Purple Innovation (PRPL) 10-Q 11 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 08, 2020
Entity Registrant Name	Purple Innovation, Inc.
Entity Central Index Key	0001643953
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Ex Transition Period	false
Entity Emerging Growth Company	true
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-37523
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Class A Common Stock
Entity Common Stock, Shares Outstanding		23,622,214
Class B Common Stock
Entity Common Stock, Shares Outstanding		30,270,245

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 26,378	$ 33,478
Accounts receivable, net	23,270	28,692
Inventories, net	42,112	47,628
Prepaid inventory	1,033	879
Other current assets	5,687	3,442
Total current assets	98,480	114,119
Property and equipment, net	36,092	31,979
Intangible assets, net	2,813	1,101
Other long-term assets	525	525
Total assets	137,910	147,724
Current liabilities:
Accounts payable	37,163	50,240
Accrued sales returns	6,737	7,271
Accrued compensation	7,153	7,954
Customer prepayments	3,538	6,258
Accrued sales tax	4,351	5,602
Other current liabilities	9,258	9,540
Total current liabilities	68,200	86,865
Long-term debt, related-party	36,774	35,399
Warrant liabilities	7,989	21,622
Other long-term liabilities, net of current portion	9,833	8,570
Total liabilities	122,796	152,456
Commitments and contingencies (Note 11)
Stockholders' equity (deficit):
Class A common stock; $0.0001 par value, 210,000 shares authorized; 23,622 issued and outstanding at March 31, 2020 and 22,494 issued and outstanding at December 31, 2019	2	2
Class B common stock; $0.0001 par value, 90,000 shares authorized; 30,270 issued and outstanding at March 31, 2020 and 31,394 issued and outstanding at December 31, 2019	3	3
Additional paid-in capital	5,955	5,990
Accumulated earnings (deficit)	486	(8,349)
Total stockholders' equity (deficit)	6,446	(2,354)
Noncontrolling interest	8,668	(2,378)
Total equity (deficit)	15,114	(4,732)
Total liabilities and stockholders' equity (deficit)	$ 137,910	$ 147,724

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Mar. 31, 2020	Dec. 31, 2019
Class A Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	210,000	210,000
Common stock, shares issued	23,622	22,494
Common stock, shares outstanding	23,622	22,494
Class B Common Stock
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	90,000	90,000
Common stock, shares issued	30,270	31,394
Common stock, shares outstanding	30,270	31,394

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenues, net	$ 122,375	$ 83,648
Cost of revenues	69,193	49,579
Gross profit	53,182	34,069
Operating expenses:
Marketing and sales	36,684	24,017
General and administrative	7,548	4,565
Research and development	1,445	690
Total operating expenses	45,677	29,272
Operating income	7,505	4,797
Other income (expense):
Interest expense	(1,389)	(1,144)
Other income (expense), net	(32)	229
Loss on extinguishment of debt		(6,299)
Change in fair value - warrant liabilities	13,633	1,697
Total other income (expense), net	12,212	(5,517)
Net income (loss) before income taxes	19,717	(720)
Income tax benefit	284
Net income (loss)	20,001	(720)
Net income (loss) attributable to noncontrolling interest	11,166	(590)
Net income (loss) attributable to Purple Innovation, Inc.	$ 8,835	$ (130)
Net income (loss) per share:
Basic	$ 0.39	$ (0.02)
Diluted	$ 0.11	$ (0.02)
Weighted average common shares outstanding:
Basic	22,675	8,437
Diluted	25,327	8,437

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit)/Member Deficit (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Class A Common Stock	Class B Common Stock	Additional Paid-in Capital	Accumulated Equity (Deficit)	Total Stockholders' Equity (Deficit)	Noncontrolling Interest	Total
Balance at Dec. 31, 2018	$ 1	$ 4	$ 3,655	$ (4,322)	$ (662)	$ (1,349)	$ (2,011)
Balance, shares at Dec. 31, 2018	9,731	44,071
Net income/loss				(130)	(130)	(590)	(720)
Stock-based compensation			73		73		73
Accrued distributions
Balance at Mar. 31, 2019	$ 1	$ 4	3,728	(4,452)	(719)	(1,939)	(2,658)
Balance, shares at Mar. 31, 2019	9,731	44,071
Balance at Dec. 31, 2019			5,990	(8,349)	(2,354)	(2,378)	(4,732)
Balance, shares at Dec. 31, 2019	22,494	31,394
Net income/loss				8,835	8,835	11,166	20,001
Stock-based compensation			250		250		250
Stock-based compensation, shares	3
Exchange of stock
Exchange of stock, shares	1,124	(1,124)
Exercise of warrants			12		12		12
Exercise of warrants, shares	1
Tax Receivable Agreement liability			(221)		(221)		(221)
Accrued distributions			(196)		(196)		(196)
Impact of transactions affecting NCI			120		120	(120)
Balance at Mar. 31, 2020			$ 5,955	$ 486	$ 6,446	$ 8,668	$ 15,114
Balance, shares at Mar. 31, 2020	23,622	30,270

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ 20,001	$ (720)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	1,778	722
Non-cash interest	1,375	732
Loss on extinguishment of debt		6,299
Gain on change in fair value - warrant liabilities	(13,633)	(1,697)
Tax receivable agreement expense	122
Stock-based compensation	250	73
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable	5,422	(9,448)
Decrease (increase) in inventories	5,516	(2,401)
Increase in prepaid inventory and other assets	(2,399)	(683)
Increase (decrease) in accounts payable	(13,217)	1,179
Decrease in accrued sales returns	(534)	(268)
Increase (decrease) in accrued compensation	(801)	463
Decrease in customer prepayments	(2,720)	(3,187)
Increase (decrease) in other accrued liabilities	(1,421)	646
Net cash used in operating activities	(261)	(8,290)
Cash flows from investing activities:
Purchase of property and equipment	(4,520)	(932)
Investment in intangible assets	(2,328)	(64)
Net cash used in investing activities	(6,848)	(996)
Cash flows from financing activities:
Proceeds from related-party debt		10,000
Proceeds from exercise of warrants	12
Payments for debt issuance costs		(758)
Principal payments on capital lease obligations	(3)	(6)
Net cash provided by financing activities	9	9,236
Net decrease in cash	(7,100)	(50)
Cash, beginning of the period	33,478	12,232
Cash, end of the period	26,378	12,182
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	14
Cash paid during the period for income taxes	63
Supplemental schedule of non-cash investing and financing activities:
Property and equipment included in accounts payable	883	438
Non-cash leasehold improvements	615
Accrued distributions	196
Tax Receivable Agreement liability	$ 221

Organization

Organization	3 Months Ended
	Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization The Company's mission is to help people feel and live better through innovative comfort solutions. Purple Innovation, Inc., collectively with its subsidiary (the "Company" or "Purple Inc.") is a digitally-native vertical brand founded on comfort product innovation with premium offerings. The Company designs and manufactures a variety of innovative, branded and premium comfort products, including mattresses, pillows, cushions, bases, sheets, and other products. The Company markets and sells its products through its direct-to-consumer ("DTC") online channels, retail brick-and-mortar wholesale partners, third-party online retailers and its Company showrooms. The Company was incorporated in Delaware on May 19, 2015 as a special purpose acquisition company under the name of Global Partnership Acquisition Corp ("GPAC") for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving the Company and one or more businesses. On February 2, 2018, the Company consummated a transaction structured similar to a reverse recapitalization (the "Business Combination") pursuant to which the Company acquired a portion of the equity of Purple Innovation, LLC ("Purple LLC"). At the closing of the Business Combination (the "Closing"), the Company became the sole managing member of Purple LLC, and GPAC was renamed Purple Innovation, Inc. As the sole managing member of Purple LLC, Purple Inc. through its officers and directors is responsible for all operational and administrative decision making and control of the day-to-day business affairs of Purple LLC without the approval of any other member, unless specified in the amended operating agreement.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company consists of Purple Inc. and its consolidated subsidiary Purple LLC. Pursuant to the Business Combination described in Note 3— Business Combination The Business Combination was structured similar to a reverse recapitalization. The historical operations of Purple LLC are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Purple LLC prior to the Business Combination; (ii) the combined results of the Company following the Business Combination; (iii) the assets and liabilities of Purple LLC at their historical cost; and (iv) the Company's equity and earnings per share for all periods presented. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting and reflect the financial position, results of operations and cash flows of the Company. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in the Company's Annual Report on Form 10-K filed March 9, 2020. The unaudited condensed consolidated financial statements were prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments (all of which were considered of normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three months ended March 30, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or for any other interim period or other future year. COVID-19 Pandemic Developments The COVID-19 pandemic has recently had adverse impacts on many aspects of our operation, directly and indirectly, including our employees, consumer behavior, distribution and logistics, our suppliers, and the market overall. The scope and nature of these impacts continue to evolve each day. In light of the uncertain and rapidly evolving situation relating to the COVID-19 pandemic, we have taken a number of precautionary measures to manage our resources and mitigate the adverse impact of the pandemic, which is intended to help minimize the risk to our Company, employees, customers, and the communities in which we operate. Employees at the Company's headquarters and certain other employees have been asked to work from home where possible. For roles that require employees to be on-site, such as our manufacturing facility and distribution center, we are providing protective equipment, practicing social distancing and increasing sanitizing standards. We have experienced a sharp decline in the wholesale side of our business as temporary shutdowns of non-essential businesses and shelter-at-home directives have occurred in most U.S. states. Also, we have temporarily closed our three showrooms in California in compliance with locally mandated shelter-in-place requirements. We continue to serve customers through our Direct to Consumer ("DTC") channel, and during the first quarter of 2020, some consumer demand for our premium, differentiated product offering shifted to our DTC channel. In response, we have refocused our efforts back to our DTC core competencies resulting in an acceleration in DTC channel sales across all of our product categories in the last half of March. This increase in online demand has produced online growth of 50% over the prior year first quarter, partially offsetting declines from our 2020 forecast in our wholesale channel. There can be no assurance that this trend of increased demand through our DTC channel will continue. This increase in DTC demand allowed us to work through a portion of our on-hand inventory. Given the difficultly in predicting how long this pandemic will persist and its full impact, we continue to look at all opportunities to preserve liquidity. This included taking advantage of our vertically integrated business model to adjust production schedules to leverage inventory on hand and tightly manage labor costs, including temporarily furloughing roughly 35% of our permanent workforce. We also continue to dynamically adjust our significant discretionary online advertising spend in response to any changes in DTC trends as they develop. The Company has temporarily deferred 25% of the cash compensation of Senior Executives and all the cash compensation of the Board of Directors. In addition, in March 2020 we entered into an amendment to our Amended and Restated Credit Agreement to allow the Company to defer 5% of the interest for quarterly payments due during the first two quarters of 2020. In addition, we are temporarily reducing our capital spend by delaying all non-maintenance related projects and investments in non-essential initiatives and headcount additions until we have better visibility into when conditions normalize. Other proactive steps have been taken to carefully manage cash in response to the rapidly changing circumstances. We anticipate being able to start paying deferred compensation and moving forward with capital spend on certain growth initiatives during the second quarter. The Company intends to proceed cautiously and continue to take proactive steps to manage cash and respond quickly and prudently to new COVID-19 related circumstances. Our supply chain has not as yet been significantly affected by COVID-19. Currently, our domestic suppliers are able to continue operations and provide necessary materials when needed. Suppliers in China were temporarily closed as a result of the pandemic but we had sufficient inventory on hand. Many of our suppliers resumed production in March and are able to supply materials as needed. As a result, we don't expect supply to have a material impact on our ability to meet anticipated demand. Although each of the remedial measures was taken by the Company to protect the business and preserve liquidity, each may also have the potential to have a material adverse impact on our current business, financial condition and results of operations, and may create additional risks for our Company. While we anticipate that the foregoing measures are temporary, we cannot predict the specific duration for which these precautionary measures will stay in effect, and we may elect or need to take additional measures as the information available to us continues to develop, including with respect to our employees, manufacturing facility and distribution center, and relationships with our suppliers and customers. Subject to certain assumptions regarding the duration and severity of the COVID-19 pandemic, and government, consumer, and our responses thereto, based on our current projections we believe our cash on hand, ongoing cash generated from e-commerce and eventual resumption and ramp up of store operations and our wholesale business, will be sufficient to cover our working capital requirements and anticipated capital expenditures for the next 12 months. However, the extent to which the COVID-19 pandemic and our precautionary measures in response thereto may impact our business will depend on future developments, which are highly uncertain and cannot be precisely predicted at this time. Variable Interest Entities Purple LLC is a variable interest entity ("VIE"). The Company determined that it is the primary beneficiary of Purple LLC as it is the sole managing member and has the power to direct the activities most significant to Purple LLC's economic performance as well as the obligation to absorb losses and receive benefits that are potentially significant. At March 31, 2020, Purple Inc. had approximately a 44% economic interest in Purple LLC and consolidated 100% of Purple LLC's assets, liabilities and results of operations in the Company's unaudited condensed consolidated financial statements contained herein. At March 31, 2020, InnoHold and other parties owned approximately 56% of the economic interest in Purple LLC; however, InnoHold and other parties have disproportionally fewer voting rights, and are shown as the noncontrolling interest ("NCI") holder of Purple LLC. For further discussion see Note 13 — Stockholders' Equity. Use of Estimates The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company regularly makes significant estimates and assumptions including, but not limited to, estimates that affect the Company's revenue recognition, accounts receivable and allowance for doubtful accounts, valuation of inventories, cost of revenues, sales returns, warranty returns, the recognition and measurement of loss contingencies, warrant liabilities, estimates of current and deferred income taxes, deferred income tax valuation allowances and amounts associated with the Company's Tax Receivable Agreement with InnoHold (the "Tax Receivable Agreement"). Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from those estimates. Revenue Recognition In May 2014, in addition to several amendments issued during 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The Company adopted this ASU effective January 1, 2019 on a modified retrospective basis. Adoption of this standard did not result in significant changes to the Company's accounting policies, business processes, systems or controls, or have a material impact on the Company's financial position, results of operations, or cash flows. As such, the Company did not record a cumulative adjustment to the opening equity balance of accumulated deficit as of January 1, 2019. However, additional disclosures have been added in accordance with the requirements of Topic 606 and are reflected in Note 4 – Revenue from Contracts with Customers. The Company markets and sells its products through direct-to-consumer online channels, traditional wholesale partners, third-party online retailers, the Company factory outlet store and Company showrooms. Revenue is recognized when the Company satisfies its performance obligations under the contract which is transferring the promised products to the customer. This principle is achieved in the following steps: Identify the contract with the customer. Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to performance obligations in the contract. Recognize revenue when or as we satisfy a performance obligation. Debt Issuance Costs and Discounts Debt issuance costs and discounts are presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and are amortized into interest expense using an effective interest rate over the duration of the debt. Refer to Note 8 – Long-Term Debt, Related-Party Liability Warrants The Company accounts for liability warrants under the provisions of ASC 480 - Distinguishing Liabilities from Equity Warrant Liabilities Fair Value Measurements The Company uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. 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, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1—Quoted market prices in active markets for identical assets or liabilities; Level 2—Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and Level 3—Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. The classification of fair value measurements within the established three-level hierarchy is based upon the lowest level of input that is significant to the measurements. Financial instruments, although not recorded at fair value on a recurring basis include cash and cash equivalents, receivables, accounts payable, accrued expenses and the Company's debt obligations. The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value because of the short-term nature of these accounts. The fair value of the Company's debt instrument is estimated to be its face value based on the contractual terms of the debt instrument and market-based expectations. The warrant liability is a Level 3 instrument and uses an internal model to estimate fair value using certain significant unobservable inputs which requires determination of relevant inputs and assumptions. Accordingly, changes in these unobservable inputs may have a significant impact on fair value. Such inputs include risk free interest rate, expected average life, expected dividend yield, and expected volatility. These Level 3 liabilities would decrease (increase) in value based upon an increase (decrease) in risk free interest rate and expected dividend yield. Conversely, the fair value of these Level 3 liabilities would generally increase (decrease) in value if the expected average life or expected volatility were to increase (decrease). Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that the deferred tax assets will be realized. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. Our effective tax rate is primarily impacted by the allocation of income taxes to the noncontrolling interest and changes in our valuation allowance. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return, which are subject to examination by federal and state taxing authorities. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. The Company recognizes penalties and interest related to uncertain tax positions within the provision (benefit) for income taxes line in the accompanying consolidated statements of operations. The Company files U.S. federal and certain state income tax returns. The income tax returns of the Company are subject to examination by U.S. federal and state taxing authorities for various time periods, depending on those jurisdictions' rules, generally after the income tax returns are filed. Net Income (Loss) Per Share The two-class method of computing net income (loss) per share is required for entities that have participating securities. The two-class method is an earnings allocation formula that determines net income (loss) per share for participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company's Class B Stock has no economic interest in the earnings of the Company, resulting in the two-class method not being applicable as of March 31, 2020 or in prior periods. Basic net income (loss) per common share is calculated by dividing net loss attributable to common shareholders by the weighted average number of shares of Class A Stock outstanding each period. Diluted net income (loss) per share adds to those shares the incremental shares that would have been outstanding and potentially dilutive assuming exchanges of the Company's outstanding warrants, stock options and Class B Stock for Class A Stock, and the vesting of unvested and restricted Class A Stock. An anti-dilutive impact is an increase in net income per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities. The Company uses the "if-converted" method to determine the potential dilutive effect of conversions of its outstanding Class B Stock, and the treasury stock method to determine the potential dilutive effect of its outstanding warrants and stock options exercisable for shares of Class A Stock and the vesting of unvested and restricted Class A Stock. Recent Accounting Pronouncements New Lease Guidance In February 2016, the FASB issued ASU No. 2016-02, "Leases," and in March 2019, the FASB issued ASU No. 2019-01, "Leases: Codification Improvements", which updated the accounting guidance related to leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. They also clarify implementation issues. These updates are effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. The Company is allowed to use the private company adoption timelines, and therefore the standard is effective for the Company for its annual period beginning January 1, 2020, and interim periods within annual periods beginning January 1, 2021. The standard is to be applied utilizing a modified retrospective approach, with early adoption permitted. We are in the process of implementing a new lease accounting system in connection with the adoption. While we expect a material impact to our consolidated balance sheet as a result of the adoption of this new guidance, we continue to evaluate the effect of the new standard on our consolidated financial statements and related disclosures. We also expect that adoption of the new guidance will require changes to our internal controls over financial reporting. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12. New Internal-Use Software Guidance In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350) ("ASU 2018-15"). The objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those incurred to develop or obtain internal-use software. The guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The amendments can be applied either retrospectively or prospectively. We do not expect the adoption of this standard to have a material impact on its consolidated financial statements.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2020
Business Combination [Abstract]
Business Combination	3. Business Combination On February 2, 2018, upon consummation of the Business Combination, Purple LLC merged with and into a wholly owned subsidiary of GPAC (PRPL Acquisition, LLC), with Purple LLC being the survivor in that merger pursuant to an Agreement and Plan of Merger (the "Merger Agreement"), by and among GPAC, PRPL Acquisition, LLC, a Delaware limited liability company and a wholly owned subsidiary of GPAC ("Merger Sub"), Purple LLC and InnoHold. In connection with the Closing, GPAC was renamed "Purple Innovation, Inc." and its articles of incorporation were amended to rename its common stock to Class A common stock ("Class A Stock") and created a new class of stock named Class B common stock ("Class B Stock") of which 44.1 million shares of Class B Stock were issued to InnoHold (refer to Note 13 — Stockholders' Equity Additionally, at the Closing, 9.7 million Class A Units of Purple LLC were issued and are solely held by Purple Inc. They are voting common units entitled to share in the profits and losses of Purple LLC and receive distributions as declared by Purple LLC's manager. 44.1 million Class B Units of Purple LLC were issued to InnoHold who has limited voting rights in Purple LLC and is entitled to share in the profits and losses of Purple LLC and to receive distributions as declared by Purple LLC's manager. The amended operating agreement appoints Purple Inc. as the sole managing member of Purple LLC. As the sole managing member, Purple Inc. operates and controls all of the business and affairs of Purple LLC. Accordingly, although Purple Inc. has a minority economic interest in Purple LLC, Purple Inc. has the sole voting interest in and control of the management and operations of Purple LLC.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	4. Revenue from Contracts with Customers The Company markets and sells its products through direct-to-consumer online channels, traditional wholesale partners, third-party online retailers and Company showrooms. Revenue is recognized when the Company satisfies its performance obligations under the contract which is transferring the promised products to the customer as described in Note 2 – Summary of Significant Accounting Policies Contract Balances Payment for sale of products through the direct-to-consumer online channels, third-party online retailers and Company showrooms is collected at point of sale in advance of shipping the products. Amounts received for unshipped products are recorded as customer prepayments. Customer prepayments were $3.5 million at March 31, 2020 and $6.3 million at December 31, 2019. During the three months ended March 31, 2020, the Company recognized $6.3 million of revenue that was deferred in customer prepayments at December 31, 2019. Disaggregated Revenue The following table presents the Company's revenue disaggregated by sales channel and product (in thousands): Three Months Ended Channel 2020 2019 Direct-to-consumer $ 80,687 $ 53,764 Wholesale partner 41,688 29,884 Revenues, net $ 122,375 $ 83,648 Three Months Ended Product 2020 2019 Bedding $ 114,501 $ 81,335 Other 7,874 2,313 Revenues, net $ 122,375 $ 83,648 The Company sells products through two channels: Direct-to-Consumer and Wholesale. The Direct-to-Consumer channel includes product sales through various direct-to-consumer channels including Company showrooms. The Wholesale channel includes all product sales to traditional third-party retailers for their in store and online channels. The Company classifies products into two major categories: Bedding and Other. Bedding products include mattresses, platforms, adjustable bases, mattress protectors, pillows and sheets. Other products include cushions and various other products.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	5. Inventories Inventories consist of the following (in thousands): March 31, December 31, 2020 2019 Raw materials $ 18,939 $ 16,220 Work-in-process 1,610 2,713 Finished goods 22,455 29,485 Inventory obsolescence reserve (892 ) (790 ) Inventories, net $ 42,112 $ 47,628

