Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Apr. 16, 2020 | Aug. 02, 2019 | |
Cover [Abstract] | |||
Entity Registrant Name | Apex Global Brands Inc. | ||
Entity Central Index Key | 0000844161 | ||
Document Type | 10-K | ||
Document Period End Date | Feb. 1, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --02-01 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Public Float | $ 8,000,000 | ||
Entity Common Stock, Shares Outstanding | 5,570,530 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 0-18640 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-4182437 | ||
Entity Address, Address Line One | 5990 Sepulveda Boulevard | ||
Entity Address, City or Town | Sherman Oaks | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 91411 | ||
City Area Code | 818 | ||
Local Phone Number | 908‑9868 | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Trading Symbol | APEX |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,209 | $ 4,284 |
Accounts receivable, net | 4,962 | 4,363 |
Other receivables | 157 | 339 |
Prepaid expenses and other current assets | 1,431 | 857 |
Total current assets | 7,759 | 9,843 |
Property and equipment, net | 319 | 620 |
Intangible assets, net | 59,110 | 64,751 |
Goodwill | 12,152 | 16,252 |
Accrued revenue and other assets | 3,582 | 1,645 |
Total assets | 82,922 | 93,111 |
Current liabilities: | ||
Accounts payable and other current liabilities | 6,282 | 7,834 |
Current portion of long-term debt | 56,044 | 1,300 |
Deferred revenue—current | 3,551 | 1,626 |
Total current liabilities | 65,877 | 10,760 |
Long-term liabilities: | ||
Long-term debt | 53,154 | |
Deferred income taxes | 9,515 | 11,268 |
Long-term lease liabilities | 1,389 | |
Other liabilities | 794 | 2,807 |
Total liabilities | 77,575 | 77,989 |
Commitments and Contingencies (Note 8) | ||
Stockholders’ Equity: | ||
Preferred stock, $.02 par value, 1,000,000 shares authorized, none issued | ||
Common stock, $.02 par value, 10,000,000 shares authorized, shares issued 5,570,530 (February 1, 2020) and 4,900,318 (February 2, 2019) | 111 | 98 |
Additional paid-in capital | 78,541 | 76,829 |
Accumulated deficit | (73,305) | (61,805) |
Total stockholders’ equity | 5,347 | 15,122 |
Total liabilities and stockholders’ equity | $ 82,922 | $ 93,111 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Feb. 01, 2020 | Feb. 02, 2019 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.02 | $ 0.02 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,570,530 | 4,900,318 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Income Statement [Abstract] | ||
Revenues | $ 21,041 | $ 24,444 |
Operating expenses: | ||
Selling, general and administrative expenses | 13,255 | 14,638 |
Stock-based compensation and stock warrant charges | 1,032 | 890 |
Business acquisition and integration costs | 284 | 307 |
Restructuring charges | 1,134 | 5,755 |
Intangible assets and goodwill impairment charge | 9,100 | |
Gain on sale of assets | (479) | |
Depreciation and amortization | 1,167 | 1,478 |
Total operating expenses | 25,972 | 22,589 |
Operating (loss) income | (4,931) | 1,855 |
Other income (expense): | ||
Interest expense | (8,809) | (8,220) |
Other expense, net | (92) | (3,273) |
Total other expense, net | (8,901) | (11,493) |
Loss before income taxes | (13,832) | (9,638) |
(Benefit) provision for income taxes | (2,332) | 1,901 |
Net loss | $ (11,500) | $ (11,539) |
Net loss per share: | ||
Basic loss per share | $ (2.12) | $ (2.45) |
Diluted loss per share | $ (2.12) | $ (2.45) |
Weighted average common shares outstanding: | ||
Basic | 5,412 | 4,710 |
Diluted | 5,412 | 4,710 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Feb. 03, 2018 | $ 24,115 | $ 93 | $ 74,564 | $ (50,542) |
Balance (in shares) at Feb. 03, 2018 | 4,666 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Adoption of ASC 606 | 275 | 275 | ||
Stock-based compensation | 890 | 890 | ||
Equity issuances | 185 | $ 5 | 180 | |
Equity issuances (in shares) | 234 | |||
Stock warrants | 1,196 | 1,196 | ||
Net loss | (11,539) | (11,539) | ||
Balance at Feb. 02, 2019 | 15,122 | $ 98 | 76,829 | (61,805) |
Balance (in shares) at Feb. 02, 2019 | 4,900 | |||
Increase (Decrease) in Stockholders' Equity | ||||
Stock-based compensation | 1,032 | 1,032 | ||
Equity issuances | 582 | $ 13 | 569 | |
Equity issuances (in shares) | 671 | |||
Stock warrants | 111 | 111 | ||
Net loss | (11,500) | (11,500) | ||
Balance at Feb. 01, 2020 | $ 5,347 | $ 111 | $ 78,541 | $ (73,305) |
Balance (in shares) at Feb. 01, 2020 | 5,571 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Cash flows from operating activities: | ||
Net loss from continuing operations | $ (11,500) | $ (11,539) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,167 | 1,478 |
Restructuring charges | 1,134 | 5,755 |
Intangible assets and goodwill impairment charge | 9,100 | |
Amortization of deferred financing costs | 2,316 | 3,903 |
Deferred income taxes and noncurrent provisions | (3,440) | 971 |
Stock-based compensation and stock warrant charges | 1,143 | 989 |
Gain on sale of assets | (479) | |
Changes in operating assets and liabilities, net of effects from business dispositions: | ||
Accounts receivable | (599) | 5,635 |
Other receivables | 182 | 133 |
Prepaid expenses and other current assets | (574) | 396 |
Other assets | (2,049) | (1,265) |
Accounts payable and other current liabilities | (2,412) | (12,255) |
Long-term lease liabilities | 1,389 | |
Deferred revenue | 1,708 | (2,282) |
Net cash used in operating activities | (2,435) | (8,560) |
Net cash (used in) provided by operating activities from discontinued operations | 0 | (1,380) |
Cash flows from investing activities: | ||
Capital investments | (224) | (253) |
Proceeds from business dispositions | 5,576 | |
Net cash (used in) provided by investing activities | (224) | 5,323 |
Cash flows from financing activities: | ||
Proceeds from term loans, promissory notes and line of credit | 49,250 | |
Payments on term loan and line of credit | (950) | (40,000) |
Debt issuance costs | (48) | (3,708) |
Issuance of common stock | 582 | 185 |
Net cash (used in) provided by financing activities | (416) | 5,727 |
(Decrease) increase in cash and cash equivalents | (3,075) | 1,110 |
Cash and cash equivalents, beginning of period | 4,284 | 3,174 |
Cash and cash equivalents, end of period | 1,209 | 4,284 |
Cash paid for: | ||
Income taxes | 1,222 | 1,267 |
Interest | 5,437 | 6,862 |
Noncash investing and financing activities: | ||
Issuance of subordinated promissory note for lease termination | $ 275 | |
Conversion of related party junior participation interests to subordinated promissory notes | $ 11,500 |
Company Business and Summary of
Company Business and Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Company Business and Summary of Significant Accounting Policies | 1. Company Business and Summary of Significant Accounting Policies Apex Global Brands Inc. and subsidiaries (the “Company”) is an international marketer and manager of a portfolio of fashion and lifestyle brands, primarily licensing product in the apparel, footwear, home products and accessories categories. The Company’s brands include Cherokee, Hi-Tec, Magnum, Interceptor, 50 Peaks, Hawk Signature, Tony Hawk, Everyday California, Carole Little and Sideout. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Apex Global Brands Inc., Hi-Tec and its other subsidiaries. Cherokee Inc. changed its name to Apex Global Brands Inc. effective June 27, 2019. Intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal year comprises a 52- or 53-week period ending on the Saturday nearest to January 31. The fiscal years ended February 1, 2020 (“Fiscal 2020”) and February 2, 2019 (“Fiscal 2019”) are both 52-week periods. The Company’s functional currency is the U.S. dollar. Substantially all of the Company’s revenues are denominated in U.S. dollars, even though they may be generated from agreements with licensee in foreign countries. A large majority of the Company’s operating expenses are also denominated in U.S dollars and any expenses that are not denominated in U.S. dollars are recorded using the average exchange rate during the period. Monetary foreign currency assets and liabilities are reported using the exchange rate at the end of the reporting period. Any gains or losses from exchange rate fluctuations are included in other income (expense) in the consolidated statements of operations. Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on the going concern basis of accounting, which assumes the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Under the Company’s senior secured credit facility, the Company is required to maintain specified levels of Adjusted EBITDA as defined ($9.5 million for the trailing twelve months as of February 1, 2020) and maintain a minimum cash balance of $1.0 million. The Company’s operating results for the twelve months ended November 2, 2019 and twelve months ended February 1, 2020 resulted in violations of this minimum Adjusted EBITDA covenant, which are events of default. Revenues for the three months ended November 2, 2019 were lower than the Company’s previous forecasts due to lower than expected royalties reported by the Company’s licensees, which were negatively impacted by the economic uncertainty surrounding Brexit, global trade wars and increasing tariffs on footwear and apparel, and the weakening of the British pound sterling and euro in relation to the U.S. dollar. In response, management enacted certain cash savings measures, and although operating results improved during the three months ended February 1, 2020, the cash savings measures and operational improvements were not enough to regain compliance with the Adjusted EBITDA covenant. Subsequent to the fiscal year ended February 1, 2020, the Company’s business has been materially adversely affected by the effects of the global pandemic of COVID-19 and the related protective public health measures. The Company’s business depends upon purchases and sales of products bearing the Company’s brands by the Company’s licensees, and the prevalence of shelter in place orders in the regions where these products are sold, together with the closure of many retail stores of the Company’s licensees, have resulted in significant declines in the Company’s royalties beginning in the first quarter of Fiscal 2021, which will likely continue for some period of time. In response to the decline in revenues, the Company has implemented further cost savings measures, including pay reductions, employee furloughs and other measures. The Company has classified its debt as current as financial projections, which now reflect the impact of the COVID-19 pandemic, indicate that there is a significant risk of further violations of the minimum Adjusted EBITDA covenant beyond the forbearance period agreed to with the Company’s senior lender. The Company’s senior lender has agreed to forbear from enforcing its rights under the senior secured credit facility through July 27, 2020. Beginning with May 1, 2020 and continuing through the term of the forbearance agreement, interest and loan amortization payments will not be paid in cash, but an equivalent amount will be added to the principal amount of the term loans to be repaid in future periods. The required minimum cash balance to be maintained by the Company was reduced during the forbearance period, and the senior lender agreed that the proceeds from the April 2020 Paycheck Protection Program promissory note of $0.7 million can be used by the Company for the working capital purposes specified under the promissory note. The Company is required during the forbearance period to evaluate strategic alternatives designed to provide liquidity to repay the term loans under the senior secured credit facility. In exchange for these concessions, the senior lender will receive an additional fee totaling 2% of the then outstanding loan balance when the debt is repaid. Future compliance failures under the senior secured credit facility, other than the Adjusted EBITDA covenant violations described above, would subject the Company to significant risks, including the right of its senior lender to terminate its obligations under the senior secured credit facility, declare all or any portion of the borrowed amounts then outstanding to be accelerated and due and payable, and/or exercise any other right or remedies it may have under applicable law, including foreclosing on the Company’s and/or its subsidiaries’ assets that serve as collateral for the borrowed amounts. If any of these rights were to be exercised, the Company’s financial condition and ability to continue operations would be materially jeopardized. If the Company is unable to meet obligations to lenders and other creditors, the Company may have to significantly curtail or even cease operations. The Company is evaluating potential sources of working capital, including the disposition of certain assets, and believes that the NOL carryback provisions of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act passed by the U.S. Congress in March 2020 will result in additional liquidity, although the timing of these future cash receipts is uncertain. The Company received $0.7 million of proceeds on April 20, 2020 from a promissory note issued by one of the Company’s banks under the Paycheck Protection Program included in the CARES Act, and NOL carryback claims are expected to total approximately $8.0 million. Management’s plans also include the evaluation of strategic alternatives to enhance shareholder value. There is no assurance that the Company will be able to execute these plans. Reverse Stock Split On September 27, 2019, the Company effected a one-for-three reverse stock split (the “Reverse Stock Split”) of its common stock. The Reverse Stock Split reduced the number of the Company’s outstanding shares of common stock from approximately 16.6 million shares to approximately 5.5 million shares and reduces the number of authorized shares of common stock from 30.0 million shares to 10.0 million shares. Unless the context otherwise requires, all share and per share amounts in these consolidated financial statements have been revised to reflect the Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of our common stock to additional paid-in capital. Cash and Cash Equivalents Money market funds and highly liquid debt instruments purchased with original maturities of three months or less are considered cash equivalents. Carrying values approximate fair value. Property and Equipment Furniture and fixtures, computer equipment and software are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, ranging from three to seven years. Leasehold improvements are recorded at cost and amortized on a straight-line basis over their estimated useful lives or related lease term, whichever is shorter. Intangible Assets, Goodwill and Other Long-Lived Assets The Company holds various trademarks that are registered with the United States Patent and Trademark Office and similar government agencies in a number of other countries. Acquired trademarks are either capitalized and amortized on a straight-line basis over their estimated useful lives, or classified as indefinite-lived assets and not amortized if no legal, regulatory, contractual, competitive, economic, or other factors limit their useful lives. The Company routinely evaluates the remaining useful life of trademarks that are not being amortized to determine whether events or circumstances continue to support an indefinite useful life. Trademark registration and renewal costs are capitalized and amortized on a straight-line basis over their estimated useful lives. Goodwill represents the excess of purchase price over the fair value of assets acquired in business combinations and is not amortized. Indefinite lived trademarks and goodwill are evaluated annually in the Company’s fourth quarter for impairment or when events or circumstances indicate a potential impairment, and