| | | | Sincerely, | |
| , 2022 | | | | |
| | | | Jonathan Lin | |
| | | | Chairman of the Board of Directors | |
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| “Board” | | | means the board of directors of Magnum Opus Acquisition Limited before the Closing. | |
| “Cayman Companies Act” | | | means the Cayman Companies Act (As Revised) of the Cayman Islands. | |
| “Exchange Act” | | | means the Securities Exchange Act of 1934, as amended. | |
| “Founder Shares” | | | means the 5,000,000 Class B ordinary shares held by the Sponsor, which were acquired for an aggregate purchase price of $25,000 prior to the IPO. | |
| “GAAP” | | | means accounting principles generally accepted in the United States of America. | |
| “Initial Shareholders” | | | means Magnum Opus Holdings LLC, Jonathan Lin, Frank Han, Kevin Lee, Sammy Hsieh, Alexandre Casin, Johnny Liu Dickson Cheng and Kersten Hui. | |
| “IPO” | | | means the initial public offering of Magnum Opus, which was consummated on March 25, 2021. | |
| “New Forbes | | | means the board of directors of Magnum Opus Acquisition Limited following its name change to Forbes Global Media Holdings, Inc. at the Closing. | |
| “Optionholders” | | | means each holder of options under Forbes Global Media Holdings Inc. (BVI) Long-Term Incentive Plan, as amended from time to time, and any other plan or arrangement pursuant to which rights with respect to shares of Forbes have been granted to service providers immediately prior to the Closing. | |
| “Private Warrants” | | | means the warrants sold to Sponsor in a private placement consummated concurrently with IPO, each entitling its holder to purchase one Class A ordinary share of the Company at an exercise price of $11.50 per share, subject to adjustment. | |
| “Public Shareholders” | | | means all holders of the Public Shares. | |
| “Public Shares” | | | means Class A ordinary shares issued in the IPO. | |
| “Public Warrants” | | | means warrants issued in the IPO, each entitling its holder to purchase one Class A ordinary share of the Company at an exercise price of $11.50 per share, subject to adjustment. | |
| “Securities Act” | | | means the Securities Act of 1933, as amended. | |
| “Sponsor” | | | means Magnum Opus Management LLC. | |
| “Trust Account” | | | means the trust account of the Company that holds the proceeds from the IPO. | |
| “Units” | | | means the units issued in the IPO, each consisting of one Class A ordinary share and one-half of one Public Warrant. | |
| | | No Redemptions(1) | | | % | | | 10% Redemption(2) | | | % | | | 50% Redemption(3) | | | % | | | 75% Redemption(4) | | | % | | | Maximum Redemption(5) | | | % | | ||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | | 17,190,502 | | | | | | 21.0% | | | | | | 19,190,502 | | | | | | 23.5% | | | | | | 27,170,502 | | | | | | 33.1% | | | | | | 32,150,502 | | | | | | 39.1% | | | | | | 37,125,502 | | | | | | 45.2% | | |
Public Shareholders(7) | | | | | 20,000,000 | | | | | | 24.4% | | | | | | 18,000,000 | | | | | | 21.9% | | | | | | 10,000,000 | | | | | | 12.2% | | | | | | 5,000,000 | | | | | | 6.1% | | | | | | — | | | | | | —% | | |
Holders of Founder Shares(8) | | | | | 4,800,000 | | | | | | 5.8% | | | | | | 4,800,000 | | | | | | 5.8% | | | | | | 4,800,000 | | | | | | 5.8% | | | | | | 4,800,000 | | | | | | 5.9% | | | | | | 4,800,000 | | | | | | 5.9% | | |
PIPE-related investors(9) | | | | | 40,100,000 | | | | | | 48.8% | | | | | | 40,100,000 | | | | | | 48.8% | | | | | | 40,100,000 | | | | | | 48.9% | | | | | | 40,100,000 | | | | | | 48.9% | | | | | | 40,100,000 | | | | | | 48.9% | | |
Pro forma ordinary shares at December 31, 2021 | | | | | 82,090,502 | | | | | | 100.0% | | | | | | 82,090,502 | | | | | | 100.0% | | | | | | 82,070,502 | | | | | | 100.0% | | | | | | 82,050,502 | | | | | | 100.0% | | | | | | 82,025,502 | | | | | | 100.0% | | |
Potential sources of dilution: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | | 10,000,000 | | | | | | 12.2% | | | | | | 10,000,000 | | | | | | 12.2% | | | | | | 10,000,000 | | | | | | 12.2% | | | | | | 10,000,000 | | | | | | 12.2% | | | | | | 10,000,000 | | | | | | 12.2% | | |
Private Warrants | | | | | 6,000,000 | | | | | | 7.3% | | | | | | 6,000,000 | | | | | | 7.3% | | | | | | 6,000,000 | | | | | | 7.3% | | | | | | 6,000,000 | | | | | | 7.3% | | | | | | 6,000,000 | | | | | | 7.3% | | |
| | No Redemptions(1) | | % | | 10% Redemption(2) | | % | | 50% Redemption(3) | | % | | 75% Redemption(4) | | % | | Maximum Redemption(5) | | % | | | No Redemptions(1) | | % | | 10% Redemption(2) | | % | | 50% Redemption(3) | | % | | 75% Redemption(4) | | % | | Maximum Redemption(5) | | % | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | 17,190,502 | | | | | 21.0% | | | | | 19,190,502 | | | | | 23.5% | | | | | 27,170,502 | | | | | 33.1% | | | | | 32,150,502 | | | | | 39.1% | | | | | 37,125,502 | | | | | 45.2% | | | | | | 17,190,502 | | | | | 21.0% | | | | | 19,190,502 | | | | | 23.5% | | | | | 27,170,502 | | | | | 33.1% | | | | | 32,150,502 | | | | | 39.1% | | | | | 37,125,502 | | | | | 45.2% | | | ||||||||||||||||||||
Public Shareholders(7) | | | | 20,000,000 | | | | | 24.4% | | | | | 18,000,000 | | | | | 21.9% | | | | | 10,000,000 | | | | | 12.2% | | | | | 5,000,000 | | | | | 6.1% | | | | | — | | | | | —% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Holders of Founder Shares(8) | | | | 4,800,000 | | | | | 5.8% | | | | | 4,800,000 | | | | | 5.8% | | | | | 4,800,000 | | | | | 5.8% | | | | | 4,800,000 | | | | | 5.9% | | | | | 4,800,000 | | | | | 5.9% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Shareholders(7) | | | | 20,000,000 | | | | | 24.4% | | | | | 18,000,000 | | | | | 21.9% | | | | | 10,000,000 | | | | | 12.2% | | | | | 5,000,000 | | | | | 6.1% | | | | | — | | | | | —% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Holders of Founder Shares(8) | | | | 4,800,000 | | | | | 5.8% | | | | | 4,800,000 | | | | | 5.8% | | | | | 4,800,000 | | | | | 5.8% | | | | | 4,800,000 | | | | | 5.9% | | | | | 4,800,000 | | | | | 5.9% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PIPE-related investors(9) | | | | 40,100,000 | | | | | 48.8% | | | | | 40,100,000 | | | | | 48.8% | | | | | 40,100,000 | | | | | 48.9% | | | | | 40,100,000 | | | | | 48.9% | | | | | 40,100,000 | | | | | 48.9% | | | | | | 40,100,000 | | | | | 48.8% | | | | | 40,100,000 | | | | | 48.8% | | | | | 40,100,000 | | | | | 48.9% | | | | | 40,100,000 | | | | | 48.9% | | | | | 40,100,000 | | | | | 48.9% | | | ||||||||||||||||||||
Pro forma ordinary shares at December 31, 2021 | | | | 82,090,502 | | | | | 100.0% | | | | | 82,090,502 | | | | | 100.0% | | | | | 82,070,502 | | | | | 100.0% | | | | | 82,050,502 | | | | | 100.0% | | | | | 82,025,502 | | | | | 100.0% | | | | | | 82,090,502 | | | | | 100.0% | | | | | 82,090,502 | | | | | 100.0% | | | | | 82,070,502 | | | | | 100.0% | | | | | 82,050,502 | | | | | 100.0% | | | | | 82,025,502 | | | | | 100.0% | | | ||||||||||||||||||||
Potential sources of dilution: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||
Public Warrants | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | | | 10,000,000 | | | | | 12.2% | | | ||||||||||||||||||||
Private Warrants | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | | | | 6,000,000 | | | | | 7.3% | | |
| | | No Redemptions(1) | | | 10% Redemption(2) | | | 50% Redemption(3) | | | 75% Redemption(4) | | | Maximum Redemption(5) | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | ||||||||||||||||||||||||||||||
Base Scenario(7) | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,070,502 | | | | | $ | 10.00 | | | | | | 82,050,502 | | | | | $ | 10.00 | | | | | | 82,025,502 | | | | | $ | 10.00 | | |
Exercising Public Warrants(8)(11) | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,070,502 | | | | | $ | 8.91 | | | | | | 92,050,502 | | | | | $ | 8.91 | | | | | | 92,025,502 | | | | | $ | 8.91 | | |
Exercising Private Warrants(9)(11) | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,070,502 | | | | | $ | 9.32 | | | | | | 88,050,502 | | | | | $ | 9.32 | | | | | | 88,025,502 | | | | | $ | 9.32 | | |
Exercising Public and Private Warrants(10)(11) | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,070,502 | | | | | $ | 8.37 | | | | | | 98,050,502 | | | | | $ | 8.37 | | | | | | 98,025,502 | | | | | $ | 8.37 | | |
(in thousands, except share amounts) | | | No Redemptions | | | 10% Redemption | | | 50% Redemption | | | 75% Redemption | | | Maximum Redemption | | |||||||||||||||
Unredeemed public shares | | | | | 20,000,000 | | | | | | 18,000,000 | | | | | | 10,000,000 | | | | | | 5,000,000 | | | | | | — | | |
Trust proceeds to Forbes | | | | $ | 200,010 | | | | | $ | 180,009 | | | | | $ | 100,005 | | | | | $ | 50,002 | | | | | $ | — | | |
Deferred underwriting commission | | | | $ | 5,250 | | | | | $ | 5,250 | | | | | $ | 5,250 | | | | | $ | 5,250 | | | | | $ | 5,250 | | |
Effective deferred underwriting fee (%) | | | | | 2.62% | | | | | | 2.92% | | | | | | 5.25% | | | | | | 10.50% | | | | | | —% | | |
Effective deferred underwriting fee per share | | | | $ | 0.26 | | | | | $ | 0.29 | | | | | $ | 0.53 | | | | | $ | 1.05 | | | | | $ | — | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Revenues | | | 259,149 | | | 184,853 | | | 210,628 | | |||||||||
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to non-controlling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | | 26,370 | | | | | | 6,980 | | | | | | 6,207 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | ($, in thousands) | | |||||||||
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | | 318,086 | | | | | | 315,797 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | | 318,086 | | | | | | 315,797 | | |
| �� | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year | | | | | 45,054 | | | | | | 50,281 | | | | | | 23,370 | | |
| | | Pro Forma Combined and Consolidated | | |||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||
| | | (in thousands, except share and per share amounts) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data For the Year Ended December 31, 2021 | | | | | | | | | | | | | |
Net income attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | |
Net income per ordinary share – basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | 82,090,502 | | | | | | 82,025,502 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data As of December 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 423,191 | | | | | $ | 423,191 | | |
Total liabilities | | | | $ | 95,426 | | | | | $ | 95,426 | | |
Noncontrolling interest | | | | $ | 8,718 | | | | | $ | 8,718 | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 319,047 | | | | | $ | 319,047 | | |
Total shareholders’ equity | | | | $ | 327,765 | | | | | $ | 327,765 | | |
| | | No Redemptions(1) | | | % | | | 10% Redemption(2) | | | % | | | 50% Redemption(3) | | | % | | | 75% Redemption(4) | | | % | | | Maximum Redemption(5) | | | % | | ||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | | 17,190,502 | | | | | | 17.5% | | | | | | 19,190,502 | | | | | | 19.6% | | | | | | 27,170,502 | | | | | | 27.7% | | | | | | 32,150,502 | | | | | | 32.8% | | | | | | 37,125,502 | | | | | | 37.9% | | |
Public Shareholders(7) | | | | | 30,000,000 | | | | | | 30.6% | | | | | | 28,000,000 | | | | | | 28.5% | | | | | | 20,000,000 | | | | | | 20.4% | | | | | | 15,000,000 | | | | | | 15.3% | | | | | | 10,000,000 | | | | | | 10.2% | | |
Holders of Founder Shares(8) | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | |
PIPE-related investors(9) | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | |
Pro forma fully diluted ordinary shares at December 31, 2021 | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,070,502 | | | | | | 100.0% | | | | | | 98,050,502 | | | | | | 100.0% | | | | | | 98,025,502 | | | | | | 100.0% | | |
| | | No Redemptions(1) | | | 10% Redemption(2) | | | 50% Redemption(3) | | | 75% Redemption(4) | | | Maximum Redemption(5) | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | ||||||||||||||||||||||||||||||
Base Scenario(7) | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,070,502 | | | | | $ | 10.00 | | | | | | 82,050,502 | | | | | $ | 10.00 | | | | | | 82,025,502 | | | | | $ | 10.00 | | |
Exercising Public Warrants(8)(11) | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,070,502 | | | | | $ | 8.91 | | | | | | 92,050,502 | | | | | $ | 8.91 | | | | | | 92,025,502 | | | | | $ | 8.91 | | |
Exercising Private Warrants(9)(11) | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,070,502 | | | | | $ | 9.32 | | | | | | 88,050,502 | | | | | $ | 9.32 | | | | | | 88,025,502 | | | | | $ | 9.32 | | |
Exercising Public and Private Warrants(10)(11) | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,070,502 | | | | | $ | 8.37 | | | | | | 98,050,502 | | | | | $ | 8.37 | | | | | | 98,025,502 | | | | | $ | 8.37 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021E | | | 2022E | | ||||||
| | | ($, in millions, except for %) | | |||||||||
Pro Forma Revenue | | | | | | | | | | | | | |
Advertising | | | | | 135 | | | | | | 143 | | |
Circulation | | | | | 23 | | | | | | 27 | | |
Licensing | | | | | 21 | | | | | | 22 | | |
Events | | | | | 13 | | | | | | 20 | | |
Research | | | | | 9 | | | | | | 11 | | |
Other(1) | | | | | 10 | | | | | | 14 | | |
Total | | | | | 211 | | | | | | 237 | | |
Pro Forma Contribution Margin(2) | | | | | 64% | | | | | | 63% | | |
Pro Forma Adjusted EBITDA(3) | | | | | 44 | | | | | | 53 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 223.6 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 19.0 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 169.9 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 793.5 | | | | Total Uses | | | | $ | 793.5 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 23.5 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 18.3 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 369.3 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 792.8 | | | | Total Uses | | | | $ | 792.8 | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Revenues | | | 259,149 | | | 184,853 | | | 210,628 | | |||||||||
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to non-controlling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | | 26,370 | | | | | | 6,980 | | | | | | 6,207 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | ($, in thousands) | | |||||||||
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | | 318,086 | | | | | | 315,797 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | | 318,086 | | | | | | 315,797 | | |
| �� | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year | | | | | 45,054 | | | | | | 50,281 | | | | | | 23,370 | | |
| | | Pro Forma Combined and Consolidated | | |||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||
| | | (in thousands, except share and per share amounts) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data For the Year Ended December 31, 2021 | | | | | | | | | | | | | |
Net income attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | |
Net income per ordinary share – basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | 82,090,502 | | | | | | 82,025,502 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data As of December 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 423,191 | | | | | $ | 423,191 | | |
Total liabilities | | | | $ | 95,426 | | | | | $ | 95,426 | | |
Noncontrolling interest | | | | $ | 8,718 | | | | | $ | 8,718 | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 319,047 | | | | | $ | 319,047 | | |
Total shareholders’ equity | | | | $ | 327,765 | | | | | $ | 327,765 | | |
| | | No Redemptions(1) | | | % | | | 10% Redemption(2) | | | % | | | 50% Redemption(3) | | | % | | | 75% Redemption(4) | | | % | | | Maximum Redemption(5) | | | % | | ||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | | 17,190,502 | | | | | | 17.5% | | | | | | 19,190,502 | | | | | | 19.6% | | | | | | 27,170,502 | | | | | | 27.7% | | | | | | 32,150,502 | | | | | | 32.8% | | | | | | 37,125,502 | | | | | | 37.9% | | |
Public Shareholders(7) | | | | | 30,000,000 | | | | | | 30.6% | | | | | | 28,000,000 | | | | | | 28.5% | | | | | | 20,000,000 | | | | | | 20.4% | | | | | | 15,000,000 | | | | | | 15.3% | | | | | | 10,000,000 | | | | | | 10.2% | | |
Holders of Founder Shares(8) | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | |
PIPE-related investors(9) | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | |
Pro forma fully diluted ordinary shares at December 31, 2021 | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,070,502 | | | | | | 100.0% | | | | | | 98,050,502 | | | | | | 100.0% | | | | | | 98,025,502 | | | | | | 100.0% | | |
| | | No Redemptions(1) | | | 10% Redemption(2) | | | 50% Redemption(3) | | | 75% Redemption(4) | | | Maximum Redemption(5) | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | ||||||||||||||||||||||||||||||
Base Scenario(7) | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,070,502 | | | | | $ | 10.00 | | | | | | 82,050,502 | | | | | $ | 10.00 | | | | | | 82,025,502 | | | | | $ | 10.00 | | |
Exercising Public Warrants(8)(11) | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,070,502 | | | | | $ | 8.91 | | | | | | 92,050,502 | | | | | $ | 8.91 | | | | | | 92,025,502 | | | | | $ | 8.91 | | |
Exercising Private Warrants(9)(11) | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,070,502 | | | | | $ | 9.32 | | | | | | 88,050,502 | | | | | $ | 9.32 | | | | | | 88,025,502 | | | | | $ | 9.32 | | |
Exercising Public and Private Warrants(10)(11) | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,070,502 | | | | | $ | 8.37 | | | | | | 98,050,502 | | | | | $ | 8.37 | | | | | | 98,025,502 | | | | | $ | 8.37 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021E | | | 2022E | | ||||||
| | | ($, in millions, except for %) | | |||||||||
Pro Forma Revenue | | | | | | | | | | | | | |
Advertising | | | | | 135 | | | | | | 143 | | |
Circulation | | | | | 23 | | | | | | 27 | | |
Licensing | | | | | 21 | | | | | | 22 | | |
Events | | | | | 13 | | | | | | 20 | | |
Research | | | | | 9 | | | | | | 11 | | |
Other(1) | | | | | 10 | | | | | | 14 | | |
Total | | | | | 211 | | | | | | 237 | | |
Pro Forma Contribution Margin(2) | | | | | 64% | | | | | | 63% | | |
Pro Forma Adjusted EBITDA(3) | | | | | 44 | | | | | | 53 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 223.6 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 19.0 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 169.9 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 793.5 | | | | Total Uses | | | | $ | 793.5 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 23.5 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 18.3 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 369.3 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 792.8 | | | | Total Uses | | | | $ | 792.8 | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Revenues | | | 259,149 | | | 184,853 | | | 210,628 | | |||||||||
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to non-controlling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | | 26,370 | | | | | | 6,980 | | | | | | 6,207 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | ($, in thousands) | | |||||||||
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | | 318,086 | | | | | | 315,797 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | | 318,086 | | | | | | 315,797 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year | | | | | 45,054 | | | | | | 50,281 | | | | | | 23,370 | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Pro Forma Combined and Consolidated | | |||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||
| | | (in thousands, except share and per share amounts) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data For the Year Ended December 31, 2021 | | | | | | | | | | | | | |
Net income | | | | $ | 25,112 | | | | | $ | 25,112 | | |
Net income per ordinary share – basic and diluted | | | | $ | 0.31 | | | | | $ | 0.31 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | 82,090,502 | | | | | | 82,025,502 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data As of December 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 423,191 | | | | | $ | 423,191 | | |
Total liabilities | | | | $ | 95,426 | | | | | $ | 95,426 | | |
Total shareholders’ equity | | | | $ | 327,765 | | | | | $ | 327,765 | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Revenues | | | 259,149 | | | 184,853 | | | 210,628 | | |||||||||
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to non-controlling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | | 26,370 | | | | | | 6,980 | | | | | | 6,207 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | ($, in thousands) | | |||||||||
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | | 318,086 | | | | | | 315,797 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | | 318,086 | | | | | | 315,797 | | |
| �� | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year | | | | | 45,054 | | | | | | 50,281 | | | | | | 23,370 | | |
| | | Pro Forma Combined and Consolidated | | |||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||
| | | (in thousands, except share and per share amounts) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data For the Year Ended December 31, 2021 | | | | | | | | | | | | | |
Net income attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | |
Net income per ordinary share – basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | 82,090,502 | | | | | | 82,025,502 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data As of December 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 423,191 | | | | | $ | 423,191 | | |
Total liabilities | | | | $ | 95,426 | | | | | $ | 95,426 | | |
Noncontrolling interest | | | | $ | 8,718 | | | | | $ | 8,718 | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 319,047 | | | | | $ | 319,047 | | |
Total shareholders’ equity | | | | $ | 327,765 | | | | | $ | 327,765 | | |
| | | No Redemptions(1) | | | % | | | 10% Redemption(2) | | | % | | | 50% Redemption(3) | | | % | | | 75% Redemption(4) | | | % | | | Maximum Redemption(5) | | | % | | ||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | | 17,190,502 | | | | | | 17.5% | | | | | | 19,190,502 | | | | | | 19.6% | | | | | | 27,170,502 | | | | | | 27.7% | | | | | | 32,150,502 | | | | | | 32.8% | | | | | | 37,125,502 | | | | | | 37.9% | | |
Public Shareholders(7) | | | | | 30,000,000 | | | | | | 30.6% | | | | | | 28,000,000 | | | | | | 28.5% | | | | | | 20,000,000 | | | | | | 20.4% | | | | | | 15,000,000 | | | | | | 15.3% | | | | | | 10,000,000 | | | | | | 10.2% | | |
| | No Redemptions(1) | | % | | 10% Redemption(2) | | % | | 50% Redemption(3) | | % | | 75% Redemption(4) | | % | | Maximum Redemption(5) | | % | | | No Redemptions(1) | | % | | 10% Redemption(2) | | % | | 50% Redemption(3) | | % | | 75% Redemption(4) | | % | | Maximum Redemption(5) | | % | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Holders of Founder Shares(8 ) | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PIPE-related investors(9) | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | 17,190,502 | | | | | 17.5% | | | | | 19,190,502 | | | | | 19.6% | | | | | 27,170,502 | | | | | 27.7% | | | | | 32,150,502 | | | | | 32.8% | | | | | 37,125,502 | | | | | 37.9% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Public Shareholders(7) | | | | 30,000,000 | | | | | 30.6% | | | | | 28,000,000 | | | | | 28.5% | | | | | 20,000,000 | | | | | 20.4% | | | | | 15,000,000 | | | | | 15.3% | | | | | 10,000,000 | | | | | 10.2% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Holders of Founder Shares (8) | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | | | 10,800,000 | | | | | 11.0% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PIPE-related investors(9) | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | | | 40,100,000 | | | | | 40.9% | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pro forma fully diluted ordinary shares at December 31, 2021 | | | | 98,090,502 | | | | | 100.0% | | | | | 98,090,502 | | | | | 100.0% | | | | | 98,070,502 | | | | | 100.0% | | | | | 98,050,502 | | | | | 100.0% | | | | | 98,025,502 | | | | | 100.0% | | | | | | 98,090,502 | | | | | 100.0% | | | | | 98,090,502 | | | | | 100.0% | | | | | 98,070,502 | | | | | 100.0% | | | | | 98,050,502 | | | | | 100.0% | | | | | 98,025,502 | | | | | 100.0% | | | ||||||||||||||||||||
|
| | | No Redemptions(1) | | | 10% Redemption(2) | | | 50% Redemption(3) | | | 75% Redemption(4) | | | Maximum Redemption(5) | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | ||||||||||||||||||||||||||||||
Base Scenario(7) | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,070,502 | | | | | $ | 10.00 | | | | | | 82,050,502 | | | | | $ | 10.00 | | | | | | 82,025,502 | | | | | $ | 10.00 | | |
Exercising Public Warrants(8)(11) | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,070,502 | | | | | $ | 8.91 | | | | | | 92,050,502 | | | | | $ | 8.91 | | | | | | 92,025,502 | | | | | $ | 8.91 | | |
Exercising Private Warrants(9)(11) | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,070,502 | | | | | $ | 9.32 | | | | | | 88,050,502 | | | | | $ | 9.32 | | | | | | 88,025,502 | | | | | $ | 9.32 | | |
Exercising Public and Private Warrants(10)(11) | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,070,502 | | | | | $ | 8.37 | | | | | | 98,050,502 | | | | | $ | 8.37 | | | | | | 98,025,502 | | | | | $ | 8.37 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021E | | | 2022E | | ||||||
| | | ($, in millions, except for %) | | |||||||||
Pro Forma Revenue | | | | | | | | | | | | | |
Advertising | | | | | 135 | | | | | | 143 | | |
Circulation | | | | | 23 | | | | | | 27 | | |
Licensing | | | | | 21 | | | | | | 22 | | |
Events | | | | | 13 | | | | | | 20 | | |
Research | | | | | 9 | | | | | | 11 | | |
Other(1) | | | | | 10 | | | | | | 14 | | |
Total | | | | | 211 | | | | | | 237 | | |
Pro Forma Contribution Margin(2) | | | | | 64% | | | | | | 63% | | |
Pro Forma Adjusted EBITDA(3) | | | | | 44 | | | | | | 53 | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Revenues | | | 259,149 | | | 184,853 | | | 210,628 | | |||||||||
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to non-controlling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | | 26,370 | | | | | | 6,980 | | | | | | 6,207 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | ($, in thousands) | | |||||||||
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | | 318,086 | | | | | | 315,797 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | | 318,086 | | | | | | 315,797 | | |
| �� | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year | | | | | 45,054 | | | | | | 50,281 | | | | | | 23,370 | | |
| | | Pro Forma Combined and Consolidated | | |||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||
| | | (in thousands, except share and per share amounts) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data For the Year Ended December 31, 2021 | | | | | | | | | | | | | |
Net income attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | |
Net income per ordinary share – basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | 82,090,502 | | | | | | 82,025,502 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data As of December 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 423,191 | | | | | $ | 423,191 | | |
Total liabilities | | | | $ | 95,426 | | | | | $ | 95,426 | | |
Noncontrolling interest | | | | $ | 8,718 | | | | | $ | 8,718 | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 319,047 | | | | | $ | 319,047 | | |
Total shareholders’ equity | | | | $ | 327,765 | | | | | $ | 327,765 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 223.6 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 19.0 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 169.9 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 793.5 | | | | Total Uses | | | | $ | 793.5 | | |
