Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 10, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | JAKKS Pacific, Inc. | |
Trading Symbol | JAKK | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 9,870,927 | |
Amendment Flag | false | |
Entity Central Index Key | 0001009829 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-28104 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 95-4527222 | |
Entity Address, Address Line One | 2951 28th Street | |
Entity Address, City or Town | Santa Monica | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90405 | |
City Area Code | 424 | |
Local Phone Number | 268-9444 | |
Entity Interactive Data Current | Yes | |
Title of 12(g) Security | Common Stock $.001 Par Value | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 38,103 | $ 85,297 |
Restricted cash | 198 | 193 |
Accounts receivable, net of allowances for credit losses of $3,226 and $2,865 at March 31, 2023 and December 31, 2022, respectively | 85,171 | 102,771 |
Inventory | 63,988 | 80,619 |
Prepaid expenses and other assets | 12,849 | 6,331 |
Total current assets | 200,309 | 275,211 |
Property and equipment | ||
Office furniture and equipment | 10,077 | 10,064 |
Molds and tooling | 114,098 | 113,714 |
Leasehold improvements | 6,493 | 6,659 |
Total | 130,668 | 130,437 |
Less accumulated depreciation and amortization | 114,499 | 115,575 |
Property and equipment, net | 16,169 | 14,862 |
Operating lease right-of-use assets, net | 17,634 | 19,913 |
Other long-term assets | 2,387 | 2,469 |
Deferred income tax assets, net | 57,804 | 57,804 |
Goodwill | 35,083 | 35,083 |
Total assets | 329,386 | 405,342 |
Current liabilities | ||
Accounts payable | 27,714 | 33,687 |
Accounts payable – Meisheng (related party) | 8,024 | 9,820 |
Accrued expenses | 27,006 | 37,998 |
Reserve for sales returns and allowances | 41,064 | 51,877 |
Income taxes payable | 6,241 | 8,165 |
Short term operating lease liabilities | 10,009 | 10,746 |
Short term debt, net | 2,475 | 25,529 |
Total current liabilities | 122,533 | 177,822 |
Long term operating lease liabilities | 8,095 | 9,863 |
Debt, non-current portion, net of issuance costs and debt discounts | 26,969 | 41,622 |
Preferred stock derivative liability | 21,771 | 21,918 |
Income taxes payable | 2,941 | 2,929 |
Total liabilities | 182,309 | 254,154 |
Preferred stock accrued dividends, $0.001 par value; 5,000,000 shares authorized; 200,000 shares issued and outstanding at March 31, 2023 and December 31, 2022 | 4,857 | 4,490 |
Stockholders' Equity | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 9,870,927 and 9,742,236 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 10 | 10 |
Additional paid-in capital | 275,695 | 275,187 |
Accumulated deficit | (117,331) | (112,018) |
Accumulated other comprehensive loss | (17,150) | (17,482) |
Total JAKKS Pacific, Inc. stockholders' equity | 141,224 | 145,697 |
Non-controlling interests | 996 | 1,001 |
Total stockholders' equity | 142,220 | 146,698 |
Total liabilities, preferred stock and stockholders' equity | $ 329,386 | $ 405,342 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowances for credit losses (in Dollars) | $ 3,226 | $ 2,865 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 200,000 | 200,000 |
Preferred stock, shares outstanding | 200,000 | 200,000 |
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 9,870,927 | 9,742,236 |
Common stock, shares outstanding | 9,870,927 | 9,742,236 |
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Net sales | $ 107,484 | $ 120,881 |
Cost of sales: | ||
Cost of goods | 76,047 | 90,964 |
Gross profit | 31,437 | 29,917 |
Direct selling expenses | 7,741 | 4,902 |
General and administrative expenses | 27,994 | 25,153 |
Depreciation and amortization | 102 | 596 |
Selling, general and administrative expenses | 35,837 | 30,651 |
Loss from operations | (4,400) | (734) |
Other income (expense), net | 438 | 86 |
Change in fair value of preferred stock derivative liability | 147 | (645) |
Interest income | 117 | 3 |
Interest expense | (3,003) | (2,202) |
Loss before provision for (benefit from) income taxes | (6,701) | (3,492) |
Provision for (benefit from) income taxes | (1,383) | 417 |
Net loss | (5,318) | (3,909) |
Net loss attributable to non-controlling interests | (5) | (100) |
Net loss attributable to Jakks Pacific, Inc. | (5,313) | (3,809) |
Net loss attributable to common stockholders | $ (5,680) | $ (4,155) |
Loss per share - basic and diluted (in Dollars per share) | $ (0.58) | $ (0.43) |
Shares used in loss per share - basic and diluted (in Shares) | 9,871,000 | 9,588,000 |
Comprehensive loss | $ (4,986) | $ (4,571) |
Comprehensive loss attributable to JAKKS Pacific, Inc. | (4,981) | (4,471) |
Cost of Sales [Member] | ||
Cost of sales: | ||
Cost of goods | 58,304 | 72,058 |
Royalty [Member] | ||
Cost of sales: | ||
Cost of goods | 16,654 | 17,690 |
Amortization Of Tools And Mold [Member] | ||
Cost of sales: | ||
Cost of goods | $ 1,089 | $ 1,216 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Including Portion Attributable to Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Parent [Member] | Total |
Balance at Dec. 31, 2021 | $ 10 | $ 272,941 | $ (203,431) | $ (12,952) | $ 1,331 | $ 57,899 | $ 56,568 |
Share-based compensation expense | 870 | 870 | 870 | ||||
Repurchase of common stock for employee tax withholding | (644) | (644) | (644) | ||||
Preferred stock accrued dividends | (346) | (346) | (346) | ||||
Net loss | (3,809) | (100) | (3,909) | (3,809) | |||
Foreign currency translation adjustment | (662) | (662) | (662) | ||||
Balance at Mar. 31, 2022 | 10 | 272,821 | (207,240) | (13,614) | 1,231 | 53,208 | 51,977 |
Balance at Dec. 31, 2022 | 10 | 275,187 | (112,018) | (17,482) | 1,001 | 146,698 | 145,697 |
Share-based compensation expense | 2,089 | 2,089 | 2,089 | ||||
Repurchase of common stock for employee tax withholding | (1,214) | (1,214) | (1,214) | ||||
Preferred stock accrued dividends | (367) | (367) | (367) | ||||
Net loss | (5,313) | (5) | (5,318) | (5,313) | |||
Foreign currency translation adjustment | 332 | 332 | 332 | ||||
Balance at Mar. 31, 2023 | $ 10 | $ 275,695 | $ (117,331) | $ (17,150) | $ 996 | $ 142,220 | $ 141,224 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (5,318) | $ (3,909) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for (recovery of) credit losses | 380 | (39) |
Depreciation and amortization | 1,191 | 1,812 |
Write-off and amortization of debt discount | 692 | 94 |
Write-off and amortization of debt issuance costs | 399 | 123 |
Share-based compensation expense | 2,089 | 870 |
Gain on disposal of property and equipment | (18) | 0 |
Change in fair value of preferred stock derivative liability | (147) | 645 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 17,220 | 43,703 |
Inventory | 16,631 | (1,352) |
Prepaid expenses and other assets | (6,515) | (6,540) |
Accounts payable | (4,704) | (14,328) |
Accounts payable - Meisheng (related party) | (2,073) | (389) |
Accrued expenses | (10,992) | (16,475) |
Reserve for sales returns and allowances | (10,813) | (6,910) |
Income taxes payable | (1,912) | 201 |
Other liabilities | (226) | (242) |
Total adjustments | 1,202 | 1,173 |
Net cash used in operating activities | (4,116) | (2,736) |
Cash flows from investing activities | ||
Purchases of property and equipment | (3,490) | (1,817) |
Proceeds from sale of property and equipment | 18 | 0 |
Net cash used in investing activities | (3,472) | (1,817) |
Cash flows from financing activities | ||
Repurchase of common stock for employee tax withholding | (1,214) | (644) |
Repayment of credit facility borrowings | 0 | (13,000) |
Proceeds from credit facility borrowings | 0 | 13,000 |
Repayment of 2021 BSP Term Loan | (38,719) | (248) |
Net cash used in financing activities | (39,933) | (892) |
Net decrease in cash, cash equivalents and restricted cash | (47,521) | (5,445) |
Effect of foreign currency translation | 332 | (662) |
Cash, cash equivalents and restricted cash, beginning of period | 85,490 | 45,332 |
Cash, cash equivalents and restricted cash, end of period | 38,301 | 39,225 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net | 550 | 220 |
Cash paid for interest | $ 1,906 | $ 1,967 |
Cash Flow, Supplemental Disclos
Cash Flow, Supplemental Disclosures | 3 Months Ended |
Mar. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | As of March 31, 2023 and 2022, there was $2.6 million and $3.3 million, respectively, of property and equipment purchases included in accounts payable. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1 Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K, which contains audited financial information for the three years in the period ended December 31, 2022. The information provided in this report reflects all adjustments (consisting solely of normal recurring items) that are, in the opinion of management, necessary to present fairly the financial position and the results of operations for the periods presented. Interim results are not necessarily, especially given seasonality, indicative of results to be expected for a full year. The condensed consolidated financial statements include the accounts of JAKKS Pacific, Inc. and its wholly-owned subsidiaries (collectively, “the Company”). The condensed consolidated financial statements also include the accounts of JAKKS Meisheng Trading (Shanghai) Limited, a joint venture with Meisheng Cultural & Creative Corp., Ltd., and JAKKS Meisheng Animation (HK) Limited, a joint venture with Hong Kong Meisheng Cultural Company Limited. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which require a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The new standard was initially effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In November 2019, the FASB issued ASU 2019-10 which deferred the effective date of ASU 2016-13 by three years for Smaller Reporting Companies. As a result, the effective date for the standard is fiscal years beginning after December 15, 2022, and interim periods therein, and early adoption is permitted. The Company adopted ASU 2016-13 and its related amendments on January 1, 2023. The adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” In January 2021, the FASB issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” The ASUs provide temporary optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions, for a limited period of time, to ease the potential burden of recognizing the effects of reference rate reform on financial reporting. The amendments in ASU 2020-04 apply to contracts, hedging relationships and other transactions that reference the London Inter-Bank Offered Rate ("LIBOR") or another reference rate expected to be discontinued due to the global transition away from LIBOR and certain other interbank offered rates. In December 2022, the FASB issued ASU 2022-06 which extended the effective date of the new standard to fiscal years beginning after December 15, 2024, including interim periods within those fiscal years, with early adoption permitted. In Q1 2023, the Company entered into amendments to its 2021 BSP Term Loan Agreement and its JPMorgan ABL Credit Agreement, which transitioned the interest reference rate on its term loan and revolving line of credit from LIBOR to the Secured Overnight Financing Rate (“SOFR”) (See Note 5 – Debt and Note 6 – Credit Facilities). The Company is currently evaluating the impact that the adoption of this new guidance will have on its condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The new guidance eliminates two of the three models in ASC 470-20, which required entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. As a result, only conversion features accounted for under the substantial premium model in ASC 470-20 and those that require bifurcation in accordance with ASC 815-15 will be accounted for separately. In addition, the amendments in ASU 2020-06 eliminate some of the requirements in ASC 815-40 related to equity classification. The amendments in ASU 2020-06 further revised the guidance in ASC 260, Earnings Per Share (“EPS”), to address how convertible instruments are accounted for in calculating diluted EPS, and require enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The new standard is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within these fiscal years, with early adoption permitted. The Company is currently evaluating the impact that the adoption of this new guidance will have on its condensed consolidated financial statements. |
