☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 98-1566891 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
3240 Hillview Palo Alto, CA | 94304 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, $0.0001 par value per share | ENJY | The Nasdaq Stock Market LLC | ||
Warrants to purchase common stock | ENJYW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item | ||||||
Item | ||||||
Item | 44 | |||||
Item 4. | ||||||
Item 5. | 45 | |||||
Item 6. | ||||||
Item | ||||||
Item 7A. | ||||||
Item 8. | ||||||
Item 9. | ||||||
100 | ||||||
Item | 100 | |||||
Item 9B. | 103 | |||||
Item 9C. | 103 | |||||
PART III | ||||||
Item 10. | 104 | |||||
Item 11. | 109 | |||||
Item 12. | ||||||
Item 13. | ||||||
Item 14. | ||||||
Item 15. | 123 | |||||
Item 16. |
Item 1. | Business. |
Item 2. | Properties. |
Item 3. | Legal Proceedings. |
Item 4. | Mine Safety Disclosures. |
Years Ended December 31, | Change | |||||||||||||||
(dollars in thousands) | 2021 | 2020 | $ | % | ||||||||||||
Revenue | $ | 80,998 | $ | 60,323 | $ | 20,675 | 34.3 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of revenue* | 112,910 | 71,872 | $ | 41,038 | 57.1 | % | ||||||||||
Operations and technology* | 92,017 | 65,804 | $ | 26,213 | 39.8 | % | ||||||||||
General and administrative* | 57,915 | 34,274 | $ | 23,641 | 69.0 | % | ||||||||||
Total operating expenses | 262,842 | 171,950 | $ | 90,892 | 52.9 | % | ||||||||||
Loss from operations | (181,844 | ) | (111,627 | ) | $ | (70,217 | ) | 62.9 | % | |||||||
Loss on convertible loans | (27,338 | ) | (42,907 | ) | $ | 15,569 | (36.3 | )% | ||||||||
Interest expense | (8,522 | ) | (2,003 | ) | $ | (6,519 | ) | 325.5 | % | |||||||
Interest income | 6 | 276 | $ | (270 | ) | (97.8 | )% | |||||||||
Other income (expense), net | (2,993 | ) | (1,426 | ) | $ | (1,567 | ) | 109.9 | % | |||||||
Loss before provision for income taxes | (220,691 | ) | (157,687 | ) | $ | (63,004 | ) | 40.0 | % | |||||||
Provision for income taxes | (82 | ) | 97 | $ | (179 | ) | (184.5 | )% | ||||||||
Net loss | (220,609 | ) | $ | (157,784 | ) | $ | (62,825 | ) | 39.8 | % | ||||||
* | The Company reclassified certain costs within each of its operating expense line items in the consolidated statements of operations. Prior period amounts have been reclassified to conform to this presentation. These changes have no impact on the Company’s previously reported consolidated net loss or cash flows for the periods presented See Note 1 in Notes to the Consolidated Financial Statements included under “Part II, Item 8. Financial Statements and Supplementary Information” for further discussion. |
Years Ended December 31, | ||||||||
(in thousands) | 2021 | 2020 | ||||||
Net loss | $ | (220,609 | ) | $ | (157,784 | ) | ||
Add back: | ||||||||
Interest expense | 8,522 | 2,003 | ||||||
Other income (expense), net | 2,993 | 1,426 | ||||||
Provision/(benefit) for income taxes | (82 | ) | 97 | |||||
Depreciation and amortization | 4,028 | 3,138 | ||||||
Stock-based compensation | 10,558 | 1,749 | ||||||
Loss on convertible loans | 27,338 | 42,907 | ||||||
Transaction-related costs (1) | 748 | 188 | ||||||
Deduct: | ||||||||
Interest income | (6 | ) | (276 | ) | ||||
Adjusted EBITDA | $ | (166,510 | ) | $ | (106,552 | ) | ||
(1) | Consists of accounting and consulting fees related to public company readiness that did not qualify for capitalization under GAAP. |
(in thousands) | December 31, 2021 | December 31, 2020 | ||||||
Cash and cash equivalents | $ | 85,836 | $ | 58,452 | ||||
Restricted cash | 1,710 | 5,494 | ||||||
Accounts receivable, net | 9,977 | 4,544 |
Assets | ||||
Current assets: | ||||
Cash | $ | 2,266,049 | ||
Prepaid expenses | 831,645 | |||
Total current assets | 3,097,694 | |||
Cash held in Trust Account | 373,750,000 | |||
Total Assets | $ | 376,847,694 | ||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||
Current liabilities: | ||||
Accounts payable | $ | 578,902 | ||
Accrued expenses | 488,824 | |||
Total current liabilities | 1,067,726 | |||
Deferred underwriting commissions | 13,081,250 | |||
Derivative warrant liabilities | 27,249,130 | |||
Total liabilities | 41,398,106 | |||
Commitments and Contingencies | 0 | |||
Class A ordinary shares, $0.0001 par value; 37,375,000 shares subject to possible redemption at $10.00 per share | 373,750,000 | |||
Shareholders’ Deficit | ||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding | 0 | |||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 0 nonredeemable shares issued and outstanding | 0 | |||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 9,343,750 shares issued and outstanding | 934 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (38,301,346 | ) | ||
Total shareholders’ deficit | (38,300,412 | ) | ||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 376,847,694 | ||
December 31, | ||||||||
2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 85,836 | $ | 58,452 | ||||
Restricted cash | 1,710 | 5,494 | ||||||
Accounts receivable, net | 9,977 | 4,544 | ||||||
Prepaid expenses and other current assets | 4,159 | 2,774 | ||||||
Total current assets | 101,682 | 71,264 | ||||||
Property and equipment, net | 15,945 | 14,074 | ||||||
Intangible assets, net | 867 | 967 | ||||||
Other assets | 6,631 | 4,905 | ||||||
Total assets | $ | 125,125 | $ | 91,210 | ||||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 6,102 | $ | 3,222 | ||||
Accrued expenses and other current liabilities | 20,110 | 17,897 | ||||||
Short-term debt | 0 | 2,105 | ||||||
Total current liabilities | 26,212 | 23,224 | ||||||
Long-term debt, net of discount | 0 | 41,578 | ||||||
Long-term convertible loan, at fair value (related party carrying value of $20.0 million) | 0 | 86,357 | ||||||
Derivative warrant liabilities | 6,577 | 806 | ||||||
Total liabilities | 32,789 | 151,965 | ||||||
COMMITMENTS AND CONTINGENCIES (Note 17) | 0 | 0 | ||||||
REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||||||
Redeemable convertible preferred stock, $0.00001 par value, 51,634,130 shares authorized, 0 and 51,518,255 shares issued and outstanding at December 31, 2021 and 2020, respectively; and aggregate liquidation preference of $0 and $362.1 million as of December 31, 2021 and 2020, respectively | 0 | 353,692 | ||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Common stock, $0.0001 par value, 500,000,000 shares authorized; 119,624,679 and 21,416,436 shares issued and outstanding at December 31, 2021 and 2020, respectively | 12 | 1 | ||||||