| | | No Redemptions(1) | | | % | | | 10% Redemption(2) | | | % | | | 50% Redemption(3) | | | % | | | 75% Redemption(4) | | | % | | | Maximum Redemption(5) | | | % | | ||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | | 17,190,502 | | | | | | 17.5% | | | | | | 19,190,502 | | | | | | 19.6% | | | | | | 27,170,502 | | | | | | 27.7% | | | | | | 32,150,502 | | | | | | 32.8% | | | | | | 37,125,502 | | | | | | 37.9% | | |
Public Shareholders(7) | | | | | 30,000,000 | | | | | | 30.6% | | | | | | 28,000,000 | | | | | | 28.5% | | | | | | 20,000,000 | | | | | | 20.4% | | | | | | 15,000,000 | | | | | | 15.3% | | | | | | 10,000,000 | | | | | | 10.2% | | |
Holders of Founder Shares(8) | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | |
PIPE-related investors(9) | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | |
Pro forma fully diluted ordinary shares at December 31, 2021 | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,070,502 | | | | | | 100.0% | | | | | | 98,050,502 | | | | | | 100.0% | | | | | | 98,025,502 | | | | | | 100.0% | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 23.5 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 18.3 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 369.3 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 792.8 | | | | Total Uses | | | | $ | 792.8 | | |
| | | No Redemptions(1) | | | 10% Redemption(2) | | | 50% Redemption(3) | | | 75% Redemption(4) | | | Maximum Redemption(5) | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | ||||||||||||||||||||||||||||||
Base Scenario(7) | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,070,502 | | | | | $ | 10.00 | | | | | | 82,050,502 | | | | | $ | 10.00 | | | | | | 82,025,502 | | | | | $ | 10.00 | | |
Exercising Public Warrants(8)(11) | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,070,502 | | | | | $ | 8.91 | | | | | | 92,050,502 | | | | | $ | 8.91 | | | | | | 92,025,502 | | | | | $ | 8.91 | | |
Exercising Private Warrants(9)(11) | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,070,502 | | | | | $ | 9.32 | | | | | | 88,050,502 | | | | | $ | 9.32 | | | | | | 88,025,502 | | | | | $ | 9.32 | | |
Exercising Public and Private Warrants(10)(11) | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,070,502 | | | | | $ | 8.37 | | | | | | 98,050,502 | | | | | $ | 8.37 | | | | | | 98,025,502 | | | | | $ | 8.37 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021E | | | 2022E | | ||||||
| | | ($, in millions, except for %) | | |||||||||
Pro Forma Revenue | | | | | | | | | | | | | |
Advertising | | | | | 135 | | | | | | 143 | | |
Circulation | | | | | 23 | | | | | | 27 | | |
Licensing | | | | | 21 | | | | | | 22 | | |
Events | | | | | 13 | | | | | | 20 | | |
Research | | | | | 9 | | | | | | 11 | | |
Other(1) | | | | | 10 | | | | | | 14 | | |
Total | | | | | 211 | | | | | | 237 | | |
Pro Forma Contribution Margin(2) | | | | | 64% | | | | | | 63% | | |
Pro Forma Adjusted EBITDA(3) | | | | | 44 | | | | | | 53 | | |
| | | As of December 31, 2021 | | |||
| | | (in thousands) | | |||
Balance Sheet Data: | | | | | | | |
Cash | | | | $ | 483 | | |
Investments held in Trust Account | | | | $ | 200,010 | | |
Total assets | | | | $ | 200,593 | | |
Total liabilities | | | | $ | 26,662 | | |
Class A ordinary shares subject to possible redemption | | | | $ | 200,000 | | |
Total shareholders’ deficit | | | | $ | (26,069) | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||
| | | (in thousands, except share and per share amounts) | | |||
Statement of Operations Data: | | | | | | | |
Loss from operations | | | | $ | (4,962) | | |
Change in fair value of warrant liabilities | | | | $ | 7,140 | | |
Interest income on Trust Account | | | | $ | 10 | | |
Net loss | | | | $ | (692) | | |
Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
Basic and diluted net earnings per share, Class A ordinary shares | | | | $ | (0.03) | | |
Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
Basic and diluted net earnings per share, Class B ordinary shares | | | | $ | (0.03) | | |
Statement of Cash Flows Data: | | | | | | | |
Net cash used in operating activities | | | | $ | (1,072) | | |
Net cash used in investing activities | | | | $ | (200,000) | | |
Net cash provided by financing activities | | | | $ | 201,555 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Revenues | | | 259,149 | | | 184,853 | | | 210,628 | | |||||||||
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to non-controlling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | | 26,370 | | | | | | 6,980 | | | | | | 6,207 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | ($, in thousands) | | |||||||||
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | | 318,086 | | | | | | 315,797 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | | 318,086 | | | | | | 315,797 | | |
| �� | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | ($, in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net increase (decrease) in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of year | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of year | | | | | 45,054 | | | | | | 50,281 | | | | | | 23,370 | | |
| | | Pro Forma Combined and Consolidated | | |||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | ||||||
| | | (in thousands, except share and per share amounts) | | |||||||||
Summary Unaudited Pro Forma Condensed Combined and Consolidated Statement of Operations Data For the Year Ended December 31, 2021 | | | | | | | | | | | | | |
Net income attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | |
Net income per ordinary share – basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | 82,090,502 | | | | | | 82,025,502 | | |
Summary Unaudited Pro Forma Condensed Combined and Consolidated Balance Sheet Data As of December 31, 2021 | | | | | | | | | | | | | |
Total assets | | | | $ | 423,191 | | | | | $ | 423,191 | | |
Total liabilities | | | | $ | 95,426 | | | | | $ | 95,426 | | |
Noncontrolling interest | | | | $ | 8,718 | | | | | $ | 8,718 | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 319,047 | | | | | $ | 319,047 | | |
Total shareholders’ equity | | | | $ | 327,765 | | | | | $ | 327,765 | | |
| | | No Redemptions(1) | | | % | | | 10% Redemption(2) | | | % | | | 50% Redemption(3) | | | % | | | 75% Redemption(4) | | | % | | | Maximum Redemption(5) | | | % | | ||||||||||||||||||||||||||||||
Forbes Shareholders(6) | | | | | 17,190,502 | | | | | | 17.5% | | | | | | 19,190,502 | | | | | | 19.6% | | | | | | 27,170,502 | | | | | | 27.7% | | | | | | 32,150,502 | | | | | | 32.8% | | | | | | 37,125,502 | | | | | | 37.9% | | |
Public Shareholders(7) | | | | | 30,000,000 | | | | | | 30.6% | | | | | | 28,000,000 | | | | | | 28.5% | | | | | | 20,000,000 | | | | | | 20.4% | | | | | | 15,000,000 | | | | | | 15.3% | | | | | | 10,000,000 | | | | | | 10.2% | | |
Holders of Founder Shares(8) | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | | | | | 10,800,000 | | | | | | 11.0% | | |
PIPE-related investors(9) | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | | | | | 40,100,000 | | | | | | 40.9% | | |
Pro forma fully diluted ordinary shares at December 31, 2021 | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,090,502 | | | | | | 100.0% | | | | | | 98,070,502 | | | | | | 100.0% | | | | | | 98,050,502 | | | | | | 100.0% | | | | | | 98,025,502 | | | | | | 100.0% | | |
| | | No Redemptions(1) | | | 10% Redemption(2) | | | 50% Redemption(3) | | | 75% Redemption(4) | | | Maximum Redemption(5) | | |||||||||||||||||||||||||||||||||||||||||||||
| | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | | Shares | | | Value Per Share(6) | | ||||||||||||||||||||||||||||||
Base Scenario(7) | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,090,502 | | | | | $ | 10.00 | | | | | | 82,070,502 | | | | | $ | 10.00 | | | | | | 82,050,502 | | | | | $ | 10.00 | | | | | | 82,025,502 | | | | | $ | 10.00 | | |
Exercising Public Warrants(8)(11) | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,090,502 | | | | | $ | 8.91 | | | | | | 92,070,502 | | | | | $ | 8.91 | | | | | | 92,050,502 | | | | | $ | 8.91 | | | | | | 92,025,502 | | | | | $ | 8.91 | | |
Exercising Private Warrants(9)(11) | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,090,502 | | | | | $ | 9.32 | | | | | | 88,070,502 | | | | | $ | 9.32 | | | | | | 88,050,502 | | | | | $ | 9.32 | | | | | | 88,025,502 | | | | | $ | 9.32 | | |
Exercising Public and Private Warrants(10)(11) | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,090,502 | | | | | $ | 8.37 | | | | | | 98,070,502 | | | | | $ | 8.37 | | | | | | 98,050,502 | | | | | $ | 8.37 | | | | | | 98,025,502 | | | | | $ | 8.37 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021E | | | 2022E | | ||||||
| | | ($, in millions, except for %) | | |||||||||
Pro Forma Revenue | | | | | | | | | | | | | |
Advertising | | | | | 135 | | | | | | 143 | | |
Circulation | | | | | 23 | | | | | | 27 | | |
Licensing | | | | | 21 | | | | | | 22 | | |
Events | | | | | 13 | | | | | | 20 | | |
Research | | | | | 9 | | | | | | 11 | | |
Other(1) | | | | | 10 | | | | | | 14 | | |
Total | | | | | 211 | | | | | | 237 | | |
Pro Forma Contribution Margin(2) | | | | | 64% | | | | | | 63% | | |
Pro Forma Adjusted EBITDA(3) | | | | | 44 | | | | | | 53 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 223.6 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 19.0 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 169.9 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 793.5 | | | | Total Uses | | | | $ | 793.5 | | |
| Sources of Funds (in millions) | | | Uses (in millions) | | ||||||||||||
| Existing cash and cash held in Trust Account(1) | | | | $ | 23.5 | | | | Aggregate cash and ordinary share consideration issued to Forbes shareholders(2) | | | | $ | 629.5 | | |
| Private Placement | | | | | 400.0 | | | | Transaction and other costs(3) | | | | | 18.3 | | |
| Ordinary shares of combined company issued to Forbes shareholders(2) | | | | | 369.3 | | | | Cash to combined company Balance Sheet | | | | | 145.0 | | |
| Total Sources | | | | $ | 792.8 | | | | Total Uses | | | | $ | 792.8 | | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
Jonathan Lin | | | L2 Capital | | | Financial services | | | Co-Founder, Partner and Chief Investment Officer | |
| | | Central for Change | | | Non-profit organization | | | Co-founder | |
Frank Han | | | L2 Capital | | | Financial services | | | Co-Founder and Partner | |
Kevin Lee | | | L2 Capital | | | Financial services | | | Co-Founder and Partner | |
Sammy Hsieh | | | iClick Interactive Asia Group Limited | | | Online marketing technology | | | Chairman of the Board, Director and Co-founder | |
Alexandre Casin | | | Nendo Labs Limited | | | Financial services | | | Founder | |
| | | You & MrJones LLC | | | Brand technology | | | Founding Partner | |
Dickson Cheng | | | Shanggu Securities Limited | | | Financial services | | | Managing Director and Head of the Investment Banking | |
| | | China Lesso Group Holdings Limited | | | Piping manufacturing and development | | | Independent Non-Executive Director | |
Johnny Liu | | | Nomura International (Hong Kong) Limited | | | Financial services | | | Managing Director | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenues | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Total revenues | | | | | 259,149 | | | | | | 184,853 | | | | | | 210,628 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net: | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | 8,036 | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | 1,577 | | | | | | — | | | | | | — | | |
Interest expense | | | | | (756) | | | | | | (874) | | | | | | (1,162) | | |
Other income, net | | | | | 1,375 | | | | | | 2,677 | | | | | | 2,228 | | |
Total other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to noncontrolling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 26,370 | | | | | $ | 6,980 | | | | | $ | 6,207 | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 170,366 | | | | | $ | — | | | | | $ | 16,782 | | | | | $ | 187,148 | | |
Circulation | | | | | 11,872 | | | | | | — | | | | | | 3,325 | | | | | | 15,197 | | |
Licensing | | | | | — | | | | | | 21,003 | | | | | | 1,250 | | | | | | 22,253 | | |
Events | | | | | — | | | | | | 15,757 | | | | | | 517 | | | | | | 16,274 | | |
Research | | | | | — | | | | | | 7,940 | | | | | | — | | | | | | 7,940 | | |
Other | | | | | — | | | | | | 10,242 | | | | | | 95 | | | | | | 10,337 | | |
Total revenues | | | | $ | 182,238 | | | | | $ | 54,942 | | | | | $ | 21,969 | | | | | $ | 259,149 | | |
| | | Year Ended December 31, 2020 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | |
Circulation | | | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | |
Licensing | | | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | |
Events | | | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | |
Research | | | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | |
Other | | | | | — | | | | | | 6,357 | | | | | | | | | | | | 6,357 | | |
Total revenues | | | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation | | | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing | | | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events | | | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research | | | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other | | | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues | | | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Forbes Media | | | | $ | 210,098 | | | | | $ | 172,375 | | | | | $ | 198,477 | | |
Marketplace | | | | | 43,930 | | | | | | 5,742 | | | | | | 342 | | |
Quantalytics | | | | | 94 | | | | | | — | | | | | | — | | |
Other | | | | | 5,027 | | | | | | 6,736 | | | | | | 11,809 | | |
Total revenue | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | |
Forbes Media | | | | $ | 51,843 | | | | | $ | 41,832 | | | | | $ | 47,969 | | |
Marketplace | | | | | 10,535 | | | | | | (2,972) | | | | | | (2,085) | | |
Quantalytics | | | | | (2,264) | | | | | | (1,539) | | | | | | (125) | | |
Other | | | | | 265 | | | | | | (4,793) | | | | | | (6,147) | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Net income | | | | $ | 38,001 | | | | | $ | 7,540 | | | | | $ | 7,637 | | |
Interest expense | | | | | 787 | | | | | | 941 | | | | | | 1,183 | | |
Interest income | | | | | (24) | | | | | | (25) | | | | | | (154) | | |
Income taxes | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Stock-based compensation | | | | | 3,240 | | | | | | (2,270) | | | | | | 2,583 | | |
Management fees | | | | | 1,008 | | | | | | 980 | | | | | | 1,062 | | |
Gain on sale on FMHK | | | | | (1,577) | | | | | | — | | | | | | — | | |
Severance and other expenses(1) | | | | | 4,643 | | | | | | 5,508 | | | | | | 5,187 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Other(2) | | | | | (5,803) | | | | | | 942 | | | | | | 1,432 | | |
Adjusted EBITDA | | | | $ | 60,341 | | | | | $ | 32,528 | | | | | $ | 39,612 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | $ | 47,206 | | | | | $ | 26,989 | | | | | $ | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Grant Date | | | Number of Shares Subject to Option Granted | | | Per Share Exercise Price of Options | | | Fair Value of Common Stock per share on Grant Date | | | Per Share Fair Value of Options | | ||||||||||||
3/1/2021 | | | | | 330 | | | | | $ | 14,583 | | | | | $ | 13,340 | | | | | $ | 20,833 | | |
3/12/2021 | | | | | 528 | | | | | $ | 14,583 | | | | | $ | 13,340 | | | | | $ | 20,833 | | |
| | | Assuming Minimum Redemptions (Shares) | | | % | | | Assuming Maximum Redemptions (Shares) | | | % | | ||||||||||||
Forbes Shareholders | | | | | 17,190,502 | | | | | | 21.0% | | | | | | 37,125,502 | | | | | | 45.2% | | |
Public Shareholders | | | | | 20,000,000 | | | | | | 24.4% | | | | | | — | | | | | | —% | | |
Holders of Founder Shares | | | | | 4,800,000 | | | | | | 5.8% | | | | | | 4,800,000 | | | | | | 5.9% | | |
PIPE-related investors | | | | | 40,100,000 | | | | | | 48.8% | | | | | | 40,100,000 | | | | | | 48.9% | | |
Pro forma ordinary shares at December 31, 2021 | | | | | 82,090,502 | | | | | | 100.0% | | | | | | 82,025,502 | | | | | | 100.0% | | |
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 483 | | | | | $ | 43,065 | | | | | $ | 200,010 | | | | A | | | | $ | 145,000 | | | | | $ | (200,010) | | | | L | | | | $ | 145,000 | | |
| | | | | — | | | | | | — | | | | | | 400,000 | | | | B | | | | | — | | | | | | 650 | | | | M | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (455,983) | | | | C | | | | | — | | | | | | 199,360 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (5,000) | | | | D | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (17,575) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (20,000) | | | | K | | | | | — | | | | | | — | | | | | | | | | — | | |
Restricted cash | | | | | — | | | | | | — | | | | | | 5,000 | | | | D | | | | | 5,000 | | | | | | — | | | | | | | | | 5,000 | | |
Accounts receivable, net | | | | | — | | | | | | 65,362 | | | | | | — | | | | | | | | | 65,362 | | | | | | — | | | | | | | | | 65,362 | | |
Current portion of deferred subscription commissions | | | | | — | | | | | | 6,025 | | | | | | — | | | | | | | | | 6,025 | | | | | | — | | | | | | | | | 6,025 | | |
Prepaid expenses and other current assets | | | | | 100 | | | | | | 17,581 | | | | | | (1,930) | | | | E | | | | | 15,751 | | | | | | — | | | | | | | | | 15,751 | | |
Total current assets | | | | | 583 | | | | | | 132,033 | | | | | | 104,522 | | | | | | | | | 237,138 | | | | | | — | | | | | | | | | 237,138 | | |
Investments held in Trust Account | | | | | 200,010 | | | | | | — | | | | | | (200,010) | | | | A | | | | | — | | | | | | — | | | | | | | | | — | | |
Deferred subscription commissions, net of current portion | | | | | — | | | | | | 3,021 | | | | | | — | | | | | | | | | 3,021 | | | | | | — | | | | | | | | | 3,021 | | |
Investments | | | | | — | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | |
Equity method investments | | | | | — | | | | | | 2,120 | | | | | | — | | | | | | | | | 2,120 | | | | | | — | | | | | | | | | 2,120 | | |
Property and equipment, net | | | | | — | | | | | | 11,120 | | | | | | — | | | | | | | | | 11,120 | | | | | | — | | | | | | | | | 11,120 | | |
Intangible assets, net | | | | | — | | | | | | 107,996 | | | | | | — | | | | | | | | | 107,996 | | | | | | — | | | | | | | | | 107,996 | | |
Goodwill | | | | | — | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | |
Deferred tax assets, net | | | | | — | | | | | | 44,245 | | | | | | — | | | | | | | | | 44,245 | | | | | | — | | | | | | | | | 44,245 | | |
Other assets | | | | | — | | | | | | 4,141 | | | | | | — | | | | | | | | | 4,141 | | | | | | — | | | | | | | | | 4,141 | | |
Total assets | | | | $ | 200,593 | | | | | $ | 318,086 | | | | | $ | (95,488) | | | | | | | | $ | 423,191 | | | | | $ | — | | | | | | | | $ | 423,191 | | |
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | | | $ | — | | | | | $ | 2,082 | | | | | $ | — | | | | | | | | $ | 2,082 | | | | | $ | — | | | | | | | | $ | 2,082 | | |
Accrued expenses and other current liabilities | | | | | 3,122 | | | | | | 9,234 | | | | | | (3,359) | | | | E | | | | | 10,997 | | | | | | — | | | | | | | | | 10,997 | | |
| | | | | | | | | | | | | | | | | 2,000 | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
Current portion of unexpired subscriptions | | | | | — | | | | | | 10,772 | | | | | | — | | | | | | | | | 10,772 | | | | | | — | | | | | | | | | 10,772 | | |
Current portion of deferred revenues | | | | | — | | | | | | 12,221 | | | | | | — | | | | | | | | | 12,221 | | | | | | — | | | | | | | | | 12,221 | | |
Accrued compensation | | | | | — | | | | | | 18,790 | | | | | | — | | | | | | | | | 18,790 | | | | | | — | | | | | | | | | 18,790 | | |
Loans payable, current | | | | | — | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | |
Total current liabilities | | | | | 3,122 | | | | | | 53,679 | | | | | | (1,359) | | | | | | | | | 55,442 | | | | | | — | | | | | | | | | 55,442 | | |
| | Magnum Opus (Historical) | | Forbes (Historical) | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | Pro Forma Combined (Assuming No Redemptions) | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | | Magnum Opus (Historical) | | Forbes (Historical) | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | Pro Forma Combined (Assuming No Redemptions) | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | — | | | | | 11,511 | | | | | — | | | | | | | 11,511 | | | | | — | | | | | | | 11,511 | | | | | | — | | | | | 11,511 | | | | | — | | | | | | | 11,511 | | | | | — | | | | | | | 11,511 | | | ||||||||||||||||
Deferred underwriting fee payable | | | | 7,000 | | | | | — | | | | | (7,000) | | | E | | | | — | | | | | — | | | | | | | — | | | | | | 7,000 | | | | | — | | | | | (7,000) | | | E | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
Unexpired subscriptions | | | | — | | | | | 6,391 | | | | | — | | | | | | | 6,391 | | | | | — | | | | | | | 6,391 | | | | | | — | | | | | 6,391 | | | | | — | | | | | | | 6,391 | | | | | — | | | | | | | 6,391 | | | ||||||||||||||||
Deferred revenues, net of current portion | | | | — | | | | | 3,499 | | | | | — | | | | | | | 3,499 | | | | | — | | | | | | | 3,499 | | | | | | — | | | | | 3,499 | | | | | — | | | | | | | 3,499 | | | | | — | | | | | | | 3,499 | | | ||||||||||||||||
Other liabilities | | | | — | | | | | 8,578 | | | | | (6,535) | | | F | | | | 2,043 | | | | | — | | | | | | | 2,043 | | | | | | — | | | | | 8,578 | | | | | (6,535) | | | F | | | | 2,043 | | | | | — | | | | | | | 2,043 | | | ||||||||||||||||
Warrant liabilities | | | | 16,540 | | | | | — | | | | | — | | | | | | | 16,540 | | | | | — | | | | | | | 16,540 | | | | | | 16,540 | | | | | — | | | | | — | | | | | | | 16,540 | | | | | — | | | | | | | 16,540 | | | ||||||||||||||||
Total liabilities | | | | 26,662 | | | | | 83,658 | | | | | (14,894) | | | | | | | 95,426 | | | | | — | | | | | | | 95,426 | | | | | | 26,662 | | | | | 83,658 | | | | | (14,894) | | | | | | | 95,426 | | | | | — | | | | | | | 95,426 | | | ||||||||||||||||
Class A ordinary shares subject to possible redemption | | | | 200,000 | | | | | — | | | | | (200,000) | | | G | | | | — | | | | | — | | | | | | | — | | | | | | 200,000 | | | | | — | | | | | (200,000) | | | G | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Preference shares | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | — | | | | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
Ordinary shares, $0.0001 par value | | | | 1 | | | | | 10 | | | | | 4 | | | B | | | | 8 | | | | | (2) | | | L | | | | 8 | | | | | | 1 | | | | | 10 | | | | | 4 | | | B | | | | 8 | | | | | (2) | | | L | | | | 8 | | | ||||||||||||||||
| | | | — | | | | | — | | | | | 2 | | | G | | | | — | | | | | 2 | | | N | | | | — | | | | | | — | | | | | — | | | | | 2 | | | G | | | | — | | | | | 2 | | | N | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | (10) | | | H | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | (10) | | | H | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | 1 | | | I | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | 1 | | | I | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
Additional paid-in capital | | | | — | | | | | 153,642 | | | | | 399,996 | | | B | | | | 291,914 | | | | | (200,008) | | | L | | | | 291,914 | | | | | | — | | | | | 153,642 | | | | | 399,996 | | | B | | | | 283,196 | | | | | (200,008) | | | L | | | | 283,196 | | | ||||||||||||||||
| | | | — | | | | | — | | | | | (455,983) | | | C | | | | — | | | | | 650 | | | M | | | | — | | | | | | — | | | | | — | | | | | (455,983) | | | C | | | | — | | | | | 650 | | | M | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | 6,535 | | | F | | | | — | | | | | 199,358 | | | N | | | | — | | | | | | — | | | | | — | | | | | 6,535 | | | F | | | | — | | | | | 199,358 | | | N | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | (7,440) | | | E | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | (7,440) | | | E | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | 199,998 | | | G | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | 199,998 | | | G | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | 39,237 | | | H | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | 30,519 | | | H | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | (1) | | | I | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | (1) | | | I | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | (26,070) | | | J | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | (26,070) | | | J | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | — | | | | | — | | | | | (20,000) | | | K | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | (20,000) | | | K | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | | | | | | | | | | | 2,000 | | | O | | | | — | | | | | — | | | | | | | — | | | | | | | | | | | | | | | | 2,000 | | | O | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
(Accumulated deficit) retained earnings | | | | (26,070) | | | | | 41,573 | | | | | (1,706) | | | E | | | | 35,867 | | | | | — | | | | | | | 35,867 | | | | | | (26,070) | | | | | 41,573 | | | | | (1,706) | | | E | | | | 35,867 | | | | | — | | | | | | | 35,867 | | | ||||||||||||||||
| | | | — | | | | | — | | | | | 26,070 | | | J | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | — | | | | | 26,070 | | | J | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
| | | | | | | | | | | | | | (4,000) | | | O | | | | — | | | | | — | | | | | | | — | | | | | | | | | | | | | | | | (4,000) | | | O | | | | — | | | | | — | | | | | | | — | | | ||||||||||||||||
Accumulated other comprehensive loss | | | | — | | | | | (24) | | | | | — | | | | | | | (24) | | | | | — | | | | | | | (24) | | | | | | — | | | | | (24) | | | | | — | | | | | | | (24) | | | | | — | | | | | | | (24) | | | ||||||||||||||||
Total shareholders’ equity attributable to Forbes Global Media Holdings Inc. shareholders | | | | (26,069) | | | | | 195,201 | | | | | 158,633 | | | | | | | 327,765 | | | | | — | | | | | | | 327,765 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | (26,069) | | | | | 195,201 | | | | | 149,915 | | | | | | | 319,047 | | | | | — | | | | | | | 319,047 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | | | | — | | | | | 39,227 | | | | | (39,227) | | | H | | | | — | | | | | — | | | | | | | — | | | | | | — | | | | | 39,227 | | | | | (30,509) | | | H | | | | 8,718 | | | | | — | | | | | | | 8,718 | | | ||||||||||||||||
Total shareholders’ equity | | | | (26,069) | | | | | 234,428 | | | | | 119,406 | | | | | | | 327,765 | | | | | — | | | | | | | 327,765 | | | | | | (26,069) | | | | | 234,428 | | | | | 119,406 | | | | | | | 327,765 | | | | | — | | | | | | | 327,765 | | | ||||||||||||||||
Total liabilities, temporary equity, and shareholders’ equity | | | $ | 200,593 | | | | $ | 318,086 | | | | $ | (95,488) | | | | | | $ | 423,191 | | | | $ | — | | | | | | $ | 423,191 | | | | | $ | 200,593 | | | | $ | 318,086 | | | | $ | (95,488) | | | | | | $ | 423,191 | | | | $ | — | | | | | | $ | 423,191 | | | |
| | | Period From January 22, 2021 (Inception) Through December 31, 2021 | | | Year Ended December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Revenues | | | | $ | — | | | | | $ | 259,149 | | | | | $ | — | | | | | | | | $ | 259,149 | | | | | $ | — | | | | | $ | 259,149 | | |
Operating costs | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | — | | | | | | 112,334 | | | | | | 584 | | | | CC | | | | | 112,918 | | | | | | — | | | | | | 112,918 | | |