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	6. Property and Equipment Property and equipment consist of the following (in thousands): March 31, December 31, 2020 2019 Equipment $ 20,809 $ 19,761 Equipment in progress 8,152 5,278 Leasehold improvements 7,662 7,040 Furniture and fixtures 4,653 4,252 Office equipment 1,853 1,523 Equipment under capital lease 662 662 Total property and equipment 43,791 38,516 Accumulated depreciation and amortization (7,699 ) (6,537 ) Property and equipment, net $ 36,092 $ 31,979 The Company recorded depreciation and amortization related to property and equipment of $1.2 million and $0.7 million during the three months ended March 31, 2020 and 2019, respectively.

Other Current Liabilities

Other Current Liabilities	3 Months Ended
	Mar. 31, 2020
Other Liabilities Disclosure [Abstract]
Other Current Liabilities	7. Other Current Liabilities Other current liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Co-op advertising, rebates, promotions $ 3,139 $ 5,311 Warranty accrual – current portion 2,419 1,567 Website commissions 1,072 897 Tax Receivable Agreement liability 845 501 Insurance financing 830 350 All other current liabilities 953 914 Total other current liabilities $ 9,258 $ 9,540

Long-Term Debt, Related-Party

Long-Term Debt, Related-Party	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Long-Term Debt, Related-Party	8. Long-Term Debt, Related-Party Long-term debt, related-party consists of the following (in thousands): March 31, December 31, 2020 2019 Long-term debt, related-party $ 40,391 $ 39,202 Less: unamortized debt issuance costs and discounts (3,617 ) (3,803 ) Total long-term debt, related-party $ 36,774 $ 35,399 Credit Agreement On February 2, 2018, Purple LLC entered into a Credit Agreement (the "Credit Agreement") with Coliseum Capital Partners, L.P. ("CCP"), Blackwell Partners LLC – Series A ("Blackwell") and Coliseum Co-invest Debt Fund, L.P. ("CDF" and together with CCP and Blackwell, the "Lenders"), pursuant to which the Lenders agreed to make a loan in an aggregate principal amount of $25.0 million. The Credit Agreement was closed and funded in connection with the Closing on February 2, 2018. In conjunction with the Credit Agreement, Global Partner Sponsor I LLC (the "Sponsor") agreed to assign to the Lenders an aggregate of 2.5 million warrants to purchase 1.3 million shares of its Class A Stock. The Credit Agreement was amended and restated on January 28, 2019 as discussed below. Amended and Restated Credit Agreement On January 28, 2019, Purple LLC entered into a First Amendment to the Credit Agreement (the "First Amendment") with the Lenders. In the First Amendment, Purple LLC agreed to enter into the Amended and Restated Credit Agreement, under which two of the Lenders ("Incremental Lenders") agreed to provide an incremental loan of $10.0 million such that the total amount of principal indebtedness provided to Purple LLC is increased to $35.0 million. A stockholder meeting was held on February 25, 2019 at which time a majority of non-interested stockholders voted in favor of this transaction. The Amended and Restated Credit Agreement, and each of the related documents, was accordingly closed, and the incremental $10.0 million loan was funded on February 26, 2019, and the Company issued to the Incremental Lenders 2.6 million warrants to purchase 2.6 million shares of the Company's Class A Stock at a price of $5.74 per share, subject to certain adjustments. Among other things, the terms of the Amended and Restated Credit Agreement extends the maturity date for all loans under the Credit Agreement to five years from closing of the incremental loan, lowers the amount allowed for an asset-based loan to $10.0 million, revises certain restrictive covenants to make them more applicable to the Company's current business, provides the ability for the Company to request additional loans from the Lenders not to exceed $10 million and other closing conditions, representations, warranties and covenants customary for a transaction of this type. All indebtedness under the Amended and Restated Credit Agreement bears interest at 12.0% per annum and is payable on the last business day of each fiscal quarter, provided that Purple LLC will be required to pay up to an additional 4.0% of interest per annum if it fails to meet certain EBITDA thresholds and an additional 2.0% of interest per annum if the Company is not in material compliance with the Sarbanes-Oxley Act of 2002. In addition, Purple LLC may elect for interest in excess of 5.0% per annum to be capitalized and added to the principal amount. Any principal pre-payments in the first year are subject to a make-whole payment, while principal pre-payments in years two through four are subject to certain pre-payment penalties. The Amended and Restated Credit Agreement provided for certain remedies to the Lenders in the event of customary events of default and provides for standard indemnification of the Lenders. Purple LLC continues to be restricted from making annual capital expenditures in excess of $20.0 million and incurring capital lease obligations in excess of $10.0 million at any time outstanding, subject to limited exceptions. As of March 31, 2020, the Company was in compliance with all of the covenants in the Amended and Restated Credit Agreement. In conjunction with the incremental loan under the Amended and Restated Credit Agreement, the Company paid fees and debt issuance costs in the amount of $0.5 million and $0.3 million, respectively. Additionally, the $4.9 million fair value of the 2.6 million warrants at the time of issuance was included as a component of the loss on extinguishment of debt. On March 27, 2020 the Company entered into the First Amendment to the Amended and Restated Credit Agreement with the Lenders. The purpose of this Amendment is to allow the Company to defer the remaining 5% of interest for the quarterly payments due March 31 and June 30, 2020 in an effort to reduce its cash disbursements during the COVID-19 impact. Pursuant to the Amendment, the Company is allowed to defer and capitalize the full amount of the interest payments due on March 31, 2020 and June 30, 2020. The Company accounted for the amendment as a modification of existing debt in accordance with ASC 470 - Debt Interest expense related to the Amended and Restated Credit Agreement was $1.2 million and $1.0 million for the three months ended March 31, 2020 and 2019, respectively. Of the interest expense incurred for the three months ended March 31, 2020, all $1.2 million was paid-in-kind through additions to the principal amount. Of the interest expense incurred for the three months ended March 31, 2019, $0.6 million was paid-in-kind through additions to the principal amount and $0.4 million was paid in cash. Loss on Extinguishment of Debt In 2019, the Company accounted for the debt restructuring under the Amended and Restated Credit Agreement in accordance with ASC 470 - Debt

Warrant Liabilities

Warrant Liabilities	3 Months Ended
	Mar. 31, 2020
Warrant Liabilities [Abstract]
Warrant Liabilities	9. Warrant Liabilities The Incremental Loan Warrants issued in conjunction with the Amended and Restated Credit Agreement contain a warrant repurchase provision which, upon an occurrence of a fundamental transaction, as defined in the warrant agreement, could give rise to an obligation of the Company to pay cash to the warrant holders. In addition, upon the occurrence of any of the following events: (1) a fundamental transaction; (2) acquisition of 25% or more of the total voting power of all the securities of the entity by any one person or group of affiliated persons or entities; (3) Tony Pearce or Terry Pearce individually or together ceasing to beneficially own at least 50% of the voting securities of the Company; or (4) the Board of Directors ceasing to be comprised of a majority of independent directors as defined under NASDAQ rules, the exercise price of the warrant will be reduced by a value based upon a formula model established in the agreement. The formula model is a Black Scholes valuation model which would use the following inputs: (1) share price would be the greater of the volume weighted average price ("VWAP") of the common stock for the prior 30 days before the applicable event date or the VWAP of the trading day immediately preceding the event date; (2) exercise price of $5.74, unless previously adjusted under other terms of the warrant; (3) volatility would be the greater of 100% and the historical volatility of the Company's common stock for the ninety days preceding the date of the triggering event; and (4) the assumed risk-free interest rate shall correspond to the US Treasury rate for a period equal to the remaining term of this warrant. The Company has determined that the fundamental transaction provisions require the warrants to be accounted for as a liability at fair value on the date of the transaction under guidance prescribed in ASC 480 - Distinguishing Liabilities from Equity The Company determined the fair value of the Incremental Loan Warrants to be $8.0 million and $21.6 million on March 31, 2020 and December 31, 2019, respectively using a Monte Carlo Simulation of a Geometric Brownian Motion stock path model with the following assumptions: March 31, December 31, 2020 2019 Trading price of common stock on measurement date $ 5.68 $ 8.71 Exercise price $ 5.74 $ 5.74 Risk free interest rate 0.37 % 1.69 % Warrant life in years 3.9 4.2 Expected volatility 44.16 % 36.82 % Expected dividend yield — — Probability of an event causing a warrant re-price 50.00 % 95.00 % The Company recorded a $13.6 million gain on the decrease in fair value of the Incremental Loan Warrants for the three months ended March 31, 2020.

