Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Aterian, Inc. | ||
Entity Central Index Key | 0001757715 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Common Stock, Shares Outstanding | 62,093,569 | ||
Entity File Number | 001-38937 | ||
Entity Tax Identification Number | 83-1739858 | ||
Entity Address, Address Line One | 37 East 18th Street | ||
Entity Address, Address Line Two | 7th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10003 | ||
City Area Code | (347) | ||
Local Phone Number | 676-1681 | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of each class | Common stock, par value $0.0001 per share | ||
Trading Symbol(s) | ATER | ||
Name of each exchange on which registered | NASDAQ | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 504 | ||
ICFR Auditor Attestation Flag | false | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | New York, NY | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for the 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K, to the extent described in Part III. Such definitive proxy statement, or an amendment to this Annual Report on Form 10-K, will be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year-ended December 31, 2021. Auditor Firm Id: 34 Auditor Name: Deloitte & Touche LLP Auditor Location: New York, NY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash | $ 30,317 | $ 26,718 |
Accounts receivable—net | 10,478 | 5,747 |
Inventory | 63,045 | 31,582 |
Prepaid and other current assets | 21,034 | 11,111 |
Total current assets | 124,874 | 75,158 |
PROPERTY AND EQUIPMENT—net | 1,254 | 169 |
GOODWILL—net | 119,941 | 47,318 |
OTHER INTANGIBLES—net | 64,955 | 31,460 |
OTHER NON-CURRENT ASSETS | 2,546 | 3,349 |
TOTAL ASSETS | 313,570 | 157,454 |
CURRENT LIABILITIES: | ||
Credit facility | 32,845 | 12,190 |
Accounts payable | 21,716 | 14,856 |
Term loan | 21,600 | |
Seller notes | 7,577 | 16,231 |
Contingent earn-out liability | 3,983 | 1,515 |
Accrued and other current liabilities | 17,621 | 8,340 |
Total current liabilities | 83,742 | 74,732 |
OTHER LIABILITIES | 360 | 1,841 |
CONTINGENT EARN-OUT LIABILITY | 5,240 | 21,016 |
TERM LOANS | 36,483 | |
Total liabilities | 89,342 | 134,072 |
COMMITMENTS AND CONTINGENCIES (Note 12) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, par value $0.0001 per share—500,000,000 shares authorized and 27,074,791 shares outstanding at December 31, 2020; 500,000,000 shares authorized and 55,090,237 shares outstanding at December 31, 2021 | 5 | 3 |
Additional paid-in capital | 653,650 | 216,305 |
Accumulated deficit | (428,959) | (192,935) |
Accumulated other comprehensive income | (468) | 9 |
Total stockholders’ equity | 224,228 | 23,382 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 313,570 | $ 157,454 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares outstanding | 55,090,237 | 27,074,791 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
NET REVENUE | $ 247,767 | $ 185,704 | $ 114,451 |
COST OF GOODS SOLD | 125,904 | 100,958 | 69,411 |
GROSS PROFIT | 121,863 | 84,746 | 45,040 |
OPERATING EXPENSES: | |||
Sales and distribution | 127,369 | 68,005 | 55,206 |
Research and development | 9,837 | 8,130 | 10,661 |
General and administrative | 45,099 | 30,631 | 33,506 |
Settlement of a contingent earn-out liability | 4,164 | ||
Change in fair value of contingent earn-out liabilities | (30,529) | 12,731 | |
TOTAL OPERATING EXPENSES: | 155,940 | 119,497 | 99,373 |
OPERATING LOSS | (34,077) | (34,751) | (54,333) |
INTEREST EXPENSE—net | 12,655 | 4,979 | 4,386 |
CHANGE IN FAIR VALUE OF DERIVATIVE LIABILITY | 3,254 | ||
LOSS ON EXTINGUISHMENT OF DEBT | 138,859 | 2,037 | |
CHANGE IN FAIR VALUE OF WARRANT LIABILITY | 26,455 | 21,338 | |
LOSS ON INITIAL ISSUANCE OF WARRANTS | 20,147 | ||
OTHER EXPENSE (INCOME)—net | 45 | (27) | 41 |
LOSS BEFORE INCOME TAXES | (235,492) | (63,078) | (58,760) |
PROVISION FOR INCOME TAXES | 532 | 48 | 29 |
NET LOSS | $ (236,024) | $ (63,126) | $ (58,789) |
Net loss per share, basic and diluted | $ (6.67) | $ (3.68) | $ (4.35) |
Weighted-average number of shares outstanding, basic and diluted | 35,379,005 | 17,167,999 | 13,516,844 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET LOSS | $ (236,024) | $ (63,126) | $ (58,789) |
OTHER COMPREHENSIVE INCOME: | |||
Foreign currency translation adjustments | (477) | (48) | 17 |
Other comprehensive income (loss) | (477) | (48) | 17 |
COMPREHENSIVE LOSS | $ (236,501) | $ (63,174) | $ (58,772) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Asset Purchase Agreement | High Trail | Follow-on Public Offering | November 2019 | July 13, 2020 | August 10, 2020 | Common Stock | Common StockAsset Purchase Agreement | Common StockHigh Trail | Common StockFollow-on Public Offering | Common StockMarch 20, 2019 | Common StockMay 17, 2019 | Common StockJune 12, 2019 | Common StockAugust 2019 | Common StockNovember 2019 | Common StockMarch Twelve Two Thousand Twenty | Common StockJune 30, 2020 | Common StockDecember 17, 2020 | Common StockJuly 13, 2020 | Common StockJuly 20, 2020 | Common StockSeptember 30, 2020 | Common StockAugust 10, 2020 | Common StockDecember 14, 2020 | Additional Paid-in Capital | Additional Paid-in CapitalAsset Purchase Agreement | Additional Paid-in CapitalHigh Trail | Additional Paid-in CapitalFollow-on Public Offering | Additional Paid-in CapitalNovember 2019 | Additional Paid-in CapitalJuly 13, 2020 | Additional Paid-in CapitalAugust 10, 2020 | Accumulated Deficit | Accumulated Other Comprehensive Income |
Beginning balance at Dec. 31, 2018 | $ 5,369 | $ 1 | $ 76,348 | $ (71,020) | $ 40 | ||||||||||||||||||||||||||||
Beginning balance, shares at Dec. 31, 2018 | 11,534,190 | ||||||||||||||||||||||||||||||||
Net loss | (58,789) | (58,789) | |||||||||||||||||||||||||||||||
Issuance of restricted common stock, shares | 2,406,618 | 19,407 | 64,982 | 84,975 | 25,990 | ||||||||||||||||||||||||||||
Issuance of common stock | 29,447 | $ 1 | 29,446 | ||||||||||||||||||||||||||||||
Issuance of common stock, shares | 3,600,000 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 34,681 | 34,681 | |||||||||||||||||||||||||||||||
Exercise of stock options | 2 | 2 | |||||||||||||||||||||||||||||||
Exercise of stock options, shares | 487 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 17 | 17 | |||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2019 | 10,727 | $ 2 | 140,477 | (129,809) | 57 | ||||||||||||||||||||||||||||
Ending balance, shares at Dec. 31, 2019 | 17,736,649 | ||||||||||||||||||||||||||||||||
Net loss | (63,126) | (63,126) | |||||||||||||||||||||||||||||||
Issuance of restricted common stock | $ 659 | $ 49 | $ 760 | $ 659 | $ 49 | $ 760 | |||||||||||||||||||||||||||
Issuance of restricted common stock, shares | 90,000 | 439,145 | 134,364 | 23,500 | 10,000 | 95,500 | 22,700 | 90,000 | 890,000 | ||||||||||||||||||||||||
Forfeiture of restricted common stock, shares | 371,329 | (134,366) | |||||||||||||||||||||||||||||||
Issuance of 25,000 warrants on August 18, 2020 | 204 | 204 | |||||||||||||||||||||||||||||||
Issuance of common stock | $ 29,077 | $ 23,416 | $ 1 | $ 29,076 | $ 23,416 | ||||||||||||||||||||||||||||
Issuance of common stock, shares | 4,220,000 | 3,860,710 | |||||||||||||||||||||||||||||||
Shares of common stock retired in connection with vesting | (150) | (150) | |||||||||||||||||||||||||||||||
Shares of restricted common stock retired in connection with vesting, shares | 42,779 | ||||||||||||||||||||||||||||||||
Stock-based compensation | 21,770 | 21,770 | |||||||||||||||||||||||||||||||
Exercise of stock options | 44 | 44 | |||||||||||||||||||||||||||||||
Exercise of stock options, shares | 10,697 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (48) | (48) | |||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2020 | 23,382 | $ 3 | 216,305 | (192,935) | 9 | ||||||||||||||||||||||||||||
Ending balance, shares at Dec. 31, 2020 | 27,074,791 | ||||||||||||||||||||||||||||||||
Net loss | (236,024) | (236,024) | |||||||||||||||||||||||||||||||
Issuance of restricted common stock, shares | 2,025,597 | ||||||||||||||||||||||||||||||||
Forfeiture of restricted common stock, shares | (647,659) | ||||||||||||||||||||||||||||||||
Issuance of 25,000 warrants on August 18, 2020 | 97,088 | 97,088 | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock option grants | 9,033 | 9,033 | |||||||||||||||||||||||||||||||
Issuance of common stock upon exercise of stock option grants, shares | 1,011,422 | ||||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of warrants | 40,318 | 40,318 | |||||||||||||||||||||||||||||||
Issuance of common stock related to exercise of warrants, shares | 6,405,605 | ||||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisition of Healing Solutions assets | 47,369 | 47,369 | |||||||||||||||||||||||||||||||
Issuance of common stock in connection with acquisition of Healing Solutions assets, shares | 2,796,001 | ||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 7,669 | 7,669 | |||||||||||||||||||||||||||||||
Issuance of restricted stock awards, shares | 769,104 | ||||||||||||||||||||||||||||||||
Issuance of warrants to High Trail | 39,016 | 39,016 | |||||||||||||||||||||||||||||||
Issuance of warrants to Midcap | 589 | 589 | |||||||||||||||||||||||||||||||
Reclassification of warrants to liability | (21,260) | (21,260) | |||||||||||||||||||||||||||||||
Warrant modification on extinguishment | 17,399 | 17,399 | |||||||||||||||||||||||||||||||
Issuance of common stock | 36,735 | $ 11,075 | $ 129,620 | $ 2 | 36,735 | $ 11,075 | $ 129,618 | ||||||||||||||||||||||||||
Issuance of common stock, shares | 2,666,667 | 704,548 | 12,284,161 | ||||||||||||||||||||||||||||||
Stock-based compensation | $ 22,696 | 22,696 | |||||||||||||||||||||||||||||||
Exercise of stock options, shares | 1,011,422 | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | $ (477) | (477) | |||||||||||||||||||||||||||||||
Ending balance at Dec. 31, 2021 | $ 224,228 | $ 5 | $ 653,650 | $ (428,959) | $ (468) | ||||||||||||||||||||||||||||
Ending balance, shares at Dec. 31, 2021 | 55,090,237 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - shares | Dec. 17, 2020 | Dec. 14, 2020 | Nov. 16, 2020 | Sep. 30, 2020 | Aug. 26, 2020 | Aug. 10, 2020 | Jul. 20, 2020 | Jul. 13, 2020 | Mar. 12, 2020 | Jun. 14, 2019 | Jun. 12, 2019 | May 17, 2019 | Mar. 20, 2019 | Nov. 30, 2019 | Aug. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Follow-on Public Offering | |||||||||||||||||||
Issuance of common stock, shares | 3,860,710 | ||||||||||||||||||
Common Stock | |||||||||||||||||||
Issuance of restricted common stock, shares | 23,500 | 890,000 | 90,000 | 22,700 | 90,000 | 95,500 | 10,000 | 439,145 | 64,982 | 88,548 | 2,406,618 | 74,510 | 84,975 | 134,364 | 2,025,597 | ||||
Forfeiture of restricted common stock, shares | 371,329 | 69,141 | 48,520 | 134,366 | (647,659) | ||||||||||||||
Issuance of common stock, shares | 3,600,000 | 2,666,667 | 3,600,000 | ||||||||||||||||
Common Stock | Asset Purchase Agreement | |||||||||||||||||||
Issuance of common stock, shares | 704,548 | 4,220,000 | |||||||||||||||||
Common Stock | Follow-on Public Offering | |||||||||||||||||||
Issuance of common stock, shares | 3,860,710 |
Consolidated Statements of St_3
Consolidated Statements of Stockholders' Equity (Parenthetical 1) | Aug. 18, 2020shares |
Warrant | |
Issuance of warrants | 25,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES: | |||
Net loss | $ (236,024,000) | $ (63,126,000) | $ (58,789,000) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 7,326,000 | 552,000 | 183,000 |
Provision for sales returns | 43,000 | 92,000 | 134,000 |
Amortization of deferred financing cost and debt discounts | 7,742,000 | 2,245,000 | 1,218,000 |
Stock-based compensation | 28,987,000 | 22,716,000 | 34,681,000 |
Change in fair value of contingent earn-out liabilities | (30,529,000) | 12,731,000 | |
Loss in connection with settlement of earn-out | 4,164,000 | ||
Loss in connection with the change in warrant fair value | 26,455,000 | 21,338,000 | |
Loss on initial issuance of warrants | 20,147,000 | ||
Loss on extinguishment | 138,859,000 | 2,037,000 | |
Provision for barter credits | 1,000,000 | ||
Loss from derivative liability discount related to term loan | 3,254,000 | ||
Allowance for doubtful accounts and other | 4,200,000 | 94,000 | |
Changes in assets and liabilities: | |||
Accounts receivable | (4,554,000) | (4,703,000) | 309,000 |
Inventory | (19,303,000) | 18,659,000 | (5,360,000) |
Prepaid and other current assets | (7,856,000) | 1,513,000 | (1,004,000) |
Accounts payable, accrued and other liabilities | 14,120,000 | (6,991,000) | 3,334,000 |
Cash provided (used) by operating activities | (41,969,000) | 6,091,000 | (25,200,000) |
INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (32,000) | (89,000) | (114,000) |
Proceeds on sale of fixed assets | 6,000 | ||
Cash used in investing activities | (44,905,000) | (39,054,000) | (1,284,000) |
FINANCING ACTIVITIES: | |||
Proceeds from initial public offering, net of issuance costs | 36,000,000 | ||
Issuance costs from initial public offering | (5,446,000) | ||
Proceeds from warrant exercise | 9,085,000 | ||
Proceeds from cancellation of warrant | 16,957,000 | ||
Proceeds from issuance of common stock from follow-on public offering, net of issuance costs | 36,735,000 | 23,416,000 | |
Proceeds from exercise of stock options | 9,033,000 | ||
Payment of earnout to Squatty Potty | (7,971,000) | ||
Proceeds from exercise of stock options | 44,000 | ||
Tax paid in connection with RSAs | (150,000) | ||
Borrowings from MidCap credit facilities | 48,750,000 | 123,633,000 | 98,663,000 |
Insurance financing proceeds | 2,424,000 | 2,660,000 | 3,833,000 |
Insurance obligation payments | (3,048,000) | (3,066,000) | (2,783,000) |
Capital lease obligation payments | (32,000) | (55,000) | |
Cash provided by financing activities | 95,569,000 | 32,319,000 | 36,566,000 |
EFFECT OF EXCHANGE RATE ON CASH | (477,000) | (48,000) | (1,000) |
NET CHANGE IN CASH AND RESTRICTED CASH FOR THE YEAR | 8,218,000 | (692,000) | 10,081,000 |
CASH AND RESTRICTED CASH AT BEGINNING OF YEAR | 30,097,000 | 30,789,000 | 20,708,000 |
CASH AND RESTRICTED CASH AT END OF YEAR | 38,315,000 | 30,097,000 | 30,789,000 |
RECONCILIATION OF CASH AND RESTRICTED CASH | |||
CASH | 30,317,000 | 26,718,000 | 30,353,000 |
RESTRICTED CASH—Prepaid and other current assets | 7,849,000 | 3,250,000 | 307,000 |
RESTRICTED CASH—Other non-current assets | 149,000 | 129,000 | 129,000 |
CASH AND RESTRICTED CASH AT END OF YEAR | 38,315,000 | 30,097,000 | 30,789,000 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest | 5,611,000 | 2,787,000 | 3,201,000 |
Cash paid for taxes | 41,000 | 46,000 | 21,000 |
Non-cash barter exchange of inventory for advertising/logistics credits | 3,352,000 | ||
Modification of warrants between equity and liability | 75,828,000 | ||
Non-cash consideration paid to contractors | 7,289,000 | 1,672,000 | |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Equity fundraising costs not paid | 160,000 | ||
Debt issuance costs not paid | 142,000 | ||
Original issue discount | 2,475,000 | 5,000,000 | |
Discount of debt relating to warrants issuance | 51,284,000 | 10,483,000 | |
Notes payable related to acquisitions | 16,550,000 | 18,073,000 | 195,000 |
Issuance of common stock in connection with acquisition | 29,075,000 | ||
Fair value of contingent consideration | 20,971,000 | 9,800,000 | |
Issuance of common stock in connection with Healing Solutions and Photo Paper Direct acquisitions | 50,529,000 | ||
Issuance of common stock - debt repayment | 125,562,000 | ||
Issuance of common stock - Healing Solutions earnout settlement | 7,914,000 | ||
Horizon Term Loan | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 1,065,000 | ||
FINANCING ACTIVITIES: | |||
Debt issuance costs | (900,000) | ||
Repayments of debt | (15,990,000) | ||
High Trail December 2020 Note and February 2021 Term Loan | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 28,240,000 | ||
High Trail April 2021 Term Loan | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 106,991,000 | ||
High Trails Term Loan | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 2,096,000 | ||
FINANCING ACTIVITIES: | |||
Debt issuance costs | (2,207,000) | ||
Borrowings from term loan | 38,000,000 | ||
High Trail December2020 Note And February2021 Note | |||
FINANCING ACTIVITIES: | |||
Repayments of debt | (59,500,000) | ||
High Trail April2021 Note | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 28,200,000 | ||
FINANCING ACTIVITIES: | |||
Debt issuance costs | (2,202,000) | ||
Repayments of debt | (10,139,000) | ||
Borrowings from term loan | 110,000,000 | ||
High Trail December2021 Note | |||
FINANCING ACTIVITIES: | |||
Repayments of debt | (27,500,000) | ||
High Trail February 2021 Note | |||
FINANCING ACTIVITIES: | |||
Debt issuance costs | (1,462,000) | ||
Borrowings from term loan | 14,025,000 | ||
Revolving Credit Facility | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 1,532,000 | ||
MidCap Credit Facility | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Loss on extinguishment | 1,500,000 | ||
FINANCING ACTIVITIES: | |||
Repayments of debt | (28,274,000) | (133,782,000) | (92,165,000) |
Debt issuance costs | (849,000) | (581,000) | |
Truweo Assets | |||
INVESTING ACTIVITIES: | |||
Purchase of fixed assets | $ (1,176,000) | ||
Smash Assets | |||
INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (25,000,000) | ||
Truweo Assets | |||
INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (13,965,000) | ||
Healing Solutions LLC | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Change in fair value of contingent earn-out liabilities | 0 | ||
INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (15,250,000) | ||
Photo Paper Direct Ltd. | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Change in fair value of contingent earn-out liabilities | 900,000 | ||
INVESTING ACTIVITIES: | |||
Purchase of Photo Paper Direct, net of cash acquired | (10,583,000) | ||
Aussie Health | |||
FINANCING ACTIVITIES: | |||
Repayment of note payable | $ (207,000) | ||
Squatty Potty, LLC | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Change in fair value of contingent earn-out liabilities | 500,000 | ||
INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (19,040,000) | ||
Smash | |||
FINANCING ACTIVITIES: | |||
Repayment of note payable | $ (10,495,000) |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. AND DESCRIPTION OF BUSINESS Aterian, Inc., formerly known as Mohawk Group Holdings, Inc., and its subsidiaries, (“Aterian” or the “Company”), is a technology-enabled consumer products platform that builds, acquires and partners with e-commerce brands. The Company’s proprietary software and agile supply chain helps create a growing base of consumer products. Aterian predominantly operates through online retail channels such as Amazon and Walmart, Inc. The Company owns and operates fourteen brands, which were either incubated or purchased, selling products in multiple categories, including home and kitchen appliances, kitchenware, heating, cooling and air quality appliances (dehumidifiers, humidifiers and air conditioners), health and beauty products and essentials oils. Headquartered in New York, Aterian’s offices can also be found in China, Philippines, Israel and Poland. Going Concern— As of December 31, 2021, the Company had total cash and cash equivalents of $30.3 million and an accumulated deficit of $429.0 million. In addition, the Company’s net loss and net cash used in operating activities amounted to $236.0 million and $42.0 million, respectively, for the year ended December 31, 2021. As an emerging growth company, the Company has been dependent on outside capital through the issuance of equity to investors and borrowings from lenders (collectively “outside capital”) since its inception to execute its growth strategy of investing in organic growth at the expense of short-term profitably and investing in incremental growth through mergers and acquisitions (“M&A strategy”). In addition, the Company’s recent financial performance has been adversely impacted by the COVID-19 global pandemic and related global shipping disruption, in particular with respect to substantial increases in supply chain costs for shipping containers (See COVID-19 Pandemic and Supply Chain disclosure below). As a result, the Company has incurred significant losses and will remain dependent on outside capital for the foreseeable future until such time that the Company can realize its strategy of growth by generating profits through its organic growth and M&A strategy, and reduce its reliance on outside capital. Given the inherent uncertainties associated with executing the Company’s growth strategy, as well as the uncertainty associated with the ongoing COVID-19 global pandemic and related global supply chain disruption, management can provide no assurance the Company will be able to obtain sufficient outside capital or generate sufficient cash from operations to fund the Company’s obligations as they become due over the next twelve months from the date these consolidated financial statements were issued. In addition, as disclosed in Note 9, the Company entered into a $50.0 million asset backed credit agreement in December 2021. The credit facility contains a financial covenant that requires the Company to maintain a minimum unrestricted cash balance of (a) $12.5 million during the period from February 1st through and including May 31st of each calendar year, and (b) $15.0 million at all other times thereafter. At its election, the Company may elect to comply with an alternative financial covenant that would require the Company to maintain a minimum borrowing availability under the credit facility of $10.0 million at all times. The Company does not anticipate electing the alternative financial covenant over the next twelve months and was in compliance with the minimum liquidity covenant as of the date these consolidated financial statements were issued. Since its inception, the Company has been able to successfully raise a substantial amount of outside capital to fund the Company’s growth strategy. However, as of December 31, 2021, the Company had no firm commitments of additional outside capital from current or prospective investors or lenders. While management believes the Company will be able to secure additional outside capital, no assurance can be provided that such capital will be obtained or on terms that are acceptable to the Company. Furthermore, given the inherent uncertainties associated with the Company’s growth strategy, the Company may be unable to remain in compliance with the financial covenants required by the credit facility agreement over the next twelve months. These uncertainties raise substantial doubt about the Company’s ability to continue as a going concern. In order to alleviate substantial doubt, management plans to continue to closely monitor its operating forecast, pursue additional sources of outside capital, and pursue its M&A strategy. If the Company is (a) unable to improve its operating results, (b) obtain additional outside capital on terms that are acceptable to the Company to fund the Company’s operations and M&A strategy, and/or (c) secure a waiver or forbearance from the lender if the Company is unable to remain in compliance with the financial covenants required by the credit facility agreement, the Company will have to make significant changes to its operating plan, such as delay expenditures, reduce investments in new products, delay the development of its software, reduce its sale and distribution infrastructure, or otherwise significantly reduce the scope of its business. Moreover, if the Company breaches the financial covenants required by the credit facility agreement and fails to secure a waiver or forbearance from the lender, such breach or failure could accelerate the repayment of the outstanding borrowings under the credit facility agreement or the exercise of other rights or remedies the lender may have under applicable law. Management can provide no assurance a waiver or forbearance will be granted or the outstanding borrowings under the credit facility will be successfully refinanced on terms that are acceptable to the Company. The accompanying consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern, which contemplates that the Company will be able to realize assets and settle liabilities and commitments in the normal course of business for the foreseeable future. Accordingly, the accompanying consolidated financial statements do not include any adjustments that may result from the outcome of these uncertainties. COVID-19 Pandemic and Supply Chain— The full impact of the COVID-19 pandemic and Supply Chain, including the impact associated with preventive and precautionary measures that the Company, other businesses and governments are taking, continues to evolve as of the date of this report. During 2021, the Company has been impacted by COVID-19 pandemic and related global shipping disruption. Together these have led to substantial increases in supply chain costs, in particular shipping containers, which the Company relies on to import its goods, has reduced the reliability and timely delivery of such shipping containers and has substantially increased the Company’s last mile shipping costs on its oversized goods. These cost increases have been particularly substantial to oversized goods, which is a material part of the Company’s business. The reduced reliability and delivery of such shipping containers is forcing the Company to spend more on premium shipping to ensure goods are delivered, if at all, and the lack of reliability and timely delivery has further down chain impacts as it takes longer for containers to be offloaded and returned. Further, this global shipping disruption is forcing the Company to increase its inventory on-hand including advance ordering and taking possession of inventory earlier than expected impacting its working capital. Third party last mile shipping partners, such as UPS and FedEx, continue to increase the cost of delivering goods to the end consumers as their delivery networks continue to be impacted by the COVID-19 pandemic. The COVID-19 pandemic continues to bring uncertainty to consumer demand as price increases related to raw materials, the importing of goods, including tariffs, and the cost of delivering goods to consumers has led to inflation across the U.S. Coupled with the recent reopening of the majority of the country, the Company has noticed changes to consumer buying habits, which may have reduced demand for its products. COVID-19 continues to bring uncertainty to consumer demand as price increases related to raw materials, the importing of goods, including tariffs, and the cost of delivering goods to consumers has led to inflation across the U.S. Coupled with continued changes in governmental restrictions and requirements, which continued to vary across the majority of the country, the Company has noticed changes to consumer buying habits, which may have reduced demand for its products. The Company continues to consider the impact of COVID-19 and Supply Chain on the assumptions and estimates used when preparing these consolidated financial statements including inventory valuation, and the impairment of long-lived assets. These assumptions and estimates may change as the current situation evolves or new events occur, and additional information is obtained. If the economic conditions caused by COVID-19 and Supply Chain worsen beyond what is currently estimated by management, such future changes may have an adverse impact on the Company’s results of operations, financial position, and liquidity. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Basis of Presentation —The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Restricted Cash — As of December 31, 2020, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary within “other non-current assets” on the consolidated balance sheets and $3.3 million related to a returned deposit for inventory that a manufacturer required the Company to pay into an escrow account within “prepaid and other current assets” on the consolidated balance sheets . As of December 31, 2021, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary within “other non-current assets” on the consolidated balance sheets, $2.0 million related to a letter of credit and $5.9 million for cash sweep accounts related to the Midcap Credit facility within “prepaid and other current assets” on the consolidated balance sheets. Accounts Receivable —Accounts receivable are stated at historical cost less allowance for doubtful accounts. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. The Company generally does not require any security or collateral to support its receivables. The Company performs on-going evaluations of its customers and maintains an allowance for bad and doubtful receivables. On December 31, 2020 and 2021, the Company had no allowance for doubtful accounts. Concentration of Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company maintains cash and restricted cash with various domestic and foreign financial institutions of high credit quality. The Company performs periodic evaluations of the relative credit standing of all of the aforementioned institutions. The Company’s accounts receivables are derived from sales contracts with a large number of customers. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. Significant customers are those which represent more than 10% of the Company’s total net revenue or gross accounts receivable balance at the balance sheet date. During the years-ended December 31, 2020 and 2021, the Company had no one customer that accounted for 10% or more of total net revenue. In addition, as of December 31, 2020 and 2021, the Company has no one customer that accounted for 10% or more of gross accounts receivable. As of December 31, 2020 and 2021, approximately 68% and 42%, respectively, of its accounts receivable is held by the Company’s sales platform vendor, Amazon, which collects money on the Company’s behalf from its customers. The Company’s business is reliant on one key vendor which currently provides the Company with its sales platform, logistics and fulfillment operations, including certain warehousing for the Company’s net goods, and invoicing and collection of its revenue from the Company’s end customers. In 2020, approximately 88% of the Company’s revenue was through or with the Amazon sales platform and in 2021, 93% of its net revenue was through or with the Amazon sales platform. Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets. Capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The estimated useful lives for significant property and equipment categories are as follows: Computer equipment and software 3 years Furniture, fixtures, and equipment 3-5 years Leasehold improvements and capital leases Shorter of remaining lease term or estimated useful life Income Taxes —The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss carry-forwards and temporary differences between financial statement bases of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in the income tax rates on deferred tax asset and liability balances is recognized in income in the period that includes the enactment date of such rate change. A valuation allowance is recorded for loss carry-forwards and other deferred tax assets when it is determined that it is more likely than not that such loss carry-forwards and deferred tax assets will not be realized. The Company recognizes the tax benefits on any uncertain tax positions taken or expected to be taken in the consolidated financial statements when it is more likely than not the position will be realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement. The Company recognizes estimated interest and penalties related to uncertain tax positions as a part of the provision for income taxes. Revenue Recognition —The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”) . The Company adopted ASC Topic 606 as of January 1, 2017 using the full retrospective method. The standard did not affect the Company’s consolidated net loss, financial position, or cash flows. There were no changes to the timing of revenue recognition as a result of the adoption. The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels and through wholesale channels. For direct-to-consumer sales, the Company considers customer order confirmations to be a contract with the customer. Customer confirmations are executed at the time an order is placed through third-party online channels. For wholesale sales, the Company considers the customer purchase order to be the contract. For all of the Company’s sales and distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment date. As a result, the Company has a present and unconditional right to payment and record the amount due from the customer in accounts receivable. Revenue from consumer product sales is recorded at the net sales price (transaction price), which includes an estimate of future returns based on historical return rates. There is judgment in utilizing historical trends for estimating future returns. The Company’s refund liability for sales returns was $0.5 million and $0.6 million at December 31, 2020 and 2021, respectively, which is included in accrued liabilities and represents the expected value of the refund that will be due to its customers. The Company evaluated principal versus agent considerations to determine whether it is appropriate to record platform fees paid to Amazon as an expense or as a reduction of revenue. Platform fees are recorded as sales and distribution expenses and are not recorded as a reduction of revenue because it owns and controls all the goods before they are transferred to the customer. The Company can, at any time, direct Amazon, similarly, other third-party logistics providers (“Logistics Providers”), to return the Company’s inventory to any location specified by the Company. It is the Company’s responsibility to make customers whole following any returns made by customers directly to Logistic Providers and the Company retains the back-end inventory risk. Further, the Company is subject to credit risk (i.e., credit card chargebacks), establishes prices of its products, can determine who fulfills the goods to the customer (Amazon or the Company) and can limit quantities or stop selling the goods at any time. Based on these considerations, the Company is the principal in this arrangement. Performance Obligations . A performance obligation is a promise in a contract to transfer a distinct good to the customer and is the unit of account in ASC Topic 606. A contract’s transaction price is recognized as revenue when the performance obligation is satisfied. Each of the Company’s contracts have a single distinct performance obligation, which is the promise to transfer individual goods. For consumer product sales, the Company has elected to treat shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for its single performance obligation related to product sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. The Company bills customers for charges for shipping and handling on certain sales and such charges are recorded as part of net revenue. Shipping and handling revenue for each of the years-ended December 31, 2020 and 2021 were de minimis. For each contract, the Company considers the promise to transfer products to be the only identified performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. All of the Company’s direct and wholesale revenue for the years-ended December 31, 2020 and 2021 are recognized at a point in time. Sales taxes —Consistent with prior periods, sales taxes collected from customers are presented on a net basis and as such are excluded from net revenue. Net Revenue by Category : The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Year-Ended December 31, 2019 (in thousands) Direct Wholesale Managed Platform as a Service (“PaaS”) Total North America $ 111,168 $ 1,408 $ 1,685 $ 114,261 Other 190 — — 190 Total net revenue $ 111,358 $ 1,408 $ 1,685 $ 114,451 Year-Ended December 31, 2020 (in thousands) Direct Wholesale Managed PaaS Total North America $ 164,162 $ 20,150 $ 1,336 $ 185,648 Other 56 — — 56 Total net revenue $ 164,218 $ 20,150 $ 1,336 $ 185,704 Year-Ended December 31, 2021 (in thousands) Direct Wholesale Managed PaaS Total North America $ 232,067 $ 11,528 $ 422 $ 244,017 Other 3,750 — — $ 3,750 Total net revenue $ 235,817 $ 11,528 $ 422 $ 247,767 Net Revenue by Product Categories : The following table sets forth the Company’s net revenue disaggregated by product categories: Year-Ended December 31, 2019 2020 2021 (in thousands) Heating, cooling and air quality $ 58,025 $ 78,424 $ 73,685 Kitchen appliances 26,917 29,711 43,180 Health and beauty 14,948 26,070 15,579 Personal protective equipment — 15,488 6,073 Cookware, kitchen tools and gadgets 6,898 14,868 22,933 Home office 172 7,669 12,352 Housewares 3,206 3,277 33,951 Essential oils and related accessories — — 27,444 Other 2,600 8,861 12,148 Total net product revenue 112,766 184,368 247,345 Managed PaaS 1,685 1,336 422 Total net revenue $ 114,451 $ 185,704 $ 247,767 Fair Value of Financial Instruments — The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At December 31, 2021, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The Company’s credit facility is carried at amortized cost at December 31, 2020 and December 31, 2021 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The fair value of the outstanding warrants were measured using the Monte Carlo Simulation model. Due to the complexity of the warrants issued, the Company uses an outside expert to assist in providing the mark to market fair valuation of the liabilities over the reporting periods in which the original agreement was in effect. Inputs used to determine estimated fair value of the warrant liabilities include the fair value of the underlying stock at the valuation date, the term of the warrants, and the expected volatility of the underlying stock. The significant unobservable input used in the fair value measurement of the warrant liabilities is the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term result in a directionally similar impact to the periodic fair value measurement of the outstanding warrant liability, and are recorded within the Change in fair market value of warrant line item on the statement of operations. The fair value of the contingent consideration related to business combinations is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. The company remeasures the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within the change in fair value of contingent earn-out liabilities line item on the statement of operations. Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are supported by little or no market data for the related assets or liabilities. Goodwill — The Company operates under one business component which is the same as its reporting unit based on the guidance in ASC Topic 350-20. The Company engaged a third-party valuation specialist to assist management in performing its annual goodwill impairment test in December 2021. For goodwill, impairment testing is based upon the best information available using a combination of the discounted cash flow method (a form of the income approach), the guideline public company method, and guideline transaction method (both market approaches). Under the income approach, or discounted cash flow method, the significant assumptions used are projected net revenue, projected contribution margin (product operating margin before fixed costs), fixed costs, terminal growth rates and the cost of capital. Projected net revenue, projected contribution margin and terminal growth rates were determined to be significant assumptions because they are the three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital is another significant assumption as the discount rate is used to calculate the current fair value of those projected cash flows. Under the guideline public company method and guideline transaction method, significant assumptions relate to the selection of appropriate guideline companies and transactions and the valuation multiples used in the market analysis. The Company believes that the assumptions and estimates made are reasonable and appropriate, and changes in the assumptions and estimates could have a material impact on its reported financial results. In addition, sustained declines in the Company’s stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting unit and could result in non-cash impairment charges that could be material to the Company's consolidated balance sheet or results of operations. The company began to experience improvement in its operating margins and additional improvement in its products performance before the inclusion of fixed costs. These improvements, coupled with the Company’s acquisitions, supported the Company’s conclusion that it would generate significant improvements in its operating results. Since December 31, 202 0 , the Company has had an additional increase in the amount of goodwill through acquisitions made in 2021. Although the Company has experienced volatility in its share price and short-term forecasts, impacting its going concern analysis due to lender covenant risks, the Company believes it has had no triggering events as its overall long-term forecasts remain materially the same as of December 31, 2021. However, if the Company continues to experience downward share price volatility or there are material reductions in long-term forecasts the excess fair-value over its carrying value could be reduced significantly and could lead to a triggering event and ultimately to a goodwill impairment charge . The Company performed a full step one impairment test at December 31, 2021 and concluded no impairment and that its estimated fair-values exceeded its carrying values by 21 % as of the year-ended December 31, 2021 . The Company will continue to closely monitor actual results versus expectations as well as whether and to what extent any significant changes in current events or conditions, including changes to the impacts of COVID-19 on its business, result in corresponding changes to its expectations about future estimated cash flows, discount rates and market multiples. If the Company’s adjusted expectations of the operating results do not materialize, if the discount rate increases (based on increases in interest rates, market rates of return or market volatility) or if market multiples decline, we may be required to record goodwill impairment charges, which may be material. While the Company believes our conclusions regarding the estimates of fair value of its reporting unit is appropriate, these estimates are subject to uncertainty and by nature include judgments and estimates regarding various factors. These factors include the rate and extent of growth in the markets that our reporting units serve, the realization of future sales price and volume increases, fluctuations in exchange rates, fluctuations in price and availability of key raw materials, future operating efficiencies and, as it pertains to discount rates, the volatility in interest rates and costs of equity. Intangible assets — Intangible assets with finite lives are amortized over their estimated useful life on a straight-line basis. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization. The Company tests these assets for potential impairment whenever its management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset’s useful life and the impact of an event or circumstance on either an asset’s useful life or carrying value involve significant judgment regarding estimates of the future cash flows associated with each asset. Business Combinations —In accordance with FASB ASC Topic 805 “Business Combinations", acquired assets and liabilities assumed as part of a business acquisition are generally recorded at their fair value at the date of acquisition. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires management to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. Accounting and Contingent Consideration — The Company’s acquisitions include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management’s assumptions about the likelihood of payment based on the established benchmarks and discount rates based on internal rate of return analysis. The fair value measurement includes inputs that are Level 3 measurements. If actual results increase or decrease as compared to the assumption used in the Company’s analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration could cause a material impact and volatility in the Company’s operating results. Inventory and Cost of Goods Sold —The Company’s inventory consists almost entirely of finished goods. The Company currently records inventory on its balance sheet on a first-in first-out basis, or net realizable value, if it is below the Company’s recorded cost. The Company’s costs include the amounts it pays manufacturers for product, tariffs and duties associated with transporting product across national borders, and freight costs associated with transporting the product from its manufacturers to its warehouses, as applicable. The “Cost of goods sold” line item in the consolidated statements of operations consists of the book value of inventory sold to customers during the reporting period and amortization of inventory step-up from acquisitions Sales and Distribution— Sales and distribution expenses consist of online advertising costs, marketing and promotional costs, sales and e-commerce platform commissions, fulfillment, including shipping and handling, and warehouse costs (i.e. sales and distribution variable expenses). Further, sales and distribution expenses also include employee compensation and benefits and other related fixed costs. Costs associated with the Company’s advertising and sales promotion are expensed as incurred and are included in sales and distribution expenses. For the years - ended December 31, 2019 , 20 20 and 20 2 1 , the Company recognized $ 4.8 million, $ 6.3 million and $ 9.0 million , respectively, for advertising costs, which consists primarily of online advertising expense. Shipping and handling expense is included in the Company’s consolidated statements of operations within sales and distribution expenses. This includes pick and pack costs and outbound transportation costs to ship goods to customers performed by e-commerce platforms or incurred directly by the Company’s own fulfillment operations. The Company’s expense for shipping and handling was $ 17.2 million, $ million and $ 43.4 million during fiscal years 2019, 20 20 and 20 2 1 , respectively. Research and Development — Research and development expenses include compensation and employee benefits for technology development employees, travel related costs, and fees paid to outside consultants related to development of the Company’s owned intellectual property and technology. General and Administrative —General and administrative expenses include compensation and employee benefits for executive management, finance administration, legal, and human resources, facility costs, travel, professional service fees and other general overhead costs. Stock-Based Compensation— Stock-based compensation expense to employees is measured based on the grant-date fair value of the awards and recognized in the consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (the vesting period of the award). The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. The Black-Scholes option-pricing model requires the input of highly subjective assumptions, including the fair value of the Company’s underlying common stock, the expected term of stock options, the expected volatility of the price of its common stock, risk-free interest rates and the expected dividend yield of its common stock. The assumptions used in the Company’s option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. These assumptions are estimated as follows: • Risk-Free Interest Rate . The Company based the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on U.S. Treasury zero-coupon bonds with an equivalent remaining term of the stock options for each stock option group. • Expected Term . The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options vesting term and contractual expiration period, as it does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. • Expected Volatility . The Company determines the price volatility factor based on the historical volatility of publicly-traded industry peers. To determine its peer group of companies, the Company considers public companies in the technology industry and selects those that are similar to the Company in size, stage of life cycle and financial leverage. The Company does not rely on implied volatilities of traded options in its industry peers’ common stock because the volume of activity is relatively low. • Expected Dividend Yield . The Company has not paid and does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero. If any of the assumptions used in the Black-Scholes option-pricing model changes significantly, stock-based compensation for future awards may differ materially compared with the awards granted previously. The Company recognizes forfeitures as they occur, which results in a reduction in compensation expense at the time of forfeiture. Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the local currency. All assets and liabilities of foreign subsidiaries are translated at the current exchange rate as of the end of the period, and revenues and expenses are translated at the average exchange rates in effect during the period. The gain or loss resulting from the process of translating foreign currency financial statements into U.S. dollars is reflected as a foreign currency cumulative translation adjustment and reported as a component of accumulated other comprehensive income loss. Foreign currency transaction gains and losses resulting from or expected to result from transactions denominated in a currency other than the functional currency are recognized in other expense, net in the consolidated statements of operations. The Company recorded net loss from foreign currency transactions of less than $0.1 million for each of the years-ended December 31, 2019, 2020 and 2021. Net Loss Per Share —The Company computes basic earnings per share using the weighted-average number of shares of common stock outstanding during the period. For periods in which the Company reports net losses, diluted net loss per share attributable to stockholders is the same as basic net loss per share attributable to stockholders, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Segment Information —The Company reports segment information in accordance with ASC Topic No. 280 “Segment Reporting.” The Company has one reportable segment. Recent Accounting Pronouncements The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) On January 1, 2022, the Company recorded an aggregate of approximately $0.7 million of right-of-use assets and corresponding $0.7 million of lease liabilities upon adoption of this standard. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract” The new guidance was adopted on January 1, 2022 with no material impact on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Topic 814): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” The new guidance was adopted on January 1, 2022 with no material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). In December 2019, the FASB issued ASU 2019-12, Inco |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventory | 3. Inventory consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Inventory on-hand $ 22,753 $ 48,079 Inventory in-transit 8,829 14,966 Inventory $ 31,582 $ 63,045 The Company’s Inventory on-hand is held either with Amazon, Walmart or the Company’s other third-party warehouses. The Company does not have any contractual right of returns with its contract manufacturers. The Company’s Inventory on-hand held by Amazon was approximately $5.3 million and $8.4 million |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable Net Current [Abstract] | |
Accounts Receivable | 4. Accounts receivable consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Trade accounts receivable $ 5,747 $ 10,478 Allowance for doubtful accounts — — Accounts receivable—net $ 5,747 $ 10,478 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and equipment consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Computer equipment and software $ 613 $ 943 Furniture, fixtures and equipment 91 91 Leasehold improvements 56 56 Building — 723 Subtotal 760 1,813 Less: accumulated depreciation and amortization (591 ) (559 ) Property and equipment—net $ 169 $ 1,254 Depreciation expense for property and equipment totaled $0.2 million, $0.3 million and $0.2 million during the years-ended December 31, 2019, 2020 and 2021, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. The Company’s financial instruments consist of Level 1 assets at December 31, 2020 and 2021. The Company’s cash and restricted cash was $30.1 million and $38.3 million at December 31, , respectively, The Company’s credit facility and term loans are carried at amortized cost at December 31, 2020 and December 31, 2021 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 3 inputs. The Company categorizes its warrants potentially settleable in cash as Level 3 fair value measurements. The warrants potentially settleable in cash are measured at fair value on a recurring basis and are being marked to fair value at each reporting date until they are completely settled or meet the requirements to be accounted for as a component of stockholders’ equity. The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table summarizes the fair value of the Company’s financial assets that are measured at fair value for the years-ended December 31, 2020 and 2021 (in thousands): December 31, 2020 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 26,718 $ — $ — Restricted Cash 3,379 — — Liabilities: Estimated fair value of contingent earn-out considerations — — 22,531 Fair market value of warrant liability — — 31,821 December 31, 2021 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 30,317 $ — $ — Restricted cash 7,998 — — Liabilities: Estimated fair value of contingent earn-out considerations — — 9,223 Fair market value of warrant liability — — — A summary of the activity of the Level 3 liabilities carried at fair value on a recurring basis for the years-ended December 31, 2020 and 2021 are as follows (in thousands): Balance at December 31, 2020 $ 31,821 Modification of warrant liability to equity classification (58,276 ) Change in fair value of warrant liability 26,455 Balance at December 31, 2021 $ — Balance at December 31, 2020 $ 22,531 Fair value at issuance of contingent earn-out liability 20,971 Change in fair value of contingent earn-out liability (30,529 ) Payment of contingent earn-out liability (3,750 ) Balance at December 31, 2021 $ 9,223 The fair value of the outstanding warrants were measured using the Monte Carlo Simulation model. Due to the complexity of the warrants issued, the Company uses an outside expert to assist in providing the mark to market fair valuation of the liabilities over the reporting periods in which the original agreement was in effect. Inputs used to determine estimated fair value of the warrant liabilities include the fair value of the underlying stock at the valuation date, the term of the warrants, and the expected volatility of the underlying stock. The significant unobservable input used in the fair value measurement of the warrant liabilities is the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term result in a directionally similar impact to the periodic fair value measurement of the outstanding warrant liability, and are recorded within the Change in fair market value of warrant line item on the statement of operations. The fair value of the contingent consideration related to business combinations is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. The Company remeasures the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within the change in fair value of contingent earn-out liabilities line item on the statement of operations. |
Prepaid and Other Current Asset
Prepaid and Other Current Assets | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Prepaid And Other Current Assets | 7. Prepaid and other current assets consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Prepaid inventory $ 4,361 $ 4,137 Restricted cash 3,250 7,998 Prepaid insurance 1,504 2,440 Consulting fees 738 2,263 Amazon global logistics — 2,865 Other 1,258 1,331 Prepaid and other current assets $ 11,111 $ 21,034 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Accrued and Other Current Liabilities | 8. Accrued expenses and other current liabilities consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Accrued compensation costs $ 293 $ 162 Accrued professional fees and consultants 483 331 Accrued logistics costs 1,068 578 Product related accruals 3,221 2,984 Sales tax payable 457 678 Sales return reserve 547 590 Accrued fulfillment expense 381 744 Accrued insurance 952 967 Federal payroll taxes payable 330 4,449 Accrued interest payable 137 338 All other accruals 471 5,800 Accrued and other current liabilities $ 8,340 $ 17,621 The Company sponsors, through its professional employer organization provider, a 401(k) defined contribution plan covering all eligible U.S. employees. Contributions to the 401(k) plan are discretionary. Currently, the Company does not match or make any contributions to the 401(k) plan. |
Credit Facility and Term Loans
