| Delaware | | | 6770 | | | 85-2373325 | |
| (State or other jurisdiction of incorporation or organization) | | | (Primary Standard Industrial Classification Code Number) | | | (I.R.S. Employer Identification Number) | |
| Brad L. Shiffman, Esq. Kathleen A. Cunningham, Esq. Blank Rome LLP 1271 Avenue of the Americas New York, New York 10020 (212) 885-5000 Brad.shiffman@blankrome.com Kathleen.cunningham@blankrome.com | | | Mitchell S. Nussbaum, Esq. Tahra Wright, Esq. Loeb & Loeb LLP 345 Park Avenue New York, New York 10154 (212) 407-4000 | |
| Large accelerated file ☐ | | | Accelerated filer ☐ | | | Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | | | | | | | Emerging growth company ☒ | |
| | | | Sincerely, | |
| | | | Thomas Finke Chairman and Chief Executive Officer | |
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| | | | A-1 | | | |
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| | | | C-1 | | | |
| | | | D-1 | | |
Holders | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | ||||||||||||||||||||||||||||||||||||||||||||||||
Adara Public Stockholders | | | | 11,500,000 | | | | | 18.8% | | | | | 5,750,000 | | | | | 10.4% | | | | | 1,485,149 | | | | | 2.9% | | | | | | 11,500,000 | | | | | 18.8% | | | | | 5,750,000 | | | | | 10.4% | | | | | 1,473,587 | | | | | 2.9% | | | ||||||||||||
Adara Initial Stockholders(4) | | | | 2,000,000 | | | | | 3.3% | | | | | 2,000,000 | | | | | 3.6% | | | | | 2,000,000 | | | | | 3.9% | | | | | | 2,000,000 | | | | | 3.3% | | | | | 2,000,000 | | | | | 3.6% | | | | | 2,000,000 | | | | | 3.9% | | | ||||||||||||
Alliance Stockholders(5) | | | | 47,500,000 | | | | | 77.9% | | | | | 47,500,000 | | | | | 86.0% | | | | | 47,500,000 | | | | | 93.2% | | | | | | 47,500,000 | | | | | 77.9% | | | | | 47,500,000 | | | | | 86.0% | | | | | 47,500,000 | | | | | 93.2% | | | ||||||||||||
Total Shares Outstanding Excluding Contingent Consideration Shares and Adara Warrants | | | | 61,000,000 | | | | | 100.0% | | | | | 55,250,000 | | | | | 100.0% | | | | | 50,985,149 | | | | | 100.0% | | | | | | 61,000,000 | | | | | 100.0% | | | | | 55,250,000 | | | | | 100.0% | | | | | 50,973,587 | | | | | 100.0% | | | ||||||||||||
Total Equity Value Post- Redemptions | | | $ | 616,100,000 | | | | | | | | | $ | 558,025,000 | | | | | | | | | $ | 514,950,005 | | | | | | | | | | $ | 619,712,420 | | | | | | | | | $ | 561,296,905 | | | | | | | | | $ | 517,851,885 | | | | | | | | ||||||||||||
Assumed Per Share Value | | | $ | 10.10 | | | | | | | | | $ | 10.10 | | | | | | | | | $ | 10.10 | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Assumed Per Share Value (approximate) | | | $ | 10.16 | | | | | | | | | $ | 10.16 | | | | | | | | | $ | 10.16 | | | | | | | |
Additional Dilution Sources(8) | | | No Redemption Scenario(1) | | | % of Total(7) | | | Illustrative Redemption Scenario(7) | | | % of Total(6) | | | Contractual Maximum Redemption Scenario(3) | | | % of Total(7) | | ||||||||||||||||||
Contingent Consideration Shares(8) | | | | | 60,000,000 | | | | | | 49.6% | | | | | | 60,000,000 | | | | | | 52.1% | | | | | | 60,000,000 | | | | | | 54.0% | | |
Adara Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants(9) | | | | | 5,750,000 | | | | | | 8.6% | | | | | | 5,750,000 | | | | | | 9.4% | | | | | | 5,750,000 | | | | | | 10.1% | | |
Private Warrants(10) | | | | | 4,120,000 | | | | | | 6.3% | | | | | | 4,120,000 | | | | | | 6.9% | | | | | | 4,120,000 | | | | | | 7.8% | | |
Underwriter Warrants(11) | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | |
Total Additional Dilutive Sources(12) | | | | | 69,920,000 | | | | | | 53.4% | | | | | | 69,920,000 | | | | | | 55.6% | | | | | | 69,920,000 | | | | | | 57.8% | | |
Holders | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | ||||||||||||||||||||||||||||||||||||||||||||||||
Adara Public Stockholders | | | | 11,500,000 | | | | | 18.8% | | | | | 5,750,000 | | | | | 10.4% | | | | | 1,485,149 | | | | | 2.9% | | | | | | 11,500,000 | | | | | 18.8% | | | | | 5,750,000 | | | | | 10.4% | | | | | 1,473,587 | | | | | 2.9% | | | ||||||||||||
Adara Initial Stockholders(4) | | | | 2,000,000 | | | | | 3.3% | | | | | 2,000,000 | | | | | 3.6% | | | | | 2,000,000 | | | | | 3.9% | | | | | | 2,000,000 | | | | | 3.3% | | | | | 2,000,000 | | | | | 3.6% | | | | | 2,000,000 | | | | | 3.9% | | | ||||||||||||
Alliance Stockholders(5) | | | | 47,500,000 | | | | | 77.9% | | | | | 47,500,000 | | | | | 86.0% | | | | | 47,500,000 | | | | | 93.2% | | | | | | 47,500,000 | | | | | 77.9% | | | | | 47,500,000 | | | | | 86.0% | | | | | 47,500,000 | | | | | 93.2% | | | ||||||||||||
Total Shares Outstanding Excluding Contingent Consideration Shares and Adara Warrants | | | | 61,000,000 | | | | | 100.0% | | | | | 55,250,000 | | | | | 100.0% | | | | | 50,985,149 | | | | | 100.0% | | | | | | 61,000,000 | | | | | 100.0% | | | | | 55,250,000 | | | | | 100.0% | | | | | 50,973,587 | | | | | 100.0% | | |
Holders | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | ||||||||||||||||||||||||||||||
Total Equity Value Post- Redemptions | | | $ | 616,100,000 | | | | | | $ | 558,025,000 | | | | | | $ | 514,950,005 | | | | | | | $ | 619,712,420 | | | | | | $ | 561,296,905 | | | | | | $ | 517,851,885 | | | | | ||||||||||||
Assumed Per Share Value | | | $ | 10.10 | | | | | | $ | 10.10 | | | | | | $ | 10.10 | | | | | ||||||||||||||||||||||||||||||||||
Assumed Per Share Value (approximate) | | | $ | 10.16 | | | | | | $ | 10.16 | | | | | | $ | 10.16 | | | | |
Additional Dilution Sources(8) | | | No Redemption Scenario(1) | | | % of Total(7) | | | Illustrative Redemption Scenario(7) | | | % of Total(6) | | | Contractual Maximum Redemption Scenario(3) | | | % of Total(7) | | ||||||||||||||||||
Contingent Consideration Shares(8) | | | | | 60,000,000 | | | | | | 49.6% | | | | | | 60,000,000 | | | | | | 52.1% | | | | | | 60,000,000 | | | | | | 54.0% | | |
Adara Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants(9) | | | | | 5,750,000 | | | | | | 8.6% | | | | | | 5,750,000 | | | | | | 9.4% | | | | | | 5,750,000 | | | | | | 10.1% | | |
Private Warrants(10) | | | | | 4,120,000 | | | | | | 6.3% | | | | | | 4,120,000 | | | | | | 6.9% | | | | | | 4,120,000 | | | | | | 7.8% | | |
Underwriter Warrants(11) | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | |
Total Additional Dilutive Sources(12) | | | | | 69,920,000 | | | | | | 53.4% | | | | | | 69,920,000 | | | | | | 55.6% | | | | | | 69,920,000 | | | | | | 57.8% | | |
| | | For the Year Ended June 30, 2022 | | | For the Year Ended June 30, 2021 | | | For the Year Ended June 30, 2020 | | |||||||||
Total revenue | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Total operating expenses | | | | $ | 140,285 | | | | | $ | 134,775 | | | | | $ | 109,850 | | |
Net Income | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Net Income per share attributable to common stockholders – Basic and diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
| | | As of June 30, 2022 | | | As of June 30, 2021 | | ||||||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | |
Total assets | | | | $ | 473,039 | | | | | $ | 388,963 | | |
Total liabilities | | | | $ | 364,111 | | | | | $ | 308,661 | | |
Retained earnings | | | | $ | 71,668 | | | | | $ | 43,049 | | |
| | | For the Quarter Ended September 30, 2022 | | | For the Year Ended June 30, 2022 | | | For the Year Ended June 30, 2021 | | |||||||||
Total Revenue | | | | $ | 238,701 | | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | |
Total Operating Expenses | | | | $ | 33,261 | | | | | $ | 140,285 | | | | | $ | 134,775 | | |
Net (Loss) Income | | | | $ | (7,509) | | | | | $ | 28,619 | | | | | $ | 34,178 | | |
Net (Loss) Income Per Share Attributable To Common Stockholders – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 31.80 | | | | | $ | 37.98 | | |
| | | As of September 30, 2022 | | | As of June 30, 2022 | | | As of June 30, 2021 | | |||||||||
Consolidated Balance Sheet Data: | | | | | | | | | | | | | | | |||||
Total Assets | | | | $ | 516,943 | | | | | $ | 473,039 | | | | | $ | 388,963 | | |
Total Liabilities | | | | $ | 415,524 | | | | | $ | 364,111 | | | | | $ | 308,661 | | |
Retained Earnings | | | | $ | 64,159 | | | | | $ | 71,668 | | | | | $ | 43,049 | | |
| | | For the Six Months Ended June 30, 2022 | | | For the Year Ended December 31, 2021 | | | For the period from August 5, 2020 (inception) through December 31, 2020 | | |||||||||
Operating formation costs | | | | $ | 1,252,359 | | | | | $ | 976,831 | | | | | $ | 5,476 | | |
Interest earned on marketable securities held in Trust Account | | | | | 157,895 | | | | | | 10,281 | | | | | | — | | |
Transaction costs incurred in connection with IPO | | | | | — | | | | | | (86,544) | | | | | | — | | |
Change fair value of warrant holders | | | | | 3,075,200 | | | | | | 4,297,300 | | | | | | — | | |
Net income (loss) | | | | | 1,980,736 | | | | | | 3,244,206 | | | | | | (5,476) | | |
Basic and diluted net (income loss) per share, Class A common stock | | | | | 0.14 | | | | | | 0.25 | | | | | | — | | |
Basic and diluted net (income loss) per share, Class B common stock | | | | $ | 0.14 | | | | | $ | 0.25 | | | | | $ | (0.00) | | |
| | | As of June 30, 2022 | | | As of December 31, 2021 | | | As of December 31, 2020 | | |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 116,448,616 | | | | | $ | 117,083,857 | | | | | $ | 624,406 | | |
Total liabilities | | | | | 2,685,068 | | | | | | 5,301,045 | | | | | | 604,882 | | |
Total redeemable shares of common stock | | | | | 116,150,000 | | | | | | 116,150,000 | | | | | | — | | |
Total shareholders’ (deficit) equity | | | | $ | (2,386,452) | | | | | $ | (4,367,188) | | | | | $ | 79,524 | | |
| | | For the Nine Months Ended September 30, 2022 | | | For the Year Ended December 31, 2021 | | | For the period from August 5, 2020 (inception) through December 31, 2020 | | |||||||||
Operating formation costs | | | | $ | 1,887,001 | | | | | $ | 976,831 | | | | | $ | 5,476 | | |
Interest earned on marketable securities held in Trust Account | | | | | 670,720 | | | | | | 10,281 | | | | | | — | | |
Transaction costs incurred in connection with IPO | | | | | — | | | | | | (86,544) | | | | | | — | | |
Change fair value of warrant holders | | | | | 2,976,000 | | | | | | 4,297,300 | | | | | | — | | |
Net income (loss) | | | | | 1,690,242 | | | | | | 3,244,206 | | | | | | (5,476) | | |
Basic and diluted net (income loss) per share, Class A common stock | | | | | 0.12 | | | | | | 0.25 | | | | | | — | | |
Basic and diluted net (income loss) per share, Class B common stock | | | | $ | 0.12 | | | | | $ | 0.25 | | | | | $ | (0.00) | | |
| | | As of September 30, 2022 | | | As of December 31, 2021 | | | As of December 31, 2020 | | |||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | | | | | |
Total assets | | | | $ | 116,913,836 | | | | | $ | 117,083,857 | | | | | $ | 624,406 | | |
Total liabilities | | | | | 3,440,782 | | | | | | 5,301,045 | | | | | | 604,882 | | |
Total redeemable shares of common stock | | | | | 116,411,474 | | | | | | 116,150,000 | | | | | | — | | |
Total shareholders’ (deficit) equity | | | | $ | (2,938,420) | | | | | $ | (4,367,188) | | | | | $ | 19,524 | | |
Year Ended December 31, 2021 | | Pro Forma Combined (Assuming No Redemptions) | | Pro Forma Combined (Assuming Maximum Redemptions) | | | Pro Forma Combined (Assuming No Redemptions) | | Pro Forma Combined (Assuming Maximum Redemptions) | | ||||||||||||||||
Revenue | | | $ | 1,441,762 | | | | $ | 1,441,762 | | | | | $ | 1,441,762 | | | | $ | 1,441,762 | | | ||||
Net loss per share – basic and diluted | | | $ | 0.68 | | | | $ | 0.88 | | | | | $ | 0.68 | | | | $ | 0.88 | | | ||||
Weighted-average Common shares outstanding – basic and diluted | | | | 61,000,000 | | | | | 50,485,149 | | | | | | 61,000,000 | | | | | 50,473,587 | | | ||||
Summary Unaudited Pro Forma Condensed Combined Balance Sheet Data as of June 30, 2022 | | |||||||||||||||||||||||||
Summary Unaudited Pro Forma Condensed Combined Balance Sheet Data as of September 30, 2022 | Summary Unaudited Pro Forma Condensed Combined Balance Sheet Data as of September 30, 2022 | | ||||||||||||||||||||||||
Total assets | | | $ | 581,522 | | | | $ | 484,437 | | | | | $ | 624,992 | | | | $ | 527,197 | | | ||||
Total liabilities | | | $ | 365,759 | | | | $ | 365,759 | | | | | $ | 417,072 | | | | $ | 417,072 | | | ||||
Total stockholders’ equity | | | $ | 215,763 | | | | $ | 118,678 | | | | | $ | 207,920 | | | | $ | 110,125 | | |
| | Historical | | No Redemptions Scenario | | Maximum Redemptions Scenario | | | Historical | | No Redemptions Scenario | | Maximum Redemptions Scenario | | ||||||||||||||||||||||||||||||||||||
As of and For the Six Months Ended June 30, 2022 | | Adara | | Alliance | | Pro Forma Combined | | Pro Forma Combined | | |||||||||||||||||||||||||||||||||||||||||
As of and For the nine Months Ended September 30, 2022 | | Adara | | Alliance | | Pro Forma Combined | | Pro Forma Combined | | |||||||||||||||||||||||||||||||||||||||||
Pro Forma Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Weighted Average Shares of Class A Outstanding – Basic and Diluted | | | | 11,500,000 | | | | | — | | | | | 61,000,000 | | | | | 50,485,149 | | | | | | 11,500,000 | | | | | — | | | | | 61,000,000 | | | | | 50,473,587 | | | ||||||||
Income Per Share Class A – Basic and Diluted | | | $ | 0.14 | | | | | — | | | | $ | (0.01) | | | | $ | (0.02) | | | | | $ | 0.12 | | | | | — | | | | $ | (0.15) | | | | $ | (0.18) | | | ||||||||
Weighted Average Shares of Class B Outstanding – Basic and Diluted | | | | 2,875,000 | | | | | — | | | | | — | | | | | — | | | | | | 2,875,000 | | | | | — | | | | | — | | | | | — | | | ||||||||
Income Per Share Class B – Basic and Diluted | | | $ | 0.14 | | | | | — | | | | | — | | | | | — | | | | | $ | 0.12 | | | | | — | | | | | — | | | | | — | | | ||||||||
Weighted Average Common Shares Outstanding – Basic and Diluted | | | | — | | | | | 900 | | | | | — | | | | | — | | | | | | — | | | | | 900 | | | | | — | | | | | — | | | ||||||||
Income Per Common Share – Basic and Diluted | | | | — | | | | $ | (1,007.78) | | | | | — | | | | | — | | | | | | — | | | | $ | (9,351) | | | | | — | | | | | — | | | ||||||||
Book Value Per Share | | | $ | (0.17) | | | | $ | 121,031 | | | | $ | 3.54 | | | | $ | 2.35 | | | | | $ | (0.20) | | | | $ | 112,688 | | | | $ | 3.41 | | | | $ | 2.18 | | |
| | Historical | | No Redemptions Scenario | | Maximum Redemptions Scenario | | | Historical | | No Redemptions Scenario | | Maximum Redemptions Scenario | | ||||||||||||||||||||||||||||||||||||
For the Year Ending December 31, 2021 | | Adara (Historical from 1/1/21 through 12/31/21) | | Alliance | | Pro Forma Combined | | Pro Forma Combined | | | Adara (Historical from 1/1/21 through 12/31/21) | | Alliance | | Pro Forma Combined | | Pro Forma Combined | | ||||||||||||||||||||||||||||||||
Pro Forma Income Per Share | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||
Weighted Average Shares of Class A Outstanding – Basic and Diluted | | | | 11,500,000 | | | | | — | | | | | 61,000,000 | | | | | 50,485,149 | | | | | | 11,500,000 | | | | | — | | | | | 61,000,000 | | | | | 50,473,587 | | | ||||||||
Income Per Share Class A – Basic and Diluted | | | $ | 0.25 | | | | $ | — | | | | $ | 0.68 | | | | $ | 0.88 | | | | | $ | 0.25 | | | | $ | — | | | | $ | 0.68 | | | | $ | 0.88 | | | ||||||||
Weighted Average Shares of Class B Outstanding – Basic and Diluted | | | | 2,875,000 | | | | | — | | | | | — | | | | | — | | | | | | 2,875,000 | | | | | — | | | | | — | | | | | — | | | ||||||||
Income Per Share Class B – Basic and Diluted | | | $ | 0.25 | | | | | — | | | | | — | | | | | — | | | | | $ | 0.25 | | | | | — | | | | | — | | | | | — | | | ||||||||
Weighted Average Common Shares Outstanding – Basic and Diluted | | | | — | | | | | 900 | | | | | — | | | | | — | | | | | | — | | | | | 900 | | | | | — | | | | | — | | | ||||||||
Income Per Common Share – Basic and Diluted | | | | — | | | | $ | 49,534.44 | | | | | | | | | | | | | | | | — | | | | $ | 49,534.44 | | | | | | | | | | | | |
($ in thousands) | | June 30, 2022 | | June 30, 2021 | | | September 30, 2022 | | June 30, 2022 | | ||||||||||||||||
Bank of America Revolving Credit Agreement | | | $ | 136,176 | | | | $ | 53,955 | | | |||||||||||||||
Bank of America Revolving Credit Facility | | | $ | 183,691 | | | | $ | 136,176 | | | |||||||||||||||
Less: Deferred Finance Costs | | | | (208) | | | | | (375) | | | | | | (167) | | | | | (208) | | | ||||
Revolving Credit, Net | | | $ | 135,968 | | | | $ | 53,580 | | | | | $ | 183,524 | | | | $ | 135,968 | | |
Holders | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | | No Redemption Scenario(1) | | % of Total | | Illustrative Redemption Scenario(2) | | % of Total | | Contractual Maximum Redemption Scenario(3) | | % of Total | | ||||||||||||||||||||||||||||||||||||||||||||||||
Adara Public Stockholders | | | | 11,500,000 | | | | | 18.8% | | | | | 5,750,000 | | | | | 10.4% | | | | | 1,485,149 | | | | | 2.9% | | | | | | 11,500,000 | | | | | 18.8% | | | | | 5,750,000 | | | | | 10.4% | | | | | 1,473,587 | | | | | 2.9% | | | ||||||||||||
Adara Initial Stockholders(4) | | | | 2,000,000 | | | | | 3.3% | | | | | 2,000,000 | | | | | 3.6% | | | | | 2,000,000 | | | | | 3.9% | | | | | | 2,000,000 | | | | | 3.3% | | | | | 2,000,000 | | | | | 3.6% | | | | | 2,000,000 | | | | | 3.9% | | | ||||||||||||
Alliance Stockholders(5) | | | | 47,500,000 | | | | | 77.9% | | | | | 47,500,000 | | | | | 86.0% | | | | | 47,500,000 | | | | | 93.2% | | | | | | 47,500,000 | | | | | 77.9% | | | | | 47,500,000 | | | | | 86.0% | | | | | 47,500,000 | | | | | 93.2% | | | ||||||||||||
Total Shares Outstanding Excluding Contingent Consideration Shares and Adara Warrants | | | | 61,000,000 | | | | | 100.0% | | | | | 55,250,000 | | | | | 100.0% | | | | | 50,985,149 | | | | | 100.0% | | | | | | 61,000,000 | | | | | 100.0% | | | | | 55,250,000 | | | | | 100.0% | | | | | 50,973,587 | | | | | 100.0% | | | ||||||||||||
Total Equity Value Post- Redemptions | | | $ | 616,100,000 | | | | | | | | | $ | 558,025,000 | | | | | | | | | $ | 514,950,005 | | | | | | | | | | $ | 619,712,420 | | | | | | | | | $ | 561,296,905 | | | | | | | | | $ | 517,851,885 | | | | | | | | ||||||||||||
Assumed Per Share Value | | | $ | 10.10 | | | | | | | | | $ | 10.10 | | | | | | | | | $ | 10.10 | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||
Assumed Per Share Value (approximate) | | | $ | 10.16 | | | | | | | | | $ | 10.16 | | | | | | | | | $ | 10.16 | | | | | | | |
Additional Dilution Sources(8) | | | No Redemption Scenario(1) | | | % of Total(7) | | | Illustrative Redemption Scenario(7) | | | % of Total(6) | | | Contractual Maximum Redemption Scenario(3) | | | % of Total(7) | | ||||||||||||||||||
Contingent Consideration Shares(8) | | | | | 60,000,000 | | | | | | 49.6% | | | | | | 60,000,000 | | | | | | 52.1% | | | | | | 60,000,000 | | | | | | 54.0% | | |
Adara Warrants | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Public Warrants(9) | | | | | 5,750,000 | | | | | | 8.6% | | | | | | 5,750,000 | | | | | | 9.4% | | | | | | 5,750,000 | | | | | | 10.1% | | |
Private Warrants(10) | | | | | 4,120,000 | | | | | | 6.3% | | | | | | 4,120,000 | | | | | | 6.9% | | | | | | 4,120,000 | | | | | | 7.8% | | |
Underwriter Warrants(11) | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | | | | | 50,000 | | | | | | 0.1% | | |
Total Additional Dilutive Sources(12) | | | | | 69,920,000 | | | | | | 53.4% | | | | | | 69,920,000 | | | | | | 55.6% | | | | | | 69,920,000 | | | | | | 57.8% | | |
| | Assuming Minimum Redemptions | | Assuming Maximum Redemptions | | | Assuming Minimum Redemptions | | Assuming Maximum Redemptions | | ||||||||||||||||||||||||||||||||||||||||
| | Shares | | % | | Shares | | % | | | Shares | | % | | Shares | | % | | ||||||||||||||||||||||||||||||||
Adara Class A common stockholders (Public Shareholders) | | | | 11,500,000 | | | | | 18.8 | | | | | 1,485,149 | | | | | 2.9 | | | | | | 11,500,000 | | | | | 18.8 | | | | | 1,473,587 | | | | | 2.9 | | | ||||||||
Adara Class A common stockholders (Sponsor) | | | | 2,000,000 | | | | | 3.3 | | | | | 1,500,000 | | | | | 3.0 | | | | | | 2,000,000 | | | | | 3.3 | | | | | 1,500,000 | | | | | 3.0 | | | ||||||||
Former Alliance stockholders(1) | | | | 47,500,000 | | | | | 77.9 | | | | | 47,500,000 | | | | | 94.1 | | | | | | 47,500,000 | | | | | 77.9 | | | | | 47,500,000 | | | | | 94.1 | | | ||||||||
Shares outstanding at Closing | | | | 61,000,000 | | | | | 100% | | | | | 50,485,149 | | | | | 100% | | | | | | 61,000,000 | | | | | 100% | | | | | 50,473,587 | | | | | 100% | | |
| | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | | US GAAP | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||||||||||||||
| | | Adara | | | Alliance | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash | | | | $ | 9 | | | | | $ | 1,469 | | | | | $ | 116,318 | | | | | | 1c | | | | | $ | 109,831 | | | | | $ | 15,168 | | | | | | 1c | | | | | $ | 12,746 | | |
| | | | | | | | | | | | | | | | | (7,965) | | | | | | 1f | | | | | | | | | | | | (3,900) | | | | | | 1f | | | | | | | | |
Accounts Receivables – Net | | | | | | | | | | | 98,698 | | | | | | | | | | | | | | | | | | 98,698 | | | | | | | | | | | | | | | | | | 98,698 | | |
Inventory | | | | | | | | | | | 249,439 | | | | | | | | | | | | | | | | | | 249,439 | | | | | | | | | | | | | | | | | | 249,439 | | |
Other Current Assets | | | | | 121 | | | | | | 9,129 | | | | | | | | | | | | | | | | | | 9,250 | | | | | | | | | | | | | | | | | | 9,250 | | |
Related Party Receivable | | | | | | | | | | | 245 | | | | | | | | | | | | | | | | | | 245 | | | | | | | | | | | | | | | | | | 245 | | |
Total Current Assets | | | | | 130 | | | | | | 358,980 | | | | | | 108,353 | | | | | | | | | | | | 467,463 | | | | | | 11,268 | | | | | | | | | | | | 370,378 | | |
Property & Equipment – Net | | | | | | | | | | | 3,284 | | | | | | | | | | | | | | | | | | 3,284 | | | | | | | | | | | | | | | | | | 3,284 | | |
Operating Lease Right-Of-Use Assets | | | | | | | | | | | 8,360 | | | | | | | | | | | | | | | | | | 8,360 | | | | | | | | | | | | | | | | | | 8,360 | | |
Intangible Assets | | | | | | | | | | | 18,764 | | | | | | | | | | | | | | | | | | 18,764 | | | | | | | | | | | | | | | | | | 18,764 | | |
Goodwill | | | | | | | | | | | 79,903 | | | | | | | | | | | | | | | | | | 79,903 | | | | | | | | | | | | | | | | | | 79,903 | | |
Marketable securities held in Trust Account | | | | | 116,318 | | | | | | — | | | | | | (116,318) | | | | | | 1c | | | | | | — | | | | | | (101,150) | | | | | | 1b | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,168) | | | | | | 1c | | | | | | | | |
Other Assets | | | | | | | | | | | 3,748 | | | | | | | | | | | | | | | | | | 3,748 | | | | | | | | | | | | | | | | | | 3,748 | | |
Total Assets | | | | $ | 116,448 | | | | | $ | 473,039 | | | | | $ | (7,965) | | | | | | | | | | | $ | 581,522 | | | | | $ | (105,050) | | | | | | | | | | | $ | 484,437 | | |
| | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | | US GAAP | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||
| | | Adara | | | Alliance | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | |||||||||||||||||||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Outstanding Checks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts Payable | | | | | | | | | | $ | 198,187 | | | | | | | | | | | | | | | | | $ | 198,187 | | | | | | | | | | | | | | $ | 198,187 | | |
Accrued Expenses | | | | | 569 | | | | | | 11,573 | | | | | | | | | | | | | | | | | | 12,142 | | | | | | | | | | | | | | | 12,142 | | |
Revolving Credit Facility | | | | | | | | | | | 135,968 | | | | | | | | | | | | | | | | | | 135,968 | | | | | | | | | | | | | | | 135,968 | | |
Promissory Note | | | | | 330 | | | | | | | | | | | | | | | | | | | | | | | | 330 | | | | | | | | | | | | | | | 330 | | |
Current Portion of Seller Note | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | |
Current Portion of Obligations Under Capital Lease | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | |
Current Portion of Operating Lease Obligations | | | | | | | | | | | 4,453 | | | | | | | | | | | | | | | | | | 4,453 | | | | | | | | | | | | | | | 4,453 | | |
Income Tax Payable | | | | | | | | | | | 418 | | | | | | | | | | | | | | | | | | 418 | | | | | | | | | | | | | | | 418 | | |
Total Current Liabilities | | | | | 899 | | | | | | 350,599 | | | | | | | | | | | | | | | | | | 351,498 | | | | | | | | | | | | | | | 351,498 | | |
Long-Term Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred Tax Liability | | | | | | | | | | | 5,271 | | | | | | | | | | | | | | | | | | 5,271 | | | | | | | | | | | | | | | 5,271 | | |
Debt – Non-Current | | | | | | | | | | | 3,377 | | | | | | | | | | | | | | | | | | 3,377 | | | | | | | | | | | | | | | 3,377 | | |
Long-Term Portion of Operating Lease Obligations | | | | | | | | | | | 4,864 | | | | | | | | | | | | | | | | | | 4,864 | | | | | | | | | | | | | | | 4,864 | | |
Warrant Liabilities | | | | | 1,786 | | | | | | — | | | | | | (1,037) | | | | | | 1h | | | | | | 749 | | | | | | (1,037) | | | | | | | | | 749 | | |
Total Long-Term Liabilities | | | | | 1,786 | | | | | | 13,512 | | | | | | (1,037) | | | | | | | | | | | | 14,261 | | | | | | (1,037) | | | | | | | | | 14,261 | | |
Total Liabilities | | | | $ | 2,685 | | | | | $ | 364,111 | | | | | $ | (1,037) | | | | | | | | | | | $ | 365,759 | | | | | $ | (1,037) | | | | | | | | $ | 365,759 | | |
| | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | | US GAAP | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||||||||||||||
| | | Adara | | | Alliance | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash | | | | $ | 30 | | | | | $ | 809 | | | | | $ | 116,831 | | | | | | 1c | | | | | $ | 111,205 | | | | | $ | 14,971 | | | | | | 1c | | | | | $ | 13,410 | | |
| | | | | | | | | | | | | | | | | (6,465) | | | | | | 1f | | | | | | | | | | | | (2,400) | | | | | | 1f | | | | | | | | |
Accounts Receivables – Net | | | | | | | | | | | 93,155 | | | | | | | | | | | | | | | | | | 93,155 | | | | | | | | | | | | | | | | | | 93,155 | | |
Inventory | | | | | | | | | | | 286,943 | | | | | | | | | | | | | | | | | | 286,943 | | | | | | | | | | | | | | | | | | 286,943 | | |
Other Current Assets | | | | | 53 | | | | | | 10,630 | | | | | | (2,400) | | | | | | 1f | | | | | | 8,283 | | | | | | (2,400) | | | | | | 1f | | | | | | 8,283 | | |
Related Party Receivable | | | | | | | | | | | 0 | | | | | | | | | | | | | | | | | | 0 | | | | | | | | | | | | | | | | | | 0 | | |
Total Current Assets | | | | | 83 | | | | | | 391,537 | | | | | | 107,966 | | | | | | | | | | | | 499,586 | | | | | | 10,171 | | | | | | | | | | | | 401,791 | | |
Property & Equipment – Net | | | | | | | | | | | 6,283 | | | | | | | | | | | | | | | | | | 6,283 | | | | | | | | | | | | | | | | | | 6,283 | | |
Operating Lease Right-Of-Use Assets | | | | | | | | | | | 7,263 | | | | | | | | | | | | | | | | | | 7,263 | | | | | | | | | | | | | | | | | | 7,263 | | |
Intangible Assets | | | | | | | | | | | 26,782 | | | | | | | | | | | | | | | | | | 26,782 | | | | | | | | | | | | | | | | | | 26,782 | | |
Goodwill | | | | | | | | | | | 81,903 | | | | | | | | | | | | | | | | | | 81,903 | | | | | | | | | | | | | | | | | | 81,903 | | |
Marketable securities held in Trust Account | | | | | 116,831 | | | | | | — | | | | | | (116,831) | | | | | | 1c | | | | | | — | | | | | | (101,860) | | | | | | 1b | | | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (14,971) | | | | | | 1c | | | | | | | | |
Other Assets | | | | | | | | | | | 371 | | | | | | | | | | | | | | | | | | 371 | | | | | | | | | | | | | | | | | | 371 | | |
Deferred Tax Asset | | | | | | | | | | | 2,804 | | | | | | | | | | | | | | | | | | 2,804 | | | | | | | | | | | | | | | | | | 2,804 | | |
Total Assets | | | | $ | 116,914 | | | | | $ | 516,943 | | | | | $ | (8,865) | | | | | | | | | | | $ | 624,992 | | | | | $ | (106,660) | | | | | | | | | | | $ | 527,197 | | |
| | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||
| | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | | | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 shares at $10.10 per share redemption value | | | | 116,150 | | | | | | | | | | (116,150) | | | | | 1b | | | | | — | | | | | (101,150) | | | | | 1b | | | | | — | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,000) | | | | | 1c | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding | | | | — | | | | | | | | | | — | | | | | 1d | | | | | — | | | | | — | | | | | 1d | | | | | — | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A New | | | | | | | | | | | | | | — | | | | | 1d | | | | | 6 | | | | | — | | | | | 1d | | | | | 5 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | 1 | | | | | 1b | | | | | | | | | | — | | | | | 1b | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | 5 | | | | | 1e | | | | | | | | | | 5 | | | | | 1e | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Paid-In Capital | | | | | | | | | 40,000 | | | | | (2,387) | | | | | 1a | | | | | 215,822 | | | | | (2,387) | | | | | 1a | | | | | 118,738 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | 116,149 | | | | | 1b | | | | | | | | | | 15,000 | | | | | 1c | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | (5) | | | | | 1e | | | | | | | | | | (5) | | | | | 1e | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | (2,400) | | | | | 1f | | | | | | | | | | (2,400) | | | | | 1f | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | (2,674) | | | | | 1e | | | | | | | | | | (2,674) | | | | | 1e | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | (5,565) | | | | | 1f | | | | | — | | | | | (1,500) | | | | | 1f | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | 71,667 | | | | | 1g | | | | | | | | | | 71,667 | | | | | 1g | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | 1,037 | | | | | 1h | | | | | | | | | | 1,037 | | | | | 1h | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Treasury stock, 57 shares carried at cost | | | | | | | | | (2,674) | | | | | 2,674 | | | | | 1e | | | | | — | | | | | 2,674 | | | | | 1e | | | | | — | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retained Earnings | | | | (2,387) | | | | | 71,667 | | | | | 2,387 | | | | | 1a | | | | | — | | | | | 2,387 | | | | | 1a | | | | | — | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | | | | | | (71,667) | | | | | 1g | | | | | | | | | | (71,667) | | | | | 1g | | | | | | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income | | | | | | | | | (65) | | | | | | | | | | | | | | | (65) | | | | | | | | | | | | | | | (65) | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Stockholders’ Equity | | | | (2,387) | | | | | 108,928 | | | | | 109,222 | | | | | | | | | | 215,763 | | | | | 12,137 | | | | | | | | | | 118,678 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | | | $ | 116,448 | | | | $ | 473,039 | | | | $ | (7,965) | | | | | | | | | $ | 581,522 | | | | $ | (105,050) | | | | | | | | | $ | 484,437 | | | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Checks | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Payable | | | | | | | | $ | 200,934 | | | | | | | | | | | | | | $ | 200,934 | | | | | | | | | | | | | | $ | 200,934 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses | | | | 1,051 | | | | | 14,274 | | | | | (800) | | | | | 1f | | | | | 14,525 | | | | | (800) | | | | | 1f | | | | | 14,525 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | | | | | | | | | 0 | | | | | | | | | | | | | | | 0 | | | | | | | | | | | | | | | 0 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Promissory Note | | | | 436 | | | | | | | | | | | | | | | | | | | | 436 | | | | | | | | | | | | | | | 436 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Portion of Seller Note | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Portion of Obligations Under Capital Lease | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | — | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current Portion of Operating Lease Obligations | | | | | | | | | 4,268 | | | | | | | | | | | | | | | 4,268 | | | | | | | | | | | | | | | 4,268 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Payable | | | | 69 | | | | | 0 | | | | | | | | | | | | | | | 69 | | | | | | | | | | | | | | | 69 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Current Liabilities | | | | 1,556 | | | | | 219,476 | | | | | (800) | | | | | | | | | | 220,232 | | | | | (800) | | | | | | | | | | 220,232 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revolving Credit Facility | | | | | | | | | 183,524 | | | | | | | | | | | | | | | 183,524 | | | | | | | | | | | | | | | 183,524 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Tax Liability | | | | | | | | | 5,271 | | | | | | | | | | | | | | | 5,271 | | | | | | | | | | | | | | | 5,271 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt – Non-Current | | | | | | | | | 3,377 | | | | | | | | | | | | | | | 3,377 | | | | | | | | | | | | | | | 3,377 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Portion of Operating Lease Obligations | | | | | | | | | 3,876 | | | | | | | | | | | | | | | 3,876 | | | | | | | | | | | | | | | 3,876 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant Liabilities | | | | 1,885 | | | | | — | | | | | (1,093) | | | | | 1h | | | | | 792 | | | | | (1,093) | | | | | 1h | | | | | 792 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Long-Term Liabilities | | | | 1,885 | | | | | 196,048 | | | | | (1,093) | | | | | | | | | | 196,840 | | | | | (1,093) | | | | | | | | | | 196,840 | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | | | $ | 3,441 | | | | $ | 415,524 | | | | $ | (1,893) | | | | | | | | | $ | 417,072 | | | | $ | (1,893) | | | | | | | | | $ | 417,072 | | |
| | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||
| | | US GAAP | | | Assuming Minimum Redemption | | | Assuming Maximum Redemption | | | |||||||||||||||||||||||||||||||||||||||||
| | | Adara | | | Alliance | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | | Pro Forma Adjustments | | | Notes | | | Pro Forma Condensed Combined | | | ||||||||||||||||||||||||||
Commitments and Contingencies | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 shares at $10.16 per share redemption value | | | | | 116,411 | | | | | | | | | | | | (116,411) | | | | | | 1b | | | | | | — | | | | | | (101,860) | | | | | | 1b | | | | | | — | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (14,551) | | | | | | 1c | | | | | | | | | | ||
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding | | | | | — | | | | | | | | | | | | — | | | | | | 1d | | | | | | — | | | | | | — | | | | | | 1d | | | | | | — | | | | ||
Class A New | | | | | | | | | | | | | | | | | — | | | | | | 1d | | | | | | 6 | | | | | | — | | | | | | 1d | | | | | | 5 | | | | ||
| | | | | | | | | | | | | | | | | 1 | | | | | | 1b | | | | | | | | | | | | — | | | | | | 1b | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | 5 | | | | | | 1e | | | | | | | | | | | | 5 | | | | | | 1e | | | | | | | | | | ||
Paid-In Capital | | | | | | | | | | | 40,000 | | | | | | (2,938) | | | | | | 1a | | | | | | 207,980 | | | | | | (2,938) | | | | | | 1a | | | | | | 110,186 | | | | ||
| | | | | | | | | | | | | | | | | 116,410 | | | | | | 1b | | | | | | | | | | | | 14,551 | | | | | | 1c | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (5) | | | | | | 1e | | | | | | | | | | | | (5) | | | | | | 1e | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (3,000) | | | | | | 1f | | | | | | | | | | | | (3,000) | | | | | | 1f | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (2,674) | | | | | | 1e | | | | | | | | | | | | (2,674) | | | | | | 1e | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | (5,065) | | | | | | 1f | | | | | | — | | | | | | (1,000) | | | | | | 1f | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | 64,159 | | | | | | 1g | | | | | | | | | | | | 64,159 | | | | | | 1g | | | | | | | | | | ||
| | | | | | | | | | | | | | | | | 1,093 | | | | | | 1h | | | | | | | | | | | | 1,093 | | | | | | 1h | | | | | | | | | | ||
Treasury stock, 57 shares carried at cost | | | | | | | | | | | (2,674) | | | | | | 2,674 | | | | | | 1e | | | | | | — | | | | | | 2,674 | | | | | | 1e | | | | | | — | | | | ||
Retained Earnings | | | | | (2,938) | | | | | | 64,159 | | | | | | 2,938 | | | | | | 1a | | | | | | — | | | | | | 2,938 | | | | | | 1a | | | | | | — | | | | ||
| | | | | | | | | | | | | | | | | (64,159) | | | | | | 1g | | | | | | | | | | | | (64,159) | | | | | | 1g | | | | | | | | | | ||
Comprehensive Income | | | | | | | | | | | (66) | | | | | | | | | | | | | | | | | | (66) | | | | | | | | | | | | | | | | | | (66) | | | | ||
Total Stockholders’ Equity | | | | | (2,938) | | | | | | 101,419 | | | | | | 109,439 | | | | | | | | | | | | 207,920 | | | | | | 11,644 | | | | | | | | | | | | 110,125 | | | | ||
Total Liabilities and Stockholders’ Equity | | | | $ | 116,914 | | | | | $ | 516,943 | | | | | $ | (8,865) | | | | | | | | | | | $ | 624,992 | | | | | $ | (106,660) | | | | | | | | | | | $ | 527,197 | | | |
| | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
| | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | | | | | | | | $ | 585,857 | | | | | | | | | | | | | | $ | 585,857 | | | | | | | | | | | | | | $ | 585,857 | | | | | | | | | | $ | 824,432 | | | | | | | | | | | | | | $ | 824,432 | | | | | | | | | | | | | | $ | 824,432 | | | ||||||||||||||||
Cost of Sales | | | | | | | | | 517,232 | | | | | | | | | | | | | | | 517,232 | | | | | | | | | | | | | | | 517,232 | | | | | | | | | | | 730,338 | | | | | | | | | | | | | | | 730,338 | | | | | | | | | | | | | | | 730,338 | | | ||||||||||||||||
Gross Margin | | | | | | | | | 68,625 | | | | | — | | | | | | | | | | 68,625 | | | | | — | | | | | | | | | | 68,625 | | | | | | | | | | | 94,094 | | | | | — | | | | | | | | | | 94,094 | | | | | — | | | | | | | | | | 94,094 | | | ||||||||||||||||
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Fulfillment Services | | | | | | | | | 31,053 | | | | | | | | | | | | | | | 31,053 | | | | | | | | | | | | | | | 31,053 | | | | | | | | | | | 45,918 | | | | | | | | | | | | | | | 45,918 | | | | | | | | | | | | | | | 45,918 | | | ||||||||||||||||
Technology | | | | | | | | | 6,444 | | | | | | | | | | | | | | | 6,444 | | | | | | | | | | | | | | | 6,444 | | | | | | | | | | | 9,614 | | | | | | | | | | | | | | | 9,614 | | | | | | | | | | | | | | | 9,614 | | | ||||||||||||||||
Sales & Marketing | | | | | | | | | 14,940 | | | | | | | | | | | | | | | 14,940 | | | | | | | | | | | | | | | 14,940 | | | | | | | | | | | 22,540 | | | | | | | | | | | | | | | 22,540 | | | | | | | | | | | | | | | 22,540 | | | ||||||||||||||||
General & Administrative | | | $ | 1,252 | | | | $ | 7,116 | | | | $ | (60) | | | | | 2a | | | | $ | 8,308 | | | | $ | (60) | | | | | 2a | | | | $ | 8,308 | | | | | $ | 1,887 | | | | $ | 11,077 | | | | $ | (90) | | | | | 2a | | | | $ | 12,874 | | | | $ | (90) | | | | | 2a | | | | $ | 12,874 | | | ||||||||||||||||
Depreciation & Amortization | | | | — | | | | | 3,885 | | | | | | | | | | | | | | | 3,885 | | | | | | | | | | | | | | | 3,885 | | | | | | — | | | | | 5,522 | | | | | | | | | | | | | | | 5,522 | | | | | | | | | | | | | | | 5,522 | | | ||||||||||||||||
Transaction Costs | | | | | | | | | 31 | | | | | | | | | | | | | | | 31 | | | | | | | | | | | | | | | 31 | | | | | | | | | | | 671 | | | | | | | | | | | | | | | 671 | | | | | | | | | | | | | | | 671 | | | ||||||||||||||||
IC DISC | | | | | | | | | 3,644 | | | | | | | | | | | | | | | 3,644 | | | | | | | | | | | | | | | 3,644 | | | | | | | | | | | 5,033 | | | | | | | | | | | | | | | 5,033 | | | | | | | | | | | | | | | 5,033 | | | ||||||||||||||||
Total Operating Expenses | | | | 1,252 | | | | | 67,113 | | | | | (60) | | | | | | | | | | 68,305 | | | | | (60) | | | | | | | | | | 68,305 | | | | | | 1,887 | | | | | 100,375 | | | | | (90) | | | | | | | | | | 102,172 | | | | | (90) | | | | | | | | | | 102,172 | | | ||||||||||||||||
Operating Income (Loss) | | | | (1,252) | | | | | 1,512 | | | | | 60 | | | | | | | | | | 320 | | | | | 60 | | | | | | | | | | 320 | | | | | | (1,887) | | | | | (6,281) | | | | | 90 | | | | | | | | | | (8,078) | | | | | 90 | | | | | | | | | | (8,078) | | |
| | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
| | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Operating Income (Expenses): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Interest | | | | | | | | | (2,320) | | | | | | | | | | | | | | | (2,320) | | | | | | | | | | | | | | | (2,320) | | | | | | | | | | | (4,674) | | | | | | | | | | | | | | | (4,674) | | | | | | | | | | | | | | | (4,674) | | | ||||||||||||||||
Interest earned on marketable securities held in Trust Account | | | | 158 | | | | | | | | | | (158) | | | | | 2b | | | | | — | | | | | (158) | | | | | 2b | | | | | — | | | | | | 671 | | | | | | | | | | (671) | | | | | 2b | | | | | — | | | | | (671) | | | | | 2b | | | | | — | | | ||||||||||||||||
Change in fair value of warrants liabilities | | | | 3,075 | | | | | | | | | | (1,783) | | | | | 2e | | | | | 1,292 | | | | | (1,783) | | | | | 2e | | | | | 1,292 | | | | | | 2,976 | | | | | | | | | | (1,726) | | | | | 2e | | | | | 1,250 | | | | | (1,726) | | | | | 2e | | | | | 1,250 | | | ||||||||||||||||
Total Non-Operating Income (Expenses) | | | | 3,233 | | | | | (2,320) | | | | | (1,941) | | | | | | | | | | (1,028) | | | | | (1,941) | | | | | | | | | | (1,028) | | | | | | 3,647 | | | | | (4,674) | | | | | (2,397) | | | | | | | | | | (3,424) | | | | | (2,397) | | | | | | | | | | (3,424) | | | ||||||||||||||||
Income before Income Taxes | | | | 1,981 | | | | | (808) | | | | | (1,881) | | | | | | | | | | (708) | | | | | (1,881) | | | | | | | | | | (708) | | | | | | 1,760 | | | | | (10,955) | | | | | (2,307) | | | | | | | | | | (11,502) | | | | | (2,307) | | | | | | | | | | (11,502) | | | ||||||||||||||||
Provision for Income Taxes | | | | | | | | | (99) | | | | | 24 | | | | | 2d | | | | | (75) | | | | | 24 | | | | | 2d | | | | | (75) | | | | | | (70) | | | | | 2,539 | | | | | 140 | | | | | 2d | | | | | 2,609 | | | | | 140 | | | | | 2d | | | | | 2,609 | | | ||||||||||||||||
Net Income (Loss) | | | $ | 1,981 | | | | $ | (907) | | | | $ | (1,857) | | | | | | | | | $ | (783) | | | | $ | (1,857) | | | | | | | | | $ | (783) | | | | | $ | 1,690 | | | | $ | (8,416) | | | | $ | (2,167) | | | | | | | | | $ | (8,893) | | | | $ | (2,167) | | | | | | | | | $ | (8,893) | | | ||||||||||||||||
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Basic shares outstanding | | | | 14,375 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,485 | | | | | | 14,375 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,474 | | | ||||||||||||||||
Diluted shares outstanding | | | | 14,375 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,485 | | | | | | 14,375 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,474 | | | ||||||||||||||||
Basic and Diluted earnings (Loss) per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Basic earnings (Loss) per share | | | $ | 0.14 | | | | $ | (1,007.78) | | | | | | | | | | | | | | $ | (0.01) | | | | | | | | | | | | | | $ | (0.02) | | | | | $ | 0.12 | | | | $ | (9,351) | | | | | | | | | | | | | | $ | (0.15) | | | | | | | | | | | | | | $ | (0.18) | | | ||||||||||||||||
Diluted earnings (Loss) per share | | | $ | 0.14 | | | | $ | (1,007.78) | | | | | | | | | | | | | | $ | (0.01) | | | | | | | | | | | | | | $ | (0.02) | | | | | $ | 0.12 | | | | $ | (9,351) | | | | | | | | | | | | | | $ | (0.15) | | | | | | | | | | | | | | $ | (0.18) | | |
| | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
| | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales | | | | | | | | $ | 1,441,762 | | | | | | | | | | | | | | $ | 1,441,762 | | | | | | | | | | | | | | $ | 1,441,762 | | | | | | | | | | $ | 1,441,762 | | | | | | | | | | | | | | $ | 1,441,762 | | | | | | | | | | | | | | $ | 1,441,762 | | | ||||||||||||||||
Cost of Sales | | | | | | | | | 1,241,650 | | | | | | | | | | | | | | | 1,241,650 | | | | | | | | | | | | | | | 1,241,650 | | | | | | | | | | | 1,241,650 | | | | | | | | | | | | | | | 1,241,650 | | | | | | | | | | | | | | | 1,241,650 | | | ||||||||||||||||
Gross Margin | | | | | | | | | 200,112 | | | | | | | | | | | | | | | 200,112 | | | | | | | | | | | | | | | 200,112 | | | | | | | | | | | 200,112 | | | | | | | | | | | | | | | 200,112 | | | | | | | | | | | | | | | 200,112 | | | ||||||||||||||||
Operating Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Fulfillment Services | | | | | | | | | 60,682 | | | | | | | | | | | | | | | 60,682 | | | | | | | | | | | | | | | 60,682 | | | | | | | | | | | 60,682 | | | | | | | | | | | | | | | 60,682 | | | | | | | | | | | | | | | 60,682 | | | ||||||||||||||||
Technology | | | | | | | | | 12,772 | | | | | | | | | | | | | | | 12,772 | | | | | | | | | | | | | | | 12,772 | | | | | | | | | | | 12,772 | | | | | | | | | | | | | | | 12,772 | | | | | | | | | | | | | | | 12,772 | | | ||||||||||||||||
Sales & Marketing | | | | | | | | | 29,845 | | | | | | | | | | | | | | | 29,845 | | | | | | | | | | | | | | | 29,845 | | | | | | | | | | | 29,845 | | | | | | | | | | | | | | | 29,845 | | | | | | | | | | | | | | | 29,845 | | | ||||||||||||||||
General & Administrative | | | | 977 | | | | | 16,655 | | | | | (105) | | | | | 2a | | | | | 17,527 | | | | | (105) | | | | | 2a | | | | | 17,527 | | | | | | 977 | | | | | 16,655 | | | | | (105) | | | | | 2a | | | | | 17,527 | | | | | (105) | | | | | 2a | | | | | 17,527 | | | ||||||||||||||||
Depreciation & Amortization | | | | | | | | | 9,910 | | | | | — | | | | | | | | | | 9,910 | | | | | | | | | | | | | | | 9,910 | | | | | | | | | | | 9,910 | | | | | — | | | | | | | | | | 9,910 | | | | | | | | | | | | | | | 9,910 | | | ||||||||||||||||
Transaction costs | | | | 86 | | | | | (282) | | | | | 5,565 | | | | | 2c | | | | | 5,369 | | | | | 1,500 | | | | | 2c | | | | | 1,304 | | | | | | 86 | | | | | (282) | | | | | 5,065 | | | | | 2c | | | | | 4,869 | | | | | 1,000 | | | | | 2c | | | | | 804 | | | ||||||||||||||||
IC DISC | | | | | | | | | 8,589 | | | | | | | | | | | | | | | 8,589 | | | | | | | | | | | | | | | 8,589 | | | | | | | | | | | 8,589 | | | | | | | | | | | | | | | 8,589 | | | | | | | | | | | | | | | 8,589 | | | ||||||||||||||||
Total Operating Expenses | | | | 1,063 | | | | | 138,171 | | | | | 5,460 | | | | | | | | | | 144,694 | | | | | 1,395 | | | | | | | | | | 140,629 | | | | | | 1,063 | | | | | 138,171 | | | | | 4,960 | | | | | | | | | | 144,194 | | | | | 895 | | | | | | | | | | 140,129 | | | ||||||||||||||||
Income from Operations | | | | (1,063) | | | | | 61,941 | | | | | (5,460) | | | | | | | | | | 55,418 | | | | | (1,395) | | | | | | | | | | 59,483 | | | | | | (1,063) | | | | | 61,941 | | | | | (4,960) | | | | | | | | | | 55,918 | | | | | (895) | | | | | | | | | | 59,983 | | |
| | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Historical | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||||||||||||
| | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | | US GAAP | | Assuming Minimum Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | | Adara | | Alliance | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | Pro Forma Adjustments | | Notes | | Pro Forma Condensed Combined | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non Operating Income (Expenses): | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Gain\loss on Disposal of PPE | | | | | | | | | (47) | | | | | | | | | | | | | | | (47) | | | | | | | | | | | | | | | (47) | | | | | | | | | | | (47) | | | | | | | | | | | | | | | (47) | | | | | | | | | | | | | | | (47) | | | ||||||||||||||||
Interest | | | | | | | | | (3,237) | | | | | | | | | | | | | | | (3,237) | | | | | | | | | | | | | | | (3,237) | | | | | | | | | | | (3,237) | | | | | | | | | | | | | | | (3,237) | | | | | | | | | | | | | | | (3,237) | | | ||||||||||||||||
Interest earned on marketable securities held in Trust Account | | | | 10 | | | | | — | | | | | (10) | | | | | 2b | | | | | — | | | | | (10) | | | | | 2b | | | | | — | | | | | | 10 | | | | | — | | | | | (10) | | | | | 2b | | | | | — | | | | | (10) | | | | | 2b | | | | | — | | | ||||||||||||||||
Change in fair value of warrants liabilities | | | | 4,297 | | | | | — | | | | | (2,490) | | | | | 2e | | | | | 1,807 | | | | | (2,490) | | | | | 2e | | | | | 1,807 | | | | | | 4,297 | | | | | — | | | | | (2,490) | | | | | 2e | | | | | 1,807 | | | | | (2,490) | | | | | 2e | | | | | 1,807 | | | ||||||||||||||||
Total Non Operating Income (Expenses) | | | | 4,307 | | | | | (3,284) | | | | | (2,500) | | | | | | | | | | (1,477) | | | | | (2,500) | | | | | | | | | | (1,477) | | | | | | 4,307 | | | | | (3,284) | | | | | (2,500) | | | | | | | | | | (1,477) | | | | | (2,500) | | | | | | | | | | (1,477) | | | ||||||||||||||||
Income before Income Taxes | | | | 3,244 | | | | | 58,657 | | | | | (7,960) | | | | | | | | | | 53,941 | | | | | (3,895) | | | | | | | | | | 58,006 | | | | | | 3,244 | | | | | 58,657 | | | | | (7,460) | | | | | | | | | | 54,441 | | | | | (3,395) | | | | | | | | | | 58,506 | | | ||||||||||||||||
Provision for Income Taxes | | | | | | | | | (14,076) | | | | | 1,313 | | | | | 2d | | | | | (12,763) | | | | | 337 | | | | | 2d | | | | | (13,739) | | | | | | | | | | | (14,076) | | | | | 1,192 | | | | | 2d | | | | | 12,884 | | | | | 217 | | | | | 2d | | | | | (13,859) | | | ||||||||||||||||
Net Income | | | $ | 3,244 | | | | $ | 44,581 | | | | $ | (6,647) | | | | | | | | | $ | 41,178 | | | | $ | (3,558) | | | | | | | | | $ | 44,267 | | | | | $ | 3,244 | | | | $ | 44,581 | | | | $ | (6,268) | | | | | | | | | $ | 41,557 | | | | $ | (3,178) | | | | | | | | | $ | 44,647 | | | ||||||||||||||||
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Weighted average shares outstanding: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||
Basic shares outstanding | | | | 13,040 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,485 | | | | | | 13,040 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,474 | | | ||||||||||||||||
Diluted shares outstanding | | | | 13,040 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,485 | | | | | | 13,040 | | | | | 1 | | | | | | | | | | | | | | | 61,000 | | | | | | | | | | | | | | | 50,474 | | | ||||||||||||||||
Basic and Diluted earnings per share: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | �� | | | | | | |||||||||||||||
Basic earnings per share | | | $ | 0.25 | | | | $ | 49,534.44 | | | | | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | $ | 0.88 | | | | | $ | 0.25 | | | | $ | 49,534.44 | | | | | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | $ | 0.88 | | | ||||||||||||||||
Diluted earnings per share | | | $ | 0.25 | | | | $ | 49,534.44 | | | | | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | $ | 0.88 | | | | | $ | 0.25 | | | | $ | 49,534.44 | | | | | | | | | | | | | | $ | 0.68 | | | | | | | | | | | | | | $ | 0.88 | | |
| | Tranche 1 | | Tranche 2 | | Tranche 3 | | | Tranche 1 | | Tranche 2 | | Tranche 3 | | ||||||||||||||||||||||||
Common stock value | | | $ | 9.89 | | | | $ | 9.89 | | | | $ | 9.89 | | | | | $ | 9.95 | | | | $ | 9.95 | | | | $ | 9.95 | | | ||||||
Exercise price | | | $ | 0.00 | | | | $ | 0.00 | | | | $ | 0.00 | | | | | $ | 0.00 | | | | $ | 0.00 | | | | $ | 0.00 | | | ||||||
Contractual stock price threshold | | | $ | 20.00 | | | | $ | 30.00 | | | | $ | 50.00 | | | | | $ | 20.00 | | | | $ | 30.00 | | | | $ | 50.00 | | | ||||||
One-touch barrier | | | $ | 21.95 | | | | $ | 32.92 | | | | $ | 54.86 | | | | | $ | 22.12 | | | | $ | 33.23 | | | | $ | 55.34 | | | ||||||
Expiration date | | | | 6/30/2027 | | | | | 6/30/2029 | | | | | 6/29/2032 | | | | | | 6/30/2027 | | | | | 6/30/2029 | | | | | 6/29/2032 | | | ||||||
Expected item | | | | 5.00 | | | | | 7.00 | | | | | 10.00 | | | | | | 5.00 | | | | | 7.00 | | | | | 10.00 | | | ||||||
Risk-free rate | | | | 2.99% | | | | | 3.01% | | | | | 2.96% | | | | | | 4.02% | | | | | 3.93% | | | | | 3.79% | | | ||||||
Dividend | | | | 0.00% | | | | | 0.00% | | | | | 0.00% | | | | | | 0.00% | | | | | 0.00% | | | | | 0.00% | | | ||||||
Volatility | | | | 34.8% | | | | | 34.8% | | | | | 34.8% | | | | | | 37.8% | | | | | 37.8% | | | | | 37.8% | | | ||||||
Value of an up-and-in barrier option | | | $ | 5.01 | | | | $ | 4.03 | | | | $ | 3.37 | | | | | $ | 5.74 | | | | $ | 4.85 | | | | $ | 4.29 | | | ||||||
Fair value per share | | | $ | 5.01 | | | | $ | 4.03 | | | | $ | 3.37 | | | | | $ | 5.74 | | | | $ | 4.85 | | | | $ | 4.29 | | |
| | | For the six months ended June 30, 2022 | | |||||||||
| | | Minimum Redemption Scenario | | | Maximum Redemption Scenario | | ||||||
Pro forma net Loss attributable to common stockholders | | | | $ | (783,000) | | | | | $ | (783,000) | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | | | | | | | |
Adara Class A common stockholders (Public Shareholders) | | | | | 11,500,000 | | | | | | 1,485,149 | | |
Adara Class B common stockholders (Sponsor) | | | | | 2,000,000 | | | | | | 1,500,000 | | |
Former Alliance stockholders | | | | | 47,500,000 | | | | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1) | | | | | 61,000,000 | | | | | | 50,485,149 | | |
Net income per share – basic and diluted(1) | | | | $ | (0.01) | | | | | $ | (0.02) | | |
| | | For the year ended December 31, 2021 | | |||||||||
| | | Minimum Redemption Scenario | | | Maximum Redemption Scenario | | ||||||
Pro forma net income attributable to common stockholders | | | | $ | 41,178,000 | | | | | $ | 44,267,000 | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | | | | | | | |
Adara Class A common stockholders (Public Shareholders) | | | | | 11,500,000 | | | | | | 1,485,149 | | |
Adara Class B common stockholders (Sponsor) | | | | | 2,000,000 | | | | | | 1,500,000 | | |
Former Alliance stockholders | | | | | 47,500,000 | | | | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1) | | | | | 61,000,000 | | | | | | 50,485,149 | | |
Net income per share – basic and diluted(1) | | | | $ | 0.68 | | | | | $ | 0.88 | | |
| | | For the nine months ended September 30, 2022 | | |||||||||
| | | Minimum Redemption Scenario | | | Maximum Redemption Scenario | | ||||||
Pro forma net Loss attributable to common stockholders | | | | $ | (8,893,000) | | | | | $ | (8,893,000) | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | | | | | | | |
Adara Class A common stockholders (Public Shareholders) | | | | | 11,500,000 | | | | | | 1,473,587 | | |
Adara Class B common stockholders (Sponsor) | | | | | 2,000,000 | | | | | | 1,500,000 | | |
Former Alliance stockholders | | | | | 47,500,000 | | | | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1) | | | | | 61,000,000 | | | | | | 50,473,587 | | |
Net loss per share – basic and diluted(1) | | | | $ | (0.15) | | | | | $ | (0.18) | | |
| | | For the year ended December 31, 2021 | | |||||||||
| | | Minimum Redemption Scenario | | | Maximum Redemption Scenario | | ||||||
Pro forma net income attributable to common stockholders | | | | $ | 41,557,000 | | | | | $ | 44,647,000 | | |
Pro forma weighted average shares calculation, basic and diluted: | | | | | | | | | | | | | |
Adara Class A common stockholders (Public Shareholders) | | | | | 11,500,000 | | | | | | 1,473,587 | | |
Adara Class B common stockholders (Sponsor) | | | | | 2,000,000 | | | | | | 1,500,000 | | |
Former Alliance stockholders | | | | | 47,500,000 | | | | | | 47,500,000 | | |
Pro forma weighted average shares outstanding – basic and diluted(1) | | | | | 61,000,000 | | | | | | 50,473,587 | | |
Net income per share – basic and diluted(1) | | | | $ | 0.68 | | | | | $ | 0.88 | | |
Company | | | Stock Price(1) | | | Market Value of Equity | | | Enterprise Value(2) | | | Enterprise Value as a Multiple of: | | ||||||||||||||||||||||||||||||
| EBITDA | | |||||||||||||||||||||||||||||||||||||||||
| TTM | | | CY 2022E | | | CY2023E | | | CY2024E | | ||||||||||||||||||||||||||||||||
Aterian, Inc. | | | | | 2.59 | | | | | | 174.7 | | | | | | 164.6 | | | | | | NM | | | | | | NM | | | | | | NM | | | | | | 15.3x | | |
ChannelAdvisor Corporation | | | | | 14.76 | | | | | | 449.8 | | | | | | 347.4 | | | | | | 16.4 | | | | | | 9.3 | | | | | | 8.1 | | | | | | 7.1 | | |
Funko, Inc. | | | | | 20.66 | | | | | | 960.2 | | | | | | 1,267.3 | | | | | | 9.1 | | | | | | 6.9 | | | | | | 6.1 | | | | | | 6.7 | | |
Arrow Electronics, Inc. | | | | | 109.30 | | | | | | 7,217.8 | | | | | | 10,142.2 | | | | | | 5.2 | | | | | | 4.4 | | | | | | 4.8 | | | | | | 5.7 | | |
TD SYNNEX Corporation | | | | | 93.00 | | | | | | 8,937.7 | | | | | | 13,501.0 | | | | | | 11.2 | | | | | | 7.2 | | | | | | 6.7 | | | | | | 6.1 | | |
Advantage Solutions Inc. | | | | | 4.12 | | | | | | 1,311.8 | | | | | | 3,294.6 | | | | | | 6.6 | | | | | | 6.8 | | | | | | 6.6 | | | | | | 6.7 | | |
GameStop Corp. | | | | | 140.28 | | | | | | 10,624.8 | | | | | | 10,206.8 | | | | | | NM | | | | | | NM | | | | | | NM | | | | | | NM | | |
| High | | | | | 16.4x | | | | | | 9.3x | | | | | | 8.1x | | | | | | 15.3x | | |
| Average | | | | | 9.7 | | | | | | 6.9 | | | | | | 6.5 | | | | | | 7.9 | | |
| Median | | | | | 9.1 | | | | | | 6.9 | | | | | | 6.6 | | | | | | 6.7 | | |
| Low | | | | | 5.2 | | | | | | 4.4 | | | | | | 4.8 | | | | | | 5.7 | | |
| | | EV/EBITDA TTM | | | EV/EBITDA 2022 | | | EV/EBITDA 2023 | | | EV/EBITDA 2024 | | ||||||||||||
Enterprise Value (Low) | | | | $ | 397,068,456 | | | | | $ | 283,551,459 | | | | | $ | 333,314,352 | | | | | $ | 394,673,812 | | |
Enterprise Value (Mean) | | | | $ | 737,631,016 | | | | | $ | 443,261,568 | | | | | $ | 448,155,912 | | | | | $ | 547,662,808 | | |
Enterprise Value (Median) | | | | $ | 687,233,866 | | | | | $ | 439,343,317 | | | | | $ | 458,525,128 | | | | | $ | 462,291,372 | | |
Enterprise Value (High) | | | | $ | 1,237,020,958 | | | | | $ | 589,704,646 | | | | | $ | 556,949,521 | | | | | $ | 1,053,252,376 | | |
| | | Historical Year Ending 6/30 | | | Projected Year Ending 6/30* | | | 2021-2026 CAGR | | |||||||||||||||||||||||||||||||||||||||||||||
| | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | 2023 | | | 2024 | | | 2025 | | | 2026 | | ||||||||||||||||||||||||||||||
Sales | | | | | 746.5 | | | | | | 775.6 | | | | | | 1,323.6 | | | | | | 1,400.0 | | | | | | 1,424.0 | | | | | | 1,450.0 | | | | | | 1,479.0 | | | | | | 1,508.6 | | | | | | 2.7% | | |
Cost of goods sold | | | | | 637.9 | | | | | | 656.5 | | | | | | 1,140.9 | | | | | | 1,213.0 | | | | | | 1,227.3 | | | | | | 1,250.0 | | | | | | 1,276.4 | | | | | | 1,301.9 | | | | | | | | |
Gross Profit | | | | | 108.6 | | | | | | 119.1 | | | | | | 182.7 | | | | | | 187.0 | | | | | | 196.7 | | | | | | 200.0 | | | | | | 202.6 | | | | | | 206.7 | | | | | | 2.5% | | |
Operating Expenses | | | | | 83.6 | | | | | | 85.9 | | | | | | 114.1 | | | | | | 122.6 | | | | | | 127.1 | | | | | | 131.2 | | | | | | 131.6 | | | | | | 134.3 | | | | | | | | |
EBITDA | | | | | 25.9 | | | | | | 33.6 | | | | | | 68.5 | | | | | | 64.4 | | | | | | 69.6 | | | | | | 69.1 | | | | | | 72.5 | | | | | | 73.9 | | | | | | 1.5% | | |
EBITDA Margin | | | | | 3.5% | | | | | | 4.3% | | | | | | 5.2% | | | | | | 4.6% | | | | | | 4.9% | | | | | | 4.8% | | | | | | 4.9% | | | | | | 4.9% | | | | | | | | |
Less: Depreciation | | | | | (6.2) | | | | | | (7.1) | | | | | | (5.6) | | | | | | (3.2) | | | | | | (4.0) | | | | | | (4.1) | | | | | | (4.0) | | | | | | (4.0) | | | | | | | | |
Less: Amortization | | | | | (7.9) | | | | | | (8.7) | | | | | | (6.0) | | | | | | (5.2) | | | | | | (3.5) | | | | | | (3.5) | | | | | | (3.5) | | | | | | (3.5) | | | | | | | | |
EBIT | | | | | 11.8 | | | | | | 17.8 | | | | | | 56.9 | | | | | | 56.0 | | | | | | 62.1 | | | | | | 61.5 | | | | | | 65.0 | | | | | | 66.4 | | | | | | 3.1% | | |
Less: Taxes | | | | | (1.7) | | | | | | (0.4) | | | | | | (10.9) | | | | | | (10.0) | | | | | | (13.3) | | | | | | (14.0) | | | | | | (14.2) | | | | | | (14.5) | | | | | | | | |
Tax-effected EBIT | | | | | 10.1 | | | | | | 17.4 | | | | | | 46.0 | | | | | | 46.0 | | | | | | 48.8 | | | | | | 47.5 | | | | | | 50.8 | | | | | | 51.9 | | | | | | 2.5% | | |
| | | | | | | | | | | | | | | | | | | | | | | -17.9% | | | | | | -21.4% | | | | | | | | | | | | | | | | | | | | | | | | | | |
Plus: Depreciation and amortization | | | | | | | | | | | 15.8 | | | | | | 11.6 | | | | | | 8.4 | | | | | | 7.5 | | | | | | 7.6 | | | | | | 7.5 | | | | | | 7.5 | | | | | | | | |
Less: Capital expenditures | | | | | | | | | | | (1.6) | | | | | | (0.7) | | | | | | (0.2) | | | | | | (1.0) | | | | | | (1.0) | | | | | | (1.0) | | | | | | (1.0) | | | | | | | | |
(Increase)/decrease in working capital | | | | | | | | | | | (18.0) | | | | | | (35.3) | | | | | | (34.8) | | | | | | (38.0) | | | | | | 0.0 | | | | | | 0.0 | | | | | | 0.0 | | | | | | | | |
Unlevered Free Cash Flow | | | | | | | | | | | 13.6 | | | | | | 21.7 | | | | | | 19.2 | | | | | | 17.1 | | | | | | 54.1 | | | | | | 57.3 | | | | | | 58.4 | | | | | | 22.0% | | |
| Unlevered Free Cash Flow | | | | | 19.2 | | | | | | 17.1 | | | | | | 54.1 | | | | | | 57.3 | | | | | | 58.4 | | |
| Discount period | | | | | 1.0 | | | | | | 2.0 | | | | | | 3.0 | | | | | | 4.0 | | | | | | 5.0 | | |
| WACC | | | | | 10.0% | | | | | | 10.0% | | | | | | 10.0% | | | | | | 10.0% | | | | | | 10.0% | | |
| Discount factor | | | | | 0.909 | | | | | | 0.826 | | | | | | 0.751 | | | | | | 0.683 | | | | | | 0.621 | | |
| Present value of each Unlevered Free Cash Flow | | | | | 17.5 | | | | | | 14.1 | | | | | | 40.6 | | | | | | 39.1 | | | | | | 36.3 | | |
| Perpetuity Growth Rate Method | | ||||||
| Weighted average cost of capital: | | | | | 10.0% | | |
| Net present value of free cash flow | | | | | 147.6 | | |
| Terminal growth rate | | | | | 2.0% | | |
| Terminal value | | | | | 744.9 | | |
| Present value of the terminal value | | | | | 462.5 | | |
| Enterprise value | | | | | 610.1 | | |
| Perpetuity Growth Rate Method | | ||||||
| Less: Net debt** | | | | | (135.5) | | |
| Equity value | | | | | 474.6 | | |
| Shares: | | | | | 47.500 | | |
| Equity Value Per Share | | | | | 9.99 | | |
Name and Position | | | Year | | | Salary | | | Bonus | | | All Other Compensation(1)(2) | | | Total Compensation | | |||||||||||||||
Jeffrey Walker Chief Executive Officer | | | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 77,243 | | | | | $ | 877,243 | | |
Bruce Ogilvie Executive Chairman | | | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 78,535 | | | | | $ | 878,535 | | |
John Kutch Chief Financial Officer | | | | | 2021 | | | | | $ | 275,000 | | | | | $ | 68,750 | | | | | $ | 11,855 | | | | | $ | 355,605 | | |
Paul Eibeler Board Chairman, COKeM | | | | | 2021 | | | | | $ | 292,000 | | | | | $ | 29,200 | | | | | $ | 14,572 | | | | | $ | 335,772 | | |
Ben Means President, Distribution Solutions | | | | | 2021 | | | | | $ | 335,000 | | | | | $ | 50,250 | | | | | $ | 14,571 | | | | | $ | 399,821 | | |
Name | | | Year | | | 401(K) Matching Plan Contributions | | | Car Allowance | | | Mobile Phone Allowance & Benefits | | | Work From Home Allowance | | | Life and AD&D Insurance | | | Company Paid Health & Welfare Benefits | | | Company Paid Disability Insurance | | | Travel Expenses | | |||||||||||||||||||||||||||
