4,445 | | |
Prepaid expenses and other current assets
|
| | | | 16,057 | | | | | | 8,822 | | |
Total current assets
|
| | | | 113,049 | | | | | | 47,216 | | |
Property and equipment, net
|
| | | | 8,093 | | | | | | 5,203 | | |
Trademarks and trade name
|
| | | | 331,475 | | | | | | 336,655 | | |
Goodwill
|
| | | | 19,235 | | | | | | 504 | | |
Other intangible assets, net
|
| | | | 11,514 | | | | | | 2,377 | | |
Contract assets, net of current portion
|
| | | | 6,641 | | | | | | 7,159 | | |
Other noncurrent assets
|
| | | | 12,741 | | | | | | 13,013 | | |
Total assets
|
| | | $ | 502,748 | | | | | $ | 412,127 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 11,199 | | | | | $ | 8,678 | | |
Accrued salaries, wages, and employee benefits
|
| | | | 2,649 | | | | | | 4,870 | | |
Deferred revenues, current portion
|
| | | | 20,085 | | | | | | 11,159 | | |
Long-term debt, current portion
|
| | | | 4,888 | | | | | | 4,470 | | |
Convertible promissory notes
|
| | | | — | | | | | | 6,230 | | |
Other current liabilities and accrued expenses
|
| | | | 18,720 | | | | | | 18,556 | | |
Total current liabilities
|
| | | | 57,541 | | | | | | 53,963 | | |
Deferred revenues, net of current portion
|
| | | | 34,329 | | | | | | 43,792 | | |
Long-term debt, net of current portion
|
| | | | 153,007 | | | | | | 154,230 | | |
Deferred tax liabilities, net
|
| | | | 74,897 | | | | | | 74,909 | | |
Other noncurrent liabilities
|
| | | | 4,077 | | | | | | 2,422 | | |
Total liabilities
|
| | | | 323,851 | | | | | | 329,316 | | |
Commitments and contingencies (Note 13) | | | | | | | | | | | | | |
Redeemable noncontrolling interest
|
| | | | (208) | | | | | | (208) | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.0001 par value per share, 150,000,000 shares authorized, 34,260,980 shares issued and 33,560,980 shares outstanding as of March 31, 2021; 20,626,249 shares issued and outstanding as of December 31, 2020
|
| | | | 3 | | | | | | 2 | | |
Treasury stock, at cost, 700,000 shares and 0 shares as of March 31, 2021 and December 31, 2020
|
| | | | (4,445) | | | | | | — | | |
Additional paid-in capital
|
| | | | 266,560 | | | | | | 161,033 | | |
Accumulated deficit
|
| | | | (83,013) | | | | | | (78,016) | | |
Total stockholders’ equity
|
| | | | 179,105 | | | | | | 83,019 | | |
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity
|
| | | $ | 502,748 | | | | | $ | 412,127 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Treasury
Stock |
| |||||||||||||||||||||||||||
Balance at December 31, 2020, as previously
reported |
| | | | 3,681,185 | | | | | $ | 36 | | | | | $ | (23,453) | | | | | $ | 184,452 | | | | | $ | (78,016) | | | | | $ | 83,019 | | |
Retroactive application of recapitalization
|
| | | | 16,945,064 | | | | | | (34) | | | | | | 23,453 | | | | | | (23,419) | | | | | | — | | | | | | — | | |
Balance at December 31, 2020, effect of reverse acquisition (Note 1)
|
| | | | 20,626,249 | | | | | | 2 | | | | | | — | | | | | | 161,033 | | | | | | (78,016) | | | | | | 83,019 | | |
Conversion of convertible promissory note
|
| | | | 290,563 | | | | | | — | | | | | | — | | | | | | 2,730 | | | | | | — | | | | | | 2,730 | | |
Business Combination and PIPE financing
|
| | | | 12,644,168 | | | | | | 1 | | | | | | (4,445) | | | | | | 99,299 | | | | | | — | | | | | | 94,855 | | |
Stock-based compensation expense and vesting of restricted stock units
|
| | | | — | | | | | | — | | | | | | — | | | | | | 3,498 | | | | | | — | | | | | | 3,498 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (4,997) | | | | | | (4,997) | | |
Balance at March 31, 2021
|
| | | | 33,560,980 | | | | | $ | 3 | | | | | $ | (4,445) | | | | | $ | 266,560 | | | | | $ | (83,013) | | | | | $ | 179,105 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Treasury
Stock |
| |||||||||||||||||||||||||||
Balance at December 31, 2019, as previously reported
|
| | | | 3,681,185 | | | | | $ | 36 | | | | | $ | (23,453) | | | | | $ | 181,464 | | | | | $ | (72,745) | | | | | $ | 85,302 | | |
Retroactive application of recapitalization
|
| | | | 16,945,064 | | | | | | (34) | | | | | | 23,453 | | | | | | (23,419) | | | | | | — | | | | | | — | | |
Balance at December 31, 2019, effect of reverse acquisition (Note 1)
|
| | | | 20,626,249 | | | | | | 2 | | | | | | — | | | | | | 158,045 | | | | | | (72,745) | | | | | | 85,302 | | |
Stock-based compensation expense and vesting of restricted stock units
|
| | | | — | | | | | | — | | | | | | — | | | | | | 749 | | | | | | — | | | | | | 749 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,409) | | | | | | (2,409) | | |
Balance at March 31, 2020
|
| | | | 20,626,249 | | | | | $ | 2 | | | | | $ | — | | | | | $ | 158,794 | | | | | $ | (75,154) | | | | | $ | 83,642 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss
|
| | | $ | (4,997) | | | | | $ | (2,409) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Depreciation of property and equipment
|
| | | | 435 | | | | | | 391 | | |
Stock-based compensation
|
| | | | 3,498 | | | | | | 749 | | |
Fair value measurement of PSARs liability
|
| | | | 215 | | | | | | — | | |
Gain from settlement of convertible promissory note
|
| | | | (700) | | | | | | — | | |
Amortization of other intangible assets
|
| | | | 293 | | | | | | 250 | | |
Deferred income taxes
|
| | | | (12) | | | | | | 76 | | |
Increase in inventory reserve
|
| | | | 13 | | | | | | 1 | | |
Other
|
| | | | 36 | | | | | | 81 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Receivables, net
|
| | | | (543) | | | | | | 384 | | |
Inventories, net
|
| | | | (171) | | | | | | 1,198 | | |
Contract assets
|
| | | | (151) | | | | | | 416 | | |
Prepaid expenses and other assets
|
| | | | (6,383) | | | | | | 2,002 | | |
Trademarks and trade name
|
| | | | (150) | | | | | | (125) | | |
Account payable
|
| | | | 245 | | | | | | (1,038) | | |
Accrued salaries, wages, and employee benefits
|
| | | | (2,738) | | | | | | (2,709) | | |
Deferred revenues
|
| | | | (1,813) | | | | | | (10,426) | | |
Other liabilities and accrued expenses
|
| | | | (1,380) | | | | | | (96) | | |
Net cash used in operating activities
|
| | | | (14,303) | | | | | | (11,255) | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (1,111) | | | | | | (413) | | |
Acquisition of TLA Acquisition Corp, net of cash acquired
|
| | | | (24,830) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (25,941) | | | | | | (413) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Repayment of long-term debt
|
| | | | (835) | | | | | | (775) | | |
Repayment of convertible notes
|
| | | | (2,800) | | | | | | — | | |
Net contribution from the Merger and PIPE Financing
|
| | | | 100,698 | | | | | | — | | |
Net cash provided by (used in) financing activities
|
| | | | 97,063 | | | | | | (775) | | |
Net increase (decrease) in cash and cash equivalents and restricted cash
|
| | | | 56,819 | | | | | | (12,443) | | |
Balance, beginning of year
|
| | | | 15,560 | | | | | | 28,707 | | |
Balance, end of period
|
| | | $ | 72,379 | | | | | $ | 16,264 | | |
Cash and cash equivalents and restricted cash consist of: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 70,249 | | | | | $ | 15,300 | | |