an impairment loss is recognized to the extent that the asset’s carrying amount exceeds its fair value. The Company estimates the fair values of its indefinite-lived trademarks based on discounted cash flow models and market place multiples that include assumptions determined by the Company’s management regarding projected revenues, operating costs and discount rates. Management’s expectations regarding license agreement renewals are also considered, along with forecasts of revenues from replacement licensees for agreements that have terminated. The Company’s goodwill impairment test is based primarily on the relationship between the Company’s market capitalization and the book value of equity adjusted for an estimated control premium and other factors that may indicate our market capitalization does not represent fair value. Amortizing trademarks and other long-lived assets are tested for recoverability using undiscounted cash flow models. Deferred Financing Costs and Debt Discounts Deferred financing costs and debt discounts are reflected in the balance sheets as a reduction of long-term debt and are amortized into interest expense over the life of the debt using the effective interest method. Revenue Recognition and Deferred Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard (“ASC 606”) that superseded previous existing revenue recognition guidance and was adopted by the Company using the modified retrospective method as of February 4, 2018, the beginning of the first quarter of its fiscal year ended February 2, 2019. The adoption of the new guidance primarily affected the recognition of minimum guaranteed royalties under the Company’s agreements with its licensees that have historically been recognized as earned in accordance with the underlying license agreements. Under this new standard, such royalties are generally recognized on a straight-line basis over the term of the license agreement. Accordingly, for license agreements with escalating minimum guaranteed royalties, revenues will generally be higher during the early years of the license agreement than they would have been under the previous guidance. Royalties are typically earned based on the licensees’ retail or wholesale sales of licensed products, or based on the cost of producing the licensed goods. Revenues from license fees, up-front payments and milestone payments, which are received in connection with other rights and services that represent continuing obligations of the Company, are deferred and recognized in accordance with the license agreements. The cumulative effect on adoption of ASC 606 totaled $0.3 million, resulting in a charge to accrued revenue and an adjustment to deferred revenue with a corresponding credit to accumulated deficit for all contracts not completed as of the adoption date. As a result of applying ASC 606, the Company recognized additional revenue of $0.9 million and $1.1 million for the years ended February 1, 2020 and February 2, 2019, respectively. The Company recognizes contract liabilities as deferred revenue when licensees prepay royalties, or from license fees, up-front payments and milestone payments that have not yet been earned. Deferred revenue is classified as current or noncurrent depending on when it is anticipated to be recognized. Deferred revenue totaled $3.8 million and $2.2 million at February 1, 2020 and February 2, 2019, respectively. Revenue recognized in the fiscal year ended February 1, 2020 and February 2, 2019 that was included in deferred revenue at February 2, 2019 and February 3, 2018 was $1.6 million and $2.7 million, respectively. The Company recognizes contract assets as accrued revenue when minimum guaranteed royalties are recognized that have not yet been earned under the license agreements. The Company typically bills and receives payments from customers on a quarterly basis for royalties earned or for minimum guaranteed royalties that have historically been recognized as earned in accordance with the underlying license agreements. Accrued revenue is classified as current or noncurrent depending on when the asset is anticipated to be charged to revenue. Accrued revenue totaled $2.2 million and $1.4 million at February 1, 2020 and February 2, 2019, respectively. The Company’s performance obligations are to maintain its licensed intellectual property, and in some cases, to provide product development and design services. As of February 1, 2020, the Company had a contractual right to receive approximately $50.0 million of aggregate minimum licensing revenue through the remaining terms of the current licenses, excluding any renewals, which is primarily expected to be recognized approximately over the next 10 years. Marketing and Advertising Generally, the Company’s licensees fund their own advertising programs. Marketing, advertising and promotional costs incurred by the Company are charged to selling, general and administrative expense as incurred and were approximately $1.3 million and $1.0 million Rent Expense For the fiscal year ended February 2, 2019, rent expense was recognized on a straight‑line basis over the term of the lease. Beginning with the fiscal year ended February 1, 2020, the Company adopted the provisions of Topic 842, which is described below under the caption, “ Recent Accounting Pronouncements”. Stock-Based Compensation Stock option grants and restricted stock awards to employees and directors are measured and recognized as compensation expense based on estimated fair values, which are determined using option valuation models. These models are based on assumptions about stock price volatility, interest rates, dividend rates and other factors. The estimated fair value is amortized over the vesting period of the award using the graded amortization method. Restructuring Charges Restructuring charges consist of severance, lease termination, contract termination and other restructuring-related costs. A liability for severance costs is recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. Lease and contract termination costs are recognized at the date the Company ceases using the rights conveyed by the lease or contract and are measured at fair value, which is determined based on the remaining contractual lease obligations reduced by estimated sublease rentals, if any. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income during the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. In assessing the need for a valuation allowance, the Company considers estimates of future taxable income and ongoing prudent and feasible tax planning strategies. The Company records the tax effect of equity issuances within the income statement. The Company accounts for uncertainty in income taxes based on financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. A tax position is initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are measured as the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority, assuming full knowledge of the position and all relevant facts. Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”) is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of outstanding stock options and warrants as if such securities had been exercised at the beginning of the period. The computation of diluted common shares outstanding excludes outstanding stock options and warrants that are antidilutive. Warrants The Company has issued warrants to purchase shares of its common stock to one of its Hi-Tec licensees and to certain of its lenders and investors. Because the warrants are assessed to be equity in nature, they are measured at fair value at inception. The warrants issued to the Company’s licensee are recognized as additional paid-in capital and contra revenue over the period the revenue from the license is expected to be recognized in accordance with Accounting Standards Codification (“ASC”) 605-60-25 and ASC 505-50-S99-1. The warrants issued to the Company’s lenders and investors are recognized as additional paid-in capital and, if issued related to a modification of existing debt, are charged directly to operating expenses in the Company’s statements of operations. Alternatively, the fair value of warrants issued in connection with new borrowings or the extinguishment of existing borrowings is capitalized and amortized into interest expense over the life of the new debt using the effective interest method. Fair Value of Financial Instruments The carrying value of accounts receivable and accounts payable approximates fair value due to their short‑term nature. The carrying value of the Company’s long‑term debt approximates fair value as these borrowings bear interest at floating rates. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosures of contingent assets and liabilities. While management bases its estimates on assumptions it believes are reasonable under the circumstances, these estimates by their nature are subject to an inherent degree of uncertainty. Actual results could differ materially from these estimates. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update (“ASU”) to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for the first quarter of the Company’s Fiscal 2023, which will end on January 28, 2023. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (“Topic 326”). For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. This new standard is effective for the Company’s fiscal year ending January 30, 2021 (‘‘Fiscal 2021’’). The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements, but does not expect the impact to be material. In March 2016, the FASB issued authoritative guidance which modified existing guidance for off-balance sheet treatment of a lessee’s operating leases (“Topic 842”). The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset is recognized related to the right to use the underlying asset, and a liability is recognized related to the obligation to make lease payments over the term of the lease. These amounts are determined based on the present value of the lease payments over the lease term. The standard also requires expanded disclosures about leases. The Company adopted this standard as of the beginning of Fiscal 2020, electing the transition option that allowed it not to restate the comparative periods in its financial statements in the year of adoption and to carry forward its historical assessment of whether contracts are, or contain, leases, along with its historical assessment of lease classifications and initial direct costs. The Company’s leases obligations comprise primarily individual leases for office space without multiple components. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date when the leased assets are made available for use. For the Company’s long-term leases, operating leases obligations are included in other current liabilities and long-term lease liabilities, and right-of-use assets are included in accrued revenue and other assets. The Company does not have any material finance leases. The operating lease obligations and right-of-use assets recognized on adoption of Topic 842 were $4.7 million and $4.6 million, respectively. The difference between the total right-of-use assets and total lease liabilities recorded on adoption is primarily due to the derecognition of prepaid rent expenses. The Company uses estimates of its incremental borrowing rate (IBR) based on the information available at the lease commencement date in determining the present value of lease payments. In determining the appropriate IBR, the Company considers information including, but not limited to, its credit rating, the lease term, and the currency in which the arrangement is denominated. For leases which commenced prior to our adoption of Topic 842, we used the estimated IBR on the date of adoption. When the Company has the sole option to either renew or terminate a lease, the present value of the right-of-use asset and lease obligation includes the extension period when it is reasonably certain that the Company will exercise the option. Lease expense is recognized on a straight-line basis over the lease term. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Feb. 01, 2020 | |
Receivables [Abstract] | |
Accounts Receivable | 2 . Accounts Receivable Accounts receivable consists of the following: (In thousands) February 1, 2020 February 2, 2019 Accounts receivable $ 5,491 $ 4,990 Allowance for doubtful accounts (529 ) (627 ) $ 4,962 $ 4,363 An allowance for doubtful accounts is provided for based on the Company’s assessment of various factors that may affect the Company’s licensees’ ability to pay, such as historical experience, age of accounts receivable balances, credit quality of the Company’s licensees, current economic conditions and bankruptcy. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 3 . Property and Equipment Property and equipment consists of the following: (In thousands) February 1, 2020 February 2, 2019 Computer Equipment $ 609 $ 642 Software 370 276 Furniture and Fixtures 1,902 1,946 Leasehold Improvements 412 807 3,293 3,671 Accumulated depreciation (2,974 ) (3,051 ) $ 319 $ 620 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 4. Intangible Assets Intangible assets consists of the following: February 1, 2020 February 2, 2019 (In thousands) Gross Amount Accumulated Amortization Net Book Value Gross Amount Accumulated Amortization Net Book Value Amortizable trademarks $ 30,153 (20,600 ) $ 9,553 $ 27,899 (19,835 ) $ 8,064 Indefinite lived trademarks 49,557 — 49,557 56,687 — 56,687 $ 79,710 $ (20,600 ) $ 59,110 $ 84,586 $ (19,835 ) $ 64,751 The Hi-Tec Acquisition during Fiscal 2017 resulted in trademarks valued at $52.4 million that were classified as indefinite lived and not subjected to amortization. Other indefinite lived trademarks include certain Cherokee brand trademarks that were acquired in historical transactions. The Company's revenues from its Hi-Tec, Magnum and Interceptor brands, which were acquired in the Hi-Tec Acquisition, were significantly below previous forecasts for the three months ended November 2, 2019. This was identified as an interim impairment indicator for the related indefinite lived trademarks during the preparation of the Company’s interim financial statements, and management performed an interim impairment test based on updated cash flow projections and discounted cash flows based on estimated weighted average costs of capital (income approach). The Company determined that the fair values of its Hi-Tec and Magnum trademarks were not in excess of their carrying values, and as a result, an interim impairment charge of $5.0 million was recorded during the three months ended November 2, 2019 to adjust these trademarks to their estimated fair values. The fair value of the Company’s Interceptor brand was in excess of its $2.1 million carrying value, so no impairment charge was necessary based on the interim test. However, the Company believes that increased tariffs and global trade wars have negatively impacted the competitive and economic environment in which Interceptor operates, and an indefinite life is no longer supported. Accordingly, the Interceptor trademark is now being amortized over its estimated remaining useful life. During the fourth quarter, management completed its evaluation of key inputs used to estimate the fair value of its indefinite lived trademarks and determined that the interim impairment charge was appropriate. The Company has acquired other trademarks that are being amortized over their estimated useful lives, which average 10 years with no residual values. Amortization of intangible assets was $0.8 million and $0.8 million for Fiscal 2020 and Fiscal 2019, respectively. Expected amortization of intangible assets for fiscal years ending in 2021, 2022, 2023, 2024 and 2025 is approximately $0.7 million, $0.7 million, $0.6 million, $0.6 million, and $0.6 million, respectively. Trademark registration and renewal costs capitalized during Fiscal 2020 and Fiscal 2019 totaled $0.1 million in both years. Weighted-average useful life for intangible assets acquired during the year was approximately 10 years. The Company’s goodwill amounting to $16.3 million arose from historical acquisitions and the Hi-Tec Acquisition that occurred during Fiscal 2017. Goodwill is tested at least annually for impairment in the Company’s fourth quarter, and because the Company has one reporting unit, the impairment test is based primarily on the relationship between the Company’s market capitalization and the book value of its equity adjusted for an estimated control premium. The annual goodwill impairment test in the fourth quarter of the fiscal year ended February 1, 2020 indicated that the Company’s goodwill was impaired, and an impairment charge of $4.1 million was recorded to reduce goodwill to its estimated fair value of $12.2 million. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Feb. 01, 2020 | |
