Delaware (State or other jurisdiction of incorporation or organization) | 84-2529722 (I.R.S. Employer Identification Number) | |||||||
3601 South Congress Avenue, Building E Austin, Texas 78704 (Address of principal executive offices and zip code) (737) 787-1955 (Registrant's telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act: | |||||||||
Title of each class | |||||||||
Common stock, par value $0.00005 | Trading Symbol FXLV | New York Stock Exchange |
Large accelerated filer | Accelerated filer | |||||||||||||||
Non-accelerated filer | ý | Smaller reporting company | ||||||||||||||
Emerging growth company |
Part I. | Financial Information | Page | ||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II. | Other Information | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. |
March 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 13,992 | $ | 42,004 | |||||||
Accounts receivable, net | 45,200 | 27,788 | |||||||||
Due from related parties | 2,739 | 2,442 | |||||||||
Inventories | 16,622 | 12,300 | |||||||||
Deferred costs | 2,021 | 1,887 | |||||||||
Prepaid expenses | 32,724 | 12,706 | |||||||||
Other current assets | 18,442 | 9,515 | |||||||||
Total current assets | 131,740 | 108,642 | |||||||||
Property and equipment, net | 8,870 | 5,645 | |||||||||
Deferred tax assets, net | 22,755 | 22,716 | |||||||||
Goodwill | 4,614 | 4,614 | |||||||||
Intangible assets, net | 28,921 | 28,446 | |||||||||
Deferred costs, net of current | 12,476 | 11,871 | |||||||||
Other long-term assets | 27,246 | 21,960 | |||||||||
Total assets | $ | 236,622 | $ | 203,894 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 38,519 | $ | 36,594 | |||||||
Deferred revenue | 10,452 | 7,137 | |||||||||
Interest payable | 174 | 276 | |||||||||
Income taxes payable | 12,144 | 9,624 | |||||||||
Total current liabilities | 61,289 | 53,631 | |||||||||
Deferred revenue, net of current | 3,865 | 7,385 | |||||||||
Long-term debt, net of current | 31,600 | — | |||||||||
Other long-term liabilities | 13,717 | 12,605 | |||||||||
Total liabilities | 110,471 | 73,621 | |||||||||
Commitments and contingencies (Note 13) | 0 | 0 | |||||||||
Stockholders’ equity | |||||||||||
Common stock, $0.00005 par value; 95,682,833 and 95,806,063 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 6 | 5 | |||||||||
Additional paid-in capital | 655,405 | 662,946 | |||||||||
Accumulated other comprehensive income | 1,509 | 603 | |||||||||
Accumulated deficit | (356,049) | (358,561) | |||||||||
Less: Treasury stock | (174,720) | (174,720) | |||||||||
Total stockholders' equity | 126,151 | 130,273 | |||||||||
Total liabilities and stockholders' equity | $ | 236,622 | $ | 203,894 | |||||||
September 30, 2021 | December 31, 2020 | |||||||
(unaudited) | (audited) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 52,618 | $ | 28,967 | ||||
Accounts receivable, net | 15,326 | 9,582 | ||||||
Due from related parties | 2,150 | 2,406 | ||||||
Inventories | 17,252 | 4,485 | ||||||
Deferred costs | 1,851 | 1,616 | ||||||
Prepaid expenses | 10,653 | 2,891 | ||||||
Other current assets | 5,209 | 2,452 | ||||||
Total current assets | 105,059 | 52,399 | ||||||
Property and equipment, net | 2,014 | 884 | ||||||
Deferred tax assets, net | 6,703 | 7,096 | ||||||
Intangible assets, net | 25,598 | 1,758 | ||||||
Deferred costs, net of current | 13,081 | 11,215 | ||||||
Other long-term assets | 14,166 | 5,165 | ||||||
Total assets | $ | 166,621 | $ | 78,517 | ||||
Liabilities, convertible preferred stock and stockholders’ equity (deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 34,461 | $ | 18,657 | ||||
Deferred revenue | 8,787 | 3,783 | ||||||
Interest payable | 143 | 250 | ||||||
Current portion of long-term debt | — | 5,847 | ||||||
Income taxes payable | 1,792 | 3,499 | ||||||
Total current liabilities | 45,183 | 32,036 | ||||||
Deferred revenue, net of current | 5,908 | 10,312 | ||||||
Long-term derivative liability | — | 36,640 | ||||||
Long-term debt, net of current | — | 236,186 | ||||||
Other long-term liabilities | 4,615 | 4,890 | ||||||
Total liabilities | 55,706 | 320,064 | ||||||
Commitments and contingencies (Note 12) | 0 | 0 | ||||||
Convertible preferred stock, $0.0001 par value; 0 and 9,854,432 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively (Note 13) | — | 98,544 | ||||||
Stockholders’ equity (deficit) | ||||||||
Common stock, $0.00005 par value; 90,554,571 and 29,281,514 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 4 | 1 | ||||||
Additional paid-in capital | 659,977 | 11,456 | ||||||
Accumulated other comprehensive loss | (938 | ) | (982 | ) | ||||
Accumulated deficit | (373,408 | ) | (175,846 | ) | ||||
Less: Treasury stock | (174,720 | ) | (174,720 | ) | ||||
Total stockholders’ equity (deficit) | 110,915 | (340,091 | ) | |||||
Total liabilities, convertible preferred stock and stockholders’ equity (deficit) | $ | 166,621 | $ | 78,517 | ||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Revenues: | |||||||||||||||||
Franchise (Related party: $2,616 and $45 for the three months ended March 31, 2022 and 2021, respectively) | $ | 19,860 | $ | 13,156 | |||||||||||||
Equipment and merchandise (Related party: $7 and $0 for the three months ended March 31, 2022 and 2021, respectively) | 30,148 | 5,035 | |||||||||||||||
Total revenues | 50,008 | 18,191 | |||||||||||||||
Costs and operating expenses: | |||||||||||||||||
Cost of franchise revenue | 1,231 | 1,214 | |||||||||||||||
Cost of equipment and merchandise (Related party: $3,286 and $941 for the three months ended March 31, 2022 and 2021, respectively) | 10,943 | 3,181 | |||||||||||||||
Selling, general and administrative expenses | 32,090 | 16,828 | |||||||||||||||
Total costs and operating expenses | 44,264 | 21,223 | |||||||||||||||
Income (loss) from operations | 5,744 | (3,032) | |||||||||||||||
Loss on derivative liabilities, net | — | 25,505 | |||||||||||||||
Interest expense, net | 126 | 8,415 | |||||||||||||||
Other expense, net | 570 | 291 | |||||||||||||||
Income (loss) before income taxes | 5,048 | (37,243) | |||||||||||||||
Provision (benefit) for income taxes | 2,536 | (398) | |||||||||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) | |||||||||||||
Other comprehensive income (loss) | |||||||||||||||||
Unrealized gain on interest rate swap, net of tax | — | 71 | |||||||||||||||
Foreign currency translation adjustment, net of tax | 906 | (32) | |||||||||||||||
Comprehensive income (loss) | $ | 3,418 | $ | (36,806) | |||||||||||||
Earnings (loss) per share | |||||||||||||||||
Basic | $ | 0.03 | $ | (1.26) | |||||||||||||
Diluted | $ | 0.03 | $ | (1.26) | |||||||||||||
Shares used in computing earnings per share | |||||||||||||||||
Basic | 95,709,671 | 29,281,514 | |||||||||||||||
Diluted | 96,687,283 | 29,281,514 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Franchise (Related party: $2,724 and $52 for the three months ended September 30, 2021 and 2020, respectively, and $3,329 and $277 for the nine months ended September 30, 2021 and 2020, respectively) | $ | 18,513 | $ | 14,067 | $ | 52,250 | $ | 39,766 | ||||||||
Equipment and merchandise (Related party: $0 and $0 for the three months ended September 30, 2021 and 2020, respectively, and $0 and $328 for the nine months ended September 30, 2021 and 2020, respectively) | 8,664 | 7,896 | 19,950 | 24,497 | ||||||||||||
Total revenues | 27,177 | 21,963 | 72,200 | 64,263 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of franchise revenue (Related party: $0 and $0 for the three months ended September 30, 2021 and 2020, respectively, and $0 and $12 for the nine months ended September 30, 2021 and 2020, respectively) | 1,486 | 1,997 | 4,162 | 6,591 | ||||||||||||
Cost of equipment and merchandise (Related party: $1,561 and $355 for the three months ended September 30, 2021 and 2020, respectively, and $3,678 and $1,098 for the nine months ended September 30, 2021 and 2020, respectively) | 5,752 | 5,247 | 12,672 | 14,410 | ||||||||||||