Business Segments, Geographic D
Business Segments, Geographic Data, and Sales by Major Customers | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 2 Business Segments, Geographic Data and Sales by Major Customers The Company is a worldwide producer and marketer of children’s toys and other consumer products, principally engaged in the design, development, production, marketing and distribution of its diverse portfolio of products. The Company’s segments are (i) Toys/Consumer Products and (ii) Costumes. The Toys/Consumer Products segment includes action figures, vehicles, play sets, plush products, dolls, electronic products, construction toys, infant and pre-school toys, child-sized and hand-held role play toys and everyday costume play, foot-to-floor ride-on vehicles, wagons, novelty toys, seasonal and outdoor products, kids’ indoor and outdoor furniture, and related products. The Costumes segment, under its Disguise branding, designs, develops, markets and sells a wide range of every-day and special occasion dress-up costumes and related accessories in support of Halloween, Carnival, Children’s Day, Book Day/Week, and every-day/any-day costume play. Segment performance is measured at the operating income (loss) level. All sales are made to external customers and general corporate expenses have been attributed to the segments based upon relative sales volumes. Segment assets are primarily comprised of accounts receivable and inventories, net of applicable reserves and allowances, goodwill and other assets. Certain assets which are not tracked by operating segment and/or that benefit multiple operating segments have been allocated on the same basis. Results are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the three months ended March 31, 2023 and 2022 and as of March 31, 2023 and December 31, 2022 are as follows (in thousands): ` Three Months Ended March 31, 2023 2022 Net Sales Toys/Consumer Products $ 97,893 $ 111,123 Costumes 9,591 9,758 $ 107,484 $ 120,881 Three Months Ended March 31, 2023 2022 Income (Loss) from Operations Toys/Consumer Products $ (1,161 ) $ 2,007 Costumes (3,239 ) (2,741 ) $ (4,400 ) $ (734 ) Three Months Ended March 31, 2023 2022 Depreciation and Amortization Expense Toys/Consumer Products $ 1,160 $ 1,725 Costumes 31 87 $ 1,191 $ 1,812 March 31, December 31, 2023 2022 Assets Toys/Consumer Products $ 298,215 $ 377,605 Costumes 31,171 27,737 $ 329,386 $ 405,342 Net revenues are categorized based upon location of the customer, while long-lived assets are categorized based upon the location of the Company’s assets. The following tables present information about the Company by geographic area as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 (in thousands): March 31, December 31, 2023 2022 Long-lived Assets China $ 15,608 $ 14,161 United States 15,224 17,383 Hong Kong 1,931 2,142 United Kingdom 936 974 Mexico 64 69 Canada 40 46 $ 33,803 $ 34,775 Three Months Ended March 31, 2023 2022 Net Sales by Customer Area United States $ 80,443 $ 97,050 Europe 10,162 13,389 Latin America 9,204 2,385 Canada 4,054 3,379 Australia & New Zealand 1,608 1,491 Asia 1,380 2,076 Middle East & Africa 633 1,111 $ 107,484 $ 120,881 Major Customers Net sales to major customers for the three months ended March 31, 2023 and 2022 were as follows (in thousands, except for percentages): Three Months Ended March 31, 2023 2022 Percentage Percentage Amount of Net Sales Amount of Net Sales Target $ 29,404 27.4 % $ 35,670 29.5 % Wal-Mart 23,283 21.7 23,020 19.0 Amazon 6,601 6.1 14,016 11.6 $ 59,288 55.2 % $ 72,706 60.1 % No other customer accounted for more than 10% of the Company's total net sales. The concentration of the Company’s business with a relatively small number of customers may expose the Company to material adverse effects if one or more of its large customers were to experience financial difficulty. The Company performs ongoing credit evaluations of its top customers and maintains an allowance for potential credit losses. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3 Inventory Inventory, which includes the ex-factory cost of goods, capitalized warehouse costs, and in-bound freight and duty, is valued at the lower of cost or net realizable value, net of inventory obsolescence reserve, and consists of the following (in thousands): March 31, December 31, 2023 2022 Raw materials $ 55 $ 69 Finished goods 63,933 80,550 $ 63,988 $ 80,619 As of March 31, 2023 and December 31, 2022, the inventory obsolescence reserve was $9.8 million and $9.0 million, respectively. |
Revenue Recognition and Reserve
Revenue Recognition and Reserve for Sales Returns and Allowances | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Note 4 Revenue Recognition and Reserve for Sales Returns and Allowances The Company’s contracts with customers only include one performance obligation (i.e., sale of the Company’s products). Revenue is recognized in the gross amount at a point in time when delivery is completed and control of the promised goods is transferred to the customers. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for those goods. The Company’s contracts do not involve financing elements as payment terms with customers are less than one year. Further, because revenue is recognized at the point in time goods are sold to customers, there are no contract assets or contract liability balances. The Company disaggregates its revenues from contracts with customers by reporting segment: Toys/Consumer Products and Costumes. The Company further disaggregates revenues by major geographic regions (See Note 2 - Business Segments, Geographic Data and Sales by Major Customers, for further information). The Company offers various discounts, pricing concessions, and other allowances to customers, all of which are considered in determining the transaction price. Certain discounts and allowances are fixed and determinable at the time of sale and are recorded at the time of sale as a reduction to revenue. Other discounts and allowances can vary and are determined at management’s discretion (variable consideration). Specifically, the Company occasionally grants discretionary credits to facilitate markdowns and sales of slow-moving merchandise, and consequently accrues an allowance based on historic credits and management estimates. The Company also participates in cooperative advertising arrangements with some customers, whereby it allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. Generally, these allowances range from 1% to 20% of gross sales, and are generally based upon product purchases or specific advertising campaigns. Such allowances are accrued when the related revenue is recognized. To the extent these cooperative advertising arrangements provide a distinct benefit at fair value, they are accounted for as direct selling expenses, otherwise they are recorded as a reduction to revenue. Further, while the Company generally does not allow product returns, the Company does make occasional exceptions to this policy and consequently records a sales return allowance based upon historic return amounts and management estimates. These allowances (variable consideration) are estimated using the expected value method and are recorded at the time of sale as a reduction to revenue. The Company adjusts its estimate of variable consideration at least quarterly or when facts and circumstances used in the estimation process may change. The variable consideration is not constrained as the Company has sufficient history on the related estimates and does not believe there is a risk of significant revenue reversal. Sales commissions are expensed when incurred as the related revenue is recognized at a point in time and therefore the amortization period is less than one year. As a result, these costs are recorded as direct selling expenses, as incurred. Shipping and handling activities are considered part of the Company’s obligation to transfer the products and therefore are recorded as direct selling expenses, as incurred. For the three months ended March 31, 2023 and 2022, shipping and handling costs were $1.9 million and $1.5 million, respectively. The Company’s reserve for sales returns and allowances amounted to $41.1 million as of March 31, 2023, compared to $51.9 million as of December 31, 2022. