Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | Waitr Holdings Inc. | |
Entity Central Index Key | 0001653247 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | true | |
Entity Ex Transition Period | false | |
Trading Symbol | WTRH | |
Entity Common Stock, Shares Outstanding | 76,684,094 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37788 | |
Entity Tax Identification Number | 263828008 | |
Entity Address, Address Line One | 844 Ryan Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Lake Charles | |
Entity Address, State or Province | Louisiana | |
Entity Address, Postal Zip Code | 70601 | |
City Area Code | 337 | |
Local Phone Number | 534-6881 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 72,827 | $ 209,340 |
Accounts receivable, net | 7,149 | 3,687 |
Capitalized contract costs, current | 2,601 | 1,869 |
Prepaid expenses and other current assets | 9,673 | 4,548 |
TOTAL CURRENT ASSETS | 92,250 | 219,444 |
Property and equipment, net | 4,511 | 4,551 |
Capitalized contract costs, noncurrent | 1,191 | 827 |
Goodwill | 225,946 | 1,408 |
Intangible assets, net | 96,863 | 261 |
Other noncurrent assets | 539 | 61 |
TOTAL ASSETS | 421,300 | 226,552 |
CURRENT LIABILITIES | ||
Accounts payable | 2,188 | 1,827 |
Restaurant food liability | 7,537 | 208 |
Accrued payroll | 8,294 | 3,055 |
Short-term loan | 5,032 | 658 |
Deferred revenue, current | 3,472 | 3,314 |
Income tax payable | 0 | 25 |
Other current liabilities | 12,597 | 4,508 |
TOTAL CURRENT LIABILITIES | 39,120 | 13,595 |
Long-term debt | 118,364 | 80,985 |
Accrued workers’ compensation liability | 603 | 908 |
Deferred revenue, noncurrent | 1,048 | 1,356 |
Other noncurrent liabilities | 287 | 217 |
TOTAL LIABILITIES | 159,422 | 97,061 |
Commitment and contingencies (Note 11) | 0 | 0 |
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.0001 par value; 249,000,000 shares authorized and 76,134,094 and 54,035,538 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 8 | 5 |
Additional paid in capital | 382,402 | 200,417 |
Accumulated deficit | (120,532) | (70,931) |
TOTAL STOCKHOLDERS’ EQUITY | 261,878 | 129,491 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 421,300 | $ 226,552 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 249,000,000 | 249,000,000 |
Common stock, shares issued | 76,134,094 | 54,035,538 |
Common stock, shares outstanding | 76,134,094 | 54,035,538 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUE | $ 51,342 | $ 16,160 | $ 99,374 | $ 28,569 |
COSTS AND EXPENSES: | ||||
Operations and support | 39,698 | 11,918 | 75,881 | 21,034 |
Sales and marketing | 15,339 | 2,805 | 25,662 | 5,169 |
Research and development | 2,149 | 609 | 4,089 | 1,197 |
General and administrative | 12,380 | 7,842 | 31,298 | 11,355 |
Depreciation and amortization | 4,824 | 276 | 8,940 | 502 |
Impairment of intangible assets | 18 | 0 | ||
Loss on disposal of assets | 10 | 15 | 8 | |
TOTAL COSTS AND EXPENSES | 74,400 | 23,450 | 145,903 | 39,265 |
LOSS FROM OPERATIONS | (23,058) | (7,290) | (46,529) | (10,696) |
OTHER EXPENSES (INCOME) AND LOSSES (GAINS), NET | ||||
Interest expense | 2,190 | 290 | 3,795 | 462 |
Interest income | (241) | (580) | (1) | |
Gain on derivatives | (165) | (327) | ||
Other income | (123) | (39) | (173) | (38) |
NET LOSS BEFORE INCOME TAXES | (24,884) | (7,376) | (49,571) | (10,792) |
Income tax expense (benefit) | (32) | 23 | 30 | 34 |
NET LOSS | $ (24,852) | $ (7,399) | $ (49,601) | $ (10,826) |
LOSS PER SHARE: | ||||
Basic and diluted | $ (0.32) | $ (0.74) | $ (0.70) | $ (1.08) |
Weighted average common shares outstanding – basic and diluted | 72,416,614 | 9,997,815 | 68,492,911 | 10,023,853 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (49,601) | $ (10,826) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Non-cash interest expense | 1,079 | 142 |
Non-cash advertising expense | 310 | 187 |
Stock-based compensation | 4,552 | 2,182 |
Equity issued in exchange for services | 60 | 60 |
Loss on disposal of assets | 15 | 8 |
Depreciation and amortization | 8,940 | 502 |
Impairment of intangible assets | 18 | 0 |
Amortization of capitalized contract costs | 1,250 | 613 |
Gain on derivatives | 0 | (327) |
Changes in assets and liabilities: | ||
Accounts receivable | (1,734) | (653) |
Capitalized contract costs | (2,346) | (1,196) |
Prepaid expenses and other current assets | (3,932) | (2,482) |
Accounts payable | (592) | 829 |
Restaurant food liability | 6,399 | (4) |
Deferred revenue | (151) | 1,362 |
Change in current income taxes | (25) | 3 |
Accrued payroll | 4,113 | 739 |
Accrued workers’ compensation liability | (305) | 0 |
Other current liabilities | (2,441) | 4,475 |
Other noncurrent liabilities | 40 | (12) |
Net cash used in operating activities | (34,351) | (4,398) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (990) | (1,113) |
Collections on notes receivable | 53 | 0 |
Internally developed software | (155) | 0 |
Proceeds from sale of property and equipment | 23 | 0 |
Net cash used in investing activities | (193,637) | (1,124) |
Cash flows from financing activities: | ||
Proceeds from convertible notes issuance | 0 | 1,410 |
Waitr shares redeemed for cash | (10) | 0 |
Proceeds from issuance of stock | 50,002 | 0 |
Equity issuance costs | (4,175) | 0 |
Proceeds from Additional Term Loans | 42,080 | 0 |
Proceeds from short-term loan | 5,032 | 2,172 |
Payments on short-term loan | (658) | (215) |
Proceeds from exercise of stock options | 3 | 10 |
Taxes paid related to net settlement on stock-based compensation | (799) | 0 |
Net cash provided by financing activities | 91,475 | 3,377 |
Net change in cash | (136,513) | (2,145) |
Cash, beginning of period | 209,340 | 3,947 |
Cash, end of period | 72,827 | 1,802 |
Supplemental disclosures of cash flow information: | ||
Cash paid during the period for state income taxes | 30 | 31 |
Cash paid during the period for interest | 2,715 | 6 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Services receivable | 0 | 1,000 |
Stock issued as consideration for acquisition | 126,574 | |
Stock issued in connection with Additional Term Loans | 3,884 | 0 |
Non-cash gain on debt extinguishment | 1,897 | 0 |
Bifurcated embedded derivatives | 0 | 87 |
Discount on convertible notes due to beneficial conversion feature | 0 | 1,501 |
Indie Plate Limited Liability Company | ||
Cash flows from investing activities: | ||
Consideration paid for IndiePlate asset acquisition | 0 | (11) |
Supplemental disclosures of non-cash investing and financing activities: | ||
Debt assumed in IndiePlate asset acquisition | 0 | 60 |
BiteSquad.com, LLC | ||
Cash flows from operating activities: | ||
Net loss | 11,951 | |
Cash flows from investing activities: | ||
Acquisition of Bite Squad, net of cash acquired | (192,568) | 0 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Stock issued as consideration for acquisition | 126,574 | 0 |
Go Go Grocer LLC | ||
Supplemental disclosures of non-cash investing and financing activities: | ||
Stock issued as consideration for acquisition | $ 0 | $ 142 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Total | Preferred Seed I | Preferred Seed II | Preferred Seed AA | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balances at Dec. 31, 2017 | $ (1,510) | $ 35,110 | $ (36,620) | ||||
Balance (Shares) at Dec. 31, 2017 | 3,413,235 | 3,301,326 | 7,264,489 | 10,050,180 | |||
Net loss | (10,826) | (10,826) | |||||
Exercise of stock options | 10 | 10 | |||||
Exercise of stock options (in shares) | 210,087 | ||||||
Stock-based compensation | 1,962 | 1,962 | |||||
Cancellation of stock (in shares) | (132,095) | ||||||
Equity compensation on Requested Amendment | 220 | 220 | |||||
Equity issued in exchange for services | 60 | 60 | |||||
Stock issued as consideration in GoGoGrocer asset acquisition | 142 | 142 | |||||
Stock issued as consideration in GoGoGrocer asset acquisition (in shares) | 16,311 | ||||||
Discount on convertible notes due to beneficial conversion feature | 1,501 | 1,501 | |||||
Balances at Jun. 30, 2018 | (8,441) | 39,005 | (47,446) | ||||
Balance (Shares) at Jun. 30, 2018 | 3,413,235 | 3,301,326 | 7,264,489 | 10,144,483 | |||
Balances at Mar. 31, 2018 | (2,360) | 37,687 | (40,047) | ||||
Balance (Shares) at Mar. 31, 2018 | 3,413,235 | 3,301,326 | 7,264,489 | 10,050,180 | |||
Net loss | (7,399) | (7,399) | |||||
Exercise of stock options | 10 | 10 | |||||
Exercise of stock options (in shares) | 210,087 | ||||||
Stock-based compensation | 886 | 886 | |||||
Cancellation of stock (in shares) | (132,095) | ||||||
Equity compensation on Requested Amendment | 220 | 220 | |||||
Equity issued in exchange for services | 30 | 30 | |||||
Stock issued as consideration in GoGoGrocer asset acquisition | 142 | 142 | |||||
Stock issued as consideration in GoGoGrocer asset acquisition (in shares) | 16,311 | ||||||
Discount on convertible notes due to beneficial conversion feature | 30 | 30 | |||||
Balances at Jun. 30, 2018 | (8,441) | 39,005 | (47,446) | ||||
Balance (Shares) at Jun. 30, 2018 | 3,413,235 | 3,301,326 | 7,264,489 | 10,144,483 | |||
Balances at Dec. 31, 2018 | 129,491 | $ 5 | 200,417 | (70,931) | |||
Balance (Shares) at Dec. 31, 2018 | 54,035,538 | ||||||
Net loss | (49,601) | (49,601) | |||||
Gain on debt extinguishment | 1,897 | 1,897 | |||||
Exercise of stock options and vesting of restricted stock units | 3 | 3 | |||||
Exercise of stock options and vesting of restricted stock units (in shares) | 9,599 | ||||||
Taxes paid related to net settlement on stock-based compensation | (799) | (799) | |||||
Taxes paid related to net settlement on stock-based compensation (in shares) | (79,900) | ||||||
Stock-based compensation | 4,552 | 4,552 | |||||
Equity issued in exchange for services | 60 | 60 | |||||
Issuance of common stock in connection with Additional Term Loans | 3,884 | 3,884 | |||||
Issuance of common stock in connection with Additional Term Loans (in shares) | 325,000 | ||||||
Public Warrants exchanged for common stock | (609) | $ 1 | (610) | ||||
Public Warrants exchanged for common stock (in shares) | 4,494,889 | ||||||
Stock issued as consideration in Bite Squad Merger | 126,574 | $ 1 | 126,573 | ||||
Stock issued as consideration in Bite Squad Merger (in shares) | 10,591,968 | ||||||
Issuance of common stock | 46,426 | $ 1 | 46,425 | ||||
Issuance of common stock (in shares) | 6,757,000 | ||||||
Balances at Jun. 30, 2019 | 261,878 | $ 8 | 382,402 | (120,532) | |||
Balance (Shares) at Jun. 30, 2019 | 76,134,094 | ||||||
Balances at Mar. 31, 2019 | 235,866 | $ 7 | 331,539 | (95,680) | |||
Balance (Shares) at Mar. 31, 2019 | 69,368,381 | ||||||
Net loss | (24,852) | (24,852) | |||||
Gain on debt extinguishment | 1,897 | 1,897 | |||||
Exercise of stock options and vesting of restricted stock units | 2 | 2 | |||||
Exercise of stock options and vesting of restricted stock units (in shares) | 8,713 | ||||||
Stock-based compensation | 2,519 | 2,519 | |||||
Equity issued in exchange for services | 30 | 30 | |||||
Public Warrants exchanged for common stock | (10) | (10) | |||||
Issuance of common stock | 46,426 | $ 1 | 46,425 | ||||
Issuance of common stock (in shares) | 6,757,000 | ||||||
Balances at Jun. 30, 2019 | $ 261,878 | $ 8 | $ 382,402 | $ (120,532) | |||