Selling, general and administrative expenses | 110,492 | 10,100 | 145,882 | 31,724 | ||||||||||||
Total costs and operating expenses | 117,730 | 17,344 | 162,716 | 52,725 | ||||||||||||
(Loss) income from operations | (90,553 | ) | 4,619 | (90,516 | ) | 11,538 | ||||||||||
Loss on derivative liabilities | — | — | 48,603 | — | ||||||||||||
Interest expense, net | 41,897 | 534 | 59,165 | 1,333 | ||||||||||||
Other income, net | (2,035 | ) | (238 | ) | (1,415 | ) | (815 | ) | ||||||||
(Loss) income before income taxes | (130,415 | ) | 4,323 | (196,869 | ) | 11,020 | ||||||||||
(Benefit) provision for income taxes | (222 | ) | 1,974 | 693 | 3,536 | |||||||||||
Net (loss) income | $ | (130,193 | ) | $ | 2,349 | $ | (197,562 | ) | $ | 7,484 | ||||||
Other comprehensive (loss) income | ||||||||||||||||
Unrealized (loss) gain on interest rate swap, net of tax | (7 | ) | 88 | 196 | (639 | ) | ||||||||||
Reclassification to interest expense from interest rate swaps | 464 | — | 464 | — | ||||||||||||
Foreign currency translation adjustment, net of tax | (509 | ) | 138 | (616 | ) | (426 | ) | |||||||||
Comprehensive (loss) income | $ | (130,245 | ) | $ | 2,575 | $ | (197,518 | ) | $ | 6,419 | ||||||
Per share data: | ||||||||||||||||
Net (loss) income per common share | ||||||||||||||||
Basic and diluted | (1.52 | ) | 0.03 | (4.10 | ) | 0.09 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic and diluted | 85,463,755 | 58,000,000 | 48,214,724 | 58,000,000 |
Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2021 | — | $ | — | 95,806,063 | $ | 5 | $ | 662,946 | $ | (174,720) | $ | 603 | $ | (358,561) | $ | 130,273 | |||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 487 | — | — | — | 487 | ||||||||||||||||||||||||||||||||||||||||||||
Vested restricted stock awards | — | — | 7,739 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Vested restricted stock units to be issued in association with promotional agreement | — | — | 914,692 | 1 | 2,963 | — | — | — | 2,964 | ||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of equity awards | — | — | (1,045,661) | — | (10,991) | — | — | — | (10,991) | ||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 2,512 | 2,512 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | 906 | — | 906 | ||||||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2022 | — | $ | — | 95,682,833 | $ | 6 | $ | 655,405 | $ | (174,720) | $ | 1,509 | $ | (356,049) | $ | 126,151 |
Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated other comprehensive loss | Accumulated deficit | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720 | ) | $ | (886 | ) | $ | (243,215 | ) | $ | (407,364 | ) | ||||||||||||||||
Conversion of convertible preferred stock into common stock upon initial public offering | (9,854,432 | ) | (98,544 | ) | 27,368,102 | 1 | 98,543 | — | — | — | 98,544 | |||||||||||||||||||||||||
Conversion of convertible notes into common stock upon initial public offering | — | — | 14,847,066 | 1 | 191,517 | — | — | — | 191,518 | |||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 80,707 | — | — | — | 80,707 | |||||||||||||||||||||||||||
Issuance of common stock pursuant to initial public offering, net of underwriting commissions and discounts and offering costs of $5.8 million | — | — | 19,057,889 | 1 | 277,754 | — | — | — | 277,755 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (130,193 | ) | (130,193 | ) | |||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax | — | — | — | — | — | — | (7 | ) | — | (7 | ) | |||||||||||||||||||||||||
Reclassification to interest expense from interest rate swap | — | — | — | — | — | — | 464 | — | 464 | |||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (509 | ) | — | (509 | ) | |||||||||||||||||||||||||
Balances at September 30, 2021 | 0 | $ | 0— | 90,554,571 | $ | 4 | $ | 659,977 | $ | (174,720 | ) | $ | (938 | ) | $ | (373,408 | ) | $ | 110,915 | |||||||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid- In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Deficit | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
Balances as of December 31, 2020 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720) | $ | (982) | $ | (175,846) | $ | (340,091) | |||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (36,845) | (36,845) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax | — | — | — | — | — | — | 71 | — | 71 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (32) | — | (32) | ||||||||||||||||||||||||||||||||||||||||||||
Balances as of March 31, 2021 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720) | $ | (943) | $ | (212,691) | $ | (376,897) |
Convertible Preferred Stock | Common Stock | Additional Paid- In Capital | Treasury Stock | Accumulated other comprehensive loss | Accumulated deficit | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (1,832 | ) | $ | (145,422 | ) | $ | (147,251 | ) | |||||||||||||||||
Net income | — | — | — | — | — | — | — | 2,349 | 2,349 | |||||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of tax | — | — | — | — | — | — | 88 | — | 88 | |||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | 138 | — | 138 | |||||||||||||||||||||||||||
Balances at September 30, 2020 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (1,606 | ) | $ | (143,073 | ) | $ | (144,676 | ) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||||||||||||
Depreciation | 286 | 71 | |||||||||||||||
Amortization of intangible assets | 888 | 133 | |||||||||||||||
Amortization of deferred costs | 626 | 448 | |||||||||||||||
Accretion and write-off of debt discount | — | 1,376 | |||||||||||||||
Bad debt expense | 1,464 | 1,666 | |||||||||||||||
Stock-based compensation | 2,073 | — | |||||||||||||||
Deferred income taxes | — | 361 | |||||||||||||||
In-kind marketing | 57 | — | |||||||||||||||
Loss on derivative liabilities, net | — | 25,505 | |||||||||||||||
Provision for inventories | (52) | — | |||||||||||||||
Paid-in-kind interest accrual | — | 6,300 | |||||||||||||||
Unrealized foreign currency transaction gains | 381 | 151 | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Due from related parties | (294) | 1,084 | |||||||||||||||
Accounts receivable, net | (16,413) | (5,306) | |||||||||||||||
Inventories | (4,160) | (3,495) | |||||||||||||||
Prepaid expenses | (20,085) | 292 | |||||||||||||||
Other current assets | (12,498) | (1,021) | |||||||||||||||
Deferred costs | (1,194) | (668) | |||||||||||||||
Other long-term assets | (8,068) | (1,594) | |||||||||||||||
Accounts payable and accrued expenses | 1,963 | 6,891 | |||||||||||||||
Deferred revenue | 3,527 | 3,654 | |||||||||||||||
Interest payable | (104) | (39) | |||||||||||||||
Income taxes payable | 3,149 | (432) | |||||||||||||||
Other long-term liabilities | 952 | 1,267 | |||||||||||||||
Net cash used in operating activities | (44,990) | (201) | |||||||||||||||
Cash flows from investing activities | |||||||||||||||||
Purchases of property and equipment | (2,117) | (67) | |||||||||||||||
Purchases of intangible assets | (1,296) | (112) | |||||||||||||||
Net cash used in investing activities | (3,413) | (179) | |||||||||||||||
Cash flows from financing activities | |||||||||||||||||
Borrowings under revolving facility | 31,600 | — | |||||||||||||||
Repayments under term facility | — | (1,313) | |||||||||||||||
Taxes paid related to net share settlement of equity awards | (10,991) | — | |||||||||||||||
Net cash provided by (used in) financing activities | $ | 20,609 | $ | (1,313) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (218) | (384) | |||||||||||||||
Net decrease in cash and cash equivalents | (28,012) | (2,077) | |||||||||||||||
