| Rohan Ajila | | | | |
| Gautham Pai Co-Chairman of the Board of Directors | | | | |
| Global Consumer Acquisition Corp. October | | | | |
| Rohan Ajila | | | | |
| Gautham Pai Co-Chairman of the Board of Directors | | | | |
| Global Consumer Acquisition Corp. October | | | | |
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Comparables list | | | Enterprise Value | | | Revenue (ttm) | | | EBITDA (ttm) | | | EV/Revenue | | | EV/EBITDA | | | EBITDA % | | | 3 Yr CAGR | | |||||||||||||||||||||
Leifheit AG | | | | | 301.0 | | | | | | 295.6 | | | | | | 28.1 | | | | | | 1.02 | | | | | | 13.0 | | | | | | 10% | | | | | | 4.7% | | |
Ontex Group | | | | | 1,490.0 | | | | | | 2,013.9 | | | | | | 153.5 | | | | | | 0.7 | | | | | | 4.3 | | | | | | 8% | | | | | | -4.0% | | |
Treehouse Foods | | | | | 4,120.0 | | | | | | 4,338.9 | | | | | | 361.0 | | | | | | 0.9 | | | | | | 9.1 | | | | | | 8% | | | | | | -11.6% | | |
Primo Water Corp | | | | | 4,430.0 | | | | | | 2,060.3 | | | | | | 272.9 | | | | | | 2.2 | | | | | | 13.0 | | | | | | 13% | | | | | | -4.9% | | |
Post Holdings | | | | | 12,830.0 | | | | | | 6,226.7 | | | | | | 907.4 | | | | | | 2.1 | | | | | | 12.3 | | | | | | 15% | | | | | | 0.2% | | |
Mean | | | | | | | | | | | | | | | | | | | | | | | 1.4x | | | | | | 10.3x | | | | | | | | | | | | | | |
Median | | | | | | | | | | | | | | | | | | | | | | | 1.3x | | | | | | 12.3x | | | | | | | | | | | | | | |
Luminex Valuation | | | | | | | |
WACC | | | | | 9.17% | | |
Terminal Growth Rate | | | | | 0.50% | | |
DCF for Luminex | | | 12 months | | | 12 months | | | 12 months | | | 12 months | | | 12 months | | |||||||||||||||
Particulars | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | | TVG | | |||||||||||||||
Sales | | | | | 391 | | | | | | 405 | | | | | | 420 | | | | | | 436 | | | | | | 438 | | |
YOY | | | | | | | | | | | 4% | | | | | | 4% | | | | | | 4% | | | | | | 0.5% | | |
EBITDA | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | | | | | 42 | | |
EBITDA Margins | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | | | | | 10% | | |
Changes in Working Capital | | | | | 1.9 | | | | | | 2.5 | | | | | | -0.1 | | | | | | 4.2 | | | | | | 0.2 | | |
Capex | | | | | 4.4 | | | | | | 4.6 | | | | | | 4.6 | | | | | | 4.6 | | | | | | 4.6 | | |
Tax | | | | | 0.9 | | | | | | 1.0 | | | | | | 1.1 | | | | | | 1.1 | | | | | | 7.9 | | |
FCFF | | | | | 25.4 | | | | | | 29.6 | | | | | | 36.9 | | | | | | 36.9 | | | | | | 29.5 | | |
Cash Accrual Factor | | | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 4.0 | | |
DF | | | | | 0.9 | | | | | | 0.8 | | | | | | 0.8 | | | | | | 0.7 | | | | | | 0.7 | | |
Present Value of Cash Flow | | | | | 23.3 | | | | | | 24.8 | | | | | | 28.3 | | | | | | 26.0 | | | | | | 20.8 | | |
Sum of Present Value | | | | | 102 | | | | | | 30% | | | | | | | | | | | | | | | | | | | | |
Terminal Value | | | | | 240 | | | | | | 70% | | | | | | | | | | | | | | | | | | | | |
Enterprise Value | | | | | 342 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2 Year Forward Average Target EBITDA ($ M) | | | Entry Multiple | | | Enterprise Valuation ($ M) | | |||||||||
PIL (Indian subsidiary) | | | | | 16 | | | | | | 6.5 | | | | | | 104 | | |
GP Consolidated | | | | | 45 | | | | | | 6.5 | | | | | | 293 | | |
GP Global Consolidated | | | | | 45 | | | | | | 8.0 | | | | | | 360 | | |
Enterprise Value | | | $ M | | | Notes | | |||
MVP (US Subsidiary) | | | | | 233 | | | | | |
PIL (India Subsidiary) | | | | | 108 | | | | | |
LS (to be acquired by PIL) | | | | | 8 | | | | Forward purchase agreement in place between PIL and LS | |
GC (Investment by MVP) | | | | | 77 | | | | MVP owns 50% of Goose Creek (GC) | |
GP Aggregate Enterprise Value | | | | | 426 | | | | | |
MVP Valuation | | | | | | | |
WACC | | | | | 7.76% | | |
Growth Rate | | | | | 0.50% | | |
DCF for MVP | | | 12 months | | | 12 months | | | 12 months | | | 12 months | | | Terminal Value | | |||||||||||||||
Particulars | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | ||||||||||||||||||
Sales | | | | | 130 | | | | | | 171 | | | | | | 198 | | | | | | 218 | | | | | | 220 | | |
YOY | | | | | | | | | | | 31% | | | | | | 16% | | | | | | 10% | | | | | | 0.50% | | |
EBITDA | | | | | 9 | | | | | | 16 | | | | | | 21 | | | | | | 26 | | | | | | 26 | | |
EBITDA Margins | | | | | 7% | | | | | | 9% | | | | | | 11% | | | | | | 12% | | | | | | 12% | | |
Changes in Working Capital | | | | | 9 | | | | | | 12 | | | | | | 8 | | | | | | 7 | | | | | | 0.28 | | |
Capex | | | | | (4.8) | | | | | | 0.5 | | | | | | 0.5 | | | | | | 0.5 | | | | | | 0.5 | | |
Tax | | | | | — | | | | | | — | | | | | | — | | | | | | 3 | | | | | | 5 | | |
FCFF | | | | | 6 | | | | | | 3 | | | | | | 12 | | | | | | 16 | | | | | | 20 | | |
Cash Accrual Factor | | | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 4.0 | | |
DF | | | | | 0.9 | | | | | | 0.9 | | | | | | 0.8 | | | | | | 0.7 | | | | | | 0.7 | | |
Present Value of Cash Flows | | | | | 5 | | | | | | 3 | | | | | | 10 | | | | | | 12 | | | | | | 15 | | |
Sum of Present Value | | | | | 29 | | | | | | 14% | | | | | | | | | | | | | | | | | | | | |
Terminal Value | | | | | 204 | | | | | | 86% | | | | | | | | | | | | | | | | | | | | |
Enterprise Value | | | | | 233 | | | | | | | | | | | | | | | | | | | | | | | | | | |
PIL Valuation | | | | | | | |
WACC | | | | | 15.14% | | |
Growth Rate | | | | | 4.00% | | |
DCF for PIL | | | 12 months | | | 12 months | | | 12 months | | | 12 months | | | Terminal Value | | |||||||||||||||
Particulars | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | ||||||||||||||||||
Sales | | | | | 106 | | | | | | 132 | | | | | | 142 | | | | | | 153 | | | | | | 159 | | |
YOY | | | | | | | | | | | 24% | | | | | | 8% | | | | | | 8% | | | | | | 4% | | |
EBITDA | | | | | 15 | | | | | | 20 | | | | | | 22 | | | | | | 24 | | | | | | 25 | | |
EBITDA Margins | | | | | 14% | | | | | | 15% | | | | | | 15% | | | | | | 16% | | | | | | 16% | | |
Changes in Working Capital . | | | | | 12 | | | | | | 1 | | | | | | 2 | | | | | | 2 | | | | | | 1 | | |
Capex | | | | | 1 | | | | | | 3 | | | | | | 0 | | | | | | 1 | | | | | | 1 | | |
Tax | | | | | 4 | | | | | | 6 | | | | | | 6 | | | | | | 7 | | | | | | 7 | | |
FCFF | | | | | -3 | | | | | | 11 | | | | | | 14 | | | | | | 14 | | | | | | 17 | | |
Cash Accrual Factor | | | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 4.0 | | |
DF | | | | | 0.9 | | | | | | 0.8 | | | | | | 0.7 | | | | | | 0.6 | | | | | | 0.6 | | |
Present Value of Cash Flow | | | | | (2) | | | | | | 8 | | | | | | 9 | | | | | | 8 | | | | | | 9 | | |
Sum of Present Value | | | | | 23 | | | | | | 21% | | | | | | | | | | | | | | | | | | | | |
Terminal Value | | | | | 85 | | | | | | 79% | | | | | | | | | | | | | | | | | | | | |
Enterprise Value | | | | | 108 | | | | | | | | | | | | | | | | | | | | | | | | | | |
LS Valuation | | | | | | | |
WACC | | | | | 13.80% | | |
Growth Rate | | | | | 4.00% | | |
DCF for LS | | | 12 months | | | 12 months | | | 12 months | | | 12 months | | | Terminal Value | | |||||||||||||||
Particulars | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | ||||||||||||||||||
Sales | | | | | 12 | | | | | | 18 | | | | | | 19 | | | | | | 20 | | | | | | 21 | | |
YOY | | | | | | | | | | | 49% | | | | | | 8% | | | | | | 7% | | | | | | 4% | | |
EBITDA | | | | | 1 | | | | | | 2 | | | | | | 2 | | | | | | 2 | | | | | | 2 | | |
EBITDA Margins | | | | | 10% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | |
Changes in Working Capital. . | | | | | 3 | | | | | | 1 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Capex | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | — | | | | | | — | | |
Tax | | | | | 0 | | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
FCFF | | | | | -2 | | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Cash Accrual Factor | | | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 4.0 | | |
DF | | | | | 0.9 | | | | | | 0.8 | | | | | | 0.7 | | | | | | 0.6 | | | | | | 0.6 | | |
Present Value of Cash Flows | | | | | (2) | | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Sum of Present Value | | | | | -0 | | | | | | -2% | | | | | | | | | | | | | | | | | | | | |
Terminal Value | | | | | 8 | | | | | | 102% | | | | | | | | | | | | | | | | | | | | |
Enterprise Value | | | | | 8 | | | | | | | | | | | | | | | | | | | | | | | | | | |
GC Valuation | | | | | | | |
WACC | | | | | 8.02% | | |
Growth Rate | | | | | 1.00% | | |
DCF for GC | | | 12 months | | | 12 months | | | 12 months | | | 12 months | | | Terminal Value | | |||||||||||||||
Particulars | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | ||||||||||||||||||
Sales | | | | | 45 | | | | | | 53 | | | | | | 64 | | | | | | 77 | | | | | | 78 | | |
YOY | | | | | | | | | | | 20% | | | | | | 20% | | | | | | 20% | | | | | | 1% | | |
EBITDA | | | | | 9 | | | | | | 11 | | | | | | 13 | | | | | | 15 | | | | | | 16 | | |
EBITDA Margins | | | | | 20% | | | | | | 20% | | | | | | 20% | | | | | | 20% | | | | | | 20% | | |
Changes in Working Capital | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 2 | | | | | | 0 | | |
Capex | | | | | — | | | | | | — | | | | | | 0 | | | | | | — | | | | | | — | | |
Tax | | | | | 2 | | | | | | 2 | | | | | | 3 | | | | | | 3 | | | | | | 3 | | |
FCFF | | | | | 6 | | | | | | 7 | | | | | | 9 | | | | | | 11 | | | | | | 12 | | |
Cash Accrual Factor | | | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 4.0 | | |
DF | | | | | 0.9 | | | | | | 0.9 | | | | | | 0.8 | | | | | | 0.7 | | | | | | 0.7 | | |
Present Value of Cash Flows | | | | | 6 | | | | | | 6 | | | | | | 7 | | | | | | 8 | | | | | | 9 | | |
Sum of Present Value | | | | | 27 | | | | | | 17% | | | | | | | | | | | | | | | | | | | | |
Terminal Value | | | | | 128 | | | | | | 83% | | | | | | | | | | | | | | | | | | | | |
Enterprise Value | | | | | 155 | | | | | | | | | | | | | | | | | | | | | | | | | | |
MVP Ownership Value | | | | | 77 | | | | | | | | | | | | | | | | | | | | | | | | | | |
Summary | | No redemptions, warrants not exercised | | No redemptions, warrants exercised | | $50 M redemptions, warrants exercised | | Max redemptions, warrants exercised | | | No redemptions, warrants not exercised | | No redemptions, warrants exercised | | $50 M redemptions, warrants exercised | | Max redemptions, warrants exercised | | ||||||||||||||||||||||||||||||||
Public shareholders | | | | 64.06% | | | | | 70.64% | | | | | 65.14% | | | | | 36.93% | | | | | | 58.07% | | | | | 67.68% | | | | | 63.25% | | | | | 41.50% | | | ||||||||
Sponsor Shares | | | | 11.74% | | | | | 9.88% | | | | | 11.73% | | | | | 21.22% | | | | | | 15.96% | | | | | 12.30% | | | | | 13.99% | | | | | 22.26% | | | ||||||||
Target (GP Global) shares | | | | 24.20% | | | | | 19.48% | | | | | 23.13% | | | | | 41.85% | | | | | | 25.98% | | | | | 20.02% | | | | | 22.77% | | | | | 36.23% | | | ||||||||
Total | | | | 100% | | | | | 100% | | | | | 100% | | | | | 100% | | | | | | 100% | | | | | 100% | | | | | 100% | | | | | 100% | | |
| | No Redemption, warrants not exercised | | No Redemption, warrants exercised | | $50 M Redemption, warrants exercised | | Max Redemption ($185.4 M), warrants exercised | | | No Redemption, warrants not exercised | | No Redemption, warrants exercised | | $50 M Redemption, warrants exercised | | Max Redemption ($185.4 M), warrants exercised | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Number of Shares | | Ownership % | | Number of Shares | | Ownership % | | Number of Shares | | Ownership % | | Number of Shares | | Ownership % | | | Number of Shares | | Ownership % | | Number of Shares | | Ownership % | | Number of Shares | | Ownership % | | Number of Shares | | Ownership % | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Shares Outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Public Shares issued in GACQ IPO | | | | 18,263,000 | | | | | 54.31% | | | | | 18,263,000 | | | | | 42.48% | | | | | 18,263,000 | | | | | 47.98% | | | | | 18,263,000 | | | | | 73.87% | | | | | | 18,263,000 | | | | | 58.07% | | | | | 18,263,000 | | | | | 44.63% | | | | | 18,263,000 | | | | | 50.89% | | | | | 18,263,000 | | | | | 81.00% | | | ||||||||||||||||
Redemptions in connection with the Business Combination | | | | 0 | | | | | 0.00% | | | | | 0 | | | | | 0.00% | | | | | -4,926,108 | | | | | -12.94% | | | | | -18,263,000 | | | | | 73.87% | | | | | | 0 | | | | | 0.00% | | | | | 0 | | | | | 0.00% | | | | | -4,926,108 | | | | | -13.72% | | | | | -18,263,000 | | | | | 81.00% | | | ||||||||||||||||
Shares held by Public Stockholders post-redemptions | | | | 18,263,000 | | | | | 54.31% | | | | | 18,263,000 | | | | | 42.48% | | | | | 13,336,892 | | | | | 35.04% | | | | | 0 | | | | | 0.00% | | | | | | 18,263,000 | | | | | 58.07% | | | | | 18,263,000 | | | | | 44.63% | | | | | 13,336,892 | | | | | 37.17% | | | | | 0 | | | | | 0.00% | | | ||||||||||||||||
Founder Shares issued to Sponsor pre-GACQ IPO | | | | 4,565,750 | | | | | 13.58% | | | | | 4,565,750 | | | | | 10.62% | | | | | 4,565,750 | | | | | 12.00% | | | | | 4,565,750 | | | | | 18.47% | | | | | | 4,565,750 | | | | | 14.52% | | | | | 4,565,750 | | | | | 11.16% | | | | | 4,565,750 | | | | | 12.72% | | | | | 4,565,750 | | | | | 20.25% | | | ||||||||||||||||
Private Shares issued to Sponsor at close of GACQ IPO | | | | 453,612 | | | | | 1.35% | | | | | 453,612 | | | | | 1.06% | | | | | 453,612 | | | | | 1.19% | | | | | 453,612 | | | | | 1.83% | | | | | | 453,612 | | | | | 1.4% | | | | | 453,612 | | | | | 1.11% | | | | | 453,612 | | | | | 1.26% | | | | | 453,612 | | | | | 2.01% | | | ||||||||||||||||
Shares issued in connection with the Business Combination and assumed exercise of warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Shares of Common Stock issued to GP Global Equity Shareholders | | | | 10,346,400 | | | | | 30.76% | | | | | 10,346,400 | | | | | 24.07% | | | | | 10,346,400 | | | | | 27.18% | | | | | 10,346,400 | | | | | 41.85% | | | | | | 8,170,000 | | | | | 25.98% | | | | | 8,170,000 | | | | | 19.97% | | | | | 8,170,000 | | | | | 22.77% | | | | | 8,170,000 | | | | | 36.23% | | | ||||||||||||||||
$11.50 strike warrants held by Public Stockholders | | | | 0 | | | | | 0.00% | | | | | 9,131,500 | | | | | 21.24% | | | | | 9,131,500 | | | | | 23.99% | | | | | 9,131,500 | | | | | 36.93% | | | | | | 0 | | | | | 0.00% | | | | | 9,131,500 | | | | | 22.32% | | | | | 9,131,500 | | | | | 25.45% | | | | | 9,131,500 | | | | | 40.50% | | | ||||||||||||||||
$11.50 strike Private Warrants held by Sponsors | | | | 0 | | | | | 0.00% | | | | | 226,806 | | | | | 0.53% | | | | | 226,806 | | | | | 0.60% | | | | | 226,806 | | | | | 0.92% | | | | | | 0 | | | | | 0.00% | | | | | 226,806 | | | | | 0.55% | | | | | 226,806 | | | | | 0.63% | | | | | 226,806 | | | | | 1.01% | | | ||||||||||||||||
Total | | | | 33,628,763 | | | | | 100.00% | | | | | 42,987,068 | | | | | 100.00% | | | | | 38,060,860 | | | | | 100.00% | | | | | 24,724,068 | | | | | 100.00% | | | | | | 31,452,362 | | | | | 100.00% | | | | | 40,810,668 | | | | | 100.00% | | | | | 35,884,560 | | | | | 100.00% | | | | | 22,547,668 | | | | | 100.00% | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Cash and cash equivalents | | | $ | 4,084 | | | | | 1,300 | | | | $ | 83 | | | | $ | 185,439 | | | A | | | $ | 90,748 | | | | $ | (185,386) | | | J | | | $ | — | | | | | $ | 4,084 | | | | | 1,300 | | | | $ | 83 | | | | $ | 185,439 | | | A | | | $ | 90,748 | | | | | | $ | (185,386) | | | J | | | $ | — | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | (5,935) | | | B | | | | | | | | | 94,638 | | | L | | | | | | | | | | | | | | | | | | | | | | | | | (5,935) | | | B | | | | | | | | | | | 94,638 | | | L | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | (4,000) | | | C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (4,000) | | | C | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | (90,223) | | | E | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (90,223) | | | E | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Restricted cash | | | | | | | | | 25,624 | | | | | | | | | | | | | | | | | 25,624 | | | | | | | | | | | | 25,624 | | | | | | | | | | | 25,624 | | | | | | | | | | | | | | | | | 25,624 | | | | | | | | | | | | | | 25,624 | | | |||||||||||||||||||
Accounts receivable | | | | 12,784 | | | | | 12,277 | | | | | | | | | | | | | | | | | 25,061 | | | | | | | | | | | | 25,061 | | | | | | 12,784 | | | | | 12,277 | | | | | | | | | | | | | | | | | 25,061 | | | | | | | | | | | | | | 25,061 | | | |||||||||||||||||||
Inventories | | | | 96,111 | | | | | 38,474 | | | | | | | | | | 7,398 | | | F | | | | 144,372 | | | | | (2,389) | | | K | | | | 141,983 | | | | | | 96,111 | | | | | 38,474 | | | | | | | | | | 7,398 | | | F | | | | 144,372 | | | | | | | (2,389) | | | K | | | | 141,983 | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 2,389 | | | H | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,389 | | | H | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Prepaid expenses and other current assets | | | | 9,876 | | | | | 6,927 | | | | | 105 | | | | | | | | | | | | 16,908 | | | | | | | | | | | | 16,908 | | | | | | 9,876 | | | | | 6,927 | | | | | 105 | | | | | | | | | | | | 16,908 | | | | | | | | | | | | | | 16,908 | | | |||||||||||||||||||
Total current assets | | | | 122,855 | | | | | 84,602 | | | | | 188 | | | | | 95,068 | | | | | | | 302,713 | | | | | (93,137) | | | | | | | 209,576 | | | | | | 122,855 | | | | | 84,602 | | | | | 188 | | | | | 95,068 | | | | | | | 302,713 | | | | | | | (93,137) | | | | | | | 209,576 | | | |||||||||||||||||||
Non-current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Cash and investments held in Trust Account | | | | — | | | | | — | | | | | 185,439 | | | | | (185,439) | | | A | | | | — | | | | | | | | | | | | — | | | | | | — | | | | | — | | | | | 185,439 | | | | | (185,439) | | | A | | | | — | | | | | | | | | | | | | | — | | | |||||||||||||||||||
Investments | | | | — | | | | | 24 | | | | | — | | | | | | | | | | | | 24 | | | | | | | | | | | | 24 | | | | | | — | | | | | 24 | | | | | — | | | | | | | | | | | | 24 | | | | | | | | | | | | | | 24 | | | |||||||||||||||||||
Intangible assets, net | | | | 4,839 | | | | | 192 | | | | | | | | | | 41,161 | | | F | | | | 166,192 | | | | | (120,000) | | | K | | | | 46,192 | | | | | | 4,839 | | | | | 192 | | | | | | | | | | 41,161 | | | F | | | | 166,192 | | | | | | | (120,000) | | | K | | | | 46,192 | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 120,000 | | | H | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 120,000 | | | H | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Equity accounted investments | | | | | | | | | 2,119 | | | | | | | | | | | | | | | | | 2,119 | | | | | | | | | | | | 2,119 | | | | | | | | | | | 2,119 | | | | | | | | | | | | | | | | | 2,119 | | | | | | | | | | | | | | 2,119 | | | |||||||||||||||||||
Deferred income tax asset | | | | 660 | | | | | 376 | | | | | | | | | | | | | | | | | 1,036 | | | | | | | | | | | | 1,036 | | | | | | 660 | | | | | 376 | | | | | | | | | | | | | | | | | 1,036 | | | | | | | | | | | | | | 1,036 | | | |||||||||||||||||||
Property and equipment, net | | | | 28,070 | | | | | 27,163 | | | | | | | | | | (1,736) | | | F | | | | 53,497 | | | | | | | | | | | | 53,497 | | | | | | 28,070 | | | | | 27,163 | | | | | | | | | | (1,736) | | | F | | | | 53,497 | | | | | | | | | | | | | | 53,497 | | | |||||||||||||||||||
Right of use asset | | | | 22,550 | | | | | 669 | | | | | | | | | | | | | | | | | 23,219 | | | | | | | | | | | | 23,219 | | | | | | 22,550 | | | | | 669 | | | | | | | | | | | | | | | | | 23,219 | | | | | | | | | | | | | | 23,219 | | | |||||||||||||||||||
Goodwill | | | | | | | | | | | | | | | | | | | 24,120 | | | F | | | | 133,534 | | | | | (109,414) | | | K | | | | 24,120 | | | | | | | | | | | | | | | | | | | | | 24,120 | | | F | | | | 133,534 | | | | | | | (109,414) | | | K | | | | 24,120 | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 109,414 | | | H | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 109,414 | | | H | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Other non-current assets | | | | 4,446 | | | | | 3,620 | | | | | | | | | | | | | | | | | 8,066 | | | | | | | | | | | | 8,066 | | | | | | 4,446 | | | | | 3,620 | | | | | | | | | | | | | | | | | 8,066 | | | | | | | | | | | | | | 8,066 | | | |||||||||||||||||||
Total non-current assets | | | | 60,565 | | | | | 34,163 | | | | | 185,439 | | | | | 107,520 | | | | | | | 387,687 | | | | | (229,414) | | | | | | | 158,273 | | | | | | 60,565 | | | | | 34,163 | | | | | 185,439 | | | | | 107,520 | | | | | | | 387,687 | | | | | | | (229,414) | | | | | | | 158,273 | | | |||||||||||||||||||
TOTAL ASSETS | | | $ | 183,420 | | | | $ | 118,765 | | | | $ | 185,627 | | | | $ | 202,588 | | | | | | $ | 690,400 | | | | $ | (322,551) | | | | | | $ | 367,849 | | | | | $ | 183,420 | | | | $ | 118,765 | | | | $ | 185,627 | | | | $ | 202,588 | | | | | | $ | 690,400 | | | | | | $ | (322,551) | | | | | | $ | 367,849 | | | |||||||||||||||||||
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Accounts payable | | | $ | 43,620 | | | | $ | 34,867 | | | | $ | | | | $ | | | | | | $ | 78,487 | | | | $ | | | | | | $ | 78,487 | | | | | $ | 43,620 | | | | $ | 34,867 | | | | $ | | | | $ | | | | | | $ | 78,487 | | | | | | $ | | | | | | $ | 78,487 | | | |||||||||||||||||||||||||
Accounts payable – related party | | | | 232 | | | | | | | | | | | | | | | | | | | | | | 232 | | | | | | | | | | | | 232 | | | | | | 232 | | | | | | | | | | | | | | | | | | | | | | 232 | | | | | | | | | | | | | | 232 | | | |||||||||||||||||||
Short-term debt | | | | 58,538 | | | | | 53,056 | | | | | 2,893 | | | | | (39,144) | | | I | | | | 75,343 | | | | | 103,660 | | | L | | | | 179,003 | | | | | | 58,538 | | | | | 53,056 | | | | | 2,893 | | | | | (39,144) | | | I | | | | 75,343 | | | | | | | 103,660 | | | L | | | | 179,003 | | | |||||||||||||||||||
Short-term debt – revolver | | | | | | | | | | | | | | | | | | | 39,144 | | | I | | | | 39,144 | | | | | | | | | | | | 39,144 | | | | | | | | | | | | | | | | | | | | | 39,144 | | | I | | | | 39,144 | | | | | | | | | | | | | | 39,144 | | | |||||||||||||||||||
Operating lease liability | | | | 2,516 | | | | | | | | | | | | | | | | | | | | | | 2,516 | | | | | | | | | | | | 2,516 | | | | | | 2,516 | | | | | | | | | | | | | | | | | | | | | | 2,516 | | | | | | | | | | | | | | 2,516 | | | |||||||||||||||||||
Other current liabilities | | | | 23,781 | | | | | 39,669 | | | | | 2,763 | | | | | 1,984 | | | C | | | | 68,197 | | | | | 18,659 | | | L | | | | 86,856 | | | | | | 23,781 | | | | | 39,669 | | | | | 2,763 | | | | | 1,984 | | | C | | | | 68,197 | | | | | | | 18,659 | | | L | | | | 86,856 | | | |||||||||||||||||||
Total current liabilities | | | | 128,687 | | | | | 127,592 | | | | | 5,656 | | | | | 1,984 | | | | | | | 263,919 | | | | | 122,319 | | | | | | | 386,238 | | | | | | 128,687 | | | | | 127,592 | | | | | 5,656 | | | | | 1,984 | | | | | | | 263,919 | | | | | | | 122,319 | | | | | | | 386,238 | | | |||||||||||||||||||
Non-current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Long-term debt | | | | 11,239 | | | | | 140,404 | | | | | | | | | | (41,280) | | | I | | | | 110,363 | | | | | | | | | | | | 110,363 | | | | | | 11,239 | | | | | 140,404 | | | | | | | | | | (41,280) | | | I | | | | 110,363 | | | | | | | | | | | | | | 110,363 | | | |||||||||||||||||||
Lease liability | | | | 19,549 | | | | | | | | | | | | | | | | | | | | | | 19,549 | | | | | | | | | | | | 19,549 | | | | | | 19,549 | | | | | | | | | | | | | | | | | | | | | | 19,549 | | | | | | | | | | | | | | 19,549 | | | |||||||||||||||||||
Long-term debt – revolver | | | | | | | | | | | | | | | | | | | 41,280 | | | I | | | | 41,280 | | | | | | | | | | | | 41,280 | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt – revolver | | | | | | | | | | | | | | | | | | | 41,280 | | | I | | | | 41,280 | | | | | | | | | | | | | | 41,280 | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | | | | 3,508 | | | | | 543 | | | | | | | | | | | | | | | | | 4,051 | | | | | | | | | | | | 4,051 | | | | | | 3,508 | | | | | 543 | | | | | | | | | | | | | | | | | 4,051 | | | | | | | | | | | | | | 4,051 | | | |||||||||||||||||||
Deferred tax liabilities, net | | | | 1,156 | | | | | 329 | | | | | | | | | | | | | | | | | 1,485 | | | | | | | | | | | | 1,485 | | | | | | 1,156 | | | | | 329 | | | | | | | | | | | | | | | | | 1,485 | | | | | | | | | | | | | | 1,485 | | | |||||||||||||||||||
Warrant liability | | | | | | | | | | | | | | 1,864 | | | | | | | | | | | | 1,864 | | | | | | | | | | | | 1,864 | | | | | | | | | | | | | | | | 1,864 | | | | | | | | | | | | 1,864 | | | | | | | | | | | | | | 1,864 | | | |||||||||||||||||||
Deferred underwriting fees payable | | | | | | | | | | | | | | 5,935 | | | | | (5,935) | | | B | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | | | | | 5,935 | | | | | (5,935) | | | B | | | | — | | | | | | | | | | | | | | — | | | |||||||||||||||||||
Total non-current liabilities | | | | 35,452 | | | | | 141,276 | | | | | 7,799 | | | | | (5,935) | | | | | | | 178,592 | | | | | — | | | | | | | 178,592 | | | | | | 35,452 | | | | | 141,276 | | | | | 7,799 | | | | | (5,935) | | | | | | | 178,592 | | | | | | | — | | | | | | | 178,592 | | | |||||||||||||||||||
Total liabilities | | | | 164,139 | | | | | 268,868 | | | | | 13,455 | | | | | (3,951) | | | | | | | 442,511 | | | | | 122,319 | | | | | | | 564,830 | | | | | | 164,139 | | | | | 268,868 | | | | | 13,455 | | | | | (3,951) | | | | | | | 442,511 | | | | | | | 122,319 | | | | | | | 564,830 | | | |||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Temporary equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Common stock subject to possible redemption | | | | | | | | | | | | | | 185,386 | | | | | (185,386) | | | D | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | | | | | 185,386 | | | | | (185,386) | | | D | | | | — | | | | | | | | | | | | | | — | | | |||||||||||||||||||
Shareholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Common stock | | | | | | | | | 1,873 | | | | | 1 | | | | | (1,873) | | | G | | | | 4 | | | | | (1) | | | J | | | | 2 | | | | | | | | | | | 1,873 | | | | | 1 | | | | | (1,873) | | | G | | | | 4 | | | | | | | (1) | | | J | | | | 2 | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 1 | | | G | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1 | | | G | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 2 | | | D | | | | | | | | | (1) | | | K | | | | | | | | | | | | | | | | | | | | | | | | | 2 | | | D | | | | | | | | | | | (1) | | | K | | | | | | | |||||||||||||||||||
Additional paid-in capital | | | | 107,585 | | | | | | | | | | | | | | | 185,385 | | | D | | | | 267,084 | | | | | (185,385) | | | J | | | | 1,873 | | | | | | 107,585 | | | | | | | | | | | | | | | 185,385 | | | D | | | | 267,084 | | | | | | | (185,385) | | | J | | | | 1,873 | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 81,699 | | | G | | | | | | | | | (79,826) | | | K | | | | | | | | | | | | | | | | | | | | | | | | | 81,699 | | | G | | | | | | | | | | | (79,826) | | | K | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | (107,585) | | | E | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (107,585) | | | E | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Accumulated other comprehensive income (loss) | | | | 18,331 | | | | | 4,954 | | | | | | | | | | (18,331) | | | E | | | | — | | | | | 4,954 | | | K | | | | 4,954 | | | | | | 18,331 | | | | | 4,954 | | | | | | | | | | (18,331) | | | E | | | | — | | | | | | | 4,954 | | | K | | | | 4,954 | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | (4,954) | | | G | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (4,954) | | | G | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Accumulated deficit | | | | (106,635) | | | | | (150,513) | | | | | (13,215) | | | | | 150,513 | | | G | | | | (19,199) | | | | | (150,513) | | | K | | | | (197,393) | | | | | | (106,635) | | | | | (150,513) | | | | | (13,215) | | | | | 150,513 | | | G | | | | (19,199) | | | | | | | (150,513) | | | K | | | | (197,393) | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 106,635 | | | E | | | | | | | | | (27,681) | | | L | | | | | | | | | | | | | | | | | | | | | | | | | 106,635 | | | E | | | | | | | | | | | (27,681) | | | L | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | (5,984) | | | C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (5,984) | | | C | | | | | | | | | | | | | | | | | |||||||||||||||||||||||
Non-controlling interest | | | | | | | | | (6,417) | | | | | | | | | | 6,417 | | | G | | | | — | | | | | (6,417) | | | K | | | | (6,417) | | | | | | | | | | | (6,417) | | | | | | | | | | 6,417 | | | G | | | | — | | | | | | | (6,417) | | | K | | | | (6,417) | | | |||||||||||||||||||
Total shareholders’ equity (deficit) | | | | 19,281 | | | | | (150,103) | | | | | (13,214) | | | | | 391,925 | | | | | | | 247,889 | | | | | (444,870) | | | | | | | (196,981) | | | | | | 19,281 | | | | | (150,103) | | | | | (13,214) | | | | | 391,925 | | | | | | | 247,889 | | | M | | | | (444,870) | | | | | | | (196,981) | | | |||||||||||||||||||
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ DEFICIT | | | $ | 183,420 | | | | $ | 118,765 | | | | $ | 185,627 | | | | $ | 202,588 | | | | | | $ | 690,400 | | | | $ | (322,551) | | | | | | $ | 367,849 | | | | | $ | 183,420 | | | | $ | 118,765 | | | | $ | 185,627 | | | | $ | 202,588 | | | | | | $ | 690,400 | | | | | | $ | (322,551) | | | | | | $ | 367,849 | | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
Revenue | | | $ | 114,633 | | | | $ | 55,818 | | | | $ | | | | $ | | | | | | $ | 170,451 | | | | $ | | | | | | $ | 170,451 | | | | | $ | 114,633 | | | | $ | 55,818 | | | | $ | | | | $ | | | | | | $ | 170,451 | | | | $ | | | | | | $ | 170,451 | | | ||||||||||||||||||||||||
Cost of revenue | | | | 81,808 | | | | | 41,785 | | | | | | | | | | | | | | | | | 123,593 | | | | | | | | | | | | 123,593 | | | | | | 81,808 | | | | | 41,785 | | | | | | | | | | | | | | | | | 123,593 | | | | | | | | | | | | 123,593 | | | ||||||||||||||||||
Gross profit | | | | 32,825 | | | | | 14,033 | | | | | | | | | | — | | | | | | | 46,858 | | | | | — | | | | | | | 46,858 | | | | | | 32,825 | | | | | 14,033 | | | | | | | | | | — | | | | | | | 46,858 | | | | | — | | | | | | | 46,858 | | | ||||||||||||||||||
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
Selling, general and administrative | | | | 37,476 | | | | | 9,872 | | | | | 2,145 | | | | | 2,375 | | | BB | | | | 56,782 | | | | | (4,914) | | | DD | | | | 51,868 | | | | | | 37,476 | | | | | 9,872 | | | | | 2,145 | | | | | 2,375 | | | BB | | | | 56,782 | | | | | (4,914) | | | DD | | | | 51,868 | | | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 4,914 | | | CC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,914 | | | CC | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
Restructuring | | | | (90) | | | | | | | | | | | | | | | | | | | | | | (90) | | | | | | | | | | | | (90) | | | | | | (90) | | | | | | | | | | | | | | | | | | | | | | (90) | | | | | | | | | | | | (90) | | | ||||||||||||||||||
Management fees | | | | 250 | | | | | | | | | | | | | | | | | | | | | | 250 | | | | | | | | | | | | 250 | | | | | | 250 | | | | | | | | | | | | | | | | | | | | | | 250 | | | | | | | | | | | | 250 | | | ||||||||||||||||||
Total operating costs and expenses | | | | 37,636 | | | | | 9,872 | | | | | 2,145 | | | | | 7,289 | | | | | | | 56,942 | | | | | (4,914) | | | | | | | 52,028 | | | | | | 37,636 | | | | | 9,872 | | | | | 2,145 | | | | | 7,289 | | | | | | | 56,942 | | | | | (4,914) | | | | | | | 52,028 | | | ||||||||||||||||||
Gain (loss) from operations | | | | (4,811) | | | | | 4,161 | | | | | (2,145) | | | | | (7,289) | | | | | | | (10,084) | | | | | 4,914 | | | | | | | (5,170) | | | | | | (4,811) | | | | | 4,161 | | | | | (2,145) | | | | | (7,289) | | | | | | | (10,084) | | | | | 4,914 | | | | | | | (5,170) | | | ||||||||||||||||||
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||
Interest income | | | | | | | | | 72 | | | | | | | | | | | | | | | | | 72 | | | | | | | | | | | | 72 | | | | | | | | | | | 72 | | | | | | | | | | | | | | | | | 72 | | | | | | | | | | | | 72 | | | ||||||||||||||||||
Realized and unrealized losses | | | | | | | | | | | | | | 88 | | | | | (88) | | | AA | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | | | | | 88 | | | | | (88) | | | AA | | | | — | | | | | | | | | | | | — | | | ||||||||||||||||||
Interest expense | | | | (3,067) | | | | | (5,811) | | | | | (27) | | | | | | | | | | | | (8,905) | | | | | (6,220) | | | EE | | | | (15,125) | | | | | | (3,067) | | | | | (5,811) | | | | | (27) | | | | | | | | | | | | (8,905) | | | | | (6,220) | | | EE | | | | (15,125) | | | ||||||||||||||||||
Other income, net | | | | 1 | | | | | (291) | | | | | | | | | | | | | | | | | (290) | | | | | | | | | | | | (290) | | | | | | 1 | | | | | (291) | | | | | | | | | | | | | | | | | (290) | | | | | | | | | | | | (290) | | | ||||||||||||||||||
Foreign exchange | | | | (353) | | | | | | | | | | | | | | | | | | | | | | (353) | | | | | | | | | | | | (353) | | | | | | (353) | | | | | | | | | | | | | | | | | | | | | | (353) | | | | | | | | | | | | (353) | | | ||||||||||||||||||
Change in fair value of warrant liabilities | | | | | | | | | | | | | | 3,910 | | | | | | | | | | | | 3,910 | | | | | | | | | | | | 3,910 | | | | | | | | | | | | | | | | 3,910 | | | | | | | | | | | | 3,910 | | | | | | | | | | | | 3,910 | | | ||||||||||||||||||
Total other income (expense) | | | | (3,419) | | | | | (6,030) | | | | | 3,971 | | | | | (88) | | | | | | | (5,566) | | | | | (6,220) | | | | | | | (11,786) | | | | | | (3,419) | | | | | (6,030) | | | | | 3,971 | | | | | (88) | | | | | | | (5,566) | | | | | (6,220) | | | | | | | (11,786) | | | ||||||||||||||||||
Net income (loss) before income tax provision | | | | (8,230) | | | | | (1,869) | | | | | 1,826 | | | | | (7,377) | | | | | | | (15,650) | | | | | (1,306) | | | | | | | (16,956) | | | | | | (8,230) | | | | | (1,869) | | | | | 1,826 | | | | | (7,377) | | | | | | | (15,650) | | | | | (1,306) | | | | | | | (16,956) | | | ||||||||||||||||||
Income tax provision | | | | (888) | | | | | (130) | | | | | | | | | | — | | | | | | | (1,018) | | | | | | | | | | | | (1,018) | | | | | | (888) | | | | | (130) | | | | | | | | | | — | | | | | | | (1,018) | | | | | | | | | | | | (1,018) | | | ||||||||||||||||||
Net income (loss) before equity method investment | | | | (9,118) | | | | | (1,999) | | | | | 1,826 | | | | | (7,377) | | | | | | | (16,668) | | | | | (1,306) | | | | | | | (17,974) | | | | | | (9,118) | | | | | (1,999) | | | | | 1,826 | | | | | (7,377) | | | | | | | (16,668) | | | | | (1,306) | | | | | | | (17,974) | | | ||||||||||||||||||
Share of profit on equity method investment | | | | | | | | | 76 | | | | | | | | | | | | | | | | | 76 | | | | | | | | | | | | 76 | | | | | | | | | | | 76 | | | | | | | | | | | | | | | | | 76 | | | | | | | | | | | | 76 | | | ||||||||||||||||||
Net income (loss) after equity method investment | | | | (9,118) | | | | | (1,923) | | | | | 1,826 | | | | | (7,377) | | | | | | | (16,592) | | | | | (1,306) | | | | | | | (17,898) | | | | | | (9,118) | | | | | (1,923) | | | | | 1,826 | | | | | (7,377) | | | | | | | (16,592) | | | | | (1,306) | | | | | | | (17,898) | | | ||||||||||||||||||
Net loss attributable to noncontrolling interest | | | | | | | | | 146 | | | | | | | | | | | | | | | | | 146 | | | | | | | | | | | | 146 | | | | | | | | | | | 146 | | | | | | | | | | | | | | | | | 146 | | | | | | | | | | | | 146 | | | ||||||||||||||||||
Net income (loss) | | | $ | (9,118) | | | | $ | (2,069) | | | | $ | 1,826 | | | | $ | (7,377) | | | | | | $ | (16,738) | | | | $ | (1,306) | | | | | | $ | (18,044) | | | | | $ | (9,118) | | | | $ | (2,069) | | | | $ | 1,826 | | | | $ | (7,377) | | | | | | $ | (16,738) | | | | $ | (1,306) | | | | | | $ | (18,044) | | |
| | | Luminex (Historical) | | | GP Global (Historical) | | | GACQ (Historical) | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | |||||||||||||||
Weighted average redeemable common shares outstanding | | | | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | |
Weighted average non-redeemable common shares outstanding | | | | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | | | 50,000 | | | | | | 6,880,000 | | | | | | | | | | | | 33,628,763 | | | | | | 15,365,763 | | |
Net income (loss) per share, basic and diluted | | | | $ | (182.38) | | | | | $ | (0.30) | | | | | $ | | | | | $ | (0.50) | | | | | $ | (1.17) | | |
| | | Luminex (Historical) | | | GP Global (Historical) | | | GACQ (Historical) | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | |||||||||||||||
Weighted average redeemable common shares outstanding | | | | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | |
Weighted average non-redeemable common shares outstanding | | | | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | | | 50,000 | | | | | | 6,880,000 | | | | | | | | | | | | 31,452,363 | | | | | | 13,189,363 | | |
Net income (loss) per share, basic and diluted | | | | $ | (182.36) | | | | | $ | (0.30) | | | | | $ | | | | | | $ | (0.53) | | | | | $ | (1.37) | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Revenue | | | $ | 315,571 | | | | $ | 105,568 | | | | $ | | | | $ | | | | | | $ | 421,139 | | | | $ | | | | | | $ | 421,139 | | | | | $ | 315,571 | | | | $ | 105,568 | | | | $ | | | | $ | | | | | | $ | 421,139 | | | | $ | | | | | | $ | 421,139 | | | | |||||||||||||||||||||||||||||||||||||||||
Cost of revenue | | | | 215,222 | | | | | 87,259 | | | | | | | | | | 7,397 | | | EE | | | | 312,267 | | | | | (2,389) | | | HH | | | | 309,878 | | | | | | 215,222 | | | | | 87,259 | | | | | | | | | | 7,397 | | | EE | | | | 312,267 | | | | | (2,389) | | | HH | | | | 309,878 | | | | |||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 2,389 | | | FF | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,389 | | | FF | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Gross profit | | | | 100,349 | | | | | 18,309 | | | | | | | | | | (9,786) | | | | | | | 108,872 | | | | | 2,389 | | | | | | | 111,261 | | | | | | 100,349 | | | | | 18,309 | | | | | | | | | | (9,786) | | | | | | | 108,872 | | | | | 2,389 | | | | | | | 111,261 | | | | |||||||||||||||||||||||||||||||||||
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | | | | 91,896 | | | | | 29,213 | | | | | 2,441 | | | | | 24,500 | | | AA | | | | 162,629 | | | | | (9,829) | | | GG | | | | 152,800 | | | | | | 91,896 | | | | | 29,213 | | | | | 2,441 | | | | | 24,500 | | | AA | | | | 162,629 | | | | | (9,829) | | | GG | | | | 152,800 | | | | |||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 4,750 | | | CC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,750 | | | CC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | 9,829 | | | DD | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 9,829 | | | DD | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||
Restructuring | | | | 165 | | | | | | | | | | | | | | | | | | | | | | 165 | | | | | | | | | | | | 165 | | | | | | 165 | | | | | | | | | | | | | | | | | | | | | | 165 | | | | | | | | | | | | 165 | | | | |||||||||||||||||||||||||||||||||||
Management fees | | | | 509 | | | | | | | | | | | | | | | | | | | | | | 509 | | | | | | | | | | | | 509 | | | | | | 509 | | | | | | | | | | | | | | | | | | | | | | 509 | | | | | | | | | | | | 509 | | | | |||||||||||||||||||||||||||||||||||
Total operating costs and expenses | | | | 92,570 | | | | | 29,213 | | | | | 2,441 | | | | | 39,079 | | | | | | | 163,303 | | | | | (9,829) | | | | | | | 153,474 | | | | | | 92,570 | | | | | 29,213 | | | | | 2,441 | | | | | 39,079 | | | | | | | 163,303 | | | | | (9,829) | | | | | | | 153,474 | | | | | | | | | | |||||||||||||||||||||||||||||
Loss from operations | | | | 7,779 | | | | | (10,904) | | | | | (2,441) | | | | | (48,865) | | | | | | | (54,431) | | | | | 12,218 | | | | | | | (42,213) | | | | | | 7,779 | | | | | (10,904) | | | | | (2,441) | | | | | (48,865) | | | | | | | (54,431) | | | | | 12,218 | | | | | | | (42,213) | | | | |||||||||||||||||||||||||||||||||||
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Interest income | | | | | | | | | 249 | | | | | | | | | | | | | | | | | 249 | | | | | | | | | | | | 249 | | | | | | | | | | | 249 | | | | | | | | | | | | | | | | | 249 | | | | | | | | | | | | 249 | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Unrealized gains | | | | | | | | | | | | | | 27 | | | | | (27) | | | BB | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | 27 | | | | | (27) | | | BB | | | | — | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||
Interest expense | | | | (5,573) | | | | | (11,310) | | | | | | | | | | | | | | | | | (16,883) | | | | | (21,462) | | | II | | | | (38,345) | | | | | | (5,573) | | | | | (11,310) | | | | | | | | | | | | | | | | | (16,883) | | | | | (21,462) | | | II | | | | (38,345) | | | | | | | | |||||||||||||||||||||||||||||||
Other income, net | | | | 123 | | | | | 8,788 | | | | | | | | | | | | | | | | | 8,911 | | | | | | | | | | | | 8,911 | | | | | | 123 | | | | | 8,788 | | | | | | | | | | | | | | | | | 8,911 | | | | | | | | | | | | 8,911 | | | | | | | | | | | | | | |||||||||||||||||||||||||
Foreign exchange | | | | (1,089) | | | | | | | | | | | | | | | | | | | | | | (1,089) | | | | | | | | | | | | (1,089) | | | | | | (1,089) | | | | | | | | | | | | | | | | | | | | | | (1,089) | | | | | | | | | | | | (1,089) | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Change in fair value of warrant liabilities | | | | | | | | | | | | | | 4,008 | | | | | | | | | | | | 4,008 | | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | | 4,008 | | | | | | | | | | | | 4,008 | | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Transaction costs allocated to warrant liabilities | | | | | | | | | | | | | | (451) | | | | | | | | | | | | (451) | | | | | | | | | | | | (451) | | | | | | | | | | | | | | | | (451) | | | | | | | | | | | | (451) | | | | | | | | | | | | (451) | | | | | | | | | | | | | | |||||||||||||||||||||||||
Total other income (expense) | | | | (6,539) | | | | | (2,273) | | | | | 3,584 | | | | | (27) | | | | | | | (5,255) | | | | | (21,462) | | | | | | | (26,717) | | | | | | (6,539) | | | | | (2,273) | | | | | 3,584 | | | | | (27) | | | | | | | (5,255) | | | | | (21,462) | | | | | | | (26,717) | | | | |||||||||||||||||||||||||||||||||||
Net income (loss) before income tax provision | | | | 1,240 | | | | | (13,177) | | | | | 1,143 | | | | | (48,892) | | | | | | | (59,686) | | | | | (9,244) | | | | | | | (68,930) | | | | | | 1,240 | | | | | (13,177) | | | | | 1,143 | | | | | (48,892) | | | | | | | (59,686) | | | | | (9,244) | | | | | | | (68,930) | | | | |||||||||||||||||||||||||||||||||||
Income tax provision | | | | (191) | | | | | (207) | | | | | | | | | | — | | | | | | | (398) | | | | | | | | | | | | (398) | | | | | | (191) | | | | | (207) | | | | | | | | | | — | | | | | | | (398) | | | | | | | | | | | | (398) | | | | | | | | | | |||||||||||||||||||||||||||||
Net income (loss) before equity method investment | | | | 1,049 | | | | | (13,384) | | | | | 1,143 | | | | | (48,892) | | | | | | | (60,084) | | | | | (9,244) | | | | | | | (69,328) | | | | | | 1,049 | | | | | (13,384) | | | | | 1,143 | | | | | (48,892) | | | | | | | (60,084) | | | | | (9,244) | | | | | | | (69,328) | | | | |||||||||||||||||||||||||||||||||||
Share of profit on equity method investment | | | | | | | | | 1,965 | | | | | | | | | | | | | | | | | 1,965 | | | | | | | | | | | | 1,965 | | | | | | | | | | | 1,965 | | | | | | | | | | | | | | | | | 1,965 | | | | | | | | | | | | 1,965 | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Net income (loss) after equity method investment | | | | 1,049 | | | | | (11,419) | | | | | 1,143 | | | | | (48,892) | | | | | | | (58,119) | | | | | (9,244) | | | | | | | (67,363) | | | | | | 1,049 | | | | | (11,419) | | | | | 1,143 | | | | | (48,892) | | | | | | | (58,119) | | | | | (9,244) | | | | | | | (67,363) | | | | |||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interest | | | | | | | | | (833) | | | | | | | | | | | | | | | | | (833) | | | | | | | | | | | | (833) | | | | | | | | | | | (833) | | | | | | | | | | | | | | | | | (833) | | | | | | | | | | | | (833) | | | | | | | | | | |||||||||||||||||||||||||||||
Net income (loss) | | | $ | 1,049 | | | | $ | (10,586) | | | | $ | 1,143 | | | | $ | (48,892) | | | | | | $ | (57,286) | | | | | (9,244) | | | | | | | (66,530) | | | | | $ | 1,049 | | | | $ | (10,586) | | | | $ | 1,143 | | | | $ | (48,892) | | | | | | $ | (57,286) | | | | $ | (9,244) | | | | | | $ | (66,530) | | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||
Weighted average Common shares outstanding | | | | 50,000 | | | | | 6,880,000 | | | | | 14,904,015 | | | | | 33,628,763 | | | | | 15,365,763 | | | | | | 50,000 | | | | | 6,880,000 | | | | | 14,904,015 | | | | | 31,452,363 | | | | | 13,189,363 | | | ||||||||||
Net income (loss) per share, basic and diluted | | | $ | 20.98 | | | | $ | (1.54) | | | | $ | 0.08 | | | | $ | (1.70) | | | | $ | (4.33) | | | | | $ | 20.98 | | | | $ | (1.54) | | | | $ | 0.08 | | | | $ | (1.82) | | | | $ | (5.04) | | |
| | Luminex (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | | | | Pro Forma Combined Assuming Maximum Redemption | | | Luminex (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | Pro Forma Adjustments Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | | | Pro Forma Combined Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Cash and cash equivalents | | | $ | 4,084 | | | | $ | 83 | | | | $ | 185,439 | | | | | A | | | | $ | 89,448 | | | | $ | (185,386) | | | | | H | | | | $ | — | | | | | $ | 4,084 | | | | $ | 83 | | | | $ | 185,439 | | | A | | | $ | 89,448 | | | | $ | (185,386) | | | H | | | $ | — | | | | $ | 94,128 | | | J | | | $ | — | | | | ||||||||||||||||||||||||
| | | | | | | | | | | | | | (5,935) | | | | | B | | | | | | | | | | 95,938 | | | | | I | | | | | | | | | | | | | | | | | | | | | (5,935) | | | B | | | | | | | | | 95,938 | | | I | | | | | | | | | (94,128) | | | J | | | | | | | | ||||||||||||||||||||||||
| | | | | | | | | | | | | | (4,000) | | | | | C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (4,000) | | | C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
| | | | | | | | | | | | | | (90,223) | | | | | E | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (90,223) | | | E | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Restricted cash | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||||||||||||||||||||||||
Accounts receivable | | | | 12,784 | | | | | | | | | | | | | | | | | | | | 12,784 | | | | | | | | | | | | | | | 12,784 | | | | | | 12,784 | | | | | | | | | | | | | | | | | 12,784 | | | | | | | | | | | | 12,784 | | | | | | | | | | | | 12,784 | | | | ||||||||||||||||||||||||
Inventories | | | | 96,111 | | | | | | | | | | 7,398 | | | | | F | | | | | 103,509 | | | | | | | | | | | | | | | 103,509 | | | | | | 96,111 | | | | | | | | | | 7,398 | | | F | | | | 103,509 | | | | | | | | | | | | 103,509 | | | | | | | | | | | | 103,509 | | | | ||||||||||||||||||||||||
Prepaid expenses and other current assets | | | | 9,876 | | | | | 105 | | | | | | | | | | | | | | | 9,981 | | | | | | | | | | | | | | | 9,981 | | | | | | 9,876 | | | | | 105 | | | | | | | | | | | | 9,981 | | | | | | | | | | | | 9,981 | | | | | | | | | | | | 9,981 | | | | ||||||||||||||||||||||||
Total current assets | | | | 122,855 | | | | | 188 | | | | | 92,679 | | | | | | | | | | 215,722 | | | | | (89,448) | | | | | | | | | | 126,274 | | | | | | 122,855 | | | | | 188 | | | | | 92,679 | | | | | | | 215,722 | | | | | (89,448) | | | | | | | 126,274 | | | | | — | | | | | | | 126,274 | | | | ||||||||||||||||||||||||
Non-current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Cash and investments held in Trust Account | | | | — | | | | | 185,439 | | | | | (185,439) | | | | | A | | | | | — | | | | | | | | | | | | | | | — | | | | | | — | | | | | 185,439 | | | | | (185,439) | | | A | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||||||||||||||||||||||||
Investments | | | | — | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | — | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||||||||||||||||||||||||
Intangible assets, net | | | | 4,839 | | | | | | | | | | 41,161 | | | | | F | | | | | 46,000 | | | | | | | | | | | | | | | 46,000 | | | | | | 4,839 | | | | | | | | | | 41,161 | | | F | | | | 46,000 | | | | | | | | | | | | 46,000 | | | | | | | | | | | | 46,000 | | | | ||||||||||||||||||||||||
Equity accounted investments | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | ||||||||||||||||||||||||
Deferred income tax asset | | | | 660 | | | | | | | | | | | | | | | | | | | | 660 | | | | | | | | | | | | | | | 660 | | | | | | 660 | | | | | | | | | | | | | | | | | 660 | | | | | | | | | | | | 660 | | | | | | | | | | | | 660 | | | | ||||||||||||||||||||||||
Property and equipment, net | | | | 28,070 | | | | | | | | | | (1,736) | | | | | F | | | | | 26,334 | | | | | | | | | | | | | | | 26,334 | | | | | | 28,070 | | | | | | | | | | (1,736) | | | F | | | | 26,334 | | | | | | | | | | | | 26,334 | | | | | | | | | | | | 26,334 | | | | ||||||||||||||||||||||||
Right of use asset | | | | 22,550 | | | | | | | | | | | | | | | | | | | | 22,550 | | | | | | | | | | | | | | | 22,550 | | | | | | 22,550 | | | | | | | | | | | | | | | | | 22,550 | | | | | | | | | | | | 22,550 | | | | | | | | | | | | 22,550 | | | | ||||||||||||||||||||||||
Goodwill | | | | | | | | | | | | | | 24,120 | | | | | F | | | | | 24,120 | | | | | | | | | | | | | | | 24,120 | | | | | | | | | | | | | | | | 24,120 | | | F | | | | 24,120 | | | | | | | | | | | | 24,120 | | | | | | | | | | | | 24,120 | | | | ||||||||||||||||||||||||
Other non-current assets | | | | 4,446 | | | | | | | | | | | | | | | | | | | | 4,446 | | | | | | | | | | | | | | | 4,446 | | | | | | 4,446 | | | | | | | | | | | | | | | | | 4,446 | | | | | | | | | | | | 4,446 | | | | | | | | | | | | 4,446 | | | | ||||||||||||||||||||||||
Total non-current assets | | | | 60,565 | | | | | 185,439 | | | | | (121,894) | | | | | | | | | | 124,110 | | | | | — | | | | | | | | | | 124,110 | | | | | | 60,565 | | | | | 185,439 | | | | | (121,894) | | | | | | | 124,110 | | | | | — | | | | | | | 124,110 | | | | | — | | | | | | | 124,110 | | | | ||||||||||||||||||||||||
TOTAL ASSETS | | | $ | 183,420 | | | | $ | 185,627 | | | | $ | (29,215) | | | | | | | | | $ | 339,832 | | | | $ | (89,448) | | | | | | | | | $ | 250,384 | | | | | $ | 183,420 | | | | $ | 185,627 | | | | $ | (29,215) | | | | | | $ | 339,832 | | | | $ | (89,448) | | | | | | $ | 250,384 | | | | $ | — | | | | | | $ | 250,384 | | | | ||||||||||||||||||||||||
LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Accounts payable | | | $ | 43,620 | | | | $ | | | | $ | | | | | | | | | $ | 43,620 | | | | $ | | | | | | | | | $ | 43,620 | | | | | $ | 43,620 | | | | $ | | | | $ | | | | | | $ | 43,620 | | | | $ | | | | | | $ | 43,620 | | | | | | | | | | | | 43,620 | | | | | | | |||||||||||||||||||||||||||
Accounts payable – related party | | | | 232 | | | | | | | | | | | | | | | | | | | | 232 | | | | | | | | | | | | | | | 232 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable − related party | | | | 232 | | | | | | | | | | | | | | | | | 232 | | | | | | | | | | | | 232 | | | | | | | | | | | | 232 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt | | | | 58,538 | | | | | 2,893 | | | | | (39,144) | | | | | G | | | | | 22,287 | | | | | 104,960 | | | | | I | | | | | 127,247 | | | | | | 58,538 | | | | | 2,893 | | | | | (39,144) | | | G | | | | 22,287 | | | | | 104,960 | | | I | | | | 127,247 | | | | | (103,423) | | | J | | | | 23,824 | | | | ||||||||||||||||||||||||
Short-term debt – revolver | | | | | | | | | | | | | | 39,144 | | | | | G | | | | | 39,144 | | | | | | | | | | | | | | | 39,144 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term debt − revolver | | | | | | | | | | | | | | 39,144 | | | G | | | | 39,144 | | | | | | | | | | | | 39,144 | | | | | | | | | | | | 39,144 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease liability | | | | 2,516 | | | | | | | | | | | | | | | | | | | | 2,516 | | | | | | | | | | | | | | | 2,516 | | | | | | 2,516 | | | | | | | | | | | | | | | | | 2,516 | | | | | | | | | | | | 2,516 | | | | | | | | | | | | 2,516 | | | | ||||||||||||||||||||||||
Other current liabilities | | | | 23,781 | | | | | 2,763 | | | | | 1,795 | | | | | C | | | | | 28,339 | | | | | 18,893 | | | | | I | | | | | 47,232 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other current liablities | | | | 23,781 | | | | | 2,763 | | | | | 1,795 | | | C | | | | 28,339 | | | | | 18,893 | | | I | | | | 47,232 | | | | | (18,621) | | | J | | | | 28,611 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | | | | 128,687 | | | | | 5,656 | | | | | 1,795 | | | | | | | | | | 136,138 | | | | | 123,853 | | | | | | | | | | 259,991 | | | | | | 128,687 | | | | | 5,656 | | | | | 1,795 | | | | | | | 136,138 | | | | | 123,853 | | | | | | | 259,991 | | | | | (122,044) | | | | | | | 137,947 | | | | ||||||||||||||||||||||||
Non-current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||
Long-term debt | | | | 11,239 | | | | | | | | | | | | | | | | | | | | 11,239 | | | | | | | | | | | | | | | 11,239 | | | | | | 11,239 | | | | | | | | | | | | | | | | | 11,239 | | | | | | | | | | | | 11,239 | | | | | | | | | | | | 11,239 | | | | ||||||||||||||||||||||||
Lease liability | | | | 19,549 | | | | | | | | | | | | | | | | | 19,549 | | | | | | | | | | | | 19,549 | | | | | | | | | | | | 19,549 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | | | | 3,508 | | | | | | | | | | | | | | | | | 3,508 | | | | | | | | | | | | 3,508 | | | | | | | | | | | | 3,508 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax liabilities, net | | | | 1,156 | | | | | | | | | | | | | | | | | 1,156 | | | | | | | | | | | | 1,156 | | | | | | | | | | | | 1,156 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant liability | | | | | | | | | 1,864 | | | | | | | | | | | | 1,864 | | | | | | | | | | | | 1,864 | | | | | | | | | | | | 1,864 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred underwriting fees payable | | | | | | | | | 5,935 | | | | | (5,935) | | | B | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | |
| | Luminex (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | | | | Pro Forma Combined Assuming Maximum Redemption | | | Luminex (Historical) | | GACQ (Historical) | | Pro Forma Adjustments Assuming Minimum Redemption | | | | Pro Forma Combined Assuming Minimum Redemption | | Pro Forma Adjustments Assuming Maximum Redemption | | | | Pro Forma Combined Assuming Maximum Redemption | | Pro Forma Adjustments Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | | | Pro Forma Combined Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease liability | | | | 19,549 | | | | | | | | | | | | | | | | | | | | 19,549 | | | | | | | | | | | | | | | 19,549 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current liabilities | | | | 3,508 | | | | | | | | | | | | | | | | | | | | 3,508 | | | | | | | | | | | | | | | 3,508 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred tax liabilities, net | | | | 1,156 | | | | | | | | | | | | | | | | | | | | 1,156 | | | | | | | | | | | | | | | 1,156 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant liability | | | | | | | | | 1,864 | | | | | | | | | | | | | | | 1,864 | | | | | | | | | | | | | | | 1,864 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred underwriting fees payable | | | | | | | | | 5,935 | | | | | (5,935) | | | | | B | | | | | — | | | | | | | | | | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total non-current liabilities | | | | 35,452 | | | | | 7,799 | | | | | (5,935) | | | | | | | | | | 37,316 | | | | | — | | | | | | | | | | 37,316 | | | | | | 35,452 | | | | | 7,799 | | | | | (5,935) | | | | | | | 37,316 | | | | | — | | | | | | | 37,316 | | | | | — | | | | | | | 37,316 | | | |||||||||||||||||||
Total liabilities | | | | 164,139 | | | | | 13,455 | | | | | (4,140) | | | | | | | | | | 173,454 | | | | | 123,853 | | | | | | | | | | 297,307 | | | | | | 164,139 | | | | | 13,455 | | | | | (4,140) | | | | | | | 173,454 | | | | | 123,853 | | | | | | | 297,307 | | | | | (122,044) | | | | | | | 175,263 | | | |||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Temporary equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Common stock subject to possible redemption | | | | | | | | | 185,386 | | | | | (185,386) | | | | | D | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | 185,386 | | | | | (185,386) | | | D | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | |||||||||||||||||||
Shareholders’ equity (deficit): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Common stock | | | | | | | | | 1 | | | | | 2 | | | | | D | | | | | 3 | | | | | (1) | | | | | H | | | | | 2 | | | | | | | | | | | 1 | | | | | 2 | | | D | | | | 3 | | | | | (1) | | | H | | | | 2 | | | | | | | | | | | | 2 | | | |||||||||||||||||||
Additional paid-in capital | | | | 107,585 | | | | | | | | | | 185,385 | | | | | D | | | | | 185,385 | | | | | (185,385) | | | | | H | | | | | — | | | | | | 107,585 | | | | | | | | | | 185,385 | | | D | | | | 185,385 | | | | | (185,385) | | | H | | | | — | | | | | 94,401 | | | J | | | | 94,401 | | | |||||||||||||||||||
| | | | | | | | | | | | | | (107,585) | | | | | E | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (107,585) | | | E | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