Jeffrey Walker | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 36,273 | | |
Bruce Ogilvie | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 9,203 | | | | | $ | 365 | | | | | $ | 36,273 | | |
John Kutch | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 1,440 | | | | | $ | 0 | | | | | $ | 374 | | | | | $ | 4,676 | | | | | $ | 365 | | | | | $ | 0 | | |
Paul Eibeler | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 396 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 0 | | |
Ben Means | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 456 | | | | | $ | 7,850 | | | | | $ | 365 | | | | | $ | 0 | | |
Name | | | Fees earned or paid in cash ($) | | | Stock-based awards ($)(1) | | | Total ($) | | ||||||
Alan Tuchman (former director, resigned on August 13th, 2022) | | | | $ | 136,000 | | | | | | | | $ | 136,000 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Net Revenues | | | | $ | 238,701 | | | | | $ | 293,202 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 213,233 | | | | | | 252,483 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 14,865 | | | | | | 13,260 | | |
Selling, General and Administrative Expense | | | | | 14,731 | | | | | | 13,778 | | |
Depreciation and Amortization | | | | | 1,636 | | | | | | 2,309 | | |
Transaction Costs | | | | | 640 | | | | | | (316) | | |
IC DISC Commissions | | | | | 1,389 | | | | | | 3,496 | | |
Total Operating Expenses | | | | | 33,261 | | | | | | 32,527 | | |
Operating (Loss) Income | | | | | (7,793) | | | | | | 8,192 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,354 | | | | | | 728 | | |
Total Other Expenses | | | | | 2,354 | | | | | | 728 | | |
(Loss) Income Before Income Tax (Benefit) Expense | | | | | (10,147) | | | | | | 7,464 | | |
Income Tax (Benefit) Expense | | | | | (2,638) | | | | | | 1,791 | | |
Net (Loss) Income | | | | | (7,509) | | | | | | 5,673 | | |
Net (Loss) Income per Share – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 6.30 | | |
Shares Used in Computing Net (Loss) Income per Share | | | | | 900 | | | | | | 900 | | |
($ in thousands, except shares) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | ||||||
Net Revenues | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,234,995 | | | | | | 1,140,885 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 64,260 | | | | | | 56,885 | | |
Selling, General and Administrative Expense | | | | | 58,110 | | | | | | 57,250 | | |
Depreciation and Amortization | | | | | 8,259 | | | | | | 11,651 | | |
Transaction Costs | | | | | (251) | | | | | | 3,509 | | |
IC DISC Commissions | | | | | 9,907 | | | | | | 5,394 | | |
Loss on Disposal of Property and Equipment | | | | | — | | | | | | 87 | | |
Total Operating Expenses | | | | | 140,285 | | | | | | 134,775 | | |
Operating Income | | | | | 42,098 | | | | | | 47,907 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 4,056 | | | | | | 2,938 | | |
Total Other Expenses | | | | | 4,056 | | | | | | 2,938 | | |
Income Before Provision for Income Tax Expense | | | | | 38,042 | | | | | | 44,969 | | |
Income Tax Expense | | | | | 9,423 | | | | | | 10,791 | | |
Net Income | | | | | 28,619 | | | | | | 34,178 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 7 | | | | | | 15 | | |
Total Comprehensive Income | | | | $ | 28,626 | | | | | $ | 34,193 | | |
Net Income per Share – Basic and Diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share | | | | $ | — | | | | | $ | 7.57 | | |
| | | June 30, 2022 | | | June 30, 2021 | | ||||||
Provision for Income Taxes | | | | $ | 9,423 | | | | | $ | 10,791 | | |
Effective Tax Rate | | | | | 25% | | | | | | 24% | | |
Statutory Federal Income Tax Rate | | | | | 21% | | | | | | 21% | | |
($ in thousands, except shares) | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | ||||||
Net Revenues | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense | | | | | 57,250 | | | | | | 50,007 | | |
Depreciation and Amortization | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment | | | | | 87 | | | | | | — | | |
Total Operating Expenses | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense | | | | | 10,791 | | | | | | 376 | | |
Net Income | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income | | | | $ | 34,193 | | | | | $ | 5,043 | | |
Net Income per Share – Basic and Diluted | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share | | | | $ | 7.57 | | | | | $ | — | | |
| | | June 30, 2021 | | | June 30, 2020 | | ||||||
Provision for Income Taxes | | | | $ | 10,791 | | | | | $ | 376 | | |
Effective Tax Rate | | | | | 24% | | | | | | 7% | | |
Statutory Federal Income Tax Rate | | | | | 21% | | | | | | 21% | | |
| | Year Ended June 30 | | | September 30 | | June 30 | | ||||||||||||||||||||||||||||||||||||||||||
(in millions) | | 2022 | | 2021 | | 2020 | | | 2022 | | 2021 | | 2022 | | 2021 | | 2020 | | ||||||||||||||||||||||||||||||||
Revolver Balance | | | $ | 136 | | | | $ | 54 | | | | $ | 46 | | | | | $ | 184 | | | | $ | 126 | | | | $ | 136 | | | | $ | 54 | | | | $ | 46 | | | ||||||||
Availability | | | | 48 | | | | | 95 | | | | | 40 | | | | | | 8 | | | | | 49 | | | | | 48 | | | | | 95 | | | | | 40 | | |
| | | Year Ended June 30 | | |||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Net Income | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,362 | | |
Net Cash Provided by (Used In) Operating Activities | | | | | (83,554) | | | | | | 74,716 | | | | | | 27,390 | | |
Investing Activities | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Financing Activities | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
| | | Three Months Ended September 30 | | | Year Ended June 30 | | ||||||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | |||||||||||||||
Net Income (Loss). | | | | $ | (7,509) | | | | | $ | 5,673 | | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,362 | | |
Net Cash Provided by (Used In) Operating Activities. | | | | | (48,176) | | | | | | (69,879) | | | | | | (83,554) | | | | | | 74,716 | | | | | | 27,390 | | |
Investing Activities | | | | | 1 | | | | | | — | | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Financing Activities | | | | | 47,515 | | | | | | 68,296 | | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Name | | | Age | | | Position | |
Thomas Finke | | | 57 | | | Chairman and Chief Executive Officer | |
Paul G. Porter | | | 57 | | | Chief Financial Officer | |
W. Tom Donaldson III | | | 44 | | | Director | |
Frank Quintero | | | 50 | | | Director | |
Dylan Glenn | | | 52 | | | Director | |
Beatriz Acevedo-Greiff | | | 53 | | | Director | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
Thomas Finke | | | Invesco Ltd. | | | Investment management | | | Director | |
W. Tom Donaldson III | | | Blystone & Donaldson, LLC Legion Brewing Holdings LLC | | | Private investment Alcohol beverage manufacturer | | | Managing Partner Director | |
| Group G Holdings LLC | | | Electric lawn mowers | | | Director | | ||
Frank Quintero | | | Yucaipa Companies, LLC BioSig Technologies Inc Independent Sport & Entertainment | | | Private investment Medical technology Sports agency | | | Principal Advisory Board Member Director | |
Dylan Glen | | | KBBO Americas, L.P. Intellicheck, Inc. | | | Private investment Authentication services in the financial industry | | | Chief Executive Officer Director | |
| Guggenheim Partners American Action Network Episcopal High School Davidson College | | | Private investment Issue advocacy Private school Private college | | | Senior Managing Director Director Trustee Trustee | | ||
Beatriz Acevedo-Greiff | | | Suma Wealth 9th Wonder Agency Acevedo Foundation PocketWatch Silicon Valley Bank Beneficial State Bank | | | Fin-tech Marketing agency Latino advocacy Digital media Banking Banking | | | Founding Partner Partner and Board Member Founding Partner Director Board advisor | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
| | | Delta Air Lines | | | Airline | | | Director Board Advisor | |
Martin A. Sumichrast | | | cbdMD, Inc. Washington Capital, LLC SFT1, LLC Stone Street Capital, LLC Barings Global Short Duration High Yield Fund, Inc | | | Production and sales of consumer CBD products Private investment Private investment Private investment Private investment | | | Chairman and Co-Chief Executive Officer Managing Director Managing Director Managing Member Trustee and Chairman of the Nominating and Governance Committees | |
| Barings Capital Funds Trust, Inc | | | Private investment | | | Trustee and Chairman of the Nominating and Governance Committees | |
Name and Position | | | Year | | | Salary | | | Bonus | | | All Other Compensation(1)(2) | | | Total Compensation | | |||||||||||||||
Jeffrey Walker Chief Executive Officer | | | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 77,243 | | | | | $ | 877,243 | | |
Bruce Ogilvie Executive Chairman | | | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 78,535 | | | | | $ | 878,535 | | |
John Kutch Chief Financial Officer | | | | | 2021 | | | | | $ | 275,000 | | | | | $ | 68,750 | | | | | $ | 11,855 | | | | | $ | 355,605 | | |
Paul Eibeler Board Chairman, COKeM | | | | | 2021 | | | | | $ | 292,000 | | | | | $ | 29,200 | | | | | $ | 14,572 | | | | | $ | 335,772 | | |
Ben Means President, Distribution Solutions | | | | | 2021 | | | | | $ | 335,000 | | | | | $ | 50,250 | | | | | $ | 14,571 | | | | | $ | 399,821 | | |
Name | | | Year | | | 401(K) Matching Plan Contributions | | | Car Allowance | | | Mobile Phone Allowance & Benefits | | | Work From Home Allowance | | | Life and AD&D Insurance | | | Company Paid Health & Welfare Benefits | | | Company Paid Disability Insurance | | | Travel Expenses | | |||||||||||||||||||||||||||
Jeffrey Walker | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 36,273 | | |
Bruce Ogilvie | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 9,203 | | | | | $ | 365 | | | | | $ | 36,273 | | |
John Kutch | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 1,440 | | | | | $ | 0 | | | | | $ | 374 | | | | | $ | 4,676 | | | | | $ | 365 | | | | | $ | 0 | | |
Paul Eibeler | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 396 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 0 | | |
Ben Means | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 456 | | | | | $ | 7,850 | | | | | $ | 365 | | | | | $ | 0 | | |
Name | | | Fees earned or paid in cash ($) | | | Stock-based awards ($)(1) | | | Total ($) | | ||||||
Alan Tuchman (former director, resigned on August 13th, 2022) | | | | $ | 136,000 | | | | | | | | $ | 136,000 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Net Revenues | | | | $ | 238,701 | | | | | $ | 293,202 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 213,233 | | | | | | 252,483 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 14,865 | | | | | | 13,260 | | |
Selling, General and Administrative Expense | | | | | 14,731 | | | | | | 13,778 | | |
Depreciation and Amortization | | | | | 1,636 | | | | | | 2,309 | | |
Transaction Costs | | | | | 640 | | | | | | (316) | | |
IC DISC Commissions | | | | | 1,389 | | | | | | 3,496 | | |
Total Operating Expenses | | | | | 33,261 | | | | | | 32,527 | | |
Operating (Loss) Income | | | | | (7,793) | | | | | | 8,192 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,354 | | | | | | 728 | | |
Total Other Expenses | | | | | 2,354 | | | | | | 728 | | |
(Loss) Income Before Income Tax (Benefit) Expense | | | | | (10,147) | | | | | | 7,464 | | |
Income Tax (Benefit) Expense | | | | | (2,638) | | | | | | 1,791 | | |
Net (Loss) Income | | | | | (7,509) | | | | | | 5,673 | | |
Net (Loss) Income per Share – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 6.30 | | |
Shares Used in Computing Net (Loss) Income per Share | | | | | 900 | | | | | | 900 | | |
($ in thousands, except shares) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | ||||||
Net Revenues | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,234,995 | | | | | | 1,140,885 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 64,260 | | | | | | 56,885 | | |
Selling, General and Administrative Expense | | | | | 58,110 | | | | | | 57,250 | | |
Depreciation and Amortization | | | | | 8,259 | | | | | | 11,651 | | |
Transaction Costs | | | | | (251) | | | | | | 3,509 | | |
IC DISC Commissions | | | | | 9,907 | | | | | | 5,394 | | |
Loss on Disposal of Property and Equipment | | | | | — | | | | | | 87 | | |
Total Operating Expenses | | | | | 140,285 | | | | | | 134,775 | | |
Operating Income | | | | | 42,098 | | | | | | 47,907 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 4,056 | | | | | | 2,938 | | |
Total Other Expenses | | | | | 4,056 | | | | | | 2,938 | | |
Income Before Provision for Income Tax Expense | | | | | 38,042 | | | | | | 44,969 | | |
Income Tax Expense | | | | | 9,423 | | | | | | 10,791 | | |
Net Income | | | | | 28,619 | | | | | | 34,178 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 7 | | | | | | 15 | | |
Total Comprehensive Income | | | | $ | 28,626 | | | | | $ | 34,193 | | |
Net Income per Share – Basic and Diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share | | | | $ | — | | | | | $ | 7.57 | | |
| | | June 30, 2022 | | | June 30, 2021 | | ||||||
Provision for Income Taxes | | | | $ | 9,423 | | | | | $ | 10,791 | | |
Effective Tax Rate | | | | | 25% | | | | | | 24% | | |
Statutory Federal Income Tax Rate | | | | | 21% | | | | | | 21% | | |
($ in thousands, except shares) | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | ||||||
Net Revenues | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense | | | | | 57,250 | | | | | | 50,007 | | |
Depreciation and Amortization | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment | | | | | 87 | | | | | | — | | |
Total Operating Expenses | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense | | | | | 10,791 | | | | | | 376 | | |
Net Income | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income | | | | $ | 34,193 | | | | | $ | 5,043 | | |
Net Income per Share – Basic and Diluted | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share | | | | $ | 7.57 | | | | | $ | — | | |
| | | June 30, 2021 | | | June 30, 2020 | | ||||||
Provision for Income Taxes | | | | $ | 10,791 | | | | | $ | 376 | | |
Effective Tax Rate | | | | | 24% | | | | | | 7% | | |
Statutory Federal Income Tax Rate | | | | | 21% | | | | | | 21% | | |
| | | September 30 | | | June 30 | | ||||||||||||||||||||||||
(in millions) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | |||||||||||||||
Revolver Balance | | | | $ | 184 | | | | | $ | 126 | | | | | $ | 136 | | | | | $ | 54 | | | | | $ | 46 | | |
Availability | | | | | 8 | | | | | | 49 | | | | | | 48 | | | | | | 95 | | | | | | 40 | | |
| | | Three Months Ended September 30 | | | Year Ended June 30 | | ||||||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | |||||||||||||||
Net Income (Loss). | | | | $ | (7,509) | | | | | $ | 5,673 | | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,362 | | |
Net Cash Provided by (Used In) Operating Activities. | | | | | (48,176) | | | | | | (69,879) | | | | | | (83,554) | | | | | | 74,716 | | | | | | 27,390 | | |
Investing Activities | | | | | 1 | | | | | | — | | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Financing Activities | | | | | 47,515 | | | | | | 68,296 | | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Name | | | Age | | | Position | |
Thomas Finke | | | 57 | | | Chairman and Chief Executive Officer | |
Paul G. Porter | | | 57 | | | Chief Financial Officer | |
W. Tom Donaldson III | | | 44 | | | Director | |
Frank Quintero | | | 50 | | | Director | |
Dylan Glenn | | | 52 | | | Director | |
Beatriz Acevedo-Greiff | | | 53 | | | Director | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
Thomas Finke | | | Invesco Ltd. | | | Investment management | | | Director | |
W. Tom Donaldson III | | | Blystone & Donaldson, LLC Legion Brewing Holdings LLC | | | Private investment Alcohol beverage manufacturer | | | Managing Partner Director | |
| Group G Holdings LLC | | | Electric lawn mowers | | | Director | | ||
Frank Quintero | | | Yucaipa Companies, LLC BioSig Technologies Inc Independent Sport & Entertainment | | | Private investment Medical technology Sports agency | | | Principal Advisory Board Member Director | |
Dylan Glen | | | KBBO Americas, L.P. Intellicheck, Inc. | | | Private investment Authentication services in the financial industry | | | Chief Executive Officer Director | |
| Guggenheim Partners American Action Network Episcopal High School Davidson College | | | Private investment Issue advocacy Private school Private college | | | Senior Managing Director Director Trustee Trustee | | ||
Beatriz Acevedo-Greiff | | | Suma Wealth 9th Wonder Agency Acevedo Foundation PocketWatch Silicon Valley Bank Beneficial State Bank | | | Fin-tech Marketing agency Latino advocacy Digital media Banking Banking | | | Founding Partner Partner and Board Member Founding Partner Director Board advisor | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
| | | Delta Air Lines | | | Airline | | | Director Board Advisor | |
Martin A. Sumichrast | | | cbdMD, Inc. Washington Capital, LLC SFT1, LLC Stone Street Capital, LLC Barings Global Short Duration High Yield Fund, Inc | | | Production and sales of consumer CBD products Private investment Private investment Private investment Private investment | | | Chairman and Co-Chief Executive Officer Managing Director Managing Director Managing Member Trustee and Chairman of the Nominating and Governance Committees | |
| Barings Capital Funds Trust, Inc | | | Private investment | | | Trustee and Chairman of the Nominating and Governance Committees | |
Name and Position | | | Year | | | Salary | | | Bonus | | | All Other Compensation(1)(2) | | | Total Compensation | | |||||||||||||||
Jeffrey Walker Chief Executive Officer | | | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 77,243 | | | | | $ | 877,243 | | |
Bruce Ogilvie Executive Chairman | | | | | 2021 | | | | | $ | 800,000 | | | | | $ | 0 | | | | | $ | 78,535 | | | | | $ | 878,535 | | |
John Kutch Chief Financial Officer | | | | | 2021 | | | | | $ | 275,000 | | | | | $ | 68,750 | | | | | $ | 11,855 | | | | | $ | 355,605 | | |
Paul Eibeler Board Chairman, COKeM | | | | | 2021 | | | | | $ | 292,000 | | | | | $ | 29,200 | | | | | $ | 14,572 | | | | | $ | 335,772 | | |
Ben Means President, Distribution Solutions | | | | | 2021 | | | | | $ | 335,000 | | | | | $ | 50,250 | | | | | $ | 14,571 | | | | | $ | 399,821 | | |
Name | | | Year | | | 401(K) Matching Plan Contributions | | | Car Allowance | | | Mobile Phone Allowance & Benefits | | | Work From Home Allowance | | | Life and AD&D Insurance | | | Company Paid Health & Welfare Benefits | | | Company Paid Disability Insurance | | | Travel Expenses | | |||||||||||||||||||||||||||
Jeffrey Walker | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 36,273 | | |
Bruce Ogilvie | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 24,000 | | | | | $ | 1,440 | | | | | $ | 1,440 | | | | | $ | 814 | | | | | $ | 9,203 | | | | | $ | 365 | | | | | $ | 36,273 | | |
John Kutch | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 1,440 | | | | | $ | 0 | | | | | $ | 374 | | | | | $ | 4,676 | | | | | $ | 365 | | | | | $ | 0 | | |
Paul Eibeler | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 396 | | | | | $ | 7,911 | | | | | $ | 365 | | | | | $ | 0 | | |
Ben Means | | | | | 2021 | | | | | $ | 5,000 | | | | | $ | 0 | | | | | $ | 900 | | | | | $ | 0 | | | | | $ | 456 | | | | | $ | 7,850 | | | | | $ | 365 | | | | | $ | 0 | | |
Name | | | Fees earned or paid in cash ($) | | | Stock-based awards ($)(1) | | | Total ($) | | ||||||
Alan Tuchman (former director, resigned on August 13th, 2022) | | | | $ | 136,000 | | | | | | | | $ | 136,000 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Net Revenues | | | | $ | 238,701 | | | | | $ | 293,202 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 213,233 | | | | | | 252,483 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 14,865 | | | | | | 13,260 | | |
Selling, General and Administrative Expense | | | | | 14,731 | | | | | | 13,778 | | |
Depreciation and Amortization | | | | | 1,636 | | | | | | 2,309 | | |
Transaction Costs | | | | | 640 | | | | | | (316) | | |
IC DISC Commissions | | | | | 1,389 | | | | | | 3,496 | | |
Total Operating Expenses | | | | | 33,261 | | | | | | 32,527 | | |
Operating (Loss) Income | | | | | (7,793) | | | | | | 8,192 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,354 | | | | | | 728 | | |
Total Other Expenses | | | | | 2,354 | | | | | | 728 | | |
(Loss) Income Before Income Tax (Benefit) Expense | | | | | (10,147) | | | | | | 7,464 | | |
Income Tax (Benefit) Expense | | | | | (2,638) | | | | | | 1,791 | | |
Net (Loss) Income | | | | | (7,509) | | | | | | 5,673 | | |
Net (Loss) Income per Share – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 6.30 | | |
Shares Used in Computing Net (Loss) Income per Share | | | | | 900 | | | | | | 900 | | |
($ in thousands, except shares) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | ||||||
Net Revenues | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,234,995 | | | | | | 1,140,885 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 64,260 | | | | | | 56,885 | | |
Selling, General and Administrative Expense | | | | | 58,110 | | | | | | 57,250 | | |
Depreciation and Amortization | | | | | 8,259 | | | | | | 11,651 | | |
Transaction Costs | | | | | (251) | | | | | | 3,509 | | |
IC DISC Commissions | | | | | 9,907 | | | | | | 5,394 | | |
Loss on Disposal of Property and Equipment | | | | | — | | | | | | 87 | | |
Total Operating Expenses | | | | | 140,285 | | | | | | 134,775 | | |
Operating Income | | | | | 42,098 | | | | | | 47,907 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 4,056 | | | | | | 2,938 | | |
Total Other Expenses | | | | | 4,056 | | | | | | 2,938 | | |
Income Before Provision for Income Tax Expense | | | | | 38,042 | | | | | | 44,969 | | |
Income Tax Expense | | | | | 9,423 | | | | | | 10,791 | | |
Net Income | | | | | 28,619 | | | | | | 34,178 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 7 | | | | | | 15 | | |
Total Comprehensive Income | | | | $ | 28,626 | | | | | $ | 34,193 | | |
Net Income per Share – Basic and Diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share | | | | $ | — | | | | | $ | 7.57 | | |
| | | June 30, 2022 | | | June 30, 2021 | | ||||||
Provision for Income Taxes | | | | $ | 9,423 | | | | | $ | 10,791 | | |
Effective Tax Rate | | | | | 25% | | | | | | 24% | | |
Statutory Federal Income Tax Rate | | | | | 21% | | | | | | 21% | | |
($ in thousands, except shares) | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | ||||||
Net Revenues | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense | | | | | 57,250 | | | | | | 50,007 | | |
Depreciation and Amortization | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment | | | | | 87 | | | | | | — | | |
Total Operating Expenses | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense | | | | | 10,791 | | | | | | 376 | | |
Net Income | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income | | | | $ | 34,193 | | | | | $ | 5,043 | | |
Net Income per Share – Basic and Diluted | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | |
Distributions of Paid in Capital per Share | | | | $ | 7.57 | | | | | $ | — | | |
| | | June 30, 2021 | | | June 30, 2020 | | ||||||
Provision for Income Taxes | | | | $ | 10,791 | | | | | $ | 376 | | |
Effective Tax Rate | | | | | 24% | | | | | | 7% | | |
Statutory Federal Income Tax Rate | | | | | 21% | | | | | | 21% | | |
| | | September 30 | | | June 30 | | ||||||||||||||||||||||||
(in millions) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | |||||||||||||||
Revolver Balance | | | | $ | 184 | | | | | $ | 126 | | | | | $ | 136 | | | | | $ | 54 | | | | | $ | 46 | | |
Availability | | | | | 8 | | | | | | 49 | | | | | | 48 | | | | | | 95 | | | | | | 40 | | |
| | | Three Months Ended September 30 | | | Year Ended June 30 | | ||||||||||||||||||||||||
(in thousands) | | | 2022 | | | 2021 | | | 2022 | | | 2021 | | | 2020 | | |||||||||||||||
Net Income (Loss). | | | | $ | (7,509) | | | | | $ | 5,673 | | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,362 | | |
Net Cash Provided by (Used In) Operating Activities. | | | | | (48,176) | | | | | | (69,879) | | | | | | (83,554) | | | | | | 74,716 | | | | | | 27,390 | | |
Investing Activities | | | | | 1 | | | | | | — | | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Financing Activities | | | | | 47,515 | | | | | | 68,296 | | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Name | | | Age | | | Position | |
Thomas Finke | | | 57 | | | Chairman and Chief Executive Officer | |
Paul G. Porter | | | 57 | | | Chief Financial Officer | |
W. Tom Donaldson III | | | 44 | | | Director | |
Frank Quintero | | | 50 | | | Director | |
Dylan Glenn | | | 52 | | | Director | |
Beatriz Acevedo-Greiff | | | 53 | | | Director | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
Thomas Finke | | | Invesco Ltd. | | | Investment management | | | Director | |
W. Tom Donaldson III | | | Blystone & Donaldson, LLC Legion Brewing Holdings LLC | | | Private investment Alcohol beverage manufacturer | | | Managing Partner Director | |
| Group G Holdings LLC | | | Electric lawn mowers | | | Director | | ||
Frank Quintero | | | Yucaipa Companies, LLC BioSig Technologies Inc Independent Sport & Entertainment | | | Private investment Medical technology Sports agency | | | Principal Advisory Board Member Director | |
Dylan Glen | | | KBBO Americas, L.P. Intellicheck, Inc. | | | Private investment Authentication services in the financial industry | | | Chief Executive Officer Director | |
| Guggenheim Partners American Action Network Episcopal High School Davidson College | | | Private investment Issue advocacy Private school Private college | | | Senior Managing Director Director Trustee Trustee | | ||
Beatriz Acevedo-Greiff | | | Suma Wealth 9th Wonder Agency Acevedo Foundation PocketWatch Silicon Valley Bank Beneficial State Bank | | | Fin-tech Marketing agency Latino advocacy Digital media Banking Banking | | | Founding Partner Partner and Board Member Founding Partner Director Board advisor | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
| | | Delta Air Lines | | | Airline | | | Director Board Advisor | |
Martin A. Sumichrast | | | cbdMD, Inc. Washington Capital, LLC SFT1, LLC Stone Street Capital, LLC Barings Global Short Duration High Yield Fund, Inc | | | Production and sales of consumer CBD products Private investment Private investment Private investment Private investment | | | Chairman and Co-Chief Executive Officer Managing Director Managing Director Managing Member Trustee and Chairman of the Nominating and Governance Committees | |
| Barings Capital Funds Trust, Inc | | | Private investment | | | Trustee and Chairman of the Nominating and Governance Committees | |
Name | | | Age | | | Position | |
Bruce Ogilvie | | | 64 | | | Executive Chairman of the Board and AEC Director | |
Jeffrey Walker | | | 54 | | | Chief Executive Officer and AEC Director | |
John Kutch | | | 56 | | | Chief Financial Officer and retiring Director | |
Paul Eibeler | | | 66 | | | Chairman of COKeM subsidiary and Director | |
Thomas Finke | | | 57 | | | Independent Director Nominee | |
W. Tom Donaldson III | | | 45 | | | Independent Director Nominee | |
Terilea J. Wielenga | | | 63 | | | Independent Director Nominee | |
Chris Nagelson | | | 55 | | | Independent Director Nominee | |
Name | | | Base Salary ($) | | | Target Bonus Percentage (%) | | ||||||
Bruce Ogilvie | | | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker | | | | | 800,000 | | | | | | 100 | | |
Name | | | Age | | | Position | |
Bruce Ogilvie | | | 64 | | | Executive Chairman of the Board and AEC Director | |
Jeffrey Walker | | | 54 | | | Chief Executive Officer and AEC Director | |
John Kutch | | | 56 | | | Chief Financial Officer and retiring Director | |
Paul Eibeler | | | 66 | | | Chairman of COKeM subsidiary and Director | |
Thomas Finke | | | 57 | | | Independent Director Nominee | |
W. Tom Donaldson III | | | 45 | | | Independent Director Nominee | |
Terilea J. Wielenga | | | 63 | | | Independent Director Nominee | |
Chris Nagelson | | | 55 | | | Independent Director Nominee | |
Name | | | Base Salary ($) | | | Target Bonus Percentage (%) | | ||||||
Bruce Ogilvie | | | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker | | | | | 800,000 | | | | | | 100 | | |
Name | | | Age | | | Position | |
Bruce Ogilvie | | | 64 | | | Executive Chairman of the Board and AEC Director | |
Jeffrey Walker | | | 54 | | | Chief Executive Officer and AEC Director | |
John Kutch | | | 56 | | | Chief Financial Officer and retiring Director | |
Paul Eibeler | | | 66 | | | Chairman of COKeM subsidiary and Director | |
Thomas Finke | | | 57 | | | Independent Director Nominee | |
W. Tom Donaldson III | | | 45 | | | Independent Director Nominee | |
Terilea J. Wielenga | | | 63 | | | Independent Director Nominee | |
Chris Nagelson | | | 55 | | | Independent Director Nominee | |
Name | | | Base Salary ($) | | | Target Bonus Percentage (%) | | ||||||
Bruce Ogilvie | | | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker | | | | | 800,000 | | | | | | 100 | | |
| | | | | | | | | | | | After the Business Combination | | | | | | | | | | | | | After the Business Combination | | ||||||||||||||||||||||||||||||||||||||||||||||||
| | Before the Business Combination | | Assuming No Redemption | | Assuming Maximum Redemption | | | Before the Business Combination | | Assuming No Redemption | | Assuming Maximum Redemption | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | Number of Shares of Adara | | Number of Shares of Combined Company | | Number of Shares of Combined Company | | | Number of Shares of Adara | | Number of Shares of Combined Company | | Number of Shares of Combined Company | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | Common Stock | | % | | Common Stock | | % | | Common Stock | | % | | | Common Stock | | % | | Common Stock | | % | | Common Stock | | % | | ||||||||||||||||||||||||||||||||||||||||||||||||
Directors and Executive Officers of Adara prior to the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Thomas Finke(4) | | | | 2,825,000 | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0%(4) | | | | | | 2,825,000 | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0%(4) | | | ||||||||||||
Paul G. Porter(3) | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
W. Tom Donaldson(4) | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
Frank Quintero(4) | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
Dylan Glenn(4) | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
Beatriz Acevedo-Greiff(4) | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
All Directors and Executive Officers of Adara as a Group prior to the Business Combination (6 Individuals) | | | | 2,825,000 | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0% | | | | | | 2,825,000 | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0% | | | ||||||||||||
Five Percent Holders of Adara prior to the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Adara Sponsor LLC(2)(6) | | | | 2,825,000 | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0% | | | | | | 2,825,000 | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0% | | | ||||||||||||