Additional paid-in capital | 734,142 | 6,601 | ||||||
Accumulated other comprehensive income | 724 | 884 | ||||||
Accumulated deficit | (642,542 | ) | (421,933 | ) | ||||
Total stockholders’ deficit | 92,336 | (414,447 | ) | |||||
Total liabilities, redeemable convertible preferred stock and stockholders’ deficit | $ | 125,125 | $ | 91,210 | ||||
General and administrative expenses | $ | 127,691 | ||
Loss from operations | (127,691 | ) | ||
Other income (expenses) | ||||
Change in fair value of derivative warrant liabilities | (3,758,500 | ) | ||
Transaction costs—derivative warrant liabilities | (946,010 | ) | ||
Net loss | $ | (4,832,201 | ) | |
Weighted average Class A ordinary shares outstanding, basic and diluted | 8,625,000 | |||
Basic and diluted net loss per ordinary share, Class A | $ | (0.28 | ) | |
Weighted average Class B ordinary shares outstanding, basic and diluted | 8,406,250 | |||
Basic and diluted net loss per ordinary share, Class B | $ | (0.28 | ) | |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 80,998 | $ | 60,323 | ||||
Operating expenses: | ||||||||
Cost of revenue | 112,910 | 71,872 | ||||||
Operations and technology | 92,017 | 65,804 | ||||||
General and administrative | 57,915 | 34,274 | ||||||
Total operating expenses | 262,842 | 171,950 | ||||||
Loss from operations | (181,844 | ) | (111,627 | ) | ||||
Loss on convertible loans | (27,338 | ) | (42,907 | ) | ||||
Interest expense | (8,522 | ) | (2,003 | ) | ||||
Interest income | 6 | 276 | ||||||
Other expense, net | (2,993 | ) | (1,426 | ) | ||||
Loss before provision for income taxes | (220,691 | ) | (157,687 | ) | ||||
Provision/(benefit) for income taxes | (82 | ) | 97 | |||||
Net loss | $ | (220,609 | ) | $ | (157,784 | ) | ||
Other comprehensive loss, net of tax | ||||||||
Cumulative translation adjustment | (160 | ) | 695 | |||||
Total comprehensive loss | $ | (220,769 | ) | $ | (157,089 | ) | ||
Net loss per share, basic and diluted | $ | (4.65 | ) | $ | (7.40 | ) | ||
Weighted average shares used in computing net loss per share, basic and diluted | 47,449,095 | 21,311,844 | ||||||
Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Shares (1) | Amount | Shares (1) | Amount | |||||||||||||||||||||||||||||
Balances at December 31, 2019 | 51,518,255 | $ | 353,692 | 21,140,014 | $ | 1 | $ | 3,162 | $ | 189 | $ | (264,149 | ) | $ | (260,797 | ) | ||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | 276,422 | — | 333 | — | — | 333 | ||||||||||||||||||||||||
Issuance of warrants | — | — | — | — | 1,357 | — | — | 1,357 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,749 | — | — | 1,749 | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | 695 | — | 695 | ||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (157,784 | ) | (157,784 | ) | ||||||||||||||||||||||
Balances at December 31, 2020 | 51,518,255 | 353,692 | 21,416,436 | 1 | 6,601 | 884 | (421,933 | ) | (414,447 | ) | ||||||||||||||||||||||
Issuance of Series C redeemable convertible preferred stock (net of issuance costs) | 1,362,099 | 15,000 | — | — | — | — | — | — | ||||||||||||||||||||||||
Conversion of redeemable convertible preferred stock into common stock in connection with the reverse recapitalization (Note 3) | (52,880,354 | ) | (368,692 | ) | 52,880,354 | 5 | 368,687 | — | — | 368,692 | ||||||||||||||||||||||
Conversion of convertible notes into common stock upon the reverse recapitalization (Note 3) | — | — | 15,163,809 | 2 | 152,111 | — | — | 152,113 | ||||||||||||||||||||||||
Conversion of warrants into common stock upon the reverse capitalization (Note 3) | — | — | 162,977 | — | — | — | — | — | ||||||||||||||||||||||||
Reclassification of preferred stock warrant liability upon the reverse recapitalization (Note 3) | — | — | — | — | 450 | — | — | 450 | ||||||||||||||||||||||||
Recapitalization, backstop financing and PIPE financing, net of issuance costs (Note 3) | — | — | 28,793,750 | 4 | 137,154 | — | — | 137,158 | ||||||||||||||||||||||||
Stockholder contribution of stock for inducement in connection with the reverse recapitalization (Note 3) | — | — | (689,113 | ) | — | — | — | — | — | |||||||||||||||||||||||
Stock issuance for inducement in connection with the reverse recapitalization (Note 3) | — | — | 689,113 | — | 20,000 | — | — | 20,000 | ||||||||||||||||||||||||
Issuance of common stock upon exercise of stock options | — | — | 1,207,353 | — | 1,799 | — | — | 1,799 | ||||||||||||||||||||||||
Gain on extinguishment of convertible loan | — | — | — | — | 36,782 | — | — | 36,782 | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 10,558 | — | — | 10,558 | ||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | — | (160 | ) | — | (160 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (220,609 | ) | (220,609 | ) | ||||||||||||||||||||||
Balances at December 31, 2021 | 0 | $ | 0 | 119,624,679 | $ | 12 | $ | 734,142 | $ | 724 | $ | (642,542 | ) | $ | 92,336 | |||||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance—October 16, 2020 (inception) | — | $ | — | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | — | — | 9,343,750 | 934 | 24,066 | — | 25,000 | |||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption | — | — | — | — | (24,066 | ) | (33,469,145 | ) | (33,493,211 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (4,832,201 | ) | (4,832,201 | ) | |||||||||||||||||||
Balance—December 31, 2020 | — | $ | — | 9,343,750 | $ | 934 | $ | 0 | $ | (38,301,346 | ) | $ | (38,300,412 | ) | ||||||||||||||
(1) | The shares of the Company’s common and redeemable convertible preferred stock, prior to the Merger (as defined in Note 1) have been retroactively restated to reflect the exchange ratio of approximately 0.34456 established in the Merger as described in Note 3. |
Cash Flows from Operating Activities: | ||||
Net loss | $ | (4,832,201 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
General and administrative expenses paid by Sponsor in exchange for issuance of Class B ordinary shares | 25,000 | |||
Change in fair value of derivative warrant liabilities | 3,758,500 | |||
Transaction costs—derivative warrant liabilities | 946,010 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (831,645 | ) | ||
Accounts payable | 578,902 | |||
Accrued expenses | 53,590 | |||
Net cash used in operating activities | (301,844 | ) | ||
Cash Flows from Investing Activities: | ||||
Cash deposited in Trust Account | (373,750,000 | ) | ||
Net cash used in investing activities | (373,750,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds received from note payable to related party | 127,850 | |||