Other Long-Term Liabilities

Other Long-Term Liabilities	3 Months Ended
	Mar. 31, 2020
Other Long-Term Liabilities [Abstract]
Other Long-Term Liabilities	10. Other Long-Term Liabilities Other long-term liabilities consist of the following (in thousands): March 31, December 31, 2020 2019 Deferred rent expense $ 5,954 $ 5,115 Warranty accrual 6,104 4,621 Capital leases 485 488 Total other long-term liabilities 12,543 10,224 Less: current portion of long-term liabilities (2,710 ) (1,654 ) Other long-term liabilities, net of current portion $ 9,833 $ 8,570

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Required Member Distributions Prior to the Business Combination and pursuant to the then applicable First Amended and Restated Limited Liability Company Agreement (the "First Purple LLC Agreement"), Purple LLC was required to distribute to InnoHold an amount equal to 45 percent of Purple LLC's net taxable income following the end of each fiscal year. The First Purple LLC Agreement was amended and replaced by the Second Amended and Restated Limited Liability Company Agreement (the "Second Purple LLC Agreement") on February 2, 2018 as part of the Business Combination. The Second Purple LLC Agreement does not include any mandatory distributions, other than tax distributions. No distributions have been made under the Second Purple LLC Agreement in 2019. As of March 31, 2020, the Company has recorded an accrued distributions liability in the amount of $0.3 million, which is anticipated to be distributed in July 2020. Service Agreement In October 2017, the Company entered into an electric service agreement with the local power company. The agreement provided for the construction and installation of certain utility improvements to provide increased power capacity to the manufacturing and warehouse facility in Grantsville, Utah. The Company prepaid $0.5 million related to the improvements and agreed to a minimum contract billing amount over a 15-year period based on regulated rate schedules and changes in actual demand during the billing period. The agreement includes an early termination clause that requires the Company to pay a pro-rata termination charge if the Company terminates within the first 10 years of the service start date. The original early termination charge was $1.3 million and is reduced annually on a straight-line basis over the 10-year period. During 2018, the utility improvements construction was completed and were made available to the Company. As of March 31, 2020, the early termination penalty was $1.0 million and the Company expects to fulfill its commitments under the agreement in the normal course of business, and as such, no liability has been recorded. Operating Leases The Company leases various office and warehouse facilities under non-cancellable operating leases. Office and manufacturing space for its facility in Alpine, Utah is leased from TNT Holdings an entity that prior to the Business Combination was under common control with InnoHold, which was the majority and controlling owner of Purple LLC. The lease was originally entered into in 2010, but in October 2017 was amended with a lease term of 10 years that expires in September 2027 with an early-out clause without penalties after 5 years and includes an option for a 5-year extension. The Company leases a facility located in Grantsville, Utah for use primarily as manufacturing and warehouse space. The lease was entered into in August 2016 with a lease term of 66 months and expires in January 2022 with two 5-year extension options. The Company also leases another facility in Grantsville, Utah for use as temporary warehouse space. The lease was entered into in May 2019 with a lease term of 4 months which expired in August 2019 with a holdover option on a month to month basis. In June 2019, the Company entered into a lease for the Company factory outlet in Salt Lake City, Utah with a lease term of 36 months and one 5-year extension option. Also in June 2019, the Company entered into a lease for Corporate office space in Lehi, Utah with a lease term of 10 years, an option to early terminate after the eighty-fourth calendar month, and an option for two 5-year extensions. The Lehi lease commenced in November 2019 and the Company moved its headquarters into the building in February 2020. During 2019, the Company entered into leases for Company showrooms in Seattle, Washington, San Diego, California, Santa Clara, California and Santa Monica, California which commenced in October and November 2019, with lease terms of 3 to 16 months without any renewal options. The Company recognizes rent expense on lease payments, including those with rent escalations and rent-free periods, on a straight-line basis over the expected lease term. During the three months ended March 31, 2020 and 2019, the Company recognized rent expense in the amount of $1.3 million and $0.9 million, respectively. At March 31, 2020, the Company had deferred rent of $6.0 million, of which $0.2 million is short-term and included in other current liabilities and $5.8 million is long-term and included in other long-term liability on the accompanying balance sheet. At March 31, 2019, the Company had deferred rent of $2.6 million all of which is long-term and included in other long-term liabilities on the accompanying balance sheets. Purchase Agreement In February 2018, the Company entered into a purchase contract with a supplier of mineral oil that includes a minimum purchase commitment over a two-year period. In April 2019, the contract was amended to provide for a minimum purchase commitment over a four-year period ending in April 2023. In exchange, the Company is offered a further discount per gallon. As of March 31, 2020, approximately $12.4 million remains on the purchase contract. Based on current usage rates, the Company expects to fulfill its commitments under the agreement in the normal course of business, and as such, no liability has been recorded. Indemnification Obligations From time to time, the Company enters into contracts that contingently require it to indemnify parties against claims. These contracts primarily relate to provisions in the Company's services agreements with related parties that may require the Company to indemnify the related parties against services rendered; and certain agreements with the Company's officers and directors under which the Company may be required to indemnify such persons for liabilities. In connection with the Closing, to secure the payment of a certain portion of specified post-closing indemnification rights of the Company under the Merger Agreement, 0.5 million shares of Class B Stock and 0.5 million Class B Units otherwise issuable to InnoHold as equity consideration have been deposited in an escrow account for up to three years from the Closing pursuant to a contingency escrow agreement. As of March 31, 2020, 0.5 million shares of Class B Stock and 0.5 million Class B Units otherwise issuable to InnoHold as equity consideration remain deposited in an escrow account and no indemnification claims have been made. Subscription Agreement and Preemptive Rights In February 2018, in connection with the Business Combination, the Company entered into a subscription agreement with CCP and Blackwell, pursuant to which CCP and Blackwell agreed to purchase from the Company an aggregate of 4.0 million shares of Class A Stock at a purchase price of $10.00 per share (the "Coliseum Private Placement"). In connection with the Coliseum Private Placement, the Sponsor assigned (i) an aggregate of 1.3 million additional shares of Class A Stock to CCP and Blackwell and (ii) an aggregate of 3.3 million warrants to purchase 1.6 million shares of Class A Stock to CCP, Blackwell, and CDF. The subscription agreement provides CCP and Blackwell with preemptive rights with respect to future sales of the Company's securities. It also provides them with a right of first refusal with respect to certain debt and preferred equity financings by the Company. The Company also entered into a registration rights agreement with CCP, Blackwell, and CDF, providing for the registration of the shares of Class A Stock issued and assigned to CCP and Blackwell in the Coliseum Private Placement, as well as the shares of Class A Stock underlying the warrants received by CCP, Blackwell and CDF. The Company has filed a registration statement with respect to such securities. Rights of Securities Holders The holders of certain Warrants exercisable into Class A Stock and certain other unregistered Class A Stock were entitled to registration rights pursuant to certain registration rights agreements of the Company as of the Business Combination date. In March 2018, the Company filed a registration statement registering the Warrants (and any shares of Class A Stock issuable upon the exercise of the Warrants), and certain unregistered shares of Class A Stock. The registration statement was declared effective on April 3, 2018. The holders of the Incremental Warrants exercisable into Class A Stock were entitled to registration rights pursuant to the registration rights agreement of the Company in connection with the Amended and Restated Credit Agreement. In March 2019, the Company filed a registration statement registering the Warrants (and any shares of Class A Stock issuable upon the exercise of the Warrants). The registration statement was declared effective on May 17, 2019. On February 2, 2018, in connection with the closing of the Business Combination, the Company entered into a Registration Rights Agreement with InnoHold and the Parent Representative (the "InnoHold Registration Rights Agreement"). Under the InnoHold Registration Rights Agreement, InnoHold holds registration rights that obligate the Company to register for resale under the Securities Act, all or any portion of the Equity Consideration (including Class A Common Stock issued in exchange for the equity consideration received in the Business Combination) (the "Registrable Securities"). InnoHold is entitled to make a written demand for registration under the Securities Act of all or part of its Registrable Securities (up to a maximum of three demands in total). Pursuant to the InnoHold Registration Rights Agreement, the Company filed a registration statement on Form S-3 that was declared effective on November 8, 2019, pursuant to which InnoHold, Tony Pearce and Terry Pearce sold 11.5 million shares of Class A Common Stock. On March 10, 2020, the Company filed a second registration statement on Form S-3 covering the resale of 18.0 million shares of Class A Common Stock by InnoHold, but such registration statement has not yet been declared effective. Purple LLC Class B Unit Exchange Right On February 2, 2018, in connection with the Closing, the Company entered into an exchange agreement with Purple LLC and InnoHold and Class B Unit holders who become a party thereto (the "Exchange Agreement"), which provides for the exchange of Purple LLC Class B Units (the "Class B Units") and shares of Class B Stock (together with an equal number of Class B Units, the "Paired Securities") for, at the Company's option, either (A) shares of Class A Stock at an initial exchange ratio equal to one Paired Security for one share of Class A Stock or (B) a cash payment equal to the product of the average of the volume-weighted closing price of one share of Class A Stock for the ten trading days immediately prior to the date InnoHold or other Class B Unit holders deliver a notice of exchange multiplied by the number of Paired Securities being exchanged. In December 2018, InnoHold distributed Paired Securities to Terry Pearce and Tony Pearce who also agreed to become parties to the Exchange Agreement. In June 2019, InnoHold distributed Paired Securities to certain current and former employees who also agreed to become parties to the exchange agreement. Holders of Class B Units may elect to exchange all or any portion of their Paired Securities as described above by delivering a notice to Purple LLC. See Note 16 — Equity Compensation Plans. In certain cases, adjustments to the exchange ratio will occur in case of a split, reclassification, recapitalization, subdivision or similar transaction of or relating to the Class B Units or the shares of Class A Stock and Class B Stock or a transaction in which the Class A Stock is exchanged or converted into other securities or property. The exchange ratio will also adjust in certain circumstances when the Company acquires Class B Units other than through an exchange for its shares of Class A Stock. The right of a holder of Paired Securities to exchange may be limited by the Company if it reasonably determines in good faith that such restrictions are required by applicable law (including securities laws), such exchange would not be permitted under other agreements of such holder with the Company or its subsidiaries, including the Operating Agreement, or if such exchange would cause Purple LLC to be treated as a "publicly traded partnership" under applicable tax laws. The Company and each holder of Paired Securities shall bear its own expense regarding the exchange except that the Company shall be responsible for transfer taxes, stamp taxes and similar duties. During the three months ended March 31, 2020, 1.1 million Paired Securities were exchanged for shares of Class A Stock. Maintenance of One-to-One Ratios The Second Purple LLC Agreement includes provisions intended to ensure that the Company at all times maintains a one-to-one ratio between (a) (i) the number of outstanding shares of Class A Stock and (ii) the number of Class A Units owned by the Company (subject to certain exceptions for certain rights to purchase equity securities of the Company under a "poison pill" or similar stockholder rights plan, if any, certain convertible or exchangeable securities issued under the Company's equity compensation plan and certain equity securities issued pursuant to the Company's equity compensation plan (other than a stock option plan) that are restricted or have not vested thereunder) and (b) (i) the number of other outstanding equity securities of the Company (including the warrants exercisable for shares of Class A Stock) and (ii) the number of corresponding outstanding equity securities of Purple LLC. These provisions are intended to result in InnoHold and other non-controlling interest holders having a voting interest in the Company that is identical to their economic interest in Purple LLC. Non-Income Related Taxes The U.S. Supreme Court ruling in South Dakota v. Wayfair, Inc. Legal Proceedings On January 9, 2018, Chris Knudsen, a former consultant to the company, filed a complaint against Purple LLC in the Fourth Judicial District Court of the State of Utah. Mr. Knudsen alleges that before his consulting contract ended in March 2016, he and Purple LLC reached an oral agreement under which Mr. Knudsen would become the company's chief executive officer on April 1, 2016, and under which Mr. Knudsen would immediately receive a 4% equity interest in Purple LLC. Mr. Knudsen alleges that Purple LLC's failure to convey to him a 4% equity interest in the company constitutes a breach of that oral agreement, and Mr. Knudsen claims damages of $10.75 million, based on his calculation of the value of a 4% interest in Purple LLC. In the alternative, Mr. Knudsen seeks declaratory relief that he owns the 4% equity position in Purple LLC. Purple LLC denies that it reached an agreement with Mr. Knudsen for him to assume the role of chief executive officer and denies that it reached an agreement to provide equity to Mr. Knudsen. Purple LLC believes that Mr. Knudsen's lawsuit is without merit and is vigorously contesting it. The Company maintains insurance to defend against claims of this nature, which management believes is adequate to cover the cost of its defense of Mr. Knudsen's claims. Fact discovery and expert discovery in this matter has been completed. In October 2019, Purple LLC moved for summary judgment on Mr. Knudsen's claims, and the court will hear oral argument on that motion in May 2020. On September 9, 2019, Purple LLC filed a Statement of Claim against PerfectSense Home Inc. and PerfectSense Trading Co. Ltd. (collectively, "PerfectSense") in the Federal Court of Canada. PerfectSense is a manufacturer and supplier of mattresses and related products. PerfectSense owns the domain name www.purplesleep.ca, which used to, but no longer, redirects to its website at www.perfectsense.ca. In addition to this, Purple LLC has alleged that PerfectSense has: designed their mattresses with the same look as the Purple mattresses (white mattress top, purple stripe, and grey bottom); used many of the marketing elements on Purple's website (including a similar "exploded view" image of their mattress); and adopted the color purple as their dominant marketing color. Purple LLC is suing for a declaration that PerfectSense has infringed Purple LLC's copyright and trademark rights and committed the tort of passing off. Purple LLC is asking for injunctive relief, damages, an accounting of profits, interest, costs, and delivery up or destruction of the infringing products (including delivery up of the www.purplesleep.ca domain). After filing the statement of claim, Purple LLC posted $15,000 CAD as security for PerfectSense's costs. PerfectSense recently brought a motion to strike that was resolved on consent. Pleadings are now closed, and the action will proceed under case management. The Company is from time to time involved in various other claims, legal proceedings and complaints arising in the ordinary course of business. The Company does not believe that adverse decisions in any such pending or threatened proceedings, or any amount that the Company might be required to pay by reason thereof, would have a material adverse effect on the financial condition or future results of the Company.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions [Abstract]