Hudson Bay Capital Management LP(7) | | | | 750,000 | | | | | 5.2% | | | | | 750,000 | | | | | 1.2% | | | | | 750,000 | | | | | 1.5% | | | | | | 750,000 | | | | | 5.2% | | | | | 750,000 | | | | | 1.2% | | | | | 750,000 | | | | | 1.5% | | | ||||||||||||
Karpus Management, Inc.(8) | | | | 897,571 | | | | | 6.2% | | | | | 897,571 | | | | | 1.5% | | | | | 897,571 | | | | | 1.8% | | | | | | 897,571 | | | | | 6.2% | | | | | 897,571 | | | | | 1.5% | | | | | 897,571 | | | | | 1.8% | | | ||||||||||||
MMCAP International Inc. SPC(9) | | | | 650,000 | | | | | 4.5% | | | | | 650,000 | | | | | 1.1% | | | | | 650,000 | | | | | 1.3% | | | | | | 650,000 | | | | | 4.5% | | | | | 650,000 | | | | | 1.1% | | | | | 650,000 | | | | | 1.3% | | | ||||||||||||
CVI Investments, Inc.(10) | | | | 500,000 | | | | | 3.5% | | | | | 500,000 | | | | | * | | | | | 500,000 | | | | | * | | | | | | 500,000 | | | | | 3.5% | | | | | 500,000 | | | | | * | | | | | 500,000 | | | | | * | | | ||||||||||||
Directors and Executive Officers of the Combined Company After Consummation of the Business Combination | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
Bruce Ogilvie(11)(12)(13) | | | | — | | | | | * | | | | | 23,750,000 | | | | | 38.9% | | | | | 23,750,000 | | | | | 46.6% | | | | | | — | | | | | * | | | | | 23,750,000 | | | | | 38.9% | | | | | 23,750,000 | | | | | 46.6% | | | ||||||||||||
Jeffrey Walker(11)(13) | | | | — | | | | | * | | | | | 23,750,000 | | | | | 38.9% | | | | | 23,750,000 | | | | | 46.6% | | | | | | — | | | | | * | | | | | 23,750,000 | | | | | 38.9% | | | | | 23,750,000 | | | | | 46.6% | | | ||||||||||||
John Kutch | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
Paul Eibeler | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
Terilea J. Wielenga | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
Chris Nagelson | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | |||||||||||||||||||||||||||||||||||||||||||
Thomas Finke | | | | 2,875,000(5) | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0% | | | | | | 2,875,000(5) | | | | | 19.7% | | | | | 6,070,000(5) | | | | | 9.3% | | | | | 6,070,000(5) | | | | | 11.0% | | | ||||||||||||
W. Tom Donaldson | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | | | | — | | | | | * | | | | | — | | | | | * | | | | | — | | | | | * | | | ||||||||||||
All Directors and Executive Officers of the Combined Company as a Group (8 individuals) | | | | 2,875,000(5) | | | | | 19.7% | | | | | 53,570,000(5) | | | | | 82.3% | | | | | 53,570,000(5) | | | | | 97.1% | | | | | | 2,875,000(5) | | | | | 19.7% | | | | | 53,570,000(5) | | | | | 82.3% | | | | | 53,570,000(5) | | | | | 97.1% | | |
| | Units | | Common Stock | | Warrants | | | Units | | Common Stock | | Warrants | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | | High | | Low | | High | | Low | | High | | Low | | | High | | Low | | High | | Low | | High | | Low | | ||||||||||||||||||||||||||||||||||||||||||||||||
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
March 31 | | | $ | 10.09 | | | | $ | 9.82 | | | | $ | 9.90 | | | | $ | 9.75 | | | | $ | 0.50 | | | | $ | 0.23 | | | | | $ | 10.09 | | | | $ | 9.82 | | | | $ | 9.90 | | | | $ | 9.75 | | | | $ | 0.50 | | | | $ | 0.23 | | | ||||||||||||
June 30 | | | $ | 10.09 | | | | $ | 9.85 | | | | $ | 9.94 | | | | $ | 9.80 | | | | $ | 0.37 | | | | $ | 0.05 | | | | | $ | 10.09 | | | | $ | 9.85 | | | | $ | 9.94 | | | | $ | 9.80 | | | | $ | 0.37 | | | | $ | 0.05 | | | ||||||||||||
September 30 | | | $ | 10.13 | | | | $ | 9.94 | | | | $ | 9.97 | | | | $ | 9.88 | | | | $ | 0.35 | | | | $ | 0.12 | | | | | $ | 10.13 | | | | $ | 9.94 | | | | $ | 9.97 | | | | $ | 9.88 | | | | $ | 0.35 | | | | $ | 0.12 | | | ||||||||||||
December 31 (through November 29, 2022) | | | $ | 10.05 | | | | $ | 10.02 | | | | $ | 10.06 | | | | $ | 9.95 | | | | $ | 0.19 | | | | $ | 0.05 | | | |||||||||||||||||||||||||||||||||||||||||||
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||
March 31(1) | | | $ | 10.45 | | | | $ | 9.72 | | | | $ | 10.80 | | | | $ | 9.59 | | | | $ | 0.62 | | | | $ | 0.50 | | | | | $ | 10.45 | | | | $ | 9.72 | | | | $ | 10.80 | | | | $ | 9.59 | | | | $ | 0.62 | | | | $ | 0.50 | | | ||||||||||||
June 30 | | | $ | 10.15 | | | | $ | 9.88 | | | | $ | 10.00 | | | | $ | 9.61 | | | | $ | 1.00 | | | | $ | 0.43 | | | | | $ | 10.15 | | | | $ | 9.88 | | | | $ | 10.00 | | | | $ | 9.61 | | | | $ | 1.00 | | | | $ | 0.43 | | | ||||||||||||
September 30 | | | $ | 10.11 | | | | $ | 9.64 | | | | $ | 9.80 | | | | $ | 9.61 | | | | $ | 0.75 | | | | $ | 0.46 | | | | | $ | 10.11 | | | | $ | 9.64 | | | | $ | 9.80 | | | | $ | 9.61 | | | | $ | 0.75 | | | | $ | 0.46 | | | ||||||||||||
December 31 | | | $ | 10.13 | | | | $ | 9.96 | | | | $ | 9.88 | | | | $ | 9.72 | | | | $ | 0.61 | | | | $ | 0.47 | | | | | $ | 10.13 | | | | $ | 9.96 | | | | $ | 9.88 | | | | $ | 9.72 | | | | $ | 0.61 | | | | $ | 0.47 | | |
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ALLIANCE FINANCIAL STATEMENTS | | | |||||
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ADARA FINANCIAL STATEMENTS | | | | | | | |
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($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Net Revenues | | | | $ | 238,701 | | | | | $ | 293,202 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 213,233 | | | | | | 252,483 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 14,865 | | | | | | 13,260 | | |
Selling, General and Administrative Expense | | | | | 14,731 | | | | | | 13,778 | | |
Depreciation and Amortization | | | | | 1,636 | | | | | | 2,309 | | |
Transaction Costs | | | | | 640 | | | | | | (316) | | |
IC DISC Commissions | | | | | 1,389 | | | | | | 3,496 | | |
Total Operating Expenses | | | | | 33,261 | | | | | | 32,527 | | |
Operating (Loss) Income | | | | | (7,793) | | | | | | 8,192 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,354 | | | | | | 728 | | |
Total Other Expenses | | | | | 2,354 | | | | | | 728 | | |
(Loss) Income Before Income Tax (Benefit) Expense | | | | | (10,147) | | | | | | 7,464 | | |
Income Tax (Benefit) Expense | | | | | (2,638) | | | | | | 1,791 | | |
Net (Loss) Income | | | | | (7,509) | | | | | | 5,673 | | |
Net (Loss) Income per Share – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 6.30 | | |
Shares Used in Computing Net (Loss) Income per Share | | | | | 900 | | | | | | 900 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | $ | 809 | | | | | $ | 1,469 | | |
Trade Receivables, Net | | | | | 93,347 | | | | | | 98,699 | | |
Related Party Receivable | | | | | — | | | | | | 245 | | |
Inventory, Net | | | | | 286,943 | | | | | | 249,439 | | |
Other Current Assets | | | | | 10,438 | | | | | | 9,128 | | |
Total Current Assets | | | | | 391,537 | | | | | | 358,980 | | |
Property and Equipment, Net | | | | | 6,283 | | | | | | 3,284 | | |
Operating Lease Right-Of-Use Assets | | | | | 7,263 | | | | | | 8,360 | | |
Goodwill | | | | | 81,903 | | | | | | 79,903 | | |
Intangibles, Net | | | | | 26,782 | | | | | | 18,764 | | |
Other Long-Term Assets | | | | | 371 | | | | | | 3,748 | | |
Deferred Income Tax Receivable | | | | | 2,804 | | | | | | — | | |
Total Assets | | | | $ | 516,943 | | | | | $ | 473,039 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable | | | | $ | 200,934 | | | | | $ | 198,187 | | |
Accrued Expenses | | | | | 14,274 | | | | | | 11,573 | | |
Current Portion of Operating Lease Obligations | | | | | 4,268 | | | | | | 4,453 | | |
Revolving Credit Facility, Net | | | | | — | | | | | | 135,968 | | |
Income Taxes Payable | | | | | — | | | | | | 418 | | |
Total Current Liabilities | | | | | 219,476 | | | | | | 350,599 | | |
Revolving Credit Facility, Net | | | | | 183,524 | | | | | | — | | |
Debt, Non- Current | | | | | 3,377 | | | | | | 3,377 | | |
Operating Lease Obligations, Non-Current | | | | | 3,876 | | | | | | 4,864 | | |
Deferred Tax Liability | | | | | 5,271 | | | | | | 5,271 | | |
Total Liabilities | | | | | 415,524 | | | | | | 364,111 | | |
Commitments and Contingencies (Note 12) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1000 shares Issued 957 Shares, Outstanding 900 Shares as of September 30, 2022, and June 30, 2022 | | | | | | | | | | | | | |
Paid In Capital | | | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost | | | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss | | | | | (66) | | | | | | (66) | | |
Retained Earnings | | | | | 64,159 | | | | | | 71,668 | | |
Total Stockholders’ Equity | | | | | 101,419 | | | | | | 108,928 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 516,943 | | | | | $ | 473,039 | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Loss | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,509) | | | | | | (7,509) | | |
Balances at September 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 64,159 | | | | | $ | 101,419 | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Loss | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,673 | | | | | | 5,673 | | |
Balances at September 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 48,722 | | | | | $ | 85,975 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net (Loss) Income | | | | $ | (7,509) | | | | | $ | 5,673 | | |
Adjustments to Reconcile Net Income to | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities: | | | | | | | | | | | | | |
Depreciation of Property and Equipment | | | | | 622 | | | | | | 1,018 | | |
Amortization of Intangible Assets | | | | | 1,014 | | | | | | 1,291 | | |
Amortization of Deferred Financing Costs (Included in Interest) | | | | | 208 | | | | | | 42 | | |
Bad Debt Expense | | | | | 178 | | | | | | 135 | | |
Changes in Assets and Liabilities, Net of Acquisitions | | | | | | | | | | | | | |
Trade Receivables | | | | | 8,462 | | | | | | 4,515 | | |
Related Party Receivable | | | | | 245 | | | | | | 782 | | |
Inventory | | | | | (27,025) | | | | | | (59,960) | | |
Income Taxes Payable\Receivable | | | | | (3,226) | | | | | | (1,096) | | |
Operating Lease Right-Of-Use Assets | | | | | 1,097 | | | | | | 970 | | |
Operating Lease Obligations | | | | | (5,216) | | | | | | (1,438) | | |
Other Assets | | | | | 2,345 | | | | | | (3,779) | | |
Accounts Payable | | | | | (21,848) | | | | | | (20,817) | | |
Accrued Expenses | | | | | 2,477 | | | | | | 2,788 | | |
Net Cash Used in Operating Activities | | | | | (48,176) | | | | | | (69,879) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Cash Paid for Business Acquisitions, Net of Cash Acquired | | | | | 1 | | | | | | — | | |
Net Cash Provided by Investing Activities | | | | | 1 | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Payments on Seller Notes | | | | | — | | | | | | (3,750) | | |
Payments on Revolving Credit Facility | | | | | (230,934) | | | | | | (281,665) | | |
Borrowings on Revolving Credit Facility | | | | | 278,449 | | | | | | 353,711 | | |
Net Cash Provided by Financing Activities | | | | | 47,515 | | | | | | 68,296 | | |
Net Decrease in Cash and Cash Equivalents | | | | | (660) | | | | | | (1,583) | | |
Cash, Beginning of the Period | | | | | 1,469 | | | | | | 4,028 | | |
Cash, End of the Period | | | | $ | 809 | | | | | $ | 2,445 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | |
Cash Paid for Interest | | | | $ | 2,013 | | | | | $ | 715 | | |
Cash Paid for Income Taxes | | | | | 293 | | | | | | 4,028 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | |
Fixed Asset Financed with debt | | | | | 3,377 | | | | | | — | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Trade receivables | | | | $ | 96,398 | | | | | $ | 101,064 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts | | | | | (667) | | | | | | (558) | | |
Sales returns reserve, net | | | | | (1,761) | | | | | | (1,898) | | |
Customer Rebate and Discount Reserve | | | | | (623) | | | | | | 90 | | |
Total Allowances | | | | | (3,051) | | | | | | (2,366) | | |
Trade Receivables, Net | | | | $ | 93,347 | | | | | $ | 98,698 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Customer #1 | | | | | 20.5% | | | | | | 21.8% | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Customer #1 | | | | | 14.5% | | | | | | 21.4% | | |
Customer #2 | | | | | 11.0% | | | | | | — | | |
Customer #3 | | | | | 10.4% | | | | | | 14.2% | | |
Total | | | | | 35.9% | | | | | | 35.6% | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Inventory | | | | $ | 293,528 | | | | | $ | 255,236 | | |
Less: Reserves | | | | | (6,584) | | | | | | (5,797) | | |
Inventory, Net | | | | $ | 286,943 | | | | | $ | 249,439 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property | | | | $ | 2,445 | | | | | $ | 2,443 | | |
Prepaid Insurance | | | | | 5 | | | | | | 431 | | |
Prepaid Acquisitions | | | | | 2,373 | | | | | | 2,243 | | |
Prepaid Freight | | | | | 475 | | | | | | 216 | | |
Prepaid Manufacturing Components | | | | | 14 | | | | | | 79 | | |
Prepaid Rent | | | | | 817 | | | | | | | | |
Prepaid Maintenance | | | | | 1,072 | | | | | | 885 | | |
Prepaid Shipping Supplies | | | | | 3,237 | | | | | | 2,832 | | |
Total Other Assets – Current | | | | $ | 10,438 | | | | | $ | 9,129 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits | | | | $ | 371 | | | | | $ | 3,748 | | |
Total Other Assets – Long Term | | | | $ | 371 | | | | | $ | 3,748 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements | | | | $ | 1,680 | | | | | $ | 1,680 | | |
Machinery and Equipment | | | | | 19,440 | | | | | | 19,440 | | |
Furniture and Fixtures | | | | | 3,530 | | | | | | 3,530 | | |
Capitalized Software | | | | | 11,452 | | | | | | 11,451 | | |
Equipment Under Capital Leases | | | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment | | | | | 2,662 | | | | | | 2,662 | | |
Construction in Progress | | | | | 3,775 | | | | | | 154 | | |
| | | | | 55,456 | | | | | | 51,834 | | |
Less: Accumulated Depreciation and Amortization | | | | | (49,173) | | | | | | (48,550) | | |
Total Property and Equipment, Net | | | | $ | 6,283 | | | | | $ | 3,284 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Goodwill: | | | | $ | 79,903 | | | | | $ | 79,903 | | |
Additions to Goodwill | | | | | 2,000 | | | | | | | | |
Goodwill | | | | $ | 81,903 | | | | | $ | 79,903 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | |
Customer Relationships | | | | $ | 19,974 | | | | | $ | 14,633 | | |
Trade Name – Alliance | | | | | 380 | | | | | | 634 | | |
Covenant Not to Compete | | | | | 3 | | | | | | 4 | | |
Mecca Customer Relationships | | | | | 3,357 | | | | | | 3.932 | | |
Customer List | | | | | 4,082 | | | | | | 4,724 | | |
Total | | | | $ | 27,796 | | | | | $ | 23,927 | | |
Accumulated Amortization | | | | | (1,014) | | | | | | (1,291) | | |
Intangible Assets, Net | | | | $ | 26,782 | | | | | $ | 22,636 | | |
($ in thousands) | | | Intangible Assets | | |||
Year Ended June 30 | | | | | | | |
2023 | | | | $ | 3,795 | | |
2024 | | | | | 4,223 | | |
2025 | | | | | 3,651 | | |
2026 | | | | | 3,339 | | |
2027 | | | | | 3,289 | | |
Thereafter | | | | | 8,485 | | |
Total Expected Amortization | | | | $ | 26,782 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Marketing Funds Accruals | | | | $ | 1,519 | | | | | $ | 2,738 | | |
Payroll and Payroll Tax Accruals | | | | | 3,590 | | | | | | 3,904 | | |
Accrued ICDISC | | | | | 5,148 | | | | | | 3,759 | | |
Accruals for Other Expenses | | | | | 4,017 | | | | | | 1,172 | | |
Total Accrued Expenses | | | | $ | 14,274 | | | | | $ | 11,573 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Bank of America Revolving Credit Agreement | | | | $ | 183,691 | | | | | $ | 136,176 | | |
Less: Deferred Finance Costs | | | | | (167) | | | | | | (208) | | |
Revolving Credit, Net | | | | $ | 183,524 | | | | | $ | 135,968 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Lease cost | | | | | | | | | | | | | |
Finance Lease Costs: | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets | | | | $ | 51 | | | | | $ | 296 | | |
Interest on Lease Liabilities | | | | | 4 | | | | | | 10 | | |
Capitalized Operating Lease Cost | | | | | 1,095 | | | | | | 1,131 | | |
Short Term Lease Cost | | | | | 1 | | | | | | — | | |
Total Lease Cost | | | | $ | 1,151 | | | | | $ | 1,438 | | |
Other Information | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases | | | | $ | — | | | | | $ | 12 | | |
Operating Cash Flows from Capitalized Operating Leases | | | | | 1,176 | | | | | | 1,179 | | |
Financing Cash Flows from Finance Leases | | | | | — | | | | | | 489 | | |
Net ROU Remeasurement | | | | | — | | | | | | 108 | | |
| | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2022 | | ||||||
Weighted-Average Remaining Lease Term – finance leases (in years) | | | | | 1.83 | | | | | | 1.83 | | |
Weighted average remaining lease term – Capitalized Operating leases (in Years) | | | | | 2.13 | | | | | | 3.00 | | |
Weighted-Average Discount Rate – Finance Leases | | | | | 3.70 | | | | | | 3.59 | | |
Weighted-Average Discount Rate – Capitalized Operating Leases | | | | | 4.10 | | | | | | 4.09 | | |
($ in thousands) | | | Operating Leases | | |||
2023 | | | | | 4,244 | | |
2024 | | | | | 3,780 | | |
2025 | | | | | 624 | | |
2026 | | | | | 99 | | |
Total Lease Payments | | | | | 8,747 | | |
Less Imputed Interest | | | | | (357) | | |
Total | | | | $ | 8,390 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | |||
Revenue | | | | $ | 3,819 | | |
Net Loss | | | | | (273) | | |
($ in thousands) | | | | | | | |
Cash Acquired | | | | $ | 1 | | |
Trade Receivables | | | | | 3,289 | | |
Inventory | | | | | 10,479 | | |
Goodwill | | | | | 2,000 | | |
Intangibles | | | | | 9,031 | | |
Other Assets | | | | | 19 | | |
Accounts Payable | | | | | (24,819) | | |
Total Purchase Price | | | | $ | — | | |
($ in thousands, except shares) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | |||||||||
Net Revenues | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,234,995 | | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 64,260 | | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense | | | | | 58,110 | | | | | | 57,249 | | | | | | 50,007 | | |
Depreciation and Amortization | | | | | 8,259 | | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs | | | | | (251) | | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions | | | | | 9,907 | | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment | | | | | — | | | | | | 87 | | | | | | — | | |
Total Operating Expenses | | | | | 140,285 | | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income | | | | | 42,098 | | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses | | | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense | | | | | 38,042 | | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense | | | | | 9,423 | | | | | | 10,791 | | | | | | 376 | | |
Net Income | | | | | 28,619 | | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 7 | | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income | | | | $ | 28,626 | | | | | | 34,193 | | | | | | 5,043 | | |
Net Income per Share – Basic and Diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | | | | | 900 | | |
Distributions of Paid In Capital per Share | | | | $ | — | | | | | $ | 7.57 | | | | | $ | — | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | $ | 1,469 | | | | | $ | 4,028 | | |
Trade Receivables, Net | | | | | 98,699 | | | | | | 111,332 | | |
Related Party Receivable | | | | | 245 | | | | | | 1,476 | | |
Inventory, Net | | | | | 249,439 | | | | | | 141,661 | | |
Other Current Assets | | | | | 9,128 | | | | | | 7,287 | | |
Total Current Assets | | | | | 358,980 | | | | | | 265,784 | | |
Property and Equipment, Net | | | | | 3,284 | | | | | | 6,330 | | |
Operating Lease Right-Of-Use Assets | | | | | 8,360 | | | | | | 12,658 | | |
Goodwill | | | | | 79,903 | | | | | | 79,903 | | |
Intangibles, Net | | | | | 18,764 | | | | | | 23,927 | | |
Other Long-Term Assets | | | | | 3,748 | | | | | | 361 | | |
Total Assets | | | | $ | 473,039 | | | | | $ | 388,963 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable | | | | $ | 198,187 | | | | | $ | 214,332 | | |
Accrued Expenses | | | | | 11,573 | | | | | | 13,555 | | |
Current Portion of Financing Lease Obligations | | | | | — | | | | | | 811 | | |
Current Portion of Operating Lease Obligations | | | | | 4,453 | | | | | | 4,622 | | |
Seller Note, Current | | | | | — | | | | | | 3,000 | | |
Income Taxes Payable | | | | | 418 | | | | | | 2,286 | | |
Revolving Credit Facility, Net | | | | | 135,968 | | | | | | — | | |
Total Current Liabilities | | | | | 350,599 | | | | | | 238,606 | | |
Revolving Credit Facility, Net | | | | | — | | | | | | 53,580 | | |
Debt, Non-Current | | | | | 3,377 | | | | | | | | |
Seller Note, Non-Current | | | | | — | | | | | | 750 | | |
Operating Lease Obligations | | | | | 4,864 | | | | | | 9,277 | | |
Deferred Tax Liability | | | | | 5,271 | | | | | | 6,448 | | |
Total Liabilities | | | | | 364,111 | | | | | | 308,661 | | |
Commitments and Contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1,000 shares | | | | | | | | | | | | | |
Issued 957 Shares, Outstanding 900 Shares as of June 30, 2022, and 2021 | | | | | | | | | | | | | |
Paid In Capital | | | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost | | | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss | | | | | (66) | | | | | | (73) | | |
Retained Earnings | | | | | 71,668 | | | | | | 43,049 | | |
Total Stockholders’ Equity | | | | | 108,928 | | | | | | 80,302 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 473,039 | | | | | $ | 388,963 | | |
($ in thousands) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net Income | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Adjustments to Reconcile Net Income to | | | | | | | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities: | | | | | | | | | | | | | | | | | | | |
Depreciation of Property and Equipment | | | | | 3,096 | | | | | | 5,623 | | | | | | 7,124 | | |
Amortization of Intangible Assets | | | | | 5,163 | | | | | | 5,772 | | | | | | 8,660 | | |
Amortization of Deferred Financing Costs (Included in Interest) | | | | | 165 | | | | | | 334 | | | | | | 358 | | |
Bad Debt Expense | | | | | 496 | | | | | | 225 | | | | | | 155 | | |
Deferred Income Taxes | | | | | (1,177) | | | | | | 1,543 | | | | | | 1,286 | | |
Loss on Disposal of Fixed Assets | | | | | — | | | | | | 87 | | | | | | — | | |
Changes in Assets and Liabilities, Net of Acquisitions | | | | | | | | | | | | | | | | | | | |
Trade Receivables | | | | | 12,138 | | | | | | 8,053 | | | | | | 13,684 | | |
Related Party Receivable | | | | | 1,231 | | | | | | 157 | | | | | | (1,633) | | |
Inventory | | | | | (107,778) | | | | | | (8,617) | | | | | | 35,821 | | |
Income Taxes Payable\Receivable | | | | | (1,867) | | | | | | 4,453 | | | | | | (1,187) | | |
Operating Lease Right-Of-Use Assets | | | | | 4,299 | | | | | | (817) | | | | | | 3,137 | | |
Operating Lease Obligations | | | | | (4,583) | | | | | | 664 | | | | | | (3,284) | | |
Other Assets | | | | | (5,230) | | | | | | 1,980 | | | | | | 3,228 | | |
Accounts Payable | | | | | (16,146) | | | | | | 18,686 | | | | | | (38,761) | | |
Accrued Expenses | | | | | (1,980) | | | | | | 2,395 | | | | | | (6,560) | | |
Net Cash Provided by (Used in) Operating Activities | | | | | (83,554) | | | | | | 74,718 | | | | | | 27,391 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Capital Expenditures | | | | | (50) | | | | | | (650) | | | | | | (2,702) | | |
Cash Paid for Business Acquisitions, Net of Cash Acquired | | | | | — | | | | | | (65,409) | | | | | | (2,561) | | |
Net Cash Used in Investing Activities | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Payments on Seller Notes | | | | | (3,750) | | | | | | (4,750) | | | | | | — | | |
Payments on Revolving Credit Facility | | | | | (1,346,442) | | | | | | (1,310,333) | | | | | | (724,783) | | |
Borrowings on Revolving Credit Facility | | | | | 1,428,664 | | | | | | 1,318,518 | | | | | | 698,670 | | |
Payments on Financing Leases | | | | | (811) | | | | | | (2,101) | | | | | | (2,478) | | |
Proceeds from Debt | | | | | 3,377 | | | | | | — | | | | | | 1,378 | | |
Capital Dividends | | | | | — | | | | | | (6,811) | | | | | | — | | |
Capital Contribution | | | | | — | | | | | | — | | | | | | 3,860 | | |
Deferred Financing Costs | | | | | — | | | | | | (500) | | | | | | — | | |
Net Cash Provided by (Used In) Financing Activities | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Net Increase (Decrease) in Cash and Cash Equivalents | | | | | (2,566) | | | | | | 2,682 | | | | | | (1,225) | | |
Net Effect of Currency Translation on Cash and Cash Equivalents | | | | | 7 | | | | | | 15 | | | | | | (318) | | |
Cash, Beginning of the Period | | | | | 4,028 | | | | | | 1,331 | | | | | | 2,874 | | |
Cash, End of the Period | | | | $ | 1,469 | | | | | $ | 4,028 | | | | | $ | 1,331 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Interest | | | | $ | 2,878 | | | | | $ | 2,079 | | | | | $ | 3,272 | | |
Cash Paid for Income Taxes | | | | $ | 9,345 | | | | | $ | 6,540 | | | | | $ | 362 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | | | | | | | |
Property and Equipment Acquired Under Capital Leases | | | | $ | — | | | | | $ | — | | | | | $ | 1,378 | | |
Issuance of Seller’s Note Related to Acquisition | | | | $ | — | | | | | $ | 8,500 | | | | | $ | — | | |
PPP Loan Forgiveness | | | | $ | — | | | | | $ | 1,740 | | | | | $ | — | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Income (Loss) | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2019 | | | | | 900 | | | | | $ | 42,951 | | | | | $ | (2,675) | | | | | $ | 230 | | | | | $ | 3,510 | | | | | $ | 44,016 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | (318) | | | | | | — | | | | | | (318) | | |
Capital Contribution | | | | | — | | | | | | 3,860 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,860 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,361 | | | | | | 5,361 | | |
Balances at June 30, 2020 | | | | | 900 | | | | | $ | 46,811 | | | | | $ | (2,675) | | | | | $ | (88) | | | | | $ | 8,871 | | | | | $ | 52,919 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | 15 | | | | | | — | | | | | | 15 | | |
Distributions of Paid In Capital | | | | | — | | | | | | (6,811) | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,811) | | |
Purchase of Treasury Stock | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,178 | | | | | | 34,178 | | |
Balances at June 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | — | | | | | | 7 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,619 | | | | | | 28,619 | | |
Balances at June 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Asset Class | | | Useful Life | |
Leasehold Improvements | | | 5 – 10 years | |
Machinery and Equipment | | | 3 – 7 years | |
Furniture and Fixtures | | | 5 – 7 years | |
Capitalized Software | | | 1 – 3 years | |
Equipment Under Capital Leases | | | 5 years | |
Computer Equipment | | | 2 – 5 years | |
Name | | | Age | | | Position | |
Thomas Finke | | | 57 | | | Chairman and Chief Executive Officer | |
Paul G. Porter | | | 57 | | | Chief Financial Officer | |
W. Tom Donaldson III | | | 44 | | | Director | |
Frank Quintero | | | 50 | | | Director | |
Dylan Glenn | | | 52 | | | Director | |
Beatriz Acevedo-Greiff | | | 53 | | | Director | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
Thomas Finke | | | Invesco Ltd. | | | Investment management | | | Director | |
W. Tom Donaldson III | | | Blystone & Donaldson, LLC Legion Brewing Holdings LLC | | | Private investment Alcohol beverage manufacturer | | | Managing Partner Director | |
| Group G Holdings LLC | | | Electric lawn mowers | | | Director | | ||
Frank Quintero | | | Yucaipa Companies, LLC BioSig Technologies Inc Independent Sport & Entertainment | | | Private investment Medical technology Sports agency | | | Principal Advisory Board Member Director | |
Dylan Glen | | | KBBO Americas, L.P. Intellicheck, Inc. | | | Private investment Authentication services in the financial industry | | | Chief Executive Officer Director | |
| Guggenheim Partners American Action Network Episcopal High School Davidson College | | | Private investment Issue advocacy Private school Private college | | | Senior Managing Director Director Trustee Trustee | | ||
Beatriz Acevedo-Greiff | | | Suma Wealth 9th Wonder Agency Acevedo Foundation PocketWatch Silicon Valley Bank Beneficial State Bank | | | Fin-tech Marketing agency Latino advocacy Digital media Banking Banking | | | Founding Partner Partner and Board Member Founding Partner Director Board advisor | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
| | | Delta Air Lines | | | Airline | | | Director Board Advisor | |
Martin A. Sumichrast | | | cbdMD, Inc. Washington Capital, LLC SFT1, LLC Stone Street Capital, LLC Barings Global Short Duration High Yield Fund, Inc | | | Production and sales of consumer CBD products Private investment Private investment Private investment Private investment | | | Chairman and Co-Chief Executive Officer Managing Director Managing Director Managing Member Trustee and Chairman of the Nominating and Governance Committees | |
| Barings Capital Funds Trust, Inc | | | Private investment | | | Trustee and Chairman of the Nominating and Governance Committees | |
Name | | | Age | | | Position | |
Bruce Ogilvie | | | 64 | | | Executive Chairman of the Board and AEC Director | |
Jeffrey Walker | | | 54 | | | Chief Executive Officer and AEC Director | |
John Kutch | | | 56 | | | Chief Financial Officer and retiring Director | |
Paul Eibeler | | | 66 | | | Chairman of COKeM subsidiary and Director | |
Thomas Finke | | | 57 | | | Independent Director Nominee | |
W. Tom Donaldson III | | | 45 | | | Independent Director Nominee | |
Terilea J. Wielenga | | | 63 | | | Independent Director Nominee | |
Chris Nagelson | | | 55 | | | Independent Director Nominee | |
Name | | | Base Salary ($) | | | Target Bonus Percentage (%) | | ||||||
Bruce Ogilvie | | | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker | | | | | 800,000 | | | | | | 100 | | |
| | | | | | | | | | | | | | | After the Business Combination | | |||||||||||||||||||||
| | | Before the Business Combination | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
| | | Number of Shares of Adara | | | Number of Shares of Combined Company | | | Number of Shares of Combined Company | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Common Stock | | | % | | | Common Stock | | | % | | | Common Stock | | | % | | ||||||||||||||||||
Directors and Executive Officers of Adara prior to the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Thomas Finke(4) | | | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0%(4) | | |
Paul G. Porter(3) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
W. Tom Donaldson(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Frank Quintero(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Dylan Glenn(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Beatriz Acevedo-Greiff(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of Adara as a Group prior to the Business Combination (6 Individuals) | | | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
Five Percent Holders of Adara prior to the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adara Sponsor LLC(2)(6) | | | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
Hudson Bay Capital Management LP(7) | | | | | 750,000 | | | | | | 5.2% | | | | | | 750,000 | | | | | | 1.2% | | | | | | 750,000 | | | | | | 1.5% | | |