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note 5 Debt Term Loan Term loan consists of the following (in thousands): March 31, 2023 December 31, 2022 Debt Discount/ Debt Discount/ Principal Issuance Net Principal Issuance Net Amount Costs* Amount Amount Costs* Amount 2021 BSP Term Loan $ 30,183 $ (739 ) $ 29,444 $ 68,901 $ (1,750 ) $ 67,151 * The term loan was valued using the discounted cash flow method to determine the implied debt discount. The debt discount and issuance costs are amortized over the life of the term loan on a straight-line basis which approximates the effective interest method. On June 2, 2021, the Company and certain of its subsidiaries, as borrowers, entered into a First Lien Term Loan Facility Credit Agreement (the “2021 BSP Term Loan Agreement”) with Benefit Street Partners L.L.C., as Sole Lead Arranger, and BSP Agency, LLC, as agent, for a $99.0 million first-lien secured term loan (the “Initial Term Loan”) and a $19.0 million delayed draw term loan (the “Delayed Draw Term Loan” and collectively, the “2021 BSP Term Loan”). Net proceeds from the issuance of the 2021 BSP Term Loan, after deduction of $2.2 million in closing fees and $0.5 million of other administrative fees paid directly to the lenders, totaled $96.3 million. These fees are amortized over the life of the 2021 BSP Term Loan on a straight-line basis which approximates the effective interest method. Proceeds from the Initial Term Loan, together with available cash from the Company, were used to repay the Company’s former term loan (the “2019 Recap Term Loan” formerly known as the “New Term Loan” in prior filings) under the agreement dated as of August 9, 2019 with Cortland Capital Market Services LLC, as agent for certain investor parties. The Delayed Draw Term Loan provision was designed to provide necessary capital to redeem any of the Company’s outstanding 3.25% convertible senior notes due 2023, upon their maturity, which, upon repayment of the 2019 Recap Term Loan, accelerated to no later than 91 days from the repayment of the 2019 Recap Term Loan, or September 1, 2021. On July 29, 2021, the Company terminated its Delayed Draw Term Loan option as it determined it had sufficient liquidity to fund any outstanding convertible senior notes that remained upon maturity. Amounts outstanding under the 2021 BSP Term Loan bear interest at either (i) LIBOR plus 6.50% - 7.00% (determined by reference to a net leverage pricing grid), subject to a 1.00% LIBOR floor, or (ii) base rate plus 5.50% - 6.00% (determined by reference to a net leverage pricing grid), subject to a 2.00% base rate floor. The 2021 BSP Term Loan matures in June 2027. In January 2023, the Company entered into a second amendment for its 2021 BSP Term Loan Agreement, which transitioned the interest reference rate on its 2021 BSP Term Loan from LIBOR to the Secured Overnight Financing Rate (“SOFR”). The new interest reference rate for the 2021 BSP Term Loan will be effective on April 1, 2023. In addition to the transition to SOFR, the amendment also includes a constant 0.10% spread adjustment until the maturity of the 2021 BSP Term Loan. The 2021 BSP Term Loan Agreement contains negative covenants that, subject to certain exceptions, limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge its assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. Commencing with the fiscal quarter ending June 30, 2021, the Company is required to maintain a Net Leverage Ratio of 4:00x, with step-downs occurring each fiscal year starting with the quarter ending March 31, 2022 through the quarter ending September 30, 2024 in which the Company is required to maintain a Net Leverage Ratio of 3:00x. On April 26, 2022, the Company entered into a First Amendment to the 2021 BSP Term Loan Agreement, to provide, among other things, that the Company must maintain Qualified Cash of at least: (a) at all times after the Closing Date and prior to the First Amendment Effective Date, April 26, 2022, $20.0 million; (b) at all times during the period commencing on the First Amendment Effective Date through and including June 30, 2022, $15.0 million; and (c) at all times on and after July 1, 2022, through September 30, 2022, $17.5 million; provided, however, that if the Total Net Leverage Ratio exceeded 1.75:1.00 as of the last day of the most recently ended month for which financial statements were required to have been delivered, then the amount set forth in this clause shall be increased to $20.0 million. Notwithstanding the foregoing, the Applicable Minimum Cash Amount shall be reduced by $1.0 million for every $5.0 million principal prepayment or repayment of the Term Loans following the First Amendment Effective Date; provided however, that, the Applicable Minimum Cash Amount shall in no event be reduced below $15.0 million. On June 27, 2022, as permitted by the terms within the 2021 BSP Term Loan Agreement, the Company made a voluntary fee-free $10.0 million prepayment towards the outstanding principal amount of the 2021 BSP Term Loan. On September 28, 2022, as permitted by the terms within the 2021 BSP Term Loan Agreement, the Company made a voluntary $17.5 million prepayment towards the outstanding principal amount of the 2021 BSP Term Loan and incurred a $0.5 million prepayment penalty. On January 3, 2023, as permitted by the terms within the 2021 BSP Term Loan Agreement, the Company made a voluntary $15.0 million prepayment towards the outstanding principal amount of the 2021 BSP Term Loan and incurred a $0.2 million prepayment penalty. On March 3, 2023, as required by the terms within the 2021 BSP Term Loan Agreement under the Excess Cash Flow (“ECF”) Sweep provision, the Company made a mandatory $23.1 million payment towards the outstanding principal amount of the 2021 BSP Term Loan. The 2021 BSP Term Loan Agreement contains events of default that are customary for a facility of this nature, including (subject in certain cases to grace periods and thresholds) nonpayment of principal, nonpayment of interest, fees or other amounts, material inaccuracy of representations and warranties, violation of covenants, cross-default to certain other existing indebtedness, bankruptcy or insolvency events, certain judgment defaults and a change of control as specified in the 2021 BSP Term Loan Agreement. If an event of default occurs, the maturity of the amounts owed under the 2021 BSP Term Loan Agreement may be accelerated. The obligations under the 2021 BSP Term Loan Agreement are guaranteed by the Company, the subsidiary borrowers thereunder and certain of the other existing and future direct and indirect subsidiaries of the Company and are secured by substantially all of the assets of the Company, the subsidiary borrowers thereunder and such other subsidiary guarantors, in each case, subject to certain exceptions and permitted liens and subject to the priority lien granted under the JPMorgan ABL Credit Agreement (see Note 6 – Credit Facility). The agent and Sole Lead Arranger under the 2021 BSP Term Loan are affiliates of an affiliate of the Company, which affiliate, at the time of refinancing, owned common stock, and the 3.25% convertible senior notes due 2023 of the Company as well as the Company’s outstanding Series A Preferred Stock. Amortization expense classified as interest expense related to the $0.3 million of debt issuance costs associated with the issuance of the 2021 BSP Term Loan was $26,784 for the three months ended March 31, 2023, and $43,584 for the three months ended March 31, 2022. Amortization expense classified as interest expense related to the $0.7 million debt discount associated with the issuance of the 2021 BSP Term Loan was $57,867 for the three months ended March 31, 2023, and $94,164 for the three months ended March 31, 2022. The fair value of the Company’s 2021 BSP Term Loan is considered Level 3 fair value (see Note 15 – Fair Value Measurements for further discussion of the fair value hierarchy) and are measured using the discounted future cash flow method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a debt security with comparable risk. This assumption is considered an unobservable input in that it reflects the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. The estimated fair value of the 2021 BSP Term Loan was $31.0 million and $69.3 million as of March 31, 2023 and December 31, 2022, respectively, compared to a carrying value of $30.2 million and $68.9 million as of March 31, 2023 and December 31, 2022, respectively. As of March 31, 2023, the Company was in compliance with the financial covenants under the 2021 BSP Term Loan Agreement. |
Credit Facilities
Credit Facilities | 3 Months Ended |
Mar. 31, 2023 | |
Credit Facilities Abstract | |
Credit Facilities [Text Block] | Note 6 Credit Facilities JPMorgan Chase On June 2, 2021, the Company and certain of its subsidiaries, as borrowers, entered into a Credit Agreement (the “JPMorgan ABL Credit Agreement”), with JPMorgan Chase Bank, N.A., as agent and lender for a $67,500,000 senior secured revolving credit facility (the “JPMorgan ABL Facility”). The JPMorgan ABL Credit Agreement replaced the Company’s existing asset-based revolving credit agreement, dated as of March 27, 2014 (the “Wells Fargo ABL Facility,” formerly known as the “Amended ABL Facility” in prior filings), with General Electric Capital Corporation, since assigned to Wells Fargo Bank, National Association. The Company pays a commitment fee (0.25% - 0.375%) based on the unused portion of the revolving credit facility. Any amounts borrowed under the JPMorgan ABL Facility will bear interest at either (i) LIBOR plus 1.50% - 2.00% (determined by reference to an excess availability pricing grid) or (ii) Alternate Base Rate plus 0.50% - 1.00% (determined by reference to an excess availability pricing grid and base rate subject to a 1.00% floor). The JPMorgan ABL Facility matures in June 2026. As of March 31, 2023, the weighted average interest rate on the credit facility with JPMorgan Chase Bank was nil In March 2023, the Company entered into a first amendment for its JPMorgan ABL Credit Agreement, which transitioned the interest reference rate on its JPMorgan ABL Facility from LIBOR to the Secured Overnight Financing Rate (“SOFR”). The new interest reference rate for the ABL Facility became effective on March 16, 2023. Any amounts borrowed under the JPMorgan ABL Facility will bear interest at either (i) SOFR plus 1.50% - 2.00% (determined by reference to an excess availability pricing grid) plus a constant 0.10% spread adjustment or (ii) Alternate Base Rate plus 0.50% - 1.00% (determined by reference to an excess availability pricing grid and base rate subject to a 1.00% floor). The JPMorgan ABL Credit Agreement contains negative covenants that, subject to certain exceptions, limit the ability of the Company and its subsidiaries to, among other things, incur additional indebtedness, make restricted payments, pledge their assets as security, make investments, loans, advances, guarantees and acquisitions, undergo fundamental changes and enter into transactions with affiliates. Under certain circumstances the Company is also subject to a springing fixed charge coverage ratio covenant of not less than 1.1 to 1.0, as described in more detail in the JPMorgan ABL Credit Agreement. The JPMorgan ABL Credit Agreement contains events of default that are customary for a facility of this nature, including (subject in certain cases to grace periods and thresholds) nonpayment of principal, interest, fees or other amounts, material inaccuracy of representations and warranties, violation of covenants, cross-default to certain other existing indebtedness, bankruptcy or insolvency events, certain judgment defaults, loss of liens or guarantees and a change of control as specified in the JPMorgan ABL Credit Agreement. If an event of default occurs, the commitments of the lenders to lend under the JPMorgan ABL Credit Agreement may be terminated and the maturity of the amounts owed may be accelerated. The obligations under the JPMorgan ABL Credit Agreement are guaranteed by the Company, the subsidiary borrowers thereunder and certain of the other existing and future direct and indirect subsidiaries of the Company and are secured by substantially all of the assets of the Company, the subsidiary borrowers thereunder and such other subsidiary guarantors, in each case, subject to certain exceptions and permitted liens. As of March 31, 2023, the amount of outstanding borrowings was nil As of March 31, 2023, off-balance sheet arrangements include letters of credit issued by JPMorgan of $17.2 million. Amortization expense classified as interest expense related to the $1.6 million of debt issuance costs associated with the transaction that closed on June 2, 2021 (i.e., JPMorgan ABL Credit Agreement) was $0.1 million for the three months ended March 31, 2023 and March 31, 2022. As of March 31, 2023, the Company was in compliance with the financial covenants under the JPMorgan ABL Credit Agreement. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 7 Income Taxes The Company’s income tax benefit of $1.4 million for the three months ended March 31, 2023, reflects an effective tax rate of 20.6%. The Company’s income tax expense of $0.4 million for the three months ended March 31, 2022, reflects an effective tax rate of (11.9)%. The tax benefit for the three months ended March 31, 2023, primarily relates to discrete items and the tax benefit related to the overall worldwide loss (i.e. federal, state, and foreign). The tax expense for the three months ended March 31, 2022 primarily relates to foreign income taxes and discrete items. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 8 Loss Per Share The following table is a reconciliation of the weighted average shares used in the computation of loss per share for the periods presented (in thousands, except per share data): Three Months Ended Loss per share - basic and diluted 2023 2022 Net loss $ (5,318 ) $ (3,909 ) Net loss attributable to non-controlling interests (5 ) (100 ) Net loss attributable to JAKKS Pacific, Inc. (5,313 ) (3,809 ) Preferred stock dividend * 367 346 Net loss attributable to common stockholders ** $ (5,680 ) $ (4,155 ) Weighted average common shares outstanding - basic and diluted 9,871 9,588 Loss per share available to common stockholder - basic and diluted $ (0.58 ) $ (0.43 ) * The 200,000 shares issued and outstanding are non-participating. ** Net loss attributable to common stockholders was computed by deducting preferred dividends of $0.4 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively. Basic loss per share is calculated using the weighted average number of common shares outstanding during the period. Diluted loss per share is calculated using the weighted average number of common shares and common share equivalents outstanding during the period (which consist of restricted stock units to the extent they are dilutive). Potentially dilutive restricted stock units of 494,106 and 310,907 for the three months ended March 31, 2023 and 2022, respectively, were excluded from the computation of diluted loss per share since they would have been anti-dilutive. |
Common Stock and Preferred Stoc
Common Stock and Preferred Stock | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity [Text Block] | Note 9 Common Stock and Preferred Stock Common Stock All issuances of common stock, including those issued pursuant to restricted stock or unit grants, are issued from the Company’s authorized but not issued and outstanding shares. During 2022, certain employees, including two executive officers, surrendered an aggregate of 113,162 shares of restricted stock units for $1.4 million to cover income taxes due on the vesting of restricted shares. Additionally, an aggregate of 149,238 shares of restricted stock granted in 2019 with a value of approximately $2.2 million was forfeited during 2022. During 2023, certain employees, including two executive officers, surrendered an aggregate of 69,358 shares of restricted stock for $1.2 million to cover income taxes due on the vesting of restricted shares. Additionally, an aggregate of 2,206 shares of restricted stock granted in 2019 with the value of approximately $41,000 was forfeited during 2023. No dividend was declared or paid in the three months ended March 31, 2023 and 2022. At the Market Offering On July 1, 2022, the Company entered into an At the Market Issuance Sales Agreement (“ATM Agreement”) with B. Riley, as agent pursuant to which the Company may, from time to time, sell shares of its common stock, up to $75 million of common stock, in one or more offerings in amounts, prices and at terms that the Company will determine at the time of the offering. As of March 31, 2023, the Company has not sold any shares of common stock under the ATM Agreement. The Company has on file with the SEC an effective registration statement pursuant to which it may issue, from time to time, up to an additional $75 million of securities consisting of, or any combination of, common stock, preferred stock, debt securities, warrants, rights and/or units, in one or more offerings in amounts, prices and at terms that the Company will determine at the time of the offering. As of March 31, 2023, the Company has not sold any securities pursuant to its shelf registration statement. Redeemable Preferred Stock On August 9, 2019, the Company entered into and consummated multiple, binding definitive agreements (collectively, the “Recapitalization Transaction”) among various investor parties to recapitalize the Company’s balance sheet. In connection with the Recapitalization Transaction, the Company issued 200,000 shares of Series A Senior Preferred Stock (the “Series A Preferred Stock”), $0.001 par value per share, to the Investor Parties (the “New Preferred Equity”). As of March 31, 2023 and December 31, 2022, 200,000 shares of Series A Preferred Stock were outstanding. Each share of Series A Preferred Stock has an initial value of $100 per share, which is automatically increased for any accrued and unpaid dividends (the “Accreted Value”). The Series A Preferred Stock has the right to receive dividends on a quarterly basis equal to 6.0% per annum, payable in cash or, if not paid in cash, by an automatic accretion of the Series A Preferred Stock. No cash dividends have been declared or paid. For the three months ended March 31, 2023 and 2022, the Company recorded $0.4 million and $0.3 million, respectively, of preferred stock dividends as an increase in the value of the Series A Preferred Stock. The Series A Preferred Stock has no stated maturity, however, the Company has the right to redeem all or a portion of the Series A Preferred Stock at its Liquidation Preference (as defined below) at any time after payment in full of the 2019 Recap Term Loan. In addition, upon the occurrence of certain change of control type events, holders of the Series A Preferred Stock are entitled to receive an amount (the “Liquidation Preference”), in preference to holders of Common Stock or other junior stock, equal to (i) 20% of the Accreted Value in the case of a certain specified transaction, or (ii) otherwise, 150% of the Accreted value, plus any accrued and unpaid dividends. The Company has the right, but is not required, to repurchase all or a portion of the Series A Preferred Stock at its Liquidation Preference at any time after payment in full of the 2019 Recap Term Loan. The Series A Preferred Stock does not have any voting rights, except to the extent required by the Delaware General Corporation Law, except for the exclusive right to elect the Series A Preferred Directors (as described below) and except for certain approval rights over certain transactions (as described below). These approval rights require the prior consent of specified percentages of holders (or in certain cases, all holders) of the Series A Preferred Stock in order for the Company to take certain actions, including the issuance of additional shares of Series A Preferred Stock or parity stock, the issuance of senior stock, certain amendments to the Amended and Restated Certificate of Incorporation, the Certificate of Designations of the Series A Preferred Stock (the “Certificate of Designations”), the Second Amended and Restated By-laws or the Amended and Restated Nominating and Corporate Governance Committee Charter, material changes in the Company’s line of business and certain change of control type transactions. In addition, the Certificate of Designations provides that the approval of at least six directors is required for any related person transaction within the meaning of Item 404 of Regulation S-K under the Securities Act of 1933, as amended, including, without limitation, the adoption of, or any amendment, modification or waiver of, any agreement or arrangement related to any such transaction. The Certificate of Designations also includes restrictions on the ability of the Company to pay dividends on or make distributions with respect to, or redeem or repurchase, shares of Common Stock or other junior stock. In addition, holders of the Series A Preferred Stock have preemptive rights regarding future issuance of Series A Preferred Stock or parity stock. In 2022, an agreement was reached with the preferred shareholders to eliminate their ability to elect members to the Company’s Board of Directors on a going-forward basis. The Series A Preferred Stock redemption amount is contingent upon certain events with no stated redemption date as of the reporting date, although may become redeemable in the future. In accordance with the SEC guidance within ASC Topic 480, Distinguishing Liabilities from Equity: Classification and Measurement of Redeemable Securities Under ASC 815, Derivatives and Hedging The embedded redemption upon a change of control must be accounted for separately from the Series A Preferred Stock. The redemption provision specifies if certain events that constitute a change of control occur, the Company may be required to settle the Series A Preferred Stock at 150% of its accreted amount. Accordingly, the redemption provision meets the definition of a derivative, and its economic characteristics are not considered clearly and closely related to the economic characteristics of the Series A Preferred Stock, and is more akin to a debt instrument than equity. The Company considers the repurchase option to have no value as the likelihood is remote that this event, within the Company’s control, would ever occur. The liability is accounted for at fair value, with changes in fair value recognized as other income (expense) on the Company's condensed consolidated statements of operations (see Note 15 – Fair Value Measurement). The value of the redemption provision explicitly considered the present value of the potential premium that would be paid related to, and the probability of, an event that would trigger its payment. The probability of a triggering event was based on management’s estimates of the probability of a change of control event occurring. Accordingly, these two embedded derivatives are accounted for separately from the Series A Preferred Stock at fair value. As of March 31, 2023, the Series A Preferred Stock is recorded in temporary equity at the amount of accrued, but unpaid dividends of $4.9 million, and the redemption provision, as a bifurcated derivative, is recorded as a long-term liability with an estimated value of $21.8 million. As of December 31, 2022, the Series A Preferred Stock is recorded in temporary equity at the amount of accrued, but unpaid dividends of $4.5 million, and the redemption provision, as a bifurcated derivative, is recorded as a long-term liability with an estimated value of $21.9 million. As of March 31, 2023, the Series A Preferred Stock had a carrying value of $24.9 million and a liquidation value of $37.3 million. As of December 31, 2022, the Series A Preferred Stock had a carrying value of $24.5 million and a liquidation value of $36.7 million. The following table provides a reconciliation of the beginning and ending balances of the Series A Preferred Stock, which is recorded in temporary equity: 2023 2022 Balance, January 1, $ 4,490 $ 3,074 Preferred stock accrued dividends 367 346 Balance, March 31, $ 4,857 $ 3,420 |