Restricted cash
|
| | | | 2,130 | | | | | | 964 | | |
Total
|
| | | $ | 72,379 | | | | | $ | 16,264 | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 888 | | | | | $ | 109 | | |
Cash paid for interest
|
| | | $ | 3,453 | | | | | $ | 3,606 | | |
NONCASH FINANCING ACTIVITIES | | | | | | | | | | | | | |
Conversion of convertible notes into common stock
|
| | | $ | 2,730 | | | | | $ | — | | |
Reclassification of stock receivable to treasury stock upon settlement
|
| | | $ | 4,445 | | | | | $ | — | | |
|
Cash — trust account and cash
|
| | | $ | 54,044 | | |
|
Cash — PIPE Investment
|
| | | | 46,844 | | |
|
Less: transaction costs paid in 2021
|
| | | | (190) | | |
|
Net contributions from Merger and PIPE Investment
|
| | | | 100,698 | | |
|
Less: transaction costs paid in 2020
|
| | | | (292) | | |
|
Less: accrued transaction costs and other liabilities
|
| | | | (1,106) | | |
|
Merger and PIPE Investment
|
| | | $ | 99,300 | | |
| | |
March 31, 2021
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
PSARs liability
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,073 | | | | | $ | 1,073 | | |
Total liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,073 | | | | | $ | 1,073 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
PSARs liability
|
| | | $ | — | | | | | $ | — | | | | | $ | 858 | | | | | $ | 858 | | |
Total liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 858 | | | | | $ | 858 | | |
| | |
Fair Value
|
| |||
Balance at December 31, 2020
|
| | | $ | 858 | | |
Change in fair value
|
| | | | 215 | | |
Balance at March 31, 2021
|
| | | $ | 1,073 | | |
| | |
Three Months Ended March 31, 2021
|
| |||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to
Consumer |
| |
Digital
Subscription and Content |
| |
Other
|
| |
Total
|
| |||||||||||||||
Trademark Licensing
|
| | | $ | 14,977 | | | | | $ | — | | | | | $ | 727 | | | | | $ | — | | | | | $ | 15,704 | | |
Magazine and Digital Subscriptions
|
| | | | — | | | | | | — | | | | | | 2,323 | | | | | | 14 | | | | | | 2,337 | | |
TV and Cable Programming
|
| | | | — | | | | | | — | | | | | | 2,592 | | | | | | — | | | | | | 2,592 | | |
Consumer Products
|
| | | | — | | | | | | 22,047 | | | | | | — | | | | | | — | | | | | | 22,047 | | |
Total revenues
|
| | | $ | 14,977 | | | | | $ | 22,047 | | | | | $ | 5,642 | | | | | $ | 14 | | | | | $ | 42,680 | | |
| | |
Three Months Ended March 31, 2020
|
| |||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to
Consumer |
| |
Digital
Subscription and Content |
| |
Other
|
| |
Total
|
| |||||||||||||||
Trademark Licensing
|
| | | $ | 15,644 | | | | | $ | — | | | | | $ | 708 | | | | | $ | — | | | | | $ | 16,352 | | |
Magazine and Digital Subscriptions
|
| | | | — | | | | | | — | | | | | | 1,988 | | | | | | 645 | | | | | | 2,633 | | |
TV and Cable Programming
|
| | | | — | | | | | | — | | | | | | 2,507 | | | | | | — | | | | | | 2,507 | | |
Consumer Products
|
| | | | — | | | | | | 10,282 | | | | | | — | | | | | | — | | | | | | 10,282 | | |
Total revenues
|
| | | $ | 15,644 | | | | | $ | 10,282 | | | | | $ | 5,203 | | | | | $ | 645 | | | | | $ | 31,774 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Editorial and other pre-publication costs
|
| | | $ | 357 | | | | | $ | 298 | | |
Merchandise finished goods
|
| | | | 16,953 | | | | | | 11,490 | | |
Total
|
| | | $ | 17,310 | | | | | $ | 11,788 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Prepaid agency fees and commissions
|
| | | $ | 1,706 | | | | | $ | 2,408 | | |
Prepaid foreign withholding taxes
|
| | | | 5,066 | | | | | | 2,207 | | |
Prepaid insurance
|
| | | | 3,997 | | | | | | 313 | | |
Contract assets, current portion
|
| | | | 1,842 | | | | | | 1,173 | | |
Licensed programming costs
|
| | | | 491 | | | | | | 497 | | |
Other
|
| | | | 2,955 | | | | | | 2,224 | | |
Total
|
| | | $ | 16,057 | | | | | $ | 8,822 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Furniture and fixtures
|
| | | $ | 8,669 | | | | | $ | 7,221 | | |
Leasehold improvements
|
| | | | 5,339 | | | | | | 3,543 | | |
Total property and equipment, gross
|
| | | | 14,008 | | | | | | 10,754 | | |
Less: accumulated depreciation
|
| | | | (5,915) | | | | | | (5,551) | | |
Total
|
| | | $ | 8,093 | | | | | $ | 5,203 | | |
| | |
Weighted-
Average Life (Years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
March 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Trade names
|
| | | | 10 | | | | | $ | 9,430 | | | | | $ | (168) | | | | | $ | 9,262 | | |
Distribution agreements
|
| | | | 15 | | | | | | 3,720 | | | | | | (2,500) | | | | | | 1,220 | | |
Photo and magazine archives
|
| | | | 10 | | | | | | 2,000 | | | | | | (2,000) | | | | | | — | | |
Customer list
|
| | | | 10 | | | | | | 1,180 | | | | | | (148) | | | | | | 1,032 | | |
Total
|
| | | | | | | | | $ | 16,330 | | | | | $ | (4,816) | | | | | $ | 11,514 | | |
| | |
Weighted-
Average Life (Years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution agreements
|
| | | | 15 | | | | | $ | 3,720 | | | | | $ | (2,438) | | | | | $ | 1,282 | | |
| | |
Weighted-
Average Life (Years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
Photo and magazine archives
|
| | | | 10 | | | | | | 2,000 | | | | | | (1,967) | | | | | | 33 | | |
Licensing agreements
|
| | | | 9 | | | | | | 5,913 | | | | | | (5,913) | | | | | | — | | |
Customer list
|
| | | | 10 | | | | | | 1,180 | | | | | | (118) | | | | | | 1,062 | | |
Total
|
| | | | | | | | | $ | 12,813 | | | | | $ | (10,436) | | | | | $ | 2,377 | | |
|
|
Remainder of 2021
|
| | | $ | 983 | | |
|
2022
|
| | | | 1,309 | | |
|
2023
|
| | | | 1,309 | | |
|
2024
|
| | | | 1,309 | | |
|
2025
|
| | | | 1,309 | | |
|
Thereafter
|
| | | | 5,295 | | |
|
Total
|
| | | $ | 11,514 | | |
|
Balance at December 31, 2020
|
| | | $ | 504 | | |
|
Acquisition of TLA
|
| | | | 18,731 | | |
|
Balance at March 31, 2021
|
| | | $ | 19,235 | | |
| | |
March 31, 2021
|
| |
December 31,
2020 |
| ||||||
Accrued interest
|
| | | $ | 3,805 | | | | | $ | 3,991 | | |
Accrued agency fees and commissions
|
| | | | 4,446 | | | | | | 5,950 | | |
Other
|
| | | | 10,469 | | | | | | 8,615 | | |
Total
|
| | | $ | 18,720 | | | | | $ | 18,556 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Term loan, due 2023 (as amended)
|
| | | $ | 158,223 | | | | | $ | 159,058 | | |
Convertible promissory notes
|
| | | | — | | | | | | 6,230 | | |
Total debt
|
| | | | 158,223 | | | | | | 165,288 | | |
Less: unamortized debt issuance costs
|
| | | | (328) | | | | | | (358) | | |
Total debt, net of unamortized debt issuance costs
|
| | | | 157,895 | | | | | | 164,930 | | |
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Less: current portion of term loan
|
| | | | (4,888) | | | | | | (4,470) | | |
Less: convertible promissory notes
|
| | | | — | | | | | | 6,230 | | |
Total debt, net of current portion
|
| | | $ | 153,007 | | | | | $ | 154,230 | | |
|
|
Remainder of 2021
|
| | | $ | 3,757 | | |
|
2022
|
| | | | 3,758 | | |
|
2023
|
| | | | 150,708 | | |
|
Total
|
| | | $ | 158,223 | | |
|
| | |
March 31,
2021 |
| |
December 31,
2020 |
| ||||||
Shares available for grant under stock option plans
|
| | | | 4,262,364 | | | | | | 1,646,518 | | |