Repayment of note payable to related party | (127,850 | ) | ||
Proceeds received from initial public offering, gross | 373,750,000 | |||
Proceeds received from private placement | 9,475,000 | |||
Reimbursement from underwriters | 2,990,000 | |||
Offering costs paid | (9,897,107 | ) | ||
Net cash provided by financing activities | 376,317,893 | |||
Net change in cash | 2,266,049 | |||
Cash—beginning of the period | 0 | |||
Cash—end of the period | $ | 2,266,049 | ||
Supplemental disclosure of noncash financing activities: | ||||
Offering costs included in accrued expenses | $ | 435,234 | ||
Deferred underwriting commissions | $ | 13,081,250 | �� |
Years ended December 31, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (220,609 | ) | $ | (157,784 | ) | ||
Adjustments to reconcile net loss to net cash used in operations: | ||||||||
Depreciation and amortization | 4,028 | 3,138 | ||||||
Loss on asset disposal | 201 | 320 | ||||||
Stock-based compensation | 10,558 | 1,749 | ||||||
Accretion of debt discount | 1,025 | 293 | ||||||
Loss on extinguishment of debt related to derecognition of unamortized debt discount | 3,293 | — | ||||||
Inducement expense in connection with the reverse recapitalization | 20,000 | — | ||||||
Revaluation of warrants | (17,269 | ) | 469 | |||||
Foreign currency transaction (gain) loss | (134 | ) | 687 | |||||
Revaluation of convertible debt | 27,338 | 42,907 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (5,440 | ) | 8,417 | |||||
Prepaid expenses and other current assets | (1,382 | ) | (115 | ) | ||||
Other assets | (1,524 | ) | (2,850 | ) | ||||
Accounts payable | 3,249 | (136 | ) | |||||
Accrued expenses and other current liabilities | 2,048 | 7,563 | ||||||
Net cash used in operating activities | (174,618 | ) | (95,342 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (6,403 | ) | (8,012 | ) | ||||
Maturities of short-term investments | — | 22,510 | ||||||
Net cash (used in) provided by investing activities | (6,403 | ) | 14,498 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from convertible loan | 75,200 | 43,451 | ||||||
Proceeds from issuance of redeemable convertible preferred stock | 15,000 | — | ||||||
Proceeds from reverse recapitalization, backstop financing and PIPE financing | 171,062 | — | ||||||
Proceeds from exercises of stock options | 1,799 | 333 | ||||||
Repayment of Blue Torch and PPP loans | (48,000 | ) | — | |||||
Payment of transaction costs related to the Transactions | (10,413 | ) | — | |||||
Payment of deferred financing costs | — | (884 | ) | |||||
Proceeds from issuance of Blue Torch loan and warrants | — | 35,790 | ||||||
Proceeds from PPP loan | — | 10,000 | ||||||
Payment of TriplePoint loan | — | (10,263 | ) | |||||
Net cash provided by financing activities | 204,648 | 78,427 | ||||||
Effect of exchange rate on cash, cash equivalents and restricted cash | (27 | ) | 349 | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 23,600 | (2,068 | ) | |||||
Cash, cash equivalents and restricted cash, beginning of year | 63,946 | 66,014 | ||||||
Cash, cash equivalents and restricted cash, end of year | $ | 87,546 | $ | 63,946 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Cash paid during the year for interest | $ | 4,155 | $ | 2,003 | ||||
Cash paid during the year for income taxes | $ | 18 | $ | 97 | ||||
Supplemental disclosure of non-cash financing activity: | ||||||||
Conversion of redeemable preferred stock to common stock | $ | 368,692 | $ | — | ||||
Issuance of common stock related to convertible debt | $ | 152,113 | $ | — | ||||
Reclassification of redeemable convertible preferred stock warrant liability to equity | $ | 450 | $ | — | ||||
Deferred success fee | $ | — | $ | 1,000 | ||||
Property and equipment, net included in accounts payable | $ | 118 | $ | — | ||||
Non-cash interest | $ | 4,367 | $ | 565 | ||||
Gain on extinguishment of convertible loan | $ | 36,782 | $ | — | ||||
Derivative warrant liabilities recognized upon the closing of the Transactions | $ | 23,491 | $ | — |
As of December 31, 2020 | As Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 376,847,694 | $ | 376,847,694 | ||||||||
Total liabilities | $ | 41,398,106 | $ | 41,398,106 | ||||||||
Class A ordinary shares subject to redemption at $10.00 per share | $ | 330,449,580 | $ | 43,300,420 | $ | 373,750,000 | ||||||
Preference shares | 0 | 0 | 0 | |||||||||
Class A ordinary shares | 433 | (433 | ) | 0 | ||||||||
Class B ordinary shares | 934 | 0 | 934 | |||||||||
Additional paid-in capital | 9,830,842 | (9,830,842 | ) | 0 | ||||||||
Accumulated deficit | (4,832,201 | ) | (33,469,145 | ) | (38,301,346 | ) | ||||||
Total shareholders’ equity (deficit) | $ | 5,000,008 | $ | (43,300,420 | ) | $ | (38,300,412 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | $ | 376,847,694 | $ | 0 | $ | 376,847,694 | ||||||
Shares of Class A ordinary shares subject to redemption | 33,044,958 | 4,330,042 | 37,375,000 | |||||||||
Shares of Class A ordinary shares | 4,330,042 | (4,330,042 | ) | 0 |
Supplemental Disclosure of Noncash Financing Activities | ||||||||||||
Initial value of Class A ordinary shares subject to possible redemption | $ | 333,685,710 | $ | (333,685,710 | ) | $ | 0 | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (3,236,130 | ) | $ | 3,236,130 | $ | 0 |
Earnings Per Share | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
For the Period from October 16, 2020 (Inception) through December 31, 2020 | ||||||||||||
Net loss | $ | (4,832,201 | ) | $ | 0 | $ | (4,832,201 | ) | ||||
Weighted average shares outstanding - Class A ordinary shares | 37,375,000 | (28,750,000 | ) | 8,625,000 | ||||||||
Basic and diluted loss per share - Class A ordinary shares | $ | 0 | $ | (0.28 | ) | $ | (0.28 | ) | ||||
Weighted average shares outstanding - Class B ordinary shares | 8,429,688 | (23,438 | ) | 8,406,250 | ||||||||
Basic and diluted loss per share - Class B ordinary shares | $ | (0.57 | ) | $ | 0.29 | $ | (0.28 | ) |
As of December 17, 2020 | As Reported, As Revised | Adjustment | As Restated | |||||||||
Total assets | $ | 375,776,800 | $ | 375,776,800 | ||||||||
Total liabilities | $ | 37,091,089 | $ | 37,091,089 | ||||||||
Class A ordinary shares subject to redemption at $10.00 per share | $ | 333,685,710 | $ | 40,064,290 | $ | 373,750,000 | ||||||
Preference shares | 0 | 0 | 0 | |||||||||
Class A ordinary shares | 401 | (401 | ) | 0 | ||||||||
Class B ordinary shares | 934 | 0 | 934 | |||||||||