Other Liabilities Current [Abstract] | |
Accounts Payable and Other Current Liabilities | 5 . Accounts Payable and Other Current Liabilities Accounts Payable and other current liabilities consists of the following: (In thousands) February 1, 2020 February 2, 2019 Accounts payable $ 2,814 $ 3,120 Accrued employee compensation and benefits 413 376 Restructuring plan liabilities 1,677 3,003 Income taxes payable 291 473 Other liabilities 1,087 862 $ 6,282 $ 7,834 |
Restructuring Plans
Restructuring Plans | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Plans | 6. Restructuring Plan The Company incurred restructuring charges in Fiscal 2018 and Fiscal 2017 related to the Hi-Tec Acquisition and its integration into the Company’s ongoing operations (the “Hi-Tec Plan”). Restructuring charges were also incurred in the fourth quarter of Fiscal 2018 as the Company’s staff was realigned to appropriately support its then current business (the “FY18 Plan”). Furthermore, during Fiscal 2019 and continuing into Fiscal 2020, the Company took additional steps designed to improve its organizational efficiencies by eliminating redundant positions and unneeded facilities, and by terminating various consulting and marketing contracts (the “FY19 Plan”). Restructuring charges include the following: Year Ended (In thousands) February 1, 2020 February 2, 2019 Severance costs $ 78 $ 1,241 Contract termination costs 79 3,314 Leases, net of sublease 931 469 Service costs 46 731 $ 1,134 $ 5,755 Payments against the restructuring plan obligations were as follows: (In thousands) FY19 Plan FY18 Plan Hi-Tec Plan Total Balance, February 3, 2018 — 1,031 2,501 3,532 Restructuring charges 5,755 — — 5,755 Payments during the period (2,995 ) (987 ) (2,302 ) (6,284 ) Balance, February 2, 2019 $ 2,760 $ 44 $ 199 $ 3,003 Restructuring charges 1,134 — — 1,134 Payments during the period (2,245 ) (44 ) (171 ) (2,460 ) Balance, February 1, 2020 $ 1,649 $ — $ 28 $ 1,677 |
Debt
Debt | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 7 . Debt On August 3, 2018, the Company entered into a new senior secured credit facility, which provided a $40.0 million term loan and $13.5 million of subordinated promissory notes (the “Junior Notes”). These credit facilities replaced the Company’s previous senior secured credit facility that was entered into in connection with the closing of the Hi-Tec Acquisition in Fiscal 2017. On January 30, 2019, the senior secured credit facility was amended to provide an additional term loan of $5.3 million. On December 31, 2019 the Company issued a $0.3 million subordinated promissory note to its former landlord as partial consideration for an early lease termination. The term loans mature in August 2021 and require quarterly principal payments and monthly interest payments based on LIBOR plus a margin. The additional $5.3 million term loan also requires interest of 3.0% payable in kind with such interest being added to the principal balance of the loan. The term loans are secured by substantially all the assets of the Company and are guaranteed by the Company’s subsidiaries. The Junior Notes mature in November 2021, and they are secured by a second priority lien on substantially all of the assets of Company and guaranteed by the Company’s subsidiaries. Interest is payable monthly on the Junior Notes, but no periodic amortization payments are required. The Junior Notes are subordinated in rights of payment and priority to the term loans but otherwise have economic terms substantially similar to the term loans. Excluding the interest payable in kind, the weighted-average interest rate on the term loans, Junior Notes and additional subordinated promissory note at February 1, 2020 was 11.0%. The term loans are subject to a borrowing base and include financial covenants and obligations regarding the operation of the Company’s business that are customary in facilities of this type, including limitations on the payment of dividends. Financial covenants include the requirement to maintain specified levels of EBITDA, as defined in the agreement, and maintain a specified level of cash on hand. (See Note 1, Liquidity and Going Concern.) The Company is required to maintain a borrowing base comprising the value of the Company’s trademarks that exceeds the outstanding balance of the term loans. If the borrowing base is less than the outstanding term loans at any measurement period, then the Company would be required to repay a portion of the term loans to eliminate such shortfall. Events of default include, among other things, the occurrence of a change of control of the Company, and a default under the senior secured credit facility would also trigger a default under the Junior Notes agreements. The Company’s operating results for the twelve months ended November 2, 2019 and February 1, 2020 resulted in a violation of the minimum Adjusted EBITDA covenant, which is an event of default. However, the Company’s lender has agreed to forbear from enforcing its rights under the senior secured credit facility through July 27, 2020. (See Note 1, Liquidity and Going Concern.) The former credit facility included $11.5 million of junior participation interests that were held by a large stockholder, one of the board members and major stockholder, and the chief executive officer who is also one of the board members. These junior participation interests, along with $2.0 million of cash from the large stockholder, were exchanged into $13.5 million of the new Junior Notes referred to above with these same parties. On December 28, 2018, the Company entered into subordinated note agreements with a large stockholder and two board members to provide working capital. These notes totaled $2.0 million in principal and were repaid on January 30, 2019 with proceeds from the additional term loan under the Company’s senior secured credit facility. Outstanding borrowings under the term loans and the Junior Notes were $57.9 million at February 1, 2020, and borrowings at February 2, 2019 were $58.6 million. The unamortized deferred financing costs associated with these borrowings were $1.8 million and $4.1 million at February 1, 2020 and February 2, 2019, respectively. Principal repayments to be made during the next two years relating to outstanding borrowings under the term loans and the Junior Notes are as follows: (Dollars in thousands) Repayment on Principal Fiscal 2021 1,400 Fiscal 2022 56,475 Total future principal repayments $ 57,875 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 01, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8 . Commitments and Contingencies The Company indemnifies certain customers against liability arising from third‑party claims of intellectual property rights infringement related to the Company’s trademarks. These indemnities appear in the licensing agreements with the Company’s customers, are not limited in amount or duration and generally survive the expiration of the contracts. The Company is unable to determine a range of estimated losses that it could incur related to such indemnities since the amount of any potential liabilities cannot be determined until an infringement claim has been made. The Company is involved from time to time in various claims and other matters incidental to the Company’s business, the resolution of which is not presently expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. Estimated reserves for contingent liabilities, including threatened or pending litigation, are recorded as liabilities in the financial statements when the outcome of these matters is deemed probable and the liability is reasonably estimable. The Company has non-cancellable operating lease agreements with various expiration dates for office space and equipment. Certain lease agreements include options to renew, which are not reasonably certain to be exercised and therefore are not factored into our determination of the present value of lease obligations. As of February 1, 2020, the weighted-average remaining lease term is 4.9 years, and the weighted-average IBR is 8.8%. The right-of-use assets as of February 1, 2020 was $1.6 million. Future minimum commitments under non-cancellable operating leases as of February 1, 2020 are as follows: (In thousands) Operating Leases Fiscal 2021 $ 430 Fiscal 2022 442 Fiscal 2023 425 Fiscal 2024 434 Fiscal 2025 333 Total future minimum lease payments 2,064 Less imputed interest (381 ) Present value of operating lease liabilities $ 1,683 Total operating lease costs excluding variable lease costs and sublease income expense was $0.5 million and $0.8 million for Fiscal 2020 and Fiscal 2019, respectively. Cash paid for operating lease obligations is consistent with operating lease costs for the period, Future minimum lease payments prior to the Company’s adoption of Topic 842 as of February 2, 2019 were as follows: (Dollars in thousands) Operating Leases Fiscal 2020 $ 854 Fiscal 2021 865 Fiscal 2022 876 Fiscal 2023 857 Fiscal 2024 863 Thereafter 1,673 Total future minimum lease payments $ 5,988 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Stockholders’ Equity | 9 . Stockholders’ Equity In connection with the refinancing on August 3, 2018, the Company issued warrants to purchase 397,666 shares of the Company’s common stock to its term loan lenders at an exercise price of $1.35 per share and issued warrants to purchase 533,333 shares of the Company’s common stock to certain of its Junior Notes lenders at an exercise price of $1.50 per share. Each warrant is exercisable on issuance and has a seven-year life. Warrants to purchase 230,000 shares of the Company’s common stock were also issued to the Company’s term loan lenders in connection with the additional $5.3 million term loan on January 30, 2019 at an exercise price of $2.28 per share with a 7-year life. The fair values of these warrants were $1.2 million on their grant dates as determined using a Black Scholes option pricing model and were included as components of deferred financing costs in the Company’s balance sheet with an offset to equity. The following table shows the lenders, their relationship to the Company, the loan amounts provided at the time, and the stock warrants issued to such investors, if any: (Dollars in thousands) Term Loan and Junior Note Amounts Stock Warrant Shares Term Loan lenders, unrelated parties $ 40,000 397,666 Additional Term Loan lenders, unrelated parties 5,250 230,000 Cove Street Capital, LLC, large stockholder 9,000 415,000 Jess Ravich, board member and large stockholder 4,400 118,333 Henry Stupp, Chief Executive Officer and board member 100 — $ 58,750 1,160,999 The Company issued warrants to a licensee in Fiscal 2017 in connection with its acquisition of its Hi-Tec, Magnum and Interceptor brands. The Company also granted warrants in Fiscal 2018 in connection with the purchase of junior interests in the Company’s former credit facility and in connection with a private place of equity securities. Outstanding stock warrants consist of the following: Year Ended February 1, 2020 February 2, 2019 Outstanding Stock Warrant Shares Average Exercise Price Per Share Outstanding Stock Warrant Shares Average Exercise Price Per Share Unexercisable warrants issued to licensee 26,667 $ 30.00 26,667 $ 30.00 Exercisable warrants issued to licensee 13,333 30.00 13,333 30.00 Warrants issued to junior note holders 170,369 6.75 585,370 3.03 Warrants issued in private placement 108,898 12.66 108,898 12.66 Warrants issued to term loan lenders 627,666 1.68 627,666 1.68 946,933 $ 5.06 1,361,934 $ 3.96 Stock warrants of 415,000 shares were exercised in Fiscal 2020 at an exercise price of $1.50 per share, and stock warrants of 118,333 shares were exercised in Fiscal 2019 at $1.50 per share. Stock‑Based Compensation Effective July 16, 2013, the Company’s stockholders approved the Apex Global Brands Inc. 2013 Stock Incentive Plan, which was amended and restated effective June 6, 2016 (the “2013 Plan”), and which generally replaced the Company’s previous stock option plans to provide for the issuance of stock‑based awards to officers, other employees and directors. The 2013 Plan authorizes 400,000 shares of common stock to be issued and 157,496 shares of common stock previously reserved but unissued under previous plans. Stock options issued to employees are granted at the market price on the date of grant, generally vest over a three-year period, and generally expire seven to ten years from the date of grant. The Company has also granted non‑plan stock options to certain executives as a material inducement for employment. The Company estimates the fair value of stock‑based payment awards on the date of grant using the Black-Scholes option‑pricing model. The compensation expense recognized for all stock‑based awards is net of estimated forfeitures over the award’s service period. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service period as a component of operating expenses in the statements of operations, and amounted to $1.0 million and The estimated fair value of stock options granted was estimated using the following assumptions: Year End February 2, 2019 Expected dividend yield — % Expected volatility 67.8 to 84.5 Risk-free interest rate 2.4% to 2.6 % Expected life (in years) 3.0 to 3.7 Estimated forfeiture rate —% to 10.0 % No stock options were granted in Fiscal 2020. The expected dividend yield is based on past dividends paid and the current dividend yield at the time of grant, and the expected stock price volatility is based on the historical volatility of the Company’s stock price. The risk‑free interest rate is based on the U.S. Treasury yield in effect at the time of grant with an equivalent remaining term. The expected life of the stock options is based on historical experience of similar options, giving consideration to the contractual terms, vesting schedules and expectations of future employee behavior. Changes in shares under options are summarized as follows: (Dollar amounts in thousands, except per share amounts) Shares Weighted Average Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, at February 3, 2018 125,113 $ 31.79 4.2 — Granted 35,333 $ 1.77 Exercised — $ — Canceled/forfeited (21,611 ) $ 34.01 Outstanding, at February 2, 2019 138,835 $ 23.80 3.5 — Granted — — Exercised — $ — Canceled/forfeited (63,111 ) 38.04 Outstanding, at February 1, 2020 75,724 $ 11.94 3.3 — Vested and Exercisable at February 1, 2020 66,168 $ 11.95 2.8 — The weighted-average grant date fair value of stock options granted under the 2013 Plan was As of February 1, 2020, total unrecognized stock‑based compensation expense related to non-vested stock options was insignificant. In addition to stock options, the Compensation Committee of the Board of Directors has granted performance stock units and restricted stock units to members of the Board of Directors and to each of the Company’s executive officers under the 2013 Plan. The Compensation Committee has approved the grant of restricted stock units to compensate the Company's non-executive directors for a portion of their services in Fiscal 2020 totaling $0.4 million. The Company intends to grant these restricted stock units as shares become available under the 2013 Plan. No performance stock units were granted in Fiscal 2020 or Fiscal 2019, and previously granted performance stock units are not expected to vest because share price targets are not expected to be met during the 3-year performance period. Stock-based compensation expense for performance stock units and restricted stock units is reported as a component of operating expenses and was approximately $0.5 million and $0.7 million for Fiscal 2020 and Fiscal 2019, respectively. Changes in performance stock units and restricted stock units are summarized as follows: Number of Shares Weighted Average Grant-Date Fair Value Unvested stock at February 3, 2018 70,995 $ 22.92 Granted 328,205 2.27 Vested (116,251 ) 11.31 Forfeited (48,298 ) 9.74 Unvested stock at February 2, 2019 234,651 $ 2.49 Granted 206,367 1.77 Vested (277,588 ) 1.93 Forfeited (26,323 ) 3.60 Unvested stock at February 1, 2020 137,107 $ 2.33 As of February 1, 2020, total unrecognized stock‑based compensation expense related to performance stock units and restricted stock units was approximately $0.3 million, which is expected to be recognized over a weighted-average period of approximately 1.7 years. |