Balance (Shares) at Jun. 30, 2019 | 76,134,094 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. Organization Waitr Holdings Inc., a Delaware corporation, together with its wholly-owned subsidiaries (the “Company,” “Waitr,” “we,” “us” and “our”), operates an online food ordering and delivery platform, powered by its team of delivery drivers. Waitr’s business model is the three-sided marketplace (restaurants, drivers and diners), enabled by its purpose-built platform. On January 17, 2019, Waitr acquired BiteSquad.com, LLC (“Bite Squad”), an online food ordering and delivery platform, which also operates a three-sided marketplace. The Company connects diners and restaurants via Waitr’s website and mobile application (the “Waitr Platform”) and Bite Squad’s website and mobile application (the “Bite Squad Platform” and together with the Waitr Platform, the “Platforms”). The Company’s Platforms allow consumers to browse local restaurants and menus, track order and delivery status, and securely store previous orders and payment information for ease of use and convenience. Restaurants benefit from the online Platforms through increased exposure to consumers for carryout sales and expanded business in the delivery market. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) as they apply to interim financial information. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete annual financial statements, although the Company believes that the disclosures made are adequate to make information not misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). The interim condensed consolidated financial statements are unaudited, but in the Company’s opinion, include all adjustments that are necessary for a fair presentation of the results for the periods presented. The interim results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. Reclassification Certain prior period amounts included in the unaudited condensed consolidated statements of operations have been reclassified to conform to the current period’s presentation. The Company has revised the classification of certain employee-related wages and payroll taxes associated with such wages for the three and six months ended June 30, 2018 to better align the statement of operations line items with departmental responsibilities and management of operations. These reclassifications had no effect on the Company’s reported total costs and expenses, loss from operations, net loss or loss per share for the three or six months ended June 30, 2018. The table below summarizes the financial statement line items impacted by these reclassifications (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Previously Reported Reclassification As Reclassified As Previously Reported Reclassification As Reclassified Operations and support expenses $ 10,498 $ 1,420 $ 11,918 $ 18,414 $ 2,620 $ 21,034 Sales and marketing expenses 2,786 19 2,805 5,139 30 5,169 General and administrative expenses 9,256 (1,414 ) 7,842 13,957 (2,602 ) 11,355 Related party expenses 25 (25 ) — 48 (48 ) — Certain prior period amounts included in the unaudited condensed consolidated balance sheets and statements of cash flows have been reclassified to conform to the current period’s presentation. Restaurant Food Liability All transactions processed through the Bite Squad Platform and certain transactions processed through the Waitr Platform result in the Company receiving all of the transaction proceeds. The Company records as a restaurant food liability the net balance owed to the restaurant, after deducting the commissions and other fees charged to the restaurant. The Company remits payments to the restaurants twice a month, generally on the 1 st th Use of Estimates The preparation of the unaudited condensed consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements affect the following items: determination of the nature and timing of satisfaction of revenue-generating performance obligations and the standalone selling price of performance obligations, variable consideration, other obligations such as product returns and refunds, allowance for doubtful accounts, allowance for chargebacks, incurred loss estimates under our insurance policies with large deductibles or retention levels, income taxes, useful lives of tangible and intangible assets, depreciation and amortization, equity compensation, contingencies, goodwill and other intangible assets, and fair value of assets acquired and liabilities assumed as part of a business combination. The Company regularly assesses these estimates and records changes to estimates in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions believed to be reasonable under the circumstances. Changes in the economic environment, financial markets, and any other parameters used in determining these estimates could cause actual results to differ from those estimates. Critical Accounting Policies and Estimates Except as set forth below, there has been no material change to our critical accounting policies and estimates described in the 2018 Form 10-K. Revenue The Company generates revenue (“transaction fees”) primarily when diners place an order on one of the Platforms. In the case of diner subscription fees, revenue is recognized when payment for the monthly subscription is received. Revenue consists of the following for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Transaction fees $ 50,227 $ 15,406 $ 97,195 $ 27,249 Setup and integration fees 1,081 626 2,103 1,116 Other 34 128 76 204 $ 51,342 $ 16,160 $ 99,374 $ 28,569 Transaction fees represent the revenue recognized from the Company’s obligation to process orders on the Platforms. The performance obligation is satisfied when the Company successfully processes an order placed on one of the Platforms and the restaurant receives the order at their location. The obligation to process orders on the Platforms represents a series of distinct performance obligations satisfied over time that the Company combines into a single performance obligation. Consistent with the recognition objective in Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers For the periods presented in this Quarterly Report on Form 10-Q (the “Form 10-Q”), the Company also received non-refundable upfront setup and integration fees for onboarding certain restaurants. Setup and integration activities primarily represented administrative activities that allowed the Company to fulfill future performance obligations for these restaurants and do not represent services transferred to the restaurant. However, the non-refundable upfront setup and integration fees charged to restaurants resulted in a performance obligation in the form of a material right related to the restaurant’s option to renew the contract each day rather than provide a notice of termination. Upfront non-refundable fees were generally due shortly after the contract was executed; however, the Company could provide installment payment options for up to six months. Revenue related to setup and integration fees was recognized ratably over a two-year period. On July 1, 2019, the Company provided notice to the majority of restaurants on its Waitr Platform, informing restaurants of proposed changes to the agreements between the Company and the restaurants, which include the elimination of the one-time setup and integration fee election in exchange for a performance-based, tiered transaction fee. See Note 16 – Subsequent Events The Company sells gift cards on the Bite Squad Platform and recognizes revenue upon gift card redemption. Gift cards that have not yet been utilized amount to $579 as of June 30, 2019 and are included on the unaudited condensed consolidated balance sheet in other current liabilities. Other revenue consists primarily of subscription revenue from restaurants who have opted to pay an ongoing monthly fee to remain on the Platforms instead of a lump sum setup fee. Significant Judgment Most of the Company’s contracts with restaurants contain multiple performance obligations as described above. For these contracts, the Company accounts for individual performance obligations separately if they are both capable of being distinct, and distinct in the context of the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. The Company used the alternative approach in ASC 606 to allocate the upfront fee between the material right obligation and the transaction fee obligation, which resulted in all of the upfront non-refundable payment at inception of the contract being allocated to the material right obligation. When contracts with restaurants include other performance obligations, such as ancillary equipment, the Company establishes a single amount to estimate the standalone selling price for the goods or services. In instances where the standalone selling price is not directly observable, it is determined using observable inputs. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to restaurants. The Company records a receivable when it has an unconditional right to the consideration. Setup and integration fees were due at inception of the contract; in certain cases, extended payment terms may have been provided for up to six months and are included in accounts receivable. The opening balance of accounts receivable, net was $3,687 and $2,124 Payment terms and conditions on setup and integration fees varied by contract type, although terms typically included a requirement of payment within six months. The Company recorded a contract liability in deferred revenue for the unearned portion of the upfront non-refundable fee. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. Assets Recognized from Costs to Obtain and Costs to Fulfill a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a restaurant and recognizes the expense over the course of the period when the Company expects to recover those costs. The Company has determined that certain internal sales incentives earned at the time when an initial contract is executed meet these requirements. Capitalized sales incentives are amortized to sales and marketing expense on a straight-line basis over the period of benefit, which the Company has determined to be two years. Deferred costs related to obtaining contracts with restaurants were $1,454 and $986 as of June 30, 2019 and December 31, 2018, respectively, out of which $990 and $679, respectively, were classified as current. Amortization of expense for the costs to obtain a contract were $242 and $121 for the three months ended June 30, 2019 and 2018, respectively, and $451 and $216 for the six months ended June 30, 2019 and 2018, respectively. The Company also recognizes an asset for the costs to fulfill a contract with a restaurant when they are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. The Company has determined that certain costs related to setup and integration activities meet the capitalization criteria under ASC Topic 340-40, Other Assets and Deferred Costs The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a restaurant when the amortization period would have been one year or less. There was no impairment loss in relation to capitalized costs for the periods presented. Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASCs. The Company considered the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on these unaudited condensed consolidated financial statements. As an emerging growth company, the Company has elected to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which removes, modifies or adds disclosure requirements regarding fair value measurements. The amendments in this ASU are effective for all entities beginning after December 15, 2019, with amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and narrative description of measurement uncertainty requiring prospective adoption and all other amendments requiring retrospective adoption. Early adoption is permitted. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Distinguishing Liabilities from Equity, In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, As an emerging growth company, the Company will not be subject to the requirements of ASU 2016-13 until fiscal year 2020. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations Bite Squad Merger On January 17, 2019, the Company completed the acquisition of Bite Squad, a Minnesota limited liability company, pursuant to the Agreement and Plan of Merger, dated as of December 11, 2018 (the “Bite Squad Merger Agreement”), by and among the Company, Bite Squad and Wingtip Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company. The transactions contemplated by the Bite Squad Merger Agreement are referred to herein as the “Bite Squad Merger.” Upon consummation of the Bite Squad Merger, Wingtip Merger Sub, Inc. merged with and into Bite Squad, with Bite Squad surviving the merger in accordance with the Minnesota Revised Uniform Limited Liability Act as a wholly-owned, indirect subsidiary of the Company. Founded in 2012 and based in Minneapolis, Bite Squad operates a three-sided marketplace, consistent with Waitr, through the Bite Squad Platform. (in thousands, except per share amount) Shares transferred at closing 10,592 Value per share $ 11.95 Total share consideration $ 126,574 Plus: cash transferred to Bite Squad members 193,098 Plus: pay down of debt 12,705 Total merger consideration $ 332,377 The Bite Squad Merger was considered a business combination in accordance with ASC 805, and has been accounted for using the acquisition method. Under the acquisition method of accounting, total merger consideration, acquired assets and assumed liabilities are recorded based on their estimated fair values on the acquisition date. The excess of the fair value of merger consideration over the fair value of the assets less liabilities acquired has been recorded as goodwill. The preliminary fair value of assets acquired and liabilities assumed in the Bite Squad Merger consists of the following (in thousands): Cash and cash equivalents $ 11,819 Settlements due from credit card processors 1,097 Accounts receivable 2,048 Inventory 940 Prepaid expenses and other 562 Intangible assets 104,400 Loans receivable 336 Other noncurrent assets 163 Restaurant food liability (930 ) Accounts payable (953 ) Accrued payroll (1,125 ) Accrued taxes (1,818 ) Other accruals (8,652 ) Indebtedness (48 ) Total assets acquired and liabilities assumed 107,839 Goodwill 224,538 Total merger consideration $ 332,377 The Company engaged a third-party to assist management in estimating the fair value of the assets and liabilities. The goodwill recorded in the Bite Squad Merger represents future anticipated economic benefits from combining operations of Waitr and Bite Squad, including, but not limited to, future growth into new markets, future enhancements to the Platforms, future customer relationships and the workforce in place. Approximately 81% of the goodwill is expected to be deductible for U.S. federal income tax purposes given the federal