Related Party Transactions	12. Related Party Transactions The Company had various transactions with entities or individuals which are considered related parties. Coliseum Capital Management, LLC Immediately following the Business Combination, Adam Gray was appointed to the Company's board of directors. Mr. Gray is a manager of Coliseum Capital, LLC, which is the general partner of CCP and CDF, and he is also a managing partner of Coliseum Capital Management, LLC ("CCM"), which is the investment manager of Blackwell. Mr. Gray has voting and dispositive control over securities held by CCP, CDF and Blackwell which are also Lenders under the Amended and Restated Credit Agreement. In 2018, the Lenders agreed to make a loan in an aggregate principal amount of $25.0 million pursuant to the Credit Agreement entered into as part of the Business Combination. In conjunction with the Credit Agreement, the Sponsor agreed to assign to the Lenders an aggregate of 2.5 million warrants to purchase 1.3 million shares of its Class A Stock. In 2019, two of the Lenders agreed to provide an incremental loan of $10.0 million (see Note 10 – Long-term Debt, Related-party In February 2018, in connection with the Business Combination, the Company entered into a subscription agreement with CCP and Blackwell, pursuant to which CCP and Blackwell agreed to purchase from the Company an aggregate of 4.0 million shares of Class A Stock at a purchase price of $10.00 per share (the "Coliseum Private Placement"). In connection with the Coliseum Private Placement, the Sponsor assigned (i) an aggregate of 1.3 million additional shares of Class A Stock to CCP and Blackwell and (ii) an aggregate of 3.3 million warrants to purchase 1.6 million shares of Class A Stock to CCP, Blackwell, and CDF. The subscription agreement provides CCP and Blackwell with preemptive rights with respect to future sales of the Company's securities. It also provides them with a right of first refusal with respect to certain debt and preferred equity financings by the Company. The Company also entered into a registration rights agreement with CCP, Blackwell, and CDF, providing for the registration of the shares of Class A Stock issued and assigned to CCP and Blackwell in the Coliseum Private Placement, as well as the shares of Class A Stock underlying the warrants received by CCP, Blackwell and CDF. The Company has filed a registration statement with respect to such securities. Purple Founder Entities TNT Holdings, LLC (herein "TNT Holdings"), EdiZONE, LLC (herein "EdiZONE") and InnoHold, LLC (herein "InnoHold") (the "Purple Founder Entities") were entities under common control with Purple LLC prior to the Business Combination as TNT Holdings and InnoHold are majority owned and controlled by Terry Pearce and Tony Pearce (with EdiZONE being wholly owned by TNT Holdings) who also were the founders of Purple LLC and immediately following the Business Combination were appointed to the Company's Board (the "Purple Founders"). InnoHold is a majority shareholder of the Company. TNT Holdings owns the Alpine facility Purple LLC leases. Effective as of October 31, 2017, Purple LLC entered into an Amended and Restated Lease Agreement with TNT Holdings. The Company determined that TNT Holdings is not a VIE as neither the Company nor Purple LLC hold any explicit or implicit variable interest in TNT Holdings and do not have a controlling financial interest in TNT Holdings. The Company incurred $0.2 million and $0.3 million in rent expense to TNT Holdings for the building lease of the Alpine facility for the three months ended March 31, 2020 and 2019, respectively. The Company has been leasing its headquarters facility in Alpine, Utah from TNT Holdings since 2010. The Company has leased a new facility in Lehi, Utah and moved its headquarters into that building in February 2020. The Company intends to continue to lease the building in Alpine, Utah from TNT Holdings and use it for production, research and development and video production. During the three months ended March 31, 2020, 1.1 million Paired Securities have been exchanged for Class A Stock by entities and certain current and former employees of the Company who received distributions of such Paired Securities from InnoHold.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2020
Equity [Abstract]
Stockholders' Equity	13. Stockholders' Equity Prior to the Business Combination, GPAC was a shell company with no operations, formed as a vehicle to effect a business combination with one or more operating businesses. After the Closing, the Company became a holding company whose sole material asset consists of its interest in Purple LLC. Class A Common Stock The Company has 210.0 million shares of Class A Stock authorized at a par value of $0.0001 per share. Holders of the Company's Class A Stock are entitled to one vote for each share held on all matters to be voted on by the stockholders and participate in dividends, if declared by the Board, or receive any portion of any such assets in respect of their shares upon liquidation, dissolution, distribution of assets or winding-up of the Company in excess of the par value of such stock. Holders of the Class A Stock and holders of the Class B Stock voting together as a single class, have the exclusive right to vote for the election of directors and on all other matters properly submitted to a vote of the stockholders. Holders of Class A Stock and Class B Stock are entitled to one vote per share on matters to be voted on by stockholders. At March 31, 2020, 23.6 million shares of Class A Stock were outstanding. In accordance with the terms of the Business Combination, approximately 1.3 million shares of Class A Stock were subject to vesting and forfeiture. The shares of Class A Stock subject to vesting will be forfeited eight years from the Closing, unless any of the following events (each a "Triggering Event") occurs prior to that time:(i) the closing price of the Class A Stock on the principal exchange on which it is listed is at or above $12.50 for 20 trading days over a thirty trading day period (subject to certain adjustments), (ii) a change of control of the Company, (iii) a "going private" transaction by the Company pursuant to Rule 13e-3 under the Exchange Act or such other time as the Company ceases to be subject to the reporting obligations under Section 13 or 15(d) of the Exchange Act, or (iv) the time that the Company's Class A Stock ceases to be listed on a national securities exchange. During the three months ended March 31, 2020, a Triggering Event occurred as the closing price of the Class A Stock on the principal exchange on which it is listed was at or above $12.50 for 20 trading days over a thirty trading day period. Accordingly, the shares of Class A Stock are no longer subject to vesting or forfeiture. Class B Common Stock The Company has 90.0 million shares of Class B Stock authorized at a par value of $0.0001 per share. Holders of the Company's Class B Stock will vote together as a single class with holders of the Company's Class A Stock on all matters properly submitted to a vote of the stockholders. Shares of Class B Stock may be issued only to InnoHold, their respective successors and assigns, as well as any permitted transferees of InnoHold. A holder of Class B Stock may transfer shares of Class B Stock to any transferee (other than the Company) only if such holder also simultaneously transfers an equal number of such holder's Purple LLC Class B Units to such transferee in compliance with the Second Purple LLC Agreement. The Class B Stock is not entitled to receive dividends, if declared by the Board, or to receive any portion of any such assets in respect of their shares upon liquidation, dissolution, distribution of assets or winding-up of the Company in excess of the par value of such stock. In connection with the Business Combination, approximately 44.1 million shares of Series B Stock were issued to InnoHold as part of the equity consideration. At March 31, 2020, 30.3 million shares of Class B Stock were outstanding. Preferred Stock The Company has 5.0 million shares of preferred stock authorized at a par value of $0.0001 per share. The preferred stock may be issued from time to time in one or more series. The directors are expressly authorized to provide for the issuance of shares of the preferred stock in one or more series and to establish from time to time the number of shares to be included in each such series and to fix the voting rights, designations and other special rights or restrictions. At March 31, 2020, there were no shares of preferred stock outstanding. Public and Sponsor Warrants There were 15.5 million public warrants (the "Public Warrants") issued in connection with GPAC's formation and IPO and 12.8 million warrants (the "Sponsor Warrants"), issued pursuant to a private placement simultaneously with the IPO. Each of the Company's warrants entitles the registered holder to purchase one-half of one share of the Company's Class A Stock at a price of $5.75 per half share ($11.50 per full share), subject to adjustment pursuant to the terms of the warrant agreement. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of the Class A Stock. For example, if a warrant holder holds one warrant to purchase one-half of one share of Class A Stock, such warrant will not be exercisable. If a warrant holder holds two warrants, such warrants will be exercisable for one share of the Class A Stock. In no event will the Company be required to net cash settle any warrant. The warrants have a five-year term which commenced on March 2, 2018, 30 days after the completion of the Business Combination, and will expire on February 2, 2023, or earlier upon redemption or liquidation. The Company may call the warrants for redemption if the reported last sale price of the Class A Stock equals or exceeds $24.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders; provided, however, that the Sponsor Warrants are not redeemable by the Company so long as they are held by the Sponsor or its permitted transferees. In addition, with respect to the Sponsor Warrants, so long as such Sponsor Warrants are held by the Sponsor or its permitted transferee, the holder may elect to exercise the Sponsor Warrants on a cashless basis, by surrendering their Sponsor Warrants for that number of shares of Class A Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Stock underlying the Sponsor Warrants, multiplied by the difference between the exercise price of the Sponsor Warrants and the "fair market value" (defined below), by (y) the fair market value. The "fair market value" means the average reported last sale price of the Class A Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of warrant exercise is sent to the warrant agent. All other terms, rights and obligations of the Sponsor Warrants remain the same as the Public Warrants. Both the Public and Sponsor Warrants are classified as equity instruments in the accompanying condensed consolidated balance sheet. From the time of GPAC's IPO up to the Business Combination with Purple LLC, GPAC had 28.3 million warrants outstanding. During the three months ended March 31, 2020, one exercise of warrants occurred for a de minimis amount. At March 31, 2020, approximately 28.3 million warrants remain outstanding. Incremental Loan Warrants In connection with the Amended and Restated Credit Agreement, the Company issued to CCP and Blackwell, as the Incremental Lenders funding the Incremental Loan, 2.6 million Incremental Loan Warrants to purchase 2.6 million shares of the Company's Class A Stock. Each Incremental Loan Warrant entitles the registered holder to purchase one share of the Company's Class A Stock at a price of $5.74 per share, subject to adjustment pursuant to the terms of the warrant agreement. The Incremental Loan Warrants have a five-year term and will expire on February 26, 2024, or earlier upon redemption or liquidation. The Company may call the warrants for redemption at a price of $0.01 per Share of Class A Stock if the reported last sale price of the Class A Stock equals or exceeds $24.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders. If the Company calls the Incremental Loan Warrants for redemption, it will have the option to require the holder to exercise the Incremental Loan Warrants on a cashless basis, by surrendering their Incremental Loan Warrants for that number of shares of Class A Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Stock underlying the Incremental Loan Warrants, multiplied by the difference between the exercise price of the Sponsor Warrants and the "fair market value" (defined below), by (y) the fair market value. The "fair market value" means the average reported last sale price of the Class A Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of Incremental Loan Warrants. In the event of a "fundamental transaction" as defined in the warrant agreement, the holder will have the right to purchase and receive the same kind and amount of consideration receivable by the stockholders of the Company upon the occurrence of such fundamental transaction. The warrant agreement requires the Company to cause the surviving company in a fundamental transaction, to assume the obligations of the Company under the Incremental Loan Warrants. In addition, a clause in the Incremental Loan Warrant Agreement states, upon the occurrence of a fundamental transaction, that the holders of the Incremental Loan Warrants may elect to either (i) have the exercise price of the warrant reduced by the Black-Scholes value of the Incremental Loan Warrants (as set forth in the Incremental Loan Warrants Agreement) or (ii) cause the Company or its successor to repurchase all or a portion of the Incremental Loan Warrants at the Black-Scholes value (as set forth in the Incremental Loan Warrants). In addition, upon the occurrence of any of the additional following events: (1) acquisition of 25% or more of the total voting power of all the securities of the entity by any one person or group of affiliated persons or entities; (2) Tony Pearce or Terry Pearce individually or together ceasing to beneficially own at least 50% of the voting securities of the Company; or (3) the Board of Directors ceasing to be comprised of a majority of independent directors as defined under NASDAQ rules, the exercise price of the warrant will be reduced by a value based upon a formula model established in the agreement. As a result of these clauses, the Incremental Loan Warrants embody an obligation to repurchase the Company's equity shares, or is indexed to such an obligation, and may require the Company to settle the obligation by transferring assets. As such, the Incremental Loan Warrants are classified as liabilities under ASC 480 - Distinguishing Liabilities from Equity Noncontrolling Interest Noncontrolling interest ("NCI") is the membership interest held by holders other than the Company. On February 2, 2018, upon the close of the Business Combination, and at December 31, 2018, InnoHold's and other Purple LLC Class B Unit holders' combined NCI percentage in Purple LLC was approximately 82%. At March 31, 2020, the combined NCI percentage in Purple LLC was approximately 56%. The Company has consolidated the financial position and results of operations of Purple LLC and reflected the proportionate interest held by all such Purple LLC Class B Unit holders as NCI.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes The Company's sole material asset is Purple LLC, which is treated as a partnership for U.S. federal income tax purposes and for purposes of certain state and local income taxes. Purple LLC's net taxable income and any related tax credits are passed through to its members and is included in the members' tax returns, even though such net taxable income or tax credits may not have actually been distributed. While the Company consolidates Purple LLC for financial reporting purposes, the Company will be taxed on its share of earnings of Purple LLC not attributed to the noncontrolling interest holders, which will continue to bear their share of income tax on its allocable earnings of Purple LLC. The income tax burden on the earnings taxed to the noncontrolling interest holders is not reported by the Company in its consolidated financial statements under GAAP. As a result, the Company's effective tax rate differs materially from the statutory rate. The primary factors impacting the expected tax are the allocation of tax benefit to noncontrolling interest and the impact of the valuation allowance. As of March 31, 2020, the Company has recorded a full valuation allowance on its net deferred tax assets. In assessing the realizability of deferred tax assets, management determined that it is more likely than not that its net deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible and consideration of tax-planning strategies. Considering these factors, a valuation allowance was recorded in the year ended December 31, 2019, and the Company continues to be in a full valuation allowance position for the three months ended March 31, 2020. The Company currently estimates its annual effective income tax rate to be 1.0%. The effective tax rate for the Company differs from the federal rate of 21% primarily due to (1) a full valuation allowance, (2) NCI in Purple LLC that is allocated to InnoHold and (3) various other items such as limitations on meals and entertainment, certain stock compensation and other costs. For the three months ended March 31, 2020, the Company has recorded an income tax benefit in the amount of $0.3 million due to the normal accrual of income taxes using the annual effective tax rate approach, offset by discrete tax benefits related to the effects of the CARES Act discussed below In response to the COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (2017 Tax Act). Corporate taxpayers may carryback net operating losses (NOLs) originating during 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for tax years beginning January 1, 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act. In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. The enactment of the CARES Act resulted in two adjustments to our income tax provision for the three months ended March 31, 2020, relating to increased 2019 NOL utilization and tax benefits from NOL carrybacks. We have recorded a discrete benefit of $0.5 million in our income tax provision for the three months ended March 31, 2020 related to the CARES Act. In connection with the Business Combination, the Company entered into the Tax Receivable Agreement with InnoHold, which provides for the payment by the Company to InnoHold of 80% of the net cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes (or is deemed to realize in certain circumstances) in periods after the Closing as a result of (i) any tax basis increases in the assets of Purple LLC resulting from the distribution to InnoHold of the cash consideration, (ii) the tax basis increases in the assets of Purple LLC resulting from the redemption by Purple LLC or the exchange by the Company, as applicable, of Class B Paired Securities or cash, as applicable, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, payments it makes under the Tax Receivable Agreement. As noncontrolling interest holders exercise their right to exchange or cause Purple LLC to redeem all or a portion of their Class B Units, a TRA Liability may be recorded based on 80% of the estimated future cash tax savings that the Company may realize as a result of increases in the basis of the assets of Purple LLC attributed to the Company as a result of such exchange or redemption. The amount of the increase in asset basis, the related estimated cash tax savings and the attendant TRA Liability to be recorded will depend on the price of the Company's Class A Stock at the time of the relevant redemption or exchange. The estimation of liability under the Tax Receivable Agreement is by its nature imprecise and subject to significant assumptions regarding the amount and timing of future taxable income. As a result of 13.7 million life to date exchanges of Class B Units for Class A Stock, the potential future TRA Liability is $37.5 million, which has not been recorded due to the valuation allowance on the deferred tax assets, with the exception of $0.8 million as the Company has realized cash tax benefits under the Tax Receivable Agreement. The effects of uncertain tax positions are recognized in the consolidated financial statements if these positions meet a "more-likely-than-not" threshold. For those uncertain tax positions that are recognized in the consolidated financial statements, liabilities are established to reflect the portion of those positions it cannot conclude "more-likely-than-not" to be realized upon ultimate settlement. The Company's policy is to recognize interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying consolidated statement of operations. Accrued interest and penalties would be included on the related tax liability line in the consolidated balance sheet. As of March 31, 2020, no uncertain tax positions were recognized as liabilities in the condensed consolidated financial statements. Early Warning of Possible Valuation Allowance Reversal in Future Periods The Company recorded a valuation allowance against all of the deferred tax assets as of March 31, 2020 and December 31, 2019. The Company intends to continue maintaining a full valuation allowance on the deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. However, given the current earnings and anticipated future earnings, the Company believes there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow the Company to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. In addition, the full potential future TRA Liability will be required to be recognized. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve.