Options issued and outstanding under stock option plans
|
| | | | 3,560,541 | | | | | | 2,594,597 | | |
Unvested restricted stock units
|
| | | | — | | | | | | 313,976 | | |
Vested restricted stock units not yet settled
|
| | | | 2,045,634 | | | | | | 1,731,658 | | |
Convertible promissory note payable to CAA
|
| | | | — | | | | | | 290,563 | | |
Unit purchase options
|
| | | | 379,486 | | | | | | — | | |
Total common stock reserved for future issuance
|
| | | | 10,248,025 | | | | | | 6,577,312 | | |
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Contractual Term (years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
Balance — December 31, 2020
|
| | | | 2,594,597 | | | | | $ | 3.79 | | | | | | 8.5 | | | | | $ | 13,791 | | |
Granted(1) | | | | | 965,944 | | | | | | 10.52 | | | | | | | | | | | | | | |
Forfeited
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Cancelled
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Balance — March 31, 2021
|
| | | | 3,560,541 | | | | | $ | 5.61 | | | | | | 8.4 | | | | | $ | 49,765 | | |
Exercisable — March 31, 2021
|
| | | | 2,594,597 | | | | | $ | 3.79 | | | | | | 7.9 | | | | | $ | 41,004 | | |
| | |
Number of
Awards |
| |
Weighted-
Average Grant Date Fair Value per Share |
| ||||||
Unvested and outstanding balance at December 31, 2020
|
| | | | 313,976 | | | | | $ | 4.30 | | |
Granted
|
| | | | — | | | | | | — | | |
Vested
|
| | | | (313,976) | | | | | | 4.30 | | |
Forfeited
|
| | | | — | | | | | | — | | |
Unvested and outstanding balance at March 31, 2021
|
| | | | — | | | | | $ | — | | |
| | |
Three Months Ended March 31,
|
| ||||||
| | |
2021
|
| |
2020
|
| |||
Fair value of common stock
|
| | | $ | 10.52 | | | |
$3.94 – $4.17
|
|
Expected term, in years
|
| | | | 5.86 | | | |
5.88 – 6.06
|
|
Expected volatility
|
| | | | 47% | | | |
40%
|
|
Risk-free interest rate
|
| | | | 0.57% | | | |
1.45% – 1.46%
|
|
Expected dividend yield
|
| | | | 0% | | | |
0%
|
|
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cost of sales
|
| | | $ | — | | | | | $ | 5 | | |
Selling and administrative expenses
|
| | | | 3,498 | | | | | | 744 | | |
Total
|
| | | $ | 3,498 | | | | | $ | 749 | | |
| | |
Minimum
Lease Commitments |
| |
Sublease
Income |
| ||||||
Remainder of 2021
|
| | | $ | 5,608 | | | | | $ | (216) | | |
2022
|
| | | | 6,393 | | | | | | (313) | | |
2023
|
| | | | 5,409 | | | | | | (322) | | |
2024
|
| | | | 4,774 | | | | | | (246) | | |
2025
|
| | | | 4,060 | | | | | | — | | |
Thereafter
|
| | | | 8,046 | | | | | | — | | |
| | |
Minimum
Lease Commitments |
| |
Sublease
Income |
| ||||||
Total
|
| | | $ | 34,290 | | | | | $ | (1,097) | | |
|
| | |
Three Months Ended March 31, 2020
|
| |||||||||||||||
| | |
Corporate
|
| |
Other
|
| |
Total
|
| |||||||||
Cost of sales
|
| | | $ | — | | | | | $ | 8 | | | | | $ | 8 | | |
Selling and administrative expenses
|
| | | | 170 | | | | | | — | | | | | | 170 | | |
Total severance costs
|
| | | $ | 170 | | | | | $ | 8 | | | | | $ | 178 | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Stock options to purchase common stock
|
| | | | 3,560,541 | | | | | | 2,399,195 | | |
Unvested restricted stock units
|
| | | | — | | | | | | 525,177 | | |
Convertible promissory notes
|
| | | | — | | | | | | 2,378,753 | | |
Total
|
| | | | 3,560,541 | | | | | | 5,303,125 | | |
| Tangible net assets and liabilities: | | | | | | | |
|
Cash
|
| | | $ | 1,823 | | |
|
Accounts receivable
|
| | | | 159 | | |
|
Inventory
|
| | | | 5,364 | | |
|
Prepaid expenses and other current assets
|
| | | | 330 | | |
|
Property and equipment
|
| | | | 2,214 | | |
|
Other noncurrent assets
|
| | | | 245 | | |
|
Accounts payable
|
| | | | (1,590) | | |
|
Accrued salaries, wages, and employee benefits
|
| | | | (517) | | |
|
Other current liabilities
|
| | | | (3,960) | | |
|
Deferred revenue
|
| | | | (1,276) | | |
|
Deferred tax liability
|
| | | | (108) | | |
|
Unfavorable leasehold interest
|
| | | | (770) | | |
|
Total net assets
|
| | | | 1,914 | | |
|
Intangible assets:
|
| | | | | | |
|
Trade name
|
| | | | 4,100 | | |
|
Total intangible assets
|
| | | | 4,100 | | |
|
Net assets acquired
|
| | | | 6,014 | | |
|
Purchase consideration
|
| | | | 24,745 | | |
|
Goodwill
|
| | | $ | 18,731 | | |
| | |
Three Months Ended March 31, 2021
|
| |
Three Months Ended March 31, 2020
|
| ||||||||||||||||||
| | |
As Reported
|
| |
Pro Forma
|
| |
As Reported
|
| |
Pro Forma
|
| ||||||||||||
Net revenues
|
| | | $ | 42,680 | | | | | $ | 51,529 | | | | | $ | 31,774 | | | | | $ | 41,641 | | |
| | |
Three Months Ended March 31, 2021
|
| |
Three Months Ended March 31, 2020
|
| ||||||||||||||||||
| | |
As Reported
|
| |
Pro Forma
|
| |
As Reported
|
| |
Pro Forma
|
| ||||||||||||
Net loss
|
| | | $ | (4,997) | | | | | $ | (3,660) | | | | | $ | (2,409) | | | | | $ | (1,638) | | |
| | |
Three Months Ended March 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Net revenues: | | | | | | | | | | | | | |
Licensing
|
| | | $ | 14,977 | | | | | $ | 15,644 | | |
Direct-to-Consumer
|
| | | | 22,047 | | | | | | 10,282 | | |
Digital Subscriptions and Content
|
| | | | 5,642 | | | | | | 5,203 | | |
All Other
|
| | | | 14 | | | | | | 645 | | |
Total
|
| | | $ | 42,680 | | | | | $ | 31,774 | | |
Operating income (loss): | | | | | | | | | | | | | |
Licensing
|
| | | $ | 10,581 | | | | | $ | 11,115 | | |
Direct-to-Consumer
|
| | | | 1,675 | | | | | | (1,181) | | |
Digital Subscriptions and Content
|
| | | | 3,045 | | | | | | 2,417 | | |
Corporate
|
| | | | (19,809) | | | | | | (9,064) | | |
All Other
|
| | | | (31) | | | | | | (765) | | |
Total
|
| | | $ | (4,539) | | | | | $ | 2,522 | | |
| | |
Page
|
| |||
Audited Consolidated Financial Statements: | | | | | | | |
| | | | F-30 | | | |
Financial Statements: | | | | | | | |
| | | | F-31 | | | |
| | | | F-32 | | | |
| | | | F-33 | | | |
| | | | F-34 | | | |
| | | | F-35 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net revenues
|
| | | $ | 147,662 | | | | | $ | 78,110 | | |
Costs and expenses: | | | | | | | | | | | | | |
Cost of sales
|
| | | | (73,180) | | | | | | (37,742) | | |
Selling and administrative expenses
|
| | | | (59,863) | | | | | | (45,399) | | |
Related-party expenses
|
| | | | (1,007) | | | | | | (1,005) | | |
Total costs and expenses
|
| | | | (134,050) | | | | | | (84,146) | | |
Operating income (loss)
|
| | | | 13,612 | | | | | | (6,036) | | |
Nonoperating income (expense): | | | | | | | | | | | | | |
Investment income
|
| | | | 30 | | | | | | 225 | | |
Interest expense
|
| | | | (13,463) | | | | | | (14,225) | | |
Gain from settlement of convertible promissory note
|
| | | | 1,454 | | | | | | — | | |
Gain from bargain purchase
|
| | | | — | | | | | | 1,483 | | |
Other, net
|
| | | | 168 | | | | | | 173 | | |
Total nonoperating expense
|
| | | | (11,811) | | | | | | (12,690) | | |
Income (loss) before provision for income taxes
|
| | | | 1,801 | | | | | | (18,726) | | |
Provision for income taxes
|
| | | | (7,072) | | | | | | (4,850) | | |
Net loss
|
| | | | (5,271) | | | | | | (23,576) | | |
Net loss attributable to redeemable noncontrolling interest
|
| | | | — | | | | | | — | | |
Net loss attributable to Playboy Enterprises, Inc.