tax treatment of the transaction. The acquired identifiable intangible assets include customer relationships, trade name and developed technology. The acquired customer relationships were valued using the income approach, specifically, the multi-period excess earnings method, which measures the after-tax cash flows attributable to the existing customer relationships after deducting the operating costs and contributory asset charges associated with economic rents associated with supporting the existing customer relationships. The customer relationships acquired represent a Level 3 measurement as it was based on unobservable inputs reflecting the Company’s assumptions used in pricing the asset at fair value. These inputs required significant judgments and estimates at the time of the valuation. The acquired trade name was valued using the income approach, specifically, the relief from royalty rate method, which measures the cash flow streams attributable to the trade name in the form of royalty payments that would be paid to the owner of the trade name in return for the rights to use the trade name. The trade name acquired represents a Level 3 measurement as it was based on unobservable inputs reflecting the Company’s assumptions used in pricing the asset at fair value. These inputs required significant judgments and estimates at the time of the valuation. While the Company has substantially completed the determination of the fair values of the assets acquired and liabilities assumed, the Company is still finalizing the calculation of the purchase price adjustments pursuant to the Bite Squad Merger Agreement, which could affect the final fair value analysis. The Company anticipates finalizing the determination of the fair values by the fourth quarter of 2019. The results of operations of Bite Squad are included in our unaudited condensed consolidated financial statements beginning on the acquisition date, January 17, 2019. Revenue and net loss of Bite Squad included in the unaudited condensed consolidated statement of operations in the three months ended June 30, 2019 totaled approximately $26,147 and $7,368, respectively, and in the six months ended June 30, 2019 totaled approximately $49,062 and $11,951, respectively. Identifiable intangible assets acquired from Bite Squad consist of the following (in thousands): Amortizable Life (in years) Value Customer Relationships 7.5 $ 81,000 Trade name 3.0 5,400 Developed technology 4.0 18,000 Total $ 104,400 The acquired identifiable intangible assets are amortized on a straight-line basis to reflect the pattern in which the economic benefits of the intangible assets are consumed. In connection with the Bite Squad Merger, the Company incurred direct and incremental costs of $6,956 consisting of legal and professional fees, which are included in general and administrative expenses in the unaudited condensed consolidated statement of operations in the six months ended June 30, 2019. Pro-Forma Financial Information (Unaudited) The supplemental condensed consolidated results of the Company on an unaudited pro forma basis as if the Bite Squad Merger had been consummated on January 1, 2018 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net Revenue $ 51,341 $ 36,350 $ 103,659 $ 65,719 Net Loss 24,258 13,157 50,668 21,386 These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had the Company been a consolidated company during the periods presented and are not indicative of consolidated results of operations in future periods. The pro forma results include adjustments primarily related to acquisition accounting adjustments and interest expense associated with the related Additional Term Loans. Acquisition costs and other non-recurring charges incurred are included in the period presented. Landcadia Business Combination On November 15, 2018, the Company (f/k/a Landcadia Holdings, Inc.) completed the acquisition of Waitr Incorporated (the “Landcadia Business Combination”). Waitr Incorporated began operations in 2014 as a restaurant platform for online food ordering and delivery services. Landcadia Holdings, Inc. was a special purpose acquisition company whose business was to effect a merger, capital stock exchange, asset acquisition, stock purchase reorganization or similar business combination. The Landcadia Business Combination was accounted for as a reverse recapitalization, with no goodwill or other intangible assets recorded, in accordance with GAAP. Landcadia Holdings, Inc. was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Landcadia Business Combination was treated as the equivalent of Waitr Incorporated issuing stock for the net assets of Landcadia Holdings, Inc., accompanied by a recapitalization. The net assets of Landcadia Holdings, Inc. were stated at historical cost, with no goodwill or other intangible assets recorded. Reported amounts from operations included herein prior to the Landcadia Business Combination are those of Waitr Incorporated. The shares and earnings per share available to holders of the Company’s common stock as of and for the three and six months ended June 30, 2018, respectively, have been retroactively restated to reflect the exchange ratio established in the Landcadia Business Combination (0.8970953 Waitr Holdings Inc. shares to 1.0 Waitr Incorporated share). The pro forma information of the Landcadia Business Combination has been excluded as the amounts are not material. The aggregate consideration for the Landcadia Business Combination was $300,000, consisting of $71,680 in cash and 22,831,697 shares of the Company’s common stock valued at $10.00 per share. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable Accounts receivable consist of the following (in thousands): June 30, December 31, 2019 2018 Credit card receivables $ 5,228 $ 1,871 Receivables from restaurants and customers 2,289 1,991 Accounts receivable $ 7,517 $ 3,862 Less: allowance for doubtful accounts and chargebacks (368 ) (175 ) Accounts receivable, net $ 7,149 $ 3,687 |
Intangibles Assets and Goodwill
Intangibles Assets and Goodwill | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangibles Assets and Goodwill | 5. Intangibles Assets and Goodwill Intangible Assets Intangible assets with finite useful lives are amortized using the straight-line method over their estimated useful lives and include internally developed software, as well as software to be otherwise marketed, and trademarks/trade name/patents and customer relationships. These intangible assets are reviewed for impairment whenever events or circumstances indicate that they may not be recoverable. The Company has determined that the Waitr trademark intangible asset is an indefinite-lived asset and therefore is not subject to amortization but is evaluated annually for impairment. The Bite Squad trade name intangible asset, however, is being amortized over its estimated useful life. Intangible assets are stated at cost or acquisition-date fair value less accumulated amortization and consist of the following (in thousands): As of June 30, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Intangible Assets, Net Software $ 19,320 $ (2,550 ) $ (607 ) $ 16,163 Trademarks/Trade name/Patents 5,405 (830 ) — 4,575 Customer Relationships 81,142 (5,017 ) — 76,125 Total $ 105,867 $ (8,397 ) $ (607 ) $ 96,863 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Intangible Assets, Net Software $ 1,239 $ (536 ) $ (589 ) $ 114 Trademarks/Trade name/Patents 5 — — 5 Customer Relationships 142 — — 142 Total $ 1,386 $ (536 ) $ (589 ) $ 261 On January 17, 2019, the Company acquired intangible assets in connection with the acquisition of Bite Squad, including customer relationships of $81,000, trade names valued at $5,400 and developed technology of $18,000 (see Note 3 – Business Combinations An impairment loss of $18 in the three months ended March 31, 2019 was recorded for the portion of previously capitalized software that was replaced due to the release of new software developed in 2019. The Company recorded amortization expense of $4,310 and $28 for the three months ended June 30, 2019 and 2018, respectively, and $7,945 and $58 for the six months ended June 30, 2019 and 2018, respectively. Estimated future amortization expense of intangible assets is as follows (in thousands): Amortization The remainder of 2019 $ 8,640 2020 17,227 2021 17,165 2022 15,581 2023 10,800 Thereafter 27,450 Total future amortization $ 96,863 Goodwill The Company recorded $224,538 of goodwill as a result of the allocation of the purchase price over assets acquired and liabilities assumed in the Bite Squad Merger. No impairment losses were recorded for the three or six months ended June 30, 2019. The Company’s goodwill balance is as follows as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, 2019 2018 Balance, beginning of period $ 1,408 $ 1,408 Acquisition during the period 224,538 — Balance, end of period $ 225,946 $ 1,408 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | 6. Other Current Liabilities Other current liabilities consist of the following (in thousands): June 30, December 31, 2019 2018 Accrued advertising expenses $ 1,328 $ 887 Accrued transaction expenses 4,000 — Accrued sales tax payable 889 — Other current liabilities 6,380 3,621 Total other current liabilities $ 12,597 $ 4,508 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt The Company’s outstanding debt obligations are as follows (in thousands): June 30, December 31, 2019 2018 Term Loans $ 67,080 $ 25,000 Notes 60,205 60,000 $ 127,285 $ 85,000 Less: unamortized debt issuance costs on Term Loans (5,903 ) (2,268 ) Less: unamortized debt issuance costs on Notes (3,018 ) (1,747 ) Total long-term debt $ 118,364 $ 80,985 Short-term loans 5,032 658 Total outstanding debt $ 123,396 $ 81,643 The following discussion includes a description of the Company’s outstanding debt at June 30, 2019 and December 31, 2018. Interest expense related to the Company’s outstanding debt totaled $2,190 and $290 for the three months ended June 30, 2019 and 2018, respectively, and $3,795 and $462 for the six months ended June 30, 2019 and 2018, respectively. Interest expense includes interest on outstanding borrowings and amortization of debt issuance costs. Debt Facility On November 15, 2018, the Company’s wholly-owned indirect subsidiary Waitr Inc., as borrower, entered into the Credit and Guaranty Agreement, dated as of November 15, 2018 (as amended or otherwise modified from time to time, the “Credit Agreement”) with Luxor Capital Group, LP (“Luxor Capital”), as administrative agent and collateral agent, the various lenders party thereto, Waitr Intermediate Holdings, LLC, a Delaware limited liability company (“Intermediate Holdings”) and wholly-owned direct subsidiary of the Company, and certain subsidiaries of Waitr Inc. as guarantors. The Credit Agreement provides for a senior secured first priority term loan facility (the “Debt Facility”) to Waitr Inc. in the aggregate principal amount o f $ n January 17, 2019, Intermediate Holdings and Waitr Inc. entered into the Amendment No. 1 to Credit and Guaranty Agreement (the “First Credit Agreement Amendment”) with the various lenders party thereto and Luxor Capital, as administrative agent and collateral agent, which amended in order to provide to Waitr Inc. additional senior secured first priority term loans under the Debt Facility in the aggregate principal amount of $42,080 (the “Additional Term Loans”), the proceeds of which were used to consummate the Bite Squad Merger. On May 21, 2019, in connection with the Company’s underwritten follow-on public offering of common stock (the “Offering”) (see Note 13 – Stockholders’ Equity Notes Debt Extinguishment The Original Term Loans are guaranteed by Intermediate Holdings and secured by (i) a first priority pledge of the equity interests of Waitr Inc. and (ii) a first priority lien on substantially all other assets of Waitr Inc. and Intermediate Holdings (subject to customary exceptions). The Additional Term Loans are guaranteed by Intermediate Holdings, Bite Squad and its subsidiaries and the other guarantors party to the Credit Agreement and secured by a lien on substantially all assets of Waitr Inc., Intermediate Holdings, Bite Squad and its subsidiaries and the other guarantors under the Credit Agreement. The Additional Term Loans and Original Term Loans (together, the “Term Loans”), will mature on November 15, 2022. Interest on borrowings under the Debt Facility initially accrued at a rate of 7.0% per annum. Effective January 17, 2019, in connection with the First Credit Agreement Amendment, interest on borrowings under the Debt Facility accrues at a rate of 7.125% per annum, payable quarterly, in cash or, at the election of the borrower From the closing date of the Additional Term Loans through August 31, 2019, Waitr Inc. will be required to pay a prepayment premium of 5.0% of the principal amount of any Term Loans to be prepaid during such period in connection with (i) any prepayments (whether before or after an event of default), (ii) any payment, repayment or redemption of