Sales and marketing | | | | | — | | | | | | 31,273 | | | | | | 584 | | | | CC | | | | | 31,857 | | | | | | — | | | | | | 31,857 | | |
Product development | | | | | — | | | | | | 22,393 | | | | | | 518 | | | | CC | | | | | 22,911 | | | | | | — | | | | | | 22,911 | | |
General and administrative | | | | | 4,962 | | | | | | 45,314 | | | | | | 1,706 | | | | BB | | | | | 60,777 | | | | | | — | | | | | | 60,777 | | |
| | | | | | | | | | | | | | | | | 4,795 | | | | CC | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,000 | | | | DD | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | — | | | | | | 14,771 | | | | | | — | | | | | | | | | 14,771 | | | | | | — | | | | | | 14,771 | | |
Total operating costs | | | | | 4,962 | | | | | | 226,085 | | | | | | 12,187 | | | | | | | | | 243,234 | | | | | | — | | | | | | 243,234 | | |
Operating (loss) profit | | | | | (4,962) | | | | | | 33,064 | | | | | | (12,187) | | | | | | | | | 15,915 | | | | | | — | | | | | | 15,915 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | — | | | | | | 8,036 | | | | | | — | | | | | | | | | 8,036 | | | | | | — | | | | | | 8,036 | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | — | | | | | | 1,577 | | | | | | — | | | | | | | | | 1,577 | | | | | | — | | | | | | 1,577 | | |
Interest earned on marketable securities held in Trust Account | | | | | 10 | | | | | | — | | | | | | (10) | | | | AA | | | | | — | | | | | | — | | | | | | — | | |
Interest expense | | | | | — | | | | | | (756) | | | | | | — | | | | | | | | | (756) | | | | | | — | | | | | | (756) | | |
Loss on sale of private placement warrants | | | | | (2,880) | | | | | | — | | | | | | — | | | | | | | | | (2,880) | | | | | | — | | | | | | (2,880) | | |
Change in fair value of warrant liabilities | | | | | 7,140 | | | | | | — | | | | | | — | | | | | | | | | 7,140 | | | | | | — | | | | | | 7,140 | | |
Other income, net | | | | | — | | | | | | 1,375 | | | | | | — | | | | | | | | | 1,375 | | | | | | — | | | | | | 1,375 | | |
Total other income (expense), net | | | | | 4,270 | | | | | | 10,232 | | | | | | (10) | | | | | | | | | 14,492 | | | | | | — | | | | | | 14,492 | | |
Income from operations before income taxes | | | | | (692) | | | | | | 43,296 | | | | | | (12,197) | | | | | | | | | 30,407 | | | | | | — | | | | | | 30,407 | | |
Income tax expense | | | | | — | | | | | | 5,295 | | | | | | — | | | | | | | | | 5,295 | | | | | | — | | | | | | 5,295 | | |
Net (loss) income | | | | $ | (692) | | | | | $ | 38,001 | | | | | $ | (12,197) | | | | | | | | $ | 25,112 | | | | | $ | — | | | | | $ | 25,112 | | |
Net income per ordinary share (Note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | 82,090,502 | | | | | | | | | | | | 82,025,502 | | |
Net income per ordinary share – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.31 | | | | | | | | | | | $ | 0.31 | | |
| | | Period From January 22, 2021 (Inception) Through December 31, 2021 | | | Year Ended December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Revenues | | | | $ | — | | | | | $ | 259,149 | | | | | $ | — | | | | | | | | $ | 259,149 | | | | | $ | — | | | | | $ | 259,149 | | |
Operating costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | — | | | | | | 112,334 | | | | | | 584 | | | | CC | | | | | 112,918 | | | | | | — | | | | | | 112,918 | | |
Sales and marketing | | | | | — | | | | | | 31,273 | | | | | | 584 | | | | CC | | | | | 31,857 | | | | | | — | | | | | | 31,857 | | |
Product development | | | | | — | | | | | | 22,393 | | | | | | 518 | | | | CC | | | | | 22,911 | | | | | | — | | | | | | 22,911 | | |
General and administrative | | | | | 4,962 | | | | | | 45,314 | | | | | | 1,706 | | | | BB | | | | | 60,777 | | | | | | — | | | | | | 60,777 | | |
| | | | | | | | | | | | | | | | | 4,795 | | | | CC | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,000 | | | | DD | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | — | | | | | | 14,771 | | | | | | — | | | | | | | | | 14,771 | | | | | | — | | | | | | 14,771 | | |
Total operating costs | | | | | 4,962 | | | | | | 226,085 | | | | | | 12,187 | | | | | | | | | 243,234 | | | | | | — | | | | | | 243,234 | | |
Operating (loss) profit | | | | | (4,962) | | | | | | 33,064 | | | | | | (12,187) | | | | | | | | | 15,915 | | | | | | — | | | | | | 15,915 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | — | | | | | | 8,036 | | | | | | — | | | | | | | | | 8,036 | | | | | | — | | | | | | 8,036 | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | — | | | | | | 1,577 | | | | | | — | | | | | | | | | 1,577 | | | | | | — | | | | | | 1,577 | | |
Interest earned on marketable securities held in Trust Account | | | | | 10 | | | | | | — | | | | | | (10) | | | | AA | | | | | — | | | | | | — | | | | | | — | | |
Interest expense | | | | | — | | | | | | (756) | | | | | | — | | | | | | | | | (756) | | | | | | — | | | | | | (756) | | |
Loss on sale of private placement warrants | | | | | (2,880) | | | | | | — | | | | | | — | | | | | | | | | (2,880) | | | | | | — | | | | | | (2,880) | | |
Change in fair value of warrant liabilities | | | | | 7,140 | | | | | | — | | | | | | — | | | | | | | | | 7,140 | | | | | | — | | | | | | 7,140 | | |
Other income, net | | | | | — | | | | | | 1,375 | | | | | | — | | | | | | | | | 1,375 | | | | | | — | | | | | | 1,375 | | |
Total other income (expense), net | | | | | 4,270 | | | | | | 10,232 | | | | | | (10) | | | | | | | | | 14,492 | | | | | | — | | | | | | 14,492 | | |
Income from operations before income taxes | | | | | (692) | | | | | | 43,296 | | | | | | (12,197) | | | | | | | | | 30,407 | | | | | | — | | | | | | 30,407 | | |
Income tax expense | | | | | — | | | | | | 5,295 | | | | | | — | | | | | | | | | 5,295 | | | | | | — | | | | | | 5,295 | | |
Net (loss) income | | | | | (692) | | | | | | 38,001 | | | | | | (12,197) | | | | | | | | | 25,112 | | | | | | — | | | | | | 25,112 | | |
Less: net income attributable to noncontrolling interest | | | | | — | | | | | | 11,631 | | | | | | (6,569) | | | | EE | | | | | 5,062 | | | | | | — | | | | | | 5,062 | | |
Net (loss) income attributable to ordinary shareholders | | | | $ | (692) | | | | | $ | 26,370 | | | | | $ | (5,628) | | | | | | | | $ | 20,050 | | | | | $ | — | | | | | $ | 20,050 | | |
Net income per ordinary share (Note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | 82,090,502 | | | | | | | | | | | | 82,025,502 | | |
Net income per ordinary share – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.24 | | | | | | | | | | | $ | 0.24 | | |
| | Year Ended December 31, 2021(1) | | | | Year Ended December 31, 2021(1) | | | ||||||||||||||||||||||||||||||
| | Assuming No Redemptions | | Assuming Maximum Redemptions | | | | Assuming No Redemptions | | Assuming Maximum Redemptions | | | ||||||||||||||||||||||||||
| | (in thousands, except share and per share amounts) | | | (in thousands, except share and per share amounts) | | ||||||||||||||||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Pro forma net income (loss) | | | $ | 25,112 | | | | $ | 25,112 | | | | ||||||||||||||||||||||||||
Pro forma net income (loss) attributable to ordinary shareholders | | | $ | 20,050 | | | | $ | 20,050 | | | | ||||||||||||||||||||||||||
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Weighted average shares outstanding – basic and diluted(2) | | | | 82,090,502 | | | | | 82,025,502 | | | | | | | 82,090,502 | | | | | 82,025,502 | | | | ||||||||||||||
Net income (loss) per share: | | | | | | | | | | | | | ||||||||||||||||||||||||||
Net income (loss) per ordinary share: | | | | | | | | | | | | | ||||||||||||||||||||||||||
Basic and diluted | | | $ | 0.31 | | | | $ | 0.31 | | | | | | $ | 0.24 | | | | $ | 0.24 | | | |
Name and Principal Position | | | Fiscal Year | | | Salary ($) | | | Bonus ($)(1) | | | Option Awards ($)(2) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Michael Federle | | | | | 2021 | | | | | | 750,000 | | | | | | | | | | | | 422,019 | | | | | | — | | | | | | 1,172,019 | | |
| | | | | 2020 | | | | | | 750,000 | | | | | | 604,500 | | | | | | — | | | | | | — | | | | | | 1,354,500 | | |
Chief Executive Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jessica Sibley | | | | | 2021 | | | | | | 551,500 | | | | | | | | | | | | — | | | | | | — | | | | | | 551,500 | | |
| | | | | 2020 | | | | | | 551,500 | | | | | | 473,267 | | | | | | 602,834 | | | | | | — | | | | | | 1,627,601 | | |
Chief Operations Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael York | | | | | 2021 | | | | | | 439,000 | | | | | | | | | | | | 301,442 | | | | | | — | | | | | | 740,442 | | |
| | | | | 2020 | | | | | | 401,500 | | | | | | 237,500 | | | | | | — | | | | | | — | | | | | | 639,000 | | |
Chief Financial Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Option Awards | | ||||||||||||||||||
Name | | | Grant Date(1) | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Option Exercise Price($) | | | Option Expiration Date | | |||||||||
Michael Federle | | | 10/13/2015 | | | | | 247 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 1/1/2018 | | | | | 110 | | | | | | 55 | | | | | | 14,583.33 | | | | 1/1/2028 | |
| | | 3/12/2021 | | | | | — | | | | | | 115 | | | | | | 14,583.33 | | | | 3/12/2031 | |
Jessica Sibley | | | 8/1/2020 | | | | | — | | | | | | 165 | | | | | | 14,583.33 | | | | 8/1/2030 | |
| | | | Option Awards | | | | | Option Awards | | ||||||||||||||||||||||||||||||||||||||||
Name | | Grant Date(1) | | Number of Securities Underlying Unexercised Options (#) Exercisable | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | Option Exercise Price($) | | Option Expiration Date | | | Grant Date(1) | | Number of Securities Underlying Unexercised Options (#) Exercisable | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | Option Exercise Price($) | | Option Expiration Date | | ||||||||||||||||||||||||||||
Michael Federle | | 10/13/2015 | | | | 247 | | | | | — | | | | | 14,583.33 | | | 10/13/2025 | | ||||||||||||||||||||||||||||||
| | 1/1/2018 | | | | 110 | | | | | 55 | | | | | 14,583.33 | | | 1/1/2028 | | ||||||||||||||||||||||||||||||
| | 3/12/2021 | | | | — | | | | | 115 | | | | | 14,583.33 | | | 3/12/2031 | | ||||||||||||||||||||||||||||||
Jessica Sibley | | 8/1/2020 | | | | — | | | | | 165 | | | | | 14,583.33 | | | 8/1/2030 | | ||||||||||||||||||||||||||||||
Michael York | | 10/13/2015 | | | | 124 | | | | | — | | | | | 14,583.33 | | | 10/13/2025 | | | 10/13/2015 | | | | 124 | | | | | — | | | | | 14,583.33 | | | 10/13/2025 | | ||||||||||
| | 9/30/2016 | | | | 124 | | | | | — | | | | | 14,583.33 | | | 9/30/2026 | | | 9/30/2016 | | | | 124 | | | | | — | | | | | 14,583.33 | | | 9/30/2026 | | ||||||||||
| | 3/12/2021 | | | | — | | | | | 82 | | | | | 14,583.33 | | | 3/12/2031 | | | 3/12/2021 | | | | — | | | | | 82 | | | | | 14,583.33 | | | 3/12/2031 | |
Name | | | Age | | | Position | |
Michael Federle | | | 62 | | | Chief Executive Officer, Chairman and Director | |
Jonathan Lin | | | | | Director | | |
Jeffrey Yam | | | | | Director | | |
Lynne Biggar | | | 59 | | | Director | |
Nick Bell | | | 38 | | | Director | |
Yu Qian (Bill) | | | 36 | | | Director | |
Patrick Hillmann | | | 39 | | | Director | |
Shelley Y. Simms | | | 53 | | | Director | |
Kevin K. Leung | | | 51 | | | Director | |
MariaRosa Cartolano | | | 60 | | | General Counsel | |
Jessica Sibley | | | | | Chief Operations Officer | | |
Michael D. York | | | | | Chief Financial Officer | |
| | | Fair Market Value of Ordinary Shares | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption Date (Period to Expiration of Warrants) | | | ≤$10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥18.00 | | |||||||||||||||||||||||||||
60 months | | | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
57 months | | | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months | | | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months | | | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months | | | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months | | | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months | | | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months | | | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months | | | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months | | | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months | | | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months | | | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months | | | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months | | | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months | | | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months | | | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months | | | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months | | | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months | | | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months | | | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months | | | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | | Fair Market Value of Ordinary Shares | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption Date (Period to Expiration of Warrants) | | | ≤$10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥18.00 | | |||||||||||||||||||||||||||
60 months | | | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
57 months | | | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months | | | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months | | | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months | | | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months | | | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months | | | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months | | | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months | | | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months | | | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months | | | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months | | | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months | | | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months | | | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months | | | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months | | | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months | | | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months | | | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months | | | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months | | | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months | | | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | | Fair Market Value of Ordinary Shares | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption Date (Period to Expiration of Warrants) | | | ≤$10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥18.00 | | |||||||||||||||||||||||||||
60 months | | | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
57 months | | | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months | | | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months | | | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months | | | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months | | | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months | | | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months | | | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months | | | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months | | | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months | | | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months | | | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months | | | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months | | | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months | | | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months | | | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months | | | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months | | | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months | | | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months | | | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months | | | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | | | | | | | | | | | | | | After the Business Combination | | | | | |||||||||||||||||||||
| | | Prior to the Business Combination(1) | | | Assuming No Redemption(2) | | | Assuming Maximum Redemption(3) | | | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owners† | | | Number of Shares | | | % | | | Number of Shares | | | % | | | Number of Shares | | | % | | | | | ||||||||||||||||||
Officers and Directors Prior to the Transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Alexandre Casin | | | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | | ||
Dickson Cheng | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Frank Han | | | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | | | ||
Johnny Liu | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Jonathan Lin(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Kersten Hui | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Kevin Lee | | | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | | | ||
Sammy Hsieh | | | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | |
| | | | | | | | | | | | After the Business Combination | | | | | | | | | | | | | | | After the Business Combination | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | Prior to the Business Combination(1) | | Assuming No Redemption(2) | | Assuming Maximum Redemption(3) | | | | | Prior to the Business Combination(1) | | Assuming No Redemption(2) | | Assuming Maximum Redemption(3) | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial Owners† | | Number of Shares | | % | | Number of Shares | | % | | Number of Shares | | % | | | | | Number of Shares | | % | | Number of Shares | | % | | Number of Shares | | % | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||
Officers and Directors After the Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Michael Federle | | | | — | | | | | —% | | | | | 286,987 | | | | | * | | | | | 389,049 | | | | | * | | | | | | | — | | | | | —% | | | | | 286,987 | | | | | * | | | | | 389,049 | | | | | * | | | | ||||||||||||||||
Jonathan Lin(4)(5) | | | | 4,500,000 | | | | | 18.0% | | | | | 4,300,000 | | | | | 5.2% | | | | | 4,300,000 | | | | | 5.2% | | | | | | | 4,500,000 | | | | | 18.0% | | | | | 4,300,000 | | | | | 5.2% | | | | | 4,300,000 | | | | | 5.2% | | | | ||||||||||||||||
Jeffrey Yam | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Lynne Biggar | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Nick Bell | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Shelley Y. Simms | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Kevin K. Leung | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Yu Qian (Bill) | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Patrick Hillmann | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
MariaRosa Cartolano | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | | — | | | | | —% | | | | ||||||||||||||||
Jessica Sibley | | | | — | | | | | —% | | | | | 27,183 | | | | | * | | | | | 59,078 | | | | | * | | | | | | | — | | | | | —% | | | | | 27,183 | | | | | * | | | | | 59,078 | | | | | * | | | | ||||||||||||||||
Michael D. York | | | | — | | | | | —% | | | | | 54,367 | | | | | * | | | | | 118,156 | | | | | * | | | | | | | — | | | | | —% | | | | | 54,367 | | | | | * | | | | | 118,156 | | | | | * | | | | ||||||||||||||||
Greater than 5% Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Magnum Opus Holdings LLC(4)(5) | | | | 4,500,000 | | | | | 18.0% | | | | | 4,300,000 | | | | | 5.2% | | | | | 4,300,000 | | | | | 5.2% | | | | | | | 4,500,000 | | | | | 18.0% | | | | | 4,300,000 | | | | | 5.2% | | | | | 4,300,000 | | | | | 5.2% | | | | ||||||||||||||||
Integrated Whale Media Investment Inc.(6) | | | | — | | | | | —% | | | | | 15,838,911 | | | | | 19.3% | | | | | 34,422,750 | | | | | 42.0% | | | | | | | — | | | | | —% | | | | | 15,838,911 | | | | | 19.3% | | | | | 34,422,750 | | | | | 42.0% | | | | ||||||||||||||||
Binance Capital Management Co., Ltd.(7) | | | | — | | | | | —% | | | | | 20,000,000 | | | | | 24.4% | | | | | 20,000,000 | | | | | 24.4% | | | | ||||||||||||||||||||||||||||||||||||||||||||||||
Binance Capital Management Co., Ltd.(7) | | | | — | | | | | —% | | | | | 20,000,000 | | | | | 24.4% | | | | | 20,000,000 | | | | | 24.4% | | | |
| | | Page | | |||
Magnum Opus Acquisition Limited | | | | | | | |
Audited Financial Statements: | | | | | | | |
Report of Independent Registered Public Accounting Firm | | | | | F-2 | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
Forbes Global Holdings Inc. | | | | | | | |
Audited Consolidated Financial Statements: | | | | | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | |
| ASSETS | | | | | | | |
| Current assets: | | | | | | | |
| Cash | | | | $ | 482,651 | | |
| Prepaid expenses | | | | | 99,756 | | |
| Total current assets | | | | | 582,407 | | |
| Investments held in Trust Account | | | | | 200,010,449 | | |
| Total assets | | | | $ | 200,592,856 | | |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable and accrued expenses | | | | $ | 3,122,633 | | |
| Total current liabilities | | | | | 3,122,633 | | |
| Deferred underwriting fee payable | | | | | 7,000,000 | | |
| Warrant liabilities | | | | | 16,540,000 | | |
| Total liabilities | | | | | 26,662,633 | | |
| Commitments | | | | | | | |
| Class A ordinary shares subject to possible redemption, 20,000,000 shares at redemption value | | | | | 200,000,000 | | |
| Shareholders’ Deficit | | | | | | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 20,000,000 shares issued and no shares outstanding (excluding 20,000,000 shares subject to possible redemption) | | | | | — | | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,000,000 shares issued and outstanding | | | | | 500 | | |
| Additional paid-in capital | | | | | — | | |
| Accumulated deficit | | | | | (26,070,277) | | |
| Total shareholders’ deficit | | | | | (26,069,777) | | |
| Total liabilities and shareholders’ deficit | | | | $ | 200,592,856 | | |
| Formation and operating costs | | | | $ | 4,094,759 | | |
| Expensed offering costs | | | | | 867,351 | | |
| Loss from operations | | | | | (4,962,110) | | |
| Interest income on Trust Account | | | | | 10,449 | | |
| Loss on sale of private placement warrants | | | | | (2,880,000) | | |
| Change in fair value of warrant liabilities | | | | | 7,140,000 | | |
| Net loss | | | | $ | (691,661) | | |
| Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
| Basic and diluted net loss per share, Class A ordinary shares | | | | $ | (0.03) | | |
| Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
| Basic and diluted net loss per share, Class B ordinary shares | | | | $ | (0.03) | | |
| | | Ordinary Shares | | | | | | | | | | |||||||||||||||||||||||||||||||
| | | Class A | | | Class B | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance – January 22, 2021 (inception) | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor | | | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Accretion of Class A ordinary shares to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,425) | | | | | | (25,378,691) | | | | | | (25,403,116) | | |
Forfeiture of Class B ordinary shares | | | | | — | | | | | | — | | | | | | (750,000) | | | | | | (75) | | | | | | — | | | | | | 75 | | | | | | — | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (691,661) | | | | | | (691,661) | | |
Balance – December 31, 2021 | | | | | — | | | | | $ | — | | | | | | 5,000,000 | | | | | $ | 500 | | | | | $ | — | | | | | $ | (26,070,277) | | | | | $ | (26,069,777) | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net loss | | | | $ | (691,661) | | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
| Expensed offering costs | | | | | 867,351 | | |
| Interest income on investments held in Trust Account | | | | | (10,449) | | |
| Loss on sale of private placement warrants | | | | | 2,880,000 | | |
| Change in fair value of warrant liabilities | | | | | (7,140,000) | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Prepaid expenses | | | | | (99,756) | | |
| Accrued expenses | | | | | 3,122,633 | | |
| Net cash used in operating activities | | | | | (1,071,882) | | |
| Cash Flows from Investing Activities: | | | | | | | |
| Cash deposited in Trust Account | | | | | (200,000,000) | | |
| Net cash used in investing activities | | | | | (200,000,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
| Proceeds from issuance of Class B ordinary shares to Sponsor | | | | | 25,000 | | |
| Proceeds from initial public offering, net of underwriter’s discount paid | | | | | 196,000,000 | | |
| Proceeds from sale of private placement warrants | | | | | 6,000,000 | | |
| Offering costs paid | | | | | (470,467) | | |
| Net cash provided by financing activities | | | | | 201,554,533 | | |
| Net Change in Cash | | | | | 482,651 | | |
| Cash – Beginning of Period | | | | | — | | |
| Cash – End of Period | | | | $ | 482,651 | | |
| Supplemental disclosure of noncash investing and financing activities: | | | | | | | |
| Accretion of Class A ordinary shares subject to redemption to redemption value | | | | $ | 25,403,116 | | |
| Deferred underwriting fee payable | | | | $ | 7,000,000 | | |
| Forfeiture of Class B ordinary shares | | | | $ | 75 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenues | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Total revenues | | | | | 259,149 | | | | | | 184,853 | | | | | | 210,628 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net: | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | 8,036 | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | 1,577 | | | | | | — | | | | | | — | | |
Interest expense | | | | | (756) | | | | | | (874) | | | | | | (1,162) | | |
Other income, net | | | | | 1,375 | | | | | | 2,677 | | | | | | 2,228 | | |
Total other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to noncontrolling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 26,370 | | | | | $ | 6,980 | | | | | $ | 6,207 | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 170,366 | | | | | $ | — | | | | | $ | 16,782 | | | | | $ | 187,148 | | |
Circulation | | | | | 11,872 | | | | | | — | | | | | | 3,325 | | | | | | 15,197 | | |
Licensing | | | | | — | | | | | | 21,003 | | | | | | 1,250 | | | | | | 22,253 | | |
Events | | | | | — | | | | | | 15,757 | | | | | | 517 | | | | | | 16,274 | | |
Research | | | | | — | | | | | | 7,940 | | | | | | — | | | | | | 7,940 | | |
Other | | | | | — | | | | | | 10,242 | | | | | | 95 | | | | | | 10,337 | | |
Total revenues | | | | $ | 182,238 | | | | | $ | 54,942 | | | | | $ | 21,969 | | | | | $ | 259,149 | | |
| | | Year Ended December 31, 2020 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | |
Circulation | | | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | |
Licensing | | | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | |
Events | | | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | |
Research | | | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | |
Other | | | | | — | | | | | | 6,357 | | | | | | | | | | | | 6,357 | | |
Total revenues | | | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation | | | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing | | | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events | | | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research | | | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other | | | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues | | | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Forbes Media | | | | $ | 210,098 | | | | | $ | 172,375 | | | | | $ | 198,477 | | |
Marketplace | | | | | 43,930 | | | | | | 5,742 | | | | | | 342 | | |
