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 | Name of each exchange on which registered | ||||||||
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 | |||||||
June 30, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 16,604 | $ | 28,967 | ||||
Restricted cash | 1,557 | 0 | ||||||
Accounts receivable, net | 12,683 | 9,582 | ||||||
Due from related parties | 1,855 | 2,406 | ||||||
Inventories | 6,380 | 4,485 | ||||||
Deferred costs | 1,776 | 1,616 | ||||||
Prepaid expenses | 3,795 | 2,891 | ||||||
Other current assets | 8,456 | 2,452 | ||||||
Total current assets | 53,106 | 52,399 | ||||||
Property and equipment, net | 895 | 884 | ||||||
Deferred tax assets, net | 6,940 | 7,096 | ||||||
Intangible assets, net | 21,852 | 1,758 | ||||||
Deferred costs, net of current | 11,834 | 11,215 | ||||||
Other long-term assets | 12,331 | 5,165 | ||||||
Total assets | $ | 106,958 | $ | 78,517 | ||||
Liabilities, convertible preferred stock and stockholders’ deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 26,317 | $ | 18,657 | ||||
Deferred revenue | 10,457 | 3,783 | ||||||
Interest payable | 143 | 250 | ||||||
Current portion of long-term debt | 6,977 | 5,847 | ||||||
Income taxes payable | 4,315 | 3,499 | ||||||
Total current liabilities | 48,209 | 32,036 | ||||||
Deferred revenue, net of current | 7,508 | 10,312 | ||||||
Long-term derivative liability | 85,243 | 36,640 | ||||||
Long-term debt, net of current | 248,354 | 236,186 | ||||||
Other long-term liabilities | 26,464 | 4,890 | ||||||
Total liabilities | 415,778 | 320,064 | ||||||
Commitments and contingencies (Note 11) | 0 | 0 | ||||||
Convertible preferred stock, $0.0001 par value; 9,854,432 shares issued and outstanding as of June 30, 2021 and December 31, 2020 (Note 12) | 98,544 | 98,544 | ||||||
Stockholders’ deficit | ||||||||
Common stock, $0.00005 par value; 29,281,514 shares issued and outstanding as of June 30, 2021 and December 31, 2020 | 1 | 1 | ||||||
Additional paid-in capital | 11,456 | 11,456 | ||||||
Accumulated other comprehensive loss | (886 | ) | (982 | ) | ||||
Accumulated deficit | (243,215 | ) | (175,846 | ) | ||||
Less: Treasury stock | (174,720 | ) | (174,720 | ) | ||||
Total stockholders’ deficit | (407,364 | ) | (340,091 | ) | ||||
Total liabilities, convertible preferred stock and stockholders’ deficit | $ | 106,958 | $ | 78,517 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues: | ||||||||||||||||
Franchise (Related party: $50 and $137 for the three months ended June 30, 2021 and 2020, respectively, and $100 and $234 for the six months ended June 30, 2021 and 2020, respectively) | $ | 20,581 | $ | 12,061 | $ | 33,737 | $ | 25,699 | ||||||||
Equipment and merchandise (Related party: $0 and $112 for the three months ended June 30, 2021 and 2020, respectively, and $0 and $112 for the six months ended June 30, 2021 and 2020, respectively) | 6,251 | 5,397 | 11,286 | 16,601 | ||||||||||||
Total revenues | 26,832 | 17,458 | 45,023 | 42,300 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of franchise revenue (Related party $0 and $0 for the three months ended June 30, 2021 and 2020, respectively, and $0 and $12 for the six months ended June 30, 2021 and 2020, respectively) | 1,462 | 1,410 | 2,676 | 4,594 | ||||||||||||
Cost of equipment and merchandise (Related party: $1,203 and $265 for the three months ended June 30, 2021 and 2020, respectively, and $2,144 and $1,316 for the six months ended June 30, 2021 and 2020, respectively) | 3,739 | 2,832 | 6,920 | 9,163 | ||||||||||||
Selling, general and administrative expenses | 18,562 | 7,633 | 35,390 | 21,624 | ||||||||||||
Total costs and operating expenses | 23,763 | 11,875 | 44,986 | 35,381 | ||||||||||||
Income (losses) from operations | 3,069 | 5,583 | 37 | 6,919 | ||||||||||||
Loss on derivative liabilities | 23,098 | — | 48,603 | — | ||||||||||||
Interest expense, net | 8,853 | 421 | 17,268 | 799 | ||||||||||||
Other expense (income), net | 329 | (2,258 | ) | 620 | (577 | ) | ||||||||||
(Loss) income before income taxes | (29,211 | ) | 7,420 | (66,454 | ) | 6,697 | ||||||||||
Provision for income taxes | 1,313 | 1,552 | 915 | 1,562 | ||||||||||||
Net (loss) income | $ | (30,524 | ) | $ | 5,868 | $ | (67,369 | ) | $ | 5,135 | ||||||
Other comprehensive income (loss) | ||||||||||||||||
Unrealized gain (loss) on interest rate swap, net of tax | 132 | 123 | 203 | (727 | ) | |||||||||||
Foreign currency translation adjustment, net of tax | (75 | ) | (1,845 | ) | (107 | ) | (564 | ) | ||||||||
Comprehensive (loss) income | $ | (30,467 | ) | $ | 4,146 | $ | (67,273 | ) | $ | 3,844 | ||||||
Per share data: | ||||||||||||||||
Net (loss) income per common share | ||||||||||||||||
Basic and diluted | (1.04 | ) | 0.07 | (2.30 | ) | 0.06 | ||||||||||
Weighted average common shares outstanding | ||||||||||||||||