|
| | | $ | (5,271) | | | | | $ | (23,576) | | |
Net loss per share, basic and diluted
|
| | | $ | (1.33) | | | | | $ | (6.12) | | |
Weighted-average shares used in computing net loss per share, basic and
diluted |
| | | | 3,961,996 | | | | | | 3,854,256 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 13,430 | | | | | $ | 27,744 | | |
Restricted cash
|
| | | | 2,130 | | | | | | 963 | | |
Receivables, net of allowance for doubtful accounts of $233 and $302, respectively
|
| | | | 6,601 | | | | | | 6,153 | | |
Inventories, net
|
| | | | 11,788 | | | | | | 11,750 | | |
Stock receivable
|
| | | | 4,445 | | | | | | — | | |
Prepaid expenses and other current assets
|
| | | | 8,822 | | | | | | 7,224 | | |
Total current assets
|
| | | | 47,216 | | | | | | 53,834 | | |
Property and equipment, net
|
| | | | 5,203 | | | | | | 5,932 | | |
Trademarks and trade name
|
| | | | 336,655 | | | | | | 335,934 | | |
Goodwill
|
| | | | 504 | | | | | | 504 | | |
Other intangible assets, net
|
| | | | 2,377 | | | | | | 3,052 | | |
Contract assets, net of current portion
|
| | | | 7,159 | | | | | | 7,391 | | |
Other noncurrent assets
|
| | | | 13,013 | | | | | | 12,004 | | |
Total assets
|
| | | $ | 412,127 | | | | | $ | 418,651 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 8,678 | | | | | $ | 7,859 | | |
Payables to related parties
|
| | | | — | | | | | | 5 | | |
Accrued salaries, wages, and employee benefits
|
| | | | 4,870 | | | | | | 4,603 | | |
Deferred revenues, current portion
|
| | | | 11,159 | | | | | | 9,857 | | |
Long-term debt, current portion
|
| | | | 4,470 | | | | | | 3,182 | | |
Convertible promissory notes
|
| | | | 6,230 | | | | | | 13,500 | | |
Other current liabilities and accrued expenses
|
| | | | 18,556 | | | | | | 22,143 | | |
Total current liabilities
|
| | | | 53,963 | | | | | | 61,149 | | |
Deferred revenues, net of current portion
|
| | | | 43,792 | | | | | | 41,734 | | |
Long-term debt, net of current portion
|
| | | | 154,230 | | | | | | 157,810 | | |
Deferred tax liabilities, net
|
| | | | 74,909 | | | | | | 72,288 | | |
Other noncurrent liabilities
|
| | | | 2,422 | | | | | | 576 | | |
Total liabilities
|
| | | | 329,316 | | | | | | 333,557 | | |
Commitments and contingencies (Note 16) | | | | | | | | | | | | | |
Redeemable noncontrolling interest
|
| | | | (208) | | | | | | (208) | | |
Stockholders’ equity(1): | | | | | | | | | | | | | |
Common stock, $0.01 par value; 5,000,000 shares authorized at December 31, 2020 and 2019; 4,846,032 shares issued and 3,681,185 shares outstanding at December 31, 2020 and 2019
|
| | | | 36 | | | | | | 36 | | |
Treasury stock, at cost: 1,164,847 shares at December 31, 2020 and 2019
|
| | | | (23,453) | | | | | | (23,453) | | |
Additional paid-in capital
|
| | | | 184,452 | | | | | | 181,464 | | |
Accumulated deficit
|
| | | | (78,016) | | | | | | (72,745) | | |
Total stockholders’ equity
|
| | | | 83,019 | | | | | | 85,302 | | |
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity
|
| | | $ | 412,127 | | | | | $ | 418,651 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
|
| ||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Treasury
Stock(1) |
| |||||||||||||||||||||||||||
Balance at December 31, 2018
|
| | | | 3,681,185 | | | | | $ | 36 | | | | | $ | (38,455) | | | | | $ | 189,098 | | | | | $ | (58,859) | | | | | $ | 91,820 | | |
Adoption of ASC 606
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 9,690 | | | | | | 9,690 | | |
Retirement of treasury stock
|
| | | | — | | | | | | — | | | | | | 15,002 | | | | | | (15,002) | | | | | | — | | | | | | — | | |
Stock-based compensation expense and vesting of restricted stock units
|
| | | | — | | | | | | — | | | | | | — | | | | | | 7,368 | | | | | | — | | | | | | 7,368 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (23,576) | | | | | | (23,576) | | |
Balance at December 31, 2019
|
| | | | 3,681,185 | | | | | | 36 | | | | | | (23,453) | | | | | | 181,464 | | | | | | (72,745) | | | | | | (85,302) | | |
Stock-based compensation expense and
vesting of restricted stock units |
| | | | — | | | | | | — | | | | | | — | | | | | | 2,988 | | | | | | — | | | | | | 2,988 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (5,271) | | | | | | (5,271) | | |
Balance at December 31, 2020
|
| | | | 3,681,185 | | | | | $ | 36 | | | | | $ | (23,453) | | | | | $ | 184,452 | | | | | $ | (78,016) | | | | | $ | 83,019 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss
|
| | | $ | (5,271) | | | | | $ | (23,576) | | |
Adjustments to reconcile net loss to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation of property and equipment
|
| | | | 1,583 | | | | | | 1,989 | | |
Stock-based compensation
|
| | | | 2,988 | | | | | | 7,368 | | |
Fair value measurement of PSARs liability
|
| | | | 858 | | | | | | — | | |
Gain from settlement of convertible promissory note
|
| | | | (1,454) | | | | | | — | | |
Gain from bargain purchase
|
| | | | — | | | | | | (1,483) | | |
Amortization of other intangible assets
|
| | | | 675 | | | | | | 1,104 | | |
Increase (decrease) in deferred income taxes
|
| | | | 2,621 | | | | | | (438) | | |
(Increase) decrease in licensed programming costs
|
| | | | 5 | | | | | | (411) | | |
Increase in inventory reserve
|
| | | | 171 | | | | | | 102 | | |
Other
|
| | | | 142 | | | | | | 129 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Receivables
|
| | | | (449) | | | | | | 2,224 | | |
Inventories
|
| | | | (209) | | | | | | (71) | | |
Contract assets
|
| | | | (330) | | | | | | 357 | | |
Prepaid expenses and other assets
|
| | | | (1,242) | | | | | | (3,394) | | |
Trademarks and trade name
|
| | | | (721) | | | | | | (556) | | |
Accounts payable
|
| | | | 423 | | | | | | 290 | | |
Payable to related party
|
| | | | (5) | | | | | | (3,256) | | |
Accrued salaries, wages, and employee benefits
|
| | | | 267 | | | | | | (108) | | |
Deferred revenues
|
| | | | 3,360 | | | | | | 22,299 | | |
Other liabilities and accrued expenses
|
| | | | (2,599) | | | | | | 2,519 | | |
Net cash provided by operating activities
|
| | | | 813 | | | | | | 5,088 | | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (884) | | | | | | (4,225) | | |
Stock receivable
|
| | | | (4,445) | | | | | | — | | |
Acquisition of Yandy, LLC, net of cash acquired
|
| | | | — | | | | | | (12,786) | | |
Other investing activities
|
| | | | (141) | | | | | | 24 | | |
Net cash used in investing activities
|
| | | | (5,470) | | | | | | (16,987) | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Net proceeds from issuance of long-term debt
|
| | | | — | | | | | | 11,760 | | |
Repayment of long-term debt
|
| | | | (2,315) | | | | | | (5,627) | | |
Repayment of convertible promissory note
|
| | | | (5,816) | | | | | | — | | |
Payment of deferred offering costs
|
| | | | (262) | | | | | | — | | |
Payment of financing costs
|
| | | | (97) | | | | | | (72) | | |
Net cash (used in) provided by financing activities
|
| | | | (8,490) | | | | | | 6,061 | | |
Net decrease in cash and cash equivalents and restricted cash
|
| | | | (13,147) | | | | | | (5,838) | | |
Balance, beginning of year
|
| | | | 28,707 | | | | | | 34,545 | | |
Balance, end of year
|
| | | $ | 15,560 | | | | | $ | 28,707 | | |
Cash and cash equivalents and restricted cash consist of: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 13,430 | | | | | $ | | | |
Restricted cash
|
| | | | 2,130 | | | | | | 963 | | |
Total
|
| | | $ | 15,560 | | | | | $ | 28,707 | | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 4,896 | | | | | $ | 5,837 | | |
Cash paid for interest
|
| | | $ | 13,559 | | | | | $ | 11,831 | | |
NONCASH FINANCING ACTIVITIES | | | | | | | | | | | | | |
Deferred offering costs in accounts payable
|
| | | $ | 396 | | | | | $ | — | | |
Retirement of treasury stock(1)
|
| | | $ | — | | | | | $ | 15,002 | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
PSARs liability
|
| | | $ | — | | | | | $ | — | | | | | $ | 858 | | | | | $ | 858 | | |
Total liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 858 | | | | | $ | 858 | | |
| | |
December 31, 2020
|
| |||
Beginning balance
|
| | | $ | — | | |
Issuance
|
| | | | 858 | | |
Ending balance
|
| | | $ | 858 | | |
| | |
Year Ended December 31, 2020
|
| |||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to-