Quantalytics | | | | | 94 | | | | | | — | | | | | | — | | |
Other | | | | | 5,027 | | | | | | 6,736 | | | | | | 11,809 | | |
Total revenue | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | |
Forbes Media | | | | $ | 51,843 | | | | | $ | 41,832 | | | | | $ | 47,969 | | |
Marketplace | | | | | 10,535 | | | | | | (2,972) | | | | | | (2,085) | | |
Quantalytics | | | | | (2,264) | | | | | | (1,539) | | | | | | (125) | | |
Other | | | | | 265 | | | | | | (4,793) | | | | | | (6,147) | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Net income | | | | $ | 38,001 | | | | | $ | 7,540 | | | | | $ | 7,637 | | |
Interest expense | | | | | 787 | | | | | | 941 | | | | | | 1,183 | | |
Interest income | | | | | (24) | | | | | | (25) | | | | | | (154) | | |
Income taxes | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Stock-based compensation | | | | | 3,240 | | | | | | (2,270) | | | | | | 2,583 | | |
Management fees | | | | | 1,008 | | | | | | 980 | | | | | | 1,062 | | |
Gain on sale on FMHK | | | | | (1,577) | | | | | | — | | | | | | — | | |
Severance and other expenses(1) | | | | | 4,643 | | | | | | 5,508 | | | | | | 5,187 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Other(2) | | | | | (5,803) | | | | | | 942 | | | | | | 1,432 | | |
Adjusted EBITDA | | | | $ | 60,341 | | | | | $ | 32,528 | | | | | $ | 39,612 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | $ | 47,206 | | | | | $ | 26,989 | | | | | $ | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Grant Date | | | Number of Shares Subject to Option Granted | | | Per Share Exercise Price of Options | | | Fair Value of Common Stock per share on Grant Date | | | Per Share Fair Value of Options | | ||||||||||||
3/1/2021 | | | | | 330 | | | | | $ | 14,583 | | | | | $ | 13,340 | | | | | $ | 20,833 | | |
3/12/2021 | | | | | 528 | | | | | $ | 14,583 | | | | | $ | 13,340 | | | | | $ | 20,833 | | |
| | | Assuming Minimum Redemptions (Shares) | | | % | | | Assuming Maximum Redemptions (Shares) | | | % | | ||||||||||||
Forbes Shareholders | | | | | 17,190,502 | | | | | | 21.0% | | | | | | 37,125,502 | | | | | | 45.2% | | |
Public Shareholders | | | | | 20,000,000 | | | | | | 24.4% | | | | | | — | | | | | | —% | | |
Holders of Founder Shares | | | | | 4,800,000 | | | | | | 5.8% | | | | | | 4,800,000 | | | | | | 5.9% | | |
PIPE-related investors | | | | | 40,100,000 | | | | | | 48.8% | | | | | | 40,100,000 | | | | | | 48.9% | | |
Pro forma ordinary shares at December 31, 2021 | | | | | 82,090,502 | | | | | | 100.0% | | | | | | 82,025,502 | | | | | | 100.0% | | |
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 483 | | | | | $ | 43,065 | | | | | $ | 200,010 | | | | A | | | | $ | 145,000 | | | | | $ | (200,010) | | | | L | | | | $ | 145,000 | | |
| | | | | — | | | | | | — | | | | | | 400,000 | | | | B | | | | | — | | | | | | 650 | | | | M | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (455,983) | | | | C | | | | | — | | | | | | 199,360 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (5,000) | | | | D | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (17,575) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (20,000) | | | | K | | | | | — | | | | | | — | | | | | | | | | — | | |
Restricted cash | | | | | — | | | | | | — | | | | | | 5,000 | | | | D | | | | | 5,000 | | | | | | — | | | | | | | | | 5,000 | | |
Accounts receivable, net | | | | | — | | | | | | 65,362 | | | | | | — | | | | | | | | | 65,362 | | | | | | — | | | | | | | | | 65,362 | | |
Current portion of deferred subscription commissions | | | | | — | | | | | | 6,025 | | | | | | — | | | | | | | | | 6,025 | | | | | | — | | | | | | | | | 6,025 | | |
Prepaid expenses and other current assets | | | | | 100 | | | | | | 17,581 | | | | | | (1,930) | | | | E | | | | | 15,751 | | | | | | — | | | | | | | | | 15,751 | | |
Total current assets | | | | | 583 | | | | | | 132,033 | | | | | | 104,522 | | | | | | | | | 237,138 | | | | | | — | | | | | | | | | 237,138 | | |
Investments held in Trust Account | | | | | 200,010 | | | | | | — | | | | | | (200,010) | | | | A | | | | | — | | | | | | — | | | | | | | | | — | | |
Deferred subscription commissions, net of current portion | | | | | — | | | | | | 3,021 | | | | | | — | | | | | | | | | 3,021 | | | | | | — | | | | | | | | | 3,021 | | |
Investments | | | | | — | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | |
Equity method investments | | | | | — | | | | | | 2,120 | | | | | | — | | | | | | | | | 2,120 | | | | | | — | | | | | | | | | 2,120 | | |
Property and equipment, net | | | | | — | | | | | | 11,120 | | | | | | — | | | | | | | | | 11,120 | | | | | | — | | | | | | | | | 11,120 | | |
Intangible assets, net | | | | | — | | | | | | 107,996 | | | | | | — | | | | | | | | | 107,996 | | | | | | — | | | | | | | | | 107,996 | | |
Goodwill | | | | | — | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | |
Deferred tax assets, net | | | | | — | | | | | | 44,245 | | | | | | — | | | | | | | | | 44,245 | | | | | | — | | | | | | | | | 44,245 | | |
Other assets | | | | | — | | | | | | 4,141 | | | | | | — | | | | | | | | | 4,141 | | | | | | — | | | | | | | | | 4,141 | | |
Total assets | | | | $ | 200,593 | | | | | $ | 318,086 | | | | | $ | (95,488) | | | | | | | | $ | 423,191 | | | | | $ | — | | | | | | | | $ | 423,191 | | |
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | | | $ | — | | | | | $ | 2,082 | | | | | $ | — | | | | | | | | $ | 2,082 | | | | | $ | — | | | | | | | | $ | 2,082 | | |
Accrued expenses and other current liabilities | | | | | 3,122 | | | | | | 9,234 | | | | | | (3,359) | | | | E | | | | | 10,997 | | | | | | — | | | | | | | | | 10,997 | | |
| | | | | | | | | | | | | | | | | 2,000 | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
Current portion of unexpired subscriptions | | | | | — | | | | | | 10,772 | | | | | | — | | | | | | | | | 10,772 | | | | | | — | | | | | | | | | 10,772 | | |
Current portion of deferred revenues | | | | | — | | | | | | 12,221 | | | | | | — | | | | | | | | | 12,221 | | | | | | — | | | | | | | | | 12,221 | | |
Accrued compensation | | | | | — | | | | | | 18,790 | | | | | | — | | | | | | | | | 18,790 | | | | | | — | | | | | | | | | 18,790 | | |
Loans payable, current | | | | | — | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | |
Total current liabilities | | | | | 3,122 | | | | | | 53,679 | | | | | | (1,359) | | | | | | | | | 55,442 | | | | | | — | | | | | | | | | 55,442 | | |
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | — | | | | | | 11,511 | | | | | | — | | | | | | | | | 11,511 | | | | | | — | | | | | | | | | 11,511 | | |
Deferred underwriting fee payable | | | | | 7,000 | | | | | | — | | | | | | (7,000) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
Unexpired subscriptions | | | | | — | | | | | | 6,391 | | | | | | — | | | | | | | | | 6,391 | | | | | | — | | | | | | | | | 6,391 | | |
Deferred revenues, net of current portion | | | | | — | | | | | | 3,499 | | | | | | — | | | | | | | | | 3,499 | | | | | | — | | | | | | | | | 3,499 | | |
Other liabilities | | | | | — | | | | | | 8,578 | | | | | | (6,535) | | | | F | | | | | 2,043 | | | | | | — | | | | | | | | | 2,043 | | |
Warrant liabilities | | | | | 16,540 | | | | | | — | | | | | | — | | | | | | | | | 16,540 | | | | | | — | | | | | | | | | 16,540 | | |
Total liabilities | | | | | 26,662 | | | | | | 83,658 | | | | | | (14,894) | | | | | | | | | 95,426 | | | | | | — | | | | | | | | | 95,426 | | |
Class A ordinary shares subject to possible redemption | | | | | 200,000 | | | | | | — | | | | | | (200,000) | | | | G | | | | | — | | | | | | — | | | | | | | | | — | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preference shares | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Ordinary shares, $0.0001 par value | | | | | 1 | | | | | | 10 | | | | | | 4 | | | | B | | | | | 8 | | | | | | (2) | | | | L | | | | | 8 | | |
| | | | | — | | | | | | — | | | | | | 2 | | | | G | | | | | — | | | | | | 2 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (10) | | | | H | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1 | | | | I | | | | | — | | | | | | — | | | | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | 153,642 | | | | | | 399,996 | | | | B | | | | | 283,196 | | | | | | (200,008) | | | | L | | | | | 283,196 | | |
| | | | | — | | | | | | — | | | | | | (455,983) | | | | C | | | | | — | | | | | | 650 | | | | M | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 6,535 | | | | F | | | | | — | | | | | | 199,358 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (7,440) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 199,998 | | | | G | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 30,519 | | | | H | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1) | | | | I | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (26,070) | | | | J | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (20,000) | | | | K | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | 2,000 | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
(Accumulated deficit) retained earnings | | | | | (26,070) | | | | | | 41,573 | | | | | | (1,706) | | | | E | | | | | 35,867 | | | | | | — | | | | | | | | | 35,867 | | |
| | | | | — | | | | | | — | | | | | | 26,070 | | | | J | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | (4,000) | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
Accumulated other comprehensive loss | | | | | — | | | | | | (24) | | | | | | — | | | | | | | | | (24) | | | | | | — | | | | | | | | | (24) | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | | (26,069) | | | | | | 195,201 | | | | | | 149,915 | | | | | | | | | 319,047 | | | | | | — | | | | | | | | | 319,047 | | |
Noncontrolling interest | | | | | — | | | | | | 39,227 | | | | | | (30,509) | | | | H | | | | | 8,718 | | | | | | — | | | | | | | | | 8,718 | | |
Total shareholders’ equity | | | | | (26,069) | | | | | | 234,428 | | | | | | 119,406 | | | | | | | | | 327,765 | | | | | | — | | | | | | | | | 327,765 | | |
Total liabilities, temporary equity, and shareholders’ equity | | | | $ | 200,593 | | | | | $ | 318,086 | | | | | $ | (95,488) | | | | | | | | $ | 423,191 | | | | | $ | — | | | | | | | | $ | 423,191 | | |
|
| | | Period From January 22, 2021 (Inception) Through December 31, 2021 | | | Year Ended December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Revenues | | | | $ | — | | | | | $ | 259,149 | | | | | $ | — | | | | | | | | $ | 259,149 | | | | | $ | — | | | | | $ | 259,149 | | |
Operating costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | — | | | | | | 112,334 | | | | | | 584 | | | | CC | | | | | 112,918 | | | | | | — | | | | | | 112,918 | | |
Sales and marketing | | | | | — | | | | | | 31,273 | | | | | | 584 | | | | CC | | | | | 31,857 | | | | | | — | | | | | | 31,857 | | |
Product development | | | | | — | | | | | | 22,393 | | | | | | 518 | | | | CC | | | | | 22,911 | | | | | | — | | | | | | 22,911 | | |
General and administrative | | | | | 4,962 | | | | | | 45,314 | | | | | | 1,706 | | | | BB | | | | | 60,777 | | | | | | — | | | | | | 60,777 | | |
| | | | | | | | | | | | | | | | | 4,795 | | | | CC | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,000 | | | | DD | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | — | | | | | | 14,771 | | | | | | — | | | | | | | | | 14,771 | | | | | | — | | | | | | 14,771 | | |
Total operating costs | | | | | 4,962 | | | | | | 226,085 | | | | | | 12,187 | | | | | | | | | 243,234 | | | | | | — | | | | | | 243,234 | | |
Operating (loss) profit | | | | | (4,962) | | | | | | 33,064 | | | | | | (12,187) | | | | | | | | | 15,915 | | | | | | — | | | | | | 15,915 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | — | | | | | | 8,036 | | | | | | — | | | | | | | | | 8,036 | | | | | | — | | | | | | 8,036 | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | — | | | | | | 1,577 | | | | | | — | | | | | | | | | 1,577 | | | | | | — | | | | | | 1,577 | | |
Interest earned on marketable securities held in Trust Account | | | | | 10 | | | | | | — | | | | | | (10) | | | | AA | | | | | — | | | | | | — | | | | | | — | | |
Interest expense | | | | | — | | | | | | (756) | | | | | | — | | | | | | | | | (756) | | | | | | — | | | | | | (756) | | |
Loss on sale of private placement warrants | | | | | (2,880) | | | | | | — | | | | | | — | | | | | | | | | (2,880) | | | | | | — | | | | | | (2,880) | | |
Change in fair value of warrant liabilities | | | | | 7,140 | | | | | | — | | | | | | — | | | | | | | | | 7,140 | | | | | | — | | | | | | 7,140 | | |
Other income, net | | | | | — | | | | | | 1,375 | | | | | | — | | | | | | | | | 1,375 | | | | | | — | | | | | | 1,375 | | |
Total other income (expense), net | | | | | 4,270 | | | | | | 10,232 | | | | | | (10) | | | | | | | | | 14,492 | | | | | | — | | | | | | 14,492 | | |
Income from operations before income taxes | | | | | (692) | | | | | | 43,296 | | | | | | (12,197) | | | | | | | | | 30,407 | | | | | | — | | | | | | 30,407 | | |
Income tax expense | | | | | — | | | | | | 5,295 | | | | | | — | | | | | | | | | 5,295 | | | | | | — | | | | | | 5,295 | | |
Net (loss) income | | | | | (692) | | | | | | 38,001 | | | | | | (12,197) | | | | | | | | | 25,112 | | | | | | — | | | | | | 25,112 | | |
Less: net income attributable to noncontrolling interest | | | | | — | | | | | | 11,631 | | | | | | (6,569) | | | | EE | | | | | 5,062 | | | | | | — | | | | | | 5,062 | | |
Net (loss) income attributable to ordinary shareholders | | | | $ | (692) | | | | | $ | 26,370 | | | | | $ | (5,628) | | | | | | | | $ | 20,050 | | | | | $ | — | | | | | $ | 20,050 | | |
Net income per ordinary share (Note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | 82,090,502 | | | | | | | | | | | | 82,025,502 | | |
Net income per ordinary share – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.24 | | | | | | | | | | | $ | 0.24 | | |
| | | Year Ended December 31, 2021(1) | | | | |||||||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | | | ||||||||||
| | | (in thousands, except share and per share amounts) | | |||||||||||||||
Numerator: | | | | | | | | | | | | | | | | ||||
Pro forma net income (loss) attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | | | | ||||
Denominator: | | | | | | | | | | | | | | | | ||||
Weighted average shares outstanding – basic and diluted(2) | | | | | 82,090,502 | | | | | | 82,025,502 | | | | | ||||
Net income (loss) per ordinary share: | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | | | |
Name and Principal Position | | | Fiscal Year | | | Salary ($) | | | Bonus ($)(1) | | | Option Awards ($)(2) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Michael Federle | | | | | 2021 | | | | | | 750,000 | | | | | | | | | | | | 422,019 | | | | | | — | | | | | | 1,172,019 | | |
| | | | | 2020 | | | | | | 750,000 | | | | | | 604,500 | | | | | | — | | | | | | — | | | | | | 1,354,500 | | |
Chief Executive Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jessica Sibley | | | | | 2021 | | | | | | 551,500 | | | | | | | | | | | | — | | | | | | — | | | | | | 551,500 | | |
| | | | | 2020 | | | | | | 551,500 | | | | | | 473,267 | | | | | | 602,834 | | | | | | — | | | | | | 1,627,601 | | |
Chief Operations Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael York | | | | | 2021 | | | | | | 439,000 | | | | | | | | | | | | 301,442 | | | | | | — | | | | | | 740,442 | | |
| | | | | 2020 | | | | | | 401,500 | | | | | | 237,500 | | | | | | — | | | | | | — | | | | | | 639,000 | | |
Chief Financial Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Option Awards | | ||||||||||||||||||
Name | | | Grant Date(1) | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Option Exercise Price($) | | | Option Expiration Date | | |||||||||
Michael Federle | | | 10/13/2015 | | | | | 247 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 1/1/2018 | | | | | 110 | | | | | | 55 | | | | | | 14,583.33 | | | | 1/1/2028 | |
| | | 3/12/2021 | | | | | — | | | | | | 115 | | | | | | 14,583.33 | | | | 3/12/2031 | |
Jessica Sibley | | | 8/1/2020 | | | | | — | | | | | | 165 | | | | | | 14,583.33 | | | | 8/1/2030 | |
Michael York | | | 10/13/2015 | | | | | 124 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 9/30/2016 | | | | | 124 | | | | | | — | | | | | | 14,583.33 | | | | 9/30/2026 | |
| | | 3/12/2021 | | | | | — | | | | | | 82 | | | | | | 14,583.33 | | | | 3/12/2031 | |
Name | | | Age | | | Position | |
Michael Federle | | | 62 | | | Chief Executive Officer, Chairman and Director | |
Jonathan Lin | | | 38 | | | Director | |
Jeffrey Yam | | | 30 | | | Director | |
Lynne Biggar | | | 59 | | | Director | |
Nick Bell | | | 38 | | | Director | |
Yu Qian (Bill) | | | 36 | | | Director | |
Patrick Hillmann | | | 39 | | | Director | |
Shelley Y. Simms | | | 53 | | | Director | |
Kevin K. Leung | | | 51 | | | Director | |
MariaRosa Cartolano | | | 60 | | | General Counsel | |
Jessica Sibley | | | 53 | | | Chief Operations Officer | |
Michael D. York | | | 46 | | | Chief Financial Officer | |
| | | Fair Market Value of Ordinary Shares | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption Date (Period to Expiration of Warrants) | | | ≤$10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥18.00 | | |||||||||||||||||||||||||||
60 months | | | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
57 months | | | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months | | | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months | | | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months | | | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months | | | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months | | | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months | | | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months | | | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months | | | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months | | | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months | | | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months | | | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months | | | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months | | | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months | | | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months | | | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months | | | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months | | | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months | | | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months | | | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | | | | | | | | | | | | | | After the Business Combination | | | | | |||||||||||||||||||||
| | | Prior to the Business Combination(1) | | | Assuming No Redemption(2) | | | Assuming Maximum Redemption(3) | | | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owners† | | | Number of Shares | | | % | | | Number of Shares | | | % | | | Number of Shares | | | % | | | | | ||||||||||||||||||
Officers and Directors Prior to the Transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Alexandre Casin | | | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | | ||
Dickson Cheng | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Frank Han | | | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | | | ||
Johnny Liu | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Jonathan Lin(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Kersten Hui | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Kevin Lee | | | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | | | ||
Sammy Hsieh | | | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | |
| | | | | | | | | | | | | | | After the Business Combination | | | | | |||||||||||||||||||||
| | | Prior to the Business Combination(1) | | | Assuming No Redemption(2) | | | Assuming Maximum Redemption(3) | | | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owners† | | | Number of Shares | | | % | | | Number of Shares | | | % | | | Number of Shares | | | % | | | | | ||||||||||||||||||
Officers and Directors After the Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Michael Federle | | | | | — | | | | | | —% | | | | | | 286,987 | | | | | | * | | | | | | 389,049 | | | | | | * | | | | ||
Jonathan Lin(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Jeffrey Yam | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Lynne Biggar | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Nick Bell | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Shelley Y. Simms | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Kevin K. Leung | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Yu Qian (Bill) | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Patrick Hillmann | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
MariaRosa Cartolano | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Jessica Sibley | | | | | — | | | | | | —% | | | | | | 27,183 | | | | | | * | | | | | | 59,078 | | | | | | * | | | | ||
Michael D. York | | | | | — | | | | | | —% | | | | | | 54,367 | | | | | | * | | | | | | 118,156 | | | | | | * | | | | ||
Greater than 5% Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Magnum Opus Holdings LLC(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Integrated Whale Media Investment Inc.(6) | | | | | — | | | | | | —% | | | | | | 15,838,911 | | | | | | 19.3% | | | | | | 34,422,750 | | | | | | 42.0% | | | | ||
Binance Capital Management Co., Ltd.(7) | | | | | — | | | | | | —% | | | | | | 20,000,000 | | | | | | 24.4% | | | | | | 20,000,000 | | | | | | 24.4% | | | |
| | | Page | | |||
Magnum Opus Acquisition Limited | | | | | | | |
Audited Financial Statements: | | | | | | | |
Report of Independent Registered Public Accounting Firm | | | | | F-2 | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
Forbes Global Holdings Inc. | | | | | | | |
Audited Consolidated Financial Statements: | | | | | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | |
| ASSETS | | | | | | | |
| Current assets: | | | | | | | |
| Cash | | | | $ | 482,651 | | |
| Prepaid expenses | | | | | 99,756 | | |
| Total current assets | | | | | 582,407 | | |
| Investments held in Trust Account | | | | | 200,010,449 | | |
| Total assets | | | | $ | 200,592,856 | | |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable and accrued expenses | | | | $ | 3,122,633 | | |
| Total current liabilities | | | | | 3,122,633 | | |
| Deferred underwriting fee payable | | | | | 7,000,000 | | |
| Warrant liabilities | | | | | 16,540,000 | | |
| Total liabilities | | | | | 26,662,633 | | |
| Commitments | | | | | | | |
| Class A ordinary shares subject to possible redemption, 20,000,000 shares at redemption value | | | | | 200,000,000 | | |
| Shareholders’ Deficit | | | | | | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 20,000,000 shares issued and no shares outstanding (excluding 20,000,000 shares subject to possible redemption) | | | | | — | | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,000,000 shares issued and outstanding | | | | | 500 | | |
| Additional paid-in capital | | | | | — | | |
| Accumulated deficit | | | | | (26,070,277) | | |
| Total shareholders’ deficit | | | | | (26,069,777) | | |
| Total liabilities and shareholders’ deficit | | | | $ | 200,592,856 | | |
| Formation and operating costs | | | | $ | 4,094,759 | | |
| Expensed offering costs | | | | | 867,351 | | |
| Loss from operations | | | | | (4,962,110) | | |
| Interest income on Trust Account | | | | | 10,449 | | |
| Loss on sale of private placement warrants | | | | | (2,880,000) | | |
| Change in fair value of warrant liabilities | | | | | 7,140,000 | | |
| Net loss | | | | $ | (691,661) | | |
| Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
| Basic and diluted net loss per share, Class A ordinary shares | | | | $ | (0.03) | | |
| Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
| Basic and diluted net loss per share, Class B ordinary shares | | | | $ | (0.03) | | |
| | | Ordinary Shares | | | | | | | | | | |||||||||||||||||||||||||||||||
| | | Class A | | | Class B | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance – January 22, 2021 (inception) | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor | | | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Accretion of Class A ordinary shares to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,425) | | | | | | (25,378,691) | | | | | | (25,403,116) | | |
Forfeiture of Class B ordinary shares | | | | | — | | | | | | — | | | | | | (750,000) | | | | | | (75) | | | | | | — | | | | | | 75 | | | | | | — | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (691,661) | | | | | | (691,661) | | |
Balance – December 31, 2021 | | | | | — | | | | | $ | — | | | | | | 5,000,000 | | | | | $ | 500 | | | | | $ | — | | | | | $ | (26,070,277) | | | | | $ | (26,069,777) | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net loss | | | | $ | (691,661) | | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
| Expensed offering costs | | | | | 867,351 | | |
| Interest income on investments held in Trust Account | | | | | (10,449) | | |
| Loss on sale of private placement warrants | | | | | 2,880,000 | | |
| Change in fair value of warrant liabilities | | | | | (7,140,000) | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Prepaid expenses | | | | | (99,756) | | |
| Accrued expenses | | | | | 3,122,633 | | |
| Net cash used in operating activities | | | | | (1,071,882) | | |
| Cash Flows from Investing Activities: | | | | | | | |
| Cash deposited in Trust Account | | | | | (200,000,000) | | |
| Net cash used in investing activities | | | | | (200,000,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
| Proceeds from issuance of Class B ordinary shares to Sponsor | | | | | 25,000 | | |
| Proceeds from initial public offering, net of underwriter’s discount paid | | | | | 196,000,000 | | |
| Proceeds from sale of private placement warrants | | | | | 6,000,000 | | |
| Offering costs paid | | | | | (470,467) | | |
| Net cash provided by financing activities | | | | | 201,554,533 | | |
| Net Change in Cash | | | | | 482,651 | | |
| Cash – Beginning of Period | | | | | — | | |
| Cash – End of Period | | | | $ | 482,651 | | |
| Supplemental disclosure of noncash investing and financing activities: | | | | | | | |
| Accretion of Class A ordinary shares subject to redemption to redemption value | | | | $ | 25,403,116 | | |
| Deferred underwriting fee payable | | | | $ | 7,000,000 | | |
| Forfeiture of Class B ordinary shares | | | | $ | 75 | | |
| Gross proceeds | | | | $ | 200,000,000 | | |
| Less: | | | | | | | |
| Proceeds allocated to Public Warrants | | | | | (14,800,000) | | |
| Issuance costs allocated to Class A ordinary shares | | | | | (10,603,116) | | |
| Plus: | | | | | | | |
| Accretion of carrying value to redemption value | | | | | 25,403,116 | | |
| Class A ordinary shares subject to possible redemption | | | | $ | 200,000,000 | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||||||||
| | | Class A | | | Class B | | ||||||
Basic and diluted net loss per share: | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net loss | | | | $ | (531,392) | | | | | $ | (160,269) | | |
Denominator: | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding | | | | | 16,384,840 | | | | | | 4,941,691 | | |
Basic and diluted net loss per share of ordinary share | | | | $ | (0.03) | | | | | $ | (0.03) | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenues | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Total revenues | | | | | 259,149 | | | | | | 184,853 | | | | | | 210,628 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net: | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | 8,036 | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | 1,577 | | | | | | — | | | | | | — | | |
Interest expense | | | | | (756) | | | | | | (874) | | | | | | (1,162) | | |