Basic and diluted | 29,281,514 | 58,000,000 | 29,281,514 | 58,000,000 |
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 | |||||||||||||||
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’ Deficit | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720 | ) | $ | (943 | ) | $ | (212,691 | ) | $ | (376,897 | ) | ||||||||||||||||
Net loss | — | — | — | — | — | — | — | (30,524 | ) | (30,524 | ) | |||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of tax | — | — | — | — | — | — | 132 | — | 132 | |||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (75 | ) | — | (75 | ) | |||||||||||||||||||||||||
Balances at June 30, 2021 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720 | ) | $ | (886 | ) | $ | (243,215 | ) | $ | (407,364 | ) | ||||||||||||||||
Convertible Preferred Stock | Common Stock | Additional Paid- In Capital | Treasury Stock | Accumulated other comprehensive loss | Accumulated deficit | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (110 | ) | $ | (151,290 | ) | $ | (151,397 | ) | |||||||||||||||||
Net income | — | — | — | — | — | — | — | 5,868 | 5,868 | |||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax | — | — | — | — | — | — | 123 | — | 123 | |||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (1,845 | ) | — | (1,845 | ) | |||||||||||||||||||||||||
Balances at June 30, 2020 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (1,832 | ) | $ | (145,422 | ) | $ | (147,251 | ) | |||||||||||||||||
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 at December 31, 2020 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720 | ) | $ | (982 | ) | $ | (175,846 | ) | $ | (340,091 | ) | ||||||||||||||||
Net loss | — | — | — | — | — | — | — | (67,369 | ) | (67,369 | ) | |||||||||||||||||||||||||
Unrealized gain on interest rate swap, net of tax | — | — | — | — | — | — | 203 | — | 203 | |||||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (107 | ) | — | (107 | ) | |||||||||||||||||||||||||
Balances at June 30, 2021 | 9,854,432 | $ | 98,544 | 29,281,514 | $ | 1 | $ | 11,456 | $ | (174,720 | ) | $ | (886 | ) | $ | (243,215 | ) | $ | (407,364 | ) | ||||||||||||||||
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 at December 31, 2019 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (541 | ) | $ | (150,557 | ) | $ | (151,095 | ) | |||||||||||||||||
Net income | — | — | — | — | — | — | — | 5,135 | 5,135 | |||||||||||||||||||||||||||
Unrealized loss on interest rate swap, net of tax | — | — | — | — | — | — | (727 | ) | — | (727 | ) | |||||||||||||||||||||||||
Cumulative translation adjustment, net of tax | — | — | — | — | — | — | (564 | ) | — | (564 | ) | |||||||||||||||||||||||||
Balances at June 30, 2020 | 11,000,000 | $ | 110,000 | 58,000,000 | $ | 3 | $ | — | $ | — | $ | (1,832 | ) | $ | (145,422 | ) | $ | (147,251 | ) | |||||||||||||||||
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) |
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 | |||||||||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net (loss) income | $ | (67,369 | ) | $ | 5,135 | |||
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||||||||
Depreciation | 130 | 216 | ||||||
Amortization of intangible assets | 1,247 | 261 | ||||||
Amortization of deferred costs | 725 | 685 | ||||||
Provision for inventories | 149 | — | ||||||
Accretion of debt discount | 2,983 | — | ||||||
Loss on derivative liabilities | 48,603 | — | ||||||
Paid in kind interest accrual | 12,851 | — | ||||||
Bad debt expense | 3,514 | 1,917 | ||||||
Gain and loss on disposal of property and equipment | 6 | — | ||||||
Deferred income taxes | — | 13 | ||||||
Unrealized foreign currency transaction gains (losses) | 185 | (556 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Due from related parties | 549 | 163 | ||||||
Accounts receivable, net | (6,715 | ) | (2,576 | ) | ||||
Inventories | (2,125 | ) | (3,001 | ) | ||||
Prepaid expenses | (934 | ) | 172 | |||||
Other current assets | (3,722 | ) | (1,989 | ) | ||||
Deferred costs | (1,280 | ) | (2,590 | ) | ||||
Other long-term assets | (7,234 | ) | (2,499 | ) | ||||
Accounts payable | 5,351 | (1,410 | ) | |||||
Deferred revenue | 3,912 | (6,354 | ) | |||||
Interest payable | (107 | ) | 171 | |||||
Income tax payable | 702 | 1,633 | ||||||
Other long-term liabilities | 1,000 | 68 | ||||||
Net cash used in operating activities | (7,579 | ) | (10,541 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (345 | ) | (302 | ) | ||||
Disposal of property and equipment | 19 | 2 | ||||||
Purchases of intangible assets | (576 | ) | (577 | ) | ||||
Net cash used in investing activities | (902 | ) | (877 | ) | ||||
Cash flows from financing activities | ||||||||
Borrowings under revolving facility | — | 8,145 | ||||||
Repayments under term facility | — | (1,500 | ) | |||||