Karpus Management, Inc.(8) | | | | | 897,571 | | | | | | 6.2% | | | | | | 897,571 | | | | | | 1.5% | | | | | | 897,571 | | | | | | 1.8% | | |
MMCAP International Inc. SPC(9) | | | | | 650,000 | | | | | | 4.5% | | | | | | 650,000 | | | | | | 1.1% | | | | | | 650,000 | | | | | | 1.3% | | |
CVI Investments, Inc.(10) | | | | | 500,000 | | | | | | 3.5% | | | | | | 500,000 | | | | | | * | | | | | | 500,000 | | | | | | * | | |
Directors and Executive Officers of the Combined Company After Consummation of the Business Combination | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bruce Ogilvie(11)(12)(13) | | | | | — | | | | | | * | | | | | | 23,750,000 | | | | | | 38.9% | | | | | | 23,750,000 | | | | | | 46.6% | | |
Jeffrey Walker(11)(13) | | | | | — | | | | | | * | | | | | | 23,750,000 | | | | | | 38.9% | | | | | | 23,750,000 | | | | | | 46.6% | | |
John Kutch | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Paul Eibeler | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Terilea J. Wielenga | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Chris Nagelson | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Thomas Finke | | | | | 2,875,000(5) | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
W. Tom Donaldson | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of the Combined Company as a Group (8 individuals) | | | | | 2,875,000(5) | | | | | | 19.7% | | | | | | 53,570,000(5) | | | | | | 82.3% | | | | | | 53,570,000(5) | | | | | | 97.1% | | |
| | | Units | | | Common Stock | | | Warrants | | |||||||||||||||||||||||||||
Quarter Ended | | | High | | | Low | | | High | | | Low | | | High | | | Low | | ||||||||||||||||||
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31 | | | | $ | 10.09 | | | | | $ | 9.82 | | | | | $ | 9.90 | | | | | $ | 9.75 | | | | | $ | 0.50 | | | | | $ | 0.23 | | |
June 30 | | | | $ | 10.09 | | | | | $ | 9.85 | | | | | $ | 9.94 | | | | | $ | 9.80 | | | | | $ | 0.37 | | | | | $ | 0.05 | | |
September 30 | | | | $ | 10.13 | | | | | $ | 9.94 | | | | | $ | 9.97 | | | | | $ | 9.88 | | | | | $ | 0.35 | | | | | $ | 0.12 | | |
December 31 (through November 29, 2022) | | | | $ | 10.05 | | | | | $ | 10.02 | | | | | $ | 10.06 | | | | | $ | 9.95 | | | | | $ | 0.19 | | | | | $ | 0.05 | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31(1) | | | | $ | 10.45 | | | | | $ | 9.72 | | | | | $ | 10.80 | | | | | $ | 9.59 | | | | | $ | 0.62 | | | | | $ | 0.50 | | |
June 30 | | | | $ | 10.15 | | | | | $ | 9.88 | | | | | $ | 10.00 | | | | | $ | 9.61 | | | | | $ | 1.00 | | | | | $ | 0.43 | | |
September 30 | | | | $ | 10.11 | | | | | $ | 9.64 | | | | | $ | 9.80 | | | | | $ | 9.61 | | | | | $ | 0.75 | | | | | $ | 0.46 | | |
December 31 | | | | $ | 10.13 | | | | | $ | 9.96 | | | | | $ | 9.88 | | | | | $ | 9.72 | | | | | $ | 0.61 | | | | | $ | 0.47 | | |
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ALLIANCE FINANCIAL STATEMENTS | | | |||||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-15 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
| | | | F-21 | | | |
ADARA FINANCIAL STATEMENTS | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-60 | | | |
| | | | F-61 | | | |
| | | | F-62 | | | |
| | | | F-63 | | | |
| | | | F-64 | | | |
| | | | F-65 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Net Revenues | | | | $ | 238,701 | | | | | $ | 293,202 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 213,233 | | | | | | 252,483 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 14,865 | | | | | | 13,260 | | |
Selling, General and Administrative Expense | | | | | 14,731 | | | | | | 13,778 | | |
Depreciation and Amortization | | | | | 1,636 | | | | | | 2,309 | | |
Transaction Costs | | | | | 640 | | | | | | (316) | | |
IC DISC Commissions | | | | | 1,389 | | | | | | 3,496 | | |
Total Operating Expenses | | | | | 33,261 | | | | | | 32,527 | | |
Operating (Loss) Income | | | | | (7,793) | | | | | | 8,192 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,354 | | | | | | 728 | | |
Total Other Expenses | | | | | 2,354 | | | | | | 728 | | |
(Loss) Income Before Income Tax (Benefit) Expense | | | | | (10,147) | | | | | | 7,464 | | |
Income Tax (Benefit) Expense | | | | | (2,638) | | | | | | 1,791 | | |
Net (Loss) Income | | | | | (7,509) | | | | | | 5,673 | | |
Net (Loss) Income per Share – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 6.30 | | |
Shares Used in Computing Net (Loss) Income per Share | | | | | 900 | | | | | | 900 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | $ | 809 | | | | | $ | 1,469 | | |
Trade Receivables, Net | | | | | 93,347 | | | | | | 98,699 | | |
Related Party Receivable | | | | | — | | | | | | 245 | | |
Inventory, Net | | | | | 286,943 | | | | | | 249,439 | | |
Other Current Assets | | | | | 10,438 | | | | | | 9,128 | | |
Total Current Assets | | | | | 391,537 | | | | | | 358,980 | | |
Property and Equipment, Net | | | | | 6,283 | | | | | | 3,284 | | |
Operating Lease Right-Of-Use Assets | | | | | 7,263 | | | | | | 8,360 | | |
Goodwill | | | | | 81,903 | | | | | | 79,903 | | |
Intangibles, Net | | | | | 26,782 | | | | | | 18,764 | | |
Other Long-Term Assets | | | | | 371 | | | | | | 3,748 | | |
Deferred Income Tax Receivable | | | | | 2,804 | | | | | | — | | |
Total Assets | | | | $ | 516,943 | | | | | $ | 473,039 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable | | | | $ | 200,934 | | | | | $ | 198,187 | | |
Accrued Expenses | | | | | 14,274 | | | | | | 11,573 | | |
Current Portion of Operating Lease Obligations | | | | | 4,268 | | | | | | 4,453 | | |
Revolving Credit Facility, Net | | | | | — | | | | | | 135,968 | | |
Income Taxes Payable | | | | | — | | | | | | 418 | | |
Total Current Liabilities | | | | | 219,476 | | | | | | 350,599 | | |
Revolving Credit Facility, Net | | | | | 183,524 | | | | | | — | | |
Debt, Non- Current | | | | | 3,377 | | | | | | 3,377 | | |
Operating Lease Obligations, Non-Current | | | | | 3,876 | | | | | | 4,864 | | |
Deferred Tax Liability | | | | | 5,271 | | | | | | 5,271 | | |
Total Liabilities | | | | | 415,524 | | | | | | 364,111 | | |
Commitments and Contingencies (Note 12) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1000 shares Issued 957 Shares, Outstanding 900 Shares as of September 30, 2022, and June 30, 2022 | | | | | | | | | | | | | |
Paid In Capital | | | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost | | | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss | | | | | (66) | | | | | | (66) | | |
Retained Earnings | | | | | 64,159 | | | | | | 71,668 | | |
Total Stockholders’ Equity | | | | | 101,419 | | | | | | 108,928 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 516,943 | | | | | $ | 473,039 | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Loss | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,509) | | | | | | (7,509) | | |
Balances at September 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 64,159 | | | | | $ | 101,419 | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Loss | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,673 | | | | | | 5,673 | | |
Balances at September 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 48,722 | | | | | $ | 85,975 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net (Loss) Income | | | | $ | (7,509) | | | | | $ | 5,673 | | |
Adjustments to Reconcile Net Income to | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities: | | | | | | | | | | | | | |
Depreciation of Property and Equipment | | | | | 622 | | | | | | 1,018 | | |
Amortization of Intangible Assets | | | | | 1,014 | | | | | | 1,291 | | |
Amortization of Deferred Financing Costs (Included in Interest) | | | | | 208 | | | | | | 42 | | |
Bad Debt Expense | | | | | 178 | | | | | | 135 | | |
Changes in Assets and Liabilities, Net of Acquisitions | | | | | | | | | | | | | |
Trade Receivables | | | | | 8,462 | | | | | | 4,515 | | |
Related Party Receivable | | | | | 245 | | | | | | 782 | | |
Inventory | | | | | (27,025) | | | | | | (59,960) | | |
Income Taxes Payable\Receivable | | | | | (3,226) | | | | | | (1,096) | | |
Operating Lease Right-Of-Use Assets | | | | | 1,097 | | | | | | 970 | | |
Operating Lease Obligations | | | | | (5,216) | | | | | | (1,438) | | |
Other Assets | | | | | 2,345 | | | | | | (3,779) | | |
Accounts Payable | | | | | (21,848) | | | | | | (20,817) | | |
Accrued Expenses | | | | | 2,477 | | | | | | 2,788 | | |
Net Cash Used in Operating Activities | | | | | (48,176) | | | | | | (69,879) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Cash Paid for Business Acquisitions, Net of Cash Acquired | | | | | 1 | | | | | | — | | |
Net Cash Provided by Investing Activities | | | | | 1 | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Payments on Seller Notes | | | | | — | | | | | | (3,750) | | |
Payments on Revolving Credit Facility | | | | | (230,934) | | | | | | (281,665) | | |
Borrowings on Revolving Credit Facility | | | | | 278,449 | | | | | | 353,711 | | |
Net Cash Provided by Financing Activities | | | | | 47,515 | | | | | | 68,296 | | |
Net Decrease in Cash and Cash Equivalents | | | | | (660) | | | | | | (1,583) | | |
Cash, Beginning of the Period | | | | | 1,469 | | | | | | 4,028 | | |
Cash, End of the Period | | | | $ | 809 | | | | | $ | 2,445 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | |
Cash Paid for Interest | | | | $ | 2,013 | | | | | $ | 715 | | |
Cash Paid for Income Taxes | | | | | 293 | | | | | | 4,028 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | |
Fixed Asset Financed with debt | | | | | 3,377 | | | | | | — | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Trade receivables | | | | $ | 96,398 | | | | | $ | 101,064 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts | | | | | (667) | | | | | | (558) | | |
Sales returns reserve, net | | | | | (1,761) | | | | | | (1,898) | | |
Customer Rebate and Discount Reserve | | | | | (623) | | | | | | 90 | | |
Total Allowances | | | | | (3,051) | | | | | | (2,366) | | |
Trade Receivables, Net | | | | $ | 93,347 | | | | | $ | 98,698 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Customer #1 | | | | | 20.5% | | | | | | 21.8% | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Customer #1 | | | | | 14.5% | | | | | | 21.4% | | |
Customer #2 | | | | | 11.0% | | | | | | — | | |
Customer #3 | | | | | 10.4% | | | | | | 14.2% | | |
Total | | | | | 35.9% | | | | | | 35.6% | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Inventory | | | | $ | 293,528 | | | | | $ | 255,236 | | |
Less: Reserves | | | | | (6,584) | | | | | | (5,797) | | |
Inventory, Net | | | | $ | 286,943 | | | | | $ | 249,439 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property | | | | $ | 2,445 | | | | | $ | 2,443 | | |
Prepaid Insurance | | | | | 5 | | | | | | 431 | | |
Prepaid Acquisitions | | | | | 2,373 | | | | | | 2,243 | | |
Prepaid Freight | | | | | 475 | | | | | | 216 | | |
Prepaid Manufacturing Components | | | | | 14 | | | | | | 79 | | |
Prepaid Rent | | | | | 817 | | | | | | | | |
Prepaid Maintenance | | | | | 1,072 | | | | | | 885 | | |
Prepaid Shipping Supplies | | | | | 3,237 | | | | | | 2,832 | | |
Total Other Assets – Current | | | | $ | 10,438 | | | | | $ | 9,129 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits | | | | $ | 371 | | | | | $ | 3,748 | | |
Total Other Assets – Long Term | | | | $ | 371 | | | | | $ | 3,748 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements | | | | $ | 1,680 | | | | | $ | 1,680 | | |
Machinery and Equipment | | | | | 19,440 | | | | | | 19,440 | | |
Furniture and Fixtures | | | | | 3,530 | | | | | | 3,530 | | |
Capitalized Software | | | | | 11,452 | | | | | | 11,451 | | |
Equipment Under Capital Leases | | | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment | | | | | 2,662 | | | | | | 2,662 | | |
Construction in Progress | | | | | 3,775 | | | | | | 154 | | |
| | | | | 55,456 | | | | | | 51,834 | | |
Less: Accumulated Depreciation and Amortization | | | | | (49,173) | | | | | | (48,550) | | |
Total Property and Equipment, Net | | | | $ | 6,283 | | | | | $ | 3,284 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Goodwill: | | | | $ | 79,903 | | | | | $ | 79,903 | | |
Additions to Goodwill | | | | | 2,000 | | | | | | | | |
Goodwill | | | | $ | 81,903 | | | | | $ | 79,903 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Trade receivables | | | | $ | 101,064 | | | | | $ | 115,618 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts | | | | | (558) | | | | | | (1,145) | | |
Sales returns reserve, net | | | | | (1,898) | | | | | | (2,975) | | |
Customer Rebate and Discount Reserve | | | | | 90 | | | | | | (166) | | |
Total Allowances | | | | | (2,366) | | | | | | (4,286) | | |
Trade Receivables, Net | | | | $ | 98,699 | | | | | $ | 111,332 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | |
Customer Relationships | | | | $ | 19,974 | | | | | $ | 14,633 | | |
Trade Name – Alliance | | | | | 380 | | | | | | 634 | | |
Covenant Not to Compete | | | | | 3 | | | | | | 4 | | |
Mecca Customer Relationships | | | | | 3,357 | | | | | | 3.932 | | |
Customer List | | | | | 4,082 | | | | | | 4,724 | | |
Total | | | | $ | 27,796 | | | | | $ | 23,927 | | |
Accumulated Amortization | | | | | (1,014) | | | | | | (1,291) | | |
Intangible Assets, Net | | | | $ | 26,782 | | | | | $ | 22,636 | | |
($ in thousands) | | | Intangible Assets | | |||
Year Ended June 30 | | | | | | | |
2023 | | | | $ | 3,795 | | |
2024 | | | | | 4,223 | | |
2025 | | | | | 3,651 | | |
2026 | | | | | 3,339 | | |
2027 | | | | | 3,289 | | |
Thereafter | | | | | 8,485 | | |
Total Expected Amortization | | | | $ | 26,782 | | |
| | | Year Ended | | |||||||||||||||
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | | June 30, 2020 | | |||||||||
Customer #1 | | | | | 23.6% | | | | | | 23.7% | | | | | | 19.6% | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Customer #1 | | | | | 21.4% | | | | | | 12.2% | | |
Customer #2 | | | | | 14.2% | | | | | | * | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Inventory | | | | $ | 255,236 | | | | | $ | 145,740 | | |
Less: Reserves | | | | | (5,797) | | | | | | (4,079) | | |
Inventory, Net | | | | $ | 249,439 | | | | | $ | 141,661 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Marketing Funds Accruals | | | | $ | 1,519 | | | | | $ | 2,738 | | |
Payroll and Payroll Tax Accruals | | | | | 3,590 | | | | | | 3,904 | | |
Accrued ICDISC | | | | | 5,148 | | | | | | 3,759 | | |
Accruals for Other Expenses | | | | | 4,017 | | | | | | 1,172 | | |
Total Accrued Expenses | | | | $ | 14,274 | | | | | $ | 11,573 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property | | | | $ | 2,443 | | | | | $ | 3,411 | | |
Prepaid Insurance | | | | | 431 | | | | | | 2,011 | | |
Prepaid Acquisitions | | | | | 2,243 | | | | | | — | | |
Prepaid Freight | | | | | 216 | | | | | | | | |
Prepaid Manufacturing Components | | | | | 79 | | | | | | 167 | | |
Prepaid Maintenance | | | | | 885 | | | | | | 165 | | |
Prepaid Shipping Supplies | | | | | 2,832 | | | | | | 1,533 | | |
Total Other Assets – Current | | | | $ | 9,129 | | | | | $ | 7,287 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits | | | | $ | 3,748 | | | | | $ | 361 | | |
Total Other Assets – Long Term | | | | $ | 3,748 | | | | | $ | 361 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements | | | | $ | 1,680 | | | | | $ | 1,597 | | |
Machinery and Equipment | | | | | 19,440 | | | | | | 19,236 | | |
Furniture and Fixtures | | | | | 3,530 | | | | | | 2,622 | | |
Capitalized Software | | | | | 11,451 | | | | | | 11,422 | | |
Equipment Under Capital Leases | | | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment | | | | | 2,662 | | | | | | 2,665 | | |
Construction in Progress | | | | | 154 | | | | | | 104 | | |
| | | | | 51,834 | | | | | | 50,563 | | |
Less: Accumulated Depreciation and Amortization | | | | | (48,550) | | | | | | (44,233) | | |
Total Property and Equipment, Net | | | | $ | 3,284 | | | | | $ | 6,330 | | |
($ in thousands) | | | Life (in yrs.) | | | Amortization Year Ended June 30, 2021 | | | June 30, 2021 | | | Amortization Year Ended June 30, 2022 | | | June 30, 2022 | | ||||||||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer Relationships | | | 15 | | | | $ | (4,331) | | | | | $ | 14,633 | | | | | $ | (3,690) | | | | | $ | 10,943 | | |
Trade Name – Alliance | | | 10 | | | | | (382) | | | | | | 634 | | | | | | (254) | | | | | | 380 | | |
Covenant Not to Compete | | | 7 | | | | | (1) | | | | | | 4 | | | | | | (1) | | | | | | 3 | | |
Mecca Customer Relationships | | | 15 | | | | | (575) | | | | | | 3,932 | | | | | | (575) | | | | | | 3,357 | | |
Customer List | | | 10 – 15 | | | | | (739) | | | | | | 4,724 | | | | | | (643) | | | | | | 4,081 | | |
Total Identifiable Intangible Assets: | | | | | | | $ | (6,028) | | | | | $ | 23,927 | | | | | $ | (5,163) | | | | | $ | 18,764 | | |
($ in thousands) | | | Intangible Assets | | |||
Year Ended June 30 | | | | | | | |
2023 | | | | $ | 4,056 | | |
2024 | | | | | 3,470 | | |
2025 | | | | | 2,898 | | |
2026 | | | | | 2,586 | | |
2027 | | | | | 2,536 | | |
Thereafter | | | | | 3,218 | | |
Total Expected Amortization | | | | $ | 18,764 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Marketing Funds Accruals | | | | $ | 2,738 | | | | | $ | 1,294 | | |
Payroll and Payroll Tax Accruals | | | | | 3,904 | | | | | | 6,833 | | |
Accruals for Other Expenses | | | | | 4,931 | | | | | | 5,428 | | |
Total Accrued Expenses | | | | $ | 11,573 | | | | | $ | 13,555 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Bank of America Revolving Credit Agreement | | | | $ | 136,176 | | | | | $ | 53,955 | | |
Less: Deferred Finance Costs | | | | | (208) | | | | | | (375) | | |
Revolving Credit, Net | | | | $ | 135,968 | | | | | $ | 53,580 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Bank of America Revolving Credit Agreement | | | | $ | 183,691 | | | | | $ | 136,176 | | |
Less: Deferred Finance Costs | | | | | (167) | | | | | | (208) | | |
Revolving Credit, Net | | | | $ | 183,524 | | | | | $ | 135,968 | | |
| | | Year Ended June 30 | | |||||||||||||||
(In thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Income Tax Expense (Benefit): | | | | | | | | | | | | | | | | | | | |
Current: | | | | | | | | | | | | | | | | | | | |
Federal | | | | $ | 7,937 | | | | | $ | 7,201 | | | | | $ | (1,759) | | |
State | | | | | 2,663 | | | | | | 2,304 | | | | | | 849 | | |
Total Current | | | | $ | 10,599 | | | | | $ | 9,505 | | | | | $ | (910) | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal | | | | | (951) | | | | | | 1,070 | | | | | | 1,137 | | |
State | | | | | (226) | | | | | | 216 | | | | | | 149 | | |
Total Deferred | | | | | (1,177) | | | | | | 1,286 | | | | | | 1,286 | | |
Income Tax Expense | | | | $ | 9,423 | | | | | $ | 10,791 | | | | | $ | 376 | | |
| | | Year Ended June 30 | | | | | |||||||||||||||||||||||||||||||||
(In thousands) | | | 2022 | | | 2021 | | | 2020 | | | | | |||||||||||||||||||||||||||
Federal Income Tax Provision at Statutory Rate | | | | $ | 7,484 | | | | | | 21% | | | | | $ | 9,444 | | | | | | 21% | | | | | $ | 1,205 | | | | | | 21% | | | | | |
State Taxes, Net of Federal Benefits | | | | | 2,437 | | | | | | 6% | | | | | | 2,520 | | | | | | 6% | | | | | | 997 | | | | | | 17% | | | | | |
Meals Entertainments | | | | | — | | | | | | 0% | | | | | | 6 | | | | | | 0% | | | | | | 18 | | | | | | 0% | | | | | |
Foreign Derived Intangible Income | | | | | (618) | | | | | | -2% | | | | | | (802) | | | | | | -2% | | | | | | (598) | | | | | | -10% | | | | | |
NOL Carryback Refund Before AMT | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | (1,216) | | | | | | -21% | | | | | |
Debt Forgiveness and Interest Income | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | |
Other | | | | | 120 | | | | | | -1% | | | | | | (377) | | | | | | -1% | | | | | | (30) | | | | | | -1% | | | | | |
Income Tax Expense | | | | $ | 9,423 | | | | | | 24% | | | | | $ | 10,791 | | | | | | 24% | | | | | $ | 376 | | | | | | 6% | | | | | |
| | | Year Ended June 30 | | |||||||||
(In thousands) | | | 2022 | | | 2021 | | ||||||
Deferred Tax Assets: | | | | ||||||||||
Other Deferred (ICDISC) | | | | $ | 583 | | | | | $ | 245 | | |
Net Operating Losses | | | | | 30 | | | | | | 30 | | |
Bad Debt | | | | | 39 | | | | | | 83 | | |
Total Deferred Tax Assets | | | | | 652 | | | | | | 358 | | |
Deferred Tax Liabilities: | | | | | | | | | | | | | |
Inventory | | | | | (324) | | | | | | (875) | | |
Accruals Not Currently Deductible | | | | | (792) | | | | | | (98) | | |
Prepaids | | | | | (1,004) | | | | | | (1,224) | | |
Property and Equipment | | | | | (1,399) | | | | | | (1,924) | | |
Goodwill/Intangibles | | | | | (2,404) | | | | | | (2,685) | | |
Total Deferred Tax Liabilities | | | | | (5,923) | | | | | | (6,806) | | |
Net Deferred Tax Liability | | | | $ | (5,271) | | | | | $ | (6,448) | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Lease cost | | | | | | | | | | | | | |
Finance Lease Costs: | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets | | | | $ | 51 | | | | | $ | 296 | | |
Interest on Lease Liabilities | | | | | 4 | | | | | | 10 | | |
Capitalized Operating Lease Cost | | | | | 1,095 | | | | | | 1,131 | | |
Short Term Lease Cost | | | | | 1 | | | | | | — | | |
Total Lease Cost | | | | $ | 1,151 | | | | | $ | 1,438 | | |
Other Information | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases | | | | $ | — | | | | | $ | 12 | | |
Operating Cash Flows from Capitalized Operating Leases | | | | | 1,176 | | | | | | 1,179 | | |
Financing Cash Flows from Finance Leases | | | | | — | | | | | | 489 | | |
Net ROU Remeasurement | | | | | — | | | | | | 108 | | |
| | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2022 | | ||||||
Weighted-Average Remaining Lease Term – finance leases (in years) | | | | | 1.83 | | | | | | 1.83 | | |
Weighted average remaining lease term – Capitalized Operating leases (in Years) | | | | | 2.13 | | | | | | 3.00 | | |
Weighted-Average Discount Rate – Finance Leases | | | | | 3.70 | | | | | | 3.59 | | |
Weighted-Average Discount Rate – Capitalized Operating Leases | | | | | 4.10 | | | | | | 4.09 | | |
($ in thousands) | | | Operating Leases | | |||
2023 | | | | | 4,244 | | |
2024 | | | | | 3,780 | | |
2025 | | | | | 624 | | |
2026 | | | | | 99 | | |
Total Lease Payments | | | | | 8,747 | | |
Less Imputed Interest | | | | | (357) | | |
Total | | | | $ | 8,390 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | |||
Revenue | | | | $ | 3,819 | | |
Net Loss | | | | | (273) | | |
($ in thousands) | | | | | | | |
Cash Acquired | | | | $ | 1 | | |
Trade Receivables | | | | | 3,289 | | |
Inventory | | | | | 10,479 | | |
Goodwill | | | | | 2,000 | | |
Intangibles | | | | | 9,031 | | |
Other Assets | | | | | 19 | | |
Accounts Payable | | | | | (24,819) | | |
Total Purchase Price | | | | $ | — | | |
($ in thousands, except shares) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | |||||||||
Net Revenues | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,234,995 | | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 64,260 | | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense | | | | | 58,110 | | | | | | 57,249 | | | | | | 50,007 | | |
Depreciation and Amortization | | | | | 8,259 | | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs | | | | | (251) | | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions | | | | | 9,907 | | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment | | | | | — | | | | | | 87 | | | | | | — | | |
Total Operating Expenses | | | | | 140,285 | | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income | | | | | 42,098 | | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses | | | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense | | | | | 38,042 | | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense | | | | | 9,423 | | | | | | 10,791 | | | | | | 376 | | |
Net Income | | | | | 28,619 | | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 7 | | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income | | | | $ | 28,626 | | | | | | 34,193 | | | | | | 5,043 | | |
Net Income per Share – Basic and Diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | | | | | 900 | | |
Distributions of Paid In Capital per Share | | | | $ | — | | | | | $ | 7.57 | | | | | $ | — | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | $ | 1,469 | | | | | $ | 4,028 | | |
Trade Receivables, Net | | | | | 98,699 | | | | | | 111,332 | | |
Related Party Receivable | | | | | 245 | | | | | | 1,476 | | |
Inventory, Net | | | | | 249,439 | | | | | | 141,661 | | |
Other Current Assets | | | | | 9,128 | | | | | | 7,287 | | |
Total Current Assets | | | | | 358,980 | | | | | | 265,784 | | |
Property and Equipment, Net | | | | | 3,284 | | | | | | 6,330 | | |
Operating Lease Right-Of-Use Assets | | | | | 8,360 | | | | | | 12,658 | | |
Goodwill | | | | | 79,903 | | | | | | 79,903 | | |
Intangibles, Net | | | | | 18,764 | | | | | | 23,927 | | |
Other Long-Term Assets | | | | | 3,748 | | | | | | 361 | | |
Total Assets | | | | $ | 473,039 | | | | | $ | 388,963 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable | | | | $ | 198,187 | | | | | $ | 214,332 | | |
Accrued Expenses | | | | | 11,573 | | | | | | 13,555 | | |
Current Portion of Financing Lease Obligations | | | | | — | | | | | | 811 | | |
Current Portion of Operating Lease Obligations | | | | | 4,453 | | | | | | 4,622 | | |
Seller Note, Current | | | | | — | | | | | | 3,000 | | |
Income Taxes Payable | | | | | 418 | | | | | | 2,286 | | |
Revolving Credit Facility, Net | | | | | 135,968 | | | | | | — | | |
Total Current Liabilities | | | | | 350,599 | | | | | | 238,606 | | |
Revolving Credit Facility, Net | | | | | — | | | | | | 53,580 | | |
Debt, Non-Current | | | | | 3,377 | | | | | | | | |
Seller Note, Non-Current | | | | | — | | | | | | 750 | | |
Operating Lease Obligations | | | | | 4,864 | | | | | | 9,277 | | |
Deferred Tax Liability | | | | | 5,271 | | | | | | 6,448 | | |
Total Liabilities | | | | | 364,111 | | | | | | 308,661 | | |
Commitments and Contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1,000 shares | | | | | | | | | | | | | |
Issued 957 Shares, Outstanding 900 Shares as of June 30, 2022, and 2021 | | | | | | | | | | | | | |
Paid In Capital | | | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost | | | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss | | | | | (66) | | | | | | (73) | | |
Retained Earnings | | | | | 71,668 | | | | | | 43,049 | | |
Total Stockholders’ Equity | | | | | 108,928 | | | | | | 80,302 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 473,039 | | | | | $ | 388,963 | | |
($ in thousands) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net Income | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Adjustments to Reconcile Net Income to | | | | | | | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities: | | | | | | | | | | | | | | | | | | | |
Depreciation of Property and Equipment | | | | | 3,096 | | | | | | 5,623 | | | | | | 7,124 | | |
Amortization of Intangible Assets | | | | | 5,163 | | | | | | 5,772 | | | | | | 8,660 | | |
Amortization of Deferred Financing Costs (Included in Interest) | | | | | 165 | | | | | | 334 | | | | | | 358 | | |
Bad Debt Expense | | | | | 496 | | | | | | 225 | | | | | | 155 | | |
Deferred Income Taxes | | | | | (1,177) | | | | | | 1,543 | | | | | | 1,286 | | |
Loss on Disposal of Fixed Assets | | | | | — | | | | | | 87 | | | | | | — | | |
Changes in Assets and Liabilities, Net of Acquisitions | | | | | | | | | | | | | | | | | | | |
Trade Receivables | | | | | 12,138 | | | | | | 8,053 | | | | | | 13,684 | | |
Related Party Receivable | | | | | 1,231 | | | | | | 157 | | | | | | (1,633) | | |
Inventory | | | | | (107,778) | | | | | | (8,617) | | | | | | 35,821 | | |
Income Taxes Payable\Receivable | | | | | (1,867) | | | | | | 4,453 | | | | | | (1,187) | | |
Operating Lease Right-Of-Use Assets | | | | | 4,299 | | | | | | (817) | | | | | | 3,137 | | |
Operating Lease Obligations | | | | | (4,583) | | | | | | 664 | | | | | | (3,284) | | |
Other Assets | | | | | (5,230) | | | | | | 1,980 | | | | | | 3,228 | | |
Accounts Payable | | | | | (16,146) | | | | | | 18,686 | | | | | | (38,761) | | |
Accrued Expenses | | | | | (1,980) | | | | | | 2,395 | | | | | | (6,560) | | |
Net Cash Provided by (Used in) Operating Activities | | | | | (83,554) | | | | | | 74,718 | | | | | | 27,391 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Capital Expenditures | | | | | (50) | | | | | | (650) | | | | | | (2,702) | | |
Cash Paid for Business Acquisitions, Net of Cash Acquired | | | | | — | | | | | | (65,409) | | | | | | (2,561) | | |
Net Cash Used in Investing Activities | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Payments on Seller Notes | | | | | (3,750) | | | | | | (4,750) | | | | | | — | | |
Payments on Revolving Credit Facility | | | | | (1,346,442) | | | | | | (1,310,333) | | | | | | (724,783) | | |
Borrowings on Revolving Credit Facility | | | | | 1,428,664 | | | | | | 1,318,518 | | | | | | 698,670 | | |
Payments on Financing Leases | | | | | (811) | | | | | | (2,101) | | | | | | (2,478) | | |
Proceeds from Debt | | | | | 3,377 | | | | | | — | | | | | | 1,378 | | |
Capital Dividends | | | | | — | | | | | | (6,811) | | | | | | — | | |
Capital Contribution | | | | | — | | | | | | — | | | | | | 3,860 | | |
Deferred Financing Costs | | | | | — | | | | | | (500) | | | | | | — | | |
Net Cash Provided by (Used In) Financing Activities | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Net Increase (Decrease) in Cash and Cash Equivalents | | | | | (2,566) | | | | | | 2,682 | | | | | | (1,225) | | |
Net Effect of Currency Translation on Cash and Cash Equivalents | | | | | 7 | | | | | | 15 | | | | | | (318) | | |
Cash, Beginning of the Period | | | | | 4,028 | | | | | | 1,331 | | | | | | 2,874 | | |
Cash, End of the Period | | | | $ | 1,469 | | | | | $ | 4,028 | | | | | $ | 1,331 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Interest | | | | $ | 2,878 | | | | | $ | 2,079 | | | | | $ | 3,272 | | |
Cash Paid for Income Taxes | | | | $ | 9,345 | | | | | $ | 6,540 | | | | | $ | 362 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | | | | | | | |
Property and Equipment Acquired Under Capital Leases | | | | $ | — | | | | | $ | — | | | | | $ | 1,378 | | |
Issuance of Seller’s Note Related to Acquisition | | | | $ | — | | | | | $ | 8,500 | | | | | $ | — | | |
PPP Loan Forgiveness | | | | $ | — | | | | | $ | 1,740 | | | | | $ | — | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Income (Loss) | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2019 | | | | | 900 | | | | | $ | 42,951 | | | | | $ | (2,675) | | | | | $ | 230 | | | | | $ | 3,510 | | | | | $ | 44,016 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | (318) | | | | | | — | | | | | | (318) | | |
Capital Contribution | | | | | — | | | | | | 3,860 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,860 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,361 | | | | | | 5,361 | | |
Balances at June 30, 2020 | | | | | 900 | | | | | $ | 46,811 | | | | | $ | (2,675) | | | | | $ | (88) | | | | | $ | 8,871 | | | | | $ | 52,919 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | 15 | | | | | | — | | | | | | 15 | | |
Distributions of Paid In Capital | | | | | — | | | | | | (6,811) | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,811) | | |
Purchase of Treasury Stock | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,178 | | | | | | 34,178 | | |
Balances at June 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | — | | | | | | 7 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,619 | | | | | | 28,619 | | |