Significant Contracts and Conce
Significant Contracts and Concentrations of Risk | 12 Months Ended |
Feb. 01, 2020 | |
Significant Contracts [Abstract] | |
Significant Contracts and Concentrations of Risk | 1 0 . Significant Contracts and Concentrations of Risk Concentrations of credit risk within the Company’s accounts receivable are minimal due to the limited amount of uncollected receivables and the nature of the Company’s licensing business. Generally, the Company does not require collateral or other security to support licensee receivables. Four licensees accounted for approximately 45% of accounts receivable at February 1, 2020, and two licensees accounted for approximately 27% of revenues in Fiscal 2020. Two licensees accounted for approximately 29% of accounts receivable at February 2, 2019, and one licensee accounted for approximately 10% of revenues in Fiscal 2019. |
Taxes on Income
Taxes on Income | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Taxes on Income | 1 1 . Taxes on Income Geographic sources of loss before income taxes are as follows: Year Ended (In thousands) February 1, 2020 February 2, 2019 United States $ (4,490 ) $ (7,399 ) Foreign (9,342 ) (2,239 ) Loss before income taxes $ (13,832 ) $ (9,638 ) The provision for income taxes as shown in the accompanying consolidated statements of operations includes the following: Year Ended (In thousands) February 1, 2020 February 2, 2019 Current: Federal $ — $ — State 79 (11 ) Foreign 1,029 941 1,108 930 Deferred: Federal — — State (27 ) 37 Foreign (3,413 ) 934 (3,440 ) 971 $ (2,332 ) $ 1,901 The provision for income taxes differs from the amounts computed using the statutory United States federal income tax rate as shown in the table below. Nondeductible transaction costs arose in the Hi-Tec Acquisition. Year Ended (In thousands, except percentages) February 1, 2020 February 2, 2019 Tax expense at U.S. statutory rate $ (2,905 ) 21.0 % $ (2,023 ) 21.0 % State income taxes, net of federal income tax benefit 443 (3.2 ) 265 (2.7 ) Stock-based compensation 151 (1.1 ) 262 (2.7 ) Adjustments to unrecognized tax benefits (2,769 ) 20.0 (380 ) 3.9 Nondeductible expenses 6 — 12 (0.1 ) Nondeductible transaction costs — — 21 (0.2 ) Valuation allowance 3,388 (24.5 ) 4,616 (47.9 ) Foreign Taxes 630 (4.6 ) 381 (4.0 ) Indefinite-lived intangible assets (1,429 ) 10.3 (787 ) 8.2 Other 153 (1.1 ) (466 ) 4.8 $ (2,332 ) 16.8 % $ 1,901 (19.7 )% A summary of deferred income tax assets and liabilities is as follows: Year Ended (In thousands) February 1, 2020 February 2, 2019 Deferred tax assets: Deferred revenue $ 16 $ 9 Amortization 1,576 3,855 Other 271 359 Employee compensation 106 242 Interest expense carryforward 1,844 1,277 Net operating loss and credit carryforwards 31,095 26,089 Valuation Allowance (34,759 ) (31,472 ) Total deferred income tax assets 149 359 Deferred tax liabilities: Amortization (9,664 ) (11,627 ) Total deferred income tax liabilities (9,664 ) (11,627 ) Net deferred income tax liabilities $ (9,515 ) $ (11,268 ) The Company acquired various net operating loss and credit carryforwards as part of the Hi-Tec Acquisition, and generated additional net operating loss carryforwards in Fiscal 2018, Fiscal 2019 and Fiscal 2020. Federal and state net operating loss carryforwards totaled $44.2 million and $19.4 million, respectively, at February 1, 2020. As a result of recent tax law changes, $27.1 million of the Company’s federal net operating loss carryforwards do not expire, while $17.1 million of the Company’s federal and all of the Company’s state net operating loss carryforwards expire beginning in 2026. Foreign net operating loss carryforwards were $68.3 million at February 1, 2020 and begin to expire in 2021. The Company has foreign tax and other credit carryforwards of $4.1 million at February 1, 2020 that begin to expire in 2023. The utilization of certain federal and state net operating loss and credit carryforwards acquired in connection with the Hi-Tec Acquisition are subject to annual limitations under Section 382 of the Internal Revenue Code of 1986 and similar state provisions. Primarily as a result of impairment charges related to certain trademarks, the Company’s U.S. operations have sustained a cumulative pretax loss over the last three fiscal years. Accordingly, the Company has provided a valuation allowance of $12.9 million at February 1, 2020 to reduce the carrying value of the underlying deferred tax assets to zero. This valuation allowance will be maintained until there is sufficient positive evidence to conclude that it is more likely than not that these deferred tax assets will be realized. The Company continues to maintain a valuation allowance related to deferred tax assets of the foreign subsidiaries acquired in the Hi-Tec Acquisition, primarily due to the cumulative losses generated in these jurisdictions, and which amounted to $21.9 During the fourth quarter of the fiscal year ended February 1, 2020, management identified an immaterial error related to the remeasurement of the naked credit. The Company used an incorrect exchange rate in the fiscal year ended February 2, 2019 when converting the deferred tax liability from euros to U.S. dollars, resulting in a $0.8 million overstatement of the income tax provision for that period. Management concluded that the impact of this error was not material and has corrected the consolidated financial statements and other financial information presented in this Annual Report on Form 10-K to properly reflect the income tax provision and naked credit. See Note 14 for further information. The Company currently does not have unremitted earnings attributable to foreign subsidiaries. The Company recorded a $3.9 million reserve for uncertain tax positions in Fiscal 2017 as part of Hi-Tec acquisition. Gross unrecognized tax benefits are reflected in the accompanying balance sheets as reductions in deferred tax assets or in other long-term liabilities if there are no net operating loss carryforwards available to offset them. The Company was granted approval in Fiscal 2020 to combine certain of its subsidiaries in the Netherlands as one tax filing group. This determination allowed the Company to recognize certain tax benefits from uncertain tax positions taken in prior years. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: Year Ended (In thousands) February 1, 2020 February 2, 2019 Gross unrecognized tax benefits at beginning of year $ 3,416 $ 3,846 Additions: Tax positions taken in the current year — 426 Reductions: Tax positions taken in prior years (2,729 ) (261 ) Lapse in statute of limitations — (595 ) Gross unrecognized tax benefits at year end $ 687 $ 3,416 Interest and penalties related to unrecognized tax benefits are included within the provision for income taxes in the statements of operations. Interest recognized related to unrecognized tax benefits was a reversal (benefit) of $0.1 million for Fiscal 2020 and an expense of $0.1 million for Fiscal 2019. The timing of resolution with taxing authorities is not predictable or certain, but the Company believes it is reasonably possible that $0.7 million of unrecognized tax benefits will be recognized in the next twelve months due to a retroactive change in the composition of a consolidated tax filing group or expiration of the applicable statute of limitations. At February 1, 2020, approximately $0.4 million of unrecognized tax benefits would, if recognized, impact the Company’s effective tax rate. The Company files income tax returns in the U.S. federal, California and certain other state jurisdictions. For federal income tax purposes, the Fiscal 2017 and later tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For state tax purposes, the Fiscal 2016 and later tax years remain open for examination by the tax authorities under a four-year statute of limitations. |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Feb. 01, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Plan | 1 2 . Defined Contribution Plan The Company maintains a defined contribution plan under Section 401(k) of the Internal Revenue Code, under which the Company makes contributions to match the contributions made by employees participating in the plan. These matching contributions were approximately $0.1 million and $0.2 million for Fiscal 2020 and Fiscal 2019, respectively. |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | 1 3 . Segment Reporting and Geographic Information The Company’s operations comprise one reportable segment, which consists of a single operating segment and reporting unit. Revenues by geographic area based upon the licensees’ country of domicile comprise the following: Year Ended (In thousands) February 1, 2020 February 2, 2019 U.S. and Canada $ 5,223 $ 6,383 EMEA ( 1) 5,229 8,015 Asia and Pacific 7,168 6,046 Latin America 3,421 4,000 Total $ 21,041 $ 24,444 (1) Long‑lived assets located in the United States and outside the United States amount to $0.2 million and $0.2 million, respectively, at February 1, 2020, and $0.2 million and $0.4 million, respectively, at February 2, 2019. |
Correction of an Immaterial Err
Correction of an Immaterial Error in Prior Period Financial Statements | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Correction of an Immaterial Error in Prior Period Financial Statements | 14 . During the fourth quarter of the fiscal year ended February 1, 2020, management identified an immaterial error related to the remeasurement of the deferred tax liability, or naked credit, related to the indefinite-lived trademarks acquired in the Hi-Tec Acquisition. The Company used an incorrect exchange rate in the fiscal year ended February 2, 2019 when converting the deferred tax liability from euros to U.S. dollars, resulting in a $0.8 million overstatement of both the income tax provision and deferred tax liability for that period. The Company assessed the materiality of this discrepancy from a qualitative and quantitative perspective and concluded that the impact of the error is not material. Therefore, the correction of the error did not require the amendment of the Company's previously filed Annual Report on Form 10-K. The Company has corrected its consolidated financial statements for all periods presented in this Annual Report on Form 10-K, as well as the unaudited interim financial information presented in Note 15. The impact of the correction on the Company’s consolidated statement of operations and balance sheet for the fiscal year ended February 2, 2019 is as follows (there was no impact on total operating cash flows in the consolidated statement of cash flows): Year Ended February 2, 2019 (in thousands, except per share amounts) As Reported As Revised Provision for income taxes $ 2,688 $ 1,901 Net loss $ (12,326 ) $ (11,539 ) Net loss per share: Basic $ (2.62 ) $ (2.45 ) Diluted $ (2.62 ) $ (2.45 ) February 2, 2019 (in thousands) As Reported As Revised Deferred income taxes $ 12,055 $ 11,268 Total liabilities $ 78,776 $ 77,989 Total stockholders’ equity $ 14,335 $ 15,122 |
Unaudited Quarterly Results
Unaudited Quarterly Results | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Results | 1 5 . Unaudited Quarterly Results A summary of quarterly financial data (unaudited) is presented below, which includes the correction to net (loss) income and basic and diluted (loss) earnings per share for the fourth quarter of Fiscal 2019 to reflect the $0.8 million immaterial correction related to income taxes. (See Note 14 above). Fiscal 2020 (In thousands, except per share data) May 4, 2019 August 3, 2019 November 2, 2019 February 1, 2020 Revenues $ 5,052 $ 5,603 $ 4,894 $ 5,492 Net loss before income taxes (1,620 ) (571 ) (6,136 ) (5,505 ) Net (loss) income (2,258 ) (1,267 ) (6,828 ) (1,147 ) Basic (loss) earnings per share (1) (0.44 ) (0.23 ) (1.23 ) (0.21 ) Diluted (loss) earnings per share (1) (0.44 ) (0.23 ) (1.23 ) (0.21 ) Fiscal 2019 (In thousands, except per share data) May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 Revenues $ 5,402 $ 7,073 $ 5,842 $ 6,127 Net (loss) earnings before income taxes (1,903 ) (8,002 ) 154 113 Net (loss) income (2,741 ) (9,053 ) 63 192 Basic (loss) earnings per share (1) (0.59 ) (1.94 ) 0.01 0.04 Diluted (loss) earnings per share (1) (0.59 ) (1.94 ) 0.01 0.04 (1 ) Quarterly computations of per share amounts are made independently and, as a result, the sum of per share amounts for the four quarters in any one fiscal year may not add to the per share amount for such fiscal year. |
Company Business and Summary _2
Company Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Apex Global Brands Inc., Hi-Tec and its other subsidiaries. Cherokee Inc. changed its name to Apex Global Brands Inc. effective June 27, 2019. Intercompany accounts and transactions have been eliminated in consolidation. The Company’s fiscal year comprises a 52- or 53-week period ending on the Saturday nearest to January 31. The fiscal years ended February 1, 2020 (“Fiscal 2020”) and February 2, 2019 (“Fiscal 2019”) are both 52-week periods. The Company’s functional currency is the U.S. dollar. Substantially all of the Company’s revenues are denominated in U.S. dollars, even though they may be generated from agreements with licensee in foreign countries. A large majority of the Company’s operating expenses are also denominated in U.S dollars and any expenses that are not denominated in U.S. dollars are recorded using the average exchange rate during the period. Monetary foreign currency assets and liabilities are reported using the exchange rate at the end of the reporting period. Any gains or losses from exchange rate fluctuations are included in other income (expense) in the consolidated statements of operations. |