Repayment of 1st Lien Loan | (2,625 | ) | — | |||||
Proceeds from Paycheck Protection Program loan | — | 2,065 | ||||||
Deferred offering costs | — | (440 | ) | |||||
Net cash (used in) provided by financing activities | (2,625 | ) | 8,270 | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 300 | (291 | ) | |||||
Net decrease in cash, cash equivalents, and restricted cash | (10,806 | ) | (3,439 | ) | ||||
Cash, cash equivalents, and restricted cash at beginning of period | 28,967 | 8,267 | ||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 18,161 | $ | 4,828 | ||||
Supplemental disclosures of cash flow information | ||||||||
Income taxes paid | $ | — | $ | 632 | ||||
Interest paid | 1,109 | 600 | ||||||
Supplemental disclosure of noncash financing and investing activities: | ||||||||
Liability assumed on intellectual property license agreement with FW SPV II LLC (Note 4) | 20,790 | — | ||||||
Intangible assets included in accounts payable and accrued expenses | — | 46 | ||||||
Deferred offering costs included in accounts payable and accrued expenses | 2,248 | 1,531 |
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 |
As of June 30, | ||||||||
2021 | 2020 | |||||||
Cash and cash equivalents | $ | 16,604 | $ | 4,828 | ||||
Restricted cash | 1,557 | — | ||||||
Total cash, cash equivalents, and restricted cash | $ | 18,161 | $ | 4,828 | ||||
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 June 30, | For the Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Balance at beginning of period | $ | 4,753 | $ | 2,623 | $ | 5,746 | $ | 1,069 | ||||||||
Provisions for bad debts, included in selling, general and administrative | 1,848 | (8 | ) | 3,514 | 1,917 | |||||||||||
Uncollectible receivables written off | (1,345 | ) | (420 | ) | (4,004 | ) | (791 | ) | ||||||||
Balance at end of period | $ | 5,256 | $ | 2,195 | $ | 5,256 | $ | 2,195 | ||||||||
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 | June 30, 2021 | December 31, 2020 | ||||||||||
(years) | ||||||||||||
Vehicles | 5 | $ | 43 | $ | 43 | |||||||
Furniture and fixtures | 7 | 179 | 179 | |||||||||
Office and other equipment | 5 | 694 | 720 | |||||||||
Leasehold improvements | Lesser of lease term or useful life | | 827 | 675 | ||||||||
1,743 | 1,617 | |||||||||||
Less accumulated depreciation | (848 | ) | (733 | ) | ||||||||
Total property and equipment, net | $ | 895 | $ | 884 | ||||||||
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 June 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 | $ | 3,225 | $ | 1,663 | $ | 1,562 | $ | 2,767 | $ | 1,352 | $ | 1,415 | |||||||||||||||
Trademarks | n/a | 343 | — | 343 | 343 | — | 343 | |||||||||||||||||||||
FW Intangible Asset | 5 | $ | 20,790 | $ | 843 | $ | 19,947 | $ | — | $ | — | $ | — | |||||||||||||||
Total intangible assets, net | $ | 24,358 | $ | 2,506 | $ | 21,852 | $ | 3,110 | $ | 1,352 | $ | 1,758 | ||||||||||||||||
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 | |||||
Remainder of 2022 | $ | 2,895 | |||
2023 | 3,537 | ||||
2024 | 3,180 | ||||
2025 | 2,812 | ||||
2026 | 2,787 | ||||
Thereafter | 9,652 | ||||
Total | $ | 24,863 |
Future Amortization | ||||
Remainder of 2021 | $ | 2,502 | ||
2022 | 4,875 | |||
2023 | 4,525 | |||
2024 | 4,213 | |||
2025 | 4,158 | |||
Thereafter | 1,236 | |||
Total | $ | 21,509 | ||
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 | (7,016) | ||||
Increase | 10,571 | ||||
Balance at March 31, 2021 | $ | 17,650 |
Deferred Revenue | ||||
Balance at December 31, 2019 | $ | 23,941 | ||
Revenue Recognized | (7,154 | ) | ||
Increase | 6,398 | |||
Balance at March 31, 2020 | $ | 23,185 | ||
Revenue Recognized | (12,960 | ) | ||
Increase | 6,915 | |||
Balance at June 30, 2020 | $ | 17,140 | ||
Deferred Revenue | ||||
Balance at December 31, 2020 | $ | 14,095 | ||
Revenue Recognized | (7,016 | ) | ||
Increase | 10,571 | |||
Balance at March 31, 2021 | $ | 17,650 | ||
Revenue Recognized | $ | (4,507 | ) | |
Increase | $ | 4,822 | ||
Balance at June 30, 2021 | $ | 17,965 | ||
June 30, 2021 | December 31, 2020 | |||||||
Revolving Facility | $ | 7,000 | $ | 7,000 | ||||
First Lien Term Loan | 31,035 | 33,688 | ||||||
Second Lien Term Loan | 137,443 | 128,882 | ||||||
Convertible Note | 106,276 | 101,985 | ||||||
PPP Loan | 2,063 | 2,063 | ||||||
Total debt, excluding deferred financing costs and discounts | 283,817 | 273,618 | ||||||
Unamortized financing costs | (4,746 | ) | (5,078 | ) | ||||
Unamortized debt discount | (23,740 | ) | (26,507 | ) | ||||
Total debt | $ | 255,331 | $ | 242,033 | ||||
Remainder of 2021 | $ | 3,198 | ||
2022 | 35,560 | |||
2023 | 571 | |||
2024 | 576 | |||
2025 | 243,912 | |||
Total principal payments | 283,817 | |||
Deferred financing costs, net of accumulated amortization | (4,746 | ) | ||
Discount on debt | (23,740 | ) | ||