Consumer |
| |
Digital
Subscriptions and Content |
| |
Other
|
| |
Total
|
| |||||||||||||||
Trademark Licensing
|
| | | $ | 61,142 | | | | | $ | — | | | | | $ | 2,420 | | | | | $ | — | | | | | $ | 63,562 | | |
Magazine and Digital Subscriptions
|
| | | | — | | | | | | — | | | | | | 8,658 | | | | | | 771 | | | | | | 9,429 | | |
TV and Cable Programming
|
| | | | — | | | | | | — | | | | | | 9,835 | | | | | | 692 | | | | | | 10,527 | | |
Consumer Products
|
| | | | — | | | | | | 64,116 | | | | | | — | | | | | | 28 | | | | | | 64,144 | | |
Total revenues
|
| | | $ | 61,142 | | | | | $ | 64,116 | | | | | $ | 20,913 | | | | | $ | 1,491 | | | | | $ | 147,662 | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to-
Consumer |
| |
Digital
Subscriptions and Content |
| |
Other
|
| |
Total
|
| |||||||||||||||
Trademark Licensing
|
| | | $ | 50,906 | | | | | $ | — | | | | | $ | 2,759 | | | | | $ | — | | | | | $ | 53,665 | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to-
Consumer |
| |
Digital
Subscriptions and Content |
| |
Other
|
| |
Total
|
| |||||||||||||||
Magazine and Digital Subscriptions
|
| | | | — | | | | | | — | | | | | | 7,549 | | | | | | 2,821 | | | | | | 10,370 | | |
TV and Cable Programming
|
| | | | — | | | | | | — | | | | | | 12,935 | | | | | | 377 | | | | | | 13,312 | | |
Consumer Products
|
| | | | — | | | | | | 268 | | | | | | — | | | | | | 495 | | | | | | 763 | | |
Total revenues
|
| | | $ | 50,906 | | | | | $ | 268 | | | | | $ | 23,243 | | | | | $ | 3,693 | | | | | $ | 78,110 | | |
|
| Tangible net assets and liabilities: | | | | | | | |
|
Cash
|
| | | $ | 341 | | |
|
Receivables, net
|
| | | | 368 | | |
|
Inventories
|
| | | | 11,428 | | |
|
Prepaid expenses and other current assets
|
| | | | 212 | | |
|
Property and equipment, net
|
| | | | 149 | | |
|
Other noncurrent assets
|
| | | | 20 | | |
|
Accounts payable
|
| | | | (767) | | |
|
Accrued salaries, wages, and employee benefits
|
| | | | (348) | | |
|
Other current liabilities
|
| | | | (2,722) | | |
|
Deferred revenues
|
| | | | (581) | | |
|
Total net assets
|
| | | | 8,100 | | |
| Intangible assets: | | | | | | | |
|
Trade name
|
| | | | 5,330 | | |
|
Customer list
|
| | | | 1,180 | | |
|
Total intangible assets
|
| | | | 6,510 | | |
|
Net assets acquired
|
| | | | 8,100 | | |
|
Purchase consideration
|
| | | | 13,127 | | |
|
Gain on bargain purchase
|
| | | $ | 8,100 | | |
| | |
Year Ended
December 31, 2019 |
| |||||||||
| | |
As Reported
|
| |
Pro Forma
|
| ||||||
Net revenues
|
| | | $ | 78,110 | | | | | $ | 121,212 | | |
Net loss
|
| | | $ | (23,576) | | | | | $ | (21,178) | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Editorial and other pre-publication costs
|
| | | $ | 298 | | | | | $ | 322 | | |
Merchandise finished goods
|
| | | | 11,490 | | | | | | 11,428 | | |
Total
|
| | | $ | 11,788 | | | | | $ | 11,750 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Prepaid foreign withholding taxes
|
| | | $ | 2,207 | | | | | $ | 1,863 | | |
Prepaid agency fees and commissions
|
| | | | 2,408 | | | | | | 1,702 | | |
Contract assets, current portion
|
| | | | 1,173 | | | | | | 611 | | |
Licensed programming costs
|
| | | | 497 | | | | | | 502 | | |
Other
|
| | | | 2,537 | | | | | | 2,546 | | |
Total
|
| | | $ | 8,822 | | | | | $ | 7,224 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Furniture and fixtures
|
| | | $ | 7,211 | | | | | $ | 6,994 | | |
Leasehold improvements
|
| | | | 3,543 | | | | | | 3,031 | | |
Total property and equipment, gross
|
| | | | 10,754 | | | | | | 10,025 | | |
Less: accumulated depreciation
|
| | | | (5,551) | | | | | | (4,093) | | |
Total
|
| | | $ | 5,203 | | | | | $ | 5,932 | | |
| | |
Weighted-
Average Life (Years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
December 31, 2020 | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution agreements
|
| | | | 15 | | | | | $ | 3,720 | | | | | $ | (2,438) | | | | | $ | 1,282 | | |
Photo and magazine archives
|
| | | | 10 | | | | | | 2,000 | | | | | | (1,967) | | | | | | 33 | | |
Licensing agreements
|
| | | | 9 | | | | | | 5,913 | | | | | | (5,913) | | | | | | — | | |
Customer list
|
| | | | 10 | | | | | | 1,180 | | | | | | (118) | | | | | | 1,062 | | |
Total
|
| | | | | | | | | $ | 12,813 | | | | | $ | (10,436) | | | | | $ | 2,377 | | |
| | |
Weighted-
Average Life (Years) |
| |
Gross
Carrying Amount |
| |
Accumulated
Amortization |
| |
Net
Carrying Amount |
| ||||||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | | | | | | | |
Distribution agreements
|
| | | | 15 | | | | | $ | 3,720 | | | | | $ | (2,191) | | | | | $ | 1,529 | | |
Photo and magazine archives
|
| | | | 10 | | | | | | 2,000 | | | | | | (1,767) | | | | | | 233 | | |
Licensing agreements
|
| | | | 9 | | | | | | 5,913 | | | | | | (5,803) | | | | | | 110 | | |
Customer list
|
| | | | 10 | | | | | | 1,180 | | | | | | — | | | | | | 1,180 | | |
Total
|
| | | | | | | | | $ | 12,813 | | | | | $ | (9,761) | | | | | $ | 3,052 | | |
|
2021
|
| | | $ | 399 | | |
|
2022
|
| | | | 366 | | |
|
2023
|
| | | | 366 | | |
|
2024
|
| | | | 366 | | |
|
2025
|
| | | | 366 | | |
|
Thereafter
|
| | | | 514 | | |
|
Total
|
| | | $ | 2,377 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Accrued interest
|
| | | $ | 3,991 | | | | | $ | 4,207 | | |
Accrued agency fees and commissions
|
| | | | 5,950 | | | | | | 5,821 | | |
Accrued legal settlements
|
| | | | — | | | | | | 5,825 | | |
Other
|
| | | | 8,615 | | | | | | 6,290 | | |
Total
|
| | | $ | 18,556 | | | | | $ | 22,143 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Term loan, due 2023 (as amended)
|
| | | $ | 159,058 | | | | | $ | 161,373 | | |
Convertible promissory notes
|
| | | | 6,230 | | | | | | 13,500 | | |
Total debt
|
| | | | 165,288 | | | | | | 174,873 | | |
Less: unamortized debt issuance costs
|
| | | | (358) | | | | | | (381) | | |
Total debt, net of unamortized debt issuance costs
|
| | | | 164,930 | | | | | | 174,492 | | |
Less: current portion of long-term debt
|
| | | | (10,700) | | | | | | (16,682) | | |
Total debt, net of current portion
|
| | | $ | 154,230 | | | | | $ | 157,810 | | |
|
2021
|
| | | $ | 4,592 | | |
|
2022
|
| | | | 3,758 | | |
|
2023
|
| | | | 150,708 | | |
|
Total
|
| | | $ | 159,058 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Shares available for grant under stock option plan
|
| | | | 294,021 | | | | | | 401,353 | | |
Options issued and outstanding under stock option plan
|
| | | | 463,062 | | | | | | 404,172 | | |
Unvested restricted stock units
|
| | | | 56,036 | | | | | | 87,455 | | |
Vested restricted stock units not issued
|
| | | | 309,050 | | | | | | 229,189 | | |
Convertible promissory note payable to CAA
|
| | | | 51,857 | | | | | | — | | |
Total common stock reserved for future issuance
|
| | | | 1,174,026 | | | | | | 1,122,169 | | |
| | |
Number of
Options |
| |
Weighted-
Average Exercise Price |
| |
Weighted-
Average Remaining Term (years) |
| |
Aggregate
Intrinsic Value (in thousands) |
| ||||||||||||
Balance — December 31, 2019
|
| | | | 404,172 | | | | | $ | 18.73 | | | | | | 9.3 | | | | | $ | 3,795 | | |
Granted
|
| | | | 66,095 | | | | | | 35.88 | | | | | | | | | | | | | | |
Forfeited
|
| | | | (7,205) | | | | | | 18.73 | | | | | | | | | | | | | | |
Balance — December 31, 2020
|
| | | | 463,062 | | | | | $ | 21.18 | | | | | | 8.5 | | | | | $ | 13,791 | | |
Exercisable — December 31, 2020
|
| | | | 309,116 | | | | | $ | 18.97 | | | | | | 8.3 | | | | | $ | 9,889 | | |
| | |
Number of
Awards |
| |
Weighted-
Average Grant Date Fair Value per Share |
| ||||||
Unvested and outstanding balance at December 31, 2019
|
| | | | 87,455 | | | | | $ | 22.09 | | |
Granted
|
| | | | 44,437 | | | | | | 29.86 | | |
Vested
|
| | | | (75,856) | | | | | | 25.18 | | |
Forfeited
|
| | | | — | | | | | | — | | |
Unvested and outstanding balance at December 31, 2020
|
| | | | 56,036 | | | | | $ | 24.07 | | |
| | |
Year Ended December 31,
|
| |||
| | |
2020
|
| |
2019
|
|
Fair value of common stock
|
| |
$28.12 – $48.66
|
| |
$22.09 – $23.34
|
|
Expected term, in years
|
| |
5 – 6.06
|
| |
4.94 – 6.07
|
|
Expected volatility
|
| |
40% – 50%
|
| |
41%
|
|
Risk-free interest rate
|
| |
0.39% – 1.46%
|
| |
1.70% – 2.39%
|
|
Expected dividend yield
|
| |
0%
|
| |
0%
|