Net Income (Loss) Per Common Sh

Net Income (Loss) Per Common Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Net Income (Loss) Per Common Share	15. Net Income (Loss) Per Common Share The Business Combination was structured similar to a reverse recapitalization by which the Company issued stock for the net assets of Purple LLC accompanied by a recapitalization. The following table sets forth the calculation of basic and diluted weighted average shares outstanding and earnings per share for the periods presented (in thousands, except per share amounts): Three Months Ended 2020 2019 Net income (loss) (numerator): Net income (loss) attributable to Purple Innovation, Inc.-basic $ 8,835 $ (130 ) Less: dilutive effect of change in fair value liabilities (5,958 ) — Net income (loss) attributable to Purple Innovation, Inc.-diluted $ 2,877 $ (130 ) Weighted average shares (denominator): Weighted average shares—basic 22,675 8,437 Add: dilutive effects of equity awards 1,390 — Add: dilutive effects of incremental warrants 1,262 — Weighted average shares—diluted 25,327 8,437 Net income (loss) per common share: Basic $ 0.39 $ (0.02 ) Diluted $ 0.11 $ (0.02 ) For the three months ended March 31, 2020, the Company excluded 31.3 million Paired Securities convertible into shares of Class A Stock, 14.2 million shares of Class A Stock issuable upon conversion of certain Company warrants and stock options and 0.1 million shares of issued Class A Stock subject to vesting as the effect was anti-dilutive. For the three months ended March 31, 2019, the Company excluded 44.1 million Paired Securities convertible into shares of Class A Stock, 17.7 million shares of Class A Stock issuable upon conversion of the Company's warrants and 1.3 million shares of issued Class A Stock subject to vesting as the effect was anti-dilutive.

Equity Compensation Plans

Equity Compensation Plans	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Equity Compensation Plans	16. Equity Compensation Plans 2017 Equity Incentive Plan The Purple Innovation, Inc. 2017 Equity Incentive Plan (the "2017 Incentive Plan") provides for grants of stock options, stock appreciation rights, restricted stock and other stock-based awards. Directors, officers and other employees and subsidiaries and affiliates, as well as others performing consulting or advisory services for the Company and its subsidiaries, will be eligible for grants under the 2017 Incentive Plan. The aggregate number of shares of Common Stock which may be issued or used for reference purposes under the 2017 Incentive Plan or with respect to which awards may be granted may not exceed 4.1 million shares. As of March 31, 2020, approximately 2.3 million shares remain available under the 2017 Incentive Plan. Class A Common Stock Awards In March 2020, the Company granted a restricted stock award under the Company's 2017 Equity Incentive Plan to the Company's independent Board advisor and GPAC observer. The stock award vests in March 2021. As this award includes a service condition, the estimated fair value of the restricted stock is measured on the grant date and is recognized over the service period. The Company determined that the fair value of the restricted stock on the grant date was immaterial. Employee Stock Options During the three months ended March 31, 2020, the Company granted stock options under the Company's 2017 Equity Incentive Plan to certain management of the Company. The stock options have an exercise price of $12.76 per option. The stock options expire in five years and vest over a four-year period. The estimated fair value of the stock options, less expected forfeitures, is amortized over the options vesting period on a straight-line basis. The Company determined the fair value of the options granted during the three months ended March 31, 2020 using the Black Scholes method with the following assumptions: Fair market value $ 8.02 Exercise price $ 12.76 Risk free interest rate 0.61 % Expected term in years 3.56 Expected volatility 38.28 % Expected dividend yield — The following table summarizes the Company's total stock option activity for the three months ended March 31, 2020: Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Intrinsic Value $ As of March 31, 2020: Options outstanding as of January 1, 2020 2,136 $ 6.95 4.3 $ — Granted 25 12.76 — — Exercised — — — — Forfeited/cancelled (20 ) 6.51 — — Options outstanding as of March 31, 2020 2,141 $ 7.03 4.1 $ — Outstanding and exercisable stock options as of March 31, 2020 are as follows: Options Outstanding Options Exercisable Exercise Prices Number of Options Outstanding Weighted (Years) Number of Options Exercisable Weighted Intrinsic Value $ 5.75 250 3.89 68 $ 3.89 $ — 5.95 538 3.50 191 3.50 — 6.51 338 4.14 85 4.14 — 6.65 200 4.11 — — — 8.07 8 4.41 — — — 8.17 325 4.50 81 4.50 8.32 250 4.25 — — — 12.76 25 4.95 — — — The estimated fair value of the Company stock options, less expected forfeitures, is amortized over the options vesting period on the straight-line basis. The Company recognized $0.2 million and $0.1 million in stock-based compensation expenses related to stock options during the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there was $2.7 million of total unrecognized stock compensation cost with a remaining recognition period of 3.0 years. InnoHold Incentive Units In January 2017, pursuant to the 2016 Equity Incentive Plan approved by InnoHold and Purple LLC that authorized the issuance of 12.0 million incentive units, Purple LLC granted 11.3 million incentive units to Purple Team LLC, an entity for the benefit of certain employees who were participants in that plan. In conjunction with the Business Combination, Purple Team LLC was merged into InnoHold with InnoHold being the surviving entity and the Purple Team LLC incentive units were cancelled and new incentive units were issued by InnoHold under its own limited liability company agreement (the "InnoHold Agreement"). On February 8, 2019, InnoHold initiated a tender offer to each of these incentive unit holders, some of which are current employees of Purple LLC, to distribute to each a pro rata number of 2.5 million Paired Securities held by InnoHold in exchange for the cancellation of their ownership interests in InnoHold. All InnoHold incentive unit holders accepted the offer, and the terms and distribution of each transaction were finalized and closed on June 25, 2019. At the closing of the tender offer, those incentive unit holders received, based on their pro rata holdings of InnoHold Class B Units, a portion of 2.5 million Paired Securities held by InnoHold. As of March 31, 2020, 1.1 million of the Paired Securities remain to be exchanged for Class A Stock by the incentive unit holders. A small number of Paired Securities remain subject to vesting contingent upon such current employees' continued employment with the Company. Aggregate Non-Cash Stock Compensation The Company has accounted for all stock-based compensation under the provisions of ASC 718 Compensation—Stock Compensation. This standard requires the Company to record a non-cash expense associated with the fair value of stock-based compensation over the requisite service period. The table below summarizes the aggregate non-cash stock compensation recognized in the statement of operations for stock awards, employee stock options and the distribution by InnoHold of Paired Securities. (in thousands) Three Months Ended Non-Cash Stock Compensation 2020 2019 Cost of revenues $ 35 $ — Marketing and sales 60 — General and administrative 151 73 Research and development 4 — Total non-cash stock compensation $ 250 $ 73