Accumulated other comprehensive income (loss) | | | | 18,331 | | | | | | | | | | (18,331) | | | | | E | | | | | — | | | | | | | | | | | | | | | — | | | | | | 18,331 | | | | | | | | | | (18,331) | | | E | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | — | | | |||||||||||||||||||
Accumulated deficit | | | | (106,635) | | | | | (13,215) | | | | | 106,635 | | | | | E | | | | | (19,010) | | | | | | | | | | | | | | | (46,925) | | | | | | (106,635) | | | | | (13,215) | | | | | 106,635 | | | E | | | | (19,010) | | | | | | | | | | | | (46,925) | | | | | | | | | | | | (19,282) | | | |||||||||||||||||||
| | | | | | | | | | | | | | (5,795) | | | | | C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (5,795) | | | C | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | (27,915) | | | | | I | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (27,915) | | | I | | | | | | | | | 27,643 | | | J | | | | | | | |||||||||||||||||||
Non-controlling interest | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | — | | | | | | | | | | | | | | | |||||||||||||||||||
Total shareholders’ equity (deficit) | | | | 19,281 | | | | | (13,214) | | | | | 160,311 | | | | | | | | | | 166,378 | | | | | (213,301) | | | | | | | | | | (46,923) | | | | | | 19,281 | | | | | (13,214) | | | | | 160,311 | | | | | | | 166,378 | | | | | (213,301) | | | | | | | (46,923) | | | | | 122,044 | | | | | | | 75,121 | | | |||||||||||||||||||
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS’ DEFICIT | | | $ | 183,420 | | | | $ | 185,627 | | | | $ | (29,215) | | | | | | | | | $ | 339,832 | | | | $ | (89,448) | | | | | | | | | $ | 250,384 | | | | | $ | 183,420 | | | | $ | 185,627 | | | | $ | (29,215) | | | | | | $ | 339,832 | | | | $ | (89,448) | | | | | | $ | 250,384 | | | | $ | — | | | | | | $ | 250,384 | | | |
| | | Luminex (Historical) | | | GACQ (Historical) | | | Pro Forma Adjustments Assuming Minimum Redemption | | | | | | | | | Pro Forma Combined Assuming Minimum Redemption | | | Pro Forma Adjustments Assuming Minimum and Maximum Redemption | | | | | | | | | Pro Forma Combined Assuming Minimum and Maximum Redemption | | ||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 114,633 | | | | | $ | | | | | $ | | | | | | | | | | | $ | 114,633 | | | | | | | | | | | | | | | | | $ | 114,633 | | | ||
Cost of revenue | | | | | 81,808 | | | | | | | | | | | | | | | | | | | | | | | | 81,808 | | | | | | | | | | | | | | | | | | 81,808 | | |
Gross profit | | | | | 32,825 | | | | | | | | | | | | | | | | | | | | | | | | 32,825 | | | | | | | | | | | | | | | | | | 32,825 | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 37,476 | | | | | | 2,145 | | | | | | 2,375 | | | | | | BB | | | | | | 41,996 | | | | | | | | | | | | | | | | | | 41,996 | | |
Management fees | | | | | 250 | | | | | | | | | | | | | | | | | | | | | | | | 250 | | | | | | | | | | | | | | | | | | 250 | | |
Restructuring | | | | | (90) | | | | | | | | | | | | | | | | | | | | | | | | (90) | | | | | | | | | | | | | | | | | | (90) | | |
Intangible impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Goodwill impairment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Total operating costs and expenses | | | | | 37,636 | | | | | | 2,145 | | | | | | 2,375 | | | | | | | | | | | | 42,156 | | | | | | — | | | | | | | | | | | | 42,156 | | |
Loss from operations | | | | | (4,811) | | | | | | (2,145) | | | | | | (2,375) | | | | | | | | | | | | (9,331) | | | | | | — | | | | | | | | | | | | (9,331) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Realized and unrealized losses | | | | | | | | | | | 88 | | | | | | (88) | | | | | | AA | | | | | | | | | | | | — | | | | | | | | | | | | | | |
Interest expense | | | | | (3,067) | | | | | | (27) | | | | | | | | | | | | | | | | | | (3,094) | | | | | | (6,298) | | | | | | CC | | | | | | (9,392) | | |
Change in fair value of warrant liabilities | | | | | | | | | | | 3,910 | | | | | | | | | | | | | | | | | | 3,910 | | | | | | | | | | | | | | | | | | 3,910 | | |
Other income, net | | | | | 1 | | | | | | | | | | | | | | | | | | | | | | | | 1 | | | | | | | | | | | | | | | | | | 1 | | |
Foreign exchange | | | | | (354) | | | | | | | | | | | | | | | | | | | | | | | | (354) | | | | | | | | | | | | | | | | | | (354) | | |
Total other income (expense) | | | | | (3,420) | | | | | | 3,971 | | | | | | (88) | | | | | | | | | | | | 463 | | | | | | (6,298) | | | | | | | | | | | | (5,835) | | |
Net income (loss) before income tax provision | | | | | (8,231) | | | | | | 1,826 | | | | | | (2,463) | | | | | | | | | | | | (8,868) | | | | | | (6,298) | | | | | | | | | | | | (15,166) | | |
Income tax provision | | | | | (888) | | | | | | | | | | | | | | | | | | | | | | | | (888) | | | | | | | | | | | | | | | | | | (888) | | |
Net income (loss) before equity method investment | | | | | (9,119) | | | | | | 1,826 | | | | | | (2,463) | | | | | | | | | | | | (9,756) | | | | | | (6,298) | | | | | | | | | | | | (16,054) | | |
Share of profit on equity method investment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Net income (loss) after equity method investment | | | | | (9,119) | | | | | | 1,826 | | | | | | (2,463) | | | | | | | | | | | | (9,756) | | | | | | (6,298) | | | | | | | | | | | | (16,054) | | |
Net loss attributable to noncontrolling interest | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | |
Net income (loss) | | | | $ | (9,119) | | | | | $ | 1,826 | | | | | $ | (2,463) | | | | | | | | | | | $ | (9,756) | | | | | | (6,298) | | | | | | | | | | | $ | (16,054) | | |
| | | Luminex (Historical) | | | GACQ (Historical) | | | Pro Forma Adjustments Assuming Minimum Redemption | | | | | | Pro Forma Combined Assuming Minimum Redemption | | | Pro Forma Adjustments Assuming Minimum and Maximum Redemption | | | | | | Pro Forma Combined Assuming Minimum and Maximum Redemption | | | Pro Forma Adjustments Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | | | | | Pro Forma Combined Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | ||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 114,633 | | | | | $ | | | | | $ | | | | | | | | $ | 114,633 | | | | | $ | | | | | | | | | $ | 114,633 | | | | | $ | | | | | | | | | $ | 114,633 | | | ||
Cost of revenue | | | | | 81,808 | | | | | | | | | | | | | | | | | | | | | 81,808 | | | | | | | | | | | | | | | 81,808 | | | | | | | | | | | | | | | 81,808 | | |
Gross profit | | | | | 32,825 | | | | | | | | | | | | | | | | | | | | | 32,825 | | | | | | | | | | | | | | | 32,825 | | | | | | — | | | | | | | | | 32,825 | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 37,476 | | | | | | 2,145 | | | | | | 2,375 | | | | BB | | | | | 41,996 | | | | | | | | | | | | | | | 41,996 | | | | | | | | | | | | | | | 41,996 | | |
Management fees | | | | | 250 | | | | | | | | | | | | | | | | | | | | | 250 | | | | | | | | | | | | | | | 250 | | | | | | | | | | | | | | | 250 | | |
Restructuring | | | | | (90) | | | | | | | | | | | | | | | | | | | | | (90) | | | | | | | | | | | | | | | (90) | | | | | | | | | | | | | | | (90) | | |
Total operating costs and expenses | | | | | 37,636 | | | | | | 2,145 | | | | | | 2,375 | | | | | | | | | 42,156 | | | | | | — | | | | | | | | | 42,156 | | | | | | — | | | | | | | | | 42,156 | | |
Loss from operations | | | | | (4,811) | | | | | | (2,145) | | | | | | (2,375) | | | | | | | | | (9,331) | | | | | | — | | | | | | | | | (9,331) | | | | | | — | | | | | | | | | (9,331) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Realized and unrealized losses | | | | | | | | | | | 88 | | | | | | (88) | | | | AA | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (3,067) | | | | | | (27) | | | | | | | | | | | | | | | (3,094) | | | | | | (6,298) | | | | CC | | | | | (9,392) | | | | | | 6,208 | | | | DD | | | | | (3,184) | | |
Change in fair value of warrant liabilities | | | | | | | | | | | 3,910 | | | | | | | | | | | | | | | 3,910 | | | | | | | | | | | | | | | 3,910 | | | | | | | | | | | | | | | 3,910 | | |
Other income, net | | | | | 1 | | | | | | | | | | | | | | | | | | | | | 1 | | | | | | | | | | | | | | | 1 | | | | | | | | | | | | | | | 1 | | |
Foreign exchange | | | | | (353) | | | | | | | | | | | | | | | | | | | | | (353) | | | | | | | | | | | | | | | (353) | | | | | | | | | | | | | | | (353) | | |
Total other income (expense) | | | | | (3,419) | | | | | | 3,971 | | | | | | (88) | | | | | | | | | 464 | | | | | | (6,298) | | | | | | | | | (5,834) | | | | | | 6,208 | | | | | | | | | 374 | | |
Net income (loss) before income tax provision | | | | | (8,230) | | | | | | 1,826 | | | | | | (2,463) | | | | | | | | | (8,867) | | | | | | (6,298) | | | | | | | | | (15,165) | | | | | | 6,208 | | | | | | | | | (8,957) | | |
Income tax provision | | | | | (888) | | | | | | | | | | | | | | | | | | | | | (888) | | | | | | | | | | | | | | | (888) | | | | | | | | | | | | | | | (888) | | |
Net income (loss) before equity method investment | | | | | (9,118) | | | | | | 1,826 | | | | | | (2,463) | | | | | | | | | (9,755) | | | | | | (6,298) | | | | | | | | | (16,053) | | | | | | 6,208 | | | | | | | | | (9,845) | | |
Share of profit on equity method investment | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Net income (loss) after equity method investment | | | | | (9,118) | | | | | | 1,826 | | | | | | (2,463) | | | | | | | | | (9,755) | | | | | | (6,298) | | | | | | | | | (16,053) | | | | | | 6,208 | | | | | | | | | (9,845) | | |
Net loss attributable to noncontrolling interest | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | (9,118) | | | | | $ | 1,826 | | | | | $ | (2,463) | | | | | | | | $ | (9,755) | | | | | $ | (6,298) | | | | | | | | $ | (16,053) | | | | | $ | 6,208 | | | | | | | | $ | (9,845) | | |
| | Luminex (Historical) | | GACQ (Historical) | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | Luminex (Historical) | | GACQ (Historical) | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | ||||||||||||||||||||||||||||||||||||
Weighted average redeemable common shares outstanding | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | | | | | |||||||||
Net income (loss) per share, basic and diluted | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | | | | | |||||||||
Weighted average non-redeemable common shares outstanding | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | | | | | |||||||||
Net income (loss) per share, basic and diluted | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | | | | | | | $ | 0.08 | | | | | | | | | | | | | | | | | | |||||||||
Weighted average Common shares outstanding | | | | 50,000 | | | | | | | | | | 23,282,363 | | | | | 5,019,363 | | | | | | 50,000 | | | | | | | | | | 23,282,363 | | | | | 5,019,363 | | | | | 13,982,363 | | | |||||||||
Net loss per share, basic and diluted | | | $ | (182.38) | | | | | | | | | $ | (0.42) | | | | $ | (3.20) | | | | | $ | (182.36) | | | | | | | | | $ | (0.42) | | | | $ | (3.20) | | | | $ | (0.70) | | |
| | | Luminex (Historical) | | | GACQ (Historical) | | | Pro Forma Adjustments Assuming Minimum Redemption | | | | | | Pro Forma Combined Assuming Minimum Redemption | | | Pro Forma Adjustments Assuming Maximum Redemption | | | | | | Pro Forma Combined Assuming Maximum Redemption | | ||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 315,571 | | | | | $ | | | | | $ | | | | | | | | $ | 315,571 | | | | | | | | | | | | | | $ | 315,571 | | | ||
Cost of revenue | | | | | 215,222 | | | | | | | | | | | | 7,397 | | | | EE | | | | | 222,619 | | | | | | | | | | | | | | | 222,619 | | |
Gross profit | | | | | 100,349 | | | | | | | | | | | | (7,397) | | | | | | | | | 92,952 | | | | | | — | | | | | | | | | 92,952 | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 91,896 | | | | | | 2,441 | | | | | | 23,500 | | | | AA | | | | | 122,587 | | | | | | | | | | | | | | | 122,587 | | |
| | | | | | | | | | | | | | | | | 4,750 | | | | CC | | | | | | | | | | | | | | | | | | | | | | |
Restructuring | | | | | 165 | | | | | | | | | | | | | | | | | | | | | 165 | | | | | | | | | | | | | | | 165 | | |
Management fees | | | | | 509 | | | | | | | | | | | | | | | | | | | | | 509 | | | | | | | | | | | | | | | 509 | | |
Total operating costs and expenses | | | | | 92,570 | | | | | | 2,441 | | | | | | 28,250 | | | | | | | | | 123,261 | | | | | | — | | | | | | | | | 123,261 | | |
Loss from operations | | | | | 7,779 | | | | | | (2,441) | | | | | | (35,647) | | | | | | | | | (30,309) | | | | | | — | | | | | | | | | (30,309) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Unrealized gain | | | | | | | | | | | 27 | | | | | | (27) | | | | BB | | | | | — | | | | | | | | | | | | | | | — | | |
Interest expense | | | | | (5,573) | | | | | | | | | | | | | | | | | | | | | (5,573) | | | | | | (21,618) | | | | DD | | | | | (27,191) | | |
Other income, net | | | | | 123 | | | | | | | | | | | | | | | | | | | | | 123 | | | | | | | | | | | | | | | 123 | | |
Foreign exchange | | | | | (1,089) | | | | | | | | | | | | | | | | | | | | | (1,089) | | | | | | | | | | | | | | | (1,089) | | |
Change in fair value of warrant liabilities | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | 4,008 | | |
Transaction costs allocated to warrant liabilities | | | | | | | | | | | (451) | | | | | | | | | | | | | | | (451) | | | | | | | | | | | | | | | (451) | | |
Total other income (expense) | | | | | (6,539) | | | | | | 3,584 | | | | | | (27) | | | | | | | | | (2,982) | | | | | | (21,618) | | | | | | | | | (24,600) | | |
Net income (loss) before income tax provision | | | | | 1,240 | | | | | | 1,143 | | | | | | (35,674) | | | | | | | | | (33,291) | | | | | | (21,618) | | | | | | | | | (54,909) | | |
Income tax provision | | | | | (191) | | | | | | | | | | | | | | | | | | | | | (191) | | | | | | | | | | | | | | | (191) | | |
Net income (loss) before equity method investment | | | | | 1,049 | | | | | | 1,143 | | | | | | (35,674) | | | | | | | | | (33,482) | | | | | | (21,618) | | | | | | | | | (55,100) | | |
Share of profit on equity method investment | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Net income (loss) after equity method investment | | | | | 1,049 | | | | | | 1,143 | | | | | | (35,674) | | | | | | | | | (33,482) | | | | | | (21,618) | | | | | | | | | (55,100) | | |
Net loss attributable to noncontrolling interest | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Net income (loss) | | | | $ | 1,049 | | | | | $ | 1,143 | | | | | $ | (35,674) | | | | | | | | $ | (33,482) | | | | | | (21,618) | | | | | | | | $ | (55,100) | | |
| | | Luminex (Historical) | | | GACQ (Historical) | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | ||||||||||||
Weighted average Common shares outstanding | | | | | 50,000 | | | | | | 14,904,015 | | | | | | 23,282,363 | | | | | | 5,019,363 | | |
Net income (loss) per share, basic and diluted | | | | $ | 20.98 | | | | | $ | 0.08 | | | | | $ | (1.44) | | | | | $ | (10.98) | | |
| | | Luminex (Historical) | | | GACQ (Historical) | | | Pro Forma Adjustments Assuming Minimum Redemption | | | | | | Pro Forma Combined Assuming Minimum Redemption | | | Pro Forma Adjustments Assuming Maximum Redemption | | | | | | Pro Forma Combined Assuming Maximum Redemption | | | Pro Forma Adjustments Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | | | | | Pro Forma Combined Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | ||||||||||||||||||||||||
Revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue | | | | $ | 315,571 | | | | | $ | | | | | $ | | | | | | | | $ | 315,571 | | | | | | | | | | | | | | $ | 315,571 | | | | | | | | | | | | | | $ | 315,571 | | | ||
Cost of revenue | | | | | 215,222 | | | | | | | | | | | | 7,397 | | | | EE | | | | | 222,619 | | | | | | | | | | | | | | | 222,619 | | | | | | | | | | | | | | | 222,619 | | |
Gross profit | | | | | 100,349 | | | | | | | | | | | | (7,397) | | | | | | | | | 92,952 | | | | | | — | | | | | | | | | 92,952 | | | | | | — | | | ��� | | | | | | 92,952 | | |
Operating costs and expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | | | | 91,896 | | | | | | 2,441 | | | | | | 23,500 | | | | AA | | | | | 122,587 | | | | | | | | | | | | | | | 122,587 | | | | | | | | | | | | | | | 122,587 | | |
| | | | | | | | | | | | | | | | | 4,750 | | | | CC | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Restructuring | | | | | 165 | | | | | | | | | | | | | | | | | | | | | 165 | | | | | | | | | | | | | | | 165 | | | | | | | | | | | | | | | 165 | | |
Management fees | | | | | 509 | | | | | | | | | | | | | | | | | | | | | 509 | | | | | | | | | | | | | | | 509 | | | | | | | | | | | | | | | 509 | | |
Total operating costs and expenses | | | | | 92,570 | | | | | | 2,441 | | | | | | 28,250 | | | | | | | | | 123,261 | | | | | | — | | | | | | | | | 123,261 | | | | | | — | | | | | | | | | 123,261 | | |
Loss from operations | | | | | 7,779 | | | | | | (2,441) | | | | | | (35,647) | | | | | | | | | (30,309) | | | | | | — | | | | | | | | | (30,309) | | | | | | — | | | | | | | | | (30,309) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized gain | | | | | | | | | | | 27 | | | | | | (27) | | | | BB | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (5,573) | | | | | | | | | | | | | | | | | | | | | (5,573) | | | | | | (21,618) | | | | DD | | | | | (27,191) | | | | | | 21,437 | | | | FF | | | | | (5,754) | | |
Other income, net | | | | | 123 | | | | | | | | | | | | | | | | | | | | | 123 | | | | | | | | | | | | | | | 123 | | | | | | | | | | | | | | | 123 | | |
Foreign exchange | | | | | (1,089) | | | | | | | | | | | | | | | | | | | | | (1,089) | | | | | | | | | | | | | | | (1,089) | | | | | | | | | | | | | | | (1,089) | | |
Change in fair value of warrant liabilities | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | 4,008 | | | | | | | | | | | | | | | 4,008 | | |
Transaction costs allocated to warrant liabilities | | | | | | | | | | | (451) | | | | | | | | | | | | | | | (451) | | | | | | | | | | | | | | | (451) | | | | | | | | | | | | | | | (451) | | |
Total other income (expense) | | | | | (6,539) | | | | | | 3,584 | | | | | | (27) | | | | | | | | | (2,982) | | | | | | (21,618) | | | | | | | | | (24,600) | | | | | | 21,437 | | | | | | | | | (3,163) | | |
Net income (loss) before income tax provision | | | | | 1,240 | | | | | | 1,143 | | | | | | (35,674) | | | | | | | | | (33,291) | | | | | | (21,618) | | | | | | | | | (54,909) | | | | | | 21,437 | | | | | | | | | (33,472) | | |
Income tax provision | | | | | (191) | | | | | | | | | | | | | | | | | | | | | (191) | | | | | | | | | | | | | | | (191) | | | | | | | | | | | | | | | (191) | | |
Net income (loss) before equity method investment | | | | | 1,049 | | | | | | 1,143 | | | | | | (35,674) | | | | | | | | | (33,482) | | | | | | (21,618) | | | | | | | | | (55,100) | | | | | | 21,437 | | | | | | | | | (33,663) | | |
Share of profit on equity method investment | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Net income (loss) after equity method investment | | | | | 1,049 | | | | | | 1,143 | | | | | | (35,674) | | | | | | | | | (33,482) | | | | | | (21,618) | | | | | | | | | (55,100) | | | | | | 21,437 | | | | | | | | | (33,663) | | |
Net loss attributable to noncontrolling interest | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,049 | | | | | $ | 1,143 | | | | | $ | (35,674) | | | | | | | | $ | (33,482) | | | | | $ | (21,618) | | | | | | | | $ | (55,100) | | | | | $ | 21,437 | | | | | | | | $ | (33,663) | | |
| | | Luminex (Historical) | | | GACQ (Historical) | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | | Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | |||||||||||||||
Weighted average Common shares outstanding | | | | | 50,000 | | | | | | 14,904,015 | | | | | | 23,282,363 | | | | | | 5,019,363 | | | | | | 13,982,363 | | |
Net income (loss) per share, basic and diluted | | | | $ | 20.98 | | | | | $ | 0.08 | | | | | $ | (1.44) | | | | | $ | (10.98) | | | | | $ | (2.41) | | |
| | | Financial statements as included | | | Adjustments | | | Pro Forma as presented | | | | | Financial statements as included | | | Adjustments | | | Pro Forma as presented | | ||||||||||||||||||||||||||||||||
| | Subtract | | Add | | | | | Subtract | | Add | | |||||||||||||||||||||||||||||||||||||||||
| | Year Ended 2/28/2022 | | Ten Months ended 12/31/2021 | | Four Month ended 6/30/2022 | | Period Ended 6/30/2022 | | | | Year Ended 2/28/2022 | | Ten Months ended 12/31/2021 | | Four Month ended 6/30/2022 | | Period Ended 6/30/2022 | | ||||||||||||||||||||||||||||||||||
Revenue | | | | 308,718 | | | | | 263,750 | | | | | 69,665 | | | | | 114,633 | | | | | | | 308,718 | | | | | 263,750 | | | | | 69,665 | | | | | 114,633 | | | ||||||||||
Cost of revenue | | | | 209,955 | | | | | 177,205 | | | | | 49,058 | | | | | 81,808 | | | | | | | 209,955 | | | | | 177,205 | | | | | 49,058 | | | | | 81,808 | | | ||||||||||
Gross Profit | | | | 98,763 | | | | | 86,545 | | | | | 20,607 | | | | | 32,825 | | | | | | | 98,763 | | | | | 86,545 | | | | | 20,607 | | | | | 32,825 | | | ||||||||||
Selling, general and administrative expenses | | | | 91,866 | | | | | 77,989 | | | | | 23,599 | | | | | 37,476 | | | | | | | 91,866 | | | | | 77,989 | | | | | 23,599 | | | | | 37,476 | | | ||||||||||
Restructuring | | | | 75 | | | | | 165 | | | | | — | | | | | (90) | | | | | | | 75 | | | | | 165 | | | | | — | | | | | (90) | | | ||||||||||
Management fees | | | | 502 | | | | | 419 | | | | | 167 | | | | | 250 | | | | | | | 502 | | | | | 419 | | | | | 167 | | | | | 250 | | | ||||||||||
Total operating costs and expenses | | | | 92,443 | | | | | 78,573 | | | | | 23,766 | | | | | 37,636 | | | | | | | 92,443 | | | | | 78,573 | | | | | 23,766 | | | | | 37,636 | | | ||||||||||
Loss from operations | | | | 6,320 | | | | | 7,972 | | | | | (3,159) | | | | | (4,811) | | | | | | | 6,320 | | | | | 7,972 | | | | | (3,159) | | | | | (4,811) | | | ||||||||||
Interest expense | | | | (5,650) | | | | | (4,677) | | | | | (2,094) | | | | | (3,067) | | | | | | | (5,650) | | | | | (4,677) | | | | | (2,094) | | | | | (3,067) | | | ||||||||||
Other income, net | | | | 112 | | | | | 118 | | | | | 7 | | | | | 1 | | | | | | | 112 | | | | | 118 | | | | | 7 | | | | | 1 | | | ||||||||||
Foreign exchange | | | | (1,057) | | | | | (1,003) | | | | | (299) | | | | | (353) | | | | | | | (1,057) | | | | | (1,003) | | | | | (299) | | | | | (353) | | | ||||||||||
Total other income (expense) | | | | (6,595) | | | | | (5,562) | | | | | (2,386) | | | | | (3,419) | | | | | | | (6,595) | | | | | (5,562) | | | | | (2,386) | | | | | (3,419) | | | ||||||||||
Net income (loss) before income tax provision | | | | (275) | | | | | 2,410 | | | | | (5,545) | | | | | (8,230) | | | | | | | (275) | | | | | 2,410 | | | | | (5,545) | | | | | (8,230) | | | ||||||||||
Income tax provision | | | | 1,687 | | | | | 506 | | | | | (293) | | | | | 888 | | | | | | | 1,687 | | | | | 506 | | | | | (293) | | | | | 888 | | | ||||||||||
Net income (loss) | | | | (1,962) | | | | | 1,904 | | | | | (5,252) | | | | | (9,118) | | | | | | | (1,962) | | | | | 1,904 | | | | | (5,252) | | | | | (9,118) | | |
| | | Financial statements as included | | | Adjustments | | | Pro Forma as presented | | |||||||||||||||
| | | Subtract | | | Add | | ||||||||||||||||||
Luminex | | | Year Ended 2/28/2022 | | | Two Months ended 2/28/2022 | | | Two Months ended 2/28/2021 | | | Year Ended 12/31/2021 | | ||||||||||||
Revenue | | | | $ | 308,718 | | | | | $ | 44,968 | | | | | $ | 51,821 | | | | | $ | 315,571 | | |
Cost of Revenue | | | | | 209,955 | | | | | | 32,928 | | | | | | 38,195 | | | | | | 215,222 | | |
Gross Profit | | | | | 98,763 | | | | | | 12,040 | | | | | | 13,626 | | | | | | 100,349 | | |
SG&A | | | | | 91,866 | | | | | | 13,877 | | | | | | 13,907 | | | | | | 91,896 | | |
Restructuring | | | | | 75 | | | | | | (90) | | | | | | 0 | | | | | | 165 | | |
Management fees | | | | | 502 | | | | | | 83 | | | | | | 90 | | | | | | 509 | | |
Intangible impairment | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Goodwill Impairment | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Total operating costs and expenses | | | | | 92,443 | | | | | | 13,870 | | | | | | 13,997 | | | | | | 92,570 | | |
Loss from Operations | | | | | 6,320 | | | | | | (1,830) | | | | | | (371) | | | | | | 7,779 | | |
Interest Income | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Interest Expense | | | | | (5,650) | | | | | | (974) | | | | | | (897) | | | | | | (5,573) | | |
Other income net | | | | | 112 | | | | | | (7) | | | | | | 4 | | | | | | 123 | | |
Foreign exchange | | | | | (1,057) | | | | | | (55) | | | | | | (87) | | | | | | (1,089) | | |
Total other income (expense) | | | | | (6,595) | | | | | | (1,036) | | | | | | (980) | | | | | | (6,539) | | |
Net Income (Loss) before Income Tax | | | | | (275) | | | | | | (2,866) | | | | | | (1,351) | | | | | | 1,240 | | |
Income tax provision | | | | | 1,687 | | | | | | 1,181 | | | | | | (315) | | | | | | 191 | | |
Net Income (Loss) | | | | $ | (1,962) | | | | | $ | (4,047) | | | | | $ | (1,036) | | | | | $ | 1,049 | | |
| | | Financial Statements as included | | | Subtract | | | Add | | | Pro Forma as Presented | | ||||||||||||
| | | For the year ended March 31, 2022 | | | For nine months ended December 31, 2021 | | | For three months ended June 30, 2022 | | | For six months ended June 30, 2022 | | ||||||||||||
Revenue, net | | | | $ | 103,068 | | | | | $ | 75,864 | | | | | $ | 28,614 | | | | | $ | 55,818 | | |
Cost of goods sold | | | | | 77,899 | | | | | | 58,038 | | | | | | 21,924 | | | | | | 41,785 | | |
Gross profit | | | | | 25,169 | | | | | | 17,826 | | | | | | 6,690 | | | | | | 14,033 | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | | | | | | | | | | |
Selling, general & administrative expenses | | | | | 27,379 | | | | | | 24,718 | | | | | | 5,900 | | | | | | 8,561 | | |
Depreciation & amortization | | | | | 2,528 | | | | | | 1,857 | | | | | | 639 | | | | | | 1,311 | | |
Total operating expenses | | | | | 29,907 | | | | | | 26,575 | | | | | | 6,540 | | | | | | 9,872 | | |
Profit/ (Loss) from operations before other income (expense) and share of profit on equity accounted investments | | | | | (4,738) | | | | | | (8,749) | | | | | | 150 | | | | | | 4,161 | | |
OTHER INCOME / (EXPENSE) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income | | | | | 242 | | | | | | 231 | | | | | | 61 | | | | | | 72 | | |
Interest expense | | | | | (9,915) | | | | | | (6,949) | | | | | | (2,845) | | | | | | (5,811) | | |
Other income/ (expense), net | | | | | 6,985 | | | | | | 7,523 | | | | | | 247 | | | | | | (291) | | |
Total other income/ (expense) | | | | | (2,688) | | | | | | 805 | | | | | | (2,537) | | | | | | (6,030) | | |
Profit/ (Loss) before income taxes and share of profit on equity accounted investments | | | | | (7,426) | | | | | | (7,944) | | | | | | (2,387) | | | | | | (1,869) | | |
Benefit/ (Provision) For income taxes | | | | | 343 | | | | | | (104) | | | | | | (577) | | | | | | (130) | | |
Net Profit/ (Loss) before share of profit on equity accounted investments | | | | | (7,083) | | | | | | (8,048) | | | | | | (2,964) | | | | | | (1,999) | | |
Share of profit on equity accounted investment | | | | | 1,710 | | | | | | 1,610 | | | | | | (24) | | | | | | 76 | | |
Net Profit/ (Loss) after share of profit on equity accounted investments | | | | | (5,373) | | | | | | (6,438) | | | | | | (2,988) | | | | | | (1,923) | | |
Net Profit/ (Loss) attributable to noncontrolling interest | | | | | (223) | | | | | | (469) | | | | | | (100) | | | | | | 146 | | |
Net Profit/ (Loss) attributable to owners | | | | $ | (5,150) | | | | | $ | (5,969) | | | | | $ | (2,889) | | | | | $ | (2,069) | | |
| | | Financial statements | | | Adjustments | | | Pro Forma as presented | | |||||||||
| | | Add | | |||||||||||||||
| | | 9 months ended 12/31/2021 | | | Three Months ended 3/31/2021 | | | Year Ended 12/31/2021 | | |||||||||
Revenue | | | | $ | 75,864 | | | | | $ | 29,704 | | | | | $ | 105,568 | | |
Cost of revenue | | | | | 58,038 | | | | | | 29,221 | | | | | | 87,259 | | |
Gross Profit | | | | | 17,826 | | | | | | 483 | | | | | | 18,309 | | |
Selling, general and administrative expenses | | | | | 26,575 | | | | | | 2,638 | | | | | | 29,213 | | |
Restructuring | | | | | | | | | | | | | | | | | | | |
Management fees | | | | | | | | | | | | | | | | | | | |
Intangible impairment | | | | | | | | | | | | | | | | | | | |
Goodwill impairment | | | | | | | | | | | | | | | | | | | |
Total operating costs and expenses | | | | | 26,575 | | | | | | 2,638 | | | | | | 29,213 | | |
Loss from operations | | | | | (8,749) | | | | | | (2,155) | | | | | | (10,904) | | |
Interest income | | | | | 231 | | | | | | 18 | | | | | | 249 | | |
Interest expense | | | | | (6,949) | | | | | | (4,361) | | | | | | (11,310) | | |
Other income, net | | | | | 7,523 | | | | | | 1,265 | | | | | | 8,788 | | |
Foreign exchange | | | | | | | | | | | | | | | | | | | |
Total other income (expense) | | | | | 805 | | | | | | (3,078) | | | | | | (2,273) | | |
Net income (loss) before income tax provision | | | | | (7,944) | | | | | | (5,233) | | | | | | (13,177) | | |
Income tax provision | | | | | (104) | | | | | | (103) | | | | | | (207) | | |
Net income (loss) before equity method investment | | | | | (8,048) | | | | | | (5,336) | | | | | | (13,384) | | |
Share of profit on equity method investment | | | | | 1,610 | | | | | | 355 | | | | | | 1,965 | | |
Net income (loss) after equity method investment | | | | | (6,438) | | | | | | (4,981) | | | | | | (11,419) | | |
Net loss attributable to noncontrolling interest | | | | | (469) | | | | | | (364) | | | | | | (833) | | |
Net income (loss) | | | | $ | (5,969) | | | | | $ | (4,617) | | | | | $ | (10,586) | | |
| | 24,500 | | | | Total expected to be incurred | |
| | (5,935) | | | | deferred underwriter fee (See (B)) | |
| | (2,670) | | | | GACQ incurred through 6.30.22 | |
| | (811) | | | | GP Global incurred through 6.30.22 | |
| | (5,000) | | | | Luminex incurred through 6.30.22 | |
| | 10,084 | | | | Sub total | |
| | (4,100) | | | | Exclude Luminex acceleration of stock compensation as non cash | |
| | 5,984 | | | | Adjusted total | |
| | 4,000 | | | | Cash payment | |
| | 1,984 | | | | Deferred to accrued liabilities | |
| | | Carrying Value | | | Fair Value | | ||||||
Working capital | | | | | 55,222 | | | | | | 62,619 | | |
Property, Plant and Equipment | | | | | 28,070 | | | | | | 26,334 | | |
Right of use asset | | | | | 22,550 | | | | | | 22,550 | | |
Deferred taxes | | | | | (496) | | | | | | (496) | | |
Non-current assets | | | | | 4,446 | | | | | | 4,446 | | |
Trade Names and Trademarks | | | | | — | | | | | | 14,000 | | |
ERP Software | | | | | — | | | | | | 10,000 | | |
Customer Relationships | | | | | — | | | | | | 22,000 | | |
Goodwill | | | | | — | | | | | | 24,120 | | |
Intangibles | | | | | 4,839 | | | | | | — | | |
Non-current liabilities | | | | | (3,508) | | | | | | (3,508) | | |
Lease liability | | | | | (22,065) | | | | | | (22,065) | | |
Debt | | | | | (69,777) | | | | | | (69,777) | | |
Equity/Purchase price | | | | | 19,281 | | | | | | 90,223 | | |
| | | Carrying Value | | | Fair Value | | ||||||
Working capital | | | | | (15,558) | | | | | | (13,169) | | |
Restricted cash | | | | | 25,624 | | | | | | 25,624 | | |
Property, Plant and Equipment | | | | | 27,163 | | | | | | 27,163 | | |
Deferred taxes | | | | | 47 | | | | | | 47 | | |
Non-current assets | | | | | 6,624 | | | | | | 6,624 | | |
Trade Names and Trademarks | | | | | — | | | | | | 60,000 | | |
ERP Software | | | | | — | | | | | | 22,000 | | |
Customer Relationships | | | | | — | | | | | | 38,000 | | |
Goodwill | | | | | — | | | | | | 109,414 | | |
Non-current liabilities | | | | | (543) | | | | | | (543) | | |
Debt | | | | | (193,460) | | | | | | (193,460) | | |
Equity/Purchase price | | | | | (150,103) | | | | | | 81,700 | | |
| | | Purchase Price (Gross) | | |||||||||||||||
| | | $220 million | | | $245 million | | | $270 million | | |||||||||
Working capital | | | | | (13,169) | | | | | | (13,169) | | | | | | (13,169) | | |
Restricted cash | | | | | 25,624 | | | | | | 25,624 | | | | | | 25,624 | | |
Property, Plant and Equipment | | | | | 27,163 | | | | | | 27,163 | | | | | | 27,163 | | |
Deferred taxes | | | | | 47 | | | | | | 47 | | | | | | 47 | | |
Non-current assets | | | | | 6,624 | | | | | | 6,624 | | | | | | 6,624 | | |
Trade Names and Trademarks | | | | | 60,000 | | | | | | 60,000 | | | | | | 60,000 | | |
ERP Software | | | | | 18,000 | | | | | | 20,000 | | | | | | 22,000 | | |
Customer Relationships | | | | | 35,000 | | | | | | 37,000 | | | | | | 38,000 | | |
Goodwill | | | | | 66,414 | | | | | | 87,414 | | | | | | 109,414 | | |
Non-current liabilities | | | | | (543) | | | | | | (543) | | | | | | (543) | | |
Debt | | | | | (193,460) | | | | | | (193,460) | | | | | | (193,460) | | |
Purchase price | | | | | 31,700 | | | | | | 56,700 | | | | | | 81,700 | | |
| | | | | | $160 million Purchase Price | | |||||||||
Asset Class | | | Life | | | Asset Amount | | | Semi-Annual Expense | | ||||||
Trade Names and Trademarks | | | Indefinite | | | | | 14,000 | | | | | | — | | |
ERP Software | | | 5 | | | | | 10,000 | | | | | | 1,000 | | |
Customer Relationships | | | 8 | | | | | 22,000 | | | | | | 1,375 | | |
Total | | | | | | | | | | | | | | 2,375 | | |
| | | | | | $220 million Purchase Price | | | $245 million Purchase Price | | | $270 million Purchase Price | | |||||||||||||||||||||||||||
Asset Class | | | Life | | | Asset Amount | | | Semi-Annual Expense | | | Asset Amount | | | Semi-Annual Expense | | | Asset Amount | | | Semi-Annual Expense | | ||||||||||||||||||
Trade Names and Trademarks | | | Indefinite | | | | | 60,000 | | | | | | — | | | | | | 60,000 | | | | | | — | | | | | | 60,000 | | | | | | — | | |
ERP Software | | | 5 | | | | | 18,000 | | | | | | 1,800 | | | | | | 20,000 | | | | | | 2,000 | | | | | | 22,000 | | | | | | 2,200 | | |
Customer Relationships | | | 8 | | | | | 35,000 | | | | | | 2,500 | | | | | | 37,000 | | | | | | 2,643 | | | | | | 38,000 | | | | | | 2,714 | | |
Total | | | 8 | | | | | | | | | | | 4,300 | | | | | | | | | | | | 4,643 | | | | | | | | | | | | 4,914 | | |
| | | Total | | | Seller note | | | Sponsor note | | |||||||||
Base note | | | | | 94,638 | | | | | | 90,223 | | | | | | 4,415 | | |
With 10% PIK fee | | | | | 103,660 | | | | | | 99,245 | | | | | | 0 | | |
12% interest (6 months) | | | | | 6,220 | | | | | | 5,955 | | | | | | 265 | | |
| | | | | | $160 million Purchase Price | | |||||||||
Asset Class | | | Life | | | Asset Amount | | | Annual Expense | | ||||||
Trade Names And Trademarks | | | Indefinite | | | | | 14,000 | | | | | | — | | |
ERP Software | | | 5 | | | | | 10,000 | | | | | | 2,000 | | |
Customer | | | | | | | | | | | | | | | | |
Relationships | | | 8 | | | | | 22,000 | | | | | | 2,750 | | |
Total | | | | | | | | | | | | | | 4,750 | | |
| | | | | | $220 million Purchase Price | | | $245 million Purchase Price | | | $270 million Purchase Price | | |||||||||||||||||||||||||||
Asset Class | | | Life | | | Asset Amount | | | Annual Expense | | | Asset Amount | | | Annual Expense | | | Asset Amount | | | Annual Expense | | ||||||||||||||||||
Trade Names and Trademarks | | | Indefinite | | | | | 60,000 | | | | | | — | | | | | | 60,000 | | | | | | — | | | | | | 60,000 | | | | | | — | | |
ERP Software | | | 5 | | | | | 18,000 | | | | | | 3,600 | | | | | | 20,000 | | | | | | 4,000 | | | | | | 22,000 | | | | | | 4,400 | | |
Customer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Relationships . | | | 7 | | | | | 35,000 | | | | | | 5,000 | | | | | | 37,000 | | | | | | 5,286 | | | | | | 38,000 | | | | | | 5,429 | | |
Total | | | | | | | | | | | | | | 8,600 | | | | | | | | | | | | 9,286 | | | | | | | | | | | | 9,829 | | |
| | | Total | | | Seller note | | | Sponsor note | | |||||||||
Base note | | | | | 94,638 | | | | | | 90,223 | | | | | | 4,415 | | |
With 10% PIK fee | | | | | 103,660 | | | | | | 99,245 | | | | | | 0 | | |
12% interest | | | | | 12,439 | | | | | | 11,909 | | | | | | 530 | | |
Amortization of PIK fee | | | | | 9,022 | | | | | | | | | | | | | | |
Total expense | | | | | 21,462 | | | | | | | | | | | | | | |
| 23,500 | | | Total expected to be incurred | |
| (5,935) | | | deferred underwriter fee (See (B)) | |
| (2,670) | | | GACQ incurred through 6.30.22 | |
| (5,000) | | | Luminex incurred through 6.30.22 | |
| 9,895 | | | Sub total | |
| (4,100) | | | Exclude Luminex acceleration of stock compensation as non cash | |
| 5,795 | | | Adjusted total | |
| 4,000 | | | Cash payment | |
| 1,795 | | | Deferred to accrued liabilities | |
| | | Carrying Value | | | Fair Value | | ||||||
Working capital | | | | | 55,222 | | | | | | 62,619 | | |
Property, Plant and Equipment | | | | | 28,070 | | | | | | 26,334 | | |
Right of use asset | | | | | 22,550 | | | | | | 22,550 | | |
Deferred taxes | | | | | (496) | | | | | | (496) | | |
Non-current assets | | | | | 4,446 | | | | | | 4,446 | | |
Trade Names and Trademarks | | | | | — | | | | | | 14,000 | | |
ERP Software | | | | | — | | | | | | 10,000 | | |
Customer Relationships | | | | | — | | | | | | 22,000 | | |
Goodwill | | | | | — | | | | | | 24,120 | | |
Intangibles | | | | | 4,839 | | | | | | — | | |
Non-current liabilities | | | | | (3,508) | | | | | | (3,508) | | |
Lease liability | | | | | (22,065) | | | | | | (22,065) | | |
Debt | | | | | (69,777) | | | | | | (69,777) | | |
Equity/Purchase price | | | | | 19,281 | | | | | | 90,223 | | |
| | | | | | $160 million Purchase Price | | |||||||||
Asset Class | | | Life | | | Asset Amount | | | Semi-Annual Expense | | ||||||
Trade Names and Trademarks | | | Indefinite | | | | | 14,000 | | | | | | — | | |
ERP Software | | | 5 | | | | | 10,000 | | | | | | 1,000 | | |
Customer Relationships | | | 8 | | | | | 22,000 | | | | | | 1,375 | | |
Total | | | | | | | | | | | | | | 2,375 | | |
| | | Total | | | Seller note | | | Sponsor note | | |||||||||
Base note | | | | | 95,938 | | | | | | 90,223 | | | | | | 5,715 | | |
With 10% PIK fee | | | | | 104,960 | | | | | | 99,245 | | | | | | 0 | | |
12% interest (6 months) | | | | | 6,298 | | | | | | 5,955 | | | | | | 343 | | |
| | | | | | $160 million Purchase Price | | |||||||||
Asset Class | | | Life | | | Asset Amount | | | Annual Expense | | ||||||
Trade Names and Trademarks | | | Indefinite | | | | | 14,000 | | | | | | — | | |
ERP Software | | | 5 | | | | | 10,000 | | | | | | 2,000 | | |
Customer Relationships | | | 8 | | | | | 22,000 | | | | | | 2,750 | | |
Total | | | | | | | | | | | | | | 4,750 | | |
| | | Total | | | Seller note | | | Sponsor note | | |||||||||
Base note | | | | | 95,938 | | | | | | 90,223 | | | | | | 5,715 | | |
With 10% PIK fee | | | | | 104,960 | | | | | | 99,245 | | | | | | 0 | | |
12% interest | | | | | 12,596 | | | | | | 11,910 | | | | | | 686 | | |
Amortization of PIK fee | | | | | 9,022 | | | | | | | | | | | | | | |
Total expense | | | | | 21,618 | | | | | | | | | | | | | | |
| | Luminex and GACQ | | | Luminex, GP Global and GACQ | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| | Luminex and GACQ | | Luminex, GP Global and GACQ | | | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | Assuming Proposal 8 not approved and Maximum Redemptions Allowed to close Luminex transaction | | |||||||||||||||||||||||||||||||||||||||||||
| | Assuming Minimum Redemption | | Assuming Maximum Redemption | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||
Shares held by: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
— GACQ’s Public shareholders | | | | 18,263,000 | | | | | 18,263,000 | | | | | 18,263,000 | | | | | 18,263,000 | | | |||||||||||||||||||||||||||||||||||
— GACQ’s Private unitholders | | | | 453,613 | | | | | 453,613 | | | | | 453,613 | | | | | 453,613 | | | |||||||||||||||||||||||||||||||||||
— GACQ’s Sponsor | | | | 4,565,750 | | | | | 4,565,750 | | | | | 4,565,750 | | | | | 4,565,750 | | | |||||||||||||||||||||||||||||||||||
– GACQ’s Public shareholders | | | | 18,263,000 | | | | | 18,263,000 | | | | | 18,263,000 | | | | | 18,263,000 | | | | | 18,263,000 | | | ||||||||||||||||||||||||||||||
– GACQ’s Private unitholders | | | | 453,613 | | | | | 453,613 | | | | | 453,613 | | | | | 453,613 | | | | | 453,613 | | | ||||||||||||||||||||||||||||||
– GACQ’s Sponsor | | | | 4,565,750 | | | | | 4,565,750 | | | | | 4,565,750 | | | | | 4,565,750 | | | | | 4,565,750 | | | ||||||||||||||||||||||||||||||
Total shares held | | | | 23,282,363 | | | | | 23,282,363 | | | | | 23,282,363 | | | | | 23,282,363 | | | | | | 23,282,363 | | | | | 23,282,363 | | | | | 23,282,363 | | | | | 23,282,363 | | | | | 23,282,363 | | | |||||||||
Shares to be issued by GACQ to acquire GP Global | | | | — | | | | | — | | | | | 10,346,400 | | | | | 10,346,400 | | | | | | — | | | | | — | | | | | | | | | | 8,170,000 | | | | | 8,170,000 | | | |||||||||
Bonus shares issued to GACQ’s Public shareholders | | | | — | | | | | — | | | | | | | | | | — | | | | | — | | | ||||||||||||||||||||||||||||||
Shares redeemed | | | | — | | | | | (18,263,000) | | | | | — | | | | | (18,263,000) | | | | | | — | | | | | (18,263,000) | | | | | (9,300,000) | | | | | — | | | | | (18,263,000) | | | |||||||||
Pro forma shares outstanding | | | | 23,282,363 | | | | | 5,019,363 | | | | | 33,628,763 | | | | | 15,365,763 | | | | | | 23,282,363 | | | | | 5,019,363 | | | | | 13,982,363 | | | | | 31,452,363 | | | | | 13,189,363 | | |
| | | Luminex (Historical) | | | GP Global (Historical) | | | GACQ (Historical) | | | Minimum Redemption | | | 25% of Maximum Redemption | | | 50% of Maximum Redemption | | | 75% of Maximum Redemption | | | Maximum Redemption | | ||||||||||||||||||||||||
For the six months ended June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average redeemable common shares outstanding | | | | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average non-redeemable common shares outstanding | | | | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Common shares outstanding | | | | | 50,000 | | | | | | 6,880,000 | | | | | | | | | | | | 33,628,763 | | | | | | 29,063,013 | | | | | | 24,497,263 | | | | | | 19,931,513 | | | | | | 15,365,763 | | |
Net income (loss) per share, basic and diluted | | | | | (182.38) | | | | | | (0.30) | | | | | | | | | | | | (0.50) | | | | | | (0.62) | | | | | | (0.74) | | | | | | (0.91) | | | | | | (1.17) | | |
| | | Luminex (Historical) | | | GP Global (Historical) | | | GACQ (Historical) | | | Minimum Redemption | | | 25% of Maximum Redemption | | | 50% of Maximum Redemption | | | 75% of Maximum Redemption | | | Maximum Redemption | | ||||||||||||||||||||||||
For the six months ended June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average redeemable common shares outstanding | | | | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average non-redeemable common shares outstanding | | | | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average Common shares outstanding | | | | | 50,000 | | | | | | 6,880,000 | | | | | | | | | | | | 31,452,363 | | | | | | 26,886,613 | | | | | | 22,320,863 | | | | | | 17,755,113 | | | | | | 13,189,363 | | |
Net income (loss) per share, basic and diluted | | | | | (182.36) | | | | | | (0.30) | | | | | | | | | | | | (0.53) | | | | | | (0.67) | | | | | | (0.81) | | | | | | (1.02) | | | | | | (1.37) | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Minimum Redemption | | 25% of Maximum Redemption | | 50% of Maximum Redemption | | 75% of Maximum Redemption | | Maximum Redemption | | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Minimum Redemption | | 25% of Maximum Redemption | | 50% of Maximum Redemption | | 75% of Maximum Redemption | | Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
For the year ended December 31, 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Weighted average Common shares outstanding | | | | 50,000 | | | | | 6,880,000 | | | | | 14,904,015 | | | | | 33,628,763 | | | | | 29,063,013 | | | | | 24,497,263 | | | | | 19,931,513 | | | | | 15,365,763 | | | | | | 50,000 | | | | | 6,880,000 | | | | | 14,904,015 | | | | | 31,452,363 | | | | | 26,886,613 | | | | | 22,320,863 | | | | | 17,755,113 | | | | | 13,189,363 | | | ||||||||||||||||
Net income (loss) per share, basic and diluted | | | | 20.98 | | | | | (1.54) | | | | | 0.08 | | | | | (1.70) | | | | | (2.29) | | | | | (2.72) | | | | | (3.34) | | | | | (4.33) | | | | | | 20.98 | | | | | (1.54) | | | | | 0.08 | | | | | (1.82) | | | | | (2.47) | | | | | (2.98) | | | | | (3.75) | | | | | (5.04) | | |
| | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Minimum Redemption | | 25% of Maximum Redemption | | 50% of Maximum Redemption | | 75% of Maximum Redemption | | Maximum Redemption | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2022 | | Luminex (Historical) | | GP Global (Historical) | | GACQ (Historical) | | Minimum Redemption | | 25% of Maximum Redemption | | 50% of Maximum Redemption | | 75% of Maximum Redemption | | Maximum Redemption | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||
Book value per diluted share | | | | 385.62 | | | | | (21.82) | | | | | (0.89) | | | | | 7.37 | | | | | (5.98) | | | | | (7.10) | | | | | (8.73) | | | | | (11.32) | | | | | | 385.62 | | | | | (21.82) | | | | | (0.89) | | | | | 7.88 | | | | | (7.33) | | | | | (8.82) | | | | | (11.09) | | | | | (14.93) | | | ||||||||||||||||
For the six months ended June 30, 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Weighted average redeemable common shares outstanding | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 18,263,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Weighted average non-redeemable common shares outstanding | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,019,363 | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Net income (loss) per share, basic and diluted | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 0.08 | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Weighted average Common shares outstanding | | | | 50,000 | | | | | 6,880,000 | | | | | | | | | | 33,628,763 | | | | | 29,063,013 | | | | | 24,497,263 | | | | | 19,931,513 | | | | | 15,365,763 | | | | | | 50,000 | | | | | 6,880,000 | | | | | | | | | | 31,452,363 | | | | | 26,886,613 | | | | | 22,320,863 | | | | | 17,755,113 | | | | | 13,189,363 | | | ||||||||||||||||
Net income (loss) per share, basic and diluted | | | | (182.38) | | | | | (0.30) | | | | | | | | | | (0.50) | | | | | (0.62) | | | | | (0.74) | | | | | (0.91) | | | | | (1.17) | | | | | | (182.36) | | | | | (0.30) | | | | | | | | | | (0.53) | | | | | (0.67) | | | | | (0.81) | | | | | (1.02) | | | | | (1.37) | | |
DCF Method | | | Low Range | | | High Range | | ||||||
Enterprise Value | | | | | 276.3 | | | | | | 335.3 | | |
Less: Closing Funded Debt | | | | | 206.9 | | | | | | 206.9 | | |
Add: Closing Cash | | | | | 29.4 | | | | | | 29.4 | | |
Equity Value | | | | | 98.8 | | | | | | 157.8 | | |
GPC Method | | | NFY+1 | | | NFY+2 | | | | | | | | | | | | | | ||||||
| | | Low Range | | | High Range | | | Low Range | | | High Range | | ||||||||||||
Enterprise Value | | | | | 273.3 | | | | | | 327.2 | | | | | | 267.4 | | | | | | 320.1 | | |
Less: Closing Funded Debt | | | | | 206.9 | | | | | | 206.9 | | | | | | 206.9 | | | | | | 206.9 | | |
Add: Closing Cash | | | | | 29.4 | | | | | | 29.4 | | | | | | 29.4 | | | | | | 29.4 | | |
Equity Value | | | | | 95.8 | | | | | | 149.7 | | | | | | 89.9 | | | | | | 142.6 | | |
$ M | | | Estimate as on Sep 30, 2021 | | | Estimate as on March 31, 2022 | | | Delta | | |||||||||
Total Bank & External debt | | | | | 113 | | | | | | 110 | | | | | | -3 | | |
CCD | | | | | 44 | | | | | | 88 | | | | | | 44 | | |
Other Debt Items | | | | | 15 | | | | | | 16 | | | | | | 1 | | |
Total Debt | | | | | 172 | | | | | | 214 | | | | | | 42 | | |
Less: Cash | | | | | 45 | | | | | | 32 | | | | | | -13 | | |
Net Debt | | | | | 127 | | | | | | 182 | | | | | | 55 | | |
Enterprise Value | | | | | 270 | | | | | | 270 | | | | | | 0 | | |
Equity Value | | | | | 143 | | | | | | 88 | | | | | | -55 | | |
Enterprise Value | | | Original Estimate as of Sep-2021 | | | Revised Estimate as of May-2022 | | ||||||
| | | $M | | | $M | | ||||||
MVP (US Subsidiary) | | | | | 233 | | | | | | 189 | | |
PIL (India Subsidiary) | | | | | 108 | | | | | | 134 | | |
LS (to be acquired by PIL) | | | | | 8 | | | | | | 10 | | |
GC (Investment by MVP) | | | | | 77 | | | | | | 76 | | |
GP Global Aggregate Enterprise Value | | | | | 426 | | | | | | 408 | | |
Luminex P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Revenue from Operations | | | | | 374 | | | | | | 391 | | | | | | 405 | | | | | | 420 | | | | | | 436 | | |
Cost of goods sold | | | | | 251 | | | | | | 258 | | | | | | 265 | | | | | | 273 | | | | | | 281 | | |
% of Revenue | | | | | 67% | | | | | | 66% | | | | | | 65% | | | | | | 65% | | | | | | 64% | | |
Selling & Distribution Expenses | | | | | 60 | | | | | | 62 | | | | | | 63 | | | | | | 65 | | | | | | 68 | | |
% of Revenue | | | | | 16% | | | | | | 16% | | | | | | 16% | | | | | | 16% | | | | | | 16% | | |
Other Expenses (Gen & Admin Exp) | | | | | 38 | | | | | | 38 | | | | | | 39 | | | | | | 40 | | | | | | 40 | | |
% of Revenue | | | | | 10% | | | | | | 10% | | | | | | 10% | | | | | | 9% | | | | | | 9% | | |
Total Expenses | | | | | 349 | | | | | | 358 | | | | | | 367 | | | | | | 378 | | | | | | 389 | | |
Operating Income | | | | | 25 | | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | |
Operating Margin % | | | | | 7% | | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | |
Other Operating Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | | 25 | | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | |
Adjusted EBITDA % | | | | | 7% | | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | |
GP Global P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Net Revenue from Operations | | | | | 179 | | | | | | 248 | | | | | | 313 | | | | | | 357 | | | | | | 395 | | |
Cost of Goods Sold | | | | | 136 | | | | | | 194 | | | | | | 246 | | | | | | 277 | | | | | | 300 | | |
Less: Inter-Co | | | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | | | 50 | | |
Net cost of goods sold | | | | | 118 | | | | | | 160 | | | | | | 201 | | | | | | 230 | | | | | | 250 | | |
% of Revenue | | | | | 66% | | | | | | 64% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling & Distribution Expenses | | | | | 19 | | | | | | 24 | | | | | | 28 | | | | | | 32 | | | | | | 37 | | |
% of Revenue | | | | | 11% | | | | | | 10% | | | | | | 9% | | | | | | 9% | | | | | | 9% | | |
Other Expenses (Gen & Admin Exp) | | | | | 22 | | | | | | 32 | | | | | | 39 | | | | | | 40 | | | | | | 44 | | |
% of Revenue | | | | | 12% | | | | | | 13% | | | | | | 12% | | | | | | 11% | | | | | | 11% | | |
Total Expenses | | | | | 159 | | | | | | 216 | | | | | | 268 | | | | | | 302 | | | | | | 331 | | |
Operating Income | | | | | 20 | | | | | | 32 | | | | | | 45 | | | | | | 55 | | | | | | 64 | | |
Operating Margin % | | | | | 11% | | | | | | 13% | | | | | | 15% | | | | | | 15% | | | | | | 16% | | |
Other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Less: Inter Co | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Adjusted EBITDA | | | | | 20 | | | | | | 33 | | | | | | 46 | | | | | | 56 | | | | | | 65 | | |
Adjusted EBITDA % | | | | | 11% | | | | | | 13% | | | | | | 15% | | | | | | 16% | | | | | | 17% | | |
Ascense P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Net Revenue from Operations | | | | | 553 | | | | | | 639 | | | | | | 718 | | | | | | 777 | | | | | | 831 | | |
Cost of Goods Sold | | | | | 387 | | | | | | 452 | | | | | | 511 | | | | | | 549 | | | | | | 581 | | |
Less: Inter-Co | | | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | | | 50 | | |
Add/(Less): Synergies | | | | | — | | | | | | (4) | | | | | | (6) | | | | | | (5) | | | | | | (5) | | |
Net cost of goods sold | | | | | 369 | | | | | | 414 | | | | | | 460 | | | | | | 497 | | | | | | 527 | | |
% of Revenue | | | | | 67% | | | | | | 65% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling and Distribution Expenses | | | | | 80 | | | | | | 85 | | | | | | 92 | | | | | | 98 | | | | | | 104 | | |
Add/(Less): Synergies | | | | | — | | | | | | (1) | | | | | | (3) | | | | | | (3) | | | | | | (3) | | |
Net Selling & Distribution Expenses | | | | | 79 | | | | | | 84 | | | | | | 89 | | | | | | 95 | | | | | | 101 | | |
% of Revenue | | | | | 14% | | | | | | 13% | | | | | | 12% | | | | | | 12% | | | | | | 12% | | |
Other Expenses (Gen & Admin Exp) | | | | | 60 | | | | | | 70 | | | | | | 77 | | | | | | 80 | | | | | | 84 | | |
Add/(Less): Synergies | | | | | — | | | | | | -2 | | | | | | -7 | | | | | | (4) | | | | | | (4) | | |
Net Other Expenses (Gen & Admin Exp) | | | | | 60 | | | | | | 69 | | | | | | 70 | | | | | | 76 | | | | | | 80 | | |
% of Revenue | | | | | 11% | | | | | | 11% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | |
Total Expenses | | | | | 508 | | | | | | 567 | | | | | | 619 | | | | | | 668 | | | | | | 708 | | |
Operating Income | | | | | 45 | | | | | | 72 | | | | | | 99 | | | | | | 109 | | | | | | 123 | | |
Operating Margin % | | | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | | | 15% | | |
Other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Less: Inter Co | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Adjusted EBITDA | | | | | 45 | | | | | | 73 | | | | | | 100 | | | | | | 110 | | | | | | 124 | | |
Adjusted EBITDA % | | | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | | | 15% | | |
DCF Method | | | Low Range | | | High Range | | ||||||
Enterprise Value | | | | | 276.3 | | | | | | 335.3 | | |
Less: Closing Funded Debt | | | | | 206.9 | | | | | | 206.9 | | |
Add: Closing Cash | | | | | 29.4 | | | | | | 29.4 | | |
Equity Value | | | | | 98.8 | | | | | | 157.8 | | |
GPC Method | | | NFY+1 | | | NFY+2 | | | | | | | | | | | | | | ||||||
| | | Low Range | | | High Range | | | Low Range | | | High Range | | ||||||||||||
Enterprise Value | | | | | 273.3 | | | | | | 327.2 | | | | | | 267.4 | | | | | | 320.1 | | |
Less: Closing Funded Debt | | | | | 206.9 | | | | | | 206.9 | | | | | | 206.9 | | | | | | 206.9 | | |
Add: Closing Cash | | | | | 29.4 | | | | | | 29.4 | | | | | | 29.4 | | | | | | 29.4 | | |
Equity Value | | | | | 95.8 | | | | | | 149.7 | | | | | | 89.9 | | | | | | 142.6 | | |
$ M | | | Estimate as on Sep 30, 2021 | | | Estimate as on March 31, 2022 | | | Delta | | |||||||||
Total Bank & External debt | | | | | 113 | | | | | | 110 | | | | | | -3 | | |
CCD | | | | | 44 | | | | | | 88 | | | | | | 44 | | |
Other Debt Items | | | | | 15 | | | | | | 16 | | | | | | 1 | | |
Total Debt | | | | | 172 | | | | | | 214 | | | | | | 42 | | |
Less: Cash | | | | | 45 | | | | | | 32 | | | | | | -13 | | |
Net Debt | | | | | 127 | | | | | | 182 | | | | | | 55 | | |
Enterprise Value | | | | | 270 | | | | | | 270 | | | | | | 0 | | |
Equity Value | | | | | 143 | | | | | | 88 | | | | | | -55 | | |
Enterprise Value | | | Original Estimate as of Sep-2021 | | | Revised Estimate as of May-2022 | | ||||||
| | | $M | | | $M | | ||||||
MVP (US Subsidiary) | | | | | 233 | | | | | | 189 | | |
PIL (India Subsidiary) | | | | | 108 | | | | | | 134 | | |
LS (to be acquired by PIL) | | | | | 8 | | | | | | 10 | | |
GC (Investment by MVP) | | | | | 77 | | | | | | 76 | | |
GP Global Aggregate Enterprise Value | | | | | 426 | | | | | | 408 | | |
Luminex P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Revenue from Operations | | | | | 374 | | | | | | 391 | | | | | | 405 | | | | | | 420 | | | | | | 436 | | |
Cost of goods sold | | | | | 251 | | | | | | 258 | | | | | | 265 | | | | | | 273 | | | | | | 281 | | |
% of Revenue | | | | | 67% | | | | | | 66% | | | | | | 65% | | | | | | 65% | | | | | | 64% | | |
Selling & Distribution Expenses | | | | | 60 | | | | | | 62 | | | | | | 63 | | | | | | 65 | | | | | | 68 | | |
% of Revenue | | | | | 16% | | | | | | 16% | | | | | | 16% | | | | | | 16% | | | | | | 16% | | |
Other Expenses (Gen & Admin Exp) | | | | | 38 | | | | | | 38 | | | | | | 39 | | | | | | 40 | | | | | | 40 | | |
% of Revenue | | | | | 10% | | | | | | 10% | | | | | | 10% | | | | | | 9% | | | | | | 9% | | |
Total Expenses | | | | | 349 | | | | | | 358 | | | | | | 367 | | | | | | 378 | | | | | | 389 | | |
Operating Income | | | | | 25 | | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | |
Operating Margin % | | | | | 7% | | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | |
Other Operating Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | | 25 | | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | |
Adjusted EBITDA % | | | | | 7% | | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | |
GP Global P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Net Revenue from Operations | | | | | 179 | | | | | | 248 | | | | | | 313 | | | | | | 357 | | | | | | 395 | | |
Cost of Goods Sold | | | | | 136 | | | | | | 194 | | | | | | 246 | | | | | | 277 | | | | | | 300 | | |
Less: Inter-Co | | | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | | | 50 | | |
Net cost of goods sold | | | | | 118 | | | | | | 160 | | | | | | 201 | | | | | | 230 | | | | | | 250 | | |
% of Revenue | | | | | 66% | | | | | | 64% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling & Distribution Expenses | | | | | 19 | | | | | | 24 | | | | | | 28 | | | | | | 32 | | | | | | 37 | | |
% of Revenue | | | | | 11% | | | | | | 10% | | | | | | 9% | | | | | | 9% | | | | | | 9% | | |