Liquidity and Going Concern | Liquidity and Going Concern The accompanying consolidated financial statements have been prepared on the going concern basis of accounting, which assumes the Company will continue to operate as a going concern and which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. Under the Company’s senior secured credit facility, the Company is required to maintain specified levels of Adjusted EBITDA as defined ($9.5 million for the trailing twelve months as of February 1, 2020) and maintain a minimum cash balance of $1.0 million. The Company’s operating results for the twelve months ended November 2, 2019 and twelve months ended February 1, 2020 resulted in violations of this minimum Adjusted EBITDA covenant, which are events of default. Revenues for the three months ended November 2, 2019 were lower than the Company’s previous forecasts due to lower than expected royalties reported by the Company’s licensees, which were negatively impacted by the economic uncertainty surrounding Brexit, global trade wars and increasing tariffs on footwear and apparel, and the weakening of the British pound sterling and euro in relation to the U.S. dollar. In response, management enacted certain cash savings measures, and although operating results improved during the three months ended February 1, 2020, the cash savings measures and operational improvements were not enough to regain compliance with the Adjusted EBITDA covenant. Subsequent to the fiscal year ended February 1, 2020, the Company’s business has been materially adversely affected by the effects of the global pandemic of COVID-19 and the related protective public health measures. The Company’s business depends upon purchases and sales of products bearing the Company’s brands by the Company’s licensees, and the prevalence of shelter in place orders in the regions where these products are sold, together with the closure of many retail stores of the Company’s licensees, have resulted in significant declines in the Company’s royalties beginning in the first quarter of Fiscal 2021, which will likely continue for some period of time. In response to the decline in revenues, the Company has implemented further cost savings measures, including pay reductions, employee furloughs and other measures. The Company has classified its debt as current as financial projections, which now reflect the impact of the COVID-19 pandemic, indicate that there is a significant risk of further violations of the minimum Adjusted EBITDA covenant beyond the forbearance period agreed to with the Company’s senior lender. The Company’s senior lender has agreed to forbear from enforcing its rights under the senior secured credit facility through July 27, 2020. Beginning with May 1, 2020 and continuing through the term of the forbearance agreement, interest and loan amortization payments will not be paid in cash, but an equivalent amount will be added to the principal amount of the term loans to be repaid in future periods. The required minimum cash balance to be maintained by the Company was reduced during the forbearance period, and the senior lender agreed that the proceeds from the April 2020 Paycheck Protection Program promissory note of $0.7 million can be used by the Company for the working capital purposes specified under the promissory note. The Company is required during the forbearance period to evaluate strategic alternatives designed to provide liquidity to repay the term loans under the senior secured credit facility. In exchange for these concessions, the senior lender will receive an additional fee totaling 2% of the then outstanding loan balance when the debt is repaid. Future compliance failures under the senior secured credit facility, other than the Adjusted EBITDA covenant violations described above, would subject the Company to significant risks, including the right of its senior lender to terminate its obligations under the senior secured credit facility, declare all or any portion of the borrowed amounts then outstanding to be accelerated and due and payable, and/or exercise any other right or remedies it may have under applicable law, including foreclosing on the Company’s and/or its subsidiaries’ assets that serve as collateral for the borrowed amounts. If any of these rights were to be exercised, the Company’s financial condition and ability to continue operations would be materially jeopardized. If the Company is unable to meet obligations to lenders and other creditors, the Company may have to significantly curtail or even cease operations. The Company is evaluating potential sources of working capital, including the disposition of certain assets, and believes that the NOL carryback provisions of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act passed by the U.S. Congress in March 2020 will result in additional liquidity, although the timing of these future cash receipts is uncertain. The Company received $0.7 million of proceeds on April 20, 2020 from a promissory note issued by one of the Company’s banks under the Paycheck Protection Program included in the CARES Act, and NOL carryback claims are expected to total approximately $8.0 million. Management’s plans also include the evaluation of strategic alternatives to enhance shareholder value. There is no assurance that the Company will be able to execute these plans. |
Reverse Stock Split | Reverse Stock Split On September 27, 2019, the Company effected a one-for-three reverse stock split (the “Reverse Stock Split”) of its common stock. The Reverse Stock Split reduced the number of the Company’s outstanding shares of common stock from approximately 16.6 million shares to approximately 5.5 million shares and reduces the number of authorized shares of common stock from 30.0 million shares to 10.0 million shares. Unless the context otherwise requires, all share and per share amounts in these consolidated financial statements have been revised to reflect the Reverse Stock Split, including reclassifying an amount equal to the reduction in par value of our common stock to additional paid-in capital. |
Cash and Cash Equivalents | Cash and Cash Equivalents Money market funds and highly liquid debt instruments purchased with original maturities of three months or less are considered cash equivalents. Carrying values approximate fair value. |
Property and Equipment | Property and Equipment Furniture and fixtures, computer equipment and software are recorded at cost and depreciated on a straight-line basis over their estimated useful lives, ranging from three to seven years. Leasehold improvements are recorded at cost and amortized on a straight-line basis over their estimated useful lives or related lease term, whichever is shorter. |
Intangible Assets, Goodwill and Other Long-Lived Assets | Intangible Assets, Goodwill and Other Long-Lived Assets The Company holds various trademarks that are registered with the United States Patent and Trademark Office and similar government agencies in a number of other countries. Acquired trademarks are either capitalized and amortized on a straight-line basis over their estimated useful lives, or classified as indefinite-lived assets and not amortized if no legal, regulatory, contractual, competitive, economic, or other factors limit their useful lives. The Company routinely evaluates the remaining useful life of trademarks that are not being amortized to determine whether events or circumstances continue to support an indefinite useful life. Trademark registration and renewal costs are capitalized and amortized on a straight-line basis over their estimated useful lives. Goodwill represents the excess of purchase price over the fair value of assets acquired in business combinations and is not amortized. Indefinite lived trademarks and goodwill are evaluated annually in the Company’s fourth quarter for impairment or when events or circumstances indicate a potential impairment, and an impairment loss is recognized to the extent that the asset’s carrying amount exceeds its fair value. The Company estimates the fair values of its indefinite-lived trademarks based on discounted cash flow models and market place multiples that include assumptions determined by the Company’s management regarding projected revenues, operating costs and discount rates. Management’s expectations regarding license agreement renewals are also considered, along with forecasts of revenues from replacement licensees for agreements that have terminated. The Company’s goodwill impairment test is based primarily on the relationship between the Company’s market capitalization and the book value of equity adjusted for an estimated control premium and other factors that may indicate our market capitalization does not represent fair value. Amortizing trademarks and other long-lived assets are tested for recoverability using undiscounted cash flow models. |
Deferred Financing Costs and Debt Discount | Deferred Financing Costs and Debt Discounts Deferred financing costs and debt discounts are reflected in the balance sheets as a reduction of long-term debt and are amortized into interest expense over the life of the debt using the effective interest method. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue In May 2014, the Financial Accounting Standards Board (“FASB”) issued a comprehensive new revenue recognition standard (“ASC 606”) that superseded previous existing revenue recognition guidance and was adopted by the Company using the modified retrospective method as of February 4, 2018, the beginning of the first quarter of its fiscal year ended February 2, 2019. The adoption of the new guidance primarily affected the recognition of minimum guaranteed royalties under the Company’s agreements with its licensees that have historically been recognized as earned in accordance with the underlying license agreements. Under this new standard, such royalties are generally recognized on a straight-line basis over the term of the license agreement. Accordingly, for license agreements with escalating minimum guaranteed royalties, revenues will generally be higher during the early years of the license agreement than they would have been under the previous guidance. Royalties are typically earned based on the licensees’ retail or wholesale sales of licensed products, or based on the cost of producing the licensed goods. Revenues from license fees, up-front payments and milestone payments, which are received in connection with other rights and services that represent continuing obligations of the Company, are deferred and recognized in accordance with the license agreements. The cumulative effect on adoption of ASC 606 totaled $0.3 million, resulting in a charge to accrued revenue and an adjustment to deferred revenue with a corresponding credit to accumulated deficit for all contracts not completed as of the adoption date. As a result of applying ASC 606, the Company recognized additional revenue of $0.9 million and $1.1 million for the years ended February 1, 2020 and February 2, 2019, respectively. The Company recognizes contract liabilities as deferred revenue when licensees prepay royalties, or from license fees, up-front payments and milestone payments that have not yet been earned. Deferred revenue is classified as current or noncurrent depending on when it is anticipated to be recognized. Deferred revenue totaled $3.8 million and $2.2 million at February 1, 2020 and February 2, 2019, respectively. Revenue recognized in the fiscal year ended February 1, 2020 and February 2, 2019 that was included in deferred revenue at February 2, 2019 and February 3, 2018 was $1.6 million and $2.7 million, respectively. The Company recognizes contract assets as accrued revenue when minimum guaranteed royalties are recognized that have not yet been earned under the license agreements. The Company typically bills and receives payments from customers on a quarterly basis for royalties earned or for minimum guaranteed royalties that have historically been recognized as earned in accordance with the underlying license agreements. Accrued revenue is classified as current or noncurrent depending on when the asset is anticipated to be charged to revenue. Accrued revenue totaled $2.2 million and $1.4 million at February 1, 2020 and February 2, 2019, respectively. The Company’s performance obligations are to maintain its licensed intellectual property, and in some cases, to provide product development and design services. As of February 1, 2020, the Company had a contractual right to receive approximately $50.0 million of aggregate minimum licensing revenue through the remaining terms of the current licenses, excluding any renewals, which is primarily expected to be recognized approximately over the next 10 years. |
Marketing and Advertising | Marketing and Advertising Generally, the Company’s licensees fund their own advertising programs. Marketing, advertising and promotional costs incurred by the Company are charged to selling, general and administrative expense as incurred and were approximately $1.3 million and $1.0 million |
Rent Expense | Rent Expense For the fiscal year ended February 2, 2019, rent expense was recognized on a straight‑line basis over the term of the lease. Beginning with the fiscal year ended February 1, 2020, the Company adopted the provisions of Topic 842, which is described below under the caption, “ Recent Accounting Pronouncements”. |
Stock-Based Compensation | Stock-Based Compensation Stock option grants and restricted stock awards to employees and directors are measured and recognized as compensation expense based on estimated fair values, which are determined using option valuation models. These models are based on assumptions about stock price volatility, interest rates, dividend rates and other factors. The estimated fair value is amortized over the vesting period of the award using the graded amortization method. |
Restructuring Charges | Restructuring Charges Restructuring charges consist of severance, lease termination, contract termination and other restructuring-related costs. A liability for severance costs is recognized when the plan of termination has been communicated to the affected employees and is measured at its fair value at the communication date. Lease and contract termination costs are recognized at the date the Company ceases using the rights conveyed by the lease or contract and are measured at fair value, which is determined based on the remaining contractual lease obligations reduced by estimated sublease rentals, if any. |
Income Taxes | Income Taxes The Company uses the asset and liability method of accounting for income taxes. Deferred income taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to be applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income during the period that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. In assessing the need for a valuation allowance, the Company considers estimates of future taxable income and ongoing prudent and feasible tax planning strategies. The Company records the tax effect of equity issuances within the income statement. The Company accounts for uncertainty in income taxes based on financial statement recognition and measurement of tax positions taken or expected to be taken on a tax return. A tax position is initially recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are measured as the largest amount of tax benefit with a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority, assuming full knowledge of the position and all relevant facts. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share (“EPS”) is computed by dividing the net (loss) income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, while diluted EPS additionally includes the dilutive effect of outstanding stock options and warrants as if such securities had been exercised at the beginning of the period. The computation of diluted common shares outstanding excludes outstanding stock options and warrants that are antidilutive. |