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cost of sales
|
| | | $ | 10 | | | | | $ | 18 | | |
Selling and administrative expenses
|
| | | | 2,978 | | | | | | 7,350 | | |
Total
|
| | | $ | 2,988 | | | | | $ | 7,368 | | |
| | |
Year Ended December 31, 2020
|
| |||||||||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to-
Consumer |
| |
Digital
Subscriptions and Content |
| |
Other
|
| |
Corporate
|
| |
Total
|
| ||||||||||||||||||
Cost of sales
|
| | | $ | 48 | | | | | $ | 16 | | | | | $ | 710 | | | | | $ | 248 | | | | | $ | 153 | | | | | $ | 1,175 | | |
Selling and administrative expenses
|
| | | | 76 | | | | | | — | | | | | | — | | | | | | 130 | | | | | | 463 | | | | | | 669 | | |
Total severance costs
|
| | | $ | 124 | | | | | $ | 16 | | | | | $ | 710 | | | | | $ | 378 | | | | | $ | 616 | | | | | $ | 1,844 | | |
| | |
Year Ended December 31, 2019
|
| |||||||||||||||||||||||||||
| | |
Licensing
|
| |
Direct-to-
Consumer |
| |
Digital
Subscriptions and Content |
| |
Corporate
|
| |
Total
|
| |||||||||||||||
Cost of sales
|
| | | $ | — | | | | | $ | — | | | | | $ | 204 | | | | | $ | — | | | | | $ | 204 | | |
Selling and administrative expenses
|
| | | | 59 | | | | | | 681 | | | | | | 108 | | | | | | 132 | | | | | | 980 | | |
Total severance costs
|
| | | $ | 59 | | | | | $ | 681 | | | | | $ | 312 | | | | | $ | 132 | | | | | $ | 1,184 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Rent expense
|
| | | $ | 3,083 | | | | | $ | 3,557 | | |
Sublease income
|
| | | | (280) | | | | | | (274) | | |
Total
|
| | | $ | 2,803 | | | | | $ | 3,283 | | |
Years ending December 31:
|
| |
Minimum
Lease Commitments |
| |
Sublease
Income |
| ||||||
2021
|
| | | $ | 3,433 | | | | | $ | (288) | | |
2022
|
| | | | 3,451 | | | | | | (313) | | |
Years ending December 31:
|
| |
Minimum
Lease Commitments |
| |
Sublease
Income |
| ||||||
2023
|
| | | | 3,564 | | | | | | (322) | | |
2024
|
| | | | 3,828 | | | | | | (246) | | |
2025
|
| | | | 3,588 | | | | | | — | | |
Thereafter
|
| | | | 7,553 | | | | | | — | | |
Total
|
| | | $ | 25,417 | | | | | $ | (1,169) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Current income tax provision: | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | 237 | | | | | | 1 | | |
Foreign
|
| | | | 4,422 | | | | | | 5,495 | | |
Total current income tax provision
|
| | | | 4,659 | | | | | | 5,496 | | |
Deferred income tax provision (benefit): | | | | | | | | | | | | | |
Federal
|
| | | | (567) | | | | | | 570 | | |
State
|
| | | | 2,980 | | | | | | (1,216) | | |
Foreign
|
| | | | — | | | | | | — | | |
Total deferred income tax provision (benefit)
|
| | | | 2,413 | | | | | | (646) | | |
Total
|
| | | $ | 7,072 | | | | | $ | 4,850 | | |
| | |
Year ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State income tax, net of federal benefit
|
| | | | 10.1 | | | | | | 1.3 | | |
Foreign withholding taxes, net of credits(1)
|
| | | | 189.9 | | | | | | (24.1) | | |
Transaction costs
|
| | | | 29.5 | | | | | | — | | |
Change in the statutory rate
|
| | | | 96.3 | | | | | | 4.5 | | |
Change in valuation allowance
|
| | | | (80.8) | | | | | | (1.8) | | |
Adjustment to deferred taxes(2)
|
| | | | 125.4 | | | | | | (25.1) | | |
Other
|
| | | | 1.3 | | | | | | (1.9) | | |
Effective rate
|
| | | | 392.7% | | | | | | (26.1)% | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 45,113 | | | | | $ | 46,477 | | |
Tax credit carryforwards
|
| | | | 2,805 | | | | | | 4,566 | | |
Deferred revenue
|
| | | | 1,312 | | | | | | 520 | | |
Stock compensation
|
| | | | 2,557 | | | | | | 1,628 | | |
Other deductible temporary differences
|
| | | | 16,398 | | | | | | 16,582 | | |
Total deferred tax assets
|
| | | | 68,185 | | | | | | 69,773 | | |
Less valuation allowance
|
| | | | (67,444) | | | | | | (68,899) | | |
Deferred tax assets
|
| | | | 741 | | | | | | 874 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Fixed assets
|
| | | | 219 | | | | | | 171 | | |
Intangible assets
|
| | | | (75,757) | | | | | | (73,225) | | |
Other deductible temporary differences
|
| | | | (112) | | | | | | (108) | | |
Total deferred tax liabilities
|
| | | | (75,650) | | | | | | (73,162) | | |
Deferred tax liabilities, net
|
| | | $ | (74,909) | | | | | $ | (72,288) | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Balance at the beginning of the year
|
| | | $ | 610 | | | | | $ | 8,610 | | |
Increase (decrease) for positions taken in the prior year
|
| | | | — | | | | | | — | | |
Increase (decrease) for positions taken in the current year
|
| | | | — | | | | | | — | | |
Decrease related to settlements with taxing authorities
|
| | | | — | | | | | | — | | |
Decrease from lapse in statute of limitations
|
| | | | — | | | | | | (8,000) | | |
Balance at the end of the year
|
| | | $ | 610 | | | | | $ | 610 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Stock options to purchase common stock
|
| | | | 463,062 | | | | | | 404,172 | | |
Unvested restricted stock units
|
| | | | 56,036 | | | | | | 87,455 | | |
Convertible promissory notes
|
| | | | 122,253 | | | | | | 480,085 | | |
Total
|
| | | | 641,351 | | | | | | 971,712 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Net revenues: | | | | | | | | | | | | | |
Licensing
|
| | | $ | 61,142 | | | | | $ | 50,906 | | |
Direct-to-Consumer
|
| | | | 64,116 | | | | | | 268 | | |
Digital Subscriptions and Content
|
| | | | 20,913 | | | | | | 23,243 | | |
All Other
|
| | | | 1,491 | | | | | | 3,693 | | |
Total
|
| | | $ | 147,662 | | | | | $ | 78,110 | | |
Operating income (loss): | | | | | | | | | | | | | |
Licensing
|
| | | $ | 44,466 | | | | | $ | 35,086 | | |
Direct-to-Consumer
|
| | | | (752) | | | | | | (2,955) | | |
Digital Subscriptions and Content
|
| | | | 9,478 | | | | | | 9,084 | | |
Corporate
|
| | | | (38,462) | | | | | | (39,580) | | |
All Other
|
| | | | (1,118) | | | | | | (7,671) | | |
Total
|
| | | $ | 13,612 | | | | | $ | (6,036) | | |
Depreciation and amortization: | | | | | | | | | | | | | |
Licensing
|
| | | $ | (606) | | | | | $ | (1,295) | | |
Direct-to-Consumer
|
| | | | (402) | | | | | | (347) | | |
Digital Subscriptions and Content
|
| | | | (240) | | | | | | (365) | | |
Corporate
|
| | | | (808) | | | | | | (885) | | |
All Other
|
| | | | (202) | | | | | | (201) | | |
Total
|
| | | $ | (2,258) | | | | | $ | (3,093) | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
China
|
| | | $ | 39,236 | | | | | $ | 31,362 | | |
United States
|
| | | | 76,426 | | | | | | 18,194 | | |
Other
|
| | | | 32,000 | | | | | | 28,554 | | |
Total
|
| | | $ | 147,662 | | | | | $ | 78,110 | | |
| | | | | F-68 | | | |
| CONSOLIDATED FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-69 | | | |
| | | | | F-70 | | | |
| | | | | F-71 | | | |
| | | | | F-72 | | |
| | |
2019
|
| |
2018
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 382,068 | | | | | $ | 338,914 | | |
Other receivable
|
| | | | 367,705 | | | | | | 377,219 | | |
Inventory, net
|
| | | | 8,198,088 | | | | | | 6,509,998 | | |
Other current assets
|
| | | | 221,779 | | | | | | 244,844 | | |
Total current assets
|
| | | | 9,169,640 | | | | | | 7,470,975 | | |
Property, improvements and equipment, net
|
| | | | 149,214 | | | | | | 214,532 | | |
Intangible assets, net
|
| | | | 12,744,250 | | | | | | 15,484,250 | | |
Goodwill, net
|
| | | | — | | | | | | 15,807,801 | | |
Other assets
|
| | | | 21,020 | | | | | | 21,336 | | |
Total Assets
|
| | | $ | 22,084,124 | | | | | $ | 38,998,894 | | |
LIABILITIES AND MEMBERS’ (DEFICIT) CAPITAL | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Current portion of long term debt
|
| | | $ | 18,809,227 | | | | | $ | 11,952,665 | | |
Accounts payable
|
| | | | 766,623 | | | | | | 842,360 | | |
Accrued expenses
|
| | | | 2,779,182 | | | | | | 1,349,970 | | |
Contract liabilities
|
| | | | 1,473,352 | | | | | | 726,035 | | |
Accrued interest
|
| | | | 596,226 | | | | | | — | | |
Total current liabilities
|
| | | | 24,424,610 | | | | | | 14,871,030 | | |
Long-term debt, less current portion
|
| | | | — | | | | | | 6,707,291 | | |
Total liabilities
|
| | | | 24,424,610 | | | | | | 21,578,321 | | |
Members’ (deficit) capital (Note 4) | | | | | | | | | | | | | |
Total members’ (deficit) capital
|
| | | | (2,340,486) | | | | | | 17,420,573 | | |
Total Liabilities and Members’ (Deficit) Capital