Other income, net | | | | | 1,375 | | | | | | 2,677 | | | | | | 2,228 | | |
Total other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to noncontrolling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 26,370 | | | | | $ | 6,980 | | | | | $ | 6,207 | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 170,366 | | | | | $ | — | | | | | $ | 16,782 | | | | | $ | 187,148 | | |
Circulation | | | | | 11,872 | | | | | | — | | | | | | 3,325 | | | | | | 15,197 | | |
Licensing | | | | | — | | | | | | 21,003 | | | | | | 1,250 | | | | | | 22,253 | | |
Events | | | | | — | | | | | | 15,757 | | | | | | 517 | | | | | | 16,274 | | |
Research | | | | | — | | | | | | 7,940 | | | | | | — | | | | | | 7,940 | | |
Other | | | | | — | | | | | | 10,242 | | | | | | 95 | | | | | | 10,337 | | |
Total revenues | | | | $ | 182,238 | | | | | $ | 54,942 | | | | | $ | 21,969 | | | | | $ | 259,149 | | |
| | | Year Ended December 31, 2020 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | |
Circulation | | | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | |
Licensing | | | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | |
Events | | | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | |
Research | | | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | |
Other | | | | | — | | | | | | 6,357 | | | | | | | | | | | | 6,357 | | |
Total revenues | | | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation | | | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing | | | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events | | | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research | | | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other | | | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues | | | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | |
Forbes Media | | | | $ | 210,098 | | | | | $ | 172,375 | | | | | $ | 198,477 | | |
Marketplace | | | | | 43,930 | | | | | | 5,742 | | | | | | 342 | | |
Quantalytics | | | | | 94 | | | | | | — | | | | | | — | | |
Other | | | | | 5,027 | | | | | | 6,736 | | | | | | 11,809 | | |
Total revenue | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Adjusted EBITDA | | | | | | | | | | | | | | | | | | | |
Forbes Media | | | | $ | 51,843 | | | | | $ | 41,832 | | | | | $ | 47,969 | | |
Marketplace | | | | | 10,535 | | | | | | (2,972) | | | | | | (2,085) | | |
Quantalytics | | | | | (2,264) | | | | | | (1,539) | | | | | | (125) | | |
Other | | | | | 265 | | | | | | (4,793) | | | | | | (6,147) | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Net income | | | | $ | 38,001 | | | | | $ | 7,540 | | | | | $ | 7,637 | | |
Interest expense | | | | | 787 | | | | | | 941 | | | | | | 1,183 | | |
Interest income | | | | | (24) | | | | | | (25) | | | | | | (154) | | |
Income taxes | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Stock-based compensation | | | | | 3,240 | | | | | | (2,270) | | | | | | 2,583 | | |
Management fees | | | | | 1,008 | | | | | | 980 | | | | | | 1,062 | | |
Gain on sale on FMHK | | | | | (1,577) | | | | | | — | | | | | | — | | |
Severance and other expenses(1) | | | | | 4,643 | | | | | | 5,508 | | | | | | 5,187 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Other(2) | | | | | (5,803) | | | | | | 942 | | | | | | 1,432 | | |
Adjusted EBITDA | | | | $ | 60,341 | | | | | $ | 32,528 | | | | | $ | 39,612 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Net cash provided by operating activities | | | | $ | 47,206 | | | | | $ | 26,989 | | | | | $ | 18,010 | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Grant Date | | | Number of Shares Subject to Option Granted | | | Per Share Exercise Price of Options | | | Fair Value of Common Stock per share on Grant Date | | | Per Share Fair Value of Options | | ||||||||||||
3/1/2021 | | | | | 330 | | | | | $ | 14,583 | | | | | $ | 13,340 | | | | | $ | 20,833 | | |
3/12/2021 | | | | | 528 | | | | | $ | 14,583 | | | | | $ | 13,340 | | | | | $ | 20,833 | | |
| | | Assuming Minimum Redemptions (Shares) | | | % | | | Assuming Maximum Redemptions (Shares) | | | % | | ||||||||||||
Forbes Shareholders | | | | | 17,190,502 | | | | | | 21.0% | | | | | | 37,125,502 | | | | | | 45.2% | | |
Public Shareholders | | | | | 20,000,000 | | | | | | 24.4% | | | | | | — | | | | | | —% | | |
Holders of Founder Shares | | | | | 4,800,000 | | | | | | 5.8% | | | | | | 4,800,000 | | | | | | 5.9% | | |
PIPE-related investors | | | | | 40,100,000 | | | | | | 48.8% | | | | | | 40,100,000 | | | | | | 48.9% | | |
Pro forma ordinary shares at December 31, 2021 | | | | | 82,090,502 | | | | | | 100.0% | | | | | | 82,025,502 | | | | | | 100.0% | | |
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 483 | | | | | $ | 43,065 | | | | | $ | 200,010 | | | | A | | | | $ | 145,000 | | | | | $ | (200,010) | | | | L | | | | $ | 145,000 | | |
| | | | | — | | | | | | — | | | | | | 400,000 | | | | B | | | | | — | | | | | | 650 | | | | M | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (455,983) | | | | C | | | | | — | | | | | | 199,360 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (5,000) | | | | D | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (17,575) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (20,000) | | | | K | | | | | — | | | | | | — | | | | | | | | | — | | |
Restricted cash | | | | | — | | | | | | — | | | | | | 5,000 | | | | D | | | | | 5,000 | | | | | | — | | | | | | | | | 5,000 | | |
Accounts receivable, net | | | | | — | | | | | | 65,362 | | | | | | — | | | | | | | | | 65,362 | | | | | | — | | | | | | | | | 65,362 | | |
Current portion of deferred subscription commissions | | | | | — | | | | | | 6,025 | | | | | | — | | | | | | | | | 6,025 | | | | | | — | | | | | | | | | 6,025 | | |
Prepaid expenses and other current assets | | | | | 100 | | | | | | 17,581 | | | | | | (1,930) | | | | E | | | | | 15,751 | | | | | | — | | | | | | | | | 15,751 | | |
Total current assets | | | | | 583 | | | | | | 132,033 | | | | | | 104,522 | | | | | | | | | 237,138 | | | | | | — | | | | | | | | | 237,138 | | |
Investments held in Trust Account | | | | | 200,010 | | | | | | — | | | | | | (200,010) | | | | A | | | | | — | | | | | | — | | | | | | | | | — | | |
Deferred subscription commissions, net of current portion | | | | | — | | | | | | 3,021 | | | | | | — | | | | | | | | | 3,021 | | | | | | — | | | | | | | | | 3,021 | | |
Investments | | | | | — | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | | | | | — | | | | | | | | | 1,370 | | |
Equity method investments | | | | | — | | | | | | 2,120 | | | | | | — | | | | | | | | | 2,120 | | | | | | — | | | | | | | | | 2,120 | | |
Property and equipment, net | | | | | — | | | | | | 11,120 | | | | | | — | | | | | | | | | 11,120 | | | | | | — | | | | | | | | | 11,120 | | |
Intangible assets, net | | | | | — | | | | | | 107,996 | | | | | | — | | | | | | | | | 107,996 | | | | | | — | | | | | | | | | 107,996 | | |
Goodwill | | | | | — | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | | | | | — | | | | | | | | | 12,040 | | |
Deferred tax assets, net | | | | | — | | | | | | 44,245 | | | | | | — | | | | | | | | | 44,245 | | | | | | — | | | | | | | | | 44,245 | | |
Other assets | | | | | — | | | | | | 4,141 | | | | | | — | | | | | | | | | 4,141 | | | | | | — | | | | | | | | | 4,141 | | |
Total assets | | | | $ | 200,593 | | | | | $ | 318,086 | | | | | $ | (95,488) | | | | | | | | $ | 423,191 | | | | | $ | — | | | | | | | | $ | 423,191 | | |
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable | | | | $ | — | | | | | $ | 2,082 | | | | | $ | — | | | | | | | | $ | 2,082 | | | | | $ | — | | | | | | | | $ | 2,082 | | |
Accrued expenses and other current liabilities | | | | | 3,122 | | | | | | 9,234 | | | | | | (3,359) | | | | E | | | | | 10,997 | | | | | | — | | | | | | | | | 10,997 | | |
| | | | | | | | | | | | | | | | | 2,000 | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
Current portion of unexpired subscriptions | | | | | — | | | | | | 10,772 | | | | | | — | | | | | | | | | 10,772 | | | | | | — | | | | | | | | | 10,772 | | |
Current portion of deferred revenues | | | | | — | | | | | | 12,221 | | | | | | — | | | | | | | | | 12,221 | | | | | | — | | | | | | | | | 12,221 | | |
Accrued compensation | | | | | — | | | | | | 18,790 | | | | | | — | | | | | | | | | 18,790 | | | | | | — | | | | | | | | | 18,790 | | |
Loans payable, current | | | | | — | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | | | | | — | | | | | | | | | 580 | | |
Total current liabilities | | | | | 3,122 | | | | | | 53,679 | | | | | | (1,359) | | | | | | | | | 55,442 | | | | | | — | | | | | | | | | 55,442 | | |
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | — | | | | | | 11,511 | | | | | | — | | | | | | | | | 11,511 | | | | | | — | | | | | | | | | 11,511 | | |
Deferred underwriting fee payable | | | | | 7,000 | | | | | | — | | | | | | (7,000) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
Unexpired subscriptions | | | | | — | | | | | | 6,391 | | | | | | — | | | | | | | | | 6,391 | | | | | | — | | | | | | | | | 6,391 | | |
Deferred revenues, net of current portion | | | | | — | | | | | | 3,499 | | | | | | — | | | | | | | | | 3,499 | | | | | | — | | | | | | | | | 3,499 | | |
Other liabilities | | | | | — | | | | | | 8,578 | | | | | | (6,535) | | | | F | | | | | 2,043 | | | | | | — | | | | | | | | | 2,043 | | |
Warrant liabilities | | | | | 16,540 | | | | | | — | | | | | | — | | | | | | | | | 16,540 | | | | | | — | | | | | | | | | 16,540 | | |
Total liabilities | | | | | 26,662 | | | | | | 83,658 | | | | | | (14,894) | | | | | | | | | 95,426 | | | | | | — | | | | | | | | | 95,426 | | |
Class A ordinary shares subject to possible redemption | | | | | 200,000 | | | | | | — | | | | | | (200,000) | | | | G | | | | | — | | | | | | — | | | | | | | | | — | | |
Shareholders’ equity (deficit) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preference shares | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | |
Ordinary shares, $0.0001 par value | | | | | 1 | | | | | | 10 | | | | | | 4 | | | | B | | | | | 8 | | | | | | (2) | | | | L | | | | | 8 | | |
| | | | | — | | | | | | — | | | | | | 2 | | | | G | | | | | — | | | | | | 2 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (10) | | | | H | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 1 | | | | I | | | | | — | | | | | | — | | | | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | 153,642 | | | | | | 399,996 | | | | B | | | | | 283,196 | | | | | | (200,008) | | | | L | | | | | 283,196 | | |
| | | | | — | | | | | | — | | | | | | (455,983) | | | | C | | | | | — | | | | | | 650 | | | | M | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 6,535 | | | | F | | | | | — | | | | | | 199,358 | | | | N | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (7,440) | | | | E | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 199,998 | | | | G | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | 30,519 | | | | H | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (1) | | | | I | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (26,070) | | | | J | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | — | | | | | | — | | | | | | (20,000) | | | | K | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | 2,000 | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
(Accumulated deficit) retained earnings | | | | | (26,070) | | | | | | 41,573 | | | | | | (1,706) | | | | E | | | | | 35,867 | | | | | | — | | | | | | | | | 35,867 | | |
| | | | | — | | | | | | — | | | | | | 26,070 | | | | J | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | | | | | | | | | | | | | (4,000) | | | | O | | | | | — | | | | | | — | | | | | | | | | — | | |
Accumulated other comprehensive loss | | | | | — | | | | | | (24) | | | | | | — | | | | | | | | | (24) | | | | | | — | | | | | | | | | (24) | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | | (26,069) | | | | | | 195,201 | | | | | | 149,915 | | | | | | | | | 319,047 | | | | | | — | | | | | | | | | 319,047 | | |
Noncontrolling interest | | | | | — | | | | | | 39,227 | | | | | | (30,509) | | | | H | | | | | 8,718 | | | | | | — | | | | | | | | | 8,718 | | |
Total shareholders’ equity | | | | | (26,069) | | | | | | 234,428 | | | | | | 119,406 | | | | | | | | | 327,765 | | | | | | — | | | | | | | | | 327,765 | | |
Total liabilities, temporary equity, and shareholders’ equity | | | | $ | 200,593 | | | | | $ | 318,086 | | | | | $ | (95,488) | | | | | | | | $ | 423,191 | | | | | $ | — | | | | | | | | $ | 423,191 | | |
|
| | | Period From January 22, 2021 (Inception) Through December 31, 2021 | | | Year Ended December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
| | | Magnum Opus (Historical) | | | Forbes (Historical) | | | Transaction Accounting Adjustments (Assuming No Redemptions) | | | | | | Pro Forma Combined (Assuming No Redemptions) | | | Transaction Accounting Adjustments (Assuming Maximum Redemptions) | | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||||
Revenues | | | | $ | — | | | | | $ | 259,149 | | | | | $ | — | | | | | | | | $ | 259,149 | | | | | $ | — | | | | | $ | 259,149 | | |
Operating costs | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | — | | | | | | 112,334 | | | | | | 584 | | | | CC | | | | | 112,918 | | | | | | — | | | | | | 112,918 | | |
Sales and marketing | | | | | — | | | | | | 31,273 | | | | | | 584 | | | | CC | | | | | 31,857 | | | | | | — | | | | | | 31,857 | | |
Product development | | | | | — | | | | | | 22,393 | | | | | | 518 | | | | CC | | | | | 22,911 | | | | | | — | | | | | | 22,911 | | |
General and administrative | | | | | 4,962 | | | | | | 45,314 | | | | | | 1,706 | | | | BB | | | | | 60,777 | | | | | | — | | | | | | 60,777 | | |
| | | | | | | | | | | | | | | | | 4,795 | | | | CC | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 4,000 | | | | DD | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | | | — | | | | | | 14,771 | | | | | | — | | | | | | | | | 14,771 | | | | | | — | | | | | | 14,771 | | |
Total operating costs | | | | | 4,962 | | | | | | 226,085 | | | | | | 12,187 | | | | | | | | | 243,234 | | | | | | — | | | | | | 243,234 | | |
Operating (loss) profit | | | | | (4,962) | | | | | | 33,064 | | | | | | (12,187) | | | | | | | | | 15,915 | | | | | | — | | | | | | 15,915 | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | — | | | | | | 8,036 | | | | | | — | | | | | | | | | 8,036 | | | | | | — | | | | | | 8,036 | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | — | | | | | | 1,577 | | | | | | — | | | | | | | | | 1,577 | | | | | | — | | | | | | 1,577 | | |
Interest earned on marketable securities held in Trust Account | | | | | 10 | | | | | | — | | | | | | (10) | | | | AA | | | | | — | | | | | | — | | | | | | — | | |
Interest expense | | | | | — | | | | | | (756) | | | | | | — | | | | | | | | | (756) | | | | | | — | | | | | | (756) | | |
Loss on sale of private placement warrants | | | | | (2,880) | | | | | | — | | | | | | — | | | | | | | | | (2,880) | | | | | | — | | | | | | (2,880) | | |
Change in fair value of warrant liabilities | | | | | 7,140 | | | | | | — | | | | | | — | | | | | | | | | 7,140 | | | | | | — | | | | | | 7,140 | | |
Other income, net | | | | | — | | | | | | 1,375 | | | | | | — | | | | | | | | | 1,375 | | | | | | — | | | | | | 1,375 | | |
Total other income (expense), net | | | | | 4,270 | | | | | | 10,232 | | | | | | (10) | | | | | | | | | 14,492 | | | | | | — | | | | | | 14,492 | | |
Income from operations before income taxes | | | | | (692) | | | | | | 43,296 | | | | | | (12,197) | | | | | | | | | 30,407 | | | | | | — | | | | | | 30,407 | | |
Income tax expense | | | | | — | | | | | | 5,295 | | | | | | — | | | | | | | | | 5,295 | | | | | | — | | | | | | 5,295 | | |
Net (loss) income | | | | | (692) | | | | | | 38,001 | | | | | | (12,197) | | | | | | | | | 25,112 | | | | | | — | | | | | | 25,112 | | |
Less: net income attributable to noncontrolling interest | | | | | — | | | | | | 11,631 | | | | | | (6,569) | | | | EE | | | | | 5,062 | | | | | | — | | | | | | 5,062 | | |
Net (loss) income attributable to ordinary shareholders | | | | $ | (692) | | | | | $ | 26,370 | | | | | $ | (5,628) | | | | | | | | $ | 20,050 | | | | | $ | — | | | | | $ | 20,050 | | |
Net income per ordinary share (Note 4): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares of ordinary shares outstanding – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | | 82,090,502 | | | | | | | | | | | | 82,025,502 | | |
Net income per ordinary share – basic and diluted | | | | | | | | | | | | | | | | | | | | | | | | | $ | 0.24 | | | | | | | | | | | $ | 0.24 | | |
| | | Year Ended December 31, 2021(1) | | | | |||||||||||||
| | | Assuming No Redemptions | | | Assuming Maximum Redemptions | | | | ||||||||||
| | | (in thousands, except share and per share amounts) | | |||||||||||||||
Numerator: | | | | | | | | | | | | | | | | ||||
Pro forma net income (loss) attributable to ordinary shareholders | | | | $ | 20,050 | | | | | $ | 20,050 | | | | | ||||
Denominator: | | | | | | | | | | | | | | | | ||||
Weighted average shares outstanding – basic and diluted(2) | | | | | 82,090,502 | | | | | | 82,025,502 | | | | | ||||
Net income (loss) per ordinary share: | | | | | | | | | | | | | | | | ||||
Basic and diluted | | | | $ | 0.24 | | | | | $ | 0.24 | | | | |
Name and Principal Position | | | Fiscal Year | | | Salary ($) | | | Bonus ($)(1) | | | Option Awards ($)(2) | | | All Other Compensation ($) | | | Total ($) | | ||||||||||||||||||
Michael Federle | | | | | 2021 | | | | | | 750,000 | | | | | | | | | | | | 422,019 | | | | | | — | | | | | | 1,172,019 | | |
| | | | | 2020 | | | | | | 750,000 | | | | | | 604,500 | | | | | | — | | | | | | — | | | | | | 1,354,500 | | |
Chief Executive Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Jessica Sibley | | | | | 2021 | | | | | | 551,500 | | | | | | | | | | | | — | | | | | | — | | | | | | 551,500 | | |
| | | | | 2020 | | | | | | 551,500 | | | | | | 473,267 | | | | | | 602,834 | | | | | | — | | | | | | 1,627,601 | | |
Chief Operations Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Michael York | | | | | 2021 | | | | | | 439,000 | | | | | | | | | | | | 301,442 | | | | | | — | | | | | | 740,442 | | |
| | | | | 2020 | | | | | | 401,500 | | | | | | 237,500 | | | | | | — | | | | | | — | | | | | | 639,000 | | |
Chief Financial Officer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Option Awards | | ||||||||||||||||||
Name | | | Grant Date(1) | | | Number of Securities Underlying Unexercised Options (#) Exercisable | | | Number of Securities Underlying Unexercised Options (#) Unexercisable | | | Option Exercise Price($) | | | Option Expiration Date | | |||||||||
Michael Federle | | | 10/13/2015 | | | | | 247 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 1/1/2018 | | | | | 110 | | | | | | 55 | | | | | | 14,583.33 | | | | 1/1/2028 | |
| | | 3/12/2021 | | | | | — | | | | | | 115 | | | | | | 14,583.33 | | | | 3/12/2031 | |
Jessica Sibley | | | 8/1/2020 | | | | | — | | | | | | 165 | | | | | | 14,583.33 | | | | 8/1/2030 | |
Michael York | | | 10/13/2015 | | | | | 124 | | | | | | — | | | | | | 14,583.33 | | | | 10/13/2025 | |
| | | 9/30/2016 | | | | | 124 | | | | | | — | | | | | | 14,583.33 | | | | 9/30/2026 | |
| | | 3/12/2021 | | | | | — | | | | | | 82 | | | | | | 14,583.33 | | | | 3/12/2031 | |
Name | | | Age | | | Position | |
Michael Federle | | | 62 | | | Chief Executive Officer, Chairman and Director | |
Jonathan Lin | | | 38 | | | Director | |
Jeffrey Yam | | | 30 | | | Director | |
Lynne Biggar | | | 59 | | | Director | |
Nick Bell | | | 38 | | | Director | |
Yu Qian (Bill) | | | 36 | | | Director | |
Patrick Hillmann | | | 39 | | | Director | |
Shelley Y. Simms | | | 53 | | | Director | |
Kevin K. Leung | | | 51 | | | Director | |
MariaRosa Cartolano | | | 60 | | | General Counsel | |
Jessica Sibley | | | 53 | | | Chief Operations Officer | |
Michael D. York | | | 46 | | | Chief Financial Officer | |
| | | Fair Market Value of Ordinary Shares | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption Date (Period to Expiration of Warrants) | | | ≤$10.00 | | | 11.00 | | | 12.00 | | | 13.00 | | | 14.00 | | | 15.00 | | | 16.00 | | | 17.00 | | | ≥18.00 | | |||||||||||||||||||||||||||
60 months | | | | | 0.261 | | | | | | 0.281 | | | | | | 0.297 | | | | | | 0.311 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
57 months | | | | | 0.257 | | | | | | 0.277 | | | | | | 0.294 | | | | | | 0.310 | | | | | | 0.324 | | | | | | 0.337 | | | | | | 0.348 | | | | | | 0.358 | | | | | | 0.361 | | |
54 months | | | | | 0.252 | | | | | | 0.272 | | | | | | 0.291 | | | | | | 0.307 | | | | | | 0.322 | | | | | | 0.335 | | | | | | 0.347 | | | | | | 0.357 | | | | | | 0.361 | | |
51 months | | | | | 0.246 | | | | | | 0.268 | | | | | | 0.287 | | | | | | 0.304 | | | | | | 0.320 | | | | | | 0.333 | | | | | | 0.346 | | | | | | 0.357 | | | | | | 0.361 | | |
48 months | | | | | 0.241 | | | | | | 0.263 | | | | | | 0.283 | | | | | | 0.301 | | | | | | 0.317 | | | | | | 0.332 | | | | | | 0.344 | | | | | | 0.356 | | | | | | 0.361 | | |
45 months | | | | | 0.235 | | | | | | 0.258 | | | | | | 0.279 | | | | | | 0.298 | | | | | | 0.315 | | | | | | 0.330 | | | | | | 0.343 | | | | | | 0.356 | | | | | | 0.361 | | |
42 months | | | | | 0.228 | | | | | | 0.252 | | | | | | 0.274 | | | | | | 0.294 | | | | | | 0.312 | | | | | | 0.328 | | | | | | 0.342 | | | | | | 0.355 | | | | | | 0.361 | | |
39 months | | | | | 0.221 | | | | | | 0.246 | | | | | | 0.269 | | | | | | 0.290 | | | | | | 0.309 | | | | | | 0.325 | | | | | | 0.340 | | | | | | 0.354 | | | | | | 0.361 | | |
36 months | | | | | 0.213 | | | | | | 0.239 | | | | | | 0.263 | | | | | | 0.285 | | | | | | 0.305 | | | | | | 0.323 | | | | | | 0.339 | | | | | | 0.353 | | | | | | 0.361 | | |
33 months | | | | | 0.205 | | | | | | 0.232 | | | | | | 0.257 | | | | | | 0.280 | | | | | | 0.301 | | | | | | 0.320 | | | | | | 0.337 | | | | | | 0.352 | | | | | | 0.361 | | |
30 months | | | | | 0.196 | | | | | | 0.224 | | | | | | 0.250 | | | | | | 0.274 | | | | | | 0.297 | | | | | | 0.316 | | | | | | 0.335 | | | | | | 0.351 | | | | | | 0.361 | | |
27 months | | | | | 0.185 | | | | | | 0.214 | | | | | | 0.242 | | | | | | 0.268 | | | | | | 0.291 | | | | | | 0.313 | | | | | | 0.332 | | | | | | 0.350 | | | | | | 0.361 | | |
24 months | | | | | 0.173 | | | | | | 0.204 | | | | | | 0.233 | | | | | | 0.260 | | | | | | 0.285 | | | | | | 0.308 | | | | | | 0.329 | | | | | | 0.348 | | | | | | 0.361 | | |
21 months | | | | | 0.161 | | | | | | 0.193 | | | | | | 0.223 | | | | | | 0.252 | | | | | | 0.279 | | | | | | 0.304 | | | | | | 0.326 | | | | | | 0.347 | | | | | | 0.361 | | |
18 months | | | | | 0.146 | | | | | | 0.179 | | | | | | 0.211 | | | | | | 0.242 | | | | | | 0.271 | | | | | | 0.298 | | | | | | 0.322 | | | | | | 0.345 | | | | | | 0.361 | | |
15 months | | | | | 0.130 | | | | | | 0.164 | | | | | | 0.197 | | | | | | 0.230 | | | | | | 0.262 | | | | | | 0.291 | | | | | | 0.317 | | | | | | 0.342 | | | | | | 0.361 | | |
12 months | | | | | 0.111 | | | | | | 0.146 | | | | | | 0.181 | | | | | | 0.216 | | | | | | 0.250 | | | | | | 0.282 | | | | | | 0.312 | | | | | | 0.339 | | | | | | 0.361 | | |
9 months | | | | | 0.090 | | | | | | 0.125 | | | | | | 0.162 | | | | | | 0.199 | | | | | | 0.237 | | | | | | 0.272 | | | | | | 0.305 | | | | | | 0.336 | | | | | | 0.361 | | |
6 months | | | | | 0.065 | | | | | | 0.099 | | | | | | 0.137 | | | | | | 0.178 | | | | | | 0.219 | | | | | | 0.259 | | | | | | 0.296 | | | | | | 0.331 | | | | | | 0.361 | | |
3 months | | | | | 0.034 | | | | | | 0.065 | | | | | | 0.104 | | | | | | 0.150 | | | | | | 0.197 | | | | | | 0.243 | | | | | | 0.286 | | | | | | 0.326 | | | | | | 0.361 | | |
0 months | | | | | — | | | | | | — | | | | | | 0.042 | | | | | | 0.115 | | | | | | 0.179 | | | | | | 0.233 | | | | | | 0.281 | | | | | | 0.323 | | | | | | 0.361 | | |
| | | | | | | | | | | | | | | After the Business Combination | | | | | |||||||||||||||||||||
| | | Prior to the Business Combination(1) | | | Assuming No Redemption(2) | | | Assuming Maximum Redemption(3) | | | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owners† | | | Number of Shares | | | % | | | Number of Shares | | | % | | | Number of Shares | | | % | | | | | ||||||||||||||||||
Officers and Directors Prior to the Transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Alexandre Casin | | | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | | ||
Dickson Cheng | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Frank Han | | | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | | | ||
Johnny Liu | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Jonathan Lin(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Kersten Hui | | | | | 25,000 | | | | | | 0.1% | | | | | | 25,000 | | | | | | * | | | | | | 25,000 | | | | | | * | | | | ||
Kevin Lee | | | | | 162,500 | | | | | | 0.7% | | | | | | 162,500 | | | | | | * | | | | | | 162,500 | | | | | | * | | | | ||
Sammy Hsieh | | | | | 50,000 | | | | | | 0.2% | | | | | | 50,000 | | | | | | * | | | | | | 50,000 | | | | | | * | | | |
| | | | | | | | | | | | | | | After the Business Combination | | | | | |||||||||||||||||||||
| | | Prior to the Business Combination(1) | | | Assuming No Redemption(2) | | | Assuming Maximum Redemption(3) | | | | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owners† | | | Number of Shares | | | % | | | Number of Shares | | | % | | | Number of Shares | | | % | | | | | ||||||||||||||||||
Officers and Directors After the Transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Michael Federle | | | | | — | | | | | | —% | | | | | | 286,987 | | | | | | * | | | | | | 389,049 | | | | | | * | | | | ||
Jonathan Lin(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Jeffrey Yam | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Lynne Biggar | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Nick Bell | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Shelley Y. Simms | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Kevin K. Leung | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Yu Qian (Bill) | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Patrick Hillmann | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
MariaRosa Cartolano | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | | | — | | | | | | —% | | | | ||
Jessica Sibley | | | | | — | | | | | | —% | | | | | | 27,183 | | | | | | * | | | | | | 59,078 | | | | | | * | | | | ||
Michael D. York | | | | | — | | | | | | —% | | | | | | 54,367 | | | | | | * | | | | | | 118,156 | | | | | | * | | | | ||
Greater than 5% Holders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Magnum Opus Holdings LLC(4)(5) | | | | | 4,500,000 | | | | | | 18.0% | | | | | | 4,300,000 | | | | | | 5.2% | | | | | | 4,300,000 | | | | | | 5.2% | | | | ||
Integrated Whale Media Investment Inc.(6) | | | | | — | | | | | | —% | | | | | | 15,838,911 | | | | | | 19.3% | | | | | | 34,422,750 | | | | | | 42.0% | | | | ||
Binance Capital Management Co., Ltd.(7) | | | | | — | | | | | | —% | | | | | | 20,000,000 | | | | | | 24.4% | | | | | | 20,000,000 | | | | | | 24.4% | | | |
| | | Page | | |||
Magnum Opus Acquisition Limited | | | | | | | |
Audited Financial Statements: | | | | | | | |
Report of Independent Registered Public Accounting Firm | | | | | F-2 | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
Forbes Global Holdings Inc. | | | | | | | |
Audited Consolidated Financial Statements: | | | | | | | |
| | | | F-23 | | | |
| | | | F-24 | | | |
| | | | F-25 | | | |
| | | | F-26 | | | |
| | | | F-27 | | | |
| | | | F-28 | | | |
| | | | F-29 | | |
| ASSETS | | | | | | | |
| Current assets: | | | | | | | |
| Cash | | | | $ | 482,651 | | |
| Prepaid expenses | | | | | 99,756 | | |
| Total current assets | | | | | 582,407 | | |
| Investments held in Trust Account | | | | | 200,010,449 | | |