Net carrying value | $ | 255,331 | ||
As of June 30, 2021 | As of December 31, 2020 | |||||||||||||||
Derivative Liabilities | Derivative Liabilities | |||||||||||||||
Current | Long-Term | Current | Long-Term | |||||||||||||
Fair Value of Derivatives : | ||||||||||||||||
Interest Rate Swap | $ | 0— | $ | (457 | ) | $ | 0— | $ | (660 | ) | ||||||
Total Fair Value | $ | 0— | $ | (457 | ) | $ | 0— | $ | (660 | ) | ||||||
As of June 30, 2021 | ||||||||||||||||
Risk-free rate | Volatility | Term (years) | Dividend yield | |||||||||||||
Liquidity event | 0.05%-0.72% | 39.2 | % | 2.50 | 0 | |||||||||||
QPO event | 0.05%-0.72% | 16.5 | % | 0.04 | 0 | |||||||||||
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 |
Fair Value of Embedded Derivative Liabilities (Level 3 Inputs): | ||||
Balance at January 1, 202 0 | $ | 0— | ||
Initial measurement on October 6, 202 0 | (27,822 | ) | ||
Change in fair value | (8,818 | ) | ||
Balance at December 31, 2020 | (36,640 | ) | ||
Change in fair value | (25,505 | ) | ||
Balance at March 31, 2021 | (62,145 | ) | ||
Change in fair value | (23,098 | ) | ||
Balance at June 30, 2021 | $ | (85,243 | ) | |
As of June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities | ||||||||||||||||
Interest rate swap | $ | 0— | $ | (457 | ) | $ | 0— | $ | (457 | ) | ||||||
Derivative liability | 0— | 0— | (85,243 | ) | (85,243 | ) | ||||||||||
Total Liabilities | $ | 0— | $ | (457 | ) | $ | (85,243 | ) | $ | (85,700 | ) | |||||
As of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities | ||||||||||||||||
Interest rate swap | $ | 0— | $ | (660 | ) | $ | 0— | $ | (660 | ) | ||||||
Derivative liability | 0— | (36,640 | ) | (36,640 | ) | |||||||||||
Total Liabilities | $ | 0— | $ | (660 | ) | $ | (36,640 | ) | $ | (37,300 | ) | |||||
Operating Leases | |||||
Remainder of 2022 | $ | 2,208 | |||
2023 | 3,557 | ||||
2024 | 2,852 | ||||
2025 | 2,749 | ||||
2025 | 2,531 | ||||
Thereafter | 10,228 | ||||
Total Minimum Lease Payments | $ | 24,125 |
Operating Leases | ||||
Remainder of 2021 | $ | 752 | ||
2022 | 2,249 | |||
2023 | 2,185 | |||
2024 | 2,053 | |||
2025 | 2,001 | |||
Thereafter | 6,850 | |||
Total Minimum Lease Payments | $ | 16,090 | ||
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 | |||||||||
$1.0 billion | 912,882 | |||||||||
$1.5 billion | 912,882 | |||||||||
$2.0 billion | 912,884 |
Weighted-average fair value (1) | $ | 4.14 | ||||||
Expected volatility (2) | 26.3% - 29.20% | |||||||
Risk-free interest rate (3) | 0.92% - 2.55% | |||||||
Expected dividend yield (4) | — | |||||||
Expected term in years | 5.46 - 6.25 |
(1) | The weighted-average fair value based on stock options granted during the period. | ||||
(2) | Selected volatility is relevered equity volatility based on median asset volatility. | ||||
(3) | The risk-free interest rate was estimated based on the yield on U.S. Treasury scrips. | ||||
(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 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 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 | |||||||
Outstanding as of January 1, 2022 | 117 | $ | 14.60 | |||||
Granted | — | — | ||||||
Vested | (8) | 15.15 | ||||||
Forfeited | (5) | 15.15 | ||||||
Outstanding as of March 31, 2022 | 104 | $ | 15.09 |
Scenario: | IPO | Sale | ||||||
Probability | 50.0 | % | 50.0 | % | ||||
Term (years) | 0.75 | 3.50 | ||||||
Remaining Term of the RSUs (years) | 5.00 | 3.50 | ||||||
Dividend Yield | 0— | % | 0— | % | ||||
Risk-free rate | 2.4 | % | 2.4 | % | ||||
Volatility | 35.0 | % | 35.0 | % |
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 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Numerator: | ||||||||||||||||
Net (loss) income | $ | (30,524 | ) | $ | 5,868 | $ | (67,369 | ) | $ | 5,135 | ||||||
Net (loss) income allocated to participating preferred shares | $ | — | $ | 1,614 | $ | — | $ | 1,412 | ||||||||
Net (loss) income attributable to common stockholders—basic and diluted | $ | (30,524 | ) | $ | 4,254 | $ | (67,369 | ) | $ | 3,723 | ||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding—basic and diluted | 29,281,514 | 58,000,000 | 29,281,514 | 58,000,000 | ||||||||||||
Net (loss) income per common share: | ||||||||||||||||
Basic and diluted | $ | (1.04 | ) | $ | 0.07 | $ | (2.30 | ) | $ | 0.06 | ||||||
Anti-dilutive securities excluded from diluted loss per common share: | ||||||||||||||||
Convertible preferred stock | 9,854,432 | — | 9,854,432 | — | ||||||||||||
Restricted stock units | 2,738,648 | — | 2,738,648 | — | ||||||||||||
Convertible notes | 5,856,302 | — | 5,856,302 | — | ||||||||||||
Total | 18,449,382 | — | 18,449,382 | — | ||||||||||||
For the Three Months Ended June 30, 2021 | For the Three Months Ended June 30, 2020 | 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 | Revenue | Cost of revenue | Gross profit | Revenue | Cost of revenue | Gross profit | ||||||||||||||||||||||||||||||||||||||||||||||||