Credit Facility and Term Loans | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Credit Facility and Term Loans | 9. MidCap Credit Facility and Term Loan – November 2018 Note On November 23, 2018, the Company entered into the three-year MidCap Funding IV Trust as agent and lenders party thereto a rate of the London Interbank Offered Rate (“LIBOR”) On December 1, 2020, the Company, certain of the Company’s subsidiaries and MidCap entered into an amendment to the Credit Facility, (i) providing for a (ii) permitting the incurrence of certain debt under certain conditions and restrictions, including the senior secured note with an aggregate principal amount of $43.0 million issued on December 1, 2020 (as amended, the “December 2020 Note”), (iii) permitting certain payments to High Trail SA as required under the December 2020 Note, and (iv) permitting the acquisition of the assets of an e-commerce business under the brands Mueller, Pursteam, Pohl and Schmitt, and Spiralizer (the “Smash Assets”). Further, the Credit Facility was extended to November 23, 2022 On April 8, 2021, the Company paid off all obligations owing under, and terminated, the Credit Facility. The Company recorded $1.5 million of extinguishment of debt for the year-ended December 31, 2021, which has been classified within loss on extinguishment of debt on the condensed consolidated statements of operations . Pursuant to the Credit Facility, upon the payment of the amounts outstanding under the Credit Facility, the Company paid a prepayment fee and a payoff letter preparation fee in an aggregate amount equal to 4.3% of the then outstanding principal balance of the Credit Facility. The Company recorded interest expense from the Credit Facility of approximately $1.9 million and $ million for the years-ended December 31, 2020 and 2021, respectively, which included $0.7 million and $ million, respectively, relating to debt issuance costs. Horizon Term Loan – December 2018 Note On December 31, 2018, the Company entered into a term loan agreement (the “Horizon Loan Agreement”) with Horizon Technology Finance Corporation (“Horizon”). As part of the Horizon Loan Agreement, the Company obtained a four-year exceeded 2.50% for outstanding borrowings, and payments on principal were made on a monthly basis. On December 1, 2020, the Company paid off all remaining obligations under the Horizon Term Loan for $15.0 million and terminated the Horizon Term Loan. The Company recorded interest expense from the Horizon Term Loan of $1.4 million and $0.0 million for the years-ended December 31, 2020 and 2021, respectively, which included $0.6 million and $ million, respectively, relating to debt issuance costs High Trail Loan - December 2020 Note On December 1, 2020, the Company refinanced the Horizon Term Loan through the issuance of the December 2020 Note to High Trail SA. The Company received gross proceeds of $38.0 million in exchange for the December 2020 Note with an aggregate principal amount of $43.0 million. The December 2020 Note was to be repaid over 24 equal monthly cash payments of $1.8 million. The December 2020 Note consisted of the following as of December 31, 2020: December 31, 2020 (in thousands) December 2020 Note $ 43,000 Less: deferred debt issuance costs (2,207 ) Less: discount associated with issuance of warrants (9,839 ) Less: discount associated with original issuance of loan (4,692 ) High Trail warrant 31,821 Total December 2020 Note 58,083 Less-current portion (21,600 ) Term loan-non current portion $ 36,483 The December 2020 Note contained a minimum liquidity financial covenant that required the Company to maintain a minimum of $10.0 million in unrestricted cash on hand. The December 2020 Note was extinguished on April 8, 2021 in exchange for an April 2021 Note (see the discussion under the heading High Trail April 2021 Note of this Note 9 below). High Trail - February 2021 Note On February 2, 2021, the Company entered into a second, separate transaction with High Trail, where it issued to High Trail ON a 0% coupon senior secured promissory note in an aggregate principal amount of $16.5 million (as amended, the “February 2021 Note”) that was to mature on February 1, 2023. High Trail - April 2021 Note On April 8, 2021, the Company refinanced all its existing debt with High Trail and Midcap. As such, the Company entered into a new securities purchase and exchange agreement (the “Securities Purchase Agreement”) with High Trail SA and High Trail ON, pursuant to which, among other things, the Company issued and sold to High Trail, in a private placement transaction (the “Private Placement”), (i) senior secured promissory notes in an aggregate principal amount of $110.0 million (the “April 2021 Notes”) that accrued interest at a rate of 8% per annum and were to mature on April 8, 2024, and (ii) warrants (the “Warrants” and each, a “Warrant”) to purchase up to an aggregate of 2,259,166 shares of the Company’s common stock in exchange for: (a) a cash payment by High Trail to the Company of $57.7 million, (b) the cancellation of the December 2020 Note, and (c) the cancellation of the February 2021 Note. The Company used $14.8 million of the net proceeds from the Private Placement to repay all amounts owed under the Credit Facility on April 8, 2021. Pursuant to ASC 470, Debt, the Company concluded the High Trail April 2021 Note transaction resulted in the extinguishment of the two prior High Trail December 2020 and February 2021 term loans in the amount of $28.2 million of extinguishment of which has been classified within loss on extinguishment of debt on the condensed consolidated statements of operations. The Company breached its Adjusted EBITDA covenant with its lender, High Trail, and in August 2021, the Company secured a waiver from its lender with the partial repayment of the loan. See the High Trail Letter Agreements and Omnibus Amendment section The April Letter Agreement On April 8, 2021, the Company entered into a Letter Agreement (the “April Letter Agreement”) with High Trail SA and High Trail ON, pursuant to which, among other things, (i) the Company and High Trail SA agreed to amend the terms of the Letter Agreement to provide that the Company would prepare and file by June 30, 2021 a registration statement (the “Resale Registration Statement”) with the Securities and Exchange Commission for the purposes of registering for resale the December Warrant Shares, the Penny Warrant Shares and the Restricted Shares (as defined below), (ii) the Company issued 130,000 shares of its common stock to High Trail SA (the “Restricted Shares”), and (iii) High Trail SA and High Trail ON agreed to waive any Default or Event of Default (as such terms are defined in the December 2020 Note or the February 2021 Note) caused by the Company’s failure to file the Resale Registration Statement by March 26, 2021. On April 8, 2021, the Company entered into (i) an amendment (the “SPA Amendment”) to that certain Securities Purchase Agreement, dated as of November 30, 2020, by and between the Company and High Trail SA (the “December 2020 SPA”), and to that certain Securities Purchase Agreement, dated as of February 2, 2021, by and between the Company and High Trail ON (the “February 2021 SPA”), (ii) an amendment to the February Warrant (the “February Warrant Amendment”), (iii) an amendment to the Penny Warrant (the “Penny Warrant Amendment”), and (iv) an amendment to the Additional Warrant (the “Additional Warrant Amendment” and, together with the February Warrant Amendment and the Penny Warrant Amendment, the “Warrant Amendments”). The SPA Amendment amended the December 2020 SPA and the February 2021 SPA to, among other things, allow for the issuance of the April 2021 Notes and to waive certain rights of High Trail under the December 2020 SPA and the February 2021 SPA. The Warrant Amendments amended the February Warrant, the Penny Warrant and the Additional Warrant to amend the definition of “Black Scholes Value” in each warrant to provide that the expected volatility used in the Black Scholes Value shall equal 100% instead of the greater of 100% and the 100-day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365-day annualization factor) as of the trading day immediately following the public announcement of a Change of Control (as defined in each of the warrants), or, if the Change of Control is not publicly announced, the date the Change of Control is consummated. The Warrant Amendments to the February Warrant, the Penny Warrant and the Additional Warrant resulted in an $80.0 million reclassification from a liability to a component of equity and resulted in a $21.3 million reclassification from a component of equity to a liability as of December 31, 2021. The Restricted Shares were expensed as part of extinguishment loss, valued based on the fair market value on April 8, 2021 for $4.1 million, with the offset impacting stockholders’ equity. High Trail Letter Agreements and Omnibus Amendment On August 9, 2021, pursuant to those certain Letter Agreements entered into between the Company and High Trail with respect to each of the April 2021 Notes (collectively, the “August Letter Agreements”), High Trail notified the Company that High Trail declared an event of default under the April 2021 Notes as a result of the Company’s Adjusted EBITDA (as defined in the April 2021 Notes) not being equal to at least $12 million for the 12 month period ended June 30, 2021 and further notified the Company that High Trail immediately accelerated a total of $18.7 million of the principal amount of the April 2021 Notes, requiring the Company to immediately pay $21.5 million (such amount equal to 115% of the principal amount that was accelerated, as required under the terms of the April 2021 Notes, plus $0.3 million of accrued but unpaid interest on the principal amount that was accelerated) (the “Current Event of Default Acceleration Amount”). Pursuant to the August Letter Agreements, the Company agreed, among other things, to pay the Current Event of Default Acceleration Amount in cash by August 9, 2021 and that any portion not paid in cash would be paid in shares of the Company’s common stock under the terms of the April 2021 Notes, with the number of shares issuable equal to the unpaid Current Event of Default Acceleration Amount divided by 80% of the lesser of (i) the Daily VWAP (as defined in the April 2021 Notes) on August 9, 2021 and (ii) the average of the lowest two (2) Daily VWAPs during the ten (10) day VWAP trading period ending on August 9, 2021. Pursuant to the August Letter Agreements, High Trail waived the events of default relating to the Company’s failure to satisfy the Adjusted EBITDA covenant under the April 2021 Notes, effective upon the payment in cash of $10.1 million of the Current Event of Default Acceleration Amount and the issuance of the shares of the Company’s common stock for the remaining $11.7 million of the Current Event of Default Acceleration Amount. The Company paid High Trail an aggregate of $10.1 million in cash on August 9, 2021 and in accordance with the April 2021 Notes and the August Letter Agreements, paid the remaining $11.7 million of the Current Event of Default Acceleration Amount by issuing to High Trail an aggregate of 2,841,251 at a price of $4.1007 per share, which was, in accordance with the April 2021 Notes, equal to 80% of the Daily VWAP on August 9, 2021 In connection with the August Letter Agreements, on August 9, 2021, the Company also entered into an Omnibus Amendment to Senior Secured Notes Due 2024 and Warrants to Purchase Common Stock with High Trail (the “Omnibus Amendment”), whereby: (i) the Company agreed to increase the minimum cash threshold covenant in the April 2021 Notes from $15.0 million to $30.0 million through October 31, 2021; (ii) the Company agreed to add a liquidity covenant to the April 2021 Notes whereby it must have liquidity, on each day through October 31, 2021, calculated as (A) inventory, net, plus (B) accounts receivable, net (each determined in accordance with GAAP) in an aggregate minimum amount equal to $65.0 million less (C) any amount of cash and cash equivalents in excess of $30 million; (iii) the definition of “Permitted Investment” in the April 2021 Notes was modified such that the consent of High Trail is now required for certain merger and acquisition activity; (iv) the Company agreed that the exercise prices of the following warrants to purchase shares of the Company’s common stock previously issued to High Trail will be modified to be equal to the lesser of: (X) the closing price of the Company’s common stock on August 9, 2021 or (Y) the VWAP of the Company’s common stock on August 9, 2021: (1) the February Warrant; (2) the Additional Warrant; and (3) the Warrants (collectively, the “High Trail Warrants”); (v) High Trail agreed that it would not exercise the High Trail Warrants prior to October 17, 2021 (the day that was 60 days after the registration statement registering for resale the 2,666,667 shares of common stock the Company issued on June 15, 2021 was declared effective); and (vi) if, at any time on or after January 7, 2022, High Trail is unable to exercise the High Trail Warrants due to the agreement described in clause (v), the Company agreed to pay High Trail, as liquidated damages, a cash payment that will be equal to (a) the weighted average price of the Company’s common stock on the date High Trail seeks to exercise any of the High Trail Warrants, minus the then-current exercise price of the High Trail Warrants, multiplied by (b) the number of shares subject to the High Trail Warrants that it then desires to exercise. High Trail Debt Repayment On September 22, 2021, the Company entered into letter agreements (the “September Letter Agreements”) with High Trail with respect to the April 2021 Notes. Pursuant to the September Letter Agreements, (i) High Trail notified the Company that High Trail declared events of default under the April 2021 Notes and further notified the Company that High Trail accelerated an aggregate of $66.3 million of the principal amount of the April 2021 Notes, requiring the Company to pay $76.9 million (such amount equal to 115% of the principal amount that was accelerated, as required under the terms of the April 2021Notes, plus $0.3 million of accrued but unpaid interest on the principal amount that was accelerated) (collectively, the “Acceleration Amount”), (ii) High Trail agreed, contingent and effective upon the repayment of the Acceleration Amount in shares of the Company’s common stock in accordance with the April 2021 Notes and the September Letter Agreements and the satisfaction of all of the Company’s other obligations under the September Letter Agreements and the Second Omnibus Amendment (as defined below), to waive the events of default, (iii) the Company agreed that until November 1, 2021, the Company will not, subject to certain exceptions, issue, offer, sell or otherwise dispose of any equity security, equity-linked security or related security, and (iv) the Company agreed that, as a result of the occurrence of the events of default, it no longer has the right to require High Trail to exercise the High Trail Warrants High Trail Under the terms of the April 2021 Notes, High Trail had the right, by delivering a notice to the Company (each, a “Stock Payment Notice”) to require the Company to satisfy its obligation to repay all or any portion of the Acceleration Amount in shares of the Company’s common stock, with the number of shares issuable determined by dividing the portion of the Acceleration Amount that High Trail requests, pursuant to a Stock Payment Notice, to be repaid in shares of the Company’s common stock, by 80% of the lesser of (A) the Daily VWAP (as defined in the April 2021 Notes) on the date of delivery of the Stock Payment Notice, and (B) the average of the lowest two Daily VWAPs during the ten (10) day VWAP trading period ending on the date of delivery of the Stock Payment Notice. Pursuant to the September Letter Agreements, High Trail agreed to deliver Stock Payment Notices as soon as it is practicable to do so without High Trail and its affiliates collectively beneficially owning in the aggregate in excess of 9.99% of the Company’s outstanding common stock. In connection with the September Letter Agreements, on September 22, 2021, the Company also entered into a Second Omnibus Amendment to Senior Secured Notes Due 2024 and Warrants to Purchase Common Stock with High Trail (the “Second Omnibus Amendment”), whereby: (i) the maturity date of the April 2021 Notes was changed from April 8, 2024 to April 1, 2023; (ii) the definition of “Permitted Investment” in the April 2021 Notes was modified to include an exception for certain acquisitions of all or substantially all of the assets of another person or a majority of the equity interests of another person; (iii) the definition of “Target Adjusted EBITDA” was modified to reflect certain updated projections of the Company; (iv) the liquidity requirements as set forth in the Omnibus Amendment were removed; (v) the minimum cash threshold covenant was changed from $30.0 million to $15.0 million; (vi) the definition of “Adjusted EBITDA” in the April 2021 Notes was modified to be equal to not less than the Target Adjusted EBITDA for the three-month period ending on the last day of each applicable fiscal quarter instead of the 12-month period ending on such day; and (vii) the exercise prices of the High Trail In accordance with the April 2021 Notes and the September Letter Agreements, effective September 22, 2021, the Company issued to High Trail an aggregate of 3,474,814 Acceleration Amount in full. Pursuant to ASC 470, Debt, the Company concluded that as a result of the High Trail Letter Agreements and Omnibus Amendment and the High Trail Debt Repayment, the April 2021 Notes were extinguished on September 22, 2021 in exchange for the Notes due April 2023 of $25.0 million. The Company paid off the remaining $25.0 million High Trail Term Loan as of December 31, 2021 (see the discussion under the heading MidCap Credit Facility December 2021 of this Note 9 below). Pursuant to ASC 470, Debt, the Company concluded the High Trail Term Loan transaction resulted in the extinguishment of the High Trail T erm L oan in the amount of $ 2.5 million of extinguishment of which has been classified within loss on extinguishment of debt on the consolidated statements of operations . For the year-ended December 31, 2021, the Company has recorded a total of $138.9 million of debt extinguishment loss which includes the $107.0 million from the High Trail Letter Agreements and Omnibus Amendment and the High Trail Debt Repayment, $28.2 million from the High Trail December 2020 and February 2021 term loans as part of the issuance of the April 2021 Notes, of $2.5 million of extinguishment from the remaining $25.0 million of High Trail Term Loan and $1.5 million from the repayment of the Credit Facility. MidCap Credit Facility – December 2021 On December 22, 2021, the Company entered into a Credit and Security Agreement (the “Credit Agreement”) together with certain of its subsidiaries party thereto as borrowers, the entities party thereto as lenders, and Midcap Funding IV Trust, as administrative agent, pursuant to which, among other things, (i) the Lenders agreed to provide a three year revolving credit facility in a principal amount of up to $40.0 million subject to a borrowing base consisting of, among other things, inventory and sales receivables (subject to certain reserves), and (ii) the Company agreed to issue to MidCap Funding XXVII Trust a warrant (the “Midcap Warrant”) to purchase up to an aggregate of 200,000 shares of common stock of the Company, par value $0.0001 per share, in exchange for the Lenders extending loans and other extensions of credit to the Company under the Credit Agreement. On December 22, 2021, the Company used $27.6 million of the net proceeds from the initial loan under the Credit Agreement to repay all remaining amounts owed under those certain senior secured promissory notes issued by the Company to High Trail Investments SA LLC and High Trail Investments ON LLC in an initial principal amount of $110.0 million, as amended (the “Terminated Notes”). The obligations under the Credit Agreement are a senior secured obligation of the Company and rank senior to all indebtedness of the Company. Borrowings under the Credit Agreement bear interest at a rate per annum equal to 5.50%, plus, at the Company’s option, either a base rate or a LIBOR rate. The Company will also be required to pay a commitment fee of 0.50% in respect of the undrawn portion of the commitments, which is generally based on average daily usage of the facility during the immediately preceding fiscal quarter. The Credit Agreement does not require any amortization payments. The Credit Agreement imposes certain customary affirmative and negative covenants upon the Company including restrictions related to dividends and other foreign subsidiaries limitations. The Credit Agreement minimum liquidity covenant requires that Midcap shall not permit the credit party liquidity at any time to be less than (a) during the period commencing on February 1 st st The Company was in compliance with the financial covenants contained within the Credit Agreement as of December 31, 2021. The Midcap Warrant has an exercise price of $4.70 per share, subject to adjustment for stock splits, reverse stock splits, stock dividends and similar transactions, is immediately exercisable, has a term of ten years from the date of issuance and is exercisable on a cash or cashless basis. The Company’s credit facility consisted of the following as of December 31, 2021: December 31, 2021 (in thousands) MidCap Credit Facility – December 2021 34,119 Less: deferred debt issuance costs (691 ) Less: discount associated with issuance of warrants (583 ) Total MidCap Credit Facility – December 2021 $ 32,845 Interest Expense, Net Interest expense, net consisted of the following for the years-ended December 31, 2020 and 2021 (in thousands): Years Ended December 31, 2019 2020 2021 Interest expense $ 4,532 $ 5,038 $ 13,250 Interest income (146 ) (59 ) (595 ) Total interest expense, net $ 4,386 $ 4,979 $ 12,655 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity Abstract | |
Stockholders' Equity | 10. Common Shares —The Company has one class of common shares issued and available. Each share of common stock has the right to one vote per share. On June 14, 2019, the Company completed its IPO, selling 3,600,000 shares of common stock at a public offering price of $10.00 per share. Net proceeds to the Company from the offering were approximately $29.4 million, after deducting legal, underwriting and other offering expenses. On August 26, 2020 the Company completed the Follow-On Offering of 3,860,710 shares of common stock, which at a public offering price of $7.00 per share, less underwriting discounts and commissions. The Company received net proceeds of approximately $23.4 million after deducting underwriting discounts and commissions of approximately $2.2 million and other offering expenses payable by the Company of approximately $1.4 million. On June 10, 2021, the Company entered into a Securities Purchase Agreement with certain accredited investors (collectively, the “Investors”) pursuant to which, among other things, the Company issued and sold to the Investors, in a private placement transaction, an aggregate of 2,666,667 shares of common stock, of the Company (the “Shares”), at an offering price of $15.00 per Share, with proceeds to the Company, net of offering costs, of $36.7 million. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. The Company has three equity plans: 2014 Amended and Restated Equity Incentive Plan The board of directors of 2018 Equity Incentive Plan The Company’s board of directors adopted the Aterian, Inc. 2018 Equity Incentive Plan (the “2018 Plan”) on October 11, 2018. The 2018 Plan was approved by its stockholders on May 24, 2019 . Options granted to date under the Aterian 2014 Plan and the 2018 Plan generally vest either: (i) over a four-year thirty-six months three-year 33 1/3 66 2/3 2019 Equity Plan The Company’s board of directors adopted the Aterian, Inc. 2019 Equity Plan (the “2019 Equity Plan”) on March 20, 2019. The 2019 Equity Plan was approved by its stockholders on May 24, 2019. As of December 31, 2021, no shares were reserved for future issuance. Shares of restricted common stock granted under the 2019 Equity Plan initially vested in substantially equal installments on the 6th, 12th, 18th and 24th monthly anniversary of the closing of the Company’s initial public offering (“IPO”). The Company and the 2019 Equity Plan participants subsequently agreed to extend (i) the vesting date for the first installment of shares of restricted common stock under the 2019 Equity Plan to March 13, 2020 , (ii) the vesting date for the second installment of shares of restricted common stock to December 15, 2020 , (iii) the vesting date for the third installment of shares of restricted common stock to either January 18, 2021 or March 10, 2021 , and (iv) the vesting date for the fourth installment of shares of restricted common stock to July 1, 2021 or December 14, 2021 . Awards granted under the 2019 Equity Plan and not previously forfeited upon termination of service carry dividend and voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Under ASC Topic 718, the Company treats each award in substance as multiple awards as a result of the graded vesting and the fact that there is more than one requisite service period. Upon the prerequisite service period becoming probable, the day of the IPO, the Company recorded a cumulative catch-up expense and the remaining expense will be recorded under graded vesting. In the event the service of a participant in the 2019 Equity Plan (each, a “Participant”) is terminated due to an “involuntary termination”, then all of such Participant’s unvested shares of restricted common stock shall vest on the date of such involuntary termination unless, within three business days of such termination (1) the Company’s board of directors unanimously determines that such vesting shall not occur and (2) the remaining Participants holding restricted share awards covering at least 70 % of the shares of restricted common stock issued and outstanding under the 2019 Equity Plan determine that such vesting shall not occur. In the event of a forfeiture, voluntary or involuntary, of shares of restricted common stock granted under the 2019 Equity Plan, such shares are automatically reallocated to the remaining Participants in proportion to the number of shares of restricted common stock covered by outstanding awards that each such Participant holds . The following is a summary of stock options activity during the year-ended December 31, 2021: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance—January 1, 2021 1,570,728 $ 9.09 7.71 $ 12,756 Options granted — $ — — $ — Options exercised (1,011,422 ) $ 9.00 — $ — Options cancelled (36,401 ) $ 9.17 — $ — Balance—December 31, 2021 522,905 $ 9.25 6.77 $ 25,971 Exercisable as of December 31, 2021 520,256 $ 9.25 6.77 $ 25,971 Vested and expected to vest as of December 31, 2021 522,905 $ 9.25 6.77 $ 25,971 As of December 31, 2021, the total unrecognized compensation expense related to unvested options was less than $0.1 million, which the Company expects to recognize over an estimated weighted-average period of 0.17 years. During the year-ended December 31, 2021, no options were granted. A summary of restricted stock activity within the Company’s equity plans and changes for the year-ended December 31, 2021, is as follows: Restricted Stock Awards Shares Weighted Average Grant- Date Fair Value Nonvested at January 1, 2021 3,259,389 $ 13.51 Granted 2,028,547 $ 15.56 Vested (2,798,872 ) $ 13.56 Forfeited (382,884 ) $ 14.59 Nonvested at December 31, 2021 2,106,180 $ 14.94 As of December 31, 2021, the total unrecognized compensation expense related to unvested shares of restricted common stock Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes the total stock-based compensation expense by function, including expense related to consultants for years-ended December 31, 2020 and 2021 . Years-End December 31, 2019 2020 2021 (in thousands) Sales and distribution expenses $ 7,358 $ 2,533 $ 6,809 Research and development expenses 5,711 3,965 5,339 General and administrative expenses 21,612 16,218 16,839 Total stock-based compensation expense $ 34,681 $ 22,716 $ 28,987 |
Commitment and Contingencies
Commitment and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitment and Contingencies | 12. Inventory Purchases —As of December 31, 2020 and 2021, the Company had $55.0 million and $32.3 million, respectively, of inventory purchase orders placed with vendors waiting to be fulfilled. Sales or Other Similar Taxes —Based on the location of the Company’s current operations, the majority of sales tax is collected and remitted either by the Company or on its behalf by e-commerce marketplaces in most states within the U.S. To date, the Company has had no actual or threatened sales and use tax claims from any state where it does not already claim nexus or any state where it sold products prior to claiming nexus. However, the Company believes that the likelihood of incurring a liability as a result of sales tax nexus being asserted by certain states where it sold products prior to claiming nexus is probable. As of each of December 31, 2020 and December 31, 2021, the Company estimates that the potential liability, including current sales tax payable is approximately $0.5 million and $0.7 million, respectively, which has been recorded as an accrued liability. The Company believes this is the best estimate of an amount due to taxing agencies, given that such a potential loss is an unasserted liability that would be contested and subject to negotiation between the Company and the state, or decided by a court U.S. Department of Energy —In September 2019, the Company received a Test Notice from the U.S. Department of Energy (“DOE”) indicating that a certain dehumidifier model may not comply with applicable energy-conservation standards. The DOE requested that the Company provide it with several model units for DOE testing. If the Company is determined to have violated certain energy-conservation standards, it could be fined pursuant to DOE guidelines, and this civil penalty may be material to the Company’s consolidated financial statements. The Company intends to vigorously defend itself. The Company has submitted to the DOE testing process, made a good-faith effort to provide necessary notice as practicable, and included in a formal response to the DOE copies of the energy-efficiency report and certification that were issued for the dehumidifier model at the time of production. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the Test Notice received from the DOE. As of the date of the issuance of the accompanying condensed consolidated financial statements, the Company cannot reasonably estimate what, if any, penalties may be levied. U.S. Environmental Protection Agency — In September 2019, the Company received notice from the U.S. Environmental Protection Agency (“EPA”) that certain of its dehumidifier products were identified by the Association of Home Appliance Manufacturers (“AHAM”) as failing to comply with EPA ENERGY STAR requirements. For an appliance to be ENERGY STAR certified, it must meet standards promulgated by the EPA and enforced through EPA-accredited certification bodies and laboratories. The Company believes that its products are compliant, and the Company, in conjunction with its manufacturing partner, has disputed the AHAM testing determination pursuant to EPA guidelines. While a resolution remains pending, the Company is not selling or marketing the products identified by the EPA. The Company cannot be certain that these products will eventually be certified by the EPA, and the Company may incur costs that cannot presently be calculated in the event that the Company needs to make changes to the manner in which these products are manufactured and sold. In April 2020, the Company received notice from the EPA with respect to regulatory compliance and the advertising associated with certain of its dehumidifier products. The Company believes that its products are compliant, and the Company is currently in discussions with the EPA to resolve the matter. The EPA placed a hold on the sale of certain of the Company's dehumidifier inventory while it reviews the matter with the Company. The Company cannot be certain of the outcome with the EPA, and the Company may incur costs and penalties that cannot presently be calculated in the event that the Company is unable to resolve this matter with the EPA. Settlement Agreement — On May 2, 2021, the Company entered into a settlement agreement with one of the Company’s suppliers to agree to pay the amount of $3.0 million to the Company in three installments of $1.0 million each, with the first payment to be paid on or before May 31, 2021, the second payment to be paid on or before September 30, 2021, and the third payment to be paid on or before November 30, 2021. Further, the supplier agreed to deliver certain goods as part of this settlement by September 30, 2021. Through the date of the accompanying condensed consolidated financial statements, the supplier has not paid in full its required first payment of $ 1.0 million nor has it delivered the required quantity of goods. As such, the Company has fully reserved $ 4.1 million within prepaid and other current assets on its consolidated financial statements during the year-ended December 31 , 2021. The Company has commenced legal action against the supplier and continues to reserve its legal options and rights on this matter. Legal Proceedings —The Company is party to various actions and claims arising in the normal course of business. The Company does not believe that the final outcome of these matters will have a material adverse effect on the Company’s condensed consolidated financial position or results of operations. In addition, the Company maintains what it believes is adequate insurance coverage to further mitigate risk. However, no assurance can be given that the final outcome of such proceedings will not materially impact the Company’s condensed consolidated financial condition or results of operations. Further, no assurance can be given that the amount or scope of existing insurance coverage will be sufficient to cover losses arising from such matters. Securities Class Action — On May 13, 2021, a securities class action complaint was filed in the U.S. District Court for the Southern District of New York by Andrew Tate, naming the Company, Yaniv Sarig and Fabrice Hamaide as defendants. On June 10, 2021, a substantially similar securities class action complaint was filed in the same court by Jeff Coon against the same defendants. Thereafter, other stockholders asserted similar claims. On August 10, 2021, the court appointed Joseph Nolff as the lead plaintiff of the putative class action, and on October 12, 2021, he filed an amended complaint, (i) adding Arturo Rodriguez as a defendant, (ii) asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated thereunder and (iii) claiming that the defendants made false and materially misleading statements and failed to disclose material adverse facts regarding the Company’s business, operations, and prospects and that this was revealed on May 4, 2021, when Culper Research published a report allegedly exposing these alleged misrepresentations and omissions. The lead plaintiff has since filed two further amended complaints repeating substantively the same allegations. On March 10, 2022, the Company reached an agreement in principle to resolve this action for $1.3 million which the Company accrued for, subject to negotiation of a formal memorandum of understanding, the execution of final settlement documents, and court approval. If that process does not succeed, the Company is prepared to continue the full defense of this action. Shareholder Derivative Actions Related to the Securities Class Action — On October 21, October25 and November 10, 2021, three shareholder derivative actions were filed on behalf of the Company by Shaoxuan Zhang, Michael Sheller and Tyler Magnus in the U.S. District Court for the Southern District of New York. These actions, collectively, name Yaniv Sarig, Fabrice Hamaide, Arturo Rodriguez, Greg B. Petersen, Bari A. Harlam, Amy von Walter, William Kurtz, Roi Zion Zahut, Joseph A. Risico, Tomer Pascal and Mihal Chaouat-Fix as individual defendants, and the Company as a nominal defendant. These actions are predicated on substantively the same factual allegations contained in the above-described securities class action, and assert that the individual defendants (i) breached their fiduciary duties, (ii) misused their authority, (iii) were unjustly enriched and (iv) wasted corporate assets. The action filed by Michael Sheller also alleges that individual defendants Sarig and Hamaide are liable for contribution pursuant to Sections 10(b) and 21D of the Exchange Act in the event the Company is held liable in the Securities Class Action. The action filed by Shaoxuan Zhang alleges analogous liability on the part of Sarig, Hamaide and Rodriguez. Finally, the action filed by Shaoxuan Zhang also alleges that individual defendants Sarig, Harlam, Kurtz, Petersen and von Walter are liable for violations of Section 14(a) of the Exchange Act. The Company believes the allegations are without merit and intends to vigorously defend against these actions. The parties to these actions have agreed to stay this action pending resolution of the Securities Class Action, and given the tentative resolution of the Securities Class Action, the Company intends to engage with the parties for a resolution of these matters upon finalization of that settlement. However, the outcome of these legal proceedings are currently uncertain. Based on information available to the Company at present, the Company cannot reasonably estimate a range of loss or income for these actions. Sabby Contract Action —On September 20, 2021, Sabby Volatility Warrant Master Fund Ltd. (“Sabby”) sued the Company in the Supreme Court of the State of New York, New York County, alleging that the Company breached the Securities Purchase Agreement, dated June 10, 2021 (the “Purchase Agreement”), pursuant to which Sabby purchased 400,000 shares of the Company’s common stock, for an aggregate price of approximately $6 million. Sabby contends that certain of the representations and warranties made by the Company in the Purchase Agreement concerning its financial condition and the accuracy of its prior disclosures were untrue and that the Company breached the Purchase Agreement’s anti-dilution and use-of-proceeds covenants on both August 9, 2021 and September 23, 2021, when the Company resolved certain defaults with High Trail. The Company intends to vigorously defend against this action, and, on December 15, 2021, the Company filed a motion to dismiss, which was fully briefed as of February 11, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Loss before provision for income taxes consisted of the following for the periods indicated (in thousands): December 31, 2019 December 31, 2020 December 31, 2021 Domestic $ (58,718 ) $ (62,985 ) $ (233,846 ) International (42 ) (93 ) (1,646 ) Total $ (58,760 ) $ (63,078 ) $ (235,492 ) The components of the Company’s income tax provision were as follows for the periods indicated (in thousands): December 31, 2019 December 31, 2020 December 31, 2021 Current: Federal $ — $ — $ — State 21 28 72 Foreign 8 0 265 Total current 29 28 337 Deferred: Federal — — 253 State — 20 32 Foreign — — (90 ) Total deferred — 20 195 Income tax provision $ 29 $ 48 $ 532 The reconciliation of the Federal statutory income tax provision to the Company’s effective income tax provision is as follows for the periods indicated (in thousands): December 31, 2019 December 31, 2020 December 31, 2021 Income tax benefit at statutory rates $ (12,339 ) $ (13,246 ) $ (49,454 ) Permanent differences 325 6,434 3 Debt Extinguishment — — 33,746 Warrant Liabilities — — 11,066 Stock Compensation — — 10,602 Change in FV contingent consideration — — (3,143 ) Foreign rate differential (4 ) (4 ) (44 ) State income taxes, net of federal tax benefit (2,034 ) (2,056 ) (6,424 ) Other 45 313 264 Prior Year True-Up Adjustments — — (5,577 ) Valuation allowance 14,036 8,607 9,493 Total income tax expense $ 29 $ 48 $ 532 The Company’s effective tax rate was 0.08% and 0.23% for the years-ended December 31, 2020 and December 31, 2021, respectively. The Company’s deferred tax assets and liabilities as of the dates indicated were as follows (in thousands): December 31, 2020 December 31, 2021 Deferred tax assets: Sales returns reserve $ 133 $ 130 Net operating loss carryforwards 21,070 36,250 Stock options 12,336 3,592 Deferred revenue 14 15 Interest expense limitation 2,392 10,151 Intangibles 58 0 Other 1,917 2,364 Less: valuation allowances (37,823 ) (47,316 ) Net deferred tax assets 97 5,186 Deferred tax liabilities: Fixed assets (14 ) (18 ) Goodwill (103 ) (1,528 ) Prepaid Expenses — (3,562 ) Intangibles — (560 ) Contingent Consideration — (1,084 ) Other — (130 ) Less: valuation allowances — — Net deferred tax liabilities (117 ) (6,882 ) Net deferred tax assets (liabilities) $ (20 ) $ (1,696 ) The Company has temporary differences due to differences in recognition of revenue and expenses for tax and financial reporting purposes, principally related to net operating losses, inventory, depreciation, and other expenses that are not currently deductible or realizable. At December 31, 2020, the Company had approximately $87.0 million of gross federal net operating losses (“NOLs”), which will begin to expire in fiscal year 2034 if unused. The Company also has approximately $45.8 million apportioned state and local NOLs that expire between 2025 and 2035, depending on the state, if not used. At December 31, 2021, the Company had approximately $152.0 million of gross federal NOLs which will begin to expire in fiscal year 2034 if unused. The Company also has approximately $79.5 million apportioned state and local NOLs that expire between 2025 and 2035, depending on the state, if not used. The NOL carryforwards for federal and state income tax purposes which, generally, can be used to reduce future taxable income. The Company’s ability to utilize its NOL carryforwards may be limited pursuant to Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), if the Company has had a change in ownership of more than 50% of its capital stock over a three-year period pursuant to Section 382 of the Code. These complex changes of ownership rules generally focus on ownership changes involving stockholders owning directly or indirectly 5% or more of a company’s stock, including certain public “groups” of stockholders as set forth by Section 382 of the Code, including those arising from new stock issuances and other equity transactions . In response to COVID-19, various governments worldwide have enacted, or are in the process of enacting, measures to provide relief to businesses negatively affected by the pandemic. On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law in the U.S. The CARES Act provides relief to U.S. corporations through financial assistance programs and modifications to certain payroll and income tax provisions. In connection with the CARES Act and other financial relief measures worldwide, the Company has recognized $1.3 million of payroll related credits in other current liabilities for the years-ended December 31, 2021. The payroll related credits are recorded in other current liabilities within the consolidated balance sheet. The Company regularly assesses the realizability of its deferred tax assets and establishes a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Due to the Company’s history of net operating losses, the Company believes it is more likely than not its federal, state and foreign deferred tax assets will not be realized as of December 31, 2021. The Company’s major taxing jurisdictions are New Jersey, New York, Florida, Texas, Pennsylvania, Tennessee, Virginia and California. The Company files a U.S. Consolidated income tax return as well as tax returns in certain foreign jurisdictions. The Company is subject to examination in these jurisdictions for all years since inception. Fiscal years outside the normal statute of limitations remain open to audit due to tax attributes generated in the early years which have been carried forward and may be audited in subsequent years when utilized. The Company is not currently under examination for income taxes in any jurisdiction. The Company may be subject to audits covering a variety of tax matters by taxing authorities in any taxing jurisdiction where the Company conducts business. While the Company believes that the tax returns filed, and tax positions taken are supportable and accurate, some tax authorities may not agree with the positions taken. This can give rise to tax uncertainties which, upon audit, may not be resolved in the Company’s favor. As of December 31, 20 20 and 20 2 1 , the Company has not recorded any tax contingency accruals for uncertain tax positions. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Restated Voting Agreement On November 1, 2018, Dr. Larisa Storozhenko, Maximus Yaney and Asher Maximus I, LLC (the “Initial Designating Parties”) entered into a voting agreement with Mr. Asher Delug, one of the stockholders of the Company and a member of the Company’s board of directors, pursuant to which Mr. Delug will have the power to vote such number of shares of common stock as is equal to: (a) all of the shares of the Company’s common stock beneficially held by the Initial Designating Parties minus (b) such number of shares of common stock representing 19.9% of the total voting power of the Company’s capital stock outstanding with respect to the election of directors, the appointment of officers and any amendments of the Company’s amended and restated certificate of incorporation or amended and restated bylaws (the “Voting Agreement”). The Voting Agreement was amended and restated pursuant to a new Voting Agreement, dated March 13, 2019, by and among MV II, LLC, Dr. Larisa Storozhenko, Mr. Maximus Yaney, Mr. Delug and the Company (the “Restated Voting Agreement”). Under the Restated Voting Agreement, each of MV II, LLC, Dr. Larisa Storozhenko and Mr. Yaney (collectively, the “Designating Parties”) agreed to relinquish the right to vote their shares of the Company’s capital stock, and any of the Company’s other equity interests (collectively, the “Voting Interests”) by granting the Company’s board of directors the sole right to vote all of the Voting Interests as the Designating Parties’ proxyholder. The Voting Interests include all shares of the Company’s common stock currently held by the Designating Parties, as well as any of the Company’s securities or other equity interests acquired by the Designating Parties in the future. Pursuant to the proxy granted by the Designating Parties, the Company’s board of directors is required to vote all of the Voting Interests in direct proportion to the voting of the shares and equity interests voted by all holders other than the Designating Parties. The proxy granted by the Designating Parties under the Restated Voting Agreement is irrevocable. In addition, the Restated Voting Agreement proxyholder may not be changed unless the Company receives the prior approval of The Nasdaq Stock Market LLC. Under the Restated Voting Agreement, each of the Designating Parties further agreed not to purchase or otherwise acquire any shares of the Company’s capital stock or other equity securities, or any interest in any of the foregoing. The Restated Voting Agreement became effective on June 12, 2019 and will continue until the earlier to occur of (a) a Deemed Liquidation Event unless, immediately upon such Deemed Liquidation Event, the Company’s common stock is and remains listed on The Nasdaq Stock Market LLC, or (b) Mr. Yaney’s death. For purposes of the agreement, a “Deemed Liquidation Event” means (i) the acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is party other than a transaction or series of transactions in which the holders of the Company’s voting securities outstanding immediately prior to such transaction or series of transactions retain, immediately after such transaction or series of transactions, as a result of the Company’s shares held by such holders prior to such transaction or series of transactions, a majority of the total voting power represented by the Company’s outstanding voting securities or such other surviving or resulting entity; (ii) a sale, lease or other disposition of all or substantially all of the Company’s or its subsidiaries’ assets taken as a whole by means of any transaction or series of related transactions, except where such sale, lease or other disposition is to a wholly-owned subsidiary of the Company; or (iii) any liquidation, dissolution or winding up of the Company, whether voluntary or involuntary; however, a Deemed Liquidation Event shall not include any transaction effected primarily to raise capital for the Company or a spin-off or similar divestiture of the Company’s product or Managed PaaS business as part of reorganization of the Company approved by the Company’s board of directors. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 15. Basic net loss per share is determined by dividing net loss by the weighted-average shares of common stock outstanding during the period. Diluted net loss per share is determined by dividing net loss by diluted weighted-average shares outstanding. Diluted weighted-average shares reflect the dilutive effect, if any, of potentially dilutive shares of common stock, such as options to purchase common stock calculated using the treasury stock method and convertible notes using the “if-converted” method. In periods with reported net operating losses, all options to purchase common stock are deemed anti-dilutive such that basic net loss per share and diluted net loss per share are equal. The Company’s shares of restricted common stock are entitled to receive dividends and hold voting rights applicable to the Company’s common stock, irrespective of any vesting requirement. Accordingly, although the vesting commences upon the elimination of the contingency, the shares of restricted common stock are considered a participating security and the Company is required to apply the two-class method to consider the impact of the shares of restricted common stock on the calculation of basic and diluted earnings per share. The Company is currently in a net loss position and is therefore not required to present the two-class method; however, in the event the Company is in a net income position, the two-class method must be applied by allocating all earnings during the period to shares of common stock and shares of restricted common stock. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Year-Ended December 31, 2019 2020 2021 Net loss $ (58,789 ) $ (63,126 ) $ (236,024 ) Weighted-average number of shares used in computing net loss per share, basic and diluted 13,516,844 17,167,999 35,379,005 Net loss per share, basic and diluted $ (4.35 ) $ (3.68 ) $ (6.67 ) Anti-dilutive shares excluded from computation of net loss per share (in shares) 3,595,078 4,975,759 3,027,361 All other outstanding potentially dilutive securities, including shares of restricted common stock, common stock options (See Note 11) and common stock warrants (See Note 2) were excluded from the computation of diluted net loss per share because including them would have had an anti-dilutive effect. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | 16. 2019 Acquisitions Aussie Health Assets On September 10, 2019, the Company completed the acquisition of the assets of a personal wellness company (the “Aussie Health Assets”), whose products sell primarily on the Amazon US marketplace, for total consideration of $1.3 million, which was comprised of cash of $1.1 million and a promissory note for $0.2 million that accrues interest at a rate of 8% per annum and matures on June 10, 2020. The Company also paid $0.1 million in the form of a working capital payment related to the inventory purchased within sixty days of closing. The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at acquisition date: Total (in thousands) Inventory $ 297 Goodwill 745 Intangible assets 333 Net assets acquired $ 1,375 The amounts assigned to goodwill and major intangible asset classifications were as follows: Amount allocated Useful life (in years) (in thousands) Goodwill $ 745 n.a. Trademarks 310 5 Transition services agreement 11 < 1 Non-competition agreement 12 3 Total $ 1,078 2020 Acquisitions Truweo Assets On August 26, 2020, the Company completed the acquisition of the Truweo Assets, whose products sell primarily on the Amazon U.S. marketplace, for total consideration of $16.4 million, which was comprised of cash of $14.0 million and a promissory note for $ 2.4 million. The promissory note accrues interest at a rate of 8 % per annum, with $ 0.6 million principal and accrued interest payments due on November 30, 2021 , February 28, 2022 , and May 31, 2022 and matures on August 22, 2022 . The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date (in thousands): Total Inventory $ 595 Intangible assets 4,011 Goodwill 11,834 Net assets acquired $ 16,440 The amounts assigned to goodwill and major intangible asset classifications were as follows (in thousands, except the useful life): Amount Allocated Useful life (in years) Goodwill $ 11,834 n.a. Trademarks 3,900 10 Non-competition agreement 100 <1 Transition services agreement 11 3 Net intangible assets 15,845 Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Truweo products into the Company’s existing sales channels. Smash Assets On December 1, 2020, the Company completed the acquisition of the Smash Assets of (i) $25.0 million, (ii) 4,220,000 shares of common stock, the cost basis of which was $6.89 (closing stock price at closing of the transaction), of which 164,000 of such shares were issued to the sellers’ brokers, and (iii) a seller note in the amount of $15.6 million, representing the value of certain inventory that the sellers had paid for but not yet sold as of the closing date. In addition, subject to achievement of certain contribution margin thresholds on certain products of the acquired business for the fiscal years ending December 31, 2021 and December 31, 2022, the sellers will be entitled to receive earn out payments. The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date (in thousands): Total (in thousands) Goodwill $ 34,739 Trademarks 27,600 Inventory 16,419 Production deposits 3,382 AP and other liabilities (3,088 ) 79,052 The amounts assigned to goodwill and major intangible asset classifications were as follows (in thousands, except the useful life): Amount Allocated Useful life (in years) Goodwill $ 34,739 n.a. Trademarks 27,600 10 Net Intangible Assets 62,339 Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Smash products into the Company’s existing sales channels. 2021 Acquisitions Healing Solutions On February 2, 2021 (the “Closing Date”), the Company entered into and closed the Asset Purchase Agreement with Healing Solutions, LLC (“Healing Solutions”). Pursuant to the Asset Purchase Agreement, the Company purchased and acquired certain assets of Healing Solutions (the “Healing Solutions Assets”) related to Healing Solutions’ retail and e-commerce business under the Healing Solutions’ brands, Tarvol, Sun Essential Oils and Artizen (among others), which primarily sells essential oils through Amazon and other marketplaces (the “Asset Purchase”). The Asset Purchase was accounted for as a business combination using the acquisition method of accounting in accordance with ASC 805, Business Combinations. As consideration for the Asset Purchase, the Company (i) paid to Healing Solutions $15.3 million in cash (the “Cash Purchase Price”), and (ii) issued 1,387,759 within 60 days of the Closing Date In addition, Healing Solutions will be entitled to receive 170,042 shares of common stock (up to a maximum of 280,000 shares pursuant to certain terms and valuation at the measurement date) in respect of certain inventory. The shares will be issued to Healing Solutions following the final determination of inventory values pursuant to the terms of the Asset Purchase Agreement, which determination is expected to occur approximately nine to ten months following the Closing Date and such shares will be subject to vesting restrictions which will lapse on the date that is the one-year anniversary after the Closing Date. Pursuant to the terms of the Asset Purchase Agreement, Healing Solutions is required to use its commercially reasonable efforts to identify one or more suppliers of finished goods inventory of all SKUs that constitute assets acquired in the Asset Purchase (“New Suppliers”) and to initiate discussions with such New Suppliers for the purpose of negotiating new supply agreements between the Company or its affiliates, on the one hand, and the New Supplier, on the other hand, for the purchase of such SKUs following the Closing on terms acceptable to the Company in its sole discretion, acting reasonably. If, on or before the date that is 15 months after the Closing Date, an Earn-Out Consideration Event (as defined in the Asset Purchase Agreement) has occurred, then Healing Solutions shall be entitled to receive up to a maximum of 528,670 shares of common stock (the “Earn-Out Shares”), which number of shares is subject to reduction in accordance with the terms of the Asset Purchase Agreement based on the time period within which the Earn-Out Consideration Event occurs See Contingent earn-out liability considerations section below . The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 15,280 1,387,759 shares of Common Stock issued at the Closing 39,454 Seller note for inventory 5,285 Estimated earnout liability 11,273 Total consideration to be paid $ 71,292 The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory $ 8,215 Working Capital 202 Trademarks (10 year useful life) 22,900 Goodwill 39,975 Net assets acquired $ 71,292 Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Healing Solutions’ products into the Company’s existing sales channels. Squatty Potty Assets On acquired inventory. In addition, and subject to the achievement of contribution margin metrics for the year - ended December 31, 2021, the Company agreed to pay Squatty Potty a maximum earn - out of approximately $ 4.0 million, payable in shares of common stock or cash at Squatty Potty’s discretion. The Company also agreed to pay Squatty Potty $ 8.0 million for transition services, payable in shares of common stock or cash at Squatty Potty’s discretion. See Contingent earn-out liability considerations section below . The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 19,040 Transition services payments 8,231 Estimated earnout liability 3,502 Total consideration $ 30,773 The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory $ 1,471 Working Capital 230 Trademarks (10 year useful life) 6,500 Customer relationships 5,700 Goodwill (1) 16,872 Net assets acquired $ 30,773 (1) Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Squatty Potty products into the Company’s existing sales channel. Photo Paper Direct On May 5, 2021, the Company closed the acquisition of all outstanding stock of e-commerce company Photo Paper Direct Ltd. (“Photo Paper Direct”), a leading online seller of printing supplies. As consideration for Photo Paper Direct’s stock, the Company paid approximately $8.3 million in cash and issued approximately 704,500 shares of the Company’s common stock. The Company also paid approximately $5.4 million in cash as consideration related to Photo Paper Direct’s inventory and other working capital assets, including cash on hand of approximately $3.0 million. In addition, and subject to the achievement of certain Adjusted EBITDA metrics by December 31, 2021, the Company agreed to issue to Photo Paper Direct a maximum earn-out of $6.0 million in cash and $2.0 million in the Company’s common stock. See Contingent earn-out liability considerations section . The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 8,293 704,548 shares of common stock issued 11,075 Working capital adjustment 5,338 Estimated earnout liability 911 Total consideration $ 25,617 The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory $ 2,846 PP&E 86 Real Property 848 Working Capital 2,144 Trademarks (10 year useful life) 5,400 Goodwill (1) 15,774 Deferred tax liability (2) (1,481 ) Net assets acquired $ 25,617 (1) Estimate based on preliminary purchase price and most recent book values of tangible assets and prior to any deferred tax assets/liabilities. Subject to change based on the actual closing balance sheet and any purchase accounting adjustments. Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Photo Paper Direct products into the Company’s existing sales channels. (2) A measurement period adjustment was recorded that resulted in a deferred tax liability of $1.5 million, and corresponding increase in goodwill. Pro Forma Information The following unaudited pro forma information illustrates the impact of the acquisitions on the Company’s net revenue for the years-ended December 31, 2021, 2020 and 2019. The acquisitions are reflected in the following pro forma information as if the acquisitions had occurred on January 1, 2019. Year Ended December 31, 2019 2020 2021 (in thousands) Net revenue as reported $ 114,451 $ 185,704 $ 247,767 Aussie Health Assets net revenue 1,759 — — Smash net revenue (1) 42,994 83,132 — Truweo net revenue (2) 7,942 11,155 — Healing Solutions net revenue (3) — 78,646 4,600 Squatty Potty net revenue (4) — 14,919 6,024 Photo Paper Direct net revenue (5) — 13,721 6,334 Net revenue pro forma $ 167,146 $ 387,277 $ 264,725 Operating loss as reported $ (54,333 ) (34,751 ) (34,077 ) Aussie Health Assets operating income 310 — — Smash operating income (1) 4,163 15,221 — Truweo operating income (2) 3,616 5,484 — Healing Solutions operating income (3) — 7,792 382 Squatty Potty operating income (4) — 3,529 1,772 Photo Paper Direct operating income (5) — 3,364 1,152 Operating loss (income) pro forma $ (46,244 ) $ 639 $ (30,771 ) (1) In the accompanying consolidated financial statements for the year-ended December 31, 2020, net revenue, as reported, includes $ 16.1 million of net revenue from this acquisition. For the year-ended December 31, 2020, operating income, as reported, includes $4.5 million of operating income from this acquisition. (2) In the accompanying consolidated financial statements for the year-ended December 31, 2020, net revenue, as reported, includes $1.6 million of net revenue from this acquisition. For the year-ended December 31, 2020, operating income, as reported, includes $0.7 million of operating income from this acquisition. (3) In the accompanying consolidated financial statements (4) In the accompanying consolidated financial statements for the year-ended December 31, 2021, net revenue, as reported includes $ 10.1 million of net revenue from this acquisition. For the year-ended December 31, 2021, operating income, as reported, includes $ 4.2 million of operating income from this acquisition (5) In the accompanying consolidated financial statements for the year-ended December 31, 2021, net revenue, as reported includes $11.6 million of net revenue from this acquisition. For the year-ended December 31, 2021, operating loss, as reported, includes $1.3 million of operating income from this acquisition. The Company engaged a third-party valuation specialist to perform a valuation of the intangible assets acquired for all acquisitions. In performing the valuation, the Company’s management assessed the reasonableness of the projected financial information (“PFI”) by comparing it to the Company’s historical results and financial information for a peer group of the most similar public companies. Based on this review, the Company’s management determined the PFI is reasonable for business and intangible asset valuation purposes. Contingent earn-out liability considerations The Company reviews and re-assesses the estimated fair value of contingent consideration on a quarterly basis, and the updated fair value could differ materially from the initial estimates. Adjustments to the estimated fair value related to changes in all other unobservable inputs are reported in operating income. On December 1, 2020, the Company acquired the assets of leading e-commerce business brands Mueller, Pursteam, Pohl and Schmitt, and Spiralizer (the “Smash Assets”) for total consideration of (i) $25.0 million, (ii) 4,220,000 shares of common stock, the cost basis of which was $6.89 (closing stock price at closing of the transaction), of which 164,000 of such shares were issued to the sellers brokers and (iii) a seller note in the amount of $15.6 million, representing the value of certain inventory that the sellers had paid for but not yet sold as of the closing date. As part of the acquisition of the Smash Assets, the sellers of the Smash Assets are entitled to earn-out payments based on the achievement of certain contribution margin thresholds on certain products of the acquired business. Earn-out payments will be due to the sellers for year one, or calendar year 2021 in the first quarter of 2022, and year two, or calendar year 2022, will be due in the first quarter of 2023. For the year-ended December 31, 2021 (year one of the earn-out), the earn-out payment will be calculated based on the contribution margin generated