| Total assets | | | | $ | 200,592,856 | | |
| LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable and accrued expenses | | | | $ | 3,122,633 | | |
| Total current liabilities | | | | | 3,122,633 | | |
| Deferred underwriting fee payable | | | | | 7,000,000 | | |
| Warrant liabilities | | | | | 16,540,000 | | |
| Total liabilities | | | | | 26,662,633 | | |
| Commitments | | | | | | | |
| Class A ordinary shares subject to possible redemption, 20,000,000 shares at redemption value | | | | | 200,000,000 | | |
| Shareholders’ Deficit | | | | | | | |
| Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | | | | | — | | |
| Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 20,000,000 shares issued and no shares outstanding (excluding 20,000,000 shares subject to possible redemption) | | | | | — | | |
| Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,000,000 shares issued and outstanding | | | | | 500 | | |
| Additional paid-in capital | | | | | — | | |
| Accumulated deficit | | | | | (26,070,277) | | |
| Total shareholders’ deficit | | | | | (26,069,777) | | |
| Total liabilities and shareholders’ deficit | | | | $ | 200,592,856 | | |
| Formation and operating costs | | | | $ | 4,094,759 | | |
| Expensed offering costs | | | | | 867,351 | | |
| Loss from operations | | | | | (4,962,110) | | |
| Interest income on Trust Account | | | | | 10,449 | | |
| Loss on sale of private placement warrants | | | | | (2,880,000) | | |
| Change in fair value of warrant liabilities | | | | | 7,140,000 | | |
| Net loss | | | | $ | (691,661) | | |
| Basic and diluted weighted average shares outstanding, Class A ordinary shares | | | | | 16,384,840 | | |
| Basic and diluted net loss per share, Class A ordinary shares | | | | $ | (0.03) | | |
| Basic and diluted weighted average shares outstanding, Class B ordinary shares | | | | | 4,941,691 | | |
| Basic and diluted net loss per share, Class B ordinary shares | | | | $ | (0.03) | | |
| | | Ordinary Shares | | | | | | | | | | |||||||||||||||||||||||||||||||
| | | Class A | | | Class B | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Shareholders’ Deficit | | |||||||||||||||||||||||||||
| | | Shares | | | Amount | | | Shares | | | Amount | | ||||||||||||||||||||||||||||||
Balance – January 22, 2021 (inception) | | | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor | | | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Accretion of Class A ordinary shares to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,425) | | | | | | (25,378,691) | | | | | | (25,403,116) | | |
Forfeiture of Class B ordinary shares | | | | | — | | | | | | — | | | | | | (750,000) | | | | | | (75) | | | | | | — | | | | | | 75 | | | | | | — | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (691,661) | | | | | | (691,661) | | |
Balance – December 31, 2021 | | | | | — | | | | | $ | — | | | | | | 5,000,000 | | | | | $ | 500 | | | | | $ | — | | | | | $ | (26,070,277) | | | | | $ | (26,069,777) | | |
| Cash Flows from Operating Activities: | | | | | | | |
| Net loss | | | | $ | (691,661) | | |
| Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | |
| Expensed offering costs | | | | | 867,351 | | |
| Interest income on investments held in Trust Account | | | | | (10,449) | | |
| Loss on sale of private placement warrants | | | | | 2,880,000 | | |
| Change in fair value of warrant liabilities | | | | | (7,140,000) | | |
| Changes in operating assets and liabilities: | | | | | | | |
| Prepaid expenses | | | | | (99,756) | | |
| Accrued expenses | | | | | 3,122,633 | | |
| Net cash used in operating activities | | | | | (1,071,882) | | |
| Cash Flows from Investing Activities: | | | | | | | |
| Cash deposited in Trust Account | | | | | (200,000,000) | | |
| Net cash used in investing activities | | | | | (200,000,000) | | |
| Cash Flows from Financing Activities: | | | | | | | |
| Proceeds from issuance of Class B ordinary shares to Sponsor | | | | | 25,000 | | |
| Proceeds from initial public offering, net of underwriter’s discount paid | | | | | 196,000,000 | | |
| Proceeds from sale of private placement warrants | | | | | 6,000,000 | | |
| Offering costs paid | | | | | (470,467) | | |
| Net cash provided by financing activities | | | | | 201,554,533 | | |
| Net Change in Cash | | | | | 482,651 | | |
| Cash – Beginning of Period | | | | | — | | |
| Cash – End of Period | | | | $ | 482,651 | | |
| Supplemental disclosure of noncash investing and financing activities: | | | | | | | |
| Accretion of Class A ordinary shares subject to redemption to redemption value | | | | $ | 25,403,116 | | |
| Deferred underwriting fee payable | | | | $ | 7,000,000 | | |
| Forfeiture of Class B ordinary shares | | | | $ | 75 | | |
| Gross proceeds | | | | $ | 200,000,000 | | |
| Less: | | | | | | | |
| Proceeds allocated to Public Warrants | | | | | (14,800,000) | | |
| Issuance costs allocated to Class A ordinary shares | | | | | (10,603,116) | | |
| Plus: | | | | | | | |
| Accretion of carrying value to redemption value | | | | | 25,403,116 | | |
| Class A ordinary shares subject to possible redemption | | | | $ | 200,000,000 | | |
| | | For the period from January 22, 2021 (inception) through December 31, 2021 | | |||||||||
| | | Class A | | | Class B | | ||||||
Basic and diluted net loss per share: | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net loss | | | | $ | (531,392) | | | | | $ | (160,269) | | |
Denominator: | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding | | | | | 16,384,840 | | | | | | 4,941,691 | | |
Basic and diluted net loss per share of ordinary share | | | | $ | (0.03) | | | | | $ | (0.03) | | |
Description | | | Amount at Fair Value | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments held in Trust Account: | | | | | | | | | | | | | | | | | | | | | | | | | |
Money Market investments | | | | $ | 200,010,449 | | | | | $ | 200,010,449 | | | | | $ | — | | | | | $ | — | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Warrant liability – Public Warrants | | | | $ | 10,300,000 | | | | | $ | 10,300,000 | | | | | $ | — | | | | | $ | — | | |
Warrant liability – Private Placement Warrants | | | | $ | 6,240,000 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,240,000 | | |
| | | At March 25, 2021 (Initial Measurement) | | |||
Stock price | | | | $ | 9.76 | | |
Strike price | | | | $ | 11.50 | | |
Probability of completing a Business Combination | | | | | 83.0% | | |
Expected life of the option to convert (in years) | | | | | 6.59 | | |
Volatility | | | 4.5% pre-merger / 25.0% post-merger | | |||
Risk-free rate | | | | | 1.19% | | |
Fair value of warrants | | | | $ | 1.48 | | |
| | | At March 25, 2021 (Initial Measurement) | | | As of December 31, 2021 | | ||||||
Stock price | | | | $ | 9.76 | | | | | $ | 9.92 | | |
Strike price | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Probability of completing a Business Combination | | | | | 83.0% | | | | | | * | | |
Dividend yield | | | | | —% | | | | | | —% | | |
Remaining term (in years) | | | | | 6.59 | | | | | | 5.25 | | |
Volatility | | | | | 21.3% | | | | | | 15.1% | | |
Risk-free rate | | | | | 1.19% | | | | | | 1.28% | | |
Fair value of warrants | | | | $ | 1.48 | | | | | $ | 1.04 | | |
| | | Private Placement | | | Public | | | Warrant Liabilities | | |||||||||
Fair value as of January 22, 2021 (inception) | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement at March 25, 2021 | | | | | 8,880,000 | | | | | | 14,800,000 | | | | | | 23,680,000 | | |
Change in fair value of warrant liabilities | | | | | (2,640,000) | | | | | | (4,500,000) | | | | | | (7,140,000) | | |
Fair value as of December 31, 2021 | | | | $ | 6,240,000 | | | | | $ | 10,300,000 | | | | | $ | 16,540,000 | | |
| Fair value as of January 22, 2021 (inception) | | | | $ | — | | |
| Initial measurement at March 25, 2021 | | | | | 23,680,000 | | |
| Change in fair value | | | | | (7,140,000) | | |
| Transfer of Public Warrants to Level 1 measurement | | | | | (10,300,000) | | |
| Fair value as of December 31, 2021 | | | | $ | 6,240,000 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 43,065 | | | | | $ | 48,314 | | |
Accounts receivable, net | | | | | 65,362 | | | | | | 45,181 | | |
Current portion of deferred subscription commissions | | | | | 6,025 | | | | | | 7,852 | | |
Prepaid expenses and other current assets | | | | | 17,581 | | | | | | 15,178 | | |
Total current assets | | | | | 132,033 | | | | | | 116,525 | | |
Deferred subscription commissions, net of current portion | | | | | 3,021 | | | | | | 2,610 | | |
Property and equipment, net | | | | | 11,120 | | | | | | 10,935 | | |
Investments | | | | | 1,370 | | | | | | 1,370 | | |
Equity method investments | | | | | 2,120 | | | | | | — | | |
Goodwill, net | | | | | 12,040 | | | | | | 12,040 | | |
Intangible assets, net | | | | | 107,996 | | | | | | 119,049 | | |
Deferred tax assets, net | | | | | 44,245 | | | | | | 48,590 | | |
Other assets | | | | | 4,141 | | | | | | 4,678 | | |
Total assets | | | | $ | 318,086 | | | | | $ | 315,797 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 2,082 | | | | | $ | 942 | | |
Accrued expenses and other current liabilities | | | | | 9,234 | | | | | | 8,549 | | |
Current portion of unexpired subscriptions | | | | | 10,772 | | | | | | 10,769 | | |
Current portion of deferred revenues | | | | | 12,221 | | | | | | 8,958 | | |
Accrued compensation | | | | | 18,790 | | | | | | 7,332 | | |
Loans payable, current | | | | | 580 | | | | | | 8,616 | | |
Total current liabilities | | | | | 53,679 | | | | | | 45,166 | | |
Loans payable, net of current portion, debt discount, and debt issuance costs | | | | | 11,511 | | | | | | 12,091 | | |
Unexpired subscriptions | | | | | 6,391 | | | | | | 5,949 | | |
Deferred revenues, net of current portion | | | | | 3,499 | | | | | | 4,139 | | |
Other liabilities | | | | | 8,578 | | | | | | 5,033 | | |
Total liabilities | | | | | 83,658 | | | | | | 72,378 | | |
Commitments and contingencies (See Note 19) | | | | | | | | | | | | | |
Shareholders’ equity: | | | | | | | | | | | | | |
Common stock, $1 par value per share; 50,000 shares authorized; 10,000 shares issued and outstanding as of December 31, 2021 and 2020 | | | | | 10 | | | | | | 10 | | |
Additional paid-in capital | | | | ��� | 153,642 | | | | | | 200,639 | | |
Retained earnings | | | | | 41,573 | | | | | | 15,203 | | |
Accumulated other comprehensive loss | | | | | (24) | | | | | | (30) | | |
Total shareholders’ equity attributable to Forbes Global Holdings Inc. shareholders | | | | | 195,201 | | | | | | 215,822 | | |
Noncontrolling interest | | | | | 39,227 | | | | | | 27,597 | | |
Total shareholders’ equity | | | | | 234,428 | | | | | | 243,419 | | |
Total liabilities and shareholders’ equity | | | | $ | 318,086 | | | | | $ | 315,797 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
Revenues | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
Total revenues | | | | | 259,149 | | | | | | 184,853 | | | | | | 210,628 | | |
Operating costs: | | | | | | | | | | | | | | | | | | | |
Cost of revenue (excluding depreciation and amortization) | | | | | 112,334 | | | | | | 85,935 | | | | | | 105,815 | | |
Sales and marketing | | | | | 31,273 | | | | | | 24,070 | | | | | | 30,053 | | |
Product development | | | | | 22,393 | | | | | | 17,703 | | | | | | 13,705 | | |
General and administrative | | | | | 45,314 | | | | | | 32,496 | | | | | | 33,802 | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,179 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Total operating costs | | | | | 226,085 | | | | | | 175,110 | | | | | | 197,318 | | |
Operating profit | | | | | 33,064 | | | | | | 9,743 | | | | | | 13,310 | | |
Other income (expense), net: | | | | | | | | | | | | | | | | | | | |
Gain on loan forgiveness | | | | | 8,036 | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | 1,577 | | | | | | — | | | | | | — | | |
Interest expense | | | | | (756) | | | | | | (874) | | | | | | (1,162) | | |
Other income, net | | | | | 1,375 | | | | | | 2,677 | | | | | | 2,228 | | |
Total other income (expense), net | | | | | 10,232 | | | | | | 1,803 | | | | | | 1,066 | | |
Income from operations before income taxes | | | | | 43,296 | | | | | | 11,546 | | | | | | 14,376 | | |
Income tax expense | | | | | 5,295 | | | | | | 4,006 | | | | | | 6,739 | | |
Net income | | | | | 38,001 | | | | | | 7,540 | | | | | | 7,637 | | |
Less: net income attributable to noncontrolling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Net income attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 26,370 | | | | | $ | 6,980 | | | | | $ | 6,207 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
Net income | | | | $ | 38,001 | | | | | $ | 7,540 | | | | | $ | 7,637 | | |
Other comprehensive income: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments, net of taxes | | | | | 8 | | | | | | 13 | | | | | | (38) | | |
Total other comprehensive income | | | | | 38,009 | | | | | | 7,553 | | | | | | 7,599 | | |
Comprehensive income attributable to noncontrolling interest | | | | | 11,631 | | | | | | 560 | | | | | | 1,430 | | |
Comprehensive income attributable to Forbes Global Holdings Inc. shareholders | | | | $ | 26,378 | | | | | $ | 6,993 | | | | | $ | 6,169 | | |
| | | Common Stock | | | Additional Paid-in Capital | | | Retained Earnings | | | Accumulated Other Comprehensive Loss | | | Total Shareholders’ Equity Attributable to Forbes Global Holdings Inc. Shareholders | | | Noncontrolling Interest | | | Total Shareholders’ Equity | | |||||||||||||||||||||||||||
| Shares | | | Amount | | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | | | | | 10,000 | | | | | $ | 10 | | | | | $ | 225,682 | | | | | $ | 2,016 | | | | | $ | (7) | | | | | $ | 227,701 | | | | | $ | 22,269 | | | | | $ | 249,970 | | |
Contribution from noncontrolling interests | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,100 | | | | | | 6,100 | | |
Distribution to shareholders | | | | | — | | | | | | — | | | | | | (23,750) | | | | | | — | | | | | | — | | | | | | (23,750) | | | | | | (1,577) | | | | | | (25,327) | | |
Foreign currency translation adjustment, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (34) | | | | | | (34) | | | | | | (4) | | | | | | (38) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 6,207 | | | | | | — | | | | | | 6,207 | | | | | | 1,430 | | | | | | 7,637 | | |
Balance as of December 31, 2019 | | | | | 10,000 | | | | | $ | 10 | | | | | $ | 201,932 | | | | | $ | 8,223 | | | | | $ | (41) | | | | | $ | 210,124 | | | | | $ | 28,218 | | | | | $ | 238,342 | | |
Distribution to shareholders | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (719) | | | | | | (719) | | |
Foreign currency translation adjustment, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | 11 | | | | | | 2 | | | | | | 13 | | |
Purchase of investment in Forbes Marketplace Holdings Limited (See Note 4) | | | | | — | | | | | | — | | | | | | (1,293) | | | | | | — | | | | | | — | | | | | | (1,293) | | | | | | (464) | | | | | | (1,757) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 6,980 | | | | | | — | | | | | | 6,980 | | | | | | 560 | | | | | | 7,540 | | |
Balance as of December 31, 2020 | | | | | 10,000 | | | | | | 10 | | | | | | 200,639 | | | | | | 15,203 | | | | | | (30) | | | | | | 215,822 | | | | | | 27,597 | | | | | | 243,419 | | |
Contribution from noncontrolling interests | | | | | — | | | | | | — | | | | | | 503 | | | | | | — | | | | | | — | | | | | | 503 | | | | | | 2,497 | | | | | | 3,000 | | |
Distribution to shareholders | | | | | — | | | | | | — | | | | | | (47,500) | | | | | | — | | | | | | — | | | | | | (47,500) | | | | | | (2,500) | | | | | | (50,000) | | |
Foreign currency translation adjustment, net of tax | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6 | | | | | | 6 | | | | | | 2 | | | | | | 8 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 26,370 | | | | | | — | | | | | | 26,370 | | | | | | 11,631 | | | | | | 38,001 | | |
Balance as of December 31, 2021 | | | | | 10,000 | | | | | $ | 10 | | | | | $ | 153,642 | | | | | $ | 41,573 | | | | | $ | (24) | | | | | $ | 195,201 | | | | | $ | 39,227 | | | | | $ | 234,428 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net income | | | | $ | 38,001 | | | | | $ | 7,540 | | | | | $ | 7,637 | | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | �� | | | | | | | | | | |
Depreciation and amortization | | | | | 14,771 | | | | | | 14,071 | | | | | | 13,943 | | |
Goodwill impairment charge | | | | | — | | | | | | 727 | | | | | | — | | |
Liability-classified stock-based compensation | | | | | 3,240 | | | | | | (2,270) | | | | | | 2,583 | | |
Write-off of website development costs | | | | | 756 | | | | | | — | | | | | | — | | |
Amortization of deferred termination fees | | | | | 590 | | | | | | 590 | | | | | | 590 | | |
Amortization of debt issuance costs | | | | | 170 | | | | | | 170 | | | | | | 180 | | |
Loss on sale of assets | | | | | — | | | | | | — | | | | | | 85 | | |
Gain on debt forgiveness | | | | | (8,036) | | | | | | — | | | | | | — | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | (1,577) | | | | | | — | | | | | | — | | |
Losses from equity method investments | | | | | 680 | | | | | | — | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts receivable, net | | | | | (21,032) | | | | | | 6,831 | | | | | | (6,521) | | |
Deferred subscription commissions | | | | | 1,416 | | | | | | 6,659 | | | | | | 4,741 | | |
Prepaid expenses and other current assets | | | | | (2,680) | | | | | | (827) | | | | | | (5,196) | | |
Other assets | | | | | (31) | | | | | | 155 | | | | | | (199) | | |
Accounts payable | | | | | 1,140 | | | | | | 595 | | | | | | (475) | | |
Accrued expenses and other current liabilities | | | | | 983 | | | | | | (2,362) | | | | | | 643 | | |
Accrued compensation | | | | | 11,458 | | | | | | (1,375) | | | | | | (1,099) | | |
Unexpired subscriptions | | | | | 445 | | | | | | (6,734) | | | | | | (5,553) | | |
Deferred revenues | | | | | 2,577 | | | | | | 488 | | | | | | 1,320 | | |
Deferred taxes | | | | | 4,345 | | | | | | 3,329 | | | | | | 5,763 | | |
Other liabilities | | | | | (10) | | | | | | (598) | | | | | | (432) | | |
Net cash provided by operating activities | | | | | 47,206 | | | | | | 26,989 | | | | | | 18,010 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Purchases of property and equipment | | | | | (4,691) | | | | | | (4,591) | | | | | | (3,707) | | |
Proceeds from sale of assets | | | | | — | | | | | | 12 | | | | | | 33 | | |
Purchase of additional interests in Forbes Marketplace Holdings Limited | | | | | — | | | | | | (1,757) | | | | | | — | | |
Investment in Creative Labs | | | | | — | | | | | | (321) | | | | | | — | | |
Net cash used in investing activities | | | | | (4,691) | | | | | | (6,657) | | | | | | (3,674) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Distributions to shareholders | | | | | (50,000) | | | | | | (719) | | | | | | (25,325) | | |
Contributions from noncontrolling interests | | | | | 3,000 | | | | | | — | | | | | | 4,980 | | |
Payments of long-term debt | | | | | (750) | | | | | | (750) | | | | | | (2,673) | | |
Proceeds from the Paycheck Protection Program loan | | | | | — | | | | | | 8,036 | | | | | | — | | |
Net cash (used in) provided by financing activities | | | | | (47,750) | | | | | | 6,567 | | | | | | (23,018) | | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | | | | | 8 | | | | | | 12 | | | | | | (38) | | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | | | | | (5,227) | | | | | | 26,911 | | | | | | (8,720) | | |
Cash, cash equivalents, and restricted cash at beginning of the period | | | | | 50,281 | | | | | | 23,370 | | | | | | 32,090 | | |
Cash, cash equivalents, and restricted cash at end of the period | | | | $ | 45,054 | | | | | $ | 50,281 | | | | | $ | 23,370 | | |
Supplemental disclosure of cash flow information: | | | | | | | | | | | | | | | | | | | |
Cash paid for interest | | | | $ | 587 | | | | | $ | 716 | | | | | $ | 992 | | |
Cash paid for income taxes | | | | $ | 376 | | | | | $ | 407 | | | | | $ | 989 | | |
Supplemental disclosure of non-cash investing activities: | | | | | | | | | | | | | | | | | | | |
Equity method investment in Energetic Force | | | | $ | 2,300 | | | | | $ | — | | | | | $ | — | | |
Contributions of noncontrolling interest related to Quantalytics Holding, LLC | | | | $ | — | | | | | $ | — | | | | | $ | 1,120 | | |
Subsidiaries | | | Equity Interest(i) | |
FGMH and its subsidiaries | | | 95% | |
Quantalytics | | | See Note 4, “Variable Interest Entities” | |
Marketplace | | | See Note 4, “Variable Interest Entities” | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Reconciliation of cash, cash equivalents and restricted cash: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 43,065 | | | | | $ | 48,314 | | |
Restricted cash included within other assets | | | | | 1,989 | | | | | | 1,967 | | |
Total cash, cash equivalents, and restricted cash | | | | $ | 45,054 | | | | | $ | 50,281 | | |
Intangible Assets | | | Weighted-Average Useful Life (in years) | |
Trade names and trademarks | | | 20 | |
Advertiser relationships | | | 5 to 15 | |
Subscriber relationships | | | 5 | |
EBSCO publishing license agreement | | | 12 | |
Favorable leases | | | Remaining term of the lease | |
Other | | | 1 | |
| | | Marketplace | | | Quantalytics | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 10,816 | | | | | $ | 891 | | |
Accounts receivable, net | | | | | 10,849 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 1,422 | | | | | | — | | |
Total current assets | | | | | 23,087 | | | | | | 891 | | |
Property and equipment, net | | | | | 89 | | | | | | 5,443 | | |
Other assets | | | | | 83 | | | | | | 108 | | |
Total assets | | | | $ | 23,259 | | | | | $ | 6,442 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,845 | | | | | $ | — | | |
Accrued expenses and other current liabilities | | | | | — | | | | | | 1,723 | | |
Due to an affiliate | | | | | 7,045 | | | | | | 3,428 | | |
Total current liabilities | | | | | 8,890 | | | | | | 5,151 | | |
Total liabilities | | | | $ | 8,890 | | | | | $ | 5,151 | | |
| | | Marketplace | | | Quantalytics | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 556 | | | | | $ | 1,186 | | |
Accounts receivable, net | | | | | 1,539 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 784 | | | | | | — | | |
Total current assets | | | | | 2,879 | | | | | | 1,186 | | |
Property and equipment, net | | | | | 308 | | | | | | 2,084 | | |
Other assets | | | | | — | | | | | | 103 | | |
Total assets | | | | $ | 3,187 | | | | | $ | 3,373 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 19 | | | | | $ | — | | |
Accrued expenses and other current liabilities | | | | | — | | | | | | 155 | | |
Due to an affiliate | | | | | 2,220 | | | | | | — | | |
Total current liabilities | | | | | 2,239 | | | | | | 155 | | |
Total liabilities | | | | | 2,239 | | | | | | 155 | | |
| | | As of December 31, 2021 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s Liability-classified stock options | | | | $ | 6,535 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,535 | | |
Total | | | | $ | 6,535 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,535 | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s Liability-classified stock options | | | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
Total | | | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
| Balance as of December 31, 2019 | | | | $ | 5,565 | | |
| Change in fair value | | | | | (2,270) | | |
| Balance as of December 31, 2020 | | | | $ | 3,295 | | |
| Change in fair value | | | | | 3,240 | | |
| Balance as of December 31, 2021 | | | | $ | 6,535 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Weighted-average expected term in years | | | | | 0.25 | | | | | | 1.00 | | |
Weighted-average expected stock price volatility | | | | | 37.2% | | | | | | 79.0% | | |
Risk-free interest rate | | | | | 0.06% | | | | | | 0.10% | | |
Expected dividend yield | | | | | 0% | | | | | | 0% | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Goodwill | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill, related to Forbes Asia | | | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Total | | | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Intangible Assets | | | Weighted-Average Useful Life (in years) | |
Trade names and trademarks | | | 20 | |
Advertiser relationships | | | 5 to 15 | |
Subscriber relationships | | | 5 | |
EBSCO publishing license agreement | | | 12 | |
Favorable leases | | | Remaining term of the lease | |
Other | | | 1 | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 170,366 | | | | | $ | — | | | | | $ | 16,782 | | | | | $ | 187,148 | | |
Circulation | | | | | 11,872 | | | | | | — | | | | | | 3,325 | | | | | | 15,197 | | |
Licensing | | | | | — | | | | | | 21,003 | | | | | | 1,250 | | | | | | 22,253 | | |
Events | | | | | — | | | | | | 15,757 | | | | | | 517 | | | | | | 16,274 | | |
Research | | | | | — | | | | | | 7,940 | | | | | | — | | | | | | 7,940 | | |
Other | | | | | — | | | | | | 10,242 | | | | | | 95 | | | | | | 10,337 | | |
Total revenues | | | | $ | 182,238 | | | | | $ | 54,942 | | | | | $ | 21,969 | | | | | $ | 259,149 | | |
| | | Year Ended December 31, 2020 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | |
Circulation | | | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | |
Licensing | | | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | |
Events | | | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | |
Research | | | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | |
Other | | | | | — | | | | | | 6,357 | | | | | | — | | | | | | 6,357 | | |
Total revenues | | | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation | | | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing | | | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events | | | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research | | | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other | | | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues | | | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenue, net transferred at a point in time | | | | $ | 132,669 | | | | | $ | 93,546 | | | | | $ | 91,144 | | |
Revenue, net transferred over time | | | | | 126,480 | | | | | | 91,307 | | | | | | 119,484 | | |
Total | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Accounts receivable, net | | | | $ | 65,362 | | | | | $ | 45,181 | | |
Contract assets included in prepaid expenses and other current assets | | | | $ | 966 | | | | | $ | 894 | | |
Unexpired subscriptions, current and noncurrent portions | | | | $ | 17,163 | | | | | $ | 16,718 | | |
Deferred revenues, current and noncurrent portions | | | | $ | 15,720 | | | | | $ | 13,097 | | |
| | | Unexpired Subscriptions | | | Deferred Revenues | | | Total | | |||||||||
Balance as of December 31, 2019 | | | | $ | 23,452 | | | | | $ | 12,609 | | | | | $ | 36,061 | | |
Amounts billed but not recognized | | | | | 7,852 | | | | | | 25,365 | | | | | | 33,217 | | |
Revenue recognized | | | | | (14,586) | | | | | | (24,877) | | | | | | (39,463) | | |
Balance as of December 31, 2020 | | | | $ | 16,718 | | | | | $ | 13,097 | | | | | $ | 29,815 | | |
Amounts billed but not recognized | | | | | 15,148 | | | | | | 38,163 | | | | | | 53,311 | | |
Revenue recognized | | | | | (14,703) | | | | | | (35,540) | | | | | | (50,243) | | |
Balance as of December 31, 2021 | | | | $ | 17,163 | | | | | $ | 15,720 | | | | | $ | 32,883 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Prepaid insurance | | | | $ | 1,547 | | | | | $ | 882 | | |
Contract assets | | | | | 966 | | | | | | 894 | | |
Deposits | | | | | 251 | | | | | | 242 | | |
Tax credits | | | | | 4,598 | | | | | | 4,598 | | |
Other prepaid expenses | | | | | 9,175 | | | | | | 7,721 | | |