Balances at June 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Asset Class | | | Useful Life | |
Leasehold Improvements | | | 5 – 10 years | |
Machinery and Equipment | | | 3 – 7 years | |
Furniture and Fixtures | | | 5 – 7 years | |
Capitalized Software | | | 1 – 3 years | |
Equipment Under Capital Leases | | | 5 years | |
Computer Equipment | | | 2 – 5 years | |
($ in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Lease cost | | | | | | | | | | | | | | | | | | | |
Finance Lease Costs: | | | | | | | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets | | | | $ | 675 | | | | | $ | 1,189 | | | | | $ | 1,095 | | |
Interest on Lease Liabilities | | | | | 27 | | | | | | 81 | | | | | | 125 | | |
Operating Lease Cost | | | | | 4,515 | | | | | | 4,789 | | | | | | 3,827 | | |
Short Term Lease Cost | | | | | 1,140 | | | | | | — | | | | | | — | | |
Variable Lease Cost | | | | | 1,633 | | | | | | 869 | | | | | | 680 | | |
Total Lease Cost | | | | $ | 7,990 | | | | | $ | 6,928 | | | | | $ | 5,727 | | |
Other Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases | | | | $ | 30 | | | | | $ | 86 | | | | | $ | 125 | | |
($ in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Operating Cash Flows from Operating Leases | | | | $ | 4,820 | | | | | $ | 4,944 | | | | | $ | 3,973 | | |
Financing Cash Flows from Finance Leases | | | | | 1,070 | | | | | | 1,931 | | | | | | 1,720 | | |
Right-of Use Assets Obtained in Exchange for New Finance Lease Liabilities | | | | | — | | | | | | — | | | | | | 1,561 | | |
Right-of Use Assets Obtained in Exchange for Capitalized Operating Lease Liabilities | | | | | — | | | | | | 3,640 | | | | | | 39 | | |
Net ROU Remeasurement | | | | | (651) | | | | | | 841 | | | | | | 169 | | |
| | | Year Ended June 30, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
Weighted-Average Remaining Lease Term – Operating Leases | | | | | 2.33 | | | | | | 1.63 | | | | | | 2.13 | | |
Weighted-Average Remaining Lease Term – Financing Leases | | | | | 2.06 | | | | | | 3.12 | | | | | | 4.09 | | |
Weighted-Average Discount Rate – Operating Leases | | | | | 4.10 | | | | | | 3.35 | | | | | | 3.26 | | |
Weighted-Average Discount Rate – Financing Leases | | | | | 3.70 | | | | | | 4.46 | | | | | | 4.45 | | |
($ in thousands) | | | Operating Leases | | |||
2023 | | | | | 4,403 | | |
2024 | | | | | 4,019 | | |
2025 | | | | | 1,402 | | |
2026 | | | | | 99 | | |
Total Lease Payments | | | | | 9,923 | | |
Less Imputed Interest | | | | | (606) | | |
Total | | | | $ | 9,317 | | |
($ in thousands) | | | Nine Months Ended June 30, 2021 | | |||
Revenue | | | | $ | 405,714 | | |
Net Income | | | | | 19,567 | | |
| Cash at Close | | | | $ | 71,859 | | |
| Note to Seller | | | | | 8,500 | | |
| | | | | $ | 80,359 | | |
($ in thousands) | | | | | | | |
Cash Acquired | | | | $ | 6,450 | | |
Trade Receivables | | | | | 48,729 | | |
Inventory | | | | | 70,267 | | |
Other Assets | | | | | 1,779 | | |
Accounts Payable | | | | | (48,770) | | |
Accrued Expenses | | | | | (734) | | |
Property and Equipment | | | | | 2,638 | | |
Total Purchase Price | | | | $ | 80,359 | | |
| | | Year Ended | | |||||||||
($ in thousands) | | | June 30, 2021 | | | June 30, 2020 | | ||||||
Revenue | | | | $ | 1,414,039 | | | | | $ | 1,195,005 | | |
Net Income | | | | | 42,542 | | | | | | 3,402 | | |
| | | June 30, 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 9,607 | | | | | $ | 724,410 | | |
Prepaid expenses | | | | | 120,833 | | | | | | 199,166 | | |
Total Current Assets | | | | | 130,440 | | | | | | 923,576 | | |
Marketable securities held in Trust Account | | | | | 116,318,176 | | | | | | 116,160,281 | | |
TOTAL ASSETS | | | | $ | 116,448,616 | | | | | $ | 117,083,857 | | |
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 569,468 | | | | | $ | 440,245 | | |
Promissory note | | | | | 330,000 | | | | | | — | | |
Total Current Liabilities | | | | | 899,468 | | | | | | 440,245 | | |
Warrant Liabilities | | | | | 1,785,600 | | | | | | 4,860,800 | | |
TOTAL LIABILITIES | | | | | 2,685,068 | | | | | | 5,301,045 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 shares at $10.10 redemption value at June 30, 2022 and December 31, 2021 | | | | | 116,150,000 | | | | | | 116,150,000 | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized | | | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding at June 30, 2022 and December 31, 2021 | | | | | 288 | | | | | | 288 | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (2,386,740) | | | | | | (4,367,476) | | |
TOTAL STOCKHOLDERS’ DEFICIT | | | | | (2,386,452) | | | | | | (4,367,188) | | |
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT | | | | $ | 116,448,616 | | | | | $ | 117,083,857 | | |
| | | Three Months Ended June 30, | | | Six Months Ended June 30, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
Operating and formation costs | | | | $ | 677,791 | | | | | $ | 247,167 | | | | | $ | 1,252,359 | | | | | $ | 415,170 | | |
Loss from operations | | | | | (677,791) | | | | | | (247,167) | | | | | | (1,252,359) | | | | | | (415,170) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 147,540 | | | | | | 2,896 | | | | | | 157,895 | | | | | | 4,424 | | |
Transaction costs incurred in connection with IPO | | | | | — | | | | | | — | | | | | | — | | | | | | (86,544) | | |
Change in fair value of warrants liabilities | | | | | 1,388,800 | | | | | | (1,561,700) | | | | | | 3,075,200 | | | | | | 2,545,200 | | |
Other income (expense), net | | | | | 1,536,340 | | | | | | (1,558,804) | | | | | | 3,233,095 | | | | | | 2,463,080 | | |
Net income (loss) | | | | $ | 858,549 | | | | | $ | (1,805,971) | | | | | $ | 1,980,736 | | | | | $ | 2,047,910 | | |
Weighted average shares outstanding, Class A common stock | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 8,831,492 | | |
Basic and diluted net income (loss) per share, Class A common stock | | | | $ | 0.06 | | | | | $ | (0.13) | | | | | $ | 0.14 | | | | | $ | 0.18 | | |
Weighted average shares outstanding, Class B common stock | | | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,787,983 | | |
Basic and diluted net income (loss) per share, Class B common stock | | | | $ | 0.06 | | | | | $ | (0.13) | | | | | $ | 0.14 | | | | | $ | 0.18 | | |
| | | Class B Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2022 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (4,367,476) | | | | | $ | (4,367,188) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,122,187 | | | | | | 1,122,187 | | |
Balance – March 31, 2022 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (3,245,289) | | | | | $ | (3,245,001) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 858,549 | | | | | | 858,549 | | |
Balance – June 30, 2022 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (2,386,740) | | | | | $ | (2,386,452) | | |
| | | Class B Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity (Deficit) | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (5,476) | | | | | $ | 19,524 | | |
Accretion for Class A common stock to redemption amount | | | | | — | | | | | | — | | | | | | (313,212) | | | | | | (7,606,206) | | | | | | (7,919,418) | | |
Cash paid in excess of fair value of private warrants | | | | | — | | | | | | — | | | | | | 288,400 | | | | | | — | | | | | | 288,400 | | |
Issuance of Representative Warrants | | | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 3,853,881 | | | | | | 3,853,881 | | |
Balance – March 31, 2021 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (3,757,801) | | | | | $ | (3,757,513) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (1,805,971) | | | | | | (1,805,971) | | |
Balance – June 30, 2021 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (5,563,772) | | | | | $ | (5,563,484) | | |
| | | Six Months Ended June 30, 2022 | | | Six Months Ended June 30, 2021 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income | | | | $ | 1,980,736 | | | | | $ | 2,047,910 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | | | | | |
Change in fair value of warrant liabilities | | | | | (3,075,200) | | | | | | (2,545,200) | | |
Transaction costs incurred in connection with IPO | | | | | — | | | | | | 86,544 | | |
Interest earned on marketable securities held in Trust Account | | | | | (157,895) | | | | | | (4,424) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 78,333 | | | | | | 104,014 | | |
Accrued expenses | | | | | 129,223 | | | | | | 182,798 | | |
Net cash used in operating activities | | | | | (1,044,803) | | | | | | (128,358) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | — | | | | | | (116,150,000) | | |
Net cash used in investing activities | | | | | — | | | | | | (116,150,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of Units, net of underwriting discounts paid | | | | | — | | | | | | 114,000,000 | | |
Proceeds from sale of Private Placements Warrants | | | | | — | | | | | | 4,120,000 | | |
Proceeds from sale of Unit Purchase Option | | | | | — | | | | | | 100 | | |
Proceeds from promissory note | | | | | 330,000 | | | | | | — | | |
Repayment of promissory note – related party | | | | | — | | | | | | (600,000) | | |
Payment of offering costs | | | | | — | | | | | | (402,352) | | |
Net cash provided by financing activities | | | | | 330,000 | | | | | | 117,117,748 | | |
Net Change in Cash | | | | | (714,803) | | | | | | 839,390 | | |
Cash – Beginning of period | | | | | 724,410 | | | | | | 102,296 | | |
Cash – End of period | | | | $ | 9,607 | | | | | $ | 941,686 | | |
Non-Cash investing and financing activities: | | | | | | | | | | | | | |
Offering costs included in accrued offering costs | | | | $ | — | | | | | $ | 5,000 | | |
Accretion for Class A common stock to redemption amount | | | | $ | — | | | | | $ | 7,606,206 | | |
Name | | | Age | | | Position | |
Thomas Finke | | | 57 | | | Chairman and Chief Executive Officer | |
Paul G. Porter | | | 57 | | | Chief Financial Officer | |
W. Tom Donaldson III | | | 44 | | | Director | |
Frank Quintero | | | 50 | | | Director | |
Dylan Glenn | | | 52 | | | Director | |
Beatriz Acevedo-Greiff | | | 53 | | | Director | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
Thomas Finke | | | Invesco Ltd. | | | Investment management | | | Director | |
W. Tom Donaldson III | | | Blystone & Donaldson, LLC Legion Brewing Holdings LLC | | | Private investment Alcohol beverage manufacturer | | | Managing Partner Director | |
| Group G Holdings LLC | | | Electric lawn mowers | | | Director | | ||
Frank Quintero | | | Yucaipa Companies, LLC BioSig Technologies Inc Independent Sport & Entertainment | | | Private investment Medical technology Sports agency | | | Principal Advisory Board Member Director | |
Dylan Glen | | | KBBO Americas, L.P. Intellicheck, Inc. | | | Private investment Authentication services in the financial industry | | | Chief Executive Officer Director | |
| Guggenheim Partners American Action Network Episcopal High School Davidson College | | | Private investment Issue advocacy Private school Private college | | | Senior Managing Director Director Trustee Trustee | | ||
Beatriz Acevedo-Greiff | | | Suma Wealth 9th Wonder Agency Acevedo Foundation PocketWatch Silicon Valley Bank Beneficial State Bank | | | Fin-tech Marketing agency Latino advocacy Digital media Banking Banking | | | Founding Partner Partner and Board Member Founding Partner Director Board advisor | |
Individual | | | Entity | | | Entity’s Business | | | Affiliation | |
| | | Delta Air Lines | | | Airline | | | Director Board Advisor | |
Martin A. Sumichrast | | | cbdMD, Inc. Washington Capital, LLC SFT1, LLC Stone Street Capital, LLC Barings Global Short Duration High Yield Fund, Inc | | | Production and sales of consumer CBD products Private investment Private investment Private investment Private investment | | | Chairman and Co-Chief Executive Officer Managing Director Managing Director Managing Member Trustee and Chairman of the Nominating and Governance Committees | |
| Barings Capital Funds Trust, Inc | | | Private investment | | | Trustee and Chairman of the Nominating and Governance Committees | |
| Gross proceeds | | | | $ | 115,000,000 | | |
| Less: | | | | | | | |
| Proceeds allocated to Public Warrants | | | | $ | (5,290,000) | | |
| Class A common stock issuance at cost | | | | $ | (1,479,418) | | |
| Plus: | | | | | | | |
| Accretion of carrying value to redemption value | | | | $ | 7,919,418 | | |
| Class A common stock subject to possible redemption | | | | $ | 116,150,000 | | |
Name | | | Age | | | Position | |
Bruce Ogilvie | | | 64 | | | Executive Chairman of the Board and AEC Director | |
Jeffrey Walker | | | 54 | | | Chief Executive Officer and AEC Director | |
John Kutch | | | 56 | | | Chief Financial Officer and retiring Director | |
Paul Eibeler | | | 66 | | | Chairman of COKeM subsidiary and Director | |
Thomas Finke | | | 57 | | | Independent Director Nominee | |
W. Tom Donaldson III | | | 45 | | | Independent Director Nominee | |
Terilea J. Wielenga | | | 63 | | | Independent Director Nominee | |
Chris Nagelson | | | 55 | | | Independent Director Nominee | |
Name | | | Base Salary ($) | | | Target Bonus Percentage (%) | | ||||||
Bruce Ogilvie | | | | | 800,000 | | | | | | 100 | | |
Jeffrey Walker | | | | | 800,000 | | | | | | 100 | | |
| | | | | | | | | | | | | | | After the Business Combination | | |||||||||||||||||||||
| | | Before the Business Combination | | | Assuming No Redemption | | | Assuming Maximum Redemption | | |||||||||||||||||||||||||||
| | | Number of Shares of Adara | | | Number of Shares of Combined Company | | | Number of Shares of Combined Company | | |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1) | | | Common Stock | | | % | | | Common Stock | | | % | | | Common Stock | | | % | | ||||||||||||||||||
Directors and Executive Officers of Adara prior to the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Thomas Finke(4) | | | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0%(4) | | |
Paul G. Porter(3) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
W. Tom Donaldson(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Frank Quintero(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Dylan Glenn(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Beatriz Acevedo-Greiff(4) | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of Adara as a Group prior to the Business Combination (6 Individuals) | | | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
Five Percent Holders of Adara prior to the Business Combination: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adara Sponsor LLC(2)(6) | | | | | 2,825,000 | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
Hudson Bay Capital Management LP(7) | | | | | 750,000 | | | | | | 5.2% | | | | | | 750,000 | | | | | | 1.2% | | | | | | 750,000 | | | | | | 1.5% | | |
Karpus Management, Inc.(8) | | | | | 897,571 | | | | | | 6.2% | | | | | | 897,571 | | | | | | 1.5% | | | | | | 897,571 | | | | | | 1.8% | | |
MMCAP International Inc. SPC(9) | | | | | 650,000 | | | | | | 4.5% | | | | | | 650,000 | | | | | | 1.1% | | | | | | 650,000 | | | | | | 1.3% | | |
CVI Investments, Inc.(10) | | | | | 500,000 | | | | | | 3.5% | | | | | | 500,000 | | | | | | * | | | | | | 500,000 | | | | | | * | | |
Directors and Executive Officers of the Combined Company After Consummation of the Business Combination | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Bruce Ogilvie(11)(12)(13) | | | | | — | | | | | | * | | | | | | 23,750,000 | | | | | | 38.9% | | | | | | 23,750,000 | | | | | | 46.6% | | |
Jeffrey Walker(11)(13) | | | | | — | | | | | | * | | | | | | 23,750,000 | | | | | | 38.9% | | | | | | 23,750,000 | | | | | | 46.6% | | |
John Kutch | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Paul Eibeler | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Terilea J. Wielenga | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Chris Nagelson | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
Thomas Finke | | | | | 2,875,000(5) | | | | | | 19.7% | | | | | | 6,070,000(5) | | | | | | 9.3% | | | | | | 6,070,000(5) | | | | | | 11.0% | | |
W. Tom Donaldson | | | | | — | | | | | | * | | | | | | — | | | | | | * | | | | | | — | | | | | | * | | |
All Directors and Executive Officers of the Combined Company as a Group (8 individuals) | | | | | 2,875,000(5) | | | | | | 19.7% | | | | | | 53,570,000(5) | | | | | | 82.3% | | | | | | 53,570,000(5) | | | | | | 97.1% | | |
| | | Units | | | Common Stock | | | Warrants | | |||||||||||||||||||||||||||
Quarter Ended | | | High | | | Low | | | High | | | Low | | | High | | | Low | | ||||||||||||||||||
2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31 | | | | $ | 10.09 | | | | | $ | 9.82 | | | | | $ | 9.90 | | | | | $ | 9.75 | | | | | $ | 0.50 | | | | | $ | 0.23 | | |
June 30 | | | | $ | 10.09 | | | | | $ | 9.85 | | | | | $ | 9.94 | | | | | $ | 9.80 | | | | | $ | 0.37 | | | | | $ | 0.05 | | |
September 30 | | | | $ | 10.13 | | | | | $ | 9.94 | | | | | $ | 9.97 | | | | | $ | 9.88 | | | | | $ | 0.35 | | | | | $ | 0.12 | | |
December 31 (through November 29, 2022) | | | | $ | 10.05 | | | | | $ | 10.02 | | | | | $ | 10.06 | | | | | $ | 9.95 | | | | | $ | 0.19 | | | | | $ | 0.05 | | |
2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
March 31(1) | | | | $ | 10.45 | | | | | $ | 9.72 | | | | | $ | 10.80 | | | | | $ | 9.59 | | | | | $ | 0.62 | | | | | $ | 0.50 | | |
June 30 | | | | $ | 10.15 | | | | | $ | 9.88 | | | | | $ | 10.00 | | | | | $ | 9.61 | | | | | $ | 1.00 | | | | | $ | 0.43 | | |
September 30 | | | | $ | 10.11 | | | | | $ | 9.64 | | | | | $ | 9.80 | | | | | $ | 9.61 | | | | | $ | 0.75 | | | | | $ | 0.46 | | |
December 31 | | | | $ | 10.13 | | | | | $ | 9.96 | | | | | $ | 9.88 | | | | | $ | 9.72 | | | | | $ | 0.61 | | | | | $ | 0.47 | | |
| | | Page | | |||
ALLIANCE FINANCIAL STATEMENTS | | | |||||
| | | | F-2 | | | |
| | | | F-3 | | | |
| | | | F-4 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-15 | | | |
| | | | F-17 | | | |
| | | | F-18 | | | |
| | | | F-19 | | | |
| | | | F-20 | | | |
| | | | F-21 | | | |
ADARA FINANCIAL STATEMENTS | | | | | | | |
| | | | F-38 | | | |
| | | | F-39 | | | |
| | | | F-40 | | | |
| | | | F-41 | | | |
| | | | F-42 | | | |
| | | | F-60 | | | |
| | | | F-61 | | | |
| | | | F-62 | | | |
| | | | F-63 | | | |
| | | | F-64 | | | |
| | | | F-65 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Net Revenues | | | | $ | 238,701 | | | | | $ | 293,202 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 213,233 | | | | | | 252,483 | | |
Operating Expenses | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 14,865 | | | | | | 13,260 | | |
Selling, General and Administrative Expense | | | | | 14,731 | | | | | | 13,778 | | |
Depreciation and Amortization | | | | | 1,636 | | | | | | 2,309 | | |
Transaction Costs | | | | | 640 | | | | | | (316) | | |
IC DISC Commissions | | | | | 1,389 | | | | | | 3,496 | | |
Total Operating Expenses | | | | | 33,261 | | | | | | 32,527 | | |
Operating (Loss) Income | | | | | (7,793) | | | | | | 8,192 | | |
Other Expenses | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 2,354 | | | | | | 728 | | |
Total Other Expenses | | | | | 2,354 | | | | | | 728 | | |
(Loss) Income Before Income Tax (Benefit) Expense | | | | | (10,147) | | | | | | 7,464 | | |
Income Tax (Benefit) Expense | | | | | (2,638) | | | | | | 1,791 | | |
Net (Loss) Income | | | | | (7,509) | | | | | | 5,673 | | |
Net (Loss) Income per Share – Basic and Diluted | | | | $ | (8.34) | | | | | $ | 6.30 | | |
Shares Used in Computing Net (Loss) Income per Share | | | | | 900 | | | | | | 900 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | $ | 809 | | | | | $ | 1,469 | | |
Trade Receivables, Net | | | | | 93,347 | | | | | | 98,699 | | |
Related Party Receivable | | | | | — | | | | | | 245 | | |
Inventory, Net | | | | | 286,943 | | | | | | 249,439 | | |
Other Current Assets | | | | | 10,438 | | | | | | 9,128 | | |
Total Current Assets | | | | | 391,537 | | | | | | 358,980 | | |
Property and Equipment, Net | | | | | 6,283 | | | | | | 3,284 | | |
Operating Lease Right-Of-Use Assets | | | | | 7,263 | | | | | | 8,360 | | |
Goodwill | | | | | 81,903 | | | | | | 79,903 | | |
Intangibles, Net | | | | | 26,782 | | | | | | 18,764 | | |
Other Long-Term Assets | | | | | 371 | | | | | | 3,748 | | |
Deferred Income Tax Receivable | | | | | 2,804 | | | | | | — | | |
Total Assets | | | | $ | 516,943 | | | | | $ | 473,039 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable | | | | $ | 200,934 | | | | | $ | 198,187 | | |
Accrued Expenses | | | | | 14,274 | | | | | | 11,573 | | |
Current Portion of Operating Lease Obligations | | | | | 4,268 | | | | | | 4,453 | | |
Revolving Credit Facility, Net | | | | | — | | | | | | 135,968 | | |
Income Taxes Payable | | | | | — | | | | | | 418 | | |
Total Current Liabilities | | | | | 219,476 | | | | | | 350,599 | | |
Revolving Credit Facility, Net | | | | | 183,524 | | | | | | — | | |
Debt, Non- Current | | | | | 3,377 | | | | | | 3,377 | | |
Operating Lease Obligations, Non-Current | | | | | 3,876 | | | | | | 4,864 | | |
Deferred Tax Liability | | | | | 5,271 | | | | | | 5,271 | | |
Total Liabilities | | | | | 415,524 | | | | | | 364,111 | | |
Commitments and Contingencies (Note 12) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1000 shares Issued 957 Shares, Outstanding 900 Shares as of September 30, 2022, and June 30, 2022 | | | | | | | | | | | | | |
Paid In Capital | | | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost | | | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss | | | | | (66) | | | | | | (66) | | |
Retained Earnings | | | | | 64,159 | | | | | | 71,668 | | |
Total Stockholders’ Equity | | | | | 101,419 | | | | | | 108,928 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 516,943 | | | | | $ | 473,039 | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Loss | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Net Loss | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,509) | | | | | | (7,509) | | |
Balances at September 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 64,159 | | | | | $ | 101,419 | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Loss | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,673 | | | | | | 5,673 | | |
Balances at September 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 48,722 | | | | | $ | 85,975 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net (Loss) Income | | | | $ | (7,509) | | | | | $ | 5,673 | | |
Adjustments to Reconcile Net Income to | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities: | | | | | | | | | | | | | |
Depreciation of Property and Equipment | | | | | 622 | | | | | | 1,018 | | |
Amortization of Intangible Assets | | | | | 1,014 | | | | | | 1,291 | | |
Amortization of Deferred Financing Costs (Included in Interest) | | | | | 208 | | | | | | 42 | | |
Bad Debt Expense | | | | | 178 | | | | | | 135 | | |
Changes in Assets and Liabilities, Net of Acquisitions | | | | | | | | | | | | | |
Trade Receivables | | | | | 8,462 | | | | | | 4,515 | | |
Related Party Receivable | | | | | 245 | | | | | | 782 | | |
Inventory | | | | | (27,025) | | | | | | (59,960) | | |
Income Taxes Payable\Receivable | | | | | (3,226) | | | | | | (1,096) | | |
Operating Lease Right-Of-Use Assets | | | | | 1,097 | | | | | | 970 | | |
Operating Lease Obligations | | | | | (5,216) | | | | | | (1,438) | | |
Other Assets | | | | | 2,345 | | | | | | (3,779) | | |
Accounts Payable | | | | | (21,848) | | | | | | (20,817) | | |
Accrued Expenses | | | | | 2,477 | | | | | | 2,788 | | |
Net Cash Used in Operating Activities | | | | | (48,176) | | | | | | (69,879) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Cash Paid for Business Acquisitions, Net of Cash Acquired | | | | | 1 | | | | | | — | | |
Net Cash Provided by Investing Activities | | | | | 1 | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Payments on Seller Notes | | | | | — | | | | | | (3,750) | | |
Payments on Revolving Credit Facility | | | | | (230,934) | | | | | | (281,665) | | |
Borrowings on Revolving Credit Facility | | | | | 278,449 | | | | | | 353,711 | | |
Net Cash Provided by Financing Activities | | | | | 47,515 | | | | | | 68,296 | | |
Net Decrease in Cash and Cash Equivalents | | | | | (660) | | | | | | (1,583) | | |
Cash, Beginning of the Period | | | | | 1,469 | | | | | | 4,028 | | |
Cash, End of the Period | | | | $ | 809 | | | | | $ | 2,445 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | |
Cash Paid for Interest | | | | $ | 2,013 | | | | | $ | 715 | | |
Cash Paid for Income Taxes | | | | | 293 | | | | | | 4,028 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | |
Fixed Asset Financed with debt | | | | | 3,377 | | | | | | — | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Trade receivables | | | | $ | 96,398 | | | | | $ | 101,064 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts | | | | | (667) | | | | | | (558) | | |
Sales returns reserve, net | | | | | (1,761) | | | | | | (1,898) | | |
Customer Rebate and Discount Reserve | | | | | (623) | | | | | | 90 | | |
Total Allowances | | | | | (3,051) | | | | | | (2,366) | | |
Trade Receivables, Net | | | | $ | 93,347 | | | | | $ | 98,698 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Customer #1 | | | | | 20.5% | | | | | | 21.8% | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Customer #1 | | | | | 14.5% | | | | | | 21.4% | | |
Customer #2 | | | | | 11.0% | | | | | | — | | |
Customer #3 | | | | | 10.4% | | | | | | 14.2% | | |
Total | | | | | 35.9% | | | | | | 35.6% | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Inventory | | | | $ | 293,528 | | | | | $ | 255,236 | | |
Less: Reserves | | | | | (6,584) | | | | | | (5,797) | | |
Inventory, Net | | | | $ | 286,943 | | | | | $ | 249,439 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property | | | | $ | 2,445 | | | | | $ | 2,443 | | |
Prepaid Insurance | | | | | 5 | | | | | | 431 | | |
Prepaid Acquisitions | | | | | 2,373 | | | | | | 2,243 | | |
Prepaid Freight | | | | | 475 | | | | | | 216 | | |
Prepaid Manufacturing Components | | | | | 14 | | | | | | 79 | | |
Prepaid Rent | | | | | 817 | | | | | | | | |
Prepaid Maintenance | | | | | 1,072 | | | | | | 885 | | |
Prepaid Shipping Supplies | | | | | 3,237 | | | | | | 2,832 | | |
Total Other Assets – Current | | | | $ | 10,438 | | | | | $ | 9,129 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits | | | | $ | 371 | | | | | $ | 3,748 | | |
Total Other Assets – Long Term | | | | $ | 371 | | | | | $ | 3,748 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements | | | | $ | 1,680 | | | | | $ | 1,680 | | |
Machinery and Equipment | | | | | 19,440 | | | | | | 19,440 | | |
Furniture and Fixtures | | | | | 3,530 | | | | | | 3,530 | | |
Capitalized Software | | | | | 11,452 | | | | | | 11,451 | | |
Equipment Under Capital Leases | | | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment | | | | | 2,662 | | | | | | 2,662 | | |
Construction in Progress | | | | | 3,775 | | | | | | 154 | | |
| | | | | 55,456 | | | | | | 51,834 | | |
Less: Accumulated Depreciation and Amortization | | | | | (49,173) | | | | | | (48,550) | | |
Total Property and Equipment, Net | | | | $ | 6,283 | | | | | $ | 3,284 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Goodwill: | | | | $ | 79,903 | | | | | $ | 79,903 | | |
Additions to Goodwill | | | | | 2,000 | | | | | | | | |
Goodwill | | | | $ | 81,903 | | | | | $ | 79,903 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | |
Customer Relationships | | | | $ | 19,974 | | | | | $ | 14,633 | | |
Trade Name – Alliance | | | | | 380 | | | | | | 634 | | |
Covenant Not to Compete | | | | | 3 | | | | | | 4 | | |
Mecca Customer Relationships | | | | | 3,357 | | | | | | 3.932 | | |
Customer List | | | | | 4,082 | | | | | | 4,724 | | |
Total | | | | $ | 27,796 | | | | | $ | 23,927 | | |
Accumulated Amortization | | | | | (1,014) | | | | | | (1,291) | | |
Intangible Assets, Net | | | | $ | 26,782 | | | | | $ | 22,636 | | |
($ in thousands) | | | Intangible Assets | | |||
Year Ended June 30 | | | | | | | |
2023 | | | | $ | 3,795 | | |
2024 | | | | | 4,223 | | |
2025 | | | | | 3,651 | | |
2026 | | | | | 3,339 | | |
2027 | | | | | 3,289 | | |
Thereafter | | | | | 8,485 | | |
Total Expected Amortization | | | | $ | 26,782 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Marketing Funds Accruals | | | | $ | 1,519 | | | | | $ | 2,738 | | |
Payroll and Payroll Tax Accruals | | | | | 3,590 | | | | | | 3,904 | | |
Accrued ICDISC | | | | | 5,148 | | | | | | 3,759 | | |
Accruals for Other Expenses | | | | | 4,017 | | | | | | 1,172 | | |
Total Accrued Expenses | | | | $ | 14,274 | | | | | $ | 11,573 | | |
($ in thousands) | | | September 30, 2022 | | | June 30, 2022 | | ||||||
Bank of America Revolving Credit Agreement | | | | $ | 183,691 | | | | | $ | 136,176 | | |
Less: Deferred Finance Costs | | | | | (167) | | | | | | (208) | | |
Revolving Credit, Net | | | | $ | 183,524 | | | | | $ | 135,968 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||
Lease cost | | | | | | | | | | | | | |
Finance Lease Costs: | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets | | | | $ | 51 | | | | | $ | 296 | | |
Interest on Lease Liabilities | | | | | 4 | | | | | | 10 | | |
Capitalized Operating Lease Cost | | | | | 1,095 | | | | | | 1,131 | | |
Short Term Lease Cost | | | | | 1 | | | | | | — | | |
Total Lease Cost | | | | $ | 1,151 | | | | | $ | 1,438 | | |
Other Information | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases | | | | $ | — | | | | | $ | 12 | | |
Operating Cash Flows from Capitalized Operating Leases | | | | | 1,176 | | | | | | 1,179 | | |
Financing Cash Flows from Finance Leases | | | | | — | | | | | | 489 | | |
Net ROU Remeasurement | | | | | — | | | | | | 108 | | |
| | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2022 | | ||||||
Weighted-Average Remaining Lease Term – finance leases (in years) | | | | | 1.83 | | | | | | 1.83 | | |
Weighted average remaining lease term – Capitalized Operating leases (in Years) | | | | | 2.13 | | | | | | 3.00 | | |
Weighted-Average Discount Rate – Finance Leases | | | | | 3.70 | | | | | | 3.59 | | |
Weighted-Average Discount Rate – Capitalized Operating Leases | | | | | 4.10 | | | | | | 4.09 | | |
($ in thousands) | | | Operating Leases | | |||
2023 | | | | | 4,244 | | |
2024 | | | | | 3,780 | | |
2025 | | | | | 624 | | |
2026 | | | | | 99 | | |
Total Lease Payments | | | | | 8,747 | | |
Less Imputed Interest | | | | | (357) | | |
Total | | | | $ | 8,390 | | |
($ in thousands) | | | Three Months Ended September 30, 2022 | | |||
Revenue | | | | $ | 3,819 | | |
Net Loss | | | | | (273) | | |
($ in thousands) | | | | | | | |
Cash Acquired | | | | $ | 1 | | |
Trade Receivables | | | | | 3,289 | | |
Inventory | | | | | 10,479 | | |
Goodwill | | | | | 2,000 | | |
Intangibles | | | | | 9,031 | | |
Other Assets | | | | | 19 | | |
Accounts Payable | | | | | (24,819) | | |
Total Purchase Price | | | | $ | — | | |
($ in thousands, except shares) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | |||||||||
Net Revenues | | | | $ | 1,417,377 | | | | | $ | 1,323,567 | | | | | $ | 775,596 | | |
Cost of Revenues (excluding depreciation and amortization) | | | | | 1,234,995 | | | | | | 1,140,885 | | | | | | 656,485 | | |
Operating Expenses | | | | | | | | | | | | | | | | | | | |
Distribution and Fulfillment Expense | | | | | 64,260 | | | | | | 56,885 | | | | | | 35,877 | | |