Cash and cash equivalents at beginning of period | 42,004 | 28,967 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 13,992 | $ | 26,890 | |||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated other comprehensive loss | Accumulated deficit | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720 | ) | $ | (982 | ) | $ | (175,846 | ) | $ | (340,091 | ) | ||||||||||||||||
Conversion of convertible preferred stock into common stock upon initial public offering | (9,854,432 | ) | (98,544 | ) | 27,368,102 | 1 | 98,543 | — | — | — | 98,544 | |||||||||||||||||||||||||
Conversion of convertible notes into common stock upon initial public offering | — | — | 14,847,066 | 1 | 191,517 | — | — | — | 191,518 | |||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 80,707 | — | — | — | 80,707 | |||||||||||||||||||||||||||
Issuance of common stock pursuant to initial public offering, net of underwriting commissions and discounts and offering costs of $5.8 million | — | — | 19,057,889 | 1 | 277,754 | — | — | — | 277,755 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (197,562 | ) | (197,562 | ) | |||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of tax | — | — | — | — | — | — | 196 | — | 196 | |||||||||||||||||||||||||||
Reclassification to interest expense from interest rate swap | — | — | — | — | — | — | 464 | — | 464 | |||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (616 | ) | — | (616 | ) | |||||||||||||||||||||||||
Balances at September 30, 2021 | — | $ | — | 90,554,571 | $ | 4 | $ | 659,977 | $ | (174,720 | ) | $ | (938 | ) | $ | (373,408 | ) | $ | 110,915 | |||||||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid- In Capital | Treasury Stock | Accumulated other comprehensive loss | Accumulated deficit | Total Stockholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (541 | ) | $ | (150,557 | ) | $ | (151,095 | ) | |||||||||||||||||
Net income | — | — | — | — | — | — | — | 7,484 | 7,484 | |||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax | — | — | — | — | — | — | (639 | ) | — | (639 | ) | |||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (426 | ) | — | (426 | ) | |||||||||||||||||||||||||
Balances at September 30, 2020 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (1,606 | ) | $ | (143,073 | ) | $ | (144,676 | ) | |||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | ||||||||||||||||
Supplemental disclosures of cash flow information: | |||||||||||||||||
Income taxes paid | $ | 222 | $ | — | |||||||||||||
Interest paid | 68 | 601 | |||||||||||||||
Supplemental disclosure of noncash financing and investing activities: | |||||||||||||||||
Property and equipment included in accounts payable and accrued expenses | $ | 1,008 | $ | — | |||||||||||||
Intangible assets included in accounts payable and accrued expenses | 184 | — | |||||||||||||||
Deferred offering costs included in accounts payable and accrued expenses | — | 194 |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | (197,562 | ) | $ | 7,484 | |||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
Depreciation | 195 | 279 | ||||||
Amortization of intangible assets | 1,968 | 499 | ||||||
Amortization of deferred costs | 1,330 | 975 | ||||||
Accretion and write-off of debt discount | 31,585 | — | ||||||
Bad debt expense | 5,417 | 3,400 | ||||||
Stock -based compensation | 85,745 | — | ||||||
(Gain) loss on disposal of property, plant and equipment | (6 | ) | — | |||||
Prepayment penalty included in interest expense | 13,034 | — | ||||||
PPP loan forgiveness | (2,063 | ) | — | |||||
Loss on derivative liability | 48,603 | — | ||||||
Provision for inventory | 147 | 90 | ||||||
Paid in kind interest accrual | 12,851 | — | ||||||
Unrealized foreign currency transaction gains (losses) | 333 | (659 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Due from related parties | 178 | — | ||||||
Accounts receivable, net | (11,361 | ) | (80 | ) | ||||
Inventories | (7,120 | ) | (2,315 | ) | ||||
Prepaid expenses | (7,863 | ) | 1,673 | |||||
Other current assets | (2,742 | ) | (2,344 | ) | ||||
Deferred costs | (2,534 | ) | (3,616 | ) | ||||
Other long-term assets | (9,274 | ) | (4,675 | ) | ||||
Accounts payable and accrued expenses | 5,432 | 2,891 | ||||||
Deferred revenue | 989 | (13,507 | ) | |||||
Interest payable | (107 | ) | 188 | |||||
Income taxes payable | (1,766 | ) | 1,391 | |||||
Other long-term liabilities | (167 | ) | (971 | ) | ||||
Net cash used in operating activities | (34,758 | ) | (9,297 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (1,465 | ) | (307 | ) | ||||
Disposal of property and equipment | — | 3 | ||||||
Acquisition of Flywheel | (25,033 | ) | — | |||||
Purchases of intangible assets | (872 | ) | (601 | ) | ||||
Net cash used in investing activities | (27,370 | ) | (905 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings under revolving facility | — | 8,145 | ||||||
Proceeds from issuance of Common stock , net of offering costs | 277,753 | — | ||||||
Repayment of 1st Lien Loan | (33,688 | ) | (2,250 | ) | ||||
Repayment of 2nd Lien Loan | (137,443 | ) | — | |||||
Prepayment of premium on 2nd Lien Loan | (13,034 | ) | — | |||||
Deferred financing costs | (1,012 | ) | — | |||||
Repayment of revolving facility | (7,000 | ) | — | |||||
Proceeds from Paycheck Protection Program loan | —�� | 2,062 | ||||||
Net cash provided by financing activities | 85,576 | 7,957 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 203 | (171 | ) | |||||
Net decrease in cash and cash equivalents | 23,651 | (2,416 | ) | |||||
Cash and cash equivalents at beginning of period | 28,967 | 8,267 | ||||||
Cash and cash equivalents at end of period | $ | 52,618 | $ | 5,851 | ||||
Supplemental disclosures of cash flow information | ||||||||
Interest paid | 14,143 | 803 | ||||||
Income taxes paid | $ | 1,771 | $ | — | ||||
Supplemental disclosure of noncash financing and investing activities: | ||||||||
Conversion of convertible debt and derivative liability into common stock | $ | 191,519 | $ | — | ||||
Deferred offering costs included in accounts payable and accrued expenses | — | 1,030 | ||||||
Conversion of convertible preferred stock into common stock | 98,544 | — |
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Balance at beginning of period | $ | 8,132 | $ | 5,746 | |||||||
Provisions for bad debts, included in selling, general and administrative | 1,464 | 1,666 | |||||||||
Uncollectible receivables written off | (4,230) | (2,659) | |||||||||
Balance at end of period | $ | 5,366 | $ | 4,753 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Balance at beginning of period | $ | 5,256 | $ | 2,195 | $ | 5,746 | $ | 1,069 | ||||||||
Provisions for bad debts, included in selling, general and administrative | 1,903 | 1,483 | 5,417 | 3,400 | ||||||||||||
Uncollectible receivables written off | (114 | ) | (892 | ) | (4,118 | ) | (1,683 | ) | ||||||||
Balance at end of period | $ | 7,045 | $ | 2,786 | $ | 7,045 | $ | 2,786 | ||||||||
Estimated Useful Life | March 31, 2022 | December 31, 2021 | |||||||||||||||
(years) | |||||||||||||||||
Vehicles | 5 | $ | 263 | $ | 177 | ||||||||||||
Furniture and fixtures | 7 | 1,067 | 542 | ||||||||||||||
Office and other equipment | 5 | 1,181 | 945 | ||||||||||||||
Leasehold improvements | Lesser of lease term or useful life | 7,387 | 2,825 | ||||||||||||||
Construction in progress | n/a | 57 | 2,241 | ||||||||||||||
9,955 | 6,730 | ||||||||||||||||
Less: accumulated depreciation | (1,085) | (1,085) | |||||||||||||||
Total property and equipment, net | $ | 8,870 | $ | 5,645 |
Estimated Useful Life | September 30, 2021 | December 31, 2020 | ||||||||
(years) | ||||||||||
Vehicles | 5 | $ | 175 | $ | 43 | |||||
Furniture and fixtures | 7 | 223 | 179 | |||||||
Office and other equipment | 5 | 754 | 720 | |||||||
Leasehold improvements | Lesser of lease term or useful life | 1,763 | 675 | |||||||
2,915 | 1,617 | |||||||||
Less accumulated depreciation | (901 | ) | (733 | ) | ||||||