the obligations following an acceleration, (iii) certain bankruptcy events, or (iv) acceleration upon the termination for any reason of the definitive agreements documenting the convertible promissory notes issued under the Convertible Notes Agreement (as defined under Notes In connection with the Additional Term Loans, the Company issued to the lenders under the First Credit Agreement Amendment 325,000 shares of common stock of the Company in a private placement. The lenders under the First Credit Agreement Amendment have customary registration rights with respect to such shares. The Credit Agreement includes a number of customary covenants. Such covenants, among other things, limit or restrict the ability of each of Intermediate Holdings, Waitr Inc. and its subsidiaries to: • incur additional indebtedness and make guarantees; • incur liens on assets; • engage in mergers or consolidations or fundamental changes; • dispose of assets; • pay dividends and distributions or repurchase capital stock; • make investments, loans and advances, including acquisitions; • amend organizational documents and other material contracts; • enter into certain agreements that would restrict the ability to incur liens on assets; • repay certain junior indebtedness; • enter into certain transactions with affiliates; • enter into sale leaseback transactions; and • change the conduct of its business. The aforementioned restrictions are subject to certain exceptions including (i) the ability to incur additional indebtedness, liens, investments, dividends and distributions, and prepayments In connection with the Debt Facility, the Company issued to Luxor Capital warrants which are currently exercisable for 399,726 shares of the Company’s common stock (the “Debt Warrants”). See Note 13 – Stockholders’ Equity Notes In connection with the closing of the Landcadia Business Combination, the Company entered into the Credit Agreement, dated as of November 15, 2018 (as amended or otherwise modified from time to time, the “Convertible Notes Agreement”), pursuant to which the Company issued unsecured convertible promissory notes to Luxor Capital Partners, LP, Luxor Capital Partners Offshore Master Fund, LP, Luxor Wavefront, LP and Lugard Road Capital Master Fund, LP (the “Luxor Entities”) in the aggregate principal amount of $60,000 (the “Notes”). In connection with the First Credit Agreement Amendment, the Company entered into the Amendment No. 1 to Credit Agreement, dated as of January 17, 2019 (the “Convertible Notes First Amendment”), among the Company, the lenders party thereto and Luxor Capital, as administrative agent, which amended the Convertible Notes Agreement, to permit the Bite Squad Merger and to make certain other amendments in conformity with the First Credit Agreement Amendment. On May 21, 2019, in connection with the Offering, the Company entered into the Amendment No. 2 to Credit Agreement (the “Convertible Notes Second Amendment”), which amended the Convertible Notes Agreement. Prior to the execution of the Convertible Notes Second Amendment, t he Notes had an interest rate of 1.0 revisions in the Convertible Notes Second Amendment, along with those in Debt Extinguishment The Notes will mature four years from the date of the closing of the Landcadia Business Combination, unless earlier converted at the election of the holder. Upon maturity, the outstanding Notes (and any accrued but unpaid interest) will be repaid in cash or converted into shares of common stock, at the holder’s election. The effective interest rate for borrowings on the Notes, after considering the allocated discount, is approximately 7.77%. The Notes include customary anti-dilution protection, including broad-based weighted average adjustments for issuances of additional shares (down-round features), and the shares issuable upon their conversion have certain registration rights. The Company may only prepay the Notes with the consent of the holders of at least a majority-in-interest of the outstanding Notes. Prior to the Offering, at any time at the holder’s election, each Note was convertible in whole or in part into shares of the Company’s common stock at a rate of $13.00 per share (subject to a 9.9% conversion cap). The Company’s payment Debt Extinguishment To apply the debt extinguishment assessment, management determined that the Term Loans and Notes should be viewed as one instrument, as both are held by the same lender (Luxor Capital, along with the Luxor Entities) before and after the May 21, 2019 amendments and they were amended concurrently. The revisions to the interest rate and the conversion rate in the Convertible Notes Second Amendment were deemed substantial, resulting in the application of debt extinguishment accounting. The Company recorded a gain on debt extinguishment of $1,897 based on (a) the difference between the fair value of the amended Notes of $56,894 and the carrying amount of the original Notes of $58,421 on May 21, 2019 and (b) the difference between the fair value of the amended Term Loans of $61,014 and the carrying amount of the original Term Loans of $61,385 on May 21, 2019. Based on management’s determination that the sole lender under the Term Loans and Notes (Luxor Capital, along with the Luxor Entities) is a related party to the Company, in accordance with ASC 470-50, the Company recorded the gain on debt extinguishment as a capital contribution in the unaudited condensed consolidated statement of stockholders’ equity. For purposes of calculating net loss per share attributable to common stockholders (see Note 14 – Loss Per Share Attributable to Common Stockholders ), the gain on debt extinguishment was added to net loss. Short-term loans On June 26, 2019, the Company entered into a loan agreement with First Insurance Funding to finance a portion of its annual insurance premium obligation. The principal amount of the loan is $5,032, payable in monthly installments, until maturity. The loan matures on April 1, 2020 and carries an annual interest rate of 4.08%. On June 4, 2018, the Company entered into a loan agreement with First Insurance Funding to finance a portion of its annual insurance premium obligation. The loan had a principal amount of $2,172, payable in monthly installments, until maturity, and carried an annual interest rate of 3.39%. As of December 31, 2018, $658 was outstanding under such loan. The loan was paid in full upon maturity on March 21, 2019. Series 2018 Convertible Promissory Notes Between March 2, 2018 and March 15, 2018, the Company issued a series of convertible promissory notes (“Series 2018 Notes”) to various investors with a maturity date of 24 months from the date of issuance with an aggregate principal amount of $2,470, of which $1,410 was received in cash, $1,000 in advertising services receivable, and $60 was debt assumed in the IndiePlate LLC asset acquisition. The Series 2018 Notes accrued interest at a rate of 8% per annum that was due and payable at maturity, unless otherwise converted prior to maturity. In connection with the Landcadia Business Combination, the Series 2018 Notes were either ultimately converted into common stock of the post-combination company or redeemed for cash. The Company determined that the feature in the Series 2018 Notes providing for conversion into shares sold in the next financing at a stated discount and the ability for holders to redeem their notes at a substantial premium, represented an embedded derivative, requiring separate accounting recognition, in accordance with subtopic ASC 815-15 . Note 8 – Derivatives |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 8. Derivatives As described in Note 7 – Debt The amount of gain recognized in the unaudited condensed consolidated statements of operations on derivatives not designated as hedging instruments is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Gain on derivatives $ — $ (165 ) $ — $ (327 ) |
Deferred Revenue
Deferred Revenue | 6 Months Ended |
Jun. 30, 2019 | |
Revenue Recognition And Deferred Revenue [Abstract] | |
Deferred Revenue | 9. Deferred Revenue Deferred revenue is comprised of unearned setup and integration fees. The Company’s opening deferred revenue balance was $4,670 and $2,358 as of January 1, 2019 and January 1, 2018, respectively. The Company recognized $1,081 and $432 of setup and integration revenue during the three months ended June 30, 2019 and 2018, respectively, and $2,104 and $969 during the six months ended June 30, 2019 and 2018, respectively, which was included in the deferred revenue balances at the beginning of the respective periods. Transaction Price Allocated to the Remaining Performance Obligations As of June 30, 2019, $4,520 of revenue was expected to be recognized from remaining performance obligations for setup and integration fees, with approximately $3,472 expected to be recognized over the next 12 months. However, in July 2019, the Company initiated modifications to its fee structure with a majority of restaurants on the Waitr Platform. With the introduction of the new fee structure, the Company discontinued offering fee arrangements with the one-time setup and integration fee. The contract modifications and the effect of such modifications on our measure of progress towards the performance obligations, are expected to result in a cumulative adjustment to revenue in the third quarter of 2019 for a significant portion of amounts within deferred revenue. See Note 16 – Subsequent Events |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The Company provides for income taxes using an asset and liability approach under which deferred income taxes are provided for based upon enacted tax laws and rates applicable to periods in which the taxes become payable. The Company recorded an income tax expense (benefit) of $(32) and $23 for the three months ended June 30, 2019 and 2018, respectively, and $30 and $34 for the six months ended June 30, 2019 and 2018, respectively. The Company’s income tax expense is entirely related to taxes required on gross margins in Texas. A partial valuation allowance has been recorded as of June 30, 2019 and December 31, 2018 as the Company has historically generated net operating losses, and the Company did not consider future book income as a source of taxable income when assessing if a portion of the deferred tax assets is more likely than not to be realized. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Workers’ Compensation Claim On November 27, 2017, Guarantee Insurance Company (“GIC”), the Company’s former workers’ compensation insurer, was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida. At the time of the court order, GIC was administering the Company’s outstanding workers’ compensation claims. Upon entering receivership, the guaranty associations of the states where GIC operated began reviewing outstanding claims administered by GIC for continued claim coverage eligibility based on guaranty associations’ eligibility criteria. The Company’s net worth exceeded the threshold of $25,000 established by the Louisiana Insurance Guaranty Association (“LIGA”) when determining eligibility for claims coverage. As such, LIGA assessed the Company’s outstanding claim as ineligible for coverage. As of June 30, 2019 and December 31, 2018, the Company had $977 and $1,317, respectively, in workers’ compensation liabilities associated with the GIC claims. The Company recorded no general and administrative expense related to these liabilities during the three or six months ended June 30, 2019 or 2018. Legal Matters In February 2019, the Company was named a defendant in a lawsuit titled Halley, et al vs. Waitr Holdings Inc Montgomery v. Waitr Holdings Inc In addition to the lawsuits described above, the Company is involved in other litigation arising from the normal course of business activities. The Company is involved in various lawsuits involving claims for personal injuries, physical damage and workers’ compensation benefits suffered as a result of alleged Waitr drivers, independent contractors, and third-party negligence. Although the Company cannot predict the outcomes of these matters, the Company does not believe these actions will have a material adverse effect on the Company’s consolidated financial statements. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 12. Fair Value Measurement Certain financial instruments are required to be recorded at fair value. Other financial instruments, including cash, are recorded at cost, which approximates fair value. Additionally, accounts receivable, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. As of June 30, 2019 and December 31, 2018, the Company held no financial instruments required to be measured at fair value on a recurring basis. In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record certain assets and liabilities at fair value on a non-recurring basis. The Company generally applies fair value concepts in recording assets and liabilities acquired in acquisitions. See Note 3 – Business Combinations Additionally, in connection with the Second Credit Agreement Amendment, the Convertible Notes Second Amendment and the related debt extinguishment accounting (see Note 7 – Debt |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 13. Stockholders’ Equity Common Stock At June 30, 2019 and December 31, 2018, the Company had 249,000,000 authorized shares of common stock, par value $0.0001 per share. At June 30, 2019 and December 31, 2018, there were 76,134,094 and 54,035,538 shares of common stock issued and outstanding, respectively, par value $0.0001 per share. The Company did not hold any shares as treasury shares as of June 30, 2019 or December 31, 2018. The Company’s common stockholders are entitled to one vote per share. Preferred Stock At June 30, 2019 and December 31, 2018, the Company had 1,000,000 authorized shares of preferred stock, par value $0.0001 per share. There were no issued or outstanding preferred shares as of June 30, 2019 or December 31, 2018. Follow-on Public Offering On May 21, 2019, the Company completed an underwritten follow-on public offering of 6,757,000 shares of its common stock at a price of $7.40 per share resulting in gross proceeds of $50,002. Bite Squad Merger A portion of the consideration for the Bite Squad Merger was paid in the form of common shares of the Company. Common shares transferred at closing totaled 10,591,968. Additionally, in connection with the Additional Term Loans (see Note 7 – Debt Warrants Public Warrants Prior to the consummation of the Landcadia Business Combination, Landcadia Holdings, Inc. had 25,000,000 public warrants outstanding (the “Public Warrants”). In the first quarter of 2019, the Company completed an exchange offer and consent solicitation relating to the Public Warrants. A total of 4,494,889 shares, after adjustments for fractional shares (which were settled in cash in the second quarter of 2019), of the Company’s common stock were issued in exchange for such Public Warrants. Debt Warrants In connection with the Debt Facility, the Company issued to Luxor Capital warrants initially exercisable for 384,615 shares of the Company’s common stock with an exercise price of $13.00 per share. The Debt Warrants became exercisable after the consummation of the Landcadia Business Combination and will expire four years from the closing date of the Landcadia Business Combination. The Debt Warrants include customary anti-dilution protection, including broad-based weighted average adjustments for issuances of additional shares (down-round features) and holders of the Debt Warrants have customary 2014 Warrants On May 14, 2014, the Company granted warrants (the “2014 Warrants”) to non-employees (“Holders”) to purchase 406,337 shares of common stock at an exercise price of $0.01 per share. The 2014 Warrants were subject to a vesting schedule at a rate of 12.5% of the granted share amount per quarter over two years of service. The Company records equity instruments issued to non-employees as expense, based on the fair value of the Company’s common stock. The 2014 Warrants were exercised in connection with the Landcadia Business Combination and the Holders received 405,884 shares of common stock, representing the 406,337 warrants exercised, net of 453 shares used to cover the warrant cost. The Company did not recognize any expense for the three or six months ended June 30, 2019 or 2018 as the 2014 Warrants were fully vested during such periods. |
Loss Per Share Attributable to
Loss Per Share Attributable to Common Stockholders | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Loss Per Share Attributable to Common Stockholders | 14. Loss Per Share Attributable to Common Stockholders Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common stock outstanding during the period, without consideration for common stock equivalents. Diluted loss per share attributable to common stockholders is computed by dividing net loss by the weighted-average number of common stock outstanding during the period and potentially dilutive common stock equivalents, including stock options, restricted stock awards, restricted stock units and warrants, except in cases where the effect of the common stock equivalent would be antidilutive. The Landcadia Business Combination was accounted for as a reverse recapitalization in accordance with GAAP (see Note 3 – Business Combinations The calculation of basic and diluted loss per share attributable to common stockholders for the three and six months ended June 30, 2019 and 2018 is as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net loss – basic and diluted $ (24,852 ) $ (7,399 ) $ (49,601 ) $ (10,826 ) Gain on debt extinguishment recorded as a capital contribution (see Note 7) 1,897 — 1,897 — Net loss attributable to participating securities – basic and diluted — — — — Net loss attributable to common stockholders – basic and diluted $ (22,955 ) $ (7,399 ) $ (47,704 ) $ (10,826 ) Denominator: Weighted-average number of shares outstanding – basic and diluted 72,416,614 9,997,815 68,492,911 10,023,853 Loss per share – basic and diluted $ (0.32 ) $ (0.74 ) $ (0.70 ) $ (1.08 ) Excluded from the calculation of weighted-average number of diluted shares outstanding is the effect of the Series 2018 Notes, which have historically converted to preferred shares. In connection with the Landcadia Business Combination, we issued Notes which are convertible into shares of the Company’s common stock. See Note 7 – Debt The following table includes potentially dilutive common stock equivalents as of June 30, 2019 and 2018. The Company generated a net loss attributable to the Company’s common stockholders for the three and six months ended June 30, 2019 and 2018. Accordingly, the effect of dilutive securities is not considered in the loss per share for such periods because their effect would be antidilutive on the net loss. As of June 30, 2019 2018 Potentially dilutive securities: Convertible Preferred Stock: Seed I — 3,413,235 Seed II — 3,301,326 Series AA — 7,264,489 Stock Options 846,919 4,335,166 Restricted Stock Units 580,991 — Warrants (1) 399,726 406,337 Potentially dilutive securities at period end 1,827,636 18,720,553 (1) Includes the Debt Warrants as of June 30, 2019 and the 2014 Warrants as of June 30, 2018. See Note 7 – Debt Note 13 – Stockholders’ Equity |
Related-Party Transactions
Related-Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 15. Related-Party Transactions On November 15, 2018, in connection with the Landcadia Business Combination, the Company entered into the Credit Agreement, and on January 17, 2019, in connection with the Bite Squad Merger, the Company entered into the First Credit Agreement Amendment with Luxor Capital and the Convertible Notes First Amendment with the Luxor Entities. On May 21, 2019, in connection with the Offering, the Company entered into the Second Credit Agreement Amendment with Luxor Capital and the Convertible Notes Second Amendment with the Luxor Entities. See Note 7 – Debt At the closing of the Landcadia Business Combination, the Company entered into a consulting agreement with Steven L. Scheinthal, a board member of the Company, pursuant to which he received 150,000 restricted shares under the Waitr Holdings Inc. 2018 Omnibus Incentive Plan. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events In July 2019, the Company initiated modifications to its fee structure with a majority of restaurants on the Waitr Platform. The new, modified fee structure is performance-based and tiered such that restaurants with higher sales through the Waitr Platform will be subject to a rate at the lower end of the range; whereas restaurants with lower sales through the Waitr Platform will be subject to a rate at the upper end of the range. The new, performance-based fees become effective in August 2019, upon acceptance of the new agreements by the restaurants. Additionally, with the introduction of the performance-based fee structure, the Company discontinued offering fee arrangements with the one-time setup and integration fee. With the acceptance of the performance-based fee structure, the Company may, but is not required to, waive uncollected portions of the setup and integration fee for restaurants affected by the change. The contract modifications and the effect of such modifications on our measure of progress towards the performance obligations, are expected to result in a cumulative adjustment to revenue in the third quarter of 2019 for a significant portion of amounts within deferred revenue. Further, portions of our capitalized contract costs pertaining or allocable to restaurants who have cancelled or terminated are also expected to be recognized in the third quarter of 2019. Given the timing of the introduction of the proposed modifications and the period of time over which restaurants have to review and accept the new agreements, we are unable to estimate the effects of the change at this time. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) as they apply to interim financial information. Accordingly, the interim condensed consolidated financial statements do not include all of the information and notes required by GAAP for complete annual financial statements, although the Company believes that the disclosures made are adequate to make information not misleading. The unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”). The interim condensed consolidated financial statements are unaudited, but in the Company’s opinion, include all adjustments that are necessary for a fair presentation of the results for the periods presented. The interim results are not necessarily indicative of results that may be expected for any other interim period or the fiscal year. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated upon consolidation. |
Reclassification | Reclassification Certain prior period amounts included in the unaudited condensed consolidated statements of operations have been reclassified to conform to the current period’s presentation. The Company has revised the classification of certain employee-related wages and payroll taxes associated with such wages for the three and six months ended June 30, 2018 to better align the statement of operations line items with departmental responsibilities and management of operations. These reclassifications had no effect on the Company’s reported total costs and expenses, loss from operations, net loss or loss per share for the three or six months ended June 30, 2018. The table below summarizes the financial statement line items impacted by these reclassifications (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Previously Reported Reclassification As Reclassified As Previously Reported Reclassification As Reclassified Operations and support expenses $ 10,498 $ 1,420 $ 11,918 $ 18,414 $ 2,620 $ 21,034 Sales and marketing expenses 2,786 19 2,805 5,139 30 5,169 General and administrative expenses 9,256 (1,414 ) 7,842 13,957 (2,602 ) 11,355 Related party expenses 25 (25 ) — 48 (48 ) — Certain prior period amounts included in the unaudited condensed consolidated balance sheets and statements of cash flows have been reclassified to conform to the current period’s presentation. Restaurant Food Liability All transactions processed through the Bite Squad Platform and certain transactions processed through the Waitr Platform result in the Company receiving all of the transaction proceeds. The Company records as a restaurant food liability the net balance owed to the restaurant, after deducting the commissions and other fees charged to the restaurant. The Company remits payments to the restaurants twice a month, generally on the 1 st th |
Use of Estimates | Use of Estimates The preparation of the unaudited condensed consolidated financial statements in accordance with GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Significant estimates and judgments relied upon in preparing these condensed consolidated financial statements affect the following items: determination of the nature and timing of satisfaction of revenue-generating performance obligations and the standalone selling price of performance obligations, variable consideration, other obligations such as product returns and refunds, allowance for doubtful accounts, allowance for chargebacks, incurred loss estimates under our insurance policies with large deductibles or retention levels, income taxes, useful lives of tangible and intangible assets, depreciation and amortization, equity compensation, contingencies, goodwill and other intangible assets, and fair value of assets acquired and liabilities assumed as part of a business combination. The Company regularly assesses these estimates and records changes to estimates in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions believed to be reasonable under the circumstances. Changes in the economic environment, financial markets, and any other parameters used in determining these estimates could cause actual results to differ from those estimates. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates Except as set forth below, there has been no material change to our critical accounting policies and estimates described in the 2018 Form 10-K. |