Joint Ventures
Joint Ventures | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 10 Joint Ventures In November 2014, the Company entered into a joint venture with Meisheng Culture & Creative Corp., Ltd., (“MC&C”) for the purpose of providing certain JAKKS licensed and non-licensed toys and consumer products to agreed-upon territories of the People’s Republic of China. The joint venture includes a subsidiary in the Shanghai Free Trade Zone that sells, distributes and markets these products, which include dolls, plush, role play products, action figures, costumes, seasonal items, technology and app-enhanced toys, based on top entertainment licenses and JAKKS’ own proprietary brands. The Company owns fifty-one percent of the joint venture and consolidates the joint venture since control rests with the Company. The non-controlling interest’s share of the loss was $5,000 and $0.1 million for the three months ended March 31, 2023 and 2022, respectively. In October 2016, the Company entered into a joint venture with Hong Kong Meisheng Cultural Company Limited ("Meisheng"), a Hong Kong-based subsidiary of Meisheng Culture & Creative Corp., for the purpose of creating and developing original, multiplatform content for children including new short-form series and original shows. JAKKS and Meisheng each own fifty percent of the joint venture and will jointly own the content. JAKKS will retain merchandising rights for kids’ consumer products in all markets except China, which Meisheng Culture & Creative Corp. will oversee through the Company’s existing distribution joint venture. The results of operations of the joint venture are consolidated with the Company's results. The non-controlling interest’s share of the income (loss) from the joint venture for the three months ended March 31, 2023 and 2022 was nil |
Goodwill
Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Goodwill Disclosure [Text Block] | Note 11 Goodwill The Company applies a fair value-based impairment test to the carrying value of goodwill and indefinite-lived intangible assets on an annual basis and, on an interim basis, if certain events or circumstances indicate that an impairment loss may have been incurred. Goodwill impairment exists when the estimated fair value of goodwill is less than its carrying value. For the three months ended March 31, 2023, there were no events or circumstances that indicated that an impairment loss may have been incurred. |
Comprehensive Loss
Comprehensive Loss | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 12 Comprehensive Loss The table below presents the components of the Company’s comprehensive loss for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Net loss $ (5,318 ) $ (3,909 ) Other comprehensive income (loss): Foreign currency translation adjustment 332 (662 ) Comprehensive loss (4,986 ) (4,571 ) Less: Comprehensive loss attributable to non-controlling interests (5 ) (100 ) Comprehensive loss attributable to JAKKS Pacific, Inc. $ (4,981 ) $ (4,471 ) |
Litigation and Contingencies
Litigation and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 13 Litigation and Contingencies The Company is a party to, and certain of its property is the subject of, various pending claims and legal proceedings that routinely arise in the ordinary course of its business. The Company accrues for losses when the loss is deemed probable and the liability can reasonably be estimated. Where a liability is probable and there is a range of estimated loss with no best estimate in the range, the Company records the minimum estimated liability related to the claim. As additional information becomes available, the Company assesses the potential liability related to its pending litigation and revises its estimates. In the normal course of business, the Company may provide certain indemnifications and/or other commitments of varying scope to a) its licensors, customers and certain other parties, including against third-party claims of intellectual property infringement, and b) its officers, directors and employees, including against third-party claims regarding the periods in which they serve in such capacities with the Company. The duration and amount of such obligations is, in certain cases, indefinite. The Company's director’s and officer’s liability insurance policy may, however, enable it to recover a portion of any future payments related to its officer, director or employee indemnifications. For the past five years, costs related to director and officer indemnifications have not been significant. Other than certain liabilities recorded in the normal course of business related to royalty payments due to the Company's licensors, no liabilities have been recorded for indemnifications and/or other commitments. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement [Text Block] | Note 14 Share-Based Payments The Company’s 2002 Stock Award and Incentive Plan (the “Plan”), as amended, provides for the awarding of stock options, restricted stock and restricted stock units to certain key employees, executive officers and non-employee directors. Current awards under the Plan include grants to executive officers and certain key employees of restricted stock units, with vesting contingent upon (a) the completion of specified service periods ranging from one to four years and/or (b) meeting certain financial performance and/or market-based metrics. Shares for the restricted stock units are not issued until they vest. The following table summarizes the total share-based compensation expense recognized for the three months ended March 31, 2023 and 2022 (in thousands) Three Months Ended March 31, 2023 2022 Share-based compensation expense $ 2,089 $ 870 Restricted Stock Units Restricted stock unit activity (including those with performance-based vesting criteria) for the three months ended March 31, 2023 is summarized as follows: Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Outstanding, December 31, 2022 1,408,586 $ 12.82 Granted 278,081 17.49 Vested (191,423 ) 8.44 Outstanding, March 31, 2023 1,495,244 14.25 As of March 31, 2023, there was $17.4 million of total unrecognized compensation cost related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 2.5 years. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 15 Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based upon these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based upon observable inputs used in the valuation techniques, the Company is required to provide information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values into three broad levels as follows: Level 1: Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2: Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. Level 3: Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. In instances where the determination of the fair value measurement is based upon inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based upon the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. The following tables summarize the Company's financial liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (in thousands): Fair Value Measurements as of March 31, 2023 Level 1 Level 2 Level 3 Preferred stock derivative liability $ — $ — $ 21,771 Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Preferred stock derivative liability $ — $ — $ 21,918 The following tables provide a reconciliation of the beginning and ending balances of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Preferred stock derivative liability 2023 2022 Balance, January 1, $ 21,918 $ 21,282 Change in fair value (147 ) 645 Balance, March 31, $ 21,771 $ 21,927 The Company’s Series A Preferred derivative liability is classified within Level 3 of the fair value hierarchy because unobservable inputs were used in estimating the fair value. The fair value of the redemption provision embedded in the Series A Preferred Stock is estimated based on a discounted cash flow model and probability assumptions based on management’s estimates of a change of control event occurring. The value of the redemption provision explicitly considered the present value of the potential premium that would be paid related to, and the probability of, an event that would trigger its payment. In subsequent periods, the derivative liability is accounted for at fair value, with changes in fair value recognized as other income (expense) on the Company's condensed consolidated statements of operations. The following table provides quantitative information of liabilities measured at fair value and the significant unobservable inputs (Level 3), the range of the significant unobservable inputs, and the valuation techniques. Fair Value As of March 31, 2023 Valuation Technique Unobservable Inputs Range (Weighted Average) (In thousands) Preferred Stock Derivative Liability $ 21,771 Discounted Cash Flow Change-in-control probability assumptions Range: 10% to 40% (27.2%) Timing of change-in-control assumptions Range: 1 to 10 years (4.16 years) Discount Rate Range: 18.16% to 18.91% (18.59%) Implied yield* 11.41%* Fair Value As of December 31, 2022 Valuation Technique Unobservable Inputs Range (Weighted Average) (In thousands) Preferred Stock Derivative Liability $ 21,918 Discounted Cash Flow Change-in-control probability assumptions Range: 10% to 40% (27.3%) Timing of change-in-control assumptions Range: 1 to 10 years (4.19 years) Discount Rate Range: 17.48% to 18.23% (17.70%) Implied yield* 11.23%* *Represents the implied yield of the 2021 BSP Term Loan The Company’s cash and cash equivalents including restricted cash, accounts receivable, accounts payable, and accrued expenses represent financial instruments. The carrying value of these financial instruments is a reasonable approximation of fair value due to the short-term nature of the instruments. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 16 Related Party Transactions In November 2014, the Company entered into a joint venture with MC&C for the purpose of providing certain JAKKS licensed and non-licensed toys and consumer products to agreed-upon territories of the People’s Republic of China (see Note 10 – Joint Ventures). In October 2016, the Company entered into a joint venture with Hong Kong Meisheng Cultural Company Limited, a Hong Kong-based subsidiary of Meisheng Culture & Creative Corp, for the purpose of creating and developing original, multiplatform content for children including new short-form series and original shows (see Note 10 – Joint Ventures). In March 2017, the Company entered into an equity purchase agreement with Meisheng which provided, among other things, that as long as Meisheng and its affiliates hold 10% or more of the issued and outstanding shares of common stock of the Company, Meisheng shall have the right from time to time to designate a nominee (who currently is Mr. Xiaoqiang Zhao) for election to the Company’s board of directors. Meisheng also serves as a significant manufacturer of the Company. For the three months ended March 31, 2023 and 2022, the Company made inventory-related payments to Meisheng of approximately $9.3 million and $15.5 million, respectively. As of March 31, 2023 and December 31, 2022, amounts due to Meisheng for inventory received by the Company, but not paid totaled $8.0 million and $9.8 million, respectively. A director of the Company is a director at Benefit Street Partners, who owns 145,788 shares of the Series A Preferred Stock (see Note 9 – Common Stock and Preferred Stock). As of March 31, 2023, a division of Benefit Street Partners held $30.2 million in principal amount of the 2021 BSP Term Loan (see Note 5 - Debt). |
Prepaid Expense and Other Asset
Prepaid Expense and Other Assets | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Other Current Assets [Text Block] | Note 17 Prepaid Expenses and Other Assets Prepaid expenses and other assets as of March 31,2023 and December 31, 2022 consist of the following (in thousands): March 31, December 31, Royalty advances $ 5,767 $ 1,822 Prepaid expenses 4,482 994 Income tax receivable 2,220 2,217 Employee retention credit 265 1,179 Other assets 115 119 Prepaid expenses and other assets $ 12,849 $ 6,331 |
Business Segments, Geographic_2
Business Segments, Geographic Data, and Sales by Major Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Results are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the three months ended March 31, 2023 and 2022 and as of March 31, 2023 and December 31, 2022 are as follows (in thousands): ` Three Months Ended March 31, 2023 2022 Net Sales Toys/Consumer Products $ 97,893 $ 111,123 Costumes 9,591 9,758 $ 107,484 $ 120,881 Three Months Ended March 31, 2023 2022 Income (Loss) from Operations Toys/Consumer Products $ (1,161 ) $ 2,007 Costumes (3,239 ) (2,741 ) $ (4,400 ) $ (734 ) Three Months Ended March 31, 2023 2022 Depreciation and Amortization Expense Toys/Consumer Products $ 1,160 $ 1,725 Costumes 31 87 $ 1,191 $ 1,812 March 31, December 31, 2023 2022 Assets Toys/Consumer Products $ 298,215 $ 377,605 Costumes 31,171 27,737 $ 329,386 $ 405,342 |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Net revenues are categorized based upon location of the customer, while long-lived assets are categorized based upon the location of the Company’s assets. The following tables present information about the Company by geographic area as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 (in thousands): March 31, December 31, 2023 2022 Long-lived Assets China $ 15,608 $ 14,161 United States 15,224 17,383 Hong Kong 1,931 2,142 United Kingdom 936 974 Mexico 64 69 Canada 40 46 $ 33,803 $ 34,775 Three Months Ended March 31, 2023 2022 Net Sales by Customer Area United States $ 80,443 $ 97,050 Europe 10,162 13,389 Latin America 9,204 2,385 Canada 4,054 3,379 Australia & New Zealand 1,608 1,491 Asia 1,380 2,076 Middle East & Africa 633 1,111 $ 107,484 $ 120,881 |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Net sales to major customers for the three months ended March 31, 2023 and 2022 were as follows (in thousands, except for percentages): Three Months Ended March 31, 2023 2022 Percentage Percentage Amount of Net Sales Amount of Net Sales Target $ 29,404 27.4 % $ 35,670 29.5 % Wal-Mart 23,283 21.7 23,020 19.0 Amazon 6,601 6.1 14,016 11.6 $ 59,288 55.2 % $ 72,706 60.1 % |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory, which includes the ex-factory cost of goods, capitalized warehouse costs, and in-bound freight and duty, is valued at the lower of cost or net realizable value, net of inventory obsolescence reserve, and consists of the following (in thousands): March 31, December 31, 2023 2022 Raw materials $ 55 $ 69 Finished goods 63,933 80,550 $ 63,988 $ 80,619 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | Term loan consists of the following (in thousands): March 31, 2023 December 31, 2022 Debt Discount/ Debt Discount/ Principal Issuance Net Principal Issuance Net Amount Costs* Amount Amount Costs* Amount 2021 BSP Term Loan $ 30,183 $ (739 ) $ 29,444 $ 68,901 $ (1,750 ) $ 67,151 * The term loan was valued using the discounted cash flow method to determine the implied debt discount. The debt discount and issuance costs are amortized over the life of the term loan on a straight-line basis which approximates the effective interest method. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table is a reconciliation of the weighted average shares used in the computation of loss per share for the periods presented (in thousands, except per share data): Three Months Ended Loss per share - basic and diluted 2023 2022 Net loss $ (5,318 ) $ (3,909 ) Net loss attributable to non-controlling interests (5 ) (100 ) Net loss attributable to JAKKS Pacific, Inc. (5,313 ) (3,809 ) Preferred stock dividend * 367 346 Net loss attributable to common stockholders ** $ (5,680 ) $ (4,155 ) Weighted average common shares outstanding - basic and diluted 9,871 9,588 Loss per share available to common stockholder - basic and diluted $ (0.58 ) $ (0.43 ) * The 200,000 shares issued and outstanding are non-participating. ** Net loss attributable to common stockholders was computed by deducting preferred dividends of $0.4 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively. |
Common Stock and Preferred St_2
Common Stock and Preferred Stock (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Temporary Equity [Table Text Block] | The following table provides a reconciliation of the beginning and ending balances of the Series A Preferred Stock, which is recorded in temporary equity: 2023 2022 Balance, January 1, $ 4,490 $ 3,074 Preferred stock accrued dividends 367 346 Balance, March 31, $ 4,857 $ 3,420 |
Comprehensive Loss (Tables)
Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | The table below presents the components of the Company’s comprehensive loss for the three months ended March 31, 2023 and 2022 (in thousands): Three Months Ended March 31, 2023 2022 Net loss $ (5,318 ) $ (3,909 ) Other comprehensive income (loss): Foreign currency translation adjustment 332 (662 ) Comprehensive loss (4,986 ) (4,571 ) Less: Comprehensive loss attributable to non-controlling interests (5 ) (100 ) Comprehensive loss attributable to JAKKS Pacific, Inc. $ (4,981 ) $ (4,471 ) |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following table summarizes the total share-based compensation expense recognized for the three months ended March 31, 2023 and 2022 (in thousands) Three Months Ended March 31, 2023 2022 Share-based compensation expense $ 2,089 $ 870 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Restricted Stock Units Number of Shares Weighted Average Grant Date Fair Value Outstanding, December 31, 2022 1,408,586 $ 12.82 Granted 278,081 17.49 Vested (191,423 ) 8.44 Outstanding, March 31, 2023 1,495,244 14.25 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables summarize the Company's financial liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (in thousands): Fair Value Measurements as of March 31, 2023 Level 1 Level 2 Level 3 Preferred stock derivative liability $ — $ — $ 21,771 Fair Value Measurements as of December 31, 2022 Level 1 Level 2 Level 3 Preferred stock derivative liability $ — $ — $ 21,918 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following tables provide a reconciliation of the beginning and ending balances of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands): Preferred stock derivative liability 2023 2022 Balance, January 1, $ 21,918 $ 21,282 Change in fair value (147 ) 645 Balance, March 31, $ 21,771 $ 21,927 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | The following table provides quantitative information of liabilities measured at fair value and the significant unobservable inputs (Level 3), the range of the significant unobservable inputs, and the valuation techniques. Fair Value As of March 31, 2023 Valuation Technique Unobservable Inputs Range (Weighted Average) (In thousands) Preferred Stock Derivative Liability $ 21,771 Discounted Cash Flow Change-in-control probability assumptions Range: 10% to 40% (27.2%) Timing of change-in-control assumptions Range: 1 to 10 years (4.16 years) Discount Rate Range: 18.16% to 18.91% (18.59%) Implied yield* 11.41%* Fair Value As of December 31, 2022 Valuation Technique Unobservable Inputs Range (Weighted Average) (In thousands) Preferred Stock Derivative Liability $ 21,918 Discounted Cash Flow Change-in-control probability assumptions Range: 10% to 40% (27.3%) Timing of change-in-control assumptions Range: 1 to 10 years (4.19 years) Discount Rate Range: 17.48% to 18.23% (17.70%) Implied yield* 11.23%* *Represents the implied yield of the 2021 BSP Term Loan |
Prepaid Expense and Other Ass_2
Prepaid Expense and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Disclosure Text Block Supplement [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | Prepaid expenses and other assets as of March 31,2023 and December 31, 2022 consist of the following (in thousands): March 31, December 31, Royalty advances $ 5,767 $ 1,822 Prepaid expenses 4,482 994 Income tax receivable 2,220 2,217 Employee retention credit 265 1,179 Other assets 115 119 Prepaid expenses and other assets $ 12,849 $ 6,331 |