Warrants | Warrants The Company has issued warrants to purchase shares of its common stock to one of its Hi-Tec licensees and to certain of its lenders and investors. Because the warrants are assessed to be equity in nature, they are measured at fair value at inception. The warrants issued to the Company’s licensee are recognized as additional paid-in capital and contra revenue over the period the revenue from the license is expected to be recognized in accordance with Accounting Standards Codification (“ASC”) 605-60-25 and ASC 505-50-S99-1. The warrants issued to the Company’s lenders and investors are recognized as additional paid-in capital and, if issued related to a modification of existing debt, are charged directly to operating expenses in the Company’s statements of operations. Alternatively, the fair value of warrants issued in connection with new borrowings or the extinguishment of existing borrowings is capitalized and amortized into interest expense over the life of the new debt using the effective interest method. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of accounts receivable and accounts payable approximates fair value due to their short‑term nature. The carrying value of the Company’s long‑term debt approximates fair value as these borrowings bear interest at floating rates. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and disclosures of contingent assets and liabilities. While management bases its estimates on assumptions it believes are reasonable under the circumstances, these estimates by their nature are subject to an inherent degree of uncertainty. Actual results could differ materially from these estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update (“ASU”) to simplify the accounting for income taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. This guidance will be effective for the first quarter of the Company’s Fiscal 2023, which will end on January 28, 2023. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (“Topic 326”). For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. This new standard is effective for the Company’s fiscal year ending January 30, 2021 (‘‘Fiscal 2021’’). The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements, but does not expect the impact to be material. In March 2016, the FASB issued authoritative guidance which modified existing guidance for off-balance sheet treatment of a lessee’s operating leases (“Topic 842”). The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset is recognized related to the right to use the underlying asset, and a liability is recognized related to the obligation to make lease payments over the term of the lease. These amounts are determined based on the present value of the lease payments over the lease term. The standard also requires expanded disclosures about leases. The Company adopted this standard as of the beginning of Fiscal 2020, electing the transition option that allowed it not to restate the comparative periods in its financial statements in the year of adoption and to carry forward its historical assessment of whether contracts are, or contain, leases, along with its historical assessment of lease classifications and initial direct costs. The Company’s leases obligations comprise primarily individual leases for office space without multiple components. The Company determines if an arrangement is or contains a lease at inception by evaluating various factors, including whether a vendor’s right to substitute an identified asset is substantive. Lease classification is determined at the lease commencement date when the leased assets are made available for use. For the Company’s long-term leases, operating leases obligations are included in other current liabilities and long-term lease liabilities, and right-of-use assets are included in accrued revenue and other assets. The Company does not have any material finance leases. The operating lease obligations and right-of-use assets recognized on adoption of Topic 842 were $4.7 million and $4.6 million, respectively. The difference between the total right-of-use assets and total lease liabilities recorded on adoption is primarily due to the derecognition of prepaid rent expenses. The Company uses estimates of its incremental borrowing rate (IBR) based on the information available at the lease commencement date in determining the present value of lease payments. In determining the appropriate IBR, the Company considers information including, but not limited to, its credit rating, the lease term, and the currency in which the arrangement is denominated. For leases which commenced prior to our adoption of Topic 842, we used the estimated IBR on the date of adoption. When the Company has the sole option to either renew or terminate a lease, the present value of the right-of-use asset and lease obligation includes the extension period when it is reasonably certain that the Company will exercise the option. Lease expense is recognized on a straight-line basis over the lease term. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Receivables [Abstract] | |
Schedule of accounts receivable | Accounts receivable consists of the following: (In thousands) February 1, 2020 February 2, 2019 Accounts receivable $ 5,491 $ 4,990 Allowance for doubtful accounts (529 ) (627 ) $ 4,962 $ 4,363 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Property Plant And Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consists of the following: (In thousands) February 1, 2020 February 2, 2019 Computer Equipment $ 609 $ 642 Software 370 276 Furniture and Fixtures 1,902 1,946 Leasehold Improvements 412 807 3,293 3,671 Accumulated depreciation (2,974 ) (3,051 ) $ 319 $ 620 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consists of the following: February 1, 2020 February 2, 2019 (In thousands) Gross Amount Accumulated Amortization Net Book Value Gross Amount Accumulated Amortization Net Book Value Amortizable trademarks $ 30,153 (20,600 ) $ 9,553 $ 27,899 (19,835 ) $ 8,064 Indefinite lived trademarks 49,557 — 49,557 56,687 — 56,687 $ 79,710 $ (20,600 ) $ 59,110 $ 84,586 $ (19,835 ) $ 64,751 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Other Liabilities Current [Abstract] | |
Schedule of Accounts Payable and Other Current Liabilities | Accounts Payable and other current liabilities consists of the following: (In thousands) February 1, 2020 February 2, 2019 Accounts payable $ 2,814 $ 3,120 Accrued employee compensation and benefits 413 376 Restructuring plan liabilities 1,677 3,003 Income taxes payable 291 473 Other liabilities 1,087 862 $ 6,282 $ 7,834 |
Restructuring Plans (Tables)
Restructuring Plans (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of restructuring charges | Restructuring charges include the following: Year Ended (In thousands) February 1, 2020 February 2, 2019 Severance costs $ 78 $ 1,241 Contract termination costs 79 3,314 Leases, net of sublease 931 469 Service costs 46 731 $ 1,134 $ 5,755 |
Schedule of restructuring-related costs is measured at its fair value | (In thousands) FY19 Plan FY18 Plan Hi-Tec Plan Total Balance, February 3, 2018 — 1,031 2,501 3,532 Restructuring charges 5,755 — — 5,755 Payments during the period (2,995 ) (987 ) (2,302 ) (6,284 ) Balance, February 2, 2019 $ 2,760 $ 44 $ 199 $ 3,003 Restructuring charges 1,134 — — 1,134 Payments during the period (2,245 ) (44 ) (171 ) (2,460 ) Balance, February 1, 2020 $ 1,649 $ — $ 28 $ 1,677 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Debt Disclosure [Abstract] | |
Principal repayments during next two years relating to outstanding borrowings | Principal repayments to be made during the next two years relating to outstanding borrowings under the term loans and the Junior Notes are as follows: (Dollars in thousands) Repayment on Principal Fiscal 2021 1,400 Fiscal 2022 56,475 Total future principal repayments $ 57,875 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of future minimum commitments under non-cancellable operating leases | . Future minimum commitments under non-cancellable operating leases as of February 1, 2020 are as follows: (In thousands) Operating Leases Fiscal 2021 $ 430 Fiscal 2022 442 Fiscal 2023 425 Fiscal 2024 434 Fiscal 2025 333 Total future minimum lease payments 2,064 Less imputed interest (381 ) Present value of operating lease liabilities $ 1,683 |
Schedule of future minimum lease payments | Future minimum lease payments prior to the Company’s adoption of Topic 842 as of February 2, 2019 were as follows: (Dollars in thousands) Operating Leases Fiscal 2020 $ 854 Fiscal 2021 865 Fiscal 2022 876 Fiscal 2023 857 Fiscal 2024 863 Thereafter 1,673 Total future minimum lease payments $ 5,988 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Equity [Abstract] | |
Schedule of loan amounts provided and stock warrants issued to investors | (Dollars in thousands) Term Loan and Junior Note Amounts Stock Warrant Shares Term Loan lenders, unrelated parties $ 40,000 397,666 Additional Term Loan lenders, unrelated parties 5,250 230,000 Cove Street Capital, LLC, large stockholder 9,000 415,000 Jess Ravich, board member and large stockholder 4,400 118,333 Henry Stupp, Chief Executive Officer and board member 100 — $ 58,750 1,160,999 |
Schedule of outstanding stock warrants | Year Ended February 1, 2020 February 2, 2019 Outstanding Stock Warrant Shares Average Exercise Price Per Share Outstanding Stock Warrant Shares Average Exercise Price Per Share Unexercisable warrants issued to licensee 26,667 $ 30.00 26,667 $ 30.00 Exercisable warrants issued to licensee 13,333 30.00 13,333 30.00 Warrants issued to junior note holders 170,369 6.75 585,370 3.03 Warrants issued in private placement 108,898 12.66 108,898 12.66 Warrants issued to term loan lenders 627,666 1.68 627,666 1.68 946,933 $ 5.06 1,361,934 $ 3.96 |
Schedule of assumptions under the Black-Scholes option-pricing model for estimation of fair value of options | Year End February 2, 2019 Expected dividend yield — % Expected volatility 67.8 to 84.5 Risk-free interest rate 2.4% to 2.6 % Expected life (in years) 3.0 to 3.7 Estimated forfeiture rate —% to 10.0 % |
Summary of activity for stock options | (Dollar amounts in thousands, except per share amounts) Shares Weighted Average Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, at February 3, 2018 125,113 $ 31.79 4.2 — Granted 35,333 $ 1.77 Exercised — $ — Canceled/forfeited (21,611 ) $ 34.01 Outstanding, at February 2, 2019 138,835 $ 23.80 3.5 — Granted — — Exercised — $ — Canceled/forfeited (63,111 ) 38.04 Outstanding, at February 1, 2020 75,724 $ 11.94 3.3 — Vested and Exercisable at February 1, 2020 66,168 $ 11.95 2.8 — |
Summary of information about restricted stock and performance stock units activity | Number of Shares Weighted Average Grant-Date Fair Value Unvested stock at February 3, 2018 70,995 $ 22.92 Granted 328,205 2.27 Vested (116,251 ) 11.31 Forfeited (48,298 ) 9.74 Unvested stock at February 2, 2019 234,651 $ 2.49 Granted 206,367 1.77 Vested (277,588 ) 1.93 Forfeited (26,323 ) 3.60 Unvested stock at February 1, 2020 137,107 $ 2.33 |
Taxes on Income (Tables)
Taxes on Income (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of loss before income taxes | Geographic sources of loss before income taxes are as follows: Year Ended (In thousands) February 1, 2020 February 2, 2019 United States $ (4,490 ) $ (7,399 ) Foreign (9,342 ) (2,239 ) Loss before income taxes $ (13,832 ) $ (9,638 ) |
Schedule of income tax provision as shown in the income statements | The provision for income taxes as shown in the accompanying consolidated statements of operations includes the following: Year Ended (In thousands) February 1, 2020 February 2, 2019 Current: Federal $ — $ — State 79 (11 ) Foreign 1,029 941 1,108 930 Deferred: Federal — — State (27 ) 37 Foreign (3,413 ) 934 (3,440 ) 971 $ (2,332 ) $ 1,901 |
Schedule of reconciliation of the actual income tax rates to the federal statutory rate | The provision for income taxes differs from the amounts computed using the statutory United States federal income tax rate as shown in the table below. Nondeductible transaction costs arose in the Hi-Tec Acquisition. Year Ended (In thousands, except percentages) February 1, 2020 February 2, 2019 Tax expense at U.S. statutory rate $ (2,905 ) 21.0 % $ (2,023 ) 21.0 % State income taxes, net of federal income tax benefit 443 (3.2 ) 265 (2.7 ) Stock-based compensation 151 (1.1 ) 262 (2.7 ) Adjustments to unrecognized tax benefits (2,769 ) 20.0 (380 ) 3.9 Nondeductible expenses 6 — 12 (0.1 ) Nondeductible transaction costs — — 21 (0.2 ) Valuation allowance 3,388 (24.5 ) 4,616 (47.9 ) Foreign Taxes 630 (4.6 ) 381 (4.0 ) Indefinite-lived intangible assets (1,429 ) 10.3 (787 ) 8.2 Other 153 (1.1 ) (466 ) 4.8 $ (2,332 ) 16.8 % $ 1,901 (19.7 )% |
Summary of deferred income tax assets | A summary of deferred income tax assets and liabilities is as follows: Year Ended (In thousands) February 1, 2020 February 2, 2019 Deferred tax assets: Deferred revenue $ 16 $ 9 Amortization 1,576 3,855 Other 271 359 Employee compensation 106 242 Interest expense carryforward 1,844 1,277 Net operating loss and credit carryforwards 31,095 26,089 Valuation Allowance (34,759 ) (31,472 ) Total deferred income tax assets 149 359 Deferred tax liabilities: Amortization (9,664 ) (11,627 ) Total deferred income tax liabilities (9,664 ) (11,627 ) Net deferred income tax liabilities $ (9,515 ) $ (11,268 ) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | The Company recorded a $3.9 million reserve for uncertain tax positions in Fiscal 2017 as part of Hi-Tec acquisition. Gross unrecognized tax benefits are reflected in the accompanying balance sheets as reductions in deferred tax assets or in other long-term liabilities if there are no net operating loss carryforwards available to offset them. The Company was granted approval in Fiscal 2020 to combine certain of its subsidiaries in the Netherlands as one tax filing group. This determination allowed the Company to recognize certain tax benefits from uncertain tax positions taken in prior years. A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows: Year Ended (In thousands) February 1, 2020 February 2, 2019 Gross unrecognized tax benefits at beginning of year $ 3,416 $ 3,846 Additions: Tax positions taken in the current year — 426 Reductions: Tax positions taken in prior years (2,729 ) (261 ) Lapse in statute of limitations — (595 ) Gross unrecognized tax benefits at year end $ 687 $ 3,416 |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Segment Reporting [Abstract] | |
Schedule of revenues by geographic area based upon the licensees' country of domicile | Year Ended (In thousands) February 1, 2020 February 2, 2019 U.S. and Canada $ 5,223 $ 6,383 EMEA ( 1) 5,229 8,015 Asia and Pacific 7,168 6,046 Latin America 3,421 4,000 Total $ 21,041 $ 24,444 (1) |
Correction of an Immaterial E_2
Correction of an Immaterial Error in Prior Period Financial Statements (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Accounting Changes And Error Corrections [Abstract] | |
Impact of the Correction on the Consolidated Statement of Operations and Balance sheet | The impact of the correction on the Company’s consolidated statement of operations and balance sheet for the fiscal year ended February 2, 2019 is as follows (there was no impact on total operating cash flows in the consolidated statement of cash flows): Year Ended February 2, 2019 (in thousands, except per share amounts) As Reported As Revised Provision for income taxes $ 2,688 $ 1,901 Net loss $ (12,326 ) $ (11,539 ) Net loss per share: Basic $ (2.62 ) $ (2.45 ) Diluted $ (2.62 ) $ (2.45 ) February 2, 2019 (in thousands) As Reported As Revised Deferred income taxes $ 12,055 $ 11,268 Total liabilities $ 78,776 $ 77,989 Total stockholders’ equity $ 14,335 $ 15,122 |
Unaudited Quarterly Results (Ta
Unaudited Quarterly Results (Tables) | 12 Months Ended |
Feb. 01, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of unaudited financial information by quarter | A summary of quarterly financial data (unaudited) is presented below, which includes the correction to net (loss) income and basic and diluted (loss) earnings per share for the fourth quarter of Fiscal 2019 to reflect the $0.8 million immaterial correction related to income taxes. (See Note 14 above). Fiscal 2020 (In thousands, except per share data) May 4, 2019 August 3, 2019 November 2, 2019 February 1, 2020 Revenues $ 5,052 $ 5,603 $ 4,894 $ 5,492 Net loss before income taxes (1,620 ) (571 ) (6,136 ) (5,505 ) Net (loss) income (2,258 ) (1,267 ) (6,828 ) (1,147 ) Basic (loss) earnings per share (1) (0.44 ) (0.23 ) (1.23 ) (0.21 ) Diluted (loss) earnings per share (1) (0.44 ) (0.23 ) (1.23 ) (0.21 ) Fiscal 2019 (In thousands, except per share data) May 5, 2018 August 4, 2018 November 3, 2018 February 2, 2019 Revenues $ 5,402 $ 7,073 $ 5,842 $ 6,127 Net (loss) earnings before income taxes (1,903 ) (8,002 ) 154 113 Net (loss) income (2,741 ) (9,053 ) 63 192 Basic (loss) earnings per share (1) (0.59 ) (1.94 ) 0.01 0.04 Diluted (loss) earnings per share (1) (0.59 ) (1.94 ) 0.01 0.04 (1 ) Quarterly computations of per share amounts are made independently and, as a result, the sum of per share amounts for the four quarters in any one fiscal year may not add to the per share amount for such fiscal year. |