Employee Retirement Plan

Employee Retirement Plan	3 Months Ended
	Mar. 31, 2020
Retirement Benefits [Abstract]
Employee Retirement Plan	17. Employee Retirement Plan In July 2018 the Company established a 401(k) plan that qualifies as a deferred compensation arrangement under Section 401 of the IRS Code. All eligible employees over the age of 18 and with 4 months' service are eligible to participate in the plan. The plan provides for Company matching of employee contributions up to 5% of eligible earnings. Company contributions immediately vest. The Company matching contribution expense was $0.4 million and $0.3 million for the three months ended March 31, 2020 and 2019, respectively.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	18. Subsequent Events On April 2, 2020, Mary Harper, an individual purporting to reside in Montana, filed a class action complaint against Purple Inc. in the United States District Court District of Montana, Billings Division. Ms. Harper alleges Purple Inc. sent her text message advertisements to her cellular telephone and the cellular telephones of numerous other individuals across the country in violation of the Telephone Consumer Protection Act, 47 U.S.C. § 227 ("TCPA"). Purple Inc. does not engage in any telephone-based marketing communication either directly or through third party affiliates. Purple LLC, a subsidiary company of Purple Inc., is the operational, branding, and marketing company associated with the Purple brand. At all times, Purple LLC maintained, and continues to maintain, strict compliance with telephone marketing laws and only communicates with individual who have provide written consent through a double opt-in process. Purple Inc., and Purple LLC if added as a defendant, maintain that Ms. Harper's lawsuit is without merit and will vigorously contest it. On April 23, 2020, the Company and TNT Holdings entered into an amendment to the lease agreement on the Alpine, Utah facility. Under the current lease, TNT Holdings is allowed to charge the cost of the commercial general liability insurance to the Company. This amendment gives the Company an insurable interest that allows the Company to obtain the insurance directly, thereby controlling the cost of insurance, and name TNT Holdings as a co-insured.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The Company consists of Purple Inc. and its consolidated subsidiary Purple LLC. Pursuant to the Business Combination described in Note 3— Business Combination The Business Combination was structured similar to a reverse recapitalization. The historical operations of Purple LLC are deemed to be those of the Company. Thus, the financial statements included in this report reflect (i) the historical operating results of Purple LLC prior to the Business Combination; (ii) the combined results of the Company following the Business Combination; (iii) the assets and liabilities of Purple LLC at their historical cost; and (iv) the Company's equity and earnings per share for all periods presented. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting and reflect the financial position, results of operations and cash flows of the Company. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and accompanying notes included in the Company's Annual Report on Form 10-K filed March 9, 2020. The unaudited condensed consolidated financial statements were prepared on the same basis as the audited financial statements and, in the opinion of management, reflect all adjustments (all of which were considered of normal recurring nature) considered necessary to present fairly the Company's financial results. The results of the three months ended March 30, 2020 are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or for any other interim period or other future year. COVID-19 Pandemic Developments The COVID-19 pandemic has recently had adverse impacts on many aspects of our operation, directly and indirectly, including our employees, consumer behavior, distribution and logistics, our suppliers, and the market overall. The scope and nature of these impacts continue to evolve each day. In light of the uncertain and rapidly evolving situation relating to the COVID-19 pandemic, we have taken a number of precautionary measures to manage our resources and mitigate the adverse impact of the pandemic, which is intended to help minimize the risk to our Company, employees, customers, and the communities in which we operate. Employees at the Company's headquarters and certain other employees have been asked to work from home where possible. For roles that require employees to be on-site, such as our manufacturing facility and distribution center, we are providing protective equipment, practicing social distancing and increasing sanitizing standards. We have experienced a sharp decline in the wholesale side of our business as temporary shutdowns of non-essential businesses and shelter-at-home directives have occurred in most U.S. states. Also, we have temporarily closed our three showrooms in California in compliance with locally mandated shelter-in-place requirements. We continue to serve customers through our Direct to Consumer ("DTC") channel, and during the first quarter of 2020, some consumer demand for our premium, differentiated product offering shifted to our DTC channel. In response, we have refocused our efforts back to our DTC core competencies resulting in an acceleration in DTC channel sales across all of our product categories in the last half of March. This increase in online demand has produced online growth of 50% over the prior year first quarter, partially offsetting declines from our 2020 forecast in our wholesale channel. There can be no assurance that this trend of increased demand through our DTC channel will continue. This increase in DTC demand allowed us to work through a portion of our on-hand inventory. Given the difficultly in predicting how long this pandemic will persist and its full impact, we continue to look at all opportunities to preserve liquidity. This included taking advantage of our vertically integrated business model to adjust production schedules to leverage inventory on hand and tightly manage labor costs, including temporarily furloughing roughly 35% of our permanent workforce. We also continue to dynamically adjust our significant discretionary online advertising spend in response to any changes in DTC trends as they develop. The Company has temporarily deferred 25% of the cash compensation of Senior Executives and all the cash compensation of the Board of Directors. In addition, in March 2020 we entered into an amendment to our Amended and Restated Credit Agreement to allow the Company to defer 5% of the interest for quarterly payments due during the first two quarters of 2020. In addition, we are temporarily reducing our capital spend by delaying all non-maintenance related projects and investments in non-essential initiatives and headcount additions until we have better visibility into when conditions normalize. Other proactive steps have been taken to carefully manage cash in response to the rapidly changing circumstances. We anticipate being able to start paying deferred compensation and moving forward with capital spend on certain growth initiatives during the second quarter. The Company intends to proceed cautiously and continue to take proactive steps to manage cash and respond quickly and prudently to new COVID-19 related circumstances. Our supply chain has not as yet been significantly affected by COVID-19. Currently, our domestic suppliers are able to continue operations and provide necessary materials when needed. Suppliers in China were temporarily closed as a result of the pandemic but we had sufficient inventory on hand. Many of our suppliers resumed production in March and are able to supply materials as needed. As a result, we don't expect supply to have a material impact on our ability to meet anticipated demand. Although each of the remedial measures was taken by the Company to protect the business and preserve liquidity, each may also have the potential to have a material adverse impact on our current business, financial condition and results of operations, and may create additional risks for our Company. While we anticipate that the foregoing measures are temporary, we cannot predict the specific duration for which these precautionary measures will stay in effect, and we may elect or need to take additional measures as the information available to us continues to develop, including with respect to our employees, manufacturing facility and distribution center, and relationships with our suppliers and customers. Subject to certain assumptions regarding the duration and severity of the COVID-19 pandemic, and government, consumer, and our responses thereto, based on our current projections we believe our cash on hand, ongoing cash generated from e-commerce and eventual resumption and ramp up of store operations and our wholesale business, will be sufficient to cover our working capital requirements and anticipated capital expenditures for the next 12 months. However, the extent to which the COVID-19 pandemic and our precautionary measures in response thereto may impact our business will depend on future developments, which are highly uncertain and cannot be precisely predicted at this time.
Variable Interest Entities	Variable Interest Entities Purple LLC is a variable interest entity ("VIE"). The Company determined that it is the primary beneficiary of Purple LLC as it is the sole managing member and has the power to direct the activities most significant to Purple LLC's economic performance as well as the obligation to absorb losses and receive benefits that are potentially significant. At March 31, 2020, Purple Inc. had approximately a 44% economic interest in Purple LLC and consolidated 100% of Purple LLC's assets, liabilities and results of operations in the Company's unaudited condensed consolidated financial statements contained herein. At March 31, 2020, InnoHold and other parties owned approximately 56% of the economic interest in Purple LLC; however, InnoHold and other parties have disproportionally fewer voting rights, and are shown as the noncontrolling interest ("NCI") holder of Purple LLC. For further discussion see Note 13 — Stockholders' Equity.
Use of Estimates	Use of Estimates The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. The Company regularly makes significant estimates and assumptions including, but not limited to, estimates that affect the Company's revenue recognition, accounts receivable and allowance for doubtful accounts, valuation of inventories, cost of revenues, sales returns, warranty returns, the recognition and measurement of loss contingencies, warrant liabilities, estimates of current and deferred income taxes, deferred income tax valuation allowances and amounts associated with the Company's Tax Receivable Agreement with InnoHold (the "Tax Receivable Agreement"). Predicting future events is inherently an imprecise activity and, as such, requires the use of judgment. The Company bases its estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from those estimates.
Revenue Recognition	Revenue Recognition In May 2014, in addition to several amendments issued during 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The Company adopted this ASU effective January 1, 2019 on a modified retrospective basis. Adoption of this standard did not result in significant changes to the Company's accounting policies, business processes, systems or controls, or have a material impact on the Company's financial position, results of operations, or cash flows. As such, the Company did not record a cumulative adjustment to the opening equity balance of accumulated deficit as of January 1, 2019. However, additional disclosures have been added in accordance with the requirements of Topic 606 and are reflected in Note 4 – Revenue from Contracts with Customers. The Company markets and sells its products through direct-to-consumer online channels, traditional wholesale partners, third-party online retailers, the Company factory outlet store and Company showrooms. Revenue is recognized when the Company satisfies its performance obligations under the contract which is transferring the promised products to the customer. This principle is achieved in the following steps: Identify the contract with the customer. Identify the performance obligations in the contract Determine the transaction price Allocate the transaction price to performance obligations in the contract. Recognize revenue when or as we satisfy a performance obligation.
Debt Issuance Costs and Discounts	Debt Issuance Costs and Discounts Debt issuance costs and discounts are presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability and are amortized into interest expense using an effective interest rate over the duration of the debt. Refer to Note 8 – Long-Term Debt, Related-Party.
Liability Warrants	Liability Warrants The Company accounts for liability warrants under the provisions of ASC 480 - Distinguishing Liabilities from Equity Warrant Liabilities
Fair Value Measurements	Fair Value Measurements The Company uses the fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. 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, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1—Quoted market prices in active markets for identical assets or liabilities; Level 2—Significant other observable inputs (e.g. quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable, such as interest rate and yield curves, and market-corroborated inputs); and Level 3—Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. The classification of fair value measurements within the established three-level hierarchy is based upon the lowest level of input that is significant to the measurements. Financial instruments, although not recorded at fair value on a recurring basis include cash and cash equivalents, receivables, accounts payable, accrued expenses and the Company's debt obligations. The carrying amounts of cash and cash equivalents, receivables, accounts payable and accrued expenses approximate fair value because of the short-term nature of these accounts. The fair value of the Company's debt instrument is estimated to be its face value based on the contractual terms of the debt instrument and market-based expectations. The warrant liability is a Level 3 instrument and uses an internal model to estimate fair value using certain significant unobservable inputs which requires determination of relevant inputs and assumptions. Accordingly, changes in these unobservable inputs may have a significant impact on fair value. Such inputs include risk free interest rate, expected average life, expected dividend yield, and expected volatility. These Level 3 liabilities would decrease (increase) in value based upon an increase (decrease) in risk free interest rate and expected dividend yield. Conversely, the fair value of these Level 3 liabilities would generally increase (decrease) in value if the expected average life or expected volatility were to increase (decrease).
Income Taxes	Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. In assessing the realizability of deferred tax assets, management considers whether it is more-likely-than-not that the deferred tax assets will be realized. Deferred tax assets and liabilities are calculated by applying existing tax laws and the rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the year of the enacted rate change. Our effective tax rate is primarily impacted by the allocation of income taxes to the noncontrolling interest and changes in our valuation allowance. The Company accounts for uncertainty in income taxes using a recognition and measurement threshold for tax positions taken or expected to be taken in a tax return, which are subject to examination by federal and state taxing authorities. The tax benefit from an uncertain tax position is recognized when it is more likely than not that the position will be sustained upon examination by taxing authorities based on technical merits of the position. The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The effective tax rate and the tax basis of assets and liabilities reflect management's estimates of the ultimate outcome of various tax uncertainties. The Company recognizes penalties and interest related to uncertain tax positions within the provision (benefit) for income taxes line in the accompanying consolidated statements of operations. The Company files U.S. federal and certain state income tax returns. The income tax returns of the Company are subject to examination by U.S. federal and state taxing authorities for various time periods, depending on those jurisdictions' rules, generally after the income tax returns are filed.
Net Income (Loss) Per Share	Net Income (Loss) Per Share The two-class method of computing net income (loss) per share is required for entities that have participating securities. The two-class method is an earnings allocation formula that determines net income (loss) per share for participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The Company's Class B Stock has no economic interest in the earnings of the Company, resulting in the two-class method not being applicable as of March 31, 2020 or in prior periods. Basic net income (loss) per common share is calculated by dividing net loss attributable to common shareholders by the weighted average number of shares of Class A Stock outstanding each period. Diluted net income (loss) per share adds to those shares the incremental shares that would have been outstanding and potentially dilutive assuming exchanges of the Company's outstanding warrants, stock options and Class B Stock for Class A Stock, and the vesting of unvested and restricted Class A Stock. An anti-dilutive impact is an increase in net income per share or a reduction in net loss per share resulting from the conversion, exercise or contingent issuance of certain securities. The Company uses the "if-converted" method to determine the potential dilutive effect of conversions of its outstanding Class B Stock, and the treasury stock method to determine the potential dilutive effect of its outstanding warrants and stock options exercisable for shares of Class A Stock and the vesting of unvested and restricted Class A Stock.
Recent Accounting Pronouncements	Recent Accounting Pronouncements New Lease Guidance In February 2016, the FASB issued ASU No. 2016-02, "Leases," and in March 2019, the FASB issued ASU No. 2019-01, "Leases: Codification Improvements", which updated the accounting guidance related to leases to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. They also clarify implementation issues. These updates are effective for public companies for annual periods beginning after December 15, 2018, including interim periods therein. The Company is allowed to use the private company adoption timelines, and therefore the standard is effective for the Company for its annual period beginning January 1, 2020, and interim periods within annual periods beginning January 1, 2021. The standard is to be applied utilizing a modified retrospective approach, with early adoption permitted. We are in the process of implementing a new lease accounting system in connection with the adoption. While we expect a material impact to our consolidated balance sheet as a result of the adoption of this new guidance, we continue to evaluate the effect of the new standard on our consolidated financial statements and related disclosures. We also expect that adoption of the new guidance will require changes to our internal controls over financial reporting. Simplifying the Accounting for Income Taxes In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (ASU No. 2019-12). The new guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. The guidance is effective for fiscal years beginning after December 15, 2020 and for interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact of adopting ASU 2019-12. New Internal-Use Software Guidance In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350) ("ASU 2018-15"). The objective of ASU 2018-15 is to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those incurred to develop or obtain internal-use software. The guidance is effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The amendments can be applied either retrospectively or prospectively. We do not expect the adoption of this standard to have a material impact on its consolidated financial statements.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of revenue disaggregated by sales channel and product	Three Months Ended Channel 2020 2019 Direct-to-consumer $ 80,687 $ 53,764 Wholesale partner 41,688 29,884 Revenues, net $ 122,375 $ 83,648 Three Months Ended Product 2020 2019 Bedding $ 114,501 $ 81,335 Other 7,874 2,313 Revenues, net $ 122,375 $ 83,648

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Schedule of inventories	March 31, December 31, 2020 2019 Raw materials $ 18,939 $ 16,220 Work-in-process 1,610 2,713 Finished goods 22,455 29,485 Inventory obsolescence reserve (892 ) (790 ) Inventories, net $ 42,112 $ 47,628

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	March 31, December 31, 2020 2019 Equipment $ 20,809 $ 19,761 Equipment in progress 8,152 5,278 Leasehold improvements 7,662 7,040 Furniture and fixtures 4,653 4,252 Office equipment 1,853 1,523 Equipment under capital lease 662 662 Total property and equipment 43,791 38,516 Accumulated depreciation and amortization (7,699 ) (6,537 ) Property and equipment, net $ 36,092 $ 31,979

Other Current Liabilities (Tabl

Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Other Liabilities Disclosure [Abstract]
Schedule of other current liabilities	March 31, December 31, 2020 2019 Co-op advertising, rebates, promotions $ 3,139 $ 5,311 Warranty accrual – current portion 2,419 1,567 Website commissions 1,072 897 Tax Receivable Agreement liability 845 501 Insurance financing 830 350 All other current liabilities 953 914 Total other current liabilities $ 9,258 $ 9,540

Long-Term Debt, Related-Party (

Long-Term Debt, Related-Party (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of long-term debt, related-party	March 31, December 31, 2020 2019 Long-term debt, related-party $ 40,391 $ 39,202 Less: unamortized debt issuance costs and discounts (3,617 ) (3,803 ) Total long-term debt, related-party $ 36,774 $ 35,399

Warrant Liabilities (Tables)

Warrant Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Warrant Liabilities [Abstract]
Schedule of fair value of the incremental loan warrants	March 31, December 31, 2020 2019 Trading price of common stock on measurement date $ 5.68 $ 8.71 Exercise price $ 5.74 $ 5.74 Risk free interest rate 0.37 % 1.69 % Warrant life in years 3.9 4.2 Expected volatility 44.16 % 36.82 % Expected dividend yield — — Probability of an event causing a warrant re-price 50.00 % 95.00 %

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	3 Months Ended
	Mar. 31, 2020
Other Long-Term Liabilities [Abstract]
Schedule of other long-term liabilities	March 31, December 31, 2020 2019 Deferred rent expense $ 5,954 $ 5,115 Warranty accrual 6,104 4,621 Capital leases 485 488 Total other long-term liabilities 12,543 10,224 Less: current portion of long-term liabilities (2,710 ) (1,654 ) Other long-term liabilities, net of current portion $ 9,833 $ 8,570

Net Income (Loss) Per Common _2

Net Income (Loss) Per Common Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Schedule of basic and diluted weighted average shares outstanding and earnings per share	Three Months Ended 2020 2019 Net income (loss) (numerator): Net income (loss) attributable to Purple Innovation, Inc.-basic $ 8,835 $ (130 ) Less: dilutive effect of change in fair value liabilities (5,958 ) — Net income (loss) attributable to Purple Innovation, Inc.-diluted $ 2,877 $ (130 ) Weighted average shares (denominator): Weighted average shares—basic 22,675 8,437 Add: dilutive effects of equity awards 1,390 — Add: dilutive effects of incremental warrants 1,262 — Weighted average shares—diluted 25,327 8,437 Net income (loss) per common share: Basic $ 0.39 $ (0.02 ) Diluted $ 0.11 $ (0.02 )

Equity Compensation Plans (Tabl

Equity Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of fair market value using Black-Scholes method	Fair market value $ 8.02 Exercise price $ 12.76 Risk free interest rate 0.61 % Expected term in years 3.56 Expected volatility 38.28 % Expected dividend yield —
Schedule of total stock option activity	Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Intrinsic Value $ As of March 31, 2020: Options outstanding as of January 1, 2020 2,136 $ 6.95 4.3 $ — Granted 25 12.76 — — Exercised — — — — Forfeited/cancelled (20 ) 6.51 — — Options outstanding as of March 31, 2020 2,141 $ 7.03 4.1 $ —
schedule of outstanding and exercisable stock options	Options Outstanding Options Exercisable Exercise Prices Number of Options Outstanding Weighted (Years) Number of Options Exercisable Weighted Intrinsic Value $ 5.75 250 3.89 68 $ 3.89 $ — 5.95 538 3.50 191 3.50 — 6.51 338 4.14 85 4.14 — 6.65 200 4.11 — — — 8.07 8 4.41 — — — 8.17 325 4.50 81 4.50 8.32 250 4.25 — — — 12.76 25 4.95 — — —
Schedule non-cash stock compensation	(in thousands) Three Months Ended Non-Cash Stock Compensation 2020 2019 Cost of revenues $ 35 $ — Marketing and sales 60 — General and administrative 151 73 Research and development 4 — Total non-cash stock compensation $ 250 $ 73

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies (Textual)
Business combination, description	Pursuant to the Business Combination described in Note 3—Business Combination, Purple Inc. acquired approximately 18% of the common units of Purple LLC, while InnoHold, LLC ("InnoHold") retained approximately 82% of the common units in Purple LLC. As of March 31, 2020, Purple Inc. held approximately 44% of the common units of Purple LLC and InnoHold and other Purple LLC Class B Unit holders held approximately 56% of the common units in Purple LLC.
Variable interest entity, description	Purple Inc. had approximately a 44% economic interest in Purple LLC and consolidated 100% of Purple LLC's assets, liabilities and results of operations in the Company's unaudited condensed consolidated financial statements contained herein. At March 31, 2020, InnoHold and other parties owned approximately 56% of the economic interest in Purple LLC; however, InnoHold and other parties have disproportionally fewer voting rights, and are shown as the noncontrolling interest ("NCI") holder of Purple LLC. For further discussion see Note 13 — Stockholders' Equity.
Income tax benefit, description	The amount of the tax benefit recognized is the largest amount of the benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.
Temporarily furloughing rate	35.00%
Temporarily deferred cash compensation, description	The Company has temporarily deferred 25% of the cash compensation of Senior Executives and all the cash compensation of the Board of Directors. In addition, in March 2020 we entered into an amendment to our Amended and Restated Credit Agreement to allow the Company to defer 5% of the interest for quarterly payments due during the first two quarters of 2020.