Revenue | Revenue The Company generates revenue (“transaction fees”) primarily when diners place an order on one of the Platforms. In the case of diner subscription fees, revenue is recognized when payment for the monthly subscription is received. Revenue consists of the following for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Transaction fees $ 50,227 $ 15,406 $ 97,195 $ 27,249 Setup and integration fees 1,081 626 2,103 1,116 Other 34 128 76 204 $ 51,342 $ 16,160 $ 99,374 $ 28,569 Transaction fees represent the revenue recognized from the Company’s obligation to process orders on the Platforms. The performance obligation is satisfied when the Company successfully processes an order placed on one of the Platforms and the restaurant receives the order at their location. The obligation to process orders on the Platforms represents a series of distinct performance obligations satisfied over time that the Company combines into a single performance obligation. Consistent with the recognition objective in Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers For the periods presented in this Quarterly Report on Form 10-Q (the “Form 10-Q”), the Company also received non-refundable upfront setup and integration fees for onboarding certain restaurants. Setup and integration activities primarily represented administrative activities that allowed the Company to fulfill future performance obligations for these restaurants and do not represent services transferred to the restaurant. However, the non-refundable upfront setup and integration fees charged to restaurants resulted in a performance obligation in the form of a material right related to the restaurant’s option to renew the contract each day rather than provide a notice of termination. Upfront non-refundable fees were generally due shortly after the contract was executed; however, the Company could provide installment payment options for up to six months. Revenue related to setup and integration fees was recognized ratably over a two-year period. On July 1, 2019, the Company provided notice to the majority of restaurants on its Waitr Platform, informing restaurants of proposed changes to the agreements between the Company and the restaurants, which include the elimination of the one-time setup and integration fee election in exchange for a performance-based, tiered transaction fee. See Note 16 – Subsequent Events The Company sells gift cards on the Bite Squad Platform and recognizes revenue upon gift card redemption. Gift cards that have not yet been utilized amount to $579 as of June 30, 2019 and are included on the unaudited condensed consolidated balance sheet in other current liabilities. Other revenue consists primarily of subscription revenue from restaurants who have opted to pay an ongoing monthly fee to remain on the Platforms instead of a lump sum setup fee. Significant Judgment Most of the Company’s contracts with restaurants contain multiple performance obligations as described above. For these contracts, the Company accounts for individual performance obligations separately if they are both capable of being distinct, and distinct in the context of the contract. Determining whether products and services are considered distinct performance obligations that should be accounted for separately may require significant judgment. Judgment is also required to determine the standalone selling price for each distinct performance obligation. The Company used the alternative approach in ASC 606 to allocate the upfront fee between the material right obligation and the transaction fee obligation, which resulted in all of the upfront non-refundable payment at inception of the contract being allocated to the material right obligation. When contracts with restaurants include other performance obligations, such as ancillary equipment, the Company establishes a single amount to estimate the standalone selling price for the goods or services. In instances where the standalone selling price is not directly observable, it is determined using observable inputs. Contract Balances The timing of revenue recognition may differ from the timing of invoicing to restaurants. The Company records a receivable when it has an unconditional right to the consideration. Setup and integration fees were due at inception of the contract; in certain cases, extended payment terms may have been provided for up to six months and are included in accounts receivable. The opening balance of accounts receivable, net was $3,687 and $2,124 Payment terms and conditions on setup and integration fees varied by contract type, although terms typically included a requirement of payment within six months. The Company recorded a contract liability in deferred revenue for the unearned portion of the upfront non-refundable fee. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. Assets Recognized from Costs to Obtain and Costs to Fulfill a Contract with a Customer The Company recognizes an asset for the incremental costs of obtaining a contract with a restaurant and recognizes the expense over the course of the period when the Company expects to recover those costs. The Company has determined that certain internal sales incentives earned at the time when an initial contract is executed meet these requirements. Capitalized sales incentives are amortized to sales and marketing expense on a straight-line basis over the period of benefit, which the Company has determined to be two years. Deferred costs related to obtaining contracts with restaurants were $1,454 and $986 as of June 30, 2019 and December 31, 2018, respectively, out of which $990 and $679, respectively, were classified as current. Amortization of expense for the costs to obtain a contract were $242 and $121 for the three months ended June 30, 2019 and 2018, respectively, and $451 and $216 for the six months ended June 30, 2019 and 2018, respectively. The Company also recognizes an asset for the costs to fulfill a contract with a restaurant when they are specifically identifiable, generate or enhance resources used to satisfy future performance obligations, and are expected to be recovered. The Company has determined that certain costs related to setup and integration activities meet the capitalization criteria under ASC Topic 340-40, Other Assets and Deferred Costs The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a restaurant when the amortization period would have been one year or less. There was no impairment loss in relation to capitalized costs for the periods presented. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Changes to GAAP are established by the Financial Accounting Standards Board (“FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASCs. The Company considered the applicability and impact of all ASUs. ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on these unaudited condensed consolidated financial statements. As an emerging growth company, the Company has elected to use the extended transition period for complying with new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820) – Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement , which removes, modifies or adds disclosure requirements regarding fair value measurements. The amendments in this ASU are effective for all entities beginning after December 15, 2019, with amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and narrative description of measurement uncertainty requiring prospective adoption and all other amendments requiring retrospective adoption. Early adoption is permitted. In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718), In July 2017, the FASB issued ASU No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Distinguishing Liabilities from Equity, In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, As an emerging growth company, the Company will not be subject to the requirements of ASU 2016-13 until fiscal year 2020. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). |
Business Combinations | The Bite Squad Merger was considered a business combination in accordance with ASC 805, and has been accounted for using the acquisition method. Under the acquisition method of accounting, total merger consideration, acquired assets and assumed liabilities are recorded based on their estimated fair values on the acquisition date. The excess of the fair value of merger consideration over the fair value of the assets less liabilities acquired has been recorded as goodwill. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Reclassification Effect on Financial Statement | The table below summarizes the financial statement line items impacted by these reclassifications (in thousands): Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 As Previously Reported Reclassification As Reclassified As Previously Reported Reclassification As Reclassified Operations and support expenses $ 10,498 $ 1,420 $ 11,918 $ 18,414 $ 2,620 $ 21,034 Sales and marketing expenses 2,786 19 2,805 5,139 30 5,169 General and administrative expenses 9,256 (1,414 ) 7,842 13,957 (2,602 ) 11,355 Related party expenses 25 (25 ) — 48 (48 ) — |
Summary of Revenue | The Company generates revenue (“transaction fees”) primarily when diners place an order on one of the Platforms. In the case of diner subscription fees, revenue is recognized when payment for the monthly subscription is received. Revenue consists of the following for the periods indicated (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Transaction fees $ 50,227 $ 15,406 $ 97,195 $ 27,249 Setup and integration fees 1,081 626 2,103 1,116 Other 34 128 76 204 $ 51,342 $ 16,160 $ 99,374 $ 28,569 |
Business Combinations (Tables)
Business Combinations (Tables) - BiteSquad.com, LLC | 6 Months Ended |
Jun. 30, 2019 | |
Schedule of Merger Consideration | The following represents the total merger consideration: (in thousands, except per share amount) Shares transferred at closing 10,592 Value per share $ 11.95 Total share consideration $ 126,574 Plus: cash transferred to Bite Squad members 193,098 Plus: pay down of debt 12,705 Total merger consideration $ 332,377 |
Preliminary Fair Value of Assets Acquired and Liabilities Assumed | The preliminary fair value of assets acquired and liabilities assumed in the Bite Squad Merger consists of the following (in thousands): Cash and cash equivalents $ 11,819 Settlements due from credit card processors 1,097 Accounts receivable 2,048 Inventory 940 Prepaid expenses and other 562 Intangible assets 104,400 Loans receivable 336 Other noncurrent assets 163 Restaurant food liability (930 ) Accounts payable (953 ) Accrued payroll (1,125 ) Accrued taxes (1,818 ) Other accruals (8,652 ) Indebtedness (48 ) Total assets acquired and liabilities assumed 107,839 Goodwill 224,538 Total merger consideration $ 332,377 |
Summary of Identifiable Intangible Assets Acquired | Identifiable intangible assets acquired from Bite Squad consist of the following (in thousands): Amortizable Life (in years) Value Customer Relationships 7.5 $ 81,000 Trade name 3.0 5,400 Developed technology 4.0 18,000 Total $ 104,400 |
Summary of Supplemental Condensed Consolidated Results of Company on an Unaudited Pro Forma Basis | The supplemental condensed consolidated results of the Company on an unaudited pro forma basis as if the Bite Squad Merger had been consummated on January 1, 2018 are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Net Revenue $ 51,341 $ 36,350 $ 103,659 $ 65,719 Net Loss 24,258 13,157 50,668 21,386 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following (in thousands): June 30, December 31, 2019 2018 Credit card receivables $ 5,228 $ 1,871 Receivables from restaurants and customers 2,289 1,991 Accounts receivable $ 7,517 $ 3,862 Less: allowance for doubtful accounts and chargebacks (368 ) (175 ) Accounts receivable, net $ 7,149 $ 3,687 |
Intangibles Assets and Goodwi_2
Intangibles Assets and Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets are stated at cost or acquisition-date fair value less accumulated amortization and consist of the following (in thousands): As of June 30, 2019 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Intangible Assets, Net Software $ 19,320 $ (2,550 ) $ (607 ) $ 16,163 Trademarks/Trade name/Patents 5,405 (830 ) — 4,575 Customer Relationships 81,142 (5,017 ) — 76,125 Total $ 105,867 $ (8,397 ) $ (607 ) $ 96,863 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Accumulated Impairment Intangible Assets, Net Software $ 1,239 $ (536 ) $ (589 ) $ 114 Trademarks/Trade name/Patents 5 — — 5 Customer Relationships 142 — — 142 Total $ 1,386 $ (536 ) $ (589 ) $ 261 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | Estimated future amortization expense of intangible assets is as follows (in thousands): Amortization The remainder of 2019 $ 8,640 2020 17,227 2021 17,165 2022 15,581 2023 10,800 Thereafter 27,450 Total future amortization $ 96,863 |