Other Expenses (Gen & Admin Exp) | | | | | 22 | | | | | | 32 | | | | | | 39 | | | | | | 40 | | | | | | 44 | | |
% of Revenue | | | | | 12% | | | | | | 13% | | | | | | 12% | | | | | | 11% | | | | | | 11% | | |
Total Expenses | | | | | 159 | | | | | | 216 | | | | | | 268 | | | | | | 302 | | | | | | 331 | | |
Operating Income | | | | | 20 | | | | | | 32 | | | | | | 45 | | | | | | 55 | | | | | | 64 | | |
Operating Margin % | | | | | 11% | | | | | | 13% | | | | | | 15% | | | | | | 15% | | | | | | 16% | | |
Other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Less: Inter Co | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Adjusted EBITDA | | | | | 20 | | | | | | 33 | | | | | | 46 | | | | | | 56 | | | | | | 65 | | |
Adjusted EBITDA % | | | | | 11% | | | | | | 13% | | | | | | 15% | | | | | | 16% | | | | | | 17% | | |
Ascense P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Net Revenue from Operations | | | | | 553 | | | | | | 639 | | | | | | 718 | | | | | | 777 | | | | | | 831 | | |
Cost of Goods Sold | | | | | 387 | | | | | | 452 | | | | | | 511 | | | | | | 549 | | | | | | 581 | | |
Less: Inter-Co | | | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | | | 50 | | |
Add/(Less): Synergies | | | | | — | | | | | | (4) | | | | | | (6) | | | | | | (5) | | | | | | (5) | | |
Net cost of goods sold | | | | | 369 | | | | | | 414 | | | | | | 460 | | | | | | 497 | | | | | | 527 | | |
% of Revenue | | | | | 67% | | | | | | 65% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling and Distribution Expenses | | | | | 80 | | | | | | 85 | | | | | | 92 | | | | | | 98 | | | | | | 104 | | |
Add/(Less): Synergies | | | | | — | | | | | | (1) | | | | | | (3) | | | | | | (3) | | | | | | (3) | | |
Net Selling & Distribution Expenses | | | | | 79 | | | | | | 84 | | | | | | 89 | | | | | | 95 | | | | | | 101 | | |
% of Revenue | | | | | 14% | | | | | | 13% | | | | | | 12% | | | | | | 12% | | | | | | 12% | | |
Other Expenses (Gen & Admin Exp) | | | | | 60 | | | | | | 70 | | | | | | 77 | | | | | | 80 | | | | | | 84 | | |
Add/(Less): Synergies | | | | | — | | | | | | -2 | | | | | | -7 | | | | | | (4) | | | | | | (4) | | |
Net Other Expenses (Gen & Admin Exp) | | | | | 60 | | | | | | 69 | | | | | | 70 | | | | | | 76 | | | | | | 80 | | |
% of Revenue | | | | | 11% | | | | | | 11% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | |
Total Expenses | | | | | 508 | | | | | | 567 | | | | | | 619 | | | | | | 668 | | | | | | 708 | | |
Operating Income | | | | | 45 | | | | | | 72 | | | | | | 99 | | | | | | 109 | | | | | | 123 | | |
Operating Margin % | | | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | | | 15% | | |
Other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Less: Inter Co | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Adjusted EBITDA | | | | | 45 | | | | | | 73 | | | | | | 100 | | | | | | 110 | | | | | | 124 | | |
Adjusted EBITDA % | | | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | | | 15% | | |
DCF Method | | | Low Range | | | High Range | | ||||||
Enterprise Value | | | | | 276.3 | | | | | | 335.3 | | |
Less: Closing Funded Debt | | | | | 206.9 | | | | | | 206.9 | | |
Add: Closing Cash | | | | | 29.4 | | | | | | 29.4 | | |
Equity Value | | | | | 98.8 | | | | | | 157.8 | | |
GPC Method | | | NFY+1 | | | NFY+2 | | | | | | | | | | | | | | ||||||
| | | Low Range | | | High Range | | | Low Range | | | High Range | | ||||||||||||
Enterprise Value | | | | | 273.3 | | | | | | 327.2 | | | | | | 267.4 | | | | | | 320.1 | | |
Less: Closing Funded Debt | | | | | 206.9 | | | | | | 206.9 | | | | | | 206.9 | | | | | | 206.9 | | |
Add: Closing Cash | | | | | 29.4 | | | | | | 29.4 | | | | | | 29.4 | | | | | | 29.4 | | |
Equity Value | | | | | 95.8 | | | | | | 149.7 | | | | | | 89.9 | | | | | | 142.6 | | |
$ M | | | Estimate as on Sep 30, 2021 | | | Estimate as on March 31, 2022 | | | Delta | | |||||||||
Total Bank & External debt | | | | | 113 | | | | | | 110 | | | | | | -3 | | |
CCD | | | | | 44 | | | | | | 88 | | | | | | 44 | | |
Other Debt Items | | | | | 15 | | | | | | 16 | | | | | | 1 | | |
Total Debt | | | | | 172 | | | | | | 214 | | | | | | 42 | | |
Less: Cash | | | | | 45 | | | | | | 32 | | | | | | -13 | | |
Net Debt | | | | | 127 | | | | | | 182 | | | | | | 55 | | |
Enterprise Value | | | | | 270 | | | | | | 270 | | | | | | 0 | | |
Equity Value | | | | | 143 | | | | | | 88 | | | | | | -55 | | |
Enterprise Value | | | Original Estimate as of Sep-2021 | | | Revised Estimate as of May-2022 | | ||||||
| | | $M | | | $M | | ||||||
MVP (US Subsidiary) | | | | | 233 | | | | | | 189 | | |
PIL (India Subsidiary) | | | | | 108 | | | | | | 134 | | |
LS (to be acquired by PIL) | | | | | 8 | | | | | | 10 | | |
GC (Investment by MVP) | | | | | 77 | | | | | | 76 | | |
GP Global Aggregate Enterprise Value | | | | | 426 | | | | | | 408 | | |
Luminex P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Revenue from Operations | | | | | 374 | | | | | | 391 | | | | | | 405 | | | | | | 420 | | | | | | 436 | | |
Cost of goods sold | | | | | 251 | | | | | | 258 | | | | | | 265 | | | | | | 273 | | | | | | 281 | | |
% of Revenue | | | | | 67% | | | | | | 66% | | | | | | 65% | | | | | | 65% | | | | | | 64% | | |
Selling & Distribution Expenses | | | | | 60 | | | | | | 62 | | | | | | 63 | | | | | | 65 | | | | | | 68 | | |
% of Revenue | | | | | 16% | | | | | | 16% | | | | | | 16% | | | | | | 16% | | | | | | 16% | | |
Other Expenses (Gen & Admin Exp) | | | | | 38 | | | | | | 38 | | | | | | 39 | | | | | | 40 | | | | | | 40 | | |
% of Revenue | | | | | 10% | | | | | | 10% | | | | | | 10% | | | | | | 9% | | | | | | 9% | | |
Total Expenses | | | | | 349 | | | | | | 358 | | | | | | 367 | | | | | | 378 | | | | | | 389 | | |
Operating Income | | | | | 25 | | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | |
Operating Margin % | | | | | 7% | | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | |
Other Operating Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | | 25 | | | | | | 33 | | | | | | 38 | | | | | | 42 | | | | | | 47 | | |
Adjusted EBITDA % | | | | | 7% | | | | | | 8% | | | | | | 9% | | | | | | 10% | | | | | | 11% | | |
GP Global P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Net Revenue from Operations | | | | | 179 | | | | | | 248 | | | | | | 313 | | | | | | 357 | | | | | | 395 | | |
Cost of Goods Sold | | | | | 136 | | | | | | 194 | | | | | | 246 | | | | | | 277 | | | | | | 300 | | |
Less: Inter-Co | | | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | | | 50 | | |
Net cost of goods sold | | | | | 118 | | | | | | 160 | | | | | | 201 | | | | | | 230 | | | | | | 250 | | |
% of Revenue | | | | | 66% | | | | | | 64% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling & Distribution Expenses | | | | | 19 | | | | | | 24 | | | | | | 28 | | | | | | 32 | | | | | | 37 | | |
% of Revenue | | | | | 11% | | | | | | 10% | | | | | | 9% | | | | | | 9% | | | | | | 9% | | |
Other Expenses (Gen & Admin Exp) | | | | | 22 | | | | | | 32 | | | | | | 39 | | | | | | 40 | | | | | | 44 | | |
% of Revenue | | | | | 12% | | | | | | 13% | | | | | | 12% | | | | | | 11% | | | | | | 11% | | |
Total Expenses | | | | | 159 | | | | | | 216 | | | | | | 268 | | | | | | 302 | | | | | | 331 | | |
Operating Income | | | | | 20 | | | | | | 32 | | | | | | 45 | | | | | | 55 | | | | | | 64 | | |
Operating Margin % | | | | | 11% | | | | | | 13% | | | | | | 15% | | | | | | 15% | | | | | | 16% | | |
Other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Less: Inter Co | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Adjusted EBITDA | | | | | 20 | | | | | | 33 | | | | | | 46 | | | | | | 56 | | | | | | 65 | | |
Adjusted EBITDA % | | | | | 11% | | | | | | 13% | | | | | | 15% | | | | | | 16% | | | | | | 17% | | |
Ascense P&L (In USD Mn) | | | FY22 | | | FY23 | | | FY24 | | | FY25 | | | FY26 | | |||||||||||||||
Net Revenue from Operations | | | | | 553 | | | | | | 639 | | | | | | 718 | | | | | | 777 | | | | | | 831 | | |
Cost of Goods Sold | | | | | 387 | | | | | | 452 | | | | | | 511 | | | | | | 549 | | | | | | 581 | | |
Less: Inter-Co | | | | | 18 | | | | | | 34 | | | | | | 45 | | | | | | 47 | | | | | | 50 | | |
Add/(Less): Synergies | | | | | — | | | | | | (4) | | | | | | (6) | | | | | | (5) | | | | | | (5) | | |
Net cost of goods sold | | | | | 369 | | | | | | 414 | | | | | | 460 | | | | | | 497 | | | | | | 527 | | |
% of Revenue | | | | | 67% | | | | | | 65% | | | | | | 64% | | | | | | 64% | | | | | | 63% | | |
Selling and Distribution Expenses | | | | | 80 | | | | | | 85 | | | | | | 92 | | | | | | 98 | | | | | | 104 | | |
Add/(Less): Synergies | | | | | — | | | | | | (1) | | | | | | (3) | | | | | | (3) | | | | | | (3) | | |
Net Selling & Distribution Expenses | | | | | 79 | | | | | | 84 | | | | | | 89 | | | | | | 95 | | | | | | 101 | | |
% of Revenue | | | | | 14% | | | | | | 13% | | | | | | 12% | | | | | | 12% | | | | | | 12% | | |
Other Expenses (Gen & Admin Exp) | | | | | 60 | | | | | | 70 | | | | | | 77 | | | | | | 80 | | | | | | 84 | | |
Add/(Less): Synergies | | | | | — | | | | | | -2 | | | | | | -7 | | | | | | (4) | | | | | | (4) | | |
Net Other Expenses (Gen & Admin Exp) | | | | | 60 | | | | | | 69 | | | | | | 70 | | | | | | 76 | | | | | | 80 | | |
% of Revenue | | | | | 11% | | | | | | 11% | | | | | | 10% | | | | | | 10% | | | | | | 10% | | |
Total Expenses | | | | | 508 | | | | | | 567 | | | | | | 619 | | | | | | 668 | | | | | | 708 | | |
Operating Income | | | | | 45 | | | | | | 72 | | | | | | 99 | | | | | | 109 | | | | | | 123 | | |
Operating Margin % | | | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | | | 15% | | |
Other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Less: Inter Co | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net other Operating Income | | | | | 0 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 1 | | |
Adjusted EBITDA | | | | | 45 | | | | | | 73 | | | | | | 100 | | | | | | 110 | | | | | | 124 | | |
Adjusted EBITDA % | | | | | 8% | | | | | | 11% | | | | | | 14% | | | | | | 14% | | | | | | 15% | | |
| | | | Current Charter | | | Proposed Charter | |
| Name Change | | | GACQ’s current name is Global Consumer Acquisition Corp. | | | Under the Proposed Charter, the Combined Company’s name will be Ascense, Inc. | |
| Provisions Specific to a Blank Check Company | | | Under the Current Charter, Article SIXTH sets forth various provisions related to GACQ’s operation as a blank check company prior to the consummation of an initial business combination. | | | The Proposed Charter will not include these blank check company provisions because, upon consummation of the Business Combination, GACQ will cease to be a blank check company. In addition, the provisions requiring that the proceeds from its initial public offering be held in a trust account until a business combination or liquidation of GACQ and the terms governing GACQ’s consummation of a proposed business combination will not be applicable following consummation of the Business Combination. | |
| Authorized Preferred Stock | | | The Current Charter authorizes the issuance of up to 1,000,000 shares of preferred stock, par value $0.0001 per share. | | | The Proposed Charter will authorize the issuance of up to 10,000,000 shares of “blank check” preferred stock, the rights, preferences and privileges of which may be designated from time to time by the Combined Company’s Board to increase the number of outstanding shares and discourage a takeover attempt. | |
| Voting Threshold for | | | The Current Charter requires the approval of more than 60% of the | | | The Proposed Charter will provide that the removal of directors will require the vote of | |
| | | | Current Charter | | | Proposed Charter | |
| Removal of Directors | | | voting power of GACQ’s then-outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, to remove directors. | | | holders of more than 66 2∕3% of the voting power of the Combined Company’s then-outstanding shares of capital stock entitled to vote generally at an election of directors, voting together as a single class. | |
| Business Combinations | | | Current Charter was silent | | | The Combined Company elects not to be governed by Section 203 of the DGCL. The Combined Company shall not engage in any business combination with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder, unless (i) prior to the date of the transaction, the Combined Company’s Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the Combined Company’s voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder), or (iii) on or subsequent to such time, the business combination is approved by the Combined Company’s Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock of is not owned by the interested stockholder. | |
| | | | Current Charter | | | Proposed Charter | |
| Advisory Charter Proposal A — Provisions Specific to a Blank Check Company | | | Under the Current Charter, Article SIXTH sets forth various provisions related to GACQ’s operation as a blank check company prior to the consummation of an initial business combination. | | | The Proposed Charter will not include these blank check company provisions because, upon consummation of the Business Combination, GACQ will cease to be a blank check company. In addition, the provisions requiring that the proceeds from its initial public offering be held in a trust account until a business combination or liquidation of GACQ and the terms governing GACQ’s consummation of a proposed business combination will not be applicable following consummation of the Business Combination. | |
| Advisory Charter Proposal B — Authorized Shares of Blank Check Preferred Stock | | | The Current Charter authorizes the issuance of up to 1,000,000 shares of preferred stock, par value $0.0001 per share. | | | The Proposed Charter will authorize the issuance of up to 10,000,000 shares of “blank check” preferred stock, the rights, preferences and privileges of which may be designated from time to time by the Combined Company’s Board to increase the number of outstanding shares and discourage a takeover attempt. | |
| Advisory Charter Proposal C — Voting Threshold for Director Removal | | | The Current Charter requires the approval of more than 60% of the voting power of GACQ’s then-outstanding shares of capital stock entitled to vote generally in the election of directors, voting together as a single class, to remove directors. | | | The Proposed Charter will provide that the removal of directors will require the vote of holders of more than 66 2/3% of the voting power of the Combined Company’s then-outstanding shares of capital stock entitled to vote generally at an election of directors, voting together as a single class. | |
| | | | Current Charter | | | Proposed Charter | |
| Advisory Charter Proposal D — Business Combinations | | | Current Charter was silent | | | The Combined Company elects not to be governed by Section 203 of the DGCL. The Combined Company shall not engage in any business combination with any “interested stockholder” for a three-year period following the time that the stockholder became an interested stockholder, unless (i) prior to the date of the transaction, the Combined Company’s Board approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder, (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the Combined Company’s voting stock outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder), or (iii) on or subsequent to such time, the business combination is approved by the Combined Company’s Board and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock of is not owned by the interested stockholder. | |
Name | | | Age | | | Position | |
Rohan Ajila | | | | | Chief Executive Officer, Chief Financial Officer and Co-Chairman of the Board of Directors | | |
Gautham Pai | | | | | Co-Chairman of the Board of Directors | | |
Art Drogue | | | | | Director | | |
Tom Clausen | | | | | Director | | |
Denis Tse | | | 46 | | | Director | |
Sergio Pedreiro | | | 57 | | | Director | |
Name | | | Age | | | Position | |
Rohan Ajila | | | | | Chief Executive Officer, Chief Financial Officer and Co-Chairman of the Board of Directors | | |
Gautham Pai | | | | | Co-Chairman of the Board of Directors | | |
Art Drogue | | | | | Independent Director | | |
Tom Clausen | | | 60 | | | Independent Director | |
Denis Tse | | | 46 | | | Independent Director | |
Sergio Pedreiro | | | | | Independent Director | |
| Assuming No Redemptions | | | Assuming 25% Redemptions | | | Assuming 50% Redemptions | | | Assuming 75% Redemptions | | | Assuming Maximum Redemptions(1) | | |||||||||||||||
| Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a% of GACQ IPO Proceeds (net of Redemptions) | |
| 18,263,000 | | | 4.50% | | | 13,397,250 | | | 6.13% | | | 9,131,500 | | | 9.00% | | | 4,565,750 | | | 10.80% | | | 0 | | | 100% | |
Name | | | Age | | | Position(s) | |
Sean Peters | | | | | Chief Executive Officer | | |
Sergio Pedreiro | | | | | Chief Financial Officer and Director | | |
Rohan Ajila | | | | | Director | | |
Gautham Pai | | | | | Director | | |
Art Drogue | | | | | Director | | |
Tom Clausen | | | 60 | | | Director | |
Dennis Tse | | | 46 | | | Director | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 51,751 | | | | | $ | 72,746 | | | | | $ | (20,995) | | | | | | -28.9% | | |
Gross profit | | | | | 16,081 | | | | | | 22,747 | | | | | | (6,665) | | | | | | -29.3% | | |
Gross margin | | | | | 31.1% | | | | | | 31.3% | | | | | | | | | | | | | | |
Operating expenses | | | | | 17,844 | | | | | | 22,694 | | | | | | (4,850) | | | | | | -21.4% | | |
Income (loss) from operations before other income (expense) | | | | | (1,763) | | | | | | 53 | | | | | | (1,815) | | | | | | -3,490.4% | | |
Operating margin | | | | | -3.4% | | | | | | 0.1% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (1,747) | | | | | | (1,631) | | | | | | (116) | | | | | | -7.1% | | |
Foreign exchange gain (loss) | | | | | 17 | | | | | | (122) | | | | | | 139 | | | | | | 113.9% | | |
Other income (expense) | | | | | 12 | | | | | | (32) | | | | | | 44 | | | | | | 137.5% | | |
Income (loss) before income taxes | | | | | (3,481) | | | | | | (1,732) | | | | | | (1,747) | | | | | | -100.8% | | |
Income tax provision | | | | | (33) | | | | | | (15) | | | | | | (18) | | | | | | -120.0% | | |
Effective tax rate | | | | | 1% | | | | | | 1% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (3,448) | | | | | | (1,718) | | | | | | (1,729) | | | | | | -101.9% | | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 51,751 | | | | | $ | 72,746 | | | | | $ | (20,995) | | | | | | -28.9% | | |
Gross profit | | | | | 16,081 | | | | | | 22,747 | | | | | | (6,665) | | | | | | -29.3% | | |
Gross margin | | | | | 31.1% | | | | | | 31.3% | | | | | | | | | | | | | | |
Operating expenses | | | | | 17,844 | | | | | | 22,694 | | | | | | (4,850) | | | | | | -21.4% | | |
Income (loss) from operations before other income (expense) | | | | | (1,763) | | | | | | 53 | | | | | | (1,815) | | | | | | -3,490.4% | | |
Operating margin | | | | | -3.4% | | | | | | 0.1% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (1,747) | | | | | | (1,631) | | | | | | (116) | | | | | | -7.1% | | |
Foreign exchange gain (loss) | | | | | 17 | | | | | | (122) | | | | | | 139 | | | | | | 113.9% | | |
Other income (expense) | | | | | 12 | | | | | | (32) | | | | | | 44 | | | | | | 137.5% | | |
Income (loss) before income taxes | | | | | (3,481) | | | | | | (1,732) | | | | | | (1,747) | | | | | | -100.8% | | |
Income tax provision | | | | | (33) | | | | | | (15) | | | | | | (18) | | | | | | -120.0% | | |
Effective tax rate | | | | | 1% | | | | | | 1% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (3,448) | | | | | | (1,718) | | | | | | (1,729) | | | | | | -101.9% | | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Direct marketing expense | | | | $ | 7,356 | | | | | $ | 10,495 | | | | | $ | (3,139) | | | | | | -29.9% | | |
Selling and marketing | | | | | 2,721 | | | | | | 3,073 | | | | | | (352) | | | | | | -11.5% | | |
General and administration | | | | | 7,642 | | | | | | 9,048 | | | | | | (1,406) | | | | | | -15.5% | | |
Management fees | | | | | 125 | | | | | | 118 | | | | | | 7 | | | | | | 5.9% | | |
Restructuring expense | | | | | 0 | | | | | | (40) | | | | | | 40 | | | | | | 100.0% | | |
| | | Year Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 308,718 | | | | | $ | 334,679 | | | | | $ | (25,961) | | | | | | (7.8)% | | |
Gross profit | | | | | 98,763 | | | | | | 127,114 | | | | | | (28,351) | | | | | | (22.3)% | | |
Gross margin | | | | | 32.0% | | | | | | 38.0% | | | | | | | | | | | | | | |
Operating expenses | | | | | 92,443 | | | | | | 117,470 | | | | | | (25,027) | | | | | | (21.3)% | | |
Income from operations before other income (expense) | | | | | 6,320 | | | | | | 9,644 | | | | | | (3,324) | | | | | | (34.5)% | | |
Operating margin | | | | | 2.0% | | | | | | 2.9% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (5,650) | | | | | | (5,880) | | | | | | 230 | | | | | | (3.9)% | | |
Foreign exchange gain (loss) | | | | | (1,057) | | | | | | 1,126 | | | | | | (2,183) | | | | | | (193.9)% | | |
Other income (expense) | | | | | 112 | | | | | | (243) | | | | | | 355 | | | | | | (146.1)% | | |
Income (loss) before income tax expense | | | | | (275) | | | | | | 4,647 | | | | | | (4,922) | | | | | | (105.9)% | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 1,254 | | | | | | 289.6% | | |
Effective tax rate | | | | | (329.5)% | | | | | | 9.6% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (6,176) | | | | | | (177.8)% | | |
| | | Years Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Direct marketing expense | | | | $ | 41,446 | | | | | $ | 57,245 | | | | | $ | (15,799) | | | | | | (27.6)% | | |
Selling and marketing | | | | | 13,471 | | | | | | 16,595 | | | | | | (3,124) | | | | | | (18.8)% | | |
General and administration | | | | | 36,949 | | | | | | 35,560 | | | | | | 1,389 | | | | | | 3.9% | | |
Management fees | | | | | 502 | | | | | | 798 | | | | | | (296) | | | | | | (37.1)% | | |
Restructuring expense | | | | | 75 | | | | | | 7,272 | | | | | | (7,197) | | | | | | (99.0)% | | |
| | | Year Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Net Sales | | | | $ | 334,679 | | | | | $ | 324,213 | | | | | $ | 10,465 | | | | | | 3.2% | | |
Gross profit | | | | | 127,114 | | | | | | 124,986 | | | | | | 2,127 | | | | | | 1.7% | | |
Gross margin | | | | | 38.0% | | | | | | 38.6% | | | | | | | | | | | | | | |
Operating expenses | | | | | 117,470 | | | | | | 176,951 | | | | | | (59,481) | | | | | | -33.6% | | |
Income from operations before other income (expense) | | | | | 9,644 | | | | | | (51,965) | | | | | | 61,609 | | | | | | -118.6% | | |
Operating margin | | | | | 2.9% | | | | | | -16.0% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (5,880) | | | | | | (6,734) | | | | | | 853 | | | | | | -12.7% | | |
Foreign exchange gain (loss) | | | | | 1,126 | | | | | | (890) | | | | | | 2,016 | | | | | | -226.5% | | |
Other income (expense) | | | | | (243) | | | | | | 161 | | | | | | (404) | | | | | | -250.9% | | |
Income before income taxes | | | | | 4,647 | | | | | | (59,428) | | | | | | 64,075 | | | | | | -107.8% | | |
Income tax provision | | | | | 433 | | | | | | 95 | | | | | | 338 | | | | | | 355.4% | | |
Effective tax rate | | | | | 9.6% | | | | | | 0.2% | | | | | | | | | | | | | | |
Net income | | | | | 4,214 | | | | | | (59,523) | | | | | | 63,586 | | | | | | -106.8% | | |
| | | Years Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Direct marketing expense | | | | $ | 57,245 | | | | | $ | 64,806 | | | | | $ | (7,561) | | | | | | -11.7% | | |
Selling and marketing | | | | | 16,595 | | | | | | 21,448 | | | | | | (4,853) | | | | | | -22.6% | | |
General and administration | | | | | 35,560 | | | | | | 40,940 | | | | | | (5,380) | | | | | | -13.1% | | |
Management fees | | | | | 798 | | | | | | 1,039 | | | | | | (241) | | | | | | -23.2% | | |
Restructuring expense | | | | | 7,272 | | | | | | — | | | | | | 7,272 | | | | | | 100.0% | | |
Intangible impairment | | | | | — | | | | | | 4,285 | | | | | | (4,285) | | | | | | -100.0% | | |
Goodwill impairment | | | | | — | | | | | | 44,433 | | | | | | (44,433) | | | | | | -100.0% | | |
| | | May 31, | | | February 28, | | ||||||
| | | 2022 | | | 2022 | | ||||||
| | | (in thousands) | | |||||||||
5.36% term note | | | | $ | 11,287 | | | | | $ | 11,355 | | |
Term note payable A | | | | | 9,987 | | | | | | 10,050 | | |
Term note payable B | | | | | 10,949 | | | | | | 10,949 | | |
Revolver – (European) | | | | | 2,004 | | | | | | 1,862 | | |
Revolver – (US) | | | | | 36,259 | | | | | | 34,779 | | |
Covid Relief | | | | | 436 | | | | | | 491 | | |
| | | | | 70,922 | | | | | | 69,486 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees | | | | | (1,089) | | | | | | (1,255) | | |
Current maturities – long-term debt | | | | | (58,516) | | | | | | (941) | | |
| | | | $ | 11,317 | | | | | $ | 67,290 | | |
| | | Period ended May 31, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | 641 | | | | | $ | (5,626) | | | | | $ | 6,267 | | |
Net cash provided by (used in) investing activities | | | | | (714) | | | | | | (834) | | | | | | 120 | | |
Net cash provided by (used in) financing activities | | | | | 735 | | | | | | 5,180 | | | | | | (4,445) | | |
| | | Years Ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | (9,147) | | | | | $ | 25,690 | | | | | $ | (34,837) | | |
Net cash provided by (used in) investing activities | | | | | (3,370) | | | | | | (4,125) | | | | | | 755 | | |
Net cash provided by (used in) financing activities | | | | | 11,812 | | | | | | (21,598) | | | | | | 33,410 | | |
| | | Years Ended February 28, | | |||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | 25,689 | | | | | | (5,513) | | | | | | 31,202 | | |
Net cash (used in) investing activities | | | | | (4,125) | | | | | | (1,831) | | | | | | (2,294) | | |
Net cash provided by (used in) financing activities | | | | | (21,598) | | | | | | 2,329 | | | | | | (23,927) | | |
| | | For the three months ended May 31, | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | ||||||
Net Income (Loss) | | | | | (3,447) | | | | | | (500) | | |
Income tax provision | | | | | (33) | | | | | | (1,233) | | |
Interest expense, net | | | | | 1,747 | | | | | | 1,631 | | |
Depreciation & Amortization | | | | | 2,367 | | | | | | 1,750 | | |
EBITDA | | | | | 634 | | | | | | 1,648 | | |
Management fees(1) | | | | | 125 | | | | | | 118 | | |
PartyLite restructuring(2) | | | | | — | | | | | | 61 | | |
COVID-19 non-recurring legal and other costs(3) | | | | | — | | | | | | 5 | | |
Unconsummated refinancing costs(4) | | | | | — | | | | | | 542 | | |
Triad deal costs(5) | | | | | 929 | | | | | | — | | |
Adjusted EBITDA | | | | | 1,688 | | | | | $ | 2,374 | | |
| | | For the year ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Net Income (Loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (59,523) | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 95 | | |
Interest expense, net | | | | | 5,650 | | | | | | 5,880 | | | | | | 6,734 | | |
Depreciation & Amortization | | | | | 7,045 | | | | | | 7,065 | | | | | | 6,799 | | |
EBITDA | | | | | 12,420 | | | | | | 17,592 | | | | | | (45,895) | | |
Management fees(1) | | | | | 502 | | | | | | 798 | | | | | | 1,039 | | |
Goodwill impairment(2) | | | | | — | | | | | | — | | | | | | 44,433 | | |
Intangible asset impairment(3) | | | | | — | | | | | | — | | | | | | 4,285 | | |
PPP grant income(4) | | | | | — | | | | | | (8,479) | | | | | | — | | |
PartyLite restructuring(5) | | | | | 75 | | | | | | 8,826 | | | | | | — | | |
One-time customer costs(6) | | | | | — | | | | | | — | | | | | | 1,000 | | |
COVID-19 non-recurring legal and other costs(7) | | | | | 22 | | | | | | 254 | | | | | | — | | |
Unconsummated refinancing costs(8) | | | | | 370 | | | | | | 560 | | | | | | 199 | | |
Unconsummated sale of company(9) | | | | | — | | | | | | 87 | | | | | | 356 | | |
Project Aurora(10) | | | | | — | | | | | | 23 | | | | | | 325 | | |
Project Revolution(11) | | | | | — | | | | | | 45 | | | | | | 183 | | |
eComm startup costs(12) | | | | | 165 | | | | | | — | | | | | | — | | |
Triad deal costs(13) | | | | | 2,707 | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | 16,260 | | | | | $ | 19,707 | | | | | $ | 5,924 | | |
| | | For the fiscal year ended | | |||||||||
(in USD thousands) | | | March 31, 2021 | | | March 31, 2020 | | ||||||
North America | | | | $ | 90,614 | | | | | $ | 129,252 | | |
India | | | | $ | 22,437 | | | | | $ | 13,006 | | |
Europe | | | | $ | 6,647 | | | | | $ | 3,383 | | |
Australia | | | | $ | 4,937 | | | | | $ | 4,654 | | |
Rest of the World | | | | $ | 766 | | | | | $ | 4,272 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Air Fresheners (non-solid) | | | | | 71 | | | | | | 14% | | | | | | 29 | | |
Deodorants | | | | | 571 | | | | | | 7% | | | | | | 143-157 | | |
Shampoo | | | | | 957 | | | | | | 5% | | | | | | 129-157 | | |
Hand Sanitizers | | | | | 314 | | | | | | * | | | | | | 50-57 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Other Personal Care and health & Hygiene category | | | | | 429 | | | | | | 7% | | | | | | 50-57 | | |
Disinfectant Spray | | | | | 214 | | | | | | * | | | | | | 57-64 | | |
Sub-total | | | | $ | 2,557 | | | | | | | | | | | $ | 458-$522 | | |
| | | For the three months ended May 31, | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | ||||||
Net Income (Loss) | | | | | (3,447) | | | | | | (500) | | |
Income tax provision | | | | | (33) | | | | | | (1,233) | | |
Interest expense, net | | | | | 1,747 | | | | | | 1,631 | | |
Depreciation & Amortization | | | | | 2,367 | | | | | | 1,750 | | |
EBITDA | | | | | 634 | | | | | | 1,648 | | |
Management fees(1) | | | | | 125 | | | | | | 118 | | |
PartyLite restructuring(2) | | | | | — | | | | | | 61 | | |
COVID-19 non-recurring legal and other costs(3) | | | | | — | | | | | | 5 | | |
Unconsummated refinancing costs(4) | | | | | — | | | | | | 542 | | |
Triad deal costs(5) | | | | | 929 | | | | | | — | | |
Adjusted EBITDA | | | | | 1,688 | | | | | $ | 2,374 | | |
Particulars (in USD thousands) | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Revenues | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Cost of revenue | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross Profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Selling, general & administrative expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Depreciation & amortization | | | | | 639 | | | | | | 687 | | | | | | -47 | | | | | | -7% | | |
Total operating expenses | | | | | 6,540 | | | | | | 8,356 | | | | | | -1,816 | | | | | | -22% | | |
Operating Income (Loss) | | | | | 150 | | | | | | -2,183 | | | | | | 2,333 | | | | | | -107% | | |
Interest Income | | | | | -61 | | | | | | -61 | | | | | | 0 | | | | | | 0% | | |
Interest Expenses | | | | | 2,845 | | | | | | 878 | | | | | | 1,967 | | | | | | 224% | | |
Other Income, net | | | | | -247 | | | | | | -4,592 | | | | | | 4,345 | | | | | | -95% | | |
Total Other Expenses | | | | | -2,537 | | | | | | 3,775 | | | | | | -6,313 | | | | | | -167% | | |
Profit/ (Loss) before income taxes | | | | | -2,387 | | | | | | 1,592 | | | | | | -3,980 | | | | | | -250% | | |
Income tax expense including deferred taxes | | | | | 577 | | | | | | -268 | | | | | | 845 | | | | | | -315% | | |
Net income / (loss) | | | | | -2,964 | | | | | | 1,860 | | | | | | -4,825 | | | | | | -259% | | |
Share of (profit)/loss on equity accounted investment | | | | | 24 | | | | | | -366 | | | | | | 390 | | | | | | -106% | | |
Net loss attributable to noncontrolling interests | | | | | -99 | | | | | | 231 | | | | | | -331 | | | | | | -143% | | |
Cumulative translation adjustments | | | | | 1161 | | | | | | 140 | | | | | | 1,020 | | | | | | 728% | | |
Total comprehensive income/ (loss) | | | | | -1,827 | | | | | | 2,367 | | | | | | -4,194 | | | | | | -177% | | |
| | | For the year ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Net Income (Loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (59,523) | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 95 | | |
Interest expense, net | | | | | 5,650 | | | | | | 5,880 | | | | | | 6,734 | | |
Depreciation & Amortization | | | | | 7,045 | | | | | | 7,065 | | | | | | 6,799 | | |
EBITDA | | | | | 12,420 | | | | | | 17,592 | | | | | | (45,895) | | |
Management fees(1) | | | | | 502 | | | | | | 798 | | | | | | 1,039 | | |
Goodwill impairment(2) | | | | | — | | | | | | — | | | | | | 44,433 | | |
Intangible asset impairment(3) | | | | | — | | | | | | — | | | | | | 4,285 | | |
PPP grant income(4) | | | | | — | | | | | | (8,479) | | | | | | — | | |
PartyLite restructuring(5) | | | | | 75 | | | | | | 8,826 | | | | | | — | | |
One-time customer costs(6) | | | | | — | | | | | | — | | | | | | 1,000 | | |
COVID-19 non-recurring legal and other costs(7) | | | | | 22 | | | | | | 254 | | | | | | — | | |
Unconsummated refinancing costs(8) | | | | | 370 | | | | | | 560 | | | | | | 199 | | |
Unconsummated sale of company(9) | | | | | — | | | | | | 87 | | | | | | 356 | | |
Project Aurora(10) | | | | | — | | | | | | 23 | | | | | | 325 | | |
Project Revolution(11) | | | | | — | | | | | | 45 | | | | | | 183 | | |
eComm startup costs(12) | | | | | 165 | | | | | | — | | | | | | — | | |
Triad deal costs(13) | | | | | 2,707 | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | 16,260 | | | | | $ | 19,707 | | | | | $ | 5,924 | | |
Revenue by Geographical Location | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
USA | | | | | 18,676 | | | | | | 12,030 | | | | | | 6,647 | | | | | | 55% | | |
India | | | | | 5,018 | | | | | | 5,846 | | | | | | -828 | | | | | | -14% | | |
Australia | | | | | 1,337 | | | | | | 1,173 | | | | | | 164 | | | | | | 14% | | |
UK | | | | | 1,822 | | | | | | 2,251 | | | | | | -429 | | | | | | -19% | | |
Other Countries | | | | | 1,762 | | | | | | 1,054 | | | | | | 708 | | | | | | 67% | | |
Total Revenue | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Total cost of revenues | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Selling, general and administration expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Particulars (in USD thousands) | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Cost of revenue | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross Profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Selling, general & administrative expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
Depreciation & amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | -236 | | | | | | -9% | | |
Total operating expenses | | | | | 29,907 | | | | | | 28,732 | | | | | | 1,175 | | | | | | 4% | | |
Operating Income (Loss) | | | | | -4,738 | | | | | | -2,657 | | | | | | -2,081 | | | | | | 78% | | |
Interest Income | | | | | -242 | | | | | | -211 | | | | | | -31 | | | | | | 15% | | |
Interest Expenses | | | | | 9,915 | | | | | | 11,070 | | | | | | -1,155 | | | | | | -10% | | |
Other Income, net | | | | | -6,985 | | | | | | -1,351 | | | | | | -5,634 | | | | | | 417% | | |
Total Other Expenses | | | | | -2,688 | | | | | | -9,508 | | | | | | 6,820 | | | | | | -72% | | |
Profit/ (Loss) before income taxes | | | | | -7,426 | | | | | | -12,165 | | | | | | 4,739 | | | | | | -39% | | |
Income tax expense including deferred taxes | | | | | -343 | | | | | | 365 | | | | | | -708 | | | | | | -194% | | |
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | 5,447 | | | | | | -43% | | |
Share of (profit)/loss on equity accounted investment | | | | | -1,710 | | | | | | -1419 | | | | | | -291 | | | | | | 20% | | |
Net loss attributable to noncontrolling interests | | | | | -223 | | | | | | -719 | | | | | | 496 | | | | | | -69% | | |
Cumulative translation adjustments | | | | | 452 | | | | | | -226 | | | | | | 678 | | | | | | -300% | | |
Total comprehensive income/ (loss) | | | | | -4,922 | | | | | | -11,337 | | | | | | 6,415 | | | | | | -57% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 61,208 | | | | | | 90,614 | | | | | | -29,406 | | | | | | -32% | | |
India | | | | | 21,312 | | | | | | 22,437 | | | | | | -1,125 | | | | | | -5% | | |
UK | | | | | 8,728 | | | | | | 6,647 | | | | | | 2,081 | | | | | | 31% | | |
Australia | | | | | 5,226 | | | | | | 4,937 | | | | | | 289 | | | | | | 6% | | |
Other Countries | | | | | 6,594 | | | | | | 766 | | | | | | 5,828 | | | | | | 761% | | |
Total Revenue | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Total cost of revenues | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Selling, general and administration expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,166) | | | | | | (19)% | | |
Cost of revenue | | | | | 99,327 | | | | | | 133,313 | | | | | | (33,986) | | | | | | (25)% | | |
Gross Profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
Selling, general & administrative expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Depreciation & amortization | | | | | 2,764 | | | | | | 2,730 | | | | | | 34 | | | | | | 1% | | |
Total operating expenses | | | | | 28,732 | | | | | | 44,353 | | | | | | (15,621) | | | | | | (35)% | | |
Operating Income (Loss) | | | | | (2,657) | | | | | | (23,098) | | | | | | 20,441 | | | | | | (88)% | | |
Interest Income | | | | | (211) | | | | | | (323) | | | | | | 112 | | | | | | (35)% | | |
Interest Expenses | | | | | 11,070 | | | | | | 13,280 | | | | | | (2,210) | | | | | | (17)% | | |
Other Income, net | | | | | (1,351) | | | | | | (3,469) | | | | | | 2,118 | | | | | | (61)% | | |
Total Other Expenses | | | | | _(9,508) | | | | | | (9,488) | | | | | | (20) | | | | | | 0% | | |
Profit/ (Loss) before income taxes | | | | | (12,165) | | | | | | (32,586) | | | | | | 20,420 | | | | | | (63)% | | |
Income tax expense including deferred taxes | | | | | 365 | | | | | | 285 | | | | | | 79 | | | | | | 28% | | |
Net income / (loss) | | | | | (12,530) | | | | | | (32,871) | | | | | | 20,341 | | | | | | (62)% | | |
Share of (profit)/loss on equity accounted investment | | | | | (1,419) | | | | | | (38) | | | | | | (1,381) | | | | | | 3594% | | |
Net loss attributable to noncontrolling interests | | | | | (719) | | | | | | (2,241) | | | | | | 1,522 | | | | | | (68)% | | |
Cumulative translation adjustments | | | | | (226) | | | | | | 513 | | | | | | (739) | | | | | | (144)% | | |
Total comprehensive income/ (loss) | | | | | (11,337) | | | | | | (32,320) | | | | | | 20,983 | | | | | | (65)% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 90,614 | | | | | | 129,253 | | | | | | (38,638) | | | | | | (30)% | | |
India | | | | | 22,437 | | | | | | 13,006 | | | | | | 9,431 | | | | | | 73% | | |
UK | | | | | 6,647 | | | | | | 3,383 | | | | | | 3,264 | | | | | | 96% | | |
Australia | | | | | 4,937 | | | | | | 4,654 | | | | | | 283 | | | | | | 6% | | |
Other Countries | | | | | 766 | | | | | | 4,272 | | | | | | (3,505) | | | | | | (82)% | | |
Total Revenue | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,144) | | | | | | (19)% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Cost of revenues | | | | | 95,815 | | | | | | 114,224 | | | | | | (18,409) | | | | | | (16)% | | |
Exceptional items | | | | | 3,512 | | | | | | 19,093 | | | | | | (15,581) | | | | | | (82)% | | |
Total cost of revenues | | | | | 99,327 | | | | | | 133,317 | | | | | | (33,990) | | | | | | (25)% | | |
Gross profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Selling, general & administration expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
| | | For the fiscal year ended | | |||||||||
(in USD thousands) | | | March 31, 2021 | | | March 31, 2020 | | ||||||
North America | | | | $ | 90,614 | | | | | $ | 129,252 | | |
India | | | | $ | 22,437 | | | | | $ | 13,006 | | |
Europe | | | | $ | 6,647 | | | | | $ | 3,383 | | |
Australia | | | | $ | 4,937 | | | | | $ | 4,654 | | |
Rest of the World | | | | $ | 766 | | | | | $ | 4,272 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Air Fresheners (non-solid) | | | | | 71 | | | | | | 14% | | | | | | 29 | | |
Deodorants | | | | | 571 | | | | | | 7% | | | | | | 143-157 | | |
Shampoo | | | | | 957 | | | | | | 5% | | | | | | 129-157 | | |
Hand Sanitizers | | | | | 314 | | | | | | * | | | | | | 50-57 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Other Personal Care and health & Hygiene category | | | | | 429 | | | | | | 7% | | | | | | 50-57 | | |
Disinfectant Spray | | | | | 214 | | | | | | * | | | | | | 57-64 | | |
Sub-total | | | | $ | 2,557 | | | | | | | | | | | $ | 458-$522 | | |
| | | For the three months ended May 31, | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | ||||||
Net Income (Loss) | | | | | (3,447) | | | | | | (500) | | |
Income tax provision | | | | | (33) | | | | | | (1,233) | | |
Interest expense, net | | | | | 1,747 | | | | | | 1,631 | | |
Depreciation & Amortization | | | | | 2,367 | | | | | | 1,750 | | |
EBITDA | | | | | 634 | | | | | | 1,648 | | |
Management fees(1) | | | | | 125 | | | | | | 118 | | |
PartyLite restructuring(2) | | | | | — | | | | | | 61 | | |
COVID-19 non-recurring legal and other costs(3) | | | | | — | | | | | | 5 | | |
Unconsummated refinancing costs(4) | | | | | — | | | | | | 542 | | |
Triad deal costs(5) | | | | | 929 | | | | | | — | | |
Adjusted EBITDA | | | | | 1,688 | | | | | $ | 2,374 | | |
| | | For the year ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Net Income (Loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (59,523) | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 95 | | |
Interest expense, net | | | | | 5,650 | | | | | | 5,880 | | | | | | 6,734 | | |
Depreciation & Amortization | | | | | 7,045 | | | | | | 7,065 | | | | | | 6,799 | | |
EBITDA | | | | | 12,420 | | | | | | 17,592 | | | | | | (45,895) | | |
Management fees(1) | | | | | 502 | | | | | | 798 | | | | | | 1,039 | | |
Goodwill impairment(2) | | | | | — | | | | | | — | | | | | | 44,433 | | |
Intangible asset impairment(3) | | | | | — | | | | | | — | | | | | | 4,285 | | |
PPP grant income(4) | | | | | — | | | | | | (8,479) | | | | | | — | | |
PartyLite restructuring(5) | | | | | 75 | | | | | | 8,826 | | | | | | — | | |
One-time customer costs(6) | | | | | — | | | | | | — | | | | | | 1,000 | | |
COVID-19 non-recurring legal and other costs(7) | | | | | 22 | | | | | | 254 | | | | | | — | | |
Unconsummated refinancing costs(8) | | | | | 370 | | | | | | 560 | | | | | | 199 | | |
Unconsummated sale of company(9) | | | | | — | | | | | | 87 | | | | | | 356 | | |
Project Aurora(10) | | | | | — | | | | | | 23 | | | | | | 325 | | |
Project Revolution(11) | | | | | — | | | | | | 45 | | | | | | 183 | | |
eComm startup costs(12) | | | | | 165 | | | | | | — | | | | | | — | | |
Triad deal costs(13) | | | | | 2,707 | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | 16,260 | | | | | $ | 19,707 | | | | | $ | 5,924 | | |
| | | For the fiscal year ended | | |||||||||
(in USD thousands) | | | March 31, 2021 | | | March 31, 2020 | | ||||||
North America | | | | $ | 90,614 | | | | | $ | 129,252 | | |
India | | | | $ | 22,437 | | | | | $ | 13,006 | | |
Europe | | | | $ | 6,647 | | | | | $ | 3,383 | | |
Australia | | | | $ | 4,937 | | | | | $ | 4,654 | | |
Rest of the World | | | | $ | 766 | | | | | $ | 4,272 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Air Fresheners (non-solid) | | | | | 71 | | | | | | 14% | | | | | | 29 | | |
Deodorants | | | | | 571 | | | | | | 7% | | | | | | 143-157 | | |
Shampoo | | | | | 957 | | | | | | 5% | | | | | | 129-157 | | |
Hand Sanitizers | | | | | 314 | | | | | | * | | | | | | 50-57 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Other Personal Care and health & Hygiene category | | | | | 429 | | | | | | 7% | | | | | | 50-57 | | |
Disinfectant Spray | | | | | 214 | | | | | | * | | | | | | 57-64 | | |
Sub-total | | | | $ | 2,557 | | | | | | | | | | | $ | 458-$522 | | |
Particulars (in USD thousands) | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Revenues | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Cost of revenue | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross Profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Selling, general & administrative expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Depreciation & amortization | | | | | 639 | | | | | | 687 | | | | | | -47 | | | | | | -7% | | |
Total operating expenses | | | | | 6,540 | | | | | | 8,356 | | | | | | -1,816 | | | | | | -22% | | |
Operating Income (Loss) | | | | | 150 | | | | | | -2,183 | | | | | | 2,333 | | | | | | -107% | | |
Interest Income | | | | | -61 | | | | | | -61 | | | | | | 0 | | | | | | 0% | | |
Interest Expenses | | | | | 2,845 | | | | | | 878 | | | | | | 1,967 | | | | | | 224% | | |
Other Income, net | | | | | -247 | | | | | | -4,592 | | | | | | 4,345 | | | | | | -95% | | |
Total Other Expenses | | | | | -2,537 | | | | | | 3,775 | | | | | | -6,313 | | | | | | -167% | | |
Profit/ (Loss) before income taxes | | | | | -2,387 | | | | | | 1,592 | | | | | | -3,980 | | | | | | -250% | | |
Income tax expense including deferred taxes | | | | | 577 | | | | | | -268 | | | | | | 845 | | | | | | -315% | | |
Net income / (loss) | | | | | -2,964 | | | | | | 1,860 | | | | | | -4,825 | | | | | | -259% | | |
Share of (profit)/loss on equity accounted investment | | | | | 24 | | | | | | -366 | | | | | | 390 | | | | | | -106% | | |
Net loss attributable to noncontrolling interests | | | | | -99 | | | | | | 231 | | | | | | -331 | | | | | | -143% | | |
Cumulative translation adjustments | | | | | 1161 | | | | | | 140 | | | | | | 1,020 | | | | | | 728% | | |
Total comprehensive income/ (loss) | | | | | -1,827 | | | | | | 2,367 | | | | | | -4,194 | | | | | | -177% | | |
Revenue by Geographical Location | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
USA | | | | | 18,676 | | | | | | 12,030 | | | | | | 6,647 | | | | | | 55% | | |
India | | | | | 5,018 | | | | | | 5,846 | | | | | | -828 | | | | | | -14% | | |
Australia | | | | | 1,337 | | | | | | 1,173 | | | | | | 164 | | | | | | 14% | | |
UK | | | | | 1,822 | | | | | | 2,251 | | | | | | -429 | | | | | | -19% | | |
Other Countries | | | | | 1,762 | | | | | | 1,054 | | | | | | 708 | | | | | | 67% | | |
Total Revenue | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Total cost of revenues | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Selling, general and administration expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Particulars (in USD thousands) | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Cost of revenue | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross Profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Selling, general & administrative expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
Depreciation & amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | -236 | | | | | | -9% | | |
Total operating expenses | | | | | 29,907 | | | | | | 28,732 | | | | | | 1,175 | | | | | | 4% | | |
Operating Income (Loss) | | | | | -4,738 | | | | | | -2,657 | | | | | | -2,081 | | | | | | 78% | | |
Interest Income | | | | | -242 | | | | | | -211 | | | | | | -31 | | | | | | 15% | | |
Interest Expenses | | | | | 9,915 | | | | | | 11,070 | | | | | | -1,155 | | | | | | -10% | | |
Other Income, net | | | | | -6,985 | | | | | | -1,351 | | | | | | -5,634 | | | | | | 417% | | |
Total Other Expenses | | | | | -2,688 | | | | | | -9,508 | | | | | | 6,820 | | | | | | -72% | | |
Profit/ (Loss) before income taxes | | | | | -7,426 | | | | | | -12,165 | | | | | | 4,739 | | | | | | -39% | | |
Income tax expense including deferred taxes | | | | | -343 | | | | | | 365 | | | | | | -708 | | | | | | -194% | | |
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | 5,447 | | | | | | -43% | | |
Share of (profit)/loss on equity accounted investment | | | | | -1,710 | | | | | | -1419 | | | | | | -291 | | | | | | 20% | | |
Net loss attributable to noncontrolling interests | | | | | -223 | | | | | | -719 | | | | | | 496 | | | | | | -69% | | |
Cumulative translation adjustments | | | | | 452 | | | | | | -226 | | | | | | 678 | | | | | | -300% | | |
Total comprehensive income/ (loss) | | | | | -4,922 | | | | | | -11,337 | | | | | | 6,415 | | | | | | -57% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 61,208 | | | | | | 90,614 | | | | | | -29,406 | | | | | | -32% | | |
India | | | | | 21,312 | | | | | | 22,437 | | | | | | -1,125 | | | | | | -5% | | |
UK | | | | | 8,728 | | | | | | 6,647 | | | | | | 2,081 | | | | | | 31% | | |
Australia | | | | | 5,226 | | | | | | 4,937 | | | | | | 289 | | | | | | 6% | | |
Other Countries | | | | | 6,594 | | | | | | 766 | | | | | | 5,828 | | | | | | 761% | | |
Total Revenue | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Total cost of revenues | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Selling, general and administration expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,166) | | | | | | (19)% | | |
Cost of revenue | | | | | 99,327 | | | | | | 133,313 | | | | | | (33,986) | | | | | | (25)% | | |
Gross Profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
Selling, general & administrative expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Depreciation & amortization | | | | | 2,764 | | | | | | 2,730 | | | | | | 34 | | | | | | 1% | | |
Total operating expenses | | | | | 28,732 | | | | | | 44,353 | | | | | | (15,621) | | | | | | (35)% | | |
Operating Income (Loss) | | | | | (2,657) | | | | | | (23,098) | | | | | | 20,441 | | | | | | (88)% | | |
Interest Income | | | | | (211) | | | | | | (323) | | | | | | 112 | | | | | | (35)% | | |
Interest Expenses | | | | | 11,070 | | | | | | 13,280 | | | | | | (2,210) | | | | | | (17)% | | |
Other Income, net | | | | | (1,351) | | | | | | (3,469) | | | | | | 2,118 | | | | | | (61)% | | |
Total Other Expenses | | | | | _(9,508) | | | | | | (9,488) | | | | | | (20) | | | | | | 0% | | |
Profit/ (Loss) before income taxes | | | | | (12,165) | | | | | | (32,586) | | | | | | 20,420 | | | | | | (63)% | | |
Income tax expense including deferred taxes | | | | | 365 | | | | | | 285 | | | | | | 79 | | | | | | 28% | | |
Net income / (loss) | | | | | (12,530) | | | | | | (32,871) | | | | | | 20,341 | | | | | | (62)% | | |
Share of (profit)/loss on equity accounted investment | | | | | (1,419) | | | | | | (38) | | | | | | (1,381) | | | | | | 3594% | | |
Net loss attributable to noncontrolling interests | | | | | (719) | | | | | | (2,241) | | | | | | 1,522 | | | | | | (68)% | | |
Cumulative translation adjustments | | | | | (226) | | | | | | 513 | | | | | | (739) | | | | | | (144)% | | |
Total comprehensive income/ (loss) | | | | | (11,337) | | | | | | (32,320) | | | | | | 20,983 | | | | | | (65)% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 90,614 | | | | | | 129,253 | | | | | | (38,638) | | | | | | (30)% | | |
India | | | | | 22,437 | | | | | | 13,006 | | | | | | 9,431 | | | | | | 73% | | |
UK | | | | | 6,647 | | | | | | 3,383 | | | | | | 3,264 | | | | | | 96% | | |
Australia | | | | | 4,937 | | | | | | 4,654 | | | | | | 283 | | | | | | 6% | | |
Other Countries | | | | | 766 | | | | | | 4,272 | | | | | | (3,505) | | | | | | (82)% | | |
Total Revenue | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,144) | | | | | | (19)% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Cost of revenues | | | | | 95,815 | | | | | | 114,224 | | | | | | (18,409) | | | | | | (16)% | | |
Exceptional items | | | | | 3,512 | | | | | | 19,093 | | | | | | (15,581) | | | | | | (82)% | | |
Total cost of revenues | | | | | 99,327 | | | | | | 133,317 | | | | | | (33,990) | | | | | | (25)% | | |
Gross profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Selling, general & administration expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Particulars | | | For the Fiscal Year Ended March 31 | | |||||||||||||||
| 2022 | | | 2021 | | | 2020 | | |||||||||||
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | -32,871 | | |
Tax Expense | | | | | -343 | | | | | | 365 | | | | | | 285 | | |
Interest Expense, Net | | | | | 9,672 | | | | | | 10,859 | | | | | | 12,958 | | |
Depreciation & Amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | 2,730 | | |
EBITDA | | | | | 4,775 | | | | | | 1,458 | | | | | | -16,898 | | |
Particulars | | | For the Fiscal Year Ended March | | | |||||||||||||||||
| 2022 | | | 2021 | | | 2020 | | | |||||||||||||
EBITDA | | | | | 4,775 | | | | | | 1,458 | | | | | | -16,898 | | | | ||
Supply chain disruption, demurrage & Customer Chargebacks(1) | | | | | 2,140 | | | | | | 4,396 | | | | | | 19,093 | | | | ||
Covid-19 induced operating expenses in MVP Group(2) | | | | | — | | | | | | 718 | | | | | | | | | | ||
One-time information technology and other expenses(3) | | | | | — | | | | | | 90 | | | | | | | | | | ||
One-time legal & professional expenses in MVP and PIL(4) | | | | | 1,706 | | | | | | 191 | | | | | | 125 | | | | ||
Profit on sale of Fixed Asset(5) | | | | | -800 | | | | | | — | | | | | | | | | | ||
PPP grant income(6) | | | | | -4,368 | | | | | | — | | | | | | | | | | | |
Covid-19 impact expenses in operations in Primacy Industries(7) | | | | | 1,337 | | | | | | 400 | | | | | | 73 | | | | ||
Bank charges | | | | | 88 | | | | | | 71 | | | | | | 917 | | | | ||
Expenses on business right-sizing(8) | | | | | | | | | | | | | | | | | 906 | | | | ||
Adjusted EBITDA | | | | | 4,879 | | | | | | 7,325 | | | | | | 4,216 | | | |
Cash provided by (used in): | | | Three-month ended June 30 | | | Fiscal Years ended March 31 | | | | | ||||||||||||||||||||||||
| 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | | |||||||||||||||||||
Operating activities | | | | | -4,779 | | | | | | -1,056 | | | | | | -15,798 | | | | | | -202 | | | | | | 8,835 | | | | ||
Investing activities | | | | | -335 | | | | | | -240 | | | | | | 2,195 | | | | | | -141 | | | | | | -1,501 | | | | ||
Financing activities | | | | | 4,405 | | | | | | 1,663 | | | | | | 39,145 | | | | | | 108 | | | | | | -6,998 | | | |
As on June 30, 2022 | | | Operating lease payments | | |||
2023 | | | | | 198 | | |
2024 | | | | | 5 | | |
2025 | | | | | — | | |
2026 | | | | | — | | |
2027 | | | | | — | | |
Thereafter | | | | | — | | |
Less: Imputed cost | | | | | -12 | | |
Lease liability as on June 30, 2022 | | | | | 190 | | |
| | | Pre-Business Combination | | | Post-Business Combination | | | | ||||||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | | | |||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | | ||||||||||||||||||||||
Directors and Executive Officers of GACQ: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.74% | | | | | | 13,129,363 | | | | | | 99.55% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sergio Pedreiro | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | ||||
All Directors and Executive Officers of GACQ as a Group (6 Individuals) | | | | | 5,019,363 | | | | | | 21.56% | | | | | | 13,189,363 | | | | | | 41.93% | | | | | | 13,189,363 | | | | | | 100% | | | | | ||||
GACQ’s and the Combined Company 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Acquisition LLC(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
D. E. Shaw Valence Portfolios, L.L.C.(5) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Highbridge Capital Management, LLC(6) | | | | | 1,939,822 | | | | | | 8.33% | | | | | | 1,939,822 | | | | | | 6.17% | | | | | | — | | | | | | * | | | | | ||||
Boothbay Fund Management, LLC(7) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Polar Asset Management Partners, Inc.(9) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Yakira Capital Management, Inc.(10) | | | | | 1,426,855 | | | | | | 6.13% | | | | | | 1,426,855 | | | | | | 4.54% | | | | | | — | | | | | | * | | | | | ||||
ATW SPAC Management LLC(11) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Lighthouse Investment Partners, LLC(12) | | | | | 1,835,533 | | | | | | 7.88% | | | | | | 1,835,533 | | | | | | 5.84% | | | | | | — | | | | | | * | | | | | ||||
Karpus Management, Inc.(13) | | | | | 1,261,325 | | | | | | 5.42% | | | | | | 1,261,325 | | | | | | 4.01% | | | | | | — | | | | | | * | | | | | ||||
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.74% | | | | | | 13,129,363 | | | | | | 99.55% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sean Peters | | | | | — | | | | | | * | | | | | | — | | | | | | | | | | | | — | | | | | | * | | | | |
| | | Pre-Business Combination | | | Post-Business Combination | | | | ||||||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | | | |||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | | ||||||||||||||||||||||
Directors and Executive Officers of GACQ: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.75% | | | | | | 4,959,363 | | | | | | 35.88% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.80% | | | | | | 13,129,363 | | | | | | 99.56% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sergio Pedreiro | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | ||||
All Directors and Executive Officers of GACQ as a Group (6 Individuals) | | | | | 5,019,363 | | | | | | 21.56% | | | | | | 13,189,363 | | | | | | 41.99% | | | | | | 13,189,363 | | | | | | 100% | | | | | ||||
GACQ’s and the Combined Company 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Acquisition LLC(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.75% | | | | | | 4,959,363 | | | | | | 35.88% | | | | | ||||
D. E. Shaw Valence Portfolios, L.L.C.(5) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Highbridge Capital Management, LLC(6) | | | | | 1,939,822 | | | | | | 8.33% | | | | | | 1,939,822 | | | | | | 6.16% | | | | | | — | | | | | | * | | | | | ||||