Other current assets | | | | | 1,044 | | | | | | 841 | | |
Total prepaid expenses and other current assets | | | | $ | 17,581 | | | | | $ | 15,178 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Furniture and fixtures | | | | $ | 9,830 | | | | | $ | 9,390 | | |
Capitalized internal-use software | | | | | 1,281 | | | | | | 1,281 | | |
Website development costs | | | | | 10,375 | | | | | | 7,035 | | |
Leasehold improvements | | | | | 10,639 | | | | | | 10,688 | | |
| | | | | 32,125 | | | | | | 28,394 | | |
Less: accumulated depreciation and amortization | | | | | (21,005) | | | | | | (17,459) | | |
Property and equipment, net | | | | $ | 11,120 | | | | | $ | 10,935 | | |
| | | Marketplace | | | Quantalytics | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 10,816 | | | | | $ | 891 | | |
Accounts receivable, net | | | | | 10,849 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 1,422 | | | | | | — | | |
Total current assets | | | | | 23,087 | | | | | | 891 | | |
Property and equipment, net | | | | | 89 | | | | | | 5,443 | | |
Other assets | | | | | 83 | | | | | | 108 | | |
Total assets | | | | $ | 23,259 | | | | | $ | 6,442 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,845 | | | | | $ | — | | |
Accrued expenses and other current liabilities | | | | | — | | | | | | 1,723 | | |
Due to an affiliate | | | | | 7,045 | | | | | | 3,428 | | |
Total current liabilities | | | | | 8,890 | | | | | | 5,151 | | |
Total liabilities | | | | $ | 8,890 | | | | | $ | 5,151 | | |
| | | Marketplace | | | Quantalytics | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 556 | | | | | $ | 1,186 | | |
Accounts receivable, net | | | | | 1,539 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 784 | | | | | | — | | |
Total current assets | | | | | 2,879 | | | | | | 1,186 | | |
Property and equipment, net | | | | | 308 | | | | | | 2,084 | | |
Other assets | | | | | — | | | | | | 103 | | |
Total assets | | | | $ | 3,187 | | | | | $ | 3,373 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 19 | | | | | $ | — | | |
Accrued expenses and other current liabilities | | | | | — | | | | | | 155 | | |
Due to an affiliate | | | | | 2,220 | | | | | | — | | |
Total current liabilities | | | | | 2,239 | | | | | | 155 | | |
Total liabilities | | | | | 2,239 | | | | | | 155 | | |
| | | As of December 31, 2021 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s Liability-classified stock options | | | | $ | 6,535 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,535 | | |
Total | | | | $ | 6,535 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,535 | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s Liability-classified stock options | | | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
Total | | | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
| Balance as of December 31, 2019 | | | | $ | 5,565 | | |
| Change in fair value | | | | | (2,270) | | |
| Balance as of December 31, 2020 | | | | $ | 3,295 | | |
| Change in fair value | | | | | 3,240 | | |
| Balance as of December 31, 2021 | | | | $ | 6,535 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Weighted-average expected term in years | | | | | 0.25 | | | | | | 1.00 | | |
Weighted-average expected stock price volatility | | | | | 37.2% | | | | | | 79.0% | | |
Risk-free interest rate | | | | | 0.06% | | | | | | 0.10% | | |
Expected dividend yield | | | | | 0% | | | | | | 0% | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Goodwill | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill, related to Forbes Asia | | | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Total | | | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Intangible Assets | | | Weighted-Average Useful Life (in years) | |
Trade names and trademarks | | | 20 | |
Advertiser relationships | | | 5 to 15 | |
Subscriber relationships | | | 5 | |
EBSCO publishing license agreement | | | 12 | |
Favorable leases | | | Remaining term of the lease | |
Other | | | 1 | |
| | | Marketplace | | | Quantalytics | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 10,816 | | | | | $ | 891 | | |
Accounts receivable, net | | | | | 10,849 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 1,422 | | | | | | — | | |
Total current assets | | | | | 23,087 | | | | | | 891 | | |
Property and equipment, net | | | | | 89 | | | | | | 5,443 | | |
Other assets | | | | | 83 | | | | | | 108 | | |
Total assets | | | | $ | 23,259 | | | | | $ | 6,442 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 1,845 | | | | | $ | — | | |
Accrued expenses and other current liabilities | | | | | — | | | | | | 1,723 | | |
Due to an affiliate | | | | | 7,045 | | | | | | 3,428 | | |
Total current liabilities | | | | | 8,890 | | | | | | 5,151 | | |
Total liabilities | | | | $ | 8,890 | | | | | $ | 5,151 | | |
| | | Marketplace | | | Quantalytics | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 556 | | | | | $ | 1,186 | | |
Accounts receivable, net | | | | | 1,539 | | | | | | — | | |
Prepaid expenses and other current assets | | | | | 784 | | | | | | — | | |
Total current assets | | | | | 2,879 | | | | | | 1,186 | | |
Property and equipment, net | | | | | 308 | | | | | | 2,084 | | |
Other assets | | | | | — | | | | | | 103 | | |
Total assets | | | | $ | 3,187 | | | | | $ | 3,373 | | |
LIABILITIES | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable | | | | $ | 19 | | | | | $ | — | | |
Accrued expenses and other current liabilities | | | | | — | | | | | | 155 | | |
Due to an affiliate | | | | | 2,220 | | | | | | — | | |
Total current liabilities | | | | | 2,239 | | | | | | 155 | | |
Total liabilities | | | | | 2,239 | | | | | | 155 | | |
| | | As of December 31, 2021 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s Liability-classified stock options | | | | $ | 6,535 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,535 | | |
Total | | | | $ | 6,535 | | | | | $ | — | | | | | $ | — | | | | | $ | 6,535 | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | |
FGMH’s Liability-classified stock options | | | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
Total | | | | $ | 3,295 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,295 | | |
| Balance as of December 31, 2019 | | | | $ | 5,565 | | |
| Change in fair value | | | | | (2,270) | | |
| Balance as of December 31, 2020 | | | | $ | 3,295 | | |
| Change in fair value | | | | | 3,240 | | |
| Balance as of December 31, 2021 | | | | $ | 6,535 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Weighted-average expected term in years | | | | | 0.25 | | | | | | 1.00 | | |
Weighted-average expected stock price volatility | | | | | 37.2% | | | | | | 79.0% | | |
Risk-free interest rate | | | | | 0.06% | | | | | | 0.10% | | |
Expected dividend yield | | | | | 0% | | | | | | 0% | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Total | | | Level 1 | | | Level 2 | | | Level 3 | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Goodwill | | | | | | | | | | | | | | | | | | | | | | | | | |
Goodwill, related to Forbes Asia | | | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
Total | | | | $ | 3,104 | | | | | $ | — | | | | | $ | — | | | | | $ | 3,104 | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 170,366 | | | | | $ | — | | | | | $ | 16,782 | | | | | $ | 187,148 | | |
Circulation | | | | | 11,872 | | | | | | — | | | | | | 3,325 | | | | | | 15,197 | | |
Licensing | | | | | — | | | | | | 21,003 | | | | | | 1,250 | | | | | | 22,253 | | |
Events | | | | | — | | | | | | 15,757 | | | | | | 517 | | | | | | 16,274 | | |
Research | | | | | — | | | | | | 7,940 | | | | | | — | | | | | | 7,940 | | |
Other | | | | | — | | | | | | 10,242 | | | | | | 95 | | | | | | 10,337 | | |
Total revenues | | | | $ | 182,238 | | | | | $ | 54,942 | | | | | $ | 21,969 | | | | | $ | 259,149 | | |
| | | Year Ended December 31, 2020 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 115,922 | | | | | $ | — | | | | | $ | 9,038 | | | | | $ | 124,960 | | |
Circulation | | | | | 14,676 | | | | | | — | | | | | | 1,408 | | | | | | 16,084 | | |
Licensing | | | | | — | | | | | | 16,566 | | | | | | 1,234 | | | | | | 17,800 | | |
Events | | | | | — | | | | | | 10,553 | | | | | | 599 | | | | | | 11,152 | | |
Research | | | | | — | | | | | | 8,500 | | | | | | — | | | | | | 8,500 | | |
Other | | | | | — | | | | | | 6,357 | | | | | | — | | | | | | 6,357 | | |
Total revenues | | | | $ | 130,598 | | | | | $ | 41,976 | | | | | $ | 12,279 | | | | | $ | 184,853 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||
| | | Media | | | Brand Extension | | | Consumer | | | Total | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Advertising | | | | $ | 113,911 | | | | | $ | — | | | | | $ | 3,209 | | | | | $ | 117,120 | | |
Circulation | | | | | 23,699 | | | | | | — | | | | | | 1,488 | | | | | | 25,187 | | |
Licensing | | | | | — | | | | | | 18,970 | | | | | | 1,237 | | | | | | 20,207 | | |
Events | | | | | — | | | | | | 22,793 | | | | | | 3,092 | | | | | | 25,885 | | |
Research | | | | | — | | | | | | 10,666 | | | | | | — | | | | | | 10,666 | | |
Other | | | | | — | | | | | | 11,563 | | | | | | — | | | | | | 11,563 | | |
Total revenues | | | | $ | 137,610 | | | | | $ | 63,992 | | | | | $ | 9,026 | | | | | $ | 210,628 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Revenue, net transferred at a point in time | | | | $ | 132,669 | | | | | $ | 93,546 | | | | | $ | 91,144 | | |
Revenue, net transferred over time | | | | | 126,480 | | | | | | 91,307 | | | | | | 119,484 | | |
Total | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Accounts receivable, net | | | | $ | 65,362 | | | | | $ | 45,181 | | |
Contract assets included in prepaid expenses and other current assets | | | | $ | 966 | | | | | $ | 894 | | |
Unexpired subscriptions, current and noncurrent portions | | | | $ | 17,163 | | | | | $ | 16,718 | | |
Deferred revenues, current and noncurrent portions | | | | $ | 15,720 | | | | | $ | 13,097 | | |
| | | Unexpired Subscriptions | | | Deferred Revenues | | | Total | | |||||||||
Balance as of December 31, 2019 | | | | $ | 23,452 | | | | | $ | 12,609 | | | | | $ | 36,061 | | |
Amounts billed but not recognized | | | | | 7,852 | | | | | | 25,365 | | | | | | 33,217 | | |
Revenue recognized | | | | | (14,586) | | | | | | (24,877) | | | | | | (39,463) | | |
Balance as of December 31, 2020 | | | | $ | 16,718 | | | | | $ | 13,097 | | | | | $ | 29,815 | | |
Amounts billed but not recognized | | | | | 15,148 | | | | | | 38,163 | | | | | | 53,311 | | |
Revenue recognized | | | | | (14,703) | | | | | | (35,540) | | | | | | (50,243) | | |
Balance as of December 31, 2021 | | | | $ | 17,163 | | | | | $ | 15,720 | | | | | $ | 32,883 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Prepaid insurance | | | | $ | 1,547 | | | | | $ | 882 | | |
Contract assets | | | | | 966 | | | | | | 894 | | |
Deposits | | | | | 251 | | | | | | 242 | | |
Tax credits | | | | | 4,598 | | | | | | 4,598 | | |
Other prepaid expenses | | | | | 9,175 | | | | | | 7,721 | | |
Other current assets | | | | | 1,044 | | | | | | 841 | | |
Total prepaid expenses and other current assets | | | | $ | 17,581 | | | | | $ | 15,178 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Furniture and fixtures | | | | $ | 9,830 | | | | | $ | 9,390 | | |
Capitalized internal-use software | | | | | 1,281 | | | | | | 1,281 | | |
Website development costs | | | | | 10,375 | | | | | | 7,035 | | |
Leasehold improvements | | | | | 10,639 | | | | | | 10,688 | | |
| | | | | 32,125 | | | | | | 28,394 | | |
Less: accumulated depreciation and amortization | | | | | (21,005) | | | | | | (17,459) | | |
Property and equipment, net | | | | $ | 11,120 | | | | | $ | 10,935 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Outdoor Voices, Inc. | | | | $ | 1,000 | | | | | $ | 1,000 | | |
Creative Labs | | | | | 319 | | | | | | 319 | | |
Roman Health Ventures, Inc | | | | | 51 | | | | | | 51 | | |
Total | | | | $ | 1,370 | | | | | $ | 1,370 | | |
| | | Forbes Media | | | Forbes Asia | | | Total Goodwill | | |||||||||
Balance as of December 31, 2019 | | | | $ | 8,936 | | | | | $ | 3,831 | | | | | $ | 12,767 | | |
Goodwill impairment charge | | | | | — | | | | | | (727) | | | | | | (727) | | |
Balance as of December 31, 2020(1) | | | | $ | 8,936 | | | | | $ | 3,104 | | | | | $ | 12,040 | | |
Goodwill impairment charge | | | | | — | | | | | | — | | | | | | — | | |
Balance as of December 31, 2021(1) | | | | $ | 8,936 | | | | | $ | 3,104 | | | | | $ | 12,040 | | |
| | | As of December 31, 2021 | | |||||||||||||||||||||
| | | Weighted-Average Remaining Amortization Period (in years) | | | Gross Carrying Amount | | | Accumulated Amortization | | | Net Carrying Amount | | ||||||||||||
| | | | | | | | | (in thousands) | | |||||||||||||||
Trade names and trademarks | | | | | 13 | | | | | $ | 108,300 | | | | | $ | (39,537) | | | | | $ | 68,763 | | |
Advertiser relationships | | | | | 12 | | | | | | 78,430 | | | | | | (40,097) | | | | | | 38,333 | | |
Subscriber relationships | | | | | — | | | | | | 160 | | | | | | (160) | | | | | | — | | |
EBSCO publishing license agreement | | | | | 5 | | | | | | 2,300 | | | | | | (1,400) | | | | | | 900 | | |
Favorable leases | | | | | — | | | | | | 278 | | | | | | (278) | | | | | | — | | |
Other | | | | | — | | | | | | 746 | | | | | | (746) | | | | | | — | | |
Total | | | | | | | | | | $ | 190,214 | | | | | $ | (82,218) | | | | | $ | 107,996 | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Weighted-Average Remaining Amortization Period (in years) | | | Gross Carrying Amount | | | Accumulated Amortization | | | Net Carrying Amount | | ||||||||||||
| | | | | | | | | (in thousands) | | |||||||||||||||
Trade names and trademarks | | | | | 14 | | | | | $ | 108,300 | | | | | $ | (34,121) | | | | | $ | 74,179 | | |
Advertiser relationships | | | | | 13 | | | | | | 78,430 | | | | | | (34,652) | | | | | | 43,778 | | |
Subscriber relationships | | | | | — | | | | | | 160 | | | | | | (160) | | | | | | — | | |
EBSCO publishing license agreement | | | | | 6 | | | | | | 2,300 | | | | | | (1,208) | | | | | | 1,092 | | |
Favorable leases | | | | | — | | | | | | 278 | | | | | | (278) | | | | | | — | | |
| | | As of December 31, 2020 | | |||||||||||||||||||||
| | | Weighted-Average Remaining Amortization Period (in years) | | | Gross Carrying Amount | | | Accumulated Amortization | | | Net Carrying Amount | | ||||||||||||
| | | | | | | | | (in thousands) | | |||||||||||||||
Other | | | | | — | | | | | | 746 | | | | | | (746) | | | | | | — | | |
Total | | | | | | | | | | $ | 190,214 | | | | | $ | (71,165) | | | | | $ | 119,049 | | |
|
Years Ended December 31, | | | Intangible Assets | | |||
2022 | | | | | 11,053 | | |
2023 | | | | | 11,053 | | |
2024 | | | | | 10,836 | | |
2025 | | | | | 10,467 | | |
2026 | | | | | 10,142 | | |
Thereafter | | | | | 54,445 | | |
Total | | | | $ | 107,996 | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Term Loan | | | | $ | 12,375 | | | | | $ | 13,125 | | |
Paycheck Protection Program | | | | | — | | | | | | 8,036 | | |
Debt discount | | | | | (133) | | | | | | (213) | | |
Debt issuance costs | | | | | (151) | | | | | | (241) | | |
Total loans payable, net of debt discount and debt issuance costs | | | | | 12,091 | | | | | | 20,707 | | |
Less: current portion | | | | | (580) | | | | | | (8,616) | | |
Total loans payable, net of current portion, debt discount, and debt issuance costs | | | | $ | 11,511 | | | | | $ | 12,091 | | |
Years Ending December 31, | | | | | | | |
2022 | | | | $ | 750 | | |
2023 | | | | | 11,625 | | |
Total | | | | $ | 12,375 | | |
| | | Number of Options | | | Weighted- Average Exercise Price | | | Weighted-Average Remaining Contractual Term (in years) | | | Aggregate Intrinsic Value (in thousands) | | ||||||||||||
Outstanding as of December 31, 2020 | | | | | 1,073 | | | | | $ | 14,583 | | | | | | 5.5 | | | | | $ | — | | |
Granted | | | | | 858 | | | | | | 14,583 | | | | | | | | | | | | | | |
Exercised | | | | | — | | | | | | — | | | | | | | | | | | | | | |
Cancelled or forfeited | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Outstanding as of December 31, 2021 | | | | | 1,931 | | | | | $ | 14,583 | | | | | | 6.6 | | | | | $ | 11.6 | | |
Vested and expected to vest as of December 31, 2021 | | | | | 1,931 | | | | | | 14,583 | | | | | | 6.6 | | | | | $ | 11.6 | | |
Exercisable as of December 31, 2021 | | | | | 852 | | | | | $ | 14,583 | | | | | | 4.2 | | | | | $ | 5.1 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Cost of revenue (excluding depreciation and amortization) | | | | $ | 292 | | | | | $ | (349) | | | | | $ | 397 | | |
General and administrative | | | | | 2,397 | | | | | | (1,921) | | | | | | 2,186 | | |
Sales and marketing | | | | | 292 | | | | | | — | | | | | | — | | |
Product development | | | | | 259 | | | | | | — | | | | | | — | | |
Total | | | | $ | 3,240 | | | | | $ | (2,270) | | | | | $ | 2,583 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
United States | | | | $ | 36,468 | | | | | $ | 7,486 | | | | | $ | 9,682 | | |
Foreign | | | | | 6,828 | | | | | | 4,060 | | | | | | 4,694 | | |
Total | | | | $ | 43,296 | | | | | $ | 11,546 | | | | | $ | 14,376 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | |||||||||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
State | | | | | 226 | | | | | | 213 | | | | | | (89) | | |
Foreign | | | | | 724 | | | | | | 465 | | | | | | 1,130 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal | | | | | 6,870 | | | | | | 1,986 | | | | | | 2,558 | | |
State | | | | | (2,336) | | | | | | 1,342 | | | | | | 3,140 | | |
Foreign | | | | | (189) | | | | | | — | | | | | | — | | |
Income tax expense | | | | $ | 5,295 | | | | | $ | 4,006 | | | | | $ | 6,739 | | |
| | | Years Ended December 31, | | |||||||||||||||||||||||||||||||||
| 2021 | | | 2020 | | | 2019 | | |||||||||||||||||||||||||||||
| Amount (in thousands) | | | % of Pre-Tax | | | Amount (in thousands) | | | % of Pre-Tax | | | Amount (in thousands) | | | % of Pre-Tax | | ||||||||||||||||||||
Statutory tax rate | | | | $ | 8,037 | | | | | | 21% | | | | | $ | 3,019 | | | | | | 21% | | | | | $ | 3,427 | | | | | | 21% | | |
Permanent differences | | | | | (1,451) | | | | | | -4% | | | | | | 349 | | | | | | 2% | | | | | | 301 | | | | | | 2% | | |
Excludable jurisdictions | | | | | (1,379) | | | | | | -4% | | | | | | (699) | | | | | | -5% | | | | | | (871) | | | | | | -5% | | |
Foreign taxes | | | | | 536 | | | | | | 1% | | | | | | 465 | | | | | | 3% | | | | | | 1,130 | | | | | | 7% | | |
Partnership basis differences | | | | | 1,561 | | | | | | 4% | | | | | | 2,319 | | | | | | 16% | | | | | | 2,006 | | | | | | 12% | | |
Change in tax rates | | | | | 3,087 | | | | | | 8% | | | | | | 1,055 | | | | | | 7% | | | | | | 3,907 | | | | | | 24% | | |
Rate differential | | | | | (5,207) | | | | | | -14% | | | | | | (2,605) | | | | | | -18% | | | | | | (2,809) | | | | | | -17% | | |
Current impact of uncertain tax position | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | (143) | | | | | | -1% | | |
Other, net | | | | | 111 | | | | | | 1% | | | | | | 103 | | | | | | 1% | | | | | | (209) | | | | | | -1% | | |
Income tax expense | | | | $ | 5,295 | | | | | | 13% | | | | | $ | 4,006 | | | | | | 27% | | | | | $ | 6,739 | | | | | | 42% | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Accrued expenses and compensation | | | | $ | 28 | | | | | $ | 17 | | |
Investment in partnership | | | | | 32,971 | | | | | | 36,667 | | |
Net operating losses | | | | | 11,622 | | | | | | 12,383 | | |
Deferred revenues | | | | | 22 | | | | | | 36 | | |
Depreciation | | | | | 32 | | | | | | 35 | | |
Other | | | | | 1 | | | | | | 16 | | |
Total deferred tax asset before valuation allowance | | | | | 44,676 | | | | | | 49,154 | | |
Less: valuation allowance | | | | | — | | | | | | — | | |
Net deferred tax asset | | | | | 44,676 | | | | | | 49,154 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Amortization | | | | | 431 | | | | | | 564 | | |
Total deferred tax liabilities | | | | | 431 | | | | | | 564 | | |
Deferred tax assets, net | | | | $ | 44,245 | | | | | $ | 48,590 | | |
| | | December 31, 2021 | | |||||||||||||||||||||||||||||||||
| | | Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advertising | | | | $ | 140,322 | | | | | $ | 43,930 | | | | | $ | — | | | | | $ | 2,896 | | | | | $ | — | | | | | $ | 187,148 | | |
Circulation | | | | | 14,864 | | | | | | — | | | | | | — | | | | | | 333 | | | | | | — | | | | | | 15,197 | | |
Licensing | | | | | 22,253 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 22,253 | | |
Events | | | | | 14,619 | | | | | | — | | | | | | — | | | | | | 1,655 | | | | | | — | | | | | | 16,274 | | |
Research | | | | | 7,940 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 7,940 | | |
Other | | | | | 10,100 | | | | | | — | | | | | | 94 | | | | | | 143 | | | | | | — | | | | | | 10,337 | | |
Total | | | | $ | 210,098 | | | | | $ | 43,930 | | | | | $ | 94 | | | | | $ | 5,027 | | | | | $ | — | | | | | $ | 259,149 | | |
Adjusted EBITDA | | | | $ | 51,843 | | | | | $ | 10,535 | | | | | $ | (2,264) | | | | | $ | 265 | | | | | $ | (38) | | | | | $ | 60,341 | | |
Total assets | | | | $ | 241,997 | | | | | $ | 23,259 | | | | | $ | 3,014 | | | | | $ | 5,571 | | | | | $ | 44,245 | | | | | $ | 318,086 | | |
| | | December 31, 2020 | | |||||||||||||||||||||||||||||||||
| | | Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advertising | | | | $ | 116,379 | | | | | $ | 5,742 | | | | | $ | — | | | | | $ | 2,839 | | | | | $ | — | | | | | $ | 124,960 | | |
Circulation | | | | | 15,529 | | | | | | — | | | | | | — | | | | | | 555 | | | | | | — | | | | | | 16,084 | | |
Licensing | | | | | 17,800 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 17,800 | | |
Events | | | | | 8,223 | | | | | | — | | | | | | — | | | | | | 2,929 | | | | | | — | | | | | | 11,152 | | |
Research | | | | | 8,500 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 8,500 | | |
Other | | | | | 5,944 | | | | | | — | | | | | | — | | | | | | 413 | | | | | | — | | | | | | 6,357 | | |
Total | | | | $ | 172,375 | | | | | $ | 5,742 | | | | | $ | — | | | | | $ | 6,736 | | | | | $ | — | | | | | $ | 184,853 | | |
Adjusted EBITDA | | | | $ | 41,832 | | | | | $ | (2,972) | | | | | $ | (1,539) | | | | | $ | (4,793) | | | | | $ | — | | | | | $ | 32,528 | | |
Total assets | | | | $ | 258,601 | | | | | $ | 967 | | | | | $ | 3,326 | | | | | $ | 4,313 | | | | | $ | 48,590 | | | | | $ | 315,797 | | |
| | | December 31, 2019 | | |||||||||||||||||||||||||||||||||
| | | Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Revenues: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Advertising | | | | $ | 113,373 | | | | | $ | 342 | | | | | $ | — | | | | | $ | 3,405 | | | | | $ | — | | | | | $ | 117,120 | | |
Circulation | | | | | 24,092 | | | | | | — | | | | | | — | | | | | | 1,095 | | | | | | — | | | | | | 25,187 | | |
Licensing | | | | | 20,207 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 20,207 | | |
Events | | | | | 18,814 | | | | | | — | | | | | | — | | | | | | 7,071 | | | | | | — | | | | | | 25,885 | | |
Research | | | | | 10,636 | | | | | | — | | | | | | — | | | | | | 30 | | | | | | — | | | | | | 10,666 | | |
Other | | | | | 11,355 | | | | | | — | | | | | | — | | | | | | 208 | | | | | | — | | | | | | 11,563 | | |
Total | | | | $ | 198,477 | | | | | $ | 342 | | | | | $ | — | | | | | $ | 11,809 | | | | | $ | — | | | | | $ | 210,628 | | |
Adjusted EBITDA | | | | $ | 47,969 | | | | | $ | (2,085) | | | | | $ | (125) | | | | | $ | (6,147) | | | | | $ | — | | | | | $ | 39,612 | | |
Total assets | | | | $ | 249,496 | | | | | $ | 2,340 | | | | | $ | 4,886 | | | | | $ | 6,881 | | | | | $ | 51,918 | | | | | $ | 315,521 | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||||||||||||||
| | | Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Net income (loss) | | | | $ | 36,418 | | | | | $ | 10,535 | | | | | $ | (2,878) | | | | | $ | (1,437) | | | | | $ | (4,637) | | | | | $ | 38,001 | | |
Interest expense | | | | | 786 | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 787 | | |
Interest income | | | | | (24) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24) | | |
Income taxes | | | | | 763 | | | | | | — | | | | | | — | | | | | | (67) | | | | | | 4,599 | | | | | | 5,295 | | |
Depreciation and amortization | | | | | 13,946 | | | | | | — | | | | | | 613 | | | | | | 212 | | | | | | — | | | | | | 14,771 | | |
Stock-based compensation | | | | | 3,240 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,240 | | |
Management fees | | | | | 1,008 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,008 | | |
Gain on sale of Forbes Media Hong Kong Limited | | | | | (1,577) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,577) | | |
| | | Year Ended December 31, 2021 | | |||||||||||||||||||||||||||||||||
| | | Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Severance and other expenses(1) | | | | | 3,052 | | | | | | — | | | | | | — | | | | | | 1,591 | | | | | | — | | | | | | 4,643 | | |
Other(2) | | | | | (5,769) | | | | | | — | | | | | | — | | | | | | (34) | | | | | | — | | | | | | (5,803) | | |
Adjusted EBITDA | | | | $ | 51,843 | | | | | $ | 10,535 | | | | | $ | (2,264) | | | | | $ | 265 | | | | | $ | (38) | | | | | $ | 60,341 | | |
|
| | | Year Ended December 31, 2020 | | |||||||||||||||||||||||||||||||||
| | | Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||
| | | (in thousands) | | |||||||||||||||||||||||||||||||||
Net income (loss) | | | | $ | 21,203 | | | | | | (2,972) | | | | | $ | (1,683) | | | | | $ | (5,680) | | | | | $ | (3,328) | | | | | $ | 7,540 | | |
Interest expense | | | | | 947 | | | | | | — | | | | | | (6) | | | | | | — | | | | | | — | | | | | | 941 | | |
Interest income | | | | | (25) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (25) | | |
Income taxes | | | | | 516 | | | | | | — | | | | | | — | | | | | | 162 | | | | | | 3,328 | | | | | | 4,006 | | |
Depreciation and amortization | | | | | 13,998 | | | | | | | | | | | | 150 | | | | | | 31 | | | | | | — | | | | | | 14,179 | | |
Stock-based compensation | | | | | (2,270) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (2,270) | | |
Management fees | | | | | 980 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 980 | | |
Severance and other expenses(1) | | | | | 5,210 | | | | | | — | | | | | | — | | | | | | 298 | | | | | | — | | | | | | 5,508 | | |
Goodwill impairment charge | | | | | — | | | | | | — | | | | | | — | | | | | | 727 | | | | | | — | | | | | | 727 | | |
Other(2) | | | | | 1,273 | | | | | | — | | | | | | — | | | | | | (331) | | | | | | — | | | | | | 942 | | |
Adjusted EBITDA | | | | $ | 41,832 | | | | | $ | (2,972) | | | | | $ | (1,539) | | | | | $ | (4,793) | | | | | $ | — | | | | | $ | 32,528 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||||||||||||||
| Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||||
| (in thousands) | | |||||||||||||||||||||||||||||||||||
Net income (loss) | | | | $ | 23,092 | | | | | $ | (2,085) | | | | | $ | (226) | | | | | $ | (7,446) | | | | | $ | (5,698) | | | | | $ | 7,637 | | |
Interest expense | | | | | 1,183 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,183 | | |
Interest income | | | | | (154) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (154) | | |
Income taxes | | | | | 647 | | | | | | — | | | | | | — | | | | | | 394 | | | | | | 5,698 | | | | | | 6,739 | | |
| | | Year Ended December 31, 2019 | | |||||||||||||||||||||||||||||||||
| Forbes Media | | | Marketplace | | | Quantalytics | | | Other | | | Corporate and other adjustments | | | Total | | ||||||||||||||||||||
| (in thousands) | | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | | | | | 13,750 | | | | | | — | | | | | | 101 | | | | | | 92 | | | | | | — | | | | | | 13,943 | | |
Stock-based compensation | | | | | 2,583 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,583 | | |