Total property and equipment, net | $ | 2,014 | $ | 884 | ||||||
As of September 30, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||||
Useful Life | Gross Value | Accumulated Amortization | Net Value | Gross Value | Accumulated Amortization | Net Value | ||||||||||||||||||||||
(in years) | ||||||||||||||||||||||||||||
Internal-use software | 3 | $ | 3,403 | $ | 1,823 | $ | 1,580 | $ | 2,767 | $ | 1,352 | $ | 1,415 | |||||||||||||||
Trade names & trademarks | n/a | 1,651 | — | 1,651 | 343 | — | 343 | |||||||||||||||||||||
Flywheel CRM software | 9 | 22,873 | 506 | 22,367 | — | — | — | |||||||||||||||||||||
Total intangible assets, net | $ | 27,927 | $ | 2,329 | $ | 25,598 | $ | 3,110 | $ | 1,352 | $ | 1,758 | ||||||||||||||||
Fair value of consideration transferred: | |||||
Cash paid to shareholders | $ | 7,521 | |||
Less: cash acquired | (19) | ||||
Fair value of consideration transferred, net of cash acquired: | $ | 7,502 | |||
Less: net assets acquired: | |||||
Assets acquired: | |||||
Accounts receivable | $ | 7 | |||
Inventory | 53 | ||||
Prepaid expenses | 31 | ||||
Other assets | 30 | ||||
Property and equipment, net | 1,292 | ||||
Intangible assets | 2,141 | ||||
$ | 3,554 | ||||
Liabilities assumed: | |||||
Accounts payable and accrued expenses | $ | (161) | |||
Deferred tax liability | (497) | ||||
Short-term debt | (170) | ||||
$ | (828) | ||||
Net assets acquired | 2,726 | ||||
Goodwill | $ | 4,776 |
Useful Life (in years) | Fair Value as of October 29, 2021 | ||||||||||
Brand name | Indefinite | $ | 418 | ||||||||
Software | 6 | 485 | |||||||||
Customer contracts | 7 | 1,238 | |||||||||
Total | $ | 2,141 |
As of March 31, 2022 | As of December 31, 2021 | ||||||||||||||||||||||||||||||||||||||||
Useful Life | Gross Value | Accumulated Amortization | Net Value | Gross Value | Accumulated Amortization | Net Value | |||||||||||||||||||||||||||||||||||
(in years) | |||||||||||||||||||||||||||||||||||||||||
Goodwill | n/a | $ | 4,614 | $ | — | $ | 4,614 | $ | 4,614 | $ | — | $ | 4,614 | ||||||||||||||||||||||||||||
Internal-use software | 3 | $ | 4,627 | $ | 2,352 | $ | 2,275 | $ | 3,862 | $ | 2,077 | $ | 1,785 | ||||||||||||||||||||||||||||
Trade names & trademarks | n/a | 4,058 | — | 4,058 | 3,329 | — | 3,329 | ||||||||||||||||||||||||||||||||||
Customer contracts | 7 | 1,194 | 75 | 1,119 | 1,194 | 30 | 1,164 | ||||||||||||||||||||||||||||||||||
Acquired software | 6 - 9 | 23,324 | 1,855 | 21,469 | 23,324 | 1,156 | 22,168 | ||||||||||||||||||||||||||||||||||
Total intangible assets, net | $ | 33,203 | $ | 4,282 | $ | 28,921 | $ | 31,709 | $ | 3,263 | $ | 28,446 |
Future Amortization | Future Amortization | ||||||||
Remainder of 2021 | $ | 856 | |||||||
2022 | 3,324 | ||||||||
Remainder of 2022 | Remainder of 2022 | $ | 2,895 | ||||||
2023 | 2,991 | 2023 | 3,537 | ||||||
2024 | 2,663 | 2024 | 3,180 | ||||||
2025 | 2,541 | 2025 | 2,812 | ||||||
2026 | 2026 | 2,787 | |||||||
Thereafter | 11,572 | Thereafter | 9,652 | ||||||
Total | $ | 23,947 | Total | $ | 24,863 | ||||
September 30, 2021 | December 31, 2020 | |||||||
Accounts payable | $ | 8,066 | $ | 7,670 | ||||
Accrued sales tax | 5,998 | 3,423 | ||||||
Accrued payroll and benefits | 1,493 | 1,399 | ||||||
Stock-based compensation liability | 4,446 | — | ||||||
Accrued inventory purchases | 14,376 | 5,999 | ||||||
Other payables | 82 | 166 | ||||||
$ | 34,461 | $ | 18,657 | |||||
March 31, 2022 | December 31, 2021 | ||||||||||
Accounts payable | $ | 10,256 | $ | 4,777 | |||||||
Accrued sales tax | 6,519 | 5,944 | |||||||||
Accrued payroll and benefits | 1,707 | 1,677 | |||||||||
Stock-based compensation liability | 2,678 | 4,221 | |||||||||
Accrued inventory purchases | 15,981 | 19,862 | |||||||||
Other payables | 1,378 | 113 | |||||||||
Total | $ | 38,519 | $ | 36,594 |
Deferred Revenue | |||||
Balance at December 31, 2021 | $ | 14,522 | |||
Revenue recognized | (12,008) | ||||
Increase | 11,803 | ||||
Balance at March 31, 2022 | $ | 14,317 | |||
Deferred Revenue | ||||
Balance at December 31, 2020 | $ | 14,095 | ||
Revenue Recognized | (11,523 | ) | ||
Increase | 15,393 | |||
Balance at June 30, 2021 | $ | 17,965 | ||
Revenue Recognized | (9,143 | ) | ||
Increase | 5,873 | |||
Balance at September 30, 2021 | $ | 14,695 | ||
Deferred Revenue | |||||
Balance at December 31, 2020 | $ | 14,095 | |||
Revenue recognized | (7,016) | ||||
Increase | 10,571 | ||||
Balance at March 31, 2021 | $ | 17,650 |
Deferred Revenue | ||||
Balance at December 31, 2019 | $ | 23,941 | ||
Revenue Recognized | (20,114 | ) | ||
Increase | 13,313 | |||
Balance at June 30, 2020 | $ | 17,140 | ||
Revenue Recognized | (6,439 | ) | ||
Increase | 2,311 | |||
Balance at September 30, 2020 | $ | 13,012 | ||
Debt Discount | Penalty | Total | ||||||||||
Subordinated Convertible Debt | $ | 23,740 | $ | — | $ | 23,740 | ||||||
Subordinated Second Lien Term Loan | 4,463 | 13,034 | 17,497 | |||||||||
First Lien Loan | 241 | — | 241 | |||||||||
$ | 28,444 | $ | 13,034 | $ | 41,478 | |||||||
As of December 31, 2020 | ||||||||||||||||
Risk-free rate | Volatility | Term (years) | Dividend yield | |||||||||||||
Liquidity event | 0.10%-0.34% | 37.4 | % | 3.00 | 0 | |||||||||||
QPO event | 0.10%-0.34% | 34.8 | % | 0.75 | 0 |
As of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities | ||||||||||||||||
Interest rate swap | $ | 0— | $ | (660 | ) | $ | 0— | $ | (660 | ) | ||||||
Derivative liability | 0 | 0— | (36,640 | ) | (36,640 | ) | ||||||||||
Total Liabilities | $ | 0— | $ | (660 | ) | $ | (36,640 | ) | $ | (37,300 | ) | |||||
Operating Leases | Operating Leases | ||||||||
Remainder of 2021 | $ | 416 | |||||||
2022 | 2,231 | ||||||||
Remainder of 2022 | Remainder of 2022 | $ | 2,208 | ||||||
2023 | 2,241 | 2023 | 3,557 | ||||||
2024 | 2,103 | 2024 | 2,852 | ||||||
2025 | 1,991 | 2025 | 2,749 | ||||||
2025 | 2025 | 2,531 | |||||||
Thereafter | 7,289 | Thereafter | 10,228 | ||||||
Total minimum lease payments | $ | 16,271 | |||||||
Total Minimum Lease Payments | Total Minimum Lease Payments | $ | 24,125 |
As of March 31, 2022 | ||||||||||
Risk-free interest rate | 0.61% - 2.40% | |||||||||
Expected dividend yield | — | |||||||||
Expected term in years | 0.29 | - 4.25 | ||||||||
Expected volatility | 27.20% - 30.50% |
Company Equity Value Threshold | Potential Restricted Stock Units Vested | |||||||||
$1.0 billion | 912,882 | |||||||||
$1.5 billion | 912,882 | |||||||||
$2.0 billion | 912,884 |
Weighted-average fair value (1) | $ | |||||||||
Expected volatility (2) | 26.3% - 29.20% | |||||||||
Risk-free interest rate | 0.92% | - 2.55% | ||||||||
Expected dividend yield | — | |||||||||
Expected term in years | 5.46 - 6.25 |
(1) | The weighted-average fair value based on stock options granted during the period. |
(2) | |||||
(3) | The risk-free interest rate was estimated based on the yield on U.S. Treasury |
(4) | The expected dividend yield represents a constant dividend yield applied for the duration of the expected term of the award. |
Shares (In thousands) | Weighted - Average Exercise Price | Weighted - Average Remaining Contractual Term | Aggregate Intrinsic Value (In thousands) | |||||||||||||
Outstanding at January 1, 2021 | 0 | $ | 0 | $ | 0 | |||||||||||
Granted | 264 | $ | 16.00 | |||||||||||||
Exercised | 0 | $ | 16.00 | |||||||||||||
Forfeited or expired | (9) | $ | 16.00 | |||||||||||||
Outstanding at September 30, 2021 | 255 | $ | 16.00 | $ | 0 | |||||||||||
Vested and exercisable | 66 | $ | 16.00 | $ | 0 | |||||||||||
Expected to vest | 189 | $ | 16.00 | 1.8 | $ | 0 | ||||||||||
Shares (in thousands) | Weighted - Average Exercise Price | Weighted - Average Remaining Contractual Term | Aggregate Intrinsic Value (in thousands) | |||||||||||
Outstanding as of January 1, 2022 | 252 | $ | 15.92 | 0 | $ | — | ||||||||
Granted | 441 | $ | 12.47 | |||||||||||