Selling, General and Administrative Expense | | | | | 58,110 | | | | | | 57,249 | | | | | | 50,007 | | |
Depreciation and Amortization | | | | | 8,259 | | | | | | 11,651 | | | | | | 15,784 | | |
Transaction Costs | | | | | (251) | | | | | | 3,509 | | | | | | — | | |
IC DISC Commissions | | | | | 9,907 | | | | | | 5,394 | | | | | | 8,182 | | |
Loss on Disposal of Property and Equipment | | | | | — | | | | | | 87 | | | | | | — | | |
Total Operating Expenses | | | | | 140,285 | | | | | | 134,775 | | | | | | 109,850 | | |
Operating Income | | | | | 42,098 | | | | | | 47,907 | | | | | | 9,261 | | |
Other Expenses | | | | | | | | | | | | | | | | | | | |
Interest Expense, Net | | | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Total Other Expenses | | | | | 4,056 | | | | | | 2,938 | | | | | | 3,524 | | |
Income Before Provision for Income Tax Expense | | | | | 38,042 | | | | | | 44,969 | | | | | | 5,737 | | |
Income Tax Expense | | | | | 9,423 | | | | | | 10,791 | | | | | | 376 | | |
Net Income | | | | | 28,619 | | | | | | 34,178 | | | | | | 5,361 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | |
Foreign Currency Translation | | | | | 7 | | | | | | 15 | | | | | | (318) | | |
Total Comprehensive Income | | | | $ | 28,626 | | | | | | 34,193 | | | | | | 5,043 | | |
Net Income per Share – Basic and Diluted | | | | $ | 31.80 | | | | | $ | 37.98 | | | | | $ | 5.96 | | |
Shares Used in Computing Net Income per Share | | | | | 900 | | | | | | 900 | | | | | | 900 | | |
Distributions of Paid In Capital per Share | | | | $ | — | | | | | $ | 7.57 | | | | | $ | — | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Assets | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and Cash Equivalents | | | | $ | 1,469 | | | | | $ | 4,028 | | |
Trade Receivables, Net | | | | | 98,699 | | | | | | 111,332 | | |
Related Party Receivable | | | | | 245 | | | | | | 1,476 | | |
Inventory, Net | | | | | 249,439 | | | | | | 141,661 | | |
Other Current Assets | | | | | 9,128 | | | | | | 7,287 | | |
Total Current Assets | | | | | 358,980 | | | | | | 265,784 | | |
Property and Equipment, Net | | | | | 3,284 | | | | | | 6,330 | | |
Operating Lease Right-Of-Use Assets | | | | | 8,360 | | | | | | 12,658 | | |
Goodwill | | | | | 79,903 | | | | | | 79,903 | | |
Intangibles, Net | | | | | 18,764 | | | | | | 23,927 | | |
Other Long-Term Assets | | | | | 3,748 | | | | | | 361 | | |
Total Assets | | | | $ | 473,039 | | | | | $ | 388,963 | | |
Liabilities and Stockholders’ Equity | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Accounts Payable | | | | $ | 198,187 | | | | | $ | 214,332 | | |
Accrued Expenses | | | | | 11,573 | | | | | | 13,555 | | |
Current Portion of Financing Lease Obligations | | | | | — | | | | | | 811 | | |
Current Portion of Operating Lease Obligations | | | | | 4,453 | | | | | | 4,622 | | |
Seller Note, Current | | | | | — | | | | | | 3,000 | | |
Income Taxes Payable | | | | | 418 | | | | | | 2,286 | | |
Revolving Credit Facility, Net | | | | | 135,968 | | | | | | — | | |
Total Current Liabilities | | | | | 350,599 | | | | | | 238,606 | | |
Revolving Credit Facility, Net | | | | | — | | | | | | 53,580 | | |
Debt, Non-Current | | | | | 3,377 | | | | | | | | |
Seller Note, Non-Current | | | | | — | | | | | | 750 | | |
Operating Lease Obligations | | | | | 4,864 | | | | | | 9,277 | | |
Deferred Tax Liability | | | | | 5,271 | | | | | | 6,448 | | |
Total Liabilities | | | | | 364,111 | | | | | | 308,661 | | |
Commitments and Contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock: No Par Value, Authorized 1,000 shares | | | | | | | | | | | | | |
Issued 957 Shares, Outstanding 900 Shares as of June 30, 2022, and 2021 | | | | | | | | | | | | | |
Paid In Capital | | | | | 40,000 | | | | | | 40,000 | | |
Treasury Stock, 57 Shares Carried at Cost | | | | | (2,674) | | | | | | (2,674) | | |
Accumulated Other Comprehensive Loss | | | | | (66) | | | | | | (73) | | |
Retained Earnings | | | | | 71,668 | | | | | | 43,049 | | |
Total Stockholders’ Equity | | | | | 108,928 | | | | | | 80,302 | | |
Total Liabilities and Stockholders’ Equity | | | | $ | 473,039 | | | | | $ | 388,963 | | |
($ in thousands) | | | Year Ended June 30, 2022 | | | Year Ended June 30, 2021 | | | Year Ended June 30, 2020 | | |||||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | | | | | | | |
Net Income | | | | $ | 28,619 | | | | | $ | 34,178 | | | | | $ | 5,361 | | |
Adjustments to Reconcile Net Income to | | | | | | | | | | | | | | | | | | | |
Cash provided by (Used In) Operating Activities: | | | | | | | | | | | | | | | | | | | |
Depreciation of Property and Equipment | | | | | 3,096 | | | | | | 5,623 | | | | | | 7,124 | | |
Amortization of Intangible Assets | | | | | 5,163 | | | | | | 5,772 | | | | | | 8,660 | | |
Amortization of Deferred Financing Costs (Included in Interest) | | | | | 165 | | | | | | 334 | | | | | | 358 | | |
Bad Debt Expense | | | | | 496 | | | | | | 225 | | | | | | 155 | | |
Deferred Income Taxes | | | | | (1,177) | | | | | | 1,543 | | | | | | 1,286 | | |
Loss on Disposal of Fixed Assets | | | | | — | | | | | | 87 | | | | | | — | | |
Changes in Assets and Liabilities, Net of Acquisitions | | | | | | | | | | | | | | | | | | | |
Trade Receivables | | | | | 12,138 | | | | | | 8,053 | | | | | | 13,684 | | |
Related Party Receivable | | | | | 1,231 | | | | | | 157 | | | | | | (1,633) | | |
Inventory | | | | | (107,778) | | | | | | (8,617) | | | | | | 35,821 | | |
Income Taxes Payable\Receivable | | | | | (1,867) | | | | | | 4,453 | | | | | | (1,187) | | |
Operating Lease Right-Of-Use Assets | | | | | 4,299 | | | | | | (817) | | | | | | 3,137 | | |
Operating Lease Obligations | | | | | (4,583) | | | | | | 664 | | | | | | (3,284) | | |
Other Assets | | | | | (5,230) | | | | | | 1,980 | | | | | | 3,228 | | |
Accounts Payable | | | | | (16,146) | | | | | | 18,686 | | | | | | (38,761) | | |
Accrued Expenses | | | | | (1,980) | | | | | | 2,395 | | | | | | (6,560) | | |
Net Cash Provided by (Used in) Operating Activities | | | | | (83,554) | | | | | | 74,718 | | | | | | 27,391 | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | | | | | | | |
Capital Expenditures | | | | | (50) | | | | | | (650) | | | | | | (2,702) | | |
Cash Paid for Business Acquisitions, Net of Cash Acquired | | | | | — | | | | | | (65,409) | | | | | | (2,561) | | |
Net Cash Used in Investing Activities | | | | | (50) | | | | | | (66,059) | | | | | | (5,263) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | | | | | | | |
Payments on Seller Notes | | | | | (3,750) | | | | | | (4,750) | | | | | | — | | |
Payments on Revolving Credit Facility | | | | | (1,346,442) | | | | | | (1,310,333) | | | | | | (724,783) | | |
Borrowings on Revolving Credit Facility | | | | | 1,428,664 | | | | | | 1,318,518 | | | | | | 698,670 | | |
Payments on Financing Leases | | | | | (811) | | | | | | (2,101) | | | | | | (2,478) | | |
Proceeds from Debt | | | | | 3,377 | | | | | | — | | | | | | 1,378 | | |
Capital Dividends | | | | | — | | | | | | (6,811) | | | | | | — | | |
Capital Contribution | | | | | — | | | | | | — | | | | | | 3,860 | | |
Deferred Financing Costs | | | | | — | | | | | | (500) | | | | | | — | | |
Net Cash Provided by (Used In) Financing Activities | | | | | 81,038 | | | | | | (5,977) | | | | | | (23,353) | | |
Net Increase (Decrease) in Cash and Cash Equivalents | | | | | (2,566) | | | | | | 2,682 | | | | | | (1,225) | | |
Net Effect of Currency Translation on Cash and Cash Equivalents | | | | | 7 | | | | | | 15 | | | | | | (318) | | |
Cash, Beginning of the Period | | | | | 4,028 | | | | | | 1,331 | | | | | | 2,874 | | |
Cash, End of the Period | | | | $ | 1,469 | | | | | $ | 4,028 | | | | | $ | 1,331 | | |
Supplemental disclosure for Cash Flow Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Interest | | | | $ | 2,878 | | | | | $ | 2,079 | | | | | $ | 3,272 | | |
Cash Paid for Income Taxes | | | | $ | 9,345 | | | | | $ | 6,540 | | | | | $ | 362 | | |
Supplemental Disclosure for Non-Cash Investing Activities | | | | | | | | | | | | | | | | | | | |
Property and Equipment Acquired Under Capital Leases | | | | $ | — | | | | | $ | — | | | | | $ | 1,378 | | |
Issuance of Seller’s Note Related to Acquisition | | | | $ | — | | | | | $ | 8,500 | | | | | $ | — | | |
PPP Loan Forgiveness | | | | $ | — | | | | | $ | 1,740 | | | | | $ | — | | |
($ in thousands) | | | Common Stock Shares Issued | | | Paid In Capital | | | Cost of Treasury Stock | | | Accumulated Other Comprehensive Income (Loss) | | | Retained Earnings | | | Total | | ||||||||||||||||||
Balances at June 30, 2019 | | | | | 900 | | | | | $ | 42,951 | | | | | $ | (2,675) | | | | | $ | 230 | | | | | $ | 3,510 | | | | | $ | 44,016 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | (318) | | | | | | — | | | | | | (318) | | |
Capital Contribution | | | | | — | | | | | | 3,860 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,860 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,361 | | | | | | 5,361 | | |
Balances at June 30, 2020 | | | | | 900 | | | | | $ | 46,811 | | | | | $ | (2,675) | | | | | $ | (88) | | | | | $ | 8,871 | | | | | $ | 52,919 | | |
Other Comprehensive Income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | 15 | | | | | | — | | | | | | 15 | | |
Distributions of Paid In Capital | | | | | — | | | | | | (6,811) | | | | | | — | | | | | | — | | | | | | — | | | | | | (6,811) | | |
Purchase of Treasury Stock | | | | | — | | | | | | — | | | | | | 1 | | | | | | — | | | | | | — | | | | | | 1 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 34,178 | | | | | | 34,178 | | |
Balances at June 30, 2021 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (73) | | | | | $ | 43,049 | | | | | $ | 80,302 | | |
Currency Translation Adjustment | | | | | — | | | | | | — | | | | | | — | | | | | | 7 | | | | | | — | | | | | | 7 | | |
Net Income | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 28,619 | | | | | | 28,619 | | |
Balances at June 30, 2022 | | | | | 900 | | | | | $ | 40,000 | | | | | $ | (2,674) | | | | | $ | (66) | | | | | $ | 71,668 | | | | | $ | 108,928 | | |
Asset Class | | | Useful Life | |
Leasehold Improvements | | | 5 – 10 years | |
Machinery and Equipment | | | 3 – 7 years | |
Furniture and Fixtures | | | 5 – 7 years | |
Capitalized Software | | | 1 – 3 years | |
Equipment Under Capital Leases | | | 5 years | |
Computer Equipment | | | 2 – 5 years | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Trade receivables | | | | $ | 101,064 | | | | | $ | 115,618 | | |
Less: | | | | | | | | | | | | | |
Allowances for Doubtful Accounts | | | | | (558) | | | | | | (1,145) | | |
Sales returns reserve, net | | | | | (1,898) | | | | | | (2,975) | | |
Customer Rebate and Discount Reserve | | | | | 90 | | | | | | (166) | | |
Total Allowances | | | | | (2,366) | | | | | | (4,286) | | |
Trade Receivables, Net | | | | $ | 98,699 | | | | | $ | 111,332 | | |
| | | Year Ended | | |||||||||||||||
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | | June 30, 2020 | | |||||||||
Customer #1 | | | | | 23.6% | | | | | | 23.7% | | | | | | 19.6% | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Customer #1 | | | | | 21.4% | | | | | | 12.2% | | |
Customer #2 | | | | | 14.2% | | | | | | * | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Inventory | | | | $ | 255,236 | | | | | $ | 145,740 | | |
Less: Reserves | | | | | (5,797) | | | | | | (4,079) | | |
Inventory, Net | | | | $ | 249,439 | | | | | $ | 141,661 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Other Assets – Current | | | | | | | | | | | | | |
Prepaid Intellectual Property | | | | $ | 2,443 | | | | | $ | 3,411 | | |
Prepaid Insurance | | | | | 431 | | | | | | 2,011 | | |
Prepaid Acquisitions | | | | | 2,243 | | | | | | — | | |
Prepaid Freight | | | | | 216 | | | | | | | | |
Prepaid Manufacturing Components | | | | | 79 | | | | | | 167 | | |
Prepaid Maintenance | | | | | 885 | | | | | | 165 | | |
Prepaid Shipping Supplies | | | | | 2,832 | | | | | | 1,533 | | |
Total Other Assets – Current | | | | $ | 9,129 | | | | | $ | 7,287 | | |
Other Assets – Long Term | | | | | | | | | | | | | |
Deposits | | | | $ | 3,748 | | | | | $ | 361 | | |
Total Other Assets – Long Term | | | | $ | 3,748 | | | | | $ | 361 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Property and Equipment | | | | | | | | | | | | | |
Leasehold Improvements | | | | $ | 1,680 | | | | | $ | 1,597 | | |
Machinery and Equipment | | | | | 19,440 | | | | | | 19,236 | | |
Furniture and Fixtures | | | | | 3,530 | | | | | | 2,622 | | |
Capitalized Software | | | | | 11,451 | | | | | | 11,422 | | |
Equipment Under Capital Leases | | | | | 12,917 | | | | | | 12,917 | | |
Computer Equipment | | | | | 2,662 | | | | | | 2,665 | | |
Construction in Progress | | | | | 154 | | | | | | 104 | | |
| | | | | 51,834 | | | | | | 50,563 | | |
Less: Accumulated Depreciation and Amortization | | | | | (48,550) | | | | | | (44,233) | | |
Total Property and Equipment, Net | | | | $ | 3,284 | | | | | $ | 6,330 | | |
($ in thousands) | | | Life (in yrs.) | | | Amortization Year Ended June 30, 2021 | | | June 30, 2021 | | | Amortization Year Ended June 30, 2022 | | | June 30, 2022 | | ||||||||||||
Identifiable Intangible Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Customer Relationships | | | 15 | | | | $ | (4,331) | | | | | $ | 14,633 | | | | | $ | (3,690) | | | | | $ | 10,943 | | |
Trade Name – Alliance | | | 10 | | | | | (382) | | | | | | 634 | | | | | | (254) | | | | | | 380 | | |
Covenant Not to Compete | | | 7 | | | | | (1) | | | | | | 4 | | | | | | (1) | | | | | | 3 | | |
Mecca Customer Relationships | | | 15 | | | | | (575) | | | | | | 3,932 | | | | | | (575) | | | | | | 3,357 | | |
Customer List | | | 10 – 15 | | | | | (739) | | | | | | 4,724 | | | | | | (643) | | | | | | 4,081 | | |
Total Identifiable Intangible Assets: | | | | | | | $ | (6,028) | | | | | $ | 23,927 | | | | | $ | (5,163) | | | | | $ | 18,764 | | |
($ in thousands) | | | Intangible Assets | | |||
Year Ended June 30 | | | | | | | |
2023 | | | | $ | 4,056 | | |
2024 | | | | | 3,470 | | |
2025 | | | | | 2,898 | | |
2026 | | | | | 2,586 | | |
2027 | | | | | 2,536 | | |
Thereafter | | | | | 3,218 | | |
Total Expected Amortization | | | | $ | 18,764 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Marketing Funds Accruals | | | | $ | 2,738 | | | | | $ | 1,294 | | |
Payroll and Payroll Tax Accruals | | | | | 3,904 | | | | | | 6,833 | | |
Accruals for Other Expenses | | | | | 4,931 | | | | | | 5,428 | | |
Total Accrued Expenses | | | | $ | 11,573 | | | | | $ | 13,555 | | |
($ in thousands) | | | June 30, 2022 | | | June 30, 2021 | | ||||||
Bank of America Revolving Credit Agreement | | | | $ | 136,176 | | | | | $ | 53,955 | | |
Less: Deferred Finance Costs | | | | | (208) | | | | | | (375) | | |
Revolving Credit, Net | | | | $ | 135,968 | | | | | $ | 53,580 | | |
| | | Year Ended June 30 | | |||||||||||||||
(In thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Income Tax Expense (Benefit): | | | | | | | | | | | | | | | | | | | |
Current: | | | | | | | | | | | | | | | | | | | |
Federal | | | | $ | 7,937 | | | | | $ | 7,201 | | | | | $ | (1,759) | | |
State | | | | | 2,663 | | | | | | 2,304 | | | | | | 849 | | |
Total Current | | | | $ | 10,599 | | | | | $ | 9,505 | | | | | $ | (910) | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal | | | | | (951) | | | | | | 1,070 | | | | | | 1,137 | | |
State | | | | | (226) | | | | | | 216 | | | | | | 149 | | |
Total Deferred | | | | | (1,177) | | | | | | 1,286 | | | | | | 1,286 | | |
Income Tax Expense | | | | $ | 9,423 | | | | | $ | 10,791 | | | | | $ | 376 | | |
| | | Year Ended June 30 | | | | | |||||||||||||||||||||||||||||||||
(In thousands) | | | 2022 | | | 2021 | | | 2020 | | | | | |||||||||||||||||||||||||||
Federal Income Tax Provision at Statutory Rate | | | | $ | 7,484 | | | | | | 21% | | | | | $ | 9,444 | | | | | | 21% | | | | | $ | 1,205 | | | | | | 21% | | | | | |
State Taxes, Net of Federal Benefits | | | | | 2,437 | | | | | | 6% | | | | | | 2,520 | | | | | | 6% | | | | | | 997 | | | | | | 17% | | | | | |
Meals Entertainments | | | | | — | | | | | | 0% | | | | | | 6 | | | | | | 0% | | | | | | 18 | | | | | | 0% | | | | | |
Foreign Derived Intangible Income | | | | | (618) | | | | | | -2% | | | | | | (802) | | | | | | -2% | | | | | | (598) | | | | | | -10% | | | | | |
NOL Carryback Refund Before AMT | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | (1,216) | | | | | | -21% | | | | | |
Debt Forgiveness and Interest Income | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | | — | | | | | | 0% | | | | | |
Other | | | | | 120 | | | | | | -1% | | | | | | (377) | | | | | | -1% | | | | | | (30) | | | | | | -1% | | | | | |
Income Tax Expense | | | | $ | 9,423 | | | | | | 24% | | | | | $ | 10,791 | | | | | | 24% | | | | | $ | 376 | | | | | | 6% | | | | | |
| | | Year Ended June 30 | | |||||||||
(In thousands) | | | 2022 | | | 2021 | | ||||||
Deferred Tax Assets: | | | | ||||||||||
Other Deferred (ICDISC) | | | | $ | 583 | | | | | $ | 245 | | |
Net Operating Losses | | | | | 30 | | | | | | 30 | | |
Bad Debt | | | | | 39 | | | | | | 83 | | |
Total Deferred Tax Assets | | | | | 652 | | | | | | 358 | | |
Deferred Tax Liabilities: | | | | | | | | | | | | | |
Inventory | | | | | (324) | | | | | | (875) | | |
Accruals Not Currently Deductible | | | | | (792) | | | | | | (98) | | |
Prepaids | | | | | (1,004) | | | | | | (1,224) | | |
Property and Equipment | | | | | (1,399) | | | | | | (1,924) | | |
Goodwill/Intangibles | | | | | (2,404) | | | | | | (2,685) | | |
Total Deferred Tax Liabilities | | | | | (5,923) | | | | | | (6,806) | | |
Net Deferred Tax Liability | | | | $ | (5,271) | | | | | $ | (6,448) | | |
($ in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Lease cost | | | | | | | | | | | | | | | | | | | |
Finance Lease Costs: | | | | | | | | | | | | | | | | | | | |
Amortization of Right-of-Use Assets | | | | $ | 675 | | | | | $ | 1,189 | | | | | $ | 1,095 | | |
Interest on Lease Liabilities | | | | | 27 | | | | | | 81 | | | | | | 125 | | |
Operating Lease Cost | | | | | 4,515 | | | | | | 4,789 | | | | | | 3,827 | | |
Short Term Lease Cost | | | | | 1,140 | | | | | | — | | | | | | — | | |
Variable Lease Cost | | | | | 1,633 | | | | | | 869 | | | | | | 680 | | |
Total Lease Cost | | | | $ | 7,990 | | | | | $ | 6,928 | | | | | $ | 5,727 | | |
($ in thousands) | | | 2022 | | | 2021 | | | 2020 | | |||||||||
Other Information | | | | | | | | | | | | | | | | | | | |
Cash Paid for Amounts Included in the Measurement of Lease Liabilities: | | | | | | | | | | | | | | | | | | | |
Operating Cash Flows from Financing Leases | | | | $ | 30 | | | | | $ | 86 | | | | | $ | 125 | | |
Operating Cash Flows from Operating Leases | | | | $ | 4,820 | | | | | $ | 4,944 | | | | | $ | 3,973 | | |
Financing Cash Flows from Finance Leases | | | | | 1,070 | | | | | | 1,931 | | | | | | 1,720 | | |
Right-of Use Assets Obtained in Exchange for New Finance Lease Liabilities | | | | | — | | | | | | — | | | | | | 1,561 | | |
Right-of Use Assets Obtained in Exchange for Capitalized Operating Lease Liabilities | | | | | — | | | | | | 3,640 | | | | | | 39 | | |
Net ROU Remeasurement | | | | | (651) | | | | | | 841 | | | | | | 169 | | |
| | | Year Ended June 30, | | |||||||||||||||
| | | 2022 | | | 2021 | | | 2020 | | |||||||||
Weighted-Average Remaining Lease Term – Operating Leases | | | | | 2.33 | | | | | | 1.63 | | | | | | 2.13 | | |
Weighted-Average Remaining Lease Term – Financing Leases | | | | | 2.06 | | | | | | 3.12 | | | | | | 4.09 | | |
Weighted-Average Discount Rate – Operating Leases | | | | | 4.10 | | | | | | 3.35 | | | | | | 3.26 | | |
Weighted-Average Discount Rate – Financing Leases | | | | | 3.70 | | | | | | 4.46 | | | | | | 4.45 | | |
($ in thousands) | | | Operating Leases | | |||
2023 | | | | | 4,403 | | |
2024 | | | | | 4,019 | | |
2025 | | | | | 1,402 | | |
2026 | | | | | 99 | | |
Total Lease Payments | | | | | 9,923 | | |
Less Imputed Interest | | | | | (606) | | |
Total | | | | $ | 9,317 | | |
($ in thousands) | | | Nine Months Ended June 30, 2021 | | |||
Revenue | | | | $ | 405,714 | | |
Net Income | | | | | 19,567 | | |
| Cash at Close | | | | $ | 71,859 | | |
| Note to Seller | | | | | 8,500 | | |
| | | | | $ | 80,359 | | |
($ in thousands) | | | | | | | |
Cash Acquired | | | | $ | 6,450 | | |
Trade Receivables | | | | | 48,729 | | |
Inventory | | | | | 70,267 | | |
Other Assets | | | | | 1,779 | | |
Accounts Payable | | | | | (48,770) | | |
Accrued Expenses | | | | | (734) | | |
Property and Equipment | | | | | 2,638 | | |
Total Purchase Price | | | | $ | 80,359 | | |
| | | Year Ended | | |||||||||
($ in thousands) | | | June 30, 2021 | | | June 30, 2020 | | ||||||
Revenue | | | | $ | 1,414,039 | | | | | $ | 1,195,005 | | |
Net Income | | | | | 42,542 | | | | | | 3,402 | | |
| | | September 30, 2022 | | | December 31, 2021 | | ||||||
| | | (Unaudited) | | | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 29,502 | | | | | $ | 724,410 | | |
Prepaid expenses | | | | | 53,333 | | | | | | 199,166 | | |
Total Current Assets | | | | | 82,835 | | | | | | 923,576 | | |
Marketable securities held in Trust Account | | | | | 116,831,001 | | | | | | 116,160,281 | | |
TOTAL ASSETS | | | | $ | 116,913,836 | | | | | $ | 117,083,857 | | |
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accrued expenses | | | | $ | 1,050,428 | | | | | $ | 440,245 | | |
Income taxes payable | | | | | 69,477 | | | | | | — | | |
Promissory note | | | | | 436,077 | | | | | | — | | |
Total Current Liabilities | | | | | 1,555,982 | | | | | | 440,245 | | |
Warrant Liabilities | | | | | 1,884,800 | | | | | | 4,860,800 | | |
TOTAL LIABILITIES | | | | | 3,440,782 | | | | | | 5,301,045 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 shares at $10.12 and $10.10 redemption value at September 30, 2022 and December 31, 2021, respectively | | | | | 116,411,474 | | | | | | 116,150,000 | | |
STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | | | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized | | | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding at September 30, 2022 and December 31, 2021 | | | | | 288 | | | | | | 288 | | |
Additional paid-in capital | | | | | — | | | | | | — | | |
Accumulated deficit | | | | | (2,938,708) | | | | | | (4,367,476) | | |
TOTAL STOCKHOLDERS’ DEFICIT | | | | | (2,938,420) | | | | | | (4,367,188) | | |
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT | | | | $ | 116,913,836 | | | | | $ | 117,083,857 | | |
| | | Three Months Ended September 30, | | | Nine Months Ended September 30, | | ||||||||||||||||||
| | | 2022 | | | 2021 | | | 2022 | | | 2021 | | ||||||||||||
Operating and formation costs | | | | $ | 634,642 | | | | | $ | 217,525 | | | | | $ | 1,887,001 | | | | | $ | 632,695 | | |
Loss from operations | | | | | (634,642) | | | | | | (217,525) | | | | | | (1,887,001) | | | | | | (632,695) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 512,825 | | | | | | 2,928 | | | | | | 670,720 | | | | | | 7,352 | | |
Transaction costs incurred in connection with IPO | | | | | — | | | | | | — | | | | | | — | | | | | | (86,544) | | |
Change in fair value of warrants liabilities | | | | | (99,200) | | | | | | 1,256,100 | | | | | | 2,976,000 | | | | | | 3,801,300 | | |
Other income, net | | | | | 413,625 | | | | | | 1,259,028 | | | | | | 3,646,720 | | | | | | 3,722,108 | | |
Income (loss) before provision for income taxes | | | | | (221,017) | | | | | | 1,041,503 | | | | | | 1,759,719 | | | | | | 3,089,413 | | |
Provision for income taxes | | | | | (69,477) | | | | | | — | | | | | | (69,477) | | | | | | — | | |
Net (loss) income | | | | $ | (290,494) | | | | | $ | 1,041,503 | | | | | $ | 1,690,242 | | | | | $ | 3,089,413 | | |
Weighted average shares outstanding, Class A common stock | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 11,500,000 | | | | | | 9,772,894 | | |
Basic and diluted net (loss) income per share, Class A common stock | | | | $ | (0.02) | | | | | $ | 0.07 | | | | | $ | 0.12 | | | | | $ | 0.25 | | |
Weighted average shares outstanding, Class B common stock | | | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,875,000 | | | | | | 2,817,308 | | |
Basic and diluted net (loss) income per share, Class B common stock | | | | $ | (0.02) | | | | | $ | 0.07 | | | | | $ | 0.12 | | | | | $ | 0.25 | | |
| | | Class B Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Deficit | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2022 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (4,367,476) | | | | | $ | (4,367,188) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,122,187 | | | | | | 1,122,187 | | |
Balance – March 31, 2022 | | | | | 2,875,000 | | | | | | 288 | | | | | | — | | | | | | (3,245,289) | | | | | | (3,245,001) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 858,549 | | | | | | 858,549 | | |
Balance – June 30, 2022 | | | | | 2,875,000 | | | | | | 288 | | | | | | — | | | | | | (2,386,740) | | | | | | (2,386,452) | | |
Change in value of Class A common stock subject to possible redemption | | | | | — | | | | | | — | | | | | | — | | | | | | (261,474) | | | | | | (261,474) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (290,494) | | | | | | (290,494) | | |
Balance – September 30, 2022 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (2,938,708) | | | | | $ | (2,938,420) | | |
| | | Class B Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity (Deficit) | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – January 1, 2021 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (5,476) | | | | | $ | 19,524 | | |
Accretion for Class A common stock to redemption | | | | | — | | | | | | — | | | | | | (313,212) | | | | | | (7,606,206) | | | | | | (7,919,418) | | |
Cash paid in excess of fair value of private warrants | | | | | — | | | | | | — | | | | | | 288,400 | | | | | | — | | | | | | 288,400 | | |
Issuance of Representative Warrants | | | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 3,853,881 | | | | | | 3,853,881 | | |
Balance – March 31, 2021 | | | | | 2,875,000 | | | | | | 288 | | | | | | — | | | | | | (3,757,801) | | | | | | (3,757,513) | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (1,805,971) | | | | | | (1,805,971) | | |
Balance – June 30, 2021 | | | | | 2,875,000 | | | | | | 288 | | | | | | — | | | | | | (5,563,772) | | | | | | (5,563,484) | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 1,041,503 | | | | | | 1,041,503 | | |
Balance – September 30, 2021 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (4,522,269) | | | | | $ | (4,521,981) | | |
| | | Nine Months Ended September 30, 2022 | | | Nine Months Ended September 30, 2021 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income | | | | $ | 1,690,242 | | | | | $ | 3,089,413 | | |
Adjustments to reconcile net income to net cash used in operating activities: | | | | | | | | | | | | | |
Change in fair value of warrant liabilities | | | | | (2,976,000) | | | | | | (3,801,300) | | |
Transaction costs incurred in connection with IPO | | | | | — | | | | | | 86,544 | | |
Interest earned on marketable securities held in Trust Account | | | | | (670,720) | | | | | | (7,352) | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 145,833 | | | | | | 162,288 | | |
Accrued expenses | | | | | 610,183 | | | | | | 250,309 | | |
Income taxes payable | | | | | 69,477 | | | | | | — | | |
Net cash used in operating activities | | | | | (1,130,985) | | | | | | (220,098) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | — | | | | | | (116,150,000) | | |
Net cash used in investing activities | | | | | — | | | | | | (116,150,000) | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from sale of Units, net of underwriting discounts paid | | | | | — | | | | | | 114,000,000 | | |
Proceeds from sale of Private Placements Warrants | | | | | — | | | | | | 4,120,000 | | |
Proceeds from sale of Unit Purchase Option | | | | | — | | | | | | 100 | | |
Proceeds from promissory note | | | | | 436,077 | | | | | | — | | |
Repayment of promissory note – related party | | | | | — | | | | | | (600,000) | | |
Payment of offering costs | | | | | — | | | | | | (407,352) | | |
Net cash provided by financing activities | | | | | 436,077 | | | | | | 117,112,748 | | |
Net Change in Cash | | | | | (694,908) | | | | | | 742,650 | | |
Cash – Beginning of period | | | | | 724,410 | | | | | | 102,296 | | |
Cash – End of period | | | | $ | 29,502 | | | | | $ | 844,946 | | |
| Gross proceeds | | | | $ | 115,000,000 | | |
| Less: | | | | | | | |
| Proceeds allocated to Public Warrants | | | | | (5,290,000) | | |
| Class A common stock issuance at cost | | | | | (1,479,418) | | |
| Plus: | | | | | | | |
| Accretion of carrying value to redemption value | | | | | 7,919,418 | | |
| Class A common stock subject to possible redemption, December 31, 2021 | | | | | 116,150,000 | | |
| Plus: | | | | | | | |
| Accretion of carrying value to redemption value | | | | | 261,474 | | |
| Class A common stock subject to possible redemption, September 30, 2022 | | | | $ | 116,411,474 | | |
| | | Three Months Ended June 30, 2022 | | | Basic Dilutive Three Months Ended June 30, 2021 | | | Dilutive Three Months Ended June 30, 2021 | | |||||||||||||||||||||||||||
| | | Class A | | | Class B | | | Class A | | | Class B | | | Class A | | | Class B | | ||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income (loss), as adjusted | | | | $ | 686,839 | | | | | $ | 171,710 | | | | | $ | (1,444,777) | | | | | $ | (361,194) | | | | | $ | (1,444,777) | | | | | $ | (361,194) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding | | | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 11,500,000 | | | | | | 2,875,000 | | |
Basic and diluted net income (loss) per common shares | | | | $ | 0.06 | | | | | $ | 0.06 | | | | | $ | (0.13) | | | | | $ | (0.13) | | | | | $ | (0.13) | | | | | $ | (0.13) | | |
| | | Six Months Ended June 30, 2022 | | | Basic Dilutive Six Months Ended June 30, 2021 | | | Dilutive Six Months Ended June 30, 2021 | | |||||||||||||||||||||||||||
| | | Class A | | | Class B | | | Class A | | | Class B | | | Class A | | | Class B | | ||||||||||||||||||
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted | | | | $ | 1,584,589 | | | | | $ | 396,147 | | | | | $ | 1,556,533 | | | | | $ | 491,377 | | | | | $ | 1,556,533 | | | | | $ | 491,377 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding | | | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 8,831,492 | | | | | | 2,787,983 | | | | | | 8,831,492 | | | | | | 2,875,000 | | |
Basic and diluted net income per common shares | | | | $ | 0.14 | | | | | $ | 0.14 | | | | | $ | 0.18 | | | | | $ | 0.18 | | | | | $ | 0.18 | | | | | $ | 0.18 | | |
| | | Three Months Ended September 30, 2022 | | | Three Months Ended September 30, 2021 | | ||||||||||||||||||
| | | Class A | | | Class B | | | Class A | | | Class B | | ||||||||||||
Basic and diluted net (loss) income per common stock | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net (loss) income, as adjusted | | | | $ | (232,395) | | | | | $ | (58,099) | | | | | $ | 833,202 | | | | | $ | 208,301 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding | | | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 11,500,000 | | | | | | 2,875,000 | | |
Basic and diluted net (loss) income per common shares | | | | $ | (0.02) | | | | | $ | (0.02) | | | | | $ | 0.07 | | | | | $ | 0.07 | | |
| | | Nine Months Ended September 30, 2022 | | | Nine Months Ended September 30, 2021 | | ||||||||||||||||||