Company Business and Summary _3
Company Business and Summary of Significant Accounting Policies (Details) $ in Thousands | Apr. 20, 2020USD ($) | Sep. 27, 2019shares | Feb. 02, 2019USD ($)shares | Feb. 04, 2018USD ($) | Feb. 01, 2020USD ($)shares | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($)shares | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($)shares | Feb. 02, 2019USD ($)shares | Sep. 26, 2019shares |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Right-of-use assets | $ 1,600 | $ 1,600 | |||||||||||||
Operating lease obligations | 1,683 | 1,683 | |||||||||||||
NOL carryback claims expected | $ 8,000 | $ 8,000 | |||||||||||||
Reverse stock split ratio | 0.3333 | ||||||||||||||
Reverse stock split description | On September 27, 2019, the Company effected a one-for-three reverse stock split (the “Reverse Stock Split”) of its common stock. | ||||||||||||||
Common stock outstanding | shares | 5,500,000 | 16,600,000 | |||||||||||||
Common stock, shares authorized | shares | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 30,000,000 | ||||||||
Cumulative effect on adoption of ASC 606 | $ 275 | ||||||||||||||
Revenue | $ 5,492 | $ 4,894 | $ 5,603 | $ 5,052 | $ 6,127 | $ 5,842 | $ 7,073 | $ 5,402 | $ 21,041 | 24,444 | |||||
Deferred revenue | $ 2,200 | 3,800 | 2,200 | 3,800 | 2,200 | ||||||||||
Revenue recognized | 1,600 | 2,700 | |||||||||||||
Accrued revenue | 1,400 | 2,200 | 1,400 | 2,200 | 1,400 | ||||||||||
Aggregate minimum licensing revenue | $ 50,000 | ||||||||||||||
Contractual Rights On Revenue Recognized Period | 10 years | ||||||||||||||
Income taxes | |||||||||||||||
Maximum percentage of tax benefit upon ultimate settlement | 50.00% | ||||||||||||||
Selling, General and Administrative Expense | |||||||||||||||
Marketing, advertising and promotional costs | |||||||||||||||
Marketing, advertising and promotional costs | $ 1,300 | 1,000 | |||||||||||||
Prepaid Expenses and Other Assets | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Current portion of accrued revenue | $ 500 | 500 | |||||||||||||
ASU 2014-09 | Adjustment | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Cumulative effect on adoption of ASC 606 | $ 300 | ||||||||||||||
Revenue | $ 900 | 1,100 | |||||||||||||
ASU 2016-13 | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Description | In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (“Topic 326”). For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. This new standard is effective for the Company’s fiscal year ending January 30, 2021 (‘‘Fiscal 2021’’). The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements, but does not expect the impact to be material. | ||||||||||||||
ASU 2016-02 | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
New Accounting Pronouncement or Change in Accounting Principle, Description | In March 2016, the FASB issued authoritative guidance which modified existing guidance for off-balance sheet treatment of a lessee’s operating leases (“Topic 842”). The standard requires a lessee to recognize assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset is recognized related to the right to use the underlying asset, and a liability is recognized related to the obligation to make lease payments over the term of the lease. These amounts are determined based on the present value of the lease payments over the lease term. The standard also requires expanded disclosures about leases. The Company adopted this standard as of the beginning of Fiscal 2020, electing the transition option that allowed it not to restate the comparative periods in its financial statements in the year of adoption and to carry forward its historical assessment of whether contracts are, or contain, leases, along with its historical assessment of lease classifications and initial direct costs. | ||||||||||||||
Right-of-use assets | 4,600 | 4,600 | 4,600 | ||||||||||||
Operating lease obligations | 4,700 | 4,700 | 4,700 | ||||||||||||
Leasehold Improvements | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Estimated useful lives | Over their estimated useful lives or related lease term, whichever is shorter. | ||||||||||||||
Promissory Notes to Bank | Subsequent Event | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Proceeds from promissory note | $ 700 | ||||||||||||||
Senior Secured Credit Facility | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Adjusted level of earnings before interest tax depreciation and amortization | 9,500 | ||||||||||||||
Minimum cash balance | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||
Percentage of additional fee payable on outstanding loan balance, when debt is repaid | 2.00% | ||||||||||||||
Minimum | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Length of fiscal year | 364 days | ||||||||||||||
Estimated useful life | 3 years | ||||||||||||||
Maximum | |||||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||||
Length of fiscal year | 371 days | ||||||||||||||
Estimated useful life | 7 years |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 5,491 | $ 4,990 |
Allowance for doubtful accounts | (529) | (627) |
Net accounts receivable | $ 4,962 | $ 4,363 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 3,293 | $ 3,671 |
Less: Accumulated depreciation | (2,974) | (3,051) |
Property and Equipment, net | 319 | 620 |
Computer Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 609 | 642 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 370 | 276 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | 1,902 | 1,946 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment, gross | $ 412 | $ 807 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Intangible assets subject to amortization: | ||
Intangible assets, Gross value | $ 79,710 | $ 84,586 |
Accumulated amortization | (20,600) | (19,835) |
Intangible Assets, Net (Excluding Goodwill), Total | 59,110 | 64,751 |
Trademarks | ||
Intangible assets not subject to amortization: | ||
Gross Value and Carrying Value | 49,557 | 56,687 |
Trademarks | ||
Intangible assets subject to amortization: | ||
Gross Value | 30,153 | 27,899 |
Accumulated amortization | (20,600) | (19,835) |
Carrying Value | $ 9,553 | $ 8,064 |
Intangible Assets - Annual Impa
Intangible Assets - Annual Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Nov. 02, 2019 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 28, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible assets, net | $ 59,110 | $ 64,751 | ||
Impairment charges | $ 5,000 | |||
Trademarks | Hi-Tech | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible assets, net | $ 52,400 | |||
Trademarks, Interceptor Brand | ||||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||||
Intangible assets, carrying value | $ 2,100 |
Intangible Assets - Expected Am
Intangible Assets - Expected Amortization Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Expected amortization expense | ||
2021 | $ 0.7 | |
2022 | 0.7 | |
2023 | 0.6 | |
2024 | 0.6 | |
2025 | 0.6 | |
Amortization of Intangible Assets | $ 0.8 | $ 0.8 |
Intangible Assets - Weighted Av
Intangible Assets - Weighted Average Period (Details) $ in Thousands | 12 Months Ended |
Feb. 01, 2020USD ($) | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Weighted-average amortization period | 10 years |
Trademarks | |
Acquired Finite Lived Intangible Assets [Line Items] | |
Residual values | $ 0 |
Weighted-average amortization period | 10 years |
Intangible Assets - Trademark R
Intangible Assets - Trademark Renewal (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Trademarks | ||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | ||
Registration and renewal cost | $ 0.1 | $ 0.1 |
Intangible Assets - Weighted-Av
Intangible Assets - Weighted-Average Useful Life (Details) | 12 Months Ended |
Feb. 01, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Weighted-average useful life | 10 years |
Intangible Assets - Goodwill (D
Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Jan. 28, 2017 | |
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill | $ 12,152 | $ 16,252 | |
Historical Acquisitions and HiTec Acquisition [Member] | |||
Finite Lived And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||
Goodwill impairment charges | 4,100 | ||
Goodwill | $ 16,300 | ||
Goodwill estimated fair value | $ 12,200 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Other Liabilities Current [Abstract] | ||
Accounts payable | $ 2,814 | $ 3,120 |
Accrued employee compensation and benefits | 413 | 376 |
Restructuring plan liabilities | 1,677 | 3,003 |
Income taxes payable | 291 | 473 |
Other liabilities | 1,087 | 862 |
Total accounts payable and other current liabilities | $ 6,282 | $ 7,834 |
Restructuring Plans (Details)
Restructuring Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Payments for restructuring plan obligations | ||
Severance costs | $ 78 | $ 1,241 |
Contract termination costs | 79 | 3,314 |
Leases, net of sublease | 931 | 469 |
Service costs | 46 | 731 |
Restructuring charges | 1,134 | 5,755 |
Balance at beginning of period | 3,003 | 3,532 |
Restructuring charges | 1,134 | 5,755 |
Payments during the period | (2,460) | (6,284) |
Balance at end of period | 1,677 | 3,003 |
FY19 Plan | ||
Payments for restructuring plan obligations | ||
Restructuring charges | 1,134 | 5,755 |
Balance at beginning of period | 2,760 | |
Restructuring charges | 1,134 | 5,755 |
Payments during the period | (2,245) | (2,995) |
Balance at end of period | 1,649 | 2,760 |
FY18 Plan | ||
Payments for restructuring plan obligations | ||
Balance at beginning of period | 44 | 1,031 |
Payments during the period | (44) | (987) |
Balance at end of period | 44 | |
Hi-Tec Plan | ||
Payments for restructuring plan obligations | ||
Balance at beginning of period | 199 | 2,501 |
Payments during the period | (171) | (2,302) |
Balance at end of period | $ 28 | $ 199 |
Debt (Details)
Debt (Details) - USD ($) | Feb. 01, 2020 | Dec. 31, 2019 | Feb. 02, 2019 | Aug. 03, 2018 | Feb. 01, 2020 | Jan. 30, 2019 | Dec. 28, 2018 |
Debt | |||||||
Issuance of subordinated promissory note for lease termination | $ 275,000 | ||||||
Fiscal 2021 | $ 1,400,000 | 1,400,000 | |||||
Fiscal 2022 | 56,475,000 | 56,475,000 | |||||
Total future principal repayments | $ 57,875,000 | $ 57,875,000 | |||||
Junior Participation Interests | |||||||
Debt | |||||||
Former credit facility | $ 11,500,000 | ||||||
Proceeds of cash from stock holders | 2,000,000 | ||||||
Subordinated Debt | |||||||
Debt | |||||||
Principal amount, notes | $ 2,000,000 | ||||||
Notes repayment date | Jan. 30, 2019 | ||||||
Senior Secured Credit Facility | Term Loan | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 40,000,000 | $ 5,300,000 | |||||
Line of credit facility maturity month and year | 2021-08 | ||||||
Debt instrument, interest rate, stated percentage | 3.00% | ||||||
Line of credit facility, borrowing capacity, description | The Company is required to maintain a borrowing base comprising the value of the Company’s trademarks that exceeds the outstanding balance of the term loans. If the borrowing base is less than the outstanding term loans at any measurement period, then the Company would be required to repay a portion of the term loans to eliminate such shortfall. Events of default include, among other things, the occurrence of a change of control of the Company, and a default under the senior secured credit facility would also trigger a default under the Junior Notes agreements. The Company’s operating results for the twelve months ended November 2, 2019 and February 1, 2020 resulted in a violation of the minimum Adjusted EBITDA covenant, which is an event of default. However, the Company’s lender has agreed to forbear from enforcing its rights under the senior secured credit facility through July 27, 2020. (See Note 1, Liquidity and Going Concern.) | ||||||
Senior Secured Credit Facility | Junior Notes | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 13,500,000 | ||||||
Issuance of subordinated promissory note for lease termination | $ 300,000 | ||||||
Line of credit facility maturity month and year | 2021-11 | ||||||
Debt instrument periodic amortization payment interest | $ 0 | ||||||
Senior Secured Credit Facility | Term Loan, Junior Notes and Additional Subordinated Promissory Note | |||||||
Debt | |||||||
Debt instrument, interest rate, stated percentage | 11.00% | 11.00% | |||||
Senior Secured Credit Facility | Term Loan and Junior Notes | |||||||
Debt | |||||||
Line of credit facility, maximum amount outstanding during period | $ 57,900,000 | $ 58,600,000 | |||||
Unamortized deferred financing costs | $ 1,800,000 | $ 4,100,000 | $ 1,800,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating lease, Weighted-average remaining lease term | 4 years 10 months 24 days | |
Operating lease, Weighted-average IBR | 8.80% | |
Operating lease, right-of-use asset | $ 1,600 | |
Fiscal 2021 | 430 | |
Fiscal 2022 | 442 | |
Fiscal 2023 | 425 | |
Fiscal 2024 | 434 | |
Fiscal 2025 | 333 | |
Total future minimum lease payments | 2,064 | |
Less imputed interest | (381) | |
Present value of operating lease liabilities | 1,683 | |
Operating lease cost excluding variable lease costs and sublease income expense | $ 500 | $ 800 |
Fiscal 2020 | 854 | |
Fiscal 2021 | 865 | |
Fiscal 2022 | 876 | |
Fiscal 2023 | 857 | |
Fiscal 2024 | 863 | |
Thereafter | 1,673 | |
Total future minimum lease payments | $ 5,988 |
Stockholders' Equity - Stock wa
Stockholders' Equity - Stock warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 30, 2019 | Aug. 03, 2018 | Feb. 02, 2019 | Feb. 01, 2020 |
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 1,361,934 | 946,933 | ||
Exercise price of warrants | $ 3.96 | $ 5.06 | ||
Initial term | 7 years | |||
Fair value of stock warrants | $ 1,200 | |||
Term Loan | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 397,666 | |||
Exercise price of warrants | $ 1.35 | |||
Junior Notes | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 533,333 | |||
Exercise price of warrants | $ 1.50 | |||
Additional Term Loan | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 230,000 | |||
Exercise price of warrants | $ 2.28 | |||
Maximum borrowing capacity | $ 5,300 | |||
Initial term | 7 years | |||
Lenders | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 1,160,999 | |||
Term Loan and Junior Note Amounts | $ 58,750 | |||
Lenders | Term Loan Lenders, Unrelated Parties | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 397,666 | |||
Term Loan and Junior Note Amounts | $ 40,000 | |||
Lenders | Additional Term Loan Lenders, Unrelated Parties | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 230,000 | |||
Term Loan and Junior Note Amounts | $ 5,250 | |||
Lenders | Cove Street Capital, LLC, Large Stockholder | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 415,000 | |||
Term Loan and Junior Note Amounts | $ 9,000 | |||
Lenders | Jess Ravich, Board Member and Large Stockholder | ||||
Class of Stock [Line Items] | ||||
Warrants issued to purchase shares of common stock | 118,333 | |||
Term Loan and Junior Note Amounts | $ 4,400 | |||
Lenders | Henry Stupp, Chief Executive Officer, Director and Board Member | ||||
Class of Stock [Line Items] | ||||
Term Loan and Junior Note Amounts | $ 100 |
Stockholders' Equity - Outstand
Stockholders' Equity - Outstanding Stock Warrants (Details) - $ / shares | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Stock Warrant Shares | 946,933 | 1,361,934 |
Average Exercise Price Per Share | $ 5.06 | $ 3.96 |
Exercise Price Per Share | $ 1.50 | $ 1.50 |