Exercised | — | |||||||||||||
Forfeited or expired | (20) | 15.92 | ||||||||||||
Outstanding as of March 31, 2022 | 673 | $ | 13.66 | $ | — | |||||||||
Vested and Exercisable | 63 | $ | 15.92 | $ | — | |||||||||
Expected to Vest | 610 | $ | 13.43 | 1.86 | $ | — |
Shares (In thousands) | Weighted - Average Grant Date Fair Value Per Share | |||||||
Outstanding at January 1, | — | $ | — | |||||
Granted | 3,591 | 15.54 | ||||||
Vested | (2,370 | ) | 15.31 | |||||
Forfeited | (152 | ) | 16.00 | |||||
Outstanding at September 30, | 1,069 | $ | 16.00 | |||||
Shares (in thousands) | Weighted - Average Grant Date Fair Value Per Share | |||||||
Outstanding as of January 1, 2022 | 997 | $ | 15.74 | |||||
Granted | 389 | 12.85 | ||||||
Vested | — | — | ||||||
Forfeited | — | — | ||||||
Outstanding as of March 31, 2022 | 1,386 | $ | 14.37 |
Shares (In thousands) | Weighted - Average Grant Date Fair Value Per Share | Shares (in thousands) | Weighted - Average Grant Date Fair Value Per Share | |||||||||||||
Outstanding at January 1, | 0 | $ | 0 | |||||||||||||
Outstanding as of January 1, 2022 | Outstanding as of January 1, 2022 | 117 | $ | 14.60 | ||||||||||||
Granted | 105 | 14.42 | Granted | — | — | |||||||||||
Vested | 0 | 0 | Vested | (8) | 15.15 | |||||||||||
Forfeited | 0 | 0 | Forfeited | (5) | 15.15 | |||||||||||
Outstanding at September 30, | 105 | $ | 14.42 | |||||||||||||
Outstanding as of March 31, 2022 | Outstanding as of March 31, 2022 | 104 | $ | 15.09 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net (loss) income | $ | (130,193) | $ | 2,349 | $ | (197,562) | $ | 7,484 | ||||||||
Net income allocated to participating preferred shares | $ | — | $ | 646 | $ | — | $ | 2,058 | ||||||||
Net (loss) income attributable to common stockholders—basic and diluted | $ | (130,193) | $ | 1,703 | $ | (197,562) | $ | 5,426 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic and diluted | 85,463,755 | 58,000,000 | 48,214,724 | 58,000,000 | ||||||||||||
Net (loss) income per common share: | ||||||||||||||||
Basic and diluted | $ | (1.52) | $ | 0.03 | $ | (4.10) | $ | 0.09 | ||||||||
Anti-dilutive securities excluded from diluted loss per common share: | ||||||||||||||||
Unvested restricted stock units | 1,068,750 | — | 1,068,750 | — | ||||||||||||
Unvested restricted stock awards | 104,512 | — | 104,512 | — | ||||||||||||
Stock options to purchase common stock | 254,965 | — | 254,965 | — | ||||||||||||
Total | 1,428,227 | — | 1,428,227 | — | ||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) | |||||||||||||||||||
Net income (loss) allocated to participating preferred shares | — | — | |||||||||||||||||||||
Net income (loss) attributable to common stockholders—basic and diluted | $ | 2,512 | $ | (36,845) | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted average common shares outstanding—basic | 95,709,671 | 29,281,514 | |||||||||||||||||||||
Effect of dilutive securities | 977,612 | — | |||||||||||||||||||||
Weighted average shares outstanding—diluted | 96,687,283 | 29,281,514 | |||||||||||||||||||||
Net earnings (loss) per share: | |||||||||||||||||||||||
Basis earnings (loss) per share | $ | 0.03 | $ | (1.26) | |||||||||||||||||||
Diluted earnings (loss) per share | $ | 0.03 | $ | (1.26) | |||||||||||||||||||
Anti-dilutive securities excluded from diluted earnings (loss) per share: | |||||||||||||||||||||||
Stock options to purchase common stock | 662,935 | — | |||||||||||||||||||||
Convertible preferred stock | — | 9,854,432 | |||||||||||||||||||||
Restricted stock units | — | 2,738,648 | |||||||||||||||||||||
Convertible notes | — | 5,856,302 | |||||||||||||||||||||
Total | 662,935 | 18,449,382 |
For the Three Months Ended September 30, 2021 | For the Three Months Ended September 30, 2020 | |||||||||||||||||||||||
Revenue | Cost of revenue | Gross profit | Revenue | Cost of revenue | Gross profit (loss) | |||||||||||||||||||
United States: | ||||||||||||||||||||||||
Franchise | $ | 11,117 | $ | 1,047 | $ | 10,070 | $ | 6,245 | $ | 1,774 | $ | 4,471 | ||||||||||||
Equipment and merchandise | 4,162 | 2,239 | 1,923 | 3,583 | 1,857 | 1,726 | ||||||||||||||||||
$ | 15,279 | $ | 3,286 | $ | 11,993 | $ | 9,828 | $ | 3,631 | $ | 6,197 | |||||||||||||
Australia: | ||||||||||||||||||||||||
Franchise | $ | 4,330 | $ | 158 | $ | 4,172 | $ | 6,145 | $ | 248 | $ | 5,897 | ||||||||||||
Equipment and merchandise | 2,234 | 1,992 | 242 | 2,707 | 2,305 | 402 | ||||||||||||||||||
$ | 6,564 | $ | 2,150 | $ | 4,414 | $ | 8,852 | $ | 2,553 | $ | 6,299 | |||||||||||||
Rest of World: | ||||||||||||||||||||||||
Franchise | $ | 3,066 | $ | 281 | $ | 2,785 | $ | 1,677 | $ | (25 | ) | $ | 1,702 | |||||||||||
Equipment and merchandise | 2,268 | 1,521 | 747 | 1,606 | 1,085 | 521 | ||||||||||||||||||
$ | 5,334 | $ | 1,802 | $ | 3,532 | $ | 3,283 | $ | 1,060 | $ | 2,223 | |||||||||||||
Consolidated: | ||||||||||||||||||||||||
Franchise | $ | 18,513 | $ | 1,486 | $ | 17,027 | $ | 14,067 | $ | 1,997 | $ | 12,070 | ||||||||||||
Equipment and merchandise | 8,664 | 5,752 | 2,912 | 7,896 | 5,247 | 2,649 | ||||||||||||||||||
$ | 27,177 | $ | 7,238 | $ | 19,939 | $ | 21,963 | $ | 7,244 | $ | 14,719 | |||||||||||||
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||
Revenue | Cost of revenue | Gross profit | Revenue | Cost of revenue | Gross profit | ||||||||||||||||||||||||||||||
United States: | |||||||||||||||||||||||||||||||||||
Franchise | $ | 12,401 | $ | 1,015 | $ | 11,386 | $ | 7,015 | $ | 1,022 | $ | 5,993 | |||||||||||||||||||||||
Equipment and merchandise | 22,848 | 7,754 | 15,094 | 2,481 | 1,478 | 1,003 | |||||||||||||||||||||||||||||
$ | 35,249 | $ | 8,769 | $ | 26,480 | $ | 9,496 | $ | 2,500 | $ | 6,996 | ||||||||||||||||||||||||
Australia: | |||||||||||||||||||||||||||||||||||
Franchise | $ | 3,448 | $ | 119 | $ | 3,329 | $ | 3,289 | $ | 178 | $ | 3,111 | |||||||||||||||||||||||
Equipment and merchandise | 2,130 | 1,733 | 397 | 839 | 807 | 32 | |||||||||||||||||||||||||||||
$ | 5,578 | $ | 1,852 | $ | 3,726 | $ | 4,128 | $ | 985 | $ | 3,143 | ||||||||||||||||||||||||
Rest of World: | |||||||||||||||||||||||||||||||||||
Franchise | $ | 4,011 | $ | 97 | $ | 3,914 | $ | 2,852 | $ | 14 | $ | 2,838 | |||||||||||||||||||||||
Equipment and merchandise | 5,170 | 1,456 | 3,714 | 1,715 | 896 | 819 | |||||||||||||||||||||||||||||
$ | 9,181 | $ | 1,553 | $ | 7,628 | $ | 4,567 | $ | 910 | $ | 3,657 | ||||||||||||||||||||||||
Consolidated: | |||||||||||||||||||||||||||||||||||
Franchise | $ | 19,860 | $ | 1,231 | $ | 18,629 | $ | 13,156 | $ | 1,214 | $ | 11,942 | |||||||||||||||||||||||
Equipment and merchandise | 30,148 | 10,943 | 19,205 | 5,035 | 3,181 | 1,854 | |||||||||||||||||||||||||||||
$ | 50,008 | $ | 12,174 | $ | 37,834 | $ | 18,191 | $ | 4,395 | $ | 13,796 |
For the Nine Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2020 | |||||||||||||||||||||||
Revenue | Cost of revenue | Gross profit | Revenue | Cost of revenue | Gross profit (loss) | |||||||||||||||||||
United States: | ||||||||||||||||||||||||
Franchise | $ | 29,873 | $ | 3,377 | $ | 26,496 | $ | 21,954 | $ | 5,863 | $ | 16,091 | ||||||||||||
Equipment and merchandise | 11,166 | 6,154 | 5,012 | 11,045 | 5,561 | 5,484 | ||||||||||||||||||
$ | 41,039 | $ | 9,531 | $ | 31,508 | $ | 32,999 | $ | 11,424 | $ | 21,575 | |||||||||||||
Australia: | ||||||||||||||||||||||||
Franchise | $ | 12,039 | $ | 430 | $ | 11,609 | $ | 10,985 | $ | 580 | $ | 10,405 | ||||||||||||
Equipment and merchandise | 3,762 | 3,313 | 449 | 5,185 | 4,489 | 696 | ||||||||||||||||||
$ | 15,801 | $ | 3,743 | $ | 12,058 | $ | 16,170 | $ | 5,069 | $ | 11,101 | |||||||||||||
Rest of World: | ||||||||||||||||||||||||
Franchise | $ | 10,338 | $ | 355 | $ | 9,983 | $ | 6,827 | $ | 148 | $ | 6,679 | ||||||||||||
Equipment and merchandise | 5,022 | 3,205 | 1,817 | 8,267 | 4,360 | 3,907 | ||||||||||||||||||