Boothbay Fund Management, LLC(7) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Polar Asset Management Partners, Inc.(9) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Yakira Capital Management, Inc.(10) | | | | | 1,426,855 | | | | | | 6.13% | | | | | | 1,426,855 | | | | | | 4.53% | | | | | | — | | | | | | * | | | | | ||||
ATW SPAC Management LLC(11) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Lighthouse Investment Partners, LLC(12) | | | | | 1,835,533 | | | | | | 7.88% | | | | | | 1,835,533 | | | | | | 5.83% | | | | | | — | | | | | | * | | | | | ||||
Karpus Management, Inc.(13) | | | | | 1,261,325 | | | | | | 5.42% | | | | | | 1,261,325 | | | | | | 4.00% | | | | | | — | | | | | | * | | | | | ||||
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.75% | | | | | | 4,959,363 | | | | | | 35.88% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.80% | | | | | | 13,129,363 | | | | | | 99.56% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sean Peters | | | | | — | | | | | | * | | | | | | — | | | | | | | | | | | | — | | | | | | * | | | | |
| | Pre-Business Combination | | Post-Business Combination | | | Pre-Business Combination | | Post-Business Combination | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Common Stock | | Assuming No Redemptions | | Assuming 100% Redemptions | | | Common Stock | | Assuming No Redemptions | | Assuming 100% Redemptions | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | Number of Shares Beneficially Owned(2) | | % of Outstanding Shares of Common Stock | | Number of Shares Beneficially Owned | | % of Outstanding Shares of Common Stock | | Number of Shares Beneficially Owned | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned(2) | | % of Outstanding Shares of Common Stock | | Number of Shares Beneficially Owned | | % of Outstanding Shares of Common Stock | | Number of Shares Beneficially Owned | | % of Outstanding Shares of Common Stock | | ||||||||||||||||||||||||||||||||||||||||||||||||
Sergio Pedreiro | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
All Directors and Executive Officers of the Combined Company as a Group (7 Individuals) | | | | 5,019,363 | | | | | 21.56% | | | | | 13,189,363 | | | | | 41.99% | | | | | 13,189,363 | | | | | 100% | | | | | | 5,019,363 | | | | | 21.56% | | | | | 13,189,363 | | | | | 41.93% | | | | | 13,189,363 | | | | | 100% | | |
| Audited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| Unaudited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
| | | | | F-78 | | | |
| | | | | F-79 | | | |
| | | | | F-80 | | | |
| Unaudited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-105 | | | |
| | | | | F-106 | | | |
| | | | | F-107 | | | |
| | | | | F-108 | | | |
| | | | | F-109 | | | |
| Audited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-129 | | | |
| | | | | F-130 | | | |
| | | | | F-131 | | | |
| | | | | F-132 | | | |
| | | | | F-133 | | | |
| | | | | F-134 | | | |
| Audited Financial Statements of GP Global Limited | | | |||||
| | | | | F-170 | | | |
| | | | | F-171 | | | |
| | | | | F-172 | | | |
| | | | | F-173 | | |
| | | | | F-174 | | | |
| | | | | F-175 | | | |
| Unaudited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-203 | | | |
| | | | | F-204 | | | |
| | | | | F-205 | | | |
| | | | | F-206 | | | |
| | | | | F-207 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 257,271 | | | | | $ | — | | |
Prepaid expense | | | | | 80,169 | | | | | | — | | |
Total Current Assets | | | | | 337,440 | | | | | | — | | |
Cash and Marketable Securities held in Trust Account | | | | | 183,570,432 | | | | | | — | | |
Total Assets | | | | $ | 183,907,872 | | | | | $ | — | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accrued expense | | | | $ | 1,740,131 | | | | | $ | 478 | | |
Franchise tax payable | | | | | 113,648 | | | | | | — | | |
Total Current Liabilities | | | | | 1,853,779 | | | | | | 478 | | |
Warrant Liability | | | | | 5,773,748 | | | | | | — | | |
Deferred underwriting fees | | | | | 5,935,475 | | | | | | — | | |
Total Liabilities | | | | | 13,563,002 | | | | | | 478 | | |
Commitments and Contingencies (NOTE 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 and -0- shares at redemption value of $10.05 per share on December 31, 2021 and -0- on December 31, 2020, respectively | | | | | 183,570,432 | | | | | | — | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized; 5,019,363 and -0- issued and outstanding (excluding 18,263,000 and -0- shares subject to possible redemption) at December 31, 2021 and December 31, 2020, respectively | | | | | 502 | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (13,226,064) | | | | | | (478) | | |
Total Stockholders’ Deficit | | | | | (13,225,562) | | | | | | (478) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 183,907,872 | | | | | $ | — | | |
| | | Year Ended December 31, 2021 | | | For the Period from December 28, 2020 Through December 31, 2020 | | ||||||
Formation and operating costs | | | | $ | 2,327,118 | | | | | $ | 478 | | |
Franchise tax expense | | | | | 113,648 | | | | | | | | |
Loss from operation costs | | | | | (2,440,766) | | | | | | (478) | | |
Other income and expense: | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | $ | 27,282 | | | | | $ | — | | |
Change in fair value of warrant liability | | | | | 4,007,950 | | | | | | — | | |
Offering costs allocated to warrants | | | | | (450,846) | | | | | | — | | |
Net income (loss) | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Weighted average shares outstanding of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholder’s Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – December 28, 2020 (inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (478) | | | | | | (478) | | |
Balance – December 31, 2020 (audited) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (478) | | | | | $ | (478) | | |
Insurance of common stock to Sponsor | | | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,369,206) | | | | | | (18,690,549) | | |
Forfeiture of founder shares | | | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units | | | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | | | — | | | | | | 4,296,845 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,143,620 | | | | | | 1,143,620 | | |
Balance – December 31, 2021 | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,226,064) | | | | | $ | (13,225,562) | | |
| | | Year ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | — | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | | (27,282) | | | | | | — | | |
Change in fair value of warrant liability | | | | | (4,007,950) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 450,846 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | — | | |
Prepaid expenses | | | | | (80,169) | | | | | | — | | |
Accrued expenses | | | | | 1,739,653 | | | | | | 478 | | |
Franchise tax payable | | | | | 113,648 | | | | | | | | |
Net cash used in operating activities | | | | | (667,634) | | | | | | — | | |
| | | | | | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | — | | |
Investment of cash in Trust Account | | | | | (183,543,150) | | | | | | — | | |
Net cash used in investing activities | | | | | (183,543,150) | | | | | | — | | |
| | | | | | | | | | | — | | |
Cash flows from financing activities: | | | | | | | | | | | — | | |
Proceeds from issue of founder shares | | | | | 25,000 | | | | | | — | | |
Proceeds from sale of units, net underwriting discount paid | | | | | 180,347,125 | | | | | | — | | |
Proceeds from sale of private placement | | | | | 4,536,125 | | | | | | — | | |
Payment of offering costs | | | | | (440,195) | | | | | | — | | |
Net cash provided by financing activities | | | | | 184,468,055 | | | | | | — | | |
| | | | | | | | | | | — | | |
Net change in cash | | | | | 257,271 | | | | | | — | | |
Cash at beginning of period | | | | | — | | | | | | — | | |
Cash at end of period | | | | $ | 257,271 | | | | | $ | — | | |
| | | | | | | | | | | — | | |
Non-cash investing and financing activities: | | | | | | | | | | | — | | |
Initial classification of common stock subject to possible redemption | | | | $ | 164,909,883 | | | | | $ | — | | |
Re-measurement of Common Stock subject to redemption | | | | $ | 18,660,549 | | | | | $ | — | | |
Deferred underwriting fee payable | | | | $ | 5,935,475 | | | | | $ | — | | |
Initial measurement of public warrants and private placement warrants | | | | $ | 9,781,698 | | | | | $ | — | | |
| | | As of December 31, 2021 | | |||
Gross Proceeds | | | | $ | 182,630,000 | | |
Less: | | | | | | | |
Proceeds allocated to public warrants | | | | | (9,542,418) | | |
Transaction costs | | | | | (8,628,545) | | |
Plus: | | | | | | | |
Reverse the cost allocation to warrants | | | | | 450,846 | | |
Re-measurement of carrying value to redemption value | | | | | 18,690,549 | | |
Common stock subject to possible redemption | | | | | 183,570,432 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Denominator: weighted average number of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
| Assuming No Redemptions | | | Assuming 25% Redemptions | | | Assuming 50% Redemptions | | | Assuming 75% Redemptions | | | Assuming Maximum Redemptions(1) | | |||||||||||||||
| Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a% of GACQ IPO Proceeds (net of Redemptions) | |
| 18,263,000 | | | 4.50% | | | 13,397,250 | | | 6.13% | | | 9,131,500 | | | 9.00% | | | 4,565,750 | | | 10.80% | | | 0 | | | 100% | |
Name | | | Age | | | Position(s) | |
Sean Peters | | | 53 | | | Chief Executive Officer | |
Sergio Pedreiro | | | 57 | | | Chief Financial Officer and Director | |
Rohan Ajila | | | 55 | | | Director | |
Gautham Pai | | | 48 | | | Director | |
Art Drogue | | | 77 | | | Director | |
Tom Clausen | | | 60 | | | Director | |
Dennis Tse | | | 46 | | | Director | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 51,751 | | | | | $ | 72,746 | | | | | $ | (20,995) | | | | | | -28.9% | | |
Gross profit | | | | | 16,081 | | | | | | 22,747 | | | | | | (6,665) | | | | | | -29.3% | | |
Gross margin | | | | | 31.1% | | | | | | 31.3% | | | | | | | | | | | | | | |
Operating expenses | | | | | 17,844 | | | | | | 22,694 | | | | | | (4,850) | | | | | | -21.4% | | |
Income (loss) from operations before other income (expense) | | | | | (1,763) | | | | | | 53 | | | | | | (1,815) | | | | | | -3,490.4% | | |
Operating margin | | | | | -3.4% | | | | | | 0.1% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (1,747) | | | | | | (1,631) | | | | | | (116) | | | | | | -7.1% | | |
Foreign exchange gain (loss) | | | | | 17 | | | | | | (122) | | | | | | 139 | | | | | | 113.9% | | |
Other income (expense) | | | | | 12 | | | | | | (32) | | | | | | 44 | | | | | | 137.5% | | |
Income (loss) before income taxes | | | | | (3,481) | | | | | | (1,732) | | | | | | (1,747) | | | | | | -100.8% | | |
Income tax provision | | | | | (33) | | | | | | (15) | | | | | | (18) | | | | | | -120.0% | | |
Effective tax rate | | | | | 1% | | | | | | 1% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (3,448) | | | | | | (1,718) | | | | | | (1,729) | | | | | | -101.9% | | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Direct marketing expense | | | | $ | 7,356 | | | | | $ | 10,495 | | | | | $ | (3,139) | | | | | | -29.9% | | |
Selling and marketing | | | | | 2,721 | | | | | | 3,073 | | | | | | (352) | | | | | | -11.5% | | |
General and administration | | | | | 7,642 | | | | | | 9,048 | | | | | | (1,406) | | | | | | -15.5% | | |
Management fees | | | | | 125 | | | | | | 118 | | | | | | 7 | | | | | | 5.9% | | |
Restructuring expense | | | | | 0 | | | | | | (40) | | | | | | 40 | | | | | | 100.0% | | |
| | | Year Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 308,718 | | | | | $ | 334,679 | | | | | $ | (25,961) | | | | | | (7.8)% | | |
Gross profit | | | | | 98,763 | | | | | | 127,114 | | | | | | (28,351) | | | | | | (22.3)% | | |
Gross margin | | | | | 32.0% | | | | | | 38.0% | | | | | | | | | | | | | | |
Operating expenses | | | | | 92,443 | | | | | | 117,470 | | | | | | (25,027) | | | | | | (21.3)% | | |
Income from operations before other income (expense) | | | | | 6,320 | | | | | | 9,644 | | | | | | (3,324) | | | | | | (34.5)% | | |
Operating margin | | | | | 2.0% | | | | | | 2.9% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (5,650) | | | | | | (5,880) | | | | | | 230 | | | | | | (3.9)% | | |
Foreign exchange gain (loss) | | | | | (1,057) | | | | | | 1,126 | | | | | | (2,183) | | | | | | (193.9)% | | |
Other income (expense) | | | | | 112 | | | | | | (243) | | | | | | 355 | | | | | | (146.1)% | | |
Income (loss) before income tax expense | | | | | (275) | | | | | | 4,647 | | | | | | (4,922) | | | | | | (105.9)% | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 1,254 | | | | | | 289.6% | | |
Effective tax rate | | | | | (329.5)% | | | | | | 9.6% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (6,176) | | | | | | (177.8)% | | |
| | | Years Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Direct marketing expense | | | | $ | 41,446 | | | | | $ | 57,245 | | | | | $ | (15,799) | | | | | | (27.6)% | | |
Selling and marketing | | | | | 13,471 | | | | | | 16,595 | | | | | | (3,124) | | | | | | (18.8)% | | |
General and administration | | | | | 36,949 | | | | | | 35,560 | | | | | | 1,389 | | | | | | 3.9% | | |
Management fees | | | | | 502 | | | | | | 798 | | | | | | (296) | | | | | | (37.1)% | | |
Restructuring expense | | | | | 75 | | | | | | 7,272 | | | | | | (7,197) | | | | | | (99.0)% | | |
| | | Year Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Net Sales | | | | $ | 334,679 | | | | | $ | 324,213 | | | | | $ | 10,465 | | | | | | 3.2% | | |
Gross profit | | | | | 127,114 | | | | | | 124,986 | | | | | | 2,127 | | | | | | 1.7% | | |
Gross margin | | | | | 38.0% | | | | | | 38.6% | | | | | | | | | | | | | | |
Operating expenses | | | | | 117,470 | | | | | | 176,951 | | | | | | (59,481) | | | | | | -33.6% | | |
Income from operations before other income (expense) | | | | | 9,644 | | | | | | (51,965) | | | | | | 61,609 | | | | | | -118.6% | | |
Operating margin | | | | | 2.9% | | | | | | -16.0% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (5,880) | | | | | | (6,734) | | | | | | 853 | | | | | | -12.7% | | |
Foreign exchange gain (loss) | | | | | 1,126 | | | | | | (890) | | | | | | 2,016 | | | | | | -226.5% | | |
Other income (expense) | | | | | (243) | | | | | | 161 | | | | | | (404) | | | | | | -250.9% | | |
Income before income taxes | | | | | 4,647 | | | | | | (59,428) | | | | | | 64,075 | | | | | | -107.8% | | |
Income tax provision | | | | | 433 | | | | | | 95 | | | | | | 338 | | | | | | 355.4% | | |
Effective tax rate | | | | | 9.6% | | | | | | 0.2% | | | | | | | | | | | | | | |
Net income | | | | | 4,214 | | | | | | (59,523) | | | | | | 63,586 | | | | | | -106.8% | | |
| | | Years Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Direct marketing expense | | | | $ | 57,245 | | | | | $ | 64,806 | | | | | $ | (7,561) | | | | | | -11.7% | | |
Selling and marketing | | | | | 16,595 | | | | | | 21,448 | | | | | | (4,853) | | | | | | -22.6% | | |
General and administration | | | | | 35,560 | | | | | | 40,940 | | | | | | (5,380) | | | | | | -13.1% | | |
Management fees | | | | | 798 | | | | | | 1,039 | | | | | | (241) | | | | | | -23.2% | | |
Restructuring expense | | | | | 7,272 | | | | | | — | | | | | | 7,272 | | | | | | 100.0% | | |
Intangible impairment | | | | | — | | | | | | 4,285 | | | | | | (4,285) | | | | | | -100.0% | | |
Goodwill impairment | | | | | — | | | | | | 44,433 | | | | | | (44,433) | | | | | | -100.0% | | |
| | | May 31, | | | February 28, | | ||||||
| | | 2022 | | | 2022 | | ||||||
| | | (in thousands) | | |||||||||
5.36% term note | | | | $ | 11,287 | | | | | $ | 11,355 | | |
Term note payable A | | | | | 9,987 | | | | | | 10,050 | | |
Term note payable B | | | | | 10,949 | | | | | | 10,949 | | |
Revolver – (European) | | | | | 2,004 | | | | | | 1,862 | | |
Revolver – (US) | | | | | 36,259 | | | | | | 34,779 | | |
Covid Relief | | | | | 436 | | | | | | 491 | | |
| | | | | 70,922 | | | | | | 69,486 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees | | | | | (1,089) | | | | | | (1,255) | | |
Current maturities – long-term debt | | | | | (58,516) | | | | | | (941) | | |
| | | | $ | 11,317 | | | | | $ | 67,290 | | |
| | | Period ended May 31, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | 641 | | | | | $ | (5,626) | | | | | $ | 6,267 | | |
Net cash provided by (used in) investing activities | | | | | (714) | | | | | | (834) | | | | | | 120 | | |
Net cash provided by (used in) financing activities | | | | | 735 | | | | | | 5,180 | | | | | | (4,445) | | |
| | | Years Ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | (9,147) | | | | | $ | 25,690 | | | | | $ | (34,837) | | |
Net cash provided by (used in) investing activities | | | | | (3,370) | | | | | | (4,125) | | | | | | 755 | | |
Net cash provided by (used in) financing activities | | | | | 11,812 | | | | | | (21,598) | | | | | | 33,410 | | |
| | | Years Ended February 28, | | |||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | 25,689 | | | | | | (5,513) | | | | | | 31,202 | | |
Net cash (used in) investing activities | | | | | (4,125) | | | | | | (1,831) | | | | | | (2,294) | | |
Net cash provided by (used in) financing activities | | | | | (21,598) | | | | | | 2,329 | | | | | | (23,927) | | |
| | | For the three months ended May 31, | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | ||||||
Net Income (Loss) | | | | | (3,447) | | | | | | (500) | | |
Income tax provision | | | | | (33) | | | | | | (1,233) | | |
Interest expense, net | | | | | 1,747 | | | | | | 1,631 | | |
Depreciation & Amortization | | | | | 2,367 | | | | | | 1,750 | | |
EBITDA | | | | | 634 | | | | | | 1,648 | | |
Management fees(1) | | | | | 125 | | | | | | 118 | | |
PartyLite restructuring(2) | | | | | — | | | | | | 61 | | |
COVID-19 non-recurring legal and other costs(3) | | | | | — | | | | | | 5 | | |
Unconsummated refinancing costs(4) | | | | | — | | | | | | 542 | | |
Triad deal costs(5) | | | | | 929 | | | | | | — | | |
Adjusted EBITDA | | | | | 1,688 | | | | | $ | 2,374 | | |
| | | For the year ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Net Income (Loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (59,523) | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 95 | | |
Interest expense, net | | | | | 5,650 | | | | | | 5,880 | | | | | | 6,734 | | |
Depreciation & Amortization | | | | | 7,045 | | | | | | 7,065 | | | | | | 6,799 | | |
EBITDA | | | | | 12,420 | | | | | | 17,592 | | | | | | (45,895) | | |
Management fees(1) | | | | | 502 | | | | | | 798 | | | | | | 1,039 | | |
Goodwill impairment(2) | | | | | — | | | | | | — | | | | | | 44,433 | | |
Intangible asset impairment(3) | | | | | — | | | | | | — | | | | | | 4,285 | | |
PPP grant income(4) | | | | | — | | | | | | (8,479) | | | | | | — | | |
PartyLite restructuring(5) | | | | | 75 | | | | | | 8,826 | | | | | | — | | |
One-time customer costs(6) | | | | | — | | | | | | — | | | | | | 1,000 | | |
COVID-19 non-recurring legal and other costs(7) | | | | | 22 | | | | | | 254 | | | | | | — | | |
Unconsummated refinancing costs(8) | | | | | 370 | | | | | | 560 | | | | | | 199 | | |
Unconsummated sale of company(9) | | | | | — | | | | | | 87 | | | | | | 356 | | |
Project Aurora(10) | | | | | — | | | | | | 23 | | | | | | 325 | | |
Project Revolution(11) | | | | | — | | | | | | 45 | | | | | | 183 | | |
eComm startup costs(12) | | | | | 165 | | | | | | — | | | | | | — | | |
Triad deal costs(13) | | | | | 2,707 | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | 16,260 | | | | | $ | 19,707 | | | | | $ | 5,924 | | |
| | | For the fiscal year ended | | |||||||||
(in USD thousands) | | | March 31, 2021 | | | March 31, 2020 | | ||||||
North America | | | | $ | 90,614 | | | | | $ | 129,252 | | |
India | | | | $ | 22,437 | | | | | $ | 13,006 | | |
Europe | | | | $ | 6,647 | | | | | $ | 3,383 | | |
Australia | | | | $ | 4,937 | | | | | $ | 4,654 | | |
Rest of the World | | | | $ | 766 | | | | | $ | 4,272 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Air Fresheners (non-solid) | | | | | 71 | | | | | | 14% | | | | | | 29 | | |
Deodorants | | | | | 571 | | | | | | 7% | | | | | | 143-157 | | |
Shampoo | | | | | 957 | | | | | | 5% | | | | | | 129-157 | | |
Hand Sanitizers | | | | | 314 | | | | | | * | | | | | | 50-57 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Other Personal Care and health & Hygiene category | | | | | 429 | | | | | | 7% | | | | | | 50-57 | | |
Disinfectant Spray | | | | | 214 | | | | | | * | | | | | | 57-64 | | |
Sub-total | | | | $ | 2,557 | | | | | | | | | | | $ | 458-$522 | | |
Particulars (in USD thousands) | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Revenues | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Cost of revenue | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross Profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Selling, general & administrative expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Depreciation & amortization | | | | | 639 | | | | | | 687 | | | | | | -47 | | | | | | -7% | | |
Total operating expenses | | | | | 6,540 | | | | | | 8,356 | | | | | | -1,816 | | | | | | -22% | | |
Operating Income (Loss) | | | | | 150 | | | | | | -2,183 | | | | | | 2,333 | | | | | | -107% | | |
Interest Income | | | | | -61 | | | | | | -61 | | | | | | 0 | | | | | | 0% | | |
Interest Expenses | | | | | 2,845 | | | | | | 878 | | | | | | 1,967 | | | | | | 224% | | |
Other Income, net | | | | | -247 | | | | | | -4,592 | | | | | | 4,345 | | | | | | -95% | | |
Total Other Expenses | | | | | -2,537 | | | | | | 3,775 | | | | | | -6,313 | | | | | | -167% | | |
Profit/ (Loss) before income taxes | | | | | -2,387 | | | | | | 1,592 | | | | | | -3,980 | | | | | | -250% | | |
Income tax expense including deferred taxes | | | | | 577 | | | | | | -268 | | | | | | 845 | | | | | | -315% | | |
Net income / (loss) | | | | | -2,964 | | | | | | 1,860 | | | | | | -4,825 | | | | | | -259% | | |
Share of (profit)/loss on equity accounted investment | | | | | 24 | | | | | | -366 | | | | | | 390 | | | | | | -106% | | |
Net loss attributable to noncontrolling interests | | | | | -99 | | | | | | 231 | | | | | | -331 | | | | | | -143% | | |
Cumulative translation adjustments | | | | | 1161 | | | | | | 140 | | | | | | 1,020 | | | | | | 728% | | |
Total comprehensive income/ (loss) | | | | | -1,827 | | | | | | 2,367 | | | | | | -4,194 | | | | | | -177% | | |
Revenue by Geographical Location | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
USA | | | | | 18,676 | | | | | | 12,030 | | | | | | 6,647 | | | | | | 55% | | |
India | | | | | 5,018 | | | | | | 5,846 | | | | | | -828 | | | | | | -14% | | |
Australia | | | | | 1,337 | | | | | | 1,173 | | | | | | 164 | | | | | | 14% | | |
UK | | | | | 1,822 | | | | | | 2,251 | | | | | | -429 | | | | | | -19% | | |
Other Countries | | | | | 1,762 | | | | | | 1,054 | | | | | | 708 | | | | | | 67% | | |
Total Revenue | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Total cost of revenues | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Selling, general and administration expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Particulars (in USD thousands) | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Cost of revenue | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross Profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Selling, general & administrative expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
Depreciation & amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | -236 | | | | | | -9% | | |
Total operating expenses | | | | | 29,907 | | | | | | 28,732 | | | | | | 1,175 | | | | | | 4% | | |
Operating Income (Loss) | | | | | -4,738 | | | | | | -2,657 | | | | | | -2,081 | | | | | | 78% | | |
Interest Income | | | | | -242 | | | | | | -211 | | | | | | -31 | | | | | | 15% | | |
Interest Expenses | | | | | 9,915 | | | | | | 11,070 | | | | | | -1,155 | | | | | | -10% | | |
Other Income, net | | | | | -6,985 | | | | | | -1,351 | | | | | | -5,634 | | | | | | 417% | | |
Total Other Expenses | | | | | -2,688 | | | | | | -9,508 | | | | | | 6,820 | | | | | | -72% | | |
Profit/ (Loss) before income taxes | | | | | -7,426 | | | | | | -12,165 | | | | | | 4,739 | | | | | | -39% | | |
Income tax expense including deferred taxes | | | | | -343 | | | | | | 365 | | | | | | -708 | | | | | | -194% | | |
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | 5,447 | | | | | | -43% | | |
Share of (profit)/loss on equity accounted investment | | | | | -1,710 | | | | | | -1419 | | | | | | -291 | | | | | | 20% | | |
Net loss attributable to noncontrolling interests | | | | | -223 | | | | | | -719 | | | | | | 496 | | | | | | -69% | | |
Cumulative translation adjustments | | | | | 452 | | | | | | -226 | | | | | | 678 | | | | | | -300% | | |
Total comprehensive income/ (loss) | | | | | -4,922 | | | | | | -11,337 | | | | | | 6,415 | | | | | | -57% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 61,208 | | | | | | 90,614 | | | | | | -29,406 | | | | | | -32% | | |
India | | | | | 21,312 | | | | | | 22,437 | | | | | | -1,125 | | | | | | -5% | | |
UK | | | | | 8,728 | | | | | | 6,647 | | | | | | 2,081 | | | | | | 31% | | |
Australia | | | | | 5,226 | | | | | | 4,937 | | | | | | 289 | | | | | | 6% | | |
Other Countries | | | | | 6,594 | | | | | | 766 | | | | | | 5,828 | | | | | | 761% | | |
Total Revenue | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Total cost of revenues | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Selling, general and administration expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,166) | | | | | | (19)% | | |
Cost of revenue | | | | | 99,327 | | | | | | 133,313 | | | | | | (33,986) | | | | | | (25)% | | |
Gross Profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
Selling, general & administrative expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Depreciation & amortization | | | | | 2,764 | | | | | | 2,730 | | | | | | 34 | | | | | | 1% | | |
Total operating expenses | | | | | 28,732 | | | | | | 44,353 | | | | | | (15,621) | | | | | | (35)% | | |
Operating Income (Loss) | | | | | (2,657) | | | | | | (23,098) | | | | | | 20,441 | | | | | | (88)% | | |
Interest Income | | | | | (211) | | | | | | (323) | | | | | | 112 | | | | | | (35)% | | |
Interest Expenses | | | | | 11,070 | | | | | | 13,280 | | | | | | (2,210) | | | | | | (17)% | | |
Other Income, net | | | | | (1,351) | | | | | | (3,469) | | | | | | 2,118 | | | | | | (61)% | | |
Total Other Expenses | | | | | _(9,508) | | | | | | (9,488) | | | | | | (20) | | | | | | 0% | | |
Profit/ (Loss) before income taxes | | | | | (12,165) | | | | | | (32,586) | | | | | | 20,420 | | | | | | (63)% | | |
Income tax expense including deferred taxes | | | | | 365 | | | | | | 285 | | | | | | 79 | | | | | | 28% | | |
Net income / (loss) | | | | | (12,530) | | | | | | (32,871) | | | | | | 20,341 | | | | | | (62)% | | |
Share of (profit)/loss on equity accounted investment | | | | | (1,419) | | | | | | (38) | | | | | | (1,381) | | | | | | 3594% | | |
Net loss attributable to noncontrolling interests | | | | | (719) | | | | | | (2,241) | | | | | | 1,522 | | | | | | (68)% | | |
Cumulative translation adjustments | | | | | (226) | | | | | | 513 | | | | | | (739) | | | | | | (144)% | | |
Total comprehensive income/ (loss) | | | | | (11,337) | | | | | | (32,320) | | | | | | 20,983 | | | | | | (65)% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 90,614 | | | | | | 129,253 | | | | | | (38,638) | | | | | | (30)% | | |
India | | | | | 22,437 | | | | | | 13,006 | | | | | | 9,431 | | | | | | 73% | | |
UK | | | | | 6,647 | | | | | | 3,383 | | | | | | 3,264 | | | | | | 96% | | |
Australia | | | | | 4,937 | | | | | | 4,654 | | | | | | 283 | | | | | | 6% | | |
Other Countries | | | | | 766 | | | | | | 4,272 | | | | | | (3,505) | | | | | | (82)% | | |
Total Revenue | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,144) | | | | | | (19)% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Cost of revenues | | | | | 95,815 | | | | | | 114,224 | | | | | | (18,409) | | | | | | (16)% | | |
Exceptional items | | | | | 3,512 | | | | | | 19,093 | | | | | | (15,581) | | | | | | (82)% | | |
Total cost of revenues | | | | | 99,327 | | | | | | 133,317 | | | | | | (33,990) | | | | | | (25)% | | |
Gross profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Selling, general & administration expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Particulars | | | For the Fiscal Year Ended March 31 | | |||||||||||||||
| 2022 | | | 2021 | | | 2020 | | |||||||||||
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | -32,871 | | |
Tax Expense | | | | | -343 | | | | | | 365 | | | | | | 285 | | |
Interest Expense, Net | | | | | 9,672 | | | | | | 10,859 | | | | | | 12,958 | | |
Depreciation & Amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | 2,730 | | |
EBITDA | | | | | 4,775 | | | | | | 1,458 | | | | | | -16,898 | | |
Particulars | | | For the Fiscal Year Ended March | | | |||||||||||||||||
| 2022 | | | 2021 | | | 2020 | | | |||||||||||||
EBITDA | | | | | 4,775 | | | | | | 1,458 | | | | | | -16,898 | | | | ||
Supply chain disruption, demurrage & Customer Chargebacks(1) | | | | | 2,140 | | | | | | 4,396 | | | | | | 19,093 | | | | ||
Covid-19 induced operating expenses in MVP Group(2) | | | | | — | | | | | | 718 | | | | | | | | | | ||
One-time information technology and other expenses(3) | | | | | — | | | | | | 90 | | | | | | | | | | ||
One-time legal & professional expenses in MVP and PIL(4) | | | | | 1,706 | | | | | | 191 | | | | | | 125 | | | | ||
Profit on sale of Fixed Asset(5) | | | | | -800 | | | | | | — | | | | | | | | | | ||
PPP grant income(6) | | | | | -4,368 | | | | | | — | | | | | | | | | | | |
Covid-19 impact expenses in operations in Primacy Industries(7) | | | | | 1,337 | | | | | | 400 | | | | | | 73 | | | | ||
Bank charges | | | | | 88 | | | | | | 71 | | | | | | 917 | | | | ||
Expenses on business right-sizing(8) | | | | | | | | | | | | | | | | | 906 | | | | ||
Adjusted EBITDA | | | | | 4,879 | | | | | | 7,325 | | | | | | 4,216 | | | |
Cash provided by (used in): | | | Three-month ended June 30 | | | Fiscal Years ended March 31 | | | | | ||||||||||||||||||||||||
| 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | | |||||||||||||||||||
Operating activities | | | | | -4,779 | | | | | | -1,056 | | | | | | -15,798 | | | | | | -202 | | | | | | 8,835 | | | | ||
Investing activities | | | | | -335 | | | | | | -240 | | | | | | 2,195 | | | | | | -141 | | | | | | -1,501 | | | | ||
Financing activities | | | | | 4,405 | | | | | | 1,663 | | | | | | 39,145 | | | | | | 108 | | | | | | -6,998 | | | |
As on June 30, 2022 | | | Operating lease payments | | |||
2023 | | | | | 198 | | |
2024 | | | | | 5 | | |
2025 | | | | | — | | |
2026 | | | | | — | | |
2027 | | | | | — | | |
Thereafter | | | | | — | | |
Less: Imputed cost | | | | | -12 | | |
Lease liability as on June 30, 2022 | | | | | 190 | | |
| | | Pre-Business Combination | | | Post-Business Combination | | | | ||||||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | | | |||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | | ||||||||||||||||||||||
Directors and Executive Officers of GACQ: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.74% | | | | | | 13,129,363 | | | | | | 99.55% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sergio Pedreiro | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | ||||
All Directors and Executive Officers of GACQ as a Group (6 Individuals) | | | | | 5,019,363 | | | | | | 21.56% | | | | | | 13,189,363 | | | | | | 41.93% | | | | | | 13,189,363 | | | | | | 100% | | | | | ||||
GACQ’s and the Combined Company 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Acquisition LLC(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
D. E. Shaw Valence Portfolios, L.L.C.(5) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Highbridge Capital Management, LLC(6) | | | | | 1,939,822 | | | | | | 8.33% | | | | | | 1,939,822 | | | | | | 6.17% | | | | | | — | | | | | | * | | | | | ||||
Boothbay Fund Management, LLC(7) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Polar Asset Management Partners, Inc.(9) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Yakira Capital Management, Inc.(10) | | | | | 1,426,855 | | | | | | 6.13% | | | | | | 1,426,855 | | | | | | 4.54% | | | | | | — | | | | | | * | | | | | ||||
ATW SPAC Management LLC(11) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Lighthouse Investment Partners, LLC(12) | | | | | 1,835,533 | | | | | | 7.88% | | | | | | 1,835,533 | | | | | | 5.84% | | | | | | — | | | | | | * | | | | | ||||
Karpus Management, Inc.(13) | | | | | 1,261,325 | | | | | | 5.42% | | | | | | 1,261,325 | | | | | | 4.01% | | | | | | — | | | | | | * | | | | | ||||
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.74% | | | | | | 13,129,363 | | | | | | 99.55% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sean Peters | | | | | — | | | | | | * | | | | | | — | | | | | | | | | | | | — | | | | | | * | | | | |
| | | Pre-Business Combination | | | Post-Business Combination | | ||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | ||||||||||||||||||
Sergio Pedreiro | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of the Combined Company as a Group (7 Individuals) | | | | | 5,019,363 | | | | | | 21.56% | | | | | | 13,189,363 | | | | | | 41.93% | | | | | | 13,189,363 | | | | | | 100% | | |
| Audited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| Unaudited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
| | | | | F-78 | | | |
| | | | | F-79 | | | |
| | | | | F-80 | | | |
| Unaudited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-105 | | | |
| | | | | F-106 | | | |
| | | | | F-107 | | | |
| | | | | F-108 | | | |
| | | | | F-109 | | | |
| Audited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-129 | | | |
| | | | | F-130 | | | |
| | | | | F-131 | | | |
| | | | | F-132 | | | |
| | | | | F-133 | | | |
| | | | | F-134 | | | |
| Audited Financial Statements of GP Global Limited | | | |||||
| | | | | F-170 | | | |
| | | | | F-171 | | | |
| | | | | F-172 | | | |
| | | | | F-173 | | |
| | | | | F-174 | | | |
| | | | | F-175 | | | |
| Unaudited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-203 | | | |
| | | | | F-204 | | | |
| | | | | F-205 | | | |
| | | | | F-206 | | | |
| | | | | F-207 | | |
Description | | | Quoted Prices in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Other Unobservable Inputs (Level 3) | | |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | $ | 183,570,432 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | $ | 5,478,900 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants | | | | $ | — | | | | | $ | — | | | | | $ | 294,848 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 257,271 | | | | | $ | — | | |
Prepaid expense | | | | | 80,169 | | | | | | — | | |
Total Current Assets | | | | | 337,440 | | | | | | — | | |
Cash and Marketable Securities held in Trust Account | | | | | 183,570,432 | | | | | | — | | |
Total Assets | | | | $ | 183,907,872 | | | | | $ | — | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accrued expense | | | | $ | 1,740,131 | | | | | $ | 478 | | |
Franchise tax payable | | | | | 113,648 | | | | | | — | | |
Total Current Liabilities | | | | | 1,853,779 | | | | | | 478 | | |
Warrant Liability | | | | | 5,773,748 | | | | | | — | | |
Deferred underwriting fees | | | | | 5,935,475 | | | | | | — | | |
Total Liabilities | | | | | 13,563,002 | | | | | | 478 | | |
Commitments and Contingencies (NOTE 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 and -0- shares at redemption value of $10.05 per share on December 31, 2021 and -0- on December 31, 2020, respectively | | | | | 183,570,432 | | | | | | — | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized; 5,019,363 and -0- issued and outstanding (excluding 18,263,000 and -0- shares subject to possible redemption) at December 31, 2021 and December 31, 2020, respectively | | | | | 502 | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (13,226,064) | | | | | | (478) | | |
Total Stockholders’ Deficit | | | | | (13,225,562) | | | | | | (478) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 183,907,872 | | | | | $ | — | | |
| | | Year Ended December 31, 2021 | | | For the Period from December 28, 2020 Through December 31, 2020 | | ||||||
Formation and operating costs | | | | $ | 2,327,118 | | | | | $ | 478 | | |
Franchise tax expense | | | | | 113,648 | | | | | | | | |
Loss from operation costs | | | | | (2,440,766) | | | | | | (478) | | |
Other income and expense: | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | $ | 27,282 | | | | | $ | — | | |
Change in fair value of warrant liability | | | | | 4,007,950 | | | | | | — | | |
Offering costs allocated to warrants | | | | | (450,846) | | | | | | — | | |
Net income (loss) | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Weighted average shares outstanding of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholder’s Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – December 28, 2020 (inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (478) | | | | | | (478) | | |
Balance – December 31, 2020 (audited) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (478) | | | | | $ | (478) | | |
Insurance of common stock to Sponsor | | | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,369,206) | | | | | | (18,690,549) | | |
Forfeiture of founder shares | | | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units | | | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | | | — | | | | | | 4,296,845 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,143,620 | | | | | | 1,143,620 | | |
Balance – December 31, 2021 | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,226,064) | | | | | $ | (13,225,562) | | |
| | | Year ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | — | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | | (27,282) | | | | | | — | | |
Change in fair value of warrant liability | | | | | (4,007,950) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 450,846 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | — | | |
Prepaid expenses | | | | | (80,169) | | | | | | — | | |
Accrued expenses | | | | | 1,739,653 | | | | | | 478 | | |
Franchise tax payable | | | | | 113,648 | | | | | | | | |
Net cash used in operating activities | | | | | (667,634) | | | | | | — | | |
| | | | | | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | — | | |
Investment of cash in Trust Account | | | | | (183,543,150) | | | | | | — | | |
Net cash used in investing activities | | | | | (183,543,150) | | | | | | — | | |
| | | | | | | | | | | — | | |
Cash flows from financing activities: | | | | | | | | | | | — | | |
Proceeds from issue of founder shares | | | | | 25,000 | | | | | | — | | |
Proceeds from sale of units, net underwriting discount paid | | | | | 180,347,125 | | | | | | — | | |
Proceeds from sale of private placement | | | | | 4,536,125 | | | | | | — | | |
Payment of offering costs | | | | | (440,195) | | | | | | — | | |
Net cash provided by financing activities | | | | | 184,468,055 | | | | | | — | | |
| | | | | | | | | | | — | | |
Net change in cash | | | | | 257,271 | | | | | | — | | |
Cash at beginning of period | | | | | — | | | | | | — | | |
Cash at end of period | | | | $ | 257,271 | | | | | $ | — | | |
| | | | | | | | | | | — | | |
Non-cash investing and financing activities: | | | | | | | | | | | — | | |
Initial classification of common stock subject to possible redemption | | | | $ | 164,909,883 | | | | | $ | — | | |
Re-measurement of Common Stock subject to redemption | | | | $ | 18,660,549 | | | | | $ | — | | |
Deferred underwriting fee payable | | | | $ | 5,935,475 | | | | | $ | — | | |
Initial measurement of public warrants and private placement warrants | | | | $ | 9,781,698 | | | | | $ | — | | |
| | | As of December 31, 2021 | | |||
Gross Proceeds | | | | $ | 182,630,000 | | |
Less: | | | | | | | |
Proceeds allocated to public warrants | | | | | (9,542,418) | | |
Transaction costs | | | | | (8,628,545) | | |
Plus: | | | | | | | |
Reverse the cost allocation to warrants | | | | | 450,846 | | |
Re-measurement of carrying value to redemption value | | | | | 18,690,549 | | |
Common stock subject to possible redemption | | | | | 183,570,432 | | |
| | | June 11, 2021 | | | June 30, 2021 | | | September 30, 2021 | | | December 31, 2021 | | ||||||||||||
| | | (Public Warrants and Private Warrants) | | | (Public Warrants and Private Warrants) | | | Private Warrants | | | Private Warrants | | ||||||||||||
Exercise price | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Share price | | | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 9.88 | | | | | $ | 9.91 | | |
Expected term (years) | | | | | 5.0 | | | | | | 5.0 | | | | | | 5.44 | | | | | | 5.12 | | |
Probability of Acquisition | | | | | 75.0% | | | | | | 80.0% | | | | | | 80.0% | | | | | | 90.0% | | |
Volatility | | | | | 18.0% | | | | | | 17.6% | | | | | | 10.9% | | | | | | 20.0% | | |
Risk-free rate | | | | | 0.81% | | | | | | 0.98% | | | | | | 1.05% | | | | | | 1.26% | | |
Dividend yield (per share) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | | Private Placement | | | Public Warrant | | | Warrant Liability | | |||||||||
Fair value as of June 11, 2021 (Initial Public Offering) | | | | $ | 227,622 | | | | | $ | 8,882,500 | | | | | $ | 9,110,122 | | |
Change in valuation inputs or other assumptions(1) | | | | | 14,153 | | | | | | 541,208 | | | | | | 555,361 | | |
Fair value as of June 30, 2021 | | | | $ | 241,775 | | | | | $ | 9,423,708 | | | | | $ | 9,665,483 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (127,919) | | | | | | (5,151,903) | | | | | | (5,259,822) | | |
Fair value as of September 30, 2021 | | | | $ | 113,856 | | | | | $ | 4,291,805 | | | | | $ | 4,405,661 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | 180,992 | | | | | | 1,187,095 | | | | | | 1,368,087 | | |
Fair value as of December 31, 2021 | | | | $ | 294,848 | | | | | $ | 5,478,900 | | | | | $ | 5,773,748 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Current | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
Deferred | | | | | — | | | | | | — | | |
Federal | | | | | 506,832 | | | | | | 100 | | |
State | | | | | — | | | | | | — | | |
Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Net income before income taxes | | | | $ | 1,143,621 | | | | | $ | (478) | | |
Income tax expenses attributable to statutory rate of 21% | | | | | 240,160 | | | | | | (100) | | |
Fair value change in warrant liability | | | | | (841,670) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 94,678 | | | | | | — | | |
Change in valuation allowance | | | | | 506,832 | | | | | | 100 | | |
Total tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Total Deferred tax asset | | | | | | | | | | | | | |
Net Operating loss | | | | $ | 507,928 | | | | | $ | — | | |
Accrued expense | | | | | — | | | | | | 100 | | |
Less: Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Net deferred tax assets | | | | | 966 | | | | | | — | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Unrealized (gain) or loss | | | | | (966) | | | | | | — | | |
Net Deferred tax assets (liabilities) | | | | | — | | | | | | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Statutory Federal income tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Fair value change in warrant liability | | | | | (73.6)% | | | | | | — | | |
Offering costs allocated to warrants | | | | | 8.3% | | | | | | — | | |
Change in valuation Allowance | | | | | 44.3% | | | | | | (21.0)% | | |
Total tax provision | | | | | 0.0% | | | | | | 0.0% | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Denominator: weighted average number of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
| Assuming No Redemptions | | | Assuming 25% Redemptions | | | Assuming 50% Redemptions | | | Assuming 75% Redemptions | | | Assuming Maximum Redemptions(1) | | |||||||||||||||
| Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a % of GACQ IPO Proceeds (net of Redemptions) | | | Number of Shares Remaining | | | Fee as a% of GACQ IPO Proceeds (net of Redemptions) | |
| 18,263,000 | | | 4.50% | | | 13,397,250 | | | 6.13% | | | 9,131,500 | | | 9.00% | | | 4,565,750 | | | 10.80% | | | 0 | | | 100% | |
Name | | | Age | | | Position(s) | |
Sean Peters | | | 53 | | | Chief Executive Officer | |
Sergio Pedreiro | | | 57 | | | Chief Financial Officer and Director | |
Rohan Ajila | | | 55 | | | Director | |
Gautham Pai | | | 48 | | | Director | |
Art Drogue | | | 77 | | | Director | |
Tom Clausen | | | 60 | | | Director | |
Dennis Tse | | | 46 | | | Director | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 51,751 | | | | | $ | 72,746 | | | | | $ | (20,995) | | | | | | -28.9% | | |
Gross profit | | | | | 16,081 | | | | | | 22,747 | | | | | | (6,665) | | | | | | -29.3% | | |
Gross margin | | | | | 31.1% | | | | | | 31.3% | | | | | | | | | | | | | | |
Operating expenses | | | | | 17,844 | | | | | | 22,694 | | | | | | (4,850) | | | | | | -21.4% | | |
Income (loss) from operations before other income (expense) | | | | | (1,763) | | | | | | 53 | | | | | | (1,815) | | | | | | -3,490.4% | | |
Operating margin | | | | | -3.4% | | | | | | 0.1% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (1,747) | | | | | | (1,631) | | | | | | (116) | | | | | | -7.1% | | |
Foreign exchange gain (loss) | | | | | 17 | | | | | | (122) | | | | | | 139 | | | | | | 113.9% | | |
Other income (expense) | | | | | 12 | | | | | | (32) | | | | | | 44 | | | | | | 137.5% | | |
Income (loss) before income taxes | | | | | (3,481) | | | | | | (1,732) | | | | | | (1,747) | | | | | | -100.8% | | |
Income tax provision | | | | | (33) | | | | | | (15) | | | | | | (18) | | | | | | -120.0% | | |
Effective tax rate | | | | | 1% | | | | | | 1% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (3,448) | | | | | | (1,718) | | | | | | (1,729) | | | | | | -101.9% | | |
| | | Period Ended May 31, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Direct marketing expense | | | | $ | 7,356 | | | | | $ | 10,495 | | | | | $ | (3,139) | | | | | | -29.9% | | |
Selling and marketing | | | | | 2,721 | | | | | | 3,073 | | | | | | (352) | | | | | | -11.5% | | |
General and administration | | | | | 7,642 | | | | | | 9,048 | | | | | | (1,406) | | | | | | -15.5% | | |
Management fees | | | | | 125 | | | | | | 118 | | | | | | 7 | | | | | | 5.9% | | |
Restructuring expense | | | | | 0 | | | | | | (40) | | | | | | 40 | | | | | | 100.0% | | |
| | | Year Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Net Sales | | | | $ | 308,718 | | | | | $ | 334,679 | | | | | $ | (25,961) | | | | | | (7.8)% | | |
Gross profit | | | | | 98,763 | | | | | | 127,114 | | | | | | (28,351) | | | | | | (22.3)% | | |
Gross margin | | | | | 32.0% | | | | | | 38.0% | | | | | | | | | | | | | | |
Operating expenses | | | | | 92,443 | | | | | | 117,470 | | | | | | (25,027) | | | | | | (21.3)% | | |
Income from operations before other income (expense) | | | | | 6,320 | | | | | | 9,644 | | | | | | (3,324) | | | | | | (34.5)% | | |
Operating margin | | | | | 2.0% | | | | | | 2.9% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense) | | | | | (5,650) | | | | | | (5,880) | | | | | | 230 | | | | | | (3.9)% | | |
Foreign exchange gain (loss) | | | | | (1,057) | | | | | | 1,126 | | | | | | (2,183) | | | | | | (193.9)% | | |
Other income (expense) | | | | | 112 | | | | | | (243) | | | | | | 355 | | | | | | (146.1)% | | |
Income (loss) before income tax expense | | | | | (275) | | | | | | 4,647 | | | | | | (4,922) | | | | | | (105.9)% | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 1,254 | | | | | | 289.6% | | |
Effective tax rate | | | | | (329.5)% | | | | | | 9.6% | | | | | | | | | | | | | | |
Net income (loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (6,176) | | | | | | (177.8)% | | |
| | | Years Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | | %Change | | ||||||||||||
Direct marketing expense | | | | $ | 41,446 | | | | | $ | 57,245 | | | | | $ | (15,799) | | | | | | (27.6)% | | |
Selling and marketing | | | | | 13,471 | | | | | | 16,595 | | | | | | (3,124) | | | | | | (18.8)% | | |
General and administration | | | | | 36,949 | | | | | | 35,560 | | | | | | 1,389 | | | | | | 3.9% | | |
Management fees | | | | | 502 | | | | | | 798 | | | | | | (296) | | | | | | (37.1)% | | |
Restructuring expense | | | | | 75 | | | | | | 7,272 | | | | | | (7,197) | | | | | | (99.0)% | | |
| | | Year Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Net Sales | | | | $ | 334,679 | | | | | $ | 324,213 | | | | | $ | 10,465 | | | | | | 3.2% | | |
Gross profit | | | | | 127,114 | | | | | | 124,986 | | | | | | 2,127 | | | | | | 1.7% | | |
Gross margin | | | | | 38.0% | | | | | | 38.6% | | | | | | | | | | | | | | |
Operating expenses | | | | | 117,470 | | | | | | 176,951 | | | | | | (59,481) | | | | | | -33.6% | | |
Income from operations before other income (expense) | | | | | 9,644 | | | | | | (51,965) | | | | | | 61,609 | | | | | | -118.6% | | |
Operating margin | | | | | 2.9% | | | | | | -16.0% | | | | | | | | | | | | | | |
Other income (expense) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | | | (5,880) | | | | | | (6,734) | | | | | | 853 | | | | | | -12.7% | | |
Foreign exchange gain (loss) | | | | | 1,126 | | | | | | (890) | | | | | | 2,016 | | | | | | -226.5% | | |
Other income (expense) | | | | | (243) | | | | | | 161 | | | | | | (404) | | | | | | -250.9% | | |
Income before income taxes | | | | | 4,647 | | | | | | (59,428) | | | | | | 64,075 | | | | | | -107.8% | | |
Income tax provision | | | | | 433 | | | | | | 95 | | | | | | 338 | | | | | | 355.4% | | |
Effective tax rate | | | | | 9.6% | | | | | | 0.2% | | | | | | | | | | | | | | |
Net income | | | | | 4,214 | | | | | | (59,523) | | | | | | 63,586 | | | | | | -106.8% | | |
| | | Years Ended February 28, | | |||||||||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Direct marketing expense | | | | $ | 57,245 | | | | | $ | 64,806 | | | | | $ | (7,561) | | | | | | -11.7% | | |
Selling and marketing | | | | | 16,595 | | | | | | 21,448 | | | | | | (4,853) | | | | | | -22.6% | | |
General and administration | | | | | 35,560 | | | | | | 40,940 | | | | | | (5,380) | | | | | | -13.1% | | |
Management fees | | | | | 798 | | | | | | 1,039 | | | | | | (241) | | | | | | -23.2% | | |
Restructuring expense | | | | | 7,272 | | | | | | — | | | | | | 7,272 | | | | | | 100.0% | | |
Intangible impairment | | | | | — | | | | | | 4,285 | | | | | | (4,285) | | | | | | -100.0% | | |
Goodwill impairment | | | | | — | | | | | | 44,433 | | | | | | (44,433) | | | | | | -100.0% | | |
| | | May 31, | | | February 28, | | ||||||
| | | 2022 | | | 2022 | | ||||||
| | | (in thousands) | | |||||||||
5.36% term note | | | | $ | 11,287 | | | | | $ | 11,355 | | |
Term note payable A | | | | | 9,987 | | | | | | 10,050 | | |
Term note payable B | | | | | 10,949 | | | | | | 10,949 | | |
Revolver – (European) | | | | | 2,004 | | | | | | 1,862 | | |
Revolver – (US) | | | | | 36,259 | | | | | | 34,779 | | |
Covid Relief | | | | | 436 | | | | | | 491 | | |
| | | | | 70,922 | | | | | | 69,486 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees | | | | | (1,089) | | | | | | (1,255) | | |
Current maturities – long-term debt | | | | | (58,516) | | | | | | (941) | | |
| | | | $ | 11,317 | | | | | $ | 67,290 | | |
| | | Period ended May 31, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | 641 | | | | | $ | (5,626) | | | | | $ | 6,267 | | |
Net cash provided by (used in) investing activities | | | | | (714) | | | | | | (834) | | | | | | 120 | | |
Net cash provided by (used in) financing activities | | | | | 735 | | | | | | 5,180 | | | | | | (4,445) | | |
| | | Years Ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | (9,147) | | | | | $ | 25,690 | | | | | $ | (34,837) | | |
Net cash provided by (used in) investing activities | | | | | (3,370) | | | | | | (4,125) | | | | | | 755 | | |
Net cash provided by (used in) financing activities | | | | | 11,812 | | | | | | (21,598) | | | | | | 33,410 | | |
| | | Years Ended February 28, | | |||||||||||||||
(in thousands) | | | 2021 | | | 2020 | | | $ Change | | |||||||||
Net cash provided by (used in) operating activities | | | | $ | 25,689 | | | | | | (5,513) | | | | | | 31,202 | | |
Net cash (used in) investing activities | | | | | (4,125) | | | | | | (1,831) | | | | | | (2,294) | | |
Net cash provided by (used in) financing activities | | | | | (21,598) | | | | | | 2,329 | | | | | | (23,927) | | |
| | | For the three months ended May 31, | | |||||||||
(in thousands) | | | 2022 | | | 2021 | | ||||||
Net Income (Loss) | | | | | (3,447) | | | | | | (500) | | |
Income tax provision | | | | | (33) | | | | | | (1,233) | | |
Interest expense, net | | | | | 1,747 | | | | | | 1,631 | | |
Depreciation & Amortization | | | | | 2,367 | | | | | | 1,750 | | |
EBITDA | | | | | 634 | | | | | | 1,648 | | |
Management fees(1) | | | | | 125 | | | | | | 118 | | |
PartyLite restructuring(2) | | | | | — | | | | | | 61 | | |
COVID-19 non-recurring legal and other costs(3) | | | | | — | | | | | | 5 | | |
Unconsummated refinancing costs(4) | | | | | — | | | | | | 542 | | |
Triad deal costs(5) | | | | | 929 | | | | | | — | | |
Adjusted EBITDA | | | | | 1,688 | | | | | $ | 2,374 | | |
| | | For the year ended February 28, | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Net Income (Loss) | | | | | (1,962) | | | | | | 4,214 | | | | | | (59,523) | | |
Income tax provision | | | | | 1,687 | | | | | | 433 | | | | | | 95 | | |
Interest expense, net | | | | | 5,650 | | | | | | 5,880 | | | | | | 6,734 | | |
Depreciation & Amortization | | | | | 7,045 | | | | | | 7,065 | | | | | | 6,799 | | |
EBITDA | | | | | 12,420 | | | | | | 17,592 | | | | | | (45,895) | | |
Management fees(1) | | | | | 502 | | | | | | 798 | | | | | | 1,039 | | |
Goodwill impairment(2) | | | | | — | | | | | | — | | | | | | 44,433 | | |
Intangible asset impairment(3) | | | | | — | | | | | | — | | | | | | 4,285 | | |
PPP grant income(4) | | | | | — | | | | | | (8,479) | | | | | | — | | |
PartyLite restructuring(5) | | | | | 75 | | | | | | 8,826 | | | | | | — | | |
One-time customer costs(6) | | | | | — | | | | | | — | | | | | | 1,000 | | |
COVID-19 non-recurring legal and other costs(7) | | | | | 22 | | | | | | 254 | | | | | | — | | |
Unconsummated refinancing costs(8) | | | | | 370 | | | | | | 560 | | | | | | 199 | | |
Unconsummated sale of company(9) | | | | | — | | | | | | 87 | | | | | | 356 | | |
Project Aurora(10) | | | | | — | | | | | | 23 | | | | | | 325 | | |
Project Revolution(11) | | | | | — | | | | | | 45 | | | | | | 183 | | |
eComm startup costs(12) | | | | | 165 | | | | | | — | | | | | | — | | |
Triad deal costs(13) | | | | | 2,707 | | | | | | — | | | | | | — | | |
Adjusted EBITDA | | | | $ | 16,260 | | | | | $ | 19,707 | | | | | $ | 5,924 | | |
| | | For the fiscal year ended | | |||||||||
(in USD thousands) | | | March 31, 2021 | | | March 31, 2020 | | ||||||
North America | | | | $ | 90,614 | | | | | $ | 129,252 | | |
India | | | | $ | 22,437 | | | | | $ | 13,006 | | |
Europe | | | | $ | 6,647 | | | | | $ | 3,383 | | |
Australia | | | | $ | 4,937 | | | | | $ | 4,654 | | |
Rest of the World | | | | $ | 766 | | | | | $ | 4,272 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Air Fresheners (non-solid) | | | | | 71 | | | | | | 14% | | | | | | 29 | | |
Deodorants | | | | | 571 | | | | | | 7% | | | | | | 143-157 | | |
Shampoo | | | | | 957 | | | | | | 5% | | | | | | 129-157 | | |
Hand Sanitizers | | | | | 314 | | | | | | * | | | | | | 50-57 | | |
Product Categories | | | Retail Market ($ million) | | | Expected CAGR 2020-2026 | | | Contract Manufacturing Market 2020 ($ million) | | |||||||||
Other Personal Care and health & Hygiene category | | | | | 429 | | | | | | 7% | | | | | | 50-57 | | |
Disinfectant Spray | | | | | 214 | | | | | | * | | | | | | 57-64 | | |
Sub-total | | | | $ | 2,557 | | | | | | | | | | | $ | 458-$522 | | |
Particulars (in USD thousands) | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Revenues | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Cost of revenue | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross Profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Selling, general & administrative expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Depreciation & amortization | | | | | 639 | | | | | | 687 | | | | | | -47 | | | | | | -7% | | |
Total operating expenses | | | | | 6,540 | | | | | | 8,356 | | | | | | -1,816 | | | | | | -22% | | |
Operating Income (Loss) | | | | | 150 | | | | | | -2,183 | | | | | | 2,333 | | | | | | -107% | | |
Interest Income | | | | | -61 | | | | | | -61 | | | | | | 0 | | | | | | 0% | | |
Interest Expenses | | | | | 2,845 | | | | | | 878 | | | | | | 1,967 | | | | | | 224% | | |
Other Income, net | | | | | -247 | | | | | | -4,592 | | | | | | 4,345 | | | | | | -95% | | |
Total Other Expenses | | | | | -2,537 | | | | | | 3,775 | | | | | | -6,313 | | | | | | -167% | | |
Profit/ (Loss) before income taxes | | | | | -2,387 | | | | | | 1,592 | | | | | | -3,980 | | | | | | -250% | | |
Income tax expense including deferred taxes | | | | | 577 | | | | | | -268 | | | | | | 845 | | | | | | -315% | | |