Warrants | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock warrants of shares exercised | 415,000 | 118,333 |
Unexercisable warrants issued to licensee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Stock Warrant Shares | 26,667 | 26,667 |
Average Exercise Price Per Share | $ 30 | $ 30 |
Exercisable warrants issued to licensee | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Stock Warrant Shares | 13,333 | 13,333 |
Average Exercise Price Per Share | $ 30 | $ 30 |
Warrants issued to Junior Note holders | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Stock Warrant Shares | 170,369 | 585,370 |
Average Exercise Price Per Share | $ 6.75 | $ 3.03 |
Warrants issued in private placement | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Stock Warrant Shares | 108,898 | 108,898 |
Average Exercise Price Per Share | $ 12.66 | $ 12.66 |
Warrants issued to term loan lenders | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding Stock Warrant Shares | 627,666 | 627,666 |
Average Exercise Price Per Share | $ 1.68 | $ 1.68 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options And Related Valuation Assumptions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Jul. 16, 2016 | |
Stock Options | |||
Stock-Based Compensation | |||
Vesting period | 3 years | ||
Stock-based compensation expense recognized (in dollars) | $ 1 | $ 0.9 | |
Assumptions | |||
Expected Volatility, Minimum (as a percent) | 67.80% | ||
Expected Volatility, Maximum (as a percent) | 84.50% | ||
Risk-Free Interest Rate, Minimum (as a percent) | 2.40% | ||
Risk-Free Interest Rate, Maximum (as a percent) | 2.60% | ||
Estimated Forfeiture Rate (as a percent) | 10.00% | ||
Stock Options | Minimum | |||
Stock-Based Compensation | |||
Expiration period | 7 years | ||
Assumptions | |||
Expected life (in years) | 3 years | ||
Stock Options | Maximum | |||
Stock-Based Compensation | |||
Expiration period | 10 years | ||
Assumptions | |||
Expected life (in years) | 3 years 8 months 12 days | ||
2013 Plan | |||
Stock-Based Compensation | |||
Number of shares of common stock authorized that were previously reserved but unissued under 2006 Plan | 400,000 | ||
Future grants of common stock authorized | 157,496 |
Stockholders' Equity - Activity
Stockholders' Equity - Activity In Stock Options (Details) - Stock Options - USD ($) | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 | |
Shares | |||
Outstanding at the beginning of the period (in shares) | 138,835 | 125,113 | |
Granted (in shares) | 35,333 | ||
Cancelled/forfeited (in shares) | (63,111) | (21,611) | |
Outstanding at the end of the period (in shares) | 75,724 | 138,835 | 125,113 |
Vested and Exercisable at the end of the period (in shares) | 66,168 | ||
Weighted Average Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 23.80 | $ 31.79 | |
Granted (in dollars per share) | 1.77 | ||
Cancelled/forfeited (in dollars per share) | 38.04 | 34.01 | |
Outstanding at the end of the period (in dollars per share) | 11.94 | $ 23.80 | $ 31.79 |
Vested and Exercisable at the end of the period (in dollars per share) | $ 11.95 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Outstanding | 3 years 3 months 18 days | 3 years 6 months | 4 years 2 months 12 days |
Vested and Exercisable at the end of the period | 2 years 9 months 18 days | ||
Intrinsic value of options exercised (in dollars) | $ 0 | $ 0 | |
Fair value | |||
Weighted average grant date fair value of options granted (in dollars per share) | $ 0.32 | ||
Intrinsic value of options exercised (in dollars) | 0 | $ 0 | |
Unrecognized stock-based compensation | |||
Total fair value of vested options (in dollars) | $ 100,000 | $ 100,000 |
Stockholders' Equity - Activi_2
Stockholders' Equity - Activity In Unvested Common Shares (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Restricted Stock Units | Non-executive Directors | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant of restricted stock units to compensate non-executive directors services | $ 0.4 | |
Performance Stock Units | ||
Number of Shares | ||
Granted (in shares) | 0 | 0 |
Restricted Stock and Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense (in dollars) | $ 0.5 | $ 0.7 |
Number of Shares | ||
Unvested stock at the beginning of the period (in shares) | 234,651 | 70,995 |
Granted (in shares) | 206,367 | 328,205 |
Vested (in shares) | (277,588) | (116,251) |
Forfeited (in shares) | (26,323) | (48,298) |
Unvested stock at the end of the period (in shares) | 137,107 | 234,651 |
Weighted Average Grant-Date Fair Value | ||
Unvested stock at the beginning of the period (in dollars per share) | $ 2.49 | $ 22.92 |
Granted (in dollars per share) | 1.77 | 2.27 |
Vested (in dollars per share) | 1.93 | 11.31 |
Forfeited (in dollars per share) | 3.60 | 9.74 |
Unvested stock at the end of the period (in dollars per share) | $ 2.33 | $ 2.49 |
Unrecognized stock-based compensation | ||
Unrecognized stock-based compensation expense (in dollars) | $ 0.3 | |
Weighted average period for recognition of unrecognized stock-based compensation expense | 1 year 8 months 12 days |
Significant Contracts and Con_2
Significant Contracts and Concentrations of Risk (Details) | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Revenues | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Concentration risk (as a percent) | 70.00% | 66.00% |
Customer Concentration Risk | Accounts receivable | Two Licensees | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Concentration risk (as a percent) | 29.00% | |
Customer Concentration Risk | Accounts receivable | Four Licensees | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Concentration risk (as a percent) | 45.00% | |
Customer Concentration Risk | Revenues | Two Licensees | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Concentration risk (as a percent) | 27.00% | |
Customer Concentration Risk | Revenues | One Licensees | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Concentration risk (as a percent) | 10.00% |
Taxes on Income - Loss before i
Taxes on Income - Loss before income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | ||||||||||
United States | $ (4,490) | $ (7,399) | ||||||||
Foreign | (9,342) | (2,239) | ||||||||
Loss before income taxes | $ (5,505) | $ (6,136) | $ (571) | $ (1,620) | $ 113 | $ 154 | $ (8,002) | $ (1,903) | $ (13,832) | $ (9,638) |
Taxes on Income - Current And D
Taxes on Income - Current And Deferred Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Current: | ||
State | $ 79 | $ (11) |
Foreign | 1,029 | 941 |
Current income tax expense | 1,108 | 930 |
Deferred: | ||
State | (27) | 37 |
Foreign | (3,413) | 934 |
Deferred tax expense (benefit) | (3,440) | 971 |
Tax provision | $ (2,332) | $ 1,901 |
Taxes on Income - Reconciliatio
Taxes on Income - Reconciliation Of Actual Tax Rate To Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Reconciliation of actual tax rate to federal statutory rate | ||
Tax expense at U.S. statutory rate | $ (2,905) | $ (2,023) |
State income taxes, net of federal income tax benefit | 443 | 265 |
Stock-based compensation | 151 | 262 |
Adjustments to unrecognized tax benefits | (2,769) | (380) |
Nondeductible expenses | 6 | 12 |
Nondeductible transaction costs | 21 | |
Valuation allowance | 3,388 | 4,616 |
Foreign Taxes | 630 | 381 |
Indefinite-lived intangible assets | (1,429) | (787) |
Other | 153 | (466) |
Tax provision | $ (2,332) | $ 1,901 |
Tax expense at U.S. statutory rate | 21.00% | 21.00% |
State income taxes, net of federal income tax benefit | (3.20%) | (2.70%) |
Stock-based compensation | (1.10%) | (2.70%) |
Adjustments to unrecognized tax benefits | 20.00% | 3.90% |
Nondeductible expenses | (0.10%) | |
Nondeductible transaction costs | (0.20%) | |
Valuation allowance | (24.50%) | (47.90%) |
Foreign Taxes | (4.60%) | (4.00%) |
Indefinite-lived intangible assets | 10.30% | 8.20% |
Other | (1.10%) | 4.80% |
Tax provision | 16.80% | (19.70%) |
Taxes on Income - Deferred Tax
Taxes on Income - Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 |
Deferred tax assets: Non-Current | ||
Deferred revenue | $ 16 | $ 9 |
Amortization | 1,576 | 3,855 |
Other | 271 | 359 |
Employee compensation | 106 | 242 |
Interest expense carryforward | 1,844 | 1,277 |
Net operating loss and credit carryforwards | 31,095 | 26,089 |
Valuation Allowance | (34,759) | (31,472) |
Total deferred income tax assets | 149 | 359 |
Deferred tax liabilities: Non-Current | ||
Amortization | (9,664) | (11,627) |
Total deferred income tax liabilities | (9,664) | (11,627) |
Net deferred tax assets | ||
Net deferred income tax liabilities | $ (9,515) | $ (11,268) |
Taxes on Income - Additional In
Taxes on Income - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | Feb. 01, 2020 | |
Income Tax Examination [Line Items] | |||
Federal net operating loss carryforwards | $ 44.2 | $ 44.2 | |
State net operating loss carryforwards | 19.4 | 19.4 | |
Federal net operating loss carryforwards that do not expire | 27.1 | 27.1 | |
Federal net operating loss carryforwards that expire in 2026 | 17.1 | 17.1 | |
Foreign net operating loss carryforwards | 68.3 | 68.3 | |
Foreign tax and other credit carryforwards | 4.1 | 4.1 | |
Valuation allowance provided during the year to reduce the carrying value of the underlying deferred tax assets | 12.9 | ||
Deferred tax assets | 0 | 0 | |
Valuation Allowance | 21.9 | $ 21.9 | |
Federal tax | |||
Income Tax Examination [Line Items] | |||
Period of statute of limitations | 3 years | ||
State tax | |||
Income Tax Examination [Line Items] | |||
Period of statute of limitations | 4 years | ||
Incorrect Exchange Rate Used | |||
Income Tax Examination [Line Items] | |||
Overstatement of income tax provision and deferred tax liability | $ 0.8 | $ 0.8 |
Taxes on Income - Unrecognized
Taxes on Income - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 01, 2020 | Feb. 02, 2019 | Jan. 28, 2017 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Gross unrecognized tax benefits at beginning of year | $ 3,416 | $ 3,846 | |
Additions, Tax positions taken in the current year | 426 | ||
Reductions, Tax positions taken in prior years | (2,729) | (261) | |
Lapse in statute of limitations | (595) | ||
Gross unrecognized tax benefits at year end | 687 | 3,416 | |
Interest reversal (benefit) expense recognized related to unrecognized tax benefits | (100) | $ 100 | |
Total amount of anticipated decrease in unrecognized tax benefits in the next 12 months, minimum | 700 | ||
Amount of unrecognized tax benefit that, if recognized, would affect the effective tax rate | $ 400 | $ 3,900 |
Defined Contribution Plan (Deta
Defined Contribution Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Compensation And Retirement Disclosure [Abstract] | ||
Costs of matching contributions | $ 0.1 | $ 0.2 |
Defined contribution plan, sponsor location [extensible list] | country:US | country:US |
Defined contribution plan, tax status [extensible list] | us-gaap:QualifiedPlanMember | us-gaap:QualifiedPlanMember |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020USD ($) | Nov. 02, 2019USD ($) | Aug. 03, 2019USD ($) | May 04, 2019USD ($) | Feb. 02, 2019USD ($) | Nov. 03, 2018USD ($) | Aug. 04, 2018USD ($) | May 05, 2018USD ($) | Feb. 01, 2020USD ($)Segment | Feb. 02, 2019USD ($) | |
Segment Reporting | ||||||||||
Reportable segment | Segment | 1 | |||||||||
Revenues | $ 5,492 | $ 4,894 | $ 5,603 | $ 5,052 | $ 6,127 | $ 5,842 | $ 7,073 | $ 5,402 | $ 21,041 | $ 24,444 |
Long-lived tangible assets | 319 | 620 | $ 319 | $ 620 | ||||||
Revenues | ||||||||||
Segment Reporting | ||||||||||
Concentration risk (as a percent) | 70.00% | 66.00% | ||||||||
U.S. and Canada | ||||||||||
Segment Reporting | ||||||||||
Revenues | $ 5,223 | $ 6,383 | ||||||||
EMEA | ||||||||||
Segment Reporting | ||||||||||
Revenues | 5,229 | 8,015 | ||||||||
Asia and Pacific | ||||||||||
Segment Reporting | ||||||||||
Revenues | 7,168 | 6,046 | ||||||||
Latin America | ||||||||||
Segment Reporting | ||||||||||
Revenues | 3,421 | 4,000 | ||||||||
United States | ||||||||||
Segment Reporting | ||||||||||
Long-lived tangible assets | 200 | 200 | 200 | 200 | ||||||
Non-US | ||||||||||
Segment Reporting | ||||||||||
Long-lived tangible assets | $ 200 | $ 400 | $ 200 | $ 400 |
Correction of an Immaterial E_3
Correction of an Immaterial Error in Prior Period Financial Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Incorrect Exchange Rate Used | ||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||
Overstatement of both income tax provision and deferred tax liability | $ 0.8 | $ 0.8 |
Correction of an Immaterial E_4
Correction of an Immaterial Error in Prior Period Financial Statements - Impact of the Correction on the Consolidated Statement of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||||||||
Provision for income taxes | $ (2,332) | $ 1,901 | ||||||||
Net loss | $ (1,147) | $ (6,828) | $ (1,267) | $ (2,258) | $ 192 | $ 63 | $ (9,053) | $ (2,741) | $ (11,500) | $ (11,539) |
Net loss per share: | ||||||||||
Basic | $ (0.21) | $ (1.23) | $ (0.23) | $ (0.44) | $ 0.04 | $ 0.01 | $ (1.94) | $ (0.59) | $ (2.12) | $ (2.45) |
Diluted | $ (0.21) | $ (1.23) | $ (0.23) | $ (0.44) | $ 0.04 | $ 0.01 | $ (1.94) | $ (0.59) | $ (2.12) | $ (2.45) |
Remeasurement of Deferred Tax Liability, or Naked Credit | As Reported | ||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||||||||
Provision for income taxes | $ 2,688 | |||||||||
Net loss | $ (12,326) | |||||||||
Net loss per share: | ||||||||||
Basic | $ (2.62) | |||||||||
Diluted | $ (2.62) | |||||||||
Remeasurement of Deferred Tax Liability, or Naked Credit | As Revised | ||||||||||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | ||||||||||
Provision for income taxes | $ 1,901 | |||||||||
Net loss | $ (11,539) | |||||||||
Net loss per share: | ||||||||||
Basic | $ (2.45) | |||||||||
Diluted | $ (2.45) |
Correction of an Immaterial E_5
Correction of an Immaterial Error in Prior Period Financial Statements - Impact of the Correction on the Consolidated Statement of Balance sheet (Details) - USD ($) $ in Thousands | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 03, 2018 |
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||
Deferred income taxes | $ 9,515 | $ 11,268 | |
Total liabilities | 77,575 | 77,989 | |
Total stockholders’ equity | $ 5,347 | 15,122 | $ 24,115 |
Remeasurement of Deferred Tax Liability, or Naked Credit | As Reported | |||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||
Deferred income taxes | 12,055 | ||
Total liabilities | 78,776 | ||
Total stockholders’ equity | 14,335 | ||
Remeasurement of Deferred Tax Liability, or Naked Credit | As Revised | |||
Error Corrections And Prior Period Adjustments Restatement [Line Items] | |||
Deferred income taxes | 11,268 | ||
Total liabilities | 77,989 | ||
Total stockholders’ equity | $ 15,122 |
Unaudited Quarterly Results - A
Unaudited Quarterly Results - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Feb. 01, 2020 | Feb. 02, 2019 | |
Incorrect Exchange Rate Used | ||
Effect Of Fourth Quarter Events [Line Items] | ||
Immaterial correction related to income taxes | $ 0.8 | $ 0.8 |
Unaudited Quarterly Results (De
Unaudited Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Feb. 02, 2019 | Nov. 03, 2018 | Aug. 04, 2018 | May 05, 2018 | Feb. 01, 2020 | Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenues | $ 5,492 | $ 4,894 | $ 5,603 | $ 5,052 | $ 6,127 | $ 5,842 | $ 7,073 | $ 5,402 | $ 21,041 | $ 24,444 |
Net (loss) earnings before income taxes | (5,505) | (6,136) | (571) | (1,620) | 113 | 154 | (8,002) | (1,903) | (13,832) | (9,638) |
Net (loss) income | $ (1,147) | $ (6,828) | $ (1,267) | $ (2,258) | $ 192 | $ 63 | $ (9,053) | $ (2,741) | $ (11,500) | $ (11,539) |
Basic (loss) earnings per share | $ (0.21) | $ (1.23) | $ (0.23) | $ (0.44) | $ 0.04 | $ 0.01 | $ (1.94) | $ (0.59) | $ (2.12) | $ (2.45) |
Diluted (loss) earnings per share | $ (0.21) | $ (1.23) | $ (0.23) | $ (0.44) | $ 0.04 | $ 0.01 | $ (1.94) | $ (0.59) | $ (2.12) | $ (2.45) |