Schedule of Goodwill | The Company’s goodwill balance is as follows as of June 30, 2019 and December 31, 2018 (in thousands): June 30, December 31, 2019 2018 Balance, beginning of period $ 1,408 $ 1,408 Acquisition during the period 224,538 — Balance, end of period $ 225,946 $ 1,408 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities consist of the following (in thousands): June 30, December 31, 2019 2018 Accrued advertising expenses $ 1,328 $ 887 Accrued transaction expenses 4,000 — Accrued sales tax payable 889 — Other current liabilities 6,380 3,621 Total other current liabilities $ 12,597 $ 4,508 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt Obligations | The Company’s outstanding debt obligations are as follows (in thousands): June 30, December 31, 2019 2018 Term Loans $ 67,080 $ 25,000 Notes 60,205 60,000 $ 127,285 $ 85,000 Less: unamortized debt issuance costs on Term Loans (5,903 ) (2,268 ) Less: unamortized debt issuance costs on Notes (3,018 ) (1,747 ) Total long-term debt $ 118,364 $ 80,985 Short-term loans 5,032 658 Total outstanding debt $ 123,396 $ 81,643 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Amount of Gain Recognized in Consolidated Statement of Operations on Derivatives Not Designated as Hedging Instruments | The amount of gain recognized in the unaudited condensed consolidated statements of operations on derivatives not designated as hedging instruments is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Gain on derivatives $ — $ (165 ) $ — $ (327 ) |
Loss Per Share Attributable t_2
Loss Per Share Attributable to Common Stockholders (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Loss Per Share Attributable to Common Stockholders | The calculation of basic and diluted loss per share attributable to common stockholders for the three and six months ended June 30, 2019 and 2018 is as follows (in thousands, except share and per share data): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Numerator: Net loss – basic and diluted $ (24,852 ) $ (7,399 ) $ (49,601 ) $ (10,826 ) Gain on debt extinguishment recorded as a capital contribution (see Note 7) 1,897 — 1,897 — Net loss attributable to participating securities – basic and diluted — — — — Net loss attributable to common stockholders – basic and diluted $ (22,955 ) $ (7,399 ) $ (47,704 ) $ (10,826 ) Denominator: Weighted-average number of shares outstanding – basic and diluted 72,416,614 9,997,815 68,492,911 10,023,853 Loss per share – basic and diluted $ (0.32 ) $ (0.74 ) $ (0.70 ) $ (1.08 ) |
Schedule of Potentially Dilutive Common Stock Equivalents at Each Year End | The following table includes potentially dilutive common stock equivalents as of June 30, 2019 and 2018. The Company generated a net loss attributable to the Company’s common stockholders for the three and six months ended June 30, 2019 and 2018. Accordingly, the effect of dilutive securities is not considered in the loss per share for such periods because their effect would be antidilutive on the net loss. As of June 30, 2019 2018 Potentially dilutive securities: Convertible Preferred Stock: Seed I — 3,413,235 Seed II — 3,301,326 Series AA — 7,264,489 Stock Options 846,919 4,335,166 Restricted Stock Units 580,991 — Warrants (1) 399,726 406,337 Potentially dilutive securities at period end 1,827,636 18,720,553 (1) Includes the Debt Warrants as of June 30, 2019 and the 2014 Warrants as of June 30, 2018. See Note 7 – Debt Note 13 – Stockholders’ Equity |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Reclassification Effect on Financial Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounting Polices [Line Items] | ||||
Operations and support | $ 11,918 | $ 21,034 | ||
Sales and marketing | $ 15,339 | 2,805 | $ 25,662 | 5,169 |
General and administrative | $ 12,380 | 7,842 | $ 31,298 | 11,355 |
As Previously Reported | ||||
Accounting Polices [Line Items] | ||||
Operations and support | 10,498 | 18,414 | ||
Sales and marketing | 2,786 | 5,139 | ||
General and administrative | 9,256 | 13,957 | ||
Related party expenses | 25 | 48 | ||
Reclassification | ||||
Accounting Polices [Line Items] | ||||
Operations and support | 1,420 | 2,620 | ||
Sales and marketing | 19 | 30 | ||
General and administrative | (1,414) | (2,602) | ||
Related party expenses | $ (25) | $ (48) |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Summary of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
REVENUE | $ 51,342 | $ 16,160 | $ 99,374 | $ 28,569 |
Transaction Fees | ||||
REVENUE | 50,227 | 15,406 | 97,195 | 27,249 |
Setup and Integration Fees | ||||
REVENUE | 1,081 | 626 | 2,103 | 1,116 |
Other Revenue | ||||
REVENUE | $ 34 | $ 128 | $ 76 | $ 204 |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Polices [Line Items] | ||||||
Gift cards redemption not yet been utilized | $ 3,472,000 | $ 3,472,000 | $ 3,314,000 | |||
Accounts receivable, net | 7,149,000 | $ 7,149,000 | 3,687,000 | $ 2,124,000 | ||
Capitalized sales incentives amortization period | 2 years | |||||
Deferred costs | 1,454,000 | $ 1,454,000 | 986,000 | |||
Deferred costs, current | 990,000 | 990,000 | 679,000 | |||
Amortization expense | 242,000 | $ 121,000 | 451,000 | $ 216,000 | ||
Capitalized cost, impairment loss | $ 0 | 0 | 0 | |||
ASC Topic 340-40, Other Assets and Deferred Costs | ||||||
Accounting Polices [Line Items] | ||||||
Capitalized sales incentives amortization period | 2 years | |||||
Deferred costs | 2,338,000 | $ 2,338,000 | 1,710,000 | |||
Deferred costs, current | 1,611,000 | 1,611,000 | $ 1,190,000 | |||
Amortization expense | 425,000 | $ 220,000 | 799,000 | $ 397,000 | ||
Other Current Liabilities | ||||||
Accounting Polices [Line Items] | ||||||
Gift cards redemption not yet been utilized | $ 579,000 | $ 579,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) | Jun. 18, 2019USD ($)$ / sharesshares | Jan. 17, 2019USD ($)$ / sharesshares | Nov. 15, 2018USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Net loss | $ (24,852,000) | $ (7,399,000) | $ (49,601,000) | $ (10,826,000) | |||||
Goodwill | 225,946,000 | 225,946,000 | $ 1,408,000 | $ 1,408,000 | |||||
BiteSquad.com, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition date | Jan. 17, 2019 | ||||||||
Business combination, cash consideration | $ 193,098,000 | $ 192,949,000 | |||||||
Business combination, share price | $ / shares | $ 11.95 | $ 11.95 | |||||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||||
Business combination, share issued | shares | 10,592,000 | ||||||||
Business combination, pay down of indebtedness | $ 12,705,000 | $ 12,705,000 | |||||||
Business combination, additional cash payment | $ 149,000 | ||||||||
Percentage of goodwill expected to be deductible for federal income tax | 81.00% | ||||||||
Revenue | 26,147,000 | 49,062,000 | |||||||
Net loss | 7,368,000 | 11,951,000 | |||||||
Goodwill | $ 224,538,000 | $ 224,538,000 | 224,538,000 | ||||||
Aggregate consideration for business combination | $ 332,377,000 | ||||||||
BiteSquad.com, LLC | General and Administrative | |||||||||
Business Acquisition [Line Items] | |||||||||
Business acquisition, direct and incremental costs | $ 6,956,000 | ||||||||
BiteSquad.com, LLC | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, share issued | shares | 10,591,968 | ||||||||
Waitr Incorporated | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, cash consideration | $ 71,680,000 | ||||||||
Business combination, share price | $ / shares | $ 10 | ||||||||
Goodwill | $ 0 | ||||||||
Other Intangible Assets | $ 0 | ||||||||
Business combination share exchange ratio | 0.8970953 | 0.8970953 | 0.8970953 | ||||||
Aggregate consideration for business combination | $ 300,000,000 | ||||||||
Waitr Incorporated | Common Stock | |||||||||
Business Acquisition [Line Items] | |||||||||
Business combination, share issued | shares | 22,831,697 |
Business Combinations - Schedul
Business Combinations - Schedule of Merger Consideration (Details) - BiteSquad.com, LLC - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jun. 18, 2019 | Jan. 17, 2019 |
Business Acquisition [Line Items] | ||
Shares transferred at closing | 10,592 | |
Value per share | $ 11.95 | $ 11.95 |
Total share consideration | $ 126,574 | |
Plus: cash transferred to Bite Squad members | 193,098 | $ 192,949 |
Plus: pay down of debt | 12,705 | $ 12,705 |
Total merger consideration | $ 332,377 |
Business Combinations - Prelimi
Business Combinations - Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 18, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 225,946 | $ 1,408 | $ 1,408 | |
BiteSquad.com, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 11,819 | |||
Settlements due from credit card processors | 1,097 | |||
Accounts receivable | 2,048 | |||
Inventory | 940 | |||
Prepaid expenses and other | 562 | |||
Intangible assets | 104,400 | |||
Loans receivable | 336 | |||
Other noncurrent assets | 163 | |||
Restaurant food liability | (930) | |||
Accounts payable | (953) | |||
Accrued payroll | (1,125) | |||
Accrued taxes | (1,818) | |||
Other accruals | (8,652) | |||
Indebtedness | (48) | |||
Total assets acquired and liabilities assumed | 107,839 | |||
Goodwill | $ 224,538 | 224,538 | ||
Total merger consideration | $ 332,377 |
Business Combinations - Summary
Business Combinations - Summary of Identifiable Intangible Assets Acquired (Details) - BiteSquad.com, LLC - USD ($) $ in Thousands | Jun. 18, 2019 | Jan. 17, 2019 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired, Value | $ 104,400 | |
Customer Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired, Amortizable Life (in years) | 7 years 6 months | |
Identifiable intangible assets acquired, Value | $ 81,000 | $ 81,000 |
Trade Name | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired, Amortizable Life (in years) | 3 years | |
Identifiable intangible assets acquired, Value | $ 5,400 | |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Identifiable intangible assets acquired, Amortizable Life (in years) | 4 years | |
Identifiable intangible assets acquired, Value | $ 18,000 |
Business Combinations - Summa_2
Business Combinations - Summary of Supplemental Condensed Consolidated Results of Company on an Unaudited Pro Forma Basis (Details) - BiteSquad.com, LLC - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Net Revenue | $ 51,341 | $ 36,350 | $ 103,659 | $ 65,719 |
Net Loss | $ 24,258 | $ 13,157 | $ 50,668 | $ 21,386 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | |||
Credit card receivables | $ 5,228 | $ 1,871 | |
Receivables from restaurants and customers | 2,289 | 1,991 | |
Accounts receivable | 7,517 | 3,862 | |
Less: allowance for doubtful accounts and chargebacks | (368) | (175) | |
Accounts receivable, net | $ 7,149 | $ 3,687 | $ 2,124 |
Intangibles Assets and Goodwi_3
Intangibles Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (8,397) | $ (536) |
Accumulated Impairment | (607) | (589) |
Intangible Assets, Net | 96,863 | |
Gross Carrying Amount | 105,867 | 1,386 |
Intangible Assets, Net | 96,863 | 261 |
Trademarks/Trade name/Patents | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount, Indefinite-lived Intangible Assets | 5,405 | 5 |
Accumulated Amortization, Indefinite-lived Intangible Assets | (830) | |
Net Carrying Amount, Indefinite-lived Intangible Assets | 4,575 | 5 |
Software | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,320 | 1,239 |
Accumulated Amortization | (2,550) | (536) |
Accumulated Impairment | (607) | (589) |
Intangible Assets, Net | 16,163 | 114 |
Customer Relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | 81,142 | 142 |
Accumulated Amortization | (5,017) | |
Intangible Assets, Net | $ 76,125 | $ 142 |
Intangibles Assets and Goodwi_4
Intangibles Assets and Goodwill - Additional Information (Details) - USD ($) | Jun. 18, 2019 | Jan. 17, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Intangible Assets [Line Items] | |||||||||
Impairment loss | $ 18,000 | ||||||||
Amortization expense | $ 4,310,000 | $ 28,000 | $ 7,945,000 | $ 58,000 | |||||
Goodwill | 225,946,000 | 225,946,000 | $ 1,408,000 | $ 1,408,000 | |||||
Goodwill impairment losses | 0 | 0 | |||||||
BiteSquad.com, LLC | |||||||||
Intangible Assets [Line Items] | |||||||||
Identifiable intangible assets acquired, Value | $ 104,400,000 | ||||||||
Goodwill | 224,538,000 | $ 224,538,000 | $ 224,538,000 | ||||||
BiteSquad.com, LLC | Trade Names | |||||||||
Intangible Assets [Line Items] | |||||||||
Indefinite-lived intangible assets acquired | $ 5,400,000 | ||||||||
BiteSquad.com, LLC | Customer Relationships | |||||||||
Intangible Assets [Line Items] | |||||||||
Identifiable intangible assets acquired, Value | $ 81,000,000 | 81,000,000 | |||||||
BiteSquad.com, LLC | Developed Technology | |||||||||
Intangible Assets [Line Items] | |||||||||
Identifiable intangible assets acquired, Value | $ 18,000,000 |
Intangibles Assets and Goodwi_5
Intangibles Assets and Goodwill - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
The remainder of 2019 | $ 8,640 |
2020 | 17,227 |
2021 | 17,165 |
2022 | 15,581 |
2023 | 10,800 |
Thereafter | 27,450 |
Intangible Assets, Net | $ 96,863 |
Intangibles Assets and Goodwi_6
Intangibles Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 1,408 | $ 1,408 |