United States: | United States: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise | $ | 11,741 | $ | 1,308 | $ | 10,433 | $ | 7,461 | $ | 1,158 | $ | 6,303 | Franchise | $ | 12,401 | $ | 1,015 | $ | 11,386 | $ | 7,015 | $ | 1,022 | $ | 5,993 | ||||||||||||||||||||||||||||||||||
Equipment and merchandise | 4,523 | 2,437 | 2,086 | 1,383 | 678 | 705 | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 16,264 | $ | 3,745 | $ | 12,519 | $ | 8,844 | $ | 1,836 | $ | 7,008 | ||||||||||||||||||||||||||||||||||||||||||||||||
Australia: | Australia: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise | $ | 4,420 | $ | 94 | $ | 4,326 | $ | 2,089 | $ | 173 | $ | 1,916 | Franchise | $ | 3,448 | $ | 119 | $ | 3,329 | $ | 3,289 | $ | 178 | $ | 3,111 | ||||||||||||||||||||||||||||||||||
Equipment and merchandise | 689 | 514 | 175 | 960 | 902 | 58 | Equipment and merchandise | 2,130 | 1,733 | 397 | 839 | 807 | 32 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 5,109 | $ | 608 | $ | 4,501 | $ | 3,049 | $ | 1,075 | $ | 1,974 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 5,578 | $ | 1,852 | $ | 3,726 | $ | 4,128 | $ | 985 | $ | 3,143 | ||||||||||||||||||||||||||||||||||||||||||||||||
Rest of World: | Rest of World: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise | $ | 4,420 | $ | 60 | $ | 4,360 | $ | 2,511 | $ | 79 | $ | 2,432 | Franchise | $ | 4,011 | $ | 97 | $ | 3,914 | $ | 2,852 | $ | 14 | $ | 2,838 | ||||||||||||||||||||||||||||||||||
Equipment and merchandise | 1,039 | 788 | 251 | 3,054 | 1,252 | 1,802 | Equipment and merchandise | 5,170 | 1,456 | 3,714 | 1,715 | 896 | 819 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 9,181 | $ | 1,553 | $ | 7,628 | $ | 4,567 | $ | 910 | $ | 3,657 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 5,459 | $ | 848 | $ | 4,611 | $ | 5,565 | $ | 1,331 | $ | 4,234 | ||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated: | Consolidated: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Franchise | $ | 20,581 | $ | 1,462 | $ | 19,119 | $ | 12,061 | $ | 1,410 | $ | 10,651 | Franchise | $ | 19,860 | $ | 1,231 | $ | 18,629 | $ | 13,156 | $ | 1,214 | $ | 11,942 | ||||||||||||||||||||||||||||||||||
Equipment and merchandise | 6,251 | 3,739 | 2,512 | 5,397 | 2,832 | 2,565 | 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 | ||||||||||||||||||||||||||||||||||||||||||||||||
$ | 26,832 | $ | 5,201 | $ | 21,631 | $ | 17,458 | $ | 4,242 | $ | 13,216 | ||||||||||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2021 | For the Six Months Ended June 30, 2020 | |||||||||||||||||||||||
Revenue | Cost of revenue | Gross profit | Revenue | Cost of revenue | Gross profit | |||||||||||||||||||
United States: | ||||||||||||||||||||||||
Franchise | $ | 18,756 | $ | 2,330 | $ | 16,426 | $ | 15,709 | $ | 4,089 | $ | 11,620 | ||||||||||||
Equipment and merchandise | 7,004 | 3,915 | 3,089 | 7,462 | 3,704 | 3,758 | ||||||||||||||||||
$ | 25,760 | $ | 6,245 | $ | 19,515 | $ | 23,171 | $ | 7,793 | $ | 15,378 | |||||||||||||
Australia: | ||||||||||||||||||||||||
Franchise | $ | 7,709 | $ | 272 | $ | 7,437 | $ | 4,840 | $ | 332 | $ | 4,508 | ||||||||||||
Equipment and merchandise | 1,528 | 1,321 | 207 | 2,478 | 2,184 | 294 | ||||||||||||||||||
$ | 9,237 | $ | 1,593 | $ | 7,644 | $ | 7,318 | $ | 2,516 | $ | 4,802 | |||||||||||||
Rest of World: | ||||||||||||||||||||||||
Franchise | $ | 7,272 | $ | 74 | $ | 7,198 | $ | 5,150 | $ | 173 | $ | 4,977 | ||||||||||||
Equipment and merchandise | 2,754 | 1,684 | 1,070 | 6,661 | 3,275 | 3,386 | ||||||||||||||||||
$ | 10,026 | $ | 1,758 | $ | 8,268 | $ | 11,811 | $ | 3,448 | $ | 8,363 | |||||||||||||
Consolidated: | ||||||||||||||||||||||||
Franchise | $ | 33,737 | $ | 2,676 | $ | 31,061 | $ | 25,699 | $ | 4,594 | $ | 21,105 | ||||||||||||
Equipment and merchandise | 11,286 | 6,920 | 4,366 | 16,601 | 9,163 | 7,438 | ||||||||||||||||||
$ | 45,023 | $ | 9,596 | $ | 35,427 | $ | 42,300 | $ | 13,757 | $ | 28,543 | |||||||||||||
For the Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Segment gross profit | $ | 21,631 | $ | 13,216 | ||||
Selling, general and administrative expenses | 18,562 | 7,633 | ||||||
Loss on derivative liabilities | 23,098 | — | ||||||
Interest expense, net | 8,853 | 421 | ||||||
Other expense (income), net | 329 | (2,258 | ) | |||||
Provision for income taxes | 1,313 | 1,552 | ||||||
Net (loss) income | $ | (30,524 | ) | $ | 5,868 | |||
For the Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Segment gross profit | $ | 35,427 | $ | 28,543 | ||||
Selling, general and administrative expenses | 35,390 | 21,624 | ||||||
Loss on derivative liabilities | 48,603 | — | ||||||
Interest expense, net | 17,268 | 799 | ||||||