Net income / (loss) | | | | | -2,964 | | | | | | 1,860 | | | | | | -4,825 | | | | | | -259% | | |
Share of (profit)/loss on equity accounted investment | | | | | 24 | | | | | | -366 | | | | | | 390 | | | | | | -106% | | |
Net loss attributable to noncontrolling interests | | | | | -99 | | | | | | 231 | | | | | | -331 | | | | | | -143% | | |
Cumulative translation adjustments | | | | | 1161 | | | | | | 140 | | | | | | 1,020 | | | | | | 728% | | |
Total comprehensive income/ (loss) | | | | | -1,827 | | | | | | 2,367 | | | | | | -4,194 | | | | | | -177% | | |
Revenue by Geographical Location | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
USA | | | | | 18,676 | | | | | | 12,030 | | | | | | 6,647 | | | | | | 55% | | |
India | | | | | 5,018 | | | | | | 5,846 | | | | | | -828 | | | | | | -14% | | |
Australia | | | | | 1,337 | | | | | | 1,173 | | | | | | 164 | | | | | | 14% | | |
UK | | | | | 1,822 | | | | | | 2,251 | | | | | | -429 | | | | | | -19% | | |
Other Countries | | | | | 1,762 | | | | | | 1,054 | | | | | | 708 | | | | | | 67% | | |
Total Revenue | | | | | 28,614 | | | | | | 22,354 | | | | | | 6,261 | | | | | | 28% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Total cost of revenues | | | | | 21,925 | | | | | | 16,181 | | | | | | 5,744 | | | | | | 35% | | |
Gross profit | | | | | 6,690 | | | | | | 6,173 | | | | | | 517 | | | | | | 8% | | |
Particulars | | | Period Ended June 2022 | | | Period Ended June 2021 | | | $ Change | | | % Change | | ||||||||||||
Selling, general and administration expenses | | | | | 5,900 | | | | | | 7,669 | | | | | | -1,769 | | | | | | -23% | | |
Particulars (in USD thousands) | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Cost of revenue | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross Profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Selling, general & administrative expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
Depreciation & amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | -236 | | | | | | -9% | | |
Total operating expenses | | | | | 29,907 | | | | | | 28,732 | | | | | | 1,175 | | | | | | 4% | | |
Operating Income (Loss) | | | | | -4,738 | | | | | | -2,657 | | | | | | -2,081 | | | | | | 78% | | |
Interest Income | | | | | -242 | | | | | | -211 | | | | | | -31 | | | | | | 15% | | |
Interest Expenses | | | | | 9,915 | | | | | | 11,070 | | | | | | -1,155 | | | | | | -10% | | |
Other Income, net | | | | | -6,985 | | | | | | -1,351 | | | | | | -5,634 | | | | | | 417% | | |
Total Other Expenses | | | | | -2,688 | | | | | | -9,508 | | | | | | 6,820 | | | | | | -72% | | |
Profit/ (Loss) before income taxes | | | | | -7,426 | | | | | | -12,165 | | | | | | 4,739 | | | | | | -39% | | |
Income tax expense including deferred taxes | | | | | -343 | | | | | | 365 | | | | | | -708 | | | | | | -194% | | |
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | 5,447 | | | | | | -43% | | |
Share of (profit)/loss on equity accounted investment | | | | | -1,710 | | | | | | -1419 | | | | | | -291 | | | | | | 20% | | |
Net loss attributable to noncontrolling interests | | | | | -223 | | | | | | -719 | | | | | | 496 | | | | | | -69% | | |
Cumulative translation adjustments | | | | | 452 | | | | | | -226 | | | | | | 678 | | | | | | -300% | | |
Total comprehensive income/ (loss) | | | | | -4,922 | | | | | | -11,337 | | | | | | 6,415 | | | | | | -57% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2022 vs 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 61,208 | | | | | | 90,614 | | | | | | -29,406 | | | | | | -32% | | |
India | | | | | 21,312 | | | | | | 22,437 | | | | | | -1,125 | | | | | | -5% | | |
UK | | | | | 8,728 | | | | | | 6,647 | | | | | | 2,081 | | | | | | 31% | | |
Australia | | | | | 5,226 | | | | | | 4,937 | | | | | | 289 | | | | | | 6% | | |
Other Countries | | | | | 6,594 | | | | | | 766 | | | | | | 5,828 | | | | | | 761% | | |
Total Revenue | | | | | 103,068 | | | | | | 125,402 | | | | | | -22,334 | | | | | | -18% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Total cost of revenues | | | | | 77,899 | | | | | | 99,327 | | | | | | -21,428 | | | | | | -22% | | |
Gross profit | | | | | 25,169 | | | | | | 26,075 | | | | | | -906 | | | | | | -3% | | |
Particulars | | | For the Fiscal Year Ended March 31, | | | 2022 vs. 2021 | | ||||||||||||||||||
| 2022 | | | 2021 | | | $ Change | | | % Change | | ||||||||||||||
Selling, general and administration expenses | | | | | 27,379 | | | | | | 25,968 | | | | | | 1,411 | | | | | | 5% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
Revenues | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,166) | | | | | | (19)% | | |
Cost of revenue | | | | | 99,327 | | | | | | 133,313 | | | | | | (33,986) | | | | | | (25)% | | |
Gross Profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
Selling, general & administrative expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Depreciation & amortization | | | | | 2,764 | | | | | | 2,730 | | | | | | 34 | | | | | | 1% | | |
Total operating expenses | | | | | 28,732 | | | | | | 44,353 | | | | | | (15,621) | | | | | | (35)% | | |
Operating Income (Loss) | | | | | (2,657) | | | | | | (23,098) | | | | | | 20,441 | | | | | | (88)% | | |
Interest Income | | | | | (211) | | | | | | (323) | | | | | | 112 | | | | | | (35)% | | |
Interest Expenses | | | | | 11,070 | | | | | | 13,280 | | | | | | (2,210) | | | | | | (17)% | | |
Other Income, net | | | | | (1,351) | | | | | | (3,469) | | | | | | 2,118 | | | | | | (61)% | | |
Total Other Expenses | | | | | _(9,508) | | | | | | (9,488) | | | | | | (20) | | | | | | 0% | | |
Profit/ (Loss) before income taxes | | | | | (12,165) | | | | | | (32,586) | | | | | | 20,420 | | | | | | (63)% | | |
Income tax expense including deferred taxes | | | | | 365 | | | | | | 285 | | | | | | 79 | | | | | | 28% | | |
Net income / (loss) | | | | | (12,530) | | | | | | (32,871) | | | | | | 20,341 | | | | | | (62)% | | |
Share of (profit)/loss on equity accounted investment | | | | | (1,419) | | | | | | (38) | | | | | | (1,381) | | | | | | 3594% | | |
Net loss attributable to noncontrolling interests | | | | | (719) | | | | | | (2,241) | | | | | | 1,522 | | | | | | (68)% | | |
Cumulative translation adjustments | | | | | (226) | | | | | | 513 | | | | | | (739) | | | | | | (144)% | | |
Total comprehensive income/ (loss) | | | | | (11,337) | | | | | | (32,320) | | | | | | 20,983 | | | | | | (65)% | | |
Revenue by Geographical Location | | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||||
USA | | | | | 90,614 | | | | | | 129,253 | | | | | | (38,638) | | | | | | (30)% | | |
India | | | | | 22,437 | | | | | | 13,006 | | | | | | 9,431 | | | | | | 73% | | |
UK | | | | | 6,647 | | | | | | 3,383 | | | | | | 3,264 | | | | | | 96% | | |
Australia | | | | | 4,937 | | | | | | 4,654 | | | | | | 283 | | | | | | 6% | | |
Other Countries | | | | | 766 | | | | | | 4,272 | | | | | | (3,505) | | | | | | (82)% | | |
Total Revenue | | | | | 125,402 | | | | | | 154,568 | | | | | | (29,144) | | | | | | (19)% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Cost of revenues | | | | | 95,815 | | | | | | 114,224 | | | | | | (18,409) | | | | | | (16)% | | |
Exceptional items | | | | | 3,512 | | | | | | 19,093 | | | | | | (15,581) | | | | | | (82)% | | |
Total cost of revenues | | | | | 99,327 | | | | | | 133,317 | | | | | | (33,990) | | | | | | (25)% | | |
Gross profit | | | | | 26,075 | | | | | | 21,256 | | | | | | 4,820 | | | | | | 23% | | |
| | | For the Fiscal Year Ended March 31, | | | 2021 vs. 2020 | | ||||||||||||||||||
| | | 2021 | | | 2020 | | | $ Change | | | % Change | | ||||||||||||
Selling, general & administration expenses | | | | | 25,968 | | | | | | 41,623 | | | | | | (15,655) | | | | | | (38)% | | |
Particulars | | | For the Fiscal Year Ended March 31 | | |||||||||||||||
| 2022 | | | 2021 | | | 2020 | | |||||||||||
Net income / (loss) | | | | | -7,083 | | | | | | -12,530 | | | | | | -32,871 | | |
Tax Expense | | | | | -343 | | | | | | 365 | | | | | | 285 | | |
Interest Expense, Net | | | | | 9,672 | | | | | | 10,859 | | | | | | 12,958 | | |
Depreciation & Amortization | | | | | 2,528 | | | | | | 2,764 | | | | | | 2,730 | | |
EBITDA | | | | | 4,775 | | | | | | 1,458 | | | | | | -16,898 | | |
Particulars | | | For the Fiscal Year Ended March | | | |||||||||||||||||
| 2022 | | | 2021 | | | 2020 | | | |||||||||||||
EBITDA | | | | | 4,775 | | | | | | 1,458 | | | | | | -16,898 | | | | ||
Supply chain disruption, demurrage & Customer Chargebacks(1) | | | | | 2,140 | | | | | | 4,396 | | | | | | 19,093 | | | | ||
Covid-19 induced operating expenses in MVP Group(2) | | | | | — | | | | | | 718 | | | | | | | | | | ||
One-time information technology and other expenses(3) | | | | | — | | | | | | 90 | | | | | | | | | | ||
One-time legal & professional expenses in MVP and PIL(4) | | | | | 1,706 | | | | | | 191 | | | | | | 125 | | | | ||
Profit on sale of Fixed Asset(5) | | | | | -800 | | | | | | — | | | | | | | | | | ||
PPP grant income(6) | | | | | -4,368 | | | | | | — | | | | | | | | | | | |
Covid-19 impact expenses in operations in Primacy Industries(7) | | | | | 1,337 | | | | | | 400 | | | | | | 73 | | | | ||
Bank charges | | | | | 88 | | | | | | 71 | | | | | | 917 | | | | ||
Expenses on business right-sizing(8) | | | | | | | | | | | | | | | | | 906 | | | | ||
Adjusted EBITDA | | | | | 4,879 | | | | | | 7,325 | | | | | | 4,216 | | | |
Cash provided by (used in): | | | Three-month ended June 30 | | | Fiscal Years ended March 31 | | | | | ||||||||||||||||||||||||
| 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | | |||||||||||||||||||
Operating activities | | | | | -4,779 | | | | | | -1,056 | | | | | | -15,798 | | | | | | -202 | | | | | | 8,835 | | | | ||
Investing activities | | | | | -335 | | | | | | -240 | | | | | | 2,195 | | | | | | -141 | | | | | | -1,501 | | | | ||
Financing activities | | | | | 4,405 | | | | | | 1,663 | | | | | | 39,145 | | | | | | 108 | | | | | | -6,998 | | | |
As on June 30, 2022 | | | Operating lease payments | | |||
2023 | | | | | 198 | | |
2024 | | | | | 5 | | |
2025 | | | | | — | | |
2026 | | | | | — | | |
2027 | | | | | — | | |
Thereafter | | | | | — | | |
Less: Imputed cost | | | | | -12 | | |
Lease liability as on June 30, 2022 | | | | | 190 | | |
| | | Pre-Business Combination | | | Post-Business Combination | | | | ||||||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | | | |||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | | ||||||||||||||||||||||
Directors and Executive Officers of GACQ: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.74% | | | | | | 13,129,363 | | | | | | 99.55% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sergio Pedreiro | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | ||||
All Directors and Executive Officers of GACQ as a Group (6 Individuals) | | | | | 5,019,363 | | | | | | 21.56% | | | | | | 13,189,363 | | | | | | 41.93% | | | | | | 13,189,363 | | | | | | 100% | | | | | ||||
GACQ’s and the Combined Company 5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Global Consumer Acquisition LLC(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
D. E. Shaw Valence Portfolios, L.L.C.(5) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Highbridge Capital Management, LLC(6) | | | | | 1,939,822 | | | | | | 8.33% | | | | | | 1,939,822 | | | | | | 6.17% | | | | | | — | | | | | | * | | | | | ||||
Boothbay Fund Management, LLC(7) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Polar Asset Management Partners, Inc.(9) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Yakira Capital Management, Inc.(10) | | | | | 1,426,855 | | | | | | 6.13% | | | | | | 1,426,855 | | | | | | 4.54% | | | | | | — | | | | | | * | | | | | ||||
ATW SPAC Management LLC(11) | | | | | 1,680,000 | | | | | | 7.22% | | | | | | 1,680,000 | | | | | | 5.34% | | | | | | — | | | | | | * | | | | | ||||
Lighthouse Investment Partners, LLC(12) | | | | | 1,835,533 | | | | | | 7.88% | | | | | | 1,835,533 | | | | | | 5.84% | | | | | | — | | | | | | * | | | | | ||||
Karpus Management, Inc.(13) | | | | | 1,261,325 | | | | | | 5.42% | | | | | | 1,261,325 | | | | | | 4.01% | | | | | | — | | | | | | * | | | | | ||||
Directors and Executive Officers of the Combined Company: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||
Rohan Ajila(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 4,959,363 | | | | | | 15.77% | | | | | | 4,959,363 | | | | | | 37.60% | | | | | ||||
Gautham Pai(3) | | | | | 4,959,363 | | | | | | 21.30% | | | | | | 13,129,363 | | | | | | 41.74% | | | | | | 13,129,363 | | | | | | 99.55% | | | | | ||||
Art Drogue | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Tom Clausen | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Dennis Tse | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | | 20,000 | | | | | | * | | | | | ||||
Sean Peters | | | | | — | | | | | | * | | | | | | — | | | | | | | | | | | | — | | | | | | * | | | | |
| | | Pre-Business Combination | | | Post-Business Combination | | ||||||||||||||||||||||||||||||
| | | Common Stock | | | Assuming No Redemptions | | | Assuming 100% Redemptions | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Number of Shares Beneficially Owned(2) | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | | Number of Shares Beneficially Owned | | | % of Outstanding Shares of Common Stock | | ||||||||||||||||||
Sergio Pedreiro | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of the Combined Company as a Group (7 Individuals) | | | | | 5,019,363 | | | | | | 21.56% | | | | | | 13,189,363 | | | | | | 41.93% | | | | | | 13,189,363 | | | | | | 100% | | |
| Audited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | | |
| | | | | F-8 | | | |
| Unaudited Financial Statements of Global Consumer Acquisition Corp. | | | | | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | | |
| | | | | F-26 | | | |
| | | | | F-27 | | | |
| | | | | F-28 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-45 | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | | |
| Audited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-75 | | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
| | | | | F-78 | | | |
| | | | | F-79 | | | |
| | | | | F-80 | | | |
| Unaudited Financial Statements of Luminex Home Décor & Fragrance Holding Corporation | | | | | | | |
| | | | | F-105 | | | |
| | | | | F-106 | | | |
| | | | | F-107 | | | |
| | | | | F-108 | | | |
| | | | | F-109 | | | |
| Audited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-129 | | | |
| | | | | F-130 | | | |
| | | | | F-131 | | | |
| | | | | F-132 | | | |
| | | | | F-133 | | | |
| | | | | F-134 | | | |
| Audited Financial Statements of GP Global Limited | | | |||||
| | | | | F-170 | | | |
| | | | | F-171 | | | |
| | | | | F-172 | | | |
| | | | | F-173 | | |
| | | | | F-174 | | | |
| | | | | F-175 | | | |
| Unaudited Financial Statements of GP Global Limited | | | | | | | |
| | | | | F-203 | | | |
| | | | | F-204 | | | |
| | | | | F-205 | | | |
| | | | | F-206 | | | |
| | | | | F-207 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 257,271 | | | | | $ | — | | |
Prepaid expense | | | | | 80,169 | | | | | | — | | |
Total Current Assets | | | | | 337,440 | | | | | | — | | |
Cash and Marketable Securities held in Trust Account | | | | | 183,570,432 | | | | | | — | | |
Total Assets | | | | $ | 183,907,872 | | | | | $ | — | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accrued expense | | | | $ | 1,740,131 | | | | | $ | 478 | | |
Franchise tax payable | | | | | 113,648 | | | | | | — | | |
Total Current Liabilities | | | | | 1,853,779 | | | | | | 478 | | |
Warrant Liability | | | | | 5,773,748 | | | | | | — | | |
Deferred underwriting fees | | | | | 5,935,475 | | | | | | — | | |
Total Liabilities | | | | | 13,563,002 | | | | | | 478 | | |
Commitments and Contingencies (NOTE 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 and -0- shares at redemption value of $10.05 per share on December 31, 2021 and -0- on December 31, 2020, respectively | | | | | 183,570,432 | | | | | | — | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized; 5,019,363 and -0- issued and outstanding (excluding 18,263,000 and -0- shares subject to possible redemption) at December 31, 2021 and December 31, 2020, respectively | | | | | 502 | | | | | | — | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (13,226,064) | | | | | | (478) | | |
Total Stockholders’ Deficit | | | | | (13,225,562) | | | | | | (478) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 183,907,872 | | | | | $ | — | | |
| | | Year Ended December 31, 2021 | | | For the Period from December 28, 2020 Through December 31, 2020 | | ||||||
Formation and operating costs | | | | $ | 2,327,118 | | | | | $ | 478 | | |
Franchise tax expense | | | | | 113,648 | | | | | | | | |
Loss from operation costs | | | | | (2,440,766) | | | | | | (478) | | |
Other income and expense: | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | $ | 27,282 | | | | | $ | — | | |
Change in fair value of warrant liability | | | | | 4,007,950 | | | | | | — | | |
Offering costs allocated to warrants | | | | | (450,846) | | | | | | — | | |
Net income (loss) | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Weighted average shares outstanding of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholder’s Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – December 28, 2020 (inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (478) | | | | | | (478) | | |
Balance – December 31, 2020 (audited) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (478) | | | | | $ | (478) | | |
Insurance of common stock to Sponsor | | | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,369,206) | | | | | | (18,690,549) | | |
Forfeiture of founder shares | | | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units | | | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | | | — | | | | | | 4,296,845 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,143,620 | | | | | | 1,143,620 | | |
Balance – December 31, 2021 | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,226,064) | | | | | $ | (13,225,562) | | |
| | | Year ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | — | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | | (27,282) | | | | | | — | | |
Change in fair value of warrant liability | | | | | (4,007,950) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 450,846 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | — | | |
Prepaid expenses | | | | | (80,169) | | | | | | — | | |
Accrued expenses | | | | | 1,739,653 | | | | | | 478 | | |
Franchise tax payable | | | | | 113,648 | | | | | | | | |
Net cash used in operating activities | | | | | (667,634) | | | | | | — | | |
| | | | | | | | | | | — | | |
Cash flows from investing activities: | | | | | | | | | | | — | | |
Investment of cash in Trust Account | | | | | (183,543,150) | | | | | | — | | |
Net cash used in investing activities | | | | | (183,543,150) | | | | | | — | | |
| | | | | | | | | | | — | | |
Cash flows from financing activities: | | | | | | | | | | | — | | |
Proceeds from issue of founder shares | | | | | 25,000 | | | | | | — | | |
Proceeds from sale of units, net underwriting discount paid | | | | | 180,347,125 | | | | | | — | | |
Proceeds from sale of private placement | | | | | 4,536,125 | | | | | | — | | |
Payment of offering costs | | | | | (440,195) | | | | | | — | | |
Net cash provided by financing activities | | | | | 184,468,055 | | | | | | — | | |
| | | | | | | | | | | — | | |
Net change in cash | | | | | 257,271 | | | | | | — | | |
Cash at beginning of period | | | | | — | | | | | | — | | |
Cash at end of period | | | | $ | 257,271 | | | | | $ | — | | |
| | | | | | | | | | | — | | |
Non-cash investing and financing activities: | | | | | | | | | | | — | | |
Initial classification of common stock subject to possible redemption | | | | $ | 164,909,883 | | | | | $ | — | | |
Re-measurement of Common Stock subject to redemption | | | | $ | 18,660,549 | | | | | $ | — | | |
Deferred underwriting fee payable | | | | $ | 5,935,475 | | | | | $ | — | | |
Initial measurement of public warrants and private placement warrants | | | | $ | 9,781,698 | | | | | $ | — | | |
| | | As of December 31, 2021 | | |||
Gross Proceeds | | | | $ | 182,630,000 | | |
Less: | | | | | | | |
Proceeds allocated to public warrants | | | | | (9,542,418) | | |
Transaction costs | | | | | (8,628,545) | | |
Plus: | | | | | | | |
Reverse the cost allocation to warrants | | | | | 450,846 | | |
Re-measurement of carrying value to redemption value | | | | | 18,690,549 | | |
Common stock subject to possible redemption | | | | | 183,570,432 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Denominator: weighted average number of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
Description | | | Quoted Prices in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Other Unobservable Inputs (Level 3) | | |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | $ | 183,570,432 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | $ | 5,478,900 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants | | | | $ | — | | | | | $ | — | | | | | $ | 294,848 | | |
| | | June 11, 2021 | | | June 30, 2021 | | | September 30, 2021 | | | December 31, 2021 | | ||||||||||||
| | | (Public Warrants and Private Warrants) | | | (Public Warrants and Private Warrants) | | | Private Warrants | | | Private Warrants | | ||||||||||||
Exercise price | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Share price | | | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 9.88 | | | | | $ | 9.91 | | |
Expected term (years) | | | | | 5.0 | | | | | | 5.0 | | | | | | 5.44 | | | | | | 5.12 | | |
Probability of Acquisition | | | | | 75.0% | | | | | | 80.0% | | | | | | 80.0% | | | | | | 90.0% | | |
Volatility | | | | | 18.0% | | | | | | 17.6% | | | | | | 10.9% | | | | | | 20.0% | | |
Risk-free rate | | | | | 0.81% | | | | | | 0.98% | | | | | | 1.05% | | | | | | 1.26% | | |
Dividend yield (per share) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | | Private Placement | | | Public Warrant | | | Warrant Liability | | |||||||||
Fair value as of June 11, 2021 (Initial Public Offering) | | | | $ | 227,622 | | | | | $ | 8,882,500 | | | | | $ | 9,110,122 | | |
Change in valuation inputs or other assumptions(1) | | | | | 14,153 | | | | | | 541,208 | | | | | | 555,361 | | |
Fair value as of June 30, 2021 | | | | $ | 241,775 | | | | | $ | 9,423,708 | | | | | $ | 9,665,483 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (127,919) | | | | | | (5,151,903) | | | | | | (5,259,822) | | |
Fair value as of September 30, 2021 | | | | $ | 113,856 | | | | | $ | 4,291,805 | | | | | $ | 4,405,661 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | 180,992 | | | | | | 1,187,095 | | | | | | 1,368,087 | | |
Fair value as of December 31, 2021 | | | | $ | 294,848 | | | | | $ | 5,478,900 | | | | | $ | 5,773,748 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Current | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
Deferred | | | | | — | | | | | | — | | |
Federal | | | | | 506,832 | | | | | | 100 | | |
State | | | | | — | | | | | | — | | |
Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Net income before income taxes | | | | $ | 1,143,621 | | | | | $ | (478) | | |
Income tax expenses attributable to statutory rate of 21% | | | | | 240,160 | | | | | | (100) | | |
Fair value change in warrant liability | | | | | (841,670) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 94,678 | | | | | | — | | |
Change in valuation allowance | | | | | 506,832 | | | | | | 100 | | |
Total tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Total Deferred tax asset | | | | | | | | | | | | | |
Net Operating loss | | | | $ | 507,928 | | | | | $ | — | | |
Accrued expense | | | | | — | | | | | | 100 | | |
Less: Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Net deferred tax assets | | | | | 966 | | | | | | — | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Unrealized (gain) or loss | | | | | (966) | | | | | | — | | |
Net Deferred tax assets (liabilities) | | | | | — | | | | | | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Statutory Federal income tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Fair value change in warrant liability | | | | | (73.6)% | | | | | | — | | |
Offering costs allocated to warrants | | | | | 8.3% | | | | | | — | | |
Change in valuation Allowance | | | | | 44.3% | | | | | | (21.0)% | | |
Total tax provision | | | | | 0.0% | | | | | | 0.0% | | |
| | | June 30 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | (Audited) | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 83,302 | | | | | $ | 257,271 | | |
Prepaid expense | | | | | 29,750 | | | | | | 80,169 | | |
Other receivable | | | | | 75,000 | | | | | | — | | |
Total Current Assets | | | | | 188,052 | | | | | | 337,440 | | |
Cash and Marketable Securities held in Trust Account | | | | | 185,439,396 | | | | | | 183,570,432 | | |
Total Assets | | | | $ | 185,627,448 | | | | | $ | 183,907,872 | | |
LIABILITIES AND STOCKHOLDERS’ DIFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Due to related parties | | | | $ | 40,000 | | | | | $ | — | | |
Accrued expense | | | | | 2,669,728 | | | | | | 1,740,131 | | |
Franchise tax payable | | | | | 53,879 | | | | | | 113,648 | | |
Promissory notes | | | | | 1,066,586 | | | | | | — | | |
Extension note | | | | | 1,826,300 | | | | | | — | | |
Total Current Liabilities | | | | | 5,656,493 | | | | | | 1,853,779 | | |
Warrant Liability | | | | | 1,864,265 | | | | | | 5,773,748 | | |
Deferred underwriting fees | | | | | 5,935,475 | | | | | | 5,935,475 | | |
Total Liabilities | | | | | 13,456,233 | | | | | | 13,563,002 | | |
Commitments and Contingencies (NOTE 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 shares, $0.0001 par value, at redemption value of $10.15 and $10.05 per share on June 30, 2022 and December 31, 2021, respectively | | | | | 185,385,517 | | | | | | 183,570,432 | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized; 5,019,363 issued and outstanding (excluding 18,263,000 shares subject to possible redemption) at June 30, 2022 and December 31, 2021, respectively | | | | | 502 | | | | | | 502 | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (13,214,804) | | | | | | (13,226,064) | | |
Total Stockholders’ Deficit | | | | | (13,214,302) | | | | | | (13,225,562) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 185,627,448 | | | | | $ | 183,907,872 | | |
| | | For Three Month Ended June 30 | | | For Six Months Ended June 30, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
| | | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | | ||||||||||||
Formation and operating costs | | | | $ | 902,313 | | | | | $ | 104,676 | | | | | $ | 2,044,656 | | | | | $ | 150,306 | | |
Franchise tax | | | | | 50,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | |
Loss from operation costs | | | | | (952,313) | | | | | | (104,676) | | | | | | (2,144,656) | | | | | | (150,306) | | |
Other income and expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | $ | 132,004 | | | | | $ | 2,025 | | | | | $ | 88,104 | | | | | $ | 2,025 | | |
Interest expense | | | | | (26,586) | | | | | | — | | | | | | (26,586) | | | | | | — | | |
Change in fair value of warrant liability | | | | | 615,931 | | | | | | 116,216 | | | | | | 3,909,483 | | | | | | 116,216 | | |
Non-operating expense | | | | | — | | | | | | (450,846) | | | | | | — | | | | | | (450,846) | | |
Net income (loss) | | | | $ | (230,964) | | | | | $ | (437,281) | | | | | $ | 1,826,345 | | | | | $ | (482,911) | | |
Weighted average shares outstanding of redeemable common stock | | | | | 18,263,000 | | | | | | 17,930,632 | | | | | | 18,263,000 | | | | | | 1,882,221 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
Weighted average shares outstanding of non-redeemable common stock | | | | | 5,019,363 | | | | | | 210,717 | | | | | | 5,019,363 | | | | | | 4,504,578 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 (audited) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (478) | | | | | $ | (478) | | |
Issuance of common stock to Sponsor | | | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (45,630) | | | | | | (45,630) | | |
Balance – March 31, 2021 (unaudited) | | | | | 4,887,500 | | | | | $ | 489 | | | | | $ | 24,511 | | | | | $ | (46,108) | | | | | $ | (21,108) | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,311,924) | | | | | | (18,633,267) | | |
Forfeiture of founder shares | | | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units | | | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | | | — | | | | | | 4,296,845 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (437,281) | | | | | | (437,281) | | |
Balance – June 30, 2021 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (14,795,313) | | | | | $ | (14,794,811) | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2022 (audited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,226,064) | | | | | $ | (13,225,562) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 2,057,309 | | | | | | 2,057,309 | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | 43,900 | | | | | | 43,900 | | |
Balance – March 31, 2022 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (11,124,855) | | | | | $ | (11,124,353) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | (230,964) | | | | | | (230,964) | | |
Additional amount deposited into trust ($0.10 per common stock subject to possible redemption) | | | | | — | | | | | | — | | | | | | — | | | | | | (1,826,300) | | | | | | (1,826,300) | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | (32,685) | | | | | | (32,685) | | |
Balance – June 30, 2022 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,214,804) | | | | | | (13,214,302) | | |
| | | For Six Months Ended June 30 | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (Unaudited) | | | (Unaudited) | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,826,345 | | | | | $ | (482,911) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | | (88,104) | | | | | | (2,025) | | |
Change in fair value of warrant liability | | | | | (3,909,483) | | | | | | (116,215) | | |
Offering costs allocated to warrants | | | | | — | | | | | | 450,846 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 50,419 | | | | | | (387,868) | | |
Other Receivable | | | | | (75,000) | | | | | | — | | |
Due to related parties | | | | | 40,000 | | | | | | — | | |
Accrued expenses | | | | | 929,597 | | | | | | 80,787 | | |
Franchise tax payable | | | | | (59,769) | | | | | | — | | |
Promissory note-interest | | | | | 26,586 | | | | | | — | | |
Net cash used in operating activities | | | | | (1,259,409) | | | | | | (457,386) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | (1,826,300) | | | | | | (183,543,150) | | |
Withdraw from Trust Account for Franchise tax payment | | | | | 45,440 | | | | | | — | | |
Net cash used in investing activities | | | | | (1,780,860) | | | | | | (183,543,150) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from promissory note | | | | | 1,040,000 | | | | | | — | | |
Proceeds from Extension notes | | | | | 1,826,300 | | | | | | — | | |
Proceeds from issue of founder shares | | | | | — | | | | | | 25,000 | | |
Proceeds from sale of units, net underwriting discount paid | | | | | — | | | | | | 180,347,335 | | |
Proceeds from sale of private placement | | | | | — | | | | | | 4,536,125 | | |
Payment of offering costs | | | | | — | | | | | | (242,932) | | |
Net cash provided by financing activities | | | | | 2,866,300 | | | | | | 184,665,528 | | |
Net change in cash | | | | | (173,969) | | | | | | 664,992 | | |
Cash at beginning of period | | | | | 257,271 | | | | | | — | | |
Cash at end of period | | | | $ | 83,302 | | | | | $ | 664,992 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption | | | | $ | — | | | | | $ | 152,100,293 | | |
Re-measurement of common stock subject to redemption | | | | $ | 1,815,085 | | | | | $ | 11,648,045 | | |
Deferred underwriting fee payable | | | | $ | — | | | | | $ | 5,935,475 | | |
Offering costs charged to additional paid in capital | | | | $ | — | | | | | $ | 23,911 | | |
Offering costs charged to promissory note-related party | | | | $ | — | | | | | $ | 143,563 | | |
Initial classification of warrant liability | | | | $ | 9,781,698 | | | | | $ | 9,781,698 | | |
| | | As of June 30, 2022 (Unaudited) | | | As of December 31, 2021 (Audited) | | ||||||
Gross Proceeds | | | | $ | 182,630,000 | | | | | $ | 182,630,000 | | |
Less: | | | | | | | | | | | | | |
Proceeds allocated to public warrants | | | | | (9,542,418) | | | | | | (9,542,418) | | |
Transaction costs | | | | | (8,628,545) | | | | | | (8,628,545) | | |
Plus: | | | | | | | | | | | | | |
Reverse the cost allocation to warrants | | | | | 450,846 | | | | | | 450,846 | | |
Additional amount deposited into trust | | | | | 1,826,300 | | | | | | — | | |
Re-measurement of carrying value to redemption value | | | | | 18,649,334 | | | | | | 18,690,549 | | |
Common stock subject to possible redemption | | | | | 185,385,517 | | | | | | 183,570,432 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Denominator: weighted average number of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
Description | | | Quoted Prices in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Other Unobservable Inputs (Level 3) | | |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | $ | 183,570,432 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | $ | 5,478,900 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants | | | | $ | — | | | | | $ | — | | | | | $ | 294,848 | | |
| | | June 11, 2021 | | | June 30, 2021 | | | September 30, 2021 | | | December 31, 2021 | | ||||||||||||
| | | (Public Warrants and Private Warrants) | | | (Public Warrants and Private Warrants) | | | Private Warrants | | | Private Warrants | | ||||||||||||
Exercise price | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Share price | | | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 9.88 | | | | | $ | 9.91 | | |
Expected term (years) | | | | | 5.0 | | | | | | 5.0 | | | | | | 5.44 | | | | | | 5.12 | | |
Probability of Acquisition | | | | | 75.0% | | | | | | 80.0% | | | | | | 80.0% | | | | | | 90.0% | | |
Volatility | | | | | 18.0% | | | | | | 17.6% | | | | | | 10.9% | | | | | | 20.0% | | |
Risk-free rate | | | | | 0.81% | | | | | | 0.98% | | | | | | 1.05% | | | | | | 1.26% | | |
Dividend yield (per share) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | | Private Placement | | | Public Warrant | | | Warrant Liability | | |||||||||
Fair value as of June 11, 2021 (Initial Public Offering) | | | | $ | 227,622 | | | | | $ | 8,882,500 | | | | | $ | 9,110,122 | | |
Change in valuation inputs or other assumptions(1) | | | | | 14,153 | | | | | | 541,208 | | | | | | 555,361 | | |
Fair value as of June 30, 2021 | | | | $ | 241,775 | | | | | $ | 9,423,708 | | | | | $ | 9,665,483 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (127,919) | | | | | | (5,151,903) | | | | | | (5,259,822) | | |
Fair value as of September 30, 2021 | | | | $ | 113,856 | | | | | $ | 4,291,805 | | | | | $ | 4,405,661 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | 180,992 | | | | | | 1,187,095 | | | | | | 1,368,087 | | |
Fair value as of December 31, 2021 | | | | $ | 294,848 | | | | | $ | 5,478,900 | | | | | $ | 5,773,748 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Current | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
Deferred | | | | | — | | | | | | — | | |
Federal | | | | | 506,832 | | | | | | 100 | | |
State | | | | | — | | | | | | — | | |
Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Net income before income taxes | | | | $ | 1,143,621 | | | | | $ | (478) | | |
Income tax expenses attributable to statutory rate of 21% | | | | | 240,160 | | | | | | (100) | | |
Fair value change in warrant liability | | | | | (841,670) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 94,678 | | | | | | — | | |
Change in valuation allowance | | | | | 506,832 | | | | | | 100 | | |
Total tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Total Deferred tax asset | | | | | | | | | | | | | |
Net Operating loss | | | | $ | 507,928 | | | | | $ | — | | |
Accrued expense | | | | | — | | | | | | 100 | | |
Less: Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Net deferred tax assets | | | | | 966 | | | | | | — | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Unrealized (gain) or loss | | | | | (966) | | | | | | — | | |
Net Deferred tax assets (liabilities) | | | | | — | | | | | | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Statutory Federal income tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Fair value change in warrant liability | | | | | (73.6)% | | | | | | — | | |
Offering costs allocated to warrants | | | | | 8.3% | | | | | | — | | |
Change in valuation Allowance | | | | | 44.3% | | | | | | (21.0)% | | |
Total tax provision | | | | | 0.0% | | | | | | 0.0% | | |
| | | June 30 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | (Audited) | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 83,302 | | | | | $ | 257,271 | | |
Prepaid expense | | | | | 29,750 | | | | | | 80,169 | | |
Other receivable | | | | | 75,000 | | | | | | — | | |
Total Current Assets | | | | | 188,052 | | | | | | 337,440 | | |
Cash and Marketable Securities held in Trust Account | | | | | 185,439,396 | | | | | | 183,570,432 | | |
Total Assets | | | | $ | 185,627,448 | | | | | $ | 183,907,872 | | |
LIABILITIES AND STOCKHOLDERS’ DIFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Due to related parties | | | | $ | 40,000 | | | | | $ | — | | |
Accrued expense | | | | | 2,669,728 | | | | | | 1,740,131 | | |
Franchise tax payable | | | | | 53,879 | | | | | | 113,648 | | |
Promissory notes | | | | | 1,066,586 | | | | | | — | | |
Extension note | | | | | 1,826,300 | | | | | | — | | |
Total Current Liabilities | | | | | 5,656,493 | | | | | | 1,853,779 | | |
Warrant Liability | | | | | 1,864,265 | | | | | | 5,773,748 | | |
Deferred underwriting fees | | | | | 5,935,475 | | | | | | 5,935,475 | | |
Total Liabilities | | | | | 13,456,233 | | | | | | 13,563,002 | | |
Commitments and Contingencies (NOTE 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 shares, $0.0001 par value, at redemption value of $10.15 and $10.05 per share on June 30, 2022 and December 31, 2021, respectively | | | | | 185,385,517 | | | | | | 183,570,432 | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized; 5,019,363 issued and outstanding (excluding 18,263,000 shares subject to possible redemption) at June 30, 2022 and December 31, 2021, respectively | | | | | 502 | | | | | | 502 | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (13,214,804) | | | | | | (13,226,064) | | |
Total Stockholders’ Deficit | | | | | (13,214,302) | | | | | | (13,225,562) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 185,627,448 | | | | | $ | 183,907,872 | | |
| | | For Three Month Ended June 30 | | | For Six Months Ended June 30, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
| | | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | | ||||||||||||
Formation and operating costs | | | | $ | 902,313 | | | | | $ | 104,676 | | | | | $ | 2,044,656 | | | | | $ | 150,306 | | |
Franchise tax | | | | | 50,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | |
Loss from operation costs | | | | | (952,313) | | | | | | (104,676) | | | | | | (2,144,656) | | | | | | (150,306) | | |
Other income and expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | $ | 132,004 | | | | | $ | 2,025 | | | | | $ | 88,104 | | | | | $ | 2,025 | | |
Interest expense | | | | | (26,586) | | | | | | — | | | | | | (26,586) | | | | | | — | | |
Change in fair value of warrant liability | | | | | 615,931 | | | | | | 116,216 | | | | | | 3,909,483 | | | | | | 116,216 | | |
Non-operating expense | | | | | — | | | | | | (450,846) | | | | | | — | | | | | | (450,846) | | |
Net income (loss) | | | | $ | (230,964) | | | | | $ | (437,281) | | | | | $ | 1,826,345 | | | | | $ | (482,911) | | |
Weighted average shares outstanding of redeemable common stock | | | | | 18,263,000 | | | | | | 17,930,632 | | | | | | 18,263,000 | | | | | | 1,882,221 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
Weighted average shares outstanding of non-redeemable common stock | | | | | 5,019,363 | | | | | | 210,717 | | | | | | 5,019,363 | | | | | | 4,504,578 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 (audited) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (478) | | | | | $ | (478) | | |
Issuance of common stock to Sponsor | | | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (45,630) | | | | | | (45,630) | | |
Balance – March 31, 2021 (unaudited) | | | | | 4,887,500 | | | | | $ | 489 | | | | | $ | 24,511 | | | | | $ | (46,108) | | | | | $ | (21,108) | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,311,924) | | | | | | (18,633,267) | | |
Forfeiture of founder shares | | | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units | | | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | | | — | | | | | | 4,296,845 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (437,281) | | | | | | (437,281) | | |
Balance – June 30, 2021 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (14,795,313) | | | | | $ | (14,794,811) | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2022 (audited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,226,064) | | | | | $ | (13,225,562) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 2,057,309 | | | | | | 2,057,309 | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | 43,900 | | | | | | 43,900 | | |
Balance – March 31, 2022 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (11,124,855) | | | | | $ | (11,124,353) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | (230,964) | | | | | | (230,964) | | |
Additional amount deposited into trust ($0.10 per common stock subject to possible redemption) | | | | | — | | | | | | — | | | | | | — | | | | | | (1,826,300) | | | | | | (1,826,300) | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | (32,685) | | | | | | (32,685) | | |
Balance – June 30, 2022 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,214,804) | | | | | | (13,214,302) | | |
| | | For Six Months Ended June 30 | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (Unaudited) | | | (Unaudited) | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,826,345 | | | | | $ | (482,911) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | | (88,104) | | | | | | (2,025) | | |
Change in fair value of warrant liability | | | | | (3,909,483) | | | | | | (116,215) | | |
Offering costs allocated to warrants | | | | | — | | | | | | 450,846 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 50,419 | | | | | | (387,868) | | |
Other Receivable | | | | | (75,000) | | | | | | — | | |
Due to related parties | | | | | 40,000 | | | | | | — | | |
Accrued expenses | | | | | 929,597 | | | | | | 80,787 | | |
Franchise tax payable | | | | | (59,769) | | | | | | — | | |
Promissory note-interest | | | | | 26,586 | | | | | | — | | |
Net cash used in operating activities | | | | | (1,259,409) | | | | | | (457,386) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | (1,826,300) | | | | | | (183,543,150) | | |
Withdraw from Trust Account for Franchise tax payment | | | | | 45,440 | | | | | | — | | |
Net cash used in investing activities | | | | | (1,780,860) | | | | | | (183,543,150) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from promissory note | | | | | 1,040,000 | | | | | | — | | |
Proceeds from Extension notes | | | | | 1,826,300 | | | | | | — | | |
Proceeds from issue of founder shares | | | | | — | | | | | | 25,000 | | |
Proceeds from sale of units, net underwriting discount paid | | | | | — | | | | | | 180,347,335 | | |
Proceeds from sale of private placement | | | | | — | | | | | | 4,536,125 | | |
Payment of offering costs | | | | | — | | | | | | (242,932) | | |
Net cash provided by financing activities | | | | | 2,866,300 | | | | | | 184,665,528 | | |
Net change in cash | | | | | (173,969) | | | | | | 664,992 | | |
Cash at beginning of period | | | | | 257,271 | | | | | | — | | |
Cash at end of period | | | | $ | 83,302 | | | | | $ | 664,992 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption | | | | $ | — | | | | | $ | 152,100,293 | | |
Re-measurement of common stock subject to redemption | | | | $ | 1,815,085 | | | | | $ | 11,648,045 | | |
Deferred underwriting fee payable | | | | $ | — | | | | | $ | 5,935,475 | | |
Offering costs charged to additional paid in capital | | | | $ | — | | | | | $ | 23,911 | | |
Offering costs charged to promissory note-related party | | | | $ | — | | | | | $ | 143,563 | | |
Initial classification of warrant liability | | | | $ | 9,781,698 | | | | | $ | 9,781,698 | | |
| | | Year Ended December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Common stock | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | 1,143,620 | | | | | $ | (478) | | |
Denominator: weighted average number of common stock | | | | | 14,904,015 | | | | | | — | | |
Basic and diluted net income (loss) per common stock | | | | $ | 0.08 | | | | | $ | — | | |
Description | | | Quoted Prices in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Other Unobservable Inputs (Level 3) | | |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | $ | 183,570,432 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | $ | 5,478,900 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants | | | | $ | — | | | | | $ | — | | | | | $ | 294,848 | | |
| | | June 11, 2021 | | | June 30, 2021 | | | September 30, 2021 | | | December 31, 2021 | | ||||||||||||
| | | (Public Warrants and Private Warrants) | | | (Public Warrants and Private Warrants) | | | Private Warrants | | | Private Warrants | | ||||||||||||
Exercise price | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Share price | | | | $ | 10.00 | | | | | $ | 10.00 | | | | | $ | 9.88 | | | | | $ | 9.91 | | |
Expected term (years) | | | | | 5.0 | | | | | | 5.0 | | | | | | 5.44 | | | | | | 5.12 | | |
Probability of Acquisition | | | | | 75.0% | | | | | | 80.0% | | | | | | 80.0% | | | | | | 90.0% | | |
Volatility | | | | | 18.0% | | | | | | 17.6% | | | | | | 10.9% | | | | | | 20.0% | | |
Risk-free rate | | | | | 0.81% | | | | | | 0.98% | | | | | | 1.05% | | | | | | 1.26% | | |
Dividend yield (per share) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | | Private Placement | | | Public Warrant | | | Warrant Liability | | |||||||||
Fair value as of June 11, 2021 (Initial Public Offering) | | | | $ | 227,622 | | | | | $ | 8,882,500 | | | | | $ | 9,110,122 | | |
Change in valuation inputs or other assumptions(1) | | | | | 14,153 | | | | | | 541,208 | | | | | | 555,361 | | |
Fair value as of June 30, 2021 | | | | $ | 241,775 | | | | | $ | 9,423,708 | | | | | $ | 9,665,483 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (127,919) | | | | | | (5,151,903) | | | | | | (5,259,822) | | |
Fair value as of September 30, 2021 | | | | $ | 113,856 | | | | | $ | 4,291,805 | | | | | $ | 4,405,661 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | 180,992 | | | | | | 1,187,095 | | | | | | 1,368,087 | | |
Fair value as of December 31, 2021 | | | | $ | 294,848 | | | | | $ | 5,478,900 | | | | | $ | 5,773,748 | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Current | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | — | | | | | | — | | |
Deferred | | | | | — | | | | | | — | | |
Federal | | | | | 506,832 | | | | | | 100 | | |
State | | | | | — | | | | | | — | | |
Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Net income before income taxes | | | | $ | 1,143,621 | | | | | $ | (478) | | |
Income tax expenses attributable to statutory rate of 21% | | | | | 240,160 | | | | | | (100) | | |
Fair value change in warrant liability | | | | | (841,670) | | | | | | — | | |
Offering costs allocated to warrants | | | | | 94,678 | | | | | | — | | |
Change in valuation allowance | | | | | 506,832 | | | | | | 100 | | |
Total tax provision | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Total Deferred tax asset | | | | | | | | | | | | | |
Net Operating loss | | | | $ | 507,928 | | | | | $ | — | | |
Accrued expense | | | | | — | | | | | | 100 | | |
Less: Valuation allowance | | | | | (506,832) | | | | | | (100) | | |
Net deferred tax assets | | | | | 966 | | | | | | — | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Unrealized (gain) or loss | | | | | (966) | | | | | | — | | |
Net Deferred tax assets (liabilities) | | | | | — | | | | | | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Statutory Federal income tax rate | | | | | 21.0% | | | | | | 21.0% | | |
Fair value change in warrant liability | | | | | (73.6)% | | | | | | — | | |
Offering costs allocated to warrants | | | | | 8.3% | | | | | | — | | |
Change in valuation Allowance | | | | | 44.3% | | | | | | (21.0)% | | |
Total tax provision | | | | | 0.0% | | | | | | 0.0% | | |
| | | June 30 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | (Audited) | | ||||||
ASSETS | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash | | | | $ | 83,302 | | | | | $ | 257,271 | | |
Prepaid expense | | | | | 29,750 | | | | | | 80,169 | | |
Other receivable | | | | | 75,000 | | | | | | — | | |
Total Current Assets | | | | | 188,052 | | | | | | 337,440 | | |
Cash and Marketable Securities held in Trust Account | | | | | 185,439,396 | | | | | | 183,570,432 | | |
Total Assets | | | | $ | 185,627,448 | | | | | $ | 183,907,872 | | |
LIABILITIES AND STOCKHOLDERS’ DIFICIT | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Due to related parties | | | | $ | 40,000 | | | | | $ | — | | |
Accrued expense | | | | | 2,669,728 | | | | | | 1,740,131 | | |
Franchise tax payable | | | | | 53,879 | | | | | | 113,648 | | |
Promissory notes | | | | | 1,066,586 | | | | | | — | | |
Extension note | | | | | 1,826,300 | | | | | | — | | |
Total Current Liabilities | | | | | 5,656,493 | | | | | | 1,853,779 | | |
Warrant Liability | | | | | 1,864,265 | | | | | | 5,773,748 | | |
Deferred underwriting fees | | | | | 5,935,475 | | | | | | 5,935,475 | | |
Total Liabilities | | | | | 13,456,233 | | | | | | 13,563,002 | | |
Commitments and Contingencies (NOTE 6) | | | | | | | | | | | | | |
Common stock subject to possible redemption, 18,263,000 shares, $0.0001 par value, at redemption value of $10.15 and $10.05 per share on June 30, 2022 and December 31, 2021, respectively | | | | | 185,385,517 | | | | | | 183,570,432 | | |
Stockholders’ Deficit | | | | | | | | | | | | | |
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Common stocks, $0.0001 par value; 100,000,000 shares authorized; 5,019,363 issued and outstanding (excluding 18,263,000 shares subject to possible redemption) at June 30, 2022 and December 31, 2021, respectively | | | | | 502 | | | | | | 502 | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (13,214,804) | | | | | | (13,226,064) | | |
Total Stockholders’ Deficit | | | | | (13,214,302) | | | | | | (13,225,562) | | |
Total Liabilities and Stockholders’ Deficit | | | | $ | 185,627,448 | | | | | $ | 183,907,872 | | |
| | | For Three Month Ended June 30 | | | For Six Months Ended June 30, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
| | | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | | ||||||||||||
Formation and operating costs | | | | $ | 902,313 | | | | | $ | 104,676 | | | | | $ | 2,044,656 | | | | | $ | 150,306 | | |
Franchise tax | | | | | 50,000 | | | | | | — | | | | | | 100,000 | | | | | | — | | |
Loss from operation costs | | | | | (952,313) | | | | | | (104,676) | | | | | | (2,144,656) | | | | | | (150,306) | | |
Other income and expense: | | | | | | | | | | | | | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | $ | 132,004 | | | | | $ | 2,025 | | | | | $ | 88,104 | | | | | $ | 2,025 | | |
Interest expense | | | | | (26,586) | | | | | | — | | | | | | (26,586) | | | | | | — | | |
Change in fair value of warrant liability | | | | | 615,931 | | | | | | 116,216 | | | | | | 3,909,483 | | | | | | 116,216 | | |
Non-operating expense | | | | | — | | | | | | (450,846) | | | | | | — | | | | | | (450,846) | | |
Net income (loss) | | | | $ | (230,964) | | | | | $ | (437,281) | | | | | $ | 1,826,345 | | | | | $ | (482,911) | | |
Weighted average shares outstanding of redeemable common stock | | | | | 18,263,000 | | | | | | 17,930,632 | | | | | | 18,263,000 | | | | | | 1,882,221 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
Weighted average shares outstanding of non-redeemable common stock | | | | | 5,019,363 | | | | | | 210,717 | | | | | | 5,019,363 | | | | | | 4,504,578 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 (audited) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (478) | | | | | $ | (478) | | |
Issuance of common stock to Sponsor | | | | | 4,887,500 | | | | | | 489 | | | | | | 24,511 | | | | | | — | | | | | | 25,000 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (45,630) | | | | | | (45,630) | | |
Balance – March 31, 2021 (unaudited) | | | | | 4,887,500 | | | | | $ | 489 | | | | | $ | 24,511 | | | | | $ | (46,108) | | | | | $ | (21,108) | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | (4,321,343) | | | | | | (14,311,924) | | | | | | (18,633,267) | | |
Forfeiture of founder shares | | | | | (321,750) | | | | | | (32) | | | | | | 32 | | | | | | — | | | | | | — | | |
Sale of Private Units | | | | | 453,613 | | | | | | 45 | | | | | | 4,296,800 | | | | | | — | | | | | | 4,296,845 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | (437,281) | | | | | | (437,281) | | |
Balance – June 30, 2021 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (14,795,313) | | | | | $ | (14,794,811) | | |
| | | Common Stock | | | Additional Paid-In Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2022 (audited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,226,064) | | | | | $ | (13,225,562) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | 2,057,309 | | | | | | 2,057,309 | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | 43,900 | | | | | | 43,900 | | |
Balance – March 31, 2022 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (11,124,855) | | | | | $ | (11,124,353) | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | (230,964) | | | | | | (230,964) | | |
Additional amount deposited into trust ($0.10 per common stock subject to possible redemption) | | | | | — | | | | | | — | | | | | | — | | | | | | (1,826,300) | | | | | | (1,826,300) | | |
Re-measurement for common stock to redemption amount | | | | | — | | | | | | — | | | | | | — | | | | | | (32,685) | | | | | | (32,685) | | |
Balance – June 30, 2022 (unaudited) | | | | | 5,019,363 | | | | | $ | 502 | | | | | $ | — | | | | | $ | (13,214,804) | | | | | | (13,214,302) | | |
| | | For Six Months Ended June 30 | | |||||||||
| | | 2022 | | | 2021 | | ||||||
| | | (Unaudited) | | | (Unaudited) | | ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 1,826,345 | | | | | $ | (482,911) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Realized and unrealized gain from marketable securities held in Trust Account | | | | | (88,104) | | | | | | (2,025) | | |
Change in fair value of warrant liability | | | | | (3,909,483) | | | | | | (116,215) | | |
Offering costs allocated to warrants | | | | | — | | | | | | 450,846 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 50,419 | | | | | | (387,868) | | |
Other Receivable | | | | | (75,000) | | | | | | — | | |
Due to related parties | | | | | 40,000 | | | | | | — | | |
Accrued expenses | | | | | 929,597 | | | | | | 80,787 | | |
Franchise tax payable | | | | | (59,769) | | | | | | — | | |
Promissory note-interest | | | | | 26,586 | | | | | | — | | |
Net cash used in operating activities | | | | | (1,259,409) | | | | | | (457,386) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | (1,826,300) | | | | | | (183,543,150) | | |
Withdraw from Trust Account for Franchise tax payment | | | | | 45,440 | | | | | | — | | |
Net cash used in investing activities | | | | | (1,780,860) | | | | | | (183,543,150) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from promissory note | | | | | 1,040,000 | | | | | | — | | |
Proceeds from Extension notes | | | | | 1,826,300 | | | | | | — | | |
Proceeds from issue of founder shares | | | | | — | | | | | | 25,000 | | |
Proceeds from sale of units, net underwriting discount paid | | | | | — | | | | | | 180,347,335 | | |
Proceeds from sale of private placement | | | | | — | | | | | | 4,536,125 | | |
Payment of offering costs | | | | | — | | | | | | (242,932) | | |
Net cash provided by financing activities | | | | | 2,866,300 | | | | | | 184,665,528 | | |
Net change in cash | | | | | (173,969) | | | | | | 664,992 | | |
Cash at beginning of period | | | | | 257,271 | | | | | | — | | |
Cash at end of period | | | | $ | 83,302 | | | | | $ | 664,992 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Initial classification of common stock subject to possible redemption | | | | $ | — | | | | | $ | 152,100,293 | | |
Re-measurement of common stock subject to redemption | | | | $ | 1,815,085 | | | | | $ | 11,648,045 | | |
Deferred underwriting fee payable | | | | $ | — | | | | | $ | 5,935,475 | | |
Offering costs charged to additional paid in capital | | | | $ | — | | | | | $ | 23,911 | | |
Offering costs charged to promissory note-related party | | | | $ | — | | | | | $ | 143,563 | | |
Initial classification of warrant liability | | | | $ | 9,781,698 | | | | | $ | 9,781,698 | | |