on certain products for an amount equal to $1.67 for every $1.00 of such contribution margin that is greater than $15.5 million and less than or equal to $18.5 million. Such earn-out payment cannot exceed $5.0 million. In addition, during the year-ending December 31, 2022 (year two of the earn-out), for each $0.5 million of contribution margin generated on certain products in excess of $15.5 million, subject to a cap of $27.5 million, the sellers shall be entitled to receive an amount in cash equal to the value of 0.1 million shares of the Company’s common stock multiplied by the average of the volume-weighted-average closing price per share of the Company’s common stock, for the 30 consecutive trading days ending on December 31, 2022. As of December 1, 2020, the acquisition date, the initial fair value amount of the earn-out payment was appropriately $9.8 million. As of December 31, 2020, the fair value amount of the earn-out payment with respect to the Smash Assets was approximately $22.5 million, representing a change of fair value impact of approximately $12.7 million. As of December 31, 2021, the fair value amount of the earn-out payment with respect to the Smash Assets was approximately $5.2 million related to the calendar year 2022 earnout. The calendar year 2021 earnout is $0.0 million as it was not achieved. As part of the acquisition of the Healing Solutions Assets, Healing Solutions was entitled to earn-out payments based on the achievement of certain contribution margin thresholds on certain products of the acquired business. If the earn-out consideration event occurred: (i) prior to the date that is nine months following the Closing Date, the Company will issue 528,670 shares of its common stock to Healing Solutions; (ii) on or after the date that is nine months following the Closing Date but before the date that is 12 months following the Closing Date, the Company was to issue 396,502 shares of common stock to Healing Solutions; or (iii) on or after the date that is 12 months following the Closing Date but before the date that is 15 months following the Closing Date (the date that is 15 months following the Closing Date, the “Earn-Out Termination Date”), the Company was to issue 264,335 shares of common stock to Healing Solutions; or after 15 months, the Company would not had any obligation to issue any shares of its common stock to Healing Solutions. As of February 2, 2021, the acquisition date, the initial fair value amount of the earn-out payment with respect to the Healing Solutions Assets was appropriately $16.5 million. In November 2021, the Company issued 1.4 million shares of common stock in full settlement of the earn-out. As of December 31, 2021 there is no remaining earn-out liability related to Healing Solutions. As part of the acquisition of the Squatty Potty Assets, Squatty Potty is entitled to earn-out payments based on the achievement of certain contribution margin thresholds on certain products of the acquired business. If the earn-out consideration event occurs in 12 months end ed December 31, 2021 , the maximum payment amount is $ 3.9 million and if the termination of the transition service agreement is prior to the date that is nine months following the Closing Date, an additional $ 3.9 million. As of May 5, 2021, the acquisition date, the initial fair value amount of the earn-out payment with respect to the Squatty Potty Assets was appropriately $3.5 million. As of December 31, 2021, the fair value amount of the earn-out payment with respect to the Squatty Potty Assets was approximately $4.0 million, representing a net change of fair value impact of approximately $0.5 million for year-ended December 31, 2021. As of May 5, 2021, the acquisition date of Photo Paper Direct Ltd. (“Photo Paper Direct”), the initial fair value amount of the earn-out payment with respect to the Photo Paper Direct acquisition was appropriately $0.9 million. As of December 31, 2021, the fair value amount of the earn-out payment with respect to the Photo Paper Direct acquisition was approximately $0.0 million as the earnout was not achieved, representing a net change of fair value impact of approximately $0.9 million for the year-ended December 31, 2021. The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities (in thousands) as of December 31, 2021 (in thousands): December 31, 2021 Smash Assets Healing Solutions Squatty Potty Photo Paper Direct Total Balance—January 1, 2021 $ 22,531 $ — $ — $ — $ 22,531 Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares — 16,558 3,502 911 20,971 Change in fair value of contingent earn-out liabilities (17,291 ) (12,808 ) 481 (911 ) (30,529 ) Payment of contingent earn-out liability (1) — (3,750 ) — — (3,750 ) Balance—December 31, 2021 $ 5,240 $ — $ 3,983 $ — $ 9,223 (1) The $3.8 million payment relating to Healing Solutions earn-out was made with 1.4 million of the Company's common stock in November 2021. This resulted in a settlement charge of $4.2 million due to the difference of fair value of the shares issued on the settlement date versus the fair value of the earn-out on the date of the settlement. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | 17. The following tables summarize the changes in the Company’s intangible assets as of December 31, 2020 and December 31, 2021 (in thousands): December 1, 2020 December 31, 2020 December 31, 2020 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 745 $ 46,573 $ — $ 47,318 $ — $ — $ 47,318 - December 31, 2020 December 31, 2021 December 31, 2021 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 47,318 $ 72,623 $ — $ 119,941 $ — $ — $ 119,941 The following tables summarize the changes in the Company’s intangible assets as of December 31, 2020 and December 31, 2021 (in thousands): December 1, 2020 December 31, 2020 December 31, 2020 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Trademarks $ 310 $ 31,500 $ — $ 31,810 $ — $ (442 ) $ 31,368 Non-competition agreement 11 100 — 111 — (19 ) 92 Transition services agreement 12 11 — 23 — (23 ) — Total intangibles $ 333 $ 31,611 $ — $ 31,944 $ — $ (484 ) $ 31,460 December 31, 2020 December 31, 2021 December 31, 2021 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Trademarks $ 31,810 $ 34,100 $ — $ 65,910 $ — $ (6,332 ) $ 59,578 Non-competition agreement 111 — — 111 — (54 ) 57 Transition services agreement 23 — — 23 — (23 ) — Customer relations — 5,700 — 5,700 — (380 ) 5,320 Other — 700 — 700 — (700 ) — Total intangibles $ 31,944 $ 40,500 $ — $ 72,444 $ — $ (7,489 ) $ 64,955 The following table sets forth the estimated aggregate amortization of our in-place intangible assets and favorable intangible assets for the next five years and thereafter (amounts in thousands): 2022 $ 7,228 2023 7,214 2024 7,171 2025 7,130 2026 7,130 Thereafter 29,082 Total $ 64,955 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. SUBSEQUENT EVENTS Securities Purchase Agreement and Warrants On March 1, 2022, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with certain accredited investors identified on the signature pages to the Purchase Agreements (collectively, the “Purchasers”) pursuant to which, among other things, the Company issued and sold to the Purchasers, in a private placement transaction (the “Private Placement”), (i) 6,436,322 shares of the Company’s common stock (the “Shares”), par value $0.0001 per share (the “Common Stock”), and accompanying warrants to purchase an aggregate of 4,827,242 shares of Common Stock, and (ii) pre-funded warrants to purchase up to an aggregate of shares of Common Stock (the “Pre-Funded Warrants”) and accompanying warrants to purchase an aggregate of shares of Common Stock (the “Private Placement”). The accompanying warrants to purchase Common Stock are referred to herein collectively as the “Common Stock Warrants”, and the Common Stock Warrants and the Pre-Funded Warrants are referred to herein collectively as the “Warrants”. Under the Purchase Agreements, each Share and accompanying Common Stock Warrant were sold together at a combined price of $2.91, and each Pre-Funded Warrant and accompanying Common Stock Warrant were sold together at a combined price of $2.9099, for gross proceeds of approximately $27.5 million. n connection with the Private Placement, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with the Purchasers, pursuant to which the Company agreed to register for resale the Shares, as well as the shares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”). Under the Registration Rights Agreement, the Company has agreed to file a registration statement covering the resale by the Purchasers of the Shares and Warrant Shares (together, the “Registrable Securities”) within 30 days following the agreement date. Securities Class Action On March 10, 2022, the Company reached an agreement in principle, subject to negotiation of a formal memorandum of understanding, the execution of final settlement documents, and court approval, to resolve the securities class action lawsuit that was initiated on May 13, 2021, in the U.S. District Court for the Southern District of New York by Andrew Tate, naming the Company, Yaniv Sarig and Fabrice Hamaide as defendants. If that process does not succeed, the Company is prepared to continue the full defense of this action. The agreement in principle contemplates that the Company will pay $1.3 million and the Company has recorded an accrual for such amount within “accounts payable” on the consolidated balance sheets |
Schedule II-Valuation and Quali
Schedule II-Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2021 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II-Valuation and Qualifying Accounts and Reserves | ATERIAN, INC. AND SUBSIDIARIES Schedule II—Valuation and Qualifying Accounts and Reserves (All amounts in thousands) Balance at Beginning of Period Charged to Costs & Expenses Charged to Other Accounts Accounts Written Off or Deductions Balance at End of Period Description Year-ended December 31, 2019 Allowance for doubtful accounts $ — $ 35 $ — $ — $ 35 Deferred tax valuation allowance $ 15,167 $ — $ 14,036 $ — $ 29,203 Year-ended December 31, 2020 Allowance for doubtful accounts $ 35 $ — $ — $ (35 ) $ — Deferred tax valuation allowance $ 29,203 $ — $ 8,620 $ — $ 37,823 Year-ended December 31, 2021 Allowance for doubtful accounts $ — $ — $ — $ — $ — Deferred tax valuation allowance $ 37,823 $ — $ 9,493 $ — $ 47,316 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). |
Use of Estimates | Use of Estimates — Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period covered by the financial statements and accompanying notes. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Restricted Cash | Restricted Cash — As of December 31, 2020, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary within “other non-current assets” on the consolidated balance sheets and $3.3 million related to a returned deposit for inventory that a manufacturer required the Company to pay into an escrow account within “prepaid and other current assets” on the consolidated balance sheets . As of December 31, 2021, the Company has classified the following as restricted cash: $0.1 million related to its Chinese subsidiary within “other non-current assets” on the consolidated balance sheets, $2.0 million related to a letter of credit and $5.9 million for cash sweep accounts related to the Midcap Credit facility within “prepaid and other current assets” on the consolidated balance sheets. |
Accounts Receivable | Accounts Receivable —Accounts receivable are stated at historical cost less allowance for doubtful accounts. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a past history of write-offs, collections and current credit conditions. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. The Company generally does not require any security or collateral to support its receivables. The Company performs on-going evaluations of its customers and maintains an allowance for bad and doubtful receivables. On December 31, 2020 and 2021, the Company had no allowance for doubtful accounts. |
Concentration of Credit Risk | Concentration of Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company maintains cash and restricted cash with various domestic and foreign financial institutions of high credit quality. The Company performs periodic evaluations of the relative credit standing of all of the aforementioned institutions. The Company’s accounts receivables are derived from sales contracts with a large number of customers. The Company maintains reserves for potential credit losses on customer accounts when deemed necessary. Significant customers are those which represent more than 10% of the Company’s total net revenue or gross accounts receivable balance at the balance sheet date. During the years-ended December 31, 2020 and 2021, the Company had no one customer that accounted for 10% or more of total net revenue. In addition, as of December 31, 2020 and 2021, the Company has no one customer that accounted for 10% or more of gross accounts receivable. As of December 31, 2020 and 2021, approximately 68% and 42%, respectively, of its accounts receivable is held by the Company’s sales platform vendor, Amazon, which collects money on the Company’s behalf from its customers. The Company’s business is reliant on one key vendor which currently provides the Company with its sales platform, logistics and fulfillment operations, including certain warehousing for the Company’s net goods, and invoicing and collection of its revenue from the Company’s end customers. In 2020, approximately 88% of the Company’s revenue was through or with the Amazon sales platform and in 2021, 93% of its net revenue was through or with the Amazon sales platform. |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is provided for using the straight-line method over the estimated useful lives of the assets. Capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The estimated useful lives for significant property and equipment categories are as follows: Computer equipment and software 3 years Furniture, fixtures, and equipment 3-5 years Leasehold improvements and capital leases Shorter of remaining lease term or estimated useful life |
Income Taxes | Income Taxes —The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to operating loss carry-forwards and temporary differences between financial statement bases of existing assets and liabilities and their respective income tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in the income tax rates on deferred tax asset and liability balances is recognized in income in the period that includes the enactment date of such rate change. A valuation allowance is recorded for loss carry-forwards and other deferred tax assets when it is determined that it is more likely than not that such loss carry-forwards and deferred tax assets will not be realized. The Company recognizes the tax benefits on any uncertain tax positions taken or expected to be taken in the consolidated financial statements when it is more likely than not the position will be realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement. The Company recognizes estimated interest and penalties related to uncertain tax positions as a part of the provision for income taxes. |
Revenue Recognition | Revenue Recognition —The Company accounts for revenue in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”) . The Company adopted ASC Topic 606 as of January 1, 2017 using the full retrospective method. The standard did not affect the Company’s consolidated net loss, financial position, or cash flows. There were no changes to the timing of revenue recognition as a result of the adoption. The Company derives its revenue from the sale of consumer products. The Company sells its products directly to consumers through online retail channels and through wholesale channels. For direct-to-consumer sales, the Company considers customer order confirmations to be a contract with the customer. Customer confirmations are executed at the time an order is placed through third-party online channels. For wholesale sales, the Company considers the customer purchase order to be the contract. For all of the Company’s sales and distribution channels, revenue is recognized when control of the product is transferred to the customer (i.e., when the Company’s performance obligation is satisfied), which typically occurs at shipment date. As a result, the Company has a present and unconditional right to payment and record the amount due from the customer in accounts receivable. Revenue from consumer product sales is recorded at the net sales price (transaction price), which includes an estimate of future returns based on historical return rates. There is judgment in utilizing historical trends for estimating future returns. The Company’s refund liability for sales returns was $0.5 million and $0.6 million at December 31, 2020 and 2021, respectively, which is included in accrued liabilities and represents the expected value of the refund that will be due to its customers. The Company evaluated principal versus agent considerations to determine whether it is appropriate to record platform fees paid to Amazon as an expense or as a reduction of revenue. Platform fees are recorded as sales and distribution expenses and are not recorded as a reduction of revenue because it owns and controls all the goods before they are transferred to the customer. The Company can, at any time, direct Amazon, similarly, other third-party logistics providers (“Logistics Providers”), to return the Company’s inventory to any location specified by the Company. It is the Company’s responsibility to make customers whole following any returns made by customers directly to Logistic Providers and the Company retains the back-end inventory risk. Further, the Company is subject to credit risk (i.e., credit card chargebacks), establishes prices of its products, can determine who fulfills the goods to the customer (Amazon or the Company) and can limit quantities or stop selling the goods at any time. Based on these considerations, the Company is the principal in this arrangement. Performance Obligations . A performance obligation is a promise in a contract to transfer a distinct good to the customer and is the unit of account in ASC Topic 606. A contract’s transaction price is recognized as revenue when the performance obligation is satisfied. Each of the Company’s contracts have a single distinct performance obligation, which is the promise to transfer individual goods. For consumer product sales, the Company has elected to treat shipping and handling as fulfillment activities, and not a separate performance obligation. Accordingly, the Company recognizes revenue for its single performance obligation related to product sales at the time control of the merchandise passes to the customer, which is generally at the time of shipment. The Company bills customers for charges for shipping and handling on certain sales and such charges are recorded as part of net revenue. Shipping and handling revenue for each of the years-ended December 31, 2020 and 2021 were de minimis. For each contract, the Company considers the promise to transfer products to be the only identified performance obligation. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which the Company expects to be entitled. All of the Company’s direct and wholesale revenue for the years-ended December 31, 2020 and 2021 are recognized at a point in time. Sales taxes —Consistent with prior periods, sales taxes collected from customers are presented on a net basis and as such are excluded from net revenue. Net Revenue by Category : The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Year-Ended December 31, 2019 (in thousands) Direct Wholesale Managed Platform as a Service (“PaaS”) Total North America $ 111,168 $ 1,408 $ 1,685 $ 114,261 Other 190 — — 190 Total net revenue $ 111,358 $ 1,408 $ 1,685 $ 114,451 Year-Ended December 31, 2020 (in thousands) Direct Wholesale Managed PaaS Total North America $ 164,162 $ 20,150 $ 1,336 $ 185,648 Other 56 — — 56 Total net revenue $ 164,218 $ 20,150 $ 1,336 $ 185,704 Year-Ended December 31, 2021 (in thousands) Direct Wholesale Managed PaaS Total North America $ 232,067 $ 11,528 $ 422 $ 244,017 Other 3,750 — — $ 3,750 Total net revenue $ 235,817 $ 11,528 $ 422 $ 247,767 Net Revenue by Product Categories : The following table sets forth the Company’s net revenue disaggregated by product categories: Year-Ended December 31, 2019 2020 2021 (in thousands) Heating, cooling and air quality $ 58,025 $ 78,424 $ 73,685 Kitchen appliances 26,917 29,711 43,180 Health and beauty 14,948 26,070 15,579 Personal protective equipment — 15,488 6,073 Cookware, kitchen tools and gadgets 6,898 14,868 22,933 Home office 172 7,669 12,352 Housewares 3,206 3,277 33,951 Essential oils and related accessories — — 27,444 Other 2,600 8,861 12,148 Total net product revenue 112,766 184,368 247,345 Managed PaaS 1,685 1,336 422 Total net revenue $ 114,451 $ 185,704 $ 247,767 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company’s financial instruments, including net accounts receivable, accounts payable, and accrued and other current liabilities are carried at historical cost. At December 31, 2021, the carrying amounts of these instruments approximated their fair values because of their short-term nature. The Company’s credit facility is carried at amortized cost at December 31, 2020 and December 31, 2021 and the carrying amount approximates fair value as the stated interest rate approximates market rates currently available to the Company. The Company considers the inputs utilized to determine the fair value of the borrowings to be Level 2 inputs. The fair value of the outstanding warrants were measured using the Monte Carlo Simulation model. Due to the complexity of the warrants issued, the Company uses an outside expert to assist in providing the mark to market fair valuation of the liabilities over the reporting periods in which the original agreement was in effect. Inputs used to determine estimated fair value of the warrant liabilities include the fair value of the underlying stock at the valuation date, the term of the warrants, and the expected volatility of the underlying stock. The significant unobservable input used in the fair value measurement of the warrant liabilities is the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term result in a directionally similar impact to the periodic fair value measurement of the outstanding warrant liability, and are recorded within the Change in fair market value of warrant line item on the statement of operations. The fair value of the contingent consideration related to business combinations is estimated using a probability-adjusted discounted cash flow model. These fair value measurements are based on significant inputs not observable in the market. The key internally developed assumptions used in these models are discount rates and the probabilities assigned to the milestones to be achieved. The company remeasures the fair value of the contingent consideration at each reporting period, and any changes in fair value resulting from either the passage of time or events occurring after the acquisition date, such as changes in discount rates, or in the expectations of achieving the performance targets, are recorded within the change in fair value of contingent earn-out liabilities line item on the statement of operations. Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is defined as the exchange price that would be received for an asset or an exit price that would be paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The authoritative guidance on fair value measurements establishes a three-tier fair value hierarchy for disclosure of fair value measurements as follows: Level 1 —Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date; Level 2 —Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and Level 3 —Unobservable inputs that are supported by little or no market data for the related assets or liabilities. |
Goodwill | Goodwill — The Company operates under one business component which is the same as its reporting unit based on the guidance in ASC Topic 350-20. The Company engaged a third-party valuation specialist to assist management in performing its annual goodwill impairment test in December 2021. For goodwill, impairment testing is based upon the best information available using a combination of the discounted cash flow method (a form of the income approach), the guideline public company method, and guideline transaction method (both market approaches). Under the income approach, or discounted cash flow method, the significant assumptions used are projected net revenue, projected contribution margin (product operating margin before fixed costs), fixed costs, terminal growth rates and the cost of capital. Projected net revenue, projected contribution margin and terminal growth rates were determined to be significant assumptions because they are the three primary drivers of the projected cash flows in the discounted cash flow fair value model. Cost of capital is another significant assumption as the discount rate is used to calculate the current fair value of those projected cash flows. Under the guideline public company method and guideline transaction method, significant assumptions relate to the selection of appropriate guideline companies and transactions and the valuation multiples used in the market analysis. The Company believes that the assumptions and estimates made are reasonable and appropriate, and changes in the assumptions and estimates could have a material impact on its reported financial results. In addition, sustained declines in the Company’s stock price and related market capitalization could impact key assumptions in the overall estimated fair values of its reporting unit and could result in non-cash impairment charges that could be material to the Company's consolidated balance sheet or results of operations. The company began to experience improvement in its operating margins and additional improvement in its products performance before the inclusion of fixed costs. These improvements, coupled with the Company’s acquisitions, supported the Company’s conclusion that it would generate significant improvements in its operating results. Since December 31, 202 0 , the Company has had an additional increase in the amount of goodwill through acquisitions made in 2021. Although the Company has experienced volatility in its share price and short-term forecasts, impacting its going concern analysis due to lender covenant risks, the Company believes it has had no triggering events as its overall long-term forecasts remain materially the same as of December 31, 2021. However, if the Company continues to experience downward share price volatility or there are material reductions in long-term forecasts the excess fair-value over its carrying value could be reduced significantly and could lead to a triggering event and ultimately to a goodwill impairment charge . The Company performed a full step one impairment test at December 31, 2021 and concluded no impairment and that its estimated fair-values exceeded its carrying values by 21 % as of the year-ended December 31, 2021 . The Company will continue to closely monitor actual results versus expectations as well as whether and to what extent any significant changes in current events or conditions, including changes to the impacts of COVID-19 on its business, result in corresponding changes to its expectations about future estimated cash flows, discount rates and market multiples. If the Company’s adjusted expectations of the operating results do not materialize, if the discount rate increases (based on increases in interest rates, market rates of return or market volatility) or if market multiples decline, we may be required to record goodwill impairment charges, which may be material. While the Company believes our conclusions regarding the estimates of fair value of its reporting unit is appropriate, these estimates are subject to uncertainty and by nature include judgments and estimates regarding various factors. These factors include the rate and extent of growth in the markets that our reporting units serve, the realization of future sales price and volume increases, fluctuations in exchange rates, fluctuations in price and availability of key raw materials, future operating efficiencies and, as it pertains to discount rates, the volatility in interest rates and costs of equity. |
Intangible Assets | Intangible assets — Intangible assets with finite lives are amortized over their estimated useful life on a straight-line basis. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization. The Company tests these assets for potential impairment whenever its management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset’s useful life and the impact of an event or circumstance on either an asset’s useful life or carrying value involve significant judgment regarding estimates of the future cash flows associated with each asset. |
Business Combinations | Business Combinations —In accordance with FASB ASC Topic 805 “Business Combinations", acquired assets and liabilities assumed as part of a business acquisition are generally recorded at their fair value at the date of acquisition. The excess of purchase price over the fair value of assets acquired and liabilities assumed is recorded as goodwill. Determining fair value of identifiable assets, particularly intangibles, and liabilities acquired also requires management to make estimates, which are based on all available information and in some cases assumptions with respect to the timing and amount of future revenues and expenses associated with an asset. |
Accounting and Contingent Consideration | Accounting and Contingent Consideration — The Company’s acquisitions include contingent consideration as part of the purchase price. The fair value of the contingent consideration is estimated as of the acquisition date based on the present value of the contingent payments to be made using a weighted probability of possible payments. The unobservable inputs used in the determination of the fair value of the contingent consideration include management’s assumptions about the likelihood of payment based on the established benchmarks and discount rates based on internal rate of return analysis. The fair value measurement includes inputs that are Level 3 measurements. If actual results increase or decrease as compared to the assumption used in the Company’s analysis, the fair value of the contingent consideration obligations will increase or decrease, up to the contracted limit, as applicable. Changes in the fair value of the contingent earn-out consideration could cause a material impact and volatility in the Company’s operating results. |