Business Combination (Details)

Business Combination (Details) shares in Thousands	Feb. 02, 2018shares
Class A Common Stock [Member]
Merger Transaction (Textual)
Number of shares issued to stockholders	9,700
Class B Common Stock [Member]
Merger Transaction (Textual)
Number of shares issued to stockholders	44,100
Shares distribution, Description	They are voting common units entitled to share in the profits and losses of Purple LLC and receive distributions as declared by Purple LLC's manager. 44.1 million Class B Units of Purple LLC were issued to InnoHold who has limited voting rights in Purple LLC and is entitled to share in the profits and losses of Purple LLC and to receive distributions as declared by Purple LLC's manager

Revenue from Contracts with C_3

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Channel
Revenues, net	$ 122,375	$ 83,648
Channel [Member]
Channel
Revenues, net	122,375	83,648
Channel [Member] | Direct-to-consumer [Member]
Channel
Revenues, net	80,687	53,764
Channel [Member] | Wholesale partner [Member]
Channel
Revenues, net	41,688	29,884
Product [Member]
Channel
Revenues, net	122,375	83,648
Product [Member] | Bedding [Member]
Channel
Revenues, net	114,501	81,335
Product [Member] | Other [Member]
Channel
Revenues, net	$ 7,874	$ 2,313

Revenue from Contracts with C_4

Revenue from Contracts with Customers (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contracts with Customers (Textual)
Customer prepayments	$ 3,538	$ 6,258
Deferred in customer prepayments	$ 6,300

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 18,939	$ 16,220
Work-in-process	1,610	2,713
Finished goods	22,455	29,485
Inventory obsolescence reserve	(892)	(790)
Inventories, net	$ 42,112	$ 47,628

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Equipment	$ 20,809	$ 19,761
Equipment in progress	8,152	5,278
Leasehold improvements	7,662	7,040
Furniture and fixtures	4,653	4,252
Office equipment	1,853	1,523
Equipment under capital lease	662	662
Total property and equipment	43,791	38,516
Accumulated depreciation and amortization	(7,699)	(6,537)
Property and equipment, net	$ 36,092	$ 31,979

Property and Equipment (Detai_2

Property and Equipment (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property and Equipment (Textual)
Depreciation and amortization	$ 1,200	$ 700

Other Current Liabilities (Deta

Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Liabilities Disclosure [Abstract]
Co-op advertising, rebates, promotions	$ 3,139	$ 5,311
Warranty accrual - current portion	2,419	1,567
Website commissions	1,072	897
Tax Receivable Agreement liability	845	501
Insurance financing	830	350
All other current liabilities	953	914
Total other current liabilities	$ 9,258	$ 9,540

Long-Term Debt, Related-Party_2

Long-Term Debt, Related-Party (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Long-term debt, related-party	$ 40,391	$ 39,202
Less: unamortized debt issuance costs and discounts	(3,617)	(3,803)
Total long-term debt, related-party	$ 36,774	$ 35,399

Long-Term Debt, Related-Party_3

Long-Term Debt, Related-Party (Details Textual) - USD ($) shares in Thousands, $ in Thousands	Feb. 02, 2018	Jan. 28, 2019	Feb. 28, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018
Long-Term Debt, Related-Party (Textual)
Principal indebtedness		$ 35,000
Principal amount	$ 25,000
Debt of business combination				$ 500
Amended and restated credit agreement, description		Purple LLC entered into a First Amendment to the Credit Agreement (the "First Amendment") with the Lenders. In the First Amendment, Purple LLC agreed to enter into the Amended and Restated Credit Agreement, under which two of the Lenders ("Incremental Lenders") agreed to provide an incremental loan of $10.0 million such that the total amount of principal indebtedness provided to Purple LLC is increased to $35.0 million. A stockholder meeting was held on February 25, 2019 at which time a majority of non-interested stockholders voted in favor of this transaction. The Amended and Restated Credit Agreement, and each of the related documents, was accordingly closed, and the incremental $10.0 million loan was funded on February 26, 2019, and the Company issued to the Incremental Lenders 2.6 million warrants to purchase 2.6 million shares of the Company's Class A Stock at a price of $5.74 per share, subject to certain adjustments. Among other things, the terms of the Amended and Restated Credit Agreement extends the maturity date for all loans under the Credit Agreement to five years from closing of the incremental loan, lowers the amount allowed for an asset-based loan to $10.0 million, revises certain restrictive covenants to make them more applicable to the Company's current business, provides the ability for the Company to request additional loans from the Lenders not to exceed $10 million and other closing conditions, representations, warranties and covenants customary for a transaction of this type. All indebtedness under the Amended and Restated Credit Agreement bears interest at 12.0% per annum and is payable on the last business day of each fiscal quarter, provided that Purple LLC will be required to pay up to an additional 4.0% of interest per annum if it fails to meet certain EBITDA thresholds and an additional 2.0% of interest per annum if the Company is not in material compliance with the Sarbanes-Oxley Act of 2002. In addition, Purple LLC may elect for interest in excess of 5.0% per annum to be capitalized and added to the principal amount. Any principal pre-payments in the first year are subject to a make-whole payment, while principal pre-payments in years two through four are subject to certain pre-payment penalties. The Amended and Restated Credit Agreement provided for certain remedies to the Lenders in the event of customary events of default and provides for standard indemnification of the Lenders. Purple LLC continues to be restricted from making annual capital expenditures in excess of $20.0 million and incurring capital lease obligations in excess of $10.0 million at any time outstanding, subject to limited exceptions. As of March 31, 2020, the Company was in compliance with all of the covenants in the Amended and Restated Credit Agreement.
Debt issuance costs				300
Interest expense related to the amended and restated credit agreement				1,200	$ 1,000
Loss on extinguishment debt					(6,299)
Fair value of warrants				8,000	21,600
Paid-in-kind interest				1,200	$ 600
Paid in cash				400
Class A Common Stock
Long-Term Debt, Related-Party (Textual)
Aggregate of shares assign to the Lenders	1,300		4,000			1,300
Warrant [Member]
Long-Term Debt, Related-Party (Textual)
Fair value of warrants				13,600
Aggregate of shares assign to the Lenders	2,500
Amended and Restated Credit Agreement [Member]
Long-Term Debt, Related-Party (Textual)
Loss on extinguishment debt				2,600
Fair value of warrants				$ 4,900

Warrant Liabilities (Details)

Warrant Liabilities (Details) - Warranty [Member] - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Trading price of common stock on measurement date	$ 5.68	$ 8.71
Exercise price	$ 5.74	$ 5.74
Risk free interest rate	0.37%	1.69%
Warrant life in years	3 years 10 months 25 days	4 years 2 months 12 days
Expected volatility	44.16%	36.82%
Expected dividend yield
Probability of an event causing a warrant re-price	50.00%	95.00%

Warrant Liabilities (Details Te

Warrant Liabilities (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Warrant Liabilities (Textual)
Fair value of the incremental loan warrants	$ 8,000	$ 21,600
Warrants [Member]
Warrant Liabilities (Textual)
Fair value of the incremental loan warrants	$ 13,600
Amended and restated credit agreement, description	In addition, upon the occurrence of any of the following events: (1) a fundamental transaction; (2) acquisition of 25% or more of the total voting power of all the securities of the entity by any one person or group of affiliated persons or entities; (3) Tony Pearce or Terry Pearce individually or together ceasing to beneficially own at least 50% of the voting securities of the Company; or (4) the Board of Directors ceasing to be comprised of a majority of independent directors as defined under NASDAQ rules, the exercise price of the warrant will be reduced by a value based upon a formula model established in the agreement. The formula model is a Black Scholes valuation model which would use the following inputs: (1) share price would be the greater of the volume weighted average price ("VWAP") of the common stock for the prior 30 days before the applicable event date or the VWAP of the trading day immediately preceding the event date; (2) exercise price of $5.74, unless previously adjusted under other terms of the warrant; (3) volatility would be the greater of 100% and the historical volatility of the Company's common stock for the ninety days preceding the date of the triggering event; and (4) the assumed risk-free interest rate shall correspond to the US Treasury rate for a period equal to the remaining term of this warrant.

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Other Long-Term Liabilities [Abstract]
Deferred rent expense	$ 5,954	$ 5,115
Warranty accrual	6,104	4,621
Capital leases	485	488
Total other long-term liabilities	12,543	10,224
Less: current portion of long-term liabilities	(12,543)	(1,654)
Other long-term liabilities, net of current portion	$ 9,833	$ 8,570

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Mar. 10, 2020	Nov. 08, 2019	Sep. 09, 2019	Feb. 02, 2018	Jan. 09, 2018	Feb. 28, 2018	Oct. 31, 2017	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018
Commitments and Contingencies (Textual)
Required member distributions, percentage								45.00%
Service agreement, description							The Company entered into an electric service agreement with the local power company. The agreement provided for the construction and installation of certain utility improvements to provide increased power capacity to the manufacturing and warehouse facility in Grantsville, Utah. The Company prepaid $0.5 million related to the improvements and agreed to a minimum contract billing amount over a 15-year period based on regulated rate schedules and changes in actual demand during the billing period. The agreement includes an early termination clause that requires the Company to pay a pro-rata termination charge if the Company terminates within the first 10 years of the service start date. The original early termination charge was $1.3 million and is reduced annually on a straight-line basis over the 10-year period.
Deferred rent included in long term liabilities								$ 6,000	$ 2,600
Recognized rent expense								$ 1,300	$ 900
Indemnification obligations, description								The Closing, to secure the payment of a certain portion of specified post-closing indemnification rights of the Company under the Merger Agreement, 0.5 million shares of Class B Stock and 0.5 million Class B Units otherwise issuable to InnoHold as equity consideration have been deposited in an escrow account for up to three years from the Closing pursuant to a contingency escrow agreement.
Purchase agreement, description						The Company entered into a purchase contract with a supplier of mineral oil that includes a minimum purchase commitment over a two-year period.
Non-cancellable operating leases, description								The lease was originally entered into in 2010, but in October 2017 was amended with a lease term of 10 years that expires in September 2027 with an early-out clause without penalties after 5 years and includes an option for a 5-year extension. The Company leases a facility located in Grantsville, Utah for use primarily as manufacturing and warehouse space. The lease was entered into in August 2016 with a lease term of 66 months and expires in January 2022 with two 5-year extension options. The Company also leases another facility in Grantsville, Utah for use as temporary warehouse space. The lease was entered into in May 2019 with a lease term of 4 months which expired in August 2019 with a holdover option on a month to month basis. In June 2019, the Company entered into a lease for the Company factory outlet in Salt Lake City, Utah with a lease term of 36 months and one 5-year extension option.
Purchase contract								$ 12,400
Escrow deposits, description								In connection with the Closing, to secure the payment of a certain portion of specified post-closing indemnification rights of the Company under the Merger Agreement, 0.5 million shares of Class B Stock and 0.5 million Class B Units otherwise issuable to InnoHold as equity consideration have been deposited in an escrow account for up to three years from the Closing pursuant to a contingency escrow agreement. As of March 31, 2020, 0.5 million shares of Class B Stock and 0.5 million Class B Units otherwise issuable to InnoHold as equity consideration remain deposited in an escrow account and no indemnification claims have been made.
Tax distribution liability								$ 81
Termination penalty								1,000
Other long-term liability								5,000
Accrued distributions								339
Mr. Knudsen [Member]
Commitments and Contingencies (Textual)
Legal proceedings, description					Mr. Knudsen alleges that before his consulting contract ended in March 2016, he and Purple LLC reached an oral agreement under which Mr. Knudsen would become the company's chief executive officer on April 1, 2016, and under which Mr. Knudsen would immediately receive a 4% equity interest in Purple LLC. Mr. Knudsen alleges that Purple LLC's failure to convey to him a 4% equity interest in the company constitutes a breach of that oral agreement, and Mr. Knudsen claims damages of $10.75 million, based on his calculation of the value of a 4% interest in Purple LLC. In the alternative, Mr. Knudsen seeks declaratory relief that he owns the 4% equity position in Purple LLC. Purple LLC denies that it reached an agreement with Mr. Knudsen for him to assume the role of chief executive officer.
Purple LLC [Member]
Commitments and Contingencies (Textual)
PerfectSense's costs, description			After filing the statement of claim, Purple LLC posted $15,000 CAD as security for PerfectSense's costs.  PerfectSense recently brought a motion to strike that was resolved on consent.
Class A Common Stock
Commitments and Contingencies (Textual)
Amount of previously paired securities								$ 1,100
Purchase shares				1,300		4,000				1,300
Purchase price						$ 10
Subscription agreement, description						The Sponsor assigned (i) an aggregate of 1.3 million additional shares of Class A Stock to CCP and Blackwell and (ii) an aggregate of 3.3 million warrants to purchase 1.6  million shares of Class A Stock to CCP, Blackwell, and CDF. The subscription agreement provides CCP and Blackwell with preemptive rights with respect to future sales of the Company's securities. It also provides them with a right of first refusal with respect to certain debt and preferred equity financings by the Company. The Company also entered into a registration rights agreement with CCP, Blackwell, and CDF, providing for the registration of the shares of Class A Stock issued and assigned to CCP and Blackwell in the Coliseum Private Placement, as well as the shares of Class A Stock underlying the warrants received by CCP, Blackwell and CDF. The Company has filed a registration statement with respect to such securities.
Number of shares sold	18,000	11,500

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Feb. 02, 2018	Jan. 28, 2019	Feb. 28, 2018	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018	Dec. 31, 2019
Related Party Transactions (Textual)
Amended and restated credit agreement, description		Purple LLC entered into a First Amendment to the Credit Agreement (the "First Amendment") with the Lenders. In the First Amendment, Purple LLC agreed to enter into the Amended and Restated Credit Agreement, under which two of the Lenders ("Incremental Lenders") agreed to provide an incremental loan of $10.0 million such that the total amount of principal indebtedness provided to Purple LLC is increased to $35.0 million. A stockholder meeting was held on February 25, 2019 at which time a majority of non-interested stockholders voted in favor of this transaction. The Amended and Restated Credit Agreement, and each of the related documents, was accordingly closed, and the incremental $10.0 million loan was funded on February 26, 2019, and the Company issued to the Incremental Lenders 2.6 million warrants to purchase 2.6 million shares of the Company's Class A Stock at a price of $5.74 per share, subject to certain adjustments. Among other things, the terms of the Amended and Restated Credit Agreement extends the maturity date for all loans under the Credit Agreement to five years from closing of the incremental loan, lowers the amount allowed for an asset-based loan to $10.0 million, revises certain restrictive covenants to make them more applicable to the Company's current business, provides the ability for the Company to request additional loans from the Lenders not to exceed $10 million and other closing conditions, representations, warranties and covenants customary for a transaction of this type. All indebtedness under the Amended and Restated Credit Agreement bears interest at 12.0% per annum and is payable on the last business day of each fiscal quarter, provided that Purple LLC will be required to pay up to an additional 4.0% of interest per annum if it fails to meet certain EBITDA thresholds and an additional 2.0% of interest per annum if the Company is not in material compliance with the Sarbanes-Oxley Act of 2002. In addition, Purple LLC may elect for interest in excess of 5.0% per annum to be capitalized and added to the principal amount. Any principal pre-payments in the first year are subject to a make-whole payment, while principal pre-payments in years two through four are subject to certain pre-payment penalties. The Amended and Restated Credit Agreement provided for certain remedies to the Lenders in the event of customary events of default and provides for standard indemnification of the Lenders. Purple LLC continues to be restricted from making annual capital expenditures in excess of $20.0 million and incurring capital lease obligations in excess of $10.0 million at any time outstanding, subject to limited exceptions. As of March 31, 2020, the Company was in compliance with all of the covenants in the Amended and Restated Credit Agreement.
Conversion of securities
Lenders [Member]
Related Party Transactions (Textual)
Borrowings outstanding				40,400
Original loan amount				35,000
Capitalized interest				5,400
Interest payments to the Lenders					$ 400
Lenders [Member] | Credit Agreement [Member]
Related Party Transactions (Textual)
Original loan amount						$ 25,000	$ 10,000
InnoHold [Member]
Related Party Transactions (Textual)
Conversion of securities				1,100
TNT [Member]
Related Party Transactions (Textual)
Rent expense				$ 200	$ 300
Coliseum Capital Management LLC [Member]
Related Party Transactions (Textual)
Amended and restated credit agreement, description				The Amended and Restated Credit Agreement, CCP and Blackwell were granted 2.6 million warrants to purchase 2.6 million shares of the Company's Class A Stock at a price of $5.74 per share, subject to certain adjustments.
Class A Common Stock
Related Party Transactions (Textual)
Conversion of securities
Purchase shares	1,300		4,000			1,300
Purchase price			$ 10
Subscription agreement, description			The Sponsor assigned (i) an aggregate of 1.3 million additional shares of Class A Stock to CCP and Blackwell and (ii) an aggregate of 3.3 million warrants to purchase 1.6  million shares of Class A Stock to CCP, Blackwell, and CDF. The subscription agreement provides CCP and Blackwell with preemptive rights with respect to future sales of the Company's securities. It also provides them with a right of first refusal with respect to certain debt and preferred equity financings by the Company. The Company also entered into a registration rights agreement with CCP, Blackwell, and CDF, providing for the registration of the shares of Class A Stock issued and assigned to CCP and Blackwell in the Coliseum Private Placement, as well as the shares of Class A Stock underlying the warrants received by CCP, Blackwell and CDF. The Company has filed a registration statement with respect to such securities.
Warranty [Member]
Related Party Transactions (Textual)
Purchase shares						2,500