Other expense (income), net | 620 | (577 | ) | |||||
Provision for income taxes | 915 | 1,562 | ||||||
Net (loss) income | $ | (67,369 | ) | $ | 5,135 | |||
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 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 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 June 30, 2021 | Three Months Ended June 30, 2020 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | |||||||||||||||||||||||||||||||||||||
Total Franchises Sold, beginning of period | 941 | 676 | 630 | 2,247 | 826 | 653 | 480 | 1,959 | 814 | 643 | 435 | 1,892 | ||||||||||||||||||||||||||||||||||||
New Franchises Sold, net(a) | 438 | 109 | 7 | 554 | 20 | 14 | 66 | 100 | 117 | 36 | 199 | 352 | ||||||||||||||||||||||||||||||||||||
Total Franchises Sold, end of period | 1,379 | 785 | 637 | 2,801 | 846 | 667 | 546 | 2,059 | 931 | 679 | 634 | 2,244 |
Year Ended December 31, 2021 | Year Ended December 31, 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(a) | 779 | 124 | 154 | 1,057 | 117 | 36 | 199 | 352 | |||||||||||||||||||||||||||||||||||||||
Total Franchises Sold, end of period | 1,710 | 803 | 788 | 3,301 | 931 | 679 | 634 | 2,244 | |||||||||||||||||||||||||||||||||||||||
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 June 30, 2021 | Three Months Ended June 30, 2020 | Year Ended December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||
U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | U.S. | Australia | ROW | Total | |||||||||||||||||||||||||||||||||||||
Total Studios, beginning of period | 518 | 617 | 352 | 1,487 | 376 | 593 | 273 | 1,242 | 320 | 581 | 239 | 1,140 | ||||||||||||||||||||||||||||||||||||
Initial Studio Openings, net | 38 | 11 | 19 | 68 | 20 | 2 | 11 | 33 | 166 | 35 | 96 | 297 | ||||||||||||||||||||||||||||||||||||
Total Studios, end of period | 556 | 628 | 371 | 1,555 | 396 | 595 | 284 | 1,275 | 486 | 616 | 335 | 1,437 |
Monthly System-wide Sales for the 18 Months Ended June 30, 2021 ($ in millions) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JAN | FEB | MAR | APR | MAY | JUNE | JULY | AUG | SEP | OCT | NOV | DEC | JAN | FEB | MAR | APR | MAY | JUN | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 10 | $ | 10 | $ | 8 | $ | 3 | $ | 4 | $ | 5 | $ | 6 | $ | 7 | $ | 7 | $ | 9 | $ | 9 | $ | 8 | $ | 10 | $ | 9 | $ | 12 | $ | 12 | $ | 14 | $ | 15 | ||||||||||||||||||||||||||||||||||||
Australia | 19 | 19 | 16 | 4 | 5 | 11 | 13 | 14 | 14 | 16 | 17 | 17 | 18 | 16 | 18 | 17 | 17 | 15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
ROW | 8 | 7 | 5 | 1 | 1 | 2 | 3 | 5 | 5 | 6 | 5 | 4 | 4 | 3 | 5 | 4 | 4 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 36 | $ | 36 | $ | 29 | $ | 9 | $ | 10 | $ | 18 | $ | 23 | $ | 25 | $ | 26 | $ | 30 | $ | 31 | $ | 29 | $ | 31 | $ | 29 | $ | 35 | $ | 33 | $ | 35 | $ | 35 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Other Data: | (dollars in thousands) | |||||||||||||||
EBITDA | (18,908 | ) | 8,449 | (47,084 | ) | 8,658 | ||||||||||
Adjusted EBITDA | 10,676 | 10,026 | 15,946 | 12,640 | ||||||||||||
Adjusted EBITDA margin (1) | 39.8 | % | 57.4 | % | 35.4 | % | 29.9 | % | ||||||||
Same store sales growth (2) | 126.0 | % | (65.0 | )% | 19.5 | % | (32.1 | )% |
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Net (loss) income | (30,524 | ) | 5,868 | (67,369 | ) | 5,135 | ||||||||||
Net interest expense | 8,853 | 421 | 17,268 | 799 | ||||||||||||
Provision for income taxes | 1,313 | 1,552 | 915 | 1,562 | ||||||||||||
Depreciation and amortization | 1,173 | 249 | 1,377 | 477 | ||||||||||||
Amortization of deferred costs | 277 | 359 | 725 | 685 | ||||||||||||
EBITDA | (18,908 | ) | 8,449 | (47,084 | ) | 8,658 | ||||||||||
Sales tax reserve (a) | 147 | 12 | 247 | 515 | ||||||||||||
Transaction fees (b) | 1,749 | 1,214 | 3,331 | 2,656 | ||||||||||||
Loss (gain) on derivative liability (c) | 23,098 | — | 48,603 | — | ||||||||||||
Certain legal costs and settlements (d) | 886 | 351 | 3,423 | 781 | ||||||||||||
Forgiveness of loans to directors (e) | — | — | — | — | ||||||||||||
Recruitment (f) | 53 | — | 53 | — | ||||||||||||
Inventory write-off (g) | — | — | — | — | ||||||||||||
COVID concessions (h) | 1,851 | — | 4,333 | — | ||||||||||||
Relocation (i) | 183 | — | 252 | 30 | ||||||||||||
Development costs (j) | 1,617 | — | 2,788 | — | ||||||||||||
Adjusted EBITDA | 10,676 | 10,026 | 15,946 | 12,640 | ||||||||||||
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 June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Revenues: | ||||||||||||||||
Franchise (Related party: $50 and $137 for the three months ended June 30, 2021 and 2020, respectively, and $100 and $234 for the six months ended June 30, 2021 and 2020, respectively) | $ | 20,581 | $ | 12,061 | $ | 33,737 | $ | 25,699 | ||||||||