Inventory and Cost of Goods Sold | Inventory and Cost of Goods Sold —The Company’s inventory consists almost entirely of finished goods. The Company currently records inventory on its balance sheet on a first-in first-out basis, or net realizable value, if it is below the Company’s recorded cost. The Company’s costs include the amounts it pays manufacturers for product, tariffs and duties associated with transporting product across national borders, and freight costs associated with transporting the product from its manufacturers to its warehouses, as applicable. The “Cost of goods sold” line item in the consolidated statements of operations consists of the book value of inventory sold to customers during the reporting period and amortization of inventory step-up from acquisitions |
Sales and Distribution | Sales and Distribution— Sales and distribution expenses consist of online advertising costs, marketing and promotional costs, sales and e-commerce platform commissions, fulfillment, including shipping and handling, and warehouse costs (i.e. sales and distribution variable expenses). Further, sales and distribution expenses also include employee compensation and benefits and other related fixed costs. Costs associated with the Company’s advertising and sales promotion are expensed as incurred and are included in sales and distribution expenses. For the years - ended December 31, 2019 , 20 20 and 20 2 1 , the Company recognized $ 4.8 million, $ 6.3 million and $ 9.0 million , respectively, for advertising costs, which consists primarily of online advertising expense. Shipping and handling expense is included in the Company’s consolidated statements of operations within sales and distribution expenses. This includes pick and pack costs and outbound transportation costs to ship goods to customers performed by e-commerce platforms or incurred directly by the Company’s own fulfillment operations. The Company’s expense for shipping and handling was $ 17.2 million, $ million and $ 43.4 million during fiscal years 2019, 20 20 and 20 2 1 , respectively. |
Research and Development | Research and Development — Research and development expenses include compensation and employee benefits for technology development employees, travel related costs, and fees paid to outside consultants related to development of the Company’s owned intellectual property and technology. |
General and Administrative | General and Administrative —General and administrative expenses include compensation and employee benefits for executive management, finance administration, legal, and human resources, facility costs, travel, professional service fees and other general overhead costs. |
Stock-Based Compensation | Stock-Based Compensation— Stock-based compensation expense to employees is measured based on the grant-date fair value of the awards and recognized in the consolidated statements of operations over the period during which the employee is required to perform services in exchange for the award (the vesting period of the award). The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model. The Black-Scholes option-pricing model requires the input of highly subjective assumptions, including the fair value of the Company’s underlying common stock, the expected term of stock options, the expected volatility of the price of its common stock, risk-free interest rates and the expected dividend yield of its common stock. The assumptions used in the Company’s option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, the Company’s stock-based compensation expense could be materially different in the future. These assumptions are estimated as follows: • Risk-Free Interest Rate . The Company based the risk-free interest rate used in the Black-Scholes valuation model on the implied yield available on U.S. Treasury zero-coupon bonds with an equivalent remaining term of the stock options for each stock option group. • Expected Term . The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options vesting term and contractual expiration period, as it does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. • Expected Volatility . The Company determines the price volatility factor based on the historical volatility of publicly-traded industry peers. To determine its peer group of companies, the Company considers public companies in the technology industry and selects those that are similar to the Company in size, stage of life cycle and financial leverage. The Company does not rely on implied volatilities of traded options in its industry peers’ common stock because the volume of activity is relatively low. • Expected Dividend Yield . The Company has not paid and does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero. If any of the assumptions used in the Black-Scholes option-pricing model changes significantly, stock-based compensation for future awards may differ materially compared with the awards granted previously. The Company recognizes forfeitures as they occur, which results in a reduction in compensation expense at the time of forfeiture. |
Foreign Currency | Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the local currency. All assets and liabilities of foreign subsidiaries are translated at the current exchange rate as of the end of the period, and revenues and expenses are translated at the average exchange rates in effect during the period. The gain or loss resulting from the process of translating foreign currency financial statements into U.S. dollars is reflected as a foreign currency cumulative translation adjustment and reported as a component of accumulated other comprehensive income loss. Foreign currency transaction gains and losses resulting from or expected to result from transactions denominated in a currency other than the functional currency are recognized in other expense, net in the consolidated statements of operations. The Company recorded net loss from foreign currency transactions of less than $0.1 million for each of the years-ended December 31, 2019, 2020 and 2021. |
Net Loss Per Share | Net Loss Per Share —The Company computes basic earnings per share using the weighted-average number of shares of common stock outstanding during the period. For periods in which the Company reports net losses, diluted net loss per share attributable to |
Segment Information | Segment Information —The Company reports segment information in accordance with ASC Topic No. 280 “Segment Reporting.” The Company has one reportable segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) permits an emerging growth company to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. The Company has elected to use this extended transition period until it is no longer an emerging growth company or until it affirmatively and irrevocably opts out of the extended transition period. As a result, the Company’s financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Adopted Accounting Standards In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) On January 1, 2022, the Company recorded an aggregate of approximately $0.7 million of right-of-use assets and corresponding $0.7 million of lease liabilities upon adoption of this standard. In August 2018, the FASB issued ASU No. 2018-15, “Customer’s Accounting for Implementation Cost Incurred in a Cloud Computing Arrangement That Is a Service Contract” The new guidance was adopted on January 1, 2022 with no material impact on the Company’s consolidated financial statements. In August 2020, the FASB issued ASU No. 2020-06, “Debt—Debt with Conversion and Other Options (Topic 470) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Topic 814): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” The new guidance was adopted on January 1, 2022 with no material impact on the Company’s consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13: Financial Instruments – Credit Losses (Topic 326). In December 2019, the FASB issued ASU 2019-12, Income Taxes . This ASU provides for certain updates to reduce complexity in accounting for income taxes, including the utilization of the incremental approach for intra-period tax allocation, among others. This standard is effective for fiscal years beginning after December 15, 2021, and for interim periods beginning after December 15, 2022 with early adoption permitted. While the Company has not completed its evaluation of the impact of adoption of this standard, the Company does not expect it to have a material impact on its condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives for significant property and equipment categories are as follows: Computer equipment and software 3 years Furniture, fixtures, and equipment 3-5 years Leasehold improvements and capital leases Shorter of remaining lease term or estimated useful life |
Net Revenue Disaggregated by Sales Channel and Geographic Region | Net Revenue by Category : The following table sets forth the Company’s net revenue disaggregated by sales channel and geographic region based on the billing addresses of its customers: Year-Ended December 31, 2019 (in thousands) Direct Wholesale Managed Platform as a Service (“PaaS”) Total North America $ 111,168 $ 1,408 $ 1,685 $ 114,261 Other 190 — — 190 Total net revenue $ 111,358 $ 1,408 $ 1,685 $ 114,451 Year-Ended December 31, 2020 (in thousands) Direct Wholesale Managed PaaS Total North America $ 164,162 $ 20,150 $ 1,336 $ 185,648 Other 56 — — 56 Total net revenue $ 164,218 $ 20,150 $ 1,336 $ 185,704 Year-Ended December 31, 2021 (in thousands) Direct Wholesale Managed PaaS Total North America $ 232,067 $ 11,528 $ 422 $ 244,017 Other 3,750 — — $ 3,750 Total net revenue $ 235,817 $ 11,528 $ 422 $ 247,767 |
Net Revenue Disaggregated by Product Categories | Net Revenue by Product Categories : The following table sets forth the Company’s net revenue disaggregated by product categories: Year-Ended December 31, 2019 2020 2021 (in thousands) Heating, cooling and air quality $ 58,025 $ 78,424 $ 73,685 Kitchen appliances 26,917 29,711 43,180 Health and beauty 14,948 26,070 15,579 Personal protective equipment — 15,488 6,073 Cookware, kitchen tools and gadgets 6,898 14,868 22,933 Home office 172 7,669 12,352 Housewares 3,206 3,277 33,951 Essential oils and related accessories — — 27,444 Other 2,600 8,861 12,148 Total net product revenue 112,766 184,368 247,345 Managed PaaS 1,685 1,336 422 Total net revenue $ 114,451 $ 185,704 $ 247,767 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Inventory on-hand $ 22,753 $ 48,079 Inventory in-transit 8,829 14,966 Inventory $ 31,582 $ 63,045 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts Receivable Net Current [Abstract] | |
Summary of Accounts Receivable | Accounts receivable consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Trade accounts receivable $ 5,747 $ 10,478 Allowance for doubtful accounts — — Accounts receivable—net $ 5,747 $ 10,478 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Computer equipment and software $ 613 $ 943 Furniture, fixtures and equipment 91 91 Leasehold improvements 56 56 Building — 723 Subtotal 760 1,813 Less: accumulated depreciation and amortization (591 ) (559 ) Property and equipment—net $ 169 $ 1,254 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value | The categorization of a financial instrument within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table summarizes the fair value of the Company’s financial assets that are measured at fair value for the years-ended December 31, 2020 and 2021 (in thousands): December 31, 2020 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 26,718 $ — $ — Restricted Cash 3,379 — — Liabilities: Estimated fair value of contingent earn-out considerations — — 22,531 Fair market value of warrant liability — — 31,821 December 31, 2021 Fair Value Measurement Category Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 30,317 $ — $ — Restricted cash 7,998 — — Liabilities: Estimated fair value of contingent earn-out considerations — — 9,223 Fair market value of warrant liability — — — |
Summary of Activity of the Level 3 Liabilities Carried at Fair Value on a Recurring Basis | A summary of the activity of the Level 3 liabilities carried at fair value on a recurring basis for the years-ended December 31, 2020 and 2021 are as follows (in thousands): Balance at December 31, 2020 $ 31,821 Modification of warrant liability to equity classification (58,276 ) Change in fair value of warrant liability 26,455 Balance at December 31, 2021 $ — Balance at December 31, 2020 $ 22,531 Fair value at issuance of contingent earn-out liability 20,971 Change in fair value of contingent earn-out liability (30,529 ) Payment of contingent earn-out liability (3,750 ) Balance at December 31, 2021 $ 9,223 |
Prepaid and Other Current Ass_2
Prepaid and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense And Other Assets Current [Abstract] | |
Schedule of Prepaid And Other Current Assets | Prepaid and other current assets consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Prepaid inventory $ 4,361 $ 4,137 Restricted cash 3,250 7,998 Prepaid insurance 1,504 2,440 Consulting fees 738 2,263 Amazon global logistics — 2,865 Other 1,258 1,331 Prepaid and other current assets $ 11,111 $ 21,034 |
Accrued and Other Current Lia_2
Accrued and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities And Other Liabilities [Abstract] | |
Schedule of Components of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following as of December 31, 2020 and 2021 (in thousands): December 31, 2020 December 31, 2021 Accrued compensation costs $ 293 $ 162 Accrued professional fees and consultants 483 331 Accrued logistics costs 1,068 578 Product related accruals 3,221 2,984 Sales tax payable 457 678 Sales return reserve 547 590 Accrued fulfillment expense 381 744 Accrued insurance 952 967 Federal payroll taxes payable 330 4,449 Accrued interest payable 137 338 All other accruals 471 5,800 Accrued and other current liabilities $ 8,340 $ 17,621 |
Credit Facility and Term Loans
Credit Facility and Term Loans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Interest Expense, Net | Interest expense, net consisted of the following for the years-ended December 31, 2020 and 2021 (in thousands): Years Ended December 31, 2019 2020 2021 Interest expense $ 4,532 $ 5,038 $ 13,250 Interest income (146 ) (59 ) (595 ) Total interest expense, net $ 4,386 $ 4,979 $ 12,655 |
MidCap Credit Facility | |
Schedule of Credit Facility and Term Loans | The Company’s credit facility consisted of the following as of December 31, 2021: December 31, 2021 (in thousands) MidCap Credit Facility – December 2021 34,119 Less: deferred debt issuance costs (691 ) Less: discount associated with issuance of warrants (583 ) Total MidCap Credit Facility – December 2021 $ 32,845 |
High Trail Loan December 2020 Note | |
Schedule of Credit Facility and Term Loans | The December 2020 Note consisted of the following as of December 31, 2020: December 31, 2020 (in thousands) December 2020 Note $ 43,000 Less: deferred debt issuance costs (2,207 ) Less: discount associated with issuance of warrants (9,839 ) Less: discount associated with original issuance of loan (4,692 ) High Trail warrant 31,821 Total December 2020 Note 58,083 Less-current portion (21,600 ) Term loan-non current portion $ 36,483 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Options Activity | The following is a summary of stock options activity during the year-ended December 31, 2021: Options Outstanding Number of Options Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (years) Aggregate Intrinsic Value Balance—January 1, 2021 1,570,728 $ 9.09 7.71 $ 12,756 Options granted — $ — — $ — Options exercised (1,011,422 ) $ 9.00 — $ — Options cancelled (36,401 ) $ 9.17 — $ — Balance—December 31, 2021 522,905 $ 9.25 6.77 $ 25,971 Exercisable as of December 31, 2021 520,256 $ 9.25 6.77 $ 25,971 Vested and expected to vest as of December 31, 2021 522,905 $ 9.25 6.77 $ 25,971 |
Summary of Restricted Stock Activity | A summary of restricted stock activity within the Company’s equity plans and changes for the year-ended December 31, 2021, is as follows: Restricted Stock Awards Shares Weighted Average Grant- Date Fair Value Nonvested at January 1, 2021 3,259,389 $ 13.51 Granted 2,028,547 $ 15.56 Vested (2,798,872 ) $ 13.56 Forfeited (382,884 ) $ 14.59 Nonvested at December 31, 2021 2,106,180 $ 14.94 |
Summary of Total Stock-based Compensation Expense by Function | Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes the total stock-based compensation expense by function, including expense related to consultants for years-ended December 31, 2020 and 2021 . Years-End December 31, 2019 2020 2021 (in thousands) Sales and distribution expenses $ 7,358 $ 2,533 $ 6,809 Research and development expenses 5,711 3,965 5,339 General and administrative expenses 21,612 16,218 16,839 Total stock-based compensation expense $ 34,681 $ 22,716 $ 28,987 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Tax Expense | Loss before provision for income taxes consisted of the following for the periods indicated (in thousands): December 31, 2019 December 31, 2020 December 31, 2021 Domestic $ (58,718 ) $ (62,985 ) $ (233,846 ) International (42 ) (93 ) (1,646 ) Total $ (58,760 ) $ (63,078 ) $ (235,492 ) |
Schedule of Components of Income Tax Provision | The components of the Company’s income tax provision were as follows for the periods indicated (in thousands): December 31, 2019 December 31, 2020 December 31, 2021 Current: Federal $ — $ — $ — State 21 28 72 Foreign 8 0 265 Total current 29 28 337 Deferred: Federal — — 253 State — 20 32 Foreign — — (90 ) Total deferred — 20 195 Income tax provision $ 29 $ 48 $ 532 |
Schedule of Federal Statutory Income Tax Rate Reconciliation | The reconciliation of the Federal statutory income tax provision to the Company’s effective income tax provision is as follows for the periods indicated (in thousands): December 31, 2019 December 31, 2020 December 31, 2021 Income tax benefit at statutory rates $ (12,339 ) $ (13,246 ) $ (49,454 ) Permanent differences 325 6,434 3 Debt Extinguishment — — 33,746 Warrant Liabilities — — 11,066 Stock Compensation — — 10,602 Change in FV contingent consideration — — (3,143 ) Foreign rate differential (4 ) (4 ) (44 ) State income taxes, net of federal tax benefit (2,034 ) (2,056 ) (6,424 ) Other 45 313 264 Prior Year True-Up Adjustments — — (5,577 ) Valuation allowance 14,036 8,607 9,493 Total income tax expense $ 29 $ 48 $ 532 |
Components of Deferred Tax Assets and Liabilities | The Company’s effective tax rate was 0.08% and 0.23% for the years-ended December 31, 2020 and December 31, 2021, respectively. The Company’s deferred tax assets and liabilities as of the dates indicated were as follows (in thousands): December 31, 2020 December 31, 2021 Deferred tax assets: Sales returns reserve $ 133 $ 130 Net operating loss carryforwards 21,070 36,250 Stock options 12,336 3,592 Deferred revenue 14 15 Interest expense limitation 2,392 10,151 Intangibles 58 0 Other 1,917 2,364 Less: valuation allowances (37,823 ) (47,316 ) Net deferred tax assets 97 5,186 Deferred tax liabilities: Fixed assets (14 ) (18 ) Goodwill (103 ) (1,528 ) Prepaid Expenses — (3,562 ) Intangibles — (560 ) Contingent Consideration — (1,084 ) Other — (130 ) Less: valuation allowances — — Net deferred tax liabilities (117 ) (6,882 ) Net deferred tax assets (liabilities) $ (20 ) $ (1,696 ) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss per Share | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data): Year-Ended December 31, 2019 2020 2021 Net loss $ (58,789 ) $ (63,126 ) $ (236,024 ) Weighted-average number of shares used in computing net loss per share, basic and diluted 13,516,844 17,167,999 35,379,005 Net loss per share, basic and diluted $ (4.35 ) $ (3.68 ) $ (6.67 ) Anti-dilutive shares excluded from computation of net loss per share (in shares) 3,595,078 4,975,759 3,027,361 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Acquisition [Line Items] | |
Pro Forma Information | The following unaudited pro forma information illustrates the impact of the acquisitions on the Company’s net revenue for the years-ended December 31, 2021, 2020 and 2019. The acquisitions are reflected in the following pro forma information as if the acquisitions had occurred on January 1, 2019. Year Ended December 31, 2019 2020 2021 (in thousands) Net revenue as reported $ 114,451 $ 185,704 $ 247,767 Aussie Health Assets net revenue 1,759 — — Smash net revenue (1) 42,994 83,132 — Truweo net revenue (2) 7,942 11,155 — Healing Solutions net revenue (3) — 78,646 4,600 Squatty Potty net revenue (4) — 14,919 6,024 Photo Paper Direct net revenue (5) — 13,721 6,334 Net revenue pro forma $ 167,146 $ 387,277 $ 264,725 Operating loss as reported $ (54,333 ) (34,751 ) (34,077 ) Aussie Health Assets operating income 310 — — Smash operating income (1) 4,163 15,221 — Truweo operating income (2) 3,616 5,484 — Healing Solutions operating income (3) — 7,792 382 Squatty Potty operating income (4) — 3,529 1,772 Photo Paper Direct operating income (5) — 3,364 1,152 Operating loss (income) pro forma $ (46,244 ) $ 639 $ (30,771 ) (1) In the accompanying consolidated financial statements for the year-ended December 31, 2020, net revenue, as reported, includes $ 16.1 million of net revenue from this acquisition. For the year-ended December 31, 2020, operating income, as reported, includes $4.5 million of operating income from this acquisition. (2) In the accompanying consolidated financial statements for the year-ended December 31, 2020, net revenue, as reported, includes $1.6 million of net revenue from this acquisition. For the year-ended December 31, 2020, operating income, as reported, includes $0.7 million of operating income from this acquisition. (3) In the accompanying consolidated financial statements (4) In the accompanying consolidated financial statements for the year-ended December 31, 2021, net revenue, as reported includes $ 10.1 million of net revenue from this acquisition. For the year-ended December 31, 2021, operating income, as reported, includes $ 4.2 million of operating income from this acquisition (5) In the accompanying consolidated financial statements for the year-ended December 31, 2021, net revenue, as reported includes $11.6 million of net revenue from this acquisition. For the year-ended December 31, 2021, operating loss, as reported, includes $1.3 million of operating income from this acquisition. |
Summary of Changes in Carrying Value of Estimated Contingent Earn-Out Liabilities | The following table summarizes the changes in the carrying value of estimated contingent earn-out liabilities (in thousands) as of December 31, 2021 (in thousands): December 31, 2021 Smash Assets Healing Solutions Squatty Potty Photo Paper Direct Total Balance—January 1, 2021 $ 22,531 $ — $ — $ — $ 22,531 Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares — 16,558 3,502 911 20,971 Change in fair value of contingent earn-out liabilities (17,291 ) (12,808 ) 481 (911 ) (30,529 ) Payment of contingent earn-out liability (1) — (3,750 ) — — (3,750 ) Balance—December 31, 2021 $ 5,240 $ — $ 3,983 $ — $ 9,223 (1) The $3.8 million payment relating to Healing Solutions earn-out was made with 1.4 million of the Company's common stock in November 2021. This resulted in a settlement charge of $4.2 million due to the difference of fair value of the shares issued on the settlement date versus the fair value of the earn-out on the date of the settlement. |
Aussie Health Assets | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date | The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on their estimated fair values at acquisition date: Total (in thousands) Inventory $ 297 Goodwill 745 Intangible assets 333 Net assets acquired $ 1,375 |
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications | The amounts assigned to goodwill and major intangible asset classifications were as follows: Amount allocated Useful life (in years) (in thousands) Goodwill $ 745 n.a. Trademarks 310 5 Transition services agreement 11 < 1 Non-competition agreement 12 3 Total $ 1,078 |
Truweo Assets | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date | The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date (in thousands): Total Inventory $ 595 Intangible assets 4,011 Goodwill 11,834 Net assets acquired $ 16,440 |
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications | The amounts assigned to goodwill and major intangible asset classifications were as follows (in thousands, except the useful life): Amount Allocated Useful life (in years) Goodwill $ 11,834 n.a. Trademarks 3,900 10 Non-competition agreement 100 <1 Transition services agreement 11 3 Net intangible assets 15,845 |
Smash Assets | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date | The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date (in thousands): Total (in thousands) Goodwill $ 34,739 Trademarks 27,600 Inventory 16,419 Production deposits 3,382 AP and other liabilities (3,088 ) 79,052 |
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications | The amounts assigned to goodwill and major intangible asset classifications were as follows (in thousands, except the useful life): Amount Allocated Useful life (in years) Goodwill $ 34,739 n.a. Trademarks 27,600 10 Net Intangible Assets 62,339 |
Healing Solutions LLC | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date | The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 15,280 1,387,759 shares of Common Stock issued at the Closing 39,454 Seller note for inventory 5,285 Estimated earnout liability 11,273 Total consideration to be paid $ 71,292 |
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications | The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory $ 8,215 Working Capital 202 Trademarks (10 year useful life) 22,900 Goodwill 39,975 Net assets acquired $ 71,292 |
Squatty Potty, LLC | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date | The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 19,040 Transition services payments 8,231 Estimated earnout liability 3,502 Total consideration $ 30,773 |
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications | The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory $ 1,471 Working Capital 230 Trademarks (10 year useful life) 6,500 Customer relationships 5,700 Goodwill (1) 16,872 Net assets acquired $ 30,773 (1) Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Squatty Potty products into the Company’s existing sales channel. |
Photo Paper Direct Ltd. | |
Business Acquisition [Line Items] | |
Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date | The following presents the allocation of purchase price to the assets acquired and liabilities assumed, based on the estimated fair values at acquisition date: Amount allocated (in thousands) Cash purchase price $ 8,293 704,548 shares of common stock issued 11,075 Working capital adjustment 5,338 Estimated earnout liability 911 Total consideration $ 25,617 |
Amounts Assigned to Goodwill and Major Intangibles Asset Classifications | The amounts assigned to goodwill and major intangible asset classifications were as follows: Total (in thousands) Inventory $ 2,846 PP&E 86 Real Property 848 Working Capital 2,144 Trademarks (10 year useful life) 5,400 Goodwill (1) 15,774 Deferred tax liability (2) (1,481 ) Net assets acquired $ 25,617 (1) Estimate based on preliminary purchase price and most recent book values of tangible assets and prior to any deferred tax assets/liabilities. Subject to change based on the actual closing balance sheet and any purchase accounting adjustments. Goodwill is expected to be deductible for tax purposes. The goodwill is attributable to expected synergies resulting from integrating the Photo Paper Direct products into the Company’s existing sales channels. (2) A measurement period adjustment was recorded that resulted in a deferred tax liability of $1.5 million, and corresponding increase in goodwill. |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill and Intangible Assets | The following tables summarize the changes in the Company’s intangible assets as of December 31, 2020 and December 31, 2021 (in thousands): December 1, 2020 December 31, 2020 December 31, 2020 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 745 $ 46,573 $ — $ 47,318 $ — $ — $ 47,318 - December 31, 2020 December 31, 2021 December 31, 2021 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Goodwill $ 47,318 $ 72,623 $ — $ 119,941 $ — $ — $ 119,941 The following tables summarize the changes in the Company’s intangible assets as of December 31, 2020 and December 31, 2021 (in thousands): December 1, 2020 December 31, 2020 December 31, 2020 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Trademarks $ 310 $ 31,500 $ — $ 31,810 $ — $ (442 ) $ 31,368 Non-competition agreement 11 100 — 111 — (19 ) 92 Transition services agreement 12 11 — 23 — (23 ) — Total intangibles $ 333 $ 31,611 $ — $ 31,944 $ — $ (484 ) $ 31,460 December 31, 2020 December 31, 2021 December 31, 2021 Gross Carrying Amount Additions Impairments Gross Carrying Amount Goodwill Impairments Accumulated Amortization Net Book Value Trademarks $ 31,810 $ 34,100 $ — $ 65,910 $ — $ (6,332 ) $ 59,578 Non-competition agreement 111 — — 111 — (54 ) 57 Transition services agreement 23 — — 23 — (23 ) — Customer relations — 5,700 — 5,700 — (380 ) 5,320 Other — 700 — 700 — (700 ) — Total intangibles $ 31,944 $ 40,500 $ — $ 72,444 $ — $ (7,489 ) $ 64,955 |
Summary of Estimated Aggregate Amortization Expense of Intangible Assets | The following table sets forth the estimated aggregate amortization of our in-place intangible assets and favorable intangible assets for the next five years and thereafter (amounts in thousands): 2022 $ 7,228 2023 7,214 2024 7,171 2025 7,130 2026 7,130 Thereafter 29,082 Total $ 64,955 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Organization And Description Of Business [Line Items] | |
Going concern, cash and cash equivalents | $ 30,300,000 |
Going concern, accumulated deficit | 429,000,000 |
Going concern, net loss | 236,000,000 |
Going concern, net cash used in operating activities | 42,000,000 |
Asset Backed Credit Agreement | |
Organization And Description Of Business [Line Items] | |
Additional increase in borrowing amount | 50,000,000 |
Line of credit facility, maximum liquidity requirements during the period | 12,500,000 |
Line of credit facility, maximum liquidity requirements at all other times | $ 15,000,000 |
Line of credit facility, covenant terms | The credit facility contains a financial covenant that requires the Company to maintain a minimum unrestricted cash balance of (a) $12.5 million during the period from February 1st through and including May 31st of each calendar year, and (b) $15.0 million at all other times thereafter. At its election, the Company may elect to comply with an alternative financial covenant that would require the Company to maintain a minimum borrowing availability under the credit facility of $10.0 million at all times. The Company does not anticipate electing the alternative financial covenant over the next twelve months and was in compliance with the minimum liquidity covenant as of the date these consolidated financial statements were issued. |