Stockholders' Equity (Details)

Stockholders' Equity (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Feb. 02, 2018
Stockholders' Equity (Textual)
Common stocks, description	The shares of Class A Stock subject to vesting will be forfeited eight years from the Closing, unless any of the following events (each a "Triggering Event") occurs prior to that time:(i) the closing price of the Class A Stock on the principal exchange on which it is listed is at or above $12.50 for 20 trading days over a thirty trading day period (subject to certain adjustments), (ii) a change of control of the Company, (iii) a "going private" transaction by the Company pursuant to Rule 13e-3 under the Exchange Act or such other time as the Company ceases to be subject to the reporting obligations under Section 13 or 15(d) of the Exchange Act, or (iv) the time that the Company's Class A Stock ceases to be listed on a national securities exchange.
Preferred stock authorized	5,000
Preferred stock par value	$ 0.0001
Warrants transaction expire date	Feb. 2, 2023
Purple LLC [Member]
Stockholders' Equity (Textual)
Percentage of noncontrolling interest	56.00%		82.00%
Public and Sponsor Warrants [Member]
Stockholders' Equity (Textual)
Warrants term	5 years
Class A Common Stock
Stockholders' Equity (Textual)
Warrants expiration date, description	The Company may call the warrants for redemption if the reported last sale price of the Class A Stock equals or exceeds $24.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders.
Warrants outstanding	28,300
Common stock authorized	210,000	210,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock issued	23,622	22,494
Common stock, shares outstanding	23,622	22,494
Common stocks, description	Triggering Event occurred as the closing price of the Class A Stock on the principal exchange on which it is listed was at or above $12.50 for 20 trading days over a thirty trading day period. Accordingly, the shares of Class A Stock are no longer subject to vesting or forfeiture.
Warrants issued	15,500
Shares issued	1,300
Purchase warrants, shares	2,600
Class B Common Stock [Member]
Stockholders' Equity (Textual)
Common stock authorized	90,000	90,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock issued	30,270	31,394
Common stock, shares outstanding	30,270	31,394
GPAC [Member]
Stockholders' Equity (Textual)
Warrants outstanding	28,300
InnoHold [Member] | Class B Common Stock [Member]
Stockholders' Equity (Textual)
Common stock, shares outstanding	30,300
InnoHold [Member] | Series B Stock [Member]
Stockholders' Equity (Textual)
Shares issued	44,100
Incremental Loan Warrants [Member]
Stockholders' Equity (Textual)
Warrants to purchase of common stock price per share	$ 5.74
Warrants expiration date, description	The Incremental Loan Warrants have a five-year term and will expire on February 26, 2024, or earlier upon redemption or liquidation.
Warrants issued	2,600
Warrants, description	The Company may call the warrants for redemption at a price of $0.01 per Share of Class A Stock if the reported last sale price of the Class A Stock equals or exceeds $24.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the warrant holders. If the Company calls the Incremental Loan Warrants for redemption, it will have the option to require the holder to exercise the Incremental Loan Warrants on a cashless basis, by surrendering their Incremental Loan Warrants for that number of shares of Class A Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Stock underlying the Incremental Loan Warrants, multiplied by the difference between the exercise price of the Sponsor Warrants and the "fair market value" (defined below), by (y) the fair market value. The "fair market value" means the average reported last sale price of the Class A Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of Incremental Loan Warrants.
Sponsor Warrants [Member]
Stockholders' Equity (Textual)
Warrants issued	12,800
Warrants, description	Each of the Company’s warrants entitles the registered holder to purchase one-half of one share of the Company’s Class A Stock at a price of $5.75 per half share ($11.50 per full share), subject to adjustment pursuant to the terms of the warrant agreement.

Income Taxes (Details)

Income Taxes (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Income Taxes (Textual)
Tax receivable agreement, description	The estimation of liability under the Tax Receivable Agreement is by its nature imprecise and subject to significant assumptions regarding the amount and timing of future taxable income. As a result of 13.7 million life to date exchanges of Class B Units for Class A Stock, the potential future TRA Liability is $37.5 million, which has not been recorded due to the valuation allowance on the deferred tax assets, with the exception of $0.8 million as the Company has realized cash tax benefits under the Tax Receivable Agreement.
Tax receivable agreement, percentage	80.00%
U.S. federal corporate tax rate, description	The Company currently estimates its annual effective income tax rate to be 1.0%. The effective tax rate for the Company differs from the federal rate of 21% primarily due to (1) a full valuation allowance, (2) NCI in Purple LLC that is allocated to InnoHold and (3) various other items such as limitations on meals and entertainment, certain stock compensation and other costs.
Income tax benefit	$ 300
InnoHold [Member]
Income Taxes (Textual)
Tax receivable agreement, description	The Closing as a result of (i) any tax basis increases in the assets of Purple LLC resulting from the distribution to InnoHold of the cash consideration, (ii) the tax basis increases in the assets of Purple LLC resulting from the redemption by Purple LLC or the exchange by the Company, as applicable, of Class B Paired Securities or cash, as applicable, and (iii) imputed interest deemed to be paid by the Company as a result of, and additional tax basis arising from, payments it makes under the Tax Receivable Agreement.
Tax receivable agreement, percentage	80.00%
CARES Act [Member]
Income Taxes (Textual)
Adjusted taxable income, description	The COVID-19 pandemic, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law in March 2020. The CARES Act lifts certain deduction limitations originally imposed by the Tax Cuts and Jobs Act of 2017 (2017 Tax Act). Corporate taxpayers may carryback net operating losses (NOLs) originating during 2018 through 2020 for up to five years, which was not previously allowed under the 2017 Tax Act. The CARES Act also eliminates the 80% of taxable income limitations by allowing corporate entities to fully utilize NOL carryforwards to offset taxable income in 2018, 2019 or 2020. Taxpayers may generally deduct interest up to the sum of 50% of adjusted taxable income plus business interest income (30% limit under the 2017 Tax Act) for tax years beginning January 1, 2019 and 2020. The CARES Act allows taxpayers with alternative minimum tax credits to claim a refund in 2020 for the entire amount of the credits instead of recovering the credits through refunds over a period of years, as originally enacted by the 2017 Tax Act.
Corporate charitable deduction, description	In addition, the CARES Act raises the corporate charitable deduction limit to 25% of taxable income and makes qualified improvement property generally eligible for 15-year cost-recovery and 100% bonus depreciation. The enactment of the CARES Act resulted in two adjustments to our income tax provision for the three months ended March 31, 2020, relating to increased 2019 NOL utilization and tax benefits from NOL carrybacks. We have recorded a discrete benefit of $0.5 million in our income tax provision for the three months ended March 31, 2020 related to the CARES Act.

Net Income (Loss) Per Common _3

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net income (loss) attributable to Purple Innovation, Inc.-basic	$ 8,835	$ (130)
Less: dilutive effect of change in fair value liabilities	(5,958)
Net income (loss) attributable to Purple Innovation, Inc.-diluted	$ 2,877	$ (130)
Weighted average shares-basic	22,675	8,437
Add: dilutive effects of equity awards	1,390
Add: dilutive effects of incremental warrants	1,262
Weighted average shares-diluted	25,327	8,437
Net income (loss) per common share:
Basic	$ 0.39	$ (0.02)
Diluted	$ 0.11	$ (0.02)

Net Income (Loss) Per Common _4

Net Income (Loss) Per Common Share (Details Textual) - Class A Common Stock - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Excluded shares of issued common stock subject to vesting	100	1,300
Shares of common stock issuable upon conversion of warrants	14,200	17,700
Common stock issuable upon conversion	31,300	44,100

Equity Compensation Plans (Deta

Equity Compensation Plans (Details)	3 Months Ended
	Mar. 31, 2020USD ($)$ / shares
Share-based Payment Arrangement [Abstract]
Fair market value	$ 8.02
Exercise price	$ 12.76
Risk free interest rate	0.61%
Expected term in years	3 years 6 months 21 days
Expected volatility	38.28%
Expected dividend yield | $

Equity Compensation Plans (De_2

Equity Compensation Plans (Details 1) shares in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Share-based Payment Arrangement [Abstract]
Options outstanding as of January 1, 2020 | shares	2,136
Options, Granted | shares	25
Options, Exercised | shares
Options, Forfeited/cancelled | shares	(20)
Options outstanding as of March 31, 2020 | shares	2,141
Weighted Average Exercise Price, outstanding as of January 1, 2020 | $ / shares	$ 6.95
Weighted Average Exercise Price, Granted | $ / shares	12.76
Weighted Average Exercise Price, Exercised | $ / shares
Weighted Average Exercise Price, Forfeited/cancelled | $ / shares	6.51
Weighted Average Exercise Price, outstanding as of March 31, 2020 | $ / shares	$ 7.03
Weighted Average Remaining Contractual Term in Years, outstanding as of January 1, 2020	4 years 3 months 19 days
Weighted Average Remaining Contractual Term in Years, outstanding as of March 31, 2020	4 years 1 month 6 days
Intrinsic Value, outstanding as of January 1, 2020 | $
Intrinsic Value, Granted | $
Intrinsic Value, Exercised | $
Intrinsic Value, Forfeited/cancelled | $
Intrinsic Value, outstanding as of March 31, 2020 | $

Equity Compensation Plans (De_3

Equity Compensation Plans (Details 2) shares in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / sharesshares
Options Outstanding Weighted Average Remaining Life (Years)	4 years 3 months 19 days
5.75 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 5.75
Options Outstanding Number of Options Outstanding	250
Options Outstanding Weighted Average Remaining Life (Years)	3 years 10 months 21 days
Options Exercisable, Number of Options Exercisable	68
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 10 months 21 days
Options Exercisable, Intrinsic Value | $
5.95 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 5.95
Options Outstanding Number of Options Outstanding	538
Options Outstanding Weighted Average Remaining Life (Years)	3 years 6 months
Options Exercisable, Number of Options Exercisable	191
Options Exercisable, Weighted Average Remaining Life (Years)	3 years 6 months
Options Exercisable, Intrinsic Value | $
6.51 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 6.51
Options Outstanding Number of Options Outstanding	338
Options Outstanding Weighted Average Remaining Life (Years)	4 years 1 month 20 days
Options Exercisable, Number of Options Exercisable	85
Options Exercisable, Weighted Average Remaining Life (Years)	4 years 1 month 20 days
Options Exercisable, Intrinsic Value | $
6.65 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 6.65
Options Outstanding Number of Options Outstanding	200
Options Outstanding Weighted Average Remaining Life (Years)	4 years 1 month 9 days
Options Exercisable, Number of Options Exercisable
Options Exercisable, Weighted Average Remaining Life (Years)	0 years
Options Exercisable, Intrinsic Value | $
8.07 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 8.07
Options Outstanding Number of Options Outstanding	8
Options Outstanding Weighted Average Remaining Life (Years)	4 years 4 months 28 days
Options Exercisable, Number of Options Exercisable
Options Exercisable, Weighted Average Remaining Life (Years)	0 years
Options Exercisable, Intrinsic Value | $
8.17 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 8.17
Options Outstanding Number of Options Outstanding	325
Options Outstanding Weighted Average Remaining Life (Years)	4 years 6 months
Options Exercisable, Number of Options Exercisable	81
Options Exercisable, Weighted Average Remaining Life (Years)	4 years 6 months
Options Exercisable, Intrinsic Value | $
8.32 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 8.32
Options Outstanding Number of Options Outstanding	250
Options Outstanding Weighted Average Remaining Life (Years)	4 years 2 months 30 days
Options Exercisable, Number of Options Exercisable
Options Exercisable, Weighted Average Remaining Life (Years)	0 years
Options Exercisable, Intrinsic Value | $
12.76 [Member]
Options Outstanding, Exercise Prices | $ / shares	$ 12.76
Options Outstanding Number of Options Outstanding	25
Options Outstanding Weighted Average Remaining Life (Years)	4 years 11 months 12 days
Options Exercisable, Number of Options Exercisable
Options Exercisable, Weighted Average Remaining Life (Years)	0 years
Options Exercisable, Intrinsic Value | $

Equity Compensation Plans (De_4

Equity Compensation Plans (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Total non-cash stock compensation	$ 250	$ 73
Cost of revenues [Member]
Total non-cash stock compensation	35
Marketing and sales [Member]
Total non-cash stock compensation	60
General and administrative [Member]
Total non-cash stock compensation	151	73
Research and development [Member]
Total non-cash stock compensation	$ 4

Equity Compensation Plans (De_5

Equity Compensation Plans (Details Textual) - USD ($) shares in Thousands, $ in Thousands	Feb. 08, 2019	Jan. 31, 2017	Mar. 31, 2020	Mar. 31, 2019
Equity Compensation Plans (Textual)
Aggregate shares of common stock, granted
Tender offer, description			At the closing of the tender offer, those incentive unit holders received, based on their pro rata holdings of InnoHold Class B Units, a portion of 2.5 million Paired Securities held by InnoHold. As of March 31, 2020, 1.1 million of the Paired Securities remain to be exchanged for Class A Stock by the incentive unit holders. A small number of Paired Securities remain subject to vesting contingent upon such current employees' continued employment with the Company.
Unrecognized compensation cost			$ 400	$ 300
Paired securities held by InnoHold	2,500
Employee Stock Option [Member]
Equity Compensation Plans (Textual)
Stock-based compensation expense			200	$ 100
Unrecognized compensation cost			$ 2,700
Vesting period			0 years
2017 Equity Incentive Plan [Member]
Equity Compensation Plans (Textual)
Class A stock authorized			4,100
Shares remain available			2,300
2016 Equity Incentive Plan [Member] | Purple LLC [Member]
Equity Compensation Plans (Textual)
Aggregate shares of common stock		12,000
Aggregate shares of common stock, granted		11,300

Employee Retirement Plan (Detai

Employee Retirement Plan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Retirement Plan (Textual)
Employee retirement plan, description	The plan provides for Company matching of employee contributions up to 5% of eligible earnings. Company contributions immediately vest.
Contribution expense	$ 400	$ 300