Cash Flow, Supplemental Discl_2
Cash Flow, Supplemental Disclosures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | ||
Purchase of property and equipment incurred | $ 2.6 | $ 3.3 |
Business Segments, Geographic_3
Business Segments, Geographic Data, and Sales by Major Customers (Details) - Schedule of Segment Reporting Information, by Segment - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Net Sales | $ 107,484 | $ 120,881 | |
Income (loss) from Operations | (4,400) | (734) | |
Depreciation and Amortization Expense | 1,191 | 1,812 | |
Assets | 329,386 | $ 405,342 | |
Toys/Consumer Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 97,893 | 111,123 | |
Income (loss) from Operations | (1,161) | 2,007 | |
Depreciation and Amortization Expense | 1,160 | 1,725 | |
Assets | 298,215 | 377,605 | |
Costumes [Member] | |||
Segment Reporting Information [Line Items] | |||
Net Sales | 9,591 | 9,758 | |
Income (loss) from Operations | (3,239) | (2,741) | |
Depreciation and Amortization Expense | 31 | $ 87 | |
Assets | $ 31,171 | $ 27,737 |
Business Segments, Geographic_4
Business Segments, Geographic Data, and Sales by Major Customers (Details) - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | $ 33,803 | $ 34,775 | |
Net Sales | 107,484 | $ 120,881 | |
CHINA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 15,608 | 14,161 | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 15,224 | 17,383 | |
Net Sales | 80,443 | 97,050 | |
HONG KONG | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 1,931 | 2,142 | |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 936 | 974 | |
MEXICO | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 64 | 69 | |
CANADA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived Assets | 40 | $ 46 | |
Net Sales | 4,054 | 3,379 | |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 10,162 | 13,389 | |
Latin America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 9,204 | 2,385 | |
Australia and New Zealand [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 1,608 | 1,491 | |
Asia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | 1,380 | 2,076 | |
Middle East and Africa [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Sales | $ 633 | $ 1,111 |
Business Segments, Geographic_5
Business Segments, Geographic Data, and Sales by Major Customers (Details) - Schedule of Revenue by Major Customers by Reporting Segments - Revenue Benchmark [Member] - Customer Concentration Risk [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Target [Member] | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | $ 29,404 | $ 35,670 |
Percentage of Net Sales from Major Customer | 27.40% | 29.50% |
Wal Mart [Member] | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | $ 23,283 | $ 23,020 |
Percentage of Net Sales from Major Customer | 21.70% | 19% |
Amazon [Member] | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | $ 6,601 | $ 14,016 |
Percentage of Net Sales from Major Customer | 6.10% | 11.60% |
Major Customers [Member] | ||
Revenue, Major Customer [Line Items] | ||
Net Sales | $ 59,288 | $ 72,706 |
Percentage of Net Sales from Major Customer | 55.20% | 60.10% |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory Valuation Reserves | $ 9.8 | $ 9 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of Inventory, Current - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Inventory Current Abstract | ||
Raw materials | $ 55 | $ 69 |
Finished goods | 63,933 | 80,550 |
Inventory, net | $ 63,988 | $ 80,619 |
Revenue Recognition and Reser_2
Revenue Recognition and Reserve for Sales Returns and Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenue Recognition and Reserve for Sales Returns and Allowances (Details) [Line Items] | |||
Selling Expense | $ 7,741 | $ 4,902 | |
Sales reserves and allowances | 41,100 | $ 51,900 | |
Shipping and Handling [Member] | |||
Revenue Recognition and Reserve for Sales Returns and Allowances (Details) [Line Items] | |||
Selling Expense | $ 1,900 | $ 1,500 | |
Minimum [Member] | |||
Revenue Recognition and Reserve for Sales Returns and Allowances (Details) [Line Items] | |||
Discount on invoiced amount of products | 1% | ||
Maximum [Member] | |||
Revenue Recognition and Reserve for Sales Returns and Allowances (Details) [Line Items] | |||
Discount on invoiced amount of products | 20% |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||||||
Mar. 03, 2023 | Sep. 28, 2022 | Jun. 27, 2022 | Jun. 02, 2021 | Jan. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Jan. 03, 2023 | Dec. 31, 2022 | |
Debt (Details) [Line Items] | |||||||||
Amortization of Debt Discount (Premium) | $ 692,000 | $ 94,000 | |||||||
Initial Term Loan [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 99,000,000 | ||||||||
Proceeds from Issuance of Long-Term Debt | $ 96,300,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||||||
Debt Instrument, Covenant Description | the Company entered into a First Amendment to the 2021 BSP Term Loan Agreement, to provide, among other things, that the Company must maintain Qualified Cash of at least: (a) at all times after the Closing Date and prior to the First Amendment Effective Date, April 26, 2022, $20.0 million; (b) at all times during the period commencing on the First Amendment Effective Date through and including June 30, 2022, $15.0 million; and (c) at all times on and after July 1, 2022, through September 30, 2022, $17.5 million; provided, however, that if the Total Net Leverage Ratio exceeded 1.75:1.00 as of the last day of the most recently ended month for which financial statements were required to have been delivered, then the amount set forth in this clause shall be increased to $20.0 million. Notwithstanding the foregoing, the Applicable Minimum Cash Amount shall be reduced by $1.0 million for every $5.0 million principal prepayment or repayment of the Term Loans following the First Amendment Effective Date; provided however, that, the Applicable Minimum Cash Amount shall in no event be reduced below $15.0 million | ||||||||
Repayments of Debt | $ 17,500,000 | $ 10,000,000 | |||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 500,000 | ||||||||
Initial Term Loan [Member] | London Interbank Offered Rate LIBOR [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate, Constant Spread Adjustment | 0.10% | ||||||||
Initial Term Loan [Member] | Minimum [Member] | London Interbank Offered Rate LIBOR [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 6.50% | ||||||||
Debt Instrument, Description of Variable Rate Basis | subject to a 1.00% LIBOR floor, or (ii) base rate plus 5.50% - 6.00% (determined by reference to a net leverage pricing grid), subject to a 2.00% base rate floor | ||||||||
Initial Term Loan [Member] | Maximum [Member] | London Interbank Offered Rate LIBOR [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 7% | ||||||||
Delayed Draw Term Loan [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Instrument, Face Amount | $ 19,000,000 | ||||||||
Benefit Street Partners [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Issuance Costs, Gross | 300,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||||||
Repayments of Debt | $ 23,100,000 | ||||||||
Long-Term Debt, Fair Value | 31,000,000 | $ 69,300,000 | |||||||
Value of debt outstanding | 30,200,000 | $ 68.9 | |||||||
Amortization of Debt Issuance Costs | 26,784 | 43,584 | |||||||
Debt Instrument, Unamortized Discount | 700,000 | ||||||||
Amortization of Debt Discount (Premium) | 57,867 | $ 94,164 | |||||||
Closing Fees [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 2,200,000 | ||||||||
Other Administrative Fees [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Debt Issuance Costs, Gross | $ 500,000 | ||||||||
Secured Debt [Member] | Initial Term Loan [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Proceeds from Issuance of Long-Term Debt | $ 30,200,000 | ||||||||
Secured Debt [Member] | New Term Loan Agreement [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Long-Term Debt, Fair Value | $ 15,000,000 | ||||||||
Secured Debt [Member] | Reported Value Measurement [Member] | New Term Loan Agreement [Member] | |||||||||
Debt (Details) [Line Items] | |||||||||
Value of debt outstanding | $ 200,000 |
Debt (Details) - Schedule of De
Debt (Details) - Schedule of Debt - Secured Debt [Member] - 2021 BSP Term Loan [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt (Details) - Schedule of Debt [Line Items] | |||
Principal Amount | $ 30,183 | $ 68,901 | |
Debt Discount/ Issuance Costs | [1] | (739) | (1,750) |
Net Amount | $ 29,444 | $ 67,151 | |
[1]The term loan was valued using the discounted cash flow method to determine the implied debt discount. The debt discount and issuance costs are amortized over the life of the term loan on a straight-line basis which approximates the effective interest method. |
Credit Facilities (Details)
Credit Facilities (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jun. 02, 2021 | Mar. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | |
Credit Facilities (Details) [Line Items] | ||||
Letters of Credit Outstanding, Amount (in Dollars) | $ 17,200,000 | $ 17,200,000 | ||
JPMorgan ABL Credit Agreement [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | $ 67,500,000 | |||
Line of Credit, Current (in Dollars) | ||||
Letters of Credit Outstanding, Amount (in Dollars) | 41,400,000 | 41,400,000 | ||
Debt Issuance Costs, Gross (in Dollars) | $ 1,600,000 | 1,600,000 | ||
Amortization of Debt Issuance Costs (in Dollars) | $ 0.1 | $ 0.1 | ||
JPMorgan ABL Credit Agreement [Member] | Minimum [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Fixed Charge Coverage Ratio | 1.1 | |||
JPMorgan ABL Credit Agreement [Member] | Minimum [Member] | London Interbank Offered Rate LIBOR [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
JPMorgan ABL Credit Agreement [Member] | Minimum [Member] | Base Rate [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | 0.50% | ||
JPMorgan ABL Credit Agreement [Member] | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
JPMorgan ABL Credit Agreement [Member] | Maximum [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.375% | |||
Fixed Charge Coverage Ratio | 1 | |||
JPMorgan ABL Credit Agreement [Member] | Maximum [Member] | London Interbank Offered Rate LIBOR [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||
JPMorgan ABL Credit Agreement [Member] | Maximum [Member] | Base Rate [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1% | 1% | ||
JPMorgan ABL Credit Agreement [Member] | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2% | |||
Debt Instrument, Basis Spread on Variable Rate, Constant Spread Adjustment | 0.10% | |||
General Electric Capital Corporation Loan Agreement [Member] | ||||
Credit Facilities (Details) [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ (1,383) | $ 417 |