|
| | | $ | 22,084,124 | | | | | $ | 38,998,894 | | |
| | |
2019
|
| |
2018
|
| ||||||||||||||||||
Net sales
|
| | | $ | 43,101,855 | | | | | | 100.0% | | | | | $ | 42,427,835 | | | | | | 100.0% | | |
Cost of goods sold
|
| | | | 26,291,726 | | | | | | 61.0 | | | | | | 26,382,482 | | | | | | 62.2 | | |
Gross profit
|
| | | | 16,810,129 | | | | | | 39.0 | | | | | | 16,045,353 | | | | | | 37.8 | | |
Selling, general and administrative expenses
|
| | | | 13,207,388 | | | | | | 30.6 | | | | | | 11,545,871 | | | | | | 27.2 | | |
Impairment loss
|
| | | | 15,807,801 | | | | | | 36.7 | | | | | | — | | | | | | — | | |
Capital restructuring expense
|
| | | | 2,180,444 | | | | | | 5.1 | | | | | | 422,741 | | | | | | 1.0 | | |
Depreciation and amortization
|
| | | | 2,860,470 | | | | | | 6.6 | | | | | | 2,891,556 | | | | | | 6.8 | | |
| | | | | 34,056,103 | | | | | | 79.0 | | | | | | 14,860,168 | | | | | | 35.0 | | |
(Loss) Income from operations
|
| | | | (17,245,974) | | | | | | (40.0) | | | | | | 1,185,185 | | | | | | 2.8 | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Other income
|
| | | | 220,572 | | | | | | 0.5 | | | | | | 251,122 | | | | | | 0.6 | | |
Interest expense, net
|
| | | | (2,735,657) | | | | | | (6.3) | | | | | | (2,387,658) | | | | | | (5.6) | | |
| | | | | (2,515,085) | | | | | | (5.8) | | | | | | (2,136,536) | | | | | | (5.0) | | |
| | | | | (19,761,059) | | | | | | (45.8) | | | | | | (951,351) | | | | | | (2.2) | | |
Members’ (deficit) capital, beginning of period
|
| | | | 17,420,573 | | | | | | | | | | | | 18,371,924 | | | | | | | | |
Members’ (deficit) capital, end of period
|
| | | $ | (2,340,486) | | | | | | | | | | | $ | 17,420,573 | | | | | | | | |
| | |
2019
|
| |
2018
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (19,761,059) | | | | | $ | (951,351) | | |
Adjustments to reconcile net loss to net cash from operating activities:
|
| | | | | | | | | | | | |
Depreciation
|
| | | | 120,470 | | | | | | 132,556 | | |
Amortization of intangible assets
|
| | | | 2,740,000 | | | | | | 2,759,000 | | |
Impairment of goodwill
|
| | | | 15,807,801 | | | | | | — | | |
Amortization of deferred financing costs
|
| | | | 96,375 | | | | | | 128,500 | | |
Loss on asset disposal
|
| | | | 3,704 | | | | | | — | | |
Payment in kind interest on seller note
|
| | | | 552,896 | | | | | | 510,791 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Other receivable
|
| | | | 9,514 | | | | | | 95,830 | | |
Inventory
|
| | | | (1,688,090) | | | | | | 429,707 | | |
Other assets
|
| | | | 23,381 | | | | | | 162,828 | | |
Accounts payable
|
| | | | (75,737) | | | | | | (162,349) | | |
Accrued expenses
|
| | | | 1,429,212 | | | | | | (166,067) | | |
Accrued interest
|
| | | | 596,226 | | | | | | — | | |
Contract liabilities
|
| | | | 747,317 | | | | | | (60,682) | | |
Net cash from operating activities
|
| | | | 602,010 | | | | | | 2,878,764 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Acquisition of property, improvements and equipment
|
| | | | (62,856) | | | | | | (109,216) | | |
Cash proceeds from disposal of fixed assets
|
| | | | 4,000 | | | | | | — | | |
Net cash from investing activities
|
| | | | (58,856) | | | | | | (109,216) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Principal payments on long-term debt
|
| | | | (500,000) | | | | | | (3,212,437) | | |
Net cash from financing activities
|
| | | | (500,000) | | | | | | (3,212,437) | | |
Net change in cash & cash equivalents
|
| | | | 43,154 | | | | | | (442,889) | | |
Cash & cash equivalents at beginning of period
|
| | | | 338,914 | | | | | | 781,803 | | |
Cash & cash equivalents at end of period
|
| | | $ | 382,068 | | | | | $ | 338,914 | | |
Supplemental cash flow information: | | | | | | | | | | | | | |
Cash paid during the year for:
|
| | | | | | | | | | | | |
Interest
|
| | | $ | 1,488,679 | | | | | $ | 1,748,367 | | |
| | |
2019
|
| |
2018
|
| ||||||
Machinery and equipment
|
| | | $ | 307,847 | | | | | $ | 329,950 | | |
Computer equipment
|
| | | | 223,532 | | | | | | 211,067 | | |
Furniture and fixtures
|
| | | | 49,983 | | | | | | 48,608 | | |
Leasehold improvement
|
| | | | 246,867 | | | | | | 201,539 | | |
| | | | | 828,229 | | | | | | 791,164 | | |
Less accumulated depreciation and amortization
|
| | | | (679,015) | | | | | | (576,632) | | |
| | | | $ | 149,214 | | | | | $ | 214,532 | | |
| | |
Cost
|
| |
Accumulated
Amortization |
| |
Net Book Value
|
| |||||||||
December 31, 2019 | | | | | | | | | | | | | | | | | | | |
Non-Compete (5 years)
|
| | | $ | 380,000 | | | | | $ | (380,000) | | | | | $ | — | | |
Customer list (10 years)
|
| | | | 12,450,000 | | | | | | (6,536,250) | | | | | | 5,913,750 | | |
Trademark (10 years)
|
| | | | 14,380,000 | | | | | | (7,549,500) | | | | | | 6,830,500 | | |
| | | | $ | 27,210,000 | | | | | $ | (14,465,750) | | | | | $ | 12,744,250 | | |
December 31, 2018 | | | | | | | | | | | | | | | | | | | |
Non-Compete (5 years)
|
| | | $ | 380,000 | | | | | $ | (323,000) | | | | | $ | 57,000 | | |
Customer list (10 years)
|
| | | | 12,450,000 | | | | | | (5,291,250) | | | | | | 7,158,750 | | |
Trademark (10 years)
|
| | | | 14,380,000 | | | | | | (6,111,500) | | | | | | 8,268,500 | | |
| | | | $ | 27,210,000 | | | | | $ | (11,725,750) | | | | | $ | 15,484,250 | | |
| | |
2019
|
| |
2018
|
| ||||||
Goodwill
|
| | | $ | 15,807,801 | | | | | $ | 15,807,801 | | |
| | |
2019
|
| |
2018
|
| ||||||
Accumulated Impairment
|
| | | | (15,807,801) | | | | | | — | | |
| | | | $ | — | | | | | $ | 15,807,801 | | |
|
| | |
As Reported
|
| |
Adjustments due to
change in accounting principle |
| |
Balance at
January 1, 2018 |
| |||||||||
Balance Sheet | | | | | | | | | | | | | | | | | | | |
Goodwill, net
|
| | | $ | 10,670,264 | | | | | $ | 5,137,537 | | | | | $ | 15,807,801 | | |
Members’ capital
|
| | | | 13,234,387 | | | | | | 5,137,537 | | | | | | 18,371,924 | | |
| | |
2019
|
| |
2018
|
| ||||||
Term loan
|
| | | $ | 11,549,040 | | | | | $ | 12,049,040 | | |
Seller note
|
| | | | 7,260,187 | | | | | | 6,707,291 | | |
| | | | | 18,809,227 | | | | | | 18,756,331 | | |
Less debt issuance costs
|
| | | | — | | | | | | (96,375) | | |
| | | | | 18,809,227 | | | | | | 18,659,956 | | |
Less current maturities
|
| | | | (18,809,227) | | | | | | (11,952,665) | | |
Total debt, net of current portion
|
| | | $ | — | | | | | $ | 6,707,291 | | |
| | |
Term Loan
|
| |
Seller Note
|
| |
Total
|
| |||||||||
2020
|
| | | | 11,549,040 | | | | | | 7,260,187 | | | | | | 18,809,227 | | |
| | | | $ | 11,549,040 | | | | | $ | 7,260,187 | | | | | $ | 18,809,227 | | |
|
2020
|
| | | $ | 352,497 | | |
| | | | | $ | 352,497 | | |
| | |
Page
|
| |||
| | | | F-80 | | | |
| | | | F-81 | | | |
| | | | F-82 | | | |
| | | | F-83 | | | |
| | | | F-84 | | | |
| | | | F-85 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 57,732 | | | | | $ | — | | |
Prepaid expenses
|
| | | | 34,334 | | | | | | — | | |
Total Current Assets
|
| | | | 92,066 | | | | | | — | | |
Deferred offering costs
|
| | | | — | | | | | | 100,231 | | |
Cash and marketable securities held in Trust Account
|
| | | | 58,679,991 | | | | | | — | | |
TOTAL ASSETS
|
| | | $ | 58,772,057 | | | | | $ | 100,231 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 756,770 | | | | | $ | 225 | | |
Promissory note – related party
|
| | | | — | | | | | | 100,498 | | |
Total Current Liabilities
|
| | | | 756,770 | | | | | | 103,723 | | |
Deferred underwriting fee payable
|
| | | | 2,012,430 | | | | | | — | | |
TOTAL LIABILITIES
|
| | | | 2,769,200 | | | | | | 100,723 | | |
Commitments | | | | | | | | | | | | | |
Common stock subject to possible redemption, 5,002,149 shares at redemption value
|
| | | | 51,002,849 | | | | | | — | | |
Stockholders’ Equity (Deficit) | | | | | | | | | | | | | |
Common stock, $0.0001 par value; 30,000,000 shares authorized; 2,540,342 and 1,437,500 shares issued and outstanding (excluding 5,002,149 and no shares subject to possible redemption) at December 31, 2020 and 2019, respectively(1)
|
| | | | 254 | | | | | | 144 | | |
Additional paid-in capital
|
| | | | 6,062,048 | | | | | | 24,856 | | |
Stock subscription receivable
|
| | | | — | | | | | | (25,000) | | |
Accumulated deficit
|
| | | | (1,062,294) | | | | | | (492) | | |