Equipment and merchandise (Related party: $0 and $112 for the three months ended June 30, 2021 and 2020, respectively, and $0 and $112 for the six months ended June 30, 2021 and 2020, respectively) | 6,251 | 5,397 | 11,286 | 16,601 | ||||||||||||
Total revenues | 26,832 | 17,458 | 45,023 | 42,300 | ||||||||||||
Costs and operating expenses: | ||||||||||||||||
Cost of franchise revenue (Related party $0 and $0 for the three months ended June 30, 2021 and 2020, respectively, and $0 and $12 for the six months ended June 30, 2021 and 2020, respectively) | 1,462 | 1,410 | 2,676 | 4,594 | ||||||||||||
Cost of equipment and merchandise (Related party: $1,203 and $265 for the three months ended June 30, 2021 and 2020, respectively, and $2,144 and $1,316 for the six months ended June 30, 2021 and 2020, respectively) | 3,739 | 2,832 | 6,920 | 9,163 | ||||||||||||
Selling, general and administrative expenses | 18,562 | 7,633 | 35,390 | 21,624 | ||||||||||||
Forgiveness of loans to directors | — | — | — | — | ||||||||||||
Total costs and operating expenses | 23,763 | 11,875 | 44,986 | 35,381 | ||||||||||||
Income (losses) from operations | 3,069 | 5,583 | 37 | 6,919 | ||||||||||||
Loss on derivative liabilities | 23,098 | — | 48,603 | — | ||||||||||||
Interest expense, net | 8,853 | 421 | 17,268 | 799 | ||||||||||||
Other expense (income), net | 329 | (2,258 | ) | 620 | (577 | ) | ||||||||||
(Loss) income before income taxes | (29,211 | ) | 7,420 | (66,454 | ) | 6,697 | ||||||||||
Provision for income taxes | 1,313 | 1,552 | 915 | 1,562 | ||||||||||||
Net (loss) income | $ | (30,524 | ) | $ | 5,868 | $ | (67,369 | ) | $ | 5,135 | ||||||
Three Months Ended March 31, | Change | ||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Change | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Franchise | Franchise | ||||||||||||||||||||||||||||||||||||||
USA | $ | 11,741 | $ | 7,461 | $ | 4,280 | 57 | % | USA | $ | 12,401 | $ | 7,015 | $ | 5,386 | 77 | % | ||||||||||||||||||||||
Australia | 4,420 | 2,089 | 2,331 | 112 | % | Australia | 3,448 | 3,289 | 159 | 5 | % | ||||||||||||||||||||||||||||
ROW | 4,420 | 2,511 | 1,909 | 76 | % | ROW | 4,011 | 2,852 | 1,159 | 41 | % | ||||||||||||||||||||||||||||
Total franchise revenue | $ | 20,581 | $ | 12,061 | $ | 8,520 | 71 | % | Total franchise revenue | $ | 19,860 | $ | 13,156 | $ | 6,704 | 51 | % | ||||||||||||||||||||||
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 |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Franchise | ||||||||||||||||
USA | $ | 18,756 | $ | 15,709 | $ | 3,047 | 19 | % | ||||||||
Australia | 7,709 | 4,840 | 2,869 | 59 | % | |||||||||||
ROW | 7,272 | 5,150 | 2,122 | 41 | % | |||||||||||
Total franchise revenue | $ | 33,737 | $ | 25,699 | $ | 8,038 | 31 | % | ||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | Stores | % | |||||||||||||
(in units) | ||||||||||||||||
Number of studios open | ||||||||||||||||
USA | $ | 556 | $ | 396 | 160 | 40 | % | |||||||||
Australia | 628 | 595 | 33 | 6 | % | |||||||||||
ROW | 371 | 284 | 87 | 31 | % | |||||||||||
Total studios open | $ | 1,555 | 1,275 | 280 | 22 | % | ||||||||||
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 June 30, | Change | 2022 | 2021 | $ | % | ||||||||||||||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Equipment and merchandise | Equipment and merchandise | ||||||||||||||||||||||||||||||||||||||
USA | $ | 4,523 | $ | 1,383 | $ | 3,140 | 227 | % | USA | $ | 22,848 | $ | 2,481 | $ | 20,367 | 821 | % | ||||||||||||||||||||||
Australia | 689 | 960 | (271 | ) | (28 | )% | Australia | 2,130 | 839 | 1,291 | 154 | % | |||||||||||||||||||||||||||
ROW | 1,039 | 3,054 | (2,015 | ) | (66 | )% | ROW | 5,170 | 1,715 | 3,455 | 201 | % | |||||||||||||||||||||||||||
Total equipment and merchandise | $ | 6,251 | $ | 5,397 | $ | 854 | 16 | % | |||||||||||||||||||||||||||||||
Total equipment and merchandise revenue | Total equipment and merchandise revenue | $ | 30,148 | $ | 5,035 | $ | 25,113 | 499 | % |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Equipment and merchandise | ||||||||||||||||
USA | $ | 7,004 | $ | 7,462 | $ | (458 | ) | (6 | )% | |||||||
Australia | 1,528 | 2,478 | (950 | ) | (38 | )% | ||||||||||
ROW | 2,754 | 6,661 | (3,907 | ) | (59 | )% | ||||||||||
Total equipment and merchandise | $ | 11,286 | $ | 16,601 | $ | (5,315 | ) | (32 | )% | |||||||
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Franchise | |||||||||||||||||||||||
USA | $ | 1,015 | $ | 1,022 | $ | (7) | (1) | % | |||||||||||||||
Australia | 119 | 178 | (59) | (33) | % | ||||||||||||||||||
ROW | 97 | 14 | 83 | 593 | % | ||||||||||||||||||
Total cost of franchise revenue | $ | 1,231 | $ | 1,214 | $ | 17 | 1 | % | |||||||||||||||
Percentage of franchise revenue | 6 | % | 9 | % |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Franchise | ||||||||||||||||