Acquisition during the period | 224,538 | 0 |
Ending balance | $ 225,946 | $ 1,408 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Accrued advertising expenses | $ 1,328 | $ 887 |
Accrued transaction expenses | 4,000 | |
Accrued sales tax payable | 889 | |
Other current liabilities | 6,380 | 3,621 |
Total other current liabilities | $ 12,597 | $ 4,508 |
Debt - Schedule of Debt Obligat
Debt - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 26, 2019 | Dec. 31, 2018 | Jun. 04, 2018 |
Debt Instrument [Line Items] | ||||
Long-term debt, gross | $ 127,285 | $ 5,032 | $ 85,000 | $ 2,172 |
Total long-term debt | 118,364 | 80,985 | ||
Short-term loans | 5,032 | 658 | ||
Total outstanding debt | 123,396 | 81,643 | ||
Term Loans | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 67,080 | 25,000 | ||
Less: unamortized debt issuance costs | (5,903) | (2,268) | ||
Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, gross | 60,205 | 60,000 | ||
Less: unamortized debt issuance costs | $ (3,018) | $ (1,747) |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Jun. 26, 2019 | May 21, 2019 | Nov. 15, 2018 | Jun. 04, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Aug. 31, 2019 | Jan. 17, 2019 | May 04, 2014 |
Debt Instrument [Line Items] | ||||||||||||
Interest expense, related outstanding debt | $ 2,190,000 | $ 290,000 | $ 3,795,000 | $ 462,000 | ||||||||
Debt instrument, face amount | $ 25,000,000 | |||||||||||
Debt instrument consolidated minimum liquidity amount | $ 15,000,000 | |||||||||||
Debt instrument, maturity date | Apr. 1, 2020 | Mar. 21, 2019 | Aug. 31, 2019 | |||||||||
Debt instrument stated interest rate | 4.08% | 7.00% | 3.39% | 7.125% | ||||||||
Warrants exercisable for number of shares of common stock | 384,615 | 399,726 | 399,726 | |||||||||
Warrants issued to purchase common stock per share | $ 12.51 | $ 13 | $ 12.51 | $ 12.51 | $ 0.01 | |||||||
Debt instrument conversion cap of common stock percentage | 9.90% | |||||||||||
Debt conversion, description | The Notes include customary anti-dilution protection, including broad-based weighted average adjustments for issuances of additional shares (down-round features), and the shares issuable upon their conversion have certain registration rights. The Company may only prepay the Notes with the consent of the holders of at least a majority-in-interest of the outstanding Notes. Prior to the Offering, at any time at the holder’s election, each Note was convertible in whole or in part into shares of the Company’s common stock at a rate of $13.00 per share (subject to a 9.9% conversion cap). | |||||||||||
Gain on extinguishment of debt | $ 1,897,000 | $ 1,897,000 | $ 1,897,000 | |||||||||
Convertible Promissory Notes, par | $ 5,032,000 | $ 2,172,000 | 127,285,000 | 85,000,000 | 127,285,000 | |||||||
Short term loan outstanding | 5,032,000 | 658,000 | 5,032,000 | |||||||||
Convertible Notes Payable | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 60,000,000 | 60,205,000 | 60,205,000 | |||||||||
Debt instrument stated interest rate | 1.00% | |||||||||||
Debt instrument, interest rate, effective percentage | 7.77% | |||||||||||
Debt instrument revised stated interest rate | 6.00% | |||||||||||
Debt instrument maturity year | 4 years | |||||||||||
Paid in kind interest amount | 205,000 | |||||||||||
Scenario, Forecast | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument prepayment premium | 5.00% | |||||||||||
Debt Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, interest rate, effective percentage | 10.32% | |||||||||||
Original Term Loans and Additional Term Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, maturity date | Nov. 15, 2022 | |||||||||||
Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, fair value amount | $ 56,894,000 | |||||||||||
Debt instrument carrying amount | 58,421,000 | |||||||||||
Term Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, fair value amount | 61,014,000 | |||||||||||
Debt instrument carrying amount | $ 61,385,000 | |||||||||||
Convertible Promissory Notes, par | $ 67,080,000 | $ 25,000,000 | $ 67,080,000 | |||||||||
Intermediate Holdings and Waitr Inc. | Additional Term Loans | Common Stock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Shares issued to lenders in connection with debt | 325,000 | |||||||||||
Intermediate Holdings and Waitr Inc. | Additional Term Loans | Senior Secured First Priority Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument, face amount | $ 42,080,000 |
Debt - Series 2018 Convertible
Debt - Series 2018 Convertible Promissory Notes - Additional Information (Details) - USD ($) | Mar. 15, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 26, 2019 | Jan. 17, 2019 | Nov. 15, 2018 | Jun. 04, 2018 |
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 25,000,000 | ||||||
Proceeds from convertible notes issuance | $ 0 | $ 1,410,000 | |||||
Debt instrument stated interest rate | 4.08% | 7.125% | 7.00% | 3.39% | |||
Series 2018 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, term | 24 months | ||||||
Debt instrument, face amount | $ 2,470,000 | ||||||
Proceeds from convertible notes issuance | 1,410,000 | ||||||
Promissory notes issued for advertising services receivable | $ 1,000,000 | ||||||
Debt instrument stated interest rate | 8.00% | ||||||
Series 2018 Notes | Indie Plate Limited Liability Company | |||||||
Debt Instrument [Line Items] | |||||||
Promissory notes issued for asset acquisition | $ 60,000 |
Derivatives - Amount of Gain Re
Derivatives - Amount of Gain Recognized In Consolidated Statements of Operations on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Gain on derivatives | $ (165) | $ (327) |
Deferred Revenue - Additional I
Deferred Revenue - Additional Information (Details) - Setup and Integration Fees - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deferred revenue | $ 4,670 | $ 2,358 | ||||
Recognition of deferred revenue | $ 1,081 | $ 432 | $ 2,104 | $ 969 | ||
Revenue expected to be recognized from remaining performance obligations | $ 3,472 | $ 3,472 |
Deferred Revenue - Additional_2
Deferred Revenue - Additional Information (Details 1) - Setup and Integration Fees $ in Thousands | Jun. 30, 2019USD ($) |
Revenue expected to be recognized from remaining performance obligations | $ 3,472 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-01 | |
Revenue expected to be recognized from remaining performance obligations | $ 4,520 |
Revenue, remaining performance obligation, recognition period | 12 months |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (32) | $ 23 | $ 30 | $ 34 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Nov. 27, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||||||
Accrued workers’ compensation liability | $ 603 | $ 603 | $ 908 | |||
General and administrative expense | 12,380 | $ 7,842 | 31,298 | $ 11,355 | ||
GIC Claims | ||||||
Loss Contingencies [Line Items] | ||||||
Accrued workers’ compensation liability | 977 | 977 | $ 1,317 | |||
Workers’ Compensation Liability | ||||||
Loss Contingencies [Line Items] | ||||||
General and administrative expense | $ 0 | $ 0 | $ 0 | $ 0 | ||
Workers’ Compensation Liability | LIGA | ||||||
Loss Contingencies [Line Items] | ||||||
Exceeded the threshold determining eligibility for claims coverage | $ 25,000 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) $ in Thousands | May 21, 2019USD ($) |
Notes | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Estimated fair value | $ 56,894 |
Fair value hierarchy level [Extensible List] | us-gaap:FairValueInputsLevel3Member |
Valuation technique [Extensible List] | wtrh:GoldmanSachsConvertibleBondModelMember |
Notes | Volatility Assumption | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Measurement inputs | 0.54 |
Notes | Estimated Yield | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Measurement inputs | 0.1329 |
Term Loans | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Estimated fair value | $ 61,014 |
Fair value hierarchy level [Extensible List] | us-gaap:FairValueInputsLevel3Member |
Valuation technique [Extensible List] | wtrh:BlackDermanToyLatticeBondPricingModelMember |
Term Loans | Estimated Yield | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |
Measurement inputs | 0.1072 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Jun. 18, 2019 | May 21, 2019 | Jan. 17, 2019 | May 14, 2014 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Nov. 15, 2018 | May 04, 2014 |
Class Of Stock [Line Items] | |||||||||||
Common stock, shares authorized | 249,000,000 | 249,000,000 | 249,000,000 | ||||||||
Common stock, shares issued | 76,134,094 | 76,134,094 | 54,035,538 | ||||||||
Common stock, shares outstanding | 76,134,094 | 76,134,094 | 54,035,538 | ||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Number of votes per share | one vote per share | ||||||||||
Preferred stock shares authorized | 1,000,000 | 1,000,000 | 1,000,000 | ||||||||
Preferred stock par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Preferred stock, shares issued | 0 | 0 | 0 | ||||||||
Preferred stock, shares outstanding | 0 | 0 | 0 | ||||||||
Gross proceeds from issuance of common stock | $ 50,002,000 | $ 0 | |||||||||
Public warrants outstanding | 406,337 | ||||||||||
Warrants exercisable for number of shares of common stock | 399,726 | 399,726 | 384,615 | ||||||||
Warrants issued to purchase common stock per share | $ 12.51 | $ 12.51 | $ 12.51 | $ 13 | $ 0.01 | ||||||
Debt warrant expiration term | 4 years | ||||||||||
Vesting percentage of warrants | 12.50% | ||||||||||
Class of warrant or right issued | 405,884 | ||||||||||
Stock issued to cover warrant cost | 453 | ||||||||||
General and administrative | $ 12,380,000 | $ 7,842,000 | $ 31,298,000 | 11,355,000 | |||||||
2014 Warrants | |||||||||||
Class Of Stock [Line Items] | |||||||||||
General and administrative | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Warrant Exchange Offer | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Public warrants outstanding | 25,000,000 | 25,000,000 | |||||||||
Warrants exchanged for common stock shares | 4,494,889 | ||||||||||
Intermediate Holdings and Waitr Inc. | Common Stock | Additional Term Loans | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares issued to lenders in connection with debt | 325,000 | ||||||||||
BiteSquad.com, LLC | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock, par value | $ 0.0001 | ||||||||||
Shares transferred at closing | 10,592,000 | ||||||||||
BiteSquad.com, LLC | Common Stock | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Shares transferred at closing | 10,591,968 | ||||||||||
Follow-on Public Offering | |||||||||||
Class Of Stock [Line Items] | |||||||||||
Common stock, shares issued | 6,757,000 | ||||||||||
Stock issued, price per share | $ 7.40 | ||||||||||
Gross proceeds from issuance of common stock | $ 50,002,000 |
Loss Per Share Attributable t_3
Loss Per Share Attributable to Common Stockholders - Additional Information (Details) | Nov. 15, 2018 | Jun. 30, 2018 | Jun. 30, 2018 |
Waitr Incorporated | |||
Business combination share exchange ratio | 0.8970953 | 0.8970953 | 0.8970953 |
Loss Per Share Attributable t_4
Loss Per Share Attributable to Common Stockholders - Schedule of Calculation of Basic and Diluted Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | May 21, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Numerator: | |||||
Net loss | $ (24,852) | $ (7,399) | $ (49,601) | $ (10,826) | |
Gain on extinguishment of debt | $ 1,897 | 1,897 | 1,897 | ||
Net loss attributable to common stockholders – basic and diluted | $ (22,955) | $ (7,399) | $ (47,704) | $ (10,826) | |
Denominator: | |||||
Weighted average common shares outstanding – basic and diluted | 72,416,614 | 9,997,815 | 68,492,911 | 10,023,853 | |
Loss per share – basic and diluted | $ (0.32) | $ (0.74) | $ (0.70) | $ (1.08) |
Loss Per Share Attributable t_5
Loss Per Share Attributable to Common Stockholders - Schedule of Potentially Dilutive Common Stock Equivalents at Each Year End (Details) - shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Potentially dilutive securities: | ||
Potentially dilutive securities at period end | 1,827,636 | 18,720,553 |
Stock Options | ||
Potentially dilutive securities: | ||
Stock Options and Warrants | 846,919 | 4,335,166 |
Restricted Stock Units | ||
Potentially dilutive securities: | ||
Stock Options and Warrants | 580,991 | |
Warrants | ||
Potentially dilutive securities: | ||
Stock Options and Warrants | 399,726 | 406,337 |
Convertible Preferred Stock: Seed I | ||
Potentially dilutive securities: | ||
Convertible Preferred Stock | 3,413,235 | |
Convertible Preferred Stock: Seed II | ||
Potentially dilutive securities: | ||
Convertible Preferred Stock | 3,301,326 | |
Convertible Preferred Stock: Seed AA | ||
Potentially dilutive securities: | ||
Convertible Preferred Stock | 7,264,489 |
Related-Party Transaction - Add
Related-Party Transaction - Additional Information (Details) | Nov. 15, 2018shares |
2018 Omnibus Incentive Plan | |
Related Party Transaction [Line Items] | |
Restricted shares, awarded for consulting agreement | 150,000 |