Management fees | | | | | 1,062 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,062 | | |
Severance and other expenses(1) | | | | | 4,374 | | | | | | — | | | | | | — | | | | | | 813 | | | | | | — | | | | | | 5,187 | | |
Other(2) | | | | | 1,432 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,432 | | |
Adjusted EBITDA | | | | $ | 47,969 | | | | | $ | (2,085) | | | | | $ | (125) | | | | | $ | (6,147) | | | | | $ | — | | | | | $ | 39,612 | | |
|
| | | Years Ended December 31, | | | |||||||||||||||||
| 2021 | | | 2020 | | | 2019 | | | |||||||||||||
| (in thousands) | | | | | |||||||||||||||||
Geographic Region: | | | | | | | | | | | | | | | | | | | | | ||
United States | | | | $ | 223,492 | | | | | $ | 155,731 | | | | | $ | 180,331 | | | | ||
Asia | | | | | 13,373 | | | | | | 16,806 | | | | | | 18,023 | | | | ||
Canada | | | | | 7,091 | | | | | | 4,037 | | | | | | 260 | | | | ||
Other | | | | | 15,193 | | | | | | 8,279 | | | | | | 12,014 | | | | ||
Total revenue | | | | $ | 259,149 | | | | | $ | 184,853 | | | | | $ | 210,628 | | | |
| | | As of December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Geographic Region: | | | | | | | | | | | | | |
United States | | | | $ | 118,988 | | | | | $ | 129,568 | | |
Asia | | | | | 128 | | | | | | 416 | | |
Total long-lived assets, net | | | | $ | 119,116 | | | | | $ | 129,984 | | |
| | | Years Ended December 31, | | |||||||||||||||
| | | 2021 | | | 2020 | | | 2019 | | |||||||||
| | | (in thousands) | | | | | | | | |||||||||
Cost of revenue (excluding depreciation and amortization) | | | | $ | 632 | | | | | $ | 554 | | | | | $ | 518 | | |
Sales and marketing | | | | | 217 | | | | | | 231 | | | | | | 228 | | |
Product development | | | | | 230 | | | | | | 199 | | | | | | 151 | | |
General and administrative | | | | | 38 | | | | | | 89 | | | | | | 12 | | |
Total | | | | $ | 1,117 | | | | | $ | 1,073 | | | | | $ | 909 | | |
Years Ending December 31, | | | | | | | |
2022 | | | | $ | 4,905 | | |
2023 | | | | | 4,593 | | |
2024 | | | | | 4,361 | | |
2025 | | | | | 1,757 | | |
2026 | | | | | 1,052 | | |
Thereafter | | | | | 726 | | |
Total future minimum lease payments | | | | $ | 17,394 | | |
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| Exhibit A – Form of A&R Purchaser Charter | | | | |
| Exhibit B – Form of Investor Rights Agreement | | | | |
| Exhibit C – Form of Investor Representation Letter | | | | |
| Exhibit D – Form of Option Surrender Agreement | | | | |
| Exhibit E – Incentive Equity Plan Term Sheet | | | | |
Term | | | Section | |
A&R Purchaser Charter | | | Recitals | |
AAA | | | Section 10.04(a) | |
ACA | | | Section 3.13(b) | |
Additional Purchaser SEC Reports | | | Section 5.14(a) | |
Adjustment Escrow Account | | | Section 2.04(c) | |
Adjustment Escrow Agreement | | | Section 2.04(c) | |
Adjustment Escrow Amount | | | Section 2.04(c) | |
Agreement | | | Preamble | |
Allocation Principles | | | Section 9.07 | |
Alternative Financing | | | Section 6.09(b) | |
Amendment to Services Agreement | | | Recitals | |
Audited Financial Statements | | | Section 3.05(a) | |
Balance Sheet Date | | | Section 3.05(a) | |
Business Combination | | | Section 5.19 | |
Cadwalader | | | Section 10.15(a) | |
Cadwalader Privileged Communications | | | Section 10.15(a) | |
Certificate | | | Section 2.04(a) | |
Certifications | | | Section 5.14(a) | |
Change in Recommendation | | | Section 6.07(d) | |
Claims | | | Section 6.11 | |
Closing | | | Section 2.01 | |
Closing Date. | | | Section 2.01 | |
Closing Statement | | | Section 2.03(a), Section 2.03(a) | |
Company | | | Preamble | |
Company Disclosure Letter | | | Article III | |
Company Indemnified Parties | | | Section 6.16(a) | |
Company Registered IP | | | Section 3.11(a) | |
Company Software | | | Section 3.11(i) | |
Continuing Employee | | | Section 6.23 | |
Contributor | | | Section 3.11(f) | |
Copyrights | | | Article I | |
D&O Indemnified Parties | | | Section 6.16(a) | |
Deferred Underwriting Commissions | | | Section 5.05 | |
Estimated Cash | | | Section 2.03(a) | |
Estimated Closing Consideration | | | Section 2.03(a) | |
Estimated Company Transaction Expenses | | | Section 2.03(a) | |
Estimated Net Working Capital | | | Section 2.03(a) | |
Estimated Outstanding Indebtedness | | | Section 2.03(a) | |
Final Consideration Shortfall | | | Section 2.05(e) | |
Final Consideration Surplus | | | Section 2.05(f) | |
Final Purchaser Trust Amount | | | Section 2.03(b) | |
Term | | | Section | |
Financial Statements | | | Section 3.05(a) | |
Forbes Group | | | Section 10.15(a) | |
Highlander | | | Preamble | |
Insurance Policies | | | Section 3.14 | |
Interim Financial Statements | | | Section 3.05(a) | |
Intervening Event Notice Period | | | Section 6.07(d) | |
Investor Representation Letter | | | Recitals | |
Investor Rights Agreement | | | Recitals | |
IPO | | | Section 6.11 | |
IWM | | | Preamble | |
JOBS Act | | | Section 5.14(d) | |
K&E | | | Section 10.15(b) | |
K&E Privileged Communications | | | Section 10.15(b) | |
Key Employee Employment Agreement | | | Section 6.18 | |
Leased Real Property | | | Section 3.08(b) | |
Marks | | | Article I | |
Material Contract | | | Section 3.10(b) | |
Maximum Annual Premium | | | Section 6.16(b) | |
Most Recent Balance Sheet Date | | | Section 3.05(a) | |
multiemployer plan | | | Section 3.13(d) | |
multiple employer welfare arrangement | | | Section 3.13(d) | |
Non-U.S. Plan | | | Section 3.13(h) | |
Notice of Objection | | | Section 2.05(b) | |
Objection Period | | | Section 2.05(b) | |
Offer | | | Recitals | |
Option Cash Out | | | Recitals | |
Option Surrender Agreement | | | Section 2.12 | |
Other Indemnitors | | | Section 6.16(e) | |
Parties | | | Preamble | |
Party | | | Preamble | |
Patents | | | Article I | |
Payroll Payment Amount | | | Section 2.12 | |
PIPE Investment | | | Recitals | |
PIPE Investment Amount | | | Section 5.15 | |
PIPE Investors | | | Section 5.15 | |
Post- Closing Consideration Calculation | | | Section 2.05(a) | |
Post-Closing Dispute | | | Section 10.05(a) | |
Postmaster Statements | | | Section 3.23 | |
Pre-Closing Disputes | | | Section 10.04(a) | |
Proxy Statement | | | Section 6.07(a) | |
Public Shareholders | | | Section 6.11 | |
Purchaser | | | Preamble | |
Purchaser Board | | | Recitals | |
Term | | | Section | |
Purchaser Board Recommendation | | | Section 6.07(d) | |
Purchaser Closing Statement | | | Section 2.03(b), Section 2.03(b) | |
Purchaser Disclosure Letter | | | Article V | |
Purchaser Group | | | Section 10.15(a) | |
Purchaser Incentive Plan | | | Section 6.19 | |
Purchaser Indemnified Parties | | | Section 6.16(a) | |
Purchaser Post-Closing Statement | | | Section 2.05(a) | |
Purchaser Prepared Returns | | | Section 9.03 | |
Purchaser Price Allocation | | | Section 9.07 | |
Purchaser SEC Reports | | | Section 5.14(a) | |
Purchaser Share Redemptions | | | Section 5.05 | |
Purchaser Shareholder Approval | | | Section 7.03(c) | |
Purchaser Special Meeting | | | Section 6.07(c) | |
Released Party | | | Section 10.14 | |
Reviewing Accountant | | | Section 2.05(d) | |
Rule | | | Section 10.04(a) | |
Section 16 | | | Section 6.13 | |
Sellers | | | Preamble | |
Share Sale | | | Recitals | |
Shareholders’ Representative | | | Preamble | |
Sponsor | | | Recitals | |
Subscription Agreement | | | Recitals | |
Subsidiary Shares | | | Section 3.04(a) | |
Support Agreement | | | Recitals | |
Tax Proceeding | | | Section 9.05 | |
Termination Date | | | Section 8.03(b) | |
Top Customers | | | Section 3.18 | |
Top Distributors | | | Section 3.18 | |
Top Suppliers | | | Section 3.18 | |
Trade Secrets | | | Article I | |
Transfer Taxes | | | Section 10.12 | |
| “Articles” | | | means these articles of association of the Company. | |
| “Auditor” | | | means the person for the time being performing the duties of auditor of the Company (if any). | |
| “Company” | | | means the above named company. | |
| “Designated Stock Exchange” | | | means any United States national securities exchange on which the securities of the Company are listed for trading, including the New York Stock Exchange. | |
| “Directors” | | | means the directors for the time being of the Company. | |
| “Dividend” | | | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. | |
| “Electronic Record” | | | has the same meaning as in the Electronic Transactions Act. | |
| “Electronic Transactions Act” | | | means the Electronic Transactions Act (As Revised) of the Cayman Islands. | |
| “Equity Securities” | | | means, with respect to any Person, all of the shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares or equity (or such other interests), restricted stock or restricted share awards, restricted stock or restricted share units, equity appreciation rights, phantom equity rights, profit participation and all of the other ownership or profit interests of such Person (including partnership or member interests therein), whether voting or nonvoting. | |
| “Exchange Act” | | | means the United States Securities Exchange Act of 1934, as amended, or any similar U.S. federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. | |
| “Highlander” | | | means Highlander Management LLC, a limied liability company incorporated in the State of Delaware. | |
| “Independent Directors” | | | means an individual who qualifies as “independent” as such term is used in the New York Stock Exchange rules. | |
| “Investor Rights Agreement” | | | means the investor rights agreements dated [ ] 2021 and made between, inter alia, the Company, the Sponsor, IWM, Highlander and the individuals listed as Other Holders therein. | |
| “IWM” | | | means Integrated Whale Media Investment Inc., a BVI business company incorporated under the laws of the British Virgin Islands. | |
| “Member” | | | has the same meaning as in the Statute. | |
| “Memorandum” | | | means the memorandum of association of the Company. | |
| “Minimum Member’ | | | means a Member meeting the minimum requirements set forth for eligible members to submit proposals under Rule 14a-8 of the Exchange Act or any applicable rules thereunder as may be amended or promulgated thereunder from time to time. | |
| “Nominating and Corporate Governance Committee” | | | means the nominating and corporate governance committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Ordinary Resolution” | | | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. | |
| “Ordinary Share” | | | means an ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Person” | | | means and includes an individual, a partnership (general or limited), a joint venture, a corporation, a company, a trust, an estate, a limited liability company, an association, a joint-stock company, an unincorporated organization or other entity and a governmental entity. | |
| “Preference Share” | | | means a preference share of a par value of US$0.0001 in the share capital of the Company. | |
| “Register of Members” | | | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. | |
| “Registered Office” | | | means the registered office for the time being of the Company. | |
| “Seal” | | | means the common seal of the Company and includes every duplicate seal. | |
| “Share” | | | means an Ordinary Share or a Preference Share and includes a fraction of a share in the Company. | |
| “Special Resolution” | | | has the same meaning as in the Statute, and includes a unanimous written resolution. | |
| “Sponsor” | | | means Magnum Opus Holdings LLC, a Cayman Islands limited liability company, and its successors or assigns. | |
| “Statute” | | | means the Companies Act (As Revised) of the Cayman Islands. | |
| “Subscriber” | | | means the subscriber to the Memorandum. | |
| “Treasury Share” | | | means a Share held in the name of the Company as a treasury share in accordance with the Statute. | |
Ordinary Shares Beneficially Owned by Sponsor and the Other Holders (and their Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by Sponsor and the Other Holders on the Closing Date | | | Number of Sponsor Directors | | |||
50% or greater | | | | | 1 | | |
Ordinary Shares Beneficially Owned by IWM (and its Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by IWM on the Closing Date | | | Number of IWM Directors | | |||
40% or greater | | | | | 2 | | |
12.5% or greater, but less than 40% | | | | | 1 | | |
Options Owned | | ||||||
Name | | | # of Company Options | | | Per Share Exercise Price | |
| | | | | | | |
| | | | | | | |
| |||||
Ordinary Shares Beneficially Owned by Sponsor and the Other Holders (and their Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by Sponsor and the Other Holders on the Closing Date | | | Number of Sponsor Directors | | |||
50% or greater | | | | | 1 | | |
Ordinary Shares Beneficially Owned by IWM (and its Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by IWM on the Closing Date | | | Number of IWM Directors | | |||
40% or greater | | | | | 2 | | �� |
12.5% or greater, but less than 40% | | | | | 1 | | |
Options Owned | | ||||||
Name | | | # of Company Options | | | Per Share Exercise Price | |
| | | | | | | |
| | | | | | | |
Ordinary Shares Beneficially Owned by Sponsor and the Other Holders (and their Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by Sponsor and the Other Holders on the Closing Date | | | Number of Sponsor Directors | | |||
50% or greater | | | | | 1 | | |
Ordinary Shares Beneficially Owned by IWM (and its Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by IWM on the Closing Date | | | Number of IWM Directors | | |||
40% or greater | | | | | 2 | | �� |
12.5% or greater, but less than 40% | | | | | 1 | | |
Options Owned | | ||||||
Name | | | # of Company Options | | | Per Share Exercise Price | |
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| | | | | | | |
| Share Reserve / Evergreen | | | Purchaser shall create a new equity incentive plan (the “Plan”) with an award pool equal to 8,300,000 shares of Purchaser (the “Share Reserve”). The Share Reserve will automatically increase on the first day of each calendar year by a share amount equal to the lesser of (i) 3% aggregate common stock outstanding immediately preceding the calendar year, and (ii) such smaller number determined by Board (defined below). | |
| Plan Awards and Administration | | | The Plan shall be administered by the Board of Directors of Purchaser (the “Board”) or committee thereof. Employees, directors, and independent contractors of the Purchaser and its subsidiaries will be eligible for awards of options, stock appreciation rights, restricted stock, restricted stock units, stock appreciation rights, other stock-based awards, dividend equivalents and cash awards. Awards will be made by the Board on terms and conditions it establishes in its discretion. | |
| Director Share Limits | | | The maximum number of shares subject to awards granted during a single fiscal year to any non-employee director, together with any cash fees paid to such non-employee director during the fiscal year, shall not exceed a total value of $750,000, increased to $1,000,000 in the directors first year of service. | |
| Share Reserve / Evergreen | | | Purchaser shall create an employee stock purchase plan (the “ESPP”) with a Share Reserve equal to 2% of Purchaser’s outstanding common stock immediately after the Closing. The Share Reserve will automatically increase on the first day of each calendar year by a share amount equal to the lesser of (i) 0.5% aggregate common stock outstanding immediately preceding the calendar year, and (ii) such smaller number determined by Board. The ESPP will have both Section 423 of the Internal Revenue Code (“Section 423”) qualified components and non-Section 423 qualified components. | |
| Plan Benefits, Administration and Other Terms | | | The ESPP will be administered by the Board or committee thereof (the “Board”), offering employees of Purchaser and its subsidiaries the ability to purchase shares at up to a 15% discount over such purchase periods as the Board determines in its discretion up to the limits set forth in Section 423. Other plan terms will be reasonable and customary for a similar public company employee stock purchase plan. | |
| “Articles” | | | means these articles of association of the Company. | |
| “Auditor” | | | means the person for the time being performing the duties of auditor of the Company (if any). | |
| “Binance” | | | means Binance Capital Management Co., Ltd., a business company incorporated under the laws of the British Virgin Islands. | |
| “Company” | | | means the above named company. | |
| “Designated Stock Exchange” | | | means any United States national securities exchange on which the securities of the Company are listed for trading, including the New York Stock Exchange. | |
| “Directors” | | | means the directors for the time being of the Company. | |
| “Dividend” | | | means any dividend (whether interim or final) resolved to be paid on Shares pursuant to the Articles. | |
| “Electronic Record” | | | has the same meaning as in the Electronic Transactions Act. | |
| “Electronic Transactions Act” | | | means the Electronic Transactions Act (As Revised) of the Cayman Islands. | |
| “Equity Securities” | | | means, with respect to any Person, all of the shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock, shares or equity of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares or equity (or such other interests), restricted stock or restricted share awards, restricted stock or restricted share units, equity appreciation rights, phantom equity rights, profit participation and all of the other ownership or profit interests of such Person (including partnership or member interests therein), whether voting or nonvoting. | |
| “Exchange Act” | | | means the United States Securities Exchange Act of 1934, as amended, or any similar U.S. federal statute and the rules and regulations of the Securities and Exchange Commission thereunder, all as the same shall be in effect at the time. | |
| “Highlander” | | | means Highlander Management LLC, a limied liability company incorporated in the State of Delaware. | |
| “Independent Directors” | | | means an individual who qualifies as “independent” as such term is used in the New York Stock Exchange rules. | |
| “Investor Rights Agreement” | | | means the amended and restated investor rights agreement dated February 10, 2022 and made between, inter alia, the Company, the Sponsor, IWM and Binance, which amended and restated that certain investor rights agreement dated August 26, 2021. | |
| “IWM” | | | means Integrated Whale Media Investment Inc., a BVI business company incorporated under the laws of the British Virgin Islands. | |
| “Member” | | | has the same meaning as in the Statute. | |
| “Memorandum” | | | means the memorandum of association of the Company. | |
| “Minimum Member’ | | | means a Member meeting the minimum requirements set forth for eligible members to submit proposals under Rule 14a-8 of the Exchange Act or any applicable rules thereunder as may be amended or promulgated thereunder from time to time. | |
| “Nominating and Corporate Governance Committee” | | | means the nominating and corporate governance committee of the board of directors of the Company established pursuant to the Articles, or any successor committee. | |
| “Ordinary Resolution” | | | means a resolution passed by a simple majority of the Members as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at a general meeting, and includes a unanimous written resolution. In computing the majority when a poll is demanded regard shall be had to the number of votes to which each Member is entitled by the Articles. | |
| “Ordinary Share” | | | means an ordinary share of a par value of US$0.0001 in the share capital of the Company. | |
| “Person” | | | means and includes an individual, a partnership (general or limited), a joint venture, a corporation, a company, a trust, an estate, a limited liability company, an association, a joint-stock company, an unincorporated organization or other entity and a governmental entity. | |
| “Preference Share” | | | means a preference share of a par value of US$0.0001 in the share capital of the Company. | |
| “Register of Members” | | | means the register of Members maintained in accordance with the Statute and includes (except where otherwise stated) any branch or duplicate register of Members. | |
| “Registered Office” | | | means the registered office for the time being of the Company. | |
| “Seal” | | | means the common seal of the Company and includes every duplicate seal. | |
| “Share” | | | means an Ordinary Share or a Preference Share and includes a fraction of a share in the Company. | |
| “Special Resolution” | | | has the same meaning as in the Statute, and includes a unanimous written resolution. | |
| “Sponsor” | | | means Magnum Opus Holdings LLC, a Cayman Islands limited liability company, and its successors or assigns. | |
| “Statute” | | | means the Companies Act (As Revised) of the Cayman Islands. | |
| “Subscriber” | | | means the subscriber to the Memorandum. | |
| “Treasury Share” | | | means a Share held in the name of the Company as a treasury share in accordance with the Statute. | |
| Signature: | | | /s/ Hou Pu Jonathan Lin | | | | |
| Name: | | | Hou Pu Jonathan Lin | | | | |
| Title: | | | Manager | | | | |
| /s/ Hou Pu Jonathan Lin Hou Pu Jonathan Lin | | | | |
| /s/ Ka Man Kevin Lee Ka Man Kevin Lee | | | ||
| /s/ Frank Han Frank Han | | | ||
| /s/ Alexandre Mathieu Valdemar Casin Alexandre Mathieu Valdemar Casin | | | ||
| /s/ Liu Xing Ling Liu Xing Ling | | | ||
| /s/ Wing Hong Sammy Hsieh Wing Hong Sammy Hsieh | | | ||
| /s/ Dickson Cheng Dickson Cheng | | | ||
| /s/ Tung Wai Hui Tung Wai Hui | | |
| Signature: | | | /s/ Hou Pu Jonathan Lin | |
| Name: | | | Hou Pu Jonathan Lin | |
| Title: | | | Chief Executive Officer | |
| Signature: | | | /s/ Yam Tak Cheung | |
| Name: | | | Yam Tak Cheung | |
| Title: | | | Director | |
Name of Shareholder | | | Number of Purchaser Class B Shares | | | Number of Purchaser Warrants | | | Address for Notice | | ||||||
Sponsor(1) | | | | | 4,500,000(1) | | | | | | 6,000,000(1) | | | | Unit 1009, ICBC Tower Three Garden Road, Central, Hong Kong | |
Hou Pu Jonathan Lin(1) | | | | | 4,500,000(1) | | | | | | 6,000,000(1) | | | |||
Ka Man Kevin Lee | | | | | 162,500 | | | | | | / | | | |||
Frank Han | | | | | 162,500 | | | | | | / | | | |||
Alexandre Mathieu Valdemar Casin | | | | | 50,000 | | | | | | / | | | | | |
Liu Xing Ling | | | | | 25,000 | | | | | | / | | | | | |
Wing Hong Sammy Hsieh | | | | | 50,000 | | | | | | / | | | | | |
Dickson Cheng | | | | | 25,000 | | | | | | / | | | | | |
Tung Wai Hui | | | | | 25,000 | | | | | | / | | | | | |
Ordinary Shares Beneficially Owned by Sponsor and the Other Holders (and their Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by Sponsor and the Other Holders on the Closing Date | | | Number of Sponsor Directors | | |||
50% or greater | | | | | 1 | | |
Ordinary Shares Beneficially Owned by IWM (and its Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by IWM on the Closing Date | | | Number of IWM Directors | | |||
40% or greater | | | | | 2 | | |
12.5% or greater, but less than 40% | | | | | 1 | | |
Ordinary Shares Beneficially Owned by Binance (and its Permitted Transferees) as a Percentage of the Ordinary Shares Beneficially Owned by Binance on the Closing Date | | | Number of Binance Directors | | |||
40% or greater | | | | | 2 | | |
12.5% or greater, but less than 40% | | | | | 1 | | |
| By: /s/ Hou Pu Jonathan Lin | | | ||
| Name: Hou Pu Jonathan Lin Title: Chief Executive Officer | | | | |
| By: /s/ Hou Pu Jonathan Lin | | | ||
| Name: Hou Pu Jonathan Lin Title: Manager | | | | |
| By: /s/ Yam Tak Cheung | | | ||
| Name: Yam Tak Cheung Title: Director | | | | |
| By: /s/ Changpeng Zhao | | | ||
| Name: Changpeng Zhao Title: Director | | | | |
| By: Name: Title: | | | | |
| By: Name: Title: Address for notices: | | | | |
Bank Name: | |
Bank Address: | |
ABA No.: | |
Account Name: | |
Account No.: | |
Bank Name: | |
Bank Address: | |
ABA No.: | |
Account Name: | |
Bank Name: | |
Bank Address: | |
ABA No.: | |
Account Name: | |
Account No.: | |
Account No.: | |
Bank Name: | |
Bank Address: | |
ABA No.: | |
Account Name: | |
Account No.: | |
| | | | U.S. Bank National Association, as Escrow Agent | | ||||||
| | | | ATTN: Global Corporate Trust Services | | ||||||
| | | | Address: | | | | | | | |
| | | | Telephone: | | | | | | | |
| | | | E-mail: | | | | | | | |
| | | | U.S. Bank National Association | | ||||||
| | | | ATTN: Trust Finance Management | | ||||||
| | | | Address: | | | | | | | |
| | | | Telephone: | | | | | | | |
| | | | E-mail: | | | | | | | |
| | | | MAGNUM OPUS ACQUISITION LIMITED as Purchaser | | ||||||
| | | By: | | | | | | | | |
| | | | Name: | | | | | | | |
| | | | Title: | | | | | | ||
| | | | INTEGRATED WHALE MEDIA INVESTMENT, INC. as Shareholders’ Representative | | ||||||
| | | | By: | | | | | | | |
| | | | Name: | | | | | | | |
| | | | Title: | | | | | | | |
| | | | U.S. BANK NATIONAL ASSOCIATION as Escrow Agent | | ||||||
| | | | By: | | | | | | | |
| | | | Name: | | | | | | | |
| | | | Title: | | | | | | | |
| | | | | | | | | | | |
| Name | | | Specimen signature | | | Telephone No. | | | | |
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| Name | | | Specimen signature | | | Telephone No. | | | | |
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| Name | | | Specimen signature | | | Telephone No. | | | | |
| Name | | | | | | Telephone Number | | | | |
| | | | | | | | | | | |
| Name | | | Specimen signature | | | Telephone No. | | | ||
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| Name | | | Specimen signature | | | Telephone No. | | | ||
| | | | | | | | | | ||
| Name | | | Specimen signature | | | Telephone No. | | |
| Name | | | | | | Telephone Number | | | | |
| | | | Purchaser | | | ||
| | | | Bank Name: | | | | |
| | | | Bank Address: | | | | |
| | | | ABA No.: | | | | |
| | | | Account Name: | | | | |
| | | | Account No.: | | | | |
| AND/OR | | | | | | ||
| | | | IWM | | | ||
| | | | Bank Name: | | | | |
| | | | Bank Address: | | | | |
| | | | ABA No.: | | | | |
| | | | Account Name: | | | | |
| | | | Account No.: | | | | |
| | | | Amount: | | | | |
| | | | Highlander | | | ||
| | | | Bank Name: | | | | |
| | | | Bank Address: | | | | |
| | | | ABA No.: | | | | |
| | | | Account Name: | | | | |
| | | | Account No.: | | | | |
| | | | Amount: | | | | |
| | | | Optionholders | | | ||
| | | | Bank Name: | | | | |
| | | | Bank Address: | | | | |
| | | | ABA No.: | | | | |
| | | | Account Name: | | | | |
| | | | Account No.: | | | | |
| | | | Amount: | | | | |
| Magnum Opus Acquisition Limited | | | ||
| By: | | | | |
| Name: | | | | |
| Date: | | | | |
| Integrated Whale Media Investment, Inc. | | | | |
| By: | | | | |
| Name: | | | | |
| Date: �� | | | | |
| Name of Investor: | | | State/Country of Formation or Domicile: | |
| By: | | | | | | | | | | |
| Name: | | | | | | | | | ||
| Title: | | | | | | | | | ||
| Name in which Shares are to be registered (if different): | | | Date: , 2021 | | ||||||
| Investor’s EIN: | | | | | ||||||
| Business Address-Street: | | | Mailing Address-Street (if different): | | ||||||
| City, State, Zip: | | | City, State, Zip: | |
| Attn: | | | | | | Attn: | | | | |
| Telephone No.: | | | Telephone No.: | | ||||||
| Facsimile No.: | | | Facsimile No.: | | ||||||
| Number of Shares subscribed for: | | | | | ||||||
| Aggregate Subscription Amount: $ | | | Price Per Share: $10.00 | |
| | | | | | | MAGNUM OPUS ACQUISITION LIMITED | | |||
| | | | | | | By: | | | | |
| | | | | | | Name: | | | ||
| | | | | | | Title: | | | ||
| Date: | | | | | | | | | | |