| | | As of June 30, 2022 (Unaudited) | | | As of December 31, 2021 (Audited) | | ||||||
Gross Proceeds | | | | $ | 182,630,000 | | | | | $ | 182,630,000 | | |
Less: | | | | | | | | | | | | | |
Proceeds allocated to public warrants | | | | | (9,542,418) | | | | | | (9,542,418) | | |
Transaction costs | | | | | (8,628,545) | | | | | | (8,628,545) | | |
Plus: | | | | | | | | | | | | | |
Reverse the cost allocation to warrants | | | | | 450,846 | | | | | | 450,846 | | |
Additional amount deposited into trust | | | | | 1,826,300 | | | | | | — | | |
Re-measurement of carrying value to redemption value | | | | | 18,649,334 | | | | | | 18,690,549 | | |
Common stock subject to possible redemption | | | | | 185,385,517 | | | | | | 183,570,432 | | |
| | | For the three months ended June 30 | | | For the six months ended June 30 | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
Redeemable common stock | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | (181,170) | | | | | $ | (432,202) | | | | | $ | 1,432,611 | | | | | $ | (142,316) | | |
Denominator: weighted average number of common stock | | | | | 18,263,000 | | | | | | 17,930,632 | | | | | | 18,263,000 | | | | | | 1,882,221 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
Non-redeemable common stock | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net income (loss) allocable to common stock subject to possible redemption | | | | $ | (49,793) | | | | | $ | (5,079) | | | | | $ | 393,735 | | | | | $ | (340,595) | | |
Denominator: weighted average number of common stock | | | | | 5,019,363 | | | | | | 210,717 | | | | | | 5,019,363 | | | | | | 4,504,578 | | |
Basic and diluted net income (loss) per common stock | | | | $ | (0.01) | | | | | $ | (0.02) | | | | | $ | 0.08 | | | | | $ | (0.08) | | |
Description | | | Quoted Prices in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Other Unobservable Inputs (Level 3) | | |||||||||
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | $ | 185,439,396 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | $ | 1,734,985 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants | | | | $ | — | | | | | $ | — | | | | | $ | 129,280 | | |
Description | | | Quoted Prices in Active Markets (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Other Unobservable Inputs (Level 3) | | |||||||||
| | | (Audited) | | | (Audited) | | | (Audited) | | |||||||||
Asset: | | | | | | | | | | | | | | | | | | | |
Marketable securities held in Trust Account | | | | $ | 183,570,432 | | | | | $ | — | | | | | $ | — | | |
Warrant Liabilities: | | | | | | | | | | | | | | | | | | | |
Public Warrants | | | | $ | 5,478,900 | | | | | $ | — | | | | | $ | — | | |
Private Placement Warrants | | | | $ | — | | | | | $ | — | | | | | $ | 294,848 | | |
| | | June 11, 2021 | | | December 31, 2021 (Audited) | | | June 30, 2022 (Unaudited) | | |||||||||
| | | (Public Warrants and Private Warrants) | | | Private Warrants | | | Private Warrants | | |||||||||
Exercise price | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Share price | | | | $ | 10.00 | | | | | $ | 9.91 | | | | | $ | 10.09 | | |
Expected term (years) | | | | | 5.0 | | | | | | 5.12 | | | | | | 5.20 | | |
Probability of Acquisition | | | | | 75.0% | | | | | | 90.0% | | | | | | 70.0% | | |
Volatility | | | | | 18.0% | | | | | | 20.0% | | | | | | 7.6% | | |
Risk-free rate | | | | | 0.81% | | | | | | 1.26% | | | | | | 2.97% | | |
Dividend yield (per share) | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
| | | Private Warrant | | | Public Warrant | | | Warrant Liability | | |||||||||
Fair value as of June 11, 2021 (Initial Public Offering) | | | | $ | 227,622 | | | | | $ | 8,882,500 | | | | | $ | 9,110,122 | | |
Change in valuation inputs or other assumptions(1) | | | | | 14,153 | | | | | | 541,208 | | | | | | 555,361 | | |
Fair value as of June 30, 2021 | | | | $ | 241,775 | | | | | $ | 9,423,708 | | | | | $ | 9,665,483 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (127,919) | | | | | | (5,151,903) | | | | | | (5,259,822) | | |
Fair value as of September 30, 2021 | | | | $ | 113,856 | | | | | $ | 4,291,805 | | | | | $ | 4,405,661 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | 180,992 | | | | | | 1,187,095 | | | | | | 1,368,087 | | |
Fair value as of December 31, 2021 | | | | $ | 294,848 | | | | | $ | 5,478,900 | | | | | $ | 5,773,748 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (97,527) | | | | | | (3,196,025) | | | | | | (3,293,552) | | |
Fair value as of March 31, 2022 (unaudited) | | | | $ | 197,321 | | | | | $ | 2,282,875 | | | | | $ | 2,480,196 | | |
Change in valuation inputs or other assumptions(1)(2) | | | | | (68,041) | | | | | | (547,890) | | | | | | (615,931) | | |
Fair value as of June 30, 2022 (unaudited) | | | | $ | 129,280 | | | | | $ | 1,734,985 | | | | | $ | 1,864,265 | | |
| | | | | F-45 | | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-46 | | | |
| | | | | F-47 | | | |
| | | | | F-48 | | | |
| | | | | F-49 | | | |
| | | | | F-50 | | |
| | | |
| | | 2022 | | | 2021 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 4,744 | | | | | $ | 5,731 | | |
Accounts receivable, net of allowance for doubtful accounts of $388 and $696, at February 28, 2022 and February 28, 2021, respectively | | | | | 15,684 | | | | | | 19,160 | | |
Inventories, net (Note 3) | | | | | 86,090 | | | | | | 75,705 | | |
Prepaid expenses and other current assets | | | | | 9,858 | | | | | | 9,565 | | |
Total current assets | | | | | 116,376 | | | | | | 110,161 | | |
Property, plant and equipment, net (Note 4) | | | | | 31,593 | | | | | | 34,649 | | |
Intangible assets, net (Note 5) | | | | | 5,065 | | | | | | 5,741 | | |
Deferred income tax asset (Note 9) | | | | | 1,965 | | | | | | 1,635 | | |
Other assets | | | | | 4,315 | | | | | | 4,426 | | |
Total assets | | | | $ | 159,314 | | | | | $ | 156,612 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Current portion long-term debt (Note 6) | | | | $ | 941 | | | | | $ | 1,843 | | |
Accounts payable – trade | | | | | 34,957 | | | | | | 29,665 | | |
Accounts payable with company under common control | | | | | 538 | | | | | | 3,399 | | |
Accrued payroll | | | | | 241 | | | | | | 2,241 | | |
Income tax payable | | | | | — | | | | | | 81 | | |
Sales allowance accrued expenses | | | | | 889 | | | | | | 1,893 | | |
Deferred revenue | | | | | 1,615 | | | | | | 2,215 | | |
Other accrued expenses | | | | | 20,676 | | | | | | 21,512 | | |
Total current liabilities | | | | | 59,857 | | | | | | 62,850 | | |
Long-term debt, net (Note 6) | | | | | 68,222 | | | | | | 54,981 | | |
Deferred income tax liability (Note 9) | | | | | 1,156 | | | | | | 498 | | |
Other long-term liabilities | | | | | 9,268 | | | | | | 15,873 | | |
Total liabilities | | | | | 138,503 | | | | | | 134,201 | | |
Commitments and contingencies (Note 12) | | | | | | | | | | | | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, par value $.001 per share, 50,000 issued and outstanding | | | | | — | | | | | | — | | |
Series A preferred stock, par value $.001 per share, 10,000 issued and outstanding ($1 per share liquidation value) | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 107,585 | | | | | | 107,585 | | |
Accumulated deficit | | | | | (105,640) | | | | | | (103,678) | | |
Accumulated other comprehensive income: | | | | | | | | | | | | | |
Foreign currency translation | | | | | 18,866 | | | | | | 18,504 | | |
Total shareholders’ equity | | | | | 20,811 | | | | | | 22,411 | | |
Total liabilities and shareholders’ equity | | | | $ | 159,314 | | | | | $ | 156,612 | | |
| | | 2022 | | | 2021 | | ||||||
Net sales | | | | $ | 308,718 | | | | | $ | 334,679 | | |
Cost of goods sold | | | | | 209,955 | | | | | | 207,565 | | |
Gross profit | | | | | 98,763 | | | | | | 127,114 | | |
Operating expenses | | | | | | | | | | | | | |
Direct marketing expense | | | | | 41,446 | | | | | | 57,245 | | |
Selling and marketing | | | | | 13,471 | | | | | | 16,595 | | |
General and administration | | | | | 36,949 | | | | | | 35,560 | | |
Management fees | | | | | 502 | | | | | | 798 | | |
Restructuring expenses (see Note 8) | | | | | 75 | | | | | | 7,272 | | |
| | | | | 92,443 | | | | | | 117,470 | | |
Income from operations before other income (expense) | | | | | 6,320 | | | | | | 9,644 | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | | (5,650) | | | | | | (5,880) | | |
Foreign exchange gain (loss) | | | | | (1,057) | | | | | | 1,126 | | |
Other income (expense), net | | | | | 112 | | | | | | (243) | | |
| | | | | (6,595) | | | | | | (4,997) | | |
Income (loss) before income tax expense | | | | | (275) | | | | | | 4,647 | | |
Income tax expense | | | | | 1,687 | | | | | | 433 | | |
Net income (loss) | | | | | (1,962) | | | | | | 4,214 | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Foreign currency translation adjustment | | | | | 362 | | | | | | (289) | | |
Loss on foreign currency contracts | | | | | — | | | | | | (176) | | |
| | | | | 362 | | | | | | (465) | | |
Comprehensive income (loss) | | | | $ | (1,600) | | | | | $ | 3,749 | | |
Weighted average common shares outstanding | | | | | 50 | | | | | | 50 | | |
Basic earnings per common share | | | | $ | (39) | | | | | $ | 84 | | |
Diluted earnings per common share | | | | $ | (39) | | | | | $ | 84 | | |
| | | Common Stock | | | Preferred Stock | | | Additional Paid- in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||
Balance, February, 29, 2020 | | | | $ | — | | | | | $ | — | | | | | $ | 107,858 | | | | | $ | (107,892) | | | | | $ | 18,969 | | | | | $ | 18,662 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (289) | | | | | | (289) | | |
Loss on foreign currency contracts | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (176) | | | | | | (176) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 4,214 | | | | | | — | | | | | | 4,214 | | |
Balance, February 28, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | 107,585 | | | | | $ | (103,678) | | | | | $ | 18,504 | | | | | $ | 22,411 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 362 | | | | | | 362 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (1,962) | | | | | | — | | | | | | (1,962) | | |
Balance, February 28, 2022 | | | | $ | — | | | | | $ | — | | | | | $ | 107,585 | | | | | $ | (105,640) | | | | | $ | 18,866 | | | | | $ | 20,811 | | |
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | (1,962) | | | | | $ | 4,214 | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and intangible and other asset amortization | | | | | 7,045 | | | | | | 7,065 | | |
Provision for doubtful accounts | | | | | (308) | | | | | | 246 | | |
(Gain) loss on sale of property, plant and equipment | | | | | 14 | | | | | | (21) | | |
Amortization of deferred gain on sale-leaseback | | | | | (409) | | | | | | (367) | | |
Amortization of deferred financing fees | | | | | 722 | | | | | | 820 | | |
Deferred income taxes | | | | | 327 | | | | | | 31 | | |
Increase (decrease) in cash from changes in operating | | | | | | | | | | | | | |
assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 4,665 | | | | | | 835 | | |
Inventories | | | | | (11,611) | | | | | | 10,774 | | |
Prepaid expenses and other assets | | | | | 1,130 | | | | | | 1,356 | | |
Accounts payable | | | | | 2,715 | | | | | | (7,100) | | |
Accrued expenses and other liabilities | | | | | (11,475) | | | | | | 7,837 | | |
Net cash provided by (used in) operating activities | | | | | (9,147) | | | | | | 25,690 | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Proceeds from sale of assets | | | | | — | | | | | | 12 | | |
Purchase of machinery and equipment | | | | | (3,370) | | | | | | (4,137) | | |
Net cash (used in) investing activities | | | | | (3,370) | | | | | | (4,125) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net (payments) proceeds on line of credit | | | | | 17,054 | | | | | | (19,297) | | |
Proceeds from German Euro loan | | | | | — | | | | | | 610 | | |
Principal payments on capital lease obligations | | | | | (1,114) | | | | | | (1,991) | | |
Principal payments on long-term debt | | | | | (3,499) | | | | | | (483) | | |
Loan issuance costs | | | | | (629) | | | | | | (437) | | |
Net cash (used in) provided by financing activities | | | | | 11,812 | | | | | | (21,598) | | |
Net change in cash | | | | | (705) | | | | | | (33) | | |
Effect of exchange rate changes on cash | | | | | (282) | | | | | | 521 | | |
Cash at beginning of the period | | | | | 5,731 | | | | | | 5,243 | | |
Cash at end of the period | | | | $ | 4,744 | | | | | $ | 5,731 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year: | | | | | | | | | | | | | |
Interest | | | | $ | 6,133 | | | | | $ | 4,737 | | |
Income taxes | | | | | 518 | | | | | | 676 | | |
Supplemental disclosures of non-cash items: | | | | | | | | | | | | | |
Acquired capital lease | | | | $ | — | | | | | $ | 957 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Balance at beginning of year | | | | $ | 696 | | | | | $ | 450 | | |
Provisions charged to expense | | | | | 40 | | | | | | 366 | | |
Net Charges and Recoveries | | | | | (348) | | | | | | (120) | | |
Balance at end of year | | | | $ | 388 | | | | | $ | 696 | | |
| | | Estimated Useful Lives (Years) | |
Building and improvements | | | 40 | |
Machinery and equipment | | | 7 to 10 | |
Vehicles | | | 5 | |
Furniture and fixtures | | | 5 to 7 | |
Data processing equipment and software | | | 3 to 5 | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Balance at beginning of year | | | | $ | 2,310 | | | | | $ | 875 | | |
Provisions charged to expense | | | | | 2,073 | | | | | | 3,813 | | |
Credit memos issued | | | | | (2,090) | | | | | | (2,378) | | |
Balance at end of year | | | | $ | 2,293 | | | | | $ | 2,310 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Inventory on FIFO basis | | | | | | | | | | | | | |
Raw materials | | | | $ | 24,356 | | | | | $ | 21,100 | | |
Work in process | | | | | 4,577 | | | | | | 4,376 | | |
Finished goods | | | | | 64,714 | | | | | | 58,554 | | |
| | | | $ | 93,647 | | | | | $ | 84,030 | | |
Slow-moving, damaged, and excess inventory reserve | | | | | (3,927) | | | | | | (4,112) | | |
Lower of cost or net realizable value reserve | | | | | (3,630) | | | | | | (4,213) | | |
Inventories, net | | | | $ | 86,090 | | | | | $ | 75,705 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Balance at beginning of year | | | | $ | (8,325) | | | | | $ | (8,507) | | |
Costs charged to expense | | | | | 94 | | | | | | (1,420) | | |
Inventory write-off | | | | | 674 | | | | | | 1,602 | | |
Balance at end of year | | | | $ | (7,557) | | | | | $ | (8,325) | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Land | | | | $ | 2,839 | | | | | $ | 2,839 | | |
Buildings and improvements | | | | | 8,169 | | | | | | 7,613 | | |
Machinery and equipment | | | | | 24,089 | | | | | | 24,050 | | |
Vehicles | | | | | 30 | | | | | | 30 | | |
Furniture and fixtures | | | | | 3,900 | | | | | | 3,613 | | |
Data processing equipment and software | | | | | 21,390 | | | | | | 19,952 | | |
Construction in progress | | | | | 1,070 | | | | | | 1,764 | | |
| | | | | 61,487 | | | | | | 59,861 | | |
Less, accumulated depreciation | | | | | (29,893) | | | | | | (25,212) | | |
Property, plant and equipment, net | | | | $ | 31,593 | | | | | $ | 34,649 | | |
| | | Gross Carrying Amount | | | Accumulated Amortization | | | Impairment | | | Net Asset | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Trade names – Candle-lite | | | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite | | | | | 2,574 | | | | | | (1,491) | | | | | | — | | | | | | 1,083 | | |
Customer relationships | | | | | 11,773 | | | | | | (4,170) | | | | | | (4,285) | | | | | | 3,318 | | |
Patents | | | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark | | | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,165 | | | | | $ | (5,815) | | | | | $ | (4,285) | | | | | $ | 5,065 | | |
| | | Gross Carrying Amount | | | Accumulated Amortization | | | Impairment | | | Net Asset | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Trade names – Candle-lite | | | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite | | | | | 2,574 | | | | | | (1,233) | | | | | | — | | | | | | 1,341 | | |
Customer relationships | | | | | 11,773 | | | | | | (3,752) | | | | | | (4,285) | | | | | | 3,736 | | |
Patents | | | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark | | | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,165 | | | | | $ | (5,139) | | | | | $ | (4,285) | | | | | $ | 5,741 | | |
| 2023 | | | | $ | 677 | | |
| 2024 | | | | | 677 | | |
| 2025 | | | | | 677 | | |
| 2026 | | | | | 677 | | |
| 2027 | | | | | 677 | | |
| Thereafter | | | | | 1,018 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
5.36% term note | | | | $ | 11,355 | | | | | $ | 11,602 | | |
Term note payable A | | | | | 10,050 | | | | | | 11,750 | | |
Term note payable B | | | | | 10,949 | | | | | | 12,500 | | |
Revolver – (European) | | | | | 1,862 | | | | | | 50 | | |
Revolver – (US) | | | | | 34,779 | | | | | | 19,619 | | |
Covid Relief | | | | | 491 | | | | | | 605 | | |
Capital Lease | | | | | 932 | | | | | | 2,046 | | |
| | | | | 70,418 | | | | | | 58,172 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees | | | | | (1,255) | | | | | | (1,348) | | |
Current maturities – long-term debt | | | | | (941) | | | | | | (1,843) | | |
| | | | $ | 68,222 | | | | | $ | 54,981 | | |
| 2023 | | | | $ | 941 | | |
| 2024 | | | | | 58,114 | | |
| 2025 | | | | | 11,195 | | |
| 2026 | | | | | 168 | | |
| 2027 | | | | | — | | |
| Total | | | | $ | 70,418 | | |
| 2023 | | | | $ | 343 | | |
| 2024 | | | | | 342 | | |
| 2025 | | | | | 254 | | |
| 2026 | | | | | 100 | | |
| 2027 | | | | | — | | |
| Total minimum lease payments | | | | $ | 1,039 | | |
| Less amounts representing interest | | | | | (107) | | |
| Less current portion of lease obligations | | | | | (343) | | |
| Total lease obligations net of current | | | | $ | 589 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (In thousands) | | |||||||||
Severance and related costs | | | | $ | (22) | | | | | $ | 4,265 | | |
Contract cancellations | | | | | — | | | | | | 896 | | |
Legal expenses | | | | | 174 | | | | | | 546 | | |
Lease exit costs | | | | | — | | | | | | 504 | | |
Other | | | | | (77) | | | | | | 1,061 | | |
Total restructuring costs | | | | $ | 75 | | | | | $ | 7,272 | | |
| | | February 28, 2021 | | | Charges | | | Usage | | | February 28, 2022 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Severance and related costs | | | | $ | 2,666 | | | | | $ | (22) | | | | | $ | (2,600) | | | | | $ | 44 | | |
Contract cancellations | | | | | 123 | | | | | | — | | | | | | (123) | | | | | | — | | |
Legal expenses | | | | | 104 | | | | | | 174 | | | | | | (246) | | | | | | 32 | | |
Lease exit costs | | | | | 476 | | | | | | — | | | | | | (476) | | | | | | — | | |
Other | | | | | 4 | | | | | | (77) | | | | | | 73 | | | | | | — | | |
Total | | | | $ | 3,373 | | | | | $ | 75 | | | | | $ | (3,372) | | | | | $ | 76 | | |
| | | February 29, 2020 | | | Charges | | | Usage | | | February 28, 2021 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Severance and related costs | | | | $ | — | | | | | $ | 4,265 | | | | | $ | (1,599) | | | | | $ | 2,666 | | |
Contract cancellations | | | | | — | | | | | | 896 | | | | | | (773) | | | | | | 123 | | |
Legal expenses | | | | | — | | | | | | 546 | | | | | | (442) | | | | | | 104 | | |
Lease exit costs | | | | | — | | | | | | 504 | | | | | | (28) | | | | | | 476 | | |
Other | | | | | — | | | | | | 1,061 | | | | | | (1.057) | | | | | | 4 | | |
Total | | | | $ | — | | | | | $ | 7,272 | | | | | $ | (3,899) | | | | | $ | 3,373 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
United States | | | | $ | (4,077) | | | | | $ | 11,169 | | |
Foreign | | | | | 3,802 | | | | | | (6,522) | | |
Income (loss) before income tax expense | | | | $ | (275) | | | | | $ | 4,647 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Current income tax expense (benefit): | | | | | | | | | | | | | |
Federal | | | | $ | — | | | | | $ | — | | |
State | | | | | 76 | | | | | | 55 | | |
Foreign | | | | | 1,284 | | | | | | 310 | | |
| | | | | 1,360 | | | | | | 365 | | |
Deferred income tax expense (benefit): | | | | | | | | | | | | | |
Federal | | | | | — | | | | | | — | | |
State | | | | | — | | | | | | — | | |
Foreign | | | | | 327 | | | | | | 68 | | |
| | | | | 327 | | | | | | 68 | | |
Income tax expense | | | | $ | 1,687 | | | | | $ | 433 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss | | | | $ | 29,491 | | | | | $ | 28,480 | | |
Basis difference on investment | | | | | 27,461 | | | | | | 27,754 | | |
Accrued expenses and other | | | | | 5,398 | | | | | | 5,412 | | |
Deferred gain on sale of Tilburg | | | | | 1,855 | | | | | | 3,785 | | |
Allowance for doubtful accounts | | | | | 59 | | | | | | 1,489 | | |
Interest expense limitation | | | | | 1,549 | | | | | | 1,450 | | |
Deferred tax assets | | | | | 65,813 | | | | | | 68,370 | | |
Valuation allowance | | | | | (56,541) | | | | | | (55,620) | | |
| | | | | 9,272 | | | | | | 12,750 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Inventory reserves | | | | | (528) | | | | | | (795) | | |
Prepaid expenses | | | | | (555) | | | | | | (727) | | |
Depreciation | | | | | (6,131) | | | | | | (6,396) | | |
Amortization of intangibles | | | | | (1,249) | | | | | | (3,696) | | |
| | | | | (8,463) | | | | | | (11,614) | | |
Net deferred tax assets | | | | $ | 809 | | | | | $ | 1,136 | | |
| | | 2022 | | | 2021 | | ||||||
Tax at statutory rate | | | | $ | (108) | | | | | $ | 944 | | |
Tax effect of: | | | | | | | | | | | | | |
Change in valuation allowance | | | | | 921 | | | | | | (425) | | |
PPP loan forgiveness | | | | | — | | | | | | (2,046) | | |
Switzerland pension and statutory reserves | | | | | — | | | | | | 213 | | |
State income taxes | | | | | 46 | | | | | | 383 | | |
Return to provision | | | | | 526 | | | | | | 154 | | |
Foreign tax rate differential | | | | | (585) | | | | | | 1,027 | | |
Foreign dividend and subpart F income | | | | | 124 | | | | | | 204 | | |
Change in statutory rate | | | | | (55) | | | | | | — | | |
Transaction Costs | | | | | 598 | | | | | | — | | |
State Rate Change | | | | | 242 | | | | | | — | | |
Other | | | | | (22) | | | | | | (21) | | |
| | | | $ | 1,687 | | | | | $ | 433 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Changes in benefit obligation | | | | | | | | | | | | | |
Benefit obligation at beginning of year | | | | $ | 6,640 | | | | | $ | 6,801 | | |
Interest cost | | | | | 10 | | | | | | — | | |
Service cost | | | | | 384 | | | | | | 426 | | |
Contributions by plan participants | | | | | 87 | | | | | | 90 | | |
Benefits paid | | | | | (242) | | | | | | (756) | | |
Others | | | | | — | | | | | | — | | |
Actuarial (gains) / losses | | | | | (1,094) | | | | | | (346) | | |
Currency translation | | | | | (66) | | | | | | 425 | | |
Benefit obligation at end of year | | | | $ | 5,719 | | | | | $ | 6,640 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Changes in plan assets | | | | | | | | | | | | | |
Fair value of plan assets at beginning of year | | | | $ | 5,034 | | | | | $ | 5,200 | | |
Actual return on plan assets | | | | | 60 | | | | | | (103) | | |
Contributions by employer | | | | | 268 | | | | | | 279 | | |
Contributions by plan participants | | | | | 86 | | | | | | 90 | | |
Benefits paid | | | | | (241) | | | | | | (756) | | |
Others | | | | | — | | | | | | — | | |
Currency translation | | | | | (50) | | | | | | 324 | | |
Fair value of plan assets at end of year | | | | $ | 5,157 | | | | | $ | 5,034 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Funded status | | | | | | | | | | | | | |
Noncurrent liabilities | | | | $ | 560 | | | | | $ | 1,606 | | |
Net amounts recognized on the consolidated balance sheets | | | | $ | 560 | | | | | $ | 1,606 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Projected benefit obligation | | | | $ | 5,719 | | | | | $ | 6,640 | | |
Accumulated benefit obligation | | | | $ | 5,637 | | | | | $ | 6,514 | | |
Fair value of plan assets | | | | $ | 5,157 | | | | | $ | 5,034 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Equity Instruments | | | | $ | 1,812 | | | | | $ | 1,518 | | |
Debit Instruments | | | | $ | 1,791 | | | | | $ | 2,122 | | |
Properties | | | | $ | 1,257 | | | | | $ | 1,103 | | |
Liquid assets | | | | $ | 149 | | | | | $ | 146 | | |
Others | | | | $ | 148 | | | | | $ | 145 | | |
Total | | | | $ | 5,157 | | | | | $ | 5,034 | | |
| | | 2022 | | | 2021 | |
Discount rates | | | 0.15% | | | 0.15% | |
Rates of compensation increase | | | 1.00% | | | 1.00% | |
Expected long-term rates of return on plan assets | | | 1.50% | | | 1.50% | |
Mortality tables | | | BVG2020 GT | | | BVG 2015 GT | |
| 2023 | | | | $ | 118 | | |
| 2024 | | | | | 270 | | |
| 2025 | | | | | 83 | | |
| 2026 | | | | | 109 | | |
| 2027 | | | | | 133 | | |
| Next 5 years | | | | | 554 | | |
| 2023 | | | | $ | 3,332 | | |
| 2024 | | | | | 3,060 | | |
| 2025 | | | | | 2,555 | | |
| 2026 | | | | | 2,289 | | |
| 2027 | | | | | 1,795 | | |
| Thereafter | | | | | 5,576 | | |
| | | | | $ | 18,607 | | |
| | | FY 2022 | | |||||||||||||||||||||||||||||||||
| | | Candle- Lite | | | PartyLite | | | Combined | | | Corporate | | | Eliminations | | | Consolidated | | ||||||||||||||||||
Sales to external customers | | | | $ | 180,746 | | | | | | 127,972 | | | | | | 308,718 | | | | | | — | | | | | | — | | | | | $ | 308,718 | | |
Intersegment sales | | | | $ | 20,975 | | | | | | — | | | | | | 20,975 | | | | | | — | | | | | | (20,975) | | | | | $ | — | | |
Gross Profit | | | | $ | 22,771 | | | | | | 75,992 | | | | | | 98,763 | | | | | | — | | | | | | — | | | | | $ | 98,763 | | |
Depreciation and amortization exp. | | | | $ | 2,740 | | | | | | 4,305 | | | | | | 7,045 | | | | | | — | | | | | | — | | | | | $ | 7,045 | | |
Interest expense | | | | $ | 5,454 | | | | | | 196 | | | | | | 5,650 | | | | | | — | | | | | | — | | | | | $ | 5,650 | | |
Income tax expense (benefit) | | | | $ | 124 | | | | | | (815) | | | | | | (691) | | | | | | 2,378 | | | | | | — | | | | | $ | 1,687 | | |
Net income (loss) | | | | $ | 5,268 | | | | | | 2,434 | | | | | | 7,703 | | | | | | (9,663) | | | | | | — | | | | | $ | (1,962) | | |
Total assets | | | | $ | 165,767 | | | | | | 69,910 | | | | | | 235,677 | | | | | | 8,110 | | | | | | (84,473) | | | | | $ | 159,314 | | |
Capital expenditures | | | | $ | 1,832 | | | | | | 1,538 | | | | | | 3,370 | | | | | | — | | | | | | — | | | | | $ | 3,370 | | |
| | | FY 2021 | | |||||||||||||||||||||||||||||||||
| | | Candle- Lite | | | PartyLite | | | Combined | | | Corporate | | | Eliminations | | | Consolidated | | ||||||||||||||||||
Sales to external customers | | | | | 170,931 | | | | | | 163,748 | | | | | | 334,679 | | | | | | — | | | | | | — | | | | | | 334,679 | | |
Intersegment sales | | | | | 24,621 | | | | | | — | | | | | | 24,621 | | | | | | — | | | | | | (24,621) | | | | | | — | | |
Gross Profit | | | | | 31,792 | | | | | | 95,322 | | | | | | 127,114 | | | | | | — | | | | | | — | | | | | | 127,114 | | |
Depreciation and amortization expense | | | | | 2,643 | | | | | | 4,422 | | | | | | 7,065 | | | | | | — | | | | | | — | | | | | | 7,065 | | |
Interest expense | | | | | 5,461 | | | | | | 419 | | | | | | 5,880 | | | | | | — | | | | | | — | | | | | | 5,880 | | |
Income tax expense (benefit) | | | | | 51 | | | | | | 634 | | | | | | 685 | | | | | | (252) | | | | | | — | | | | | | 433 | | |
Net income (loss) | | | | | 15,930 | | | | | | (5,881) | | | | | | 10,049 | | | | | | (5,835) | | | | | | — | | | | | | 4,214 | | |
Total assets | | | | | 144,503 | | | | | | 67,037 | | | | | | 211,540 | | | | | | (1,541) | | | | | | (53,387) | | | | | | 156,612 | | |
Capital expenditures | | | | | 1,322 | | | | | | 2,815 | | | | | | 4,137 | | | | | | — | | | | | | — | | | | | | 4,137 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Net sales to external customers | | | | | | | | | | | | | |
United States | | | | $ | 190,179 | | | | | $ | 188,949 | | |
Germany | | | | | 46,786 | | | | | | 47,777 | | |
France | | | | | 27,611 | | | | | | 31,053 | | |
Other foreign countries | | | | | 44,142 | | | | | | 66,900 | | |
| | | | $ | 308,718 | | | | | $ | 334,679 | | |
| | | 2022 | | | 2021 | | ||||||
| | | (in thousands) | | |||||||||
Long-lived assets | | | | | | | | | | | | | |
United States | | | | $ | 30,890 | | | | | $ | 33,624 | | |
Foreign countries | | | | | 703 | | | | | | 1,025 | | |
| | | | $ | 31,593 | | | | | $ | 34,649 | | |
| | | As of and for the Year Ended February 28, 2022 | | |||||||||||||||
| | | As Reported Under LIFO | | | As Adjusted Under FIFO | | | Effect of Change | | |||||||||
Cost of goods sold | | | | $ | 210,192 | | | | | $ | 209,955 | | | | | $ | 237 | | |
Net income | | | | | (2,199) | | | | | | (1,962) | | | | | | 237 | | |
Inventory | | | | | 85,702 | | | | | | 86,090 | | | | | | 388 | | |
Total assets | | | | | 158,926 | | | | | | 159,314 | | | | | | 388 | | |
Retained earnings | | | | | (106,028) | | | | | | (105,640) | | | | | | 388 | | |
Shareholders’ equity | | | | | 20,423 | | | | | | 20,811 | | | | | | 388 | | |
| | | As of and for the Year Ended February 28, 2021 | | |||||||||||||||
| | | As Reported Under LIFO | | | As Adjusted Under FIFO | | | Effect of Change | | |||||||||
Cost of goods sold | | | | $ | 207,716 | | | | | $ | 207,565 | | | | | $ | 151 | | |
Net income | | | | | 4,063 | | | | | | 4,214 | | | | | | 151 | | |
Inventory | | | | | 75,554 | | | | | | 75,705 | | | | | | 151 | | |
Total assets | | | | | 156,461 | | | | | | 156,612 | | | | | | 151 | | |
Retained earnings | | | | | (103,829) | | | | | | (103,678) | | | | | | 151 | | |
Shareholders’ equity | | | | | 22,260 | | | | | | 22,411 | | | | | | 151 | | |
| | | | | F-75 | | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-76 | | | |
| | | | | F-77 | | | |
| | | | | F-78 | | | |
| | | | | F-79 | | | |
| | | | | F-80 | | |
| | | |
| | | 2021 | | | 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 5,731 | | | | | $ | 5,243 | | |
Accounts receivable, net of allowance for doubtful accounts of $696 and $451, at February 28, 2021 and February 29, 2020, respectively | | | | | 19,160 | | | | | | 19,942 | | |
Inventories, net (Note 3) | | | | | 75,705 | | | | | | 86,491 | | |
Prepaid expenses and other current assets | | | | | 9,565 | | | | | | 11,226 | | |
Total current assets | | | | | 110,161 | | | | | | 122,902 | | |
Property, plant and equipment, net (Note 4) | | | | | 34,649 | | | | | | 35,850 | | |
Intangible assets, net (Note 5) | | | | | 5,741 | | | | | | 6,418 | | |
Deferred income tax asset (Note 9) | | | | | 1,635 | | | | | | 1,810 | | |
Other assets | | | | | 4,426 | | | | | | 4,479 | | |
Total assets | | | | $ | 156,612 | | | | | $ | 171,459 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Current portion long-term debt (Note 6) | | | | $ | 1,843 | | | | | $ | 2,375 | | |
Accounts payable – trade | | | | | 29,665 | | | | | | 35,399 | | |
Accounts payable with company under common control | | | | | 3,399 | | | | | | 4,250 | | |
Accrued payroll | | | | | 2,241 | | | | | | 1,237 | | |
Income tax payable | | | | | 81 | | | | | | 765 | | |
Sales allowance accrued expenses | | | | | 1,893 | | | | | | 2,025 | | |
Deferred revenue 2,215 | | | | | 3,093 | | | | | | | | |
Other accrued expenses | | | | | 21,512 | | | | | | 19,542 | | |
Total current liabilities | | | | | 62,850 | | | | | | 68,686 | | |
Long-term debt, net (Note 6) | | | | | 54,981 | | | | | | 73,952 | | |
Deferred income tax liability (Note 9) | | | | | 498 | | | | | | 643 | | |
Other long-term liabilities | | | | | 15,873 | | | | | | 9,516 | | |
Total liabilities | | | | | 134,201 | | | | | | 152,797 | | |
Commitments and contingencies (Note 12) | | | | | | | | | | | | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, par value $.001 per share, 50,000 issued and outstanding | | | | | — | | | | | | — | | |
Series A preferred stock, par value $.001 per share, 10,000 issued and outstanding ($1 per share liquidation value) | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 107,585 | | | | | | 107,585 | | |
Accumulated deficit | | | | | (103,678) | | | | | | (107,892) | | |
Accumulated other comprehensive income: | | | | | | | | | | | | | |
Foreign currency translation | | | | | 18,504 | | | | | | 18,969 | | |
Total shareholders’ equity | | | | | 22,411 | | | | | | 18,662 | | |
Total liabilities and shareholders’ equity | | | | $ | 156,612 | | | | | $ | 171,459 | | |
| | | 2021 | | | 2020 | | ||||||
Net sales | | | | $ | 334,679 | | | | | $ | 324,213 | | |
Cost of goods sold | | | | | 207,565 | | | | | | 199,227 | | |
Gross profit | | | | | 127,114 | | | | | | 124,986 | | |
Operating expenses | | | | | | | | | | | | | |
Direct marketing expense | | | | | 57,245 | | | | | | 64,806 | | |
Selling and marketing | | | | | 16,595 | | | | | | 21,448 | | |
General and administration | | | | | 35,560 | | | | | | 40,940 | | |
Management fees | | | | | 798 | | | | | | 1,039 | | |
Restructuring expenses (see note 8) | | | | | 7,272 | | | | | | — | | |
Intangible impairment | | | | | — | | | | | | 4,285 | | |
Goodwill impairment | | | | | — | | | | | | 44,433 | | |
| | | | | 117,470 | | | | | | 176,951 | | |
Income (loss) from operations before other income (expense) | | | | | 9,644 | | | | | | (51,965) | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | | (5,880) | | | | | | (6,734) | | |
Foreign exchange gain (loss) | | | | | 1,126 | | | | | | (890) | | |
Other income (expense), net | | | | | (243) | | | | | | 161 | | |
| | | | | (4,997) | | | | | | (7,463) | | |
Income (loss) before income tax expense | | | | | 4,647 | | | | | | (59,428) | | |
Income tax expense | | | | | 433 | | | | | | 95 | | |
Net income (loss) | | | | | 4,214 | | | | | | (59,523) | | |
Other comprehensive loss | | | | | | | | | | | | | |
Foreign currency translation adjustment | | | | | (289) | | | | | | (198) | | |
Loss on foreign currency contracts | | | | | (176) | | | | | | — | | |
| | | | | (465) | | | | | | (198) | | |
Comprehensive income (loss) | | | | $ | 3,749 | | | | | $ | (59,721) | | |
Weighted average common shares outstanding | | | | | 50 | | | | | | 50 | | |
Basic earnings per common share | | | | $ | 84 | | | | | $ | (1,190) | | |
Diluted earnings per common share | | | | $ | 84 | | | | | $ | (1,190) | | |
| | | Common Stock | | | Preferred Stock | | | Additional Paid in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||
Balance, March 1, 2019 | | | | $ | — | | | | | $ | — | | | | | $ | 107,585 | | | | | $ | (48,369) | | | | | $ | 19,167 | | | | | $ | 78,383 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (198) | | | | | | (198) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (59,523) | | | | | | — | | | | | | (59,523) | | |
Balance, February 29, 2020 | | | | | — | | | | | | — | | | | | | 107,585 | | | | | | (107,892) | | | | | | 18,969 | | | | | | 18,662 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (289) | | | | | | (289) | | |
Loss on foreign currency contracts | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (176) | | | | | | (176) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 4,214 | | | | | | — | | | | | | 4,214 | | |
Balance, February 28, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | 107,585 | | | | | $ | (103,678) | | | | | $ | 18,504 | | | | | $ | 22,411 | | |
| | | 2021 | | | 2020 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 4,214 | | | | | $ | (59,523) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and intangible and other asset amortization | | | | | 7,065 | | | | | | 6,799 | | |
Provision for doubtful accounts | | | | | 246 | | | | | | (163) | | |
Intangible impairment | | | | | — | | | | | | 4,285 | | |
Goodwill impairment | | | | | — | | | | | | 44,433 | | |
(Gain) loss on sale of property, plant and equipment | | | | | (21) | | | | | | 4 | | |
Amortization of deferred gain on sale-leaseback | | | | | (367) | | | | | | (367) | | |
Amortization of deferred financing fees | | | | | 820 | | | | | | 484 | | |
Deferred income taxes | | | | | 31 | | | | | | (933) | | |
Increase (decrease) in cash from changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 835 | | | | | | 1,553 | | |
Inventories | | | | | 10,774 | | | | | | (762) | | |
Prepaid expenses and other assets | | | | | 1,356 | | | | | | (319) | | |
Accounts payable | | | | | (7,100) | | | | | | 12,482 | | |
Accrued expenses and other liabilities | | | | | 7,837 | | | | | | (13,486) | | |
Net cash provided by (used in) operating activities | | | | | 25,690 | | | | | | (5,513) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Proceeds from sale of assets | | | | | 12 | | | | | | — | | |
Purchase of machinery and equipment | | | | | (4,137) | | | | | | (1,831) | | |
Net cash (used in) investing activities | | | | | (4,125) | | | | | | (1,831) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net (payments) proceeds on line of credit | | | | | (19,297) | | | | | | 3,899 | | |
Proceeds from long-term debt | | | | | — | | | | | | 837 | | |
Proceeds from German Euro loan | | | | | 610 | | | | | | — | | |
Principal payments on capital lease obligations | | | | | (1,991) | | | | | | (1,427) | | |
Principal payments on long-term debt | | | | | (483) | | | | | | (414) | | |
Loan issuance costs | | | | | (437) | | | | | | (566) | | |
Net cash (used in) provided by financing activities | | | | | (21,598) | | | | | | 2,329 | | |
Net change in cash | | | | | (33) | | | | | | (5,015) | | |
Effect of exchange rate changes on cash | | | | | 521 | | | | | | (367) | | |
Cash at beginning of the period | | | | | 5,243 | | | | | | 10,625 | | |
Cash at end of the period | | | | $ | 5,731 | | | | | $ | 5,243 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year: | | | | | | | | | | | | | |
Interest | | | | $ | 4,737 | | | | | $ | 4,693 | | |
Income taxes | | | | | 676 | | | | | | 1,220 | | |
Supplemental disclosures of non-cash items: | | | | | | | | | | | | | |
Acquired capital lease | | | | $ | 957 | | | | | $ | 4,257 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Balance at beginning of year | | | | $ | 450 | | | | | $ | 614 | | |
Provisions charged to expense | | | | | 366 | | | | | | 6 | | |
Net Charges and Recoveries | | | | | (120) | | | | | | (170) | | |
Balance at end of year | | | | $ | 696 | | | | | $ | 450 | | |
| | | Estimated Useful Lives (Years) | |
Building and improvements | | | 40 | |
Machinery and equipment | | | 7 to 10 | |
Vehicles | | | 5 | |
Furniture and fixtures | | | 5 to 7 | |
Data processing equipment and software | | | 3 to 5 | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Balance at beginning of year | | | | $ | 875 | | | | | $ | 2,311 | | |
Provisions charged to expense | | | | | 3,813 | | | | | | (1,184) | | |
Credit memos issued | | | | | (2,378) | | | | | | (252) | | |
Balance at end of year | | | | $ | 2,310 | | | | | $ | 875 | | |
| | | 2021 | | | 2020 | | | ||||||||
| | | (in thousands) | | | |||||||||||
Inventory on FIFO basis | | | | | | | | | | | | | | | ||
Raw materials | | | | $ | 21,100 | | | | | $ | 17,110 | | | | ||
Work in process | | | | | 4,376 | | | | | | 4,878 | | | | ||
Finished goods | | | | | 58,554 | | | | | | 73,010 | | | | ||
| | | | | 84,030 | | | | | | 94,998 | | | | | |
Lower of cost or net realizable value reserve | | | | | (4,112) | | | | | | (4,075) | | | | ||
Slow-moving, damaged and excess inventory reserve | | | | | (4,213) | | | | | | (4,432) | | | | ||
Inventories, net | | | | $ | 75,705 | | | | | $ | 86,491 | | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Balance at beginning of year | | | | $ | (8,507) | | | | | $ | (10,840) | | |
Costs charged to expense | | | | | (1,420) | | | | | | 911 | | |
Inventory write-off | | | | | 1,602 | | | | | | 1,422 | | |
Balance at end of year | | | | $ | (8,325) | | | | | $ | (8,507) | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Land | | | | $ | 2,839 | | | | | $ | 2,839 | | |
Buildings and improvements | | | | | 7,613 | | | | | | 7,183 | | |
Machinery and equipment | | | | | 24,050 | | | | | | 20,863 | | |
Vehicles | | | | | 30 | | | | | | 52 | | |
Furniture and fixtures | | | | | 3,613 | | | | | | 2,976 | | |
Data processing equipment and software | | | | | 19,952 | | | | | | 16,973 | | |
Construction in progress | | | | | 1,764 | | | | | | 2,523 | | |
| | | | | 59,861 | | | | | | 53,409 | | |
Less, accumulated depreciation | | | | | (25,212) | | | | | | (17,559) | | |
Property, plant and equipment, net | | | | $ | 34,649 | | | | | $ | 35,850 | | |
| | | Gross Carrying Amount | | | Impairment | | | Net Asset | | |||||||||
| | | (in thousands) | | |||||||||||||||
Goodwill – PartyLite | | | | $ | 44,433 | | | | | $ | (44,433) | | | | | $ | — | | |
| | | Gross Carrying Amount | | | Accumulated Amortization | | | Impairment | | | Net Asset | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Trade names – Candle-lite | | | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite | | | | | 2,574 | | | | | | (1,233) | | | | | | — | | | | | | 1,341 | | |
Customer relationships | | | | | 11,773 | | | | | | (3,752) | | | | | | (4,285) | | | | | | 3,736 | | |
Patents | | | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark | | | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,165 | | | | | $ | (5,139) | | | | | $ | (4,285) | | | | | $ | 5,741 | | |
| | | Gross Carrying Amount | | | Accumulated Amortization | | | Impairment | | | Net Asset | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Trade names – Candle-lite | | | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite | | | | | 2,574 | | | | | | (976) | | | | | | — | | | | | | 1,598 | | |
Customer relationships | | | | | 11,773 | | | | | | (3,332) | | | | | | (4,285) | | | | | | 4,156 | | |
Patents | | | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark | | | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,165 | | | | | $ | (4,462) | | | | | $ | (4,285) | | | | | $ | 6,418 | | |
| 2022 | | | | $ | 677 | | |
| 2023 | | | | | 677 | | |
| 2024 | | | | | 677 | | |
| 2025 | | | | | 677 | | |
| 2026 | | | | | 677 | | |
| Thereafter | | | | | 1,692 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
5.36% term note | | | | $ | 11,602 | | | | | $ | 11,836 | | |
Term note payable A | | | | | 11,750 | | | | | | 12,000 | | |
Term note payable B | | | | | 12,500 | | | | | | 12,500 | | |
Revolver – (European) | | | | | 50 | | | | | | 5,069 | | |
Revolver – (US) | | | | | 19,619 | | | | | | 33,619 | | |
Covid relief | | | | | 605 | | | | | | — | | |
Capital lease | | | | | 2,046 | | | | | | 3,075 | | |
| | | | | 58,172 | | | | | | 78,099 | | |
Less: | | | | | | | | | | | | | |
Deferred financing fees | | | | | (1,348) | | | | | | (1,772) | | |
Current maturities – long-term debt | | | | | (1,843) | | | | | | (2,375) | | |
| | | | $ | 54,981 | | | | | $ | 73,952 | | |
| 2022 | | | | $ | 1,843 | | |
| 2023 | | | | | 44,596 | | |
| 2024 | | | | | 583 | | |
| 2025 | | | | | 11,055 | | |
| 2026 | | | | | 95 | | |
| Total | | | | $ | 58,172 | | |
| 2022 | | | | $ | 1,197 | | |
| 2023 | | | | | 343 | | |
| 2024 | | | | | 342 | | |
| 2025 | | | | | 254 | | |
| 2026 | | | | | 98 | | |
| Total minimum lease payments | | | | | 2,234 | | |
| Less amounts representing interest | | | | | (188) | | |
| | | | | | 2,046 | | |
| Less current portion of lease obligations | | | | | (1,118) | | |
| Total lease obligations net of current | | | | $ | 928 | | |
| Severance and related costs | | | | $ | 4,265 | | |
| Contract cancellations | | | | | 896 | | |
| Legal expenses | | | | | 546 | | |
| Lease exit costs | | | | | 504 | | |
| Other | | | | | 1,061 | | |
| Total restructuring costs | | | | $ | 7,272 | | |
| | | February 29, 2020 | | | Charges | | | Usage | | | February 28, 2021 | | | ||||||||||||||
| | | (in thousands) | | | | | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Severance and related costs | | | | $ | — | | | | | $ | 4,265 | | | | | $ | (1,599) | | | | | $ | 2,666 | | | | ||
Contract cancellations | | | | | — | | | | | | 896 | | | | | | (773) | | | | | | 123 | | | | ||
Legal expenses | | | | | — | | | | | | 546 | | | | | | (442) | | | | | | 104 | | | | ||
Lease exit costs | | | | | — | | | | | | 504 | | | | | | (28) | | | | | | 476 | | | | | |
Other | | | | | — | | | | | | 1,061 | | | | | | (1,057) | | | | | | 4 | | | | ||
Total | | | | $ | — | | | | | $ | 7,272 | | | | | $ | (3,899) | | | | | $ | 3,373 | | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
United States | | | | $ | 11,169 | | | | | $ | (53,520) | | |
Foreign | | | | | (6,522) | | | | | | (5,908) | | |
| | | | $ | 4,647 | | | | | $ | (59,428) | | |
| | | 2021 | | | 2020 | | | ||||||||
| | | (in thousands) | | | |||||||||||
Current income tax expense (benefit): | | | | | | | | | | | | | | | ||
Federal | | | | $ | — | | | | | $ | — | | | | ||
State | | | | | 55 | | | | | | 17 | | | | ||
Foreign | | | | | 310 | | | | | | 1,028 | | | | ||
| | | | | 365 | | | | | | 1,045 | | | | | |
Deferred income tax expense (benefit): | | | | | | | | | | | | | | | ||
Federal | | | | | — | | | | | | — | | | | ||
State | | | | | — | | | | | | — | | | | ||
Foreign | | | | | 68 | | | | | | (950) | | | | ||
| | | | | 68 | | | | | | (950) | | | | ||
Income tax expense | | | | $ | 433 | | | | | $ | 95 | | | |
| | | 2021 | | | 2020 | | | ||||||||
| | | (in thousands) | | | |||||||||||
Deferred tax assets: | | | | | | | | | | | | | | | ||
Net operating loss | | | | $ | 28,480 | | | | | $ | 29,930 | | | | ||
Basis difference on investment | | | | | 27,754 | | | | | | 27,754 | | | | ||
Accrued expenses and other | | | | | 5,412 | | | | | | 4,346 | | | | ||
Deferred gain on sale of Tilburg | | | | | 3,785 | | | | | | 4,010 | | | | ||
Allowance for doubtful accounts | | | | | 1,489 | | | | | | 1,440 | | | | ||
Interest expense limitation | | | | | 1,450 | | | | | | 2,317 | | | | ||
Deferred tax assets | | | | | 68,370 | | | | | | 69,797 | | | | ||
Valuation allowance | | | | | (55,620) | | | | | | (56,045) | | | | ||
| | | | | 12,750 | | | | | | 13,752 | | | | | |
Deferred tax liabilities: | | | | | | | | | | | | | | | ||
Inventory reserves | | | | | (795) | | | | | | (1,044) | | | | ||
Prepaid expenses | | | | | (727) | | | | | | (730) | | | | ||
Depreciation | | | | | (6,396) | | | | | | (6,862) | | | | ||
Amortization of intangibles | | | | | (3,696) | | | | | | (3,949) | | | | ||
| | | | | (11,614) | | | | | | (12,585) | | | | ||
Net deferred tax assets | | | | $ | 1,136 | | | | | $ | 1,167 | | | |
| | | 2021 | | | 2020 | | ||||||
Tax at statutory rate | | | | $ | 944 | | | | | $ | (12,480) | | |
Tax effect of: | | | | | | | | | | | | | |
Expiration of US capital loss carryforward | | | | | — | | | | | | 19,386 | | |
Change in valuation allowance | | | | | (425) | | | | | | (16,720) | | |
Goodwill impairment | | | | | — | | | | | | 9,538 | | |
PPP loan forgiveness | | | | | (2,046) | | | | | | — | | |
Switzerland pension and statutory reserves | | | | | 213 | | | | | | 999 | | |
State income taxes | | | | | 383 | | | | | | (455) | | |
Return to provision | | | | | 154 | | | | | | 272 | | |
Foreign tax rate differential | | | | | 1,027 | | | | | | (217) | | |
Foreign dividend and subpart F income | | | | | 204 | | | | | | (183) | | |
Change in statutory rate | | | | | — | | | | | | (75) | | |
Other | | | | | (21) | | | | | | 30 | | |
| | | | $ | 433 | | | | | $ | 95 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Changes in benefit obligation | | | | | | | | | | | | | |
Benefit obligation at beginning of year | | | | $ | 6,801 | | | | | $ | 7,492 | | |
Interest cost | | | | | — | | | | | | 51 | | |
Service cost | | | | | 426 | | | | | | 314 | | |
Contributions by plan participants | | | | | 90 | | | | | | 87 | | |
Benefits paid | | | | | (756) | | | | | | (54) | | |
Others | | | | | — | | | | | | (2,045) | | |
Actuarial (gains) / losses | | | | | (346) | | | | | | 741 | | |
Currency translation | | | | | 425 | | | | | | 215 | | |
Benefit obligation at end of year | | | | $ | 6,640 | | | | | $ | 6,801 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Changes in plan assets | | | | | | | | | | | | | |
Fair value of plan assets at beginning of year | | | | $ | 5,200 | | | | | $ | 6,560 | | |
Actual return on plan assets | | | | | (103) | | | | | | 215 | | |
Contributions by employer | | | | | 279 | | | | | | 266 | | |
Contributions by plan participants | | | | | 90 | | | | | | 87 | | |
Benefits paid | | | | | (756) | | | | | | (54) | | |
Others | | | | | — | | | | | | (2,045) | | |
Currency translation | | | | | 324 | | | | | | 170 | | |
Fair value of plan assets at end of year | | | | $ | 5,034 | | | | | $ | 5,199 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Funded status | | | | | | | | | | | | | |
Noncurrent liabilities | | | | $ | 1,606 | | | | | $ | 1,602 | | |
Net amounts recognized on the consolidated balance sheets | | | | $ | 1,606 | | | | | $ | 1,602 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Projected benefit obligation | | | | $ | 6,640 | | | | | $ | 6,801 | | |
Accumulated benefit obligation | | | | $ | 6,514 | | | | | $ | 6,667 | | |
Fair value of plan assets | | | | $ | 5,034 | | | | | $ | 5,199 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Equity instruments | | | | $ | 1,518 | | | | | $ | 1,568 | | |
Debt instruments | | | | | 2,122 | | | | | | 2,192 | | |
Properties | | | | | 1,103 | | | | | | 1,139 | | |
Liquid assets | | | | | 146 | | | | | | 151 | | |
Others | | | | | 145 | | | | | | 150 | | |
Fair value of plan assets at year end | | | | $ | 5,034 | | | | | $ | 5,200 | | |
| | | 2021 | | | 2020 | | ||||||
Discount rates | | | | | 0.15% | | | | | | 0.00% | | |
Rates of compensation increase | | | | | 1.00% | | | | | | 1.00% | | |
Expected long-term rates of return on plan assets | | | | | 1.50% | | | | | | 1.50% | | |
Mortality tables | | | BVG 2015 GT | | | BVG 2015 GT | |
| 2022 | | | | $ | 46 | | |
| 2023 | | | | | 136 | | |
| 2024 | | | | | 295 | | |
| 2025 | | | | | 91 | | |
| 2026 | | | | | 120 | | |
| Next 5 years | | | | | 695 | | |
| 2022 | | | | $ | 4,788 | | |
| 2023 | | | | | 4,187 | | |
| 2024 | | | | | 3,746 | | |
| 2025 | | | | | 3,042 | | |
| 2026 | | | | | 2,925 | | |
| Thereafter | | | | | 25,033 | | |
| | | | | $ | 43,721 | | |
| | | FY 2021 | | |||||||||||||||||||||||||||||||||
| | | Candle- Lite | | | PartyLite | | | Combined | | | Corporate | | | Eliminations | | | Consolidated | | ||||||||||||||||||
Sales to external customers | | | | | 170,931 | | | | | | 163,748 | | | | | | 334,679 | | | | | | — | | | | | | — | | | | | | 334,679 | | |
Intersegment sales | | | | | 24,621 | | | | | | — | | | | | | 24,621 | | | | | | — | | | | | | (24,621) | | | | | | — | | |
Gross Profit | | | | | 31,792 | | | | | | 95,322 | | | | | | 127,114 | | | | | | — | | | | | | — | | | | | | 127,114 | | |
Depreciation and amortization expense | | | | | 2,643 | | | | | | 4,422 | | | | | | 7,065 | | | | | | — | | | | | | — | | | | | | 7,065 | | |
Interest expense | | | | | 5,461 | | | | | | 419 | | | | | | 5,880 | | | | | | — | | | | | | — | | | | | | 5,880 | | |
Income tax expense(benefit) | | | | | 51 | | | | | | 634 | | | | | | 685 | | | | | | (252) | | | | | | — | | | | | | 433 | | |
Net income (loss) | | | | | 15,930 | | | | | | (5,881) | | | | | | 10,049 | | | | | | (5,835) | | | | | | — | | | | | | 4,214 | | |
Total assets | | | | | 144,503 | | | | | | 67,037 | | | | | | 211,540 | | | | | | (1,541) | | | | | | (53,387) | | | | | | 156,612 | | |
Capital expenditures | | | | | 1,322 | | | | | | 2,815 | | | | | | 4,137 | | | | | | — | | | | | | — | | | | | | 4,137 | | |
| | | FY 2020 | | | | |||||||||||||||||||||||||||||||||||||
| | | Candle- Lite | | | PartyLite | | | Combined | | | Corporate | | | Eliminations | | | Consolidated | | | | ||||||||||||||||||||||
Sales to external customers | | | | | 145,251 | | | | | | 178,962 | | | | | | 324,213 | | | | | | — | | | | | | — | | | | | | 324,213 | | | | | ||||
Intersegment sales | | | | | 22,008 | | | | | | | | | | | | 22,008 | | | | | | | | | | | | (22,008) | | | | | | — | | | | | ||||
Gross Profit | | | | | 17,878 | | | | | | 107,108 | | | | | | 124,986 | | | | | | — | | | | | | — | | | | | | 124,986 | | | | | ||||
Depreciation and amortization expense | | | | | 2,654 | | | | | | 4,145 | | | | | | 6,799 | | | | | | — | | | | | | — | | | | | | 6,799 | | | | | ||||
Interest expense | | | | | 6,154 | | | | | | 580 | | | | | | 6,734 | | | | | | — | | | | | | — | | | | | | 6,734 | | | | | ||||
Income tax expense(benefit) | | | | | (2) | | | | | | 272 | | | | | | 270 | | | | | | (175) | | | | | | | | | | | | 95 | | | | | | | ||
Net income (loss) | | | | | 2,322 | | | | | | (56,920) | | | | | | (54,598) | | | | | | (4,925) | | | | | | | | | | | | (59,523) | | | | | | | ||
Total assets | | | | | 149,252 | | | | | | 83,750 | | | | | | 233,002 | | | | | | 7,833 | | | | | | (69,376) | | | | | | 171,459 | | | | | ||||
Capital expenditures | | | | | 1,794 | | | | | | 37 | | | | | | 1,831 | | | | | | | | | | | | | | | | | | 1,831 | | | | | | | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Net sales to external customers | | | | | | | | | | | | | |
United States | | | | $ | 188,949 | | | | | $ | 167,276 | | |
Germany | | | | | 47,777 | | | | | | 52,304 | | |
France | | | | | 31,053 | | | | | | 35,625 | | |
Other foreign countries | | | | | 66,900 | | | | | | 69,008 | | |
| | | | $ | 334,679 | | | | | $ | 324,213 | | |
| | | 2021 | | | 2020 | | ||||||
| | | (in thousands) | | |||||||||
Long-lived assets | | | | | | | | | | | | | |
United States | | | | $ | 33,624 | | | | | $ | 33,342 | | |
Foreign countries | | | | | 1,025 | | | | | | 1,347 | | |
| | | | $ | 34,649 | | | | | $ | 34,689 | | |
| | | As of and for the Year Ended February 28, 2021 | | |||||||||||||||
| | | As Reported Under LIFO | | | As Adjusted Under FIFO | | | Effect of Change | | |||||||||
Cost of goods sold | | | | $ | 207,716 | | | | | $ | 207,565 | | | | | $ | 151 | | |
Net income | | | | | 4,063 | | | | | | 4,214 | | | | | | 151 | | |
Inventory | | | | | 75,554 | | | | | | 75,705 | | | | | | 151 | | |
Total assets | | | | | 156,461 | | | | | | 156,612 | | | | | | 151 | | |
Retained earnings | | | | | (103,829) | | | | | | (103,678) | | | | | | 151 | | |
Shareholders’ equity | | | | | 22,260 | | | | | | 22,411 | | | | | | 151 | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-105 | | | |
| | | | | F-106 | | | |
| | | | | F-107 | | | |
| | | | | F-108 | | | |
| | | | | F-109 | | |
| | | May 31, 2022 (Unaudited) | | | February 28, 2022 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | $ | 5,263 | | | | | $ | 4,744 | | |
Accounts receivable, net of allowance for doubtful accounts of $386 and $388, at May 31, 2022 and February 28, 2022, respectively | | | | | 14,778 | | | | | | 15,684 | | |
Inventories, net (Note 3) | | | | | 93,919 | | | | | | 86,090 | | |
Prepaid expenses and other current assets | | | | | 9,711 | | | | | | 9,858 | | |
Total current assets | | | | | 123,671 | | | | | | 116,376 | | |
Property, plant and equipment, net (Note 4) | | | | | 29,515 | | | | | | 31,593 | | |
Right of use assets, operating leases net | | | | | 20,848 | | | | | | — | | |
Right of use assets, finance leases net | | | | | 1,103 | | | | | | — | | |
Intangible assets, net (Note 5) | | | | | 4,896 | | | | | | 5,065 | | |
Deferred income tax asset (Note 9) | | | | | 593 | | | | | | 1,965 | | |
Other assets | | | | | 4,387 | | | | | | 4,315 | | |
Total assets | | | | $ | 185,013 | | | | | $ | 159,314 | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Current portion long-term debt (Note 6) | | | | $ | 58,516 | | | | | $ | 941 | | |
Current operating lease liability | | | | | 2,162 | | | | | | — | | |
Current finance lease liability | | | | | 317 | | | | | | | | |
Accounts payable – trade | | | | | 43,156 | | | | | | 34,957 | | |
Accounts payable with company under common control | | | | | 336 | | | | | | 538 | | |
Accrued payroll | | | | | 205 | | | | | | 241 | | |
Income tax payable | | | | | 66 | | | | | | — | | |
Sales allowance accrued expenses | | | | | 1,155 | | | | | | 889 | | |
Deferred revenue | | | | | 1,560 | | | | | | 1,615 | | |
Other accrued expenses | | | | | 20,858 | | | | | | 20,676 | | |
Total current liabilities | | | | | 128,331 | | | | | | 59,857 | | |
Long-term debt, net (Note 6) | | | | | 11,317 | | | | | | 68,222 | | |
Non-current operating lease | | | | | 18,835 | | | | | | — | | |
Non-current finance lease | | | | | 588 | | | | | | — | | |
Deferred income tax liability (Note 9) | | | | | 1,156 | | | | | | 1,156 | | |
Other long-term liabilities | | | | | 3,567 | | | | | | 9,268 | | |
Total liabilities | | | | | 163,794 | | | | | | 138,503 | | |
Shareholders’ equity | | | | | | | | | | | | | |
Common stock, par value $.001 per share, 50,000 issued and outstanding | | | | | — | | | | | | — | | |
Series A preferred stock, par value $.001 per share, 10,000 issued and outstanding ($1 per share liquidation value) | | | | | — | | | | | | — | | |
Additional paid-in capital | | | | | 107,585 | | | | | | 107,585 | | |
Accumulated deficit | | | | | (105,346) | | | | | | (105,640) | | |
Accumulated other comprehensive income: | | | | | | | | | | | | | |
Foreign currency translation | | | | | 18,980 | | | | | | 18,866 | | |
Total shareholders’ equity | | | | | 21,219 | | | | | | 20,811 | | |