$ | 15,360 | $ | 3,560 | $ | 11,800 | $ | 15,094 | $ | 4,508 | $ | 10,586 | |||||||||||||
Consolidated: | ||||||||||||||||||||||||
Franchise | $ | 52,250 | $ | 4,162 | $ | 48,088 | $ | 39,766 | $ | 6,591 | $ | 33,175 | ||||||||||||
Equipment and merchandise | 19,950 | 12,672 | 7,278 | 24,497 | 14,410 | 10,087 | ||||||||||||||||||
$ | 72,200 | $ | 16,834 | $ | 55,366 | $ | 64,263 | $ | 21,001 | $ | 43,262 | |||||||||||||
For the Three Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Segment gross profit | $ | 19,939 | $ | 14,719 | ||||
Selling, general and administrative expenses | 110,492 | 10,100 | ||||||
Loss on derivative liabilities | 0 | — | ||||||
Interest expense, net | 41,897 | 534 | ||||||
Other income, net | (2,035 | ) | (238 | ) | ||||
(Benefit) provision for income taxes | (222 | ) | 1,974 | |||||
Net (loss) income | $ | (130,193 | ) | $ | 2,349 | |||
For the Nine Months Ended September, | ||||||||
2021 | 2020 | |||||||
Segment gross profit | $ | 55,366 | $ | 43,262 | ||||
Selling, general and administrative expenses | 145,882 | 31,724 | ||||||
Loss on derivative liabilities | 48,603 | — | ||||||
Interest expense, net | 59,165 | 1,333 | ||||||
Other income, net | (1,415 | ) | (815 | ) | ||||
(Benefit) provision for income taxes | 693 | 3,536 | ||||||
Net (loss) income | $ | (197,562 | ) | $ | 7,484 | |||
For the Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Segment gross profit | $ | 37,834 | $ | 13,796 | |||||||
Selling, general and administrative expenses | 32,090 | 16,828 | |||||||||
Loss on derivative liabilities, net | — | 25,505 | |||||||||
Interest expense, net | 126 | 8,415 | |||||||||
Other expense, net | 570 | 291 | |||||||||
Provision (benefit) for income taxes | 2,536 | (398) | |||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) | |||||||
Net earnings (loss) per share | $ | 0.03 | $ | (1.26) | |||||||
System-wide Sales | $ | 117,388 | $ | 94,052 | |||||||
System-wide Visits | 7,216 | 6,776 | |||||||||
Same store sales growth | 6.2 | % | (21.2) | % | |||||||
New Franchises Sold, net | 706 | 3 | |||||||||
Total Franchises Sold, end of period | 4,007 | 2,247 | |||||||||
Initial Studio Openings, net | 117 | 50 | |||||||||
Total Studios, end of period | 1,866 | 1,487 | |||||||||
EBITDA | 6,974 | (28,176) | |||||||||
Adjusted EBITDA | $ | 17,664 | $ | 5,270 | |||||||
Adjusted EBITDA margin | 35.3 | % | 29.0 | % |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income/(loss) | $ | (130,193 | ) | $ | 2,349 | $ | (197,562 | ) | $ | 7,484 | ||||||
Earnings per share | $ | (1.52 | ) | $ | 0.03 | $ | (4.10 | ) | $ | 0.09 | ||||||
System-wide Sales | $ | 99,436 | $ | 74,627 | $ | 296,474 | $ | 212,594 | ||||||||
System-wide Visits | 6,350 | 5,420 | 20,081 | 14,194 | ||||||||||||
Same store sales growth | 6.0 | % | (33.8 | %) | 14.7 | % | (32.7 | %) | ||||||||
New Franchises Sold, net | 210 | 155 | 767 | 322 | ||||||||||||
Total Franchises Sold, end of period | 3,011 | 2,214 | 3,011 | 2,214 | ||||||||||||
Initial Studio Openings, net | 63 | 101 | 181 | 236 | ||||||||||||
Total Studios, end of period | 1,618 | 1,376 | 1,618 | 1,376 | ||||||||||||
EBITDA | $ | (87,127 | ) | $ | 5,448 | $ | (134,211 | ) | $ | 14,106 | ||||||
Adjusted EBITDA | $ | 10,115 | $ | 7,381 | $ | 26,061 | $ | 20,021 | ||||||||
Adjusted EBITDA margin | 37.2 | % | 33.6 | % | 36.1 | % | 31.2 | % |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
United States | $ | 52,695 | $ | 30,473 | |||||||
Australia | 42,953 | 51,998 | |||||||||
ROW | 21,740 | 11,581 | |||||||||
Total | $ | 117,388 | $ | 94,052 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
United States | $ | 46,306 | $ | 20,154 | $ | 117,047 | $ | 59,633 | ||||||||
Australia | 33,965 | 40,937 | 135,121 | 114,434 | ||||||||||||
ROW | 19,165 | 13,536 | 44,306 | 38,527 | ||||||||||||
Total | $ | 99,436 | $ | 74,627 | $ | 296,474 | $ | 212,594 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
United States | 3,025 | 1,406 | 8,141 | 3,550 | ||||||||||||
Australia | 2,047 | 3,120 | 9,015 | 8,112 | ||||||||||||
ROW | 1,278 | 894 | 2,925 | 2,532 | ||||||||||||
Total | 6,350 | 5,420 | 20,081 | 14,194 | ||||||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
(in thousands) | |||||||||||
United States | 3,101 | 2,266 | |||||||||
Australia | 2,674 | 3,742 | |||||||||
ROW | 1,441 | 768 | |||||||||
Total | 7,216 | 6,776 |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | ||||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, beginning of period | 1,710 | 803 | 788 | 3,301 | 931 | 679 | 634 | 2,244 | |||||||||||||||||||||||||||||||||||||||
New Franchises Sold, net(a) | 692 | 1 | 13 | 706 | 10 | (3) | (4) | 3 | |||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, end of period | 2,402 | 804 | 801 | 4,007 | 941 | 676 | 630 | 2,247 | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | |||||||||||||||||||||||||
Total Franchises Sold, beginning of period | 1,379 | 785 | 637 | 2,801 | 846 | 667 | 546 | 2,059 | ||||||||||||||||||||||||
New Franchises Sold, net(a) | 87 | 15 | 108 | 210 | 68 | 8 | 79 | 155 | ||||||||||||||||||||||||
Total Franchises Sold, end of period | 1,466 | 800 | 745 | 3,011 | 914 | 675 | 625 | 2,214 |
Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, beginning of period | 931 | 679 | 634 | 2,244 | 814 | 643 | 435 | 1,892 | Total Franchises Sold, beginning of period | 931 | 679 | 634 | 2,244 | 814 | 643 | 435 | 1,892 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Franchises Sold, net(a) | 535 | 121 | 111 | 767 | 100 | 32 | 190 | 322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Franchises Sold, net(a) | New Franchises Sold, net(a) | 779 | 124 | 154 | 1,057 | 117 | 36 | 199 | 352 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, end of period | 1,466 | 800 | 745 | 3,011 | 914 | 675 | 625 | 2,214 | Total Franchises Sold, end of period | 1,710 | 803 | 788 | 3,301 | 931 | 679 | 634 | 2,244 |
Three months ended September 30, 2021 | Three months ended September 30, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Studios, beginning of period | 556 | 628 | 371 | 1,555 | 396 | 595 | 284 | 1,275 | Total Studios, beginning of period | 654 | 653 | 442 | 1,749 | 486 | 616 | 335 | 1,437 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Studio Openings, net(a) | 30 | 5 | 28 | 63 | 55 | 9 | 37 | 101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial Studio Openings, net(a) | Initial Studio Openings, net(a) | 73 | 10 | 34 | 117 | 32 | 1 | 17 | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Studios, end of period | 586 | 633 | 399 | 1,618 | 451 | 604 | 321 | 1,376 | Total Studios, end of period | 727 | 663 | 476 | 1,866 | 518 | 617 | 352 | 1,487 |
Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | |||||||||||||||||||||||||
Total Studios, beginning of period | 486 | 616 | 335 | 1,437 | 320 | 581 | 239 | 1,140 | ||||||||||||||||||||||||
Initial Studio Openings, net(a) | 100 | 17 | 64 | 181 | 131 | 23 | 82 | 236 | ||||||||||||||||||||||||
Total Studios, end of period | 586 | 633 | 399 | 1,618 | 451 | 604 | 321 | 1,376 |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Other Data: | (in thousands) | ||||||||||
EBITDA | $ | 6,974 | $ | (28,176) | |||||||
Adjusted EBITDA | $ | 17,664 | $ | 5,270 | |||||||
Adjusted EBITDA margin (1) | 35.3 | % | 29.0 | % | |||||||
Same Store Sales growth (2) | 6.2 | % | (21.2) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Other Data: | (dollars in thousands) | |||||||||||||||
EBITDA | $ | (87,127 | ) | $ | 5,448 | $ | (134,211 | ) | $ | 14,106 | ||||||
Adjusted EBITDA | $ | 10,115 | $ | 7,381 | $ | 26,061 | $ | 20,021 | ||||||||
Adjusted EBITDA margin (1) | 37.2 | % | 33.6 | % | 36.1 | % | 31.2 | % | ||||||||
Same store sales growth (2) | 6.0 | % | (33.8 | %) | 14.7 | % | (32.7 | %) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Net (loss) income | $ | (130,193 | ) | $ | 2,349 | $ | (197,562 | ) | $ | 7,484 | ||||||