Additional paid-in capital | 5,995,328 | (5,995,328 | ) | 0 | ||||||||
Accumulated deficit | (996,662 | ) | (34,068,561 | ) | (35,065,223 | ) | ||||||
Total shareholders’ equity (deficit) | $ | 5,000,001 | $ | (40,064,290 | ) | $ | (35,064,289 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | $ | 375,776,800 | $ | 0 | $ | 375,776,800 | ||||||
Shares of Class A ordinary shares subject to redemption | 33,368,571 | 4,006,429 | 37,375,000 | |||||||||
Shares of Class A ordinary shares | 4,006,429 | (4,006,429 | ) | 0 |
1. | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
Gross Proceeds for initial public offering and over-allotment | $ | 375,750,000 | ||
Less: | — | |||
Offering costs allocated to Class A shares subject to possible redemption | (19,477,581 | ) | ||
Proceeds allocated to Public Warrants at issuance | (14,015,630 | ) | ||
Plus: | ||||
Accretion of Class A ordinary shares subject to possible redemption amount | 33,493,211 | |||
Class A ordinary shares subject to possible redemption | $ | 375,750,000 |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
December 31, | ||||||||
2021 | 2020 | |||||||
Reconciliation of cash, cash equivalents and restricted cash: | ||||||||
Cash and cash equivalents | $ | 85,836 | $ | 58,452 | ||||
Restricted cash | 1,710 | 5,494 | ||||||
Total cash, cash equivalents and restricted cash | $ | 87,546 | $ | 63,946 | ||||
Property and Equipment | Useful Life | |
Office equipment | 3 years | |
Computer equipment | 3 years | |
Vehicles | 3 years | |
Vehicle equipment | 4 years | |
Leasehold improvements | Shorter of estimated life of the asset or remaining lease term | |
Furniture and fixtures | 5 years |
Chargebacks | ||||
Balance as of January 1, 2020 | $ | 2,178 | ||
Provision | 8,981 | |||
Credits/payments made | (5,763 | ) | ||
Balance as of December 31, 2020 | 5,396 | |||
Provision | 16,841 | |||
Credits/payments made | (13,646 | ) | ||
Balance as of December 31, 2021 | $ | 8,591 | ||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Risk-free interest rate | 0.86 | % | 1.18 | % | ||||
Expected term (in years) | 5.95 | 6.01 | ||||||
Expected volatility | 59.5 | % | 48.4 | % | ||||
Expected dividend yield | 0 | % | — | % | ||||
Fair value of common stock | $ | 9.02 | $ | 2.59 |
3. | REVERSE RECAPITALIZATION |
Number of Shares | ||||
Common stock of MRAC, outstanding prior to Merger | 46,718,750 | |||
Less redemption of MRAC shares | (31,875,906 | ) | ||
Common stock of MRAC | 14,842,844 | |||
Shares issued in PIPE financing | 8,000,000 | |||
Shares issued in Backstop financing | 5,500,906 | |||
Shares issued for deferred underwriting fees | 450,000 | |||
Merger, PIPE financing, and Backstop financing shares | 28,793,750 | |||
Legacy Enjoy shares | 90,828,116 | |||
Total shares of common stock immediately after Merger | 119,621,866 | |||
4. | FAIR VALUE MEASUREMENTS |
Fair Value Measurements at December 31, 2021 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Derivative warrant liabilities—Public | $ | 3,924 | $ | 0 | $ | 0 | $ | 3,924 | ||||||||
Derivative warrants liabilities—Private | 0 | 2,653 | 0 | 2,653 | ||||||||||||
Total financial liabilities | $ | 3,924 | $ | 2,653 | $ | 0 | $ | 6,577 | ||||||||
Fair Value Measurements at December 31, 2020 Using: | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: | ||||||||||||||||
Redeemable convertible preferred stock warrant liability | $ | 0 | $ | 0 | $ | 806 | $ | 806 | ||||||||
Convertible loan | 0 | 0 | 86,357 | 86,357 | ||||||||||||
Total financial liabilities | $ | 0 | $ | 0 | $ | 87,163 | $ | 87,163 | ||||||||
Convertible Loans | Redeemable Convertible Preferred Stock Warrant Liability | |||||||
Balance at January 1, 2020 | $ | 0 | $ | 337 | ||||
Issuance of convertible loan | 43,450 | 0 | ||||||
Change in fair value | 42,907 | 469 | ||||||
Balance at December 31, 2020 | 86,357 | 806 | ||||||
Debt extinguishment of convertible loans | (36,782 | ) | 0 | |||||
Proceeds from issuance of convertible loans | 75,200 | 0 | ||||||
Change in fair value | 27,338 | (356 | ) | |||||
Warrant reclassification to equity | 0 | (450 | ) | |||||
Conversion of convertible loans | (152,113 | ) | 0 | |||||
Balance at December 31, 2021 | $ | 0 | $ | 0 | ||||
5. | PROPERTY AND EQUIPMENT, NET |
December 31, | ||||||||
2021 | 2020 | |||||||
Leasehold improvements | $ | 20,446 | $ | 16,512 | ||||
Furniture and fixtures | 2,173 | 1,438 | ||||||
Office equipment | 591 | 356 | ||||||
Computer equipment | 107 | 81 | ||||||
Vehicles | 66 | 66 | ||||||
Vehicle equipment | 283 | — | ||||||
23,666 | 18,453 | |||||||
Less: accumulated depreciation | (7,721 | ) | (4,379 | ) | ||||
Property and equipment, net | $ | 15,945 | $ | 14,074 | ||||
6. | INTANGIBLE ASSETS, NET |
December 31, | ||||||||
2021 | 2020 | |||||||
Domain Name | $ | 1,500 | 1,500 | |||||
Less: accumulated amortization | (633 | ) | (533 | ) | ||||
Intangible assets, net | $ | 867 | $ | 967 | ||||
Years Ending December 31, | ||||
2022 | $ | 100 | ||
2023 | 100 | |||
2024 | 100 | |||
2025 | 100 | |||
2026 | 100 | |||
Thereafter | 367 | |||
Total estimated future amortization expense | $ | 867 | ||
7. | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
December 31, | ||||||||
2021 | 2020 | |||||||
Accrued salaries and wages | $ | 8,677 | $ | 8,088 | ||||
Deferred rent | 3,552 | 3,876 | ||||||
Accrued payables | 5,296 | 2,774 | ||||||
Accrued tax | 1,259 | 2,210 | ||||||
Accrued vacation and benefits | 1,181 | 813 | ||||||
Accrued other | 145 | 136 | ||||||
Total accrued expenses and other current liabilities | $ | 20,110 | $ | 17,897 | ||||
8. | DEBT |
9. | STOCK WARRANTS |
December 31, | ||||||||
2021 | 2020 | |||||||
Public warrants | $ | 3,924 | $ | 0 | ||||
Private placement warrants | 2,653 | 0 | ||||||
Redeemable convertible preferred stock warrant | 0 | 806 | ||||||
Total warrant liabilities | $ | 6,577 | $ | 806 | ||||
Balance at January 1, 2020 | $ | 337 | ||
Change in fair value | 469 | |||
Balance at December 31, 2020 | 806 | |||
Change in fair value | (356 | ) | ||
Reclassification to equity | (450 | ) | ||
Balance at December 31, 2021 | $ | 0 | ||
10. | REDEEMABLE CONVERTIBLE PREFERRED STOCK |
Preferred Shares Authorized | Preferred Shares Issued and Outstanding | Issuance Price Per Share | Conversion Price Per Share | Carrying Value | Liquidation Preference | |||||||||||||||||||
Series Seed | 3,521,368 | 3,521,368 | $ | 1.0367 | $ | 1.0367 | $ | 3,651 | $ | 3,651 | ||||||||||||||
Series A | 8,027,737 | 8,027,737 | 3.3011 | 3.3011 | 26,371 | 26,500 | ||||||||||||||||||