Total liabilities and shareholders’ equity | | | | $ | 185,013 | | | | | $ | 159,314 | | |
| | | Three Months Ended May 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Net sales | | | | $ | 51,751 | | | | | $ | 72,746 | | |
Cost of goods sold | | | | | 35,670 | | | | | | 49,999 | | |
Gross profit | | | | | 16,081 | | | | | | 22,747 | | |
Operating expenses | | | | | | | | | | | | | |
Direct marketing expense | | | | | 7,356 | | | | | | 10,495 | | |
Selling and marketing | | | | | 2,721 | | | | | | 3,073 | | |
General and administration | | | | | 7,642 | | | | | | 9,048 | | |
Management fees | | | | | 125 | | | | | | 118 | | |
Restructuring expenses (see Note 8) | | | | | — | | | | | | (40) | | |
| | | | | 17,844 | | | | | | 22,694 | | |
Income from operations before other income (expense) | | | | | (1,763) | | | | | | 53 | | |
Other income (expense) | | | | | | | | | | | | | |
Interest expense | | | | | (1,747) | | | | | | (1,631) | | |
Foreign exchange gain (loss) | | | | | 17 | | | | | | (122) | | |
Other income (expense), net | | | | | 12 | | | | | | (32) | | |
| | | | | (1,718) | | | | | | (1,785) | | |
Income (loss) before income tax expense | | | | | (3,481) | | | | | | (1,732) | | |
Income tax (benefit) expense | | | | | (33) | | | | | | (15) | | |
Net income (loss) | | | | | (3,448) | | | | | | (1,718) | | |
Other comprehensive income (loss) | | | | | | | | | | | | | |
Foreign currency translation adjustment | | | | | 114 | | | | | | 11 | | |
Comprehensive income (loss) | | | | $ | (3,334) | | | | | $ | (1,707) | | |
Weighted average common shares outstanding | | | | | 50 | | | | | | 50 | | |
Basic earnings per common share | | | | $ | (67) | | | | | $ | (34) | | |
Diluted earnings per common share | | | | $ | (67) | | | | | $ | (34) | | |
| | | For the Three Months Ended May 31, 2022 | | |||||||||||||||||||||||||||||||||
| | | Common Stock | | | Preferred Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||
Balance, February 28, 2022 | | | | | — | | | | | | — | | | | | $ | 107,585 | | | | | $ | (105,640) | | | | | $ | 18,866 | | | | | $ | 20,811 | | |
ASC 842 Adoption | | | | | — | | | | | | — | | | | | | — | | | | | | 3,742 | | | | | | — | | | | | | 3,742 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 114 | | | | | | 114 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | (3,448) | | | | | | — | | | | | | (3,448) | | |
Balance, May, 31, 2022 | | | | | — | | | | | | — | | | | | $ | 107,585 | | | | | $ | (105,346) | | | | | $ | 18,980 | | | | | $ | 21,219 | | |
| | | For the Three Months Ended May 31, 2021 | | |||||||||||||||||||||||||||||||||
| | | Common Stock | | | Preferred Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Accumulated Other Comprehensive Income (Loss) | | | Total | | ||||||||||||||||||
Balance, February 28, 2021 | | | | | — | | | | | | — | | | | | $ | 107,585 | | | | | $ | (103,678) | | | | | $ | 18,504 | | | | | $ | 22,411 | | |
Foreign currency translation | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 11 | | | | | | 11 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | (1,718) | | | | | | — | | | | | | (1,718) | | |
Balance, May 31, 2021 | | | | | — | | | | | | — | | | | | $ | 107,585 | | | | | $ | (105,396) | | | | | $ | 18,515 | | | | | $ | 20.704 | | |
| | | Three Months Ended May 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net income (loss) | | | | $ | (3,448) | | | | | $ | (1,718) | | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | | | | | | | | | | | | | |
Depreciation and intangible and other asset amortization | | | | | 1,767 | | | | | | 1,750 | | |
Provision for doubtful accounts | | | | | (2) | | | | | | (49) | | |
(Gain) loss on sale of property, plant and equipment | | | | | — | | | | | | 168 | | |
Amortization of deferred gain on sale-leaseback | | | | | — | | | | | | (275) | | |
Amortization of deferred financing fees | | | | | 267 | | | | | | 242 | | |
Deferred income taxes | | | | | 574 | | | | | | 916 | | |
Increase (decrease) in cash from changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 1,858 | | | | | | 7,980 | | |
Inventories | | | | | (8,780) | | | | | | (6,983) | | |
Prepaid expenses and other assets | | | | | 1 | | | | | | (1,368) | | |
Accounts payable | | | | | 8,580 | | | | | | (1,213) | | |
Accrued expenses and other liabilities | | | | | (176) | | | | | | (5,076) | | |
Net cash provided by (used in) operating activities | | | | | 641 | | | | | | (5,626) | | |
Cash flows from investing activities | | | | | | | | | | | | | |
Purchase of machinery and equipment | | | | | (714) | | | | | | (834) | | |
Net cash (used in) investing activities | | | | | (714) | | | | | | (834) | | |
Cash flows from financing activities | | | | | | | | | | | | | |
Net (payments) proceeds on line of credit | | | | | 1,704 | | | | | | 5,842 | | |
Principal payments on financing lease liabilities | | | | | (739) | | | | | | (535) | | |
Principal payments on long-term debt | | | | | (130) | | | | | | (127) | | |
Loan issuance costs | | | | | (100) | | | | | | — | | |
Net cash (used in) provided by financing activities | | | | | 735 | | | | | | 5,180 | | |
Net change in cash | | | | | 662 | | | | | | (1,279) | | |
Effect of exchange rate changes on cash | | | | | (143) | | | | | | (5) | | |
Cash at beginning of the period | | | | | 4,744 | | | | | | 5,731 | | |
Cash at end of the period | | | | $ | 5,263 | | | | | $ | 4,446 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Cash paid during the year: | | | | | | | | | | | | | |
Interest | | | | $ | 1,724 | | | | | $ | 1,342 | | |
Income taxes | | | | | 51 | | | | | | 254 | | |
| | | As of and for the Year Ended February 28, 2022 | | |||||||||||||||
| | | As Reported Under LIFO | | | As Adjusted Under FIFO | | | Effect of Change | | |||||||||
Inventory | | | | $ | 85,702 | | | | | $ | 86,090 | | | | | $ | 388 | | |
Total assets | | | | | 158,926 | | | | | | 159,314 | | | | | | 388 | | |
Retained earnings | | | | | (106,028) | | | | | | (105,640) | | | | | | 388 | | |
Shareholders’ equity | | | | | 20,423 | | | | | | 20,811 | | | | | | 388 | | |
| | | Estimated Useful Lives (Years) | |
Building and improvements | | | 40 | |
Machinery and equipment | | | 7 to 10 | |
Vehicles | | | 5 | |
Furniture and fixtures | | | 5 to 7 | |
Data processing equipment and software | | | 3 to 5 | |
| | | | | |||||||||
| | | May 31, 2022 | | | February 28, 2022 | | ||||||
| | | (in thousands) | | |||||||||
Inventory on FIFO basis | | | | | | | | | | | | | |
Raw materials | | | | $ | 26,402 | | | | | $ | 24,356 | | |
Work in process | | | | | 5,080 | | | | | | 4,577 | | |
Finished goods | | | | | 71,024 | | | | | | 64,714 | | |
| | | | | 102,506 | | | | | | 93,647 | | |
Slow-moving, damaged, and excess inventory reserve | | | | | (4,960) | | | | | | (3,927) | | |
Lower of cost or net realizable value reserve | | | | | (3,627) | | | | | | (3,630) | | |
Inventories, net | | | | $ | 93,919 | | | | | $ | 86,090 | | |
| | | May 31, 2022 | | | February 28, 2022 | | ||||||
| | | (in thousands) | | |||||||||
Land | | | | $ | 2,839 | | | | | $ | 2,839 | | |
Buildings and improvements | | | | | 8,333 | | | | | | 8,169 | | |
Machinery and equipment | | | | | 22,609 | | | | | | 24,089 | | |
Vehicles | | | | | 30 | | | | | | 30 | | |
Furniture and fixtures | | | | | 3,690 | | | | | | 3,900 | | |
Data processing equipment and software | | | | | 21,330 | | | | | | 21,390 | | |
Construction in progress | | | | | 1,176 | | | | | | 1,070 | | |
| | | | | 60,007 | | | | | | 61,487 | | |
Less, accumulated depreciation | | | | | (30,492) | | | | | | (29,893) | | |
Property, plant and equipment, net | | | | $ | 29,515 | | | | | $ | 31,593 | | |
| | | Gross Carrying Amount | | | Accumulated Amortization | | | Impairment | | | Net Asset | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Trade names – Candle-lite | | | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite | | | | | 2,574 | | | | | | (1,555) | | | | | | — | | | | | | 1,019 | | |
Customer relationships | | | | | 11,773 | | | | | | (4,275) | | | | | | (4,285) | | | | | | 3,213 | | |
Patents | | | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark | | | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,165 | | | | | $ | (5,984) | | | | | $ | (4,285) | | | | | $ | 4,896 | | |
| | | Gross Carrying Amount | | | Accumulated Amortization | | | Impairment | | | Net Asset | | ||||||||||||
| | | (in thousands) | | |||||||||||||||||||||
Trade names – Candle-lite | | | | $ | 664 | | | | | $ | — | | | | | $ | — | | | | | $ | 664 | | |
Trade names – PartyLite | | | | | 2,574 | | | | | | (1,491) | | | | | | — | | | | | | 1,083 | | |
Customer relationships | | | | | 11,773 | | | | | | (4,170) | | | | | | (4,285) | | | | | | 3,318 | | |
Patents | | | | | 119 | | | | | | (119) | | | | | | — | | | | | | — | | |
Trademark | | | | | 35 | | | | | | (35) | | | | | | — | | | | | | — | | |
Total | | | | $ | 15,165 | | | | | $ | (5,815) | | | | | $ | (4,285) | | | | | $ | 5,065 | | |
| 2023 | | | | $ | 507 | | |
| 2024 | | | | | 677 | | |
| 2025 | | | | | 677 | | |
| 2026 | | | | | 677 | | |
| 2027 | | | | | 677 | | |
| Thereafter | | | | | 1,017 | | |
| | | May 31, 2022 | | | February 28, 2022 | | ||||||
| | | (in thousands) | | |||||||||
5.36% term note | | | | $ | 11,287 | | | | | $ | 11,355 | | |
Term note payable A | | | | | 9,987 | | | | | | 10,050 | | |
Term note payable B | | | | | 10,949 | | | | | | 10,949 | | |
Revolver – (European) | | | | | 2,004 | | | | | | 1,862 | | |
Revolver – (US) | | | | | 36,259 | | | | | | 34,779 | | |
Covid Relief | | | | | 436 | | | | | | 491 | | |
| | | | | 70,922 | | | | | | 69,486 | | |
Long term debt | | | | | 11,317 | | | | | | 67,290 | | |
Deferred financing fees | | | | | (1,089) | | | | | | (1,255) | | |
Current maturities – long-term debt | | | | $ | 58,516 | | | | | $ | 941 | | |
| 2023 | | | | $ | 59,605 | | |
| 2024 | | | | | 313 | | |
| 2025 | | | | | 10,954 | | |
| 2026 | | | | | 50 | | |
| 2027 | | | | | — | | |
| Total | | | | $ | 70,922 | | |
| | | Balance Sheet Classification | | | May 31, 2022 | | |||
| | | | | | (In thousands) | | |||
Assets: | | | | | | | | | | |
Operating lease assets | | | Right of use assets, net | | | | $ | 20,848 | | |
Finance lease assets | | | Right of use assets, net | | | | $ | 1,103 | | |
Total leased assets | | | | | | | | 21,951 | | |
Liabilities: | | | | | | | | | | |
Current: | | | | | | | | | | |
Operating | | | Other accrued expenses | | | | $ | 2,162 | | |
Financing | | | Current maturities on LT debt | | | | $ | 317 | | |
Non- Current: | | | | | | | | | | |
Operating | | | Other long-term liabilities | | | | $ | 18,835 | | |
Financing | | | Long-term debt | | | | $ | 588 | | |
Total leased liabilities | | | | | | | $ | 21,902 | | |
| | | May 31, 2022 | | |||
| | | (in thousands) | | |||
Operating lease cost | | | | $ | | | |
Amortization of right-of-use assets | | | | | 552 | | |
Interest on lease liabilities | | | | | | | |
Short term lease expense | | | | | 263 | | |
Finance lease cost | | | | | 4 | | |
Amortization of right-of-use assets | | | | | 48 | | |
Interest on lease liabilities | | | | | 16 | | |
Total lease cost | | | | $ | 883 | | |
| | | May 31, 2022 | |
Weighted Average Remaining Lease Term | | | | |
Operating Leases | | | 14.9 years | |
Finance Leases | | | 2.8 years | |
Weighted Average Discount Rate | | | | |
Operating Leases | | | 5.0% | |
Finance Leases | | | 7.1% | |
| | | Finance | | | Operating | | ||||||
2023 | | | | $ | 308 | | | | | $ | 2,530 | | |
2024 | | | | | 361 | | | | | | 3,017 | | |
2025 | | | | | 283 | | | | | | 2,526 | | |
2026 | | | | | 75 | | | | | | 2,188 | | |
2027 | | | | | — | | | | | | 1,721 | | |
Thereafter | | | | | — | | | | | | 17,976 | | |
Less imputed interest | | | | | (122) | | | | | | (8,961) | | |
Total | | | | $ | 905 | | | | | $ | 20,997 | | |
| 2023 | | | | $ | 343 | | |
| 2024 | | | | | 342 | | |
| 2025 | | | | | 254 | | |
| 2026 | | | | | 100 | | |
| 2027 | | | | | — | | |
| Total minimum lease payments | | | | $ | 1,039 | | |
| Less amounts representing interest | | | | | (107) | | |
| Less current portion of lease obligations | | | | | (343) | | |
| Total lease obligations net of current | | | | $ | 589 | | |
| 2023 | | | | $ | 3,332 | | |
| 2024 | | | | | 3,060 | | |
| 2025 | | | | | 2,555 | | |
| 2026 | | | | | 2,289 | | |
| 2027 | | | | | 1,795 | | |
| Thereafter | | | | | 5,576 | | |
| | | | | $ | 18,607 | | |
| | | May 31, 2022 | | | May 31, 2021 | | ||||||
(In thousands) | | | | | | | | | | | | | |
Severance and related costs | | | | $ | — | | | | | $ | (52) | | |
Contract cancellations | | | | | — | | | | | | — | | |
Legal expenses | | | | | — | | | | | | 99 | | |
Lease exit costs | | | | | — | | | | | | — | | |
Other | | | | | — | | | | | | (87) | | |
Total restructuring costs | | | | $ | — | | | | | $ | (40) | | |
| | | February 28, 2022 | | | Charges | | | Usage | | | May 31, 2022 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Severance and related costs | | | | $ | 44 | | | | | $ | — | | | | | $ | (44) | | | | | $ | — | | |
Contract cancellations | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Legal expenses | | | | | 32 | | | | | | — | | | | | | (32) | | | | | | — | | |
Lease exit costs | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Other | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total | | | | $ | 76 | | | | | $ | — | | | | | $ | (76) | | | | | $ | — | | |
| | | February 28, 2021 | | | Charges | | | Usage | | | May 31, 2021 | | ||||||||||||
| | | (In thousands) | | |||||||||||||||||||||
Severance and related costs | | | | $ | 2,666 | | | | | $ | (52) | | | | | $ | (1,632) | | | | | $ | 982 | | |
Contract cancellations | | | | | 123 | | | | | | — | | | | | | (123) | | | | | | — | | |
Legal expenses | | | | | 104 | | | | | | 99 | | | | | | (19) | | | | | | 184 | | |
Lease exit costs | | | | | 476 | | | | | | — | | | | | | (126) | | | | | | 350 | | |
Other | | | | | 4 | | | | | | (87) | | | | | | 83 | | | | | | — | | |
Total | | | | $ | 3,373 | | | | | $ | (40) | | | | | $ | (1,817) | | | | | $ | 1,516 | | |
| | | 31-May-22 | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| | | Candle- Lite | | | PartyLite | | | Combined | | | Corporate | | | Eliminations | | | Consolidated | | | | | | | ||||||||||||||||||||||||||||
Sales to external customers | | | | $ | 31,471 | | | | | | 20,280 | | | | | | 51,751 | | | | | | — | | | | | | — | | | | | $ | 51,751 | | | | | | | | ||||||||||
Intersegment sales | | | | $ | 3,743 | | | | | | — | | | | | | 3,743 | | | | | | — | | | | | | (3,743) | | | | | $ | — | | | | | | | | ||||||||||
Gross Profit | | | | $ | 5,149 | | | | | | 10,932 | | | | | | 16,081 | | | | | | — | | | | | | — | | | | | $ | 16,081 | | | | | | | | ||||||||||
Depreciation and amortization expense | | | | $ | 671 | | | | | | 1,096 | | | | | | 1,767 | | | | | | — | | | | | | — | | | | | $ | 1,767 | | | | | | | | ||||||||||
Interest expense | | | | $ | 1,451 | | | | | | 296 | | | | | | 1,747 | | | | | | — | | | | | | — | | | | | $ | 1,747 | | | | | | | | ||||||||||
Income tax expense (benefit) | | | | $ | 16 | | | | | | (736) | | | | | | (720) | | | | | | 687 | | | | | | — | | | | | $ | (33) | | | | | | | | ||||||||||
Net income (loss) | | | | $ | 686 | | | | | | (2,175) | | | | | | (1,489) | | | | | | (1,959) | | | | | | — | | | | | $ | (3,448) | | | | | | | | ||||||||||
Total assets | | | | $ | 175,866 | | | | | | 92,590 | | | | | | 268,456 | | | | | | 6,407 | | | | | | (89,850) | | | | | $ | 185,013 | | | | | | | | ||||||||||
Capital expenditures | | | | $ | 314 | | | | | | 400 | | | | | | 714 | | | | | | — | | | | | | — | | | | | $ | 714 | | | | | | | |
| | | 31-May-21 | | |||||||||||||||||||||||||||||||||
| | | Candle- Lite | | | PartyLite | | | Combined | | | Corporate | | | Eliminations | | | Consolidated | | ||||||||||||||||||
Sales to external customers | | | | $ | 40,552 | | | | | | 32,194 | | | | | | 72,746 | | | | | | — | | | | | | — | | | | | $ | 72,746 | | |
Intersegment sales | | | | $ | (5,718) | | | | | | — | | | | | | (5,718) | | | | | | — | | | | | | 5,718 | | | | | $ | — | | |
Gross Profit | | | | $ | 4,784 | | | | | | 17,963 | | | | | | 22,747 | | | | | | — | | | | | | — | | | | | $ | 22,747 | | |
Depreciation and amortization expense | | | | $ | 678 | | | | | | 1,072 | | | | | | 1,750 | | | | | | — | | | | | | — | | | | | $ | 1,750 | | |
Interest expense | | | | $ | 1,586 | | | | | | 45 | | | | | | 1,631 | | | | | | — | | | | | | — | | | | | $ | 1,631 | | |
Income tax expense (benefit) | | | | $ | — | | | | | | (1,233) | | | | | | (1,233) | | | | | | 1,218 | | | | | | — | | | | | $ | (15) | | |
Net income (loss) | | | | $ | 549 | | | | | | 463 | | | | | | 1,012 | | | | | | (2,730) | | | | | | — | | | | | $ | (1,718) | | |
Total assets | | | | $ | 147,979 | | | | | | 71,267 | | | | | | 219,246 | | | | | | (4,346) | | | | | | (57,899) | | | | | $ | 157,001 | | |
Capital expenditures | | | | $ | 483 | | | | | | 351 | | | | | | 834 | | | | | | — | | | | | | — | | | | | $ | 834 | | |
| | | May 31 2022 | | | May 31 2021 | | ||||||
| | | (in thousands) | | |||||||||
Net sales to external customers | | | | | | | | | | | | | |
United States | | | | $ | 31,722 | | | | | $ | 43,633 | | |
Germany | | | | | 7,791 | | | | | | 10,916 | | |
France | | | | | 4,975 | | | | | | 8,170 | | |
Other foreign countries | | | | | 7,263 | | | | | | 10,027 | | |
| | | | $ | 51,751 | | | | | $ | 72,746 | | |
| | | May 31 2022 | | | February 2022 | | ||||||
| | | (in thousands) | | |||||||||
Long-lived assets | | | | | | | | | | | | | |
United States | | | | $ | 28,794 | | | | | $ | 30,890 | | |
Foreign countries | | | | | 721 | | | | | | 703 | | |
| | | | $ | 29,515 | | | | | $ | 31,593 | | |
| FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-130 | | | |
| | | | | F-131 | | | |
| | | | | F-132 | | | |
| | | | | F-133 | | | |
| | | | | F-134 | | |
| | | | | | | | | As at March 31, | | |||||||||
| | | Note | | | 2022 | | | 2021 | | |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | | 3,093,910 | | | | | | 3,158,891 | | |
Restricted cash balance | | | | | | | | | | | 25,572,218 | | | | | | 396,442 | | |
Accounts receivable, net of allowance for doubtful accounts of $ 1,205,916 and $ 969,312, respectively | | | | | 3 | | | | | | 12,620,975 | | | | | | 16,283,709 | | |
Inventories | | | | | 4 | | | | | | 36,099,314 | | | | | | 23,018,674 | | |
Prepaid expenses and other current assets | | | | | 5 | | | | | | 6,675,723 | | | | | | 5,091,394 | | |
Total current assets | | | | | | | | | | | 84,062,140 | | | | | | 47,949,110 | | |
Investments | | | | | | | | | | | 24,895 | | | | | | 25,990 | | |
Property, plant and equipment, net | | | | | 6 | | | | | | 28,329,717 | | | | | | 31,749,657 | | |
Intangible assets, net | | | | | 7 | | | | | | 208,551 | | | | | | 251,845 | | |
Equity accounted investment | | | | | 8 | | | | | | 2,142,242 | | | | | | 1,148,624 | | |
Other non-current assets | | | | | 9 | | | | | | 3,635,810 | | | | | | 4,211,768 | | |
Deferred tax assets | | | | | 18 | | | | | | 257,377 | | | | | | — | | |
Total assets | | | | | | | | | | | 118,660,732 | | | | | | 85,336,994 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | | | | | | | |
Short-term debt | | | | | 10 | | | | | | 52,690,489 | | | | | | 129,558,557 | | |
Accounts payables | | | | | | | | | | | 35,203,595 | | | | | | 31,203,774 | | |
Other current liabilities | | | | | 11 | | | | | | 37,790,075 | | | | | | 23,268,032 | | |
Total current liabilities | | | | | | | | | | | 125,684,159 | | | | | | 184,030,363 | | |
Long-term debt | | | | | 12 | | | | | | 140,489,431 | | | | | | 43,232,664 | | |
Employee compensation and benefits | | | | | 17 | | | | | | 548,544 | | | | | | 516,206 | | |
Other non-current liabilities | | | | | 13 | | | | | | — | | | | | | 805,891 | | |
Deferred tax liabilities | | | | | 18 | | | | | | 214,406 | | | | | | 119,226 | | |
Total liabilities | | | | | | | | | | | 266,936,540 | | | | | | 228,704,350 | | |
COMMITMENTS & CONTINGENCIES (Refer Note 14) | | | | | | | | | | | | | | | | | | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
Common stock, $ 0.2723 par value per share, 6,880,000 shares authorized, issued and outstanding | | | | | 15 | | | | | | 1,873,433 | | | | | | 1,873,433 | | |
Accumulated deficit | | | | | | | | | | | (147,624,303) | | | | | | (142,469,033) | | |
Foreign currency translation reserve | | | | | | | | | | | 3,881,396 | | | | | | 3,464,361 | | |
Total stockholders’ deficit | | | | | | | | | | | (141,869,474) | | | | | | (137,131,239) | | |
Non-controlling interest | | | | | | | | | | | (6,406,334) | | | | | | (6,236,117) | | |
Total deficit | | | | | | | | | | | (148,275,808) | | | | | | (143,367,356) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | 118,660,732 | | | | | | 85,336,994 | | |
| | | | | | For year ended March 31, | | |||||||||
| | | Note | | | 2022 | | | 2021 | | ||||||
Revenue, net | | | 16 | | | | | 103,067,920 | | | | | | 125,402,233 | | |
Cost of goods sold | | | | | | | | 77,898,601 | | | | | | 99,326,930 | | |
Gross profit | | | | | | | | 25,169,319 | | | | | | 26,075,303 | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Selling, general & administrative expenses | | | | | | | | 27,378,907 | | | | | | 25,968,325 | | |
Depreciation & amortization | | | 6 & 7 | | | | | 2,528,367 | | | | | | 2,764,189 | | |
Total operating expenses | | | | | | | | 29,907,274 | | | | | | 28,732,514 | | |
Operating loss before income taxes and share of profit on equity accounted investments | | | | | | | | (4,737,955) | | | | | | (2,657,211) | | |
OTHER INCOME (EXPENSE) | | | | | | | | | | | | | | | | |
Interest income | | | | | | | | 242,210 | | | | | | 210,875 | | |
Interest expense | | | | | | | | (9,914,702) | | | | | | (11,070,335) | | |
Other income, net | | | | | | | | 6,984,507 | | | | | | 1,351,202 | | |
Total other income (expense) | | | | | | | | (2,687,985) | | | | | | (9,508,258) | | |
Loss before income taxes and share of profit on equity accounted investment | | | | | | | | (7,425,940) | | | | | | (12,165,469) | | |
Benefit (provision) for income taxes | | | 18 | | | | | 342,703 | | | | | | (364,846) | | |
Net loss before share of profit on equity accounted investment | | | | | | | | (7,083,237) | | | | | | (12,530,315) | | |
Share of profit from equity accounted investment | | | | | | | | 1,709,576 | | | | | | 1,419,346 | | |
Net loss after share of profit on equity accounted investment | | | | | | | | (5,373,661) | | | | | | (11,110,969) | | |
Net loss attributable to non-controlling interest | | | | | | | | (223,311) | | | | | | (719,434) | | |
Net loss attributable to owners | | | | | | | | (5,150,350) | | | | | | (10,391,535) | | |
Other comprehensive income (loss) | | | | | | | | | | | | | | | | |
Cumulative translation adjustments | | | | | | | | 451,750 | | | | | | (225,751) | | |
Total other comprehensive income (loss) | | | | | | | | 451,750 | | | | | | (225,751) | | |
Other comprehensive income (loss) attributable to non-controlling interest, net of tax | | | | | | | | 28,297 | | | | | | (7,383) | | |
Other comprehensive income (loss) attributable to owners | | | | | | | | 423,453 | | | | | | (218,368) | | |
Total comprehensive loss | | | | | | | | (4,921,911) | | | | | | (11,336,720) | | |
Weighted average common shares outstanding | | | | | | | | 6,880,000 | | | | | | 6,880,000 | | |
Basic loss per common share | | | | | | | | (0.75) | | | | | | (1.51) | | |
Diluted loss per common share | | | | | | | | (0.75) | | | | | | (1.51) | | |
| | | Common stock | | | Accumulated deficit | | | Accumulated other comprehensive income | | | Non-controlling interest | | | Total stockholders’ deficit | | |||||||||||||||||||||
| | | Nos. of shares | | | Par Value | | ||||||||||||||||||||||||||||||
Balance as at April 01, 2020 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (132,077,498) | | | | | | 3,682,729 | | | | | | (5,509,300) | | | | | | (132,030,636) | | |
Net loss for the year | | | | | — | | | | | | — | | | | | | (10,391,535) | | | | | | — | | | | | | (719,434) | | | | | | (11,110,969) | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | (218,368) | | | | | | (7,383) | | | | | | (225,751) | | |
Balance as at March 31, 2021 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (142,469,033) | | | | | | 3,464,361 | | | | | | (6,236,117) | | | | | | (143,367,356) | | |
Balance as at April 01, 2021 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (142,469,033) | | | | | | 3,464,361 | | | | | | (6,236,117) | | | | | | (143,367,356) | | |
Net loss for the year | | | | | — | | | | | | — | | | | | | (5,150,350) | | | | | | — | | | | | | (223,311) | | | | | | (5,373,661) | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | 423,453 | | | | | | 28,297 | | | | | | 451,750 | | |
Transactions with non-controlling interest* | | | | | | | | | | | | | | | | | (4,920) | | | | | | (6,418) | | | | | | 24,797 | | | | | | 13,459 | | |
Balance as at March 31, 2022 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (147,624,303) | | | | | | 3,881,396 | | | | | | (6,406,334) | | | | | | (148,275,808) | | |
| | | For year ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
(A) CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss for the year | | | | | (5,373,661) | | | | | | (11,110,969) | | |
Adjustments: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 2,528,367 | | | | | | 2,764,189 | | |
Amortization of debt issuance cost | | | | | 209,445 | | | | | | — | | |
Tax (benefit) provision (net) | | | | | (342,703) | | | | | | 364,846 | | |
Loss on deconsolidation of a subsidiary | | | | | — | | | | | | 463,134 | | |
Provision for gratuity | | | | | 49,531 | | | | | | 34,903 | | |
Provision for compensated absence | | | | | 44,807 | | | | | | (27,863) | | |
Provision for Corporate Social Responsibility (“CSR”) expense | | | | | 51,400 | | | | | | 147,694 | | |
(Profit)/ loss on sale of property, plant, and equipment | | | | | (693,405) | | | | | | 82,608 | | |
Share of profit from equity accounted investments | | | | | (1,709,576) | | | | | | (1,419,346) | | |
Gain on forgiveness of loan | | | | | (4,367,863) | | | | | | — | | |
Effect of foreign exchange fluctuation | | | | | (977,003) | | | | | | 2,786,356 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | 3,476,711 | | | | | | (220,798) | | |
Inventories | | | | | (13,599,249) | | | | | | 16,580,299 | | |
Other current assets | | | | | (538,927) | | | | | | 3,409,135 | | |
Accounts payables and other liabilities | | | | | 5,443,973 | | | | | | (14,055,913) | | |
Cash used in operating activities | | | | | (15,798,153) | | | | | | (201,725) | | |
(B) CASH FLOW FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Disposal (purchase) of property, plant, and equipment / intangible assets (net) | | | | | 1,479,243 | | | | | | (141,487) | | |
Dividend received from associate | | | | | 715,958 | | | | | | — | | |
Net cash generated from (used in) investing activities | | | | | 2,195,201 | | | | | | (141,487) | | |
(C) CASH FLOW FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Short term debt, net | | | | | 1,749,625 | | | | | | 486,779 | | |
Long term debt, net | | | | | (9,400,690) | | | | | | 539,642 | | |
Issue of convertible debentures | | | | | 47,444,490 | | | | | | — | | |
Principal payments under capital lease | | | | | (662,004) | | | | | | (918,151) | | |
Issue of share capital to non-controlling interests | | | | | 13,459 | | | | | | — | | |
Net cash generated from financing activities | | | | | 39,144,880 | | | | | | 108,270 | | |
Net increase (decrease) in cash and cash equivalents | | | | | 25,541,928 | | | | | | (234,943) | | |
Cash, cash equivalents, and restricted cash at the beginning of the year | | | | | 3,555,333 | | | | | | 4,507,328 | | |
Reduction due to deconsolidation of a subsidiary | | | | | — | | | | | | (72,163) | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | | | | | (431,133) | | | | | | (644,890) | | |
Cash and cash equivalents and restricted cash at the end of the year | | | | | 28,666,128 | | | | | | 3,555,333 | | |
Supplemental cash flow disclosure: | | | | | | | | | | | | | |
Income tax paid (net of refunds) | | | | | 484,457 | | | | | | 37,633 | | |
Interest paid | | | | | 4,656,537 | | | | | | 7,923,389 | | |
Reconciliation of cash and cash equivalents and restricted cash reported in the consolidated balance sheets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | 3,093,910 | | | | | | 3,158,891 | | |
Restricted cash | | | | | 25,572,218 | | | | | | 396,442 | | |
Total cash, cash equivalents, and restricted cash reported in the statement of cash flows | | | | | 28,666,128 | | | | | | 3,555,333 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Restructuring of debt | | | | | 22,180,174 | | | | | | — | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Cash on hand | | | | | 18,151 | | | | | | 17,344 | | |
Balances with banks | | | | | 3,075,759 | | | | | | 3,141,547 | | |
Restricted cash balances | | | | | 25,572,218 | | | | | | 396,442 | | |
Total cash and cash equivalent (including restricted cash balance) | | | | | 28,666,128 | | | | | | 3,555,333 | | |
| Building | | | 30 – 60 years | |
| Plant and machinery | | | 3 – 15 years | |
| Office equipment, canteen equipment and lab equipment | | | 3 – 15 years | |
| Electronic fittings and furniture | | | 3 – 15 years | |
| Computer and accessories | | | 3 – 10 years | |
| Vehicles | | | 3 – 10 years | |
| Leasehold improvements | | | 3 – 10 years | |
| Software | | | 3 – 10 years | |
| Trademark | | | 10 years | |
| Customer relationship | | | 10 years | |
Assets and liabilities measured at fair value on a recurring basis | | | Fair Value | | | Fair Value hierarchy | |
Compulsorily convertible debentures | | | | | | | |
– Fair value as on March 31, 2022 | | | 41,040,922 | | | Level 3 | |
– Fair value as on March 31, 2021 | | | Not Applicable | | | Not Applicable | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Accounts receivable | | | | | 13,826,891 | | | | | | 17,253,021 | | |
Less: Allowance for doubtful accounts | | | | | (1,205,916) | | | | | | (969,312) | | |
Accounts receivable, net | | | | | 12,620,975 | | | | | | 16,283,709 | | |
The movement in allowance for doubtful accounts is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the year | | | | | (969,312) | | | | | | (1,333,304) | | |
Net movement including (allowance)/reversals | | | | | (236,604) | | | | | | 363,992 | | |
Balance as at end of the year | | | | | (1,205,916) | | | | | | (969,312) | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Raw materials and components | | | | | 20,792,890 | | | | | | 18,449,002 | | |
Work in progress and semi-finished goods | | | | | 81,031 | | | | | | 94,364 | | |
Finished goods | | | | | 19,859,027 | | | | | | 11,371,577 | | |
Packing material | | | | | 726,175 | | | | | | 1,178,211 | | |
Consumables | | | | | 99,765 | | | | | | 90,506 | | |
Less: Provision for slow-moving, damaged, and excess inventory | | | | | (5,459,574) | | | | | | (8,164,986) | | |
Inventories, net | | | | | 36,099,314 | | | | | | 23,018,674 | | |
The movement in provision for slow-moving, damaged, and excess inventory is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the year | | | | | (8,164,986) | | | | | | (7,082,904) | | |
Net movement including (provision) reversals | | | | | 2,705,412 | | | | | | (1,082,082) | | |
Balance as at end of the year | | | | | (5,459,574) | | | | | | (8,164,986) | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Balance with statutory / government authorities | | | | | 3,503,213 | | | | | | 2,932,719 | | |
Income tax receivable | | | | | 870,658 | | | | | | 201,149 | | |
Interest accrued | | | | | 5,666 | | | | | | 19,624 | | |
Prepaid expenses | | | | | 849,274 | | | | | | 426,962 | | |
Security deposits | | | | | 19,791 | | | | | | 33,235 | | |
Other advances | | | | | 1,427,121 | | | | | | 1,477,705 | | |
| | | | | 6,675,723 | | | | | | 5,091,394 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Land [refer note 12(1), 12(2) and 12(5)] | | | | | 9,256,243 | | | | | | 9,277,919 | | |
Building [refer note 12(3), 12(4), 12(5) and 12(7)] | | | | | 17,542,540 | | | | | | 18,779,178 | | |
Plant and machinery [refer note 12(3), 12(4) and 12(5)] | | | | | 21,069,345 | | | | | | 21,209,881 | | |
Computer and accessories | | | | | 6,522,666 | | | | | | 6,562,442 | | |
Leasehold improvements | | | | | 2,455,639 | | | | | | 2,451,432 | | |
Office equipment, canteen equipment and lab equipment | | | | | 739,683 | | | | | | 779,478 | | |
Electronic fittings and furniture | | | | | 921,559 | | | | | | 986,941 | | |
Vehicles | | | | | 243,392 | | | | | | 233,735 | | |
Capital work-in-progress | | | | | 136,254 | | | | | | 137,732 | | |
Property, plant and equipment (gross) | | | | | 58,887,321 | | | | | | 60,418,738 | | |
Less: Accumulated depreciation | | | | | (30,557,604) | | | | | | (28,669,081) | | |
Property, plant and equipment (net) | | | | | 28,329,717 | | | | | | 31,749,657 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Capitalized software | | | | | 329,321 | | | | | | 333,399 | | |
Trade marks | | | | | — | | | | | | 6,839 | | |
Customer relationship | | | | | — | | | | | | 4,500,000 | | |
Less: Accumulated amortization | | | | | (120,770) | | | | | | (4,588,393) | | |
Intangible assets, net | | | | | 208,551 | | | | | | 251,845 | | |
| 2023 | | | | | 33,366 | | |
| 2024 | | | | | 32,103 | | |
| 2025 | | | | | 31,353 | | |
| 2026 | | | | | 29,452 | | |
| 2027 | | | | | 29,333 | | |
| 2028 | | | | | 28,671 | | |
| 2029 | | | | | 24,273 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Total initial cost | | | | | — | | | | | | — | | |
Accumulated share of profits | | | | | 2,858,200 | | | | | | 1,148,624 | | |
Distribution received | | | | | (715,958) | | | | | | — | | |
Carrying value | | | | | 2,142,242 | | | | | | 1,148,624 | | |
Summarized financial information of Goose Creek Candles LLC | | | | | | | | | | | | | |
| | | As at March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Current assets | | | | | 15,542,649 | | | | | | 8,938,143 | | |
Non-current assets | | | | | 3,107,305 | | | | | | 3,143,442 | | |
Current liabilities | | | | | 9,328,172 | | | | | | 6,447,796 | | |
Non-current liabilities | | | | | 5,037,533 | | | | | | 3,285,168 | | |
| | | For the year ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Net sales or gross revenue | | | | | 47,442,737 | | | | | | 30,610,441 | | |
Gross profit | | | | | 20,599,361 | | | | | | 10,805,808 | | |
Net income | | | | | 3,419,152 | | | | | | 2,838,693 | | |
Net income attributable to the Group | | | | | 1,709,576 | | | | | | 1,419,346 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Security deposits | | | | | 400,308 | | | | | | 723,942 | | |
Capital advances | | | | | — | | | | | | 119,045 | | |
Other advances* | | | | | 3,234,199 | | | | | | 3,367,435 | | |
Interest accrued | | | | | 1,303 | | | | | | 1,346 | | |
| | | | | 3,635,810 | | | | | | 4,211,768 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Post-shipment credit | | | | | — | | | | | | 8,251,376 | | |
Pre-shipment credit | | | | | — | | | | | | 5,047,857 | | |
Inter corporate loans | | | | | 7,260,600 | | | | | | 5,002,604 | | |
Working capital loan (refer note 12(8)) | | | | | 41,279,889 | | | | | | 101,888,857 | | |
Notes payable due within one year | | | | | 4,150,000 | | | | | | 9,367,863 | | |
| | | | | 52,690,489 | | | | | | 129,558,557 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Accrued payroll and related expenses | | | | | 1,412,434 | | | | | | 2,190,193 | | |
Advance from customers | | | | | 558,740 | | | | | | 2,335,118 | | |
Current maturities of long-term debt | | | | | 19,680,921 | | | | | | 3,681,444 | | |
Current maturities of capital lease obligations | | | | | 707,452 | | | | | | 713,549 | | |
Interest accrued | | | | | 6,524,961 | | | | | | 6,808,357 | | |
Other outstanding expenses* | | | | | 8,905,567 | | | | | | 7,539,371 | | |
| | | | | 37,790,075 | | | | | | 23,268,032 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Term loan from bank | | | | | 47,543,218 | | | | | | 28,542,039 | | |
Loans payable to affiliates | | | | | 15,056,975 | | | | | | 14,690,625 | | |
Optionally convertible debentures | | | | | | | | | | | | | |
– measured at amortized cost | | | | | 4,110,714 | | | | | | — | | |
Compulsorily convertible debentures | | | | ||||||||||
– measured at fair value on recurring basis | | | | | 41,040,922 | | | | | | — | | |
– measured at amortized cost | | | | | 32,737,602 | | | | | | — | | |
| | | | | 140,489,431 | | | | | | 43,232,664 | | |
| Term loan | | | | $ | 3,905,602 | | |
| FITL 1 | | | | $ | 350,889 | | |
| FITL 2 | | | | $ | 319,973 | | |
| Term loan | | | | $ | 1,837,329 | | |
| FITL 1 | | | | $ | 154,191 | | |
| FITL 2 | | | | $ | 167,819 | | |
| Term loan | | | | $ | 992,101 | | |
| FITL 1 | | | | $ | 36,666 | | |
| FITL 2 | | | | $ | 63,721 | | |
| Term loan | | | | $ | 1,348,436 | | |
| FITL 1 | | | | $ | 55,647 | | |
| FITL 2 | | | | $ | 27,803 | | |
| Working capital term loan | | | | $ | 3,712,091 | | |
| Funded interest term loan | | | | $ | 162,796 | | |
| Compulsorily convertible debentures (at amortized cost) | | | | $ | 1,411,734 | | |
| Optionally convertible debentures (at amortized cost) | | | | $ | 4,237,849 | | |
| Working capital loan (presented as short-term debt in note 10) | | | | $ | 41,279,889 | | |
| Term loan from bank | | | | $ | 31,475,862 | | |
| CCD (at amortized cost)* | | | | $ | 43,131,735 | | |
| 2023 | | | | $ | 19,680,921 | | |
| 2024 | | | | $ | 18,383,125 | | |
| 2025 | | | | $ | 20,865,497 | | |
| 2026 | | | | $ | 67,192,417 | | |
| 2027 and onwards | | | | $ | 34,177,065 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Capital lease obligation (net of current portion) | | | | | — | | | | | | 805,891 | | |
| | | | | — | | | | | | 805,891 | | |
| Minimum lease payments at inception | | | | | 3,132,294 | | |
| Imputed rate of interest | | | | | 5.50% | | |
| Amount of imputed interest | | | | | 258,170 | | |
| Present value of lease obligation at inception | | | | | 2,874,124 | | |
| Minimum lease payments for the fiscal year ending March 31, 2022: | | | | | | | |
| 2023 | | | | | 728,017 | | |
| Total minimum lease payments | | | | | 728,017 | | |
| Amount of imputed interest | | | | | 20,565 | | |
| Principal balance | | | | | 707,452 | | |
| – Current | | | | | 707,452 | | |
| – Non-current | | | | | — | | |
Year ending March 31 | | | Minimum lease payments | | | Minimum sublet income | | | Minimum lease payments, net | | |||||||||
2023 | | | | | 114,141 | | | | | | 89,591 | | | | | | 24,550 | | |
Total minimum future lease payments | | | | | 114,141 | | | | | | 89,591 | | | | | | 24,550 | | |
Year ending March 31 | | | | | | | |
2023 | | | | | 139,346 | | |
2024 | | | | | 42,326 | | |
Total minimum future lease payments | | | | | 181,672 | | |
Geography | | | March 31, | | |||||||||
| 2022 | | | 2021 | | ||||||||
India | | | | | 21,311,761 | | | | | | 22,437,237 | | |
United States of America | | | | | 61,207,679 | | | | | | 90,614,328 | | |
Australia | | | | | 5,226,051 | | | | | | 4,936,949 | | |
United Kingdom | | | | | 8,728,033 | | | | | | 6,647,265 | | |
Other countries | | | | | 6,594,396 | | | | | | 766,454 | | |
| | | | | 103,067,920 | | | | | | 125,402,233 | | |
| | | March 31, 2022 | | | March 31, 2021 | | ||||||
Net employee benefit expenses recognized in the employee cost | | | | | | | | | | | | | |
a) Changes in defined benefit obligations | | | | | | | | | | | | | |
Present value of obligation as at the beginning of the year | | | | | 793,317 | | | | | | 762,291 | | |
Interest cost | | | | | 50,194 | | | | | | 59,107 | | |
Current service cost | | | | | 78,553 | | | | | | 91,255 | | |
Remeasurements – net actuarial (gains)/ losses | | | | | (62,331) | | | | | | (100,710) | | |
Benefits paid | | | | | (34,221) | | | | | | (45,083) | | |
Foreign currency translation reserve | | | | | (25,726) | | | | | | 26,457 | | |
Present value of obligation as at the end of the year | | | | | 799,786 | | | | | | 793,317 | | |
b) Changes in fair value of the plan assets of the gratuity plan | | | | | | | | | | | | | |
Plan assets at the beginning of the year | | | | | 277,111 | | | | | | 297,670 | | |
Contribution by employer | | | | | — | | | | | | — | | |
| | | March 31, 2022 | | | March 31, 2021 | | ||||||
Benefits paid | | | | | (34,221) | | | | | | (45,083) | | |
Return on plan assets (incl. interest income) | | | | | 16,884 | | | | | | 14,750 | | |
Foreign currency translation reserve | | | | | (8,532) | | | | | | 9,774 | | |
Fair value of the plan assets at the end of the year | | | | | 251,242 | | | | | | 277,111 | | |
c) Expenses recognized in the consolidated statements of comprehensive loss | | | | | | | | | | | | | |
Current service cost | | | | | 78,553 | | | | | | 91,255 | | |
Interest cost and benefit obligation | | | | | 50,194 | | | | | | 59,107 | | |
Expected return on plan assets | | | | | (16,066) | | | | | | (19,230) | | |
Net actuarial (gain) loss recognized in the year | | | | | (63,149) | | | | | | (96,230) | | |
Changes in foreign currency translation reserves | | | | | — | | | | | | 606 | | |
Net benefit expense | | | | | 49,532 | | | | | | 35,508 | | |
d) Net amount recognized in the consolidated balance sheets | | | | | | | | | | | | | |
Present value of defined benefit obligation | | | | | (799,786) | | | | | | (793,317) | | |
Fair value of plan assets | | | | | 251,242 | | | | | | 277,111 | | |
Plan (liability) | | | | | (548,544) | | | | | | (516,206) | | |
|
Gratuity | | | March 31, 2022 | | | March 31, 2021 | | ||||||
Defined benefit obligation | | | | | (799,786) | | | | | | (793,317) | | |
Plan assets | | | | | 251,242 | | | | | | 277,111 | | |
Gratuity liability | | | | | (548,544) | | | | | | (516,206) | | |
| | | For the year ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Expected Group contributions during next financial year | | | | | — | | | | | | 67,222 | | |
Expected benefit payments during | | | | | | | | | | | | | |
Year 1 | | | | | 132,381 | | | | | | 124,170 | | |
Year 2 | | | | | 138,129 | | | | | | 120,004 | | |
Year 3 | | | | | 134,487 | | | | | | 133,079 | | |
Year 4 | | | | | 141,340 | | | | | | 131,210 | | |
Year 5 | | | | | 134,466 | | | | | | 134,518 | | |
Year 6 to Year 10 | | | | | 635,941 | | | | | | 615,144 | | |
| | | For the year ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Discount rate (p.a.) | | | | | 6.60% | | | | | | 6.30% | | |
Rate of compensation increase (p.a.) | | | | | 8.00% | | | | 13.00% until year 1 inclusive, then 8.00% | |
| | | For the year ended March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Discount rate (p.a.) | | | | | 6.60% | | | | | | 6.30% | | |
Rate of compensation increase (p.a.) | | | | | 8.00% | | | | 13.00% until year 1 inclusive, then 8.00% | | |||
Expected rate of return on plan assets (p.a.) | | | | | 7.00% | | | | | | 7.00% | | |
| As at March 31, 2021 | | | | $ | 210,899 | | |
| As at March 31, 2022 | | | | $ | 248,292 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
United States | | | | | (6,429,785) | | | | | | 7,146,760 | | |
India | | | | | 12,137,826 | | | | | | 3,591,922 | | |
Others | | | | | 8,323 | | | | | | 7,441 | | |
Total | | | | | 5,716,364 | | | | | | 10,746,123 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Current tax provision | | | | | | | | | | | | | |
United States – Federal | | | | | — | | | | | | — | | |
United States – State and local | | | | | — | | | | | | — | | |
India | | | | | (9,309) | | | | | | 168,642 | | |
Total current tax (benefit) provision | | | | | (9,309) | | | | | | 168,642 | | |
Deferred tax provision | | | | | | | | | | | | | |
United States – Federal | | | | | 112,201 | | | | | | 52,669 | | |
United States – State and local | | | | | — | | | | | | — | | |
India | | | | | (454,059) | | | | | | (17,177) | | |
Total deferred tax (benefit) provision | | | | | (341,858) | | | | | | 35,492 | | |
Tax pertaining to earlier years | | | | | | | | | | | | | |
India | | | | | 8,464 | | | | | | 160,712 | | |
Total tax pertaining to earlier years | | | | | 8,464 | | | | | | 160,712 | | |
(Benefit) provision for income taxes | | | | | (342,703) | | | | | | 364,846 | | |
| Computed expected tax | | | | | (907,908) | | | | | | (2,467,001) | | |
| State income taxes (net of federal benefit) | | | | | (109,882) | | | | | | (124,055) | | |
| Permanent difference | | | | | (917,251) | | | | | | — | | |
| Non-deductible expenses, net | | | | | (1,189,663) | | | | | | 223,538 | | |
| Valuation allowance | | | | | 2,672,764 | | | | | | 2,469,310 | | |
| Tax of earlier year | | | | | 8,464 | | | | | | 160,712 | | |
| Others | | | | | 100,773 | | | | | | 102,342 | | |
| (Benefit) provision for income tax | | | | | (342,703) | | | | | | 364,846 | | |
| Effective tax rate | | | | | -6.00% | | | | | | 3.40% | | |
| | | March 31, 2022 | | | March 31, 2021 | | ||||||||||||||||||
| | | US jurisdiction | | | India jurisdiction | | | US jurisdiction | | | India jurisdiction | | ||||||||||||
Amortization and depreciation | | | | | 2,732,979 | | | | | | 31,359 | | | | | | 2,586,502 | | | | | | 19,504 | | |
Accrued liabilities and other reserves | | | | | 3,284,282 | | | | | | 650,759 | | | | | | 2,426,039 | | | | | | 246,568 | | |
Interest limitation | | | | | 6,888,114 | | | | | | — | | | | | | 5,569,912 | | | | | | — | | |
Tax credit carryforward | | | | | — | | | | | | — | | | | | | — | | | | | | 178,655 | | |
| | | March 31, 2022 | | | March 31, 2021 | | ||||||||||||||||||
| | | US jurisdiction | | | India jurisdiction | | | US jurisdiction | | | India jurisdiction | | ||||||||||||
Net operating loss carryover | | | | | 31,591,565 | | | | | | 1,311,411 | | | | | | 31,931,398 | | | | | | 935,030 | | |
Total deferred tax asset before valuation allowance | | | | | 44,496,940 | | | | | | 1,993,530 | | | | | | 42,513,851 | | | | | | 1,379,757 | | |
Valuation allowance | | | | | (43,811,934) | | | | | | (1,343,117) | | | | | | (41,526,777) | | | | | | (955,509) | | |
Total deferred tax asset, net of valuation allowance | | | | | 685,006 | | | | | | 650,413 | | | | | | 987,074 | | | | | | 424,248 | | |
Deferred tax liability | | | | | | | | | | | | | | | | | | | | | | | | | |
Amortization and depreciation | | | | | — | | | | | | (393,036) | | | | | | — | | | | | | (441,270) | | |
Intangibles/ Goodwill | | | | | (875,370) | | | | | | — | | | | | | (770,398) | | | | | | — | | |
Passthrough income | | | | | (24,042) | | | | | | — | | | | | | (318,880) | | | | | | — | | |
Deferred tax liability | | | | | (899,413) | | | | | | (393,036) | | | | | | (1,089,278) | | | | | | (441,270) | | |
Net deferred tax (liability) asset | | | | | (214,407) | | | | | | 257,377 | | | | | | (102,204) | | | | | | (17,022) | | |
|
| Ultimate holding company: | |
| M/s. TGP Trading FZCO, U.A.E. | |
| Direct subsidiaries: | |
| Primacy Industries Limited | |
| Primacy Global Enterprises Private Limited | |
| Step-down subsidiary: | |
| MVP International Inc. | |
| Associate/ Significant influence: | |
| Goose Creek Candles LLC | |
| Minority owner: | |
| Manipal Media Network Limited | |
| Directors: | |
| Ms. Sandhya Satish Pai | |
| Mr. Gautham Pai | |
| Mr. Satish Pai | |
| Ms. Vanita Pai | |
Nature of Transactions/Parties | | | For the year ended March 31, | | |||||||||
| 2022 | | | 2021 | | ||||||||
Sale of goods: | | | | | | | | | | | | | |
– Goose Creek Candles LLC | | | | | — | | | | | | 82,790 | | |
Interest received on advance given: | | | | | | | | | | | | | |
– Goose Creek Candles LLC | | | | | 237,557 | | | | | | 237,557 | | |
Interest expense on loan taken: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 1,060,720 | | | | | | 1,074,716 | | |
Expenses incurred by Company on behalf of: | | | | | | | | | | | | | |
– Goose Creek Candles LLC | | | | | 125,337 | | | | | | 149,855 | | |
– Manipal Media Network Limited | | | | | 67,892 | | | | | | 112,870 | | |
Expenses incurred on behalf of Company by: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 53,890 | | | | | | 121,949 | | |
Nature of Transactions/Parties | | | As at year ended March 31, | | |||||||||
| 2022 | | | 2021 | | ||||||||
Accounts receivable: | | | | | | | | | | | | | |
– Goose Creek Candles LLC | | | | | — | | | | | | 64,943 | | |
– Manipal Media Network Limited | | | | | 8,587 | | | | | | 37 | | |
Accounts payable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | — | | | | | | 589 | | |
Advance receivable: | | | | | | | | | | | | | |
– Goose Creek Candles LLC | | | | | 3,234,199 | | | | | | 3,349,141 | | |
– M/s. TGP Trading FZCO | | | | | 100,000 | | | | | | 100,000 | | |
Trade advances: | | | | | | | | | | | | | |
– Goose Creek Candles LLC | | | | | 96,823 | | | | | | 96,823 | | |
Loan payable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 13,249,925 | | | | | | 13,249,925 | | |
– Mr. Gautham Pai | | | | | 1,807,050 | | | | | | 1,440,700 | | |
Interest payable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 4,430,171 | | | | | | 3,369,351 | | |
Receivable from Director: | | | | | | | | | | | | | |
– Mr. Gautham Pai | | | | | — | | | | | | 546 | | |
– Mr. Satish Pai | | | | | — | | | | | | 13,698 | | |
Geography | | | March 31, | | |||||||||
| 2022 | | | 2021 | | ||||||||
India | | | | | 21,311,761 | | | | | | 22,437,237 | | |
United States of America | | | | | 61,207,679 | | | | | | 90,614,328 | | |
Australia | | | | | 5,226,051 | | | | | | 4,936,949 | | |
United Kingdom | | | | | 8,728,033 | | | | | | 6,647,265 | | |
Other countries | | | | | 6,594,396 | | | | | | 766,454 | | |
| | | | | 103,067,920 | | | | | | 125,402,233 | | |
| | | March 31, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
United States of America | | | | | 22,995,849 | | | | | | 25,891,553 | | |
India | | | | | 5,333,868 | | | | | | 5,858,104 | | |
| | | | | 28,329,717 | | | | | | 31,749,657 | | |
| | | | | F-170 | | | |
| CONSOLIDATED FINANCIAL STATEMENTS | | | | | | | |
| | | | | F-171 | | | |
| | | | | F-172 | | | |
| | | | | F-173 | | | |
| | | | | F-174 | | | |
| | | | | F-175 | | |
| | | | | | | | | As at March 31, | | |||||||||
| | | Note | | | 2021 | | | 2020 | | |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | | 3,158,891 | | | | | | 2,166,498 | | |
Restricted cash balance | | | | | | | | | | | 396,442 | | | | | | 2,340,830 | | |
Accounts receivable, net of allowance of 969,312 and 1,333,304, respectively | | | | | 3 | | | | | | 16,283,709 | | | | | | 15,825,688 | | |
Inventories | | | | | 4 | | | | | | 23,018,674 | | | | | | 39,292,964 | | |
Prepaid expenses and other current assets | | | | | 5 | | | | | | 5,091,394 | | | | | | 5,534,188 | | |
Total current assets | | | | | | | | | | | 47,949,110 | | | | | | 65,160,168 | | |
Investments | | | | | | | | | | | 25,990 | | | | | | 33,316 | | |
Property, plant and equipment, net | | | | | 6 | | | | | | 31,749,657 | | | | | | 33,306,062 | | |
Intangible assets, net | | | | | 7 | | | | | | 251,845 | | | | | | 501,993 | | |
Equity accounted investments | | | | | 8 | | | | | | 1,148,624 | | | | | | — | | |
Other non-current assets | | | | | 9 | | | | | | 4,211,768 | | | | | | 3,745,247 | | |
Total assets | | | | | | | | | | | 85,336,994 | | | | | | 102,746,786 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | | | | | | | |
Short-term debt | | | | | 10 | | | | | | 129,558,557 | | | | | | 125,404,449 | | |
Accounts payables | | | | | | | | | | | 31,203,774 | | | | | | 44,803,274 | | |
Other current liabilities | | | | | 11 | | | | | | 23,268,032 | | | | | | 25,693,667 | | |
Total current liabilities | | | | | | | | | | | 184,030,363 | | | | | | 195,901,390 | | |
Long-term debt | | | | | 12 | | | | | | 43,232,664 | | | | | | 36,856,856 | | |
Employee compensation and benefits | | | | | 17 | | | | | | 516,206 | | | | | | 464,621 | | |
Deferred tax liabilities, net | | | | | 18 | | | | | | 119,226 | | | | | | 27,856 | | |
Other non-current liabilities | | | | | 13 | | | | | | 805,891 | | | | | | 1,255,977 | | |
Liability towards equity accounted investments | | | | | | | | | | | | | | | | | 270,722 | | |
Total liabilities | | | | | | | | | | | 228,704,350 | | | | | | 234,777,422 | | |
Commitments & contingencies (refer note 14) | | | | | | | | | | | | | | | | | | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
Common stock, $0.2723 par value per share, 6,880,000 shares authorized, issued and outstanding | | | | | 15 | | | | | | 1,873,433 | | | | | | 1,873,433 | | |
Accumulated other comprehensive income | | | | | | | | | | | 3,464,361 | | | | | | 3,682,729 | | |
Accumulated deficit | | | | | | | | | | | (142,469,033) | | | | | | (132,077,498) | | |
Total stockholders’ deficit | | | | | | | | | | | (137,131,239) | | | | | | (126,521,336) | | |
Non-controlling interest | | | | | | | | | | | (6,236,117) | | | | | | (5,509,300) | | |
Total deficit | | | | | | | | | | | (143,367,356) | | | | | | (132,030,636) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | 85,336,994 | | | | | | 102,746,786 | | |
| | | | | | For the years ended March 31, | | |||||||||
| | | Note | | | 2021 | | | 2020 | | ||||||
Revenue, net | | | 16 | | | | | 125,402,233 | | | | | | 154,568,313 | | |
Cost of goods sold | | | | | | | | 99,326,930 | | | | | | 133,312,640 | | |
Gross profit | | | | | | | | 26,075,303 | | | | | | 21,255,673 | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Selling, general & administrative expenses | | | | | | | | 25,968,325 | | | | | | 41,623,030 | | |
Depreciation & amortization | | | 6 & 7 | | | | | 2,764,189 | | | | | | 2,730,359 | | |
Total operating expenses | | | | | | | | 28,732,514 | | | | | | 44,353,389 | | |
Loss from operations before other income (expense) and share of profit on equity accounted investments | | | | | | | | (2,657,211) | | | | | | (23,097,716) | | |
OTHER INCOME/(EXPENSE) | | | | | | | | | | | | | | | | |
Interest income | | | | | | | | 210,875 | | | | | | 322,668 | | |
Interest expense | | | | | | | | (11,070,335) | | | | | | (13,280,314) | | |
Other income, net | | | | | | | | 1,351,202 | | | | | | 3,469,412 | | |
Total other (expense) | | | | | | | | (9,508,258) | | | | | | (9,488,234) | | |
Loss before income taxes and share of profit on equity accounted investments | | | | | | | | (12,165,469) | | | | | | (32,585,950) | | |
Provision for income taxes | | | 18 | | | | | (364,846) | | | | | | (285,443) | | |
Net loss before share of profit on equity accounted investments | | | | | | | | (12,530,315) | | | | | | (32,871,393) | | |
Share of profit on equity accounted investment | | | 8 | | | | | 1,419,346 | | | | | | 38,419 | | |
Net loss after share of profit on equity accounted investments | | | | | | | | (11,110,969) | | | | | | (32,832,974) | | |
Net loss attributable to noncontrolling interest | | | | | | | | (719,434) | | | | | | (2,241,005) | | |
Net loss attributable to owners | | | | | | | | (10,391,535) | | | | | | (30,591,969) | | |
Other comprehensive (loss)/ income | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | | | | | | (225,751) | | | | | | 512,934 | | |
Total other comprehensive (loss)/ income | | | | | | | | (225,751) | | | | | | 512,934 | | |
Other comprehensive (loss)/ income attributable to noncontrolling interest | | | | | | | | (7,383) | | | | | | 25,682 | | |
Other comprehensive (loss)/ income attributable to owners | | | | | | | | (218,368) | | | | | | 487,252 | | |
Total comprehensive loss | | | | | | | | (11,336,720) | | | | | | (32,320,040) | | |
Weighted average common shares outstanding | | | | | | | | 6,880,000 | | | | | | 6,880,000 | | |
Basic loss per common share | | | | | | | | (1.51) | | | | | | (4.45) | | |
Diluted loss per common share | | | | | | | | (1.51) | | | | | | (4.45) | | |
| | | Common stock | | | Accumulated deficit | | | Accumulated other comprehensive income | | | Non-controlling interest | | | Total stockholders’ deficit | | |||||||||||||||||||||
| | | Nos. of shares | | | Par value | | ||||||||||||||||||||||||||||||
Balance as at April 01, 2019 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (101,278,506) | | | | | | 3,195,477 | | | | | | (3,501,000) | | | | | | (99,710,596) | | |
Net loss for the year | | | | | — | | | | | | — | | | | | | (30,591,969) | | | | | | — | | | | | | (2,241,005) | | | | | | (32,832,974) | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | 487,252 | | | | | | 25,682 | | | | | | 512,934 | | |
Transactions with non-controlling interest* | | | | | — | | | | | | — | | | | | | (207,023) | | | | | | — | | | | | | 207,023 | | | | | | — | | |
Balance as at March 31, 2020 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (132,077,498) | | | | | | 3,682,729 | | | | | | (5,509,300) | | | | | | (132,030,636) | | |
Net loss for the year | | | | | — | | | | | | — | | | | | | (10,391,535) | | | | | | — | | | | | | (719,434) | | | | | | (11,110,969) | | |
Other comprehensive loss | | | | | — | | | | | | — | | | | | | — | | | | | | (218,368) | | | | | | (7,383) | | | | | | (225,751) | | |
Balance as at March 31, 2021 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (142,469,033) | | | | | | 3,464,361 | | | | | | (6,236,117) | | | | | | (143,367,356) | | |
| | | For the years ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net loss for the year | | | | | (11,110,969) | | | | | | (32,832,974) | | |