Net interest expense | 41,897 | 534 | 59,165 | 1,333 | ||||||||||||
(Benefit) provision for income taxes | (222 | ) | 1,974 | 693 | 3,536 | |||||||||||
Depreciation and amortization | 786 | 301 | 2,163 | 778 | ||||||||||||
Amortization of deferred costs | 605 | 290 | 1,330 | 975 | ||||||||||||
EBITDA | $ | (87,127 | ) | $ | 5,448 | $ | (134,211 | ) | $ | 14,106 | ||||||
Sales tax reserve (a) | 140 | 1 | 387 | 516 | ||||||||||||
Transaction fees (b) | 5,485 | 1,124 | 8,816 | 3,780 | ||||||||||||
Loss on derivative liability (c) | — | — | 48,603 | — | ||||||||||||
Certain legal costs and settlements (d) | 1,029 | 808 | 4,452 | 1,589 | ||||||||||||
Stock-based compensation (e) | 85,745 | — | 85,745 | — | ||||||||||||
Recruitment (f) | 17 | — | 70 | — | ||||||||||||
COVID concessions (g) | 1,590 | — | 5,923 | — | ||||||||||||
Relocation (h) | 258 | — | 510 | 30 | ||||||||||||
Development costs (i) | 932 | — | 3,720 | — | ||||||||||||
Charitable donation (j) | 2,046 | — | 2,046 | — | ||||||||||||
Adjusted EBITDA | $ | 10,115 | $ | 7,381 | $ | 26,061 | $ | 20,021 | ||||||||
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) | |||||||
Interest expense, net | 126 | 8,415 | |||||||||
Provision (benefit) for income taxes | 2,536 | (398) | |||||||||
Depreciation and amortization | 1,174 | 204 | |||||||||
Amortization of deferred costs | 626 | 448 | |||||||||
EBITDA | $ | 6,974 | $ | (28,176) | |||||||
Sales tax reserve (a) | — | 100 | |||||||||
Transaction fees (b) | 1,788 | 1,582 | |||||||||
Loss on derivative liabilities (c) | — | 25,505 | |||||||||
Certain legal costs and settlements (d) | 2,325 | 2,537 | |||||||||
Stock-based compensation (e) | 2,603 | — | |||||||||
Recruitment (f) | 655 | — | |||||||||
COVID concessions (g) | 896 | 2,482 | |||||||||
Relocation (h) | 724 | 69 | |||||||||
Development costs (i) | 1,699 | 1,171 | |||||||||
Adjusted EBITDA | $ | 17,664 | $ | 5,270 |
Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Franchise (Related party: $2,616 and $45 for the three months ended March 31, 2022 and 2021, respectively) | $ | 19,860 | $ | 13,156 | |||||||||||||||||||
Equipment and merchandise (Related party: $7 and $0 for the three months ended March 31, 2022 and 2021, respectively) | 30,148 | 5,035 | |||||||||||||||||||||
Total revenues | 50,008 | 18,191 | |||||||||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||
Cost of franchise revenue | 1,231 | 1,214 | |||||||||||||||||||||
Cost of equipment and merchandise (Related party: $3,286 and $941 for the three months ended March 31, 2022 and 2021, respectively) | 10,943 | 3,181 | |||||||||||||||||||||
Selling, general and administrative expenses | 32,090 | 16,828 | |||||||||||||||||||||
Forgiveness of loans to directors | — | — | |||||||||||||||||||||
Total costs and operating expenses | 44,264 | 21,223 | |||||||||||||||||||||
Income (loss) from operations | 5,744 | (3,032) | |||||||||||||||||||||
Loss on derivative liabilities, net | — | 25,505 | |||||||||||||||||||||
Interest expense, net | 126 | 8,415 | |||||||||||||||||||||
Other expense, net | 570 | 291 | |||||||||||||||||||||
Income (loss) before income taxes | 5,048 | (37,243) | |||||||||||||||||||||
Provision (benefit) for income taxes | 2,536 | (398) | |||||||||||||||||||||
Net income (loss) | $ | 2,512 | $ | (36,845) |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Franchise (Related party: $2,724 and $52 for the three months ended September 30, 2021 and 2020, respectively, and $3,329 and $277 for the nine months ended September 30, 2021 and 2020, respectively) | $ | 18,513 | $ | 14,067 | $ | 52,250 | $ | 39,766 | ||||||||
Equipment and merchandise (Related party: $0 and $0 for the three months ended September 30, 2021 and 2020, respectively, and $0 and $328 for the nine months ended September 30, 2021 and 2020, respectively) | 8,664 | 7,896 | 19,950 | 24,497 | ||||||||||||
Total revenues | 27,177 | 21,963 | 72,200 | 64,263 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of franchise revenue (Related party: $0 and $0 for the three months ended September 30, 2021 and 2020, respectively, and $0 and $12 for the nine months ended September 30, 2021 and 2020, respectively) | 1,486 | 1,997 | 4,162 | 6,591 | ||||||||||||
Cost of equipment and merchandise (Related party: $1,561 and $355 for the three months ended September 30, 2021 and 2020, respectively, and $3,678 and $1,098 for the nine months ended September 30, 2021 and 2020, respectively) | 5,752 | 5,247 | 12,672 | 14,410 | ||||||||||||
Selling, general and administrative expenses | 110,492 | 10,100 | 145,882 | 31,724 | ||||||||||||
Total costs and operating expenses | 117,730 | 17,344 | 162,716 | 52,725 | ||||||||||||
(Loss) income from operations | (90,553 | ) | 4,619 | (90,516 | ) | 11,538 | ||||||||||
Loss on derivative liabilities | — | — | 48,603 | — | ||||||||||||
Interest expense, net | 41,897 | 534 | 59,165 | 1,333 | ||||||||||||
Other income, net | (2,035 | ) | (238 | ) | (1,415 | ) | (815 | ) | ||||||||
(Loss) income before income taxes | (130,415 | ) | 4,323 | (196,869 | ) | 11,020 | ||||||||||
(Benefit) provision for income taxes | (222 | ) | 1,974 | 693 | 3,536 | |||||||||||
Net (loss) income | $ | (130,193 | ) | $ | 2,349 | $ | (197,562 | ) | $ | 7,484 | ||||||
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Change | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Franchise | Franchise | ||||||||||||||||||||||||||||||||||||||
USA | $ | 11,117 | $ | 6,245 | $ | 4,872 | 78 | % | USA | $ | 12,401 | $ | 7,015 | $ | 5,386 | 77 | % | ||||||||||||||||||||||
Australia | 4,330 | 6,145 | (1,815 | ) | (30 | )% | Australia | 3,448 | 3,289 | 159 | 5 | % | |||||||||||||||||||||||||||
ROW | 3,066 | 1,677 | 1,389 | 83 | % | ROW | 4,011 | 2,852 | 1,159 | 41 | % | ||||||||||||||||||||||||||||
Total franchise revenue | $ | 18,513 | $ | 14,067 | $ | 4,446 | 32 | % | Total franchise revenue | $ | 19,860 | $ | 13,156 | $ | 6,704 | 51 | % | ||||||||||||||||||||||
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Franchise | ||||||||||||||||
USA | $ | 29,873 | $ | 21,954 | $ | 7,919 | 36 | % | ||||||||
Australia | 12,039 | 10,985 | 1,054 | 10 | % | |||||||||||
ROW | 10,338 | 6,827 | 3,511 | 51 | % | |||||||||||
Total franchise revenue | $ | 52,250 | $ | 39,766 | $ | 12,484 | 31 | % | ||||||||
Three months ended September 30, 2021 | Three months ended September 30, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, beginning of period | 1,379 | 785 | 637 | 2,801 | 846 | 667 | 546 | 2,059 | Total Franchises Sold, beginning of period | 1,710 | 803 | 788 | 3,301 | 931 | 679 | 634 | 2,244 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Franchises Sold, net | 87 | 15 | 108 | 210 | 68 | 8 | 79 | 155 | 692 | 1 | 13 | 706 | 10 | (3) | (4) | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, end of period | 1,466 | 800 | 745 | 3,011 | 914 | 675 | 625 | 2,214 | Total Franchises Sold, end of period | 2,402 | 804 | 801 | 4,007 | 941 | 676 | 630 | 2,247 |
Nine months ended September 30, 2021 | Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | |||||||||||||||||||||||||
Total Franchises Sold, beginning of period | 931 | 679 | 634 | 2,244 | 814 | 643 | 435 | 1,892 | ||||||||||||||||||||||||
New Franchises Sold, net | 535 | 121 | 111 | 767 | 100 | 32 | 190 | 322 | ||||||||||||||||||||||||
Total Franchises Sold, end of period | 1,466 | 800 | 745 | 3,011 | 914 | 675 | 625 | 2,214 |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | ||||||||||||||||||||||||||||||||||||||||
Total Studios, beginning of period | 654 | 653 | 442 | 1,749 | 486 | 616 | 335 | 1,437 | |||||||||||||||||||||||||||||||||||||||
Initial Studio Openings, net(a) | 73 | 10 | 34 | 117 | 32 | 1 | 17 | 50 | |||||||||||||||||||||||||||||||||||||||
Total Studios, end of period | 727 | 663 | 476 | 1,866 | 518 | 617 | 352 | 1,487 |