Total Stockholders’ Equity (Deficit)
|
| | | | 5,000,008 | | | | | | (492) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | $ | 58,772,057 | | | | | $ | 100,231 | | |
| | |
Year Ended
December 31, 2020 |
| |
For the
Period from November 12, 2019 (Inception) Through December 31, 2019 |
| ||||||
Formation and operational costs
|
| | | $ | 1,093,833 | | | | | $ | 492 | | |
Loss from operations
|
| | | | (1,093,833) | | | | | | (492) | | |
Other income: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 31,669 | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | 362 | | | | | | — | | |
Other income
|
| | | | 32,031 | | | | | | — | | |
Loss before provision for income taxes
|
| | | | (1,061,802) | | | | | | (492) | | |
Net loss
|
| | | $ | (1,061,802) | | | | | $ | (492) | | |
Basic and diluted weighted average shares outstanding, Common stock subject
to possible redemption |
| | | | 5,061,856 | | | | | | — | | |
Basic and diluted net income per share, Common stock subject to possible redemption
|
| | | $ | 0.00 | | | | | $ | 0.00 | | |
Weighted average shares outstanding, basic and diluted
|
| | | | 1,912,761 | | | | | | 1,250,000 | | |
Basic and diluted net loss per common share
|
| | | $ | (0.56) | | | | | $ | (0.00) | | |
| | |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Stock
Subscription Receivable |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance — January 1, 2020
|
| | | | 1,437,500 | | | | | | 144 | | | | | | 24,856 | | | | | | (25,000) | | | | | | (492) | | | | | | (492) | | |
Collection of stock subscription receivable
|
| | | | — | | | | | | — | | | | | | — | | | | | | (25,000) | | | | | | — | | | | | | 25,000 | | |
Sale of 5,749,800 Units, net of underwriting discount and offering expenses
|
| | | | 5,749,800 | | | | | | 575 | | | | | | 53,487,066 | | | | | | — | | | | | | — | | | | | | 53,487,641 | | |
Sale of 355,241 Private Units
|
| | | | 355,241 | | | | | | 35 | | | | | | 3,552,375 | | | | | | — | | | | | | — | | | | | | 3,552,410 | | |
Forfeiture of Insider Shares
|
| | | | (50) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Sale of unit purchase option
|
| | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | — | | | | | | 100 | | |
Common stock subject to possible redemption
|
| | | | (5,002,149) | | | | | | (500) | | | | | | (51,002,349) | | | | | | — | | | | | | — | | | | | | (51,002,849) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,061,802) | | | | | | (1,061,802) | | |
Balance — December 31, 2020
|
| | | | 2,540,342 | | | | | | 254 | | | | | | 6,062,048 | | | | | | — | | | | | | (1,062,294) | | | | | | 5,000,008 | | |
| | |
Common Stock
|
| |
Additional
Paid in Capital |
| |
Stock
Subscription Receivable |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance — November 12, 2019 (inception)
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of common stock to Sponsor(1)
|
| | | | 1,437,500 | | | | | | 144 | | | | | | 24,856 | | | | | | (25,000) | | | | | | — | | | | | | — | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (492) | | | | | | (492) | | |
Balance — December 31, 2019
|
| | | | 1,437,500 | | | | | | 144 | | | | | | 24,856 | | | | | | (25,000) | | | | | | (492) | | | | | | (492) | | |
| | |
Year Ended
December 31, 2020 |
| |
For the Period
from November 12, 2019 (Inception) Through December 31, 2019 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (1,061,802) | | | | | $ | (492) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (31,669) | | | | | | — | | |
Unrealized gain on marketable securities held in Trust Account
|
| | | | (362) | | | | | | — | | |
Formation costs paid by Sponsor
|
| | | | — | | | | | | 267 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | (34,334) | | | | | | — | | |
Accrued expenses
|
| | | | 756,545 | | | | | | — | | |
Income taxes payable
|
| | | | — | | | | | | 225 | | |
Net cash used in operating activities
|
| | | | (371,622) | | | | | | — | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | (58,647,960) | | | | | | — | | |
Net cash used in investing activities
|
| | | | (58,647,960) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from collection of stock subscription receivable
|
| | | | 25,000 | | | | | | — | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | 56,060,550 | | | | | | — | | |
Proceeds from sale of Private Units
|
| | | | 3,552,410 | | | | | | — | | |
Proceeds from sale of unit purchase option
|
| | | | 100 | | | | | | — | | |
Proceeds from promissory note — related party
|
| | | | 157,206 | | | | | | — | | |
Repayment of promissory note — related party
|
| | | | (257,704 | | | | | | — | | |
Payment of offering costs
|
| | | | (460,248) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 59,077,314 | | | | | | — | | |
Net Change in Cash
|
| | | | 57,732 | | | | | | — | | |
Cash — Beginning of period
|
| | | | — | | | | | | — | | |
Cash — End of period
|
| | | $ | 57,732 | | | | | $ | — | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption
|
| | | $ | 52,064,441 | | | | | $ | — | | |
Change in value of common stock subject to possible redemption
|
| | | $ | (1,061,592) | | | | | $ | — | | |
Deferred underwriting fee payable
|
| | | | 2,012,430 | | | | | | — | | |
Issuance of common stock for stock subscription receivable
|
| | | $ | — | | | | | $ | 25,000 | | |
Offering costs paid through promissory notes
|
| | | | — | | | | | | 100,231 | | |
| | |
Year Ended
December 31, |
| |
For the
Period from November 12, 2019 (Inception) Through December 31, |
| ||||||
| | |
2020
|
| |
2019
|
| ||||||
Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Earnings allocable to Redeemable Common Stock
|
| | | | | | | | | | | | |
Interest Income
|
| | | $ | 27,904 | | | | | $ | — | | |
Unrealized Gain on Marketable Securities
|
| | | | 319 | | | | | | — | | |
Income Tax, Franchise Tax, and Regulatory Compliance Fees
|
| | | | (28,233) | | | | | | — | | |
Net Earnings
|
| | | $ | — | | | | | | — | | |
Denominator: Weighted Average Redeemable Common Stock
|
| | | | | | | | | | | | |
Redeemable Common Stock, Basic and Diluted
|
| | | | 5,061,856 | | | | | | — | | |
Earnings/Basic and Diluted Redeemable Common Stock
|
| | | $ | 0.00 | | | | | $ | 0.00 | | |
Non-Redeemable Common Stock | | | | | | | | | | | | | |
Numerator: Net (Loss) Income minus Redeemable Net Earnings
|
| | | | | | | | | | | | |
Net (Loss) Income
|
| | | $ | (1,061,802) | | | | | $ | (492) | | |
Less: Redeemable Net Earnings
|
| | | | — | | | | | | — | | |
Non-Redeemable Net Loss
|
| | | $ | (1,061,802) | | | | | $ | (492) | | |
Denominator: Weighted Average Non-Redeemable Common Stock
|
| | | | | | | | | | | | |
Non-Redeemable Common Stock, Basic and Diluted
|
| | | | 1,912,761 | | | | | | 1,250,000 | | |
Loss/Basic and Diluted Non-Redeemable Common Stock
|
| | | $ | (0.56) | | | | | $ | 0.00 | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward
|
| | | $ | 49,154 | | | | | $ | — | | |
Unrealized gain on marketable securities
|
| | | | (6,726) | | | | | | — | | |
Total deferred tax assets
|
| | | | 42,428 | | | | | | — | | |
Valuation Allowance
|
| | | | (42,428) | | | | | | — | | |
Deferred tax assets
|
| | | $ | — | | | | | $ | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Federal | | | | | | | | | | | | | |
Current
|
| | | $ | — | | | | | $ | — | | |
Deferred
|
| | | | (42,428) | | | | | | — | | |
State and Local | | | | | | | | | | | | | |
Current
|
| | | | — | | | | | | — | | |
Deferred
|
| | | | — | | | | | | — | | |
Change in valuation allowance
|
| | | | (42,428) | | | | | | — | | |
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Income tax provision
|
| | | $ | — | | | | | $ | — | | |
|
| | |
December 31,
2020 |
| |
December 31,
2019 |
| ||||||
Statutory federal income tax rate
|
| | | | 21.0% | | | | | | 21.0% | | |
State taxes, net of federal tax benefit
|
| | | | 0.0% | | | | | | 0.0% | | |
Business combination expenses
|
| | | | (17.1)% | | | | | | 0.0% | | |
Meals and entertainment
|
| | | | 0.0% | | | | | | 0.3% | | |
Valuation allowance
|
| | | | (3.9)% | | | | | | 0.0% | | |
Income tax provision
|
| | | | 0.0% | | | | | | 21.3% | | |
Description
|
| |
Level
|
| |
December 31,
2020 |
| |
December 31,
2019 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 58,679,991 | | | | | $ | 0 | | |