Adjustments: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 2,764,189 | | | | | | 2,730,359 | | |
Tax expense (net) | | | | | 364,846 | | | | | | 285,443 | | |
Loss on deconsolidation of a subsidiary | | | | | 463,134 | | | | | | — | | |
Provision for gratuity | | | | | 34,903 | | | | | | 111,555 | | |
Provision for corporate social responsibility (“CSR”) | | | | | 147,694 | | | | | | — | | |
Loss on sale of property, plant and equipment | | | | | 82,608 | | | | | | 19 | | |
Share of profit on equity accounted investment | | | | | (1,419,346) | | | | | | (38,419) | | |
Effect of foreign exchange fluctuation | | | | | 2,786,356 | | | | | | (2,628,553) | | |
| | | | | (5,886,585) | | | | | | (32,372,570) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivables | | | | | (220,798) | | | | | | (2,787,168) | | |
Inventories | | | | | 16,580,299 | | | | | | 8,736,263 | | |
Prepaid expenses and other current assets | | | | | 3,409,135 | | | | | | (1,434,854) | | |
Accounts payables and other liabilities | | | | | (14,083,776) | | | | | | 36,693,612 | | |
Cash (used in) generated from operating activities | | | | | (201,725) | | | | | | 8,835,283 | | |
CASH FLOW FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Purchase of property, plant and equipment and intangible assets | | | | | (146,090) | | | | | | (1,501,867) | | |
Sale of property, plant and equipment and intangible assets | | | | | 4,603 | | | | | | 433 | | |
Net cash used in investing activities | | | | | (141,487) | | | | | | (1,501,434) | | |
CASH FLOW FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Short term debt, net | | | | | 486,779 | | | | | | 1,724,594 | | |
Long term debt received | | | | | 2,922,154 | | | | | | — | | |
Repayment of long-term debt | | | | | (2,382,512) | | | | | | (8,281,566) | | |
Principal payments under capital lease | | | | | (918,151) | | | | | | (441,145) | | |
Net cash generated from (used in) financing activities | | | | | 108,270 | | | | | | (6,998,117) | | |
Net (decrease)/ increase in cash and cash equivalents | | | | | (234,942) | | | | | | 335,732 | | |
Cash and cash equivalents, and restricted cash at the beginning of the year | | | | | 4,507,328 | | | | | | 2,959,542 | | |
Reduction due to deconsolidation of a subsidiary | | | | | (72,163) | | | | | | — | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | | | | | (644,890) | | | | | | 1,212,054 | | |
Cash and cash equivalents and restricted cash at the end of the year | | | | | 3,555,333 | | | | | | 4,507,328 | | |
Supplemental cash flow disclosure: | | | | | | | | | | | | | |
Income tax paid (net of refunds) | | | | | 37,633 | | | | | | 301,210 | | |
Interest paid | | | | | 7,923,389 | | | | | | 15,064,788 | | |
Reconciliation of cash and cash equivalents and restricted cash reported in the consolidated balance sheets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | 3,158,891 | | | | | | 2,166,498 | | |
Restricted cash | | | | | 396,442 | | | | | | 2,340,830 | | |
Total cash, cash equivalents, and restricted cash reported in the statements of consolidated cash flows | | | | | 3,555,333 | | | | | | 4,507,328 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
Cash on Hand | | | | | 17,344 | | | | | | 15,956 | | |
Balances with Banks | | | | | 3,141,547 | | | | | | 2,150,542 | | |
Restricted Cash balances | | | | | 396,442 | | | | | | 2,340,830 | | |
Total cash and cash equivalent (Including restricted cash balance) | | | | | 3,555,333 | | | | | | 4,507,328 | | |
| Building | | | 30 – 60 years | |
| Plant and machinery | | | 3 – 15 years | |
| Computer and accessories | | | 3 – 15 years | |
| Leasehold improvements | | | 3 – 15 years | |
| Office equipment, canteen equipment and lab equipment | | | 3 – 15 years | |
| Electronic fittings and furniture | | | 3 – 15 years | |
| Vehicles | | | 3 – 10 years | |
| Software | | | 3 – 10 years | |
| Trademark | | | 10 years | |
| Customer relationship | | | 10 years | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Accounts receivable | | | | | 17,253,021 | | | | | | 17,158,992 | | |
| | | | | 17,253,021 | | | | | | 17,158,992 | | |
Less: Provision for doubtful accounts | | | | | (969,312) | | | | | | (1,333,304) | | |
Accounts receivable, net | | | | | 16,283,709 | | | | | | 15,825,688 | | |
The movement in provision for doubtful accounts is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the year | | | | | (1,333,304) | | | | | | (2,065,588) | | |
Net movement including provision/reversals | | | | | 363,992 | | | | | | 732,284 | | |
Balance as at end of the year | | | | | (969,312) | | | | | | (1,333,304) | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Raw materials and components | | | | | 18,449,002 | | | | | | 22,619,332 | | |
Work in progress and semi-finished goods | | | | | 94,364 | | | | | | 136,533 | | |
Finished goods | | | | | 11,371,577 | | | | | | 22,123,195 | | |
Packaging material | | | | | 1,178,211 | | | | | | 1,361,251 | | |
Consumables | | | | | 90,506 | | | | | | 135,557 | | |
Less: Provision for slow-moving, damaged, and excess inventory | | | | | (8,164,986) | | | | | | (7,082,904) | | |
Inventories, net | | | | | 23,018,674 | | | | | | 39,292,964 | | |
The movement in provision for slow-moving, damaged, and excess inventory is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the year | | | | | (7,082,904) | | | | | | (3,380,435) | | |
Net movement including provision/reversals | | | | | (1,082,082) | | | | | | (3,702,469) | | |
Balance as at end of the year | | | | | (8,164,986) | | | | | | (7,082,904) | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Balance with statutory / Government authorities | | | | | 2,932,719 | | | | | | 3,340,464 | | |
Income tax receivable | | | | | 201,149 | | | | | | 406,296 | | |
Interest accrued | | | | | 298,794 | | | | | | 14,359 | | |
Prepaid expenses | | | | | 426,962 | | | | | | 319,401 | | |
Security deposits | | | | | 33,235 | | | | | | 100,889 | | |
Other advances* | | | | | 1,198,535 | | | | | | 1,352,779 | | |
| | | | | 5,091,394 | | | | | | 5,534,188 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Land (refer note 10(1), 12(2) and 12(3)) | | | | | 9,277,919 | | | | | | 9,305,097 | | |
Building (refer note 10(1)) | | | | | 18,779,178 | | | | | | 18,983,623 | | |
Plant and machinery (refer note 10(1)) | | | | | 21,209,881 | | | | | | 19,907,787 | | |
Computer and accessories | | | | | 6,562,442 | | | | | | 6,550,542 | | |
Leasehold improvements | | | | | 2,451,432 | | | | | | 2,456,350 | | |
Office equipment, canteen equipment and lab equipment | | | | | 779,478 | | | | | | 764,703 | | |
Electronic fittings and furniture | | | | | 986,941 | | | | | | 2,166,666 | | |
Vehicles | | | | | 233,735 | | | | | | 232,309 | | |
Capital work-in-progress | | | | | 137,732 | | | | | | 118,841 | | |
Property, plant and equipment (gross) | | | | | 60,418,738 | | | | | | 60,485,918 | | |
Less: Accumulated depreciation | | | | | (28,669,081) | | | | | | (27,179,856) | | |
Property, plant and equipment, net | | | | | 31,749,657 | | | | | | 33,306,062 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Trademarks | | | | | 6,839 | | | | | | 6,610 | | |
Capitalized software | | | | | 333,399 | | | | | | 320,810 | | |
Customer relationship | | | | | 4,500,000 | | | | | | 4,500,000 | | |
Intangible assets (gross) | | | | | 4,840,238 | | | | | | 4,827,420 | | |
Less: Accumulated amortization | | | | | (4,588,393) | | | | | | (4,325,427) | | |
Intangible assets, net | | | | | 251,845 | | | | | | 501,993 | | |
| 2022 | | | | | 36,433 | | |
| 2023 | | | | | 34,482 | | |
| 2024 | | | | | 33,157 | | |
| 2025 | | | | | 32,382 | | |
| 2026 | | | | | 31,412 | | |
| 2027 | | | | | 31,395 | | |
| 2028 | | | | | 29,612 | | |
| 2029 | | | | | 22,972 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Total initial cost | | | | | — | | | | | | — | | |
Accumulated gain/(loss) | | | | | 1,148,624 | | | | | | (270,722) | | |
Carrying value | | | | | 1,148,624 | | | | | | (270,722) | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Current assets | | | | | 8,938,143 | | | | | | 3,326,994 | | |
Non-current assets | | | | | 3,143,442 | | | | | | 3,116,638 | | |
Current liabilities | | | | | 6,447,796 | | | | | | 3,459,599 | | |
Non-current liabilities | | | | | 3,285,168 | | | | | | 3,285,168 | | |
Net sales or gross revenue | | | | | 30,610,441 | | | | | | 11,270,708 | | |
Gross profit | | | | | 10,805,808 | | | | | | 2,855,540 | | |
Net income | | | | | 2,838,693 | | | | | | 76,838 | | |
Net income attributable to the Group | | | | | 1,419,346 | | | | | | 38,419 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Security deposits | | | | | 723,942 | | | | | | 328,677 | | |
Capital Advances | | | | | 119,045 | | | | | | 52,570 | | |
Other Advances* | | | | | 3,367,435 | | | | | | 3,362,979 | | |
Interest accrued | | | | | 1,346 | | | | | | 1,021 | | |
| | | | | 4,211,768 | | | | | | 3,745,247 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Post-shipment credit | | | | | 8,251,376 | | | | | | 8,613,345 | | |
Pre-shipment credit | | | | | 5,047,857 | | | | | | 5,282,244 | | |
Inter corporate loans | | | | | 5,002,604 | | | | | | 5,932,513 | | |
Loans payable under bank line of credit | | | | | 101,888,857 | | | | | | 100,576,347 | | |
Notes payable due within one year | | | | | 9,367,863 | | | | | | 5,000,000 | | |
| | | | | 129,558,557 | | | | | | 125,404,449 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Accrued payroll and related expenses | | | | | 2,190,193 | | | | | | 2,253,141 | | |
Advance from customers | | | | | 2,335,118 | | | | | | 526,953 | | |
Current maturities of long-term debt | | | | | 3,681,444 | | | | | | 9,292,340 | | |
Current maturities of capital lease obligations | | | | | 713,549 | | | | | | 901,121 | | |
Interest accrued | | | | | 6,808,357 | | | | | | 3,084,106 | | |
Other outstanding expenses | | | | | 7,539,371 | | | | | | 9,636,006 | | |
| | | | | 23,268,032 | | | | | | 25,693,667 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Term loan from bank | | | | | 28,542,039 | | | | | | 22,166,231 | | |
Loans payable to affiliated company | | | | | 14,690,625 | | | | | | 14,690,625 | | |
| | | | | 43,232,664 | | | | | | 36,856,856 | | |
For March 31,: | | | | | | | |
2022 | | | | | 3,681,444 | | |
2023 | | | | | 2,726,305 | | |
2024 | | | | | 2,611,224 | | |
2025 | | | | | 7,670,853 | | |
2026 | | | | | 15,533,657 | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Capital lease obligation (net of current portion) | | | | | 805,891 | | | | | | 1,255,977 | | |
| | | | | 805,891 | | | | | | 1,255,977 | | |
| Minimum lease payments at inception | | | | | 3,132,294 | | |
| Imputed rate of interest | | | | | 5.50% | | |
| Amount of imputed interest | | | | | 258,170 | | |
| Present value of lease obligation at inception | | | | | 2,874,124 | | |
| Minimum lease payments as on 31 March 21: | | | | | | | |
| 2022 | | | | | 875,362 | | |
| 2023 | | | | | 723,546 | | |
| Total minimum lease payments | | | | | 1,598,908 | | |
| Amount of imputed interest | | | | | 79,468 | | |
| Principal balance | | | | | 1,519,440 | | |
| – Current | | | | | 713,549 | | |
| – Non-current | | | | | 805,891 | | |
Year Ending March 31 | | | Minimum lease payments | | | Minimum sublet income | | | Minimum lease payments, net | | |||||||||
2022 | | | | | 1,366,792 | | | | | | 1,074,115 | | | | | | 292,677 | | |
2023 | | | | | 114,141 | | | | | | 89,591 | | | | | | 24,550 | | |
2024 | | | | | — | | | | | | — | | | | | | — | | |
2025 | | | | | — | | | | | | — | | | | | | — | | |
2026 | | | | | — | | | | | | — | | | | | | — | | |
Thereafter | | | | | — | | | | | | — | | | | | | — | | |
Total minimum future lease payments | | | | | 1,480,933 | | | | | | 1,163,706 | | | | | | 317,227 | | |
Year Ending March 31 | | | | | | | |
2022 | | | | | 139,346 | | |
2023 | | | | | 139,346 | | |
2024 | | | | | 42,346 | | |
2025 | | | | | — | | |
2026 | | | | | — | | |
Thereafter | | | | | — | | |
Total minimum future lease payments | | | | | 321,038 | | |
| | | For the years ended March 31, | | |||||||||
Geography | | | 2021 | | | 2020 | | ||||||
India | | | | | 22,437,237 | | | | | | 13,006,321 | | |
United States of America | | | | | 90,614,328 | | | | | | 129,252,673 | | |
Australia | | | | | 4,936,949 | | | | | | 4,654,243 | | |
United Kingdom | | | | | 6,647,265 | | | | | | 3,383,013 | | |
| | | For the years ended March 31, | | |||||||||
Geography | | | 2021 | | | 2020 | | ||||||
Other countries | | | | | 766,454 | | | | | | 4,272,063 | | |
| | | | | 125,402,233 | | | | | | 154,568,313 | | |
|
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
Net employee benefit expenses recognized in the employee cost | | | | | | | | | | | | | |
a) Changes in defined benefit obligations | | | | | | | | | | | | | |
Present value of obligation as at the beginning of the year | | | | | 762,291 | | | | | | 751,168 | | |
Interest cost | | | | | 59,107 | | | | | | 62,473 | | |
Current service cost | | | | | 91,255 | | | | | | 99,310 | | |
Remeasurements – net actuarial (gains)/ losses | | | | | (100,710) | | | | | | (30,834) | | |
Benefits paid | | | | | (45,083) | | | | | | (51,987) | | |
Foreign currency translation reserve | | | | | 26,457 | | | | | | (67,839) | | |
Present value of obligation as at the end of the year | | | | | 793,317 | | | | | | 762,291 | | |
b) Changes in fair value of the plan assets of the gratuity plan | | | | | | | | | | | | | |
Plan assets at the beginning of the year | | | | | 297,670 | | | | | | 355,775 | | |
| | | March 31, 2021 | | | March 31, 2020 | | ||||||
Contribution by employer | | | | | — | | | | | | 5,023 | | |
Benefits paid | | | | | (45,083) | | | | | | (51,987) | | |
Return on plan assets (incl. interest income) | | | | | 14,750 | | | | | | 18,149 | | |
Foreign currency translation reserve | | | | | 9,774 | | | | | | (29,290) | | |
Fair value of the plan assets at the end of the year | | | | | 277,111 | | | | | | 297,670 | | |
c) Expenses recognized in the consolidated statement of comprehensive loss | | | | | | | | | | | | | |
Current service cost | | | | | 91,255 | | | | | | 99,310 | | |
Interest cost and benefit obligation | | | | | 59,107 | | | | | | 62,473 | | |
Expected return on plan assets | | | | | (19,230) | | | | | | (23,662) | | |
Net actuarial (gain)loss recognized in the year | | | | | (96,230) | | | | | | (25,320) | | |
Changes in foreign currency translation reserves | | | | | 606 | | | | | | (4,839) | | |
Net benefit expense | | | | | 35,508 | | | | | | 107,962 | | |
d) Net amount recognized in the balance sheet | | | | | | | | | | | | | |
Present value of defined benefit obligation | | | | | (793,317) | | | | | | (762,291) | | |
Fair value of plan assets | | | | | 277,111 | | | | | | 297,670 | | |
Plan (liability) | | | | | (516,206) | | | | | | (464,621) | | |
|
Gratuity | | | March 31, 2021 | | | March 31, 2020 | | ||||||
Defined benefit obligation | | | | | (793,317) | | | | | | (762,291) | | |
Plan assets | | | | | 277,111 | | | | | | 297,670 | | |
Gratuity (liability) | | | | | (516,206) | | | | | | (464,621) | | |
| | | For the year ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Expected Group contributions during next financial year | | | | | 67,222 | | | | | | 70,447 | | |
Expected benefit payments during | | | | | | | | | | | | | |
Year 1 | | | | | 124,170 | | | | | | 127,978 | | |
Year 2 | | | | | 120,004 | | | | | | 134,487 | | |
Year 3 | | | | | 133,079 | | | | | | 134,541 | | |
Year 4 | | | | | 131,210 | | | | | | 151,400 | | |
Year 5 | | | | | 134,518 | | | | | | 153,756 | | |
Year 6 to Year 10 | | | | | 615,144 | | | | | | 760,525 | | |
| | | For the year ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Discount rate (p.a.) | | | | | 7.35% | | | | | | 6.30% | | |
Rate of compensation increase (p.a.) | | | 13.00% until year 1 inclusive, then 8.00% | | | 13.00% until year 2 inclusive, then 8.00% | |
| | | For the year ended March 31, | | |||||||||
| | | 2021 | | | 2022 | | ||||||
Discount rate (p.a.) | | | | | 7.35% | | | | | | 6.30% | | |
Rate of compensation increase (p.a.) | | | 13.00% until year 2 inclusive, then 8.00% | | | 13.00% until year 1 inclusive, then 8.00% | | ||||||
Expected rate of return on plan assets (p.a.) | | | | | 7.00% | | | | | | 7.00% | | |
| As at March 31, 2020 | | | | $ | 231,244 | | |
| As at March 31, 2021 | | | | $ | 210,899 | | |
| | | For the years ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
United States of America | | | | | 7,146,760 | | | | | | 16,040,721 | | |
India | | | | | 3,591,922 | | | | | | 16,500,770 | | |
Others | | | | | 7,441 | | | | | | 6,040 | | |
Total | | | | | 10,746,123 | | | | | | 32,547,531 | | |
| | | For the years ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Current tax provision: | | | | | | | | | | | | | |
United States – Federal | | | | | — | | | | | | — | | |
United States – State and Local | | | | | — | | | | | | — | | |
| | | For the years ended March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
India | | | | | 168,642 | | | | | | 121,880 | | |
Total current tax provision | | | | | 168,642 | | | | | | 121,880 | | |
Deferred tax provision: | | | | | | | | | | | | | |
United States – Federal | | | | | 52,669 | | | | | | 92,209 | | |
United States – State and Local | | | | | — | | | | | | — | | |
India | | | | | (17,177) | | | | | | (25,610) | | |
Total deferred tax provision | | | | | 35,492 | | | | | | 66,599 | | |
Tax pertaining to earlier years: | | | | | | | | | | | | | |
India | | | | | 160,712 | | | | | | 96,964 | | |
Provision for income taxes | | | | | 364,846 | | | | | | 285,443 | | |
|
| Computed expected tax | | | | | 2,467,001 | | | | | | 7,046,547 | | |
| State income taxes (net of federal benefit) | | | | | 124,055 | | | | | | 360,550 | | |
| Non-deductible expenses, net | | | | | (223,538) | | | | | | 1,784,561 | | |
| Valuation allowance | | | | | (2,469,310) | | | | | | (9,199,204) | | |
| Adjustments for change in rates due to different tax jurisdiction | | | | | (160,712) | | | | | | (96,964) | | |
| Others | | | | | (102,342) | | | | | | (180,933) | | |
| Provision for income tax | | | | | 364,846 | | | | | | 285,443 | | |
| Effective tax rate | | | | | -3% | | | | | | -1% | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Amortization and depreciation | | | | | 2,606,006 | | | | | | 2,326,405 | | |
Accrued liabilities and other reserves | | | | | 2,672,606 | | | | | | 2,985,013 | | |
Interest limitation u/s 163(j) | | | | | 5,569,912 | | | | | | 4,055,358 | | |
Tax credit carry forward | | | | | 178,655 | | | | | | 270,376 | | |
Net operating loss carryover | | | | | 32,866,428 | | | | | | 31,503,618 | | |
Total deferred tax asset before valuation allowance | | | | | 43,893,608 | | | | | | 41,140,770 | | |
Valuation allowance | | | | | (42,482,286) | | | | | | (40,012,977) | | |
Total deferred tax asset, net of valuation allowance | | | | | 1,411,322 | | | | | | 1,127,793 | | |
Deferred tax liability | | | | | | | | | | | | | |
Amortization and depreciation | | | | | (441,270) | | | | | | (439,781) | | |
Intangibles/goodwill | | | | | (770,398) | | | | | | (695,051) | | |
Passthrough income | | | | | (318,880) | | | | | | (20,817) | | |
| | | As of March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
Deferred tax liability | | | | | (1,530,548) | | | | | | (1,155,649) | | |
Net deferred tax liability | | | | | (119,226) | | | | | | (27,856) | | |
|
| Ultimate Holding Company: | |
| M/s. TGP Trading FZCO, U.A.E. | |
| Direct Subsidiaries: | |
| Primacy Industries Limited | |
| Primacy Global Enterprises Private Limited | |
| GP Global USA LLC (lost control w.e.f April 2020) | |
| Step-down Subsidiary: | |
| MVP International Inc. | |
| World Care Products LLC (lost control w.e.f April 2020) | |
| 2700 East Avenue LLC (lost control w.e.f April 2020) | |
| Associate/ significant influence: | |
| Goose Creek Candles LLC | |
| Minority owner: | |
| Manipal Media Network Limited | |
| Key Managerial Personnel: | |
| Ms. Sandhya Satish Pai | |
| Mr. Tonse Pai | |
| Mr. T Gautham Pai | |
| Mr. Satish Pai | |
| Ms. Vanita Pai | |
| | | For the years ended March 31, | | |||||||||
Geography | | | 2021 | | | 2020 | | ||||||
India | | | | | 22,437,237 | | | | | | 13,006,321 | | |
United States of America | | | | | 90,614,328 | | | | | | 129,252,673 | | |
Australia | | | | | 4,936,949 | | | | | | 4,654,243 | | |
United Kingdom | | | | | 6,647,265 | | | | | | 3,383,013 | | |
Other countries | | | | | 766,454 | | | | | | 4,272,063 | | |
| | | | | 125,402,233 | | | | | | 154,568,313 | | |
| | | As at March 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
United States | | | | | 25,891,553 | | | | | | 27,067,423 | | |
India | | | | | 5,858,104 | | | | | | 6,238,639 | | |
| | | | | 31,749,657 | | | | | | 33,306,062 | | |
| FINANCIAL STATEMENTS (UNAUDITED) | | | | | | | |
| | | | | 203 | | | |
| | | | | 204 | | | |
| | | | | 205 | | | |
| | | | | 206 | | | |
| | | | | 207 | | |
| | | Note | | | As at June 30, 2022 | | | As at March 31, 2022 | | |||||||||
ASSETS | | | | | | | | | | | | | | | | | | | |
CURRENT ASSETS | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | | | | | | | 1,300,031 | | | | | | 3,093,910 | | |
Restricted cash balance | | | | | | | | | | | 25,624,196 | | | | | | 25,572,218 | | |
Accounts receivable, net of allowance for doubtful accounts of $1,166,694 and $1,205,916, respectively | | | | | 3 | | | | | | 12,276,554 | | | | | | 12,620,975 | | |
Inventories | | | | | 4 | | | | | | 38,473,678 | | | | | | 36,099,314 | | |
Prepaid expenses and other current assets | | | | | 5 | | | | | | 6,926,781 | | | | | | 6,675,723 | | |
Total current assets | | | | | | | | | | | 84,601,240 | | | | | | 84,062,140 | | |
Investments | | | | | | | | | | | 23,526 | | | | | | 24,895 | | |
Property, plant and equipment, net | | | | | 6 | | | | | | 27,162,875 | | | | | | 28,329,717 | | |
Operating lease right-of-use assets | | | | | 13 | | | | | | 189,869 | | | | | | — | | |
Finance lease right-of-use assets | | | | | 13 | | | | | | 479,443 | | | | | | — | | |
Intangible assets, net | | | | | 7 | | | | | | 191,885 | | | | | | 208,551 | | |
Equity accounted investment | | | | | 8 | | | | | | 2,118,529 | | | | | | 2,142,242 | | |
Other non-current assets | | | | | 9 | | | | | | 3,621,067 | | | | | | 3,635,810 | | |
Deferred tax assets | | | | | 18 | | | | | | 376,062 | | | | | | 257,377 | | |
Total assets | | | | | | | | | | | 118,764,496 | | | | | | 118,660,732 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | | | | | | | |
Short-term debt | | | | | 10 | | | | | | 53,056,417 | | | | | | 52,690,489 | | |
Accounts payables | | | | | | | | | | | 34,866,564 | | | | | | 35,203,595 | | |
Other current liabilities | | | | | 11 | | | | | | 39,669,396 | | | | | | 37,790,075 | | |
Total current liabilities | | | | | | | | | | | 127,592,377 | | | | | | 125,684,159 | | |
Long-term debt | | | | | 12 | | | | | | 140,403,608 | | | | | | 140,489,431 | | |
Employee compensation and benefits | | | | | 17 | | | | | | 537,729 | | | | | | 548,544 | | |
Other non-current liabilities | | | | | 13 | | | | | | 4,686 | | | | | | — | | |
Deferred tax liabilities | | | | | 18 | | | | | | 329,104 | | | | | | 214,406 | | |
Total liabilities | | | | | | | | | | | 268,867,504 | | | | | | 266,936,540 | | |
COMMITMENTS & CONTINGENCIES (Refer Note 14) | | | | | | | | | | | | | | | | | | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | | | | | | | |
Common stock, $0.2723 par value per share, 6,880,000 shares authorized, issued and outstanding | | | | | 15 | | | | | | 1,873,433 | | | | | | 1,873,433 | | |
Accumulated deficit | | | | | | | | | | | (150,512,958) | | | | | | (147,624,303) | | |
Foreign currency translation reserve | | | | | | | | | | | 4,954,260 | | | | | | 3,881,396 | | |
Total stockholders’ deficit | | | | | | | | | | | (143,685,265) | | | | | | (141,869,474) | | |
Non-controlling interest | | | | | | | | | | | (6,417,743) | | | | | | (6,406,334) | | |
Total deficit | | | | | | | | | | | (150,103,008) | | | | | | (148,275,808) | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | 118,764,496 | | | | | | 118,660,732 | | |
| | | | | | For the period ended June 30, | | |||||||||
| | | Note | | | 2022 | | | 2021 | | ||||||
Revenues, net | | | 16 | | | | | 28,614,437 | | | | | | 22,353,827 | | |
Cost of goods sold | | | | | | | | 21,924,778 | | | | | | 16,181,062 | | |
Gross profit | | | | | | | | 6,689,659 | | | | | | 6,172,765 | | |
OPERATING EXPENSES | | | | | | | | | | | | | | | | |
Selling, general & administrative expenses | | | | | | | | 5,900,231 | | | | | | 7,669,230 | | |
Depreciation & amortization | | | 6 & 7 | | | | | 639,474 | | | | | | 686,648 | | |
Total operating expenses | | | | | | | | 6,539,705 | | | | | | 8,355,878 | | |
Operating profit (loss) before income taxes and share of profit (loss) on equity accounted investment | | | | | | | | 149,954 | | | | | | (2,183,113) | | |
OTHER INCOME (EXPENSE) | | | | | | | | | | | | | | | | |
Interest income | | | | | | | | 60,962 | | | | | | 61,198 | | |
Interest expense | | | | | | | | (2,845,277) | | | | | | (878,034) | | |
Other income, net | | | | | | | | 247,036 | | | | | | 4,592,123 | | |
Total other (expense) income | | | | | | | | (2,537,279) | | | | | | 3,775,287 | | |
(Loss) profit before income taxes and share of profit (loss) on equity accounted investment | | | | | | | | (2,387,325) | | | | | | 1,592,175 | | |
(Provision) benefit for income taxes | | | 18 | | | | | (576,889) | | | | | | 268,288 | | |
Net (loss) profit before share of profit (loss) on equity accounted investment | | | | | | | | (2,964,214) | | | | | | 1,860,462 | | |
Share of profit (loss) from equity accounted investment | | | | | | | | (23,714) | | | | | | 365,936 | | |
Net (loss) profit after share of profit (loss) on equity accounted investment | | | | | | | | (2,987,928) | | | | | | 2,226,398 | | |
Net (loss) profit attributable to non-controlling interest | | | | | | | | (99,273) | | | | | | 231,277 | | |
Net (loss) profit attributable to owners | | | | | | | | (2,888,655) | | | | | | 1,995,121 | | |
Other comprehensive income | | | | | | | | | | | | | | | | |
Cumulative translation adjustments | | | | | | | | 1,160,728 | | | | | | 140,257 | | |
Total other comprehensive income | | | | | | | | 1,160,728 | | | | | | 140,257 | | |
Other comprehensive income attributable to non-controlling interest, net of tax | | | | | | | | 87,864 | | | | | | 4,062 | | |
Other comprehensive income attributable to owners | | | | | | | | 1,072,864 | | | | | | 136,195 | | |
Total comprehensive (loss) income | | | | | | | | (1,827,200) | | | | | | 2,366,655 | | |
Weighted average common shares outstanding | | | | | | | | 6,880,000 | | | | | | 6,880,000 | | |
Basic (loss) profit per common share | | | | | | | | (0.42) | | | | | | 0.29 | | |
Diluted (loss) profit per common share | | | | | | | | (0.42) | | | | | | 0.29 | | |
| | | Common stock | | | Accumulated deficit | | | Accumulated other comprehensive income | | | Non-controlling interest | | | Total stockholders’ deficit | | |||||||||||||||||||||
| | | Nos. of shares | | | Par value | | ||||||||||||||||||||||||||||||
Balance as at April 01, 2021 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (142,469,033) | | | | | | 3,464,361 | | | | | | (6,236,117) | | | | | | (143,367,356) | | |
Net profit for the period | | | | | — | | | | | | — | | | | | | 1,995,121 | | | | | | — | | | | | | 231,277 | | | | | | 2,226,398 | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | 136,195 | | | | | | 4,062 | | | | | | 140,257 | | |
Balance as at June 30, 2021 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (140,473,912) | | | | | | 3,600,556 | | | | | | (6,000,778) | | | | | | (141,000,701) | | |
Balance as at April 01, 2022 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (147,624,303) | | | | | | 3,881,396 | | | | | | (6,406,334) | | | | | | (148,275,808) | | |
Net loss for the period | | | | | — | | | | | | — | | | | | | (2,888,655) | | | | | | — | | | | | | (99,273) | | | | | | (2,987,928) | | |
Other comprehensive income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,072,864 | | | | | | 87,864 | | | | | | 1,160,728 | | |
Balance as at June 30, 2022 | | | | | 6,880,000 | | | | | | 1,873,433 | | | | | | (150,512,958) | | | | | | 4,954,260 | | | | | | (6,417,743) | | | | | | (150,103,008) | | |
| | | For the period ended June 30, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
(A) CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | | | | | | | | |
Net (loss) profit for the period | | | | | (2,987,928) | | | | | | 2,226,398 | | |
Adjustments: | | | | | | | | | | | | | |
Depreciation and amortization | | | | | 639,474 | | | | | | 686,648 | | |
Tax provision (benefit) (net) | | | | | 576,889 | | | | | | (268,288) | | |
Provision for gratuity | | | | | 11,931 | | | | | | 12,499 | | |
Provision for compensated absence | | | | | 17,392 | | | | | | 21,684 | | |
Provision for Corporate Social Responsibility (“CSR”) expense | | | | | 4,554 | | | | | | 12,971 | | |
Loss on sale of property, plant, and equipment | | | | | 434 | | | | | | — | | |
Share of profit (loss) on equity accounted investment | | | | | 23,714 | | | | | | (365,936) | | |
Gain on forgiveness of loan | | | | | — | | | | | | (4,367,863) | | |
Effect of foreign exchange fluctuation | | | | | (2,676,760) | | | | | | (700,982) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable | | | | | (2,004,703) | | | | | | 5,809,749 | | |
Inventories | | | | | (2,859,574) | | | | | | (5,246,736) | | |
Other current assets | | | | | (790,852) | | | | | | (935,962) | | |
Accounts payables and other liabilities | | | | | 5,266,128 | | | | | | 2,060,307 | | |
Cash used in operating activities | | | | | (4,779,301) | | | | | | (1,055,511) | | |
(B) CASH FLOW FROM INVESTING ACTIVITIES | | | | | | | | | | | | | |
Disposal (purchase) of property, plant, and equipment / intangible assets (net) | | | | | (335,371) | | | | | | (240,459) | | |
Net cash used in investing activities | | | | | (335,371) | | | | | | (240,459) | | |
(C) CASH FLOW FROM FINANCING ACTIVITIES | | | | | | | | | | | | | |
Short term debt, net | | | | | 565,480 | | | | | | 938,494 | | |
Long term debt, net (including related parties) | | | | | 121,428 | | | | | | 887,028 | | |
Issue of convertible debentures | | | | | 3,889,790 | | | | | | — | | |
Principal payments under capital lease | | | | | (171,267) | | | | | | (162,104) | | |
Net cash generated from financing activities | | | | | 4,405,431 | | | | | | 1,663,418 | | |
Net (decrease) increase in cash and cash equivalents | | | | | (709,241) | | | | | | 367,448 | | |
Cash, cash equivalents, and restricted cash at the beginning of the period | | | | | 28,666,128 | | | | | | 3,555,333 | | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | | | | | (1,032,660) | | | | | | 89,286 | | |
Cash and cash equivalents and restricted cash at the end of the period | | | | | 26,924,227 | | | | | | 4,012,067 | | |
Supplemental cash flow disclosure: | | | | | | | | | | | | | |
Interest paid | | | | | 1,312,486 | | | | | | 267,019 | | |
Reconciliation of cash and cash equivalents and restricted cash reported in the consolidated balance sheets | | | | | | | | | | | | | |
Cash and cash equivalents | | | | | 1,300,031 | | | | | | 2,899,365 | | |
Restricted cash | | | | | 25,624,196 | | | | | | 1,112,702 | | |
Total cash, cash equivalents, and restricted cash reported in the statements of cash flows | | | | | 26,924,227 | | | | | | 4,012,067 | | |
Non-cash investing and financing activities: | | | | ||||||||||
Restructuring of debt | | | | | — | | | | | | 2,391,015 | | |
Acquisition of right-of-use assets | | | | | 302,737 | | | | | | | | |
Lease liabilities | | | | | 302,737 | | | | | | | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Cash on hand | | | | | 15,591 | | | | | | 18,151 | | |
Balances with banks | | | | | 1,248,440 | | | | | | 3,075,759 | | |
Restricted cash balances | | | | | 25,624,196 | | | | | | 25,572,218 | | |
Total cash and cash equivalents (including restricted cash balance) | | | | | 26,924,227 | | | | | | 28,666,128 | | |
| Building | | | 30 – 60 years | |
| Plant and machinery | | | 3 – 20 years | |
| Office equipment, canteen equipment and lab equipment | | | 3 – 15 years | |
| Electric fittings and furniture | | | 3 – 15 years | |
| Computer and accessories | | | 3 – 10 years | |
| Vehicles | | | 3 – 10 years | |
| Leasehold improvements | | | 3 – 10 years | |
| Software | | | 3 – 10 years | |
| Trademark | | | 10 years | |
| Customer relationship | | | 10 years | |
Assets and liabilities measured at fair value on a recurring basis | | | Fair Value | | | Fair Value hierarchy | |
Compulsorily convertible debentures | | | | | | | |
– Fair value as on June 30, 2022 | | | 43,167,386 | | | Level 3 | |
– Fair value as on March 31, 2022 | | | 41,040,922 | | | Level 3 | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Accounts receivable | | | | | 13,443,248 | | | | | | 13,826,891 | | |
Less: Allowance for doubtful accounts | | | | | (1,166,694) | | | | | | (1,205,916) | | |
Accounts receivable, net | | | | | 12,276,554 | | | | | | 12,620,975 | | |
The movement in allowance for doubtful accounts is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the period/year | | | | | (1,205,916) | | | | | | (969,312) | | |
Net movement including (allowance)/reversals | | | | | 39,222 | | | | | | (236,604) | | |
Balance as at end of the period/year | | | | | (1,166,694) | | | | | | (1,205,916) | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Raw materials and components | | | | | 21,750,423 | | | | | | 20,792,890 | | |
Work in progress and semi-finished goods | | | | | 97,064 | | | | | | 81,031 | | |
Finished goods | | | | | 20,858,614 | | | | | | 19,859,027 | | |
Packing material | | | | | 872,818 | | | | | | 726,175 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Consumables | | | | | 113,915 | | | | | | 99,765 | | |
Less: Provision for slow-moving, damaged, and excess inventory | | | | | (5,219,156) | | | | | | (5,459,574) | | |
Inventories, net | | | | | 38,473,678 | | | | | | 36,099,314 | | |
The movement in provision for slow-moving, damaged, and excess inventory is as follows: | | | | | | | | | | | | | |
Balance as at beginning of the period/year | | | | | (5,459,574) | | | | | | (8,164,986) | | |
Net movement including (provision) reversals | | | | | 240,418 | | | | | | 2,705,412 | | |
Balance as at end of the period/year | | | | | (5,219,156) | | | | | | (5,459,574) | | |
|
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Balance with statutory / government authorities | | | | | 3,834,519 | | | | | | 3,503,213 | | |
Income tax receivable | | | | | 164,434 | | | | | | 870,658 | | |
Interest accrued | | | | | 1,973 | | | | | | 5,666 | | |
Prepaid expenses | | | | | 876,732 | | | | | | 849,274 | | |
Security deposits | | | | | 18,979 | | | | | | 19,791 | | |
Other advances | | | | | 2,030,144 | | | | | | 1,427,121 | | |
| | | | | 6,926,781 | | | | | | 6,675,723 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Land [refer note 12(1), 12(2) and 12(5)] | | | | | 9,229,143 | | | | | | 9,256,243 | | |
Building [refer note 12(3), 12(4), 12(5) and 12(7)] | | | | | 17,545,431 | | | | | | 17,542,540 | | |
Plant and machinery [refer note 12(3), 12(4) and 12(5)] | | | | | 18,872,970 | | | | | | 21,069,345 | | |
Computer and accessories | | | | | 6,518,342 | | | | | | 6,522,666 | | |
Leasehold improvements | | | | | 2,455,357 | | | | | | 2,455,639 | | |
Office equipment, canteen equipment and lab equipment | | | | | 735,986 | | | | | | 739,683 | | |
Electric fittings and furniture | | | | | 890,539 | | | | | | 921,559 | | |
Vehicles | | | | | 241,494 | | | | | | 243,392 | | |
Capital work-in-progress | | | | | 24,956 | | | | | | 136,254 | | |
Property, plant and equipment (gross) | | | | | 56,514,218 | | | | | | 58,887,321 | | |
Less: Accumulated depreciation | | | | | (29,351,340) | | | | | | (30,557,604) | | |
Property, plant and equipment (net) | | | | | 27,162,878 | | | | | | 28,329,717 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Capitalized software | | | | | 315,812 | | | | | | 329,321 | | |
Less: Accumulated amortization | | | | | (123,927) | | | | | | (120,770) | | |
Intangible assets, net | | | | | 191,885 | | | | | | 208,551 | | |
| 2023 | | | | | 31,694 | | |
| 2024 | | | | | 30,606 | | |
| 2025 | | | | | 29,611 | | |
| 2026 | | | | | 28,215 | | |
| 2027 | | | | | 27,971 | | |
| 2028 | | | | | 26,411 | | |
| 2029 | | | | | 17,376 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Total initial cost | | | | | — | | | | | | — | | |
Accumulated share of profits | | | | | 2,834,486 | | | | | | 2,858,200 | | |
Distribution received | | | | | (715,958) | | | | | | (715,958) | | |
Carrying value | | | | | 2,118,529 | | | | | | 2,142,242 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Current assets | | | | | 13,799,687 | | | | | | 15,542,649 | | |
Non-current assets | | | | | 3,100,100 | | | | | | 3,107,305 | | |
Current liabilities | | | | | 7,748,205 | | | | | | 9,328,172 | | |
Non-current liabilities | | | | | 5,037,533 | | | | | | 5,037,533 | | |
| | | Period ended June 30, 2022 | | | Period ended June 30, 2021 | | ||||||
Net sales | | | | | 10,344,256 | | | | | | 10,340,504 | | |
Gross profit | | | | | 4,141,943 | | | | | | 4,479,382 | | |
Net (loss) income | | | | | (47,427) | | | | | | 731,871 | | |
Net (loss) income attributable to the Group | | | | | (23,714) | | | | | | 365,936 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Security deposits | | | | | 385,618 | | | | | | 400,308 | | |
Other advances* | | | | | 3,234,199 | | | | | | 3,234,199 | | |
Interest accrued | | | | | 1,250 | | | | | | 1,303 | | |
| | | | | 3,621,067 | | | | | | 3,635,810 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Inter corporate loans | | | | | 7,626,463 | | | | | | 7,260,600 | | |
Working capital loan (refer note 12(8)) | | | | | 41,279,954 | | | | | | 41,279,889 | | |
Notes payable due within one year | | | | | 4,150,000 | | | | | | 4,150,000 | | |
| | | | | 53,056,417 | | | | | | 52,690,489 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Accrued payroll and related expenses | | | | | 1,734,151 | | | | | | 1,412,434 | | |
Advance from customers | | | | | 580,853 | | | | | | 558,740 | | |
Current maturities of long-term debt | | | | | 21,675,865 | | | | | | 19,680,921 | | |
Current maturities of capital lease obligations | | | | | 536,184 | | | | | | 707,452 | | |
Current maturities of operating lease liabilities | | | | | 185,182 | | | | | | — | | |
Interest accrued | | | | | 7,449,445 | | | | | | 6,524,961 | | |
Other outstanding expenses* | | | | | 7,507,716 | | | | | | 8,905,567 | | |
| | | | | 39,669,396 | | | | | | 37,790,075 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Term loan from bank | | | | | 44,225,819 | | | | | | 47,543,218 | | |
Loans payable to affiliates | | | | | 16,256,975 | | | | | | 15,056,975 | | |
Optionally convertible debentures | | | | | | | | | | | | | |
– measured at amortized cost | | | | | 3,921,768 | | | | | | 4,110,714 | | |
Compulsorily convertible debentures | | | | | | | | | | | | | |
– measured at fair value on recurring basis | | | | | 43,167,386 | | | | | | 32,831,660 | | |
– measured at amortized cost | | | | | 32,831,660 | | | | | | 32,737,602 | | |
| | | | | 140,403,608 | | | | | | 140,489,431 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Term loan | | | | $ | 3,694,382 | | | | | $ | 3,905,602 | | |
FITL 1 | | | | $ | 252,100 | | | | | $ | 350,889 | | |
FITL 2 | | | | $ | 303,769 | | | | | $ | 319,973 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Term loan | | | | $ | 1,737,963 | | | | | $ | 1,837,329 | | |
FITL 1 | | | | $ | 109,985 | | | | | $ | 154,191 | | |
FITL 2 | | | | $ | 159,250 | | | | | $ | 167,819 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Term loan | | | | $ | 701,038 | | | | | $ | 992,101 | | |
FITL 1 | | | | $ | 25,877 | | | | | $ | 36,666 | | |
FITL 2 | | | | $ | 59,388 | | | | | $ | 63,721 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Term loan | | | | $ | 1,288,082 | | | | | $ | 1,348,436 | | |
FITL 1 | | | | $ | 41,701 | | | | | $ | 55,647 | | |
FITL 2 | | | | $ | 27,480 | | | | | $ | 27,803 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Working capital term loan | | | | $ | 3,503,873 | | | | | $ | 3,712,091 | | |
Funded interest term loan | | | | $ | 156,117 | | | | | $ | 162,796 | | |
Compulsorily convertible debentures (at amortized cost) | | | | $ | 1,353,822 | | | | | $ | 1,411,734 | | |
Optionally convertible debentures (at amortized cost) | | | | $ | 4,064,008 | | | | | $ | 4,237,849 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Working capital loan (presented as short-term debt in note 10) | | | | $ | 41,279,954 | | | | | | 41,279,889 | | |
Term loan from bank | | | | $ | 31,197,190 | | | | | | 31,475,862 | | |
CCD (at amortized cost)* | | | | $ | 43,254,749 | | | | | | 43,131,735 | | |
| 2023 | | | | $ | 21,675,865 | | |
| 2024 | | | | $ | 19,268,024 | | |
| 2025 | | | | $ | 27,433,130 | | |
| 2026 | | | | $ | 62,771,747 | | |
| 2027 and onwards | | | | $ | 31,023,161 | | |
Lease liabilities | | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Operating lease obligation | | | | | | | | | | | | | |
Current | | | | | 185,182 | | | | | | — | | |
Non-current | | | | | 4,686 | | | | | | — | | |
Finance lease obligation | | | | | | | | | | | | | |
Current | | | | | 536,184 | | | | | | 707,452 | | |
Right of use assets | | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Operating lease right of use assets, net | | | | | 189,869 | | | | | | — | | |
Finance lease right of use assets, net* | | | | | 479,443 | | | | | | — | | |
| Operating lease: | | | | | | | |
| Operating lease cost | | | | | 503,524 | | |
| Variable lease cost | | | | | 4,149 | | |
| Short term/cancellable lease cost | | | | | 162,782 | | |
| Finance lease: | | | | | | | |
| Depreciation cost | | | | | 165,060 | | |
| Finance cost | | | | | 8,959 | | |
| Total lease cost | | | | | 844,474 | | |
| Weighted Average Remaining Lease Term | | | | |
| Operating Leases | | | 11months | |
| Finance Leases | | | 7 months | |
| Weighted Average Discount Rate | | | | |
| Operating Leases | | | 4.72% – 7.09% | |
| Finance Leases | | | 5.51% | |
As on June 30, | | | Operating | | | Financing | | ||||||
2023 | | | | | 197,544 | | | | | | 547,193 | | |
2024 | | | | | 4,730 | | | | | | — | | |
2025 onwards | | | | | — | | | | | | — | | |
Total Commitments | | | | | 202,274 | | | | | | 547,193 | | |
Less: Imputed interest | | | | | (12,406) | | | | | | (11,009) | | |
Lease liability as on 30 June, 2022 | | | | | 189,868 | | | | | | 536,184 | | |
| | | Operating | | | Financing | | ||||||
Lease commitments as per March 31, 2022 | | | | | 181,672 | | | | | | 24,550 | | |
Non-lease component | | | | | (1,846) | | | | | | — | | |
Short commitment | | | | | 137,435 | | | | | | (24,550) | | |
Undiscounted cashflows as on April 01, 2022 | | | | | 317,261 | | | | | | — | | |
Less – Imputed interest | | | | | (14,524) | | | | | | — | | |
Discounted lease liability as on April 01, 2022 | | | | | 302,737 | | | | | | — | | |
| | | For the period ended June 30, | | |||||||||
Geography | | | 2022 | | | 2021 | | ||||||
India | | | | | 5,017,954 | | | | | | 5,846,352 | | |
United States of America | | | | | 18,676,043 | | | | | | 12,029,535 | | |
Australia | | | | | 1,337,139 | | | | | | 1,172,987 | | |
United Kingdom | | | | | 1,821,754 | | | | | | 2,250,915 | | |
Other countries | | | | | 1,761,547 | | | | | | 1,054,038 | | |
| | | | | 28,614,437 | | | | | | 22,353,827 | | |
Gratuity | | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Defined benefit obligation | | | | | (778,666) | | | | | | (799,786) | | |
Plan assets | | | | | 240,936 | | | | | | 251,242 | | |
Gratuity liability | | | | | (537,729) | | | | | | (548,544) | | |
| As at 30th June 2022 | | | | $ | 255,142 | | |
| As at 31st March 2022 | | | | $ | 248,292 | | |
| | | June 30, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
United States | | | | | 2,397,392 | | | | | | 4,962,629 | | |
India | | | | | (4,808,432) | | | | | | (3,004,445) | | |
Others | | | | | — | | | | | | (71) | | |
Total | | | | | (2,411,040) | | | | | | 1,958,113 | | |
| | | June 30, | | |||||||||
| | | 2022 | | | 2021 | | ||||||
Current tax provision | | | | | | | | | | | | | |
United States – Federal | | | | | — | | | | | | — | | |
United States – State and local | | | | | — | | | | | | — | | |
India | | | | | (594,138) | | | | | | (15,736) | | |
Total current tax provision | | | | | (594,138) | | | | | | (15,736) | | |
Deferred tax provision | | | | | | | | | | | | | |
United States – Federal | | | | | (114,700) | | | | | | (104,704) | | |
United States – State and local | | | | | — | | | | | | — | | |
India | | | | | 131,949 | | | | | | 389,074 | | |
Total deferred tax benefit (provision) | | | | | 17,249 | | | | | | 284,370 | | |
Tax pertaining to earlier years | | | | | | | | | | | | | |
India | | | | | — | | | | | | (346) | | |
Total tax pertaining to earlier years | | | | | — | | | | | | (346) | | |
(Provision) benefit for income taxes | | | | | (576,889) | | | | | | 268,288 | | |
| Loss before tax (including share of profit from equity accounted investment) | | | | | (2,411,040) | | |
| Provision for income tax and deferred tax | | | | | (576,889) | | |
| Effective tax rate | | | | | 23.93% | | |
| | | June 30, 2022 | | | March 31, 2022 | | ||||||||||||||||||
| | | US jurisdiction | | | India jurisdiction | | | US jurisdiction | | | India jurisdiction | | ||||||||||||
Property, plant and Equipment − amortization and depreciation | | | | | 2,780,295 | | | | | | 30,072 | | | | | | 2,732,979 | | | | | | 31,359 | | |
Accrued liabilities and other reserves | | | | | 3,270,118 | | | | | | 715,500 | | | | | | 3,284,282 | | | | | | 650,759 | | |
Interest limitation | | | | | 7,359,709 | | | | | | — | | | | | | 6,888,114 | | | | | | — | | |
Passthrough income | | | | | 301,576 | | | | | | | | | | | | — | | | | | | — | | |
Net operating loss carryover | | | | | 31,917,509 | | | | | | 1,006,926 | | | | | | 31,591,565 | | | | | | 1,311,411 | | |
Total deferred tax asset before valuation allowance | | | | | 45,629,207 | | | | | | 2,003,188 | | | | | | 44,496,940 | | | | | | 1,993,530 | | |
Valuation allowance | | | | | (45,063,958) | | | | | | (1,037,330) | | | | | | (43,811,934) | | | | | | (1,343,117) | | |
Total deferred tax asset, net of valuation allowance | | | | | 565,249 | | | | | | 715,168 | | | | | | 685,006 | | | | | | 650,413 | | |
Deferred tax liability | | | | | | | | | | | | | | | | | | | | | | | | | |
Property, plant and Equipment − amortization and depreciation | | | | | — | | | | | | (339,106) | | | | | | — | | | | | | (393,036) | | |
Intangibles/ Goodwill | | | | | (894,353) | | | | | | — | | | | | | (875,370) | | | | | | — | | |
Passthrough income | | | | | — | | | | | | — | | | | | | (24,042) | | | | | | — | | |
Deferred tax liability | | | | | (894,353) | | | | | | (339,106) | | | | | | (899,413) | | | | | | (393,036) | | |
Net deferred tax (liability) asset | | | | | (329,104) | | | | | | 376,062 | | | | | | (214,407) | | | | | | 257,377 | | |
| Ultimate holding company: | |
| M/s. TGP Trading FZCO, U.A.E. | |
| Direct subsidiaries: | |
| Primacy Industries Limited | |
| Primacy Global Enterprises Private Limited | |
| Step-down subsidiary: | |
| MVP International Inc. | |
| Associate/ Significant influence: | |
| Goose Creek Candles, LLC | |
| Minority owner: | |
| Manipal Media Network Limited | |
| Directors: | |
| Ms. Sandhya Satish Pai | |
| Mr. Gautham Pai | |
| Mr. Satish Pai | |
| Ms. Vanita Pai | |
| | | For the period ended June 30, | | |||||||||
Nature of Transactions/Parties | | | 2022 | | | 2021 | | ||||||
Interest received on advance given: | | | | | | | | | | | | | |
– Goose Creek Candles, LLC | | | | | 59,389 | | | | | | 59,389 | | |
Interest expense on loan taken: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 264,272 | | | | | | 264,998 | | |
Expenses incurred by Company on behalf of: | | | | | | | | | | | | | |
– Goose Creek Candles, LLC | | | | | — | | | | | | 6,559 | | |
– Manipal Media Network Limited | | | | | 33,536 | | | | | | — | | |
Expenses incurred on behalf of Company by: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 278 | | | | | | — | | |
Nature of Transactions/Parties | | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
Accounts receivable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 12,536 | | | | | | 8,587 | | |
Interest receivable: | | | | | | | | | | | | | |
– Goose Creek Candles, LLC | | | | | 59,389 | | | | | | — | | |
Accounts payable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 278 | | | | | | — | | |
Advance receivable: | | | | | | | | | | | | | |
– Goose Creek Candles, LLC | | | | | 3,234,199 | | | | | | 3,234,199 | | |
– M/s. TGP Trading FZCO | | | | | 100,000 | | | | | | 100,000 | | |
Trade advances: | | | | | | | | | | | | | |
– Goose Creek Candles, LLC | | | | | 92,851 | | | | | | 96,823 | | |
Loan payable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 13,249,925 | | | | | | 13,249,925 | | |
– Mr. Gautham Pai | | | | | 3,007,050 | | | | | | 1,807,050 | | |
Interest payable: | | | | | | | | | | | | | |
– Manipal Media Network Limited | | | | | 4,694,444 | | | | | | 4,430,171 | | |
| | | June 30, | | |||||||||
Geography | | | 2022 | | | 2021 | | ||||||
India | | | | | 5,017,954 | | | | | | 5,846,352 | | |
United States of America | | | | | 18,676,043 | | | | | | 12,029,535 | | |
Australia | | | | | 1,337,139 | | | | | | 1,172,987 | | |
United Kingdom | | | | | 1,821,754 | | | | | | 2,250,915 | | |
Other countries | | | | | 1,761,547 | | | | | | 1,054,038 | | |
| | | | | 28,614,437 | | | | | | 22,353,827 | | |
| | | As at June 30, 2022 | | | As at March 31, 2022 | | ||||||
United States of America | | | | | 22,038,620 | | | | | | 22,995,849 | | |
India | | | | | 5,124,255 | | | | | | 5,333,868 | | |
| | | | | 27,162,875 | | | | | | 28,329,717 | | |
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| Exhibit A – Purchaser Support Agreement | |
| Exhibit B – Accounting Methodologies | |
| Exhibit C – Form of Escrow Agreement | |
| Schedule 1.1(a): Assumed Funded Debt | |
| Schedule 1.1(b): Closing Funded Debt | |
| Schedule 1.1(c): Retention Payments | |
| Schedule 1.1(d): Company Expenses (Liabilities and Obligations) | |
| Schedule 1.1(e): Dormant Subsidiaries | |
| Schedule 1.1(f): Excluded Severance | |
| Schedule 1.1(g): Incurred Purchaser Expenses | |
| Schedule 1.1(h): Leases | |
| Schedule 1.1(i): LTM EBITDA Methodologies | |
| Schedule 1.1(j): Permitted Liens | |
| Schedule 1.1(k): Sponsor Supporters | |
| Schedule 6.1(a): Conduct of the Business | |
| Schedule 6.13(b): Restricted Employees | |
| Schedule 7.2(i): Company Consents | |
| Schedule 7.2(j): Payoff Letters | |
| Schedule 7.2(k): Director Resignations | |
| | | | PURCHASER: | | |||
| | | | GLOBAL CONSUMER ACQUISITION CORP. | | |||
| | | | By: | | | /s/ Rohan Ajila | |
| | | | | | | Name: Rohan Ajila | |
| | | | | | | Title: Chief Executive Officer | |
| | | | SELLER: | | |||
| | | | CLP LUMINEX HOLDINGS, LLC | | |||
| | | | By: | | | /s/ Mayank Singh | |
| | | | | | | Name: Mayank Singh | |
| | | | | | | Title: Authorized Signatory | |
| | | | COMPANY: | | |||
| | | | LUMINEX HOME DECOR & FRAGRANCE HOLDING CORPORATION | | |||
| | | | By: | | | /s/ Scott Meader | |
| | | | | | | Name: Scott Meader | |
| | | | | | | Title: Chief Executive Officer | |
| | | | PURCHASER: | | |||
| | | | GLOBAL CONSUMER ACQUISITION CORP. | | |||
| | | | By: | | | /s/ Rohan Ajila | |
| | | | | | | Name: Rohan Ajila | |
| | | | | | | Title: Chief Executive Officer | |
| | | | SELLER: | | |||
| | | | CLP LUMINEX HOLDINGS, LLC | | |||
| | | | By: | | | /s/ Mayank Singh | |
| | | | | | | Name: Mayank Singh | |
| | | | | | | Title: Authorized Signatory | |
| | | | COMPANY: | | |||
| | | | LUMINEX HOME DÉCOR & FRAGRANCE HOLDING CORPORATION | | |||
| | | | By: | | | /s/ Scott Meader | |
| | | | | | | Name: Scott Meader | |
| | | | | | | Title: Chief Executive Officer | |
| | | | PURCHASER: | |
| | | | GLOBAL CONSUMER ACQUISITION CORP. | |
| | | | By: /s/ Rohan Ajila Name: Rohan Ajila Title: Chief Executive Officer | |
| | | | SELLER: | |
| | | | CLP LUMINEX HOLDINGS, LLC | |
| | | | By: /s/ Mayank Singh Name: Mayank Singh Title: Authorized Signatory | |
| | | | COMPANY: | |
| | | | LUMINEX HOME DÉCOR & FRAGRANCE HOLDING CORPORATION | |
| | | | By: /s/ Scott Meader Name: Scott Meader Title: Chief Executive Officer | |
| | | | MAKER: | |
| | | | GLOBAL CONSUMER ACQUISITION CORP. | |
| | | | By: Name: Title: | |
| | | | ACKNOWLEDGED AND AGREED AS OF THE DATE FIRST WRITTEN ABOVE: | |
| | | | HOLDER: | |
| | | | CLP LUMINEX HOLDINGS, LLC | |
| | | | By: Name: Title: | |
Lender | | | Debt | | | Description | |
Wells Fargo | | | US Revolver | | | Amended and Restated Loan and Security Agreement (and related documents) between Wells Fargo Bank, Candle-Lite Company, LLC, PartyLite Worldwide, LLC, PartyLite Gifts, Inc., PartyLite Trading SA, CLP Candle, LLC, Luminex Home Décor and Fragrance Company, LLC (AKA CB Shine Holdings, LLC), Blyth International BV, Blyth Holding B.V., and Blyth UK, LLP, dated May 17, 2016, as amended. | |
Wells Fargo | | | Swiss Revolver | | | Amended and Restated Loan and Security Agreement (and related documents) between Wells Fargo Bank, Candle-Lite Company, LLC, PartyLite Worldwide, LLC, PartyLite Gifts, Inc., PartyLite Trading SA, CLP Candle, LLC, Luminex Home Décor and Fragrance Company, LLC (AKA CB Shine Holdings, LLC), Blyth International BV, Blyth Holding B.V., and Blyth UK, LLP, dated May 17, 2016, as amended. | |
German Gov’t | | | KFW Loan (500k Euro) | | | Promotional Loan Agreement #0030669010 between UniCredit Bank AG and PartyLite GmbH. | |
Various | | | Capital Leases as determined in accordance with GAAP. | | | 1. Master Lease Agreement between Crown Credit Company d/b/a Crown Equipment Corporation and Candle-lite Company, LLC dated February 28, 2019. 2. Master Lease Agreement, dated November 20, 2018, by and between Candle-lite Company, LLC, an Illinois limited liability company, and Crown Equipment Corporation, an Ohio corporation d/b/a Crown Credit Company. 3. Equipment Lease Agreement No. 9679141001 between Wells Fargo Vendor Financial Services, LLC and Candle-lite Company, LLC signed March 23, 2018, as amended by that certain Equipment Lease Agreement Amendment, dated December 17, 2019. 4. Master Lease Document containing Equipment Finance Agreement #07314MG19 between Dimension Funding LLC and Candle-lite Company, LLC, dated January 3, 2020. 5. Master Lease Agreement No. 10597 and Equipment Schedule between First Financial Holdings, LLC and Candle-lite Company, LLC dated February 6, 2020; Equipment Schedule No. 10597-001 between First Financial Holdings and Candle- lite Company, LLC, dated February 6, 2020. 6. Master Lease Document containing Equipment Finance Agreement #07409MG19 between Dimension Funding, LLC and Candle-lite Company, LLC signed on February 18, 2020. | |
Lender | | | Debt | | | Description | |
| | | | | | 7. Equipment Finance Agreement #07848MG20 between Dimension Funding LLC and Candle lite Company, LLC, dated June 3, 2020. 8. Equipment Finance Agreement #07849MG20 between Dimension Funding LLC and Candle lite Company, LLC, dated June 3, 2020. 9. Finance Agreement between First Business Equipment Finance, LLC and Candle-lite Company, LLC signed on March 26, 2020. Amendment to Agreement No. 0002349 between First Business Equipment Finance, LLC and Candle-lite Company, LLC signed on February 11, 2021. 10. Lease Agreement — $1 Purchase Option between Wells Fargo Bank N.A. and Candle-lite Company, LLC signed on March 4, 2021. | |
| Prospect | | | Term Loan A | | | Loan Agreement (and related documents) between Prospect Capital Corporation and Candle lite Company, LLC, PartyLite Worldwide, LLC, PartyLite Gifts, Inc., Luminex Home Décor & Fragrance Holding Company, Luminex Home Decor & Fragrance Company, LLC, dated January 23, 2018, as amended | |
| Prospect | | | Term Loan B | | | Loan Agreement (and related documents) between Prospect Capital Corporation and Candle-lite Company, LLC, PartyLite Worldwide, LLC, PartyLite Gifts, Inc., Luminex Home Décor & Fragrance Holding Company, Luminex Home Decor & Fragrance Company, LLC, dated January 23, 2018, as amended | |
| Wells Fargo (CIBC originated) | | | Leesburg Mortgage | | | Loan Agreement between CIBC Inc. and CL Property, LLC, dated April 11, 2019; Open-End Mortgage, Security Agreement and Fixture Filing (and related documents) between CIBC, Inc. and CL Property, LLC, dated April 11, 2019, as assigned. | |
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| | | | PURCHASER: | | |||
| | | | GLOBAL CONSUMER ACQUISITION CORP. | | |||
| | | | By: | | | /s/ Rohan Ajila Name: Rohan Ajila Title: Chief Executive Officer | |
| | | | SELLER: | | |||
| | | | TGP TRADING FZCO | | |||
| | | | By: | | | /s/ Gautham Pai Name: Gautham Pai Title: Director and Authorized Signatory | |
| | | | COMPANY: | | |||
| | | | GP GLOBAL LIMITED | | |||
| | | | By: | | | /s/ Gautham Pai Name: Gautham Pai Title: Director | |