Series B | 26,464,034 | 26,348,159 | 6.9039 | 6.9039 | 181,592 | 181,906 | ||||||||||||||||||
Series C | 13,620,991 | 13,620,991 | 11.0124 | 11.0124 | 142,078 | 150,000 | ||||||||||||||||||
Total | 51,634,130 | 51,518,255 | $ | 353,692 | $ | 362,057 | ||||||||||||||||||
11. | COMMON STOCK |
December 31, | ||||||||
2021 | 2020 | |||||||
Conversion of redeemable convertible preferred stock | 0 | 51,518,255 | ||||||
Exercise of public warrants and private placement warrants | 15,660,417 | 0 | ||||||
Warrants to purchase redeemable convertible and common stock preferred stock | 115,875 | 279,329 | ||||||
Awards outstanding under the equity incentive plans | 14,401,983 | 7,881,625 | ||||||
Awards available for future grant under the equity incentive plans | 6,673,256 | 4,425,966 | ||||||
Awards available for future grant under the employee stock purchase plan | 2,383,437 | 0 | ||||||
Total | 39,234,968 | 64,105,175 | ||||||
12. | STOCK-BASED COMPENSATION |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities | $ | 0 | $ | 0 | $ | 27,249,130 |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Cost of revenue | $ | 239 | $ | 34 | ||||
Operations and technology | 1,248 | 631 | ||||||
General and administrative | 9,071 | 1,084 | ||||||
Total stock-based compensation expense | $ | 10,558 | $ | 1,749 | ||||
Number of Shares | Weighted Average Exercise Price | Remaining Contractual Term (In Years) | Aggregate Intrinsic Value | |||||||||||||
Balance at January 1, 2020 | 7,450,921 | $ | 1.68 | 8.49 | $ | 6,783 | ||||||||||
Options granted | 1,457,219 | 2.59 | ||||||||||||||
Options exercised | (276,325 | ) | 1.19 | |||||||||||||
Options cancelled | (751,083 | ) | 2.15 | |||||||||||||
Balance at December 31, 2020 | 7,880,732 | 1.82 | 7.71 | $ | 51,134 | |||||||||||
Options granted | 3,524,789 | 9.02 | ||||||||||||||
Options exercised | (1,207,353 | ) | 1.49 | |||||||||||||
Options cancelled | (1,354,871 | ) | 5.84 | |||||||||||||
Balance at December 31, 2021 | 8,843,297 | 4.12 | 6.75 | $ | 16,632 | |||||||||||
Options exercisable as of December 31, 2021 | 5,288,359 | 2.27 | ||||||||||||||
Vested and expected to vest—December 31, 2021 | 8,843,297 | $ | 4.12 | |||||||||||||
As of December 17, 2020 | As of December 31, 2020 | |||||||
Volatility | 22.4 | % | 21.7 | % | ||||
Stock price | $ | 10.45 | $ | 10.40 | ||||
Expected life of the options to convert | 5.5 | 5.5 | ||||||
Risk-free rate | 0.45 | % | 0.43 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
Number of RSUs | Weighted- Average Grant Date Fair Value per Share | |||||||
Balance at December 31, 2020 | 0 | $ | 0 | |||||
Granted | 5,651,274 | 5.58 | ||||||
Released | 0 | 0 | ||||||
Cancelled/forfeited | (52,526 | ) | 10.05 | |||||
Balance at December 31, 2021 | 5,598,748 | $ | 5.54 | |||||
Derivative warrant liabilities at October 16, 2020 (inception) | $ | 0 | ||
Issuance of Public and Private Warrants | 23,490,630 | |||
Change in fair value of derivative warrant liabilities | 3,758,500 | |||
Derivative warrant liabilities at December 31, 2020 | $ | 27,249,130 | ||
9 3 |
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Federal statutory rate | 21.0 | % | 21.0 | % | ||||
Effect of: | ||||||||
State statutory rate, net of federal tax benefit | 3.2 | % | 3.0 | % | ||||
Foreign tax | 0.3 | % | (2.6 | )% | ||||
Change in valuation allowance | (22.1 | )% | (16.2 | )% | ||||
Loss on convertible loan | (2.6 | )% | (5.0 | )% | ||||
Warrants | 1.6 | % | 0 | |||||
Other | (1.4 | %) | (0.3 | )% | ||||
Total | 0.0 | % | (0.1 | )% | ||||
Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Current provision: | ||||||||
Federal | $ | 0 | $ | 0 | ||||
State | 23 | 22 | ||||||
Foreign | 461 | 75 | ||||||
Total current provision | 484 | 97 | ||||||
Deferred provision: | ||||||||
Federal | 0 | 0 | ||||||
State | 0 | 0 | ||||||
Foreign | (566 | ) | 0 | |||||
Total deferred provision/(benefit) | (566 | ) | 0 | |||||
Provision/(benefit) for income taxes | $ | (82 | ) | $ | 97 | |||
December 31, | ||||||||
2021 | 2020 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 141,216 | $ | 96,646 | ||||
Stock-based compensation | 1,597 | 139 | ||||||
Accruals and reserves | 947 | 323 | ||||||
Property and equipment | 977 | 568 | ||||||
163(j) interest limitation | 2,125 | 0 | ||||||
Total deferred tax asset before valuation allowance | 146,862 | 97,676 | ||||||
Valuation allowance | (146,308 | ) | (97,676 | ) | ||||
Deferred tax assets, net of valuation allowance | $ | 554 | $ | 0 | ||||
Gross unrecognized tax benefits at January 1, 2020 | $ | 3,609 | ||
Increase for tax positions during 2020 | 1,763 | |||
Gross unrecognized tax benefits at December 31, 2020 | 5,372 | |||
Gross increase for tax positions during 2021 | 2,864 | |||
Gross decrease for tax positions during 2021 | (321 | ) | ||
Gross unrecognized tax benefits at December 31, 2021 | $ | 7,915 | ||
14. | NET LOSS PER SHARE |
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
Numerator: | ||||||||
Net loss | $ | (220,609 | ) | $ | (157,784 | ) | ||
Denominator: | ||||||||
Weighted-average common shares outstanding—basic and diluted | 47,449,095 | 21,311,844 | ||||||
Net loss per share—basic and diluted | $ | (4.65 | ) | $ | (7.40 | ) | ||
December 31, | ||||||||
2021 | 2020 | |||||||
Conversion of redeemable convertible preferred stock | — | 51,518,255 | ||||||
Public warrants and private placement warrants | 15,660,417 | — | ||||||
Warrants to purchase redeemable convertible preferred stock | 115,875 | 115,875 | ||||||
Options to purchase common stock | 8,843,297 | 7,880,732 | ||||||
Restricted stock units | 5,598,748 | — | ||||||
Conversion of convertible loan | — | 4,034,163 | ||||||
Total common stock equivalents | 30,218,337 | 63,549,025 | ||||||
15. | SEGMENT INFORMATION |
For the Year Ended December 31, 2021 | ||||||||||||
North America | Europe | Total | ||||||||||
Revenue | $ | 68,460 | $ | 12,538 | $ | 80,998 | ||||||
Segment loss | (103,334 | ) | (28,522 | ) | (131,856 | ) | ||||||
Unallocated corporate expenses: | ||||||||||||
Operations and technology | (13,783 | ) | ||||||||||
General and administrative | (36,205 | ) | ||||||||||
Loss from operations | $ | (181,844 | ) | |||||||||
For the Year Ended December 31, 2020 | ||||||||||||
North America | Europe | Total | ||||||||||
Revenue | $ | 46,593 | $ | 13,730 | $ | 60,323 | ||||||
Segment loss | (64,669 | ) | (18,167 | ) | (82,836 | ) | ||||||
Unallocated corporate expenses: | ||||||||||||