USA | $ | 1,308 | $ | 1,158 | $ | 150 | 13 | % | ||||||||
Australia | 94 | 173 | (79 | ) | (46 | )% | ||||||||||
ROW | 60 | 79 | (19 | ) | (24 | )% | ||||||||||
Total cost of franchise revenue | $ | 1,462 | $ | 1,410 | $ | 52 | 4 | % | ||||||||
Percentage of franchise revenue | 7 | % | 12 | % |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Franchise | ||||||||||||||||
USA | $ | 2,330 | $ | 4,089 | $ | (1,759 | ) | (43 | )% | |||||||
Australia | 272 | 332 | (60 | ) | (18 | )% | ||||||||||
ROW | 74 | 173 | (99 | ) | (57 | )% | ||||||||||
Total cost of franchise revenue | $ | 2,676 | $ | 4,594 | $ | (1,918 | ) | (42 | )% | |||||||
Percentage of franchise revenue | 8 | % | 18 | % |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Equipment and merchandise | ||||||||||||||||
USA | $ | 2,437 | $ | 678 | $ | 1,759 | 259 | % | ||||||||
Australia | 514 | 902 | (388 | ) | (43 | )% | ||||||||||
ROW | 788 | 1,252 | (464 | ) | (37 | )% | ||||||||||
Total equipment and merchandise cost of revenue | $ | 3,739 | $ | 2,832 | $ | 907 | 32 | % | ||||||||
Percentage of equipment and merchandise revenue | 60 | % | 52 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Equipment and merchandise | |||||||||||||||||||||||
USA | $ | 7,754 | $ | 1,478 | $ | 6,276 | 425 | % | |||||||||||||||
Australia | 1,733 | 807 | 926 | 115 | % | ||||||||||||||||||
ROW | 1,456 | 896 | 560 | 63 | % | ||||||||||||||||||
Total cost of equipment and merchandise revenue | $ | 10,943 | $ | 3,181 | $ | 7,762 | 244 | % | |||||||||||||||
Percentage of equipment and merchandise revenue | 36 | % | 63 | % |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Equipment and merchandise | ||||||||||||||||
USA | $ | 3,915 | $ | 3,704 | $ | 211 | 6 | % | ||||||||
Australia | 1,321 | 2,184 | (863 | ) | (40 | )% | ||||||||||
ROW | 1,684 | 3,275 | (1,591 | ) | (49 | )% | ||||||||||
Total equipment and merchandise cost of revenue | $ | 6,920 | $ | 9,163 | $ | (2,243 | ) | (24 | )% | |||||||
Percentage of equipment and merchandise revenue | 61 | % | 55 | % |
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 June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general and administrative expenses | 18,562 | 7,633 | $ | 10,929 | 143 | % | ||||||||||
Percentage of revenue | 69 | % | 44 | % |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Selling, general and administrative expenses | 35,390 | 21,624 | $ | 13,766 | 64 | % | ||||||||||
Percentage of revenue | 79 | % | 51 | % |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Loss on derivative liabilities | 23,098 | — | $ | 23,098 | 100 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Loss on derivative liabilities, net | $ | — | $ | 25,505 | $ | (25,505) | (100) | % |
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Loss on derivative liabilities | 48,603 | — | $ | 48,603 | 100 | % |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest expense, net | 8,853 | 421 | $ | 8,432 | 2003 | % | ||||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Interest expense, net | 17,268 | 799 | $ | 16,469 | 2061 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Interest expense, net | $ | 126 | $ | 8,415 | $ | (8,289) | (99) | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Other expense, net | $ | 570 | $ | 291 | $ | 279 | 96 | % |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Other expense (income), net | 329 | (2,258 | ) | $ | 2,587 | (115 | )% | |||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Other expense (income), net | 620 | (577 | ) | $ | 1,197 | (207 | )% |
Three Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Provision for income taxes | 1,313 | 1,552 | $ | (239 | ) | (15 | )% | |||||||||
Six Months Ended June 30, | Change | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Provision for income taxes | 915 | 1,562 | $ | (647 | ) | (41 | )% |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||
Provision (benefit) for income taxes | $ | 2,536 | $ | (398) | $ | 2,934 | 737 | % |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
(dollars in thousands) | ||||||||
Net cash used in operating activities | $ | (7,579 | ) | $ | (10,541 | ) | ||
Net cash used in investing activities | (902 | ) | (877 | ) | ||||
Net cash (used in) provided by financing activities | (2,625 | ) | 8,270 | |||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | $ | 300 | $ | (291 | ) | |||
Net decrease in cash, cash equivalents, and restricted cash | $ | (10,806 | ) | $ | (3,439 | ) | ||
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||
Net cash used in operating activities | $ | (44,990) | $ | (201) | |||||||||||||||||||||||||||||||
Net cash used in investing activities | (3,413) | (179) | |||||||||||||||||||||||||||||||||
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) |
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 |