Line of credit facility, minimum borrowing | $ 10,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021USD ($)CustomerSegment | Dec. 31, 2020USD ($)Customer | Dec. 31, 2019USD ($) | Jan. 01, 2022USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Allowance for doubtful accounts | $ 0 | $ 0 | ||
Income tax benefit recognition, minimum percentage of likelihood being realized | 50.00% | |||
Percentage of fair value in excess of carrying amount | 21.00% | |||
Goodwill impairment description | The Company performed a full step one impairment test at December 31, 2021 and concluded no impairment and that its estimated fair-values exceeded its carrying values by 21% as of the year-ended December 31, 2021. | |||
Goodwill impairment | $ 0 | |||
Number of reportable segments | Segment | 1 | |||
Operating Lease Liability Current Statements Of Financial Position Extensible List | AccruedExpensesAndOtherLiabilitiesCurrent | |||
Subsequent Event | ||||
Significant Accounting Policies [Line Items] | ||||
Right-of-use asset | $ 700,000 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid and other current assets | |||
Operating lease, liability | $ 700,000 | |||
Sales and distribution expenses | ||||
Significant Accounting Policies [Line Items] | ||||
Advertising cost | $ 9,000,000 | 6,300,000 | $ 4,800,000 | |
Shipping and handling cost | 43,400,000 | 20,400,000 | 17,200,000 | |
Other Expense, Net | Maximum | ||||
Significant Accounting Policies [Line Items] | ||||
Net loss from foreign currency transactions | $ (100,000) | $ (100,000) | $ (100,000) | |
Customer Concentration Risk | Revenue Benchmark | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customer accounted | Customer | 0 | 0 | ||
Customer Concentration Risk | Revenue Benchmark | Amazon | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of concentration of credit risk | 93.00% | 88.00% | ||
Customer Concentration Risk | Accounts Receivable | ||||
Significant Accounting Policies [Line Items] | ||||
Number of customer accounted | Customer | 0 | 0 | ||
Customer Concentration Risk | Accounts Receivable | Amazon | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of concentration of credit risk | 42.00% | 68.00% | ||
Other Noncurrent Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Restricted cash deposit associated with credit facility | $ 100,000 | $ 100,000 | ||
Prepaid Expenses and Other Current Assets | ||||
Significant Accounting Policies [Line Items] | ||||
Returned deposit for inventory to pay into an escrow account | 3,300,000 | |||
Prepaid Expenses and Other Current Assets | MidCap Credit Facility | ||||
Significant Accounting Policies [Line Items] | ||||
Restricted cash deposit associated with credit facility | 5,900,000 | |||
Prepaid Expenses and Other Current Assets | Letter of Credit | ||||
Significant Accounting Policies [Line Items] | ||||
Restricted cash deposit associated with credit facility | 2,000,000 | |||
Accrued Liabilities | ||||
Significant Accounting Policies [Line Items] | ||||
Refund liabilities for sales returns | $ 600,000 | $ 500,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computer Equipment and Software | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture, Fixtures and Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Furniture, Fixtures and Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold Improvements and Capital Leases | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, estimated useful life | Shorter of remaining lease term or estimated useful life |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Net Revenue Disaggregated by Sales Channel and Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | $ 247,767 | $ 185,704 | $ 114,451 |
Direct | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 235,817 | 164,218 | 111,358 |
Wholesale | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 11,528 | 20,150 | 1,408 |
Managed PaaS | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 422 | 1,336 | 1,685 |
North America | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 244,017 | 185,648 | 114,261 |
North America | Direct | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 232,067 | 164,162 | 111,168 |
North America | Wholesale | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 11,528 | 20,150 | 1,408 |
North America | Managed PaaS | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 422 | 1,336 | 1,685 |
Other | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 3,750 | 56 | 190 |
Other | Direct | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | $ 3,750 | $ 56 | $ 190 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Net Revenue Disaggregated by Product Categories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | $ 247,767 | $ 185,704 | $ 114,451 |
Product Revenue | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 247,345 | 184,368 | 112,766 |
Product Revenue | Heating, Cooling and Air Quality | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 73,685 | 78,424 | 58,025 |
Product Revenue | Kitchen Appliances | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 43,180 | 29,711 | 26,917 |
Product Revenue | Health and Beauty | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 15,579 | 26,070 | 14,948 |
Product Revenue | Personal Protective Equipment | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 6,073 | 15,488 | |
Product Revenue | Cookware, Kitchen Tools and Gadgets | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 22,933 | 14,868 | 6,898 |
Product Revenue | Home Office | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 12,352 | 7,669 | 172 |
Product Revenue | Housewares | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 33,951 | 3,277 | 3,206 |
Product Revenue | Essential Oils and Related Accessories | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 27,444 | ||
Product Revenue | Other | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | 12,148 | 8,861 | 2,600 |
Managed PaaS | |||
Disaggregation Of Revenue [Line Items] | |||
Total net revenue | $ 422 | $ 1,336 | $ 1,685 |
Inventory - Schedule of Invento
Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory on-hand | $ 48,079 | $ 22,753 |
Inventory in-transit | 14,966 | 8,829 |
Inventory | $ 63,045 | $ 31,582 |
Inventory - Additional Informat
Inventory - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory on-hand held by Amazon | $ 8.4 | $ 5.3 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | ||
Trade accounts receivable | $ 10,478 | $ 5,747 |
Accounts receivable—net | $ 10,478 | $ 5,747 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,813 | $ 760 |
Less: accumulated depreciation and amortization | (559) | (591) |
Property and equipment—net | 1,254 | 169 |
Computer Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 943 | 613 |
Furniture, Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 91 | 91 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 56 | $ 56 |
Building | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 723 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 0.2 | $ 0.3 | $ 0.2 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and restricted cash | $ 38,315 | $ 30,097 | $ 30,789 | $ 20,708 |
Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and restricted cash | $ 38,300 | $ 30,100 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | Cash and Cash Equivalents | ||
Assets: | ||
Assets | $ 30,317 | $ 26,718 |
Level 1 | Restricted Cash | ||
Assets: | ||
Assets | 7,998 | 3,379 |
Level 3 | Estimated Fair Value of Contingent Earn-out Considerations | ||
Liabilities: | ||
Liabilities | $ 9,223 | 22,531 |
Level 3 | Fair Market Value of Warrant Liability | ||
Liabilities: | ||
Liabilities | $ 31,821 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Activity of the Level 3 Liabilities Carried at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 01, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Fair value at issuance of contingent earn-out liability | $ 9,800 | ||
Change in fair value of contingent earn-out liabilities | $ (30,529) | $ 12,731 | |
Level 3 | Estimated Fair Value of Contingent Earn-out Considerations | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liabilities carried at fair value on a recurring basis, Beginning balance | 22,531 | ||
Liabilities carried at fair value on a recurring basis, Ending balance | 9,223 | 22,531 | |
Fair Value, Recurring | Level 3 | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liabilities carried at fair value on a recurring basis, Beginning balance | 31,821 | ||
Modification of warrant liability to equity classification | (58,276) | ||
Change in fair value of warrant liability | 26,455 | ||
Liabilities carried at fair value on a recurring basis, Ending balance | 31,821 | ||
Fair Value, Recurring | Level 3 | Estimated Fair Value of Contingent Earn-out Considerations | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Liabilities carried at fair value on a recurring basis, Beginning balance | 22,531 | ||
Fair value at issuance of contingent earn-out liability | 20,971 | ||
Change in fair value of contingent earn-out liabilities | (30,529) | ||
Payment of contingent earn-out liability | (3,750) | ||
Liabilities carried at fair value on a recurring basis, Ending balance | $ 9,223 | $ 22,531 |
Prepaid and Other Current Ass_3
Prepaid and Other Current Assets - Summary of Prepaid and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense And Other Assets Current [Abstract] | ||
Prepaid inventory | $ 4,137 | $ 4,361 |
Restricted cash | 7,998 | 3,250 |
Prepaid insurance | 2,440 | 1,504 |
Consulting fees | 2,263 | 738 |
Amazon global logistics | 2,865 | |
Other | 1,331 | 1,258 |
Prepaid and other current assets | $ 21,034 | $ 11,111 |
Accrued and Other Current Lia_3
Accrued and Other Current Liabilities - Schedule of Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued compensation costs | $ 162 | $ 293 |
Accrued professional fees and consultants | 331 | 483 |
Accrued logistics costs | 578 | 1,068 |
Product related accruals | 2,984 | 3,221 |
Sales tax payable | 678 | 457 |
Sales return reserve | 590 | 547 |
Accrued fulfillment expense | 744 | 381 |
Accrued insurance | 967 | 952 |
Federal payroll taxes payable | 4,449 | 330 |
Accrued interest payable | 338 | 137 |
All other accruals | 5,800 | 471 |
Accrued and other current liabilities | $ 17,621 | $ 8,340 |
Credit Facility and Term Loan_2
Credit Facility and Term Loans - Additional Information (Details) | Dec. 31, 2021USD ($)$ / shares | Dec. 22, 2021USD ($)$ / sharesshares | Sep. 22, 2021USD ($)TradingDay$ / sharesshares | Aug. 09, 2021USD ($)$ / sharesshares | Jun. 15, 2021 | Apr. 08, 2021USD ($)shares | Feb. 02, 2021USD ($) | Dec. 01, 2020USD ($)Installment | Nov. 23, 2018USD ($) | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 23, 2021shares | Aug. 11, 2021USD ($) |
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | $ 138,859,000 | $ 2,037,000 | |||||||||||||
Interest expense of credit facilities | 400,000 | 1,900,000 | |||||||||||||
Expense related to debt issuance costs | 100,000 | 700,000 | |||||||||||||
Interest expense | 13,250,000 | 5,038,000 | $ 4,532,000 | ||||||||||||
Common stock shares issued | shares | 2,666,667 | ||||||||||||||
Accounts receivable, net | $ 65,000,000 | ||||||||||||||
Cash and cash equivalents | $ 30,317,000 | $ 30,317,000 | $ 26,718,000 | $ 30,353,000 | |||||||||||
Warrants exercise period after resale | 60 days | ||||||||||||||
Common stock, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||
Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Increase minimum cash threshold covenant | 15,000,000 | ||||||||||||||
Cash and cash equivalents | 30,000,000 | ||||||||||||||
Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Increase minimum cash threshold covenant | 30,000,000 | ||||||||||||||
Restricted Stock | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | $ 4,100,000 | ||||||||||||||
February Warrant, Penny Warrant and Additional Warrant | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Reclassification from a liability to component of equity | 80,000,000 | ||||||||||||||
Reclassification from a component of equity to liability | 21,300,000 | ||||||||||||||
Private Placement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gross proceeds received | $ 14,800,000 | ||||||||||||||
Horizon Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility maximum borrowing amount | $ 15,000,000 | ||||||||||||||
Loss on extinguishment | $ 1,065,000 | ||||||||||||||
Debt instrument maturity month and year | 2023-01 | ||||||||||||||
Repaying of term loan | $ 15,000,000 | 15,990,000 | |||||||||||||
Interest expense | 0 | 1,400,000 | |||||||||||||
Amortization of debt issuance costs | 0 | 600,000 | |||||||||||||
High Trail Loan December 2020 Note | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Gross proceeds received | 38,000,000 | ||||||||||||||
Aggregate principal amount | $ 43,000,000 | ||||||||||||||
Number of repayment installments | Installment | 24 | ||||||||||||||
Line of credit facility, frequency of payments | monthly | ||||||||||||||
Cash payments | $ 1,800,000 | ||||||||||||||
Line of credit facility covenant minimum liquidity requirement in unrestricted cash on hand | 10,000,000 | ||||||||||||||
High Trail April2021 Note | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | 28,200,000 | ||||||||||||||
Repaying of term loan | $ 10,139,000 | ||||||||||||||
Event of default description | On August 9, 2021, pursuant to those certain Letter Agreements entered into between the Company and High Trail with respect to each of the April 2021 Notes (collectively, the “August Letter Agreements”), High Trail notified the Company that High Trail declared an event of default under the April 2021 Notes as a result of the Company’s Adjusted EBITDA (as defined in the April 2021 Notes) not being equal to at least $12 million for the 12 month period ended June 30, 2021 and further notified the Company that High Trail immediately accelerated a total of $18.7 million of the principal amount of the April 2021 Notes, requiring the Company to immediately pay $21.5 million (such amount equal to 115% of the principal amount that was accelerated, as required under the terms of the April 2021 Notes, plus $0.3 million of accrued but unpaid interest on the principal amount that was accelerated) (the “Current Event of Default Acceleration Amount”). | ||||||||||||||
Accelerated principal amount | 18,700,000 | ||||||||||||||
Debt instrument redemption amount | $ 21,500,000 | ||||||||||||||
Debt instrument redemption price percentage | 115.00% | ||||||||||||||
Accrued, Unpaid interest | $ 300,000 | ||||||||||||||
Base percentage used to calculate current event of default acceleration | 0.80 | ||||||||||||||
Description of current event of default acceleration payment | Pursuant to the August Letter Agreements, the Company agreed, among other things, to pay the Current Event of Default Acceleration Amount in cash by August 9, 2021 and that any portion not paid in cash would be paid in shares of the Company’s common stock under the terms of the April 2021 Notes, with the number of shares issuable equal to the unpaid Current Event of Default Acceleration Amount divided by 80% of the lesser of (i) the Daily VWAP (as defined in the April 2021 Notes) on August 9, 2021 and (ii) the average of the lowest two (2) Daily VWAPs during the ten (10) day VWAP trading period ending on August 9, 2021. | ||||||||||||||
High Trail April2021 Note | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument default amount | $ 12,000,000 | ||||||||||||||
High Trail | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | $ 2,500,000 | $ 2,500,000 | |||||||||||||
Repaying of term loan | 25,000,000 | ||||||||||||||
Maturity date | Apr. 1, 2023 | ||||||||||||||
Accelerated principal amount | $ 66,300,000 | ||||||||||||||
Debt instrument redemption amount | $ 76,900,000 | ||||||||||||||
Debt instrument redemption price percentage | 115.00% | ||||||||||||||
Accrued, Unpaid interest | $ 300,000 | ||||||||||||||
Base percentage used to calculate current event of default acceleration | 0.80 | ||||||||||||||
Warrant exercisable to common stock percentage | 200.00% | ||||||||||||||
Warrants consecutive trading days | TradingDay | 20 | ||||||||||||||
Warrants to purchase shares, exercise price | $ / shares | $ 0.01 | ||||||||||||||
Common stock issued subject to satisfy obligation to repay acceleration amount | shares | 3,474,814 | 5,838,096 | |||||||||||||
Notes extinguished in exchange for debt repayment | $ 25,000,000 | ||||||||||||||
High Trail | High Trail Debt Repayment | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | 107,000,000 | ||||||||||||||
High Trail | High Trail April 2021 Notes Repayment | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | 28,200,000 | ||||||||||||||
High Trail | High Trails Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Available balance of credit facility | 25,000,000 | 25,000,000 | |||||||||||||
High Trail | Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | $ 1,500,000 | ||||||||||||||
High Trail | Minimum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Increase minimum cash threshold covenant | $ 15,000,000 | ||||||||||||||
Beneficial ownership limit, percentage | 9.99% | ||||||||||||||
High Trail | Maximum | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Increase minimum cash threshold covenant | $ 30,000,000 | ||||||||||||||
Securities Purchase Agreement | High Trail February 2021 Note | 0% Coupon Senior Secured Promissory Note | Investor | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 16,500,000 | ||||||||||||||
Interest rate | 0.00% | ||||||||||||||
Maturity date | Feb. 1, 2023 | ||||||||||||||
Securities Purchase Agreement | High Trail Loans | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Cash payments | $ 57,700,000 | ||||||||||||||
Securities Purchase Agreement | High Trail Loans | Common Stock | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Warrants to purchase shares | shares | 2,259,166 | ||||||||||||||
Securities Purchase Agreement | High Trail Loans | Senior Secured Promissory Notes | Private Placement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 110,000,000 | ||||||||||||||
Interest rate | 8.00% | ||||||||||||||
Maturity date | Apr. 8, 2024 | ||||||||||||||
April Letter Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Common stock shares issued | shares | 130,000 | ||||||||||||||
SPA Amendment | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Warrant amendment description | The Warrant Amendments amended the February Warrant, the Penny Warrant and the Additional Warrant to amend the definition of “Black Scholes Value” in each warrant to provide that the expected volatility used in the Black Scholes Value shall equal 100% instead of the greater of 100% and the 100-day volatility obtained from the HVT function on Bloomberg (determined utilizing a 365-day annualization factor) as of the trading day immediately following the public announcement of a Change of Control (as defined in each of the warrants), or, if the Change of Control is not publicly announced, the date the Change of Control is consummated. | ||||||||||||||
Letter Agreements | High Trail April 2021 Notes | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Base percentage used to calculate current event of default acceleration | 0.80 | ||||||||||||||
Payment in cash of current event of default acceleration amount | $ 10,100,000 | ||||||||||||||
Payment in shares of current event of default acceleration amount | $ 11,700,000 | $ 11,700,000 | |||||||||||||
Payment in shares of current event of default acceleration shares | shares | 2,841,251 | ||||||||||||||
Share price | $ / shares | $ 4.1007 | ||||||||||||||
London Interbank Offered Rate (LIBOR) | Horizon Term Loan | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 9.90% | ||||||||||||||
Description of variable rate basis | one-month LIBOR | ||||||||||||||
MidCap Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Credit facility maximum borrowing amount | $ 40,000,000 | 30,000,000 | $ 25,000,000 | ||||||||||||
Additional increase in borrowing amount | 50,000,000 | $ 50,000,000 | |||||||||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.50% | 0.50% | |||||||||||||
Debt offset against and expense over the term | 3 years | 3 years | |||||||||||||
Aggregate principal amount | $ 110,000,000 | ||||||||||||||
Line of credit facility, minimum liquidity financial covenant requirement in cash on hand | 6,500,000 | ||||||||||||||
Line of credit, outstanding | $ 0 | $ 0 | 12,900,000 | ||||||||||||
Available balance of credit facility | $ 1,400,000 | ||||||||||||||
Loss on extinguishment | $ 1,500,000 | ||||||||||||||
Gross proceeds received | $ 27,600,000 | ||||||||||||||
Warrants to purchase shares | shares | 200,000 | ||||||||||||||
Warrants to purchase shares, exercise price | $ / shares | $ 4.70 | $ 4.70 | |||||||||||||
Common stock, par value | $ / shares | $ 0.0001 | ||||||||||||||
Credit facility, interest rate per annum | 5.50% | ||||||||||||||
Line of credit facility, maximum liquidity requirements during the period | $ 12,500,000 | ||||||||||||||
Line of credit facility, maximum liquidity requirements at all other times | $ 15,000,000 | ||||||||||||||
Line of credit facility, covenant terms | The Credit Agreement minimum liquidity covenant requires that Midcap shall not permit the credit party liquidity at any time to be less than (a) during the period commencing on February 1st through and including May 31st of each calendar year, $12.5 million and (b) at all other times, $15.0 million. | ||||||||||||||
Warrants term | 10 years | ||||||||||||||
MidCap Credit Facility | Senior Secured Note | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Aggregate principal amount | $ 43,000,000 | ||||||||||||||
MidCap Credit Facility | London Interbank Offered Rate (LIBOR) | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Debt instrument, basis spread on variable rate | 5.75% | ||||||||||||||
Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Loss on extinguishment | $ 1,532,000 | ||||||||||||||
Revolving Credit Facility | Terminated Credit Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Prepayment fee, percentage | 4.30% |
Credit Facility and Term Loan_3
Credit Facility and Term Loans - Schedule of Credit Facility and Term Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Less-current portion | $ (21,600) | |
Term loan-non current portion | 36,483 | |
Total MidCap Credit Facility – December 2021 | $ 32,845 | 12,190 |
MidCap Credit Facility | ||
Debt Instrument [Line Items] | ||
MidCap Credit Facility – December 2021 | 34,119 | |
Less: deferred debt issuance costs | (691) | |
Less: discount associated with issuance of warrants | (583) | |
Total MidCap Credit Facility – December 2021 | $ 32,845 | |
High Trail Loan December 2020 Note | ||
Debt Instrument [Line Items] | ||
High Trail Note | 43,000 | |
Less: deferred debt issuance costs | (2,207) | |
Less: discount associated with issuance of warrants | (9,839) | |
Less: discount associated with original issuance of loan | (4,692) | |
High Trail warrant | 31,821 | |
Total December 2020 Note | 58,083 | |
Less-current portion | (21,600) | |
Term loan-non current portion | $ 36,483 |
Credit Facility and Term Loan_4
Credit Facility and Term Loans - Schedule of Interest Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 13,250 | $ 5,038 | $ 4,532 |
Interest income | (595) | (59) | (146) |
Total interest expense, net | $ 12,655 | $ 4,979 | $ 4,386 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 10, 2021 | Aug. 26, 2020 | Jun. 14, 2019 | Dec. 31, 2021 |
Stockholders Equity [Line Items] | ||||
Common stock, voting rights | The Company has one class of common shares issued and available. Each share of common stock has the right to one vote per share | |||
Initial Public Offering | ||||
Stockholders Equity [Line Items] | ||||
Issuance of common stock, shares | 3,600,000 | |||
Shares issued, price per share | $ 10 | |||
Net proceeds from sale of common stock | $ 29.4 | |||
Follow-on Public Offering | ||||
Stockholders Equity [Line Items] | ||||
Issuance of common stock, shares | 3,860,710 | |||
Shares issued, price per share | $ 7 | |||
Net proceeds from sale of common stock | $ 23.4 | |||
Underwriting discounts and commissions | 2.2 | |||
Other offering expenses | $ 1.4 | |||
Private Placement | ||||
Stockholders Equity [Line Items] | ||||
Sale of stock, number of shares issued in transaction | 2,666,667 | |||
Sale of stock, price per share | $ 15 | |||
Sale of stock, proceeds net of offering costs | $ 36.7 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options exercisable period | 10 years |
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period | 2 months 1 day |
Stock options granted | 0 |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total unrecognized compensation expense related to unvested options | $ | $ 100,000 |
Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Total unrecognized compensation expense related to unvested options, expects to recognize over estimated weighted average period | 1 year 1 month 28 days |
Total unrecognized compensation expense related to unvested shares of restricted common stock | $ | $ 20,100,000 |
Share-based Compensation Award, Tranche One | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options vesting period | 4 years |
Share-based Compensation Award, Tranche One | Vesting on First Anniversary | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options vesting percentage | 25.00% |
Share-based Compensation Award, Tranche One | Vesting Over Succeeding 36 Months | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options vesting period | 36 months |
Options vesting percentage | 75.00% |
Share-based Compensation Award, Tranche Two | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options vesting period | 3 years |
Share-based Compensation Award, Tranche Two | Vesting on First Anniversary | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options vesting percentage | 33.33% |
Share-based Compensation Award, Tranche Two | Vesting Over Succeeding 24 Months | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options vesting period | 24 months |
Options vesting percentage | 66.66% |
Aterian 2014 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares reserved for future issuance | 60,509 |
2018 Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares reserved for future issuance | 347,313 |
2019 Equity Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares reserved for future issuance | 0 |
2019 Equity Plan | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Percentage of restricted shares issued and outstanding | 70.00% |
2019 Equity Plan | Share-based Compensation Award, Tranche One | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting date | Mar. 13, 2020 |
2019 Equity Plan | Share-based Compensation Award, Tranche Two | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting date | Dec. 15, 2020 |
2019 Equity Plan | Share-based Compensation Award, Tranche Three, Vesting Date 1 | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting date | Jan. 18, 2021 |
2019 Equity Plan | Share-based Compensation Award, Tranche Three, Vesting Date 2 | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting date | Mar. 10, 2021 |
2019 Equity Plan | Share-based Compensation Award, Tranche Four, Vesting Date 1 | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting date | Jul. 1, 2021 |
2019 Equity Plan | Share-based Compensation Award, Tranche Four, Vesting Date 2 | Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting date | Dec. 14, 2021 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Options Outstanding, Number of Options, Shares, Beginning Balance | 1,570,728 | |
Options Outstanding, Number of Options, Granted, Shares | 0 | |
Options Outstanding, Number of Options, Exercised, Shares | (1,011,422) | |
Options Outstanding, Number of Options, Cancelled, Shares | (36,401) | |
Options Outstanding, Number of Options, Shares, Ending Balance | 522,905 | 1,570,728 |
Options Outstanding, Number of Options Exercisable, Shares, as of December 31, 2021 | 520,256 | |
Options Outstanding, Number of Options, Vested and expected to vest, Shares as of December 31, 2021 | 522,905 | |
Options Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 9.09 | |
Options Outstanding, Weighted Average Exercise Price, Exercised | 9 | |
Options Outstanding, Weighted Average Exercise Price, Cancelled | 9.17 | |
Options Outstanding, Weighted Average Exercise Price, Ending Balance | 9.25 | $ 9.09 |
Options Outstanding, Weighted Average Exercise Price, Exercisable as of December 31, 2021 | 9.25 | |
Options Outstanding, Weighted Average Exercise Price, Vested and expected to vest as of December 31, 2021 | $ 9.25 | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years) | 6 years 9 months 7 days | 7 years 8 months 15 days |
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Exercisable as of December 31, 2021 | 6 years 9 months 7 days | |
Options Outstanding, Weighted Average Remaining Contractual Life (Years), Vested and expected to vest as of December 31, 2021 | 6 years 9 months 7 days | |
Options Outstanding, Aggregate Intrinsic Value, Beginning Balance | $ 12,756 | |
Options Outstanding, Aggregate Intrinsic Value, Ending Balance | 25,971 | $ 12,756 |
Options Outstanding, Aggregate Intrinsic Value, Exercisable as of December 31, 2021 | 25,971 | |
Options Outstanding, Aggregate Intrinsic Value, Vested and expected to vest as of December 31, 2021 | $ 25,971 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Nonvested at January 1, 2021 | shares | 3,259,389 |
Shares, Granted | shares | 2,028,547 |
Shares, Vested | shares | (2,798,872) |
Shares, Forfeited | shares | (382,884) |
Shares, Nonvested at December 31, 2021 | shares | 2,106,180 |
Weighted Average Grant-Date Fair Value, Nonvested at January 1, 2020 | $ / shares | $ 13.51 |
Weighted Average Grant-Date Fair Value, Granted | $ / shares | 15.56 |
Weighted Average Grant-Date Fair Value, Vested | $ / shares | 13.56 |
Weighted Average Grant-Date Fair Value, Forfeited | $ / shares | 14.59 |
Weighted Average Grant-Date Fair Value, Nonvested at December 31, 2021 | $ / shares | $ 14.94 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Total Stock-based Compensation Expense by Function (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 28,987 | $ 22,716 | $ 34,681 |
Sales and Distribution Expenses | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 6,809 | 2,533 | 7,358 |
Research and Development Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 5,339 | 3,965 | 5,711 |