Operations and technology | (12,879 | ) | ||||||||||
General and administrative | (15,912 | ) | ||||||||||
Loss from operations | $ | (111,627 | ) | |||||||||
Year Ended December 31, | ||||||||
2021 | 2020 | |||||||
United States | 86 | % | 90 | % | ||||
Canada | 14 | % | 10 | % | ||||
100 | % | 100 | % | |||||
As of December 31, | ||||||||
2021 | 2020 | |||||||
North America | $ | 11,267 | $ | 7,920 | ||||
Europe | 4,678 | 6,154 | ||||||
Total long-lived assets | $ | 15,945 | $ | 14,074 | ||||
16. | EMPLOYEE BENEFIT PLANS |
17. | COMMITMENTS AND CONTINGENCIES |
Years Ending December 31, | ||||
2022 | $ | 16,765 | ||
2023 | 13,352 | |||
2024 | 10,779 | |||
2025 | 7,323 | |||
2026 | 3,410 | |||
Thereafter | 187 | |||
Total minimum lease payments | $ | 51,816 | ||
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure. |
Item 9A. | Controls and Procedures. |
privileged access to financial applications and data to appropriate personnel; (iii) computer operations controls to ensure that critical batch jobs are monitored, and data backups are authorized and monitored; and (iv) testing and approval controls for program development to ensure that new software development is aligned with business and IT requirements. These IT deficiencies did not result in a misstatement to the financial statements, however, the deficiencies, when aggregated, could impact our ability to maintain effective segregation of duties, as well as the effectiveness of IT-dependent controls (such as automated controls that address the risk of material misstatement to one or more assertions, along with the IT controls and underlying data that support the effectiveness of system-generated data and reports) that could result in misstatements potentially impacting all financial statement accounts and disclosures that would result in a material misstatement to the annual or interim financial statements that would not be prevented or detected. Accordingly, management has determined these deficiencies in the aggregate constitute a material weakness. |
Item 9C. | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. |
Name | Age | |||||
Executive Officers | ||||||
Co-Founder and Chief Executive Officer | ||||||
Chief Financial Officer | ||||||
Director, Chief | ||||||
38 | Chief Legal Officer and Corporate Secretary | |||||
Non-Employee Directors | ||||||
Fred Harman (1)(3) | 61 | Director | ||||
Thomas Ricketts (2) | 56 | Director | ||||
Brett Varsov (3) | 46 | Director | ||||
Salaam Coleman Smith (3) | 52 | Director | ||||
Denise Young Smith (1)(2) | 55 | Director | ||||
(1) | Director | |||||
(1) | Member of the Audit Committee |
(2) | Member of the Compensation Committee |
(3) | Member of the Nominating and Governance Committee |
Name and Address of Beneficial Owner(1) | Number of Shares Beneficially Owned(2) | Percentage of Shares of Outstanding Class A Ordinary Shares | ||||||
Marquee Raine Acquisition Sponsor LP(3) | 9,268,750 | 19.8 | % | |||||
Crane H. Kenney | — | * | ||||||
Brett Varsov | — | * | ||||||
Alexander D. Sugarman | — | * | ||||||
Joseph Beyrouty | — | * | ||||||
Evan Ellsworth | — | * | ||||||
Jason Sondag | — | * | ||||||
Thomas Ricketts | — | * | ||||||
Brandon Gardner | — | * | ||||||
Thomas Freston | 25,000 | * | ||||||
Matthew Maloney | 25,000 | * | ||||||
Assia Grazioli-Venier | 25,000 | * | ||||||
All officers and directors as a group (11 individuals) | 9,343,750 | 20.0 | % |
Item 11. | Executive Compensation. |
Name and Principal Position | Year | Salary ($) | Bonus ($) | Stock Awards ($) (1) | Option Awards ($) (1) | Non-Equity Incentive Plan Compensation ($) | Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||||||||
Ron Johnson | 2021 | 57,600 | — | — | — | — | — | — | 57,600 | |||||||||||||||||||||||||||
Chief Executive Officer | �� | 2020 | 49,920 | — | — | — | — | — | — | 49,920 | ||||||||||||||||||||||||||
Jonathan Mariner | 2021 | 600,000 | — | 5,162,808 | 1,878,261 | — | — | 60,000 | (2) | 7,701,069 | ||||||||||||||||||||||||||
Chief Administrative Officer | 2020 | 32,308 | — | — | — | — | — | 4,615 | (2) | 36,923 | ||||||||||||||||||||||||||
Fareed Khan | 2021 | 361,539 | — | 5,162,808 | 1,887,970 | — | — | — | 7,412,317 | |||||||||||||||||||||||||||
Chief Financial Officer | 2020 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Tiffany N. Meriweather | 2021 | 250,000 | 80,356 | (3) | 4,354,130 | 1,871,812 | — | — | — | 6,556,299 | ||||||||||||||||||||||||||
Chief Legal Officer and Corporate Secretary | 2020 | — | — | — | — | — | — | — | — |
(1) | Amounts reported in this column do not reflect the amounts actually received by our named executive officers. Instead, these amounts reflect the aggregate grant date fair value of each award granted to the named executive officers during |
2021, as computed in accordance with Accounting Standards Codification 718 using the assumptions described in Note 2 to Enjoy’s audited financial statements for the year ended December 31, 2021 included elsewhere in this Report under “Part II, Item 8. Financial Statements and Supplementary Data”. As required by SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. |
(2) | Beginning with the commencement of his employment in December 2020, Mr. Mariner has received a stipend of $5,000 per month, split evenly over each pay period. |
(3) | Ms. Meriweather received a one-time bonus in connection with the commencement of her employment. |
Option Awards | Stock Awards | |||||||||||||||||||||||||||
Name | Grant Date | Number of securities underlying un-exercised options (#) exercisable | Number of securities underlying unexercised options (#) un-exercisable | Option exercise price ($) | Option expiration date | Number of shares or units of stock that have not vested (#) | Market value of shares or units of stock that have not vested ($) (1) | |||||||||||||||||||||
Ron Johnson | — | — | — | — | — | — | — | |||||||||||||||||||||
Jonathan Mariner | 2/18/21 | (2) | 103,365 | 310,102 | 8.31 | 2/18/2031 | — | — | ||||||||||||||||||||
6/30/21 | (3) | — | — | — | 143,649 | 663,658 | ||||||||||||||||||||||
12/23/21 | (4) | — | — | — | — | 531,166 | 2,453,987 | |||||||||||||||||||||
Fareed Khan | 2/18/21 | (5) | — | 413,467 | 8.31 | 2/18/2031 | — | — | ||||||||||||||||||||
6/30/21 | (6) | — | — | — | — | 191,532 | 884,878 | |||||||||||||||||||||
12/23/21 | (7) | — | — | — | — | 531,166 | 2,453,987 | |||||||||||||||||||||
Tiffany N. Meriweather | 6/30/21 | (8) | — | 344,555 | 10.02 | 6/30/2031 | — | — | ||||||||||||||||||||