Effective Income Tax Rate Reconciliation, Percent | (20.60%) | 11.90% |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Loss Per Share (Details) [Line Items] | |||
Preferred Stock, Shares Outstanding | 200,000 | ||
Temporary Equity, Dividends, Adjustment (in Dollars) | [1] | $ 367 | $ 346 |
Convertible Debt Securities [Member] | |||
Loss Per Share (Details) [Line Items] | |||
Temporary Equity, Dividends, Adjustment (in Dollars) | $ 400 | $ 300 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 494,106 | 310,907 | |
[1]The 200,000 shares issued and outstanding are non-participating. |
Loss Per Share (Details) - Sche
Loss Per Share (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Schedule Of Earnings Per Share Basic And Diluted Abstract | |||
Net loss | $ (5,318) | $ (3,909) | |
Net loss attributable to non-controlling interests | (5) | (100) | |
Net loss attributable to JAKKS Pacific, Inc. | (5,313) | (3,809) | |
Preferred stock dividend * | [1] | 367 | 346 |
Net loss attributable to common stockholders ** | [2] | $ (5,680) | $ (4,155) |
Weighed average common shares outstanding - basic and diluted (in Shares) | 9,871,000 | 9,588,000 | |
Loss per share available to common stockholder - basic and diluted (in Dollars per share) | $ (0.58) | $ (0.43) | |
[1]The 200,000 shares issued and outstanding are non-participating.[2]Net loss attributable to common stockholders was computed by deducting preferred dividends of $0.4 million and $0.3 million for the three months ended March 31, 2023 and 2022, respectively. |
Common Stock and Preferred St_3
Common Stock and Preferred Stock (Details) | 3 Months Ended | ||||
Jul. 01, 2022 USD ($) shares | Aug. 09, 2019 $ / shares shares | Mar. 31, 2023 USD ($) $ / shares shares | Mar. 31, 2022 USD ($) shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Common Stock and Preferred Stock (Details) [Line Items] | |||||
At Market Issuance Sales Agreement, Offering, Maximum | $ 75,000,000 | ||||
Additional Securities Available (in Shares) | shares | 75,000,000 | ||||
Temporary Equity, Shares Issued (in Shares) | shares | 200,000 | 200,000 | 200,000 | ||
Temporary Equity, Par or Stated Value Per Share (in Dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||
Temporary Equity, Shares Outstanding (in Shares) | shares | 200,000 | 200,000 | |||
Temporary Equity, Initial Value Per Share (in Dollars per share) | $ / shares | $ 100 | ||||
Temporary Equity, Quarterly Dividend Rate | 6% | ||||
Mandatorily Redeemable Preferred Stock, Fair Value Disclosure | $ 24,900,000 | $ 24,500,000 | |||
Preferred Stock, Liquidation Preference, Value | 37,300,000 | 36,700,000 | |||
Minimum [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Temporary Equity, Liquidation Preference Percent Of Accreted Amount | 20% | ||||
Maximum [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Temporary Equity, Liquidation Preference Percent Of Accreted Amount | 150% | ||||
Redeemable Preferred Stock [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Dividends | 400,000 | $ 300,000 | |||
Dividends Payable | 4,900,000 | 4,500,000 | |||
Redeemable Preferred Stock [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value | 21,800,000 | $ 21,900,000 | |||
Executive Officer [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Number Of Executive Officers | 2 | ||||
Restricted Stock [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited (in Shares) | shares | 149,238 | ||||
Restricted Stock Award, Forfeitures | $ 41,000 | $ 2.2 | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Non-Option Equity Instruments, Forfeitures (in Shares) | shares | 2,206 | ||||
Restricted Stock [Member] | Executive Officer [Member] | |||||
Common Stock and Preferred Stock (Details) [Line Items] | |||||
Number Of Executive Officers | 2 | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Forfeited (in Shares) | shares | 69,358 | 113,162 | |||
Restricted Stock Award, Forfeitures | $ 1.2 | $ 1.4 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Oct. 31, 2016 | Nov. 30, 2014 | |
Joint Ventures (Details) [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | $ (5,000) | $ (100,000) | ||
Hong Kong Meisheng Cultural Co [Member] | ||||
Joint Ventures (Details) [Line Items] | ||||
Net Income (Loss) Attributable to Noncontrolling Interest | ||||
Joint Venture With Meisheng Cultural & Creative Corp. [Member] | ||||
Joint Ventures (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 51% | |||
Net Income (Loss) Attributable to Noncontrolling Interest | $ 5,000 | $ 100,000 | ||
Hong Kong Meisheng Cultural Co [Member] | ||||
Joint Ventures (Details) [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 50% |
Comprehensive Loss (Details) -
Comprehensive Loss (Details) - Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Comprehensive Loss Abstract | ||
Net loss | $ (5,318) | $ (3,909) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 332 | (662) |
Comprehensive loss | (4,986) | (4,571) |
Less: Comprehensive loss attributable to non-controlling interests | (5) | (100) |
Comprehensive loss attributable to JAKKS Pacific, Inc. | $ (4,981) | $ (4,471) |
Share-Based Payments (Details)
Share-Based Payments (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restricted Stock [Member] | Minimum [Member] | |
Share-Based Payments (Details) [Line Items] | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 1 year |
Restricted Stock [Member] | Maximum [Member] | |
Share-Based Payments (Details) [Line Items] | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Vesting Period | 4 years |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Payments (Details) [Line Items] | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount (in Dollars) | $ 17.4 |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 6 months |
Share-Based Payments (Details)
Share-Based Payments (Details) - Share-based Payment Arrangement, Expensed and Capitalized, Amount - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Abstract] | ||
Share-based compensation expense | $ 2,089 | $ 870 |
Share-Based Payments (Details_2
Share-Based Payments (Details) - Schedule of Nonvested Restricted Stock Units Activity - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-Based Payments (Details) - Schedule of Nonvested Restricted Stock Units Activity [Line Items] | |
Outstanding, Number of Shares | shares | 1,408,586 |
Outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 12.82 |
Awarded, Number of Shares | shares | 278,081 |
Awarded, Weighted Average Grant Date Fair Value | $ / shares | $ 17.49 |
Vested, Number of Shares | shares | (191,423) |
Vested, Weighted Average Grant Date Fair Value | $ / shares | $ 8.44 |
Outstanding, Number of Shares | shares | 1,495,244 |
Outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 14.25 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis - Reported Value Measurement [Member] - Redeemable Preferred Stock [Member] - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liability | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Derivative liability | $ 21,771 | $ 21,918 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation - Fair Value, Inputs, Level 3 [Member] - 3.25% Convertible Senior Notes Due 2023 [Member] - Fair Value, Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance | $ 21,918 | $ 21,282 |
Change in fair value | (147) | 645 |
Balance | $ 21,771 | $ 21,927 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Measurement Input Change-in-control Probability [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Fair Value (in Dollars) | $ 21,771 | $ 21,918 | |
Valuation Technique | Discounted Cash Flow | Discounted Cash Flow | |
Unobservable Inputs | Change-in-control probability assumptions | Change-in-control probability assumptions | |
Range (Weighted Average) | (27.2) | (27.3) | |
Measurement Input Timing Of Change-in-control Assumptions [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Unobservable Inputs | Timing of change-in-control assumptions | Timing of change-in-control assumptions | |
Range (Weighted Average) | 4.16 | 4.19 | |
Measurement Input, Discount Rate [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Unobservable Inputs | Discount Rate | Discount Rate | |
Range (Weighted Average) | (18.59) | (17.7) | |
Measurement Input, Expected Dividend Rate [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Unobservable Inputs | [1] | Implied yield* | Implied yield* |
Minimum [Member] | Measurement Input Change-in-control Probability [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | 10 | 10 | |
Minimum [Member] | Measurement Input Timing Of Change-in-control Assumptions [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | 1 | 1 | |
Minimum [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | 18.16 | 17.48 | |
Maximum [Member] | Measurement Input Change-in-control Probability [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | 40 | 40 | |
Maximum [Member] | Measurement Input Timing Of Change-in-control Assumptions [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | 10 | 10 | |
Maximum [Member] | Measurement Input, Discount Rate [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | 18.91 | 18.23 | |
Maximum [Member] | Measurement Input, Expected Dividend Rate [Member] | |||
Fair Value Measurements (Details) - Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Line Items] | |||
Range (Weighted Average) | [1] | 11.41 | 11.23 |
[1]Represents the implied yield of the 2021 BSP Term Loan |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 02, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Related Party Transactions (Details) [Line Items] | ||||
Due To Related Parties Current And Noncurrent | $ 8,024 | $ 9,820 | ||
Initial Term Loan [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Proceeds from Issuance of Long-Term Debt | $ 96,300 | |||
Secured Debt [Member] | Initial Term Loan [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Proceeds from Issuance of Long-Term Debt | $ 30,200 | |||
Director [Member] | Series A Preferred Stock [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Investment Owned, Balance, Shares (in Shares) | 145,788 | |||
Inventory Related Payments [Member] | Hong Kong Meisheng Cultural Company Limited [Member] | ||||
Related Party Transactions (Details) [Line Items] | ||||
Related Party Transaction, Amounts of Transaction | $ 9,300 | $ 15,500 | ||
Due To Related Parties Current And Noncurrent | $ 8,000 | $ 9,800 |
Prepaid Expense and Other Ass_3
Prepaid Expense and Other Assets (Details) - Deferred Costs, Capitalized, Prepaid, and Other Assets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Deferred Costs Capitalized Prepaid And Other Assets Abstract | ||
Royalty advances | $ 5,767 | $ 1,822 |
Prepaid expenses | 4,482 | 994 |
Income tax receivable | 2,220 | 2,217 |
Employee retention credit | 265 | 1,179 |
Other assets | 115 | 119 |
Prepaid expenses and other assets | $ 12,849 | $ 6,331 |