General and Administrative Expense | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 16,839 | $ 16,218 | $ 21,612 |
Commitment and Contingencies -
Commitment and Contingencies - Additional Information (Details) $ in Thousands | Mar. 10, 2022USD ($) | Jun. 10, 2021USD ($)shares | May 02, 2021USD ($)Installment | Dec. 31, 2021USD ($) | Nov. 30, 2021USD ($) | Sep. 30, 2021USD ($) | May 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Commitment And Contingencies [Line Items] | ||||||||
Inventory purchased | $ 32,300 | $ 55,000 | ||||||
Sales tax payable current | 678 | $ 457 | ||||||
Settlement Agreement | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Agreement date | May 2, 2021 | |||||||
Payment to suppliers | $ 3,000 | |||||||
Number of installments | Installment | 3 | |||||||
Settlement Agreement | Prepaid Expenses and Other Current Assets | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Prepaid asset | 4,100 | |||||||
Securities Class Action | Subsequent Event | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Litigation settlement | $ 1,300 | |||||||
Securities Purchase Agreement | Sabby Volatility Warrant Master Fund Ltd | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction | shares | 400,000 | |||||||
Sale of stock, proceeds net of offering costs | $ 6,000 | |||||||
First Payment | Settlement Agreement | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Payment to suppliers | $ 1,000 | |||||||
Settlement received | $ 1,000 | |||||||
Second Payment | Settlement Agreement | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Payment to suppliers | $ 1,000 | |||||||
Third Payment | Settlement Agreement | ||||||||
Commitment And Contingencies [Line Items] | ||||||||
Payment to suppliers | $ 1,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (233,846) | $ (62,985) | $ (58,718) |
International | (1,646) | (93) | (42) |
LOSS BEFORE INCOME TAXES | $ (235,492) | $ (63,078) | $ (58,760) |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 72 | 28 | 21 |
Foreign | 265 | 0 | 8 |
Total current | 337 | 28 | 29 |
Deferred: | |||
Federal | 253 | 0 | 0 |
State | 32 | 20 | 0 |
Foreign | (90) | 0 | 0 |
Total deferred | 195 | 20 | 0 |
Income tax provision | $ 532 | $ 48 | $ 29 |
Income Taxes - Schedule of Fede
Income Taxes - Schedule of Federal Statutory Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at statutory rates | $ (49,454) | $ (13,246) | $ (12,339) |
Permanent differences | 3 | 6,434 | 325 |
Debt Extinguishment | 33,746 | ||
Warrant Liabilities | 11,066 | ||
Stock Compensation | 10,602 | ||
Change in FV contingent consideration | (3,143) | ||
Foreign rate differential | (44) | (4) | (4) |
State income taxes, net of federal tax benefit | (6,424) | (2,056) | (2,034) |
Other | 264 | 313 | 45 |
Prior Year True-Up Adjustments | (5,577) | ||
Valuation allowance | 9,493 | 8,607 | 14,036 |
Income tax provision | $ 532 | $ 48 | $ 29 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes Disclosure [Line Items] | ||
Effective tax rate | 0.23% | 0.08% |
Operating loss carry forwards | $ 152 | $ 87 |
Operating loss carry forwards expiration year | 2034 | 2034 |
Description of ownership limitations | The Company’s ability to utilize its NOL carryforwards may be limited pursuant to Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), if the Company has had a change in ownership of more than 50% of its capital stock over a three-year period pursuant to Section 382 of the Code. These complex changes of ownership rules generally focus on ownership changes involving stockholders owning directly or indirectly 5% or more of a company’s stock, including certain public “groups” of stockholders as set forth by Section 382 of the Code, including those arising from new stock issuances and other equity transactions. | |
Other Current Liabilities | ||
Income Taxes Disclosure [Line Items] | ||
Payroll related credits | $ 1.3 | |
State and Local Jurisdiction | ||
Income Taxes Disclosure [Line Items] | ||
Operating loss carry forwards | $ 79.5 | $ 45.8 |
State and Local Jurisdiction | Earliest Tax Year 2025 | ||
Income Taxes Disclosure [Line Items] | ||
Operating loss carry forwards expiration year | 2025 | 2025 |
State and Local Jurisdiction | Latest Tax Year 2035 | ||
Income Taxes Disclosure [Line Items] | ||
Operating loss carry forwards expiration year | 2035 | 2035 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Sales returns reserve | $ 130 | $ 133 |
Net operating loss carryforwards | 36,250 | 21,070 |
Stock options | 3,592 | 12,336 |
Deferred revenue | 15 | 14 |
Interest expense limitation | 10,151 | 2,392 |
Intangibles | 0 | 58 |
Other | 2,364 | 1,917 |
Less: valuation allowances | (47,316) | (37,823) |
Net deferred tax assets | 5,186 | 97 |
Deferred tax liabilities: | ||
Fixed assets | (18) | (14) |
Goodwill | (1,528) | (103) |
Prepaid Expenses | (3,562) | |
Intangibles | (560) | |
Contingent Consideration | (1,084) | |
Other | (130) | |
Net deferred tax liabilities | (6,882) | (117) |
Net deferred tax assets (liabilities) | $ (1,696) | $ (20) |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Nov. 01, 2018 |
Voting Agreement | |
Related Party Transaction [Line Items] | |
Percentage of voting power of capital stock outstanding | 19.90% |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net loss | $ (236,024) | $ (63,126) | $ (58,789) |
Weighted-average number of shares used in computing net loss per share, basic and diluted | 35,379,005 | 17,167,999 | 13,516,844 |
Net loss per share, basic and diluted | $ (6.67) | $ (3.68) | $ (4.35) |
Anti-dilutive shares excluded from computation of net loss per share (in shares) | 3,027,361 | 4,975,759 | 3,595,078 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) | May 06, 2021USD ($) | May 05, 2021USD ($)shares | Feb. 02, 2021USD ($)shares | Dec. 01, 2020USD ($)$ / sharesshares | Aug. 26, 2020USD ($) | Sep. 10, 2019USD ($) | Nov. 30, 2021USD ($) | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2022USD ($) |
Business Acquisition [Line Items] | ||||||||||
Business acquisition, earn-out payments | $ 3,800,000 | $ 3,750,000 | ||||||||
Common stock issued | 5,000 | $ 3,000 | ||||||||
Acquisition date, initial fair value anoint of earn-out payment | $ 9,800,000 | |||||||||
Change in fair value of contingent earn-out liabilities | (30,529,000) | 12,731,000 | ||||||||
Business combination, contingent consideration earn out amount | 9,223,000 | 22,531,000 | ||||||||
Aussie Health Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration | $ 1,300,000 | |||||||||
Total consideration paid by cash | 1,100,000 | |||||||||
Working capital paid, related to inventory purchased within sixty days of closing | $ 100,000 | |||||||||
Maximum period after closing date to pay working capital related to inventory purchased | 60 days | |||||||||
Payment in cash | $ 1,100,000 | |||||||||
Business acquisition, inventory acquired | 297,000 | |||||||||
Aussie Health Assets | Promissory Note | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration paid in form of unsecured promissory note | $ 200,000 | |||||||||
Accrued interest rate per annum | 8.00% | |||||||||
Maturity date | Jun. 10, 2020 | |||||||||
Truweo Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration | $ 16,400,000 | |||||||||
Total consideration paid by cash | $ 14,000,000 | |||||||||
Date of completion of Acquisition | Aug. 26, 2020 | |||||||||
Payment in cash | $ 14,000,000 | |||||||||
Business acquisition, inventory acquired | 595,000 | |||||||||
Truweo Assets | Promissory Note | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration paid in form of unsecured promissory note | $ 2,400,000 | |||||||||
Accrued interest rate per annum | 8.00% | |||||||||
Maturity date | Aug. 22, 2022 | |||||||||
Principal amount and accrued interest payments | $ 600,000 | |||||||||
First principal amount and accrued interest payments due date | Nov. 30, 2021 | |||||||||
Second principal amount and accrued interest payments due date | Feb. 28, 2022 | |||||||||
Third principal amount and accrued interest payments due date | May 31, 2022 | |||||||||
Smash Assets | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration | $ 25,000,000 | |||||||||
Date of completion of Acquisition | Dec. 1, 2020 | |||||||||
Business combination, consideration transferred, common stock issued | shares | 4,220,000 | |||||||||
Closing stock price | $ / shares | $ 6.89 | |||||||||
Value of certain inventory | $ 15,600,000 | |||||||||
Business acquisition, inventory acquired | $ 16,419,000 | |||||||||
Business combination, contingent consideration earn out amount | $ 5,240,000 | 22,531,000 | ||||||||
Smash Assets | Sellers Brokers | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 164,000 | |||||||||
Smash Assets | Year One Earn-Out | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination contingent consideration contribution margin ratio | 1.67 | |||||||||
Business combination contingent consideration earn out margin | $ / shares | $ 1 | |||||||||
Business combination, contingent consideration earn out amount, minimum | $ 15,500,000 | |||||||||
Business combination, contingent consideration earn out amount, maximum | 18,500,000 | |||||||||
Business combination contingent consideration arrangements earn out maximum | 5,000,000 | |||||||||
Business combination contingent consideration earnout fair value | 0 | 22,500,000 | ||||||||
Change in fair value of contingent earn-out liabilities | $ 12,700,000 | |||||||||
Smash Assets | Year Two Earn-Out | Forecast | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, contingent consideration earn out amount, maximum | $ 15,500,000 | |||||||||
Business combination contingent consideration earn out generated amount | 500,000 | |||||||||
Business combination contingent consideration subject to cap | 27,500,000 | |||||||||
Business combination contingent consideration entitled to receive amount in cash equal to shares | 100,000 | |||||||||
Business combination contingent consideration earnout fair value | $ 5,200,000 | |||||||||
Smash Assets | Sellers Brokers | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 164,000 | |||||||||
Healing Solutions LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration paid by cash | $ 15,300,000 | |||||||||
Business combination, consideration transferred, common stock issued | shares | 1,387,759 | |||||||||
Payment in cash | $ 15,300,000 | |||||||||
Withheld of cash purchase price to serve collateral for sellers payment | $ 2,000,000 | |||||||||
Withheld of cash purchase price payment period | within 60 days of the Closing Date | |||||||||
Business combination, acquired receivables, description | The shares will be issued to Healing Solutions following the final determination of inventory values pursuant to the terms of the Asset Purchase Agreement, which determination is expected to occur approximately nine to ten months following the Closing Date and such shares will be subject to vesting restrictions which will lapse on the date that is the one-year anniversary after the Closing Date. | |||||||||
Business acquisition, inventory acquired | $ 5,285,000 | |||||||||
Business acquisition, earn-out payments | 3,750,000 | |||||||||
Cash purchase price | 15,280,000 | |||||||||
Acquisition date, initial fair value anoint of earn-out payment | $ 16,500,000 | |||||||||
Business combination contingent consideration earnout fair value | $ 1,400,000 | |||||||||
Change in fair value of contingent earn-out liabilities | $ 0 | |||||||||
Healing Solutions LLC | After 15 Months Following Closing Date | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 0 | |||||||||
Healing Solutions LLC | Nine Months Following Closing Date | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 528,670 | |||||||||
Healing Solutions LLC | After Nine Months But Before 12 Months Following Closing Date | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 396,502 | |||||||||
Healing Solutions LLC | After12 Months But Before 15 Months Following Closing Date | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 264,335 | |||||||||
Healing Solutions LLC | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 1,387,759 | |||||||||
Entitled to receive number of shares of common stock | shares | 170,042 | |||||||||
Healing Solutions LLC | Common Stock | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Entitled to receive number of shares of common stock | shares | 280,000 | |||||||||
Healing Solutions LLC | Common Stock | After 15 Months Following Closing Date | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Entitled to receive number of shares of common stock | shares | 528,670 | |||||||||
Squatty Potty, LLC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration paid by cash | $ 19,000,000 | |||||||||
Payment in cash | 19,000,000 | |||||||||
Business acquisition, inventory acquired | 1,100,000 | |||||||||
Business acquisition, earn-out payments | $ 4,000,000 | |||||||||
Business acquisition, payment for transition services | 8,000,000 | |||||||||
Cash purchase price | 19,040,000 | |||||||||
Acquisition date, initial fair value anoint of earn-out payment | $ 3,500,000 | |||||||||
Business combination contingent consideration earnout fair value | 4,000,000 | |||||||||
Change in fair value of contingent earn-out liabilities | 500,000 | |||||||||
Business combination, contingent consideration earn out amount | 3,983,000 | |||||||||
Squatty Potty, LLC | Event Occurs in 12 Months Ending 12/31/2021 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, contingent consideration earn out amount, maximum | 3,900,000 | |||||||||
Squatty Potty, LLC | Event Occurs in Six Months Following Closing Date | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, contingent consideration earn out amount | 3,900,000 | |||||||||
Photo Paper Direct Ltd. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total consideration paid by cash | $ 8,300,000 | |||||||||
Business combination, consideration transferred, common stock issued | shares | 704,548 | |||||||||
Payment in cash | $ 8,300,000 | |||||||||
Business acquisition, earn-out payments | 6,000,000 | |||||||||
Cash purchase price | 8,293,000 | |||||||||
Common stock issued | 2,000,000 | |||||||||
Acquisition date, initial fair value anoint of earn-out payment | $ 900,000 | |||||||||
Business combination contingent consideration earnout fair value | 0 | |||||||||
Change in fair value of contingent earn-out liabilities | $ 900,000 | |||||||||
Photo Paper Direct Ltd. | Inventory and Other Working Capital Assets, Including Cash on Hand | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, assets acquired | 5,400,000 | |||||||||
Cash purchase price | $ 3,000,000 | |||||||||
Photo Paper Direct Ltd. | Common Stock | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business combination, consideration transferred, common stock issued | shares | 704,500 |
Acquisition - Allocation of Pur
Acquisition - Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | May 05, 2021 | Feb. 02, 2021 | Dec. 31, 2020 | Dec. 01, 2020 | Aug. 26, 2020 | Sep. 10, 2019 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 119,941 | $ 47,318 | |||||
Aussie Health Assets | |||||||
Business Acquisition [Line Items] | |||||||
Inventory | $ 297 | ||||||
Goodwill | 745 | ||||||
Intangible assets | 333 | ||||||
Net assets acquired | 1,375 | ||||||
Total consideration to be paid | 1,375 | ||||||
Aussie Health Assets | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 310 | ||||||
Truweo Assets | |||||||
Business Acquisition [Line Items] | |||||||
Inventory | $ 595 | ||||||
Goodwill | 11,834 | ||||||
Intangible assets | 4,011 | ||||||
Net assets acquired | 16,440 | ||||||
Total consideration to be paid | 16,440 | ||||||
Truweo Assets | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 3,900 | ||||||
Smash Assets | |||||||
Business Acquisition [Line Items] | |||||||
Inventory | $ 16,419 | ||||||
Goodwill | 34,739 | ||||||
Production deposits | 3,382 | ||||||
AP and other liabilities | (3,088) | ||||||
Preliminary allocation of purchase price to assets acquired and liabilities assumed | 79,052 | ||||||
Smash Assets | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 27,600 | ||||||
Healing Solutions LLC | |||||||
Business Acquisition [Line Items] | |||||||
Inventory | $ 5,285 | ||||||
Net assets acquired | 71,292 | ||||||
Cash purchase price | 15,280 | ||||||
Shares of common stock issued | 39,454 | ||||||
Estimated earnout liability | 11,273 | ||||||
Total consideration to be paid | 71,292 | ||||||
Healing Solutions LLC | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 22,900 | ||||||
Squatty Potty, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Inventory | $ 1,100 | ||||||
Goodwill | 16,872 | ||||||
Net assets acquired | 30,773 | ||||||
Cash purchase price | 19,040 | ||||||
Estimated earnout liability | 3,502 | ||||||
Total consideration to be paid | 30,773 | ||||||
Transition services payments | 8,231 | ||||||
Squatty Potty, LLC | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | 6,500 | ||||||
Photo Paper Direct Ltd. | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | 15,774 | ||||||
Deferred tax liability | (1,481) | ||||||
Net assets acquired | 25,617 | ||||||
Cash purchase price | 8,293 | ||||||
Shares of common stock issued | 11,075 | ||||||
Estimated earnout liability | 911 | ||||||
Total consideration to be paid | 25,617 | ||||||
Working capital adjustment | 5,338 | ||||||
Photo Paper Direct Ltd. | Trademarks | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 5,400 |
Acquisition - Amounts Assigned
Acquisition - Amounts Assigned to Goodwill and Major Intangibles Asset Classifications (Details) - USD ($) $ in Thousands | May 06, 2021 | Feb. 02, 2021 | Dec. 01, 2020 | Aug. 26, 2020 | Sep. 10, 2019 | Dec. 31, 2021 | May 05, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 119,941 | $ 47,318 | ||||||
Aussie Health Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 745 | |||||||
Intangible assets | 333 | |||||||
Net intangible assets | 1,078 | |||||||
Net assets acquired | 1,375 | |||||||
Truweo Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 11,834 | |||||||
Intangible assets | 4,011 | |||||||
Net intangible assets | 15,845 | |||||||
Net assets acquired | 16,440 | |||||||
Smash Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 34,739 | |||||||
Net intangible assets | 62,339 | |||||||
Healing Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Net assets acquired | $ 71,292 | |||||||
Squatty Potty, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 16,872 | |||||||
Net assets acquired | 30,773 | |||||||
Photo Paper Direct Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | 15,774 | |||||||
Net assets acquired | 25,617 | |||||||
Deferred tax liability | (1,481) | |||||||
Trademarks | Aussie Health Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 310 | |||||||
Useful life (in years) | 5 years | |||||||
Trademarks | Truweo Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 3,900 | |||||||
Useful life (in years) | 10 years | |||||||
Trademarks | Smash Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 27,600 | |||||||
Useful life (in years) | 10 years | |||||||
Trademarks | Healing Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 22,900 | |||||||
Useful life (in years) | 10 years | |||||||
Trademarks | Squatty Potty, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 6,500 | |||||||
Useful life (in years) | 10 years | |||||||
Trademarks | Photo Paper Direct Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 5,400 | |||||||
Useful life (in years) | 10 years | |||||||
Non-Competition Agreement | Aussie Health Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 12 | |||||||
Useful life (in years) | 3 years | |||||||
Non-Competition Agreement | Truweo Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 100 | |||||||
Non-Competition Agreement | Truweo Assets | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life (in years) | 1 year | |||||||
Transition Services Agreement | Aussie Health Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 11 | |||||||
Transition Services Agreement | Aussie Health Assets | Maximum | ||||||||
Business Acquisition [Line Items] | ||||||||
Useful life (in years) | 1 year | |||||||
Transition Services Agreement | Truweo Assets | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 11 | |||||||
Useful life (in years) | 3 years | |||||||
Inventory | Healing Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 8,215 | |||||||
Inventory | Squatty Potty, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 1,471 | |||||||
Inventory | Photo Paper Direct Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 2,846 | |||||||
Working Capital | Healing Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 202 | |||||||
Working Capital | Squatty Potty, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 230 | |||||||
Working Capital | Photo Paper Direct Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 2,144 | |||||||
Customer Relations | Healing Solutions LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 39,975 | |||||||
Customer Relations | Squatty Potty, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 5,700 | |||||||
PP&E | Photo Paper Direct Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | 86 | |||||||
Real Property | Photo Paper Direct Ltd. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets | $ 848 |
Acquisition - Allocation of P_2
Acquisition - Allocation of Purchase Price to Assets Acquired and Liabilities Assumed Based on Estimated Fair Values at Acquisition Date (Parenthetical) (Details) - shares | May 05, 2021 | Feb. 02, 2021 |
Healing Solutions LLC | ||
Business Acquisition [Line Items] | ||
Business acquisition shares issued | 1,387,759 | |
Business combination, consideration transferred, common stock issued | 1,387,759 | |
Photo Paper Direct Ltd. | ||
Business Acquisition [Line Items] | ||
Business acquisition shares issued | 704,548 | |
Business combination, consideration transferred, common stock issued | 704,548 |
Acquisition - Amounts Assigne_2
Acquisition - Amounts Assigned to Goodwill and Major Intangibles Asset Classifications (Parenthetical) (Details) - USD ($) $ in Thousands | May 06, 2021 | Feb. 02, 2021 | May 05, 2021 |
Photo Paper Direct Ltd. | |||
Business Acquisition [Line Items] | |||
Deferred tax liability | $ 1,481 | ||
Trademarks | Healing Solutions LLC | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 10 years | ||
Trademarks | Squatty Potty, LLC | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 10 years | ||
Trademarks | Photo Paper Direct Ltd. | |||
Business Acquisition [Line Items] | |||
Useful life (in years) | 10 years |
Acquisition - Pro Forma Informa
Acquisition - Pro Forma Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Net revenue as reported | $ 247,767 | $ 185,704 | $ 114,451 |
Net revenue pro forma | 264,725 | 387,277 | 167,146 |
Operating loss as reported | (34,077) | (34,751) | (54,333) |
Operating loss (income) pro forma | (30,771) | 639 | (46,244) |
Aussie Health Assets | |||
Business Acquisition [Line Items] | |||
Net revenue | 1,759 | ||
Operating income | 310 | ||
Smash Assets | |||
Business Acquisition [Line Items] | |||
Net revenue as reported | 16,100 | ||
Net revenue | 83,132 | 42,994 | |
Operating loss as reported | 4,500 | ||
Operating income | 15,221 | 4,163 | |
Truweo Assets | |||
Business Acquisition [Line Items] | |||
Net revenue as reported | 1,600 | ||
Net revenue | 11,155 | 7,942 | |
Operating loss as reported | 700 | ||
Operating income | 5,484 | $ 3,616 | |
Healing Solutions LLC | |||
Business Acquisition [Line Items] | |||
Net revenue as reported | 33,100 | ||
Net revenue | 4,600 | 78,646 | |
Operating loss as reported | 10,700 | ||
Operating income | 382 | 7,792 | |
Squatty Potty, LLC | |||
Business Acquisition [Line Items] | |||
Net revenue as reported | 10,100 | ||
Net revenue | 6,024 | 14,919 | |
Operating loss as reported | 4,200 | ||
Operating income | 1,772 | 3,529 | |
Photo Paper Direct Ltd. | |||
Business Acquisition [Line Items] | |||
Net revenue as reported | 11,600 | ||
Net revenue | 6,334 | 13,721 | |
Operating loss as reported | 1,300 | ||
Operating income | $ 1,152 | $ 3,364 |
Acquisition - Pro Forma Infor_2
Acquisition - Pro Forma Information (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
NET REVENUE | $ 247,767 | $ 185,704 | $ 114,451 |
Operating income (loss) | (34,077) | (34,751) | $ (54,333) |
Smash Assets | |||
Business Acquisition [Line Items] | |||
NET REVENUE | 16,100 | ||
Operating income (loss) | 4,500 | ||
Truweo Assets | |||
Business Acquisition [Line Items] | |||
NET REVENUE | 1,600 | ||
Operating income (loss) | $ 700 | ||
Healing Solutions LLC | |||
Business Acquisition [Line Items] | |||
NET REVENUE | 33,100 | ||
Operating income (loss) | 10,700 | ||
Squatty Potty, LLC | |||
Business Acquisition [Line Items] | |||
NET REVENUE | 10,100 | ||
Operating income (loss) | 4,200 | ||
Photo Paper Direct Ltd. | |||
Business Acquisition [Line Items] | |||
NET REVENUE | 11,600 | ||
Operating income (loss) | $ 1,300 |
Acquisition - Summary of Change
Acquisition - Summary of Changes in Carrying Value of Estimated Contingent Earn-Out Liabilities (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Beginning Balance | $ 22,531 | |
Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares | 20,971 | |
Change in fair value of contingent earn-out liabilities | (30,529) | |
Payment of contingent earn-out liability | $ (3,800) | (3,750) |
Ending Balance | 9,223 | |
Smash Assets | ||
Business Acquisition [Line Items] | ||
Beginning Balance | 22,531 | |
Change in fair value of contingent earn-out liabilities | (17,291) | |
Ending Balance | 5,240 | |
Healing Solutions LLC | ||
Business Acquisition [Line Items] | ||
Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares | 16,558 | |
Change in fair value of contingent earn-out liabilities | (12,808) | |
Payment of contingent earn-out liability | (3,750) | |
Squatty Potty, LLC | ||
Business Acquisition [Line Items] | ||
Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares | 3,502 | |
Change in fair value of contingent earn-out liabilities | 481 | |
Payment of contingent earn-out liability | (4,000) | |
Ending Balance | 3,983 | |
Photo Paper Direct Ltd. | ||
Business Acquisition [Line Items] | ||
Acquisition date fair value of contingent earn-out liabilities and inventory to be settled in shares | 911 | |
Change in fair value of contingent earn-out liabilities | (911) | |
Payment of contingent earn-out liability | $ (6,000) |
Acquisition - Summary of Chan_2
Acquisition - Summary of Changes in Carrying Value of Estimated Contingent Earn-Out Liabilities (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Nov. 30, 2021 | Dec. 31, 2021 | |
Business Combinations [Abstract] | ||
Business acquisition, earn-out payments | $ 3,800 | $ 3,750 |
Common stock earn-out payments | $ 1,400 | |
Settlement charge of contingent earn-out liability | $ 4,164 |
Goodwill and Intangibles - Summ
Goodwill and Intangibles - Summary of Changes in Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Goodwill impairment | $ 0 | |
Net Book Value | 119,941,000 | $ 47,318,000 |
Gross Carrying Amount | 31,944,000 | 333,000 |
Additions | 40,500,000 | 31,611,000 |
Gross Carrying Amount | 72,444,000 | 31,944,000 |
Accumulated Amortization | (7,489,000) | (484,000) |
Net Book Value | 64,955,000 | 31,460,000 |
Trademarks | ||
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 31,810,000 | 310,000 |
Additions | 34,100,000 | 31,500,000 |
Gross Carrying Amount | 65,910,000 | 31,810,000 |
Accumulated Amortization | (6,332,000) | (442,000) |
Net Book Value | 59,578,000 | 31,368,000 |
Non-Competition Agreement | ||
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 111,000 | 11,000 |
Additions | 100,000 | |
Gross Carrying Amount | 111,000 | 111,000 |
Accumulated Amortization | (54,000) | (19,000) |
Net Book Value | 57,000 | 92,000 |
Transition Services Agreement | ||
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 23,000 | 12,000 |
Additions | 11,000 | |
Gross Carrying Amount | 23,000 | 23,000 |
Accumulated Amortization | (23,000) | (23,000) |
Customer Relations | ||
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Additions | 5,700,000 | |
Gross Carrying Amount | 5,700,000 | |
Accumulated Amortization | (380,000) | |
Net Book Value | 5,320,000 | |
Other | ||
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Additions | 700,000 | |
Gross Carrying Amount | 700,000 | |
Accumulated Amortization | (700,000) | |
Goodwill | ||
Disclosure Of Goodwill And Intangible Assets [Line Items] | ||
Gross Carrying Amount | 47,318,000 | 745,000 |
Additions | 72,623,000 | 46,573,000 |
Gross Carrying Amount | 119,941,000 | 47,318,000 |
Net Book Value | $ 119,941,000 | $ 47,318,000 |
Goodwill and Intangibles - Su_2
Goodwill and Intangibles - Summary of Estimated Aggregate Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2022 | $ 7,228 | |
2023 | 7,214 | |
2024 | 7,171 | |
2025 | 7,130 | |
2026 | 7,130 | |
Thereafter | 29,082 | |
Total | $ 64,955 | $ 31,460 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 10, 2022 | Mar. 01, 2022 | Jun. 10, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||||
Common stock, par value | $ 0.0001 | $ 0.0001 | |||
Proceeds from warrant exercise | $ 9,085 | ||||
Subsequent Event | Securities Purchase Agreement | Common Stock | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 6,436,322 | ||||
Common stock, par value | $ 0.0001 | ||||
Subsequent Event | Securities Purchase Agreement | Common Stock Warrant | |||||
Subsequent Event [Line Items] | |||||
Warrants to purchase shares | 4,827,242 | ||||
Share price | $ 2.91 | ||||
Proceeds from warrant exercise | $ 27,500 | ||||
Subsequent Event | Securities Class Action | |||||
Subsequent Event [Line Items] | |||||
Litigation settlement | $ 1,300 | ||||
Subsequent Event | Securities Class Action | Accounts Payable | |||||
Subsequent Event [Line Items] | |||||
Litigation settlement | $ 1,300 | ||||
Pre-Funded Warrants | Subsequent Event | Securities Purchase Agreement | Common Stock Warrant | |||||
Subsequent Event [Line Items] | |||||
Warrants to purchase shares | 3,013,850 | ||||
Share price | $ 2.9099 | ||||
Private Placement | |||||
Subsequent Event [Line Items] | |||||
Sale of stock, number of shares issued in transaction | 2,666,667 | ||||
Private Placement | Subsequent Event | Securities Purchase Agreement | Common Stock Warrant | |||||
Subsequent Event [Line Items] | |||||
Warrants to purchase shares | 2,260,388 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 0 | $ 35 | $ 0 |
Charged to Costs & Expenses | 0 | 0 | 35 |
Charged to Other Accounts | 0 | 0 | 0 |
Accounts Written Off or Deductions | 0 | (35) | 0 |
Balance at End of Period | 0 | 0 | 35 |
Deferred tax valuation allowance | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 37,823 | 29,203 | 15,167 |
Charged to Costs & Expenses | 0 | 0 | 0 |
Charged to Other Accounts | 9,493 | 8,620 | 14,036 |
Accounts Written Off or Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 47,316 | $ 37,823 | $ 29,203 |