6/30/21 | (9) | — | — | — | — | 184,523 | 852,496 | |||||||||||||||||||||
12/23/21 | (10) | — | — | — | — | 546,989 | 2,527,089 |
(1) | The amounts in this column were determined based on the closing market price of the Company’s common stock on December 31, 2021 of $4.62. |
(2) | Twenty-five percent of the shares subject to the stock option vested on December 1, 2021, the first anniversary of the vesting start date, and the remaining amount vests in equal monthly installments and will be fully vested on December 1, 2024, the fourth anniversary of the vesting start date, subject to continuous service through each vesting date. |
(3) | Twenty-five percent of the restricted stock units (“RSUs”) vested on December 1, 2021, with the remaining RSUs vesting in equal installments of 1/16th of the total number of RSUs quarterly thereafter, subject to continuous service through each vesting date. |
(4) | Twenty-five percent of the RSUs vested on December 10, 2021, with the remaining RSUs vesting in equal installments of 1/16th of total number of RSUs quarterly thereafter, subject to continuous service through each vesting date. |
(5) | Twenty-five percent of the shares subject to the stock option shall vest on January 25, 2022, the first anniversary of the vesting start date, and the remaining balance vests in equal monthly installments and will be fully vested on January 25, 2025, the fourth anniversary of the vesting start date, subject to continuous service through each vesting date. |
(6) | Twenty-five percent of the RSUs shall vest on January 25, 2022, with the remaining RSUs vesting in equal installments of 1/16th of the total number of RSUs quarterly thereafter, subject to continuous service through each vesting date. |
(7) | Twenty-five percent of the RSUs vested on December 10, 2021, with the remaining RSUs vesting in equal installments of 1/16th of the total number of RSUs quarterly thereafter, subject to continuous service through each vesting date. |
(8) | Twenty-five percent of the shares subject to the stock option shall vest on April 26, 2022, the first anniversary of the vesting start date, and the remaining balance vests in equal monthly installments and will be fully vested on April 26, 2025, the fourth anniversary of the vesting start date, subject to continuous service through each vesting date. |
(9) | Twenty-five percent of the RSUs shall vest on April 26, 2022, with the remaining RSUs vesting in equal installments of 1/16th of the total number of RSUs quarterly thereafter, subject to continuous service through each vesting date. |
(10) | Twenty-five percent of the RSUs shall vest on June 10, 2022, with the remaining RSUs vesting in equal installments of 1/16th of the total number of RSUs quarterly thereafter, subject to continuous service through each vesting date. |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) (1) | Total ($) | |||||||||
Fred Harman | 15,897 | 158,821 | 174,717 | |||||||||
Thomas Ricketts | 15,897 | 158,821 | 174,717 | |||||||||
Brett Varsov | 15,897 | 158,821 | 174,717 | |||||||||
Salaam Coleman Smith | 18,016 | 158,821 | 176,837 | |||||||||
Denise Young Smith | 18,546 | 158,821 | 177,367 | |||||||||
Gideon Yu | 23,315 | 158,821 | 182,136 |
(1) | Amounts listed represent the aggregate grant date fair value of awards granted during the year referenced, computed in accordance with FASB ASC Topic 718, excluding the effect of estimated forfeitures. These amounts do not reflect the actual economic value that may be realized by the director. As of December 31, 2021, each of Fred Harman, Thomas Ricketts, Brett Varsov, Salaam Coleman Smith, Denise Young Smith and Gideon Yu had outstanding stock awards with respect to 34,677 shares. |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. |
Name and Address of Beneficial Owner (1) | Number of Shares | % of Ownership | ||||||
5% or Greater Stockholders: | ||||||||
Entities affiliated with King Street Capital Management, L.P. (2) | 6,888,903 | 5.7 | % | |||||
Entities affiliated with Riverwood Capital (3) | 6,313,795 | 5.3 | % | |||||
LCH Enjoir L.P. (4) | 16,615,259 | 13.8 | % | |||||
Marquee Raine Acquisition Sponsor LP (5) | 15,585,417 | 13.0 | % | |||||
SCP Venture Fund I, L.P. (6) | 9,248,980 | 7.7 | % | |||||
Executive Officers and Directors: | ||||||||
Fred Harman (7) | 5,264,509 | 4.4 | % | |||||
Ron Johnson (8) | 19,615,172 | 16.3 | % | |||||
Fareed Khan (9) | 434,867 | * | ||||||
Jonathan Mariner (10) | 472,020 | * | ||||||
Tiffany N. Meriweather (11) | 148,141 | * | ||||||
Thomas Ricketts | — | — | ||||||
Salaam Coleman Smith | — | — | ||||||
Denise Young Smith | — | — | ||||||
Brett Varsov | — | — | ||||||
Gideon Yu (12) | 137,822 | * | ||||||
All directors and executive officers as a group (10 individuals) (13) | 26,072,521 | 21.7 | % | |||||
* | Less than one percent |
(1) | Unless otherwise noted, the business address of each of the following entities or individuals is c/o Enjoy Technology, Inc. 3240 Hillview Ave, Palo Alto, CA 94304. |
(2) | Based on a Schedule 13G filed on February 11, 2022 by King Street Capital Management, L.P. (“KSCM”), King Street Capital Management GP, L.L.C. (“KSCM GP”) and Brian J. Higgins, as of December 31, 2021, KSCM may be deemed to have beneficially owned, and to share voting and dispositive power over, a total of 6,888,903 shares of common stock and KSCM GP and Mr. Higgins may be deemed to have beneficially owned, and to share voting and dispositive power over, the common stock that may be deemed to have been beneficially owned by KSCM. The business address of KSCM, KSCM GP and Mr. Higgins is 299 Park Avenue, 40th Floor New York, NY 10171. |
(3) | Based on a Schedule 13G filed on February 15, 2022 by Riverwood Capital GP II Ltd. (“Riverwood GP”), Riverwood Capital II L.P. (“Riverwood LP”), Riverwood Capital Partners II L.P. (“RCP”) and Riverwood Capital Partners II (Parallel—B) L.P. (“RCP Parallel – B”), (i) RCP held 5,004,339 shares of common stock directly, (ii) RCP Parallel—B held 1,309,456 shares of common stock directly (together with RCP, “Riverwood Capital”) and (iii) Riverwood LP and Riverwood GP may be deemed to have voting and dispositive power over, and be deemed to be indirect beneficial owners of the common stock directly held by Riverwood Capital. The business address of Riverwood GP, Riverwood LP, RCP and RCP Parallel-B is 70 Willow Road, Suite 100, Menlo Park, CA 94025. |