| | | Class A | | | Class B | | | Class A | | | Class B | | ||||||||||||
Basic and diluted net income per common stock | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted | | | | $ | 1,352,194 | | | | | $ | 338,048 | | | | | $ | 2,398,095 | | | | | $ | 691,318 | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding | | | | | 11,500,000 | | | | | | 2,875,000 | | | | | | 9,772,894 | | | | | | 2,817,308 | | |
Basic and diluted net income per common shares | | | | $ | 0.12 | | | | | $ | 0.12 | | | | | $ | 0.25 | | | | | $ | 0.25 | | |
Description | | Level | | June 30, 2022 | | December 31, 2021 | | | Level | | September 30, 2022 | | December 31, 2021 | | ||||||||||||||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Marketable Securities held in Trust Account – U.S. Treasury Securities Money Market Fund | | | | 1 | | | | | 116,318,176 | | | | | 116,160,281 | | | | | | 1 | | | | | 116,831,001 | | | | | 116,160,281 | | | ||||||
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Warrant Liability – Public Warrants | | | | 1 | | | | | 1,035,000 | | | | | 2,817,500 | | | | | | 1 | | | | | 1,092,500 | | | | | 2,817,500 | | | ||||||
Warrant Liability – Private Placement Warrants | | | | 2 | | | | | 732,600 | | | | | 1,994,300 | | | | | | 2 | | | | | 773,300 | | | | | 1,994,300 | | | ||||||
Warrant Liability – Representative Warrants | | | | 3 | | | | | 18,000 | | | | | 49,000 | | | | | | 3 | | | | | 19,000 | | | | | 49,000 | | |
| | | March 31, 2022 | | | June 30, 2022 | | | September 30, 2022 | | |||||||||||||||||||||||||||
Input | | | Representative Warrants | | | Private Warrants | | | Representative Warrants | | | Private Warrants | | | Representative Warrants | | | Private Warrants | | ||||||||||||||||||
Market price of public stock | | | | $ | 9.88 | | | | | $ | — | | | | | $ | 9.89 | | | | | $ | — | | | | | $ | 9.95 | | | | | $ | — | | |
Risk-free rate | | | | | 2.44% | | | | | | —% | | | | | | 2.98% | | | | | | — | | | | | | 4.12% | | | | | | — | | |
Dividend Yield | | | | | 0.00% | | | | | | —% | | | | | | 0.00% | | | | | | — | | | | | | 0.00% | | | | | | — | | |
Exercise price | | | | $ | 11.50 | | | | | $ | — | | | | | $ | 11.50 | | | | | $ | — | | | | | $ | 11.50 | | | | | $ | — | | |
Effective expiration date | | | | | 6/23/26 | | | | | | — | | | | | | 6/23/26 | | | | | | — | | | | | | 8/26/26 | | | | | | — | | |
One-touch hurdle | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | Private Placement | | | Public | | | Representative | | | Warrant Liabilities | | ||||||||||||
Fair value as of January 1, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on February 11, 2021 | | | | | 3,785,100 | | | | | | 5,290,000 | | | | | | 36,500 | | | | | | 9,111,600 | | |
Change in valuation inputs or other assumptions | | | | | (1,587,300) | | | | | | (1,437,500) | | | | | | 17,500 | | | | | | (3,007,300) | | |
Transfer to Level 1 | | | | | — | | | | | | (3,852,500) | | | | | | — | | | | | | (3,852,500) | | |
Transfer to Level 2 | | | | | (2,197,800) | | | | | | — | | | | | | — | | | | | | (2,197,800) | | |
Fair value as of September 30, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | 54,000 | | | | | $ | 54,000 | | |
| | | March 31, 2022 | | | June 30, 2022 | | ||||||||||||||||||
Input | | | Representative Warrants | | | Private Warrants | | | Representative Warrants | | | Private Warrants | | ||||||||||||
Market price of public stock | | | | $ | 9.88 | | | | | $ | — | | | | | $ | 9.89 | | | | | $ | — | | |
Risk-free rate | | | | | 2.44% | | | | | | —% | | | | | | 2.98% | | | | | | — | | |
Dividend Yield | | | | | 0.00% | | | | | | —% | | | | | | 0.00% | | | | | | — | | |
Exercise price | | | | $ | 11.50 | | | | | $ | — | | | | | $ | 11.50 | | | | | $ | — | | |
Effective expiration date | | | | | 6/23/26 | | | | | | — | | | | | | 6/23/26 | | | | | | — | | |
One-touch hurdle | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | Private Placement | | | Public | | | Representative | | | Warrant Liabilities | | ||||||||||||
Fair value as of January 1, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on February 11, 2021 | | | | | 3,785,100 | | | | | | 5,290,000 | | | | | | 36,500 | | | | | | 9,111,600 | | |
Change in valuation inputs or other assumptions | | | | | (1,730,400) | | | | | | (2,357,500) | | | | | | (19,000) | | | | | | (4,106,900) | | |
Transfer to Level 1 | | | | | (2,054,700) | | | | | | (2,932,500) | | | | | | — | | | | | | (4,987,200) | | |
Fair value as of March 31, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | 17,500 | | | | | $ | 17,500 | | |
Change in valuation inputs or other assumptions | | | | | — | | | | | | — | | | | | | 16,000 | | | | | | 16,000 | | |
Fair value as of June 30, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | 33,500 | | | | | $ | 33,500 | | |
| | | Representative | | | Warrant Liabilities | | ||||||
Fair value as of January 1, 2022 | | | | $ | 49,000 | | | | | $ | 49,000 | | |
Change in valuation inputs or other assumptions | | | | | (17,000) | | | | | | (17,000) | | |
Fair value as of March 31, 2022 | | | | $ | 32,000 | | | | | $ | 32,000 | | |
Change in valuation inputs or other assumptions | | | | | (14,000) | | | | | | (14,000) | | |
Fair value as of June 30, 2022 | | | | $ | 18,000 | | | | | $ | 18,000 | | |
| | | Representative | | | Warrant Liabilities | | ||||||
Fair value as of January 1, 2022 | | | | $ | 49,000 | | | | | $ | 49,000 | | |
Change in valuation inputs or other assumptions | | | | | (17,000) | | | | | | (17,000) | | |
Fair value as of March 31, 2022 | | | | | 32,000 | | | | | | 32,000 | | |
Change in valuation inputs or other assumptions | | | | | (14,000) | | | | | | (14,000) | | |
Fair value as of June 30, 2022 | | | | | 18,000 | | | | | | 18,000 | | |
Change in valuation inputs or other assumptions | | | | | 1,000 | | | | | | 1,000 | | |
Fair value as of September 30, 2022 | | | | $ | 19,000 | | | | | $ | 19,000 | | |
| | | December 31, | | |||||||||
| | | 2021 | | | 2020 | | ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash | | | | $ | 724,410 | | | | | $ | 102,296 | | |
Prepaid expenses | | | | | 199,166 | | | | | | 400,000 | | |
Total Current Assets | | | | | 923,576 | | | | | | 502,296 | | |
Deferred offering costs | | | | | — | | | | | | 122,110 | | |
Marketable securities held in Trust Account | | | | | 116,160,281 | | | | | | — | | |
TOTAL ASSETS | | | | $ | 117,083,857 | | | | | $ | 624,406 | | |
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ (DEFICIT) EQUITY | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | | | $ | 440,245 | | | | | $ | 4,882 | | |
Promissory note – related party | | | | | — | | | | | | 600,000 | | |
Total Current Liabilities | | | | | 440,245 | | | | | | 604,882 | | |
Warrant Liabilities | | | | | 4,860,800 | | | | | | — | | |
TOTAL LIABILITIES | | | | | 5,301,045 | | | | | | 604,882 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A common stock subject to possible redemption, $0.0001 par value; 11,500,000 and 0 shares at $10.10 per share redemption value at December 31, 2021 and 2020, respectively | | | | | 116,150,000 | | | | | | — | | |
Stockholders’ (Deficit) Equity | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | | | | | — | | | | | | — | | |
Class A common stock, $0.0001 par value; 100,000,000 shares authorized | | | | | — | | | | | | — | | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 2,875,000 shares issued and outstanding at December 31, 2021 and 2020 | | | | | 288 | | | | | | 288 | | |
Additional paid-in capital | | | | | — | | | | | | 24,712 | | |
Accumulated deficit | | | | | (4,367,476) | | | | | | (5,476) | | |
Total Stockholders’ (Deficit) Equity | | | | | (4,367,188) | | | | | | 19,524 | | |
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ (DEFICIT) EQUITY | | | | $ | 117,083,857 | | | | | $ | 624,406 | | |
| | | Year Ended December 31, 2021 | | | For the Period from August 5, 2020 (Inception) Through December 31, 2020 | | ||||||
Operating and formation costs | | | | $ | 976,831 | | | | | $ | 5,476 | | |
Loss from operations | | | | | (976,831) | | | | | | (5,476) | | |
Other income (expenses): | | | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account | | | | | 10,281 | | | | | | — | | |
Transaction costs incurred in connection with IPO | | | | | (86,544) | | | | | | — | | |
Change in fair value of warrants liabilities | | | | | 4,297,300 | | | | | | — | | |
Other income, net | | | | | 4,221,037 | | | | | | — | | |
Net income (loss) | | | | $ | 3,244,206 | | | | | $ | (5,476) | | |
Weighted average shares outstanding of Class A common stock | | | | | 10,208,219 | | | | | | — | | |
Basic and Diluted income per share, Class A common stock | | | | $ | 0.25 | | | | | $ | — | | |
Weighted average shares outstanding of Class B common stock | | | | | 2,831,849 | | | | | | 2,500,000 | | |
Basic net income (loss) per share, Class B common stock | | | | $ | 0.25 | | | | | $ | (0.00) | | |
Weighted average shares outstanding of Class B common stock | | | | | 2,875,000 | | | | | | — | | |
Diluted net income per share, Class B common stock | | | | $ | 0.25 | | | | | $ | — | | |
| | | Class B Common Stock | | | Additional Paid-in Capital | | | Accumulated Deficit | | | Total Stockholders’ Equity (Deficit) | | ||||||||||||||||||
| | | Shares | | | Amount | | ||||||||||||||||||||||||
Balance – August 5, 2020 (inception) | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B common stock to Sponsor | | | | | 2,875,000 | | | | | | 288 | | | | | | 24,712 | | | | | | — | | | | | | 25,000 | | |
Net loss | | | | | — | | | | | | — | | | | | | — | | | | | | (5,476) | | | | | | (5,476) | | |
Balance – December 31, 2020 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | 24,712 | | | | | $ | (5,476) | | | | | $ | 19,524 | | |
Accretion for Class A common stock to redemption amount | | | | | — | | | | | | — | | | | | | (313,212) | | | | | | (7,606,206) | | | | | | (7,919,418) | | |
Cash paid in excess of fair value of private warrants | | | | | — | | | | | | — | | | | | | 288,400 | | | | | | — | | | | | | 288,400 | | |
Issuance of Representative Warrants | | | | | — | | | | | | — | | | | | | 100 | | | | | | — | | | | | | 100 | | |
Net income | | | | | — | | | | | | — | | | | | | — | | | | | | 3,244,206 | | | | | | 3,244,206 | | |
Balance – December 31, 2021 | | | | | 2,875,000 | | | | | $ | 288 | | | | | $ | — | | | | | $ | (4,367,476) | | | | | $ | (4,367,188) | | |
| | | Year Ended December 31, 2021 | | | For the Period from August 5, 2020 (Inception) Through December 31, 2020 | | ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss) | | | | $ | 3,244,206 | | | | | $ | (5,476) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | | | | | | | | | | |
Change in fair value of warrant liabilities | | | | | (4,297,300) | | | | | | — | | |
Transaction costs incurred in connection with IPO | | | | | 86,544 | | | | | | — | | |
Interest earned on marketable securities held in Trust Account | | | | | (10,281) | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Prepaid expenses | | | | | 200,834 | | | | | | (400,000) | | |
Accounts payable and accrued expenses | | | | | 435,363 | | | | | | 4,882 | | |
Net cash used in operating activities | | | | | (340,634) | | | | | | (400,594) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account | | | | | (116,150,000) | | | | | | — | | |
Net cash used in investing activities | | | | | (116,150,000) | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B common stock to Sponsor | | | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid | | | | | 114,000,000 | | | | | | — | | |
Proceeds from sale of Private Placements Warrants | | | | | 4,120,000 | | | | | | — | | |
Proceeds from sale of Unit Purchase Option | | | | | 100 | | | | | | — | | |
Proceeds from promissory note – related party | | | | | — | | | | | | 600,000 | | |
Repayment of promissory note – related party | | | | | (600,000) | | | | | | — | | |
Payment of offering costs | | | | | (407,352) | | | | | | (122,110) | | |
Net cash provided by financing activities | | | | | 117,112,748 | | | | | | 502,890 | | |
Net Change in Cash | | | | | 622,114 | | | | | | 102,296 | | |
Cash – Beginning of period | | | | | 102,296 | | | | | | — | | |
Cash – End of period | | | | $ | 724,410 | | | | | $ | 102,296 | | |
| Gross proceeds | | | | $ | 115,000,000 | | |
| Less: | | | | | | | |
| Proceeds allocated to Public Warrants | | | | $ | (5,290,000) | | |
| Class A common stock issuance at cost | | | | $ | (1,479,418) | | |
| Plus: | | | | | | | |
| Accretion of carrying value to redemption value | | | | $ | 7,919,418 | | |
| Class A common stock subject to possible redemption | | | | $ | 116,150,000 | | |
| | | Year Ended December 31, 2021 | | | For the Period from August 5, 2020 (Inception) Through December 31, 2020 | | ||||||||||||||||||
| | | Class A | | | Class B | | | Class A | | | Class B | | ||||||||||||
Basic net income (loss) per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income (loss), as adjusted | | | | $ | 2,539,677 | | | | | $ | 704,529 | | | | | $ | — | | | | | $ | (5,476) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic weighted average shares outstanding | | | | | 10,208,219 | | | | | | 2,831,849 | | | | | | — | | | | | | 2,500,000 | | |
Basic net income (loss) per common share | | | | $ | 0.25 | | | | | $ | 0.25 | | | | | $ | — | | | | | $ | (0.00) | | |
| | | Year Ended December 31, 2021 | | | For the Period from August 5, 2020 (Inception) Through December 31, 2020 | | ||||||||||||||||||
| | | Class A | | | Class B | | | Class A | | | Class B | | ||||||||||||
Diluted net income per common share | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income, as adjusted | | | | $ | 2,531,301 | | | | | $ | 712,905 | | | | | $ | — | | | | | $ | — | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Diluted weighted average shares outstanding | | | | | 10,208,219 | | | | | | 2,875,000 | | | | | | — | | | | | | — | | |
Diluted net income per common share | | | | $ | 0.25 | | | | | $ | 0.25 | | | | | $ | — | | | | | $ | — | | |
| | | December 31, 2021 | | | December 31, 2020 | | ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating loss carryforward | | | | $ | 39,841 | | | | | $ | — | | |
Startup/Organization Expenses | | | | $ | 181,309 | | | | | $ | — | | |
Total deferred tax assets | | | | | 221,150 | | | | | | — | | |
Valuation allowance | | | | | (221,150) | | | | | | — | | |
Deferred tax assets, net of allowance | | | | $ | — | | | | | $ | — | | |
| | | Year ended December 31, 2021 | | | For the period from August 5, 2020 (inception) through December 31, 2020 | | ||||||
Federal | | | | | | | | | | | | | |
Deferred | | | | $ | (221,150) | | | | | $ | — | | |
State | | | | | | | | | | | | | |
Change in valuation allowance | | | | $ | 221,150 | | | | | $ | — | | |
Income tax provision | | | | $ | — | | | | | $ | — | | |
| | | Year ended December 31, 2021 | | | For the period from August 5, 2020 (inception) through December 31, 2020 | | ||||||
Statutory federal income tax rate | | | | | 21.0% | | | | | | —% | | |
State taxes, net of federal tax benefit | | | | | 0.0% | | | | | | —% | | |
Deferred tax liability change in rate | | | | | 0.0% | | | | | | —% | | |
Change in fair value of warrants liabilities | | | | | (27.8)% | | | | | | —% | | |
Change in valuation allowance | | | | | 6.8% | | | | | | —% | | |
Income tax provision | | | | | 0.0% | | | | | | —% | | |
Description | | | Level | | | December 31, 2021 | | ||||||
Assets: | | | | | | | | | | | | | |
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund | | | | | 1 | | | | | $ | 116,160,281 | | |
Liabilities: | | | | | | | | | | | | | |
Warrant Liabilities – Public Warrants | | | | | 1 | | | | | | 2,817,500 | | |
Warrant Liabilities – Private Placement Warrants | | | | | 2 | | | | | | 1,994,300 | | |
Warrant Liabilities – Representative Warrants | | | | | 3 | | | | | | 49,000 | | |
| | | February 11, 2021 (Initial Measurement) | | | December 31, 2021 | | ||||||||||||||||||||||||
Input | | | Public Warrants | | | Private Warrants | | | Representative Warrants | | | Representative Warrants | | | Private Warrants | | |||||||||||||||
Market price of public stock | | | | $ | 9.54 | | | | | $ | 9.54 | | | | | $ | 9.54 | | | | | $ | 9.79 | | | | | $ | 9.79 | | |
Risk-free rate | | | | | 0.52% | | | | | | 0.52% | | | | | | 0.36% | | | | | | 1.18% | | | | | | 1.18% | | |
Dividend Yield | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | | | | | 0.00% | | |
Exercise price | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | | | | $ | 11.50 | | |
Effective expiration date | | | | | 6/26/26 | | | | | | 6/26/26 | | | | | | 5/11/25 | | | | | | 6/23/26 | | | | | | 6/23/26 | | |
One-touch hurdle | | | | $ | 18.15 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | | Private Placement | | | Public | | | Representative | | | Warrant Liabilities | | ||||||||||||
Fair value as of January 1, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Initial measurement on February 11th, 2021 | | | | | 3,785,100 | | | | | | 5,290,000 | | | | | | 36,500 | | | | | | 9,111,600 | | |
Change in valuation inputs or other assumptions | | | | | (1,587,300) | | | | | | (1,437,500) | | | | | | 12,500 | | | | | | (3,012,300) | | |
Transfer to Level 1 | | | | | — | | | | | | (3,852,500) | | | | | | — | | | | | | (3,852,500) | | |
Transfer to Level 2 | | | | | (2,197,800) | | | | | | — | | | | | | — | | | | | | (2,197,800) | | |
Fair value as of December 31, 2021 | | | | $ | — | | | | | $ | — | | | | | $ | 49,000 | | | | | $ | 49,000 | | |
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EXHIBIT A Form of Amended and Restated Registration Rights Agreement | | | | | | | |
EXHIBIT B Form of Lock-Up Agreement | | | | | | | |
EXHIBIT C Form of Amended and Restated Adara Insider Agreement | | | | | | | |
EXHIBIT D Form of Amended and Restated Certificate of Incorporation of Surviving Corporation | | | | | | | |
EXHIBIT E Form of Amended and Restated Bylaws of Surviving Corporation | | | | | | | |
EXHIBIT F Form of Adara Second Amended and Restated Certificate of Incorporation | | | | | | | |
EXHIBIT G Directors and Officers of the Surviving Corporation and Adara | | | | | | | |
SCHEDULE A Company Knowledge Parties | | | | | | | |
SCHEDULE B Key Company Stockholders | | | | | | | |
SCHEDULE C Adara Initial Stockholders | | | | | | | |
Defined Term | | | Location of Definition | |
2021 Balance Sheet | | | Section 4.07 | |
Action | | | Section 4.09 | |
Adara | | | Preamble | |
Adara Board | | | Recitals | |
Adara Preferred Stock | | | Section 5.03(a) | |
Adara Proposals | | | Section 7.01(a) | |
Adara SEC Reports | | | Section 5.07(a) | |
Adara Stockholders’ Meeting | | | Section 7.01(a) | |
Agreement | | | Preamble | |
Alternative Transaction | | | Section 7.05 | |
Amended and Restated Adara Insider Agreement | | | Recitals | |
Annual Financial Statements | | | Section 4.07(a) | |
Antitrust Laws | | | Section 7.13(a) | |
Audited Financial Statements | | | Section 7.17 | |
Blue Sky Laws | | | Section 4.05(b) | |
Certificate of Merger | | | Section 2.02(a) | |
Certificates | | | Section 3.02(b) | |
Change of Control | | | Section 3.03(f) | |
Claims | | | Section 6.03 | |
Closing | | | Section 2.02(b) | |
Closing Date | | | Section 2.02(b) | |
Code | | | Section 3.02(h) | |
Company | | | Preamble | |
Company Board | | | Recitals | |
Company Disclosure Schedule | | | Article III | |
Company Permits | | | Section 4.06 | |
Company Stockholder Approval | | | Section 4.18 | |
Company Stockholder Meeting | | | Section 7.03 | |
Confidentiality Agreement | | | Section 7.04(b) | |
Contingent Consideration Shares | | | Section 3.03(a) | |
Continuing Employees | | | Section 7.06(a) | |
Contracting Parties | | | Section 10.11 | |
DGCL | | | Recitals | |
Effective Time | | | Section 2.02(a) | |
Environmental Permits | | | Section 4.15 | |
ERISA Affiliate | | | Section 4.10(c) | |
Exchange Agent | | | Section 3.02(a) | |
Defined Term | | | Location of Definition | |
Exchange Fund | | | Section 3.02(a) | |
Existing Security Agreements | | | Section 4.16(a)(v) | |
GAAP | | | Section 4.07(a) | |
Governmental Authority | | | Section 4.05(b) | |
Health Plan | | | Section 4.10(k) | |
Intended Tax-Free Treatment | | | Recitals | |
Interim Financial Statements | | | Section 4.07(b) | |
IRS | | | Section 4.10(b) | |
Law | | | Section 4.05(a) | |
Lease | | | Section 4.12(b) | |
Lease Documents | | | Section 4.12(b) | |
Letter of Transmittal | | | Section 3.02(b) | |
Lock-Up Agreement | | | Recitals | |
Major Customers | | | Section 4.19(a) | |
Major Vendors | | | Section 4.19(b) | |
Material Contracts | | | Section 4.16(a) | |
Maximum Annual Premium | | | Section 7.08(b) | |
Merger | | | Recitals | |
Merger Sub | | | Preamble | |
Merger Sub Board | | | Recitals | |
Merger Sub Common Stock | | | Section 5.03(b) | |
Nonparty Affiliates | | | Section 10.11 | |
Ordinary Commercial Agreement | | | Section 4.14(b) | |
Outside Date | | | Section 9.01(b) | |
Per Share Closing Merger Consideration | | | Section 3.01(a)(i) | |
Plans | | | Section 4.10(a) | |
PPACA | | | Section 4.10(k) | |
Proxy Statement | | | Section 7.01(a) | |
Registration Rights Agreement | | | Recitals | |
Remedies Exceptions | | | Section 4.04 | |
Representatives | | | Section 7.04(a) | |
Reviewed Financial Statements | | | Section 7.17 | |
SEC | | | Section 5.07(a) | |
Securities Act | | | Section 5.07(a) | |
Sponsor Stockholder Support Agreement | | | Recitals | |
Stockholder Support Agreement | | | Recitals | |
Surviving Corporation | | | Section 2.01 | |
Terminating Company Breach | | | Section 9.01(d) | |
Terminating Adara Breach | | | Section 9.01(g) | |
Trust Account | | | Section 5.13 | |
Trust Agreement | | | Section 5.13 | |
Trust Fund | | | Section 5.13 | |
Trustee | | | Section 5.13 | |
Written Consent | | | Section 7.03 | |
By: | |
By: | |
By: | |
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By: | |
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| Exhibit Number | | | | | Incorporated by Reference | | Exhibit Number | | | | | Incorporated by Reference | | ||||||||||||||||||||
| Description of Document | | Schedule/Form | | File Number | | Exhibits | | Filing Date | | | Description of Document | | Schedule/Form | | File Number | | Exhibits | | Filing Date | | |||||||||||||
| 2.1† | | | Form 8-K | | 001-40014 | | 2.1 | | June 23, 2022 | | 2.1† | | | Form 8-K | | 001-40014 | | 2.1 | | June 23, 2022 | | ||||||||||||
| 3.1 | | | Form S-1/A | | 333-250157 | | 3.1 | | January 14, 2021 | | 3.1 | | | Form S-1/A | | 333-250157 | | 3.1 | | January 14, 2021 | | ||||||||||||
| 3.2 | | | Form 8-K | | 001-40014 | | 3.1 | | February 11, 2021 | | 3.2 | | | Form 8-K | | 001-40014 | | 3.1 | | February 11, 2021 | | ||||||||||||
| 3.3 | | | Form S-1 | | 333-250157 | | 3.3 | | November 18, 2020 | | 3.3 | | | Form S-1 | | 333-250157 | | 3.3 | | November 18, 2020 | | ||||||||||||
| 3.4 | | | Form 8-K | | 001-40014 | | 2.1 | | June 23, 2022 | | 3.4 | | | Form 8-K | | 001-40014 | | 2.1 | | June 23, 2022 | | ||||||||||||
| 4.1 | | | Form S-1/A | | 333-250157 | | 4.1 | | January 14, 2021 | | 4.1 | | | Form S-1/A | | 333-250157 | | 4.1 | | January 14, 2021 | | ||||||||||||
| 4.2 | | | Form S-1/A | | 333-250157 | | 4.2 | | January 14, 2021 | | 4.2 | | | Form S-1/A | | 333-250157 | | 4.2 | | January 14, 2021 | | ||||||||||||
| 4.3 | | | Form S-1/A | | 333-250157 | | 4.3 | | January 14, 2021 | | 4.3 | | | Form S-1/A | | 333-250157 | | 4.3 | | January 14, 2021 | | ||||||||||||
| 4.4 | | | Form 8-K | | 001-40014 | | 4.1 | | February 11, 2021 | | 4.4 | | | Form 8-K | | 001-40014 | | 4.1 | | February 11, 2021 | | ||||||||||||
| 4.5 | | | Form S-4 | | 333-266098 | | 4.5 | | October 18, 2022 | | 4.5 | | | Form S-4 | | 333-266098 | | 4.5 | | October 18, 2022 | | ||||||||||||
| 4.6 | | | Form S-4 | | 333-266098 | | 4.6 | | October 18, 2022 | | 4.6 | | | Form S-4 | | 333-266098 | | 4.6 | | October 18, 2022 | | ||||||||||||
| 5.1 | | | Form S-4 | | 333-266098 | | 5.1 | | October 18, 2022 | | 5.1 | | | Form S-4 | | 333-266098 | | 5.1 | | October 18, 2022 | | ||||||||||||
| 8.1* | | Tax Opinion of Blank Rome LLP. | | | | | | | | | 8.1* | | | | | | | | | | | ||||||||||||
| 10.1 | | | Form S-1 | | 333-250157 | | 10.2 | | November 18, 2020 | | 10.1 | | | Form S-1 | | 333-250157 | | 10.2 | | November 18, 2020 | |
| Exhibit Number | | | | | | Incorporated by Reference | | |||||||||
| Description of Document | | | Schedule/Form | | | File Number | | | Exhibits | | | Filing Date | | |||
| 10.2 | | | | | Form S-1 | | | 333-250157 | | | 10.5 | | | November 18, 2020 | | |
| 10.3 | | | | | Form S-1/A | | | 333-250157 | | | 10.7 | | | January 14, 2021 | | |
| 10.4 | | | Letter Agreement, dated February 8, 2021, by and among Adara, its officers, its directors, Adara Sponsor LLC and other initial stockholders of Adara. | | | Form 8-K | | | 001-40014 | | | 10.1 | | | February 11, 2021 | |
| 10.5 | | | Investment Management Trust Agreement, dated February 8, 2021, by and between the Company and Continental Stock Transfer & Trust Company, as trustee. | | | Form 8-K | | | 001-40014 | | | 10.2 | | | February 11, 2021 | |
| 10.6 | | | | | Form 8-K | | | 001-40014 | | | 10.3 | | | February 11, 2021 | | |
| 10.7 | | | | | Form 8-K | | | 001-40014 | | | 10.4 | | | February 11, 2021 | | |
| 10.8 | | | | | Form 8-K | | | 001-40014 | | | 10.5 | | | February 11, 2021 | | |
| 10.9 | | | | | Form 8-K | | | 001-40014 | | | 2.1 | | | June 23, 2022 | | |
| 10.10 | | | | | Form S-4 | | | 333-266098 | | | 10.10 | | | July 12, 2022 | |
| Exhibit Number | | | | | | Incorporated by Reference | | |||||||||
| Description of Document | | | Schedule/Form | | | File Number | | | Exhibits | | | Filing Date | | |||
| 10.18 | | | Multi-Tenant Industrial Triple Net Lease, dated as of December 14, 2007, by and between Cedar Grove — Crossdock, LLC and Alliance Entertainment, LLC | | | Form S-4 | | | 333-266098 | | | 10.18 | | | October 18, 2022 | |
| 10.19 | | | | | Form S-4 | | | 333-266098 | | | 10.19 | | | October 18, 2022 | | |
| 10.20 | | | | | Form S-4 | | | 333-266098 | | | 10.20 | | | October 18, 2022 | | |
| 10.21 | | | | | Form S-4 | | | 333-266098 | | | 10.21 | | | October 18, 2022 | | |
| 10.22 | | | | | Form S-4 | | | 333-266098 | | | 10.22 | | | October 18, 2022 | | |
| 10.23 | | | | | Form S-4 | | | 333-266098 | | | 10.23 | | | October 18, 2022 | | |
| 10.24 | | | | | Form S-4 | | | 333-266098 | | | 10.24 | | | October 18, 2022 | | |
| 10.25 | | | | | Form S-4 | | | 333-266098 | | | 10.25 | | | October 18, 2022 | |
| Exhibit Number | | | | | Incorporated by Reference | | Exhibit Number | | | | | Incorporated by Reference | | ||||||||||||||||||||
| Description of Document | | Schedule/Form | | File Number | | Exhibits | | Filing Date | | | Description of Document | | Schedule/Form | | File Number | | Exhibits | | Filing Date | | |||||||||||||
| 10.26 | | | Form S-4 | | 333-266098 | | 10.26 | | October 18, 2022 | | 10.26 | | | Form S-4 | | 333-266098 | | 10.26 | | October 18, 2022 | | ||||||||||||
| 10.27 | | | Form S-4 | | 333-266098 | | 10.27 | | October 18, 2022 | | 10.27 | | | Form S-4 | | 333-266098 | | 10.27 | | October 18, 2022 | | ||||||||||||
| 10.28 | | | Form S-4 | | 333-266098 | | 10.28 | | October 18, 2022 | | 10.28 | | | Form S-4 | | 333-266098 | | 10.28 | | October 18, 2022 | | ||||||||||||
| 23.1* | | Consent of WithumSmith+Brown, PC, independent registered public accounting firm of Adara. | | | | | | | | | | 23.1* | | Consent of WithumSmith+Brown, PC, independent registered public accounting firm of Adara. | | | | | | | | | | ||||||||||
| 23.2* | | Consent of BDO USA, LLP, independent registered public accounting firm of Alliance. | | | | | | | | | | 23.2* | | Consent of BDO USA, LLP, independent registered public accounting firm of Alliance. | | | | | | | | | | ||||||||||
| 23.3 | | | Form S-4 | | 333-266098 | | 5.1 | | October 18, 2022 | | 23.3 | | | Form S-4 | | 333-266098 | | 5.1 | | October 18, 2022 | | ||||||||||||
| 24.1 | | Power of Attorney (included on the signature page to this Registration Statement on Form S-4). | | | | | | | | | | 24.1 | | Power of Attorney (included on the signature page to this Registration Statement on Form S-4). | | | | | | | | | | ||||||||||
| 99.1 | | | Form S-4 | | 333-266098 | | 99.1 | | July 12, 2022 | | 99.1 | | | Form S-4 | | 333-266098 | | 99.1 | | July 12, 2022 | | ||||||||||||
| 99.2 | | | Form S-4 | | 333-266098 | | 99.2 | | July 12, 2022 | | 99.2 | | | Form S-4 | | 333-266098 | | 99.2 | | July 12, 2022 | | ||||||||||||
| 99.3 | | | Form S-4 | | 333-266098 | | 99.3 | | July 12, 2022 | | 99.3 | | | Form S-4 | | 333-266098 | | 99.3 | | July 12, 2022 | | ||||||||||||
| 99.4 | | | Form S-4 | | 333-266098 | | 99.4 | | July 12, 2022 | | 99.4 | | | Form S-4 | | 333-266098 | | 99.4 | | July 12, 2022 | | ||||||||||||
| 99.5* | | | | | | | | | | | 99.5 | | | Form S-4 | | 333-266098 | | 99.4 | | November 23, 2022 | | ||||||||||||
| 99.6* | | | Form S-4 | | 333-266098 | | 99.7 | | July 12, 2022 | | 99.6 | | | Form S-4 | | 333-266098 | | 99.5 | | November 8, 2022 | | ||||||||||||
| 101.INS* | | XBRL Instance Document. | | | | | | | | | |
| Exhibit Number | | | | | Incorporated by Reference | | Exhibit Number | | | | | Incorporated by Reference | | ||||||||||||||||||||
| Description of Document | | Schedule/Form | | File Number | | Exhibits | | Filing Date | | | Description of Document | | Schedule/Form | | File Number | | Exhibits | | Filing Date | | |||||||||||||
| 101.CAL* | | XBRL Taxonomy Extension Calculation Linkbase Document. | | | | | | | | | | 99.7* | | | | | | | | | | | |||||||||||
| 101.SCH* | | XBRL Taxonomy Extension Schema Document. | | | | | | | | | | 101.INS | | XBRL Instance Document. | | | | | | | | | | ||||||||||
| 101.DEF* | | XBRL Taxonomy Extension Definition Linkbase Document. | | | | | | | | | | 101.CAL | | XBRL Taxonomy Extension Calculation Linkbase Document. | | | | | | | | | | ||||||||||
| 101.LAB* | | XBRL Taxonomy Extension Labels Linkbase Document. | | | | | | | | | | 101.SCH | | XBRL Taxonomy Extension Schema Document. | | | | | | | | | | ||||||||||
| 101.PRE* | | XBRL Taxonomy Extension Presentation Linkbase Document. | | | | | | | | | | 101.DEF | | XBRL Taxonomy Extension Definition Linkbase Document. | | | | | | | | | | ||||||||||
| 104* | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | | | | | | | | | | 101.LAB | | XBRL Taxonomy Extension Labels Linkbase Document. | | | | | | | | | | ||||||||||
| 107 | | | Form S-4 | | 333-266098 | | 107 | | July 12, 2022 | | 101.PRE | | XBRL Taxonomy Extension Presentation Linkbase Document. | | | | | | | | | | |||||||||||
| 104 | | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | | | | | | | | | | ||||||||||||||||||||||
| 107 | | | Form S-4 | | 333-266098 | | 107 | | July 12, 2022 | |
| Signature | | | Title | | | Date | |
| /s/ Thomas Finke Thomas Finke | | | Chairman of the Board of Director and Chief Executive Officer (Principal Executive Officer) | | | November | |
| /s/ Paul G. Porter Paul G. Porter | | | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | | | November | |
| * W. Tom Donaldson III | | | Director | | | November | |
| * Frank Quintero | | | Director | | | November | |
| * Dylan Glenn | | | Director | | | November | |
| * Beatriz Acevedo-Greiff | | | Director | | | November | |
| * By: | | | /s/ Paul G. Porter | |
| | | | Paul G. Porter, Attorney-in-fact | |