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Change | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Equipment and merchandise | Equipment and merchandise | ||||||||||||||||||||||||||||||||||||||
USA | $ | 4,162 | $ | 3,583 | $ | 579 | 16 | % | USA | $ | 22,848 | $ | 2,481 | $ | 20,367 | 821 | % | ||||||||||||||||||||||
Australia | 2,234 | 2,707 | (473 | ) | (17 | )% | Australia | 2,130 | 839 | 1,291 | 154 | % | |||||||||||||||||||||||||||
ROW | 2,268 | 1,606 | 662 | 41 | % | ROW | 5,170 | 1,715 | 3,455 | 201 | % | ||||||||||||||||||||||||||||
Total equipment and merchandise revenue | $ | 8,664 | $ | 7,896 | $ | 768 | 10 | % | Total equipment and merchandise revenue | $ | 30,148 | $ | 5,035 | $ | 25,113 | 499 | % | ||||||||||||||||||||||
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Equipment and merchandise | ||||||||||||||||
USA | $ | 11,166 | $ | 11,045 | $ | 121 | 1 | % | ||||||||
Australia | 3,762 | 5,185 | (1,423 | ) | (27 | )% | ||||||||||
ROW | 5,022 | 8,267 | (3,245 | ) | (39 | )% | ||||||||||
Total equipment and merchandise revenue | $ | 19,950 | $ | 24,497 | $ | (4,547 | ) | (19 | )% | |||||||
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Change | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Franchise | Franchise | ||||||||||||||||||||||||||||||||||||||
USA | $ | 1,047 | $ | 1,774 | $ | (727 | ) | (41 | )% | USA | $ | 1,015 | $ | 1,022 | $ | (7) | (1) | % | |||||||||||||||||||||
Australia | 158 | 248 | (90 | ) | (36 | )% | Australia | 119 | 178 | (59) | (33) | % | |||||||||||||||||||||||||||
ROW | 281 | (25 | ) | 306 | 1224 | % | ROW | 97 | 14 | 83 | 593 | % | |||||||||||||||||||||||||||
Total cost of franchise revenue | $ | 1,486 | $ | 1,997 | $ | (511 | ) | (26 | )% | Total cost of franchise revenue | $ | 1,231 | $ | 1,214 | $ | 17 | 1 | % | |||||||||||||||||||||
Percentage of franchise revenue | 8 | % | 14 | % | Percentage of franchise revenue | 6 | % | 9 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Franchise | ||||||||||||||||
USA | $ | 3,377 | $ | 5,863 | $ | (2,486 | ) | (42 | )% | |||||||
Australia | 430 | 580 | (150 | ) | (26 | )% | ||||||||||
ROW | 355 | 148 | 207 | 140 | % | |||||||||||
Total cost of franchise revenue | $ | 4,162 | $ | 6,591 | $ | (2,429 | ) | (37 | )% | |||||||
Percentage of franchise revenue | 8 | % | 17 | % |
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Equipment and merchandise | ||||||||||||||||
USA | $ | 2,239 | $ | 1,857 | $ | 382 | 21 | % | ||||||||
Australia | 1,992 | 2,305 | (313 | ) | (14 | )% | ||||||||||
ROW | 1,521 | 1,085 | 436 | 40 | % | |||||||||||
Total equipment and merchandise cost of revenue | $ | 5,752 | $ | 5,247 | $ | 505 | 10 | % | ||||||||
Percentage of equipment and merchandise revenue | 66 | % | 66 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | Change | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Equipment and merchandise | Equipment and merchandise | ||||||||||||||||||||||||||||||||||||||
USA | $ | 6,154 | $ | 5,561 | $ | 593 | 11 | % | USA | $ | 7,754 | $ | 1,478 | $ | 6,276 | 425 | % | ||||||||||||||||||||||
Australia | 3,313 | 4,489 | (1,176 | ) | (26 | )% | Australia | 1,733 | 807 | 926 | 115 | % | |||||||||||||||||||||||||||
ROW | 3,205 | 4,360 | (1,155 | ) | (26 | )% | ROW | 1,456 | 896 | 560 | 63 | % | |||||||||||||||||||||||||||
Total equipment and merchandise cost of revenue | $ | 12,672 | $ | 14,410 | $ | (1,738 | ) | (12 | )% | ||||||||||||||||||||||||||||||
Total cost of equipment and merchandise revenue | Total cost of equipment and merchandise revenue | $ | 10,943 | $ | 3,181 | $ | 7,762 | 244 | % | ||||||||||||||||||||||||||||||
Percentage of equipment and merchandise revenue | 64 | % | 59 | % | Percentage of equipment and merchandise revenue | 36 | % | 63 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Selling, general and administrative expenses | $ | 32,090 | $ | 16,828 | $ | 15,262 | 91 | % | |||||||||||||||
Percentage of revenue | 64 | % | 93 | % |
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general and administrative expenses | $ | 110,492 | $ | 10,100 | $ | 100,392 | 994 | % | ||||||||
Percentage of revenue | 407 | % | 46 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general and administrative expenses | $ | 145,882 | $ | 31,724 | $ | 114,158 | 360 | % | ||||||||
Percentage of revenue | 202 | % | 49 | % |
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Loss on derivative liabilities | $ | — | $ | — | $ | — |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loss on derivative liabilities, net | $ | — | $ | 25,505 | $ | (25,505) | (100) | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Loss on derivative liabilities | $ | 48,603 | $ | — | $ | 48,603 | 100 | % |
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest expense, net | $ | 41,897 | $ | 534 | $ | 41,363 | 7746 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest expense, net | $ | 126 | $ | 8,415 | $ | (8,289) | (99) | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest expense, net | $ | 59,165 | $ | 1,333 | $ | 57,832 | 4338 | % |
Debt Discount | Penalty | Total | ||||||||||
Subordinated Convertible Debt | $ | 23,740 | $ | — | $ | 23,740 | ||||||
Subordinated Second Lien Term Loan | 4,463 | 13,034 | 17,497 | |||||||||
First Lien Loan | 241 | — | 241 | |||||||||
$ | 28,444 | $ | 13,034 | $ | 41,478 | |||||||
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Other income, net | $ | (2,035 | ) | $ | (238 | ) | $ | 1,797 | 755 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Other expense, net | $ | 570 | $ | 291 | $ | 279 | 96 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Other income, net | $ | (1,415 | ) | $ | (815 | ) | $ | 600 | 74 | % |
Three Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
(Benefit) provision for income taxes | $ | (222 | ) | $ | 1,974 | $ | (2,196 | ) | (111 | )% |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Provision (benefit) for income taxes | $ | 2,536 | $ | (398) | $ | 2,934 | 737 | % |
Nine Months Ended September 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
(Benefit) provision for income taxes | $ | 693 | $ | 3,536 | $ | (2,843 | ) | (80 | )% |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
Net cash used in operating activities | $ | (34,758 | ) | $ | (9,297 | ) | Net cash used in operating activities | $ | (44,990) | $ | (201) | ||||||||||||||||||||||||||||||||
Net cash used in investing activities | (27,370 | ) | (905 | ) | Net cash used in investing activities | (3,413) | (179) | ||||||||||||||||||||||||||||||||||||
Net cash provided by financing activities | 85,576 | 7,957 | |||||||||||||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | Net cash provided by (used in) financing activities | 20,609 | (1,313) | ||||||||||||||||||||||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 203 | (171 | ) | Effect of exchange rate changes on cash and cash equivalents | (218) | (384) | |||||||||||||||||||||||||||||||||||||
Net decrease in cash and cash equivalents | $ | 23,651 | $ | (2,416 | ) | Net decrease in cash and cash equivalents | $ | (28,012) | $ | (2,077) | |||||||||||||||||||||||||||||||||
Exhibit Number | Description | |||||
31.1* | ||||||
31.2* | ||||||
32.1* | ||||||
32.2* | ||||||
101.INS* | ||||||
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||||||
101.SCH* | ||||||
Inline XBRL Taxonomy Extension Schema Document. | ||||||
101.CAL* | ||||||
Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||||
101.DEF* | ||||||
Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||||
101.LAB* | ||||||
Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||
101.PRE* | ||||||
Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||||
Exhibit 104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
F45 Training Holdings Inc. | ||||||||||||||
Date: | By: | /s/ Chris E. Payne | ||||||||||||
Chris E. Payne | ||||||||||||||
Chief Financial Officer |