(4) | LCH Partners GP L.P. is the general partner of LCH Enjoir L.P. (“LCH”) and LCH Partners Limited is the general partner of LCH Partners GP L.P. The management of LCH Partners Limited is controlled by a board of directors. The address of the entities and individuals mentioned in this footnote is 599 West Putnam Avenue, Greenwich, CT 06830. |
(5) | Based on Amendment No. 1 to Schedule 13G filed on February 8, 2022 by Marquee Raine Acquisition Sponsor LP (“Sponsor”), Marquee Raine Acquisition Sponsor GP Ltd. (“Marquee Raine GP”), Raine Holdings AIV LLC (“Raine Holdings AIV”), Raine SPAC Holdings LLC (“Raine SPAC Holdings”), Raine RR SPAC SPV I LLC (“Raine RR SPAC SPV I”), Ricketts SPAC Investment LLC (“Ricketts SPAC Investment”) and Marquee Sports Holdings SPAC 1, LLC (“Marquee Sports Holdings”), Marquee Raine GP is the general partner of Sponsor. Raine Holdings AIV is the sole member of Raine SPAC Holdings, which, in turn, is the sole member of Raine RR SPAC SPV I, which owns a 50% interest in each of Marquee Raine GP and Sponsor. Ricketts SPAC Investment is the manager of Marquee Sports Holdings, which owns a 50% interest in each of Marquee Raine GP and Sponsor. Each of the Reporting Persons named in this Schedule 13G disclaims beneficial ownership of the securities held directly or indirectly by such Reporting Persons, except to the extent of their respective pecuniary interests. The business address of each of the foregoing persons is 65 East 55th Street, 24th Floor New York, NY 10022. |
(6) | Based on a Schedule 13G filed on February 11, 2022 by Stamos Capital Partner, L.P. and Peter Stamos for beneficial ownership as of December 2021. SCP Venture GP I, LLC is the general partner of SCP Venture Fund I, L.P. (“SCP”), the sole member and manager of which is Stamos Capital Associates, LLC. The managing member of Stamos Capital Associates, LLC is Peter Stamos. As such, Mr. Stamos could be deemed to share voting control and investment power over shares that may be deemed to be beneficially owned by SCP. Mr. Stamos disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. The principal business address for all entities and individuals affiliated with SCP is 2498 Sand Hill Road, Menlo Park, California 94025. |
(7) | Mr. Harman, a director for the Company, is a managing partner of Oak Investment Partners XIII, Limited Partnership, a Delaware limited partnership (“Oak”), and, as such, may be deemed to possess shared beneficial ownership of any shares of common stock held by Oak. The business address for Oak is 901 Main Avenue, Suite 600, Norwalk, CT 06851. Mr. Harman disclaims beneficial ownership of the shares held by Oak except to the extent of his pecuniary interest in the shares. |
(8) | Consists of (i) 1,555,673 shares of common stock held by The Johnson 2011 Trust, as nominee for The Johnson 2011 Irrevocable Children’s Trust, of which Mr. Johnson is a co-trustee, and (ii) 18,059,499 shares of common stock. |
(9) | Consists of (i) 137,821 shares subject to options exercisable within 60 days of March 21, 2022, 120,593 of which were vested as of March 21, 2022 and (ii) 297,046 shares issuable pursuant to restricted stock units (“RSUs”) that will vest and settle within 60 days of March 21, 2022. |
(10) | Consists of (i) 20,602 shares of common stock held as of March 21, 2022,(ii) 146,435 shares subject to option exercisable within 60 days of March 21, 2022, 129,207 of which were vested as of March 21, 2022, and (iii) 304,983 shares issuable pursuant to RSUs that will vest and settle within 60 days of March 21, 2022. |
(11) | Consists of (i) 86,137 shares subject to options exercisable within 60 days of March 21, 2022, none of which were vested as of March 21, 2022 and (ii) 62,004 shares issuable pursuant to RSUs that will vest and settle within 60 days of March 21, 2022. |
(12) | Consists of 137,822 shares of New Enjoy common stock issuable to Mr. Yu pursuant to vested options exercisable within 60 days of March 21, 2022. |
(13) | Consists of 25,893,827 shares of common stock and 178,694 shares issuable pursuant to options or RSUs that will vest and settle within 60 days of March 21, 2022. |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted- average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | |||||||||
Equity compensation plans approved by security holders (1) | 14,442,045 | $ | — | 10,487,870 | ||||||||
Equity compensation plans not approved by security holders | — | $ | — | — | ||||||||
Total | 14,442,045 | $ | — | 10,487,870 | ||||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence. |
Name | Shares of Series C Preferred Stock | Total Purchase Price | ||||||
LCH Enjoir L.P. (1) | 39,531,941 | $ | 149,999,997 |
Number | (1) |
Name | Shares of Series B Preferred Stock | Total Purchase Price | ||||||
Ron Johnson (1) | 2,101,900 | $ | 5,000,000 | |||||
Entities affiliated with Oak Investment Partners (2) | 4,371,952 | $ | 10,399,999 | |||||
SCP Venture Fund I, L.P. | 11,875,737 | $ | 28,250,003 |
Item 14. | Principal Accounting Fees and Services. |
Item 15. | Exhibits, Financial Statement Schedules. |
1. | Financial Statements |
2. | Financial Statement Schedules |
3. | Exhibits |
32.1* | ||||||||||
32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||
Inline XBRL Instance | ||||||||||
Inline XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||||
Inline XBRL Taxonomy Extension Definition Linkbase | ||||||||||
Inline XBRL Taxonomy Extension | ||||||||||
Inline XBRL Taxonomy Extension Presentation Linkbase | ||||||||||
Cover Page Interactive Data File |
* | Filed herewith. |
** |
# | Indicates management contract or compensatory plan. |
† | S-K Item 601(b)(2) |
Item 16. | Form 10-K Summary |
ENJOY TECHNOLOGY, INC. | ||||||
Date: | By: | /s/ | ||||
Fareed Khan | ||||||
Name: Fareed Khan | ||||||
Title: Chief Financial Officer |
Name | Title | Date | ||
/s/ Ron Johnson Ron Johnson | Director and Chief Executive Officer (Principal Executive Officer) | March 25, 2022 | ||
/s/ Fareed Khan Fareed Khan | Chief Financial Officer (Principal Financial and Accounting Officer) | March 25, 2022 | ||
/s/ Jonathan Mariner Jonathan Mariner | Director and Chief Administrative Officer | March 25, 2022 | ||
/s/ Fred Harman Fred Harman | Director | March 25, 2022 | ||
/s/ Salaam Coleman Smith Salaam Coleman Smith | Director | March 25, 2022 | ||
/s/ Thomas Ricketts Thomas Ricketts | Director | March 25, 2022 | ||
/s/ Brett Varsov Brett Varsov | Director | March 25, 2022 |
/s/ Denise Young Smith Denise Young Smith | Director | March 25, 2022 | ||
/s/ Gideon Yu Gideon Yu | Director | March 25, 2022 |